DESIGN-LED
SUSTAINABILITY

For the latest news, visit our
website: marelli.com

Marelli Sustainability Report 2023

INTRODUC T ION

CONTENTSINTRODUCTION
Contents

01

Introduction

02

Message from the CEO

04

01

Marelli Sustainability Report 2023

P16–25

Advanced Mobility
and Innovation

P26–39Environmental
Management

Design-Led Sustainability Through:– Our Technology06
– Co-Creation and Partnerships

08– Our ESG Approach10

Our Sustainability Strategy= EPS + ESG

11Design-Led Sustainability
Through Our ESG Approach

12

Materiality Assessment

13

Stakeholder Engagement

14

P40–49
Responsible
Corporate
Citizen

P50–67
Marelli People

MARELLI PEOPLE

ENVIRONMENTAL MANAGEMENTMARELLI APPENDIX

Battlefields17
Innovation Strategy18
Design for Sustainability23
Product Safety and Quality:– A Proactive and Preventative Strategy24– Elevating Standards and Enhancing
Performance25

INTRODUCTION

For the latest news, visit our
website: marelli.com

ADVANCED MOBILITY
AND INNOVATION

Contents01
Introduction02
Message from the CEO04
Design-Led Sustainability Through– Our Technology06– Co-Creation and Partnerships08– Our ESG Approach10
Our Sustainability Strategy = EPS + ESG11
Design-Led Sustainability ThroughOur ESG Approach12
Materiality Assessment13
Stakeholder Engagement14

Climate Change Action27
Energy Management30
Waste Management33
Water Conservation35
Toxic Emissions38
Biodiversity39

RESPONSIBLE CORPORATE CITIZEN

Sustainability Governance41
Respect for Human Rights42
Data Responsibility and Cybersecurity45
Sustainability in the Supply Chain47

Employee Engagement and Well-Being51
Prioritizing Employee Well-Being55
Training and Development57
Diversity and Inclusion59
Occupational Health and Safety62
Labor Relations64
Social Contribution66

About This Report69
Conclusions69
Board of Directors
70
Material topics
70
GRI71
Independent Practitioner’s
Assurance Report100
Independent Practitioner’s
Assurance Report on Marelli’s
Greenhouse Gas (GHG) Statement102

INTRODUC T ION

INTRODUCTIONINTRODUCTION
Contents

01

Introduction

02

Message from the CEO

04

Design-Led Sustainability Through:– Our Technology06
– Co-Creation and Partnerships

08– Our ESG Approach10

Our Sustainability Strategy= EPS + ESG

11Design-Led Sustainability
Through Our ESG Approach

12

Materiality Assessment

13

Stakeholder Engagement

14

02

Marelli Sustainability Report 2023

Our purpose

Let’s push beyond
boundaries together.
We aspire to shape
future mobility
dreams and turnthem into reality.
For more information
visit: www.marelli.com/company-profile/

DESIGN-LED
SUSTAINABILITY
THROUGH

P06–07
Our
Technology

P08–09Co-Creation &Partnerships

P10

Our ESGApproach

For the latest news, visit our
website: marelli.com

INTRODUC T ION

03Marelli Sustainability Report 2023

INTRODUCTION CONTINUEDINTRODUCTION
Contents

01

Introduction

02

Message from the CEO

04

Design-Led Sustainability Through:– Our Technology06
– Co-Creation and Partnerships

08– Our ESG Approach10

Our Sustainability Strategy= EPS + ESG

11Design-Led Sustainability
Through Our ESG Approach

12

Materiality Assessment

13

Stakeholder Engagement

14

Marelli is a strong,
independent
technology partner
to OEMs worldwide.

10,573m
EUR

24

197

countries we
operate in

43,585
employees

locations coveredin the report

1,606,588m
JPY

WHO WE ARE

For the latest news, visit our
website: marelli.com

Marelli is innovating the future ofmobility through co-creation withour customers and partners. Our
technology drives differentiatedvehicle personality and sustainable
vehicle performance, with a focus
on tools that enable the softwaredefined vehicle. We are driven by amulti-cultural mentality, fueled by
the talent and creativity of 43,585
employees across Asia, Europe,
Africa and the Americas. In 2023,
Marelli generated revenues of JPY
1,606,588m (EUR 10,573m).

WHAT WE DO

Marelli supplies most major
automotive manufacturers in Asia,
Europe, and the Americas. Our
businesses include automotive
lighting and sensing, electronicsystems, interior experience,
propulsion solutions, ride dynamics,
green technology solutions, andaftermarket. Through Marelli
Motorsport, we catalyze innovationthat can transition from race toroad, with a focus on enabling safer,more sustainable mobility.

THE FUTURE OF MOBILITY

The future of mobility is being
accelerated by a number of global
trends. While electrification is
evolving further, the shift towards
the software-defined vehicle is thenext revolution transforming vehiclearchitectures. Future vehicles need
to offer a revolutionary experiencein terms of personalization, newservices, safety, and cutting-edge
technologies, while ensuring thatthese solutions are sustainable andcan protect customer privacy.
Read more about themegatrends driving
the industry
see page 17

ENABLING ASUSTAINABLE FUTURE

As we continue to transform andgrow, sustainability and resiliency
remain at the heart of our businessstrategy. This is evidenced byour comprehensive “Design for
Sustainability” principles, which
inform every step in our value
chain, ensuring we are designingand co-creating a sustainablemobility future.
Today, 37% of our innovation
projects implement Design for
Sustainability criteria, with a goalof reaching 100% by 2025.

INTRODUC T ION

MESSAGE FROM THE CEOINTRODUCTION
Contents

01

Introduction

02

Message from the CEO

04

Design-Led Sustainability Through:– Our Technology06
– Co-Creation and Partnerships

08– Our ESG Approach10

Our Sustainability Strategy= EPS + ESG

11Design-Led Sustainability
Through Our ESG Approach

12

Materiality Assessment

13

Stakeholder Engagement

14

For the latest news, visit our
website: marelli.com

04

Marelli Sustainability Report 2023

DRIVINGSUSTAINABILITY@ SPEED

Our efforts last year
brought us closer to achieving
our short-term targets for
2025, which are fundamental toreaching our mid-term goal of
decarbonizing our operations
by 2030, and our long-term goalof ensuring net zero emissions,
including our supply chain, by
no later than 2045. I’d especiallylike to see an acceleration of
the latter as I firmly believethat we can be faster.
David Slump,
President and CEO

And we really started co-creatingwith our customers and partners byengaging early in the design processof new vehicles to drive future
developments and collaborating on
new solutions. This new approach,as well as our latest innovations,are really resonating with vehicle
makers worldwide.

2023 was about making Marelli fit
for the future. A guiding question
for us is how do we becomesustainable in the broadest sense– not only from an environmental,social and governance perspective,
but also from a business andfinancial perspective. I am proud of
the huge progress we have madein becoming a resilient, profitableand future-ready company thanks
to the dedication and hard workof our people. Together, the entire
Marelli team has unlocked thepotential of a new culture definedby agility and speed.

Our new Marelli speed is also
reflected in the progress we’ve madeon our sustainability journey. We arecontinuously pushing ourselves andit is this mindset that has enabled
us to make rapid strides. Just two
years ago we were lagging behind
our competitors – and in April 2024
we received an EcoVadis Gold Medal.
This is a great recognition of what
we have achieved in a very shorttime. It positions us among the top
5% of all companies included in
the rating conducted by EcoVadis,
the worldwide leading provider ofbusiness sustainability ratings.

Some of our key accomplishments
last year: we optimized ourorganization, making it fit for purposeand empowering our people.
We simplified our processes byleveraging digitalization and the huge
potential of artificial intelligence. We
also brought innovation to a newlevel by focusing on solutions forthe software-defined vehicle, vehicle
personality and vehicle performance.

Our efforts last year brought us
closer to achieving our shortterm targets for 2025, which are
fundamental to reaching our
mid-term goal of decarbonizing
our operations by 2030, and ourlong-term goal of ensuring net zero
emissions, including our supply
chain, by no later than 2045. I’despecially like to see an accelerationof the latter as I firmly believe that
we can be faster.
Sustainability is about working
towards tangible, comparable
goals. We committed in 2023 to
the UN Global Compact and to
the near-term and net-zero goalsof the Science‑Based Targets
initiative, where we are currently
finalizing our first submission.
Our sustainability efforts arefocused on four core areas:

PRODUCTS ANDTECHNOLOGIES:SUSTAINABLE BY DESIGN

We strongly believe that sustainable
solutions also pay off economically.
We committed to integrating
sustainability into every aspect of
Design-Led Innovation, which gives
vehicle makers the flexibility toefficiently create driving experiencesthat resonate with vehicle users.
Key to our Design for Sustainability
approach is a holistic view onmaterials selection, energy efficiency,
waste reduction, and recyclability.
Close to 40% of our innovation
projects last year already met Design
for Sustainability criteria and we are
well on our way to extend these to100% of our projects next year.

OPER ATIONS: ACCELER ATINGPROGRESS ON OURSUSTAINABILITY GOALS
Our operations play a crucial rolein our sustainability efforts andimpact. Looking at our resultsfor 2023, we exceeded our water
intensity and energy efficiency
targets. We also completed ourself-assessment for the Social
Accountability Standard (SA8000)
for all our sites and conducted a
climate risk assessment, which
provided valuable data and helped
us refine our strategic approach.
Speed, discipline and multi-tasking
are essential to effectively drive
sustainability in operations, as
we need to pay the same level ofattention to many things in parallel– e.g. climate resilience, energy
efficiency, health and safety, labor
conditions and human rights.

INTRODUC T ION

MESSAGE FROM THE CEO CONTINUEDINTRODUCTION
Contents

01

Introduction

02

Message from the CEO

04

Design-Led Sustainability Through:– Our Technology06
– Co-Creation and Partnerships

08– Our ESG Approach10

Our Sustainability Strategy= EPS + ESG

11Design-Led Sustainability
Through Our ESG Approach

12

Materiality Assessment

13

Stakeholder Engagement

14

SUPPLY CHAIN: MAKINGSUSTAINABILITY A
SOURCING PRIORITY

Sustainability requirements are
now a core element of our sourcing
process. We are challenging ourpartners along the supply chain
to provide tangible data and toaccelerate their sustainability efforts.
In 2023 we started conducting acomprehensive ESG assessment
for newly nominated suppliers.
While we have developed a process
to collect accurate data from our
suppliers for Scope 3 emissions,
it became evident that availability
and consistency of data is still achallenge. I can assure you that
we keep pushing to accelerate theprogress in our supply chain.

PEOPLE: PROMOTING ANENGAGING AND INCLUSIVEWORKPLACE

After implementing the necessary
measures to align our workforce withthe company’s long-term goals, ourobjective in 2023 was to establish
an inclusive workplace that drives
growth and engagement while
prioritizing the safety and well-beingof our people. We have significantly
expanded our offering for training
and development in 2023 and further
driven diversity and inclusion – forexample through establishing new
employee resource groups.
For the latest news, visit our
website: marelli.com

05

Marelli Sustainability Report 2023

Another important achievement isthat 91% of our sites have obtained
a certification according to theISO45001 occupational health andsafety standard. In 2024, we continue
to work on people-related goals – forexample equitable compensation
frameworks, transparent jobclassifications and further building
our culture by addressing thevaluable feedback in our last
employee survey.

Our people are the driving
force behind the success of oursustainability initiatives and a
motivating and encouraging
company culture is essential toachieving our goals. That’s why wehave included energy efficiency andemissions reduction targets in our
incentive program. We want ouremployees to be actively involved
and fairly rewarded for their efforts
to drive sustainability across all
aspects of our business.

WE ARE ALL IN

I am proud of the progress we havemade in 2023 and of the Marelli
team’s determination and passion.
We are all in. Transformative,
impactful sustainability is a teameffort – and we can only achieve it
together. I encourage our suppliers
and partners to join us – all people @Marelli – on our fast-paced journey
towards achieving measurable goals.
And I’d like to assure our customersof our strong dedication to cocreating solutions following Design
for Sustainability principles, as well as
continuously driving the sustainabilityof our operations and supply chain
further. Let’s progress together.
Yours sincerely,
DAVID SLUMP
President & CEO, Marelli

100%of our active production
plants completing SA8000
self-assessment

Top 5

%

EcoVadis Gold Medal, among top
5% companies in the rating37%

of ongoing projects
achieve Design for
Sustainability criteria

Our people are the driving
force behind the success of oursustainability initiatives anda motivating and encouraging
company culture is essential
to achieving our goals.

INTRODUC T ION

06

Marelli Sustainability Report 2023

OUR TECHNOLOGYDESIGN-LED SUSTAINABILITYINTRODUCTION
Contents

01

Introduction

02

Message from the CEO

04

Design-Led Sustainability Through:– Our Technology06
– Co-Creation and Partnerships

08– Our ESG Approach10

Our Sustainability Strategy= EPS + ESG

11Design-Led Sustainability
Through Our ESG Approach

12

Materiality Assessment

13

Stakeholder Engagement

14…THROUGH

62

new patents

zerorecallszero

Sustainable innovation that
protects the privacy andsafety of our customers is at
the center of everything we
do. Marelli is advancing thetechnology needed to support
the growing demand forelectric vehicles by fostering
innovation projects related toelectric powertrain solutions
and Battery Management
Systems (BMS).

product safety
and quality issues

zero
For the latest news, visit our
website: marelli.com

26

data security
breaches

active security certifications,of which 24 TISAX

We also provide GreenTechnology Solutions (GTS)
to improve both Internal
Combustion Engine (ICE), andEV performance. In addition,
we are pioneering the use of
more sustainable materials,
particularly from renewablesources, and lightweighting
solutions for our products
to reduce waste and curb
emissions.
Read more in Data
Responsibility &Cybersecurity
see pages 45–46

INTRODUC T ION

07Marelli Sustainability Report 2023

DESIGN-LED SUSTAINABILITY THROUGH OUR TECHNOLOGY CONTINUEDINTRODUCTION
Contents

01

Introduction

02

Message from the CEO

04

Design-Led Sustainability Through:– Our Technology06
– Co-Creation and Partnerships

08– Our ESG Approach10

Our Sustainability Strategy= EPS + ESG

11Design-Led Sustainability
Through Our ESG Approach

12

Materiality Assessment

13

Stakeholder Engagement

14

CASE STUDYCASE STUDYLightweight Urethane for Interior Products

Marelli named
Top Innovator

Marelli has developed a lightweightpolyurethane foam that can be applied
to all foam-in-place (FIP) applications.
We are targeting the main dashboard
panel as the primary use case forthe foam, which reduces overallcomponent weight by up to 40%,decreases foam thickness by 50%,
and reduces raw material costs by
20%, as compared to standard foams
in use. The new foam also reduces theenvironmental impact of automotive
production, through its reduced
material usage per part, lower density,and 80% reduction in volatile organic
compounds (VOCs).

Considering plastic parts, likedashboard panels, are an area where
it is difficult to save weight without
sacrificing strength, durability, orfunction, the sustainability benefits
the foam provides are paramount. The
application of this new foam, as for any
FIP product, will not require changes
to the shop floor and will immediately
provide a lighter-weight product. This
presents a significant opportunity forthe automotive industry to improve
the performance and efficiency of
production vehicles, including EVs.

20% 80%
raw material cost
reduction

reduction in VOCs

40% 50%weight reduction

For the latest news, visit our
website: marelli.com

decrease in foam
thickness

The CLEPA Innovation Awards named
us a “Top Innovator” in 2023 for our
HorizonView* technology, which islighter and more energy efficientthan a traditional head-up display.

* formerly Diorama Display.

INTRODUC T ION

CO-CREATION AND
PARTNERSHIPSDESIGN-LED SUSTAINABILITYINTRODUCTION
Contents

01

Introduction

02

Message from the CEO

04

Design-Led Sustainability Through:– Our Technology06
– Co-Creation and Partnerships

08– Our ESG Approach10

Our Sustainability Strategy= EPS + ESG

11Design-Led Sustainability
Through Our ESG Approach

12

Materiality Assessment

13

Stakeholder Engagement

14…THROUGH

We are co-creating thefuture of mobility withour customers, suppliers,
partners, and through our
31 association memberships.
Software-defined vehicles,
alternative powertrains,advanced connectivity,
and autonomous driving
are rapidly reshaping needs,
designs, and architectures
for next-generation vehicles.
We are developing flexible,
modular, competitive, andsustainable solutions thatenable differentiation andare customizable by thevehicle owner.

31

association
memberships
worldwide

For the latest news, visit our
website: marelli.com

08

Marelli Sustainability Report 2023

28

quality awards received
from customers

INTRODUC T ION

09

Marelli Sustainability Report 2023

DESIGN-LED SUSTAINABILITY THROUGH CO-CREATION AND PARTNERSHIPS CONTINUEDINTRODUCTION
Contents

01

Introduction

02

CASE STUDYCASE STUDY

Message from the CEO

04

Active suspension
innovation recovers
energy and needs no oil

Our strategy for resins:
A successful outcome fromcollaboration with our suppliers

Design-Led Sustainability Through:– Our Technology06
– Co-Creation and Partnerships

08– Our ESG Approach10

Our Sustainability Strategy= EPS + ESG

11Design-Led Sustainability
Through Our ESG Approach

12

Materiality Assessment

13

Stakeholder Engagement

14

We were granted the “Commendable”
honor for our Fully Active
Electromechanical Suspension Systemat the Digital Engineering Awards in
2023, in the “Engineering Product of
the Year” category.
Our advanced system autonomously
adjusts each wheel’s suspension to
optimize vehicle comfort, improving safety
and handling by swiftly reacting to various
driving and road conditions.
The technology can be applied to EVs andvehicles with internal combustion engines(ICE). The suspension system is completely
oil-free and delivers up to 80% energy
efficiency, as compared to passive orsemi-active systems, and is therefore able
to harvest energy. It also occupies lessvolume than other available technologies,
providing greater freedom in vehicle
interior design.

For the latest news, visit our
website: marelli.com

12%of mass sustainable resinsused in new projects in 2023
vs 10% initial target
Resins are an important contributor to
our upstream scope 3 emissions, which
is why we have devoted time and effort
to finding more sustainable alternatives
for them that will also improve productrecyclability. Working closely with
our supply chain, including runningworkshops with suppliers in Italy
and Japan, we have developed
innovative solutions to improve thesustainable credentials of the resins
we use achieving 12% of mass for new
projects in 2023, exceeding our targetof 10%. The output of this work is a
new strategy that applies throughout
the company and ensures that theresins specified in our designs are assustainable as they can be.

Our resins workshops are a good
example of our collaboration withpartners, suppliers, and customers inpursuit of opportunities for reuse andrecycling of components.
In our quest to strengthen Marelli’s
sustainability profile throughout our
supply chain, we defined a companywide strategy for the use of resins in
products. In 2023, we introduced a
new resins strategy, meticulously
curated in collaboration with our
suppliers. In line with our dedication
to refining materials sourcing, thisinitiative is aimed at replacing
high-emission resins with lower
carbon alternatives without
increasing costs for our customers.

INTRODUC T ION

OUR ESGAPPROACH
DESIGN-LED SUSTAINABILITYINTRODUCTION
Contents

01

Introduction

02

Message from the CEO

04

Design-Led Sustainability Through:– Our Technology06
– Co-Creation and Partnerships

08– Our ESG Approach10

Our Sustainability Strategy= EPS + ESG

11Design-Led Sustainability
Through Our ESG Approach

12

Materiality Assessment

13

Stakeholder Engagement

14…THROUGH

Gold & Silver
Silver medal (67/100) in 2023 and Gold medal(73/100) in 2024 from EcoVadis

91%

94%

51

96

39%

12%

of Marelli production
sites certified according
to ISO 45001%

of energy consumption
occurred at plants covered
according to ISO 50001

renewable electricity

For the latest news, visit our
website: marelli.com

10

Marelli Sustainability Report 2023

B Scoreof Marelli manufacturing
sites certified according
to ISO 14001 standard

90%

participation rate in
our Great Place toWork survey%of targeted employees weretrained on the principles of
our Code of Conduct

recycled resinsfrom CDP for Climate Change andWater Security Report in 2023

66%

of new nominated suppliers
covered by ESG assessment in 2023

Through our Innovation
Management Process (IMP), we
ensure our teams can integratesustainability and ESG parametersat the earliest phases of productinnovation projects. For instance,
in 2023 we released dedicatedcarbon reduction KPIs to target
emissions reductions from theconcept creation phase.
We also completed our selfassessment for all our active
production sites against the Social
Accountability Standard (SA8000).
This generated insights to help
us bridge our gaps against ESG
standards. This involved enacting
enhanced policies, procedures,
and actions across diverse areas
like human rights, labor standards,
environmental practices, climate
action, ethical business conduct,
and procurement. We succeeded inaddressing 50% of the previously
recognized gaps against ESG
standards. Furthermore, thisadvancement contributed to an
improved EcoVadis rating, earning
Marelli a Gold Medal and a scoreof 73/100 in April 2024, based on
actions put in place in 2023.
Read more about ourinnovation strategy
see pages 18–22

INTRODUC T ION

11Marelli Sustainability Report 2023

OUR SUSTAINABILITY STRATEGY = EPS + ESG

INTRODUCTION
Contents

01

Introduction

02

Message from the CEO

04

Design-Led Sustainability Through:– Our Technology06
– Co-Creation and Partnerships

08– Our ESG Approach10

Our Sustainability Strategy= EPS + ESG

11Design-Led Sustainability
Through Our ESG Approach

12

Materiality Assessment

13

Stakeholder Engagement

14

Marelli’s sustainability strategy aims to secure Efficient Profitable
Sustainability (EPS) by ensuring that sustainable innovation andresponsible business practices are at the heart of all our activities, and byadhering to comprehensive ESG compliance and performance monitoring.

EPS encapsulates resource optimization, cost-effective compliance, andcustomer alignment, driving growth while fostering a sustainable andresilient business model that upholds environmental stewardship forthe brand’s enduring market value.

Our sustainability drivers

Climate change

Circular economy

Social impact

Our focus areas
Sustainability of our operations

Setting ambitious targets for sustainable
use of resources; embedding ethicalconduct and compliance with humanrights and safety standards.

Product innovation

Developing innovative technologies for safeand environmentally-friendly mobility.

Supply chain

Co-creating innovative and sustainable
solutions for the future with suppliers while
ensuring they adhere to strict ethical, labor,
and health and safety standards.

For the latest news, visit our
website: marelli.com

How we do it
Innovation + Responsible business practices
All measured against international ESG standards such as GRI, SASB, TCFD, GHG Protocol, CDP, UNGC, EcoVadis, etc.1
1

Global Reporting Initiative, Sustainability Accounting Standards Board, Task Force on Climate-Related Financial Disclosures, Greenhouse gases, Carbon Disclosure Project, United Nations Global Compact.

INTRODUC T ION

12Marelli Sustainability Report 2023

DESIGN-LED SUSTAINABILITY THROUGH OUR ESG APPROACHINTRODUCTION
Contents

01

Introduction

02

Message from the CEO

04

Design-Led Sustainability Through:– Our Technology06
– Co-Creation and Partnerships

08– Our ESG Approach10

Our Sustainability Strategy= EPS + ESG

11Design-Led Sustainability
Through Our ESG Approach

12

Materiality Assessment

13

Stakeholder Engagement

14

At Marelli, our strategy merges
sustainability with innovation forreal impact. We’ve set clear 2025
targets in three key areas:
Climate Change: We’re aiming
for carbon neutrality in ouroperations by 2030 and net-zerocarbon emissions across our
supply chain by 2045.
Circular Economy: Our goal
is to reduce waste and use
more recycled materials. We’reredesigning products to cut
emissions and boost reuse
and recycling.
Social Impact: We’re enhancing
workplace safety and ethicalpractices, aiming for ISO 45001
and SA8000 certifications. We’reworking towards equal female
representation in leadership roles
and ensuring our suppliers meetstrict ESG standards.

Results 2023:

Target not achievedStart point 2021/2022

Progress 2023

2023
Target2024
Target2025
TargetEmissions

4,782 kton CO2eq

4,605 -3.7%

-9%

-17%

-30%

Scopes 1 & 22,5415 kton CO2eq

386

-10%

-35%

-60%

Scope 3.1 (Direct Materials)

4,002 kton CO2eq

3,908

-5%

-15%

-25%

Scope 3.4 (Logistics)

365 kton CO2eq

311

-15%

-18%

-25%

Energy intensity2,566 MJ/WH

62.2-4.4% -5.7%

-8.5%

-10%

Renewable electricity2,5

15%

30%

39%

55%

80%

Water intensity1,2,5

32 L/WH

-12%

20%

-23%

-25%

Less waste2,585,102 tons

-6%

-10%

Recycled/sustainable content
for resin – all products
nominated from 2024

0

10%

12%

17%

>20%

Innovation projects –Design for Sustainability

0

25%

37%

70%

100%

Product development projects –0
Design for Sustainability

20%

37%

55%

75%

Production sites certified
ISO 45001 (OH&S)2,6

32%

68%

91%

95%

>90%

SA8000 certified (in criticalcountries)30

116 plants self-assessed100%

16 plants
certified

44 plants
certified

Women in leadership positions2,4

11%

22%

25%

Suppliers coveredby ESG assessment

26%

50%

66%

70%

80%

Suppliers’ plants nominatedwith ISO 14001

22%

40%

71%

75%

75%

Suppliers with no criticalresiliency risk

98.7%

99%

99.96%

99.96%100%

CLIMATE CHANGE

We are focused on reducing
our carbon footprint throughenergy efficiency, renewables
and water conservation,aligning with global
climate initiatives.

-7%
-2.3%

–7

25.6

Target achieved or over-achieved

CIRCULAR ECONOMY

We aim to reduce waste
and increase the use ofrecycled materials, focusing
on sustainable design anddevelopment to support
responsible production
and consumption.



-0.9%

-3.2%

84,322

SOCIAL IMPACT
1	The initial target was upgraded from -14% to-25% in January 2024 after we overachieved
the 2023 results.
2	Targets were verified by a third party.

For the latest news, visit our
website: marelli.com

3

Starting point 2023.

4

Directors and above.

5	Boundary is 99 production sites compared
to report boundary of 111 sites; sites
combined or closed in 2023 due to footprint
optimization are excluded.
6	Boundary is the same covered in this reportfor Health and Safety.
7	Target included on the dashboard inearly 2024.
The remaining targets follow the same
boundary of this report.

We strive for health and safety,
and ethical labor conditions
via ISO 45001 and SA8000
certifications, gender parity inleadership, and ESG-compliant
supply chains.

15%

18%

INTRODUC T ION

MATERIALITY ASSESSMENT
02

Message from the CEO

04

Design-Led Sustainability Through:– Our Technology06
– Co-Creation and Partnerships

08– Our ESG Approach10

Our Sustainability Strategy= EPS + ESG

11Design-Led Sustainability
Through Our ESG Approach

12

Materiality Assessment

13

Stakeholder Engagement

14

In the last 24 months, we have been fully
focused on accelerating our efforts with regard
to sustainability integration at Marelli. In 2022,
we updated our 2019 materiality assessment,
to align with evolving ESG standards.
The 2022 process included theintegration of the principles of adouble materiality approach inrelation to our business “enterprisevalue”, as well as the impact on our
stakeholders.
The 2022 assessment updated andregrouped existing topics to reflect
our findings and also added three
new topics: Material Sourcing, Waste
Management, and Competitive
Behavior – emphasizing theirimportance alongside 15 previously
identified material issues.
The assessment included surveys
with top customers, consultation
with the European Associationof Automotive Suppliers (CLEPA),
interviews with our shareholders,and comparison with competitors’materiality assessments. Following
the identification of the issues,
the CEO and members of ourSustainability Council evaluatedthe potential impact of each topic
on enterprise value, classifying
them into low, medium, and highimpact categories.

AN ENHANCED 2025
ESG ROADMAP

Following the materiality review, weassigned an executive owner to each
topic. We aim to measure the impact
of sustainability on Marelli’s businessand plan to improve ESG processes
and performance moving forward.

We have grouped these topics
into four key areas of focus for thebusiness: Innovation, Environment,
Responsible Corporate Citizen andOur people.

The final matrix was approvedby the board via the Nomination,
Governance and Human CapitalCommittee. This has guided our2025 ESG roadmap, enabling us
to identify clear actions to be
implemented by the end of 2025.
This report shows our progresson the material topics which wereidentified over the course of 2023.

MATERIALITY MATRIX

HIGH

01

Introduction

10

Climate change & action/
Energy Management

9

Diversity and

The consolidated feedback fromstakeholders has led to thecreation of a new materiality
matrix with 18 material topics
that inform our strategic focus.
This matrix classifies topics into
three action groups: first, we aresetting targets and defining KPIs
for nine key priorities including
climate action and diversity;
second, we’re expanding ourmonitoring and policy efforts forfive other areas like human rights
and data responsibility; and third,
for issues such as toxic emissions
and biodiversity, we will ensurecompliance with existing regulations
and laws. The matrix thus guides
our corporate efforts to address
important environmental, social,and governance (ESG) issues.

T

Water

8

T Inclusion

Respect for
Human Rights

T

T

Circular Economy Design

T Sustainability in supply chain

T Occupational
health & safety
Data
responsibility

Material sourcing

Labor
relations

T
T

Governance and compliance
Product safety & quality

Competitive behavior

7
IMPACT ON STAKEHOLDERS

Contents

Employee engagement

T Waste Management

Social contribution

6
PRIORITIZE(deﬁning KPIs andsetting targets)

5
Toxic emissions

4

EXPAND EFFORTS(monitoring, deﬁning policies,
engaging the top management etc.)3

Biodiversity

COMPLIANCE(following the local laws)

2
1
LOW

INTRODUCTION

For the latest news, visit our
website: marelli.com

13

Marelli Sustainability Report 2023

0

1

2

LOW
Environment

3

4

5

6

IMPACT ON ENTERPRISE VALUE
SocialGovernance

T

Targets deﬁned

7

8

9

10
HIGH

INTRODUC T ION

STAKEHOLDER ENGAGEMENTINTRODUCTION
Contents

01

Introduction

02

Message from the CEO

04

Design-Led Sustainability Through:– Our Technology06
– Co-Creation and Partnerships

08– Our ESG Approach10

Our Sustainability Strategy= EPS + ESG

11Design-Led Sustainability
Through Our ESG Approach

12

Materiality Assessment

13

Stakeholder Engagement

14

For the latest news, visit our
website: marelli.com

14

Marelli Sustainability Report 2023

Our value chain is based on a complex network of
relationships with a broad range of stakeholders.
Our stakeholders include suppliers,
partners, customers, shareholders,local communities, tradeassociations, and employees.

We continue to engage withour customers and suppliers,
incorporating sustainability as
part of our regular conversations.

Stakeholders

Engagement activities

Customers– Face-to-face meetings– Co-creation workshops

Shareholders– Periodic meetings– Surveys

Suppliers– One-to-one meetings– Site visits– Contracts– Self-assessments, audits,and qualifications

Local
communities
and nonprofits– Donations and gifts– Scholarships– Volunteering– Charity and fundraising– Awareness campaigns

Media– Face-to-face meetings– Media and tech events– Media briefings

Employees– Training– Internal communications– Career reviews– Development plans– Performance reviews– Townhalls

Trade associations– Memberships– Partnerships– Continuous dialogue

Public administration
and regulatory authorities– Consultations– Continuous dialogue
and periodic meetings– Compliance withlocal requirements

In 2024, we plan to expand our assessments to noncontrolled joint ventures, reinforce our alignment
with the United Nations Sustainable Development
Goals when creating or updating our policies andprocedures, extend audits at our suppliers’ plants,
and invest in artificial intelligence to actively
monitor 100% of active suppliers, both for risk
resilience and ESG performance.
Denise Lana, Global Head of Sustainability– Fairs and exhibitions

INTRODUC T ION

15Marelli Sustainability Report 2023

STAKEHOLDER ENGAGEMENT CONTINUEDINTRODUCTION
Contents

01

Introduction

02

Message from the CEO

04

Design-Led Sustainability Through:– Our Technology06
– Co-Creation and Partnerships

08– Our ESG Approach10

Our Sustainability Strategy= EPS + ESG

11Design-Led Sustainability
Through Our ESG Approach

12

Materiality Assessment

13

Stakeholder Engagement

14

MARELLI COLLABORATIONSMarelli actively participates inindustry collaborations in several
regions. In 2023, we joined Drive+,a platform where automotive
Tier‑1 suppliers, OEMs andsupplier associations can engage
in a systematic dialogue aboutcommon sustainability challenges tomeet OEM expectations and cascadethem into their own supply chains.

UNITED NATIONSGLOBAL COMPACT

We proudly support the Ten Principlesof the United Nations Global Compact
concerning human rights, labor,
environment, and anti-corruption.

By endorsing the UN Global Compact
in early 2023, we have further aligned
our efforts with the global agenda,
embedding these principles into ourcompany’s strategy, culture, anddaily activities. In 2023, we started
to embed relevant Sustainable
Development Goals (SDGs) into
our 2025 roadmap for all material
topics mapped.

We are also committed to ensuringthat nominated suppliers will follow
our commitments, thanks to thelaunch of our new Supplier Codeof Conduct in 2023.

MARELLI PARTICIPATES IN 31 ASSOCIATIONS ACROSS EUROPE, THE UK, USA, BR AZIL AND JAPAN:
JAPAN
●
●
●
●
●
●
●
●
●
●
●
●
●
●
●
●
●
●

For the latest news, visit our
website: marelli.com

Japan Auto Parts Industries Association (JAPIA)JAPIA Future Mobility Study Group (MOBIKEN)
Japan Society of Automotive Engineers (JSAE)
Automobile Business Association of Japan (ABA-J)
AICE (Research Association of Automotive Internal
Combustion Engines)
Nippon Keidanren (Japan Business Federation)
Japan External Trade Organization (JETRO)
Saitama University, Industry-Academia-Government
Collaboration Council
Tokyo University of Science
Saitama Employers’ Association
Saitama Keizai Doyukai
Saitama Chamber of Commerce and Industry
Sai no Kuni Land Study Group
Saitama Industrial Club
Saitama Nikkei Newspaper Meeting
Kanagawa Employers’ Association
Waseda University Mobility Study Group
Thermal Management Materials and Technology
Research Association (TherMAT)

USA
●
●

Motor Equipment Manufacturers Association (MEMA)
Carnegie Mellon Next Manufacturing Consortium

EUROPEAN UNION & UK

Cluster Lombardo della Mobilità (CLM)
European Association of Automotive Suppliers (CLEPA)● CSR Europe (Drive+)● Italian Association of the Automobile Industry (ANFIA)● German Association of the Automotive Industry (VDA)●	Fédération Internationale de l’Automobile Industry
Working Group (FIA IWG)
● North East Automotive Alliance (NEAA)● Plug and Play – Motor Valley Accelerator (MVA)
corporate anchor partner●●

BR AZIL●●●

National Association of Brazilian Auto Parts
Manufacturers (Sindipeças)
Automotive Engineering Association (AEA)
National Association of Auto Parts Distributors (Andap)

ADVANCED MOBILI T Y
AND INNOVAT ION

02

ADVANCED MOBILITY
AND INNOVATION
Battlefields

17

Innovation Strategy

18

Design for Sustainability

23

Product Safety and Quality:– A Proactive and Preventative
Strategy

24–E levating Standards andEnhancing Performance25

16

Marelli Sustainability Report 2023

ADVANCED MOBILITY
AND INNOVATION
Innovation fuels our journey atMarelli, sustainability and safety are
the key drivers shaping the futureof mobility. Together, we co-create
tomorrow.
Joachim Fetzer,
Chief Technology andInnovation Officer

For the latest news, visit our
website: marelli.com

Battlefields

17

Innovation Strategy

18Design for Sustainability

23

Examples of Design for
Sustainability in action

23

Product Safety and Quality:
A Proactive and Preventative Strategy

24

Product Safety and Quality: ElevatingStandards and Enhancing Performance25

ADVANCED MOBILI T Y
INTRODUC
T ION
ANDINNOVAT
ION

17

Marelli Sustainability Report 2023

BATTLEFIELDSADVANCED MOBILITY
AND INNOVATION
Battlefields

17

Innovation Strategy

18

Design for Sustainability

23

Product Safety and Quality:– A Proactive and Preventative
Strategy

24–E levating Standards andEnhancing Performance

25

At Marelli, we’ve aligned our technology and innovation roadmaps with what
we like to call “battlefields,” areas of current and future industry disruption
where we have significant opportunities to compete and win. All products
within our broad portfolio support one or more battlefields:

BATTLEFIELD #1– POWERTR AIN

We support the transition to hybrid
and electric vehicles with technology
from our propulsion solutions andgreen technology solutions business
units, including our domain control
unit, battery management, andthermal management systems.
– ELECTRIFICATIONBATTLEFIELD #2– SENSING & SOFTWARE

Technology from our automotive
lighting and sensing, electronicsystems, and interior experiencebusinesses play here, driving
differentiated vehicle personality,
while supporting connectivity,
autonomy, and advanced safety.
– SOFTWARE-DEFINED VEHICLE– CYBERSECURITY– SENSOR INTEGRATIONBATTLEFIELD #3– VEHICLE ARCHITECTURE

We support the transition tosimplified, customizable vehicle
E/E architectures with our Core
central computing and Zone
control units, our Digital Twin, anddecoupled software and hardware,
giving OEMs design flexibility while
increasing speed to market.
– E/E EVOLUTION– ADVANCED COMFORT– CONNECTIVITY– PERSONALIZATION– SAFETY– AUTONOMY

BATTLEFIELD #4– ESG

We’re developing new products
and platforms across all domains
with a focus on sustainability.
Our Lean hardware development
platform includes products with
70% pre-configured content, fewer
components, reduced emissions,and reduced weight, compared
to traditional products.

LeanLight– DECARBONIZATION– ECO & NATURAL MATERIALS– LIGHTWEIGHT SOLUTIONS– REPAIRABILITY– INTELLIGENT EFFICIENCY– CIRCULAR ECONOMY

LEAN PLATFORM DRIVES COST & SUSTAINABILITY BENEFITS
Affordability ranks among the
top decision-making factors forautomakers today*. Cost control
becomes critical as OEMs strive
to be more competitive while
meeting consumer demand forincreased features in new cars.
Marelli addresses these challenges
through our platform strategy,emphasizing cost-effectiveness,
simplicity, and efficiency.

For the latest news, visit our
website: marelli.com

LeanDisplay*

In 2023, we introduced threehardware development platforms –Lean, Pro, and Elite, each tailored to
distinct market segments. Platformproducts include 70% pre-definedcontent while offering customization
to meet OEM requirements.
Technologies on the Lean platform
include fewer parts and lightermaterials than traditional
products, driving reduced weightand emissions at a lower cost.

Independent, primary research conducted by Marelli.

Pro encompasses our most scalable
offerings and targets mid-range
vehicles, while Elite caters topremium and luxury segmentswith industry-leading features.

ADVANCED MOBILI T Y
AND INNOVAT ION

18

Marelli Sustainability Report 2023

INNOVATION STRATEGYADVANCED MOBILITY
AND INNOVATION
Battlefields

17

Innovation Strategy

18

Design for Sustainability

23

Product Safety and Quality:– A Proactive and Preventative
Strategy

24–E levating Standards andEnhancing Performance

25

PROGRESS IN 2023
We know that embracing market trends is crucial
to driving our innovation strategy forward.
To this end, we appointed a new China Chief Technology
and Innovation Officer (CTIO) in 2023. Fully aware of
the pivotal role China’s flourishing EV sector plays inreshaping global automotive dynamics, Marelli is poised
to leverage this vital market’s growth, reinforcing ourglobal presence. Regarding product safety, we arecontinuously striving for excellence to enhance resource
utilization. This involves tapping into our competitiveenvironment to boost resource efficiency in China.

At Marelli, we encourage a culture of innovation through a common
framework to ensure that it is managed consistently across all business
units; where employees are empowered to generate new concepts andfind innovative solutions to address new and future industry trends.
In 2023, we sharpened our
focus on sustainable innovation,
securing 62 patents and integrating

Our new focus on sustainability
as a value driver is enshrined in
our new Design for Sustainability
policy launched in April 2023.

OUR INNOVATION MANAGEMENT PROCESS
Global Technology and Innovation(T&I) activities are coordinatedcentrally by our Chief Technology
and Innovation Officer who
oversees the implementationof, and compliance with, theframework through the business
units’ heads of R&D.
Our innovation framework employs acomprehensive approach to productdevelopment, engaging all essentialfunctions right from the outset.

For the latest news, visit our
website: marelli.com

sustainability across all business
units from the onset of productdevelopment.

with the CEO, technological andproduct-related topics of strategic
importance. Attendees are invitedfrom the business unit presidents,
their direct reports, and C-suite
executives, depending on thesubject discussed. The Council isfurther advised by the External
Advisory Board (EAB), which plays
a crucial role in supporting andguiding our leadership team.

The Innovation Council convenes
four times each year to discuss,As was the case in 2022, in 2023 we
dedicated one of our four annual
Innovation Council meetings toEnvironmental Sustainability.

DESIGN FORSUSTAINABILITYINNOVATION MEETSSUSTAINABILITY

Marelli launched a new Design
for Sustainability (DfS) policy inApril 2023.

Within the criteria for innovationand product development
projects, we are ensuring thatour project teams consistently
incorporate sustainability
considerations. Supported by
our Design for Sustainability
approach, our innovation
management process (IMP)embeds sustainability into
every design phase, setting
stringent review gates to ensure
consistent adherence to oursustainability approach.

DfS is applied throughout theentire product innovation anddevelopment process and prescribes
making design choices that can
reduce carbon emissions in anyof the three Scopes. It reflects ourcommitment to a circular economy
and reducing the environmental
impact of our products throughproduct and process design,sourcing, and manufacturing.

Last year, the Innovation Council
focused on the response to therisks identified in our water andclimate change risk assessment.
It also reviewed the progress of
all our business units in design
innovations to integrate better
sustainability criteria. As an outcome,
we focused on pilot projects in all
business units to identify viable
technical solutions to phase out fossil
fuels from productive processes. In
addition, the Council evaluated thetechnological evolution needed toreach our sustainability targets bothin the short term and beyond.

ADVANCED MOBILI T Y
AND INNOVAT ION

INNOVATION STRATEGY CONTINUEDADVANCED MOBILITY
AND INNOVATION
Battlefields

17

Innovation Strategy

18

Design for Sustainability

23

Product Safety and Quality:– A Proactive and Preventative
Strategy

24–E levating Standards andEnhancing Performance25

For the latest news, visit our
website: marelli.com

19

Marelli Sustainability Report 2023

INNOVATION MEETS SUSTAINABILITY CONTINUED
By specifying the sustainability
elements of design at Marelli, theDesign for Sustainability guidelines
enable our designers to work acrossmultiple regions and business units
while at the same time adhering to
the sustainability principles we haveestablished, which are as follows:
Improve the energy efficiencyof our products and theefficiency of our plants whenmanufacturing them
● Increase the proportion ofsustainable raw materials andcomponents● Increase energy efficiency and use
energy from renewable sources● Apply modular designs so that
products’ constituent parts areeasily separated and either reused, remanufactured, or
recycled at their end of life
● Design packaging that reduces
the use of natural resources andcan be reused or recycled● Reduce the use of natural resourcesand GHG emissions from transportand other logistic activities● Eliminate, whenever technicallypossible, the use of chemical
substances that can cause harm
to human health● Create sustainable supply chains
and implement responsible
procurement practices● Specify and source locally,
whenever feasible●

As our understanding grows, we are
improving our measurement of the
impacts of Design for Sustainability.
This will help us address global
impacts by standardizing ourapproach and reconciling diverse
sourcing strategies, while honoringand embracing our culturaldifferences. We are also unifying
our digital systems for enhanced
global integration.
Each of our business units
is equipped with dedicatedresources capable ofperforming carbon footprint
calculations, monitored as partof Marelli’s Product Lifecycle(PLC) governance model. This
integration allows us to anticipate
the carbon footprint of our bill ofmaterials, production processes
and incorporate life cycle
assessment (LCA) considerations
during the product development
phase, fostering more sustainable
designs and production processes.

Through continued learningand consistent reviews, we are
implementing LCA into the very
fabric of our operations, andworking with our engineers tostrengthen LCA-focused design
capabilities. This results in credible
commitments to sustainability
and a substantial reduction inenvironmental impacts. Our Ride
Dynamics offering is alreadybest in class in terms of LCA, andwhile challenges such as regional
differences and resource allocations
exist, we are building training
programs and interdepartmental
collaborations to tackle them headon, realizing the full potential of LCAinformed product development.

ADVANCED MOBILI T Y
AND INNOVAT ION

20Marelli Sustainability Report 2023

INNOVATION STRATEGY CONTINUEDADVANCED MOBILITY
AND INNOVATION
Battlefields

17

Innovation Strategy

18

Design for Sustainability

23

Product Safety and Quality:– A Proactive and Preventative
Strategy

24–E levating Standards andEnhancing Performance

25

SUSTAINABLE INNOVATION INSIDE OUR GATESIn 2021, we launched the Marelli
Inventors Awards to encourageand celebrate our engineering andproduct development excellence.

Since 2022, sustainability is one of
the award categories. As part of thisaward, we select the best patents,
and in our final list for 2023, threeof the four best ideas provided asustainability benefit.

In 2023, the best Sustainability
Patent of the Year was awarded to
the Green Technology Solutions
team in Japan for its pioneering
work to patent a Built-in Oil Cooler.
The team applied innovativeengineering to the product’s designin a way that significantly contributes
to CO2 reduction by using lessaluminum while maintaining the
product’s functionality.

The Patent of the Year was given
to our Ride Dynamics team for
its innovative, oil-free suspension
damping system. Those innovations
are aligned with our net zeroambitions by delivering to ourcustomers lighter, cleaner, andmore affordable solutions.

In 2023, we have also presented
our groundbreaking hydrogen fuelsystem, including specific injectors
with patented design and an
advanced Engine Control Unit,
marking a significant leap towards
zero-emission hydrogen engines.

Read more about innovationsat Marelli in the Design for
Sustainability section
see page 23

SUSTAINABLE INNOVATION OUTSIDE OUR GATESOur sustainability targets are ambitious; by 2025, we aim for 100%of innovation projects to be aligned with Design for Sustainability
criteria and 75% of product development projects to implement
the same. By 2023, we have seen 37% of our innovation and productdevelopment projects meet these benchmarks, surpassing our initial
targets of 20% and reflecting our steadfast commitment.

Ready to offer

Proof of Concept

PHASE

CONCEPT CREATIONAPPLICATIONCONCEPT

PRODUCT CREATION

STAGE

IC

ES

Idea
Creation

For the latest news, visit our
website: marelli.com

Createdevelopment
concept
outline forthe selected
innovative
theme

Exploratory
Study
IG0

Searchfor new
innovativetechnologies
to be applied

IG1

FS

AE

FD

Feasibility
Study

AdvancedEngineering

Fundamental
Development

Identify theprinciple andpotentialof the newtechnology

IG2

Iterative feedback cycle

Preliminary
design anddevelopmentfor newfunction andperformance

IG3

Design anddevelopment
for mass
production

IG4

ADVANCED MOBILI T Y
AND INNOVAT ION

INNOVATION STRATEGY CONTINUEDADVANCED MOBILITY
AND INNOVATION
Battlefields

17

Innovation Strategy

18

Design for Sustainability

23

Product Safety and Quality:– A Proactive and Preventative
Strategy

24–E levating Standards andEnhancing Performance25

For the latest news, visit our
website: marelli.com

21

Marelli Sustainability Report 2023

CIRCULAR ECONOMY DESIGNThis year, our collective push towards
sustainability and a circular economy
is marked by continued learning,steady and promising progress, anda focus on foundational efforts. Yet,
we are always mindful that the pathahead is long and complex. As such,
we are committed to progressing
incrementally, responsibly, andcollaboratively, always with an eye on
the long-term impact of our actions.

We are also harnessing machinelearning to better understand how tocreate products more efficiently, withfewer resources through innovation
projects at Marelli Motorsport.

RESPONDING TO THE
CIRCULARITY CHALLENGE

Current trends are pressuring car
manufacturers to take responsibility
for reuse and recycling at the endof life (and European regulation isalready starting to legislate for this).
In response, Marelli is researching
the use of innovative materials
that are both lighter (to reducecarbon footprint during use), andrecyclable at the end of the vehicle’s
life. Successful reuse and disposal ofcomponents will require concerted
collaboration through the supply
chain, from suppliers to customers.

MATERIALS STR ATEGY

In 2023, we also refined ourmaterials strategy to help identify
active carbon footprint reductions,both in product and their
manufacturing process. As partof Design for Sustainability,
we have reshaped the criteria
for nominated suppliers in linewith our commitment to ESG
excellence. This also includes
an enhanced focus on being
safe by design, for example,
by eliminating, whenevertechnically possible, the use ofchemical substances that cancause harm to human health.

CASE STUDY

Developing lower carbon
footprint materials

By calculating the cradle-to-gatecarbon footprint of products, we
identified significant emission
contributions from materials likesteel and aluminum. We strive toselect materials with the lowest
carbon footprint, a decisionenabled and informed by using
LCA data and coordination
with suppliers.
Our Green Technology
Solutions business, for instance,
is aware that product emissions
are predominantly related
to aluminum, accounting
for approximately 81.6%
of emissions.

As we develop products primarily
composed of aluminum andplastic—often substantial in size
and weight—we have proactively
engaged with aluminum suppliers
to collect primary regional data
to inform our carbon footprint
reduction strategy. Our aim is
to lighten the weight impactof aluminum, seek out sourcesof aluminum produced using
renewable energy, known as“green aluminum”, and enhance
the recyclability factor of theplastic components. These efforts
include a meticulous selection of
suppliers based on their ability
to contribute to a lower productcarbon footprint.

ADVANCED MOBILI T Y
AND INNOVAT ION

INNOVATION STRATEGY CONTINUEDADVANCED MOBILITY
AND INNOVATION
Battlefields

17

Innovation Strategy

18

Design for Sustainability

23

Product Safety and Quality:– A Proactive and Preventative
Strategy

24–E levating Standards andEnhancing Performance25

28

Quality awards
received from
customers

Marelli wins “Best Value Contribution Award”
In August, Marelli China was honored with the “Best
Value Contribution Award” at Geely Auto’s 2023 Core
Supplier Symposium. This award recognizes Marelli’s
outstanding cooperation and professional capabilities.
The symposium invited only 30 suppliers. Marelli China’s
collaboration with Geely began as early as 2015, initially
focusing on electronic systems projects. Over time, thecooperation between both parties has continued to
expand and span various fields.

For the latest news, visit our
website: marelli.com

22

Marelli Sustainability Report 2023

Customer

Award

Country

Business unit

Plant

Geely
GM
GM
GM
Hanway
Honda
ISUZU
Jatco
JLR
Mazda
Mitsubishi
NIO
NissanNissanNissanNissanNissanNissanNissanNissanPiaggio
Stellantis
Stellantis
Stellantis
Stellantis
SUZUKI
Voyah
VW

2023 Best Quality Award Finalist
Supplier Quality Excellence Award 2022
Excellent service award for 9BQB project development quality in 2022
SQ&D Excellent Quality Award 2022
Excellence Supplier Award
Best Quality Supplier
IEMT QD Score 100 Points 3Y
QCDS supplier AwardJLR Quality Awards
2023 Top Supplier Award (Quality, Cost and Delivery)Award of Quality 2022 (Quality Target Achievement)
NIO Quality Premium Partner (NPQP)Best Quality Performance Award
Nissan Quality Award
2023 Best Quality Performance
2023 Best Supplier
PZ1A Development Quality Award
2023 Best SupplierNissan Regional Quality Award – ASEAN Regional Quality Award (Electric category)
ASEAN Regional Quality Award Finalist (Body category)Excellence Supplier AwardQUALITY ZERO DEFECT RECOGNITION
5 years 0 DEFECT (March/18 to March/23)
Excellent quality performance recognition
Quality Excellence Award
Overall Vendor System Rating – Superior Performance
Excellent Quality Award
Quality Excellent Cooperation Supplier Award 2022

MalaysiaBrazil
China
China
China
China
Thailand
China
India
ThailandThailand
China
China
China
China
China
China
China
ThailandThailand
China
BrazilBrazilBrazil
China
India
China
China

AL&S
GTS
AL&S
AL&S
PS
AL&S
GTS
GTS
RD
ELS
GTS
AL&S
GTS
GTS
IE
IE
IE
GTS
ELS
GTS
PS
GTS
RD
RD
ELS
PS
AL&S
AL&S

PenangAmparoChangchun
Wuhu
Hefei
FoshanSCAL
Wuxi
Marelli Talbros JV – Pune plant
Chonburi
Chonburi
Wuhu
Guangzhou
Guangzhou
DalianXiangyang
Wuhan
Wuxi
Chonburi
Samutprakarn
Hefei
Cabo de Santo Agostinho
GoianaGoianaGuangzhou
ManesarXiaoganChangchun

AL&S: Automotive Lighting & Sensing

IE: Interior Experience

PS: Propulsion Solutions

ELS: Electronic Systems

GTS: Green Technology Solutions

RD: Ride Dynamics

Title

Award

To

Title

Award

To

2023 Wards 10 BestInteriors & UX

Haptic dashboard in
Nissan Ariya

MarelliBest Value Contribution
Award 2023

Marelli
China

Three Stars of the FIA
Environmental Accreditation
Programme

Best practices and continuous
improvement through theimplementation of an effective
environmental management system

Motorsport

Geely Auto “2023 Core SupplierSymposium” recognizes Marelli’s
outstanding cooperation andprofessional capabilities, providing
Geely efficient and innovative solutions

2023 Enlighten Award

Best company in the “System
Engineering” category

MarelliBrazilLightweight Urethane for Interior
Products in the category of Futureof Lightweighting by Altair and theCenter for Automotive Research (CAR)

MarelliPrêmio Autodata 2023
Top Innovator 2023

HorizonView technology at CLEPA
Innovation Awards 2023

Marelli“Commendable” honor, DigitalEngineering Awards 2023

Fully Active Electromechanic
Suspension System

MarelliADVANCED MOBILI T Y
AND INNOVAT ION

23Marelli Sustainability Report 2023

DESIGN FOR SUSTAINABILITYADVANCED MOBILITY
AND INNOVATION
Battlefields

17

Innovation Strategy

18

Design for Sustainability

23

Product Safety and Quality:– A Proactive and Preventative
Strategy

24–E levating Standards andEnhancing Performance

25

EXAMPLES OF DESIGN FOR SUSTAINABILITY IN ACTION:
CASE STUDYCASE STUDY

Oil cooler design
cuts CO2emissions
by 17%

LeanLight is fit for
purpose, sustainable,
and launch-ready

The Marelli Inventors Awards
2023 recognized the Marelli teamfor their innovative oil cooler
design, which garnered the “Best
Sustainability Patent of the Year”.
This patented oil cooler isa testament to the team’s
collaborative effort, effectively
utilizing “V-dimples” (turbulenceinducing features) to enhanceheat exchange performance
without increasing resistance.
The application of thistechnology significantly
contributes to environmental
sustainability by cutting CO2
emissions by 17%.

For the latest news, visit our
website: marelli.com

At CES 2024 Marelli launched its
Lean platform, targeting entrylevel vehicles, brands, and trim
levels, with technology designed
to appeal to budget-oriented
consumers and fleet buyers.
Our LeanLight headlamp andrear lamp concepts feature up
to 20% fewer components, a
20% reduction in weight, and a
6kg reduction in CO2 emissions
compared to traditional

lamps. The introduction of a
new injection molding processcontributes to the lighter weightand reduced energy consumption,
while a newly developed surface
treatment solution eliminates
the need for a chemical coating,further contributing to thesustainability benefits.

ADVANCED MOBILI T Y
AND INNOVAT ION

24Marelli Sustainability Report 2023

PRODUCT SAFETY AND QUALITY: A PROACTIVE AND PREVENTATIVE STRATEGYADVANCED MOBILITY
AND INNOVATION
Battlefields

17

Innovation Strategy

18

Design for Sustainability

23

Product Safety and Quality:– A Proactive and Preventative
Strategy

24–E levating Standards andEnhancing Performance25

Our comprehensive approach to product safety andquality encompasses a broad spectrum of proactive
measures, ensuring that our products meet and exceed
the stringent standards set forth by regulatory bodies andour own internal benchmarks. In terms of end user safety,
our products such as automotive lighting are always
improving to provide drivers, especially at night,
with the safest journey possible.

DATA POINTS

zero zero zerorecalls

product safety
and quality issues

SUSTAINABLE AND SAFEINNOVATIONS

In our pursuit of product safety,
Marelli has charted progressive
paths, including the utilizationof alternative, less hazardous
substances in our operations,
reducing generation, and ensuring
full traceability in the International
Material Data System (IMDS). Our
vigilant oversight of product recalls
and comprehensive assessmentsof the health and safety impacts ofour products are indicative of ourdedication to transparency andaccountability.

ENSURING VEHICLE SAFETY

For the latest news, visit our
website: marelli.com

The increasing integration ofsophisticated electronics andadvanced technologies into modern
vehicles has underscored theimportance of product safety in our
industry. Recognizing the potential
risks associated with product recalls,
Marelli has taken decisive steps
to mitigate these risks throughvigilant management practices.
Our objective is clear: to make our
products safe, secure and reliable.

With the introduction of the Design
for Sustainability procedure in 2023,
Marelli has embedded mandatory
product safety requirements for
new or enhanced products. Oneof our Design for Sustainability
2025 targets is to ensure that our
products are “Safe by Design”
and free of critical substances
harmful to our personnel andthe environment. To achievethis, we aim to implement arisk management procedure on
critical materials that present asignificant risk to its operations.
Safety also includes the health impactof our products. Accordingly, ourproject teams are required to
conduct studies aiming to eliminate
or substitute carcinogenic andmutagenic substances in ourincidents of noncompliance withregulations

products, helping us stay ahead oflegislation, especially in the EU.
This includes ensuring productcompliance regarding materials such
as Asbestos Containing Materials,
Conflict Minerals, substances
restricted under RoHS identified on
the Global Automotive Declarable
Substance List (GADSL), substances
outlined in Proposition 65 of the
California EPA, EU REACH Restricted
Substances, or substances on the
Candidate List of Substances of VeryHigh Concern (SVHC). Our project
teams meticulously complete a
dedicated compliance checklist,
which serves as a comprehensive
record of the measures taken to
ensure full adherence to both local
and international legal mandates
pertaining to these key substances.
In line with product integrity andadherence to regulatory standards,
we consistently work within theframeworks and guidelines set byregulatory agencies as a standard
part of our operations.
When we receive notifications of
product recalls from these bodies,
we take the necessary steps toaddress them. In 2023, we didn’t
receive any recall notices. Keeping
our commitment to product integrity
and compliance, we continue ourengagement with regulatory bodies
as part of routine industry oversight.

In 2023, we responded to four
quality concerns through internal
assessments and external regulatory
reviews. Although not directly linked
to consumer safety, we addressed
and rectified identified issues incertain products. Some aspects ofour compliance and product quality
initiatives are currently maintained
confidential, as these matters
are subject to ongoing review
processes. At the time this report ispublished, we find ourselves in active
negotiations with our partners, with afocus on reaching equitable solutions.
During 2023, we responded to four
quality concerns brought to ourattention by our OEM customers.
For each concern, we conducteda thorough root cause analysis
and worked closely with those
involved to determine and executethe appropriate corrective actions.
Among these, we were identified as
responsible for one matter related tomarking our products that generated
inconsistency with homologation
documents and we actively engaged
in resolving the issue.
While these concerns were notdirectly associated with consumer
safety, they were nonetheless taken
seriously, and corrective action waspromptly implemented across theaffected products. We recognize
the importance of maintaining theconfidentiality of our compliance
processes and product quality
initiatives. This is especially relevant
when matters are under ongoingevaluation, where discussions are stillin progress. At the time of publishing
this report, we are engaged in active
dialogue with our customers in orderto achieve fair outcomes related tothe three quality concerns remaining.
These conversations do not include
service campaign disclosures.

ADVANCED MOBILI T Y
AND INNOVAT ION

25Marelli Sustainability Report 2023

PRODUCT SAFETY AND QUALITY: ELEVATING STANDARDS AND ENHANCING PERFORMANCEADVANCED MOBILITY
AND INNOVATION
Battlefields

17

Innovation Strategy

18

Design for Sustainability

23

Product Safety and Quality:– A Proactive and Preventative
Strategy

24–E levating Standards andEnhancing Performance

25

COST OF QUALIT Y AND HIGHEST EFFICIENCY

GlobalStandardization

Continually Improving

GLOBAL STANDARDIZED MANUFACTURING SYSTEM
Process definition
through standards

Application in all
global plants

Engineering Chain

Continuous
improvement

Standard SettingStandard Application

Operation Chain

Continuous Improvement

Business Unit Design Standards

Global Manufacturing Standards

Loss and Waste Definition

Business Unit Process DesignStandards

Supply Chain Management Book
including Diagnosis

Business Unit Operation DesignStandards

Maintenance Management Book

Standardized Kaizen (continuous
improvement) Methodology

including Diagnosis

Standard Tools and Training

Manufacturing KPI Definition

Gemba Kanri (shop floor

Integrated Governance with Process
Launch Management

management) Book including
Diagnosis

Feedback Loop

Standard Improvementand Loss Reduction

Stratification and Prioritization

Planning and Control Standardization

People Development

For the latest news, visit our
website: marelli.com

Marelli’s “Cost of Quality” contest
honors our continuous improvement
culture, showcasing the creative
solutions Marelli teams across theglobe have implemented to address
challenges within their domains. Thisinitiative is a testament to Marelli’s
ingrained problem-solving culture
and our resolve to maintain quality asa core tenet of our daily operations.

In 2023, the Global Champion of thecompetition was awarded to the
Marelli Foshan Plant. The winning
project focused on reducing defects
and scrap rates in the productionof some specific headlamp outerlenses. This achievement also
underscores the importance ofcontinuous improvement and crossfunctional teamwork in achieving
operational excellence.

Best Practices

TESTED, TR ACEABLE AND
TR ANSPARENT

Our product quality procedure
incorporates customer needs,
adhering to standards andregulations related to product designand validation. Our final products
have gone through a vigorous
process of quality assurance
through the Bill of Materials (BoM),
with multiple tests, culminating ina data matrix code for traceability
and testing history. The codesignifies compliance with ourprocedures and is visible to both ourcustomers and their end users.

ENSURING QUALITY
EXCELLENCE

In 2023, Marelli made significant
strides in enhancing problem-solving
capabilities among employees, whichis crucial for driving down the cost ofpoor quality and re-work. Our global
training program spans four levels,from basic to advanced problem
solving, ensuring a comprehensive
understanding and applicationof crucial methodologies. Local
language instruction and thementorship of Subject Matter
Experts ensure that our workforce
is well-equipped to meet andexceed customer expectations while
fostering a resolution culture.

DATA POINTS

97

Plants in scope for this program
benefitted from the initiative in 2023
The focus on plants with suboptimal customer scores during pilot
implementation underscores our commitment to quality andcustomer satisfaction.

886

166

3,340

100

Employees completed Level 1
training in 2023

Total training hours
were logged

Local experts involved

Coaching sessions further
solidified the learnings

Looking forward, Marelli is set to launch Problem Solving Training– Level 2 in 2024, expanding our scope of quality-focused education
to all Marelli plants.

ENV IRONMENTAL
MANAGEMENTENVIRONMENTAL
MANAGEMENTClimate Change Action

27

Energy Management

30

Waste Management

33

Water Conservation

35

Toxic Emissions

38

Biodiversity

39

26

Marelli Sustainability Report 2023

03 ENVIRONMENTAL
MANAGEMENT

Environmental management at Marelli
encompasses many of our material
topics. We are fully committed to
improving our sustainability impact
across these topics and have set
targets to enable us to reduce ourenvironmental footprint.

Driving sustainability in business, wecommit to boosting energy efficiency,
embracing renewables at no extra
cost, slashing waste, and responsibly
stewarding water in stressed areas.
Arturo Alvarez, Global Executive Operations
For the latest news, visit our
website: marelli.com

Climate Change Action

27

Climate change and transition to net zero

27

Progress in 2023

27

Climate change risk assessment

29

Commitments for the future

29

Energy Management

30

Progress in 2023

30

Renewable energy roadmap30

 ase study – Photovoltaic insulation,C
Simpang Ampat, Malaysia

31

Case study – China, independent
energy solutions

31

Energy efficiency

32

Commitments for the future

32

Waste Management

33

A long-term challenge

34

Progress in 2023

34

Focus on packaging

34

Commitments for the future

34

Water Conservation

35

Our Water Policy

35

Progress in 2023

35

Commitments for the future

36

Toxic Emissions

38

Hazardous substances management

38

Environmental risk assessment

38

Biodiversity

39

ENV IRONMENTAL
MANAGEMENT

CLIMATE CHANGE ACTIONENVIRONMENTAL
MANAGEMENTClimate Change Action

27

Energy Management

30

Waste Management

33

Water Conservation

35

Toxic Emissions

38

Biodiversity

39

CLIMATE CHANGE AND TRANSITION TO NET ZEROPROGRESS IN 2023

Climate change and energy management is one ofMarelli’s most material issues. According to McKinsey,
tailpipe emissions from cars, trucks, and other roadvehicles account for around 75% of all carbon emissions
from mobility – approximately six gigatons of CO₂ per year.

In 2023, Marelli has achieved a
B score from CDP for our Climate
Change Report. This score reflectsthat there are still opportunities
to improve our actions on climate.
We have made enormous progressin 2023, working at speed to makesignificant changes across ouroperations and developing theskills required to meet our targets.

We recognize the role that ourbusiness has to play in reducing
these emissions by developing
innovative and sustainable solutions
that can tackle climate change
and help accelerate the mobility
transition to electrification.

OUR APPROACH

We understand that our products
must help our customers achieve
their net zero goals. To make thisa reality, we have set ambitious
targets for our own emissions.
Marelli is committed to achieving
net zero carbon emissions by 2045
and we have set out a roadmap,
with milestones in 2025 and 2030,
showing how we will achieve
this ambitious target.

For the latest news, visit our
website: marelli.com

27

Marelli Sustainability Report 2023

To achieve our commitment tothis long-term target we know wehave a lot to do, especially aroundsupplier engagement and this is afocus for Marelli in the coming years.
Our short-term targets from 2023
to 2025 are aligned to a 1.5-degree
scenario. The next milestone
is the carbon neutrality of ouroperations by 2030, which will
be submitted to the Science
Based Targets initiative (SBTi) for
approval, along with our net zerotargets for 2045. We committed to
SBTi in October 2023, and we areworking towards verification* of ourcarbon inventories to submit ourtargets for approval by SBTi within
the 24-month deadline.

Scope 1 GHG emissions (tCO2e/year)

reduction in Scope 1
and Scope 2 in 2023
vs 2021 baseline

8%

reduction in Scope 1
and Scope 2 in 2023
vs 2022 baseline

In Scope 1 and 2, we reduced ouremissions by 12% compared tothe initial 2021 baseline. However,when submitting our commitment
to the Science Based Targets
initiative, we decided to follow therecommendation to use a 2022
baseline for our GHG emissions.
This was to avoid the outlier effects
of COVID-19. Against the new 2022
baseline, our emissions decreased
by 8%**, which can be recovered by2025 thanks to the acceleration of
our renewable energy roadmap andestablishing stretch targets to reduceenergy intensity in our plants.
For more details on progressagainst our renewableenergy roadmap and energy
efficiency measures, seeenergy management
see pages 30–32

Scope 2 GHG emissions (market-based)(tCO2e/year)

2023

59,961

2023

2022

59,5272022

increase vs 2022: 0.7%

12%

reduction vs 2022: -9.3%

334,812369,343

Scope 1 and Scope 2 (market-based)
GHG emissions intensity ratio(tCO2e/revenue (m euros))

Scope 1 and Scope 2 GHG
emissions (tCO2e/year)
2023
2022
reduction vs 2022: -8.0%*	Our Scope 1 and 2 emissions presented in this report are verified by a third party. Marelli Scope 3 is under verification at the time
this report is published. The calculation of category 1 is done by subject matter expert through peer-review analysis in the industry.

394,773
428,871

2023
2022
reduction vs 2022: -15.5%**	Considering the boundary
covered on this report.

37.34
44.21

ENV IRONMENTAL
MANAGEMENT

28

Marelli Sustainability Report 2023

CLIMATE CHANGE ACTION CONTINUEDENVIRONMENTAL
MANAGEMENTClimate Change Action

27

Energy Management

30

Waste Management

33

Water Conservation

35

Toxic Emissions

38

Biodiversity

39

PROGRESS IN 2023 CONTINUED
In 2023, Marelli faced a challenge
in measuring Scope 3 emissions, as
our spend-based methodology did
not accurately reflect our work to
reduce high-emission materials. In
addition, Marelli worked with around
600 suppliers to collect primary data,
which accounted for only 7% of our
total Controlled Purchased Valueand much of the data provided wasincomplete and not verified bythird parties.

This led Marelli to move from aspend-based to a hybrid volumebased methodology, which moreaccurately reflected our efforts
to reduce upstream emissions.
In addition, following theScience Based Targets initiative
recommendation to avoid baselines
impacted by COVID-19, Marelli reset
the baseline for measuring ouremissions to 2022 from 2021.
The company also refined
calculations of relevant Scope
3 emissions, and extended thescope to include additional data in
categories including logistics andemployee commuting. We adopted
a new methodology defined by
Kearney for calculating Scope
3 Category 1 (direct materials)
emissions – the most significant in
our inventories. The process, which
is now automated and updated
monthly, combines volumes

procured, supplier publicly available
data on the Carbon Disclosure
Project (CDP), and spending forthe remaining data. The results areunder third party verification at
the time of this report’s release but
preliminary results show a reductionof 2.3% in 2023 compared to the2022 baseline. We also observed
a decrease in Scope 3 Category
4 emissions (transportation)of approximately 15% in 2023
compared to the 2022 baseline.
Marelli is working to confirm all
figures to be reported to the CDP
later in 2024 and to submit theircarbon inventories, verified by third
parties (all scopes), to the Science
Based Targets initiative also in 2024.
In 2024 the company will also start
work on measuring downstream
Scope 3 emissions.
We continue to embed a culture that
reduces the environmental impact ofour products across their entire life
cycle using Design for Sustainability
criteria. For more information,
see page 18.

DATA POINTSFor the latest news, visit our
website: marelli.com

25%

Scope 3 emission reduction
target by 2025**

2022 baseline.

Within the Design for Sustainability
guidelines for innovation projects
and products in development, ourbusinesses have started to include
the requirement to estimate andreduce the product’s carbon footprint
throughout the design phases at
a procedure level, according to
ISO 14040/44 standards. Although
we have not yet embedded themeasurement of these reductions ineach gate review during the project
development, Marelli is working todo this in the future.
We will continue to learn from ours
and our suppliers’ data, striving
for steady progress, moving at
speed, and aiming for the ambitious
target of a 25% reduction in Scope
3 by 2025 compared to the new
2022 baseline.

ENV IRONMENTAL
MANAGEMENT

CLIMATE CHANGE ACTION CONTINUEDENVIRONMENTAL
MANAGEMENTClimate Change Action

27

Energy Management

30

Waste Management

33

Water Conservation

35

Toxic Emissions

38

Biodiversity

39

For the latest news, visit our
website: marelli.com

29

Marelli Sustainability Report 2023

CLIMATE CHANGE RISK ASSESSMENT

The year 2023 saw Marelli’s first climate change risk
assessment (CRA), based on the recommendations of
the Task Force on Climate-Related Financial Disclosures(TCFD) and covering both physical and transitional risks.
In the past, we confined ourselves tophysical risk assessments, looking at
the threats relating to our buildings
and mechanical infrastructure. To
understand the process, we worked
with our insurance department on
assessing and covering climate riskon the physical aspects of our sites.
This assessment covered 20 of ourmost impactful manufacturing
sites, and we are working to include
our remaining sites in a climate
physical risk assessment in 2024.
Transitional risks assessed included
increasing operational costs relating
to greener electricity and raw
materials and increased customer
demand for lower carbon productsthat are in many cases more
expensive to produce. Opportunities
include potential revenue growththanks to electrification and theproper balance of the businesses
serving internal combustion engines(ICEs). The purpose of the CRA
is to quantify these risks andopportunities and give us insights
to action, so business units canunderstand and put strategies inplace to manage the relevant risks
and opportunities. We are aware
that, for example, greener steel willremain more expensive in the coming
years. The business units intense insteel are combining design strategies
to reduce materials with supplierengagement to accelerate theirdecarbonization plans with limited
cost increase to our customers.

Following the results of the CRA,
we have put an action plan in place
to manage and mitigate our risks.
This, along with the eco-innovation
workshops we conducted, have also
allowed us to better understandhow to manage the additional costs
associated with greener products,
and to find ways to mitigate theserisks. More broadly, climate risks
are now also embedded in ourEnterprise Risk Management(ERM) program and are reviewed
in the regular course of business.
For more information, see
Sustainability Governancesee pages 41–42

COMMITMENTS FOR
THE FUTURE

In 2023, we received a “B” on the
CDP Climate Change assessment.
According to the feedback, we
performed well in the areas of Risk
and Governance; however, it is clearthat we must better engage our value
chain. We also have opportunities
for improvement in enhancing theaccuracy of our emissions-related
data. We are addressing theseissues during the preparation of thisreport and aim to have our Scope 3
emissions verified by a third party.

CASE STUDY

Optimizing transportation to reduce emissions

Lastly, the feedback from the CDP
report indicated the need to align ourtargets with science-based standards,
an effort that is currently underway.
We plan to submit our targets to
the Science Based Targets initiativeby the first half of 2024.
Our continued focus in 2024 is on
increasing the quality and scope ofthe data that we collect—internallyand from our suppliers—to improve
our decision-making in the future.
Internally, we will add energy dataof our offices and start to survey
our non-controlled joint ventures.
We continue to engage with our
suppliers to collect data via CDP
and to agree on decarbonizationplans and targets.

To decrease transportation carbon
emissions between Slovakia andStrasbourg, our packaging design,
warehouse operations, and freight
coordination teams successfully
re-engineered the product pallet
configuration. This strategic
redesign enabled us to lower
the pallet height, optimize

the truckload capacity, andincrease the quantity of producttransported per journey. Throughthis cross-functional project, wehave reduced the number oftrucks making the journey in ayear from 60 to 40, which resulted
in a savings of 46,184 kg of CO2
over the year.

CAPEX INVESTMENT FOCUS

effectively and are working on
this challenge, although we havesecured 3% of our investments forsustainability actions, including
decarbonization, waste reduction,and health & safety. An exampleof the difficulty of tracking ourinvestments is identifying indirect
benefits for energy efficiency, suchas when paying a premium for
more efficient equipment. A further
challenge is that our climatetransition roadmap requires longterm investment to reach our net
zero target, but we are currently
working on a three-year cycle forour sustainability targets.

One gap identified in 2023 was
identifying and tracking the CAPEX
investment required to transition
to net zero. For instance, the Task
Force on Climate-Related Financial
Disclosures (TCFD), aims to ensurecompanies are moving expenditure
to cleaner and greener activities.
These include ensuring investmentsalign with climate targets, anddisclosing, monitoring and verifying
these annually. Marelli’s CAPEX
plans should therefore beconsistent with broader net zerostrategies and avoid investments
inconsistent with the company’s
science-based short-, mediumand long-term net zero targets.
We recognize the need to improve
our internal systems to measure
and report this investment more

We are working to find solutions
to these challenges. We are a
nimble business that can respondquickly, and we are clear about ourultimate destination.

ENV IRONMENTAL
MANAGEMENT

ENERGY MANAGEMENTENVIRONMENTAL
MANAGEMENTClimate Change Action

27

Energy Management

30

Waste Management

33

Water Conservation

35

Toxic Emissions

38

Biodiversity

39

As an energy-intensive manufacturer, we recognize theimportance of reducing our energy consumption andimproving the energy efficiency of our operations.
PROGRESS IN 2023
To achieve carbon neutrality in ouroperations by 2030 requires fast andsteady progress on Scopes 1 and 2
emission reductions. This progressis anchored in executing on ourrenewable energy roadmap,
pursuing high energy efficiency
at our plants, all aligned withplans to decrease our Scope 1
emissions by replacing fuels usedin manufacturing processes.

OUR APPROACH

Since 2022, we have committed toincreasing investments in energy
efficiency projects and increasing
the share of renewable energy
consumption to support us inachieving our energy intensity
and renewable electricity targets.
We track and measure our progresson these targets monthly at a plantlevel and report to our C-suite andboard of Directors on a quarterly
basis in a highly disciplined way.

For the latest news, visit our
website: marelli.com

30

Marelli Sustainability Report 2023

51%

energy consumption
occurred at plants coveredby ISO 50001 in 2023

39%

renewable electricity
in our operations in 2023

RENEWABLE ENERGYROADMAPOur renewable energy roadmap
commits us to increasing ourshare of renewable electricity
consumption to over 80% by 2025
and 100% by 2030, to achievesignificant CO2 reductions. To
attain this goal, we combine different
strategies, such as renewable energy
certificates (RECs, GOs, etc.), thatconsider the decarbonization paceof the countries where we operate,
and use power purchase agreements
wherever available and affordable.

Total electricity (GJ/year)
2023

3,867,824

2022

3,801,750

Total energy consumption (GJ/year)

Energy intensity (MJ/WH)

2023

5,025,600

2023

61.08

2022

4,975,028

2022

62.83

increase vs 2022: 1.7%

increase vs 2022: 1%

reduction vs 2022: -2.8%

Renewable electricity (GJ/year)

Direct energy consumption (GJ/year)

Renewable electricity %2023

1,141,172

2023

2022

1,137,563

2022

2023
2022

1,516,293
1,031,842

39%
27%

increase vs 2022: 47%

increase vs 2022: 0.3%

increase vs 2022: 12%

Non-renewable electricity (GJ/year)

Indirect energy consumption (GJ/year)

Renewable energy (GJ/year)

2023

2023

3,884,428

2023

2022

3,837,464

2022

2022

2,351,531
2,769,908

reduction vs 2022: -15%

increase vs 2022: 1%

increase vs 2022: 47%

MARELLI RENEWABLE ELECTRICITY ROADMAP
Marelli

Non-renewable energy (GJ/year)

2021

2022

2023

2024

2025

14%

27%

39%

55%

80%

Our purchases include a plantby-plant breakdown of renewableelectricity implementation. Eachbusiness unit has a separate target,and business units and plants cansource renewable electricity that iseither certified or self-produced.
We are supplementing our energy
procurement by embarking on
projects that contribute to our selfgeneration in renewable electricity
production.

1,519,673
1,035,526

Just to mention some of our notableefforts include the installation ofsolar panel systems in Malaysia,
China, and Italy and implementinga Power Purchasing Agreement(PPA) with third-party suppliers,
which enables us to use 100%of the electricity generated byphotovoltaic installations.

2023
2022
reduction vs 2022: -11%

3,505,927
3,939,501

ENV IRONMENTAL
MANAGEMENT

31

Marelli Sustainability Report 2023

ENERGY MANAGEMENT CONTINUEDENVIRONMENTAL
MANAGEMENTClimate Change Action

27

Energy Management

30

Waste Management

33

Water Conservation

35

Toxic Emissions

38

Biodiversity

39

The progress of these projects
hinges on the synergy of our crossfunctional teams, which include
experts from energy, finance,purchasing, real estate, and risk
management. These teams havebeen instrumental in bringing ourrenewable energy to life at various
plants, contributing to a greener
energy mix within the company.

We update the renewable energy
roadmap twice a year to ensureongoing alignment with ourcustomers’ expectations and ourdecarbonization targets. This
dynamic allows us to stay on trackwith our performance targets andstrategically plan for and budget
future projects.

CASE STUDY

China, independent energy solutions

5,970MWh/year
Annual electricity production

5,953tCO /year
2

CASE STUDY

Annual reduction of CO2 emission

10,886

6 MW rooftop photovoltaic power
station in Wuxi, China

Individual panels

3,650MWh/year
Annual electricity production

3,657tCO /year

Photovoltaic Insulation,
Simpang Ampat, Malaysia
In August 2023, we opened a new
photovoltaic installation at our
manufacturing plant in Simpang
Ampat, Penang, Malaysia.
For the latest news, visit our
website: marelli.com

The installation consists of
3.1 megawatt peak solar
photovoltaic panels and buildingintegrated panels on the plant’s
roof and car park. The system
will generate 4.4 GWh of clean
energy a year, saving well over
2,000 tons of CO2 each year.

The project, accomplished incollaboration with Penang
Development Corporation andclean energy expert Solarvest
Holdings Berhad, is one of several
measures that will contributeto our renewable electricity
roadmap, in line with oursustainability commitments.

2

Annual reduction of CO2 emission

Solar panels on the roof of Automotive
Lighting & Sensing in Wuhu, China

32%

10.5%

20years

0kJPY

Electricity price discountvs market priceLong-term PPA contract

Covering ofelectricity demand

CAPEX demand

ENV IRONMENTAL
MANAGEMENT

ENERGY MANAGEMENT CONTINUEDENVIRONMENTAL
MANAGEMENTClimate Change Action

27

Energy Management

30

Waste Management

33

Water Conservation

35

Toxic Emissions

38

Biodiversity

39

ENERGY EFFICIENCY

We have made significant strides
in reaching our 2025 goal of
curtailing energy intensity by 6%from the 2021 baseline (measured
in megajoules per working hour),having realized a 3% reduction
in 2023 versus 2022. Our progresshas been underpinned by theconsistent application of our Marelli
Manufacturing System (MMS)
diagnosis, an internal analysis tool
which is part of our overall Lean
production system that provides
a checklist of best practices forenergy efficiency.
Every year, we ask all our plants
to conduct an energy diagnosis via
MMS which systematically evaluates
our plants’ levels of maturity andawareness on energy topics. This isreviewed at group level and allows
each plant to understand its internalenergy management and to identify
and bridge its gaps through aroadmap shared with the business
unit Energy Manager.
Beyond these initial steps, at theend of 2023 we started to explore
opportunities to substitute LPG
with more sustainable alternatives
wherever feasible. In 2024, we
will escalate our commitment
to energy efficiency, aligning ourefforts with the aim of achieving
our 2025 energy intensity
reduction target in advance.

For the latest news, visit our
website: marelli.com

32

Marelli Sustainability Report 2023

To bolster this objective, we haveintegrated the energy intensity
target1 into our corporate
performance metrics. This crucial
sustainability goal now stands
alongside key financial indicators
as a determinant of the shortterm incentive bonus, applying toboth group level and our diverse
business units.

ENERGY HIGHLIGHTS
In 2023, each business unit was tasked with developing a pilot project to identify an opportunity in their operations toreplace conventional fuel sources with an alternative renewable source. These pilots will run until 2025, when we will
have sufficient data to decide where to focus our efforts. Our Scope 1 emissions account for 15% of total Scopes 1 & 2.

3.0

tCO2 /year

At Kechnec Propulsion Solutions plant in
Slovakia, starting in June 2023, using waste
heat for water heating has enabled a carbon
emissions reduction of 3.0 tCO2 /annum.

239.8

tCO2/year

At Electronic Systems Japan, starting in July
2023, lighting replacements in Fukushima
have enabled carbon emissions reductionsof 239.8 tCO2 /year.

279tCO /year 458.4MWh/year
2

At our Automotive Lighting & Sensing
plant in Sosnowiec, Poland, by reducing
the temperature set-point for offices andshop floors starting in January 2023, thishas enabled carbon emissions reductionsof 279 tCO2 /year, and natural gas savings of
18.035 kJPY/year. Furthermore, the cost of
implementation was zero kJPY.

COMMITMENTS FOR THE FUTURE

Our commitment is to enhance energy
efficiency through the modernization oftechnology and equipment, as well as byinvesting in and creating renewable energy
sources. We are on a path to substitutetraditional fuels with eco-friendly alternatives
and exploit waste heat recovery systems
together with combined heat and power
units. Concurrently, employee training on
executing effective energy-saving measuresand climate initiatives at our plants willremain a priority. Moreover, the scope of
our energy data collection will expand toencompass our offices.
1	The boundary for our targets include active sites in
the current year, for example, 2024 targets consider
all productive active sites, whereas the data disclosed
in this report consider all sites active in 2023.

Starting in July 2023, lighting replacements
in our Electronic Systems Fukushima plant
have enabled a reduction in annual electricity
consumption by 458.4 MWh/year. This has
enabled a simple pay-back time (SPBT) on
the investment of 1.67 years.

ENV IRONMENTAL
MANAGEMENTWASTE MANAGEMENTENVIRONMENTAL
MANAGEMENTClimate Change Action

27

Energy Management

30

Waste Management

33

Water Conservation

35

Toxic Emissions

38

Biodiversity

39

For the latest news, visit our
website: marelli.com

33

Marelli Sustainability Report 2023

At Marelli, we recognize waste as a critical issue due to potential negative impacts on people’s health,the environment through the depletion of raw materials, and economic costs from waste management.
To combat this, Marelli adheres to strict waste management procedures, vows to comply withenvironmental laws, and aims to reduce waste generation by encouraging reuse and recycling.
Our Environment, Health and Safety (EHS) Policy underscores this commitment.
Waste management performanceis tracked using key performanceindicators (KPIs) which cover
the amount generated, recovery
rates, and landfill usage, mappingof waste streams, qualitative
information including the type ofwaste (packaging/non-packaging)and methods of disposal. Datais comprehensively collected andmonitored across all sites via digitalplatform, custom made for Marelli
EHS and energy data collection.

Our waste targets ensure thatwaste management procedures areproperly followed in accordancewith environmental protection
and legal compliance. All projects
required to reduce waste areregistered and validated through theEnvironmental Projects Monitoring(EPM) tool. Plant managers play a
crucial role in achieving these targets
by implementing various waste
reduction projects within
their respective facilities.

We record detailed information
on waste generation, including
distinctions between hazardous andnon-hazardous materials and theirrespective handling processes. Thesefigures are then scrutinized using
the tool to identify trends, to assess
adherence to established targets,and to track progress. If there’s a gap
between our actual performanceand our KPIs, we conduct thoroughassessments and either provide
explanations or implement
adjustments to get back on track.

OUR APPROACH

8.14

waste intensity 2023
tons/revenue
million euros

In our operations, waste is primarily
generated in production areas,
warehouses, offices, canteens,
General Services and Infirmary.
About 92.3% of this waste is nonhazardous, while 7.7% is hazardous.
Packaging makes up 30.3% of thewaste. In 2023, we performed a
deep analysis to define a concrete
action plan to reduce packaging
waste intercompany, in partnershipwith our suppliers, starting withthose located in China.

We also undertook efforts on
scrap and material overheads
reduction. We are seeing definitechanges in our culture, and this is
beginning to turn the tide towards
improved processes for identifying
and reducing waste.
We aim to minimize waste sent
to landfills, currently at 2.7%, byprioritizing recycling and wasteto-energy processes. With avision of “Zero Waste to Landfill,”
we have set specific reduction
targets, especially for high wasteproducing sites. Notably, in 2023,
our Slovakian site, Kechnec, reduced
landfill waste from 1.25% to 0%,
redirecting waste to energy recovery.

Total amount of waste generated (Mt)

Total amount of waste diverted fromand directed to disposal (Mt)

2022

2022
78,916

6,596

79,4902023

Total amount of non-hazardous waste
generated

Total waste (Mt)2023

86,0862022

85,457increase vs 2022: 0.7%

Wastewater reduction
through oil filter
installation

72,183

13,27472,454

13,6322023

Total amount of hazardous waste generated

CASE STUDY

At our Amata plant in Thailand
we have minimized wastewater by
installing oil filtration equipment.
This initiative has led to a remarkabledecrease in wastewater disposal byapproximately 5.6 tons annually.

6,541

Total amount of waste diverted from disposal
by recycling
Total amount of waste directed to disposal

ENV IRONMENTAL
MANAGEMENTWASTE MANAGEMENT CONTINUEDENVIRONMENTAL
MANAGEMENTClimate Change Action

27

Energy Management

30

Waste Management

33

Water Conservation

35

Toxic Emissions

38

Biodiversity

39

WASTE MANAGEMENT HIER ARCHY

CASE STUDY
MORE PREFERREDSOURCE REDUCTION AND REUSE

RECYCLING / COMPOSTING

ENERGY RECOVERYTREATMENTANDDISPOSALLEAST PREFERREDWASTE MANAGEMENTHIER ARCHY

To support a circular economy,
at Marelli we have reused large
quantities of materials, such as
metals, plastics, wood, and paper,
avoiding the creation of 12,342.1
metric tons of waste in 2023.

For the latest news, visit our
website: marelli.com

34

Marelli Sustainability Report 2023

– 3,616 Metric Tons of Metal– 5,053 Metric Tons of Plastic– 2,057 Metric Tons of Wood
– 1,616 Metric Tons of Paper
and Cardboard
To ensure responsible waste
management, we mandate all waste
handlers abide by contractual andlegislative obligations, confirmed
through our standard Marelli
Purchase Agreement. This processincludes rigorous authorization
verifications with specialized softwareand compliance checks using bothinternal and independently conducted
ISO 14001 audits, guaranteeingthat all third parties manage waste
appropriately.
In 2022, we have set targets for waste
reduction related to production levels
for the first time. This decouplingof waste volumes from production
volumes represents a significant shift
in our industry approach.

A LONG-TERM CHALLENGE

Based on 2023, we are not on course
to meet our target of a 10% reduction
by 2025. Nevertheless our efforts
and due to our increased productionlevels, our waste generated increased
by 0.7% over the year. Aware of how
challenging this target is due to thenature of our manufacturing process,we see progress as we begin to movein the right direction.

Best practice on
packaging reduction
At our Tolmezzo AL&S (Italy)site, we achieved a reductionof 70 metric tons of wooden
pallets, through the reuse ofwooden packaging. To reduce
waste generation, the site
signed a contract with a supplierspecialized in wooden pallets
management to buy pallets
from the plant and reuse them.
Also, to maximise reuse, the site
started to separate damaged
pallets from the intact ones.
This has been a great way toengage our employees on waste
reduction, helping them seetangible results on site.

Recognizing the importanceof continuous improvement,
we are proactively addressingthese challenges through theimplementation of a comprehensive
environmental training program.
This initiative emphasizes
communication and awarenessraising throughout our operations,aiming to equip our workforce withthe knowledge and tools necessary
to enhance our environmental
performance. In 2023, 20 plant
managers from 10 countries wereinvolved in this training.
Read more about our training
and development
see page 58

PROGRESS IN 2023
FOCUS ON PACK AGING

Starting in 2023 and continuing
into 2024 and beyond, weare focusing on optimizing
our packaging. Packaging is asignificant source of waste in manyof our business units and we areworking closely with suppliers to
improve packaging sustainability
by increasing the use of returnable
packaging. We are also reviewing theuse of the plastic protection material
we include in our packaging, looking
for ways to reduce or replace it.
As part of Design for Sustainability,
we have introduced a set of
guidelines for product proposals that
includes a step to make sure thatdesigners consider the sustainability
implications of the packaging
required for any new product indevelopment. In 2024, we plan
the rollout of global packaging
guidelines to be followed by ourplants, logistics and suppliers.

SAFER SUSPENSION, OIL FREE
Waste reduction is not limited
to our operations. In 2023,
we began developing a new
approach to vehicle suspension.

The new system is oil freeand delivers up to 80% energy
efficiency, as compared topassive or semi-active systems,
and is therefore able to harvest
energy, in line with a sustainableapproach. It also occupies lessvolume than other available
technologies, providing greater
freedom in vehicle interior design.

COMMITMENTS FOR THE FUTURE

Data gathering is a vital part ofmeasuring and reducing waste.
In 2023, we developed a processthat allows site management
to track and capture detailed
information about waste at theplant level, following the GRI
recommendations. In the year
under review, this process was in thedata-capturing phase. Next year,
we will have the information to
enable reporting on “extraordinary
waste.” We are currently reviewing
our definitions to include all waste
streams on our monitoring inalignment with GRI (Global Reporting
Initiative) to avoid internal definitions
and metrics. The extraordinary
waste is 9.8% of Marelli’s total waste.
As part of efforts to engage our
employees to tackle waste, we plan
to launch an internal campaign toban single-use plastics from oursites, fully led by our employees.

ENV IRONMENTAL
MANAGEMENTWATER CONSERVATIONENVIRONMENTAL
MANAGEMENTClimate Change Action

27

Energy Management

30

Waste Management

33

Water Conservation

35

Toxic Emissions

38

Biodiversity

39

Access to water and sanitation are human rights as well as
critical challenges for sustainability. As we use water for
production processes, careful use of water, both in terms ofthe volume our operations consume and the effect we have on
its quality, is a high priority for Marelli. This is particularly thecase for our operations in water-stressed regions.
We are also committed to helping
improve water quality at our locations,with mandatory parameters checked
annually. We will provide data on thisin the coming years.

OUR APPROACH
At Marelli, we focus on water
management practices
emphasizing conservation, efficientuse, and legal compliance in water
management across the company’s
manufacturing sites. The key
elements of our strategy include:● Reducing water withdrawal
intensity through targeted
initiatives, improving the efficiencyof water use, and minimizing water
usage in operational processes.
● Encouraging the recycling
and reuse of water withinmanufacturing processes tolessen the demand for fresh waterand reduce the environmental
impact of operations.
● Ensuring proper wastewater
management by treating water
before it is discharged or reused.
For the latest news, visit our
website: marelli.com

35

Marelli Sustainability Report 2023

In 2023, our Melfi plant, in Italy,
launched a project to reduce
the water usage in the painting
process (cataphoresis), byrecovering water used in the firstwashing cycle avoiding additional
water withdrawal.

Wastewater quality assessments arealso undertaken to ensure discharge
complies with environmental
standards. In July 2023, we launcheda digital EHS tool that tracks water
use and pollutants. At the close of2023, the tool was in use at all of our
production sites.

OUR WATER POLICY
To date, only 1.2% of water on earth
is available for human use, andthe pressure on this resource will
increase as competing demands
for clean fresh water (agriculture,
households, energy generation,industrial use, ecosystems) grows.
In addition, the effects of climatechange put more pressure on water
quality and availability.
Aware of the impacts of water
scarcity, water stress, and water
risks arising from climate change
on businesses and communities,
Marelli established a Water
Policy in 2022 that applies to all
Marelli operations worldwide.
The policy’s primary concern ismanaging water-related risks andopportunities identified throughtier risk assessment by focusing onwater consumption. As part of ourdesign process, when proposing
new or improved products, ourdesigners are required to identify
and include production processes
that avoid water withdrawal.

We also aim to cascade targets at the
project level, and within innovation
projects, to ensure our current andfuture production will be more water
efficient, in line with our Water Policy.

PROGRESS IN 2023
In 2022, we set targets to reduce
our water intensity by 14% by2025 and 20% by 2030. We arepleased to report that we hadalready exceeded these targets
by the end of 2023 thanks for
significant improvements in water
monitoring and management.
Therefore, in early 2024, Marelli
Sustainability Council decided to
upgrade our targets to reducewater intensity by 25% by 2025
and by 30% by 2030 comparing
to the 2021 baseline.
In line with requirements of both
the CDP and EcoVadis, in 2023
we have enhanced our internal
digital platform, custom–madefor Marelli EHS and energy datacollection, to help us report water
discharge in more detail.

Our EHS tool helps us in identifying
the volume of wastewater that has
been treated at each level fromprimary to tertiary.
In 2023, we had two environmental
occurrences at our facilities. Thisaccount encompasses instanceswhere regulatory thresholds
for wastewater discharge were
surpassed, resulting in monetary
penalties. All corrective actions wereconcluded by the end of 2023.
Although the associated fines
did not surpass our materiality
thresholds1, we continuously
investigate the root causes of theseincidents and always address them,regardless of the economic impact.

1	Marelli defines significant instances as
instances that generate an impact greaterthan JPY 443 million (EUR 3 million) from afree cash flow (FCF) perspective or JPY 590
million (EUR 4 million) in terms of EBIT.

ENV IRONMENTAL
MANAGEMENT

36

Marelli Sustainability Report 2023

WATER CONSERVATION CONTINUEDENVIRONMENTAL
MANAGEMENTClimate Change Action

27

Energy Management

30

Waste Management

33

Water Conservation

35

Toxic Emissions

38

Biodiversity

39

WATER MANAGEMENT
We conducted water risk
assessments at all our plants in
2023. Using the World Resources
Institute’s Aqueduct platform, wewere able to gather data to help us
understand our water usage andits impact on our business and theareas where we operate.

The Aqueduct platform helped us
identify those sites that are in waterstressed areas as well as those thatare predicted to become so in thenear future. We identified 331 sites
in these water-stressed areas with31.6% of our water withdrawal
concentrated in these locations.
These sites were required to preparea response plan that outlines specificactions and strategies to address
identified risks and vulnerabilities
related to water resources. At thebusiness level, business units wererequested to propose innovationsin products and processes to reduce
the water withdrawal in the sites
mapped in water-scarce areas.

For example, the Propulsion
Solutions site in Modugno, Italy
started a project to replace the oldpipeline to avoid leakages. Startingin 2022, the site collects rainwaterand uses it in the production process,avoiding usage from other sources.

IMPROVING DATA ACCUR ACY

Much of our focus in 2023 was on
improving our data accuracy aboutwater usage, through a range ofaudits, tracking systems and thirdparty assessments, all of which havehelped focus our remedial activities.
Water flow meters installed at plants
gave us more complete information
on when and where we were using
water in our operations in terms oflocation, manufacturing processes,
and timing. Still, we recognize thatfurther improvements are needed toaccess this data, which will give us thedetailed information that we need to
manage and control our water use.
Our goal is to have tools in place thatwill alert us to leaks of which we areunaware, and which we will be able
to quickly address.

Marelli’s 2023 CDP Water
Security evaluation, which
took all our manufacturing
plants into account, showeda strong performance acrossthe board, achieving an overall
score of B. We scored A on waterrisk assessment, water-related
opportunities as well as on ourwater policies and accounting.
However, we must improve on ourvalue chain engagement, targets,governance of water-related issues,and how they could impact ourbusiness.

Having achieved our existing targets, we have set new targets for
reductions in water intensity from baseline year 2021.

-25% -30%

For the latest news, visit our
website: marelli.com

Water intensity
target 2025
(Liters/worked hours)

1

33 of our sites are in extremely high water stress areas, as revealed by the analyses of the latest Aqueduct 4.0.

Water intensity
target 2030
(Liters/worked hours)

COMMITMENTS FOR
THE FUTURE

We will continue to refine andimprove our data accuracy inrelation to water usage. Basedon this improved data, we aim to
expand the range of measures
deployed to improve our water
usage performance.
Sites where this is indicated will be
required to set out a risk response
to enable the plant to continue tooperate sustainably in relation to
its water use. This will include theuse of closed loop systems which
recover, treat and reuse water fromour operations.

ENV IRONMENTAL
MANAGEMENT

37

Marelli Sustainability Report 2023

WATER CONSERVATION CONTINUEDENVIRONMENTAL
MANAGEMENTClimate Change Action

27

Energy Management

30

Waste Management

33

Water Conservation

35

Toxic Emissions

38

Biodiversity

39

DATA POINTS

33

25.6

plants in extremely highwater stress areas

water intensity 2023
Liters/Working hours-9%

water intensity
variation 2023 vs 2022

WATER DISCHARGE (ML)TOTAL WATER WITHDRAWAL (ML)

Surface water (total)
2023
2022

Third-party water (total)
78

2023
85

2022

1,447
1,206

2023
2022

Third-party water (total)
101

2023
107

2022

decrease vs 2022: -7.7%

increase vs 2022: 20.0%

decrease vs 2022: -5.7%

decrease vs 2022: -5.2%

Groundwater (total)

Total water discharge

Groundwater (total)

Total water withdrawal

2023
2022 0

1

2023
2022
increase vs 2022: 18.2%

For the latest news, visit our
website: marelli.com

Surface water (total)

1,526
1,290

2023
2022
decrease vs 2022: -8.0%

332
361

2023
2022
decrease vs 2022: -5.7%

1,676.11
1,768.72

2,109
2,237

ENV IRONMENTAL
MANAGEMENT

38

Marelli Sustainability Report 2023

TOXIC EMISSIONSENVIRONMENTAL
MANAGEMENTClimate Change Action

27

Energy Management

30

Waste Management

33

Water Conservation

35

Toxic Emissions

38

Biodiversity

39

We recognize our responsibility to develop andimplement strategies that mitigate our impact
on the environment, especially concerning air
pollution and toxic emissions.

DATA POINT

94%

of Marelli manufacturing sites
certified according to
ISO 14001 standard

As outlined in our Environmental
Health & Safety Policy, we strive to
reduce emissions of any pollutants
and avoid the release of toxic
substances, ensuring compliancewith environmental regulations.

At present, 11 out of 17 sites inAutomotive Lighting businessequipped with painting facilities areoperating systems that are highly
efficient at reducing VOCs (volatileorganic compounds). The systemcalled RTOs (regenerative thermaloxidizers) can not only guarantee
a reduction of VOC emissions up to
99% but also a thermal recovery up
to 97% that results in reduced fuelconsumption. Three sites (out of 17)
are equipped with thermal oxidizers(TOs) up to 99% VOC reduction withthermal recovery up to 70%.

HAZARDOUS SUBSTANCESMANAGEMENT

For the latest news, visit our
website: marelli.com

By incorporating advanced
filters and scrubbers into ourmanufacturing processes, we
effectively trap and neutralize
harmful pollutants before theycan enter the atmosphere.
These systems are meticulously
maintained and upgraded toleverage the latest advancementsin emission-reducing technology.

Marelli’s commitment toenvironmental sustainability extends
to the rigorous management of
hazardous substances used in ouroperations. To control the useof hazardous substances, wehave established a meticulous
inventory tracking system. This
enables us to monitor the volume
and types of hazardous materials
that come through our facilities
and ensure proper storage andhandling in compliance withsafety regulations. We continuously
seek to reduce our reliance on
hazardous substances by exploringsafer and more eco-friendly
alternatives. Whenever possible,
we replace hazardous chemicals
with less harmful options.

Marelli’s waste management
procedures underscore our efforts
to diminish toxic emissions. By
treating and disposing of hazardous
waste in accordance with the highest
environmental protection standards,
we aim to avoid any adverse impact
on local ecosystems.

NOISE POLLUTIONMITIGATIONAt Marelli, we recognize that noise
pollution can affect the well-beingof both our employees and thesurrounding communities. Our
approach to noise pollution involves
a combination of periodic monitoringand preventive maintenance ofmachinery to ensure they operate
within the permissible noise levels.
We adopt best practices, in linewith local regulations and context,
for noise reduction by installingsound-dampening materials anddesigning noise barriers whereapplicable. We are also dedicatedto implementing noise-abating
technologies. For example, ourproduction lines are equippedwith devices designed to operate
quietly. As a result of one of thenoise pollution preventions, at
our Electronics Systems Corbetta
plant, in Italy, we were suggested
to substitute a compressor to avoid
significant noise due to wear and tearof the machinery.

ENVIRONMENTAL RISKASSESSMENT

Since 2021, we defined acommon approach to evaluating
the environmental aspects ofrisks and opportunities using
an internal procedure. The
procedure document establishesa systematic approach to assess theenvironmental impacts of activities,
products, and services from alife cycle perspective, identifying
significant impacts, and outlining
risks and opportunities.
The procedure applies criteria
to determine severity, relevance,compliance, and operational
control of environmental aspects
during normal and emergency
conditions. Marelli ensures theimplementation of this procedureacross all manufacturing andnon-manufacturing sites certified
by ISO 14001, emphasizing theimportance of continuously
updating the environmental
management system, maintaining
clear communication, and fulfilling
responsibilities at both Marelli Groupand plant levels, to safeguard
environmental integrity.

ENV IRONMENTAL
MANAGEMENT

Marelli Sustainability Report 2023

BIODIVERSITYENVIRONMENTAL
MANAGEMENTClimate Change Action

27

Energy Management

30

Waste Management

33

Water Conservation

35

Toxic Emissions

38

Biodiversity

39

To enable business and finance to assess, report and act
on their nature-related dependencies, impacts, risks andopportunities, the Taskforce on Nature-Related Financial
Disclosures (TNFD) recently developed a set of disclosure
recommendations and guidance. Using the TNFD
framework, we are evaluating how our operations
impact and depend on natural ecosystems.
As planned, in 2023 we performed
our first extensive Nature &Biodiversity Assessment at our
global manufacturing locations.
This has been backed up by our use
of ENCORE (Exploring Natural Capital
Opportunities, Risks and Exposure),a tool for measuring natural capital,
risks, impacts and drivers.

For the latest news, visit our
website: marelli.com

We also use Swiss Re’s BES
tool, which has given us acomprehensive view of the stateof terrestrial ecosystem services
globally, with maps coveringten different services, including
biodiversity intactness, pollination,
air quality, water security, water
quality, soil fertility, erosion
control, coastal protection, foodprovision, and timber provision.
For each service, specific indicators
are used to assess its status. These
indicators include measures such as
the proportion of nitrogen retained,
annual net primary production, andhabitat intactness index. The tool
enables Marelli to evaluate the statusof such indexes in the locations of
its own manufacturing sites and therisks related to how the business
depends on ecosystem services andwhat potential impact it has on them.

Combining these assessments has
pinpointed sites that significantly
rely on nature, especially water
resources, and those located in
more biodiverse environments,
where our activities may have moresignificant effects if the impacts are
not properly managed. Notably, we
have recognized the importance ofwater usage and quality. In particular,a few of our facilities are facing highwater stress, aligned to the findings in
our water risk assessment (see page36). Baseline water stress measures
the ratio of total water demand toavailable renewable surface andgroundwater supplies. To protect ourbusiness and water reserves we are
implementing measures at these sites
to enhance water resilience.
Although none of our plants
are situated in regions of highbiodiversity intactness, in linewith GRI 101 standards, we arevoluntarily reviewing our naturalenvironment interactions andcrafting a Marelli Group-level
Policy for Biodiversity. With
this initial understanding, weare developing a more robust
biodiversity strategy, which will be
integrated into our environmental
goals and communicated throughforthcoming Sustainability Reports.
Read more about ourapproach to watersee pages 35–37

39

RESPONSIBLE
CORPOR ATE CI T IZENRESPONSIBLE
CORPORATE CITIZEN
Sustainability Governance

41

Respect for Human Rights

42

Data Responsibility
and Cybersecurity

45

Sustainability in the Supply Chain

47

40

Marelli Sustainability Report 2023

04 RESPONSIBLE
CORPORATE CITIZENAt Marelli, integrity is one of thecore values that guides us every
day – we entrench ethical practices
and compliance into our day-to-day
dealings with all our stakeholders.
ESG considerations are also a
cornerstone of our strategic agenda,
which is reviewed with our board.
Marisa Iasenza, Chief Legal Officer

For the latest news, visit our
website: marelli.com

Sustainability Governance

41

Data Responsibility and Cybersecurity

45

Commitments for the future

41

Safeguarding against cyber threats

45

Respect for Human Rights

42

Progress in 2023

45

Our approach

42

Artificial Intelligence

46

Progress in 2023

42

Commitments for the future46

Supplier audits

43

Sustainability in the Supply Chain

47

Whistleblowing hotline

43

Our approach

47

Commitments for the future

44

Progress in 2023

47

Supplier Code of Conduct

47

Identifying supply chain risk

48

ESG criteria for supplier nomination48

Conflict minerals

48

Commitments for the future

49

RESPONSIBLE
CORPOR ATE CI T IZENSUSTAINABILITY GOVERNANCERESPONSIBLE
CORPORATE CITIZEN
Sustainability Governance

41

Respect for Human Rights

42

Data Responsibility
and Cybersecurity

45

Sustainability in the Supply Chain

47

Through our new Design-led Sustainability approach, we are building
a new culture at Marelli, where responsible business becomes the norm,and sustainability is always front and center of decision-making.
To ensure we meet the expectationsof every stakeholder, we arecommitted to embedding ESG
considerations across our core
governance structures and havemade great strides during 2023 indeveloping our approach.

ESG OVERSIGHT

In 2023, we formalized sustainability
oversight by making it a standard
item on the board agenda. Our
highest decision-making body,the Marelli Holdings board of
Directors, is composed of ten
members and the sustainability
strategy, targets and roadmap
are all reviewed and approved by
the board (for more information
see page 70). They are supported
by five members of the Nomination,
Governance, and Human CapitalCommittee (NGHCC). The Committee
reviews progress on Marelli’s
sustainability targets quarterly.
To ensure that internal sustainability
targets are effectively monitored
and managed, we have establisheda sustainability structure at abusiness unit level that allows for
rigorous management and trackingof sustainability performance acrossthe business units.
For the latest news, visit our
website: marelli.com

41

Marelli Sustainability Report 2023

SUSTAINABILITY COUNCIL

To ensure informed decisions inour board meetings, the Marelli
Sustainability Council conducts anin-depth analysis of our progress
toward our sustainability goals,
and is responsible for setting
sustainability-related targets andmilestones to ensure we realize
our 2025 ESG roadmap.

The Council is composed of eight
members of the Group Executive
Committee (GEC) and is chaired by
the CEO. The Council is responsible
for monitoring and reviewing
progress, prioritizing investments
and aligning the decision-making
process to advance Marelli’s
sustainability goals.

SUSTAINABILITY COMMITTEE

Each ESG target has an executive
owner and a champion who works
with the sustainability team tomonitor the execution of the ESG
strategy and support the business
units to achieve the targets. All
business units and functions haveappointed teams, culminating ina collective of over 100 committed
individuals who make up the
Marelli Sustainability Committee.
This comprehensive Committee
interfaces directly with the groupsustainability team to meet thetargets and milestones set by the
Sustainability Council. Together, theycollaborate to monitor and drive
the necessary initiatives to address
all topics identified in our double
materiality matrix and respond andprepare for regulations, reporting,and requests from our partners.
The Committee and the Council
are aided by other functions suchas the Innovation Council andDiversity, Equity, and Inclusion
Council in cascading action plans
to all our businesses.

INCENTIVIZINGSUSTAINABILITYFOR OUR PEOPLE

To further illustrate how embedded
sustainability is in the governanceof Marelli, ESG targets are now
incorporated into the performanceand evaluation objectives of allteams, all the way from the executive
sustainability sponsor to all plant
managers. Energy efficiency targets
form part of the remuneration of theemployees eligible for the short-term
incentive plan. In 2023, enhancing
energy efficiency was an integral partof the short-term incentive plan’scorporate goals. Approximately 3,000
Marelli employees saw their bonuses
impacted by the achievement ofthese ESG targets, which accounted
for 5% of their total bonus amount.
In 2024, this will increase to 10%
and will include Scope 1 and 2
emissions reduction targets inaddition to energy efficiency1.

MANAGING ESG RISKS

In 2023, we began the preliminary
integration of ESG risks into ourEnterprise Risk Management(ERM) framework, aligned with
the international standard “ISO
31000: Risk Management”. This
integration will be substantiallyenhanced with the deployment of
our new ERM tool, scheduled forthe second half of 2024, advancing
our alignment with global risk
management practices. Our CEO
and board will be supported by the
Audit and Risk Committee who willoversee critical sustainability factors
alongside other organizational risks,such as assessing suppliers’ ESG

compliance as part of the sourcing
risk. ESG and compliance risks are
two of the enterprise risks we assess
our business against.

COMMITMENTS FOR
THE FUTURE

In 2023, we started to embed theSustainable Development Goals(SDGs) into our roadmaps, policies,
and targets. In 2024, we will
monitor the progress against theSDGs mapped and adopt a moreproactive approach to educate ourteams on the expected efforts tocontribute to the goals by 2030.
The board’s involvement in andcommitment to sustainability will
only increase in the coming years.
In 2024, the plan is to increase
the coverage of verified data, as
we include emissions reduction
as a target in our compensation
programs. We will also be focusing
on updating our Human Rights
Policy in 2024 to better reflect
the needs of all our diverse
stakeholders.

Corporate resilience is an importantfeature of a sustainable organization.
Following a focus at the highest
level of the company. Marelli will
launch a comprehensive crisis
response system in 2024 that will
centralize and coordinate our crisis
management across all facilities.

1	The boundary for our targets include active
sites in the current year, for example, 2024
targets consider all productive active sites,
whereas the data disclosed in this reportconsider all sites active in 2023.

RESPONSIBLE
CORPOR ATE CI T IZENRESPECT FOR HUMAN RIGHTSRESPONSIBLE
CORPORATE CITIZEN
Sustainability Governance

41

Respect for Human Rights

42

Data Responsibility
and Cybersecurity

45

Sustainability in the Supply Chain

47

Protecting human rights is essential for ensuring
a resilient value chain. We require our partners
and suppliers to match our high commitment
to compliance and human rights.
In 2023, we launched a Supplier
Code of Conduct which includes
our Human Rights Policy. In
addition to the Code of Conduct,
we have a range of global policies
and procedures covering topics
as diverse as Anti-Boycott Laws,
Insider Trading, Privacy andinformation security, among manyothers1. In 2024, Marelli is set
to introduce a comprehensive
gifts and hospitality framework,
complete with a dedicated tooland procedure. This will provide
clear guidance to our employees
regarding the acceptable practices
for giving and receiving gifts
and entertainment, ensuring
alignment with our company’s
Code of Conduct.
You can read our business
policies here: www.marelli.com/
en/sustainability/policiesethics-compliance.html

A NEW CODE OF CONDUCTFor the latest news, visit our
website: marelli.com

42

Marelli Sustainability Report 2023

In 2023, we began developing a
new Marelli Code of Conduct which
includes a totally new look and feel.
The initial draft is under review
by internal stakeholders, and weplan to release it by the second
half of 2024.

Some of the major differences fromour previous Code of Conduct is
the inclusion of specific sections toensure we comply with or exceed
emerging legal and customer
requirements. These include such
topics as (i) Choosing Supplierswith Integrity, (ii) Collaborating
Responsibly with Third Parties,(iii) Community Involvement andCorporate Citizenship, and (iv)
Protecting the Environment andBuilding a Sustainable World.

OUR APPROACH
To ensure we are taking realaction to protect human rights
and conduct business in a waythat is fair and decent, we pledge
to have all our sites locatedin EIRIS A and B list countries2
certified as SA8000 compliant by
2025, following self-assessments
performed in 100% of our active
production plants in 2023. SA8000(Social Accountability 8000) is aninternational auditable certification
standard that encourages
organizations to develop, maintain,
and apply socially acceptable
practices in the workplace. For a
global manufacturing company
such as Marelli, with operationsin 24 countries around the world,
ensuring alignment with thisstandard is paramount. We strive
for freely chosen employment,elimination of child labor, assuranceof health and safety standards,
respect of freedom of association,
no discrimination, compliancewith laws and industry standards
on working hours and payment ofa living wage, among others.

PROGRESS IN 2023
As a first step towards our 2025
target, we have performed SA8000
self-assessments at all our active
manufacturing sites. Based on theirresults, we are creating a road mapof certification for each site. We will
tackle these areas in a prioritized
sequence, attending to eachaccording to its significance andtime-sensitivity.
Beside the SA8000 selfassessment, three of our plants
in China, located in Changchun,
Foshan, and Guangzhou,
successfully concluded the
Responsible Business Alliance(RBA) Validated Audit Process(VAP) audit in 2023.

1	Other Policies include: Marelli Ethics and Compliance Charter, Conflicts of Interest Policy, Export, Import and Anti-Boycott Laws Compliance Policy, Anti-Trust andInsider Trading Policies, Anti-Bribery and Anti-Corruption Policy, Meeting with Competitors including Business Associations, Privacy Policy, Information Security
Policy, Financial Account Management Policy and Basic Policy Against Anti-Social Forces, also covering money laundering and fraudulent activities, among others.
2	Sites located in China, India, Turkey, Morocco and Thailand as defined by the Human Rights toolkit form UNEP available on https://www.unepfi.org/
humanrightstoolkit/geographic.php.

COMPLIANCE AND HUMAN RIGHTS

100%

of our active production
plants completing SA8000
self-assessment in 2023

100%

critical sites (44 sites) to becertified according to SA8000
by 2025

We conduct extensive training on subjects relating to complianceand human rights to make sure that our employees understandand are aligned with the company’s standards. In 2023, we provided
17,668 hours of compliance training (Code of Conduct, Human Rights,
Business Ethics, Diversity, Equity & Inclusion, and Discrimination).
96% of targeted employees were trained on the principles of ourCode of Conduct in 2023.
Total hours in 2023
Training

FemaleMaleGrand Total

Business Ethics and Compliance

325

875

1,200

Diversity, Discrimination and Harassment

606

860

1,466

3,652

11,35015,002

Human rights
Mandatory compliance training
for all employees is conducted ona periodical basis. The main topics
to be covered in 2024 are thefollowing:• Code of Conduct• Human Rights• Conflict of Interest• Anti-bribery• Harassment

We have also planned additional
training on environmental
compliance for the following
roles once a year:• Engineering• Product Management• EHS• Plant managers• Purchasing

RESPONSIBLE
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Sustainability Governance

41

Respect for Human Rights

42

Data Responsibility
and Cybersecurity

45

Sustainability in the Supply Chain

47

Supplier audits, carried out by athird-party expert on our behalf,
examine suppliers’ performancein relation to human rights, labor
conditions, health & safety, ethics,
and compliance, as well as emissions
and environmental topics.

THIRD-PARTY PERSPECTIVE
ON OUR STANDARDS

We asked Ethisphere, a company
that collects, analyses andmeasures data relating tobusiness ethics, to assess thematurity of our complianceprogram in 2023. Our intention incommissioning this assessment isto help us define and measure ourcorporate standards; we are working
to keep improving in line with
Ethisphere’s recommendations andadvice. We are doing this to ensurethat our policies and programs
are robust and able to support
our aspiration to meet the highest
ethical standards.

We are increasing year by year
the number of audits, planning toachieve 50 in 2024. For instance, in
2023 we received the commitment
from an audited supplier to become
certified according to SA8000. This
was agreed based on the audit
identifying critical gaps regarding
social sustainability assurance.
We also use Resilinc2, a leading
cloud provider of supply chain risk
monitoring, resilience intelligence
and analytics, to proactively monitor
risk in our supply chain for over 5,000
of our suppliers. We can report that
almost all suppliers have no criticalresiliency risk. For those in high-risk
locations, Marelli is implementing
preventative and corrective actions,as well as starting to request
evidence of robust “BusinessContinuity Plans.” We monitor criticalresiliency risk on a weekly basis.

SUPPLIER AUDITS

For the latest news, visit our
website: marelli.com

43

Marelli Sustainability Report 2023

We undertook several proactive
measures in our supply chain toensure rights related to freedom of
association and collective bargaining
are respected, and to preventthe use of child and forced labor.
Following EIRIS1 criteria used by
UNEP in its human rights toolkit,
we prioritize but did not limit the
supplier audits to countries A/B.

ANTI-CORRUPTIONPR ACTICESIn 2023, we demonstrated strict
adherence to anti-corruption
compliance, reporting no significant
non-compliance instances with
anti-corruption laws. However, we
identified and promptly addressed
two instances of corruption: one
involved in commercial bribery andthe other involved in a supplier’s
corrupt endeavor. The incidents
resulted in disciplinary actions,
including employee dismissals andthe termination of a contract witha business partner. We maintained
a clean legal record with no public
corruption cases, underscoring
our unwavering commitment toethical operations and transparent
corporate governance.

In 2023, we received a total of
293 concerns; remediation wasprovided for all substantiated (57)and closed cases. None of theseraised concerns were deemed tobe significant and no government
fines have been levied. The
rest of the cases are either still
under investigation or have notbeen substantiated. Among thesubstantiated cases we have found
one case of corruption, notified
via an employee walk-in and which
resulted in disciplinary action of theemployees involved. The other caseof corruption incident was reported
via anonymous email and wassubstantiated in 2024.

WHISTLEBLOWING HOTLINE

To ensure adherence to ethicalbusiness principles described in
our policies mentioned previously,
we have an Integrity Hotline3,
run independently by a thirdparty specialist provider, Navex.
This anonymous and confidential
whistleblowing system is accessible
in all countries4 and in 18 languages.
The hotline allows employees andthird parties to report possible
breaches of our Code of Conduct or
any irregular activity that may be
inconsistent with the principles thatdrive Marelli.

1	EIRIS A and B list countries: Sites located in China, India, Turkey, Morocco and Thailand as defined by the Human Rights toolkit form UNEP available on
https://www.unepfi.org/humanrightstoolkit/geographic.php.
2	Resilinc is an AI platform applied worldwide – collecting information on economic, geopolitical, bribery, corruption, and sustainability claims. Risks are quantified
and a resiliency risk score is assigned. 100% of our active suppliers are monitored through the platform that has a network of more than 108 million publicly
available sources. It collects information on news and events in key risk topics (e.g., geopolitical, bribery, corruption, investigations, and sustainability claims).
It operates in over 50 languages. Whenever risks emerge, Marelli is notified and given 24/7 updates on how suppliers are being impacted.
3	https://secure.ethicspoint.eu/domain/media/en/gui/105365/index.html This anonymous and confidential whistleblowing system is accessible in all countries(except for Morocco, Korea, and Russia due to legal constraints) and in 18 languages. It includes the following categories of reporting: Anti-Boycott, Anticompetitive Behavior, Bribery and Corruption, Conflict of Interest, Discrimination, EHS, Export Controls, Financial/Accounting, Fraud, Harassment, Threats andAssaults, Information Security, Internal Working Environment, Money Laundering, Product Regulatory & Safety, Retaliation, Safeguarding of Assets, and Others.
4

Except for Morocco, Korea and Russia due to legal constraints.

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Marelli Sustainability Report 2023

RESPECT FOR HUMAN RIGHTS CONTINUEDRESPONSIBLE
CORPORATE CITIZEN

CASES BY CONCERN CATEGORY

Sustainability Governance

41

Respect for Human Rights

42

Category

nr. % on total

Data Responsibility
and Cybersecurity

HR, Diversity and Workplace Respect

175

59.8

45

Business Integrity

59

20.1

Sustainability in the Supply Chain

47

Misuse, Misappropriation of Corporate Assets

10

3.4

Environment, Health & Safety

6

2.0

Accounting, Auditing & Financial Reporting2

0.7

Others

41

14.0

Total

293

100.0

ACTION TAKEN ON CLOSED CASES
Actionnr. % on total

Advice/Assistance Provided

23

Discipline

19

31.1

Termination

9

14.8

Policy/Process Review

7

11.5

Training

2

3.3

Remediation

1

1.6

Total

61

100.0

37.7

We conducted a benchmarking
exercise of the Marelli hotline
alongside similar-sized global
companies. The exercise showedthat our reporting rates are
relatively low; among our peergroup the median number ofreports per 100 employees is 0.98,
whereas at Marelli it is 0.48. While
we observed that 66% of Marelli
employees felt confident thatthey could report a complianceconcern to their manager or theCompliance Hotline, we recognize
the necessity to improve thisstatistic to ensure an environmentof complete trust and openness
in line with the best practices ofa Great Place to Work. We have,therefore, taken various actionsin 2023 to address this concern
directly. We are looking at the
responses to this question and willreport back on the results of thatanalysis in next year’s report, but wenevertheless took action in 2023 to
begin to address the concern.

SUBSTANTIATED CASES PER CATEGORY
ActionFor the latest news, visit our
website: marelli.com

Harassment, Threats and Assault

22Internal Working Environment

17

Conflict of Interest

5

Others1

5Bribery and Corruption

2

Fraud

2

Discrimination

1

Environment, Health & Safety1

Retaliation

1

Safeguarding of Assets

1

1	The category of “Others” covers Fraud, Product Regulatory and Safety, Anti-Competitive Behavior,
Bribery and Corruption, Conflict of Interest, Money Laundering, Export Controls, Anti-Boycott.

In 2023, 6,795 employees
were trained on how to raise
concerns without fear of
retaliation. The campaign
also focused on managers’
responsibility to createa culture of compliance.
Accordingly, 666 managers
in Brazil, Japan, Italy, China,
Mexico, Thailand, Spain, UK,
US and Turkey were involved inface-to-face trainings. As partof the awareness campaign
to incentivize employees
to speak out, a QR code tofacilitate the mobile intake ofcomplaints has been publishedin many plants starting in lateNovember 2023.

In 2023, with the entry into
force of the “European Directive
2019/1937” on whistleblowing andrelated national transposition laws,
we have increased our focus onprotecting whistleblowers, allowing
the choice to report at central or
local level, defining a retention
policy to regulate the storage of acomplainant’s personal data, anddrafting a transparent complaint
management procedure.

COMMITMENTS
FOR THE FUTURE
In 2024 and beyond, we will
establish a Compliance Champion
network, for which we havealready begun a pilot programin Turkey. With feedback from this
we aim to learn how to expand
this to other sites, potentiallystarting in Eastern Europe.
Compliance Champions will be
actively supported by the Global
Compliance Program Leader andconnected to each other via regularcommunications through a varietyof channels (e.g., newsletters,
meetings, etc.). The goal of theCompliance Champion network is toshare resources and lessons learned
with core responsibilities on:• Supporting the complianceteam with implementation ofcompliance initiatives locally.
• Cascading compliance training
through a train-the-trainer
approach.
• Localizing policies, procedures,and communications based onrisks and local particularities.
This will help to build a cultureof business compliance, which ishigh on everyone’s agenda. It willcomplement the extensive training
and awareness raising programthat we are rolling out in 2024.
Our Human Rights Policy is an
integral part of our Code of
Conduct. In 2024, the Group
Executive Committee (GEC) will
discuss and approve changes
to our Human Rights Policy toinclude the rights of Indigenous
peoples, refugees, and othergroups that warrant particular
protection. While our new
Code of Conduct for employees
will include topics such as
biodiversity, deforestation, andthe use of Artificial Intelligence(AI), demonstrating our holistic
approach to protecting people
and the environment.

RESPONSIBLE
CORPOR ATE CI T IZENDATA RESPONSIBILITY AND CYBERSECURITYRESPONSIBLE
CORPORATE CITIZEN
Sustainability Governance

41

Respect for Human Rights

42

Data Responsibility
and Cybersecurity

45

Sustainability in the Supply Chain

47

Protecting our business and customers against data
breaches of any kind is a very important focus at Marelli.
As vehicles are increasingly software dependent, data
integrity is a crucial topic on our agenda as we help
develop the “software-defined vehicle.”
To do this securely, it’s vital that we
handle, process, store and sharethe data we hold responsibly andproperly, as well as protecting it andthe systems that contain it.
Data responsibility at Marelli
encompasses a range of policies
and actions designed to protect
the confidentiality, integrity, andavailability of data. These include
our Information Security Policy,
Information Classification Policy,
and Product Cybersecurity Policy,
among others. This extends
beyond mere compliance withlegal requirements, pursuing bestpractices that align with international
standards and ethical considerations.

SAFEGUARDING AGAINSTCYBER THREATS

For the latest news, visit our
website: marelli.com

45

Marelli Sustainability Report 2023

Marelli’s data responsibility andcybersecurity are fully integrated
throughout the company. Our
comprehensive security measuresprotect our business from threats
within our supply chain. We reporton cybersecurity to our board
regularly, emphasizing both system
resilience and the critical role of ouremployees in safeguarding against
cyber threats.

PROGRESS IN 2023
SYSTEMS PROTECTION

Marelli is adopting a new data loss
prevention strategy to reinforce
the security of sensitive data,such as intellectual property andpersonal information.
We aim to classify and monitor data toprevent unauthorized sharing or dataleakage. This will enhance security
while ensuring compliance with dataprotection laws and mitigating therisks of data breaches. We aim tobuild on current deployment of thestrategy, to cover all our countries
within the first half of 2024.
We have increased overall security,with state-of-the-art technology
and AI-based solutions filtering
spam and malicious emails. In thelast quarter of 2023, we received
98.6 million malicious emails, ofwhich 75.3 million were blocked.
The remaining 23.3 million wereclassed by Marelli as legitimate
emails. To monitor and stayahead of phishing attacks, ouranti-phishing service has shown
us that approximately two outof every two million emails we
received in 2023 constituted athreat. These threats are carefully
and constantly monitored byour security operations center.

The center on average responds to
700 events per day, and manages
an average of 230 cyber-attacks permonth. To do more, we continue totrain our employees to be cautious,
helping them identify threats, but
we are pleased to report that the
number of emails posing a threat
to Marelli is very low.

THE HUMAN ELEMENT

Through a comprehensive
cybersecurity training program in
2023, we have actively upskilled
our workforce in recognizing
and mitigating cyber threats,achieving a notable reduction insusceptibility to phishing attacks
from 13% to 9% over the year. The
implementation of regular phishingawareness tests on a quarterly
basis, along with the completionof mandatory general security
training by 81% of the employees,
ensures that cybersecurity
awareness remains high amongstaff. Moreover, zero data breaches
in 2023 attest to the effective
assimilation of training content andadherence to best practices. The
deployment and targeted utilizationof advanced, extended detection andresponse (XDR) tools, have further
enhanced the protection of sensitive
corporate data, aligning with theongoing commitment to robust andresponsive cybersecurity strategies.

IRP AND CRISISRESPONSE PLAN

Following a comprehensive tabletop
simulation of a cyber crisis involving
Marelli’s top management, we createda handbook offering an accessible
guide for prompt and effective actions
to take in such an event.

23,924hours of cybersecurity anddata privacy training in 2023

81%

of employees completed
mandatory cybersecurity
training in 2023

Our goal for the upcoming year
is to finalize a detailed incident
response plan, complete withall the necessary tools andagreements to navigate thecomplexities of cyber incidents
swiftly and with precision. This
proactive approach is instrumental
in maintaining business continuity
and safeguarding against
potential operational, financial,or reputational impacts resulting
from cyber threats.

RESPONSIBLE
CORPOR ATE CI T IZENDATA RESPONSIBILITY AND CYBERSECURITY CONTINUEDRESPONSIBLE
CORPORATE CITIZEN
Sustainability Governance

41

Respect for Human Rights

42

Data Responsibility
and Cybersecurity

45

Sustainability in the Supply Chain47

For the latest news, visit our
website: marelli.com

46

Marelli Sustainability Report 2023

DATA PRIVACY

Marelli addresses data privacy
complaints through dedicatedchannels. We have a specific email
for general data protection claims,
accessible on our website “Privacy
Policy” page. We also offer OEM
customers dedicated channels for
product-related issues, throughSales and Account channels.
These channels are reviewed by
the Data Protection Officer (DPO),
in collaboration with cybersecurity
experts. Our approach to customer
data privacy is governed by policies,
including the Information Security
Policy and Data Classification Policy.
To protect customer data, aspecialized cybersecurity team, led
by the Chief Information Security
Officer (CISO), ensures security-bydesign and strict data management
controls, aligned with the TISAX
framework. Furthermore, ourInformation Security Management
System is aligned with the
ISO 27001 framework.

CERTIFICATION

Our product development
processes are aligned to theinternational ISO 21434 standard.
This standard defines requirements
for cybersecurity risk management
in road vehicles, and in 2023 we
obtained ISO 21434 certificationfor our Automotive Lighting and
Sensing business.
With regard to information security,
in 2023 we were conferred 26
active security certifications. 24of those 26 information security
certifications were awarded by
the Trusted Information Security
Assessment Exchange (TISAX), which
is a widely recognized international
standard for information security inthe automotive industry. The needfor certifications is set to continue
to increase as this is becoming astandard requirement of OEMs.

CYBER-SECURE SUPPLIERS

In December 2023, we launched
the Supplier Code of Conduct thatdemands the same level of rigor
from our suppliers regarding data
responsibility and cybersecurity
as we do from ourselves. The newcode includes data security,
cybersecurity, data integrity
and AI‑related requirements
for suppliers.
We require suppliers to establish
end-to-end cybersecurity measures;a comprehensive cybersecurity
strategy, governed by best practices
and modern key technologies, areprerequisites to ensure adequate
information security.

ARTIFICIAL INTELLIGENCE

Maya, our own Marelli Generative
AI chatbot, based on OpenAI
technology, was launched in
October 2023, and progressively
extended to all our employees.
Maya supports employees in their
daily work, helping them to increase
their productivity and solving
many tasks. Maya operates in a
Marelli-owned private Microsoft
Azure tenant, and inquiries andresults are not shared with any
third party, including Microsoft.
Further implementations will
be actioned in the first half of2024 to enhance data security
and the privacy of internal
communications with Maya.

DATA POINTS

023,924

10%

0

26

4

No data security
breaches in 2023

users failing to detect aphishing attack in 2023
against an industry
benchmark of 17.8%

active information
security certifications,seven more than in
2022. 24 out of 26
security certifications
are TISAX

hours of cybersecurity
training

No significant cyberincidents in 2023

Number of phishingtests sent in 2023

COMMITMENTS FOR THE FUTURE
Marelli is committed to the relentless
improvement of our cybersecurity
measures. In 2024, we willcomplete a sophisticated Incident
Response Plan and enhance ourtraining to fortify our protection
against emerging threats. Our
focus on advancing our Data Loss

Prevention strategy and meeting
industry requirements will further
reinforce our secure operating
environment. By concentrating onthese areas, Marelli aims to exemplify
best practices in cybersecurity
management and resilience.

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Marelli Sustainability Report 2023

SUSTAINABILITY IN THE SUPPLY CHAINRESPONSIBLE
CORPORATE CITIZEN
Sustainability Governance

41

Respect for Human Rights

42

Data Responsibility
and Cybersecurity

45

Sustainability in the Supply Chain

47

Sustainability in the supply chain and material sourcing is becoming increasingly
important to our industry and has emerged as a highly important topic in ourdouble materiality assessment in 2022. As environmental concerns grow, sodoes the industry’s need to reduce its carbon footprint and adopt eco-friendly
practices. This shift extends to every stage of the supply chain.
OUR APPROACH

As reflected in our Design for
Sustainability approach, we arefocused on responsibly sourcing
materials, protecting human rights,
incorporating recycled or renewable
resources, and optimizing production
methods to minimize waste.
We assert the significance placedon collaborative efforts with
our suppliers and adherence
to defined objectives to jointly
champion growth and impact
sustainability positively. We expectthat our suppliers will integrate
the interwoven elements ofsustainability, compliance, andinnovation into their operations.

PROGRESS IN 2023

For the latest news, visit our
website: marelli.com

I want to acknowledge the efforts of our 600+
suppliers last year responding to our queries
on Scope 3 emissions. Despite encountering
challenges in data availability and consistency
we now have a clear roadmap of priority
suppliers to engage. Moreover, our priorities
to all our active suppliers are ensuring humanrights and labor conditions are monitored
and mitigated at our suppliers’ premises, andcollaboration to promoting circularity andincreasing recycled contents without costescalation.
Andy Koehler, Chief Purchasing Officer

SUPPLIER CODE OF CONDUCTIn March 2023, we launched ourSupplier Code of Conduct, whichsets out in detail what we requirefrom our suppliers. We supported
the launch with an extensive
engagement and communication
program. We are currently working
on an effective training program for
suppliers with actionable insights to
help them implement our Supplier
Code of Conduct to support oursustainability strategy.

The introduction of the Supplier
Code of Conduct is part of the
profound culture shift that has takenplace at Marelli and in our supply
chain in recent years. Similarly,
our suppliers’ attitudes towardsustainability are transforming fromunawareness to readiness, with a
newfound commitment to reachingsustainability goals. This is also
catalyzed by end user customer
interest in improving the impact on
their own value chains.
At the highest level, the purposeof our Supplier Code of Conduct
is to ensure that our suppliers
understand and act in accordancewith our own approach to
cybersecurity, human rights,
health and safety, environment
and energy consumption,
responsible sourcing of raw
materials, business ethics
and compliance and supplier
responsibility. In 2023, we begantraining our buyers and suppliers onsocial impact and climate change.
To ensure the knowledge of, andcompliance with, any applicablelaw, act, directive, or regulation
we also engage suppliers throughour Purchasing target letter which
outlines Marelli’s commitments to
ESG. In the letter we communicate
legislative drivers such as the German
Act on Corporate Due Diligence
Obligations in Supply Chains, theFrench Duty of Vigilance, or the
Uyghur Forced Labour Prevention Act.

We expect our suppliers to maketheir maximum contribution
towards the United Nations 2030
Sustainable Development Goals.
We also expect our suppliers
to make the same demands oftheir own suppliers, so we can beassured of the sustainability ofthe entire supply chain. Though
this is a difficult task, it is one we arecommitted to championing.
In our 2023 Purchasing target letter
we outlined specific quantitative CO2
reduction targets to our suppliers:
to measure their carbon footprint(Scope 1, 2, and 3 emissions), anddevelop plans targeting at least a
25% emissions reduction by 2025,with annual progress reporting.
We require our suppliers to increase
the use of renewable energy andrecycled materials. They are also
encouraged to proactively explore
avenues for product innovationthat include new applications ofrecycled materials, to aim for water
utilization reductions in production
processes, and to minimize waste at
manufacturing sites.

RESPONSIBLE
CORPOR ATE CI T IZENSUSTAINABILITY IN THE SUPPLY CHAIN CONTINUEDRESPONSIBLE
CORPORATE CITIZEN
Sustainability Governance

41

Respect for Human Rights

42

Data Responsibility
and Cybersecurity

45

Sustainability in the Supply Chain

47

Although we aim to engage
suppliers, monitor their performance,
raise awareness, minimize negative
impacts, and promote positive
initiatives throughout the supply
chain, we acknowledge this is along journey and we are just at the
beginning. One initial challenge
we face is the comparability andreliability of emissions data collectedfrom our suppliers. Supplieremissions are therefore still adeveloping metric for Marelli.
However, when it comes tothe ESG assessment and ISO
14001 required as a criteria fornomination of new suppliers,
we observed results that
overachieved the targets for 2023.
As we progress, our next objectives
involve deepening collaboration
with our suppliers to explore andimplement alternative materials
and strategies for decarbonization.
These concerted efforts aim to drive
meaningful change and align with
our vision of sustainability.
Read more about how we aretackling Scope 3 emissions
see page 28
Target 2025

For the latest news, visit our
website: marelli.com

48

Marelli Sustainability Report 2023

IDENTIFYING SUPPLYCHAIN RISKAs well as committing to the Supplier
Code of Conduct, risk relating todirect and indirect suppliers aremonitored via a risk management
platform. We map all our active
suppliers on Resilinc, whichrates them in terms of supply
chain resilience. In case a criticalresiliency risk is detected, Marelli
requests that the supplier provide
a consistent Business Continuity
Plan to mitigate the risk itself.
As is to be expected with increased
scrutiny our new, vigilant levels ofmonitoring have uncovered a small
number of areas of concern. You canread about our response to these
instances later in this section under
Conflict Minerals, and again in ourcompliance and human rights section
on page 42. The highlighting ofthese concerns is evidence that ourmonitoring is working. In the cases
we found, we took remedial actions
to ensure that our supply chain is up
to our standards.
Read about our approachto supplier audits
see page 43
Achievement 2023

80% of nominated suppliers
covered by ESG assessment

66%

75% of direct materials suppliers’
plants nominated with ISO 14001

71%

100% of suppliers with no criticalresiliency risk

99.96%ESG CRITERIA FOR
SUPPLIER NOMINATION

Alongside the Supplier Code of
Conduct, we introduced a newprocess for nominating suppliers
for upcoming projects to ensure
objectivity. Suppliers are requested
to complete the ESG selfassessment, have their plants
producing for Marelli certified
by ISO 14001, and have a notsignificant overall resiliency risk.
Two measures demonstrate theprogress we are making withregards to supplier nomination: inour baseline year 2021, 26% ofsuppliers completed ESG selfassessments while in 2023, this is
up to 66%; in 2021 around 22% of
those suppliers were ISO 14001
certified and now the figure
stands at 71%.

MATERIAL SOURCING

Sourcing materials responsibly isa crucial part of enabling DesignLed Sustainability, and for ensuring
the resiliency and integrity ofour value chain. In line with ourInnovation Strategy, we havestrict controls in place to ensure
ESG factors are considered whensourcing materials, and weengage our suppliers, especiallythose deemed to be higher risk,
to ensure sustainability-related
compliance and best practice. For
instance, we require our suppliers
to increase the use of renewableenergy and recycled materials tofurther improve our impact.
Read more about ourapproach to supply chain
sustainability
see pages 47–49

A SIMPLIFIED MATERIALSCATALOGIn 2023, we introduced a newmaterials catalog to streamline
our supply chain. For instance, thishas reduced the number of resins
listed for purchase by 97%. Thisaction carries indirect benefit to oursustainability efforts, allowing us tomake lower carbon intensity choices.
Refer to page 23 for more details on
our Design for Sustainability.

CONFLICT MINER ALSSupplier compliance with conflictminerals regulations is a must-havecondition for Marelli. This involves
providing detailed declarations aboutsourcing practices and creating
actionable plans to rectify any
instances of non-compliance within
the suppliers’ supply chain. Suppliers
are required to complete the Conflict
Minerals Reporting Template (CMRT)
and Extended Minerals Reporting
Template (EMRT), or to provide
a formal declaration of non-use
of conflict minerals. We monitor
and track the responses to andcompliance with these requests.

RESPONSIBLE
CORPOR ATE CI T IZENSUSTAINABILITY IN THE SUPPLY CHAIN CONTINUEDRESPONSIBLE
CORPORATE CITIZEN
Sustainability Governance

41

Respect for Human Rights

42

Data Responsibility
and Cybersecurity

45

Sustainability in the Supply Chain

47

As mentioned previously, our constant
supply chain risk monitoring throughResilinc revealed a compliancebreach, related to our Marelli Code of
Conduct, at an international smelting
company that was not a direct
supplier of Marelli but was part of our
supply chain. We took action to inform
those suppliers using the concerned
smelter to replace it. Failure to replace
the smelter could have an impact
on the supplier eligibility to new
businesses. We are following up ona regular basis with our suppliers,
receiving many positive responses,
indicating that they had replaced thesource of the supply or were in theprocess of doing so.

tools in place to better monitor
our supply chain compliance withconflict minerals regulations.

COMMITMENTS FOR
THE FUTURE

Going forward in 2024 and beyond,we plan to undertake supplier ESG
due diligence at three levels:
1.	Mapped ESG risk of our suppliers
at country level using AI solutions.
2.	If any risk is identified, we will
require ESG risk evaluation
through a third-party supplierrisk assessment portal.
3.	Dedicated ESG audit at
high-risk suppliers.

In 2023, we became members of
the Responsible Mineral Initiative(RMI). After a year of membership,
however, we concluded that we do
not intend to renew our affiliationfor 2024, as we consider we now
have a robust process and reliable

As we anticipate further deregulationin Europe, with the Corporate
Sustainability Due Diligence Directive
coming into force, we believe thatapproach will prepare Marelli to work
constructively with suppliers to thebenefit of all concerned.

NEGATIVE ENVIRONMENTAL
IMPACTS IN THE SUPPLY CHAIN
AND ACTIONS TAKENNEGATIVE SOCIAL IMPACTS
IN THE SUPPLY CHAIN AND
ACTIONS TAKEN

317
61
20

11.4%

32.8%

0

0

0

0

DATA POINTS• Minimum requirements to beeligible for nomination at Marelli(supplier nomination)• Supplier ESG self-assessment• Supplier production plants
certified by ISO 14001• Supplier with no significant
overall resiliency risk
NUMBER OF SUPPLIER AUDITS

3
2022

10
2023

Suppliers assessed for social impact
Suppliers with significant actual andpotential social impacts

317

184
21

For the latest news, visit our
website: marelli.com

49

Marelli Sustainability Report 2023

Suppliers with significant actual andpotential social impacts that have agreed
improvements following assessment% of suppliers with significant actual andpotential social impacts that have agreed
improvements following assessment
Number of suppliers with significant
actual and potential social impacts
where relationship was terminatedfollowing assessment• Target: 80% of all suppliers
nominated to respond to ESG
assessment by 2025
• Target: 75% of direct suppliers’
plants to be ISO 14001 certified
by 2025• Target: 100% of suppliersmonitored on resiliency by 2025

All people within our Purchasing
function have sustainability
objectives incorporated in theirprofessional objectives.
From last year: actual andpotential negative impacts:
11.4% for environmental impacts
and 32.8% for social impacts.

50

2024 (planned)2023 PROCUREMENT BUDGET SPENT ON SUPPLIERS
SOUTH AMERICA

7%

JAPAN & KOREAEUROPE42%

9%% of suppliers with significant actual andpotential social impacts where relationshipwas terminated following assessment

ASIA, CHINA& INDIA19%

NORTH AMERICA

23%

MARELLI PEOPLE

50

Marelli Sustainability Report 2023

05 MARELLI PEOPLE

MARELLI PEOPLE
Employee Engagement
and Well-Being

51

Prioritizing Employee Well-Being

55

Training and Development

57

Diversity and Inclusion

59

Occupational Health and Safety

62

Labor Relations

64

Social Contribution

66

Talent and dedication of ouremployees make Marelli thriveat speed. We prioritize theirdevelopment. Despite thechallenges of restructuring,
we have moved ahead withconfidence, fully committed
to employee engagement,labor relations, diversity andinclusion, and ensuring humanrights in all our operations.
Sherry Vasa,
Chief Human Resources Officer

For the latest news, visit our
website: marelli.com

Employee Engagement and Well-Being

51

Occupational Health and Safety62

Our approach51

Our approach

62

Progress in 2023

52

Progress in 2023

62

Prioritizing Employee Well-Being

55

Commitments for the future

63

Training and Development

57

Labor Relations

64

Our approach57

Our approach

64

Commitments for the future

58

Progress in 2023

64

Diversity and Inclusion

59

European Works Council64

Our approach

59

Social Contribution

66

Progress in 2023

59

Our approach

66

Commitments for the future

61

Progress in 2023

66

MARELLI PEOPLE

51

Marelli Sustainability Report 2023

EMPLOYEE ENGAGEMENT AND WELL-BEINGMARELLI PEOPLE
Employee Engagement
and Well-Being

51

Prioritizing Employee Well-Being

55

Training and Development

57

Diversity and Inclusion

59

Occupational Health and Safety

62

Labor Relations

64

Social Contribution

66

It is our employees that make Marelli the company it is. We prioritize their development,
recognizing that our collective potential is enhanced through support and growth. The
last couple of years have been challenging, as we have undergone the difficult processof restructuring Marelli to ensure it is fit for the future. We believe that we are now
prepared to move forward with confidence.
OUR APPROACH

A cornerstone of Marelli’s employee
engagement strategy is the emphasis
on providing a seamless and positive
onboarding experience for new hires
through our optimized Recruitment
and Onboarding Model. For newhires we adopt a “Glocal” approach,using our internal digital tools to
fully engage our employees. Our
processes ensure that employees
start their Marelli journey with astrong sense of belonging andunderstanding of the company
culture, values, and expectations.

As we emerge from the restructuringof the last two years, we are working
hard to create a sense of camaraderie
among our employees. We strive
to be a fair and decent employer
and we also have a number of
Employee Resource Groups (ERGs),
to support our diverse workforce.
Our commitment to finding andnurturing the best, diverse talent
drives our recruitment process, so
we can build a workforce that isaligned to our values and culture.

Read more about diversity,
equity & inclusion
see page 59

Read more about
training & development
see page 57

Number of employees1
2022

14,92635,4412023 12,922.5

30,662.5

FemaleMale

For the latest news, visit our
website: marelli.com

1

Management has decided to report 0.5 headcount each for 2 UK employees. These employees are part time employees who work only for 50% of standard hours.

MARELLI PEOPLE

52

Marelli Sustainability Report 2023

EMPLOYEE ENGAGEMENT AND WELL-BEING CONTINUEDMARELLI PEOPLE
Employee Engagement
and Well-Being

51

Prioritizing Employee Well-Being

55

Training and Development

57

Diversity and Inclusion

59

Occupational Health and Safety

62

Labor Relations

64

Social Contribution

66

DATA POINTS

78%

of employees think they
are treated fairly regardlessof race or ethnic origin

77%of employees think that they
are treated fairly regardlessof their sexual orientation

Top 10 statements

PROGRESS IN 2023
GENER ATION M

For the latest news, visit our
website: marelli.com

Marelli is committed to nurturing
the next generation of leaders byengaging with our high-potential
employees across various regions
and business units. The Generation
M program empowers these
individuals to partner with our
executive leadership on key
strategic projects, fostering
innovation and offering
extensive personal development
opportunities and mentorshipfrom and to the Global Executive
Committee (GEC). Participants gainsignificant exposure within Marelli
and work on special assignments.
In 2023, a team of 17 people wereselected to refine Marelli’s purpose
while in 2024, the focus will shift
to evaluating Marelli’s Employer
Value Proposition. A key aspect ofthe program is reverse mentoring,offering senior management
fresh perspectives from the newgeneration of our team members.

A GREAT PLACE TO WORK

We aim to become a certified
Great Place to Work, and we still
have work to do to achieve that,
including conducting a cultural audit.
However, we took an important firststep towards this goal in 2023: We
teamed up with the Great Place toWork organization and conducteda survey that, for the first time,
was sent to all our employees,with a participation rate of 90%.
The survey showed that Marelli is an
inclusive and welcoming workplacethat prioritizes health and safety, andthat people are proud to work for us,
with 78% of employees saying theyfelt fairly treated regardless of theirrace or ethnic origin.
The survey also revealed
important areas for our action.
Improvement areas are“recognition opportunities”
and “compensation structures.”
Additionally, the perception ofmanagement’s involvement indecisions demands improvement.
Both findings underline theimportance of strengthening ourleadership practices and fostering
a culture of trust and transparency.

Marelli
2023

76%

believe Marelli is a physicallysafe place to work

Bottom 10 statements

Marelli
2023

1

People here are treated fairly regardless of
their race or ethnic origin.

78%

1

I feel I receive a fair share of the profits
made by this organization.

40%

2People here are treated fairly regardless of
their sexual orientation.

77%

2

Promotions go to those who bestdeserve them.

40%

3This is a physically safe place to work.

76%

3

44%

4

People here are treated fairly regardlessof their gender.

Everyone has an opportunity to get special
recognition.

73%

4

Management involves people in decisions
that affect their jobs or work environment.

44%

5

I feel I can bring my whole self to workwithout any fear of discrimination.

72%

5

Management delivers on its promises.

45%

6

I understand and embrace
Marelli’s Attributes.

70%

6This is a psychologically and emotionallyhealthy place to work.

46%

7

When I look at what we accomplish, I feel asense of pride.

70%

7People here are paid fairly for the work
they do.

46%

8

When you join the organization, you aremade to feel welcome.

68%

8

Managers avoid playing favorites.

46%

9

I am able to take time off from workwhen I think it’s necessary.

68%

9Management hires people who fit inwell here.

46%

10

I feel confident that I can report acompliance concern to my manager
or the Compliance Hotline.

66%

10

People look forward to coming towork here.

46%

MARELLI PEOPLEEMPLOYEE ENGAGEMENT AND WELL-BEING CONTINUEDMARELLI PEOPLE
Employee Engagement
and Well-Being

51

Prioritizing Employee Well-Being

55

Training and Development

57

Diversity and Inclusion

59

Occupational Health and Safety

62

Labor Relations

64

Social Contribution

66

CELEBR ATE MARELLI

To reinforce peer-to-peer
recognition, in 2023 we launched
Celebrate @ Marelli. The program
offers monetary and non-monetaryrecognition. While Marelli
Kudos allows all employees toacknowledge and celebrate
their colleagues, sending them avirtual recognition whenever they
feel appropriate. Marelli WOW
enables managers (and above) tonominate team members or coworkers for achieving outstanding
results offering monetaryrecognition. Since its launch in July
2023, the program saw a total of
2,084 monetary awards (WOW) and
5,262 non-monetary recognitions(Kudos), totaling 7,346 instancesof employee recognition. A diverse
group of 3,130 unique recipientswere honored, with the highest
engagement in India, Italy, Brazil,
China, and Japan.

EMPLOYEE REMUNER ATION

Marelli’s compensation philosophy
considers a policy framework thatfacilitates systematic decisionmaking in employee compensation
matters. The remuneration policies
are crafted to balance fixed andvariable pay components inalignment with corporate objectives
and individual performance.

For the latest news, visit our
website: marelli.com

53

Marelli Sustainability Report 2023

The remuneration of the CEO
and his direct reports is approvedby the board of Directors andthe Nomination, Governance,and Human Capital Committee(NGHCC), as applicable.

Ratio of the annual totalcompensation for theorganization’s highest-paid
individual to the medianannual total compensation for
all employees (excluding thehighest-paid individual)

46.44 to 1

Percentage increase inannual total compensation
for the organization’s
highest-paid individual0%Median percentage increase inannual total compensation for
all employees (excluding thehighest-paid individual)

7%

1

BENEFITS PROVIDED TO FULL-TIME EMPLOYEESParental Leave

100%

Supplementary
Retirement Plans

In a significant move for 2023,
remuneration for senior executives
incorporates an ESG metric focusing
on our energy efficiency efforts,
integrating them into the variable pay
performance metrics, thus reinforcing
the emphasis on ESG considerations
within the company’s strategic focus
and accountability framework.

COMPETITIVECOMPENSATION
AND LIVING WAGE

As outlined also in our Human
Capital Management Policy, Marelli isdedicated to providing its employeeswith competitive compensation
packages that are market-aligned
and designed to drive motivationand peak performance. Tying
employee pay to performance, skill,
and adherence to company values
ensures that remuneration is both
equitable, and reflective of individual
contributions. Marelli’s regularreviews of its compensation offerings
further support this commitment toobjective and equitable pay practices.
By 2025, we aim to conduct a living
wage assessment to analyze our
employees’ wage levels against aliving wage benchmark. We aim
to ensure Marelli compensates
its employees based on market
standards, reinforcing ourcommitment to social equity
and staff well-being.

61%

Company-Provided
Health Plans

78%

Life Insurance

70%

Financial Support for
Disability/Invalidity

61%

Employee Cafeteria
or Lunch Vouchers

43%

Childcare Services

30%

Wellness andNutrition Programs
Gym/Fitness
Services

The management is tasked
with establishing remuneration
frameworks for the workforce andupdating the NGHCC accordingly.
Termination payments andretirement benefits are disbursedin accordance with individual
employment contracts and local
legal stipulations. In 2023 thecompensation ratio (the ratio
between the highest paid individual
and all employees) at Marelli
was 46.44. For comparison the
average ratio between CEOs in
the Automotive sector and theiremployees is 300 according to a
recent Wall Street Journal review.

65%
22%

1	A lower ratio suggests more equitable pay distribution within the company, while a higher ratio indicates a larger pay gap between the highest-paid person and the rest of the employees. As a reference, in 2023 the median CEO-to-employee compensation ratio
across the S&P 500 was 187-to-1. Source: S&P Global https://www.spglobal.com/marketintelligence/en/news-insights/latest-news-headlines/live-nation-reports-largest-2022-ceo-to-median-employee-pay-ratio-among-s-p-500-77039057

MARELLI PEOPLEEMPLOYEE ENGAGEMENT AND WELL-BEING CONTINUEDMARELLI PEOPLE
Employee Engagement
and Well-Being

51

Prioritizing Employee Well-Being

55

Training and Development

57

Diversity and Inclusion

59

Occupational Health and Safety

62

Labor Relations

64

Social Contribution

66

For the latest news, visit our
website: marelli.com

54

Marelli Sustainability Report 2023

INCENTIVESIn 2023, we introduced a MarelliGroup-level Short-Term Incentive
Plan (STI). A performance-based
compensation system promotesa high-performance culture byconnecting bonuses to specificbusiness targets and individual
accomplishments. The STI plan
has several advantages:● It boosts performance by tying
rewards directly to the fulfillmentof company and personal
objectives.
● It helps attract and retain
industry-leading talent througha competitive pay framework.
● It aligns employee motivation
with shareholder interests and
ESG objectives, ensuring a focus
on sustainability.
● It fosters employee participationin Marelli’s prosperity, enhancing
engagement and a sense ofownership.
● It strategically concentrates
employee efforts on areas
critical to Marelli’s competitiveedge and fiscal health.
● It accommodates mid-year rolechanges, promoting fairness andadaptability to workforce dynamics.
Ultimately, Marelli’s STI policy is
to provide mutually beneficial
outcomes—motivating employees to
excel while propelling the company’s
growth and sustainability.

1

https://www.fasif.it/.

2

https://www.fisdaf.it/Pages/HomePage.aspx.

3

https://www.fondometasalute.it/.

PRIORITIZING EMPLOYEE
WELL-BEINGAt Marelli, we prioritize our
employees’ well-being by ensuring
access to competitive andtailored benefits in each location.
Recognizing the role of such
benefits in attracting and retaining
skilled talent, we regularly
review and adapt our offerings toreflect industry standards, legal
requirements, and the uniqueneeds of our workforce. Ourcommitment goes beyond financial
rewards, aiming to holisticallysupport our employees throughcomprehensive packages thatmaintain a high standard of care andsupport for all team members whilevarying by region and employment
status. Currently, non-occupational
medical and healthcare services
are offered only in countries where
it is negotiated through collective
bargaining agreements. For instance,in Italy Marelli facilitates hourly andsalaried employees’ access to nonoccupational medical andhealthcare services throughSupplementary Agreements.

Until 1 June 2023, hourly andsalaried employees were coveredby the FASIF1 and FISDAF2
Supplementary Healthcare
Fund. With the transition to the
Metalworkers’ National Collective
Bargaining Agreement, startingfrom 1 June 2023 the Supplementary
Health Fund for the hourly andsalaried Marelli employees in Italy
became Metasalute3.

To ensure employees’ well-being
in all the countries where we
operate, we have a number of
initiatives to engage our people ona variety of important topics. These
include our work on building
employee awareness about
menopause, engaging schools,
and community-driven well-being
walks such as in Brazil.

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Marelli Sustainability Report 2023

PRIORITIZING EMPLOYEE WELL-BEINGMARELLI PEOPLE
Employee Engagement
and Well-Being

51

Prioritizing Employee Well-Being

55

Training and Development

57

Diversity and Inclusion

59

Occupational Health and Safety

62

Labor Relations

64

Social Contribution

66

BR AINS AND HEARTSMarelli has established the Brains &Hearts @Marelli Employee Resource
Group. This initiative is centered on
creating a workplace culture where
everyone feels safe, emotionally
supported, and encouraged to bring
their whole selves to their roles.

Our focus is on promoting theimportance of mental health andheart-brain integration, ensuring
a balance between work andpersonal life. Our first objectivewith this group is to enhance
understanding and awarenessregarding mental health. On 10
October, employees from acrossthe globe demonstrated solidarity
for mental health awareness bydonning green attire and sharing
their photos. This act of unity wasa powerful illustration of Marelli’s
engagement in mental well-being
and our commitment to fostering an
inclusive, healthy work environment
for all employees.

The abundance of photographs
received from various locations
highlighted our collective dedication
to normalizing conversations aroundmental health and advocating for it.

MENOPAUSE AWARENESS

In our commitment to employee
health and well-being, we hosted
Menopause Awareness Sessions
at our Llanelli site on 16 and 17
January. These sessions, led byexpert Sharon MacArthur, alias
Miss Menopause, highlighted ourproactive approach to fosteringa supportive work environment.
Attendees gained insights into theeffects of menopause, breaking
down associated taboos and learning
practical workplace strategies toaccommodate those experiencing
this natural life transition.
The initiative garnered exceptional
feedback, underscoring its
importance in enhancing thequality of work life.

For the latest news, visit our
website: marelli.com

MARELLI AWARDS FOR BESTSCHOOL RESULTS

On 24 November, Marelli upheld
its tradition of acknowledging
academic excellence through theMarelli Education Awards held in
Sosnowiec, Poland, celebrating forthe fourth consecutive year theabove-average school and academic
results of our employees’ children
across various educational levels.

This event, which was attended
by family members and Marelli
staff, underlines our commitment
to educational development andcommunity engagement. Following
this, in December 2023, Marelli Brazil
conducted its own Education Award
ceremony, recognizing 18 exceptional
young scholars (13 High School andfive University students) for theirstellar educational achievements.

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Marelli Sustainability Report 2023

PRIORITIZING EMPLOYEE WELL-BEING CONTINUEDMARELLI PEOPLE
Employee Engagement
and Well-Being

51

Prioritizing Employee Well-Being

55

Training and Development

57

Diversity and Inclusion

59

Occupational Health and Safety

62

Labor Relations

64

Social Contribution

66

MARELLI WALK IN
HORTOLÂNDIA

In our commitment to promoting
health and community engagement,
Marelli Hortolândia in Brazilorganized the “Marelli Walk” on
23 September 2023. This initiative
focused on encouraging a healthy
lifestyle among employees andfostering family integration.
Complementing the walk, a food
donation campaign was conductedto support a local community
institution and demonstrate ourdedication to social responsibility.
The event provided employees andtheir families with a platform toconnect in a relaxed setting.

SOUTHFIELD CELEBR ATES
EARTH DAYOn 20 April 2023, ahead of the
global Earth Day celebrations,a dedicated group of employees
volunteered their time to enhancethe environmental conditions of theirworkplace. This industrious team
took to the outdoors, where they
revitalized the site’s neglected patioarea. Their efforts included weedingflowerbeds, removing litter, andplanting new flowers, all of whichsignificantly improved the aesthetics
and functionality of the space.

Total number of employees that wereentitled to parental leave

Total number of employees that returned to work after parental leave
ended that were still employed 12 months after their return to work

2022

2022

25,402

11,217767

Total: 36,619
2023

12,916.5

30,587.5

1,375
Total: 2,142

2023

385

866

Total: 43,5041,2

Total: 1,251

Total number of employees that tookparental leave

Total number of employees that returned
to work in the reporting period afterparental leave ended

2022

2022

1,288

1,631

1,009

Total: 2,919
2023

825

990

2023

435

Total: 1,815

78.3%

98.9%

2022

76.0%

52.7%

99.1%
Total: 78.0%

1	Parental leaves includes both full-time
employees as well as part-time employees.
2	Marelli has operations in Korea where
employees are not entitled to parental leave.

For the latest news, visit our
website: marelli.com
FemaleMale

85.2%
Total: 81.7%

Total: 89.8%
2023

981
Total: 1,416

Retention rate

Return to work rate
2022

1,613
Total: 2,622

2023

38.2%

53.7%
Total: 47.7%

LOOKING AHEAD

To build on our 2023 commitment
to gender equality and related
priorities, in 2024 we will focus
on pay equity and plan tolaunch our “Global Framework
project”, designed to provide
a standardized framework forjob classification, ensuring
clarity, consistency and a fullunderstanding of the purpose ofeach role within our company. In
this way, we will intrinsically support
pay equity, as jobs will be classified
according to the nature and levelof work, regardless of individual
characteristics such as gender.

MARELLI PEOPLE

TRAINING AND DEVELOPMENTMARELLI PEOPLE
Employee Engagement
and Well-Being

51

Prioritizing Employee Well-Being

55

Training and Development

57

Diversity and Inclusion

59

Occupational Health and Safety

62

Labor Relations

64

Social Contribution

66

For the latest news, visit our
website: marelli.com

57

Marelli Sustainability Report 2023

Training is an important way in which we ensure that our employees understand what Marelli
stands for. In the past year, we have undergone a profound culture change, and we are bringing
our people with us with a far-reaching program of training and engagement.
TOTAL HOURS OF TRAINING PER CATEGORY IN 2023

We aim to attract the best andbrightest people to come on thejourney with us and we want tomotivate and develop them, so they
will choose to build their careerswith us. Our culture is increasingly
reflecting our commitment tosustainability. Our stance onsustainability issues, such asenvironmental impact, humanrights, health and safety, andindeed the whole gamut ofsustainability factors, is instilled
in our employees through arigorous and wide-ranging
program of training courses, onthe-job training, engagement andindividual mentoring. These aredelivered at both a global and local
level depending on the topic.

OUR APPROACH

In 2023, we revisited our global
learning initiatives to address theevolving demands of our business.
These programs were rolled
out in concert with the strategic
directions set by our CEO and CHRO,
targeting both newly onboarded andexisting staff. This encompassed allorganizational tiers, from hourly tosalaried employees, and spanned
various business units and functions.
Our comprehensive global training
curriculum tackled various
subjects, including Compliance,
Culture, Leadership, Business
Skills, Technology, and Process.

FemaleMaleGrand Total

Business Ethics and Compliance

325

875

1,200

Cybersecurity and Data Privacy

6,786

17,13723,924

Diversity, Discrimination and Harassment

606

860

1,466

Health and Safety

26,104

116,942

143,046

Human Rights

3,652

11,35015,002

Manufacturing Management System

2,920

13,636

16,555

Others38,726

176,856

215,582

Total

79,120337,656

416,776

Our approach capitalizes upon
the creation and development ofinternal training by Marelli’s own
experts, who have an intimate
knowledge of the company’s
operations. Additionally, we partnerwith external experts to facilitate
pivotal programs in areas such as
leadership, change management,
and soft skills, supplemented byaccess to a vast array of online
e-learning resources.

Total training hours

Hours of training
per employee

10.24

2022

2023

Average training
hours: Executives(Directors and above)

hours/employee

4.4

11.0

Average training
hours: (Manager)

hours/employee

10.7

25.8

Average training
hours: (Salaried)

hours/employee

15.06

8.39

Average training
hours: (Hourly)

hours/employee

5.8

9.3

MARELLI PEOPLE

TRAINING AND DEVELOPMENT CONTINUEDMARELLI PEOPLE
Employee Engagement
and Well-Being

51

Prioritizing Employee Well-Being

55

Training and Development

57

Diversity and Inclusion

59

Occupational Health and Safety

62

Labor Relations

64

Social Contribution

66

RESOURCES FOR LEADERSHIPIn February 2023, we launched“My e-learning library.” This is an
on-demand e-learning platform
offering exciting learning
opportunities on useful topics
relevant to people’s roles. Itfeatures premium content fromsources such as Harvard Business
Publishing, TED, Grovo, and Skills
Hub. Topics include professional
skills, leadership, and management
training, along with technologyrelated subjects such as emerging
technology and IT processes. The
material is available in a range offormats and multiple languages.
At the end of 2023, we conducteda specialized 3-hour training
session for plant managers,
focusing on environmental
issues. The primary subject matter
was Marelli’s Environmental,
Health, and Safety Policy, covering
our commitments concerning
environmental protection,
occupational health and safety,
as well as energy efficiency,
waste and water management.
A comprehensive coverage wasprovided to the 20 participants fromten countries on the implicationsof these commitments, including
actionable items, reporting
mandates, procedural protocols,
and the deployment of relevant tools.

For the latest news, visit our
website: marelli.com

58

Marelli Sustainability Report 2023

The training highlighted theintegral link between these EHS
topics and Marelli’s overarchingsustainability strategy, asserting
the material significance of
these issues to the company’s
responsible business operations
and long-term objectives.

TRAINING FOR CAREER AGILITY
We are keen to promote fromwithin when we can and encourage
employees to change direction if that
supports an individual’s ambitions
and the needs of the business.

For example, following Marelli’s
restructuring in 2022 and 2023,
the business facilitated retraining
and redeployment of employees,
particularly in the research anddevelopment field.

PERFORMANCE AND CAREERDEVELOPMENT REVIEWSThe Marelli Performance Evaluation
Process is a critical exercise aimed
at reinforcing high performancealigned with the company’s values.
Its goals are to facilitate discussions
on goal progress between
employees and managers, identify
obstacles to performance, highlightareas for skills development, andfoster a feedback-rich culture.
It also serves to recognize andcelebrate employee achievements.
In 2023, 60.4% of employees werereceiving regular performanceand career development reviewsfor employee grade (illustrated
to the right).

COMMITMENTS FOR THE FUTURE
In 2024, we will continue on our
employee development path adding
new training initiatives to thosealready imparted in 2023. We areplanning a Plant Learning Strategy
aiming to define a standard
development path covering all
employees in the plants.

Among the trainings planned for2024 are a Business English course,a Compensation & Benefit Essentials
course as well as EHS, energy
management and sustainability
training around new project
launches. We also aim to run thefollowing courses: Finance for NonFinance (Level 2), Problem Solving(Level 2), and Project Life Cycle 2.0.

PERCENTAGE OF EMPLOYEES RECEIVING REGULAR PERFORMANCE AND CAREER DEVELOPMENT REVIEWS
Employee grade

GenderNumber of employees
receiving regular evaluation% of employees receiving
regular evaluation

Executives(Directors
and above)

Male
Female
Total

381
69
450

97.4
100.0
97.8

Managers

Male
Female
Total

2,389
468
2,857

97.2
96.7
97.1

Salaried

Male
Female
Total

6,289
2,245
8,534

86.1
85.0
85.8

HourlyMale
FemaleTotal

10,213
4,279
14,492

49.8
44.0
47.9

Total
employees

MaleFemaleTotal

19,272
7,061
26,333

62.9
54.6
60.4

GLOBAL LEARNING AND DEVELOPMENT PROGRAMS
Leadership Essentials at Marelli(LEM)

Leadership Accelerator Programat Marelli (LEAP)

DDI Pinpoint Platform

This program is for first time
managers, and newly promoted
ones, consisting of four 4-hoursessions over one month. In 2023,
we had 32 participants in twocohorts. In 2024, we aim to reach80 participants over four cohorts.

LEAP is our leadership development
program for middle management.
Eligible participants include Plant
Managers, Plant HR, and Plant
Controllers. Training is delivered
over three months, plus a 12-month
Action Learning Project. In 2023, we
had 32 participants in two cohorts.
In 2024, we are aiming for 80 in fourcohorts covering all the job families.

This platform is our e-learning forleadership, organized through our HR
community. The platform runs for thefull 12 months. In 2023, we approved
35 licenses, up to July 2024. Our 2024
goals are yet to be decided.

MARELLI PEOPLE

DIVERSITY AND INCLUSIONMARELLI PEOPLE
Employee Engagement
and Well-Being

51

Prioritizing Employee Well-Being

55

Training and Development

57

Diversity and Inclusion

59

Occupational Health and Safety

62

Labor Relations

64

Social Contribution

66

For the latest news, visit our
website: marelli.com

59

Marelli Sustainability Report 2023

DATA POINTSAt Marelli, diversity, equity, and inclusion (DE&I) is deeply woven into ourcompany culture, which is integral to operating a responsible businesswhile being key to our success. We channel our global workforce’s diverse
talents and perspectives to achieve solid business outcomes.
Diversity not only strengthens
our teams but is crucial for
maintaining a respectful andinclusive workspace. Following
our commitment to the United
Nations Global Compact (UNGC),
we uphold a strict no-tolerance
policy towards discriminationor harassment, underpinned by
our Code of Conduct. Issues canbe securely reported throughMarelli’s Integrity Hotline.

OUR APPROACH

The global nature of Marelli’s
business, with operations in 24
countries around the world, makes
cultural diversity a particular factor
for us to address. The challenge ofbuilding a corporate culture that
respects local traditions and laws
requires a strong ethos combinedwith flexibility and sensitivity. In 2023,
we undertook a more explicitly global
approach to job evaluation, actively
working to combat discriminationin career advancement and ensurethat our recruitment and promotion
processes are equitable. We focus
on avoiding unconscious bias andinconsistency, using local researchand survey data to evaluate andbenchmark the salaries of theroles we advertise.
We are embedding DE&I in our
culture through a combination oftraining, engagement, and humanresources processes. Inclusivity
is one of Marelli’s attributes andevery employee is evaluated on
this attribute during the annual
performance review process.
The attributes are also an inherent
element in discussions about how
employees can progress theircareer in the company.

Total number of women employed30%
2023 actual

40%2025 target

Total number of female senior leaders (Directors and above)

15%

2023 actual

25%2025 target

PROGRESS IN 2023
WOMEN AT MARELLI

As an engineering-based industry
that has traditionally been maledominated, we know that we are
not going to change our businessovernight, yet we are fully committed
to building a culture in which womencan succeed and thrive. We areaiming to increase the proportionof women employees throughout
the company proposing a targetof 40% by 2025. In 2023, weachieved 30%.

It is also our ambition to increase
the number of women in leadership
positions. In 2020, women accounted
for around 8% of our senior leaders(Directors and above) and this has
increased gradually over the past
several years to 15% in 2023. Our
target for 2025 is to reach 25%
of women in leadership roles.

MARELLI PEOPLE

DIVERSITY AND INCLUSION CONTINUEDMARELLI PEOPLE
Employee Engagement
and Well-Being

51

Prioritizing Employee Well-Being

55

Training and Development

57

Diversity and Inclusion

59

Occupational Health and Safety

62

Labor Relations

64

Social Contribution

66

In 2023, we began introducing
gender-neutral job descriptions,with the intention of encouraging
more women to apply for roles
with Marelli. We hide the gender
information when preparing theoffer letter for newcomers.

CASE STUDYEMPLOYEE RESOURCE GROUPS

Salary alignment

For the latest news, visit our
website: marelli.com

60

Marelli Sustainability Report 2023

In 2023, we identified some of
our operations where gender
played a decisive role in salarydefinition; the prevailing culture
and legal framework poseschallenges to gender equality
in some countries. As part ofour unwavering dedication tofostering a globally inclusive
culture that supports women’s
advancement, we engaged closelywith the local teams and unions.

Our efforts were focused on
ensuring that recruitment
for positions was based on
the role’s requirements andresponsibilities, irrespectiveof the potential candidate’s
gender. This initiative was aboutaligning with our organizational
values and ensuring fair andequitable remuneration forevery employee.

Employee Resource Groups (ERGs)
are bottom-up, employee-driven
groups that are an importantpart of our determination tobuild a diverse workforce thatoffers equal opportunities to all
employees. The first of thesegroups, Marelli Women, waslaunched at the beginning of2022 and in 2023 quickly spreadwide and deep within Marelli.
The ERGs operate on a network
basis, with a responsible person ateach site feeding into the country
champion who in turn consolidates
the input from that country andshares it with the global leader.
It is the ERG’s global leader who
is responsible for implementation.
Following this model, three new
ERGs were launched in 2023:
Rainbow, championing the LGBTQ+
community of employees; Brains& Hearts, which focuses on mental
health; and All Cultures, whichcelebrates the range and diversityof cultures represented at Marelli.

Diversity of governance bodies
Top Management (Directors and above)
Gender

2022

2023

Men

499

391

Women

72

69

Total

571

460

% Men

87.4%

85.0%

% Women

12.6%

15.0%

% Total

100%

100%

Diversity of governance bodies – other employee grades (2023)
Men
Employee grade

Women

<30

Men

Women

30–50

Men

Women

>50

Managers

5

2

1,470

375

982

107

Salaried

964

478

4,740

1,822

1,597

342

Hourly

4,024

1,909

11,973

5,668

4,517

2,151

Men

Women

Men

Women

Men

Women

2022

<30

Managers

30–50

>50

27

7

1,874

474

1,146

104

Salaried

1,881

1,017

5,851

2,417

1,705

349

Hourly

5,224

2,364

13,243

6,211

3,991

1,911

MARELLI PEOPLE

61

Marelli Sustainability Report 2023

DIVERSITY AND INCLUSION CONTINUEDMARELLI PEOPLE
Employee Engagement
and Well-Being

51

Prioritizing Employee Well-Being

55

Training and Development

57

Diversity and Inclusion

59

Occupational Health and Safety

62

Labor Relations

64

Social Contribution

66

COMMITMENTS FOR
THE FUTURE

As a global company, we face thecomplex task of nurturing a universal
culture while respecting regional
differences. Our commitment is tofoster diversity, inclusivity, and equal
opportunity, yet we also prioritize
honoring local norms and customs.
Heading into 2024, we will refine
our Human Rights Policy to better
serve vulnerable populations
such as migrants, refugees,
and people with disabilities.

To enforce the culture of inclusivity
we will involve all of our employees
in global training programs onhuman rights, discrimination,harassment and the ethicalprinciples of our Code of Conduct.
Our dedication to being a diverse andinclusive organization is unwavering,
and we’re tackling these challenges
systematically and resolutely.

EMPLOYEES BELONGING TO VULNER ABLE GROUPS AND/OR MINORITY GROUPS(E.G. EMPLOYEES WITH DISABILITIES)
Number (headcount)

Management

For the latest news, visit our
website: marelli.com

2022

2023

14

11

Salaried68

53

Hourly

321

323

Total

403

387

MARELLI PEOPLE

OCCUPATIONAL HEALTH AND SAFETY

MARELLI PEOPLE
Employee Engagement
and Well-Being

51

Prioritizing Employee Well-Being

55

Training and Development

57

Diversity and Inclusion

59

Occupational Health and Safety

62

Labor Relations

64

Social Contribution

66

For the latest news, visit our
website: marelli.com

62

Marelli Sustainability Report 2023

At Marelli, we are devoted to ensuring the utmost standards of occupational
health and safety within our operations and through our business
relationships. Recognizing the intrinsic link between employee well-being
and human rights, we have instigated rigorous procedures to prevent andmitigate any significant negative impacts on health and safety.
OUR APPROACH

Our approach to Occupational
Health and Safety centers on
the proactive identification andmanagement of hazards and risks
that could arise from our operations,products, or services. For instance,
within our operations since 2021,
we introduced new measures andprocedures to prevent injuries
resulting from the unexpected
activation of machinery or release ofhazardous energies. 2023 was a year
free of fatalities in our workforce.
We also invest in extensive hoursof health and safety training andawareness raising, to ensure ourpeople are as knowledgeable andwell prepared as possible to avoid
any threat to their health and safety
in the course of their work.
Our commitment to ensuring
the highest standard oforganizational health andsafety extends to our networkof business relationships,
including suppliers, contractors,
and partners. We require
adherence to strict health andsafety protocols, reflecting highinternational standards andthe guidelines enshrined in
our EHS Policy.

You can read more about ourrequirements for suppliers in the“sustainability in our supply chain”
section of this report, on page 47.
With hierarchy of control measures,
we aim to eliminate risks at thesource, substituting less hazardous
processes wherever possible, andengineering controls to mitigate
risks. Through these steps, at Marelli
we enforce a culture of prevention
and maintain the highest level ofvigilance in all business interactions
to protect the health and safetyof all stakeholders affected by ourbusiness dealings. Our aim is toensure these parties’ health andsafety expectations are met or
exceeded, thereby maintaining highstandards for all associated with its
operations.

PROGRESS IN 2023
DIGITAL TOOL TO TR ACK AND
MANAGE OH&S INCIDENTS

All of our sites are required toreport injury data to management
through our EHS and energy digital
data collection platform. As well as
reviewing our safety practices,to do more we launched a newtool in 2023 which will digitize our
injury analysis. The main goal of
the tool is to promote a standard
approach to injury analysis, andimplementation is still ongoing. The
rollout, when complete, will ensure
better local management and clear
oversight of all safety incidents

throughout the business. We will
use the tool to track and analyze
accidents, injuries and near misses
at every one of our sites, allowing us
to track the progress of any incident
investigation from the point at
which it was reported until the caseis closed on the system. To avoid
recurrence, safety incidents are notclosed until the digital system has
both verified and confirmed thecompletion of identified measures.
The tool also helps us plan to rollout those measures at other sites
where similar hazards exist.

MARELLI PEOPLE

OCCUPATIONAL HEALTH AND SAFETY CONTINUEDMARELLI PEOPLE
Employee Engagement
and Well-Being

51

Prioritizing Employee Well-Being

55

Training and Development

57

Diversity and Inclusion

59

Occupational Health and Safety

62

Labor Relations

64

Social Contribution

66

OH&S TR AINING PROGR AM

Rigorous and extensive healthand safety training programs
are managed at a site level inaccordance with local regulation andspecific local risk assessments. We
also provide awareness training toensure that employees understandthe nature of the potential dangers
they face and the best way toprevent accidents.

WORK-RELATED ILL-HEALTH

We also track and report
occupational illnesses among ourworkforce to make sure that wehave a clear picture of any trends
relating to industrial illnesses suchas hearing loss. We have voluntarilyaligned with the ISO 45001 Health& Safety management standard.
In 2023, we have already achieved
our 2025 goal to certify 90% of
our production sites. Thanks
primarily to the enthusiastic andspeedy response from the sites
to the request to begin the selfassessment process, we were able
to cover the workplaces of morethan 45,000 workers1 with ISO 45001
certification. In 2023, our sites
went through 126 external and 543
internal health and safety audits2.

For the latest news, visit our
website: marelli.com

63

Marelli Sustainability Report 2023

97%

of our production sites
certified under ISO 45001
by 2025

PROJECT TO ELIMINATE
CMR SUBSTANCES

As part of our innovation strategy,
and in line with our updated
material topics, toxic emissions
is a key focus at Marelli, and
we also aim to eliminate toxic
substances from our products
wherever possible. In 2022, we
initiated a global project designed
to reduce and eventually eliminate
carcinogenic, mutagenic or
reprotoxic (CMR) substances fromour production. These highly
concerning chemicals are used inmany industries including ours
and we are determined to remove
them altogether from our supply
chain. This is a complex and multidimensional project that brings
together many functions of thebusiness in all geographic regions.
1	Marelli defines workers to include
employees, agency workers and contractors.
2	Currently, non-occupational medical andhealthcare services are offered by Marelli
only in countries where it is negotiatedthrough collective bargaining agreements.

91%

of our production sites
certified under ISO 45001
in 2023

In 2022, the team establisheda dedicated workflow to ensure
CMR substances are not present
in any new products. Building on
this initial work, in 2023 our EHS
team turned its attention to begin
forming guidelines that can help
us manage CMR substances witha common approach across all
countries, even among jurisdictions
with higher levels of worker
protection.

COMMITMENTS FOR
THE FUTURE

Our current OH&S data covers all
our manufacturing sites and testing
centers; in 2024, we will startthe data collection of remaining
offices and R&D centers to
onboard all sites on the same
metrics and prevention measures.
We will continue to monitor andcommunicate all new OH&S legal
requirements and other relevant
requirements across the company
in line with our OH&S procedure.

143,046
hours of training for
OH&S in 2023

543
internal audits

Health and safety audits
in 2023

126

external audits

MARELLI PEOPLELABOR RELATIONSMARELLI PEOPLE
Employee Engagement
and Well-Being

51

Prioritizing Employee Well-Being

55

Training and Development

57

Diversity and Inclusion

59

Occupational Health and Safety

62

Labor Relations

64

Social Contribution

66

For the latest news, visit our
website: marelli.com

64

Marelli Sustainability Report 2023

The year 2022 was a tough year for many businesses, including ours, and during2023 the automotive industry continued to face market instability and drops involumes. Market conditions as well as global economic challenges meant it wasvital that we restructure the business in a way that would put us in the best
shape to make the most of the opportunities the market presented.
OUR APPROACH

We are committed to guaranteeing
fair labor conditions for all
our employees and fostering
constructive relationships withtrade unions and other employee
bodies through open dialogue
and engagement. In order to build
a streamlined, fit-for-purpose
company, we have had to takedifficult decisions that led to a
reduced workforce. We did ourbest to treat everyone fairly andwith respect. We are now a stable,
thriving business and are working
hard to support our 43,585
employees so they can share in
Marelli’s success.

PROGRESS IN 2023
FIT FOR THE FUTURE

In 2023, we undertook athorough organizational analysis
of our business. The resulting
restructuring program focusedon increasing efficiency andoptimizing our resources,
decentralizing our structure as
much as possible. This led to Marelli
starting a process to close six plants
across Germany, Italy and Francein September 2023. We consulted
widely with unions and other
employee representative bodies
to ensure we minimized social andeconomic impacts and, in most cases,
we came to agreements to achieve
our headcount reduction throughonly voluntary arrangements. In
some countries this is mandatedby law, but we did so in manyother countries where that is not
the case. We employed a rangeof measures, including theredeployment of employees to newroles or locations, early retirement
arrangements and outplacement
support. In this way, we reduced
headcount by around 5,000 in 2023
without any major disputes or
disruption to our business.

COLLECTIVE BARGAINING

In the second half of 2023, despite
being in the throes of the second
phase of our restructuring, we wereable to renew our most importantcollective bargaining agreementin Europe. Salary negotiations
have been successfully carried out
also in Mexico and Brazil. We kept
pay increases in line with inflation
and within budget while avoiding
conflict or strikes. We also introduceda range of flexible benefits that are
helping us to remain an attractive
employer and, in many cases, toreduce employee turnover.
Read more about ourapproach to benefits
see page 53

EUROPEAN WORKS COUNCIL

In 2023, Marelli agreed to theformation of a European Works
Council (EWC). This is a body that
represents employees throughout
Europe; it meets at least twice ayear, more if warranted. The firstmeeting will be held in first half 2024.
The Council must be informed andconsulted by Marelli’s management
about significant decisions ontransnational matters made at a
European level that could affect
employment or working conditions
as per the agreement signed in
January 2023. We hope that the EWC
may offer us the opportunity to
discuss sustainability in a European
context.
The EWC is a body that facilitates
the information and consultationof employees with a focus ontransnational issues. It is not anegotiating body and does not havethe right of veto over decisions,however we are happy to informand consult with them, as we are
required to do so by EU Directive.
We took the decision to include our
UK-based operations in the EWC.

78%

employees covered by collective
bargaining agreements at theend of 2023

28

Number of members of theEuropean Works Council

MARELLI PEOPLE

65

Marelli Sustainability Report 2023

LABOR RELATIONS CONTINUEDMARELLI PEOPLE
Employee Engagement
and Well-Being

51

Prioritizing Employee Well-Being

55

Training and Development

57

Diversity and Inclusion

59

Occupational Health and Safety

62

Labor Relations

64

Social Contribution

66

MINIMUM NOTICE PERIODSREGARDING OPER ATIONALCHANGES
Minimum number of weeks’notice provided to employees
and their representatives prior to
the implementation of significant
operational changes that could
substantially affect them varies
from country to country.1

In countries where collective
bargaining agreements (CBAs)
are in place, these agreements
define specific notice periods
and consultation requirements
for Marelli. When not governedby CBAs, local legislation
tends to dictate the minimum
notice period requirements for
operational changes.2

SA8000 CERTIFICATIONAs a business, we want to berecognized as a decent, fair
employer.

For the latest news, visit our
website: marelli.com

CASE STUDYThe SA8000 standard is theworld’s leading social certification
program. It provides a frameworkto certify that an organization
conducts its business in a waythat is fair and decent for workers
and demonstrates its adherence
to the highest social standards.
It covers labor conditions, humanrights, and health and safetyissues. The first step towards
this certification is to complete
a self-assessment. We received
completed responses within twomonths after sending a request
to all of our active production
sites, covering 125 plants.

The initial self-assessment
returns showed that we had no
significant concerns in humanrights topics such as child labor,
forced or compulsory labor,
freedom of association andright to collective bargaining,
discrimination, remuneration,and disciplinary practices.
However, it has identified someareas for improvement related
to working conditions andhealth and safety but overall,
the response was very positive.

1	Our country specific requirements are thefollowing: Within the EU Directive 2001/23/
EC, notice must be given “reasonably inadvance” of a transfer due to merger orlegal transfer. In the UK, employees should
be given notice in advance about a TUPE
transfer, but there is no statutory notice
period since the contract is not ending. In theUS, the WARN Act requires at least 60 days’
notice for certain job losses. In Mexico, there
is no explicit notice period, however in thecase of plant closures, authorities must be
notified prior to the closure or request for
termination of collective relations. In Brazil,
there is no specific deadline, but the noticemust be reasonable. In China, changes mustbe filed and approved by the Labor Bureau
30 days prior to any notifications or actions.
In India, a 21-day notice period is required
before implementing any change. For Italy,
a minimum notice period ranging from 20 to
25 days is required depending on the natureof the transfer. In France, a three-monthnotice period is required when restructuring
involves a social plan.

2	In relation to collective bargaining thefollowing are some examples of CBAs
defining the necessary procedures for
significant operational changes in somecountries where Marelli operates:– In Japan, the collective bargaining
agreements applied in Marelli companies
require the company and the union toreach an agreement on the transfer of thecompany and on post-transfer working
conditions before communicating thetransfer of business to the employees.
– In Malaysia, the collective bargaining
agreement applicable to Marelli specifies
that either party may serve on theother three months’ written notice tonegotiate on new terms and conditions of
employment and other related matters.
– In the United States, at unionized sites,
the notice periods and consultation
procedures with trade unions arenormally defined by the Collective Labor
Agreements (CLA) signed between thecompany and the trade union and areapplicable at the plant level.
– In Korea, the collective bargaining
agreement applied to Marelli contains
provisions for prior consultation with thetrade unions regarding the plan fortransfer/merger.

MARELLI PEOPLE

SOCIAL CONTRIBUTIONMARELLI PEOPLE
Employee Engagement
and Well-Being

51

Prioritizing Employee Well-Being

55

Training and Development

57

Diversity and Inclusion

59

Occupational Health and Safety

62

Labor Relations

64

Social Contribution

66

For the latest news, visit our
website: marelli.com

66

Marelli Sustainability Report 2023

Social contribution by companies such as Marelli is addressing not only economic
aspects but also social, cultural, and environmental dimensions for sustainable
development. By contributing to social causes, we can create a virtuous circle ofsocial sustainability in areas that need it the most.
OUR APPROACH

As a responsible corporate citizen,
Marelli is committed to being part ofthe communities where we operate
and making a positive contribution
to them. Our employees live andwork in those communities andwe want them to be proud tobe part of Marelli and the role
we play in their neighborhood.
We actively participate in CSR
projects that prioritize education,
skill development, and disaster
response initiatives. These
include The Marelli Society, ourschool engagement program, ourapprenticeship programs, and our
support of events that champion
women’s rights and equity.

PROGRESS IN 2023
Below is a selection of some of ourcommunity-related work in 2023:

WORLDWIDE: MARELLISUPPORTING FAMILIESTHROUGH DISASTERS

Donations from over 500 Marelli
colleagues, supplemented by thecompany, donated enough money
in March 2023 to feed over 1,000
families of five for a month. The
donations went directly to theInternational Committee of the
Red Cross, supporting people inurgent need.

MEXICO: THE
MARELLI SOCIETY

The Marelli Society, a group
initiated by Toluca, Mexico’s HR
and administrative staff, focuseson supporting those in need via
community outreach. With 30
members actively participating since
its formation in February 2023, thesociety has visited and provided
gifts to seniors at CATAM, a local
retirement home. More recently,
they extended their generosity to
Casa Hogar Alegria, supportingnearly 100 underprivileged girls withdonations and time. Samuel Garduno
highlighted the joy and hope derived
from the staff’s selfless contributions
to these efforts.

UK: FOSTERING FUTURE TALENT
We are committed to fostering
future talent with local school
engagement programs. At Marelli
North-East (UK), we engaged withlocal school students, providing
week-long work experience
programs at their facilities to offer
insights into various careers. Thisinitiative helps shape students’career choices and allows
Marelli staff to mentor the next
generation of talent.

INDIA: BRINGING INDUSTRY
AND ACADEMIA TOGETHER

Marelli India has formed apartnership with the highly regarded
National Institute of Technology
in Karnataka (NITK) in the state of
Karnataka in India. The partnershipprovides an upskilling program thatmakes students industry-ready.

BR AZIL: INCREASING
APPRENTICESHIPS

Following Brazilian Law 10,097/2000,
Marelli has implemented a robust
apprenticeship program for young
individuals aged 14–24, ensuring
a blend of theoretical and handson training that adheres to legal
work conditions. In 2023, thenumber of contracts counted acrossvarious company business units
was 162. This work aligned with
Marelli’s commitment to nurturing
future talent while upholding ourorganizational values and culture.

ITALY: R AISING AWARENESSABOUT DOMESTIC VIOLENCE

Marelli honored the International
Day for the Elimination of Violenceagainst Women on 25 November
with various initiatives across their
Italian sites aimed at combating
domestic and gender-based
violence. Collaborating with HR, theMarelli Women Network, and local
partners, these activities represent
Marelli’s ongoing commitment to
upholding women’s dignity.

MARELLI PEOPLE

SOCIAL CONTRIBUTION CONTINUEDMARELLI PEOPLE
Employee Engagement
and Well-Being

51

Prioritizing Employee Well-Being

55

Training and Development

57

Diversity and Inclusion

59

Occupational Health and Safety

62

Labor Relations

64

Social Contribution

66

CASE STUDYCASE STUDY

Project Gurugram

Don Bosco Technical Institute,
Solar Panels

Project Gurugram was started
by Marelli India following the
PPP (Public Private Partnership)
approach. We partnered with
SEEDS (Sustainable Environment
and Ecological Development
Society) and GMDA (Gurugram
Metropolitan Development
Authority) for lake rejuvenationin Jharsa Village, Gurugram,
restoring its biodiversity.
For the latest news, visit our
website: marelli.com

67

Marelli Sustainability Report 2023

The program aims to help develop
the overall flora and fauna aroundthe lake, helping to improvebiodiversity. The specific objectivesof the program are to:– Promote public spaces androutes that are attractive, safe,
uncluttered, and work effectively
for all in society, including
disabled and elderly people– Improve biodiversity– Increase knowledge andcommitment in the community
towards environment– Promote actions to actively
support nature conservation

As part of our CSR program, we
inaugurated an important renewableenergy project in India, comprising the
installation of solar panels at the Don
Bosco Technical Institute, a placementdriven and skills training institute in
New Delhi.
This 100kW hybrid solar plant will
provide electricity to the entire building,
reducing energy consumption by 90%.
The project is Marelli India’s latest CSR
initiative focusing on environmental
issues and reinforcing our support
to the Don Bosco Technical Institute,
started in 2016.

MARELLI APPENDI X

MARELLI APPENDIX
About This Report

69

Conclusions

69

Board of Directors

70

Material topics

70

GRI

71

Independent practitioner’s
assurance report

100

68

Marelli Sustainability Report 2023

05 MARELLI APPENDIX

Independent practitioner’s
assurance report on Marelli’s
Greenhouse Gas (GHG) Statement 102

For the latest news, visit our
website: marelli.com

About This Report

69

Conclusions

69

Board of Directors

70

Material topics

70

GRI

71

Independent practitioner’s
assurance report

100

Independent practitioner’s assurance
report on Marelli’s Greenhouse Gas (GHG)
Statement

102

MARELLI APPENDI X

ABOUT THIS REPORTMARELLI APPENDIX
About This Report

69

Conclusions

69

Board of Directors

70

Material topics

70

GRI

71

Independent practitioner’s
assurance report

100

Independent practitioner’s
assurance report on Marelli’s
Greenhouse Gas (GHG) Statement 102

REPORTING PERIODAND SCOPE

This document is the fourth editionof the Marelli Sustainability Report(“this report”). This report covers
the period from January 1, 2023, toDecember 31, 2023 (the “reporting
period”). It captures Marelli’s
sustainability achievements in thereporting period.

REPORTING BOUNDARY:

1.	Environment: The environmental
data is presented for 111 sites.
This excludes all on-site customer
premises, third-party warehouses
and non-manufacturing sites.
On-site customer premises havebeen excluded because theOEM does not provide individualenergy data for our sites; instead,costs are divided based on therules of each site.
2.	Safety: Safety data covers 167
sites, which include sites where
Marelli has control over theemployees. This may involve
on-site customer plants or
joint ventures as defined bycontractual agreements.

CONCLUSIONS
3.	HR: The HR-related data
encompasses 197 locations, split
into 370 units. This data includes
instances where the same site
is divided into multiple units,
as employees may be assigned
to different business units
and functions within the samebuilding. For instance, there
are cases where a single plant
address is divided into different
areas for HR allocation purposes.
All data in this report refer to sites inoperation during 2023.
Marelli has disclosed theinformation in the 2023
Sustainability Report inaccordance with the Universal
GRI Standards 2021.

FORWARD-LOOKING
STATEMENTS

This report contains forwardlooking statements considered
relevant and in progress
during the elaboration of the
document Q1/2024. Please beaware that actual results may
differ due to various factors.
Publication Date: May 2024.
For further information,
contact us at
sustainability@marelli.com

For the latest news, visit our
website: marelli.com

69

Marelli Sustainability Report 2023

In the past year, Marelli’s
sustainability strategy has gained
substantial momentum byexceeding ten of our predefinedgoals and achieving recognition
with a Gold Medal from Ecovadis,
placing us in the top 5% of assessedcompanies. Preparing to fulfill ourambitious 2025 targets, we have also
committed to major international
initiatives, including the UN Global
Compact and the Science Based
Targets initiative. Our roadmap
includes decarbonizing operations
by 2030 and influencing our supply
chain to do the same by 2045.
In 2023, Marelli achieved a 5.8%
reduction in energy intensity fromits 2021 baseline, aiming for a
10% reduction by 2025. We also
demonstrated our commitment tosustainability by tying a portion of
the short-term incentive payout toover 3,000 employees to achieve
our energy efficiency target. Thisaccounted for 5% of bonuses andwill increase to 10% to include
emissions reductions in 2024.

In 2024, we will strive to exceed
our ambitious targets and become
an industry leader in sustainability.
Marelli is committed to integrating
comprehensive supplier ESG due
diligence with AI-powered risk
mapping and targeted audits,
and by expanding its operations
to minimize waste and increase
recycling, particularly tacklingpackaging waste with suppliers in
China. The company plans to amplify
water usage reductions by setting
a new target of a 25% reduction
against the 2021 baseline by 2025.
Marelli is moving forward with astrong commitment, combining
sustainability and innovation toredefine our contribution to theautomotive industry. By embedding
ESG accountability into every aspectof our operations, we’re building afuture where caring for the planet
and people helps us to thrive in achanging world.

MARELLI APPENDI X

70

Marelli Sustainability Report 2023

BOARD OF DIRECTORSMARELLI APPENDIX

MATERIAL TOPICS

About This Report69

Material topic

Description

Conclusions

69

Alignment with ESG standards/regulations

Board of Directors

70

Climate change& action/energy
management

Material topics

70

GRI

71

Sustainability inthe supply chain

Sustainable impact of our logistics and supply chain

Independent practitioner’s
assurance report

100

Materials
sourcing

Limit the use of critical materials, secure their sourcing, and develop alternatives to protectfrom supply disruptions and volatile input prices

Governance& compliance

Evaluates the impact companies’ corporate governance and business ethics practices
have on all stakeholders. The governance encompasses: Ownership & Control, Board, Pay,
Accounting, Business Ethics, and Tax Transparency

Labor
relations

The relationship between management and labor, the strength of worker protections

Waste
management

Improve operational efficiency by decreasing waste generation and increasing reuse
and recycling

Product safety& quality

Through effective management of product safety, auto parts companies can enhance theirreputation and drive higher sales over the long term

Occupational
H&S

Committed to establishing, maintaining and promoting a healthy and safe work
environment for the protection of all workers

Circulareconomy design

Auto parts manufacturers can design their parts to be easily recyclable and reusable andcan apply modularity principles to product design

Diversityand inclusion

Encourage, promote and respect diverse perspectives and cultures across our business,in order to bring fresh thinking and give Marelli a competitive edge

Respect forhuman rights

Respect and support fundamental international principles concerning human rights,
not only for our employees, but also in our supply chain

Water
conservation

The water intensity of operations, the water stress in areas of operation and efforts tomanage water-related risks and opportunities

Data
responsibility

Manage data responsibly, which includes mitigating cybersecurity risks, promoting
a culture of cyber awareness, and handling personal or sensitive data responsibly

Socialcontribution

Contribute to the development of the local society by creating wealth and providing
expertise, skills, and technology, etc. for sustainable development of both our company
and the local community

Employeeengagement

Have a strategy in place for fostering a diverse and highly engaged workforce

Competitive
behavior

As a leading producer of auto parts, ensuring business conduct does not create antitrust
concerns and avoiding penalties that may have an acute impact on the company’s balance
sheet and reputation

Biodiversity

The potential impact of operations on biodiversity in areas of operation and efforts tomanage the environmental impact of operations

Toxic emissions

The potential environmental contamination and toxic or carcinogenic emissions arisingfrom operations

Independent practitioner’s
assurance report on Marelli’s
Greenhouse Gas (GHG) Statement 102

DINESH PALIWALDAVID SLUMP

Executive Chairman,
President & CEO,
Chairman of the
Marelli
Nomination, Governanceand Human CapitalCommittee

HISAO IIJIMAKAREN SNOWBIN HWEE QUEK

DR. PUNITAKUMAR SINHAHIROFUMIHIRANOSEICHII KAKIZAWA
Chair of the Audit
Committee

For the latest news, visit our
website: marelli.com

DR. SHELLENE
SANTANA
Audit and Risk Committee

NOBORUYAMAMOTO
Nomination, Governance and Human Capital Committee

Measure its greenhouse gas emissions and develop and implement business-relevant
decarbonization plans

MARELLI APPENDI X

GRIMARELLI APPENDIX
About This Report

69

Conclusions

69

Board of Directors

70

Material topics

70

GRI

71

Disclosure 2-2

Independent practitioner’s
assurance report

100

Disclosure 2-3

Independent practitioner’s
assurance report on Marelli’s
Greenhouse Gas (GHG) Statement 102

GRI INDICATORDISCLOSURESGRI 2: GENERAL DISCLOSURES 2021
THE ORGANIZATION AND ITS REPORTING PRACTICES
Disclosure 2-1
Organizational details

Disclosure 2-4

Entities included in the organization’ssustainability reporting
Reporting period, frequency
and contact point
Restatements of information

Disclosure 2-5

External assurance

ACTIVITIES AND WORKERS
Disclosure 2-6
Disclosure 2-7

For the latest news, visit our
website: marelli.com

71

Marelli Sustainability Report 2023

Activities, value chain and otherbusiness relationships
Employees

LOCATION IN REPORT

Chapter: Introduction – Paragraph: Marelli is a strong, independent technology partner to OEM’s worldwide.
See page 03
Chapter: Marelli People – Paragraph: About this report
See page 70
Chapter: Marelli People – Paragraph: About this report
See page 70
Chapter: Marelli People – Paragraph: About this report
See page 70
Chapter: Marelli People – Paragraph: About this report
See page 69
Chapter: Introduction, Stakeholder engagement
See pages 03, 14, 15
Chapter: Marelli People – Paragraph: Employee Engagement and Well-being, Labor Relations
See pages 52 and 66

Total number of employees (directly employed by Marelli)– of which women1

Unit of measurement
number (headcount)number (headcount)

Scope
Group
Group

2022
50,36814,9262023
43,585
12,922.5– of which men1
– of which undefined “other”

number (headcount)number (headcount)

35,441
1

30,662.5–

Number of permanent employees– of which women1– of which men1
– of which undefined “other”

number (headcount)number (headcount)number (headcount)number (headcount)

48,355
14,15534,1991

42,124
12,408.5
29,715.5–– of which South America (SA)– of which North America (NA)– of which EMEA
– of which India– of which ASEAN– of which China

number (headcount)number (headcount)number (headcount)number (headcount)number (headcount)number (headcount)Groupcompanies/countries forwhich gender information
is not available
Group
Group
Group
companies/countries forwhich gender information
is not available
companies of the region
companies of the region
companies of the region
companies of the region
companies of the region
companies of the region

4,655
12,937
18,120
920
6,186
5,537

4,705
11,324
16,328
822
4,840
4,105

1 UK employees who work 50% of standard hours are reported as 0.5 headcount.

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Marelli Sustainability Report 2023

GRI

MARELLI APPENDIX
About This Report69

GRI INDICATORDISCLOSURESLOCATION IN REPORT

Conclusions

69

Employees

Board of Directors

70

Disclosure 2-7
continued

Chapter: Marelli People – Paragraph: Employee Engagement and Well-being, Labor Relations
See pages 52 and 66

Material topics

70

GRI

71

Independent practitioner’s
assurance report

100

Independent practitioner’s
assurance report on Marelli’s
Greenhouse Gas (GHG) Statement 102

For the latest news, visit our
website: marelli.com

Number of temporary employees– of which women– of which men– of which South America (SA)– of which North America (NA)– of which EMEA
– of which India– of which ASEAN– of which China
Number of full-time employees– of which women– of which men
Number of part-time employees– of which women– of which men
Disclosure 2-81

Workers who are not employees

Unit of measurement

Scope

number (headcount)number (headcount)number (headcount)number (headcount)number (headcount)number (headcount)number (headcount)number (headcount)number (headcount)number (headcount)number (headcount)number (headcount)number (headcount)number (headcount)number (headcount)

Group
Group
Group
companies of the region
companies of the region
companies of the region
companies of the region
companies of the region
companies of the region
Group
Group
Group
Group
Group
Group

Chapter: Marelli People – Paragraph: Labor Relations
See page 66
Unit of measurement
number (headcount)

Scope
Total number of workers who are not employees and whose work is controlledGroupby the organization
GOVERNANCE
Disclosure 2-9Governance structure and composition Chapter: Responsible Corporate Citizen Sub-chapter: Sustainability GovernanceSee page 42
Disclosure 2-10
Nomination and selection of the
Chapter: Responsible Corporate Citizen Sub-chapter: Sustainability Governancehighest governance bodySee page 42
Disclosure 2-11
Chair of the highest governance body Chapter: Responsible Corporate Citizen Sub-chapter: Sustainability GovernanceSee page 42
Disclosure 2-12
Role of the highest governance body
Chapter: Responsible Corporate Citizen Sub-chapter: Sustainability Governancein overseeing the management
See page 42
of impacts

1 Agency workers and Contractors.

2022

2023

2,013
771
1,242
300
378
729
–
606
–
49,981
14,62835,353
386
298
88

1,461
514
947
69
195
709
–
488
–
43,22912,64630,583
356
276.5
79.5

2022
4,855

2023
5,134

MARELLI APPENDI X

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Marelli Sustainability Report 2023

GRI

MARELLI APPENDIX
About This Report69

GRI INDICATORDISCLOSURES

Conclusions

69

Disclosure 2-13

Board of Directors

70

Material topics

70

GRI

71

Independent practitioner’s
assurance report

100

Delegation of responsibility for
Chapter: Responsible Corporate Citizen Sub-chapter: Sustainability Governancemanaging impacts
See page 42
Role of the highest governance body in Chapter: Responsible Corporate Citizen Sub-chapter: Sustainability Governancesustainability reporting
See page 42
Conflicts of interest
Chapter: Responsible Corporate Citizen Sub-chapter: Respect for Human Rights
See pages 43 and 45
Communication of critical concerns
Chapter: Responsible Corporate Citizen Sub-chapter: Sustainability GovernanceSee page 42
Collective knowledge of the highest
Chapter: Responsible Corporate Citizen Sub-chapter: Sustainability Governancegovernance bodySee page 42
Evaluation of the performance of the
Chapter: Responsible Corporate Citizen Sub-chapter: Sustainability Governancehighest governance bodySee page 42
Remuneration policies
Chapter: Responsible Corporate Citizen Sub-chapter: Employee Engagement and Well-being –Paragraph: Employee Remuneration
See page 54
Process to determine remuneration
Chapter: Responsible Corporate Citizen Sub-chapter: Employee Engagement and Well-being –Paragraph: Employee Remuneration
See page 54

Independent practitioner’s
assurance report on Marelli’s
Greenhouse Gas (GHG) Statement 102

Disclosure 2-14
Disclosure 2-15
Disclosure 2-16
Disclosure 2-17
Disclosure 2-18
Disclosure 2-19
Disclosure 2-20
STRATEGY, POLICIES AND PRACTICES
Disclosure 2-21
Disclosure 2-22
Disclosure 2-23
Disclosure 2-24
Disclosure 2-25
Disclosure 2-26

For the latest news, visit our
website: marelli.com

Disclosure 2-27
Disclosure 2-28

Annual total compensation ratio

LOCATION IN REPORT

Chapter: Responsible Corporate Citizen Sub-chapter: Employee Engagement and Well-being
Paragraph: Employee Remuneration
See page 54
Statement on sustainable development Chapter: Introduction – Paragraph: Sustainability Strategy
strategy
See page 11
Policy commitments
Chapter: Responsible Corporate Citizen Sub-chapter: Respect for Human Rights
See page 43
Embedding policy commitments
Chapter: Environmental Management, Responsible Corporate Citizen Sub-chapter: Water Conservation,
Respect for Human Rights, Data Responsibility and Cybersecurity – Paragraph: Our Water Policy
See pages 36 and 43–47
Processes to remediate negative
Chapter: Responsible Corporate Citizen Sub-chapter: Sustainability in the Supply Chain
impacts
See page 49
Mechanisms for seeking advice andChapter: Responsible Corporate Citizen Sub-chapter: Respect for Human Rights –raising concerns
Paragraph: Whistleblowing Hotline
See pages 44–45
Compliance with laws and regulations Chapter: Responsible Corporate Citizen Sub-chapter: Respect for Human Rights
See pages 43–45
Membership associations
Chapter: Stakeholder Engagement – Paragraph: Marelli collaborations
See page 15

MARELLI APPENDI X

74

Marelli Sustainability Report 2023

GRI

MARELLI APPENDIX
About This Report

69

Conclusions

69

Board of Directors

DISCLOSURESLOCATION IN REPORT70

GRI INDICATORSTAKEHOLDER ENGAGEMENT
Disclosure 2-29

Approach to stakeholder engagement

Material topics

70
71

Disclosure 2-30

Collective bargaining agreements

GRI
Independent practitioner’s
assurance report

100

Chapter: Stakeholder Engagement – Paragraph: Marelli collaborations
See page 14
Chapter: Marelli People Sub-chapter: Labor Relations – Paragraph: Collective Bargaining
See page 66
Unit of measurement
Scope
NumberGroup

Number of total employees covered by collective bargaining agreements1

2022
38,9762023
33,748

Independent practitioner’s
assurance report on Marelli’s
Greenhouse Gas (GHG) Statement 102

For the latest news, visit our
website: marelli.com

1 As of December 31, 2023, collective bargaining agreements covered 78.1% of Marelli employees (survey conducted on 99.1% of Marelli’s global headcount). Of the employees not covered by such agreements, almost all benefit from conditions that are supplemental to,or better than the minimum requirements by law.

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Marelli Sustainability Report 2023

GRI – MATERIAL TOPICS – COMPETITIVE BEHAVIORMARELLI APPENDIX
About This Report

69

Conclusions

69

Board of Directors

DISCLOSURESLOCATION IN REPORT70

GRI INDICATOR
GRI 3: MATERIAL TOPICS 2021
Disclosure 3-1

Process to determine material topics

Material topics

70
71

Disclosure 3-2

List of material topics

GRI
Independent practitioner’s
assurance reportManagement of material topics

100

GRI 3: Material topics 2021
Disclosure 3-3
GRI 205: Anti-corruption 2016
Disclosure 205-11

Chapter: Introduction Sub-chapter: Materiality Assessment
See page 13
Chapter: Introduction Sub-chapter: Materiality Assessment
See page 13
Chapter: Responsible Corporate Citizen Sub-chapter: Sustainability in the Supply Chain
See pages 48–50

Independent practitioner’s
assurance report on Marelli’s
Greenhouse Gas (GHG) Statement 102

Operations assessed for risks related
to corruption

Operations assessed for risks related to corruption2
Total of operations
Percentage of operations assessed for risks related to corruption
Significant risks related to corruption identified through the risk assessment
Disclosure 205-21
Communication and training aboutanti‑corruption policies and proceduresof which are Executives3of which are Managersof which are Employeesof which are Workers
Disclosure 205-31

For the latest news, visit our
website: marelli.com

Confirmed incidents of corruption
and actions taken

Total number of proven corruption incidents
Nature of confirmed incidents of corruption
Total number of proven corruption incidents in which employees have been dismissedor have been the subject of bribery measures
Total number of proven corruption incidents for which contracts with business partners
have been resolved or have not been renewed due to corruption-related violations

Chapter: Responsible Corporate Citizen Sub-chapter: Respect for Human Rights –Paragraph: Anti-Corruption Practices
See page 44
Unit of measurement
numbernumbernumbernumber
Chapter: Responsible Corporate Citizen Sub-chapter: Respect for Human Rights –Paragraph: Anti-Corruption Practices
See page 44
Unit of measurement
number (headcount)number (headcount)number (headcount)number (headcount)
Chapter: Responsible Corporate Citizen Sub-chapter: Respect for Human Rights –Paragraph: Anti-Corruption Practices
See page 44
Unit of measurement
numbernumbernumber

2023
125
197
63%
0

2022
1
34
2,898
7,588

2023
0
7
1,442
5,933

2022
0
1
1

2023
0
2
1

0

0

number

1 Data not verified as it falls outside the scope of our assurance activities, which excludes GRI economic indicators.
2 Marelli has performed self-assessment for 125 active production sites as defined for our internal target (SA8000 target). This excludes non-production units, non-controlled JVs, plants closed and standby in 2023 – Russia1. For details – please see page 65.
3 In 2023, 96% of employees have received the training. However, these are salaried employees and Marelli does not have employee break down1.

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GRI – MATERIAL TOPICS – SUSTAINABILITY IN SUPPLY CHAIN

MARELLI APPENDIX
About This Report69

GRI INDICATOR

Conclusions

69

Board of Directors

70

Material topics

70

GRI

71

Independent practitioner’s
assurance reportManagement of material
GRI 3: Material topics 2021
topicsDisclosure 3-3
GRI 308: SUPPLIER ENVIRONMENTAL ASSESSMENT 2016
Disclosure 308-1
New suppliers thatwere screened using
environmental criteria

100

Independent practitioner’s
assurance report on Marelli’s
Greenhouse Gas (GHG) Statement 102

DISCLOSURESLOCATION IN REPORT
Chapter: Responsible Corporate Citizen Sub-chapter: Sustainability in the Supply Chain
See pages 48–50
Chapter: Responsible Corporate Citizen Sub-chapter: Sustainability in the Supply Chain –Paragraph: ESG Criteria for New Supplier Nomination
See page 49
Unit of measurement
2023 Note
Data is not available – New procedure for new%

supplier evaluation released end of FY2023. This
procedure is introducing a screening since thebeginning to check suppliers for ESG requirements
as condition to be qualified. Marelli will put inplace a system of monitoring starting from thisyear to share info in Report FY2024.

Disclosure 308-2

Negative social impacts in the Chapter: Responsible Corporate Citizen Sub-chapter: Sustainability in the Supply Chain –supply chain and actions taken Paragraph: Negative Social Impacts in the Supply Chain and Actions taken
See page 50
Unit of measurement
2022
2023
Suppliers assessed for environmental impacts
number/year
147
317
Suppliers identified as having significant actual and potential number/year
32
184
negative environmental impacts
Suppliers identified as having significant actual and potential number/year
5
21
negative environmental impacts with which improvements
were agreed upon as a result of assessment
Percentage of suppliers identified as having significant actual %
15.6%
11.4%
and potential negative environmental impacts with which
improvements were agreed upon as a result of assessment
Suppliers identified as having significant actual and potential number/year
00
negative environmental impacts with which relationships were
terminated as a result of assessment
Percentage of suppliers identified as having significant actual %0%0%
and potential negative environmental impacts with which
relationships were terminated as a result of assessment

For the latest news, visit our
website: marelli.com

MARELLI APPENDI X

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GRI – MATERIAL TOPICS – SUSTAINABILITY IN SUPPLY CHAIN CONTINUEDMARELLI APPENDIX
About This Report

69

Conclusions

69

Board of Directors

70

Material topics

70

GRI

71

Independent practitioner’s
assurance report100

GRI INDICATORDISCLOSURESGRI 414: SUPPLIER SOCIAL ASSESSMENT 2016
Disclosure 414-1
New suppliers thatwere screened using
environmental criteria
Percentage of new suppliers that were screened using
environmental criteria

LOCATION IN REPORT
Chapter: Responsible Corporate Citizen Sub-chapter: Sustainability in the Supply Chain –Paragraph: ESG Criteria for New Supplier Nomination
See page 49
Unit of measurement
2023 Note
Since 2022, Marelli has set a specific target for newly nominated%suppliers already on our approved list for new projects. Pleaserefer to page 48 for further details. As GRI 308-1 clearly states
the requirements for supplier approval, this data not available;
a new procedure for supplier evaluation was implemented end
FY2023. This procedure introduces an initial supplier screening
against ESG criteria as a condition of approval. A monitoring
system will be in place for FY2024.

Independent practitioner’s
assurance report on Marelli’s
Greenhouse Gas (GHG) Statement 102
Disclosure 414-2

Negative environmental
impacts in the supply chain
and actions taken

Suppliers assessed for social impacts

Chapter: Responsible Corporate Citizen Sub-chapter: Sustainability in the Supply Chain –Paragraph: Negative Social Impacts in the Supply Chain and Actions taken
See page 50
Unit of measurement
2022
2023
number/year
147
317

Suppliers identified as having significant actual and potential number/year
negative social impacts
Suppliers identified as having significant actual and potential number/year
negative social impacts with which improvements were agreed
upon as a result of assessment
Percentage of suppliers identified as having significant%
actual and potential negative social impacts with which
improvements were agreed upon as a result of assessment(automatically calculated)
Suppliers identified as having significant actual and potential number/year
negative social impacts with which relationships were
terminated as a result of assessment
Percentage of suppliers identified as having significant%
actual and potential negative social impacts with which
relationships were terminated as a result of assessment(automatically calculated)
For the latest news, visit our
website: marelli.com

20

61

6

20

30.0%

32.8%

0

0

0.0%

0.0%

MARELLI APPENDI X

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GRI – MATERIAL TOPICS – MATERIAL SOURCINGMARELLI APPENDIX
About This Report69

GRI INDICATORDISCLOSURES

Conclusions

69

Board of Directors

70Management of material topics Chapter: Responsible Corporate Citizen Sub-chapter: Respect for Human Rights
See page 44

Material topics

70

GRI

71

GRI 3: Material topics 2021
Disclosure 3-3
GRI 301: MATERIALS 2016
Disclosure 301-1

Independent practitioner’s
assurance report

100

Independent practitioner’s
assurance report on Marelli’s
Greenhouse Gas (GHG) Statement 102

Materials used by weight

Total materials used1– of which resins– of which steel– of which aluminumGRI 204: PROCUREMENT PRACTICES 2016
Disclosure 204-12
Proportion of spendingon local suppliers
Procurement budget spent on suppliers of the following
locations (direct procurement – service excluded)3
ASEAN
China
India
Japan & Korea
EuropeNorth America
South America
Percentage of local expenditure4
GRI 301: MATERIALS 2016
Disclosure 301-2
Recycled input materials used

LOCATION IN REPORT

Chapter: Responsible Corporate Citizen Sub-chapter: Sustainability in the Supply Chain
See page 49
Unit of measurement
Scope
2022
2023
tons
Group
248,956
283,991
tons
tons
tons

Group
Group
Group

121,926
106,685
20,345

125,449
146,469
12,073

Chapter: Responsible Corporate Citizen Sub-chapter: Sustainability in the Supply Chain
See page 49
Unit of measurement
2022
2023
JPY per year
JPY per year
JPY per year
JPY per year
JPY per year
JPY per year
JPY per year%

123,028

136,916,369,516

51,048231,496
123,437
34,57062,384,494,525
310,125,600,194
172,661,187,264
53,455,803,427

–

81.1%
Note

Chapter: Responsible Corporate Citizen Sub-chapter: Sustainability in the Supply Chain –Paragraph: Material Sourcing
See page 49

For the latest news, visit our
website: marelli.com

1 These materials are priority for most of our customers, therefore the only ones tracked annually for the reporting.
2 Marelli procurement WW, only direct material.
3 Data not verified as it falls outside the scope of our assurance activities, which excludes GRI economic indicators.
4 Marelli defines local as intra-region – EMEA to EMEA, NAFTA to NAFTA. This is aligned with auto industry general assumptions.

Reason for omission – Marelli is in the processof standardising the recycled material definition
for suppliers. We will report in 2024 using thestandardised definition.

MARELLI APPENDI X

GRI – MATERIAL TOPICS – WASTE MANAGEMENTMARELLI APPENDIX
About This Report69

GRI INDICATOR

Conclusions

69

Board of Directors

70

Material topics

70

GRI

71

GRI 3: Material topics 2021
Disclosure 3-3
GRI 306: WASTE 2020
Disclosure 306-1

Independent practitioner’s
assurance report

100

Independent practitioner’s
assurance report on Marelli’s
Greenhouse Gas (GHG) Statement 102

Disclosure 306-2
Disclosure 306-3

DISCLOSURESLOCATION IN REPORTManagement of material topics

Chapter: Environmental Management Sub-chapter: Waste Management
See pages 34–35

Waste generation and significant
waste-related impacts
Management of significant
waste‑related impacts
Waste generated

Chapter: Environmental Management Sub-chapter: Waste Management
See pages 34–35
Chapter: Environmental Management Sub-chapter: Waste Management
See pages 34–35
Chapter: Environmental Management Sub-chapter: Waste Management
See pages 34–35
2021

2022

2023

86,9156,250
80,665–85,457
6,541
78,916
8.8

86,086
6,596
79,490
8.1

Total hazardous and non-hazardous waste directed to disposal1,4– of which sent to incineration (with energy recovery)– of which sent to incineration (without energy recovery)
Landfilling
Other disposal options

tons/yearGrouptons/yearGrouptons/yearGroup
metric tons/million € revenue
Group
Chapter: Environmental Management Sub-chapter: Waste Management
See pages 34–35
Unit of measurement
Scopetons/yearGrouptons/yearGrouptons/yearGrouptons/yearGrouptons/year
Group

Unit of measurement

2021
12,863
5,919
1,402
2,418
3,124

2022
13,274
6,243
1,477
2,135
3,419

2023
13,632
6,312
1,519
2,332
3,468

Total hazardous waste– of which sent to incineration (with energy recovery)– of which sent to incineration (without energy recovery)
Landfilling
Other disposal options

tons/year
tons/year
tons/year
tons/year
tons/year

Group
Group
Group
Group
Group

4,488
2,133
794
25
1,537

4,550
1,897
658
22
1,973

4,823
1,882
903
52
1,986

Total non-hazardous waste– of which sent to incineration (with energy recovery)– of which sent to incineration (without energy recovery)
Landfilling
Other disposal options

tons/year
tons/year
tons/year
tons/year
tons/year

Group
Group
Group
Group
Group

8,375
3,787
608
2,393
1,587

8,724
4,346
819
2,113
1,446

8,809
4,430
617
2,280
1,483

Total waste generated1,2
Total hazardous waste
Total non-hazardous waste
Waste intensity3
Disclosure 306-5

For the latest news, visit our
website: marelli.com

79

Marelli Sustainability Report 2023

Waste directed to disposal

Scope

1 All waste data refers to waste generated by manufacturing activities, which is defined by internal procedure as waste generated from production2.
2 2021 & 2022 data has been restated according to the 2023 perimeter Boundary: 111 Manufacturing productive sites controlled by Marelli (included JV>50% under Marelli control).
3 Waste intensity per worked hours equals to 0.00X. In this report we are disclosing numbers with maximum 2 digits after decimals. Hence, waste intensity per revenue is disclosed in the report.
4 All hazardous and non-hazardous waste has been directed to off-site disposal2.

MARELLI APPENDI X

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Marelli Sustainability Report 2023

GRI – MATERIAL TOPICS – WASTE MANAGEMENT CONTINUEDMARELLI APPENDIX
About This Report

69

Conclusions

69

Board of Directors

70

Material topics

70

GRI

71

Independent practitioner’s
assurance report

100

Independent practitioner’s
assurance report on Marelli’s
Greenhouse Gas (GHG) Statement 102

GRI INDICATOR
Disclosure 306-4

DISCLOSURES
Waste diverted from disposal

LOCATION IN REPORT
Chapter: Environmental Management Sub-chapter: Waste Management
See pages 34–35

Total hazardous and non-hazardous waste diverted from disposal– of which sent to preparation for reuse– of which sent to recycling– of which sent to other recovery operations

Unit of measurement
tons/year
tons/year
tons/year
tons/year

Scope
Group
Group
Group
Group

20213
74,052–
74,052–20223
72,183–72,183–2023
72,454–72,454–

Total hazardous waste2– of which sent to preparation for reuse– of which sent to recycling– of which sent to other recovery operations

tons/year
tons/year
tons/year
tons/year

Group
Group
Group
Group

1,763
–
1,763
–

1,991
–
1,991
–

1,774
–
1,774
–

Total non-hazardous waste– of which sent to preparation for reuse– of which sent to recycling– of which sent to other recovery operations

tons/year
tons/year
tons/year
tons/year

Group
Group
Group
Group

72,289–72,289–70,192–
70,192–

70,681–
70,681–

1

For the latest news, visit our
website: marelli.com

1 All waste data refers to waste generated by manufacturing activities, which is defined by internal procedure as waste generated from production 2021 & 2022 data has been restated according to the 2023 perimeter.
2 All hazardous and non-hazardous waste has been directed to off-site disposal3.
3 2021 & 2022 data has been restated according to the 2023 perimeter Boundary: 111 Manufacturing productive sites controlled by Marelli (included JV>50% under Marelli control).

MARELLI APPENDI X

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Marelli Sustainability Report 2023

GRI – MATERIAL TOPICS – CLIMATE CHANGE & ACTION / ENERGY MANAGEMENTMARELLI APPENDIX
About This Report69

GRI INDICATORDISCLOSURESLOCATION IN REPORT

Conclusions

69

Management of material topics

Board of Directors

70

Chapter: Environmental Management Sub-chapter: Climate Change Action; Energy Management
See pages 27–33

Material topics

70

GRI

71

GRI 3: Material topics 2021
Disclosure 3-3
GRI 302: ENERGY 2016
Disclosure 302-1 Energy consumption
within the organization

Energy consumption within theorganization

Chapter: Environmental Management Sub-chapter: Energy Management
See pages 30–33

Independent practitioner’s
assurance report

100

Total energy consumption

Unit of measurement
GJ/Year

Scope
Group

2021
5,025,946

2022
4,975,028

2023
5,025,600

Total indirect energy consumption

GJ/YearGroup

3,831,279

3,837,464

3,884,428– of which electricity consumption from non-renewable sources– of which purchased electricity from certified renewable sources– of which electricity from combined heat and power– of which cooling from non-renewable sources– of which compressed air from non-renewable sources– of which thermal energy from supplier CHP (Combined Heat and Power)– of which thermal energy from supplier (non-renew)– of which thermal energy from supplier (renew)

GJ/Year
GJ/Year
GJ/Year
GJ/Year
GJ/Year
GJ/Year
GJ/Year
GJ/Year

Group
Group
Group
Group
Group
Group
Group
Group

3,241,998
537,108
–
261
2,208
–
44,707
4,997

2,764,739
1,027,130
5,169
254
4,640
–
31,8493,684

2,347,538
1,505,626
3,993
230
5,099
7,705
10,856
3,380

Total direct energy consumption– of which natural gas– of which gasoline– of which diesel– of which LPG– of which HSC and LSC oil– of which A-type heavy oil– of which renewable fuels– of which self-produced renewable electricity

GJ/Year
GJ/Year
GJ/Year
GJ/Year
GJ/Year
GJ/Year
GJ/Year
GJ/Year
GJ/Year

Group
Group
Group
Group
Group
Group
Group
Group
Group

1,194,667
1,015,982
1,095
3,574
149,854
1,305
18,084–4,773

1,137,563
935,137
1,126
3,391
172,268
1,324
19,605–
4,712

1,141,172
895,446
1,478
26,814
189,781
1,353
15,633–
10,666

Independent practitioner’s
assurance report on Marelli’s
Greenhouse Gas (GHG) Statement 102

Disclosure 302-3

Energy intensity1
For the latest news, visit our
website: marelli.com

Energy Intensity

Chapter: Environmental Management Sub-chapter: Energy Management
See pages 30–33
Unit of measurement

Scope

2021

2022

2023

MJ/worked hours
MWh/million € revenue

Group
Group

64.92
–

62.83
142.5

61.08
132.0

1 Marelli has historically reported intensity based on worked hours. For the first time in 2023, Marelli is reporting intensity based on revenue.

MARELLI APPENDI X

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GRI – MATERIAL TOPICS – CLIMATE CHANGE & ACTION / ENERGY MANAGEMENT CONTINUEDMARELLI APPENDIX
About This Report

69

Conclusions

69

Board of Directors

70

Material topics

70

GRI

71

Independent practitioner’s
assurance report

100

Independent practitioner’s
assurance report on Marelli’s
Greenhouse Gas (GHG) Statement 102

GRI INDICATOR
GRI 305: Emissions 2016
Disclosure 305-1

DISCLOSURESLOCATION IN REPORT

Direct Scope 1 GHG emission

Chapter: Environmental Management Sub-chapter: Climate Change Action
See pages 27–28

Scope 1 GHG emissions1
Disclosure 305-2

Indirect Scope 2 GHG emission

Scope 2 GHG emissions (market-based)
Scope 2 GHG emissions (local-based)2Disclosure 305-33

1

Other indirect GHG emissions (Scope 3)

Unit of measurement
Scope
2021
tCO2e/yearGroup62,388Chapter: Environmental Management Sub-chapter: Climate Change Action
See pages 27–28

2022
59,5272023
59,961

Unit of measurement
Scope
2021
tCO2e/yearGroup386,674tCO2e/yearGroup391,204
Chapter: Environmental Management Sub-chapter: Climate Change Action
See pages 27–28

2022
369,343
406,1072023
334,812422,402

Scope
Group

2022

2023

Scope 3 – Category 1 – Purchased goods and services

Unit of measurementtCO2e/year

4,002,900

3,908,567

Scope 3 – Category 2 – CAPEX

tCO2e/yearGroup105,685

100,117

Scope 3 – Category 3 – Fuel & energy related

tCO2e/yearGroup

129,332

131,721

Scope 3 – Category 4 – Upstream transportation & distribution

tCO2e/yearGroup

365,054

311,012

Scope 3 – Category 5 – Waste generated in operations

tCO2e/year

Group

4,584

5,002

Scope 3 – Category 6 – Business traveltCO2e/yearGroup

10,308

14,270

Scope 3 – Category 7 – Employee commuting

tCO2e/yearGroup

63,83955,242For the latest news, visit our
website: marelli.com

1 2021 & 2022 data has been restated according to the 2023 perimeter. Boundary: 111 Manufacturing productive sites controlled by Marelli (included JV>50% under Marelli control).
2 Scope 2 emission (market-based) are third party verified emissions.
3 Marelli Scope 3 emissions are under third-party verification. Verified numbers will be disclosed in 2024 CDP assessment.

MARELLI APPENDI X

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GRI – MATERIAL TOPICS – CLIMATE CHANGE & ACTION / ENERGY MANAGEMENT CONTINUEDMARELLI APPENDIX
About This Report69

GRI INDICATORDISCLOSURESLOCATION IN REPORT

Conclusions

69

Disclosure 305-4

GHG emissions intensity

Board of Directors

70

Material topics

70

GRI

71

Independent practitioner’s
assurance report

100

Chapter: Environmental Management Sub-chapter: Climate Change Action
See pages 27–28
Unit of measurement
Scope
2022
2023
tCO2e/worked hourGroup0.00540.0048tCO2e/revenue (million euros)
Group
44.21
37.34
Chapter: Environmental Management Sub-chapter: Climate Change Action – Paragraph: Progress in 2023
See page 27

Independent practitioner’s
assurance report on Marelli’s
Greenhouse Gas (GHG) Statement 102

Scope 1 and Scope 2 (market-based) GHG emissions intensity ratio1
Scope 1 and Scope 2 (market-based) GHG emissions intensity ratio
Reduction of GHG emissions
Disclosure 305-52
Disclosure 305-6
PM (Dust)
NOx
SOx
Total other significant air emissions

Unit of measurement
Tons/year
Tons/year
Tons/year
Tons/year

For the latest news, visit our
website: marelli.com

1 Marelli has historically reported intensity based on worked hours. For the first time in 2023, Marelli is reporting intensity based on revenue.
2 Link of the reduction emissions as compared to 2022 – See page 27.

Scope
Group
Group
Group
Group

2022
2,827
105,441
10,360118,629

2023
4,983
131,871
8,409
145,262

MARELLI APPENDI X

84

Marelli Sustainability Report 2023

GRI – MATERIAL TOPICS – WATERMARELLI APPENDIX
About This Report69

GRI INDICATORDISCLOSURESLOCATION IN REPORT

Conclusions

69

Management of material topics

Board of Directors

70

Chapter: Environmental Management Sub-chapter: Water Conservation
See pages 36–38

Material topics

70

GRI

71

GRI 3: Material topics 2021
Disclosure 3-3
GRI 303: WATER AND EFFLUENTS 2018
Disclosure 303-31,2

Water withdrawal

Independent practitioner’s
assurance report

100

Total water withdrawal
Surface water withdrawn– of which from water stress area2
percentage from water stress area

Chapter: Environmental Management Sub-chapter: Water Conservation – Paragraph: Total Water Withdrawal (ML)See page 38
Unit of measurement
Scope
2021
2022
2023
ML /year
Group
2,446
2,237
2,109
ML/year
Group
105
107
101
ML/year
Group
19
17
%
Group
17.8%
17.1%

Groundwater withdrawn– of which from water stress area
percentage from water stress area

ML/yearML/year
%

Group
Group
Group

406

361
–
–

332
0.01
0%

Seawater withdrawn– of which from water stress area
percentage from water stress area

ML/yearML/year
%

Group
Group
Group

–
–
–

–
–
–

–
–
–

Third party water (e.g. municipal water suppliers and municipal
wastewater treatment plants, public or private utilities)– of which from water stress area
percentage from water stress area

ML/year

Group

1,935

1,769

1,676

ML/year
%

Group
Group

648
33.5%

586
33.1%

650
38.8%

Water intensity
Water intensity

m3/ million € revenue
ML/ Worked hours

Group
Group

–
31.60

230.6
28.25

199.5
25.64

Independent practitioner’s
assurance report on Marelli’s
Greenhouse Gas (GHG) Statement 102

For the latest news, visit our
website: marelli.com

1 2021 & 2022 data has been restated according to the 2023 perimeter.
2 Boundary: 111 Manufacturing productive sites controlled by Marelli (included JV>50% under Marelli control).

MARELLI APPENDI X

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GRI – MATERIAL TOPICS – WATER CONTINUEDMARELLI APPENDIX
About This Report69

GRI INDICATORDISCLOSURESLOCATION IN REPORT

Conclusions

69

Disclosure 303-4

Water discharge

Board of Directors

70

Chapter: Environmental Management Sub-chapter: Water Conservation – Paragraph: Water Discharge (ML)See page 38

Material topics

70

GRI

71

Independent practitioner’s
assurance report

100

Independent practitioner’s
assurance report on Marelli’s
Greenhouse Gas (GHG) Statement 102

Total water discharged1

Unit of measurement
ML /year

Scope
Group

2021
1,435

2022
1,291

2023
1,526

– to surface water– of which from water stress area
percentage from water stress area

ML/yearML/year
%

Group
Group
Group

98
–
–

85
2
2.8%

78
–
0.0%

– to groundwater– of which from water stress area
percentage from water stress area

ML/yearML/year
%

Group
Group
Group

–
–
–

–
–
–

1
–
–

– to seawater– of which from water stress area
percentage from water stress area

ML/yearML/year
%

Group
Group
Group

–
–
–

–
–
–

–
–
–

– to third party water (e.g. municipal water suppliers and municipal
wastewater treatment plants, public or private utilities)– of which from water stress area
percentage from water stress area

ML/year

Group

1,337

1,206

1,447

ML/year
%

Group
Group

310
23.2%

278
23.1%

438
30.3%

Disclosure 303-5

Chapter: Environmental Management Sub-chapter: Water Conservation
See pages 36–38

Water consumption

Unit of measurement

Scope

2021

2022

2023

– of which from water stress area
non-GRI Recycled water index2

ML/year (calculated)
ML/year
%

Group
Group
Group

1,011
338
92.6%

946
324
92.2%

583
229
90.9%

Water recycled and reused

ML/yearGroup

30,42826,524

20,974

Chapter: Environmental Management, Responsible Corporate Citizen
Sub-chapter: Toxic Emissions, Sustainability in the Supply Chain
See pages 39, 49–50
Unit of measurement
Scope
Number of sites
Group

20223
104

20234
104

%

94.0%

94.0%

Total water consumption1

non-GRI

For the latest news, visit our
website: marelli.com

Energy management systems andEnvironmental audits

Number of sites with a certified ISO 14001 environmental
management system
Number of sites with a certified ISO 14001 environmental
management system

Group

1 2021 & 2022 data has been restated according to the 2023 perimeter. Boundary: Manufacturing productive sites controlled by Marelli (included JV>50% under Marelli control): 111.
2 Non-GRI definition: KPI which doesn’t fall under GRI requirements. Marelli is reporting non-GRI in accordance with our sustainability strategy.
3 2022 data: 104 sites certified on 111 productive sites.
4 2023 data: 104 sites certified on 111 productive sites. Water recycled/reused also considers rainwater reused/recycled at our sites.

MARELLI APPENDI X

86

Marelli Sustainability Report 2023

GRI – MATERIAL TOPICS – BIODIVERSITYMARELLI APPENDIX
About This Report69

GRI INDICATORDISCLOSURESLOCATION IN REPORT

Conclusions

69

Management of material topics

Board of Directors

70

Chapter: Environmental Management Sub-chapter: Biodiversity
See page 40

Material topics

70

GRI

71

GRI 3: Material topics 2021
Disclosure 3-3
GRI 304: BIODIVERSITY
Disclosure 304-1

Chapter: Environmental Management Sub-chapter: Biodiversity
See page 40

Independent practitioner’s
assurance report100

Operational sites owned, leased, managed
in, or adjacent to, protected areas andareas of high biodiversity value outside
protected areas

Independent practitioner’s
assurance report on Marelli’s
Greenhouse Gas (GHG) Statement 102

For the latest news, visit our
website: marelli.com

GRI – MATERIAL TOPICS – LABOR RELATIONSGRI INDICATORDISCLOSURESLOCATION IN REPORTGRI 3: Material topics 2021
Disclosure 3-3
GRI 401: EMPLOYMENT 2016

Management of material topics

Chapter: Marelli People Sub-chapter: Labor Relations
See pages 66–67

Disclosure 401-1

New employee hires and employee turnover

Chapter: Marelli People Sub-chapter: Labor Relations
See pages 66–67

New hires in reporting year (permanent employees only)
hiring rate (tot)

Unit of measurement
number (headcount)
%

Scope
Group
Group

2022
9,967
20.6%

2023
7,548
17.9%

– of which female
hiring rate female– of which < 30 years oldhiring rate <30– of which 30 <= x <= 50
hiring rate 30<=x<=50– of which > 50 years oldhiring rate >50– of which malehiring rate male– of which < 30 years oldhiring rate <30– of which 30 <= x <= 50
hiring rate 30<=x<=50

number (headcount)%number (headcount)%number (headcount)%number (headcount)%number (headcount)%number (headcount)%number (headcount)
%

Group
Group
Group
Group
Group
Group
Group
Group
Group
Group
Group
Group
Group
Group

3,867
27.3%
2,132
70.4%
1,598
18.1%
137
5.9%
6,099
17.8%
3,434
51.8%
2,370
11.5%

3,005
24.2%
1,533
71.1%
1,340
17.5%
132
5.1%
4,543
15.3%
2,488
53.4%
1,795
10.02%

MARELLI APPENDI X

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About This Report69

GRI INDICATORDISCLOSURESLOCATION IN REPORT

Conclusions

69

Board of Directors

70

Disclosure 401-1
continued

New employee hires
and employee turnover

Chapter: Marelli People Sub-chapter: Labor Relations
See pages 66–67

Material topics

70

GRI

71

Independent practitioner’s
assurance report

100

Independent practitioner’s
assurance report on Marelli’s
Greenhouse Gas (GHG) Statement 102

For the latest news, visit our
website: marelli.com

Unit of measurement

Scope

2022

2023

– of which > 50 years oldhiring rate >50– of which undefined “other”

number (headcount)%number (headcount)

295
4.3%
1

260
3.6%
–

hiring rate “other”

%

100%

–

New hires of which South America (SA)hiring rate South America (SA)New hires of which North America (NA)hiring rate North America (NA)New hires of which EMEA
hiring rate EMEA
New hires of which India
hiring rate India
New hires of which ASEAN
hiring rate ASEAN
New hires of which China
hiring rate China

number (headcount)%number (headcount)%number (headcount)%number (headcount)%number (headcount)%number (headcount)
%

Group
Group
companies/countries
for which gender
information is notavailablecompanies/countries
for which gender
information is notavailable
SA
SA
NA
NA
EMEA
EMEA
India
India
ASEAN
ASEAN
China
China

523
11.2%
6,739
52.1%
1,095
6.0%
360
39.1%
415
6.7%
835
15.1%

546
7.2%
5,705
50.4%
905
5.5%
110
13.4%
136
2.8%
146
3.6%

Leavers in reporting year (Permanent employees only)
leavers rate (tot)– of which voluntary leavers
leavers rate
– of which female
leavers rate female– of which < 30 years old
leavers rate <30– of which voluntary leavers
leavers rate voluntary– of which 30 <= x <= 50
leavers rate 30<=x<=50– of which voluntary leavers

number (headcount)%number (headcount)%number (headcount)%number (headcount)%number (headcount)%number (headcount)%number (headcount)

Group
Group
Group
Group
Group
Group
Group
Group
Group
Group
Group
Group
Group

13,687
28.3%
7,353
15.2%
4,535
32.0%
1,953
64.5%
1,287
42.5%
2,123
24.1%
1,177

14,328
34.0%
6,087
14.5%
4,997
40.2%
1,703
79.0%
897
41.6%
2,744
35.7%
1,161

MARELLI APPENDI X

88

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GRI – MATERIAL TOPICS – LABOR RELATIONS CONTINUEDMARELLI APPENDIX
About This Report69

GRI INDICATORDISCLOSURESLOCATION IN REPORT

Conclusions

69

New employee hires and employee turnover

Board of Directors

70

Disclosure 401-1
continued

Chapter: Marelli People Sub-chapter: Labor Relations
See pages 66–67

Material topics

70

GRI

71

Independent practitioner’s
assurance report

100

Independent practitioner’s
assurance report on Marelli’s
Greenhouse Gas (GHG) Statement 102

For the latest news, visit our
website: marelli.com

leavers rate voluntary– of which > 50 years old
leavers rate >50– of which voluntary leavers
leavers rate voluntary– of which maleleaver rate male– of which < 30 years old
leavers rate <30– of which voluntary leavers
leavers rate voluntary– of which 30 <= x <= 50
leavers rate 30<=x<=50– of which voluntary leavers
leavers rate voluntary– of which > 50 years old
leavers rate >50– of which voluntary leavers
leavers rate voluntary
Leavers of which South America (SA)Leavers rate South America (SA)Leavers of which North America (NA)
Leavers rate North America (NA)
Leavers of which EMEA
Leavers rate EMEA
Leavers of which India
Leavers rate India
Leavers of which ASEAN
Leavers rate ASEAN
Leavers of which China
Leavers rate China

Unit of measurement

Scope

2022

2023

%
number (headcount)%number (headcount)%number (headcount)%number (headcount)%number (headcount)%number (headcount)%number (headcount)%number (headcount)%number (headcount)%number (headcount)%number (headcount)%number (headcount)%number (headcount)%number (headcount)%number (headcount)
%

Group
Group
Group
Group
Group
Group
Group
Group
Group
Group
Group
Group
Group
Group
Group
Group
Group
Group
Group
SA
SA
NA
NA
EMEA
EMEA
India
India
ASEAN
ASEAN
China
China

13.4%
459
19.8%
135
5.8%
9,152
26.8%
3,562
53.7%
2,159
32.6%
4,225
20.5%
2,306
11.2%
1,365
19.7%
289
4.2%
598
12.8%
7,049
54.5%
3,218
17.8%
154
16.7%
1,555
25.1%
1,113
20.1%

15.1%
550
21.2%
192
7.4%
9,331
31.4%
2,707
58.1%
1,366
29.3%
4,902
27.4%
2,131
11.9%
1,722
24.1%
340
4.8%
738
15.7%
7,534
66.5%
2,885
17.7%
206
25.1%
1,387
28.7%
1,578
38.4%

MARELLI APPENDI X

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GRI – MATERIAL TOPICS – LABOR RELATIONS CONTINUEDMARELLI APPENDIX
About This Report69

GRI INDICATORDISCLOSURESLOCATION IN REPORT

Conclusions

69

Disclosure 401-2

Board of Directors

70

Benefits provided to full-time employeesthat are not provided to temporary orpart time employees

Material topics

70

GRI

71

Independent practitioner’s
assurance report

Life insurance1
Health care2

Chapter: Marelli People Sub-chapter: Employee Engagement and well-being, Prioritizing Employee
wellbeing – Paragraph: Benefits provided to full-time employees
See pages 54 and 57
Unit of measurement
Scope
2022
2023
number (headcount)
Group
–
70%
number (headcount)
Group
–
78%

100

Disability and invalidity coverage
Parental leave
Retirement provision
Stock ownership
Other

number (headcount)number (headcount)number (headcount)number (headcount)number (headcount)

Independent practitioner’s
assurance report on Marelli’s
Greenhouse Gas (GHG) Statement 102

Disclosure 401-3

Parental leave

–
–
–
–
–

61%
100%
61%
0%
Employee Cafeteria or
Lunch Vouchers = 43%Childcare Services = 30%
Wellness and Nutrition
Programs = 65%
Gym/Fitness Services =22%

Chapter: Marelli People Sub-chapter: Prioritizing employee well-being
See page 57
Unit of measurement
number (headcount)number (headcount)

Scope
Group
Group

2022
36,619
11,2172023
43,504
12,916.5– of which malenumber (headcount)Group

25,40230,587.5

Total number of employees that took parental leave– of which female– of which male
Total number of employees that returned to work in the reporting period after parental
leave ended– of which female– of which male
Total number of employees that returned to work after parental leave ended that were still
employed 12 months after their return to work
– of which female– of which malenumber (headcount)number (headcount)number (headcount)number (headcount)

Group
Group
Group
Group

2,919
1,288
1,631
2,622

1,815
825
990
1,416

number (headcount)number (headcount)number (headcount)

Group
Group
Group

1,009
1,613
2,142

435
981
1,251

number (headcount)number (headcount)

Group
Group

767
1,375

385
866

Total number of employees that were entitled to parental leave– of which female

For the latest news, visit our
website: marelli.com

Group
Group
Group
Group
Group

1. Marelli started reporting this indicator in 2023.
2. Parental leaves includes full time employees only3.
3. Parental leaves includes both full-time employees as well as part-time employees.
4. Marelli has operations in Korea where employees are not entitled to parental leave3.

3,4

MARELLI APPENDI X

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About This Report

69

LOCATION IN REPORT69

GRI INDICATORGRI 402: LABOR/MANAGEMENT RELATIONSDISCLOSURES

Conclusions
Board of Directors

70

Disclosure 402-1

Material topics

70

Minimum notice periods regarding
operational changes

Chapter: Marelli People
Sub-chapter: Labor Relations – Paragraph: Minimum notice periods regarding operational changes
See page 67

GRI

71

Independent practitioner’s
assurance report

100

Incidents of discrimination and corrective
actions taken

Chapter: Responsible Corporate Citizen
Sub-chapter: Respect for Human Rights – Paragraph: Substantiated Cases per Category
See page 45
Unit of measurement
Scope
2022
number (headcount)Group–

GRI 406: NON-DISCRIMINATION 2016
Disclosure 406-1

Independent practitioner’s
assurance report on Marelli’s
Greenhouse Gas (GHG) Statement 102

Total number of incidents of discrimination
GRI 407: FREEDOM OF ASSOCIATION AND COLLECTIVE BARGAINING
1

Disclosure 407-1

Operations and suppliers in which the rightto freedom of association and collective
bargaining may be at risk

Chapter: Responsible Corporate Citizen Sub-chapter: Respect for Human Rights
See pages 43–44

For the latest news, visit our
website: marelli.com

1 Based on confirmed allegations received through the Integrity Hotline under the category “Discrimination” in 2023 only 1 case was confirmed, and action taken was “Advice /assistant provided” through coaching.

2023
1MARELLI APPENDI X

GRI – MATERIAL TOPICS – EMPLOYEE ENGAGEMENTMARELLI APPENDIX
About This Report

69

Conclusions

69

Board of Directors

70

Material topics

70

GRI

71

Independent practitioner’s
assurance report

100

Independent practitioner’s
assurance report on Marelli’s
Greenhouse Gas (GHG) Statement 102

For the latest news, visit our
website: marelli.com

91

Marelli Sustainability Report 2023

GRI INDICATOR
GRI 3: Material topics 2021
Disclosure 3-3

DISCLOSURESManagement of material topics

LOCATION IN REPORT
Chapter: Marelli People Sub-chapter: Employee Engagement and well-being
See pages 52-55

GRI 404: TRAINING AND EDUCATION 2016
Disclosure 404-1

Average hours of training per year per employee

Total training hours: Executives (Directors and above)of which female

Unit of measurement
hours/year
hours/year

Chapter: Advanced Mobility and Innovation,
Marelli People Sub-chapter: Product Safety
and Quality: Elevating Standards andEnhancing Performance, Training
and Development
See pages 25 and 58–59
Scope
2022
2023
Group
2,528
5,063
Group
325
902

of which malehours/year

Group

2,203

4,160

Average training hours: Executives (Directors and above)

hours/employee

Group

4.4

11.0

of which female

hours/year

Group

4.5

13.1

of which malehours/year

Group

4.4

10.6

Total training hours: (Manager)

hours/yearGroup

38,66475,755of which female

hours/year

Group

6,826

15,826of which malehours/yearGroup

31,83859,929Average training hours: (Manager)

hours/employee

Group

10.7

25.8

of which female

hours/year

Group

11.7

32.7

of which malehours/year

Group

10.5

24.4

Total training hours: (Salaried)

hours/yearGroup

199,052

83,452of which female

hours/yearGroup

52,897

24,379of which malehours/yearGroup

146,141

59,074

Average training hours: (Salaried)

hours/employee

Group

15.06

8.39

of which female

hours/year

Group

14.0

9.2

of which malehours/year

Group

15.5

8.1

Total training hours: (Hourly)

hours/yearGroup

189,454281,842of which female

hours/yearGroup

36,612

46,748of which malehours/yearGroup

152,842

235,094

Average training hours: (Hourly)

hours/employee

Group

5.8

9.3

of which female

hours/year

Group

3.5

4.8

of which malehours/year

Group

6.8

11.5

MARELLI APPENDI X

GRI – MATERIAL TOPICS – EMPLOYEE ENGAGEMENTMARELLI APPENDIX
About This Report69

GRI INDICATORDISCLOSURES

Conclusions

69

Disclosure 404-2

Board of Directors

70

Programs for upgrading employee skills and transition
assistance programs

Material topics

70

GRI

71

Independent practitioner’s
assurance report

100

Independent practitioner’s
assurance report on Marelli’s
Greenhouse Gas (GHG) Statement 102

For the latest news, visit our
website: marelli.com

92

Marelli Sustainability Report 2023

LOCATION IN REPORT

Chapter: Marelli People Sub-chapter: Training and Development – Paragraph: Global learning anddevelopment programs
See pages 58–59
Disclosure 404-3
Percentage of employees receiving regular performance Chapter: Marelli People Sub-chapter: Training and Development – Paragraph: Percentage of employees
and career development reviewsreceiving regular performance and career development reviews
See pages 58–59
Unit of measurement
Scope
2022
2023
Number of employees receiving regular performance and career development reviews number (headcount)Group–
26,333
Percentage of employees receiving regular performance and career development reviews
%
Group
–
60.4%
– of which women
percentage of women

number (headcount)
%

Group
Group

–
–

7,061
54.6%

– of which men
percentage of men

number (headcount)
%

Group
Group

–
–

19,272
62.9%

Executive (Directors and above)– of which women

number (headcount)number (headcount)

Group
Group

–
–

450
69

percentage of women– of which men%
number (headcount)

Group
Group

–
–

100%
381

percentage of men
Manager%number (headcount)

Group
Group

–
–

97.4%
2,857

– of which women
percentage of women

number (headcount)
%

Group
Group

–
–

468
96.7%

– of which men
percentage of men

number (headcount)
%

Group
Group

–
–

2,389
97.2%

Salaried– of which women

number (headcount)number (headcount)

Group
Group

–
–

8,534
2,245

percentage of women– of which men%
number (headcount)

Group
Group

–
–

85.0%
6,289

percentage of men
Hourly%number (headcount)

Group
Group

–
–

86.1%
14,492– of which women
percentage of women

number (headcount)
%

Group
Group

–
–

4,279
44.0%

– of which men
percentage of men

number (headcount)
%

Group
Group

–
–

10,21349.8%

MARELLI APPENDI X

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GRI – MATERIAL TOPICS – OCCUPATIONAL HEALTH AND SAFETY

MARELLI APPENDIX
About This Report69

GRI INDICATOR

Conclusions

69

Board of Directors

70

Chapter: Marelli People Sub-chapter: Occupational Health and Safety
See page 63–65

Material topics

70

Management of material topics
GRI 3: Material topics 2021
Disclosure 3-3
GRI 403: OCCUPATIONAL HEALTH AND SAFETY 2018

GRI

71

Disclosure 403-1

Independent practitioner’s
assurance report

Occupational health and safety
management system
Promotion of worker health100

Chapter: Marelli People Sub-chapter: Occupational Health and Safety – Paragraph: Our Approach
See page 63
Chapter: Marelli People Sub-chapter: Occupational Health and Safety – Paragraph: Our Approach
See page 63

Prevention and mitigation ofoccupational health and safety
impacts directly linked by business
relationships
Work-related injuries

Chapter: Marelli People Sub-chapter: Occupational Health and Safety – Paragraph: Our Approach
See page 63

Disclosure 403-6

Independent practitioner’s
assurance report on Marelli’s
Greenhouse Gas (GHG) Statement 102

Disclosure 403-7

Disclosure 403-9

DISCLOSURESLOCATION IN REPORT

Chapter: Marelli People Sub-chapter: Occupational Health and Safety – Paragraph: Work-related injuries
See page 64–65

Employees
Number of work-related injuries

Unit of measurement
number/year

Scope
Group

2022
497

2023
449

– of which number of fatal injuries– of which high consequence loss time injuries (LTI)1

number/year
number/year

Group
Group

1
18

–
16

– of which LTI2
– of which first aid (FA)number/year
number/year

Group
Group

66
412

63
370

Number of commuting injuries
Worked hours

number/year
number/year

Group
Group

157
90,048,083

208
87,117,977

Rate of fatalities as a result of work-related injury
Rate of high-consequence work-related injuries (excluding fatalities)(Fatal injuries/Worked hours) x 1,000,000(High consequences LTI/Worked hours) x 1,000,000

Group
Group

0.01
0.2

–
0.18

Rate of recordable work-related injuries
Rate of total LTI (included high consequences loss LTI)

(Number of work-related injuries/Worked hours) x 1,000,000(Number of serious LTI+Number of LTI+Number of fatalities/
Worked hours) x 1,000,000

Group
Group

5.5
0.94

5.2
0.91

For the latest news, visit our
website: marelli.com

1 High consequence LTI is defined as an injury from which the worker cannot, does not, or is not expected to recover fully to pre-injury health status within 6 months.
2 LTI is defined as the injury which causes the worker to be absent at least one day not including the day of the injury.

MARELLI APPENDI X

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GRI – MATERIAL TOPICS – OCCUPATIONAL HEALTH AND SAFETY CONTINUEDMARELLI APPENDIX
About This Report69

GRI INDICATORDISCLOSURESLOCATION IN REPORT

Conclusions

69

Work-related injuries

Board of Directors

70

Disclosure 403-9
Continued

Chapter: Marelli People Sub-chapter: Occupational Health and Safety – Paragraph: Work-related injuries
See page 64–65

Material topics

70

GRI
Independent practitioner’s
assurance report

Unit of measurement

Scope

2022

2023

71

Workers who are not employees (AGENCY+EXTERNAL CONTRACTORS)
Number of work-related injuries

number/year

Group

38

20

100

– of which number of fatal injuries– of which high consequences loss time injuries (LTI)

number/year
number/year

Group
Group

–
2

–
5

– of which LTI– of which first aid (FA)number/year
number/year

Group
Group

2
34

11
4

Number of commuting injuries
Worked hours

number/year
number/year

Group
Group

–
16,348,977–
18,647,017

Rate of fatalities as a result of work-related injury
Rate of high-consequence work-related injuries (excluding fatalities)(Fatal injuries/Worked hours) x 1,000,000(High consequences LTI/Worked hours) x 1,000,000

Group
Group

–
0.1

–
0.3

Rate of recordable work-related injuries
Rate of total LTI (included high consequences loss LTI)

(Number of work-related injuries/Worked hours) x 1,000,000
Group
2.3
1.1
(Number of serious LTI+Number of LTI+Number of fatalities/
Group
0.2
0.9
Worked hours) x 1,000,000
Chapter: Marelli People Sub-chapter: Occupational Health and Safety – Paragraph: Work-related ill-healthSee page 64

Independent practitioner’s
assurance report on Marelli’s
Greenhouse Gas (GHG) Statement 102

Disclosure 403-10

Work-related ill health

Employees
Number of work-related ill health1
Workers who are not employees
Number of work-related ill health
NON-GRI

Occupational Health and Safety
management system

Number of sites with a certified ISO 45001 health and safety management system2

For the latest news, visit our
website: marelli.com

1 2023: 3 AOI biomedical overload and vibration; cumulative trauma, ergonomic related.
2 2022 data has been restated in alignment with the 2023 perimeter.

Unit of measurement

Scope

2022

2023

number/year

Group

5

3

number/year

Group

–

–

2022
55.0%

2023
91.0%

Chapter: Marelli People Sub-chapter: Occupational Health and Safety
See page 64
Unit of measurement% productive sites covered by certification

Scope
Group

MARELLI APPENDI X

95

Marelli Sustainability Report 2023

GRI – MATERIAL TOPICS – DIVERSITY AND INCLUSIONMARELLI APPENDIX
About This Report69

GRI INDICATOR

Conclusions

69

Board of Directors

70

Chapter: Marelli People Sub-chapter: Diversity and Inclusion
See pages 60–62

Material topics

70

Management of material topics
GRI 3: Material topics 2021
Disclosure 3-3
GRI 405: Diversity and Equal Opportunity 2016

GRI

71

Disclosure 405-1 (a)Chapter: Marelli People Sub-chapter: Diversity and Inclusion
See page 61

Independent practitioner’s
assurance report

100

Independent practitioner’s
assurance report on Marelli’s
Greenhouse Gas (GHG) Statement 102

For the latest news, visit our
website: marelli.com

DISCLOSURES

Diversity of governance bodies
and employees

LOCATION IN REPORT

Total number of employees in Top Management

Unit of measurement
number (headcount)

Scope
Group

2022
571

2023
460

– of which female– of which female

number (headcount)
%

Group
Group

72
12.6%

69
15.0%

– of which < 30 years old– of which < 30 years oldnumber (headcount)
%

Group
Group

–
–

–
–

– of which 30 <= x <= 50– of which 30 <= x <= 50

number (headcount)
%

Group
Group

47
8.2%

38
8.3%

– of which > 50 years old– of which > 50 years oldnumber (headcount)
%

Group
Group

25
4.4%

31
6.7%

– of which male– of which < 30 years oldnumber (headcount)number (headcount)

Group
Group

499
1

391
–

– of which < 30 years old

%

Group

0.18%

–

– of which 30 <= x <= 50

number (headcount)

Group

191

132

– of which 30 <= x <= 50

%

Group

33.5%

28.7%

– of which > 50 years oldnumber (headcount)

Group

307

259

– of which > 50 years old

%

Group

53.8%

56.3%

Total number of Manager

number (headcount)

Group

3,632

2,941

– of which female

number (headcount)

Group

585

484

– of which < 30 years oldnumber (headcount)

Group

7

2

– of which 30 <= x <= 50

number (headcount)

Group

474

375

– of which > 50 years oldnumber (headcount)

Group

104

107

– of which men

number (headcount)

Group

3,047

2,457

– of which < 30 years oldnumber (headcount)

Group

27

5

– of which 30 <= x <= 50

number (headcount)

Group

1,874

1,470

– of which > 50 years oldnumber (headcount)

Group

1,146

982

– of which belonging to vulnerable groups and/or minority group (e.g. Employeeswith disabilities)– of which belonging to vulnerable groups and/or minority group (e.g. Employeeswith disabilities)1

number (headcount)

Group

14

11

%

Group

3.5%

2.8%

1 Percentage is calculated as total number of employees belonging to vulnerable groups/minority groups (e.g. Employees with disabilities).

MARELLI APPENDI X

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GRI – MATERIAL TOPICS – DIVERSITY AND INCLUSION CONTINUEDMARELLI APPENDIX
About This Report69

GRI INDICATORDISCLOSURESLOCATION IN REPORT

Conclusions

69

Board of Directors

70

Disclosure 405-1 (a)Continued

Diversity of governance bodies
and employees

Chapter: Marelli People Sub-chapter: Diversity and Inclusion
See page 61

Material topics

70

GRI

71

Independent practitioner’s
assurance report

100

Independent practitioner’s
assurance report on Marelli’s
Greenhouse Gas (GHG) Statement 102

For the latest news, visit our
website: marelli.com

Unit of measurement

Scope

2022

2023

Total number of Salaried

number (headcount)Group

13,2209,942– of which female

number (headcount)

Group

3,783

2,641.5– of which < 30 years oldnumber (headcount)

Group

1,017

478

– of which 30 <= x <= 50

number (headcount)

Group

2,417

1,822

– of which > 50 years oldnumber (headcount)

Group

349

342

– of which men

number (headcount)

Group

9,437

7,300.5– of which < 30 years oldnumber (headcount)

Group

1,881

964

– of which 30 <= x <= 50

number (headcount)

Group

5,851

4,740

– of which > 50 years oldnumber (headcount)

Group

1,705

1,597

– of which belonging to vulnerable groups and/or minority group (e.g. Employeeswith disabilities)– of which belonging to vulnerable groups and/or minority group (e.g. Employeeswith disabilities)1

number (headcount)

Group

68

53

%

Group

16.5%

13.7%

Total number of Hourly

number (headcount)Group

32,94530,242– of which female

number (headcount)Group10,486

9,728– of which < 30 years oldnumber (headcount)

Group

2,364

1,909

– of which 30 <= x <= 50

number (headcount)

Group

6,211

5,668

– of which > 50 years oldnumber (headcount)

Group

1,911

2,151

– of which men

number (headcount)Group

22,45820,514– of which < 30 years oldnumber (headcount)

Group

5,224

4,024

– of which 30 <= x <= 50

number (headcount)Group

13,243

11,973– of which > 50 years oldnumber (headcount)

Group

3,991

4,517
–

– of which othernumber (headcount)

Group

1

– of which < 30 years oldnumber (headcount)

Group

–

–

– of which 30 <= x <= 50

number (headcount)

Group

1

–

– of which > 50 years oldnumber (headcount)

Group

–

–

– of which belonging to vulnerable groups and/or minority group (e.g. Employees with number (headcount)disabilities)– of which belonging to vulnerable groups and/or minority group (e.g. Employees with %disabilities)1

Group

321

323

Group

79.7%

83.5%

Total number of employees belonging to vulnerable groups and minority group(e.g. Employees with disabilities)

Group

403

387

number (headcount)

1 Percentage is calculated as total number of employees belonging to vulnerable groups/minority groups (e.g. Employees with disabilities).

MARELLI APPENDI X

97

Marelli Sustainability Report 2023

GRI – MATERIAL TOPICS – DIVERSITY AND INCLUSION CONTINUEDMARELLI APPENDIX
About This Report69

GRI INDICATORDISCLOSURES

Conclusions

69

Disclosure 405-2

Board of Directors

70

Ratio of basic salary and remuneration Chapter: Marelli People Sub-chapter: Diversity and Inclusion – Paragraph: Salary Alignmentof women to men
See page 61

Material topics

70

GRI

71

Independent practitioner’s
assurance report

100

Total1

Independent practitioner’s
assurance report on Marelli’s
Greenhouse Gas (GHG) Statement 102

For the latest news, visit our
website: marelli.com

1 Marelli started reporting this indicator in 2023.

LOCATION IN REPORT

Unit of measurement
number

Scope
Group

2022
–

2023
1.03

MARELLI APPENDI X

98

Marelli Sustainability Report 2023

GRI – MATERIAL TOPICS – PRODUCT SAFETY & QUALITYMARELLI APPENDIX
About This Report69

GRI INDICATORDISCLOSURESLOCATION IN REPORT

Conclusions

69

Management of material topics

Board of Directors

70

GRI 3: Material topics 2021
Disclosure 3-3

Chapter: Advanced Mobility and Innovation Sub-chapter: Product Safety and Quality: ElevatingStandards and Enhancing PerformanceSee pages 24–25

Material topics

70

GRI 416: Customer Health and Safety 2016

GRI

71

Disclosure 416-2

Independent practitioner’s
assurance report

100

Incidents of non-compliance concerning
the health and safety impacts of products
and services

Chapter: Advanced Mobility and Innovation Sub-chapter: Product Safety and Quality: ElevatingStandards and Enhancing PerformanceSee page 24
Unit of measurement
Scope
2022
2023
%
Group
–
0

Independent practitioner’s
assurance report on Marelli’s
Greenhouse Gas (GHG) Statement 102

Total number of incidents of non-compliance with regulations concerning the health and safety
impacts of products and services, resulting in a fine or penalty.
Total number of incidents of non-compliance with voluntary codes, concerning the health andsafety impacts of products and services.
GRI 417: Marketing and Labeling
Disclosure 417-1

Requirements for product and service
information and labeling

Percentage of significant products or categories of services treated or assessed for compliancewith internal procedures1
Disclosure 417-2

Incidents of non-compliance concerning
product and service information and labeling

Incidents of non-compliance with regulations resulting in a fine or penalty1
Incidents of non-compliance with regulations resulting in a warning
Incidents of non-compliance with voluntary codes
Disclosure 417-3
Incidents of non-compliance concerningmarketing communications

For the latest news, visit our
website: marelli.com

Incidents of non-compliance with regulations resulting in a fine or penalty1
Incidents of non-compliance with regulations resulting in a warning
Incidents of non-compliance with voluntary codes

1 Marelli started reporting this indicator in 2023.

%

Group

–

0

Chapter: Advanced Mobility and Innovation Sub-chapter: Product Safety and Quality: ElevatingStandards and Enhancing PerformanceSee pages 24–25
Unit of measurement
Scope
2022
2023
%
Group
–
100%
Chapter: Advanced Mobility and Innovation Sub-chapter: Product Safety and Quality: ElevatingStandards and Enhancing PerformanceSee page 24
Unit of measurement
Scope
2022
2023
numberGroup–0numberGroup–0numberGroup–
0
Chapter: Advanced Mobility and Innovation Sub-chapter: Product Safety and Quality: ElevatingStandards and Enhancing PerformanceSee page 24
Unit of measurement
Scope
2022
2023
numberGroup–0numberGroup–0numberGroup–
0

MARELLI APPENDI X

99

Marelli Sustainability Report 2023

GRI – MATERIAL TOPICS – DATA RESPONSIBILITYMARELLI APPENDIX
About This Report69

GRI INDICATORDISCLOSURESLOCATION IN REPORT

Conclusions

69

Management of material topics

Board of Directors

70

Chapter: Responsible Corporate Citizen Sub-chapter: Data Responsibility and Cybersecurity
See pages 46–47

Material topics

70

GRI 3: Material topics 2021
Disclosure 3-3
GRI 418: Customer Privacy

GRI

71

Disclosure 418-1

Independent practitioner’s
assurance report

100

Substantiated complaints concerning breaches of customer privacy and losses Chapter: Responsible Corporate Citizen Sub-chapter: Data Responsibilityof customer data
and Cybersecurity
See page 47
Unit of measurement
Scope
2022
2023
numberGroup
00

Independent practitioner’s
assurance report on Marelli’s
Greenhouse Gas (GHG) Statement 102

Substantiated complaints received fromoutside parties and substantiated by theorganization
Substantiated complaints from
regulatory bodies
Total number of identified leaks, thefts,
or losses of customer data
A brief statement if the organization has not
identified any substantiated complaints
Proven violations of events relating
to previous years

number

Group

0

0

number

Group

0

0

text

Group

–

numberGroup

0

In year 2023 we did not receive any
substantiated data breach complaint
from customers or authorities
0

GRI – MATERIAL TOPICS – RESPECT FOR HUMAN RIGHTS

For the latest news, visit our
website: marelli.com

GRI INDICATORDISCLOSURESLOCATION IN REPORTGRI 3: Material topics 2021
Disclosure 3-3

Management of material topics

Chapter: Responsible Corporate Citizen, Marelli People Sub-chapter: Respect for Human Rights,
Sustainability in the Supply Chain, Labor Relations – Paragraph: SA8000 Certification
See pages 43–45, 48–49 and 67

MARELLIMARELLIAPPENDIREPORTSX

100

Marelli Sustainability Report 2023

INDEPENDENT PRACTITIONER’S ASSURANCE REPORTMARELLI APPENDIX
About This Report

69

Conclusions

69

Board of Directors

70

Material topics

70

GRI

71

Independent practitioner’s
assurance report

100

Ernst & Young Associates LLP
Ground Floor, Plot no 67, Sector 44,
Institutional Area, Gurugram, Haryana122003

Tel: +91 124 464 4000
Fax: +91 124 464 4050
ey.comaccordance with the Criteria, and to issue a report. The nature, timing, and extent of theprocedures selected depend on our judgment, including an assessment of the risk of material
misstatement, whether due to fraud or error.

Independent practitioner’s assurance report

Independent practitioner’s
assurance report on Marelli’s
Greenhouse Gas (GHG) Statement 102

We believe that the evidence obtained is sufficient and appropriate to provide a basis for our
limited assurance conclusions.

Marelli Holdings Co., Ltd.
4-19Miyahara-Cho, 2-Chome, Kita-Ku,
Saitama City, Saitama 331-8501
Japan
Scope
We have been engaged by Marelli Holdings Co., Ltd. (hereafter “Marelli”) to perform a ‘limited
assurance engagement,’ as defined by International Standards on Assurance Engagements, here
after referred to as the engagement, to report on Marelli’s sustainability Key Performance
Indicators (KPIs) (the “Subject Matter”) contained in Marelli’s (the “Company’s) Global
Sustainability Report CY 2023 as of 28th May 2024 for the year ended 31st December 2023 forthe period from 01st January 2023 to 31st December 2023 as included in Annexure I.
Other than as described in the preceding paragraph, which sets out the scope of our engagement,
we did not perform assurance procedures on the remaining information included in the Global
Sustainability Report CY 2023, and accordingly, we do not express a conclusion on thisinformation.
Criteria applied by Marelli
In preparing the sustainability KPIs contained in the Global Sustainability Report CY 2023, Marelli
applied the GRI Standards (300 series: environmental and 400 series: social) of the Global
Reporting Initiative (Criteria). As a result, the subject matter information may not be suitable foranother purpose.
Marelli’s responsibilities
Marelli’s management is responsible for selecting the Criteria, and for presenting the sustainability
KPIs contained in the Global Sustainability Report CY 2023 in accordance with that Criteria, in allmaterial respects. This responsibility includes establishing and maintaining internal controls,
maintaining adequate records and making estimates that are relevant to the preparation of thesubject matter, such that it is free from material misstatement, whether due to fraud or error.
EY’s responsibilities
Our responsibility is to express a conclusion on the presentation of the Subject Matter based on
the evidence we have obtained.

For the latest news, visit our
website: marelli.com

We conducted our engagement in accordance with the International Standard for Assurance
Engagements Other Than Audits or Reviews of Historical Financial Information (‘ISAE 3000
(Revised)’) and the terms of reference for this engagement as agreed with Marelli on 12th
December 2023 and its subsequent amendment dated 11th May 2024. Those standards requirethat we plan and perform our engagement to express a conclusion on whether we are aware ofany material modifications that need to be made to the Subject Matter in order for it to be in1

Our independence and quality management
We have maintained our independence and confirm that we have met the requirements of theCode of Ethics for Professional Accountants issued by the International Ethics Standards Board
for Accountants, and have the required competencies and experience to conduct this assurance
engagement.
EY also applies International Standard on Quality Management 1, Quality Management for Firms
that Perform Audits or Reviews of Financial Statements, or Other Assurance or Related Services
engagements, which requires that we design, implement and operate a system of quality
management including policies or procedures regarding compliance with ethical requirements,
professional standards and applicable legal and regulatory requirements.
Description of procedures performed
Procedures performed in a limited assurance engagement vary in nature and timing from, andare less in extent than for a reasonable assurance engagement. Consequently, the level ofassurance obtained in a limited assurance engagement is substantially lower than the assurance
that would have been obtained had a reasonable assurance engagement been performed. Our
procedures were designed to obtain a limited level of assurance on which to base our conclusionand do not provide all the evidence that would be required to provide a reasonable level ofassurance.
Although we considered the effectiveness of management’s internal controls when determining
the nature and extent of our procedures, our assurance engagement was not designed to provide
assurance on internal controls. Our procedures did not include testing controls or performing
procedures relating to checking aggregation or calculation of data within IT systems.
A limited assurance engagement consists of making enquiries, primarily of persons responsible
for preparing the Global Sustainability Report CY 2023 and related information, and applying
analytical and other appropriate procedures.
Our procedures included:• Checking the standard disclosures regarding the company’s material sustainability
aspects contained in the Global Sustainability Report CY 2023;• Checking of consistency of data / information within the Global Sustainability Report CY
2023;• Carry out assurance including checking of the sample data and information reported at
the following plants and corporate headquarter at Corbetta, Italy.

2MARELLI APPENDI X

101

Marelli Sustainability Report 2023

INDEPENDENT PRACTITIONER’S ASSURANCE REPORT CONTINUEDMARELLI APPENDIX
About This Report

69

Conclusions

69

Board of Directors

70

Material topics

70

GRI

71

Independent practitioner’s
assurance report

100

Independent practitioner’s
assurance report on Marelli’s
Greenhouse Gas (GHG) Statement 102

1. AL Juarez plant 2 AL Mexico
2. SHA Lavras RD Brazil
3. ELS Guangzhou ELS China
4. ELS Kechnec ELS Slovakia
5. PT Modugno PT Italy
6. SS Sulmona RD Italy
7. AL Wuhu AL China•

8. AL Sosnoweic AL Poland
9. IBU AG Plastics (PIVA) IE Mexico
10. THS JGP (Gunma Plant) THS Japan
11. PT Delhi PT India
12. EPT Modugno EPT Italy
13. GTS JGP (Gunma Plant) GTS Japan

Annexure I (Subject Matter)

Execution of audit trail of selected claims and data streams to determine the level ofaccuracy in collection, transcription and aggregation processes followed;

We also performed such other procedures as we considered necessary in the circumstances.
The assurance scope excludes:
•
•
•
•
•

Data and information outside the defined reporting period of: 01st January 2023 to 31st
December 2023
Data and information on economic and financial performance of the Company;
Data, statements and claims already available in the public domain through Global
Sustainability Report, or other sources;
The Company's statements that describe the expression of opinion, belief, inference,
aspiration, expectation, aim or future intention;
The Company’s compliance with regulations, acts, guidelines with respect to various
regulatory agencies and other legal matters.

Conclusion
Based on our procedures and the evidence obtained, we are not aware of any material
modifications that should be made to the sustainability KPIs contained in the Global Sustainability
Report CY 2023 as of 28th May 2024, for the period from 01st January 2023 to 31st December
2023 in order for it to be in accordance with the Criteria.
Ernst & Young Associates LLP
28th May 2024
Gurugram, Haryana
India

For the latest news, visit our
website: marelli.com

3

S.No.
1
2

GRI
GRI 301-1
GRI 303-3

3

GRI 304-1

4
5
6
7
8
9
10
11

GRI 306-1
GRI 306-2
GRI 306-4
GRI 306-5
GRI 308-2
GRI 402-1
GRI 405-2
GRI 406-1

12

GRI 407-1

13
14

GRI 414-2
GRI 417-1

15

GRI 417-2

16
17
18
19
20

GRI 417-3
GRI 302-1
GRI 302-3
GRI 303-4
GRI 303-5

21

GRI 305-7

22

GRI 401-1

23

GRI 401-2

24
25
26
27

GRI 401-3
GRI 403-1
GRI 403-10
GRI 403-6

28

GRI 403-7

29
30
31

GRI 403-9
GRI 404-1
GRI 404-2

32

GRI 404-3

33

GRI 405-1

34

GRI 416-2

35

GRI 418-1

Indicators
Materials used by weight
Water withdrawal
Operational sites owned, leased, managed in, or adjacent to, protectedareas and areas of high biodiversity value outside protected areas
Waste generation and significant waste-related impacts
Management of significant waste related impacts
Waste diverted from disposal
Waste directed to disposal
Negative environmental impacts in the supply chain and actions taken
Minimum notice periods regarding operational changes
Ratio of basic salary and remuneration of women to men
Incidents of discrimination and corrective actions taken
Operations and suppliers in which the right to freedom of association andcollective bargaining may be at risk
Negative social impacts in the supply chain and actions taken
Requirements for product and service information and labeling
Incidents of non-compliance concerning product and service informationand labeling
Incidents of non-compliance concerning marketing communications
Energy consumption within the organization
Energy Intensity
Water discharge
Water consumption
Nitrogen oxides (NOx), sulfur oxides (SOx), and other significant air
emissions
New employee hires and employee turnover
Benefits provided to full-time employees that are not provided to temporary
or part time employees
Parental leave
Occupational health and safety management system
Work-related ill health
Promotion of worker healthPrevention and mitigation of occupational health and safety impacts directly
linked by business relationships
Work-related injuries
Average hours of training per year per employee
Programs for upgrading employee skills and transition assistance programs
Percentage of employees receiving regular performance and careerdevelopment reviews
Diversity of governance bodies and employees
Incidents of non-compliance concerning the health and safety impacts ofproducts and services
Substantiated complaints concerning breaches of customer privacy andlosses of customer data
4

MARELLI APPENDI X

102

Marelli Sustainability Report 2023

INDEPENDENT PRACTITIONER’S ASSURANCE REPORT ON MARELLI’S GREENHOUSE GAS (GHG) STATEMENTMARELLI APPENDIX
About This Report

69

Conclusions

69

Board of Directors

70

Material topics

70

GRI

71

Independent practitioner’s
assurance report

100

Independent practitioner’s
assurance report on Marelli’s
Greenhouse Gas (GHG) Statement 102

Ernst & Young Associates LLP
Ground Floor, Plot no 67, Sector 44,
Institutional Area, Gurugram, Haryana122003

Tel: +91 124 464 4000
Fax: +91 124 464 4050
ey.comIndependent practitioner’s assurance report on Marelli’s Greenhouse Gas (GHG)
Statement

Our independence and quality management
We have maintained our independence and confirm that we have met the requirements of theCode of Ethics for Professional Accountants issued by the International Ethics Standards Board
for Accountants, and have the required competencies and experience to conduct this assurance
review.

Marelli Holdings Co., Ltd.
4-19Miyahara-Cho, 2-Chome, Kita-Ku,
Saitama City, Saitama 331-8501
Japan
Scope
We have been engaged by Marelli Holdings Co. Ltd. to perform a ‘limited assurance engagement,’
as defined by International Standards on Assurance Engagements , here after referred to as theengagement, to report on the accompanying GHG statement of Marelli Holdings Co. Ltd. as of
28th May 2024 for the period from 01st January 2023 to 31st December 2023, comprising of GHG
emissions related Key Performance Indicators (KPIs) included in the Greenhouse Gas (GHG)
Inventory Report (the “Subject Matter”) detailed in Annexure I.
Other than as described in the preceding paragraph, which sets out the scope of our engagement,
we did not perform assurance procedures on the remaining information included in the Report,
and accordingly, we do not express a conclusion on this information.
Criteria applied by Marelli Holdings Co. Ltd.
In preparing GHG Inventory Report CY 2023, Marelli Holdings Co. Ltd. applied the World
Business Council for Sustainable Development’s (WBCSD) GHG Protocol Corporate Accounting
and Reporting Standard (Criteria). The Criteria were specifically designed by WBCSD for theestimation of GHG emissions related KPIs included in the GHG Inventory Report CY 2023
(detailed in Annexure I); As a result, the subject matter information may not be suitable for anotherpurpose.
Marelli Holdings Co. Ltd.’s responsibilities
Marelli Holdings Co. Ltd.’s management is responsible for selecting the Criteria, and forpresenting the GHG emissions related KPIs (as included in Annexure I) in accordance with that
Criteria, in all material respects. This responsibility includes establishing and maintaining internal
controls, maintaining adequate records and making estimates that are relevant to the preparationof the GHG statement, such that it is free from material misstatement, whether due to fraud or
error.

For the latest news, visit our
website: marelli.com

need to be made to the Subject Matter in order for it to be in accordance with the Criteria, and toissue a report. The nature, timing, and extent of the procedures selected depend on our judgment,
including an assessment of the risk of material misstatement, whether due to fraud or error. We
believe that the evidence obtained is sufficient and appropriate to provide a basis for our limited
assurance conclusion.

EY’s responsibilities
Our responsibility is to express a conclusion on the presentation of the Subject Matter based on
the evidence we have obtained.
Our engagement was conducted in accordance with the International Standard for Assurance
Engagements on Greenhouse Gas Statements (‘ISAE 3410’), and the terms of reference for thisengagement as agreed with Marelli Holdings Co. Ltd. on 12th December 2023 and its subsequent
amendment dated 11th May 2024. Those standards require that we plan and perform ourengagement to express a conclusion on whether we are aware of any material modifications that1

EY also applies International Standard on Quality Management 1, Quality Management for Firms
that Perform Audits or Reviews of Financial Statements, or Other Assurance or Related Services
engagements, which requires that we design, implement and operate a system of quality
management including policies or procedures regarding compliance with ethical requirements,
professional standards and applicable legal and regulatory requirements.
Description of procedures performed
Procedures performed in a limited assurance engagement vary in nature and timing from, andare less in extent than for a reasonable assurance engagement. Consequently the level ofassurance obtained in a limited assurance engagement is substantially lower than the assurance
that would have been obtained had a reasonable assurance engagement been performed. Our
procedures were designed to obtain a limited level of assurance on which to base our conclusionand do not provide all the evidence that would be required to provide a reasonable level ofassurance.
Although we considered the effectiveness of management’s internal controls when determining
the nature and extent of our procedures, our assurance engagement was not designed to provide
assurance on internal controls. Our procedures did not include testing controls or performing
procedures relating to checking aggregation or calculation of data within IT systems. The Green
House Gas quantification process is subject to scientific uncertainty, which arises because ofincomplete scientific knowledge about the measurement of GHGs. Additionally, GHG procedures
are subject to estimation (or measurement) uncertainty resulting from the measurement andcalculation processes used to quantify emissions within the bounds of existing scientificknowledge.
A limited assurance engagement consists of making enquiries, primarily of persons responsible
for preparing the GHG Inventory Report CY 2023 and related information, and applying analyticaland other relevant procedures.
Our procedures included:••

Conducted interviews with select personnel and corporate team to understand the process
for collecting, collating, and reporting the subject matter as per GHG Protocol Corporate
Accounting and Reporting Standard.
Checking of data for Marelli Holdings Co. Ltd. on a selective test basis for the following
locations and through consultations with the plant and corporate sustainability team:2

MARELLI APPENDI X

INDEPENDENT PRACTITIONER’S ASSURANCE REPORT ON MARELLI’S GREENHOUSE GAS (GHG) STATEMENT CONTINUEDMARELLI APPENDIX
About This Report

69

Conclusions

69

Board of Directors

70

Material topics

70

GRI

71

Independent practitioner’s
assurance report

103

Marelli Sustainability Report 2023

1. AL Juarez plant 2 AL Mexico
2. SHA Lavras RD Brazil
3. ELS Guangzhou ELS China
4. ELS Kechnec ELS Slovakia
5. PT Modugno PT Italy
6. SS Sulmona RD Italy
7. AL Wuhu AL China

100

Independent practitioner’s
assurance report on Marelli’s
Greenhouse Gas (GHG) Statement 102•••

8. AL Sosnoweic AL Poland
9. IBU AG Plastics (PIVA) IE Mexico
10. THS JGP (Gunma Plant) THS Japan
11. PT Delhi PT India
12. EPT Modugno EPT Italy
13. GTS JGP (Gunma Plant) GTS Japan

Annexure I (Subject Matter)

Checked calculations and methodologies outlined in the Criteria;
Undertook analytical procedures to check the reasonableness of the data;
Execution of an audit trail of claims and data streams, on a selective test basis, to determine
the level of accuracy in the collection, transcription, and aggregation processes followed.

S.No.
1
2

GRI
305-1
305-2

Direct Scope 1 GHG emission
Indirect Scope 2 GHG emission

Indicators

3

305-4

GHG emissions intensity

4

305-5

Reduction of GHG emissions

We also performed such other procedures as we considered necessary in the circumstances.
The assurance scope excludes:• Data and information outside the defined reporting period-01st January 2023 to 31st
December 2023
• Data and information on the economic and financial performance of the Company;• Data, statements, and claims already available in the public domain through Global
Sustainability Report, or other sources;• The Company's statements that describe the expression of opinion, belief, inference,
aspiration, expectation, aim, or future intention;• The Company’s compliance with regulations, acts, and guidelines concerning various
regulatory agencies and other legal matters.
Conclusion
Based on our procedures and the evidence obtained, we are not aware of any material
modifications that should be made to the GHG emissions related KPIs considered in the GHG
Inventory Report CY 2023 as of 28th May 2024 for the period from 01st January 2023 to 31st
December 2023 in order for it to be in accordance with the Criteria.
Ernst & Young Associates LLP
28th May 2024
Gurugram, Haryana
India

For the latest news, visit our
website: marelli.com

34

MARELLI APPENDI X

MARELLI APPENDIX
About This Report

69

Conclusions

69

Board of Directors

70

Material topics

70

GRI

71

Independent practitioner’s
assurance report

100

Independent practitioner’s
assurance report on Marelli’s
Greenhouse Gas (GHG) Statement 102

For the latest news, visit our
website: marelli.com

Marelli Sustainability Report 2023