Reporting Standards

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Applied reporting standards ​​​​

The Consolidated Disclosure of Non-financial Information (hereinafter also “Non-Financial Information”, “Disclosure” or “NFI”) of the Brembo Group (hereinafter also “Brembo”, “Group”, “Company”) 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. 

That disclosure, published annually, is 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 Word Economic Forum​ and the indicators put forward by the Sustainability Accounting Standards Board (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. CSR Directive).

For disclosures published following 1 January 2022, Brembo must include in the NFI the information required by the EU Taxonomy Regulation with regard to environmentally sustainable activities carried out by the Group. In relation to this, please refer to paragraph “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 2022 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 climate change mitigation and climate change adaptation objectives, as provided for by the Annexes to the Commission Delegated Regulation (EU) 2021/2139 of 4 June 2021, in addition to some qualitative information.

To request further information or express comments, contact us at: sustainability@brembo.it.

​The European Union Taxonomy  

Over the past few years, the European Union, in line with the goals of the UN 2030 Agenda and with the aim of achieving climate neutrality by 2050, has defined a series of strategies and initiatives aimed at directing capital flows towards more sustainable economic models and promoting investments in sustainable assets and activities through the use of public and private resources.

In this context, Regulation (EU) No. 2020/852, commonly referred to as "Taxonomy", establishes a common language for criteria determining whether an economic activity can be considered environmentally sustainable, reducing the risk of greenwashing, and provides financial institutions and investors with greater comparability regarding the degree of eco-sustainability of an investment associated with that activity.  

In particular, the taxonomy classifies economic activities that can be potentially brought into line with the six environmental objectives defined by the European Union and thus can contribute to the achievement of the same:  

• 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. 

Article 8 of the Regulation (EU) No. 2020/852 sets forth the reporting obligations within the Taxonomy, which to date apply to non-financial undertakings subject to the Non-Financial Reporting Directive. Moreover, in July 2021 the Regulation (EU) No. 2021/2178 further integrated the Regulation’s content in order to clarify the calculation methodology and disclosure of the Taxonomy-related information.

As of 1 January 2022, with regard to 2021 data, undertakings reported in their disclosures of non-financial information the information necessary to meet the Regulation’s requirements. In particular, information that the Taxonomy requires non-financial undertakings to disclose refer to the following indicators:
a) the proportion of the turnover derived from products or services associated with economic activities that qualify as defined by the Taxonomy;
b) the proportion of capital expenditure and the proportion of operating expenditure related to assets or processes associated with economic activities that qualify as defined by the Taxonomy.

Following the first application of the Regulation for the financial year 2021, for which non-financial undertakings were required to report the share of taxonomy-eligible economic activities, starting from 1 January 2023, with regard to the data for 2022, non-financial undertakings are required to report, in addition to the share of taxonomy-eligible economic activities, also the share of sustainable activities (so-called “taxonomy-aligned economic activities”).

To understand if one’s taxonomy-eligible activities can also be considered to be taxonomy-aligned, two types of criteria have to be verified:
- the technical screening criteria described in the Delegated Acts and assessing whether the activities concerned make a substantial contribution to climate change adaptation and mitigation;
- the DNSH – Do No Significant Harm criteria, which ascertain whether the activities considered do not cause significant harm to any of the other environmental objectives.

In addition to these specific technical requirements related to environmental objectives, the Regulation also requires compliance with the “Social Minimum Safeguards”. In this case, the organisation must demonstrate through the procedures implemented that it ensures adherence to the OECD Guidelines for Multinational Enterprises and the United Nations Guiding Principles on Business and Human Rights, including 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.

In order to meet the requirements of the legislation and make reporting increasingly transparent, the Brembo Group continued the analysis of its taxonomy-eligible economic activities in 2022 in order to assess their effective contribution to the aforementioned objectives and understand if and which of these can also be considered to be aligned. To do this, it proceeded to ascertain the technical screening criteria, the DNSH criteria and the Social Minimum Safeguards.

At the end of these analyses, there is a high level of compliance with the technical screening criteria. In the evaluation of the DNSH criteria and the requirements relating to the Social Minimum Safeguards, it is reported that many safeguards have been formalised within policies and procedures and have been implemented through specific actions.

However, in order to guarantee the utmost observance of the Regulation (EU) No. 852/2020 on Taxonomy, the Group deemed it appropriate to perform further analyses on the assessment of its aligned activities.

Results from such assessments are illustrated in the attached table, and in a complete format in the Appendix to the 2022 Sustainability Report, which abide by the EU Regulation 2021/2178 templates. ​​​ ​