Biesse S.p.A.

Governance roles

Reference: page 43.

The Board of Directors (BoD) has seven members, one executive and six non-executive (85.7% non-executive); there is no employee representation on administrative, management or supervisory bodies. Women are 57% of the BoD.

Bodies overseeing impacts, risks and opportunities (IROs) are the BoD, the Control, Risk and Sustainability Committee (CCRS) and the Board of Statutory Auditors, supported by an ESG function (coordinated by an ESG Manager) and a Risk Manager. Senior Management (directors reporting to the CEO) identifies and shares IROs in their area of responsibility with the ESG and Risk departments. Risk identification follows an Enterprise Risk Management Policy inspired by "Enterprise Risk Management – Integrated with Strategy and Performance" and UNI 31000:2018, extended to ESG risks. Board members include university professors specialising in sustainability.

Information to, and topics addressed by, the administrative bodies

Reference: page 43.

The CCRS, established within the BoD, oversees the IRO management process, liaising with the ESG Manager on a half-yearly basis. Senior management ensures adequate processes to identify IROs and assess policy/action effectiveness. The CCRS monitors business risks and their updating quarterly.

On 14 May 2025 the BoD resolved to withdraw the 2024-2026 Three-Year Plan (which included the Sustainability Plan), reserving the right to adopt a new plan; the ESG strategic objectives already set were confirmed for 2025, and new sustainability targets for 2026-2028 were incorporated into the new Strategic Plan. In 2025 the CCRS approved the material issues arising from the IROs reported in this statement.

Sustainability in incentive schemes

Reference: page 45.

For 2025 senior management and their direct reports carry a CSR Index target in their short-term incentive scheme, calculated as the percentage reduction in tonnes of CO2e (Scope 1 and 2) versus base year 2019. The CSR Index weighs 10% of total variable remuneration; if the minimum level is not reached the target-related bonus is zero, and above target it is capped via linear interpolation up to the maximum. No incentive scheme applies to the Board of Directors, Board Committees or Board of Statutory Auditors. CSR Index targets are proposed by the Remuneration Committee, approved by the BoD, and measured annually by the Committee.

Statement on due diligence

Reference: page 45.

Biesse describes a due diligence process comprising: ESG objectives integrated into the Three-Year Plan and strategic projects with senior management and relevant departments (cross-referenced to E1 and G1); a structured materiality analysis identifying actual/potential impacts, risks and opportunities across the value chain; prevention and mitigation measures defined from the IRO analysis, including ESG criteria in supplier qualification and monitoring (cross-referenced to G1 and S2); periodic monitoring of measures through performance indicators and internal control mechanisms; and results communicated through the Consolidated Sustainability Statement itself.

Risk management and internal controls over sustainability reporting

Reference: page 45.

The Internal Control and Risk Management System (SCIGR) follows the Corporate Governance Code promoted by Borsa Italiana and has, from 2024, gradually extended to the risks and controls relevant to the Consolidated Sustainability Statement. During 2025 preliminary analyses assessed the design adequacy and applicability of identified controls (referring to FY2024); the company intends to complete and formalise these controls in future years. The main risks identified concern estimation/methodological uncertainty in indicators and the need to progressively strengthen Double Materiality tooling, plus a risk of misalignment between the sustainability statement and other market-facing documents, mitigated through a centralised data-collection system.

Strategy, business model and value chain

Reference: page 46.

The 2024-2026 Sustainability Plan's ESG objectives were confirmed for 2025 (50% Scope 1+2 CO2 reduction vs 2019 by 2030; 60% of Biesse S.p.A. spend ESG-assessed by 2026). In 2026 the BoD approved a new 2026-2028 Sustainability Plan built on three drivers - Planet (decarbonisation), Product (responsible design) and People - with a new 2023 baseline and targets including -25% Scope 1+2 GHG by 2028, -5% tCO2eq/vehicle sold (Scope 3 use-phase) by 2028, ISO 14001/45001/50001 certifications, and ESG verification of 50% of Italian strategic-supplier spend. The value chain runs from raw-material and component suppliers through engineering/R&D, production, logistics/distribution and after-sales support.

Interests and views of stakeholders

Reference: page 49.

Biesse maps shareholders/investors, customers, the financial community, employees, suppliers, media, public administration, trade unions, local communities, and universities. For 2025, suppliers, customers and universities were the external stakeholders directly involved in the materiality process, through hybrid workshops and anonymous questionnaires (suppliers/customers) and direct researcher questionnaires (universities). Stakeholder views feed into IRO identification and the materiality-threshold assessment itself, not only a listening exercise. The CCRS and Board of Statutory Auditors receive half-yearly updates on the Double Materiality and stakeholder-engagement process.

Material impacts, risks and opportunities and their link to strategy

Reference: pages 51-52.

Material ESRS topics for 2025 are E1 Climate change, E2 Pollution (air only), E5 Circular economy, S1 Own workforce, S2 Workers in the value chain, S3 Affected communities, S4 Consumers and end-users, and G1 Business conduct. Compared with 2024, the DMA excluded soil and water pollution and substances of concern "as these are no longer considered material in light of the evidence that emerged from the IRO assessment process" (page 52). "All identified material topics are covered by the Disclosure Requirements set out in the ESRS standards; therefore, the Group has not used entity-specific disclosures." Current financial effects from material risks/opportunities "were not significant for the current financial year" and triggered no balance-sheet adjustments.

Process to identify and assess material IROs

Reference: page 53.

A four-phase process: (1) context analysis - benchmarking, macro-trend review and value-chain mapping against ESRS 1 Appendix A AR16; (2) stakeholder identification; (3) IRO identification through stakeholder involvement, covering own operations, upstream and downstream; (4) assessment - impacts rated 1-5 for severity/magnitude and probability by stakeholders and Senior Management, risks/opportunities assessed by the Group CFO (and the India CFO for the Indian perimeter) against EBITDA/revenue effect. An initial risk list is drawn from the ERM register filtered for ESG relevance. "The Double Materiality process has not undergone any changes compared to the one implemented in 2024," though materiality thresholds were updated.

Disclosure requirements covered by the sustainability statement

Reference: pages 34-39.

Biesse prints a dedicated "Table of Contents - Disclosure Requirements" (pages 34-39) stating: "The following table of contents lists the reporting requirements in the ESRS standards and relevant to Biesse, which guided the preparation of the Consolidated Sustainability Statement." It lists, with page references, BP-1/BP-2, all ten ESRS 2 GOV/SBM/IRO disclosures, and every topical DR Biesse reports under E1 (through E1-6), E2 (through E2-4), E5 (through E5-5), S1 (S1-1 to S1-17), S2 (S2-1 to S2-5), S3 (S3-1 to S3-5), S4 (S4-1 to S4-5) and G1 (G1-1, G1-2, G1-3, G1-4, G1-6). It omits E1-7, E1-8, E1-9, E2-5, E2-6, E5-6 and G1-5, all of E3 and E4. This table is the index used to classify every disclosure requirement in this file.

Transition plan for climate change mitigation

Reference: page 58.

"At present, the company does not have a formally adopted transition plan. This will be integrated at a later date in order to prepare the transition plan for climate change mitigation by 2029 in accordance with the CSDD." The confirmed 2026-2028 Sustainability Plan sets -25% tCO2eq Scope 1+2 (market-based) vs 2023 baseline and -5% tCO2eq/vehicle sold for Scope 3 vs 2025 baseline, footnoted "not currently aligned with 1.5°C." Mitigation levers: production-site energy efficiency, green-energy purchase, and a gradual hybrid/plug-in fleet transition. Locked-in emissions are tied to machines powered by non-renewable energy once in customer use, and to steel/aluminium production. No coal, oil or gas investments were made during the period; Biesse is excluded from Regulation (EU) 2022/2453 and not subject to EU Paris-aligned Benchmark exclusion criteria.

Identification of climate-related risks and scenario analysis

Back-filled from ESRS 2 IRO-1, where this content is disclosed in the FY2025 report (pages 55-58). This disclosure requirement did not exist under the 2023 ESRS the report was prepared against.

Biesse classifies climate risks as physical (further split into acute/chronic hazards such as storms, floods, heavy rainfall, drought and landslides) and transition risks (TCFD, 2017), assessed using "dedicated software" over 2030 and 2050 horizons across production sites, commercial offices and certain strategic suppliers.

Physical risk scenarios: IPCC RCP 2.6, RCP 4.5 and RCP 8.5 - the last implying "global temperatures are estimated to rise by approximately +4.4°C compared to pre-industrial levels by 2100" with no mitigation action, satisfying the high-emission-scenario requirement.

Transition risk scenarios: "various scenario analyses prepared by" NGFS and IEA, "including the scenario in which the climate transition occurs in a disorderly, delayed manner and with much stricter policies," over short/medium/long-term horizons. The report does not name a specific 1.5°C-aligned, no-or-limited-overshoot scenario (e.g. an NGFS Net Zero 2050 pathway) for transition risk - that element of paragraph 17(a)(ii) is not evidenced.

Resilience in relation to climate change

Back-filled from ESRS 2 IRO-1/SBM-3, where this content is disclosed in the FY2025 report (pages 56-58). This disclosure requirement did not exist under the 2023 ESRS the report was prepared against.

"By conducting the above analyses, Biesse has assessed its strategy in terms of resilience against both physical and transitional risks, demonstrating its adequacy in addressing climate change challenges in the short and medium term" (pages 57-58). Resilience is said to be supported by "a business model based on diversification, industrial clusters in different geographical areas and technological development." The climate and transition risk analysis is refreshed alongside the Group's general risk analysis, which the report frames as ensuring "constant alignment between the Group's risk assessments and short and medium term strategies." No separate uncertainty disclosure or quantified capacity-to-adjust analysis (ESRS ¶19(b)-(c)) is given; the statement elsewhere notes "information relating to the resilience of the Group's strategy and business model... is addressed across the individual chapters" (page 52).

Policies related to climate change mitigation and adaptation

Reference: page 59.

Since 2024 an integrated Quality, Safety and Environment policy sets common Group-wide guidelines for employees, contractors and those working on Biesse's behalf, addressing climate mitigation, energy efficiency, renewable-energy adoption and resource preservation. The policy is monitored through strategic projects and the ISO 14001:2015-certified Environmental Management System at Biesse S.p.A., Biesse Tooling, Mectoce and Biesse India. It is approved by the Group's BoD and published on the Group website.

Actions and resources related to climate change mitigation

Reference: pages 59-60.

2024-2026 Plan actions: solar panels installed at Nelamangala (India) in 2024; transition to a hybrid fleet; purchase of renewable energy. Pesaro hosts photovoltaic plants (~16,500m2, 1,265 kWp) and Nelamangala 200 kWp, together avoiding "more than 560 tCO2e"; ~70% of the corporate fleet (Biesse S.p.A., HSD, Bavelloni Volvera) is hybrid, with a target of plug-in migration by 2029; renewable-energy purchasing started in 2020, targeting 100% by 2030. "The overall reductions in Scope 1 and 2 GHG emissions achieved by the Group as a result of the new actions implemented in 2025 are approximately 13% lower than in 2024." No significant financing was required in 2025; there is "currently no structured Capex plan," though financial-resource tables show allocations (CapEx 2024: EUR88,000; OpEx 2024: EUR306,000, 2025: EUR33,839, 2026: EUR34,409).

Targets related to climate change mitigation and adaptation

Reference: page 60.

2024-2026 Plan targets (base year 2019, chosen as pre-Covid and inclusive of the GMM Group): -50% Scope 1+2 (market-based) by 2030; 100% renewable energy by 2030; Life Cycle Assessment-based environmental characterisation of new products. The new 2026-2028 Plan rebases to 2023 and adds a Scope 3 use-phase target (-5% tCO2eq/vehicle sold). "In setting the targets, no different market scenarios or substantial changes in temperatures that might occur in future years were considered... any changes in sales volumes, as well as regulatory developments or changes in the environment that might impact the targets initially set, will be adequately described." Levers: photovoltaic installation, renewable-energy purchase, fleet hybridisation, production-plant energy efficiency, and machine energy-performance improvements. All Group companies sit within scope; the GHG inventory is third-party certified.

Energy consumption and mix

Reference: page 61.

2025 total energy consumption was 50,155 MWh (2024: 52,240), of which 75% fossil (2024: 76%) and 25% renewable (2024: 24%). Fossil breakdown 2025: natural gas 20,370 MWh, crude oil/petroleum 13,619 MWh, purchased fossil electricity/heat/steam/cooling 3,760 MWh. Renewable breakdown 2025: purchased renewable electricity/heat/steam/cooling 10,739 MWh, self-generated non-fuel renewable 1,636 MWh, renewable fuel (incl. biomass) 31 MWh. No nuclear-source consumption is reported (0 MWh, both years).

Gross Scope 1, 2, 3 and total GHG emissions

Reference: page 62.

GHG inventory per ISO 14064-1. 2025: Scope 1 = 6,817 tCO2e (2024: 7,820; 2019 base: 8,816); Scope 2 market-based = 1,578 tCO2e (2024: 1,824; 2019: 10,061); Scope 1+2 market-based = 8,395 tCO2e (2024: 9,643; 2019: 18,877). Scope 3 = 297,239 tCO2e (2024: 190,971), dominated by Category 1 purchased goods/services (120,592 tCO2e) and, reported for the first time, Category 11 use of sold products (155,828 tCO2e). Total GHG (market-based) = 305,634 tCO2e (2024: 200,614). The Category 1 2024 figure was restated for material-weight accuracy; the growth mainly reflects expanded reporting scope (Biesse Parts, HSD) and the new Category 11 disclosure, partly offset by Scope 1/2 reductions from Renewable Energy Certificate purchases at GMM and Mectoce and lower production volumes.

Pollution-related policies

Reference: page 69.

The same integrated Quality, Safety and Environment policy covering E1 also governs pollution: it "emphasises the group's commitment to reducing negative impacts related to pollution, the use of hazardous substances and, more generally, the protection of environmental resources," with attention to employee training and health/safety. Biesse commits to "minimise the potential environmental impact of its activities on air, water and soil" using available technology, implemented through the ISO 14001:2015 EMS. The policy is BoD-approved and applies Group-wide.

Pollution-related actions and resources

Reference: page 70.

Biesse runs a legislative-compliance monitoring plan, with annual verification of production-site emissions against legal limits; air emissions are described as "the most important environmental aspect for the group in terms of pollution." The Italian sites (Pesaro, Gradara, Lugo, Pieve Vergonte) and Indian sites (Makali, Nelamangala) hold ISO 14001:2015 certification. Tier-one supplier qualification audits check compliance with environmental regulation alongside health and safety. Financial resources allocated to EMS-related E2 actions: OpEx EUR30,000 (2024), EUR44,300 (2025), EUR24,500 (2026); CapEx EUR577,000 (2024), nil in 2025-2026. "The group does not adopt specific metrics but uses legal references to monitor pollutant emissions to air."

Pollution-related objectives

Reference: page 70.

"No further specific targets have been set" beyond the environmental policy and the ISO 14001:2015 EMS; compliance with legal emission limits is monitored continuously via accredited laboratories, with local authorities involved in target-setting under national law. Air pollution, "although negligible in amount," traces to machine-testing and tooling production; the applicable target is compliance with the relevant country's legal limits. Supplier-side pollution is audited under ESRS S2-4 and will be "progressively extended" across 2026-2028.

Pollution of air, water and soil

Reference: page 71.

"The analysis carried out on the group's various production sites according to the laws in force in the states where the company operates has not revealed any cases of exceeding the prescribed pollution thresholds to date." Periodic monitoring uses accredited laboratories, at a frequency proportionate to site size. "For the European sites, there were no exceedances of the limits provided by Regulation (EC) No 166/2006 [E-PRTR], while at the group level, there are no exceedances of the limits set by local laws." This is a nil pollutant-exceedance return covering air, water and soil even though, per the 2025 DMA, only the air sub-topic remains material.

Resource use and circular economy policies

Reference: page 73.

Biesse's Sustainability policy and integrated Quality, Health & Safety and Environment policy (BoD-approved) promote "the use of materials from renewable, recycled or certified sources and progressively reducing the use of virgin resources, reducing emissions along the supply chain and optimising processes to reduce waste and wastage of resources such as water and energy." The policy currently applies only to Biesse's own operations and production sites, without exception.

Actions and resources related to resource use and circular economy

Reference: pages 72-73.

Biesse's two-pronged approach: reducing material use through efficient design and energy-efficient technology, and extending component life through preventive maintenance and reconditioning. Suppliers are engaged on recycled-material content; the 2026-2028 Plan targets eco-design criteria in 25 new products and an ISO 14067:2018 life-cycle assessment for one machine family. Two EU-funded R&D projects are named: COTANEC (natural-fibre composites) and CLAM-E2 (additive-manufacturing manifold, delivering "an 87% reduction in production waste"). Financial resources allocated: OpEx EUR507,000 (2024), EUR75,000 (2025), EUR140,000 (2026). Machine useful life is "approximately between 12 and 15 years"; end-of-life disposal is the end customer's responsibility.

Resource use and circular economy objectives

Reference: page 74.

"At present, the Group has not yet defined specific objectives relating to the use of resources, as in-depth analyses are currently underway to assess the environmental impact of products and identify any areas for improvement." The 2026-2028 Sustainability Plan commits to eco-design development for new products, aimed at "optimising the use of resources in the manufacture of machines and improving their energy performance."

Resource inflows

Reference: page 74.

2025 total resource inflows: 29,389 tonnes (2024: 38,007 tonnes), split as technical materials 17,767t, commercial materials 8,376t, mechanical assemblies 2,199t, packaging (wood/paper/cardboard/plastic film) 692t, other materials 353t, and rare soils (used in electronic components) 2t. "The difference compared with 2024 is due to a more detailed breakdown of product categories and lower expenditure on production-related goods in 2025." The only organic-origin material in production is wooden packaging; the weight of secondary/recycled material content "was not possible to quantify... as the company does not currently have this information available."

Resource outflows (including waste)

Reference: page 75.

Waste derives from machine/component assembly and mainly comprises metal waste, oils and lubricants, paint residues and mixed packaging. 2025 total waste generated: 2,609,578 kg (2024: 2,793,744 kg), of which hazardous waste was 208,947 kg (2024: 345,050 kg) and non-hazardous 2,400,631 kg (2024: 2,448,694 kg); 51,872 kg went to recycling operations in 2024 with no "preparation for reuse" reported. "There was a slight overall decrease in waste produced by the Group, in line with the decline in production," and a slight decrease in waste to landfill, attributed to reorganisation of the HSE function strengthening waste-flow tracking. No repairability rate is codified, but products "are structurally designed to be repairable."

Waste

Reference: page 75.

The Annex 1 EU-legislation cross-reference table confirms both E5-5 waste sub-datapoints as disclosed with a page reference: "ESRS E5-5, para. 37(d), Non-recycled waste" and "ESRS E5-5, para. 39, Hazardous waste and radioactive waste," each referenced to page 75 (page 112). The waste table (Table 15, page 75) reports total waste generated of 2,609,578 kg in 2025 (2024: 2,793,744 kg), split hazardous/non-hazardous, sourced from MUD declarations (Italy), national waste-traceability systems (other EU sites under Directive 2008/98/EC) and local waste registers elsewhere. "It should also be noted that the Group's production processes do not involve the production of radioactive waste."

Policies related to own workforce

Reference: page 80.

Biesse applies an integrated policy system - the Code of Conduct, the Human Rights Policy and the integrated Quality, Safety and Environment policy - covering all Group employees, business partners and suppliers. The Human Rights Policy aligns with the Universal Declaration of Human Rights, OECD Guidelines for Multinational Enterprises, the UN Global Compact and ILO Declaration on Fundamental Principles and Rights at Work, addressing forced labour, child labour, discrimination and harassment. Governance runs through Senior Management (strategic oversight), Directors/Department Heads (operational implementation) and HR/People & Communications/Sustainability & Safety (technical coordination), applied across the full employment lifecycle from recruitment to day-to-day conduct.

Processes for engaging with own workers and their representatives

Reference: page 81.

Engagement runs through a dual channel: an individual channel (direct contact with HR or managers) and a collective channel via Employee Representatives, present "in Italy, France, Spain (EEA area)." Trade-union involvement covers second-level bargaining, work reorganisation, new regulations and collective economic treatment, with monthly/quarterly meetings plus ad hoc sessions. "Currently, there are no formalised tools for quantitatively measuring the effectiveness of engagement"; monitoring of relational climate and ongoing dialogue serve as qualitative indicators instead.

Remediation and channels to raise concerns

Reference: page 81.

A dual collective/individual dialogue channel handles potential negative impacts, supplemented by a Whistleblowing system active in countries that have transposed the relevant EU directive, accessible online and guaranteeing confidentiality and non-retaliation. Where no national regulation applies, reports are still handled under internal procedure. "The procedures for handling complaints and reports... are described in detail in ESRS G1 - paragraph G1-1."

Taking action on material impacts on own workforce

Reference: page 82.

Two Group-wide projects: People Management, launched in 2025 with a matrix organisational model and a "Work Architecture" project classifying roles by responsibility, autonomy and required skills to define transparent growth paths; and Group Compliance, embedding legal/regulatory/corporate requirement controls. Both projects, part of the Strategic Plan, are due to complete in 2026. Financial resources allocated to S1 actions: OpEx rising from EUR750,000 (2024) to a planned EUR1,770,000 (2028); CapEx EUR50,000 (2025) rising to EUR150,000 (2028). 2025 deviations reflect "the organisational changes that took place during the year."

Targets related to own workforce

Reference: pages 81-82.

The 2026-2028 Strategic Plan places people development centrally, emphasising employee training, responsible leadership and an inclusive culture "based on integrity, collaboration and results orientation." Occupational health and safety objectives include ISO 45001:2018 certification across all production plants and a 7% year-on-year reduction in the Accident Frequency Index versus baseline, alongside growth of the Biesse Academy for internal-skills and distribution-network development.

Characteristics of the undertaking's employees

Reference: page 83.

Total workforce at 31 December 2025: 3,397 employees (2024: 3,737). Significant-employment countries: Italy (1,997, ~59%) and India (433). Outgoing employees: 669, a 19.7% turnover rate (2024: 15.2%), linked to internal reorganisation. 98% hold permanent contracts; 480 women and 2,917 men; 77 part-time (480 total permanent:2,917 split by gender per Tables 16-19); no intermittent or zero-hour contracts are used.

Characteristics of non-employee workers

Reference: page 84.

272 non-employees in the own workforce in 2025: 6 workers on atypical (VAT) contracts (2024: 30) and 266 temporary agency workers under NACE code N78 (2024: 235). "Staff leasing workers, as well as most atypical workers, are mainly involved in the Group's production activities," with only a minority of self-employed in administrative roles. Data is drawn from the centralised management system "without using estimates."

Collective bargaining coverage and social dialogue

Reference: page 84.

Approximately 69% of Group employees are covered by a collective labour agreement, in line with 2024. In Italy, the EEA country of significant employment, collective bargaining covers 100% of employees and 62.4% are covered by workers' representatives (restated methodology; 2024 was 39.7% under the narrower trade-union-membership count). Non-EEA collective-bargaining coverage in 2025: Americas 10.8%, APAC 23.42%, EMEA (excl. EEA) 0%.

Diversity metrics

Reference: page 85.

Senior management (first/second tier below CEO) gender split 2025: 28 women (16.67%), 140 men (83.33%), total 168 (2024: 20 women/12.35%, total 162). Age distribution 2025: under 30 = 306 (9%), 30-50 = 1,874 (55.2%), over 50 = 1,217 (35.8%). Selection is stated to ensure necessary skills "regardless of... origin, gender, age, background or any other source of discrimination."

Adequate wages

Reference: page 89.

"Biesse applies national regulations and, where present, second level bargaining, to ensure that Group employees are paid fairly. In fact, all Group employees receive an adequate salary, according to the applicable benchmarks in each country where Biesse operates," using minimum wages set by federal/state or collective agreement where available, and a living-wage analysis by country HR elsewhere.

Social protection

Reference: page 87.

Coverage of sickness, unemployment, accident, leave and retirement benefits is reported by country and coverage band (0-19% to 80-100%), reflecting that protection "may vary according to local laws or company practices." Year-on-year, several countries moved bands: Malaysia and the UAE moved from 0-19% to 80-100% for sickness cover; Australia, New Zealand and Singapore moved to 80-100% for unemployment cover; Singapore moved to 80-100% for disability cover and to 80-100% for retirement cover; the UAE moved to 80-100% for parental leave.

Persons with disabilities

Reference: page 86.

"Based on voluntary employee declarations, 2% of employees are persons with disabilities in the 25 countries where the Group operates," calculated from the Group's centralised management system.

Training and skills development metrics

Reference: pages 86-87.

Training covers product, processes/methodologies, cyber security, transformation enablers, mandatory (health & safety, Model 231), professional-specific and induction topics, supplemented by a 24/7 e-learning library enhanced in 2025 with AI tools and virtual avatars (23 brand/product courses; 10 courses on a new machine interface). Average training hours per employee fell to 13.1 in 2025 (2024: 21.68), attributed to fewer new product launches and a shift to shorter online formats. Performance-review participation: 17.5% of the workforce in 2025 (2024: 16.62%).

Health and safety metrics

Reference: page 89.

100% of workers are covered by legal/national health-and-safety regulations; 66.76% are covered by an ISO 45001:2018-certified management system (2024: 66.63%). Zero work-related deaths among employees and non-employees in 2025. Total recorded accidents: 48 (2024: 73), accident rate 8.19 (2024: 12.00), with one self-employed-worker accident and one confirmed occupational-disease case among employees (none in 2024).

Work-life balance metrics

Reference: page 89.

98% of employees are entitled to family leave under local regulation (2024: 91.7%); where no state protection exists, Biesse separately covers "around 1%" of its workforce (2024: around 6% of the then-uncovered remainder). Of those entitled, 28.28% of employees took family leave in 2025 (women 3.10%, men 25.19%; 2024 total: 29.65%).

Compensation metrics (pay gap and total remuneration)

Reference: pages 88-89.

Annual total remuneration ratio: 29.76 in 2025 (2024: 41.32), the drop attributed to a CEO change during the year. Gender pay gap: 6.68% in 2025 (2024: 6.29%), with the small increase attributed to "a refinement of the methodology used." Both figures are calculated across all Group companies, weighted by male/female headcount.

Incidents, complaints and severe human rights impacts

Reference: page 90.

"During 2025, no complaints of alleged discrimination were received through dedicated channels... there were no incidents of discrimination and no penalties or damages resulting from them." No labour-related human rights incidents, fines or penalties were recorded during the year, consistent with 2024.

Policies related to value chain workers

Reference: page 92.

A 2024 Human Rights Policy, read together with the Code of Conduct, applies to employees, suppliers and partners, covering forced labour, child labour, discrimination, safe working environments and freedom of association, drafted per the UN Guiding Principles, ILO Conventions, UDHR, OECD Guidelines and UN Global Compact, BoD-approved. Compliance is monitored via supplier ESG audits and Whistleblowing analysis. "Currently, Biesse has not adopted a specific code of conduct for suppliers; however, compliance with the Group's Code of Conduct is required in each contractual annex." "To date, Biesse has found no instances of non-compliance" with its reference guiding principles.

Engaging with value chain workers about impacts

Reference: page 92.

"The company, to date, has not implemented a process for the direct involvement of workers in its value chain." In 2025, however, Biesse's main suppliers were engaged in meetings coordinated by the ESG Manager and purchasing department, where suppliers shared their IRO perspective, including on their own workers.

Remediation and channels for value chain workers

Reference: page 93.

"According to the available data, the Group has not generated or contributed to any current negative impacts on workers in the value chain." A reporting channel (Directive 2019/1937-aligned) is available online for Biesse S.p.A., HSD, Bavelloni and GMM. During 2025 the Supervisory Body received one report via these channels; after investigation "the report was closed as the facts were found to be of no significance under the Decree and the MOG." The channel is "not available in workplaces" and no specific training on it was run for value-chain workers in 2025.

Taking action on material impacts on value chain workers

Reference: page 94.

Since 2023, Biesse's direct-supplier assessment system includes an ESG-performance section operational since 2024, with supplier audits on environmental, health/safety and human-rights compliance under a defined internal plan. The 2026-2028 Sustainability Plan extends verification scope to Bavelloni and GMM. "At the reporting date, the Group did not see the need to implement any additional actions... aimed at producing positive impacts for workers along the supply chain." No serious human-rights reports concerning the value chain were received in 2025, as in 2024.

Targets related to value chain workers

Reference: page 94.

Target: ESG-verify suppliers representing 60% of Biesse's expenditure by 2026 (set in the 2024-2026 Plan, carried into 2026-2028). By 2025 the company had verified 51% of Group expenditure (2024: 38%; 2023 baseline: 0%), against a stated 2025 target value of 29 suppliers/51% - i.e. the 2025 milestone was met. The process is run by the Supply Chain department and covers environmental, health/safety and social criteria including child- and forced-labour risk.

Policies related to affected communities

Reference: page 97.

"The company does not currently have a formalised policy to manage material impacts on affected communities; however, for the year 2025, only significant positive impacts were identified." Community-relevant values sit within the Code of Conduct, described under the G1 business-conduct policies.

Engaging with affected communities about impacts

Reference: page 97.

Although there is no formalised policy, Biesse "actively engages in dialogue with local communities, gathering feedback through meetings, consultations and collaborations with local authorities and associations," with consultations "at least once a year." Responsibility sits with the ESG Manager or local HR Managers. "The company has a formalised system for measuring the effectiveness of initiatives carried out in the area by collecting feedback from the associations and organisations involved."

Remediation and channels for affected communities

Reference: page 97.

"During 2025, as in 2024, the Group did not experience any significant negative impacts in the affected communities in which it operates." The Whistleblowing policy is accessible to communities and counterparties, not only employees, though "no targeted initiatives have been undertaken to raise awareness among the communities concerned about the existence of this instrument." Detailed handling is cross-referenced to ESRS G1, paragraph G1-1.

Taking action on material impacts on affected communities

Reference: pages 96-97.

Governance, control and compliance measures integrate ESG into decision-making (Code of Conduct, supply-chain qualification/monitoring, measurable ESG objectives with periodic reporting, ongoing stakeholder engagement). Financial resources allocated: OpEx EUR440,000 (2024), EUR584,000 (2025), EUR406,000 (2026). Named 2025 community initiatives include funding the Sustainability Engineering course at Università Politecnica delle Marche, a wood-craft training partnership in Pesaro, long-running skills partnerships with Indian technical institutes, and support for "I Bambini delle Fate," the "Smiling Children Town" project in Ethiopia, the "MoviS" oncology-exercise programme, the Homobonus Foundation, and food-recovery partnerships with Banco Alimentare and Caritas recovering "approximately 2,621 complete meals" in 2025. No serious human-rights violations or significant community incidents were identified.

Targets related to affected communities

Reference: page 98.

"To date, Biesse has not established specific and measurable objectives concerning the management of material negative impacts, the enhancement of positive impacts, or the management of material risks and opportunities in relation to affected communities."

Policies related to consumers and end-users

Reference: page 102.

"To date, Biesse has not defined a policy related to end-users, however, it adopts strict standards to protect customer privacy and security."

Engaging with consumers and end-users about impacts

Reference: page 102.

End-users are engaged mainly through the Double Materiality process (a 2025 workshop plus questionnaire interview), supplemented by ongoing dialogue via sales managers, dealers and business partners across the product lifecycle (development, sales, after-sales). "As described above, there are no vulnerable groups that are directly impacted by the Group's business due to the type of products the company places on the market."

Remediation and channels for consumers and end-users

Reference: pages 101-102.

Biesse "has not yet formalised a process" for managing significant negative impacts on end-users identified through the DMA, though it reports and mitigates them when found. End-users can raise concerns via the Whistleblowing platform or the Legal & Corporate Affairs department; "the company has not yet organised specific training sessions to explain to customers the existence and functioning of this tool." Detailed handling is cross-referenced to ESRS G1, paragraph G1-1.

Taking action on material impacts on consumers and end-users

Reference: pages 102-103.

The Customer Care project standardises the Markets customer-care organisational model, optimises IT systems and trains staff, extended in 2025 to target globally consistent service quality and faster, better-matched technical solutions. Machines undergo risk assessments exceeding Machinery Directive 2006/42/EC requirements; support includes a 24/6 remote service, local technician networks, preventive-maintenance contracts and dealer e-learning packages. Financial resources allocated: OpEx EUR180,000 (2024) rising to a planned EUR1,856,000+EUR180,000 CapEx by 2028. No serious human-rights reports concerning end-users arose in 2025.

Targets related to consumers and end-users

Reference: page 104.

"Although the company has not yet defined specific objectives for managing impacts, risks and opportunities, it considers projects related to strengthening customer service levels to be fundamental strategic initiatives for ensuring business continuity and enhancing customer satisfaction."

Corporate culture and business conduct policies

Reference: pages 105-107.

The Group Code of Conduct sets out vision, mission and six values (International natives, Insightful curiosity, Genuine mastery, Widespread transparency, Heartfelt commitment, Respectful sight), grounded in the UN Declaration of Human Rights, ILO Core Conventions and the UN Global Compact's ten principles, BoD-approved. It sits alongside the Human Rights Policy, the integrated Quality, Safety and Environment policy and the Group Sustainability policy. European Group companies adopted a Whistleblowing policy under Directive (EU) 2019/1937, with channels on the Biesse S.p.A., HSD, GMM and Bavelloni websites (to be consolidated onto one platform from 2026), acknowledgement within 7 days and feedback within 3 months. "Purchasing" and "commercial" are flagged as sensitive for corruption risk under the Model 231 risk assessment, "though the assessment did not result in the evaluation of a high risk level." From 2024, Italian office staff receive dedicated training on whistleblowing, the Code of Conduct and Legislative Decree 231/2001.

Supplier relationship management

Reference: page 108.

Relationships are standardised via a shared Supplier Quality Manual and evaluation against it, with payment-term compliance monitoring focused on SMEs. Following the S2 materiality findings, Biesse "revised the entire supplier qualification process, integrating an analysis of ESG parameters," covering health/safety, environmental and human-rights compliance, to identify supply-chain risk areas and monitor corrective-action effectiveness.

Prevention and detection of corruption and bribery

Reference: pages 107-108.

Biesse S.p.A.'s Group-wide Anti-Corruption Code of Conduct, though "not aligned with the provisions of the United Nations Convention against Corruption," follows the Italian Criminal Code (Art. 318 et seq.), Civil Code (Art. 2635 et seq.), Law 190/2012, Legislative Decree 231/2001 (Art. 25-ter), the UK Bribery Act 2010 and Directive 2019/1937. Reporting runs through the same Whistleblowing channels as G1-1, managed by Legal & Corporate Affairs with the Supervisory Body handling reports. "During 2025, as was the case in 2024, the SB received no reports of active or passive corruption," and no business function was assessed as exposed to significant risk, so no extraordinary training was required.

Targets related to business conduct

Back-filled from the business conduct chapter, where targets are addressed as part of the MDR-T/GDR-T disclosures rather than as a numbered disclosure requirement. G1-3 became a standalone DR only in the 2025/2026 ESRS.

Biesse states plainly: "With regard to objectives related to corporate conduct, at the date of preparation of this document, Biesse has not yet defined specific targets" (page 108). Consistent with MDR-T's alternate limb, effectiveness is instead tracked through named ongoing mechanisms (page 108): "Continuation of the legal compliance project that monitors regulatory developments"; "Establishment of the Risk function to oversee the proper management of corporate risks," including a new internal control system for ESG issues "responsible for carrying out checks on the entire company perimeter"; and "Periodic publication of clear and verified information on institutional and official channels to counter misinformation." The report adds that "the 2026-2028 Plan includes specific actions regarding corporate culture," referenced to ESRS2 SBM-1.

Incidents of corruption or bribery

Reference: page 109.

"During 2025, as in 2024, there were no convictions for cases of corruption and bribery and consequently no fines for violations of the above-mentioned cases."

Payment practices

Reference: pages 108-109.

Agreed payment terms "typically range from 90 to 120 days," paid mainly on the 10th of each month plus weekly sessions to limit delay. Average 2025 payment period: 104 days (2024: 103 days); for SMEs, 89 days (2024: no SME/total differential reported), covering "approximately 94% of total consolidated trade payables" excluding Bavelloni S.p.A. and intercompany payments. "As in 2024, there are no ongoing legal proceedings due to late payments in 2025."