Materiality

Analysis

​Process

The consumption of fossil fuels and electricity in its buildings and facilities, the combustion of fuel for the company fleet and the use of materials during production contribute to climate change caused by greenhouse gas emissions (Scope 1 and 2). In addition, the transport of company products by third parties, as well as the purchase of services, materials and finished products from suppliers, including their transport, entail greenhouse gas emissions caused by such suppliers during their production activities (Scope 3). Aware of these impacts, the Brembo Group is committed to pursuing the ambitious goal of achieving net zero emissions by 2040, supported by a defined roadmap designed to gradually reduce Scope 1, 2 and 3 greenhouse gas emissions. Brembo’s 
commitment to reducing greenhouse gas emissions also extends to end users through the use of innovative technologies in its products, which make it possible to limit the weight of brake systems and therefore to reduce GHG emissions.

The processes of extracting raw materials and manufacturing and painting brake components generate polluting emissions such as carbon monoxide (CO), nitrogen oxides (NOx), particulate matter (PM) and sulphur oxides (SOx), which may cause harm to the environment and human health. Thanks to the Environment and Energy Management System, Brembo has introduced requirements common to all the Group’s plants aimed at containing emissions well below the emission limits imposed by the legislation of the Countries in which it operates. In addition, thanks to the use of particular materials and innovative technical solutions, Brembo’s products permit a reduction of the polluting emissions caused by brake wear and tear during use.

Inefficient production processes not only use more energy to achieve the same result in production, but also contribute to reducing overall energy availability. This phenomenon accelerates fossil fuel consumption, exhausts energy resources more rapidly and increases greenhouse gas emissions. The environmental consequences of such inefficiency may be significant, resulting in higher energy costs and in economic penalisation for the Company. Faced with these challenges, Brembo is actively committed to seeking constant reduction of direct and indirect energy consumption. Through investments aimed at the adoption of the best available technologies in terms of energy efficiency, the Group aims to achieve the goals of its Sustainability Plan.

Excessive consumption of water in water-stressed areas threatens the regional hydrological balance and results in scarcity of water resources. Intensive industry — often inefficient – contributes to a reduction in water availability and degradation of water quality, with an impact on the environment and on the access to potable water. Aware of the importance of preserving this fundamental resource, as part of its Environment and Energy Management System Brembo has implemented a Water Management procedure that imposes requirements and restrictions on all the Group’s plants for sustainable use and protection against pollution. The Group has also set itself the goal of reaching 100% monitoring of flows (withdrawal, discharge and significant internal use) by 2025 at each of its sites in order to implement improvement actions.

Inadequate waste management by the Group could result in soil pollution, harm to natural resources and threats to biodiversity. In addition, a lack of attention to waste recycling/recovery and the consequent sending of waste to dumps could contribute to soil consumption. Brembo Group is dedicated to efficient waste management, avoiding generating negative impacts on the environment and actively seeking to reuse and develop waste materials. The Group has set itself the goal of increasing the percentage of waste to be recycled.

The extraction of primary raw materials may contribute to deforestation and environmental pollution. In addition, the surface extension of extraction sites, as well as the presence of buildings and plants, entail soil consumption, which may result in biodiversity loss. With regard to its plants, Brembo has identified a need to act in a way that contributes to maintaining and protecting biodiversity near its assets. The first step involved an analysis to define and apply a biodiversity screening methodology to the geographical areas in which its manufacturing plants are located. The second step will be defining any improvement, prevention and mitigation actions. 

The design, production and use of products aimed at reducing environmental impact throughout their life cycle involves minimising the use of natural resources, limiting greenhouse gas emissions and reducing waste generation. This entails the adoption of recyclable materials, the optimisation of production processes to reduce energy and greenhouse gas emissions and the promotion of ethical, socially responsible practices. The sustainability of such products is also manifest in their durability and ease of disposal or recycling at the end of their useful lives. Within the framework of this philosophy, Brembo integrates environmental performances into its products, developing braking systems with low particulate and CO2 emissions, while also enhancing the durability and recyclability of materials. Brembo’s commitment to reinforcing the development of innovative products, featuring environmentally sustainable, circular designs, translates concretely into promoting sustainable mobility through the reduction of polluting emissions thanks to its advanced braking systems and the Group’s commitment to subjecting all its products to a Life Cycle Assessment (LCA).

Brembo firmly believes that people must have equal access to work, facilities, services and programmes, solely on the basis of their knowledge, qualifications, expertise, performance and motivations, regardless of other personal conditions. In recognition of this responsibility, Brembo adopts an active, concrete policy in these areas, reflected in its Policy on Non Discrimination and Diversity, as well as in the Brembo Charter on Diversity, Equity and Inclusion. In particular, the Group is committed to promoting these aspects along the three main axes (gender, generation and cultural background) through concrete projects that contribute to the wellbeing of the Group’s people.

The protection of human rights requires policies and practices against exploitation and discrimination, both internally and throughout the value chain. Brembo, which is committed to respecting the rights of its workers, also extends this commitment to its suppliers, requiring that they abide by its Sustainable Procurement Policy in all Countries in which it operates. The Group pays attention to the direct purchase of minerals from conflict zones, asking its suppliers to declare the origin of Conflict Minerals in supplies intended for the Group. Moreover, the Group conducts audits to ensure respect for human rights among its suppliers.

Employment in the automotive industry exposes workers to potential risks and permanent harm due to the lack of adequate safety measures. This risk also extends to workers upstream and downstream the value chain, increasing the probability of serious physical injuries associated with work activities. In response to this problem, the Group has implemented an ISO 45001 management system at all its plants, in addition to promoting a culture of safety through its “I Am Safety” campaign in Italy and China. Throughout its supply chain, Brembo’s sustainability policy, included in its Sustainable Procurement Policy, sets specific requirements to ensure protection of health and safety in suppliers’ workplaces.

If the Group were not to ensure compliance with minimum wage and employee welfare, this would result in deterioration of the working conditions and well-being of its employees, entailing an increase in personnel turnover. Failure to monitor practices throughout the value chain could encourage incorrect behaviour, thus causing damages to third-party workers. In response to these challenges, the Group has intensified its vigilance over the job market, focusing on pay for critical roles and reinforcing its methods of monitoring outgoing personnel and voluntary resignations. In addition, it actively promotes employee health, not only through initiatives relating to the workplace, but also through programmes providing information on healthy lifestyles and courses on proper nutrition, such as the Brembo Wellness programme.

The implementation of policies and investments in employee training not only ensures the development of the Group’s resources, but also contributes significantly to increasing the innovative skills required to respond promptly to the demands of the business. Within this framework, Brembo adopts a specific procedure for effectively managing training and development offerings, designed to be increasingly global and inclusive, from the annual survey and analysis of training needs to attentive monitoring of quality indicators for the training provided. 

The implementation and application of digital security systems are absolutely essential to preventing the risk of data breaches and cyberattacks, which could have severe consequences, including privacy breaches and the loss of sensitive customer data. In order for the Group to manage such threats effectively, it is fundamental to adopt policies and advanced technologies that take a proactive approach to protecting digital data. The Brembo Group has thus set up a Privacy Supervisory Committee, and has introduced the position of Data Protection Officer and of specific Privacy Officers for each area of the company. These professionals operate in strict compliance with personal data protection legislation, following specific procedures to handle issues, obligations, new processing and reporting, while ensuring maximum security and regulatory compliance.

Product safety is a fundamental priority for ensuring that the design, manufacture and marketing of products adhere to strict safety standards. This commitment entails the implementation of robust quality control processes during production, active risk management and compliance with applicable legislation, in order to prevent accidents or damages arising from the use of products by consumers. This approach is crucial to preserving the company’s reputation, protecting consumers and complying with applicable safety legislation. Following a preventive and proactive approach, Brembo is committed to applying the voluntary technical standards that national and international standards bodies have developed to ensure the production of excellent products, while guaranteeing safety, quality and certain performance. In addition, through the use of innovative technologies, Brembo seeks to improve the performance of its braking systems, while continuing to offer its end users the utmost reliability and safety.

The presence of manufacturing plants and extraction sites disfigures the landscape, with adverse impacts, in visual and other terms, for local communities. The company’s commitment to the well-being of local communities translates into active management to protect the interests and health of people in the affected areas. At the same time, companies contribute to economic and social development, promoting job opportunities, developing local skills and taking an active part in community initiatives. Responsible relationship management is essential to consolidating trust and ensuring a positive impact. Brembo Group’s global presence offers a significant opportunity to improve external positive impacts through the transfer of investments, technology and skills. The Group actively promotes the growth of local ancillary industry, supporting infrastructure, jobs and training programmes and recognising the importance of fostering intellectual capital in its districts. It also makes its know how available, reinforcing its commitment to social responsibility and sustainable development in the surrounding communities.

Responsible, sustainable management of the supply chain focuses on an ethical, transparent approach respectful of human rights, social fairness and the environment. The Brembo Group asks all suppliers operating in Countries in which it is present with its plants to comply with the Sustainable Procurement Policy. This Policy concerns key issues, including respect for human rights, environmental protection, workplace safety, and prevention of corruption. In addition, verification programmes, audits, monitoring, training sessions and corrective measures are also implemented in cooperation with suppliers to ensure a sustainable supply chain aligned with high ethical standards and corporate responsibility.

Non-compliance with business best practices, such as unfair competition and a lack of reliable tax risk governance, control and management systems can cause damage to the economy and result in violation of laws and regulations. Insufficient supervision of company ethics and integrity could foster phenomena of corruption in tenders and supply contracts for both companies and individuals. Brembo has implemented various tools, including the Organisational, Management and Control Model (according to Legislative Decree No. 231/2001), the Anti-bribery Code of Conduct, the Supervisory Board and an entities’ administrative and criminal liability compliance programme in accordance with applicable local legislation of Countries where it operates through subsidiaries.