Impact Report 2024

Letter from the President

A year of shared goals and new horizons for the future

Dear collaborators, as we approach the end of this year, I feel the need to pause for a moment to reflect on the path we have shared and to express my sincerest gratitude.

Arca Etichette is not just a company: we are a community, a group of people who, day after day, work with passion, creativity and determination to achieve goals that go beyond profit. As a Benefit Society, certified B Corp, our commitment to sustainability, ethics and collective well-being is a fundamental part of our DNA. This year we have proven once again that it is possible to combine business excellence and social responsibility.

There are many achievements, and each of you has contributed in a unique and valuable way to achieving them:

• We have improved our production processes while reducing our environmental impact, confirming our leadership in an industry that looks to the future with care for the planet;

• We have developed new innovative solutions for our customers, strengthening our role as a trusted partner;

• And, above all, we have built a working environment where every person can feel valued and part of something great.

All this has been possible thanks to your commitment, your professionalism and your ability to collaborate. It is never easy to work in an environment that aims so high, but you prove every day that nothing is impossible when you move together, united by a common vision.

Looking to the future, new challenges and opportunities await us. We will continue to work to innovate, grow and make a difference, not only in our industry, but also in the community around us. In this journey, each of you will play a key role.

I wish you all the best in spending the coming holidays with your loved ones, recharging your batteries to face the New Year with enthusiasm. Thank you for everything you do every day to make Arca Etichette a reality of which we can be proud.

Happy Holidays and Happy New Year to you and your families.

With esteem and gratitude,

Riccardo Fadiga Chairman of the Board of Directors of Arca Etichette SpA

19 December 2024

1. Introduction

1.1 THE IMPACT REPORT

The Impact Report is the annual document that measures and presents to stakeholders the main results in impact generation achieved by Arca Etichette SpA.

It is essential for us to increase our transparency and officially communicate our impact to all stakeholders.

The structure

The first section of this document aims to tell who we are, what we do and what impact we strategically aim to achieve.

The second section forms the heart of the report, which is the reporting and evaluation of the impacts achieved during the year 2024 by pursuing our goals of common benefit.

The third section contains an evaluative summary of what has been done so far, with the data that have been considered for the analysis of the actions implemented by Arca Etichette SpA.

Finally, the fourth and final part addresses the future objectives that Arca Etichette SpA aims to achieve.

1.2 METHODOLOGY, TOOLS AND SCOPE OF ANALYSIS

The methodology used to assess the impact of Arca Etichette SpA's activities is based on an integrated approach, designed to ensure transparency and measurability, but also to initiate a continuous process of improvement. This allows us to analyse and understand how our actions contribute to the creation of sustainable value, both for our stakeholders and for society and the environment in general.

Through the implementation of the impact value chain, we have been able to analyse each stage of our activities, from the resources used to the benefits produced, in order to assess the impacts that Arca Etichette SpA intends to generate for the environment and people.

Resources - such as renewable energy, clean technologies and the skills of our team - are transformed into concrete actions, such as consumption reduction, responsible waste management and staff training. These activities produce measurable and tangible results, such as more efficient use of energy or improved technical skills, which in turn generate deeper and more lasting changes, both within our company and in the community in which we operate.

The objective of Arca Etichette SpA's impact assessment is not only to show the outside world what our high impact activities are, but also and above all to trigger a review process of our activities, capable of activating internal learning processes, in order to continuously improve our value proposition and create increasingly significant positive impacts.

The construction of the evaluation method involved the development of an impact value chain. We highlighted the relationships between the different activities and stakeholders identified as strategic and the outcomes for each of them. This procedure reflects the fact that the generation of common benefit is intentional in the value proposition promoted by Arca Etichette SpA.

Finally, for the evaluation of impacts and monitoring of the indicators developed, we based our analysis on quantitative and qualitative data, collected through the involvement of our internal stakeholders and the Choral and CliMax platforms. This approach allows us to constantly monitor progress in our priority areas and regularly compare notes to identify opportunities for improvement.

To ensure that our assessment is rigorous and reliable, we are also inspired by the United Nations Sustainable Development Goals (SDGs), which are a key guide to our commitment to a sustainable future.

Evaluation model

The evaluation standard adopted by Arca Etichette SpA was drafted in compliance with the Italian regulations on Benefit Societies, which require transparent and complete reporting of our impact. In particular Annex 4 cited in Art.1 paragraph 378 of the Law on Benefit Societies.

Specifically, the model is:

• articulated to provide a comprehensive and articulated assessment of the impact of the company and its actions in pursuit of its common benefit purposes;

• based on a standard constructed through a scientific and multidisciplinary approach;

• transparent as the most relevant information on it, such as criteria, tools and methodology used, is analysed within this impact report.

But our work does not stop there. Impact assessment is not just a time for reporting: it is an opportunity to reflect, learn and improve. Every piece of data collected and every piece of feedback received is a valuable tool for us to grow and refine our practices, continuing to build a solid, responsible and shared sustainability path.

With this methodology, Arca Etichette SpA aims not only to monitor its progress towards the goals of common benefit, but to turn every challenge into an opportunity for innovation and positive change. It is a constantly evolving process, which we are committed to pursuing with transparency, determination and openness to dialogue.

Analysis tools and scope

For the analysis of the impact areas of Arca Etichette SpA, we adopted an approach that combines the direct involvement of the main stakeholders - management and employees - and an in-depth assessment of the effects generated along the entire corporate value chain.

Two key tools for our analysis of impact areas were:

Impact value chain

We mapped the resources (inputs), the activities carried out thanks to them, the results produced (outputs) and the changes generated (outcomes), creating a logical chain that allows us to understand the relationship between our interventions and the desired impacts.

Carbon footprint aligned to the GHG Protocol

Calculation of the Scope 1, 2 and 3 emissions of Arca Etichette SpA through the CliMax platform, validated by the certification body RINA. As regards the calculation of Scope 3 emissions, we considered the following categories:

• 3.1 purchased goods and services

• 3.2 capital goods

• 3.3 purchased fuel and energy extraction, production and transportation activities

• 3.5 production waste

• 3.6 business travel

• 3.7 employee travel

• 3.9 downstream transport and distribution

1.3 WHO WE ARE

Since 1948, Arca Etichette has been a key player in the label printing industry, with a history of innovation and constant growth.

In the 1960s, we were among the pioneers of the self-adhesive revolution in Italy, a change that marked the beginning of a path of continuous development. In 1975, we broadened our scope by entering the market for labelling machines, now recognised as being at the cutting edge of technology worldwide. This expertise allows us to master both aspects of self-adhesive technology: materials and machines. With over 75 years of experience, our past is a solid foundation on which we build the future. We are committed to the constant improvement of products and processes: we use carefully selected materials tested in our laboratories, adopt modern printing technologies and invest in the continuous training of our staff.

The result is a range of state-of-the-art labels and sleeves, designed to guarantee high quality standards, compliance with technical specifications and maximum efficiency for the manufacturing industry. With an eye on innovation and sustainability, we continue to evolve to meet the needs of an ever-changing market.

Activities, value chain and sectors

Arca is an industrial group structured into two operating divisions, two subsidiaries and four production sites, with consolidated know-how in both the self-adhesive materials and labelling machinery sectors. Thanks to this dual competence, the company is able to offer complete and integrated solutions, responding to the needs of a constantly evolving market.

The Label Division of Arca Etichette SpA, with more than 75 years of experience, specialises in the design and production of self-adhesive labels for decoration, identification, promotion, security and special applications, guaranteeing state-ofthe-art solutions customised to customer requirements.

The Systems Division of Arca Etichette SpA develops innovative solutions for identification and labelling in the manufacturing industry, producing self-adhesive labelling machines and laser markers characterised by reliability, safety and productivity, with the aim of optimising customers' processes.

Arca Sleeves Srl is the company in the group dedicated exclusively to the production of shrink sleeve labels in any format and printing technology. Its offer includes guarantee seals, bi-packaging and promotional solutions, guaranteeing versatile and distinctive packaging for any type of product.

Etifix Srl, in business since 1987, specialises in the production of self-adhesive labels in roll and sheet form, standing out for its flexibility, speed and quality of service, adapting to the needs of different industries.

Arca Etichette operates through an advanced production process, which transforms self-adhesive material into finished labels through printing, finishing, die-cutting, inspection and cutting into rolls ready for application.

The supply chain mainly includes:

• manufacturers of self-adhesive materials and laminates;

• suppliers of inks and varnishes, to ensure aesthetics;

• production and inspection equipment and machinery.

Downstream of its supply chain, Arca Etichette operates in a B2B context, providing labelling solutions to highly regulated sectors such as pharmaceuticals, cosmetics, food and chemicals, as well as working with companies that need special labels to ensure anti-counterfeiting, protection from parallel markets and product safety.

Thanks to an integrated supply chain, technological innovation and a constant commitment to sustainability, Arca Etichette is a strategic partner for companies requiring advanced, reliable and sustainable identification solutions.

Our mission

The Arca Group’s mission reflects our commitment to upholding and strengthening our leadership in products and services, now accompanied by renewed efforts towards the environment, our people, the community, and the value chain.

We design and manufacture innovative labelling and identification products for the manufacturing industry: self-adhesive labels and sleeves for packaging decoration, promotion, safety, logistics, as well as high-performance automatic labelling machines, print-apply systems, laser markers, software for unattended printing, product validation, and traceability. Mastering every aspect of the discipline, we are able to deliver complete and reliable solutions.

We are a Benefit Corporation, committed to creating measurable economic and social value while safeguarding the environment. Our processes are designed to reduce energy consumption and resource waste, and we actively engage both suppliers and customers in joint environmental initiatives. We support projects that benefit our local community and promote a culture of sustainability in the region. We also encourage the cultural and professional development of our employees, aiming to ensure their personal fulfilment within a work environment that fosters creativity and promotes wellbeing for all who contribute to our mission.

The People of Arca Etichette SpA

Arca Etichette recognises that the company’s success relies on its people and their active engagement. For this reason, we foster a motivating work environment founded on professional development, wellbeing, and open communication.

As of 2024, the Arca Etichette workforce is composed as follows: All employees are based in Italy.

In addition to direct staff, Arca Etichette works with 12 non-employed workers, primarily ENASARCO sales agents and service centres. Throughout 2024, the number of non-employed workers remained unchanged.

The company employs a range of tools to ensure open dialogue and transparency with its employees. In 2024, an anonymous survey was launched to collect feedback on the work environment, management, personal development, and engagement in

ESG initiatives. This helped to identify strengths and areas for improvement, reinforcing the connection between the company and its team.

Thanks to this approach, in 2024 Arca Etichette received two important certifications from ChooseMyCompany:

• HappyIndex®AtWork, with an engagement score of 62.9 out of 100 and a participation rate of 56.8%;

• WeImpactIndex®, with an ESG impact score of 58.5 out of 100 and a participation rate of 56.8%.

To ensure an ethical working environment that meets the highest standards of responsibility, Arca Etichette has adopted a Whistleblowing Policy, allowing employees and stakeholders to report any irregularities in a secure and confidential manner. Through these initiatives, the company continues to strengthen its people-centred approach, promoting an inclusive, motivating, and increasingly sustainability-oriented workplace.

Corporate Structure and Governance

Arca Etichette S.p.A. has implemented a structured governance model designed to promote transparency and operational efficiency, ensuring a balance between strategic direction and the day-to-day management of operations.

The Board of Directors (BoD) is the company’s highest decision-making body and holds full powers for both ordinary and extraordinary administration. It is composed of four members, three of whom are executive and one non-executive:

Riccardo Fadiga, Chairman

Mauro Fadiga, Director

Adriano Porta, Director

Giampaolo Porta, Legal Representative

The composition of the Board reflects the company’s ownership structure, being made up exclusively of members of the shareholder families. The company’s governance is led by the Chairman of the Board, who is also the majority shareholder and General Manager of Arca Etichette S.p.A. He oversees both of the company’s operational divisions. Alongside him, a second board member serves as Operations Director of the Systems Division, while another member is responsible for Purchasing and Logistics Management within the same division.

Arca Etichette has also appointed a Sustainability Manager, nominated by the Board of Directors, with the task of coordinating and monitoring the implementation of corporate policies related to sustainable development.

To ensure continuous updating on ESG (Environmental, Social, Governance) issues, the Board participates in training and information sessions organised by the Sustainability Manager, thereby enhancing its expertise and strategic guidance capabilities in this area. Governance also extends to the Group’s two other companies:

• Arca Sleeves S.r.l., whose Board of Directors is composed of Chairman Giuseppe Gazzotti and Director Alessandro Walter Solcia;

• Etifix S.r.l., led by Chairman Girolamo Abeti Bonomelli, supported by Director Giovanni Porta.

Arca Etichette integrates its commitments to governance, sustainability, and corporate responsibility through a structured framework of policies and certifications that define and regulate its operational model.

To ensure an ethical and responsible approach to business, Arca Etichette has adopted a Code of Ethics, which outlines the company’s core values and guiding principles. This document reflects our dedication to a business model based on honesty, responsibility, and transparency. It establishes rules of conduct that apply not only to employees, but also to suppliers and collaborators. The Code of Ethics governs behaviours in relation to all stakeholders, ensuring that every relationship is marked by respect, fairness, and sustainability.

The Sustainability Manual defines the company’s ESG approach, exploring its actions in the areas of governance, workforce, environment, and community. The Environmental Policy, embedded within the Environmental Management System Manual, ensures a structured approach to environmental impact management and is supported by UNI ISO 14001 certification.

As evidence of its commitment to quality, safety, and sustainability, Arca Etichette has also obtained the following certifications:

ISO 9001, certifying compliance with quality standards in business processes;

ISO 45001, relating to the protection of health and safety at work;

B Corp, recognising the company as an economic player committed to a sustainable and inclusive business model;

EcoVadis, assessing sustainability performance across the entire value chain.

Through these tools, Arca Etichette S.p.A. is committed to maintaining an ethical, responsible, and continuously improving management model, reinforcing its role as a company focused on sustainability and innovation in line with international standards and best practices.

ISCC Plus

BRCGS Packaging

FSC Chain of Custody

Supervision and management of business impacts

Arca Etichette S.p.A. has placed sustainability at the heart of its governance, entrusting the Board of Directors with the responsibility to develop, approve, and update corporate strategies, policies, and objectives in line with the principles of a Benefit Corporation, a status acquired in 2021 to reinforce its commitment to creating shared value. The Chairman of the Board has played a key role in this transformation and oversees its implementation, delegating the operational coordination and reporting on compliance with the common benefit objectives outlined in the company’s Articles of Association to the Sustainability Manager. All company managers are actively involved in sustainable development projects, ensuring an integrated approach to managing impacts on the economy, people, and the environment.

The Board ensures systematic oversight of corporate impacts through a structured materiality analysis process, which enables the identification and continuous monitoring of the most relevant issues for the company and its stakeholders.

To ensure the effectiveness of internal processes, the Board periodically reviews the Impact Report, validating the results achieved and setting new targets, in addition to allocating the resources needed to implement further actions.

Operational management of corporate impacts is entrusted to Roberto Sala, the Sustainability Manager – a senior executive with long-standing experience at Arca Etichette S.p.A., certified by RINA/Federmanager. He is supported by Dr Serena Baroffio, who is also certified, and together they are responsible for supervising not

only Arca Etichette but also its subsidiaries, Arca Sleeves S.r.l. and Etifix S.r.l., ensuring a consistent approach to ESG impact management across the Group.

The Board receives updates at least once a year through a report presented by the Sustainability Manager, which is also shared with the Board of Statutory Auditors (Collegio Sindacale). During this review, both the Board and the Statutory Auditors evaluate corporate performance in managing environmental and social impacts, approving the results or requesting further input based on supporting documentation concerning stakeholder satisfaction, customer relations, certifications obtained, and measured environmental impacts.

Mitigation of negative impacts

Arca Etichette is committed to preventing, managing, and reducing negative impacts arising from its operations, with particular focus on environmental, production, and quality-related aspects. Guided by a continuous improvement approach, the company adopts advanced technological solutions, strict control procedures, and maintains ongoing dialogue with stakeholders to ensure maximum transparency and accountability.

As a graphic printing company, Arca Etichette is aware that its primary risk of negative impact concerns the use of chemical substances, with potential issues related to contamination, emissions, and disposal. For this reason, the company has for years been implementing and continuously enhancing strategies to minimise these risks, including:

• Complete elimination of solvents from printing processes (a solvent-free company);

• Increased use of digital printing, which reduces production waste and chemical usage;

• Ink and varnish polymerization using LED UV systems, which consume less than half the energy of traditional UV systems.

In 2024, Arca Etichette further strengthened its commitment: 100% of inks and varnishes used were solvent-free and entirely UV-curable. Moreover, over 80% of these products were formulated for compatibility with LED UV systems, thereby further reducing energy consumption. Also in 2024, the company progressively introduced low migration UV inks and varnishes, whi-

ch ensure minimal contamination risk – a critical factor for the pharmaceutical and food industries. To guarantee the highest standards of product quality and safety, Arca Etichette has developed a structured reporting and complaints management procedure (Procedure 0085), based on the PDCA cycle (Plan-DoCheck-Act).

The process includes:

4. Verification of the effectiveness of implemented solutions

This procedure is activated for every client notification, whether a formal complaint or a simple remark.

To reduce the risk of non-conformities, the company has implemented a high level of automation in its product inspection and control systems, particularly for pharmaceutical labelling, where safety is paramount. Arca Etichette also conducts systematic analyses of emissions, noise, and other environmental factors, aiming to minimise any negative impact on the surrounding area and local communities.

Arca Etichette actively involves its clients in reviewing and improving quality management procedures. Each client is entitled to audit the company and receives a detailed report for every single issue raised, along with regular summary reports. These data are then used in meetings and continuous improvement projects, aimed at optimising processes and strengthening collaboration.

The effectiveness of complaints mechanisms and other impact management procedures is monitored through a structured traceability system, which includes:

• Qualitative reports sent regularly to clients, containing root cause analyses, corrective and preventive actions taken, and signed by the Quality Assurance Manager;

• Active involvement of suppliers in problem analysis, both in response to customer reports and to address any issues identified in internal production processes.

Thanks to this approach, Arca Etichette ensures an integrated, transparent, and responsible management system, with the objective of minimising negative impacts and promoting an increasingly safe and sustainable production model.

1. Definition of the problem

3. Implementation of corrective and preventive actions

2. Root cause analysis

Memberships and associations

Arca Etichette actively participates in national and international association networks, collaborating with strategic partners to promote industry development, technological innovation, and environmental sustainability. Membership in these associations enables the company to stay up to date with regulatory and market developments, access specialised knowledge, and contribute to valuable industry-wide initiatives.

Industry associations and international networks

Arca Etichette is a member of:

FINAT, the leading international association for the labelling industry, offering companies strategic tools to innovate and grow in the sector. Membership provides access to market studies, best practices, and regulatory updates, closely monitoring European legislative developments such as PPWR and REACH. FINAT also promotes sustainability initiatives, carbon footprint reduction, and food labelling safety, fostering collaboration among businesses through events, workshops, and working groups.

Assolombarda, represents companies in the region, offering networking opportunities, regulatory updates, and support for business growth.

Concordia Labels, an international network of leading label manufacturers, of which Arca Etichette was a founding member in 1994. The network facilitates the exchange of experiences, technologies, and best practices, ensuring a continuous flow of know-how and benchmarking among members. It also acts as a purchasing consortium for materials and equipment, improving international market competitiveness and offering production backup in emergencies.

Unione Grafici, a key association for the printing and graphic sector, promoting skills sharing and professional development.

GIPEA (Italian Group of Self-Adhesive Label Producers): supports companies in the sector by providing ongoing assistance and updates on market trends, technological innovations, and both national and international regulations.

Innovation and sustainability projects

In addition to its membership in industry associations, Arca Etichette actively participates in HolyGrail 2.0, a European project aimed at improving recycling effectiveness through the use of digital watermarks on packaging. This technology allows waste-sorting systems to accurately identify materials and separate them correctly, thereby enhancing the quality of recyclates and supporting a more efficient circular economy. The project brings together over 2,500 companies and stakeholders from the packaging sector, working in synergy to achieve the EU's goals for sustainable waste management.

Participation in these associations enables Arca Etichette to:

• Access strategic information, industry research, and critical regulatory updates for the labelling sector;

• Engage in innovation and development projects, actively contributing to technological advancement in the industry;

• Strengthen its competitiveness through knowledge sharing, industrial collaborations, and benchmarking opportunities;

• Support environmental sustainability by contributing to circular economy initiatives and the responsible management of resources.

Through these partnerships, Arca Etichette reinforces its commitment to the sector, establishing itself as a responsible and innovative player in the printing and labelling supply chain.

Statement on sustainable development strategy

Dear Colleagues, our Chairman, Riccardo Fadiga, in his year-end address, recently expressed his gratitude for each of your contributions, which enabled the Arca Group to close 2024 with record production and profitability values—higher than the previous year and the best results in the last decade. He also shared a commitment to a new year filled with achievements, thanks to our collective dedication and professionalism, backed by shareholders ready to support new productive investments. These investments will help us improve product quality, design and production efficiency, working conditions, and environmental impact.

As the Sustainability Manager of the Group, I have shared with the Chairman—and now with all of you— some reflections on the challenges and opportunities we will face together in the coming year. We will continue to work to innovate, grow, and make a difference, not only within our sector but also in the wider community around us. In this journey, each of us has a key role to play.

In 2021, we legally became a Benefit Corporation, demonstrating our commitment to present and future sustainability by investing both our human capital— our most valuable resource—and financial resources.

Sustainability is both a goal and a tool: a strategy that allows us to differentiate ourselves from the competition and maintain leadership positions. Alongside our economic and financial solidity, and the quality of our products and services, we embrace an innovative vision—necessary to face the emerging challenges of today’s world and those yet to come.

We did not choose to “wait and see” whether the “sustainability trend” would pass quietly and with minimal cost. We chose to become active agents of the transformation underway. This path is now irreversible, just as the changes taking place in the social, environmental, and economic spheres are irreversible.

Our B Corp certification, achieved by the Arca Group in 2022, is evidence of our commitment and promotes a business model that seeks not only profit but also the wellbeing of people and the planet.

The top three revenue-generating clients of Arca Etichette are all Benefit Corporations, two of which are also certified B Corps. Their steadily growing annual reports show that it is indeed possible to combine business development with environmental and social progress.

More and more companies within our supply chain are embracing this business vision, which is shared by individuals, groups, and organisations who have a stake in the company’s activities and results: employees, collaborators, shareholders, suppliers, clients, the wider community, and the environment.

Companies that have voluntarily embraced this path and have been improving it for some time—including our Group—are also the most prepared to meet new European sustainability regulations.

Our clients increasingly wish—or are legally required— to revise supplier selection strategies based on ethical and sustainable behaviour. It is no longer sufficient to present certifications in quality, environment, and sa-

fety. It is now necessary to provide evidence that sustainability is embedded in corporate policy and management.

By August 2025, we are committed to renewing the Arca Group’s B Corp certification, which will then remain valid for another three years. Both the confirmation and improvement of our current score are expectations shared by all who rely on our companies—and upon whom we rely in return.

I remain available to anyone who wishes to further explore these topics, and I thank you all for your ongoing collaboration.

With kind regards,

Roberto Sala Sustainability Manager – Arca Group

2. The Impact

2.1 IMPACT STATEMENT - THE COMMON BENEFIT OBJECTIVES

Arca Etichette is not just a labelling and identification systems company: it is a responsible business that integrates innovation, quality, and sustainability to create shared value across the entire value chain. For over 75 years, we have faced the challenges of our industry with a vision rooted in continuous improvement, developing advanced and sustainable solutions for our clients while reducing the environmental impact of our operations.

In an industrial context defined by rapid technological evolution and growing environmental awareness, our responsibility extends far beyond product quality. Being a Benefit Corporation means combining economic growth with positive impact, adopting practices that ensure responsible resource management, emissions reduction, and the optimisation of the entire value chain. Our solvent-free approach, use of certified and recycled materials, and integration of more efficient, low-impact production processes are just some of the tangible actions we take every day to lessen our environmental footprint.

We look to the future with the understanding that every innovation must be sustainable—not only for us, but for the entire ecosystem in which we operate. Energy efficiency, the circular economy, and support for local communities are fundamental to our ongoing commitment. Participation in projects such as HolyGrail 2.0, collaboration with industry associations like GIPEA, FINAT, and Concordia Labels,

and our constant search for more advanced technological solutions enable us to contribute to a more sustainable and responsible labelling industry.

At the same time, we place great importance on people’s wellbeing—from our employees to our partners and the clients we collaborate with every day. We invest in continuous training, in the improvement of our working environment, and in initiatives that recognise talent and promote the active engagement of everyone in our business ecosystem.

Our journey is made up of intentional choices, innovation, and responsibility, driven by the belief that every improvement—even the smallest—can make a difference. At Arca Etichette, sustainability is not an option, but a daily commitment to building a business model that creates value for companies, people, and the environment.

The common benefit objectives (also referred to as impact areas) outlined here were jointly defined with our internal stakeholders.

The common benefit objectives

Climate action and energy transition

Arca Etichette is committed to reducing its environmental impact and supporting the energy transition by adopting next-generation machinery, using UV LED-curable inks, and sourcing renewable energy. The company aims to halve its emissions by 2030 and is actively working on converting its vehicle fleet to hybrid or electric models.

In addition, Arca Etichette participates in environmental projects such as tree planting, marine reforestation, and bee conservation, making a tangible contribution to the ecological transition and to the sustainability of the entire supply chain.

Waste management and circular economy

Arca Etichette promotes a circular economy model, reducing waste and optimising material recovery throughout the entire supply chain. The company invests in innovative solutions, such as silicone liner recycling, linerless labels, and the increasing use of certified, low-impact materials.

In addition, Arca Etichette uses solvent-free UV inks and varnishes, and takes part in recycling and waste traceability projects, actively contributing to the transition towards a more sustainable and responsible production system.

Employee wellbeing

Arca Etichette places employee wellbeing at the core of its operations, promoting a safe, inclusive, and stimulating work environment. The company invests in continuous training, flexible working arrangements, and initiatives for listening and engagement. It also provides health and safety benefits, financial support for employees in vulnerable situations, and team-building activities to strengthen company cohesion. These actions help to create a motivating workplace environment focused on professional development and growth.

Arca Etichette actively supports the local community, contributing to social, educational, and environmental initiatives. The company backs projects focused on inclusion and assistance, collaborates with schools to raise awareness about sustainability, and participates in programmes for the protection of cultural heritage in partnership with FAI (the Italian National Trust).

In addition, it promotes solidarity initiatives and offers support to families in need, reinforcing its commitment to having a positive and lasting social impact on the local area.

Arca Etichette integrates sustainability into its value chain, working with certified suppliers and promoting the use of low environmental impact materials. The company continuously monitors its supply chain, applying selection criteria based on sustainability and social responsibility.

It also takes part in innovation and traceability initiatives, enhancing process transparency and efficiency. This approach ensures a more ethical, competitive, and environmentally conscious production model throughout the entire supply chain.

Gli obiettivi di beneficio comune

Local community

Sustainability in the value chain

2.2 IMPACT VALUE CHAIN

The impact value chain provides a clear and logical representation of Arca Etichette S.p.A.’s impact strategy, mapping the connection between the needs of our stakeholders, the business activities undertaken, and the tangible effects these generate—contributing to a positive impact on both the environment and society.

This framework illustrates how deployed resources (inputs) are transformed into activities, generate immediate results (outputs), and lead to significant and lasting changes over the medium term (outcomes).

Through the impact value chain, Arca Etichette S.p.A. demonstrates how it intends to create added value, while also ensuring the measurability of the results achieved. This approach not only provides a transparent way to evaluate and communicate the benefits generated, but also serves as a solid foundation for continuous improvement and for promoting responsible innovation.

Ultimately, the impact value chain is a crucial tool for guiding our future actions, ensuring that they remain aligned with our sustainability goals and our responsibility towards the environment and society.

The Arca Etichette impact value chain was developed in alignment with the materiality analysis conducted in 2023, which was reaffirmed for 2024, thereby ensuring consistency between the company’s priorities and the expectations of its stakeholders.

Below is an association between the material topics and the corresponding impact areas:

Impact objective - “Climate action and energy transition”

Impact objective - “Local community” Impact objective - “Employee wellbeing” Impact objective - “Sustainability in the value chain”

2.3 THE BENEFICIARIES OF OUR IMPACT

Arca Etichette SpA has carefully identified both the direct and indirect beneficiaries of its impact, recognising that every action taken creates value for a wide range of internal and external stakeholders. Our sustainability and responsibility strategy is designed to generate tangible and lasting benefits, addressing the needs of people, communities, and the environment.

We believe that the value we create should be fairly distributed among all our stakeholders. Our vision is based on a business model that places dialogue, transparency, and collaboration at its core, acknowledging that only by working together can we address major challenges and build a more just and sustainable future. Arca Etichette SpA is committed to maximising its positive impact every day, by engaging and empowering all those who benefit from its actions.

In reflecting more deeply on the shared value we generate through our mission, we have identified the direct and indirect beneficiaries of our corporate impact objectives.

Direct beneficiaries: The term direct beneficiaries refers to those who directly benefit from the activities and the achievement of the impact objectives set by Arca Etichette.

Indirect beneficiaries: Indirect beneficiaries, on the other hand, are those who do not benefit directly from the outcomes of the activities, but who will nonetheless gain advantages from the achievement of Arca Etichette’s impact objectives.

3. Impact assessment

3.1 CLIMATE ACTION AND ENERGY TRANSITION

Related SDGs:

Arca Etichette has been committed for years to reducing its environmental impact, adopting targeted strategies focused on the energy transition and climate change mitigation. The company has achieved ISO 14001 certification, consolidating a structured environmental management system oriented towards continuous improvement.

A cornerstone of Arca Etichette’s environmental strategy is its commitment to being a solvent-free company, having completely eliminated organic solvents and water from its prepress and printing processes. Printing matrices, plates, and clichés are prepared using dry processes, while all inks used are UV-curable, avoiding the release of volatile organic compounds (VOCs) into the atmosphere. Since 2020, the gradual introduction of UV inks curable with UV LED lamps has further reduced ozone emissions from UV curing and significantly improved energy efficiency.

During the year, Arca Etichette reached a new milestone in production process innovation: 100% of the machinery and equipment currently in use is of the latest generation, resulting in a 10% reduction

in energy consumption and a 12% decrease in processing times compared to 2023. This achievement was made possible by the implementation of more efficient machinery, the progressive integration of digital printing, and UV LED curing technologies. Moreover, the Lean Manufacturing project launched in 2024 for four flexographic printing lines reduced start-up times by 10% and increased production yield by 20% (net product output per machine hour).

The company has also made significant advances in its energy transition, covering 100% of its energy needs with renewable sources since 2019, through a partnership with Lifegate. This decision has helped minimise Scope 2 emissions and significantly reduce environmental impact.

Corporate mobility is also undergoing a major transformation. In 2021, Arca Etichette began the gradual replacement of its vehicle fleet with Full Hybrid, Plug-in Hybrid, and Full Electric vehicles. By 2024, 73% of the fleet consisted of hybrid or electric vehicles, marking a 50% increase over the previous year. This initiative contributed to the reduction of Scope 1 emissions.

Beyond the adoption of sustainable technologies, Arca Etichette is actively involved in environmental protection projects. In 2024, the company participated in four key initiatives:

Tree planting (Treedom)

In 2024, we remain a partner in the European AIM HolyGrail 2.0 project, an initiative aimed at enabling a truly circular economy by revolutionising the way packaging is sorted in the waste management system (see following section).

The company continues to support tree planting initiatives, currently maintaining a corporate forest of 261 trees, contributing to CO₂ reduction, reforestation, biodiversity conservation, and benefits for entire communities (under the “Arca loves you” project). The most recent planting took place in December 2023.

Bee My Future project

Arca Etichette has renewed its commitment to the Bee My Future project for 2024, by sponsoring the maintenance of 14 beehives in an urban setting in the province of Milan, with the aim of protecting tens of thousands of bees. This initiative is made possible thanks to the work of a professional beekeeper, carefully selected by APAM (the Beekeepers' Association of the Province of Milan). Arca Etichette has committed to the “adoption” of an entire hive, providing the beekeeper with all necessary equipment to operate safely and efficiently, thus ensuring the wellbeing and prosperity of the bees.

Marine reforestation

Together with zeroCO2, Arca Etichette has contributed to the planting of 50 Posidonia oceanica plants in Golfo Aranci, Sardinia. This initiative supports CO₂ absorption, oxygen production, and the preservation of seabeds and a wide range of marine species.

AIM - HolyGrail 2.0 project

Arca Etichette is proud to have confirmed its EcoVadis certification in February 2025, recognising the company’s strong commitment to sustainability across environmental, social, and governance (ESG) domains.

EcoVadis, the world’s leading provider of corporate social responsibility assessments, has evaluated over 100,000 companies worldwide, assigning scores across four key areas: Environment, Labour & Human Rights, Ethics, and Sustainable Procurement.

Thanks to our path of continuous improvement, Arca Etichette has been awarded the Silver Medal, placing us in the top 15% of all companies assessed, and confirming our position as one of the most responsible players in our sector.

The EcoVadis certification is becoming an increasingly strategic tool for supplier selection, offering companies objective criteria for evaluating compliance with sustainability standards.

We are also proud to announce that Arca Etichette has been recognised as one of the “Winning Companies” in the Intesa Sanpaolo programme, which celebrates excellence among Italy’s small and medium-sized enterprises.

We were evaluated based on a set of indicators including contribution to GDP and social impact, investment in innovation and research, progress in digital and green transition, sustainability, internationalisation and export, generational transition and business consolidation, as well as commitment to employee training and welfare.

Sustainability was the central and most highly valued theme of the 2024 edition, with a focus on a selected group of 150 companies that have adopted ESG criteria, demonstrating strategic vision and respect for the ecosystemic impact on the territories and communities where they operate.

Arca Etichette stood out for its ability to foster an increasingly inclusive corporate culture, generate economic value, drive employment growth, and promote overall wellbeing for its people.

Through these tangible actions and the certifications obtained, Arca Etichette reinforces its role as a responsible actor in the ecological transition, demonstrating how innovation and sustainability can coexist within a cutting-edge industrial model with an increasingly reduced environmental impact.

GHG Emissions Reporting

Arca Etichette SpA has chosen to report its greenhouse gas (GHG) emissions in accordance with the GHG Protocol guidelines—a globally recognised standard widely adopted by companies and institutions to calculate and disclose GHG emissions. This decision is a fundamental step in understanding and managing the climate impact of our operations.

Emissions are classified into three main categories:

• Scope 1: Direct emissions from activities under the company’s operational control;

• Scope 2: Indirect emissions associated with purchased electricity;

• Scope 3: Indirect emissions generated throughout the company’s value chain.

Arca Etichette SpA has quantified its Scope 1 and Scope 2 emissions, as well as selected Scope 3 categories, to gain an initial overview of its climate impact, enabling the identification of critical areas and the development of effective strategies to mitigate environmental impact.

The primary objective of this analysis has been to raise awareness of our contribution to climate change and to highlight areas where performance can be improved. This commitment not only strengthens Arca Etichette SpA’s environmental responsibility, but also meets growing stakeholder expectations for greater transparency in climate-related matters. The GHG emissions inventory is therefore a key tool in aligning with international standards and contributing actively to global efforts to address and combat climate change.

For the calculation of our carbon footprint, we were supported by Up2You, and monitored the greenhouse gas emissions generated by our business activities. The total GHG emissions for 2024, broken down by Scope, are shown in the following table:

Scope 1 emissions

During the reporting period, the company generated a total of 211,76 tonnes of CO₂ equivalent from direct sources. These emissions were produced from the following sources:

Scope 2 emissions

Emissions under Scope 2 can be calculated using two different approaches:

Location based: this method uses an average emissions factor for electricity consumption, calculated based on the national energy mix of the country in which the company operates (Italy, in this case).

Market based: this method takes into account the amount of electricity purchased from renewable sources, provided it is certified by the GSE (Gestore dei Servizi Energetici) through the issuance of a Guarantee of Origin certificate.

The table below presents the results of Arca Etichette SpA's Scope 2 GHG emissions according to both approaches:

The difference in GHG emissions between the two calculation methods is due to the fact that 100% of the electricity supplied to the company comes from renewable sources. According to the market-based method, GHG emissions related to electricity consumption in 2024 are zero.

Scope 3 emissions

In this emissions reporting exercise, we have chosen to include within the calculation boundary seven Scope 3 categories deemed significant for our business model and the sector in which we operate.

During the reporting period, the company generated a total of 6,617.47 tonnes of CO₂ equivalent, arising from sources within the selected Scope 3 categories.

Below is a breakdown of the total Scope 3 emissions, distributed across the seven most relevant categories included in the calculation boundary:

The most impactful Scope 3 category for our type of business activity is purchased goods and services, which accounted for approximately 79.5% of our total quantified Scope 3 emissions in 2024.

Performance

• Human resources (employees and management)

• Financial resources (internal funding and bank financing)

• Technological resources (digital printers, machinery and UV LED lamps, EV charging stations)

• Use of 100% renewable electricity

• Use of UV LED technology and digital printing

• Hybrid and electric vehicles

• LEAN manufacturing

• Certifications and projects

Outputs

% reduction in energy consumption compared to 2023 due to the use of new generation machinery

12%

% reduction in processing times compared to 2023 due to the use of new generation machinery

50% 4

% increase in hybrid-electric fleet compared to 2023

Projects maintained in 2024 (HolyGrail 2.0, Treedom, Bee my future, marine reforestation)

• % reduction in energy consumption

• % reduction in processing times

• % increase in hybrid-electric fleet

• Continuation of ongoing projects

to 2023

Outcomes

100%

% reduction in market-based Scope 2 GHG emissions compared to 2023

3.2 WASTE MANAGEMENT AND CIRCULAR ECONOMY

Related SDGs:

Arca Etichette has consolidated its commitment to sustainable waste management and the promotion of circular economy strategies aimed at waste reduction, resource optimisation and the increasing use of certified and low environmental impact materials.

Digital printing and UV inks

A significant step towards a circular economy is the gradual replacement of traditional printing with digital printing, a technology that reduces material and ink waste by eliminating the need for plates or clichés. Furthermore, the process uses an average of just one UV lamp for curing inks and varnishes, compared to the five lamps required by traditional flexographic or lithographic/offset printing, contributing to lower energy consumption.

Arca Etichette stands out as a pioneer in the development of digital printing, having introduced this technology as early as 2005 with digital offset printing. Moreover, the company has initiated several research and development projects for digital UV inkjet printing since 2010. These investments led to the first large-scale implementation in 2017, followed by a second significant expansion in 2020.

Today, thanks to the adoption of state-of-the-art digital machines, orders produced with digital printing surpass those produced with analogue technologies. This results in a concrete environmental benefit, measurable in the reduction of material and ink waste, optimisation of energy consumption and more efficient production times. A further contribution in this direction is made by the Lean Manufacturing project launched in 2024, which has significantly reduced waste generated during printing setup.

At the same time, the company increased its use of UV inks and varnishes, purchasing a total of 19,467 kg of UV technical inks in 2024, compared to 14,404 kg in 2023, supporting a strong increase in productivity. In addition, 1,646 kg of digital inkjet inks were used, along with significant quantities of digital offset inks, whose usage rose by 19% following a 20% increase in digital production. A key aspect of digital offset printing is that ink consumption is directly proportional to the metres printed, enabling more precise resource management. In addition, all digital inks, whether UV inkjet or offset (HP Indigo), do not generate waste, as they are fully utilised in the printing process.

A further advantage of UV LED technology is the significantly longer life of the lamps, which can reach up to 20,000 hours of use, compared to the 1,0001,500 hours of mercury UV lamps. This not only reduces the need for replacement, but also enables more sustainable waste management, avoiding the disposal of consumables every six months and prolonging the life cycle of the equipment.

Linerless Labels

Arca Etichette is one of the few manufacturers in Europe to offer Striped Linerless labels, an innovative solution without a silicone-coated liner, ideal for the all-round decoration of tubs and trays. The absence of the liner reduces process waste and optimises production efficiency, with a significant reduction in machine downtime.

In 2024, the company produced 630,000 m² of linerless labels.

EFFICIENT

High productivity due to special roll layout

SUSTAINABLE

No liner to dispose of and zoned adhesive, only where it is needed to bond to the packaging

LOWER COSTS

No liner to dispose of, lower transport and storage costs

VISIBLE

More space for your texts and better visibility of shelf products

Arca Etichette’s Systems Division develops machines for the application of linerless roll labels.

In the field of logistics, these solutions make it possible to halve the number of rolls required for transport, storage and replacement on labelling machines, resulting in a reduction in roll change and downtime that is about one third of that required by traditional self-adhesive labels, with consequent energy savings.

LINERLESS

Liner free labeling system

CONVENTIONAL

Capability Pieces Per Minute

Daily working hours

Daily labels

Working days per year

Labels per year

Net Width, mm

Net Length, mm

Gross Length (step), mm

Reel outside diameter, mm

Roll development length, mm Thermal paper + glassine = 135 μ + 63 μ

Number of labels per reel Number of reels

Equivalent linerless thermal paper

Number of labels per reel

Number of reels per year to transport and stock

Number of stoppages/day

Number of stoppages/year

Minutes for reel change

Annual time for reel changing

Lost productivity in labels

Gross margin per product

Annual lost gross margin

Pieces Per Minute required

Pieces Per Hour required

Pieces Per Shift required

Label per reel

Number of stoppage

Minutes for reel change

Lost productivity in minutes

Lost productivity in labels

Real working minutes

Shift productivity in pieces

Per Hour (real average)

Per Minute (real average)

Direct laser marking systems

The Systems Division of Arca Etichette is increasingly involved in the design, in-house production and commercial development of direct laser marking systems, a cutting-edge technology that offers significant advantages in terms of sustainability and reduced environmental impact.

Laser marking, in fact, is performed directly on the product, completely eliminating the need for labels (adhesive, glue, sleeve, roll-fed, etc.) and thus guaranteeing a total saving in raw materials, both for the printed material and the support liner. Compared to other direct marking technologies, such as inkjet or thermal transfer, laser does not use inks or pigmented ribbons, thereby avoiding resource consumption and the problem of used containers disposal.

A further advantage of laser marking is its low energy consumption, which is significantly lower than traditional processes, and the fact that it can be powered by energy from renewable sources, contributing to a more efficient and low-impact production system. Light does not pollute, and laser technology represents the future of sustainable marking.

Use of “sustainable” materials

Arca Etichette favours the use of certified, low-impact raw materials, including recycled, bio-based, biodegradable and compostable materials, as well as FSC®-certified paper or paper derived from natural and plant fibres. Collaboration with local suppliers with the same environmental ethics guarantees a sustainable and responsible production process along the entire value chain.

For years, the company has been active in the selection and testing of self-adhesive or otherwise necessary label materials that are made available with less environmental impact throughout the life cycle of materials and their products:

Bio-based materials

• PE BIORENEW: composed of up to 98% ISCC-certified bio-based content, it reduces the carbon footprint and fossil fuel consumption while maintaining the same characteristics as virgin PE.

• MARBLE BASE / STONE PAPER: made from 80% stone powder (calcium carbonate) and 20% HDPE, it offers a natural “soft-touch” velvety surface, is waterproof and recyclable like plastic.

Materials from natural sources

• FSC®-certified papers and facestocks recycled from plant fibres, sugar cane and other natural materials, ideal for a handmade, sustainable look.

• Compostable and biodegradable materials, used in combination with certified adhesives to ensure complete product degradability.

Recycled materials

• Recycled vellum paper, facestock made of FSC®-certified paper containing 100% recycled fibre from post-consumer recycled waste and liner made of FSC®-certified paper with 15% recycled content.

• PE 100% recycled, which reduces resource consumption and keeps plastics in the material life cycle.

• PET with a minimum of 25% post-consumer waste, derived from recycled bottles.

• PP made from raw materials containing up to 100% post-consumer waste.

• CLEANFLAKE PORTFOLIO, which allows PET to be recycled from bottle to bottle, avoiding contamination and maximising the reusability of the plastic.

In recent years, thanks to its collaboration with an ever-increasing number of customers and suppliers, Arca Etichette has significantly increased its use of sustainable materials, strengthening its commitment to a circular economy. In line with this strategy, at the beginning of 2023 the company obtained ISCC PLUS certification, a voluntary standard that guarantees sustainability along the entire production chain through material monitoring, traceability and responsible resource management.

To ensure the transparency and reliability of its system, Arca Etichette adopts the MASS BALANCE model, which allows the flow of sustainable materials along the production process to be traced and certified. The company also implements a mass balance that is updated quarterly, monitoring the quantities of sustainable raw materials incoming, in stock and in certified outgoing products. This mechanism ensures that the content of circular material used is correctly balanced with that in the final products, guaranteeing a consistent approach to sustainability and the reduction of the environmental impact.

ming Arca Etichette's commitment to responsible resource management and the promotion of an increasingly sustainable production model.

Arca Etichette has included oceanic plastic in its product range: the world's first ISCC Plus-certified material for label production, created to combat plastic pollution of the oceans, while maintaining the same quality and performance as fossil-based films. This material is made from plastic waste that risks ending up in the ocean within 50km of coastlines where waste management is non-existent or inefficient.

In 2024, Arca Etichette achieved significant milestones in the sustainable management of raw materials:

• A total of 2,438,823 m² of labels produced from FSC®-certified materials;

• 33 ISCC-certified orders, amounting to 7,582 m² of labels made from sustainable plastic materials;

• 264,216 m² of labels produced from low-impact materials, including compostable, biodegradable and recycled solutions.

Material reduction

• THINKTHIN FILMS: they reduce CO₂ emissions due to thinner materials, improving operational efficiency and reducing downtime, storage and transport.

• LINERLESS: labels without silicone liner, which completely eliminate process waste and help reduce waste throughout the whole production chain.

The mass balance follows standardised rules and is subject to certification by a third party, confir-

Packaging

Arca Etichette integrates sustainability at every stage of its value chain, including packaging management. In line with Legislative Decree 116/2020, from 1st January 2023, the company will provide customers with transparent information on the composition and disposal of products and their packaging materials. For the Label Division, this information is accessible via dynamic QR-codes on packaging labels, while for the Systems Division it is available in the dedicated sections of the installation and user manuals.

A commitment to more sustainable packaging has led Arca Etichette to replace packaging materials with alternatives that have a lower environmental impact. The company uses FSC®-certified cardboard boxes, partially recycled polyethylene (PE) fillers, recycled PE stretch film and compostable PLA tapes, thus reducing the impact of material production and disposal.

A further step forward in sustainable logistics is the partnership with PALM Greenpallet, with which Arca Etichette has introduced a new eco-designed pallet made of PEFC and FSC® certified wood. The Greenpallet provides greater lightness, efficiency and safety in transport, while reducing the environmental footprint thanks to the sustainable management of the wood supply chain and the ability to store CO₂ in biomass. As of March 2023, the Greenpallet has become the standard for all supplies, replacing classic EPAL pallets and contributing to a more ethical and responsible supply chain.

The collaboration between Arca Etichette and PALM, both Benefit Corporations and B Corp, reinforces the value of a virtuous interdependence between companies that share the same ESG objectives. Each customised pallet bears the B Corp, PEFC and FOR50 labels, demonstrating the commitment to more sustainable logistics. The adoption of Heat Treatment (HT) for pallets destined for foreign markets also guarantees high standards of hygiene and safety.

Partnerships and projects

The company participates in several initiatives that aim precisely at proper waste management and the implementation of circular economy policies and practices.

Cycle4Green (C4G) Programme

The main waste in the self-adhesive label supply chain is the liner, the siliconised paper backing (glassine) of labels, which accounts for more than 60% of waste (38% of the volume of the entire initial roll).

Arca Etichette has signed a partnership with Cycle4green, a Finnish company specialising in the management of the siliconized liner recycling system. Our partner handles its collection on call and, using its own vehicles, transports it to Lenzing Papier in Austria, a paper mill capable of revalorising the liner by feeding it back into the production cycle. Production waste is sent for energy recovery instead of landfill disposal, although this entails significantly higher costs. Arca also sponsors the participation of its customers. In 2024 the company recycled 26.3 tonnes of liner, equivalent to a saving of 50 tonnes in CO₂ emissions.

AIM Project - HolyGrail 2.0

Also for 2024, we are a partner in the European AIM project HolyGrail 2.0, a European project aimed at improving packaging recycling. This is possible through advanced technologies based on digital watermarks that allow optical readers to analyse the characteristics of each product in fractions of a second, ensuring more efficient separation of materials and higher quality recyclates.

Once the packaging enters a waste sorting plant, the digital watermark is detected and decoded by a standard high-resolution camera on the sorting line, which - based on the detected attributes - is able to sort the packaging into the various processing streams. This would result in more accurate sorting lines, and consequently higher quality recyclates, benefiting the entire packaging value chain. Besides the creation of this “digital recycling passport”, digital watermarks can potentially be used in other areas, such as consumer engagement, supply chain visibility and retail activities.

HP Planet Partners

Since January 2024, Arca Etichette has been participating in HP's toner and cartridge recycling programme, an initiative to remanufacture original HP inks and toners into new products. This project helps minimising the waste of natural resources and reduce dependence on the extraction of raw materials, thus promoting a more sustainable circular economy model. By implementing these strategies and participating in programmes for the adoption of circular economy practices, the amount of waste sent to landfill has been reduced to zero, with 100% of waste going to waste-to-energy recovery.