Unidata S p A : ESG Report (DNF) - EN

Sustainability-ESG

Report

Individual non-financial statement pursuant to Legislative

Decree No. 254/2016

Summary

LETTER TO STAKEHOLDERS ................................................................................................................................ 4

METHODOLOGICAL PREMISE ............................................................................................................................ 5

1. SUSTAINABILITY FOR UNIDATA ..................................................................................................................... 6

1.1 Unidata's approach .................................................................................................................................. 6

1.2 Unidata Benefit Company ....................................................................................................................... 7

1.3 Brand Reputation .................................................................................................................................... 8

1.4 The Stakeholders ................................................................................................................................... 10

1.5 The Sustainable Development Goals (SDGs) ......................................................................................... 10

1.6 The materiality analysis ......................................................................................................................... 11

2 SOCIETY AND GOVERNANCE ........................................................................................................................ 14

2.1 The History ............................................................................................................................................. 14

2.2 The Reference context .......................................................................................................................... 15

2.3 Corporate Governance .......................................................................................................................... 18

2.3.1 The Shareholders' Meeting ........................................................................................................ 19

2.3.2 The Board of Directors .................................................................................................................... 20

2.3.3 The Board of Auditors ..................................................................................................................... 21

2.3.4 The Management ....................................................................................................................... 22

2.4 Internal Control and Risk Management System .................................................................................... 22

2.4.1 The Supervisory Board ............................................................................................................... 23

2.4.2 The Code of Ethics .......................................................................................................................... 23

2.4.3 The Enterprise Risk Management .................................................................................................. 24

2.5 Economic performance and value distribution ..................................................................................... 31

2.6 Implementation of the Fibre Optic Network ......................................................................................... 35

2.6.1 Digitising of grey areas ................................................................................................................... 38

2.6.2 Fibre Network Security and Networking ........................................................................................ 39

2.6.3 The quality of the service ............................................................................................................... 39

2.7 Data Centre and Cloud Services development ...................................................................................... 41

2.7.1 Data Centre Security ....................................................................................................................... 43

2.8 Cybersecurity ......................................................................................................................................... 46

2.9 Customer focus ...................................................................................................................................... 48

2.9.1 From customer-oriented to customer-centric company ................................................................ 48

3 THE ENVIRONMENT ...................................................................................................................................... 49

3.1 The environmental protection approach .............................................................................................. 49

3.2 Compliance with environmental regulations ........................................................................................ 50

3.3 Unidata's initiatives for the environment ............................................................................................. 51

3.4 Energy Efficiency: Energy Consumption and Emissions ........................................................................ 53

3.4.1 Direct Greenhouse Gas Emissions SCOPE 1 .................................................................................... 54

3.4.2 Indirect Greenhouse Gas Emissions SCOPE 2 ........................................................................... 55

3.5 Environmental risks ............................................................................................................................... 55

3.6 Research, Development and ICT Solutions for Sustainable Development ............................................ 57

4. THE SOCIAL .................................................................................................................................................. 58

4.1 Social Sustainability Measures .............................................................................................................. 58

4.2 Social and Community Risks .................................................................................................................. 61

4.3 The Organisational Structure ................................................................................................................. 63

4.3.1 Staff Composition ........................................................................................................................... 64

4.3. 2Diversity and Equal Opportunities ........................................................................................... 65

4.3.3 Employment and Turnover ............................................................................................................. 65

4.3.4 Framing and Gender ....................................................................................................................... 66

4.3.5 Training and Development ............................................................................................................. 66

4.3.6 Health and Safety at Work ............................................................................................................. 67

4.4 The Supply Chain ................................................................................................................................... 68

4.5 Customer Satisfaction ............................................................................................................................ 70

Appendix 1 - GRI Standards ............................................................................................................................. 72

Appendix 2 - Index of Tables and Figures ........................................................................................................ 76

LETTER TO STAKEHOLDERS

Dear Shareholders and Stakeholders,

2022 was a year of important achievements for Unidata, albeit in a very uncertain context. With the most acute phase of the Covid-19 pandemic behind us, international tensions have put a strain on the economy, with direct repercussions on our priorities and the performance of stock markets worldwide.

Unidata entered its third year since listing, and in such an environment it was able to prove once again in this financial year that its customers and many investors appreciate it.

Once again, this year we have the privilege and good fortune to be able to present significant results, with positive and comforting numbers. The strategic importance of the sector in which Unidata has chosen to operate since the first diffusion of Internet use in our country, and the important and prudent investments made over the years and decades, continue to reward our choices over time.

Many are the initiatives that characterised 2022: from the transformation into a Benefit Company with a shareholders' resolution in spring 2022, to the signing of an investment agreement with the ESG fund managed by Azimut Libera Impresa for the creation of a large Green Data Centre in Rome. Unitirreno was set up for the cabling with submarine fibres for a 900 km section that will connect Mazara del Vallo to Genoa, with outlets to Rome-Fiumicino and Sardinia. We also confirmed and increased, with a general doubling of values, our commitment to the important fibre-optic infrastructural activity, with Fiber To The Home technology, of the so-called grey areas of Lazio and, in perspective, of Central Italy with Unifiber, established together with the international fund CEBF.

The acquisition of Milan Internet Provider TWT represents, as the first M&A transaction in our history, a fundamental step in the growth process that will continue, during the 2023 financial year, with the move from the Euronext Growth Milan market of Borsa Italiana to the regulated market and to its STAR Milan segment.

With this short letter, I have tried to show first the consistency of our path, which is well represented and pondered by the industrial plan approved at the end of November. We have always worked with the certainty that key objectives and targeted choices were the guarantees of success in the immediate as well as in the medium and long term, and we will continue to think so and to do so.

Thanking you for the trust you have placed in us again this year, I wish you good reading.

Renato Brunetti

President and CEO of Unidata

METHODOLOGICAL PREMISE

In line with the sustainability path undertaken in 2020, Unidata has prepared for the third consecutive year its Individual Non-Financial Statement (hereinafter also DNF or, informally, Sustainability Report), following Articles 3 and 7 of Legislative Decree 254/2016 implementing Directive 2014/95/EU (Non-Financial Reporting Directive), to ensure maximum transparency to the market and its stakeholders. This document refers to the non-financial information relevant to the financial year from 1 January 2022 to 31 December 2022. Data for previous years have been included for comparative purposes to provide an analysis of the company's business performance.

This document aims to offer a representation of the company's activities and results from a different perspective than the purely economic one, highlighting Unidata's concern for the environment, people, and the community.

Starting from the materiality matrix - a fundamental tool for Unidata that represents the overall view of internal and external stakeholders concerning the issues identified in the materiality analysis - this document analyses and highlights the E-S-G (Environment, Social, and Governance) areas and the impacts produced concerning the issues identified as material for Unidata.

In keeping with this premise, Unidata has based its non-financial reporting strategy on the following pillars to ensure an all-inclusive representation of the company's sustainability performance. (For more details see Table 3 - ESG risks on page 13)

• • ESG areas: each chapter of the DNF addresses each of the material issues associated with ESG areas, which are strongly linked to the Sustainable Development Goals (SDGs);

• • Non-financial risks: risks that are related to sustainability issues and considered material to society have been mapped out, as well as how these risks are managed;

• • Commitments: the SDGs, shared by Unidata, on which we believe we can make a greater contribution by defining long-term commitments, have been reported.

This report has been prepared by the GRI Standards (2016): Core option, of the Global Reporting Initiative. In line with the reporting practices described, a table including the topics analyzed about the topics defined by GRI can be found in the appendix of this document.

In consideration of the voluntary nature of the adoption of this DNF and since the size parameters outlined in Article 7 of Legislative Decree 254/16 were not exceeded, the Company decided not to subject this document to the attestation of conformity by an independent auditing firm.

The document was submitted to the examination, evaluation, and approval of the Board of Directors of Unidata S.p.A. on 14/03/2023, which declares that the information contained in this Individual Declaration of Non-Financial Nature complies with the provisions of Article 3 of Legislative Decree 254/16.