Reporting Standards

Reporing Standards Applied

This Consolidated Disclosure of Non-Financial Information for 2019, in accordance with Legislative Decree No.254/2016, of the Brembo Group is intended to provide an accurate, thorough and transparent view of the Group’s strategies, actions and results in its pursuit of economic growth and business development, while taking account of the expectations of the stakeholders involved and seeking constant improvement of the environmental and social impacts of its activities.

This disclosure therefore contains a description of the company’s business model, information on the policies applied concerning the aspects mentioned by the Decree and those considered to be important for Brembo, the results arising from such policies, the main risks connected to such aspects and the related risk management policies.

The information was selected based on the process of materiality analysis in accordance with the Sustainability Reporting Standards published in 2016 by the Global Reporting Initiative (GRI) (Core Option) adopted as the standard of reference for the preparation of this document.

Reporting Process

The preparation of the 2019 Consolidated Disclosure of NonFinancial Information is a real annual reporting process, subject to inspection, analysis and approval by several parties. In fact, the document is:

• prepared by the Chief CSR Officer and the relevant work team, which coordinate and involve all the main company functions in the phase of collecting, analysing and consolidating data, with the task of checking and validating — each with regards to their respective area of competence — each information included in the Disclosure of Non-Financial Information, using the new software implemented by the Group;

• approved by the Board of Directors, which meets to approve the draft financial statements, after having been assessed by the CSR Steering Committee which, through the Chief CSR Officer, presents it to the Audit, Risk & Sustainability Committee and, insofar as it is competent, to the Supervisory Committee for its examination and assessment. Brembo’s Directors are responsible for ensuring that the Consolidated Disclosure of Non-Financial Information is written and published in accordance with current legislation. Once it has been approved by the governing body and within the terms provided for the presentation of the draft Financial Statements, the draft Consolidated Disclosure of NonFinancial Information made available to the auditors (Board of Statutory Auditors and Independent Auditors);

• subject to limited audit by EY S.p.A., therefore the responsibility for the data and information lies solely with the Brembo Group managers;

• made available to Shareholders and the public within the same terms and using the same methods provided for the presentation of the draft Financial Statements;

• published on and downloadable from the corporate website.

Reporting Principles

The following principles have been taken into consideration in defining and reporting the contents of the Consolidated Disclosure on Non-Financial Information:

GRI table of contents ‘in accordance’ – core option

GRI ID	Disclosure	Page number or disclosure
GENERAL STANDARD DISCLOSURES (2016)
ORGANIZATION PROFILE (2016)
102-1	Name of the organisation	9
102-2	Activities, brands, products, and services	15, 22
102-3	18
102-4	Location of operations	18 - 19
102-5	Ownership and legal form	18, 166 , Corporate Governance and Ownership Structure Report; Annual Report
102-6	Markets served	15, 20 - 21
102-7	Scale of the organization	14, Annual Report
102-8	Information on employees and other workers	76, 80 – 82, 158, 159
102-9	Supply chain	98 – 99
102-10	Significant changes to the organization and its supply chain	As of 30 June 2019, Brembo decided to discontinue its industrial operations at the Buenos Aires plant. As a result, the subsidiary Brembo Argentina S.A. will be placed in liquidation. Brembo took this decision as it was impossible to boost new projects because of the sharp downtrend experienced by the Argentinian automotive sector and its quite discouraging recovery prospects.
102-11	Precautionary principle or approach	68 – 70
102-12	External initiatives	The Group does not adopt any codes and principles that are external to the organisation. However, the Group follows the International Labour Standards set out in the fundamental conventions of the International Labour Organisation (ILO).
102-13	Membership of associations	40 – 43
STRATEGY (2016)
102-14	Statement from senior decision-maker	6 – 7
102-15	Key impacts, risks, and opportunities	70 - 73 , 113, 116 - 118
ETHICS AND INTEGRITY (2016)
102-16	Values, principles, standards, codes of conduct and codes of ethics	31, 62 - 65
102-17	Description of mechanisms for reporting about non-ethical and unlawful behaviour	64, 67, 82
GOVERNANCE (2016)
102-18	Governance structure	29, 54 - 62, 158, Corporate Governance and Ownership Structure Report
102-19	Delegating authority	28 - 30
102-20	Executive-level responsibility for economic, environmental, and social topics	28 - 30
102-22	Composition of the highest governance body and its committees	54 - 56, 58 - 59, 158 Corporate Governance and Ownership Structure Report
102-23	Chair of the highest governance body	58, 158 Corporate Governance and Ownership Structure Report
102-24	Nominating and selecting the highest governance body	55 - 57, Corporate Governance and Ownership Structure Report
102-26	Role of highest governance body in setting purpose, values, and strategy	55 - 56
102-27	Collective knowledge of highest governance body	58
102-28	Evaluating the highest governance body’s performance	57 , Corporate Governance and Ownership Structure Report
102-30	Effectiveness of risk management processes	68 - 69
102-31	Review of economic, environmental, and social topics	29, 55 - 56
102-32	Highest governance body’s role in sustainability reporting	9, 29 , 167
102-33	Communicating critical concerns	29, 63, Corporate Governance and Ownership Structure Report
102-35	Remuneration policies	56, Remuneration Report
STAKEHOLDER ENGAGEMENT (2016)
102-40	List of stakeholders groups	36
102-41	Collective bargaining agreements	77
102-42	Identifying and selecting stakeholders	36
102-43	Approach to stakeholder engagement	37 - 39
102-44	Key topics and concerns raised	37 - 39, 114 - 115
REPORTING PRACTICE (2016)
102-45	Entities included in the consolidated financial statements	166, Annual Report
102-46	Defining report content and topic Boundaries	44 - 46, 168 - 169
102-47	List of material topics	45 - 49
102-48	Restatements of information	Any changes to the information provided in previous documents have been duly identified in the text through related explanatory notes.
102-49	Changes in reporting	45
102-50	Reporting period	9, 167
102-51	Date of most recent report	9. The 2018 Consolidated Disclosure of Non- Financial Information (in accordance with Legislative Decree No. 254/2016) was published on 23rd March 2019.
102-52	Reporting cycle	166, 167
102-53	Contact point for questions regarding the report	9
102-54	Claims of reporting in accordance with the GRI Standards	9, 166
102-55	GRI content index	171 - 177
102-56	External assurance	167, 179 - 181
CATEGORY: ECONOMIC PERFORMANCE
ASPECT: ECONOMIC PERFORMANCE (2016)
103-1, 103-2, 103-3	Management approach	46 - 49, 146 - 148, 169
201-1	Direct economic value generated and distributed	147
201-4	Financial assistance received from government	147
ASPECT: MARKET PRESENCE (2016)
103-1, 103-2, 103-3	Management approach	46 - 49, 71 - 72, 80 - 82, 169
202-2	Proportion of senior management hired from the local community	82
ASPECT: PROCUREMENT PRACTICE (2016)
103-1, 103-2, 103-3	Management approach	46 - 49, 98 - 99, 169
204-1	Proportion of spending on local suppliers	98 - 99
ASPECT: ANTI-CORRUPTION (2016)
103-1, 103-2, 103-3	Management approach	46 - 49, 62 - 63, 67, 72, 169
205-2	Communication and training about anti-corruption policies and procedures	67, Corporate Governance and Ownership Structure Report
205-3	Confirmed incidents of corruption and actions taken	67
ASPECT: ANTI-COMPETITIVE BEHAVIOUR (2016)
103-1, 103-2, 103-3	Management approach	46 - 49, 64, 169
206-1	Legal actions for anti-competitive behaviour, anti-trust, and monopoly practices	64
CATEGORY: ENVIRONMENTAL PERFORMANCE
ASPECT: ENERGY (2016)
103-1, 103-2, 103-3	Management approach	46 - 49, 70 - 71, 128 - 133, 169
302-1	Energy consumption within the organisation	133
302-4	Reduction of energy consumption	133
ASPECT: WATER AND EFFLUENTS (2018)
103-1, 103-2, 103-3	Management approach	46 - 49, 70 - 71, 138 - 139, 169
303-1	Interactions with water as a shared resource	138 - 139
303-2	Management of water discharge related impacts	138 - 139
303-3	Water withdrawal	139
303-4	Water discharge	140
303-5	Water consumption	140. Water storage does not have a significant impact in relation with the use of water resources
ASPECT: EMISSIONS (2016)
103-1, 103-2, 103-3	Management approach	46 - 49, 70 - 71, 128 - 130, 134 - 137, 169
305-1	Direct (Scope 1) GHG emissions	136
305-2	Energy indirect (Scope 2) GHG emissions	136
305-3	Other indirect (Scope 3) GHG emissions	136
305-5	Reduction of GHG emissions	134 - 135
305-7	Nitrogen oxides (NOX), sulphur oxides (SOX), and other significant air emissions	137
ASPECT: EFFLUENTS AND WASTE (2016)
103-1, 103-2, 103-3	Management approach	46 - 49, 70 - 71, 130, 141 - 142, 169
306-2	Waste by type and disposal method	141
306-3	Significant spills	In 2019, only the Disk Mapello plant reported a 26.62 mc spill. The spill involved the ecological area and the square in front of it, and did not have a significant impact.
ASPECT: ENVIRONMENTAL COMPLIANCE (2016)
103-1, 103-2, 103-3	Management approach	46 - 49, 65, 70 - 71, 128 - 130, 169
307-1	Non-compliance with environmental laws and regulations	In 2019, Brembo received three pecuniary fines due to non-compliance with environmental laws and regulations for a total amount of € 208 thousand. Said fines referred to the BNBS plant in China, the Homer foundry in the United States, and the Dąbrowa foundry in Poland.
ASPECT: SUPPLIER ENVIRONMENTAL ASSESSMENT (2016)
103-1, 103-2, 103-3	Management approach	46 - 49, 71, 99 - 102, 169
308-1	New suppliers that were screened using environmental criteria	98, 101
CATEGORY: SOCIAL PERFORMANCE
ASPECT: EMPLOYMENT (2016)
103-1, 103-2, 103-3	Management approach	46 - 49, 71 - 72, 76 - 79, 82 - 83, 169
401-1	New employee hires and employee turnover	77 - 78, 160
ASPECT: OCCUPATIONAL HEALTH AND SAFETY (2018)
103-1, 103-2, 103-3	Management approach	46 - 49, 65 - 66 , 71, 88, 95, 169
403-1	Occupational health and safety management system	88 - 89
403-2	Hazard identification, risk assessment, and incident investigation	88 - 89
403-3	Occupational health services	93 - 95
403-4	Worker participation, consultation, and communication on occupational health and safety	91 - 92
403-5	Worker training on occupational health and safety	93 - 95
403-6	Promotion of worker health	92 - 95
403-7	Prevention and mitigation of occupational health and safety impacts directly linked by business relationships	88, 100
403-8	Workers covered by an occupational health and safety management system	88 - 89
403-9	Work-related injuries	88 - 89, 161 - 164
403-10	Work-related ill health	90, 162, 165
ASPECT: TRAINING AND EDUCATION (2016)
103-1, 103-2, 103-3	Management approach	46 - 49, 71 - 72, 84 - 87, 91 - 92, 169
404-1	Average hours of training per year per employee	85
404-3	Percentage of employees receiving regular performance and career development reviews	87
ASPECT: DIVERSITY AND EQUAL OPPORTUNITY (2016)
103-1, 103-2, 103-3	Management approach	46 - 49, 61, 80 - 82, 169
405-1	Diversity of governance bodies and employees	56, 60, 81, 158
ASPECT: NON-DISCRIMINATION (2016)
103-1, 103-2, 103-3	Management approach	46 - 49, 64, 80 - 82, 169
406-1	Incidents of discrimination and corrective actions taken	82
ASPECT: HUMAN RIGHTS ASSESSMENT (2016)
103-1, 103-2, 103-3	Management approach	46 - 49, 66- 67, 71, 84, 169
412-2	Employee training on human rights policies or procedures	84
ASPECT: SUPPLIER SOCIAL ASSESSMENT (2016)
103-1, 103-2, 103-3	Management approach	46 - 49, 71, 99 -102, 169
414-1	New suppliers that were screened using social criteria	98, 101
ASPECT: PUBLIC POLICY (2016)
103-1, 103-2, 103-3	Management approach	46 - 49, 169, Code of Ethics
415-1	Political contributions	In 2019, Brembo did not grant political or financial contributions, nor contributions in kind.
ASPECT: CUSTOMER HEALTH AND SAFETY (2016)
103-1, 103-2, 103-3	Management approach	46 - 49, 72, 119 -123, 169
416-1	Assessment of the health and safety impacts of products and services categories	119 - 120
ASPECT: CUSTOMER PRIVACY (2016)
103-1, 103-2, 103-3	Management approach	46 - 49, 64, 72, 169
418-1	Substantiated complaints regarding breaches of customer privacy and losses of customer data	64
MATERIAL TOPICS THAT ARE NOT COVERED BY GRI INDICATORS
MATERIAL TOPIC: CARBON NEUTRAL MOBILITY
103-1, 103-2, 103-3	Management approach	46 - 49, 112 - 113, 125, 169
MATERIAL TOPIC: PRODUCT DESIGN AND STYLE
103-1, 103-2, 103-3	Management approach	46 - 49, 109 - 111, 123- 124, 169