ESG / Sustainability Report / 2022 ESG / Sustainability Report / 2022 Materiality analysis GRI 3-1 3-2 3-3 Phase 2 - Assessment of the significance of the impacts identified in “Phase 1” From the analyses performed, 13 significant and moderate impacts (material) were identified, in addition to 5 that The materiality analysis was updated in relation to the 2022 reporting year, in line with what is set forth in are considered irrelevant for the Group, for a grand total of 18 impacts, broken down in turn between actual and the new GRI Standards 2021. It aims to identify the material topics, or those topics that represent the most potential, positive and negative, and belonging to the environmental, social and economic sphere, linked to the significant impacts that the organization has or could have on the economy, the environment and people, activities of Engineering and its value chain. This phase therefore involved an assessment of the significance including impacts on human rights.of impacts, identified on the basis of their severity for actual impacts and the combination of their severity and 5 probability of occurrence for potential impacts . The list of priority material topics that are representative of the Group was identified as a result of a process structured into multiple phases created based on a study of the context in which Engineering operates, aimed The table below summarizes the 18 impacts identified for Engineering, broken down between significant, at identifying the positive and negative impacts that concern it (actual) or which could concern it (potential) moderate and irrelevant; of which some potential and others actual. The 18 impacts also refer to the sphere in throughout its value chain.which they are categorized: environmental, social and governance. The main phases are described below:Some negative and potential impacts were classified as significant, due to the fact that they have the potential to entail regulatory non-compliance or a violation of human rights, which automatically increases their severity, Phase 1 - Identification of negative and positive, actual and potential impacts of the Group on the economy, making them subject to reporting, also considering the specific business of the Group and the laws to which it is environment and the social sphere, considering its value chainsubject. This analysis takes place by means of the following processes: Reporting and data • analysis of the main sector trends, reporting standards and sustainability ratings at international level;Phase 3 - Definition of the list of material topics • benchmarking of competing and comparable entities through the main public sustainability and social The positive and negative impacts identified as significant have been combined based on their relevance and responsibility documents;connected to the 10 material topics subject to reporting, set forth below: • Media analysis, collecting articles that address sustainability topics in relation to the Group, published by • Contribution to the sustainable development of customers and the modernization of the socioeconomic accredited publications and identified by means of the main search engines.system • Business compliance, ethics and integrity Following the above-mentioned external scenario study activities, the Group management (top positions) • Energy efficiency and climate change Reporting and datawas also involved through a questionnaire for the analysis and prioritization of topics deemed most impactful • Waste management in relation to the Company’s business and those that are most important for Stakeholders. In particular, the • Contribution to employment questionnaire was submitted to the following company officers: • Health, safety and well-being at work • Group Public Affairs and Corporate Communication Director• Human capital development and training • Group Chief Procurement and Strategic Sourcing Officer• Diversity and equal opportunity • Executive Vice President• Customer data security and privacy and cybersecurity • General Counsel• Initiatives in support of the community • Group Data Protection Officer • Group Chief Information Security OfficerThese impacts and material topics were associated with the relative specific GRI Standards, to be reported on in • Group Chief Audit Executivethe Sustainability Report in compliance with the methodology of the GRI Standards 2021. • Chief Financial Officer (CFO) • ESG Specialist • Chief Human Resources Officer (CHRO) • Group Industrial Relations, M&A, People Services, Payroll & Administration Director • Head of Health, Safety and Environment Service 5 For negative impacts, the severity is determined by: 1) Scale of severity, or how severe the impact is; 2) Scope, how widespread the impact is; 3) Irremediable character, how dicult it is to mitigate or compensate for the resulting damage. For positive impacts, the severity is determined only by the first two criteria already cited for the negative ones, or: scale of severity and scope of application. 108 Engineering © Engineering © 109