ANNUAL
SUSTAINABILITYREPORT

2023 CONSOLIDATED DISCLOSURE
OF NON-FINANCIAL INFORMATION
IN ACCORDANCE WITH LEGISLATIVEDECREE No. 254/2016

Our thanks go out to all Brembo personnel who contributed to the preparationof the Disclosure of Non-Financial Information, and in particular to the membersof the CSR Task Force — the working group that each day dedicates itself passionately
to expanding and developing the many aspects of sustainability.

ANNUALSUSTAINABILITYREPORT 2023

2023 CONSOLIDATED DISCLOSURE
OF NON-FINANCIAL INFORMATION
IN ACCORDANCE WITH LEGISLATIVEDECREE No. 254/2016

INTRODUCTION

NUMBERSTELL A STORY
Increasingly complex numbers and calculation methods
narrate the history and progress of civilisation.
Today, those same numbers that measure performance and results
offer the opportunity to outline an ambitious strategy
and reach new worlds to explore.

123456789..

CONTENTS

1

2

3

4

5

4

Letter of the Chief Corporate Social Responsibility Officer

6

UN Global Compact Statement

9

Driven by our vision: "Turning Energy into Inspiration"

10

Sustainability Highlights

12

The Main Economic, Social and Environmental Challenges

15

The Group18

1.1

Group Profile and Main Applications

18

1.2

Digital Transformation Program: from Product Business to Solution Provider

20

1.3

Brembo’s History

24

1.4

Brembo’s Global Footprint

26

1.5

Target Markets and Brands

28

1.6

Stock Performance

33

1.7

Ethical and Sustainable Finance

34

1.8

The EU Taxonomy Regulation (No. 2020/852)

34

Sustainability

56

2.1

Sustainability for Brembo

56

2.2

The Governance of Sustainability

57

2.3

The History of CSR

61

2.4

Dialogue with Stakeholders

67

2.5

Materiality Analysis

75

2.6

Turning Sustainability into Action

83

2.7

The United Nations 2030 Agenda

86

Company Structure

92

3.1

Corporate Governance Model

92

3.2

Responsible Business Management System

109

3.3

Fiscal Responsibility

117

3.4

Internal Control And Risk Management System

119

People128

4.1

People within Brembo

128

4.2

Different Ways of Being Brembo People

134

4.3

People Development

138

4.4

Growth and Merit

140

4.5

Workers’ Health and Wellbeing

142

The Supply Chain

154

5.1

Ancillary Companies and Supplier Network

154

5.2

Responsible Supply Chain

156

Annual Sustainability Report 2023

Contents

6

7

8

Synergies and Innovation

162

6.1

Designing Innovation

162

6.2

Collaborations to Reduce the Environmental Impact

165

6.3

Product Innovation

168

6.4

Listening to Customers for Product Improvement

172

6.5

Creativity and Method: Ensuring Product Safety

178

6.6

Awards for Innovative Ideas

182

Environment

188

7.1

An Innovative and Responsible Business Model

188

7.2

The System for Effective Management of Environmental (ISO 14001) and Energy (ISO 50001) Impacts

190

7.3

Energy Consumption

191

7.4

Greenhouse Gas Emissions

195

7.5

Atmospheric Polluting Emissions

200

7.6

Management and Use of Water Resources

201

7.7

Waste Reduction

205

7.8

Protection of Biodiversity

207

Local Areas

210

8.1

Creating Opportunities for Local Areas

210

8.2

Community Involvement and Development

213

Appendix226

Appendix

226

Material topics, legislative areas and related GRI aspects

246

TCFD’s recommendations and Brembo disclosures

248

Methodological Note250

Reporting standards applied

250

Reporting scope

250

Reporting process

251

Reporting Principles

252

GRI Table of Contents

253

Table of contents of the Disclosure of Non-financial Information “in accordance”
with the GRI Standards for the Fiscal Year 2022

253

Independent Auditors' Assurance Report

260

Annual Sustainability Report 2023

5

LETTER OF THE CHIEF CORPORATE SOCIALRESPONSIBILITY OFFICER

Dear Stakeholders,Brembo’s CSR Department celebrated the 10th anniversary of its foundationin 2023 — both a milestone and an encouragement in our sustainability journey. Over the past ten years, we have made considerable progress and shaped
our vision of a sustainable future. As every year, you will find the achievements and results of this process described in detail in this Consolidated
Disclosure of Non-Financial Information.
2023 was a year of growth for Brembo, in spite of the global challenges
and ongoing transformation of the automotive sector. Within this scenario,
the Group's sustainability plan continued to steer our strategy, in keepingwith the UN 2030 Agenda. Our activities embrace all ESG — Environmental,
Social and Governance — aspects, taking account of their impacts on theGroup and the Group's impacts on people, communities and the environment, thanks to the double-materiality methodology.
Our People are at the heart of everything we do. In 2023, we continued
to invest in talent development, promoting an inclusive work environmentthat respects and supports each person’s uniqueness. We are determined
to continue to increase the wellbeing of our global team, which reached15,652 people at 32 production and business sites in 15 countries.
They are the ones who create the Brembo of the future every day. The innovation that our People express is directed not only towards new products,
but also towards ESG areas. We recognise this every year in the Brembo
Sustainability Awards, which in 2023 reached their fifth edition, with 57
projects submitted.
Within this context of commitment and innovation, one of the pillars of ourstrategy is ensuring the Group’s environmentally sustainable development.
In 2023, CO2 emissions per cast tonne decreased by 11.2% compared to2022, and CO2 emissions per unit of finished product also declined by 9.5%
on the previous year. The use of electricity from renewable sources reached
75% of the total and 100% in three countries. Our ambitious goal is to reach
Net Zero by 2040.

6Annual Sustainability Report 2023

Letter of the Chief Corporate Social Responsibility Officer

To increasingly involve also our supply chain in this process, in 2023 weorganised the Net Zero Supply Chain Workshop, an event that involved
around 300 key suppliers with the goal of speeding the process ofdecarbonisation of our supply chain.
In addition, based on the recommendations of the Task Force on Climaterelated Financial Disclosures, work continued on a project to reinforce theBrembo Climate Change Risk Assessment, a broad, thorough analysis of therisks that climate change poses to our business and how best to deal withthem.
In addition, in 2023 CDP once again recognised Brembo as a global leader
for its action on climate change and water resource management, assigning
it a score of A- in both categories.
Our social commitment also expanded. As our international programmes —among which I would like to mention the House of Smile in India — continued
to meet with success, in 2023 we launched the Child Friendly Space project tosupport people hit by the earthquake that struck Turkey and Syria in February.
In addition, Brembo was System Partner to Bergamo-Brescia Italian Capitalof Culture 2023, an initiative of extraordinary social, cultural and economic
importance for the area in which the Group has its roots.
This year's activities and results are a cause for pride to us, while also
encouraging us to keep doing more and better, with determination andpassion, to support the positive, responsible development of our Group.
For all of this, I extend my sincere thanks to my team and all Brembo
People, who together with us help spread and strengthen the culture ofsustainability in our Company.

CRISTINA BOMBASSEI
Chief CSR Officer

Annual Sustainability Report 2023

7

UN Global Compact Statement

UN GLOBAL COMPACT STATEMENT

Dear Stakeholder,I am pleased to confirm that in 2023 as well Brembo S.p.A. reaffirms its support to the 10 United Nations Global Compact Principles in the areas of Human
Rights, Labour, the Environment and Anti-corruption. In this annual report on
the achievements made, we disclose our ongoing commitments to integrating
the 10 Principles into our Company’s strategy, culture and daily activities, aswell as to contributing to the United Nations’ goals, in particular the Sustainable Development Goals.
DANIELE SCHILLACI
Chief Executive Officer, Brembo S.p.A.

BREMBO AND THE UN GLOBAL COMPACT

Since 2021, Brembo S.p.A. has beena participant in the United Nations
Global Compact, the world's largest
strategic corporate citizenship initiative that arose from the desire topromote a sustainable global economy, respectful of human and labour
rights, environmental protection andthe principles of anti-corruption.
Promoted by former UN Secretary
Kofi Annan, more than 24,000 companies from 167 countries have so far
joined the Global Compact, creatinga new model for global collaboration.
The UN Global Compact requires
companies to share, support and apply in their sphere of influence a setof fundamental principles on humanrights, labour standards, environmental protection and anti-corruption.
By participating in this initiative, Brembo S.p.A. has joined a universal network of companies with a long-term

strategic vision, oriented towards thepromotion of the culture of sustainability, innovation and reporting.
The Global Compact provides an opportunity to share strategies and goodbusiness practices in response to global challenges, to use ESG-related management tools and resources and to be
involved in specific working groups.
In 2022, together with 29 other businesses, Brembo contributed to drafting the Position Paper on "Sustainable Supply Chain Management:
Responsibility and Opportunity for
Businesses” to enhance the commitment of the private sector participating in the UN Global Compact andidentifies the responsibilities andopportunities to engage all players
across the supply chain in corporate
sustainability strategies.
In 2023, Brembo participated in the

study by Global Compact Network Italia “Italian Business Commitment towards Net Zero” conducted in collaboration with IPSOS (a market analysis
and research organisation) and presented to an international public for
the first time at the COP28 in Dubai.
The study aims to outline the state of
the art regarding the Climate Action
and commitment of Italian companies and, in particular, their contribution to the Net Zero target, highlighting the drivers and barriers thatcharacterise the Italian business community.
Brembo S.p.A.’s participation in the
Global Compact testifies to its longcommitment to sustainability, which
over the years has featured an increasing focus on numerous fronts
and adherence to the 17 Sustainable
Development Goals defined by the
UN 2030 Agenda.

Annual Sustainability Report 2023

9

DRIVEN BY OUR VISION“TURNING ENERGY
INTO INSPIRATION”
Electrification, digitalisation, autonomous driving and

SENSIFY is the tangible outcome of this vision: the firstenvironmental sustainability are macro-trends that havefluid-free intelligent braking system that constantly

been at the centre of the automotive world and theinteracts with the driver with a view to shaping a world

strategies of the market’s main players for some years.

without accidents. Its launch on the market, planned for
2025, will truly revolutionise the automotive industry.

Within this scenario, Brembo has been pursuing its missionof becoming a Solution Provider by proactively rising to

At the heart of the Group’s strategic vision there is also

the challenges posed by the ongoing transformation,

an overarching commitment to sustainability that has

focusing on the needs and desires of the new generations,become a modus operandi within Brembo, permeating

which will be the users of tomorrow.

all activities, processes and products. This sustainabilitydriven approach is increasingly present also in the

Brembo continues to invest significantly in innovation,

relationship with its People, with its supply chain and indriven by its vision “Turning Energy into Inspiration”, which

the local areas in which the Group operates.

encourages the Group to extend its sphere of influence toembrace energy management in its broader meaning,not only

In 2023, the Group continued to implement strategic

in terms of components, but also in its role as authoritative

projects within the three Pillars — Digital, Global and Coolsystems provider. In addition to innovative hydraulic andBrand — through dedicated working groups that leveragemechanical components, innovation is also applied toa shared leadership and the cross-cutting competencies

software and artificial intelligence: this combination allows

of all parties involved, engaging all Group Regions andto aim at a high added-value product and service integration

outlining the growth direction for the forthcoming future.

in order to anticipate the new mobility paradigms.

10

Annual Sustainability Report 2023

Brembo’s Purpose

DIGITAL
The world has entered the era of artificial intelligence applications focusing on data processing. The ability toanalyse and manage data is a crucial skill for continuing to grow and create innovation. Accordingly, Brembo has
set itself an ambitious goal: becoming a company that, alongside the production of braking systems, is able todevelop and offer all-round solutions to its customers through the widespread dissemination of a solid data culture
within the Group and an increasingly data-driven approach. BREMBO SOLUTIONS is a brand new unit of the Group
that develops breakthrough solutions based on the “AI-DOING” approach, which combines Brembo’s experience inartificial intelligence and its application in the industrial field”.

GLOBAL
Brembo has long ago embarked upon its decentralisation path and has now become a Group operating in 15
countries worldwide. Within this context, the Global Pillar aims to balance the Group’s international footprint, notonly from a commercial standpoint, but also in terms of technology and innovation, by developing and encouraging
excellence at local level for the benefit of a global organisation whose mindset is based on multiculturality, valuingof diversity and with inclusion as a shared value. One essential asset for achieving this goal is Revelia, Brembo’s
first e-commerce platform, created in China and dedicated to the consumer market. It seeks to establish a direct
relationship with consumers, promote the brand with the younger generations and collect the data increasingly
necessary to supporting the business strategy.

COOL BRAND
Brembo does not set limits on creativity and considers it essential to continuously engage in strengthening its
brand, anchoring it to new trends that are reconfiguring mobility in line with the values and sensibilities of the
new generations, especially Generation Z. The objective is thus to identify their passion, needs and tastes, andtranslate them into a unique brand experience able to generate tangible solutions. In 2023, the second edition of
the Brembo Hackathon was successfully completed at the Brembo Inspiration Lab in Silicon Valley: participants
immersed themselves in machine learning and artificial intelligence to revolutionise today’s braking technologies,
going beyond the traditional innovation processes, in line with Brembo’s vision.

Annual Sustainability Report 2023

11

SUSTAINABILITY HIGHLIGHTSTHE GROUP

15

Countries in which
the Group is present

13,654

1

Employees

9Group brands

412

9

Research centresof the Group€ million

3,849

Net investments

Turnover

28

228

2

€ million

SUSTAINABILITY

13

CSR Champions
within the Group

Ideas competingfor the Brembo
SustainabilityAwards

3,090

45 %

11

36.4 %100 %CSR Ambassadors
within the Group15

Sustainability
objectives published

COMPANY STRUCTURE
3Brembo’s employees
trained on the Codeof Ethics in 2023

Proportion of
women in the BoD

Annual meetingsof the Audit, Risk &Sustainability Committee(ARSC)

4

Members of the BoD
with ESG-related skills

ISO 27001 certified sites

PEOPLE

15,653

5

Brembo People

12

Annual Sustainability Report 2023

over

350,000
Training hours
provided in 2023

88 %

6

ISO 45001
certified plants

Sustainability Highlights

THE SUPPLY CHAIN

90.6%

78.2%

VALORE FORNITURE ...
ATTIVITA DI AUDIT SOCIO AMBIENTALI

7

Local supplies: supply from suppliers
located in the same geographical areas
where the Group operates

Suppliers of direct materials that since 2015
have been involved in social and environmental
audits (in terms of value of supplies)

SYNERGIES AND INNOVATION

1,555FTE

100 %-11.2 %

100 %

52 %

-9.5 %

75 %

3,902

Patents, utility models
and designs

98Plants with IATF 16949
quality certification

People employed
on R&D activities

ENVIRONMENTRIDUZIONE CO2 PER
TONNELLATA
FUSA

Emissions of CO2
per cast tonne10
compared to 2022

Emissions of CO2 perunit of finished product11
compared to 2022

12

13

ISO 14001
environmentallycertified plants

ISO 50001 energy
certified plants

Electricity comingfrom renewable sources

LOCAL AREAS

3,675€ million

Economic value
distributed

over

5,000

Unique beneficiaries
reached since the launch of
the “House of Smile” project”

AREE INTERVENTOPROGETTI SOCIALI

6

Action areas forsocial projects

Notes
1
2
3

4
5
6
7

The employee of Brembo Reinsurance AG, which is not included in the scope in thisdocument, is also included.
Cash flows generated by net investments in property, plant, equipment and intangible
assets, calculated as the sum of increases (net of decreases) in property, plant, equipment
and intangible assets. The figure does not include Increases in leased assets.
Minimum quota of the less-represented gender in the corporate bodies of listedcompanies (Law No. 160 of 27 December 2019), in force at the date of appointment of
the Board of Directors (General Shareholders’ Meeting of 20 April 2023) for the 2023-2025
term.
The ISO 27001 certified sites are: the three Italian sites of Brembo S.p.A. (the Headquarters
and the Curno and Mapello production hubs), La.CAM S.r.l., Brembo SGL Carbon Ceramic
Brakes S.p.A., the three Brembo Poland Sp.z.o.o. production hubs and Brembo Czech S.r.o.
The number of Brembo People includes employees and temporary workers.
36 plants out of 41 obtained the certification. SBS launched the process.
This includes the costs of purchasing goods and services directly involved in the manufacturingof finished products, namely purchases of: raw materials, components, semi-finished andfinished products, ancillary materials and services (mostly transport, utilities, packaging and
MRO). The scope of analysis was expanded to also include the provision of services not closely

89associated with production, such as the costs of ICT and telephony, cleaning, security andcanteen services. Tax and legal advice, insurance, sponsorships, business travel, recruitment
and training activities, building leases and industrial assets are excluded.
Full Time Equivalents – FTEs represent the workforce calculated based on the hours
actually worked and/or paid by the company in which they are employed.
The Zaragoza site is ISO 9001 certified since the IATF scheme does not apply to aftermarket
sites. For the new plants of J.JUAN (Myasl and Jiaxing), which were ISO 9001-certified
upon their acquisition, activities are underway to integrate them into the Brembo Quality
Management System. This will lead to the IATF 16949 certification by Q1 2024.

10 Scope 1 and market-based Scope 2 emissions, generated by foundries / gross tonnes ofmolten cast iron and molten aluminium.

11 Scope 1 and market-based Scope 2 emissions, generated by finished products / total
number of pieces manufactured.
12 The plants falling within the ISO 14001 certification scope are operating industrial plants
or plants that have been part of the Group for at least two years.

13 The plants falling within the ISO 50001 certification scope are operating industrial
plants or plants that have been part of the Group for at least two years and with energy
consumption exceeding 5,000 GJ.

Annual Sustainability Report 2023

13

14

Annual Sustainability Report 2023

The Main Economic, Social and Environmental Challenges

THE MAIN ECONOMIC, SOCIALAND ENVIRONMENTAL CHALLENGES

According to the analyses of the International Monetary Fund's World Economic Outlook, the macroeconomic context was marked by considerable complexities in 2023. The main forces influencing the global
economy continue to include the instability caused by the Russian invasion of Ukraine and the war in
Israel, the increase in energy prices and delays in the procurement of raw materials.
In response to these challenges, Brembo has strengthened its commitment to monitoring the evolutionof the geopolitical situation, for which it maintains a dedicated working group. Since the very first daysof the Ukrainian crisis, the Group has taken proactive measures, blocking the sales of Aftermarket products in Russia and Belarus to mitigate direct impacts.
The increase in raw material and energy prices resulted in constant inflationary pressure, with European Central Bank interest rates up from 3.0% in February 2023 to 4.5% in September 2023. Brembo faced
this challenge through price hedging strategies and attentive management of its supplies. In addition,
the Group continued to implement mitigation measures for both energy and access to raw materials.
The energy crisis in Europe was dealt with at the political level through the REPowerEU agreement,
designed to reinforce energy independence and expedite the green transition. Brembo is actively involved in this process, contributing to the diversification of energy sources and to the adoption of moresustainable practices.
The climate and environmental scenario remains a priority in terms of reflection and action. The COP28,
held in Dubai, underscored that progress has been too slow in all areas of climate action: from reducing
greenhouse gas emissions to strengthening resilience to climate change and financial and technological support for vulnerable countries. A plan of action was thus approved to speed the energy transition
while reducing the consumption of fossil fuels in favour of greater development of renewable sources,
and in particular of wind and photovoltaic energy, in order to achieve the goal imposed by the European
Union Net Zero Emissions by 2050. The introduction of the Loss and Damage Fund at the COP28 thisyear is a step towards climate justice, by holding developed countries responsible for providing financial
support to the most severely affected countries.
At the European level, the implementation of the Carbon Border Adjustment Mechanism (CBAM) is asignificant progress to protect European companies against unfair competition. Brembo has adopted
strategies consistent with the CBAM and will continue to contribute actively to the EU’s climate efforts.
Lastly, Brembo has intensified its efforts to mitigate the effects of global supply chain disruptions. Collaboration with its supply base, onshoring of supply arrangements and constant dialogue with business
partners have been crucial to ensuring supply continuity and priority.
Brembo thus faced economic, social and environmental challenges in 2023, proving its resilience andadopting proactive strategies to contribute to global economic and environmental sustainability.

Annual Sustainability Report 2023

15

THE GROUP

9

RESEARCH
CENTRES OF
THE GROUP

BELIEVINGIN TOMORROW
Convinced of the need for a new mobility that is increasingly green
and on a human scale, the Brembo Group is one of the major players
in the transformations taking place in the automotive sector.
It is present in fifteen countries around the world
and invests in research, technology and human capital.

15
9

GROUP
BRANDS

COUNTRIESIN WHICH
THE GROUPIS PRESENT1. The Group

1. THE GROUP
9

15

9

Group
brandsCountries in which
the Group is present

Research centresof the Group

1.1 G
 ROUP PROFILEAND MAIN APPLICATIONSThe Brembo Group — a global leader and recognised innovator in brake disc technology for vehicles — designs,
develops, manufactures, assembles and sells braking systems, vehicle wheels and light alloy and metal castings.
It supplies high performance braking systems, as well as

clutches and other components for racing, to the most important manufacturers of cars, motorbikes and commercial
vehicles worldwide.
The Group currently operates in 15 Countries on threecontinents.

FIGURES FOR THE THREE-YEAR PERIOD 2021 - 2022 - 2023 1415

13,65414

Employees
12,225 – 12,956

666€ million
Ebitda503 – 625

412

15

€ million

Net investments
210 – 282455

€ million

Net financial debt
412 – 502

3,849

€ million

Turnover2,778 – 3,629

305€ million
Net profit
216 – 293

14 The employee of Brembo Reinsurance AG, which is not included in the scope of this document, is also included.
15 Cash flows generated by net investments in property, plant, equipment and intangible assets, calculated as the sum of increases (net of decreases)
in property, plant, equipment and intangible assets. The figure does not include Increases in leased assets.

18

Annual Sustainability Report 2023

1.1 Group Profile and Main Applications

MAIN APPLICATIONS

73.5%

11.9%

on total sales

on total sales

CARS

MOTORBIKESThis is Brembo’s main area of operation and includes
brake discs, brake calipers, wheel-side modules andcomplete braking systems, inclusive of the integrated
engineering services that accompany the developmentof new models for car manufacturers. In addition to its
Original Equipment Manufacturing (OEM) line, Brembo
also provides components to the aftermarket segment,
offering a wide range suited to nearly all vehicles on theroad in Europe, including brake discs, pads, drums, brakeshoes, drum brake kits and hydraulic components.

This area includes brake discs and calipers, but also brakepumps, light alloy wheels and complete braking systems,
intended for the models offered by the world’s most prestigious manufacturers. Europe, the United States and the
Asian countries are the most important markets for Brembo in this sector.

4.8%

on total sales

9.8%

on total sales
COMMERCIAL VEHICLESThis segment includes components for original equipment brake systems for manufacturers of commercial
and industrial vehicles of all kinds (light and medium)and discs for heavy vehicles. In addition to its OEM line,
Brembo offers replacement parts and maintenance products for commercial vehicle brake systems.

RACING
This segment includes the design and manufacture ofbraking systems and clutches for the racing sector, intended for teams participating in major racing competitions. Despite its limited impact on revenues, it is amarket of strategic importance for the Group since it isa frontier sector for innovation by Brembo. The most advanced products, technologies, production concepts andcutting-edge development methods are conceived for the
racing market and the benefits then trickle down to theseries production designed by the Group for its customers. The racing line is rounded out by a range of products
intended for enthusiasts, preparers and, more generally,
those who wish to improve the look and performance of
their vehicles using parts ready for the track.

Annual Sustainability Report 2023

19

1. The Group

1.2 D
 IGITAL TRANSFORMATION PROGRAM:FROM PRODUCT BUSINESS TO SOLUTIONPROVIDER
Brembo is changing its essence, moving from brake manufacturer to Solution Provider: in this process, digital transformation is one of the essential steps. This journey does not
distort Brembo's principles, rather it represents the Group's
natural evolution: from manufacturer to solutions provider
able to offer unique experiences, with an unconventional
overview, guided by experience and a pioneering approach.
Under the guidance of the Chief Transformation Officer,
who acts as Digital Pillar Leader, Brembo has thus definedits Digital Transformation Program with the aim of:•simplifying, standardising and improving processes at
Group level, making them faster, as well as more effective and efficient;becoming a reliable and innovative partner for its customers and suppliers, able to ensure quick, safe andtransparent communication.

•“Journey” is undoubtedly the best term to describe thisglobal programme that Brembo is taking forward to realise
its vision and become an attractive digital Company andthe best business partner our customers can have.
In fact, “Journey” is precisely the terminology used internallyto refer to the 11 Streams, which represent all sectors of thebusiness, from purchasing to manufacturing, finance andsales,in which Brembo’s ambitious digital transformation has
been conceived and organised, and which in 2023 saw morethan 10 projects underway,in addition to the above-mentioned
11 journeys, which involved over 350 employees.
At the end of the path, businesses will be completely digitised and data driven, in other words driven exclusively by
the ability to analyse and process large volumes of data inreal time, developing in people an increasingly digital, open,
data-driven mindset oriented to being a Solution Provider.

BREMBO’S STREAMS
1

INTEGRATED BUSINESSPLANNING

Anticipate market needs for new products / solutions and optimize Brembo resources
and capabilities utilization to maximise growth and profitability

2

PRODUCT & SOLUTIONSDEVELOPMENT

Boost and accelerate Product Development Process with digital best practices aiming
at optimizing time to market, product development costs and quality

3

SMART MANUFACTURING &WAREHOUSING

4DIGITALPROCUREMENT

5DIGITAL FINANCE &CONTROLLING

6

CORPORATECONTROL TOWER

7

CONSUMER ENGAGEMENT(DIGITAL, MOTORSPORT, …)Strengthen Consumers intimacy across physical and digital channels, buildinga “One Brembo” Value Proposition

8

SALES & CUSTOMER SERVICE(OEM)

Partner with OEMs to support their innovation process through integrated solutions
and ensure best-in-class service level and customer support

9

SALES & CUSTOMER SERVICE(AM)

Support the AM innovation process through integrated solutions and ensure
best-in-class service level and customer support

10

PEOPLE & CHANGE
MANAGEMENT11

TECHNOLOGY& INNOVATION DELIVERY20

Annual Sustainability Report 2023

Improve visibility and performance across Operations leveraging IoT, Artificial Intelligenceand Automation to successfully manage raising complexity
Simplify and automatise the product procurement process, leveraging the synergies offeredby digitalisation to optimise the procurement process timings and costs
Standardize controlling and administration by enhancing data visibility and simplifying/automating transactional process
Evolve Corporate processes into paperless, integrated and digital to enable smooth
the Group operations and meet best-in-class performance standards

Simplify, standardise and digitise HR processes and orchestrate the adoption of a Brembo
mindset: open, data driven, digital ready, and oriented to a Solution Provider approach
Establish digital technologies as a strategic lever in developing innovative, data driven solutions
for internal and external clients1.2 Digital Transformation Program: from product business to Solution Provider

All the Journeys are guided by a single Steering Committee,
which harmonises the entire programme, while the monitoring of progress and the management of the actions tobe addressed is entrusted to a dedicated manager for each
Journey, relying on a programme management tool aimed
at supporting the whole organisation in constantly monitoring the progress of the initiatives.
The programme is divided into three stages. The first “Discover & Describe” was concluded at the beginning of 2022,
followed immediately by the central phase, “Design &Build”, which will see the implementation by 2026 of mostof the technological solutions that will make up the new
Brembo.
The third and final phase, “Run & Evolve” will begin to proceed in parallel with the second, in a timeframe aiming for2026. The whole programme will be completed in 2030.
The Roadmap, described within the Programme Charter,
was approved by the Steering Committee, with the involvement of the CEO, and also submitted to the attention of theTransformation Committee and the BMC (Business Management Committee).
The initial choices, underlying this transformation, were
those relating to the new company ERP, the management
system on which the different tools will be grafted, andthe choice of the technological partners with whom to undertake the journey. The other initiatives adopted that will
embrace all businesses are multiple and move along four
drivers to make Brembo increasingly competitive: Innovation, Sustainability, Interconnection and Security.

INNOVATIONIn recent years, the scenario in which each company operates has seen an increase in the risks associated with thesecurity of their data and business continuity. The numberof attacks suffered by companies, as well as the techniques
used and the impacts undergone are reaching extremely
significant levels. The Group is therefore increasingly committed to implementing the most effective technologies
and controls to reduce impacts and protect both the Company and its customers and personnel. In fact, protecting
know-how, confidential information and stakeholder data
has always been among Brembo’s priorities, out of anawareness of the operational, strategic, reputational andeconomic damage that the Company may suffer.

An emerging new technology that has taken on growing
importance in recent years is generative AI. Increasingly used in enterprise environments, generative AI confers
many advantages at the level of business productivity, butalso carries many risks in terms of data protection, compliance and intellectual property.
Yet, this technology has important applications in theprotection of company information and cybersecurity.
Since the Group is committed to innovation also in thisarea, it is gradually introducing it for data protection purposes as well.

SUSTAINABILITY
The challenge the Group decided to take up is to contributeto making Brembo a Company that is as sustainable aspossible, recognising sustainability as an essential value,
and at the same time guaranteeing quality services to thewhole business. As the impact of a high-performance IT
infrastructure on energy consumption can be significant,the Group’s attention has been focused precisely on this
aspect. By adopting the "Cloud-first" principle — a pillarof Brembo’s corporate digital transformation —, a stateof-the-art infrastructure will be ensured. At the same time,
our energy impact will be reduced, capitalising on what thebest Cloud providers make available. In 2022, Brembo migrated the entire e-mail infrastructure, shutting down 90%
of dedicated servers in server rooms, and improving service
quality and availability.
Automation and paperless are, without a doubt, the terms
that can best describe the results achieved in 2023. As digital signature, which has allowed to speed up and optimise
company authorisation processes, while also enabling us
to work wherever we go — in addition to reducing the environmental impact of printing documents, which are now
shared solely in electronic format. Since digital signatures
were introduced in Italy, 568 contracts have been signed,
for a total of 3,317 pages not printed.
In a scenario like the one that is being designed — increasingly based on computerised services — such services must
always be available and, above all, those who use themmust be able to solve any problems as swiftly as possible.
At a multinational like Brembo, this also means overcoming the time difference barrier.

Annual Sustainability Report 2023

21

1. The GroupTo ensure clarity, speed and ease of use, Brembo People
can now use a bot. This allows to easily monitor the statusof their IT requests, without waiting for the intervention ofa person who might not be available, but simply chattingwith this easy-to-use, always available virtual assistant, regardless of their position and time zone.

Incident management controls were also reinforced in 2023.
Thanks to the introduction of SOAR technology, the processof reacting to and containing security incidents and theirimpacts more quickly was automated and streamlined.
SOAR technology, which makes it possible to automate
analyses and actions that normally need to be done by anoperator, enables instant intervention when problems aredetected.

INTERCONNECTION
In 2022, Brembo adopted Microsoft's Office 365 suite on
the Cloud, significantly changing the way in which it collaborates. The "Brembo Space" is already the present, nolonger just a goal to be achieved to improve the personnel’s user experience. Thanks to these new tools, Brembo is
now able to communicate in a more effective and efficientmanner, everywhere and through any device. It is possible
to plan the activities of “virtual teams” and track progress
dynamically, working simultaneously on the production of
the same content, while ensuring the security and qualityof the data produced. The secure integration of all collaboration tools with those of the key partners, reducing theirneed to travel and rationalising face-to-face meetings, continued in 2023. The possibilities are countless and our journey in this globally connected world has only just begun.
The benefits are already evident and confirm that the rightpath has been taken to increase Brembo’s sustainability inthe three pillars identified.

In addition, a very significant project for the governance ofdigital identity in the IT system was also launched. It willallow the Group to have easier control on data access, andto ensure optimised application of the principles of need-toknow and segregation of duties.

SECURITYThe Group’s commitment to adhering to industry standards
on information security continues to grow. As a proof ofthis, in 2023 for 100% of our sites subject to audits aimed at
obtaining the ISO 27001 certification, the certification was
confirmed. In particular, in 2023 it was obtained at 100%of sites in China — one of the most important regions for
Brembo's business.

In terms of awareness as well, the efficacy of our awareness-raising campaign is underscored by the results of themost recent phishing campaign, which shows a 32% decrease in the number of phishing victims.

Extensive measures to protect information were adopted
in 2023. In this regard, IT security was evaluated at 12 of the
25 sites using TISAX, an information security standard forthe automotive industry managed by the ENX Association,used to evaluate and agree on security practices between
companies through independent audits. The goal is to guarantee high standards of security in supply chains in the automotive industry.

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Annual Sustainability Report 2023

The implementation of the SOC service and improvementof log collection and analysis yielded their first results in
2023.
From January to December 2023, log collection increasedby 49%. This made Brembo more aware of what is happening in its environment. In parallel, the number of use
cases of anomalies provided to the SOC was increased inorder to improve detection capabilities. Due to this increasein the number of use cases, the total number of incidents
rose by 9%, but the average number of incidents per use
case decreased from 17 to 5. In this way, Brembo has more
information concerning its environment, more anomalies
can be detected, while the existing controls are significantly
reducing the negative impacts of any events.

1.2 Digital Transformation Program: from product business to Solution Provider

In May 2023, Brembo launched“Brembo Solutions”, a brand new unitof the Group which combines Brembo’s experience in artificial intelligenceand its application within industry inorder to provide businesses with new
digital solutions.
Brembo Solutions’ offer of digital
expertise extends beyond the automotive market to help foster the
adoption of more agile and innovative processes across other manufacturing and industrial sectors. The newunit’s solutions are based on Brembo’s successful and tangible improvements to its own production processes – an approach the company calls
AI•Doing. The term AI•Doing makes
reference to Brembo’s experience inartificial intelligence (AI) algorithms
and its practical application in the industrial field (Doing).
Using this approach, Brembo is applying advanced AI applications toensure products are of the highest
quality, as well as helping increase
production efficiency. It is also developing data models, based on data
science methods, to enable data-driven decision-making.
Brembo Solutions represents anotherimportant element of the Group’s industrial strategy. Thanks to this unit,
Brembo becomes a solution provider
even beyond the automotive sector.
Through this innovation, Brembo is
responding to market needs, making
Brembo’s experience in digital inno-

vation available to all companies thatwant to improve their efficiency andcompetitiveness. Brembo Solutions
develops tailor-made solutions forcompanies in various sectors, from textiles to food, and from the iron and steel industry to large-scale distribution,
among others.
For more information on Brembo Solutions: www.brembosolutions.com

To learn more about
Brembo Solutions

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23

1. The Group

1.3 BREMBO’S HISTORY

1960s
INNOVATION

1990s
THE WORLD

Brembo is founded in 1961, near Bergamo, by Emilio Bombassei, his sons Sergio and Alberto, and his brother-in-law
Italo Breda. The Company initially carries out mechanicalproduction for third parties, serving clients such as Alfa
Romeo and Pirelli. Thanks in part to a fortuitous event, itestablishes a winning business model in 1964: producing
car brake discs, the first in Italy. In 1965, Brembo has just 28
employees, but it is already focusing on innovation in bothmaterials and production processes.

Brembo continues to grow: in 1995, the Company is listedon the Milan Stock Exchange. This marks the start of a strategic process that will lay the foundations for market andproduction globalisation. Brembo starts manufacturing
in Spain, Poland and Mexico, and also for the US market,
where Chrysler is its first client.
These are years of radical innovation, with the first monobloc brake calipers for cars and the first radial-mount calipers for motorbikes.

1970s
PERFORMANCE

2000s
STYLE AND DESIGN

Brembo invests in research and development, coming up
with new solutions, and registers its first patent in 1970.
It creates the first highly innovative disc brake system forMoto Guzzi in 1972. The turnaround comes in 1975, when
Enzo Ferrari asks Brembo to equip his Formula 1 vehicles.
Brembo enters the world of motor sport. This is followed
by a partnership with MV Agusta for the MotoGP. Challenge
and innovation: providing better and better performances
becomes one of Brembo’s distinguishing features.

Brembo continues its expansion, encompassing Brazil, theUK, China, Japan, India and the USA. The braking systemwith carbon-ceramic discs makes its debut, winning theprestigious Compasso d’Oro in 2004: style and design characterise the world of Brembo more than ever before. The
Brembo Research & Development Centre is opened in the
Kilometro Rosso Science and Technology Park in 2007.
Its success in the world of sport continues: Brembo is world
champion in the majority of racing championships.

1980s
COMFORT

From 2010 to 2020
ONGOING EVOLUTION

Brembo devotes itself to studying innovative materials. In
1980, it develops the first aluminium caliper — adopted
by Porsche, BMW, Lancia, Nissan and Chrysler among others — followed, in 1984, by the first carbon brake disc for
Formula 1.
In addition to top performances, clients demand comfort
and no noise or vibrations. The Company begins to carryout its first tests on a sophisticated dynamic test bench. In
1985, Brembo becomes a strategic supplier for industrial
vehicles built by Iveco, Renault and Mercedes.

Always ready for new technological challenges, Brembochooses industry 4.0, a real revolution in industrial automation to improve productivity and working conditions, aswell as to best address the automotive sector’s electrification process. The Group complements the launch of newsites and production lines at global level with the openingof the Research and Development department centres alsoin Poland, China, India and the USA. A milestone honours
a history of success: in 2017, Brembo’s President Alberto
Bombassei is added to Detroit’s Automotive Hall of Fame.

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Annual Sustainability Report 2023

1.3 Brembo’s History

From 2020 onwards
TURNING ENERGY INTO INSPIRATIONIn spite of the global challenges caused by the pandemics
that hit the whole world in 2020, Brembo continued withdetermination its path of innovative development in the automotive sector. In 2020, the Group presented a new Visionand new Mission statement, aiming at becoming a Solution
Provider to address the new challenges posed by mobility.
In 2021, Brembo presented SENSIFY™, the first intelligent
braking system that integrates the most advanced softwarewith the Company's braking components — thus marking
a significant step towards the implementation of the new

Mission statement. Brembo's evolution into a Solution Provider is also reflected in the definition of a new visual identity and a new logo with a simple and modern design. Presented in 2022, they express both the Company’s legacy andpath of transformation, for an ever-deeper dialogue with thedigital native generations. In the same period, Brembo also
launched Greenance, a range of products dedicated to thecar, motorbike and commercial vehicle spare parts market,
anticipating the low environmental impact needs withoutcompromising performance.

2023
SPEEDING TOWARDS THE FUTURE
2023 was a year of growth, marked by significant challenges for Brembo. In a courageous, ambitious move, the Groupinvested over half a billion euros in reinforcing production in
Mexico, China and Poland. It also stepped up the production
capacity of the joint venture BSCCB in Germany and Italy
and expanded the headquarters by purchasing the building
designed by architect Richard Meier at Kilometro Rosso.
As part of the strategy of developing innovative solutions,
the SENSIFY™ roadshow was a success, and received positive feedback all around the world, from Italy to the UnitedStates, China and Japan. Brembo Solutions was created in
2023 to provide solutions based on Brembo’s experience inapplying AI to industry. In product development, new cali-

pers were introduced, such as Octyma for cars and Hypure
and GP4-MotoGP for motorbikes. In motorsports, Brembo
celebrated the milestone of 500 Grand Prix victories in Formula 1, confirmed its presence in MotoGP by being named
Braking Inspiration Partner and supplied 44 of the 62 vehicles competing in the 100th edition of The 24 Hours of Le
Mans as Braking Technology Provider.
This process of innovation and growth bears witness toBrembo’s commitment to increasingly be a benchmark
player of the automotive industry, rising to the challenges
of sustainability and staying on the cutting edge of the newmobility.

To learn more about
MotoGP braking inspiration
partner

Annual Sustainability Report 2023

25

1. The Group

1.4 BREMBO’S GLOBALFOOTPRINT

Italy
Stezzano, Curno, Mapello, Sellero
Czech Republic
Ostrava-Hrabová
Denmark
Svendborg
Germany
Leinfelden-Echterdingen, Meitingen *PolandCzęstochowa, Dąbrowa Górnicza, Niepołomice
RussiaMoscow
Spain
Barcelona, Zaragoza
SwedenGöteborg
United Kingdom
Coventry
Brazil
Betim
MexicoApodaca, Escobedo
USA
Homer, Plymouth, Sunnyvale, Wilmington

China
Nanjing, Langfang, Jiaxing, Qingdao, Jinan *IndiaPune, Chennai
Japan
Tokyo

Manufacturing sites
Commercial sites
R&D centres
Brembo Inspiration Lab

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Annual Sustainability Report 2023

* T his NFI does not include the figures regarding these production plants.

1.4 Brembo’s Global Footprint

15

Countries
in the world

25

Manufacturing
sites

9

R&D centres(including Brembo Inspiration Lab)

Annual Sustainability Report 2023

27

1. The Group

1.5 T
 ARGET MARKETS AND BRANDS

Brembo's reference market is represented by the most important manufacturers of cars, motorbikes, commercial vehicles and racing cars and motorbikes.

BREAKDOWN OF NET SALES BY APPLICATION(% OF TOTAL)

4.8%

In 2023, Brembo’s consolidated net sales amounted to€3,849 million, with a 6.1% increase compared to €3,629
million in 2022.

Cars
In 2023, the global light vehicle market increased by 9.5%
on a year basis compared to 2022, with 83.6 million units
sold. In the second half of the year, the uptrend surged,
with monthly double-digit increases in percentage terms.
Car registrations in the Western European market "EU14,EFTA and the United Kingdom" performed very well in
2023, with a 13.7% increase compared to 2022. All themain markets closed the year on a positive note: Italy (+19.3%), France (+14.7%), Spain (+17.4%), Germany(+7.6%) and the UK (+18.4%). Eastern Europe (EU12) also
recorded a robust increase of car registrations (+34.9%
compared to 2022). In Russia, light vehicle registrations
closed 2023 with a 57.8% increase on the previous year.
Sales in the United States also performed well, rising
15.7% overall compared to 2022. Brazil and Argentina recovered compared to the previous year, growing by 11.5%
and 15.3%, respectively. With reference to asian markets,in the twelve months of 2023 light vehicles sales rose
by 6.1% in China compared to the same period of 2022
and confirmed the Country as the top global market withover 23.3 vehicles sold throughout the year. This figure islargely attributable to exports and to the growth of many
OEMs, especially those operating in the EV sector. The
Japanese market also closed the year on a positive note,with a 13.4% sale increase compared to 2022.
Within this scenario, Brembo’s net sales of car applications in 2023 amounted to €2,830 million, accounting
for 73.5% of the Group's turnover, up by 7.2% compared
to 2022.

Motorbikes
Europa, Stati Uniti e Giappone sono i più importantimercaEurope, the United States and Japan are Brembo’s
most important markets in the motorbike sector. Whenconsidering two-wheel vehicles alone, Europe closed
2023 with a 4.4% increase of registrations compared to2022. In Italy, sales of motorbikes and scooters, considered together, rose by 15.8% compared to 2022. Consid-

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Annual Sustainability Report 2023

Racing

9.8%

Commercial
Vehicle11.9%

Motorbike

73.5%

Passenger Car

ering only the registrations of motorbikes, growth was
14.9% (+21.5% for motorbikes with displacements over
500cc). Scooters rose by 20.6% on 2022. In the UnitedStates registrations of motorbikes, scooters and ATVs (All
Terrain Vehicles, quadricycles for recreation and work)
closed 2023 with a +1.5% increase on 2022. ATVs alone
declined by 7.1%, while motorbikes and scooters together rose by 4.4%. The Japanese market, considering displacements over 50cc overall, improved by 23.0% overall
during the twelve months of 2023. Analysing displacements over 125cc alone, it grew by 4% in 2023 comparedto the same period of the previous year. Registrations of
two-wheel vehicles increased by 9.1% in India comparedto the previous year, while Brazil reported a 16.1% increase compared to 2022.
In this contest, Brembo's net sales of motorbike applications amounted to €457 million in 2023, down by 4.1%
compared to €477 million for 2022.

1.5 Target Markets and Brands

Commercial and Industrial Vehicles
In 2023, the European commercial vehicles market "EU,EFTA and the UK" — Brembo’s reference market —showed a 13.4% increase in registrations. In the reporting period, sales of light commercial vehicles (up to 3.5
tonnes) in Europe increased by 13.0% compared to 2022,with a growth on the previous year in all the main markets by sales volume: +9.3% in Germany, +6.4% in France,+18.0% in Spain, +18.8% in Italy and +18.7% in the UK.
In Europe, the segment of medium and heavy commercial vehicles (over 3.5 tonnes) increased by 15.2% in 2023
compared to the previous year. Among the first five European markets by sales volume, a positive performance
was reported by Germany (+24.2%), Spain (+14.2%), Italy(+12.3%) and France (+8.6%). In Eastern European countries (EU12) as well, sales of commercial vehicles over 3.5

tonnes reported a positive performance in 2023, especially in Poland and Romania. In 2023, Brembo's net sales ofapplications in this segment amounted to €377 million,
up 7.8% compared to €350 million for 2022.

RacingIn the racing sector, where Brembo has maintained undisputed supremacy for years, the Group operates throughthree leading brands: Brembo Racing (braking systems
for race cars and motorbikes); AP Racing (braking systems
and clutches for race cars); Marchesini (magnesium andaluminium wheels for racing motorbikes).
In 2023, Brembo's net sales of applications in this segment amounted to €184 million, up by 13.6% comparedto €162 million for 2022.

BREAKDOWN OF NET SALES BY GEOGRAPHICAL AREA (% OF TOTAL)

27.7%

0.9%

Other countries

9.3%
Italy

North America

19.3%
Germany
3.3%

2.1%

FranceSouth America

4.8%
United Kingdom

0.7%
Japan

1.3%
Other Asian
countries

12.9%
Other European
countries
14.1%
China

3.6%
India

Annual Sustainability Report 2023

29

1. The GroupTHE BRANDS
Brembo markets its products with the following nine brands:

Brembo is the leading brand in the design and manufacturing of braking systems for high-performance road and racing cars and motorbikes and for commercial vehicles. Performance, Comfort and Design are the brand’s distinctive
traits, which make Brembo’s products the most prestigious braking systems andcomponents.
Brembo Racing is the Brembo brand for the racing market. It identifies all products bound for the world of car and motorbike racing.
Brembo Racing products are designed to provide maximum performance under the most extreme conditions, and they are used by the best teams in themost prestigious F1, Indy, Nascar, Rally, MotoGP, Superbike, Enduro and Cross
championships. Since December 2018, Brembo Racing is the exclusive supplierof braking systems for Spark Racing Technologies, the sole maker of Formula E
championship racing single-seaters.
AP Racing is the leading brand in the production of brakes and clutches for
racing cars and motorbikes. AP Racing designs, manufactures and assembles its
cutting-edge, high technology products for the main Formula 1, GT, Touring and
Rally teams.
AP represents a brand of excellence in the world market of car braking systems and components. It embodies a long history punctuated by creativity
and achievement, which guarantees top-notch levels of product quality andperformance.
Marchesini is the leading brand in the design, production, and marketing oflight-alloy wheels for road and racing motorbikes.
ByBre, acronym for “By Brembo”, is the brand dedicated specifically to braking
systems for scooters and small and mid-power motorbikes.
Breco is the brand dedicated to the sale of discs and drums in the aftermarket
channel. Breco discs are certified as original or original-equivalent.
SBS Friction is a cutting-edge brand in the development, production and saleof aftermarket brake pads and friction materials for motorbikes, scooters, ATVs/
UTVs, special cars and industrial applications, as well as for wind turbines. The
product range also include brake discs, clutch kits, brake shoes, brake plates andother components.
J.Juan is a leader in the development and manufacturing of metallic braided
brake hoses and is also specialised in the production of motorbike braking system components.

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Annual Sustainability Report 2023

1.5 Target Markets and Brands

THE 2023 AWARDSGASGOO JINJI
AWARDS

Brembo was named as one of the “Top 100 players of China’s New Automotive Supply Chain for 2023” thanks to its pioneering intelligent braking system SENSIFY™.

LINGXUAN
AWARDS

Brembo Beyond Greenance Kit won the “Gold Award of the Chassis and Tire Forward-Looking Category” at the eighth
Lingxuan Awards, held in 2023.

CLEPA AWARD

In October 2023 Brembo was recognised by Clepa as “Top Innovator” in the “Green” category with the Brembo Beyond
Greenance Kit.

2023 BEST PRODUCTINNOVATION AWARD- GEELY AUTOMOBILEGROUP

At the “Architecture & New Energy Core Suppliers Talkfest” organised by the Geely Automobile Group, Brembo won the“2023 Best Product Innovation” award.

FEARLESSCONQUEST-IRON
FACE HERO AWARD

In August 2023, M-Hero bestowed on Brembo the “Fearless Conquest—Iron Face Hero Award” for the significant support
and collaboration in development, validation and mass production in the M-Hero 917 project.

2023 BESTINNOVATION AWARD- ZEEKRThe Zeekr Supplier Day 2023 was held in Chengdu, China, on 27 April 2023. Brembo won the Zeekr 2023 “Best Innovation
Award” for its innovative 6-piston caliper supplied to the Chinese brand for the first time.

BEST BRAND
2023

Brembo confirmed as “Best Brand”. In 2023 as well, the readers of specialist German magazines voted for the Italian Groupin a series of surveys in which the brands considered to be most prestigious amongst the different brake system producers
were chosen. Brembo was revealed as the favourite brand of Auto Motor und Sport, Tuning, Motorsport Aktuell, Motorrad,
Sport Auto and PS Sport Motorrad Magazine readers.

AAPEX AWARD

The Beyond EV Kit was named best product at the Automotive Aftermarket Products Expo (AAPEX).

RED DOT AWARD

In June 2023, Brembo was awarded the Red Dot Award for its 19RCS Corsa Corta RR - Race Replica, in the Product Design
category. The award represents one of the most important and prestigious design competitions, which selects and celebrates the best creations that combine innovation and aesthetics.

SUPPLIER MEET
AWARDS - ROYALENFIELDAt the Vendor Meet for the manufacturer Royal Enfield, on 28 July 2023 Brembo Brake India was named strategic partner
for performance in terms of quality, obtained thanks to an excellent PPM score, which allows it to support customers, enabling them both to overcome quality problems in the field and respond to quality problems relating to the line in real time.
Royal Enfield appreciates and rewards the initiatives adopted by Brembo Brake India, also in the sustainability area. These
include energy saving projects (recovery of heat from compressors, full LED lighting and improved ventilation system),renewable energy development projects (plant's rooftop solar installation and reduction of natural gas in painting booths)
and water conservation projects.

SVENDBORG
CLIMATEAWARD

SBS Friction recently obtained the prestigious “Svendborg Climate Award”, promoted by GO2Green and Svendborg Municipality. This award was created to reinforce the commitment to the ecological transition and celebrate those who alreadystand out for their concrete actions. It aims to offer sustainable examples of work organisation and daily life to inspire more
people and companies to adopt a more environmentally friendly lifestyle.

ECOVADIS

Brembo received the “Gold Sustainability Rating 2023” from EcoVadis, a French company that is currently the largest provider of corporate sustainability assessments, with a global network of over 100,000 companies in 200 industrial supply chainsand more than 175 countries. Based on 21 sustainability criteria, the EcoVadis rating assessed Brembo's performance infour key areas: the environment, work and human rights, ethics and sustainable procurement. At the end of the monitoringprocess, the Group was awarded a score of more than 70 out of 100, placing it in the top 5% companies in the ESG arena.

ESG IDENTITY IGICOMPANY 2023

In 2023, Brembo was confirmed as a Top Performer for ESG Identity in the Integrated Governance Index (IGI).

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31

1. The Group

WORKPLACEHEALTH PROMOTION(WHP) 2023

For the twelfth year running, Brembo (Stezzano site) received WHP accreditation (Workplace Health Promotion), confirming its constant commitment in providing its employees with high health and wellness standards.

FARO DEL
MEDITERRANEO ITALIAN CHAMBER
OF COMMERCE IN
BARCELONA

The Italian Chamber of Commerce in Barcelona bestowed the “Faro del Mediterraneo” award on Brembo for its excellence
and leadership. Each year, this award is given to one Spanish and one Italian company for their international trajectory andthe ties that they have formed between the two countries at the economic, commercial and cultural level.

RSA
ARAGONSEAL

The Aragon Social Responsibility Plan was launched at the end of 2015. The goal is to promote socially responsible practices among the greatest possible number of companies, organisations and self-employed professionals in the community.
For having successfully completed the Aragon Social Responsibility Plan, on 14 July 2023 the Aragon Institute for Development (IAF) granted Corporación Upwards ’98 S.A. the “Aragon Social Responsibility Seal”.

PREMIOTRÓCOLAIn September, Corporación Upwards ’98 S.A. received the “Most Important Supplier Award” at the Premio Trócola gala, heldby the specialist magazine Autopos at the Goya Theater in Madrid, where the entire Spanish aftermarket sector gathered.
The award is based on votes by the country’s most important manufacturers and distributors.

“BEST SERVICE AND
ATTENTION” AWARD– SERCA GROUPThe Serca distribution group (NEXUS) awarded Corporacion Upwards '98 S.A. recognition for the best service and attention.
This award is the result of the assessment by each partner of the group, a leading distributor of car parts in Spain.

CDP

Brembo obtained a significant result in the CDP Water and CDP Climate questionnaires, achieving an A- score, an important recognition of the Group’s commitment to environmental sustainability. This score reflects Brembo's efforts to effectively manage and reduce its impact on water resources and greenhouse gas emissions — two crucial problems for theplanet. The result encourages Brembo to continue its current journey, striving to further improve its performance in termsof resource management and its contribution to the fight against climate change.

A YEAR OF GREAT VICTORIES FOR THE BREMBO GROUP:MILESTONE OF 600 TITLES IN MAJOR MOTORSPORT COMPETITIONS CROSSEDBrembo, world leader in the manufacture of braking systems – ended 2023 with 70 world titles in the main two- andfour-wheel racing competitions. Noteworthy successes included its third consecutive Formula 1 championship with
Max Verstappen and Oracle Red Bull Racing, the victory by
Pecco Bagnaia of the Ducati Lenovo Team in MotoGP, thedomination of Alvaro Bautista of Aruba.it Racing-Ducati inWorldSuperbike and the wins by Pedro Acosta in Moto2
and Jaume Masiá in Moto3.
At The 24 Hours of Le Mans, Brembo triumphed in the Hypercar category, and in Formula 1 it reached the significant
milestone of 500 GP races won in nearly 50 years of participation. Brembo continues to dominate in MotoGP, Moto2,
Moto3 and World Superbike. For the eighth consecutive
season, the Group supplied all the riders — 31 in total —who took part in at least one MotoGP race. Brembo stands
out for the successes achieved in 35 riders’ world champi-

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Annual Sustainability Report 2023

onships and 36 constructors’ world championships won
with the main MotoGP teams.
In electric motorsports, 2023 was a triumph: Brembo continues its fifth consecutive season as exclusive supplier toall 22 full electric Gen3 single-seaters in the FIA Formula E
championships and is participating in its fifth consecutive
championship in the FIM MotoE World Cup, supporting the
18 electric Ducati vehicles.
Brembo’s constant presence consolidates its position as apoint of reference in the motorsport racing world. In addition to the aforementioned Formula 1, Formula E, MotoGP, Moto2, Moto3 and WorldSuperbike championships,
mention should also be made of the WEC, GT, IMSA, EWC,
Nascar, MXGP, Enduro, Trial, Formula 2, Formula 3, WRC,Super Formula, MotoAmerica and Porsche Supercup, for a
total of more than 600 world titles won between 1975 andtoday in the various categories.

1.6 Stock Performance

1.6 S
 TOCK PERFORMANCE

For a listed company, the value of its stock is an important
indicator of its credibility and reputation. For this reason
over the past few years the Group has paid particular attention to the brand's trust and relational capital and its competitive positioning. Brembo's stock closed 2023 at €11.10, a

6.2% increase compared to year-start, reaching the low for
the period on 30 October (€10.02) and its high on 28 February (€14.92). During the same period, the FTSE MIB index
closed upwards 28%, whereas the BBG EMEA Automobiles
Parts index rose by 14.7%.

BREMBO’S STOCK PERFORMANCE IN 2023

150

140

130

120

110

100

BremboFTSEMIB Index

BEUAUTP Index

90
Jan.

Feb.

Mar.

Apr.

May

Jun.

Jul.

Aug.

Sep.

Oct.

Nov.

Dec. 23

Annual Sustainability Report 2023

33

1. The Group

1.7 ETHICAL AND SUSTAINABLE FINANCE

In line with previous years, sustainability matters are moving an increasing amount of capital at a financial level. The
markets recognise the impact of risks arising from climatechange, biodiversity loss and degradation of social conditions, on the actual and potential growth of the economy.
In response to this scenario, Brembo has begun a process
aimed at leveraging the sustainability practices that havealways been a part of the Group, seizing the opportunities
offered by sustainable finance.
In 2020, the Group obtained a medium-/long-term “positiveloan” of €300 million from BNL of the BNP Paribas Group,
the residual value of which at 31 December 2023 was€200 million. The financial terms of the loan improve when
precise sustainability goals are met. Such goals are constantly monitored and measured.
Brembo is committed to a plan to constantly reduce emissions thanks to improvements in production facilities
through efficient energy use and the use of renewable energy sources. This plan is part of a broader strategy that alsoseeks to reinforce its capability to develop low environmental impact products. This is thus a two-fold objective — supporting the transition towards sustainable mobility and significantly reducing GHG emissions and the environmental
impact of Brembo’s production sites.

1.8 T
 HE EU TAXONOMYREGULATION No. 2020/852
In line with the goals of the UN 2030 Agenda, with the aimof achieving climate neutrality by 2050, the European Union has defined a series of strategies and initiatives aimed
at directing capital flows towards investments in assets
and activities deemed sustainable. In this regard, European institutions therefore introduced the Regulation (EU)2020/852 (hereafter also referred to as the “Regulation”),
which aims at providing reliable and common criteria andtools to identify sustainable economic activities, and at ensuring financial institutions and investors greater comparability regarding the degree of environmental-sustainabilityof an investment associated with that activity.
In particular, the Regulation introduced a unified classification system or “taxonomy”, of economic activities that,in order to qualify as “environmentally sustainable” must
contribute to achieving one or more among the following
six environmental objectives:
•
•
•
•
•
•

34

Climate change mitigation
Climate change adaptation
The sustainable use and protection of water and marine resources
The transition to a circular economy
Pollution prevention and control
The protection and restoration of biodiversity and ecosystems

Annual Sustainability Report 2023

Specifically, according to the Regulation, economic activities are broken down into:••

taxonomy-eligible: an economic activity is taxonomy-eligible if it is listed in the delegated acts of theRegulation, in correspondence with one or more environmental objectives. If taxonomy-eligible, the activity
has the potential to contribute substantially to the objective of reference;taxonomy-aligned: an economic activity is taxonomy-aligned if, in addition to being taxonomy-eligible, it iscarried out in compliance with the technical screening criteria and the minimum safeguards. Accordingly, it has to:• meet the substantial contribution criteria definedby the Regulation for each activity. On a scientificbasis, they describe the conditions to be met to substantially contribute to reaching the environmental
objectives;• Do No Significant Harm (DNSH) to any of the otherenvironmental objectives to which the economic activity does not substantially contribute;• comply with the minimum safeguards, ensuring respect for human rights and international legislation on
workers’ rights, taxation, fair competition and bribery.

If an activity is taxonomy-aligned, it may thus qualify as “environmentally sustainable”.

1.8 The EU Taxonomy Regulation No. 2020/852

Article 8 of the Regulation defines the reporting obligations within the Taxonomy, applicable to date to non-financial undertakings subject to the Non-Financial Reporting
Directive. After the Regulation entered into force, it was
progressively supplemented and extended to include new
sectors and activities, as was the case, for instance, withthe publication of the Commission Delegated Regulation(EU) 2023/2485, which made several amendments to the
Climate Delegated Act, both in terms of new activities andtechnical screening criteria.
If in 2021, first year of application of the legislation, companies had only to report the proportion of the turnover, op-erating expenditure (OpEx) and capital expenditure (CapEx)of taxonomy-eligible activities with respect to the objectives
relating to climate change – Climate change mitigation andClimate change adaptation16, in this new reporting year companies such as Brembo must also disclose the same quantitative indicators (KPIs) for the taxonomy-eligible economic
activities with respect to the other four environmental objectives defined by the ”Environmental Delegated Act” (Commission Delegated Regulation (EU) 2023/2486). As for 2022,
it is still mandatory to report the proportion of the turnover,
CapEx and OpEx of the taxonomy-aligned activities only withrespect to the objectives relating to climate change.

COMPLIANCE ASSESSMENT WITH THE REGULATIONAs of 2021, in accordance with the Regulation, Brembo discloses the information required associated with the proportion of the turnover, CapEx and OpEx related to taxonomy-eligible activities.
In 2023, the Brembo Group continued the analysis of its taxonomy-eligible economic activities in order to assess theireffective contribution to the aforementioned six objectives
and understand if and which of these can also be considered
to be taxonomy-aligned. Moreover, a mapping of any CapEx
and OpEx was made in relation with the purchase of products or services referring to taxonomy-eligible and/or taxonomy-aligned economic activities and to individual measuresenabling activities to maintain a low level of emissions.

ELIGIBILITY ANALYSISThe analysis resulted in the identification of the following economic activities performed by Brembo, associatedwith the climate change objectives:••

3.8 Manufacture of aluminium with reference to the
CapEx and OpEx attributable to the casting of aluminium performed by Brembo (Climate change mitigation
and Climate change adaptation Objectives);
3.9 Manufacture of iron and steel with reference to
the CapEx and OpEx attributable to cast iron casting
performed by Brembo (Climate change mitigation andClimate change adaptation Objectives);•

9.1 Close to market research, development and innovation with reference to the CapEx and OpEx attributable
to the research and development activity linked to experimental development projects of solutions and technologies which contribute to the reduction of greenhouse gas
emissions (Climate change mitigation Objective).

The activities identified, performed by Brembo at its sites, do
not generate a direct turnover for the Group. Moreover, ananalysis of any CapEx and OpEx was also made in relation
with the purchase of products or services referring to taxonomy-eligible economic activities and individual measuresenabling the activities to reduce their level of emissions17.

16 Taxonomy activities which refer to Climate change mitigation and Climate change adaptation are included in Annex I and II of the “Climate DelegatedAct”. Commission Delegated Regulation (EU) 2021/2139.
17 Annex I to the Commission Delegated Regulation (EU) 2021/2178, paragraph 1.1.2.2 (c).

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35

1. The Group

Based on this analysis, the following economic activities qualified as taxonomy-eligible with respect to the Taxonomy
objectives:

ACTIVITYOBJECTIVE

REFERENCE WITHIN BREMBO

5.1 Construction, extension
and operation of water collection,
treatment and supply systems• Climate change mitigation• Climate change adaptation

Costs relating to the maintenanceand extension of the water supply
or treatment systems within the Group’s
production plants

6.5. Transport by motorbikes,
passenger cars
and light commercial vehicles• Climate change mitigation climatici

Costs relating to the management
and maintenance of the company fleet

6.6. Freight transport services by road• Climate change mitigation

Costs for long-term lease of vansfor freight transport

7.1. Construction of new buildings• Climate change mitigation• Climate change adaptation• The transition to a circular economy(reference to activity 3.1)

Costs relating to the constructionof new buildings within the Group’s
production and sales hubs

7.2. Renovation of existing buildings• Climate change mitigation• Climate change adaptation• The transition to a circular economy(reference to activity 3.2)

Costs relating to the renovationof existing buildings within the Group’s
production and sales hubs

7.3. Installation, maintenanceand repair of energy efficiency
equipment• Climate change mitigation• Climate change adaptation

Costs relating to the installation andmaintenance of energy-efficient lighting
and new air-conditioning systems

7.5 Installation, maintenance and repair
of instruments and devices for measuring,
regulation and controlling energy
performance of buildings• Climate change mitigation• Climate change adaptation

Costs relating to the installationand maintenance of digital meters andsystems for measuring on a continuous
basis the energy performance of the
production lines and buildings

7.6 Installation, maintenance and repairof renewable energy technologies• Climate change mitigation• Climate change adaptation

Costs relating to the installation andmaintenance of photovoltaic plants

8.1. Data processing, hosting
and related activities:• Climate change mitigation• Climate change adaptation

Costs relating to server managementand data centre lease

2.3. Collection and transport
of non-hazardous and hazardous waste• The transition to a circular economy

Costs for the installation and maintenanceof waste collection and waste sorting
systems within the Group’s production sites

2.2 Urban waste water treatment• The sustainable use and protectionof water and marine resources

Costs for the installation and maintenanceof waste water collection and separation
systems within the Group’s production sites

36

Annual Sustainability Report 2023

1.8 The EU Taxonomy Regulation No. 2020/852

ALIGNMENT ANALYSISIn order to assess alignment with the climate change
mitigation and climate change adaptation objectives, foreach taxonomy-eligible activity identified analyses werethus carried out to check compliance with the substantial
contribution criteria and the “Do No Significant Harm” criteria by each objective.

ACTIVITY - 3.8 MANUFACTURE OF ALUMINIUM

Substantial contribution to climate change mitigation
With regard to the manufacture of aluminium, the criteria
for substantial contribution to climate change mitigation
require that the greenhouse gas emissions of the activity
not exceed 1.484 tCO2e per tonne of aluminium manufactured, the average carbon intensity for indirect greenhouse gas emissions not exceed 100 g CO2e/kWh andelectricity consumption in the manufacturing process notexceed 15.5 Wh/t Al.
According to the Regulation, until the 2025 reporting year
it is sufficient to comply with two of the above criteria to
consider the economic activity taxonomy-aligned. However, Brembo has decided to adopt the more stringent criterion starting in 2023, and to consider only activities thatmeet all three criteria, i.e. those carried out at the plants
in Mapello (Italy) and Escobedo (Mexico)18, to meet thesubstantial contribution criterion.
Do No Significant Harm (DNSH)
For the said activity, Annex I to the Climate Delegated Act provides for DNSH criteria with respect to other four objectives:•

Climate change adaptation: an analysis is to be performed to identify and assess vulnerability to chronic

•

•

•

and acute physical climate-related risks that have an
impact on the activity concerned. Brembo has carriedout an analysis of relevant physical risks at all its manufacturing plants, considering short-term (2023-2025)
and long-term (2030-2050) scenarios, on the basis of
IPPC RCP 8.5 scenario (“Fossil fuel-based development”). Accordingly, the criterion is considered to havebeen met.
The sustainable use and protection of water and marine resources: an analysis of environmental risks isrequired in order to achieve good water condition
and a water management and use plan. The criterion
is considered to have been met for all manufacturing
plants.
Pollution prevention and control: a ban is establishedon the use of certain substances deemed hazardous.
Also in light of the update applied in June 2023 and theensuing interpretative ambiguity, the Group deems it
appropriate to take a prudential approach and to consider this criterion not to have been met.
The protection and restoration of biodiversity and ecosystems: the criterion for this objective requires an assessment of environmental impact or equivalent examination. The criterion is thus considered to have been
met for all manufacturing plants.

18 The plants in Nanjing (China) and Ostrava (Czech Republic) were not considered taxonomy-aligned, despite meeting the criterion relating to tonnes ofCO2e per tonne manufactured and the criterion relating to electricity consumption in the manufacturing process.

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37

1. The GroupACTIVITY - 3.9 MANUFACTURE OF IRON AND STEEL

Substantial contribution to climate change mitigation
With regard to the manufacture of iron and steel, the criteria for substantial contribution to climate change mitigation require that emissions from the manufacturing
process relating to coke (excluding lignite coke) used in the
manufacturing process not exceed 0.144 tCO2e per tonneof product and that emissions from iron casting not exceed
0.299 tCO2e per tonne of product. Accordingly, the manufacture of iron and steel at the manufacturing plants in
Nanjing, Dabrowa, Escobedo and Homer meets the substantial contribution criteria.
Do No Significant Harm (DNSH)
For the said activity, Annex I to the Climate Delegated
Act provides for DNSH criteria with respect to other four
objectives:
•

•

•

•

Climate change adaptation: with regard to this activity as
well an analysis is to be performed to identify and assessvulnerability to chronic and acute physical climate-relat-

ed risks (listed in section II of the Appendix) that have an
impact on the activity concerned. In light of the analysisof the physical climate-related risks performed by Brembo, the criterion is considered to have been met.
The sustainable use and protection of water and marine
resources: an analysis of environmental risks is requiredin order to achieve good water condition and a water
management and use plan. The criterion is considered
to have been met for all manufacturing plants.
Pollution prevention and control: a ban is established on
the use of certain substances deemed hazardous. Also inlight of the update applied in June 2023 and the ensuinginterpretative ambiguity, the Group deems it appropriate
to take a prudential approach and to consider the activity as non-compliant with the DNSH criterion.
The protection and restoration of biodiversity and ecosystems: the criterion for this objective requires an assessment of environmental impact or equivalent examination. The criterion is thus considered to have been met
for all manufacturing plants.

ACTIVITY – 9.1 CLOSE TO MARKET RESEARCH, DEVELOPMENT AND INNOVATION

Substantial contribution to climate change mitigation
With regard to close to market Research, Development andInnovation, the substantial contribution criteria require thatthe activity research, develop or provide innovation for technologies, products or other solutions dedicated to one ormore economic activities for which the technical screening
criteria have not been defined in the Commission Delegated Regulation, and that enable these activities to meet therespective criteria for substantial contribution to climatechange mitigation. In the absence of sufficient elements topermit a full assessment of compliance with the criterion,
according to a conservative, prudential approach the Group
believes the activity is not aligned with the substantial contribution criteria.

••

Do No Significant Harm (DNSH)
For the said activity, Annex I to the Climate Delegated Act provides for DNSH criteria with respect to other five objectives:•

38

Climate change adaptation: with regard to this activity as
well an analysis is to be performed to identify and assess

Annual Sustainability Report 2023•

vulnerability to chronic and acute physical climate-related risks (listed in section II of the Appendix) that have an
impact on the activity concerned. In light of the analysisof the physical climate-related risks performed by Brembo, the criterion is considered to have been met.
The sustainable use and protection of water and marine
resources: for this activity, the potential risks for the goodcondition or good ecological potential of bodies of watermust be assessed and dealt with. The criterion is therefore considered to have been met.
The transition to a circular economy: for this activity, thepotential risks for circular economy objectives arisingfrom the technology, product or solution of another typeto which the research refers must have been assessedand dealt with. In the absence of sufficient elements topermit a full assessment of compliance with the criterion, according to a conservative, prudential approach theGroup believes this activity is not compliant with such a
DNSH criterion.
Pollution prevention and control: for this activity, all potential risks relating to a significant increase in polluting

1.8 The EU Taxonomy Regulation No. 2020/852•

dition or resilience of ecosystems or the state of preservation of habitats and species arising from the technology
or product subject to research must have been assessedand dealt with. In the absence of sufficient elements topermit a full assessment of compliance with the criterion, according to a conservative, prudential approach theGroup believes this activity is not compliant with such a
DNSH criterion.

emissions arising from the technology, product or solution must have been assessed and dealt with. In the absence of sufficient elements to permit a full assessmentof compliance with the criterion, according to a conservative, prudential approach the Group believes this activity
is not compliant with such a DNSH criterion.
The protection and restoration of biodiversity and ecosystems: for this activity, the potential risks to the good con-

ACTIVITY 5.1 CONSTRUCTION, EXTENSION AND OPERATION OF WATER COLLECTION, TREATMENT
AND SUPPLY SYSTEMS

Substantial contribution to climate change mitigation
The criteria for substantial contribution to climate change
mitigation require that specific energy performance criteria
have been met. As the Group does not have all the necessary
evidence relating to maintenance and extension of watersupply or treatment systems at its production or distribution
hubs, it has taken a prudential approach and considered thecriterion not to be met.
Do No Significant Harm (DNSH)
For the said activity, Annex I to the Climate Delegated Act provides for DNSH criteria with respect to other three objectives:•••

Climate change adaptation: with regard to this activity as
well an analysis is to be performed to identify and assessvulnerability to chronic and acute physical climate-related risks (listed in section II of the Appendix) that have an
impact on the activity concerned. In light of the analysis of
the physical climate-related risks performed by Brembo,
the criterion is considered to have been met.
The sustainable use and protection of water and marine
resources: for this activity, the potential risks for the goodcondition or good ecological potential of bodies of watermust be assessed and dealt with. The criterion is therefore considered to have been met.
The protection and restoration of biodiversity andecosystems: the criterion requires an assessment ofenvironmental impact or equivalent examination. All
the work sites at Group’s facilities comply with thiscriterion.

ACTIVITY 6.5. TRANSPORT BY MOTORBIKES, PASSENGER CARS AND LIGHT COMMERCIAL VEHICLES

Substantial contribution to climate change mitigation
The substantial contribution criteria for expenses incurred
for the vehicle fleet require that such vehicles belong to a
specific emission class that varies depending on the type of
vehicle. For the current reporting year, the Group believes
that the activity is consistent with the substantial contribution criteria solely for the fleet’s electric and hybrid vehicles.
Do No Significant Harm (DNSH)
For the said activity, Annex I to the Climate Delegated
Act provides for DNSH criteria with respect to other threeobjectives:•

Climate change adaptation: with regard to this activity•

as well an analysis is to be performed to identify andassess vulnerability to chronic and acute physical climate-related risks that have an impact on the activity
concerned. With regard to the investments undertaken
in 2023 in connection with the vehicle fleet, according
to a conservative, prudential approach, as the activity is
not directly performed by Brembo, and in the absence ofsufficient elements to permit a full assessment of compliance with the criterion, the Group believes the activity
not to be compliant with such a DNSH criterion.
The transition to a circular economy: this requires that vehicles possess certain characteristics of reusability and recyclability and that measures be taken to manage waste
during the use phase (maintenance) and end-of-life phase.

Annual Sustainability Report 2023

39

1. The Group•cles adhere to certain parameters relating to conformity,
type approval, emissions and efficiency. The vehicles of
the Group’s fleet meet this criterion, since the parameters and characteristics in question are required by theEuropean Union for all recently registered vehicles.

According to a conservative approach, in the absence ofsufficient elements to permit a full assessment of compliance with the criterion by suppliers, the Group believes
this activity is not compliant with such a DNSH criterion.
Pollution prevention and control: this requires that vehi-

ACTIVITY 6.6. FREIGHT TRANSPORT SERVICES BY ROAD

Substantial contribution to climate change mitigation
The substantial contribution criteria for expenses incurred
for freight transport vehicles require that such vehicles
belong to a specific emission class that varies dependingon the type of vehicle. For the current reporting year, theGroup believes that the activity is consistent with the substantial contribution criteria solely for the fleet’s electricand hybrid vehicles.

•

Do No Significant Harm (DNSH)
For the said activity, Annex I to the Climate Delegated Act
provides for DNSH criteria with respect to other three objectives:•

Climate change adaptation: with regard to this activity as well an analysis is to be performed to identify
and assess vulnerability to chronic and acute physicalclimate-related risks that have an impact on the activity
concerned. With regard to the investments undertaken
in 2023 in connection with the freight transport vehi-•cles, according to a conservative, prudential approach,and in the absence of sufficient elements to permit afull assessment of compliance with the criterion, theGroup believes the activity not to be compliant withsuch a DNSH criterion.
The transition to a circular economy: this requires thatvehicles possess certain characteristics of reusability
and recyclability and that measures be taken to manage waste during the use phase (maintenance) and
end-of-life phase. According to a conservative approach,in the absence of sufficient elements to permit a full assessment of compliance with the criterion by suppliers,
the Group believes this activity is not compliant withsuch a DNSH criterion.
Pollution prevention and control: this requires that vehicles adhere to certain parameters relating to conformity, type approval, emissions and efficiency. The vehiclesof the Group’s fleet meet this criterion, since the parameters and characteristics in question are required by theEuropean Union for all recently registered vehicles.

ACTIVITY 7.1. CONSTRUCTION OF NEW BUILDINGS

Substantial contribution to climate change mitigation
The criteria for substantial contribution to climate change
mitigation require that specific energy performance criteria have been met. Since the Group does not have all thenecessary evidence relating to the work to construct the
new buildings at its production and sales hubs, according
to a prudential approach for activities not directly performed by the Group, the criterion has been considered not
to have been met.

40

Annual Sustainability Report 2023

Do No Significant Harm (DNSH)
For the said activity, Annex II to the Climate Delegated
Act provides for DNSH criteria with respect to other five
objectives:•

Climate change adaptation: with regard to this activity as well an analysis is to be performed to identify
and assess vulnerability to chronic and acute physicalclimate-related risks that have an impact on the activity
concerned. The criterion has been met due to initiatives
at the Group’s plants under analysis.

1.8 The EU Taxonomy Regulation No. 2020/852••

The sustainable use and protection of water and marine resources: this requires specific techniques relating
to certain plumbing systems, in respect of which theGroup believes it does not have complete visibility for
all plants included in the scope. Accordingly, the Groupdeems it appropriate to adopt a prudential approachand consider the activity not to be compliant with sucha DNSH criterion.
The transition to a circular economy: this requires thatat least 70% of waste generated during construction
and demolition at a work site be prepared for recovery. Since the Group does not have full visibility of allactive work sites at plants not directly managed by
Brembo, it deems it appropriate to adopt a prudential••

approach and consider the activity not compliant withsuch a DNSH criterion.
Pollution prevention and control: a ban is establishedon the use of certain substances deemed hazardous.
Also in light of the update applied in June 2023 and theensuing interpretative ambiguity, the Group deems it
appropriate to take a prudential approach and to consider the activity as non-compliant with the DNSH criterion.
The protection and restoration of biodiversity and ecosystems: the criterion requires an assessment of environmental impact or equivalent examination. All thework sites at Group’s facilities comply with this criterion.

ACTIVITY 7.2. RENOVATION OF EXISTING BUILDINGS

Substantial contribution to climate change mitigation
The criteria for substantial contribution to climate change
mitigation require that specific energy performance criteria have been met. Since the Group does not have all thenecessary evidence relating to the work to construct the
new buildings at its production and sales hubs, according
to a prudential approach, the criterion has been considered
not to have been met.

•

Do No Significant Harm (DNSH)
For the said activity, Annex II of the Climate Delegated
Act provides for DNSH criteria with respect to other four
objectives:•••

Climate change adaptation: with regard to this activity as well an analysis is to be performed to identify
and assess vulnerability to chronic and acute physicalclimate-related risks that have an impact on the activity
concerned. The criterion has been met due to initiatives
at the Group’s plants under analysis.
The sustainable use and protection of water and marine resources: with regard to this objective, the criterion requires specific techniques relating to certain
plumbing systems, in respect of which the Group believes it does not have complete visibility for all plants•

included in the scope. Accordingly, the Group deems
it appropriate to adopt a prudential approach andconsider the activity not to be compliant with such a
DNSH criterion.
The transition to a circular economy: with regard to
this objective, the criterion requires that at least 70%
of waste generated during construction and demolition at a work site be prepared for recovery. Since theGroup does not have full visibility of all active work sites
at plants not directly managed by Brembo, the Groupdeems it appropriate to adopt a prudential approachand consider the activity not compliant with such a
DNSH criterion.
Pollution prevention and control: a ban is establishedon the use of certain substances deemed hazardous. Also in light of the update applied in June 2023
and the ensuing interpretative ambiguity, the Groupdeems it appropriate to take a prudential approachand to consider the activity as non-compliant with the
DNSH criterion.
The protection and restoration of biodiversity and ecosystems: the criterion for this objective requires an assessment of environmental impact or equivalent examination. All the work sites at Group’s facilities comply
with this criterion.

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41

1. The GroupACTIVITY 7.3. INSTALLATION, MAINTENANCE AND REPAIR OF ENERGY EFFICIENCY EQUIPMENT

Substantial contribution to climate change mitigation
With regard to expenses incurred for the installation andmaintenance of energy-efficient lighting and new air-conditioning systems, the activity meets the substantial contribution criteria as it is included in the list of initiatives described.
•
Do No Significant Harm (DNSH)
For the said activity, Annex I to the Climate Delegated Act
provides for DNSH criteria with respect to other two objectives:•

Climate change adaptation: with regard to this activity

as well an analysis is to be performed to identify andassess vulnerability to chronic and acute physical climate-related risks that have an impact on the activity
concerned. The criterion has been met due to initiatives
at the Group’s plants under analysis.
Pollution prevention and control: a ban is establishedon the use of certain substances deemed hazardous. Also in light of the update applied in June 2023
and the ensuing interpretative ambiguity, the Groupdeems it appropriate to take a prudential approachand to consider the activity as non-compliant with the
DNSH criterion.

ACTIVITY 7.5 INSTALLATION, MAINTENANCE AND REPAIR OF INSTRUMENTS AND DEVICES
FOR MEASURING, REGULATION AND CONTROLLING ENERGY PERFORMANCE OF BUILDINGS

Substantial contribution to climate change mitigation
With regard to the expenses incurred for digital meters andenergy performance measurement systems, the activity
meets the substantial contribution criteria as it is includedin the list of initiatives described in the substantial contribution section.

Do No Significant Harm (DNSH)
The only one DNSH criterion provided for by the Regulation
with respect to the activity 7.5 is that relating to the climatechange adaptation objective. With regard to this objective,
the criterion has been met due to initiatives at the Group’s
plants under analysis.

ACTIVITY 7.6 INSTALLATION, MAINTENANCE AND REPAIR OF RENEWABLE ENERGY TECHNOLOGIES

Substantial contribution to climate change mitigation
With regard to the expenses incurred for the installationof photovoltaic panels, the activity meets the substantial
contribution criteria as it is included in the list of initiatives
described in the substantial contribution section.

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Annual Sustainability Report 2023

Do No Significant Harm (DNSH)
The only one DNSH criterion provided for by the Regulation
with respect to the activity 7.6 is that relating to the climatechange adaptation objective. With regard to this objective,
the criterion has been met due to initiatives at the Group’s
plants under analysis.

1.8 The EU Taxonomy Regulation No. 2020/852

ACTIVITY 8.1. DATA PROCESSING, HOSTING AND RELATED ACTIVITIES

Substantial contribution to climate change mitigation
The criteria for substantial contribution to climate change
mitigation require that specific energy efficiency criteria
have been met by data centres, as verified in a third-party audit. As the Group does not have all the necessary evidence relating to data centres at its production and sales
hubs, it has taken a prudential approach and considered
the criterion not to be met.

Climate change adaptation: with regard to this activity as well an analysis is to be performed to identify

and assess vulnerability to chronic and acute physicalclimate-related risks that have an impact on the activity
concerned. The criterion has been met for data centres
at the Group’s plants under analysis.
The sustainable use and protection of water and marine resources: for this activity, the potential risks for thegood condition or good ecological potential of bodies ofwater must be assessed and dealt with. The criterion istherefore considered to have been met.
The transition to a circular economy: For this objective,
the criterion requires that electronic devices and thesubstances they contain satisfy a series of technicalspecifications. In this regard, the Group deems it appropriate to adopt a prudential approach and considers
the criterion not to be met, as it does not have all thenecessary information.

Lastly, it should be noted that for the activity 5.1 Construction, extension and operation of water collection, treatment
and supply systems no alignment analysis was performed
since it is not required in the first year after the Environmental Delegated Act entered into force.

Although several DNSH criteria are met for some activities,
the criterion for substantial contribution to climate change
adaptation, which is the same for all taxonomy-eligible activities, requires that the adaptation solutions with respect
to the climate-related risks identified are identified.

Since several among taxonomy-eligible activities fall within
the scope of both the climate-related objectives (specifically: 3.8, 3.9, 7.1, 7.2, 7.5, 7.6, and 8.1), the Group also performed the alignment analysis with respect to the climatechange adaptation objective, as provided for in June 2023.
Moreover, it should be noted that, contrary to the above
mentioned activities, activities 6.5 and 6.6 are not deemed
as taxonomy-eligible19 also for the climate change adaptation objective because no climate risk analysis was carriedout in relation to them.

These adaptation solutions must comply with specific requirements that the Group believes it has not been implemented within the terms set forth by the Regulation. Activities proved not to be aligned with respect to the climatechange adaptation objective.

Do No Significant Harm (DNSH)
For the said activity, Annex I to the Climate Delegated Act
provides for DNSH criteria with respect to other three objectives:•••

Lastly, it should be noted that for the activities 2.2 Urban
waste water treatment and 2.3 Collection and transport ofnon-hazardous and hazardous waste no alignment analysis was made since it is not required in the first year after
the Environmental Delegated Act entered into force.

19 In line with the indications of the FAQ 18 of the October 2023 Commission Notice

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43

1. The GroupMINIMUM SAFEGUARDS

Lastly, Brembo analysed compliance with the minimum
safeguards, in accordance with the provisions of Article 18 of
the Regulation. In particular, the OECD Guidelines for Multinational Enterprises, the United Nations Guiding Principles
on Business and Human Rights and the principles and rights
set out in the eight core conventions identified in the International Labour Organisation (ILO)'s Declaration on Fundamental Principles and Rights at Work and the International
Charter of Human Rights were taken into consideration.

•

the policies and codes of conduct published on theGroup’s website and whose provisions apply to all employees of all the Group Companies and all parties acting for achieving the Group’s objectives; the Anti-bribery Code of Conduct, Brembo’s Code of Basic Working
Conditions, Brembo’s Policy on Non Discrimination andDiversity, Supplier Code of Conduct, Brembo General
Terms and Conditions of Purchase Direct Materials andServices. the above mentioned codes and policies aredescribed in detail in paragraph 3.2 “Responsible business management system” of the chapter “Company
structure”;
grievance mechanisms accessible to stakeholders
through the Group's website.

Specifically, nine categories were assessed: human rights
policies, human rights due diligence and risk assessment,
human rights impact management, grievance mechanisms, consumer interests, anti-corruption, competition
and taxation.

•

Brembo ensures that the topics relating to minimum safeguards are dealt with through the adoption of specific tools
such as the company policies, guidelines and organisational and operational mechanisms, and in particular:

Following this analysis, the Group verified that it had implemented all the safeguards provided for in Article 18 of
the Regulation, while acknowledging the need to formalisesome specific policy statements to ensure full compliancewith the requirements of the OECD Guidelines and UN
Guiding Principles.

•

•

•

•

•

44

the Group’s Code of Ethics, whose provisions apply to all
employees of all the Group Companies and all parties
acting for achieving the Group’s objectives;the 231 Models of the Group Companies and whistleblowing procedures for reporting any breaches of theCode and Models;
diversity policies for the Governing Body’s composition
aimed at ensuring an optimal combination of skills andprofessional background among the members of theBoard of Directors not only with regard to gender, butalso experience, professionalism, integrity, independence, age and other relevant aspects, as provided for by
applicable laws;
the Remuneration policy and the related report published annually, as described in greater detail in paragraph “Remuneration policies” of the section “Company
structure”;
the disclosure on issues relating to human rights, aswell as gender diversity and fundamental labour rights
in the Group’s Disclosure of Non-Financial Information(for greater details, see the sections “People” and “TheSupply Chain”);

Annual Sustainability Report 2023

For further details concerning the measures relating tominimum safeguards, see in particular the chapter “Company structure”, “The supply chain” and “People”, in which
additional information is provided regarding the Group's
measures and results in relation to the issues of humanrights and the fight against corruption.
In cases of verification of the minimum safeguards for
products and services purchased by the Group and originating in taxonomy-eligible economic activities (specifically, for activities 5.1, 6.5, 6.6, 7.1, 7.2, 7.3, 7.5, 7.6 and 8.1), companies are required to expand the scope of analysis to the
supply chain of eligible products and services. In this regard,
Brembo has prepared a set of procedures defined to ensuretransparency and observance of the principles laid down in
its Code of Ethics throughout its supply chain, as describedin the chapter “The supply chain”. However, according to aconservative, prudential approach, Brembo does not believe that it has sufficient information to ensure that current supply chain management practices ensure full alignment of its suppliers with Article 8 of the Regulation.

1.8 The EU Taxonomy Regulation No. 2020/852

Accounting policy and contextual information
In accordance with the indications of Annex I to the Disclosures Delegated Act20, the Group calculated the KPIs related to Turnover, CapEx and OpEx for activities identified
as taxonomy-eligible, assessing their specific weight withreference to the respective consolidated amounts.

•
•
•
•
•

Specifically, here below are illustrated the methodologicalapproaches used to calculate each KPI, providing a general
overview for both denominators and numerators.

To determine the value of these items, Brembo conducteda thorough analysis of the Group’s chart of accounts. Accordingly, a broad investigation was conducted to isolate
all items attributable to the above components. In particular, with regard to “any other direct expenditures relating
to the day-to-day servicing of assets of property, plant andequipment”, plant cleaning expenses were taken into consideration22.

Turnover KPIThe Turnover denominator was determined through ananalysis of the Group’s statutory chart of accounts for 2023.
In particular, the consolidated item concerning the Group’s
revenues was considered. To this end, in accordance withparagraph 1.1.1 of Annex 1 to the Disclosures Delegated
Act, the revenues of the Group's core business were identified by considering the line item “Revenue from contracts
with customers”. These revenues represent amounts derived from the sale of products and the provision of services after deducting sales rebates21 and value added tax
and other taxes directly linked to turnover. Accordingly, theGroup’s Turnover for 2023 was €3,849,220 thousand, as
shown in the consolidated financial statements (Revenue
from contracts with customers, note No. 20 to the consolidated annual financial report).
With regard to calculation of the numerator, in accordancewith the requirements of Annex 1 to the Disclosures Delegated Act, as the Group has not identified any taxonomy-eligible activities according to the criteria laid down in theRegulation, it presented a numerator value of 0 for 2023.

For the cost of personnel involved in the above activities, as
it was not possible to obtain the related numbers directlyfrom an analysis of the chart of accounts, cost centres wereanalysed through analytical accounting. The value resulting
from this analysis for the denominator is €260,030 thousand.
The approach used for the numerator involved a moredetailed and broader analysis than that applied to thedenominator. The numbers associated with the identified taxonomy-eligible activities were extracted from the
management system of Group companies, ensuring correspondence between the items of the consolidated chart ofaccounts used to calculate the denominator.
In particular, Brembo identified the following taxonomy-eligible activities:••

OpEx KPI
Paragraph 1.1.3.1 of Annex 1 to the Disclosures Delegated Act states that the denominator of the OpEx must be
calculated by identifying specific non-capitalised operating
expenses relating to:

Research and Development
Building renovation measures
Short-term lease
Maintenance and repair
Any other direct expenditures relating to the day-to-day
servicing of assets of property, plant and equipment.

••

3.8 Manufacture of aluminium (Climate change mitigation)
3.9 Manufacture of iron and steel (Climate change mitigation)
5.1 Construction, extension and operation of water collection, treatment and supply systems (Climate change
mitigation)
6.5 Transport by motorbikes, passenger cars and lightcommercial vehicles (Climate change mitigation)

20 Commission Delegated Regulation (EU) 2021/2178.
21 As described by IAS 1, paragraph 82, and in the definition of “net turnover” of the Directive 2013/34/EU.
22 As suggested by the FAQ 12 of the October 2022 Commission Notice (2022/C 385/01).

Annual Sustainability Report 2023

45

1. The Group

•
•
•
•

6.6 Freight transport services by road (Climate change
mitigation)
7.3 Installation, maintenance and repair of energy efficiency equipment (Climate change mitigation)
7.6 Installation, maintenance and repair of renewableenergy technologies (Climate change mitigation)
9.1 Close to market research, development and innovation (Climate change mitigation).

With regard to paragraph 1.1.3.2(C)23, the Group identified
operating expenses relating to other activities, such as therenovation of buildings, management of the vehicle fleet,energy efficiency operations, data centre management
activities and renewable energy technologies. The main
costs considered were maintenance costs and short-termlease costs.

CapEx KPI
Paragraph 1.1.2.1 of Annex I to the Disclosures Delegated
Act provides that the CapEx denominator shall cover additions to tangible and intangible assets during the financial
year considered before depreciation, amortisation and any
re-measurements, including those resulting from revaluations and impairments, for the relevant financial year andexcluding fair value changes. The denominator shall also
cover additions to tangible and intangible assets resulting
from business combinations.

These investments have been broken down by type of
asset, distinguishing between property, plant and equipment, intangible assets and rights of use assets (according
to IFRS 16) with respect to the increases that occurred in
2023, resulting in the following specific values:•••

With regard to the numerator of the KPI, the Group conducted a detailed analysis of changes in assets to identify
the components associated with assets deemed eligible.
In particular, as the Group is present in various territories,
the approach taken involved engaging all the administrative and accounting personnel of all plants and legal
entities within the scope of consolidation. Detailed numbers were then obtained by extracting them from management systems.
The activities identified as source of investments in 2023
included:•••

For the denominator, the Group therefore took into accountthe increases relating to intangible assets, property, plantand equipment, and right of use assets. This data was obtained from tables relating to changes in assets, isolating
only the “acquisitions” row (Property, plant and equipment
and Intangible assets, presented in notes 1 and 2 of theconsolidated annual financial report)24.
The Group’s investments, considered for the denominator,
thus amount to €433,548 thousand, as indicated in the explanatory notes to the consolidated financial statements.

Investments in intangible assets of €43,733 thousand;
Investments in property, plant and equipment of€369,084 thousand;Increases of leased assets of 20,731 thousand euro.

•
•

•
•
•

2.2 Urban waste water treatment (The sustainable use
and protection of water and marine resources)
2.3 Collection and transport of non-hazardous and hazardous waste (The transition to a circular economy)
3.8 Manufacture of aluminium (Climate change mitigation)
3.9 Manufacture of iron and steel (Climate change mitigation)
5.1 Construction, extension and operation of watercollection, treatment and supply systems (Climatechange mitigation)
6.5 Transport by motorbikes, passenger cars and lightcommercial vehicles (Climate change mitigation)
7.1 Construction of new buildings (Climate change
mitigation)
7.2 Renovation of existing buildings (Climate change
mitigation)

23 Paragraph 1.1.3.2(C) of the Commission Delegated Regulation (EU) 2021/2178: OpEx related to assets or processes associated with Taxonomy-aligned (Taxonomy-eligible) economic activities, including training and other human resources adaptation needs, and direct non-capitalised costs that represent research anddevelopment..
24 As suggested by paragraph 1.1.2.1, the following standards were used as reference: • IAS 16 Property, Plant and Equipment • IAS 38 Intangible Assets •IFRS 16 Leases.

46

Annual Sustainability Report 2023

1.8 The EU Taxonomy Regulation No. 2020/852•

7.3 Installation, maintenance and repair of energy efficiency equipment (Climate change mitigation)• 7.5 Installation, maintenance and repair of instruments and devices for measuring, regulation andcontrolling energy performance of buildings (Climatechange mitigation)• 7.6 Installation, maintenance and repair of renewableenergy technologies (Climate change mitigation)• 8.1 Data processing, hosting and related activities (Climate change mitigation).
With regard to paragraph 1.1.2.1(C)25, capitalised expenses were identified relating to other activities, suchas the construction and renovation of buildings, vehicle
fleet, energy efficiency operations, data processing andrenewable energy technologies. In parallel, investments
in tangible (property, plant and equipment) and intangible assets (research and development) were taken into
account.

Comparison with the previous year
As required by the Disclosures Delegated Act, 2023 is thefirst fiscal year in which non-financial undertakings within the scope of application must provide comparisonswith the previous year.
Please refer to the KPI summary tables for the details of
the changes in the numbers and percentages of indica-

tors required by the regulations.
As required by point 1.2.1 “Accounting policy” of the Disclosures Delegated Act, “where the application of any calculations has changed since the previous reporting period, non-financial undertakings shall explain why thosechanges result in more reliable and relevant informationand provide for restated comparative figures”.
Accordingly, it is specified that the change in KPIs compared to 2022 is to be associated with the inclusion of
additional activities beyond those considered in the previous financial year, as well as with a change in the accounting approach taken to deriving numbers and thereporting of KPIs. Specifically, in order to be more consistent with the regulatory requirements for calculating
the OpEx, the analysis carried out this year led to the inclusion of certain items relating to specific maintenanceaccounts. In addition, accounts relating to auxiliary materials were excluded from the calculation, as they are notassociable with the categories mentioned in Annex 1-5.
In particular, the assessment as to whether to include
or exclude given line items of the chart of accounts wasmade in reference to the specific categories relating to
the Disclosures Delegated Act.
Information concerning the various assets, as presented
in the previous fiscal period, is presented below.

INITIAL VALUE OPEX FY 2022
CODE

ACTIVITYINITIAL VALUE FY 2022

INITIAL (%) VALUE FY 2022

3.8

Manufacture of aluminium

12,8336.81%

3.9

Manufacture of iron and steel

16,3998.71%

7.6

Installation, maintenance and repairof renewable energy technologies

3,055

1.86%

9.1

Close to market research, development
and innovation

4,701

2.50%

37,43819.87%

Total

25 Paragraph 1.1.2.1(C) of the Commission Delegated Regulation (EU) 2021/2178: CapEx related to the purchase of output from Taxonomy-aligned economic
activities and individual measures enabling the target activities to become low-carbon or to lead to greenhouse gas reductions, as well as individual
measures for the renovation of buildings identified in the delegated acts adopted pursuant to Article 10(3), Article 11(3), Article 12(2), Article 13(2), Article
14(2) and Article 15(2) of Regulation (EU) 2020/852 and provided that such measures are implemented and operational within 18 months.

Annual Sustainability Report 2023

47

1. The GroupPROPORTION OF TURNOVER FROM PRODUCTS OR SERVICES ASSOCIATED WITH TAXONOMY-ALIGNEDAND TAXONOMY-ELIGIBLE ECONOMIC ACTIVITIES – DISCLOSURE COVERING YEAR 2023 (DATA IN € THOUSAND)PROPORTION OF
TURNOVER (4)

CLIMATE CHANGEMITIGATION (5) %CLIMATE CHANGE
ADAPTATION (6) %WATER AND MARINERESOURCES (7) %POLLUTION (8) %CIRCULAR ECONOMY (9) %BIODIVERSITY ANDECOSYSTEMS (10) %€ thousand%

Y; N; N/EL %Y; N; N/EL %Y; N; N/EL %Y; N; N/EL %Y; N; N/EL %Y; N; N/EL %Turnover ofenvironmentally
sustainable activities(Taxonomy-aligned) (A.1)

0.00

0.00%

A.2 Taxonomy-eligible,
but not environmentally
sustainable activities(not Taxonomy-aligned
activities)

0.00

0.00%

Turnover of Taxonomyeligible, but notenvironmentally
sustainable activities(not Taxonomy-aligned
activities) (A.2)

0.00

0.00%

Total (A.1 + A.2)

0.00

0.00%

Turnover of Taxonomynon-eligible activities (B)3,849,220

100.00%Total (A + B)

3,849,202

100.00%ECONOMIC ACTIVITIES (1)CODE(S) (2)

ABSOLUTE TURNOVER (3)SUBSTANTIAL CONTRIBUTION CRITERIA

A. TAXONOMY-ELIGIBLE ACTIVITIES

A.1 Environmentally
sustainable activities(Taxonomy-aligned)

B. TAXONOMY-NON-ELIGIBLE ACTIVITIESKEY TAXONOMY TABLESUSBSTANTIAL CONTRIBUTION CRITERIA“DO NO SIGNIFICANTLY HARM” CRITERIAY

Taxonomy-eligible and Taxonomy-aligned activity with the objective

The activity is compliant with the DNHS criteria

N

Taxonomy-eligible, but not Taxonomy-aligned activity with the objective

The activity is not compliant with the DNHS criteria

N/EL

Taxonomy-non-eligible for the objective

CATEGORY

E

Enabling

T

Transitional

48

Annual Sustainability Report 2023

1.8 The EU Taxonomy Regulation No. 2020/852

PROPORTION OF TURNOVER /TOTAL TURNOVER

WATER AND MARINERESOURCES (13)POLLUTION (14)CIRCULAR ECONOMY (15)BIODIVERSITY ANDECOSYSTEMS (16)MINIMUM SAFEGUARDS(17)

PROPORTION OF
TAXONOMY-ALIGNEDTURNOVER, YEAR 2022 (18)

CATEGORY (ENABLING
ACTIVITY) (19)

CATEGORY (TRANSITIONAL
ACTIVITY) (20)

Y/N

Y/N

Y/N

Y/N

Y/N

Y/N

Percent

E

T

TAXONOMY-ELIGIBLEPER OBJECTIVE

CLIMATE CHANGE
ADAPTATION (12)Y/N

TAXONOMY-ALIGNEDPER OBJECTIVE

CLIMATE CHANGEMITIGATION (11)DNSH CRITERIA (“DOES NOT SIGNIFICANTLY HARM”)

CCM26

0.00%

0.00%

CCA

0.00%

0.00%

27

0.00%

0.00%

29

0.00%

0.00%

PPC

30

0.00%

0.00%

31

0.00%

0.00%

WTR
CE

BIO

28

Abc26 27 28 29 30 31

26
27
28
29
30
31

CCM: Climate change mitigation.
CCA: Climate change adaptation.
WTR: Water and marine resources.
CE: Circular economy.
PPC: Pollution.
BIO: Biodiversity and ecosystems.

Annual Sustainability Report 2023

49

1. The GroupPROPORTION OF CAPEX FROM PRODUCTS OR SERVICES ASSOCIATED WITH TAXONOMY-ALIGNEDECONOMIC ACTIVITIES – DISCLOSURE COVERING YEAR 2023 (€ THOUSAND)

BIODIVERSITY ANDECOSYSTEMS (10) %Y; N; N/EL %PROPORTION
OF CAPEX (4) %CLIMATE CHANGEMITIGATION (5) %Y; N; N/EL %A.1 Environmentally sustainable activities (Taxonomy-aligned)

0.00

0.00%

CapEx of environmentally sustainable activities(Taxonomy-aligned) (A.1)

0.00

0.00%

58.4

0.01%

N/EL

N/EL

Y

CLIMATE CHANGE
ADAPTATION (6) %ABSOLUTE CAPEX (3)%CODE(S) (2)€ thousand

ECONOMIC ACTIVITIES (1)POLLUTION (8) %Y; N; N/EL % Y; N; N/EL % Y; N; N/EL % Y; N; N/EL %WATER AND MARINERESOURCES (7) %CIRCULAR ECONOMY (9) %SUBSTANTIAL CONTRIBUTION CRITERIA

A. TAXONOMY-ELIGIBLE ACTIVITIESof which enablingof which transitional
A.2 Taxonomy-eligible, but not environmentally
sustainable activities (not Taxonomy-aligned
activities)
Urban waste water treatment
Collection and transport of non-hazardousand hazardous waste

2.2 WTR

N/EL

N/EL

N/EL
N/EL

2.3 CE

82.4

0.02%

N/EL

N/EL

N/EL

Y

N/EL

Manufacture of aluminium

3.8 CCM/ 3.8 CCA

154.94

0.04%

Y

Y

N/EL

N/EL

N/EL

N/EL

Manufacture of iron and steel

3.9 CCM / 3.9 CCA

2,780.97

0.64%

Y

Y

N/EL

N/EL

N/EL

N/EL

Construction, extension and operation of watercollection, treatment and supply systems

5.1 CCM/ 5.1 CCA

174.64

0.04%

Y

Y

N/EL

N/EL

N/EL

N/EL

Transport by motorbikes, passenger cars
and light commercial vehicles

6.5 CCM

18.11

0.00%

Y

N/EL

N/EL

N/EL

N/EL

N/EL

Construction of new buildings

7.1 CCM/ 7.1 CCA /3.1 CE

1,500.29

0.35%

Y

Y

N/EL

Y

N/EL

N/EL

Renovation of existing buildings

7.2 CCM/ 7.22 CCA/ 3.2 CE

1,913.66

0.44%

Y

Y

N/EL

Y

N/EL

N/EL

Installation, maintenance and repairof energy efficiency equipment

7.3 CCM/ 7.3 CCA /3.3 CE

129.35

0.03%

Y

Y

N/EL

Y

N/EL

N/EL

Installation, maintenance and repair
of instruments and devices for measuring,
regulation and controlling energy
performance of buildings

7.5 CCM / 7.5 CCA

95.64

0.02%

Y

Y

N/EL

N/EL

N/EL

N/EL

Installation, maintenance and repairof renewable energy technologies

7.6 CCM / 7.6 CCA

516.80

0.12%

Y

Y

N/EL

N/EL

N/EL

N/EL

Data processing, hosting and related activities

8.1 CCM / 8.1 CCA

12.55

0.00%

Y

Y

N/EL

N/EL

N/EL

N/EL

9.1 CCM

0.00

0.00%

Y

N/EL

N/EL

N/EL

N/EL

N/EL

Close to market research, development
and innovation
CapEx of Taxonomy-eligible, but notenvironmentally sustainable activities(not Taxonomy-aligned activities) (A.2)

7,437.75

1.72%

Total (A.1 + A.2)

7,437.75

1.72%

B. TAXONOMY-NON-ELIGIBLE ACTIVITIESCapEx of Taxonomy-non-eligible activities (B)426,11098.28%

Total (A + B)

433,548100.00%50

Annual Sustainability Report 2023

WATER AND MARINERESOURCES (13)POLLUTION (14)CIRCULAR ECONOMY (15)BIODIVERSITY ANDECOSYSTEMS (16)MINIMUM
SAFEGUARDS (17)PROPORTION OF
TAXONOMY-ALIGNED (A.1)
OR ELIGIBLE (A.2) CAPEX,YEAR 2022 (18)

CATEGORY (ENABLING
ACTIVITY) (19)
CATEGORY (TRANSITIONAL
ACTIVITY) (20)

Y/N
Y/N
Y/N
Y/N
Y/N
Y/N
Percent
E
T

0%

0.00%

TAXONOMY-ELIGIBLEPER OBJECTIVE

CLIMATE CHANGE
ADAPTATION (12)Y/N
TAXONOMY-ALIGNEDPER OBJECTIVE

CLIMATE CHANGEMITIGATION (11)

1.8 The EU Taxonomy Regulation No. 2020/852

PROPORTION OF CAPEX /TOTAL CAPEXDNSH CRITERIA (“DOES NOT SIGNIFICANTLY HARM”)

CCM
0.00%
1.69%

CCA
0.00%
1.68%

WTR
0.00%
0.01%

CE
0.00%
0.81%

PPC
0.00%
0.00%

BIO
0.00%
0.00%

0.00%

0.21%
0.00%

0.23%

0.00%

0.00%

0.00%

0.00%

0.00%

0.00%

0.00%

0.00%

0.03%

0.47%

0.47%

Annual Sustainability Report 2023

51

1. The GroupPROPORTION OF OPEX FROM PRODUCTS OR SERVICES ASSOCIATED WITH TAXONOMY-ALIGNEDECONOMIC ACTIVITIES – DISCLOSURE COVERING YEAR 2023 (DATA IN € THOUSAND)

0.00

0.00%

BIODIVERSITY ANDECOSYSTEMS (10) %OpEx of environmentally sustainable activities(Taxonomy-aligned) (A.1)

POLLUTION (9) %0%

CIRCULAR ECONOMY (8) %0

WATER AND MARINERESOURCES (7) %A.1 Environmentally sustainable activities(Taxonomy-aligned)

CLIMATE CHANGE
ADAPTATION (6) %%CLIMATE CHANGEMITIGATION (5) %PROPORTION
OF OPEX (4) %€ thousand

ECONOMIC ACTIVITIES (1)CODE(S) (2)

ABSOLUTE OPEX (3)SUBSTANTIAL CONTRIBUTION CRITERIA

Y; N; N/EL % Y; N; N/EL % Y; N; N/EL % Y; N; N/EL % Y; N; N/EL % Y; N; N/EL %A. TAXONOMY-ELIGIBLE ACTIVITIESof which enablingof which transitional
A.2 Taxonomy-eligible, but notenvironmentally sustainable activities(not Taxonomy-aligned activities)
Manufacture of aluminium

3.8 CCM/
3.8 CCA

1,110.75

0.43%

Y

Y

N/EL

N/EL

N/EL

N/EL

Manufacture of iron and steel

3.9 CCM /3.9 CCA

11,300.50

4.35%

Y

Y

N/EL

N/EL

N/EL

N/EL

Construction, extension and operation of watercollection, treatment and supply systems

5.1 CCM /5.1 CCA138.55

0.05%

Y

Y

N/EL

N/EL

N/EL

N/EL

Transport by motorbikes, passenger cars
and light commercial vehicles

6.5 CCM211.16

0.08%

Y

N/EL

N/EL

N/EL

N/EL

N/EL

Freight transport services by road

6.6 CCM

74.19

0.03%

Y

N/EL

N/EL

N/EL

N/EL

N/EL

Installation, maintenance and repairof energy efficiency equipment

7.3 CCM /7.3 CCA /3.3 CE

44.58

0.02%

Y

Y

N/EL

Y

N/EL

N/EL

Installation, maintenance and repairof renewable energy technologies

7.6 CCM /7.6 CCA

3.71

0.00%

Y

Y

N/EL

N/EL

N/EL

N/EL

Close to market research, development
and innovation

9.1 CCM3,832.56

1.47%

Y

N/EL

N/EL

N/EL

N/EL

N/EL

OpEx of Taxonomy-eligible, but notenvironmentally sustainable activities(not Taxonomy-aligned activities) (A.2)

16,716.01

6.43%

TOTAL (A.1 + A.2)

16,716.01

6.43%

OpEx of Taxonomy-non-eligible activities (B)243,31493.57%

Total (A + B)

260,030

100%

B. TAXONOMY-NON-ELIGIBLE ACTIVITIES

32 The figure reported (9.05%) does not match with the figure reported in the previous fiscal year. For further details, please refer to the final paragraph “Comparison with the previous year”.

52

Annual Sustainability Report 2023

WATER AND MARINERESOURCES (13)CIRCULAR ECONOMY (14)POLLUTION (15)BIODIVERSITY ANDECOSYSTEMS (16)MINIMUM
SAFEGUARDS (17)PROPORTION OF
TAXONOMY-ALIGNED(A.1) OR -ELIGIBLE (A.2)
OPEX, YEAR 2022 (18)

CATEGORY (ENABLING
ACTIVITY) (19)
CATEGORY(TRANSITIONAL
ACTIVITY) (20)

Y/N
Y/N
Y/N
Y/N
Y/N
Y/N
Percent
E
T

0

0.00%

TAXONOMY-ELIGIBLEPER OBJECTIVE

CLIMATE CHANGE
ADAPTATION (12)Y/N
TAXONOMY-ALIGNEDPER OBJECTIVE

CLIMATE CHANGEMITIGATION (11)

1.8 The EU Taxonomy Regulation No. 2020/852

PROPORTION OF OPEX /TOTAL OPEXDNSH CRITERIA (“DOES NOT SIGNIFICANTLY HARM”)

CCM
0.00%
6.43%

CCA
0.00%
6.32%

WTR
0.00%
0.00%

CE
0.00%
0.00%

PPC
0.00%
0.00%

BIO
0.00%
0.00%

2.13%

3.28%

0.00%

0.00%
0.00%

0.00%

1.56%

2.09%

9.05%

9.0532%

Annual Sustainability Report 2023

53

SUSTAINABILITY

15

SUSTAINABILITYOBJECTIVES
PUBLISHEDAN ANNIVERSARY
TO BE CELEBRATED
It is the tenth anniversary of the Corporate Social Responsibility Department,
which has taken a strong, systematic approachto the environment, social and governance matters — always a partof Brembo’s identity. This path continues to be strengthened,through a tangible daily commitment.

228
13

IDEAS COMPETINGFOR THE BREMBOSUSTAINABILITY
AWARDSCSRAMBASSADORSWITHIN THE GROUP

28

CSR
CHAMPIONSWITHINTHE GROUP

2. Sustainability

2. SUSTAINABILITY

13

CSR Ambassadors
within the Group

228

28

Ideas competingfor the Brembo
Sustainability Awards

CSR Champions
within the Group

2.1 SUSTAINABILITY FOR BREMBO
To Brembo, sustainability has now become a distinctive
trait integrated into the Group’s business model and guides
its growth and development, year after year. Sustainability
is part of Brembo's strategic vision — “Turning Energy Into
Inspiration” — within the framework of the Digital, Global
and Cool Brand pillars.

•

2008 - 2015: The reporting process continues throughthe inclusion of the sustainability performance into thecompany’s business model. Aspects such as the macro-economic scenario, safety and environmental risks,
company organisation, research and human resources are included in the Directors’ Report on Operations
within the Financial Report.

•

2016: The Group publishes its first Sustainability Report(on a voluntary basis).

•

2017 to date: The Group reports its environmental andsocial performance within its Disclosure of Non-Financial Information which also includes all the policies thathave since always been part of its actions at global level in the areas of compliance, ethics, responsibility, sustainability and transparency. The document illustrates
the values that Brembo considers to be the foundationof the precious ‘intangible’ heritage formed by its brand,
its reputation and the set of principles that characterise
the way in which a socially responsible company acts.

This commitment started in the late 1990s:•

Late 90s: Brembo is beginning to commit to analysing
the value of intangibles by evaluating its ability to create not just economic, but also social, environmental
and other value.

•

1999: The drafting of the first Intangible Capital Reportformalises this process.

•2004-2007: The Value Report is published, emphasising the close relationship between the Group’s economic results and its environmental and social performance.

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15

Sustainability
objectives
published2.2 The Governance of Sustainability

2.2 THE GOVERNANCE
OF SUSTAINABILITY

The Group’s willingness to operate in an increasingly responsible manner and include in all respects sustainability
in its business practices has prompted the implementation
at Brembo of a Governance system that is dedicated to supervising and managing these topics at global level.
The key figure at the heart of Brembo’s sustainability governance is the Chief CSR Officer, a role entrusted to the
Director in charge of the Internal Control and Risk Management System.

Besides interacting with the Audit, Risk & Sustainability
Committee, the Chief CSR Officer is responsible for proposing, coordinating and deploying social responsibility projects and initiatives, monitoring action plans in the variousorganisational units (also in light of external best practices), analysing information documents and stakeholders’requests regarding sustainability-related topics, as well as
coordinating activities involved in the drafting of the annual Disclosure of Non-Financial Information.

CHIEF
CSR
OFFICERBOARDOF DIRECTORSManagement

Audit, Risk
& Sustainability
Committee

CSR COMMITTEE

CSR
Team

Task
Force

Head
of RiskManagement

CSR
AMBASSADORSCSRChampions

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2. Sustainability

To support the Chief CSR Officer, Brembo has set up a dedicated Task Force, consisting of experts belonging to thevarious Global Central Functions (GCF) involved in sustainability matters, with the task of thoroughly analysing —each within its remittance — specific aspects in the field ofcorporate projects, as well as data collection for the Disclosure of Non-Financial Information.
In particular, one internal resource within the Communication GCF area deals with the promotion and communication of sustainability projects, collaborating on an ongoing-basis with the CSR team. In the same way, a resourcefrom Human Resources & Organisation GCF collaborates
on an ongoing basis with the team’s project planning.
Brembo has also set up a CSR Committee consisting of
the company’s top managers and the heads of the GCFs
that are more closely involved with sustainability. The Committee is tasked with determining the Sustainability Guidelines, adopting the related policies, proposing a plan containing the environmental and social strategic objectives,approving the projects submitted by the Chief CSR Officer
and validating the preparatory activities needed to launch
the sustainability reporting process.
The CSR Committee is also required to effectively oversee
the stakeholder engagement process and the sustainability-related risks, as well as to assess the draft Disclosure ofNon-financial Information.
Lastly, in accordance with the provisions of Borsa Italiana’s
Corporate Governance Code, the Group has set up an Audit,

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Annual Sustainability Report 2023

Risk & Sustainability Committee within the Board of Directors, consisting of 3 Independent Directors, each with a
3-year term. The current Committee was appointed on 20
April 2023 and will remain in office until the General Shareholders’ Meeting called to approve the Financial Statements at 31 December 2025.
The Audit, Risk & Sustainability Committee supports theBoard of Directors, on the basis of an adequate preliminary
analysis process, in its evaluations and decisions concerning
the internal control system and risk management, sustainability matters and interaction with stakeholders. In particular,
this Committee analyses and expresses opinions on the sustainability policies and procedures, as well as the guidelines
and the company goals with related processes linked to socialand environmental topics. Moreover, the Committee monitors
sustainability-related international initiatives and actively involves the Group with such initiatives to raise the company’s
profile in the international arena. It also expresses its opinions
in relation to the identification of the main corporate risks,particularly those involving sustainability, environmental andsocial topics. Finally, it analyses and assesses the draft Disclosure of Non-Financial Information, which is submitted forapproval to the Board of Directors on a yearly basis.
In this context, it should be noted that the Audit, Risk &Sustainability Committee reports to the Board of Directors, at least on a half-yearly basis, upon the approval of
the annual and six-monthly report, on the activity performed, as well as the adequacy of the internal control

2.2 The Governance of Sustainability

and risk management system and, in any case, upon thefirst meeting of the Board of Directors should significant
issues emerge during its meetings.
With regard to the activities carried out in 2023 by the Audit, Risk & Sustainability Committee, please refer to the2023 Brembo Corporate Governance and Ownership Structure Report (Paragraph 9.2).
CSR Ambassador and CSR Champion positions were created in 2019 to raise awareness of sustainability at the various
Brembo plants worldwide and to establish a direct, active
communications channel. Their mission is to spread a CSR
culture, promote activities and support local initiatives relating to sustainability, in addition to interacting regularly with
the CSR GCF to share information, events and projects infavour of sustainable development. The differences between
the two positions are the level of responsibility and scope ofaction: CSR Ambassadors operate at the level of the region/
legal entity and rely on assistance from the CSR Champions

who operate at the site level and report the information to
the appropriate CSR Ambassador. In 2023, the CSR Ambassadors and CSR Champions took part in dedicated sessions,both to train on environmental issues (e.g. the Sustainability Self-Assessment, the Sustainability Report, the Brembo
Sustainability Awards competition, third-party sustainability
audits and a session dedicated to the activities relating to
the Pillars and the Gen Z Forum) and share projects and initiatives. At the end of 2023, there were 13 CSR Ambassadorsand 28 CSR Champions at work within the Group.
Starting in 2023, a Sustainability Self Assessment (SSA)
was implemented, marking a significant step towards
more integrated governance. This is a self-assessment
questionnaire based on the main requests from the Group’stakeholders, industry best practices and third-party audit
requests. The project’s goal is to periodically collect andmonitor the status of each plant and legal entity within
the Group with regard to ESG matters, identifying any improvement actions.

BREMBO’S SUSTAINABILITY MANAGEMENT PROCEDURES
Brembo has adopted several procedures aimed at regulating the roles,
activities, responsibilities and timetables relating to the preparation process of the Disclosure of Non-financial
Information.
In particular, the “Preparation Processof Consolidated Disclosure of Non-Financial Information” procedure aims
at describing the mechanisms and theoperational process used for preparing
the disclosure, in accordance with GRI
Sustainability Reporting Guidelines. It
describes the stages, activities, roles,
responsibilities and timetables of the
GCFs involved in the planning, information gathering, and control needed
to implement the reliability, consistency, traceability, timeliness, accuracy,completeness and substance requirements. Lastly, the procedure also contains details relating to the validation
process of data and information of anon-financial nature, as well as the ac-tivities underlying the drafting of theDisclosure of Non-Financial Information and its approval and verification.
An important role in this process isplayed by the Task Force responsible
for collecting data for the preparationof the Disclosure of Non-Financial
Information, supported by the CSRTeam in day-to-day activities.
As of 2019, Brembo implemented software, called “b-Sustainable” (formerly
CSR 365), to collect the data and information included in the Disclosureof Non-Financial Information in orderto improve the traceability of approval processes and minimise the risks oferror in the data collection and consolidation phase.
This procedure was updated by the
Board of Directors on 17 December
2020, with the favourable opinion of
the Audit, Risk & Sustainability Committee of 10 December 2020, so as
to report on the collection process

through the “B-Sustainable” tool.
The “Institutional Bodies involved
in Corporate Social Responsibility”
procedure, on the other hand, describes the roles and responsibilities
of Brembo’s institutional bodies involved in Corporate Social Responsibility issues, regulating their relations
and communication flows.
The “Requests from stakeholders”
procedure is aimed at illustrating theproper information and responsibility
flow when answering to stakeholders
on sustainability-related topics.
The CSR GCF is responsible for coordinating answers, availing to this end of
the support of the Task Force.
The procedure was updated in 2023
following the development of an IT
tool that allows for better monitoringof requests. In addition, training sessions were provided to the sales area
to illustrate the new tool.

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59

2. Sustainability

THE GROUP’S VALUES

Ethics, Quality, Acknowledgement, Proactivity and Belonging are the five guiding values, enshrined in the company’s Code of Ethics, that make up the wealth of Brembo’s

Ethicsshared culture, as well as a benchmark for conducting thecompany’s business and operations in full respect for all
the Group’s stakeholders.

Responsibility
Transparency

Behaving with integrity, honesty
and respect, placing common interests
before individual interests

Proactivity

CourageChangeAnticipating changes
and promoting innovation
by exceeding expectations

Belonging

Style
Partnership

Feeling part of the Company
and proud to be recognised as such

For further information:www.brembo.com/en/sustainability/esg/governance/codes-policies

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Engagement
Quality

Customerfocus

The pursuit of excellence
through high quality
and timely performanceto achieve corporate goals

Attention
Trust
Acknowledgment Openness
Undertaking to improve thecontribution of people in orderto achieve company objectives
in terms of performance,skills, potential and motivation

2.3 The History of CSR

2.3 THE HISTORY OF CSRBrembo’s strong focus on people, the environment, thecommunity and its representatives has always been a distinguishing feature of the Group, which has shown itself
to be responsible and capable of responding to the needsof all its stakeholders.

1961
1989
1999

Building upon solid values, since its early years Brembo has
implemented practices and strategies that demonstrate its
focus on the impact of its activities on the world around it,
while also ensuring a perfect balance of economic growth,social development and environment protection.

Origins and values
On 11 January 1961, Emilio Bombassei and
Italo Breda founded Officine Meccaniche di Sombreno,
the original nucleus of today's Brembo
Scholarships were provided for the first timeto employees and their children
Publication of the Intangible Capital Repor
Automotive Quality certification(QS 9000 – AVSQ 94)

2000

ISO 14001 Environmental Certification

2001

Financial Statements Oscar (listed companies)

2003

Adoption of the Code of Ethics on a Group level
OHSAS 18001
Occupational Health and Safety Certification

2004

Publication of the Value Report

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2. Sustainability

2005

Receipt of the PrNational Prize
for Corporate Social Responsibility,
Città di Rovigo

2006

First Family Day in Poland

2007

Publication of the Charter of Values

2009
2010

Opening of the Stezzano Kilometro Rosso
campus site, in Italy
Brembo North America takes part in the
National Take Our Daughters and Sons To Work Day
Creation of the Brembo Kids in Italy:
recreation centre for the employees’ children

2011Completion of the first CDP questionnaire Climate Change

2012

Ambrogio Lorenzetti Award for businessgovernance (listed companies)

2013

Launch of the Brembo WHP (Workplace Health
Promotion) Project, Italy Brembo for Family,
Brembo to You in Italy: meetings for discussion
about healthy lifestyles, what it means to be aparent and individual wellbeing
Appointment of the Chief CSR Officer and institutionof the CSR Steering Committee33 and CSR Task Force
Brembo India, Water Saving Project
Sustainability Supplier of the Year Award
from Fiat-Chrysler
Adoption of the Anti-Corruption Code of Conduct,
which applies to all Group companies,

2014

The Social and Cultural Sponsorships
and Donations Committee is set up

Brembo India, Progetto Risparmio Idrico
Sustainability Supplier of the Year Award di
Fiat-Chrysler
Adozione del Codice di Condotta Anticorruzione,
valido per tutte le Società del Gruppo

First Family Day in the Czech Republic
Publication of the Policy on
Non Discrimination and Diversity
Launch of the “Brembo Strong” project in Brembo
North America aimed at promoting a healthy lifestyleat work and at home for employees

33 It should be noted that the CSR Steering Committee, set up in 2013, changed its name to CSR Meeting in 2020 and again to CSR Committee in 2021.

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2.3 The History of CSR

2015

Biofilter, Cast Iron Foundry in Mapello, Italy
Sustainability audit by BMW, Car Division, Curno
plant, in Italy
Support for the I Was a Sari Association, in India
Launch of the Brembo Car Pooling Project in Italy

2016

Launch of the SOSteniamoci project in partnershipwith the NGO Cesvi
Completion of the first CDP questionnaire –Water Security

2017

Publication of the first Sustainability Report(on a voluntary basis)
Definition of a CSR Management System
for the Group
Sustainability audit by Volkswagen,Dabrowa plant, in Poland
Inclusion of Brembo in the A-list Climate Change
2017 by CDP (CO2 emissions)
Launch of the project - House of Smile Brembo
India - Cesvi
House of Smile and I was a Sari receive
the Impresa Awards prize

2018

Adherence to the sustainable development goalsof the 2030 Agenda
Worldwide Publication of the Supplier Codeof Conduct
Launch of the Internal Awareness-raisingCampaign on Safety at Work
Brembo again included into the Climate Change
A-list and inclusion into the Water Security
A-list of CDP
Inclusion in the Integrated Governance Index

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2. Sustainability

2019

The roles of CSR Ambassador and CSR Champion
were created
Launch of the Sustainability Awards
Project “We support SDGs”
Cluster de Automoción de Aragón –assignment of the Social Responsibility Prize
to Brembo Corporacion
PFCA Green Status award“Welcome - Working for refugee integration”
recognition from the UNHCR to the “SOSteniamoci”
project
Inclusion of Brembo into the Sustainability Mapof the organisation CSR Natives
Signing of the CEOs Call to Actionof the Fondazione Sodalitas
Launch of the “School on Wheels” projectin collaboration with the NGO Door Step School in
IndiaAwarding, for the second year, of the AA scoreby CDP (Climate Change and Water Security)

2020

Daimler Supplier Award 2020
Supplier Quality Excellence Award 2020 bestowedby General Motors
Corporate Social Responsibility Award 2020, awarded
by the European Union’s Chamber of Commercein China (EUCCC). Brembo ranked second
Brembo S.p.A. and Brembo Poland awarded
with the “silver” status by the Achilles platform
EcoVadis’ GOLD CSR Rating
EcoVadis’ GOLD CSR Rating
Assignment of an AA score by CDP for the third year
(Climate Change and Water Security)
Launch of the Dream Center project in China
in partnership with the NGO Adream.

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Relazione di Sostenibilità Annuale 2022

brembosustainability
awards2.3 The History of CSR

2021

Assignment of an AA score by CDP for the fourthyear (Climate Change and Water Security)
The Brembo Forest is created in Kenya
in partnership with Treedom
Main Sponsor of the Sustainability Gallery at the
Science Museum (MUSE) in Trento

Dalle piccole cosepuò nascere un
grande progetto.

Collaboration with the Italian newspaper
Corriere della Sera for the “Towards 2030 — roads
to the sustainable future” podcast#Brembo4Earth

Participation in the INPROVES Project for thedevelopment of a new generation of electric motors
First edition of the internal engagement initiative
Gen Z Forum
APP Brembo Check for identifying and combatingproduct counterfeiting
Launch of SENSIFY™, the new pioneering
intelligent braking system

2022

Assignment of an AA score by the CDP for thefifth consecutive year (Climate Change and Water
Security)
Collaboration with the MUDEC for the creation of
the exhibition “The Art of Breaking – an engaging
exhibition about brakes”
Implementation of the new Brembo’s Sustainable
Procurement Policy“Put Your Face on It” campaign to sharethe important role that each person has in creatinga sustainable world
Iveco Sustainability Together Award 2022 awarded
during the “BEYOND - Iveco Group Days” thanks to theinnovative spring Enesys - Energy Saving System ®

Update to the Policy on Non Discrimination
and Diversity and Brembo DEI Charter
Collaboration with the non-profit CESVI as part of
the Safe Haven project, involving the provision of ahotel in Poland to host the most fragile individuals
fleeing the Russia-Ukraine conflictRelazione di Sostenibilità Annuale 2022

65

2. Sustainability2023

Ten years of the CSR area: A point of reference in the
promotion of sustainable practices, Brembo’s CSR GCF
is celebrating its tenth anniversary this year.
Over the past ten years, the GCF has guided the Groupin defining and implementing the strategies that put
sustainability and ethics at the heart of the company’s
operations. This milestone represents concrete
recognition of the constant dedication to a more
responsible, sustainable future
Launch of the online sustainability e-learning course“Turning Sustainability into Action” in the CSR GCF’s
tenth anniversary year. The course aims to spreadthe Group’s sustainability culture and main activities
through three modules dedicated to environmental,social and governance (ESG) aspects
Launch of the Sustainability Self-Assessment: aself-assessment questionnaire based on stakeholders’requests and best practices and administered to theGroup’s legal entities/countries and sites to collect andperiodically monitor the state of progress on ESG matters
Release of the first Stakeholder Engagement Policy,
which defines the Group’s stakeholder engagement
methods
Involvement in audits by the Responsible Business
Alliance (RBA), the world’s largest industry coalition,with over 150 leading companies, dedicated tocorporate social responsibility in global supply chains,according the “Validated Assessment Programme”(VAP), aimed at verifying onsite compliance andconducting effective, shareable audits
Launch of the Child Friendly Space project incollaboration with the CESVI Foundation: a project
dedicated to supporting women and children affectedby the earthquake in Turkey in February 2023
Assignment of a double A- score by the CDP: Brembo
was confirmed among the leading companies at
global level for its actions against climate change andfor water management (Climate Change and Water)
Bergamo Brescia Italian Capital of Culture 2023:
Brembo has decided to support Bergamo Brescia
Italian Capital of Culture 2023 as a system partner, an
exceptionally important initiative that is committed togathering energy and listening to the protagonists of
the local area in which Brembo has its roots, promoting
reflections on the present and possible futureHouse of Smile: the project, in collaboration with the
CESVI Foundation, reached over 5,000 beneficiaries(children and women) since its inauguration in 2015

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10

2.4 Dialogue with Stakeholders

2.4 D IALOGUE WITH STAKEHOLDERS

Over the years, Brembo has established an active and constant dialogue with its internal and external stakeholders,
based on the values of transparency, trust and consensus
in decisions. Thanks to this dialogue the Group has the opportunity to obtain important information about the reference context and receive feedback on its operations, sothat it can continually improve the impact of the company’s activities on the environment and on society. Throughthis process of listening and dialogue, Brembo is able toassess the extent to which it is understanding and satisfying the expectations and interests of its stakeholders byidentifying the areas in which to increase its commitment
and those in which to confirm the approach adopted. Testifying to its commitment to building solid relationships
with its stakeholders, in 2023 the Group published the“Brembo Stakeholder Engagement Policy”, which defines
the channels of dialogue between the Group and its stakeholders.
Establishing ongoing, mutually fruitful dialogue requires:••the identification of key stakeholders with which to promote periodic dialogue initiatives: in this regard, themap of stakeholders, which includes the associated expectations, has been drawn up thanks to internal investigations within the company structures responsible forthe daily management of relations with the respective
stakeholder categories;
the definition of the most appropriate methods of ensuring stakeholder engagement.

BREMBO’S STAKEHOLDERS

Futuregenerations
Bremboemployees

Customers

End
users

Suppliers

Stakeholder map

Investors

Institutions

Tradeassociations

Insurancecompanies

Local
communities

Industry companies
and competitors

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2. Sustainability

The following table sums up the listening and engagement tools and the expectations of all the Group’s stakeholders, illustrating the various interests to which Brembo is required to respond. In addition to the tools listed
in the table, anyone connected to the Group’s activities— such as employees, contractors, suppliers, customers,

shareholders and individuals in administration, management, control, supervisory or representation functions —can report any violations through a dedicated reporting
channel (for further information, see the Brembo Stakeholder Engagement Policy, available from the website
www.brembo.com).

GROUP
STAKEHOLDERSFEEDBACKAND ENGAGEMENT TOOLSSTAKEHOLDERS’ EXPECTATIONSAND INTERESTS WITH REGARD TO BREMBO

Investors

General Shareholders’ Meeting

Increase in the value of the Brembo Group’s shares

Feedback and support channels offeredby the Investor Relations area

Reduction of the risks associated with the investment

Brembo Shareholder Engagement Policy
Meetings, roadshows and conference callswith analysts and investors

Transparency of Corporate Governance structures,long-term strategy and objectives, management actions
and company performance, as also extended to theenvironmental and social arena

Corporate website and dedicated e-mail accounts
Engagement Survey on the relevanceof material topics for Brembo
Customers

Daily activities and reports of the Global
Business Units: Aftermarket, Discs, Motorbikes,
Performance and Systems.
Joint development programmes

Product reliability and safety
Reliability and flexibility of production processes
to ensure business continuity and delivery times

Supplier assessment questionnaires and qualification
processes

Constant product innovation, including
the improvement of environmental performanceand attention to product design

Customer support channels

Support for joint development of custom solutions

Support and training network for Brembo Expert
repair professionals

Technical support for the network of repair
and maintenance service professionals in the transfer
of know-how

Surveys to identify customers’ needs and expectations
for the development of new products
Corporate website
Engagement Survey on the relevanceof material topics for Brembo

Protection of the value of the Brembo brandas a distinctive element for vehicles and motorbikes
and of the ingredient branding strategy

Dedicated events
End User

Customer support channels

Reliability and safety of Brembo products

Monitoring and interaction on social networks

Information about proper brake system maintenanceFeedback from vehicle and motorbike manufacturers

Protection of the value of the Brembo brandas a distinctive element for vehicles and motorbikes

Participations in trade fairs and eventswith engagement activities for new users
and new generations

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Annual Sustainability Report 2023

Interaction with, and reaction to, the new digital
activities in new engagement areas and areas relating
to new generations

2.4 Dialogue with Stakeholders

GROUP
STAKEHOLDERSFEEDBACKAND ENGAGEMENT TOOLSSTAKEHOLDERS’ EXPECTATIONSAND INTERESTS WITH REGARD TO BREMBO

BremboEmployees

Global Engagement Survey and Pulse Survey

Transparency and engagement with regard
to Company objectives and performance

Industrial relations
Internal communication channels (eg., Red portal,
My B Magazine, information notice boards)

Discussions of related topics with the company
employee participation body, where applicable

Internal communication campaigns
Town hall meetings
Communication and engagement with regard
to the Group’s objectives and performance
Suppliers

Daily activities and reports of the Purchasing GCF

Timely and proper fulfilment of contractual conditions

Engagement Survey on the relevance of material
topics for Brembo

Continuity of supply requests

Conflict Minerals Engagement Survey for the annual
Supplier Survey in relation with their use of conflictminerals
Cobalt Engagement Survey and Mica Engagement
SurveyCorporate Social Responsibility-related training
provided to the Purchasing GCF personnel,
with an in-depth analysis of the supply chain

Possibility of developing strategic partnerships
to improve activities
Attention to human resources management,in particular to workplace health and safety
as a primary risk factor
Reduction of the environmental footprint,
with particular regard to the monitoring of climate risks

Brembo Supplier Portal
Workshops dedicated to suppliers
Local
Communities

Orientation and involvement of secondary school anduniversity students and related recruiting programmes
Roundtables and discussions with the Public
Administration
Initiatives involving the opening of Brembo’s facilities
to visits from workers’ families (“open door” days)in various countries where the Group is present
Initiatives in support of the social and culturaldevelopment of local communities promotedby the Group
Whistleblowing mechanism for alleged violationsof the Code of Ethics
Monitoring through the media (press, specialist
publications, TV, Web and social networks)

Support to the world of schools, also througha willingness to host students on alternating
school-work paths
Collaboration with Universities and research centresin the development and spread of engineering, technicaland scientific knowledge and skills
Offering of job opportunities and transparent,
merit-based recruitment processes
Creation and protection of employment
within the Group and its ancillary businesses
Development of production and logistics processes
that safeguard environmental conditions and the healthof populations near Brembo’s production facilities
and those of the suppliers
Participation and support by Brembo in culturaldevelopment and social inclusion projects
Support in favour of centres of medical research
Support in favour of local communities throughthe distribution of personal protective equipment

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2. Sustainability

GROUP
STAKEHOLDERSFEEDBACKAND ENGAGEMENT TOOLSSTAKEHOLDERS’ EXPECTATIONSAND INTERESTS WITH REGARD TO BREMBO

Institutions

Roundtables and initiatives involving discussion
with institutions, at national and international level

Ensuring full compliance with and observanceof applicable legislation

Hearings before parliamentary committees throughthe associations

Contributing to the development of regulations
concerning the monitoring of polluting emissions
in the automotive sector through the sharingof know-how and of specific industry knowledge
Promotion of local development and the achievementof the objectives established by the international agenda
Monitoring of the process to manage social andenvironmental risks throughout the value chain

FutureGenerations

Focus on the awareness campaigns of environmental
associations and on analyses of the scientificcommunity
Orientation and involvement of secondary school anduniversity students and related recruiting programmes
Launch of targeted engagement projects Annual
incubator for innovative ideas powered by the newgenerations

Industry
Companies andCompetitors

Participation in the proceedings and themedcommittees of trade associations
Participation in advanced research projects
through Italian or European consortia (e.g. The LIFE
Programme: the EU’s funding instrument for theenvironment and climate action)

Fight against atmospheric pollution and global warming
Conservation of natural resources and circularity of theeconomyProtection of ecosystems and natural biodiversity
Contribution to the achievement of the UN Sustainable
Development Goals

Involvement in the analysis of the industry’s
performance and needs to define common strategies
for improving the sector and developing industry-wide
policies
Collaboration through advanced research projects
for pre-competitive technological development
Protection of freedom of competition

Insurance
Companies

Engagement Survey on the relevance of material
topics for Brembo
Visits to the Group’s plants by the insurer
for property risk assessment
Periodic audits by the insurer regarding liability risks

Trade
Associations

Effective risk management system, in particular risks
of product and product recall Civil Liability losses andthose related to accidents and occupational diseases
Definition and implementation of technical andorganisational measures aimed at preventing andcontrolling risks related to losses to property and activity

Roundtables and initiatives involving discussion withinstitutions, at national and international level

Ensuring full compliance with and observanceof applicable legislation

Hearings before parliamentary committees

Contributing to the development of regulations
concerning the monitoring of polluting emissions
in the automotive sector through the sharingof know-how and of specific industry knowledge

Engagement Survey on the relevance of material
topics for Brembo

Promotion of local development and the achievementof the objectives established by the international agenda
Monitoring of the process to manage socialand environmental risks throughout the value chain

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2.4 Dialogue with Stakeholders

DIALOGUE WITH THE KEY PLAYERS IN THE AUTOMOTIVE INDUSTRY

Dialogue with institutions and discussion with major
players in the sector are the lifeblood necessary to maintain relationships of trust with stakeholders and ensure
being able to remain up to date with industry developments. It is for this reason that Brembo is a member ofvarious associations and takes part in working groups
at both local and international level. It is committed toworking in partnership with an industry-oriented approach that allows the automotive and motoring sector to grow, innovation to be stepped up and progressachieved in the general interest.
At supranational level the Group collaborates with the following associations/organisations:

ASSOCIATION

MAIN OBJECTIVESAUTOSAR (Safety Group) Automotive Open System
Architecture

A global development alliance founded in 2003 that brings together companies,
suppliers, service providers and businesses in the automotive, semiconductor
and software sectors to create an open, standardised software architecture for vehicle
system electronic control units

CLEPA - European Associationof Automotive Suppliers

Brings together the automotive suppliers at European level, representing their interests
in dealings with the European institutions, the United Nations and related organisations,
including ACEA, JAMA and MEMA. Brembo is a member of the Board

UNECE – United Nations
Economic Commission
for Europe

Its main aim is to promote economic integration amongst the 56 member statesin Europe, North America and Asia

At national level the Group takes an active part in the following initiatives:

ITALY

AIDAF - Italian Family Business: founded in 1997 by Alberto Falck and a group of entrepreneurs who share thesame principles, AIDAF aims to be a point of reference for
Italian family businesses.
AIRI: the Italian Association for Industrial Research plays anactive role in promoting national and international cooperation in industrial research. Brembo is a member of the Board.
AODV: association of Regulatory Body members pursuant
to Legislative Decree 231/2001.
ANCMA: represents manufacturers of motorbikes and theircomponents operating in Italy, safeguarding their interestsand promoting the resolution of economic, technical andregulatory issues in the industry.
ANFIA: brings together more than 260 Italian enterprises
operating in the motor vehicle construction, conversion
and equipment sectors for the individual and collective
transport of people and goods. Brembo is a member of theBoard of Directors.
ASPEN INSTITUTE ITALIA: a private, independent, international, nopartisan non-profit association. The Institute analyses problems and challenges currently facedby politics, economy, culture and society, with a particular focus on the Italian and international business
community. Its mission is the internationalisation of
the country’s business, political and cultural leadership
through free exchange of ideas and between people ofvarious origins to identify and promote common values,
knowledge and interests. Brembo takes part with interest in the roundtables and conferences organised by the
Aspen Instituteesse a Tavole Rotonde e Conferenze organizzate da Aspen.

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ASSONIME: represents Italian joint stock companies. It
studies and discusses issues concerning the Italian economy’s interests and development. In June 2017, the Brembo’s Chairman Emeritus was appointed a member of theBoard of Directors for the 2017- 2018 two-year period.

infrastructure and automotive. Its goals include expanding the community to operators that already collaborate
with, or an interested in collaborating with, Mexico

Italian-Russian Chamber of Commerce: contributes tothe development of economic, commercial, technical, legal,
scientific and cultural collaboration between Italy, the Russian Confederation and other CIS states.

AICIPI - Italian association of consultants and experts inbusiness and enterprise intellectual property; AIIA – Italian
Association of Internal Auditors; AIGI – Italian Company
Lawyers Association; AUTO-ISAC - Automotive Information Sharing and Analysis Center; Automotive SPIN Italia– Software Process Improvement; Forum of the Secretariesof the Boards of Directors of FTSE-MIB Companies; “Mario
Negri” Institute for Pharmacological Research; NED
COMMUNITY - Italian association of non-executive andindependent directors; Safety for driving automation
systems (ISO TC22/SC32/WG13); Functional safety –ISO
26262 – (ISO TC22 / SC32/ WG8); AIPI - Italian Interior Design Association; LES – Licensing Executives Society; UNI– Italian national body for standardisation.

Lombardy Mobility Cluster: this is one of the nine Technology Clusters recognised by the Lombardy Region, forwhich it acts as institutional representative for Researchand Innovation; it covers the automotive, nautical, railway,
and intermodality sectors (transport and infrastructures).
Brembo is a member of the Board.
Italian National Transport Cluster: the National Technology Cluster “Trasporti Italia 2020” (CTN Tra.IT2020) is an association recognised by the Italian Ministry of Education,
Universities and Research as a reference for the land andmaritime mobility vehicles and systems sector.
CONFINDUSTRIA: represents manufacturers and services operating in Italy, promoting the protection of theirlegitimate interests in relations with institutions, public
administrations and economic, political, trade union andsocial organisations. Brembo is the general representative for large enterprises within the association’s General
Council.
ISPI – Italian Institute for International Political Studies,
established in Milan in 1934 with the aim of promoting in
Italy the study of international issues.
KILOMETRO ROSSO: one of the leading private innovation districts in Europe which combines the worlds of research and business.
SAE – Society of Automotive Engineers: a global association of more than 100,000 engineers and related technicalexperts in the aerospace, automotive and commercial vehicle industries.
AEMI: the Economic Association of Mexico in Italy pursues the mission of consolidating industrial, commercial,
cultural, tourism, scientific and academic ties between thetwo countries. Its members include small, medium andlarge companies from various industries, from energy to

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Brembo is also a member of the following associations:

SPAIN

ANESDOR: Asociación Nacional Empresas del Sector deDos Ruedas which represents the brands of the two-wheel
vehicle sector in Spain. Brembo is a member of the Board.
CAAR: Clúster de Automoción de Aragón which seeks tostrengthen the automotive and mobility sector in the Aragon community. Brembo holds the chairmanship.
CEJE: Círculo empresarial Japón España which is the association encompassing the Japanese companies operatingin Spain. Brembo is a member of the Board.
Italian Chamber of Commerce: contributes to the development of the economic and commercial partnership
between Italy and Spain.
SERNAUTO: brings together enterprises operating in the
sector of motor vehicle spare part equipment production,
looking after their relations with key national and international organisations.
Brembo is also part of the following associations and research centres:2.4 Dialogue with Stakeholders

CEAM: Centro de estudios y asesoramiento metalúrgico;
Circulo Empresarial Japón-España; Clustermoto; FEMZ
(Federación de Empresarios del Metal de Zaragoza); Pimec-Sefes; UPMBALL: Unión Patronal Metalúrgica del’Hospitalet y Baix Llobregat.

Maharatta Chamber of Commerce & Industries: an association for the industrial and economic development of
the Pune region.
Society of Indian Automobile Manufacturers: brings together and represents the main motor vehicle and component manufacturers.

POLANDCHINA
PKPP Lewiatan: brings together enterprises operating in
the country, encouraging the protection of their legitimate
interests in relations with public institutions and trade union organisations.
Silesia Automotive & Advanced Manufacturing Association – Katowice Special Economic Zone: industrial cluster whose goal is to support the development of strategiccompetencies for the automotive sector.

DENMARK

Confederation of Danish Industry: the Confederation ofDanish Industry is the largest business and employers’ organisation in Denmark.

INDIA

Automotive Component Manufacturers Association:
association representing the interests of the Indian automotive industry.
Indo-Italian Chamber of Commerce and Industry: promotes economic and trade activities between India and Italy.
Confederation of Indian Industry: promotes industrial development in India, representing the interests of thebusiness community and fostering collaboration with theGovernment and civil society.
International Market Assessment India Pvt. Ltd: anassociation offering consultancy services. Brembo participates in the CEO & CFO forum.

European Chamber of Commerce Nanjing Chapter:organisation which supports European companies in Nanjing, fostering dialogue with local authorities and the development of the city as an investment destination.
Italian Chamber of Commerce Shanghai Office: officecharged with promoting internationalisation of Italiancompanies and the Made in Italy.
Nanjing Association of Enterprises with Foreign Investment: association that promotes foreign business investments.

UNITED STATESMiX - Modern Industry Expertise: a consultation council for
aftermarket executives with the objective of educating andtackling business concerns from the standpoint of millennials.
OESA - Original Equipment Supplier Association: brings
together the main enterprises operating in the United States
automotive sector with the aim of promoting industry supply chain collaboration and safeguarding mutual interests.
PRSA - Public Relations Society of America.
Moreover, Brembo is also a member of the following associations:
Women of Auto Care Council, Purchasing Council,
Communications Executive Council. Brembo is also amember of local Chambers of Commerce that encourage the development of economic activities in the state ofMichigan, including that in Plymouth.

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MEXICOUNITED KINGDOM

Cámara Nacional de la Industria de la Trasformación,
which represents the whole industrial sector at national
level.

MIA Motorsport Industry Association: the main worldcommercial association for the Motorsport, Performance
Engineering, Services and Tuning sectors.

JAPAN

BRAZILICCJ – Italian Chamber of Commerce in Japan: association of Italian companies and entrepreneurs in Japan,
which promotes commercial trade and economic relations
between the two countries.

AMCHAM: American Chamber of Commerce in Italy, which
promotes the development of trade between Italy and theUnited States.

JSAE - Society of Automotive Engineers of Japan: Japanese society that promotes the development of automotive science and technology.

CZECH REPUBLIC

Autoklastr: an association of businesses operating in theautomotive sector. Brembo is a member.
Italian-Czech Chamber of Commerce and Industry: an
association of Italian companies operating in the Czech
Republic.

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SINDIPEÇAS: an association of businesses that promotes
the development of trade and mediates collective bargaining with the Trade Unions.

2.5 Materiality Analysis

2.5 MATERIALITY ANALYSISAs every year, the Brembo Group has updated its materiality analysis — the tool used to identify its material sustainability topics — and therefore aligned the content of
its Disclosure of Non-Financial Information, instrumental
to providing an overview of the Company’s operations, performance, results and, above all, future strategies and targets. These topics are also material aspects for Brembo’s
stakeholders and are identified and constantly updated,
including with its stakeholders’ direct engagement.
In 2022, in advance of the requirements imposed by the
new European Directive 2022/2464 (the Corporate Sustainability Reporting Directive), Brembo began the double materiality process, also integrating an “outside-in”
perspective (financial materiality) into its “inside-out” impact assessment process (impact materiality) according to
the GRI Universal Standards 2021. Whereas the “inside-out”

approach identifies the impacts generated, actually or potentially, by the organisation and its value chain on theoutside world, the “outside-in” perspective looks at the risks
and opportunities that may influence the Group’s creationof value, strategy, operating and financial performance andpositioning in the short, medium or long term.
For 2023, the assessment of the “outside-in” perspective(financial materiality) was conducted on the basis of theEuropean Sustainability Reporting Standards (ESRSs)
made available by the EFRAG, i.e. the reporting standard
that is to be used by companies subject to the Corporate
Sustainability Reporting Directive. This assessment is thus
to be regarded as fully voluntary and not subject to assurance by the third-party entity that certifies this Disclosureof Non-Financial Information according to the ISAE 3000
Revised standard.

IMPACT MATERIALITY – THE “INSIDE-OUT” PERSPECTIVE ACCORDING TO GRI

In line with the analysis conducted for the previous
year’s Disclosure of Non-Financial Information, in 2023
impact materiality was analysed in accordance with the
GRI Universal Standards 2021.
This analysis involves determining the impacts (positive and negative, actual and potential) generated by

1. Understanding
the organisation’s context

2. Impact
identification

organisations and their value chains on the economy,
the environment and people — including the impacts
on human rights.
In accordance with the principles of the reporting standard, the process of updating Brembo Group’s materiality
analysis — and the ensuing identification of material
topics — was structured into the four following steps:

3. Materiality
assessment

4. Impactprioritisation

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For the steps of understanding the context and identifying
the impacts generated, various sources of information andanalysis were considered, such as:
•

•

•
•

•

Analysis of the main sustainability topics at the regional and international level, through a verification of the
documents and reports of the most important andinfluential non-governmental organisations and policy-makers;
Analysis of the main documents prepared by associations, NGOs and industry organisations (such as CDC
and SASB) to identify the main sustainability topics inthe automotive industry;
Analysis of the sustainability reporting tools adopted byindustry companies;
High-level analysis of the most important sustainability-related articles in the press concerning Brembo Group,
to identify media and public opinion pressures;
Analysis of the main internal company documents(such as the Code of Ethics, 231 Model and Policies).

These analyses and the Brembo Group’s peculiarities
formed the basis for identifying the impacts – actual andpotential, negative and positive – that the Group and its

value chain have or may potentially generate at the external level.
Once the impacts were identified, their significance was determined in accordance with the GRI Standards and througha separate analysis by type. In particular, the significance ofan actual impact was determined on the basis of its severity, whereas that of a potential impact also took account of
its probability of occurrence. The following analysis was performed to assess the severity of each impact: Scale, Scope
and, for negative impacts, irremediable character.
Impacts were then prioritised on the basis of their materiality, and a materiality threshold was defined, enabling theidentification of the most significant impacts. Finally, these
impacts were grouped into the material topics that guided
Brembo Group in preparing its 2023 NFI.
In the update of the materiality analysis, led by the Chief
CSR Officer in concert with the Top Management, Brembo involved the Board of Directors, the Board of Statutory
Auditors, the CSR Committee and a selection of external
stakeholders, asking them to express an opinion of the assessment of sustainability impacts.

STAKEHOLDER ENGAGEMENT

To identify and assess sustainability impacts and definematerial topics according to the “inside-out” perspective,
in 2023 Brembo directly engaged its internal and external
stakeholders in the assessment of the severity of the impacts identified.
Internally, for the CSR Committee a dedicated workshop
was organised for the presentation of the main developments in reporting and in prioritisation of impacts, divided into “Environment”, “People” and “Economy”. The
Group’s Directors and Statutory Auditors were also asked
to assess impact severity by completing an online questionnaire.

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The same questionnaire was also administered to the main
external stakeholders, following a webinar dedicated topresenting it and explaining the purposes of their engagement. In 2023, the response rate of those involved — i.e. a
selection of suppliers, customers, insurance companies andinvestors — was 49%.
The assessments received from the CSR Committee, members of the BoD, members of the Board of Statutory Auditors and individual Stakeholders were aggregated, and theresulting impact severity scale — along with the identification of the probability of occurrence for potential impacts— made it possible to identify the most significant impacts
and thus the related material topics.

2.5 Materiality Analysis

MATERIAL TOPICS AND IMPACTS
MATERIAL TOPICS
GREENHOUSEGAS EMISSIONSACTUAL IMPACTS (positive/negative)-+-

POLLUTING
EMISSIONS+POTENTIAL IMPACTS (positive/negative)

Climate change caused by greenhouse gas
emissions
Reduction of greenhouse gas and polluting emissions
generated by final users through the development ofinnovative technologies
Damage to the environment and human health due topolluting emissions in the air
Reduction of greenhouse gas and polluting emissions
generated by final users through the development ofinnovative technologies-

Reduction of energy availability due to nonefficient production processes-

Soil occupation and pollution due to nonvirtuous waste managementi

DIVERSITY, EQUITYAND INCLUSION-

Non-compliance with equal opportunities
legislation in the workplace

PROTECTION
OF HUMAN RIGHTS-Human rights violations

ENERGYEFFICIENCYPROTECTION
OF WATER RESOURCES-

Water scarcity, in particular in water-stressed areas, due towater consumption in the production process

WASTE
MANAGEMENTPROTECTION
OF BIODIVERSITY-

Soil occupation and loss of biodiversity

ENVIRONMENTALLYSUSTAINABLE PRODUCT+Primary raw material saving through the use of recycled andrecyclable materials

WORKERS’ HEALTHAND SAFETY-

Workers’ accidents and occupational diseases-

WELLBEING
OF PERSONNEL
TRAINING
AND DEVELOPMENT
OF PERSONNEL+

Development of skills and know-how through ad hoc training
activities

DATA PROTECTION
AND IT SECURITY
PRODUCT
SAFETY+

Increased safety of the end user through the implementationof innovative technologies in products

PROTECTION
AND DEVELOPMENT OF
LOCAL COMMUNITIES+Impacts on the social and economic growth of the local areasand communities+

Transparency and involvement of the supply chain insustainable practices through monitoring and training
programmese

SUSTAINABLE
SUPPLY CHAIN
BUSINESS ETHICS
AND INTEGRITY+ Positive impact- Negative impact

Failure to ensure workers’ wellbeing due
to the absence of dedicated company
initiatives-

Privacy violation and loss of sensitive data-

Damage to consumers due to the absenceof product quality and safety checks-

Damage to the economic system due to
unfair business practices

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2. Sustainability

All the material topics identified are generated throughout
Brembo’s value chain, except for “Privacy violation and lossof sensitive data” and “Development of skills and know-how
through ad hoc training activities” which only refer to theGroup’s direct operations.
In addition to those set out in the table above, the following impacts not deemed material were also identified andanalysed: “Pollution of water resources due to discharges ofharmful substances”, “Visual impact of production facilities
and extraction sites” and “Damage to local communities
due to noise pollution”.

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Compared to the materiality analysis of the previous year, a
new material topic, “Protection of biodiversity”, was identified, whereas the topic “Wellbeing of personnel”, previously
not explicitly stated, was identified as a separate topic. On
the other hand, the two previous material topics “Researchand innovation” and “Digital Transformation Roadmap”
were excluded as they were considered transversal and partof the business strategy.
In the interest of a clearer understanding of material topics,a description of the associated impacts and how the Group
monitors and manages them is provided below.

GREENHOUSEGAS EMISSIONSThe consumption of fossil fuels and electricity in its buildings and facilities, the combustion of fuel for thecompany fleet and the use of materials during production contribute to climate change caused by greenhousegas emissions (Scope 1 and 2). In addition, the transport of company products by third parties, as well as thepurchase of services, materials and finished products from suppliers, including their transport, entail greenhousegas emissions caused by such suppliers during their production activities (Scope 3). Aware of these impacts, theBrembo Group is committed to pursuing the ambitious goal of achieving net zero emissions by 2040, supported
by a defined roadmap designed to gradually reduce Scope 1, 2 and 3 greenhouse gas emissions. Brembo’s
commitment to reducing greenhouse gas emissions also extends to end users through the use of innovativetechnologies in its products, which make it possible to limit the weight of brake systems and therefore to reduce
GHG emissions.

POLLUTING
EMISSIONSThe processes of extracting raw materials and manufacturing and painting brake components generate polluting
emissions such as carbon monoxide (CO), nitrogen oxides (NOx), particulate matter (PM) and sulphur oxides(SOx), which may cause harm to the environment and human health. Thanks to the Environment and Energy
Management System, Brembo has introduced requirements common to all the Group’s plants aimed at containing
emissions well below the emission limits imposed by the legislation of the Countries in which it operates.
In addition, thanks to the use of particular materials and innovative technical solutions, Brembo’s products permit
a reduction of the polluting emissions caused by brake wear and tear during use.

ENERGYEFFICIENCY

Inefficient production processes not only use more energy to achieve the same result in production, but also
contribute to reducing overall energy availability. This phenomenon accelerates fossil fuel consumption, exhausts
energy resources more rapidly and increases greenhouse gas emissions. The environmental consequences of such
inefficiency may be significant, resulting in higher energy costs and in economic penalisation for the Company.
Faced with these challenges, Brembo is actively committed to seeking constant reduction of direct and indirectenergy consumption. Through investments aimed at the adoption of the best available technologies in terms ofenergy efficiency, the Group aims to achieve the goals of its Sustainability Plan.

PROTECTION
OF WATERRESOURCES

Excessive consumption of water in water-stressed areas threatens the regional hydrological balance and results in
scarcity of water resources. Intensive industry — often inefficient – contributes to a reduction in water availability
and degradation of water quality, with an impact on the environment and on the access to potable water. Awareof the importance of preserving this fundamental resource, as part of its Environment and Energy Management
System Brembo has implemented a Water Management procedure that imposes requirements and restrictions on
all the Group’s plants for sustainable use and protection against pollution. The Group has also set itself the goal ofreaching 100% monitoring of flows (withdrawal, discharge and significant internal use) by 2025 at each of its sites
in order to implement improvement actions.

WASTE
MANAGEMENT

Inadequate waste management by the Group could result in soil pollution, harm to natural resources and threats
to biodiversity. In addition, a lack of attention to waste recycling/recovery and the consequent sending of waste todumps could contribute to soil consumption. Brembo Group is dedicated to efficient waste management, avoiding
generating negative impacts on the environment and actively seeking to reuse and develop waste materials.
The Group has set itself the goal of increasing the percentage of waste to be recycled.

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2.5 Materiality Analysis

PROTECTION OF
BIODIVERSITY

The extraction of primary raw materials may contribute to deforestation and environmental pollution. In addition,
the surface extension of extraction sites, as well as the presence of buildings and plants, entail soil consumption,
which may result in biodiversity loss. With regard to its plants, Brembo has identified a need to act in a way that
contributes to maintaining and protecting biodiversity near its assets. The first step involved an analysis to define
and apply a biodiversity screening methodology to the geographical areas in which its manufacturing plants
are located. The second step will be defining any improvement, prevention and mitigation actions.

EVINRONMENTALLYSUSTAINABLE
PRODUCTThe design, production and use of products aimed at reducing environmental impact throughout their life
cycle involves minimising the use of natural resources, limiting greenhouse gas emissions and reducing waste
generation. This entails the adoption of recyclable materials, the optimisation of production processes toreduce energy and greenhouse gas emissions and the promotion of ethical, socially responsible practices. The
sustainability of such products is also manifest in their durability and ease of disposal or recycling at the end of
their useful lives. Within the framework of this philosophy, Brembo integrates environmental performances into its
products, developing braking systems with low particulate and CO2 emissions, while also enhancing the durability
and recyclability of materials. Brembo’s commitment to reinforcing the development of innovative products,
featuring environmentally sustainable, circular designs, translates concretely into promoting sustainable mobility
through the reduction of polluting emissions thanks to its advanced braking systems and the Group’s commitment
to subjecting all its products to a Life Cycle Assessment (LCA). plants are located. The second step will be defining
any improvement, prevention and mitigation actions.

DIVERSITY,
EQUITY AND
INCLUSION

Brembo firmly believes that people must have equal access to work, facilities, services and programmes, solely on
the basis of their knowledge, qualifications, expertise, performance and motivations, regardless of other personal
conditions. In recognition of this responsibility, Brembo adopts an active, concrete policy in these areas, reflected in
its Policy on Non Discrimination and Diversity, as well as in the Brembo Charter on Diversity, Equity and Inclusion.
In particular, the Group is committed to promoting these aspects along the three main axes (gender, generationand cultural background) through concrete projects that contribute to the wellbeing of the Group’s people.

PROTECTION OF
HUMAN RIGHTS

The protection of human rights requires policies and practices against exploitation and discrimination, bothinternally and throughout the value chain. Brembo, which is committed to respecting the rights of its workers,
also extends this commitment to its suppliers, requiring that they abide by its Sustainable Procurement Policy in
all Countries in which it operates. The Group pays attention to the direct purchase of minerals from conflict zones,
asking its suppliers to declare the origin of Conflict Minerals in supplies intended for the Group. Moreover,the Group conducts audits to ensure respect for human rights among its suppliers.

WORKERS’HEALTH AND
SAFETY

Employment in the automotive industry exposes workers to potential risks and permanent harm due to the lack ofadequate safety measures. This risk also extends to workers upstream and downstream the value chain, increasing
the probability of serious physical injuries associated with work activities. In response to this problem, the Grouphas implemented an ISO 45001 management system at all its plants, in addition to promoting a culture of safety
through its “I Am Safety” campaign in Italy and China. Throughout its supply chain, Brembo’s sustainability policy,
included in its Sustainable Procurement Policy, sets specific requirements to ensure protection of health and safetyin suppliers’ workplaces.

WELLBEING OFPERSONNEL

If the Group were not to ensure compliance with minimum wage and employee welfare, this would result
in deterioration of the working conditions and well-being of its employees, entailing an increase in personnel
turnover. Failure to monitor practices throughout the value chain could encourage incorrect behaviour, thus
causing damages to third-party workers. In response to these challenges, the Group has intensified its vigilanceover the job market, focusing on pay for critical roles and reinforcing its methods of monitoring outgoing
personnel and voluntary resignations. In addition, it actively promotes employee health, not only through initiatives
relating to the workplace, but also through programmes providing information on healthy lifestyles and courses
on proper nutrition, such as the Brembo Wellness programme.

TRAINING AND
DEVELOPMENT
OF PERSONNEL

The implementation of policies and investments in employee training not only ensures the development of
the Group’s resources, but also contributes significantly to increasing the innovative skills required to respondpromptly to the demands of the business. Within this framework, Brembo adopts a specific procedure for
effectively managing training and development offerings, designed to be increasingly global and inclusive, fromthe annual survey and analysis of training needs to attentive monitoring of quality indicators for the training
provided.

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2. Sustainability

DATA
PROTECTION
AND IT SECURITY

The implementation and application of digital security systems are absolutely essential to preventing the risk ofdata breaches and cyberattacks, which could have severe consequences, including privacy breaches and the lossof sensitive customer data. In order for the Group to manage such threats effectively, it is fundamental to adopt
policies and advanced technologies that take a proactive approach to protecting digital data. The Brembo Group
has thus set up a Privacy Supervisory Committee, and has introduced the position of Data Protection Officer andof specific Privacy Officers for each area of the company. These professionals operate in strict compliance withpersonal data protection legislation, following specific procedures to handle issues, obligations, new processing
and reporting, while ensuring maximum security and regulatory compliance.

PRODUCT
SAFETY

Product safety is a fundamental priority for ensuring that the design, manufacture and marketing of products
adhere to strict safety standards. This commitment entails the implementation of robust quality control processes
during production, active risk management and compliance with applicable legislation, in order to prevent
accidents or damages arising from the use of products by consumers. This approach is crucial to preserving
the company’s reputation, protecting consumers and complying with applicable safety legislation. Following a
preventive and proactive approach, Brembo is committed to applying the voluntary technical standards thatnational and international standards bodies have developed to ensure the production of excellent products, while
guaranteeing safety, quality and certain performance. In addition, through the use of innovative technologies,
Brembo seeks to improve the performance of its braking systems, while continuing to offer its end users theutmost reliability and safety.

PROTECTIONAND
DEVELOPMENT
OF LOCALCOMMUNITIESThe presence of manufacturing plants and extraction sites disfigures the landscape, with adverse impacts, invisual and other terms, for local communities. The company’s commitment to the well-being of local communities
translates into active management to protect the interests and health of people in the affected areas. At thesame time, companies contribute to economic and social development, promoting job opportunities, developing
local skills and taking an active part in community initiatives. Responsible relationship management is essential
to consolidating trust and ensuring a positive impact. Brembo Group’s global presence offers a significant
opportunity to improve external positive impacts through the transfer of investments, technology and skills.
The Group actively promotes the growth of local ancillary industry, supporting infrastructure, jobs and training
programmes and recognising the importance of fostering intellectual capital in its districts. It also makes its knowhow available, reinforcing its commitment to social responsibility and sustainable development in the surrounding
communities.

SUSTAINABLE
SUPPLY CHAIN

Responsible, sustainable management of the supply chain focuses on an ethical, transparent approach respectfulof human rights, social fairness and the environment. The Brembo Group asks all suppliers operating in Countries
in which it is present with its plants to comply with the Sustainable Procurement Policy. This Policy concerns
key issues, including respect for human rights, environmental protection, workplace safety, and prevention ofcorruption. In addition, verification programmes, audits, monitoring, training sessions and corrective measures
are also implemented in cooperation with suppliers to ensure a sustainable supply chain aligned with high ethicalstandards and corporate responsibility.

BUSINESS ETHICS
AND INTEGRITY

Non-compliance with business best practices, such as unfair competition and a lack of reliable tax risk governance,
control and management systems can cause damage to the economy and result in violation of laws andregulations. Insufficient supervision of company ethics and integrity could foster phenomena of corruptionin tenders and supply contracts for both companies and individuals. Brembo has implemented various tools,
including the Organisational, Management and Control Model (according to Legislative Decree No. 231/2001),
the Anti-bribery Code of Conduct, the Supervisory Board and an entities’ administrative and criminal liability
compliance programme in accordance with applicable local legislation of Countries where it operates throughsubsidiaries.

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2.5 Materiality Analysis

DOUBLE MATERIALITY

As previously anticipated, ESRS (European Sustainability Reporting Standards, which will become effective with the Corporate Sustainability Reporting Directive) for the Brembo
Group’s Sustainability Report at 31 December 2024 require
to report on sustainability issues on the basis of the double
materiality principle: impact materiality (“inside-out” perspective) and financial materiality (“outside-in” perspective).

In advance of compulsory application of the ESRS, Brembo decided to conduct a voluntary financial materiality
assessment.
The material topics and impacts identified through the impact materiality were inputs to define operating and financial risks and opportunities.

FINANCIAL MATERIALITY – THE “OUTSIDE-IN” PERSPECTIVE

The financial materiality analysis is aimed at identifying
the risks and opportunities that have, or may have, a significant influence on the Group’s operating and financial
performance.
In particular, the risks and opportunities consider uncertain environmental, social or governance events or conditions that, were they to occur, could cause a potential
material negative or positive effect, respectively, on thecompany’s business model or strategy and sustainability
strategy, or its capability to achieve its goals and targets
and create value, and therefore may influence its decisions and those of its business relationships as regard tosustainability matters.
In order to identify the material risks and opportunities for
Brembo, the following inputs were taken into account:•••Impacts generated by Brembo and mapped in the impact materiality;
Impacts or risks arising from Group’s actions aimed ataddressing sustainability matters;
Brembo’s dependence on natural, human and social
resources. Dependencies may trigger risks and opportunities in two possible ways:– By influencing the company’s ability to continue to use
or obtain the resources required for its company processes, as well as the quality and price of such resources;•– By affecting the company’s ability to rely on the relationships necessary to its business processes at acceptableconditions.
Risks and opportunities already mapped by the Group’s
Risk Management (such as the ERM Report and Climate
Change Risk Assessment)

The analyses made it possible to identify a universe of risks
and opportunities that were then broken down into materiality classes on the basis of the combination of the probability of occurrence and potential magnitude of the related
financial effects.
As for impact materiality, a materiality threshold was also
defined in this case, making it possible to identify the mostsignificant risks and opportunities. Finally, these most significant risks and opportunities were associated with theBrembo material topics, thus making it possible to obtain,
for each topic, a bi-dimensional representation within adouble materiality matrix.
The proposed double materiality, assessed in advance by
the CSR Committee on 13 December 2023, was sharedwith the Audit, Risk & Sustainability Committee, the Supervisory Committee and the Board of Statutory Auditors
during the meeting held on 18 December 2023 and was
subsequently submitted for approval to the Board of Directors on 19 December 2023.

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2. Sustainability

Very material

DOUBLE MATERIALITY – BREMBO GROUP’S MATERIALITY MATRIX

Polluting emissions

Greenhousegas emissions

Workers’ healthand safety

Diversity, equity
and inclusion

Training anddevelopmentof personnel
Wellbeingof personnel

Waste management

Environmentally
sustainable productProtectionof water resources

Sustainablesupply chain
Data protection
and IT security

IMPACT ASSESSMENT

Business ethics
and integrity

Energy efficiency

Product safety

Protectionof human rights

Protectionof biodiversity

Material

Protection anddevelopmentof local communities

Material

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Annual Sustainability Report 2023

FINANCIAL ASSESSMENT

Very material2.6 Turning Sustainability into Action

2.6 T
 URNING SUSTAINABILITY
INTO ACTION

Brembo faces today’s challenges collaborating with various stakeholders to create solutions that have a positive
impact on the environment, economy and people, on along-term horizon. To bring the Group’s growth into linewith that of the Countries in which its production sites
are located, Brembo continues to pursue its Sustainability Plan: “Turning Sustainability into Action”. This clear,concrete strategy conducted by the CSR function also
involved the Top Management in setting targets, considering industry best practices and the main global ESG
trends. These targets, which are primarily quantitative,
are organised into five strategic areas that refer to thematerial topics in order to ensure the consistency of thePlan and the Disclosure of Non-Financial Information, as
well as greater accountability of management. The related targets were updated in 2023.
It should be noted that the goals published in the Sustainability Plan, and in this document, are a selection of thegoals and targets that Brembo pursues and that refer toits various functions.
Through the “We support SDGs” project as well, the Brembo Group pursues a sustainable strategy and adopts an
integrated business model that allow to contribute toreaching all the 17 UN sustainable development goals.
Reaching the Net Zero emission objective by 2040 is among
the Brembo’s Sustainability Plan objectives aimed at reducing the environmental impact. The Group is aware that
this necessarily entails a deep change in the industry, notonly in terms of energy savings. It is precisely for this reason that “Turning sustainability into action” also provides
for objectives connected with waste disposal procedures.
Moreover, Brembo is committed to strengthening the development of innovative products designed from the be-ginning with an eco-sustainable and circular approach.
The Group is thus committed to expand the product families included in the Life Cycle Assessment (LCA).
Since it operates in an international, multicultural context, through the Plan Brembo also aims to underscorethe importance of diversity as capital to be enhanced byinvesting in awareness-raising projects and processes thatstrengthen the culture of diversity, equity and inclusionand create opportunities for dialogue and sharing among
both colleagues and members of the local communitythat foster the exchange of ideas and opinions. Other
goals relate to activities involving active engagement of
individuals to support the creation of an inclusive, positive and safe work environment. The ambition is to makeindividuals the focus of every process, in an environment
in which employees are proud of what they do and getalong with their coworkers.
Brembo regards the relationship with its value chain as
an important occasion for collaboration and a mutual
opportunity for growth and enrichment. In this sense,
the Plan provides for an ever greater involvement ofcustomers and suppliers in a community perspective
but also of synergistic fusion of skills and best practice.
Brembo is therefore committed to favouring a local supply chain and selecting its suppliers according to sustainability-based criteria.
These measures converge towards a product range thatis in line with the company principles and values described above. An activity that thus translates into clear
communication of Brembo’s actions in pursuit of sustainable development, through an extensive, consistentcommunications campaign based on press releases, interviews and various content, such as speeches, lettersand videos.

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2. Sustainability

An excerpt of the Group Sustainability Plan is reported below.
MATERIAL TOPICSTARGET DESCRIPTIONBASELINESITUATION IN 2023

TARGET

Greenhouse
Gas Emissions
EnergyEfficiency

1. Net Zero emissions at Group level
Scope 1 and market-based Scope 2
Scope 3

FY 2020:34
371,903 tCO2e
1,662,708 tCO2e

280,887 tCO2e2,195,728 tCO2e35-42% by 2030
-90% by 2040

2. Reduction of indirect absolute emissions(market-based Scope 2)

FY 2020:31
298,736 tCO2e

174,426 tCO2eq-100% by 2030

3. % increase of renewable electricity

FY 2020:
43%

75%+70% by 2025
+100% by 2030

4. CO2 emissions avoided compared to theemissions generated in the previous year36

FY 2022:
288,848 tCO2eq

31,7%≥20% by 2023

5. % increase of recycled waste

FY 2022:85%

88%≥90% by 2025
≥95% by 2030

Environmentally
Sustainable
Product

6. Performance of LCAs (Life Cycle Assessment)on several product families

FY 2021:
4%

21%

100%
by 2027

Diversity,
Equity andInclusion

7. Promoting diversity and inclusion withregard to the three main Brembo axes
(gender, generation, cultural background)through the implementation of projects andinitiatives relevant for the Group and/or local
communities

FY 2022:5 initiatives

6 initiatives

At least 5 initiatives
per yearTrainingand developmentof personnel

8. Mitigating unconscious biases, overcoming
stereotypes and supporting the developmentof an inclusive working environment inview of a “new normal” dimension, whilestrengthening these aspects in both existingand new training courses (managerial training)

FY 2021:20%

100%

Renewal ofmanagerial training
paths enrichedwith short training
pills dedicated tounconscious biases
100%

34 FY2020 baseline was restated to include the contribution, in terms of emissions, of J.Juan and SBS Friction and the update of the calculation methodology of several emission categories..
35 Scope 3 emissions increased compared to 2020 following a significant growth of production volumes
36
Reduction of emissions Scope 1 & 2 market-based obtained thanks to improvement actions≥20%
emissions Scope 1 & 2 market-based for the previous year

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2.6 Turning Sustainability into Action

MATERIAL TOPICSTARGET DESCRIPTIONBASELINESITUATION IN 2023

TARGET

Training
and Developmentof Personnel

9. Ensuring that employees remain strongly
motivated to participate in company life
through extensive participation in the Global
Engagement Survey

FY 2021:78%

Global Engagement
Survey to be held by
the end of 2024

Ensuring a ≥74%
response
rate at Group levelby early 2025

10. Maintaining a high level of engagement

FY 2021:66%

Global Engagement
Survey to be held by
the end of 2024

Index is maintained
at a level ≥ 65% byearly 2025

11. Ongoing improvementof the “Incident Rate” (I.R.37)

FY 2022:
0.66

-17%

-10% YoY – Target
relating to all theGroup’ employees
Yearly12. Provision of hours of training (classroom
and mentoring)/awareness-raising
initiatives on H&S topics - all categories(average per capita)

FY 2022:6h3h38

Business
ethics andintegrity

13. Communicating Brembo’s actionsin the ESG area on objective
and measurable criteria

FY 2022:
Not available

Definition of themethodology relating
to the CSR content
communication
process, currently
being formalised

Definitionof a communication
methodology
by 2024

Sustainablesupply chain

14. Extending the assessment and monitoringof the supply chain in the CSR area

FY 2020:
70%

78.2%

80% of the turnoverof the directmaterial relevant
suppliers by 2026

15. Favouring a Supply chain based in theCountries in which Brembo operates throughproduction sites (Local for Local Index)

FY 2020:87%

90.6%39

Ensuring the maintenance of the Local
for Local Index >85%
by 2030

Workers’
Healthand Safety≥5h
by 2025

37 Incident rate: (No. of work-related injuries/ No. of hours worked) x 200,000.
38 2023 did not present the same training hours as 2022, which was characterised by a high number of new personnel from outside the company entailinga significant investment in the initial training, especially with reference to Safety and the Environment training.
39 This includes the costs of purchasing goods and services directly involved in the manufacturing of finished products, namely purchases of: raw materials, components, semi-finished and finished products, ancillary materials and services (mostly transport, utilities, packaging and MRO). The scope of analysis was expanded
to also include the provision of services not closely associated with production, such as the costs of ICT and telephony, cleaning, security and canteen services.
Tax and legal advice, insurance, sponsorships, business travel, recruitment and training activities, building leases and industrial assets are excluded.

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2. Sustainability

2.7 THE UNITED NATIONS 2030 AGENDA

THE GLOBAL AGENDA FOR SUSTAINABLE DEVELOPMENT AND SUSTAINABLE DEVELOPMENT GOALS (SDGS)On 25 September 2015, the governments of the 193 United Nations member states signed the 2030 Agenda for
Sustainable Development, containing 17 Sustainable Development Goals (SDGs). The SDGs are a “call to action”
for all member states to promote sustainable development for the benefit of people, the planet and prosperity.
The Agenda is structured around three key pillars: acting for people (eradicating poverty), acting for the planet(adopting conscious consumption and production) andacting for prosperity (ensuring the economic, social andtechnological progress for all humanity).
The 17 SDGs consist of 169 targets to be reached by 2030
and all countries and individuals are called upon to contribute, developing sustainable development strategies
and involving all components of society. Businesses aswell are called upon to have an active role, using theirresources and skills to make a contribution to achieving
the SDGs.

To learn more about:
United Nations Sustainable Development Goals
https://www.un.org/sustainabledevelopment/

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2.7 The United Nations 2030 Agenda

In accordance with international best practices, Brembo
has identified the links between the priorities defined in
the materiality analysis and their impact on the Global
Agenda’s goals, using the “Linking the SDGs and the GRI

Standards” (Global Reporting Initiative, May 2022 update)document, developed by GRI and the UN Global Compact.

GREENHOUSE GAS EMISSIONSWORKERS’ HEALTH AND SAFETYPOLLUTING EMISSIONSWELLBEING OF PERSONNEL

ENERGY EFFICIENCYTRAINING AND DEVELOPMENT OF PERSONNELPROTECTION OF WATER RESOURCESDATA PROTECTION AND IT SECURITY

WASTE MANAGEMENTPRODUCT SAFETY

PROTECTION OF BIODIVERSITYPROTECTION AND DEVELOPMENT OF LOCAL COMMUNITIESENVIRONMENTALLY SUSTAINABLE PRODUCTSUSTAINABLE SUPPLY CHAIN

DIVERSITY, EQUITY AND INCLUSION

BUSINESS ETHICS AND INTEGRITY

The result of this activity is summarised in the table below.

PROTECTION OF HUMAN RIGHTS

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2. Sustainability

WE SUPPORT SDGS: SUSTAINABILITY CULTURE CONTINUED TO BE DISSEMINATED

O CODEMPROMISSODA BREMBO
DE

支持非政府组织MAHER，
照顾贫困人群（印度）A RESPOSTA DO GRUPO PARAA EMERGÊNCIA COVID-19

Maher是一家跨宗教、无种姓的非政府组织，为贫困的妇女儿童提供庇护和援助，并在印度 西部的多个村庄开展社
区发展计划。Maher目前在58个不同的住所中收容了大约1000名儿 童、100名男子和350多名妇女，地点位于浦那
及其周边地区、马哈拉施特拉邦、贾坎德邦、 喀拉拉邦。这家非政府组织由Lucy Kurien修女在1997年创立，她是
一位伟大的女性，无私 地帮助那些最需要帮助的人，并因此获得重要奖项。从健康和经济的角度来看，由于大流行
病的疫情形势不断恶化，布雷博更加需要为Maher收容之家的工作提供支持。

目标• 主要为贫困和被遗弃的妇女儿童提供收容和庇护。

Desde o início da emergência epidemiológica, a Brembo soube reagir imediatamente focando na saúde detodos os seus colaboradores como objetivo prioritário, garantindo a segurança das fábricas, ajudando as
comunidades locais com a distribuição de material médico e apoiando a pesquisa científica contra o vírus.
OBJETIVO• Proteger os funcionários do Grupo.
• Gerenciar imediatamente a emergência sanitária e econômica.
• Apoiar o território e a comunidade.

• 发展浦那周边偏远村庄和贫民窟的社区福利。
行动
• 向数百名失去工作并返回原籍村庄的打工人员及其家人分发膳食。

AÇÕES• Elaboração de medidas extraordinárias de combate ao vírus e proteção da saúde de seus
colaboradores.

• 收集并分配提供给贫民窟居民的口粮。

• Monitoramento constante dos impactos nos negócios, com particular enfoque na cadeia
de abastecimento.

• 帮助感染新冠病毒的父母照顾他们的孩子，因为这些孩子面临在街上流浪，没有食物或监护的处境。

成果• 为浦那周边超过85个农村社区提供支持。
• 向各个年龄段的40名儿童提供照顾和食物，直到他们感染新冠病毒的父• Doação de 1 milhão de euros a três excelências italianas: O Hospital Papa Giovanni
XXIII, a Fundação para a Pesquisa do Hospital de Bergamo (FROM) e o Instituto de
Pesquisa Farmacológica Mario Negri, em apoio à pesquisa para enfrentar a emergência
epidemiológica.
RESULTADOS• Prevenção, controle e contenção da pandemia em todas as sedes Brembo.
• Garantia de uma retomada da atividade empresarial com total segurança.

了解更多：
www.maherashram.org• Suporte para o território e à pesquisa.

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L’IMPEGNO DI BREMBOZOBOWIĄZANIEBREMBOSVILUPPO DI PRODOTTI, SOLUZIONI E
PROCESSI SEMPRE PIÙ SOSTENIBILIPROJEKT SOSTENIAMOCI 2, PROMOWANIE INTEGRACJISPOŁECZNEJ MŁODYCH MIGRANTÓW (WŁOCHY)

Da sempre Brembo opera secondo valori e principi ben radicati di rispetto dell’ambiente e delle persone e intenderafforzare l’impegno alla sostenibilità anche con i propri prodotti, contribuendo alla riduzione delle emissioni.
OBIETTIVO• Sviluppare prodotti, soluzioni e processi sempre più sostenibili, mantenendo alte le prestazioni e
distintivo lo stile.
• Ridurre l’impatto ambientale in frenata.

SOSteniamoci, co po polsku znaczy „Wspierajmy się”, to projekt rozpoczęty w 2016 roku przez fundację Cesvi wewspółpracy z Brembo i Centrum do Spraw Opieki nad Młodzieżą i Rodziną w Bergamo, którego celem jest wspomaganie iwspieranie młodych cudzoziemców, którym nikt nie pomaga w realizacji planów życiowych, a także ułatwianie im integracji
społecznej oraz osiągnięcia niezależności finansowej. Zakończyła się już druga, trwająca dwa lata, edycja projektu.
CEL• Wsparcie w procesie przyjęcia i integracji społecznej 19 cudzoziemców, wśród których znalazły sięosoby niepełnoletnie oraz takie, które dopiero co osiągnęły pełnoletność.
• Rozwijanie indywidualnych zdolności w pełnym poszanowaniu ambicji każdego z uczestników.

AZIONI• Greentive®: sviluppo di un nuovo disco che, grazie al rivestimento applicato sulla superficie frenante,garantisce un’usura molto bassa, prolungando significativamente la durata del prodotto e riducendo
allo stesso tempo le emissioni di polveri durante la frenata.
• Introduzione di una nuova tecnologia di rivestimento che può essere applicata sulla fascia frenantedi tutte le tipologie di dischi Brembo.
• Enesys, Energy Saving System®: sviluppo di una nuova molla che riduce possibili contatti residui trale pastiglie e il disco quando un autista non sta frenando, favorendo la riduzione delle emissioni edello spreco di energia e garantendo un aumento delle performance del veicolo.

• Podarowanie szansy na realizację planów życiowych we Włoszech.
DZIAŁANIA• Nauka języka włoskiego oraz uczestnictwo w kursach edukacji obywatelskiej w celu ułatwienia
integracji społecznej we Włoszech.
• Uczestnictwo w szkoleniach dobranych indywidualnie w zależności od zdolności i aspiracji każdego
uczestnika, które zostały ocenione poprzez bilans umiejętności.
• Korzystania z oferty staży i doradztwa zawodowego w celu uzyskania wsparcia przy aktywnym
poszukiwaniu pracy.

• Progetto AFFIDA: sviluppo di un nuovo materiale d’attrito che, grazie all’utilizzo di leganticompletamente inorganici, garantisce un azzeramento delle sostanze organiche volatili emesse inproduzione e una riduzione delle emissioni di particolato in frenata.

WYNIKI• 15 młodych migrantów biorących udział w projekcie zostało wprowadzonych na rynek w pracy,spośród których dwie osoby rozpoczęły pracę w tej samej firmie, w której odbywały staż.

RISULTATI• Mantenimento delle prestazioni sempre ai massimi livelli, con una particolare
attenzione alla sostenibilità e allo stile.

• 4 młodych migrantów skorzystało z indywidualnego doradztwa zawodowego przy aktywnym
poszukiwaniu pracy.

• Riduzione delle emissioni e dello spreco di energia in fase di frenata.

Więcej informacji znajdziesz w video od Numeruomini• Diminuzione dell’usura di disco e pastiglia, prolungando la durata dei prodotti eriducendo i bisogni di manutenzione.

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In particular, the Group launched an application campaign
to invite people to discuss a best practice that is part of their
daily lives to be shared in a short video as an example to follow: concrete little gestures in pursuit of sustainability. Fromthe proposals received, a dedicated team selected the daily
actions most pertinent to the criteria of feasibility, replicability and consistency with the Sustainable Development Goals,
dividing them into the five areas that contribute to sustainability: Planet, Prosperity, Peace, People and Partnership. The
videos were published periodically on internal communications channels (plant TV and the Red Portal intranet) and external communications channels (Brembo's official website
and social media), in addition to being included in a newformat focusing on the 17 Sustainable Development Goals,
to discuss the concrete, daily contribution of Brembo people
alongside the Company's commitment.

布雷博的努力

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In July 2022, the first part of the campaign which analysedeach of the goals and the related Brembo project was completed. The second part of the campaign was launched in
September 2022 and continued in 2023 to spread awareness of the Group’s commitment and disseminate andshare the knowledge of all those best practices that men
and women working at Brembo already adopt in their daily
private and working lives to contribute to the SDGs. These
are the bases for the initiative “Put Your Face On It”, centered on the stories of Brembo People who act as ambassadors for sustainable action.

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In line with the indications of the SDG Compass — a guidefor companies in implementing the 2030 Agenda, theGroup believes that its commitment to achieving the Sustainable Development Goals must begin with spreadingand promoting the SDGs to all people. This conviction gaverise, as of 2019, to the “We Support SDGs” project designed
to spread knowledge of the goals and raise awareness regarding sustainable actions.

KONEC
HLADU

The message that the Group wishes to send can be summarised by the Helen Keller’s quote: “Alone we can do little.
Together we can do a lot.” Each of us is fundamental to building a sustainable tomorrow, and Brembo wishes to engage
its People so that they feel they are a part of this project.
The campaign is intended to be a virtuous contaminationthat can extend beyond company confines.
To learn more about:https://www.brembo.com/en/sustainability/brembo-2030.

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Annual Sustainability Report 2023ZÁVAZEKSPOLEČNOSTI BREMBOSYSTÉM PRO ZARUČENÍ INTEGRITY
PŘI PROVOZOVÁNÍ PODNIKATELSKÉ ČINNOSTI
Společnost Brembo vždy definovala hodnoty, které jsou základem jejího vlastního jednání, s cílem rozvíjet, sdílet a
prosazovat chování podporující udržitelný růst a šířit tak skutečnou kulturu integrity. Na podporu preventivní politiky
skupiny proto společnost Brembo zavedla systém globálního a integrovaného dodržování pravidel a vybavila se nástroji,jejichž cílem je zaručit vysoký etický standard.
CÍL• Podpořit přijetí efektivního a transparentního systému vedení.
• Rozvíjet a šířit základní hodnoty společnosti.

AKCE
Dále jsou uvedeny některé kodexy společnosti Brembo:• Etický kodex: formuluje normy chování, jimiž musí být vedena činnost všech, kdo z jakéhokoli důvodu
pracují pro společnost Brembo, v souladu s hodnotami sdílenými v rámci skupiny.
• Kodex protikorupčního chování: zaručuje zásady transparentnosti a definuje jasná pravidla chování
v souladu s platnými protikorupčními předpisy.

BREMBO’SCOMMITMENTCOLLABORATIONS TO IMPROVE THE ENVIRONMENTAL
IMPACT OF PROCESSES AND PRODUCTS
Among its primary objectives, the innovation of Brembo products includes the reduction of environmental impact, linked
to the production of the raw materials employed, the generation of fine dust, and greenhouse gas emissions produced
by vehicles when braking. This is the context surrounding the “Life-CRAL” project, launched by the European Union in
July 2016 and coordinated by Brembo, in collaboration with technical partner Cannon Ergos.
TARGET• Develop an innovative production line that allows for the manufacture of high quality and lighter
weight aluminum and magnesium components from recycled or highly impure materials.

ACTIONS• Preliminary tests on a laboratory casting machine.
• Careful selection of materials and design of a pilot production line.
• Final installation and validation of the pilot production line.
• Manufacture of a wholly recycled aluminum caliper and of a prototype magnesium brake lever.

• Vzor 231 a Místní příručky dodržování pravidel / Brembo Compliance Guidelines: popisují pravidla
chování a zásady kontroly s cílem předcházet jednání, které by mohlo zakládat trestní odpovědnost
podniku.

• Successful road endurance test (2000 km / 1,200 mi.).

• Kodex chování pro dodavatele: představuje závazek ze strany dodavatelů přijmout stejné chování,jaké definovala skupina Brembo v oblasti udržitelnosti, a převést je do svého dodavatelského řetězce.

RESULTS• The use of aluminum deriving from the recycling process makes it possible to:
1. avoid the consumption of energy and resources related to the extraction, refining and production ofprimary aluminum;
2. reduce CO2 emissions by 94%.

VÝSLEDKY• Podpora udržitelného růstu a ochrana dobré pověsti společnosti.

• Environmental impact assessment of the CRAL process in order to meet EC policies.

• Šíření kultury integrity ve vztazích a v chování.

• The innovative production line guarantees the elimination of greenhouse gas
emissions linked to the magnesium melting process.

Více informací:brembo.com - sustainability - ESG - governance - codes and policies

For more information:www.cralproject.eu

COMPANY STRUCTURE

45%

PROPORTION
OF WOMENIN THE BoD*

ROBUST
AND STRUCTURED
GOVERNANCE
Well-defined roles and competencies are the basis ofan efficient and constantly evolving organisation.
Structured, robust, transparent and open-to-change governanceremains a cornerstone in a rapidly changing scenario.

* Minimum quota of the less-represented gender in the corporate bodies of listed companies (Law No. 160 of 27 December 2019),
in force at the date of appointment of the Board of Directors (General Shareholders’ Meeting of 20 April 2023) for the 2023-2025 term.

3,090BREMBO’S EMPLOYEESTRAINED ON THE CODE
OF ETHICS IN 2023

100%

ISO 27001
CERTIFIED SITES**** The ISO 27001 certified sites are: the three Italian sites of Brembo S.p.A. (the headquarters, the Curno and Mapello production hubs), La.CAM S.r.l.,Brembo SGL Carbon Ceramic Brakes S.p.A., the three Brembo Poland Sp.z.o.o. production hubs and Brembo Czech s.r.o.

3. Company Structure

3. COMPANYSTRUCTURE
3,090

Brembo’s employees
trained on the Codeof Ethics in 2023

45%

40

Proportionof womenin the BoD

11Annual meetingsof the Audit, Risk
& Sustainability
Committee (ARSC)

36.4%

Members of the BoD
with ESG-related skills

100%

41

ISO 27001
certified sites

3.1 CORPORATE GOVERNANCE MODEL4041
Brembo, a company which has been listed at the Milan
Stock Exchange since 1995, has structured a sound Corporate Governance Model based on the ongoing alignmentof its corporate structure with the best international practices, through which it meets the interests of all its stakeholders effectively. Over the years, particular attention
was also devoted to updating its own reference codes andimproving processes for managing both operating andsustainability risks.
Accordingly, the Corporate Governance System of theBrembo Group has always been inspired by and fully implements the recommendations issued from time to timeby the Corporate Governance Committee42, which — in
their most recent version43 — have been incorporated into
Brembo’s Corporate Governance Code (hereinafter also re-ferred to as “Brembo CGC”), as well as in the Regulations of
the BoD and the rules of Board Committees.
As early as March 2020, the Group followed the evolution
and the interpretative discussions on the 2021 CGC, actively
taking part in the many alignment and analysis meetingsorganised by ASSONIME for detailed exploration of all aspects of the new Code.
Following the above in-depth analysis, on 17 December
2021 the Board of Directors of Brembo thus approved
Brembo’s Corporate Governance Code, which incorporates
all the principles and recommendations of the 2020 CGC,
examined and evaluated by the BoD on the basis of theprinciple of the prevalence of substance over form andalso of the "comply-or-explain" principle which provides

40 Minimum quota of the less-represented gender in the corporate bodies of listed companies (Law No. 160 of 27 December 2019), in force at the date of
appointment of the Board of Directors (General Shareholders’ Meeting of 20 April 2023) for the 2023-2025 term.
41 The ISO 27001 certified sites are: the three Italian sites of Brembo S.p.A. (the headquarters, the Curno and Mapello production hubs), La.CAM S.r.l.,Brembo SGL Carbon Ceramic Brakes S.p.A., the three Brembo Poland Sp.z.o.o. production hubs and Brembo Czech s.r.o.
42 The Corporate Governance Committee is made up of associations of businesses (ABI, ANIA, Assonime, Confindustria), professional investors (Assogestioni) and Borsa Italiana. Its institutional purpose is to promote good corporate governance of listed Italian companies through the 2020 Corporate
Governance Code and the monitoring of its application
43 The 2020 Corporate Governance Code (effective from 1 January 2021 – hereinafter referred to in short as “2020 CGC”

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3.1 Corporate Governance Modelfor the the comply-or-explain principle which provides forthe possibility, where a non-compliance is identified in an
entity’s actions with respect to a regulatory requirement,
to remedy such circumstance, by explaining the choice
adopted.
It should be noted that the Brembo CGC includes deviations44 with respect to the 2020 CGC. Nonetheless, theseare due to the fact that the practices recommended by the2020 CGC were deemed as not functional or not compatible with Brembo’s current governance model.

The description of the individual deviations and the related reasons is included in the Corporate Governance andOwnership Structure Report of each year and in the Report on the Remuneration Policy and Remuneration Paidwith reference to Remuneration-related deviations.
The concrete application of the principles and recommendations provided for by the 2020 CGC is illustrated in the2023 Corporate Governance and Ownership Structure Report (Paragraph 3).

CROSS-BORDER CONVERSION

During the meeting held on 20 June 2023, the Board resolved to submit to the General Shareholders’ Meeting the
proposal of:ny with permanent representation pursuant to article
2508 of the Italian Civil Code;
Hereafter in short the “Transaction”.

•

The Transaction was approved by the Extraordinary Shareholders’ Meeting of Brembo on 27 July 2023 and will be effective on 24 April 2024.

•

•

•

adopting the legal form of a public company with limited liability (naamloze vennootschap) — substantiallyequivalent to the corporate type of joint-stock company(società per azioni) under Italian law — governed by
the laws of The Netherlands, resulting in the assumption of the name “Brembo N.V.”;
adopting a new text of the articles of association in accordance with laws of The Netherlands that provides
for the adoption of a special voting mechanism pursuant to the dutch laws;
transferring its registered office to Amsterdam, The Netherlands, while retaining its tax residence in Italy andwithout any reorganisation of its operating activities andpeople, who will continue seamlessly to operate in Italy
through the establishment of a secondary office;establishing in Italy a secondary office of the Compa-

As part of this Transaction, on 12 January 2024 the Company proceeded with the voluntary Share Capital Decrease,from €34,727,914.00 to €3,339,222.50 (instrumental to theTransaction), as the disbursement amount condition, uponwhich the completion of the Transaction was conditional,
had been met. For further details see page 97.
For further details on the foregoing, reference should bemade to the press releases published on the Company’s
website (www.brembo.com, section “Investors”, “For Shareholders”, “Registered Office Relocation”).

44 The description of the individual deviations and the related reasons is included in the Corporate Governance and Ownership Structure Report of eachyear and in the Report on the Remuneration Policy and Remuneration Paid with reference to remuneration-related deviations.

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93

3. Company Structure

Brembo S.p.A. has adopted a traditional governance andcontrol system. Consequently, the Board of Directors is responsible for managing the Company, the Board of Statutory Auditors is responsible for supervisory functions, andthe Independent Auditors appointed by the General Shareholders’ Meeting are responsible for auditing and accounting control, as illustrated below.

Appoints

GENERAL SHAREHOLDERS’ MEETING

SUPERVISORY BODIESSupervisory
Committee

Executive
Chairman

Chief Executive
Officer
Appoints

Appoints

BoD

Managerin Charge
of Financial
ReportingAppoints

Chief Internal
Audit Officer

Director in
charge of ICRSBODIES WITH DELEGATED POWERS

Board of
Statutory
Auditors

Sets upRemuneration
Audit, Risk
& Appointments & Sustainability
Committee
Committee
BOARD COMMITTEES

On the basis of the definitions provided by the 2020 CGC
and ownership structure, Brembo qualifies as:
•

•

94

a large Company, whose capitalisation was greater than
€1 billion on the last Exchange business day of each of
the previous three calendar years before the adoptionof the 2020 CGC and approval of Brembo’s CGC;
a Company with concentrated ownership since its
majority shareholder directly holds the majority ofthe votes that may be exercised in the ordinary shareholders’ meeting.

Annual Sustainability Report 2023

Regardless of such classifications, the Company decided,
where possible, to implement all recommendations of the2020 CGC, without exercising any of the flexibility options
granted.
Despite it being controlled by another company, Brembo is
not subject to the direction and coordination of any company or entity pursuant to Article 2497-bis of the Civil Code.
This is because, in accordance with recommendations of
the 2020 Corporate Governance Code, all decisions defining
the company’s strategic and direction aspects are subject

3.1 Corporate Governance Modelto the collective examination of and exclusive approval by
the Brembo S.p.A.’s Board of Directors — made up, interalia, of six Independent Directors at 31 December 2023.
Such decisions include the preparation of industrial, strategic, financial and budget plans at Group level, the issuanceof guidelines relating to the finance and credit policy, thecentralisation of the functions or the definition of strategies
for growth, strategic and market positioning of the Groupand the individual companies.

nancial performance, business objectives, investments andmarketing policies. The requirements pursuant to Article
2497-bis of the Civil Code have been complied with.
•

Brembo S.p.A. is conversely responsible for coordinationand control of its Subsidiaries pursuant to Article 2497 of
the Civil Code, and sets the company and Group strategies
aimed at medium-to-long-term sustainability in terms of fi-

Shareholders’ Meeting. It is the body through which
corporate intentions are forged and expressed for subsequent implementation by the Board of Directors. It
comprises Brembo’s Shareholders and meets regularly
to pass resolutions according to the formalities and on
matters defined by the law, as well as by the Company’s
By-laws. The most relevant Shareholders’ Meeting’s duties include selecting the members of the Board of Directors and the Board of Statutory Auditors, as well as
approving the Financial Statements for the year.

MAIN SHAREHOLDERS

No. OFSHARES% OF SHARECAPITAL

VOTES% OF VOTINGRIGHTSOUTSTANDING

DECLARANTDIRECT SHAREHOLDER

NATIONALITY

Bombassei Alberto

NUOVA FOURB SRL

Italy

178,859,605

53.563

357,583,370

69.706

2

BREMBO SPA

Italy

15,051,860

4.508%

15,051,860 (*)

2.934%

3

CITY OF NEW YORKGROUP TRUST

U.S.

5,304,468

1.589

5,304,468

1.034

4

VANGUARD INTERNATIONALVALUE FUND

U.S.

4,611,463

1.381

4,611,463

0.899

5

MAWER GLOBAL EQUITY FUND

Canada3,321,231

0.995

3,321,231

0.647

6

MAWER GLOBALSMALL CAP FUND

Canada2,573,523

0.771

2,573,523

0.502

7

GOVERNMENT OF NORWAY

Norway2,375,951

0.712

2,375,951

0.463

8

RBC IST TREATY CLIENTS AC

Canada2,247,154

0.673

2,247,154

0.438

9

FLORIDA RETIREMENT SYSTEM

U.S.

2,031,602

0.608

2,031,602

0.396

10

MEDIOLANUM FLESSIBILESVILUPPO ITALIA

Italy

1,950,000

0.584

1,950,000

0.380

1

* treasury shares are not excluded from voting rights.

As of 1 January 2022, the Shareholders’ Register is managed
in an electronic format. This new management method was
also chosen with the aim of reducing paper consumption.

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95

3. Company Structure

RELATIONS WITH SHAREHOLDERS - BREMBO SHAREHOLDER ENGAGEMENT POLICYBrembo takes special care in monitoring relations withshareholders, institutional and private investors, financial
analysts, and the financial community, scrupulously respecting mutual roles.
In accordance with the recommendations of the 2020 CGC,
to which adheres, the Brembo Shareholder Engagement
Policy was prepared and approved by the Board of Directors on 17 December 2021, following a process of circulation to the Independent Directors, members of the Audit,
Risk & Sustainability Committee and Board of Statutory
Auditors.
This Policy governs the relations, responsibilities and procedures for engaging in dialogue between the Company
and its current and/or potential Shareholders and/or Investors, or with their representatives and advisors for voting
matters. Dialogue may be initiated at the request of thecurrent and/or potential Shareholders and/or Investors, orat the initiative of the Company, and is implemented, in
the interest and on the behalf of the Company, solely by theparties identified in this Policy.
The Policy draws inspiration from the principles of propriety, transparency and symmetry of information, in accordance with EU and Italian legislation on market abuse.
The full version of the Policy is available on the Company’
website45.
Brembo provides the Shareholders and/or Investors withinformation regarding its activities, strategies and performance, in the manner set out in this Policy. Particular attention is devoted to information regarding environmental,social and governance (ESG) issues, since they are deemed
relevant to constructing a company identity of sustainability integrated into the business and designed to create
present and future value.
Dialogue thus revolves around the matters within the purview of the Board of Directors and its committees, including,in particular: corporate governance (e.g., appointments andcomposition of the Board of Directors, information regarding the size, competencies, professionalism, independence
and diversity of the members of the Board of Directors andBoard Committees, etc.), sustainability, company strategies,
prospects and financial performance, management remuneration policies, dividend policies, Internal Control and
Risk Management System and all other topics that may
enable better understanding of the activities performed by
Brembo, useful in supporting investment decisions.
On 17 December 2021, the Board of Directors granted general delegated powers to the Executive Chairman for operational management of all processes of engagement anddialogue with the current and/or potential Shareholders
and/or Investors, ensuring that such processes are always
performed in the Company’s interest and in accordancewith the laws, regulations, policies and internal rules. Within the framework of this delegated authority, the Executive
Chairman is supported by the Head of Investor Relations
and coordinates, where necessary or appropriate, with theCEO, Secretary of the BoD and the Chief Communication
Officer, according to their respective attributes.
All Investors’ requests may be sent to Brembo via the following
channels: e-mail ir@brembo.it and phone +39 035 6052145.
Company-specific information that could be relevant toShareholders is published on Brembo’s website (www.
brembo.com, section Investors) so as to provide them withthe data required to make informed voting decisions.
For the disclosure and filing of regulated information, Brembo S.p.A. has availed of the Consob-authorised system
1INFO (www.1info.it), managed by Computershare S.p.A.
The activities carried out in 2023 according to the Shareholder Engagement Policy are described in the Corporate
Governance and Ownership Structure Report 2023 (paragraph 12).

45 www.brembo.com, section Company, Corporate Governance, Governance Documents.

96

Annual Sustainability Report 2023

3.1 Corporate Governance Model

SHARE CAPITAL

Brembo S.p.A.’s subscribed and fully paid-up share capitalamounted to €34,727,914 at 31 December 2023 and was
divided into 333,922,250 ordinary shares, without nominal
value.
It should be noted that, as part of the Cross-Border Conversion approved by the General Shareholders’ Meeting of
27 July 2023, on 12 January 2024 Brembo proceeded withthe voluntary share capital decrease from €34,727,914.00
to €3,339,222.50 instrumental to the Transaction46. The
decrease was necessary as Dutch law, contrary to Italianlaw, does not allow the issuance of shares of Dutch N.V.’s
without express indication of par value and it requires thatthe par value is specified in the articles of association andconsist of no more than two decimal places.
For more information, see https://www.brembo.com/en/investors/for-shareholders/registered-office-relocation.
Accordingly, as of the date of approval of this NFI, theCompany’s share capital amounts €3,339,222.50 and isrepresented by 333,922,250 ordinary shares with no nominal value. The Company holds 15,051,860 own shares,
representing 4.508% of share capital and 2.934% of voting
rights. The voting rights associated with own shares havebeen suspended pursuant to Article 2357-ter, paragraph 2,of the Italian Civil Code; accordingly, the total number ofvotes that may be exercised at the General Shareholders’Meeting amounts to 318,870,390 ordinary shares. Pursuant to Article 127-quinquies of Legislative Decree No. 58
of 24 February 1998 (as subsequently amended and extended, the “TUF”) Article 6 of the By-laws however, twovotes are attributed for each share belonging to the same
shareholder for a continuous period of at least twenty-four months from the date of registration in the special list for this purpose specifically established, kept andupdated by the Company, as required by the By-laws (theso-called “increased voting right”). The number of shares
which entitles to an increased voting right is available on
the Company’s website www.brembo.com (section “In-vestors”, “For Shareholders”, “Increased Voting Right”).
Following the application of the increased voting rightmechanism as of the date of publication of the NFI pursuant to Article 127-quinquies of TUF and Article 6 of the
By-laws:••

the overall number of voting rights that may be exercised is 512,988,721;
shares entitling to the increased voting right mechanism are 179,066,471 out of a total of 333,922,250 shares,
thus with overall voting rights equal to 358,132,942.

Executive Chairman
Appointed directly by the Shareholders’ Meeting, the Chairman ensures balanced oversight of the Board’s proceedings, playing a role of liaison between Executive Directors
and Non-Executive Directors, in addition to ensuring thenecessary balancing for effective, balanced managementof meetings and the decision-making process, while also
promoting the effective and adequate functioning of thecorporate governance system and proceedings. His duties
are regulated by the Regulations of the BoD (whose mostrecent update was approved during the BoD’s meeting of
16 December 202247).
The BoD has granted the Executive Chairman all thepowers allowing him to oversee the ordinary operationsof the Company, and which attribute him a more strategic and institutional role than in the past, identifying
the Executive Chairman as the liaison between Brembo
and its stakeholders. The Executive Chairman has been
granted delegated powers for operational managementof all processes of engagement and dialogue with thecurrent and/or potential Shareholders and/or Investors.
The Executive Chairman periodically reports to theBoard of Directors and the Board of Statutory Auditorson this specific activity. Any conflict of interest is managed according to the provisions of the Related Party
Transactions Procedure.

46 Said decrease was executed without cancellation of shares and without any reimbursement of capital to shareholders, through recognition to the Company’s equity of a reserve of an equal amount. Therefore, this decrease had no impact on Brembo Shareholders’ capital and administrative rights.
47 The update of the Regulations of the BoD on 16 December 2022 refers to the increase of the age-limit for candidacies for the position of Independent
Director to 78 to be submitted in view of renewal of the company bodies for the 2023-2025 term.

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97

3. Company Structure

Chairman Emeritus
The role of Chairman Emeritus was introduced through anamendment to the By-laws of 17 December 2021. A director or
person external to the Board of Directors may be appointed
to serve in this role, provided that he or she has contributed to
the Group’s prestige and development notably and for a significant period of time. The Chairman Emeritus is tasked withadvisory functions relating to the definition of strategies andactions aimed at the growth of the Group, as well as with representing Brembo at events relating to cultural, scientific andcharitable activities and at institutional meetings. It bears
also recalling that the Chairman Emeritus, even where he or
she does not occupy the role of Director, may participate in
the meetings of the Board of Directors, expressing non-binding opinions and recommendations, as well as in sessionsof the Shareholders’ Meeting. Any remuneration due to the
Chairman Emeritus is determined by the Board of Directors.

Board of Directors (BoD)
This is the Governing Body that steers the Group and is responsible for managing the Company, except for any matters that fall within the scope of the duties fulfilled by the
Shareholders’ Meeting, pursuing its "Sustainable Success",
as provided for by the Company’s purpose. The Board of Directors is responsible for providing strategic and organisational guidance for the company and the Group, verifying
the adequacy of the organisational structure and the fitnessof the checks needed to monitor the company’s and theGroup’s progress. The functions and duties described in Article 1 of the 2020 CGC and Brembo’s CGC also fall into the
BoD’s remit and include assessing the types and levels of riskthat are compatible with Brembo’s strategic goals, includingfrom the point of view of the mid-to-long-term sustainabilityof the company’s activities. The Board of Directors is also
responsible for analysing, sharing, approving and monitoring the annual budgets and strategic, business and financial
plans. It is also tasked with ensuring sustainable growth in
the medium-to-long term through an adequate control andrisk management system, including risks having an impact
on sustainability, in addition to the utmost transparency towards the market and investors, with a particular emphasison material changes in business prospects and situationsof risk to which the company is exposed. Every quarter, theBoD examines, assesses and monitors the management
performance, the Group’s strategic operations, the report ofpowers granted, the strategic projects and industrial plans,
the Group’s growth strategies with related risks, as well as
the suitability of the Internal Control and Risk Management
System, the Governance and Compliance System and Brembo’s significant operations.
The activities performed by the BoD in 2023, also with theaim of pursuing the Sustainable Success, are illustrated in
the 2023 Corporate Governance and Ownership Structure
Report (Paragraph 4.1).

APPOINTMENT, SELECTION AND COMPOSITION OF THE BOARD OF DIRECTORSThe current process for appointing and selecting the highest
governing body grants the Ordinary Shareholders’ Meetingthe power of identifying the members of the Board of Directors. In particular, the members of the BoD are appointed by
the ordinary Shareholders’ Meeting on the basis of lists submitted by Shareholders with a minimum threshold of 1%
of share capital. It should be noted that Brembo’s By-laws
does not provide for the possibility for the outgoing Board of
Directors to submit its own list. The Board of Directors may
be made up of a minimum of five and a maximum of elevenmembers, as per the resolution of the General Shareholders’Meeting in accordance with the following:•98

at least one (1) Board member, or two members if theBoard is made up of more than seven members, meeting the independence criteria and in accordance with the
Corporate Governance Code, endorsed by the Company;

Annual Sustainability Report 2023•

its composition must reflect gender balance, in accordance with the laws from time to time in force.

Pursuant to Article 15 of the By-laws, the members of theBoard of Directors may be re-appointed and, unless otherwise resolved by the General Shareholders’ Meeting, shallhold office for the period determined by the General Shareholders’ Meeting resolution appointing them, up to a maximum of three financial years.
The Regulations of the BoD provide for, inter alia, new criteria, based on as objective a foundation as possible, in addition to those established by applicable laws and regulations,relating to the professionals to propose as candidates in order to ensure that the composition of the Board of Directors
is adequate to the Group’s size, position, complexity and thespecific nature of its business sector and strategies.
These criteria aim at ensuring the appointment of Board

3.1 Corporate Governance Model

members who have an optimal combination of skills andprofessional background and form the diversity policies for
the Governing Body’s composition not only with regard togender, but also experience, professionalism, integrity, independence, age and other relevant aspects, as provided for by
applicable laws, regulations, and the By-laws. In particular,
Diversity policies and criteria for the Board of Directors:••

reserve a minimum quota to the less represented genderin accordance with the provisions in force from time totime: at the date of approval of this document, law provides for a quota of 2/5;
formulate qualitative and quantitative criteria to be used
to assess the significance of the relationships being examined for the purposes of assessing the independence of
the Directors (e.g. at least four positions must be filled byentrepreneurs or managers who have an international
background and/or are from a geographical area where
Brembo’s business has a significant presence).

In view of the appointment of new boards at the 2023 General
Shareholders’ Meeting, in order to avoid precluding the possibility of nominating and/or confirming some potential membersof the BoD whose skills and standing are recognised at boththe Italian and international level, and to ensure continuity of
the work done, the BoD’s meeting of 16 December 2022 – witha favourable opinion from the Remuneration & Appointments
Committee (also considering the results of the 2022 Board
Performance Evaluation) — amended the Regulations to the
BoD and Brembo’s CGC, increasing the maximum age of candidates for the position of independent Director to 78. It should
be noted that the candidates for the three-year period 2023-

2025 were nominated based on the guidelines expressed by
the then outgoing Board of Directors in the document “Guidelines of the outgoing Board of Directors of Brembo S.p.A to
Shareholders on the qualitative and quantitative compositionof the Board of Directors” — published on 2 March 2023 andattached to the Directors’ Report on the appointment of theBoard of Directors, made available on the Company’s website
in view of the Shareholders’ Meeting, with the aim of ensuring
an optimal composition of the Board of Directors, in terms ofskills, experience and professionalism among the Board members. The General Shareholders’ Meeting of the Parent Brembo
S.p.A. held on 20 April 2023 confirmed the number of Board
members at 11 and appointed the Board of Directors for thethree-year period 2023-2025, i.e., until the General Shareholders’ Meeting called to approve the Financial Statements forthe year ended 31 December 2025.
All the appointed Directors meet the requirements of personal integrity, professionalism and respectability imposed byapplicable statutory and regulatory provisions. The Non-executive Directors and those who can qualify as Independent Directors meet the requirements set by Article 148, paragraph 3,
of TUF, and/or by the Corporate Governance Code. As required
under the 2020 CGC, Brembo set up and reconfirmed, within
the Board of Directors, the Remuneration & Appointments
Committee and the Audit, Risk & Sustainability Committee,
which also acts as the Related Party Transactions Committee.
The roles, composition and functioning of all Committees aredefined in specific Regulations fully implementing the principles and criteria set forth in the 2020 CGC. Further details on
the composition of each Committee and the activity carriedout please refer to the tables on pages 226.

BOD’S SKILL MATRIX 202348

Strategy
ESG
Finance
International experience
Legal and risk management
Industry-related experience
Other
No. of Directors

2

4

6

8

10

* “Other” includes the further skills not included in the list that each Director has declared on an autonomous basis.
48 Results of the 2023 skill matrix emerge from the Board Performance Evaluation for the three-year period 2022-2023, described in the sub paragraph “TheBoard of Directors’ performance assessment”.

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3. Company Structure

COMPOSITION OF THE BOARD OF DIRECTORS AND OF BOARD COMMITTEES - 2023

LIST2

EXEC.

ATTENDANCERATE AT 2023
MEETINGS3OTHEROFFICES HELD4ATTENDANCERATE ATSHAREHOLDERS’MEETINGSApproval of
the Financial
Statements at
31.12.2025

Ma

X

100%

-

100%

Chief Executive
Officer

DanieleSchillaci

1964

28.06.2019(coopt.)20.04.2023

Approval at
31.12.2025

Ma

X

100%

-

100%

Director

Cristina
Bombassei

1968

16.12.1997(coopt.)20.04.2023

Approval at
31.12.2025

Ma

X

100%

1

100%

Director

RobertoVavassori1959

17.12.2021

20.04.2023

Approval at
31.12.2025

Ma

X

100%

-

100%

Director

Elisabetta
Magistretti

1947

23.04.2020

20.04.2023

Approval at
31.12.2025

Ma

X

X

X

100%

1

100%

Director

ElizabethM.
Robinson1956

23.04.2020

20.04.2023

Approval at
31.12.2025

Ma

X

X

X

100%

-

100%

Director (LID)

ManuelaSoffientini

1959

03.03.2022

20.04.2023

Approval at
31.12.2025

Ma

X

X

X

100%

3

100%

Director

Gianfelice
Rocca

1948

29.04.2011

20.04.2023

Approval at
31.12.2025

Ma

X

X5

X

100%

7

100%

Director

UmbertoNicodano

1952

03.05.2000

20.04.2023

Approval at
31.12.2025

Ma

X

100%

-

100%

Director

Giancarlo
Dallera1946

20.04.2023

20.04.2023

Approval at
31.12.2025

Ma

X

X

X

100%

0

100%

DirectorMichelaSchizzi5

1982

20.04.2023

20.04.2023

Approval at
31.12.2025

Mi

X

X

X

100%

1

100%

Number of meetings held during the year of reference

100

Annual Sustainability Report 2023

(2023)

BoD: 10

Shareholders’Meetings: 2

MEMBERIN OFFICE
UNTIL

20.04.2023

REMUNERATION &APPOINTMENTS COMMITTEEIN OFFICE
FROM

24.04.2002

MEMBERDATE OF FIRSTAPPOINTMENT1

1967

INDEP.
AS PER TUF

YEAR
OF BIRTH

MatteoTiraboschi

INDEP.
AS PER CODE

NAME ANDSURNAME

Executive
Chairman

NON-EXEC.

OFFICE HELDAUDIT, RISK & SUSTAINABILITYCOMMITTEE / RELATED PARTY
TRANSACTIONS COMMITTEE

2023 MEETINGS

BOARD OF DIRECTORSX(Chair)
100%
X
100%
X
100%

X
100%

X
(Chair)
100%
X
100%
ARSC: 11 RAC: 3

3.1 Corporate Governance Model

INDEP.
AS PER CODE

INDEP.
AS PER TUF

ATTENDANCE RATE
AT 2023 MEETINGS3OTHEROFFICES HELD4ATTENDANCE RATEAT SHAREHOLDERS’MEETINGS

Ma

X

X

X

50%

n.a.

0%

Director

Nicoletta
Giadrossi

1966

20.04.2017

23.04.2020

Approval at
31.12.2022

Mi

X

X

X

100%

n.a.

0%

MEMBERNON-EXEC.

Approval at
31.12.2022

REMUNERATION &APPOINTMENTS COMMITTEEIN OFFICE
UNTIL

23.04.2020

MEMBERIN OFFICE
FROM

20.04.2017

EXEC.

DATE OF FIRSTAPPOINTMENT1

1957

LIST2

YEAR
OF BIRTH

Valerio
Battista

NAME ANDSURNAME

Director

OFFICE HELDAUDIT, RISK & SUSTAINABILITYCOMMITTEE / RELATED PARTY
TRANSACTIONS COMMITTEE

2023 MEETINGSDIRECTORS WHO LEFT OFFICE IN 2023

X
100%

X
(Chair)100%

NOTES
1 This column shows the date on which the Director was appointed by theGeneral Shareholders’ Meeting as a Director of Brembo for the first time;‘coopt.’ means the date of co-option by the Board of Directors.
2 This column indicates the list from which each Director was appointed(“Ma”: majority list; “Mi”: minority list). It should be noted that Brembo
S.p.A.’s By-laws does not provide for the possibility for the outgoing Boardof Directors to submit its own list.
3 This column shows the Directors’ attendance rate at the meetings heldby the BoD or Board Committees in 2023 (No. of times attended/No. of
meetings held during the Director’s actual term of office.
4 IThis column shows the number of Directorships or Auditorships held inother companies listed on regulated markets, including foreign markets,
financial companies, banks, insurance companies and large companies.
Said information can be obtained from their respective statements. It
should be noted that the maximum number of Directorships and Audi-

torships in listed companies is set at four. Positions at listed companies
in which the Director also holds a significant equity interest should not
be considered. The positions of each Director are indicated in his or her
respective Professional profile.
5 It should be noted that Gianfelice Rocca qualified as independent due tothe consolidated principle of the prevalence of substance over form, since
the renewal of his appointment as Director of Brembo follows nine years ofcompleted service in office. This was also in light of the professionalism anddedication that he has always shown and his active, punctual participationin Board meetings, and to his speeches and thoughts that have enriched
and instilled quality into debate within the Board towards the resolutions
passed while also maintaining complete independence of judgement.
6 The candidature of Director Michela Schizzi was submitted by a groupof Shareholders representing 2.372% of the share capital - General Shareholders’ Meeting held on 20 April 2023.

REMUNERATION POLICIESThe BoD, through a transparent procedure in which theRemuneration & Appointments Committee of Brembo is
involved, defines on annual basis the Remuneration Policyof Executive Directors, the other Directors holding special offices and the Key Management Personnel.
Said Policy is then submitted for approval to the General

Shareholders’ Meeting to illustrate the remuneration criteria for the Directors and the other key figures within thecompany.
The Remuneration & Appointments Committee is madeup of three Independent and Non-Executive Directors, oneof whom is appointed Chairman.

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3. Company Structure

The current Committee, appointed by the Board of Directorsof 20 April 2023, following the appointment of the new company bodies by the Shareholders’ Meeting, will remain in
office until the approval of the Financial Statements for theyear ending 31 December 2025. The Committee is tasked
with ensuring that the actual remuneration complies withthe principles and criteria defined in the Policy, approving
proposals or expressing opinions to the BoD on the performance objectives associated with the variable componentof remuneration and verifying their achievement.

and in compliance with the overall remuneration established by the General Shareholders’ Meeting.
The 2024 Policy49, incorporated into the Report on the Remuneration Policy and Remuneration Paid, was approvedby the BoD on 5 March 2024, on the proposal of the Remuneration & Appointments Committee, and subsequently disclosed to the public in accordance with the terms established by law for the approval by the General Shareholders’Meeting to be held on 23 April 202450.

Under the Policy, the Remuneration & Appointments Committee is vested solely with recommendatory functions.
The power to determine the remuneration of Directors holding special offices is in any event entrusted to the Boardof Directors, in concert with the Board of Statutory Auditors

The 2024 Remuneration Policy was defined in line with thecompany’s strategy and long-term goals, in particular toensure its economic and social sustainability by attracting
and retaining the Key People needed to create value for all
stakeholders.

.

1. Ensuring the sustainablegrowth of our GroupThe ability to report economic and financial resultsthat are above the reference market average,
despite the persistence of a complex global
macroeconomic scenario

2. Creating value
for our shareholders

Drawing up a Policy able to ensure the alignmentof management’s interests with the priority of creating
sustainable shareholder value over a medium-long-termhorizon

3. Balancing decisions
against their socialand environmental impact

Brembo has always paid particular attention
to the development of global policies in the areas of ethics,
responsibility, and sustainability, considering these values
to be the foundation of the valuable “intangible” heritage
formed by its brand, and the set of principles that characterise
the way in which a socially responsible Company acts

4. Promoting the Guiding Principles
that characterise the Group

Ethics, quality, acknowledgement, proactivity and belonging
are the five guiding values that make up the wealthof Brembo’s shared culture, as well as a benchmark
for conducting the Company’s business and operations
in full respect for all the Group’s stakeholders

5. Making the Company attractiveon the market and investingin Brembo People

Brembo’s Remuneration Policy provides for an overall
remuneration suited to promoting the attraction
and retention of high-profile candidates. This Policy constantly
recognises the performances achieved so as to attract new talentand ensure Brembo People’s ongoing strong commitment

49 https://www.brembo.com/en/company/corporate-governance/remuneration-policies.
50 In 2019, regulations governing the Remuneration Policy, included in Article 123-ter of TUF, was partially amended to be brought in line with changes tothe law. The most relevant changes include the introduction of two distinct types of voting: a binding vote on the Remuneration Policy (Section I) and avote on Remuneration Paid in the previous year (Section II).

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3.1 Corporate Governance Model

The Report,prepared in compliance with Attachment 3A,Table 7-bis, of the Issuers’ Regulation introduced by CONSOB
Resolution No. 18049 of 23 December 2011, as subsequently amended by CONSOB Resolution No. 21623 of 10
December 2020, as well as in accordance with the Dutch
Civil Code and the Dutch Corporate Governance Code,consists of two sections:ates, using the tables annexed to the Report, which are an
integral part thereof.

SECTION I:
this section refers to the members of the Governing Bodies, General Managers and Key Management Personnel and contains information about the principles andguidelines according to which Brembo S.p.A. sets its Remuneration Policy, in addition to information about theprocedures used to adopt and implement that Policy. Thissection describes in a clear, transparent and intelligible
way, the general principles and purposes pursued, information regarding the governance of the process aimed
at defining Brembo S.p.A.’s Remuneration Policy with details of the main Bodies and Parties involved, as well as
information on the purposes, tools and recipients of thesaid Policy.

The two sections are supplemented with additional context-related information to enable the market and Investors to read the remuneration information contained in theReport together with the Group’s strategic guidance andsustainability, with a view to understanding the main drivers that allow Brembo S.p.A.’s Remuneration Policy to contribute more fully to the pursuit of long-term value creation
for all its stakeholders.

Section I of the Report on the Remuneration Policy andRemuneration Paid, in accordance with the provisions ofLegislative Decree No. 49 of 10 May 2019, is subject to thebinding vote of the Ordinary Shareholders’ Meeting, called
to approve the 2023 Financial Statements.

With regard to the remuneration of Brembo’s Non-executive Directors, the Policy provides for compensation
adequate to their duties, professionalism and commitment required by their assignments within the Board of
Directors and Board committees. Such compensation is
not linked to financial performance objectives and, in linewith the best market practices, no form of variable remuneration is provided for. There is, however, a Directors & Officers (D&O) Liability policy to cover the risk of third-party
claims arising from their actions in performance of theirduties. This policy also extends to any legal expenses.
With regard to Directors holding special offices, the Boardof Directors deemed it appropriate that, as Executive Directors and Key Management Personnel51, a significant
part of their remuneration be linked to the achievementof specific performance objectives, indicated in advanceand determined in accordance with the guidelines laid
down in the General Remuneration Policy, defined by the
Board of Directors.

SECTION II:
organised into two parts and audited, in accordance withthe provisions of Legislative Decree No. 49 of 10 May 2019,by the firm Deloitte & Touche S.p.A., appointed to performthe audit. The first part contains an illustration of each of
the components of remuneration paid to the members of
the Board of Directors, the members of the Board of Statutory Auditors and Key Management Personnel in 2023, in
accordance with the Remuneration Policy adopted for thatyear. The second provides a detailed account of the compensation paid during the reporting year, in any capacityand form, by the Company and its Subsidiaries and Associ-51

Section II of the Report on the Remuneration Policy andRemuneration Paid, in accordance with the provisions ofLegislative Decree No. 49 of 10 May 2019, is subject to theadvisory vote of the Ordinary Shareholders’ Meeting, called
to approve the 2023 Financial Statements.

The Policy envisages that part of the Management’s remuneration be linked to the achievement of performance
objectives — which are set and established in advance —through a Management by Objectives (MBO) annual Incentive Plan and a Long Term Incentive Plan (LTIP).

It should be recalled that at the meetings held on 6 June 2011 and 10 November 2011, the Board of Directors also identified the Directors holding special
offices as Key Management Personnel, as amended by the Board after the extraordinary Shareholders’ Meeting of 17 December 2021 (also taking into
account the opinion of the Remuneration & Appointments Committee) and referring to the Executive Chairman and the Chief Executive Officer. These
positions were confirmed by the Board of Directors on 20 April 2023

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3. Company Structure

average was calculated taking into account Brembo
S.p.A.’s employees only. The compensation elements
used in the calculation are the Fixed Remuneration, theshort-term target incentive (MBO) or the Performance
Bonus (based on the offer defined for each category of
the corporate population).

In addition, it should be noted that:•the ratio of the annual remuneration of the most highly
paid individual to the average remuneration of employees is 47.8. In accordance with what is stated in the Report on the Remuneration Policy for 2024 and Remuneration Paid in 2023, the average, rather than the median,
was taken into consideration. Average gross annual
remuneration is in line with the Report on the Remuneration Policy for 2024 and Remuneration Paid in 2023
(Section II — Comparative information regarding the
remuneration of the Board of Directors, the Group’s results and the average remuneration of Brembo’s Employees) and does not consider the remuneration of
the highest-paid person and of Executive Directors. The•

the ratio of the percent increase in the total annual compensation of the most highly paid individual within theorganisation to the average percent increase in the total
annual remuneration of all employees is equal to 0.82.
The compensation elements used in the calculation are
the Fixed Remuneration, the short-term target incentive(MBO) or the Performance Bonus (based on the offer defined for each category of the corporate population).

GOVERNANCE COMMITTEESAs required under the 2020 CGC, Brembo set up, within
the Board of Directors, the Remuneration & Appointments
Committee and the Audit, Risk & Sustainability Committee, which also acts as the Related Party Transactions
Committee.

COMMITTEESNUMBEROF MEETINGS 2023

ATTENDANCERATEPRESENCE OF
INDENPENDENT MEMBERS

Remuneration & Appointments Committee

3

100%

100%

Audit Risk & Sustainability Committee(which also acts as the related party transactions committee)

11

100%

100%

With regard to the activities carried out in 2023 by the Remuneration & Appointments Committee and the Audit,
Risk & Sustainability Committee, please refer to the 2023
Corporate Governance and Ownership Structure Report(Paragraph 8.2 and 9.2).

104

The roles, composition and functioning of all Committees
are defined in specific Regulations fully implementing theprinciples and criteria set forth in the 2020 CGC.

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3.1 Corporate Governance Model

BOARD OF DIRECTORS’ PERFORMANCE ASSESSMENT

In order to ensure the proper functioning of the highest
governing body, at least annually an evaluation is made of
the Board of Directors and its Committees, as well as theirsize and composition, taking also into account aspects
such as the professional expertise, experience (including
managerial experience), gender of their members, seniority of service and effectiveness and efficiency in the performance of their assignment.

rectors performed this activity during the previous term ofoffice — it was decided to confirm the assignment of coordination activities to the LID, in keeping with previous
editions.
The three-year self-assessment process is structured as follows:•

The process is based on self-assessment methods and must
be conducted in each year of the BoD’s three-year term. It
therefore must be modulated over the three years to adapt
the assessment to the specific phase of the term:•••in the first phase of the term, the assessment activity
relates to all areas of functioning of the BoD, in order
to identify aspects that might be improved during thecurrent term;in the intermediate phase of the term, the assessment
examines the actions taken, while also considering theresults of the first assessment, to render the BoD evenmore cohesive and functional, in view of ongoing improvement over the three years;
in the final phase, the outgoing BoD conducts an endof-term assessment and analyses the qualitative andquantitative composition of the Board, so as to provide
guidance concerning the professionals whose presence
is deemed appropriate to an optimal composition of
the new Board of Directors.

According to the Corporate Governance Code, the Remuneration & Appointments Committee is responsible forstarting and managing the Board Performance Evaluation(BPE). However, in light of the consolidated, effective andefficient practice with which the LID and Independent Di-••

Year 2023: activity managed internally by Brembo
through questionnaires and, where necessary, individual interviews of Directors;
Year 2024: activity managed internally by Brembo
through questionnaires and, where necessary, individual interviews of Directors;
Year 2025: assessment of the possibility of assigning
the BPE activity to an external independent advisor.

The Board Performance Evaluation for 2023 was performed
according to the following working plan. The plan was presented firstly on 18 October 2023, during the meeting of the
LID. Subsequently, on 7 November 2023, the LID illustrated
to the Board of Directors the Working plan and submitted
the final questionnaire to the Directors. The Directors sent
the filled-in questionnaire to the Legal & Corporate Affairs
GCF by 30 November 2023. From then until 6 December
2023, the LID analysed the questionnaires and assessed
whether it was necessary to perform individual interviews.
On 19 December 2023, the results of the analyses were presented to the BoD and all the Independent Directors.
The results of the Board Performance Evaluation and theactivity performed are reported on an annual basis in the
Corporate Governance and Ownership Structure Report.
Reference should be made to the related 2023 Report (paragraph 7.1).

INDUCTION PROGRAM

With reference to training and development of the skillsof Directors, Brembo defined a dedicated induction programme, structured in several sessions, specifically designed for newly appointed Directors and Statutory Au-

ditors. This initiative is aimed at providing an adequate
understanding of the Group and the business industry
in which the Group operates, its products, company dynamics and their evolution, including in a view of Sus-

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3. Company Structure

tainable Success, as well as organisational structure, theprinciples of proper risk management, applicable laws
and regulations and major trends that may have an impact on the current performance and the Group’s short-,
medium- and long-term growth strategy. At the end of its
induction period Brembo offers to the members of theBoard of Directors the option to engage in personalised
in-depth training activities centred on each Director’s
specific interest areas or remits, as well as the opportunity to focus on specific subject matters prompted by
new requests for more in-depth information arisen fromIndependent Directors’ meetings or as a consequence of
the Board Performance Evaluation. All newly appointed
Directors receive the “Director’s Manual”, which contains
all of the Codes, Regulations and Governance Procedures
adopted by the Company. As part of these initiatives,
particularly important is the Board meeting dedicatedto the review of the Industrial Plan and the related risks.
Convened on an annual basis and with the support of
the Company’s top management, such meeting is focused on the analysis and investigation of the Group’s
medium/long-term strategies.
In 2023, a basic induction training path was organised
for the newly appointed Directors and Statutory Auditorsof Brembo S.p.A. elected by the Shareholders’ Meetingon 20 April 2023, for the 2023-2025 term, also open to theother Independent Directors and Statutory Auditors. The
programme consisted of several sessions held remotely,with the direct involvement of various C-suite managers of
Brembo S.p.A.
Lastly, on 18 July 2023 an induction training session hosted
by Dutch law experts was organised to examine the main
aspects of the corporate governance code in force in The
Netherlands.
In 2023, additional training activities were carried out
during board or committee meetings and concerned constant updates on the outlook for the automotive industry,
amendments to the 231 Model, briefings on the international geopolitical situation and its impacts in the automotive industry, gender equality certification and news

regarding non-financial reporting under the new CSRD
(Corporate Sustainability Reporting Directive).
For further details on the 2023 induction activity, pleaserefer to the Corporate Governance and Ownership Structure Report 2023 (Paragraph 4.6).

Board of Statutory Auditors
It is the body in charge of supervising compliance with thelaw and corporate By-laws, observance of the principles ofsound management and adequacy of the organisational,
administrative and accounting structures adopted by theCompany. It is tasked with functions of supervision of thefinancial reporting process, the efficacy of internal control
systems, internal auditing and risk management, the statutory auditing of the annual and consolidated accounts
and the independence of the auditing firm. All membersof the Board of Statutory Auditors satisfy the eligibility, integrity and professionalism requirements laid down by thelaw. In addition, the Acting Auditors shall be chosen frompersons who qualify as independent.
The General Shareholders’ Meeting held on 20 April 2023
appointed the Board of Statutory Auditors for the threeyear period 2023-2025, i.e., until the General Shareholders’Meeting called to approve the Financial Statements for theyear ending 31 December 202552, based on the two lists
submitted, respectively by the majority shareholder Nuova
FourB S.r.l. and a group of Asset Management Companies
and other institutional investors (holding 2.372% of theshare capital, overall).
Pursuant to Article 22 of the By-laws, the following Statutory Auditors were elected from the minority list:••

the first candidate for Acting Auditor, Fabrizio di Giusto, who was also appointed Chairman of the Board of
Statutory Auditors pursuant to law and the company’s
By-laws;
the first candidate for Alternate Auditor.

The composition of the Board of Statutory Auditors is indicated in the following table.

52 Due to the Cross-Border Conversion, whereby the company is transferring its registered office to the Netherlands — a country in which a One-Tier system
is in place, and thus without a control body as defined in the Traditional system — with effect from 24 April 2024, Brembo’s current Board of Statutory
Auditors will cease to serve on the Transaction Effective Date (24 April 2024), and the control function will be performed by non-executive directors, who,
in accordance with the Dutch Corporate Governance Code (as defined below), will make up the majority of the members of the Board of Directors.

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BOARD OF STATUTORY AUDITORS - COMPOSITION AT 31 DECEMBER 2023

BOARD OF STATUTORY AUDITORS

20.04.2023

20.04.2023

Approval of
the Financial
Statements at
31.12.2025

Mi

X

1.2

100%

100%

100%

ActingAuditor

Mario
Tagliaferri

1961

20.04.2017

20.04.2023

Approval at
31.12.2025

Ma

X

5.6

93.75

100%

100%

ActingAuditorStefania
Serina1984

29.04.2022

20.04.2023

Approval at
31.12.2025

Ma

X

2

100%

100%

100%

LIST2

NAME ANDSURNAMEINDEP. AS PER
CODE

1966

IN OFFICE
UNTIL

Fabrizio
Riccardo Di
GiustoIN OFFICE
FROM

WEIGHT OF
OTHER OFFICESHELD3DATE OF FIRSTAPPOINTMENT1

Chairman

OFFICEHELDYEAR OF BIRTHATTENDANCETO BOARD OF
STATUTORYAUDITORS’MEETINGS
IN 20234

ATTENDANCETO BOARD OF
DIRECTORS’MEETINGS IN
20234

ATTENDANCETO THESHAREHOLDERS’MEETINGS4ACTING AUDITORSALTERNATE AUDITORS

Alternate
Auditor

Alessandra
Vaiani1970

20.04.2023

20.04.2023

Approval at
31.12.2025

Ma

X

-

-

-

-

Alternate
Auditor

GiuliaPusterla

1960

20.04.2023

20.04.2023

Approval at
31.12.2025

Mi

X

-

-

-

-

Board of
Statutory
Auditors: 16

Board ofDirectors: 10

Shareholders’Meetings: 2

100%

50%

100%

No. of meetings held during the year of reference (2023)

STATUTORY AUDITORS WHO LEFT OFFICE IN 2023

Chairwoman Raffaella
Pagani1971

29.04.2014

23.04.2020

Approval at
31.12.2022

Mi

X

NOTES

4.92

1 The date of first appointment of each Auditor refers to the date on which the said Auditor was appointed for the first time (ever) as member of
Brembo S.p.A.’s Board of Statutory Auditors.
2 This column shows the list from which each Auditor was elected (“Ma”:
majority list; “Mi”: minority list, submitted by a group of shareholders representing 2.27836% of share capital).
3 This column shows the number of other Directorships or Auditorships heldby the Auditor within the meaning of Article 148-bis of TUF and relevant

implementing provisions set forth in Consob Rules for Issuers, in addition to
the weight calculated on the basis of Article 144-duodecies of these Rules.
The full list of Directorships and Auditorships held is published on the Consob website pursuant to Article 144-quinquiesdecies of the Consob Rules for
Issuers.
4 This column shows the percentage of Board of Directors’ meetings attended by Statutory Auditors in 2021 (No. of meetings attended/No. of meetings held by the Board during the Statutory Auditor’s actual term of office).

Independent Auditors
General Shareholders’ Meeting convened on 22 April 2021
granted the mandate for auditing the accounts of Brembo
S.p.A.53 for a 9-year term, i.e. for the years ended 31 De-

cember 2022-2030, on the basis of the recommendation
expressed by the current Board of Statutory Auditors.
Moreover, the Independent Auditors meet regularly with
the Board of Statutory Auditors and, during some sessions,

53 Mandate for auditing the accounts of Brembo S.p.A., pursuant to Legislative Decree No. 39 of 27 January 2010, of Regulation (EU) No 537/2014 of theEuropean Parliament and of the Council of 16 April 2014.

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3. Company Structure

also jointly with the Audit, Risk & Sustainability Committee, for updates on audit activities and to discuss thesignificant matters raised in the Independent Auditors’
Report pursuant to Articles 14 and 16 of Legislative Decree No. 39/2010, as amended by Legislative Decree No.
135/2016.
The Independent Auditors in office were also assigned responsibility for verifying the preparation of the Disclosureof Non-Financial Information drafted in accordance with
Legislative Decree No. 254/2016, and were granted an assignment to conduct limited assurance on the Disclosureof Non-Financial Information of Brembo according to anassessment of the appropriateness and efficiency of its approach and activity.
The management and development of the governancesystem is founded on a number of responsibilities, related to a system of procedures, practices and activities
designed not only to meet legal requirements, but also
to make the governance system effective as a whole.
For this purpose the following tools are also in place atGroup level:

1. Delegation of Powers
Brembo has established a system of delegated powers andpowers of attorney to ensure that powers are segregated
and the related flows and processes improved, for regulatory compliance purposes.
It is an integral part of Brembo’s Internal Control and Risk
Management System and is used as a tool for management, oversight and supervision, including with regard toLegislative Decree No. 231/2001, because it permits:

The new structure is focused on the diversification of theduties and responsibilities of the delegated bodies (the Executive Chairman and CEO) and is intended to make themost of the respective professional and personal aptitudes,
competencies and characteristics of the delegated bodies.
It is inspired by the need to create a clear, precise divisionof competencies functional to avoiding overlapping and/or situations of decision-making impasse and to enabling
the rapid identification of those responsible for individual
management decisions, both within the Company and by
stakeholders.
The GBU Chief Operating Officers and the officers who havebeen assigned specific company functions — generally coinciding with the first reports to the Executive Chairman
and Chief Executive Officer — who have been granted limited powers for ordinary management in relation to theperformance of their respective offices, have been granted
further delegated powers. Conversely, solely on an exceptional basis — subject to review from time to time by the
Executive Chairman, the Chief Legal & Corporate Affairs
Officer and the Chief Human Resources & Organisation Officer —, special powers are granted to employees whose
job descriptions do not fall within the categories mentioned above, but who, by reason of their assigned tasks,
are required to represent Brembo in the latter’s relations
with the Public Administration (such as for instance, customs authorities, the Provincial Labour Department, etc.).
Lastly, Employers have also been identified pursuant to
Article 2, paragraph 1, letter B, of Legislative Decree No.
81/2008 for Brembo’s various production units, to which
all of the necessary powers of organisation, management
and spending authority have been assigned for the performance of the role of employer, as defined in current
legislation.

I) the identification of persons whose actions may potentially be, or already are, externally relevant and may
give rise to the commission of an offence;II) distribution of decision-making and commitments, including commitments to spend money, on the Company’s behalf;III) prevention of the abuse of the powers assigned.

In accordance with laws and regulations and pursuant to
the By-laws, the Bodies Delegated by the Board of Directors
report on the activities carried out in the performance of
their respective delegated powers, at least on a quarterly
basis and in any case in the subsequent meeting.

Authority to delegate powers is vested solely in the Executive Chairman, and Chief Executive Officer (exclusively
in relation with powers concerning workplace safety andenvironment), on the basis of specific powers vested in
the latter by the Board of Directors, without prejudice tospecific Board resolutions.

2. Governance Model of Subsidiaries
Brembo has fixed additional internal rules, in accordancewith regulations applicable in each Country, based on thesize and complexity of each Subsidiary, to define the corporate structure of subsidiaries so that this is compatible with
the Parent’s “traditional” structure.

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3.2 RESPONSIBLE BUSINESSMANAGEMENT SYSTEM

Brembo considers that transparent, ethical and compliant
conduct, under all aspects, is essential for the company’s
activities to be managed correctly. This means not only
observing the current laws and regulations, but also considering the expectations and aspirations of the various
stakeholders. In order to promote a Group’s prevention policy, Brembo has implemented an integrated global compliance system, adopting a system of tools which apply to theentire Group (Brembo Corporate and Compliance Tools54)
designed to ensure a high ethical standard.
The Code of Ethics is the mainstay of this system, but theCode must be read and interpreted together with the documents considered essential for the development and dissemination of the Group’s core values. These include theAnti-bribery Code of Conduct, the Brembo Compliance
Guidelines, the Code of Basic Working Conditions, Brembo’s Policy on Non Discrimination and Diversity and othercodes of conduct, policies, procedures, guidelines and organisational provisions existing today. These documents
meet the requirements of Legislative Decree No. 254/2016,
which requires information to be provided on the policies
implemented by the business for managing the impact of
its activity in non-financial environments. All the Codes andpolicies adopted and described below apply to the Brembo
Group, unless otherwise specified.

3,090

Employees trainedon the Code of Ethics in 2023

Code of Ethics
This Code sets out the behavioural standards that must
be adhered to by all those who, for whatsoever reason,
work on behalf of Brembo, in order to support sustainablegrowth and protect the company’s reputation, in compliance with the principles shared on a Group level, applicablelaws and best practice. The document encourages the understanding of and respect for diversity in countries where
Brembo operates, and fostering a real culture of integrity
with all the company’s stakeholders. The third edition of

the Code of Ethics, approved by the Group’s Board of Directors in December 2016, is available in the local languagesof the Countries where Brembo operates.
The Code of Ethics, approved by the Board of Directors, after having been examined by the Audit, Risk & Sustainability Committee and the Supervisory Committee, must beread and interpreted together with the Anti-bribery Codeof Conduct, the Code of Basic Working Conditions, Brembo’s Policy on Non Discrimination and Diversity and all theother codes of conduct, policies, procedures, guidelines andorganisational provisions existing today.

Anti-bribery Code of Conduct
This Code is aimed at maximising transparency, clarifying
permissible behaviour, ensuring strict compliance with
anti-bribery regulations in force in all countries in which
Brembo operates and by any person who, in any capacity,
work for Brembo, maintaining the highest standards of integrity. It also defines, inter alia, Brembo’s policy on giving
and receiving of gifts, hospitality and entertainment, thefree provision of goods and services for promotional or public relations purposes, financing to political parties, donations to charitable organisations. Any amendments to theAnti-bribery Code is submitted for approval to the Audit,
Risk & Sustainability Committee, the Supervisory Committee and approval by Board of Directors.
For China-based Group companies a China Anti-bribery Addendum has been adopted, which supplements Brembo’s
Anti-bribery Code of Conduct and introduces further specific rules, in compliance with local legislation and practices.

Organisational, Management and Control Modelaccording to Legislative Decree No. 231/2001
Brembo adopted its own Organisational, Management andControl Model according to Legislative Decree No. 231/2001(hereinafter “231 Model”), approved by the Board of Directors, after having been examined by the Audit, Risk &Sustainability Committee and the Supervisory Committee,
and applied to Brembo S.p.A., compliant with Confindustria’s Guidelines on Organisational Models, which is an integral part of the Internal Control and Risk Management
System. With respect to implementation of the 231 Model,

54 The Brembo Codes of Conduct and Policies are available for public consultation at http://www.brembo.com/en/company/corporate-governance/codes-policies.

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3. Company Structure

monitoring activities are conducted by the Internal Audit
GCF, which prepares periodic reports for the Supervisory
Committee and the Audit, Risk & Sustainability Committee, which in turn report to the BoD. Internal Audit also
prepares a periodic report for the BoD.
In 2023, the 231 Model was updated twice:
1. The first change was made in July 2023, with the adoption of the new Whistleblowing Procedure (the whistleblowing channel is managed by the Internal Audit GCF)
and the update to the General Part of the 231 Model. In
detail, the changes refer to the introduction of the reference to the definition of the Whistleblowing Decree(Legislative Decree No. 24/2023 transposing Directive(EU) No 1937/2019), the updating of the list of offences,to which the offence of false or omitted statements forthe issuance of the pre-operation certificate” was added, and the updating of the paragraph on the disciplinary framework, as also applicable to cases of violationof the Whistleblowing Procedure — a paragraph that
was added for consistency with the reference to thenew procedure and the new channel set up pursuant toLegislative Decree No. 24/2023.
2. The second amendment was made in November 2023
to update the 231 Model in both the General Section and
one Special Section entitled “Offences associated with
Receiving, Money Laundering and Using Money, Assets
or Profits Obtained Illegally, as well as Self-Laundering”
in order to reflect the regulatory changes introduced by
Article 25-novies of Legislative Decree No. 231/01 (Copyright infringement); Article 353 of the Italian Criminal
Code (Bid rigging); Article 353-bis of the Italian Criminal Code; (Interference with the tender process); Article
512-bis of the Italian Criminal Code (Fraudulent transfer of values), while also updating, where necessary andapplicable, the offence, the related sensitive activities
and control protocols.
In this context, noteworthy is also the use of Brembo Compliance Guidelines (most recently updated in July 2022),
which summarise the main rules of conduct and main control principles indicated in the Special Sections of the 231
Model which the Subsidiaries are required to adopt to prevent crimes within the meaning of Legislative Decree No.
231/2001. Compliance with said guidelines prevents from
criminal liability being transferred to Brembo S.p.A. and its
subsidiaries and corporate liability being transferred fromthe Subsidiaries to the Parent.

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Local Compliance Programmes
These are the compliance programmes (summarised ina specific document) implemented in each subsidiary (inItaly this occurs through the 231 Model) to prevent or mitigate corporate liability in accordance with local legislation,
through a risk assessment process, a mapping of sensitive
areas and preparing of the most suitable control protocols,
which form part of each subsidiary’s risk control and management system. Each Country General Manager with responsibility for the operation of each company’s Risk Control and Management System acts as the contact person
for implementation and monitoring of the local compliance programme project, with the support of the various
officers responsible for process and the related organisational structure. It remains understood that Brembo’s Corporate and Compliance Tools are an integral part of thelocal compliance model.
In 2023, the Chairman of the Supervisory Committee verified, through the questionnaires sent to the various CGMof the Group Companies, the implementation status of thelocal compliance programmes and reported thereon to theBoard of Statutory Auditors, the Audit, Risk & Sustainability
Committee and, in its six-monthly report, to the Board of
Directors.

Related Party Transactions Procedure
Conflicts of interest
The purpose of the Procedure is to ensure the transparency and the substantive and procedural propriety of Related Party Transactions, unless they are concluded at arm’s
length, with a view to safeguarding the Company’s higher interests. This Procedure also governs disclosure to the
public of Related Party Transactions, if any.
In fact, a conflict of interest exists when a personal interest or activity interferes or could interfere with Brembo’s
task. According to the Group’s Code of Ethics, any situationthat could generate a potential or actual conflict of interest must be communicated to the immediate superior of
the person concerned. The Guidelines set out procedures toensure that decisions taken at any level are not influenced
by personal interests and/or relationships, but are in the
exclusive interest of Brembo; similarly, commercial agreements are to be signed or continued solely on the basisof objective criteria, including quality, price and reliabilityof the business partner in question. In particular, Directors
are required to inform the other Directors and the Board of
Statutory Auditors of all interests that they have, on their3.2 Responsible Business Management Systemown account or on account of third parties, in a given company transaction, specifying its nature, terms, origin andscope and whether they are involved in a voting procedurein relation to the transaction, regardless of whether it isa transaction of lesser or greater importance. Moreover,senior personnel/high-level executives (other than Directors and Statutory Auditors) and/or those with the power
to bind the Company in relations with third parties and/or
required to engage in relation with public offices, are also
required to report entities or persons related to them who
might, even in the abstract, give rise to conflicts of interests.
The company thus periodically issues a specific disclosure
request to such individuals.
As an integration to the Brembo S.p.A.’s RPT Procedure,
but consistent with the latter, the Group companies implemented a local procedure that sets out the operating processes to identify their respective Related Parties and Related Party Transactions, as well as their approval procedures.

Antitrust Code of Conduct
This Code was approved by Brembo S.p.A.’s Board of Directors on 9 November 2017, after having been examinedby the Audit, Risk & Sustainability Committee and the Supervisory Committee, to reinforce the business structure’s
sensitivity and culture regarding compliance with competition rules, also in light of the provisions of its own Code of
Ethics, providing appropriate monitoring tools. The Codesupplements the Antitrust Compliance programme already implemented in the company and provides a practical guide, focused on the Group’s business, that clearly
illustrates the prohibitions imposed by antitrust legislation,
the most widespread areas or situations where there is arisk of violations, as well as the correct conduct to be adopted to ensure full compliance with antitrust legislation in
the various countries in which Brembo operates. The Codeis a point of reference for the Company’s compliance programmes and applies to employees of both the Parent andthe European subsidiaries. In these latter, an Addendum(translated into the local language) is also provided for,with the aim of adapting (where necessary) employees’ behaviour in accordance with local legislation.
Antitrust training is part of the company training schemethat is planned on an annual basis and constantly updated
when needed.
In 2023 as well, Brembo took the steps necessary to reduce
the risk of engaging in conduct not in keeping with faircompetition. From the evaluations carried out it emergedthat the training and ongoing monitoring activity andthe application of preventive provisions and measurescontinued constantly and positively thus mitigating any
possible impact. M&A activity was also carried out in accordance with the legislation and safeguards, for example
through the formation of clean teams and the establishment of clean team protocols before launching any Due
Diligence activity.
In line with 2022, in 2023 as well no legal action relating
to unfair competition, antitrust and monopolistic practices
were reported. The audit conducted with the support of an
external legal advisor with expertise in the field yielded apositive outcome and was concluded without remarks.

Privacy Policy
The Group ensures coordinated management of privacy
obligations in Brembo S.p.A. and in Group European Companies through the Privacy Supervisory Committee, Data
Protection Officer (DPO), and the Privacy Officers identified
by specific company area and through specific procedures
aimed at regulating the various issues, obligations, any
new processing and reporting in accordance with the regulatory requirements on the protection of personal data.
Approved by Brembo’s Board of Directors on 8 May 2018, after having been examined by the Audit, Risk & Sustainability Committee and the Supervisory Committee, the privacy
policy outlines the fundamental principles for the protection of personal data. More specifically, the Policy provides
detailed instructions directed at all the Group’s people inrelation to the handling of personal data, in compliancewith the European General Data Protection Regulation
679/2016/EU. This document also identifies the parties andfunctions involved in the processing of Personal Data, their
specific roles and responsibilities. In addition, the Group set
up the e-mail account, which is the main channel for data
subjects to exercise their rights. Stakeholders can also use
this email address to bring any policy breach or any request
for additional information relating to Personal Data protection to the attention of the Group’s Data Protection Officer(DPO). The dedicated email is present in each European
country where Brembo has a subsidiary; in any case, only
the Data Protection Officer and authorised personnel has
access to it. The DPO, according to the privacy proceduresin force, reports every year to the Audit, Risk & Sustainability Committee, the Board of Statutory Auditors and theSupervisory Committee and finally the Board of Directors

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based on the main activities carried out during the year
in terms of personal data protection. The matters cover, inparticular, the main legislative innovations on the subject,
the internal and external control activities carried out, any
breaches of Personal Data that have occurred, the numberof requests received from data subjects, the training activity carried out and planned and any requests received fromthe Supervisory Authorities.
In its Report issued for 2023, the DPO confirmed as appropriate the level of alignment with the GDPR.
In 2023, there were no reported instances of data protection breach or customer data leaks at Brembo.

Code of Basic Working Conditions
Introduced in 2011 and approved by the Board of Directors,
this Code highlights Brembo’s commitment to the recognition that its most important asset is the workforce in all its
worldwide sites. It sets out the underlying principles assuring a respect for workers’ human rights.
When defining this Code, the Group was inspired by themain international sources and standards, including theUnited Nations Universal Declaration of Human Rights, theTripartite Declaration of Principles concerning Multinational Enterprises, the ILO’s Social Policy and the Guidelines
for OECD Multinational Enterprises. The publication of thisdocument, which expresses Brembo’s attention and commitment to employee protection and local development,
has enabled the Company to involve its own supply chain
and disseminate its own way of doing business ethicallyin accordance with the values set out in Brembo’s Code of
Ethics. In 2019, the Code was updated to include the issues
associated with human trafficking and modern slavery.

Policy on Non Discrimination and Diversity
Through this policy, approved by the Board of Directors,
Brembo recognises and promotes the positive value of diversity and demonstrates its commitment to combating
any form of discrimination, based on gender, ethnicity, belonging to minority, social origin, civil status, family status
and any other personal condition, within the context of all
working relations. In particular, Brembo undertakes to ensure that all employees have an equal opportunity to access work, services and programmes irrespective of personal characteristics not related to performance, competence,
knowledge or qualifications.

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Modern Slavery Statement
In accordance with the contents of the British Modern Slavery Act 2015, Brembo publishes its Modern Slavery Statement annually (lastly amended approved by the Board of
Directors dates in May 2023). Said statement was adopted
for Brembo S.p.A. and for some of the Group Companies
concerned by the requirements specified in the legislation (Brembo Poland Sp.zo.o., Brembo Czech s.r.o., Qingdao Brembo Trading Co.Ltd and J.Juan SAU). It should be
noted that the Company AP Racing, wholly controlled by
Brembo S.p.A., prepares and approves its own Statement
and publishes it on its own website. The Statement describes the organisation, sensitive areas and actions andmeasures adopted by the Company to ensure the absenceof any form of “modern slavery, forced labour and humantrafficking” both in respect of its own employees and thoseof the supply chain.

Sustainable Procurement Policy
Published in March 2022 and approved by the BoD, thispolicy complements and supersedes the Supplier Code of
Conduct and the document on the Purchasing Policy. On
the one hand, it aims to achieve and ensure a supplier selection process based on principles of ethics and sustainability, while also inducing suppliers to adopt an increasingly
sustainable approach to the business.
This Policy is directed at all Brembo suppliers in all countries where the Group operates, which by signing it undertake to abide by the rules and standards in effect in theircountries of operation, or, by the principles set out in the
Policy, where stricter, by adopting the measures necessary
to comply with them within a reasonable period. The proposed points of attention are broader than those previously applied, including climate change and IT security.

Environmental Policy
It constitutes a statement by Brembo of its full endorsement of sustainable development principles, substantiatedby its commitment towards minimising the use of non-renewable resources, and keeping the use of renewable
ones within the limits of their regeneration capability. In
its capacity as a global and responsible corporation and bymeans of its Environmental Policy, Brembo wants to direct
its activities through tangible steps towards a development
model which strikes the right balance between economic
and financial objectives and social and environmental responsibility, across the entire value chain.

3.2 Responsible Business Management System

Quality ManualThis constitutes an important tool to guide and direct
corporate processes towards quality improvements. It describes the general organisational criteria and the Corporate policies towards quality by laying down the core operational principles of every process involved.

Quality Policy
It expresses Brembo’s commitment towards customer satisfaction and continual improvement, and constitutes anintegral part of the Quality Manual. It lays down the main
quality goals such as, besides customer satisfaction andcontinual improvement, constant product, service and internal process innovation, furthering the development andthe engagement of suppliers into innovation and continual
improvement processes, as well as the satisfaction of all
employees by promoting the development of skills and encouraging professional growth.

Occupational Health and Safety Management
System Manual
Issued in 2020 by the Parent, this sets out Brembo’s commitment to a continual improvement in performance inthe health and work safety area within the Group. It sets
explicitly the principles which govern the health and safety
aspects and the main goals related to these aspects, suchas improving workplace health and safety, through integrated planning of the phases of each individual process,with the goal of minimising all risks for workers. This is illustrated within an organic Management System both atGroup and Plant level55.

Global Tax Strategy and Brembo S.p.A.’s
Tax Strategy
The Brembo Group adopted a Tax Strategy to bring Group
Companies in line with best practices with regard to tax
management, both at global and local level.
Both documents became effective as of 2020, after approv-

al by Brembo S.p.A.’s Board of Directors, and are available
to the public on the Group’s website: http://www.brembo.
com/en/company/corporate-governance/codes-policies.
The Global Tax Strategy and Brembo S.p.A.’s Tax Strategy
have been approved by the Board of Directors of Brembo S.p.A., which is therefore responsible for defining theguidelines included in the Tax Control Framework and arereviewed periodically by the Group Tax Department.
The Tax Department monitors the most recent tax updates
and developments. It provides tax advice and adequate
training for company functions about tax law and selected topics, in addition to assessing and monitoring the risk
associated with the interpretation of new tax laws and/or provisions that create uncertainty (in light of a specificguide envisaged in the Policy, designed to manage interpretation risk).
The Code of Ethics, 231 Model, Anti-bribery Code of Conduct, Antitrust Code of Conduct and Privacy Policy apply to
all members of the BoD, managers, employees and Third
Parties who engage in activities with, and on behalf of,
Brembo, regardless of whether they do so as direct employees of the Company, in all Countries in which it operates.
In general, Brembo’s compliance and ethics commitments
are communicated by the Human Resources and Organisation GCF during the onboarding process, in the form of an
information package, including the Code of Ethics, applicable National Collective Labour Agreement and Welcome
Kit. Such individuals must provide Brembo with a signed
statement attesting to receipt of the information package
and certifying that they are fully aware of the appended
documents and undertake to comply with the rules they
establish. Subsequent updates are communicated throughnewsletters or by posting on notice boards.
The Model and other codes are published in full version on
the company Intranet portal, whereas the parts regarded
as not particularly sensitive and thus able to be externallycirculated are published on Brembo’s website.

55 For further details, please refer to the Appendix.

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BREMBO’S ACTIONS TO COMBAT CORRUPTIONAs described in the previous paragraph, Brembo has adopted various rules of conduct and general principles of behaviour set out in the Group’s documents in order to preventthe commission of bribery offences and their impacts on
the Company, such as the distortion of fair competition on
the market, whether committed between private participants, or of the public order, where they involve the Public
Administration. In particular, the reference is to the offences of bribery and corruption, inducement of bribery andcorruption and smuggling and offences relating to payment instruments other than cash.
In order to mitigate the risk of non-compliance in relation
to strictly legal issues, in addition to the adoption of the
231 Model and the establishment of the Supervisory Committee, the Group Compliance System provides for the definition of principles of guidance, communication and control and specific compliance programmes by the Executive
Chairman, in addition to the power for the Chief Executive
Officer to ensure that such guidance is implemented at alllevels, in Italy and internationally. Lastly, the Group Compliance System provides for coordination between those withcompliance responsibilities and the various actors whomake up the System ensured by the joint participation of
the Corporate & Compliance Manager and the Head of Risk
Management, as permanent members of the Audit, Risk &Sustainability Committee. The above is in addition to theadoption of a compliance programme by each Subsidiaryand the performance of monitoring and audit activities bycontrol entities and the Internal Audit GCF.
The anti-corruption actions pursued by Brembo vary according to the type of counterparty and take various elements into consideration when assessing whether toinclude “231 Clauses” (as described below) in the related
contracts. These elements include the relationship developed over the years or the counterparty’s commitment tocompliance matters: the more consolidated the relationship and the more the counterparty shares and implements
CSR and Compliance principles similar to those of Brembo, the more the latter is willing to accept “231 Clauses”,

thus allowing the Ethical and Informative purpose of such
clause to be considered implied and achieved. With reference with joint ventures, Brembo shall ensure that the latter promote the principles and contents of the Model andBrembo’s Corporate and Compliance Tools within the respective spheres of competence.
With reference to dealings with Business partners, Brembo has decided to give concrete application to the principles set forth in the Code of Ethics and 231 Model byadopting different measures according to the type of partner. These include:••

the undertaking of an ethics-specific due diligence on
suppliers, to the sole exclusion of intellectual service
providers through the "Supplier Pre-assessment Questionnaire";
the inclusion in the General Supply Terms and contractual specifications applicable worldwide, of compliance clauses56.

Brembo is served by the following bodies to ensure thatthe founding principles, expressed in the Code of Ethics
and other codes of conduct, are observed and that thecontrol system set out in the 231 Model is implemented
effectively:

Supervisory Committee
Made up of 3 members, the current Supervisory Committee will remain in office until the end of the current Boardof Directors’ term.
In accordance with Brembo’s 231 Model concerning therequirements for members of the Supervisory Body (autonomy, independence, integrity and professionalism),best practices and case law on this subject, the Supervisory Committee’s members were identified amongst persons complying with the above mentioned requirements,
as well as with specific inspective and advisory skills. Its
Chairperson is external to the company’s organisation.

56 Brembo also requires its suppliers to comply with applicable regulations and the relevant provisions of Brembo’s Model and the internal rules, but also
subjection to audits aimed at verifying that the supplier also properly fulfils its compliance obligations.

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3.2 Responsible Business Management System

OFFICE HELDMEMBERSATTENDANCERATE AT MEETINGS(11 MEETINGS IN 2023, IN
ADDITION TO PRELIMINARYMEETINGS)

Independent Expert

Giovanni Canavotto

100%

Chairman

Independent Director

Elisabetta Magistretti

100%

MemberBrembo’s Chief
Internal Audit Officer

Matteo Tradii

100%

Member

The task of the Supervisory Committee is to monitor, receive and report to the Board any irregularity or breachof the Organisational, Management and Control Model, adopted pursuant to Legislative Decree No. 231/01 by
Brembo S.p.A., as well as breaches of the Code of Ethics
and Anti-bribery Code of Conduct, or more generally of theprovisions included in the Group’s regulations.
In 2023, no violations of laws subject to the penalties provided for in Legislative Decree No. 231/2001 were reported.
The Supervisory Committee provides the Board of Directors and the Board of Statutory Auditors with a half-yearlyreport focusing on the checks on Sensitive Activities pursuant to Legislative Decree 231/2001, critical issues emerged,
an analysis of the reports received, if any, and the related
actions undertaken.
In addition, the Supervisory Committee must implement
specific information flows, irrespective of the periodic flow
forecast, if circumstances exist that make it appropriate ornecessary to provide reports.
The Supervisory Committee submits periodically, and at
least once a year, a written report on the activities undertaken to the Chairman of the Board of Directors, the Executive Director in charge of the internal control and risk
management system, the Chairman of the Board of Auditors and the Chairman of the Audit, Risk & Sustainability
Committee.

Internal Audit GCF
It ensures the performance of independent, objective assurance and financial advice activities aimed at improving
the organisation’s efficacy and efficiency. Internal Audit
GCF is tasked with assisting the Group in achieving its objectives through a systematic professional approach orient-

POSITION WITHINTHE AUDIT, RISK &SUSTAINABILITY COMMITTEEed towards providing value-added services in all areas within its purview, to achieve ongoing improvement. It is also
charged with verifying and assessing the operability andsuitability of the Group’s Internal Control and Risk Management System, in a manner consistent with the implementing Guidelines and Policies approved by Brembo’s Board of
Directors. Since July 2023 the Internal Audit GCF has been
responsible for managing reports through the new Legality Whistleblowing web platform and the Legality Whistleblowing Mobile App, used by all European subsidiaries(with the exception of Poland, whose government has yet
to ratify the European Directive).

Legal & Corporate Affairs GCF
It draws up and executes programmes for preventing andmitigating the Group’s administrative and criminal liability,
also with reference to anti-bribery, antitrust and GDPR-related issues.

Human Resources & Organisation GCF
It receives and ensures that reports about the Code of Basic
Working Conditions and the Policy on Non Discrimination
and Diversity are analysed and handled correctly.
In addition, the Group has implemented specific tools toassure that the compliance culture is disseminated and therules of conduct developed are implemented effectively.

Whistleblowing Procedure
As of July 2023, he Whistleblowing Procedure of Brembo
S.p.A. has been updated to include even greater protections for whistleblowers pursuant to European Directive
2019/1937 and Italian Legislative Decree No. 24/2023. Concurrently, a new platform used by all European subsidiaries— with the exception of Poland, whose government has
yet to ratify the European Directive — was activated with

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the aim of properly managing the channel for prompt reporting of violations relating to:•••regulatory provisions on matters relating to the Brembo Group’s activity;
the Brembo’s Organisational, Management and Control Model according to Legislative Decree No. 231/01(with the involvement of the Supervisory Committee,
if needed);other Brembo’s codes of conduct, policies and corporate procedures.

Through the use of IT procedures and cryptography, thisplatform protects the confidentiality of the identity of thewhistleblower and the persons involved, as well as the content of the report and the related documentation.
The whistleblowing channel is managed by Brembo’s Internal Audit GCF as an autonomous office with personnel
specifically trained to manage said channel.
Anyone connected to the Brembo Group’s business — suchas employees, contractors, suppliers, customers, shareholders and individuals in administration, management, control, supervision or representation functions — may reportany cases of violations or irregularities without fear of potential retaliation through the following channels:••

the Legality Whistleblowing web platform;
the Legality Whistleblowing Mobile App.

In the case of reports concerning Brembo Group companies, the whistleblower may choose to send the report directly to the parent, Brembo S.p.A., or, where existing, tothe local internal channel governed by a specific procedure.
In order to ensure that it is circulated as broadly as possible, the Whistleblowing Procedure is posted on company
notice boards, in addition to being published on Brembo’s
Intranet portal and the platform accessible from Brembo’s website. All employees have been informed of its
publication.
To complement the above mentioned channels open to
all stakeholders, given the organisational model that theGroup has adopted around the world, the management
facilities of the Human Resources and Organisation GCF
remain available to employees, allocated in the various organisational units (Plants, Countries, GBUs and GCFs).
Finally, in some Group countries — within the framework

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of local Employee Assistance Programmes (EAPs) — evenmore specific local reporting systems and channels — similar in function to that of the Corporate Supervisory Committee — have been developed to eliminate language
and cultural barriers and practices that would have beenencountered if only a single corporate channel had been
maintained.
For example, in Italy, with the “Sportello di Ascolto” (listening service) available to those who so request, in “situationsof individual hardship” it is possible to meet with an external professional, including in virtual mode, in a fully confidential manner and without the Group knowing the reason
for the request for the meeting.
In line with previous year, in 2023 as well there were no
corruption-related complaints reported within the Group.
Therefore, no reports were submitted to the attention of
the Board of Directors.

Training schemesSpecial training schemes for the Group employees are also
provided to ensure compliance with and adherence to theprinciples of the Code of Ethics, the Anti-bribery Code of
Conduct, the Antitrust Compliance Programme and the
231 Model. The training initiatives, which include face-toface lessons and e-learning tools, are tailored to the rolecovered and the level of risk to which individuals are exposed. Brembo’s training and development offer also includes courses on the Anti-bribery Code of Conduct and the
Antitrust Code, to which employees can register.
The training campaign, which includes in-depth analysis of
issues relating to ethics, antitrust, anti-corruption, compliance with Model 231/01 and GDPR, continued steadily in
2023 as well. In particular, the total number of employees
who have received anti-corruption training in 2023 is 1,857,
i.e. 14% of the entire workforce of the Group (including 16%
managers, 25% white-collar employees and 9% blue-collar
employees).
As far as the members of the Brembo S.p.A.’s BoD are concerned, the basic compliance training (including the Anti-bribery Code of Conduct) is carried out routinely at thestart of the term of office, whilst specific matters are examined in subsequent years of the three-year term.
The e-learning course on regulatory principles under the
new General Data Protection Regulation (GDPR) and on

3.3 Fiscal Responsibility

the implementation of these principles in Brembo continues to be active. This course is addressed to all Authorised
Personnel of Brembo S.p.A. and La. Cam. Srl. The course
has been extended to all the Group’s European companies,

BREMBO ACADEMY
The training and development offer
proposes a selection of courses pertaining
to Model 231 issues dedicated to specificroles involved in 231 processes.

that are implementing it from time to time it with the necessary local adjustments.
Antitrust training is an integral part of the annual Brembo Academy’s training and is constantly updated based on
any requirements and needs that might arise. To this end,
specific training sessions are organised periodically, usuallyin class and sometimes with external experts. A classroom
training session was organised in 2023. On the basis of thefundamental principles of the Antitrust Code of Conduct,
the session focused on the main new developments in thearea of distribution contracts.

3.3 FISCAL RESPONSIBILITY
An organisation’s tax approach defines how it balances tax
compliance with business activities and with ethical, socialand sustainable development expectations.

•

In accordance with the principle of "Corporate Responsibility",
Brembo acts in accordance with the values of honesty andintegrity in the management of its tax activities, being
aware that tax revenues are one of the main sources of theGroup’s contribution to the economic and social development of local communities.

•

Therefore, Brembo’s conduct is oriented towards compliance with the tax rules applicable in the countries in whichit conducts business, managing tax risk responsibly, while
protecting its image and reputation. In this regard, Brembo
considers taxes as a cost of doing business, which must be
managed as such, with the aim of safeguarding the company’s assets and pursuing the primary interest of creating
value for stakeholders over the medium to long term.
To ensure tax compliance, Brembo has adopted a Tax
Strategy at both global Group and local level through the
Global Tax Strategy and the Brembo S.p.A. Tax Strategy.
The goal is to pursue:•

long-term growth of company assets and protection of
the Brembo Group’s reputation;
proper, timely calculation and payment of taxes dueby law and fulfilment of the related obligations;containment of tax risk, understood as the risk of violating tax laws or the abuse of the principles and purposes of the tax system.

The Tax Strategy, whose principles and guidelines draw inspiration from the Group’s Code of Ethics, was approved in2019 by Brembo S.p.A.’s Board of Directors and is available
on the Company’s website57.
Furthermore, the Group has a Group Tax Compliance Model, which identifies the roles and responsibilities of those involved in tax management, defining the information flows
between these parties and the related processes to achieve
an effective and, where possible, preventive control of tax
risk; a policy is also in place to manage the risk of interpretation of tax provisions.
In order to translate this Strategy into daily business activities, Brembo has set up a Group Tax Department, which is
responsible for implementing the guidelines on this matter

57 Brembo S.p.A.’s Tax Strategy is available on the following website: https://www.brembo.com/en/Codici/Brembo%20Global%20Tax%20Strategy-Strategia%20Fiscale%20di%20Brembo%20S.P.A.pdf

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established by the Top Management; ensuring compliancewith local and international tax obligations; monitoring themost recent updates and developments in tax matters; promoting a culture of compliance with tax regulations by providing training to all personnel, including those not involvedin the Tax Function; assessing and monitoring the risk arising from the interpretation of new laws and/or tax provisions that create uncertainty; and updating the Tax Strategy.
The Group maintains a cooperative and transparent relationship with the tax authority, making sure that the latter can gain full understanding of the events underlying
the application of tax rules. With a view to consolidatingtransparency in relations with the authorities, Brembo
ensures the correct application of local and national tax
laws and regulations and of the OECD Transfer Pricing
Guidelines. Brembo does not carry out transactions without valid economic reasons merely to obtain tax advan-

tages, nor does it exploit privileged tax jurisdictions for
tax avoidance purposes.
Moreover, Brembo actively participates in the technical debate on new tax policies, through dedicated working tables
and trade associations, such as Confindustria and Assonime.
There are multiple benefits resulting from implementing the Tax Control Framework (e.g. mitigation of the responsibilities of company bodies, reduction of situationsof conflict with revenue authorities due to preventive risk
management, prevention of violations of tax laws and apotential reduction of the penalties applied to the Group)and they all contribute to informed, scrupulous and effective management of the tax variable. Moreover, the Tax
Control Framework forms part of Brembo’s Corporate andCompliance Tools and it is thus to be considered as an essential component of Brembo’s 231 Model.

TAX CONTROL FRAMEWORKThe Tax Strategy is a fundamental element of the Tax Control Frameworkadopted by Brembo, which not only
defines procedures for the sound andprudent management of taxation,
but is also one of the instruments
used to prevent offences that could
give rise to corporate criminal liability,
as enshrined in Italian law by Legislative Decree No. 231 of 8 June 2001,
and the associated reputational risks.
In this respect, the Tax Control Framework ensures the controls prescribedby the Organisational, Management
and Control Model and, through a setof rules, procedures and organisation-

al structures, it allows for the identification, measurement and management of tax risk, defined as the risk of
infringing tax regulations or acting ina way that is in conflict with the principles and purposes of the law.
The Tax Control Framework, first implemented in 2020, is now fully in linewith the OECD guidance, as implemented by the Revenue Agency. The
framework rests on four pillars:• Fiscal Strategy;• Risk assessment: through appropriate checks to detect tax risks andmitigate their effects;

The information channels set up by the Company to ensure the reporting of irregularities or violations of the Code of
Ethics, the Anti-bribery Code of Conduct and the Organisational, Management and Control Model according to Legislative Decree No. 231/01 are also suited to reporting unethical or unlawful behaviour relating to taxation.
In this regard, it is appropriate to highlight that these chan-

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• Governance: identification of theroles and responsibilities of those
involved in tax management, definition of information flows between
these parties and related processes;• Monitoring: periodic activities toassess the effectiveness of the Tax
Control Framework.
In addition, the Tax Control Framework
includes a General Report to inform the
Top Management team, on an annual basis, on the performance of tax risk
management. The Tax Control Framework was adopted also by Brembo North
America and Brembo Mexico in 2023.

nels are also available from the Brembo’s website (https://www.brembo.com/en/company/corporate-governance/whistleblowing-to-supervisory-committee).
In accordance with an internal procedure, all tax returns, documents and events were shared with and evaluated by theauditing firm.

3.4 Internal Control And Risk Management System

3.4 INTERNAL CONTROL AND RISKMANAGEMENT SYSTEM
A company’s ability to manage corporate risks effectively serves to protect its value over time and foster
its long-term sustainability. Based on the national andinternational best practices, Brembo has accordingly established and implemented an Internal Control and Risk

Management System (ICRMS), which is an integral partof the Group Corporate Governance and brings together
specific rules, procedures and organisational responsibilities for the proper identification and management ofcorporate risks.

BREMBO AND THE GOVERNANCE SYSTEMS EXCELLENCE INDEX

On the 19th edition of the annual
Corporate Governance Workshop, theEuropean House - Ambrosetti presented the results of the Governance
Systems Excellence Index (EG Index),
a tool that monitors the health of governance systems according to a set of
qualitative and quantitative indicators.
The EG Index 2023, which refers to the2022 financial year and is based on
public sources, shows the continuous

improvement over time in the governance quality of the main companies
listed on Borsa Italiana, especiallylarge and medium-sized firms.
It should be noted that Brembo
achieved excellent scoring ranking,inter alia, first for its Control and Risk
Management System, which takes
into account factors such as the time
devoted to the meetings of the Audit,

The Internal Control and Risk Management System(ICRMS) represents the set of organisational structures,
rules and procedures that allows the main business risks
within the Group to be identified, measured, managed andmonitored, while helping the Company to be run in a manner that is sound, correct and in line with the objectives
defined by the Board of Directors, favouring the adoption of
informed decisions consistent with the risk profile, as well
as dissemination of a proper understanding of risks, lawfulness and corporate values.
The Board of Directors is tasked with defining the general
guidelines of the ICRMS, so that the main risks pertaining to Brembo S.p.A. and Group subsidiaries are properly identified, as well as adequately measured, managed
and monitored. It shall also set criteria to ensure thatsuch risks are compatible with sound and proper management of the Company. The Board of Directors is awarethat the control processes cannot provide absolute assurances that the company objectives will be achieved andthe intrinsic risks of business prevented, in particular in aperiod characterised by strong volatility, uncertainty within the macro-economic context and growing geopoliticalrisks. However, it believes that the ICRMS may reduce andRisk & Sustainability Committee andof the Board of Statutory Auditors, thepresence of independent Directors,
the Statutory Auditors’ participation
rate, the average number of offices
held by Statutory Auditors, Risk Management and the definition of Succession Plans for the Top Management,
the adoption of an Organisationalmodel and the composition of the Supervisory Body.

mitigate the likelihood and impact of risk events associated with human error, wrong decisions, fraud, violationsof laws, regulations and company procedures, as well as
unexpected events such as, for instance, the Israeli-Palestinian conflict, the war in Ukraine and previously the
global pandemic.
The ICRMS is subject to regular examination and controls,
taking account of developments in the Company’s operations and reference context, as well as national and international best practices.
The Board of Directors has identified the other main corporate committees/functions relevant for risk management purposes by defining their respective duties andresponsibilities within the ICRMS scope. In detail:••the Audit, Risk & Sustainability Committee, tasked withsupporting the Board of Directors on internal control,risk management and sustainability issues;the Executive Director in charge of the Internal Control
and Risk Management System, tasked with identifying
the main corporate risks by executing risk management guidelines and verifying their adequacy;

Annual Sustainability Report 2023

119

3. Company Structure••

the Head of Risk Management, responsible for supporting the management team in identifying, assessing and mitigating risks relating to the performance ofcorporate activities, with a view to managing the Company in line with strategic objectives;
the Managerial Risk Committees, tasked with defining
risk management plans with respect to company projects and/or specific risks.

Brembo’s general risk-management policies and thebodies charged with risk evaluation and monitoring are
included in the Corporate Governance Code (approvedon 17 December 2021), under “Policies for the implementation of the Internal Control and Risk Management
System”, in its latest edition issued at year-end 2021, in
the Risk Management Procedure, the Organisational,
Management and Control Model according to Legislative
Decree No. 231/2001 and in the reference layout for preparing accounting documents (as per Article 154-bis of
TUF), to which the reader is referred. In particular, the
new Policies for the implementation of the Internal Control and Risk Management System identify the overalldesign of Brembo’s Internal Control and Risk Management System, taking into account the changes made to
Brembo’s Corporate Governance Manual, the evolution of
Brembo’s organisational structure with new second-tierand first-tier control roles, the new company strategy andsustainability goals, changes in the legislative and regulatory framework, as well as international best practices

adopted by Brembo.
The Internal Audit GCF evaluates the effectiveness and efficiency of the overall Internal Control and Risk Management System on a regular basis and reports the results tothe Executive Chairman, the Chief Executive Officer, theBoard of Statutory Auditors, the Audit, Risk & Sustainability Committee and the Supervisory Committee of Brembo
S.p.A. with reference to specific risks connected with compliance with Legislative Decree No. 231/2001. At least on anannual basis, it also reports to the Board of Directors.
The Executive Director in charge of the Internal Control
and Risk Management System fully enforces the risk
management guidelines based on principles of prevention, cost effectiveness and continuous improvement, as
approved by the Board of Directors.
The Chief Executive Officer, in addition to coordinating therisk mitigation actions implemented by the competentmanagement team, has a key role in the management ofpotential corporate “crisis” events, including for example
the global pandemic and most recently the Israeli-Palestinian conflict and the war in Ukraine, in relation to which
he directly takes on the direction of the Crisis Management Committee, in accordance with the provisions of thecompany Guidelines for crisis management.
With reference to risk management, Brembo has defined
the following guidelines and procedures:

RISK MANAGEMENT POLICY

A Risk Management Policy based on ISO 31000 standard, which establishes the Group’s general direction
and policies relating to risks, including those relating tosustainability, their management and harmonisation ofprocesses. The risk management policy pursues a varietyof aims, including: increasing the likelihood that company objectives will be met, improving the identification

120

Annual Sustainability Report 2023of threats and opportunities, setting up a reliable basefor the decision-making process and strategic planning,
improving loss prevention and incident management,
as well as improving organisational resilience. The risk
management Policy is approved by the Board of Directors and the related information is published on a yearlybasis in the financial and non-financial statements.

3.4 Internal Control And Risk Management System

RISK MANAGEMENT PROCEDURE

A Risk Management Procedure, designed to provide
Guidelines in terms of methodology and operating guidance to support the risk management process, organised
into the following series of consecutive phases:••

Risk identification: designed to identify the sources ofrisk, events and their causes, identifying the respective
areas of impact and potential consequences, to create
a complete risk catalogue including those in the areas
covered by Italian Legislative Decree No. 254/2016 (relating to environmental, social and employee matters,
respect for human rights, anti-corruption and bribery
matters), relevant for and pertaining to the Company’s activities and characteristics;
Risk analysis: designed to assess the risks by determining the probability of occurrence and the impact,using exercises and simulations identifying possible

ESTABLISHINGTHE CONTEXTRISKASSESSMENT

scenarios, causes and potential consequences, considering any cascading (domino effect) and/or cumulative
effects;•

Risk evaluation: designed to support the decision-making processes by identifying risks that need
to be treated and the related priorities for action or
implementation;•

Risk treatment: designed to select one or more options for changing risk exposure, both in terms of impact and probability of occurrence, and to implement
such options through specific action plans.

The list of the main risks, the related scenarios and impacts regarding the Group is mapped within the ERM (Enterprise Risk Management) risk register, which is updated
annually concurrently with the register of Environmental,
Social and Corporate Governance (ESG) risks. In order tofoster the integration of the risk assessment in defining thebusiness choices at the various company levels, creating
and disseminating a common risk management culture
throughout the Group, the Enterprise Risk Management
Model provides for the involvement of the whole company
management and in particular of several specific parties:•

Risk
identification•
COMMUNICATIONAND
CONSULTATION

Risk
analysisRiskevaluation

RISK
TREATMENTMONITORING
AND REVIEW•

the Head of Risk Management, who is tasked with
updating the Group Risk Report through workshops
in coordination with the Global Central Functions, theGlobal Business Units and the main geographical areas, and, following examination by the Audit, Risk &Sustainability Committee, submits it on an annual basis to the Board of Directors;
the ICRMSD, who reports on an annual basis on risks,
impacts and action plans;
the Audit, Risk & Sustainability Committee and the Supervisory Committee, that report on a half-yearly basis
to the Board of Directors on risks and the related impacts, each for their respective tasks.

Risks are monitored at regular meetings, where results, opportunities and risks are analysed for all the business units
and geographical areas in which Brembo operates.
At these meetings, further necessary actions are also defined to mitigate new internal or external risks emerged
during the year in the performance of corporate activities.

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121

3. Company Structure

RISK MODEL

A risk management process founded on a Risk Model consists of the following risk families:••

external risks: connected to the occurrence of external
events that are difficult (or partly) difficult to predict or
can be influenced by Brembo; based on its international footprint, the Group is exposed to the country risk,
which is however mitigated by the adoption of a policyof business diversification by product and geographicalarea, so that the risk can be balanced at Group level. In
addition, Brembo constantly monitors the developmentof political, financial and security risks associated withCountries in which the general political and economic
climate and tax system could prove unstable in the future, so as to take any measures suited to mitigating
the potential risks;
strategic risks: connected to events that could influence strategic policies or the organisational and business model adopted by Brembo. This family includes
risks related to the business model adopted, target mar-kets, innovation, investments, sustainability and management of relations with stakeholders in general;•

operating risks: connected to inefficient and ineffective processes, with negative consequences for
Brembo’s value creation. This family includes risks
concerning personnel, production, product quality, environment, health and safety, supply chain, information technologies (IT), business interruption (linked to
production sites being unavailable and their operating
continuity), planning and reporting processes, as wellas legal and compliance aspects;•

financial risks: connected to ineffective and inefficient management of events arising in key financial
markets: market risk, commodity risk, liquidity risk andcredit risk.

For further information about risk families, reference
should be made to the Risk Management Policy included
in 2023 Annual Report58.

LEGISLATIVE DECREE No. 254/2016

During 2023, Brembo continued along its development
path designed to reinforce its Sustainability Model andcomply with the non-financial statutory disclosure requirements, introduced with Legislative Decree No. 254/2016.
Brembo has updated the risk assessment in the Sustainability area, using the assessment criteria aligned with theGroup’s risk management methodology.
Set out below are the main risks identified by Brembo, as
well as the mitigation measures put in place to date andthe future objectives for managing them.

Environmental risks
Brembo pays particular attention to compliance with theenvironmental requirements specified in legislation of

58

122

www.brembo.com, section Investors, Reports.

Annual Sustainability Report 2023

countries where it operates, with a particular focus on atmospheric emissions, waste management and water discharges. Brembo also carries out regular audits to checkthat its production sites worldwide are in compliance withenvironmental requirements. The Group has implemented
an environmental risk analysis methodology, which is an
integral part of the Environmental Management System
certified to ISO14001:2015. To strengthen this management system, Brembo has also adopted a software called
ORME (Obligation and Risk Management for Environment
and Energy), which includes a module designed to facilitate the management of the risk assessment process.
Environmental risks include the acquisition by the Group ofland for production purposes, or existing businesses, withcontaminated subsoil caused by events prior to purchase.

3.4 Internal Control And Risk Management System

To monitor such risk, Brembo carries out environmental
due diligence work to identify any critical issues within theacquisition process.
In order to map and monitor these critical issues, Brembo
is also exposed to the risk associated with achieving the"Net Zero" objective. In this regard, Brembo has set up
a Task Force devoted to formulating and implementing
measures designed to ensure achievement of this objective. For further details on this topic, please refer to para-graph “Greenhouse gas emissions”.
Lastly, another risk is emphasised, i.e., the risk related topossible non-compliance with the regulations on chemical products, applicable to substances, mixtures and articles, which are becoming increasingly numerous andcomplex worldwide. The management of this risk is responsibility of the Environment & Energy area. In fact, it
supports the GBUs in interpreting regulations and verifying their applicability.

TASK FORCE ON CLIMATE-RELATED FINANCIAL DISCLOSURE:BREMBO DRAWS INSPIRATION FROM THE TCFD’S RECOMMENDATIONS

Brembo is strongly committed toresponding to the challenges posedby climate change, to improve theGroup’s resilience and seize the opportunities arising from the transition to a low-carbon economy. A keyelement to achieve this objectiveis the active management of climate-related risks and opportunities
and their impacts. In this context,

with the help of an external consultant, Brembo conducted a Climate
Change Risk Assessment (CCRA) on
all relevant business activities anddepartments, in line with the recommendations of the Task Force on Climate-related Financial Disclosures(TCFD).
The project, launched at the end of2020 and completed in 2021, provided the scenario analysis and thequalitative-quantitative assessmentof the main risks and opportunities
related to climate change.

Risks relating to climate change
Brembo is strongly committed to responding to the challenges posed by climate change to improve the Group’s
resilience and seize the opportunities arising from the transition to a low-carbon economy. A key element to achieve
this objective is the active management of climate-relatedrisks and opportunities and their impacts. In this context,
Brembo conducted a “Climate Change Risk Assessment”(CCRA), in line with the recommendations of the Task Forceon Climate-related Financial Disclosures (TCFD). The evaluation was updated in 2023 with the support of a specialised consulting firm and involves a scenario analysis andqualitative and quantitative assessment of the main risks
and opportunities with regard to physical and transition
risks over various time horizons.

Companies that adhere to the TCFD
are required to communicate in aclear, comparable and consistent
way the information that investors
and stakeholders need to know tocorrectly assess climate-related risks
and opportunities and how this canimpact companies such as Brembo. The assessments relating to thepotential financial impacts of climate-related risks and opportunities
continued in 2023.
For further details please refer to the
Appendix.

In terms of physical risks, most of the Group’s sites are exposed to acute atmospheric events, which, however, on thebasis of the technical evaluations performed, do not giverise to particularly significant exposure to the risk of damage to property and/or the business. Some manufacturing
plants are exposed to flood risk. However, thanks to the existing prevention and control systems, including hydraulicbarriers, the residual risk exposure is modest, in addition
to being transferred to the insurance market in financial
terms. At the level of physical risks associated with chronic
events, some Group sites are exposed to the risk of water
shortages. To reduce this exposure, the Group has already
implemented — and is further investing in — measures
to reduce water consumption, differentiate water sources(typically water mains and wells drawing on aquifers) andAnnual Sustainability Report 2023

123

3. Company Structure

implement water purification and storage systems that enable the utmost flexibility in the various industrial and civil
uses at plants.
Transition risks and opportunities have been mapped overtime horizons to 2030 and 2050. The main opportunities
are attributable to the trend towards an increase in theshare of electric vehicles in the global automotive market,
with the possibility of extending the Group’s segments and"value chain" thanks to the new products being studied by
the Group (such as "Sensify"), as well as to the appreciationand spread on the market of products with a high environmental performance (such as Greenance discs). The mainrisks are associated with the spread of forms of mobility
representing alternatives to the use of traditional road vehicles, higher costs due to the implementation of Net Zeropolicies and the possible implementation of systems oftaxation associated with externalities (such as "cap-andtrade" systems).

Risks relating to supply chain management
and protection of human rights
These risks concern any failure on the part of suppliers tocomply with Brembo’s Sustainable Procurement Policy regarding issues, such as respect for human rights — including issues relating to human trafficking and modern slavery —, environmental protection, safeguarding workplace
health and safety and the fight against corruption.
Brembo requires its direct material suppliers to complete
a self-assessment questionnaire about its commitment tothe aforementioned topics. The completed questionnaires
are then analysed by the areas involved with the aim of ensuring a consistent assessment of suppliers and the related sustainability risk profile. In addition, Brembo involves
a number of direct material suppliers, selected based on
the critical issues of the country and production process, inon-site sustainability audits. Finally, the Group requires its
suppliers to develop and maintain an environmental management system compliant with ISO 14001 standards andto base their own conduct on the main international declarations and guidelines on mankind and human rights.
Within the area of human rights, Brembo also assesses thepotential risk involving non-conformity with regulations relating to data protection (e.g., the GDPR in the European
Union).

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Annual Sustainability Report 2023

To safeguard against this risk, Brembo has adopted anddisseminated special policies containing data protection
principles, acquired a Processing Record and defined anorganisational structure with suitable privacy-related roles
and responsibilities, also providing for continual training
activities devoted both to a specific target of workforce andto all employees.

Risks relating to human resources
Brembo identifies and manages both risks relating tohealth and safety and risks relating to human resource
management. Brembo’s commitment to safeguarding andpromoting workplace health and safety translates into athorough risk management process, as described in the relevant section, through a continual analysis of the criticalissues and adoption of a preventive approach. The Groupputs into place numerous mitigation measures. These include testing of automatic systems within the sites; thedissemination of the LOTO (Lock Out Tag Out) procedure,
and research into new load handling systems. The ongoingtraining and promotion of a culture of safety, health and ergonomics in all work environments is also key in the healthand safety area.
The Brembo Group is also exposed to the risk arisingfrom the “Great Resignation” phenomenon marking thepost-pandemic global labour market. To safeguard against
this risk, Brembo constantly monitors the job market in thegeographical areas of interest and periodically reviews thesalary entry levels for the most critical roles. To help withthe personnel search and selection process, the Group also
employs specialist companies, as well as structured andstrategic partnerships with the academic world, local research bodies and educational institutions, within a broader context of talent attraction and retention policies.
An additional element of challenge derives from the current
trend towards technological innovation, which involves theintroduction in all company processes, and not just production processes, of automation, data, AI, software, etc.
This phenomenon is associated with the risk of failing to acquire and constantly update new skills through hiring andtraining processes.

3.4 Internal Control And Risk Management System

To monitor this risk, Brembo carries out a periodic mappingof the skills of the professional families of the key functions/areas, so as to identify the areas that will be involved in targeted training pathways or will see development throughthe introduction of skills from outside. In view of continuous
improvement, Brembo Academy — already operational in
the technical and engineering disciplines — will be consolidated and constantly expanded, and partnerships with
universities and R&D centres will be reinforced to develop
courses on emerging new trends.

Risks connected to corruption
and regulatory complianceThis area includes risks related to the entity’s corporate
liability in the event of breaches of anti-corruption regulations with particular reference to the countries considered
to be most critical. To mitigate this risk, Brembo has adopted instruments such as: the Organisational, Management
and Control Model according to Legislative Decree No.
231/2001, which ensures transparent, ethical behaviour by
employees and promotes a preventive Group policy; theAnti-Bribery Code of Conduct, adopted for the first time in
November 2013 (approved and circulated to employees)
and updated, in its second edition, in July 2017, as well as
integrated with a special Addendum for China; the Supervisory Committee; and, finally, an entities’ administrativeand criminal liability compliance programme in accordance with applicable local legislation of Countries where
it operates through Subsidiaries.
Brembo promotes the implementation of the general principles of conduct at all Subsidiaries through theBrembo Corporate and Compliance Tools. The system ofdelegation of power and authority, which is based on theseparation of powers and ensures the full traceability andtransparency of behaviour, in particular in cash transactions, is also an integral part of this system. The risk ofcorruption is also constantly monitored through regular
audits. In addition, in order to spread and promote a culture of compliance and ensure the optimal dissemination
and adoption of ethical values, specific training plans are
conducted for all employees, in Italy and internationally,on general principles of conduct. 2023 reconfirmed Brembo’s commitment to monitoring, updating and refining
the compliance system in order to ensure maximum
adherence to the regulatory changes in the Countries inwhich it operates, including with regard to the obligations

related to the transfer of the Group’s registered office in
the Netherlands.

Social risks
The very nature of the sector in which Brembo operates
makes the quality and safety of products one of the major risks pertaining to the social sphere, with particularregard to new and innovative products that require specific know-how both during the supplier selection andassessment phase and during the production process. To
best tackle such risks the Group has acquired a Quality
Management System, featuring Guidelines common to
all plants, in order to manage all phases of the production process (design, development and production) basedon homogenous quality standards and indicators. Again
in order to ensure maximum safety, Brembo carefully
controls the supplier selection and monitoring process
through supplier site visits to check their ability to meetthe quality and process requirements. In addition, withreference to the quality and safety management of new
and innovative products (e.g. SENSIFY™), the Group plans
to implement further action plans to manage, monitor
and mitigate the potential risks arising from the development and production of innovative products.
In the current context, the risk associated with a production shutdown scenario, regardless of the cause (e.g.
natural event, fire, machine downtime etc.) may have repercussions for Brembo’s stakeholders, such as suppliers,
consultants, etc. Therefore, although this is a risk scenariothat is typically assessed from the point of view of thefinancial and operational impact, this risk is considered tohave an impact also from an ESG standpoint.
Lastly, it should be noted that there is a risk for the Groupto suffer cyber-attacks with a potential impact in termsof loss of own or third-party sensitive data. To safeguard
against this risk, Brembo has implemented the controls
provided for by the ISO 27001 standard for which it is certified and is committed to ongoing improvement of its IT
systems’ protection tools. 2022 also saw the implementation of a Security Operation Centre (SOC) which operates
under the responsibility of the Head of Information Security, who every six months reports to the Audit and Risk
Committee on the progress made in improving cyber-security procedures.

Annual Sustainability Report 2023

125

PEOPLE

15,653
BREMBOPEOPLE*A WINNING
TEAM
Brembo supports the professional growth and value development of its People,
both as individuals and as part of an organisation.
With the same intent, it promotes multiculturalism,
inclusion and integration of diversity,
promoting the wellbeing of its People in the workplace.
* The number of Brembo People includes employees and temporary workers.

ISO 45001
CERTIFIED
PLANTS**

88%
OVER

350,000** 36 plants out of 41 are certified; SBS started the certification process.

TRAINING HOURSPROVIDED
IN 2023

4. People

4. PEOPLE

over

15,653350,000

59

Brembo People

Training hours
provided in 2023

88%

60

ISO 45001
certified plants

4.1 PEOPLE WITHIN BREMBO596061
People are the key element of Brembo’s success, its mostprecious strategic asset that allows the Group to innovate
and achieve increasingly challenging goals. Brembo pays
particular attention to human capital, strongly believingthat it is people’s knowledge and skills that determine thereal competitive advantage that is useful for anticipating
and overcoming challenges in an evolving, complex andstrongly dynamic context, influenced by the digital and thetechnological innovation. Therefore, in line with its strategic
Pillars (Global, Digital, Cool), Brembo promotes the growth,development and continual enhancement of skills.

13,654

61

Employees

Today, more than 13,000 employees work for Brembo every
day with dedication and passion. Brembo People are over
15,000.
Aware of the strategic value of each of them, Brembo works
every day both to boost the sense of belonging and the motivation and to consolidate its image as a “best place to work”.
Brembo is committed to offering a comfortable and welcoming work environment, including in terms of work tools and human environment, so as to facilitate performance, exchange,
discussion and collaboration, with a guide that favours strategic direction in the development of the organisation.

+697

More employees
in 202359 The number of Brembo People includes employees and temporary workers.
60 36 plants out of 41 are certified; SBS started the certification process.
61 It also includes the Brembo Reinsurance AG’s employee, not included in the scope of this document.

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Annual Sustainability Report 2023

39 years
Average ageof employees

4.1 People within Brembo

Creating a positive environment also means giving each
person the space and freedom to make decisions andpropose ideas, encouraging the individual contribution
to achieving long-term goals that make Brembo a solid,
lasting and sustainable company. Moreover, all Brembo’s
actions are centered around the adoption of healthy lifestyles enabling people to best express themselves and be
productive.
To strengthen people’s engagement, specific initiatives
were implemented such as the People Day in Japan and
the Czech Republic and the "Trunk or Treat" in the UnitedStates, dedicated to all employees and their families. Town
Hall Meetings were organised in various Group plants andcorporate areas to share the results achieved and the objectives, but also to promote active dialogue and listening
with all personnel.
The Brembo brand’s major ability to attract talented people, distinguished by their professional experience andabilities, their passion, their upholding of the Group’s values and their aptitude to work with others, is also reflected in the growth in the workforce recorded by the Groupduring 2023, with an increase of 697 in the number of new
employees compared to the previous year.
Brembo Group is thus able to rely on a dynamic, highly
professionalised and qualified team. 46% of the workforce

has achieved a medium-high level of education, and 25%
graduated university qualification. Of the employees with auniversity qualification, 56% holds a degree in engineering.
Following this approach, it is natural that constant search
for and attraction of talents are a priority for Brembo. It
is for this reason that the Group has structured a searchand selection process, defined within the framework of
the Group’s specific Guidelines, also founded on the principles of diversity and equal opportunities, so that candidates’ skills and value are appreciated fully and without
discrimination. At the same time, Brembo also acts on
the internal workforce in order to provide its People with
opportunities for professional growth and employment
stability, pursuing a constructive dialogue with trade unions where required. As proof of this commitment on thematter of employment 80% of Group employees are hiredwith an indefinite-term contract. In addition, the Group,
consistent with the contents of the Code of Basic Working
Conditions, applies collective bargaining when the law sorequire. In particular, as of today, 70.5% of the workforce iscovered by a collective bargaining system. For employees
which are not covered by the collective bargaining system,
the working conditions and the terms of employment are
defined by local labour regulations or agreements concluded between each employee and the Company, according to the country in which the Company operates.

PEOPLE HIRED BY GEOGRAPHICAL AREA62 AND GENDER (No.)

GEOGRAPHICAL AREA

2021

2022

2023

MEN

WOMEN

MEN

WOMEN

MEN

WOMEN

Europe

483

130

719

209

852

253

America

873

161

1,301

257

802

216

Asia

850

52

962

137

1,215

127

Total

2,206

343

2,982

603

2,869

596

62 The three macro-areas include the following countries: Europe: Denmark, Italy, Poland, United Kingdom, Czech Republic, Spain and other European
countries; America: Brazil, Mexico, United States; Asia: China, Japan and India.

Annual Sustainability Report 2023

129

4. People

PEOPLE TERMINATED63 BY GEOGRAPHICAL AREA62 AND GENDER (No.)
GEOGRAPHICAL AREA

2021

2022

2023

MEN

WOMEN

MEN

WOMEN

MEN

WOMEN

Europe

424

103

556

117

615

153

America

658

140

613

642

765

176

Asia

700

46

822

73

1,026

84

Total

1,782

289

1,991

832

2,406

413

PEOPLE HIRED AND TERMINATED60 BY AGE GROUPS IN 2023
AGE GROUPS *HIREDTERMINATED≤29.9 years

2,072

1,505

30-40.9 years

894

779

41-50.9 years

370

308

≥ 51 years

129

227

3,465

2,819

Total

*	As of 2023 the representation of the breakdown by age groups has been brought in line with GRI requirements.

PEOPLE HIRED BY AGE GROUPS (%)

10%

PEOPLE TERMINATED BY AGE GROUPS (%)

4%

11%

8%

≤29.9 years

30-40.9 years
41-50.9 years≥ 51 years

26%

28%

60%

53%

62 The three macro-areas include the following countries: Europe: Denmark, Italy, Poland, United Kingdom, Czech Republic, Spain and other European
countries; America: Brazil, Mexico, United States; Asia: China, Japan and India.
63 Terminations also include employees whose employment relationship ended on 31 December 2023 and do not include employees whose employment
relationship ended on 31 December 2022 as the latter were already included in the previous year’s report.

130

Annual Sustainability Report 2023

4.1 People within Brembo

Turnover has never been a structural problem for Brembo
over the years, as shown by the related data. However, inview of specific situations detected in some countries, theGroup continues to monitor the labour market in the different geographical areas of interest, the remuneration provided for with regard to the most critical roles, the terminations
and the quality of voluntary resignations, while analysing
the reasons why people consider job opportunities outside
the Group. Particular attention is paid to the turnover of people serving in key roles in Brembo’s core processes. Lastly,
as a safeguard measure for issues relating to the attraction
and retention of talents, the Group is committed to applying different strategies, such as communication and recruitment campaigns for specific professional profiles and close
collaboration with Universities, Educational and Training Institutions and Research Institutes, as well as specific actions
connected with the results of the Global Engagement Survey
carried out every three years and ad-hoc Pulse Surveys dedicated to specific organisational scopes.
Non-financial reporting is seen by the Group as an opportunity to analyse consolidated annual data: if critical issues arise
during this phase or at other times of the year, the resourcesin the Human Resources and Organisation GCF allocated in
the various organisational and/or geographical units are involved immediately. If the critical issues are confirmed, theywould be discussed in the context of the corporate events —as provided for by Brembo’s Committee System — with the
involvement of the responsible point of contact.
As already mentioned, the Group believes that active collaboration with the university and research institutions, aswell as all local higher education systems present in thevarious areas where it operates, is a key part of its own talent search and selection process. In the 2022-2023 academic year, Brembo has set up structured and strategic partnerships with over 42 Universities worldwide (Italy, Denmark,China, Poland, India, Spain, USA and Mexico), with a 27%
increase compared to the previous 2021-2022 year, and it
carried out more than 113 activities in collaboration withthe academic world (+41% compared to the 2021-2022year). These partnerships are mapped annually throughthe structured “University Relations Mapping” process involving all the Group’s companies.
Among the various initiatives undertaken in several countries, including Italy and the United States, Brembo continued to provide scholarships to employees and employees’
student children having the stated requisites and educational qualifications.

Moreover, Brembo takes part in several job fairs and meetings with universities and schools in Italy, Europe and internationally, promoting initiatives aimed at both making
contact with those about to graduate and new graduatesinterested in the Group — illustrating them the career
opportunities — and fostering dialogue and contacts between the Group and the external context, local communities and the academic world.
In this regard, mention should be made of the various “industrial doctorates” (Executive PhDs) made possible by collaboration between universities and Brembo: for example,
a Brembo Person was awarded a PhD for studying the particles generated during the braking process as the basis for
reducing fine particles in urban areas.
With reference to the world of work, maintaining communication channels with the Universities is proving to befundamental, both for promoting a constant interchangeof experiences, and for multiplying the occasions for reciprocal knowledge and put valued people in contact with theworld of Brembo and its wealth of job opportunities.

SOME OF THE
SPONSORSHIPS OR
PARTNERSHIPS IN
THE ACADEMIC ANDSCIENTIFIC AREA
• Accademia del Freno (whose namewas changed into Brembo Learning
Program@ PoliMI), Milan Polytechnic• Formula SAE Italy – Formula Electric Italy,
Student Competition• Sodalitas Foundation: Deploy your Talents• Partnership with Kettering University
for the Cooperative Education

Another activity that plays a major role in developing suchsynergies is the organisation of specific training paths (provided in a virtual mode) during which Brembo’s managers
and specialists make available their skills and experienceto students, giving them the opportunity to spend timein the company on thesis, research or internship projects.
Within the framework of several specific training initiatives such as the Brembo Learning Program @PoliMI, organised in collaboration with Milan Polytechnic, Brembo

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4. People

people with a high level of expertise make available theirknow-how and experience, illustrating for students at the
Polytechnic nearing graduation how Brembo products
are created, from conception to production, and Brembo’s
evolution into a provider of digital solutions to foster the
adoption of more flexible, innovative processes. Brembo
also collaborates with the Kettering University, the prestigious University of Michigan-Flint (USA) as Cooperative
Education Partner, allowing students to alternate periodsof attendance of courses with hands-on working experiences in which they develop professional skills in parallelto their academic learning.
Collaboration with training and research bodies and institutions is also instrumental to promoting, within the reference areas, the development of essential technical andscientific skills to meet the constant market changes effectively, as well as investing in training and developmentof competences — and the subsequent employment ofqualified resources — also in areas generally characterised by low unemployment, such as for example in the
Czech Republic and Poland.
In 2023, Brembo participated in the work of the “UniBgirls& STEM” project group of Confindustria Bergamo, for thepromotion of workshops focused on the topic of womenin business and guiding young female students towards
technical-scientific degree courses. The proposal stems
from the desire to increase the capacity to attract and select female staff and to mitigate preconceptions in favourof gender parity. In addition to participating in career days
dedicated to promoting diversity and gender inclusion, in
partnership with the Sodalitas Foundation, Brembo took
part in the “Deploy Your Talents” project, focused on overcoming gender differences in STEM subjects. Participationin this initiative was confirmed for 2024 as well.
With regard to STEM disciplines, according to the rankings of the Most Attractive Employers relating to Italy foruniversity students and young professionals drawn up by
Universum Italia, a leading international employer brand-

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ing firm, Brembo ranks 31st according to students and43rd according to young professionals, within a ranking
system that rewards the top 100 companies in Italy.
Within the general framework of the Group’s talent management system, in addition to the structured annual
processes, Brembo also designs and implements specifictalent pool recruitment projects, linked to both local andglobal needs. The 2022-2024 LIFT Program – Leaders’ International Fast Track Program continued in 2023. Brembo’s graduate programme reached its fifth edition in May
2022. Every nine months, the programme rotates participants to a new organisational and geographical area, overa total period of 27 months, with the final destination only
identified at the end of the process. In December 2023,
participants began the third and final rotation, which will
be followed by the final assignment to a specific area ofthe company in September 2024. In this final rotation, halfof the participants were assigned to organisational areasof foreign sites.
Brembo offers those embarking on their professional career in the Group — as an integral part of its Employee
Value Proposition — a stimulating and positive environment in which to develop and feel themselves to be leading players. This is confirmed — net of other consultation
initiatives — by the results of the Global Engagement
Surveys carried out every three years and reserved for all
Group’s workforce and which collect in an anonymous
form perceptions on the company’s environment, level ofmotivation and engagement resulting from their own professional experience in Brembo. In addition, in 2023 two
ad-hoc Pulse Surveys were conducted, with a focus on two
indicators: engagement and enablement. The first ad-hoc
Pulse Survey, carried out in April, involved white-collar
employees in four countries: the UK, Poland, the Czech
Republic and Brazil. The second, conducted in October,involved white-collar employees in approximately ten areas of the company in Italy and internationally. The next
edition of the Global Engagement Survey is planned forthe end of 2024.

4.1 People within Brembo

BREMBO’S INTERNAL MEDIAInternal communication represents an opportunity for
Brembo to inform all employees of what is happening in
the Group, celebrate the Company’s successes and involve
all People in awareness-raising activities and active participation in corporate life. The sharing of information, news
and stories that tell and describe the Group reality is, infact, a priority aspect of Brembo’s culture and identity.

88 news items published on
the Red Portal Intranet in 2023
1,956 monthly users viewed
at least one editorial content on
the Red Portal Intranet
89 news items published in the
MyB House Organ
14,500 copies of the House Organ
MyB distributed worldwide

Brembo communicates with its People primarily throughthe following channels: the MyB House Organ, distributedat all sites and plants, and the intranet Red Portal, which
can be used by all employees who have a computer. The
Brembo intranet Red Portal features editorial content produced in Italian and English which is published periodically. The news released on the platform varies from theinstitutional area to the product, from motorsport to engagement and internal awareness-raising campaigns onsustainability issues. They cover the main activities carriedout by the Group and present infotainment content — animations, videos, podcasts — with the aim of engaging as
many Brembo People as possible.
The main indicators of the effectiveness and efficiency ofthe company Intranet are the number of news items published and the number of (distinct users) who access thiscontent monthly.
The new house organ was launched in print and digitalformat in 2023. It brings together the 20-year heritageof the historic MyBrembo, redesigned in form and substance — starting with the name. MyB Brembo People’s
Magazine is the new magazine, published every fourmonths. It showcases the contributions of Brembo People
and makes significant, creative use of photography, alongwith adopting a new approach to spreading informationthat also leverages digital content available for use via QR
code. It is produced in eight languages (Italian, English,
Polish, Spanish, Czech, Brazilian Portuguese, Chinese andHindi) and distributed to all Brembo plants worldwide.
The topics covered are chiefly of an institutional nature(events, awards) or relating to the vision and mission (thepillars), business matters (products, applications, fairs),
motorsport (products, victories), news about the plants(growth, technology) and topics relating to safety and environment. Great attention is also paid to sharing Brembo
People’s stories and to the Group’s Corporate Social Responsibility activities.
The main indicators relating to this internal means of communication are the number of contents published andthe number of copies printed and distributed at all plants
around the world.

2021

2022

2023

No. of news items published during the year

103

121

88

Average No. of users who viewed at least one
editorial content

1,865

1,894

1,956

93

90

89

22,091

16,362

14,500

Red Portal Intranet

House Organ MyB
No. of news items published during the year
No. of copies distributed worldwide

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4. People

Inform and engage. The strategic role of Internal Communication finds its expression in communication campaigns that today increasingly, play a central role in sharing company’s values and engaging people, face-to-faceand remotely.
One example of this is the “Put Your Face on It” initiative.
Created in 2022, this project is part of the programme toraise awareness about the 17 sustainable Development
Goals (UN 2030 Agenda) launched in 2019 with the campaign “We support SDGs”. “Put Your Face on It” aims tospread and share all the good practices that Brembo
People put in place in their professional and private daily lives, through short amateur videos broadcast in theplants, published on the company Intranet and website.
People engagement also underpins the promotion of thesafety culture, which follows on from the “I am safety”
campaign launched in 2019. Awareness-raising initiatives in this regard resumed resumed in 2022 in Italy andChina, with dedicated workshops and the spread of com-munications materials, was intensified in 2023, througha “bottoms-up” feedback campaign at Italian sites. The
most significant messages that emerged from the interviews and cards filled in by people during the dedicateddays are represented in graphical form on cubes set up
at sites, becoming an integral part of future communications campaigns on the subject.
Motivation and engagement are also two of the focal elements of the information campaign on Cybersecurity,
which was particularly intense in October 2023, a monthdedicated to IT security. Short modules with helpful suggestions, interactive experiences and phishing tests to increase awareness of the network’s risks at the global level.
Finally, the creation of a new internal platform for reporting violations and irregularities, Legality-Whistleblowing,inspired the launch of a campaign to raise awareness ofthe existence of a dedicated channel and of shared accountability for whistleblowing between both those who
make and receive reports.

4.2 D
 IFFERENT WAYS OF BEING
BREMBO PEOPLE
Diversity is a strength for a global Company like Brembo,
which operates and is constantly confronted with very diverse situations from the economic and cultural point ofview. With a “zero-tolerance” approach towards any form of
discrimination, every day Brembo is committed to promoting an inclusive environment capable of supporting senseof belonging. It encourages its People to feel they havea leading role in the Group’s success, fostering a cultureof respect for diversity and inclusion and fully respecting
the points of view, individualities and special qualities ofeach person. Indeed, Brembo is aware that discrimination
harms the wellbeing of any discriminated person.
An awareness of the value and the opportunities arisingon diversity has led Brembo to create a highly multicultur-

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al team in which, out of 100 Group employees, 26% workin Italy, 17.4% in Poland, 14.4% in China, 13.4% in Mexico,7.4% in the Czech Republic, 8.4% in India and 5.2% in the
United States, while the remaining 7.8% are distributed
between Brazil, Denmark, Japan, the United Kingdom,
Spain and other countries.
As far as gender differences are concerned, men make up
the predominant percentage of total employees. In fact,
82% of employees are men against a female componentof 18%. Such distribution reflects in particular some of the
intrinsic characteristics of the Automotive jobs market. The
female component is in any case in line with the previous
year and is more significant amongst white collars, representing 26% of the workforce in this category.

4.2 Different Ways of Being Brembo People

BREMBO EMPLOYEES BY GEOGRAPHICAL AREA* AND GENDER (No.)

Women
Men

6,205

Europa2,314America

438
2,648

Asia
0

1,000

2,000

1,550

7,755

2,752
498

3,146

3,000

4,000

5,000

6,000

7,000

8,000

PERSONNEL CHANGES BY GEOGRAPHICAL AREA COMPARED TO 2022*+ 388

Europe+ 77

America

+ 232

Asia

* The three macro-areas include the following countries: Europe: Italy, Denmark, Poland, United Kingdom, Czech Republic, Spain and other European countries;
America: Brazil, Mexico, United States; Asia: China, Japan and India.

Brembo also promotes the integration of different generations, giving a voice to the young and valuing the competencies and the leadership of senior personnel. More specifically, the breakdown of employees by age group sees 22%
under 29.9, 33% between 30 and 40.9, 29% between 41 and50.9 and 16% over 51.
One of the Group’s initiatives designed to highlight and enhance the contribution of the younger generations is the
Gen Z Forum which involves young people, belonging to
the Group, from Generation Z and Millennials from different
entities in terms of geography and professional families.
With this initiative, Brembo created an incubator and accelerator of innovative ideas, an open and inclusive space where
the company’s new generations can share thoughts and reflections, working with a bottom-up, start-up and creativity
approach. It is supported by several external facilitators on
methodological aspects, internal facilitators, who bring theirexperience and know-how, and by the sponsors, members of
the C-suite. The third edition of the Gen Z Forum was concluded in November 2023 with the presentation to the CEO andmembers of the C-Suite of five ideas potentially capable ofmaking Brembo a Company capable of delivering disruptive
innovations. As many as four of these ideas were selected
and will be implemented in 2024 in one of the three Pillars.

Brembo’s focus on diversity and inclusion takes shape in
the recruitment of people with disabilities, in accordancewith the rules and practices laid down in applicable legislation. In particular, 126 people with disabilities were working
in the Group at 31 December 2023.
In addition, also the training programmes contribute to creating awareness on diversity-related issues and raise awareness at all levels of the company regarding respectful andinclusive behaviour through specific training programmes
dedicated to different job positions. In 2023, training for bothmanagers and professionals continued to be delivered at
the Brembo Academy. For example, the Group’s training anddevelopment offerings have been enriched by the Learningand Development Program for Brembo Global Executives,
targeted to newly appointed Group executives or executives
recently hired from outside the Company in partnershipwith the SDA Bocconi Business School, as well as by the programme dedicated to blue-collar supervisors.
Finally, these initiatives are supplemented by social events
to disseminate a culture in which diversity and inclusion
practices are enhanced, such as the activities organised in
Brazil, India and the USA to mark Women’s Day and thesigning of the Gender Diversity Pledge by the subsidiary
SBS Friction in Denmark.

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4. People

EMPLOYEES BY AGE GROUP AND GENDER (No.)
2021

2022

2023*

MEN

WOMEN

TOTAL

MEN

WOMEN

TOTAL

MEN

WOMEN

TOTAL

≤ 29.9 years

2,545

336

2,881

2,742

444

3,186

2,532

443

2,975

30 – 40.9 years

3,028

625

3,653

3,254

751

4,005

3,691

860

4,551

41 – 50.9 years

2,666

658

3,324

2,967

762

3,729

3,075

833

3,908

≥ 51 years

1,534

263

1,797

1,702

334

2,036

1,869

350

2,219

Total

9,773

1,882

11,655

10,665

2,291

12,956

11,1672,486

13,653EMPLOYEES BY CLASSIFICATION LEVEL AND GENDER (No.)
2021

2022

2023

MEN

WOMEN

TOTAL

MEN

WOMEN

TOTAL

MEN

WOMEN

TOTAL

Managers

502

86

588

565

98

663

580

118

698

White-collar
employees

2,102

724

2,826

2,416

864

3,280

2,632

935

3,567

Blue-collar
employees

7,169

1,072

8,241

7,684

1,329

9,013

7,955

1,433

9,388

Total

9,773

1,882

11,655

10,665

2,291

12,956

11,1672,486

13,653EMPLOYEES BY CLASSIFICATION LEVEL AND AGE GROUP (No.)
2023*≤ 29.930-40.9

41-50.9

≥ 51

TOTAL

3

160

311

224

698

White-collar employees

739

1,400

936

492

3,567

Blue-collar employees

2,233

2,991

2,661

1,503

9,388

Total

2,975

4,551

3,908

2,219

13,653

Managers

EMPLOYEES BY CLASSIFICATION LEVEL AND AGE GROUP (No.)
2022
≤30

31-40

41-50

≥ 51

TOTAL

7

149

309

198

663

White-collar employees

799

1,151

897

433

3,280

Blue-collar employees

2.380

2,705

2,523

1,405

9,013

Total

3,186

4,005

3,729

2,036

12,956

Managers* In 2023, age groups were changed according to the GRI standard, as indicated in the table. Data relating to 2022 and 2021 were based on the following age
groups: ≤ 30.9; 31-40.9; 41-50.9; ≥ 51.

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4.2 Different Ways of Being Brembo People

Policy on Non Discrimination and Diversity, the institutional Whistleblowing channel, updated in 2023 and managed by the Supervisory Committee, as well as anotherspecific mechanism to gather any reports on behaviour
that does not comply with company policies are used.
This channels are also configured as a possible search
for assistance and/or advice when the reporting person
needs it. Naturally, to complement the channels open
to all stakeholders, given the organisational model that
Brembo has adopted around the world, the management
facilities of the Human Resources and Organisation GCF
remain available to employees, allocated in the variousorganisational units (plants, Global Business Units, Global Central Functions, geographical areas). Following any
contact, the consequent hierarchical reporting procedureis activated - where necessary - which culminates in the
periodic Meeting between Chief Human Resources & Organisation Officer, the Executive Chairman and the CEO,
where the need to manage any specific urgencies or critical issues is raised, including for instance the violation ofhuman rights.

A further sign of Brembo’s commitment to developing anorganisation that fosters and values multiculturalism is its
proximity to local sensibilities, accompanied by influencesfrom other cultures. In this regard, taking the managerial
team as a reference, out of 698 managers operating in the
different countries, approximately 89% were born in the
country where they are working, while 11% comes froma different country. The inclusion in management of both
members of the local community and members with different backgrounds and origins improves the individual Company’s ability. On the one hand, it allows to understand theactual local needs and, on the other, to develop an open
and global mindset increasingly mindful of diversity.
For Brembo, ensuring a fair and inclusive work environment is an essential tool for ensuring there are no episodesof human rights infringements. In this regard, with reference to the protection of diversity and respect for people
and workers’ human rights, Brembo continues to avail of— in addition to the provisions also set out in the Group’s
Code of Ethics —, the Code of Basic Working Conditions,
the Brembo’s Modern Slavery Statement and the Policy on
Non Discrimination and Diversity. In particular, through thelatter Brembo set out the guidelines on how to promote
the principles of diversity, equity and inclusion (DEI) within
the Group and disseminate a solid DEI culture. The Policy
is also accompanied by the Brembo Charter on Diversity,
Equity and Inclusion (Brembo DEI Charter) which promotes virtuous behaviour to be put into practice at workon a daily basis in order to be more inclusive and respectful of the diversities within the Group. These documents
reflect and represent the Group’s universal beliefs and thefoundations of the employer-worker relationship. In detail,they confirm and establish rules of conduct regarding childlabour, forced labour, human trafficking, the right to work,
freedom of association and collective bargaining; harassment and discrimination, health and safety, working hours,
remuneration, corruption, environment and sustainability,
social commitment and local communities.

Finally, the Group provides its employees access to several
structured programmes like its Employee Assistance Programs (EAPs), such as those in partnership with local operators and/or vendors in the USA and UK. In Italy Brembo
has for years run a “sportello di ascolto” (listening service)
which offers employees the opportunity to have a seriesof meetings with a professional outside the Group, when
they are faced with particular situations that present personal difficulties. The same tool was also implemented inIndia in 2023.
No episodes of workplace discrimination were brought toBrembo’s attention in 2023, through the available channels.
The Brembo Group promotes precise policies designed todefine organisational tools able to promote remote working and people’s work-life balance. In this area the Groupalso offers its employees the option to subscribe to parttime working schemes, which were taken up, in 2023, by
308 employees, of whom 78% were women.

In order to monitor the effective implementation andrespect of the Code of Basic Working Conditions and the

EMPLOYEES WITH PART-TIME CONTRACTS BY GENDER
2021

2022

2023

MEN

WOMEN

TOTAL

MEN

WOMEN

TOTAL

MEN

WOMEN

TOTAL

46

225

271

58

235

293

69

239

308

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137

4. People

4.3 P
 EOPLE DEVELOPMENT

People and their skills are the main pillar for the deployment of the company strategy. In fact, the strengtheningof skills and the promotion of talent are the primary leversof the development of each employee and at the sametime an enabling factor for the strategy that can anticipate and satisfy the business-related demands and create
the Group’s identity culture.
In 2023, Brembo confirmed its commitment to continuing with important investment in the training offer andlaunching various training initiatives with an increasingly
inclusive and global approach in favour of transversal enrichment and greater collaboration between Group Companies’ employees and instrumental to the achievementof the strategic objectives.
One of the global and inclusive training projects of 2023
as well, in keeping with the previous years, is the Brembo Global Induction Programme (B-GIP) which offers theGroup’s new hires (white-collar employees) an overview
of business, organisation and corporate culture throughvirtual sessions run by the managers of the various areas.
This programme aims to facilitate alignment and a senseof belonging, as well as accelerate the induction process
for new employees, fostering contact and discussion withcolleagues belonging to different professional families,
cultures and geographies. The programme, divided into
two editions at two different times of day in order to involve people in all geographical areas, consists of 22 virtual sessions organised into 11 modules. In 2023, it involved
560 newly hired white-collar employees and managers.
In parallel, in 2023 Brembo also organised the Basic Induction Programme for newly appointed Directors andStatutory Auditors of Brembo S.p.A., designed to ensure
adequate knowledge of the Group’s area of activity, products, company dynamics, principles for proper risk management and the regulatory framework of reference. Other global training programmes closely associated with thecompany’s strategy include the Artificial Intelligence andMachine Learning programme and the renewed Cultureof Data course, taught by internal teachers and external
professionals, as part of efforts to expand the range of AI
expertise and applications in the company environment.
The Company academies, such as the R&D, Disc and Manufacturing Academy, run by internal teachers certified by
the Brembo Academy, are constantly updated and enriched with new content.

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Annual Sustainability Report 2023

For Brembo it is essential to identify and spread strategic
skills. Therefore, in 2023 as well it continued its processof certifying Domain Experts: Brembo employees withthe critical skills needed to ensure that their knowledge
is transferred within the Group through internal teaching
and the drafting of specific technical manuals. In July, 82
Domain Experts were certified during a ceremony which
represented for Brembo an occasion for recognising theactive participation of employees in pursuit of excellence.

more than

350,000

training hours provided in 2023

The Group has, therefore, ensured a structured, flexible
and inclusive training offer differentiated by target population, complemented by additional tools such as individual and group coaching, mentoring and tutoring and,most recently, the Career Advisory Desk launched in Italyon an experimental basis.
The training provided “remotely”, through virtual classrooms which also involved People of all Group geographies or in e-learning mode, has been strengthened andrenewed thanks to the attention paid to reformulating
the way content is presented. In particular, over 21,000
training hours were provided in e-learning mode in 2023.
On average each employee received 26 hours of training
in 2023. This figure reached an average of 27 hours per
year for managers, 29 hours for white-collar employees
and 24 hours for blue-collar employees. Over the course of
the year, 24% of employees participated in training abouthuman rights and the associated procedures, for a totalof 9,273 hours.

4.3 People Development

TRAINING PROVIDED BY TYPE OF CONTENT (% ON TOTAL HOURS)

3%

2%

1%
34%

6%

Training on product/process quality
management and improvement
Professional training
Health & Safety training
Managerial training
Language training
Code of Ethics and compliancewith Leg. Decree No. 231/2001
Training on environmental
management
Other

10%

12%

32%

AVERAGE HOURS OF TRAINING BY CLASSIFICATION LEVEL AND GENDER
AVERAGE HOURS OF TRAINING BY CLASSIFICATION LEVEL
2021

2022

2023*

Managers

24

29

27

White-collar employees

29

32

29

Blue-collar employees

22

31

24

2021

2022

2023*

Men

26

33

27

Women

16

24

19

AVERAGE HOURS OF TRAINING BY GENDER

AVERAGE HOURS OF TRAINING BY EMPLOYEE
2021

2022

2023*

24

31

26

*2023 did not present the same training hours as 2022, which was characterised by a high number of personnel from outside thecompany entailing a significant investment in the initial training, especially with reference to Safety and the Environment training.

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139

4. People

To ensure an effective management of training activities,
Brembo avails of a specific Group procedure that defines
the methods and organises the various phases of the process, starting with identifying the annual training needsof the corporate population, through a structured process
for identifying and analysing training needs. The training
scheme for individual employees is accompanied by other initiatives for accessing training such as those of an institutional nature, which meet compliance or legislativerequirements, delivered face-to-face or online through an
e-learning platform, ad hoc training projects dedicated to
GCF/GBU teams and course self-application. In terms ofself-development, Brembo employees can in fact also access training courses — on a remote or e-learning basis —by self-enrolment authorised by their direct manager.
Brembo defines the annual training plan based on a survey and the related analysis of the specific areas and topics for which individual organisational areas believe there
is a need to enhance and improve knowledge. The Group
continues to invest in the development of transversal skills
and organisational behaviours indicated within the Brembo Competency Model — described in detail in the “Casa

Brembo” development manual, along with Brembo’s principles and values —, as well as in strengthening role-basedskills. The global training and development offer consistsof over 130 training courses covering different topics (in addition to those in the Safety and Environment field). A constantly increasing percentage of these courses is also available in English or the language of the Country concerned.
The broader framework of People and leadership development includes the Group Talent Management and Succession Planning system. It starts with the BYR (Brembo Yearly Review), which allows evaluations of individual annual
performance to be collected. It then proceeds with the updating of the Country Talent Portfolios and the mappingof successors at country level and then the expansion of
the map of GFC and GBU talents and successors within
the Development Committees involving the GBU and GCF
Chief Officers, the Human Resources and Organisation
GCF and the Top Management. The process ends with theconsolidation of the Group Talent and Succession Portfolio
and with the definition of appropriate development actions and initiatives for the enhancement of the talents
and the mapped successors.

4.4 GROWTH AND MERITThe performance assessment for white-collar employees(BYR) represents an important element, as well as an essential tool for ensuring continual improvement, enhanceand retain talents and key skills within the company. The
BYR consists of a constant dialogue between managers
and employees, which ends with a structured discussion
and feedback during which the year’s results are analysed, the future objectives to be pursued are defined, an
improvement plan is prepared, and future growth paths
are identified.
The performance assessment for blue-collar employees
falls under the Brembo Production System and is basedon a multi-functional and multi-competency analysis of
the individual employees in relation to specific metrics
and matrices.

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The Group has also activated special processes at world level,
designed to regulate management and assessment flows, aswell as define ad hoc management tools. These processes
are included in Brembo’s Human Resources Management
Model, which is based on measures of performance, competencies, potential and motivation. The system for professional development and for recognising each person’s contribution to the company’s success is structured into threephases: the constant sharing of business expectations with
employees, defining expected performance and accurately
assessing the results achieved during the year.
In 2023, 78.3% of employees (77.7% of men and 81.1% of
women) took part in the 2022 performance assessment process, with a rate of 79.5% for managers, 89.5% for white-collar employees and 74.14% for blue-collar employees.

4.4 Growth and Merit

EMPLOYEES INVOLVED IN THE REGULAR PERFORMANCE ASSESSMENT PROCESS*OUT OF THE TOTAL OF THE CATEGORY TO WHICH THEY BELONG
Men% ON TOTAL
MEN

Women

% ON TOTAL
WOMEN

Total

%
ON TOTAL

448

79.29%

79

80.61%

527

79.49%White-collar employees

2,214

91.64%

721

83.45%

2.935

89.48%

Blue-collar employees

5,624

73.19%

1,058

79.61%

6.682

74.14%

Total

8,286

77.69%

1,858

81.10%

10.14478.30%

Managers* Data refer to the 2022 performance assessment process and refer to employees at 31 December 2022.

In addition to a preset number of common objectives assigned by the Company, several qualitative and quantitative
individual objectives may be included within the annual
incentive system reserved to specific target population (e.g.
MBO for all the eligible population). These include, for example, the implementation of specific projects and meeting
one’s own spending budget targets which measure the individual contribution to the Group’s strategic objectives.
The Plant Organisational Development Project continued aspart of efforts to standardise the organisational structure ofplants, and the related areas and roles at the global level. In
particular, following the standardisation of Italian and Polishplants, pilot competence assessment projects were launched
for the relevant white-collar employees and the managers.
The global Skill Factory development project in the ICT
field, with structured feedback to participants from HR andmanagers and with the definition of individual development plans was completed. In addition, two Development
Centre sessions were held, involving managers in a structured process of leadership profile assessment, followed by
the definition of individual development plans.
In order to promote the personal and professional development of employees, Brembo has fostered the use of internal mobility tools, so as to facilitate them in accessing
new job opportunities within the Group. The internal job
posting is a very widespread tool. Where present, it advertises worldwide and through the most appropriate company’s tools open positions currently unfilled and collects any
applications, giving interested People the possibility to apply in a proactive way. This is supplemented by other tools
including job rotation which allows employees to express
their willingness to change function/role even regardless ofthe opportunities available at a specific moment.

DIGITAL TRANSFORMATION FROM THE HR STANDPOINT:
AN ADVANCED HUMAN RESOURCE MANAGEMENT SYSTEM

As part of the Group’s Digital Transformation Programme and in particular
the Journey 10, the standardisationand digitalisation of processes relating
to the management of the Group’s human resources, which translates into
the adoption of a new Cloud Group
Human Capital Management System(Brembo HCM) global integrated system, continued. This project initially focused on white-collar employees.

As of 2024, blue-collar employees will
also be included in the system at global level.
Some of the most significant benefits
are the availability and accuracy ofdata and information on Group personnel, the standardisation and synchronisation of HR processes, the improvement in the Brembo employee
experience, and reporting.

The programme provides for the implementation of processes and guidelines and is accompanied by change
management initiatives to encourage
and support change in people and theadoption of new ways to collaborate.
In particular, 2023 saw the launch of
the BYR and the (pilot) MBO at global
level and implementation of the recruiting and competence assessment
processes.

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141

4. People

4.5 W
 ORKERS’ HEALTH
AND WELLBEING

Brembo has made the protection of Safety a distinctive
element of its own business and way of being, guaranteeing braking systems of the highest quality. This focus
on Health and Safety is not only directed to assuring safe
products, but it also applies to all People in the Group. This
commitment translates into an organised Health and Safety management, which aims on the one hand to respondpositively and concretely to the needs of all interested parties, and on the other to ensure increasingly healthy andsafe working environments both for Brembo employees
and for all those accessing the workplace for different reasons, preventing the occurrence of work-related incidents,
occupational diseases and near misses.

100%of Brembo’s plants in full operation
remained ISO 45001:2018 certified

PRINCIPLES OF THE OCCUPATIONAL HEALTH AND SAFETY POLICY• Health, individual and collective
safety are essential prerequisites:
their protection steers the company’s decision-making processes andindividual behaviour.
• Brembo pursues sustainable development through integrated planning of the development phases
and/or modification of each process
in order to minimise any significant
health and safety risk.
• Prevention of risks to workers is
implemented through appropriate
management of the processes andsubstances combined with correct
operation, maintenance and control of machinery and equipment.
• The identification, dissemination
across the Group and implementa-

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tion of best practices and/or opportunities for improvement are thecornerstone of prevention.
• Training and information are thebasic ways in which to inform workers about the principles, guidelinesof the Management System for
Workplace Health and Safety, andways in which it is implemented.
• Brembo’s propensity to reduce theresidual risks of its business is also
demonstrated by its direct communications with people and interested parties.
• Suppliers and contractors need to
be involved with the Management
System in order to reduce the risksof operations carried out at industrial plants.

• When evaluating its suppliers,
Brembo carefully considers those
who have a certified Management
System.
• Brembo believes that the consultation and participation of its workers, or their representatives, areamong the fundamental requirements for pursuing the ongoing
improvement in the Health and
Safety area.
• Each worker must take care of hisor her own health and safety andof that of the other persons in theworkplace, also in accordance withthe training received.
• Brembo encourages a widespreadculture of safety involving all stakeholders.

4.5 Workers’ Health and Wellbeing

To guarantee the highest Health and Safety standards
for its own People, Brembo has adopted an increasingly
structured approach, especially with regard to workplace,starting from the assessment of risks connected withproduction activities. To achieve this, the Group complies
with local legislative requirements in activities within its
production facilities, while promoting constant dialogue
with its employees and ensuring that access to all company facilities and outsourced processes takes place in a
fully safe manner.
Brembo’s commitment to these issues takes concrete
shape in the related Health and Safety Policy, which defines the objectives, principles and commitments that theGroup sets itself in this area. The document is signed by the
Chairman and is subject to periodic reviews.
In order to encourage a corporate culture that promotes
Health and Safety and seeks continuous improvement,
the Policy is adopted by all sites that are required to incorporate it into their own “Site Policy”, as well as adapt
the Site Policy content to the operating context basedon the main risks featured on the site. The Group Policy,
therefore, provides the overall framework within which
employee health and safety is assured, leaving the formalisation of specific and operational aspects, such as
Emergency Plans and specific risks, to site tools. The
Health and Safety Policy is thus available to all interested
parties both internal and external to the Group, throughpublication on the company intranet portal and workplace notice boards.
Updated during 2020, upon the issue of the new Management System, a System that has adopted the principles of
the ISO 45001 standard, the Health and Safety Policy is an
integral part of the broader “Organisational, Management
and Control Model”. The certification of all sites according
to this standard was confirmed for 2023 through special
maintenance audits carried out by a third party, which
revealed no significant non-conformities. The decision to
apply this management standard was not taken due tomandatory legal requirements or explicit requests fromstakeholders, but in consideration of the opportunities that
could be seized by applying the principles defined by the
management system itself. The newly-acquired sites havealso began the certification process.

The new management standard allows the company operating flows to be defined in a structured way for all aspects
related to workplace Health and Safety issues and enables
them to be refined and managed over time with increasing detail and effectiveness. In this way, the Group aims to
reduce work-related incidents, injuries and diseases, raiseawareness among people and spread the workplace safety culture within Brembo, as well as monitor performancetrends, ensure legislative compliance and, last but notleast, protect both the persons to whom legislation assigns
responsibilities and Brembo itself and its image among
stakeholders.
The Management System gives equal consideration to both
employees and other workers, such as temporary workers,
providers of labour or interns, whose work and/or workplace
are directly controlled by Brembo. In fact, the Group Guidelines and Site Procedures do not make any distinction thatrefers to the type of employment contract in place. Therefore,
in defining the Management System all the parties accessing Brembo sites on an ongoing basis have been taken into
account (such as contractors, visitors, customers). To date,
this Management System does not include the SBS Friction
and J.Juan sites since — as recently acquired sites — they
have not yet completed all the activities necessary to obtain
the ISO 45001 certification. Accordingly, considering the new
Brembo scope — also including the recently acquired plants,
94.37% of employees is covered by the System.
The model adopted for the management of workplace
Health and Safety aspects is composed of a Management
System defined by the Parent Company and a Management System which, referring to that of the Parent, is applied within each individual plant.
The Parent’s Management System is reflected in the Worker Health and Safety Management System Manual, Guidelines and Brembo Safety Document System (BSDS)64.
The facility General Manager is responsible for setting out
explicitly the principles enshrined in said documents in local procedures and identify any cases in which they do notcomply with applicable legislation and implements any
modifications. If the Manual and/or Guidelines differ fromthe law, the principle of prevalence applies, whereby themost stringent directive prevails.

64 The Brembo Safety Document System is the document which correlates the structure of the Management System Manual and the Guidelines to the ISO
45001 standard. Said document is available both at Group and plant level.

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143

4. People

The effectiveness of said approach is check at least annually both at Group and plant level. To ensure the full and effective implementation of the Policy’s provisions, the Group
voluntarily submits to regular independent third-party audits to verify that said Management System has been effectively implemented at all the different manufacturing sites.
Furthermore, at local level all manufacturing sites undergoa third-party statutory audit to verify and ensure compliance with applicable laws and regulations in every country
where the Group operates.
Verification of audit results and annual performance, activity planning and medium-/long-term goal setting inthis area are entrusted to the Industrial Committee inwhich take part, inter alia, the Executive Chairman, Chief
Executive Officer, Chief Industrial Operations Officer, Chief
Human Resources & Organisation Officer and the Safety
Committee comprising all sites and Operations. This isalso where the main safety KPIs and the findings of theanalysis of the situation conducted at the Group level arepresented, along with risk mitigation activities identified
as significant — which may compromise Brembo’s ability
to achieve the expected results, as established in the Management System — and examples of the solutions andbest practices arising from the analysis of the main events.
The Committee’s decisions are circulated to all concerned
parties, and in particular to the Plant Managers of theplants, to whom the Health & Safety area undertakes tosend the goals, targets and projects relating to the reduction of the risks identified. The Plant Manager sets goals
and plans activities at the plant level, considering all information received, the analysis of the Group’s situation andthe expectations of the various stakeholders. In particular,
he or she identifies hazards, assesses risks and plans actions to seize opportunities for improvement; determines
the applicable legal requirements (or those to which theOrganisation has subscribed); sets the goals and identifies the steps to achieve them, so as to improve the Management System constantly; and informs Group Health& Safety area of the plans and targets set and achieved.
Moreover, on a site level, in keeping with rules establishedby the Group, committees or work groups meet to discuss
aspects of health and safety. All the workers are represented in these groups.

The Group’s approach as part of the Health and Safety Policy entails analysing, on a plant level, potential sources ofrisk for its employees and putting the best solutions into
place to prevent, reduce and, where possible, eliminate
such risks: from appropriate handling of substances andprocesses to the correct operation, maintenance and control of machinery. The risk identification and assessment
process inside each site involves an inter-functional teamconsisting of the Health and Safety Officer, Occupational Physician, process supervisors and, last but not least,
the employees through interviews or specific requests for
opinions. Where necessary, the process involves externalroles that support its plants in carrying out practical surveys aimed, for example, at assessing noise or chemicalrisk level. Once identified, all the risks — both generic andspecific — are added to an assessment scale that allows
identification of the mitigation actions. The precise goalof each prevention and protection measure for employee
Health and Safety is to reduce, if not to eliminate, the existing risk.
The Group’s commitment to overseeing workplace Healthand Safety issues also reflects into a systematic approachfor monitoring trends in incidents, near misses, unsafe
acts and objective conditions65. Based on problem solving
principles, if indicators are revealed that are not in linewith the pre-set objectives or critical issues inside Brembo sites, each individual plant engages in improvement
plans and actions, setting up ad hoc working groups.
Once the efficacy of the actions adopted has been verified,these are shared within the Group to allow all the plants
to implement the same solutions promptly, if necessary.
The value added of this process lies in continual search for
improvement by involving all employees in collecting ideas and suggestions in the area of workplace Health and
Safety.
Brembo has also implemented a mechanism for the collection, analysis and dissemination of the risk reports by
the whole organisation. Reports are an essential starting
point for identifying new potential risks and thus defining
and implementing actions aimed at improving employees’ working conditions from the standpoint of safety.

65 An objective condition is a condition not caused directly by the action or inaction of one or more employees in an area. It may result in incidents or injuries
if not corrected in a timely manner. It may be caused by a defective design, incorrect fabrication or construction or inadequate maintenance procedures
and resultant deterioration. Objective conditions differ from unsafe acts because they are beyond the direct control of operators in the area in which thecondition is observed.

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4.5 Workers’ Health and Wellbeing

Each year, the Group defines quantitative targets relating to
the incident rate to be achieved annually. Specific objectives
are then defined for each site, based on the previous year’s
performance and the results of the assessments and periodic
audits. In 2023, Brembo reported for employees an incident

rate of 0.55 (excluding commuting incidents), the lowest figure ever reported. The main types of accidents are connectedto the use of machinery, transport of materials and productmanual lifting, in other words connected with the work environment and the operations carried out therein.

2021

Workplace incidents
by gender (%) (employees)

2022

2023

MEN

WOMEN

MEN

WOMEN

MEN

WOMEN

85%

15%

91%

9%

86%

14%

INCIDENT RATES OF EMPLOYEES*
2021

2022

2023

MEN

WOMEN

TOTAL

MEN

WOMEN

TOTAL

MEN

WOMEN

TOTAL

Incident Rate
(No. of work-related injuries /No. of hours worked)
x 200,000

0.73

0.61

0.71

0.73

0.32

0.66

0.58

0.42

0.55

Incident Ratewith high consequences**(No. of high-consequencework-related injuries /No. of hours worked)
x 200,000

0.01

0.00

0.01

0.04

0.00

0.03

0.01

0.00

0.01

* T
 he calculation of reported incident rates takes into account only injuries occurred to employees that have taken place at the workplace. The “Appendix”
section provides further details in order to meet the GRI 403 Standards (2018) disclosure requirements.
** High consequences” mean injuries that may lead to the permanent loss of body function or injuries that record an absence of more than 180 days.

Brembo pays constant attention to the health and safety of
all those people who every day operate in the Group plants
or office facilities. In 2023, the incident rate of workers who
are not employees decreased to reach 0.67, while the inci-

dent rate with high consequences of workers who are not
employees amounted to 0, decreasing compared to theprevious year when it was 0.09.

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145

4. People

INCIDENT RATES OF WORKERS, WHO ARE NOT EMPLOYEES66 OPERATING AT THE GROUP’S SITES
2021

Incident Rate **(No. of work-related injuries /No. of hours worked) x 200,000
Incident Rate with high consequences*(No. of high-consequence work-related injuries /No. of hours worked) x 200,000

2022

2023

MEN

WOMEN

TOTAL

MEN

WOMEN

TOTAL

MEN

WOMEN

TOTAL

0.99

0.56

0.90

1.06

1.15

1.08

0.81

0.20

0.67

0

0

0

0

0.38

0.09

0

0

0

*	The calculation of reported incident rates takes into account only injuries occurred to workers that are not employees, but whose work and/or
workplace is under the control of the organisation. The “Appendix” section provides further details in order to meet the GRI 403 Standards (2018)
disclosure requirements.
**

High consequences” mean injuries that may lead to the permanent loss of body function or injuries that record an absence of more than 180 days.

With regard to contractors, in 2023 Brembo reported 6
work-related incidents, of which five in Italy and one inChina. None of them was with high consequences.
Lastly, no fatalities relating to employees, temporary

workers and contractors were reported during the year.
In 2023, 22 cases of employee occupational diseases werereported, of which 18 in Italy, 3 in the Czech Republic andone in Poland.

2021

No. of recordable occupational diseases(employees)

2022

2023

MEN

WOMEN

TOTAL

MEN

WOMEN

TOTAL

MEN

WOMEN

TOTAL

5

10

15

10

0

10

16

6

22

TRAINING ON WORKPLACE HEALTH AND SAFETY

Brembo is firmly of the belief that a safe work environment goes hand-in-hand with a continuous Health and
Safety training. Because of this, the Group has defined
general workplace Health and Safety courses in compliance with current legislation. The courses are provided
to all company personnel, with a particular focus on new
recruits.
Brembo is committed to keeping annually all personnel
responsible for managing workplace Health and Safety

66 The calculation of incident rates does not take into account contractors.

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Annual Sustainability Report 2023

issues up to date with professional training, as well as
adapting training content to the different functions andspecialisations in accordance with the risk assessments
and training needs. In order to structure useful and effective courses, training planning starts from the tangible
needs of the different company functions and the alreadyacquired skills (such as the level of knowledge of a foreign
language), identifying the needs that may arise as a resultof organisational changes, process changes or internal
improvement programmes.

4.5 Workers’ Health and Wellbeing

In most cases, the teachers are external and are chosen after thorough assessment of their qualifications, competence
and experience. In some geographical areas, such as Mexico
and China, a further specific certification is requested.
With the aim of keeping its employees updated on
Health and Safety matters and promoting the observance of safe behaviours, the direct training activity was
also accompanied by periodic awareness-raising initiatives, such as the “10 Life Saving Behaviours”, which aredesigned to spread an understanding and application

No alcohol,
no drugsof the “10 Life-Saving Behaviours” with which personnel
must comply in the workplace.

Over

41,377 hoursof training regarding Health and Safety
provided in 2023

Obtain
the necessary
authorisations

Be responsible
for yourself andyour colleagues

Always wear
appropriate PPE

Always pay
attention to thesurrounding
environment

Do not bypass
the safety systems

Adopt theLOTO procedure

Use machinery andequipment correctly

Protect yourself whenworking at height,
take precautions toprevent falling

Report any
near misses

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147

4. People

In a context aimed at a broader, inclusive and positive
promotion of workplace health, these activities are in addition to awareness-raising and prevention initiatives regarding specific illnesses that were carried out in various
sites, such as: the Workplace Health Promotion (WHP) in
Italy and the EMPLOYEES’ healthy lifestyle Global Healthy
Days campaigns in India; the Breast cancer awareness,
Men health prevention, Altruistic Blood Donation, Onsite vaccination campaigns in Mexico, the Breast Cancer
Awareness Month and Tobacco Cessation Program in theUSA, the Pink October and Blue November campaigns
and the Jornada saludable initiative in Brazil, consistingin providing all employees with a healthy breakfast. Similar prevention initiatives were introduced in Poland, alongwith the Ergonomics at the Office and Workplace campaigns, accompanied by physical therapy sessions. In addition to these initiatives, the Brembo To You programme
offered sessions dedicated to raising awareness among all
employees of individual health and wellbeing issues andencouraging collective discussion.
In addition, Brembo supports sports projects aimed atpromoting the positive value of physical activity, suchas Running, Volleyball and Soccer Teams in Poland andBrembo Strong in the USA, a wellness and corporate welfare programme developed with the aim of encouraging
healthy behaviours and discounts on medical insurance
premiums.

THE PINK OCTOBER AND BLUE NOVEMBER CAMPAIGNS IN BRAZIL

During October and November, eachyear Brembo do Brasil organises twoawareness campaigns open to everyone working at its plant, to draw theirattention to important health andprevention issues: Pink October &Blue November.
October is the month dedicated tobreast and womb cancer: all thewomen are invited to attend an event
where these issues are discussed, andthe importance of prevention and early diagnosis is emphasised. November
is the month for raising awarenessabout prostate cancer, involving all
the male workers.
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Annual Sustainability Report 2023

chance to undergo breast examinations, while men are able to do a PSA
test at a medical clinic partnering
Brembo do Brasil.
The aim of the campaigns is to promote medical care and raise awareness among employees and their families about prevention, diagnosis andtreatment, to increase the treatment
possibilities and reduce the mortality
rate caused by these diseases.
These initiatives represent tangible
steps towards reaching the 17 Sustainable Development Goals set out
in the UN 2030 Agenda, particularly SDG 3, targeted at the health andwellbeing of people around the world.

4.5 Workers’ Health and Wellbeing

OPEN DIALOGUE AND DISCUSSION FOR CONTINUAL IMPROVEMENT

Brembo pursues the goal of guaranteeing Health and Safety at work, making consultation, involvement and empowerment of workers one of the cornerstones of its actions. In
fact, one of the most significant innovations in the updateof the Management System during 2020 was the definitionof management methods, common to the whole Group,
allowing more active employee participation and consultation on H&S issues.

Local Health & Safety Committees
At all Group sites, the workers and management meet atleast on a half-year basis, to discuss and take decisions on
open Health and Safety issues and identify specific solutions. In particular, they include the Plant Manager, H&S,
the Workers’ Representative and the Physician, along withthe heads of plant functions. The subjects dealt with are
circulated to workers through their representatives or, subordinately, in the minutes of the meetings.
The issues handled include topics such as risk assessment, work-related incident and occupational illness
performance, training and information programmes, opportunities for improvement identified, the nature of incidents, near-misses and non-conformities and the resultsof measures taken to mitigate them, together with any
best practices.

Prevention through information sharing
In order to encourage information sharing and discussion about problems, an IT portal facilitates the prompt
communication and analysis of information regarding
incidents, injuries or near misses at the various Groupsites, improving management effectiveness and above all
efficiency in preventing incidents. In fact, the platform facilitates the analysis of each event and the identificationof the root causes. It also makes it possible to structure
the information in a single archive accessible to all Groupsites. In this way the plants not involved in the incident
are able to rapidly assess whether what happened could
repeat itself at their facility and to implement appropriate
preventive actions.

Promoting workers’ wellbeing
Brembo’s commitment to promoting the health and wellbeing of its workers has translated in 2023 as well, for thetwelfth year in a row, into pursuing the achievement of the
WHP “Workplace Health Promotion” recognition. In Italy
Brembo took part in the WHP project, for which the Grouphas been one of the main advocates since 2011.
This initiative, in partnership with the local health authorities and Bergamo’s entrepreneurial association, is
designed to promote healthier lifestyles and eating habits among workers of the companies involved. In addition,
based on World Health Organisation guidance, Brembo isfostering health promotion initiatives for risks not directly related to the working environment. In fact, the Group’s
employees have been involved in information campaigns
to spread healthy lifestyles, thanks to courses on proper nutrition, programmes to combat addiction and the Brembo
wellness program.

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4. People

METHODS AND TOOLS SUPPORTING WORKERS’ HEALTH AND SAFETY

Communication campaign
People engagement underpins the promotion of the safety
culture, which follows on from the “I am safety” campaign
launched in 2019 and relaunched in 2022. In 2023, Brembo
intensified efforts to raise awareness on this subject, during a second phase of the campaign, through “bottoms-up”
involvement of people at Italian sites, designed to gather
contributions and opinions to best identify the content on
which the focus the campaign moving forward.

Brembo World Class Manufacturing (WCM)
The Brembo World Class Manufacturing programme,
launched in 2022 and extended in 2023, is underway at all
Brembo sites. Following the definition of reference Teamsfor the Safety Pillar and specific training courses, projects
were launched to improve working conditions and prevent
risks at the Group’s sites.
Compared to the previous year, personnel engagement increased, due to visual aids and signs, as did requests for
direct participation in reporting and analysing near misses
and unsafe actions.

Ergonomics
The aim of the project is to anticipate the ergonomic analyses of production processes in their design phase so as
to facilitate line optimisation before their construction
and also prevent the risks associated with the manual
handling of loads and inappropriate postures. Following
the activities aimed at improving ergonomics carried out
in 2022 and the launch of a study project for the use of
exoskeletons, designed to provide adequate ergonomic
support at the most critical workstations, 2023 witnessed
the start of the experimental phase involving the use of
exoskeletons within the factories.

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Safe behaviour project
60% of incidents are generally due to unsafe behaviour, apercentage that goes as high as 80% in Labour intensive
areas (assembly and mechanical processing). The Safe
Behaviour Project aims to identify and correct specific behaviours that have caused incidents or near misses that
could be repeated in the future. The project’s strength lies
with the involvement of site prevention personnel, teamleaders, department heads and shift managers both as
observers of the behaviours themselves and as “trainers”
of the workers for the correct actions to follow. In 2023,
this project was further extended to several sites, thanks
to training and awareness-raising activities devoted to thesecurity personnel.
In particular, in 2023 the Layered Process Audit project was
integrated in the Brembo WCM methodology and disseminated at all the sites in which the programme was developed. Following a safety audit, this project enables theidentification and subsequent analysis of the unsafe conditions and actions found on individual workstations in orderto implement the appropriate countermeasures.

‘Safety Walks’Each plant, depending on specific local circumstances, provides for employee consultation and participation activities.
One example, in Italy, features the ‘Safety Walks’, in which
the Employer and Worker Representatives jointly carry out
a monthly audit in the sections regarding the operational aspects of Health and Safety.
Dedicated company notice boards, projections on screens inside the factories, booklets and information leaflets, as wellas the company’s Intranet portal and the internal quarterly
magazine MyB supplement the range of information tools
available to employees.

4.5 Workers’ Health and Wellbeing

HEALTH AND SAFETY IN BUSINESS RELATIONSHIPS

Brembo aims to promote Health and Safety issues
throughout its supply chain, in order to ensure suitable
and healthy working environments for all people who havedealings with Brembo. In 2023 as well, the outsourced supplier management process for Health and Safety aspects
was maintained.

OUTSOURCED SUPPLIES

Aware that it does not have direct control over suppliers and even less over
the work environments they use, theGroup has focused its attention on
structured processes with the aim ofraising awareness among supplierson Health and Safety issues, as well as
accompanying and supporting themin the effective management of these
aspects. In this way, the Group aims toprevent, and when this is not possible,
mitigate, its impacts caused by outsourced activities.
Specifically, the management processapplicable to workplace Health and

Safety issues is structured into three
aspects:• communication and sharing of occupational Health and Safety standards that Brembo intends to apply
to its outsourced suppliers;• assessment of the ability of suppliers to apply and comply with thenecessary requisites;• sharing with suppliers the path designed to continuously improve performance
In line with the objective of ensuringthat the Health and Safety principles
are respected throughout the supply
chain, Brembo uses third parties tocarry out audits of suppliers in orderto verify compliance with the required standards, while new suppliers
are subject to a preliminary assessment to verify that they meet theminimum requirements.
If the checks highlight critical situations, Brembo asks the supplier totake the necessary actions to bring
the risk under control and monitors
the related implementation plan.

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151

THE SUPPLY CHAIN

78.2%

SUPPLIERS OF DIRECT
MATERIALS THATSINCE 2015 HAVEBEEN INVOLVEDIN SOCIAL AND
ENVIRONMENTAL
AUDITS(IN TERMS OF VALUE OF SUPPLIES)CONTINUING TO
GROW TOGETHER
Collaborating with the supply chain
and sharing the commitment to achieving sustainability goals
is the challenge needed to meet the complex requirementsof the automotive market’s transition.

90.6%
LOCAL SUPPLIES:
SUPPLY FROM SUPPLIERS
LOCATED IN THE SAMEGEOGRAPHICAL AREAS
WHERE THE GROUPOPERATES** This includes the costs of purchasing goods and services directly involved in the manufacturing of finished products, namely purchases of: raw
materials, components, semi-finished and finished products, ancillary materials and services (mostly transport, utilities, packaging and MRO).
The scope of analysis was expanded to also include the provision of services not closely associated with production, such as the costs of ICT and
telephony, cleaning, security and canteen services. Tax and legal advice, insurance, sponsorships, business travel, recruitment and training activities,building leases and industrial assets are excluded.

5. The Supply Chain

5. T
 HE SUPPLY
CHAIN
90.6%

67

Local supplies: supply
from suppliers locatedin the same geographical areas
where the Group operates

78.2%

Suppliers of direct materials
that since 2015 have been involved
in social and environmental audits(in terms of value of supplies)

5.1 ANCILLARY COMPANIESAND SUPPLIER NETWORK67
The Group relies on the contribution of more than 6,900
businesses located in more than 15 countries throughout the world to carry out its own activities. These provide essential goods and services for Brembo’s industrial
processes.
For its production, Brembo needs to access high quality
raw materials with sustainable costs, whilst being mindfulof the environment. The main raw materials that the Groupprocures to make its products are ferrous and aluminium
scrap, which are used in foundries and then to manufacture discs and calipers. Brake discs are made from cast iron,mainly derived from recycled material originating fromthe ferrous scrap recovery chain or mechanical processing
scrap. Brembo currently favours primary aluminium in producing its calipers. In 2023, at some of its plants, the Grouphas introduced the use of 5% recycled aluminium derivingfrom the scrapping of alloy rims. In addition, as part of constant efforts to reduce greenhouse gas emissions, Brembo
is experimenting with the use of secondary aluminium forcasting calipers, with the goal of introducing it into production as early as next year. In addition to raw materials,
Brembo also procures a series of finished and semi-finishedcomponents, such as seals, pads, small parts, chemical
products and packaging components for products for salesuch as cardboard and plastic packing. In any case, 87% of
total materials entering Brembo’s plants and used to manufacture the main organisation’s products and services isrecycled and consists of ferrous and cast iron scrap.
During 2023, the total number of raw materials, components, materials and auxiliary production services processed and integrated in Brembo products generated a purchasing value of more than €2,442 million, in addition toabout €317 million for machinery and industrial plant.
The geopolitical environment and the different market
conditions of recent years continued to increase the strategic importance of the supply of electricity, natural gas
and raw materials such as ferrous scrap, aluminium, castiron goods, binders and refining agents directly used in theGroup’s foundries, which in 2023 rose to an overall purchase value of nearly €785 million.
Equally significant in 2023, worth a total of more than €935
million, were components and outsourced processing.

67 This includes the costs of purchasing goods and services directly involved in the manufacturing of finished products, namely purchases of: raw materials,
components, semi-finished and finished products, ancillary materials and services (mostly transport, utilities, packaging and MRO). The scope of analysis
was expanded to also include the provision of services not closely associated with production, such as the costs of ICT and telephony, cleaning, security andcanteen services. Tax and legal advice, insurance, sponsorships, business travel, recruitment and training activities, building leases and industrial assets are
excluded.

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5.1 Ancillary Companies and Supplier Network

VALUE OF SUPPLIES68 BY CATEGORY (€)
2021

2022

2023

Raw materials and cast iron goods

569,247,032

828,883,991

784,757,701

Components and outsourced processing

754,713,751

927,064,442

935,242,159

Ancillary products and services

479,527,436

637,225,182

722,488,086

1,803,488,219

2,393,173,615

2,442,487,946

173,589,519

241,577,366

317,136,247

1,977,077,738

2,634,750,981

2,759,624,193

2021

2022

2023

1,013,421,591

1,270,635,517

1,361,206,670

North America

316,636,567

469,729,190

461,460,717

South America

25,848,759

584,428,614

61,940,494

Asia

444,685,424

54,420,444

541,755,432

Other*

2,895,877

13,959,850

16,124,633

1,803,488,218

2,393,173,615

2,442,487,946

Total
Industrial assets
Total

VALUE OF SUPPLIES BY GEOGRAPHICAL AREA (€)

EuropeTotal* The item “Other” includes for 93% United Arab Emirates and for the remaining part Russia, Australia and Libya.

PERCENTAGE OF LOCAL SUPPLIES (€)
2021

2022

2023

Europe

87%

86%

90%

North America

83%

85%

87%

South America

99%

100%

99%

Asia

96%

96%

97%

68 The scope of analysis of the value of supplies includes the costs of purchasing goods and services directly involved in the manufacturing of finished products,
namely purchases of: raw materials, components, semi-finished and finished products, ancillary materials and services (mostly transport, utilities, packagingand MRO). It also includes the provision of services not closely associated with production, such as the costs of ICT and telephony, cleaning, security andcanteen services. Tax and legal advice, insurance, sponsorships, business travel, recruitment and training activities, building leases and balance sheet allocations/provisions are excluded. The “value of supplies” is considered in euro by converting each transaction at the exchange rate of the transaction date. The
scope of analysis of the value of supplies includes all Brembo companies except for: Brembo Japan Co. Ltd.; Brembo Deutschland GmbH; Brembo Russia Llc;
Brembo Inspiration Lab Corp.; Brembo Reinsurance Ag; Brembo Poland Manufacturing Sp Zoo; Brembo Poland Heatech Sp Zoo and Brembo Thailand Ltd.

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155

5. The Supply Chain

5.2 RESPONSIBLE SUPPLY CHAIN

For Brembo, supply chain management is a priority andis essential to ensuring responsible supplies, with a focus
on environmental protection and the rights of workers
and local communities. For this reason, the Group asks
for its model of conduct to be shared and applied also by
its supply chain. These principles and values are at thebasis of the supplier selection and were formally definedwithin the Sustainable Procurement Policy. Through thisdocument, that as of 2022 integrates and supersedes the
Supplier Code of Conduct and the Procurement Policy,
Brembo brings together the new regulations, but, above
all, it intends to accompany its suppliers towards an increasingly sustainable business.
This Policy is broader in scope: it contains the codes of conduct that suppliers are required to apply and urges responsible, sustainable conduct, far beyond mere compliance withrules and codes. This policy was distributed to the main
global Brembo suppliers, which are required to sign it andabide by it. It includes verification and audit programmes,
monitoring, training sessions and corrective measures tosupport suppliers in a collaborative manner.
Over the years, the Group has thus established a structured
supplier management process that seeks to promote thedevelopment of stable relations with its partners, as well as
ensuring continuous innovation and improved quality andsustainability throughout the industry.

Capacity
Building

Sharing
expectations

Capacity
Building

Condivisionedelle aspettative

Assessment

Valutazione
This process is structured into three main phases:
1. 	Clear communication of the standards that Brembo expects from its business partners in terms of product andservice quality, respect for human rights and employee
protection and, more generally, attention to ESG issues.
2. 	Assessment of suppliers’ capacity to meet ESG-related
technical specifications and requirements both during
the qualification phase and during the business relationship and monitoring of the risk relating to supply.
3. 	Providing suppliers with support to continually improvetheir own performance and strengthen their ability toinnovate.

CLEAR COMMUNICATION OF WHAT THE GROUP EXPECTS FROM SUPPLIERS

In light of the complexity of the production and technological sector in which Brembo operates, it asks the Group
main suppliers to adopt the Sustainable Procurement Policy, which summarises the guidelines set out in the Group’s
sustainability policy, the rules and principles that Brembo’s
suppliers are required to uphold.

••In particular, Brembo asks:
•

•

156

to base their conduct on the Universal Declaration of
Human Rights, the ILO’s Tripartite Declaration on the
Principles Concerning Multinational Enterprises andSocial Policy, as well as the OECD Guidelines for Multinational Enterprises;
to implement a quality management system certified
by independent accredited bodies, promoting where

Annual Sustainability Report 2023•

possible, the use of Automotive IATF standard 16949
among the suppliers of direct materials;
to develop and maintain an ISO 14001-compliant environmental management system, preferably obtaining
third-party certification;to actively take part in the fight against climate change
through collaboration and transparency in data sharing
and the concrete commitment to reducing climate-altering gases;
to implement administrative, physical and technicalcontrols on information security, in particular the ISO/IEC 27001:2013 standards and other applicable standards in this field.

The Sustainable Procurement Policy has become a key
document in relations with suppliers, and even an inte-5.2 Responsible Supply Chaingral part of the new General Terms and Conditions of Purchase Direct Materials and Services (GTCoP), which were
updated and released in a new revision in 2023.

The Sustainable Procurement Policy has already beensigned by over 800 of the total active suppliers.

SELECTION, ASSESSMENT AND MONITORING

New supplier selection and assessment
In 2023, 6 new suppliers were selected and activated taking account of environmental and social criteria, throughthe completion of the pre-assessment questionnaire. They
account for 5.36% of the candidates who qualified as new
Brembo suppliers in 2023. In addition to the new suppliers falling within the above characteristics, Brembo also
subjects to a sustainability assessment all suppliers that
become relevant during the year. “Relevant suppliers” arethose that belong to certain product categories or that conduct business with Brembo that exceeds specific thresholds for each Group company.
Brembo has defined a structured process for the assessment and approval of new suppliers.
The first phase of the process involves inviting suppliers toregister with Brembo’s Supplier Portal and asking them tocomplete a pre-assessment questionnaire (the questionnaire is also available online on the website https://www.
brembo.com/en/company/suppliers/criteria-for-selection).
This first analysis phase enables Brembo not to establish
commercial relationships with suppliers who do not comply
with the minimum requirements and allows it to identify
in advance any critical issues regarding new potential suppliers and to implement corrective actions accordingly. The
questionnaires are analysed by the Purchasing, Administration & Finance, Quality & Corporate Social Responsibility
Global Central Functions (GCFs) with the aim of assessing
the operating, financial and sustainability risk profiles.
Once the pre-assessment phase is concluded positively, allpotential suppliers of direct materials receive onsite visitsfrom the Quality Global Central Function to check that thequality and process requirements are met effectively.
Once the approval process has been completed, the supplier becomes part of the supplier base to which Brembo canaward orders. The assignment of a specific supply takes
place by benchmarking the various offers received on thebasis of the following assessment criteria:

A. Compliance with technical specifications
B. Technological and innovation capabilities
C. Quality and service
D. Economic competitivenessAlongside the existing ESG governance already in place, in
2023 more than 350 direct and indirect suppliers were invited to register on a digital platform managed by an external
provider to complete an ESG assessment questionnaire. This
questionnaire is based on the SAQ 5.0 model defined as partof the Drive Sustainability initiative promoted by the major
global players in the automotive industry and allows Brembo
to adhere to the sustainability guidelines of the reference supply chain of which it is part, while also promptly complying
with emerging regulations and with the most consolidated international standards regarding sustainability due diligence.
In the future, this activity will allow Brembo to extend theprocess to all new potential suppliers of relevant categories
and to monitor suppliers’ performances over time.

Monitoring and risk management
In pursuit of a virtuous process of continuous improvementin product quality and risk management, Brembo regularly
monitors indicators relating to supply quality and cost, assessing the risks inherent in the supply chain, such as theincrease of supplier’s dependency on Brembo and Brembo’s dependency on the supplier, and financial solidity,
thus highlighting any critical situations.
Moreover, where a situation considered at risk were to
threaten business continuity, Brembo has a plan in place
to set up a Crisis Committee composed of an inter-functional team to take the measures needed to minimise theimpact. In 2023, 20 risk events were monitored relating todifferent areas.
In addition, in consultation with experts, Brembo has conducted for years third-party ESG audits of suppliers withthe specific goal of assessing compliance with the sustainability standards mandated by the Group.

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157

5. The Supply Chain

The Procedure for Managing CSR Audits, which has been
operating as of 2018, defines the procedures for selecting
suppliers involved in audits, the processes for managing
third party-audits, related follow ups and any corrective
actions. The parameters for selecting suppliers involved in
CSR audits are: the country of origin of the supplies, theturnover with the Brembo Group, the type of production
process, as well as other ESG indicators, if any.
The objective of the third-party audits is to identify criticalissues affecting areas such as: working conditions, related
remuneration and working hours, health, safety and theenvironment.

in 2023. Of these, four were identified as having significant
adverse environmental and social impacts, both potential
and actual.
Brembo did not suspend collaboration with the suppliers
identified. However, in keeping with its aim of accompanying its suppliers towards an increasingly sustainable approach to business, environmental improvement actions
were agreed with the suppliers in question.

The Supplier is required, for each non-conformity reported, to develop remedial action plans, which are then monitored by Brembo using the same third-party assessor.
To date, Brembo has involved 140 suppliers in sustainability-related audits certified by third-party bodies, of which 23

Periodically, the Purchasing GCF gives an update in the
CSR Meeting of work underway relating to the supply chain
with regard to the assessment activities concerning suppliers, decarbonisation (Net Zero Supply Program) and sustainability in general.

The percentage of the turnover monitored further increased by 7.9%, reaching 78.2% of the purchase costs overall for 2023 for the main direct material suppliers.

ENGAGEMENT AND AWARENESS RAISING
In the area of supply chain engagement and transparency, the main initiatives conducted in 2023 were:Supplier Engagement Survey “Materiality Matrix”:
fourth edition, designed specifically to ensure direct support during the assessment process. The survey involved
20 relevant suppliers, with a 92% response rate.
Conflict Minerals and Extended Minerals Engagement
Survey: conducted on a panel of over 220 relevant suppliers, since the Conflict Minerals Survey is part of the broader SAQ 5.0 sustainability questionnaire. In 2023 as well,
suppliers belonging to the Friction Materials, Raw Materials and Mechatronics product categories were involvedin the Conflict Minerals Survey as these components arepotentially at risk of using these materials.
Net Zero Supply Chain Programme: from the standpoint of environmental sustainability, 2023 was a year
characterised by the launch of the Net Zero programme
for the supply base. The programme provides for the involvement of suppliers in Brembo’s decarbonisation journey. Suppliers thus play a key role in this process, giventhat a large part of its GHG emissions is tied to its supply
chain, and suppliers’ cooperation is essential to achieving
medium- and long-term goals.

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The Net Zero Supply Chain Program initiative waslaunched in October 2023 through a workshop involving
approximately 290 suppliers identified as “carbon-relevant”.
The initiative met with considerable participation amongsuppliers, who were then called on to provide Brembo withprimary carbon emissions data in the form of a questionnaire. The collection and processing of the data received
were concluded at the end of 2023. More complete and precise reporting of emissions relating to the supply chain will
therefore be possible in 2024.
Brembo also organised an internal training session for over
200 employees from the Purchasing GCF and other areas
concerned with the decarbonisation issue (such as the CSR
and Industrial Operations GCF – Environment & Energyarea). The goal is to obtain widespread competency within
the organisation with regard to the main environmental
sustainability issues, and in particular decarbonisation, ensuring familiarity with the concept of Scope 3, the related
calculation methods and the decarbonisation targets.
Moreover, the Purchasing GCF, together with the CSR GCF,
manages an area dedicated to sustainability available on
the home page of the Brembo Supplier Portal to encourage effective communication, share best practices and de-5.2 Responsible Supply Chainvelop greater sensitivity to sustainability matters throughdetailed thematic reports, such as sharing a brochure dedicated to Conflict Minerals, Cobalt and Mica.

launch of the new NQC platform was accompanied, in thefirst half of the year, by training sessions on the use of thistool and the management of NQC questionnaires.

Training for the Purchasing GCF personnel: in order tostrengthen the level of attention paid to sustainability issues in the procurement area, an ad-hoc training course
has been created in which all the Purchasing GCF personnel was invited to participate. Training was particularly
intense in 2023. From the standpoint of sustainability, theThe common goal of sustainability and decarbonisation
training sessions was to increase the sensitivity of Purchasing GCF personnel to ESG and environmental topics,
so that these matters can increasingly be integral aspectsof the commercial relationship and consequent selectionof suppliers.

DEVELOPMENT AND CAPACITY BUILDING
Brembo promotes the continuous improvement of its suppliers’ performance and their involvement in product innovation processes, with a view to strategic partnerships.
In order to ensure the maximum safety and quality of its
products, Brembo is committed to involving suppliers fromthe early stages of the development of a project, adopting a
preventive and proactive approach, which allows any criticalissues identified to be anticipated and resolved.
The Group also promotes opportunities for supplier development, through collaborative initiatives that encourage direct
discussion and the sharing of best practices.

Examples include the projects coordinated by the Brembo
Supplier Quality area, which provide for the involvement ofsome suppliers in tutoring activities in order to improve thequality performance. Supplier support activities continued
in 2023 as well in the form of improvement plans and guided growth plans, in some cases with the involvement of specific external process expertise.
These projects aim to support the development of Quality
competencies in managing production processes, by analysing the processes themselves, sharing experiences andapproaches with the aim of identifying the improvement
solutions to be implemented.

COMBATING THE USE OF CONFLICT MINERALS
TantalumTa
180.9573

TungstenW
183.84

74

Gold

Au
196.97

79Tin

Sn
118.71

50“Conflict Minerals” are metals such as gold, coltan, cassiterite, wolframite and their derivatives such as tantalum,
tin and tungsten coming from Conflict-Affected and HighRisk Areas (CAHRAs). These minerals are subject to international regulations, including section 1502 of the DoddFrank Act, a 2010 U.S. federal law and EU Regulation No
2017/821 which discourages their use because their trading could fund conflicts in risk areas, where there are reports of serious violations of human rights.
Promoting the full protection of human rights in its own
supply chain as set out in the Group’s Code of Ethics, Codeof Basic Working Conditions and Sustainable Procurement
Policy, Brembo does not directly purchase minerals fromconflict zones and requires its suppliers and commercial
partners to declare the presence and provenance of conflict minerals for Brembo Group supplies so that a checkcan be made that they do not originate in countries at risk.
To this end, Brembo investigates its supply chain, in compliance with the provisions of the Organisation for Economic Co-operation and Development (OECD), which
specify the due diligence activities required.
As of 2021, the Brembo Group decided to launch an investigation also on the origin of cobalt, another high-riskmaterial that comes from conflict zones. In 2023, dataon conflict minerals and extended minerals (Cobalt andMica) began to be collected through a specific section of
the SAQ 5.0 sustainability questionnaire.

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159

SYNERGIES AND INNOVATION

3,902
PATENTS, UTILITY MODELS AND DESIGNSTHE DRIVE
FOR INNOVATION
Innovation as a strategic lever for maintaining global technological leadershipin the automotive world.
An attitude confirmed by the many patents filed
and the continuous exploration of artificial intelligence and its applications,combining design and excellence.
* Full Time Equivalent – FTE represents the workforce calculated based on the hours actually worked and/or paid by the company in which they are
employed.

PEOPLE EMPLOYEDIN R&D ACTIVITIES

100%

1,555

FTE*

PLANTS WITH
IATF 16949
QUALITYCERTIFICATION**** The Zaragoza site is ISO 9001 certified since the IATF scheme does not apply to aftermarket sites. For the plants of J.Juan (Myasl and Jiaxing), whichwere ISO 9001-certified upon their acquisition (occurred in the fiscal year 2023), activities are underway to integrate them into the Brembo Quality
Management System. This will lead to the IATF 16949 certification by Q1 2024.

6. Synergies and Innovation

6. SYNERGIESAND INNOVATION
3,902

1,555 FTEPatents, utility models
and designs

People employed
in R&D activities

69

100%

70

Plants with
IATF 16949
quality certification

6.1 DESIGNING INNOVATION6970
Companies are increasingly called upon to respond comprehensively to the challenges of climate change and air
pollution, especially in a complex sector like the automotive sector. Research and Development thus focuses on
product solutions that, from the design stage, take into
account the requirements of a market geared towards
electrification and automation, as well as the need for sustainability throughout the product life cycle.
This commitment is reiterated by the adoption of a circularity-oriented business model, which may generate positive
impacts in terms of reducing the environmental footprint(such as greenhouse gas emissions), both downstream andupstream the value chain, associated with the reduction of
the use/purchase of virgin materials, while also promoting
the design of products made with greater durability andrecyclability.
Aware of the influence that environmental impact has onpurchasing decisions in the automotive sector, Brembo iscommitted to developing innovative products with an environmentally sustainable, circular design. In this regard, in
2023 the Group worked on creating indicators relating to
product eco-design, so as to be able to include sustainability criteria from the design phases.
The Company aims to reduce environmental impact along
the entire value chain, promoting sustainable mobility andexperimenting with revolutionary solutions to improve thesustainability and comfort of braking system components.
Brembo is also oriented towards a design that harmonises
functionality, comfort, durability and aesthetics.
Therefore, the aim of the Group’s Research and Development work is to:
•

•

•

•

increase braking system performance while ensuring
maximum reliability and improving comfort throughsolutions that can reduce braking action noise, vibrations and harshness;prolong the life of Brembo’s products, while studying
and applying new product design rules and minimisingdisc and pad wear, in the framework of eco-design andcircular economy;
reduce the environmental impact resulting from theuse of vehicles in terms of greenhouse gas and particulate
emissions into the air, through the reduction of the weightof its products and the control of the dispersion of braking-related dust, but also an increase of the share of recycled raw materials thus contributing to combating theconsumption of virgin materials and the climate change;
implement the LCA (Life Cycle Assessment) assessment for all new products, using this tool as a binding
step towards the approval of a product, similarly to cost
evaluation and technical feasibility;

69 Full Time Equivalent – FTE represents the workforce calculated based on the hours actually worked and/or paid by the company in which they are employed.
70 The Zaragoza site is ISO 9001 certified since the IATF scheme does not apply to aftermarket sites. For the plants of J.Juan (Myasl and Jiaxing), whichwere ISO 9001-certified upon their acquisition (occurred in the fiscal year 2023), activities are underway to integrate them into the Brembo Quality Management System. This will lead to the IATF 16949 certification by Q1 2024.

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6.1 Designing Innovation

reduce the final weight of vehicles using increasingly
lighter alloys to obtain lightweight products;
promote functional design that enhances innovation,interprets trends and makes objects iconic.

gauged by the number of patents filed by the Group overtime. 3,902 patents, utility models and designs divided
into 650 still valid families have already been registered in
the world in over sixty years since its foundation.

The operating model, shared with the Environment andEnergy area to reduce the environmental impact of Brembo’s products throughout the life cycle, is now divided into
the following action areas:

During 2023, the Group filed several patent applications forautomation methods thanks to the research, development
and testing of systems based on artificial intelligence,
through the study of computer vision and deep learningtechniques so as to fully meet the sector’s needs and win
new market segments.

•
•

•
•

•
•
•

understanding of the impact throughout the production chain;
integration of the impacts emerged as part of the LCA
studies on the new products designed during the Research and Development phase;definition of the project criteria (Process and Product);
involvement of the supply chain;energy efficiency and transition to renewable energy
sources through contractual forms of Power Purchasing
Agreements and an increase in the capacity to self-produce electricity.

3,902

Patents, utility models and designs

Brembo’s capacity to innovate and exploit its own expertise as a strategic lever for maintaining its technologicaland commercial leadership at global level can also be

In 2023, 68 patents and 7 design models were filed, for a
total of 75, in addition to 65 filed the previous year and 50
in 2021. In 2023, Brembo also registered 9 new trademarks,
bringing the total registered since its foundation to 388,
divided into 82 families.
Continuous innovation is the stylistic approach taken by
Brembo to 100% of its products and processes, both existing and in development, with regard to quality and environmental impact, including through prior analysis of
the relevant laws and regulations in force in the countries
where the product will be marketed.
In addition, the Group uses the Life Cycle Assessment
methodology to monitor the entire life cycle of products
and processes, with the aim of extending it to all products
and processes. Currently, several methodologies and software are used to quantify environmental impact, including ReCiPe 2016.

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163

6. Synergies and Innovation

BREMBO’S DIGITAL LAB

Brembo has set up the Digital Lab,in line with the digitalisation process
undertaken by the Group to become
a “Digital Company”. This is a digitallaboratory that is responding to theGroup’s mission to develop a “dataculture”, increasingly considered as acorporate asset for creating new business opportunities and supporting
partners in the challenges of the newmobility.
The aim of the Digital Lab is to design
and implement the digitalisation projects in which three players operate:the “Domain Experts”, “Data Scientists” and “Digital Project Managers”.
The projects will then be evaluatedby the Global Digital & Innovation

Committee (GDIC) which decides on
which ones to implement and identifies the priorities. Finally, the digital
ecosystem includes the Transformation GCF, which has the task of providing support through the entire infrastructure.
The new Brembo AppLogger App,available to all employees who havea company smartphone, is part of theData Culture project. Once downloaded from the Brembo Workspace PlayStore and associated with the car, it
allows to log data on braking, brakeuse and how brakes are used, in a reliable, constant, continuous and anonymous way, with absolute respect for
privacy. The aim is precisely to create

Conscious that dialogue with stakeholders is fundamental, Brembo takes care to maintaining a transparent relationship with its customers. The Group responds to thequestionnaires it receives also in relation to environmental performance, and has strengthened collaborations
with the value chain. Moreover, it adheres to external
initiatives by taking part in workshops, conferences andwebinars in order to improve its approach to managing
stakeholder engagement. Brembo also participates in theGreen Economy Observatory promoted by the Bocconi
University of Milan, as well as in meetings promoted bytrade associations such as Assofond, Confindustria, FIRE,
ANFIA, and CLEPA. The operating model rest on the accuracy of impact data gathering, opening up possibilities fordeveloping a software capable of measuring impacts suchas those linked to raw materials production.

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Annual Sustainability Report 2023

an overall database of informationthat can be reworked and used in
product design, helping to provide
the data that feed the innovative processes that are taking shape in the
Company.
After the release in 2022 of a newversion that allows data collection in
the Brembo cloud, in 2023 the application was made available not onlyin EU countries, but also to Brembo
employees in the rest of the world.
And that’s not all: the study of newfeatures (for instance, the activationof personal statistics) that will allow
further developments, also with aview to creating internal challenges,
continued.

Beauty and functionality are in perfect harmony in Brembo which supervises the design of each product precisely insynergy with its functionality and safety. The Group carriesout various activities related to design, a value that has always been its DNA. Each project is accompanied by digitalcommunication, engagement on social media and communication with customers, in close collaboration with customers’ style centres and designers to set the design guidelines
for its new products. Moreover, for some years Brembo has
participated in the prestigious Car Design Award organisedby the magazine Auto&Design. This award is given to projects that have distinguished themselves in the field of automotive design, confirming design as a key element in thepurchase of a new model. The Car Design Award is internationally recognised as an award for excellence in the highly
competitive automotive design industry.

6.2 Collaborations to Reduce the Environmental Impact

6.2 COLLABORATIONS TO REDUCE
THE ENVIRONMENTAL IMPACTFor Brembo, innovation aims to ensure increasingly cutting-edge products able not only to anticipate and meetthe new needs typical of the automotive industry, but that
also allow to improve the environmental impact through:
•
•
•

•
•

the design of products involving the use of low-impact
materials and protections;the reduction of GHG emissions thanks to the use oflights alloys allowing to limit braking systems weight;
the reduction of particulates during braking, harmful
for human health thanks to the use of technical materials and solutions;the development of smart products such as mechatronic components;
the implementation and improvement of structured
Life Cycle Assessments, both on process and material
level.

In a perspective of open-innovation, and to improve theeffectiveness of research in these areas, the Group encourages collaboration, through networks and joint work
projects, with other players in the automotive sector: Research Centres and Universities both at Italian level (including the Milan Polytechnic, the University of Padua,
the University of Trento, the Mario Negri Pharmacological Research Institute) and at international level (where
Brembo collaborates with the Lund University and continues to partner with the Royal Institute of Technology
in Stockholm).
Brembo subscribes to various coordinating organisations
that promote industrial research in the automobile field,
including AIRI (Italian Association for Industrial Research),
ATA (Technical Automobile Association), Automotive SPIN
Italia, CAAR (Automotive Cluster of Aragon Region), CLEPA(European Association of Automotive Suppliers) and theLombardy Mobility Cluster.
In 2023, Brembo also continued to implement a seriesof European projects, two of which funded by the National Recovery and Resilience Plan (PNRR).

nPETS (nano Particle Emissions
from the Transport Sector)
The project, which is expected to end in June 2024, hasreceived funding from the European Union’s Horizon 2020
Programme in order to understand and mitigate the effects of emerging emissions of unregulated nanoparticles
generated by transport on public health and the new pub-lic policies. The goal is to monitor and sample with stateof-the-art instruments the sub 100 nm emissions generated by maritime, road, rail and air transport, both in thefield and in controlled laboratory environments. Emissions
will be characterised in terms of size, morphology andchemical composition linked with specific emission sources, such as engines, brakes, clutches and tyres, to increase
understanding of the mechanisms underlying the adverse
risks posed by the different types and sources of identified
sub 100 nm particles. The effects of nanoparticles fromvarious modes of transport and fuels, as well as from specific emission sources, will be compared paying particularattention to markers significant for carcinogenesis and inflammation.
In addition, the goal is also to complete a comprehensive
public database that collects all the chemical and toxicological information obtained to provide science-basedsuggestions for new policies specifically related to nanoparticulates.
For further information: www.npets-project.eu.

MODALES (MOdify Drivers’ behaviourto Adapt for Lower EmissionS)
Launched in 2019, the MODALES project aimed to substantially reduce air pollution from petrol and diesel vehicles. The 18 project partners worked together for 45 months to bring this vision to life and propose an approachbased on users and how their behaviour affects powertrain emissions, and brake and tyre wear. The MODALES
vision is to reduce air pollution from all types of vehicles
on the road by encouraging the adoption of low-emission
driving behaviours and correct maintenance choices. The
project, which ended in May 2023, researched, developed
and tested a range of innovative and complementary solutions that include the driver, on-board diagnostics, periodic inspections and retrofits.
MODALES was granted a nine-month extension since partof the project consisted of driving activities for data collection. This extension was the result of delays caused bysafety measures related to the COVID-19 pandemic.
For further information: https://modales-project.eu/brembo/

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165

6. Synergies and Innovation

LIFE RE-BREATH
is an ambitious project funded by European Commission’s LIFE programme in the field of sustainable urban
mobility. Launched in August 2022, this project will continue until August 2025, as part of the control and technical countermeasures for particulate emissions (PM) of
public transport vehicles. In recent years, there has beena greater awareness of pollutant emissions from braking
systems and specific countermeasures are currently being
developed for cars, but not an equal attention was given to
the public transport area. In this scenario, the RE-BREATH
project has 4 objectives:
1. to measure and demonstrate the reduction of PM10
emissions, related to the braking system of buses, atstops;
2. to support national authorities in the estimation of
non-exhaust emissions to be calculated in the EMEP/EEA emission inventory, according to Directive (EU)2016/2284;
3. to demonstrate the decrease in the brake wear rate,
and the consequent increase in the life of the braking
system compared to the traditional system, for a moresustainable economy;
4. to model a concentration map for pollutants emitted
by brake wear and a map of the exposure risk to pedestrian health, in order to support the design of a “green
intervention” along bus routes in Bergamo and Bratislava and the formulation of Guidelines for local administrations.
In practice, two fleets of 10 buses each will be implemented
in two European cities, Bergamo and Bratislava, located inregions where the EEA has declared the highest concentrations of PM (2.5 and 10). During 2023, the first braking
system retrofitting solution was designed, developed, tested and installed on a number of buses in Bergamo andBratislava.
The RE-BREATH braking solution stems from the AM Beyond Greenance Kit solution, adapted for bus application
with a dedicated friction formulation, designed for the vehicle’s specific mission.
During 2023, the first RE-BREATH solution was validated
by performing performance and wear tests that were compared with the original components of the reference application. Compared to passenger cars and light commercial
vehicles, as no test procedures exist for the assessment ofbus emissions, specific activities were carried out to assess
emissions behaviour.

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In 2024, work will continue with the development of improved solutions and the definition of optimised procedures for measuring bus emissions.
For further information:
https://www.brembo.com/en/company/news/re-breath

VERA
The VERA project is aimed at developing and optimising
innovative tailpipe and brake retrofit solutions to tackle
the issue of emissions associated with road transport.
These solutions will be mainly dedicated to the fleet ofcirculating vehicles, which are obsolete in a high percentage, with particular reference to those that travel highmileages within cities (taxis, delivery vans, buses). On thebrake side, retrofit solutions will include innovative discs
and pads to reduce brake wear and an active filtration
system to capture the particles generated. Environmental
and health impacts will be analysed and a cost-benefit
analysis will be conducted to assess the benefits of applying the new solutions. Finally, incentive and regulatory
schemes will be considered to promote the retrofitting ofexisting vehicles. The project was launched in December
2022, and an analysis was conducted during 2023 to assess the global size of the retrofit market, examine existing retrofit solutions that aim to reduce exhaust or brakeemissions, and finally highlight market gaps to guide theproject’s technical developments.
In addition, the test procedures to be used for the validation of both exhaust and brake emissions have been defined, along with the methods used to perform the chemical and toxicological analysis of the emissions generated.
Current activities focus on measuring baseline emissions
and setting emission reduction targets. Retrofit solutions
for the tailpipes and brakes are being developed, with theaim of carrying out validation tests scheduled for the endof 2024.
For further information:
https://cordis.europa.eu/project/id/101056893.

EMPOWERThe project stems from the European Commission Horizon
Europe framework programme through the 2Zero Partnership and the call to develop a modular powertrain forheavy trucks, adaptable to different mission needs.

6.2 Collaborations to Reduce the Environmental Impact

It focuses on a modular vehicle for the IVECO platform(VECTO 9), designed for fuel cell electric vehicles (FCEVs)
and battery electric vehicles (BEVs) for long distances andregional distribution. EMPOWER aims to reduce costs andimprove energy efficiency, contributing to a total cost ofownership (TCO) equal to 2020 diesel trucks. The project
involves the creation of digital models of the demonstrator
vehicles and the operational demonstration of at least two
prototypes in real mission conditions.
For further information: www.projectempower.eu.

METABRAKE
Over a period of 36 months, the MODALES consortium will
monitor the variability of driving behaviour and recognise
typical driving patterns and practices. Subsequently, basedon this knowledge, MODALES will establish the link between real-world powertrain emissions and driving behaviour with measurement campaigns using portable emission measurement systems (PEMS) and laboratory tests.
In addition, laboratory measurements for brake and tyreemissions will be conducted. In a second phase, MODALES
will create low-emission driving training courses, which will
be taught and validated in pilot exercises. Knowledge, experience and practices will be shared with other cities in
China and Latin America.
Aspects related to poor maintenance and tampering will
be analysed with a fleet of cars whose emissions are intentionally affected by lack of maintenance and/or tampering,and MODALES will observe whether current OBDs and inspections are able to detect them. Finally, an assessmentof the prospects and potential impacts of retrofits for lightand heavy-duty road vehicles and non-road mobile machinery (NRMM) will be carried out, including the promotionof their application in selected pilot cities with significant
pollution problems.
For further information: https://modales-project.eu/

The two projects benefitting from the National Recovery and Resilience Plan (NRRP) funding are illustrated
here below:

National Centre for Sustainable Mobility – MOST
In the next decades, the main challenge for tomorrow’s mobility will be to dramatically reduce emissions by reaching
the maximum possible level of sustainability at global level.
The MOST will be fully interconnected with the NextGenerationEU and, specifically, with the implementation of the
National Recovery and Resilience Plan by Italy, which willencourage the spread of low and zero emission vehicles andrenewable and low-carbon fuels for road, water, air and railtransport with specific measures on several levels: investingin green technologies, spreading greener vehicles and public
transport and promoting equal opportunities nationwide,
given the major geographical discrepancies existing in Italy.
Brembo S.p.A. is a founding partner of MOST with 25 Universities and Research Institutes, which in the three-year
period 2023-2025, will be able to count on a structured staff
of 696 researchers, including 574 newly-hired personnel andan investment capacity of €378 million. The MOST will provide a pivotal opportunity for the national scientific, industrial and economic system, addressing current and futurescientific and social challenges related to the Sustainable
Mobility paradigm. The ambition is to build a competent
Italian leadership, strongly integrated into the local areas
and local businesses, able to support the future development towards an inclusive, sustainable and decarbonised
mobility.

“Made in Italy Circular and Sustainable”
the Brembo’s ambitious vision is to enable the design andproduction of Made in Italy closed-loop, self-sufficient, self-regenerative, reliable, safe and energy-aware products andservices. The proposed expanded partnership will conduct
the fundamental research underpinning the achievement of
this vision. It thus proposes eight thematic areas on which
to focus to address the challenges currently faced by our design, production, and consumption models, as well as theend-of-life of materials, products, production technologies
and processes needed to move to greener, more circularpathways and models.

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6. Synergies and Innovation

6.3 PRODUCT INNOVATION

The automotive market has embarked on one of the mostimportant revolutions in its history, which could radicallyalter the concept of the car and its use. A profound transition as a mark of the new electric drive systems, autonomous driving and integration of different vehicle systems,
where the car is increasingly more able to carry out independent actions and provide assistance to the driver in realtime. In particular, over the next few years a sharp increaseis expected in cars fitted with hybrid and electric motors in
response to the new European regulations.
This is a revolution for which Brembo has been preparing
for almost twenty years, due to an ever greater focus andinvestment spending on electric braking system and mechatronic product research and development, through thedevelopment of competences applied to systems such as
Electric Parking Brake and SENSIFY™.
In all sectors of operation, each product is developed in accordance with the Group’s vision and the following threeguidelines: “low emission”, “high performance” and “bestdriving experience”. These products will thus be aimed at
reducing the environmental impact, improving the performance and ensuring the best user experience.
The main example of the implementation of these threeguidelines is SENSIFY™, officially presented in 2021 andrepresenting the latest development in the research workon the braking system with by-wire technology. SENSIFY™
is an intelligent braking system that integrates the mostadvanced software based on artificial intelligence with theCompany’s brake components. SENSIFY™ combines thecurrent Brembo product portfolio of calipers, discs and friction materials with digital technology and artificial intelligence to create a flexible and revolutionary platform that
includes software, predictive algorithms and data management to control the brake system digitally.
With SENSIFY™ the braking system is no longer simply asum of its parts but an ecosystem, where artificial intelligence and software play an active role. Data collection isleveraged to improve the driver experience and allows thesystem to be constantly updated.

To learn more about
Brembo SENSIFY™

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Its application development and industrialisation phases
are currently ongoing, whereas launch into production willtake place in 2025. Moreover, in keeping with Brembo’s
strategic priorities, its promotional phase is underway forboth Group clients and new players entering the electricvehicles market.
In addition to product quality, Brembo is also particularlycommitted to adapting to the tightest development times
imposed by the market and accordingly is dedicating alarge number of resources to perfecting advanced simulation methodologies in which artificial intelligence andvirtual reality are increasingly applied. The Research andDevelopment Centres operating in Italy, Poland, Denmark,Spain, North America, China and India play a key role inthese developments.
Apart from cars and commercial vehicles, Brembo intends
to achieve a greater presence in the scooter market. The
search for new markets in the field of two-wheelers thus
continued. To this end, benchmarking has been carriedout with currently mass-produced products to define a
product specification, as well as a market to enter onto.
The design activity has led to the construction of the first
prototypes. Within this context, the collaboration withnew players that have entered the EV sector has becomea priority strategy for the Group which has begun to define the market and the product technical specifications
with some of them.
Moreover, Brembo continued to conduct R&D activities incooperation with international Universities and ResearchCentres with the aim of constantly seeking out new solutions to apply to brake discs and calipers, in terms of
new materials, innovative technologies and mechanicaland electronic components. The need to reduce productweight is leading the research function to evaluate theuse of unconventional materials, such as technopolymers
or reinforced light metal alloys, to produce structural components.
Another initiative in this area is Brembo’s investment in
Infibra Technologies, a spin-off of the academic institution
Scuola Superiore Sant’Anna in Pisa, specialised in developing photonic sensors through the use of fibre-optics as thesensor element.
Within the Systems GBU, the goal of using the braking system to help reduce vehicle consumption and resultant CO2
emissions and particulates is being pursued through the6.3 Product Innovation

development of new solutions. In detail, the use of methodologies to minimise caliper mass for the same performance, the improvement of caliper functionality by defining new characteristics for the pairing of seal and pistonand optimisation of a new-concept pad sliding system continue to feature among the main areas of development.

in its entirety. The development of a friction module, consisting of disc and pad, designed for each of these new
types of disc therefore becomes essential for achieving
emission targets without compromising performance, thus
managing to offer Brembo customers solutions consistent
with the Group’s vision and its guidelines.

Overall, the main areas that reflect the Group’s capacity todevelop new generation brake systems are as follows:

Considerable attention is being devoted to the new needsof hybrid and electric vehicles, which use regenerative
braking and thus introduce new requirements for brakediscs, instrumental to solving issues relating to disc resistance to corrosion.

DISCS AND CALIPERS

In the area of brake discs for cars and light commercial vehicles, the strategic priority for 2023 was the developmentof brake discs with solutions designed to meet the criteriaof the new Euro 7 standard on pollutant emissions fromcars and commercial vehicles and which, for the first time,
also introduces new provisions for particulate emissions
from braking systems.
Brembo has been active for years in the development ofsolutions for the reduction of particulate emissions frombrakes. As early as in 2020, it presented the Greentive®
disc, characterised by an innovative coating applied to thecast-iron braking ring that ensures very low wear and tear,extends disc life and, thanks to the combination with thespecifically developed friction material, also reduces particulate emissions during braking, thus limiting the impact on
the environment.
Relying on the expertise gained through the Greentive®
disc, over the years Brembo has forged ahead with research,development and testing of advanced solutions to be applied to cast-iron discs through the study of new materials
and the adoption of technologies and surface treatments
never used before for brake disc applications. The research
focused in particular on the “Laser Metal Deposition” technology, where a thin layer of material is deposited on thedisc at high speed by means of laser overlaying, which due
to its characteristics reduces wear and tear and emissionsof particulates from the disc itself during braking.
Equally important is Brembo Friction’s concurrent development of brake pads that can markedly contribute to creating an ideal combination with the brake disc.
Thinking of the single component — disc or pad — as anindependent unit fails to address the problem of emissions

All the new solutions, which aim to reduce environmental
impact and improve aesthetics and corrosion resistance, aremeeting with strong interest among Brembo’s main clients.
In this regard, the development phases with major car
manufacturers continued, while in Europe production ofdiscs that will adopt one of these technologies began in2023 for a major electrical vehicle manufacturer.
According to precise guidelines applied throughout the
automotive sector and all of Brembo’s development activities, considerable attention is also paid to new solutions
that are able to reduce disc weight: a lower weight translates into a greater driving range for electric vehicles andlower fuel consumption of internal combustion vehicles,
and consequently into a reduced environmental impact inboth cases. This aspect will become even more importantdue to the entry into force of the new Euro 7 Regulation. In
car applications, after having worked with a major German
customer to develop the concept for the light brake discinstalled in its new platform of core vehicles, Brembo will
also extend the supply of this product — which enables areduction in weight of up to 15% compared to a conventional disc — also to a new platform of fully electric vehicles, whose application development phase is underway.
Application development activity on discs for heavy commercial vehicles with major European clients with solutions
aimed at improving performance and reducing weight isin the final phase. The related series production will begin
during 2024.
Building on the experience gained in the field of light commercial vehicles, the research and development of new
products compliant with the requirements for pollutant
emissions (Euro 7), which are also being released for thiscategory of vehicles, will continue in 2024 for this market
segment as well.

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6. Synergies and Innovation

The search for new markets in the two-wheel field is also
focusing on green mobility. The Group has signed a collaboration agreement with a first client for the developmentof a high-performance braking system for use on high-performance products. After concluding the first tests, theproduct requirements have been frozen and the Group is
currently engaged in the “Design Freeze” phase, which will
be closed in February 2024.
Activities are also continuing for the development of green
materials such as recycled aluminium for calipers and on
the pad friction materials.
Finally, the Group continued to invest in the search for low
environmental impact friction materials for the “low emission” and “high performance” line. In the case of the former,
materials paired with coated discs are being developed,
whereas in the case of the latter materials under development are paired with all types of carbon ceramic discs.

PADS

Brembo Friction, structure dedicated to the study and production of brake pads, continues with its steady commitment to developing traditional customer-oriented friction
materials and increasingly high-performance materials for
racing cars. The consolidated expertise on friction materials also relies on the know-how of the subsidiary BSCCB(Brembo SGL Carbon Ceramic Brakes), for the developmentof pads combined with carbon ceramic discs for ultra-highperformance cars.
This focus also sits alongside accompanying and anticipating the automotive market trends, which are increasingly
green-oriented and the introduction of hybrid and electricvehicles that require materials that are no longer merely
high-performance, but also environmentally friendly, witha focus also dedicated to the aesthetic aspect of corrosion.

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The inclusion, for the first time, in the Euro 7 standard alsoof braking system emissions, with particular regard to pademissions, reflects a clear vision of current trends.
Brembo Friction is therefore decisive for expanding thebraking materials portfolio that allow to maintain highperformance, ensuring braking safety, with increased attention to both the aesthetic aspect in general and component corrosion, without neglecting driving comfort(absence of noise and vibrations), as well as developing
expertise that can also be applied in new and increasingly
complex systems such as the Electric Parking Brake and
SENSIFY™.
The integration with the new mechatronic systems
thanks to the constant technological evolution in the automotive field has paved the way for the development ofa brake pad concept with embedded sensors that aims to
make the braking system increasingly integrated within
new vehicles.
To this end, Brembo Friction avails of data-driven methods. This year, it participated in the Hackaton event at theBrembo Inspiration Lab — Advanced Technology Center in
California, with the aim of developing the formulations ofspecific friction materials and identifying the raw materials
that most influence their properties.
On this basis, dedicated works continued on developing
friction materials aimed at increasingly innovative discs.
In fact, new coatings and new treatments require pads
designed and produced specifically to reduce PM10 emissions. This development is made possible — also thanks
to the increasingly close partnership with the main global
manufacturers —, by the support of cutting-edge internal
testing, a top-tier laboratory, and constant collaboration
with university centres. These allow to define synergistically, every time, the new approach, obtaining the best results, and thus enable the expertise acquired in the field ofpassenger cars to be extended to light and heavy commercial vehicles as well.

6.3 Product Innovation

LIFE CYCLE ASSESSMENT

Brembo looks to a future in which theLife Cycle Assessment methodology
will also be extended to all products
and processes, a study that allows theimpacts on the environment and human health to be quantified, startingfrom the consumption of resources
and CO2 emissions.
Projects such as AFFIDA and LIBRA
flow from Brembo’s increasingly close
focus on the environment.
AFFIDA, the natural extension of the
COBRA project (which was part of theEuropean Life+ project), in collaboration with the Mario Negri Institute,seeks to bring to the OE market theinnovative technology of inorganic
binders, having a key role in reducing volatile organic compound (VOC)
emissions, with important positive
repercussions for the environment.
The new materials reach performances on a par with their traditional predecessors, while also meeting thehigh-performance standards requiredby the most challenging sporting applications and guaranteeing low fineparticulate emissions and a lower consumption of resources. Thanks to apress created with ad hoc technology,
this innovative technology, completely different from that used traditionally, has now successfully passed theprototype pre-industrialisation phase.
The specific improvement activity as
regards NVH has thus been started.
LIBRA, a European project now concluded, but which has been ongoingsince 2015 as an internal development
activity, allowed to eliminate the steel
backing plate in brake pads, replacing
it with high-performance composite
materials. The project continued withthe research of new raw materials andnew technologies, with clear advantages: from a lighter pad, with the resulting
reduction in the overall brake system’s
weight, to a shorter production process.
Since 2022, a team has also been working on assessing the environmental impacts of products, providing guidanceon the main areas of impact to be reduced through targeted interventions.

The team achieved full operational status during 2023 and will support internal structures in assessing and identifying areas of sustainable development
to be taken into account together withthe design of products and processes.
The activities carried out during lastyear led to the quantification of the environmental impacts along the entire
life cycle for Brembo’s main productfamilies such as discs, brake calipers (including some Brembo-produced components) and brake pads. The impactsof other products still under development were also assessed.
Since 2021, several customers havestarted to request information in the
LCA area, setting mandatory requirements applicable to new projects. To
ensure a prompt and correct responseto these requirements, Brembo hasorganised in-depth discussions on the
topic with its main customers, awarethat the involvement of the supply
chain is necessary in order to havedata on the impact of the materials
being purchased.

INNOVATION IN THE R&D AREA

R&D GCF activities involve constantmonitoring of the evolution of vehicles, in line with the main generaltrends of ensuring high performance,
reducing emissions and providing users with the best possible experience.
To do this, Brembo is also investigatingareas such as electrification and fuelcells, advanced driver assistance systems (ADAS) and autonomous driving,

the constant reduction of environmental impact and connectivity. The highlevel of integration will increasingly
bring the brake system into dialogue
with other vehicle systems, such as
electric-drive motors and new suspension/steering concepts. Such integration will allow for increased active
safety and the optimisation of functions, such as regenerative braking.
The first half of 2023 also saw thestart of the globalisation of innovation processes at the Brembo Inspiration Lab, with the launch of the new
Advanced Technology Center (ATC)in Silicon Valley. Product innovation
takes place in the ATC in synergy with
the integration of new methodologies
and algorithms linked to data science,
making use of the research centres,
institutions and universities within
the local innovation ecosystem.

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6. Synergies and Innovation

Brembo’s ability to achieve relevant results in all the areasin which the Group is committed to product and process innovation stems from the work of the employees operating

1,555FTE

71

employees(Full Time Equivalent)
engaged in research anddevelopment activities

in the various company areas. Among them the following
can be mentioned:

303FTE

employees(Full Time Equivalent)
engaged in testing
activities

946FTE

employees(Full Time Equivalent)
engaged in quality
management anddevelopment activities

6.4 L
 ISTENING TO CUSTOMERSFOR PRODUCT IMPROVEMENT 71

The Group collaborates and exchange views daily with themain manufacturers of vehicles equipped with Brembo
brake systems to understand and anticipate their futureneeds and promote the joint development of new solutionsin technological areas that have yet to be consolidated.
It is equally important for the Group to establish constantdialogue with the end users of vehicles equipped with its
products, in order to understand to what extent Brembo’s
solutions meet their expectations and what aspects canbe further improved, particularly with regard to perceived
quality and comfort. For Brembo, end users are not only users of vehicles equipped with its products, but all those whointeract and have an experience with the brand. Therefore,
the end-user engagement strategy, i.e., the construction ofa solid and long-lasting relationship of trust, not only withthe buyer, sometimes indirectly, but with anyone who hasinteractions with the brand.

The Group is committed to the constant development ofdigital channels for contact and communication with its
customers and end users. Important in this context is theGroup’s corporate website Brembo.com, which recorded
over 4,100,000 million visitors in 2023. It should be notedthat website visitors are increasingly “mobile” as nearlyfour out of five connected to the website through a smartphone or a tablet.
Brembo is also active on the main social media (Facebook,
Instagram, Linkedin and Twitter) where it publishes numerous contents designed for different audience segments
and optimised to be enjoyed in the best way on the various
networks. The Group also recorded excellent performanceon these channels during last year, with a general increasein engagement on the 4 main channels, with over eight
million interactions.

71 Full Time Equivalent – FTE represents the workforce calculated based on the hours actually worked and/or paid by the company in which they are employed.

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6.4 Listening to Customers for Product Improvement

Brembo’s presence also continues to grow on WeChat, themost popular social network in China, and on other Chinese social platforms such as the WeiBo microblogging
platform and the Youku video hosting channel.

the subject, which are collected in the monthly and annual press review. The total number of radio and television
articles/reports published in 2023 in which Brembo wastalked about or at least mentioned is 86,034.

In this regard, Brembo has defined the “Group Guidelines
for the Use of Social Media” containing guidance on theuse of social media by Brembo People, where there is aclear or expressly stated link on the employment relationship between the Group and the individual, with the aimof preventing any conduct that may harm the business,
Brembo’s image and reputation.

The emerging data show that the topics most covered by
the press involves cars with 50,183 articles, followed by motorbikes with over 13,146 articles and institutional matters— including CSR-related topics — with over 10,117 articles,
and then by articles focused on products dedicated to enthusiasts, relating to financial matters and racing.

Press office and media relations activities represent a fundamental asset to make the public aware, through relations with the press, of the Company’s mission and vision,values, history, activity, its products and services. This typeof activity takes place daily through personal relationships
with the media, but also through the sending of information material, organisation of targeted interviews or press
events dedicated to the launch of new products/services,
and attendance at motor events, fairs and races. The result of this work is the publication of articles and radio
and television reports, in which Brembo is mentioned or is

The above-mentioned data refers to figures recorded in
2023, up to the date of publication of this document. Additional mentions attributable to 2023 but received retrospectively are not included in this count.
Building a narrative universe around Brembo that is able
to amaze, excite and involve all stakeholders: this is thegoal with which, in 2023, the Group created several opportunities to talk about itself, its activities and its products,
through trade fairs, meetings with the press and institutional and internal events.

86,034
Articles and radio
and TV reports

50,183

12,588$Other (racing, finance, etc.)

Cars

13,146
Motorbikes

10,117
Institutional

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6. Synergies and Innovation

Trade fairs represent the big stage where innovation takes
centre stage and the Group unveils its latest braking solutions. In 2023, Brembo participated in Auto Shanghai
where, during the press conference organised for morethan 15 Chinese journalists, it presented its latest products
dedicated to original equipment. The same format wasused to present the new brake pads dedicated to the aftermarket for the first time in China, during Automechanika
Shanghai, in November 2023.

EICMA also saw the presentation of the first high-performance braking system consisting of caliper and brake discdeveloped for SSVs (Side-by-Side Vehicles). Greatly increasing braking performance, the 4-piston SSV caliper provides
driver confidence and easy maintenance, in addition to aweight reduction compared to the original parts. Designed
to ensure robustness and safety, the Brembo SSV caliper
combines the Group’s experience in road applications with
its history in motorsport.

At EICMA 2023, Brembo presented the new Hypure brakecaliper, designed for high-performance motorbikes. The
new Original Equipment brake caliper, that boasts unparalleled performance and a distinctive asymmetrical design,
allows a 10% weight reduction compared to the reference
caliper for the same application, making it the lightest
component in its class.

Finally, Brembo presented the new 16RCS Corsa Corta RR.
The design of this new clutch master cylinder incorporates
all the style features already adopted in the company’s RCS
corsa corta RR family of products. That was also the reason
why the brake master cylinder from the same range won theprestigious Red Dot design award in 2023.
Developed especially for widely popular high-performance
motorbikes, the new RCS corsa corta RR clutch master cylinder has a 16mm floating piston diameter to improve thefeel and application effort on high volume engines. The idle
stroke setting is already set to minimum – like the mastercylinders used in competitions – for greater precision in use.

To learn more about
HypureThe latest evolution of the Brembo GP4 family was alsopresented during the event: the GP4-MotoGP brake caliper, designed and developed to equip the most powerfullatest-generation racing motorbikes. Brembo’s GP4-MotoGP is a brake caliper born from the racetrack for the road as
it encompasses all the latest technologies, processes andthe most innovative materials together with the know-how
acquired by Brembo in its many years of experience in the
racing world.
Particular attention has been paid to the introduction ofventilation fins on the outer body and the new racing pistons, both characteristics which improve the braking system’s thermal exchange, contributing to cooling it.

To learn more about
GP4-MotoGP

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Brembo has been recognised as “Top Innovator” in the“Green” category by the European Association of Automotive
Component Manufacturers, thanks to its Brembo Beyond
Greenance kit. This kit offers a more sustainable solution forlight commercial vehicles, by reducing particulate emissions
up to 83% in PM10 and 80% in PM2.5, ensuring savings overthe life of the vehicle. The Greenance Kit, presented at Automechanika and now available in various light commercial
vehicle models, ensures an increased durability of the brakediscs, extended mileage and lower environmental impact.

To learn more about
Brembo Beyond Greenance

OCTYMA is the latest addition to the Brembo stable, an8-piston aluminum brake caliper that blends style, design
and identity with functionality, performance and cutting-edge content. OCTYMA, from the Latin “octo”, indicatesthe number of pistons, but a figure of eight also symbolises
infinity and a constant flow of energy and power that represents balance and harmony.

6.4 Listening to Customers for Product Improvement

OCTYMA recalls the optimization of pad pressure distribution, made possible by the new cross layout for the pistons.
This characteristic is highlighted in the caliper body design
to convey the innovation and unique quality of the new
braking system. OCTYMA is power and style.
Moving overseas, Brembo took part in AAPEX in the UnitedStates, where it presented the world premiere of the new
Xtra brake pads for the aftermarket; while SEMA and PRI
were the occasions to talk about the new CCM-R Plus brakedisc for racing and supersport applications.
The star of the strategy for the development of innovative
solutions is certainly SENSIFY,™ winner of the Gold Awardin the “forward-looking chassis” category. The system consists of a flexible and revolutionary platform that includes
software, predictive algorithms and data management tocontrol the brake system digitally and customise brake response so as to improve driving pleasure.
In 2023, Brembo’s intelligent braking system roadshow
came to an end, reaching Japan, after Italy, the UnitedStates and China, with an exclusive track event dedicatedto the press and the main Japanese manufacturers.
For Brembo, e-sport is certainly another important area inwhich to tell its story: in its capacity as technical partnerof the video game Gran Turismo™ 7, it participated in theGran Turismo World Finals in Barcelona. In addition, on theoccasion of the launch of the film dedicated to the famousvideo game, the Group organised a preview for journalists
and exclusive screenings in Italy, the US and Japan dedicated to its People and their families.
Again in relation with the sports arena, though through a
traditional channel, Brembo participated for the second
year in a row in the “Festival dello Sport” with RCS-Trento
where it played a leading role with its technology, racing
products and contributions in the talks on the competitions. During the F1 GP at Monza, it organised an employee
engagement activity at “Casa Brembo”, the exclusive hospitality venue inside Monza Park, offering the unique experience of attending the qualifying day to some employees
selected following an internal motorsport quiz.

the 125 class, and the braking system that he used during
the last MotoGP race, in Valencia, in 2021.
In 2023, Brembo was for the first time the official partner ofthe historic Le Mans 24 Hours, now in its 100th year, experiencing the event as a lead protagonist. As a Braking Technology Provider, it supplied 44 of the 62 cars in the race,
thanks to the advanced braking technologies developed
specifically for the needs of each team.

To learn more about
24 Ore di Le Mans

For Brembo, the value of sport is something that goes beyond the track. As Top Sponsor of Atalanta’s Youth Sector,
the Group supports the educational, cultural and competitive role of sport by rewarding the most deserving boys andgirls who stand out for their loyalty, spirit of sacrifice andteam spirit, skills transversal to school education.
2023 also saw the second HACKATHON organised by theGroup at the Brembo Inspiration Lab in Sunnyvale, California. Based in the heart of the Silicon Valley, the Lab is a centre of excellence focused on strengthening the Group’s expertise in software development, data science, and artificial
intelligence. Participants had the opportunity to immersethemselves in machine learning and artificial intelligence(AI) to revolutionise current braking technologies, outsideof traditional innovation processes, in line with Brembo’s
vision: “Turning Energy into Inspiration”.

To learn more about
Brembo Hackathon

On the Misano circuit, Brembo awarded Valentino Rossi
a unique celebratory trophy, which tells the story of theunbreakable bond between the world champion and theGroup. The award was in fact made with parts of the firstbraking system that Valentino used in 1996, at his debut inAnnual Sustainability Report 2023

175

6. Synergies and Innovation

2023 was the year of Bergamo Brescia Italian Capital of Culture. As a system partner of the event, Brembo took partin its main press events and participated in “The Thinking
Factories” and “Bergamo Brescia Business Culture” exhibitions, where it displayed its products winners of the Compasso d’Oro in 2004 and 2020. Two important events that
told the story of the excellence, design and industrial culture of the local area where the Group originated and is stillpresent today.
Brembo was also the protagonist in Delhi of “Italian Tech”,
the initiative promoted by the Italian Embassy and the
Italian Chamber of Commerce in India to highlight Italian
excellence in the country. As a guest of Ambassador Vincenzo De Luca, Brembo told the Minister of Commerce andIndustry Piyush Goyal, the Minister of Foreign Affairs and
Italian Deputy Prime Minister Antonio Tajani and the audience present about its presence in the area.

to celebrate Brembo People whose projects had stood out
in a particular manner.
The Group is committed to the constant development ofdigital channels for contacting and communicating with its
customers and end users, both through an ecosystem of
websites and through coverage of the most popular social
network platforms.
The Brembo web ecosystem has, alongside the Brembo.com
site, a set of other sites dedicated to specific stakeholders
in order to provide each type of user with the best possible experience such as the bremboparts.com site (dedicatedto consultation of the product catalogue and professionals)
and the Brembostoreusa.com and Brembostore.cn sites(dedicated to e-commerce). These add to the websites dedicated to specific brands or products such as Sensify.brembo.
com, Marchesiniwheels.com, Sbs.dk, Apracing.com, Jjuan.esor Carbonceramicbrakes.com.

In May 2023, at the launch of the expansion of the site in Escobedo, Mexico, Brembo hosted numerous journalists andrepresentatives of institutions, including Luigi De Chiara,
Italian Ambassador to Mexico, Samuel Garcia Sepúlveda,
Governor of the Mexican State of Nuevo León and Andrés
Mijes, Mayor of Escobedo. In the same month, it welcomedNicole Hoffmeister-Kraut, Minister for Economic Affairs,
Labour and Tourism of the Federal State of Baden-Württemberg, to the Group’s headquarters at Kilometro Rosso.
In June, the Italian Minister for Education and Merit, Giuseppe Valditara visited the social project “House of Smile”
in the city of Pune, India. The project was created in 2017
thanks to the collaboration between Brembo and Fondazione CESVI. Moreover, Italy’s Ambassador to Poland,
Luca Franchetti Pardo, visited Brembo’s production site ofDąbrowa Górnicza.

The website Brembo.com seeks to communicate with all
stakeholders in the relevant market sectors (Cars, Motorbikes and Performance), presenting the Group’s global
activities, product ranges and all market information tousers the world over. It also offers a general overview of
the Group’s history, in addition to a wide range of editorial
content. The production of new editorial content continued
to be significant in 2023 as well, with 79 editorial content
postings published.

Brembo’s values and identity are certainly expressed
through institutional events and media relations, but theyfind their maximum expression in the dialogue with those
who live the Group, day after day: its People. An example of an engaging communicative approach are internal
events which, thanks to their ability to create a strong
sense of cohesion, belonging and community, are considered moments of cultural and personal growth, interaction and sharing of experiences.
The Brembo Awards, a global event that rewards the best
ideas and projects on sustainability, innovation and excellence, are an example of this. In 2023 as well the event
was fully digital and open to all the Group’s People. An
event built entirely around the ideas of the finalist teams

Brembo performs very well on the main social platforms interms of number of followers (both qualitatively and quantitatively) and user engagement level. The follower base of
the nine main channels (Facebook, Instagram, LinkedIn,
TikTok, Threads, We-Chat, Twitter, Douyin and Weibo) increased by over 20% in 2023, largely exceeding the milestone of three million followers.

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In addition to the main Brembo’s website, mention
should be made above all of the success of BremboParts.
com as a “one-catalogue” site that brings together in asingle integrated catalogue all Brembo products (bothAftermarket and Upgrade) for cars, motorbikes and commercial vehicles.

The engagement level of Brembo’s followers also significantly increased compared to the previous year, with an
overall +9% increase compared to 2021. The level of engagement with its followers should be interpreted as thebrand’s ability to stimulate conversations and constantly offer a good reason to talk about and interact with

6.4 Listening to Customers for Product Improvement

the brand, and considered as one of its most valuable
intangible assets in the current context of the knowledge
economy.
Considering all the social platforms on which Brembo ispresent, more than 1,500 postings and nearly 5,000 stories
were developed and published in 2023.
Of particular note is the greater focus during 2023 on social
platforms that are particularly popular among young people, such as Instagram and TikTok, and on video formats,content that is particularly appreciated especially by theyounger generations thanks to their ability to be more immediate and engaging.
During 2023, about 250 reels were published on IG that obtained half a billion views overall. In total, all the content
published by Brembo on its IG channel obtained over 1.7
billion impressions. This also contributed to a significant
expansion of the follower base, which grew by 15% during2023. The year that has just ended also saw the consolidation of the content of Brembo’s TikTok channel, which
received over 200 million views in 2023.
Finally, mention should be made of the birth of Threads,
the Meta platform’s new social channel, where the Brembo
account has consolidated its presence thanks to an accountthat in a few months has exceeded 90,000 followers.
Brembo’s social profiles are mainly directed at a young
audience, distributed uniformly between Europe, the USA
and Asia and with the aim of further increasing communication activities directed above all at GenZ. From an age
point of view, almost 70% of the brand’s followers are under 34 years old, a figure that allows to understand that
Brembo is also well positioned in the younger generation
segment. The aim is to further expand the audience ofyoung and very young people, in line with Brembo’s strategy and global approach.

No. OF FOLLOWERS IN 2023

Facebook

Instagram

LinkedIn

X

We-Chat

Weibo

Dou-yinTik-Tok

1,530,008

921,843

249,220

32,166

120,728

52,00165,00078,573

No. OF INTERACTIONS IN 2023

Facebook

Instagram

LinkedIn

X

We-Chat

Weibo

Dou-yinTik-Tok

2,050,959

15,923,467

91,753

9,872

9,373

33,242

1,100,000

1,200,000

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6. Synergies and Innovation

6.5 CREATIVITY AND METHOD:
ENSURING PRODUCT SAFETY

The main function of each Brembo product is to ensure
people’s health and safety through total reliability of its
braking systems. Following a preventive and proactive approach, Brembo is committed to applying the voluntary
technical standards that national and international standards bodies develop to define in detail how to produce
excellent products and align its own production processes with best practice, guaranteeing safety, quality, respect
for the environment and certain performance. All Brembo
products have to pass controls and checks designed to ensure their quality and safety, following a logic of ongoing
improvement, which makes an essential contribution toincreasing the ability to meet all requirements, as well asprocess efficacy and efficiency, both within the Group andthroughout the supply chain. From this standpoint, whereapplicable, every problem identified and resolved for a
specific product is then extended, on the basis of a “lesson
learnt” approach, to the entire Brembo product range.

FAMILY FEELING

Design, for Brembo, is the way to be recognised at firstglance. Combining one’s own distinctive language and a“family feeling” with that of the customer means equipping
the product with visually distinctive elements that immediately associate it with the brand to which it belongs. Similarly to what happens in a real family, every single member —each product — shares some features with other members,
such as the colour and the shape, as well as some common
elements of cohesion and quality. Adopting this approachrequires the engagement of customers from the very early stages of project, to define together the main features ofa product’s design, colour and style. Once any product andprocess-related criticalities which have a potential to jeopardise the product’s look and design have been analysed,
corrections to be implemented are identified just before thebeginning of the start of production. This phase is managed
by the Research and Development department in collaboration with the Design area of the Marketing GCF to ensurethat the innovative content is also emphasised during thedevelopment of new products.

100%

Safety performance assessments carriedout of products and services

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Annual Sustainability Report 2023

TESTING

During the development and technical approval stage, eachproduct is subject to tests, carried out in different operating
conditions. These are tests designed to define its quality,
performance and efficiency and are performed both in
type-approved laboratories, and on the road and racetrack.
This process follows a rigorous sequence that includes static bench tests, dynamic bench test cycles and subsequent
on-road tests. These three steps are needed to ensure thatthe products meet the relevant requirements, to identify
any discrepancies with the quality standards pinpointed
during the design phase and to test the braking systems
in operating conditions similar to actual usage conditions.
Specific checks are also carried out during the production
cycle, covering up to 100% of products, designed to identify
any discrepancies with the rigorous quality standards defined in the design phase.
The tests required for Brembo product approval are carriedout by the Testing & Validation departments, where theprototypes manufactured are approved by performing aseries of tests initially both on test benches (static, dynamic and roller) and on vehicles (on-road or on-track). These
tests, shared with customers, are defined at the beginningof the project in order to verify all those characteristics that
could be critical before entry into production, anticipating
the checks that will be carried out at the end of the production line.
With a view to digitalisation, some of the approval tests arebeing carried out on a vehicle simulator in order to lighten
the drivers’ activities on the final vehicle (also with an eye
to safety and sustainability), limiting them in relation withthe most promising configurations.
The entire test system falls within the solid Project Management (BPDS - Brembo Product Development System)
deeply renewed in 2022 with the creation of “Stargate”, amanagement system based on Project Management, astructured method that, focusing on the principles of planning, coordination and control, enables to develop and follow a new project in all phases of its evolution. By planningand managing specific inspection moments (“gates”) —approved by the relevant organisational levels according
to risk level of a technical or financial nature assessed foreach gate —, and handling any recovery plans, the Stargate system makes it possible to verify the suitability andcompleteness of the activities carried out during development, guaranteeing that the mass-produced products fullycomply with the set requirements.

To learn more
about
Brembo Design

6.5 Creativity and Method: Ensuring Product Safety• The Group also works with the National Unification Commission
for the Automobile which, in theframework of UNI federated bodies, assists with defining technicalstandards and instructions for production, testing, the correct use andmaintenance of vehicles, motor vehicles, operating machines and related components so as to improvetheir safety and reliability.
• Moreover, as an expert member onfunctional safety, Brembo participates in the joint working group

In view of the importance that the Brembo Product Development System has for Brembo, the Quality GCF , with thesupport of the Brembo Academy, provides regular special
courses on the BPDS both to train new personnel joining
the Group in platform roles, and to standardise the methodology’s development within all Platforms and across all
Global Business Units.

FMEA/FMECA

To ensure maximum safety and quality of its products,
Brembo adopts an approach enabling to anticipate any
problems and criticalities along the entire production cycle, so as to take preventive correction measures. In detail,during the design and development phase, the Group
carries out product and process FMEAs/FMECAs to identify in advance the weaknesses and critical issues that
could compromise product reliability and safety, by defining the necessary improvements and priority measures tobe taken before the product enters into production. FMEA
methodology is used, in particular, to identify productand process characteristics having a potential impact on
end-user safety, so that these characteristics can be managed and controlled systematically throughout the entire
production chain (product development, internal process
and supplier process). These elements represent a fundamental part of Brembo’s Quality Management System,compliant with IATF 16949:2016 technical specification72.

in technical commission TC22/
SC32/WG8 and TC22/SC32/WG13
appointed to improve standard
WG 8 ISO 26262 regarding thefunctional safety of electrical andelectronic systems in motor vehicle
production.

This system, characterised by Guidelines common to all
the Group’s plants, allows best practices to be transferredfrom one plant to another, as well as all the sites to be
managed with the same standards and quality indicators.
The effectiveness of the Quality Management System
is verified periodically through specific internal systemand process audits and through third-party audits relating to compliance with IATF 16949, annually, ISO 26262
and ASPICE, on specific projects. Like other management
systems, in newly opened sites the Quality Management
System is implemented when production gets underway
and certification audits are normally carried out around
twelve months after the plant is commissioned.

100%

of manufacturing plants
is IATF 16949:2016-certified

QUALITY MONITORING PROCESS

Brembo has established a structured internal and external
quality monitoring process, which also involves clients andsuppliers. In detail, product quality and safety is monitored
at all the Group’s plants, by using specific indicators. The
latter are set out annually by the Quality GCF as part of
the Quality Plan, which also sets yearly quality objectives
in this field for the individual GBUs, Plants and the Group.

72 The Zaragoza site is ISO 9001 certified as the IATF scheme does not apply to aftermarket sites. For the plants of J.Juan (Myasl and Jiaxing), which were
ISO 9001-certified upon their acquisition, activities are underway to integrate them into the Brembo Quality Management System. This will lead to the
IATF 16949 certification by Q1 2024.

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6. Synergies and Innovation

From an internal standpoint, the most important indicators involved are those regarding waste, while from an external standpoint, those regarding complaint monitoring
and the number of defective items sent out to clients are
key, both as regards their level of criticality (in terms of inconvenience for the client) and severity (in terms of theirimpact on end-user safety).
Brembo also monitors any product recalls from the market, or customer’s notifications of non-compliance with thepre-defined qualitative standards. A project was launchedin 2023 for redefining quality indicators allowing to better
assess Customer Perception. The monitoring of these indicators will be carried out as of 2024.
Specific indicators are used including to monitor the quality and safety of the products provided by suppliers andwhose performance in assessed also in relation to the spe-cial supply statuses assigned and the impact generated by
the related non-conformities on the end customer and on
any market recalls.
Should these indicators reveal situations that diverge fromthe established objectives, action plans are immediately
put in place to restore compliance and, where necessary,ad hoc committees are organised in which Top Managers
are invited to take part as well.
News is regularly monitored, particularly government
agency news, regarding recall campaigns already initiatedon the market by vehicle/part manufacturers on products
similar to Brembo products and with potentially relevant“failures”. This activity is performed in order to verify the
Brembo’s robust design and initiate preventive checks on
similar Brembo’s components, where needed. Lastly, basedon this information, a specific analysis may be performed
relating to Brembo’s risk exposure.

EUREKA: A SOFTWARE TO TACKLE AND MANAGE PRODUCT CRITICALITIESAs of 2019 Brembo implemented“Eureka”, a software that will enable
the company to revolutionise themanagement of all product issues,
both in the development phase andfor products that have already entered
the mass production phase. Eureka isa tool intended to support those whohave to face any critical product issues
by conveying all the relevant information in a single container. The software
allows not only to understand the underlying causes in a more structured
and faster way, but it also enables theplants to more easily share solutions,by making such information available
to the people involved at the various
Brembo offices. The problems, whether internal to Brembo or reportedby the client, can then be managed
by the relevant teams using a common problem solving methodology.
Thanks to Eureka it will also be possible to view similar cases that havealready occurred at other sites and to180

Annual Sustainability Report 2023

know in real time how and by whomthey have been solved. The goal is touse shared knowledge to preventively
manage potential problems, preventthe occurrence of the same problem
at other plants and / or on similar
products. Eureka combines under
the same name two basically ‘twin’software, one dedicated to products
under development (Eureka Development) and one to series products(Eureka Production). Finally, the new
system allows real-time reporting of
problems underway and how they arebeing managed, resolution times andcompliance with the pre-set deadlines, providing a brief overview of theissues underway.
Brembo has defined a specific guideline to manage all product non-conformities reported by customers,
describing their responsibilities andoperating methods.
In particular, for each non-conformity,

it provides for the implementationof a Structured Problem Solving process that makes it possible to identify
the causes, as well as of appropriate
remedial actions to eliminate saidcauses and standardise the solutions
on similar products/processes so as to
avoid the problem recurring.
Product quality and safety issues, ifany, are discussed within specific Committees with the Top Management.
In order to promote and ensure thesystematic application of the newtool, training activities have been carried out in all the plants worldwide
involving all functions. To date, 100%of problems with customers weremanaged with Eureka Production, irrespective of the type of product andapplication, car or motorbike, discs orcalipers, and positive feedback wasalso confirmed for the Eureka Development twin software.

6.5 Creativity and Method: Ensuring Product Safety

ACTIVITIES GUARANTEEINGPRODUCT AUTHENTICITY

For the Group, safeguarding the safety of those who buy
and use Brembo equipment also means promoting initiatives aimed at countering product illegal counterfeiting
activities and fraud in the distribution channels. The saleof counterfeit braking systems may represent a source ofhigh risk for the end user due to the importance of thebraking system as a safety component in vehicles. In fact,
it is not uncommon that counterfeit products are found to
be extremely dangerous because they are not made with
controlled materials and are inadequately tested in the
production phase.
As Brembo’s main products are considered “high-classproducts”, they are copied in many areas and especially in
Asia. For this reason, the fight against counterfeiting was
also part of Brembo’s action plan in 2023, which is proving
to be very efficient in terms of results obtained and total
sales blocked.
The collaborations established by the Group over the years with public institutions, public security authorities
and customs control authorities are also fundamental in
Brembo’s fight against the production of and illegal tradein counterfeit products. In this context, in line with the previous years, Brembo’s collaboration with OLAF - European
Commission Anti Fraud Office continued also in 2023 toprevent the growing presence of counterfeit products.
The Group has focused on online, on-site and trademark
protection.
To better address online counterfeiting, Brembo carries out
an in-depth and continuous analysis of more than 150 global market/social platforms, carefully monitoring any domain names that contain one of the Group’s trademarks
or similar.
Thanks to these activities, important results were achievedin 2023:•••••

In 2023, Brembo organised several investigation operations and blitzes against the Chinese market, in collaboration with the local police and port customs authorities.
In addition, it opposed many registrations of worldwide
trademarks (which appeared very similar to its trademarks), filed by individuals or companies operating in thesame sector.
The main tool developed by Brembo to counter the saleof non-original products is an “anti-fraud card” which allows customers to easily check if their purchase is really“Made in Brembo”. This anti-fraud card is delivered inside
a sealed bag in the packing of the product purchased andgives a unique identification code, which — once enteredon the website www.original.brembo.com together withthe card number, component type and country of purchase — allows its authenticity to be checked. If the check
fails to give a positive outcome, the purchaser is invited
to enter further information to enable the Group to startinvestigations about the origin of the counterfeit part. The
card also contains the quality control document, another
tool for confirming product originality, whilst an external
seal guarantees that the purchaser has received the product intact from the factory.
This tool has been supplemented by a further meansof certifying product authenticity that has been madeavailable to customers. This is the “Brembo Check” appwhich provides immediate confirmation of the product’s
originality by framing the unique QR Code on the label
applied to the purchased component or to the box. To
avoid tampering, the label is made following a printing
and application protocol that prevents its removal. Finally,
the QR Code can only be registered once, as an additional
protection for the buyer.
The anti-fraud card is currently available for the Brembo
High Performance and Brembo Racing lines, with reference
to the following products: Sports discs, Rally discs and GT
kits. For motorbikes, the initiative covers: calipers, discs,
brake/clutch cylinders and replacement levers.

over 30 thousand advertisements eliminated overall on
e-commerce platforms;
over 10 raids in China and Thailand;
over 1,500 units of counterfeit products seized in China;
over 500 domain name infringement cases resolved andover 70 domain names under monitoring;around 15 pending trademark oppositions worldwide.

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181

6. Synergies and Innovation

6.6 AWARDS FOR INNOVATIVE IDEAS

The contribution to innovation and the spirit of collaboration within the Group are important qualities. Therefore,
Brembo intends to reward its People, by rewarding ideasthat enable improvements and progress to be made interms of quality, process or product innovation, cost reduction, increased productivity and simplified processes.
Also in 2023, the Brembo Awards, the initiative that rewards the best ideas and projects on the theme of sustainability, innovation and excellence, were celebrated
with a digital event accessible by all Brembo People
around the world.

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Annual Sustainability Report 2023

The 28 finalist projects were presented during the event,and 14 prizes were awarded:•••

five awards in six categories and five special mention
awards in the Sustainability Awards (one won by a Polish team, one by a Spanish team, one by an Italian team,
one by a Danish team and one by an Indian team);seven awards in the Excellence Awards, for which therules changed in 2022 since the categories have been
eliminated and each site presents only its “Best Project”;
two Innovation Awards, both won by Italian teams.

6.6 Awards for Innovative Ideas

BREMBOEXCELLENCE AWARDS

Brembo Excellence Awards was created to promote ideas and projects for continuous improvement that arise
from the application of Lean Manufacturing principles
to any area and process of the Group’s plants. The competition is open to all employees of the plants who havedeveloped improvement ideas or projects individually orin teams. Ideas and projects refer to different processes
relating to Safety, Quality, Logistics, Maintenance andManufacturing.
In 2022, the rules and the awarding system were changed:
project categories were eliminated and each Plant is invited to only present its “Best Project” and no longer eight
different projects as before. In light of this change, in 2022
a total of 24 projects were presented and seven plants wereawarded, confirming the previous years’ excellent results interms of participation.

BREMBOINNOVATION AWARDSThe Innovation Awards have been established by Brembo
in order to recognise each year the most innovative ideas
relating to the Product and Process areas, with reference tothe systems and discs production.
These annual awards are also accompanied by the Brembo
Monthly Innovation Prize, which every month recognises
the best projects developed by Group employees. The evaluation criteria focus on innovative content, possible cost
reductions and project added value.
Among all the ideas that get recognised on a monthly basis, the award goes to the idea judged to be the best in
product category, and that voted as the best for process fora given year.
In 2023, 66 ideas were presented, comprising 52 productideas and 14 process ideas. Out of all those submitted,
awards were given to 60 ideas: 47 product ideas and 13
process ideas.

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6. Synergies and Innovation

BREMBOSUSTAINABILITY AWARDS“Thinking responsibly, acting concretely”: this is Brembo’s
approach to sustainability. As of 2019, the Brembo Sustainability Awards competition complements the well-established Brembo Excellence Awards and Brembo Innovation
Awards. This award is given to employees who come up
with the best ideas in areas such as sustainable development at every level of the organisation.
The categories in which it is possible to submit projects relate to topics linked to the ISO 26000 guidelines and to the
17 Sustainable Development Goals with a special focus on
People, Good Management Practices, Governance, Environment, Business Partners and Community Involvement andDevelopment.
In line with the previous editions , the 2022 edition of theBrembo Sustainability Awards — for which awards were
bestowed in 2023, met with excellent results in terms ofparticipation. 57 projects were submitted which, in addition to the 171 projects of the previous editions, witnessed
employees’ interest towards sustainability issues. A total of
178 participants were recorded (28% more than the previous edition). Environment and People are the categories forwhich the highest number of projects were presented. The
countries which submitted projects included Brazil, Mexico,
China, Italy, Poland, India, Czech Republic, Denmark, Spainand the United States.
The Brembo Sustainability Awards made use of the CSR
Ambassadors’ and CSR Champions’ contributions, thesebeing people nominated by each Brembo country andplant with the aim of inspiring and engaging all Brembo
People into CSR issues and to act as a bridge between the
Corporate HQ and the Group’s companies. They are the sustainability spokespeople, tasked with engaging all Brembo
personnel into adopting sustainable behaviours, as well aswith officially representing the Corporate HQ’s CSR GCF.
In addition to the five winners, five special mentions
awards were given to projects deemed worthy for the excellent results achieved, and the level of innovativeness, aswell as to the country that submitted most ideas.

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6.6 Awards for Innovative Ideas

Annual Sustainability Report 2023

185

ENVIRONMENT-11.2%EMISSIONS OF CO2 PER CAST TONNE*
COMPARED TO 2022

THINKING RESPONSIBLY,
ACTING CONCRETELY
The planet is all we have and its resources are not infinite.
Its protection is a priority for the Brembo Group,
which, through its strategies, operates responsibly
to reduce its impact wherever it is in the world.
* Scope 1 and market-based Scope 2 emissions generated by foundries / gross tonnes of molten cast iron and molten aluminium.

-9.5%EMISSIONS OF CO2PER UNIT OF
FINISHED PRODUCT**COMPARED TO 2022

75%

ELECTRICITY
COMING FROMRENEWABLE SOURCES** Scope 1 and market-based Scope 2 emissions generated by the pieces manufactured / total number of pieces manufactured.

7. Environment

7. ENVIRONMENT-11.2%

100%

52%

75

Emissions of CO2
per cast tonne73
compared to 2022

76

ISO 14001
environmentallycertified plants-9.5%

Emissions of CO2
per unit of finished product74
compared to 2022

ISO 50001
energy certified
plants75%

Electricity comingfrom renewablesources

7.1 AN INNOVATIVE AND RESPONSIBLE
BUSINESS MODEL 73747576
Faced with the weather and climate scenario of recent
years, marked by a constant increase in average temperature, reduction in rainfall frequency and increase in extreme phenomena, the urgent need to deal with climatechange is unquestionable. Luckily, there are already many
available solutions and institutions, investors, businesses
and the civil society are trying to adopt them. The aim is to
mitigate the climate crisis effects and proceed towards adevelopment model based on environmental sustainability and social equity.
As a global, industry-leading Group, Brembo has long sinceenunciated its responsible, sustainable business principles,and is gradually making them into a reality, by transforming its operating model – increasingly oriented towards energy efficiency, energy sources diversification and rational

73
74
75
76

188

use of water. This operating model is based on increasingly
strict, innovative requirements capable of anticipating future legislation, with the goal of adopting solutions that
may ensure industrial development while respecting theenvironment, minimising the environmental impact of its
processes and continuing to create value for its stakeholders. It is thus a matter of balancing between financial considerations and social and environmental responsibility.
Brembo’s greenhouse gas emissions are chiefly connectedwith the functioning of production facilities. It is for thisreason that environment-related actions aim, on the one
hand, at reducing atmospheric emissions through an increased process efficiency, on the other, at gradually increasing the use of electrical energy from renewable sources.
The Group’s tangible commitment is further proved by the

Scope 1 and market-based Scope 2 emissions generated by foundries / gross tonnes of molten cast iron and molten aluminium.
Scope 1 and market-based Scope 2 emissions generated by the pieces manufactured / total number of pieces manufactured.
The plants falling within the ISO 14001 certification scope are operating industrial plants or plants that have been part of the Group for at least two years.
The plants falling within the ISO 50001 certification scope are operating industrial plants or plants that have been part of the Group for at least two years
and with energy consumption exceeding 5,000 GJ.

Annual Sustainability Report 2023

7.1 An Innovative and Responsible Business Model

fact that these elements, as of 2018, form part of the performance assessment scheme for each of the Group‘s managers. In addition to the direct involvement of top management, the journey towards a more sustainable model isalso based on spreading a robust culture of sustainability
throughout the Brembo community, with the aim of fostering the creation of innovative ideas and the possibility fortaking advantage of all new stimuli to achieve increasingly
ambitious environmental sustainability objectives.
Brembo’s constant investment in research into innovative
solutions capable of reducing environmental impact of its
operations is thus a natural consequence of this approach.
For instance, assessments of whether to self-generate reduced-impact electricitycontinued in 2023, as did inquiries
into using hydrogen in replacement of natural gas in production processes.
In addition, in 2023 Brembo continued work on formulating an environmental and energy standard to be applied tothe processes of designing and purchasing new plant andmachinery and the construction of buildings.
Over the last years it has been clear that climate change
also has a direct impact on access to water. Therefore, theenvironmental protection process embarked on by Brembo
also includes rational use of water.
In this area the propensity for technological innovation,
along with awareness of the water resource’s value, has led
the Group to identify and gradually introduce new production processes entailing a more efficient water use aiming atlimiting its use, eliminating waste and avoiding any possible
form of contamination. In particular, Brembo’s commitment
is most evident in the plants located in highly water-stressed
locations due to the climatic and hydrogeological conditionsof the area and for which important performance improvement projects were implemented during 2023.
In keeping with the last year, 2023 as well was characterised by the constant increase in requests from all stakeholders for information on environmental impacts. These
stakeholders include customers, with many of whom joint
activities have been launched to identify solutions that can
reduce environmental impact, first and foremost the impact of climate change. The areas of discussion and collaboration with customers concern many other areas including energy efficiency, renewable energy supply, circular
economy and more generally all those aimed at achieving
a reduction in the environmental impact of products froma life-cycle perspective. The Brembo Group proved to beready and prepared to respond in a concrete manner tothe growing demands in the ESG field, in particular thoserelating to environmental issues, which have become fundamental and essential elements of the business. In fact,
the development and implementation of a strategy aimed
at pursuing “Environmental and Energy Excellence” is underway, the ultimate goal of which being to achieve thelowest environmental impact and greatest energy efficiency technologically achievable.
Brembo’s environmental strategy, in terms of values, vision and mission, is described and made available in theGroup’s Environment and Energy Policy, where the Group
states its commitment to full endorsement of Sustainable Development principles in order to minimise the useof non-renewable resources, and keep the use of renewable ones within the limits of their regeneration capability.
Brembo intends to contribute to ensuring that the use of
the environmental resources required to meet its current
needs is managed responsibly, so as not to harm and deplete availability for future generations.
In order to ensure transparency and provide customers
and investors with accurate information about these aspects, Brembo has taken part in the CDP Climate Change
questionnaire since 2011. This independent organisation
promotes synergies between the financial community andthe business world, in order to monitor and advocate forcommitment to limiting climate change and ensuring responsible and sustainable use of water resources.
Brembo has progressively extended this GHG emissions
monitoring and reporting activity over the years, making
it possible to include all Group sites as of 2015. This commitment has allowed not only to paint a full mapping ofgreenhouse gas emissions deriving from both energy andfuel consumption during production processes and fromthe Group’s purchasing and logistic activities, but also to
identify the main mitigation actions implemented to reduce the environmental impact. Furthermore, the measures will also help to support the ambition to achieve
climate-changing emissions neutrality. Lastly, since 2016
Brembo has extended its reporting to water resources as
well, taking part in the CDP Water Security questionnaire,
identifying improvement measures with particular regard
to the plants located in geographical areas where there isa greater water risk.
In confirming this commitment, in 2023 CDP named Brembo as one of the world’s best companies in terms of commitment both against climate change and to water management, obtaining an A- score in both categories.

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7. Environment

7.2 THE SYSTEM FOR EFFECTIVE
MANAGEMENT OF ENVIRONMENTAL(ISO 14001) AND ENERGY (ISO 50001)
IMPACTSIn light of the climate-related scenario of the last years, theregulatory pressure and the growing interest from stakeholders — communities, governments, customers, investors — towards the environmental and sustainability-related performance, Brembo has developed and maintains an
up-to-date Environmental Management System compliant
with the ISO 14001:2015 standard in order to maintain an
optimal management of all the aspects relating to its environmental impacts. Thanks to this System, the Group is able
to comply with the constantly evolving regulatory requirements and implement tools aimed at minimising its impact
and its environmental risks. Moreover, since 2019 the Management System has also incorporated the requirements ofstandard ISO 50001: 2018 relating to energy management.
Brembo kept 100%77 of its plants ISO 14001-certified in 2023.
The programme aimed at extending the ISO 50001 certification relating to energy management also continued. The
project, which started in 2019, provides for the gradual inclusion of all sites relevant for the Group in terms of energy
consumption as part of the ISO 50001 corporate certification.
The following plants were subjected to the ISO 50001 certification audit in 2023: disc processing plant in Mapello (Italy),
disc processing plant in Betim (Brazil), cast iron foundry in
Nanjing (China), disc processing plant in Nanjing (China),
cast iron foundry in Langfang (China), disc processing plantin Langfang (China), aluminium foundry and processing
plant in Nanjing (China). In 2023, 52% of the plants were certified according to the ISO 50001 standard78.
Both certifications, ISO 14001 and ISO 50001, are in linewith Brembo’s “Corporate” scheme: these are certifications
that see all the plants included linked by common operating methods and control systems, and accordingly a single
certificate is issued for the Group accompanied by “satellite” certificates relating to the plants. Moreover, this Management System undergoes a voluntary annual audit byindependent third parties to ensure its full compliance withinternational standards ISO 14001 and ISO 50001.
The management system is based on legislative complianceand the “Risk Oriented” approach, going beyond the traditional criterium limited to the assessment of environmental impacts. To encourage plants in the application of theseprinciples, in 2021 all plants began using the ORME (Obligation and Risk Management for Environment and Energy) IT

platform, developed by E&E during 2020. Integrated in thesame platform as b-Sustainable, ORME supports the sites inmanaging the Obligation and Risk Management processes.
The first consists of a set of activities to ensure compliancewith all mandatory and voluntary requirements, while thesecond is aimed at identifying, estimating and managing
the environmental risks and opportunities generated by the
impacts of production activities.
Lastly, in addition to investments in technology and services,the human factor has also a decisive role in ensuring the effective protection of the environment in everyday corporate
activities. Accordingly, within the framework of its Management System, Brembo invests in training activities designed
to circulate useful indications on how to handle the main environmental aspects and use the tools introduced for manage them, including specific technical training for employeeson the front lines, which consists of webinars, conventions
and seminars promoted by the various national and international organisations (such as the CDP) and specific induction programmes designed for newly hired employees.

7,000

over
hours of training provided to employeeson environmental and energy issues

In 2023, as well as standard training, about 7,000 hours overall of training on environmental and energy issues were
provided across the Group’s sites.
In particular, it should be noted that the course composed offour e-learning training modules on the requirements set in
Brembo procedures for managing water, atmospheric emissions, waste and climate-altering gas emissions, was provided to all Brembo Group technical personnel who may havean impact on such issues in various capacities. “INFINITY”
was another relevant project. It is an e-learning training pathdeveloped in partnership with research centres, KilometroRosso and the international academic world, aimed at developing skills in circular economy relating to the manufacturing sector.

77 The plants falling within the ISO 14001 certification scope are operating industrial plants or plants that have been part of the Group for at least two years
78 The plants falling within the ISO 50001 certification scope are operating industrial plants or plants that have been part of the Group for at least two years
and with energy consumption exceeding 5,000 GJ

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7.3 Energy Consumption

7.3 ENERGY CONSUMPTION

The main source of emissions, energy consumption is also
the factor on which Brembo shall focus its commitment toachieve its net zero operating model target. Therefore, inline with the indications of the global scientific community, Brembo’s policy is to maximise efficiency in the use ofenergy while reducing consumption wherever possible andkeeping emissions to a minimum. In order to minimise theenvironmental impact and improve energy performance,
the strategy is aimed at reducing energy intensity andCO2equivalent emissions due to production processes,
while ensuring economically sustainable operations.

To simplify the approach to managing environmental andenergy matters at the Group’s facilities, revision of the procedures for defining, analysing and monitoring energy performance indicators, began in 2022, continued in 2023.

The improvement in energy performance is also intended
to maintain and strengthen the Group’s global competitiveness. Energy efficiency is therefore an integral part ofBrembo’s production system as it has an impact on theperformance of production activities.

The energy quota from renewable sources which theGroup procured rose from 69% in 2022 to 75% in 2023. This
result was achieved thanks to the purchase of renewableenergy certificates (Guarantee of Origin, I-RECs, RECs, etc.),
PPAs (Power Purchasing Agreements) and other contractual agreements.

In order to reach these objectives, and in keeping with what
has been set out in its Environment and Energy Policy, revised in 2023, the Group has provided itself with an Energy
Management System compliant with ISO 50001:2018, extending it gradually to an increasing number of sites.
The key points of the Group’s energy-related strategy are:
•
•
•
•

•
•
•
•
•

measurement and reporting of site energy uses andCO2equivalent emissions;
audit and review of the performance of the Energy Management System;
setting of targets for reducing energy intensity andCO2equivalent emissions;
identification, implementation and spreading of energy efficiency improvement projects, through a comparative analysis of the effects on performance;
intelligent system planning aimed at minimising energy waste;
promotion of the development of digital systems serving energy management;
constant research and evaluation of new solutions forenergy self-production;
constant commitment to in-house research into new
production processes and optimisation of existing ones;
constant search for opportunities for heat recovery andother forms of energy output from the processes.

When choosing energy sources, Brembo favours renewableenergy sources over fossil fuels, on the one hand by pursuing in 2023 as well the Group’s commitment relating to
renewable energy purchases, on the other by increasing its
self-production capacity, including through the installationof photovoltaic panels.

100% renewable electricity at Italian sites was maintainedin 2023 as well through the purchase of guarantee of origin
certificates and electricity generated by photovoltaic systems installed at the Sellero production facility.
Even the Mexican and Brazilian plants kept 100% of theirelectricity sourced from renewables for the year 2023.
In the other countries in which Brembo operates, theGroup increased its percentage of electricity from renewable sources: in China it went from 44% in 2022 to 53%
in 2023, in Czech Republic from 29% to 43% and in Poland from 85% to 86%. Finally, Brembo increased the purchase of REC certificates in the US for its consumption in
the country from 24% to 48%. In India, as of 2021 Brembo
purchases renewable source electricity from photovoltaic
systems installed at the Pune site (plant with a capacity of
900 kWp79) In 2023, renewable energy accounted for 7%of the consumption in the country. Lastly, Spain’s share of
renewable energy was 93%.
Brembo currently self-produces electricity from photovoltaic systems at its Italian sites in Stezzano and Curno. Additional energy self-generation capacity continued to beinstalled in 2023 at the Mapello and Curno Italian sites(3,807 kWp).

79 kWp, i.e. the maximum electric power that the photovoltaic system is capable of generating in standard temperature conditions of 25° C with incident
solar radiation of 1,000 Watt/m2.

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7. Environment

Starting from 2024, Brembo is committed to increasing theshare of self-produced energy in other geographies by installing photovoltaic panels on the roofs of all new buildings.
With regard to energy efficiency, the actions taken to achievethese goals include, for example, adopting advanced monitoring systems (B.E.P. — Brembo Energy Platform), interconnected with the factory’s main utilities according to asmart factory approach, replacing obsolete systems withothers using more efficient technologies, reducing waste(e.g., the search for and reduction of compressed air leakages), automatically shutting down systems or parts ofsystems during unproductive periods), heat recovery (forinstance, from compressors’ cooling circuits).
The promotion of energy saving, which is reflected in therational use of energy and hence in reduced consumption,
is a topic that involves all the Group’s operating units,
which were asked to help achieve, each with a specifictarget, Brembo’s energy efficiency objective set for 2023
at 2.70% (calculated as contribution from improvement
actions achieved thanks to energy efficiency projects compared to previous year’s consumption).
The 200 projects developed in 2023 generated an overall
energy saving of 147,843 GJ, equal to 22,551 tonnes ofCO2equivalent. This objective has been largely exceeded,with a 3.48% result especially thanks to the activities aimed at optimising the foundries’ production processes.

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The energy consumption optimisation measures have produced material savings and reduced costs significantly, bothin the Group’s older plants built with previous-generation
technology, and in the more recently constructed plants
which, built with high energy efficiency, cutting-edge technologies, have focused on the management procedures
connected with use of electricity and natural gas with reference to general, auxiliary and processing technical systems.
To further strengthen the collection, monitoring and sharing of energy efficiency projects at the Group’s various
sites, Brembo uses the Energy Efficiency Projects (EEP)
platform, released in 2022. In line with the goals for digitalisation of company processes, it enables to rely on aconstantly up-to-date view of all energy efficiency projects
developed at the Group’s various sites, while also facilitating sharing and circulation of such projects.

3.48%

energy consumption reduction
compared to 2022 thanks
to energy efficiency initiatives

71%

about
contribution of cast ironand aluminium foundries to Group’s
total energy efficiency in 2023

7.3 Energy Consumption

SBS HEAT RECOVERY – BREMBO SUSTAINABILITY AWARDS 2022
In 2023, the “Brembo SustainabilityAwards 2022” was awarded to the“SBS Heat Recovery” project carriedout at the SBS Friction production
plant in Denmark.
The aim of the project is to recover
the heat coming from the production
processes, to heat premises during

the winter season, thus reducing theconsumption of fossil fuels. The recovery system:

•

•

•

exploits the heat generated by thecooling of production machines,
allowing production and office environments to be heated against
a reduction in the consumption ofnatural gas and related GHG emissions (up to 85%);
it is scalable and applicable acrossOperations;
it is the first example in the Groupof usage of a heat pump with CO2natural coolant with minimal
heating potential (GWP).

ANALYSIS OF MAIN MEASURES TO REDUCE ENERGY CONSUMPTION AT GLOBAL LEVELAREA OF INTERVENTION

ENERGY CONSUMPTION REDUCTION (GJ)

ESTIMATE OF CO2eq
TONNES AVOIDEDLighting system optimisation (installation of LED lamps in offices
and production departments)*

4,150

722

Compressed air system optimisation(replacement of compressors, leak detection and repair,
optimised use during production processes) *25,932

4,598

Replacement of processing systems with more efficient technology**

5,769

841

103,121

15,257

8,870

1,132

0

0

147,843

22,551

General production process optimisation**
Optimisation of general technical equipment management**
Installation of photovoltaic plant*
TOTAL* Category of intervention including the reduction of electricity, thus impacting on Scope 2 emissions.

** Category of intervention including the reduction of both electricity and natural gas, thus impacting on Scope 1 and Scope 2 emissions.

Overall, in 2023 Brembo’s energy consumption amounted
to just above 5.5 million GJ, with a 6% increase compared
to 2022, as a result of a balance of resumption and growthof production activities — previously affected by production stoppages due to the pandemic — and energy efficiency projects implemented.
This consumption is predominantly in the form of electricalenergy — which accounts for 73% of total energy consumption —, equivalent to more than 4 million GJ. Electrical energy
is primarily used by the cast iron melting furnaces and secondarily by the mechanical processing systems and compressed
air production systems used in the production processes. Natural gas consumption, primarily used in the aluminium melting processes, is equivalent to more than 1 million GJ.

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7. Environment

ANNUAL ENERGY CONSUMPTION BROKEN DOWN BY SOURCE (GJ)*
2021

2022

2023

DIRECT CONSUMPTION

1,359,479

1,468,055

1,468,430

Natural Gas

1,066,140

1,125,999

1,060,903

Diesel21,79324,186

21,754

Petrol

4,837

6,623

9,778

LPG

31,93736,20887,034

Coke

205,759

253,134

281,463

Anthracite

27,716

19,9304,779

Self-produced electricity (photovoltaic)**

1,297

1,975

2,719

INDIRECT CONSUMPTION

3,888,026

3,816,882

4,116,678

Electrical energy

3,353,182

3,788,112

4,096,542

from non-renewable sources

1,565,949

1,171,129

1,015,811

from renewable sources***

1,787,233

2,616,983

3,080,731

34,844

28,77020,136

4,747,505

5,284,937

5,585,108

District heating
TOTAL* 	The calculation was made using the conversion factors published by the UK Department for Environment Food & Rural Affairs and Department for
Business, Energy & Industrial Strategy.
** The self-produced energy quota and sent to network is not material.
***	Electrical energy from renewable sources purchased through renewable energy certificates (Guarantee of Origin, I-RECs, RECs, etc.), PPAs (Power
Purchasing Agreements) and other contractual agreements.

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7.4 Greenhouse Gas Emissions

7.4 GREENHOUSE GAS EMISSIONS

Brembo’s policy on climate change has included, since2015, increasingly challenging objectives consistent withthe commitments set by the United Nations during the
COP21 in Paris in order to combat climate change effects.
To win this challenge Brembo implemented a strategy
structured into a series of actions aimed at achieving
short-, medium- and long-term objectives to cut its greenhouse gas emissions.
In detail , the Group set an annual sustainability goal
defined as a percentage of emissions avoided due to improvements, including efficient use of any form of energy
and the use of renewable energy, compared with the previous year’s emission levels. In 2023, the target of reducing CO2eq emissions thanks to the improvement actions,compared to the previous year’s emissions, set at 20%,
was reached and exceeded with a result of about 31.7%.
This was achieved thanks to the energy efficiency projects
implemented in all the Group’s plants and the increasein the share of renewable energy purchased in Poland,
Czech Republic, US, India and China.

Reduction of emissions
Scope 1 & 2 marked-based obtained
thanks to improvement actions≥20%

BY 2030•

Reducing absolute (market-based Scope 2)
indirect emissions by 100%•

100% use of electricity coming fromrenewable sources•

Reducing absolute Scope 1 and market-based
Scope 2 emissions by 42% compared to 2020•

Reducing absolute Scope 3 emissions by 42%
compared to 2020

BY 2040•

Reducing absolute Scope 1 and market-based
Scope 2 emissions by l 90% compared to 2020•

Reducing absolute Scope 3 emissions by 90%
compared to 2020•

Neutralising absolute emissions by a maximumof 10% compared to 2020

Scope 1 & Scope 2 market-based
for the previous year

-11.2%

Nel 2021 Brembo ha fissato i propri obiettivi di medio e dilungo periodo che includono tutte le fabbriche.

*Scope 1 and market-based Scope 2 emissions,generated by foundries / gross tonnesof molten cast iron and molten aluminium

In 2021, the Group set its medium- and long-term objectives, relating to all factories. The Group is committed toreducing its Scope 1, market-based Scope 2 and Scope 3
emissions by at least 4.2% year-on-year, with the ultimate
goal of reaching Net Zero emissions by 2040. Objectives are
inspired by the SBTi (Science-Based Targets initiative) Net
Zero criteria for keeping the global temperature increase
well below 1.5°C. Brembo intends to submit its targets forvalidation to the SBTi.

-9.5%

reduction of CO2 emissions
per cast tonne* rispetto al 2022

reduction of CO2 emissions
per unit of finished product**compared to 2022**Scope 1 and market-based Scope 2 emissions,generated by finished products / total numberof pieces manufactured

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7. Environment

ROAD MAP TO NET ZEROTo achieve Net Zero emissions, Brembo has defined a Road Map that is
subject to continuous refinement inaccordance with technical, technological and market developments. The
Road Map also includes the supply of
renewable energy, both self-produced
and purchased, to reach a share of
70% of consumption in 2025 and100% in 2030.

Further areas of action are represented
by the increase in the use of secondary
raw materials within products, transport optimisation, energy efficiency
and technological innovation.
Great commitment is expected in the
involvement of the supply chain sothat each supplier reduces its Scope 1
and Scope 2 emissions.

Scope 1, market-based Scope 2 and Scope 3 emissions
generated by Brembo’s manufacturing activities in 2023
amounted to slightly more than 2,476,000 tonnes of CO2eq. In 2023, Scope 1 and market-based 2 emissions, equal
to 280,887 tonnes of CO2eq, decreased by 2.8% compared
to 2022, when they amounted to 288,848 tonnes of CO2eq.
This result was achieved thanks to energy efficiency projects
totalling 22,550 tons of CO2eq and to the purchase of renewable energy solutions equal to 543,571 tons of CO2eq. According to this classification, the most relevant share of Brembo’s
emissions is tied to the work of its suppliers that produce
and transport machinery and components for Brembo.

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Annual Sustainability Report 2023

To ensure that the defined strategy is implemented and consistent
with the objectives set, the Environment and Energy Area coordinates aworking group that involves all thecompany functions concerned andwhich in different ways collaborate
and carry out the improvement initiatives aimed at reducing CO2eq
emissions.

Every year, Brembo subjects its GHG emissions inventory
and related emissions calculation methodology to limited
assurance by a third party. In particular, for 2023 the GHG
emissions inventory and related emissions calculation
methodology will be subject to limited assurance in early2024 according to the criteria set out in the standard ISAE
3410, revised by Deloitte & Touche S.p.A.
In 2023, in view of ongoing improvement, Brembo reviewed its method to calculate several categories of Scope
3 emissions, as illustrated in greater detail in the notes inthe table.

7.4 Greenhouse Gas Emissions

GREENHOUSE GAS EMISSIONS BY SCOPE (T CO2EQ)1
20212

2022

2023

SCOPE 189,454

100,126

106,461

Emissions from production processes and heating systems

84,141

93,639100,065

3,801

4,319

4,293

1,512

2,168

2,103

254,785

188,722

174,426

Market based

254,785

188,722

174,426

Location based

478,342

540,467

597,556

GHG PROTOCOLCATEGORY

1,537,590

1,937,720

2,195,728

Emissions generated by suppliers to produce
materials and/or services for Brembo5

1

1,032,620

1,293,902

1,621,326

Emissions generated by the purchaseof hardware, machinery and equipment

2

144,909

188,410130,650

Emissions due to the energy lost through power
distribution and trasmission6

388,671

83,507

83,859Emissions due to product transport within theGroup and product distribution logistics tocustomers paid by Brembo7

463,487

76,10145,048Emissions due to waste disposal and transport7,8

5

52,09368,174

72,847

Emissions due to business trips7,9

6

652

1,751

3,704

Emissions due to employees commuting between
home and workplace7

737,766

40,67728,368Emissions due to product distribution logistics tocustomers paid by customers7

979,053

142,588

172,301

38,33942,61037,625

1,881,829

2,226,568

2,476,615

Emissions from company vehicles and other fuels
Emissions from leaks of coolants for air-conditioning systems

3

SCOPE 24

Indirect emissions due to power consumption and district heating

SCOPE 3Emissions due to equity investments
Total Scope 1, (MB) 2 and 3 emissions
1 The calculation of the CO2 equivalent emissions (which includes CO2,
CH4, NO2, and HFC emissions when present), was carried out in accordance with the indications of the GHG Protocol. The calculation was carriedout using the emission factors published by: • AIB (Association of Issuing
Bodies), • IEA (International Energy Agency), • UK Department for Environment Food & Rural Affairs and Department for Business, Energy & Industrial Strategy, • GHG Protocol, • Eurostat, • EPA (Environmental Protection
Agency), • Ecoinv.
2	2021 values have been recalculated to include the sites of J.Juan, a company acquired at the end of 2021, in accordance with the indications of the
GHG Protocol.
3	The figure includes the quantities of coolants dispersed into the atmosphere and reported in the special registers when air conditioning systems
are refilled periodically. In the absence of such a record or other evidenceof gas refills carried out during the year, all the gas contained in the air
conditioning systems is considered to be dispersed into the atmosphere— as a precautionary measure.
4	The overall Scope 2 emissions take into account the total emissions valued
using the market-based method.
5	The calculation methodology for this category was revised in 2023 to also

include the emissions of the whole supply chain, in accordance with theindications of the GHG Protocol. The previous years’ values have been recalculated using a similar methodology. For aluminium suppliers, calculations are based on current year’s data. For the other suppliers, calculations
took into account the previous year’s data.
6	The calculation methodology for this category was revised in 2023 to also
include the WTT emissions relating to electricity, district heating and fuels,in accordance with the indications of the GHG Protocol. The previous years’values have been recalculated using the same methodology.
7	To calculate Scope 3 emissions, and in particular for categories 4, 5, 6, 7 and
9 of the GHG Protocol, distances travelled have been estimated on the basisof the departure and destination information available. In addition, for categories 4 and 9, in the absence of specific information, the weight of goods
transported is estimated on the basis of the load of the vehicle used.
8	The calculation methodology for this category was revised in 2023 to also
include the emissions due to waste disposal, in accordance with the indications of the GHG Protocol. The previous years’ values have been recalculated using the same methodology.
9	For the calculation of this category's emissions, only employee air travel isconsidered. As of 2023, travel by train are also taken into account.

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7. Environment

FROM PRIMARY TO SECONDARY ALUMINIUM

produced with renewable energy;
purchase of “hybrid” alloys madeof a growing amount of renewablealuminium;
the production of calipers madeentirely from recycled aluminium.

Producing a brake caliper using secondary aluminium to replace, in wholeor partly, the primary one while ensuring performance, quality and aesthetic
criteria is one of key goals in the fieldof sustainability.
The development of the calipers of to-morrow, fully made of recycled aluminium, will allow to reduce CO2e emissions
by about 80% in the next decade compared to the current emissions. The expected result will be achieved througha series of subsequent steps including:• the gradual increase of aluminium

SCOPE 1SCOPE 2SCOPE 3

Climate-changing emissions generated directly by Brembo come fromplants, assets and vehicles operated
directly by Brembo. This scope includes emissions from the combustion of fossil fuels in melting furnaces,
leakage of coolants in air conditioning
systems or use of fossil fuels in thecompany fleet.

Indirect emissions of greenhousegases resulting from the generationof electricity purchased by Brembo,
as well as the heating of water/steam
procured by the Group through district heating systems. With these purchases Brembo indirectly contributes
to the emissions generated by electricity or heath suppliers.

Emissions that are not included in theprevious scopes but linked to Brembo’s value chain. This scope includes
emissions from Brembo product distribution and handling among plants
and towards customers, personnel’scommuting from home to workplaceor business trips, the purchase of hardware, machinery and equipment, andemissions generated by suppliers formaterials and/or services purchased
by Brembo.

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7. Environment

7.5 ATMOSPHERIC POLLUTINGEMISSIONS

Pollutant emissions that derive from Brembo's production
may have direct negative effects on the health of communities adjacent to facilities or give rise to problems also forthe area's flora and fauna. For these reasons, the Environment and Energy Management System implemented by
Brembo has introduced requirements common to all theGroup's plants aimed at containing the environmental risk
well below the emission limits imposed by the legislationof the Countries in which it operates.
The control of quality parameters for atmospheric emissions is required by all legislations in force in the Countries where Brembo plants reside, although with different
limits from country to country. Each plant has establishedappropriate monitoring plans for its emissions with theultimate aim of limiting the emissions generated by its
production processes to the technological limit, including
odorous ones, an aspect not normally covered by legislative requirements.
The typical parameters subject to sampling and analysis arethose emitted by melting processes (such as powders, NOx
and SOx) and those generated by mechanical processing
and painting processes (powders and VOCs), whose emission values are governed by local legislation. To contain therisk of pollution, Brembo has set internal requirements thateach emission point be equipped with abatement systems
capable of ensuring that atmospheric emissions are 60%
lower than the limit set by local legislation.

EMISSIONS OF HARMFUL SUBSTANCES (t)*
2021

2022

2023

Nitrogen oxides (NOx)

66.32

82.68

186.22Sulphur oxides (SOx)100.0447.37

180.53

Persistent organic pollutants (POP)

0.003

0.03

0

Volatile organic compounds (VOC)

108.32

77.73

96.88

Hazardous pollutants

1.37

1.82

2.32

Fine particulates (PM)177.64274.41320.31

Carbon monoxide (CO)246.59370.581,357.84* The values shown are based on precise measurements made in plants that are subject to regular or ongoing spot checks. Each plant’s emissions is calculated
based on these precise measurements, since the concentration of harmful substances, the mass flow and the operating time of the plant are already known.

In the same way it monitors pollutants, Brembo also monitors the quantity of coolants (HFC and HCFC) released into
the atmosphere, calculating the relevant CO2eq impact.
In 2023, approximately 1.21 tonnes of gases, of which 0.03
tonnes of freon 22 gas (R-22), were dispersed into the atmosphere. The figure includes the quantities of coolants

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Annual Sustainability Report 2023

dispersed into the atmosphere and reported in the special registers when air conditioning systems are refilledperiodically. In the absence of such a record or other evidence of gas refills carried out during the year, all the gas
contained in the air conditioning systems is considered tobe dispersed into the atmosphere — as a precautionary
measure.

7.6 Management and Useof Water Resources

7.6 M
 ANAGEMENT AND USE
OF WATER RESOURCES

Climate change and particularly the increase in drought
periods and related extreme weather phenomena affectthe availability of fresh water, an essential resource for thesurvival of man and any economic sector, especially in geographical areas characterised by scarce water availability. The challenge faced by the institutions and companies
that use the most water will thus be to manage water use
fairly, so that it does not become a factor of disruptionof business or harm to the natural cycles of ecosystems
or social inequality. For this reason, the 2030 Agenda for
Sustainable Development recognises the importance ofwater, mainly in its Goals 6 and 14 but also in all the other
Goals, linked to water directly or indirectly.
Brembo, whose production processes require water resources quantifiable as approximately 1,620 Ml, has defined a strategy acting in multiple directions: promoting
the rational use of water, by gradually reducing its use in
its production processes, and fostering the minimisationof possible pollutants that could have a negative impact
on the environment, as well as the supply from alternative sources such as the recovery from other processes.
In particular, Brembo uses water for cooling its plants,
melting furnaces, surface treatments and the preparationof waste coolant emulsions – specific 7-10% oil emulsions
needed for cooling and chip evacuation in mechanicalprocessing. Brembo's manufacturing activity may thus
generate material impacts in terms of the quantity of water used, contributing to depletion of the resource in areas
with limited availability or also in terms of water contamination, albeit to a less significant degree.
With regard to water performance, in 2023 a total of about
1,620 Ml of water were taken, a slight increase comparedto the trend of recent years. The overall figure is mainly
affected by the increase in production volumes recordedat almost all the Group's plants.
The water mains still constitutes the main source of supply (approximately 73%) which not only ensures suitable
quality levels, but also a reliably constant supply over time.

With reference to waste water, nearly all of it is destined forthe local water consortium sewers to which the sites arelinked. Only a tiny fraction (less than 1%) of waste water is
destined to other types of release (e.g., released into surface water bodies or in the subsoil). In all cases waste water
is subject to prior verification to ensure that the relevant
local legal specifications on acceptability are met.
Brembo's Environment and Energy Management System
concerns not only energy consumption, but also wateruse. Within the system adopted by Brembo, the Water
Management procedure sets requirements and restrictions for ensuring rational use of the resource and protection against all possible accidental contamination.
The requirements defined are binding on all Brembo facilities, thus ensuring the procedure is uniformly applied.
In the specific case of the risk of contamination of environmental matrices due to water discharge, the procedure's requirements are equally stringent: the limits tobe observed are up to 60% lower than those set by local
regulations.
Accordingly, all sites are required to take every appropriate action to ensure that the concentration of pollutantsin discharges remains consistently below this limit overtime, for example by using products or substances with alesser impact or discharge water treatment technologies.
Within the Management System, each plant carries out arisk and opportunities assessment for each process andproduction phase that has an impact on water resources.
The outcome of this analysis leads — for the areas identified as at high risk or with relevant opportunities — tomitigation or other actions that may help seize any opportunities. In parallel to the analysis, Brembo runs a yearlycompany-wide risk evaluation aimed at determining theexposure, for each Group’s site, to risk factors relating towater quality and availability in a specific area, specifically in current conditions and future scenarios. Such evaluation is conducted using the World Resource Institute’s(WRI) ACQUEDUCT methodology.

Annual Sustainability Report 2023

201

7. EnvironmentRESPONSIBLE WATER PROCUREMENT IDRICA

For Brembo, achieving maximum optimisation in water use is a much-needed result, especially in highly water-stressed areas.
This was the case of the plants in
Mexico, where severe drought maderationing in water distribution necessary in 2022 and 2023. In responseto this issue, Brembo launched at thecast iron foundry in Escobedo (Mexico) a water reuse project in which further chemical and physical processing
by Brembo allows discharged water
to be used in the municipal purifier
instead of water from the aqueduct.
Since December 2023, the Escobedo
site has therefore been supplied withaqueduct water for civil uses only,
while water withdrawal due to pro-To enable increasingly accurate water reporting, and identify and reduce every source of waste, it was set the goal ofreaching 100% water flows monitoring capability by 2025
(water withdrawal, discharge and significant internal use)for every site in the Group. Such goal is aimed at identifying the sources of waste and abnormal consumption withrespect to internal or external benchmarks — for the different points of use — in order to highlight all the situations
where improvement actions can be introduced consistent
with the local contexts.
The Group completed at all production plants the installation of flowmeters at the entry points and will complete
the installation of measuring equipment at the exit points
at the recently acquired plants, as well as measuring equipment for significant internal use. A further development of
the project is the inclusion of water measurements within
the BEP (Brembo Energy Platform) monitoring platform
which — similarly to energy — will enable a constant202

Annual Sustainability Report 2023

duction processes, which amounts toabout 300 m3 per day, comes entirely
from purified wastewater.
During the year, Brembo finalised a
study aimed at identifying the priority
sites on which the same water recovery process will be implemented in the
coming years.

monitoring of consumption, which will be useful to identify
priority areas for intervention in order to optimise waterneeds and monitor each plant’s targets.
Simultaneously a programme aimed at increasing the involvement of the supply chain in order to better know andunderstand the impact on water generated by Brembo
outside its factories continued. Similarly to what happened
with gas emissions, a specific questionnaire sent to suppliers also documented water consumption along the entire
value chain.
During 2023, two accidental spill events were recorded,
one relating to a leak of a waste coolant emulsion at theOstrava plant (Czech Republic) and one relating to thewater used for the abatement of foundry fumes at theHomer plant (USA): both incidents were promptly intercepted and resolved, avoiding damage to the external environment.

7.6 Management and Useof Water Resources

WATER WITHDRAWAL (ML= MEGALITRES)
2021

2022

2023

ALL AREAS

WATER
STRESSEDAREAS

ALL AREAS

WATER
STRESSEDAREAS

ALL AREAS

WATER
STRESSEDAREASGROUNDWATER

481.510455.070431.820.00

Fresh water

481.510455.070431.82

0.00

0

0

0

0

0.00

0.00

967.29360.201,114.69

396.721188.90409.75967.29360.201,094.47

376.511174.10394.95

0

0

20.21

20.21

14.80

14.80

1,448.80

360.201,569.75

396.72

1620.72

409.75

Other types of water
THIRD-PARTY WATER RESOURCES

Fresh water
Other types of water
TOTAL

TOTAL THIRD-PARTY WATER WITHDRAWAL BY SOURCE - WATER STRESSED AREAS

Surface water-

274.75-297.082-309.60Groundwater

-

85.14

-

99.64

-

99.67

Produced water

-

0.31

-

0

-

0.48

-

360.20-396.72-409.75TOTAL

WATER DISCHARGE (ML= MEGALITRES)*
2021

2022

2023

ALL AREAS

WATER
STRESSEDAREAS

ALL AREAS

WATER
STRESSEDAREAS

ALL AREAS

WATER
STRESSED
AREAS

SURFACE WATER

0.00

0.00

0.00

0.00

0.00

0.00

Fresh water

0.00

0.00

0.00

0.00

0.00

0.00

Other types of water

0.00

0.00

0.00

0.00

0.00

0.00

GROUNDWATER

8.33

0.01

5.57

0.01

2.41

0.01

Fresh water

8.33

0.01

5.57

0.01

2.41

0.01

0

0

0

0

0.00

0.00

510.51173.57597.95173.50629.42166.87

Fresh water

380.72105.34515.78128.40524.93126.94

Other types of water

129.79

68.23

82.17

45.11

104.4939.93

518.84173.58603.52173.51631.84166.88Other types of water
THIRD-PARTY WATER RESOURCESTOTALAnnual Sustainability Report 2023

203

7. Environment

2021
ALL AREAS

2022
WATER
STRESSEDAREAS

ALL AREAS

2023
WATER
STRESSEDAREAS

ALL AREAS

WATER
STRESSED
AREAS

WATER DISCHARGE BY LEVEL OF PROCESSING*

Any processing

175.49201.57226.49Level of processing 1

15.67

20.49

28.38

Level of processing 2

53.49

131.16121.49Level of processing 3***287.50265.98275.02532.16619.20651.37TOTAL*	In the event of the absence or malfunction of measuring equipment on industrial discharge, the volume of water discharged is estimated on the basisof available data, such as the volume of water withdrawn, the water evaporated, water disposed of as waste, etc. Where civil water discharge figures are
not available, the volume discharged is estimated to be equal to the volume withdrawn.
**	Level of processing 1: aims at removing the solid substances which either deposit or float on top of the water.
Level of processing 2: aims at removing the substances and materials which remain suspended or are dissolved in the water.
Level of processing 3: aims at improving water quality before its disposal. This processing also includes removal processes for substances such as
heavy metals, nitrogen and phosphorous.
***	The figure includes the quantity of water recovered by the Pune (India) processing plant and entirely reused within the plant. For this reason, total water
discharged is not equal to the figure broken down by level of processing.

WATER CONSUMPTION (ML= MEGALITERS)

2021

TOTAL WATER CONSUMPTION

204

Annual Sustainability Report 2023

2022

2023

ALL AREAS

WATER
STRESSEDAREAS

ALL AREAS

WATER
STRESSEDAREAS

ALL AREAS

WATER
STRESSED
AREAS

929.96

186.62966.23223.21

988.88242.87

7.7 Waste Reduction

7.7 WASTE REDUCTION

The generation of hazardous and non-hazardous wastefrom industrial processes may result in pollution of thesoil, water or air and may have adverse consequences interms of altering the ecosystem, such as soil or water contamination due to possible leaching or accidental leaks,
or because of entrusting waste to third parties without
the required authorisation. To reduce and mitigate suchimpacts, as part of its Environment and Energy Management System Brembo has prepared a Waste Management
procedure in which it defined operating requirements inspired by available best practices to ensure responsible,
consistent management of these aspects at all Group
plants. For example, specific solutions are adopted for
temporary waste storage areas at plants, which must be
designed using systems that prevent the effects of atmospheric agents on the waste.

The above procedure encourages identification of every
possible opportunity for exploiting waste materials, which
in various cases may be sold to third parties or reused internally as secondary raw materials, or also disposed ofas waste. This reduces the need to extract raw materials
from the Earth, significantly reducing the overall environmental impact. Brembo is working on the subject withvarious projects concerning both the production process
and the product. With regard to the production process,the areas of intervention aim to reduce the amount ofwaste generated and to reuse scrap materials in the process. When it comes to products, one virtuous example
is the project on which Brembo is working to test its firstexperimental melting of aluminium alloy with increasing
secondary material content from both the market and thescrap internal recovery.

In addition, this procedure imposes requirements alsowith respect to management of the value chain, providing
for audits of suppliers responsible for transporting anddisposing of waste to ensure minimum precautions aretaken, even in geographical areas where the law permits
a looser approach.

In 2023 as well, various actions were taken to mitigate theenvironmental impacts generated during waste management and reduction processes. These include the use as aby-product of waste materials from the process of manufacturing carbon ceramic discs, the recovery of spent castiron foundry sands to make sand for use in the process ofcreating cores to replace virgin sand in cast iron foundries
or the reuse of incoming packaging materials to make fillers for outgoing packaging at the San Cugat (J.Juan) plantin Spain.

Another important focus of the procedure is circular economy criteria, with all plants urged to identify every possible opportunity to apply them. This is an aspect to which
Brembo has devoted a great deal of energy. The linear“take-make-dispose” economic model based on having access to only seemingly unlimited resources is increasingly
ill-adapted to Brembo’s environment, especially given theneed to access high quality raw materials with sustainable
costs, whilst being mindful of the environment. The very
nature of some of the production processes, such as castiron foundries, means that they are suitable as a model
for applying the "take-make-reuse" concept on which thecircular economy is based. The raw materials procured bya foundry are for the most part of secondary origin, resulting from machining process waste or from the product of
the ferrous scrap salvage chain. The progressive extensionof circularity to all production processes is an opportunitythat Brembo intends to seize in order to ensure a steadybusiness growth that is in balance with the environment.

In 2023, Brembo generated a total of about 505,000 tonnesof waste, a 9% increase on 2022 due to higher production
volumes. The distribution of hazardous waste remained
at 5% of total waste generated, in line with previous years.
The percentage of waste sent for disposal in dumps decreased and accounted for 12% of the total.

WITH REGARD TO WASTE MANAGEMENT,IN 2022 BREMBO DEFINED THE FOLLOWING TARGETS•

Reaching 90% of waste to be recovered by 2025•

Reaching 95% of waste to be recovered by 2030

Annual Sustainability Report 2023

205

7. Environment

WASTE BY TYPE AND PERCENTAGE ON TOTAL WASTE (t)

2022

2023

%

Foundry sands

197,235

216,897

42.99%

Iron chip and filings

151,737

161,798

32.07%

Dust from abatement plants

20,871

22,242

4.41%

Foundry slag

25,56529,369

5.82%

Waste emulsions

12,706

14,046

2.78%

Packaging materials

6,815

7,107

1.41%

Aluminium foams

3,854

3,046

0.60%

Acid/basic waste solutions

2,945

2,913

0.58%

Sludge

2,225

2,375

0.47%

213

200

0.04%

Waste not classified differently

36,781

44,551

8.83%

Total

460,947

504,544

2021

2022

2023

20,213

23,521

25,223of which: discharged

3,675

5,032

4,474

of which: reused

16,53818,48920,749Non-hazardous waste

375,939

437,427

479,320of which: discharged

55,04363,08256,479of which: reused

320,896374,354422,841

396,152

460,947

504,544of which: discharged

58,718

68,113

60,952of which: reused

337,434

392,834

443,590

Waste filter materials

WASTE GENERATED (t)Hazardous waste

Total

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Annual Sustainability Report 2023

7.8 Protection of Biodiversity

7.8 PROTECTION OF BIODIVERSITYIn December 2022, nearly 200 governments pledged to meet
ambitious goals and targets under the Kunming-Montreal
Global Biodiversity Framework to halt and reverse the lossof biodiversity and natural ecosystems by 2030. Businesses
are called upon to transparently monitor, assess and disclose their risks, dependencies and impacts on biodiversity
to ensure that businesses, society and nature live in harmony. The Group has always been committed to protecting the environment and ecosystems by minimising theimpacts of its operations.
In this context, Brembo has felt the need to act for theprotection of biodiversity, first and foremost by adopting amethodological approach to help protect it in the vicinityof its production plants. As a first step, Brembo, with thesupport of a specialist consultant, launched a sensitivity
analysis aimed at defining and applying a methodology
for screening the state of biodiversity in the geographicalareas where its manufacturing plants are located.

The screening activity aims to identify the level of sensitivity of the area in which the sites are located and determine those plants that may require intervention, defining
improvement, prevention and mitigation actions.
In particular, the spatial interactions between Brembo's
production sites and three variables related to the state ofbiodiversity in the surrounding geographical areas were analysed: land use category, species classified as threatened
according to the IUCN Red List and the presence of areasof ecological interest (including Natura 2000 sites, Ramsar
sites, protected natural areas according to local, national orinternational legislation). Based on these variables, a prioritisation of Brembo's sites was defined, identifying the production sites that are located in the most sensitive areasfrom the point of view of natural ecosystems and biodiversity. Based on these analyses, the Group will identify, overthe next few years, a plan of actions designed to reduceand mitigate its impacts on biodiversity.

Annual Sustainability Report 2023

207

LOCAL AREAS

3,675
ECONOMIC VALUE DISTRIBUTEDACTIVE LISTENING
Brembo pays great attention to the local areas
where it operates around the world and,through an active dialogue with all stakeholders,outlines paths for listening to the needs of communities
and forms partnerships through virtuous initiatives.

€ MILLION

OVER

5,000

UNIQUE BENEFICIARIESREACHED BY THE LAUNCHOF THE “HOUSE OF SMILE”
PROJECT

6

ACTION AREAS
FOR SOCIALPROJECTS

8. Local Areas

8. LOCAL AREAS
3,675€ million

Economic value
distributed

over

5,000

Unique beneficiaries
reached by the launch of the“House of Smile” project6

Action areas
for social projects

8.1 CREATING OPPORTUNITIESFOR LOCAL AREAS
In 2023, Brembo’s investment management policy continued in line with the guidelines followed to date, with theaim of strengthening the Group’s presence not only in Italy,
but also internationally.
Group’s total net investments undertaken in 2023 at all
operations amounted to €412,159 thousand, of which€368,426 thousand was invested in property, plant andequipment and €43,733 thousand in intangible assets.
The most significant investments were concentrated in
Italy (36.3%), North America (22.9%), Poland (19.7%) andChina (9.7%). With regard to investments in intangible
assets, development costs for 2023 amounted to €28,910
thousand (7.0% of the Group’s total net investments). In
the same period, increases in leased assets amounted to€20,731 thousand.
In 2023, Brembo’s investment management policy continued in line with the guidelines followed to date, withthe aim of strengthening the Group’s presence not onlyin Italy, but also internationally. Brembo has launched aninvestment plan of approximately €500 million to consolidate its global industrial footprint, particularly in Mexico,
China and Poland, where new plants are expected to bebuilt with a view to digital transformation and sustainability. In Mexico, Brembo is completing the expansion of its
plant specialising in the manufacturing of brake calipers

210

Annual Sustainability Report 2023

located in Escobedo, in the Nuevo León State. Once fully
operational, the plant will enable to double the Group’s
production capacity in the country. With regard to China,
Brembo’s plan calls for the expansion of the brake systemmanufacturing plant in Nanjing to strengthen its production capacity in the country. The investment also provides
for the renewal of the R&D centre within the said site,with the aim of creating an advanced centre supporting
the development of the new technologies required by the
Chinese market. Works began in the second half of 2023
and the project is expected to be completed by the end of2025. In Poland, Brembo decided to build another cast ironfoundry in Dąbrowa Górnicza. The investment will create
the Group’s most innovative foundry at global level, which
will be endowed with cutting-edge technology, also in thesustainability area. The first pouring of the foundry is expected in the first half of 2025.
These projects are in addition to the already announced
acquisition of the Italcementi property at Kilometro Rossoin Stezzano (Bergamo), which will allow Brembo to expand
its headquarters in Italy. The other investments in property,
plant and equipment made by the Group primarily related to purchases of plant, machinery and equipment to increase the level of production automation and constantly
improve the mix and quality of factories.

8.1 Creating Opportunities for Local Areas

Brembo represents a reliable partner for many businesses
in the supply industry, with which they can develop partnerships and grow over time. Therefore it has contributed to strengthening the entrepreneurial fabric in its value chain, creating a network of satellite companies thatguarantees additional employment and technological development. In fact, in 2023 much of the economic value
distributed by Brembo went towards remunerating andsupporting the system of businesses in the supply chains:

overall, the Group made purchases worth over €2,590 million. More than €681 million was distributed to Brembo
personnel in the form of salaries, variable remunerationand social security contributions.
The economic impact of the Group can also be measured
in its support for public spending through its contribution
to tax revenue and its dividends to Shareholders, thereby
encouraging further investments.

ECONOMIC VALUE GENERATED, DISTRIBUTED AND RETAINED (€ THOUSAND)
2021

2022

2023

80

Economic value generated

2,887,840

3,802,434

4,092,885

Economic value distributed

2,539,452

3,386,176

3,675,184

Suppliers*

1,828,581

2,458,975

2,590,809

Brembo People**

506,617616,180

681,620

Investors and lenders***

138,229

205,636

290,230

Public Administration

64,312

103,420

110,759

Gifts and sponsorships****

1,713

1,965

1,766

Economic value retained

348,388416,258

417,701*	The item “Suppliers” includes operating costs classified among raw material costs and other operating costs recognised in the consolidated
statement of income.
** The item “Brembo People” includes personnel expenses for employees and agency workers.
*** The item “Investors and lenders” includes interest expense, exchange gains and dividends paid in the year.
**** The item “Gifts and sponsorships” includes voluntary contributions for the community (including donations).

The economic value generated and distributed by theGroup had a particularly significant positive impact inthose areas characterised by levels of industrialisation andwealth distribution below the national average.
In recognition of the benefits produced by the presence ofhighly specialised manufacturing firms, in 2023 — as partof national policies designed to attract and support industrial innovation and development — the Group received
more than €29,316 in public grants, in the form of tax relief
and research grants.
Brembo has always been very conscious of the role it plays
within the country’s economic development. The Group’s
constant investments aim to maintain and increase em-

ployment development and meet the economic and social
needs of local communities.
FINANCIAL INVESTMENT CONTRIBUTION(€ THOUSAND)81
2023

CapEx

412,818,163

Amortisation

251,705,674

Share buybacks

8,164,000

Dividend distribution

92,876,000

Total

765,563,837

80 The economic value generated consists of revenue from contracts with customers, other revenues and income, income (expense) from non-financial
investments, exchange rate gains, interest income and interest income (expense) from investments.
81 In line with IAS 7 and financial reporting, the WEF indicator “Financial Investment Contribution” includes both total depreciation and amortisation andinvestments relating to property, plant and equipment and intangible assets.

Annual Sustainability Report 2023

211

8. Local Areas

CONTRIBUTION TO DEVELOPING THE LOCAL INTELLECTUAL CAPITAL

Investments and work opportunities created in local communities are not the only positive effects generated by
Brembo in the areas in question. Indeed, the Group deems
it even more important to foster the growth of the districts’ intellectual capital by offering its “know-how” as aresource for promoting local development through training and partnerships with various research and education
institutions.
Partnerships like those with the Milan Polytechnic, theRoyal Institute of Technology in Stockholm, the Universityof Padua and the University of Trento have made it possible to share Brembo’s legacy of expertise in materials,
braking systems, technology, and industrial fusion andmechanical processing procedures, while also allowing
the Group to develop highly innovative products with aview to open innovation that benefits both Brembo andthe local areas.
Out of the main initiatives that demonstrate Brembo’s keyrole in creating and promoting knowledge and innovation
on a local level, the most significant are as follows:

The development of the innovation
hub Kilometro Rosso
The Group was involved in the creation of Kilometro Rosso from the very start. Established on the outskirts of Bergamo, where Brembo has its roots, this district acts as acatalyst for various areas of excellence in the field of research, high-tech production and services for innovationin various sectors and areas of specialisation.
This knowledge hub aims to create a meeting point forbusinesses with a strong propensity for innovation, scientific institutions and R&D centres, with a view to promoting the sharing of specialist expertise among businesses
operating in various industries, considerably increasing
the ability of the people involved to generate product, process and service innovation.
Kilometro Rosso is now one of Italy’s main science parks,
accredited by the CENSIS 2009 report as one of Italy’s
top 10 outstanding initiatives for innovation. In addition
to the Group’s headquarters, within the park Brembo
has a mechatronics, sensor systems and mechanical Research Centre and the laboratories of Brembo SGL Carbon

212

Annual Sustainability Report 2023

Ceramic Brakes, a joint-venture set up between Brembo
and SGL Group.
For further information: www.kilometrorosso.com

Brembo Learning Program @PoliMI
In partnership with the Milan Polytechnic, as of 2014
Brembo set up the Brembo Learning Program @PoliMI.
This technical and scientific advanced education initiative
specialising in braking systems seeks to complement theacademic curriculum of Milan Polytechnic’s engineering
students.
The Programme includes a series of lessons and meetings,
at the University and at the Company premises, with the
involvement of Group managers and specialists who makeavailable to students the wealth of knowledge and knowhow, illustrating to the students of the Polytechnic who areabout to graduate how Brembo products are created, fromtheir conception to production, and Brembo’s evolution asa provider of digital solutions to encourage the adoption of
more agile and innovative processes.

The support to local technological
The Group’s partnerships with the world of education do
not focus solely on universities. In fact, it is important for
Brembo to develop a relationship with future generations
from secondary schools onwards, so as to guide and introduce the best talents to the mechanics industry. In thisregard, in 2023 the Group launched the “Job Talks together
for Students” project in Italy, involving the most representative secondary technical schools in which its offices arelocated: as part of this project, Brembo experts bring theirpersonal experience and group assessments are carriedout through business cases.
Students also have the opportunity to visit the Company’s
production departments and participate in professional
orientation and guidance sessions on preparing their CVs
through a simulation of a selection process. With a view toenhancing local area resources, the Proup participates in the“Job Festival” organised by Confindustria Bergamo, where
the company meets students from secondary schools to promote employment opportunities, and provide professional
guidance to students.

8.2 Community Involvement and Development

8.2 COMMUNITY INVOLVEMENT
AND DEVELOPMENT

Halfway through the UN 2030 Agenda, Brembo finds itself
operating in a more complex world than in 2016, when the
Sustainable Development Action Programme came into
force. In particular, the global challenges and transformations taking place require greater cooperation and support
on the part of all, which are to be translated into an increasingly concrete commitment to the social dimensionof sustainability.
In this context, companies are called upon to play an increasingly active role within the communities in which
they are present, contributing positively to building sharedsocial value.
Brembo is aware that it is an important player in the economic and social fabric of the local areas in which it operates around the world, and this generates a deep senseof responsibility towards people, organisations and institutions, as well as the environment.
Over the years, the Group has developed a wide and growing programme of projects and initiatives to involve andsupport local communities, with the aim of bringing concrete support to areas of greatest social need.

In order to guarantee structured and strategic management of social initiatives, Brembo set up a central Social
and Cultural Sponsorships and Donations Committee. Thisbody periodically brings together the Heads of the main
corporate functions, in order to define criteria, guidelines
and priorities on which to focus sponsorships and donations in the social and cultural arena, evaluate initiatives
to support, as well as monitor the compliance and efficacyof the projects being promoted.
These projects are conceived and developed in collaboration with the non-profit sector and local institutions, andare focused on the following action areas: education, training and research, environment and sustainability, sport,
art and culture, social and child protection, Brembo social
projects around the world.
Listening to the needs of communities also entails the extensive involvement of Brembo People, such as the Country General Managers and the voluntary figures of the
CSR Ambassador and CSR Champion, who liaise with the
CSR GCF and bring to the Group’s attention the needs thathave emerged from local communities.

Annual Sustainability Report 2023

213

8. Local Areas

BREMBO’S INTERVENTION ALONGSIDE THE POPULATIONS AFFECTEDBY THE EARTHQUAKE IN TURKEY AND SYRIAIn February 2023, a violent earthquake struck the territoryon the border between Turkey and Syria, causing dramaticconsequences for the communities involved, as well as incalculable damage to buildings and infrastructure alreadystrained by years of war. Aftershocks spread across theregion, forcing millions of people to flee their homes andmove to temporary settlements.
To bring concrete support to these people, Brembo createda “Child Friendly Space” dedicated to the most vulnerable,in particular to women and children who were among themost affected by the earthquake and its consequences.
Conceived and developed in collaboration with Foundation
CESVI and its local partners, “Child Friendly Space” was asafe and secure space in Hatay, the Turkish province withthe highest number of refugee settlements where access toservices and aid was severely limited.
The centre provided psychological and emotional support appropriate to the age of the children involved and their needs,
as well as offered, under the guidance of specialised opera-

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tors, recreational and educational activities and light-hearted
moments, essential to try to rebuild everyday life together.
A van was also equipped that operated as a mobile “Child
Friendly Space”, with a team that provided the necessary
flexibility to meet the needs of even the most remote residential areas. In addition to psychosocial support and the
distribution of basic necessities, the mobile CFS organised
cultural activities, such as the staging of theatrical performances designed for the youngest children.
For adults, the mobile team carried out individual andgroup awareness-raising and psychological support sessions in safe spaces, identified in different locations in theregion to get in touch with beneficiaries and conduct indepth assessments on the needs of the populations.
Project’s activities ended in September 2023. A total of 407
minors and 420 adults participated in the psychosocial support meetings, 59 people benefited from individual counselling and 208 were involved in activities to raise awarenessabout the possible psychological consequences of such a
dramatic event and the actions that could help overcome it.

8.2 Community Involvement and Development

BREMBO’S SUPPORT TO BERGAMO BRESCIA ITALIAN CAPITAL OF CULTURE 2023

2023 was the year of Bergamo Brescia Italian Capital of
Culture. An example of virtuous collaboration between two
urban centres that, for the first time, have been honoured
as just one Italian Capital of Culture. An exceptionally important initiative that was committed to gathering energy
and listening to the protagonists of the local area in which
Brembo has its roots, promoting reflections on the present
and possible future.
In addition to supporting the event as a System Partner,
Brembo took an active part with the display of its 2004 and2020 ADI Compasso d’Oro Awards in “The Thinking Factories” and “Bergamo Brescia Business Culture” exhibitions in
Bergamo Upper Town. Two important events that retraced
the excellence, design and industrial culture of the two protagonist cities.
Also of international importance was the “Yayoi Kusama.
Infinite Present” exhibition which brought one of the most
iconic installations by the famous Japanese artist Yayoi

Kusama to the heart of the city of Bergamo, also thanks to
Brembo’s support as Social Inclusivity Partner.
Bergamo Brescia Italian Capital of Culture was also a newopportunity for the Group to tell the story of Brembo People, putting them at the centre of the “Insiemi di visi e divoci” exhibition, at the Palazzo della Provincia in Bergamo,
which brought together the “ordinary excellence” of the Bergamo area in photographic portraits and recorded voices.
Said event celebrated the important cultural and artistic
heritage of Bergamo and Bresciaand, at the same time,the inventive, design and implementation capabilities ofthe people and companies. These same values are part ofBrembo’s DNA, which has always been oriented towards
innovation and beauty. It is on the basis of these common
traits that Brembo enthusiastically shared the objectives of
the initiative within a broader view of continuous improvement and shared growth.

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215

8. Local Areas

THE BREMBO FOREST IN KENYA AND THE SUPPORT TO THE BIODIVERSITY PARK IN CHAKAN, INDIA

Every single tree is oxygen for the planet and a resource
for man. It is sustenance and life, a symbol of rebirth and agaze towards the future.
To celebrate the 60th anniversary of its foundation, in 2021
the Group donated a tree to all of Brembo People worldwide, thus giving life to the first Brembo Forest, namely in
Kenya, in the Victoria Lake region.
The initiative, called “Brembo4Earth - A gift for you, ourforest for the planet”, was conducted in partnership with
Treedom and allowed 14 thousand trees to be planted in a
combination of stem and fruit species depending on local
area needs.
The Brembo Forest contributes to the achievement of tenof the 17 UN Sustainable Development Goals, bringing both
environmental and social benefits. In particular, the project
involves local communities in forest management and care,providing them with profitable agricultural alternatives.
In 2023, monitoring of the Brembo Forest and support for
the Biodiversity Park in the industrial area of Chakan, India, continued.
This project was developed and implemented in collaboration with the local NGO Bosch & Forest, according to the"Miyawaki method". An afforestation technique, invented
by the Japanese botanist Akira Miyawaki, which uses resist-216

Annual Sustainability Report 2023

ant and spontaneous plants for the recovery and reclamation of abandoned land that, as in the case of Chakan, wasdestined for the illegal dumping of waste and slag.
A decisive phase of the project was the selection of the variety of species to be included in the park to recreate an
ecosystem capable of surviving over time and promoting
the soil’s ability to retain water and its nutrients, the coolingof the microclimate, and the absorption of pollutants andcarbon dioxide.
Today, the biodiversity park is available to the whole community and to the workers of the industrial area who canenjoy a green space where they can reconnect with nature.
In light of the relevance of this project, the Brembo Brake
India local team was bestowed in 2023 with the award for
the Community Involvement & Development category of
the Brembo Sustainability Awards.

To learn more about
Biodiversity Park

8.2 Community Involvement and Development

A “HOUSE OF SMILE” IN INDIA DEDICATED TO MOTHERS AND THEIR CHILDREN

Brembo has been present for years with its manufacturing
plants in Pune, a large city in western India. The long experience in the country has allowed the Group to acquire an
in-depth knowledge of the socio-economic dynamics of thearea and the consequent needs of its community.
For this reason, in 2017 Brembo implemented the “House of
Smile” project in collaboration with the Foundation CESVI.
With over 5,000 unique beneficiaries reached since its launch,
3 education centres and 1 service centre, the project is implemented in the difficult context of the outskirts of Pune,
providing support to highly vulnerable women and children.
Operating within these structures is Swadhar, a local partner that coordinates schemes in the area aimed not only at
responding to people’s immediate needs, but also at building a possible tomorrow together. In particular, the Houseof Smile guarantees a safe and stimulating environment
for the care, development and education of the children involved, but also professional start-up programmes, awareness raising and counselling services to families, mostly toyoung mothers.
In 2023, 345 boys and girls took part in the educational
activities designed for different age groups. These include

the House of Smile nursery school, which provides training
aimed at improving their cognitive, social and fine motor
skills, and support and study classes to promote literacy,
support with study, civic education and healthy and correct
nutrition. In addition, each education centre is equippedwith a library and spaces dedicated to e-learning which,during 2023, were upgraded to ensure greater involvementof young people through interactive face-to-face lessons
and the necessary training for teachers.
The House of Smile also caters to parents in the community with family counselling activities, both individual andgroup, for early childhood support, and awareness programmes regarding career guidance, parenting, the importance of education and health and access to public welfare
programmes. In 2023, a total of 368 adults benefitted fromthese services.
The three education centres also offer professional training
programmes for young women such as tailoring, hair-styling and beautician courses that award a recognised completion certificate. 80 women were involved in these programmes in 2023.
In this context, Brembo Brake India’s team maintains an
open and constant dialogue with the CESVI operators forthe project’s supervision and with the Swadhar’s local
managers to ensure proximity to the women and families of young people benefiting from the House of Smile
services.
In June 2023, the House of Smile welcomed the Ministerof Education and Merit Giuseppe Valditara. On this occasion, the Minister was able to learn about the reality ofthe project and get in touch with some of the people involved. This visit is further confirmation of the excellent
results achieved by the House of Smile and provides a
fresh impetus for continuing with commitment in such asignificant project.

To learn more about"House of Smile" project

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217

8. Local Areas

EMPOWERMENT AND SOCIAL INCLUSION FOR WOMEN AND CHILDREN OF THANE

In 2022, Brembo launched a project in the Indian city ofThane, near Mumbai, with the aim of supporting mothers,
artisans in the textile sector, in managing and caring forchildren.
In collaboration with the Foundation CESVI and local partner ProAction, the project established a Day Care Centre(DCC) operating five days a week that offers different socio-educational services, including educational support
activities, arts and crafts workshops, sporting activities, interactive learning lessons, specialised support sessions inEnglish and healthcare.
This multi-purpose space allows children to learn, explore
and grow in a safe and stimulating environment that contributes to the enhancement of their learning skills and theimprovement of their overall wellbeing. During 2023, 54
children participated in arts and crafts workshops, while 14
children attended career guidance sessions.
In addition to educational support, the young people had
the opportunity to participate in recreational and sporting
activities, such as karate classes and summer camps with

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chess workshops, outdoor games and theatre, planetariumand fire station visits. A total of 52 young people participated in these moments of leisure. The mothers involved in
the project are artisans from the tailoring unit located near
the Centre. The project promotes their economic and social
emancipation through the provision of medical insurance
cover, regular medical check-ups and financial support tocombat the phenomenon of early school leaving and manage family emergencies. The project also includes training
and awareness-raising sessions aimed at strengthening
their competences and skills.
In 2023, the Centre guaranteed health insurance to entire
households, covering a total of 146 beneficiaries including
adults and children. In addition, 65 women benefited frommedical examinations and 81 women were involved inawareness-raising and training sessions, including a firstaid course. The two-year Brembo’s project in Thane is thus
proving to have a significant impact on the local community. Thanks to the Day Care Centre (DCC), opportunities havebeen created to children care, growth and education, while
their mothers benefitted from a fundamental support infamily management and personal development.

8.2 Community Involvement and Development

THE “SCHOOL ON WHEELS” PROJECT TO REACH, WITH A MOBILE EDUCATION SPACE,
CHILDREN ACROSS INDIA

In 2019, Brembo launched the “School on Wheels” project,through a school bus fitted out to serve as a mobile classroom thanks to the collaboration of the local NGO Door Step
School. Inside the school bus, there are books, notebooks,
computers and interactive teaching materials to support
the literacy and study activities of over 550 children.
From Monday to Saturday, “School on Wheels” reaches
the outskirts of the city of Pune, involving groups of 20-25
children at each stop.

Door Step School’s team teaches children aged 5 to 10 thereading, writing and math and to take care of personal hygiene.
In addition, the school bus stops in specific areas for about
two hours, offering the opportunity for those who wish to
use the mobile unit to spend time reading. This initiative has
proved to be very useful both for children who are learning
to read and for those who already know how to read, but do
not have access to books outside of this project.

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219

8. Local Areas

THE “DREAM CENTER” PROJECT TO ENSURE ACCESS TO EDUCATION TO CHILDREN IN THE RURAL CHINA

Within the complex social and economic context of rural
China, millions of vulnerable children often have difficulty
to access quality education, which is key for acquiring theknowledge and skills necessary to start building one’s future.
In order to positively contribute to the needs and challenges of this area in the said field, since 2019 Brembo has
partnered with the Chinese NGO ADream.org as part of the“Dream Center” project.
This project provides not only structural redevelopment ofcertain schools in peripheral areas of rural China, but also
education programmes for teachers aimed at ensuring abetter quality education and stimulate the skills and aspirations of students thanks to an innovative, equal andinclusive approach.
There are currently four Dream Centers operating with thesupport of Adream.org and the local Public Education office:the “Taizhou Experimental Primary School” in the Jiangsu
province with 14 classes, 32 teachers and 1,172 students; the“ZiXi Experimental Primary School” in the city of FuZhou,
Jiangxi province, with 10 classes, 51 teachers and 2,739 students; the “Jietian Central Primary School” in the Jiangxi
province, with 12 classes, 19 teachers and 1,200 students;
and the “Muye Township Central Primary School”, in the cityof Chongqing, with 10 classes, 21 teachers and 417 students.
In support of the project, there has also been significant
engagement of the Brembo China team in the “Tencent
99 Giving Day”, a national fundraising programme throughwhich Brembo People have contributed to the purchase of
educational material for the Dream Centres.
A further proof to which extent commitment, when shared,
not only contributes to reducing geographical and social
gaps, but also creates new opportunities for change. For
the “Dream Center” project this happens respecting the diversity and personality of every individual, ensuring thatanyone is left behind.

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8.2 Community Involvement and Development

TOGETHER WITH THE SMALL PATIENTS OF THE POPE JOHN XIII HOSPITAL IN BERGAMO

As of 2014 Brembo makes an annual contribution to the
Giocamico project at the Papa Giovanni XXIII hospital in
Bergamo. In the Hospital paediatric wards, Giocamico supports and prepares young patients for the most delicate
surgeries and diagnostic tests through play.
In this way the operating theatre may become a space ship
and the operation an adventurous journey with sounds,
images and simulations.
Thanks to the excellent results achieved, the project was
extended to the Radiology Operating Unit where a specificday of the week is dedicated to the examinations of theyoungest patients. The goal is to create a space for listening and discussion, with the support of a psychologist, tohelp children learn about the examination they have toface, simulating it and explaining the steps involved.

With the aim of further developing it within the Hospital,
Giocamico has also been introduced in the Nuclear Medicine Unit, so as to involve patients between the ages ofthree and thirteen in a process that is not only intended
to be one of care, but also of emotional processing andgreater awareness.
Since 2014, 12,261 children benefitted from the Giocamico
project. In 2023, it has also been the subject of a lecture totrainee doctors at the Pope John XXIII Hospital in Bergamo
and the subject of a training course aimed at all psychologists at Padua Hospital.
In addition, in order to ensure that the journey of young
patients is more consciously integrated into each one’s personal history, it is essential that their family members can
be closely involved and supported.
For this reason, Brembo has decided to support the project of the “Friends of Paediatrics” association. The collaboration stems from the need for temporary accommodation for families with specific needs related to distancefrom home and the pathology of the child being treatedin Bergamo Hospital’s paediatric wards, recognised as
outstanding in the European healthcare landscape. However, the reception capacity at local level is often insufficient to adequately cope with the growing demand foraccommodation.
In collaboration with “Friends of Paediatrics”, Brembo has
provided hosted families with a welcoming and functional
apartment, where they can live everyday life and, at thesame time, share their experiences with other guests in theexternal communal areas.

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221

8. Local Areas

FOSTERING SYNERGIES IN SUPPORT OF RESEARCH AND INNOVATION

Brembo’s strong propensity for innovation leads it to pay
particular attention to specialised education and training
programmes aimed at young people, as well as to support
advanced scientific research projects in areas of application
not only in the automotive sector.
An example of this is FROM, the Research Foundation ofPope John XXIII Hospital in Bergamo, set up in 2008 withthe aim of fostering the development of research projects
within the Bergamo Hospital, ensuring the possibility ofmaintaining an active role in national and international
clinical research. The intent is to enhance, optimise andextend the research potential to all hospital sectors, thus
trying to improve the quality of care and health.
Brembo also supports the activities of the Mario Negri Institute, one of the largest centres of biomedical and phar-

222

Annual Sustainability Report 2023

macological research in Italy. The institute contributes todisseminating scientific research and information throughvarious initiatives and tools: it continuously informs thescientific community of new developments and breakthroughs; maintains a close relationship with citizens(especially patients) by sharing information on the use ofpharmaceuticals and updates them regularly on matters
involving scientific research and health.
During the Covid-19 pandemic, Brembo’s support to thesecommunities and to the Pope John XXIII Hospital in Bergamo allowed to finance over 20 research projects conductedjointly to study the virus and its medium- and long-term
consequences. The results of the research projects havebeen published in the most prestigious scientific and medical journals worldwide.

8.2 Community Involvement and Development

BREMBO AND ATALANTA: SPORT AS AN EDUCATIONAL AND SOCIAL VALUESport is an extraordinary tool for personal and collective
growth, favouring inclusion and participation and enhancing talent.
Brembo supports the social role of sport and shares with
Atalanta the educational and cultural values that young
athletes can not only consolidate on the playing field, butalso transfer to other life contexts. These values include
loyalty, team spirit, sacrifice, training, merit, a love of challenges, support for talent and constant improvement, allqualities which also have something in common with academic education.
It is on the basis of this common vision that Brembo andAtalanta, two of Bergamo’s outstanding achievements belonging to different worlds, have been collaborating since
2018, involving the new generations. In particular, sincethat year Brembo has been Top Partner of the Atalanta
Bergamasca Calcio’s Youth Sector.
One of the key elements of this collaboration is the Brembo
Prize, by which the Group annually awards the most de-serving boys and girls in each team, from the Under 15 to
the Primavera categories on the basis of criteria that consider not only strictly sporting aspects, but also and above
all educational results and behaviour.
Now in its fifth edition, in 2023 the Award was conferred byCristina Bombassei, Director and Chief CSR Officer of Brembo, during the ceremony held at the headquarters of theAtalanta Youth Sector in Zingonia, in the presence of 400
young male and female football players, staff and managers of the team.
Brembo also supports the “School at the Stadium” project,a social and educational programme for students thataims to promote knowledge, respect for rules and the fairplay, and prevent episodes of discrimination, not only on
the field but also in everyday life.
Lastly, Brembo’s commitment also extends to the summer
Football Camps promoted by Atalanta Bergamasca Calciofootball team for children aged 7–14, which attract large
numbers of participants every year.

Annual Sustainability Report 2023

223

APPENDIX

APPENDIX

Appendix

APPENDIXBOARD OF DIRECTORS 202382
For financial year 2023, a total of 6 Directors met all thesaid independence requirements: Michela Schizzi, Elisabetta Magistretti, Elizabeth Marie Robinson, Manuela
Soffientini, Giancarlo Dallera, Gianfelice Rocca as theysatisfy the requirements set forth by law and Brembo’s
CGC. It should be noted that, with regard to Gianfelice
Rocca, the Board of Directors, after having valued his specific position, qualified him as independent due to theconsolidated principle of the prevalence of substance

DIRECTOR

over form (since the renewal of his appointment as Director of Brembo follows nine years of completed service
in office). This was also in light of the professionalismand dedication that he has always shown and his active,punctual participation in Board meetings, and to his
speeches and thoughts that have enriched and instilled
quality into debate within the Board towards the resolutions passed, while also maintaining complete independence of judgement.

YEAR OF BIRTH

GENDEREX.

NON-EX.

INDEP.

ARSC

X (Chair)1

Matteo Tiraboschi

1967

M

X

2

Daniele Schillaci

1964

M

X

3

Cristina Bombassei

1968

F

X

4

Elisabetta Magistretti

1947

F

X

X

5

Elisabeth M. Robinson

1956

F

X

X

6

Manuela Soffientini

1959

F

X

X

7

Gianfelice Rocca

1948

M

X

X

8

Umberto Nicodano

1954

M

X

9

Giancarlo Dallera

1946

M

X

X

10

Michela Schizzi

1982

F

X

X

11

Roberto Vavassori

1959

M

RAC

X
X

X

X

X (Chair)X

AUDIT, RISK & SUSTAINABILITY COMMITTEEREMUNERATION & APPOINTMENTS COMMITTEE

AUDIT, RISK AND
SUSTAINABILITY COMMITTEEGENDERAGE RANGEREMUNERATION &APPOINTMENTS COMMITTEE

Elisabetta Magistretti

Female>=51

Manuela Soffientini

FemaleMichela Schizzi

FemaleGENDERAGE RANGE

Giancarlo Dallera

Male

>=51

>=51

Elizabeth Marie Robinson

Female

>=51

30-50

Manuela Soffientini

Female>=51

82 91% of the members of the Board of Directors are over 50.

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Annual Sustainability Report 2023

Appendix

REPORTING TABLES RELATING TO CHAPTER 4 “PEOPLE”
Here below are the tables with detailed quantitative information relating to chapter 4 “People”83.

EMPLOYEES BY GENDER AND GEOGRAPHICAL AREA84 (No.)
2021

2022

2023

MEN

WOMEN

TOTAL

MEN

WOMEN

TOTAL

MEN

WOMEN

TOTAL

Total

9,773

1,882

11,655

10,665

2,291

12,956

11,1672,486

13,653

Europe

5,491

1,239

6,730

5,940

1,427

7,367

6,205

1,550

7,755

America

2,024

340

2,364

2,265

410

2,675

2,314

438

2,752

Asia

2,258

303

2,561

2,460

454

2,914

2,648

498

3,146

EMPLOYEES BY EMPLOYMENT CONTRACT AND GENDER (No.)
2021

2022

2023

MEN

WOMEN

TOTAL

MEN

WOMEN

TOTAL

MEN

WOMEN

TOTAL

Total

9,773

1,882

11,655

10,665

2,291

12,956

11,1672,486

13,653

Permanent
contract

8,092

1,573

9,665

8,840

1,827

10,667

8,991

1,916

10,907

Fixed-term
contract

1,681

309

1,990

1,825

464

2,289

2,176

570

2,746

EMPLOYEES WITH PERMANENT CONTRACT BY GENDER AND GEOGRAPHICAL AREA84 (No.)
2021

2022

2023

MEN

WOMEN

TOTAL

MEN

WOMEN

TOTAL

MEN

WOMEN

TOTAL

Total

8,092

1,573

9,665

8,840

1,827

10,667

8,991

1,916

10,907

Europe

5,094

1,137

6,231

5,509

1,326

6,835

5,574

1,387

6,961

America

1,915

321

2,236

2,177

382

2,559

2,214

412

2,626

Asia

1,083

115

1,198

1,154

119

1,273

1,203

117

1,320

83 It should be noted that for financial years 2021, the reporting scope does not include the J.Juan’s sites.
84 The three macro-areas include the countries specified: Europe: Denmark, Italy, Poland, United Kingdom, Czech Republic, Spain and other European
countries; America: Brazil, Mexico, United States; Asia: China, Japan and India.

Annual Sustainability Report 2023

227

Appendix

EMPLOYEES WITH FIXED-TERM CONTRACT BY GENDER AND GEOGRAPHICAL AREA84 (No.)
2021

2022

2023

MEN

WOMEN

TOTAL

MEN

WOMEN

TOTAL

MEN

WOMEN

TOTAL

Total

1,681

309

1,990

1,825

464

2,289

2,176

570

2,746

Europe

397

102

499

431

101

532

631

163

794

America

109

19

128

88

28

116

100

26

126

1,175

188

1,363

1,306

335

1,641

1,445

381

1,826

Asia

NON-GUARANTEED HOURS EMPLOYEES BY GENDER AND GEOGRAPHICAL AREA84 (No.)
2021

2022

2023

MEN

WOMEN

TOTAL

MEN

WOMEN

TOTAL

MEN

WOMEN

TOTAL

Total

0

0

0

0

0

0

0

0

0

Europe

0

0

0

0

0

0

0

0

0

America

0

0

0

0

0

0

0

0

0

Asia

0

0

0

0

0

0

0

0

0

EMPLOYEES BY EMPLOYMENT CONTRACT AND GENDER (No.)
2021

2022

2023

MEN

WOMEN

TOTAL

MEN

WOMEN

TOTAL

MEN

WOMEN

TOTAL

Total

9,773

1,882

11,655

10,665

2,291

12,956

11,1672,486

13,653Full-time
employees

9,727

1,657

11,384

10,607

2,056

12,663

11,0982,247

13,345Part-time
employees

46

225

271

58

235

293

69

239

308

EMPLOYEES WITH FULL-TIME CONTRACT BY GENDER AND GEOGRAPHICAL AREA84 (No.)
2021

2022

2023

MEN

WOMEN

TOTAL

MEN

WOMEN

TOTAL

MEN

WOMEN

TOTAL

Total

9,727

1,657

11,384

10,607

2,056

12,663

11,0982,247

13,345

Europe

5,445

1,015

6,460

5,882

1,194

7,076

6,136

1,313

7,449

America

2,024

340

2,364

2,265

410

2,675

2,314

438

2,752

Asia

2,258

302

2,560

2,460

452

2,912

2,648

496

3,144

84 The three macro-areas include the countries specified: Europe: Denmark, Italy, Poland, United Kingdom, Czech Republic, Spain and other European
countries; America: Brazil, Mexico, United States; Asia: China, Japan and India.

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Appendix

EMPLOYEES WITH PART-TIME CONTRACT BY GENDER AND GEOGRAPHICAL AREA84 (No.)
2021

2022

2023

MEN

WOMEN

TOTAL

MEN

WOMEN

TOTAL

MEN

WOMEN

TOTAL

Total

46

225

271

58

235

293

69

239

308

Europe

46

224

270

58

233

291

69

237

306

America

0

0

0

0

0

0

0

0

0

Asia

0

1

1

0

2

2

0

2

2

EMPLOYEES AND AGENCY WORKERS (No.)
2021

Employees(headcount)Agency workers(Full Time
Equivalent)

2022

2023

MEN

WOMEN

TOTAL

MEN

WOMEN

TOTAL

MEN

WOMEN

TOTAL

9,773

1,882

11,655

10,665

2,291

12,956

11,1672,486

13,653

988

291

1,279

1,656

354

2.010

1,515

484

1,999

INTERNS BY GENDER AND GEOGRAPHICAL AREA84 (No.)
2023
MEN

WOMEN

TOTAL

Total

108

64

172

Europe64

2993America

44

35

79

Asia

0

0

0

AGENCY WORKERS BY GENDER AND GEOGRAPHICAL AREA84 (FTE)
2021

2022

2023

MEN

WOMEN

TOTAL

MEN

WOMEN

TOTAL

MEN

WOMEN

TOTAL

Total

988

291

1,279

1,656

354

2,010

1,515

484

1,999

Europe

553

193

746

1,078

246

1,324

1,062

410

1,472

America

81

23

104

111

28

139

96

23

119

Asia

354

75

429

467

80

547

357

51

408

84 The three macro-areas include the countries specified: Europe: Denmark, Italy, Poland, United Kingdom, Czech Republic, Spain and other European
countries; America: Brazil, Mexico, United States; Asia: China, Japan and India.

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Appendix

WORKERS WHO ARE NOT EMPLOYEES (SERVICE SUPPLIERS) BY GENDER AND GEOGRAPHICAL AREA84 (No.)
2023
UOMINIDONNETOTALE

Total

3,478

408

3,886

Europe

1,568

96

1,664

America

1,008

160

1,168

902

152

1,054

Asia

EMPLOYEES BY EDUCATIONAL QUALIFICATION (No.)
EMPLOYEES’ EDUCATIONAL QUALIFICATIONS(% OVER THE TOTAL)

2021

2022

2023

11,655

12,956

13,653

Compulsory primary school

30%

29%

29%

High school*

47%

47%

46%

University

23%

24%

25%

EMPLOYEES WITH A UNIVERSITY DEGREEBY SUBJECT STUDIED (% OVER THE TOTAL)

2021

2022

2023

Employees with a university degree

2,690

3,089

3,394

Engineering

55%

55%

55%

Business and Law

21%

19%

19%

Arts, Humanities and Foreign Languages

7%

8%

7%

Mathematical, Physical and Natural Sciences

6%

4%

4%

IT

3%

3%

4%

Social, Political and Behavioural Sciences

3%

3%

3%

Chemistry

2%

1%

1%

Other

3%

7%

7%

Employees* The category “High school” includes exclusively employees bearing a diploma awarded at the end of the whole secondary education.

TURNOVER BY GENDER (%)
2021

2022

2023

MEN

WOMEN

TOTAL

MEN

WOMEN

TOTAL

MEN

WOMEN

TOTAL

Hiring rate

22.6

18.2

21.9

27.9

26.3

27.6

25.7

23.9

25.4

Termination rate

18.2

15.4

17.8

18.7

36.3

21.8

21.5

16.6

20.6

84 The three macro-areas include the countries specified: Europe: Denmark, Italy, Poland, United Kingdom, Czech Republic, Spain and other European
countries; America: Brazil, Mexico, United States; Asia: China, Japan and India.

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Appendix

TURNOVER BY AGE GROUP (%)
2021

2022

2023*

<=30

31-40

41-50

>=51

<=30

31-40

41-50

>=51

<=30

31-40

41-50

>=51

Hiring rate

54.6

17.9

7.9

3.5

67.7

23.7

10.2

4.8

69.7

14.9

5.8

25.4

Termination rate

36.5

15.5

7.9

10.8

47.9

18.7

8.4

11.6

50.6

12.8

10.2

20.6

*	In 2023, age groups were changed according to the GRI standard, as indicated in the table. Data relating to 2022 and 2021 were based on the following age
groups: ≤ 30.9; 31-40.9; 41-50.9; ≥ 51.

TURNOVER RATE BY GEOGRAPHICAL AREA84 (%)
2021

Hiring rate
Termination rate

2022

2023

EUROPEAMERICAASIAEUROPEAMERICAASIAEUROPEAMERICA

ASIA

9.1

43.7

35.2

12.6

58.2

37.7

14.2

36.9

42.7

7.8

33.8

29.1

9.1

46.9

30.7

9.9

34.2

35.3

TRAINING HOURS BY CLASSIFICATION LEVEL AND GENDER (h)
2021

2022

2023

MEN

WOMEN

TOTAL

MEN

WOMEN

TOTAL

MEN

WOMEN

TOTAL

Total

249,488

30,506279,994

350,262

56,047406,308305,20346,456351,659

Managers

12,565

1,774

14,33915,955

3,277

19,233

15,6703,150

18,820White-collar
employees

63,05917,82380,882

82,67824,934

107,61279,097

24,689103,786

Blue-collar
employees

173,865

10,909184,774

251,628

27,835

279,464

210,437

18,616

229,053

84 The three macro-areas include the countries specified: Europe: Denmark, Italy, Poland, United Kingdom, Czech Republic, Spain and other European
countries; America: Brazil, Mexico, United States; Asia: China, Japan and India.

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Appendix

RECORDABLE INCIDENTS85, FATALITIES AND HOURS WORKED OF EMPLOYEES BY GEOGRAPHICAL AREA84 AND GENDER (No.)
2021
MEN

2022

WOMEN

TOTAL

2023

MEN

WOMEN

TOTAL

MEN

WOMEN

TOTAL

WORK-RELATED INJURIES WITHOUT HIGH CONSEQUENCES

86

Europe

41

8

49

50

7

57

41

9

50

America

16

2

18

14

0

14

11

0

11

Asia

6

1

7

4

0

4

7

1

8

Total

63

11

74

68

7

75

59

10

69

HIGH-CONSEQUENCE WORK-RELATED INJURIES86 (EXCLUDING FATALITIES)Europe

0

0

0

2

0

2

0

0

0

America

0

0

0

1

0

1

1

0

1

Asia

1

0

1

1

0

1

0

0

0

Total

1

0

1

4

0

4

1

0

1

Europe

0

0

0

0

0

0

0

0

0

America

0

0

0

0

0

0

0

0

0

FATALITIES

Asia

0

0

0

0

0

0

0

0

0

Total

0

0

0

0

0

0

0

0

0

WORKPLACE INCIDENTS - TOTAL

Europe

41

8

49

52

7

59

41

9

50

America

16

2

18

15

0

15

12

0

12

Asia

7

1

8

5

0

5

7

1

8

Total

64

11

75

72

7

79

60

10

70

Europe

19

5

24

20

7

27

24

4

28

COMMUTING INCIDENTS

America

10

4

14

22

16

38

14

26

40

Asia

4

0

4

2

0

2

1

1

2

Total

33

9

42

44

23

67

39

31

70

Europe8,942,007

2,141,679

11,083,686

9,662,113

2,372,647

12,034,760

9,932,861

2,625,579

12,558,440

America

4,002,291

798,4154,800,706

4,941,011

969,7225,910,733

5,099,758

983,273

6,083,031

Asia

4,613,251

637,499

5,250,750

5,187,365

978,914

6,166,279

5,581,309

1,110,040

6,691,349

Total

17,557,549

3,577,593

21,135,142

19,790,489

4,321,283

24,111,772

20,613,928

4,718,892

25,332,820

HOURS WORKED(*) D
 ata has been adjusted as two incidents that had occurred in 2020 led to an absence exceeding 180 days in 2021, thus qualifying as “incidents with highconsequences” and an incident that occurred in 2020 was not recognised as incident in 2021.

84 The three macro-areas include the countries specified: Europe: Denmark, Italy, Poland, United Kingdom, Czech Republic, Spain and other European
countries; America: Brazil, Mexico, United States; Asia: China, Japan and India.
85 “Recordable workplace incidents” are incidents that cause one of the following situations: death, days of missed work, restriction of work duties or assignment to other duties, medical care beyond first aid or loss of consciousness, major injury or illness diagnosed by a physician or other authorised healthcare
provider, even when it is not a cause of death, days of absence from work, restriction of work duties or assignment to other duties, medical care beyond firstaid or loss of consciousness.
86 “High consequences” mean incidents that may lead to the permanent loss of body function or incidents that report an absence of more than 180 days.

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RATE OF RECORDABLE85 INCIDENTS AND FATALITIES OF EMPLOYEES (AT WORKPLACE) BY GEOGRAPHICALAREA84 AND GENDER
2021
MEN

WOMEN

2022

2023

TOTAL

MEN

WOMEN

TOTAL

MEN

WOMEN

TOTAL

INCIDENT RATE WITHOUT HIGH CONSEQUENCES86

Europe

0.92

0.75

0.88

1.03

0.59

0.95

0.83

0.69

0.80

America

0.80

0.50

0.75

0.57

0.00

0.47

0.43

0.00

0.36

Asia

0.26

0.31

0.27

0.15

0.00

0.13

0.25

0.18

0.24

Total

0.72

0.61

0.70

0.68

0.32

0.62

0.57

0.42

0.54

INCIDENT RATE WITH HIGH CONSEQUENCES87

Europe

0.00

0.00

0.00

0.04

0.00

0.03

0.00

0.00

0.00

America

0.00

0.00

0.00

0.04

0.00

0.03

0.04

0.00

0.03

Asia

0.04

0.00

0.04

0.04

0.00

0.03

0.00

0.00

0.00

Total

0.01

0.00

0.01

0.04

0.00

0.03

0.01

0.00

0.01

Europe

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

America

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

Asia

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

Total

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

Europe

0.92

0.75

0.88

1.08

0.59

0.98

0.83

0.69

0.80

America

0.80

0.50

0.75

0.61

0.00

0.51

0.47

0.00

0.39

Asia

0.30

0.31

0.30

0.19

0.00

0.16

0.25

0.18

0.24

Total

0.73

0.61

0.71

0.73

0.32

0.66

0.58

0.42

0.55

FATALITY FREQUENCY RATEINCIDENT RATE - TOTAL

Calculation methods:• Incident rate without high consequences: (No. of recordable work-related injuries without high consequences/ No. of hours worked) x 200,000.
• Incident rate with high consequences (No. of recordable high-consequence work-related injuries / No. of hours worked) x 200,000.
• Fatality frequency rate: (No. of fatalities resulting from work-related incidents / No. of hours worked) x 200,000.

84 The three macro-areas include the countries specified: Europe: Denmark, Italy, Poland, United Kingdom, Czech Republic, Spain and other European
countries; America: Brazil, Mexico, United States; Asia: China, Japan and India.
85 “Recordable workplace incidents” are incidents that cause one of the following situations: death, days of missed work, restriction of work duties or assignment to other duties, medical care beyond first aid or loss of consciousness, major injury or illness diagnosed by a physician or other authorised healthcare
provider, even when it is not a cause of death, days of absence from work, restriction of work duties or assignment to other duties, medical care beyond firstaid or loss of consciousness.
86 “High consequences” mean incidents that may lead to the permanent loss of body function or incidents that report an absence of more than 180 days.

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CASES OF EMPLOYEE OCCUPATIONAL DISEASES AND FATALITIES BY GEOGRAPHICAL AREA84 AND GENDER (No.)
2021
MEN

2022

WOMEN

2023

TOTAL

MEN

WOMEN

TOTAL

MEN

WOMEN

TOTAL

CASES OF RECORDABLE OCCUPATIONAL DISEASESEurope

5

10

15

10

0

10

16

6

22

America

0

0

0

0

0

0

0

0

0

Asia

0

0

0

0

0

0

0

0

0

Total

5

10

15

10

0

10

16

6

22

FATALITIES RESULTING FROM OCCUPATIONAL DISEASESEurope

0

0

0

0

0

0

0

0

0

America

0

0

0

0

0

0

0

0

0

Asia

0

0

0

0

0

0

0

0

0

Total

0

0

0

0

0

0

0

0

0

84 The three macro-areas include the countries specified: Europe: Denmark, Italy, Poland, United Kingdom, Czech Republic, Spain and other European
countries; America: Brazil, Mexico, United States; Asia: China, Japan and India.

234

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RECORDABLE85 INCIDENTS, FATALITIES AND HOURS WORKED OF WORKERS WHO ARE NOT EMPLOYEESBY GEOGRAPHICAL AREA84 AND GENDER (No.)
2021
MEN

2022

WOMEN

TOTAL

2023

MEN

WOMEN

TOTAL

MEN

WOMEN

TOTAL

WORK-RELATED INJURIES WITHOUT HIGH CONSEQUENCES86

Europe

13

1

14

17

2

19

11

1

12

America

0

1

1

0

1

1

3

0

3

Asia

1

0

1

1

1

2

0

0

0

Total

14

2

16

18

4

22

14

1

15

HIGH-CONSEQUENCE WORK-RELATED INJURIES86 (EXCLUDING FATALITIES)Europe

0

0

0

0

1

1

0

0

0

America

0

0

0

0

1

1

0

0

0

Asia

0

0

0

0

0

0

0

0

0

Total

0

0

0

0

2

2

0

0

0

Europe

0

0

0

0

0

0

0

0

0

America

0

0

0

0

0

0

0

0

0

Asia

0

0

0

0

0

0

0

0

0

Total

0

0

0

0

0

0

0

0

0

FATALITIESWORK-RELATED INCIDENTS - TOTAL

Europe

13

1

14

17

3

20

11

1

12

America

0

1

1

0

2

2

3

0

3

Asia

1

0

1

1

1

2

0

0

0

Total

14

2

16

18

6

24

14

1

15

Europe1,508,022

502,1892,010,211

1,949,868

781,2812.731,149

2,169,781

790,8712,960,652

America

126,490

52,120178,610

184,079

52,046236,125

307,938

61,375369,313

Asia

1,195.542

162,603

1,358,145

1,249,048

208,333

1,457,381

987,364

150,650

1,138,014

Total

2,830,054

716,9123,546,966

3,382,995

1,041,660

4,424,655

3,465,083

1,002,896

4,467,979

HOURS WORKED (No.)** The number of hours worked reported in this table includes the hours relating to workeepers and agency workers.

84 The three macro-areas include the countries specified: Europe: Denmark, Italy, Poland, United Kingdom, Czech Republic, Spain and other European
countries; America: Brazil, Mexico, United States; Asia: China, Japan and India.
85 “Recordable workplace incidents” are incidents that cause one of the following situations: death, days of missed work, restriction of work duties or assignment to other duties, medical care beyond first aid or loss of consciousness, major injury or illness diagnosed by a physician or other authorised healthcare
provider, even when it is not a cause of death, days of absence from work, restriction of work duties or assignment to other duties, medical care beyond firstaid or loss of consciousness.
86 “High consequences” mean incidents that may lead to the permanent loss of body function or incidents that report an absence of more than 180 days.

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RATE OF RECORDABLE85 INCIDENTS AND FATALITIES OF WORKERS WHO ARE NOT EMPLOYEES (AT WORK) BY
GEOGRAPHICAL AREA84 AND GENDER
2021
MEN

WOMEN

2022
TOTAL

2023

MEN

WOMEN

TOTAL

MEN

WOMEN

TOTAL

IINCIDENT RATE WITHOUT HIGH CONSEQUENCES86

Europe

1.72

0.40

1.39

1.74

0.51

1.39

1.01

0.25

0.81

America

0.00

3.84

1.12

0.00

3.84

0.85

1.95

0.00

1.62

Asia

0.17

0.00

0.15

0.16

0.96

0.27

0.00

0.00

0.00

Total

0.99

0.56

0.90

1.06

0.77

0.99

0.81

0.20

0.67

INCIDENT RATE WITH HIGH CONSEQUENCES86

Europe

0.00

0.00

0.00

0.00

0.26

0.07

0.00

0.00

0.00

America

0.00

0.00

0.00

0.00

3.84

0.85

0.00

0.00

0.00

Asia

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

Total

0.00

0.00

0.00

0.00

0.38

0.09

0.00

0.00

0.00

FATALITY FREQUENCY RATE

Europe

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

America

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

Asia

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

Total

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

Europe

1.72

0.40

1.39

1.74

0.77

1.46

1.01

0.25

0.81

America

0.00

3.84

1.12

0.00

7.69

1.69

1.95

0.00

1.62

Asia

0.17

0.00

0.15

0.16

0.96

0.27

0.00

0.00

0.00

Total

0.99

0.56

0.90

1.06

1.15

1.08

0.81

0.20

0.67

INCIDENT RATE - TOTAL

Calculation methods:• Incident rate without high consequences: (No. of recordable work-related injuries without high consequences/ No. of hours worked) x 200,000.
• Incident rate with high consequences (No. of recordable high-consequence work-related injuries / No. of hours worked) x 200,000.
• Fatality frequency rate: (No. of fatalities resulting from work-related incidents / No. of hours worked) x 200,000.

84 The three macro-areas include the countries specified: Europe: Denmark, Italy, Poland, United Kingdom, Czech Republic, Spain and other European
countries; America: Brazil, Mexico, United States; Asia: China, Japan and India.
85 “Recordable workplace incidents” are incidents that cause one of the following situations: death, days of missed work, restriction of work duties or assignment to other duties, medical care beyond first aid or loss of consciousness, major injury or illness diagnosed by a physician or other authorised healthcare
provider, even when it is not a cause of death, days of absence from work, restriction of work duties or assignment to other duties, medical care beyond firstaid or loss of consciousness.
86 “High consequences” mean incidents that may lead to the permanent loss of body function or incidents that report an absence of more than 180 days.

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CASES OF OCCUPATIONAL DISEASES AND FATALITIES OF WORKERS WHO ARE NOT EMPLOYEES BY GEOGRAPHICALAREA84 AND GENDER (No.)
2021
MEN

2022

WOMEN

2023

TOTAL

MEN

WOMEN

TOTAL

MEN

WOMEN

TOTAL

CASES OF RECORDABLE OCCUPATIONAL DISEASESEurope

0

0

0

0

0

0

2

0

2

America

0

0

0

0

0

0

0

0

0

Asia

0

0

0

0

0

0

0

0

0

Total

0

0

0

0

0

0

2

0

2

FATALITIES RESULTING FROM OCCUPATIONAL DISEASESEurope

0

0

0

0

0

0

0

0

0

America

0

0

0

0

0

0

0

0

0

Asia

0

0

0

0

0

0

0

0

0

Total

0

0

0

0

0

0

0

0

0

CASES OF NEAR MISSES REPORTED (EMPLOYEES AND WORKERS WHO ARE NOT EMPLOYEES)
2021
MEN

2022

2023

WOMEN

NON
SPECIFIC

TOTAL

MEN

WOMEN

NON
SPECIFIC

TOTAL

MEN

WOMEN

NON
SPECIFICTOTALNEAR MISSES REPORTED

Europe

241

26

40

307

245

28

70

343

354

34

99

487

America

26

0

2

28

69

5

14

88

74

5

20

99

Asia

81

2

13

96

119

1

12

132

124

4

14

142

Total

348

28

55

431

433

34

96

563

552

43

133

728

84 The three macro-areas include the countries specified: Europe: Denmark, Italy, Poland, United Kingdom, Czech Republic, Spain and other European
countries; America: Brazil, Mexico, United States; Asia: China, Japan and India.

Annual Sustainability Report 2023

237

Appendix

COUNTRY-BY-COUNTRY REPORTING

COUNTRYDESCRIPTION

ITALY

Analysis, design, development, application,
production, assembly and sale of braking systems,light alloy castings for various sectors, including
the car and motorbike industries

III.
EMPLOYEES
(No.)

IV.
REVENUESFROM SALESTO THIRDPARTIESV.
REVENUESFROMINTRAGROUP
TRANSACTIONSWITH OTHER
FISCALJURISDICTIONSVI.
PROFIT/LOSSBEFORETAXES

VII.
PROPERTY,
PLANT ANDEQUIPMENTOTHER
THAN CASH
AND CASH
EQUIVALENTS

VIII.
INCOMETAXES OFCOMPANIES
PAID ON A
CASH BASISIX.
INCOMETAXES OFCOMPANIESACCRUEDON PROFIT/
LOSS

3,544

1,045,896,224

258,021,495(64,303,322)

491,146,594

11,902,906(36,528,266)

530

97,355,840

11,606,870

2,542,500

34,954,413

899,171(1,120,464)

Precision mechanical processing, lathe work,mechanical component production and similar
activities, on its own account or on behalfof third parties
Research and development of innovativetechnologies for the production of technicaland advanced ceramic materials, geomaterial
processing and rock mass characterisation
Development, design, industrialisation,
manufacturing, installation and marketing of fibre
optic sensors systems and photonic subsystems
for sensing and communications
SPAIN

Sale of brake discs and drums for cars, distributionof the brake shoe kits and pads
Production and sale of components for motorbikebraking systems and braided hydraulic hoses

UNITED
KINGDOM

Production and sale of braking systems
and clutches for road and racing vehicles

167

74,198,240

3,346

10,102,262

26,717,429

1,540,610(1,799,729)

POLAND

Development, casting, production and saleof brake discs

2,381

634,169,541

47,496,332

80,572,511

404,555,397-(13,770,444)

1,009

291,621,672

18,483,943

13,984,413

150,520,767--

Discs and braking systems for carsand commercial vehicles
CZECH
REPUBLIC

Casting, production and sale of braking systems
for cars

DENMARK

Production of brake pads for motorbikes

108

13,890,021

11,161,813(10,087,655)

18,398,603-

122,831

GERMANY

Purchase and resale of vehicles, technicaland sales services, as well as promotionof the sale of car brake discs

11-

2,700,392(1,528,448)

25

400,301(627,559)

2-

922,797(329,181)-

118,208(126,443)

SWITZERLAND Reinsurance of the Group’s risks

1

-

-

532,637-

4,828(88,075)

RUSSIA3.

300,022(333,076)

‘

1,810

(675)

Design, development, production
and sale of carbon ceramic brake discs
SWEDEN

238

Promotion of the sale of car brake discs

Promotion of the sale of car brake discs

Annual Sustainability Report 2023

Appendix

COUNTRYDESCRIPTIONUNITED
STATES

Production and sale of brake discs for original equipment and the aftermarket, and of braking systems
for the racing sector

III.
EMPLOYEES
(No.)

IV.
REVENUESFROM SALESTO THIRDPARTIESV.
REVENUESFROMINTRAGROUP
TRANSACTIONSWITH OTHER
FISCALJURISDICTIONSVI.
PROFIT/LOSSBEFORETAXES

VII.
PROPERTY,
PLANT ANDEQUIPMENTOTHER
THAN CASH
AND CASH
EQUIVALENTS

VIII.
INCOMETAXES OFCOMPANIES
PAID ON A
CASH BASISIX.
INCOMETAXES OFCOMPANIESACCRUEDON PROFIT/
LOSS

708

401,976,606

28,655,519

94,683,191

158,963,137

11,526,743(10,890,772)

1,832

520,967,946

10,510,240

105,807,065

384,605,275

33,077,547(14,699,538)

212

78,086,811-

12,571,352

12,877,140

2,120,212(1,963,625)

1,967

531,815,490

37,074,862

115,611,241

265,225,388

20,018,602(22,779,752)

Aftermarket, and braking systems for cars,
motorbikes and the racing sector
Inspirational Lab: experimental lab focused onstrengthening expertise in software development,
data science and artificial
MEXICO

Casting, production and sale of car brake discs
for original equipment and the aftermarket; casting, production and sale of braking systems
for cars and commercial vehicles

BRAZIL

Production and sale of car brake discs
for the original equipment market

CHINA

Casting, production and sale of brake discs
for the original equipment and braking systems
for cars and commercial vehicles
Development, casting, production and sale of brakediscs for the original equipment for cars; logistics
and marketing activities in the economic
and technological development hub of Qingdao

JAPAN

Sale of braking systems for the racing sector
and original equipment for cars

27

4,799,640

2,346,574

1,377,268

1,694,317

433,447(345,443)

INDIA

Development, production and sale of braking
systems for motorbikes

1,152

154,423,754

1,578,818

30,858,342

25,531,858

4,596,075(6,141,414)

-

-

-

(60,706)

54,656--

13,654

3,849,201,785

430,863,024

392,000,395

1,975,244,999

86,640,460(110,759,368)

THAILANDTOTALLEGEND: HR AREA TERMINOLOGYDESCRIPTION NECESSARY WORDING IN REPORTS

ENGLISHA

Employees with permanent or fixed-term contract

Employees

B

Agency workers

Agency workers

C

A+B

Brembo People

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239

Appendix

EXPLANATORY NOTE ON THE OCCUPATIONAL HEALTH AND SAFETY INDICATORS (GRI 403)
For a greater disclosure relating to the occupational healthand safety indicators a detailed description of the ISO
45001 Management System is reported below.

H&S POLICYThe Group H&S Policy sets out the highest principles governing the management of H&S aspects throughout Brembo.
It is adopted by all sites that are required:
•
•

240

to incorporate it into their own Policy (“Site Policy”);
to adapt the Site Policy content to the operating
context based on the main risks characterising
the specific site.

Annual Sustainability Report 2023

The Group Policy, therefore, provides the overall framework
within which employee health and safety is assured, leaving
the formalisation of specific and operational aspects, suchas Emergency Plans and specific risks, to other tools such asGroup Guidelines and Site Procedures and Instructions.
The Group Policy, as well as the Guidelines, Site Proceduresand Instructions are translated into the local languages inorder to ensure they are understood and circulated.

Appendix

ISO 45001 MANAGEMENT SYSTEM MANUALGROUP MANUAL

MACRO CONTENTS

Occupational Healthand Safety Management
System Manual

The "Occupational Health and Safety Management System Manual" (hereinafter referred toas the "Manual") lays down the principles to be implemented in BREMBO Group Companies
to protect, as a priority, the health and safety of workers, and subordinately, the persons in theGroup Companies who, according to current regulations, are responsible for correctly managing
occupational health and safety aspects, as well as BREMBO, understood as a Company thatconsiders worker health and safety to be a primary value that must be adequately protected.
The Model adopted by Brembo to manage occupational health and safety aspects is explained within an organic Management System, defined:••at Group level, in addition to this Manual, by Guidelines prepared by the Health & Safety
body (hereinafter H&S);
at Plant level, by local Procedures and Instructions which, referring to the Manual and the
Guidelines, also incorporate the current legislative provisions.

Local Procedures and Instructions must incorporate all aspects covered by the Manual andGuidelines: each Plant, therefore, defines, formalises and applies its own Management System which, referring to the Manual and the Guidelines, guarantees, at the same time, standardised management, at Group level, of aspects relating to occupational health and safety.
It is the responsibility of each Plant to send H&S any proposals for improvement, applicableto the Manual and/or the Guidelines, that emerge when these are adopted or during implementation of the local Management System. Conversely, it is the responsibility of H&S toevaluate and, where applicable, incorporate the proposals received, as well as to give feedback to the Plant regarding the decisions taken.
This Manual and the related Guidelines incorporate the principles described by ISO 45001:
2018 – Occupational Health and Safety Management Systems. Requirements with guidance for use.
H&S will periodically review the Manual and the Guidelines so that the principles from which
they draw inspiration are increasingly adequately stated, as well as expand the minimum
requirements that the Plant must necessarily adopt.
Furthermore, by adopting the principles that inspire the company's Code of Ethics, the Occupational Health and Safety Management System is an integral part of the more general
Legal Compliance System and, for BREMBO S.p.A. and its Italian Subsidiaries alone, of theOrganisational, Management and Control Model.
The Manual is distributed to all the Global Business Units (GBU), Global Central Functions(GCF) and Regions / Countries; it is available for consultation by the workers through the
BREMBO internal IT network.
According to the company policy, all production plants are required to certify their own Management System using an accredited third party certification Body.

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241

Appendix

ISO 45001 MANAGEMENT SYSTEM - GROUP GUIDELINESThe Guidelines and the related macro contents are reported below:

THE GROUP GUIDELINES

MACRO CONTENTS

Understanding the context,
the needs and expectationsof interested parties

The purpose of the Guideline is to identify the ways in which the Plant analyses the local
context in order to determine the internal and external factors, as well as the risks andopportunities that, although not having a direct impact on worker health and safety,
could have a significant effect on the ability to achieve the results expected from theManagement System.

Roles, responsibilities andauthorities of personnel who
manage occupational healthand safety aspects

The purpose of the Guideline is to define how the General Manager / Employer, a function that at the highest level guides and controls the Plant for occupational health andsafety aspects, ensures that the responsibilities and authorities for the roles envisaged,
both by the applicable legislation and by the Management System, are assigned andcommunicated to the Plant’s entire organisational structure.

Occupational healthand safety risk assessment

The Guideline defines how to identify hazards and assess all risks; In particular, it specifies how to:• identify hazards to worker health and safety related to the activities, products andservices performed that can be controlled by the Plant or over which influence canbe exercised;• assess the significance of the impacts and draw up the Risk Assessment Document.

Opportunity assessment

The Guideline defines the ways of identifying and evaluating opportunities that could
lead to improve Plants' performance in terms of occupational health and safety.
Opportunities for improvement are to be intended as such when implemented on processes that are already adequate, in order to further improve performance: in fact, an
opportunity for improvement is not to be considered as such if it is implemented toresolve non-compliance or to meet a legal requirement.

Compliance

The Guideline defines the methods to be used to identify and update the legal requirements and the requirements signed up to on a voluntary basis in order to ensure continuous compliance.
Legislative compliance, representing one of the essential principles on which the Occupational Health and Safety Management System is built, is the primary objective to beachieved and maintained for the General Manager / Employer and for the whole Plant.

Objectives, KPIs,
monitoring and reporting

The purpose of the Guideline is to describe, both at Group and individual Plant level,
and with respect to the Occupational Health and Safety Management System, the procedures whereby to:•••define the KPIs;
plan how to reach objectives;
monitor, measure and assess performances.

In particular, the definition of the KPIs, the planning, monitoring and measure of performances, as well as the activities of the Management System, are based on the Plan / Do
/ Check / Act (PDCA) cycle concept.

242

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Appendix

THE GROUP GUIDELINES

MACRO CONTENTS

Resources,
competences, awarenessand communication

The purpose of the Guideline is to define the principles which describe the procedures:

Guidelines, procedures,instructions and modules

The Guideline defines the responsibilities and procedures for issuing the Manuals,
Guidelines, Procedures, Instructions and Modules relating to the Occupational Healthand Safety Management System.

Operational control
and change management

The purpose of the Guideline is to define the general principles so that:é:

•
•
•
•

•

•

to determine the resources necessary to maintain and improve the Management System;
to identify and develop competences;
to increase employees’ awareness;
to implement Plant internal and external communication associated with the Management System.

the operational planning and control of Plant processes are established and implemented to improve occupational health and safety by eliminating hazards or, if notpracticable, reducing risks to the lowest reasonably achievable levels;
the Plant defines a process for the implementation and control of temporary and/or permanent changes that have an impact on worker health and safety in order tominimise the introduction of new hazards and/or risks.

Management of safety
aspects in the life cycle ofmachines and equipment

This Guideline describes the activities relating to the management of machines within
the Brembo Group, such as purchase, commissioning and maintenance of safety standards in the event of modification, sale or scrapping.

Management of particularly
hazardous substances

The Guideline defines the substances and/or products classified as particularly hazardous for worker health and the use of which is prohibited or strongly discouraged
in Brembo.

Management of chemical
products entering the plant

The Guideline describes the minimum activities that must be carried out to ensure thatchemical substances entering the Plant are managed correctly.

Chemical risk management

The Guideline defines how to manage risks for employee health and safety that may
result from exposure to chemical agents, under both normal and abnormal or emergency conditions.

Ergonomic risk
management in production
plant construction
and risk assessment

The Guideline defines, with regard to ergonomic aspects, the ways of designing newplants / work lines and assessing and reducing risk, in order to prevent incidents occurring or the onset of occupational diseases related to this type of risk.

Work permits

The purpose of the Guideline is to provide the principles to be applied to safely plan andcarry out potentially hazardous work.

Hot work

The purpose of the Guideline is to define the principles that the General Manager
must adopt, and apply in operations, to prevent the onset of fires and/or explosions
due to the performance of "hot work”. The principles expressed in this Guideline areapplicable to hot work regardless of whether it is carried out on a temporary basis orcontinuously.

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243

Appendix

THE GROUP GUIDELINES

MACRO CONTENTSElectronic mobile devices

The purpose of the Guideline is to illustrate the main indications regarding the related
requirements, the assessment of any risks and the proper use of equipment/devices atwork, with specific regard to those delivered to the workers whose professional activity
involves the use of electronic mobile devices, such as laptops, tablets and smartphone.

Contract and outsourcing
management

The purpose of the Guideline is to define the Group standard for managing processes
inherent to:• the supply of products and services;• the management — with regard to the aspects relating to occupational health andsafety — of the subcontracted activities;• the outsourcing.

Emergency response

The purpose of the Guideline is to define the proper procedures for:• preparing and tackling emergency situations relating to occupational health and safety, and that can be reasonably predicted at the Plant;• drafting the Plant Emergency Plan.
The purpose of the management of possible occupational health and safety emergencies is to:• determine the possible emergency situations;• plan the management of any emergency situations so as to prevent and/or mitigate
the possible impacts;• periodically review the emergency management processes in order to improve them.

Audit management

The Guideline sets forth criteria, procedures for executing and sharing the checks carried out in the areas falling within the scope of the Occupational Health and Safety
Management System.

Management review

The Guideline defines the procedures for managing and performing the Management Review with regard to the aspects related to occupational health and safety.
The Management System defined by the Corporate is reviewed by the Group CEO andCIOO and the first-level management upon, for instance, the Industrial Operations, H&S
and Environment & Energy Committees’ meetings.
The General Manager reviews the Plant Management System at least annually in order toassess its suitability, adequacy and efficacy in maintaining:• compliance with applicable laws and requirements;• compliance with the ISO 45001 requirements;• congoing performance improvement;• compliance with the principles defined by the Occupational Health and Safety Management System Manual and the Guidelines.

Management of incidents,
near misses and continual
improvement

The Guideline sets forth the principles to the used to manage the improvement opportunities and undertake the actions necessary to achieve the results expected from theManagement System.

Finally, in order to ensure that the Management System iscorrectly implemented by the sites, it is specified that the
H&S Corporate area manages, for the Group, the various
activities designed to supervise and have under control site
activities, such as:• periodic legislative assessment, performed by a third
party Body, which carries out audits on all sites and244

Annual Sustainability Report 2023

draws up a summary report on any observations that
may emerge. This assessment analyses all aspects relevant to H&S issues such as:• H&S organisation;• risk assessment document;• exposure to chemical, physical and biological agents;• training;Appendix•• emergency plan;• fire prevention;• machines, equipment;• surveillance and incident management.
periodic ISO 45001 certification audits, carried out by a•third-party company covering the whole Group, which
verifies that all the principles defined by the standard arecorrectly implemented by the sites;
audits, on a sample basis, relating to the site Management System carried out on the Plants by the H&S entity.

CASES OF NON-COMPLIANCE WITH LAWS AND REGULATIONS DETECTED IN 2023
AND RELATED SANCTIONS

The total number of significant cases of non-compliancewith laws and regulations in relation to which the Group
had to pay a fine and the cases in which it received awarning for non-compliance not entailing the need tomake a payment are reported below.

The relevance threshold for fines was set at a total of€10,000 with respect to the area (environment, labour law
and occupational safety) for which a fine was received. In
2023, Brembo did not receive fines of an amount exceeding the said threshold.

No. OF FINES

No. OF NON-MONETARY SANCTIONS

Total

0

0

Europe00America

0

0

Asia

0

0

Here below is detailed information of the fines paid by
Brembo Group in 2023, with reference to both violations

detected in the same year and in previous reporting periods87.

ENVIRONMENTAL LEGISLATION

EuropeAmerica

Asia

NOTES

LABOUR LAW AND OCCUPATIONAL
SAFETY LEGISLATION

No. of sanctions

Overall amount (€)

No. of sanctions

Overall amount (€)

Violations in 2023

0

0

0

0

previous

0

0

0

0

Violations in 2023

0

0

0

0

previous

1

101,70300Violations in 2023

0

0

0

0

previous

0

0

0

0

The only significant fine paid by the Brembo Group in
2023 is attributable to an environmental legislation violation. Reasons underlying said fine were the atmosphericpollution emissions beyond limit: the violation occurredin the United States in 2022.

87 Consistent with the other information contained in this document, data relating to payments made in 2023 with reference to warnings received in theprior two-year period (2021-2022) is reported below under “previous violations”.

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245

Appendix

MATERIAL TOPICS, LEGISLATIVE AREAS AND RELATED GRI ASPECTS
MATERIAL TOPICSIDENTIFIED BYBREMBO

AREAS OFLEGISLATIVEDECREE (IT)254/2016

IMPACTSREFERENCE GRISTANDARDS

BOUNDARY
LIMITATIONSBOUNDARY
LIMITATIONS

Suppliers

Reporting partiallyextended to suppliers

Environmentally
sustainableproduct

SocialPrimary raw material saving
through the use of recycled
and recyclable materials*

Energy efficiency

Environmental

Reduction of energy
availability due to non-efficient
production processes

302: Energy (2016)

Protection ofwater resources

Environmental

Water scarcity, in particularin water-stressed areas, due
to water consumption in the
production process

303: Water and Effluents(2018)

Training anddevelopment of
personnel

SocialDevelopment of skills andknow-how through ad hoc
training activities

401: Employment (2016)
404: Training and
Education (2016)

Wellbeing of
personnel

SocialFailure to ensure workers’
wellbeing due to the absenceof dedicated company
initiatives*

Product safety

Social

Product reliability and safety

416: Customer Healthand Safety (2016)

Customers

Workers’ healthand safety

SocialWorkers’ accidents andoccupational diseases due
to non-suitable working
conditions

403: Occupational Healthand Safety (2018)

Workers
who are not
employees
Contractors

Reporting partiallyextended tocontractors

Greenhouse gas
emissions

Environmental

Climate change caused bygreenhouse gas emissions

305: Emissions (2016)

Suppliers

Reporting partiallyextended to suppliers

Reduction of greenhousegas and polluting emissions
generated by final users
through the developmentof innovative technologies

305: Emissions (2016)

Suppliers

Reporting partiallyextended to suppliers

Protection of
biodiversity

Environmental

Soil occupation and lossof biodiversity

304: Biodiversity (2016)

Pollutingemissions

Environmental

Damage to the environmentand human health due topolluting emissions in the air

305: Emissions (2016)

Reduction of greenhousegas and polluting emissions
generated by final users
through the developmentof innovative technologies

305: Emissions (2016)

246

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Appendix

MATERIAL TOPICSIDENTIFIED BYBREMBO

AREAS OFLEGISLATIVEDECREE (IT)254/2016

IMPACTSREFERENCE GRISTANDARDS

Protection anddevelopment oflocal communities

SocialImpacts on the social andeconomic growth of the local
areas and communities

201: Economic
Performance (2016)

Sustainablesupply chain

SocialTransparency and involvementof the supply chain insustainable practices throughmonitoring and training
programmes

204: Procurement
Practices (2016)

BOUNDARY
LIMITATIONSBOUNDARY
LIMITATIONS

308: Supplier
Environmental
Assessment (2016)
414: Supplier Social
Assessment (2016)

Protection ofhuman rights

SocialHuman rights violations

202: Market Presence(2016)

Product safety

SocialDamage to consumers due tothe absence of product quality
and safety checks

416: Customer Healthand Safety (2016)

Increased safety of theend user through theimplementation of innovativetechnologies in products

*

Waste
management

Environmental

Soil occupation and pollution
due to non-virtuous waste
management306: Waste (2020)

Diversity, equity
and inclusion

SocialNon-compliance with equal
opportunities legislation in theworkplace405: Diversity and Equal
Opportunity (2016)

Customers

406: Non-discrimination(2016)

Data protection
and IT security

SocialPrivacy violation and loss of
sensitive data

418: Customer Privacy(2016)

Business ethics
and integrity

SocialDamage to the economic
system due to unfair businesspractices201: Economic
Performance (2016)

Customers

205: Anti-corruption(2016)
206: Anti-competitive
behaviour (2016)
415: Public Policy (2016)(*) As regards the topic in question (not directly linked to an aspect covered by GRI Standards), Brembo reports the management approach adopted and therelative indicators in the document.

Annual Sustainability Report 2023

247

Appendix

TCFD’S RECOMMENDATIONS AND BREMBO DISCLOSURESThe table below shows the TCFD’s recommendations and the correspondent sustainability disclosures relating to Brembo.

TCFD’S RECOMMENDATIONSAREADISCLOSURES REQUIRED

2022 CDP PARAGRAPH AND 2023 NFIGOVERNANCE

a. Describe the board’s oversight of climate-related risks and opportunities.

2022 CDP: C1.1b, C1.2, C1.2a2022 NFI: 2.5 “Materiality analysis”; 3.1 “Corporate governance model”; 3.4 “Internal control and risk management system”

b. Describe management’s role in assessing andmanaging climate-related risks and opportunities.

2022 CDP: C1.1b, C1.2, C1.2a2022 NFI: 2.5 “Materiality analysis”; 3.1 “Corporate governance model”; 3.4 “Internal control and risk management system”; 7.4 “Greenhouse gas emissions”

a. Describe the climate-related risks and opportunities the organisation has identified over the
short, medium, and long term.

2022 CDP: C2.1a, C2.3, C2.3a, C2.4, C2.4a, C3.1, C3.2, C3.2a, C3.2b,C3.3, C3.4
2022 NFI: 2.5 “Materiality analysis”; 3.4 “Internal control and risk
management system”; 7.3 “Energy consumption”; 7.4 “Greenhousegas emissions

b. Describe the impact of climate-related risks
and opportunities on the organisation’s businesses, strategy, and financial planning.

2022 CDP: C2.1a, C2.3, C2.3a, C2.4, C2.4a, C3.1, C3.2, C3.2a, C3.2b,C3.3, C3.4
2022 NFI: 2.5 “Materiality analysis”; 7.1 “A business model at the service of the energy transition”

c. Describe the resilience of the organisation’s
strategy, taking into consideration different climate-related scenarios, including a 2°C or lower
scenario.

2022 CDP: C2.1a, C2.3, C2.3a, C2.4, C2.4a, C3.1, C3.2, C3.2a, C3.2b,C3.3, C3.4
2022 NFI: 3.4 “Internal control and risk management system”; 7.2“The system for effective management of environmental (ISO 14001)
and energy (ISO 50001) impacts”; 7.4 “Greenhouse gas emissions”;
6.1 “Designing innovation”; 6.2 “Collaborations to reduce the environmental footprint”; 6.3 “Product innovation”

a. Describe the organisation’s processes for
identifying and assessing climate-related risks.

2022 CDP: C2.1, C2.2, C2.2a2022 NFI: 2.5 “Materiality analysis”; 3.4 “Internal control and risk
management system”

b. Describe the organisation’s processes for
managing climate-related risks.

2022 CDP: C2.1, C2.2, C2.2a2022 NFI: 2.5 “Materiality analysis”; 3.4 “Internal control and risk
management system”; 7.2 “The system for effective managementof environmental (ISO 14001) and energy (ISO 50001) impacts”; 7.5“Greenhouse gas emissions”; 7.5 “Atmospheric polluting emissions”;
7.6 “Collaborations to reduce the environmental footprint”

c. Describe how processes for identifying, assessing, and managing climate-related risks areintegrated into the organisation’s overall risk
management.

2022 CDP: C2.1, C2.2, C2.2a2022 NFI: 2.5 “Materiality analysis”; 3.4 “Internal control and risk
management system”; 7.2 “The system for effective managementof environmental (ISO 14001) and energy (ISO 50001) impacts”; 7.5“Greenhouse gas emissions”; 7.5 “Atmospheric polluting emissions”;
7.6 “Collaborations to reduce the environmental footprint”

STRATEGYRISK MANAGEMENT

248

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Appendix

TCFD’S RECOMMENDATIONSAREADISCLOSURES REQUIRED

2022 CDP PARAGRAPH AND 2023 NFIMETRICS
AND TARGETS

a. Disclose the metrics used by the organisation
to assess climate-related risks and opportunities
in line with its strategy and risk management
process.

2022 CDP: C4.1, C4.1a, C4.1b, C4.2, C4.2a, C4.2b, C6.1, C6.3, C6.5,
C6.5a, C9.1
2022 NFI: 7.2 “The system for effective management of environmental (ISO 14001) and energy (ISO 50001) impacts”; 7.3 “Energy consumption”; 7.5 “Greenhouse gas emissions”

b. Disclose Scope 1, Scope 2 and, if appropriate,
Scope 3 greenhouse gas (GHG) emissions andthe related risks.

2022 CDP: C4.1, C4.1a, C4.1b, C4.2, C4.2a, C4.2b, C6.1, C6.3, C6.5,
C6.5a, C9.1
2022 NFI: 7.2 “The system for effective management of environmental (ISO 14001) and energy (ISO 50001) impacts”; 7.3 “Energy consumption”; 7.5 “Greenhouse gas emissions”

c. Describe the targets used by the organisation
to manage climate-related risks and opportunities and performance against targets.

2022 CDP: C4.1, C4.1a, C4.1b, C4.2, C4.2a, C4.2b, C6.1, C6.3, C6.5,
C6.5a, C9.1
2022 NFI: 2.2 “Turning sustainability into action”; 3.4 “Internal control
and risk management system”

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249

Appendix

METHODOLOGICAL NOTEREPORTING STANDARDS APPLIED
Now in its seventh edition, the Consolidated Disclosure ofNon-financial Information (hereinafter also “Non-Financial
Information”, “Disclosure” or “NFI”) of the Brembo Group(hereinafter also “Brembo”, “Group”) illustrates the performances and actions taken in order to manage environmental, social and employee matters, respect for human rights,
anti-corruption and bribery matters, so as to provide stakeholders with access to accurate, thorough and transparent
view of the Company’s strategies, activities, performanceand the Group’s results in its pursuit of economic growthand business development.
This Disclosure, published annually, has been written inaccordance with Italian Legislative Decree No. 254/2016
as amended and in compliance with the Sustainability
Reporting Standards published by the Global Reporting
Initiative - GRI 2021 (with reference to the most recent
update thereof), which became effective as of 1 January
2023. These Standards are currently the most widespreadand recognised on an international level regarding non-financial reporting. In compliance with the latter, in order tofacilitate the reader in finding information within the document, pages 253-258 contain the GRI Content Index.
In the reporting process, with a view to a broader disclosure towards stakeholders, the Group has taken into
account the indications contained in the “Measuring
Stakeholder Capitalism: Towards Common Metrics andConsistent Reporting of Sustainable Value Creation” published in September 2020 by the World Economic Forumand the indicators put forward by the SASB standards.
These indicators have been clearly defined in table on
page259 and shall be construed as an addition to the disclosure drawn up pursuant to GRI Standards to comply
with the provisions of Articles 3 and 4 of Legislative Decree No. 254/16.

The information included in the non-financial report reflects the principle of materiality or relevance, an element
provided for by reference standards and characterising the
GRI standards: the issues discussed within the Disclosure
have been identified following the analysis and assessment of the most significant impacts on economy, people
and environment, including human rights, described on
pages 75-80, paragraph 2.6 “Materiality analysis” of thisdocument.
It is necessary to point out that a materiality analysis, to bevalid for the purposes of the non-financial reporting of thisfinancial year, does not take into account the Outside-in
perspective (Financial Materiality) since this procedure ison a totally voluntary basis and not subject to audit (ref.
CSRD Directive).
For disclosures published following 1 January 2023, Brembo must include in the NFI the information required by
the so-called “EU Taxonomy” legislation with regard toenvironmentally sustainable activities carried out by theGroup. In relation to this, please refer to paragraph “THE EUTAXONOMY REGULATION No. 2020/852”. In compliancewith Article 10 of the Commission Delegated Regulation(EU) 2021/2178 of 6 July 2021, such information for 2023
relates to the proportion, with respect to the total, of turnover, capital expenditure and operating expenditure of theGroup associated with Taxonomy-eligible and -aligned activities with reference to the objectives of climate change
mitigation, climate change adaptation, the sustainable use
and protection of water and marine resources, the transition to a circular economy, pollution and prevention control
and the protection and restoration of biodiversity and ecosystems, as provided for by the Annexes to the Commission
Delegated Regulation (EU) 2021/2139 of 4 June 2021, in addition to some qualitative information.

REPORTING SCOPE
The qualitative and quantitative data contained in the Consolidated Disclosure of Non-Financial Information issued
by the Brembo Group refer to the performance of the Groupduring the financial year 1 January - 31 December 2023.
The Financial Statements cover the same time scope. As
provided for by Article 4 of Legislative Decree No. 254/2016,
this Consolidated Disclosure of Non-Financial Information

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Annual Sustainability Report 2023

includes data from the parent (Brembo S.p.A.) and its subsidiaries, consolidated on a line-by-line basis. The companies consolidated in Brembo S.p.A.'s Financial Statements
using the equity method are not included.
The only exception is the environmental data, regarding
which a number of commercial companies have been ex-

Methodological Notecluded (Brembo Deutschland GmbH, Brembo Japan Co.
Ltd, Brembo Russia Llc., Brembo Scandinavia A.B.), in consideration of the fact that their impacts regarding production sites are not material (within the document, the terms"production site" or "facility" refer to manufacturing andassembly facilities).
It should be noted that the reporting scope of this Disclosure does not include the newly acquired sites: Brembo Reinsurance Ag (Switzerland), Brembo Poland Manufacturing
Sp Zoo (Poland) , Brembo Poland Heatech Sp Zoo (Poland),Brembo Thailand Ltd (Thailand).
Any further changes or limitations of the disclosure scope
relating to the material topics and impacts are appropriately indicated within the document in a footnote.
The analyses carried out before this document was prepared did not reveal any interest on the part of minority
shareholders and therefore the processing and aggregationof data has not been subject to necessary adaptations.

For the purposes of comparing or contextualising information, data from the 2021 and 2022 financial years havebeen included and duly indicated.
Independent Auditors’ opinion and audit activities did notcover the disclosures based on the SASB and WEF requirements, both given in the tables on page 259, and on the
TCFD recommendations, as per the tables on pages 248 and
249, nor the information included in paragraph 1.8 “The EU
Taxonomy Regulation No. 2020/852” on page 34 required by
Article 8 of Regulation (EU) 2020/852. It is necessary to pointout that a materiality analysis, to be valid for the purposesof the non-financial reporting of this financial year, does nottake into account the Outside-in perspective (Financial Materiality) since this procedure is on a totally voluntary basis
and not subject to audit (ref. CSRD Directive).
For information or comments about this document please
send an email to the following address:
sustainability@brembo.it.

REPORTING PROCESSThe preparation of the 2023 Consolidated Disclosureof Non-Financial Information is a real annual reporting
process, subject to inspection, analysis and approval by
several parties. Following the approval by the Board of Directors of the material topics and the related impacts, thedocument is:••prepared by the Chief CSR Officer and the relevant
work team, which coordinate and involve all the main
company functions in the phase of collecting, analysing and consolidating data, with the task of checking
and validating — each with regards to their respective
area of competence — each information included in
the Disclosure of Non-Financial Information, using the
new software implemented by the Group;
approved by the Board of Directors, which meets to approve the draft financial statements, after having beenassessed by the CSR Committee which, through theChief CSR Officer, presents it to the Audit, Risk & Sustainability Committee and, insofar as it is competent,
to the Supervisory Committee for its examination andassessment.

•

•

•

•

Brembo’s Directors are responsible for ensuring that
the Consolidated Disclosure of Non-Financial Information is written and published in accordance withcurrent legislation. Once it has been approved by thegoverning body and within the terms provided for thepresentation of the draft Financial Statements, thedraft Consolidated Disclosure of Non-Financial Information is made available to the auditors (Board of
Statutory Auditors and Independent Auditors);
submitted to limited audit by the auditing firm Deloitte
Touche T. Limited S.p.A., meaning that responsibility
for the data and information lies solely with the Brembo Group managers;
made available to Shareholders and the public within
the same terms and using the same methods provided
for the presentation of the draft Financial Statements;
published on and downloadable from the corporatewebsite.

This document was subject to a limited assurance engagement, according to the criteria indicated by the ISAE
3000 Revised standard, by Deloitte & Touche S.p.A. Audit

Annual Sustainability Report 2023

251

Appendix

was performed according to the procedures specified in
the “Independent Auditors’ Report”, included in this document. This audit includes compliance with requirements
provided for by Legislative Decree 254/2016 and the GRI
Standards. The audit does not include other reporting stand-ards and assessment of the Taxonomy-eligible and Taxonomy-aligned activities pursuant to the Commission Delegated Regulation (EU) 2021/2139 of 4 June 2021, or the analysis
according to the Outside-in perspective (financial materiality) for the purposes of the double materiality definition.

REPORTING PRINCIPLES
The following principles have been taken into consideration in defining and reporting the contents of the Consolidated Disclosure of Non-Financial Information:

SUSTAINABILITY CONTEXTACCURACY

The report has to present information concerning the impacts of the Organisation within the broader context of sustainability, on the basis of how it contributes, or intends
to contribute in future, to the improvement or worseningof economic, environmental and social conditions, developments and trends on a local, regional or global level.

The information provided in the report must be accurate
and sufficiently detailed for the stakeholders to be able toassess the impacts of the Organisation.

COMPLETENESSThe Organisation must publish reports on a periodical basis so that the data is available in time for the stakeholders to make informed decisions.

The report must cover the material topics and their perimeters to a sufficient extent to reflect impacts generated
on economy, environment and people, including with regard to human rights, to enable stakeholders to assessthem during the reporting period.
BALANCE BETWEEN POSITIVE
AND NEGATIVE ASPECTSThe Organisation must report information in an impartial
manner, providing a fair and balanced representation of
the negative and positive impacts and so as to allow theirweighted assessment. The report should avoid selections,omissions or presentation formats that could unduly or improperly influence the decision or judgment of the readerof the report.
COMPARABILITYThe Organisation must select, compile and report the information in a consistent manner. The information covered by
the report must be presented in such a way as to enable stakeholders to analyse changes to the impacts of the Organisation over time and that could support an analysis relative
to other Organisations.

252

Annual Sustainability Report 2023

TIMELINESSRELIABILITYThe Organisation must collect, record, compile, analyse andpresent the information and processes employed in writing
the report so that they can be examined and the quality
and materiality can be defined.

CLARITY
The Organisation must make the data available in sucha way that it is understandable and accessible to the stakeholders using it, through tools allowing to find information without unreasonable effort and avoiding the use oftechnical terms and abbreviations without an appropriate
explanation.

GRI Table of Contents

GRI TABLE OF CONTENTSTABLE OF CONTENTS OF THE DISCLOSURE OF NON-FINANCIAL INFORMATION “IN ACCORDANCE”
WITH THE GRI STANDARDS FOR THE FISCAL YEAR 2023

The GRI Standards applicable to Brembo Group for the Fiscal Year 2023 are illustrated below.
For this year any Sector Standard published applies to Brembo.

GRI CONTENT INDEXGRI IDDISCLOSURE

PAGE NUMBER
OR DISCLOSUREOMISSIONS*UN GLOBAL
COMPACTSDGS

GRI 2: GENERAL DISCLOSURES 2021
THE ORGANISATION AND ITS REPORTING PRACTICES

2-1

Organisation details

26-27, 92-95; Corporate Governance andOwnership Structure Report; Annual Report

2-2

Entities included in theorganisation’s sustainability
reporting250-251; Annual Report

2-3

Reporting period, frequency
and contact point251-252; The 2022 Consolidated Disclosureof Non-Financial Information (pursuant toLegislative Decree 254/2016) was publishedon 20 March 2023

2-4

Restatements of information

250-252, Any changes to the information
provided in previous documents have been
duly identified in the text through related
explanatory notes

2-5

External assurance

260-261

ACTIVITIES AND WORKERS

2-6

Activities, value chain andother business relationships

28-30,154-160,162-172;
Annual Report

2-7

Employees

12,18,128-130,134-137,227-229;
Annual Report

2-8Workers who are not
employees

229-230

2-9Governance structure
and composition

12,92-101,104-106, 226; Corporate
Governance and Ownership Structure Report2-10

Nomination and selection of
the highest governance body

98-99; Corporate Governanceand Ownership Structure Report

2-11

Chair of the highest
governance body

97; Corporate Governanceand Ownership Structure Report

2-12Role of the highest
governance body inoverseeing the managementof impacts

119-120, Corporate Governanceand Ownership Structure Report

2-13

Delegation of responsibility
for managing impacts

114-116; Corporate Governanceand Ownership Structure Report

Principle 6

GOVERNANCE

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253

Appendix

GRI IDDISCLOSURE

PAGE NUMBER
OR DISCLOSURE

2-14

Role of the highest
governance body insustainability reporting

98,100-101,226, Corporate Governanceand Ownership Structure Report

2-15

Conflicts of interest

110

2-16

Communication of criticalconcerns

115-116

2-17

Collective knowledge of thehighest governance body105-106

2-18

Evaluation of the performanceof the highest governancebody

99, 105, Report on the Remuneration
Policy for 2024 and Remuneration Paid
in 2023 of the Brembo Group

2-19

Remuneration policies

101-104, Report on the Remuneration
Policy for 2024 and Remuneration Paid
in 2023 of the Brembo Group

2-20

Process to determine
remuneration

101-104, Report on the Remuneration
Policy for 2024 and Remuneration Paid
in 2023 of the Brembo Group

2-21

Annual total compensation
ratio

Report on the Remuneration Policy
for 2024 and Remuneration Paid
in 2023 of the Brembo Group

2-22

Statement on sustainable
development strategy

6-7

2-23

Policy commitments

109-117

2-24

Embedding policy
commitments

109-117

2-25

Processes to remediate
impacts

111-114,137-140,142-145,165-167,178-181

2-26

Mechanisms for seeking
advice and raising concerns

115-116,137

Principle 10

2-27

Compliance with laws andregulations

245

Principles
7, 8

2-28

Membership associations

9, 71-74

2-29

Approach to stakeholder
engagement

67-70,133-134,172-177

2-30

Collective bargaining
agreements

59,137

GRI 3: MATERIAL TOPICS 2021

3-1

254

Process to determinematerial topics

Annual Sustainability Report 2023

75-76

OMISSIONS*UN GLOBAL
COMPACTThe organisationis committed
to provide thisinformation as
required by the GRI
indicator by thedate of publicationof the 2024 NFIPrinciple 10

SDGS

GRI Table of Contents

GRI IDDISCLOSURE

PAGE NUMBER
OR DISCLOSURE

3-2

List of material topics

77-80, 253-258

OMISSIONS*UN GLOBAL
COMPACTSDGS

CATEGORY: ECONOMIC PERFORMANCETOPICS: PROTECTION AND DEVELOPMENT OF LOCAL COMMUNITIES

3-3

Management of material
topics77-82, 210-213

201-1

Direct economic value
generated and distributed

211

TOPICS: BUSINESS ETHICS AND INTEGRITY

3-3

Management of material
topics77-82, 109-120

201-4

Financial assistance received
from government

211

205-2

Communication and training
about anti-corruption policies
and procedures

114-117, Corporate Governanceand Ownership Structure Report

Principle 10

205-3

Confirmed incidents ofcorruption and actions taken

116

Principle 10

206-1

Legal actions for anticompetitive behaviour, antitrust, and monopoly practices

111

415-1

Political contributions

In 2022, Brembo did not grant politicalor financial contributions, nor contributions
in kindPrinciple 10

MATERIAL TOPIC: PROTECTION OF HUMAN RIGHTS

3-3

Management of material
topics77-82, 114, 124, 158

202-2

Proportion of senior
management hired fromthe local community

137

Principle 6

MATERIAL TOPIC: SUSTAINABLE SUPPLY CHAIN

3-3

Management of material
topics77-82, 124, 156-169

204-1

Proportion of spendingon local suppliers

155

308-1

New suppliers that werescreened using environmental
criteria

157

Principles
7, 8

414-1

New suppliers that werescreened using social criteria

157

Principles
2, 4, 5

Annual Sustainability Report 2023

255

Appendix

GRI IDDISCLOSURE

PAGE NUMBER
OR DISCLOSUREOMISSIONS*UN GLOBAL
COMPACT

CATEGORY: ENVIRONMENTAL PERFORMANCE
MATERIAL TOPIC: ENERGY EFFICIENCYMATERIAL TOPIC: PROTECTION OF WATER RESOURCES
MATERIAL TOPIC: PROTECTION OF BIODIVERSITY

3-3

Management of material
topics77-82, 123, 162-163, 165, 188-193, 201-202,
207

302-1

Energy consumption within
the organisation

194

Principles
7, 8

302-4

Reduction of energy
consumption

193

Principles
8, 9

303-1

Interactions with water
as a shared resource

201-202

Principles
7, 8

303-2

Management of water
discharge related impacts

201-202

Principle 8

303-3

Water withdrawal

202

Principle 8

303-4

Water discharge

203-204

Principle 8

303-5

Water consumption

204; Water storage does not have asignificant impact in relation with the use ofwater resources

Principle 8304-2

Significant impacts ofactivities, products andservices on biodiversity

207

Principle 15

MATERIAL TOPIC: GREENHOUSE GAS EMISSIONS
MATERIAL TOPIC: POLLUTING EMISSIONS

3-3

Management of material
topics77-82, 123, 162-163, 165, 188-190,
195-196,198, 20

305-1

Direct (Scope 1) GHG
emissions196-197

Principles
7, 8

305-2

Energy indirect (Scope 2) GHG
emissions196-197

Principles
7, 8

305-3

Other indirect (Scope 3) GHG
emissions196-197

Principles
7, 8

305-5

Reduction of GHG emissions

188, 192, 195

Principles
8, 9

305-7

Nitrogen oxides (NOx), sulfur
oxides (SOx), and othersignificant air emissions

200

Principles
7, 8

MATERIAL TOPIC: WASTE MANAGEMENT

3-3

Management of material
topics77-82, 122-123, 205-206

306-1

Waste generation andsignificant waste-related
impacts

205-206

256

Annual Sustainability Report 2023

SDGS

GRI Table of Contents

GRI IDDISCLOSURE

PAGE NUMBER
OR DISCLOSUREOMISSIONS*UN GLOBAL
COMPACT

306-2

Management of significant
waste-related impacts

205-206

Principle 8

306-3

Waste generated

206

Principle 8

306-4

Waste diverted from disposal

206

306-5

Waste directed to disposal

206

SDGS

CATEGORY: SOCIAL PERFORMANCE
MATERIAL TOPIC: TRAINING AND DEVELOPMENT OF PERSONNEL
MATERIAL TOPIC: WELLBEING OF PERSONNEL

3-3

Management of material
topics12, 77-82, 124-125, 128-132, 230-231

401-1

New employee hires andemployee turnover

129-130, 230-231

Principle 6

404-1

Average hours of training peryear per employee

139

Principle 6

404-3

Percentage of employees
receiving regular performanceand career development
reviews

140-141

Principle 6

MATERIAL TOPIC: WORKERS’ HEALTH AND SAFETY

3-3

Management of material
topics12, 77-82, 113, 124-125, 142-151, 232-237,
240-245

403-1

Occupational health andsafety management system

12, 142-151, 240-245

403-2

Hazard identification, risk
assessment, and incident
investigation

142-145

403-3

Occupational health services

143-144, 149-150

403-4

Worker participation,
consultation, andcommunication on
occupational health and safety

149

403-5

Worker training on
occupational health and safety

146-148403-6

Promotion of worker health137, 148-150

403-7

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

151

Annual Sustainability Report 2023

257

Appendix

GRI IDDISCLOSURE

PAGE NUMBER
OR DISCLOSURE

403-8

Workers covered by an
occupational health and safety
management system

143

403-9

Work-related injuries

145-146, 232-233, 235-236

403-10Work-related ill health146, 235, 237

OMISSIONS*UN GLOBAL
COMPACT

MATERIAL TOPIC: DIVERSITY, EQUITY AND INCLUSION

3-3

Management of material
topics12, 77-82, 134-137, 226

Principle 6405-1

Diversity of governance bodies
and employees

12, 100-101, 134-136, 226

Principle 6

406-1

Incidents of discrimination andcorrective actions taken

115-116, 137

Principles 1,2, 6

MATERIAL TOPIC: PRODUCT SAFETY

3-3

Management of material
topics13, 77-82, 178-181

416-1

Assessment of the health andsafety impacts of product andservice categories

178-181

MATERIAL TOPIC: DATA PROTECTION AND IT SECURITY
MATERIAL TOPIC: DIGITAL TRANSFORMATION ROADMAP

3-3

Management of material
topics10-11, 20-23, 77-82

418-1

Substantiated complaints
regarding breaches ofcustomer privacy and losses ofcustomer data111

MATERIAL TOPICS THAT ARE NOT COVERED BY GRI INDICATORS
MATERIAL TOPIC: ENVIRONMENTALLY SUSTAINABLE PRODUCT

3-3

Management of material
topics77-82, 162-172* For omissions, please provide the omitted information, the reason and the explanation.

258

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SDGS

GRI Table of Contents

SASB - AUTO PARTSTOPICSASB IDDISCLOSURE

PAGE NUMBER OR DISCLOSURE

Energy Management

TR-AP-130a1

1) Total energy consumed,(2) Percentage grid electricity,(3) Percentage renewable

194

Waste Management

TR-AP-150a1(1) T otal amount of wastefrom manufacturing,(2) Percentage hazardous,(3) Percentage recycled

205

WEF MEASURING STAKEHOLDER CAPITALISM - CORE METRICSTOPICDISCLOSURE

PAGE NUMBER OR DISCLOSURE

Quality of governing body

Governance body composition

98-101

Ethical behaviour

Anti-corruption

109-110, 114-117, 125Protected ethics advice and reporting mechanisms

115-116, 137

Risk and opportunity oversightIntegrating risk and opportunity into business process

122-125

Climate change

Greenhouse gas (GHG) emissions

196-197

TFCD implementation

248-249

Freshwater availability

Water consumption and withdrawal in water-stressedareas

201-202

Dignity and equality

Diversity and inclusion

92, 98-99, 136, 226

Community and social vitality

Total tax paid

117-118, 238-239; Paragraph Section“Performance of Brembo Companies”
included in the Directors’ Report on
Operations

Employment and wealthgeneration

Absolute number and rate of employment

128-129, 228-230

Economic contribution

211

Financial investment contribution

211

Annual Sustainability Report 2023

259

Deloitte & Touche S.p.A.
Via Stezzano, 87
24126 Bergamo
Kilometro Rosso - Gate 4
ItaliaTel: + 39 02 83327035
Fax: + 39 035 219466
www.deloitte.it

INDEPENDENT AUDITOR’S REPORTON THE CONSOLIDATED NON-FINANCIAL STATEMENT PURSUANT TO ARTICLE 3,
PARAGRAPH 10 OF LEGISLATIVE DECREE No. 254 OF DECEMBER 30, 2016
AND ART. 5 OF CONSOB REGULATION N. 20267 OF JANUARY 2018
To the Board of Directors of
Brembo S.p.A.
Pursuant to article 3, paragraph 10, of the Legislative Decree no. 254 of December 30, 2016 (hereinafter“Decree”) and to article 5, paragraph 1, letter g) of the CONSOB Regulation n. 20267/2018, we havecarried out a limited assurance engagement on the Consolidated Non-Financial Statement of Brembo
S.p.A. and its subsidiaries (hereinafter “Brembo Group” or “Group”) as of December 31, 2023 preparedon the basis of art. 4 of the Decree, and approved by the Board of Directors on March 5, 2024
(hereinafter “NFS”).
Our limited assurance engagement does not extend to the information required by art. 8 of theEuropean Regulation 2020/852 included in the paragraph “European Taxonomy - Regulation (EU)2020/852”.
Responsibility of the Directors and the Board of Statutory Auditors for the NFS
The Directors are responsible for the preparation of the NFS in accordance with articles 3 and 4 of theDecree and the “Global Reporting Initiative Sustainability Reporting Standards” established by GRI Global Reporting Initiative (hereinafter “GRI Standards”), which they have identified as reporting
framework.
The Directors are also responsible, within the terms established by law, for such internal control as they
determine is necessary to enable the preparation of NFS that is free from material misstatement,
whether due to fraud or error.
The Directors are moreover responsible for defining the contents of the NFS, within the topics specified
in article 3, paragraph 1, of the Decree, taking into account the activities and characteristics of theGroup, and to the extent necessary in order to ensure the understanding of the Group’s activities, its
trends, performance and the related impacts.
Finally, the Directors are responsible for defining the business management model and the organisationof the Group’s activities as well as, with reference to the topics detected and reported in the NFS, for thepolicies pursued by the Group and for identifying and managing the risks generated or undertaken by theGroup.
The Board of Statutory Auditors is responsible for overseeing, within the terms established by law, thecompliance with the provisions set out in the Decree.
Ancona Bari Bergamo Bologna Brescia Cagliari Firenze Genova Milano Napoli Padova Parma Roma Torino Treviso Udine Verona
Sede Legale: Via Tortona, 25 - 20144 Milano | Capitale Sociale: Euro 10.328.220,00 i.v.
Codice Fiscale/Registro delle Imprese di Milano Monza Brianza Lodi n. 03049560166 - R.E.A. n. MI-1720239 | Partita IVA: IT 03049560166
Il nome Deloitte si riferisce a una o più delle seguenti entità: Deloitte Touche Tohmatsu Limited, una società inglese a responsabilità limitata (“DTTL”), le member firm aderenti al suo network e
le entità a esse correlate. DTTL e ciascuna delle sue member firm sono entità giuridicamente separate e indipendenti tra loro. DTTL (denominata anche “Deloitte Global”) non fornisce servizi aiclienti. Si invita a leggere l’informativa completa relativa alla descrizione della struttura legale di Deloitte Touche Tohmatsu Limited e delle sue member firm all’indirizzo
www.deloitte.com/about.
© Deloitte & Touche S.p.A.

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Independent Auditors’ Assurance Report

2

Auditor’s Independence and quality control
We have complied with the independence and other ethical requirements of the International Code of
Ethics for Professional Accountants issued by the International Ethics Standards Board for Accountants,
which is founded on fundamental principles of integrity, objectivity, professional competence and due
care, confidentiality and professional behaviour.
During the year covered by this assurance engagement, our auditing firm applied International Standard
on Quality Control 1 (ISQC Italia 1) and, accordingly, maintained a comprehensive system of quality
control including documented policies and procedures regarding compliance with ethical requirements,
professional standards and applicable legal and regulatory requirements.
Auditor’s responsibility
Our responsibility is to express our conclusion based on the procedures performed about the complianceof the NFS with the Decree and the GRI Standards. We conducted our work in accordance with thecriteria established in the “International Standard on Assurance Engagements ISAE 3000 (Revised) –Assurance Engagements Other than Audits or Reviews of Historical Financial Information” (hereinafter“ISAE 3000 Revised”), issued by the International Auditing and Assurance Standards Board (IAASB) for
limited assurance engagements. The standard requires that we plan and perform the engagement toobtain limited assurance whether the NFS is free from material misstatement. Therefore, the procedures
performed in a limited assurance engagement are less than those performed in a reasonable assurance
engagement in accordance with ISAE 3000 Revised, and, therefore, do not enable us to obtain assurance
that we would become aware of all significant matters and events that might be identified in areasonable assurance engagement.
The procedures performed on NFS are based on our professional judgement and included inquiries,
primarily with company personnel responsible for the preparation of information included in the NFS,
analysis of documents, recalculations and other procedures aimed to obtain evidence as appropriate.
Specifically, we carried out the following procedures:
1. analysis of relevant topics with reference to the Group’s activities and characteristics disclosed in the
NFS, in order to assess the reasonableness of the selection process in place in light of the provisionsof art.3 of the Decree and taking into account the adopted reporting standard;
2. analysis and assessment of the identification criteria of the consolidation area, in order to assess its
compliance with the Decree;
3. comparison between the financial data and information included in the NFS with those included in
the consolidated financial statements of the Brembo Group;

Annual Sustainability Report 2023

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3

4. understanding of the following matters:• business management model of the Group’s activities, with reference to the management of the
topics specified by article 3 of the Decree;• policies adopted by the entity in connection with the topics specified by article 3 of the Decree,achieved results and related fundamental performance indicators;• main risks, generated and/or undertaken, in connection with the topics specified by article 3 of theDecree.
Moreover, with reference to these matters, we carried out a comparison with the information
contained in the NFS and the verifications described in the subsequent point 5;
5. understanding of the processes underlying the origination, recording and management of qualitativeand quantitative material information included in the NFS.
In particular, we carried out interviews and discussions with the management of Brembo S.p.A. andwith the employees of the subsidiaries Brembo Poland Spolka Zo.O., Brembo Nanjing Brake Systems
Co. Ltd., Brembo Huilian (Langfang) Brake Systems Co. Ltd. , Brembo (Nanjing) Automobile
Components Co. Ltd., Jiaxing Ciju Control Systems Co. Ltd. and we carried out limited documentary
verifications, in order to gather information about the processes and procedures which support thecollection, aggregation, elaboration and transmittal of non-financial data and information to thedepartment responsible for the preparation of the NFS.
In addition, for material information, taking into consideration the Group’s activities andcharacteristics:• at the parent company’s and subsidiaries’ level:a) with regards to qualitative information included in the NFS, and specifically with reference tothe business management model, policies applied and main risks, we carried out interviews
and gathered supporting documentation in order to verify its consistency with the available
evidence;b) with regards to quantitative information, we carried out both analytical procedures and limited
verifications in order to ensure, on a sample basis, the correct aggregation of data;• for the following companies and sites, Mapello “Cast Iron Foundry” and “Aluminium Foundry”
plants for Brembo S.p.A. and Dabrowa “Disc Machining” and “Cast Iron Foundry” plants for
Brembo Poland Spolka Zo.O, which we selected based on their activities, their contribution to theperformance indicators at the consolidated level and their location, we carried out site visits,
during which we have met their management and have gathered supporting documentation withreference to the correct application of procedures and calculation methods used for theindicators.

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Independent Auditors’ Assurance Report

4Conclusion
Based on the work performed, nothing has come to our attention that causes us to believe that the NFSof the Brembo Group as of December 31, 2023 is not prepared, in all material respects, in accordancewith articles 3 and 4 of the Decree and the GRI Standards.
Our conclusion on the NFS of the Brembo Group does not extend to the information required by art. 8 of
the European Regulation 2020/852 included in the paragraph “European Taxonomy - Regulation (EU)2020/852”.
DELOITTE & TOUCHE S.p.A.
Signed by
Stefano Dell’Orto
Partner
Bergamo, Italy
March 21, 2024

This report has been translated into the English language solely for the convenience of international readers.

Annual Sustainability Report 2023

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BREMBO SpAHeadquarters c/o Parco Scientifico Tecnologico Kilometro Rosso
Viale Europa, 2 - 24040 Stezzano (BG) - Italy
Tel. +39 035 605.2111
www.brembo.com
E-mail: press@brembo.it - ir@brembo.it - sustainability@brembo.it

Editorial consulting: Lemon Comunicazione (Bergamo)
Graphic work: PoliedroStudio srl (Telgate - Bergamo)
Typesetting: zero3zero9 srl (Milan)
Translation: Koinè (Trieste)
Printing: Sanco S.r.l. (Corbetta - Milan)

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