Sustainability Report 2023 - Sambonet Paderno Industrie

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Sustainability Report

1. From a mechanical industry to a leader group at an international level

1.1 Profile

Our values and our history pag. 14

1.2 Transparent management of our business

Governance, Ethics and Compliance pag. 26

1.3 The creation of value

Economic performance pag. 30

1.4 The relationship with the territory

Local communities pag. 32

2.

What sustainability means for Sambonet

2.1 The commitment to sustainability

A long-term vision pag. 40

2.2 Our interlocutors

The strategic role of Stakeholders pag. 44

2.3 What is important Materiality assessment pag. 48

3.

Creating

value within Sambonet Paderno

3.1 Us

People at the heart of the company pag. 56

3.2 From raw materials to shipping

The production process pag. 76

3.3 Higher productivity, lower environmental impact

Natural resources throughout the process pag. 84

3.4 Biodiversity pag. 94

4. Product responsibility and customer orientation

4.1 At the center of our attention The product pag. 98

4.2 Our customers Their satisfaction pag. 106

5. Attachments

5.1 Methodological Note pag. 112

5.2 Summary of Performance Indicators pag. 114

5.3 Perimeter table of material topics pag. 127

5.4 GRI Content Index pag. 129

Letter to stakeholders

Through products created for everyday dining, we want to share with you our world, our expertise, and our sensitivity. It’s a blend of quality, innovation, culture, and art that evolves according to the times we live in, and cannot disregard respect for the planet and the people who welcome us, by choosing us.

The year 2023 has led us through an evolutionary journey from many perspectives, and—with Giovanni Coppo stepping into his new role as CEO—we are more focused than ever on defining a global strategy for Sambonet Paderno Industrie, the beating heart of the entire Arcturus Group. In this highly complex and ambitious journey, we find it essential to foresee even more sustainable growth, focused on the present but with a long-term vision of corporate social responsibility.

For the first time with Giovanni by our side, this year we want to share with you the projects, progress, and ambitions we have achieved, in the name of the commitment we have made over the years, supported by the strength of our brands and the people who contribute every day to the success of this company.

Working side by side has helped us advance ongoing projects aimed at improving production efficiency, allocating further investments to 4.0 applications, and enhancing the production of energy from renewable sources, which now allows us to cover over 40% of the site’s total consumption.

During this period of shared growth, the advances in welfare have given us the greatest satisfaction, through projects aimed at valuing and safeguarding our human capital. Inclusivity, gender equality, physical and psychological well-being are some of the topics we have focused on and that Giovanni will make increasingly central in his leadership of the company.

The year of Sambonet in numbers

PRESENT IN OVER EMPLOYEES

WASTE DESTINED FOR RECOVERY 77%

PERMANENT CONTRACTS

91%

FEMALE EXECUTIVES 50%

PIECES PRODUCED

6,8 MLN

TOTAL REVENUE

€ 99 MLN

KNOW-HOW REGISTERED

EXPENDITURE ON LOCAL SUPPLIERS

58%

RENEWABLE ENERGY

100%

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.

In 2023, on the strength of its long-established practices, obtained certification for Gender Equality according to the UNI guidelines PdR125:2022.

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.

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.

Constantly striving for uniqueness, Sambonet has always given great craftsman-like attention to detail, maintaining a constant balance between tradition and innovation. Indeed, since the early 1960s it has prided itself on collaborations with the greatest masters of Italian design, amongst whom Gio Ponti, Anna Castelli Ferrieri, Rodolfo Dordoni and Giulio Iacchetti and, more recently, Serena Confalonieri and Gianni Cinti

Today the brand’s vocation for design continues to be affirmed in the work of the company’s in-house Style Centre

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.

Our values and our history

Between nature and design The Sambonet Paderno plant

Sambonet Paderno carries out its activities in a plant that stands in an area of 110,000 square meters with eco-friendly architecture, harmoniously inserted in nature, between Vercelli and Novara.

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.

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”.

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.

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.

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 2023 with Radici – an innovative buffet project dedicated to the HoReCa world –, the Italian genius of the Style Centre enabled Sambonet to mark itself out with special mention at the German Design Awards in the category “Excellence in Business to Business - Retail & Trade Solutions”.

Awards recognised at international level

Our history

The Origins

1978

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,

1997

1997 saw the acquisition of Sambonet, a historic Piedmontese cutlery and tableware company, founded in Vercelli on May 15, 1856 by Giuseppe Sambonet, a goldsmith and graduate of the Institute of Fine Arts. Between 2000 and 2002 the new headquarters were built, a success in eco-friendly architecture, harmoniously integrated in nature, designed by Novarabased architect Enrico Frigerio.

The Identity

2004

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

Certifications

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

2006

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.

2009 Acquisition

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.

Arcturs Group

2013 2017

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. 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.

Arcturus is introduced to the market. Thanks to its ten brands, the Group becomes a reference point for the entire tableware business worldwide

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

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.

1.1 Profile

Our values and our history

Sambonet, an international leader in the manufacturing of stainless-steel eating utensils and tableware and items in electroplated nickel silver, is divided more or less equally between the Ho.Re.Ca. and retail sectors. In addition to its own tableware lines, Sambonet offers an exclusive selection of top-quality objects for serving, home living and an essential kitchen collection. A practical and functional series of cooking utensils that combines the brand’s style with the latest technology.

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.

Arthur Krupp inspires every table with an ever more ample catalogue where the lines of stainless-steel cutlery and tableware – also in PVD colours – are accompanied by porcelain and stoneware collections in modern designs and with lively decorations, as well as a very wide range of buffet and serving items. An offering adapted to every stylistic demand in professional catering and beyond.

Cutlery
China and Bonechina
Cookware
Table and serving
Pepper and Salt Machines
Bakery
Ktichen
Vasels
Ethnic Cuisine
Home Bar
Table
Bar and accessories
Home Decor
Buffet
Coffee and tea
Buffet
Knives
Kitchen Utensils

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.

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

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 in the entire decision-making and operational process, taking all dimensions – social, economic and environmental – into consideration. In this regard, in 2023 the company, among the first in Italy in its industry, obtained UNI/PdR 125:2022 certification.

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.

1.2 Transparent management of our business

Governance, Ethics and 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 Board of Statutory Auditors, for its part, attends to safeguarding the integrity of the company’s business. It is made up of chartered external professionals, completely independent, who monitor the company’s administration in accordance with law and the principal financial standards.

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.

Since July 2023, the company has set up a platform for whistleblowing in accordance with Legislative Decree of March 2024.

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.

Confirmed corruption incidents in 2023

Lawsuits for anti-competitive behavior, antitrust and monopolistic practices in 2023

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

Economic performance 1.3 The creation of value

2023 Main economic results

Sambonet Paderno Industrie S.p.A

The 2023 Financial Statements for Sambonet Paderno Industrie closed with revenues from sales and services of EUR 96,299,335, posting a year-on-year increase of 11% increase over 2022.

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.

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 2023, the economic value generated amounted to about 99.26 million euros, while that distributed amounted to about 85.95.

Economic value distributed

1%

Distributed to capital providers

12%

Distributed to employees

8%

Distributed to the Public Administration

67%

Distributed to suppliers

In general, the largest share of the total value distributed was distributed to the Suppliers category, for a total of 67%: 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 12% of the total value distributed.

The remaining portion of the distributed value, about 1% in total, is allocated to Capital Suppliers, Public Authorities (through payment of current taxes and various other levies) and to the local communities for which the Company has registered donations, including LILT Novara and Fond. Com Novarese for membership in the “Sociali e Sportivi in centro” project. Furthermore, through the Associazione Naz. Rangers Europa, the company supported the communities in Emilia Romagna stricken by the floods of 2023.

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.

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:

- CNVV Confindustria Novara Vercelli Valsesia

- ANIMA Confindustria Meccanica

- FEC Federation of European manufacturers of Cookware and cutlery

- FIAC Associazione fabbricanti italiani articoli per la casa, la tavola ed affini.

Some initiatives that have characterized the involvement of Sambonet in the local community during the 2023 are listed below.

1.4 The relationship with the territory Local communities

Scholarships

“Maria Valentina Francia” for vocational schools

In 2023 Sambonet pursued its educational commitment by supporting students from local vocational schools, providing scholarships and becoming an active participant in workshops and open days in the company, thus implementing collaboration with the institutes involved in the programme. A novelty in this second edition was the awarding of a new scholarship, aimed at the best school delegation 2022-23: a project that put groups of students in contact on one of the themes in the UN’s Agenda 2030 for Sustainable Development, “Women & STEM - Women’s innovation in the manufacturing context”, extremely consistent with Sambonet’s own sustainable and inclusive development.

The valorisation of training courses in mechanics and electronics at the technical institutes Giuseppe Omar in Novara, Giulio Cesare Faccio in Vercelli and Ascanio Sobrero in Casale Monferrato continues; the courses are enriching themselves and setting ever more ambitious goals.

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.

Career day to connect with young talent

2023 was also the year in which Sambonet launched a series of job orientation gatherings, in agreement with a number of local Universities whose training activities matched the company’s professional areas and job opportunities.

These dates were a recruiting opportunity for some students in our workforce but also, and especially, an opportunity for the company and students to make contact with each other and get ideas and suggestions for their working future. Examples of this type of collaboration are the days when Sambonet Paderno Industrie’s human resources staff met with undergraduates and recent graduates of UPO Novara and with final year students from the Sobrero Professional Institute in Casale Monferrato.

Collaborations with the chefs of tomorrow

Training also continues for students from professional cookery schools and chefs from around the world. To its well-established collaboration between the company and ICIFInternational School of Italian Cuisine.

Sambonet Paderno Industrie adds a partnership with Slow Food, supporting the project linked to the “Guida Osterie d’Italia 2024”, entering into relations with new Italian chefs and restaurateurs who stand out by the quality of their work. Once again, the aim is to relate Italy’s culinary excellence to the quality of the tools used in the kitchen.

In this context, the company opens the doors of its production to students and professionals, and actively participates in Slow Food’s institutional meetings to testify to the attention, ingenuity and quality – also in the field of corporate social sustainability – that distinguish the work of Sambonet Paderno Industrie, notably in the Ho.Re.Ca. sphere.

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 11 years, Sambonet publishes its Sustainability Report.

HOW SAMBONET TACKLES CHANGE

Sustainability Report for more than 11 years

Photovoltaic system and 100% certified energy from renewable sources

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

Testifying to its commitment of more than 11 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.

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.

The publication of the 2023 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 2024, leading to the publication of this document.

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.

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 2023 it again earned a percentile ranking of 86 in the cutlery, hand utensils and hardware production sector in general, demonstrating its alignment with the industry’s benchmark companies.

2.2 Our 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 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.

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

TRADE UNIONS

CUSTOMERS

FINAL CONSUMERS

SUPPLIERS

PROPERTY

EMPLOYEES

ASSOCIATIONS AND NGOS

MEDIA

PARTNERS LOCAL COMMUNITIES

INVESTORS AND BANKS 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

B2B CUSTOMERS

FINAL CONSUMERS

SUPPLIERS

PROPERTY

EMPLOYEES

INVESTORS AND BANKS

LOCAL COMMUNITIES

SCHOOLS, UNIVERSITIES

METHOD OF ENGAGEMENT

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.

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

Website, conferences/visits.

Press releases, press reviews, website, internal meetings.

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

Press releases, website, meetings and gatherings.

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

Website, conferences/visits and Open Days, Scholarships. AND RESEARCH CENTERS

ASSOCIATIONS AND NGOs

TRADE UNIONS

GOVERNMENT ENTITIES, INSTITUTIONS

Website.

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

Website. AND PUBLIC ADMINISTRATION

PARTNERS

MEDIA

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

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

2.3 What is important

Materiality assessment

The materiality analysis is the tool with which the definition of “material” issues is made; this concerns those aspects of economic, social and environmental responsibility that are of significance for both the Company and its Stakeholders, aspects which are then set out and analysed in the Sustainability Report. “Material” issues therefore influence both the organisation’s business strategy and the opinions and assessments of its stakeholders.

The process of defining these issues has been conducted gradually over the years; it initially called for benchmarking analyses and company workshops and later for the random involvement of various internal and external stakeholders.

The data acquired have made it possible to finalise Sambonet Paderno Industrie’s materiality matrix in which the issues that the organisation must consider and the intersection of the levels of interest that they exert on the various stakeholders are represented.

MATRIX OF MATERIALITY OF THE ORGANIZATION

Governance, Ethics and Integrity

Economic responsibility

Product responsibility

Diversity and inclusion

Wellness of staff

Training, attraction and retention of

Stakeholders

Corporate governance

Responsible packaging

Protection of human and workers' rights

Environmental responsibility

Responsibility towards personnel

Social responsibility

Worker's health and safety

Energy management and climate change

Quality, sustainability and product safety

Customare satisfaction

Research, development and product&process innovations

Waste management and circular economy

Management of water resources

Compliance and risk management

Value creation

Below, a description of the 18 material issues:

MATERIAL TOPICS

GOVERNANCE

COMPLIANCE AND RISK MANAGEMENT

CORPORATE DESCRIPTION

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.

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

RESEARCH, DEVELOPMENT AND PRODUCT

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 and development activities aimed at the design AND PROCESS INNOVATIONS 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

Development of products and services that comply with PRODUCT SAFETY 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

Support to local communities through sponsorships, DEVELOPMENT OF LOCAL COMMUNITIES 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.

MATERIAL TOPICS

RESPONSIBLE SOURCING

CORPORATE DESCRIPTION

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

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

MANAGEMENT OF WATER RESOURCES

SUSTAINABLE PACKAGING

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.

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

Responsible management of waste related to business CIRCULAR ECONOMY 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

Promotion of initiatives to improve the well-being of OF STAFF 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

Promotion of equal opportunities through the development OF HUMAN AND WORKERS' RIGHTS 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.

2.3 What is important

Materiality assessment

MATERIAL TOPICS

TRAINING, ATTRACTION AND RETENTION OF TALENT

PROTECTION OF HUMAN AND WORKERS' RIGHTS

STAKEHOLDERS ENGAGEMENT & RELATIONS

CORPORATE DESCRIPTION

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

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.

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.

The results of the analysis made it possible to define our Sustainability Path, resulting in an ESG - Environmental, Social, Governance - Sustainability Strategy, aware of the path we have taken and the road we still have to travel.

The foundations laid in recent years by management systems, projects and collaborations have enabled the company to focus on the main issues of social and environmental responsibility, working towards both employees and the region. (Creation of Value within Sambonet Paderno - Chapter 3)

In this context, always aiming at excellence for our products, we have kept the quality of the products themselves and customer satisfaction at the centre of attention (Product Responsibility and Customer Orientation - Chapter 4)

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.

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.

People at the heart of the company

Specifically:

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.

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.

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°

293

EMPLOYEES

12% Company headcount on 31 December 2022

During the reporting year Sambonet recorded a hiring turnover of in decline with data for 2022 uptrend with data for 2022.

OUTGOING TURNOVER OF

16%

Sambonet’s commitment is twofold:

Valuing resources Creating an inclusive worplace

VALUING THE YOUNG GENERATIONS

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*

DIVERSITY: A VALUE FROM THE OUTSET

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. The Pdr 125 certification obtained in 2023 naturally placed itself in this context. 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 2023 Sambonet employees belonging to protected categories are 11 (12 in 2022). 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.

* Regarding the type of contracts, 91% 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.

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.

Conscious of how much these factors influences the success of the company, Sambonet seeks every day to invest in its people, in responsible sourcing and in the continuous development of its products.

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

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. 3.1 Us

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.

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 non-compulsory 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 2023, Sambonet provided

7.174

In particular, hours of training. In 2022 there were 8,552.

32% 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.

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. 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.

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 well-being 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:

• Supplementary Health Care Assistance Metasalute, a form of contribution prescribed by the CCNL (national collective labour agreement) of the category (i.e., the metalworking industry);

• Agreements of various kinds through understandings with local shops/restaurants and specific agreements for specific employees;

• Extra discounts for purchases at the company outlet;

• Company gym;

• Company restaurant;

Free supply of drinking water in the entire establishment;

• Flexible working hours and remote working and the offering of part-time contract types that meet employees’ needs. In 2023 the Company individually acceded to new requests for part-time contracts and the extension of remote working hours for certain workers, reconfirming its commitment and vision.

• Moments dedicated to strengthening professional and human ties, through group training in soft skills and extraordinary corporate events, as in the case of “Festa al Castello”. This was the first official celebration that the management dedicated to its people, a special “thank you” and the opportunity to announce the approaching handover of responsibilities to the new CEO, the second generation to lead the company.

In addition to providing 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 wellbeing of its employees.

3.1 Us

People at the heart of the company

New company restaurant “Trattoria Americana”

The importance of making people’s time at work more and more agreeable is reflected not only in the services offered but also in the improvement of the company premises. At year’s end the company conducted a project to redevelop the entire employees’ service area, a project involving the total refurbishment of the canteen and the adjoining relaxation area, fitting out a large recreation space equipped with table football.

Under the company’s Creative Management, the premises were designed by Studio Frigerio so as to interpret the taste and the new image of the company’s brands. Inaugurated just before Christmas, the company restaurant was named “Trattoria Americana” in memory of the establishment the Coppo family had run before starting their own metalworking business

WHP - Workplace Health Promotion

In 2023, under the general coordination of the Piedmont Regional Council, the WHP project was launched; the project envisages the creation of a Network that will support companies in helping to improve workers’ state of health and well-being, encouraging, notably in the workplace, actions and organisational and behavioural changes through the implementation of interventions recognised as recommended practices.

Sambonet, which has been present in the project since 2018, has again joined the network, which is coordinated locally directly by the Novara ASL and Confindustria Novara Vercelli Valsesia (CNVV).

OTTOBRE ROSA

SAMBONET PADERNO INDUSTRIE ADERISCE AL MESE DELLA PREVENZIONE CON LILT NOVARA

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.

Alfonso Borghi, 69 x 200 cm
Mauro Staccioli (1937-2018)

MU – 141

La Vita Infinita, Kengiro Azuma, Volo, Antonio Paradiso
wood portraits, Pierlugi e Franco Coppo, Orticanoodles

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).

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 2023 there were 6 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.

In the field of prevention in 2023, in continuity with the WHP network projects, a collaboration was set up with LILT Novara, with which the Hepatitis C Monitoring Campaign - First Half 2023 was conducted; this called for information sessions and tests carried out directly in the Company. The Women’s Cancer Prevention Campaign (Pink October) - Second Half 2023 featured training sessions and breast examinations in 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:

Evaluation and risk management

• 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.

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.

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 non-compliance and corrective and preventive actions.

During 2023 there were 6 accidents, and, therefore, the accident frequency index is 2.39, up compared to 2022 where it was 2.08.

With a view to prevention and continuous improvement, the company has always invested in education, information and training in order to improve the level of awareness of the risks and dangers associated with each tasks.

NUMBER OF EMPLOYEE ACCIDENTS IN 2023

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.

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

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.

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

The list of suppliers, for 2023, is composed of almost for a total expense2 of ONE THOUSAND

companies

46,620,450 euros

1 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 2023 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 2023, refer to the GRI 204-1 performance indicator Proportion of expenditure to local suppliers -Table No. 16.

For Sambonet Paderno, the awareness of the entire supply chain on ESG issues is a priority. The company, with its integrated management system for quality, environment, energy, social responsibility and safety, wishes that its employees also feel strongly about these issues.

To empower the entire supply chain, the Company has introduced the so-called “Qualified Suppliers List”, a list drawn up on the basis of the responses to an assessment questionnaire to which suppliers are subjected

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.

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

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.

The material cutting technologies currently in use (with laser and with water) enable the company to carry out its production while minimising waste of raw materials, which are used to full potential.

In recent years Sambonet has dedicated numerous resources (both human and financial) to innovating and renewing its processes, introducing new technologies and implementing automation and efficiency in the manufacturing of eating utensils, saucepans and tableware.

The new technologies introduced have consolidated the practice of experimentation in the creation of new products, stimulating creativity and enhancing the professional skills of the people involved.

20234

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.

Sambonet is committed to researching environmentally friendly materials or materials with a reduced environmental impact to be used in production processes, such as production processes such as, for example, material of vegetable origin for drying the parts produced by the galvanic plant or recycled materials used for the vibratory finishing plant. The company constantly monitors not only the quantity of withdrawals and discharges, through meters installed in 2019, but

3.3 Higher productivity, lower environmental impact

Natural resources throughout the process

Energy

The 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 50001 certified management systems, it annually implements monitoring activities such as:

• Energy analysis carried out by the Energy 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

GREEN ENERGY.

Investing to improve

In 2023 the implementation of the photovoltaic system built in 2022 was completed.

Over 5,000 solar panels on an area of over 6,000 sq. m. The plant is able to generate 2,250,000 kWh annually, covering approximately 40% of its average consumption, thus considerably reducing CO2 emissions into the environment: the equivalent of planting 7,500 trees in the space of just five years.

A small but significant contribution for our planet.

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:

6 vehicles for business use

3 trucks 15 vehicles assigned to employees

3.3

Higher productivity, lower environmental impact

Natural resources throughout the process

In 2023 Sambonet recorded, overall, energy consumption, for production activities, equal to

24,442 GJ (6,789 MWh)

with an decrease of 12,5% compared to the previous year, in which consumption was 27,936 GJ (7,759 MWh).

Electric Eenrgy

3,891 MWH 14,008 GJ

More specifically, most consumption consists of the use of electricity, which amounted to 14.008 GJ (3.891 MWh) in 2023, while natural gas consumption amounted to 239.571 Sm3 in 2023

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 27.887 l in 2023 (22.429 l in 2022).

The year-on-year decrease in consumption testifies to the measures taken to optimise and stabilise energy consumption.

Natural Gas

239,571 SM3 9,439 GJ

Diesel

27,887 L 995 GJ

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 (Gas Methane)

0,03 0,57 0,04 0,57

The energy intensity indicators were calculated as the ratio between energy resource and pieces produced during the year 2023 (6,824,821 pcs) and 2022 (7,781,855 pz).

The indicators show that between 2022 and 2023 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.

3.3 Higher productivity, 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.

DIRECT GHG EMISSIONS

343 tCO2

INDIRECT GHG EMISSIONS

SCOPE 2 (MARKET BASED)

SCOPE 1 0

INDIRECT GHG EMISSIONS

SCOPE 2 (LOCATION BASED)

1.011 tCO2

2023 Direct emissions (scope 1) corresponds to the amount of CO2 stored from about 3,356 trees in a year5

5 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 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.

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.

WATER WITHDRAWAL AND DISCHARGE

124 thousand m3

83 thousand m3 OF WATER WITHDRAWN IN 2023 (138 IN 2022) OF WATER DISCHARGED IN 2023 (84 IN 2022)

3.3 Higher productivity, 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.

Overall, in 2023, there was a constant discharge withdrawal compared to 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

In 2023, civil and industrial activities led to the production of a total of 500 tonnes of waste, of which 92% 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 78% in the year 2023) is destined for recovery. Paper, cardboard and metals are completely managed through recovery.

WASTE FOR DISPOSAL (t) 2023

47,3 Liquids/ washing water

22,1 Sludge

16,4 Coal/sand

11,8 Abrasive material

11,4 Oils/emulsions

2,4 Packages

1,1 Other

WASTE FOR RECOVERY (t) 2023

287,0 Metals

94,0 Paper and cardboard

3,2 Electronic materials

3,1 Other

3.4 Biodiversity

On ‘World Bee Day’ we inaugurate our company beehive.

In May, Sambonet Paderno Industrie’s first biodiversity initiative kicked off with the creation, at its headquarters, of an apiary, in collaboration with 3Bee – the climate tech company that is a leader in biodiversity protection and implements regenerative projects using advanced technologies.

The Sambonet Paderno beehive complex consists of five hives, equipped with 3Bee Hive-Tech, that will become a safe home for as many as 1,500,000 bees feeding on the pollen of the wild flowers in the surrounding area. In monitoring the bees’ health and adding refuges for other pollinators, the company makes itself responsible for their connection to the ecosystems that characterise its environs. A small step towards the protection of biodiversity, which reinforces Sambonet’s commitment to sustainability for the benefit of a supply chain increasingly attentive to the environment and its inhabitants.

As proof of this commitment, 800 125-gram jars of honey were distributed to employees and customers in December 2023.

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.

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.

4.1 At the centre of our attention

The product

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.

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.

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.

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.

The laboratory is equipped with a PerkinElmer CLARUS 680 GC high-performance, dual-channel 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, and since december, a spectrophotometer UV-Vis Perkin Elmer Lambda 365+, in addition to, and all the basic analytical instruments.

12

accredited tests

More than 1,000 analyses per year

More specifically, the laboratory performs the following tests:

TYPE OF SAMPLE TESTS PERFORMED

STEEL

GLASS

CERAMIC

PLASTIC

METALLICS

SILICONE

WASTEWATER

Overall migration

Specific migration of nickel, chromium and manganese

Overall migration

Specific migration of lead

Specific migration of lead and cadmium

Overall migration

Specific migration of metals

Migration of dyes

Specific migration of metals

Overall migration*

Migration of dyes*

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

“Attention to the environment, valorisation of people and the surrounding area are aspects that make more and more of a difference. That’s why, for us, the sustainability of a product is also the result of a supply chain in which clean energy and human resources are considered just as fundamental as the quality of the raw materials or the design of the object itself”.

SUSTAINABILITY ON THE TABLE

4.1 At the centre of our attention

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.

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.

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

In the last three years, spending on Industry 4.0 amounted to more than EUR 5 million; 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 eco-sustainable industrial processes

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.

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

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.

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

4.2 Our customers

Their satisfaction

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*

1,51%

Impact of returns on total turnover

0,11%

Defectiveness on the total pieces shipped

*In relation to the volume of turnover and the types of defects found, the performance, which refers to the year 2023, tends to be 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. 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.

Ho.Re.Ca. focus

2023 was the year in which the company, supported by the Arcturus Group, made its presence known at trade fairs and events for the hospitality industry in Italy and around the world. After Host Milano, five events were held in Italy and, between Europe, the Middle East and the USA, the company doubled its direct or indirect participation – alongside its local distributors – at the most important Ho.Re.Ca. exhibitions.

Trade 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.

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 12 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 2023 (from 1 January 2023 to 31 December 2023). 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 to the same data for the years before 2023.

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 2023 Sustainability Report was not verified by an independent third party, however it was submitted for approval by the Sole Administrator of Sambonet Paderno on 24/10/2024.

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

5.2 Summary of performance indicators

CHAPTER

Economic performance

Table 1

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

CHAPTER 3

HOW WE CREATE VALUE.

Sambonet people

GRI 2-7 EMPLOYEES4

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

Table 3

Table 4

GRI 2-7: Total number of employees by type of job and gender (headcount)

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)

GRI 401-1 NEW EMPLOYEE HIRES AND EMPLOYEE TURNOVER

Table 6 GRI 401-1: Incoming employees by age, gender and geographical are

2023

Table 7

GRI 401-1: Outgoing employees by age group, gender and geographical area

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

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

Table 10 GRI 405-1: Employees by professional category and age as a percentage 2023

Table 11

GRI 405 -1: Employees by gender and age as a percentage

Table 12

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

Table 13

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

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

2023

GRI 403-9 WORK-RELATED INJURIES

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

From raw material to shipment: our production process

GRI 204-1 PROPORTION OF SPENDING ON LOCAL SUPPLIERS

Table 16

GRI 204-1: Spending on local suppliers by category, in €, and percentage of local spending on total supplier spending Type

Type of categories 2023

5 The accident index is calculated through the ratio between the number of accidents and the hours worked by employees/external workers, multiplied by 200,000 (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,

hours per day.

GRI 301-1 MATERIALS USED BY WEIGHT OR VOLUME

Table 17

MATERIAL

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

GRI 302-3 ENERGY INTENSITY

Table 19

GRI 302-3: Energy intensity indicators by type of energy8

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

8 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 2023 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.

GRI 305-2 INDIRECT GREENHOUSE GAS EMISSIONS (GHG) (SCOPE 2)9

Table 21

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

the

Table 22

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

emissions according to the Market-Based approach UDM 2021 2022 2023

purchased with certificate of origin

Scope 2 Market based

Conversion

9 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

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 sources

Third party water resources 100% fresh water (≤1.000 mg/L

GRI 303-4 WATER DISCHARGE

Table 24

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

Discharge of water

Surface water

100% fresh water

(≤1.000 mg/L Total solids dissolved)

GRI 303- 5 WATER CONSUMPTION

Table 25

GRI 303-5: Total water consumption in all areas categories in megaliters10 Water consumption

Total consumption of water

Change in water storage if it has a significant impact on water resources

Ground waters

Megaliters

Megaliters

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 disposal11

GRI 306-5: Waste directed to disposal12

10 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.

11 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.

12 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.

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 Caused by the Group and performance related to its activities

Enhancement and 401 – Employment Group, Employees Caused by the Group wellbeing of people 404 – Training and education

Corporate Governance 405 – Diversity and Group Caused by the Group equal opportunity

Compliance and 205 – Anti-corruption Group, Suppliers, Caused by the Group Risk management 206 - Anti-competitive Employees behavior

Workers’ health 403 - Occupational Group, Employees Caused by the Group and and safety health and safety related to its activities

Diversity, Inclusion and 405 - Diversity and equal Group, Employees, Caused by the Group and Protection of Human Rights opportunity Suppliers related to its activities 406 - Nondiscrimination

Protection of the territory 413 - Local Group, Local Caused by the Group and development of local Communities Communities and directly related communities to its activities

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 301 - Materials Group Caused by the Group

Quality, sustainability 416 - Customer health Group, Suppliers, Caused by the Group and product safety and safety Customers and directly related to its 301 - Materials activities

Research, development n/a

Group, Suppliers, Caused by the Group and product and Customers and directly related to its process innovations activities

Customer satisfaction n/a

Group, Customers 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

Statement of use The Sambonet Paderno Industrie Group has reported the information mentioned in the GRI Content Index for the period from 1 January 2023 to 31 December 2023 in accordance with GRI Standards.

GRI 1 used GRI 1: Foundation (2021)

PAGE

GRI STANDARDS DISCLOSURE REFERENCE NOTES/OMISSIONS

General disclosure

GRI 2: General 2-1 Organizational details 14-17, 22, 28 disclosure (2021)

2-2 Entities included in the 112-113 organisation’s sustainability reporting

2-3 Reporting period, frequency and 112-113 contact point

2-4 Restatements of information

2-5 External Assurance

This document is the first Sustainability Report of Sambonet Paderno Industrie drawn up according to GRI Standards.

This document is the second 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 22-25, 72-79 business relationships

2-7 Employees 115

2-8 Workers who are not employees 116

2-9 Governance structure and 28 composition

13 Please note that the translation of the GRI Standards was carried out for the sole purpose of more effective reading as the official translation in Italian is currently not available.

2-10 Nomination and selection of the

There is currently no highest governance body process of appointing the highest formalized governing body.

2-11 Chair of the highest governance body 28

2-12 Role of the highest governance body in overseeing the management of impacts

2-13 Delegation of responsibility for

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 impacts 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.

2-14 Role of the highest governance body in sustainability reporting

2-15 Conflicts of interest

2-16 Communication of critical concerns

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.

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

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

2-19 Remuneration policies

2-20 Process to determine remuneration

2-21 Annual total compensation ratio

The sole administrator receives a fee. Executives, instead, receive more than the minimum guaranteed treatment and, in addition, are part of an MBO programme.

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

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 1.11.

2-22 Statement on sustainable 7 development strategy

2-23 Policy commitments 26-27, 29, 73-75

2-24 Embedding policy commitments 26-27, 29, 73-75

2-25 Processes to remediate negative

Sambonet’s integrated impacts 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

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

Material issues

2-27 Compliance with laws and regulations 29

2-28 Membership associations 32

2-29 Approach to stakeholder 40-46 engagement

2-30 Collective bargaining agreements 66

GRI 3:Management 3-1 Process to determine material topics 46-52 of material topics (2021) 3-2 List of material topics

Value creation

GRI 3:Management 3-3 Management of material topics 30-31, 44-52 of material topics (2021)

GRI 201: Economic 201-1 Direct economic value generated 114 Performance (2016) and distributed

Enhancement and well-being of people

GRI 3:Management 3-3 Management of material topics 44-52, 56-71 of material topics (2021)

GRI 401: 401-1 New employee hires and employee 116 Employment turnover (2016) 401-2 Benefits provided to full-time 66-69 employees that are not provided to temporary or part-time employees

GRI 404: Training 404-1 Average hours of training per year 117 and Education per employee (2016)

Corporate Governance

GRI 3:Management 3-3 Management of material topics 28, 44-52 of material topics (2021)

GRI 405: Diversity 405-1 Diversity of governance bodies 117 and Equal and employees Opportunity (2016)

Compliance and Risk management

GRI 3:Management 3-3 Management of material topics 26-29, 44-52 of material topics (2021)

GRI 205: 205-3 Confirmed incidents of corruption 29

During the year 2021 Anti-corruption and actions taken Sambonet Paderno (2016) Industrie Spa has not recorded any incidents of corruption

GRI 206: 206-1 Legal actions for anti-competitive 29

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 44-52, 71-73 of material topics (2021)

GRI 403: 403-1 Occupational health and safety 120 Occupational management system Health and Safety (2018)

403-2 Hazard identification, risk 73 assessment, and incident investigation

403-3 Occupational health services 73

403-4 Worker participation, consultation, 73 and communication on occupational health and safety

403-5 Worker training on occupational 120 health and safety

403-6 Promotion of worker health 120

403-7 Prevention and mitigation of 73 occupational health and safety impacts directly linked by business relationships

403-8 Workers covered by an 120 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 73, 120

Diversity, Inclusion and Protection of Human Rights

GRI 3:Management 3-3 Management of material topics 44-52 of material topics (2021)

GRI 405: Diversity 405-1 Diversity of governance bodies 117-119 and Equal and employees Opportunity (2016)

GRI 406: 406-1 Incidents of discrimination and 72

During 2023 there were no Non-discrimination corrective actions taken incidents related to (2016) discriminatory practices within Sambonet Paderno Industrie Spa

Protection of the territory and development of local communities

GRI 3:Management 3-3 Management of material topics 33-35, 44-52 of material topics (2021)

GRI 413: Local 413-2 Operations with significant actual 32-37 Communities and potential negative impacts on local (2016) communities

Responsible procurement

GRI 3:Management 3-3 Management of material topics 44-52, 77 of material topics (2021)

GRI 204: 204-1 Proportion of spending on local 121 Procurement suppliers Practices (2016)

Sustainable packaging

GRI 3:Management 3-3 Management of material topics 44-52, 51, 128 of material topics (2021)

GRI 301: Materials 301-1 Materials used by weight or volume 83, 122 (2016

Quality, sustainability and product safety

GRI 3:Management 3-3 Management of material topics 44-52, 99-101 of material topics (2021)

GRI 301: Materials 301-1 Materials used by weight or volume 83, 122 (2016)

GRI 416: Customer 416-2 Incidents of non-compliance 94 Health and Safety concerning the health and safety impacts (2016) of products and services

Energy management and climate change

GRI 3:Management 3-3 Management of material topics 44-52, 80-83 of material topics (2021)

GRI 302: Energy 302-1 Energy consumption within the 123 (2016) organization

302-3 Energy intensity 123

GRI 305: Emissions 305-1 Direct (Scope 1) GHG emissions 123 (2016)

305-2 Energy indirect (Scope 2) 124 GHG emissions

Management of water resources

GRI 3: Management 3-3 Management of material topics 51, 91, 135 of material topics (2021)

GRI 303: Water 303-1 Interactions with water as a shared 93-94 and Effluents resource (2018)

303-2 Management of water 93-94 discharge-related impacts

303-3 Water withdrawal 125

303-4 Water discharge 125

303-5 Water consumption 126

GRI

Waste management and circular economy

GRI 3:Management 3-3 Management of material topics 51, 84, 93 of material topics (2021)

GRI 306: Waste 306-1 Waste generation and significant 93 (2020) waste-related impacts

306-2 Management of significant impacts 93 related to waste

306-3 Waste generated 126

306-4 Waste diverted from disposal 126

306-5 Waste directed to disposal 126

Research, development and product and process innovations

GRI 3:Management 3-3 Management of material topics 18, 44-52, 81-82 of material topics (2021)

Customer satisfaction

GRI 3:Management 3-3 Management of material topics 44-52, 107 of material topics (2021)

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