Sustainability Report 2022 - Sambonet Paderno Industrie by Sambonet Paderno Industrie

SUSTAINABILITY REPORT

20 22 SUSTAINABILITY REPORT

INDEX

1. 2.

FROM A MECHANICAL INDUSTRY TO A LEADER GROUP AT AN INTERNATIONAL LEVEL 1.1

Profile Our values and our history

1.2

Transparent management of our business Governance, Ethics and Compliance

1.3

The creation of value Economic performance

1.4

The relationship with the territory Local communities

WHAT SUSTAINABILITY MEANS FOR SAMBONET 2.1

The commitment to sustainability A long-term vision

2.2

Our interlocutors The strategic role of Stakeholders

2.3

What is important Materiality assessment

3. 4. 5.

CREATING VALUE WITHIN SAMBONET PADERNO 3.1

Us People at the heart of the company

3.2

From raw materials to shipping The production process

3.3

Higher productivity, lower environmental impact Natural resources throughout the process

PRODUCT RESPONSIBILITY AND CUSTOMER ORIENTATION 4.1

At the center of our attention The product

4.2

Our customers Their satisfaction

106

ATTACHMENTS 5.1

Methodological Note

112

5.2

Summary of Performance Indicators

114

5.3

Perimeter table of material topics

127

5.4

GRI Content Index

129

Sustainability Report 2022

LETTER TO

STAKEHOLDERS At Sambonet we create valuable products that we bring to your tables and to the kitchens of the best restaurants and hotels around the world. That’s why we consider sustainability as part of this value, on a par with quality, style and choice of raw materials. This awareness leads us to constantly develop and innovate our approach to business, in order to build a solid future that is increasingly ethical, sustainable and respectful of the territory hosting us and the people who are here every day. People are the core of many of our projects and they will guide us during 2023 towards an increasingly enlightened evolution. This is the direction we keep taking even this year, with determination and courage. We are doing it for Sambonet and, above all, for you. We are coming back to you again this year to tell you more about our values, the responsibility model we follow, the activities and results we have achieved so far in terms of Sustainability. We have been investing in this topic for a long time, but our commitment and enthusiasm are renewed day by day. Caring for the environment, respecting and valuing people and the surrounding territory are topics that concern everyone like never before, making more and more a difference even in the small daily or consumption choices of each of us. The sustainability of a product is, indeed, also the result of a supply chain in which clean energy and human resources have to be considered fundamental elements, on a par with the quality of the raw material or the design of the object itself. For this reason, in every step of our production process, we follow an efficient energy and environmental policy, we guarantee the safety of workers and products, and we apply management models that we always certify, according to international standards. We do it because we believe that, thanks to this 'virtuous' path, the company can also have a real competitive advantage for the future, combining the highest product quality with strong reliability in its operations.

The evolution of the international technological and economic scenario let us make important choices in our organization. We have invested both in industrial terms, towards 4.0 applications and self-generated renewable energy, and in social terms. In fact, about 300 employees work here, with an average age of under 50, most of them women. Today, we are investing more and more in welfare to support the well-being of our employees and their families, promoting work-life balance, and we are working on our future by progressively making changes in terms of inclusiveness between men and women in the workplace, parenting, but also in topics such as biodiversity. Respect for others is a value that also fuels business. We firmly believe in this and that’s why we will keep supporting it.

Franco Coppo C.E.O.

Sustainability Report 2022

2022 THE YEAR OF SAMBONET IN NUMBERS

80 Present in over 80 countries

305 Employees

89% Permanent contracts

Sustainability Report 2022

50%

Female executives

68%

Waste destined for recovery

7.'780mln

Know-how registered

pieces produced

2,5 mln of € investments for industry 4.0

26% Expenditure on local suppliers

90 mln of € Total revenue

100% Renewable energy

Sustainability Report 2022

CERTIFIED MANAGEMENT SYSTEM Sambonet Paderno Industrie S.p.A analyzes and examines the corporate context day by day to integrate improvements into all internal processes. Through certified management methodologies, a coordinated and punctual flow, dedicated teams and the constant consulting of accredited bodies, it makes the impact of every choice tangible and it always identifies new improvement goals. The Company has already achieved numerous goals but every day it is committed to continuous improvements by setting itself new challenges and goals to share with its stakeholders.

Sustainability Report 2022

SOCIAL RESPONSIBILITY MANAGEMENT SYSTEM

CERTIFIED CERTIFIED ENVIRONMENTAL ENVIRONMENTAL MANAGEMENT MANAGEMENT SYSTEM SYSTEM

CERTIFIED CERTIFIED MANAGEMENT MANAGEMENT SYSTEM SYSTEM

CERTIFIED CERTIFIED QUALITY QUALITY MANAGEMENT MANAGEMENT SYSTEM SYSTEM

UNI EN UNIISO EN14001:2015 ISO 14001:2015

UNI CEI UNIEN CEIISO EN50001:2018 ISO 50001:2018

UNI EN UNIISO EN9001:2015 ISO 9001:2015

MENTAL AL TEM

CERTIFIED CERTIFIED MANAGEMENT MANAGEMENT SYSTEM SYSTEM

CERTIFIED CERTIFIED QUALITY QUALITY MANAGEMENT SYSTEM MANAGEMENT SYSTEM

CERTIFIED CERTIFIED FOODFOOD SAFETY SAFETY MANAGEMENT SYSTEM MANAGEMENT SYSTEM

CERTIFIED CERTIFIED SAFETY SAFETY MANAGEMENT MANAGEMENT SYSTEM SYSTEM

015

UNI CEI UNI ENCEI ISOEN50001:2018 ISO 50001:2018

UNI EN UNI ISOEN9001:2015 ISO 9001:2015

UNI EN UNI ISOEN22000:2005 ISO 22000:2005

UNI ISO UNI45001:2018 ISO 45001:2018

CERTIFIED FOOD SAFETY MANAGEMENT SYSTEM

CERTIFIED SAFETY MANAGEMENT SYSTEM

SISTEMA DI GESTIONE SICUREZZA CERTIFICATO

UNI EN ISO 22000:2005

UNI ISO 45001:2018

MANAGEMENT SYSTEM ENVIRONMENT AND ENERGY CERTIFIED CERTIFIED FOOD FOOD SAFETY SAFETY MANAGEMENT MANAGEMENT SYSTEM SYSTEM

CERTIFIED CERTIFIED SAFETY SAFETY MANAGEMENT MANAGEMENT SYSTEM SYSTEM

SISTEMA SISTEMA DI GESTIONE DI GESTIONE SICUREZZA SICUREZZA CERTIFICATO CERTIFICATO

UNI EN UNIISO EN22000:2005 ISO 22000:2005

UNI ISO UNI45001:2018 ISO 45001:2018

MANAGEMENT SYSTEMS QUALITY AND FOOD SAFETY SISTEMA SISTEMA DI GESTIONE DI GESTIONE SICUREZZA SICUREZZA CERTIFICATO CERTIFICATO

UNI ISO UNI45001:2018 ISO 45001:2018

MANAGEMENT SYSTEM SAFETY

INTERNAL ANALYSIS LABORATORY

Sustainability Report 2022

1. 10

Sustainability Report 2022

LEA DER FROM A MECHANICAL FIRM TO A LEADER GROUP AT AN INTERNATIONAL LEVEL

1.1

Profile Our values and our history

1.2

Transparent management of our business Governance, Ethics and Compliance

1.3

The creation of value Economic performance

1.4

The relationship with the territory Local communities

Sustainability Report 2022

1.1

PROFILE

OUR VALUES AND OUR HISTORY

Sambonet Paderno Industrie is one of the most important realities of cutlery, tableware, cookware and accessories for the luxury kitchen in Italy, controlled by the families of the brothers Pierluigi and Franco Coppo through the Arcturus Group holding.

“ 12

Sustainability Report 2022

With more than a century of history behind them, Sambonet and Paderno, the two souls of the Company, represent the best practices of the sector serving both the Horeca sector and final consumers. The attention to the quality of the product combined with a strong interest in its aesthetics, have made the two brands of the Company, Sambonet and Paderno, award-winning and internationally recognized brands.

The Vision of Arcturus Group

Inspire and enhance every positive experience in the kitchen, at the table and in the home living. Sambonet Paderno carries out its activities in a production site which rises in an area of 110,000 square meters with an eco-friendly architecture, harmoniously inserted in nature, between Vercelli and Novara.

Constantly striving to be unique, it has always paid great artisanal attention to details, at the same time striking a steady balance between tradition and innovation. It has, in fact, been collaborating since the early ‘60s with the leading exponents of Italian design, including Gio Ponti, Anna Castelli Ferrieri, Rodolfo Dordoni and Giulio Iacchetti. The brand’s focus on design is still firmly established today in the work of the in-house Centro Stile (style centre) as well as in the recent contributions of the talented designers Serena Confalonieri and Gianni Cinti.

Always focused on the creation of products of excellent quality, it is a point of reference for professionals in the culinary sector. In fact, the brand offers a wide range of pots and other tools that guarantee the best performance in the kitchen, suited to the precious needs and refined techniques of internationally renowned chefs.

Sustainability Report 2022

1.1 PROFILE

OUR VALUES AND OUR HISTORY

Between nature and design THE SAMBONET PADERNO PLANT The entire site has been imagined, as a whole, as a design object integrated within the context of the Piedmont countryside. The plant project, followed by the Frigerio Design Group studio, has been able to harmonize forms and functions with the image of the surrounding territory characterized, in some ways, by great contradictions: pervaded on one side by the rhythms of production and trade, but on the other side, marked by the secular rhythms of the agricultural world. The culture and traditions that distinguish the surrounding area become the inspiring elements of the architectural project, which precisely arises from the recognition of the peculiar and constitutive characteristics of the surrounding landscape: from the geometries of the road layouts to the subdivision of patches of paddy field according to Cartesian forms, to the courses of irrigation channels. The large green spaces have allowed to rationally organize the internal and external spaces, while at the same time opening major prospects for architecture experimentation and for the innovative use of building materials.

Sustainability Report 2022

The surrounding spaces have allowed to imagine a site that develops horizontally: a large container with a highly technological appearance whose facades assume the function of a real grilled screen, a border between open spaces and the world of production and sales, separated by thin limits made up of the glass walls. The plant has been designed as a single floor to facilitate internal circulation as much as possible, while the showrooms and offices are articulated on two floors; in particular, the technical offices related to production are located on the first floor immediately above the production plant to be directly in contact with the production lines. The window, which is 100 meters long and 8 meters high, projects the offices outwards by day, while at night it discovers the activities it contains. Instead, on the facades of the sheds a grit finish recalls the worked metals with its glossy appearance. Finally, to design the greenery, the typical rural elements of the area were used, such as flat green meadows like rice fields and rows of cypress poplars, natural landscapes that define borders or paths.

The philosophy of Slow Architecture according to the Frigerio Design studio: Context and Sustainability. We perceive in every place the concrete echo of a unique and unrepeatable story: we are able to take the good that the context offers spontaneously, its variety of stimuli and inspirations, its resources: culture, climate, atmospheres, lights, materials including scraps, even shards, because – as Japanese art 'kintsugi' of repairing with gold teaches - each crock has broken in its own way, transmitting a story to be valued. This raw material, available effortlessly, is the fuel with which we feed ideas and design solutions for the success of a unique and unrepeatable architecture, which can build a bridge between tradition and innovation". “We are committed to not leaving footprints: we want to reduce the ecological footprint and make more coherent and conscious use of materials and resources. To do so we follow the lesson provided by nature in whose circular processes nothing is wasted, and by the past. We aim to be sustainable from the outset. Because the energy consumption of the building is only the final phase of a process that has already started from the energy used in the production of the architectural pieces and components that we have chosen to use".

Sustainability Report 2022

1.1 PROFILE

OUR VALUES AND OUR HISTORY

The Design

WHAT MAKES US UNIQUE Undoubtedly the distinctive trait in Sambonet's work and design is given by its autonomy in realization, from the concept and the design phase to the production phase, thus giving all products a clear connotation of craftsmanship: 90% of the products are in fact signed by the style center of the company. This has always helped to strengthen the brand identity, making it exclusive and unmistakable in the international panorama. Collaborations with renowned external designers are linked to specific projects and enrich the wide "home-made" offer.

Sustainability Report 2022

Each Sambonet product is a unique design work, where originality and craftsmanship are combined with technical innovation. Each piece comes from a solid Italian tradition and is made using the best materials and with a marked orientation to excellence. The consolidated know-how allows to propose on the market exclusive products that stand out for the unique and award-winning design signed Sambonet, which today boasts 500 international awards. An example is the Pesciera designed by Roberto Sambonet, winner of the Compasso d'Oro in 1970 and currently in the collection at the MoMA in New York. Entirely in stainless steel, it is an expression of a refined masterpiece of design and engineering, difficult to imitate because of the complexity of steel stamping. The various collaborations with some of the most important designers and architects in the world.

AWARDS RECOGNISED AT INTERNATIONAL LEVEL

While the company’s past includes collaborations with Gio Ponti and Anna Castelli Ferrieri - whose Hannah project won the highly prestigious ADI Compasso d’Oro in 1994 - Sambonet’s present features signature projects that express its ambition to deliver outstanding quality in both form and function. In 2022, the Centro Stile added the German Innovation Award to its list of accolades with “Living - The Extra Cutlery”, for the exceptional innovative value and design of this item, inspired by the perfect symmetry of a compass and the natural motion of the fingers. Not tongs but a new piece of cutlery, not a substitute for the fork on the table, but rather alongside it to suggest new creative uses

Sustainability Report 2022

1.1 PROFILE

OUR VALUES AND OUR HISTORY

The origins

WHO WE ARE

1978

1997

The company originates from the Officine Meccaniche Giovanni Coppo firm, born in 1978 in Milan. The brothers Pierluigi and Franco Coppo started an entrepreneurial success story with the acquisition, in 1979, of Paderno, a Group founded in 1925 in Milan, a world reference point for professional cookware, and in 1997 of Sambonet, a historic Piedmontese company of cutlery and pottery, founded in Vercelli on 15 May, 1856 by Giuseppe Sambonet, goldsmith and graduate from the Institute of Fine Arts.

Between 1997 and 1999 the new headquarters was built, an ecocompatible architecture, harmoniously inserted in nature, designed by the architect Enrico Frigerio based in Novara.

Sustainability Report 2022

2004 In November 2004 the two brands merged and the company changed its name to "Sambonet Paderno Industrie".

Certifications

The identity

Our history

2005 Since 2005, Sambonet Paderno Industrie has undertaken a path of acquisition of certifications in different fields, which highlight a growing attention to ESG issues.

Confindustria Awards for Excellence

Acquisition

In 2006 the company received the Confindustria Awards for Excellence from Confindustria, an honorific created to reward excellent companies that have distinguished themselves in Made in Italy, innovation and enhancement of the territory.

Acturus Group

2006

2013 The portfolio of the Holding Arcturus Group, parent company of Sambonet Paderno Industrie S.p.A , expanded in 2013 with the acquisition of the German porcelain brand Arzberg and in 2015 with the acquisition of the historic French porcelain excellences of Limoges Raynaud and Ercuis silver cutlery.

2009 This acquisition, together with the skills acquired by Sambonet in the hospitality industry, marked a fundamental point in the international development of the Group, guaranteeing it a leading role in the table top Home, Ho.Re.Ca. and Contract.

The result of this corporate strategy, aimed at growth and acquisitions, is the establishment of a leading reality in terms of quality, diversification and complementarity of the table and kitchen offer, which ranges from medium-high level to extreme luxury thanks to the different identities of its brands.

Sustainability Report 2022

1.1 PROFILE

OUR VALUES AND OUR HISTORY

Our target

TO WHOM WE ADDRESS Sambonet Paderno Industrie, present in over 30 countries, mainly Italy, Germany and United States, offers its high quality and refined products to a wide range of players.

The company’s main customers are companies or third-party resellers. In particular: • Resellers: the Company partners with numerous shops and retailers selling cutlery, cookware and tableware in general as well as living room accessories, all of a high standard. And indeed, our core target segment is made up of style-conscious people with aspirations for their home environment and keen foodies; • Ho.Re.Ca (Hôtellerie-Restaurant-Cafè): the Company supplies its products to multiple hotel chains, hotels, restaurants, eateries and other hospitality venues around the world thanks to its global presence. • E-commerce: Sambonet Paderno Industrie also caters to end consumers at an international level via its Sambonet and Paderno online shops and, locally, through the company Outlet, located next to its headquarters in Orfengo

Sustainability Report 2022

The Company is careful to satisfy the needs of each category of consumers and customers: from hotels, to restaurants, to customers reached through e-commerce/specialized retailers, Sambonet respects their expectations and needs through the wide range of products of the two brands.

4% 67%

E-commerce:

29%

Resellers

Ho.Re.Ca

Sustainability Report 2022

Sambonet, an international leader in the production of cutlery and tableware in stainless steel, stainless steel and silver-plated nickel silver is more or less equally split between the HORECA and retail sectors. In addition to its tableware lines, Sambonet has introduced a “Luxury” collection featuring a refined selection of top-quality products, and a basic kitchen collection. This practical, functional series of cooking utensils combines the brand’s style with state-of-theart cooking technology.

CUTLERY

TABLE & SERVING

COOKWARE

BAKERY

KITCHEN

HOME BAR

ETHNIC CUISINE

BAR AND ACCESSORIES

KNIVES

KITCHEN UTENSILS

HOME DECOR

Paderno mainly operates in the professional sector and stands out for the excellence of its production of cookware in stainless steel, copper, aluminium, iron and enamelled cast iron. The brand also produces over 10,000 items intended for chefs and gourmet foodies: knives and other utensils to recreate state-ofthe-art kitchens.

Sustainability Report 2022

Arthur Krupp inspires every table with an evergrowing range of cutlery and holloware in stainless steel - also in PVD colours - in addition to porcelain and stoneware collections with modern designs and vibrant decorations, perfect to meet every style need in professional catering and more.

CHINA AND BONECHINA

PEPPER AND SALT MACHINES

VASELS

TABLE

COFFEE AND TEA

Sustainability Report 2022

1.2

TRANSPARENT MANAGEMENT OF OUR BUSINESS GOVERNANCE, ETHICS AND COMPLIANCE

Fairness and Transparency

THE VALUES OF A RESPONSIBLE BUSINESS Fairness and transparency are the basis of the Group's decision-making and operational process. In fact, Sambonet Paderno Industrie has always pursued the achievement of its corporate goals through activities carried out in compliance with the law and fundamental human rights, and it has also always imposed itself clear and transparent rules, in harmony with the purposes of its bearers of value.

Sustainability Report 2022

In 2015, the actions described above were formalized in the first edition of the Company's Code of Ethics, a set of fundamental guidelines that inspire the Company's activities and guide the behaviors of its Employees and of all other thirdparty interlocutors for the proper functioning, reliability and image of the Company itself. In this framework, Sambonet pays particular attention to the human factor: people are the main reference point of everything that is done. The Company is committed to making the most of the professionalism of each and every one of its skilled workers and has always strived to ensure a safe and comfortable workplace. The strict compliance with occupational health and safety regulations is also confirmed by a specific certification process that led Sambonet Paderno Industrie to achieve UNI EN ISO 45001 in 2020. This certification replaced the OHSAS 18001 that the company obtained in 2006.

THE VALUES IN WHICH SAMBONET BELIEVES

FAIRNESS AND TRANSPARENCY

SOCIAL RESPONSIBILITY

CENTRALITY AND PROTECTION OF PEOPLE

IMPARTIALITY

The attention that the Company shows towards its Employees and external Customers is supported by the numerous certifications that have been achieved over the years. In this framework, with a view to improving the effectiveness and efficiency of its business processes, Sambonet has certified its integrated system according to the following international standards: - UNI EN ISO 9001 quality management system, - UNI EN ISO 14001 environmental management system, - UNI EN ISO 50001 energy management system, - UNI EN ISO 45001 occupational health and safety management system, - UNI EN ISO 22000, environmental management system. The company has adopted an integrated policy suited to the size and activity of the organization, aimed at the continuous improvement of environmental performance and prevention of pollution. This policy has been integrated by adopting schemes concerning quality, the environment, worker safety, energy and food safety. Signed by the management, it was communicated to all Employees by posting it on the company bulletin boards and published on the company website. Sambonet is aware that social responsibility is today a concept stated in the economic, environmental and social debate, and believes that it is a useful concept for the progress of society, therefore, the Company set its own behaviour and conduct in accordance with internationally recognised principles of social responsibility, obtaining the certification according to the SR10 scheme. Social responsibility is integrated with the entire decision-making and operational process, taking into account all its dimensions: social, economic and environmental.

TECHNOLOGICAL EXCELLENCE AND INNOVATION

Sambonet has also set up a high specialised internal chemical lab called Aseclab - Alimentary Security Control Laboratory, accredited according to UNI EN ISO 17025:2018. Product characterisation analyses to verify food contact safety, environmental analyses and process analyses to support in-house production are performed here.

BUSINESS ETHICS Sustainability Report 2022

1.2 GESTIONE TRASPARENTE DEL NOSTRO BUSINESS. GOVERNANCE, ETICA E COMPLIANCE

Governance

THE CORPORATE STRUCTURE Sambonet Paderno Industrie is the business that brought to life the current Arcturus Group, an Italian holding that includes well-known international porcelain and silverware brands of the highest quality. A success story the Coppo family embarked on, transforming the company in its early days 1978 from “a mechanical workshop in Milan to an international leader in prestige tableware”.

The company adopts a traditional Governance model, in which there is a Sole Administrator and the Board of Statutory Auditors. Sambonet relies on a leading independent auditing firm to audit the financial statements, which ensures the correct application of national and international accounting standards.

The Board of Statutory Auditors, on the other hand, is responsible for protecting the integrity of the company’s business. It is a body composed of third-party and certified professionals, completely independent, which controls the management of the company according to the law and the main financial principles.

The role of Sole Administrator, also the highest governing body, is played by one of the shareholders of the Coppo Family, which is part of the Board of Directors of the Arcturus Group. The latter has all the powers of ordinary and extraordinary administration as well as the ones of representation of the company, as required by Art.22 and 23 of the Bylaws;

In reference to the management of issues related to Sustainability, Sambonet is structuring a dedicated team, which will have the role of carrying out initiatives related to ESG issues, monitoring the compliance of the Company with new regulations and finally, coordinating activities concerning sustainability reporting.

Sustainability Report 2022

Compliance

AND RISK MANAGEMENT

Starting from the end of November 2021, the Company has adopted its own Organization, Management and Control Model pursuant to Legislative Decree 231/01 (hereinafter Model 231 or M.O.G.) for the management of environmental risks and those related to the health and safety of the individual. This initiative was taken in the belief that the adoption of the Model can be a valid tool for raising awareness among all those who work in the name and on behalf of the company, so that they adopt correct and linear behavior in carrying out their activities, such as to prevent risk of committing the offenses provided for by the Decree itself. In particular, through the adoption of the Model, the company aims to pursue a thorough and periodic monitoring of the areas of activities at risk and to intervene promptly to prevent or counter the carrying out of the crimes themselves. The Organizational Model, however, has been completed with the establishment of a Supervisory Body that, as required by the Article 6 of Legislative Decree n.231/2001, has the function of overseeing the functioning, effectiveness and compliance with the Organizational Model, taking care of its constant updating.

During the year 2022 specific training sessions on the Model and the application of the Code of Ethics will be provided to all Sambonet employees, from blue-collars to executives, in order to spread the culture of Ethics and at the same time of Compliance within the Company.

zero

Confirmed corruption incidents in 2022

zero

Lawsuits for anti-competitive behavior, antitrust and monopolistic practices in 2022

zero

N° of episodes of monetary and/or non-monetary sanctions for non-compliance with environmental/social laws or regulations

Sustainability Report 2022

1.3

THE CREATION OF VALUE ECONOMIC PERFORMANCE

2022 Main economic results SAMBONET PADERNO INDUSTRIE S.p.A The 2022 Financial Statements for Sambonet Paderno Industrie closed with revenues from sales and services of EUR 87.807.000, posting a yearon-year increase of 25% and a 36% increase over 2019 (pre-Covid year).

In addition, the outlook for the future development of operations is positive with respect to both the performance in the 2022 financial year and the favourable prospects for 2023, supported by a high order backlog.

Value generated and distributed TO THE STAKEHOLDERS The prospectus of the distribution of the economic value generated expresses, in monetary terms, the relationship between Sambonet and the socio-economic system of reference, measuring its ability to create and distribute wealth among its main stakeholders as suppliers, employees, public administration, investors and local communities.

Sustainability Report 2022

The company is committed to responsible and aware distribution of the value it creates through its business activities. The table below shows the portions of economic value distributed to the various bearers of value of the Company, identified by reclassification of the profit and loss account. In 2022, the economic value generated amounted to about 89,662 million euros, while that distributed amounted to about 75,507.

2022 Economic value directly generated Revenues Other revenues Interest income Economic value distributed Distributed to suppliers Distributed to employees Distributed to capital providers Distributed to the Public Administration Payments to the Local Communities Economic Value Retained

89.662 87.807 1.855 202 78.343 61.487 14.020 192 2.605 38 14.155

Economic value distributed

1% Distributed to capital providers

18% Distributed to employees

3% Distributed to the Public Administration

78% Distributed to suppliers

In general, the largest share of the total value distributed was distributed to the Suppliers category, for a total of 78%: the item includes the purchases of raw materials and other operating costs such as goods and services, third-party assets and management costs. The other category to which a significant share has been distributed are the Employees, to whom through wages and salaries, severance pay, social charges, various benefits and other personnel costs was distributed about 18% of the total value distributed. 1

The remainder of the distributed value, a total of about 3%, is allocated to Capital Suppliers, the Public Administration, through the payment of current fees and other various taxes and to local communities for which the Company has registered donations, including one towards Ared.N.G.S.A. Onlus and another for the restoration of a church located in the Municipality of Orfengo.1

For more on the relationship between Sambonet and Local Communities, please refer to chapter "1.4 The Relationship with the Territory."

Sustainability Report 2022

1.4

THE RELATIONSHIP WITH THE TERRITORY LOCAL COMMUNITIES

Sambonet has always been committed to supporting local communities; the bond between society and the surrounding territory has always been marked by initiatives, donations and other activities that the Company have involved with. For the Company it is essential to maintain an active relationship with students, as a way to promote the possibility of passing on to new generations the art of Italian craftsmanship, as well as a way to encourage the exchange of skills between the educational world and the industrial one, through educational paths that respond to the work needs of today and that train specialized personnel. Always with the same goal of addressing young talents, the Company has joined a network of companies that allows children in neighboring areas to have school-work experiences. In this context, Sambonet also gives the possibility to its employees' children to carry out their first work experience to preserve and pass on their know-how in the manufacture of cutlery and cookware.

Sustainability Report 2022

Sambonet Paderno’s involvement in local communities is not only limited to the world of education, but also extends to support and proximity to citizens (about 80% of Sambonet employees are residents of the areas Vercelli and Novara) and associations, municipalities and other public institutions. The Company, which considers of fundamental importance to establish virtuous relationships with the social fabric of the territory, has consolidated stable relationships with realities such as Confindustria Novara Vercelli Valsesia, ANIMA Confindustria meccanica. Federation of European manufacturers of Cookware and cutlery – FEC, Association of Italian manufacturers of household, tableware and similar items - FIAC. Some initiatives that have characterized the involvement of Sambonet in the local community during the year 2020 and 2021 are listed below.

Sustainability Report 2022

SCHOLARSHIPS FOR VOCATIONAL SCHOOLS After launching the first edition of the educational project for students from vocational schools in the area, Sambonet awarded twelve scholarships and renewed its commitment for the upcoming school year. The funding for the most deserving students aims, once again, to promote qualified training courses in mechanics and electronics of the technical institutes Giuseppe Omar in Novara, Giulio Cesare Faccio in Vercelli and the Ascanio Sobrero Institute in Casale Monferrato.

Maria Valentina Francia Born in 1926, Maria Valentina Francia, mother of the company's owners Pierluigi and Franco Coppo, was a woman who, despite the lack of opportunity to pursue higher education, fought for the importance of education, starting with her children and later her grandchildren. At the age of seventy, following her youthful dreams, Maria Valentina Francia attended training courses in psychology and history at the “adult university”, redeeming and finally following her vision in person.

Sustainability Report 2022

SUPPORT FOR NOVARA'S CULTURAL AND ARTISTIC HERITAGE Sambonet, in partnership with the “Fondazione Comunità Novarese Onlus”, has contributed to the fund-raising campaign to restore the main door of San Pietro Apostolo church in Casalvolone, an artefact dating back to the 18th century This small initiative is one of the many in which Sambonet Paderno Industrie participates in the social, environmental and cultural sphere, following the idea that even just a small contribution can make a difference.

Sustainability Report 2022

UNIVERSITY EDUCATION The company attended the "Chemistry Day" in Vercelli, promoted by the UPO (University of Eastern Piedmont) to connect local companies committed to building their own path of environmental sustainability with “Green Chemistry” teachers and students. Sambonet joined this project to offer insights to young people so that they can build their own professionalism and future with an eye on sustainability.

Sustainability Report 2022

COMMUNICATION PROJECT WORK Sambonet brand was featured in an interesting project work within the Master's program in "Digital Communication & Social Media Marketing" at the 24ORE Business School in Milan, born as a division of the eponymous newspaper and now one of Italy's leading professional training institutes. Meetings led by the company's marketing team brought interest, creative ideas, and great enthusiasm among students, creating new opportunities to showcase the brand's excellence to "communication professionals of tomorrow."

Sustainability Report 2022

OPEN DOORS FOR THE CHEFS OF TOMORROW The long-established collaboration between the company and ICIF - the Italian International Culinary Institute - gives the opportunity to connect our country’s culinary excellence with the quality of the tools used in the kitchen. Even this year, the company took the students from the institute's first and second-level culinary and pastry master's programs on a tour of its production, conveying the attention, genius, and values - including sustainability - that feature Paderno and Arcturus Group Ho.Re.Ca. business.

Sustainability Report 2022

MANAGEMENT TRAINING Sambonet Paderno Industrie attended 'FabbricaFuturo', the conference held in Turin and promoted by the ESTE publishing house. The meeting aimed to raise awareness among companies towards the ecological transition and emphasize the importance of digitalization, training, sustainability and the need to create energy management. The company's speech, entitled 'Using energy to create value', was focused on the path towards using clean energy in the production chain, as it is considered a fundamental element on a par with raw material.

Sustainability Report 2022

SUPPORTING LOCAL SUSTAINABILITY WITH LEGAMBIENTE The sponsorship of the 'Il Pioppo' Club - the local constituency of Legambiente Ovest Ticino e Novarese - continues. In 2022, the project supported seven small towns in the Novara province launching a canteen service for the schools in these municipalities, built according to high criteria of environmental sustainability.

Sustainability Report 2022

SUPPORTING CONFINDUSTRIA AND LOCAL BUSINESSES The company proudly opened the doors of its headquarters to Confindustria in June, hosting the Annual General Meeting of the Novara Vercelli and Valsesia constituency. The appointment, bringing together institutions and member companies from the area to introduce the annual report, was also an opportunity to discuss several topical issues of common interest. The main topics of the speeches - including the one of Confindustria President, Carlo Bonomi were the Industry 4.0 plan and the need for structural reforms in favor of work and workers' wages, following Sambonet entrepreneurial vision as well.

Sustainability Report 2022

2. 40

Sustainability Report 2022

SUS TAINA BILI TY SUSTAINABILITY FOR SAMBONET 2.1

The commitment to sustainability A long-term vision

2.2

Our interlocutors The strategic role of stakeholders

2.3

What is important Materiality assessment

Sustainability Report 2022

2.1

THE COMMITMENT TO SUSTAINABILITY A LONG-TERM VISION

Sambonet Paderno Industrie has consolidated and increasingly strengthened over the years its commitment to the integration of the principles of environmental, social and ethical sustainability in every business activity. Sustainability, transparency and awareness are the key words of the Company’s way of acting. This approach has guided the industrial growth of recent years, growth accompanied by the implementation of a responsible, sustainable and respectful policy towards people and the territory. Testifying to its commitment of more than 10 years, Sambonet publishes its Sustainability Report. The Company took a significant step towards Sustainability in 2022 with the publication of its first Sustainability Report, prepared according to the GRI Standards; this document was particularly important because it represented the Company’s desire to achieve increasingly accurate levels of transparency and data accuracy.

The Company took a significant step towards Sustainability in 2022 with the publication of its first Sustainability Report, prepared according to the GRI Standards; this document was particularly important because it represented the Company’s desire to achieve

increasingly accurate levels of transparency and data accuracy.

HOW SAMBONET TACKLES CHANGE

Sustainability Report for more than 10 years

New photovoltaic System

Paper reduction and digital archiving

Monitoring of consumption and discharges

Well-being of employees and attention to the territory

Use of recyclable materials and waste reduction

Sustainability Report 2022

The publication of the 2022 Sustainability Report allowed Sambonet to perform, for the first time, a comprehensive analysis, which identified both the key stakeholder categories and the relevant topics within which its positive and negative impacts in terms of sustainability are manifested. This continued in 2023, leading to the publication of this document.

In the coming years, Sambonet intends to improve its impact on the quality of life of people and the territory. Development and economic growth must go hand-in-hand with responsibility and sustainability. Research and development together with new technologies are necessary tools for corporate growth.

Sustainability Report 2022

Sambonet’s commitment to ESG issues, with particular reference to the 17 Sustainable Development Goals set forth in the 2030 Agenda for Sustainable Development, is expressed through the cultivation of a corporate culture that focuses on respecting and valuing people, protecting and safeguarding the environment with a view to responsible consumption and production, together with the technological innovation pursued over the years, aware of the opportunity and added value associated with partnerships.

Sustainability Report 2022

The results of Sambonet Paderno’s management, increasingly attentive to sustainability, have also been confirmed by the rating received from EcoVadis, one of the world’s leading providers of business sustainability ratings. In fact, the company was assessed across a number of areas (environment, labour and human rights, ethics and sustainable procurement), and in 2022 it again earned a percentile ranking of 92 in the cutlery, hand utensils and hardware production sector in general, demonstrating its alignment with the industry’s benchmark companies.

Sustainability Report 2022

OUR 2.2 INTERLOCUTORS THE STRATEGIC ROLE OF STAKEHOLDERS

In carrying out its activity, the Company comes into contact with a multitude of stakeholder categories, which are all those actors directly and/or indirectly influenced by the activities of the organization, or who actively influence its work. In reference to the sustainability process undertaken, the stakeholders represent key interlocutors with whom Sambonet is absolutely transparent: the Company is committed to their involvement and inclusion of their priorities and perceptions within the definition of the corporate strategy. Thanks to the requirements pursued over the years in the field of Corporate Social Responsibility and the commitment required also to suppliers and

Sustainability Report 2022

intermediaries with whom Sambonet Paderno Industrie collaborates internationally, the Company is now able to offer objective guarantees to the various categories of interlocutors, from employees, to customers, to the market, to the community, to bodies and institutions.

Sustainability Report 2022

A more exhaustive overview of the Stakeholder categories with which Sambonet Paderno Industrie Spa interacts frequently is provided below.

FINAL CONSUMERS

SUPPLIERS PROPERTY

CUSTOMERS

TRADE UNIONS

EMPLOYEES

ASSOCIATIONS AND NGOS

MEDIA

LOCAL COMMUNITIES

PARTNERS

INVESTORS AND BANKS

Sustainability Report 2022

GOVERNMENT ENTITIES, INSTITUTIONS AND PUBLIC ADMINISTRATION

SCHOOLS, UNIVERSITIES AND RESEARCH CENTERS

The involvement of the identified interlocutors takes place mostly within the framework of normal business activities and is based on a constant and transparent communication that allows to establish a constructive dialogue. The following table summarizes the main ways of involvement for each category of Stakeholder:

CATEGORY OF STAKEHOLDERS

METHOD OF ENGAGEMENT

B2B CUSTOMERS

Press reviews, social media, website, questionnaires, online and offline advertising, publications (price lists, catalogues, etc.), PoS materials, newsletters, conferences/visits and factory tours, sector fairs and roadshows.

FINAL CONSUMERS

Social media, website, questionnaires, online and offline advertising, publications (brochures, catalogues, etc.), PoS materials, newsletters.

SUPPLIERS

Website, conferences/visits.

PROPERTY

Press releases, press reviews, website, internal meetings.

EMPLOYEES

Press reviews, social media, website, questionnaires, newsletters or internal emails, company bulletin boards, internal meetings.

INVESTORS AND BANKS

Press releases, website, meetings and gatherings.

LOCAL COMMUNITIES

Website, online and offline advertising, conferences/visits and Open Day.

SCHOOLS, UNIVERSITIES AND RESEARCH CENTERS

Website, conferences/visits and Open Days, Scholarships.

ASSOCIATIONS AND NGOs

Website.

TRADE UNIONS

Newsletters, corporate bulletin boards, conferences/visits and Open Days, internal meetings.

GOVERNMENT ENTITIES, INSTITUTIONS AND PUBLIC ADMINISTRATION

Website.

PARTNERS

Website, publications (price lists, catalogues, education or training, sector fairs and roadshows).

MEDIA

Social media, website, publications (price lists, catalogues), sector fairs and Roadshows.

Sustainability Report 2022

WHAT IS 2.3 IMPORTANT

MATERIALITY ASSESSMENT

The materiality assessment is the tool used to define "material" issues, which are those aspects of economic, social and environmental responsibility that are important for both the Company and its Stakeholders, shown in the Sustainability Report. The "material" topics are therefore able to influence both the corporate strategy of the organization and the opinions and assessments of its stakeholders. The process of defining these topics, undertaken last year through the benchmarking analysis and the company workshop, was implemented by surveying a group of internal (employees) and external stakeholders (customers, suppliers, schools, universities and research centres, institutions, Italian and international media). The data acquired was analysed, making it possible to update Sambonet Paderno Industrie’s materiality matrix (see the graph below). This provides a concise representation of the topics that are of priority to the organisation, crossreferencing them with the level of interest they have for its stakeholders and confirming what had already emerged from the previous analysis.

Sustainability Report 2022

MATRIX OF MATERIALITY OF THE ORGANIZATION 5

Wellness of staff

Governance, Ethics and Integrity

Environmental responsibility

Economic responsibility

Responsibility towards personnel

Product responsibility

Social responsibility

Diversity and inclusion

Relevance for stakeholders

Training, attraction and retention of talent Responsible sourcing

Protection of human and workers' rights Worker's health and safety

Responsible packaging

Energy management and climate change Quality, sustainability and product safety Customare satisfaction

Research, development and product&process innovations

Stakeholders engagement and relations

Waste management and circular economy

Management of water resources

Commitment and relationships with interested parties Corporate governance

Compliance and risk management

Value creation

3 Sambonet Relevance for

Sustainability Report 2022

The results of the vote led to the identification of 18 material issues:

MATERIAL TOPICS

CORPORATE DESCRIPTION

GOVERNANCE

Definition of a governance structure that includes criteria of social and environmental responsibility. Transparent communication on the organization’s good governance practices and adherence to international best practices/regulations.

COMPLIANCE AND RISK MANAGEMENT

Integrity and transparency in business activity that includes the adoption of a Code of Ethics, policies and procedures to support compliance with current regulations. Adherence to national and international principles and guidelines that include areas of social and environmental responsibility. Identification, assessment and management of present and potential economic, social and environmental risks to which Sambonet is exposed.

VALUE CREATION

Ability of the Group to create and distribute value between the different categories of stakeholders. Pursue economic and financial results and ensure socio-economic and environmental balance in medium-long term.

RESEARCH, DEVELOPMENT AND PRODUCT AND PROCESS INNOVATIONS

Research and development activities aimed at the design of innovative and more sustainable products, with particular attention to the integration of new technologies in production, or the continuous improvement of processes.

QUALITY, SUSTAINABILITY AND PRODUCT SAFETY

Development of products and services that comply with high quality and safety criteria aligned with national and international standards and industry best practices.

CUSTOMER SATISFACTION

Offering products and services that meet customer needs and monitoring their degree of satisfaction to pursue continuous improvement.

TERRITORIAL PROTECTION AND DEVELOPMENT OF LOCAL COMMUNITIES

Support to local communities through sponsorships, donations and partnerships aimed at creating a sustainable and cultural development in the areas close to the reality of Sambonet (Province of Novara and Vercelli). Promotion of the conservation and/or creation of habitats conducive to the maintenance of native flora and fauna.

Sustainability Report 2022

MATERIAL TOPICS

CORPORATE DESCRIPTION

RESPONSIBLE SOURCING

Selection and monitoring of suppliers according to social and environmental criteria and promotion of social responsibility behaviour also through selection of certified raw materials.

ENERGY MANAGEMENT AND CLIMATE CHANGE

Reduction of carbon dioxide emissions and compensation of those that cannot be eliminated. Focus on energy efficiency and the use of renewable energy sources.

MANAGEMENT OF WATER RESOURCES

Conscious and efficient management of water resources and definition of efficiency strategies in water use. Monitoring practices for the chemical, physical and biological quality of discharges.

SUSTAINABLE PACKAGING

Attention to the sustainability of product packaging, to minimize non-recyclable materials, promote the recovery of materials and prefer the compostable and biodegradable, derived from plant products (for example tissue paper or Kraft paper without plasticization).

WASTE MANAGEMENT AND CIRCULAR ECONOMY

Responsible management of waste related to business activities. Promotion of circular economy activities and waste recovery.

WORKERS' HEALTH AND SAFETY

Policies, procedures and management systems that promote the protection of health and safety in the workplace in full compliance with the related regulatory requirements, which also include periodic monitoring activities.

ENHANCEMENT AND WELL-BEING OF STAFF

Promotion of initiatives to improve the well-being of employees and the right balance between private and working life. Ensure learning and training paths to improve employee skills and attract talent.

DIVERSITY, INCLUSION AND PROTECTION OF HUMAN AND WORKERS' RIGHTS

Promotion of equal opportunities through the development of inclusion policies and the enhancement of diversity. Ensuring respect for human rights for all people involved, through Code of Ethics, Management Systems and adhesions to international charters and principles.

Sustainability Report 2022

MATERIAL TOPICS

CORPORATE DESCRIPTION

TRAINING, ATTRACTION AND RETENTION OF TALENT

Guaranteed education, learning and training to improve employee skills and attract talent, making the Organization an attractive place to work.

PROTECTION OF HUMAN AND WORKERS' RIGHTS

Maintaining a high ethical standard and adhering to fundamental international rights throughout the entire supply chain, ensuring dignity and respect for human rights for all individuals involved. Ensuring transparency in all business operations and across the supply chain (e.g., regular publication of public reports containing sustainability metrics and progress toward goals). A fair and moral code of conduct for the strategic and operational management of affairs, in compliance with relevant laws, policies, and regulations.

STAKEHOLDERS ENGAGEMENT & RELATIONS

Support to local communities through the distribution of generated value (e.g., salaries, purchases from local suppliers, contributions to sociocultural development initiatives, etc.). Partnerships with local, national, and international associations and organizations aimed at fostering sustainable socioeconomic and cultural development in the areas near Sambonet's operations (Province of Novara and Vercelli). Promotion of the conservation and/or creation of habitats conducive to the preservation of native flora and fauna, especially in areas where Sambonet has its production facilities.

Sustainability Report 2022

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Sustainability Report 2022

VAL UE CREATING VALUE WITHIN SAMBONET PADERNO 3.1

Us People at the heart of the company

3.2

From raw materials to shipping The production process

3.3

Higher productivity, lower environmental impact Natural resources throughout the process

Sustainability Report 2022

3.1 US

PEOPLE AT THE HEART OF THE COMPANY

Creating value

WITHIN SAMBONET PADERNO

It is thanks to the skills of the employees, the quality of the raw material and the increasingly innovative production process that Sambonet produces excellent products. Sambonet is aware of how these factors influence the success of the Company and every day tries to invest in its people, in responsible procurement and in the continuous efficiency and modernization of its production process.

Sustainability Report 2022

Sambonet is fully aware of the strategic role that its people have in the success of the Company and the valuable contribution that they make day after day. For this reason, the Company values and protects the human heritage from many points of view, encouraging the inclusion of young people into the world of work, ensuring equal opportunities and respecting the great value of diversity, in all its facets.

Sustainability Report 2022

3.1 US

PEOPLE AT THE HEART OF THE COMPANY

In particular: Selecting staff on the basis of

CRITERIA OF OBJECTIVITY, COMPETENCE AND PROFESSIONALISM, ensuring equal opportunities and avoiding any favoritism and aiming to ensure that the Company has the best skills in the job market.

Maintaining an internal environment that

PROMOTES THE INVOLVEMENT OF THE STAFF

in the achievement of the organization’s objectives.

COMBATING FORCED AND CHILD LABOUR

CREATING A SAFE WORKING ENVIRONMENT in accordance with national and international directives on the matter and with the voluntary standard UNI EN ISO 45001.

Complying with the

REQUIREMENTS ON CONFIDENTIALITY of personal data contained in the Data Protection Code in accordance to EU Regulation 2016/679. 60

Sustainability Report 2022

RESPECTING WORKERS' RIGHTS of unionisation and of collective representation.

Establishing a

REMUNERATION POLICY that supports a dignified lifestyle.

Respecting all

SOCIAL PROTECTION RIGHTS (sickness and accident, pension, unemployment insurance, etc.), to protect the stability and quality of jobs.

Investing

IN UPDATING KNOWLEDGE AND SKILLS that could improve their career prospects and productivity as well as the competitiveness of the organization.

Aiming for

AN ADEQUATE WORK-LIFE BALANCE.

Encouraging

RESPECT FOR HUMAN DIGNITY.

Sustainability Report 2022

3.1 US

PEOPLE AT THE HEART OF THE COMPANY

The attention to the staff begins the same day you become part of the Sambonet Paderno family, in fact, during 2021, the Company has drawn up a "Welcome Book", structured document that from 2022 will be provided to all new hires with the aim of making the on-boarding and integration process more fluid and effective in the company. In fact, with this document, the new entry immediately gets to know the values, practices and policies of the Company. Within the Welcome Book, in fact, there are the most important information in this field, such as the rules of conduct in the Company, the values described in the code of ethics, the procedures for safety and prevention, the presentation of the existing certifications and management systems that characterize the path towards sustainability at 360°.

305 employees Company headcount on 31 December 2022

increased compared to 2021, where it was 273.

During the reporting year Sambonet recorded a

hiring turnover of

17%

more than doubled compared to 2021

Outgoing turnover of

in decline with data for 2021.

Sustainability Report 2022

Sambonet’s commitment is twofold:

• Maintain a growth trend

SO THAT THE INCOMING PEOPLE ALWAYS EXCEED THE OUTGOING ONES;

• Reduce the percentage of outgoing people YEAR BY YEAR DEVELOPING TALENT RETENTION ACTIVITIES.

VALUING THE YOUNG GENERATIONS

DIVERSITY: A VALUE FROM THE OUTSET

To complete the total staff, Sambonet has 5 working relationships with workers who are not employees, all interns introduced in collaboration with high schools of the surrounding areas. The internship collaboration is realized with the aim of creating value for local communities: young talents of the territory are given the chance to increase their technical skills, not only at school but also directly on the field, approaching the reality of Sambonet, and, potentially, to find work immediately after graduation*.

Sambonet pays particular attention to diversity in the company and carries out daily the commitment to achieving gender equality in the composition of the staff, which today is made up of 45% of female staff. For the same reason, the company is committed to ensuring female representation even in high-level jobs, in fact 50% of Sambonet executives are female. Moreover, in 2022 Sambonet employees belonging to protected categories are 12 (11 in 2021). The Company takes great care in the integration of this group with other employees, in the protection of their rights and health and safety at the place of work.

OF THE EMPLOYEES IS FEMALE

OF CONTRACTS ARE PERMANENT

FEMALE EXECUTIVES

* Regarding the type of contracts, 96% of the employees are employed with permanent contracts, underlining the Company’s desire to consider and invest in its own people. In addition, the Company hires all its employees in compliance with national and regional regulations. All employees are employed with the C.C.N.L of the Metal-mechanical companies, while for interns, curricular and extra-curricular, specific agreements are made involving the training agency or the certified body.

Sustainability Report 2022

3.1 US

PEOPLE AT THE HEART OF THE COMPANY

Enhancement of personnel TRAINING

Sambonet Paderno Industrie wants to preserve the excellent craftsmanship of which the Company has become a landmark through the years keeping up with technological innovation and emerging industry trends.

For the Company, the fundamental key of its corporate strategy is the development of its employees, indeed it invests in training and in updating the skills of its human capital precisely with this perspective: innovating tradition. From the very first day, a new hired becomes part of the Sambonet Paderno family, being accompanied in a path of professional and personal growth, aimed at retaining talent and encouraging the development of specific skills. Each employee, according to their role and positioning within the Company, is accompanied by training courses that aim at its growth and specialization. Starting from 2021, in the Performance Management activities, the Company included an assessment of the training needs of groups of employees that, starting from the analysis of the performance of the previous year, includes the types of courses to be provided the following year. The mapping is done through collaboration with the managers of each area and is not implemented for each employee, but for working groups (depending on their function). Sambonet also cares about the support of employees who change roles within the Company, designing specific training courses from case to case.

Sustainability Report 2022

The Company guarantees multiple training courses, internally managed for the Hard Skills (for example specific training for the factory workers), instead managed through third-party companies regarding the Soft Skills. The compulsory courses focus on Health and Safety in the company (e.g, first aid, toxic gas licenses, etc.), while the noncompulsory training courses focus on languages, administrative updates, technical courses for the use of specific machinery and effective communication with its stakeholders (course implemented from 2021 mainly addressed to managerial figures). To crown Sambonet’s commitment to the formation of its human capital, there is the intention to implement increasingly structured plans for the evaluation of the effectiveness of the training provided, developing targeted gap analysis and considering employee performance. In this way it will be possible to formalize specific targets for the training of all.

During 2022, Sambonet increased significantly the

hours of training provided (compulsory and not)

8.552

compared to those provided in 2021 (6,973 hours). In particular,

79%

of the scheduled hours are non-compulsory training courses,

to highlight the Company’s sincere interest in educating and keeping its employees always up to date, investing time, resources and capital.

Sustainability Report 2022

3.1 US

PEOPLE AT THE HEART OF THE COMPANY

Performance assessment AND INCENTIVE SYSTEMS

Sambonet Paderno Industrie, to encourage the professional growth of all employees has activated an annual performance assessment mechanism, designed to bring to light virtuous behaviours in the performance of activities/projects and to give the possibility to make defined, clear, shared and measurable the objectives and expectations of each role for the period following the assessment. Moreover, for about 20% of employees there is also an incentive system MBO (Management By Objectives), a method of evaluation of human resources based on the achievement of objectives: currently, in fact, this system is applied to commercial and managerial figures.

Sustainability Report 2022

The Company does not exclude the application of this system to a greater number of employees in the coming years. Finally, Sambonet is proud to share its annual result with all employees, in fact all employees are entitled to an annual award linked to the result achieved by the Company.

Sustainability Report 2022

3.1 US

PEOPLE AT THE HEART OF THE COMPANY

Well-being of People WELFARE INSTRUMENTS Sambonet is grateful and aware of the significant importance that its employees have on the success of the Company and has always been committed to ensuring the wellbeing of the company for all those who are part of it. Over time, in fact, the Company has developed a solid corporate welfare structure to ensure satisfaction and create a sense of belonging. The designed welfare structure offers the following benefits to staff: • Adhesion to the Metasalute Supplementary Health Care Fund, a form of contribution provided by the CCNL of category (metalworking);

Sustainability Report 2022

• Conventions of various kinds through agreements undertaken with nearby shops / premises and specific agreements for certain employees; • Extra discounts for purchases at the company outlet; • Access to a corporate gym; • Access to the company restaurant; • Access to free drinking water in the Novara plant; • Flexible working time through the offer of part-time contract types that meet the needs of some employees. During 2022, 12 employees had a part-time contract. The Company has provided, through individual agreements, the application of smartwoking to its employees.

In addition to providing preventive measures for accidents and illnesses in the workplace, the company is proactively working to offer employees with opportunities to improve their individual and family status, from conventions for the purchase of goods and services to facilities for work from home and reconciliation between professional and personal life.

All the initiatives promoted by Sambonet are aimed at achieving a balanced lifestyle with respect to nutrition, sports and emotional context and thus ensure the well-being of its employees.

Sustainability Report 2022

3.1 US

PEOPLE AT THE HEART OF THE COMPANY

The Art

BEYOND THE PRODUCT To underline the strong interest of Sambonet towards "beauty", there are not only the countless collaborations with international artists, but also the furniture of the same venue. Sambonet is committed to creating for its employees a working environment attentive to artistic detail, to create a comfortable atmosphere that positively affects the well-being and sense of belonging to the corporate culture of employees. Therefore, the property has furnished the company with the aim of creating a welcoming and inspiring place for all employees and at the same time, promoting the Italian craftsmanship of which the company itself is a landmark. The Novara work location boasts a collection of about 30 works of art, paintings and sculptures of interiors and exteriors, mainly made by Italian artists still alive.

Sustainability Report 2022

La nave con l'albero di pesci, Granaroli Claudio

Volo, Antonio Paradiso

wood portraits, Pierlugi e Franco Coppo, Orticanoodles

MU – 141 La Vita Infinita, Kengiro Azuma,

Sustainability Report 2022

Alfondo Borghi, 69 x 200 cm

Mauro Staccioli (1937-2018) materiale cemento e ferro dimensioni Ø m 2,4 - spessore cm 50

Sustainability Report 2022

3.1 US

PEOPLE AT THE HEART OF THE COMPANY

Respect and inclusion

THE FOUNDATIONS OF BEING TOGETHER Sambonet adopts an integrated system of management and development of human resources that offers all its employees equal opportunities and professional development, based on merit criteria, avoiding any type of discrimination (gender, racial, sexual, etc.).

The Company not only leads personnel management (e.g, hiring, promotions, etc.) avoiding any form of discrimination, but is also committed to promoting an inclusive working environment by banning, within the Code of Ethics, any behavior of verbal, physical or psychological violence by an employee to any individual inside or outside the Company. In 2022, the Company’s commitment to these issues resulted in zero discriminations. In particular, with respect to the subject of remuneration, the Company is working to eliminate the gender pay gap (pay gap between male and female employees in the same role).

Sustainability Report 2022

This is how Sambonet promotes an inclusive work environment: countering all forms of discrimination in company policies and practices and ensuring psycho-physical well-being and employees satisfaction.

Protection of Workers HEALTH AND SAFETY

Sambonet cares about the health and safety of its personnel and for this reason seeks to create safe and comfortable working environments, spreading the "culture of prevention" accompanied by concrete measures, formal procedures, monitoring systems, and periodic training.

As proof of the Company’s attention to ensuring safe working conditions, in 2022 there were 5 cases of injuries and occupational diseases related to the workplace. The Company believes that security, by its nature, is a "status" that implies the participation of all resources and is attainable through acknowledge of risks and their prevention and therefore it develops through:

• DISSEMINATION OF CULTURE OF PREVENTION. • THE ONGOING RISK ASSESSMENT BY THOSE WHO WORK "IN THE FIELD". • DETECTING THE TREND OF THE ELEMENTS OF DISTRESS. • THE RISK ANALYSIS.

The safety management system is based on following pillars:

• EMPLOYEES TRAINING AND INVOLVEMENT;

• ASSESSMENT AND RISK MANAGEMENT;

• MONITORING AND MANAGEMENT OF ACCIDENTS.

Sustainability Report 2022

3.1 US

PEOPLE AT THE HEART OF THE COMPANY

EMPLOYEES TRAINING AND INVOLVEMENT Sambonet focuses on the widespread awareness among workers of the risks related to work activities as a form of prevention. The Company, to root the sense of awareness in all the staff, promotes countless training and education courses in health and safety, provided by qualified personnel, sometimes internal, sometimes external:

• Compulsory training courses for the entire company population; • First aid courses for competent personnel; • RSPP and RLS refresher courses; • Fire training; • Specific courses on the use of certain machineries.

EVALUATION AND RISK MANAGEMENT The active involvement of employees is an important element in the process of raising employees’ awareness toward health and safety risks. Indeed, Sambonet encourages all the workers to report any situation of danger occurred or that may occur (near miss). For this reason, the Company has implemented the PS009, a specific procedure on internal communication of near miss. This procedure outlines the ways in which it is possible for an employee to make a report: • by special mail; • using the boxes in the canteen and reception; • through its supervisor, SGM, MSW and/or RSPP or ASPP. After the report has been made, the security team in charge reviews the cases and the preventive actions to be taken. Sambonet then prepared the Risk Assessment Document pursuant to Legislative Decree 81/06 and s.m.i., periodically revised and integrated according to the evolution of the business environment. The evaluation methodology was set up without neglecting any relevant aspects and giving order to the information collected, developing the following operational objectives: • Identification of workplace dangers. • Justification of the method and the technical choices adopted for the risk assessment in order to draw up a report, as motivated as possible, concerning machinery, equipment and products; • Monitoring the adequacy of the measures taken; • Establish a priority list if further measures are needed; • To demonstrate that all factors relating to work have been taken into account and this has allowed a valid and reasoned assessment of the measures taken; • Ensure that the measures taken, as a result of the risk assessment, are effectively improving the level of protection of workers. The main categories of risk are related to the machinery used in the technical/production departments and industrial activities. 76

Sustainability Report 2022

MONITORING AND MANAGEMENT OF ACCIDENTS Accident management is supported by written procedures, which comply not only with laws and regulations but also with ISO 45001. The procedures define the roles, responsibilities, actions to be taken to report accidents (both actual and near-miss) by employees and, finally, the activities to be implemented once the report is received: specific investigations with recognition of any noncompliance and corrective and preventive actions. During 2022 there were 5 accidents, and, therefore, the accident frequency index is 2.08, up compared to 2021 where it was zero. In view of the marked improvement the current Company’s priority is to keep the figure close to zero, continuing to provide education, information and training to maintain a good level of awareness of the risks and dangers associated with each task.

Number of employee accidents in 2022 Sustainability Report 2022

3.2 FROM RAW

MATERIALS TO SHIPPING

THE PRODUCTION PROCESS

Sambonet, to preserve the notoriety and success due to the quality and design of the products offered, pays extreme attention during each phase of its value chain: from the conscientious supply of raw materials to be used to the production process oriented towards continuous innovation and the optimization of waste and consumption.

Sustainability Report 2022

Sambonet uses 99.9% metal materials such as stainless steel, aluminium, nickel silver and brass. Materials are carefully selected and the organisation strictly complies with European food safety regulations. The steels used, predominantly AISI 304 and AISI 420, are on the Italian Ministry of Health’s list of authorised substances for articles intended to come into contact with food, and a handheld X-ray analyser is used to precisely determine that their actual composition is correct. All the material used is fully recyclable. This is because steel can be regenerated and recycled indefinitely, reducing the consumption of natural resources. In fact, even the scrap from machining waste is sold back to the supplier of the material, so they can manufacture additional sheet metal that will then be used for production.

Responsible supply

THE VALUE CHAIN The high quality and reliability of the products that distinguish Sambonet are guaranteed, among other things, by the management of the production chain that contributes to the realization of the finished product.

The Company establishes strong, lasting relationships based on mutual trust with its suppliers. To ensure the excellence that has always characterized its products, Sambonet meticulously selects the entities with whom to collaborate, following strict criteria both in the ethical and environmental field.

Sustainability Report 2022

3.2 FROM RAW MATERIALS TO SHIPPING THE PRODUCTION PROCESS

RAW MATERIALS Almost all the raw materials used by the Company are metals (in particular stainless steel, aluminium, nickel silver and brass). The totality of the suppliers is constituted from resellers, of which 76% placed in Italy, while the remaining part coming mainly from Germany, France, Hungary, Turkey, India and U.S.A. To these last ones, Sambonet asks the declaration of absence of "Conflict Minerals1" both in the qualification phase and in the subsequent period, annually, as a guarantee of the responsibility of the entire downstream supply chain of its supply chain.

The list of suppliers, for 2022, is composed of almost

one thousand companies

for a total expense2 of

65,320,000 euros Conflict Minerals are natural resources mined in conflict zones and sold to perpetuate hostilities. Various armies, rebel groups and external parties profit from mining, while contributing to violence and exploitation during wars in these regions. 2 In this context, "total annual expenditure" means how much Sambonet has spent in the course of 2022 towards the totality of the suppliers. The total of suppliers includes the following categories: retailers of raw materials, contractors, suppliers of semi-finished products, consumables, goods and services, packaging and packaging materials. For further details on the expenditure towards suppliers incurred by Sambonet in 2022, refer to the GRI 204-1 performance indicator Proportion of expenditure to local suppliers -Table No. 19. 1

Sustainability Report 2022

SEMI-FINISHED PRODUCTS AND COMPONENTS The company buys semi-finished products and components that, subsequently, through techniques and maximum experience, are reworked or, in the case of components, assembled to the body of the product.

CONTRACTORS Sambonet relies on third parties for processes that require specific technical skills, such as surfaces finishing treatments or heat treatments. The Company, committed to enhancing its territory, collaborates with local contractors, located in the province of Verbano Cusio Ossola or in the Po Valley. This brings out an attention from the company to favor, where possible and preferable, relationships with suppliers located near the plant and the operating area, for better organizational capacity, to avoid emissions due to unnecessary movements and to contribute to the economic support of the territory.

Per Sambonet Paderno la sensibilizzazione dell’intera filiera alle tematiche ESG è una priorità. Infatti, la società, forte di un sistema di gestione integrato per la qualità, l’ambiente, l’energia, la responsabilità sociale e la sicurezza, desidera che anche i suoi collaboratori si attivino in tal senso. Con lo scopo di responsabilizzare l’intera filiera, la Società ha introdotto la così detta “Qualified Suppliers List”, una lista stilata sulla base dei responsi ad un questionario di valutazione a cui vengono sottoposti i fornitori.

Sustainability Report 2022

3.2 FROM RAW MATERIALS TO SHIPPING THE PRODUCTION PROCESS

THE CODE OF CONDUCT FOR PRODUCERS AND SUPPLIERS

Sambonet, as a socially engaged organization, feels the responsibility to develop a business model that allows it to transmit its values through the production chains: for this reason, since 2015 it has implemented the Code of Conduct for manufacturers and suppliers. The Code includes principles and standards for the correct development of relations between the Group and its suppliers and has been formulated through three fundamental criteria:

• ALL OPERATIONS MANAGED BY THE GROUP AND ITS EMPLOYEES MUST BE DEVELOPED FROM AN ETHICAL AND RESPONSIBLE PERSPECTIVE. • ALL PEOPLE WHO HAVE, DIRECTLY OR INDIRECTLY, ANY KIND OF EMPLOYMENT, ECONOMIC, SOCIAL OR INDUSTRIAL RELATIONSHIP WITH THE GROUP MUST BE TREATED IN A FAIR AND HONOURABLE MANNER. • THE DEVELOPMENT OF THE GROUP’S ACTIVITIES MUST BE CARRIED OUT IN THE MOST ENVIRONMENTALLY FRIENDLY MANNER. The aim of this document is to raise awareness of these interlocutors on purely ethical, social and environmental issues, so as to ensure, apart from quality, reliability and safety of products processed and distributed on the markets, the protection of the environment and health, compliance with ISO standards, a remuneration that guarantees a dignified lifestyle, and finally, fairness in business activities.

Sustainability Report 2022

The productive heart

FOCUS ON THE PRODUCTION PROCESS Once arrived, the raw material is stored in the warehouse and, subsequently, prepared for use in production processes. The process to produce an article is composed of multiple phases whose nature and sequence varies significantly according to the final product (pots vs cutlery vs tableware...). Once finished with the final cleaning, an object can be subjected to further processes such as silvering and the galvanic gilding or PVD, before being assembled/packaged.

ARRIVAL

RAW MATERIAL

STORAGE

RAW MATERIAL

PREPARATION MATERIAL

LAVORAZIONI MECCANICHE CUTLERY COOKWARE POTTERY

CLEANING WASHING TESTING SPECIAL FINISHES COATINGS

(PVD-SILVERING-GILDING)

TESTING PACKAGING STORAGE SHIPMENT

Sustainability Report 2022

3.2 FROM RAW MATERIALS TO SHIPPING THE PRODUCTION PROCESS

A visionary approach to production technology has always been close to the heart of the company. Over the years, Sambonet has constantly invested in new technologies and kept all its machinery running at a high level of efficiency, as well as making particularly large investments in Industry 4.0 in recent times. The company has always made decisions that put efficiency alongside the sustainability of internal processes. Profoundly artisanal processes, which remain relatively untouched by the technological boom of the 21st century, have been improved and made sustainable through investments that do not affect the method of operation. For example, torch welding is a manual operation dating back to antiquity that is still used today at Sambonet for the production of fine tableware and coffee pots. For more than a decade it has used water electrolysis technology to produce hydrogen gas (and oxygen) to feed the flame, and has stopped using the acetylene cylinder altogether, since it not only presented a risk factor from pressurised gas, but also released oxidation products such as carbon dioxide (CO2). In contrast,

the hydrogen flame reacts with oxygen in the air and turns into water vapour, closing a sustainable circle with zero carbon dioxide emissions. In 2022, Sambonet committed considerable resources (both human and economic) to setting up numerous innovative and sustainable processes, linking everything to a heavily computerised production facility. Sambonet has invested more than € 2,500,000 to upgrade traditional processes, automating and streamlining the production of cutlery, cookware and tableware, with the introduction of both new, fully automated lines and collaborative robots (co-bots) on established lines. Introduced new technologies to streamline production efficiency - laser cutting, which minimises scrap, and therefore waste, of raw material and obtains material in specific shapes to avoid additional production steps - as well as to boost production capacity - a new PVD machine and a new CNC lathe. Invested in new processes, never before performed in the in-house production chain, experimenting with the development of new products and upgrading the professional skills of the people involved - the new CNC press brake or the new 3D laser.

Sustainability Report 2022

MAIN MATERIALS USED IN 20224

Raw materials STAINLESS STEEL

908 TON ALUMINIUM

210 TON ALPACA

6 TON BRASS

8 TON

Auxiliary products 226 TON

Packaging PAPER

136 TON WOOD

74 TON PLASTIC

93 TON 4 For more information on the nature of materials (renewable/ non-renewable) see Table 17 on GRI 301-1 "Total consumption of raw materials".

Sustainability Report 2022

3.3 HIGHER

PRODUCTIVITY, LOWER ENVIRONMENTAL IMPACT NATURAL RESOURCES THROUGHOUT THE PROCESS

Sambonet has always been committed to reducing environmental impacts and promoting process efficiency: the entire plant is designed for the optimization of water and energy consumption and over the years the investments on the plant have allowed to optimize waste management too and mitigate emissions into the atmosphere. The company constantly monitors not only the quantity of withdrawals and discharges, through meters installed in 2019, but also - and more importantly - the quality of discharges. To this end, the company runs daily tests on discharges to analyse the levels of nickel and total cyanides; these activities are carried out by Sambonet’s in-house laboratory, AsecLAb, which in 2013 was accredited as a test laboratory in accordance with UNI EN ISO 17025. With this in mind, the Company strives to implement a long-term planning strategy with investments and projects that share the common goal of systematically reducing the Company’s carbon footprint.

Sustainability Report 2022

PRODUCTIVITY, 3.3 HIGHER LOWER ENVIRONMENTAL IMPACT NATURAL RESOURCES THROUGHOUT THE PROCESS

Energy

HE USE OF ENERGY RESOURCES THROUGHOUT THE PRODUCTION PROCESS Sambonet is aware of the fundamental importance that careful energy management has both internally and for the community and the environment. For several years, in fact, having an integrated policy that responds to ISO 500001 certified management systems, it annually implements monitoring activities such as: • Energy analysis carried out by the Energy Team Team; • Energy Diagnosis carried out by third parties; • Punctual systems for monitoring energy consumption through meters also installed on the various production lines; • Calculation of specific KPIs in the field of energy performance. The set of these monitoring actions allows the Company to identify the most significant areas of energy consumption, possible inefficiencies or problems, which cause for example losses and general malfunctions, and opportunities to improve performance in order to define objectives, targets and action plans.

Sustainability Report 2022

GREEN ENERGY. Invest to improve

This year we installed a new photovoltaic system on the facility’s roof. More than 3,000 solar panels on an area of 6,000 m2. The system is capable of generating 1,350,000 kWh annually, equivalent to the average annual consumption of 500 households. This way, our production facility covers 30% of our annual energy needs and significantly reduces the carbon emissions into the environment: the equivalent of planting 7,500 trees in just five years. A small but significant contribution for our planet. An additional extension will be up and running by 2023, bringing the system to a total of more than 5000 solar panels, and an installed capacity of 2 MW. Each year, energy production will cover the equivalent needs of more than 800 households.

USE OF

ENERGY SOURCES BY SAMBONET

Natural Gas Sambonet uses natural gas for heating the plant and the warehouse on the one hand, and for the operation of washing machines located in the various production departments on the other, in this case, in fact, methane is necessary for heating the solutions to 50 and 60 degrees and for drying the pieces, as well as to feed the furnace for welding some products.

Electrical Energy The Company uses electricity mainly to power its production processes and to supply energy offices. The Company believes in renewable energy and has shown this in the choice of electricity suppliers. Since 2014 Sambonet uses electricity 100% covered by certificates of Guarantees of Origin.

Diesel The company uses Diesel fuel exclusively for the movement of a limited fleet of vehicles. Instead, it doesn’t have heavy vehicles because the logistics is entrusted to a network of couriers. IN PARTICULAR, THE FLEET OF SAMBONETS IS STRUCTURED IN THIS WAY:

9 vehicles

for business use

3 trucks

14 vehicles

assigned to employees

Sustainability Report 2022

PRODUCTIVITY, 3.3 HIGHER LOWER ENVIRONMENTAL IMPACT NATURAL RESOURCES THROUGHOUT THE PROCESS

In 2022 Sambonet recorded, overall,

energy consumption, for production activities,

Electric Energy

4.419 MWh

15.908 GJ

equal to

27,936 GJ (7,759 MWh)

with an increase of 3,4% compared to the previous year in which consumption was 27,029 GJ (7,508 MWh).

More specifically, most consumption consists of the use of electricity, which amounted to 15,908 GJ (4,419 MWh) in 2021, while natural gas consumption amounted to 282,560 Sm3 in 2022. In addition to the above consumption, and referring to production activities, should be considered the consumption of the car fleet whose consumption was recorded for Diesel 22.429 l in 2022 (23.972 l in 2021). The year-on-year decrease in consumption testifies to the measures taken to optimise and stabilise energy consumption.

Sustainability Report 2022

Natural Gas

282.564 Sm3

11.222 GJ

Diesel

22.429 l 806 GJ

ENERGY PERFORMANCE INDICATORS

Energy intensity (Gas Methane)

2022

0,04

2021

0,06 To improve and make the Company more efficient from an energy point of view, Sambonet has invested in energy efficiency activities over the years through, for example: • Intelligent lighting systems that provide sensors for automatic adjustment compared to the natural light in the environment; • Energy saving measure such as the prohibition to turn on the lights in the "daytime" area from 23:00 until 6:00; • Replacement of machinery or parts of the same that led to waste or poor efficiency; • Energy consumption monitoring system thanks to the installation of meters on all production lines in a uniform manner, to ensure completeness in monitoring. One of the additional goals on which Sambonet works is to improve environmental culture with systematic education, information and training, in order to increase the level of awareness of hazards and risks, and knowledge of techniques for the prevention of environmental problems, correct application of laws and regulations.

Energy intensity (Electric Energy)

2022

2021

0,57 0,88

The energy intensity indicators were calculated as the ratio between energy resource and pieces produced during the year 2022 (7.781.855 pcs) and 2020 (4.657.199 pcs). The indicators show that between 2021 and 2022 there was a decrease in energy intensity per piece, showing how the energy efficiency actions implemented by the company are important. In particular, these indicators show the good job of industrialization Sambonet has done managing to optimize the cycle of use of the machines with a reprogramming of processes and an increase in employee turnover. Sustainability Report 2022

PRODUCTIVITY, 3.3 HIGHER LOWER ENVIRONMENTAL IMPACT NATURAL RESOURCES THROUGHOUT THE PROCESS

Air

MONITORING OF ATMOSPHERIC EMISSIONS Sambonet Paderno Industrie has chosen technological solutions that optimize the quality and quantity of emissions into the atmosphere;

the emissions are low air pollution and are authorized in compliance with the emission limits and requirements indicated, for the type of processing carried out, in the D.D. of the Piedmont Region n. 145 of 2 May 2011 and in accordance with the current national legislation on environmental protection (Legislative Decree 152/06, Environmental Code). For Sambonet, the commitment to this important issue translates not only into the monitoring of direct and indirect emissions of GHG, but also in the monitoring of further significant emissions that some production plants produce mainly in the departments of: • mechanical production; • galvanic. In this regard, the Sambonet plant is in possession of a Single Environmental Authorization (SEA) relating to emissions into the atmosphere and water discharges.. For Sambonet, self-monitoring analyses are not a mere fulfilment prescribed by the single environmental authorisation (Autorizzazione Unica Ambientale - AUA), but a useful process for periodically monitoring the environmental impact of the production process, with a view to analysing risks and opportunities for the continuous improvement of environmental performance.

Sustainability Report 2022

Direct GHG emissions Scope 1

592 tCO2

Indirect GHG emissions Scope 2 (market based)

Indirect GHG emissions Scope 2 (location based)

1,148 tCO2

2022 Direct emissions (scope 1) corresponds to the amount of CO2 stored from about 3,811 trees in a year5. The amount of CO2 stored by a tree is very variable and depends on the species, size and many other parameters. In this case reference was made to a turkey oak tree, considered excellent as CO2 storage, equal to 155 kg/year (ref. Calculation of the carbon footprint for the reduction of emissions by planting - Polytec Technology Srl).

Water

SUSTAINABLE MANAGEMENT OF WATER RESOURCES Water is of crucial importance for the planet and its ecosystems, as well as for humans. At the same time, water is at the heart of Sambonet Paderno’s production processes. Sambonet is aware of the value of water and is committed to using it in the most rational and ecological way possible. The water withdrawal takes place mainly through two wells owned by Sambonet, authorized for industrial use for water supply and whose total capacity is 46 liters/second, and for a residual part, through the aqueduct of the Municipality of Casalino. Sambonet can also boast a purification system, which allows, in part, the recirculation of water, thus contributing to the overall reduction of water withdrawal.

WATER WITHDRAWAL AND DISCHARGE

143 thousand m3 of water withdrawn in 2022 (113 in 2021)

83 thousand m3 of water discharged in 2022 (83 in 2021)

The company uses the water resource for civil uses, but especially for industrial uses during some specific stages of the production process. In particular: • For silver plating treatments; • During the extraction and pickling phases, where the pieces of pottery and cookware are treated in water with nitric and sulphuric acid; • During the moulding of the pottery through water-jet plants that allow the product to take on rounded shapes; • In the final washing phases where the products through treatment tanks and washing tunnels are cleaned for several years with aqueous solutions of detergents, and no longer with chemical solvents, to minimize water pollution.

Sustainability Report 2022

PRODUCTIVITY, 3.3 HIGHER LOWER ENVIRONMENTAL IMPACT NATURAL RESOURCES THROUGHOUT THE PROCESS

After the chemical-physical treatment of industrial water, and clarification of domestic water, the wastewater is sent to the Busca irrigation channel. The discharge activity is conducted by Sambonet in accordance with the Legislative Decree 152/06 as well as the provisions contained within the SEA that authorizes Sambonet to discharge into surface water. The chemical-physical treatments performed by a purifier owned by Sambonet, allow to purify the water through operations such as oxidation of cyanides, reduction of organic substances and metals, sand filtration to ensure the quality and compliance with all the parameters required by the above-mentioned provisions.

Compared to 2021, there was an overall increase in withdrawal and consequently in discharge in 2022. The change is plausibly linked to the introduction of additional washing phases relating to the special finishing and coating departments.

Sustainability Report 2022

RECIRCULATION OF WASHING WATER Inside the Sambonet Paderno plant, there are five washing machines located in different departments. The operation of these systems fully corresponds to the Company’s philosophy of using water as a resource not to be squandered, with the aim of achieving the lowest possible consumption. For this reason, the washing tunnels provide rinsing ramps with adjustable and measurable flow through flow meters; the power supply of each ramp is controlled by a level switch placed in the tank of that washing section and if necessary, a water flow from the next section comes into operation. In this way, the solutions of the cleaner rinsing tanks feed the previous rinses thus providing a mechanism of "re-use".

Waste

SUSTAINABLE MANAGEMENT AND DISPOSAL Managing waste responsibly is one of the main prerogatives of Sambonet. The commitment of the Company is a constant and continuous improvement of waste management and technologies used during production, optimizing the use of raw materials and minimizing waste. In addition to preventive initiatives to reduce waste, in the production site is strongly promoted waste recycling of paper and cardboard, plastic, aluminium, nickel silver, steel, wood, copper, iron, toner, neon tubes, trying to constantly motivate the collaborators.

WASTE FOR DISPOSAL (t) 2022

11,7

In 2022, civil and industrial activities led to the production of a total of 494 tonnes of waste, of which 77% was non-hazardous (they do not have any of the hazardous characteristics pursuant to Annex III of Directive 91/689/EEC). The composition of the waste is mainly of materials derived from production processes such as metals, cardboard packaging and, to a lesser extent, sludge produced by washing. All waste (both those destined for landfill and those destined for recovery) is managed externally through local companies specialized on waste treatment. Most of the waste (about 68% in the year 2022) is destined for recovery. Paper, cardboard and metals are completely managed through recovery.

WASTE FOR RECOVERY (t) 2022

2,9 10,6 Packages

Abrasive material

6,1

Coal/sand

Oils/emulsions

30,4 Sludge

0,6

225,1

Electronic materials

Metals

93,4 Liquids/ washing water

6,7

Other

104,6 Paper and cardboard

1,5

Other

Sustainability Report 2022

4. 96

Sustainability Report 2022

RES PON SIBI LITY PRODUCT RESPONSIBILITY AND CUSTOMER ORIENTATION 4.1

At the centre of our attention The Product

4.2

Our customers Their satisfaction

106

Sustainability Report 2022

4.1 AT THE CENTRE OF OUR ATTENTION THE PRODUCT

The dynamic balance between tradition, craftsmanship and innovation is the basis of the Company’s work. The idea of modernity of Sambonet Paderno in the table and kitchen is born from the awareness of its history and its excellence, to be preserved, but also to be reinterpreted in the light of contemporary trends and customer needs.

Create integrated solutions OF QUALITY, DESIGN AND FUNCTIONALITY.

ANTICIPATE AND SATISFY THE NEEDS OF OUR CUSTOMERS, in their professional life or in their families, through a portfolio of distinctive but complementary products.

Pursue an ETHICAL AND SUSTAINABLE PATH OF CONTINUOUS INNOVATION that is born from our tradition, interprets contemporary trends and creates new ones.

Sambonet Paderno is the promoter of these principles and acts daily so that they are pursued and valued in the culture of the Company.

Sustainability Report 2022

PRODUCT

quality and safety The table products and furnishings made by Sambonet Paderno are recognized and appreciated for the high quality that distinguishes them. The maintenance of the high-quality standards that characterize this reality is based on a great commitment on the part of the Company that translates into careful attention during all stages of product processing, formalized policies, efficient quality monitoring systems and maximum attention to the customer and his needs. In the field of food safety, Sambonet can boast an SGSA certified by an external body EN ISO 22000:2018 since 2013. Periodically, the Management is subject to internal audits and external audits that certify the maintenance and adaptation of the production process to meet the requirements of the standard.

Sustainability Report 2022

4.1

AL CENTRO DELLA NOSTRA ATTENZIONE IL PRODOTTO

The certified Quality Management System allows the company to act in compliance with the strictest production quality criteria; it clearly and systematically sets out the steps to be followed so that the plant’s production complies with internal and external regulations and is in line with the agreements made with customers. Products are controlled at the Orfengo production site, applying to all processes and company activities that impact product quality and customer satisfaction. Quality Control staff and the Production function, as well as Subcontractors, conduct these checks when required. A Quality Control Plan is prepared for each process, in which every check to be carried out, its frequency, the measuring instruments to be used and the established acceptance criteria are defined. In addition, to ensure the compliance of its products, the company has set up a system of monitoring, measurement, analysis and improvement of processes and the Quality Management System.

The quality and safety of Sambonet Paderno products cannot be separated from compliance with the applicable legislative and regulatory requirements for food safety. In this context, in fact, the company has implemented over the years an efficient Food Safety Management System (FSMS) for all items that come into contact with food. In general, every product of Sambonet Paderno Industrie is safe for food contact thanks to the compliance with the quality requirements traced along the entire supply chain: from the application of HACCP to health and hygiene regulations established by international standards.

Since 2004, the products of Sambonet Paderno also boast the NSF certification (National Sanitation Foundation) for food safety, ensuring that the product come into contact with food without any risk to health.

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In the area of food safety, Sambonet’s Integrated Management System for Quality, Environment and Safety has been EN ISO 22000:2018 certified by an external body since 2013. The Management System undergoes regular internal checks and external audits to certify that its production process continues to comply with the requirements of the standard.

Sambonet Paderno Industrie has always invested in qualified personnel, technology and equipment, creating an internal laboratory to carry out direct analysis on materials and objects that come into contact with food. Since 2013, thanks to the Accredia certified laboratory, ASEC Lab -AlimentarySecurity Control, the company can guarantee the suitability and safety of each item placed on the market, whether it is produced directly or distributed. In addition, it is autonomous for issuing declarations of conformity on steel, aluminium, porcelain, glass, plastic materials and dyes, internationally recognized.

12 ACCREDITED

TESTS

The laboratory is equipped with a PerkinElmer CLARUS 680 GC high-performance, dualchannel gas chromatograph coupled with a PerkinElmer CLARUS 5988MJ mass spectrometer complete with a Purge & Trap Atomx sample prep system, a PerkinElmer OPTIMA 8000 ICP-OES plasma source optical emission spectrometer, a PerkinElmer Lambda 25 UV/Vis spectrophotometer, and all the basic analytical instruments.

1,000

MORE THAN ANALYSES PER YEAR

More specifically, the laboratory performs the following tests: TYPE OF SAMPLE

TESTS PERFORMED

STEEL

Overall migration Specific migration of nickel, chromium and manganese

GLASS

Overall migration Specific migration of lead

CERAMIC

Specific migration of lead and cadmium

PLASTIC

Overall migration Specific migration of metals Migration of dyes

METALLICS

Specific migration of metals

SILICONE

Overall migration* Migration of dyes*

WASTEWATER

Determination of metals Determination of chemical and physical parameters Determination of organohalogen compounds

GROUNDWATER

Determination of metals* Determination of chemical and physical parameters Determination of organohalogen compounds

* Non-accredited tests

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“Every story is a project: the signs of nature with its perfect balances, the simple elegance of a leaf, the generosity of the earth that lays out a banquet every day. And we are the guests of honour”.

SUSTAINABILITY ALSO LIES IN THE USE OF THE PRODUCT In its latest cutlery project, Sambonet expresses its vision of how today’s table needs a rethink of time and balance, starting with the objects that adorn it. Starting from its design inspired by foliage patterns, with a nod to the elegant and romantic 1950s, this cutlery collection savours once again the pleasure of pieces with a striking, distinctive design that is also durable and timeless. A style-driven and at the same time contemporary interpretation of the fundamental concept of sustainability that makes a product – cutlery included – destined to stand the test of time, and sustainable as such. Sambonet is also reviving the simple, good habits of the past of reusing everything that is beautiful, welldesigned and of unquestionable quality, by proposing the collection in an exclusive reusable box, made entirely of wood and paper, designed to hold photographs or small objects, like a refined, original and contemporary jewellery box. An invitation to repurpose the box for a new, creative and constructive use. An apparently random interweaving of natural elements, leaves, abstract signs, overlays and geometric shapes. It is only by combining fork, spoon and knife that the asymmetrical pattern of Jungle created by Italian fashion designer Gianni Cinti comes together. On the same footing as people whose relationships ebb and flow around the table, this cutlery takes on new meaning when the pieces are joined as a setting, to distinguish the table and make it unique. Hence Jungle turns into a metaphor of the meeting as an occasion to “slow down” and savour every moment of sharing, and an invitation to reappropriate our time for a balanced life, even at the table. Sustainability Report 2022

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4.1

AT THE CENTRE OF OUR ATTENTION THE PRODUCT

PRODUCT

innovation and sustainability Sambonet products are unique thanks to the expertise of the artisans who, in addition to ensuring the accuracy and uniqueness of each creation, using innovative techniques guarantee very high precision at every stage of the manufacturing process.

The know-how capital of which Sambonet is in possession today, has distant origins that reside in the founders of the two souls of the company. However, the Company has continued to invest over the years, using state-of-the-art processes and technologies, the use of which has increased the accuracy of metalworking, reduced waste and increased energy efficiency, helping to reduce environmental impact.

Innovation, which is a transversal concept within the company, is promoted both by the Technical Office and by the various business units. The innovative drive and the consequent optimization of the company’s products and production processes are generated by several factors, including market demands, the desire to diversify from other companies in the sector and the strong consideration of preferences in the field of sustainability and innovation of customers.

Over the years, the company has registered several know-hows related to production processes.

As proof of the importance that the company has for the theme of innovation and product sustainability, Sambonet dedicates a large part of its annual expenditure to Research and Development. Only in 2022, the expenditure related to Industry 4.0 was almost 2.5 million euros; this considerable investment aims to ensure the use of production techniques at the forefront, ensuring the optimal performance of machinery, in terms of precision, effectiveness and efficiency, and creating ecosustainable industrial processes.

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Among these Sambonet can boast some processes of galvanic silvering as well as the PVD coating process and the special vintage, antique and diamond finishes, which in addition to being an expression of the highest quality, add to the cutlery a texture of design and exclusivity for customers.

2.5million FOR INDUSTRY 4.0

The PVD

PHYSICAL VAPOUR DEPOSITION The PVD coating consists of a highly innovative treatment that gives the objects precious colors and trendy shades. It is used for the deposition of thin films on the surfaces of objects to be covered (for example, knives, other cutlery or pottery). PVD coatings are distinguished from common surface finishing methods since they guarantee a higher quality, non-toxic and high resistance to the aggressive action of external agents. The innovative and sustainable aspect of this technique also lies in encouraging the reduction of the use of chemical substances such as cyanides and acid solutions, which are more used in galvanic processes. The PVD finish also allows a better environmental performance.

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OUR 4.2 CUSTOMERS THEIR SATISFACTION

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Ensuring full customer satisfaction is for Sambonet Paderno an absolute and essential priority, together with the drive towards innovation and sustainability. For this reason, it is committed daily to offer its consumers quality products and to ensure compliance with the methods and delivery times. For Sambonet it is essential to establish a consolidated and lasting relationship of trust with customers. For a continuous strengthening of the same, the company has implemented over time instruments and channels of measurement of customer satisfaction. Thanks to the Quality Management System, formalized and certified for about 10 years, Sambonet annually measures some KPIs expression of quality and customer satisfaction; the data that are collected are later

analyzed, to assess the effectiveness of the system but above all to identify the areas on which to implement improvement actions and set increasingly ambitious and challenging goals. The data are being analyzed on annual basis and relate, for example, to information about customer return (satisfaction, returns/complaints, etc.), product monitoring and process monitoring.

Quality and customer satisfaction in numbers*

1.24

IMPACT OF RETURNS ON TOTAL TURNOVER

0.30

DEFECTIVENESS ON THE TOTAL PIECES SHIPPED

* The performance, which refers to the year 2022, is in line with previous years.

A further fundamental tool for monitoring customer and consumer satisfaction are questionnaires given to customers to know them better and receive feedback on their opinion and experience. In the two-year period 2021-2022, it emerged that for the main customers of Sambonet - Resellers and Retailers - the quality and service offer

are excellent and that for the final consumer sustainability is a relevant issue. Therefore, Sambonet’s consolidated commitment to sustainable issues is also supported by the interest shown by its consumers.

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OUR 4.2 CUSTOMERS THEIR SATISFACTION

Consumers and the market FOR A FULL AWARENESS

Sambonet’s interest in understanding the expectations and purchasing behaviour of its consumers is also reflected in the market surveys carried out - in collaboration with a renowned research and market study organisation - covering the company’s different product categories. In 2022, the company focused on the professional public, outlining the priorities, needs and expectations of this key target group in the tabletop sector. The results of this analysis allow the Company to better address its strategic decisions on products, to ensure they are increasingly in line with customer expectations.

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NON-INDUSTRY PARTICIPATION For the second year running, Sambonet participated in the Salone del Mobile in Milan, the world’s leading trade fair covering the entire furniture sector and a point of reference for architects and interior designers. This involvement confirms the company’s desire to monitor and boost its presence in the contract sector, an extremely fast-growing channel where the company can grow exponentially.

SECTOR FAIRS Sambonet Paderno is present in 90 countries, mainly in Italy, Germany and the United States. For this reason, the company considers it a priority to establish connections with customers also through participation in the most important Italian and international fairs in the sector. Each event is an opportunity to build an environment in which the novelties and the exhibition suggestions are the protagonists, generating an exchange of ideas and a collaboration with shared goals.

ROADSHOW Sambonet Paderno annually organizes Roadshows - events smaller than fairs organized in suggestive locations. In this way, the company can show its products closely to retailers, reaching them on the territory with intimate and engaging events, presenting the news and exhibition proposals. The impact of this initiative is certainly positive because the events have always been followed by significant commercial orders and an increase in customer loyalty.

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5. 110 Sustainability Report 2022

ATTA CH ME NTS 5.1

Methodological Note

112

5.2

Summary of Performance Indicators

114

5.3

Perimeter table of material topics

127

5.4

GRI Content Index

129

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5.1 METHODOLOGICAL NOTE

This document represents the second Sustainability Report of Sambonet Paderno Industrie (hereinafter "The Company", or "The Firm"), drawn up in accordance with the "GRI Sustainability Reporting Standards" (2021) published by the Global Reporting Initiative (GRI), according to the "In accordance" option. The Company, always committed to sustainability, publishes a Report that talks about its performance in this field for 11 years, but, since 2021, has decided to crown the consolidated commitment over time through a Report that outlines the main results in the economic, social and achievement by responding to one of the international standards of the moment. The document was drawn up voluntarily and responds to the Company’s desire to achieve an increasingly high level of transparency towards its stakeholders regarding their sustainability performance. As already mentioned, the information and data reported refer to the year 2022 (from 1 January 2022 to 31 December 2022). In order to allow the comparability of the data over time and to evaluate the development of the Company’s activities, a comparison with the previous year has been proposed where available. It is important to remember that following the demands of the GRI indicators for the first year, it is possible that different calculation methodologies have been used for some data already reported in previous sustainability reports, and that consequently, changes can be observed compared

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to the same data for the years before 2022. The indicators to be reported and the related content has been established on the basis of the results of the materiality analysis conducted involving some of the internal and external stakeholders in an assessment of the relevance of the environmental, economic and social aspects significant to the sector, has made it possible to identify the material issues for Sambonet Paderno and Stakeholders on which the document is focused. For further information, in the appendix to the Report you can consult the GRI Content Index where the GRI indicators associated with each material theme with corresponding nomenclature are listed. The Sustainability Report was drawn up using the reporting approach described by GRI Universal 3 (2021) for the identification of material issues, which provides an understanding of the Company’s reference context, the identification of potential and actual impacts and their examination. In fact, the information related to the identified material issues and the mapped Stakeholders, allow to report transparently the impacts of the Company in the context of its sustainability path. The document, finally, reflects the principles of GRI Standard 1 (2021) of accuracy, balance, clarity, comparability, completeness, context of sustainability, timeliness and verifiability.

The perimeter of the data reported in this document coincides with that of the Financial Statements of the Company. The frequency of publication of the Sustainability Report will be annual. Furthermore, to ensure the reliability of the data, the use of estimates which, if available, are based on the best available and appropriately reported methodologies has been limited as much as possible. The 2022 Sustainability Report was not verified by an independent third party, however it was submitted for approval by the Sole Administrator of Sambonet Paderno on 29/09/2022. This document has also been made public on the Company’s website, available at the following address: https://www.sambonet.com/it-it/ sustainability.html. For any information regarding the Sustainability Report, you can contact the following e-mail address: sostenibilità@sambonet.it

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5.2 SUMMARY OF

PERFORMANCE INDICATORS

CHAPTER 1 SAMBONET, FROM A MECHANICAL FIRM TO A LEADER GROUP AT AN INTERNATIONAL LEVEL

Economic performance GRI 201-1 DIRECT ECONOMIC VALUE GENERATED AND DISTRIBUTED

Table 1 GRI 201-1: Economic value directly generated and distributed by the Company 2022

Amount

Economic value directly generated

89,662,000

66,851,683

Revenues

87,807,000

65,550,392

Other revenues

1,855,000

1,055,550

Interest income

201,815

245,741

Economic value distributed

78,342,531

57,205,173

Distributed to suppliers

61,487,000

43,048,382

Distributed to employees

14,020,000

12,745,112

Distributed to the capital providers

192,442

169,809

Distributed to the Public Administration

2,605,109

1,226,018

Payments to the Local Communities

38,000

15,852

14,155,000

9,646,510

Economic Value Retained

114

2021

Amount

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CHAPTER 3 HOW WE CREATE VALUE.

Sambonet People GRI 2-7 EMPLOYEES4

Table 2 GRI 2-7: Total number of employees by gender (headcount) to 31 December

to 31 December

Gender

2022

2021

Male

169

150

Female

136

123

Total

305

273

Table 3 GRI 2-7: Total number of employees by type of contract and gender (headcount) to 31 December to 31 December 2022 2021 Type of contract M F Total M F

Total

Permanent

150

121

271

145

116

261

Temporary

Total

169

136

305

150

123

273

Table 4 GRI 2-7: Total number of employees by type of job and gender (headcount) to 31 December to 31 December 2022 2021 Full Time / Part Time M F Total M F

Total

Full-time

167

126

293

148

116

264

Part-time

Total

169

136

305

150

123

273

All employees refer to the geographical area "Italy".

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GRI 2-8 WORKERS WHO ARE NOT EMPLOYEES

Table 5 GRI 2-8: Total number of non-employees whose work is controlled by the Group, by type of contract and gender (headcount) 2022 2021 Type of contract M F Totale M F

Totale

External staff

Self-employed

Interim

Interns

Total

GRI 401-1 NEW EMPLOYEE HIRES AND EMPLOYEE TURNOVER

Table 6 GRI 401-1: Incoming employees by age, gender and geographical are 2022 2021 <30 30-50 >50 Total Incoming <30 30-50 >50 Total Incoming turnover % turnover % Male

18%

13%

Female

15%

14%

Total

17%

14%

Incoming turnover %

70%

12%

17%

75%

14%

Table 7 GRI 401-1: Outgoing employees by age group, gender and geographical area 2022 2021 <30 30-50 >50 Total Outgoing <30 30-50 >50 Totale Outgoing turnover % turnover %

116

Male

Female

Total

Incoming turnover %

23%

18%

10%

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Staff development and training GRI 404-1 AVERAGE ANNUAL TRAINING HOURS PER EMPLOYEE

Table 8 GRI 404-1: Hours of training per capita by gender and professional category 2022 2021 M F Total M F

Total

Managers

3.00

13.75

8.38

21.00

14.00

17.50

Executives

58.67

29.20

36.00

36.50

44.67

43.18

Employees

16.79

23.50

21.51

35.29

20.30

24.82

Workmen

30.32

46.32

33.40

29.22

6.04

25.01

Total

27.42

28.81

28.04

30.75

19.20

25.54

Respect and inclusion: the foundation of being together GRI 405-1 DIVERSITY OF GOVERNANCE BODIES AND EMPLOYEES

Table 9 GRI 405-1: Employees by professional category and gender in percentage 2022 2021 M F Total M F

Total

Managers

50%

Executives

23%

77%

18%

82%

Employees

29%

71%

43%

30%

70%

46%

Workmen

81%

19%

51%

82%

18%

48%

Total

55%

45%

100%

55%

45%

100%

Table 10 GRI 405-1: Employees by professional category and age as a percentage <30

2022 30-50 >50 Totale <30

2021 30-50 >50

Managers

50%

Executives

54%

46%

55%

45%

Employees

13%

70%

17%

43%

14%

71%

14%

46%

Workmen

17%

51%

32%

51%

56%

36%

48%

Total

14%

59%

27%

100%

10%

63%

27%

100%

Totale

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Table 11 GRI 405 -1: Employees by gender and age as a percentage <30

2022 30-50 >50 Total <30

2021 30-50 >50

Total

Male

14%

59%

27%

55%

59%

32%

55%

Female

14%

59%

26%

45%

12%

67%

20%

45%

Total

14%

59%

27%

100%

10%

63%

27%

100%

Table 12 GRI 405-1: Employees belonging to protected categories as a percentage

to 31 December

2022 2021 Type of contract M F Total M F

118

Total

Managers

Executives

Employees

Workmen

17%

Total

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Table 13 GRI 405-1: Members of the Board of Directors of the Holding Company Sambonet Paderno by gender and age as a percentage

<30

to 31 December

2022 30-50 >50 Total <30

to 31 December

2021 30-50 >50

Total

Male

100%

Female

Total

100%

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Health protection and safety of workers GRI 403-8 WORKERS COVERED BY AN OCCUPATIONAL HEALTH AND SAFETY MANAGEMENT SYSTEM

Table 14 GRI 403-8: number and percentage of total employees and workers non-employees covered by health and safety management system 2022 2021 Employees Workers Tot % Employees Workers Tot non-employees non-employees

Health and safety management system

305

305 100%

273

277

100%

Health and safety management system subject to internal audit

305

305 100%

273

277

100%

Health and safety management system audited/certified by independent third parties

305

305 100%

273

277

100%

GRI 403-9 WORK-RELATED INJURIES

Table 15 GRI 403-9: Accidents at work and accident rates5 Employees

2022

2021

Number of recordable accidents at work

Number of accidents at work with serious consequences (excluding deaths)

Number of deaths as a result of accidents at work

Hours worked

479.721

433.517

Recordable rate of accidents at work

2.08

Rate of accidents at work with serious consequences

Rate of deaths as a result of accidents at work

2022

2021

Number of recordable accidents at work

Number of accidents at work with serious consequences (excluding deaths)

Number of deaths as a result of accidents at work

Hours worked7

404

2,258

Recordable rate of accidents at work

Rate of accidents at work with serious consequences

Rate of deaths as a result of accidents at work

Workers non-employees

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From raw material to shipment: our production process GRI 204-1 PROPORTION OF SPENDING ON LOCAL SUPPLIERS

Tabella 16 GRI 204-1: Spesa verso i fornitori locali suddivisa per categorie, in €, e percentuale di spesa locale sul totale di spesa verso i fornitori Type of categories 2022 2021 Local Total Local Local Total Local spending (€) spending (€) spending (%) spending (€) spending (€) locale (%) Raw materials

4,326,645

5,447,481

79.4%

2,211,930

2,489,491

88.9%

Goods and services

5,128,401,79

5,259,433

97.5%

2,395,755

2,512,377

95.4%

Packing/wrapping

463,051

717,506

64.5%

229,695

415,290

55.3%

Consumables

779,414

860,914

90.5%

541,492

731,928

80%

Marketing

538,742

669,545

80.5%

541,492

692,505

78.2%

Finished products

5,551,801

50,705,078

10.9%

5,091,718

20,286,297

25.1%

and components

256,893

1,661,602

15.5%

137,889

381,333

36.2%

Totale

17,044,951

65,321,563

26.1%

11,193,789 27,509,225

Semi-finished products 40.7%

The accident index is calculated through the ratio between the number of accidents and the hours worked by employees/external workers, multiplied by 2000 (Source: Sustainability Reporting Guidelines - GRI Standards version, Global Reporting Initiative). Recordable accidents at work are accidents requiring more than three days' absence from work, while accidents with serious consequences are accidents involving more than six months' absence from work. 6 The calculation of hours worked for the employees is made by taking as reference the hours resulting from the paycheck. 7 The calculation of hours worked for outside workers (interns) was made by estimation, multiplying the total number of days worked by 8 working hours per day. 5

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GRI 301-1 MATERIALS USED BY WEIGHT OR VOLUME

Table 17 GRI 301-1: Total consumption of raw materials TYPE OF RAW MATERIAL Raw materials

UDM

2022

2021

Stainless steel 304

745

363

Aluminum

210

102

Stainless steel

163

Brass

Alpaca

Primary

226

199

Gas

m³

10,366 *

437

Paper

136

135

Wood

127

Total materials by weight

1,660

1,088

Of which non-renewable

1,450

826

Of which renewable

210

262

Total materials in volume

m³

10,366

437

Of which non-renewable

m³

10,366

437

Of which renewable

m³

Non-renewable material

Chemicals Non-renewable material

Packaging Non-renewable material Plastic Renewable material

*aumento dovuto a nuova fase preparazione materiale) 122 Sustainability Report 2022

Our commitment to minimization of the emissive impact GRI 302-1 ENERGY CONSUMPTION WITHIN THE ORGANISATION

Table 18 GRI 302-1: Total energy consumption within the organization by energy source, in GJ Energy consumed

UDM

2022

2021

Natural Gas

11,222

11,350

Diesel

806

861

Electricity purchased

15,908

14,818

of which renewable

15,908

14,818

Total

27,936

27,029

GRI 302-3 ENERGY INTENSITY

Table 19 GRI 302-3: Energy intensity indicators by type of energy8 TYPE OF ENERGY Energy intensity indicator N. 1

UDM

2022

2021

Natural Gas Energy intensity indicator N. 2

m3/pz

0.04

0.06

Electricity

kWh/pz

0.57

0.88

GRI 305-1 DIRECT (SCOPE 1) GHG EMISSIONS

Table 20 GRI 305-1: Direct greenhouse gas (GHG) emissions (Scope 1) in gross tonnes of CO2 GHG emissions

UDM

2022

2021

Natural Gas

tCO2

561

567

Diesel

tCO2

Total Scope 1

tCO2

592

598

The reported energy intensity indicators have been obtained by dividing the absolute energy consumption (the numerator) by the organization-specific metric (the denominator). In both cases, the total number of pieces produced during 2022 is used as a numerator, while, as denominator, in the first case the total consumption of natural gas is used, and in the second one that of electricity.

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GRI 305-2 ENERGY INDIRECT (SCOPE 2) GHG EMISSIONS9

Table 21 GRI 305-2: Indirect greenhouse gas emissions (GHG) (Scope 2, calculated according to the location-based approach) in gross tons of CO2 GHG emissions according to the Location-Based approach

UDM

2022

2021

Electricity purchased with certificate of origin

tCO2

1,148

1,069

Total Scope 2 Location based

tCO2

1,148

1,069

Table 22 GRI 305-2: Indirect greenhouse gas emissions (GHG) (Scope 2, calculated according to the market-based approach) in gross tons of CO2 GHG emissions according to the Market-Based approach

UDM

2022

2021

Electricity purchased with certificate of origin

tCO2

Totale Scope 2 Market based

tCO2

Conversion factors

UDM

2022

2021

Fonte

Electricity

GJ/kWh

0.0036

Constant

Natural Gas

GJ/smc

0.040

DEFRA

Natural Gas

smc/mc

1.002

Eni gas and light

Diesel/Gas oil for motor vehicles

GJ/t

42.78

NIR

Diesel/Gas oil for motor vehicles

kg/l

0.84

FIRE

Emission factors

UDM

2022

2021

Source

tCO2/sm3

0.001984

0.001983

Ministry of Environment 21-20

tCO2/t

3.151

Ispra 21-20

EE - Location Based

gCO2/kWh

277.6

259.8

Ispra 21-20

EE - Market Based

gCO2/kWh

466

459

AIB 21-20

Natural Gas Diesel

The reporting standard used (GRI 305: Emissions 2016) provides two different emission calculation approaches for Scope 2: "Location-based" and "Market-based". The "Location-based" approach is based on average emission factors related to energy generation for well-defined geographical boundaries, including local, sub-national or national boundaries. The "Market-based" approach is based on the emissions of GHG emitted from the suppliers of energy from which the organization purchases energy, through a contract

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Sustainable management of water resources GRI 303- 3 WATER WITHDRAWAL

Table 23 GRI 303-3: Total water withdrawal from all areas categories in megaliters divided by types of sources10

2022 All Water areas stressed areas

2021 All Water areas stressed areas

Megaliters

132

105

(1.000 mg/L Total solids dissolved) and underground Megaliters

Total

143

113

Water withdrawal Groundwater

UDM

Third party water resources - 100% fresh water Megaliters

GRI 303-4 WATER DISCHARGE

Table 24 GRI 303-4: Total water discharge in all categories of areas in megaliters divided by types of destination11

UDM

All areas

2022 Water stressed areas

All areas

2021 Water stressed areas

(1.000 mg/L Total solids dissolved)

Megaliters

104

Totale

Megaliters

104

Discharge of water Surface water - 100% fresh water

10 11

Due to the emergency linked to COVID 19, the readings for March and April 2020 are not available. Due to the emergency linked to COVID 19, the readings for March and April 2020 are not available.

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GRI 303- 5 WATER CONSUMPTION

Table 25 GRI 303-5: Total water consumption in all areas categories in megaliters12 UDM

All areas

2022 Water streessed areas

All areas

2021 Water streessed areas

Megaliters

significant impact on water resources

Megaliters

Ground waters

Megaliters

Totale

Megaliters

Water consumption Total consumption of water Change in water storage if it has a

Sustainable waste management GRI 306 WASTE

Table 26 GRI 306-3: Waste generated by the Organization divided by type in tons GRI 306-4: Waste diverted from disposal13 GRI 306-5: Waste directed to disposal14 Waste composition

UDM

2022

2021

Dangerous

113.32

93.67

of which for disposal

113.05

93.13

of which for recovery

0.26

0.54

Not dangerous

380.40

382.63

of which for disposal

43.57

66.36

of which for recovery

336.83

316.27

Total

493.70

476.30

12 Water consumption measures water used by an organization that is no longer usable by the ecosystem or the local community in the reporting period. The water consumption is not subject to monitoring by the Company but is estimated by subtracting the total discharge from the total withdrawal for the reference year. 13 This company waste is classified as category R13 (storage for recovery): it is mainly metals (non-hazardous) and batteries and neon (hazardous). All recovery activities are managed by a third-party organization. 14 This company waste is classified as categories D9 (Chemical Physical Treatment), D13 (Pretreatment of Liquid Waste) and D15 (Preliminary Storage). All disposal activities are managed by a third party outside the organization.

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5.3 PERIMETER TABLE OF MATERIAL TOPICS

The table below lists the material themes identified by Sambonet Paderno Industrie related to the GRI Standards reported. For these issues, in the column "Where the impact occurs" are reported the subjects that can generate an impact on each issue, both internally and externally to the Group. In addition, in the

column "Involvement of the Organization in impacts" is also indicated the role of Sambonet Paderno Industrie in relation to the impact generated with respect to each material issue.

PERIMETER OF THE IMPACT MATERIAL Where the Involvement of the ISSUES GRI STANDARDS impact occurs Organization in impacts Value creation

201 - Economic Group, Suppliers performance

Caused by the Group and related to its activities

Enhancement and wellbeing of people

401 – Employment 404 – Training and education

Group, Employees

Caused by the Group

Corporate Governance

405 – Diversity and equal opportunity

Group

Caused by the Group

Compliance and Risk management

205 – Anti-corruption 206 - Anti-competitive behavior

Group, Suppliers, Employees

Caused by the Group

Workers' health and safety

403 - Occupational Group, Employees health and safety

Diversity, Inclusion and 405 - Diversity and equal Protection of Human Rights opportunity 406 - Nondiscrimination

Group, Employees, Suppliers

Protection of the territory 413 - Local Group, Local and development of local Communities Communities communities

Caused by the Group and related to its activities Caused by the Group and related to its activities Caused by the Group and directly related to its activities

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PERIMETER OF THE IMPACT MATERIAL Where the Involvement of the ISSUES GRI STANDARDS impact occurs Organization in impacts Responsible sourcing

204 - Procurement Group, Suppliers Caused by the Group practices and directly related to its activities Sustainable packaging Quality, sustainability and product safety

301 - Materials

Group

416 - Customer health Group, Suppliers, and safety Customers 301 - Materials Research, development n/a Group, Suppliers, and product and Customers process innovations Customer satisfaction n/a Group, Customers

Caused by the Group Caused by the Group and directly related to its activities Caused by the Group and directly related to its activities Caused by the Group

Energy management 302 – Energy Group, Suppliers, Local Caused by the Group and climate change 305 – Emissions Communities and directly related to its activities Management of water 303 – Water and Group, Suppliers, Local Caused by the Group resources effluents Communities and directly related to its activities Waste management and 306 - Waste Group, Local Caused by the Group circular economy Communities and directly related to its activities

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5.4 GRI CONTENT INDEX

Statement of use

The Sambonet Paderno Industrie Group has reported the information mentioned in the GRI Content Index for the period from 1 January 2021 to 31 December 2021 in accordance with GRI Standards.

GRI 1 used

GRI 1: Foundation (2021)

GRI STANDARDS DISCLOSURE

PAGE REFERENCE

NOTES/OMISSIONS

General disclosure GRI 2: General disclosure (2021)

2-1 Organizational details

12-15, 20, 26

2-2 Entities included in the organisation’s sustainability reporting

105-106

2-3 Reporting period, frequency and contact point

105-106

2-4 Restatements of information This document is the first Sustainability Report of Sambonet Paderno Industrie drawn up according to GRI Standards. 2-5 External Assurance This document is the first Sustainability Report drawn up according to the GRI Standards on a voluntary basis and not submitted to external Assurance. 2-6 Activity, value chain and other business relationships

20-23, 70-77

2-7 Employees

107

2-8 Workers who are not employees

108

2-9 Governance structure and composition

15 Si evidenzia che la traduzione dei GRI Standards è stata effettuata ai soli fini di una più efficace lettura in quanto attualmente non è disponibile la traduzione ufficiale in lingua italiana.

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GRI STANDARDS DISCLOSURE

PAGE REFERENCE

2-10 Nomination and selection of the highest governance body 2-11 Chair of the highest governance body

2-12 Role of the highest governance body in overseeing the management of impacts 2-13 Delegation of responsibility for management of impacts 2-14 Role of the highest governance body in sustainability reporting 2-15 Conflicts of interest

NOTES/OMISSIONS There is currently no process of appointing the highest formalized governing body. The highest governing body supervises the management of impacts through the approval of the Sustainability Report and the monitoring of current ESG activities.

With regard to the management of issues related to Sustainability, the Company is structuring a dedicated team, which will have the role of carrying out initiatives related to ESG issues, monitoring the compliance of the Company with the new regulations and, finally, coordinate the activities related to sustainability reporting. The highest governing body examines and approves the Sustainability Report.

There are no conflicts of interest due to the absence of significant cross-shareholdings with suppliers or other stakeholders, nor with related parties.

2-16 Communication of critical concerns The Company holds regular meetings to discuss critical aspects that coincide with management review. 2-17 Collective knowledge of the highest Although there is no governance body formalised ESG skills training and development plan, the highest governing body, as competent, is involved in ESG strategic decisions. 2-18 Evaluation of the performance of the highest governance body

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There is currently no provision for an evaluation of the performance of the highest governing body.

GRI STANDARDS DISCLOSURE

PAGE REFERENCE

NOTES/OMISSIONS

2-19 Remuneration policies The sole administrator receives a fee. Executives, instead, receive more than the minimum guaranteed treatment and, in addition, are part of an MBO programme. 2-20 Process to determine remuneration

Currently there is no formal process for drafting a policy on remuneration and the determination of the same.

2-21 Annual total compensation ratio

The ratio of the total annual remuneration of the most paid person in the organization and the median total annual remuneration of all employees (excluding the highest paid person is 5,69 for 2021 and 4,80 for 2020. The ratio of the percentage increase in the total annual salary of the highest paid employee of the organization and the median percentage increase in the total annual salary of all employees (excluding the highest paid employee) is 1.18.

2-22 Statement on sustainable development strategy

2-23 Policy commitments

24-25, 27, 73-74

2-24 Embedding policy commitments

24-25, 27, 73-74

2-25 Processes to remediate negative impacts

Sambonet’s integrated management system, through formalized policies and procedures, allows the company to have a solid and constant control on the management of any type of impact.

2-26 Mechanisms for seeking advice and raising concerns

Currently any reports can be addressed to the email of the ODV.

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GRI STANDARDS DISCLOSURE

PAGE REFERENCE

2-27 Compliance with laws and regulations

2-28 Membership associations

2-29 Approach to stakeholder engagement

38-43

2-30 Collective bargaining agreements

Material issues GRI 3:Management 3-1 Process to determine material topics of material topics (2021) 3-2 List of material topics

44-48

Value creation GRI 3:Management 3-3 Management of material topics of material topics (2021)

28-29, 44-48

GRI 201: Economic 201-1 Direct economic value generated Performance (2016) and distributed

106

Enhancement and well-being of people GRI 3:Management 3-3 Management of material topics of material topics (2021)

44-48, 52-69

GRI 401: Employment (2016)

401-1 New employee hires and employee turnover

108

401-2 Benefits provided to full-time employees that are not provided to temporary or part-time employees

62-65

GRI 404: Training and Education (2016)

404-1 Average hours of training per year per employee

109

Corporate Governance GRI 3:Management 3-3 Management of material topics of material topics (2021)

26, 44-48

GRI 405: Diversity and Equal Opportunity (2016)

109

405-1 Diversity of governance bodies and employees

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NOTES/OMISSIONS

GRI STANDARDS DISCLOSURE

PAGE REFERENCE

NOTES/OMISSIONS

Compliance and Risk management GRI 3:Management 3-3 Management of material topics of material topics (2021)

24-27, 44-48

GRI 205: 205-3 Confirmed incidents of corruption 27 Anti-corruption and actions taken (2016)

During the year 2021 Sambonet Paderno Industrie Spa has not recorded any incidents of corruption

GRI 206: 206-1 Legal actions for anti-competitive 27 During the year 2021 Anti-competitive behavior, anti-trust, and monopoly Sambonet Paderno Behavior practices Industrie Spa did not face legal actions for anticompetitive behavior, antitrust and monopolistic practices Workers' health and safety GRI 3:Management 3-3 Management of material topics of material topics (2021)

44-48, 67-69

GRI 403: Occupational Health and Safety (2018)

403-1 Occupational health and safety management system

67-69

403-2 Hazard identification, risk assessment, and incident investigation

68-69

403-3 Occupational health services

68-69

403-4 Worker participation, consultation, and communication on occupational health and safety

403-5 Worker training on occupational health and safety

403-6 Promotion of worker health

403-7 Prevention and mitigation of occupational health and safety impacts directly linked by business relationships

68-69

403-8 Workers covered by an 112 All employees and workers occupational health and safety who are not employees management system of Sambonet Paderno Industrie Spa are covered by an occupational health and safety management system. 403-9 Work-related injuries

112

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GRI STANDARDS DISCLOSURE

PAGE REFERENCE

NOTES/OMISSIONS

Diversity, Inclusion and Protection of Human Rights GRI 3:Management 3-3 Management of material topics of material topics (2021)

44-48

GRI 405: Diversity and Equal Opportunity (2016)

124-126

405-1 Diversity of governance bodies and employees

GRI 406: 406-1 Incidents of discrimination and 66 Non-discrimination corrective actions taken (2016) Protection of the territory and development of local communities GRI 3:Management 3-3 Management of material topics of material topics (2021)

30-33, 44-48

GRI 413: Local Communities (2016)

30-33

413-2 Operations with significant actual and potential negative impacts on local communities

Responsible procurement GRI 3:Management 3-3 Management of material topics of material topics (2021)

44-48, 70-74

GRI 204: Procurement Practices (2016)

113

204-1 Proportion of spending on local suppliers

Sustainable packaging GRI 3:Management 3-3 Management of material topics of material topics (2021)

44-48, 77, 87

GRI 301: Materials (2016)

114

301-1 Materials used by weight or volume

134 Sustainability Report 2022

During 2021 there were no incidents related to discriminatory practices within Sambonet Paderno Industrie Spa

GRI STANDARDS DISCLOSURE

PAGE REFERENCE

NOTES/OMISSIONS

Quality, sustainability and product safety GRI 3:Management 3-3 Management of material topics of material topics (2021)

44-48, 90-91

GRI 301: Materials (2016)

114

301-1 Materials used by weight or volume

GRI 416: Customer 416-2 Incidents of non-compliance 90 Health and Safety concerning the health and safety impacts (2016) of products and services

During 2021 there were no episodes of non-compliance with the regulations concerning the impacts on health and safety of the products of Sambonet Paderno Industrie Spa

Energy management and climate change GRI 3:Management 3-3 Management of material topics of material topics (2021)

44-48, 80-83

GRI 302: Energy (2016)

302-1 Energy consumption within the organization

115

302-3 Energy intensity

115

305-1 Direct (Scope 1) GHG emissions

115

305-2 Energy indirect (Scope 2) GHG emissions

116

GRI 305: Emissions (2016)

Management of water resources GRI 3: Management 3-3 Management of material topics of material topics (2021)

44-48, 85-86

GRI 303: Water and Effluents (2018)

303-1 Interactions with water as a shared resource

85-86

303-2 Management of water discharge-related impacts

85-86

303-3 Water withdrawal

117

303-4 Water discharge

117

303-5 Water consumption

118

Sustainability Report 2022

135

GRI STANDARDS DISCLOSURE

PAGE REFERENCE

Waste management and circular economy GRI 3:Management 3-3 Management of material topics of material topics (2021)

44-48, 77, 87

GRI 306: Waste (2020)

306-1 Waste generation and significant waste-related impacts

306-2 Management of significant impacts related to waste

306-3 Waste generated

119

306-4 Waste diverted from disposal

119

306-5 Waste directed to disposal

119

Research, development and product and process innovations GRI 3:Management 3-3 Management of material topics of material topics (2021)

16, 44-48, 76 96-97

Customer satisfaction GRI 3:Management 3-3 Management of material topics of material topics (2021)

136 Sustainability Report 2022

44-48, 99-101

NOTES/OMISSIONS