Key achievements in 2023 in the three ESG areas reported in the document include:

• A 50% reduction in CO2 emissions related to electricity consumption

• Attainment of the Certification for gender equality by the Group’s Parent Company (UNI/PdR 125:2022)

• Provision of over 260,000 hours of training through the IT & Management Academy for the upskilling and reskilling of employees.

Engineering Group, leader in digital transformation for companies and public administrations, has published its 2023 Sustainability Report, reviewed for the third consecutive year by a third party – Deloitte – and prepared in accordance with the GRI (Global Reporting Initiative), the most widely used international standard.

Following the approval of the Sustainability Plan for 2024-2026, the Group reaffirms the centrality of sustainability strategies as part of the transformative process undertaken by the Group under the leadership of Maximo Ibarra.

The preparation of this edition of the Sustainability Report reflects the work Engineering undertook in 2023 to align its emission calculation methodology with the requirements of the GHG Protocol and the Science Based Targets initiative (SBTi), to establish the correct baseline for its 2030 reduction targets. The analysis and reporting covered, for the first time, the entire global scope of the company, including its more than 80 locations in 21 countries. This acceleration was also made possible by a new operational methodology that consolidated sustainability data into a dedicated platform, thus streamlining and speeding up the process of collecting 25 quantitative KPIs from over 100 organizational units.

The Sustainability Report also includes some Best Practices where Engineering is committed to supporting its partners in achieving their ESG goals, leveraging its expertise in cutting-edge technologies such as Artificial Intelligence, its deep business knowledge across all the markets in which it operates, and its more than 30 proprietary solutions. The entire reporting process took 8 months of work from the Sustainability team and from colleagues of various business areas and has facilitated the development of sustainability expertise throughout the Group.

Maximo Ibarra, CEO of Engineering, explains: "In 2023, marked by ongoing macroeconomic uncertainty and significant geopolitical instability, two major issues have dominated the political agendas worldwide: the effects of climate change and the revolutionary impact of Artificial Intelligence. We are in a historic phase where technology drives us to find readily available solutions capable of shaping a greener, more sustainable, and inclusive future.

In this context, Engineering is undertaking a profound transformative process with the ambition to become a change leader for itself and its partners. This is what we present in our new Sustainability Report, which we publish a few months after defining an ESG Plan that, for the first time, sets measurable goals and targets for all 21 countries where the Group operates with over 80 locations. By placing sustainability policies at the center of our business strategies, we elevate technology as a tool capable, for example, of optimizing the use of natural resources, promoting the production of renewable energy, and creating more inclusive social ecosystems, thereby providing real benefits to all individuals and supporting a model of progress that combines technological innovation, environmental protection, and social well-being.”

Among the key results in the Sustainability Report:

SOCIAL AND GOVERNANCE

Well-being and professional growth are at the heart of Engineering's development strategy, which is constantly committed to ensuring equal opportunities for all its people.

In the areas of social and governance, the Group aims to reach 35% women in the company by the end of 2025 (Italy Group perimeter): by the end of 2023 the intermediate goal of 32.5%* female presence was achieved. The Group also aims to eliminate, by 2026, the gender pay gap, currently at 1.8%. Another goal is to increase the percentage of women in leadership roles to 22%; in 2023, this figure was over 18%, an increase of one percentage point compared to 2022.

New HR processes and initiatives have also been designed with a concrete focus on promoting Diversity, Equity & Inclusion policies, and in this context, the Group obtained Gender Equality Certification (UNI/PdR 125:2022) in 2023.

Training is also central. In 2023, the IT & Management Academy provided over 260,000 hours of training, intensifying the upskilling and reskilling of professionals and young talents joining the company, enhancing and completing their technological and managerial skills.

In June 2023, the "Risk Control and Sustainability" (CCRS) internal board committee was established. It is responsible for reviewing the annual reporting prepared by Engineering, providing opinions on the annual and multi-year objectives defined also through the examination of the sustainability plan, and monitoring national and international initiatives and best practices in the field of sustainability.

ENVIRONMENTAL

In 2023, direct Scope 1 emissions decreased by 7%. This result was achieved also thanks to the efficiency improvements at the Pont-Saint-Martin Data Center, which, by recovering residual heat from the data center’s cooling system and using it for office heating, has eliminated the use of methane as a heating source.

Scope 2 emissions i.e. indirect emissions related to electricity consumption saw a significant improvement, with a reduction of approximately 50% (market-based methodology).

This result was also achieved thanks to a further 5% reduction in electricity consumption at the Pont-Saint-Martin Data Center, as verified by an independent third party, which monitors the Data Center's compliance with this target on an annual average basis over the four-year period from 2021 to 2024.

In recognition of its commitment to sustainability, since 2022 the Group has started to link its financial strategy to ESG performance also through cutting-edge tools structured with major financial institutions. The sustainability targets achieved with the Data Center thus enable Engineering to access these tools under more favorable economic conditions.

SUSTAINABLE PROCUREMENT

The Group has initiated a sustainable procurement path, thanks to a partnership with Open-es, to monitor the ESG performance of suppliers, with the goal of mapping 25% of the Top Providers in 2024 and 50% in 2025.

By joining the Open-es Community - which already includes over 1,600 companies from almost 40 countries worldwide - Engineering reaffirms its commitment to contributing to the growth and development of an industrial ecosystem based on principles of environmental, social, and economic sustainability. This supports an energy transition and economic growth that is attentive to the needs of the planet, the citizens, and the communities.

In this context, the Group has already identified a new PC supplier, leading to a reduction of approximately 40% in the volume of packaging used, resulting in decreased waste production and storage space requirements.

* The data excludes the BE Group, Atlantic Technologies, Industries Excellence, Parma Valore Comune, and Extra RED.