Piaggio Group: Piaggio & C : FY (Annual Report 2024 Consolidated Sustainability Statement)

CONSOLIDATED SUSTAINABILITY STATEMENT CONSOLIDATED SUSTAINABILITY STATEMENT GENERAL INFORMATION 70 ENVIRONMENTAL INFORMATION 122 SOCIAL INFORMATION 160 GOVERNANCE INFORMATION 202 CERTIFICATION OF SUSTAINABILITY REPORT PURSUANT TO ARTICLE 81-TER, PARAGRAPH 1, OF CONSOB REGULATION NO. 11971 OF 14 MAY 1999 AS AMENDED 213 INDEPENDENT AUDITORS' REPORT ON CONSOLIDATED SUSTAINABILITY STATEMENT - LEGISLATIVE DECREE NO. 125 OF 6 SEPTEMBER 2024 214 Consolidated General information Certification of Sustainability Report pursuant to Article 81-ter, Sustainability Statement Environmental information paragraph 1, of Consob Regulation No. 11971 of 14 May 1999 as amended Social information Independent Auditors' Report on Consolidated Sustainability Governance information Statement - Legislative Decree No. 125 of 6 September 2024 GENERAL INFORMATION BASIS FOR PREPARATION Basis for preparation This document, the Consolidated Sustainability Statement (hereafter the "document") is published by Piaggio C. S.p.A. (hereafter "Piaggio" or the "Group") in application of Legislative Decree 125 of 6 September 2024 (transposing the Corporate Sustainability Reporting Directive (CSRD - Directive 2022/2464/EU) of the European Parliament, amending Directive 2013/34/EU, concerning non-financial disclosure requirements for large companies). Reporting Period Financial year 2024 (1 January to 31 December 2024). Reporting Scope The scope of the information and data in the Sustainability Report comprises the Companies consolidated on a line-by-line basis in the Consolidated Financial Statements of the Piaggio Group. This Consolidated Sustainability Statement encompasses the value chain, with respect to policies and actions concerning key impacts, risks, and opportunities, as well as figures for Scope 3 GHG 20 emissions. The Group has not used the option to omit a specific piece of information corresponding to intellectual property know-how or the results of innovation. It has also not used the exemption from disclosure of impending developments or matters in the course of negotiation, as provided for in articles 19a (3) and 29a (3) of Directive 2013/34/EU. Time horizons Unless otherwise specified in the relevant section, the time horizons used in this document are in line with ESRS: i) Short-term: within 1 year; ii) Medium-term: within 5 years; iii) Long-term: over five years. Metrics subject to a high level of uncertainty Where metrics face significant measurement uncertainty, in the reference paragraph, we have clearly outlined the assumptions, proxies, and calculation methods in the relevant section. In this regard, it should be noted in particular that the Scope 3 GHG emissions indicator falls into this case. The Group is assessing whether and how it is possible to retrieve and systematise the data currently being estimated. 20 GHG: Greenhouse gases. 70 PIAGGIO GROUP Consolidated General information Certification of Sustainability Report pursuant to Article 81-ter, Sustainability Statement Environmental information paragraph 1, of Consob Regulation No. 11971 of 14 May 1999 as amended Social information Independent Auditors' Report on Consolidated Sustainability Governance information Statement - Legislative Decree No. 125 of 6 September 2024 Changes in reporting and presentation of information and reporting Basis for preparation errors in previous periods As stated, this document has been prepared for the first time in accordance with the European Sustainability Reporting Standard (ESRS). Figures for the year 2023, where available, are given for comparative purposes only. Any restatements of data from previous years with respect to published figures, due to improvements in the collection and reporting process, are clearly indicated as such. In some cases, data could be affected by rounding off defects due to the fact that figures are represented in thousands/millions; changes and percentages are calculated based on specific data. Disclosures stemming from other legislation or generally accepted sustainability reporting pronouncements This sustainability report does not include any additional information arising from applicable legislation, with the exception of the information referred to in Article 8 of Regulation (EU) 2020/852 of the European Parliament included in the section "The European Taxonomy". Materiality threshold of monetary amounts related to the actions In accordance with the metrics applied in the ERM analysis and the materiality threshold determined as of 31 December 2024 for transactions involving related parties, the Group has recognised that transactions surpassing €10 million are of significant financial importance. It should be noted that the only actions that exceed this threshold are some of those described within the chapters "Climate change" and "Pollution". 71 PIAGGIO GROUP Consolidated General information Certification of Sustainability Report pursuant to Article 81-ter, Sustainability Statement Environmental information paragraph 1, of Consob Regulation No. 11971 of 14 May 1999 as amended Social information Independent Auditors' Report on Consolidated Sustainability Governance information Statement - Legislative Decree No. 125 of 6 September 2024 List of disclosure requirements included in the Sustainability Report Basis for preparation DISCLOSURE REQUIREMENT PARAGRAPH GENERAL DISCLOSURES ESRS 1 BP-1 General basis for preparation of sustainability statements General information - Basis for preparation ESRS 2 BP-2 Disclosures in relation to specific circumstances General information - Basis for preparation ESRS 2 GOV-1 The role of the administrative, management and supervisory Governance - The role of the administrative, management and supervisory bodies bodies ESRS 2 GOV-2 Information provided to and sustainability matters addressed Governance - The role of the administrative, management and supervisory by the undertaking's administrative, management and bodies supervisory bodies ESRS 2 Integration of sustainability-related performance in incentive Governance - Incentive Systems and Remuneration Policy for Members of the GOV-3 schemes Administrative, Management and Supervisory Bodies ESRS 2 Statement on due diligence Governance - The system for responsible business management GOV-4 ESRS 2 Risk management and internal controls over sus-tainability Governance - Risks and internal controls on sustainability reporting GOV-5 reporting ESRS 2 SBM-1 Strategy, business model and value chain Strategy - The Business Model ESRS 2 SBM-2 Interests and views of stakeholders Strategy - Expectations and ways of involving stakeholders ESRS 2 SBM-3 Material impacts, risks and opportunities and their Strategy - Materiality Analysis interaction with strategy and business model ESRS 2 IRO-1 Description of the processes to identify and assess material Strategy - Materiality Analysis impacts, risks and opportunities ESRS 2 IRO-2 Disclosure requirements in ESRS covered by the Strategy - Materiality Analysis undertaking's sustainability statement ESRS 2 Policies adopted to manage material sustainability matters Please refer to the Topical Standard pages MDR-P ESRS 2 Actions and resources in relation to material sustainability Please refer to the Topical Standard pages MDR-A matters ESRS 2 Metrics in relation to material sustainability matters Please refer to the Topical Standard pages MDR-M ESRS 2 Tracking effectiveness of policies and actions through targets Please refer to the Topical Standard pages MDR-T E1 CLIMATE CHANGE ESRS 2 Integration of sustainability-related performance in incentive GOV-3 schemes Governance - Incentive Systems and Remuneration Policy for Members of the Administrative, Management and Control Bodies E1-1 Transition plan for climate change mitigation Climate Change - Decarbonisation Plan ESRS 2 SBM-3 Material impacts, risks and opportunities and their Climate Change - Environmental management systems interaction with strategy and business model ESRS 2 IRO-1 Description of the processes to identify and assess material Climate Change - Environmental management systems climate-related impacts, risks and opportunities E1-2 - MDR-P Policies related to climate change mitigation and adaptation Climate Change - Environmental management systems E1-3 - MDR-A Actions and resources in relation to climate change policies Climate Change - Decarbonisation Plan E1-4 - MDR-T Targets related to climate change mitigation and adaptation Climate Change - Decarbonisation Plan E1-5 Energy consumption and mix Climate Change - Energy consumption E1-6 Gross Scopes 1, 2, 3 and Total GHG emissions Climate Change - GHG emissions E1-7 GHG removals and GHG remediation projects financed Climate Change - GHG removals and GHG mitigation projects through carbon credits E1-8 Internal carbon pricing Climate Change - Internal carbon pricing E1-9 Anticipated financial effects from material physical and Phase In transition risks and potential climate-related opportunities 72 PIAGGIO GROUP Consolidated General information Certification of Sustainability Report pursuant to Article 81-ter, Sustainability Statement Environmental information paragraph 1, of Consob Regulation No. 11971 of 14 May 1999 as amended Social information Independent Auditors' Report on Consolidated Sustainability Governance information Statement - Legislative Decree No. 125 of 6 September 2024 Basis for preparation DISCLOSURE REQUIREMENT PARAGRAPH E2 POLLUTION ESRS 2 IRO-1 Description of the processes to identify and assess material Strategy - Materiality Analysis pollution-related impacts, risks and opportunities E2-1 - MDR-P Policies related to pollution Pollution - Existing Policies E2-2 - MDR-A Actions and resources related to pollution Pollution - Actions and resources related to pollutions E2-3 - MDR-T Targets related to pollution Pollution - Pollution-related targets E2-4 Pollution of air, water and soil Pollution - Significant emissions E2-6 Anticipated financial effects from