Italian Sea S p A : 2022 Consolidated Non-Financial Statement

About this update from Italian Sea Group S.p.a.

N 2022 CONSOLIDATED F NON-FINANCIAL STATEMENT PURSUANT TO ITALIAN LEGISLATIVE DECREE NO . S 254 OF 2016 CONTENTS Letter from the Chief Executive Officer 02 1. The Italian Sea Group 06 The Italian Sea Group 08 History 10 Significant Events of 2022 15 Brands 14 Group Structure 20 Mission and Values 20 Strategy and Business Model 22 The Pillars of the Strategy 24 Product Research and Innovation 26 2. Sustainability of Tisg 28 Context Analysis 30 Materiality Analysis 32 Priority Matrix 36 The Pillars of The Italian Sea Group's ESG Strategy 37 Results Achieved 38 Sustainability Programme 39 Stakeholders of Tisg 40 Economic Value Produced and Distributed to stakeholders 42 Taxonomy 44 Annexes 48 3. Governance, Ethics and Integrity 45 Corporate Governance 54 Governance and Control Bodies 55 Instruments of Governance and Control 63 Anti-corruption 67 Policy on the Protection of Human Rights 67 Policy on the Protection of Diversity and Inclusion 67 Sustainability Governance 68 4. 5. 6. 7. Environment 72 Environment Policy 74 Facilities and Production Processes 76 Environmental Performance 78 Energy Consumption and Renewable Sources 79 Water Withdrawal 82 Water Discharges 83 Waste Management 83 Emissions into the Atmosphere 85 Greenhouse Gas Emissions 85 Our People 88 Staff Management Policy 90 Staff Composition 90 Contract Type 92 Recruiting Activities 93 Training and Career Development 94 Employee Well-being 96 Corporate Welfare 96 Equal Opportunity 97 Parental Leave 97 Workplace Health and Safety 98 Policy 98 Safety Organization 99 Accident Risk Assessment 99 Staff Training 99 Injouries and Occupational Diseases 100 Value Chain Management 102 Ethical Supply Chain Management 104 Customer Satisfaction 106 Quality Management System 107 Sustainability for the Territory 108 Methodological Note 114 GRI Context Index 118 LETTER FROM THE CHIEF EXECUTIVE OFFICER Dear Stakeholders, During 2022 our Group achieved important targets and recorded significant growth. We reached enthusiastic goals from a commercial and financial standpoint, along with a solid global presence worldwide; we strengthened the positioning of our brands in the luxury segment thought even stronger partnerships with some of the most acknowledged brands globally; we successfully relaunched Perini Navi and Picchiotti, some of the most prestigious brand names in international yachting. These achievements are the result of the strong joint effort from our managers, employees, suppliers, partners, investors - all active part of a virtuous system based on collaboration and mutual respect. Nevertheless, the success achieved so far does not divert our attention from the daily commitment to our job, to the sense of responsibility we feel towards the community in which we operate and to the consciousness that the world presents even more ambitious challenges: from the fight against climate change to the value of diversity and inclusion and to the pressing need for a sustainable development growth system from an economic, environmental, and social perspective, aimed at continuing to benefit all our stakeholders and the whole community. At The Italian Sea Group Social Responsibility is not only a guiding principle, but it is the strategic foundation of our business, being integrated in each and every area and in every choice that we daily make. Our ESG strategic pillars include a solid governance system, the centrality of the wellbeing and safety of our employees, a very careful management of energy and water consumption, along with an intense R&D activity focused on finding and implementing technological solutions to significantly limit the environmental impact of yachts. During 2022 new important milestones has enriched our story: in July we delivered Kensho, a 75 metre motor yacht already representing a benchmark for sustainable yachting; for the Marina di Carrara HQ, we sourced energy exclusively coming from renewable sources and we completed the coverage of our sheds with photovoltaic panels, saving the emission of over 1,000 tons of CO2 annually. To support the liquidity of our supply chain we signed reverse factoring agreements with major banking institutions with a total plafond of over 42 million Euros. Through our TISG Academy we strengthened the collaboration with Trieste, G C I O V A N N I O S T A N T I N O 02 03 Genoa and La Spezia Universities to offer employees, suppliers, and students training courses. Furthermore, we have structured a solid Sustainability governance and a policy system on the respect of human rights, diversity, environment and dialog with our shareholders. In this Non-Financial Report you will find detailed information on what we have achieved so far and what we commit to achieve in the next three years. We have a very clear strategy, developed after carefully listening to our stakeholders' needs and a broad roadmap with ambitious goals: environment, governance, social impact. Among the many initiatives in the pipeline, we will continue to work to further reduce the environmental impact of our business, by increasing the use of renewable-source energy and compensating the already limited Scope 1 and Scope 2 emissions. We will invest to make our supply chain even more sustainable and we will strengthen the centrality of the wellbeing and development of our employees - in absolute gender equality - by organising, among other activities, annual appointments to listen to their needs and to plan improvement initiatives. The achievement of ESG targets will be one of the parameters of the Long-Term Incentive Plan of our management. I wish to thank the big "The Italian Sea Group" family, operating in all our facilities and offices at all managerial and operational levels, who always work with great passion and competence. I want to thank you Stakeholders for continuing to believe in our "factory of emotions": I am sure that, together, we will keep building sustainable value for the years to come. F O U N D E R A N D C E O And, last but surely not for importance, I wish to thank from the bottom of my heart my dear friend Giuseppe Taranto, the Manager who has supported me in thirty years of professional but above all personal relationship, based on deep respect and brotherhood. We will forever cherish the memory of his elegant and humane approach and we will continue to express those values of respect, responsibility, and dedication that he deeply cared for. 04 05 1 THE ITALIAN SEA GROUP

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