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. ​​ ​

CSR-tasto-sito-1100px-italiano.jpg

 

The Reporting Process​



The preparation of the Consolidated Disclosure of Non-Financial Information is a real annual reporting process, subject to inspection, analysis and approval by several parties. Following the approval by the Board of Directors of the material topics and the related impacts, 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 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 Non-Financial Information is made available to the auditors (Board of Statutory Auditors and Independent Auditors);

• submitted to limited audit by the auditing firm Deloitte & Touche S.p.A., meaning that 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 of Non-Financial Information:


Sustainability Context ​ 

 

The report has to present information concerning the impacts of the Organisation within the broader context of sustainability, on the basis of how it contributes, or intends to contribute in future, to the improvement or worsening of economic, environmental and social conditions, developments and trends on a local, regional or global level. ​


Completeness ​


The report must cover the material topics and their perimeters to a sufficient extent to reflect impacts generated on economy, environment and people, including with regard to human rights, to enable stakeholders to assess them during the reporting period.​



Balance between positive and negative aspects  

 

The Organisation must report information in an impartial manner, providing a fair and balanced representation of the negative and positive impacts and so as to allow their weighted assessment. The report should avoid selections, omissions or presentation formats that could unduly or improperly influence the decision or judgment of the reader of the report.



Comparability ​


The Organisation must select, compile and report the information in a consistent manner. The information covered by the report must be presented in such a way as to enable stakeholders to analyse changes to the impacts of the Organisation over time and that could support an analysis relative to other Organisations.


Accuracy


The information provided in the report must be accurate and sufficiently detailed for the stakeholders to be able to assess the impacts of the Organisation.



Timeliness 


The Organisation must publish reports on a periodical basis so that the data is available in time for the stakeholders to make informed decisions.



Reliability​ 

 

The Organisation must collect, record, compile, analyse and present the information and processes employed in writing the report so that they can be examined and the quality and materiality can be defined.​



Clarity


The Organisation must make the data available in such a way that it is understandable and accessible to the stakeholders using it, through tools allowing to find information without unreasonable effort and avoiding the use of technical terms and abbreviations without an appropriate explanation. 


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GRI table of contents​

Table of contents of the Disclosure of Non-financial Information “in accordance” with the GRI Standards for the Fiscal Year 2022​

GRI ID​ Disclosure ​
2022 NFI page number or other disclosure Omissions*
UN Global
Compact
​SDGs
GRI2: GENERAL STANDARD DISCLOSURES (2021) ​
​THE ORGANISATION AND ITS REPORTING PRACTICES
2-1​ Organisation details​ 24-25, 74-76 ; Corporate Governance and Ownership Structure Report; Annual Report
2-2
Entities included in the organisation’s sustainability reporting ​ 237-238; Annual Report
2-3​​ Reporting period, frequency and contact point
237-238 , 252; The 2022 Consolidated Disclosure of Non-Financial Information (pursuant to Legislative Decree No. 254/2016) has been published on 20th March 2023 (English version on April 20th 2023)
2-4​​ Restatements of information
238-239
2-5​ External assurance
ACTIVITIES AND WORKERS
2-6
Activities, value chain and other business relationships
12-13, 18-21, 26-28, 134-139, 142-153; Annual Report
2-7​ Employees 12, 18, 108-109, 114-117, 205-208; Annual Report ​​

2-8​ Workers who are not employees​ 12, 108, 207-208
Principle 6​ ​8, 10
GOVERNANCE
2-9​ Governance structure and composition​ 12, 74-81, 84-87, 204; Corporate Governance and Ownership Structure Report ​5, 16
2-10​ Nomination and selection of the highest governance body 78-79; Corporate Governance and Ownership Structure Report ​5, 16
2-11​​ Chair of the highest governance body ​
77; Corporate Governance and Ownership Structure Report
16​
2-12
Role of the highest governance body in overseeing the management of impacts 78, 88-92, 97-99; Corporate Governance and Ownership Structure Report
​2-13
Delegation of responsibility for managing impacts
93-95; Corporate Governance and Ownership Structure Report
2-14
Role of the highest governance body in sustainability reporting 39-41, 57, 78, 80-81, 204 ; Corporate Governance and Ownership Structure Report
​2-15
Conflicts of interest
​2-16​​ ​Communication of critical concerns 93-94​​​​​​​
2-17​ Collective knowledge of the highest governance body​
85
​​
​2-18​​ Evaluation of the performance of the highest governance body 79, 84-85; Report on the Remuneration Policy for 2023 and Remuneration Paid in 2022 of the Brembo Group ​​
​2-19
Remuneration policies
81-83; Report on the Remuneration Policy for 2023 and Remuneration Paid in 2022 of the Brembo Group
2-20​ Process to determine remuneration​ 81-83; Report on the Remuneration Policy for 2023 and Remuneration Paid in 2022 of the Brembo Group
2-21​ Annual total compensation ratio ​ Report on the Remuneration Policy for 2023 and Remuneration Paid in 2022 of the Brembo Group
The organisation is committed to provide this information as required by the GRI indicator by the date of publication of the 2024 NFI
2-22
Statement on sustainable development strategy
6-7​
2-23
Policy commitments 88-95
Principle 10​ ​16
2-24
Embedding policy commitments
88-95

2-25
Processes to remediate negative impacts 90-91, 94, 116-117, 129, 158-161
2-26
Mechanisms for seeking advice and raising concerns
94, 116-117
Principle 10​ ​16
​2-27
Compliance with laws and regulations 224 ​​ Principle 7, 8​ ​16
2-28
Membership associations 9,53-56
​2-29​ ​Approach to stakeholder engagement ​ 50-52, 112-113, 154-157​
2-30
Collective bargaining agreements 109, 117
GRI 3: MATERIAL TOPICS 2021
​​​​​3-1​ ​ Process to determine material topics​​ 57-62
​3-2​ List of material topics ​ 59-62, 67, 230-34
CATEGORY: ECONOMIC PERFORMANCE ​​ 
TOPICS: SUPPORT TO LOCAL COMMUNITIES
3-3
Management of material topics ​ 59-62, 188-191​
201-1
Direct economic value generated and distributed 189
8, 9​
TOPICS: ETHICS AND INTEGRITY
3-3
Management of material topics ​ 59-62, 88-89, 92-95,104-105 5, 16​
​201-4
Financial assistance received from government ​​ 189
205-2
Communication and training about anti-corruption policies and procedures
94-95; Corporate Governance and Ownership Structure Report ​Principle 10
16​
205-3​ Confirmed incidents of corruption and actions taken 94
Principle 10​ 16​
206-1​ Legal actions for anti-competitive behaviour, anti-trust, and monopoly practices 90
​16
415-1
Political contributions In 2022, Brembo did not grant political or financial contributions, nor contributions in kind. ​ ​Principle 10
16​
MATERIAL TOPIC: HUMAN RIGHTS
3-3
Management of material topics ​ 59-62, 88-91, 103, 116-117, 135-139
202-2​ Proportion of senior management hired from the local community 116
Principio 6 8
MATERIAL TOPIC: RESPONSIBLE PURCHASES
3-3
Management of material topics ​ 13, 59-62, 103, 134-139 8, 12​
204-1​ Proportion of spending on local suppliers 135


308-1
New suppliers that were screened using environmental criteria 136 Principle 7, 8
414-1
New suppliers that were screened using social criteria ​​ 21​4​ ​Principle 2, 4, 5
8, 16
CATEGORIA PERFORMANCE AMBIENTALE ​ ​​ 
MATERIAL TOPIC: ENERGY AND WATER EFFICIENCY
MATERIAL TOPIC: RESEARCH AND INNOVATION
3-3
Management of material topics​​ 13, 59-62, 102, 105, 142-153, 163-164, 168-174, 180-182
302-1 Energy consumption within the organisation
174
Principle 7, 8​ 7, 8, 12, 13​
302-4
Reduction of energy consumption 173
Principle 8, 9​ 8, 12, 13​
303-1
Interactions with water as a shared resource​ 181-182 ​Principle 7, 8
6, 12
​303-2
Management of water discharge related impacts 181-182
​Principle 8
6​
303-3
Water withdrawal ​ 182
Principle 8
6
303-4
Water discharge
183 Principle 8​ 6​
303-5
Water consumption
183 ; Water storage does not have a significant impact in relation with the use of water resources Principle 8
6
MATERIAL TOPIC: EMISSIONS
MATERIAL TOPIC: RESEARCH AND INNOVATION
​3-3
Management of material topics
13, 59-62, 102, 105, 142-153, 163-165, 176-177, 180
305-1 Direct (Scope 1) GHG emissions​ 177-178
​Principle 7, 8
12, 13, 14, 15
305-2 Energy indirect (Scope 2) GHG emissions
177-178
Principle 7, 8 ​​ ​12, 13, 14, 15
305-3
Other indirect (Scope 3) GHG emissions
177-178
Principle 7, 8 ​ ​12, 13, 14, 15
305-5
Reduction of GHG emissions 168,173,176
Principle 8, 9​​ 14, 15
305-7
Nitrogen oxides (NOx), sulfur oxides (SOx), and other significant air emissions
180​​​ Principle 7, 8 ​​ 12, 14, 15
MATERIAL TOPIC: WASTE MANAGEMENT
3-3 ​ ​Management of material topics​ 59-62,102,184-185
306-1​ ​Waste generation and significant waste-related impacts 184-185
6, 11, 12

306-2​ Management of significant waste-related impacts
184-185
​Principle 8
​6, 8, 11, 12​
306-3 ​​ Waste generated​​ 185
​​Principle 8
3, 6, 8, 11, 12​
306-4​ Waste diverted from disposal
185

​3, 11, 12
306-5
Waste directed to disposal
185
3, 6, 11, 12, 15
CATEGORY: SOCIAL PERFORMANCE ​ ​​ 
MATERIAL TOPIC: TRAINING AND DEVELOPMENT OF PERSONNEL
3-3
Management of material topics
12, 59-62, 104, 108-112, 118-121, 208-209

401-1
New employee hires and employee turnover
109-110, 208-209
Principle 6​
8, 10
404-1
Average hours of training per year per employee
119
​Principle 6​
4, 5, 8, 10
404-3
Percentage of employees receiving regular performance and career development reviews
120-121
Principle 6​
8, 10
MATERIAL TOPIC: HEALTH AND SAFETY
3-3
Management of material topics
12, 59-62, 91, 104, 122-131, 210-215, 225-229

​​
403-1 ​ Occupational health and safety management system
12, 122-131, 225-228
8​
403-2
Hazard identification, risk assessment, and incident investigation ​ 122-125
​​ 8
​​403-3​ Occupational health services
123-124, 129-130​
8
​403-4​ Worker participation, consultation, and communication on occupational health and safety 129​ ​8, 16
​​403-5
Worker training on occupational health and safety​​ 126-128

8
​403-6​ Promotion of worker health 117, 128-130
3
​​403-7
Prevention and mitigation of occupational health and safety impacts directly linked by business relationships​​ 131
​​
8
403-8
Workers covered by an occupational health and safety management system
123
8​
403-9
Work-related injuries
125-126, 210-211, 213-214​ 3, 8, 16
403-10
Work-related ill health ​​
126, 212, 215
3, 8, 16
MATERIAL TOPIC: DIVERSITY, EQUITY AND INCLUSION​
3-3
Management of material topics ​ 12, 59-62, 114-117, 204
​Principio 6

405-1​ Diversity of governance bodies and employees 12, 80-81, 114-116, 204
Principio 6
​5, 8
406-1​​​ Incidents of discrimination and corrective actions taken​ 94,117​​ Principio 1, 2, 6
5, 8
TOPIC: PRODUCT SAFETY ​
3-3​​​ Management of material topics 13, 59-62, 158-162​​
​​416-1
Assessment of the health and safety impacts of product and service categories
158-162

16
MATERIAL TOPIC: LOSS OF SENSITIVE DATA
MATERIAL TOPIC: DIGITAL TRANSFORMATION ROADMAP
3-3​ Management of material topics 10-11, 20-21, 59-62
418-1
​Substantiated complaints regarding breaches of customer privacy and losses of customer data
90​​ 16
​MATERIAL TOPICS THAT ARE NOT COVERED BY GRI INDICATORS ​ ​
MATERIAL TOPIC: ENVIRONMENTALLY SUSTAINABLE PRODUCT ​ ​ ​
3-3​ Management of material topics​ 59-62, 142-143
*For omissions, please provide the omitted information, the reason and explanation.
​​​​​​​

* Linking the SDGs and the GRI Standards (May 2022 update) – used for making SDG associations.​


 

​SASB and WEF​

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​   SASB - Auto parts
Topic​​ SASB ID​ Disclosure​ 2022 NFI page number or other disclosure​​
Energy Management​​​TR-AP-130a1​ (1) Total energy consumed,
(2) percentage grid electricity,
(3) percentage renewable​

174​
Waste Management​​TR-AP-150a.1​(1) Total amount of waste from manufacturing,
(2) percentage hazardous,
(3) percentage recycled

184
​   WEF Measuring Stakeholder Capitalism - Core metrics​
Topic​​
Disclosure​​ 2022 NFI page number or other disclosure

Quality of governing body​


Governance body composition​

78-81


Ethical behaviour​

Anti-corruption​​88-89, 92-95, 104-105​​

Protected ethics advice and reporting mechanism​94, 117​​
Risk and opportunity oversight​
Integrating risk and opportunity into business process ​102-105​​

Climate change​​

 ​ Greenhouse gas (GHG) emissions​177-178​​​
​ ​ TFCD implementation​​ 235-236
​​Freshwater availability​​
Water consumption and withdrawal in water-stressed areas​181-182​​​
​Dignity and equality​
Diversity and inclusion​
74, 78-79, 115-116, 204​​​
Community and social vitality​
Total tax paid​
95-97, 222-223; Paragraph Section “Performance of Brembo Companies” included in the Directors’ Report on Operations


​​​Employment and wealth generation​



Absolute number and rate of employment​
108-109, 206-208​​​

Economic contribution​
189​

Financial investment contribution​
189​​




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