Interpump Group — Regulatory Filings 2022

Oct 5, 2022

Informazione Regolamentata n. 0159-50-2022		Data/Ora Ricezione 05 Ottobre 2022 15:05:36	Euronext Star Milan
Societa'	:	INTERPUMP GROUP
Identificativo Informazione Regolamentata	:	167926
Nome utilizzatore	:	INTERPUMPN03 - Cugnasca
Tipologia	:	REGEM
Data/Ora Ricezione	:	05 Ottobre 2022 15:05:36
Data/Ora Inizio Diffusione presunta	:	05 Ottobre 2022 15:05:38
Oggetto	:	IP - 2023-2025 ESG Journey
Testo del comunicato

Group board approves 2023-2025 ESG Jounery

INTERPUMP APPROVES "ESG JOURNEY 2023-2025"

Chairman Fulvio Montipò: "Concrete action has always been one of the cornerstones that inspires Group strategy definition process and its execution. This founding value is also fully reflected in the 2023-2025 ESG Journey which includes both the activities already in progress and new initiatives that will allow the Group to gain further efficiencies. Clear activities with precise timelines and resources related to the management goals that make the ESG Journey a coherent expression of Group policy."

20 actions planned in the "ESG Journey"

12 to be implemented between 2023 and 2024, 7 by 2025 and 1 by 2027

Around 65% of Group turnover¹ covered by "ESG Journey" perimeter

Around 50% of Group's production sites and around 70% of its employees

Resources needed to action implementation during "ESG Journey" horizon quantified

CAPEX: around € 10m OpEX: around € 3m of incremental costs

Correlation between ESG Journey and top management remuneration policy

Correlation already in place with 2022-2024 Stock Option Plan Alignment with Part I of the Remuneration Policy

Sant'Ilario d'Enza (RE), 5 October 2022 – The Board of Directors of Interpump Group S.p.A., who met today under the chairmanship of Fulvio Montipò, approved Interpump "ESG 2023-2025 Journey".

20 actions were foreseen – 7 under the Environmental scope, 7 under the Social scope and 6 under the Governance scope – and the execution time horizon is the three-year period 2023-2025, with one action to be implemented within by 2027.

¹ 2021 turnover of € 1.551m (please refer to Non-financial statements as of 31 December 2021 for details)

Going into details, actions envisaged for 2023-2024 aim to integrate in Group strategy the ESG fundamental principles and therefore to create the value and organisational framework, while the following ones seek to support the Group in achieving the 2030 and 2050 decarbonisation targets. The entire process will be executed also by focusing on the global sharing of the best practices developed by the various Group entities for specific topics.

Around 10 million Euro of CAPEX – around 40% of those already included in 2022 budget – and around 3 million Euro of incremental OpEx are envisaged for the extension of the ISO 45001 management system certification and non-compulsory training.

The correlation between the achievement of the ESG Journey goals and the top management Remuneration Policy will be strengthened: after the introduction of ESG parameters in the 2022- 2024 Stock Option Plan² approved last April, the alignment of the variable part of the annual compensation in Part I of the Remuneration Policy will follow in the 2023 annual shareholding meeting.

The different actions related to the different scopes are indicated below.

The Environmental actions represent the starting point of the Group's Journey to achieving the 2030 and 2050 decarbonisation targets

"ENVIRONMENTAL"
Action		KPI	Timing	Target	Reference SDG
E.1	"Carbon neutrality" strategy definition	_	2023	Strategy definition

² Please refer to the Information Document about the Incentive Plan reserved for certain employees, directors and/or collaborators of the Interpump Group for the assignment of up to 2,250,000 options, known as the "2022-2024 Interpump Incentive Plan" approved by the shareholders' meeting on 29 April 2022

"ENVIRONMENTAL"
Action		KPI	Timing	Target	Reference SDG
E.2	Group "Carbon intensity" reduction	tCO2eq/€3	2025	-30% From 0.0404 in 2021 to 0.028 in 2025
E.3	Increase the percentage of renewable electricity used in relation to Group total energy needs	% of Group total energy consumption (GJ)	2025	From 3% to 25% of energy consumption
E.4-5	Pilot project in the field of circular economy Applicability analysis	_	2023	Pilot project conclusion
	of circular economy project extension to further legal entities		2025	Extension definition
E.6	Implementation of a water withdrawal and discharge continuous monitoring system in Group's plants	_	2025	Monitoring system implementation
E.7	Definition of Group guidelines for eco design of products	_	2024	Group Guideline definition

³ tCO2eq/Total consolidate revenues

⁴ 2021 baseline: tCO2eq equal to 62,181 and consolidated turnover of € 1,551m (please refer to Non-financial statements as of 31 December 2021 for details)

The Social actions aim on one hand side to further and continuously improve occupational health & safety conditions and people development and on the other to introduce ESG parameters in the suppliers' evaluation process.

"SOCIAL"
	Action	KPI	Timing	Target	Reference SDG
S.1	Maintenance of 2022-24 average employee accident incidence index below last 3 years average	Injury rate5	2024	Average 2019-21: 2,26
S.2	ISO 45001 extension to the Group's production companies	% Group turnover	2027	From 22% to 45%
S.3	Increase of average per capita hours of non compulsory training at Group level	Average non compulsory training hours x employee	2025	Almost 35% increase
S.4	Development of a Group global mobility program	_	2025	Program launch

⁵ (Total n° of employees injuries above 1 day / Total n° of hours worked) x 200,000

⁶ Please refer to Non-financial statements as of 31 December 2019, 2020 and 2021 for details

"SOCIAL"
	Action	KPI	Timing	Target	Reference SDG
	Draft of supplier evaluation model according to environmental and		2023	Pilot project conclusion
S.5-6	social criteria (pilot project) Model extension at Group level	_	2024	Extension to 100% Italian manufacturing entities
S.7	Working environment assessment to promote diversity& inclusion principle (pilot project)	_	2025	Pilot project conclusion

The Governance actions aim to integrate in Group strategy the ESG fundamental principles and therefore to create the value and organisational framework. Their implementation will follow the natural timeline envisaged for the Group and its subsidiaries with 023 annual shareholding meeting as the first important milestone.

"GOVERNANCE"
	Action	KPI	Timing	Target	Reference SDG
G.1	Establishment of Board "Sustainability committee" and adoption of relevant regulations	_	1H2023	Establishment of Board "Sustainability committee"
G.2	Code of Ethics revision to adopt ESG principles	_	1H2023	Code of Ethics revision
G.3	Succession plan formalisation	_	2023	Succession plan formalisation
G.4	Tax compliance consolidation in line with tax best practices	_	2024	Tax compliance model consolidation and best practice alignment
G.5	Annual update of information required GRI 207-4 on Country-by Country Reporting	_	Annual	Country-by Country reporting

"GOVERNANCE"
Action		KPI	Timing	Target	Reference SDG
G.6	"ESG Journey" communication updating	_	Annual	Communication updating

Ilario d'Enza (RE), 5 October 2022 On behalf of the Board of Directors Fulvio Montipò, Chairman

This press release contains, or may contain, forward-looking statements that are based on current expectations and projections made by the Interpump Group with regard to future events. By their nature, these are inherently subject to a degree of risk and uncertainty. Such declarations relate to events and depend on circumstances that may or may not occur in the future and, as such, it would be inappropriate to rely on them unduly. Actual results may differ significantly from those envisaged in such declarations for many reasons, including the constant volatility and further deterioration of the capital and financial markets, changes in macroeconomic conditions and economic growth, other changes in business conditions, changes in regulations and in the institutional context (in both Italy and other countries), and many additional factors, the majority of which are beyond the control of the Group.

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The Company's website will also make available a number of slides that present the Interpump Group ESG Journey 2023-2025. These will be illustrated today, at 5.30 p.m. CET, during a conference call with and audiowebcast to the financial community.

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Media Relations: Investor Relations: Moccagatta Associati Elisabetta Cugnasca Tel. +39 02 8645.1695 Tel. +39 0522-904433 segreteria@moccagatta.it ecugnasca@interpumpgroup.it