Reporting Standars

Reporing Standards Applied

This Consolidated Disclosure of Non-Financial Information for 2018, 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 policiesapplied 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 2018 Consolidated Disclosure of Non- financial 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 Consolidated Disclosure of Non-Financial Information;

• approved by the Board of Directors, which meets to approve the draft budget, after it has been assessed by the CSR Steering Committee which, through the Chief CSR Officer, presents it to the Risk Control and 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 Consolidated Financial Statements, the draft Consolidated Disclosure of Non-Financial Information is made available to the auditors (Board of Statutory Auditors and Independent Auditors);

• submitted for auditing by Ernst & Young, 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 Consolidated 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	Indicator description	Page number or disclosure
GENERAL STANDARD DISCLOSURES
ORGANIZATION PROFILE
102-1	Name of the organisation	7
102-2	Main activities, brands, products and/or services	13, 20
102-3	Location of headquarters	16
102-4	Location of operations	16 - 17
102-5	Ownership and legal form	22, Corporate Governance and Ownership Structure Report; Annual Report
102-6	Markets served (including geographic locations, sectors, types of customers and beneficiaries)	13, 18 - 19
102-7	Scale of the organization	12, Annual Report
102-8	Number of employees by employment contract, region and gender	72, 76 – 78, 149, 150
102-9	Supply chain description (activities, products, number of suppliers, suppliers by geographical area, monetary value of supplies)	94 - 95
102-10	Significant changes to the Group's size, structure, ownership, or supply chain in the reporting period	No significant changes have been reported
102-11	Application process of the precautionary principle or approach	64 - 66
102-12	Endorsement of externally-developed economic, social and environmental codes and principles	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 national or international advocacy association and organisations	38 - 41
STRATEGY
102-14	Statement from the Chairman and the CEO	4 - 5
102-15	Key impacts, risks, and opportunities	66 – 68, 102,110-111
ETHICS AND INTEGRITY
102-16	Values, principles, standards, codes of conduct and codes of ethics	28,58 - 61
102-17	Description of mechanisms for reporting about non-ethical and unlawful behaviour	63, 78, 122
GOVERNANCE
102-18	Governance structure, including committees of the highest governance body. Other committees responsible for decision-making on environmental and social topics.	26 - 27, 52 – 57, 148, Corporate Governance and Ownership Structure Report
102-19	The process for delegating authority for economic, environmental, and social topics	26 - 27
102-20	Individuals or bodies with responsibility for economic, environmental, and social topics, and the processes for reporting directly to the highest governance body	26 –27
102-22	Composition of the highest governance body and its committees	55, 56, 148, Corporate Governance and Ownership Structure Report
102-23	Indication on whether the Chairman of the highest governance body is also an executive officer	55, 148, Corporate Governance and Ownership Structure Report
102-24	Nomination and selection processes for the highest governance body	53 - 54, Corporate Governance and Ownership Structure Report
102-26	Highest governance body's role in the development of economic, environmental and social strategies	53
102-27	Development of collective knowledge of economic, environmental, and social topics of the Group	55
102-30	Highest governance body's role in reviewing the effectiveness of the risk management system for economic, environmental, and social topics	64 - 65
102-31	Frequency of the highest governance body's review of the effectiveness of the risk management system for economic, environmental, and social topics.	53
102-32	Highest governance body's role in sustainability reporting	7, 26 - 27, 156
102-35	Remuneration policies	53
STAKEHOLDER ENGAGEMENT
102-40	List of stakeholders engaged	34
102-41	Percentage of employees covered by collective bargaining agreements	72
102-42	Process for identifying and selecting stakeholders with whom to engage	34
102-43	Approach to stakeholder engagement	35 – 37
102-44	Key topics and concerns that have been raised through stakeholder engagement and ensuing actions	35 – 37, 108 - 109
REPORTING PRACTICE
102-45	List of entities included in the consolidated financial statements and entities not included in the sustainability report	156
102-46	Process for defining report content	42 - 43
102-47	Material topics identified	43 - 47
102-48	Explanation of the effects of any restatements of information given in previous reports, and the reasons for such restatements	Any changes to the information provided in previous documents have been duly identified in the text through related explanatory notes.
102-49	Significant changes compared to previous report	No significant changes have been reported during the year
102-50	Reporting period	7, 156
102-51	Date of most recent report	7, 156 2017 Consolidated Disclosure of Non- Financial Information (in accordance with Legislative Decree No. 254/2016) was published on 20 March 2018
102-52	Reporting cycle	156
102-53	Contact point and details for information regarding the report	7
102-54	Claims of reporting in accordance with the GRI Standards	7, 156
102-55	GRI content index	159 - 163
102-56	Report external assurance	164 - 167
ECONOMIC PERFORMANCE
ECONOMIC PERFORMANCE
103-1, 103-2, 103-3	Management approach	44-47, 136 - 139
201-1	Direct economic value generated and distributed	137
MARKET PRESENCE
103-1, 103-2, 103-3	Management approach	44 - 47, 76 - 77
202-2	Proportion of senior management hired from the local community	77
PROCUREMENT PRACTICES
103-1, 103-2, 103-3	Management approach	44 - 47, 94, 95
204-1	Proportion of spending on local suppliers	9, 92, 95
ANTI-CORRUPTION
103-1, 103-2, 103-3	Management approach	44 - 47, 58 - 59, 63
205-2	Communication and training about anti-corruption policies and procedures	63, Corporate Governance and Ownership Structure Report
205-3	Confirmed incidents of corruption and actions taken	63
ANTI-COMPETITIVE BEHAVIOUR
103-1, 103-2, 103-3	Management approach	44 - 47, 59
206-1	Total number of legal actions for anti-competitive behaviour, anti-trust, and monopoly practices	59
ENVIRONMENTAL PERFORMANCE
ENERGY
103-1, 103-2, 103-3	Management approach	44 - 47, 120 - 126
302-1	Energy consumption within the organisation	125
302-4	Reduction of energy consumption	124
WATER
103-1, 103-2, 103-3	Management approach	44 - 47, 120 – 122, 130 - 131
303-1	Water withdrawal by supply source	130 - 131
EMISSIONS
103-1, 103-2, 103-3	General requirements about the management approach and its components	44 - 47, 120 – 122, 126 - 129
305-1	Direct (Scope 1) GHG emissions	126, 127
305-2	Energy indirect (Scope 2) GHG emissions	126, 127
305-3	Other indirect (Scope 3) GHG emissions	126, 127
305-5	Reduction of GHG emissions	124, 126, 128
305-7	Nitrogen oxides (NOX), sulphur oxides (SOX), and other significant air emissions	129
EFFLUENTS AND WASTE
103-1, 103-2, 103-3	Management approach	44 - 47, 120 – 122, 130 – 132
306-2	Total weight of waste generated by type and disposal method	132
306-3	Significant spills	131
ENVIRONMENTAL COMPLIANCE
103-1, 103-2, 103-3	Management approach	44 - 47, 61, 120 - 122
307-1	Non-compliance with environmental laws and regulations	In 2018, Brembo did not receive any pecuniary fine due to non-compliance with environmental laws and regulations
SUPPLIER ENVIRONMENTAL ASSESSMENT
103-1, 103-2, 103-3	Management approach	44 - 47, 95 - 98
308-1	Percentage of new suppliers that were screened using environmental criteria	9, 92, 97
SOCIAL PERFORMANCE
EMPLOYEMENT
103-1, 103-2, 103-3	General requirements about the management approach and its components	44 - 47, 72 - 75
401-1	Total number and rate of new employee and of employee turnover	72 – 74, 151
OCCUPATIONAL HEALTH AND SAFETY
103-1, 103-2, 103-3	Management approach	44 - 47, 61, 84 - 90
403-1	Percentage of workers represented in formal joint management worker health and safety committees	84
403-2	Types of injury and rates of injury, occupational diseases, lost days, and absenteeism, and number of work-related fatalities by region and gender	85, 152 - 155
TRAINING AND EDUCATION
103-1, 103-2, 103-3	Management approach	44 - 47, 80 – 83, 86 - 87
404-1	Average hours of training per employee by gender and employee category	81
404-3	Percentage of employees receiving regular performance and career development reviews, by gender and employee category	83
NON-DISCRIMINATION
103-1, 103-2, 103-3	Management approach	44 - 47, 60, 77 - 78
406-1	Incidents of discrimination and corrective actions taken	78
HUMAN RIGHTS ASSESSMENT
103-1, 103-2, 103-3	Management approach	44 - 47, 62, 63, 80
412-2	Employee training on human rights	80
SUPPLIER SOCIAL ASSESSMENT
103-1, 103-2, 103-3	Management approach	44 - 47, 95 - 98
414-1	Percentage of new suppliers that were screened using social criteria	9, 92, 97
CUSTOMER HEALTH AND SAFETY
103-1, 103-2, 103-3	Management approach	44 - 47, 113 - 116
416-1	Assessment of the health and safety impacts of products and services	113
CUSTOMER PRIVACY
103-1, 103-2, 103-3	Management approach	44 - 47, 60
418-1	Number of substantiated complaints received concerning breaches of customer privacy and loss of customer data	60
PRODUCT DESIGN AND STYLE
103-1, 103-2, 103-3	Management approach	44 - 47, 102 - 107