Salvatore Ferragamo S.p.A.

Salvatore Ferragamo sets out the composition and diversity of its administrative, management and supervisory bodies. The Board of Directors has 10 members chaired by Leonardo Ferragamo, with Angelica Visconti as Deputy Chair and Marco Gobbetti as CEO and General Manager. Gender balance is 6 male and 4 female members (60% / 40%), split into 3 executive members (all male) and 7 non-executive members; the percentage of independent members is 30%. All ten members have experience in the Company's sectors, products and geographical areas, and three directors have sustainability experience: Giacomo (James) Ferragamo, who is also Chief Transformation & Sustainability Officer, Umberto Tombari and Patrizia Michela Giangualano. There are no board members specifically representing employees. The Board has assigned responsibility for corporate sustainability to the Control and Risks Committee, composed of non-executive independent directors Patrizia Michela Giangualano (Chair), Laura Donnini and Sara Ferrero, which examines the Double Materiality Analysis and the Sustainability Reporting and provides non-binding opinions. The Board is supported by the Board of Statutory Auditors, the Supervisory Body and the independent auditors KPMG S.p.A. Reference: page 108

The Board of Directors runs business operations and is vested with all powers of ordinary and extraordinary administration except those reserved to the Shareholders' Meeting. The administrative, management and supervisory bodies and their committees are regularly informed about relevant impacts, risks and opportunities, the implementation of due diligence and the results and effectiveness of policies, actions, metrics and objectives. The Chief Sustainability & Transformation Officer sits on the Board and oversees sustainability, and an ESG Steering Committee, chaired by that officer and made up of the CEO's direct reports, meets every two months to track the Sustainability Plan. When the annually updated materiality analysis is presented, the Control and Risks Committee verifies the approach and the Board is then called upon to approve the results. The internal control and risk management system relies on bodies including the Board of Statutory Auditors, the Control and Risks Committee, the Internal Audit Manager, the Head of Risk Management, the Head of Regulatory Compliance, the Manager charged with preparing financial reports under art. 154-bis TUF, the Sustainability Reporting Manager, the Supervisory Body under Italian Legislative Decree 231/2001 and the Ethics Committee. The Sustainability Policy, first developed in 2017 and updated in 2024, is supervised by the Sustainability Function. Reference: page 110

Since 2023, in line with the Corporate Governance Code and industry best practices, Ferragamo has linked the achievement of certain Sustainability Plan targets to part of the short- and long-term variable remuneration of managers, directors and individual contributors. The incentive plans include a Short-Term Incentive (STI), an annual bonus awarded to approximately 650 management employees based on regional and group financial performance, group ESG performance, strategic functional priorities and individual objectives; a Bright Program for retail positions; a three-year share-based Long-Term Incentive (LTI) linked to financial performance and ESG metrics; and a performance bonus for Italy. STI KPIs cover emissions reduction with a focus on Scope 3, increased use of low-climate-impact raw materials, and circularity. The portion of variable remuneration linked to sustainability goals was 20% for the CEO's STI plan, 10% for other executives and 5% for other beneficiaries, while for the LTI plan 20% of variable remuneration is linked to sustainability goals for all beneficiaries. The weighting of ESG goals is to be strengthened for 2025, as detailed in the Remuneration Report approved annually by the Board. Reference: page 114

Ferragamo recognizes the importance of due diligence and states it is committed to achieving full compliance with applicable regulations in the coming years. The Group reports that it is currently implementing measures to fill any gaps that may arise, including adopting new company policies, updating internal processes and providing ongoing training of personnel to build awareness and competence in compliance matters. The stated aim is to create a consolidated, robust and sustainable due diligence process that complies with regulations and creates value for the Company and its stakeholders. The report maps the core elements of sustainability due diligence (embedding due diligence in governance and strategy, engaging affected stakeholders, identifying and assessing adverse impacts, taking action, and tracking effectiveness) to the relevant paragraphs of the sustainability statement, including GOV-1, GOV-2, GOV-3, SBM-2, SBM-3, IRO-1 and the topical action disclosures. Reference: page 115

In 2024 the Ferragamo Group launched a project to define and implement an Internal Control of Sustainability Reporting (ICSR) in response to the ESRS, developed according to the COSO Framework SCIGR and integrated into the Group's risk management and internal control system. Through the Sustainability Reporting Manager, the Group has defined a control and reporting system whose components include Risk and Control Matrices describing ESG risks and controls for each relevant Disclosure Requirement, a Board-approved business process for preparing the reporting, a Board-approved regulation of the Sustainability Reporting Manager, an internal certification process, and an external certification process under art. 154-bis, paragraph 5-ter of Italian Legislative Decree 58/1998. Periodic checks of the operational effectiveness of the controls supporting the certification process are due to start in 2025, coordinated by the Group Internal Control Function. Materiality thresholds are defined to prioritize the quantitatively material DRs, and the main reporting risks identified are inaccuracy and incompleteness of data, errors in calculating indicators, and non-compliance with ESRS requirements. The Sustainability Reporting Manager reports to the Board of Directors and the Control and Risks Committee, in the presence of the Board of Statutory Auditors, at least once a year. Reference: page 116

The Group's strategy, business model and value chain are described in section 3 of the Annual Report, with material sustainability topics presented in ESRS 2 SBM-3. Ferragamo's strategy aims to strengthen its position in the global luxury market by putting the product at the heart of the strategy, infusing new energy into the brand, enriching the customer experience and prioritizing digital initiatives. The business model centers on Made in Italy, sourcing products and services almost exclusively from Tier 1 and Tier 2 Italian suppliers and limiting subcontracting to one tier to monitor quality; distribution runs through directly operated stores (DOS), third-party operated stores (TPOS) and a wholesale multi-brand channel. The Sustainability Plan, first adopted in 2017 and updated annually, has a three-year horizon (2025-2027) and rests on five pillars: Moving towards net-zero emissions, Fostering materials innovation, Leading a responsible value chain, Empowering our people, and Creating value for global communities. The Plan identifies 15 specific targets, including achieving Net Zero by 2050, a 42% reduction in absolute Scope 1 and 2 GHG emissions by 2029 versus 2019, a 42% reduction in absolute Scope 3 emissions by 2029, 100% renewable energy across operations by 2030, and elimination of single-use virgin plastic from packaging by 2027. Ferragamo has been a member of the Fashion Pact since 2019. Reference: page 119

Ferragamo identifies and engages a broad set of internal and external stakeholders, including employees, shareholders, investors, distributors, suppliers and contract manufacturers, final customers, schools and universities, regulatory and governmental bodies, local communities, NGOs and non-profit organizations, media and influencers, trade associations, and financial and non-financial rating agencies. Engagement runs through consultations, regular meetings, partnerships and project collaboration, with the aim of taking stakeholder expectations into account in decision-making. The report tabulates, by stakeholder category, the commitments, the engagement tools (for example the Virtual Showroom and ClientiAmo App for customers, Investor Relations and the Shareholders' Meeting for investors, and online questionnaires, the FerragamoLink platform and the Process Factory project for suppliers) and the expectations of each group. In line with 2023, the Group engaged a sample of 16 direct and indirect suppliers in updating the materiality analysis, with an overall response rate of 50% (69% direct suppliers and contract manufacturers, 31% indirect). Supplier due diligence is carried out through self-assessment questionnaires and on-site audits by a specialized external company against the Supplier Code of Conduct. The administrative, management and supervisory bodies are informed of stakeholder views through the presentation and approval of the double materiality analysis. Reference: page 122

The materiality assessment identified a number of significant impacts, risks and opportunities across the Group's operations and value chain, both upstream and downstream. In response, the Group is committed to pursuing the 15 targets grouped under the 5 strategic pillars of its Sustainability Plan, which has a 2027 time horizon and also includes longer-dated targets such as Net Zero by 2050 and energy/emission targets by 2029/30. The current financial impact of the risks and opportunities identified through the double materiality analysis is described as limited; resources have been allocated to ensure compliance with the CSRD and the EU Taxonomy, to hire new resources for the Sustainability Function and to implement the Sustainability Plan actions. Compared to the previous report, the only difference in material topics was the redefinition of "Respect for biodiversity" as "Respect for biodiversity and animal welfare". Following the double materiality process, Ferragamo identified only one specific impact under the Brand Experience topic, not related to the ESRS disclosure requirements, concerning support for Made-in-Italy products through Italian artisans and the textile-manufacturing sector. Reference: page 132

In 2024 the Group carried out its double materiality analysis in accordance with ESRS 1 Section 3 ("Double materiality as the basis for sustainability disclosures") and EFRAG's IG 1. Potentially material impacts, positive and negative, current and potential, were identified through contextual analysis, comparison with industry peers and reference to the issues in ESRS AR 16. Impacts were rated by company representatives on a scale of 1 to 5 across severity (scale and scope) and likelihood, with a single stakeholder vote per impact; those below the quantitative threshold of 1 were treated as not material. Risks and opportunities were assessed on the Group's Enterprise Risk Management scales across financial, operational, reputational and regulatory compliance dimensions, and were considered not material if rated "low" in two of three dimensions. Sources drawn on included the ERM system, the COSO framework on ESG, the WEF and the Strategic Plan, and external analyses in 2023 and 2024 identified four categories of climate transition risk (market, legislative/regulatory, technological and reputational). Biodiversity was assessed using the SBTN Technical Guidelines (Step 1a Materiality Screening), identifying water and land use, climate change and water and soil pollution as the main pressure categories, with no need for biodiversity mitigation measures in operations. The process was overseen by the CSO, shared with the Control and Risks Committee and Top Management, and approved by the Board of Directors on 14 November 2024; the analysis is updated annually. Reference: page 133

The report sets out, in tabular form, the ESRS Disclosure Requirements covered by Ferragamo's sustainability statement, mapping each to its section, page reference and any phase-in. For ESRS 2 it lists BP-1 and BP-2 (p. 107), GOV-1 (pp. 108-110), GOV-2 (pp. 110-114), GOV-3 (pp. 114-115), GOV-4 (p. 115), GOV-5 (pp. 116-118), SBM-1 (pp. 119-121), SBM-2 (pp. 122-131), SBM-3 (p. 132), IRO-1 (pp. 133-135) and IRO-2 (pp. 136-145). It also covers the EU Taxonomy disclosure under art. 8 of Regulation (EU) 2020/852 (pp. 149-158) and the topical standards, including ESRS E1 Climate change, E2 Pollution, E3 Water and marine resources, E4 Biodiversity and ecosystems, E5 Resource use and circular economy, and the social standards S1 to S4. Several disclosures are flagged as phased-in, including the anticipated financial effects requirements E3-5, E4-6 and E5-6. Reference: page 136

Salvatore Ferragamo has defined actions and targets for reducing and offsetting CO2 emissions within its Sustainability Plan, which it frames as a first step towards a formal Transition Plan. In August 2020 the Science Based Targets initiative approved two targets for the Company: a 42% reduction in Scope 1 and Scope 2 absolute GHG emissions by 2029 against a 2019 baseline, and a 42% reduction in Scope 3 absolute emissions from purchased goods and services and downstream transportation and distribution by 2029 against 2019. The Group also introduced a target to reach net-zero emissions by 2050. The update and resubmission of the SBT targets, including FLAG and net-zero targets, is currently underway. The Group aims to formalize a Transition Plan by 2026 that links the main actions of the Sustainability Plan to the related reduction of greenhouse gas emissions. Reference: page 159

The Group has prepared a Sustainability Policy setting out guiding principles for responsible management of social and environmental issues, with contents based on the impacts, risks and opportunities identified in the 2024 double materiality process. The principles are divided into three thematic areas: people and values, environmental protection, and culture and participation, and the Policy applies to internal operations, the value chain and main stakeholders. The Policy was developed in line with the UN Sustainable Development Goals, the UN Guiding Principles on Business and Human Rights, and the ILO Declaration on Fundamental Principles and Rights at Work. To mitigate climate change the Group has set emission reduction targets aligned with the Science-Based Targets to limit global warming to 1.5C above pre-industrial levels, and integrates renewable energy sources to reduce dependence on fossil fuels. The Group is committed to achieving net-zero emissions by 2050. The Chair and the Control and Risks Committee are responsible for implementation of the Policy. Reference: page 160

The Group has implemented several climate actions across own operations and the value chain. Building Management Systems have been installed since 2018 at the Osmannoro Logistics Center, building M and stores, reaching 77 stores worldwide by 2023 with a target of 100 stores by 2025. Building M obtained LEED Platinum certification in 2020, and the retail area now has 14 LEED Gold and 5 LEED Silver certified stores (19 in total). In 2024, 97.9% of the electricity used by the Group worldwide came from renewable sources via guarantees of origin, and the Group is part of a Collective Virtual Power Purchase Agreement aiming to add more than 100,000 MWh per year of renewable electricity. The company fleet replacement in Italy with Plug-in Hybrid or Full Electric vehicles reached a 77% substitution rate in 2024, targeting 85% by 2025, while a new transport model replacing some air transport with sea transport is expected to cut emissions on identified routes by 98.7% from 2025. Other operating expenses for these measures totalled 187,920 euros. Reference: page 162

The defined climate targets form part of the 2025-2027 Sustainability Plan approved by the Board of Directors on 19 December 2024 and are aligned with limiting global warming to 1.5C. The targets are: achieving Net Zero by 2050; a 42% reduction in Scope 1 and Scope 2 absolute GHG emissions by 2029 versus 2019 (Science-Based Target); a 42% reduction in Scope 3 absolute emissions from purchased goods and services and downstream transport and distribution by 2029 versus 2019 (Science-Based Target); and 100% renewable energy across all operations by 2030. The SBT pathway from the 2019 base year to the 2029 target year is for Scope 1 plus 2 emissions to fall from 12,248 to 7,104 tCO2eq, and Scope 3 (categories 1 and 9) from 443,646 to 257,314 tCO2eq. The Company has also submitted new near-term Science-Based Targets, with a 2023 baseline and a 2030 target, aiming to reduce emissions by 42% by 2030, currently in the validation phase. Reference: page 166

Total energy consumption was 39,913.36 MWh in 2024, down from 41,196.52 MWh in 2023. Total energy consumption from renewable sources was 34,344.49 MWh in 2024 (versus 30,010.4 MWh in 2023), giving renewable sources an 86% share of total energy consumption in 2024 (73% in 2023). This included 33,297.49 MWh of purchased electricity, heat, steam and cooling from renewable sources (GO/RECs) and 1,047.00 MWh of self-generated non-fuel renewable energy. Fuel consumption from crude oil and petroleum products was 2,541.67 MWh and from natural gas was 2,315.28 MWh, with no consumption from nuclear sources. Energy intensity was 38.6 MWh/M euro in 2024, up from 35.6 MWh/M euro in 2023. Reference: page 167

In 2024 the Group recalculated emissions for Scope 3 categories 1, 4 and 9, and Scope 3 figures were restated from the prior report. Gross Scope 1 GHG emissions were 1,092 tCO2eq in 2024 (down 3.2% from 1,128). Gross location-based Scope 2 was 14,533 tCO2eq (down 0.7% from 14,634) and gross market-based Scope 2 was 382 tCO2eq (down 87.7% from 3,095). Total gross Scope 3 emissions were 130,815 tCO2eq in 2024, down 15.1% from 154,008, with purchased goods and services at 88,032, capital goods at 15,071, upstream transportation and distribution at 15,499, and downstream transportation at 1,824. Total location-based GHG emissions were 146,440 tCO2eq and total market-based GHG emissions were 132,288 tCO2eq in 2024 (down 16.4% from 158,230). Emission intensity was 128 tCO2eq/M euro in 2024, down from 136 in 2023 and 224 in 2022. Reference: page 168

There were no GHG emissions mitigation projects financed through carbon credits in 2024. Reference: page 171

The Group continued to implement a Climate Change Risk Management Framework and during 2024 carried out an initial assessment of material physical risks such as floods, tornadoes and hailstorms. The analyses focused on forty assets considered representative of business activities, including Ferragamo-owned assets, directly operated stores relevant to net sales, and key business suppliers, using climate tools such as the IPCC WGI Interactive Atlas and Copernicus, considering the worst-case scenario RCP/SSP 8.5 over short, medium (2030) and long term (2050) horizons. The result was that a single asset, located in Italy, was considered to be at material physical risk before adaptation measures, with its materiality based on economic value and strategic importance and a material impact in terms of lost revenues. However, that asset is equipped with adaptation measures and extensive insurance coverage, making the net financial impact negligible. The expected short-term financial impact on the Group, taking into account physical and insurance adaptation measures, is limited, and no significant financial impact is expected in the medium and long term. Reference: page 171

The Sustainability Policy mentioned in ESRS E1 includes specific measures to manage pollution impacts, risks and opportunities, with contents derived from the 2024 double materiality process and covering the prevention and control of environmental pollution. Through this Policy the Group commits to mitigating negative impacts on water quality by monitoring water resources in direct operations and the supply chain, and takes specific measures to reduce the environmental impact of wastewater discharges. In 2024 the Group published its Responsible Sourcing Commitment to reduce and substitute substances of concern and phase out substances of very high concern. Since 2019 the Group requires suppliers to sign a Supplier Code of Conduct and conducts audits, taking corrective action or terminating relationships in serious cases of non-compliance. Suppliers in the manufacturing process must sign the Group's Restricted Substances List (RSL) as part of qualification, and the Board of Directors is the highest level responsible for the policy, supported by the Chief Sustainability and Transformation Officer. Reference: page 172

Since 2016 the Group has adopted a Restricted Substances List (RSL) that establishes stricter criteria than current REACH, updated during 2024 with new substances, limits and methods, which all suppliers and contract manufacturers were required to sign. Environmental and toxicity tests are conducted on components and finished products including accessories, footwear structures, leather, textiles, leather goods, ready to wear and rubber soles, with a system of random testing to identify hazardous substances. The Group has adopted the ZDHC methodology and in 2024 collected supply chain information for 63% of the value of leather purchased and 56% of the value of fabrics purchased. Approximately 47% of the value of leather (up 10% on 2023) and 48% of the value of fabrics (up 23% on 2023) was purchased from certified Level 1 or 2 suppliers adhering to the Supplier To Zero Program, while 50% of the value of leather and 80% of the value of textiles came from companies that completed a ClearStream wastewater report. The data collection was expanded to metal accessories suppliers, covering 63% of purchase value, of which 3% was supplied by Level 1 certified companies. Pollution-related operating expenses were 5,600 euros. Reference: page 173

The defined pollution targets form part of the 2025-2027 Sustainability Plan, with a 2024 baseline, approved by the Board of Directors on 19 December 2024. The objective, under the Leading a Responsible Value Chain building block (ID 8), is to ensure the responsible use of chemical agents (ZDHC) for a progressive phase-out while maximizing efficiency in the use of water resources, with a 2027 timing. Compliance with the RSL together with suppliers' progressive compliance with the ZDHC framework enables the prevention and control of emissions to water and soil and the use of substances of concern or high hazard level. The target is closely related to the Group's Sustainability Policy section on Water, waste and ecosystem stewardship and to the Responsible Sourcing Policy. The targets are not imposed by regulatory requirements but represent a voluntary and strategic choice. Reference: page 175

Since 2016 the Group has addressed chemical safety through its Restricted Substances List (RSL), which establishes stricter criteria than REACH and indicates the maximum concentration thresholds for substances of concern in the production phases. The RSL was drawn up voluntarily to eliminate or restrict the use of certain chemical substances, in line with restrictions imposed in the geographical areas where Ferragamo products are marketed. Compliance with these thresholds is ensured through testing. The RSL was updated in 2024 to include new substances, limits and methods, and all suppliers and contract manufacturers with direct and indirect relationships with the Group were asked to sign it. Reference: page 175

The Group has formalized its commitment to the management of water and marine resources through the Sustainability Policy already referenced for pollution and climate change, with water resources addressed together with cross-cutting issues such as water pollution and the protection of marine ecosystems. The Group is committed to the sustainable use of water in its operations and throughout the value chain, and through the Supplier Code of Conduct requires the highest standards in water withdrawal and discharge management. Regarding substances of concern and of very high concern, the Group published its Responsible Sourcing Commitment in 2024, with further details in section E2-1. Reference: page 176

A milestone in consumption optimization is the LEED Platinum certification, obtained in 2016 by building Q of the Osmannoro site and the Osmannoro Logistics Hub, a building of approximately 20,000 square meters inaugurated in 2018, where water consumption has been optimized leading to a 50% reduction in total water consumption for irrigation and a 100% reduction in drinking water consumption. In 2024 the Group defined the Water Action Plan as part of its Sustainability Policy, expected to be implemented in 2025, aiming to map at least 30% of local units with a focus on areas at extremely high water risk in 2025. The Group increased collection of primary data from global stores in 2024 and, by mapping key suppliers, monitored the water consumption of 80% of the Group's suppliers in terms of expenditure. Water-related and marine risks were given a focus within the ESG risk analysis process. Water-related operating expenses were 75,220 euros. Reference: page 176

The defined water targets form part of the 2025-2027 Sustainability Plan, with a 2024 baseline, approved by the Board of Directors on 19 December 2024. The objective, under the Leading a Responsible Value Chain building block (ID 8), is to ensure the responsible use of chemical agents (ZDHC) for a progressive phase-out while maximizing efficiency in the use of water resources, with results to be achieved by 2027. The target is closely related to the Group's Sustainability Policy section on Water, waste and ecosystem stewardship and to the Responsible Sourcing Policy. With regard to direct water consumption across offices, stores, production sites and the logistics hub, the Group confirms that almost all water supply comes from aqueducts and that consumption, mainly related to hygienic use, is not particularly significant. The targets are voluntary rather than imposed by regulatory requirements. Reference: page 177

Water consumption related to own operations is reported, as this ESRS was found to be material along the value chain. Total water consumption in 2024 was 127,295.17 m3 across all areas, of which 52,031.24 m3 was in areas at water risk, including areas of high water stress. Total water recycled and reused and total water stored were not reported. Water intensity in 2024 was 122.99 m3 per million of revenue, based on revenues of 1,035.00 million. Reference: page 177

Strategic and business resilience considerations related to biodiversity have not yet been formalized in a structured analysis, but the Group considers these issues as part of defining objectives and business continuity, including impacts along the entire value chain. During 2023 and 2024 the Group conducted an in-depth analysis of the biodiversity impacts and dependencies of its value chain, using the WWF Biodiversity Risk Filter and aligning with the SBTN methodological framework. The analysis found that Tier 4 is responsible for the greatest impacts along the leather supply chain, particularly climate change, water consumption and eutrophication, and identified main impacts related to the leather supply chain responsible for significant pressure on land use, estimated at around 89,897 hectares, concentrated in Italy, Spain, the Netherlands and France. The Group requires suppliers to operate in accordance with CITES when sourcing hides from endangered species, a commitment detailed in the Animal Welfare Policy. Ferragamo does not carry out activities with a direct impact on biodiversity, so impacts arise in the upstream value chain. Reference: page 178

Salvatore Ferragamo has defined its commitment to safeguarding and promoting biodiversity through the Biodiversity Manifesto, which addresses biodiversity risks and impacts through a structured approach focused on prevention, mitigation and restoration, structured around three principles: promotion of collaboration and innovation, continuous improvement in operations and sourcing, and support for ecosystem protection and resilience. The Manifesto has been adopted by the Company and its subsidiaries and is promoted across operations, the value chain and main stakeholders, with the Sustainability Function responsible for supervising the policy. The Manifesto's objectives were developed following third-party regulations and initiatives including the Science-based Targets for Nature, the Convention on Biological Diversity, the Post-2020 Global Biodiversity Framework, the EU Biodiversity Strategy for 2030 and the SDGs. The objectives relate to promoting traceability of raw materials, involving suppliers in responsible sourcing, promoting certifications and switching to preferred materials with lower environmental impact. The Group prioritizes avoiding activities that degrade ecosystems such as deforestation, and references the EU Deforestation-free Products Regulation (EUDR) and the EcoDesign for Sustainable Products Regulation (ESPR). Reference: page 178

The Group's biodiversity actions build on signing the Fashion Pact in 2019 and formalizing the Biodiversity Manifesto in 2020, and include an analysis of impacts and dependencies on nature in line with the SBTN Framework and TNFD guidelines, with an action plan to be defined by 2025 and targeted strategies activated from 2026. In packaging, the Group favors FSC-certified paper, and in 2024 81.8% of the Group's paper packaging was FSC/PEFC certified, with a target of 100% by 2026. The Group contributed financially to a research project with the University of Florence (DAGRI) and the Regional Association of Livestock Farmers of Tuscany (ARAT) to protect indigenous and endemic Tuscan cattle breeds in danger of extinction, aiming to activate additional targeted projects by 2026. The Group participated in the Monitor for Circular Fashion and developed a pilot on the traceability and sustainability of the calf leather used for the Fiamma bag, traced through the supply chain in accordance with the ICEC TS_SC410 standard and in compliance with the EUDR (Reg. EU 2023/1115). Biodiversity-related operating expenses were 155,000 euros. Reference: page 179

The defined biodiversity target forms part of the 2025-2027 Sustainability Plan, with a 2024 baseline, approved by the Board of Directors on 19 December 2024. The objective, under the Leading a Responsible Value Chain building block (ID 9), is to support biodiversity preservation and sustainable forest management toward zero deforestation, with a 2027 timing. This qualitative and quantitative target is part of the commitments in the Biodiversity Manifesto and Animal Welfare Policy and covers the entire value chain, including the upstream procurement of raw materials such as leather, cotton and paper, with a particular focus on Tuscany. The timeline foresees significant intermediate results by 2025 and the implementation of targeted strategies and ecosystem conservation projects by 2026, until the final target is reached in 2027. Metrics used for monitoring include the amount of certified raw materials used and the implementation of biodiversity protection projects, and progress is currently on track. Reference: page 181

The progressive reduction of virgin resources has been one of the Group's objectives, with a cross-functional work team dedicated to materials with a low environmental impact. The Group has adopted specific guidelines on materials and fibers to be preferred or avoided, with these objectives set out in the Responsible Sourcing Commitment described in section E2-1. Some content of the Responsible Sourcing Commitment is reiterated in the Sustainability Policy, which describes the importance of transparency and traceability of natural materials at every stage of the supply chain, and reaffirms the commitment to reducing dependence on non-renewable resources. The Group is also committed to responding to product safety and supply chain emergencies in a timely and efficient manner, and communicates these considerations to commercial partners through the Supplier Code of Conduct. Reference: page 182

The Group is committed to reducing waste from its operations and raising employee awareness on management, disposal, reuse and recycling. In line with the ISO 14001:2015 environmental management system adopted for all Italian offices and stores, specific procedures ensure effective waste management and monitoring, including the ratio of hazardous waste to total waste, waste produced relative to turnover, and waste recycled relative to total waste produced. On materials, in 2024 over 99% of the turnover of the Group's suppliers for bovine/sheep hides and fine leathers derived from LWG certified tanneries, with 79% of supplier turnover coming from tanneries with the highest LWG levels (Gold or Silver), aiming for 100% LWG certified leather by 2027. The Group launched a policy to eliminate disposable materials derived from virgin fossil sources in packaging, in line with the EU Packaging and Packaging Waste Regulation (PPWR). On circularity, the Group held its first Circularity Hackathon involving 60 colleagues, and reached a reuse of 36.5% of available deadstock at the Osmannoro site in 2024 compared to end of 2023. Materials and circularity operating expenses were 68,350 euros. Reference: page 182

The defined resource use and circular economy targets form part of the 2025-2027 Sustainability Plan approved by the Board of Directors on 19 December 2024. Under the Fostering materials innovation building block, the objectives are: 25% of raw materials with lower environmental impact by 2025 (ID 4); elimination of single-use virgin plastic from packaging by 2027 (ID 5); and implement circularity principles across all Ferragamo operations and products lifecycle by 2027 (ID 6). The intermediate target of reaching 25% of raw materials with low environmental impact was achieved in 2024, the year used as the baseline for raw materials. The targets cover the entire value chain with a focus on upstream procurement and end-of-life management, applied globally to materials in production and packaging. Methods adopted include life cycle assessment, international sustainability standards and supplier-certified data, developed in accordance with the Fashion Pact guidelines, with progress monitored through annually updated KPIs. Reference: page 186

The Group's main resource inflows consist of raw materials, with leather and B2B and B2C packaging accounting for approximately 80%. Among product raw materials, leather inflow was 1,015.29 tonnes (99.51% certified, LWG), metal 108.41 tonnes, cotton 53.84 tonnes (26.69% certified, GOTS and GRS), wool 23.06 tonnes (9.35% certified), viscose 20.69 tonnes (47.73% certified), silk 14.33 tonnes (59.64% certified), polyester 13.41 tonnes and nylon 8.55 tonnes. Biological materials for components totalled 215.82 tonnes and technical materials for components 235.01 tonnes. For packaging, paper inflow was 953.28 tonnes (81.77% certified, FSC), cardboard 703.68 tonnes (46.38% certified, FSC), cotton 228.94 tonnes, cellulose 67.51 tonnes (100% certified) and plastic 9.02 tonnes (59.49% certified, GRS and recycled). Reference: page 188

Resource outflows are reported as waste, split between waste diverted from disposal and waste directed to disposal. Waste diverted from disposal totalled 712.9 tonnes in 2024 (up from 663.82 in 2023), comprising 1.18 tonnes of hazardous waste (all recycling) and 711.72 tonnes of non-hazardous waste, of which 711.47 tonnes was recycling and 0.25 tonnes preparation for reuse. Waste directed to disposal totalled 420.06 tonnes in 2024 (versus 47.31 in 2023), comprising 0.60 tonnes hazardous (incineration) and 419.46 tonnes non-hazardous (418.32 tonnes landfill and 1.14 tonnes other disposal operations). Total waste generated was 1,132.96 tonnes in 2024 (up from 711.13 in 2023). The Group also offers product repair services and emphasizes durable, repairable products to extend useful life and support the circular economy. Reference: page 190

Total waste generated by the Group was 1,132.96 tonnes in 2024, up from 711.13 tonnes in 2023. Of this, waste diverted from disposal (recovery) was 712.9 tonnes and waste directed to disposal was 420.06 tonnes. Non-recycled waste was 420.06 tonnes, giving a percentage of non-recycled waste of 37.08%, which implies a recycling/recovery share of approximately 63%. Recycling alone accounted for 711.47 tonnes of non-hazardous and 1.18 tonnes of hazardous waste. The reported waste data includes waste generated at the Florence and Milan industrial sites and at foreign offices, with waste abroad mainly consisting of packaging materials such as cardboard, paper and plastic, and headquarters waste including production waste such as leather scraps. Reference: page 190

Salvatore Ferragamo addresses its own workforce primarily through its Sustainability Policy, which covers relationships with employees, external workers and communities and sets out measures to improve the working and social climate inside and outside the Group. Occupational health and safety is treated as a top priority, with the Italian administrative offices and stores holding ISO 45001 certification, and the Group promotes work-life balance through flexible working and wellness programs. Diversity, Equity and Inclusion is governed by a dedicated Inclusion Policy that promotes multiculturalism, equality and equal opportunities, condemns harassment and supports meritocracy; it applies to Group employees, corporate bodies and independent contractors, with the Chief People Officer ultimately responsible for implementation and the Board of Directors responsible for approval. The policy refers to the Universal Declaration of Human Rights and the ILO Discrimination Conventions and formalises support for Valore D and The Female Quotient. Further commitments are set out in the SA8000 policy (rejecting child, forced and compulsory labour), the Code of Ethics, the Global Recruitment Policy and the Responsible Reorganization Commitment. Reference: page 197

In Italy, Ferragamo engages with internal worker representatives (RSU) and trade unions through regular meetings, usually every two months, which can be intensified as needed (for example the supplementary company agreement planned for March 2024). At the regional level there is no structured, standardised consultation with worker representatives on impacts, but initiatives such as the 2024 Great Place to Work survey collected anonymous feedback on topics like inclusive leadership, collaboration and accountability, with regional HR Business Partners able to open dialogue where needed. In Korea, the Company organises quarterly Labor and Management Councils in line with local law. Responsibility for worker engagement sits with the Human Resources Department under the Chief People Officer. The Group also reviewed its internal communication strategy, launching tools such as The Footprint newsletter (10 newsletters in the year, average open rate of 50% to 60% with a peak of 99%), the Ferragamo Together platform, the Bespoke newsletter (64 newsletters, average reach 58% to 81%), Townhall events in March and September 2024, and Osmannoro headquarters videowalls. Reference: page 198

Following EU Directive 2019/1937, Ferragamo updated its Group Whistleblowing Policy, defining channels and requirements for internal and external reports, public disclosures and reports to judicial or accounting authorities, and also updated the Code of Ethics and the Regulations of the Ethics Committee. The reporting system is based on three levels: internal reporting channels managed by the Ethics Committee (including a dedicated web platform), external reporting channels established by competent public authorities, and public disclosure for material breaches. Protections include confidentiality of the whistleblower and other involved persons, protection from retaliation, limitations of liability and support measures from third sector entities. The Ethics Committee, appointed by the Board of Directors, manages reports and oversees the web platform. The policy is promoted through the Compliance Digital Pathway training program, which also covers the Code of Ethics, Anti-Corruption Policy, cybersecurity, data protection and Model 231, and is available in nine languages and offered to all new hires during onboarding. Reference: page 200

In 2024 the Group implemented strategic initiatives organised around three areas linked to its policies. Under the Equitable Talent Journey it revised Talent Acquisition practices, adopted a global Recruitment Policy, added a diversity statement to all global job postings and launched an Employer Branding initiative with Polimoda (a Sustainable Fashion master's degree); a disability hiring roadmap begins with headquarters internships in 2025, and women's empowerment, mentoring and coaching programs were launched with Valore D and The Female Quotient. Under Inclusive Organisation, the Company calculated its adjusted Gender Pay Gap for the first time as at 31 December 2023 at 2.9%, aiming to eliminate it completely by 2030 with interim targets of 2.5% in 2025 and 2% in 2026, and obtained Fair Pay Analyst certification from FPI while pursuing UNI/PdR 125:2022 DEI certification. The first People Manager Program was designed and a Train-the-Trainer program trained 15 internal trainers in Corporate HQ and EMEA. Under Foster Belonging, the first global Engagement Survey covered 6 regions and 26 countries with an 88% response rate, leading to Great Place to Work certification in markets including America, China and Korea, and Employee Resource Groups were established in each region. Welfare measures include remote working of five to eight days a month, flexible benefits, supplementary healthcare and the renewed supplementary agreement with the RSU. Reference: page 201

The workforce objectives are set out in section ESRS 2 SBM-1 and form part of the 2025-2027 Sustainability Plan, which defined three strategic targets to strengthen inclusion, diversity and employee well-being, using a baseline year of 2024 with annual milestones defined in the DEI&B plan. The three targets, all with a 2027 timing, are: Equitable Talent Journey (ID 10), to attract, develop and empower people through an equitable talent journey; Inclusive Organization (ID 11), to spread and ground a culture of diversity, inclusion and equal opportunities; and Foster Belonging (ID 12), to nurture engagement and well-being activities for employees' belonging. Target setting was based on internal analysis and benchmarking with main peers, with results tracked through specific KPIs updated annually and monitored through periodic checks. The main expenses incurred for these measures were 25,143 euro of OpEx for HR Activities, with no associated CapEx. Reference: page 207

As at 31 December 2024 the Salvatore Ferragamo Group had 3,585 employees (headcount), down from 3,677 in 2023, comprising 2,324 women, 1,260 men and 1 not reported. Around 93% of employees were on permanent contracts (3,329 permanent, 247 temporary and 9 non-guaranteed hours). The largest workforce locations were Italy (987), China (810), USA (521), Japan (318) and Korea (260). During 2024 the Group recruited 838 employees (new-hire turnover rate of 23.38%) and 929 employees left (turnover rate of 25.91%), compared with 867 hired and 1,032 leaving in 2023. Reference: page 209

In 2024 the Group had 177 non-employee workers in its own workforce, including interns, external consultants and agency staff. Of these, 39 were self-employed people and 138 were workers provided by undertakings primarily engaged in employment activities (hired for the Group's primary activities). Reference: page 210

In 2024 the Group strengthened its global Diversity, Equity, Inclusion and Belonging (DEI&B) strategy, updating and approving the company policy at Board level around three pillars of fairness, inclusive leadership culture and control and governance systems. Of the 82 Top Management employees, 40 were female (48.78%) and 42 were male (51.22%). Across the total workforce of 3,585, women made up 2,324 (64.83%) and men 1,260 (35.15%), with 1 not reported. By age band, 676 employees were under 30, 2,289 were aged 30-50 and 620 were over 50. By professional category the breakdown was 82 in Top Management, 595 in Middle Management, 2,586 White Collars and 322 Blue Collars. Special emphasis was placed on inclusive language, monitoring of the adjusted Gender Pay Gap and Employee Resource Groups, and one well-founded discrimination report received through the whistleblowing channel led to formal complaints and monitoring actions. Reference: page 211

The Group guarantees that all its employees receive an adequate salary in accordance with the applicable reference parameters in each country in which it operates. As at 31 December 2024 the Company verified that the salary paid was equal to or greater than the adequate wage under the Wageindicator framework, meaning 100% of employees received an adequate salary. This commitment translates into a fair remuneration policy meeting regulatory and market standards and ensuring economic conditions that satisfy criteria of fairness and sustainability. Reference: page 214

The Group is committed to social protection covering key working-life events such as illness, unemployment, work-related injuries, parental leave and retirement, with all Group companies fully complying with local social security requirements. Parental leave policies are adopted globally in line with local requirements, and most employees are covered for pensions by statutory systems or company programs. Some regional exceptions exist: in Argentina and Brazil unemployment is not guaranteed once the employee leaves the undertaking, while in North America there is no guaranteed protection against loss of income due to illness and in the US there is no guaranteed pension coverage. The Group works to apply key protections such as those against work-related injuries and unemployment consistently across all companies while respecting local regulation. Reference: page 214

In 2024 the Group updated its Global Recruitment Policy to make selection processes more inclusive, planned global training for Talent Acquisition staff, and planned an Italian partnership with an association promoting the inclusion of people with disabilities through an internship recruitment campaign. The workforce included 45 persons with disabilities, representing 1.26% of total employees, comprising 27 women (0.76%) and 18 men (0.50%), with none reported as other. Reference: page 215

In 2024 the Group continued training and talent development under its Ferragamo Excellence Model (Core Skills and Managerial Skills), delivering compliance, cybersecurity, AI Act and retail training through the iLearn platform, including the FLAME, Synch and NEX onboarding programs and the People Manager Program supported by the first Train-the-Trainer program (15 internal trainers). Employees received a total of 105,705 training hours in 2024, with an average of 29 hours per employee (32 hours for women and 25 for men), compared with an average of 31 hours in 2023. By category the average hours were 11 for Top Management (916 hours total), 28 for Middle Management (16,783 hours), 33 for White Collars (85,197 hours) and 9 for Blue Collars (2,809 hours). On performance, 98.69% of employees received a performance review in 2024 (3,540 of 3,585 employees, with 10,692 reviews carried out), including 100% of Top Management, and the Talent Review process was extended to all managerial positions. Reference: page 215

The Group maintains high occupational health and safety standards through a dedicated Global HSE function, an Italian Safety Management System and ISO 45001 certification covering 100% of Salvatore Ferragamo S.p.A.'s workers, and in 2024 it also confirmed the SA8000 social responsibility certification for its Italian operations. During 2024 there were 39 cases of injuries among employees, 17 fewer than in 2023, while no injuries occurred among external collaborators, and none of the injuries resulted in loss of life, in line with 2023. The number of recordable work-related injuries was 39 for employees and 0 for non-employee workers, with a rate of recordable work-related injuries of 5.96 for employees and 0 for non-employees. There were 0 deaths due to work-related injuries and ill health, 18 recordable cases of work-related ill health among employees, and 776.50 days lost due to work-related injuries and fatalities. The health and safety management system covered 99.6% of employees and 50.3% of non-employee workers, and the HSE Day on 8 May 2024 was attended by around 550 employees. Reference: page 222

Salvatore Ferragamo applies remuneration policies based on equality, equal opportunity and merit, using collective bargaining agreements in all countries and evaluation systems including Bright (retail), a short-term incentive scheme and local productivity bonuses, with a dashboard for HR managers to monitor the Gender Pay Gap. For 2024 the unadjusted male-to-female pay gap, measured at total level, was 21% for basic salary and 25% for total remuneration; figures vary widely by region and category, with the Parent company showing the largest gaps (32% basic salary and 40% total remuneration at total level, rising to 52% total remuneration in Top Management). The ratio between the highest annual direct remuneration and the median value was 77.75 in 2024, down sharply from 155 in 2023. The separately reported adjusted pay gap is published in the Company's Remuneration Report. All figures were recalculated using purchasing power parity (PPP) rates and IMF data. Reference: page 225

Salvatore Ferragamo applies a rigorous Whistleblowing Policy providing a safe channel for employees and external stakeholders to report violations, and has adopted a Modern Slavery Statement aligned with the UK Modern Slavery Act 2015, the California Transparency in Supply Chains Act 2010, the Australian Modern Slavery Act 2018 and the Canadian Fighting Against Forced Labour and Child Labour in Supply Chains Act 2023. The Group constantly monitors work-related incidents and cases of serious impact on human rights. In 2024 there were no cases of work-related incidents or serious impacts on human rights within its own workforce. The Group remains committed to actively opposing any form of discrimination based on gender, race, ethnic origin, nationality, religion, beliefs, disability, age, sexual orientation or any other factor. Reference: page 227

Salvatore Ferragamo S.p.A. is a signatory of the United Nations Global Compact, pledging to uphold ILO conventions against forced and child labor. Beyond the own-workforce policies in S1-1, the Group maintains a Supplier Code of Conduct setting ethical principles on business ethics, child labor, non-discrimination, health and safety and environmental management, which suppliers must sign and accept, with violations reportable to the Group's Ethics Committee. Additional policies include the Policy against child labor (verifying age at hire, monitoring the supply chain and taking corrective action) applied to all Italian premises and approved by the Board of Directors, plus SA8000 certification held by the Parent company. In 2024 the Group also published its Responsible Sourcing Commitment and maintains a Modern Slavery Statement complying with the UK Modern Slavery Act, California Transparency in Supply Chains Act, Australia Modern Slavery Act and Canada's Fighting Against Forced Labour and Child Labour in Supply Chains Act. The child labor policy references the UN Universal Declaration of Human Rights, the UN Convention on the Rights of the Child, ILO Conventions 138 and 182, Directive 94/33/EC and the SA8000 Standard. Reference: pages 228-229

The Group constantly monitors risks of labor regulation violations across the supply chain, assessing human rights, child labor, forced and compulsory labor, non-discrimination, freedom of association, health and safety, working time and remuneration. Direct suppliers (Tier 1) are required not to exceed the first level of subcontracting (Tier 2), and qualification focuses on technical evaluation, documentation and compliance, managed through the Ferragamo Link platform. The Group's risk assessment confirmed a negligible risk profile for direct service providers and a diversified level of risk among subcontractors, with some finished-product processing stages showing higher risk profiles. Regular risk-based audits of direct suppliers and sub-suppliers are carried out, including worker and management interviews and site inspections, with operational responsibility entrusted to the Operations Function reporting to the Chief Operating Officer. In 2024 a data collection activity on social, energy, water and raw material traceability data was launched with direct suppliers, and in a leather traceability project 33% of strategic tanneries underwent audits, all with positive outcomes. Reference: pages 229-230

Monitoring of Supplier Code of Conduct compliance follows the main ethical and social audit standards, supported by a specialized company, and includes both desktop audits and on-site inspections at suppliers' production sites. The Group also verifies that the Code has been distributed to supplier employees so workers are aware of dedicated reporting structures. Where non-compliance is found, suppliers must implement corrective actions within agreed deadlines, monitored through follow-ups, and the Group reserves the right to terminate business relations in cases of serious or repeated violations or failure to cooperate. Suppliers are encouraged to send reports of alleged or ascertained Code violations to the Group's Ethics Committee, which investigates and promotes corrective action. To strengthen whistleblower protection, an externally managed web platform was adopted that ensures reports cannot be traced, and the Group has adopted and published a Whistleblowing Policy (see also S1-3). Reference: page 231

Corrective actions are monitored through on-site or remote follow-up activities. In 2024, 200 audits were carried out on both direct suppliers and sub-suppliers, a 146% increase versus 2023, with non-conformities followed up in 5 cases on-site and 51 remotely to verify resolution. The most significant critical issues related to health, safety and hygiene in the workplace and, to a lesser extent, environmental and integrity issues and labor conditions. In 19 cases, significant or repeated Code violations by subcontractors led to requests to terminate business relations with direct suppliers. In 2024 no reports or complaints relating to human rights or Supplier Code violations were received, and no critical issues presenting real or potential human rights risks were identified; the Group also developed an ESG vendor rating system with a dedicated checklist created in 2024 for implementation in 2025. Reference: page 232

Under the 2025-2027 Sustainability Plan (baseline 2024, approved by the Board of Directors on 19 December 2024), the Group set target ID 7: "Foster value chain transparency and promote collaboration with business partners to develop shared ESG projects" with a timing of 2027. The target sits within the "Leading a responsible value chain" ESG building block and aligns with the UN Sustainable Development Goals and European ESG standards. The Group uses specific KPIs updated annually and monitored through periodic checks, with the target covering the entire value chain and a particular focus on upstream procurement. Planned actions include increasing supplier audits, raw material traceability and structured ESG data collection from direct and indirect suppliers. The target was developed from a materiality analysis involving direct and indirect suppliers and other strategic stakeholders. Reference: page 233

The Group adopts a series of policies to maintain high ethical standards and properly manage impacts on affected communities. The Sustainability Policy commits to improving community well-being, targeting women, children and vulnerable populations, supporting local economies and working with NGOs and local governments, while the Group also sponsors cultural events including art, cinema, music and fashion. The Code of Ethics emphasizes social responsibility and human rights commitment, referencing the UN Guiding Principles on Business and Human Rights and the ILO Declaration on Fundamental Principles and Rights at Work, and opposing all forms of child labor, forced labor and discrimination. The Group also adopted the Anti-Child Labor Policy (applying to all Italian premises and approved by the Board of Directors) and a Charity Policy providing guidelines for donations by all subsidiaries to charities, foundations and non-profit organizations. The Supplier Code of Conduct further commits suppliers to social responsibility, protection of "Made in Italy" and the fight against counterfeiting, with all policies available in the Download section of the Ferragamo Sustainability Group website. Reference: pages 234-235

The Group engages affected communities through initiatives promoting integration, sustainability and stakeholder dialogue, with a key element being collaboration with universities, schools and business schools. During 2024 the Group organized over 30 Employer Branding initiatives such as company visits, career days, field projects, workshops and lessons with universities including Bocconi, ESSEC, Universita Cattolica, LUISS and IULM, and fashion schools such as Polimoda, Accademia Costume e Moda and Marangoni, in Italy and Europe. The Group also collaborates with charitable organizations including Meyer, the Ethical Fashion Initiative, Corri la Vita and Trisomia 21, and participates in collective associations such as The Fashion Pact, the National Chamber for Italian Fashion and the UN Global Compact. It supports the arts and culture through donations and partnerships including the Fondazione Palazzo Strozzi, and the Ferragamo Museum and Ferragamo Foundation. Engagement activities are coordinated by the Ferragamo Chair's Office, the Ferragamo Museum, the Ferragamo Foundation, the Sustainability Team (reporting to the Chief Transformation & Sustainability Officer) and the HR team (reporting to the Chief People Officer). Reference: pages 235-236

In 2024 the Group launched eight field projects with top luxury-sector schools, including partnerships with Accademia Costume & Moda (Master in Leathergoods), SDA Bocconi MAFED (5 international students), Polimoda (Master in Shoe Design and Master in Sustainable Fashion with 10 students) and Istituto Marangoni (24 participants), and continued the "Adopt a school" project with Altagamma involving 20 students at the Cellini Tornabuoni Institute. It established the Wanda Ferragamo Scholarship awarding 5 children of Group employees scholarships worth 15,000 euros each. In health and scientific research, the five-year collaboration with the Meyer Foundation has enabled treatment of over 60,000 newborns and equipment used in more than 1,000 operations per year, and in 2024 the Group together with the Bank of Italy supported a neurosurgical operating microscope to treat over one hundred children yearly. The Corri la Vita event in Florence raised over 900,000 euros with Ferragamo as main sponsor donating approximately 38,000 t-shirts, while a separate donation supported the Ethical Fashion Initiative's first cotton dyeing plant in Burkina Faso (operational 2026, a 1,350 square meter plant producing about 24 tons of dyed yarn per year and creating about 80 jobs, with the CABES network of 91 production companies and 2,400 artisans). During 2024 there were no human rights incidents involving affected communities. Total value distributed to communities was 928,994 euros (Opex). On the entity-specific KPI for Made in Italy, approximately 97% of supplier turnover in 2024 was generated by Italian suppliers, with Tuscan contract manufacturers accounting for 52.4% of finished product processing turnover and Campanian manufacturers 24.7%; approximately 43% of contract manufacturers have worked with the Group for over 11 years (including 55% of bag and suitcase manufacturers and 48% of accessory manufacturers). Reference: pages 236-249

Under the 2025-2027 Sustainability Plan (baseline 2024, approved by the Board of Directors on 19 December 2024), the Group set target ID 13: "Strengthen our positive social impact on local communities around the globe" with a timing of 2027, within the "Creating value for global communities" ESG building block. The target is qualitative, covers the Group's direct activities and local community involvement without geographical limitation, and aligns with the UN Sustainable Development Goals and European ESG standards. Methodology is based on analysis of local community needs and existing social initiatives using social impact metrics and qualitative evaluation tools, structured on international best practices, with progress monitored through the activities described in S3-4. The target-setting process involved stakeholders including local communities, government agencies, NGOs and business representatives through consultations and co-design. The Group identified an entity-specific Made in Italy impact (within the Brand Experience topic) on promotion of Made in Italy products and Italian craftsmanship, and uses a metric on the proportion of spending on local suppliers, with approximately 97% of supplier turnover in 2024 generated by Italian suppliers. Reference: page 245

The Group's policies for consumers and end-users aim to guarantee product quality and the information made available externally. The Responsible Communication and Marketing Policy commits to transparency, honesty, responsibility and fairness in communications, minimizing environmental impact and avoiding greenwashing, with internal verification and continuous employee training; it is approved by the Board of Directors and references regulations including the European Green Deal. The Group adopted a comprehensive set of data protection policies and procedures, data protection guidelines, information notices, a specific Data breach procedure, and a procedure to manage data subject requests under EU Regulation 2016/679 (GDPR). The Group appointed a Data Protection Officer (DPO) and the Data Controller is Salvatore Ferragamo S.p.A. and/or other Ferragamo Group companies, with special attention to accessible information for people with disabilities. No instances of non-compliance with the UN Guiding Principles on Business and Human Rights or the OECD Guidelines for Multinational Enterprises in relation to consumers and end-users were reported. Reference: pages 250-251

Salvatore Ferragamo S.p.A. uses a structured and centralized engagement approach developed by HQ Global Customer Experience and implemented locally by regional teams, interacting with customers and prospects who agreed to be contacted. The process operates on three levels: personalized 1-to-1 interactions by Preferred Client Advisors through the ClientiAmo clienteling application, 1-to-few targeted activities such as local or global events, and 1-to-many communication campaigns through digital platforms such as SFMC. These activities are managed by the Global Customer Experience division working with regional teams under senior management supervision, with effectiveness monitored through pre-defined KPIs, dashboards and the NPS/Voice of Customers project. To ensure inclusivity, the Group analyzes the perspectives of vulnerable or marginalized consumers and complies with privacy regulations, guaranteeing rights of access, rectification, cancellation, data portability and consent revocation. The methods of consent revocation are based on principles of simplicity and transparency and are not impeded by the Company. Reference: page 252

The Group adopted a structured and formalized system to manage negative material impacts on consumers and end-users, ensuring timely and transparent complaint management. Reports received through official channels, such as the global email address customercare@sf.ferragamo.com or dedicated phone numbers for each country, are immediately submitted to the Quality department for analysis and testing, with Customer Care responsible for informing the customer of progress. These channels are available in several languages and published on every product page and in the "Contact Us" section of the Ferragamo website, with effectiveness monitored through monthly analyses of complaint volume, reasons, channels and geographic distribution. Although there is currently no specific policy to protect against retaliation, the Group states its business model minimizes these risks. The retail training program and tools such as ClientiAmo and Heartbeat (a net promoter score system) support customer focus, with the Heartbeat project launched in 121 stores worldwide, the Net Promoter System/Voice of Customers active in 136 stores, Live Chat expanded to Japan and Australia, and an MTO Exotics program active in 29 stores. Reference: pages 252-255

Throughout 2024 the Group implemented actions to improve the consumer experience and prevent negative impacts, including new Client Retention and Client Acquisition formats aligned with rebranding, exclusive experiences such as the Ferragamo Places program and a gifting plan, and Ferragamo Secret Precious presentations in five cities (Milan, Paris, NYC, Mexico City, Tokyo). Customer satisfaction monitoring was enhanced through the Net Promoter System/Voice of Customers active in 136 stores with a "close the loop" process, the MTO Exotics program launched in 29 stores, completion of the ClientiAmo clienteling roadmap, and migration of the Email Campaign strategy to Salesforce. Clear KPIs recorded very positive 2024 results: OSAT of 9.6 (stable versus 2023) and NPS of 88.9 (+1.7 points versus 2023). The Group uses the NFC-based Authenticity Tag anti-counterfeiting system, made its sustainability website inclusive and available in 8 languages, and is expanding product information disclosure to anticipate the EU Digital Product Passport. There were no human rights incidents involving consumers in 2024, and consumer transparency expenses were 34,300 euros (Capex). Reference: pages 255-257

Under the 2025-2027 Sustainability Plan, the Group set target ID 14: "Enhance customer information, awareness and engagement on Ferragamo ESG actions" with a timing of 2027, within the "Creating value for global communities" ESG building block. The target is qualitative with a 2024 baseline and 2027 horizon, closely linked to the Sustainability Policy and the Responsible Communication and Marketing Policy. Intermediate objectives include strengthening clear and transparent ESG communication and initiatives to actively engage stakeholders through dedicated retail and online events. The scope covers all business activities including physical retail and e-commerce with globally consistent ESG communication. Although the target is qualitative, engagement and awareness strategies will be evaluated through specific KPIs such as the Net Promoter Score (NPS) on ESG initiatives and the level of stakeholder interaction and participation in events and communications. Reference: page 257

The Group has adopted an Anti-Corruption Policy to combat corruption and bribery, operating across jurisdictions subject to Italian law and international conventions including the OECD Convention on Combating Bribery of Foreign Public Officials, the UN Convention against Corruption, the US Foreign Corrupt Practices Act (FCPA) and the UK Bribery Act. The Policy applies to Corporate Bodies, Employees, Representatives and Collaborators, with the Legal & Compliance Function responsible for its implementation and dissemination. The Group also adopted the Group Whistleblowing Policy (drawn up under Italian Legislative Decree no. 24 of 10 March 2023 implementing EU Directive 2019/1937), and in 2024 adopted a Responsible Lobbying Policy and implemented the "Compliance Digital Pathway" training program covering the Organization, Management and Control Model under Italian Legislative Decree 231/01. Functions most exposed to corruption and bribery risk are identified in the Model and include the Group Administration, Finance and Control Department, the Group General Counsel Department, the Logistics Department, the Integrated Supply Chain Department, the Group Human Resources Department and the Marketing & Communication Department. The Group also adopted an Animal Welfare Policy requiring suppliers to comply with CITES. Reference: pages 261-263

Salvatore Ferragamo S.p.A. has a payment procedure with standard terms for each category of supplier, with any exception requiring approval by the head of the department concerned and the CFO or Financial Director. Supplier selection involves technical evaluation of raw materials and finished products, documentation on production facilities and possible verification visits. The selection process evaluates technical, qualitative, economic and financial requirements as well as necessary certifications, and new partners must accept the Supplier Code of Conduct requiring compliance with social criteria related to human rights, occupational health and safety, working hours and remuneration, plus environmental criteria. Partners must also accept the Privacy Policy and, for suppliers of animal products, sign the Animal Welfare Policy. A dedicated platform was implemented to manage the flow of information and documents with suppliers, optimizing the supply chain qualification process. Reference: pages 262-263

The Group considers prevention of corrupt practices an integral part of its social responsibility and, inspired by ISO 37001:2016 and best-practice Anti-Corruption Compliance Programs, has defined an anti-corruption management system integrated into its overall risk management and control system. Components include the Anti-Corruption Policy approved by top management, risk analysis and assessment, principles and procedures for sensitive areas, information and training for all recipients, operating procedures with roles and a disciplinary system, and periodic monitoring. The Company adopted the Organizational Model under Italian Legislative Decree 231/01, overseen by a Supervisory Body appointed by the Board of Directors, and established an Ethics Committee empowered to receive and handle reports including corruption and bribery, reporting at least once a year to the Board of Directors, CEO, Control and Risks Committee, Board of Statutory Auditors and Supervisory Body. The Compliance Digital Pathway was launched in 2024; 100% of employees in high-risk roles must receive anti-corruption training, and by the end of 2024, 87% of employees in high-risk roles will have received it. Anti-corruption training delivered was computer-based, totaling 208.77 hours for 561 high-risk function people, 66.60 hours for 175 managers, 0.00 hours for OADC and 29.52 hours for 74 other own workforce. Reference: pages 263-264

There were no incidents of corruption or bribery in 2024. Reference: page 265

The Group engages in lobbying activities through the trade and industry associations of which it is a member, monitoring legislative and regulatory developments and participating in public consultations transparently, with responsibility held by the General Counsel Department, the Transformation & Sustainability Department and the Marketing & Communication Department. The Group is a member of numerous associations including the Fashion Pact (since August 2019, and part of its Steering Committee), the Leather Working Group (since August 2021), the UN Global Compact (since December 2018), Valore D (since 2020), the Italian Chamber of Fashion CNMI Sustainability Workgroup (since 2011), Confindustria Moda, the Re.Crea Consortium, the Citeo and Re-Fashion consortia in France, and the Altagamma Foundation. The Ferragamo Group is not registered in the EU Transparency Register; however, where required, all associations to which it belongs are duly registered. In 2024 the Group's indirect contributions for membership fees amounted to 292,710 euros. In 2024 the Group also participated in the public consultation on the draft delegated decree implementing the CSRD drawn up by Italy's Department of the Treasury and State General Accounting Department. Reference: pages 265-267

Salvatore Ferragamo S.p.A. has standard payment terms by category: 10 days for leases (approximately 5% of the total), 30 days for contract manufacturing (40%) and consulting (5%), and 90 days for raw materials (30%) and other indirect purchases excluding consulting (20%). The average time the Company takes to pay an invoice from the start of the contractual or legal payment period is 71 days, and the percentage of payments meeting standard terms is 95%. For SMEs, the average payment time is the same. The calculation is based on the payments of Salvatore Ferragamo S.p.A. for 2024 as a whole. Reference: page 267