Reporting Standards

Reporting Standards Applied

The Consolidated Disclosure of Non-Financial Information of the Brembo Group contains information relating to environmental, social and employee matters, respect for human rights, anti-corruption and bribery matters, providing stakeholders with an accurate, thorough and transparent view of Brembo’s strategies, activities, performance and the Group’s 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, published annually, has been written in accordance with Italian Legislative Decree No. 254/2016 and in compliance with the Sustainability Reporting Standards published by the Global Reporting Initiative - GRI (Core Option). These Guidelines currently represent the most widespread and recognised standard on an international level regarding non-financial reporting.

In the reporting process, with a view to continuous improvement and in response to stakeholder requirements, 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 SASB standards.

Taxonomy

In the classification system or "taxonomy" of sustainable activities, as set out in Regulation (EU) 2020/852, the criteria to determine whether an economic activity can be considered to be eco-sustainable so that the degree of eco-sustainability of an investment associated with that activity can be identified as a result, are defined.

In particular, the taxonomy classifies economic activities that can be potentially brought into line with the six environmental objectives defined by the European Union:

• 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

Currently the legislation has defined technical screening criteria only for the first two objectives.

In 2021, the Brembo Group, in order to align itself with the requirements of the legislation and to make reporting increasingly transparent, carried out an initial analysis of its (so-called "eligible”) activities in order to assess their actual contribution to the objectives mentioned above.

Reporting Process

The preparation of the 2021 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 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 made available to the auditors (Board of Statutory Auditors and Independent Auditors);

• subject to limited audit by EY S.p.A. pursuant to the International Standard on Assurance Engagement (ISAE 3000 Revised); 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 of Non-Financial Information:

GRI table of contents ‘in accordance’ – core option

GRI ID	Disclosure	Page number or disclosure	UN Global Compact	SDGs*
GENERAL STANDARD DISCLOSURES (2016)
ORGANIZATION PROFILE (2016)
102-1	Name of the organisation	26
102-2	Activities, brands, products, and services	22-23, 30
102-3	Location of headquarters	26
102-4	Location of operations	26-27
102-5	Ownership and legal form	26, 214, Corporate Governance and Ownership Structure Report; Annual Report
102-6	Markets served	23, 28-29
102-7	Scale of the organization	22, Annual Report
102-8	Information on employees and other workers	112, 118-121, 204-205	Principle 6	8, 10
102-9	Supply chain	18-19, 138-139
102-10	Significant changes to the organization and its supply chain	214-215
102-11	Precautionary principle or approach	103-109
102-12	External initiatives	The Group adheres to UN Global Compact principles and is inspired by the International Labour Standards set out in the fundamental conventions of the International Labour Organisation (ILO).
102-13	Membership of associations	59-62
STRATEGY (2016)
102-14	Statement from senior decision-maker	6-7
102-15	Key impacts, risks, and opportunities	106-109, 217
ETHICS AND INTEGRITY (2016)
102-16	Values, principles, standards, and norms of behaviour	9, 45, 91-95	Principle 10	16
102-17	Mechanisms for advice and concerns about ethics	93-94, 97-98, 121	Principle 10	16
GOVERNANCE (2016)
102-18	Governance structure	42-44, 78-91, 204, Corporate Governance and Ownership Structure Report
102-19	Delegating authority	43-44
102-20	Executive-level responsibility for economic, environmental, and social topics	43-44
102-22	Composition of the highest governance body and its committees	78-79, 80, 82, 85, 87, 204, Corporate Governance and Ownership Structure Report		5, 16
102-23	Chair of the highest governance body	82, 204, Corporate Governance and Ownership Structure Report		16
102-24	Nominating and selecting the highest governance body	82-84, Corporate Governance and Ownership Structure Report		5, 16
102-26	Role of highest governance body in setting purpose, values, and strategy	78-79, 81
102-27	Collective knowledge of highest governance body	87
102-28	Evaluating the highest governance body’s performance	83, Corporate Governance and Ownership Structure Report
102-30	Effectiveness of risk management processes	81, 103-105
102-31	Review of economic, environmental, and social topics	42-43, 78-79, 81
102-32	Highest governance body’s role in sustainability reporting	42-43, 214
102-33	Communicating critical concerns	42-43, 91-93, Corporate Governance and Ownership Structure Report
102-35	Remuneration policies	85-86, Remuneration report
STAKEHOLDER ENGAGEMENT (2016)
102-40	List of stakeholders groups	54
102-41	Collective bargaining agreements	113	Principle 3	8
102-42	Identifying and selecting stakeholders	54
102-43	Approach to stakeholder engagement	55-58
102-44	Key topics and concerns raised	55-58
REPORTING PRACTICE (2016)
102-45	Entities included in the consolidated financial statements	214, Annual report
102-46	Defining report content and topic Boundaries	63-64, 216-217
102-47	List of material topics	63-67
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	No significant changes have been reported compared to previuos reporting period
102-50	Reporting period	214
102-51	Date of most recent report	Consolidated Disclosure of Non Financial Information (in accordance with Legislative Decree No. 254/2016) was published on 2021 march 22nd
102-52	Reporting cycle	214
102-53	Contact point for questions regarding the report	215
102-54	Claims of reporting in accordance with the GRI Standards	214
102-55	GRI content index	218-226
102-56	External assurance	214, 228-230
CATEGORY: ECONOMIC PERFORMANCE
ASPECT: ECONOMIC PERFORMANCE (2016)
103-1, 103-2, 103-3	Management approach	64-70, 188-190, 217
201-1	Direct economic value generated and distributed	189		8, 9
201-4	Financial assistance received from government	189-190
ASPECT: MARKET PRESENCE (2016)
103-1, 103-2, 103-3	Management approach	64-70, 108, 118-121, 217
202-2	Proportion of senior management hired from the local community	120	Principle 6	8
ASPECT: PROCUREMENT PRACTICE (2016)
103-1, 103-2, 103-3	Management approach	64-70, 138-139, 217
204-1	Proportion of spending on local suppliers	139		8
ASPECT: ANTI-CORRUPTION (2016)
103-1, 103-2, 103-3	Management approach	64-70, 90-92, 94-95, 96-99, 108, 217
205-2	Communication and training about anti-corruption policies and procedures	99, Corporate Governance and Ownership Structure Report	Principle 10	16
205-3	Confirmed incidents of corruption and actions taken	99	Principle 10	16
ASPECT: ANTI-COMPETITIVE BEHAVIOUR (2016)
103-1, 103-2, 103-3	Management approach	64-70, 93-94, 217
206-1	Legal actions for anti-competitive behaviour, anti-trust, and monopoly practices	93-94		16
ASPECT: TAX (2019)
103-1, 103-2, 103-3	Management approach	64-70, 95-96, 100-101, 217
207-1	Approach to tax	100-101		1, 10, 17
207-2	Tax governance, control, and risk management	100-101		1, 10, 17
207-3	Stakeholder engagement and management of concerns related to tax	100-101		1, 10, 17
207-4	Country-by-country reporting	212-213, Section “Performance of Brembo Companies” included in the Directors’ Report on Operations		1, 10, 17
CATEGORY: ENVIRONMENTAL PERFORMANCE
ASPECT: ENERGY (2016)
103-1, 103-2, 103-3	Management approach	64-70, 106-107, 170-178, 217
302-1	Energy consumption within the organisation	177	Principle 7, 8	7, 8, 12, 13
302-4	Reduction of energy consumption	176-177	Principle 8, 9	7, 8, 12, 13
ASPECT: WATER AND EFFLUENTS (2018)
103-1, 103-2, 103-3	Management approach	64-70, 106-107, 173, 181-184, 217
303-1	Interactions with water as a shared resource	181-182	Principle 7, 8	6, 12
303-2	Management of water discharge related impacts	182	Principle 8	6
303-3	Water withdrawal	183	Principle 8	6
303-4	Water discharge	183	Principle 8	6
303-5	Water consumption	184, Water storage does not have a significant impact in relation with the use of water resources	Principle 8	6
ASPECT: EMISSIONS (2016)
103-1, 103-2, 103-3	General requirements about the management approach and its components	64-70, 106-107, 170-173, 178-181, 217
305-1	Direct (Scope 1) GHG emissions	180	Principle 7, 8	3, 12, 13, 14, 15
305-2	Energy indirect (Scope 2) GHG emissions	180	Principle 7, 8	3, 12, 13, 14, 15
305-3	Other indirect (Scope 3) GHG emissions	180	Principle 7, 8	3, 12, 13, 14, 15
305-5	Reduction of GHG emissions	178-179	Principle 8, 9	13, 14, 15
305-7	Nitrogen oxides (NOX), sulphur oxides (SOX), and other significant air emissions	181	Principle 7, 8	3, 12, 14, 15
ASPECT: WASTE (2020)
103-1, 103-2, 103-3	Management approach	64-70, 106-107,173-174, 184-185, 217
306-1	Waste generation and significant waste-related impacts	184-185		3, 6, 11, 12
306-2	Management of significant wasterelated impacts	184-185	Principle 8	3, 6, 8, 11, 12
306-3	Waste generated	184-185	Principle 8	3, 6, 11, 12, 15
306-4	Waste diverted from disposal	184-185		3, 11, 12
306-5	Waste directed to disposal	184-185		3, 6, 11, 12, 15
ASPECT: ENVIRONMENTAL COMPLIANCE (2016)
103-1, 103-2, 103-3	Management approach	64-70, 98, 106-107, 170-173, 217
307-1	Non-compliance with environmental laws and regulations	In 2021, Brembo received two pecuniary fines due to non-compliance with environmental laws and regulations for a total amount of €21,146 thousand.	Principle 7, 8	16
ASPECT: SUPPLIER ENVIRONMENTAL ASSESSMENT (2016)
103-1, 103-2, 103-3	Management approach	64-70, 107, 138-143, 217
308-1	New suppliers that were screened using environmental criteria	138, 141-142	Principle 7, 8
CATEGORY: SOCIAL PERFORMANCE
ASPECT: EMPLOYMENT (2016)
103-1, 103-2, 103-3	General requirements about the management approach and its components	64-70, 108-109, 112-118, 217
401-1	New employee hires and employee turnover	113-114, 206	Principle 6	5, 8, 10
ASPECT: OCCUPATIONAL HEALTH AND SAFETY (2018)
103-1, 103-2, 103-3	Management approach	16-17, 64-70, 94-95, 108, 126-130, 217
403-1	Occupational health and safety management system	126-128		3, 8, 16
403-2	Hazard identification, risk assessment, and incident investigation	126-128		8
403-3	Occupational health services	132-133		8
403-4	Worker participation, consultation, and communication on occupational health and safety	129-130		8, 16
403-5	Worker training on occupational health and safety	132-134		8
403-6	Promotion of worker health	130-134		3
403-7	Prevention and mitigation of occupational health and safety impacts directly linked by business relationships	126, 140		8
403-8	Workers covered by an occupational health and safety management system	126-127		8
403-9	Work-related injuries	126-129, 207-211		3, 8, 16
403-10	Work-related ill health	129, 208, 211		3, 8, 16
ASPECT: TRAINING AND EDUCATION (2016)
103-1, 103-2, 103-3	Management approach	64-70, 108, 121-124, 129-130, 217
404-1	Average hours of training per year per employee	123	Principle 6	4, 5, 8, 10
404-3	Percentage of employees receiving regular performance and career development reviews	125	Principle 6	5, 8, 10
ASPECT: DIVERSITY AND EQUAL OPPORTUNITY (2016)
103-1, 103-2, 103-3	Management approach	64-70, 89, 94-95, 118-121, 217	Principle 6
405-1	Diversity of governance bodies and employees	78, 84, 119-120, 204-205	Principle 6	5, 8
ASPECT: NON-DISCRIMINATION (2016)
103-1, 103-2, 103-3	Management approach	64-70, 94-95, 118-121, 217	Principle 6
406-1	Incidents of discrimination and corrective actions taken	121	Principle 1, 2, 6	5, 8
ASPECT: HUMAN RIGHTS ASSESSMENT (2016)
103-1, 103-2, 103-3	Management approach	64-70, 97-99, 107-108, 122, 217
412-2	Employee training on human rights policies or procedures	122
ASPECT: SUPPLIER SOCIAL ASSESSMENT (2016)
103-1, 103-2, 103-3	Management approach	64-70, 107, 138-143, 217
414-1	New suppliers that were screened using social criteria	141-142	Principle 2, 4, 5	5, 8, 16
ASPECT: PUBLIC POLICY (2016)
103-1, 103-2, 103-3	Management approach	64-70, 217,Code of Ethics
415-1	Political contributions	In 2021, Brembo did not grant political or financial contributions, nor contributions in kind.	Principle 10	16
ASPECT: CUSTOMER HEALTH AND SAFETY (2016)
103-1, 103-2, 103-3	Management approach	64-70, 108-109, 162-166, 217
416-1	Assessment of the health and safety impacts of products and services categories	163
ASPECT: CUSTOMER PRIVACY (2016)
103-1, 103-2, 103-3	Management approach	64-70, 93-94, 107-108, 217
418-1	Substantiated complaints regarding breaches of customer privacy and losses of customer data	94		16
MATERIAL TOPICS THAT ARE NOT COVERED BY GRI INDICATORS
MATERIAL TOPIC: CARBON NEUTRAL MOBILITY
103-1, 103-2, 103-3	Management approach	64-70, 109, 150-153, 217
MATERIAL TOPIC: PRODUCT DESIGN AND STYLE
103-1, 103-2, 103-3	Management approach	64-70, 155-157, 166-167, 217

* Linking the SDGs and the GRI Standards – Edition march 2021

SASB and WEF

SASB - Auto parts
Topic	SASB ID	Disclosure	Page number or disclosure
Energy Management	TR-AP-130a1	(1) Total energy consumed, (2) percentage grid electricity, (3) percentage renewable	177
Waste Management	TR-AP-150a.1	(1) Total amount of waste from manufacturing, (2) percentage hazardous, (3) percentage recycled	185
WEF Measuring Stakeholder Capitalism - Core metrics
Topic		Disclosure	Page number or disclosure
Quality of governing body		Board composition	81-84
Ethical behaviour		Anti-corruption	92, 96-99, 108-109
Ethical behaviour		Protected ethics advice and reporting mechanism	98-99, 121
Risk and opportunity oversight		Integrating risk and opportunity into business process	94-95, 98-99, 120
Climate change		Greenhouse gas (GHG) emissions	180
Climate change		TFCD implementation	107, 170-171
Freshwater availability		Water consumption and withdrawal in water-stressed areas	183-184
Dignity and equality		Diversity and inclusion (%)	78, 89, 119-120, 204
Community and social vitality		Total tax paid	100-101, 212-213, Section “Performance of Brembo Companies” included in the Directors’ Report on Operations
Employment and wealth generation		Absolute number and rate of employment	113-114, 206
		Economic contribution	189
		Financial investment contribution	189