LU VE S p A : ESG Report

LEADERSHIP WITH PASSION

2021 Sustainability Report of LU-VE Group

Consolidated non-financial statement pursuant to Italian Legislative Decree 254/2016

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LEADERSHIP WITH PASSION

2021 was LU-VE Group's thirty-fifth year in business.

It was a very good year, and one in which we achieved our highest turnover ever: €492 million, +22.6% compared to 2020 and more than doubling net profit. The 2021 turnover was 50 times that of our first year of activity.

It is the result of constant growth, organically and through acquisitions, based on the professional values of an international working community that unites cultures in a blending process, focusing on the innovation of products and business processes.

Since our foundation, we have been pioneers in upholding the essential principles of environmental protection: lower energy consumption, the reduced use of refrigerant fluid, low noise levels, high levels of reliability over time and reduced use of space. These issues are increasingly topical today.

In 2021, we received numerous awards related to ESG issues such as environment, sustainability and workplace quality.

We are honoured by this and see it as a stimulus for further improvement.

Today we are an international group with our heart and mind firmly rooted in Italy, yet we have replicated our original model wherever we manufacture and operate, placing the work of the men and women who have made LU-VE Group's history at the very centre of our development.

Thank you to everyone who made all this possible.

Iginio Liberali

Presidente LU-VE Group

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Contents

1.	ABOUT LU-VE GROUP	8
1.1	Make One (Sustainable) Company	12
1.1.1	The applications, solutions and social impacts	14
1.2	Sustainability	20
1.2.1	The Sustainability Governance Model	20
1.2.2	Stakeholder dialogue and engagement	27
1.2.3	Sustainability strategy and materiality	28
1.2.4	The Sustainable Development Goals	31
1.3	Generating value in the long term	32
1.3.1	Taxonomy of environmentally sustainable activities	34
1.3.2	Sustainable finance	37
1.3.3	Tax strategy	40
1.3.4	Environmental and social certifications	42
1.3.5	Sustainability awards and recognitions	44

2.	ADVANCED WORLD | Ideas and passion for a cooler world	50
2.1	Driving change	52
2.1.1	Sustainable refrigerant fluids	54
2.1.2	Products with efficient motors	60
2.2	Cultivating a passion for innovation	64
2.2.1	2021 Solutions	64
2.2.2	2021 Applications	68
2.3	Partnerships and customer orientation	74
2.3.1	EASYGO project	75
2.3.2	Listening to customers	76
2.3.3	Quality control	76
2.3.4	Eurovent Certification	78

3.	BETTER WORLD | Live and work in better places	82
3.1	Improving workplaces	84
3.1.1	The LU-VE Group Family	86
3.1.2	Promoting well-being	92
3.1.3	Widespread communication	94
3.2	Being a point of reference for talents and promoting growth	95
3.2.1	Skills enhancement	97
3.2.2	Training	97
3.3	Ensuring workplace safety	99
3.3.1	Safety education	103
4.	BALANCED WORLD | More opportunities for all	106
4.1	Supporting employees and their families	108
4.1.1	Attention to people	109
4.2	Initiatives to support communities	112
4.2.1	The youth sport	112
4.2.2	Local communities	118
5.	CONSCIOUS WORLD | Stewardship for a better future	126
5.1	Raising awareness of environmental challenges and reducing impacts	128
5.1.1	Energy consumption and emissions	129
5.1.2	Water resources	134
5.1.3	Waste management	136
5.2	Promoting a responsible supply chain	138
5.2.1	Ethics and quality in the supply chain	138
5.2.2	Material procurement	140
6.	METHODOLOGICAL NOTE	144
7.	GRI CONTENT INDEX	158
8.	REPORT OF THE AUDITING FIRM	165

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