This document constitutes the second Sustainability Report of Remazel Group and aims to communicate in a transparent way the sustainability approach of Remazel Group (hereinafter also “Group” or “Remazel”) and its performance in the field of environmental, social and economic sustainability with respect to the 2022 fiscal year (from January 1st to December 31st).

This annual Sustainability Report was prepared by reporting a selection of the “GRI Sustainability Reporting Standards 2021” published by the Global Reporting Initiative (GRI) (hereinafter “GRI Standards”): GRI-referenced claim.
The detail of the reported indicators is shown in the “GRI Content Index”, which is presented in the last section of this document.

Remazel is a Group with more than 30 years of experience in the offshore industry and a strong expression of multiskilled engineering attitude.

Remazel Engineering S.p.A. was founded in 2010, following the merger between the companies Rema Engineering S.r.l. and Zambetti and Lumina S.r.l.

A genuine passion for engineering and challenges has led Remazel to become partner in major projects in the global offshore market, starting a new adventure in the world of renewable energy.

Nowadays, Remazel’s team believes in continuous improvement and strives for customer success every day, with the firm belief that we are all part of a much larger ambition: energy transition.

Remazel’s mantra is “thinking outside the box” and learning from mistakes. The lean approach is reflected in its own organization, in internal processes and in part of production activities.

Remazel Engineering is an Italian leading engineering Company which deals with the design and manufacturing of equipment for the offshore market – in particular for wind & floating wind, subsea & research, heavy lifting and Oil&Gas – as well as the production of hot gas path components in combustion sector with specific application on gas turbines.

REMAZEL DEDICATED AREAS ON THE QUAYSIDE

These areas include an office, the workshop, the external area for testing and assembly as well as direct access to the quay: this is a real asset integration which allows time and costs optimization on assembly, testing and delivery in particular for over-sized or Plug&Play Projects. The direct access to the sea represents an added value for Remazel business and allows to face the challenges of the future without limitations.

REMAC (Remazel Engineering and Cartubi Shipyard Joint Venture) is a manufacturing Company focused on machining, welding and assembly activities for naval constructions and over-sized steel works. The workshop covers an area of 2,500 square meters and an external sea-front area of 1,200 square meters. His location between Remazel Shipyard workshop and Cartubi is strategical for the complete manufacturing-assembly-testing process integration.

Remazel Asia has been established in 2018 in Shanghai (CN) to support Remazel Engineering business development in the Asiatic area. Today Remazel Asia has become a focal point for the Chinese market and supports Remazel activities both on sales and operational sides by maintaining and improving customers relationship network as well as scouting and monitoring the local Supply Chain.

SERVIÇOS DE SISTEMA OLEO & GAS LTDA

Remazel Do Brazil office was inaugurated in 2019 with the aim of organizing a spin-off of Remazel Engineering Service team: specialized technicians and a spare parts warehouse always available to meet the needs of customers on site. Today this branch is located in in Rio De Janeiro (BR) and works close to local customers.

Remazel Engineering, a leading Group in the design and manufacturing of equipment and components for the offshore and energy sectors.
We strive for supporting our customers in winning the challenges of the energy transition.

Customer centricity, teamwork, continuous improvement. This is our values winning mix.

Remazel covers the critical phases of the value chain of its Offshore BU, being fully accountable for the coordination and management of the entire process, which translates in high-quality solutions fully recognized by its customers. Since 2017 Remazel has deployed a “Lean Manufacturing” approach, ensuring the efficiency of the “Just-in-time” model and guaranteeing extremely short lead-time delivery.

The table below highlights the activities that Remazel promotes along the value chain and those that are outsourced instead.

Remazel’s engineering attitude deep its root in the expertise acquired over the years in providing Equipment designed and manufactured in compliance with the highest technical requirement and the harshest conditions related to the offshore environment and combustions temperature.

The engineering capabilities along with the manufacturing culture based in the industrial hub of northern Italy are the core of the activity, and has allowed Remazel to be flexible among the energy sector.

A lean approach on organization and processes makes the Group efficient and driven by time schedule and results.

The offshore experience both on engineering and manufacturing sides has opened the doors to energy solutions for: offshore wind & floating wind, offshore heavy lifting & special handling for oil & gas, subsea & research, cranes, and service as well as gas turbine combustion technologies.

Governance

The Remazel’s organizational structure is articulated according to the Traditional model of governance¹, with:

• The central presence of the Board of Directors in the Corporate Governance system;
• The entrusting of control and supervisory functions to the Board of Statutory Auditors;
• The assignment of accounting control responsibilities to the Audit Company.

Risk management

Remazel is strongly committed to safeguard corporate assets and financial reporting reliability while improving internal processes and maintaining compliance with regulations and Group companies’ procedures.

Remazel believes that an adequate risk assessment and management can positively affect the achievement of the objectives and the value of the Group.

Remazel is conscious of the need to ensure fair and transparent conditions along the conduct of business and related business activities, to protect its image and reputation, to satisfy the expectations of its stakeholders and the work of its employees.

In 2022, Remazel has decided to adapt to the provisions of the Decree 231/2001 (hereinafter the “Model 231”), starting a project of analysis of its organizational, management and control instruments, aimed at verifying the correspondence of the behavioral principles and the control principals already adopted to the aims foreseen by the Decree, by providing for the integration of the system currently existing if necessary.

The project aims to obtain an Organization, Management and Control Model appropriate to prevent the Commission of unlawful conduct by its directors, employees, and collaborators subject to management or supervision by Remazel.

The model, in conformity with the principles of the Code of Ethics, responds deeper to the requirements expressed by the Decree and is aimed at preventing the Commission of the criminal cases recomposed within the scope of the operation of Legislative Decree 231/2001.

According to Remazel’s business model, the supply chain is a key factor in the organization and success of the Group.

Remazel can rely on a strong network of suppliers, located mainly in Italy, although a major effort has been made in recent years in supplier selection and qualification in the Chinese area as well, to meet project requirements and address market changes and needs.

The acquisition of new contracts in the Offshore Wind have in a certain way redefined Remazel’s procurement strategy and localization, by strengthening the relationship with Companies based in North-Europe (i.e., UK, The Netherlands), but also with Chinese suppliers, in line with Customers and projects requirements.

Remazel Shipyard local unit has been then strategic for assembly, testing and delivery integration, by optimizing in some cases logistics solutions and costs. In this framework, REMAC Srl still remain a reference point for the production and management of specific steel works and manufacturing activities.

In 2022 the Procurement team has started a dedicated improvement path aimed at the enhancement of internal processes, which will be finalized in 2023 partly in response to the renewed approach to the customers.

Remazel’s engineering attitude has its roots in the experience gained over the years in supplying equipment designed and manufactured in accordance with the highest technical requirements and the hardest conditions related to the offshore environment and combustion temperatures.

The engineering capabilities and production culture based in the industrial hub of Northern Italy are the core of Remazel business and have allowed the Group to be flexible among the energy sectors.

A lean approach to organization and processes makes Remazel efficient and time/results oriented.

Remazel, aware of its role in sustainable development and as a provider of engineering solutions for the energy market, operates with the purpose of minimizing its impacts on the environment.

As required by current environmental regulations, the Group is committed to the proper waste management and disposal, aware that these activities have a significant impact in relation to public health. Remazel does not have any production processes that result in high amounts of waste or pollutants.

From the total waste generated in 2022, 99.95% is recycled (99.47% in 2021) with only a very small percentage of hazardous waste being sent to disposal.

Remazel is an engineering Group mainly focused on Energy and Offshore environments. Since its core business is the engineering phase, the R&D studies are essential to develop the Group main products and projects. Customization is also a central part of the R&D process with the aim to find the best solution for each project and to comply with technical requirements.

The R&D is managed in-house and in cooperation with few engineering companies located in North Italy and in the Netherlands. Thanks to this deep technical insight, Remazel has been able to develop new tools and equipment for the offshore wind, floating wind and subsea & research while contributing to the energy transition.

This is one of the pillars of our corporate values scale. Teamwork, respect, equality, passion are the ingredients of a sustainable future in our organization. We are engaged in promoting a healthy workplace and we take advantage from diversity by making «inclusivity» a competitive advantage for our Company.

Over the years, Remazel’s approach to human resources has undergone a profound renewal: digital disruption, the importance of a work-wellness balance, the need to promote a united organization that involves increasingly close collaboration with local institutions, universities and research centers became the pillars of the sustainable development of Remazel.

The Group is committed to keep itself a competitive and attractive place for bright talent through creatively thinking. To maintain a competitive and attractive environment, Remazel provides employees with an incentive rewards system.

In addition, these systems ensure continuous evaluation of competencies, assessment of performances and supervision on corporate objectives.

Diversity and inclusion are key values for which Remazel is working on increasing the presence of women in the Group and on aligning remuneration policies and financial rewards of all employees.

Moreover, in recent years the Group is investing in generational change, especially through the recruitment of newly graduated and the new positions called “Champions”. In 2022, employees under 30 years old account for 19%.

In 2022, Remazel continued its path of improvement, starting from changes occurred and looking at People’s needs with new eyes. Kaizen Institute’s support, in these activities, was invaluable and aimed at engaging people at different levels: engineering and design, project management, process, and organization.

Compared to 2021, the training attention in 2022 increased. Within the most relevant training initiatives, some were dedicated to ESG topics.
These modules took shape in 2022 through the first Sustainability Raising Awareness Workshop hosted and supported by the Innovation District Kilometro Rosso and ENEA, the Italian National Agency for New Technologies, Energy and Sustainable Economic Development.

Overall, the training hours provided during the year were doubled, from 1,179 hours of 2021 to 2,167 hours of 2022¹ (1,415 hours of mandatory training and 711 hours of voluntary training). Average hours of training increased from 10.8 of 2021 to 14.6 of 2022.

AVERAGE HOURS OF TRAINING BY PROFESSIONAL CATEGORY IN 2022

Remazel, over the years, has promoted a climate of well-being among employees, in line with the Group’s core values, People, Planet, Welfare and Governance.

All 146 employees of Remazel are covered by National Collective Bargaining Agreement (CCNL) Metalmeccanica Industria.

In addition, through AIG Europe SA, Remazel has stipulated:

• a package of supplementary insurance policies in favor of all its workers, office workers and managers for the coverage of risks inherent to business travel;
• “Bonus Baby”: Remazel decides to buy a Gift Card for the first baby of each employee in a dedicated baby shop;
• bonus for retirement: Remazel would like to thank employees who are going to retire with a dedicated travel gift card.

This strong interest pursued by Remazel on people development and well-being of employees has resulted in the implementation of a structured incentive system, with the aim to align the Group’s goals with those of its employees.

Career Plans
Eeach year, Remazel identifies a few employees who have distinguished themselves in exemplary ways for qualities and skills, and specific career plans are outlined for them.

The three-year plan provides a path of training and empowerment for those involved, hand in hand with an increase in salary and professional level.

Remazel is committed to pursue the goals of improving worker safety and health as a strategic commitment and an integral part of its business is to provide safe and healthy working conditions, prevent occupational injuries and illnesses, eliminate hazards and reduce risks in accordance with ISO 45001.

Workplace hazards and risk assessment are identified through a process called “Risk Assessment” that produces a Risk Assessment Document (DVR – “Documento di Valutazione dei Rischi”), in accordance with the requirements of current Italian legislation.

The assessment of risks and the identification of solutions to eliminate or reduce them to the minimum possible is carried out, as required by current legislation, by the Employer who makes use of the expertise of an expert professional appointed as Head of the Prevention and Protection Service (RSPP).

Remazel places great value on the impact it can generate, today and in the future, on local communities and surrounding area.

Remazel operates within a framework of fair competition with honesty, integrity, fairness, and good faith, respecting the legitimate interests of shareholders, employees, customers, business and financial partners, and the local communities and communities in which Remazel has a presence with its activities.

Specifically, Remazel promotes Social Responsibility – understood as the integration of social and environmental concerns within its strategic vision – by giving disclosure of what it has done through periodic reports.

To mitigate the negative impacts related to the inclusion of Remazel products in Oil&Gas applications and contribute to a responsible development, the Group started an energy transition path in early 2020, by transferring its engineering competences to new renewable sectors as Offshore Wind and Floating Wind.

Remazel’s equipment design and construction follow the international safety and quality standards. All the procedures, project execution documentation, reports, HSE and Quality plans are shared with the Customer during the project execution. Remazel provides also internal procedure referring to the quality of the product, health and safety.

The organization is committed to ensuring the protection of sensitive data of employees, customers, and suppliers to promote business continuity and safeguard the protection of its stakeholders. Remazel is committed to correctly manage the information it comes into possession of through the correct and conscious use of new technologies, to avoid any loss of data.

In both 2021 and 2022, there were no substantiated complaints about breaches of customer privacy and loss of customer data.

In 2022, the IT department implemented specific Cybersecurity training for all employees.

New employees, during the “onboarding” process, are also required to undergo the same training.

The IT department periodically runs “phishing attack simulations” to limit human risk. In case, Remazel manually detects a potential phishing attack, the IT department promptly informs all users (employees and external contractors) to pay attention.

All of these measures have yet to be implemented in a formal procedure (ongoing activities for 2023), and IT and Cybersecurity policies will be defined or updated by the end of 2023.