Where innovation
meets sustainability
Sustainability Report 2022

Overview

Advanced mobility
and our innovation

Sustainabilityof our operations

Responsible
corporate citizen

Marelli people

About this report

Transforming the futureof mobility for a safer, greener
and better‑connected world
Marelli is one of the world’s leading global independent suppliers in the automotive
sector. With a strong and established track record in innovation and manufacturing
excellence, our mission is to transform the future of mobility through working withcustomers and partners to create a safer, greener, and better-connected world.

Our mission

Our attributes

To transform the future ofmobility through working
with customers and partners
to create a safer, greener, andbetter‑connected world.

Our business

Drive results

Accountable

We are determined to achieve
impactful and sustainable results

We own the responsibility
for actions and resultsof our organization

Entrepreneurial

Aware

50,368
employees
worldwide1

170

countries coveredby our businessWe take the lead to invest in our
future with an outside-in view

We are conscious of the impactof our behaviors and are authentic
in our interactions

Inclusive

Innovative

We engage the hearts and mindsof our diverse team to achieve
stretch goals

We are willing to do it differently
to achieve a better result

JPY 1,337Bn
generated in revenues(€9.7Bn) in 2022

169

sites included in the
Sustainability Report1

At the end of 2022.

About this report
This is our fourth Sustainability Report (‘this Report’). The Report covers the period from January 1, 2022 to December 31,
2022 (the ‘reporting period’) and captures Marelli’s sustainability achievements in the reporting period. It’s published in
English and Japanese. This Report has been prepared considering the GRI Standards.
Read more on page 55

1

Marelli Sustainability Report 2022

Overview

Advanced mobility
and our innovation

Sustainabilityof our operations

Responsible
corporate citizen

Marelli people

About this report

See more pictures of activities atwww.instagram.com/marellitecheay shown at thDiorama Displ
2023
s,
ga
Ve
s
La
l
Wynn Hote

Cherry blos
soms from ourJapanese #Mar
elliPeople

Contents
Opening/About Marelli
Opening letter from CEO
About MarelliSustainability highlights
Sustainability at MarelliMateriality assessment
Stakeholder engagement

1
3
5
6
7
9
11

Advanced mobility
and our innovation
Technology vision ofmobility megatrends
Innovation strategy
Innovating for sustainability

13
14
17
19

Sustainability of
our operations21
Climate change risks andopportunities management
22
Climate change action& energy management
22
Environmental
management25
Water28
Occupational health& safety
30
Product safety & quality
32

at the Annual#Marelli teamit, inmm
Sugsin
PurchaSouthfield

Responsible corporate
citizen35
Governance36
Compliance38
Respect for human rights
39
Risk management
40
Data responsibility
41
Sustainability insupply chain
42

To find out more please
go to marelli.com

About this report
Materiality matrix review
Table of GRI standards
About this report

55
56
57
75

#Marelli commun
ity in our R&D
center in Cluj, Ro
mania

Marelli people
Employee engagement
Employee training
and development
Diversity & Inclusion
Labor relations
Employee well-beingSocial contribution marelli.com

45
46
47
49
51
52
53
2

Overview

Advanced mobility
and our innovation

Sustainabilityof our operations

Responsible
corporate citizen

Marelli people

About this report

Alwaysinnovating
Making a difference to create
long‑term value for all.
@Marelli we are on a sustainability
journey, our people are partneringwith customers and suppliers toaddress the urgency of climatechange, the importance of social
equity and the opportunities ofa circular economy along ourvalue chain.
Our drive for operational efficiency,
supply chain integrity, innovation andgrowth are deeply rooted insustainability.
During 2022, we refined our priorities
and improved ESG measurability toinclude our supply chain. ESG is now
more embedded in our governanceand a standing agenda item at ourboard meetings.

Climate action

We are working toward net-zerocommitments for our operations andsupply chains by at latest 2045 and aredefining sustainability targets for all
projects along the life cycle. Close
collaboration with our customers andsuppliers is critical.
Our next priorities are to complete arobust carbon footprint assessmentwith more accurate data on our
upstream Scope 3 emissions, and tocommit to the Science-Based Targets
Initiative. We are currently also
conducting a climate change risk andopportunity assessment. We want tounderstand how climate change andwater risks and opportunities impact

our business in alignment with therecommendations of the Task Forceon Climate-related Financial
Disclosures (TCFD).

Circular economy

We are committed to designing forsustainability – creating products thatuse fewer resources, are built to last
and will be reused. We are engaging
suppliers to develop solutions for a
resource-limited planet. In 2022,
Marelli also introduced a new
Innovation Management Process tointegrate life cycle thinking from theearliest stages of product design andin 2023 we will implement Design for
Sustainability criteria. We are also
committed to decoupling waste fromgrowth in our operations.

Social impact

Human rights, fair labor conditions,health and safety as well as ethics arefundamental to all we do. In 2022, 54%of our sites were certified ISO 45001
compliant for Operational Health &Safety and we plan to exceed 90% by2025. We are also relying on Artificial
Intelligence to scan through morethan 10,000 contracts with suppliers,
customers, and other commercial
partners, to detect instances ofsocial risk.

ESG measurability

Comparable measurability is criticalto all our operations and we work toalign our practices to main ESG

FOURTH G
lobal Mar
Event inIndia, Dec elli Women
ember 20
22

standards1. In early 2023, we becamea signatory of the United Nations
Global Compact and committed
to its principles. We are committed
to ensuring that nominated suppliers
comply with defined ESG standards
and we are partnering with themon defining shared plans to drive
progress and continuous
improvement in ESG together.

2022 from a sustainability
perspective
The global semi-conductor shortage
emphasized the importance of supply
chain resilience2. Sustainability builds
a more resilient supply chain andsupplier localization is a great
example: in 2022, we piloted an
initiative in Brazil to increase local
supplier capacity for metalcomponents. This reduced exposure
to exchange rate fluctuation and leadtimes making us more responsive tochanges in market demand. It also
helped reduce transport related CO2
emissions. Of course, ensuring ESG
compliance of our localized supply
chains is key.
In 2022, we also made good progresson our plant consumption KPIs – forexample, we increased renewableelectricity to 26.5%, from 13.9% in
2021, and reduced water withdrawal
intensity (liters per worked hours) by
11% in the same period.

1

The current report follows GRI-2021, GHG Protocol and the recommendations from TCFD. We rely on SDGs (for internal and public policies) and havestarted to consider CSRD by implementing the double materiality concept. Internally we are preparing our report process to address the SASB
recommendations for auto-parts.

2

The COVID-19 pandemic increased the demand for semiconductor chips used in electronic devices, which caused supply chain disruptions in theautomotive industry that uses these chips in several products.

3

Marelli Sustainability Report 2022

Overview

Advanced mobility
and our innovation

People are another key priority. In
2022 we created the Women @Marelli
network, which marked the start ofbroader diversity and inclusion
initiatives. We have set a target of 25%
women in leadership roles (director
and above) by 2025 and establishedGen M – a group of high potential
Marelli team members who are
working with our Group Executive
Committee to define Marelli’s path into
the future and our purpose.

Innovation as key enabler
Innovation is about doing things
differently to achieve better results.
Co-Creating What’s Next with ourcustomers and partners evolved as a
strategic priority in 2022, and we are
passionate about integrating
sustainability in our new technologies
and solutions. Let me share an
operational example:

Sustainabilityof our operations

Responsible
corporate citizen

Our new vehicle domain control units
reduce a vehicle’s weight and fuelconsumption compared to older
technologies. Its production
consumes less carbon dioxide
equivalents and requires lesscomponents, meaning less shipments.
We are proud to be leading the field inthis area.

Marelli people

Highlights of the year54%

sites certified ISO
45001 compliant forOperational Health &Safety in 2022

>90%

Operationalizing sustainability isfundamental to Marelli, informing
what products to develop, how
we make them and who is in our
supply chain.
We have a long way to go, but letme say a big thank you to the entire
team @Marelli and all our partners
for the progress we are making andinvite you to join us on our journey@Marelli speed.
Yours sincerely,David Slump, President andCEO Marelli

About this reportsites certified
by 2025

26.5%

increase in renewableelectricity use

11%

reduction in water
withdrawal intensity

Co-Creating What’s Next with ourcustomers and partners evolved as a
strategic priority in 2022, and we are
passionate about integrating sustainability
in our new technologies and solutions.

marelli.com

4Overview

Advanced mobility
and our innovation

Sustainabilityof our operations

Responsible
corporate citizen

Marelli people

About this report

About Marelli
In 2019, two leading automotive suppliers, Magneti Marelli and Calsonic-Kansei,
joined to form one global brand: Marelli.

Our goal is to change thefuture of mobility byworking with our customers
and partners to create asafer, greener, and moreconnected world. Marelli
supplies all major
automotive manufacturers
in Asia, Europe, and Northand South America.

Our business areas are automotive
lighting and sensing, e-powertrain,
thermal solutions, electronics, green
technology solutions, interior
experience, powertrain, ride dynamics,
motorsport, and aftermarket business.
On January 30th, 2023, Marelli signed
an agreement with First Brands Groupto acquire our Independent
Aftermarket division (‘Aftermarket
business’). At the end of 2022, Marelli
employed 50,368 people worldwide,
generating revenues of JPY 1.337 Bn(EUR 9.7 Bn) in 2022.
Data included in this edition of the
Sustainability Report was monitored
and tracked from 169 sites wholly or
partially controlled by Marelli, including

142 manufacturing sites and 27
non-productive sites. Exceptions apply
to: data on energy consumption,scope 1 and 2 greenhouse gas (GHG)
emissions, water use, waste
production, and ISO 14001 that wascollected for all sites where Marelli has
full control (113 sites). Learn more
about how Marelli's reporting
boundary is defined on page 75.
In future years we will work to increase
the scope and perimeter of our datacollection, although this will bedependent upon the availability of thedata and its accuracy.

MARELLI’S DI V ISIONSElectric
Powertrain1
Green technologies
solutionsElectronicsystems
Interior
experience

Motorsport

1

5

Powertrain1
Ride
dynamics

Automotive lighting
and Sensing
Thermalsolutions

Aftermarket

The creation of Marelli Propulsion Solutions division was announced in May 2023. The new division combines Powertrain and Electric Powertrain
businesses and plan to support the electrification journey of customers with co-created innovation. Propulsion Solutions focuses on softwareenabled components and systems like battery management systems and smart actuators as well as on vehicle software architecture, e.g. vehicle
domain controls.

Marelli Sustainability Report 2022

Overview

Advanced mobility
and our innovation

Sustainabilityof our operations

Responsible
corporate citizen

Marelli people

About this report

Sustainability highlights
Advanced mobility
and innovation

Sustainability of
our operations

JPY 260 Bn

-6.3%

-11%

26.5%

ECOVADIS SCORE

Investing EUR 1.6 bn in innovation
over five years – building on existing
capabilities with exciting new centers
in India and China

JPY 68 Bn
R&D investment
in 2022: JPY 68 Bn(EUR 0.5 Bn)

Multiple co-created ideas
and products with various partners,
including customers, universities,
research centers, start-ups, and otherindustrial players through researchgroups and joint projects

GHG emission
intensity reductionin Scope 1 andScope 2 (market based)compared to 2021 restatedsupply of renewableelectricity increased
from 13.9% in 2021

84.5%

waste recycled

in water withdrawal intensity
compared to 2021 (liters/
worked hours)

65/1001

in 2022

B scoreClimate Change and Water
Security Carbon Disclosure
Project (CDP)

33

customer awards received in 2022
Learn more about Advanced mobility
and innovation on page 13

Learn more about Sustainability in our operations on page 55
1	At the time of publication of this report, the Ecovadis evaluation process for 2023 is ongoing.

Responsible
corporate citizen

Marelli people

19

25,000Information security
certifications achievedSince 2022, ESG topics have been
included as part of the agenda forevery Board meetingpeople benefited througha wide range of corporatesocial responsibility initiatives

63%of employees
received regularperformance andcareer development
reviews

All direct material suppliers aremonitored on their resiliency
and ESG performance25%

In 2022, the entire purchasing
department (1,019 users) was
assigned to receive training onsustainability procurement

Learn more about Marelli people on page 45

women in leadership roles(director and above) by 2025

Learn more about Marelli asa Responsible corporate citizen
on page 35

marelli.com

6

Overview

Advanced mobility
and our innovation

Sustainabilityof our operations

Responsible
corporate citizen

Marelli people

About this report

Sustainability at Marelli
Through Marelli’s commitment to innovation and sustainability, progress moves
at light speed, with constant improvement as the driving force.
Our strategy: Co-creating what’s next for sustainability
At Marelli, we have developed a sustainability framework with three main pillars that illustrate our pathway
to a sustainable future: innovation, social impact, ESG.

Our dimensions:

Climate action

1
Innovation

Co-create what’s next insustainability with our customers,
suppliers, employees and partners

OPER AT IONS AND SUPPLY CHA IN

Net-Zero commitments by 2045 for
operations and supply chain

2
PRODUC T AND INNOVAT ION

Social impact

Sustainability targets
for all projects along the
Project Life Cycle (PLC)

Doing what’s right in human rights,
ethics and compliance, labor
conditions and health and safety

1

3

2

3

PRODUC T AND INNOVAT ION

ESGDesign for Sustainability:
Made to use less resources,
built to lastMeasurable and comparable
progress using global frameworks
CDP1 Climate Change and Water Security
standards – B ratings for both in 2022

OPER AT IONS AND SUPPLY CHA IN

Decouple waste from
economic growth

CSRD2 / GRI 3 / SASB 4/ TCFD5 reporting frameworks
United Nations Global Compact – Compliance confirmed
Ecovadis1

Carbon Disclosure Project.

2

Corporate Sustainability Reporting Directive.

3

Global Reporting Initiative.

4

Sustainability Accounting Standards Board.

5

Task Force on Climate-Related Financial Disclosures.

Circu
lar economy

Our 2025 goals
We set a series of internal targets to be achieved by 2025 measured as improvements over our 2021 baseline:

-30%

-10%

-10%

>20%

75%

80%

-14%

80%

25%

>90%

CO2e emissions
in all scopesof nominatedsuppliers coveredby ESG assessment

7

ordinary waste

in water intensity(Liters/worked
hours)

Marelli Sustainability Report 2022

in energy intensity(MJ/worked hours)of renewableelectricity

recycled /sustainable
content for Resins

women inleadership rolesof direct materials
suppliers’ plants
nominated with
ISO 14001

of production
sites certified
under ISO 45001

Overview

Advanced mobility
and our innovation

Sustainabilityof our operations

Responsible
corporate citizen

Marelli people

About this report

Performance highlights
Our vision for sustainability is about building resilient
operations with less dependency on market fluctuations.
We aim to do this through innovation that ensures our
products are best in class for our customers while having
fewer impacts on the environment. In September 2022, theagenda for our third Innovation Council meeting was fully
dedicated to sustainability. During this session, all theDivisions, along with the Manufacturing and Purchasing
functions, identified risks, opportunities, projects,

and cutting-edge innovation initiatives aroundenvironmental sustainability. As a result, we also
implemented a new Innovation Management Process
in 2022 that incorporates sustainability criteria, including
circularity, into all new product ideas and processes.
Our innovations are based on the principle of “Design for
Sustainability” to ensure that the environmental and social
impacts of our products are considered from the earliest
stages of the product lifecycle.

Awards and recognitions
Customer Recognitions
Customer

Award

Country

Plant

General Motors
General Motors
General Motors
Isuzu
Isuzu
NissanNissanNissanNissanStellantis
Stellantis
Stellantis
Nissan Shatai Corporation

Supplier Quality Excellence Award
Supplier Quality Excellence Award
Supplier Quality Excellence Award
Quality and Delivery Award
Quality and Delivery Award
MY22 Nissan Pathfinder and Infiniti QX60 Launches
Most Improved Quality Award
Regional Quality Award Finalist
Recognition to Contributing to Nissan to be Quality Leaders in the Market
Major Kaizen Award
Certificate of Recognition
Best 2021 supplier”Zero PPM and Zero Warranty”
Development Contribution Award

BrazilBrazil
India
ThailandThailandUSA
USA, Mexico
Thailand
USA, Mexico
TurkeyBrazilIndia
Japan

AmparoMaua
Chennai
ChonburiAmata, Bangplee
Smyrna, Lewisburg
All plants in USA & Mexico
Amata
San Francisco
Bursa
GoianaMotherson AL&S India
Thermal Solutions,Electronics Systems
Interior Experience in Resende
Thermal Solutions
Thermal Solutions
Wuxi
Xiangyang
Changchun
FoshanFoshanGuangzhou
Wuhu
Wuhu
Foshan (AL&S)
Foshan (AL&S)
Wuhu
Guangzhou
Guangzhou
Guangzhou
Zhengzhou
Wuxi
XiaoganNissanHighest level (L1) in quality performance supplier ranking
Aisin (Toyota Gr.)
Superior Value Improvement Award 2022
Aisin (Toyota Gr.)
Superior VA Award 2022
Chery Jaguar Land Rover
Excellent Quality Award & JLRQ Award
Dongfeng Nissan
Excellent Supply Award
FAW – Volkswagen
Excellent Warranty Cooperation Supplier
FAW – Volkswagen
Excellent Quality Partner of the Year
FAW – Volkswagen
First Prize at Supplier Quality And Technology Competition
GAC
Supplier of Excellent Quality
NIO
Nio Quality Premium Partner Award (NQPP)
SAIC General Motors
Quality Contribution Award
Honda (GHAC)
Excellent Quality Award
Honda (GHAC)
Excellent Supply Award
GAC
Endeavor Supporting Award
Dongfeng Nissan
Excellent Quality of the year
Dongfeng Nissan
The Best Technical Contribution Award
Nissan China Investment Co. The Best Technical Cooperation Award
Zhengzhou Nissan
Excellent Delivery Award
Zhengzhou Nissan
Excellent Supply Award
Chang‘an2022 concerned efforts award

Brazil
Japan
Japan
China
China
China
China
China
China
China
China
China
China
China
China
China
China
China
China
China

PledgesCustomer

PledgeGeneral Motors

Marelli signed the “Environmental, Social & Governance (ESG) Partnership Pledge: Collaboration for enhanced sustainability
and human rights around the world” in October 2022

External recognitions
Recognition

From

To

3Rs Waste Management Award and Zero Landfill Award

Department of Industrial Works, Ministry of Industry ofThailandAirports Brazil – Viracopos (in Campinas, São Paulo)

Marelli Thailand

Viracopos Excellence Logistics Award, Logistics Chain category
in the TC-6 Automotive Special Regimes segment
Platinum level (4th consecutive year), 38 million hours without
accidents.
Platinum Kurumin Certification (top 500 childcare support
companies)
Top 30 companies in the high-tech supply chain based on the
Resilinc R Score®
2022 CES Innovation Award Honoree for Indoor Air Quality (IAQ)
Purification System
LinkedIn Top Companies Brazil 2022

Marelli Electronics
System South America
Marelli Thailand

Thailand Institute for Occupational Safety, Health andEnvironment Promotion (T-OHS), delivered by General Prayut
Chan-o-cha, Prime Minister of the Kingdom of Thailand
Ministry of Health, Labor and Welfare
Marelli Japan
Resilinc

Marelli Holdings

CES

Marelli Holdings

LinkedIn

Marelli Brazil

marelli.com

8

Overview

Advanced mobility
and our innovation

Sustainabilityof our operations

Responsible
corporate citizen

Marelli people

About this report

Materiality assessment
Conducting a materiality assessment is a formal way of engaging with key
stakeholders to evaluate the ESG topics that represent risks and opportunities
to our business. The concept of materiality has been rapidly evolving andcompanies not only need to understand the impacts of these topics on thebusiness but also how the business itself affects the world around it.

In 2019, when Magneti Marelli and Calsonic-Kansei
merged, Marelli’s newly established sustainability
governance structure undertook its first robust materiality
assessment, which identified 17 relevant ESG topics.
Building on the previous assessment,
in 2022 we reviewed and updated ourmateriality matrix to align with thehighest ESG market standards. Overall,the 2022 assessment yielded a few
differences from the previous analysis,
and we have found that most topics
that were identified in 2019 are still
considered to be material to ourbusiness in addition to a few topics
that we identified during our mostrecent assessment.

Our 2022 materiality review processprovided a platform to engage with our
key stakeholders and senior leaders togain their perspectives on key issues
and continue to build ownership forour sustainability initiatives andstrategy more broadly. Moreover, it
allowed for the prioritization of material
topics based on the potential impact
on Marelli’s enterprise value. This
analysis allowed us to sharpen ouractions, define our short-term goals,
and establish more robust long-termgoals and action plans.

In developing our 2019 materiality
matrix, we considered the prioritiesof our internal and external
stakeholders, including 6,500
employees and 19 major customers.

6,500
employees

19major customers

Materiality process conducted in 2022

1

2

Mapping existingmaterial topics against
standards and trends:

Building on our 2019 exercise, we mapped
our material topics against international
ESG standards such as SASB and MSCI for
auto parts manufacturers1. The definitionof Marelli’s topics has been integrated withemerging sectoral trends and thenreordered according to the threesustainability dimensions: Environment,
Social, and Governance.

Stakeholder Engagement,(Y-axis) we gathered
external perspectives by:• Surveying our eight top customers insales in Japan, China, Korea, EU, andNorth America to gain insight into their
ESG strategy;• Engaging with the European Associationof Automotive Suppliers (CLEPA) tradeassociation to understand emerging andfuture European regulations affecting
the industry;• Conducting interviews with members of
our sole shareholder to ensure that ourroadmap fulfills our investors’ priorities
and expectations; and• Consulting the materiality matrixes
disclosed by our competitors.
The inputs from our stakeholders wereconsolidated on a scorecard on Y-axis(Impact on Stakeholders).

1

9

3

Impact on enterprisevalue (X-axis) represents
both vulnerability andimpact on our company

To assess the impact on enterprise value,
the CEO and eight members of the Group
Executive Committee (GEC) who also sit on
the Sustainability Council established somecriteria to assess the impact of eachmaterial topic on Marelli’s enterprise value:
Frequency/impact of material topics
on enterprise value: for each of thematerial topics identified, an assessment
was carried out by the executives of theirpotential impact on enterprise value,classifying them in three categories:
low, medium and high impact topics.
The final matrix was then approved by the
Board via the Nomination, Governance andHuman Capital Committee. Moving forward,
we will establish a financial baseline andnominate an executive owner for each topic.

The Sustainability Accounting Standards Board (SASB) standards for auto parts and ESG ratings system Morgan Stanley Capital International (MSCI)
have been considered in the identification of sectoral trends.

Marelli Sustainability Report 2022

Advanced mobility
and our innovation

Overview

Sustainabilityof our operations

Responsible
corporate citizen

Marelli people

About this report

Our strategy and material topics
While reviewing our materiality matrix,
we have added three new material
topics based on our 2022 assessment
i.e. Material sourcing, Waste
Management and Competitive Behavior.

Based on the consolidated inputs ofeach stakeholder group, we prioritized
topics. This is reflected in a newmateriality matrix organized into groupthat define our actions for each topic:

Concerning the 17 material topics
identified in 2019, six topics have been
confirmed, nine topics have beenrenamed (e.g. “Climate change” is now“Climate change & action/Energy
management”) or split/grouped into
new topics either to align with ESG
standards/regulations or to reflect
requests from our stakeholders.

• Prioritize: defining KPIs and setting
targets. Targets have already been
defined for nine measurable topics:
Climate Change & Action/Energy
Management, Circular Economy
Design, Material Sourcing, Diversity& Inclusion, Sustainability in Supply
Chain, Occupational Health & Safety,
Labor Relations, Waste Management
and Water;

As an output of our materiality
re-assessment process, we identified
18 material topics.

five topics: Respect for Human
Rights, Employee Engagement, Data
Responsibility, Competitive Behavior
and Social Contribution; and• Compliance: For now, we willcomply with regulations and local
laws related to Toxic Emissions
and Biodiversity.
The present matrix represents our
first step on a double materiality
approach. We keep engaging with our
stakeholders and collecting feedback
along the year to improve our processfurther. However, we are starting tomeasure the impact of sustainability
on our business, which is a key areafor improvement that we arecommitted to addressing in the
coming years.

• Expand efforts: We will continue/
expand our efforts in monitoring,defining policies, engaging the top
management or other actions for

HIGH

Materiality matrix
10

Climate change & action/
Energy Management

9

T

Water

8

T

Diversity andInclusion

Respect for
Human Rights

T

Occupational
health & safety

Data
responsibilityT

Circular Economy DesignT

Sustainability in supply chain
Material sourcing

T

Governance and ComplianceLabor
relations

Product safety & quality

Competitive behavior

7
IMPAC T ON STAKEHOLDERS

T

T

Employee engagement

T

Social contribution

Waste Management

6
PR IOR I T IZE(defining KPIs andsetting targets)

5
Toxic emissions

4

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

Biodiversity

COMPLI ANCE

(following the local laws)

2

LOW

1
0
0

1

2

LOW
Environment

3

4

5

6

IMPAC T ON ENTERPR ISE VALUE
SocialGovernance

T

7

8

9

10
HIGH

Targets definedmarelli.com

10Overview

Advanced mobility
and our innovation

Sustainabilityof our operations

Responsible
corporate citizen

Marelli people

About this report

Stakeholder engagement
We are continuously engaging with our stakeholders to identify key priorities andissues in our operations. We aim to further strengthen these dialogues and ensure
we are actively responding to society’s changing challenges and expectations.
Stakeholders

Engagement activities

CUSTOMERSAND CLIENTS• Face-to-face meetings • Fairs and exhibitions

SHAREHOLDERS• Periodical meetings• Co-creation workshops• Surveys
SUPPLIERS• One-to-one meetings• Contracts• Site visits• Self-assessments, audits,and qualifications

LOCAL
COMMUNI T IES
AND NGOS• Donations and gifts• Charity and fundraising• Scholarships• Awareness campaigns

MEDI A• Media releases

EMPLOYEES• Volunteering• Training• Development plans• Internal
communications• Performance Reviews• Career reviews
TR ADEA SSOCI AT IONSAND COMPET I TORS• Memberships

PUBLICADMINISTR AT ION
AND REGUL ATORYAUTHOR I T IES• Consultations• Townhalls• Continuous dialogue• Partnerships• Continuous dialogue
and periodic meetings

As is tradition for Marelli, we release
our monthly company newsletter infive languages (English, Italian,Japanese, Portuguese, and Spanish) to
keep all internal stakeholders updated
on the latest news about the company,
at a local and global level.
We launched the Marelli HUB in 2022,with the intention of sharing
knowledge and information, andcollaborating across departments,
geographies, and businessapplications. The new intranet portal,
available in English, Italian, andJapanese, further reinforces theconnection between our company andcolleagues worldwide.
In January 2022, Marelli returned toLas Vegas, USA, to join the Consumer
Electronics Show (CES). Teams from
Europe and the Americas gathered at
the Marelli booth. We hosted guests inapproximately 3,200 square feet of
dedicated, private suite space in the
Wynn Hotel, offering product displays,
meeting rooms, and hospitality.

• Compliance with local
requirements

THE SYNERGY BETWEEN MARELLI MOTORSPORT AND
POLITECNICO DI TORINO FOR POWER ELECTRIFICATION
Marelli Motorsport announced acollaboration with the PowerElectronics Innovation Center (PEIC)
of Politecnico di Torino to design anddevelop a high-power inverter forelectric traction using Gallium
Nitride (GaN) technology, tosignificantly reduce the use ofpassive components while
maintaining outstanding efficiency.

11

ImpactAs a part of a broader research
partnership with Politecnico
di Torino, Marelli will contributeto technological advancements
of innovative Wide-Bandgap
technology for
power converters.

Marelli Sustainability Report 2022

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L
Perfo LI’s intera
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Stakeholder engagement continued

Key membership associations
Marelli is a member of several industry, advocacy, research, and business associations. We participate in their projects andcommittees and we hold positions in their governance bodies. We believe that we can influence the mission and objectivesof the associations through our memberships, and that these objectives are themselves critical to our own activities.
In 2022, Marelli collaborated with 30 associations worldwide.

EuropeJapan• Japan Auto Parts Industries
Association (JAPIA)• Saitama University, Industry-AcademiaGovernment Collaboration Council• European Association of Automotive
Suppliers (CLEPA)• JAPIA Future Mobility Study Group(MOBIKEN)• Tokyo University of Agriculture andTechnology• Italian Association of the Automobile
Industry (ANFIA)• Society of Automotive Engineersof Japan (JSAE)• Saitama Employers’ Association• German Association of the Automotive
Industry (VDA)• Automobile Business Associationof Japan• AICE (Research Association ofAutomotive Internal Combustion
Engines)• Nippon Keidanren (Japan Business
Federation)• Saitama Association of Corporate
Executives• Japan Institute of Industrial Engineering(JIIE)• Japan External Trade Organization(JETRO)• Saitama Association of Corporate
Executives• FISITA• Saitama Chamber of Commerceand Industry• Motor Valley Accelerator (MVA)(anchor partner)• Sai no Kuni Land Study Group• Plug And Play Milan• Saitama Industrial Club• Saitama Nikkei Newspaper Meeting• Kanagawa Employers’ Association• Next Manufacturing at Carnegie Mellon
University• Thermal Management Materials
and Technology Research Association(TherMAT)

North America• Original Equipment Supplier Association(OESA)• Carnegie Mellon Next Manufacturing
Consortium

Brazil• Manufacture Auto Parts Association(Sindipeças)• Automotive Engineering Association(AEA)• National Association of Auto Parts
Distributors (Andap)

MARELLI AND PEUGEOT SPORT TOGETHER FOR THE FIA WORLD ENDURANCE CHAMPIONSHIP
Peugeot Sport has signed a multi-year
partnership with Marelli’s Motorsport
Division to develop the most efficientelectric solution to match the extreme
performance requirements of thehybrid powertrain system of the
PEUGEOT SPORT 9X8 Hypercar.

ImpactWe are providing the engineeringand supply of a bespoke, highperformance electric motor andSilicon Carbide-based inverter, partof the front axle electric traction
system. The car started competingin the 2022 FIA World EnduranceChampionship (WEC).

In addition to the fact that Marelli is
a FIA Official Supplier and provides
advanced technologies to the mostimportant motorsport championships,
Marelli’s focus on innovation andefficiency is completely aligned with
FIA’s commitment to environmental
sustainability in motorsport and mobility.
For this reason, Marelli Motorsport isgoing through the FIA Environmental
Accreditation Programme to develop
sustainability best practices and sharethese values with its customers and theautomotive industry. Furthermore, thedevelopment of these highperformance and high-efficiency
components is in line with the FIA’s
environmental strategy for 2020-2030.

Marelli’s logo on the Peugeot 9X8
Hypercar livery racing in the World
Endurance Championshipmarelli.com

12Advanced mobility
and our innovation

Overview

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Responsible
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Marelli people

About this reportWhere

co-creation

Advanced mobility
and our innovation
The best way to predict the future isto create it. We need to continuously
experiment and learn to progressfrom good to great in our products,
technology and value added tocustomers and to adopt the three-box
strategy: selectively phase out someof our past, to manage our current
business, invest for our future.

enhances the

future13

MarelliSustainability
Marelli
SustainabilityReport
Report2022
2022

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and our innovation

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About this report

Technology vision of mobility megatrends
The automotive industry is undergoing a major technological transformation. From the development of advanced
technologies to the use of more sustainable solutions and changes in business models, the industry is rapidly
reshaping to keep up with the fast-moving transition to a future of low-carbon mobility.

Decarbonizationand electrification

Digitalization
and automation

Collaboration amongindustry players

VDE (Association for Electrical Electronic
Information Technologies) E-MOBILITY
CONFERENCE, Joachim Fetzer, CTIO,
presented his speech ‘Trends inelectrification – the future of theelectric powertrain’

Marelli’s In-Cabin Advanced
Technology Showcase at CES,
January 2023 in Las Vegas, US

Marelli team at CES, January 2023
in Las Vegas, US

With tailpipe emissions from roadvehicles accounting for almost 15%1
of total global emissions, there is anurgent need to reduce the impact of
the transportation sector on the
climate. As a result, governments
around the world are implementing
stricter emissions standards andoffering incentives for consumers toswitch to electric vehicles.

The connected car with advanced
driver assistance systems (ADAS) is
increasingly in demand from theconsumer. The rapid advancement of
Artificial Intelligence techniques,particularly in Machine Learning and
Neural Networks, has brought about
remarkable changes in the automotive
industry. By leveraging these cuttingedge technologies, companies areachieving greater levels of efficiency intheir manufacturing operations while
simultaneously enabling previously
unimaginable product features.

Technology innovations and changes
in consumer behavior are driving
changes to business models. OriginalEquipment Manufacturers (OEMs) andTier 1 suppliers are therefore
increasingly interested in collaborating
within the industry to draft standards
for emerging technologies such as
protocols for in-vehicle connectivity
or a common battery charging
infrastructure for electric cars.

The automotive industry is shifting the focus of the development horizon, from only
looking at efficiency and economic parameters to re-thinking the concepts in alignment
with the sustainability, resilience, and e-mobility agendas.
Joachim Fetzer, Chief Technology and Innovation Officer

1

The automotive sector’s net-zero transition: Shifting to low-emission vehicles | Sustainability | McKinsey & Company.

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Advanced mobility
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Technology vision of mobility megatrends continued

Our co-creation approach in response to mobility megatrends
Evolution of customer expectations
DELI VERYSUSTA INABILI T Y(ESG)DELI VERYQUALI T Y

INNOVAT ION

COSTRESILIENCEINNOVAT ION
COSTSustainability
and Co-Creation are
the main innovation
drivers.

QUALI T Y

FUNC T ION

CO- CREAT ION

Yesterday: 4 simultaneous goals

Today: 6 simultaneous goals

In our 2022 materiality review,
we discovered that the new topics withthe greatest impact on all
stakeholders are closely linked toinnovation. As a result, we have made‘Co-Creating What’s Next’ with ourcustomers and partners a top
strategic priority. Our commitment tomaintaining proactive and close
relationships with our customers
enables us to anticipate and meettheir implicit expectations and needs,
while also delivering sustainable
solutions and new technologies that
increase customer satisfaction.

Innovation is the enabler
to achieve all 6 goals
simultaneously.

The scale and speed of change thatmarket, regulatory, and environmentalpressures are demanding is driving a
revolution in mobility that can only be
addressed through collaboration.
Hence, co-creation with car
manufacturers, suppliers, andtechnology partners is critical toprovide a transformative experiencethrough personalization, efficiency,
safety, new services, and cutting-edge
technologies.

PERFORMANCE HIGHLIGHTS

In 2022, we co-created ideas andproducts with multiple partners,
including customers, universities,
research centers, start-ups, andother industrial players throughresearch groups and joint projects.

MARELLI SUPPLIES THE INVERTER FOR THE NEW BMW ELECTRIC SCOOTERMarelli is advancing the technology needed to support thegrowing demand for electric vehicles by fostering
innovation projects related to electric powertrain
solutions and Battery Management Systems (BMS). In
2022, we supplied the inverter for the new BMW electricscooter. The inverter is a key component in the electric
powertrain and is responsible for controlling the motor’s
speed and torque.

15

Marelli Sustainability Report 2022

ImpactBy collaborating with BMW, Marelli helped to bring anelectric scooter to market that is not only environmentallyfriendly but also delivers a superior performance anddriving experience.

Overview

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Technology vision of mobility megatrends continued

LIGHTWEIGHT SUSPENSIONSLightweight features areindispensable in automotive
applications for both Internal
Combustion Engine (ICE) and Battery
Electric Vehicles (BEV). Marelli Ride
Dynamics has been studying how tointegrate eco-design principles todevelop a sustainable lightweightsuspension. Several research
projects are under way withacademic partners and research
centers, targeting new design
methodologies and processing
technologies to reduce the weight ofthe suspension. These include thereuse and recovery of lightcomposites such as fibers fromindustrial waste or scrap and thepossibility to integrate natural fibers
into composite materials.

The Ride Dynamics division, together
with thirteen industrial and research
partners from seven countries, havejoined forces in an EU-funded Horizon
2020 project – ‘Advanced Light
materials for sustainable Electrical
Vehicles by Integration of eco-designand circular economy Strategies’(LEVIS) – to design a composite
suspension control arm.

Impact

The new control arm will be 30%
lighter than the currently adopted
components. Prototypes will be
manufactured and validated by 2024.

Marelli Ride Dynamics team at the
R&D department in Turin, Italy

PARTNERSHIP WITH MOTOR VALLEY ACCELERATOR
In 2021, Marelli joined the Italian‘Motor Valley Accelerator’ (MVA),
the first accelerator of CDP Venture
Capital SGR – Fondo Nazionale
Innovazione that supports Italianbased start-ups while also
connecting corporate partners
with top international scale-ups. As
a Corporate Anchor Partner, Marelli
actively participates in selecting
start-ups, providing mentoring,and running pilot innovation projects
with particular emphasis onelectrification, autonomous driving,sustainable technologies, andmotorsport. By partnering with the
MVA, Marelli has gained direct accessto the open innovation ecosystemof one of the most significant
automotive hubs globally,
Emilia-Romagna’s Motor Valley.

ImpactTo date, the MVA program had apositive social impact by accelerating
16 start-ups and the resulting
employment of 48 founders and40 other people.

16

start-ups have been positively
impacted by the MVA program

marelli.com

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Advanced mobility
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About this reportInnovation strategy
Marelli encourages a culture ofinnovation where employees are
empowered to generate newconcepts and find innovative
solutions to address new andfuture industry trends.
Marelli recognizes the long-term
benefits of a more efficient andsustainable business model to reducethe disruptive impact of climate change
on its business and society. To this end,
Marelli established a common
framework to ensure that innovation is
managed consistently across all
Divisions, with a focus on sustainable
innovation. Global Technology andInnovation (T&I) activities are centrally

coordinated by our Chief Technology
and Innovation Officer who oversees
the implementation of, and compliancewith the framework through theDivisions’ heads of R&D. The innovation
framework employs a comprehensive
approach to product development,
engaging all essential functions rightfrom the outset.
In 2022, Marelli dedicated one out of
the four meetings of its Innovation
Council to Environmental Sustainability.
This meeting of the council serves as aforum for exchanging, discussing, anddeciding critical topics across all
Divisions with an emphasis on elevating
the importance of sustainability on the

Divisions’ agenda. The Council
reviewed the company’s current
position and the orientation of key
customers as well as major
competitors. Cradle-to-gate carbon
footprint of products emerged as a key
factor in the customers’ decisionmaking process. Marelli is therefore
increasing the transparency of ourcarbon footprint and implementing
measures to develop low-carbon
products from the earliest stages of
the innovation process. This approachis reshaping the integration ofsustainability goals, making them a
crucial aspect of the company’s daily
operations and procedures.

PERFORMANCE HIGHLIGHTS

In 2023, Marelli introduced sustainability targets into the innovation process, encouraging each Division to define
specific objectives and milestones for 2025. These commitments are supported by a roadmap and a set of key
performance indicators (KPIs) to track progress along the product development life-cycle.
Targets for 2025 considered in the product development and innovation projects, compared to 2021 baseline:-30%

in all Scopesof CO2e emissions-60%

in Scope 1 andScope 2 CO2eemissions>20%

recycled /sustainable
content for ResinsGM
e 2021
ived th ellence
e
c
e
r
li
xc
Marel r Quality E ar in a row
ieyeSuppl or the 4th
f
Award

17

Marelli Sustainability Report 2022

80%

of nominatedsuppliers coveredby ESG assessment

Motorspo
rt team d
FIAWEC, aturing
Speedway Fuji International, together with th
Peugeote
9X8 Hypercar

75%

of direct materials
suppliers’ plants
nominated with
ISO 14001

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About this reportInnovation strategy continued

Research and development
At Marelli, we aim to strengthen our
position as a leading provider ofadvanced technologies by expanding
our Research and Development (R&D)
capabilities. In 2022, we inaugurated
our new Technical R&D Center in
Bangalore1, India, which is expected to
employ around 600 engineers within
the next two years. This will boost
Marelli’s research team to more than
1,600 members. The Bangalore Centeris dedicated to the development ofsoftware solutions.

DESIGN FORSUSTAINABILITY
We promote the early andsystematic consideration of GHG
emissions reduction in productdesign and the development ofphases to minimize adverse
impacts throughout the productlife cycle.
Learn more about Design forsustainability on page 20

PERFORMANCE HIGHLIGHTS

In 2022, we announced the plan toinvest JPY 241.84 Bn (EUR 1.64 Bn)over five years to establish new
R&D Centers in India and China.
Combined with Marelli’s
existing innovation hubs, the
new centers will accelerate thedevelopment of cutting-edge
products and solutions.

INNOVATION SPRINTSIn 2022, we engaged employees
from all regions and functions topropose their innovation ideas
during our internal Innovation
Weeks, which are interactive
sessions to instill innovative thinking
among employees. We launched aseries of challenges – the Innovation
Sprints -two of which had asustainability focus:• Reducing energy consumption
by 30% in one year within theplant; and• Ideas for 50% sustainable material
substitution in our products at
minimal costs.

INVENTOR INNOVATIONPROGRAM

ImpactNearly 500 employees from over
80 teams participated and submitted
their proposals. A panel of executives
selected the most compelling ideas,
and those teams were given theopportunity to present their
proposals directly to the CEO and
Chief Technology and Innovation
Officer. Some of the proposals
included the adoption of “green”
plastics, aluminum, and steel, as wellas process improvements that are
more energy-efficient, use fewer
materials, and produce less waste.
Given the high level of participationand enthusiasm, Marelli intends tocontinue the Innovation Sprint format
regularly to encourage creativity andemployee involvement.

In South America, Marelli
introduced INVENTOR, which is aninnovation program that createsan open channel between
employees and company leaders.
It promotes:• People engagement;• Continuous improvement
culture;• Sustainability of manufacturing
standards (improvement starts
on a standard); and• Meeting customer requirements
and other certifications.

Impact

The winners of the quarterly andsemester recognition programs
were announced during a live TV
show. In 2022, 158 employees
received awards for individual
indicators and four plants wererecognized for business indicators.
Inventor statistics for 2022

2,082

11,455

1,195

5,626

employees
presented ideas

employees
involved in
implementation

1

ideas
displayed

ideas
implemented

Marelli News – Marelli expands innovation capabilities with a new Technical R&D center in Bangalore Marelli.

marelli.com

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Overview

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About this reportInnovating for sustainability
At the heart of Marelli’s design
mindset is a commitment tominimizing resource use throughinnovative solutions that reduce
emissions, improve fuel efficiency,
and promote cleaner transportation.
Our approach is underpinned by adeep-seated belief in the importanceof sustainability and our responsibility
to act as stewards of the planet.
Sustainability is part of our innovative
design, and we are prioritizing actions
to reduce GHG emissions in all scopes
as automakers are addressing thevehicle’s carbon footprint to comply
with national and international
regulations setting emissions
limitations. Recycled content andLife-Cycle Assessment (LCA)
associated with product are the top
customer requests related to productsustainability. In line with this, ourDivisions launched the following
long-term initiatives:

LONG FLOW EXHAUST SYSTEM FORNISSAN X-TRAIL (T33) E-POWER
In 2022, the Green Technology
Solution Division, focused on
reducing emissions, unveiled the‘long flow exhaust system’ as a cold
end-product for Nissan X-TRAIL (T33)
e-Power.

159

ImpactThis product is expected to reduce
CO2 emissions and raw material
usage through downsizing andweight reduction of the exhaustsystem. Specifically, the product isestimated to reduce CO2 emissionsof the vehicle by approximately
159 mtCO2e/year1 and reduceweight by 366 g.

tCO2e/year
estimated reduction inemissions per vehicle
using the ‘Long flow
exhaust system’• The reduction in the use ofcarbon‑intensive aluminum;• The exploration of alternative
materials for interiors fromrenewable sources;• Development of magnet-less motor
technology; and• The application of eco-design tooptimize recycling and drive down
Scope 3 emissions.

MAGNET-FREE ELECTRICAL MOTORSThe Electric Powertrain Division is
exploring the use of alternative
materials for electric motors to meet
OEMs requirements for magnet-free
motors. Externally Excited
Synchronous Machine (EESM), arebeing evaluated as an alternative to
the Permanent Magnet Synchronous
Motor (PMSM).

1

19

ImpactThis move will not only address
the customer demand but also
contribute to reducing thedependence on critical minerals.
PMSM contains critical mineralssuch as neodymium and dysprosium,
while EESM contain copper, a highly
recyclable material.

Estimated CO2 emission reduction is based on the following assumptions: Product life:10 years, Driving mode: WLTP, Lifetime mileage: 122,172 km(Based on JAPIA calculation method).

Marelli Sustainability Report 2022

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About this reportInnovating for sustainability continued

In 2022, Marelli
introduced the ‘Innovation
Management Process’(IMP) to establish acommon management
process for innovation
across all Divisions.
The IMP involves crossfunctional teams led by
specialists from different
Innovation Management Process functions who monitor
In 2022, Marelli introduced theinnovation projects in‘Innovation Management Process’ (IMP)to establish a common management
each division.

Material sourcing
consideration under Marelli’s
design mindset

Divisions have established crossfunctional teams and workflows tocollect data and compile the Life Cycle
Inventory (LCI) to determine the climatechange impact associated withproducts through the Global Warming
Potential (GWP) indicator. By
participating in training, learning
through experience, and working withcustomers, each Division is broadening
its competence on data gathering, LCA
software use and calculations incompliance with the internationallystandardized methodology ISO
14040:2006.

Design for sustainability

Marelli adopts a design mindset thatprioritizes minimizing resource use
through our “Design for Sustainability”
concept. We promote the early andsystematic consideration of GHG
emissions reduction in product design
and the development of phases tominimize adverse impacts throughout
the product life cycle. The concept wasstarted in 2022, and in 2023, Marelli will
set a target for innovation projects tocomply with Design for Sustainability
criteria in both the Concept andProduct Creation phases by 2025. The
design rules include ESG criteria fornominating suppliers and establishes
the proper governance and ownershipin the company to ensure the projects
can be tracked along the life cycle.

process for innovation across all
Divisions. The IMP involves crossfunctional teams led by specialists fromdifferent functions who monitor
innovation projects in each division.
The process includes a five-stepstage-gate process to assess technicalfeasibility, business viability, and user
desirability. Innovation gates between
stages define technology, financial, andnon-financial criteria to evaluate project
maturity. Sustainability is a key focus,
with parameters aligned with the three
dimensions of Environment, Social, andGovernance evaluated from the earliest
gates. In 2023, dedicated carbon
reduction KPIs will be released totarget emissions reduction from theconcept creation phase.

Calculating products’environmental impact throughLife Cycle Assessments (LCA)

At the end of 2022, Marelli started
assessing the carbon baseline for
Divisions to identify hot spots in thevalue chain, such as raw materials
extraction and manufacturing process(e.g. welding and painting). Startingfrom 2023, Marelli will increase thetechnical capacity at divisions toperform cradle-to-gate LCA.

Ma r e ll
2022 a i team in Se
ptt
Vehicl the Electr embericeNovi, M Technolog and Hybrid
y Expoichigan, USin

Innovation Management Process (IMP)Proof of Concept

PHA SE

CONCEPT CREAT ION

Ready to offer
APPL IC AT ION
CONCEPT

PRODUC T CREAT ION

STAGE

IC

ES

FS

AE

FD

Idea
Creation

Exploratory
Study

Feasibility
Study

AdvancedEngineering

Fundamental
Development

Createdevelopment
concept
outline forthe selected
innovative
theme

IG0

Searchfor new
innovativetechnologies
to be applied

IG1

Identify theprinciple andpotentialof the newtechnology

IG2

Preliminary
design anddevelopmentfor newfunction andperformance

IG3

Design anddevelopment
for mass
production

IG4

Iterative feedback cycle
marelli.com

20

Advanced mobility
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Where

climateSustainabilityof our operations
We set the targets for all the sites,
using our roadmap as a starting point –we establish context-specific targets
for environment, waste and water andmonitor progress and performanceon monthly basis.

drivesaction21

MarelliSustainability
Marelli
SustainabilityReport
Report2022
2022

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Climate change risks and opportunities management
At Marelli, we have started thejourney to consider the impacts ofclimate change on our businessresiliency as part of our risk
assessment. We have been working
to map different climate scenarios in
preparation for our Innovation
Council to embed environmental
sustainability into our innovation
strategy. Furthermore, we are
currently assessing our climaterelated risks to prevent andmanage them as well as to findnew opportunities to improvebusiness continuity.

We recognize the importance ofreviewing and assessing the potential
positive and negative impacts ofclimate change across our entire
value chain.
In 2022, as part of our preparation for
the internal Marelli Innovation Council,
we conducted a comprehensive
analysis of sustainability across all
Divisions. This involved a thoroughpreliminary risk assessment toanticipate challenges and identify
opportunities in alignment with a
net-zero scenario. This assessment
revealed that supply chain disruptions,component price volatility, andelectrification impact all Divisions, butalso represent opportunities,
especially for our Electric Powertrain
Division. Developing new products
and services to support the growing
demand for electric vehicles (EV) andother low-carbon technologies could
represent a competitive advantage
and field of expansion for Marelli.

Marelli positions itself as an adaptablepartner for automakers, looking tonavigate the transition to a low-carbon
future by implementing mitigation
actions based on hazard exposure andlevel of protection. To respond to
emerging events, such as the transition
from Internal Combustion Engines (ICE)vehicles to more climate-friendly
solutions, we are developing products
and integrated systems that support
the evolution of e-mobility through the
EV market segment.
PERFORMANCE HIGHLIGHTS

We have recently initiated a
climate change risk analysis basedon the recommendations of theTaskforce on Climate-related
Financial Disclosure (TCFD). This
analysis will be finalized in 2023
and will significantly enhance ourability to manage climate changerisks. The assessment will coverphysical and transitional risks,
allowing us to better understandthe potential financial impacts ofclimate change on our business.

Illustration by our employee, Silvia
Landi, Powertrain division, Italy

Climate change action and energy management-60%

in Scope 1 and 2
CO2e emissions
by 2025 from a2021 baseline

Despite our innovation strategy
and our engineering solutions forelectrification, we acknowledge thecontribution of our operations toclimate change, and we are actively
working to minimize it, as establishedin our Corporate EHS Policy. In 2021,
we formalized our ambition to protect
the climate by committing to fullcarbon neutrality of our operations
by 2030. In 2022, we reinforced thisambition with a new target on all
scopes emissions pursuing a net-zero
path aligned with science-basedtargets to be submitted by the endof 2023, early 2024.

The latest IPCC report highlights
the urgent need for immediate andbold action to address the pressing
issue of climate change.
At Marelli, we translate this call into
action, concretely, we are committed tobe carbon neutral in our operations by
2030 and net-zero no later than 2045
including our supply chain. In 2022, wedefined internal targets from 2023-2025
for all operations and beyond our gates.

Ride
cel Dyname bri
ate cs frod Trmee D Goianaay

Denise Lana Molina, Head of Sustainability

marelli.com

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Climate change action and energy management continued
In 2022, we aligned the Group’s
activities at the divisional level to focus
on attaining this target by developinga roadmap for:1. increasing investment in energy
efficiency projects, such as LED lighting
installation, automatic standby for idle
production equipment, and boiler
maintenance; and2. improving the share of renewableelectricity consumption to 80% by
2025 and 100% by 2030.
The renewable energy roadmap isupdated twice a year to realign theperimeter, monitor the progressagainst the previous year, and prepare
the budget for upcoming projects.
Since 2019, we have tracked our
Scope 1 and Scope 2 emissions.
Scopes 1 & 2 emissions data for 2021
have been restated in accordance withthe updated perimeter. Changes in theboundary consisted of the addition of
productive sites and the removal ofsites due to the divestment andclosure of sites following the internal
procedure for data reporting
according to the GHG Protocol.
In 2021, we also assessed the impact of
our upstream Scope 3 emissions. Our
focus has been on Scope 3 emissions
related to purchased raw materials
such as plastics, steel, and aluminum,
identified as the hotspot emitters.
We are also paying close attention toelectronic components, which have acomplex supply chain and can beparticularly challenging to manage.

For this purpose, we are aligning our
calculations to the GHG Protocol's
spending-based method.

OUR GOAL-30%

all scopes by 2025
from a 2021 baseline

This approach will enable us to better
understand our environmental
impacts and identify opportunities toreduce emissions across our entire
value chain. This first assessment will
represent our baseline. We haveidentified six categories relevant forour business:

OUR GOAL

80%

renewable
electricity by 2025
and 100% by 2030

Category 1 – Purchased goods andservices;
Category 2 – Capital Goods;

CO2e emissions (mtCO2e)

Category 3 – Fuel and energy related
activities;-5.5%

Category 4 – Upstream transportationand distribution;
Category 5 – Waste generated inoperations; andCategory 6 – Business Travel.
In 2023 we will improve the accuracyof data collection from our suppliers
to be reported on CDP 2023 referring
to 2022 data available.
In 2022, our restated Scope 1 andScope 2 emissions decreased by 5.5%
from the previous year (absolute value,market based). This reduction was
primarily due to an increase in the
consumption proportion of renewableelectricity from 13.9% in 2021 to 26.5%
in 2022, which also contributed to thedecline in CO2e emissions intensity by-6.3%1 to 0.0055 mtCO2e per worked
hour in 2022.

in absolute Scope 1 and Scope 2(market-based) CO2e emissions
compared to 2021
Scope 1 emissions

2021
2022

60,090.972
57,265.46

Scope 2 emissions (market-based approach)

2021
2022

395,031.29 2
372,823.71

MARELLI SUNDERLAND PLANTS SUPPORT THE CITY’S CARBON NEUTRALITY AMBITION3
Since 2021, Marelli’s Sunderland
plants in the UK have rolled out arange of retrofit improvements
including several energy-saving
measures, such as the installation offull LED lighting across its offices andshopfloor, lighting sensors tominimize wattage, and AI-powered
air compressors to reduce energy
consumption. This will deliver acarbon reduction of 7.88 mtCO2e
between 2021 and 2023.

ImpactThe Sunderland City Council – the local
authority for the city – is championing
businesses like Marelli, that are
doing their part to address theclimate emergency.

1

The 2022 reduction has been registered against the 2021 restated data of Scope 1 and Scope 2 (market-based) emission intensity.

22021 data has been restated due to changes in the reporting perimeter, specifically 14 sites have been added and 3 removed.
Consult page 75 – data restatement.

3

Automotive supplier drives down carbon footprint – MySunderland.

23

Marelli Sustainability Report 2022

Overview

Advanced mobility
and our innovation

Sustainabilityof our operations

Responsible
corporate citizen

Marelli people

About this report

Climate change action and energy management continued
Energy consumption (GJ)
Indirect energy consumption

Direct energy consumption

2021

3,882,135.25

2022

3,840,991.45
20212

2021

1,050,211.63

2022

996,947.36

2022

Of which non-renewable electricity 3,300,282.44 2,796,422.64

Of which fuels

Of which purchased electricity
from renewable sources

Of which self-generated
renewable electricity

529,334.85 1,003,562.57

Of which heat

49,920.12

35,913,80

Of which cooling

260.90253.902,336.94

4,838.54

Of which compressed air

In 2022, we secured renewableelectricity by signing power purchaseagreements (PPA) with green electricity
providers and increasing the use ofcertified purchased electricity fromrenewable sources:• 342,529.89 GJ of renewableenergy sourced through PPA or
certified purchased electricity fromrenewable sources in Brazil,
corresponding to 93% of electricity
consumed in Brazilian facilities;• 100% renewable electricity
purchased for our operations in
Turkey; and• 391,557.43 GJ of renewableelectricity sourced for ouroperations in Italy (covering 78%
of Italian electricity needs).

2022

1,045,438.84

991,911,40

4,772.79

5,035.96

Learn more about energy and emissions data in the GRI
content index pages 62 to 64

INNOVATION SPIRITSOver 80 teams participated in the
Innovation Sprints, which werelaunched during our Innovation
Weeks, and submitted projects
based on innovative ideas focusedon four themes, two of which related
to sustainability: ‘Energy Hunt’ and‘Sustainability BoM.’

20212

PERFORMANCE HIGHLIGHTS

ImpactA jury comprised of Group Executive
Committee members selected the
top three proposals from eachchallenge that will receive support toput the ideas into practice.
Learn more about the innovation
sprints in the Advanced mobility andinnovation chapter on page 18

Photovoltaic plants installed in ourfacilities in Japan, India, and Italy areproviding 5,035.96 GJ of self-produced
renewable electricity. Our Renewable
Electricity Roadmap includes more
projects for the coming years toincrease the self-production ofphotovoltaic electricity. By 2023:• 5,793 MWh/year of photovoltaic
electricity will be generated
through the photovoltaic roof plantinstalled in the Modugno plant in
Italy, covering an area of 23,257 m2
and representing a significant
contribution to the plant’s energy
needs; and• 3.15 MW of peak target capacityof the photovoltaic plant installed in
Penang, Malaysia.

26.5%

of total electricity consumption
in 2022 coming from renewablesources-2.8%

in energy intensity (MJ/worked
hours) compared to 2021

51%

of energy consumption occurredat plants covered by ISO 50001
certification-5.5%

in absolute Scope 1 and Scope 2(market-based) CO2e emissions
compared to 2021 restated-5.0%

in SOx and NOx air emissions
compared to 2021

B scorein 2022 Climate Change Carbon
Disclosure Project (CDP)

Learn more about energy
and emissions data in the
GRI content index.

marelli.com

24

Advanced mobility
and our innovation

Overview

Sustainabilityof our operations

Responsible
corporate citizen

Marelli people

About this report

Environmental management
The topics related to the environment are ranked as a high priority for our
stakeholders, especially for our customers. We are therefore concentrating
our efforts on mitigating our environmental footprint.

EHS management and framework
Our Corporate EHS Policy outlines our commitment to protecting water,
limit GHG emissions, reduce waste generation, and preserve biodiversity.
ENV IRONMENTAL TARGETS FROM A 2021 BA SELINE
2025 TARGETS

2030 TARGETS

-60%

80%

-10%

-15%

-30%

-10%

-14%

-20%

95%

51%

100

293

in Scope 1 and 2
CO2e emissions

CO2e emissions
in all scopesof renewableelectricity

in ordinary
waste
generationin energy
intensity (MJ/
worked hours)in energy
intensity (MJ/
worked hours)

in waterintensity (Liters/
worked hours)

Ma r el
R&D c li communente
r Clu ity
j Rom
ania

in waterintensity (Liters/
worked hours)

PERFORMANCE HIGHLIGHTS

In 2022, our EHS framework
was integrated with the following
new procedures:• The Environment, Health and
Safety, and Energy (EHS&E)
annual data collection procedure,
which formalizes the procedure
for collecting additional KPIs
for external disclosure andsupplements our monthly
internal data collection; and• The EHS&E Reporting Boundaries& Data Restatement procedure fordefining the company’s boundaryfor external disclosures, annual
target setting, internal monitoring,and guidelines for data
restatement.

of productive
sites are certified
according to
ISO 14001
management
systemthird-party
auditsof energy
consumption
is covered by
ISO 50001
management
systeminternal
auditsto assess environmental
management system at plants

Learn more about the updates in theperimeter in the About this reportchapter on page 55

Coffe
e planLianatationLo,emplo ngano. PH Costa Ricaotoyee, Liana Lon by our
gano

25

Marelli Sustainability Report 2022

Marelli AL
People fromrbage duringcollected ga
ment MonthonvirWorld En

Overview

Advanced mobility
and our innovation

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About this report

Environmental management continued

Circular economy design
At Marelli, we acknowledge the criticalimportance of the “circular economy
design” as a material topic. We view
this as an opportunity to review ourprocesses and designs, with a focus
on design parts to be easily recyclable
and reusable and apply modularity
principles to product design, minimizing
our environmental footprint. This
involves developing innovative solutions
that promote circularity and adopting
sustainable practices such as reducing,recycling, and avoiding the productionof waste at the operational level.
Moreover, we promote the rational use
of natural resources and raw materials.

Recycled raw materials used in 2022

Aluminium
31.3%

PERFORMANCE HIGHLIGHTS

Resins3.5%

23.5%
recycled raw
materials
in 2022

Steel
65.2%

57,506 tonnesof recycled raw materials in 2022

Waste prevention
In 2022, we successfully repurposed more than 15,400 tonnes of materials,
preventing it from becoming waste:

Metal

Plastic

Wood

Paper andcardboard

6,000 tonnes

4,200 tonnes

2,800 tonnes

2,400 tonnes

Waste management
At Marelli, each site is responsible
for ensuring compliance with waste
management regulations in its
local area. Our waste management
hierarchy promotes source reduction
and reuse as the preferredmanagement option, while treatment
and disposal should be the last option.
For this reason, we have the ambition
to achieve ”ZERO WASTE to LANDFILL”
and we are carefully monitoring
the percentage of waste and its
final destination.
Marelli’s total waste figures are
generated from manufacturing
processes, warehouse operations,
offices, canteens, and break areas.
Specifically, 92.4% of waste generated is
non-hazardous and 24.5% is packagingrelated waste. As a result of several
initiatives undertaken during 2022,
Marelli was able to reduce the amountof waste generated and the amount of
it which got disposed into landfill.

Ma r e llplant i Powertrained
Enviro 700 plant IndiaS
nment
al Day during

Waste Management Hierarchy
MORE PREFERREDSOURCE REDUC T ION AND REUSEREC YCLING / COMPOST ING

ENERGY RECOVERYTREATMENTANDDISPOSALLE A ST PREFERRED

Learn more about these initiatives in our case studies on the next pagemarelli.com

26

Advanced mobility
and our innovation

Overview

Sustainabilityof our operations

Responsible
corporate citizen

Marelli people

About this report

Environmental management continued

2.7%

84.5%

reduction in
waste generated
compared to 2021

2.4%

of wasterecycledof waste tolandfill

Waste generated (mt)
Total waste generated

2021

87,824.93

2022

85,497.34
2021

Total waste
diverted from
disposal byrecycling

Total waste diverted from disposal
by recycling1

Total waste directed to disposal

2021

2021

74,561.29

2022

72,228.52
2021

2022

Of whichhazardous

1,736.08

1,961.15

Of which
non-hazardous

72,825.21 70,267.38

2022

74,561.29 72,228.52

Total waste
13,263.64 13,268.82
directed to disposal

13,263.642022

13,268.82
2021

2022

Of whichhazardous

4,477.68

4,533.72

Of which
non-hazardous

8,785.96

8,735.10

Learn more on waste generation data in the GRI content index on page 62

ON OUR WAY TO ZERO WASTE TO LANDFILLIN AMPARO, BRAZIL
Last year, the Amparo Plant of GreenTechnology Systems in Brazil
selected a new service supplier that
separates municipal mixed wastefrom solid waste for recovery, reuse,or other non-landfill destinations.
This municipal waste, properly
selected, is now mainly used forco-processing, generation of waste
blend to be incinerated in a cement
kiln, and composting.

ImpactThrough this best practice,
the Amparo plant diverted
from landfilling

44 tonnesof waste in 2022

Marelliteam at Am
in Brazil
paro plant

IMPLEMENTATION OF GRANULATIONTECHNOLOGY AT WUHU AND FOSHAN, CHINA
In addition to our plants in theAmericas and Europe, in 2022, theChinese sites of Wuhu and Foshan
Automotive Lighting & Sensing
introduced granulation technologies
to divert defective parts and scrap
parts from disposal, and to instead
reintroduce them into production as
non-virgin raw materials.

127

ImpactThrough this, about

140 tonnesof waste was avoided in 2022s
ermal System
Visiting the Th ina
Chxi,plant in Wu

Waste generated is diverted from disposal only by recycling operations, no other recovery operations are adopted.

Marelli Sustainability Report 2022

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Water

Since 2021, we have conducted a comprehensive
corporate‑wide water risk assessment, using the
Aqueduct tool developed by the World Resources
Institute (WRI), to identify our manufacturing
facilities situated in water‑stressed regions.
At Marelli, we are conscious of the
global situation of water stress. We
are therefore actively engaged inmonitoring every step of our water
usage and have been working to
identify our related risks andopportunities.
At Marelli, we rely on water for bothproduction processes and civil usage.
Consequently, we recognize that ourwater usage has an impact on two
critical areas: water scarcity and water
quality. Our operations may contributeto water scarcity, especially in waterstressed regions, and we are also
mindful of the pollutants in
wastewater, which can have an
adverse effect on water quality. In
2022, we launched a corporate Water
Policy to improve the management of
our water-related risks andopportunities through theimplementation of various strategies,
processes, and best practices.

19

1

manufacturing
facilities highlighted
as being situated inareas classified as
Extremely Highrisk for water
stress in 2022

Since 2021, we have conducted acomprehensive corporate-wide waterrisk assessment, applying the
Aqueduct tool developed by the World
Resources Institute (WRI), to identify
manufacturing facilities that aresituated in water-stressed regions. In
2022, the tool highlighted 19 facilities2
in areas classified as Extremely Highrisk for water stress. The most relevant
manufacturing processes carried out
in these facilities are related to lighting
and electronics components. Such
activities represent our main businessin terms of turnover and therefore
the associated financial impact has
been estimated for each of the
exposed facilities.

oup of the
Volunteer gr
erperience Cent
Ex
er
om
st
Cu
Michigan, US
d,
iel
hf
ut
So
at

Ele
c
in K tronicodama, s plant
Japan

PIPELINE INTEGRITY PROJECT AT VENARIA REALE, ITALY
Since the end of 2021, the Italian siteof Automotive Lighting & Sensing
Technology in Venaria Reale has
inspected the water pipeline at theconnection point and through theunderground section. Some leaks inthe plant’s potable water lines havebeen discovered and repaired.

ImpactThis pipeline integrity
project contributed to5,800m3of water in 2022

OUR RESPONSE TO WATER STRESS RISK IN MODUGNO, ITALY
The Powertrain Division’s site in
Modugno, Italy, a water-stressedregion, implemented a project toreduce leakage on evaporative
towers.

ImpactThe best practice resulted in a
reduction of approximately

9,700m3of water withdrawal in 2022

1

This value refers to 2022 CDP report and is related to 2021 data results.

marelli.com

28

Advanced mobility
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Overview

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corporate citizen

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About this report

Water continued

Reducing water withdrawal
Our water supply in 2022 was ensured
through direct withdrawals, supply
from third parties as well as recovery
of process water from our operations.
We track our water efficiency using thewater withdrawal intensity, whichmeasures the amount of water
withdrawn per hour worked. In 2022,
our company has achieved an 11%
reduction in this KPI compared to2021, among different Marelli Divisions
main results have been achieved by
Automotive Lighting & Sensingsermal System
Visiting the Th ina
Chplant in Wuxi,

Technologies (-25% vs 2021) andElectronic Systems (-16% vs 2021),
with the following main projects:• The Automotive Lighting & Sensing
Technologies Chinese site in Wuhu
installed innovative cooling towers,
water meters, and water leakage
detection systems, saving 107 ML
of water in 2022; and• The closed water loop project
implemented at the CorbettaElectronics Systems site in Italy also
contributed by saving 40 ML ofwater in one year of activity.

PERFORMANCE HIGHLIGHTS–11%

water withdrawal intensity(Liter/worked hours) in 2022
compared to 2021

Marelli’snCenter (T ew Technical R&DRD) in Ban
galore,India, inau
guratedin 2022

Water balance (ML)
Total water demand

Total water withdrawal

2021

32,893.03

2022

28,745.40
2021

Of which Total
water withdrawal
Of which Total
water recycled/reused1

2,464.20

Recycled Water
Index2

2021
2022

2022
2,221.25

30,428.83 26,524.15

Total water Discharge 1,501.86
92.5%

Total water discharge

2,464.20
2,221.25

2021
2022

1,501.86
1,340.93

2021

2022

2021

2022

From surface water

104.5787.62

To surface water

99.36

81.60

Ground water

410.67364.95To ground water0

0

To third party

1,402.50 1,259.33

Third party water

1,948.96 1,768.67

1,340.93
92.3%

1

Recycled water is defined as water that has been utilized more than once in the same production cycle or in another cycle without receiving any kind oftreatment. It can be both measured using water meters or estimated. Treated effluent water reused in the sites is referred to as reused water.

2

Recycled water index is calculated by dividing the volume of recycled/reused water by the total amount of water withdrawn and recycled/reused water.

29

Marelli Sustainability Report 2022

Overview

Advanced mobility
and our innovation

Sustainabilityof our operations

Responsible
corporate citizen

Marelli people

About this report

Occupational health and safety

To reinforce our culture of prevention, we are conducting targeted training
and workshop sessions aimed at increasing awareness and sensitivity tohealth and safety practices among all workers.
At Marelli, we are committed tosafeguarding the health and safetyof our employees and to continuously
working to manage and face related
challenges, as stated in our EHS Policy
available in 19 languages on
Marelli's website.
We instill a culture of prevention andhave been putting in place procedures
to manage and prevent assessed risks,
investigate incidents, and address
non-conformities. During the last year,
we increased the number of sites
certified according to the ISO 45001
standard for Occupational Health and
Safety Management Systems (OH&S) by
15%, thus achieving a total of 54% ofcertified productive sites. For the coming
years, we expect to further increase thenumber of certified sites. During 2022,
we also performed 212 internal audits
and 90 external audits related to OH&S
management systems.
Despite the implementation of
structured procedures and our OH&S
management systems, 535 injuries1
occurred during the last year,≥ 90%

We set an annual internal target tocertify ≥ 90% of our production sites
under ISO45001 (Occupational Health &Safety target perimeter includes127 sites)

representing an increase of 2.7% incomparison to 2021. 497 involved our
employees and 38 non-employees. As aresult, in 2022 the LTI rate increased to
0.94 for Marelli’s employees (vs 0.87 in2021). For other workers who are not
employees, the frequency declined to0.25 (vs 0.86 in 2021).
We deeply regret that one incident
resulted in a fatal outcome for oneof our employees. The incident wasreported to local authorities andproperly investigated to identify theroot cause. Through this analysis,
we identified two causes:• LOTO (Lock Out Tag Out) procedure
was not followed properly to deenergize the equipment before any
interventions; and• The reliability of the safety control
system was lower than the minimum
level requested according to ISO
13849. In addition, the rear of themachine was not equipped with aservice door.

212

internal audits

As Global Countermeasures, we have
implemented both short- and mediumterm actions to strengthen our healthand safety practices. Our first step was
to receive confirmation from all plant
managers of full implementation of
LOTO (Lock Out Tag Out) in each locationand identify any gap. For medium term
actions we have boosted the global
machine risk assessment programs inplace on the existing equipment
portfolio and reinforce the application ofMarelli Equipment Basic Requirement on
new equipment. Furthermore, in case of
any high consequence of lost time injury,
we conduct alignment meetings
between relevant functions andbusiness divisions to define effective
countermeasures and mitigate the riskof similar injuries occurring in the future.
These measures are then cascaded byeach Division at the site level andconfirmed to be fully implemented.
To reinforce our culture of prevention,
we are conducting targeted training andworkshop sessions aiming to increaseawareness and sensitivity in health andsafety practices among all workers.

90

external audits

related to OH&S management systems, carried out in 2022

Marelli team in Cluj, Romania celebrated
the World First Aid Day with First Aid
exercises and an interactive quiz

1

This data includes fatalities, high consequence lost time injuries, lost time injuries and first aids.

marelli.com

30

Advanced mobility
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About this report

Occupational health and safety continued
In 2022, we introduced three additional procedures to improve the safetyof our employees:

1.

A common Lock-out
Tag-Out procedure(LOTO) to prevent
injuries resulting fromthe unexpected
activation of machineryor release of hazardous
energies;

2.

PERFORMANCE HIGHLIGHTS

3.

The Permit to Workprocedure to control
high-risk and nonroutine works toensure individuals
have assessed
foreseeable risks andhave taken suitableprecautions; andA special effort was dedicated topreventing future injuries toworkers in the Logistics area.
Marelli designed the Health and
Safety Logistics Standard to set
guidelines for drivers, employees,
and subcontractors’ safety. The
standard covers:

The Chemical AgentManagement
procedure to
identify and assess
the operational
managementof chemicals.

• Risk assessment for
warehousing and logistics
elements;• Training to enhance theemployees’ awareness;• Layout to highlight hazards
in the working environment;

Work related injuries

Employees

Workers who are
not employees

2021

2022

2021

2022

482

497

39

38

Of which fatal injuries

0

1

0

0

Of which highconsequences Loss
Time Injuries (LTI)

25

18

9

2

Of which LTI

55

66

5

2

Of which First Aid

402

412

25

34

0.87

0.94

0.86

0.25

Number of injuries

Total LTI rate

• Safe management instructions
for lift truck and othertransportation means; and• Basic principles for the useof storage systems.

81,702hours of training
for OH&S in 2022

ZERO ACCIDENT CAMPAIGN IN THAILAND
In June 2022, the Thailand Institutefor Occupational Safety, Health,and Environment Promotion (T-OHS)
promoted the Zero Accident
Campaign to encourage businesses
and local companies to commit topreventing accidents at work.

1

31

Impact

For the 4th consecutive year, Marelli
Thailand has been awarded thePlatinum level thanks to our great
effort in working more than 38 million
hours without accidents. The plaquehas been delivered to Marelli Thailand
referents by General Prayut Chan-ocha, Prime Minister of the Kingdom ofThailand, during the official ceremony
hosted at the Royal Jubilee Ballroom.

Marelli Thailand awarded during
the Zero Accident Campaign 2022

Occupational Health and Safety data has been collected for 142 manufacturing productive sites and 27 non-manufacturing sites.

Marelli Sustainability Report 2022

Overview

Sustainabilityof our operations

Advanced mobility
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About this report

Product safety and quality

Monozukuri philosophy can contribute to sustainability
by reducing as much waste and inefficiency as possible.

PERFORMANCE HIGHLIGHTS

In 2022, as a part of MMS,
28 indicators have shown thegreatest improvement among
all the indicators with an average
improvement of 23%. One ofthese metrics saw an improvementof 73%.

Hiroyuki Ishikawa, EVP Operational Excellence

Being best-in-class quality
and highest efficiency

Since the Marelli Group’s formationin 2019, we have been actively
working to create a synergy byintegrating the best attitudes
of our two distinct cultures.
The adoption of Japan’s Monozukuri
philosophy embodies our unwaveringcommitment to continuous
improvement and the creation of fine
products. Our approach is grounded ina holistic understanding of the productand meticulous attention to every
aspect of the manufacturing process.

To achieve our “Being best-in-classquality” and “Highest Efficiency” goals
in our operations worldwide, we have
deployed the Marelli Manufacturing
System (MMS), which was improvedin 2022 with five additional indicators.
In addition, the Quality Strategy
Department introduced a newconcept called “cost of quality,” which
consolidated several KPIs (for example
material scrap, premium freight andwarranty cost) associated with the costof producing poor-quality products.
This allowed us to identify areas for
improvement and reduce waste.

Since 2019, Marelli has implemented
the cost-per-hour indicator to ensure
optimal efficiency at all levels of theorganization. As with many othercompanies, in 2022 Marelli was not
immune to the effects of rising
inflation and semiconductor
shortages, leading to additional
expenses to secure the necessary
supply of components and mitigate
the effects of inflation.

ZERO DEFEC T AND HIGHEST EFFICIENC Y
GlobalStandardization

Continually Improving

GLOBAL STANDARDIZED MANUFAC TUR ING SYSTEM
Process definition
through standards

Engineering Chain

Application in all global plants

Continuous improvement

Standard SettingStandard Application

Operation Chain

Continuous Improvement

Division Supply Chain Management
Design Standards

Global Manufacturing Standards

Loss and Waste Definition

Supply Chain Management Book
including Diagnosis

Stratification and Prioritization

Division Process Design Standards
Division Operation Design Standards
Manufacturing KPI definition
Integrated Governance With Process
Launch Management

Maintenance Management Book
including Diagnosis
Gemba Kanri (shopfloor management) Book
including Diagnosis
Planning and Control Standardization

Standard Improvementand Loss Reduction

Standardized Kaizen (continuous
improvement) Methodology
Standard Tools
and Training
Feedback LoopBest Practice

People Development

marelli.com

32

Overview

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corporate citizen

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About this report

Product safety and quality continued

COST OF QUALITY CONTEST 2022
For the very first time, in 2022 wecelebrated Operational ExcellenceMonth to spread the Marelli quality
mission. To celebrate this month,a Cost of Quality Contest wasorganized. 246 teams from all over
the world attended the contest andthe top 12 teams were selected toshare their presentations at the ‘Costof Quality Contest 2022’
Global Championship.

Impact

The EGR Men in Black team from
Marelli Mexicana, S.A.de C.V. THS
San Francisco Plant won the Global
Champion.

ELS Team at Marelli Corbetta plant(Italy) won the Global ExcellenceAward on the Cost of Quality Contest

ZERO DEFECTS CHAMPIONSHIPThe campaign Zero Defects
Championship acknowledges
employees who have gone aboveand beyond in terms of engagement,
quality, and results. In 2022, wecelebrated the outstanding efforts ofour employees in Brazil, recognizing
113 team members who were alsointerviewed in a podcast.

33

ImpactOur employees’ engagement
and quality metrics have madea significant impact, and we’recommitted to continuing torecognize excellence in our
workplace culture.

Marelli Sustainability Report 2022

EGR
M
Mare en in Blal
THS S li Mexic ck team f
an
an Fr
r
ancis a, S.A.de om
co PlCant .V.

Overview

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About this report

Commitment to quality
Our philosophy on quality recognizes
that perfection is not a static state,
but a dynamic process that requires
ongoing effort and commitment tocontinuous improvement.
Marelli’s Quality Vision of “ZeroDefects to satisfy customers” drives
our dedication to delivering thehighest level of product quality andcustomer satisfaction. Throughregular top management meetings
with our major clients, we proactively
identify and address any potential
quality concerns. We instill a strong
sense of responsibility andaccountability, stressing theimportance of preventing nonconformance issues from the earliest
stages of developing new products. In
recognition of these efforts, we were
honored to receive 30 awards fromour customers in 2022.

Being best-in-class tosatisfy customers
The corporate Quality Policy reflectsMarelli’s vision to achieve the goal of
Zero Defects through three elements:• Quality Vision: “Being best-in-classto satisfy customers”; andPERFORMANCE HIGHLIGHTS

33

awards from
customersin 2022• Quality Mindset: Principles of
behavior to achieve Marelli quality.

Marelli’s Quality Vision of
In 2022, we provided 12,411 hours of‘Zero Defects to satisfy
training on the Manufacturing
customers’ drives ourManagement System to make quality
principles an integral part of all our
dedication to delivering
operations. Since 2021, the training
the highest level ofhas been offered in eight languages.
product quality and
In addition to this, Marelli adopted atool for Abnormality Management at a customer satisfaction.
global level that has been instrumental
in reducing the average ratio ofdelivery defect products (ppm) byalmost 50% and single digit ppm injust three years since the foundationof the Group.

Marelli’s Integrated Design MInD Xp adds
a new cloud environment to the existing
MInD ecosystem, which redefines
vehicle personality through connected
hardware and software solutions.

marelli.com

34

Advanced mobility
and our innovation

Overview

Sustainabilityof our operations

Responsible
corporate citizen

Marelli people

About this report

Wheregovernance

Responsible
corporate citizen
Performance is not just a result of
hiring the right people and giving them
the resources – teamwork is equallyimportant. Teamwork should not bringmore bureaucracy, but rather it has to dowith how we work together, which has ahuge impact on how successful we arein achieving the goals of the company
as well as our own goals.

creates

resilience
35

MarelliSustainability
Marelli
SustainabilityReport
Report2022
2022

Overview

Advanced mobility
and our innovation

Sustainabilityof our operations

Responsible
corporate citizen

Marelli people

About this report

At Marelli, sustainability is an integral part of our long-term strategy, not only
because our customers, shareholders and employees expect it of us, but because weunderstand that our actions impact the world around us. For that reason, we always
consider environmental, social, and corporate governance issues throughout ourdecision-making processes.
Marisa Iasenza, Chief Legal Officer

PERFORMANCE HIGHLIGHTS

Since 2022, ESG topics have been
included as a part of the agenda
for every Board meeting.

GovernanceMarelli is committed to promoting
our social and ethical responsibilities.
In line with this approach, ourhighest decision-making body, theBoard of Directors (Board), is actively
engaged in overseeing Marelli’s
sustainability strategy, considering
material areas of focus and the
expectations of every stakeholder.

Board and committees
Marelli’s Board is composed of 10
members (four women and six men)from a diversity of backgrounds andexperiences to achieve an appropriatebalance between diversity,
independence, and relevant
competencies for our company.
Generally, our Board members arenominated every year, except for our
Audit and Risk Committee members
who are nominated every two years.

The Board is composed of two
committees: the Audit and Risk
Committee and the Nomination,
Governance, and Human CapitalCommittee. These Committees were
established by our Board in 2022.
The day-to-day management of ourcompany is delegated to the Group
Executive Committee (GEC). The GEC,
chaired by the CEO, acts to maketop-level operational decisions,guided by our Delegation of Authority(DOA) policy.

Board of Directors

Dinesh Paliwal

David Slump

Executive Chairman

President and CEO

Hisao Iijima

Karen Snow

Audit and Risk Committee

Bin Hwee Quek

Hirofumi Hirano

Hiroshi Moriya
Vice Chairman

Dr. Punita
Kumar Sinha

Seichii Kakizawa

Dr. Shellene Santana

Chair of the
Audit Committee

Nomination, Governance, and Human Capital Committee

marelli.com

36

Overview

Advanced mobility
and our innovation

Sustainabilityof our operations

Responsible
corporate citizen

Marelli people

About this report

Governance continued

Sustainability governancestructure
Given Marelli’s expansive andcomplex global structure, Marelli’s
Board delegates sustainability
responsibilities across multiple board
committees. This approach is in linewith 67% of S&P 100 companies thatspread ESG oversight over two or
more committees1.
Since 2022, ESG topics are an integral
part of the agenda of every Board
meeting. We have also establishedan External Advisory Board (EAB),
chaired by our CEO, which iscomposed of two external advisorsfrom private companies in Europe,
one external Chinese advisor fromacademia and one senior memberof our main shareholder, KKR. Our
EAB plays a crucial role in providing
support and guidance to ourleadership team. Specifically, theEAB advises and provides feedbackon critical areas such as oursustainability strategy, as well as
product and innovation roadmaps.

To ensure a transversal ESG
governance approach, and theappropriate definition, management,
and implementation of sustainability
initiatives, the following process
is implemented:• The oversight from the Board isundertaken by the Nomination,
Governance, and Human CapitalCommittee (NGHCC), which is
responsible for reviewing oursustainability performance andadvising on our strategy;• The GEC receives monthly updates
on our strategy and its execution,
as well as updates on criticalsustainability topics, such as key
industry and sustainability trends,
regulations, and stakeholder
expectations;• The Sustainability Council, formed
in 2020, is composed of eight
members of the GEC and is led by
our CEO. This Council meetsquarterly and decides on priorities
and target-setting, including
Marelli’s ambition to become
net-zero by 2045. The process fordesigning internal sustainability
targets considers our baseline
performance and our ambition,

ESG-related requests received fromour customers, and key reporting
standards related to our industry(SASB and MSCI). This approachensures that internal and external
perceptions are considered and thatthe target setting is context-specificand relevant for our external
stakeholders; and• In 2022, the Council decided tonominate leaders of each Divisionaccountable for setting andachieving progress toward internal
targets, sustainability data
gathering, and reporting processes.
These Division leaders form theSustainability Committee. The
Committee, chaired by the head ofsustainability, is responsible for
executing initiatives aimed atachieving progress towards internal
targets and tackling sustainability
challenges, including those related
to carbon neutrality, life cycle
assessments, Diversity & Inclusion(D&I), and CSR. The Committee is
supported by other internal
committees, such as the Diversity
Equity and Inclusion council (DEI)
council as well as the R&D,
Engineering, or Purchasing
committees, as depicted below.

Sustainability governance structure
COORDINATED BY THE SUSTA INABILI T Y TEAMBOARD OVERSIGHT
Nomination, Governance, Human Capital Committee with Board members
Group Executive Committee
Accountable for ESG Disclosure
SUSTA INABILI T Y COUNCILSUSTA INABILI T Y COMMI T TEECEO, CPO, CTIO, CHRO, CMO, CLO, Heads of Manufacturing,
Strategy, Sustainability and electric Power Train (ePT)

All functions + Business Division + Countries
Execution

Targets and priorities
Meeting every quarter

Support from Functions
R&D, Engineering
Manufacturing
Product Innovation

Purchasing Committee

Manufacturing

DEI Council

ESG in Supply Chain

Process Efficiency
Project Management

DEI targets

Yearly Innovation Council

1

37

www.ifac.org/knowledge-gateway/supporting-international-standards/discussion/board-oversight-sustainability-and-esg

Marelli Sustainability Report 2022

Overview

Advanced mobility
and our innovation

Sustainabilityof our operations

Responsible
corporate citizen

Marelli people

About this reportCompliance
Last year, the global semiconductor
shortage severely impacted theentire automotive industry,
prompting us to make supply chain
resilience a top priority. Building on
our efforts from last year, we havefurther expanded our focus onsustainability to encompass ourentire supply chain in 2022.
Marelli’s policies and procedures areavailable to all employees and provide
guidance for achieving compliancewith laws and regulations, as wellas preventing breaches andnegative impacts.
At the beginning of 2023, we becamea signatory of the United Nations
Global Compact (UNGC), which isa voluntary initiative advancing
universal principles on human rights,
labor conditions, the environment,
and anti-corruption. As part ofour commitment to upholding theprinciples of the UNGC, we willcontinuously monitor our progress
toward meeting these principles. To
provide transparency on our progress,
we will include this information in ourannual sustainability reports, which
will serve as our Communication of
Progress (COP). Additionally, we will
utilize the questionnaire provided
by the UNGC to report on our
progress towards meeting theseimportant standards.
Learn more about Marelli’s
Sustainability in supply chain in the
Responsible corporate citizen chapter
on page 42

DFL delivers‘Best SupplierAward’ to Ma
relli in 2022

Code of conduct andwhistleblowing process
The Marelli Code of Conduct applies
to all our stakeholders and offers a clear
framework for how we interact withcustomers, suppliers, communities,
governments, and employees, ensuringconsistency with the universal
declaration on Human Rights1 and theInternational Labor Organization (ILO)
Declaration on Fundamental Principles
and Rights at Work2.
The Code is also submitted to all our
suppliers to ensure they uphold thesame ethical values and work conduct
as we do at Marelli.
In addition to the Code, Marelli
introduced a range of global policies
and procedures, including the 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, Meetingwith Competitors including Business
Associations, and Basic Policy Against
Anti-Social Forces, also covering
money laundering and fraudulent
activities, among others. In 2023, a
gifts and hospitality procedure will belaunched to guide Marelli personnel as
to what is and what is not acceptable
regarding giving and receiving gifts
and hospitality (meals, entertainment,
travel, etc).
Marelli also deploys an Integrity
Hotline, which is made available toemployees and third parties to reportpossible breaches and suspectedviolations against Marelli’s Code of
Conduct and Human Rights Policy.
This anonymous and confidential
whistleblowing system is accessible
in all countries and in 18 languages3.
It includes the following categories
of reporting: Anti-Boycott, Anticompetitive behavior, bribery andcorruption, Conflict of interest,
Discrimination, EHS, Export controls,
Financial/Accounting, Fraud,
Harassment, Threats and Assaults,
Information Security, Internal Working
Environment, Money Laundering,
Product Regulatory & Safety,
Retaliation, Safeguarding of Assets,
and Others.

1

Universal declaration on human rights.

2

ILO Declaration on Fundamental Principles and Rights at work.

3

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

Our Board ensures that conflicts ofinterest are prevented by reviewing
any potential conflicts. Marelli has also
implemented a Conflict of Interest
Policy and our Integrity Hotline isavailable to anyone to report any
possible breaches. Additionally, ourEthics and Compliance Committee
regularly meets to review any possible
compliance issues and discussmitigation activities to address any
raised concerns. The members are:
• Chief Executive Officer (CEO);• Chief Financial Officer (CFO);• Chief Human Resources Officer(CHRO);• Chief Compliance Officer; and• Chief Legal Officer (joined thecommittee at the end of 2022).
Grievances are reported through achannel, managed by an independent
supplier. Reports are received andmanaged by compliance designees,
who analyze, investigate, and closethe cases. If found substantiated,necessary action plans can be
implemented. Grievance mechanism
trends are monitored by periodical
statistics focused on whistleblowing
cases by category, country, region,
business, substantiation, anonymity,
closure time, and annual trends.
In 2022, we received a total of
238 concerns, of which 48 were
substantiated. Actions taken wererelated to disciplinary measures, therevision of policies or process, advice
or assistance, and/or trainings.

lientesguascaor of Ait
govern elegation visdand his
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S
in
i
Marellmarelli.com

38

Overview

Advanced mobility
and our innovation

Sustainabilityof our operations

Responsible
corporate citizen

Marelli people

About this report

Respect for human rights
At Marelli, upholding the highest
standards of human rights is afundamental value that we consider
non-negotiable. To underscore ourcommitment to this critical issue,
we reflect these values in our Codeof Conduct, our Human Rights
Policy, and our Slavery and Human
Trafficking Statement1. We also
ensure that our suppliers adhere
to these same principles by
incorporating them into ourcontracts and agreementswith them.

Human rights policy
and engagement
In 2021, we issued our Human Rights
Policy with the aim of managing andmitigating potential risks of humanrights violations throughout our value
chain. This policy underscores ourcommitment to avoid causing
adverse human rights impacts in
our value chain. By implementing
this policy, we are taking concrete
steps to ensure that we areconducting business in line with
relevant international standards2.
Where national law and international
human rights norms differ, Marelli will
follow the higher clause, where they
are in conflict, we will adhere tonational law, while seeking ways torespect fundamental human rights
to the greatest extent possible.

Our Human Rights Policy
covers the following topics: nodiscrimination, no harassment,
freedom of association, no childlabor, opposition to forced labor,human trafficking and any formof slavery, no retaliation, working
hours, benefits and wages,
environment, occupational
health and safety, business
partners and suppliers, andlocal communities.
To further strengthen ourcommitments to Human Rights,
in 2021 Marelli also issued a Slaveryand Human Trafficking Statementin the UK, pursuant to Section 54of the Modern Slavery Act 20153.
This sets out the steps we havetaken to address the risks of slavery
and human trafficking within ouroperations and supply chain.

HUMAN RIGHTS TRAINING

4.8 hoursof human rights
training provided
per employee during 2022

When issued in 2021, the Human
Rights Policy was published on the
Company Intranet and available toall employees. Since then, it is also
provided to new hires.

ImpactThe objective was to make sureeveryone is aware of human rights
risks and can prevent, detect, andreport any misconduct internally andin partners’ operations.
Learn more about training initiatives
on page 47

LABOR AND EMPLOYMENT: A GLOBAL PERSPECTIVE
In 2022, we launched mandatory
training on ‘Labor and Employment:
A Global Perspective’ to increaseawareness of human rights
principles. The targeted job families
were Internal Audit, Legal andCompliance, Environment Healthand Safety, Manufacturing, Human
Resources (including Communicationand External Relations), Purchasing,Quality, Supply Chain and Logistics,
as well as Sales and Marketing(including After Sales).

Impact99%

completion
rate reachednamicsRide Dy
Visiting lant in Chinap
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agem
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1

Applicable only to sites operating in the United Kingdom.

2

including the UN International Bill of Human Rights, the International Labor Organization (ILO) Declaration on Fundamental Principles and Rights at
Work, the UN Guiding Principles on Business and Human Rights, the UN Global Compact (UNGC), and the Children’s Rights and Business Principles.

3

Modern Slavery Act 2015.

39

Marelli Sustainability Report 2022

Overview

Advanced mobility
and our innovation

Sustainabilityof our operations

Responsible
corporate citizen

Marelli people

About this report

Risk management
Marelli assesses, analyses, andmanages ESG risks through an
integrated Enterprise Risk
Management process (ERM), which
is based on, and aligned with, theinternational standard ISO 31000,
Risk Management.

Our Internal Control and Risk
Management Committee oversees
and supports the risk governancesystem and internal controls, ensuringrisks are properly addressed, andpromoting a risk management culture
across the organization. As a bottom‑
up process, in 2022 the GEC reviewed
and aligned critical enterprise risks
identified by every department. By
2023, we will regularly review ourenterprise risks with the Board.

As part of this ERM process, we
identified financial liquidity as one ofour most critical enterprise risks. In
2022 we successfully completed therestructuring of our capital via the
Simplified Rehabilitation Proceedings
in Japan. As part of the revitalization
plan, we received an investment of
new equity capital by our shareholder,
KKR, and we reduced our existingbank debt. This provides the Company
with the financial stability it needs todevelop and grow.

THIRD-PARTY AUDITS
In 2022 Marelli began the process to
obtain four third party audits
on human rights, labor conditions,ethics, and environmental
management (RBA VAP) at three
Chinese and one Mexican plants.

Impact

The audits will be finishedin mid-2023.

COMPETITIVE BEHAVIOR: AI TO IMPROVE RISK MANAGEMENT
In 2022, Marelli finalized thecompetition law AI Assistant project.
We applied AI technology to scanthrough a total of 10,650 contracts
with suppliers, customers, and othercommercial partners, to detectinstances of risks mentioned in
the public domain and assign anautomatic risk score. The
automatic scoring system gave
us three different outcomes:
potentially High-Risk documents
for a total of four contracts,
potentially Medium-Risk for
165 contracts, and Low-Risk forthe remaining contracts.

The legal department refined thescreening by analyzing anti-trust
results, while external expert
consultants implemented therevision of the four most critical(High-Risk) cases.

ImpactThe overall results were positivesince we have been able to further
refine contracts, reducing
the overall risks to lowscore values.

marelli.com

40

Overview

Advanced mobility
and our innovation

Sustainabilityof our operations

Responsible
corporate citizen

Marelli people

About this report

Data responsibility
After reviewing our materiality
matrix, we are now renaming our
information security and data
privacy as data responsibility.
Essentially it means preventing theleakage of information due totargeted cyber-terrorism or similar
acts as well as protecting personal
information and privacy.
New data on cyberattack trends cites
a 38% increase in global attacks in
2022, compared to 20211.
Marelli is exposed to the risks ofcyberattacks on both our IT andmanufacturing infrastructure and our
products. With growing revenues fromsoftware products and increasing data
in clouds and data sharing, the levelof threats to which we are exposed
is increasing and we need to further
increase our security posture.

DATA SECURITY WITHINOUR SUPPLY CHAIN
How we manage data security
within our supply chain:• Classifying the risk exposureof our suppliers, in agreementwith purchasing department.
We monitor their ability to resist
disruptive cyber-attacks, as wellas to handle confidential
information. Suppliers with ahigh level of cyber risk exposure
are not considered in tenders forcritical projects or activities; and• Assessing the certifications ofengineering suppliers and othersuppliers, as well as how theyassess themselves against
cyber threats. In 2023, we will
also monitor the exposure
through the implementationof a new tool.

To contain and prevent risks, Marelli has developed a cyber-defense
strategy across the following pillars:• A dedicated team that monitors andcollects information from the security
system, able to detect and notify
users in case of security concerns,
addressing potential cyber-attacks
and starting an immediate response;• An IT contingency plan includedin the wider Continuity of Businessprocedure to improve and speed
up the response against the mostcommon and critical cyberattack
scenarios;• A Privacy Policy, which regulates theretention and measures for gaining
stakeholder consent regarding theprocessing, sharing, and retentionof confidential information online;• A Cybersecurity Management
System (CSMS) aligned with ISO
21434 standards, which assesses
potential vulnerabilities andexposure of our products tocyberattacks, along the entire life
cycle. This robust system warrantsthat our products are designed,
developed, and manufactured in asecure information technology (IT)and operational technology (OT)
environment. It also protects our
products from cyberattacks; and• A whistleblowing mechanism forstakeholders to report information
security concerns. Learn more
about our Integrity Hotline in the
Responsible corporate citizen
chapter (page 38);
• A training program for each
employee was rolled out and focusedon recognizing phishing, fraud, or
malware attacks, and notifying thecentral security team to avoid further
impacts. In 2022, training provided to
our white-collar employees wascompleted by 76% of users;• An information security
management system (ISMS).
17 sites have an ISMS as per the
Trusted Information Security
Assessment Exchange (TISAX)
certification, one site has an ISMS
according to ISO 27000, and onesite has an ISMS according to
SWIFT Attestation. In 2023, we
aim to gain nine additional
certifications.

By 2023, Marelli is planning two further improvementsthat will contribute to our cyber security strategy:• The deployment of innovative data
loss prevention tools based on new
improved data classification rules(e.g. confidentiality, sectorial) toimmediately block data as soon as
the information reaches external
non-authorized users.

• The release of a global policy on
products, aligned with the UNECE(United Nations Economic
Commission for Europe) regulation
R155.

The cybersecurity of products is a key focus. Regulations and customers requirecapacity to monitor vulnerability of products. We have created our own system thatmonitors cyber risks and creates a monitoring report for customers.

141

blog.checkpoint.com/2023/01/05/38-increase-in-2022-global-cyberattacks/

Marelli Sustainability Report 2022

Overview

Advanced mobility
and our innovation

Sustainabilityof our operations

Responsible
corporate citizen

Marelli people

About this report

Data responsibility continued

PERFORMANCE HIGHLIGHTS

To improve data security in 2022,
we kept raising barriers against
cyber criminals through:• Extending the multifactor
authentication to external
contractors;• Strengthening the remote
access infrastructure (home andmanufacturing plants); and• Continuing to support the users,
increasing the awareness, andunderstanding of thecybersecurity system.

IN-HOUSE VULNERABILITY MANAGEMENT SOFTWAREDEVELOPMENT IN MARELLIThe United Nations Economic
Commission for Europe1 requiresthat vehicles and components
are monitored for the presenceof vulnerabilities during their fulllifecycle. To do this, we developed adedicated software platform called
the ‘Vulnerability Management
Platform’. This platform maintains a
database of hardware and softwarebill of materials and utilizes threat
intelligence information to verify andassess vulnerabilities. The platform
classifies vulnerabilities according totheir severity and generates reports
for our customers.

Sustainability in supply chain

Purchasing is going through a major transformationand sustainability is one of the pillars.
In 2022, we started to assess our supplier base by identifying criticalsuppliers and collecting primary data. Our whole purchasingorganization is aware of sustainability in the sourcing process.
Andy Koehler, Chief Purchasing Officer
By prioritizing sustainability, weenhance the resilience of our supply
chain. In fact, a growing number ofcustomers are now integrating
sustainability targets in their
quotation processes, with supply
chain sustainability being a vital
factor in their decision-making.
Building a responsible and resilient
supply chain is a top priority for everyorganization to ensure the continuityof supply and avoid businessdisruptions. At Marelli, a dedicatedPurchasing Department engages withlocal and global partners to ensure all
our products and services suppliers
comply with the terms and conditions
set out in our standard Marelli

1

Purchase Agreement, which mandates
compliance with the UN Principles forInternational Human Rights Protection
and Environmental Stewardship.
Supply chain risks are identified
through our external AI platform
provider, Resilinc, which predicts
potential disruptions periodically bymapping and monitoring the ESG,
macro-economic, geo-political, andnatural disaster risks that all direct
and indirect suppliers are facing.
Through this AI-powered solution,
we can prepare for delivery delays,
price movements, and supply
constraints for raw materials andcommodities before they happen.

ImpactFor Marelli, this means being
aware of any known vulnerabilities
not only in our products but
also in the third-party hardware
and software components
we used in our products.

IT Days2022 inCluj-Nain Romapoca,
nia withoutaking p
art as a r Cluj Team
partner
platinum

Resilinc – Supplier
Sustainability Audit

At Marelli we monitor risks of all
direct material suppliers using
an AI platform applied worldwide– collecting information on
economic, geopolitical, bribery,corruption, and sustainability
claims. Risks are quantified anda resiliency risk score is assigned.
100% of active suppliers aremonitored there.
The Resilinc platform has a
network of more than 108 million
publicly available sources, andit collects information on newsand events in key risk topics(e.g. geopolitical, bribery,corruption, investigations, andsustainability claims). It operates
in over 50 languages. Wheneverrisks emerge, Marelli is notified
and given 24/7 updates on how
suppliers are being impacted.
Results have shown that less than
2% of Marelli’s suppliers have highresiliency risk, while the remaining
98% suppliers have medium or
low resiliency risk. For those inhigh-risk locations, Marelli is
implementing preventative andcorrective actions.

UNECE WP.29 R155 regulation.

marelli.com

42

Advanced mobility
and our innovation

Overview

Sustainabilityof our operations

Responsible
corporate citizen

Marelli people

About this report

Sustainability in supply chain continued

PERFORMANCE HIGHLIGHTSEngaging and assessing
our suppliers

potential risks and events that could
impact our supply chain. During
these meetings, we identify andimplement mitigative actions andprovide clarification to our suppliers
as needed; andIn 2022, we launched new initiatives
to engage suppliers in improving
their sustainability performance,
including:• Training sessions on risk
management for suppliers,
covering topics such as theimportance of having a strong
business continuity plan for theirresiliency or having a sustainability
plan in line with market
expectations;• Weekly management meetings
held by the purchasing
department with the supply
chain department, to address

Despite our challenges in engaging
with suppliers to collect quality data,
we continue to maintain strong,long-term partnerships with all our
suppliers. We engage with them
periodically and communicate our
expectations proactively through our
Supplier Quality Target Letter which
outlines Marelli’s commitments to
ESG. We are aware that adapting tosustainability expectations may resultin increased costs for our suppliers.
However, we plan to engage with our
main suppliers and work together tomitigate costs at our utmost capacity,by finding the right opportunities
with a feasible return to benefit
the automotive industry which ismoving as a whole towards a more
resilient supply chain. We foresee
opportunities in decreasing energy
costs by being more efficient, reducing
the variability of our specifications,and through supply chain localization.

• A revised sustainability questionnairewith more than 100 questions formaterial suppliers (26% of Marelli’s
total nominated suppliers in 2022) toprovide evidence of the integrationof sustainability in their processes
and systems. We analyze suppliers’
responses and score their level ofmaturity and ESG performance(Learn more about suppliers’ ESG
performance data in the GRI
content index). It includes a new
focus on carbon footprint, content

Japan &
Korea
9%
ASEAN,
China &
India
22%

43

Learn more about suppliers’ ESG
performance data in the GRI
content index

Non-compliance procedure

When Marelli identifies areasof concern or supplier noncompliance with respect to our
Supplier Sustainability Audit or the
self-assessment questionnaire, we
engage directly with them to request
further clarifications and provide a
tailor-made corrective action planwith an agreed deadline. Failure to
implement corrective actions can drive
Marelli’s decision to put the supplier onhold status and restrict futurebusiness relationships. In the past five
years, only one supplier relationshipwas terminated as a result of thisprocess. There were no instances ofsupplier relationship terminations in
2022. Improvements were agreed
upon as a result of the assessment for
suppliers with identified significant
actual and potential negative impacts:
15.6% for environmental impacts and
30% for social impacts.

Suppliers’ social impact
assessment in 2022

Suppliers’ environmental
impact assessment in 2022

147

147

20
6

2022 procurement budget
spent on suppliersSouth America
6%of recycled material, andproduction with renewable energy
in our supplier sustainability
self-assessment, which previously
mainly focused on social-related
aspects. This includes developing
a carbon neutral roadmap(including Scope 3 emissions)and subsequently evaluating our
suppliers’ maturity on this topic.
To date, the topic of D&I is mapped
only for North America suppliers,
in line with national legislation.
However, Marelli intends toexpand the D&I assessment to
all locations.

Europe41%

North
America
22%

Marelli Sustainability Report 2022

32
5

Suppliers assessed forsocial impacts

Suppliers assessed forenvironmental impacts

Suppliers identified as having
significant actual and potential
negative social impacts

Suppliers identified as having
significant actual and potential
negative environmental impacts

Suppliers identified as having
significant actual and potential
negative social impacts with which
improvements were agreed upon
as a result of assessment

Suppliers identified as having
significant actual and potential
negative environmental impacts
with which improvements wereagreed upon as a result of assessment

Overview

Advanced mobility
and our innovation

Sustainabilityof our operations

Responsible
corporate citizen

Marelli people

About this report

Sustainability in supply chain continued
Supply chain policies
and procedures

In 2022, 87% of active suppliers
accepted our Code of Conduct. Annually,
we require our suppliers to comply
with applicable laws and regulations
including the European Regulation on
Registration, Evaluation, Authorization
and Restriction of Chemicals (REACH).
We have also further expanded
our procedure for conflict minerals
to other minerals extracted fromconflict zones, which may be linked tohuman rights abuses. By 2023, we areplanning to become a member of the
Responsible Minerals Initiative (RMI)
and have already released our first
Marelli Supplier Sustainability Policy.
Our suppliers are also required torespect the Organization for Economic
Co-operation and Development (OECD)and the RMI guidelines. We are working
on the update of the Due Diligenceprogram, expected to be implemented
in 2023 to additionally align compliancewith the highest standards of
responsible business management inour entire supply chain.
We implemented the following
activities to identify, assess, andmitigate conflict mineral risks in our
supply chain:• Make the use of conflict minerals KPI
as a criterion for the supplierselection process;• Require selected suppliers to fill out
the Conflict Minerals Reporting
Template (CMRT) and Extended
Minerals Reporting Template (EMRT)
or formally state their non-use of
any conflict minerals;• Track and be attentive to suppliers’
answers; and• Inform suppliers about conflictmineral issues through written
communication and request acorrective action plan.
On an annual basis, we require our
suppliers to disclose the source(s)of any conflict minerals used intheir products and comply withapplicable laws and regulations.
Dedicated email accounts have beencreated to track our communication
with suppliers. Marelli will continue
to engage with suppliers to monitor
their performance, raise awarenessto minimize potential negative
impacts, and promote positive
initiatives throughout our supply
chain operations.

Supply chain training

In 2022, the entire purchasing
department (1,019 users)
was assigned to training onsustainability procurement,
requiring a test completion at theend. In 2023, we plan to extend thetraining to additional employees.

LOCALIZING NORTH AMERICA’S SUPPLY CHAIN
TO BE FIT FOR THE FUTURE
Since early 2022, Marelli’s North
American purchasing team is piloting
an initiative to maximize purchasingfrom local suppliers, prioritize local
supplier development, and sourcing
on new models. Our key activities
to accomplish this include:• Strategic international suppliers
opening new facilities in Mexico;• Increasing the local supplier panel
and current supplier capacities inhigh-volume core commodities;• Insourcing strategic commodities
filling internal capacity; and• Developing and qualifying
internally local raw materials
replacing internationallyspecified grades.

Our Commercial teams are also
supporting negotiations of moresustainable and optimized supply
chain structures with our OEM
customers. Finally, we are testing alogistics cost calculator developed
internally to ensure new supplierselection at sourcing is done
including the cost of transportation,
warehousing, custom clearance, etc.

LOGISTICS EFFORTS TO
REDUCE EMISSIONSThe Logistics Department is
promoting the use of plastic/
steel returnable boxes tominimize waste and to contributeto the reduction of Scope 3CO2e emissions. Long-distancetransport remains challenging
due to the cost of returning
returnable boxes. Hence, Marelli is
considering alternative solutions,such as the use of rental services
for containers.

33

warehouserents revoked
in 2022 by MarelliThis was out of a total of 167,
leading to a reduction of thetotal consumption of electricity
for warehouses and, therefore,
lessening our CO2e emissions.

ImpactBoth these activities will lessen
our GHG emissions and willcontinue to be strongly promoted
throughout 2023.

By 2023, we are planningto become a member ofthe Responsible Minerals
Initiative (RMI) andhave already released
our first Marelli Supplier
Sustainability Policy.

ImpactThis simplification is necessary
to ensure the continuity of supply
for our operations in today’s
volatile market.

marelli.com

44

Advanced mobility
and our innovation

Overview

Sustainabilityof our operations

Responsible
corporate citizen

Marelli people

About this report

Where

diversity

Marelli people
We aim to become a more attractive
company in all regions where we operate,by understanding the different contextsof each country and the associatedrequirements. We are working with
HR functions at local level to understandthe labor market scenarios and position
ourselves as a great place to work.

promotes

inclusion
45

MarelliSustainability
Marelli
SustainabilityReport
Report2022
2022

Overview

Advanced mobility
and our innovation

Sustainabilityof our operations

Responsible
corporate citizen

Marelli people

About this report

Employee engagement

Marelli has embraced diversity as a core value from the very beginning. We wanteveryone in our company to feel respected, treated fairly, and comfortable being
themselves at work. We recognize the value of diverse voices and see inclusivity
and employee well-being as key facets of success.
Sherry Vasa, Chief Human Resources Officer

Marelli’s goal is to offer fair, diverse,
and equal opportunities for all
employees through the developmentof a sound human resources (HR)management system.
The development of our HR policies,
procedures, and management
systems is a core element of ourvision. We promote open andconstructive dialogue with employee
representatives, and a collaborative
relationship with local communities
and institutions. People-related topics
are discussed at the Nomination,
Governance, and Human CapitalCommittee quarterly and at the GEC
monthly meetings.

Challenges remain related to ourcentralized HR structure, which has yet
to reach the level of flexibility requiredby a large and diversified workforce
and the diverse social contexts weoperate in (50,368 employees in four
regions of operations: EMEA, APAC,
NAM, and LATAM). In 2022, welaunched a program to develop andempower our local HR departments tobe aligned with local cultures andspecific market structures to enable
our people to thrive in an inclusive
environment and improve Marelli’s
attractiveness as an employer in all
our locations. Actions such as
improved communication with
employees, compensation policies
put in place, and focus on employee
recognition resulted in employee
turnover improvement (compared
to 2021) in China (35%), India (37%),
Slovakia (3%), Turkey (25%) andRomania (31%).

THE POWER OF WORDS
In 2022, we implemented theinitiative ‘The Power of Words’ at the
Modugno Plant in Italy to promote
positive and direct communication
among colleagues.

New hires in 2022 accounted for 9,967
permanent employees (hiring rate of
20.61%) while leavers were 13,687(leavers rate of 27.17%). The higher
number of leavers in 2022 comparedto the hires are due to the launch of a
restructuring program called Skyline,
which contributed to the reduction of
about 3,000 employees.
Learn more about the Skyline projecton page 40 and 51

50,368
employees infour regionsof operations

9,967

new permanent
employee hires
in 2022

PERFORMANCE HIGHLIGHTS

Impact

The initiative resulted in colleagues
refraining from using email for one
day, relying purely on direct verbal
communication, resulting in great
results and positive feedback.

Great place to work survey

The results of the Great Place To
Work survey (GPTW) conducted in
2021 fed into the development ofaction plans in each Division. From
Diversity and Inclusion to training
and employee well-being, we havefurther strengthened our positive
workplace culture in line withsuggestions from our employees.
From 2023, we plan to conduct thesurvey annually since it has provenuseful in understanding andmonitoring our workplace culture
and environment.

marelli.com

46

Overview

Advanced mobility
and our innovation

Sustainabilityof our operations

Responsible
corporate citizen

Marelli people

About this report

Employee training and development
2022 was a year of reorganization for the Global Learning and Development functions to align the services offeredwith the new Marelli employee training strategy.
In 2022, we updated Marelli’s training strategy and redesigned a wide range of processes that we plan to deliver during 2023.
2022

Revamped andimplemented
Strengthen Performance Evaluation
process
Implemented Goal-Setting Menu
process for all salaried
Pilot Onboarding Experience
for new joiners
Simplified Recruitment system andprocess, improved governance2023

New launches

Started Diversity and Inclusionbusiness focus:• Marelli Women;• Sponsorship Programfor Diverse Employees; and• Global Diversity Council.

Projects
launched
First group of Generation MarelliGreat Place to Work survey launch
in July 2023
Global Rewards and Recognition
program

Launched new Marelli Attributes

Focused programs forMarelli University

Improved Talent Review andSuccession Planning

Employee Value Proposition (EVP)
Plant Critical Succession Planning
Fully implement Onboarding program

GENERATION MARELLIAt the end of 2022, the first groupof nominated Millennials andGeneration Zoomers employees
began to support the Executive Teamon strategic initiatives.
The program, called Generation
Marelli, includes Mentoring andReverse Mentoring with our Top
Leadership, with global and strategic
projects assigned throughout 2023.

47

Marelli Sustainability Report 2022

Prodplan uction
at E
t in
l
Kod
ama ectron, Ja pics
anOverview

Advanced mobility
and our innovation

Sustainabilityof our operations

Responsible
corporate citizen

Marelli people

About this report

Employee training and development continued

PERFORMANCE HIGHLIGHTS

In 2022, Marelli updated its annual
performance evaluation process
for all employees, using a ‘Success
Factors Tool’, which evaluates
results on a scale of one to five,from non-performer up to
outstanding performer.

The evaluation process also includes
dialogues between employees andtheir managers to better tailor specificdevelopment plans according toemployee needs.

Impact

The total hours of training provided to
employees increased from 8.22 hours
per employee in 2021 to 8.53 in 2022.
The overall hours of training provided
in 2022 are disclosed in the below
pie chart.

Additionally, a wide range of local
initiatives supported the re-skillingand up-skilling of employees, such as
in the Bari plant in Italy where training
was provided to help the transition
from traditional Powertrain to ElectricPowertrain Operations, financed by
the regional authority.

• Focused program for Marelli
University, which includes:

Total hours of training provided
to employees in 2022of employees
receiving regularperformance andcareer development
reviews

Learn more about the electrification
trend in the Advanced mobility andinnovation chapter on page 16

Our employee training development
plans adhere also to our succession
plan to replace key positions in case of
unplanned departure or succession.
As for the foreseen projects, among
others, in 2023 we will be launching:
Diversity, discrimination,and harassment training

18,429Health and Safety training

81,702

Human Rights training

4,814

Business Ethics andCompliance trainings

1,440

Cyber Security andData Privacy training

19,715Training on Manufacturing
Management System(Monozukuri and WorldClass Manufacturing)

12,41163%– My e-learning library:
an on-demand e-learning
platform;– Finance for non-finance: toenable all employees acrossMarelli to have a basic awarenessof Finance;– Impactful presentation: toenhance Directors’ capability tobuild impactful presentations; and– First-time Managers: toenable successful transitions
to People Managers.

• Global Rewards and Recognition
program, allowing employees toreceive awards from their managers
and co-workers.

engin
ee
telem rs managineg the
THE Le try servicesMans’
24 HOU AT
RS racemerMarelli community sum
ter inparty AT the R&D cen
Cluj, Romania

Formaretraining

in Brazil

marelli.com

48

Advanced mobility
and our innovation

Overview

Sustainabilityof our operations

Responsible
corporate citizen

Marelli people

About this report

Diversity & Inclusion
Diversity is a fundamental part of ourcompany culture, ingrained since our
inception. Our mission is to harness
the power of individuality and uniqueperspectives, leveraging them toachieve our business objectives. By
embracing diverse ways of thinking,we aim to make a positive impact
and foster an environment where
everyone feels valued and included.

MARELLI WOMEN
Marelli Women is a community thatwas set up in 2022 to support the
professional growth of women
within our company by creating
opportunities to increase their
network, share work experiences,and facilitate collaboration. The firststep was the creation of a networkof 67 representatives at the regional,
country, and plant levels to helporganize local initiatives and regional
events hosted by our President andCEO. We developed voluntary
teams around each of thelocal representatives.

As a company with global operations,a wide range of different social andcultural backgrounds has always
been considered a strength. As
stated in our Code of Conduct, we donot tolerate any activity that creates
an intimidating, discriminatory,
demeaning, or offensive work
environment, which can beanonymously reported in ourMarelli’s Integrity Hotline.
Learn more about the integrity Hotline
in the Responsible corporate citizen
chapter on page 38

At the beginning of 2022, we launched
our D&I Journey, led by the Global
Diversity Council. This Council iscomposed of 11 employees from all
regions and its objective is review
with the D&I Team to carry out
concrete actions across the company.
Our Global Diversity Council which
was started in 2022 now provides
guidance to our Diversity Team.

lity
ent Qua
Excell remony
Ce
Award

MarelliW
at Electr omen EMEA Event
onics Co
plant inrbettaItaly

49

Marelli Sustainability Report 2022

Impact

The Marelli Women community
counted 824 members worldwide at
the end of 2022. We are currently at
2570 employees that signed up to bepart of this movement as of the endof March, 2023. Each region may
select an area of interest to conductlocal initiatives. For instance, the USA
branches of the community decided
to focus on awareness, the Mexicobranches on the prevention ofdomestic violence, and the Brazil
branches on women’s leadership.

Overview

Advanced mobility
and our innovation

Sustainabilityof our operations

Responsible
corporate citizen

Marelli people

About this report

Diversity & Inclusion continued

PERFORMANCE HIGHLIGHTS

As a part of the D&I Program,different initiatives were launchedin 2022, including:Marelli Women in Leadership
positions (Director Level and above):• A sponsorship program focused on
mentorship and skills development
to increase the number of womenin leadership positions from10.77% in 2021, to 25% by 2025.
The percentage has alreadyincreased to 12.61% in 2022, andour 2023 target is 18%. Currently,
36 female employees participate
in this program, which will last
two years;

Total number of employees(directly employed by Marelli)1

58,0772021

54,05850,3682020

1,200+

colleagues
participated in the
Marelli Pride Month
Survey in June 2022

2021

2020
2021
2022

2022

8,124
4,518
4,203
2020

2021

2022

14,522 15,702 14,926

Of which
women

1,219

670

657

Of which men

37,837 38,356 35,441

Of which men

6,656

3,848

3,546

Number of salaried employees

Number of hourly employees

14,0832021

14,7392022• More than 1,200 colleagues
participated in the Marelli Pride
Month Survey in June 2022. 90% of
respondents stated that it isimportant that Marelli supports.
Initiatives such as Pride Month to
make LGBTQIA+ colleagues feel
comfortable in the workplace
and to raise awareness.

• Mandatory D&I training for
all employees to improve theirawareness of unconscious biases
and D&I issues in the workplace.

Of which
women

2020

Marelli Pride Month Survey:

Number of managers

2020

2022

• An enhanced recruitment plan
deployed regionally to increase theshare of women in the workforce
from 29.6% in 2022 to 40% by 2025.
This includes partnerships with both
external recruiters and local HR
Managers to ensure higher visibility
and exposure for women candidates
at all levels, without diminishing theimportance of a fair and meritocratic
selection process; and13,220Gender distribution top management(directors and above)2020

35,87020202

34,8012021

32,945

2022

2021
2022
2020

Mar
e
Japa lli Wom
Dive n, to su en evenrsit
py at port G t in Sait
ama
the
e
,
wor nder
kpla
ce

2020

2021

2022

2021

Of which
women

3,387

4,048

3,783

Of which
women

9,916 10,984 10,486

Of which men

8,966 10,691

9,437

Of which men

22,215 23,817 22,458

560
650

3

2022

571
2020

2021

2022

Of which
women

47

70

72

Of which men

513

580

499

1

Data not included for employees working in Mexico and the United States during 2020 for whom gender information is unavailable.
Learn more about employee’s data in the GRI content index.

2

Data for 2020 do not include the number of people for whom gender information is unavailable (i.e. 5,718 total number of employees, 38 directors andabove, 249 managers, 1,730 salaried employees and 3,739 hourly employees).

3

Data for 2022 do not include the number of people for whom gender information is unavailable (i.e. 1 total number of employee, 1 hourly employee).

marelli.com

50

Advanced mobility
and our innovation

Overview

Sustainabilityof our operations

Responsible
corporate citizen

Marelli people

About this report

Labor relations
Marelli is committed to guaranteeing
fair labor conditions to all employees
and engages with Trade Unions andother workers’ associations in open
dialogue to foster constructive
relationships.

INTERACTIVE COMMUNICATION SESSIONS WITHEMPLOYEES REGARDING WORKING CONDITIONS
1) The dialogue with employees is apriority. Town Halls are organizedperiodically and are followed by
Q&A sessions.

Collective bargaining
agreements
Marelli engages with Trade Unions andemployee representatives to reachconsensus-based solutions for any
employee-related issues that may arise.
Under our Human Rights Policy, Marelli
recognizes the rights of its employees
to form or take part, freely, in tradeunions or other organizations aimed
at defending and promoting theirinterests, in accordance with local law.
Throughout 2022, our discussions
centered around ensuring thecontinued sustainability of ourcompany’s operations amidst
challenging market conditions. These
challenges included the impact of
global inflation, ongoing supply chaindifficulties, and rising costs ofessential components, raw materials,
and energy. In addition, theautomotive industry faced aparticularly critical situation, with
global vehicle production still well
below pre-COVID levels andprojections indicating further declines
in 2023 compared to 2022.
Marelli’s executive management
presented the Trade Unions with acomprehensive plan to address thesemarket dynamics, aimed at achieving
growth and economic sustainability.
To achieve this goal, we are placing an
increased emphasis on innovation,
including co-creating products andsolutions with our valued clients andpartners. Additionally, we are investingin safety, process efficiency, andbuilding improvements to enhance
the quality of life and work within oursites. At the same time, we recognize
the importance of simplifying and78%

of Marelli employees
were covered bycollective bargaining
agreements at the end of 2022

streamlining our processes, as well as
maximizing efficiency in fixed costs
through targeted measures.
Consequently, in 2022 Marelliannounced an internal restructuring
project, aiming to reduce indirect
headcount by about 3,000 employees1.
We largely managed the restructuring
plan in each country through voluntary
solutions such as incentives and theprovision of outplacement services
that were agreed with our Unions andWork Councils.
At the end of 2022, collective
bargaining agreements covered 78% ofMarelli employees (38,976 employees)2.
Among employees not covered by suchagreements, more than 94% benefit
from better conditions than theminimum requirements by law.
In some regions, such as Italy, Marelli
has negotiated specific contracts with
unions to regulate the operations of
the company.
Marelli has confirmed its intention tocontinue with constructive discussions
with social partners to set out anegotiated process characterized bysocial responsibility toward the people
and the territories concerned.

2) I nside Marelli: Periodicallypublished journal in eightlanguages (English, Japanese,
Portuguese, Spanish, Polish,
Italian, Chinese, and German)onthe latest and most interestingnews at both local and global level.

Marelli qualifies as a European
Community-scale group ofundertakings3 and is therefore
subject to regulations designed
to ensure the rights of employees
to access information and/or
consultation processes. In
January 2023, our special
negotiating body (SNB) reached
an agreement to establish an
EWC (European Works Councils),
which will also serve as aframework for presenting andsharing Marelli’s most relevantSocial Responsibility initiatives at
the EU level.

Employee representatives
Employee representatives4 covered
61.5% of Marelli’s total employees5 in
2022. They have the right to be
informed, consulted, and to enter
negotiations on matters that may
concern benefits and operational
issues as defined by law or applicablecollective agreements.

Labor unrest
In 2022, the overall levels of labor
unrest6 and local labor actions inMarelli’s Group companies were very
low. The only significant episodes werein Germany (Reutlingen andBrotterode) with three warning strikes
each one, without stopping or
damaging seriously any OEMs.

1

All indirect employees.

5

Survey conducted on 99.1% of Marelli’s’ global headcount.

2

Survey conducted on 99.2% of Marelli’s’ global headcount.

6

3

According to Directive 2009/38/EC.

4

In most countries the establishment of employee representative bodies
is foreseen for companies and/or sites where the number of employees
exceeds the thresholds specified by national laws or procedures. In
others, the employer is required to execute a labor managementagreement with the employee representative on specific issues in casea trade union representing a majority of employees in the workplace ismissing, while in North America, representative bodies are only present
at sites where a trade union is already established.

In November 2022, Marelli Automotive Lighting Reutlingen GmbH andMarelli Automotive Lighting Brotterode sites were involved in threeminor warning strikes in reference to the collective bargaining
agreement on wages. The strikes aimed to support the collective wage
negotiation and had no negative effect on Marelli’s customers. The
strikes concluded with an agreement signed by IGM (Unions) andemployers’ associations at the national level in Germany, with no direct
involvement of Marelli.

51

Marelli Sustainability Report 2022

Overview

Advanced mobility
and our innovation

Sustainabilityof our operations

Responsible
corporate citizen

Marelli people

About this report

Employee well-being
We are committed to creating aworkplace that prioritizes andfosters the well-being of ouremployees. In our efforts to achieve
this goal, we continually evaluate
and enhance our benefits offerings
to ensure they remain competitive inthe locations where we operate.

PERFORMANCE HIGHLIGHTS
Marelli Employees worldwide eligible for benefits

Supplementary
retirement plans

We are committed to providing andsupporting our employees’ well-being
by offering competitive benefits
packages beyond salary incentives.
While our benefits may vary bylocation or country and employment
status, we ensure that all our
employees have access to benefitsaligned with industry standards,
government regulations, and anyother specific needs.

• A monthly support for regional
public transportation services
in Germany;• A gym club membershipreimbursement program in Brazil;• Scholarships awards for the
best-performing employees’
children in Italy and Poland;

55%

Financial support fordisability/invalidity

58%

Life insurance

60%

Employee cafeteria
or lunch vouchers

81%

Childcare

41%

Wellness andnutrition programs

For instance, one of the initiatives thathas spread among Marelli’s locations
is the smart working mode, especiallyin South America, Europe, and China.
Among location-based benefits, someexamples include:

40%

Company-provided
health plans

53%

Gym/fitness services

29%

Total number of employees that wereentitled to parental leave1

Total number of employees that tookparental leave

2020

2020

13,5662021

39,0592022

36,619

550

2021

1,870

2022

2,919

36,619• Free access to online libraries
in Romania; and2,919

employees entitledto parental leavein 2022• Healthcare support plans in Italy,
Romania, Brazil, UK, including,among others, medical checkups,
life, and medical insurance.

employees tookparental leavein 2022

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

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

2020

2020

2021
2022

281

2021

1,547
2,622

235
902

2022

2,142

MES
PAN WELCOMARELLI JA M THE REMOTE
O
FR
TS
EN
STUD
IMA
TOKUNOSH
ISLAND OF
1

Temporary workers and those hired by agencies are entitled to parental leave, both men andwomen. We also require external providers to respect the local labor laws.

marelli.com

52

Advanced mobility
and our innovation

Overview

Sustainabilityof our operations

Responsible
corporate citizen

Marelli people

About this reportSocial contribution
Marelli is fully committed to making a positive impact in
the communities where our facilities are located. To thisend, we actively participate in CSR projects that prioritize
education, skill development, and disaster response
initiatives through support to non-governmentalorganizations (NGOs).
In 2022, we delivered hundreds of initiatives worldwide tosupport local communities. Significant examples include:

For the sec
took part ond year, Marelli
in the ‘Gr
Recapte’eatcharity pr
oject

USA
Hosted student robotics team tohelp them practice their competition
requirements and show their workin our Southfield office.

Saltillo

Academic
CelebrSPA IN‘Great Recapte’ (collection campaign)
1,000 kg of food was donated to the‘Banc dels Aliments’, which reachedmore than 8,500 people.

ation

MEX ICOMarelli Women Group in Mexico identified a platform for
helping women in domestic violence situations to receive
legal and psychological support.
Provision of school supplies and gift cards to childrenof team members with high academic scores at our Saltillo
and Juárez locations.

BR A ZIL
Recycle Material donation: Supported 34 families ofcollectors in Lavras with the provision of 71 metric tonnesof recycling material.
Formare: Volunteering training for young adults fromunderserved local communities. In 2022, 274 students
were trained.

Formare tr

ainingrial donation
Recycling mateilaz
in Lavras, Br

53

Marelli Sustainability Report 2022

Extra Scholarship Activities: Laptop and scholarshipmaterial donation, together with the support on
extracurricular activities, which benefited 150 children
in the city of Amparo.
Drug use prevention: T-Shirt donation to the Brazilian
Educational Program for Resistance to Drugs and Violencein the city of Amparo.

Overview

Advanced mobility
and our innovation

Sustainabilityof our operations

Responsible
corporate citizen

Marelli people

About this reportSocial contributions continued

FR ANCEThe pink ribbon: Support the‘pink wave’ event to inform andeducate women about theimportance of periodic screening
against breast cancer.
Easter Eg
g
in Poland Competition
Ceremogover ny at the Sa
nor’sit
office ama, in Japan

POL AND
Collection for theMunicipal Animal Shelterin Sosnowiec to help animals
survive during the winter season.

JAPAN‘Marelli Next Generation
Scholarship’ was delivered to two
students of the Saitama community
to support their studies abroad.

‘World Environment Day’:A little forest close to AL&S plant in
Sosnowiec was cleaned from humanwaste thanks to our colleagues thatcollected 80 bags of garbage during
six events.

Donation of high visibility traffic
safety covers to more than 11,000
Saitama community students to
reduce traffic accidents.
Partnership with Saitama Prefecture
Forestry for Mangrove Regeneration.

INDI A
SARD world on wheels: Marelli participated in a Joint CSR
project with HP India to deliver a fully technologicallyequipped bus for 17 schools in Delhi (reaching 4,505
beneficiaries) together with infrastructure development
initiatives (such as science lab upgrades and maintenance), toenhance the learning experience focusing on STEM education.
Healthcare support: Sanitary napkin vending machines
installed at 10 government schools in Gurugram to promotehygiene and health practices.

Blood donation at
plant in
Guangzho
China
u

CHINA
Blood Donation Camp in the Guangzhou
plant that benefited 48 people.
Marelli-care package to mitigate food shortages for
employees living in the Shanghai area during COVID-19
government restrictions.
Child care: Guangzhou plant donated stationery supplies
to students for the new semester.
s
visit
els
w he
n
o
ld
ndia
wor
nt, I
SARD sar plae
Ma nmarelli.com

54

Overview

Advanced mobility
and our innovation

Sustainabilityof our operations

About this report
Materiality matrix review
GRI tables
About this report

55

56
57
75

Marelli Sustainability Report 2022

Responsible
corporate citizen

Marelli people

About this reportOverview

Advanced mobility
and our innovation

Sustainabilityof our operations

Responsible
corporate citizen

Marelli people

About this report

Materiality matrix review
Material topics in 2019

Material topics in 2022

Objective of the update

Water Conservation

Water

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

Occupational Health & Safety

Occupational Health & Safety

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

Social Contribution

Social Contribution

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

Sustainable Supply Chain

Sustainability in Supply Chain

Sustainable impact of our logistics and supply chain

Diversity & Inclusion

Diversity & Inclusion

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

Respecting Human Rights

Respect for Human Rights

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

Climate Change

Climate Change & Action /Energy Management

Alignment with ESG standards/regulations
Measure its greenhouse gas emissions and develop and implement businessrelevant decarbonization plans

Effective Use and Reuse
of Resources

Circular Economy Design

Alignment with ESG standards/regulations (SASB) Auto parts manufacturers candesign their parts to be easily recyclable and reusable and can apply modularity
principles to product design

Excellence in Monozukuri

Product Safety & Quality

This topic has been renamed as “Product safety & quality” defined by SASB as
Through effective management of product safety, auto parts companies canenhance their reputation and drive higher sales over the long term

Prevention of Pollution
and Biodiversity

Toxic Emissions
Biodiversity

This topic has been divided into two topics as “Toxic Emissions” The potential
environmental contamination and toxic or carcinogenic emissions arising fromoperations and “Biodiversity” The potential impact of operations on biodiversity inareas of operation and efforts to manage the environmental impact of operations

Responsible Business
Management

Governance & Compliance

Alignment with ESG standards/regulations (MSCI) 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

Fair Labor Conditions

Labor Relations

Alignment with ESG standards/regulations (MSCI) The relationship between
management and labor, the strength of worker protections

Information Security andProtection of Data Privacy

Data Responsibility

Request of our shareholder: Manage data responsibly, which includes mitigating
cybersecurity risks, promoting a culture of cyber awareness, and handling personalor sensitive data responsibly

Employer of Choice

Employee Engagement

Request of our shareholder: Have a strategy in place for fostering a diverse andhighly engaged workforce

CONFIRMED TOPICS (6)UPDATED TOPICS (9)Investment in New Technology –This topic has been updated and combined with Climate Change/ Energy
Management and Material sourcing in alignment with ESG standards/regulations

DELETED TOPICS (2)Powering Progress Together(Partnership)–

The emphasis was on customer relationship, and all topics are important forcustomer relationship. Hence, this topic has been excluded to avoid the duplication

Risk Management–

Risk management is a consolidated practice at Marelli. ESG/Sustainability risks aremeasured through our Enterprise Risk Management process–

Waste Management

Alignment with standards (SASB). Improve operational efficiency by increasing theamount of waste that is recycled–

Competitive Behavior

Alignment with standards (SASB). Leading producers of any specific auto part may
wield substantial market power in that segment, creating antitrust concerns. If
involvement in such activities is discovered, the imposed penalties and reputational
damage may have an acute impact on a company’s valuation and balance sheet–

Material Sourcing

Alignment with standards (SASB). Limit the use of critical materials, secure theirsourcing, and develop alternatives to protect from supply disruptions and volatile
input prices

INCLUDED TOPICS (3)marelli.com

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Table of GRI standards
GRI Standard

Disclosure

Section / Paragraph

GRI 2: GENERAL DISCLOSURES 2021
The organization and its reporting practices
Disclosure 2-1

Organizational details

Section: Company Overview

Disclosure 2-2

Entities included in
the organization’s sustainability
reporting

Section: About this report

Disclosure 2-3

Reporting period, frequency andcontact point

Section: About this report

Disclosure 2-4 1

Restatements of information

Section: About this report

Disclosure 2-5 2External assurance

n.a.

Disclosure 2-6

Activities, value chain and otherbusiness relationships

Sections: Company Overview, About Marelli

Disclosure 2-7 3

Employees

Sections: Company Overview, About Marelli, Employee engagement

Activities and workers

Unit of measurement

Scope

2020

2021

2022

Total number of employees
number (head count)(directly employed by Marelli)Group

58,07754,05850,368– of which women

number (head count)Group

14,522

15,702

14,926– of which women

%

Group

25.00%

29.05%

29.63%– of which men

number (head count)Group37,83738,35635,441– of which men

%

Group

65.15%

70.95%

70.36%– of which undefined ‘other’ 4

number (head count)companies/countries for which
gender information is not available

5,718

0

1

– of which undefined ‘other’ 4%

companies/countries for which
gender information is not available

9.85%

0.00%

0.00%

Number of permanent
employees

number (head count)Group

55,75551,832

48,355– of which to women

number (head count)Group

13,73814,90814,155– of which men

number (head count)Group36,37636,92434,199– of which undefined ‘other’ 4

number (head count)companies/countries for which
gender information is not available

5,641

0

1

– of which EMEA

number (head count)companies of the region

20,993

20,29918,120– of which APAC

number (head count)companies of the region

16,943

13,946

12,643
12,937– of which NAM

number (head count)companies of the region

13,17912,936– of which LATAM

number (head count)companies of the region

4,640

4,651

4,655

Number of temporary
employees

number (head count)

Group

2,322

2,226

2,013

– of which to women

number (head count)

Group

784

794

771

– of which men

number (head count)

Group

1,461

1,432

1,242

– of which undefined ‘other’ 4

number (head count)companies/countries for which
gender information is not available

77

0

0

– of which EMEA

number (head count)companies of the region

753

804

729

– of which APAC

number (head count)companies of the region

1,232

669

606

– of which NAM

number (head count)companies of the region

80

463

378

– of which LATAM

number (head count)companies of the region

257

290

300

Number of non-guaranteed
hours employees

number (head count)

Group

n.a.

n.a.

n.a.

Number of full-time
employees

number (head count)Group

57,60853,621

49,982– of which to women

number (head count)Group14,181

15,363

14,628– of which men

number (head count)Group

37,71838,25835,353– of which undefined ‘other’ 4

number (head count)companies/countries for which
gender information is not available

5,709

0

1

n.a. = Data not available
1

The 2021 environmental data have been restated according to the changes in the boundary consisting in the addition of 15 productive sites and theremoval of 3. The 2021 data for training hours in human rights has been restated as the internal training identification has been changed.

2

No external assurance was performed for this report.

3

Internal head count does not include employees on long leave.

4

Employees working in Mexico and the United States during 2020 for whom gender information is unavailable.

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GRI Standard

Disclosure

Section / Paragraph

Unit of measurement

Scope

2020

2021

2022

Number of part-time
employees

number (head count)

Group

469

437

386

– of which to women

number (head count)

Group

341

339

298

– of which men

number (head count)

Group

119

98

88

– of which undefined ‘other’ 5

number (head count)companies/countries for which
gender information is not available

9

0

0

Disclosure 2-8 6Workers who are not employees

n.a.

Unit of measurement

Scope

2020

2021

2022

Total number of workers who number (head count)are not employees andwhose work is controlled by
the organization 7

Group

5,512

4,195

4,855

Disclosure 2-9Governance structure andcomposition

Section: GovernanceParagraph: Board and committees

Disclosure 2-10

Nomination and selection of thehighest governance body

Section: GovernanceParagraph: Board and committees

Disclosure 2-11

Chair of the highest governancebody

Section: GovernanceParagraph: Board and committees

Disclosure 2-12

Role of the highest governancebody in overseeing themanagement of impacts

Section: GovernanceParagraph: Sustainability governance structure

Disclosure 2-13

Delegation of responsibility for
managing impacts

n.a.

Disclosure 2-14

Role of the highest governancebody in sustainability reporting

Section: GovernanceParagraph: Sustainability governance structure

Disclosure 2-15

Conflicts of interest

Section: ComplianceParagraph: Code of conduct and whistleblowing process

Disclosure 2-16

Communication of criticalconcerns

Section: Risk management

Disclosure 2-17 8

Collective knowledge of thehighest governance bodyn.a.

Disclosure 2-18 9

Evaluation of the performance ofthe highest governance bodyn.a.

Disclosure 2-19 10

Remuneration policies

n.a.

Disclosure 2-20 11

Process to determine
remunerationn.a.

Disclosure 2-21 12

Annual compensation ration.a.

Strategy, policies and practices
Disclosure 2-22

Statement on sustainable
development strategy

Section: Opening letter from CEO

Disclosure 2-23

Policy commitments

Section: ComplianceParagraph: Code of conduct and whistleblowing process

Disclosure 2-24

Embedding policy commitments

Section: ComplianceParagraph: Code of conduct and whistleblowing process

n.a. = Data not available
5

Employees working in Mexico and the United States during 2020 for whom gender information is unavailable.

6

Agency workers and Contractors.

7

Increasing variance in 2022 compared to 2021 is due to the recovery of production activity after the Covid-19 pandemic, with the need of adaptation
to market fluctuations.

8

Information unavailable related to measures taken to advance the collective knowledge, skills, and experience of the Board on sustainable
development.

9

The Board does not conduct a formal and rigorous annual evaluation of its effectiveness.

10 i.	For the highest governance body fixed and variable pay is determined, approved and measured by the Board of Directors, while for executives isdetermined and approved by the NGHCC.
ii.	Sign-on bonuses or recruitment incentive payments are agreed by contract.
iii.	Termination payments are paid based on individual contracts.
iv.	Marelli does not have policy on clawbacks.
v.	Retirement benefits are based on individual contracts or local legal requirements.
11 i.	The process is overseeing by independent highest governance body members and an independent remuneration committee.
ii.	Remunerations are approved during a committee meeting.
iii.	External independent third parties are involved in determining remuneration.
12 Information unavailable. Marelli is refining the data collection process in preparation for disclosure of this indicator in the next edition of the report.

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GRI Standard

Disclosure

Section / Paragraph

Disclosure 2-25

Processes to remediate negative
impacts

Section: Risk Management

Disclosure 2-26

Mechanisms for seeking advice
and raising concerns

Section: ComplianceParagraph: Code of conduct and whistleblowing process

Disclosure 2-27 13

Compliance with laws andregulations

Section: Environmental management

Disclosure 2-28

Membership associations

Section: Stakeholder Engagement
Paragraph: Key membership associations

Disclosure 2-29

Approach to stakeholder
engagement

Section: Stakeholder Engagement

Disclosure 2-30

Collective bargaining agreements Section: Labor Relations
Paragraph: Collective bargaining agreements

Stakeholder engagement

Unit of measurement
percentage of total employees %covered by collective
bargaining agreements 14

Scope

2020

2021

2022

Group

69.8%

77.4%

78.0%

GRI 3: MATERIAL TOPICS 2021
Disclosure 3-1

Process to determine material
topicsSection: Materiality assessment
Paragraph: Our materiality process conducted in 2022

Disclosure 3-2

List of material topics

Section: Materiality assessment
Paragraph: Our strategy and material topics

Material topics
GRI Standard

Disclosure

Section / Paragraph

GOVERNANCE & COMPLIANCE
Material topics 2021
Disclosure 3-3

Management of material topics

Sections:Governance,ComplianceManagement of material topics

Section: Risk Management
Case study: Competitive behavior: AI to improve risk management

COMPETITIVE BEHAVIOR
Material topics 2021
Disclosure 3-3

SUSTAINABILITY IN SUPPLY CHAIN
Material topics 2021
Disclosure 3-3

Management of material topics

Section: Sustainability in supply chain

GRI 204: PROCUREMENT PRACTICES 2016
Disclosure 204-1 15

Proportion of spending on local
suppliers

Section: Sustainability in supply chain
Paragraph: Engaging and assessing our suppliers

Procurement budget spent on suppliers of the following
locations (please insert only direct procurement –service excluded)

Unit of measurement

2020

2021

ASEAN

JPY per year

32,091China

JPY per year

135,254

India

JPY per year

10,867

Japan and Korea

JPY per year

105,761

EuropeJPY per year

215,500

210,501

231,496

North America

JPY per year

137,572

104,790

123,437

South America

JPY per year

25,123

26,331

34,570153,1502022

123,028
51,048MATERIAL SOURCINGGRI 3:
Material topics 2021
Disclosure 3-3

Management of material topics

Section: Environmental Management
Paragraph: Circular economy
Section: Innovating for sustainability
Paragraph: Material sourcing consideration under Marelli’s design mindset

13 No significant environmental instances were identified during 2022. Marelli defines significant instances as instances that generates an impact greaterthan JPY 443 million (EUR 3 million) from a Free cash flow (FCF) perspective or JPY 590 million (EUR 4 million) in terms of EBIT.
14 Information based on a survey that covered 96.3% of Marelli’s global headcount in 2020, 96.7% in 2021 and 99.2% in 2022.
15 Only suppliers from direct materials are scoped.

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GRI Standard

Disclosure

Section / Paragraph

GRI 308: SUPPLIER ENVIRONMENTAL ASSESSMENT 2016
Disclosure 308-1 16

New suppliers that were screened Section: Sustainability in supply chain
using environmental criteria
Paragraph: Non-compliance procedure
Unit of measurement

2022

Percentage of new suppliers that were screened using
environmental criteria 17

%

100%

Disclosure 308-2 16

Section: Sustainability in supply chain
Paragraph: Non-compliance procedure

Negative social impacts in the
supply chain and actions taken

Unit of measurement

2022

Suppliers assessed for environmental impacts 18

number/year

147

Suppliers identified as having significant actual and potential
negative environmental impacts 18

number/year32

Suppliers identified as having significant actual and potential
negative environmental impacts with which improvements wereagreed upon as a result of assessment 18

number/year

5

Percentage of suppliers identified as having significant actual andpotential negative environmental impacts with which
improvements were agreed upon as a result of assessment 18%

Suppliers identified as having significant actual and potential
negative environmental impacts with which relationships were
terminated as a result of assessment 18

number/year

15.6%

0

Percentage of suppliers identified as having significant actual and %potential negative environmental impacts with which relationships
were terminated as a result of assessment 18

0%

GRI 414: SUPPLIER SOCIAL ASSESSMENT 2016
Disclosure 414-1 16

New suppliers that were screened Section: Sustainability in supply chain
using social criteria
Paragraph: Non-compliance procedure
Unit of measurement

2022

Percentage of new suppliers that were screened using social
criteria. 18

%

100%

Disclosure 414-2 16

Section: Sustainability in supply chain
Paragraph: Non-compliance procedure

Negative social impacts in the
supply chain and actions taken

Unit of measurement

2022

Suppliers assessed for social impacts 18

number/year

147

Suppliers identified as having significant actual and potential
negative social impacts 18

number/year20

Suppliers identified as having significant actual and potential
negative social impacts with which improvements were agreed
upon as a result of assessment 18

number/year

6

Percentage of suppliers identified as having significant actual andpotential negative social impacts with which improvements wereagreed upon as a result of assessment 18%

Suppliers identified as having significant actual and potential
negative social impacts with which relationships were terminatedas a result of assessment 18

number/year

Percentage of suppliers densified as having significant actual andpotential negative social impacts with which relationships were
terminated as a result of assessment 18%

non-GRI

Section: Sustainability in supply chain
Paragraph: Engaging and assessing our suppliers

Sustainable Procurement

30%

0

0%

16 Data from worldwide suppliers for direct materials.
17 New process started in 2022.
18 Data related to the new process started in 2022.

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Disclosure

Section / Paragraph
Unit of measurement

2022

Percentage of buyers across all locations who have received
training on sustainable procurement

%

100%

Percentage of targeted suppliers that have gone through a CSR
assessment (e.g. questionnaire)%

35.37%

Percentage of targeted suppliers that have gone through a CSR
on-site audit 19

%

100%

Percentage of targeted suppliers that have accepted thesustainable procurement charter/supplier code of conduct%

87%

Percentage of targeted suppliers with contracts that include
clauses on environmental, labor, and human rights requirements%

87%

Percentage or number of audited/assessed suppliers engaged incorrective actions or capacity building 20% (or number)100%

GRI 301: MATERIALS 2016
Disclosure 301-1

Materials used by weight

Section: Environmental Management
Paragraph: Circular economy design

Unit of measurement

Scope

2022

Total materials used 21

mt/yearGroup

245,024– of which resins

mt/yearGroup

120,000– of which steel 22

mt/yearGroup

105,000– of which aluminum

mt/yearGroup

20,024Disclosure 301-2

Recycled input materials used

Section: Environmental Management
Paragraph: Circular economy design

Unit of measurement

Scope

2022

Total recycled input
materials 23

mt/yearGroup

57,506– of which resins

mt/year

Group

2,000

– of which steel

mt/yearGroup

37,500– of which aluminum

mt/yearGroup

18,006– Recycled input materials
ratio

%

Group

23.5

Management of material topics

Section: Environmental Management
Paragraph: Circular economy design
Section: Innovating for sustainability, Paragraph:
Material sourcing consideration under Marelli’s design mindset

Management of material topics

Section: Environmental Management
Paragraph: Waste management

CIRCULAR ECONOMY DESIGNGRI 3:
Material topics 2021
Disclosure 3-3
WASTE MANAGEMENTGRI 3:
Material topics 2021
Disclosure 3-3

19 All 5 planned audits have been executed.
20 Data related only to audited suppliers.
21 Information unavailable for years 2020 and 2021.
22 Data refers to stainless steel and carbon steel.
23 2022 data is estimated from the quantity of recycled input materials based on the information provided by suppliers.

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GRI Standard

Disclosure

Section / Paragraph

Disclosure 306-1

Waste generation and significant
waste-related impacts

Section: Environmental Management
Paragraph: Waste management

Disclosure 306-2

Management of significant waste- Section: Environmental Management
related impacts
Paragraph: Waste management

Disclosure 306-5

Waste directed to disposal

GRI 306: WASTE 2020

Section: Environmental Management
Paragraph: Waste management

Unit of measurement

Scope

2021

2022

Total hazardous andnon-hazardous waste
directed to disposal 24

mt/yearGroup

13,263.640

13,268.816– of which sent to incineration(with energy recovery)

mt/yearGroup

5,959.396

6,305.299– of which sent to incineration(without energy recovery)

mt/yearGroup

1,408.486

1,475.399– Landfilling

mt/yearGroup

2,771.479

2,070.717– Other disposal options

mt/yearGroup

3,124.279

3,417.401

Total hazardous waste

mt/yearGroup

4,477.677

4,533.719– of which sent to incineration(with energy recovery)

mt/yearGroup2,118.880

1,883.328– of which sent to incineration(without energy recovery)

mt/yearGroup

796.764656.270– Landfilling

mt/yearGroup

24.68822.408– Other disposal options

mt/yearGroup

1,537.346

1,971.713

Total non hazardous waste

mt/yearGroup

8,785.963

8,735.097– of which sent to incineration(with energy recovery)

mt/yearGroup

3,840.516

4,421.971– of which sent to incineration(without energy recovery)

mt/yearGroup

611.722819.129

Landfilling

mt/yearGroup2,746.791

2,048.309

Other disposal options

mt/yearGroup

1,586.934

1,445.688

Disclosure 306-4

Waste diverted from disposal

Section: Environmental Management
Paragraph: Waste management

Unit of measurement

Scope

2021

2022

Total hazardous andnon-hazardous waste
diverted from disposal

mt/yearGroup

74,561.287

72,228.525– Of which sent to preparation
for reuse

mt/year

Group

0

0

– Of which sent to recycling

mt/yearGroup

74,561.287

72,228.525– of which sent to otherrecovery operations

mt/year

Group

0

0

Total hazardous waste

mt/yearGroup

1,736.079

1,961.150– Of which sent to preparation
for reuse

mt/year

Group

0

0

– Of which sent to recycling

mt/yearGroup

1,736.079

1,961.150– of which sent to otherrecovery operations

mt/year

Group

0

0

Total non hazardous waste

mt/yearGroup

72,825.208

70,267.375– Of which sent to preparation
for reuse

mt/year

Group

0

0

– Of which sent to recycling

mt/yearGroup

72,825.208

70,267.375– of which sent to otherrecovery operations

mt/year

Group

0

0

CLIMATE CHANGE ACTION & ENERGY MANAGEMENTGRI 3:
Material topics 2021
Disclosure 3-3

Management of material topics

Section: Climate Change Risks and Opportunities Management
Section: Climate change action & energy management

24 All waste data refers to waste generated by ordinary activities. 2021 data have been restated according to the 2022 perimeter. All hazardous andnon-hazardous waste has been directed to off-site disposal.

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Section / Paragraph

Energy consumption within theorganization

Section: Climate change action & energy management

GRI 302: ENERGY 2016
Disclosure 302-1 Energy
consumption within theorganization

Unit of measurement

Scope

2021

2022

Total indirect energy
consumption 25

GJ/YearGroup

3,882,135.253

3,840,991.455– of which electricity
consumption from
non-renewable sources

GJ/YearGroup

3,300,282.437

2,796,422.643– of which purchased
electricity from certified
renewable sources

GJ/YearGroup529,334.851

1,003,562.571– of which heat fromnon‑renewable sources

GJ/YearGroup

44,922.760

32,229.804– of which heat fromrenewable sources

GJ/YearGroup

4,997.360

3,684.000– of which steam from
non-renewable sources

GJ/Year

Group

0

0

– of which cooling from
non-renewable sources

GJ/YearGroup

260.900

253.900– of which cooling fromrenewable sources

GJ/Year

Group

0

0

– of which compressed air
GJ/Yearfrom non-renewable sourcesGroup

2,336.945

4,838.538– of which compressed air
from renewable sources

Group

0

0

GJ/Year
Unit of measurement

Scope

2021

2022

Total direct energy
consumption 25

GJ/YearGroup

1,050,211.629

996,947.363– of which natural gas

GJ/YearGroup

880,451.781

804,118.021– of which gasoline

GJ/YearGroup

1,045.250

1,077.700– of which diesel

GJ/YearGroup

3,136.124

2,960.518– of which LPG

GJ/YearGroup

143,605.411

165,193.668– of which HSC and LSW oil

GJ/YearGroup

1,090.280

1,101.810– of which A-type heavy oil

GJ/YearGroup

16,109.996

17,459.686– of which renewable fuels

GJ/Year

Group

0

0

– of which self produced
renewable electricity

GJ/YearGroup

4,772.787

5,035.960

Total energy consumption 25

GJ/YearGroup

4,932,346.882

4,837,938.819

Disclosure 302-2

Energy Intensity

Section: Climate change action & energy management

Unit of measurement

Scope

2021

2022

Energy intensity

GJ/worked hours

Group

0.063

0.062

non-GRI

Energy management systems

Section: Climate Change Risks and Opportunities Management
Section: Climate change action & energy management

Number of sites with acertified ISO 50001 energy
management system

Unit of measurement

Scope

2021

2022

Number of sites

Group

27

27

25 2021: data have been restated according to the 2022 perimeter.

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Section / Paragraph

Direct Scope 1 GHG emission

Section: Climate change action & energy management

Unit of measurement

Scope

2021
(restated)

2022

Scope 1 GHG emissions 26

mtCO2e/yearGroup

60,090.970

57,265.460

Disclosure 305-2

Indirect Scope 2 GHG emission

Section: Climate change action & energy management

GRI 305: EMISSIONS 2016
Disclosure 305-1

Unit of measurement

Scope

2021

2022

Scope 2 GHG emissions(market-based) 26

mtCO2e/yearGroup395,031.292

372,823.708

Scope 2 GHG emissions(local-based) 27

mtCO2e/yearGroup399,215.390

408,353.936

Disclosure 305-3 28

Other indirect GHG emissions(Scope 3)

Section: Climate change action & energy management

Unit of measurement

Scope

2021

2022

mtCO2e/year

Group

n.a.

2,039,598

Scope 3 – category 1
mtCO2e/year
Purchased goods and services

Group

n.a.

1,432,965

Scope 3 – category 2
Capital goods

mtCO2e/year

Group

n.a.

113,265

Scope 3 – category 3
Fuel- and energy-related
activities (not included in
Scope 1 or Scope 2)

mtCO2e/year

Group

n.a.

27,200

Scope 3 – category 4
Upstream transportation anddistribution

mtCO2e/year

Group

n.a.

450,133

Scope 3 – category 5
mtCO2e/year
Waste generated in operations

Group

n.a.

4,560

Scope 3 – category 6
Business travel

mtCO2e/year

Group

n.a.

11,475Disclosure 305-4

GHG emissions intensity

Section: Climate change action & energy management

Unit of measurement

Scope

2021

2022

Scope 1 and Scope 2(market-based) GHG
emissions intensity ratio 26

mtCO2e/worked hourGroup0.00580.0055Disclosure 305-5

Reduction of GHG emissions

Section: Climate change action & energy management

Unit of measurement

Scope

2022

Scope 1 and 2 emissions
reduction 29

mtCO2e/yearGroup-25,033.094– of which for change inrenewable energy
consumption

mtCO2e/yearGroup-33,938.466– of which for other emission
reduction activity

mtCO2e/yearGroup-2,712.741– of which for change in output mtCO2e/yearGroup

11,618.112

Scope 3 GHG emissions

TOXIC EMISSIONSGRI 3:
Material topics 2021
Disclosure 3-3

Management of material topics

Section: Environmental management
Paragraph: EHS management and frameworkn.a. = Data not available
26 2021: data have been restated according to the 2022 perimeter.
27 2021: data have been restated according to 2022 perimeter. 2022: Scope 2 location-based emissions increased due to higher workload and location
based emissions factors.
28 Scope 3 emissions calculations has been performed according to the spend-based method by GHG Protocol. Data provided is related to material
emissions for Marelli.
29 Reduction calculated from 2021 baseline (restated data).

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GRI Standard

Disclosure

Section / Paragraph

Other air emissions

Section: Climate change action & energy management

GRI 305: EMISSIONS 2016
Disclosure 305-6

Unit of measurement

Scope

2021

2022

Total other significant air
emissions 30

mt/yearGroup

135.195

128.401NOx

mt/yearGroup

125.539118.095

SOx

mt/year

Group

9.657

10.307

Management of material topics

Section: Water

WATER
GRI 3:
Material topics 2021
Disclosure 3-3

GRI 303: WATER AND EFFLUENTS 2018
Disclosure 303-3

Water withdrawal

Section: Water
Paragraph: Reducing water withdrawal

Unit of measurement

Scope

2021

2022

Total water withdrawal 30

ML /yearGroup2,464.199

2,221.245

Surface water withdrawn 31

ML/yearGroup

104.566

87.621– of which from water stressarea 32

ML/year

Group

0

0

percentage from water stress
area

%

Group

0

0

Groundwater withdrawn

ML/yearGroup

410.668

364.954– of which from water stressarea 33

ML/year

Group

2.150

1.160

percentage from water stress
area

%

Group

0.5%

0.3%

Seawater withdrawn

ML/year

Group

0

0

– of which from water stressarea

ML/year

Group

0

0

percentage from water stress
area

%

Group

0

0

Third party water(e.g. municipal water suppliers
and municipal wastewater
treatment plants, public or
private utilities)

ML/yearGroup

1,948.965

1,768.670– of which from water stressarea 34

ML/yearGroup

685.060

635.450

percentage from water stress
area

%

Group

35%

36%

Disclosure 303-4

Water discharge

Section: Water
Paragraph: Reducing water withdrawal

Unit of measurement

Scope

2021

2022

Total water discharged 30

ML /yearGroup1,501.865

1,340.927– to surface water

ML/yearGroup

99.36481.599– of which from water stressarea

ML/year

Group

1.039

0.504

percentage from water stress
area

%

Group

1%

0.6%

– to groundwater 35

ML/year

Group

0

0

– of which from water stressarea

ML/year

Group

0

0

percentage from water stress
area

%

Group

0

0

30 2021 data have been restated according to the 2022 perimeter.
31 Surface water data includes rain water.
32 Sites in Water stressed area have been determined using the Aqueduct tool (Water Resource Institute), sites classified as Extremely High (>80%) for
Baseline Water Stress have been considered in water stress area.
33 The water stress area identified is located in China.
34 The water stress areas identified are located in China, India, Italy, Mexico, Morocco, Romania, Thailand.
35 Information unavailable for groundwater discharges at the moment of the reporting process.

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GRI Standard

Disclosure

Section / Paragraph– to seawater 36

ML/year

Group

0

0

– of which from water stressarea

ML/year

Group

0

0

percentage from water stress
area

%

Group

0

0

– to third party water (e.g.
municipal water suppliers
and municipal wastewater
treatment plants, public or
private utilities)

ML/yearGroup

1,402.501

1,259.327– of which from water stressarea

ML/yearGroup

392.539335.396

percentage from water stress
area

%

Group

28%

27%

Disclosure 303-5

Water consumption

Section: Water
Paragraph: Reducing water withdrawal

Unit of measurement

Scope

2021

2022

Total Water consumption 30

ML/yearGroup

962.334

880.319– of which from water stressarea

ML/yearGroup

293.632300.710

non-GRI

Recycled water index

Section: Water
Paragraph: Reducing water withdrawal

Unit of measurement

Scope

2021

2022

Recycled water index

%

Group

92.5%

92.3%

Water recycled and reused 38

ML/yearGroup

30,428.830

26,524.150

non-GRI

Environmental management
Section: Environmental management
systems and Environmental audits Paragraph: EHS management and framework

37

Scope

2021

2022

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

Unit of measurement

Group

105

107

Number of sites with a certified %ISO 14001 environmental
management system 39

Group

93

95

Third party audits 40

number

Group

n.a.

100

Internal audits 40

number

Group

n.a.

293

Management of material topics

Section: Environmental management
Paragraph: EHS management and framework

Management of material topics

Section: Employee Engagement

BIODIVERSITYGRI 3:
Material topics 2021
Disclosure 3-3
EMPLOYEE ENGAGEMENTGRI 3:
Material topics 2021
Disclosure 3-3

n.a. = Data not available
36 Information unavailable for sea water discharges at the moment of the reporting process.
37 Recycled water index is calculated by dividing the volume of recycled/reused water by the total amount of water withdrawn and recycled/reused water.
38 Recycled water is defined as water that has been utilized more than once in the same production cycle or in another cycle without receiving any kind oftreatment. Reused treated effluents are referred as reused water.
39 Percentage calculated considering the total number of productive sites (113).
40 Information on number of third-party and internal audit are collected with Marelli corporate data collection tool starting from 2022.

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GRI Standard

Disclosure

Section / ParagraphNew employee hires andemployee turnover

Section: Employee Engagement

GRI 401: EMPLOYMENT 2016
Disclosure 401-1

Unit of measurement

Scope

2020

2021

2022

New hires in reporting year
(permanent employees only)

number (head count)

Group

7,349

9,460

9,967

hiring rate (tot)

%

Group

13.18%

18.25%

20.61%– of which female

number (head count)

Group

2,019

3,464

3,867

hiring rate female

%

Group

14.70%

23.24%

27.32%– of which malenumber (head count)

Group

4,706

5,989

6,099

hiring rate male

%

Group

12.94%

16.22%

17.83%– of which undefined ‘other’

number (head count)companies/countries for which
gender information is not available

624

7

1

hiring rate ‘other’%companies/countries for which
gender information is not available

11.06%

n.a.

100.00%– of which < 30 years oldnumber (head count)

Group

3,011

4,868

5,566

hiring rate <30

%

Group

26.79%

40.97%

52.90%– of which 30 <= x <= 50

number (head count)

Group

3,662

4,069

3,969

hiring rate 30<=x<=50

%

Group

10.27%

12.62%

13.10%– of which > 50 years oldnumber (head count)

Group

676

523

432

hiring rate >50

%

Group

6.05%

5.27%

4.53%

New hires of which EMEA

number (head count)

EMEA

832

1,120

1,095

hiring rate EMEA

%

EMEA

3.83%

5.31%

5.81%

New hires of which APAC

number (head count)

APAC

2,564

1,659

1,610

hiring rate APAC

%

APAC

14.11%

11.35%

12.15%New hires of which NAM

number (head count)

NAM

3,657

6,083

6,739

hiring rate NAM%

NAM

27.58%

45.40%

50.61%New hires of which LATAM

number (head count)

LATAM

296

598

523

hiring rate LATAM

%

LATAM

6.04%

12.10%

10.55%

Leavers in reporting year
(Permanent employees only)

number (head count)Group

10,096

13,802

13,687

leavers rate (tot)

%

Group

17.38%

25.53%

27.17%– of which voluntary leavers

number (head count)

Group

2,573

5,910

7,353

leavers rate voluntary

%

Group

4.61%

11.40%

15.21%– of which female

number (head count)

Group

2,665

4,200

4,535

leavers rate female

%

Group

19.40%

28.17%

32.04%– of which malenumber (head count)

Group

6,393

8,875

9,152

leaver rate male

%

Group

17.57%

24.04%

26.76%– of which undefined ‘other’

number (head count)companies/countries for which
gender information is not available

1,038

727

0

leaver rate ‘other’%companies/countries for which
gender information is not available

18.40%

n.a.

0%– of which < 30 years oldnumber (head count)

Group

2,845

4,654

5,515

leavers rate <30

%

Group

25.31%

39.17%

52.42%– of which 30 <= x <= 50

number (head count)

Group

5,568

7,329

1,824

leavers rate 30<=x<=50

%

Group

15.61%

22.73%

6.02%– of which > 50 years oldnumber (head count)

Group

1,683

1,819

6,348

leavers rate >50

%

Group

15.07%

18.32%

66.55%

Leavers of which EMEA

number (head count)

EMEA

1,879

2,060

3,218

leaver rate EMEA

%

EMEA

8.64%

9.76%

17.07%

Leavers of which APAC

number (head count)

APAC

4,182

4,785

2,822

leaver rate APAC

%

APAC

23.01%

32.74%

21.30%

n.a. = Data not available

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GRI Standard

Disclosure

Section / Paragraph

Unit of measurement

Scope

2020

2021

2022

Leavers of which NAM

number (head count)

NAM

3,607

6,330

7,049

leaver rate NAM%

NAM

27.20%

47.24%

52.94%

Leavers of which LATAM

number (head count)

LATAM

428

627

598

leaver rate LATAM

%

LATAM

8.74%

12.69%

12.07%

Disclosure 401-2

Benefits provided to full-time
employees that are not provided
to temporary or part time
employees

Section: Employee well-being

Disclosure 401-3

Parental leave

Section: Employee well-being

Unit of measurement

Scope

2020

2021

2022

Total number of employees
number (head count)that were entitled to parental
leave

Group

13,56639,05936,619– of which female

number (head count)

Group

4,020

11,692

11,217– of which malenumber (head count)

Group

9,546

27,36725,402– of which undefined ‘other’

number (head count)companies/countries for which
gender information is notavailable

000

Total number of employeesthat took parental leave

number (head count)

Group

550

1,870

2,919

– of which female

number (head count)

Group

354

882

1,288

– of which malenumber (head count)

Group

196

988

1,631

– of which undefined ‘other’

number (head count)companies/countries for which
gender information is notavailable

000

Total number of employeesthat returned to work in thereporting period afterparental leave ended

number (head count)

Group

281

1,547

2,622

– of which female

number (head count)

Group

97

578

1,009

– of which malenumber (head count)

Group

184

969

1,613

– of which undefined ‘other’

number (head count)companies/countries for which
gender information is notavailable

0

0

0

235

902

2,142

Total number of employees
number (head count)that returned to work afterparental leave ended thatwere still employed 12 months
after their return to workGroup

– of which female

number (head count)

Group

67

376

767

– of which malenumber (head count)

Group

168

526

1,375

– of which undefined ‘other’

number (head count)companies/countries for which
gender information is notavailable

000Return to work rate

%

Group

51.09%

82.73%

89.83%

Retention rate

%

Group

n.a.

321.00%138.46%

n.a. = Data not available

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Disclosure

Section / Paragraph

GRI 404: TRAINING AND EDUCATION 2016
Disclosure 404-1 41

Average hours of training peryear per employee

Section: Employee Training and Development

Unit of measurement

Scope

2020

2021

2022

Total hours of training
provided to employees

hours/yearGroup429,122444,199.14

429,704.34– of which voluntary training(i.e. not required by laws)

hours/yearGroup

268,113315,258

291,194– of which diversity,
discrimination andharassment training

hours/year

Group

n.a.

435

18,429– of which Health and Safety
training

hours/yearGroup

101,490

83,11481,702– of which Human Rights
training

hours/year

Group

2,779

3,305

4,814

– of which Business Ethics andCompliance trainings

hours/year

Group

n.a.

11,791

1,440– of which Cyber Security andData Privacy training

hours/year

Group

n.a.

21,284

19,715– of which training on
hours/year
Manufacturing Management
System (Monozukuri andWorld Class Manufacturing)Group

56,741

9,013

12,411

Hours of training provided per hours/employee
employee

Group

7.39

8.22

8.53

Total hours of training
provided to female
employees

hours/yearGroup

109,924

88,10996,661

Hours of training provided
per female employee

hours/employee

Group

7.57

5.61

6.48

Total hours of training
provided to male employees

hours/yearGroup311,619

332,003

333,025

Hours of training provided
per male employee

hours/employee

Group

8.24

8.66

9.40

Total hours of training
provided to ‘other’
employees 42

hours/yearcompanies/countries forwhich gender information
is not available

7,579

24,086

18.75

Hours of training provided
per ‘other’ employee

hours/employee

companies/countries for which
gender information is not available

1.33

n.a.

18.75

Total hours of training
provided to Managers 43

hours/yearGroup

46,05857,824

41,193

Hours of training provided
per Manager

hours/employee

Group

5.67

12.80

9.80

Total hours of training
provided to salaried
employees 44

hours/yearGroup

188,851

216,451

199,052

Hours of training provided
per salaried employee

hours/employee

Group

13.41

14.69

15.06

Total hours of training
provided to hourly
employees 45

hours/yearGroup

194,213

169,924

189,460

Hours of training provided per hours/employee
hourly employee

Group

5.41

4.88

5.75

Training expenditures

Group

1,9 Oku

4,6 Oku

4,3 OkuJPY

n.a. = Data not available
41 All the data provided exclude Korea. 2021 Human rights training data have been restated due to mistaken calculation.
42 Due to the limitation of the training system it is not always possible to identify male and female, hence the registration is based on employee ID
number43 Data related to positions of supervisors and above.
44 Employees classified as “salaried” receive a fixed amount of pay regardless of how many hours they work each week. In Marelli, such category includes
all job titles with global grade “Salaried” and above.
45 Employees classified as “hourly” are paid for the actual amount of hours they work . In Marelli, hourly employees are typically in nature positions
related directly or indirectly to production within the following departments: Manufacturing, Quality, Logistics, and Maintenance.

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Disclosure

Section / Paragraph

Disclosure 404-2

Programs for upgrading
employee skills and transition
assistance programs

Section: Employee Training and Development

Disclosure 404-3

Percentage of employees
receiving regular performanceand career development reviews

Section: Employee Training and Development
Case study: performance evaluation process

Unit of measurement

Scope

2020

2021

2022

number (head count)Group

34,83634,18331,850Percentage of employees%
receiving regular performanceand career development
reviews

Group

60%

63%

63%

– of which Women

number (head count)Group

10,227

9,988

9,494

percentage of Women

%

Group

70%

64%

64%

– of which men

number (head count)Group

24,60924,19522,356

percentage of men

%

Group

65%

63%

63%

– of which Managers

number (head count)

Group

529

585

529

percentage of Managers

%

Group

7%

13%

13%

– of which salaried employees

number (head count)Group19,21917,83815,986

percentage of salaried
employees

%

Group

136%

121%

121%

– of which hourly employees

number (head count)Group

15,087

15,605

14,772

percentage of hourly
employees

%

Group

42%

45%

45%

non-GRI

Employee surveys

Section: Employee engagement
Case study: Great place to work survey

Unit of measurement

Scope

2020

2021

2022

n

Group

n.a.

87% of Salary
Workforce =Approximately
5,636

n.a.

Number of employees
receiving regularperformance and careerdevelopment reviews

Number of employees who
participated to an employee
survey during the year 46

OCCUPATIONAL HEALTH & SAFETY
GRI 3:
Material topics 2021
Disclosure 3-3

Management of material topics

Section: Occupational Health & Safety

GRI 403: OCCUPATIONAL HEALTH & SAFETY 2018
Disclosure 403-1

Occupational health and safety
management system

Section: Occupational Health & Safety

Disclosure 403-7

Prevention and mitigation ofoccupational health and safety
impacts directly linked bybusiness relationships

Section: Occupational Health & Safety

Disclosure 403-9

Work-related injuries

Section: Occupational Health & Safety

Unit of measurement

Scope

2021

2022

Number of injuries 47

number/year

Group

482

497

– of which number of fatal
injuries

number/year

Group

0

1

– of which high consequences
loss time injuries (LTI)

number/year

Group

25

18

– of which LTI

number/year

Group

55

66

– of which first aid (FA)number/year

Group

402

412

Number of commuting injuries number/year

Group

135

157

Worked hours

Group

91,596,090

90,019,475

Employees

number/year

n.a. = Data not available
46 Surveys are delivered every 2 years. Next survey is planned for July 2023 on the total headcount.
47 Occupational health and safety data has been collected for 27 non manufacturing sites (R&D centers, headquarters and offices) and
142 manufacturing sites.

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Disclosure

Section / Paragraph

Unit of measurement

Scope

2021

2022

Rate of fatalities as a result ofwork-related injury(Fatal injuries/Worked hours)
x 1,000,000

Group

0

0.011

Rate of high-consequencework-related injuries(excluding fatalities)(High consequences LTI/Worked
hours) x 1,000,000

Group

0.27

0.20

Rate of recordable workrelated injuries(Total LTI and high consequences Group
LTI+FA)/Worked hours x 1,000,000

5.26

5.52

Rate of total LTI (included highconsequences loss LTI)

(Total LTI including highGroup
consequence LTI and fatal injuries/
Worked hours x 1,000,000

0.87

0.94

Workers who are not employees
Unit of measurement

Scope

2021

2022

Number of injuries 48

number/year

Group

39

38

– of which number of fatal
injuries

number/year

Group

0

0

– of which high consequences
loss time injuries (LTI)

number/year

Group

9

2

– of which LTI

number/year

Group

5

2

– of which first aid (FA)number/year

Group

25

34

Worked hours

number/yearGroup

16,359,756

16,323,330

Unit of measurement

Scope

2021

2022

Rate of fatalities as a result ofwork-related injury(Fatal injuries/Worked hours)
x 1,000,000

Group

0

0

Rate of high-consequencework-related injuries(excluding fatalities)(High consequences LTI/Worked
hours) x 1,000,000

Group

0.55

0.12

Rate of recordable workrelated injuries(Total LTI and high consequences Group
LTI+FA)/Worked hours x 1,000,000

2.38

2.33

Rate of total LTI (included highconsequences loss LTI)

(Total LTI including highGroup
consequence LTI and fatal injuries/
Worked hours x 1,000,000

0.86

0.25

Disclosure 403-10

Work-related ill health

Section: Occupational Health & Safety

Unit of measurement

Scope

2021

2022

number/year

Group

6

5

n.a.

n.a.

Employees
Number of work-related illhealth 49

Workers who are not employees
Number of work- related illhealth 50

number/yearGroup

non-GRI

Occupational Health and Safety
management system

Section: Occupational Health & Safety

Unit of measurement

Scope

2021

2022

Group

46%

54%

Number of sites with a certified % productive sites covered by
ISO 45001 health and safety
certification
management system 51

n.a. = Data not available
48 The data has been collected for 27 non manufacturing sites (R&D centers, Headquarters and offices) and 142 manufacturing sites.
49 2022 data related to 5 work-related ill health of which 4 biomedical overload and vibration and 1 hearing loss.
50 Data not collected for workers who are not employees.
51 2021 data related to 66 sites certified over 142 productive sites. 2022 data related to 76 sites certified over 142 productive sites.

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Disclosure

Section / ParagraphManagement of material topics

Section: Diversity & Inclusion

DIVERSITY & INCLUSIONGRI 3:
Material topics 2021
Disclosure 3-3

GRI 405: DIVERSITY AND EQUAL OPPORTUNITY 2016
Disclosure 405-1

Diversity of governance bodies
and employees

Section: Diversity & Inclusion

Unit of measurement

Scope

2020

2021

2022

Total number of Managers 52

number (head count)

Group

8,124

4,518

4,203

– of which female

number (head count)

Group

1,219

670

657

– of which female

%

Group

15.00%

14.83%

15.63%– of which men

number (head count)

Group

6,656

3,848

3,546

– of which undefined ‘other’

number (head count)companies/countries for which
gender information is notavailable

249

0

0

– of which belonging tovulnerable groups and/or
minority group (e.g.
Employees with disabilities)

number (head count)

Group

0

17

14

– of which < 30 years oldnumber (head count)

Group

243

45

35

– of which 30 <= x <= 50

number (head count)

Group

5,265

2,698

2,586

– of which > 50 years oldnumber (head count)

Group

2,616

1,775

1,582

Total number of directors
and above

number (head count)

Group

598

650

571

– of which female

number (head count)

Group

47

70

72

– of which malenumber (head count)

Group

513

580

499

– of which undefined ‘other’

number (head count)

Group

38

0

0

Total number of salaried
employees

number (head count)Group

14,083

14,73913,220– of which female

number (head count)

Group

3,387

4,048

3,783

– of which men

number (head count)

Group

8,966

10,691

9,437– of which undefined ‘other’

number (head count)companies/countries for which
gender information is not available

1,730

0

0

– of which belonging tovulnerable groups and/or
minority group (e.g.
Employees with disabilities)

number (head count)

Group

0

91

68

– of which < 30 years oldnumber (head count)

Group

3,111

3,161

2,898

– of which 30 <= x <= 50

number (head count)

Group

8,750

9,243

8,268

– of which > 50 years oldnumber (head count)

Group

2,222

2,335

2,054

Total number of hourly
employees

number (head count)Group

35,87034,801

32,945– of which female

number (head count)

Group

9,916

10,984

10,486– of which men

number (head count)Group

22,21523,81722,458– of which undefined ‘other’

number (head count)companies/countries for which
gender information is not available

3,739

0

1

– of which belonging tovulnerable groups and/or
minority group (e.g.
Employees with disabilities)

number (head count)

Group

0

329

321

– of which < 30 years oldnumber (head count)

Group

7,886

8,676

7,588

– of which 30 <= x <= 50

number (head count)Group

21,656

20,307

19,455– of which > 50 years oldnumber (head count)

Group

6,328

5,818

5,902

52 Please note we updated previous years number to ensure correct comparisons, as we have had focus on top leadership with our Diversity & Inclusion
initiative it was important that we align the data. In previous years we put only top leadership in the manager section now we have added true manager
level and above.

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Overview

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Responsible
corporate citizen

Marelli people

About this report

Material topics continued
GRI Standard

Disclosure

Section / ParagraphManagement of material topics

Section: Labor Relations

LABOR RELATIONSGRI 3:
Material topics 2021
Disclosure 3-3
non-GRI

Section: Labor Relations
Paragraphs: Employee representatives, Labor unrest
Scope

2022

% of the total workforce across %all locations who are coveredby formally-elected employee
representatives 53

Unit of measurement

Group

61.5%

Total number of days/hours on n
strike, for significant episode 54Group

PRODUCT SAFETY & QUALITYGRI 3:
Material topics 2021
Disclosure 3-3

Management of material topics

Section: Product safety & quality

non-GRI

Improvement in productivity andawardsSection: Product safety & quality

Unit of measurement

Scope

2020

2021

2022

Percentage reduction of Cost
per Hour indicator comparedto the previous year 55

%

Group

-0.007

0.03

0.032

Award received (in relation to
Quality, excellence ofcraftmanship, Monozukuri,
innovation) 56

number/year

Group

15

13

30

GRI 416: CUSTOMER HEALTH AND SAFETY 2016
Disclosure 416-2

Incidents of non-complianceconcerning the health and safety
impacts of products and services

Section: Product safety & quality

Unit of measurement

Scope

2020

2021

2022

%

Group

0

0

0

Total number of incidents of%
non-compliance with voluntary
codes, concerning the healthand safety impacts of products
and services

Group

0

0

0

Total number of incidents of
non-compliance withregulations concerning thehealth and safety impacts ofproducts and services,
resulting in a fine or penalty

SOCIAL CONTRIBUTIONGRI 3:
Material topics 2021
Disclosure 3-3

Management of material topics

Sections: Social Contribution, Stakeholder engagement

RESPECT FOR HUMAN RIGHTSGRI 3:
Material topics 2021
Disclosure 3-3

Management of material topics

Section: Respect for Human Rights

Management of material topics

Section: Data responsibility

DATA RESPONSIBILITYGRI 3:
Material topics 2021
Disclosure 3-3

53 Survey conducted on 99.1% of Marelli’s global headcount. The percentage is calculated on the 49,900 employees mapped.
54 The overall levels of labor unrest and local labor actions were either zero or negligible.
55 Since 2019 Marelli monitors the cost per hour indicator and sets targets for improvement.
56 Customer quality awards.

73

Marelli Sustainability Report 2022

Overview

Advanced mobility
and our innovation

Sustainabilityof our operations

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corporate citizen

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About this report

Material topics continued
GRI Standard

Disclosure

Section / Paragraph

GRI 418: CUSTOMER PRIVACY 2016
Disclosure 418-1

Substantiated complaints
concerning breaches ofcustomer privacy and lossesof customer data
Unit of measurement

Section: Data responsibility

Scope

2020

2021

2022

Total number of
number/year
substantiated complaints
received concerning
breaches of customer privacy(automatically calculated)

Group

0

0

0

– of which complaints received number/year
from outside parties andsubstantiated by theorganization

Group

0

0

0

– of which complaints from
regulatory bodies

number/year

Group

0

0

0

– Number of identified leaks,
thefts, or losses of customer
data 57

number/year

Group

0

2

0

non-GRIManagement of material topics

Section: Data responsibility

Unit of measurement

Scope

2020

2021

2022

Number of external audit on
information security 58

number/year

Group/specific plants

5

12

5

Number of Information
Security certifications owned
by Marelli

number/year

Group

16

17

19

57 2021 incidents are related to: 1. personal data breach during a web portal configuration of the health service provider of Marelli Japan and,2. an operational error during a server migration that caused the loss of customer data.
58 The number of external audit in 2020 was limited by COVID. Most audits were managed remotely. No audit managed at Group level in 2020.
In 2021: Most audits managed remotely.

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Advanced mobility
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Overview

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About this report

About this report
Reporting period and scopeThis document is the fourth edition of
the Marelli Sustainability Report (‘thisreport’). This report covers the period
from January 1, 2022, to December 31,
2022 (the ‘reporting period’). It
captures Marelli’s sustainability
achievements in the reporting period.
It contains forward-looking
statements considered relevant and in
progress during the elaboration of the
document Q1/2023.
The reporting scope for social, humanresources, and occupational healthand safety data includes all Marelli

operations and consolidated
companies for a total of
142 manufacturing productive sites
and 27 non-manufacturing sites (e.g.
offices, headquarters, R&D centers).
The reporting perimeter forenvironmental data includes sites
where we have control, meaning
ownership (direct or indirect) of morethan 50% of the voting rights in a legal
entity or the power to appoint or electa majority of the directors of a legal
entity, or the power to direct the
management of a legal entity.

gcelebratin
Employees ds at Goianaarquality aw
azil
plant in Br

2022 Sustainability Perimeter

Human resources
Occupational health & safety
Environmental perimeter

142

27

142

27

Productive manufacturing sites
Non-manufacturing sites

113

Marelli has disclosed the information cited in the 2022 Sustainability Reportwith reference to the Universal GRI Standards 2021.

Data restatement

Units of measurement

Environmental data for 2021 has been
restated in accordance with theupdated perimeter. Changes in theboundary consisted of the addition of
14 productive sites and the removal ofthree sites due to the divestment andclosure of sites following the internal
procedure for data reporting
according to the GHG Protocol.

Unit

SymbolBillionBn

MillionM

The 2021 data for training hours inhuman rights was restated as theinternal training identification has
been changed. Training data wasfine‑tuned to be purely devoted tohuman rights.

75

GHG emissions
Metric tons of carbon
dioxide equivalenttCO2eVolumeCubic meterm3

Volume (liquid)
Liter
Megaliters

L
ML

WeightTonnes (1,000 kg)t

Marelli Sustainability Report 2022

Forward-looking
statements
This report contains forwardlooking statements considered
relevant and in progress during
the elaboration of the document
Q1/2023. Please be aware that
actual results may differ due tovarious factors. Publication Date:
May 2023.
For further information, contact us
at sustainability@marelli.com

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