Reporting Standards applied
Now in its seventh edition, the Consolidated Disclosure of Non-financial Information (hereinafter also “Non-Financial Information”, “Disclosure” or “NFI”) of the Brembo Group (hereinafter also “Brembo”, “Group”) illustrates the performances and actions taken in order to manage environmental, social and employee matters, respect for human rights, anti-corruption and bribery matters, so as to provide stakeholders with access to accurate, thorough and transparent view of the Company’s strategies, activities, performance and the Group’s results in its pursuit of economic growth and business development.
This Disclosure, published annually, has been written in accordance with Italian
Legislative Decree No. 254/2016 as amended and in compliance with the
Sustainability Reporting Standards published by the
Global Reporting Initiative -
GRI 2021 (with reference to the most recent update thereof), which became effective as of 1 January 2023. These Standards are currently the most widespread and recognised on an international level regarding non-financial reporting.
In the reporting process, with a view to a broader disclosure towards stakeholders, the Group has taken into account the indications contained in the “Measuring Stakeholder Capitalism: Towards Common Metrics and Consistent Reporting of Sustainable Value Creation” published in September 2020 by the
World Economic Forum and the indicators put forward by the
SASB standards.
The information included in the non-financial report reflects the principle of materiality or relevance, an element provided for by reference standards and characterising the GRI standards: the issues discussed within the Disclosure have been identified following the analysis and assessment of the most significant impacts on economy, people and environment, including human rights.
It is necessary to point out that a materiality analysis, to be valid for the purposes of the non-financial reporting of this financial year, does not take into account the Outside-in perspective (financial materiality ) since this procedure is on a totally voluntary basis and not subject to audit (ref. CSRD Directive).
For disclosures published following 1 January 2023, Brembo must include in the NFI the information required by the so-called “EU Taxonomy” legislation with regard to environmentally sustainable activities carried out by the Group. In relation to this, please refer to paragraph “THE EU TAXONOMY REGULATION (No. 2020/852)”. In compliance with
Article 10 of the Commission Delegated Regulation (EU) 2021/2178 of 6 July 2021, such information for 2023 relates to the proportion, with respect to the total, of turnover, capital expenditure and operating expenditure of the Group associated with Taxonomy-eligible and -aligned activities with reference to the objectives of climate change mitigation, climate change adaptation, the sustainable use and protection of water and marine resources, the transition to a circular economy, pollution and prevention control and the protection and restoration of biodiversity and ecosystems, as provided for by the Annexes to the Commission
Delegated Regulation (EU) 2021/2139 of 4 June 2021, in addition to some qualitative information.
Taxonomy
In line with the goals of the UN 2030 Agenda, with the aim of achieving climate neutrality by 2050, the European Union has defined a series of strategies and initiatives aimed at directing capital flows towards investments in assets and activities deemed sustainable. In this regard, European institutions therefore introduced the
Regulation (EU) 2020/852 (hereafter also referred to as the “Regulation”), which aims at providing
reliable and common criteria and
tools to identify sustainable economic activities, and at
ensuring financial institutions and investors greater comparability regarding the degree of environmental-sustainability of an investment associated with that activity.
In particular, the Regulation introduced a unified classification system or “taxonomy”, of
economic activities that, in order to qualify as “environmentally sustainable” must contribute to achieving one or more among the following six
environmental objectives:
- Climate change mitigation
- Climate change adaptation
- The sustainable use and protection of water and marine resources
- The transition to a circular economy
- Pollution prevention and control
- The protection and restoration of biodiversity and ecosystems
Specifically, according to the Regulation, economic activities are broken down into:
-
taxonomy-eligible: an economic activity is taxonomy-eligible if it is listed in the delegated acts of the Regulation, in correspondence with one or more environmental objectives. If taxonomy-eligible, the activity has the potential to contribute substantially to the objective of reference;
-
taxonomy-aligned: an economic activity is taxonomy-aligned if, in addition to being taxonomy-eligible, it is carried out in compliance with the technical screening criteria and the minimum safeguards. Accordingly, it has to:
- meet the
substantial contribution criteria defined by the Regulation for each activity. On a scientific basis, they describe the conditions to be met to substantially contribute to reaching the environmental objectives;
- Do No Significant Harm (DNSH) to any of the other environmental objectives to which the economic activity does not substantially contribute;
- comply with the
minimum safeguards, ensuring respect for human rights and international legislation on workers’ rights, taxation, fair competition and bribery.
If an activity is taxonomy-aligned, it may thus qualify as “environmentally sustainable”.
Compliance assessment with the regulation
As of 2021, in accordance with the Regulation, Brembo discloses the information required associated with the proportion of the turnover, CapEx and OpEx related to taxonomy-eligible activities.
In
2023, the
Brembo Group continued the analysis of its taxonomy-eligible economic activities in order to assess their
effective contribution to the aforementioned six objectives and understand if and which of these can also be considered to be taxonomy-aligned. Moreover, a
mapping of any CapEx and OpEx was made in relation with the purchase of products or services referring to taxonomy-eligible and/or taxonomy-aligned economic activities and to individual measures enabling activities to maintain a low level of emissions.
Eligibility analysis
The analysis resulted in the identification of the following economic activities performed by Brembo, associated with the climate change objectives:
-
3.8 Manufacture of aluminium;
-
3.9 Manufacture of iron and steel;
-
9.1. Close to market research, development and innovation.
The activities identified, performed by Brembo at its sites, do not generate a direct turnover for the Group.
Moreover, an analysis of any CapEx and OpEx was also made in relation with the purchase of products or services referring to taxonomy-eligible economic activities and individual measures enabling the activities to reduce their level of emissions.
Alignment analysis
In order to assess
alignment with the climate change mitigation and climate change adaptation objectives, for each taxonomy-eligible activity identified analyses were thus carried out to check compliance with the substantial contribution criteria and the “Do No Significant Harm” criteria by each objective. Minimum safeguards Lastly, Brembo analysed compliance with the minimum safeguards, in accordance with the provisions of Article 18 of the Regulation. In particular, the OECD Guidelines for Multinational Enterprises, the United Nations Guiding Principles on Business and Human Rights and the principles and rights set out in the eight core conventions identified in the International Labour Organisation's Declaration on Fundamental Principles and Rights at Work and the International Charter of Human Rights were taken into consideration.
Specifically,
nine categories were assessed: human rights policies, human rights due diligence and risk assessment, human rights impact management, grievance mechanisms, consumer interests, anti-corruption, competition and taxation.
Brembo ensures that the topics relating to minimum safeguards are dealt with through the adoption of specific tools such as the company policies, guidelines and organisational and operational mechanisms. Following this analysis, the Group verified that it had implemented all the safeguards provided for in Article 18 of the Regulation, while acknowledging the need to formalise some specific policy statements to ensure full compliance with the requirements of the OECD Guidelines and UN Guiding Principles.
