L'Erbolario Impact Report 2024

Impact Report 2024

OUR NUMBERS page 3

LETTER FROM THE BERGAMASCHI FAMILY page 4

1. ABOUT US page 6

1.1 Our history page 7

1.2 The Group’s profile page 10

1.3 Business ethics and integrity page 16

1.4 Benefit Companies page 18

1.5 The aims of L’Erbolario SB and L’Erbolario

1.6 Stakeholders and the materiality analysis page

2. FOCUS ON QUALITY

2.1 An extremely short production chain

2.2 Natural and safe products for our consumers page

2.3 The quality of our products and attention consumer safety

2.4 Objective 1 – Natural beauty page

3. PROTECTION OF THE ENVIRONMENT AND NATURE

3.1 Our energy consumption and emissions page

3.2 Responsible management of our environmental

3.3 Protecting biodiversity and safeguarding

3.4 Objective 2 – Good for the planet

4.

PEOPLE page 65

4.1 Our workforce page 67

4.2 Well-being in the workplace page 74

4.3 Health and safety page 77

4.4 Training and development page 79

4.5 Objective 3 – Good for people page 82

L’Erbolario retail stores We are present in 45 countries worldwide

Consumption of electricity tonnes of CO2 Emissions Scope 1 tonnes of CO2 Emissions Scope 2 location-based

Total employees Women out of total employees Employees with open-ended contract of corruption of discrimination from 2022 to 2024 of non-compliance of training provided in 2024 employees under 30

In 2024, the L’Erbolario Group started a new chapter in its history, with a renewed commitment to sustainability and innovation. This year, we participated in a large number of initiatives aimed at strengthening our connection with nature and promoting the well-being of people, animals and the environment.

Our first two Impact Reports, published in 2023 and 2024 respectively, were created in response to the need to analyse the evolution of the two Benefit Companies, L’Erbolario SB Srl and L’Erbolario Franchising SB Srl, by measuring their performance according to the four benefit objectives set out in the company’s articles of association: Natural beauty, Good for the planet, Good for people, Good for the community. Taking stock of our achievements enables us to not only look back on our journey, but also to start planning for the future. With this publication, we are taking a further step forward as we look ahead to 2026, when we will be required to publish our Sustainability Report in accordance with the ESRS standard. The materiality impact analysis in the following chapters therefore demonstrates how we have begun to incorporate these new methodologies well in advance. One of the keys to our success is our ability to listen to and engage in dialogue with our customers, offering products that meet their needs and anticipate market trends. Our commitment to using the finest raw materials and our passion for attention to detail result in unique creations that celebrate the everlasting beauty of nature.

Here at the L’Erbolario Group, we are not only dedicated to achieving excellence in our field, but we are also actively involved in promoting an ethical and responsible corporate culture.

Letter from the Bergamaschi Family

Our core values – workplace safety, training for our Colleagues and respect for the environment – are the guiding principles behind every decision we make.

In today’s increasingly complex and challenging global economy, we reaffirm our commitment to continuing to adopt the pioneering approach to sustainability that we embraced more than 45 years ago. We aim to keep growing and making our mark in the beauty and natural wellness sector, while playing our part in creating a more sustainable future for all of us and for generations to come.

In presenting this document, we would like to thank all the people who work with dedication and passion alongside us in the L’Erbolario Group: our 500 Colleagues, Agents, Consultants, Retailers, Suppliers and all our loyal Customers. We could not have achieved these goals without their commitment. Guided by our values and our mission, we will continue to work together towards a more sustainable and responsible future.

Daniela Villa and Franco Bergamaschi

Founders of L’Erbolario

Giulia Bergamaschi and Luigi Bergamaschi

L’Erbolario’s second generation

1. About us

L’Erbolario SB Srl was founded in 1978 as a small artisan herbalist shop by a young couple, Daniela Villa and Franco Bergamaschi, who shared a passion for medicinal plants. In fact, during their youth, they spent much of their time searching for wild herbs in the fields of the Lodi countryside. The name “L’Erbolario” comes from the archaic word erborare, meaning to “go foraging” for herbs for study or therapeutic purposes. Thanks to positive word-of-mouth recommendations from their initial customers, their passion soon evolved into a successful business. As the company continued to grow, it moved to larger premises, where it combined traditional craftsmanship with modern technology. Inspired by the teachings of phytocosmetic pioneers such as Gianfranco Patri, Paolo Rovesti and Gianni Proserpio, they aimed to create excellent, safe and ethical natural cosmetics.

From the outset, L’Erbolario has promoted an ethical vision of cosmetics: it refuses to test on animals, strongly supports the battles of LAV (the Anti-Vivisection League) and, to this day, selects only cosmetic ingredients that fully

comply with the requirements of the international “Stop Animal Testing” standard. Furthermore, the company avoids marketing its products in countries that require animal testing, instead promoting natural beauty that respects people, animals and the environment.

Over the years, L’Erbolario has established itself as a leader in the Italian market for plant-derived cosmetics, while firmly maintaining its identity as a company that is 100% Made in Italy. The fact that its only premises are located within the Adda Sud Park in Lodi means that the supply chain is extremely short, which ensures maximum control over every stage of production and excellent value for money.

The company’s production facilities include the Extracts Laboratory, which develops more than 450 extracts and aromatic distilled waters that make L’Erbolario cosmetics unique, and the R&D Laboratory, which creates more than 40 new formulas each year. All products are rigorously tested for efficacy, safety and tolerability, with the content of eight heavy metals controlled to minimise the risk of allergy and protect even the most sensitive skin.

1.1 Our History

Over the years, L’Erbolario has made key decisions with a focus on sustainability and innovation. These values have shaped its evolution ever since 2002, when it became one of the first Italian cosmetics companies to implement an ISO 14001 Environmental Management System. The new Logistics Hub, which was designed without the use of gas-powered plants, was officially opened in 2012. Instead of using gas, the company installed geothermal probes, heat pumps and a 977 kWp solar farm, taking another step towards sustainable and innovative management practices.

In 2023, the company also expanded its solar farm to 1677 kWp, thereby reinforcing its commitment to renewable energy and to reducing greenhouse gas emissions.

In 2004, Franco Bergamaschi made the decision to broaden L’Erbolario’s expertise in the field of phytocosmetics by teaming up with Dr Fausto Mearelli, one of Italy’s leading experts in phytotherapy. This partnership led to the creation of Erbamea Srl, a company based in Umbria, in the green heart of Italy. Erbamea quickly made a name for itself in the field of food supplements, offering a range of products that combine the best of tradition and science. With over

including capsules, teas, as well as dried plant-based

In the same was established, L’Erbolario products. Designed them apart in a hallmark of

When Daniela Bergamaschi energy and innovation projects. with the company’s 2021 marked the three companies, group headed

At the same Franchising Srl the ethical environment companies.

Premiata Erboristeria

Artigiana L’Erbolario was established in Lodi’s old town centre in Corso Archinti 11.

L’Erbolario settled in its current location on Viale Milano, within the Adda Sud Park.

We created Iris, our most successful women’s range. our production chain, was inaugurated.

We set up L’Erbolario’s online shop.

1978 1994 2003 2006 2018

our first 45 years!

2004 2012 2023

L’Erbolario’s phytocosmetics range was expanded with the addition of phytotherapy products from Erbamea, our sister company based in Umbria.

The New Logistics Hub, a rare example of an energy-class B industrial building and the starting point of our products to the world, became operational.

L’Erbolario and L’Erbolario Franchising evolved into a Benefit Company 2021

4,800 physical retailers

Our presence worldwide

Ever since we opened our first shop in Sassari in 2004, we have grown to establish a presence in as many as 45 countries worldwide. With more than 4,800 physical retailers in Italy, our network now spans the entire country, ensuring that our products are widely available.

Meanwhile, the L’Erbolario brand has grown both domestically and internationally, and now has around 200 branded shops across Italy and abroad. Thanks to our catalogue of over 600 items, our brand has become a household name in Italy and around the world. With a range of products including perfumes, treatments, sunscreens, special products for children and home fragrance diffusers, we offer quality solutions that combine innovation, tradition and an ongoing commitment to sustainability and well-being. worldwide 200 domestic and international stores

in which they operate. The key to our success is our family business, which has evolved and restructured itself while staying true to its initial ethical values, combining craftsmanship and traditional knowledge with innovation and modernity.

Specifically, L’Erbolario Holding Srl is 100% owner of all the companies: L’Erbolario SB Srl, L’Erbolario Franchising SB Srl, Erbamea Srl and Luigia Immobiliare.

1.2 The Group’s profile

L’ERBOLARIO Holding srl

L’Erbolario Holding Srl is a company with a well-established, diversified corporate structure.

L’ERBOLARIO SB srl L’ERBOLARIO

Franchising SB srl

At the core of this structure is L’Erbolario SB Srl, the driving force behind the group, which is renowned for the production and marketing of natural cosmetic products. From its inception, this company has aimed to combine herbal tradition with scientific innovation. It offers an extensive range of body, face and hair care products, all of which meet consistently high quality standards.

In addition to L’Erbolario SB Srl, L’Erbolario Franchising SB Srl is responsible for managing and developing the network of branded shops, which are divided into direct and affiliated shops. With its solid and replicable business model, the company has successfully expanded its brand presence both nationally and internationally, achieving consistent and sustainable growth.

Luigia Immobiliare srl

Another cornerstone of the group is Luigia Immobiliare Srl, which is responsible for managing its real estate assets. This company is responsible for ensuring that all buildings used for production, commercial activities and administration are kept in optimal condition and meet the operational requirements of the other subsidiaries.

Last but not least, Erbamea Srl specialises in the production of food supplements and phytotherapy products.

With over 650 items in its product range, including supplements, medicinal herbs, food products such as herbal teas and sweets, as well as cosmetics, Erbamea provides a valuable addition to L’Erbolario’s offerings, combining beauty and wellness.

L’Erbolario SB has always operated with a very specific commitment: to respect and care for nature, turning its finest products into beauty recipes, while constantly striving to give back every gift received. This symbolises the harmony between humans and nature, and demonstrates our respect for the planet on which we live and the valuable resources it provides us with. It embodies the blend of herbal tradition and cosmetic innovation. These values lie at the heart of our corporate culture, enabling us to successfully navigate the challenges posed by a world that is becoming increasingly socially and environmentally conscious. This is why we are committed to improving our products and reshaping our strategy in a responsible way every day.

“

Respect and care for nature, turning its finest products into beauty recipes, while constantly striving to give back every gift received.

100% MADE IN ITALY

Our phytocosmetics are 100% made in Italy at our production site in Lodi, immersed in the greenery of the Adda Sud Natural Park. None of the production stages have been outsourced and our products are made in accordance with Good Manufacturing Practice guidelines.

EFFICACY AND SAFETY

We offer cosmetics of the highest quality at affordable prices.

Efficacy and safety are guaranteed by strict clinical trials supervised by the University of Pavia.

SELF-PRODUCED PLANT EXTRACTS

In our Extracts Lab we make more than 450 extracts and aromatic distilled waters, starting directly from the best plants and namely their organic version if possible. We therefore autonomously produce the ingredients that go into our cosmetics, which makes them unique.

FRIENDS OF ANIMALS

We have fought alongside the Anti-Vivisection League since the very beginning to obtain a ban on cosmetic testing on animals, which was finally achieved in 2004.

GOOD FOR THE PLANET

Since 2002, we have chosen to implement an Environmental Management System, committing ourselves to improving our environmental performance and saving energy. Since 2005, all the agricultural activities in our botanical garden have been certified as organic by the Institute for Ethical Environmental Certification (ICEA).

ENVIRONMENTALLY SUSTAINABLE PACKAGING

We are always looking for environmentally sustainable packaging: we select recycled or those obtained from renewable sources, such as sugar cane, and use only FSC paper material, supporting the responsible management of forest resources.

8 TESTED METALS

ENERGY FROM RENEWABLE SOURCES

We exclusively use electricity from renewable sources, largely self-generated by our 1677 kWp solar farm.

EXTREMELY SHORT PRODUCTION CHAIN

We have a short, extremely short production chain!

Each cosmetic product is formulated, made and packaged in Lodi and from there it is shipped directly to our customers to optimise costs and transport. We monitor the content of at least 8 heavy metals (Nickel, Lead, Arsenic, Cadmium, Mercury, Antimony, Chromium and Cobalt) to minimise allergy risks and safeguard sensitive skin.

BENEFIT COMPANY

Right since 1978 we have been advocates of ethical cosmetics designed around people, animals and the environment. In 2021, we became a Benefit Company, thereby confirming our commitment to directing our activities toward an increasingly sustainable, inclusive and transparent development model.

We have a solid governance system in place, based on rules, practices and procedures, to ensure the transparent, effective and accountable management of our business.

We have a solid governance system in place, based on rules, practices and procedures, to ensure the transparent, effective and accountable management of our business. We recognise the importance of robust governance in achieving both short- and long-term strategic objectives. To this end, we have adopted a traditional administration and control model, and are strongly committed to preventing corruption and ensuring compliance.

The Board of Directors (BoD) of L’Erbolario Holding is the highest decision-making body of the L’Erbolario Group, with full powers of ordinary and extraordinary administration. Appointed by the General Meeting of Shareholders in accordance with the articles of association, it is responsible for approving the organisational strategies proposed by management, with a particular focus on sustainability issues. The articles of association also allow for the appointment of one or more managing directors and set out their responsibilities and remuneration.

1.3 Business ethics and integrity

The company’s commitment to gender diversity is reflected in the current composition of the Board of Directors, which consists of four members, including two women and two men.

Franco Bergamaschi is the Chairman of the Board of Directors and as such is vested with the most extensive powers of ordinary and extraordinary administration. Daniela Villa holds the position of Managing Director, with support from two board members, Giulia Bergamaschi and Luigi Bergamaschi.

The Board of Directors

CHAIRMAN Franco Bergamaschi

MANAGING DIRECTOR

Daniela Villa

MEMBER OF THE BOARD Giulia Bergamaschi

MEMBER OF THE BOARD Luigi Bergamaschi

Special emphasis is placed on the management environmental, social and governance (ESG) impacts. This strategy aims to integrate sustainability into the corporate culture by identifying and material topics within the Board of Directors.

Department heads are responsible for the operational management of ESG impacts and reporting to top management on progress and any critical related to these topics. At present, the Board of Directors’ remuneration, including that of the Chairman, is not linked to the achievement of specific sustainability goals.

The Board of Auditors is responsible for ensuring compliance with the law and the articles of association. It also oversees the proper administration of the organisation, as well as the adequacy of its systems, internal controls and accounting management. This body currently has five full members, all of whom are male, and they will continue to serve until the 2026 Financial Statement is approved.

Collectively, these elements demonstrate our commitment to maintaining transparent, inclusive and

Benefit s.r.l. have set up a secure reporting channel for violations, including well-founded suspicions relating to infringements of national and EU regulations concerning either company. This channel ensures the anonymity and confidentiality of whistleblowers, as well as the confidentiality of report content, while safeguarding the privacy of any individuals involved. A separate report is produced for each company involved.

The Whistleblowing Reporting Officer is responsible for handling reports and operates outside of the company’s organisational structure. The officers are chosen based on how well they demonstrate autonomy,

issues in a timely manner, we have implemented a software platform that can be accessed from our official website, in the “Whistleblowing” section in the footer of each page. This tool ensures that data relating to the whistleblower, the individual involved and the content of the report is kept confidential and encrypted, making it visible only to authorised persons.

This strategy helps us build trust with our stakeholders and improve long-term sustainability, as it ensures critical issues are addressed promptly and effectively.

1.5 The aims of L’Erbolario SB and L’Erbolario Franchising SB

Researching and manufacturing products that meet customers’ needs, with the aim of offering affordable products of exceptional quality in the field of natural cosmetics and complying with the highest safety and functionality standards.

Researching and manufacturing products from plant-based raw materials in order to reduce the use of chemicals and encourage the responsible management of resources. We are committed to minimising the environmental impact of our products throughout their life cycle, while developing eco-friendly solutions to maximise our company’s positive impact.

Promoting an inclusive and safe working environment, allowing for both professional and personal development. We are committed to raising awareness of social justice issues by valuing women’s work and fostering a cohesive internal community that works towards shared goals. Our aim is to contribute to social and environmental regeneration, as well as economic well-being.

We are committed to building a prosperous and responsible ecosystem by interacting constantly with our stakeholders. We provide support to local organisations, associations and voluntary groups in order to boost the local economy and contribute to the prosperity of the Lodi area.

The Sustainable Development Goals (SDGs) are a set of 17 goals set out in the Global Agenda for Sustainable Development (2030 Agenda), approved in 2015 by 193 United Nations countries, including Italy. Initially conceived as guidelines for institutions, the SDGs are now also being adopted by many companies to provide a shared frame of reference for the social and environmental impacts of their activities. These goals enable organisations to clearly communicate the global challenges they are addressing, positioning them as positive forces that encourage regeneration.

In order to maximise the impact of our activities and effectively guide the actions of the L’Erbolario Group, we have selected the most relevant SDGs, focusing on areas where we can make a significant impact. This decision aligns with our corporate strategy and our unique competencies, as well as with the common benefit objectives we are aiming to achieve as a Benefit Company.

OBJECTIVE 1

Natural Beauty

Making beauty a quality commodity accessible to all

L’ERBOLARIO

At our company, we are committed to researching and creating products that meet our customers’ needs. Our aim is to provide affordable solutions without compromising on quality, and to ensure the highest standards of safety, functionality and excellence in natural cosmetics. We operate transparently and ethically by providing clear communication on the efficacy of our plantderived formulas and giving careful consideration to every aspect of the customer experience, which has always been at the heart of the company’s commitment and business decisions.

L’ERBOLARIO Franchising

We distribute products designed with our customers’ needs in mind. Our aim is to provide high-quality yet affordable solutions that meet the strictest safety and functionality standards in the natural cosmetics industry. Our communication is based on principles of transparency and ethical conduct, which clearly demonstrate the effectiveness of our cosmetic formulas. In addition, we always strive to provide each customer with a unique experience. This has been the guiding principle of everything we have done as a company since our inception.

GOAL 3

RELEVANT SDGs

In developing our formulas, we are inspired by the concept of global well-being, that is, involving people, animals and the planet. Our contribution to Goal 3 is made stronger by our commitment to create GMO- and microplastic-free products, monitoring through continuous testing the heavy metal content, which in our products is below legal limits.

GOAL 14

Our sunscreens with a protective factor do not contain Octinoxate and Oxybenzone filters, which are banned by the Hawaii Coral Treaty as they are considered to be the main culprits of coral bleaching.

OBJECTIVE 2

Good for the planet

Developing products by promoting the preservation and regeneration of fauna and flora

L’ERBOLARIO

Our dedication to researching and creating products derived from plant-based raw materials is driven by our commitment to reducing chemical usage and promoting responsible resource management. We are committed to reducing the environmental impact of our products throughout their life cycle. To this end, we study and promote sustainable solutions that maximise the company’s positive impact. We promote biodiversity protection and regeneration by caring for and cultivating native plant species, thereby encouraging a natural lifestyle that respects and protects our beautiful planet. Furthermore, we are determined to continuously develop our business model in order to align it with European climate neutrality goals and national ecological transition targets, with the ultimate aim of achieving a zero greenhouse gas economy.

L’ERBOLARIO Franchising

We are committed to promoting a more ethical and responsible culture through the messages we spread across all our areas of operation. Specifically, we embrace a natural lifestyle that respects and protects our beautiful planet. We distribute network of shops facilities, reflecting

GOAL 7

We are committed to promoting the use and availability of renewable energy through self-generation of photovoltaic energy, power supply through geothermal energy and the installation of electric vehicle charging points, as well as through the various energy efficiency actions.

GOAL 9

We pursue this goal through the various projects we implemented over the years in the area of production system efficiency, both in terms of energy (photovoltaic and geothermal power supply) and water (osmosis and recirculation systems), as well as automation and improved ergonomics for packaging lines.

GOAL 12

As well as optimising energy and water production, we contribute directly to this goal by designing alternative packaging options (e.g. Green PE and Green PET derived from sugar cane), using recycled materials (R-PET), as well as experimenting with refills and waterless products.

GOAL 13

With its participation in CO2alizione for Italy, the initiative aimed at accelerating the transition of companies towards climate neutrality, L’Erbolario has joined 89 companies that have decided to act together to institutionalise their climate action in their articles of association with the aim of creating the necessary conditions to tackle the climate crisis and contribute to achieving European targets. In doing so, we have given a clear mandate to current and future management to pursue, in addition to profit, the evolution towards a zeroemission economy. In this sense, our activity contributes directly to Goal 13.

GOAL 15

By enhancing our ancestral bond with nature, we have settled in the Adda Sud Natural Park where we manage a 20-hectare park. We contribute to promoting biodiversity through the recovery and protection of local flora and various activities to protect the land, banks and irrigation ditches from erosion. In 2023 we reconfirmed our commitment by adhering to the Park’s Trademark and we continued along this path with various initiatives in 2024 as well, thus continuing to contribute to Goal 15.

Good for people

Promoting well-being and a serene, pleasant and stimulating working environment with friendly and transparent relations

L’ERBOLARIO

and L’ERBOLARIO Franchising

We promote an inclusive and safe working environment, allowing for both professional and personal development. We are constantly striving to raise awareness of social justice issues, valuing women’s work, and fostering a cohesive internal community that is determined to evolve by working towards shared goals. Our mission is to promote social and environmental regeneration while pursuing economic well-being for all.

GOAL 8

We have always strived to create and maintain a working environment based on building positive and healthy relationships with an approach more typical of a family than a company. We pay attention to creating the conditions in which each employee can grow and achieve their full potential and personal satisfaction, as well as actively contribute to the achievement of the company’s common benefit objectives. Namely, we contribute directly to supporting everyone’s growth through training and the promotion of inclusive practices, a healthy and safe working environment for all workers, particularly women.

OBJECTIVE 4

Good for the community

Generate value and a positive impact for the local community

L’ERBOLARIO

We are committed to building a prosperous and responsible ecosystem by fostering continuous and constructive dialogue with our stakeholders. We support local, national and international bodies, associations and groups of volunteers. In addition, we promote the local economy by making the most of the natural resources in the area around Lodi, the place of origin L’Erbolario, so that we can give everyone the chance to appreciate the beauty of nature and understand just how important it is to preserve it.

L’ERBOLARIO Franchising

Our aim is to foster a prosperous and responsible ecosystem by engaging in constant dialogue with our stakeholders. We promote the local economy by creating employment opportunities across Italy, paying particular attention to social justice and the value of women’s work. We are also committed to acting as ambassadors for the protection of natural resources by influencing the communities in which we operate to become more environmentally conscious, so that everyone can experience the beauty of nature and understand the importance of preserving it.

GOAL 8

Our business has always contributed to the development of the area where we operate. Indeed, we refuse to relocate production activities in order to contribute to the prosperity of the local area. Our commitment aims to leave a positive mark on our local area and our community by creating relationships and partnerships with organisations and associations, donations of both money and products, and funding to organise cultural activities. As a result, our business contributes directly to the creation of decent jobs and conditions to try to separate economic growth from environmental degradation.

GOAL 17

Aware of the need to bring in everyone’s contribution to solve the big challenges we face, we are committed to promoting and supporting the activities of stakeholders in our communities to amplify our positive impact. We have a strong bond with our local area and we invest to support the creation of shared value in the community in which we operate in a broader sense, particularly in the area around Lodi, in Italy and worldwide. This is why we consistently promote and support various social responsibility initiatives in partnership with associations, organisations of volunteers and local, national and international philanthropic activities.

Press and media outlets

Employees and external collaborators

Suppliers

Board of Directors and corporate bodies

1.6 Stakeholders and the materiality analysis

End consumers

Retailers (franchisees and third-party distributors)

Certification bodies, legislators and communities

Research centres and universities

Trade and industry associations

The materiality analysis

The Group conducted a materiality analysis to identify the topics on which the company’s activities have the biggest environmental and social impact.

The list of material topics was defined by considering the following types of impact: actual and potential impacts, where actual impacts refer to impacts that

have already occurred, while potential impacts concern situations that may happen in the future but have not yet occurred; negative and positive impacts, with negative impacts causing harm to individuals, communities and the environment, undermining sustainable development, while positive impacts contribute to its progress.

Once the topics were identified, they were analysed and evaluated according to their importance, considering the Group’s entire value chain, thus including not only direct activities, but also the upstream and downstream activities mapped in the chart below:

A list of the material topics that reflect the positive and negative sustainability impacts associated with the Group’s value chain is provided in the following table. The size of the icons in the value chain columns indicates the level of impact on each stage:

TOPIC MATERIAL TOPIC

ENVIRONMENT

Climate change and Energy

IMPACT

Contribution to climate change caused by greenhouse gas emissions

The company’s greenhouse gas emissions come from the production and transport of raw materials, the manufacture of cosmetics, office energy consumption, and the distribution of products to franchisees. The consumption of energy by franchisees results in additional emissions, as does the use of products by customers.

The L’Erbolario Group is committed to reducing its environmental impact through the use of renewable energy sources at its production site, including the self-production of electricity from photovoltaic panels. The Group also purchases certified energy when necessary.

Pollution of soil, groundwater and surface water due to improper storage and/or use of chemicals

Soil and water pollution

Soil and water pollution

If L’Erbolario and its suppliers opt to use chemicals in the production of perfumes and phytocosmetics, this could have a negative impact on the environment. If not stored or used correctly, pollutants could be released into the soil, groundwater and surface water.

L’Erbolario regularly carries out checks and implements strict internal procedures and certified management systems to monitor the use and release of chemicals.

Pollution of surface water caused by the release of chemicals after the product has been used

Using L’Erbolario cleansers and cosmetics may result in the release of chemicals, such as surfactants, into drainage systems. If these substances are not treated properly at water treatment plants, they can end up in rivers, lakes and the sea, thereby altering the aquatic ecosystem.

L’Erbolario carries out rigorous quality control checks and regular monitoring to ensure that its products are both safe and biodegradable.

Contribution to water scarcity

Consumption of water resources

Significant amounts of water are required for all activities involved in the cultivation of raw materials, the production of packaging and phytocosmetic products, and their subsequent use by consumers. Using this resource unsustainably could reduce local water reserves and affect surrounding ecosystems.

L’Erbolario constantly monitors its water consumption during production processes and has developed several product lines designed to reduce water usage, even during product use (waterless products).

TOPIC MATERIAL TOPIC

Land use

IMPACT

Loss of biodiversity in relation to the use of land for agricultural purposes

The cultivation of the raw materials used to make L’Erbolario products, such as herbs and fruit, can have an impact on natural ecosystems. Converting natural areas into agricultural land, along with deforestation and intensive soil use, can reduce soil fertility and compromise biodiversity.

L’Erbolario takes great care when purchasing raw materials by actively promoting responsible agricultural practices that help to preserve ecosystem balance.

Exploitation of non-renewable natural resources

Raw material management

Waste management

Using non-renewable raw materials to produce L’Erbolario cosmetics can affect their future availability. As these resources are limited, their unsustainable use could accelerate their depletion, which would have significant environmental impacts.

L’Erbolario strives to find sustainable alternatives and makes the most of the resources it uses to reduce its environmental impact.

Contribution to air and soil pollution, as well as soil exploitation, due to the production of non-recyclable waste

If not managed correctly, waste generated along the supply chain and during L’Erbolario’s direct activities can have a negative impact on the environment. Some of this waste may contain chemicals that could contaminate the soil and alter ecosystems if disposed of improperly. Additionally, the build-up of nonbiodegradable materials leads to soil depletion and puts pressure on natural resources.

L’Erbolario has strict internal procedures in place for waste management and disposal, ensuring full compliance with current legislation.

Contribution to air and soil pollution, as well as soil exploitation, due to insufficient recycling of end-of-life products

If insufficient quantities of L’Erbolario’s end-of-life products, especially packaging, are recycled, this may result in air and soil pollution, as well as putting pressure on natural resources. If packaging materials are not sent for recycling, but are instead handled improperly, they can lead to the build-up of non-biodegradable waste and increase contamination.

To minimise this impact, L’Erbolario products are designed to be easily recyclable, for example through the use of single-material packaging.

Enhancing and protecting biodiversity

Biodiversity

L’Erbolario takes an active role in protecting the biodiversity of the Lodi area by implementing sustainable practices, such as planting perennial trees and shrubs in the L’Erbolario Park, and by participating in initiatives aimed at protecting natural ecosystems. In addition, by collaborating with conservation bodies and projects, L’Erbolario helps to protect endangered plant and animal species and promote the regeneration of natural habitats.

TOPIC MATERIAL TOPIC

Workers’ health and safety

IMPACT

Negative effects on workers’ health and safety

Anyone involved in work activities at any point in the value chain may be at risk of injury. This includes both upstream and downstream workers, as well as L’Erbolario employees. These risks may be associated with the use of chemicals, operating complex machinery, handling potentially harmful materials and heavy packaging.

L’Erbolario implements the strictest safety measures to protect the health and well-being of its employees, ensuring safe and secure working environments.

Human rights violations due to inadequate working conditions

SOCIAL

Workers’ rights

Diversity and equal opportunities

Companies such as L’Erbolario may be exposed to the risk of human rights violations, including child or forced labour, restrictions on workers’ freedom of association and inadequate working conditions, which could result in abuse or disputes. Additionally, operating in countries with less stringent regulations can encourage unethical labour practices in specific stages of the value chain.

L’Erbolario is committed to complying with international human rights law and to promoting responsible work practices that respect the rights of all individuals.

Failure to ensure diversity and equal opportunities in the workplace

A work environment that does not promote inclusiveness, respect diversity, or offer equal opportunities can lead to discrimination, resulting in wage disparities and obstacles to professional development. Discriminatory practices of this kind hinder workers’ personal and professional development and violate their right to dignity.

L’Erbolario is committed to ensuring gender equality and fostering an inclusive workplace that fully respects the human rights of all its employees.

Negative effects on workers’ health

Consumer health and safety

Without adequate control and monitoring procedures in place, products that do not meet the required quality, health and safety standards may be sold, thereby putting consumers’ health at risk.

All L’Erbolario products undergo strict quality and safety checks to ensure that each item meets the high standards required for protecting consumer health.

POTENTIAL

POTENTIAL

POTENTIAL

POTENTIAL

TOPIC MATERIAL TOPIC IMPACT

Failure to protect the privacy and security of the personal data of employees and consumers

SOCIAL Privacy

L’Erbolario collects consumers’ personal data when they register on the website, when sensitive information is involved in preparing shipments, and when loyalty cards are used. The company also holds sensitive data on its employees, including information about their health, trade union membership and religious beliefs. The company could be vulnerable to cyberattacks that threaten the privacy of its employees and consumers, putting them at risk of financial and reputational damage resulting from the loss of sensitive data. L’Erbolario has adopted stateof-the-art security measures to protect information and ensure the privacy of all individuals.

Improving employees’ skills

Employee training and development

SPECIFIC Relationship with local communities

L’Erbolario supports the professional development of its employees, retailers and external collaborators by offering training courses designed to enhance and strengthen their skills. The company has launched the “L’Erbolario Academy’ training programme for purchasing consultants, retailers, in-house staff and agents.

Developing

and protecting communities and the local area

L’Erbolario actively contributes to the economic, social and cultural development of the communities in which it operates. It creates employment opportunities and builds strong business relationships, also by collaborating with local, national and international organisations, associations and groups of volunteers. This commitment is also reflected in the organisation of events and initiatives that enhance the customer experience and strengthen the connection to the local area and its residents. L’Erbolario is a well-known supporter of trade associations and regularly donates to charities, demonstrating its ongoing commitment to collective well-being and to supporting the people who benefit from its products.

The identified topics align with the commitments we made in relation to the objectives set out in our articles of association and will guide our sustainable development plan in the years to come.

The Management of L’Erbolario has approved the list of material topics, which is not in order of priority. The “Methodological Note” provides a detailed description of the process used to identify impacts.

2.

Focus on quality

2.1 An extremely short production chain

The L’Erbolario Group’s commitment to quality and sustainability is evident throughout the production process at L’Erbolario SB Srl.

It all starts at our sole facility in Lodi, which is located within the lush greenery of the Adda Sud Park. Every stage of the manufacturing process takes place within walking distance, enabling constant and direct monitoring. Thanks to our extremely short “field-to-pot” supply chain, we are able to rigorously control the quality of our products and offer our customers excellent value for money.

At our production site, we oversee every stage of the manufacturing process, from formulating the cosmetics and producing the semi-finished products to packaging and dispatching the finished products. When it comes to procuring raw materials, we primarily rely on our own botanical garden, where we cultivate a large variety of organic herbs that thrive in our climate, such as mint, rosemary, sage, lavender and wormwood, as well as vegetables, fruits and flowers. Our raw materials are also sourced from Erbamea, our subsidiary and trusted supplier of plant-based raw materials.

These ingredients are processed directly on site, in our Extraction Laboratory. Here, our team of professionals draws on its expertise to concentrate the “soul” of the plants and separate the active ingredients that make our cosmetics unique and special from the inert matrix. We use over 400 extracts and distilled waters in our cosmetics, all of which are produced in-house and researched and formulated by our R&D Laboratory. Our artisanal and innovative approach enables us to offer products of the highest quality that are in harmony with their surroundings.

We use over 400 extracts and distilled waters in our cosmetics, all of which are produced in-house

Our logistics hub, which is located close to the production site, is where all packaging materials and finished products are stored and managed, either from contractors or directly from our Production and Packaging Department. The proximity of the production site to the logistics hub enables transport to be optimised and a constant, ensuring a constant and organised flow. A shuttle bus transports packaging materials to the department and finished products to the logistics hub twice a day, which means we can cut down on transport and make better use of space.

We then ship our products to retailers in Italy and more than 45 countries worldwide, including our own singlebrand shops, which consist of 200 retail stores, 68 of which are operated directly. This system is supported by efficient commercial management, which coordinates orders from agents, offices and shops to ensure a smooth operational flow and optimal management throughout the entire production and distribution chain.

Most of the raw materials used in our production are sourced from domestic suppliers. Only a small percentage are imported from abroad, primarily from European countries. Our management system allows us to seamlessly integrate supplier information and effectively monitor the supply chain as a whole. The transportation of our supplies, including those from abroad, is primarily by road, thereby minimising our environmental impact. We also have highly organised outbound logistics: each year, we handle around 100,000 B2B shipments and 120,000 e-commerce orders, with reliable carriers ensuring that these are delivered accurately and on time.

To continue strengthening our commitment to an increasingly sustainable supply chain, we are actively involving suppliers and encouraging responsible practices across the entire value chain. We have started updating our practices, including distributing an ESG questionnaire to 150 of our suppliers, the aim of which is to improve traceability and integrate sustainability into their operations.

Although we maintain strong relationships with our long-standing suppliers, we are introducing regular audits to monitor performance and encourage ongoing improvement. We are also working on an official code of conduct that will be included in contracts and that will outline shared values and responsibilities.

We aim to gradually expand the application of these criteria, ensuring constant monitoring and supporting our suppliers in adopting more sustainable practices that align with our principles and our customers’ expectations. Therefore, our supply chain approach focuses on ensuring efficiency, optimising resources, and promoting sustainability. We are committed to ongoing development to ensure maximum transparency and responsibility at every stage of our operations.

From the outset, our commitment has been to enhance the extraordinary properties of plants and transform them into highly effective, high-performance products. The quality of our creations is the result of the harmonious interplay of multiple factors:

2.2 Natural and safe products for our consumers

1. 2. 3.

We carefully select excellent raw materials

In selecting our raw materials, we adopt strict criteria that take into account the safety and environmental impact of the ingredients. This is why we select only GMO-free ingredients and do not use substances such as parabens, sulphated surfactants, chlorinated compounds and nanoparticles. We also exclude Octinoxate and Oxybenzone filters, as these are prohibited by the Hawaii Corals Treaty and are considered to be among the causes of coral bleaching resulting from human activity.

Our raw materials are selected in collaboration with Erbamea, our subsidiary and supplier of medicinal herbs. This meticulous approach allows us to adhere to our company’s philosophy, which is based on a strict Made in Italy policy. All of our cosmetics are conceived, formulated and produced entirely in Italy, without relocating or outsourcing any stage of the manufacturing or shipping process to third countries.

The distinguishing features of the plant-based active ingredients in our self-produced extracts

Our Extracts Laboratory specialises in the research, development and production of more than 400 extracts and aromatic distilled waters, using only eudermic solvents such as water, plant-derived glycerine (preferably certified organic) and organic sunflower oil.

The extreme care taken at every stage of the development and production of our phytocosmetics

We oversee every stage, from the initial idea to the research and production of the cosmetic product. Our production site in the Adda Sud Park is where every stage of manufacturing takes place. Here, the Extracts Laboratory and the R&D Laboratory select the finest ingredients to formulate highly effective products. The Production and Packaging departments then turn these raw materials into finished products. Our Logistics Hub is where these goods are shipped to our retailers all over the world.

We are continuously developing innovative solutions and optimising our Research & Development and Extract Research & Production processes, with the aim of creating increasingly sustainable cosmetic formulas. One of our key initiatives has been to expand our range of waterless products, focusing on solid solutions with an extremely low water content. In addition to responding to the growing demand for sustainable options, these products also help to reduce the environmental impact of formulas and packaging.

Using formulas with a low water content means that more sustainable packaging, such as cardboard instead of plastic, can be used. Moreover, using less water in the compositions significantly reduces the volume and weight that needs to be transported.

In the last few years, waterless formulas have become an increasingly important part of our range: powder cleansers and new solid cosmetics such as the shampoos in the Eco-Routine for Perfect Hair line, the Solid Cleanser Face and Beard Hyaluronic Acid for Him, and the solid perfume Night in Tangier. We currently offer approximately 100 waterless products that are designed to meet a variety of cleansing and care needs for the skin and hair. These include naturally waterless oils and powder cleansers, marking a further step towards a more responsible and sustainable approach.

100 waterless products, or with low water content to meet different cleansing and care needs for the skin and hair

To ensure our products are effective and sustainable, we only use natural raw materials that are defined as renewable in our formulas. We mainly select plant-based raw materials and, where possible, we choose those cultivated under the strict guidelines of organic farming. At present, 95.15% of the ingredients we use (by weight, out of the total volume of ingredients used in 2024) come from natural sources.

The remaining percentage consists of ingredients that are necessary to guarantee product stability and appeal.

We use

1,400 different raw materials

2.3 The quality of our products and attention to consumer safety

The R&D Laboratory at L’Erbolario SB has a multidisciplinary team that plays a pivotal role in quality control. The Laboratory’s integrated approach ensures that knowledge is shared quickly and efficiently throughout the entire production process.

Our raw materials undergo rigorous testing in our Quality Control Laboratory, where we use cutting-edge analytical technology to monitor every parameter. Every stage of the production process is monitored carefully, from receiving the raw materials to creating the finished product. This approach allows us to act quickly when necessary, thereby ensuring continuous and thorough control.

All our formulas undergo a series of tests to ensure their Safety, Efficacy and Pleasantness before being approved.

Specifically, we carry out the following tests:

1. Accelerated stability tests: the product is subjected to various physical stresses and monitored for a period of six months in order to assess its ability to adapt to and withstand applied shocks. These tests simulate the conditions to which the product may be exposed over time, ensuring that the product’s quality remains intact, even if it has been on the shelf for a long time. In the event of a negative result, the process of developing the formula will begin anew.

2. Microbiological stability test: this test ensures that the product is free from microbiological contamination and that the preservative system effectively prevents contamination during use. Then, to test its resistance to contamination, the preparation is subjected to intense microbiological stress.

3. Clinical instrumental test: all of our products are rigorously tested in vitro and in vivo to assess tolerability, efficacy and pleasantness. The Department of Biology and Biotechnology at the University of Pavia is responsible for the evaluation of our research with the participation of healthy volunteers who test our products under the supervision of medical professionals for varying periods of time, depending on the type of cosmetic product.

4. Stability testing in official packaging: interactions between the product and its packaging are assessed to ensure there are no unwanted reactions.

Once the cosmetic formulas have been approved, they are passed on to the production department. Chemical, physical and microbiological quality control continues to play an essential role at every stage: from the initial bulk stage, through the production process, and up to the final verification of compliance with the set specifications. A microbiological analysis is then carried out on the goods after they have been unloaded from the plant. Once the

requirements have been met, the product is packaged in bulk and undergoes further microbiological analysis.

Moreover, to minimise the risk of allergies and ensure products are suitable for even the most sensitive skin, each production batch is tested for the presence of eight heavy metals (nickel, chromium, cadmium, lead, mercury, arsenic, antimony and cobalt).

The laboratory’s strategy for addressing non-compliance is based on continuous technological innovation and the implementation of state-of-the-art methodologies. This allows for faster and more effective quality control, thereby improving product safety and quality, while minimising response times and enhancing operational efficiency.

From the outset, both as a company and as a group, we have firmly opposed the testing of cosmetics on animals. This is a stance that we have maintained ever since we created our first phytocosmetic product.

Over the years, we have collaborated with the AntiVivisection League (LAV) in support of the ban on cosmetic tests on animals. In 1992, we joined forces with LAV and thousands of Italian herbalists to send over 20,000 postcards to the European Parliament, calling for an end to this practice.

We celebrated a big win in September 2004 when the ban on testing products on animals was introduced, and we are proud to have played a part in this achievement.

In addition, in 2006, we adopted the International Standard Stop Animal Testing, pledging not to use any raw materials tested on animals for cosmetic, chemical or pharmaceutical purposes. This battle, fought alongside numerous supporters of the animal rights movement and LAV, ultimately resulted in a total ban on testing cosmetic ingredients on animals within the European Union, which came into force on 11 March 2013.

L’Erbolario is more than just a phytocosmetics brand; it embodies a set of values that put the customer first. We share these values through our packaging and across all our communication channels, and they are also embraced by our Customer Service, for which we exclusively employ in-house staff who work closely with other company departments. We handle every report with care, whether it’s a question or a complaint, so that we can provide quick answers and appropriate solutions. We investigate all complaints relating to a specific product, examining the details in order to determine how it can be improved.

Our laboratory plays a crucial role: as soon as we receive a complaint about a product, we carry out a thorough analysis to identify any potential issues (or nonconformities). In addition, if a product receives a certain number of complaints, it is reviewed. If necessary, the product is then modified and improved in accordance with Good Manufacturing Practice (GMP) regulations.

Our integrated, proactive approach enables us to consistently deliver high standards of quality, satisfaction and safety, reaffirming on a daily basis our commitment to the people who choose L’Erbolario.

Our customer-centric approach is also evident in the shopping experience offered by our branded shops and our e-commerce platform, as demonstrated by the prestigious “Insegna dell’Anno” (Retailer of the Year) award we received in 2024. This research project, which is supported by hundreds of retail brands, measures consumers’ appreciation of their favourite shops and the ones they visit most frequently.

In fact, in the 2024 edition, we were awarded the title of Overall Winner in the Retailer of the Year category for the fifth time, as well as winning the Retailer of the Year award in the Herbalist Shop & Wellness category for both our physical shop (for the eighth time) and our website (for the fifth time).

Relationship with Customers

OBJECTIVE 1

2.4 Natural Beauty

L’Erbolario SB specialises in researching and developing natural cosmetic products that offer both affordability and high quality without compromise. The company ensures the highest standards of safety and functionality, putting the customer at the heart of every decision. It operates transparently and ethically by providing clear communication on the efficacy of its plant-derived formulas and giving careful consideration to every aspect of the consumer experience.

L’Erbolario Franchising SB distributes natural cosmetic products through a network of dedicated retail stores, ensuring consistently high standards of quality and safety. The company’s communication strategy is based on transparency, highlighting the effectiveness of its natural formulas and its ethical commitment. The customer experience is at the heart of every aspect of the business model, influencing strategic and operational decisions.

No GMOs

Products

Maintain 100% no GMOs % of non-GMO raw materials 100% achieved

Maintain a 100% gluten-free price list [Erbamea] % of gluten-free items 100% achieved

Maintain a 99% lactose-free price list [Erbamea] % of lactose-free items 100% achieved

Maintain 100% of products of plant-based origin [Erbamea] % of products of plant-based origin 100% achieved

2024 Goals Update

LAV (Anti-Vivisection League)

Reef-friendly sunscreens

Maintain 100% of LAV-certified products % of LAV products

achieved

Maintain 100% of reef-friendly sunscreens % of reef-friendly sunscreens 100% achieved

Waterless Summer fragrance range launch with a waterless product

Extracts and distilled waters

Products for sensitive skin

Quality of service provided

Feedback monitoring

Range launch On/Off waterless products

Self-production of Sicilian organic pistachio seed extract On/Off

Analysis of additional elements (e.g. cobalt) certified for all batches; launch of the “8 metals analysed” wording on packaging On/Off

achieved

achieved

achieved

Promotion of two (2) weekly newsletters inside which newsletters on sustainability and the company’s values will also be added, and implementation of monitoring indicators for the newsletters. #newsletters promoted / year #users reached through the newsletters 100% achieved

Launch a study on the option of activating an instant chat and integrating our Customer Service system with the main social media platforms.

Website optimisation and maintenance Analysis and study to optimise the website

Study launch On/Off

Study launch On/Off

Website evolution Collection of requirements for new website developments Study launch On/Off

achieved

SCOPE 2024 GOALS

ErboLIVE project

Monitoring and checks

KPI STATUS

One (1) live per month and assessment of monitoring indicators #lives/year 100% achieved

Four-monthly measurement of the quality provided within each individual shop by an external body with results that place L’Erbolario Franchising at 90-95%, i.e. within a level of excellence

% of the level of service quality excellence 100% achieved

Awards

Maintain the same number of awards of the previous year, both in relation to service and to the different categories of the various awards (Retailer of the Year, Best Retailer, Italy’s Best company in the Natural Cosmetics Service sector)

Awards On/Off 100% achieved

No GMOs Maintain 100% non-GMO raw materials

Maintain a 100% gluten-free price list [Erbamea]

Products

Maintain a 99% lactose-free price list [Erbamea]

Maintain 100% of products of plant-based origin [Erbamea]

LAV (Anti-Vivisection League)

Maintain 100% LAV certification on all products and their marketing

Setting 2025 goals

Reef-friendly sunscreens

New lines

Reuse of materials

Low-emission products

Suppliers

Quality of service provided

Omnichannel communication

Website

optimisation and maintenance

Maintain 100% of reef-friendly sunscreens

Launch of a product line with an organic fig extract

Launch of 4 new products with sustainability features

Use of individual plants for multiple processes (e.g. distillation of water), generating a reduction in waste

Introduction of lines with low-emission production processes (e.g. tea at room temperature)

Expand the network of herbal drug suppliers to include certified suppliers who adhere to environmental and sustainability practices

% of non-GMO raw materials

% of gluten-free items

% of lactose-free items

% of products of plant-based origin

% of LAV products

% of reef-friendly sunscreens

Range launch On/Off

Range launch On/Off

% of lines with distilled water

% lines of lowemission products

% suppliers with sustainability certifications

Promotion of two (2) weekly newsletters inside which newsletters on sustainability and the company’s brand values will also be added, and implementation of monitoring indicators for the newsletters #newsletters promoted/year #users reached through the newsletters

Send a single communication/NL to subscribers at the different touchpoints (website and shops belonging to the franchise chain), if they have a unique ID Newsletter sent

Analysis and study to improve website usability (replatforming) Study launch On/Off

Compliance with European regulations

ErboLIVE project

Adapt the accessibility of the corporate website to European regulations (European Accessibility Act (Directive (EU) 2019/882, “EAA”)

On/Off

One (1) live per month with the brand’s beauty expert and assessment of monitoring indicators #lives/year

Social networks Implement and oversee the “Tik Tok” platform #publications/ year

3. Protection of the environment and nature

The concept of sustainable development is a key ethical principle on which our work is based: the responsibility to preserve a healthy and balanced environment for future generations.

With this in mind, the constant search for new ways to reduce the impact of our manufacturing processes and products is a priority for us.

We are also committed to protecting the natural areas in which we operate and we intend to contribute to the achievement of the climate neutrality goals set by the European Union for 2050 to meet the current climate emergency challenge.

We have been working towards this goal since 2002, when we adopted a UNI EN ISO 14001 certified Environmental Management System that enables us to improve our environmental performance and reduce our negative environmental impact in compliance with legislation. This structured approach enables us to set increasingly ambitious goals and progressively reduce our impact, while ensuring the responsible management of resources.

proactive approach to impact of our production sites. This commitment involves streamlining processes to maximise production yield, minimise resource and energy consumption, and increase the use of renewable energy sources.

To optimise our energy consumption, which includes natural gas, the fuel used for our fleet and, most importantly, electricity, we regularly monitor and report on how it is used. Constant monitoring allows us to assess energy performance and identify potential areas for improvement.

Over the last three years, our total electricity consumption has decreased by 19%, from 12,908 GJ in 2022 to 10,392 GJ in 2024. During this three-year period, the amount of energy we purchased from the grid decreased significantly (by 32%), and our commitment to clean electricity increased: today, almost 90% of the electricity we use comes from renewable sources. The clean energy we use comes from two sources: 54% is purchased and certified through Guarantees of Origin (GOs) and 35% is produced by our

own photovoltaic systems. By relying more on solar energy, we can reduce our climate footprint and become less dependent on the energy market.

Total fossil fuel consumption increased slightly over the three-year period, primarily due to increased petrol use for the company fleet, while diesel use decreased. This 65% increase (from 2022 to 2024) relates to L’Erbolario SB and L’Erbolario Franchising SB in particular. Erbamea, on the other hand, does not use this type of fuel for its company fleet, which runs on diesel. Consumption of natural gas, which is used for heating working environments and operating production facilities, as well as drying kilns in Erbamea’s case, decreased by 8% over the three-year period. Similarly, diesel consumption fell from 1,858 GJ in 2022 to 1,322 GJ in 2024.

3.1 Our energy consumption and emissions

Self-produced and consumed 39%

In fact, the production site and Logistics Hub of L’Erbolario SB already meet all their electricity needs through this combination of self-production and certified purchases. L’Erbolario Franchising SB embarked on this journey in June 2024, aiming to achieve 100% renewable energy for its direct shops by 2025. Alongside this goal, we are working on an agreement that will extend this opportunity to our affiliated shops.

Solar energy is a key pillar of our strategy: in 2023, we expanded our solar farm by increasing the installed capacity from 977 kWp to 1,677 kWp, and we are already planning a further expansion for 2025. Thanks to this investment, we have increased our self-produced and consumed electricity by 8% in just one year, from 3,397 GJ in 2023 to 3,681 GJ in 2024. Today, 65% of the energy generated by our solar panels is used directly by our plants, with the remaining 35% being

fed into the grid, thus contributing to an improved overall energy mix.

In addition to using solar energy, our Logistics Hub has an A1 energy rating, which is rare for an industrial building. Designed with long-term sustainability in mind back in 2010, it is a concrete example of how innovation can reduce our environmental impact.

The 27,000 m² building is equipped with a heating and air conditioning system that is powered exclusively by geothermal energy, eliminating the need for methane gas. It also features an innovative underfloor cooling system that uses groundwater. Thanks to its open-circuit geothermal heat pump system, this heating system is far more efficient than conventional systems. A free cooling system is also used to cool rooms during the summer by making use of the naturally low temperature of the groundwater drawn from our company’s three

wells. This system has enabled us to substantially reduce our energy consumption, paving the way for a more sustainable production model. Additionally, some of the electricity required to power the Logistics Hub is generated by our solar farm.

These results demonstrate our commitment to a more sustainable future. Every choice, from producing our own solar energy to reducing our consumption, brings us closer to achieving a more efficient, low-emission production model. In general, our total energy consumption has decreased from 23,050 GJ in 2022 to 19,859 GJ in 2024 (-14%). This accomplishment stands as a testament to our unwavering dedication to improving energy efficiency and reducing our environmental impact.

The L’Erbolario Group is committed to reducing its energy consumption, as demonstrated by its efforts to minimise greenhouse gas emissions.

Direct emissions (Scope 1), which are mainly generated by the use of diesel and petrol for the company fleet, as well as by natural gas for heating and production processes, totalled 578 tonnes of Co2e in 2024. This figure is slightly higher than in 2023 (+3%), yet represents a decline compared to 2022 levels of 613 tonnes CO2e (-6%). In particular, diesel emissions continue to decrease (99 tonnes of CO2e in 2024, -29% compared to 2022), while petrol emissions increase, reflecting the increased use of this fuel.

Following a significant reduction between 2022 and 2023, emissions related to natural gas consumption increased slightly in 2024 (391 tonnes of CO2e, -11% compared to 2022, but +8% compared to 2023).

Scope 1 in 2024

There has been a steady decline in indirect emissions from electricity purchases (Scope 2), due to our unwavering dedication to using more sustainable energy sources.

These emissions, arising from the purchased energy used to power our plants, are calculated using two methods: location-based and market-based. The first calculation method is based on the average carbon intensity of the local electricity grid, whereas the second considers energy choices such as the use of renewable energy and Guarantees of Origin (GOs). Location-based emissions dropped to 419 tonnes of CO2e in 2024, marking a 49% decrease compared to 2022. The market-based method yielded an even more significant result, with a 50% drop and emissions standing at 148 tonnes CO2e. Alongside this commitment, we also generate electricity using photovoltaic systems.

L’Erbolario SB has achieved significant savings in emissions from self-produced electricity: in 2024, approximately 230 tonnes of CO2e were avoided, which would otherwise have been produced by fossil fuels.

Overall, total emissions (Scope 1 + Scope 2) show a consistent downward trend. With the market-based method, emissions fell from 908 tonnes of CO2e in 2022 to 726 tonnes of CO2e in 2024 (-20%), whereas with the location-based method, the reduction was even more pronounced, with emissions falling by 30% in the same period (from 1,429 tonnes of CO2e to 998 tonnes of CO2e).

Greenhouse

Additionally, purchased electricity was offset in 2024 to mitigate the residual impact, albeit minimal, of renewable energy generation and distribution. A total of 525 tonnes of CO2 were offset by supporting the Mai Ndombe REDD+ Project in the Democratic Republic of the Congo. The project’s goal is to safeguard 248,956 hectares of forest against industrial logging, the unsustainable harvesting of firewood, and slash-andburn agriculture. This pioneering project is the first of its kind in the Congo Basin and is expected to produce over 175 MT of CO2-e over 30 years.

Since 2025, we have been calculating Scope 3 emissions in order to map the company’s carbon footprint arising from activities beyond its own boundaries. This process will involve measuring emissions related to the purchase of raw materials, as well as upstream and downstream logistics and the disposal of end-of-life products. By accurately monitoring these emissions, we can gain a better understanding of our entire value chain and plan

WORKING TOWARDS A ZERO-EMISSION FUTURE With

Once again, this year, we took part in the “M’illumino di Meno” initiative sponsored by Rai Radio2 with the Caterpillar programme on the National Day for Energy Saving and Sustainable Lifestyles. The twentieth edition, held in 2024, was entitled “No borders”. Listeners were asked to switch off non-essential lights as a way of saving energy and improving efficiency. As part of this initiative, they were also encouraged to form international alliances, such as twinning agreements for municipalities, international projects for schools, universities and research institutions, and foreign branches for companies. Here at L’Erbolario SB, we are proud to support this important initiative. In fact, we believe that we can all play our part

by adopting a few simple habits in our daily lives.

16 febbraio 2024

L’Erbolario Franchising also took part in the aperti al risparmio energetico” (We energy saving) campaign, sponsored by Confimprese and supported by the Italian Ministry of Transition, which encouraged shopkeepers to doors as a way of reducing energy consumption promoting sustainability.

Giornata Nazionale del Risparmio Energetico

e degli Stili di Vita

Sostenibili

3.2 Responsible management of our environmental impacts

Water management

The Group also emphasises the importance of using water resources responsibly. By embracing sustainable practices and cutting-edge technology, we are committed to taking a balanced and mindful approach to managing this valuable resource.

Total water withdrawal increased by 24.9% in 2024, rising from 233,098 m³ to 290,993 m³. This increase is mainly due to a 27.5% increase in the amount of water withdrawn from wells for land irrigation. The amount of water withdrawn from aqueducts, however, saw a slight decrease of 4.7%. A similar trend was seen in total water discharges, which rose from 232,022 m³ to 290,045 m³ (+25%). Despite an increase in withdrawals, the total amount of water consumed (the difference between withdrawals and discharges), decreased slightly, from 1,076 m³ to 948 m³ (-11.9%).

L’Erbolario SB primarily uses water for production and toilet facilities. By contrast, L’Erbolario Franchising and Erbamea use water exclusively for toilet facilities, with substantially equal volumes of water being drawn and discharged.

In order to reduce its consumption of drinking water, L’Erbolario SB Srl has installed a number of solutions to improve the efficiency of its technology. At the Logistics Hub, water recovered from the heating and cooling system is reused for dual-use systems and irrigation.

On the other hand, at the production site, we recover waste water from the osmosis plant to produce vacuum by means of liquid ring pumps. These practices help to create a virtuous cycle that saves and optimises water resources, thus contributing to a more responsible use of water and making production activities more sustainable in the long term.

We firmly believe that any kind of waste can be turned into a valuable resource. This is why we are committed to improving materials management on a daily basis, with the aim of reducing waste and maximising resource recovery.

In 2024, the total amount of waste produced increased slightly, from 625.89 tonnes to 649.97 tonnes (+4%). This was primarily due to a 27% increase in the amount of hazardous waste, which rose from 91 to 115 tonnes. On the other hand, non-hazardous waste remained relatively unchanged, with a modest decrease from 535 tonnes to 534 tonnes. The percentage of hazardous waste in the overall waste increased slightly, from 15% to 18%

Waste management

Management of pollutant emissions

Both L’Erbolario SB and Erbamea comply with the requirements of the Single Environmental Authorisation (AUA). During the two-year period from 2023 to 2024, the applicable regulatory limits were not exceeded. The data demonstrate a reduction in non-methane volatile organic compound (NMVOC) emissions, from 158,655 kg per year in 2023 to 122,723 kg per year in 2024, thus confirming the company’s commitment to minimising its environmental impacts. With regard to water discharges, the amount of phenols emitted into the water increased from 101 kg per year in 2023 to 126 kg per year in 2024. Nevertheless, the recorded values have remained consistently within the prescribed regulatory limits once again, thereby ensuring compliance with applicable water protection legislation.

3.3. Protecting biodiversity and safeguarding flora and fauna

As part of our efforts to minimise our environmental impact, we are committed to protecting flora and fauna because we recognise that nature is an invaluable asset that must be preserved for future generations.

We seamlessly integrate environmental protection and the conservation of natural resources into every aspect of our operations, from the careful selection of raw materials to the implementation of production processes that respect local ecosystems.

By doing this, we are not only preserving biodiversity, but also demonstrating that we can operate in a responsible and sustainable way, thereby helping to build a better future for our planet.

We are committed to protecting flora and fauna because we recognise that nature is an invaluable asset that must be preserved for future generations “

In fact, our production site is located within the Adda Sud Natural Park and now occupies a green area of approximately 200,000 square metres, which is home to about 30,000 trees, shrubs and wild herbs. The area has now become a nature reserve, complete with hedges running along its entire perimeter. These hedges, alongside the lush greenery, act as wildlife corridors, providing a habitat for the area’s native fauna, including squirrels, foxes, birds of prey, roe deer and badgers.

Our vision is about more than just making cosmetics: we want to be guardians of nature to protect its delicate balance. We believe that companies can and should play an active role in preserving the environment and building a sustainable future that respects biodiversity. This is why we have decided to maintain strong links with the local area and its biodiversity, and our adherence to the Adda Sud Park Trademark is a testament to our dedication. With this initiative, we aim to contribute to enhancing the Lodi area and transforming the entire park into a valuable resource for all the companies wishing to be part of it.

in accordance with organic principles and the highest sustainability standards. The only exception is a small ornamental section of the garden, which is managed using integrated farming techniques.

To take care of the lawn, we also follow the ECOprato turf maintenance method, certified by the CSI CERT external body, which aims at reducing environmental impact and increasing biodiversity. We also apply various water preservation practices to optimise water consumption: sprinkler irrigation for ornamental lawns, drip irrigation for permanent lawns and drip irrigation for orchards, ornamental beds and tall trees.

Our strong connection to our local area is evident in our efforts to protect the local flora, preserve native plant species, and safeguard the surrounding ecosystems. Our activities focus on recovering and protecting the soil, riverbanks and irrigation ditches, with the aim of preventing erosion and maintaining the area’s ecological balance.

Since 2005, we have taken an important further step by converting all our company’s farmland to organic farming and obtaining the certification awarded by ICEA (Institute for Ethical and Environmental Certification). This certificate confirms that all our agricultural activities are carried out

OBJECTIVE 2

3.4 Good for the planet

}As a leading manufacturer of cosmetics made from plant-based ingredients, L’Erbolario SB Srl is committed to sustainability and reducing the amount of chemicals used in its products. Its mission is to promote biodiversity by cultivating native species and encouraging a natural lifestyle. In alignment with European and national climate neutrality targets, the company is transitioning towards a zero-emission business model.

L’Erbolario Franchising Srl promotes ethical responsibility and distributes its products through retail stores designed to have a minimal environmental impact.

2024 Goals Update SCOPE

Biodiversity and local area

Install 33 nesting houses in the park # nesting houses 100% achieved

Install hives for wild bees # hives for wild bees 100% achieved

Form a partnership to sponsor playing cards, with the aim of raising children’s awareness of biodiversity issues On/Off

Restore the fountains in the Cascina Folla meadow On/Off

Convert the ornamental lawn of about 5,000 square metres at our Logistics Hub into a flower meadow by planting species attractive to pollinators, which will be mowed once a year

Ensure a 100% green electricity supply in direct retail stores and launch the franchise agreement proposal % green electricity supplied

Evaluate and replace the cable radio/ evacuation system

Introduce the new AZZINI mixer for tanks in the Extract Production Department, placing an order for the new instrument, test procedure and field trials

achieved

Efficiency of manufacturing processes

Implement a computerised system for managing the collection and sampling of expired product batches, as well as the management of goods receipt and impromptu requests, followed by order placement for a new instrument, test procedure and field tests

Create a dashboard to monitor the productivity of the extract department, focusing in particular on organic versus non-organic production. The specific data to be processed by the dashboard needs to be defined

Take measures to reduce heat loss in the corridor of the facility at street number 74. On/Off

Install air curtains on the quarantine room door in the direction of the corridor at street number 74. On/Off

1 The conversion has been carried out and sowing has been completed. We are waiting for spring to arrive so that we can verify the results.

2 We are waiting for the cable radio quote.

3 NEW PIPE was awarded the project, with delivery scheduled for 2025.

4 The order will continue in 2025.

Energy

Participate in the 2024 “M’Illumino di meno” campaign by promoting energy-saving practices throughout the franchising and affiliate network On/Off 100% achieved

Participate in the “Siamo aperti al risparmio energetico” campaign that involves closing shop doors in direct and affiliated shops, should the initiative be repeated On/Off 100% achieved

Open 16 new shops, all fitted with 100% LED lighting # shops opened 100% achieved

Replace LED lights where renovations are planned, a total of 5 interventions

Launch 71 new products with more sustainable packaging, including 27 items without secondary packaging or case

# replacements 80% achieved5

# new products with more sustainable packaging 100% achieved

Launch a pilot project to replace conventional adhesive tape with paper tape On/Off Not achieved6

Environmentally friendly design of the product and packaging throughout the life cycle

Take measures to reduce the use of paint in packaging in the production department by using only FSC® certified paper (previously painted white boxes will be replaced with unpainted, Havana-coloured FSC® boxes)

Launch a five-product range with 100% recycled aluminium packaging

Launch at least 2 products with sustainable packaging, called “X Paper”

% of FSC® paper used 100% achieved

# products with 100% recycled aluminium packaging 100% achieved

Sustainable procurement policies

Reduce methane gas consumption

Reduce electricity consumption

B_CORP certification

Prepare a feasibility study and cost estimate for installing charging stations for a total of eight parking spaces.

Approval has been given for the installation of six charging points at street number 76 and two at street number 74

Start calculating the Group’s carbon footprint (Scope 1 and 2) for 2022 and 2023, with the year 2022 as a baseline

Increase the number of vehicles converted to hybrid or electric power by at least 10%, including plug-in hybrids, mild hybrids and plug-in vehicles

Launch a study to calculate reduced emissions in 2023

Integrate Minimum Environmental Criteria (MEC) into procurement policies for goods and services.

Install a solar thermal system to produce domestic hot water for showers and washing equipment in the extract department

Conduct a feasibility study to plan the replacement of indoor lighting fixtures, switching from conventional to LED lighting solutions

Prepare a feasibility study to expand the existing solar farm

Conduct a thorough evaluation of the company’s impact on a variety of social and environmental issues

Commit to offsetting all residual emissions resulting from renewable electricity purchases (Scope 2) % offset emissions 100% achieved

# products with sustainable packaging 100% achieved Climate neutrality

Take part in a collaborative plan for training and developing the business model towards zero emissions, through Exploration Labs as part of the CO2alizione Italia initiative. On/Off 75% achieved7

5 Only four of the five planned renovations have been completed. The fifth will be carried out in 2025.

6 We are waiting for management to approve the annual expenditure required.

7 The initiative is still underway.

8 Awaiting management approval. The project will be completed in 2025.

9 We have requested the required quotes and are currently awaiting delivery.

10 One of the three companies has provided the requested details. We are waiting for the other two so that we can analyse the investment and cost/benefit ratio.

Efficiency of manufacturing processes

Packaging Department: project to install new equipment, specifically a collaborative robot for pick & place operations, for use in further production lines. The final details of the project, which is scheduled for completion in 2025, are currently being finalised On/Off

CIP Washing for the Production Department: the design of a plant washing system that uses recycled water is being finalised. In addition, we are considering using the recycling system to sanitise a plant component that is currently treated with steam. This solution will initially be implemented in one plant, with the option of extending it to other plants in the future. On/Off

Analyse the packaging materials used for e-commerce orders processed at the Logistics Hub. On/Off

Schedule the replacement of LED lights at planned renovation sites, with at least three interventions scheduled for 2025 in Rome, Chieti and Venice. # replacements

Setting 2025 goals

Energy

Environmentally friendly design of the product and packaging throughout the life cycle

Logistics hub: implement energy-saving and energy-efficient measures in the Logistics Hub. LED lights will be replaced gradually throughout the various departments, starting with the second floor and then in other departments. Additionally, we are currently considering expanding the photovoltaic system On/Off

Introduce two products with refillable packaging # products

Introduce five summer products without secondary packaging # products

Introduce five products in refillable format, made of 100% recycled aluminium # products

Introduce 100% recycled plastic products, with currently one product confirmed # products

Start using paper tape in the packaging department On/Off

Produce “pochettes” for limited-edition launches in recycled polyester. Production has already begun and continuity is planned On/Off

Reduce the amount of packaging used for e-commerce shipments. On/Off

Climate neutrality Start calculating Scope 3 greenhouse gas (GHG) emissions. On/Off

Our people

“ ”

We have always recognised the importance of shared responsibility and have built relationships based on transparency and open dialogue with everyone we work with.

We have always recognised the importance of shared responsibility and have built relationships based on transparency and open dialogue with everyone we work with.

Ensuring the physical and psychological well-being and safety of our employees is at the heart of our commitment. We promote a serene, positive and stimulating working environment, where they can fulfil their personal potential and achieve a harmonious work-life balance.

Viale Milano

4.1 Our workforce

At the end of 2024, the L’Erbolario Group employed 588 people, marking a 20% increase compared to the 491 employees in 2023.

This growth was primarily driven by the expansion of L’Erbolario Franchising and the opening of new shops throughout the year.

Breakdown of employees in the two-year period from 2023 to 2024

Via dell’Agricoltura

A distinctive feature of the Group’s workforce is its large number of young employees: the majority of employees (50%) are aged between 30 and 50, while 37% are under the age of 30. This figure reflects the Group’s strategy of investing in the younger generations, tapping into their energy and innovative potential.

With regard to the various companies within the Group, as at 31 December 2024, L’Erbolario SB and L’Erbolario Holding employed approximately 200 people, while Erbamea had 25 staff members. L’Erbolario Franchising SB has a team of 363 people, 12 of whom work in the Lodi offices. A further 10 people are responsible for managing around 70 single-brand shops operated directly by the company nationwide, in which the remaining 341 individuals work.

With regard to the applicable contracts, L’Erbolario Franchising SB and Erbamea apply the Trade, Tertiary, Distribution and Services contract, whereas L’Erbolario Holding and L’Erbolario SB apply the ChemicalPharmaceutical sector contract.

Managerial staff are employed under either an Industry or a Trade Executive contract.

In 2024, the L’Erbolario Group’s workforce remained predominantly female, with women accounting for 85% of employees, whereas men accounted for the remaining 15%.

The overall number of employees increased compared to 2023, with the gender distribution remaining consistent with that of previous years.

The number of management-level employees decreased slightly from eight to seven in 2024.

The gender composition remained largely unchanged, with a majority of men (86%) and a steady number of women (14%).

363 employees

L’Erbolario Franchising

The Group is renowned for its stable and established working environment, with low staff turnover that helps to create a sense of cohesion and continuity within teams. The turnover rate was 26% in 2023 and 28% in 2024. The Group’s companies are committed to creating longterm employment opportunities. They pay particular attention to recruiting highly qualified individuals and attracting talented people from nearby areas, thereby strengthening their ties with the local community.

Conversely, the franchising sector typically experiences a higher staff turnover rate, which is characteristic of the retail business model, resulting in a greater demand for staff replacements. In fact, 165 contracts were terminated in 2024, which is a 29% increase on 2023, 96% of which were in L’Erbolario Franchising shops. This figure reflects the sector’s distinctive characteristics and dynamics, which are shaped by market trends and the intrinsic nature of commercial activities.

As part of the Group’s commitment to maintaining a fair and respectful working environment, not a single charge was brought through the designated channels, nor were any fines or penalties incurred for discrimination or human rights violations against employees during the 2023–2024 period.

0incidents of discrimination or human rights violations

Employee remuneration

a fair salary.

In fact, the Group ensures that remuneration is aligned with internal equity principles and external market competitiveness. In the process of defining actions, strict compliance with Italian regulations and the relevant national collective bargaining agreements is ensured in order to avoid any form of discrimination.

The Group’s remuneration policies and processes aim to recognise and reward employees for their dedication, consistent achievement of results, skills and behaviour.

We firmly believe that the attention dedicated being, health and quality of life of our to promoting a serene and positive working

This is why we offer L’Erbolario Franchising range of corporate benefits divided into two categories: be used in the Lodi area, be used outside the Lodi area and agreements in place with various shops from different sectors so that our staff discounts and customised preferential

In 2023, we partnered with Corporate the market leader in corporate benefits was to expand our offerings and benefits while also providing a more accessible structured benefits system. This partnership companies with an exclusive sales channel to the general public, giving users access advantageous discounts. Throughout out an evaluation to extend the use Erbamea employees and area agents.

4.2 Well-being in the workplace

Throughout the year, as L’Erbolario SB we signed a second-tier collective bargaining agreement with local trade union representatives, which includes a participation bonus.

This bonus is paid out once certain productivity and profitability targets have been achieved, with specific indicators set for each work area. We have implemented a Management by Objectives (MBO) system for some of our middle managers and executives, with customised performance indicators for each department.

As our company has a predominantly female workforce, we have decided to introduce a number of measures in the performance bonus scheme to meet our female colleagues’ needs. One of these measures is paid leave, which allows women with health issues related to their menstrual cycle to take up to eight hours off work per month.

Additionally, mothers with children aged three to eight can take up to three days of paid leave each year to care for their sick children.

All company employees are entitled to 12 hours of paid leave per year for medical examinations.

L’Erbolario SB and L’Erbolario Franchising SB also foster a flexible working environment by offering their employees the option to work remotely one day per week. This is made possible by an agreement signed with each employee whose job is compatible with remote working. This initiative not only promotes a better work-life balance, but also demonstrates the company’s commitment to improving its staff’s well-being and satisfaction.

4.3 Health and safety

Occupational health and safety is an integral part of our corporate culture, not just a regulatory requirement. We believe that a safe and healthy working environment is achieved through a daily commitment to shared responsibility, attention to detail, and a drive for continuous improvement. This is why we take a proactive approach focused on prevention and protection, which involves not only our employees but also our external collaborators. The Group ensures occupational health and safety by implementing an integrated QAS (Quality, Environment, Safety) system, which establishes company-wide policies and procedures applicable at all levels. One of our most recent initiatives involved revising the procedure for procuring and distributing Personal Protective Equipment (PPE). We are also introducing other new procedures, including those relating to the surveillance of fire-fighting equipment and the practical organisation and management of health surveillance. Our organisation is committed to operating in full compliance with current regulations. To this end, we conduct planned quarterly audits to ensure compliance with legislation in all our activities.

All employees and external collaborators receive occupational health and safety training through a structured programme consisting of both general and specific modules. All new external collaborators participate in an introductory course designed to provide them with basic knowledge of the applicable regulations and essential safe working practices. In addition to the initial training, regular refresher sessions are held to ensure that staff are kept informed of the latest regulations and best practices. Specific training, on the other hand, is designed for different company departments and focuses on the risks and responsibilities associated with individual tasks. Purchasing consultants working in shops receive dedicated training in food hygiene and safety (HACCP), which is essential for anyone handling bulk foods such as herbal teas and infusions. The Group adheres to strict standards to ensure that it is adequately prepared to operate in accordance with local guidelines. This approach not only ensures regulatory compliance, but also fosters a company-wide safety culture that benefits both workers and customers. Four minor injuries occurred among employees in 2024, which is one more than in 2023. There were no incidents resulting in serious consequences, such as accidents causing an employee to be absent from work for more than six months, or fatalities.

4.4 Training and development

Our company philosophy is based on excellent product quality combined with a unique sales approach focused on building customised, trustworthy and lasting relationships with customers.

A relationship that is able to convey the Group’s principles and add value to retail stores and the company’s brand through the reliability transmitted by its staff.

“Excellent product quality combined with a unique sales approach focused on building customised, trustworthy and lasting relationships with customers.

Since its launch in 2020, the L’Erbolario Academy has developed an extensive training programme for purchasing consultants, retailers, in-house staff and agents. This is a company-wide project, aimed at the staff of L’Erbolario SB and L’Erbolario Franchising SB, as well as all the brand’s retailers, including herbalists, pharmacies, over-the-counter pharmacies and NES (new successful herbalist shops).

Thanks to the Academy’s digital and interactive courses, developed via the Docebo platform, we can provide training content to our entire network of retailers and branded shops that they can access independently. The platform allows users to connect from any device at any time, ensuring maximum flexibility.

The courses cover key topics such as product knowledge – ranging from L’Erbolario’s phytocosmetics to Erbamea’s phytotherapy products –and customer relationship management, as well as best practices for effective shop management. A variety of innovative tools are used to support learning, including worksheets, sales simulations, quizzes and videos. Gamification is also used to make the learning experience even more engaging and interactive.

The platform was launched at the beginning of 2022 alongside a customer loyalty programme that rewards user activity within the academy. Specific badges are awarded at the end of each course.

Once users reach the three levels set for the course, they receive personalised gadgets and prizes, as well as Gold User Status, which gives them access to exclusive training benefits.

By the end of 2024, 25% of retailer customers were enrolled in the Academy, covering 41% of the retailer customer turnover. Additionally, all of the chain’s NES and shops were active on the platform, with almost 2,000 users in total.

5,015 hours of training

2,000 users

41% of turnover

A total of 80 hours of training were delivered in 2024. Of these, 23.5 hours were digital training sessions and 56.5 hours were introductory webinars. These included courses on phytocosmetics and phytotherapy for purchasing consultants, training on sales techniques, new products introduced in the various product categories (fragrances, facial care, body care, Erbamea phytotherapeutic products, etc.).

In keeping with our commitment to professional development, we are working on implementing a performance appraisal process. The in-house developed appraisal forms will provide a clear and systematic way of measuring employee performance and competencies, paving the way for a mutual evaluation process designed to foster trust and collaboration.

OBJECTIVE 3

4.5 Good for people

}Both L’Erbolario SB and L’Erbolario Franchising are committed to promoting an inclusive and safe working environment that fosters the professional and personal development of their staff. Their goal is to raise awareness of social justice issues by valuing women’s work and fostering a cohesive internal community that works towards shared goals.

Our focus is on building positive and healthy relationships, and we strive to create an environment in which every employee can grow and fulfil their potential, thereby helping the company to achieve its goals.

Specifically, we support individual growth through training and the promotion of inclusive practices, ensuring a healthy and safe working environment for everyone, with a particular focus on women.

SCOPE 2024 GOALS KPI

Remote working Option of working remotely one day per week if feasible with the task

Discounts

Medical tests

2024 Goals Update

days of remote

Throughout 2024, we will carry out an evaluation to extend the use of the portal to all Erbamea employees and area agents

Training and medical tests on company premises and where possible across Italy for cardiovascular and/or oncological conditions

Provision of 30 hours of self-study courses and webinars, as well as 60 hours of introductory webinars. Digital training will be complemented by face-to-face training.

Digital academy courses

Introduction of 3 new areas within the Academy: Conversations for wellness, Beauty notes and Cosmetology lessons

Creation of a monthly training plan with a specific monthly focus. Every training plan comprises information on existing courses and new gamification content with 3 new levels

Launch of a training course to qualify as shop manager (first semester on 20 branded shops / 30 people with affiliated shops) pilot projectL’Erbolario Franchising Start of On/Off training

L’Erbolario Academy courses

Introduction of a performance appraisal programme for all employees and one-to-one feedback for all employees with employees reporting directly to them, on an annual basis (L’Erbolario)

1 This project will be implemented in 2025.

2 We are currently working on the goal in question. The appraisal forms have been finalised, and the appraisal process will continue to be defined and structured throughout 2025.

Setting 2025 goals

L’Erbolario Academy and L’Erbolario Digital Academy

Launch of a training programme to qualify as shop manager, with a first semester dedicated to 20 branded shops and 30 participants from affiliated shops (pilot project) – L’Erbolario Franchising SB. # hours of training provided

Evaluation to extend the use of the portal to all Erbamea employees and area agents.

Benefits

Implementation of web accessibility to ensure an accessible experience for all users. On/Off

Training and medical tests on company premises and where possible across Italy. On/Off

5. Contributing to collective well-being

5.1 Local area and community commitment

We have a strong bond with our local area and we believe that generating value, even at an economic level, is our duty towards a community that has enabled us to grow over the years, always operating with respect for people, animals and the environment.

Our desire to make a positive impact on the local community comes to life through the numerous social responsibility initiatives we implement in support of local, national and international associations, not-for-profit organisations and philanthropic activities. We promote cultural and social development by sharing our knowledge. We also publicise events and projects that support organisations and their valuable work. By doing this, we share our values, stimulate debate and open up new possibilities for the future of the Group and our customers.

Our dedication encompasses a wide range of initiatives, all of which are guided by the following priorities:

WOMEN’S RIGHTS AND GENDER EQUALITY

HEALTH AND PREVENTION

SOLIDARITY AND SOCIAL INCLUSION

PROTECTING ANIMALS, BIODIVERSITY AND THE ENVIRONMENT

EDUCATION AND CULTURE

set out in our articles of association, providing support local solidarity initiatives is one of our top priorities.

feel it is our duty to contribute to the prosperity of Lodi, the very city in which we have grown and thrived business for the past 45 years. For this reason, many shops in Lodi are supporting solidarity initiatives, also by encouraging their regular customers to help those in need.

example, in February 2024, our L’Erbolario shops Lodi supported the “Casa San Giacomo, casa per tutti” project sponsored by the Fondazione Caritas Lodigiana ETS. The initiative aimed to renovate and redevelop the Casa di Accoglienza Femminile in Via San Giacomo 15, Lodi. Opened in 2000, this women’s shelter provides a safe haven for women in difficult situations, offering them the opportunity to rebuild their lives and envision a better future.

Women’s rights equality

On the occasion of International Women’s Day on 8 March, the L’Erbolario shops in Via Cavour and Corso Roma launched a concrete initiative to finance the project, donating 1 Euro for every product purchased to the renovation fund.

These activities began in September 2023 and aim to address three urgent new needs:

• bringing the entire building up to standard in order to continue collecting and distributing clothing;

• reorganising the San Bassiano Centre, which provides cloakroom services for the city of Lodi;

• creating a meeting room and office for the “Caritas Promotion” area.

In addition, on the occasion of International Women’s Day, 8 March 2024, L’Erbolario SB decided to donate all proceeds from online sales on its website to support the El Emirati Hospital, located in the southern part of the Gaza Strip, where Médecins Sans Frontières (Doctors Without Borders) was providing emergency care to pregnant women.

As part of our company’s commitment to humanitarian and solidarity causes, this initiative focuses particularly on supporting women in vulnerable situations. Back in 2021, we helped ensure 5,000 safe deliveries in Afghanistan. In 2024, we renewed our support for Médecins Sans Frontières, with the aim of protecting the health and safety of pregnant women in Gaza by providing practical assistance during one of the most critical humanitarian crises.

Our commitment to social causes is strengthened every year through our participation in Beauty Gives Back, a fundraising initiative supporting La forza e il sorriso Onlus, a not-for-profit organisation that runs free beauty workshops for women undergoing cancer treatment. In 2024, we participated in the eighth edition of the event, held in September as part of Milano Beauty Week at Palazzo Castiglioni in Milan. In exchange for a suggested donation, visitors could choose from a selection of cosmetic products offered by supporting companies, including L’Erbolario SB. Thanks to the money raised, these free beauty workshops have been expanded throughout the country, providing participants with moments of well-being, self-esteem and togetherness.

On the occasion of the International Day for the Elimination of Violence against Women, on 25 November, L’Erbolario SB initiated a collaboration with Amnesty International in support of the #IoLoChiedo campaign. Amnesty International is a global movement operating in 73 countries, which promotes the values enshrined in the Universal Declaration of Human Rights. With this campaign, launched in 2020, Amnesty International is calling for the amendment of Article 609-bis of the Italian Criminal Code, which currently states that the “crime of rape” must necessarily be linked to violence, threat or deception, or abuse of authority. Additionally, it aims to educate and raise awareness among young and very young audiences about the issue of consent in sexual relations, thereby promoting the cultural change that is essential to ensure that all women are treated with respect and dignity.

Thanks to our contribution, the association was able to produce 250 guides for teachers and educators, 1,800 Youth Action Kits containing food for thought for students, and 4,000 stickers to promote the campaign in a creative and engaging way. These resources enabled 1,000 boys and girls to take part in the project, with classroom discussions addressing issues such as the importance of consent and respect in emotional relationships.

All the material produced will be distributed to schools and local Amnesty International groups to help the campaign reach more people in 2025.

A key highlight of the initiative was the creation of the exhibition “Com’eri vestita?” (How were you dressed?), which was curated by students to give a voice to victims of abuse and showcase clothing worn by women who had survived violent attacks. The exhibition aims to dispel the misconception that a person’s choice of clothing can justify or provoke sexual violence.

In 2025, all activities carried out in schools as part of the #IoLoChiedo campaign, along with the testimonies collected and signatures gathered, will be handed over to the Italian government. This will serve as a call for concrete action to establish consent as a crucial value in both interpersonal relations and legislation.

We want to foster meaningful and lasting change through our contribution, with the aim of building a society that is more aware, respectful and inclusive.

Support for the campaign will continue into 2025, with a second external communications window planned to coincide with International Women’s Day on 8 March.

In May 2024, L’Erbolario SB decided to focus on people’s health and well-being by supporting the “Il cuore al centro” initiative, which aims to prevent cardiological diseases: the event took place in the squares of Lodi and Codogno, where citizens were given the opportunity to access a cardiology outpatient clinic and undergo examinations free of charge.

In October 2024, L’Erbolario SB decided to support LILT – Lega Italiana per la Lotta contro i Tumori (Italian League for the Fight Against Cancer) by participating in the Nastro Rosa 2024 Campaign, an initiative dedicated to breast cancer prevention. As a company where 85% of our employees are women, we recognise the importance of raising awareness of this serious disease, which affects millions of women around the world.

Health and prevention

For the fourth year running, we have supported the “Regali in Rosa” (Gifts in Pink) initiative, which is sponsored by LILT Milano Monza Brianza as part of the Pink Ribbon Campaign. This fundraiser involves selling Pink is Life boxes, with the aim of raising money for breast cancer research and prevention. The box contained a selection of products designed for women, including L’Erbolario cosmetics and an Erbamea infusion.

Through this initiative, we aimed to actively contribute to the fight against breast cancer by collaborating with LILT to promote women’s health and well-being.

Then, in November 2024, L’Erbolario SB and L’Erbolario Franchising SB set out to engage the staff of the Lodi office in a campaign aimed at preventing cardiovascular disease. The initiative was launched with an informative meeting, during which cardiologists from Ospedale Maggiore in Lodi presented the key risk factors and emphasised the importance of prevention. All colleagues involved in the project were subsequently given the opportunity to undergo free cardiological examinations and electrocardiograms at the company’s headquarters.

In November 2024, L’Erbolario SB supported the 16th edition of Convivio, a charity event founded in 1992 by Gianni Versace, together with Gianfranco Ferrè, Giorgio Armani and Valentino, with the aim of raising funds for ANLAIDS Lombardia ETS.

Established in 1985, ANLAIDS is the first Italian association dedicated to fighting the spread of HIV, AIDS, sexually transmitted infections, and emerging viral infections. Convivio is Italy’s leading exhibition market, combining fashion and social engagement. As well as major fashion brands, it involves many companies from the design, beauty and service industries, all of which donate their products, which are then sold to raise money for the cause. We also contributed to this edition, which took place at the Fabbrica del Vapore in Milan, by donating our cosmetics. The funds raised were used to support research, aid projects, prevention, well-being and the promotion of accurate information by Anlaids Lombardia ETS.

Solidarity and social inclusion

L’Erbolario SB supports PizzAut Onlus, an association founded in 2017 that opened Italy’s first pizzeria run by young people with autism spectrum disorders in Cassina de’ Pecchi in 2021. To celebrate our 45th anniversary in 2023, we supported the #100Mattoni per Monza fundraiser, which aimed to cover the training costs for boys working as pizza makers and waiters at the new PizzAut restaurant in Monza, as well as to establish the Palestra di Autonomia Abitativa, a facility designed to promote independence in daily activities. In 2024, we

renewed our commitment by joining the PizzAutoBus project, which involves setting up a fleet of 12 PizzAutbranded food trucks. The food trucks will travel around the Lombardy region to create new inclusive opportunities, with the ultimate goal of expanding throughout Italy and providing employment opportunities for autistic people. Moreover, on Friday 21 June, we invited all of our staff from the Lodi office out to lunch, which gave us the chance to meet the PizzAut team in person.

Since 2023, l’Erbolario SB has been a supporting partner of the Casa della Comunità Foundation, donating personal care and hygiene products from the L’Erbolario brand to the “Don Olivo Dragoni’ charity shop in Lodi. This emporium provides over 500 families in need with the opportunity to purchase essential goods using a points card, thereby improving their quality of life and helping them to meet their daily needs. Our collaboration with Emporio Solidale, which is based on the belief that hygiene and self-care are essential for maintaining personal dignity, is an important step towards creating a more inclusive and supportive community.

L’Erbolario SB also supports the TOG (Together To Go) foundation, which helps children with serious neurological conditions. TOG provides a therapeutic and playful environment where young patients can receive specialist care and take part in recreational activities, thus helping to improve their psychological and physical well-being. We demonstrate our commitment through the donation of free products, highlighting our support for the cause and our desire to improve the quality of life for children and their families. This collaboration also raises awareness of critical health and social support issues, emphasising the importance of working together to address the daily challenges faced by these families.

Protecting animals, biodiversity and the environment

In 2024, L’Erbolario SB became a Guardian of the Bees by joining the Domus Mellifera Project run by WBA Onlus in collaboration with the Taller delle Terre association. The western honey bee (Apis mellifera) plays a vital role in biodiversity and the survival of ecosystems through its pollination activity, which is crucial for the reproductive cycle of many plants. However, the number of honey bees is declining sharply as a result of habitat loss, the use of pesticides, and parasites. To help protect them, we have installed eight nesting houses in the green area of our production facility to provide a refuge for wild honey bees that does not require beekeeping. If one or more swarms of bees decide to settle, we will use the BeeWild app to monitor them without interfering with their natural activity, harvesting honey or collecting honeycombs. This initiative is part of the Taller delle Terre project, “TIME-HIVE Arena: Discovering Eldorado”, which we chose to support in 2024. The project was designed to encourage the next generation to learn more about and protect endangered natural ecosystems through play. Ten primary school classes in the Lodi area participated in the project, which provided the children with the opportunity to develop their knowledge and skills in the area of biodiversity protection through fun recreational activities and practical workshops.

the area’s biodiversity. Our decision to maintain direct contact with the natural world has been further solidified by our adoption of the Adda Sud Park trademark, which not only promotes the Lodi area but also adds prestige to the park as a whole for the companies that operate there.

L’Erbolario SB has launched a project to enhance its garden, with the aim of protecting and increasing biodiversity in the Lodi area. Located within the Adda Sud Natural Park, our production site is nestled amidst approximately 200,000 square metres of lush greenery, which is home to over 30,000 trees, shrubs and herbaceous plants. This area, which resembles a nature reserve, has hedges and vegetation all around it that act as wildlife corridors for local fauna squirrels, foxes, birds of prey, roe deer and badgers thereby promoting

In addition, in 2024, the project of cutting certain portions of the lawn only once a year, in early spring, was successfully implemented to encourage the development of herbaceous species with flowering attractive to pollinating insects and the attainment of maturity for seed-producing species valued by granivorous birds. We implemented the project of converting the ornamental lawn of about 5,000 square metres at our Logistics Hub into a flower meadow by planting species attractive to pollinators, also to be mowed once a year.

In 2024, we launched a project to redevelop the fountains

in an area of approximately 16 hectares of land owned by the Group and located next to the plant. The aim was to attract amphibians and migratory birds, as well as to protect endangered fish species such as the Italian spring goby (Knipowitschia punctatissima, also known as Orsinogobius punctatissimus), which are endemic to Northern Italy.

L’Erbolario SB has been a Corporate Golden Donor of FAI (Italian Environmental Fund) since 2007. FAI is a not-for-profit foundation that promotes the conservation and enhancement of Italy’s historical, artistic and natural heritage. The Fior di Salina cosmetic line was launched in 2018 as a result of this collaboration. The products in this line are formulated with sea salt from the Saline Conti Vecchi, a FAI-protected property located in the province of Cagliari.

On World Environment Day in June 2023, we renewed our commitment by becoming supporters of a valuable natural and landscape asset, through the annual donation of a specified sum to a woodland area, the Bosco di San Francesco in Assisi (PG). Thanks to our contribution, activities to conserve and maintain the woodland area have been supported, ensuring the site’s protection and preserving it as a place where humans and nature can coexist harmoniously. Moreover, to promote a culture of beauty and environmental protection, we give our staff the opportunity to visit FAI properties across Italy free of charge, thanks to the tickets provided by the Foundation each year.

Photo by Mirco Baccaille © FAI

Photo by Eleonora Dottorini © FAI

SUPPORTS THE WOODS OF ST. FRANCIS IN ASSISI

TOGETHER AGAINST ALL FORMS OF ABANDONMENT

As long-standing supporters of the Anti-Vivisection League (LAV), in 2024 L’Erbolario SB and L’Erbolario Franchising renewed their commitment to animal welfare by launching a special project dedicated to protecting dogs and cats. On Saturday 21 and Sunday 22 September, L’Erbolario Franchising SB donated 1 Euro to support the “Insieme per gli animali” (Together for animals) campaign for every L’Erbolario product purchased at its physical shops in Italy.

The proceeds from the initiative were used to support the first two stages of the LAV’s free sterilisation tour for dogs and cats, organised by the LAV – L’Erbolario mobile veterinary unit, which took place in Sassari and Vibo Valentia between October and November 2024. These two stages are among the 13 that were organised in 2023 as part of the “Insieme contro ogni forma di abbandono” (Together against all forms of abandonment) project. The aim of both initiatives is to promote responsible pet ownership and reduce the number of stray animals and kennel admissions, particularly in areas where facilities are overcrowded.

Education and culture

Once again, in 2024, L’Erbolario SB was a sponsor of the Ethical Photography Festival, the Lodi event dedicated to photojournalism. Now in its 15th edition, the international photojournalism festival featured over 20 exhibitions with almost 1,000 images by 150 photographers from 40 countries on 5 continents to tell stories and portray worlds that are often unknown, to reflect and wonder. Specifically, L’Erbolario SB supported Spazio Environment in celebrating the 90th birthday of the renowned ethologist Jane Goodall with “The Nature of Hope”, an exhibition paying tribute to her work and the work of the many female photographers she has inspired.

In addition, L’Erbolario SB was the main sponsor of the first edition of “Il fiume dei libri”, a literary festival that took place in Lodi in June 2024, featuring the participation of prominent Italian authors such as Roberto Saviano and Antonio Scurati. By doing this, we reaffirmed our commitment to promoting culture and literature, with the ultimate aim of breathing new life into the city’s cultural landscape.

Designed specifically for lovers of books and stories, this event has the potential to become an annual occurrence, firmly establishing Lodi as a key cultural destination.

Photo by © Katie Orlinsky

5.2

OBJECTIVE 4

Good for the Community

}Both L’Erbolario SB and L’Erbolario Franchising SB are committed to building a prosperous and responsible ecosystem by promoting ongoing dialogue with their stakeholders and supporting initiatives aimed at protecting the environment and enhancing natural resources.

L’Erbolario SB places particular emphasis on fostering the local economy, focusing specifically on the Lodi area. The company promotes local prosperity and collaborates with national and international bodies and associations.

By contrast, L’Erbolario Franchising is taking this mission nationwide by creating job opportunities across Italy, fostering social justice and women’s employment, and raising awareness in local communities of the importance of protecting natural resources and promoting sustainability.

2024 Goals Update

Donations

Support and create projects that reflect the core values of respect for people, animals and the environment. Some of the partnerships will be with: Doctors Without Borders, La forza e il sorriso, FAI, the Ethical Photography Festival, PizzAut, ASST Lodi, Lodi Municipality, Codogno Municipality, Lodi Hospital Cardiology Department, gifts to foundations and refuges.

Fundraising for International Women’s Day. Euros donated 100% achieved

Maintain participation in partnership initiatives (e.g. Cosmoprof, Horti Aperti, Orticolario, Beauty Week). On/Off 100% achieved

Partnerships

Launch of a playing card sponsorship partnership to raise children’s awareness of biodiversity issues. On/Off 100% achieved

Setting 2025 goals

Donations

Partnerships

Maintain support and create projects that reflect the core values of respect for people, animals and the environment. Some of the partnerships will be with: La forza e il sorriso, FAI, the Ethical Photography Festival, ASST Lodi, Lodi Municipality, gifts to foundations and refuges.

Euros donated

Introduction of a new fundraiser.

Euros donated

Collaboration with Amnesty International for the project #iolochiedo. On/Off

Maintain participation in partnership initiatives (e.g. Cosmoprof, Horti Aperti, Orticolario, Milano Beauty Week). On/Off

Annexes

METHODOLOGICAL NOTE

This Impact Report provides information on the L’Erbolario Group for the fiscal year from 1 January 2024 to 31 December 2024. Where available, performance figures for the three-year period from 2022 to 2024 have been included for comparison with previous years.

This report was prepared based on the Global Reporting Initiative’s (GRI) Sustainability Reporting Standards which were published in 2016 and updated in 2021, as well as the European Sustainability Reporting Standards (ESRS). The document also includes the Group’s materiality impact analysis, which was carried out in accordance with the ESRS guidelines.

The scope of the sustainability data reporting covers the following: L’Erbolario SB, including the Lodi headquarters and Logistics Hub, L’Erbolario Franchising SB, including directly affiliated shops, and Erbamea, which is based in San Giustino in the province of Perugia.

This report, whilst covering the entire Group, also fulfils the obligation required by Law 208/2015 for Benefit Companies, thus representing the Annual Impact Report of L’Erbolario SB and L’Erbolario Franchising SB. In compliance with the applicable regulations, this document outlines the common benefit objectives, the methods employed, the actions taken and any challenges faced. It also includes an impact assessment in accordance with an external standard, as required by law, as well as a section on future objectives.

The Impact Report provides a transparent overview of the Group’s performance, highlighting its strengths and weaknesses, and identifying areas for improvement. The structure of the data collection and reporting process ensures that performance trend information is consistent and comparable, and is correctly interpreted by interested stakeholders.

Impact materiality

Materiality analysis is a key element of the Group’s sustainability strategy: not only is it a useful reporting tool, but it also allows us to identify strategic priorities for the Group and our most important stakeholders, as it is also a tool to communicate with them.

According to the principle of impact materiality, a sustainability issue is considered relevant if it has significant positive or negative impacts on people or the environment in the short, medium or long term. The impacts include those related to the company’s own operations and those related to its value chain, both upstream and downstream, including its products, services and business relationships. These relationships are not limited to direct contractual relationships, but extend to all relationships within the value chain.

As part of the 2024 materiality analysis, the Group’s operating context was thoroughly examined, taking into consideration the phytocosmetics and phytotherapy sector, business activities along the entire value chain, and the sustainability context. The actual and potential impacts were identified and evaluated in terms of their importance throughout the value chain. The most significant impacts were then given priority in order to make it easier to identify material issues.

In fact, the importance of an actual impact is determined solely by its severity, whereas the importance of a potential impact is determined by both its severity and its likelihood of occurrence.

To assess the severity of an impact, we considered three elements:

• Severity scale – It measures the intensity of the impact and the external context in which it occurs, including the geographical context.

• Scope of application – It assesses how widespread the impact is and whether it can be measured along the value chain.

• Irremediability – It indicates the degree of difficulty in repairing the damage caused by an adverse impact.

Each identified impact was classified according to its severity and likelihood as one of the following three categories: very significant, significant or insignificant. The impacts that were considered to be very significant and significant were categorised as material impacts.

The reporting process and calculation methods

Special data collection forms and interviews were used to collect qualitative and quantitative social and environmental data annually, with the active involvement of the relevant company departments. The main calculation methods and assumptions used to derive the performance indicators reported in this document are listed below, in addition to those already mentioned in the text.

Emissions data:

The main sources used for the calculations are as follows:

- Energy consumption: The Group’s energy consumption was calculated using the Giga Joule (GJ) as the unit of measurement. The conversion factors published in the database of the UK Department for Environment, Food and Rural Affairs (DEFRA) for the three-year period from 2022 to 2024 were used to standardise the different energy carriers.

- Direct energy emissions (Scope 1) and indirect energy emissions (Scope 2): GHG emissions were calculated in terms of CO2 equivalents, in line with the GHG Protocol’s guidance. The Group includes the following emission categories in this document:

ڤ Direct emissions Scope 1: for natural gas, petrol and diesel consumption, DEFRA’s emission factors for the three-year period 2022-2024 were used); for refrigerant gas losses from air conditioners, the GWP provided by DEFRA for the three-year period 2022-2024 was used.

ڤ Indirect emissions Scope 2:

- Location-based: these emissions were calculated by multiplying the amount of electricity purchased from the national grid by the emission factor provided by the European Environment Agency (EEA) for the years 2022 and 2023.

- Market-based: these emissions were calculated using the factors provided in the Association of Issuing Bodies (AIB) document, “European Residual Mixes”, which is updated annually.

Personnel data

For each reporting period, the calculation of L’Erbolario Group personnel (broken down by gender, contract type and type of work) is based on data received from L’Erbolario SB, L’Erbolario Franchising and Erbamea and is expressed as the number of persons as at 31 December.

The turnover rate is calculated by dividing the number of employees who resigned during the year by the total number of employees.

The occupational accident rate was then calculated using the following formula: number of accidents/hours worked*1,000,000. Commuting accidents are not included in the calculation of frequency rates.