Sustainability according to Brembo

Our vision of Corporate Social Responsibility

Cristina Bombassei, Chief Corporate Social Responsibility Officer, explains Brembo’s vision of Corporate Social Responsibility and its importance in the introductory letter to the 2022 Group Sustainability Report:

”Dear Stakeholders,

I am pleased to present the 2022 Consolidated Disclosure of Non-Financial Information, through which the Brembo Group shares its vision for a more sustainable future and reports on its ESG objectives, activities and results.

The year 2022 was highly satisfactory for Brembo. The Company achieved unprecedented results despite the monumental challenges and transformations, both globally and in the automotive sector. As you will see when reading this document, our strategic approach to environmental, social and governance aspects has not lessened. These elements have been part of our way of doing business for over 60 years now, and we intend to increasingly focus on them.

For this reason, we have decided to adopt — two years ahead of the mandatory adoption date — the double materiality methodology, as defined by the European Commission’s Corporate Sustainability Reporting Directive. This allows us to assess even more effectively how sustainability requirements influence our Group's operations and how they impact people, the communities in which we operate and the environment.

In 2022, which was such an extraordinary year for us, our people were once again the main architects of our virtuous development. Our Group continues to grow: we are approximately 15,000 people in 23 production sites and sales offices in 15 countries around the world. It is to each of them that we dedicate our constant commitment to making Brembo a place not only where to promote talent, but also where the values of responsibility, respect, diversity and inclusion remain at the core of our work together.

With our global team, we follow the course set out by the Group's medium- and long-term strategy, which is also reflected in our products. In fact, we have forged ahead with the development of green solutions and in 2022 we unveiled important innovations to the market, such as the Greenance product line — a new range of brake discs and pads characterised by a lower environmental impact.

This strategy is supported by R&D investments, which remain key for us: we are increasingly focused on using more sustainable materials, recycling existing ones, and adopting solutions aimed at further improving our position as a responsible business. The ideas for achieving this come both from inside and outside the Group. Every year, Brembo collects new ideas from all the areas of the world where it operates. When these ideas translate into tangible projects, we reward them, particularly with the Brembo Sustainability Awards, now in their fourth edition. Outside Brembo, we are increasingly exploring innovation. In 2022, we set up Brembo Ventures, a unit dedicated to investing globally in technological start-ups that can bring innovation to key areas, including energy efficiency and sustainable processes.

Furthermore, we are firmly convinced that we must also play our part in ensuring responsible production. This is why we are committed to a path towards the ambitious goal of guaranteeing net-zero emissions by 2040. For years, we have been working to promote more sustainable industrial processes on several fronts. Emissions generated at our production sites and offices worldwide continued to decrease, and we recorded a decline of approximately 16% in 2022 compared to 2021. At the same time, the use of electricity from renewable sources rose, reaching an unprecedented level in 2022 and accounting for 69% of the total. Three countries even achieved a 100% figure. In addition, we are committed to encouraging an ever-wider engagement of our supply chain to ensure that it fully adheres to our sustainability culture.

However, there could be no sustainable development if we did not also take into account the social dimension of our business. This entails not only the aforementioned commitment to our people, but also to the communities in which we operate. For years, we have been supporting and launching social projects in several areas of the world. In 2022, witnessing the dramatic consequences of the war in Ukraine, we felt it our duty to help the affected populations. Among the various projects launched, I want to mention Safe Haven in Poland, with which we welcomed and gave support to those forced to leave their country.

Our ambition to be responsibly active is an approach that, for five years now, has been driven by the UN 2030 Agenda, which calls on us to help achieve the 17 Sustainable Development Goals and which will continue to guide us along our path as we move forward. The numbers, results and projects described in this document are the outcome of our constant and continuous efforts and confirm that the adoption of a clear and responsible commitment generates concrete actions for the benefit of people, communities and the environment.

We are therefore convinced that the ESG aspects are growth-enabling factors for our Group, as well as for the entire economy: they will have to increasingly become a key element in decisions that have an impact on our Companies.”

The United Nations Global Compact

Dear Stakeholders,

I am pleased to announce that in 2022 as well Brembo S.p.A. confirmed its commitment towards the 10 United Nations Global Compact Principles. Our aim is to adopt the 10 Principles on a permanent basis into our business strategy, and even more so in the culture of our organisation. In this 2022 Consolidated Disclosure of Non-Financial Information, we illustrate the actions we have implemented, demonstrating how our commitment to corporate social responsibility and sustainability is becoming increasingly broad and effective year on year.

Chief Executive Officer, Brembo S.p.A.

Daniele Schillaci

Since 2021, Brembo S.p.A. has been a participant in the United Nations Global Compact, the world's largest strategic corporate citizenship initiative that arose from the desire to promote a sustainable global economy, respectful of human and labour rights, environmental protection and the principles of anti-corruption.

Promoted by former UN Secretary Kofi Annan, more than 21,000 companies from 162 countries have so far joined the Global Compact, creating a new model for global collaboration.

The UN Global Compact requires companies to share, support and apply in their sphere of influence a set of fundamental principles on human rights, labour standards, environmental protection anti-corruption.

By participating in this initiative, Brembo S.p.A. has joined a universal network of companies with a long-term strategic vision, oriented towards the promotion of the culture of sustainability, innovation and reporting.

The Global Compact provides an opportunity to share strategies and good business practices in response to global challenges, to use ESG-related management tools and resources and to be involved in specific working groups.

In 2022, together with 29 other businesses, Brembo contributed to drafting the Position Paper "Sustainable Supply Chain Management: responsibility and opportunity for businesses", presented in Milan at the CSR and Social Innovation Exhibition and, internationally, at the 27th United Nations Conference on Climate Change – COP27 in Sharm El Sheikh, Egypt.

The Paper enhances the commitment of the private sector participating in the UN Global Compact and identifies the responsibilities and opportunities to engage all players across the supply chain in corporate sustainability strategies.

Brembo S.p.A.’s participation in the Global Compact testifies to its long commitment to sustainability, which over the years has featured an increasing focus on numerous fronts and adherence to the 17 Sustainable Development Goals defined by the UN 2030 Agenda.

Brembo’s Purpose

Electrification, digitalisation, autonomous driving and environmental sustainability are macro-trends that have been at the centre of the automotive world and have been shaping the strategies of the market’s main players for some years.

Within this scenario, Brembo has been pursuing its mission of becoming a Solution Provider by proactively rising to the challenges posed by the ongoing transformation, focusing on the needs and desires of the new generations, which will be the users of tomorrow.

Brembo continues to invest significantly in innovation, driven by its vision “Turning Energy into Inspiration”, which encourages the Group to extend its sphere of influence to embrace energy management in its broader meaning, not only in terms of components, but also in its role as authoritative systems provider. In addition to innovative hydraulic and mechanical components, innovation is also applied in terms of software and artificial intelligence: this combination allows to aim at a high added-value product and service integration in order to anticipate the new mobility paradigms.

This approach is also pursued in the processes that Brembo is implementing to generate and developing new ideas, through a path founded on three pillars — Digital, Global and Cool Brand — that set the growth direction for the forthcoming future.

Digital

The world has entered the era of artificial intelligence applications focusing on data processing. The ability to analyse and manage data is a crucial skill for continuing to grow and create innovation. Accordingly, Brembo has set itself an ambitious goal: becoming a company that, alongside the production of braking systems, is able to develop and offer all-round solutions to its customers through the widespread dissemination of a solid data culture within the Group and an increasingly data-driven approach.

For further details on Brembo’s transformation into a Solution Provider, reference should be made to paragraph “1.2 Digital Transformation Programme: from Product Business to Solution Provider” of the 2022 Non-Financial Group Disclosure.

Global

Brembo has long ago embarked upon its decentralisation path and has now become a Group operating in 15 countries worldwide. Within this context, the Global Pillar aims to balance the Group’s international footprint, not only from a commercial standpoint, but also in terms of technology and innovation, by developing and encouraging excellence at local level for the benefit of a global organisation whose mindset is based on multiculturality, valuing of diversity and inclusion.

Cool brand

Brembo does not set limits on creativity and considers it essential to continuously engage in strengthening its brand, anchoring it to new trends that are reconfiguring mobility in line with the values and sensibilities of the new generations, especially Generation Z. The objective is thus to identify their passion, needs and tastes, and translate them into a unique brand experience able to generate tangible solutions.

The year 2022 saw the implementation of several projects as part of the Cool Pillar: Hackathon was the first to be launched, as described in the following pages.

Last but not least, at the heart of the Group's strategic vision there is also an overarching commitment to sustainability that has become a modus operandi within Brembo, permeating all its activities processes and products. This sustainability-driven approach is increasingly present also in the relationship with its employees, with its supply chain and in the local areas in which the Group operates.