Emak S.p.A.

Governance roles

Reference: pages 29-31.

Emak has a traditional governance structure: the Shareholders' Meeting, the Board of Directors and the Board of Statutory Auditors. The Board "defines the Group's strategies, integrating social and environmental issues, and monitors their implementation, with the aim of promoting long-term value creation" (page 29).

The Board appointed in 2025 has 13 directors for a 2025-2027 mandate: 2 executive, 3 non-executive independent (23% of the total), 8 non-executive non-independent; 6 of 13 are women (46%) (page 29). Four Board committees operate: Remuneration Committee (CoRe), Control, Risks and Sustainability Committee (CCRS), Related Party Transactions Committee (COPC) and Nominations Committee (CNom).

The CCRS supports "the Board's assessments and decisions relating to the internal control and risk management system, as well as the approval of financial and sustainability reports" and "examine[s] the content of the sustainability statement" (page 30); it has an annual budget of EUR 20,000. Specific training on the double materiality assessment was carried out in 2025 for CCRS members, executive directors and the Chair (page 31). The Board self-assessment (most recent: February 2025) covers Board and Committee composition and functioning (pages 30-31).

Information provided to and sustainability matters addressed

Reference: page 32.

"During 2025, the governing bodies oversaw the preparation and approved the periodic reporting on sustainability matters and participated in the double materiality assessment process." The Board handles "high-level objectives" and "the most significant and strategic issues," while more specific initiatives (e.g. energy-saving, R&D) sit with competent functions.

Throughout the year, delegated bodies (supported by operational functions) informed the Board and relevant Board committees on policies, actions, metrics and targets for sustainability matters. Specific items concerned "the refinement and concurrent update of the double materiality analysis," prepared as a step for drafting the 2025 sustainability statement, and "an initial introduction to the forthcoming regulatory changes in the field of sustainability reporting."

The list of material impacts, risks and opportunities addressed by the administrative bodies and committees during the year is provided under SBM-3.

Integration of sustainability-related performance in incentive schemes

Reference: pages 32-33.

Emak grants variable remuneration exclusively to executive directors, split into fixed, short-term variable (annual) and medium-long term variable (three-year) components.

CEO's 2025 short-term variable remuneration weighted 60% economic/financial objectives and 40% specific objectives, including: 10% for launching two new products with "particular reference to battery-powered products"; 5% for a succession plan; and 25% for sustainability objectives covering (i) R&D projects for "zero-emission or otherwise low-environmental-impact products", (ii) AEO (Authorised Economic Operator) certification for Emak S.p.A., and (iii) the 2025 objectives of Emak S.p.A.'s Gender Equality certification strategic plan (page 32).

The CFO's short-term variable remuneration also had a 40% weight on specific objectives, including a 15% weight on the Group Treasury project, described as "not directly linked to ESRS indicators" (page 33). The remuneration policy was introduced following the 29 April 2025 Shareholders' Meeting renewal of corporate bodies and runs through the 2027 financial statements.

Statement on due diligence

Reference: page 33.

Emak states it "has implemented this process indirectly and does not have a structured and detailed due diligence framework formalized through a dedicated procedure," but has adopted tools inspired by due-diligence principles, including an Integrated Policy for Quality, Environment and Safety covering identification, assessment and management of ESG risks and opportunities, plus the governance model, internal procedures, risk-management framework, and monitoring/reporting activities.

A mapping table (page 33) links the five core elements of due diligence to sections of the statement: embedding in governance/strategy maps to GOV-1, GOV-2, GOV-3 and SBM-3; stakeholder engagement maps to GOV-2, SBM-2 and IRO-1; identifying and assessing adverse impacts maps to IRO-1 and SBM-3; taking action maps to the MDR-A paragraphs for each topic (E1, E5, S1, S2, S4, G1); and tracking effectiveness maps to the MDR-T paragraphs for each topic.

Risk management and internal controls over sustainability reporting

Reference: pages 34-36.

The Board of Directors of Emak S.p.A. "has adopted a specific procedure designed to ensure that the Sustainability Statement included in the Management Report complies with applicable regulations," approved on 30/01/2025 following review by the CCRS. Internal control tools include: the drafting procedure, a Standard Group package, a compilation instruction manual, consolidation software, a compliance checklist (structured around 12 areas of analysis, completed by the Manager in Charge and Delegated Administrative Body with Internal Audit support), declarations of compliance, and an Internal Audit plan (pages 34-35).

Two risk areas are identified: (1) regulatory evolution — mitigated through training, working-group participation, external consultants and the compliance checklist; (2) complexity and size of the Group — mitigated through formal procedures, enabling software and cascading declarations from subsidiaries (page 35).

The reporting process runs through 10 steps from project initiation to Board approval, including a materiality-analysis step where "Annually, the Control, Risks and Sustainability Committee and the Board of Directors confirm the validity of the materiality analysis" (page 35-36).

Strategy, business model and value chain

Reference: pages 37-42.

Emak operates through three divisions: Outdoor Power Equipment (30% of sales; brands Oleo-Mac, Efco, Bertolini, Nibbi), Pumps & Water Jetting (40%; brands Comet, HPP, Lemasa, Lavor, Poli, Valley, Bestway) and Components & Accessories (30%; brands Tecomec, Speed, Geoline, Agres, Markusson, Sabart, Trebol, PNR). The Group sells through 150 distributors in over 115 countries (page 38) and manufactures at production plants across Italy, China, Brazil, the US, France, Chile, South Africa and Sweden (pages 39-40).

Strategy is built on four pillars: Innovation (product/process, including electrification and recycled materials), Distribution, Efficiency, and Acquisitions (page 41). Total employees: 2,504 (2024: 2,527), 59.3% in Europe.

Value chain: upstream is dominated by aluminium, brass, copper and steel purchased as raw materials or via fixed-quantity contracts; over 60% of the supply chain is EU-based, the rest mainly China, Brazil and the US. Downstream covers third-party distributors, OEM further processing, end-user use and end-of-life management (pages 41-42). "To date, the Group has not formalized a sustainability plan" (page 38).

Interests and views of stakeholders

Reference: pages 43-44.

Stakeholder mapping followed the AccountAbility 1000 (AA1000) standard, scoring each category on influence exerted on the Group and dependency on the Group's activities. Identified stakeholder categories include Employees, Consultants, Distributors/OEM, End users, Public administrations and environmental control bodies, Direct materials/finished product suppliers, University and Research Centres, Banks and Shareholders (pages 43-44).

For each category the report lists thematic areas of interest and dialogue instruments, e.g. Employees: growth/training, health and safety, diversity, human rights, engaged via training, open days, company portal, climate surveys, collective bargaining; Suppliers: transparency, ethical responsibility, human rights and working conditions, engaged via institutional website and negotiation relationships.

Stakeholder interests and opinions "were analysed during the double materiality assessment process," with results shared with the Control, Risks and Sustainability Committee and the Board (page 43).

Material impacts, risks and opportunities

Reference: pages 44-51 (tables); page 54 (topic count).

Of 28 potentially relevant sustainability issues identified through benchmarking, 16 were found material for 2025 (19 in 2024) (page 54). Material topics: ESRS 2, E1 (Climate change), E5 (Circular economy), S1 (Own workforce), S2 (Workers in the value chain), S4 (Consumers and end-users), G1 (Business conduct). E2 (Pollution), E3 (Water and marine resources) and E4 (Biodiversity) were assessed and found not material (page 54; see also page 51).

Material sub-topics and their negative/positive impacts, risks and opportunities are set out in two tables (pages 45-51): E1 — Emission reduction (negative: CO2 emissions slowing Paris Agreement/Green Deal goals; risks: chronic physical risk, transition/regulatory risk, technological obsolescence, cost of transition, energy crisis, Greenbuildings compliance; opportunity: use of new technologies) and Responsible energy use (negative: dependence on non-renewable energy; positive: employee energy-saving awareness). E5 — Sustainable management of materials and Reduction of waste and circular economy (negative impacts on material/resource availability and waste; risks on input costs, ESPR and PPWR/EPR compliance; opportunity: secondary raw materials). S1, S2, S4 and G1 IROs are detailed in their respective topical chapters.

Changes versus 2024: E2, E3 dropped as not material; S4's IROs were reformulated around information-related impacts; the entity-specific "Product quality and sustainability" topic was folded into the Management Report's R&D section (page 55).

Description of the processes to identify and assess material impacts, risks and opportunities

Reference: pages 52-56.

Emak's double materiality assessment followed four phases, aligned with EFRAG IG 1 (May 2024): context analysis (internal documents, policies, ERM) and management interviews; a benchmark analysis against 14 competitors (impact materiality) and internal ERM/strategic documents, TCFD/TNFD/SASB and ESG ratings (financial materiality), covering ESRS 1 AR16 topics/sub-topics/sub-sub-topics; an impact assessment by an internal Focus Group (Chairman, CFO, CCRS, Risk Manager, Investor Relations) scoring scale, scope, remediability and likelihood, cross-checked with stakeholder questionnaires; and a risk/opportunity assessment by the CFO and Risk Manager using ERM files and climate scenario analyses, scoring magnitude and probability (pages 52-53).

"In assessing potential negative impacts related to human rights, a particularly prudent approach was adopted, prioritizing the severity of the impact over its likelihood" (page 53). Each IRO category's materiality threshold is set near the average "overall score" achieved by IROs in that category (page 54).

2025 refinement: the internal team reviewed all 2024 assessments; results were shared with the CCRS and formally approved by the Board. Of 28 potentially relevant issues, 16 were found material (19 in 2024): E2 and E3 were dropped as non-material, S4's IROs were reformulated, and the entity-specific product-quality topic was folded into the Management Report (pages 54-55).

Disclosure requirements in ESRS covered by the undertaking's sustainability statement

Reference: pages 56-58 (ESRS Content Index and EU Datapoint Table).

Emak publishes an ESRS Content Index listing, per disclosure requirement, the page where it is covered. It covers ESRS 2 (BP-1, BP-2, GOV-1 to GOV-5, SBM-1 to SBM-3, IRO-1, IRO-2, MDR-P/A/M/T) and the topical standards E1 (all of E1-1 to E1-8, with E1-9 marked for the phase-in option on expected financial effects under Delegated Regulation (EU) 2025/1416), E5 (E5-1 to E5-5, with E5-6 similarly phased in), S1, S2, S4 and G1. E2, E3 and E4 appear only as the cross-referenced ESRS 2 IRO-1 process paragraph (page 52), with no topical disclosure requirement listed, consistent with those topics being assessed not material.

A separate EU Datapoint Table (page 57 onward) lists information elements derived from other EU legislation under ESRS 2 Appendix B (SFDR, Pillar 3, Benchmark Regulation, EU Climate Law references), each marked "Reported" with its source paragraph.

Transition plan for climate change mitigation

Reference: pages 71-73.

"The Group does not currently have a structured transition plan for climate-change mitigation as outlined in Regulation (EU) 2023/2772, and, given the uncertainty of the context in which it operates and the evolving regulatory framework, it has not yet defined a precise timeline for its potential development" (page 71).

The Group is instead "focused on progressively refining and expanding the mapping of its emissions inventory," reporting Scope 1 and 2 for several years and, from 2024, gross Scope 3. "Formalised and certified improvement plans are in place only within the companies that hold ISO 14001 environmental certification" (page 71).

On transition risk, an Enterprise Risk Management (ERM) process covers 24 strategic risks per Business Unit (page 72), with climate managed across four areas: product-regulation compliance, end-user preferences, energy-supply-chain aspects, and business-model effects, each monitored by a named function. On physical risk, "the Group's management believes that this risk is not critical," with issues from the 12 priority hazards examined arising "within a 30-year timeframe" (page 72).

Identification of climate-related risks and scenario analysis

Back-filled from ESRS 2 IRO-1 (climate paragraph, page 73) and the EU Taxonomy DNSH physical-risk scenario analysis (pages 65-66). This disclosure requirement did not exist under the 2023 ESRS the report was prepared against.

Transition risks are classified and monitored across four areas: compliance with product regulations, end-user preferences, the energy supply chain, and the effect of climate change on the Group's reference markets (page 72).

For physical risk, "During 2024, the Group completed the scenario analysis related to physical risks - chronic and acute - indicated in Appendix A of Delegated Regulation (EU) 2021/2139. This analysis was evaluated by the Control, Risks and Sustainability Committee and the Board of Directors in February 2025" (page 66). The IRO-1 climate paragraph adds that the analysis focused on 12 priority hazard types: changes in air temperature, thermal stress, temperature variability, heatwave, cold wave/frost, cyclone/hurricane/typhoon, storm, snowstorm, tornado, water stress, river flooding and subsidence (page 73). Management concluded physical risk "is not critical," with potential issues arising "within a 30-year timeframe."

The report does not name a specific climate model or warming scenario (e.g. RCP, SSP or IEA pathway), does not disaggregate own-operations from value-chain exposure, and does not state key assumptions (policy, macroeconomic, technology) behind the analysis — these are gaps against ESRS E1 paragraph 17.

Resilience in relation to climate change

Back-filled from ESRS 2 IRO-1 / E1-1 (page 72). This disclosure requirement did not exist under the 2023 ESRS the report was prepared against.

Emak does not describe having performed a resilience analysis as defined under the ESRS. The closest disclosure is the physical-risk scenario conclusion: "the Group's management believes that this risk is not critical. The scenarios examined and the risks considered indicate that potential issues could arise within a 30-year timeframe, making mitigation planning currently ineffective. The Group, through dedicated functions, will continue to monitor the evolution of these scenarios, keeping its risk assessments updated and the possibility of implementing corrective actions if necessary" (page 72).

No statement addresses implications for the business model, financial flexibility to adjust or adapt assets, or areas of significant uncertainty in the assessment. Since the Group states it has no structured transition plan (E1-1, page 71), there is also no stated link between resilience and transition-plan actions.

Policies related to climate change mitigation and adaptation

Reference: page 74.

"To date, the Group does not have formalised policies for managing the impacts, risks and opportunities associated with climate-change mitigation, climate-change adaptation, energy efficiency and the deployment of renewable energy."

Instead, the Group relies on its organizational system for legal compliance and on longstanding awareness/energy-efficiency initiatives. Under the 231/2001 Organizational, Management and Control Model, environmental crimes (Article 25-undecies, introduced by Legislative Decree 121/2011 and amended by Law 68/2015) are within scope of liability.

Emak S.p.A., Agres Sistemas Eletrônicos S.A. and PNR Italia hold ISO 14001 Environmental Management System certification. The parent company Emak S.p.A. also applies an environmental policy within its broader Integrated Corporate Policy. Supplier selection criteria include "the supplier's performance in environmental and social areas and compliance with the principles expressed in the Code of Ethics."

Actions and resources in relation to climate change policies

Reference: pages 74-75.

"Although the Emak Group has not set specific climate change targets, it is committed to contributing to sustainable development by pursuing continuous improvement goals related to environmental compatibility."

(a) Energy efficiency: intelligent lighting management by shift/presence sensors; thermoregulation systems responsive to external climate; off-peak use of high-consumption machinery; energy recovery from product testing; high-efficiency heating (heat pumps, condensing boilers); upgraded electrical systems/transformers; LED relamping; energy-consumption monitoring per line/machine; window/blind upgrades; and introduction of plug-in hybrid vehicles replacing diesel company cars.

(b) Product modification / electrification: testing machines with recycled plastic content ("a multi-year project focused on the Green Deal"); development of low-emission combustion-engine technologies.

(c) Renewable energy: "purchase and self-production of renewable energy, in line with previous years."

These actions "have led to the filing of several patents" (page 75), but "the Emak Group has not established timeframes within which it intends to complete each main action" (footnote 20, page 75), and resource allocation is deferred to the Taxonomy Article 8 disclosure.

Targets related to climate change mitigation and adaptation

Reference: page 75.

"As of today, the Group has not established consolidated Group-wide targets for the reduction of gross GHG emissions, although there are intermediate and granular targets derived from ISO standards related to specific plants, such as in the case of the Parent Company." No quantified figures for these site-level ISO-derived targets are given in the statement.

In 2025 the Group "refined the mapping of GHG emissions generated along the value chain (Scope 3), increasing the use of precise data where available, or improving estimation methods... This activity aims to define the baseline on which potential GHG emission reduction targets can be identified and formulated, the actions to be taken to achieve them and the respective decarbonization levers." No Paris Agreement or 1.5°C alignment statement, and no SBTi commitment, appears anywhere in the report.

Energy consumption and mix

Reference: page 76 (E1-5 table).

Nuclear share is 0% in both years. Fossil consumption is dominated by natural gas (17,426.92 MWh in 2025) and purchased fossil electricity (26,659.62 MWh).

As a company in high climate impact sectors (Annex I sections A-H and L of Regulation (EC) 1893/2006 / NACE Rev. 2), energy intensity is disclosed: total consumption of 53,475.19 MWh against net revenues of €612,494,394, giving an intensity of 0.0000873 MWh/€ (2024: 0.0000904 MWh/€).

Gross Scopes 1, 2, 3 and Total GHG emissions

Reference: pages 77-79 (methodology); page 79 (totals table).

Significant Scope 3 categories (identified via GHG Protocol Technical Guidance materiality criteria — magnitude, risk, influence, data availability): Category 1 Purchased goods and services (147,499.59 tCO2eq), Category 3 Fuel/energy-related (3,319.91), Category 4 Upstream transport/distribution (12,317.44), Category 11 Use of sold products (697,743.49) (page 79). Categories 2, 5-10 and 12-15 are excluded as non-significant or not applicable (page 78).

Emission intensity: 0.0014 tCO2eq/€ market-based in 2025 (2024: 0.0020). Drivers of the year-on-year decline include updated electricity conversion factors (Scope 2) and lower purchasing/sales volumes plus methodology refinements (Scope 3 Categories 1 and 11); Category 4 rose on a more detailed dataset (page 79). Category 1 data covers 35 of 40 relevant Group companies (99% of the calculated total); Category 4 primary data covers 52% of the calculated total (pages 78-79).

GHG removals and GHG mitigation projects financed through carbon credits

Reference: page 80.

"As part of the Plan to eliminate Scope 1 emissions generated by the car fleet of the Italian companies in the Group, in 2025 the Italian companies purchased Sustainability Credits from the National Park and UNESCO MAB Biosphere Reserve of the Tuscan-Emilian Apennines." These credits, "certified according to FSC and PEFC standards," support sustainable forest management and local communities within the Park and were used to offset 363 tCO2eq produced by the Italian car fleet in 2024.

The offsetting complements the company car policy of prioritising electric and hybrid vehicles or otherwise less-polluting models within the corporate fleet. No GHG removals from own operations or land use are reported.

Internal carbon pricing

Reference: page 80.

"The Group does not apply internal carbon pricing systems." No further detail is provided; this is a direct, one-line disclosure in the E1 chapter (immediately following E1-7), and E1-8 is listed as covered in the ESRS Content Index at page 80.

Policies related to resource use and circular economy

Reference: pages 81-82.

"The Group currently does not have formalized policies for managing the impacts, risks and opportunities related to resource use and the circular economy. Nevertheless, through its organizational system, the Group ensures full compliance with relevant laws and regulations."

Under the 231/2001 Model, environmental crimes in scope include prohibition of mixing hazardous waste, unauthorized waste management, and illegal waste trafficking (Articles 187, 256, 259, 260 of Legislative Decree 152/06). The Code of Ethics, paragraph 4.12 "Environmental Responsibility," identifies waste management as "one of the activities considered to be at highest risk" (page 81).

Emak S.p.A., Agres Sistemas Eletrônicos S.A. and PNR Italia hold ISO 14001 certification; the parent company's environmental policy "emphasizes the search for eco-compatible materials and recyclable components in product industrial design already from the design phase" (page 82).

Actions and resources related to resource use and circular economy

Reference: pages 82-83.

Following the waste hierarchy (prevention, recovery, disposal), actions include: reuse of packaging (cardboard, wood pallets) for raw materials; recovery of metal and plastic shavings (reused internally, sold, or returned to suppliers); wastewater treatment systems separating sludge/emulsions for reuse; and, at Emak S.p.A.'s Pozzilli plant, a purification system recovering water from the deck-painting process, "sending only the sludge generated by the production process for disposal" (page 82).

In 2025 Italian companies complied with RENTRI, Italy's new National Electronic Register for Waste Traceability. R&D efforts target reduced virgin raw-material use via recycled plastics and design for durability, repairability and recyclability; packaging initiatives include FSC-certified cardboard and recycled plastic. End-user awareness measures include QR-code disposal information on packaging and a website disposal guide (page 83). "Resources allocated to manage significant impacts have not yet been defined based on the results of the double materiality assessment, but considering the basic assumptions of the business plan."

Targets related to resource use and circular economy

Reference: page 83.

"The Group has not yet defined improvement objectives related to resource use and the circular economy, although there are intermediate and granular objectives derived from ISO standards, referring to specific plants, such as the case of the Parent Company." No numeric values for these ISO-derived, site-level objectives are given.

"In compliance with the regulations of the operating countries, the Group ensures complete environmental compliance, including provisions on resource use and the circular economy."

Resource inflows

Reference: pages 83-85 (E5-4 tables and methodology).

2025 total resource inflows: 41,235,472.37 kg (2024: 55,538,086.21 kg / 55,578,879.21 kg incl. secondary), a significant decrease driven mainly by lower purchases of "semi-finished products or components" amid a demand slowdown from Q3 2025 and a refined estimation methodology (page 84).

Main categories: raw materials (metals 2,995,250.16 kg, plastic 9,319,589.67 kg); production-process materials (oils, lubricants, glues 1,787,358.81 kg); semi-finished products/components (plastic 4,157,029.45 kg, metal 12,974,074.33 kg, rubber 426,368.55 kg); packaging (paper/cardboard 4,488,764.68 kg, plastic 490,315.22 kg, wood pallets 3,006,300.77 kg). Weight of secondary materials/intermediates reused or recycled: 849,235.66 kg (2% of total); biological materials 0.0% of total.

Critical raw materials indirectly purchased in semi-finished/processed form: aluminium, magnesium, lithium, graphite, nickel and copper (page 83). Data sources combine direct ERP measurements, technical specifications, and estimates scaled by production/sales volumes or revenue for companies lacking primary data (pages 84-85).

Resource outflows

Reference: page 85.

Emak's production is mainly assembly-based, so waste is largely limited to paper/cardboard packaging and wooden pallets. Two vertical (raw-material-to-finished-product) processes are noted as more waste-intensive: the Speed Group's nylon-line extrusion, accounting for "around 75% of the plastic waste generated by the Group's production companies," and the Pozzilli plant's deck production (stamping, welding, painting), accounting for "about 50% of the metal waste generated by the Group's production companies."

The Chinese company Tailong's aluminium-cylinder nickel-plating process is served by a wastewater treatment system "managed by a specialized company authorized by the local government." In 2025, hazardous waste accounted for 9.4% of total waste, mainly aqueous washing solutions, sludge and electronic waste; waste data comes from direct measurement at manufacturing companies and turnover-based estimates for commercial companies.

Waste

Reference: page 85 (waste generation, recovery and disposal tables).

Total waste generated in 2025: 2,119,843 kg (2024: 2,358,031 kg), of which hazardous waste 50,909 kg (9.4%) and non-hazardous waste 2,068,934 kg.

Recovery vs. disposal (2025): hazardous waste — recovery 38 kg, disposal 50,871 kg; non-hazardous waste — recovery 2,068,934 kg largely via recycling and other recovery operations against 99,446 kg to disposal per the recovery/disposal summary table. Group-wide totals: waste sent for recovery 2,119,843 kg–range figures and waste sent for disposal captured separately by hazardous/non-hazardous split in the page-85 tables, with non-hazardous recycling as the dominant recovery route (metal, paper/cardboard and plastic streams each in the hundreds of thousands of kg recovered).

2024 comparatives: total waste 2,358,031 kg, hazardous 55,045 kg. The main hazardous streams are aqueous washing liquids and other hazardous waste; the main non-hazardous streams are metal, paper/cardboard and plastic.

Policies related to own workforce

Reference: pages 87-88.

The Group's Code of Ethics is grounded in the Universal Declaration of Human Rights, ILO Conventions and the UN Convention on the Rights of the Child, and explicitly addresses discrimination, forced/compulsory labour and child labour. A dedicated Committee of HR representatives from each Italian company coordinates personnel activities across foreign subsidiaries, supported by a global HR platform standardising performance evaluation, recruitment and succession planning.

"100% of the activities at Emak S.p.A are subject to audits regarding respect for human rights or assessment of the impact on human rights." In March 2025 the parent company obtained UNI/PdR 125:2022 gender-equality certification. Speed Line South Africa adheres to the ETI Base Code. Disability inclusion follows Italian Law 68/99 and the U.S. EEOC guidelines (page 87-88). "Measures to remedy any negative impacts on human rights would be established based on the specific circumstances of the case that may arise."

Processes for engaging with own workforce and workers' representatives about impacts

Reference: page 89.

Engagement is formalized through national and company-level collective agreements where applicable, and otherwise through established company practice, usually managed by HR. Top management meets periodically with workers' representatives on company performance; informal regular meetings with worker safety representatives address health and safety issues.

Internal climate surveys (varying frequency by company) assess employee satisfaction across organisation, belonging, supervisor relationships, professional development, and health/safety/environment. Annual performance evaluations (interviews or questionnaires) feed into training-needs analysis and the following year's training plans. Tecomec has introduced an internal communication app for information-sharing and topic-specific surveys. Some companies run employer-branding initiatives to increase external attractiveness and reduce turnover.

Processes to remediate negative impacts and channels for own workforce to raise concerns

Reference: pages 89-90.

Emak S.p.A. operates a Whistleblowing Platform, managed by a third party and accessible via the Group website in Italian and English, through which reports go to the Whistleblowing Manager; confidentiality is guaranteed against retaliation. Reports are assessed by bodies responsible for Code of Ethics compliance (the Supervisory Body or designated managers), leading to proportionate disciplinary measures where warranted. Employees are trained on the platform's use.

For health and safety specifically, workers can report hazards anonymously or in person via a dedicated phone line, designated boxes, Supervisors, Workers' Representatives or Health and Safety Representatives. Reports are assessed by competent bodies and, where necessary, external experts, so activity can be suspended or risk removed "immediately" (page 89).

Taking action on material impacts on own workforce

Reference: pages 90-92.

For the actual negative impact (workplace injuries/incidents), the Group applies management systems across all employees and collaborators, in some companies aligned with certification requirements (see S1-14). For the potential negative impact (failure to respect personal freedom/human rights, including child and forced labour), mitigations are the cross-company HR Committee, the global HR platform, communication channels and the Group Code of Ethics (page 90).

For material risks on employment creation/retention, training/education and health & safety, actions include corporate welfare tools, work-life balance measures, training and diversity/equal-opportunity measures (page 91), plus the strict health-and-safety measures under S1-14.

Other 2025 measures: UNI/PdR 125:2022 gender-equality certification; Agres's (Brazil) birth bonus and extended parental leave under "Programa Empresa Cidãdã" (a 100% return-to-work rate after parental leave); disability-inclusion partnerships at Emak S.p.A., Tecomec and Comet; and Tecomec's volunteering partnership with the "Oscar Romero" Social Solidarity Consortium (pages 91-92). "Resources allocated to manage significant impacts have not yet been defined based on the results of the double materiality assessment, but considering the basic assumptions of the business plan."

Targets related to own workforce

Reference: page 92.

"The Emak Group has not yet defined consolidated and quantitative targets related to the material impacts identified in connection with the management of its workforce, although there are intermediate and more granular ones, deriving from ISO standards and referring to specific sites, as in the case of the Parent Company."

Instead, the Group states it has "structured a series of initiatives capable of improving and monitoring, also through certified management systems and dedicated communication channels, the healthiness and safety of the working environment, the development of key competencies, and the promotion of a corporate culture based on inclusion and well-being."

Characteristics of the undertaking's employees

Reference: pages 92-93.

Total employees at 31 December 2025: 2,504 (2024: 2,527, -1%). Male 66.2% (66.8% in 2024), female 33.8%.

Contract type: permanent contracts 95% of the total (2,391 of 2,504); temporary 149; 1 variable-hours/on-call. Full-time: 2,357 (94%); part-time: 147.

Turnover: 338 employees left in 2025, a turnover rate of 13%; by reason, 234 voluntary exits, 27 retirements, 120 dismissals, 3 deaths, 33 other (e.g. end of temporary contracts).

Geographically, employees are concentrated in Italy (1,191), China (365), the US (287), Brazil (293), Poland (40) and other countries across Europe, the Americas and Asia (page 92-93 table).

Characteristics of non-employee workers in the undertaking's own workforce

Reference: page 94.

"In 2025, the average number of non-employee workers within the Group's own workforce amounted to 156 people, a decrease of 20.2% compared to the previous year" (196 in 2024).

By category: agency workers (146), interns (5), coordinated and continuous collaboration/Co.co.co (0.2), workers for recruitment/selection/supply activities (4-5). The average is "calculated as the ratio between the total number of hours worked and the total number of workable hours in a year."

Diversity metrics

Reference: pages 94-95.

By age (2025): up to 29 years 11.3% (283 people); 30-50 years 54.0% (1,353); over 50 years 34.7% (868). Broadly stable versus 2024 (12.1% / 54.3% / 33.6%).

By category and gender (2025): Executives 4.7% of the workforce (0.8% women, 3.9% men); Employees 49.0% (18.0% women, 31.1% men); Workers 46.2% (15.0% women, 31.2% men). Women hold a minority share within every category, most pronounced among Executives.

Social protection

Reference: page 95.

"In 2025, 97% of employees are covered by social protection tools" against illness, unemployment (from the start of employment), work-related injury/acquired disability, parental leave and retirement.

41 employees are not covered: 4 in Brazil (local regulations exclude partners/managers), 33 in the United States ("due to employees' choice despite the option offered by the Company"), and 4 in China (local regulations exclude rehired retirees).

Persons with disabilities

Reference: page 95.

Inclusion follows Italian Law 68/99 and the U.S. EEOC guidelines; "in some cases, the policies are broader than the regulations."

"In 2025, the percentage of employees with disabilities within the Group amounted to 4.0%" (99 employees; 27 women, 72 men), down from 5% (114 employees) in 2024.

Training and skills development metrics

Reference: pages 95-96.

47% of employees (45% of women, 49% of men) took part in periodic performance and career-development reviews in 2025 (2024: 29%).

Training hours: 28,441 total hours in 2025 (2024: 25,253), a per-capita average of 11.4 hours (2024: 10.0). By category: Executives 11 hours, Employees 14, Workers 9.

Training types include language training, health and safety, the 231 Model/anti-corruption, technical/IT courses, managerial development and Executive Master programmes, internal specialist training (hard and soft skills) and individual/group coaching (page 96).

Health and safety metrics

Reference: page 97.

Employees: 54 accidents recorded in 2025 (2024: 49), of which 3 commuting accidents (2024: 1); no fatalities. Accident Frequency Index: 11.72 (2024: 10.88); Injury Severity Index: 0.32 (2024: 0.24); 1,465 days absent due to injuries (2024: 1,083) over 4,606,290 hours worked.

Non-employee workers: 10 accidents (2024: 6), Frequency Index 36.45 (2024: 16.70), Severity Index 0.20 (2024: 0.24).

Occupational diseases (employees): 2 cases in 2025 (2024: 3), no fatalities, 283 days of absence (2024: 270). Main injury types are contusions, lacerations, muscle strains, joint pain, sprains and fractures.

Work-life balance metrics

Reference: page 98.

Corporate welfare tools include individual remote-working agreements, flexible clock-in/clock-out hours, and part-time arrangements for parents of young children.

Family leave: 99% of employees are eligible for family leave (2024: 99%); 5% of eligible employees took family leave in 2025 (4% of eligible women, 5% of eligible men), down from 7% in 2024.

Compensation metrics (pay gap and total compensation)

Reference: page 98.

The pay-ratio calculation includes fixed base salary, allowances, bonuses, commissions and variable MBO components paid during 2025 to employees in service at 31 December 2025 (excluding 2025 hires), plus long-term incentives on an accrual basis.

"The ratio between the total annual compensation of the highest-paid person and the median total annual compensation of all employees (excluding the aforementioned person) is 14."

No gender pay-gap percentage is disclosed in this paragraph; the ESRS Content Index marks the related EU Datapoint Table entries (e.g. excessive CEO pay ratio) separately.

Incidents, complaints and severe human rights impacts

Reference: page 98.

"During the reporting period, as well as the two preceding years, no incidents of discrimination, including harassment, were reported or identified, nor were any serious human rights incidents identified."

Discrimination is defined in the report to cover gender, race or ethnic origin, nationality, religion or personal beliefs, disability, age, sexual orientation or other relevant grounds (footnote 38, page 98).

Policies related to value chain workers

Reference: page 100.

No dedicated, formalised value-chain-worker policy exists; the Group instead relies on its Code of Ethics, shared with all new suppliers, which explicitly prohibits child labour, forced labour and discriminatory or coercive practices, in line with the Universal Declaration of Human Rights, ILO Conventions and the UN Convention on the Rights of the Child.

Main suppliers sign a commitment to comply with international social standards — avoiding child/forced labour, ensuring safe working conditions, respecting freedom of association and collective bargaining, prohibiting discrimination/verbal abuse/corporal punishment, and guaranteeing adequate wages and legally compliant working hours. Footnote: "The Group does not have a Supplier Code of Conduct" (page 100). Periodic audits focus on suppliers in countries with less stringent regulations. "In 2025, no cases of non-compliance with international human-rights principles... were reported."

Processes for engaging with value chain workers about impacts

Reference: page 100.

"While recognising the importance of actively engaging workers throughout the entire value chain, the Group is still evaluating and developing a structured and consolidated approach." Current engagement consists of targeted initiatives rather than a uniform, continuous mechanism; one example is engaging a sample of value-chain workers via questionnaire during the prior year's double materiality assessment update.

Processes to remediate negative impacts and channels for value chain workers to raise concerns

Reference: page 101.

"To date, the Group does not have a unified process for reporting concerns." Emak S.p.A.'s Whistleblowing Platform is available to all workers in the value chain, in Italian and English, for reports on Code of Ethics compliance, with confidentiality guaranteed against retaliation. Reports are assessed by competent bodies, leading to proportionate disciplinary measures where warranted.

Taking action on material impacts on value chain workers

Reference: page 101.

Supplier selection and contracting use transparent, non-discriminatory procedures weighing competitiveness, quality, and environmental/social performance; Ethical-Environmental-Quality certifications are treated as an added value. Evaluation uses checklists plus on-site audits by Quality and Purchasing teams, producing qualitative outputs (non-conformities reported to the Certified Systems Manager and Purchasing Manager, with a shared corrective action plan). Periodic audits cover injuries, training and safety via targeted questionnaires/checklists.

"During 2025, the audits did not reveal any violations by suppliers regarding social matters or respect for human rights... No significant incidents or human rights violations have been reported along the value chain." Corrective-action decisions rest with the dedicated teams of individual companies. "Resources allocated to manage material impacts have not yet been defined on the basis of the outcomes of the double materiality assessment, but in consideration of the underlying assumptions of the industrial plan."

Targets related to managing material negative impacts, advancing positive impacts, and managing material risks and opportunities

Reference: page 102.

"As of today, the Group has not defined quantitative targets related to the material impacts identified. The only qualitative objective established is to maintain a supplier base that adheres to high social and ethical standards, with the aim of preventing potential negative impacts on workers within the value chain." Progress is pursued through the supplier assessments described under S2-4, with outcomes shared back with suppliers.

Policies related to consumers and end-users

Reference: page 103.

No formalised consumer-facing policy exists, but the Group states its commitment to product quality, product/service safety, and truthful, accurate, non-misleading advertising and communications, in compliance with anti-money-laundering, data-protection and anti-usury regulation.

Commitments to consumers/end-users, including on human rights, flow through the Code of Ethics (Universal Declaration of Human Rights, ILO Conventions, UN Convention on the Rights of the Child). ISO 9001-certified Group companies apply design, production and quality-control procedures for incoming and outgoing products. A footnote states that value-chain information on UN Global Compact/OECD Guidelines violations affecting consumers is not reported, relying on the phase-in provision under Article 3(4) of Legislative Decree 125/2024 (footnote 40, page 103).

Processes for engaging with consumers and end-users about impacts

Reference: pages 103-104.

The Group participates in national/local trade fairs and maintains an ongoing relationship with its sales network, which is "the first line of contact with the public." Feedback is collected indirectly through distributors and analysed to refine offerings.

The Group is a member of EGMF (European garden machinery manufacturers association) and EUROMOT (European engine manufacturers association), which track product-directive and emissions-framework developments. The Board holds operational responsibility for ensuring stakeholder engagement occurs and shapes the Group's approach; commercial, technical and quality-assurance functions report to it. "The Group's commercial offering is not specifically intended for particularly vulnerable users."

Processes to remediate negative impacts and channels for consumers and end-users to raise concerns

Reference: page 104.

Consumers/end-users can raise concerns via whistleblowing systems, direct communication with Group companies, or retailers as the primary interface; channel information is on Group and retailer websites.

If a Group responsibility is identified, "the necessary corrective actions are implemented, ranging from communications to the market, to technical modifications and up to possible recalls (where a defect may pose significant risks)." An issue is considered resolved "when no further reports relating to the same case are received."

Taking action on material impacts on consumers and end-users

Reference: pages 104-105.

Product certification follows the Machinery Directive and sub-directives on electromagnetic compatibility, vibrations, emissions and noise; ISO 9001-certified companies apply design/production/quality-control procedures. Actions on negative impacts and opportunities are defined by the commercial, technical and quality-assurance functions and assessed via economic/financial results and feedback from the sales network or regulators.

"In 2025, as in the two preceding financial years, no serious issues or incidents related to human rights involving consumers and/or end users were identified," nor non-compliance with the UN Guiding Principles, ILO Declaration, or OECD Guidelines involving this group. "Resources allocated to manage the material impacts have not yet been defined on the basis of the results of the double-materiality assessment, but in consideration of the underlying assumptions of the industrial plan."

Targets related to managing material negative impacts, advancing positive impacts, and managing material risks and opportunities

Reference: page 105.

"Quantitative targets connected to the material impacts identified with reference to consumers and/or end users have not yet been defined at Group level. Individual companies are given managerial autonomy to set any internal targets."

Business conduct policies and corporate culture

Reference: pages 107-108.

Italian Group companies apply the 231/2001 Organisation, Management and Control Model; non-Italian companies follow local regulation and, where stricter, the Code of Ethics. The Code of Ethics defines corporate principles — fairness, competence, team spirit, innovative mindset, impartiality and honesty, anti-corruption, respect for people, transparency, confidentiality, and combining economic/social/environmental sustainability — and applies to all who act on the Group's behalf.

Executives and members of the Administrative, Supervisory and Management Bodies are identified as the functions most at risk of active/passive corruption. The Code is published in Italian and English on the Group's website. Reporting channels compliant with Directive (EU) 2019/1937 use encryption to protect whistleblower and report confidentiality, with a dedicated trained body managing them; all employees receive mandatory whistleblowing training (page 107-108).

Management of relationships with suppliers

Reference: pages 108-109.

The Corporate Purchasing Department coordinates supply-chain optimisation and classifies main suppliers into Partner, Strategic and Part Supplier tiers based on strategic importance, performance, replaceability, interdependence and financial risk. For critical/strategic purchases the Group maintains a high proportion of double sourcing.

Supplier selection uses transparent, non-discriminatory criteria including environmental/social performance and Code of Ethics compliance; Ethical-Environmental-Quality certification is a selection plus. Evaluation combines checklists and on-site audits; non-European suppliers (higher perceived risk) are also assessed via a dedicated ethics checklist during Purchasing-Quality audits, managed by local teams under Italian oversight. "Based on the quality audits received, the Group does not have high-risk suppliers concerning environmental, social and human rights issues" (page 109). No formal payment-terms procedure exists in the Code; terms are agreed at negotiation and verified per transaction by the administrative office (page 109).

Prevention and detection of corruption and bribery

Reference: page 109.

All individuals acting for the Group must behave ethically per the Code of Ethics; illegal, collusive or corrupt practices (including solicitation of advantages, directly or via third parties) are prohibited. The 231/2001 Organizational Model addresses corporate crimes including extortion, undue inducement and corruption, supported by manual and computerised procedures with control points. "In the event of a confirmed case of corruption, the Board of Directors would be informed by the delegates at the first useful meeting or, if necessary, in a specially convened session."

Anti-corruption training (2025): Executives — 118 total recipients, 14 trained (11.9%); Administrative/management/control bodies — 13 total, none trained (0.0%); Other at-risk functions — 2,386 total, 8 trained (0.3%); Other own workers — 2,401 total, 263 trained (11.0%) (page 109-110). Main topics: Legislative Decree 231/2001, the Code of Ethics and anti-corruption policies.

Targets related to business conduct

Back-filled from the G1 chapter's MDR-T material (anti-corruption training coverage and incident tracking, pages 109-110). This report was prepared under the 2023 ESRS, which had no standalone G1-3 targets DR (business-conduct targets fell under MDR-T).

No stated numeric target for business-conduct outcomes appears in the G1 chapter. The nearest disclosure is effectiveness tracked in the absence of a formal target: anti-corruption training coverage is reported for two consecutive years by recipient category — e.g. Executives 11.9% trained in both 2025 and 2024; Other own workers 11.0% in 2025 versus 0.3% in 2024's comparable line; total training hours delivered (89 hours across categories in the visible detail, page 110) — and G1-4 tracks confirmed corruption incidents at zero for three consecutive years ("as well as in the two preceding years, there were no convictions for violations of laws against active and passive corruption, nor were any cases related to the same issue identified").

No statement in the report explicitly frames these as a formal target, but they constitute year-on-year tracking of business-conduct effectiveness in the absence of one.

Incidents of corruption or bribery

Reference: page 110.

"In 2025, as well as in the two preceding years, there were no convictions for violations of laws against active and passive corruption, nor were any cases related to the same issue identified."