Davide Campari Milano N : Sustainability report 2020

SUSTAINABILITY

REPORT 2020

TOASTING LIFE TOGETHER

SUSTAINABILITY

REPORT 2020

TOASTING LIFE TOGETHER

CONTENTS	4
	CHAIRMAN'S LETTER

NOTE ON METHODOLOGY 6

CAMPARI GROUP'S IDENTITY

12

About us	12
Our world	13
The new Campari Group website	16
Our history: a history of culture	18
Campari Group: a history
of entrepreneurship	26
Campari Group worldwide	28
Growth strategy	30
Our brands	34
Our Master Blenders	44
Risk management	52
The governance model	46
The Foundations	62

SUSTAINABILITY FOR THE GROUP 68

GLOBAL SUSTAINABILITY STRATEGY

68

Stronger Together-Campari Group and the Covid-19 pandemic

Sustainability policies and governance

Creating value for stakeholders

Our stakeholders

The value chain of our products

Materiality analysis

OUR PEOPLE 90

Our people: a global community of Camparistas

Campari Group and Camparistas: #StrongerTogether

Ever more continuous dialogue

Other tools for dialogue and engagement-Channels and initiatives

Diversity, Equity and Inclusion in the workplace

Learning and professional development in the workplace

Remuneration system

Camparistas' involvement

with the environment, well-being and social activities

Industrial relations

	RESPONSIBLE		COMMUNITY
	PRACTICES		INVOLVEMENT
	126		154
	Responsible sourcing	126	Campari Gallery	154
72	Quality and food safety of brands	129	Cinzano Archive	156
78	Global Strategy	130 Campari and the cinema	157
on Responsible Drinking
			Negroni Week	158
80	Responsible communications	131
		AdAstra Project	159
82	Responsible serving	132
		Camparista Dream Coach	159
84	Responsible consumption:	134
communications and promotional		Campari Barman Competition	160
85	initiatives
		Wild Turkey-With Thanks US	160
	Marketing and product innovation	136
			Cynar-Graphic artists	160
			contest Argentina
	THE ENVIRONMENT
90	142		APPENDIX
	Management of resources	142	162

92 and environmental impact

	Global supply chain medium-long	GRI Content Index	162
	142
92	term environmental targets	Independent auditor's report	175
95	Energy efficiency	142
and decarbonization
	Emissions	144
95	Water management	144
104	Waste management	146
	Logistics and sustainable distribution	148
109
114
115

Health and safety in the workplace

118

CHAIRMAN'S LETTER

BUILDING

MORE VALUE TOGETHER

In 2020 we celebrated the first 160 years of our Group: a long and successful story, in which there has been no shortage of important tests, not least the crisis caused by the spread of Covid-19. The global pandemic which hit us has certainly, albeit hopefully temporarily, changed our lifestyles and the 'new normality' which has taken hold has deeply changed our habits and opportunities for socialising. In the changed social and work context, our people, the Camparistas or Campari lovers around the world, have made the difference by creating virtual opportunities to share and meet, always continuing to actively support the business across all markets, with a sense of commitment, professionality and great passion. From the start of the pandemic, our Group's priority has been, and will continue to be, that of protecting the health of our Camparistas by guaranteeing the continuity of the business. In this regard, I particularly wish wholeheartedly thank all the Camparistas working at our production facilities who, right from the first months of the pandemic, even at the height of healthcare, rather than economic, uncertainty, have always worked with great commitment and dedication to guarantee operational continuity, regular procurement and adequate stocks, ensuring continuity in the sale of our products worldwide.

Acknowledging that in such extraordinary times business as usual would no longer be an adequate response, we have maximised the opportunities offered by digitalisation, making smart working effective and practical. In addition, we have also introduced new protocols and practices to guarantee that all our plants and distilleries can continue to operate in complete safety, and we have organised a gradual return to our workplaces in compliance with the highest standards of prevention and safety.

As a large team which tackles even the toughest moments united and resilient, our sense of belonging and spirit of togetherness have been further reinforced also thanks to the promotion of activities and initiatives aimed not only at our employees, but also at the various local communities where we are present. The valorisation of the diversity and contribution which each Camparista can bring to the business, has been matched in the global 'Diversity, Equity&Inclusion' project, which will see the Group strengthen its commitment by undertaking global and local initiatives and activities aimed at creating an even more inclusive environment.

We also wanted to express our closeness to and support for local communities by offering them our solidarity, through donations to hospitals, the production and distribution of disinfectants, and providing emergency funds or support funds for our friends in the hospitality sector.

When I think back to everything we have done over these months, during such an acute emergency, I can only look to the future that awaits us with pride and confidence. We will certainly face important commercial challenges, but, together, with the dedication, enthusiasm, creativity and talent which have always been our hallmarks, we will win all these battles because, as Albert Einstein taught: 'It's in crisis that inventiveness is born, as well as discoveries and big strategies. It's in the crisis where we can show the very best in us'.

LUCA GARAVOGLIA

NOTE ON METHODOLOGY

This Sustainability Report represents the complete Campari Group's disclosure on non-financial information with the aim to illustrate to our stakeholders Campari Group's sustainability strategy and main initiatives in 2020. This disclosure contains non-financial information about en- vironmental, social and employment matters, as well as respect for human rights, anti-corruption and bribery is- sues, to the extent necessary to ensure understanding of the Group's business, performance, results and impact. The Group's strategies, policies, main impacts, risks and the related management approach for each of these issues are also described based on the principle of mate- riality. A non-financial statement is also included in the Annual Report, which is an extract from this document that highlights the most relevant information of the year and the Group's more general approach to sustainability.

The Sustainability report is drawn up every financial year and presented to the Board of Directors of Davide Campari-Milano N.V. on February 18th, 2020, which is also responsible for approving the Non-Financial Declaration published in the Campari Group consolidated financial statements at 31 December 2020, addressing the requirements of the Dutch Civil Code, and of the Dutch Decree on Non-Financial Information (Besluit bekendma- king niet-financiële informatie), which is a transposition of Directive 2014/95/EU 'Disclosure of non-financial and diversity information' into Dutch law.

The Dutch Statutory Auditor verifies the disclosure of this document according to legal requirements, while EY Italy verifies, through a limited assurance engagement, the Sustainability Report's compliance with the GRI Standards, the global standards for sustainability reporting. The Sustainability Report is submitted for limited assurance, in accordance with International Standard on Assurance Engagements (ISAE) 3000 Revised, by the independent auditing firm EY S.p.A..

The materiality analysis established in 2017, on the basis of a comprehensive benchmarking comparison with competitors in the sector and of the results of a sustainability questionnaire distributed to the Group's entire manage- ment, has been further refined. In 2018, bartenders were included among the categories of stakeholders that are most relevant to the Group. In 2019, adjustments were made in the wake of a focus group conducted under the aegis of the Campari Group Sustainability Committee.

And lastly in 2020, the priorities were reconsidered in a year when the entire world population was affected by the Covid-19 pandemic, resulting in a strong impact also on the global economy.

Campari Group's Sustainability report and Non-Financial Disclosure were prepared in accordance with the GRI Sustainability Reporting Standards, the sustainability reporting framework set by the Global Reporting Initiative ('GRI'), establishing the most advanced standard for sustainability reporting most widely used worldwide. The document complies with the In Accordance-core option of the GRI, ensuring that at least one indicator for each material issue is disclosed(1). As in previous years, in addition to the key performance indicators established in the GRI Sustainability Reporting Standards and the sustainability aspects covered by the statutory reporting requirements, Campari Group also reports certain additional qualitative and quantitative indicators that are particularly relevant for a multinational company operating in the spirits sector (e.g.: responsible marketing and serving, and communication practices), in accordance with the materiality principle.

With regard to the financial data, the scope of the reporting corresponds to that of Campari Group's consolidated financial statements. With regard to the non-financial infor- mation, the scope of the reporting encompasses the data of all Campari Group companies consolidated on a line-by-line basis for the period from 1 January 2020 to 31 December 2020 (2020 fiscal year); it thus excludes the information related to two companies: (i) Licorera Ancho Reyes y CIA S.A.P.I. de C.V., and (ii) Casa Montelobos S.A.P.I. de C.V.. This is because the scope of the acquisition, which occurred at the end of 2019, includes the brands, the company's intellectual property and related inventories, not the production and bottling facilities that are leased to third parties, whilst agave, the main raw material to produce mezcal, is sourced through third party agreements with major local growers to secure constant supply. Champagne Lallier S.a.r.l. is also excluded, whose signing was announced on 5 May 2020 and whose production, close to 700,000 bottles in 2019, is not seen as impactful and therefore material for the purposes of this report.

Furthermore, given that it is a distribution company and does not therefore have production facilities, environmental data relating to the company Campari France Distribution S.A.S., formerly Baron Philippe de Rothschild

(1) For more information, refer to the GRI Content Index of this document.

France Distribution S.A.S., are also excluded from the reporting perimeter. Similarly, Tannico S.p.A., the leading e-commerce platform for wines and premium spirits in Italy, in which Campari Group today holds a 49% interest, is not included in the scope of consolidation.

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