F.i.l.a. - Fabbrica Italiana Lapis Ed Affini S.p.a.MIL: FILA

.I.L.A. S.p.A. ESG Handbook 2024

· Issued by F.i.l.a. - Fabbrica Italiana Lapis Ed Affini S.p.a.

ESG Handbook

September 2024

Based on the FY 2023 Sustainability Report, NOT reflecting the deconsolidation of DOMS Industries

Colouring the future Since 1920

"My grandfather's business began in Florence and expanded to Sicily. My father's stretched from Milan to Sicily. Today, our business operates from Shanghai to San Francisco, with India being our second largest market, after the USA.

However, our roots are firmly planted in Italy, despite the global journey we have made. Over the years, we have adapted to evolving times and technologies, incorporating sustainable materials and practices into our business, while holding true to our key values: colour and craftsmanship. We like to picture an artist climbing a hill with her tools, ready to capture the beauty of the landscape before her. At F.I.L.A., we believe our future lies on that hill."

Massimo Candela,CEO of F.I.L.A.

Index

  • F.I.L.A. Group
    • Our Group
    • Brands and products categories
    • Our stakeholders
    • Purpose, vision, mission and values
  • ESG Strategy
    • ESG roadmap to 2023
    • Strategic Plan 2021-2025
    • Sustainability Plan 2021-2025
    • F.I.L.A.'s targets
    • Materiality analysis
    • External recognition and ratings
  • Sustainability Governance
  • Employees
  • Social
  • Environment

.

Our Group - June 2024

W i t h a portfolio of 25 iconic brands and a comprehensive range of products for writing, drawing, colouring, modelling, and painting in the School and Fine A r t & Crafts segment, the F.I .L .A. Group has become a major global player in the world of colour. Our products are distributed in 150 countries on five continents, with 32 direct subsidiaries and a workforce of over 3,400 employees.

Our company's vocation is production, with 22 specialised factories located across the world, including t w o in Italy. These factories boast high levels of interchangeability, and vertical integration, allowing us to have full control over the production process.

The parent company F.I.L.A. S.P.A. has been listed on the EXM - Euronext STAR segment of the Italian Stock Exchange since November 2015.

1920

YEAR

FOUNDED

25

ICONIC

BRANDS

32

BRANCHES

ON FIVE

CONTINENTS

2015

+3,400

LISTING ON STAR

EMPLOYEES

SEGMENT

+20 22

PRODUCTPRODUCTION

CATEGORIESFACILITIES

+150 €779.2m

COUNTRIES CONSOLIDATED

REVENUE AT DECEMBER

2023

Global Presence - June 2024

4

UK

1

Germany

3

5

USA -

France

Canada

1

2

Dominican

2

Republic

Italy

Mexico

Countries where we have

a direct presence

Countries with

1

factories

F.I.L.A.

Brazil

Headquarter

Number of factories

1

A rgentina

32 SALES BRANCHES

22 PRODUCTION FACILITIES

Wood

Plantation

2

China

Our Stakeholders

The F.I.L.A. Group is committed to open and transparent communication

with all of its stakeholders

Purpose

Inspire and enrich the lives of everyone through creative and artistic thinking.

Vision

Become the go-to solution for all those seeking to express their creativity, offering the broadest portfolio of brands and products for art and creative education.

.

Mission

To produce and create everything needed to shape ideas, to offer appealing, accessible and safe products, to nourish simple gestures, but also great creative passions, allowing everyone to express themselves at every point in their lives and across the world.

Values

  • Legacy - we have a great tradition and a long history that inspires our future and creates a sense of belonging;
  • Solidity - we focus closely on return on investment to ensure the Group's continual growth;
  • Integrity - we always act with transparency, fairness, honesty and consistency;
  • Responsibility - we operate with respect for the people we deal with and the environment to create sustainable value;
  • Excellence - we are committed to high levels of quality, service, safety and performance.

ESG Roadmap to 2023

2017

Reporting pursuant to Legislative Decree 254/2016

2020

2021

2022

•

2021-2025

•

Sustainability Governance

•

Short-medium-and long

Strategic Plan

•

Structured and systematic

term objectives

•

2021-2025

pathway Stakeholder

• Group adopt a Non

Sustainability Plan

Engagement

Financial Reporting

• We have set out

•

Published the first

Manual and a hard

the Group's

Sustainability Report

close was introduced in

purpose, reviewed

including Non Financial

October, in order to

our vision,

Statement

improve the reporting

mission, and

•

Significant update and

process

values, and

integration of the Group's

•

Introduced social and

updated our

sustainability policies

environmental

Ethics Code

•

EU Taxonomy (Regulation

objectives in the

2020/852)

remuneration policies

of executive directors

and management

2023

  • Approved a multi- year investment plan to reduce direct CO2 emissions and water withdrawals
  • Half year reporting
  • Impact Assessment

Strategic plan 2021-2025

Our five-year Strategic Plan is based on five levers, among which - as testament to our comprehensive ESG vision - is the Sustainability Plan. The Strategic Plan was approved by the Parent's Board of Directors at the end of 2020 and was subsequently presented to the senior management teams of its major subsidiaries who circulated the Plan within their organizations.

Company analysis