2022 Sustainability Report

30 31 ENVIRONMENTAL RESPONSIBILITY 2022 Sustainability Report Location based: A methodology that considers an average emission factor (kg of CO2e emitted per kWh consumed) for the electricity consumed, calculated on the basis of the national energy mix for the country in which the company operates. The higher the share of energy from renewable energy sources within the national energy mix, the lower the value of the associated emission factor. Market based: an approach that allows the amount of energy from renewable sources purchased directly by the company to be taken into account. The source of this energy must be certified by the Gestore dei Servizi Energetici (GSE, energy services provider) by issuing a certificate of origin. In order to reduce atmospheric emissions, in addition to many of the measures described above, fully electric internal goods handling vehicles have been purchased or leased, whilst consideration is being given to upgrading the company car fleet to hybrid technology, as well as purchasing a fully electric van. In order to track the effectiveness of the actions implemented, we have decided to calculate the annual direct and indirect emissions from energy purchases (scope 1 and scope 2 according to the GHG Protocol), using both the “Location based” form, which reflects the average emission intensity of the networks on which energy consumption takes place, and the "Market based” form, which reflects the emissions of the electricity available on the market. In 2022 Direct emissions (Scope 1), related to natural gas, petrol and diesel consumption, totalled 265 tonnes CO2e, down from 2021. Indirect emissions (Scope 2), related to the consumption and purchase of electricity from the grid, decreased in 2022 compared to the previous year, both when calculated according to the Location based and Market based method, falling to 499 and 474 tonnes of CO2e respectively. Scope 1 (in 2022) 265 t CO2e Scope 2 (in 2022) Location based 499 t CO2e Scope 2 (in 2022) Market based 474 t CO2e NOTE: For the Location based method, emission factors were calculated using SimaPRO software and the latest available data on the “Composition of the initial national mix used for the generation of electricity fed into the Italian electricity system” provided by the GSE pursuant to the MSE decree of 31/7/2009. For the Market based method, the same software was used, but entering the “Composition of the energy mix used to generate the electricity sold by the company”, also provided by the GSE pursuant to the MSE decree of 31/7/2009. Emission intensity indices were calculated by taking direct and indirect emissions in tons of CO2e, calculated by both the location-based and market-based methods, and relating them to the total steel used in production. 2020 2021 2022 1,430,187 1,590,067 1,343,901 1,639,786 1,609,288 1,567,666 2,579,398 2,556,917 1,546,822 ENERGY (kWh) Electricity consumption Purchased electricity Fuel consumption (natural gas) CO2 EMISSIONS [tCO2e] 1000 600 800 400 200 2020 2021 2022 271.75 300.75 265.12 461.08 794.38 499.97 1200 0.09 0.09 0.1 0.17 0.16 0.27 732.83 1095.13 765.10 1000 600 800 400 200 2020 2021 2022 430.04 753.88 474.48 1200 0.09 0.09 0.1 0.16 0.14 0.25 701.79 1054.63 739.61 271.75 300.75 265.12 t t Scope 1 Scope 2 Location based Direct emissions (tCO2e/t) Indirect emissions Location based (tCO2e/t) Scope 2 Market based Indirect emissions Market based (tCO2e/t) Scope 1 Direct emissions (tCO2e/t) It can also be seen that over the three-year period, the value of CO2e emissions which are relevant to Scope 2 calculated using the Market based method are lower than those calculated using the Location based method. This change has been achieved thanks to the company's focus on this issue, i.e. the purchase of energy from a mix that contains a higher proportion of renewable energy than the average available in the country, as well as a share of self-generated energy from our own photovoltaic panels.

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