Space Popular, The Wardian Case, “De Coding Alcantara® in the Tapestry Rooms”, Royal Palace, Milan, 2019 AND RESPONSIBILITY IDENTITY IDENTITY

1 1.1 Mission, Values 1.2 The History of Alcantara S.p.A. and Sustainability Strategy

Mission Alcantara S.p.A. operates in the market For Alcantara S.p.A., sustainability The fascinating story of Alcantara® 1995 definitive transfer of 100% of the 2016 3rd International Sustainability of premium upholstering materials is a strategic orientation capable of begins with a revolutionary technological shares from Group to Toray Symposium organised in Tokyo, with an internationally recognised directing development and investment breakthrough, an invention in 1970 that Group; immediately afterwards in partnership with Nikkei, VIU brand and a process of continuous choices. is still unparalleled, thanks to which Toray Group transferred 30% to (Venice International University) innovation supported by a business From this a plan is created that is the product maintains its avant-garde Mitsui Group; and Waseda University; model where technology creates consistent with the Company’s characteristics and uniqueness over solutions of high aesthetic value. corporate objectives and sustainability time. Below are the milestones on 1998 first intervention to double the 2017 announcement of the IACI Alcantara S.p.A.’s presence on a goals, which derive from the decisions Alcantara S.p.A.’s path of growth: production capacity in the plant; project (acronym for “Increase global scale and innovative business of Alcantara S.p.A.’s senior management Alcantara Capacity Installed”) model allow it to undertake a path and are a cornerstone of the Company’s 2000 initiation of the first stylistic with an expansion plan aimed of sustainability based on a long- positioning and its commitment to diversification activities, the at doubling the Company’s term vision, focused on the values the market and stakeholders. 1970 invention of Alcantara®: Japanese embryonic stage of the Design Office; production capacity within 5 of quality, research, service, fairness, scientist Miyoshi Okamoto filed years; consistency, human centrality and the patent for the material; 2002 completion of the second respect for the environment. intervention to double production 2018 4th International Sustainability 1972 agreement with the ANIC Group, capacity; Symposium organised in Venice later ENI, for the commercial in partnership with VIU (Venice use of the patent (i.e. Joint 2009 obtainment of Carbon Neutrality International University) on Venture between the ENI Group certification (from cradle to gate); the theme “Coping with and the Toray Group, the basic climate: Global Warming and technology provider); 2010 publication of Alcantara S.p.A.’s Decarbonization”; first Sustainability Report; Points of Engagement 1972 ANTOR S.p.A. (acronym for ANIC start of sales of a special version 2019 5th International Sustainability Toray) was established; 51% of Alcantara® material, with up Symposium organised in Venice The elements and pillars on which Alcantara S.p.A. bases its commitment are ANIC (then ENI) and 49% SOFID to 25% of its weight made up of with the support of the World the so-called “points of engagement”: (Group Finance Company); post-consumption recycled raw Bank Group’s Connect4Climate materials; global partnership programme; • made in Italy; 1972 the production plant was • global brand; created in Nera Montoro - still 2011 installation of the phyto-treatment 2019 Alcantara S.p.A. celebrated its • art, design and creativity; today the one and only plant in plant, first collection of finished 10th anniversary of Carbon • tailor-made approach; the world where Alcantara® is products with the proprietary brand Neutrality and its tenth 10th edition • sustainability. produced - and the Company’s “A’alcantara” and obtainment of of the Sustainability Report; headquarters were established the Carbon Neutrality of product in Milan; (from cradle to grave); 2020 Alcantara S.p.A. reconfirmed for the third consecutive year its Sustainability 1973 ANTOR S.p.A. changed its name 2012 operations initiated in the new membership of the United to IGANTO S.p.A. (acronym co-generation plant; Nations Global Compact and For Alcantara S.p.A., sustainability is a key factor of diversification and competitive for Italy Japan ANic TOray) to the Global Compact Network advantage, capable of creating shared value not only for the Company, but also seal the partnership between 2014 1st International Sustainability Italy Foundation, the two largest for the various stakeholders: clients, suppliers, employees, shareholders, civil the two countries and their Symposium organized with Venice strategic initiatives in the world society and so on. respective companies; International University (VIU) and of corporate citizenship. For Alcantara S.p.A., sustainability means ensuring a development that meets the dedicated to sustainability in needs of the present without compromising the potential for future generations, 1974 SOFID sold its 49% stake in the the global in accordance with the SDGs (Sustainable Development Goals) defined by the capital to Toray Industries Inc. entitled “Sustainability and the United Nations. of the Toray Group; new Automotive Value Chain”; In addition, Alcantara S.p.A. adheres to the United Nations Global Compact, the Global Compact Network Italy Foundation and other sustainability practices 1981 IGANTO S.p.A. became Alcantara S.p.A., 2015 completion of the first phase that confirm the commitment to achieving the objectives defined by the Paris with share capital still divided (tests on an industrial scale) Agreement of 2015 (COP 21) in terms of reducing carbon dioxide emissions. between ENI Group (51%) and of the project started in 2013 Toray Group (49%); aimed at further reducing the environmental impact and 1994 establishment of the CSA energy consumption; As a clear, self-determined and direct action to fight climate change and speed (Centro Sviluppo Applicazioni 2nd International Sustainability up the process of decarbonizing the economy, every metre of material produced - Application Development Centre), Symposium on the theme and marketed by Alcantara S.p.A. has a net CO2 emissions balance of zero. dedicated to the in-house “The Automotive Ecosystem on Alcantara S.p.A. is Carbon Neutral since 2009. development of ad hoc technical the Global Road to Sustainability. 2 solutions and applications; The Asian Perspective”; 3 FASHION & ACCESSORIES In fashion, those who choose Alcantara® are looking for contemporary elegance: 1.3 The Corporate Structure a modern luxury, with attention to detail, highlighted by the exclusive textures of the material. Alcantara® is a material with infinite possibilities for customisation, able to cover any shape and surface, in compliance with the strictest industry standards, allowing to develop exclusive and tailor-made solutions, and meeting the technical and design requirements of the most demanding luxury brands.

Milan Headquarters CONSUMER ELECTRONICS In the consumer electronics sector, Alcantara® is recognised as a valuable material with unique characteristics, able to enhance the appearance and functionality of the finished product, with high adaptability to the most particular applications.

Nera Montoro (Terni), Production site Alcantara® has elements of uniqueness and peculiarity compared to materials and Research & Development Centre used up to now. The combination of high tech and craftsmanship typical of “Made in Italy”, is one of the strengths of Alcantara®’s competitive strategy, an additional value, especially in Asia and the United States of America.

For clients in this sector, over the years Alcantara S.p.A. has developed highly customised skills and solutions: “turnkey” projects that start from product design, through the implementation of the supply chain, up to the creation of the finished product.

INTERIORS, CONTRACT, MARINE & AVIATION Furnishing elements upholstered in Alcantara® (sofas, beds, accessories etc.) acquire bright, comfortable, soft and seductive tones. For the interiors and contract segment, Alcantara S.p.A. offers a dedicated collection of products, which includes tested and approved materials. The share capital is made up of ordinary shares of € 1 each; at 31 March 2020 the In the marine segment, the functional characteristics of Alcantara®, its resistance subscribed and paid-in share capital of Alcantara S.p.A. was € 10,800,000 and is to the agents of the marine environment, its permeability to air and its excellent divided as follows: breathability guarantee a pleasurable trip, even for the most demanding passengers. In the aviation sector, Alcantara® offers comfort, lightness, style and elegance COMPANY NUMBER OF ORDINARY SHARES FY 2020 % OWNERSHIP that make it the ideal travel companion both for the interiors of private jets and Toray Industries Inc. - Tokyo (parent helicopters and for those of large commercial airlines. 7,560,000 70 company)

Mitsui & Co. Ltd. Tokyo - Tokyo 3,240,000 30 TOTAL SHARES 10,800,000 100 1.5 Governance Structure

BOARD OF DIRECTORS The governing bodies of Alcantara S.p.A. are the Shareholders’ Meeting, the Andrea Boragno Board of Directors, the Executive Chairman and Chief Executive Officer ® Committee and the Chief Executive 1.4 The Sectors of Application of Alcantara O©cer. The main control bodies are Yasuo Suga the Board of Statutory Auditors and Katsuhiko Ando the Supervisory Body pursuant to Yasuhiro Takagi Legislative Decree No. 231/2001. Shunichiro Nakai AUTOMOTIVE With the exception of the Chairman Makoto Ito Alcantara®, thanks to its unique characteristics - grip, breathability, durability, and Chief Executive O©cer, the Masao Hayashi lightness, softness and resistance of colour under light - is highly appreciated by members of the Board of Directors are Hiroshi Serisawa the automotive industry, as it provides drivers and passengers with maximum all independent, non-executive and comfort. An important aspect of Alcantara S.p.A.’s offer lies in its experience appointed on the basis of skills and BOARD OF STATUTORY AUDITORS and ability to develop tailor-made, elegant or sporty solutions according to the qualifications in line with Alcantara S.p.A.’s stylistic declinations chosen. sustainability orientation. Giovanni Primo Quagliano Chairman Alcantara®’s Carbon Neutrality is another advantage, which makes it possible to avoid contributing to the carbon footprint of the cars in which it is used. Roberto Spada 4 Giuseppe Moretti 5 The Chairman informs the Board of Directors about decisions that have a 1.6 Operating Structure significant impact on the sustainability of the business and the progress of the most significant projects. Projects with a particular impact in terms of SUSTAINABILITY sustainability are consistent with the objectives of the Company’s strategic plan Alcantara S.p.A dedicates significant processes and is characterised by the and needle punching; and are overseen by the “Sustainability Working Group”, composed of the main focus to the development of adequate commercial divisions that manage the • high-precision mechanical processes: GOVERNANCE corporate heads of the various divisions and coordinated by the HR, Organisation production flexibility, which aims to business in the various application sectors. splitting and buffing; and IT Director in the role of Sustainability Officer. The objective of the dedicated meet the needs of different markets. The production process is very complex working group is to propose and implement, within the strategic guidelines The organisation is, in fact, based on as it is based on the integration of: • dyeing, finishing and ennobling defined by the Chairman and CEO, actions in the field of sustainability. the integrated management of business • processes: spinning, carding processes.

BOARD OF DIRECTORS

EXECUTIVE COMMITTEE The Board of Directors reviews and approves annually the Annual Risk RISK CHAIRMAN & CEO Assessment, monitoring its implementation on a regular basis, to assess and ASSESSMENT manage strategic, operational, environmental, social and governance risks. MANAGEMENT REPRESENTATIVE CORPORATE FOR QUALITY HEALTH & SAFETY GENERAL INNOVATION & GLOBAL COMMUNICATION ENVIRONMENT (RSPP) MANAGER SUPPLY DIRECTOR SUPERVISOR & SAFETY SYSTEMS

MARKETS, HUMAN RESOURCES, I.T., TECHNOLOGIES RESEARCH SUSTAINABILITY GLOBAL PURCHASING FINANCE & OPERATIONS DIRECTOR & PRODUCT AND SYSTEMS DIRECTOR SUPPLY & CONTROL DIRECTOR The approval of the Sustainability Report takes place on a voluntary basis by APPLICATION DEVELOPMENT the Chairman of the Board of Directors, as it is not currently required by law or CERTIFIED THE regulations. The Company’s management is therefore supported by a structured REPRESENTATIVE TECHNICAL SYSTEM SALES DIRECTOR system of reporting on the progress of the business and key projects. This also OFFICE CHINA DIRECTOR TECHNICAL HEAD SUSTAINABILITY allows for the correct application of incentive and remuneration systems with ASSISTANT MARKETING ACCOUNT a view to supporting and enhancing merit and allows for easy planning of the AUTOMOTIVE REPORT GROUP 1 PRODUCTION objectives set, with a capacity for achieving even those of an environmental and SUPERVISOR ACTIVITIES DEPUTY TREASURY & CREDIT social nature. PLANT PERSONNEL & MAINTENANCE DESIGN & ORGANIZATION AUTOMOTIVE OFFICE GROUP 2 TECHNOLOGIES, PLANNING SUPERVISOR QUALITY CONTROL Although there are no specific communication channels that allow stakeholders PERSONNEL SALES DIRECTOR & LABORATORY & INTERNAL to interact directly with the Board of Directors, current initiatives and future RELATION HQ AUTOMOTIVE AUDIT CORE projects are evaluated by listening to the suggestions coming from the various SAFETY department heads, the Supervisory Body, employees and representatives of FASHION & ENVIRONMENT LEGAL external stakeholders, including through the work of the representative bodies in INFORMATION & INTERIORS TECHNOLOGY SUPERVISOR which the Company participates and the recommendations of the numerous third TECHNICAL and independent parties that verify the management systems that Alcantara S.p.A. CONSUMER ELECTRONICS OFFICE utilises (see paragraph 1.8). SECURITY & FACILITY SUPERVISOR MANAGEMENT During Fiscal Year 2020, Alcantara S.p.A. complied with the New European RESEARCH & Regulation for the Processing of Personal Data (GDPR). DEVELOPMENT The Company therefore: FANS • defined the organisation chart and privacy control body; • developed registers of processing data with corresponding retention periods; • carried out the risk analysis and DPIA (Data Protection Impact Analysis) for processing CROSS-FUNCTIONAL WORKING GROUPS data presenting a risk; • coordinated the sending of information to clients, suppliers, guests, employees, candidates; In order to meet the growing • Coordination and Control Committee: functional and hierarchical structure, • appointed the persons in charge and external representatives; complexity and globality of market composed of the Chief Executive generating important advantages: • revised policies for the use of information systems, data breaches, data retention; demand, as well as the need for Officer and senior management, its • implemented continuous training processes on GDPR and Security awareness. continuous updating of supply, a task is to guide the group by setting • greater focus on the Company’s horizontal organisational system has its objectives; strategic objectives; In addition, following the entry into force of Law No. 179 of 30 November been developed, structured around • team leader: is responsible for • an increase in involvement and 2017, containing provisions for the protection of the perpetrators of reports of the collaboration between “inter- coordinating the working group; motivation, above all of middle crimes or irregularities of which they become aware in the context of a public functional teams”, as a distinctive • team members: express and contribute management; or private employment relationship, the Whistleblowing procedure was issued. feature of the Company. their skills and knowledge necessary • improvement of communication and This procedure regulates the process of receiving, analysing, evaluating and Alcantara S.p.A. has continued to achieve objectives. alignment processes; processing reports regarding illegal conduct from anyone, employees or third the process of consolidating team • development of the sense of belonging parties (persons in a relationship of interest with Alcantara S.p.A., partners, working, updating its objectives and Team working involved a large and sharing; clients, suppliers, consultants, collaborators and - in general - stakeholders), dedicating a working group to each of portion of management and middle • improvement in the “quality of the these, structuring them as follows: management, integrating with the response” and the actions taken. 6 sent or transmitted, even in confidential or anonymous form. 7 1.7 2021-2024 In line with the most advanced international practices in sustainability, Alcantara S.p.A. Sustainability Plan has developed a total of 24 specific objectives for the four areas, to be achieved in the medium term (2021-2024). These tangible commitments are represented as follows:

PLANET PEOPLE PROSPERITY SUSTAINABILITY MANAGEMENT

Alcantara S.p.A. decided to develop a Sustainability Plan in fiscal year 2017 to ENVIRONMENTAL SOCIAL ECONOMIC SUSTAINABILITY transform its commitments into practicable actions and quantitative objectives. SUSTAINABILITY SUSTAINABILITY SUSTAINABILITY GOVERNANCE In Fiscal Year 2020, the sustainability plan has been updated with the aim to renew and reconfirm the main sustainability goals of the Company. For Alcantara S.p.A., in fact, sustainability is a distinctive, strategic factor in its business activity, with the ultimate goal of helping create value for all Reduction of Reduction of stakeholders. The plan was prepared starting with the Company strategy, a Occupational Envirornmental Environmental Corporate materiality analysis, the 17 Sustainable Development Objectives of the United Health Impact Impact Citizenship Nations, and through the involvement of Company management. Alcantara S.p.A. and Safety has therefore formulated its commitment for sustainable development in four of Product of Process areas of action: Improved Increased Preparation Sustainability Carbon of a Non-financial in the Neutrality Sustainability Reporting Promotion of Art Supply Chain of Suppliers Plan CARBON and Culture NEUTRALITY

Training of suppliers

STAKEHOLDER Reduction Water SUSTAINABLE of Energy ENGAGEMENT Footprint ® INNOVATION Consumption Alcantara as Increase in & REPUTATION a Sustainable Sustainability Brand Training

Investments Sustainability Sustainability Increase in Youth Employment Tax for Guidance Risk Circular Economic trasparency sustainability Committee assessment Development International Projects PLANET PROSPERITY with Social Impact Environmental Sustainability Economic Sustainability

PEOPLE SUSTAINABILITY MANAGEMENT Social Sustainability Sustainability Governance

8 9 1.8 Risk Management Systems Alcantara S.p.A. confirms its support to the United Nations Global Compact Alcantara S.p.A. has obtained and maintains the following international certifications: for the third year in a row

Alcantara S.p.A. has equipped itself SYSTEM CERTIFICATIONS In Fiscal Year 2020, Alcantara S.p.A. reaffirmed its adherence as a Participant Member to the UN Global Compact, with an internal system for the the world’s largest corporate sustainability initiative. By supporting the UNGC, Alcantara S.p.A. confirms its long-lasting prevention of identified risks that Standard Title Body Date of 1st release commitment to sustainability and reinforces it by respecting and promoting the Ten Principles of the UNGC; along with allows it to identify, measure, manage the implementation of strategic actions, which actively contribute to the advancement of global goals, such as the and monitor the main critical issues, UNI EN 9001:2015 Quality Management TÜV SÜD September 1993 UN Sustainable Development Goals. Alcantara S.p.A. is committed to providing an annual disclosure of its activities and in line with its strategy of sustainable practices regarding the 10 Principles through this document, which also represents its Communication on Progress (CoP). Environmental business development at economic, UNI EN ISO 14001:2015 TÜV SÜD May 2000 In November 2019, Alcantara S.p.A. has published its third Communication on Progress including a description of actions social and environmental level. Management System or relevant policies related to human rights, labour and environmental issues, as well as anti- corruption practices. With regard to the mitigation of more Quality requirements SÜD February 2004 typically financial risks, reference IATF 16949:2016 of the automotive sector TÜV should be made to the Annual Report (risks associated with general SA8000® Social Accountability TÜV SÜD October 2008 economic conditions; business risk: CMS Standard The 10 Principles of the UN Global Compact credit risk; exchange rate fluctuation risk). Compensation for GHG 41 of CARBON residual greenhouse gas TÜV SÜD June 2009 NEUTRALITY emissions Alcantara’s S.p.A. responsible management (PAS 2060) model is based on a set of certified Human rights Environment management systems and appropriate Health and Safety BS OHSAS 18001:2007 Management System TÜV SÜD April 2013 governance and control mechanisms PRINCIPLE 1 PRINCIPLE 7 aimed at identifying and managing Energy management businesses should support and respect businesses should support a precautionary risks and promoting business ISO 50001:2011 system Bureau Veritas February 2017 continuity and success: the protection of internationally proclaimed approach to environmental challenges; • creating value in a sustainable way human rights; and shared with all stakeholders; Certified management systems require internal audits - performed by qualified PRINCIPLE 8 • interpreting the needs of its clients internal personnel on all business processes and functions - and periodic PRINCIPLE 2 undertake initiatives to promote greater by pursuing the best quality standards; maintenance or renewal audits performed by an accredited body. make sure that they are not environmental responsibility; • minimising the environmental impact; Moreover, Alcantara S.p.A. is equipped with authoritative certifications related • developing and controlling the to the product, also verified annually by accredited bodies. complicit in human rights abuses. supply chain; PRINCIPLE 9 • talking and listening to stakeholders. encourage the development and diffusion PRODUCT CERTIFICATIONS of environmentally friendly technologies.

Certification Validity Labour

Obtained and maintained PRINCIPLE 3 Anti-corruption Oeko-Tex Standard 100 (valid for individual brands/families) since 1995 businesses should uphold the freedom of association and the effective PRINCIPLE 10 Marine sector: IMO MED certification according to European Obtained and maintained businesses should work against corruption Directives 2002/75/EC and 96/98/EC since 2000 recognition of the right to collective (valid for individual brands/families) in all its forms, including extortion bargaining; Contract sector: certification for CPD construction products and bribery. according to European Directive 89/106/EC (valid for Obtained and maintained individual brands/families) since 2011 PRINCIPLE 4 the elimination of all forms of forced Alcantara S.p.A., after verifying consistency with its principles, subscribes to and compulsory labour; the Codes of Ethics applied by the main companies and clients with regard to sustainability issues. PRINCIPLE 5 As a strong signal to continue to contribute to the advancement of the UN’s the effective abolition of child labour; sustainable development goals, even during the Fiscal Year 2020, Alcantara S.P.A. has again subscribed to two important initiatives: PRINCIPLE 6 the elimination of discrimination in • United Nations Global Compact (UNGC); • Global Compact Network Italy Foundation (GCNI). respect of employment and occupation.

10 11 STAKEHOLDER STAKEHOLDERS KEY TOPICS MAIN ENGAGEMENT ACTIVITIES 1.9 Dialogue with Stakeholders EXPECTATIONS • Professional growth and continuous • Equal opportunities. • Internal communication events learning. • Safety in the (safety day, meetings, etc.). Listening to and involving its stakeholders with the aim of creating main stakeholders were also launched: • Meritocracy and delegation. workplace. • Meetings for sharing objectives. stakeholders are ways in which shared value. a system that allows for constant • Workplace stability. • Professional • Strategic objectives working groups. Alcantara S.p.A. can encourage a constant During Fiscal Year 2020 a number of interaction and evolutionary monitoring • Internal climate: collaboration development for • Six-monthly “House organ” as an HUMAN process of conciliation between dialogue, consultation and listening of all topics directly or indirectly and sharing objectives and all categories internal information and sharing tool. RESOURCES its own interests and those of its initiatives aimed at the Company’s related to sustainability issues. knowledge. of employees. • Reserved channel and email box • Remuneration and benefits. • Participation in for reporting. • Reconciliation of life and work. corporate life and • Constant climate monitoring and • Health and well-being in the all related initiatives. occasional surveys every 3-4 years STAKEHOLDER workplace. • Work-life balance. to understand work-life balance STAKEHOLDERS KEY TOPICS MAIN ENGAGEMENT ACTIVITIES EXPECTATIONS • Stability. or other needs. • Team building. • Meetings with trade union • Product uniqueness and • Maximisation • Organisation of meetings with the representatives. brand value. of value for senior management of major clients to • Meetings and relationships with the • Design, customisation and the consumer. illustrate the details of Alcantara S.p.A.’s local community at various levels. exclusivity. • Quality and commitment to sustainability. • Meetings with institutional bodies. • Innovation and research. continuity in the • Initiatives to promote and raise public • Transparency and commercial supply of the awareness on sustainability issues. fairness. product. • Client satisfaction and market analysis. • Atmospheric emissions. • Prevention and • AIA (Autorizzazione Integrata Ambientale • Satisfaction - listening • Support for activities carried out by • Use of raw materials. respect for the - Integrated Environmental Authorisation). complaint handling. clients (e.g. when clients communicate CLIENTS • Responsibility in the production environment. • Study at authoritative institutions • Pre-post sale services. or promote a green product/project). AND CONSUMERS process. • Corporate strategy in environmental matters. • Effective communication and • Customer care. ENVIRONMENT • Conservation and enhancement of aimed at reduction • Participation in innovative projects responsible promotional activity. • Pre and post sales assistance. environmental heritage-biodiversity. of the consumption with scientific institutions and their • Regulatory compliance and • Ad hoc visits to the Company and open • Investments in environmental of natural resources. correct communication. information - product laws doors (school groups, journalists). protection. • Collaboration in controls by the bodies protecting the end consumer. • Direct and active interaction of the in charge of controls. • Packaging and recyclability. Research Centre team with the client • Participation in category tables. • Sustainability, corporate through meetings and/or information and product. activities to customise the range.

• Carbon Neutrality - CO2. • Direct contacts at industry events and trade fairs. • Activities-investments and value • Listening to requests. • Collaboration projects with universities • Production of information materials creation in the territory. • Contribution and and training schools in Italy and abroad. dedicated to sustainability. • Environmental and quality of life support to initiatives • Contests and scholarships for young • New materials to communicate Protection and Carbon Neutrality. in the territory and designers/artists. sustainability: dedicated multilingual • Respect for human rights. local communities. • Guided tours at the plant for Italian and micro-site, multilingual video-graphics, LOCAL • Transparency and completeness • Access to information. international press, artists and multilingual leaflets (for the 2020 COMMUNITY of communication to the media • Protection of designers as well as clients. Sustainability Report the leaflet is and the local community. heritage and the • Projects with cultural and artistic written in 6 different languages: Italian, • Support for research and environment. institutions. English, German, Japanese, Chinese development, education, art and • Health and safety. • Participation in conferences and and Korean). culture initiatives. co-organisation of events. • Direct emailing activities to selected • Invitations and meetings with local lists to disseminate initiatives and/or institutions. collect feedback and input. • Ad hoc communications on the tenth anniversary of Carbon Neutrality. • Continuity and quality of work. • Compliance with • Evaluation activities foreseen by the • International workshops • Reputation. all antitrust supplier qualification process or on sustainability. • Collaboration for research competition laws. certified systems. • Renewed annual membership in the SUPPLIERS and development activities. • In operational • Technical visits and periodic meetings. United Nations Global Compact as a • Safety and sustainability countries. • Systematic quality response (feedback). “Participant” member and in the Global as values. • Collaborations for improvement Compact Network Italy. or innovation. • Compliance with laws. • Collaboration, • Collaboration in visits or audits of the • Profitability and business value. • Value creation for • Shareholders’ Meeting and representation • Administrative and fiscal technical support Public Administration. • Reputational protection. the Shareholder. to the Board of Directors. regularity. • Participation in thematic institutional SHAREHOLDERS and information • Transparency. • Corporate • Participation in internal and Group PUBLIC • Activities - investments and sharing. tables. • Correctness in management. Governance and events and international conferences. INSTITUTIONS value creation in the territory. • Participation in spatial • Participation in projects, calls for Risk Management. • Involvement for the formulation and • Reporting. planning of activities. proposals or institutional research. • Representation revision of the Code of Ethics and the • Compliance with • Monitoring of updates issued by the of minorities. Organisational Model. legislation in all Italian Accounting Body. • Transparency and • Periodic review of: J-SOX, ERM countries where • Periodic reporting to ISTAT, Bank of Italy, timeliness in (Enterprise Risk Management), Security Alcantara S.p.A. Mediobanca and Lombardy Region. economic and Trade Control, C-MOS operates. (Control Monitoring Online System). 12 financial information. 13 Through the Sustainability Report, Alcantara S.p.A. aims to identify the issues deemed of greatest interest by stakeholders Sustainability strategies and governance to provide them with adequate answers. Also in Fiscal Year 2020, the Company carried out a process of updating the Ethics, integrity and regulatory compliance “materiality matrix” which aims to intercept the information needs to be included in reporting. Sustainability strategy and governance The methodology used to update the matrix and the definition of potentially relevant issues provided for: • an internal analysis based on various public and non-public internal sources; • an activity of direct involvement of external stakeholders through the Involvement of the Community and the territory administration of a survey; Clients’ safety and satisfaction • an analysis of the sector and other external sources to identify other potential Development and training of human resources relevant issues. Working conditions, welfare and respect for human rights The analyses carried out identified 19 issues relevant to the sector in which Alcantara S.p.A. operates. Each of them, through Health and safety in the workplace the use of qualitative-quantitative scales, was assigned a score from 1 to 5, in terms of “Relevance for Alcantara S.p.A.” and “Relevance for stakeholders”. The two dimensions respond to the need to identify the degree of relevance perceived Product quality by stakeholders on the various issues and the degree of commitment that the Company has undertaken or will assume on those issues. In order to identify the priority - material issues, the value 2.5 has been defined as the materiality threshold. Transport and logistics Energy efficiency and renewable energy sources ALCANTARA S.P.A. 2020 MATERIALITY MATRIX Water, waste and chemical management 4.00 Greenhouse gas emissions management (Carbon Footprint, Carbon Neutrality, LCA) Greenhouse gas emissions management (Carbon Footprint, Carbon Neutrality, LCA) Supplier evaluation programmes Supplier involvement in supply chain carbon neutrality Product quality

Energy efficiency Water, and renewable waste and energy sources chemical Dialogue with stakeholders management 3.50 Clients’ safety and satisfaction Sustainability Supplier evaluation strategy and programmes governance Transport and logistics Ethics, integrity and Working conditions, welfare regulatory compliance and respect for human rights Supplier involvement in supply chain carbon neutrality Health and safety in the workplace Involvement of the Community Development and the territory and training of human resources

RELEVANCE FOR STAKEHOLDERS FOR RELEVANCE 3.00 Alcantara S.p.A. has reconfirmed and perception of external stakeholders continued its commitment to the on two topics, which were the most relevant issues for the Company transparent tax approach and the and the sector in which it operates. brand’s reputation. In particular, this year the Company decided to include a new theme In addition, an important focus for concerning Covid-19 in the online the Company is the quality control survey dedicated to stakeholders: of its supply chain, which allows the Company immediately equipped it to promote the improvement of itself with tools and practices to face environmental performance and social the emergency and respond to the responsibility of its suppliers. Respect for new needs expressed by the market the environment continues to be important: 2.50 and members (for more details see for 11 years Alcantara S.p.A. has 2.50 3.00 3.50 4.00 Chapter 3.3). maintained the Carbon Neutrality certification, obtained thanks to its RELEVANCE FOR ALCANTARA S.P.A. In addition, two further issues that numerous emission reduction and did not turn out to be material were compensation projects. SUSTAINABILITY GOVERNANCE SOCIAL SUSTAINABILITY ENVIRONMENTAL SUSTAINABILITY ECONOMIC SUSTAINABILITY integrated in order to detect the 14 15 MATERIAL ISSUES STAKEHOLDERS IDENTIFIED BY TOPIC¸SPECIFIC GRI RELATED RISKS REFERENCE SDGs EXTERNAL IMPACT POLICIES PARAGRAPH ALCANTARA S.P.A. REFERENCE STANDARDS TO ALCANTARA S.p.A. • Code of Ethics Ethics, integrity Anti-corruption (GRI 205) External collaborators, • Organisation and regulatory Anti-competitive • Risk of unethical partners, consultants, and management 1.8 compliance behaviour (GRI 206) and/or illegal agents, attorneys model 231 behaviour by employees. Sustainability General disclosures • Risks of corporate • Code of Ethics strategy and (GRI 102) o’ ences. • Global compact 1.5; 1.7 Governance governance • Risks of (UNGC) non-compliance or violation of applicable legislation or regulations. • Risks of corruption Local Community, • Code of Ethics Dialogue with General disclosures o’ ences. Employees, Clients, • SA8000 1.9 stakeholders (GRI 102) • Reputation risk. Suppliers Certifi cation

Working Human Rights (GRI 412) • Health, Safety conditions, Diversity and equal and Environment welfare and opportunities (GRI 405) Employees Policy 3 respect for Non-Discrimination • Risk of increased • Code of Ethics human rights (GRI 406) turnover and loss of competent and relevant personnel. Development • Health, Safety • Risk of increased and training Training and education Local Community and Environment accidents. of human (GRI 404) Employees Policy 3 • Risk of increased resources • Code of Ethics Social work-related stress. Sustainability • Risk of incompetence • Health, Safety Health and Occupational Health and negligence. and Environment Employees safety in and Safety (GRI 403) Policy 3; 6.1 the workplace • Code of Ethics

Indirect economic impacts Involvement (GRI 203) • Lack of attention of the Community Procurement practices to social and Local Community • Code of Ethics 5.1 and the territory (GRI 204) territorial issues. Local communities (GRI 413) The correlation between the 15 “material” issues for Alcantara S.p.A. and its Customer health • Possible late and/or • Code of Ethics stakeholders and the “GRI standards” requirements is shown on the next page. Clients’ safety and safety (GRI 416) inadequate response • ISO9001 The impact of the issues, the related risks, the reference SDGs and the existing policies and satisfaction Marketing and labelling to customer Clients Certifi cation 4 feedback and • Oeko-Tex in Alcantara S.p.A. to cover them are also highlighted. The section of the Sustainability (GRI 417) Standard 100 Customer privacy (GRI 418) expected Report in which their management is described is indicated at the end of the table. satisfaction levels. certifi cation • Non-compliance of • Code of Ethics product information. • ISO9001 Customer health Product’s quality • Reputation risk. Clients Certifi cation 1.8; 4 and safety (GRI 416) • Risk of loss of • Oeko-Tex Standard 100 competitiveness. certifi cation

Water, waste Water (GRI 303) and chemical E¹ uents and waste 6.5 management (GRI 306) • Health, Safety and Environment Energy Policy ISO14001 e© ciency Energy (GRI 302) • Energy policy and renewable • Failure to comply with Suppliers 6.4 Environmental environmental laws ISO50001 energy sources • SA800 Sustainability and regulations. • Growth in energy Certifi cation Greenhouse supply costs. gas emissions • Changes in management legislation with • Carbon Neutrality Emissions (GRI 305) 6.3 (Carbon Footprint, penalty risks. Suppliers Certifi cation Carbon Neutrality, LCA) • IMO MED Certifi cation Transport • Oeko-Tex Materials (GRI 301) Suppliers and Clients 6.2 and logistics Standard 100 • Certifi cation for CPD products • Risk of increasing Economic Supplier cases of discrimination •Organisation Supplier social Sustainability evaluation and unequal Suppliers and management 2.2 assessment (GRI 414) programmes treatment along model 231 the supply chain. Supplier involvement • Failure to comply Supplier environmental in supply chain with environmental • Carbon Neutrality 2.2 assessment (GRI 308) Suppliers and carbon laws and Certifi cation neutrality regulations.

16 17