MARR S p A : Sustainability Report 2022 - Consolidated Non-Financial Declaration prepared pursuant to of Legislative Decree 254/2016

SUSTAINABILITY

report

2022

years

Consolidated Non-Financial Declaration in accordance with Legislative Decree 254/2016

SUSTAINABILITY

REPORT

2022

Consolidated Non-Financial Declaration

in accordance with Legislative Decree 254/2016

INDEX

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		SUSTAINABILITY REPORT MARR 2022
Methodological note	6
Highlights	8
Sustainable supply chain	10
Index of material topics	12
MARR IDENTITY	14
1.1	The business model	15
1.2	Roots and history of the Group	18
1.3	Brands and products	21
1.4	The logistic-distribution network and structure of the Group	24
1.5	Governance	27
1.6	Financial performance	36
SUSTAINABLE DEVELOPMENT PATHS AND GOALS	40
2.1	Identification of the Stakeholders	41
2.2	Analysis of impacts and material topics	42

2.3 Material topics, sustainability commitments, initiatives and projects 46

CUSTOMER CLOSENESS	57
PEOPLE IN MARR	65
4.1	The Human Resource Management Policy	66
4.2	Skills and wellbeing	67
4.3	Protection of diversity and equal opportunities	76
4.4	Safety and health at work	83
QUALITY IN MARR	87
5.1	Product quality and safety	88
5.2	Product labelling and consumer information	94
5.3	MARR certifications	95
MARR FOR THE ENVIRONMENT	96
6.1	Management of packaging and Waste	98
6.2	Impact and increase the efficiency of logistics	104
6.3	Consumption and emissions of electricity and combustibles	108
6.4	Water consumption	112
SUPPLY CHAIN	116
7.1	Localisation of the suppliers	117
7.2	Supplier selection and evaluation	118
7.3	Ethical procurement and respect of human rights	121
7.4	Upgrading the value of "green" and local products	122
7.5	Sustainable fishing and fish farmin	128
7.6	Animal welfare	130

8	INTEGRATION AND ENGAGEMENT WITH
THE OTHER STAKEHOLDERS	132
	8.1	Financial community	134
	8.2	Local communities and donations	135
	8.3	Authorities and control bodies	136
	8.4	Category associations	136
	Table summarising how MARR interacts and engages with each
	of the stakeholders	137
	CONTENT INDEX	139
	Table linking the priority topics and the topics of L. Decree 254/2016	139
	Table linking the GRI standards - L. Decree 254/2016 and SDGs	140
	Independent auditor's report	146

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METHODOLOGICAL NOTE

SUSTAINABILITY REPORT MARR 2022

Information regarding EU Taxonomy

EU Regulation 2020/852 has introduced the taxonomy of eco-compatible economic activities into the European

with all of the eco-sustainability requirements (Substantial Contribution, Do No Significant Harm (DNSH), minimum

The Sustainability Report of the MARR Group (constituted by MARR S.p.A. and its subsidiaries, hereinafter also "MARR" or "the Group") assumes the same valence as the Non- Financial Declaration ("NFD") prepared in compliance with Legislative Decree 254/2016, and is published separately from the Directors' report. In fulfilment of art. 3 and art. 4 of Legislative Decree 254/2016, the document is intended to report on the measure required to ensure the understanding of the business activities carried out, the performance levels, the results achieved and the impact generated

by these activities as regards environmental, social and staff-related topics, the fight against active and passive corruption and the respect of human rights.

In the Sustainability Report (hereinafter also "Report"), MARR includes the information concerning the aspects deemed to be priority and relevant ("material") which reflect the impacts of the workforce from an economic, environmental and social viewpoint, and which are capable of significantly influencing the evaluations, conduct and decisions of the Stakeholders.

The objectives have been outlined by the Board of Directors and the relevant aspects for the Group defined according to the updating of a process of materiality analysis

which involved a comparison of the material topics with the sector best practices, also taking the expectations of the Stakeholders into consideration, as described in paragraph 2.2 Analysis of impacts and material topics. This Sustainability Report has been drawn up in compliance with the "Global Reporting Initiative Sustainability Reporting Standards" issued in 2016 by the Global Reporting Initiative (GRI), and updated in late 2021, according to the "GRI- Referenced" option.

The GRI indicators reported in the Report are those considered to be most representative of the sustainability topics identified as relevant by MARR on the basis of the materiality analysis conducted.

The reporting period is from 1 January 2022 to 31 December 2022. The scope of the corporate, environmental and economic-financial information includes all of the companies consolidated with the integral method by the parent company MARR S.p.A.. Therefore, the scope of consolidation includes, in addition to the parent company MARR, the subsidiaries As.Ca S.p.A., New Catering S.r.l., Antonio Verrini S.r.l. and Frigor Carni S.r.l.. It must be pointed out that, compared to last year, the scope of consolidation has been expanded by way of the acquisition finalised

in April 2022 by the parent company MARR S.p.A. of the totality of the holdings of the company Frigor Carni S.r.l., based in Calabria and operating in the food distribution sector. Also compared to last year the company Chef Unipersonale S.r.l. was merged by incorporation into the

parent company MARR S.p.A. on 30 December 2022. MARR Foodservice Iberica S.A., a non-operating company, and Jolanda de Colò S.p.A., an associate company, are thus excluded from the scope of consolidation.

Considering the timing of the acquisitions of the new subsidiaries, it must be noted that the figures as at 31 December 2022 include those regarding 12 months of

activity by Antonio Verrini S.r.l. and Chef Unipersonale S.r.l.

(the figures for the latter are included in those of	MARR
S.p.A. following the merger), while they only impacted 9
months of last year. The figures as at 31 December	2022 also

include the effects of 9 months of operations by the newly acquired Firgor Carni S.r.l., not included in 2021.

The risks and opportunities with regard to MARR's activities are the same as those reported for the entire Group.

Any perimeter restrictions to the data reported are specified in the individual chapters and do not restrict the understanding of the Group activities and their impact.

In order to properly represent the performance of the Group, the use of estimates has been restricted as much as possible. When estimates have been made, they are based on the best available methodologies and adequately noted.

The 2022 Sustainability Report has been prepared involving all of the responsible management departments and was approved by the Board of Directors on 14 March 2023, together with the draft annual financial statements and the consolidated financial statements.

The document has been audited by the designated auditing firm PricewaterhouseCoopers S.p.A., pursuant to Legislative Decree 254/2016 on the basis of the standards and instructions in the ISAE3000 (International Standard on Assurance Engagements 3000 - Revised) of the International Auditing and Assurance Standard Board (IAASB). PricewaterhouseCoopers S.p.A. is also the company responsible for the legal auditing of the MARR Group consolidated financial statements.

The reporting frequency is annual (the 2020 and 2021 Sustainability Reports can be viewed and downloaded from the web page: https://www.marr.it/sustainability/report-and-esg).

It must be pointed out that the masculine plural form has been used by convention, without implying any form of discrimination.

For more information on this Report, the following e-mail address can be contacted: [e-mail].

regulatory system, establishing that any business that it is bound to produce a non-financial declaration must include therein information on how and to what extent the business activities are associated to economic activities and can be considered as eco-sustainable in accordance with the Regulation itself.

Specifically, paragraph 2 of art. 8 of EU Regulation 2020/852 establishes that businesses must disclose:

6 the portion of the returns from products or services associated to economic activities qualified as eco- sustainable (in line with the Taxonomy system);

6 the portion of expenditure in capital account (Capex) and the portion of operating expenses (Opex) regarding the assets or processes associated with economic

activities qualified as eco-sustainable (in line with the Taxonomy system).

The Regulation also provides for a distinction between activities considered as "eligible" to the taxonomy and those "aligned" with it.

An economic activity is defined as "admissible to the Taxonomy" when it is merely included in the list of eco- sustainable economic activities contained in the delegated acts of the Taxonomy.

An economic activity is defined as "aligned with the Taxonomy" when it is not only included in the list of eco-sustainable activities but also respects all of the requirements of eco-sustainability and the criteria of a technical nature established in the Taxonomy.

The lawmakers envisaged an initial disclosure regime for the 2021 business year limited to verifying the activities "admissible to the Taxonomy", and which since 1 January 2023 also requires the verification of the activities "aligned with the Taxonomy" with regard to the first two environmental objectives (those of mitigation of and adaptation to climate change, scope of the Climate Delegated Act).

The verification of the "admissible" activities requires the ascertainment of the presence or not of the type of activity in the list of activities supplied by the Taxonomy. To this end, the technical criteria where possible follow the NACE (Nomenclature des Activités Économiques) classification of economic activities, the general classification system used to order and uniform the definitions of economic and industrial activities in the Member States of the European Union. In this regard, a description of the single activities admissible is provided for each economic sector, with an indication of the relative NACE codes.

The ascertainment of alignment requires a detailed verification of the compliance of the economic activity

safeguarding guarantees and technical criteria envisaged by the delegated acts).

Starting in the business year closed on 31 December 2021, MARR conducted an initial trial of adjustment to the requirements of the Taxonomy, verifying the presence of "admissible" activities; it emerged that on the basis of the analysis conducted considering the NACE codes of the companies in the MARR Group, the activities of the Group were not part of those eligible to the Taxonomy.

In order to fulfil the disclosure obligations required as of 1 January 2023, MARR has once again verified the presence of activities "admissible" to the Taxonomy during the 2022 business year and for those identified as admissible, has verified the alignment on the basis of the technical criteria with regard to the first two environmental objectives of mitigation of and adaptation to climate change. As regards the returns, it also emerged for the 2022 business year that the products and services of the MARR Group are not included among the economic activities currently included in the Taxonomy and there are therefore no "admissible" revenues. As regards the expenditure in capital account and the operating expenses for 2022, respect of the technical criteria was verified in relation to the activities in point "7. Construction and real estate" of the Delegated Acts, which refer to the construction and refurbishment of buildings, the installation of energy saving devices and measurement tools and devices, the regulation and control of the energy performance of buildings and technologies for renewable energy and no investments or expenses satisfying the alignment criteria emerged.

The analysis will be conducted in future business years to monitor investments and expenses that do satisfy the alignment requirements.

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