Report - COP Prototype

2022 Communication on Progress

CEME SPA

Published date

May 27, 2022

No. of questions

Supplemental files

All_1_sez_5_Policy_rev1_20210107_eng_.pdf CEME sustainability policy_rev. 0.pdf All_1_sez_5_Policy_rev1_20210107_eng_.pdf CEME sustainability policy_rev. 0.pdf

CEO Statement

Signed

Governance

Policies and Responsibilities

1. Does the Board / highest governance body or most senior executive of the company:

Issue an annual statement about the relevance of sustainable development to the company

Issue an annual statement that addresses impacts on both people and the environment

Issue an annual statement highlighting a zero tolerance for corruption

Sign off on organizational sustainability targets

Supervise Environmental, Social, and Governance reporting

Regularly review potential risks related to the business model

None of the above

Optional comment

CEME group CEO, Roberto Zecchi, annually reviews and approves the Sustaibability progress report

2. Does the company have a publicly stated commitment regarding the following sustainability topics?

	No, this is not a current priority	No, but we plan to have a commitment within 2 years	Yes, and the commitment is focused on our own operations	Yes, and the commitment includes our own operations and the value chain	Yes, and the commitment includes our own operations and the value chain along with communities and society
Human Rights
Labour Rights / Decent Work
Environment
Anti-Corruption

Optional comment

Sustainability Policy and Ethical Code

3. Does the company have in place a code of conduct regarding each of the following sustainability topics?

	No, this is not a current priority	No, but we plan to have a code of conduct within two years	Yes, focused on employee conduct	Yes, focused on employees and suppliers	Yes, focused on employees, suppliers, and other business relationships
Human Rights
Labour Rights / Decent Work
Environment
Anti-Corruption

Optional comment

All the topics are covered by our Code of Ethics on our website.

4. Has the company appointed an individual or group responsible for each of the following sustainability topics?

	No one is specifically responsible for this topic	Yes, with limited influence on outcomes (e.g., limited access to internal information, limited decision-making authority)	Yes, with moderate influence on outcomes (e.g., has access to relevant information, reports to senior manager)	Yes, with direct influence of some outcomes (e.g., has access to relevant information, includes one or more senior manager with decision making rights	Yes, with direct influence at the highest levels of the organization (e.g., has access to relevant information, includes most senior members of organization)
Human Rights
Labour Rights / Decent Work
Environment
Anti-Corruption

Optional comment

Yes, the members responsible are senior managers or executives, in particular: CFO is responsible for Anti-corruption, COO and Industrial Technology director for Environment, Chief Human Resources Officer for Human Rights and Labour Rights.

5. Does the company have a formal structure(s) (such as a cross-functional committee) to address each of the following sustainability topics?

	No formal structure	Yes, and with limited influence on outcomes (e.g., limited access to internal information necessary to understand risks, poor representation from relevant departments or functions)	Yes, with moderate influence on outcomes (e.g., it includes representatives of some functions, departments, or business units most relevant for addressing the risks concerned, has access to relevant information, reports to senior manager)	Yes, with direct influence on some outcomes (e.g., it includes representatives of functions, departments, or business units most relevant for addressing the risks concerned, has access to relevant information, it involves one or more members of senior management)	Yes, and with direct influence at the highest level of the organization (e.g., full access to relevant information, it involves members at highest level of organization)
Human Rights
Labour Rights / Decent Work
Environment
Anti-Corruption

Optional comment

The group has no formal structure to adress human rights topics because the company follows national regolations and, since the majority of the Group’s direct activities and suppliers are located in Europe, where Human Rights are regulated by law. Labour rights (and in particular health and safety in the workplace) and environment impacts are addressed by Gruop management system ISO 14001 and ISO 45001, while anti corruption is addressed by the 231 Model

Prevention

6. Does the company have a process or processes to assess risk?

	No, this is not a current priority	No, but we are planning to develop one in the next two years	Yes, related to our own operations	Yes, related to our own operations and entire value chain and other business relationships
Human rights risks
Labour rights risks
Environmental risks
Corruption risks

Optional comment

The majority of the Group's direct activities and suppliers are located in Europe where Human Rights are regulated by law. Labour rights, and in particular Health and Safety on work and evironmental risks are examined in the context of the certified management system ISO 45001 and ISO 14001. Principal corruption risks and prevention measures are adressed in Gruop's 231 Model.

7. Does the company have a due diligence process through which it identifies, prevents, mitigates, and accounts for actual and potential negative impacts on sustainability topics?

	No, this is not a current priority	No, but we are planning to develop one in the next two years	Yes, related to our own operations	Yes, related to our own operations and entire value chain and other business relationships
Human rights risks
Labour rights risks
Environmental risks
Corruption risks

Optional comment

ISO 14001 certified management system guides CEME in identifing, preventing and eventually mitigating potential environmental risks.

Concerns and grievance mechanisms

8. Are there any processes through which members of the company’s workforce can raise concerns about the company’s conduct related to human rights, labour rights, environment, or anti-corruption?

No, this is not a current priority

No, but we plan to within two years

Yes, we have an informal process (e.g., through supervisors, others)

Yes, we have a formal process

Optional comment

We have a Whistleblowing process that allows our employees to raise concerns about the aforementioned issues

8.1. Please provide additional detail regarding the process(es) the company has through which members of the company’s workforce can raise concerns about the company’s conduct.

	No	Yes
Is the process communicated to all employees/workers in local languages?
Is the process available to non-employees (e.g., contractors, vendors, suppliers)?
Is the process confidential (e.g., whistleblowing process)?
Are there processes in place to avoid retaliation?
Can concerns be raised about suppliers or other business relationships (e.g., clients, partners, etc.)
Other (Please provide additional information)

Optional comment

We provide an email address on both our website and ethics code. Employees can send anonymus message also through company computers or phisical mail box in common spaces.

9. Does the company provide or enable access to effective remedy to right holders / stakeholders where it has caused or contributed to the adverse impact?

	No process to enable remedy to stakeholders	Remedy available to some stakeholders (i.e., some geographies, employees only)	Remedy is available to all affected stakeholders	Remedy is available to all stakeholders, and suppliers are expected to have similar policies
Human Rights
Labour Rights / Decent Work
Environment
Anti-Corruption

Lessons

10. How does the company capture lessons regarding each of the following sustainability topics?

	No lessons are regularly captured	Conducts root cause analyses/investigation of major incidents	Conducts root cause analyses/investigation and changes organizational policies, processes, and practices accordingly	Systematically conducts root cause analyses/investigation and leverages learnings to influence both internal and external affairs
Human Rights
Labour Rights / Decent Work
Environment
Anti-Corruption

Optional comment

Preventive audits, analysis and investigations on Health and Safety and Environmental topics are regularly performed as part of ISO 14001 and ISO 45001

Executive Pay

11. Is executive pay linked to performance on one or more of the following sustainability topics?

Board Composition

12. Percentage of individuals within the company’s Board / highest governance body by:

	Number/Percentage	Not applicable (Please provide additional information)
Total number of board members (#)	6
Male (%)	83
Female (%)	17
Non-binary (%)	0
Under 30 years old (%)	0
30-50 years old (%)	33
Above 50 years old (%)	67
From minority or vulnerable groups (%)	0
Executive (%)	0
Independent (%)	0

Data Assurance

14. Is the information disclosed in this questionnaire assured by a third-party?

No assurance for any metrics

Limited assurance for minority of metrics (e.g., GHG emissions only)

Limited assurance for majority of metrics

Reasonable assurance for minority of metrics

Reasonable assurance for majority of metrics

Other (Please provide additional information)

Human Rights

Commitment

2. Does the company have a policy commitment in relation to the following human rights issues?

	No, and we have no plans to develop a policy	No, but we plan to in the next two years	Yes, included within a broader policy	Yes, articulated as a stand-alone policy
Rights of women and/or girls
Freedom of expression
Rights of refugees and migrants
Digital security / privacy
2019
Rights of indigenous peoples
Access to culture
Free, prior and informed consent
Access to water and sanitation

Optional comment

Ethical code (2019) & sustainability policy (2021)

2.1. For each human rights policy, is it:

	Aligned with international human rights standards?	Publicly available?	Approved at most senior level of the company?	Applied to the company’s own operations?	Applied to the company’s supply chain and/or other business relationships?	Developed involving human rights expertise from inside and outside the company?	Other (Please provide additional information)
Freedom of expression
Digital security / privacy
Rights of women and/or girls
Access to culture
Rights of indigenous peoples
Free, prior and informed consent
Rights of refugees and migrants
Access to water and sanitation

Optional comment

Our Code of Ethics is pubblicy available on the CEME website, it applies to all the Group and it regulates the relationship between employees and with clients and suppliers.

Prevention

3. In the course of the reporting period, has the company engaged with affected stakeholders or their legitimate representatives in relation to the following human rights issues?

	No engagement on this topic	To better understand the risks/ impacts in question	To discuss potential ways to prevent or mitigate the risks/ impacts in question	To agree on a way to prevent/ mitigate the risks/ impacts in question	To assess progress in preventing /mitigating the risks/impacts in question	To collaborate in the prevention/ mitigation of the risks/ impacts in question
Rights of women and/or girls
Freedom of expression
Rights of refugees and migrants
Digital security / privacy
Rights of indigenous peoples
Access to culture
Free, prior and informed consent
Access to water and sanitation

4. What type of action has the company taken in the reporting period with the aim of preventing/mitigating the risks/impacts associated with this human rights issue?

	Provided internal training/ capacity building for the direct workforce	Building capacity among relevant business relationships (e.g., partners, suppliers, clients, etc.)	Conducting an audit process and/or corrective action plan	Collective Action with peers or other stakeholders to address the issue	Collaboration with governmental or regulatory bodies	Other (Please provide additional information)	No action within reporting period
Rights of women and/or girls
Freedom of expression
Rights of refugees and migrants
Digital security / privacy
Rights of indigenous peoples
Access to culture
Free, prior and informed consent
Access to water and sanitation

Optional comment

We provide training on the 231 Model and Code of Ethics to new employees, in particular manager and executives. We also provide periodic training courses when an update of the 231 model, code of ethics, or relevant legislation takes place and periodic informative material

5. Who receives training for the following human rights issues?

	No training provided	Select employees	All employees	Contractors	Direct suppliers of the organization	Indirect suppliers of the organization	Other – such as partners, clients, etc.
Rights of women and/or girls
Freedom of expression
Rights of refugees and migrants
Digital security / privacy
Rights of indigenous peoples
Access to culture
Free, prior and informed consent
Access to water and sanitation

Optional comment

6. How does the company assess progress in preventing/mitigating the risks/impacts associated with the following human rights issues?

	No monitoring of progress	Review issues on ad-hoc basis	Set annual targets/ goals, track progress over time (internal programs only)	Set annual targets/ goals, track progress over time (internal and external programs)	Other (Please provide additional information)
Rights of women and/or girls
Freedom of expression
Rights of refugees and migrants
Digital security / privacy
Rights of indigenous peoples
Access to culture
Free, prior and informed consent
Access to water and sanitation

Response

7. During the reporting period, has the company been involved in providing or enabling remedy where it has caused or contributed to adverse impact associated with the following human rights issue(s)?

	Yes	No	Choose to not disclose	Not applicable (Please provide additional information)
Rights of women and/or girls
Freedom of expression
Rights of refugees and migrants
Digital security / privacy
Rights of indigenous peoples
Access to culture
Free, prior and informed consent
Access to water and sanitation

8. Briefly describe practical actions the company has taken during the reporting period and/or plans to take to implement the human rights principles, including any challenges faced and actions taken towards prevention and/or remediation.

CEME organizes its activities to comply with the laws and regulations in force, as well as with the principles and rules of conduct expressed in its Code of Ethics. The Code of Ethics represents an enunciation of corporate values, as well as the rights, duties and responsibilities of CEME with respect to all of its stakeholders. The document contains general principles and the rules of conduct that inform the Group’s daily activities and represents its standard of reference. The Group pursues its mission by operating legally and fairly, creating added value for its shareholders and fostering the growth of the Company, its employees and collaborators. As provided by the Model 231, pursuant to the Italian Legislative Decree no. 231/2001, and all applicable legislation, CEME has appointed a Supervisory Body (Organismo di Vigilanza) entrusted with the task of controlling internal implementation and corporate compliance with the model, as well as its updating process. At present, CEME’s sustainability reporting does not directly address the UNGC issues and principles related to Human Rights, since the majority of the Group's direct activities and suppliers are located in Europe, where Human Rights are regulated by law. As for Zhongshan, the Group’s Code of Ethics directly applies to the Chinese plant practices. In addition, some of the most important human rights issues related to the Group’s activity, such as occupational health and safety, are already included among the "Labour" principles and issues the Company is reporting on.

Labour

Commitment

1. Does the company have a policy commitment in relation to the following labour rights principles?

	No, and we have no plans to develop a policy	No, but we plan to in the next two years	Yes, included within a broader policy	Yes, articulated as a stand-alone policy	Not applicable (Please provide additional information)
Freedom of association and the effective recognition of the right to collective bargaining
Not applicable for CCNL and level two bargaining
Forced labour
Not applicable for CCNL and law
Child labour
Not applicable for CCNL and law
Non-discrimination in respect of employment and occupation
Ethical code (2019), sustainability policy (2021)
Occupational safety and health
Quality, Environment, Occupational safety and health policy (2021)
Working conditions (wages, working hours)
Ethical code (2019)

Optional comment

The totality of CEME employees are covered by collective baragaining agreements. All documents are public and available on company website

1.1. For each labour rights policy, is it:

	Aligned with international labour standards?	Publicly available?	Approved at most senior level of the company?	Applied to the company’s own operations?	Applied to the company’s supply chain and/or other business relationships?	Developed involving labour rights expertise from inside and outside the company?	Other (Please provide additional information)
Freedom of association and the effective recognition of the right to collective bargaining
Forced labour
Child labour
Non-discrimination in respect of employment and occupation
Occupational safety and health
Working conditions (wages, working hours)

Optional comment

CEME policy commitment to labour right is stated in the Code of Ethics, in the Sustainability Policy and in the integrated Quality, Envirnoment and Health and safety policy, pubblicy available on CEME website. In particular, the Code of Ethics applies to all the Group and regulates the relationship in daily operation inside the Gruop and within client and suppliers.

Prevention

2. In the course of the reporting period, has the company engaged with affected stakeholders or their legitimate representatives in relation to the following labour rights issues?

	No engagement on this topic	To better understand the risks/ impacts in question	To discuss potential ways to prevent or mitigate the risks/ impacts in question	To agree on a way to prevent/ mitigate the risks/ impacts in question	To assess progress in preventing/ mitigating the risks /impacts in question	To collaborate in the prevention/ mitigation of the risks/ impacts in question	Other (Please provide additional information)
Freedom of association and the effective recognition of the right to collective bargaining
Forced labour
Child labour
Non-discrimination in respect of employment and occupation
Occupational safety and health
Working conditions (wages, working hours)

Optional comment

CEME periodically meet with the labor unions and workers' representatives to discuss risks, results, precaution methods and areas of improvent.

3. What type of action has the company taken in the reporting period with the aim of preventing/mitigating the risks/impacts associated with this labour rights issue?

	Provided internal training/ capacity building for the direct workforce	Building capacity among relevant business relationships (e.g., partners, suppliers, clients, etc.)	Conducting an audit process and/or corrective action plan	Collective Action with peers or other stakeholders, in particular workers' organizations, to address the issue	Collaboration with governmental or regulatory bodies	Other (Please provide additional information)	No action within reporting period
Freedom of association and the effective recognition of the right to collective bargaining
Forced labour
Child labour
Non-discrimination in respect of employment and occupation
Occupational safety and health
Working conditions (wages, working hours)

4. Who receives training for the following labour rights issues?

	No training provided	Select employees	All employees	Contractors	Direct suppliers of the organization	Indirect suppliers of the organization	Other – such as partners, clients, etc.
Freedom of association and the effective recognition of the right to collective bargaining
Forced labour
Child labour
Non-discrimination in respect of employment and occupation
Occupational safety and health
Working conditions (wages, working hours)

Optional comment

Collective national agreement CCNL

5. How does the company assess progress in preventing/mitigating the risks/impacts associated with the following labour rights issues?

	No monitoring of progress	Review issues on ad-hoc basis	Set annual targets/ goals, track progress over time (internal programs only)	Set annual targets/ goals, track progress over time (internal and external programs)	Other (Please provide additional information)
Freedom of association and the effective recognition of the right to collective bargaining
Forced labour
Not applicable - collective national agreement by law CCNL
Child labour
Not applicable - collective national agreement by law CCNL
Non-discrimination in respect of employment and occupation
Occupational safety and health
Working conditions (wages, working hours)

Optional comment

Annual targets are fixed for Health and safety working conditions also in compliance with the requirement of ISO 45001. Furthermore, since 2016 the Group’s Italian sites are covered by a second level contract integrating the national agreement already in force. The contract allows for better regulation of the employment relationship, guaranteeing adequate labor protection and essential flexibility for the Company.

Performance

6. What is the percentage of employees covered under collective bargaining agreements?

	Percent of employees (%)	Unknown
Employees covered under collective bargaining (%)	100

Optional comment

The totality of CEME employees are covered by collective bargaining agreements.

7. What is the percentage of employees in a trade union or other workers' organization?

	Percent of employees (%)	Unknown	Not applicable (Please provide additional information)
Employees in a trade union or on a worker committee (%)	24

8. In the course of the reporting period, what was the percentage of women in:

	Percent of women (%)	Unknown
Senior leadership level position	0
Non-executive board	22

Optional comment

22% of women in middle management

9. What was the average ratio of the basic salary and remuneration of women to men (comparing jobs of equal value) during the reporting period?

	Salary ratio (%)	Unknown	Choose to not disclose
Women / Men (%)	48

Optional comment

Overall basic salary ratio is calculated as the difference between the average gross hourly earnings (salaries) of male paid employees and of female paid employees as a percentage of the average gross hourly earnings (salaries) of male paid employees

10. In the course of the reporting period, how frequently were workers injured (injuries per hour worked)?

	Frequency of injury	Unknown	Choose to not disclose
Frequency of injury	1

Optional comment

Calculated by the total number of injuries multiplied by 200,000 divided by overall number of hours worked in the reporting period.

11. In the course of the reporting period, what was the company’s incident rate?

	Incident rate	Unknown	Choose to not disclose
Incident rate	0

Optional comment

Calculated by the number of work days lost (due to work accidents) x 1,000 / Total Hours Worked

Response and Reporting

12. In the course of the reporting period, has the company been involved in providing or enabling remedy where it has caused or contributed to the adverse impact associated with the following labour rights issues?

	Yes	No	Choose to not disclose	Not applicable (Please provide additional information)
Freedom of association and the effective recognition of the right to collective bargaining
Forced labour
Child labour
Non-discrimination in respect of employment and occupation
Occupational safety and health
Working conditions (wages, working hours)

13. Briefly describe practical actions the company has taken during the reporting period and/or plans to take to implement the labour rights principles, including any challenges faced and actions taken towards prevention and/or remediation.

As stated in CEMEs Sustainability policy the Group acts by respecting the fundamental rights of every individual and by guaranteeing equal opportunities and the fight against any form of discrimination. CEME undertakes to safeguard every person’s physical, moral and cultural integrity, while pledging to work conditions that do not threat the individuals dignity. The totality of CEME employees are covered by collective baragaining agreements. Furthermore, since 2016 the Group's Italian sites of Trivolzio and Tarquinia are covered by a second level contract integrating the national agreement already in force. The contract allows for better regulation of the employment relationship, guaranteeing adequate labor protection and essential flexibility for the company. For CEME, the health and safety of its people is paramount. H&S matters are dealt with at Regional level: both Italian and Chinese plants can count on established practices, policies and management systems that guarantee full compliance with local legislative requirements, moreover from 2021 the health and safety management systems of CEME's italian plants and ODE are certified ISO 45001.

Environment

Commitment

1. Does the company have a formal policy on the following environmental topics?

	No, and we have no plans to develop a policy	No, but we plan to in the next two years	Yes, included within a broader policy	Yes, articulated as a stand-alone policy	Not applicable (Please provide additional information)
Climate Action
Sustainability policy (2021)
Water
Sustainability policy (2021)
Oceans
Forests / Biodiversity / Land Use
Air Pollution
Waste (e.g., chemical spills, solid waste, hazardous, plastic, etc.)
Sustainability policy (2021)
Energy & Resource Use
Sustainability policy (2021)

Optional comment

Sustainability Policy 2022; Integrated Quality, Environment, Health and Safety System Policy

1.1. For each environmental policy, is it:

	Aligned with international environmental standards?	Publicly available?	Approved at most senior level of the company?	Applied to the company’s own operations?	Applied to the company’s supply chain and/or other business relationships?	Developed involving environmental expertise from inside and outside the company?	Other (Please provide additional information)
Climate Action
Water
Oceans
Forests / Biodiversity / Land Use
Air Pollution
Waste (e.g., chemical spills, solid waste, hazardous, plastic, etc.)
Energy & Resource Use

Optional comment

Sustainability policy (2021). Public on company website

Prevention

2. In the course of the reporting period, has the company engaged with affected stakeholders or their legitimate representatives in relation to the following environmental issues?

	No engagement on this topic	To better understand the risks/ impacts in question	To discuss potential ways to prevent or mitigate the risks/ impacts in question	To agree on a way to prevent/ mitigate the risks/ impacts in question	To assess progress in preventing/ mitigating the risks/ impacts in question	To collaborate in the prevention/ mitigation of the risks/ impacts in question	Other (Please provide additional information)
Climate Action
Water
Oceans
Forests / Biodiversity / Land Use
Air Pollution
Waste (e.g., chemical spills, solid waste, hazardous, plastic, etc.)
Energy & Resource Use

Optional comment

In 2021 CEME set out a GHG emission reduction target. The target and possible reduction strategies, such as the purchasing of 100% of the electricy of the italian plant from renewable sources have been pubblished in CEME sustainability report 2020.

3. What type of action has the company taken in the reporting period with the aim of preventing/mitigating the risks/impacts associated with these environmental topics?

	Provided internal training/ capacity building for the direct workforce	Building capacity among relevant business relationships (e.g., partners, suppliers, clients, etc.)	Conducting an audit process and/or corrective action plan	Collective Action with peers or other stakeholders to address the issue	Collaboration with governmental or regulatory bodies	Other (Please provide additional information)	No action within reporting period
Climate Action
In 2020 CEME set out a GHG emission reduction target aligned to Science based targets methodology, moreover the Group set out a target for the purchase of 100% of the electricity of the Italian plant from renewable sources. Furthermore, CEME has implemented an ISO 14001:2015 certified Environmental Management System that covers the Trivolzio, Tarquinia, Segrate, Colico and Zhongshan sites, and sets out the requirements for managing environmental aspects within the Company, as a result the company set annual goals and target on water and waste management procedures and conduct internal audit on the topic.
Water
Oceans
Forests / Biodiversity / Land Use
Air Pollution
Waste (e.g., chemical spills, solid waste, hazardous, plastic, etc.)
Energy & Resource Use

Optional comment

In 2020 CEME set out a GHG emission reduction target aligned to Science based targets methodology, moreover the Group set out a target for the purchase of 100% of the electricity of the Italian plant from renewable sources. Furthermore, CEME has implemented an ISO 14001:2015 certified Environmental Management System that covers the Trivolzio, Tarquinia, Segrate, Colico and Zhongshan sites, and sets out the requirements for managing environmental aspects within the Company, as a result the company set annual goals and target on water and waste management procedures and conduct internal audit on the topic.

4. How does the company assess progress in preventing/mitigating the risks/impacts associated with the following environmental topics?

	No monitoring of progress	Review issues on ad-hoc basis	Set annual targets/ goals, track progress over time (internal programs only)	Set annual targets/ goals, track progress over time (internal and external programs)	Other (Please provide additional information)
Climate Action
Water
Oceans
Forests / Biodiversity / Land Use
Air Pollution
Waste (e.g., chemical spills, solid waste, hazardous, plastic, etc.)
Energy & Resource Use

5. In the course of the reporting period, has the company been involved in providing or enabling remedy for any actual impacts associated with the following environmental issue(s)?

	Yes	No	Choose to not disclose	Not applicable (Please provide additional information)
Climate Action
Water
Oceans
Forests / Biodiversity / Land Use
Air Pollution
Waste (e.g., chemical spills, solid waste, hazardous, plastic, etc.)
Energy & Resource Use

Climate Action

6. What were the company’s gross global greenhouse gas emissions for the reporting period?

Scope 1 Emissions

Full

None

Emissions (tCO2e)

1303

Scope 2 Emissions

Full

None

Emissions (tCO2e)

4017

Scope 3 Emissions

Full

Partial

None

Emissions (tCO2e)

146570

Optional comment

Scope 1 (full), scope 2 (full_market base); scope 3 (partial). In accordance with the GHG Protocol Corporate Accounting and Reporting Standard. Scope 1 emissions include: fuels used for company car fleet, refilling of air conditioning systems, fuel used for heatings and emergency generators, while scope 2 include electricity purchased from national grid.

7. What percentage of the company's revenue was invested in R&D of low-carbon products/services during this reporting period?

Percent of revenue (%)

Unknown

Not applicable (Please provide additional information)

8. Has the organization acted to support climate change adaptation and resilience?

We have taken action to increase organization-wide resilience to climate change

We have taken action to increase resilience in our supply chains

We have taken action to increase resilience in the communities in which we operate

We have provided funding for climate change adaptation and resilience initiatives and projects

We have not taken actions to build climate change resilience in the reporting period

Other (Please provide additional information)

Unknown

Energy / Resource Use

9. Please report the company's renewable energy consumption as a percentage of total energy consumption in the reporting period.

% of total energy consumption

Unknown

Optional comment

From January 2021 CEMEs Plants of Tarquinia and Trivilzio purchase the 100% of electricity from renewable soruces (Guarantee of Orgins)

Technology

10. What percent of the company's revenue came from environmentally friendly products / services during this reporting period?

Percent of total revenue (%)

CEME has engineered a series of valves aimed at the sanitary market, suitable for electronically controlled sanitary fittings (such as flush toilet systems or public faucets).The water flows, passing through a sophisticated system of micro channels, allowing for quick and progressive closing, reducing energy consumption and water waste.

Unknown

Not applicable (Please provide additional information)

Sector-specific: Water

12. Please provide details regarding the company's water withdrawal and consumption (own operations) during the reporting period.

Water withdrawal (volume of water in megaliters):

	Mega-liters	Unknown	Not applicable (Please provide additional information)
Total	77411
Groundwater:	77411
Surface water:	0
Rainwater:	0
Wastewater:	0
Percentage of water withdrawn in regions with high or extremely high water stress (%)	0

Water consumption (volume of water in megaliters):

	Mega-liters	Unknown	Not applicable (Please provide additional information)
Total	0
Groundwater:	0
Surface water:	0
Rainwater:	0
Wastewater:	0
Percentage of water consumed in regions with high or extremely high water stress (%)
the Group does not operate in regions with high or extremely high water stress

Optional comment

CEME uses water mainly for civil use in office buildings and in product test during production process, water is discharged to municipal sewer and sent for treatment, water discharges can be assumed equal to water withdrawals.

13. Please provide details about the company’s water intensity of products in regions with high or extremely high water stress.

Water intensity of products (cubic meter/$):

Unknown

Not applicable (Please provide additional information)

the Group does not operate in regions with high or extremely high water stress

Sector-specific: Air pollution

17. Where applicable, please report the company's emissions of the following pollutants during the reporting period.

	Emissions (tCO2e)	Unknown	Not applicable (Please provide additional information)
NOx
SOx
Volatile Organic Compounds (VOC)
Hazardous air pollutants (HAP)
Particulate matter (PM10)
Persistent organic pollutants (POP)
Other (please specify in text box)

Optional comment

Competent authorities regularly carry out chimney concentration emission checks. In 2021 the resulting emissions have always been below the limits imposed by law.

Sector-specific: Waste

18. Please report the company's total weight of waste generated in metric tonnes during the reporting period.

Waste Generated (t)

4499

Unknown

Not applicable (Please provide additional information)

19. Please report the percentage of the company's waste that was hazardous waste (i.e., hazardous waste ratio) during the reporting period.

Hazardous Waste Ratio (%)

Unknown

Not applicable (Please provide additional information)

20. Please report the company's estimated metric tonnes of single-use plastic consumed wherever material along the value chain during the reporting period.

Single-use plastics (tonnes)

Unknown

Not applicable (Please provide additional information)

Optional comment

Data only applies to Company headquarters in Trivolzio. Since 2021 CEME started a project to replace all the single-use plastic in all the italian plants.

Overall Environment

21. Briefly describe practical actions the company has taken during the reporting period and/or plans to take to implement the environment principles, including any challenges faced and actions taken towards prevention and/or remediation.

The Company strives to guarantee full compliance with all applicable laws and regulations in its production plants. CEME has implemented an ISO 14001:2015 certified Environmental Management System that covers the Trivolzio, Tarquinia and Zhongshan sites, and sets out the requirements for managing environmental aspects within the Company. Energy consumption is one of the most important priorities for CEME and the Company in recent years started to rationalize its consumption through specific initiatives aimed at enhancing energy efficiency, moreover from 2021 CEME purchased electricity from renewable sources for Trivolzio and Tarquinia plants. CEME has also set out a GHG emisission reduction target (-27.5& of 2019 emissions by 2030) and from 2020 the Group become Carbon Neutral by offsetting remaining carbon emissions with quality,nature-based carbon credits coming from positive impact projects.

Anti-corruption

Commitment

1. Does the company have an anti-corruption compliance programme?

No, it is not an immediate business priority

No, but we plan to in the next two years

Yes

2019

Optional comment

Model 231 (2019), pursuant to the Italian Legislative Decree no. 231/2001.

2. Does your company have policies and recommendations for employees on how to act in case of doubt and/or in situations that may represent a conflict of interest, e.g. with regard to gifts and hospitality, donations, sponsorship, or interactions with public officials?

No, and we have no plans to develop a policy

No, but we plan to in the next two years

Yes, included within a broader policy

Yes, articulated as a stand-alone policy

Optional comment

Ethical code, 231 model

Prevention

3. Who receives training on anti-corruption and integrity?

Optional comment

Specific training on anti-corruption is provided to all the managers and executives during the on boarding after a new hire or a promotion, Additional training is scheduled in the event of regulatory changes

3.1. How often is such training provided?

	One time only	Every year	Every two or more years	We do not collect this data
All employees
Select employees
Contractors
Direct suppliers of the organization
Other – such as partners, clients, etc.
Indirect suppliers of the organization

Optional comment

Anti corruption training is scheduled to be carried once, usually when the employee is hired. Additional training is scheduled in the event of regulatory changes

4. Does the company monitor its anti-corruption compliance programme?

No, we do not monitor the anti-corruption compliance programme

Review issues on ad-hoc basis

Yes, through internal employee self-evaluations

Yes, through automated controls monitoring

Yes, through external independent monitoring

Yes, through other mechanisms

Optional comment

The Group monitors its anti-corruption compliance programme through an external indipendent monitoring party (OdV) and in case of suspicious cases organizes ad hoc investigations

Response and Reporting

5. Please report the company's total number and nature of incidents of corruption during the reporting year.

	Number of incident(s)	Unknown	Choose to not disclose
Confirmed during the current year, but related to previous years	0
zero
Confirmed during the current year, and related to this year	0
zero

6. Within the reporting period, what measures has the company taken to address suspected incidents of corruption independently or in response to a dispute or investigation by a government regulator?

Initial case assessment

Internal investigation

Review by risk / ethics committee

Review by board of directors

External audit / review

Other (please provide additional information)

Not applicable/no incidents in the reporting period

7. Does your company engage in Collective Action against corruption?

No, it is not an immediate business priority

No, but we plan to in the next two years

Yes (please explain)

8. Briefly describe practical actions the company has taken during the reporting period and/or plans to take to implement the anti-corruption principle, including any challenges faced and actions taken towards prevention and/or remediation.

The Group "anti-corruption" policy principles are calibrated against the UK Bribery Act, issued in 2010. Model 231 is applied. CEME Code of Ethics serves to enunciate the corporate values we stand for and the rights, duties, and responsibilities of CEME concerning all of its stakeholders. As proof that our efforts toward anti-corruption are legitimate we recorded no incidents of corruption in 2021.