.I.L.A. S.p.A. ESG Handbook 2025

‌ESG Handbook‌

2025

Based on the FY 2024 Fila Group Annual Report - Consolidated Sustainability Statement

1

‌Colouring the future Since 1920

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.

2

‌Index

• F.I.L.A. Group

  • Our Group

  • Global Presence

  • Our stakeholders

  • Purpose, vision, mission and values

• ESG Strategy

  • ESG roadmap to 2025

  • Strategic Plan 2025-2029

  • Sustainability Plan 2025-2029

  • Target of F.I.L.A. Group

  • Double materiality analysis

  • External recognition and ratings

• Governance

  • Sustainability Governance

  • An effective and sound governance structure

• Employees
• Social
• Environment

3

‌Our Group‌

With a portfolio of 25 iconic brands and a comprehensive range of products for writing, drawing, colouring, modelling, and painting in the School and Fine Art & 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 3,200 employees.

Our company's vocation is production, with 22 specialised factories located across the world, including two in Italy. These factories boast high levels of interchangeability, and vertical integration, allowing us to have full control over the production process.

YEAR FOUNDED

ICONIC BRANDS

BRANCHES

LISTING ON STAR SEGMENT

PRODUCT CATEGORIES

COUNTRIES

EMPLOYEES

PRODUCTION FACILITIES

CONSOLIDATED

ON FIVE

CONTINENTS

REVENUE AT DECEMBER 2024

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‌Global Presence

4

UK

1

Germany

3 5

USA -

Canada France

1 1

2

Mexico

Dominican Republic

2

Italy

China

Countries where we have a direct presence

Countries with factories

F.I.L.A.

Headquarter Number of factories

1

Brazil

1

A rgentina

32 SALES BRANCHES

22 PRODUCTION FACILITIES

5

‌Our

Stakeholders

6

‌7

‌Index‌

• F.I.L.A. Group

  • Our Group

  • Global Presence

  • Our stakeholders

  • Purpose, vision, mission and values

• ESG Strategy

  • ESG roadmap to 2025

  • Strategic Plan 2025-2029

  • Sustainability Plan 2025-2029

  • Target of F.I.L.A. Group

  • Double materiality analysis

  • External recognition and ratings

• Governance

  • Sustainability Governance

  • An effective and sound governance structure

• Employees
• Social
• Environment

8

‌ESG Roadmap to 2025

9

‌Strategic plan 2025-2029

The new five-year Strategic Plan is based on four 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 on November 12, 2024, defines new guidelines for the Group's growth.

10

‌Sustainability plan 2025-2029

Our forward-looking approach is reflected in the new 2025-2029 Sustainability Plan, which further integrates the Sustainable Development Goals (SDGs), outlined in the 2030 Agenda for Sustainable Development, and the "Ten Principles" of the United Nations Global Compact (UNGC), into our business model in a more structured way.

The primary aim of drafting the 2025- 2029 Sustainability Plan, part of the Group's Strategic Plan, is internalizing sustainability topics within every corporate activity.

11

‌Target of

F.I.L.A. Group

In line with the strategy adopted in recent years and the 2025-2029 Sustainability Plan, the F.I.L.A. Group continues to pursue its sustainability targets, which were defined in 2022 and reported for the first time in 2023: six specific short-and medium-term targets.

12

‌Double Materiality Analysis

The F.I.L.A. Group has conducted a double materiality assessment to analyze impacts, risks, and opportunities across the entire value chain, also considering external influences. The analysis was based on two interconnected dimensions: impact materiality, referring to significant effects on stakeholders and the environment, and financial materiality, which considers external sustainability factors that may influence the Group's development and performance. Following EFRAG guidelines (IG 1 Materiality Assessment), the Group identified and assessed IROs (Impacts, Risks, and Opportunities) related to: energy, climate change mitigation, water discharges and consumption, waste, resource inflows and use, health and safety, collective bargaining (including the percentage of workers covered by agreements), human rights, training and skills development, measures against workplace violence and harassment, and work-life balance.

The assessment did not result in changes to the business model or current financial effects. The Group considers its strategy resilient and capable of addressing risks and seizing identified opportunities.

13

‌External

Recognition

14

‌Index‌

• F.I.L.A. Group

  • Our Group

  • Global Presence

  • Our stakeholders

  • Purpose, vision, mission and values

• ESG Strategy

  • ESG roadmap to 2025

  • Strategic Plan 2025-2029

  • Sustainability Plan 2025-2029

  • Target of F.I.L.A. Group

  • Double materiality analysis

  • External recognition and ratings

• Governance

  • Sustainability Governance

  • An effective and sound governance structure

• Employees
• Social
• Environment

  15

  
  
  

  ‌Sustainability

  Governance

  On April 27, 2021, F.I.L.A.'s Board of Directors assigned responsibility for sustainability topics to the Control, Risks and Related Parties Committee.

  COMPOSITION OF THE CONTROL, RISKS AND RELATED PARTIES COMMITTEE

  Gianna Luzzati Donatella Sciuto Annalisa M. Barbera Carlo Paris

  MANAGEMENT SUSTAINABILITY

  COMMITTEE COMPOSITION

  Luca Pelosin Cristian Nicoletti Piero Frova Nicoletta Marsi Raffaella Colombo Claudia Zucchetti

  GUEST PARTIES

  Orietta Casazza Sara Fornasiero Massimiliano Rigo

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  ‌An effective and

  sound governance structure

  BOARD OF DIRECTORS COMPOSITION

  43%

  GROUP SUSTAINABILITY POLICIES

  57%

  43%

  57%

  1. Sustainability Policy

  2. Stakeholder Engagement

     Policy

  3. Environmental Policy

  4. Energy Saving Policy

  5. Sustainable Procurement Policy

  6. Workforce Diversity and Inclusion Policy

  7. Health and Safety Policy

     and Communication

     Policy

     1. Business Development Policy

     2. Anti-Bribery and Anti-Corruption Policy

     3. Responsible Lobbying Policy

     4. Tax Compliance Policy

     5. IT Systems Policy

     Female
     Male
     
     

     29%

     Indipendent Directors
     
     
     Non-Indipendent Directors
     
     

  8. Skills Development Policy 17. IT Security Policy

  9. Product and Process Development Policy

  10. Human Rights and Labour Policy

  11. Responsible Marketing

  18. Policy on the Use of Generative Artificial Intelligence Tools

  71%

  Executive Directors
  
  
  Non-Executive Directors
  
  

  17

  
  
  

  ‌Index‌

• F.I.L.A. Group

  • Our Group

  • Global Presence

  • Our stakeholders

  • Purpose, vision, mission and values

• ESG Strategy

  • ESG roadmap to 2025

  • Strategic Plan 2025-2029

  • Sustainability Plan 2025-2029

  • Target of F.I.L.A. Group

  • Double materiality analysis

  • External recognition and ratings

• Governance

  • Sustainability Governance

  • An effective and sound governance structure

• Employees

• Social
• Environment

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‌Employees

AGE BRACKET

51%

25%

between 31 and 50 (in line with the 2023)

under 30 (26% in 2023)

24% over 51 (23% in 2023)

3,263 EMPLOYEES

(3,371 in 2023)

48%

52%

Female (49% in 2023)

Male (51% in 2023)

WORKFORCE

69%

27%

4%

blue-collar workers (in line with the 2023) white-collar workers (in line with the 2023) managers (in line with the 2023)

WORKFORCE BY GENDER AND GEOGRAPHICAL SEGMENT

HOURS OF HEALTH AND SAFETY TRAINING PROVIDE BY PROFESSIONAL CATEGORY

Rest of the world

Asia Central / South America

65%

27%

8%

blue-collar workers (78% in 2023)

white-collar workers (19% in 2023)

managers (3% in 2023)

North America

Europe

0% 20% 40% 60% 80% 100%

Male

PLANTS

possess ISO 45001 health and safety

management certification 19

‌Index‌

• F.I.L.A. Group

  • Our Group

  • Global Presence

  • Our stakeholders

  • Purpose, vision, mission and values

• ESG Strategy

  • ESG roadmap to 2025

  • Strategic Plan 2025-2029

  • Sustainability Plan 2025-2029

  • Target of F.I.L.A. Group

  • Double materiality analysis

  • External recognition and ratings

• Governance

  • Sustainability Governance

  • An effective and sound governance structure

• Employees

• Social

• Environment

  20

  
  
  

  ‌Social

  As the Group operates in many countries, it seeks, within the scope of its own operations, to promote relationships with the local communities and to contribute to local development.

  +1,9 mln euro

  Donated funds were allocated as follows: to initiatives that promote culture and education, including university conferences, museum support, assistance for schools and teachers, scientific research, healthcare, sustainable fashion, community support and partnerships with volunteer organizations.

  SUPPLIER ASSESSMENT AND MANAGEMENT

  To establish transparent, fair, and ethical business relationships with its suppliers and business partners, F.I.L.A. has defined a "Code of Conduct for Suppliers and Business Partners" which F.I.L.A.'s suppliers are required to sign and adhere to.

  Green Procurement questionnaire to track and examine, through the involvement of suppliers, the main environmental issues of the Supplier Companies.

  21

  
  
  

  ‌Index‌

• F.I.L.A. Group

  • Our Group

  • Global Presence

  • Our stakeholders

  • Purpose, vision, mission and values

• ESG Strategy

  • ESG roadmap to 2025

  • Strategic Plan 2025-2029

  • Sustainability Plan 2025-2029

  • Target of F.I.L.A. Group

  • Double materiality analysis

  • External recognition and ratings

• Governance

  • Sustainability Governance

  • An effective and sound governance structure

• Employees
• Social

• Environment

22

‌Environment

Over the years, the F.I.L.A. Group has increasingly focused on recycling raw materials used in its production processes, wherever technically feasible. In particular, the production of timber slats for pencils involves reusing primary manufacturing rejects-such as undersized slats joined using "finger joints"-as well as narrow timber slats repurposed for the production of art canvases.

To support the environmentally sustainable development of our products, we have implemented an internal protocol aimed at promoting eco-friendly solutions, reducing packaging materials, and progressively enhancing product performance.

The production of plastics derived from plant-based or renewable resources is part of our strategy to reduce CO₂ emissions, a major contributor to greenhouse gases.

Among the first significant steps in this direction are the development of durable school containers, such as Giotto schoolbags, Giotto jars, and the new Giotto Bebè egg-shaped toy container-all made from 100% recyclable plastics sourced from renewable or plant-based materials.

23

‌Environment

possess ISO 14001 environmental certification.

In 2023, a multi-year investment plan was approved with the goal of reducing CO₂ emissions by over 6,000 tonnes per year through the construction of a biomass plant at the Canson SAS paper mill in France, which will become operational at the end of 2025 or beginning of 2026.

During the first year reporting year, proxy data was applied

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‌Consigliere delegato F.I.L.A.‌

Luca Pelosin COO, CHO

Investor Relations F.I.L.A.

Cristian Nicoletti CFO/IR Manager

Sustainability Manager

Claudia Zucchetti

ir@fila.it - (+39) 02 38105206

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