Interpump S p A : 2023-2025 ESG Journey approval

INTERPUMP APPROVES "ESG JOURNEY 2023-2025"

Chairman Fulvio Montipò:

"Concrete action has always been one of the cornerstones that inspires

Group strategy definition process and its execution.

This founding value is also fully reflected in the 2023-2025 ESG Journey

which includes both the activities already in progress and new initiatives that will allow the Group to gain further efficiencies.

Clear activities with precise timelines and resources related to the management goals

that make the ESG Journey a coherent expression of Group policy."

20 actions planned in the "ESG Journey"

12 to be implemented between 2023 and 2024, 7 by 2025 and 1 by 2027

Around 65% of Group turnover1 covered by "ESG Journey" perimeter

Around 50% of Group's production sites and around 70% of its employees

Resources needed to action implementation during "ESG Journey" horizon quantified

CAPEX: around € 10m

OpEX: around € 3m of incremental costs

Correlation between ESG Journey and top management remuneration policy

Correlation already in place with 2022-2024 Stock Option Plan

Alignment with Part I of the Remuneration Policy

Sant'Ilario d'Enza (RE), 5 October 2022 - The Board of Directors of Interpump Group S.p.A., who met today under the chairmanship of Fulvio Montipò, approved Interpump "ESG 2023-2025 Journey".

20 actions were foreseen - 7 under the Environmental scope, 7 under the Social scope and 6 under the Governance scope - and the execution time horizon is the three-year period 2023-2025, with one action to be implemented within by 2027.

1 2021 turnover of € 1.551m (please refer to Non-financial statements as of 31 December 2021 for details)

Going into details, actions envisaged for 2023-2024 aim to integrate in Group strategy the ESG fundamental principles and therefore to create the value and organisational framework, while the following ones seek to support the Group in achieving the 2030 and 2050 decarbonisation targets. The entire process will be executed also by focusing on the global sharing of the best practices developed by the various Group entities for specific topics.

Around 10 million Euro of CAPEX - around 40% of those already included in 2022 budget - and around 3 million Euro of incremental OpEx are envisaged for the extension of the ISO 45001 management system certification and non-compulsory training.

The correlation between the achievement of the ESG Journey goals and the top management Remuneration Policy will be strengthened: after the introduction of ESG parameters in the 2022- 2024 Stock Option Plan2 approved last April, the alignment of the variable part of the annual compensation in Part I of the Remuneration Policy will follow in the 2023 annual shareholding meeting.

The different actions related to the different scopes are indicated below.

The Environmental actions represent the starting point of the Group's Journey to achieving the 2030 and 2050 decarbonisation targets

"ENVIRONMENTAL"

Action

KPI

Timing

Target

Reference

SDG

E.1

"Carbon neutrality"

_

2023

Strategy definition

strategy definition

2 Please refer to the Information Document about the Incentive Plan reserved for certain employees, directors and/or collaborators of the Interpump Group for the assignment of up to 2,250,000 options, known as the "2022-2024 Interpump Incentive Plan" approved by the shareholders' meeting on 29 April 2022

"ENVIRONMENTAL"

Action

KPI

Timing

Target

Reference

SDG

-30%

E.2

Group "Carbon

tCO2eq/€3

2025

From 0.0404 in

intensity" reduction

2021

to 0.028 in 2025

Increase the

percentage of

% of Group

From 3% to 25%

renewable electricity

total energy

E.3

2025

of energy

used in relation to

consumption

consumption

Group total energy

(GJ)

needs

Pilot project in the

Pilot project

field of circular

conclusion

economy

2023

E.4-5

Applicability analysis

_

of circular economy

2025

project extension to

Extension

further legal entities

definition

Implementation of a

water withdrawal and

Monitoring system

E.6

discharge continuous

_

2025

implementation

monitoring system

in Group's plants

Definition of Group

Group Guideline

E.7

guidelines for eco-

_

2024

definition

design of products

1. tCO2eq/Total consolidate revenues
2. 2021 baseline: tCO2eq equal to 62,181 and consolidated turnover of € 1,551m (please refer to Non-financial statements as of 31 December 2021 for details)

The Social actions aim on one hand side to further and continuously improve occupational health

• safety conditions and people development and on the other to introduce ESG parameters in the suppliers' evaluation process.

"SOCIAL"

Action

KPI

Timing

Target

Reference

SDG

Maintenance of 2022-24

average employee

Average 2019-21:

S.1

accident incidence

Injury rate5

2024

2,26

index below last 3 years

average

ISO 45001 extension to

% Group

S.2

the Group's production

2027

From 22% to 45%

turnover

companies

Increase of average per

Average non-

S.3

capita hours of non-

compulsory

2025

Almost 35%

compulsory training at

training hours x

increase

Group level

employee

Development of a

S.4

Group global mobility

_

2025

Program launch

program

1. (Total n° of employees injuries above 1 day / Total n° of hours worked) x 200,000
2. Please refer to Non-financial statements as of 31 December 2019, 2020 and 2021 for details

"SOCIAL"

Action

KPI

Timing

Target

Reference

SDG

Draft of supplier

Pilot project

evaluation model

2023

conclusion

according to

environmental and

S.5-6

social criteria

_

(pilot project)

Extension

to 100% Italian

Model extension

manufacturing

at Group level

2024

entities

Working

environment

S.7

assessment to

_

2025

Pilot project

promote diversity&

conclusion

inclusion principle

(pilot project)