50 51 PROMOTERS OF CHANGE 2022 Sustainability Report and moulding of certain items), for which we share supporting documentation and carry out continuous monitoring. In the Quality Manual we reaffirm our commitment to encouraging suppliers to invest in quality issues, promote responsible practices and certify their activities against nationally and internationally recognised ESG standards. By sharing and signing the Code of Conduct for Suppliers, we formalise the principles and requirements which our commercial partners must comply with, particularly when it comes to compliance with human rights standards (including the core standards of the International Labour Organisation, the ILO), occupational health and safety, anti-corruption, competition and antitrust, environmental protection and goods safety. Business partners identified as "significant" according to the classification made by the Quality Manager for SA8000 purposes, in addition to signing the Code of Conduct required for all suppliers, are asked to perform a further self-assessment by means of a dedicated questionnaire, the results of which may lead to the suppler being approved or an improvement plan being put in place to resolve the non-conformities. For the procurement of strategic materials, such as raw materials, packaging, accessories and/or products to be marketed, the process also includes the sending a test sample that determines approval, i.e. authorisation to supply. We systematically monitor the list of suppliers and update it annually, including a specific evaluation that takes into account compliance with the contractual conditions and delivery schedules, the quality of supplies, and the results of questionnaires and audits conducted at the suppliers' premises. The intention is to add ESG aspects to the current assessment, in addition to those already included in the SA8000 Certification. With a view to generating shared value, we are committed to supporting our partners in their innovation processes and involving them in the company's strategies, generating mutual benefits and positive feedback from the suppliers themselves. Open innovation: broadening horizons to narrow the gap Supply chain We believe in the importance of developing ever closer and more fruitful synergies and collaborations with those who guarantee the reliability of production performance but who also share the company's values and expectations in terms of ethical, environmental and social standards. In a market characterised by increasing complexity, we have strengthened the analysis and management of procurement risk with a view to business continuity, and we maintain an active search for new structured suppliers, sensitive to sustainability issues and with similar brand values. Control of the supply chain is an issue which is rooted in the very history of our company, which has always chosen to use a selected pool of trusted suppliers. In particular, building robust partnerships with major European steel mills, which operate in a market with few competitors, is even more crucial for business development and proper risk management for the procurement of raw materials. Even for the production and maintenance of our machinery, we rely on established suppliers, who have gained an in-depth understanding of the company over the years, the materials used in production, and the critical issues associated with them. For the supply of non-core products and services, we use national suppliers whenever possible in order to benefit from logistical advantages, generate income and create job opportunities in the region. We also pay attention to commercial partners who we rely on for the implementation of specific processes (planning and design, communication, website management) and outsourcing (packaging of new suppliers assessed on environmental and social criteria 100% 2022 2021 2020 % of new suppliers assessed using environmental and social criteria 100% 100% 100% Number of suppliers assessed on environmental and social impacts 115 113 110 Number of suppliers found to have significant potential and current negative impacts 0 0 0 % of procurement budget spent on Italian suppliers 19% 21% 25% suppliers assessed on environmental and social impacts 115
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