LU VE S p A : ESG Report

To Iginio Liberali

THE GARDENER OF DREAMS

Iginio Liberali, chairman and founder of the LU-VE Group died in December 2022.

The "Gardener of dreams", as he liked to be known, has dreamt up many things and managed to achieve most of them.

He has left us with the values he always followed in his personal and professional life: the humility to continue learning to keep growing the passion for life and for his work way of thinking, always positive and always looking to the future.

"Our best days have yet to be lived"

Nazim Hikmet

LEADERSHIP WITH PASSION

It is with considerable amount of emotion that for the first time we find ourselves drafting this letter with which we are sharing

the LU-VE Group's strategy for sustainable development.

Up to last year, the task belonged to our founder and chairman Iginio Liberali who unfortunately left us at the end of 2022. He would do so with great humility, intelligence and the capacity to look to the future that were such a part of him: his most precious bequest.

Iginio Liberali was a man of exceptional professional and human qualities. He built the foundations for the success and growth of the LU-VE Group, which since 1986 has multiplied its turnover sixty times over and increased the Group's collaborators from under 200 to the over 4,000 that are currently working for us.

This document is dedicated to Iginio Liberali.

In 2022, the LU-VE Group achieved a series of exceptional results.

We posted the highest turnover ever, exceeding € 618 million (+25.7% compared to 2021).

Last September, we were admitted onto the Euronext STAR segment of the Milan Stock Exchange, culminating a process that began with the listing on the AIM market (2015) and continued with the transition to the main MTA market (2017).

During what are hard times, featuring high inflation and the rise in the cost of living, we have stood beside our collabora-tors, by putting up € 3 million. We have wanted to give them and their families true support, a sign acknowledging the women and men without whom it would not have been possible to become what we are today.

The year 2022 was also a year that introduced a range of changes in terms of governance and sustainability strategy.

To address the new challenges, we have set up the Sustainability Steering Committee, that will see the regular partici-pation of the CEO, COO, CFO, Investor Relations and Sustainability Officer. This is where the strategic lines will be plotted and the progress of our performance will be evaluated, with the involvement of other directors and Group managers with expertise on the specific issues covered by sustainability.

For the first time the LU-VE group has prepared the 2023-2025 Sustainability Plan, which was approved by the Board of Directors in February 2023.In line with our strategic priorities to contribute to sustainable development, we have outlined a

three-year plan of action based on four macro-objectives: climate neutrality, positive impact products, high engage-ment of collaborators and the integration of sustainability in our industrial plan.

Climate changes are generating and will continue to generate, at a global level, increasingly negative effects on the economy, the environment and the lives of every one of us (increased poverty, migrations, water and food scarcity, reduction of biodi-versity).What's more, the current context sees two trends coming to the fore: the increasing demand for air conditioning and refrigeration and the concomitant need to reduce energy consumption and climate-altering emissions.

The LU -VE Group has responded by promoting advanced technological solutions with reduced environmental impact. We can contribute to reducing (direct and indirect) greenhouse gases, by finding ways to mitigate our environmental impacts and build increasingly effective products that are compatible with the environment in terms of energy consumption, optimised performance and the use of natural refrigeration fluids.

Ever since its foundation the LU-VE Group has paid attention to ESG issues that have now taken centre stage. For some time now we have been preparing ourselves to respond to the new challenges posed by sustainability in general, by climate change, by our desire to be close to our stakeholders and shareholders and the need to equip ourselves with new systems of governance, while also involving our customers and suppliers in this process. We know that it is essential to find new ways to promote sustainability at a global level: this is our challenge as market leaders.

• We are proud of our path towards an "evolved, improved, balanced and self-aware world".

• We are thankful to all the women and men of the LU-VE Group who have contributed to our growth and development.

• We are convinced that "our best days are still ahead of us"