Italian Sea S p A : 2022 Consolidated Non-Financial Statement

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2022 CONSOLIDATEDF NON-FINANCIAL STATEMENT

PURSUANT TO ITALIAN LEGISLATIVE DECREE NO.S254 OF 2016

CONTENTS

			Letter from the Chief Executive Officer	02
1.	The Italian Sea Group	06
			The Italian Sea Group	08
			History	10
			Significant Events of 2022	15
			Brands	14
			Group Structure	20
			Mission and Values	20
			Strategy and Business Model	22
			The Pillars of the Strategy	24
			Product Research and Innovation	26
2.	Sustainability of Tisg	28
			Context Analysis	30
			Materiality Analysis	32
			Priority Matrix	36
			The Pillars of The Italian Sea Group's ESG Strategy	37
			Results Achieved	38
			Sustainability Programme	39
			Stakeholders of Tisg	40
			Economic Value Produced and Distributed to stakeholders	42
			Taxonomy	44
			Annexes	48
3.	Governance, Ethics and Integrity	45
			Corporate Governance	54
			Governance and Control Bodies	55
			Instruments of Governance and Control	63
			Anti-corruption	67
			Policy on the Protection of Human Rights	67
			Policy on the Protection of Diversity and Inclusion	67
			Sustainability Governance	68

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Environment	72
Environment Policy	74
Facilities and Production Processes	76
Environmental Performance	78
Energy Consumption and Renewable Sources	79
Water Withdrawal	82
Water Discharges	83
Waste Management	83
Emissions into the Atmosphere	85
Greenhouse Gas Emissions	85
Our People	88
Staff Management Policy	90
Staff Composition	90
Contract Type	92
Recruiting Activities	93
Training and Career Development	94
Employee Well-being	96
Corporate Welfare	96
Equal Opportunity	97
Parental Leave	97
Workplace Health and Safety	98
Policy	98
Safety Organization	99
Accident Risk Assessment	99
Staff Training	99
Injouries and Occupational Diseases	100
Value Chain Management	102
Ethical Supply Chain Management	104
Customer Satisfaction	106
Quality Management System	107
Sustainability for the Territory	108

Methodological Note	114
GRI Context Index	118

LETTER FROM THE CHIEF

EXECUTIVE OFFICER

Dear Stakeholders,

During 2022 our Group achieved important targets and recorded significant growth. We reached enthusiastic goals from a commercial and financial standpoint, along with a solid global presence worldwide; we strengthened the positioning of our brands in the luxury segment thought even stronger partnerships with some of the most acknowledged brands globally; we successfully relaunched Perini Navi and Picchiotti, some of the most prestigious brand names in international yachting.

These achievements are the result of the strong joint effort from our managers, employees, suppliers, partners, investors - all active part of a virtuous system based on collaboration and mutual respect.

Nevertheless, the success achieved so far does not divert our attention from the daily commitment to our job, to the sense of responsibility we feel towards the community in which we operate and to the consciousness that the world presents even more ambitious challenges: from the fight against climate change to the value of diversity and inclusion and to the pressing need for a sustainable development growth system from an economic, environmental, and social perspective, aimed at continuing to benefit all our stakeholders and the whole community.

At The Italian Sea Group Social Responsibility is not only a guiding principle, but it is the strategic foundation of our business, being integrated in each and every area and in every choice that we daily make.

Our ESG strategic pillars include a solid governance system, the centrality of the wellbeing and safety of our employees, a very careful management of energy and water consumption, along with an intense R&D activity focused on finding and implementing technological solutions to significantly limit the environmental impact of yachts.

During 2022 new important milestones has enriched our story: in July we delivered Kensho, a 75 metre motor yacht already representing a benchmark for sustainable yachting; for the Marina di Carrara HQ, we sourced energy exclusively coming from renewable sources and we completed the coverage of our sheds with photovoltaic panels, saving the emission of over 1,000 tons of CO2 annually. To support the liquidity of our supply chain we signed reverse factoring agreements with major banking institutions with a total plafond of over 42 million Euros.

Through our TISG Academy we strengthened the collaboration with Trieste,

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Genoa and La Spezia Universities to offer employees, suppliers, and students training courses.

Furthermore, we have structured a solid Sustainability governance and a policy system on the respect of human rights, diversity, environment and dialog with our shareholders.

In this Non-Financial Report you will find detailed information on what we have achieved so far and what we commit to achieve in the next three years. We have a very clear strategy, developed after carefully listening to our stakeholders' needs and a broad roadmap with ambitious goals: environment, governance, social impact.

Among the many initiatives in the pipeline, we will continue to work to further reduce the environmental impact of our business, by increasing the use of renewable-source energy and compensating the already limited Scope 1 and Scope 2 emissions. We will invest to make our supply chain even more sustainable and we will strengthen the centrality of the wellbeing and development of our employees - in absolute gender equality - by organising, among other activities, annual appointments to listen to their needs and to plan improvement initiatives. The achievement of ESG targets will be one of the parameters of the Long-Term Incentive Plan of our management.

I wish to thank the big "The Italian Sea Group" family, operating in all our facilities and offices at all managerial and operational levels, who always work with great passion and competence.

I want to thank you Stakeholders for continuing to believe in our "factory of
emotions": I am sure that, together, we will keep building sustainable value for
the years to come.	F O U N D E R A N D C E O

And, last but surely not for importance, I wish to thank from the bottom of my heart my dear friend Giuseppe Taranto, the Manager who has supported me in thirty years of professional but above all personal relationship, based on deep respect and brotherhood.

We will forever cherish the memory of his elegant and humane approach and we will continue to express those values of respect, responsibility, and dedication that he deeply cared for.

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THE ITALIAN SEA GROUP