Ariston N : "ROAD TO 100" ESG PLAN

Road to 100

2030 Ariston Group ESG Plan

Road to 100

2030 Ariston Group ESG Plan

Find out more atwww.aristongroup.com

1

Index	Opening letter	4
		Ariston Group's ESG history	6
		Road to 100	10
	1. Solutions	Discussing Solutions with Mario Motta	14
		Scenario	16
		Commitments	18
		Sustainable energy solutions	18
		Smart homes for sustainable living	22
	2. Operations	Discussing Operations with Raquel Espada Martin	28
		Scenario	32
		Commitments	34
		Resources productivity and circularity	34
		Responsible supply chain	38

3. People &	with Marco Grazioli	42
	Discussing People & Communities
Communities	Scenario	46
	Commitments	48
	Excellent employee experience & engagement	48
	Education for the future	52

4. Customers	Discussing Customers with Claudio Raimondi	56
	Scenario	58
	Commitments	60
	Beyond customer proximity	60
	Trustworthy quality excellence	64
5. Governance	Discussing Governance with Patrizia Giangualano	68
	Scenario	72
	Commitments	74
	Long-sighted sustainable governance	74

Notes

80

2

3

Letter on

Road to 100

Ariston Group's ESG plan to 2030

Paolo Merloni

Executive chairman

Dear all - our people, our customers, our partners, our suppliers, and stakeholders and shareholders

As the Executive Chairman of a global group founded 93 years ago by my grandfather Aristide in Fabriano, a small village in central Italy dating back to Middle-Age, and approaching its 100th anniversary, I have been reflecting upon the pillars to orient, drive and sustain Ariston Group's pathway to 2030.

Certain to speak also on behalf of all Ariston Group's management and people, I have personally always felt a strong sense of responsibility towards society at large; hence, I do look at this upcoming remarkable milestone

• 100 years of Ariston Group - as the opportunity to reaffirm the role we want to play in shaping the economic, social and environmental future ecosystems we operate in.

Aristide Merloni, as far back as in 1967, affirmed that there is no value in the economic success of

any industrial initiative unless it is accompanied by a commitment to social progress. Such a visionary commitment towards our people and all the communities of our stakeholders duly accompanied us over our history. Nowadays, due to the tremendous impact that buildings' decarbonization will have on global emissions reduction, the thermal comfort industry is at the center of the energy transition; it becomes therefore ever more evident that delivering a better world to the future generations is a task that Ariston Group must master.

This is an ambitious goal, and we decided to address it systematically by linking the five Corporate Values that have accompanied us over last 15 years - Believe in Sustainability; Inspire through Excellence; Start from Customers; People come First; Act with Integrity - into specific, measurable ESG commitments that are deeply rooted in our Corporate Strategy.

Mitigating our impact on the environment is a challenge that we first of call start tackling from our Solutions, which account for the vast majority of our environmental footprint: our key commitment is to continue developing and bringing to the households of our customers renewable and high efficiency products and systems that leverage the most innovative technologies and are equipped with advanced connectivity features. In parallel, we are working to enhance resources productivity and to implement circularity into our Operations, also engaging responsibly with our supply chain.

The reduction of our emissions in Scopes 1, 2 and

3 remains at the core of our effort: by 2030 we commit to reducing Scope 1 and Scope 2 emissions by 42% in respect to 2021 and we set for ourselves the ambition to reduce by more than 50% our Scope 3 emissions from use of sold products per million euro of value added compared to 2021 baseline. In addition, we have stretched our ambitions to achieve the ultimate objective

of 100 million tons of CO2e emissions avoided by 2030 thanks to the type of products we sell in the regions we operate.

Our pledge to sustainability will go nonetheless much further than Solutions and Operations. Helping People to thrive, a customary commitment throughout Ariston Group's history, will be part of our ESG plan, extending it beyond our teams of colleagues worldwide to the local communities we are active in. In addition, we are determined to continue to excel in our mission to anticipate and exceed our Customers' needs by improving proximity and by delivering best-in-class quality.

To pursuing such extensive yet essential objectives urges to establish, nurture and defend a solid Governance framework. We have always considered transparency as a prerequisite value: our first Social Responsibility Report dates back to 1979. Since 2004 (17 years before our IPO in 2021) we established and progressively improved a governance that mirrored the best practices of listed companies and since 2018 we have been consolidating and reporting our non-financial performances, besides fiscal results. In 2020, we set-up an ESG Committee at Board of Directors' level as well as an ESG Council operating at the Group's Executive level to further increase our ESG focus and sharpen our capability to address the sustainability challenges. It is hence as a proud member of Ariston Group's ESG Committee, and once again speaking as well on behalf of my fellow Executive colleagues, that I can seal my letter to you affirming that sustainability, in its broadest sense, is one of the Ariston Group's founding pillars: it permeates our culture at all levels and roots in the way we do business, being inextricably linked with our capability to perform and succeed.

As our ESG commitment will continue to drive Ariston Group's future development, Road to 100 is intended to be our strategic manifesto, renewing our ambitions and projecting bridges to our future.

Sincerely,

4

5

Ariston Group's ESG History

How we got here and the path

towards our Centenary	This vision represents the engine of Aristide's socially focused decision to structure the
Company's production sites in the region with the following aims: ensuring proximity between
		the workplace and workers' homes, enriching less fortunate communities through industrial
		development and the densification of urban conglomerates and enhancing human engagement by
		limiting the number of employees per production facility. The commitment to guarantee a strong
The history of Ariston Group began in 1930, when		connection between Ariston Group and its local communities is further testified by the Aristide
Aristide Merloni founded in the Marche region,		Merloni Foundation, originally established in 1963 and still in operation today to support emerging
in central Italy, Industrie Merloni, a factory that produced		businesses in fostering employment and entrepreneurship, ultimately leading to economic and social
weighting scales. Over the years, the Company has		development. The Foundation became an economic and social research hub and, subsequently,
grown considerably through the organic opening of new		an established and highly regarded educational entity. Indeed, it is social progress that has, ever
markets and industrial sites across Eastern Europe,		since, guided the Company's strategy and growth. Immediately acknowledged, such commitment
Asia, Africa and the Middle East, as well as through		brought the Company to receiving the "Social Responsibility" award in 1974, sponsored by the
a strong inorganic expansion that has made the Group		Vision magazine and the PA consulting firm, a prize intended for businesses that could anticipate
one of the largest consolidating players in the sector.		and contribute to communities' needs, foster initiatives towards a progressive industrial ecosystem
It has a track record of 18 acquisitions including Atag		and improve relations with the surrounding environment.
and Heat Tech Geysers (2014) in Europe; NTI (2016),
HTP (2017) and Calorex (2019), which led to the		Another fundamental milestone in the Group's sustainable growth path dates back to January 25,
consolidation of the business in the North American		1979, when the Merloni Finanziaria S.p.A. (the initial name of the Company) became the first Italian
region; Chromagen (2021) focused on renewable water		company to disclose a Social Report. This publication marks a pivotal moment as, for the first time,
heating solutions with a leading position in Israel and		non-financial assets were also taken into consideration when assessing the value of a company.
a solid foothold in Australia; and Centrotech Climate		Since then, Ariston Group has set the course for non-financial reporting in Italy, whilst being at the
System (2022), in Germany, a pioneer in natural		forefront of this fast-evolving area of sustainability in Europe. The document included the reports
refrigerant heat pumps. Along its internationalisation		for 1975, 1976 and 1977 and was focused on both internal and external social aspects. Already
process, in November 2021, the Company was listed on		ahead of its time, it addressed topics which, today, play an increasingly more important role in
the Euronext Milan stock exchange, closing the biggest		terms of ESG reporting. In fact, in addition to the typical financial indicators, the Report included
IPO over three years. Rebranded as Ariston Group		some rather innovative social and environmental indicators that are listed below**.
since 2021, the Company is one of the global leaders
in the sustainable thermal comfort sector, with 5
representative offices in 42 countries, 25 production
sites and 25 R&D centres across 5 continents*.			Innovative Social and Environmental Indicators
This leadership position has always been accompanied		Financial indicators
by a far-sighted sustainability commitment, already		• Value-added and its breakdown	• Tax contribution	• Training initiatives
deeply rooted in the philosophy of its founder:
		• Number of employees	• Territorial improvement	• Safety and comfort (e.g. housing, canteen)
		• Foreign trade	• Regional development	• Environment (e.g. water consumption)
There is no value in the economic	• Relationship with suppliers	• Employment dynamics	• Applied research
• Technology balance sheet	• Employee characteristics
success of any industrial initiative,	• Productivity
unless it is accompanied by a
commitment to social progress.	* 2022 data

** Chapters of the Ariston Sustainability Report as published by the Battelle Institute in 1979.

6

7