2022 Annual Sustainability and Impact Report

LETTER TO STAKEHOLDERS

DearReaders,

In 2021, our company embarked on a journey to become a Società Benefit, making a formal and substantial commitment to generating benefits for society and the environment through its business activities. Indeed, we believe that in addition to achieving a good profit, it is essential to generate a profit that does good. This is a very important step, a fundamental one in our entrepreneurial history: it is the moment in which our company, conscious of the role it plays in the entire ecosystem of its business, directs its strategies towards generating positive value for the community. Profit remains the goal, supported by a commitment to common good, from design to creation of extraordinarily unique products.

IPE bases its work on the value of knowledge and continuous pursuit of contemporary beauty, confirming its role as a creator of high-quality, tailored design projects and products, and develops its design contribution drawing on a specifically Italian sensibility: our country’s land has a wealth of significant and exceptional environmental examples, since the landscapes and places of Italy are often recognised as perfectly representing a “culture of inhabiting” and – more generally – a “culture of living”. Based on this assumption and our natural ability to create a true philosophy of living, we like to think of

our design approach as a happy blend of our culture of origin and that of the many extraordinary countries in which we have the opportunity to operate, in order to give our work the scope and depth of a meaningful gesture for all contemporary communities. In 2004, with its Visionnaire brand, IPE created a distinctive style characterised by bold experimentation with materials, unexpectedly balanced volumes and signature motifs that celebrate the maison’s all-Italian origins. The brand is an ideal partner for bespoke projects in residential and contract contexts, in the luxury hotel industry, as well as in the yachting and aviation sectors. It has more than 30 single-brand stores worldwide and an extensive network of department stores and multi-brand outlets, attesting to the appeal of exclusive designs and products resulting from the outstanding craftsmanship of Italian artisans. Visionnaire celebrates craftsmanship as one of the highest expressions of human work and talents, a vehicle for creativity and a testimony of art, to transform history into the future, tradition into innovation and sustain excellence through eternity. Our craftsmen infuse passion and experience into the creation of unique objects – the result of a genuine labour of love and judgement – that can be passed down through generations as a testament to beauty and the pursuit of perfection.

Our company has developed its business model around the concept of meta-luxury, i.e. the pursuit of uniqueness and excellence beyond the value of material and form, supporting a network of craft districts throughout Italy.

Our customers create an elective affinity with the products, a relationship that endures over time because, if treated with love, they become an irreplaceable part of our lives. If this happens, then it means that our objects are the tangible result of extraordinary imagery with which people identify and from which they even draw inspiration and creative freedom. Visionnaire has understood that products are conveyors of value first and a beautiful creative manifestation second. This broad concept, encapsulated in the expression “meta-luxury”, i.e. “beyond” luxury, invites us to discover everything that exists beyond the product itself – as it appears to us – but also leads us to delve into the origin of the raw materials and therefore traceability, production processes, the technological innovation they represent, the craftsmanship that has defined their uniqueness, and the whole virtuous ecosystem that enables the creation of an object that delivers value.

All this means creating timeless objects that are not bound to trends or seasonality, but positively express the spirit of the time and, indeed, can perform a transformative action.

IPE redefines its business proposal first and foremost by committing to the use of low-impact, low-carbon, and more ecosystem-friendly materials, broadening the industry’s concept of innovation. Not only does the company invest in research and experimentation of original, harmonious and even eclectic materials, but it is also responsible for the community in which it operates ethically, in pursuit of the common good. Wellbeing and sustainability translate into the choice of innovative high-performance fabrics and leathers, which, through recycling and low-impact production processes, represent a new technological and sustainable milestone. The company’s articles of association, as of December 2021, define our new business purpose: by becoming a Società Benefit, IPE’s productive economic activity also seeks to reduce negative impacts and encourage positive effects on people, communities, local areas and the environment in general. This is a truly revolutionary redefinition of our company mission. It means integrating the technical knowledge of our artisans, their ingenuity and experience into our entrepreneurial intent, while embracing Made in Italy ingenuity and taste in the pursuit of beauty. Today, IPE’s mission encompasses protection of the environment and communities throughout the production cycle, development of sustainable and recyclable products, and active participation in environmental decision-making.

At IPE, we intend to continue improving our production performance and to succeed in doing so as a result of our acquired awareness of the importance of protecting the natural and human heritage that characterises an area. It is about a rigorous and responsible awareness and an ethical vision of our work, to become true cultural operators.

We regard being a Società Benefit as creativity inseparable from culture: a set of norms, skills, and shared values to pass on to future generations. Our very own customers, by choosing and experiencing our products, end up becoming staunch ambassadors of our entrepreneurial message.

Each workshop embodies the excellence of an artistic craft.

Leopoldo Cavalli IPE-VISIONNAIRE CEO

We are committed to transforming raw materials into responsibly beautiful interior products.

ORIGINS AND BUSINESS MODEL

ORIGINS

Introduction

Visionnaire Home Philosophy, a leading meta-luxury brand in Made in Italy interior design, emerged from IPE (Imbottiture Prodotti Espansi), a company founded by the Cavalli family in 1959.

Now in its third business generation, the holding company is led by Leopoldo and Eleonore with the same innovative and rigorous approach adopted by their grandparents, uncles and above all their father Luigi. In Zola Predosa, in the province of Bologna, the founders revolutionised the furniture sector by introducing the visionary use of polyurethane foam to pad their products.

In the late 1950s, IPE’s entrepreneurial adventure in the furnishing industry – specialising in upholstered furniture made using polyurethane foam – embraced an engineering and design revolution that was remarkable in comparison with the production practices of the time. In 1961, IPE participated in the first edition of the Salone Internazionale del Mobile in Milan with the Mercury armchair, designed by sculptor Rito Valla: art and design found a new and completely unprecedented synthesis in this model.

The new design paradigm was accompanied by a significant change in production practice. In-house production logic was abandoned in favour of a visionary,

substantial innovation: the production line was therefore structured according to the diffused production network model – parcelled out into seamlessly interconnected fractions – bringing together the highly qualified skills of the individual production districts of Italy and enhancing their excellence in the sector.

In 2004, IPE launched Visionnaire, which immediately established itself as a one-of-a-kind brand distinguished by its sartorial flair paired with unique design and execution, interpreting the term “luxury” with significant new meanings.

As the production network expanded, so did the company’s distribution channel: it now operates in more than 55 countries around the world with more than 30 single-brand stores and a network of department stores and multi-brand stores worldwide.

Since 2014, the company has been under the control of Ergon Capital Partners III, an investment fund mainly underwritten by the Belgian investment company Groupe Bruxelles Lambert (GBL) listed on the Euro Next market. In December 2021, IPE Srl became a Società Benefit by amending its articles of association and corporate purpose to commit to bringing both economic profit and benefits to the ecosystem of which it is an integral part.

MISSION AND VISION

Meta-luxury

Visionnaire bases

Uniqueness

Today, Visionnaire is one of the undisputed leaders in meta-luxury design thanks to its new approach to interior design that is not strictly product-related, but represents a true lifestyle. The brand’ take on interior design is not standard, offering a one-of-a-kind solution and creating customised spaces to meet customers’ needs, style and taste.

establishing itself as a creator of design projects and products with the highest level of craftsmanship, promoting and enhancing the production of local artisans in Italy.

Our sartorial manufacturing also proves and affirms the idea of repeatable uniqueness: singularity that multiplies while preserving the same charge of quality and value in each piece; each of our products is singular, unrepeatable, like an art object, though reproducible; there are no copies of an ideal original, but examples made with the same obsessive attention to detail as a masterpiece.

Materials

Quality

The ultimate and highest perspective of our design action is to ensure a better quality of life for future generations. The three dimensions of design, art and low environmental impact therefore converge in outstanding sartorial design woven into our own corporate culture, increasingly conscious and capable of radically embracing human talent and crafts.

The meta-luxury of content and values finds application in the responsible use of materials, in technological research that the company pursues with commitment and in investments aimed at improving its production chain efficiency. Indeed, Visionnaire relies on a network of more than 30 artisan hubs spread across the country, through which it creates extraordinarily unique objects: the combination and mixture of materials, along with the hands of the artisans that test, perfect and create new material and compositional solutions, define the identity of each individual product, making it unique and non-reproducible.

its work on the value of knowledge and continuous pursuit of contemporary beauty,

SUSTAINABILITY JOURNEY

Sustainability is a virtuous system that extends from production processes to social and local responsibility. When, in 2017, IPE chose to embark on a path towards lower impact – comprehensively rather than episodically – it immediately embraced the biggest challenge, namely the involvement of production partners in the process of sustainable evolution.

For over ten years, IPE has been committed to protecting the environment and its workers, developing environmental enhancement projects and gaining accreditation through certifications and leading industry standards. The path to environmentally friendly development implies continuous work, which the company is determined to pursue with perseverance and dedication.

IPE draws up its own Code of Ethics in order to foster a working environment inspired by respect, fairness and collaboration, involving employees and collaborators and aiming at defining the set of values and responsibilities taken on and shared by the company. The Code of Ethics is a founding component of the organisation, management and control model adopted by the company pursuant to Legislative Decree No. 231/01.

Breath Collection: technological innovation aimed at optimising the use of materials is applied to the creation of Visionnaire’s best-selling product, the Kerwan dining table. The special feature of this table is the curvature of the marble legs obtained from a slab by exploiting the stone’s elasticity, instead of being cut from a block, thus avoiding material wastage.

2011

The company attains ISO 9001 certification for its Quality Management System, which guarantees compliance with quality management standards and enhancement of Italian savoir-faire, building on sixty years of Italy-based manufacturing.

2017

The company launches its Greenery Collection Green Heart Re-Evolution, an innovative project based on the brand’s strengths, i.e. a series of iconic upholstered items reimagined with a fresh take. Instead of conventional materials, natural counterparts are selected (e.g. cherry stones for cushioning or rubber derived from plants rather than petroleum).

To mark the 60th anniversary of IPE and the 15th anniversary of Visionnaire, the art volume Decàlogo is published, a manifesto outlining the brand’s ten founding values. Ten manifesto creeds. Each of the core concepts of the Visionnaire philosophy is defined by a sequence of words that expresses a vision and has the force of a creed.

2019

Attainment of the FSC™ Forest Stewardship Council™ C147146 Certification and PEFC Programme for Endorsement of Forest Certification for responsible forestry management, demonstrating the company’s desire to ensure that used wood comes from legal felling and certified supply chains. In the same year, the company also offers a selection of products from the Anniversary collection with these important certifications.

SUSTAINABILITY JOURNEY

IPE Srl, following the amendment of its articles of association, becomes a Società Benefit. The company commits to social and environmental goals of common benefit in conducting its business in the medium and long term.

2021

The company presents its Re-Generation Book at the Salone del Mobile in Milan, a Visionnaire research project entirely dedicated to environmentally friendly fabrics and leathers. In this special selection of materials, each individual fabric is accompanied by a technical data sheet containing details on composition, spinning, weaving, cultivation systems and traceability, providing an insight into the product’s life cycle.

Starting with Beauty, a two-year collection and a continuously evolving project, the brand introduces a number of high-performance upholstery textiles for outdoor and indoor use, obtained from reused materials in order to achieve a significant reduction in carbon and water emissions.

2021/22

At the Salone del Mobile in Milan Visionnaire unveils Volare, a new living solution designed to express a true domestic philosophy and a sartorial attitude to the creation of unique projects. The stand is built with reduced environmental impact, by reusing portions of the stand from the previous edition.

2023

2022

Included in the thirteenth edition of the GreenItaly 2022 Report, prepared by the Symbola Foundation and Unioncamere, IPE Srl is listed among the Italian companies that successfully compete by focusing on sustainability, unity and beauty.

Specifically, portals and partitions made of recycled glass, fully recycled ceramic flooring and parquet flooring are reused, accounting for 40% of the stand materials. Taking a climate-responsible approach, the brand neutralises the emissions caused by installations and various events linked to the Salone del Mobile, generating credits to support other important forest conservation projects in Brazil, “The Envira Amazonia Project” a REDD+ initiative, validated and verified according to VCS and CCB standard-certified.

MATERIALITY ANALYSIS

STAKEHOLDER ENGAGEMENT

In carrying out its activities, every company interacts with the organisational, economic, environmental, and socioeconomic context in which it operates. Interactions with internal and external stakeholders are therefore continuous and constant.

Materiality analysis consists of identifying the material issues that the organization decides to report on within its Sustainability Report.

The purpose of the analysis is to qualitatively and quantitatively examine the company’s environmental and social impacts by involving and creating engagement with stakeholders. The stakeholder engagement process involved both internal stakeholders of IPE Srl and external stakeholders relevant to the company’s business and sustainability issues. Interviews were conducted with Company Management in order to investigate the main elements of its activities, establish interest in sustainability issues, and identify relevant projects and initiatives that could be the focus of specific reporting. Additionally, anonymous multiple-choice questionnaires were prepared for internal and external stakeholders to ascertain perceptions of the company’s activities and understand interest on sustainability issues. Finally, the outcomes of the questionnaires were shared with Company Management.

MATERIALITY MATRIX

The initial phase of business context identification, including type of business, business relationships and stakeholders, which provides a high-level overview of the actual and potential impacts generated by the organisation, is followed by a fundamental phase of significance assessment.

A list of impacts generated, analysed and evaluated according to a threshold principle set by the organisation itself, allows Company Management to prioritise actions aimed at firstly resolving negative and actual impacts and, subsequently, mitigating or preventing potential impacts.

The significance evaluation phase helps the company assess how it contributes, or could contribute, to sustainable development through its activities or future goals. The significance of an actual negative impact is determined by its severity, or rather, the severity/ probability combination, which is commonly referred to as “risky” and, therefore, a priority.

The significance of an impact is the only criterion for determining whether a topic is material for its own reporting. The materiality matrix represents the material issues determined by IPE Srl and its stakeholders following a comprehensive analysis to identify its actual and potential impacts with respect to its sector. In the

first phase of the assessment, the organisation takes into account the relevance of its business, business relationships, stakeholders and the sustainability context of all bodies it controls or in which it has an interest, using information from its own or third-party assessments of ESG issues.

Its graphic representation is the result of a process – carried out in the first half of 2023 – of consultation, analysis and assessment of the relevance of sustainability aspects or issues defined on the basis of a list drawn up by Progesa S.p.A. within the ESG Strategic Plan, in the form of list of topics appropriate to the company’s activities and ensuring coverage of all sustainability aspects. The issues found to be relevant to the organisation and its stakeholders are those designated as worthy of reporting.

COMPREHENSIVE MATERIALITY MATRIX (0-5)

Relevance for the organisation

RELEVANT ISSUES FOR IPE AND ITS STAKEHOLDERS

Below, what is represented in the second graph with focus 2.5-5, is the outcome of a significance analysis of the material issues found to be most impactful for both the organisation and its stakeholders and therefore worthy of reporting.

The materiality analysis follows the “GRI Standard Inspired” approach, which refers to the requirements of the Global Reporting Initiative standards for sustainability reporting. In some cases, data beyond the details required by GRI standards were also included for certain special aspects of IPE Srl. The Global Reporting Initiative (GRI) is an international body established to define standards for reporting on organisations’ sustainable performance and the GRI Standards are the reporting framework for organisations. The GRI standards consist of universal standards and three specific standards for the economic, environmental and social areas.

MATERIALITY MATRIX FOCUS (2,5-5)

• INNOVATION, R&D

• PRODUCT QUALITY AND SAFETY

• CUSTOMER ENGAGEMENT AND SATISFACTION

• FOCUS ON PRODUCT LIFE CYCLE AND CIRCULAR ECONOMY

• INNOVATION AND R&D

• PRODUCT QUALITY AND SAFETY

Purpose of common benefit Specific and characteristic goal

Purpose of impact

Improving people’s quality of life through creative research and dissemination of beauty in living environments, promoting craftsmanship and excellence, driving innovation and circulation of art and culture.

LIVING SPACES AS WELLNESS SPACES

Designing living places made unique by exquisite products that are conceived as an organic part of a whole, through a production process that guarantees repeatable uniqueness and the highest quality

Maximising product life by introducing changes to production processes and materials

Promoting and disseminating a cultural project within the sector, to contribute to reflections around the role of art and creativity

Development of a survey for customers and retailers including:

- product evaluation and relationship with the company (performance)

- evaluation with respect to improving wellbeing (impact)

Based on the findings, IPE will explore new collections.

Tracking of

- number of CLAIMS

- number of Corrective Actions

Based on the findings, IPE will examine necessary improvements.

With regard to product life, a project to extend warranty on purchased products for end users and a goods maintenance schedule is under consideration.

The following is a list of the issues that emerged as relevant from stakeholder questionnaires and discussions with Company Management in relation to the aims of common benefit dealt with later in Part I, as well as to the specific goals and projects of IPE Srl.

RELEVANT MATERIAL ISSUES

• “FIGHT AGAINST COUNTERFEITING

• INNOVATION AND R&D

• PRODUCT QUALITY AND SAFETY”

Purpose

Purpose

Improving people’s quality of life through creative research and dissemination of beauty in living environments, promoting craftsmanship and excellence, driving innovation and circulation of art and culture.

Designing living places made unique by exquisite products that are conceived as an organic part of a whole, through a production process that guarantees repeatable uniqueness and the highest quality

Maximising product life by introducing changes to production processes and materials

PROJECT

“Collection of data and information on - product performance (quality, certifications, etc.)

- product, material and/or process innovations introduced”

• “INNOVATION AND R&D

• PROTECTION AND STRENGTHENING OF BRAND REPUTATION

LIVING SPACES AS WELLNESS SPACES

Promoting and disseminating a cultural project within the sector, to contribute to reflections around the role of art and creativity

“Performance tracking of -all cultural events and initiatives (wunderkammers, publications, etc.)

- external acknowledgements (awards, exhibitions organised by third parties, thirdparty publications, etc.)”

Actions taken on raw materials:

• “FOCUS ON PRODUCT LIFE CYCLE AND CIRCULAR ECONOMY

• RESPONSIBLE SOURCING AND CONSUMPTION

• INNOVATION AND R&D”

Reducing negative environmental impacts in the luxury furniture sector by supporting research and development on sustainable materials and processes, while consolidating a business model that minimises waste and consumption.

PROTECTION OF NATURAL HERITAGE

Supporting research and development on materials and production processes

- initiating the process to gradually increase the share of FSC-certified wood

- initiating the process to gradually increase the share of leather or fabrics certified as organic or recycled

Continuing to pay close attention to possible future sustainable materials.

• “ECO-DESIGN OF POINTS OF SALE

• RESPONSIBLE SOURCING AND CONSUMPTION”

Consolidating and disseminating a business model that minimises waste and consumption

Measuring Scope 1 and 2 CO2 emissions (direct GHG emissions from installations within the organisation’s boundaries due to the use of fossil fuels and the emission of any greenhouse gases into the atmosphere + indirect GHG emissions from the generation of electricity, heat and steam imported and consumed by the organisation).

RELEVANT MATERIAL ISSUES

• “RESPONSIBLE SOURCING AND CONSUMPTION

• USE AND PROMOTION OF LOCAL SUPPLIERS”

PURPOSE OF IMPACT

• “ECO-DESIGN OF POINTS OF SALE

• RESPONSIBLE SOURCING AND CONSUMPTION”

Purpose of impact

Purpose of common benefit

Reducing negative environmental impacts in the luxury furniture sector by supporting research and development on sustainable materials and processes, while consolidating a business model that minimises waste and consumption.

PROTECTION OF NATURAL HERITAGE

Specific and characteristic goal

Consolidating and disseminating a business model that minimises waste and consumption

PROJECT

Measuring Scope 3 Co2 emissions (indirect emissions due to the company’s own activity, but produced by others, e.g. suppliers. This category includes emission sources that are not under the company’s direct control, but whose emissions are indirectly due to the company’s operation).

Gradually increasing the amount invested in purchased Carbon Credits

• “FAIR REMUNERATION OF THE SUPPLY CHAIN

• USE AND PROMOTION OF LOCAL SUPPLIERS

• PROTECTION AND PROMOTION OF CRAFTSMANSHIP”

• “CORPORATE WELFARE

• EMPLOYEE SATISFACTION”

Maintaining and developing deep connection with the local area, successfully enhancing its uniqueness and pursuing opportunities for shared growth with the local business community through the diffused production network model.

THE HERITAGE OF KNOWLEDGE

Supporting the business community through the diffused production network model, reiterated commitment to growing together and adoption of a mutually beneficial and longlasting system

Investing in knowledge, supporting experimentation, and protecting unique craftsmanship

Development of a survey and KPI panel for craftsmen aimed at

- measuring the level of satisfaction and recognition of their work

- assessing the supplier’s level of growth as a result of IPE orders

- collecting performance data (turnover with IPE, employment, longevity...)

Evaluating the possibility of bonuses for nonexecutives with dedicated welfare schemes

• “CORPORATE WELFARE

• EMPLOYEE SATISFACTION”

• “CORPORATE WELFARE

• EMPLOYEE SATISFACTION”

Improving the well-being of in-house human resources through various forms of corporate welfare tools.

Campa health insurance fully integrated by the company and with the possibility of a small contribution from employees to also cover family members

Development of employee survey

SUSTAINABLE DEVELOPMENT GOALS AND APPLICABILITY

SUSTAINABLE DEVELOPMENT GOALS

Awareness and sensitivity to environmental issues, particularly to the consequences of climate change, have driven companies around the world to confront increasingly daunting challenges.

In 2015, the United Nations approved the Global Agenda for Sustainable Development and its 17 Sustainable Development Goals (SDGs), divided into 169 targets to be achieved by 2030.

it is committed to constantly enhancing the working environment, with the aim of improving employees’ physical, social and economic health and well-being, as envisaged in goal 3; it also aims to improve individual employees by offering training courses, as envisaged in goal 4;

by promoting gender equality, developing individual employees’ capabilities and ensuring equal access to leadership roles, the company will contribute to the achievement of goals 5 and 10;

The Company intends to pursue the following actions in order to create shared value:

through the installation of systems, policies and strategic choices in the short and long term, the company intends to minimise water consumption, with potential impacts on goals 6 and 14;

through all its investments in environmental sustainability, the company demonstrates its commitment to reducing the consumption of energy from non-renewable sources:

this important innovation, coupled with a continued commitment to energy efficiency and monitoring, can contribute to goal 7;

as required by goals 8 and 11, the company supports the evolution and improvement of workplaces, increasingly stimulating workers and establishing a better general climate, so as to increase welfare and consequently productivity and economic growth in the community;

through supply chain certifications and monitoring of its suppliers, the company guarantees its employees’ welfare and adequate remuneration, the quality of the raw materials it responsibly sources and the transparency of the value chain as stipulated in goals 1, 9 and 12;

the company promotes the eco-design of its points of sale; it pays attention to the life cycle and emissions generated by its products and their movements; it uses local suppliers; it measures the impacts generated by the entire value chain and works constantly to offset them. These are some of the actions promoted by IPE Srl that can concretely help reduce the impact of ongoing climate change and protect life on earth, which demonstrates commitment to goals 13 and 15.

IPE Srl is currently mainly committed to 14 of the 17 SDGs.

Sustainable Development Goals and applicability

SDGs

R&D

PROTECTION AND PROMOTION OF CRAFTSMANSHIP

ECO-DESIGN OF POINTS OF SALE

SUSTAINABILITY STRATEGY

FOCUS ON PRODUCT LIFE CYCLE AND CIRCULAR ECONOMY

USE AND PROMOTION OF LOCAL SUPPLIERS

RESPONSIBLE SOURCING AND CONSUMPTION

FIGHT AGAINST COUNTERFEITING

CUSTOMER ENGAGEMENT AND SATISFACTION

PROTECTION AND STRENGTHENING OF BRAND REPUTATION

FAIR REMUNERATION IN THE SUPPLY CHAIN

EMPLOYEE SATISFACTION

CORPORATE WELFARE

VISIONNAIRE PRODUCTS

PRODUCT QUALIT Y, SAFETY AND SUSTAINABILITY

Since 2004, Visionnaire has created a distinctive style distinguished by bold experimentation with materials, unexpectedly balanced volumes and unmistakable motifs that celebrate the maison’s all-Italian origins.

Re-Generation:

and the ongoing pursuit of contemporary beauty. It has established itself as a creator of design projects and products with the highest level of craftsmanship, promoting and enhancing the production of local artisans in Italy.

Responsible use of materials, technological research and continuous innovation, neutralisation of emissions, investments to make the entire production chain more efficient, and a focus on the quality of life of its craftsmen are some of the core values upheld by IPE Srl products, including:

A careful selection of innovative, high-performance fabrics and leathers guarantees sustainability and wellbeing. Through low-impact processing and recycling, the company reaches a new technological and sustainable milestone.

Hence the idea of the Re-Generation project, a book entirely dedicated to fabrics and leathers that meet low environmental impact criteria. In this special selection of materials, each individual fabric is accompanied by a technical data sheet containing details on composition, spinning, weaving, cultivation systems and traceability, providing an insight into the product’s life cycle. These new fabrics include Paddington, an eco-friendly fur made from recycled PET that is itself recyclable.

high-performance fabrics and leathers

The brand bases its business on the value of knowledge

Padding made using innovative processes

A more sustainable production approach is one of the goals of the brand, which is committed to researching padding made through alternative and less environmentally impactful processes. The new foams are obtained through the use of a new special polyol synthesised with carbon dioxide.

This is an innovative raw material for the production of high-quality flexible polyurethane foams. Thanks to this material, carbon dioxide is reintroduced into the production chain, helping to reduce the use of fossil raw materials such as oil, while respecting and protecting the environment. These new foams deliver excellent breathability and ensure low permanent deformation. They have physical and mechanical properties that are equivalent to conventional foams.

Visionnaire introduced these new paddings in the upholstery of one of its iconic seats, the Ca’ Foscari sofa by Alessandro La Spada, winner of the 2022 Archiproducts Design Awards in the Sustainability category.

Leather with innovative properties

Tanning of hides is part of a centuries-old production process that starts with livestock management and ends with the manufacture of products for consumers.

Animal leather, which would otherwise be discarded and disposed of, thus badly impacting the environment among other things, is used in other production processes.

The leather subsequently again enters this cycle in which tanning waste becomes a fundamental part of further production applications. It is one of the oldest forms of recycling.

One of these leathers is Eco-leather, which is a regenerated product obtained from waste treatment, reduced to powder and then reconstituted to a thickness of 2 mm. Visionnaire’s constant research on metal-free processed leathers has led to the selection of a new and innovative leather – Living – of bovine origin and made through a careful metal-free and biodegradable biological tanning process according to UNI EN 15987. This is the material chosen for the Egoiste chaise-longue by Alessandro La Spada.

FSC C147146 Forest Stewardship Council Certification and PEFC Program for Endorsement of Forest Certification

Visionnaire obtained these relevant certifications in 2019 and joined the global project of steering the market towards reliable forest management and ensuring that the wood used comes from legal felling and certified supply chains.

Starting this year, the brand is offering a selection of products made exclusively of FSCcertified wood, including the Aurora console table, the Ruben low table and Jet Plane mirror by Steve Leung, and the Marty console table and low table by Marco Piva.

Visionnaire’s cultural vision is based on increasingly direct and conscious decisions intended to defend natural heritage. Having defined its corporate direction in the mission statement contained in the Decàlogo, the brand has expressed its intention to design and create products that exemplify extreme quality and a responsible commitment to the environment.

Since 2011, Visionnaire has been ISO 9001-certified for its Quality Management System, guaranteeing compliance with quality management standards. IPE-Visionnaire products are shipped with accurate labelling in accordance with current legislation and with proper instructions for safe use.

Fossil stone: ancient wood

The company offers products made of unique, high-quality materials with the everchanging shades that only nature can create. These include the beautiful ancient wood from submerged forests, which have been enveloped and protected under layers of clay and preserved by nature for centuries, only for them to re-emerge today with new, unprecedented beauty. The brand uses this unprecedented material for some of its new creations such as the low Drusilla sideboard designed by Fabio Bonfà – featuring a combination of natural materials: undulating ancient Calacatta marble, fossil wood and metal – and Villa D’Este designed by Mauro Lipparini to celebrate the social dimension of living.

Marbles: production techniques and technological processes

The brand strongly focuses on researching cutting-edge technologies for processing and enhancing marble: this material symbolises the natural element, which is fundamental in the brand’s creations.

The Kerwan dining table, designed by Alessandro La Spada, is distinguished by the curvature of the marble legs obtained from a slab by exploiting the stone’s elasticity, without cutting it into a block, thus avoiding considerable material wastage. Thanks to innovative processing techniques that highlight the stone’s natural veining, Visionnaire guarantees unprecedented and very natural results. A technique called Linfa Vitale for example, is performed by micro-relief of the finest veins. These techniques can be applied to marbles that exhibit certain metamorphic properties and, depending on their appearance, define the name of the process: Sea Waves a vein-enhancing technique for Confusion Dark marble; Snakeskin, a micro-relief and wavy surface technique for Fior di Bosco marble, as well as Crocodile skin for Port Laurent marble; and Galuchat, a double engraving and micro-relief technique for Black&Gold marble.

On the experimentation front, Visionnaire uses the Azerocare process for some of its products, a treatment that permanently protects marble from staining and corrosion with a glossy finish. Azerocare works on marble

surfaces that have come into contact with foodstuffs, acids and organic substances without altering the tactile perception or the inherent, characteristics and colours of the natural stone. Surfaces become waterproof and easy to clean, while preventing proliferation of bacteria. This process was tested for the first time on the Kobol wellness unit, made with the ethereal texture of Dover White marble, on the Leonardo wellness unit, enhanced by the expressive power of Dalmata marble, and finally on the Kerwan dining table, made with Black&Gold marble.

The Cameron table, designed by Alessandro La Spada, features a sculptural base obtained by joining two specular marble blocks, preventing any material wastage. Processing the marble into blocks makes it possible to create two completely symmetrical bases.

PMMA: Secondary raw

materials

Visionnaire has experimented with and designed a line of lamps created with a regenerated material: a special secondary raw material, PMMA, which is processed in several steps and is then ready for a new life.

Inspired by gemmology, Lucente di Gupica investigates the behaviour of light and the particular refractions it creates when it encounters the stone’s faceted and symmetrical surfaces, causing striking DIFFUSED and kaleidoscopic lighting effects.

SUPPLY CHAIN AND RESPONSIBLE SOURCING

The suppliers of IPE Srl are all considered qualified. In 2017, the company’s Purchasing/ Production Department completed the process of analysing and managing the entire supply chain of the organisation. In parallel, new geographically ideal suppliers were introduced in 2020/2021 to support the prime suppliers, and others that had played a secondary role in past years were strengthened.

In numerical terms, the qualification scores of IPE’s main suppliers show that the standard is high, especially with regard to the most important suppliers; this assessment, carried out in accordance with ISO 9001, is now more effective, since greater emphasis is placed on objective qualification, taking into account supply service, economic competitiveness and product quality, and the number and economic value of non-conformities. The results of the evaluation, which considers all suppliers with at least 0.70% supply cost out of total costs, give an

and which permanently work with the company. In this respect, therefore, the company also contributes to the growth of Made in Italy by manufacturing almost all of its products in Italy, promoting Italian craftsmanship. To support this vision and working closely with its suppliers (around 50 craftsmen all located in Italy), the company asked them to fill in an Environmental, Social and Governance (ESG) self-assessment questionnaire. The questionnaire had two main goals: to increase suppliers’ awareness of the environmental and social impacts of their activities, and to start collecting the data needed by Visionnaire’s research and development team for work on production methods that reduce the environmental impact of the company’s projects.

Criteria concerning suppliers’ social and environmental practices and performance are formally monitored by the company:

A sustainable end product is guaranteed by the sustainability of the individual components of the supply chain. When considering the main suppliers of IPE Srl in terms of turnover, size and craftsmanship (around 70% of the procurement budget is spent on local suppliers),

compliance with local laws and regulations, including those concerning social and environmental performance; good governance practices, including policies on ethics and corruption; positive practices that go beyond legal requirements; certification by external bodies of positive social and environmental performance.

Finally, the Company recently conducted an analysis of its value chain, which includes not only suppliers, but also services and materials, to identify the most significant risk areas in terms of greenhouse gas emissions. It therefore acquired certified carbon credits to offset some of the greenhouse gas emissions originating from its supply chain. All this demonstrates that today’s customers do not buy furniture just for its aesthetic appeal, but for its values: Made in Italy excellence, ethical suppliers and a commitment to reducing impact on the environment – this is the true meaning of meta-luxury, the new luxury.

more than 60% are long-standing suppliers that have been working with IPE Srl for more than 10 years

IQF (Supplier Qualification Index) of 83.22%, which is a very positive figure.

RESEARCH, DEVELOPMENT AND FOCUS ON MATERIALS

In the second half of 2022, IPE Srl completed development work on the First Class project, i.e. a web-based Configure, Price and Quote (CPQ) and e-commerce information system for the full digitisation of the product catalogue of the Visionnaire Home Philosophy collection: some 2,800 items, and the related material sample book, more than 400 different materials in over 6,000 colour variants. To date, all customer quotation management is handled on the system implemented by IPE. The main goals of the project include:

transparent and straight-forward pricing for the worldwide sales force and potential end-consumers with regard to all Visionnaire Home Philosophy products which, as is well known, offer the option of a high degree of customisation in terms of upholstery (leather, fabrics), finishes (lacquered wood and metal part finishes) and decorative elements (embroidery, worked glass, marble, mosaics, etc.); increasing the number of customer proposals through direct involvement of the sales force (agents, dealers, architects) in the use of the application; digitising sales processes related to the proposal stage and approval processes related to requests for non-standard customisation or exclusive commercial conditions.

The project’s main achievements include:

1600

quotes delivered by the sales network with the software, of which more than 500 were accepted and “won” as customer orders

2800

Visionnaire catalogue products entered into the system, with effective parametric price lists, of which more than 2400 include a 3D configuration model

78

active users managing customer proposals through the software

1700

Automated workflowbased management of more than ETO (Engineering To Order) special product requests, of which more than 1300 approved

Moreover, September 2022 saw the start of the in-house creation of a new, more advanced version of the CPQ software with additional features. The project named Digital Visionnaire World 2022-2023 consists of an upgrade of the digitisation of business processes of the worldwide sales network for digital development on the former platform.

In particular, the project has several operational goals concerning design and implementation of new automated features for the sales network, such as multi-currency and exchange rate management via the CPQ platform, digitisation and tracking of the approval workflow required for each individual proposal from CPQ users working as resellers, creation of customised offers for their end customers, new evolutions and changes to the approval workflow for ETO (Engineering To Order) requests, settings for up-selling configuration automatisms, i.e. new product proposals linked to choices previously made by the user; new features for largescale resellers, integration of the CPQ platform with the corporate website, more extensive technical commercial information, and a portfolio of digital and advertising images. Finally, a 3D optimised graphical user interface in order to consistently improve user experience by introducing augmented reality (AR) features.

SOCIAL RESPONSIBLITY

PROTECTION OF WORKERS’ HEALTH AND SAFETY

Employee health and safety is an essential responsibility for IPE Srl.

The company is directly responsible for protecting workers’ health and safety, not only by eliminating workrelated injuries and illnesses, but also by minimising any unsafe conditions that may exist in the workplace. It should be noted that the Company, as at the reference date of this report and following its completion, has no situations of ascertained liability to report in relation to fatalities and serious accidents at work, occupational illness or mobbing charges (2020: 0 reported accidents and occupational illnesses; 2021: 1 non-serious accident and no occupational illnesses; 2022: 0 reported accidents and occupational illnesses).

This

as a result of practices, risk evaluation procedures (DVRs), health and safety training courses provided to employees and the presence of rigorous and competent health and safety representatives (RSPPs).

testifies to the great attention paid to protecting workers’ health and safety at IPE Srl

INCENTIVE AND CORPORATE WELFARE SYSTEMS

At IPE Srl, numerous training programmes are implemented to constantly nurture the professional culture and sense of belonging of managers, technicians and workers.

In addition to training, the company allows for a certain number of hours to be dedicated to exploring and developing new collections, learning how to use the First Class configurator and implementing organisational development projects. A bonus system is in place on an individual basis, as well as incentive bonuses for sales employees linked to sales targets. Evidencing commitment to welfare, the Company has not experienced any incidents of discrimination, letters of reprimand, or even incidents subject to disciplinary action by Company Management for years.

The well-being of all employees is promoted in a tangible way, by investing in increasing everyone’s job satisfaction.

STAFF TRAINING AND DEVELOPMENT

IPE recognises that it is vital to develop all its employees through ever-changing stimuli and continuous engagement around the company’s vision and strategies.

Professional development of employees has been promoted for years through training programmes that, in addition to compulsory training, also cover specific tasks, company software and product research and development (CAD). In particular, by holding compulsory courses in accordance with the provisions of Legislative Decree. 81/08. More specifically, training has been focused on: general training, specific training, refresher course for emergency workers, and use of the new IT tools PLM and Configurator.

The company strongly believes in and is committed to unlocking the talents and abilities of each employee.

COMMUNITY SUPPORT AND ENVIRONMENTAL PROTECTION

For several years, IPE Srl and its brand Visionnaire have been making donations in cooperation with institutions, associations and independent organisations with the aim of supporting and sustaining the region and its inhabitants.

Visionnaire supports UNHCR

which protects and assists children, families and all people around the world who have been forced to flee wars, conflicts and persecution by providing them with shelter, water, blankets, medical supplies, education and hope for a future. It also supports Save the Children, for children’s education, the Donor Foundation for aid to Ukraine, the Parish of St. Louis Riale and the Noema Association.

Visionnaire also considers

it very important to conserve and improve our planet’s natural resources. This commitment to ethical and social sustainability is translated into targeted actions that support global organisations striving to protect natural ecosystems and their communities. With Coralgardeners.org, by adopting corals and supporting Sealegacy, we can foster and improve the well-being of the ocean environment. Other key organisations that the company passionately supports include the Orangutan Project, whose mission is the conservation and protection of orangutans’ natural habitat, and WWF, which focuses on the conservation of animal species.

ENVIRONMENTAL RESPONSIBILITY

ENVIRONMENTAL RESPONSIBILITY

Visionnaire has a rigorous and responsible commitment to its local area. This desire to protect natural heritage and human capital – as stated in the art book manifesto, the Decàlogo – takes the form of an awareness that informs and guides the brand’s cultural vision, from the selection of materials to the very last process of the manufacturing cycles, and that reflects a well-defined and heartfelt ethical commitment formalised through its transformation into a Società Benefit.

Energy consumption and emissions

The production process of IPE Srl does not involve activities or plants that generate atmospheric emissions requiring monitoring by relevant authorities. There is also no equipment containing ozone-depleting substances. Emissions originate from corporate vehicles used by the workers for commuting and from the use of methane for heating the premises and the bottling area.

focusing on the brand’s core values: responsibility for its Italian territory, ethical work and top Made in Italy quality. It is also thanks to the decision to express the company’s strategic direction through the mission statements contained in the Decàlogo that the brand has been able to set its own course: the idea of products that embody a concept of absolute quality, combined with a rigorous and responsible commitment to the environment.

Over the past two years, the company has kept its direct and indirect CO2 emissions virtually unchanged despite the increase in productivity and is determined to reduce emissions over the next three years by making targeted investments in sustainability and consumption control: the Carbon Footprint analysis on a consolidated basis was therefore prepared for the first time in 2022 with reference to IPE Srl’s 2021 data.

Visionnaire continues on its path of sustainable growth,

CARBON FOOTPRINT

Carbon Footprint (CFP) is an environmental indicator expressed in terms of CO2 equivalent that measures the greenhouse gas emissions directly or indirectly associated with a product, organisation or service. It is an environmental accounting tool available to public and private entities.

Key advantages include quantification and precise location of the most impactful emission sources and, following analysis, the possibility to identify opportunities for improvement; consequent increase in the ability to control process performance; and obtaining data and information to support strategic choices for the company.

There are primarily two suitable methodologies for determining an organisation’s carbon footprint: the Carbon Footprint of Organisation (CFO), according to UNI ISO 14064-1:2019, and the Organisation Environmental Footprint (OEF), which originates from the European Commission’s Recommendation 2013/179/EU of 9 April 2013.

Initially, in the analytical phase, the organisational and operational boundaries of the system were defined and emission sources were identified:

Scope 1

Direct emissions: electricity, heat and steam generated

Scope 2

Indirect emissions from energy consumption: electricity, heat and steam imported and consumed by the organisation

Scope 3

Indirect emissions: product consumption, transportation, waste disposal, other

This was followed by the quantification phase by area, collecting data by reference year. Application of the chosen calculation model made it possible to measure emissions by area and to process data and indicators by area: Italy (Milan and Bologna), L.A., Miami, HKG, UK, and Dubai. In the final phase, areas for improvement and possible reduction scenarios were identified.

The data collected and analysed for each Scope are explained below.

Scope 1

Natural gas mainly used for heating premises and for hot water

Fuel directly consumed by corporate cars

Scope 2

Electricity used by company sites

Scope 3

Analysis of purchases from suppliers broken down into costs for each material

Quantification of costs attributable to services

Analysis according to square footage of company buildings and company cars with respective average depreciation period

Upstream transport entirely managed by external supplier throughout Italy

Downstream transport partly borne by IPE, partly borne by the Customer, but nevertheless assessed in the CFP on a cumulative basis

In 2022 and 2023, a two-year Carbon Footprint comparison was prepared for the first time on a consolidated basis with reference to 2021 and 2022 data,

based on algorithms used by international best practice. The 2022 data showed an annual CO2 consumption of 17,611.01 tonnes of CO2 equivalent, compared to 16,937.01 tonnes of CO2 equivalent in 2021.

Beyond the activity itself, it is worth emphasising the increased awareness it entails about the origin of materials, energy sources, means of transport used, etc., and in general about the Company’s role within the community in combating climate change.

When looking at the analysis, it should be noted that Scope 2 data increased from 2021 to 2022 as a result of the opening of the Dubai and London shops, which have been operational since September 2021.

AND 2022

MACRO DATA COMPARISON OF IPE SRL’S TOTAL CARBON FOOTPRINT IN 2021

IPE SRL’S TOTAL CARBON FOOTPRINT AND CORRELATION WITH TURNOVER AND SPECIFIC INDICATOR

TOTAL CARBON FOOTPRINT: EMISSIONS IN ORDER OF SIGNIFICANCE

Purchased goods or services

Downstream transportation and distribution

Scope 1

Scope 2

Capital goods

Upstream transportation and distribution

Upstream of energy

In the graph above, the measuring scope takes into account direct consumption, indirect consumption generated by the company, transport of finished products around the world, as well as all impacts from supplier production, ancillary services and finished product storage.

It should be noted that IPE Srl transports at its own expense only 1/5 of the total finished products sold, exclusively by land in Europe (including the UK). For the remaining 4/5 of the products sold worldwide, transport is borne by the customer (by land and sea), but still taken into account in the calculation of emissions.

Based on the findings, in the short term IPE Srl will try to further investigate output data in order to assess and analyse potential improvement measures to reduce emissions.

CARBON CREDITS

A carbon credit is a tradable certificate, i.e. a security equivalent to one ton of CO2 not emitted or absorbed as a result of an environmental protection project implemented with the aim of reducing or reabsorbing global emissions of CO2 and other greenhouse gases. As part of its ongoing sustainable development journey, Visionnaire has created Timeless 2022, a digital catalogue project with a carbon-neutral approach, protecting the environment and offsetting the CO2 emissions that originated from its creation. Direct and indirect emissions

will be neutralised by means of carbon credits (VCScertified - Verified Carbon Standard) through a project aimed at protecting the Brazilian Amazon forest in the Portel area, inside the State of Parà. This kind of project is referred to as REDD+, an English acronym for:

With regard to neutralization of IPE Srl’s 2022 technical catalogue, 3 carbon credits were calculated relating to the VCS977 Para REDD project in Brazil. 265 carbon credits were calculated for the 2022 Salone del Mobile.

“Reducing emissions from deforestation and forest degradation”

THE SPECIFIC PURPOSES OF COMMON BENEFIT

PT. I

THE SPECIFIC PURPOSES OF COMMON BENEFIT

In order to determine where it stands and to continuously improve, a company should be aware of the social, economic and environmental impact of its operations. This awareness converged, together with the systemic approach to business embraced by IPE Srl from the outset, in the company’s goal of becoming a Società Benefit.

Specifically, in December 2021, the IPE Srl adopted the legal status of a Società Benefit pursuant to Law No. 208/2015, paragraphs 376-384, with the aim of pursuing, in the exercise of its business operations, not only profit sharing, but also purposes of common benefit, in order to foster the harmonious growth of its own long-term welfare and that of the context in which it operates.

As set forth in the amended articles of association, common benefit becomes part of the corporate mission. IPE Srl aims to achieve positive effects and limit negative impacts on all of its employees, regardless of roles and contract category, and on the environment in which it operates.

The articles of association in the protocol of 16-12-2021, point 4.3 under “Corporate purpose and scope” reads:

improving people’s quality of life through creative research and dissemination of beauty in living environments, promoting craftsmanship and excellence, driving innovation and circulation of art and culture.

maintaining and developing deep connection with the local area, enhancing its uniqueness and pursuing opportunities for shared growth with the local business community through the diffused production network model.

reducing negative environmental impacts in the luxury furniture sector by investing in research and development on sustainable materials and processes, while consolidating a business model that minimises waste and consumption.

towards all people, communities, areas and the environment, cultural and social goods and activities, bodies and associations and other stakeholders.

The Company is also committed to operating in a responsible, sustainable and transparent manner

ANALYSIS OF SPECIFIC PURPOSES OF COMMON BENEFIT AND RELATED PROJECTS

IPE’s transformation into a Società Benefit (2021) has impacted its core business, the environment and Italian manufacturing, as shortly illustrated below. For each of the above areas, the summary table refers to the years preceding the articles of association amendment.

It includes qualitative and quantitative indicators of goals achieved, partially achieved, or not achieved; for a detailed analysis, please refer to the following chapters and the data contained therein.

Improving people’s quality of life through creative research and dissemination of beauty in living environments, promoting craftsmanship and excellence, driving innovation and circulation of art and culture.

LIVING SPACES AS WELLNESS SPACES

Designing living places made unique by exquisite products that are conceived as an organic part of a whole, through a production process that guarantees repeatable uniqueness and the highest quality;

Maximising product life by introducing changes to production processes and materials;

Promoting and disseminating a cultural project within the sector, to contribute to reflections around the role of art and creativity.

Development of a survey for customers and retailers including:

- product evaluation and relationship with the company (performance)

- evaluation with respect to improving well-being (impact)

Based on the findings, IPE will explore new collections.

Tracking of

- number of CLAIMS

- number of Corrective Actions

Based on the findings, IPE will examine necessary improvements.

With regard to product life, a project to extend warranty on purchased products for end users and a goods maintenance schedule is under consideration.

TBD based on scores given to questions in the survey TBD X

- no. of CLAIMS

- no. of Corrective Actions

- progress of the “extended warranty” and “scheduled maintenance” project

TBD X

PURPOSE OF IMPACT

Purpose of impact

Purpose of common benefit Specific and characteristic goal

Improving people’s quality of life through creative research and dissemination of beauty in living environments, promoting craftsmanship and excellence, driving innovation and circulation of art and culture.

LIVING SPACES AS WELLNESS SPACES

Designing living places made unique by exquisite products that are conceived as an organic part of a whole, through a production process that guarantees repeatable uniqueness and the highest quality;

Maximising product life by introducing changes to production processes and materials;

Promoting and disseminating a cultural project within the sector, to contribute to reflections around the role of art and creativity.

Collection of data and information on

- product performance (quality, certifications, etc.)

- product, material and/or process innovations introduced

- No. of positive outcomes for product certifications

- No. of innovation projects

TBD X

Reducing negative environmental impacts in the luxury furniture sector by supporting research and development on sustainable materials and processes, while consolidating a business model that minimises waste and consumption.

PROTECTION OF NATURAL HERITAGE

Supporting research and development on materials and production processes

Performance tracking of

- all cultural events and initiatives (wunderkammers, publications, etc.)

- external acknowledgements (awards, exhibitions organised by third parties, third-party publications, etc.)

- no. of events and initiatives

- no. of awards and prizes received TBD X

Actions taken on raw materials:

- initiating the process to gradually increase the share of FSC-certified wood

- initiating the process to gradually increase the share of leather and fabrics certified as organic or recycled

Continuing to pay close attention to possible future sustainable materials.

-% FSC wood/wood

-% eco-leather/leather

- % re-generation/ leather

TBD X

PURPOSE OF IMPACT

Reducing negative environmental impacts in the luxury furniture sector by supporting research and development on sustainable materials and processes, while consolidating a business model that minimises waste and consumption.

PROTECTION OF NATURAL HERITAGE

Consolidating and disseminating a business model that minimises waste and consumption

Measuring Scope 1 and 2 CO2 emissions (direct GHG emissions from installations within the organisation’s boundaries from the use of fossil fuels and the emission of any greenhouse gases into the atmosphere + indirect GHG emissions from the generation of electricity, heat and steam imported and consumed by the organisation)

Measuring Scope 3 CO2 emissions (indirect emissions due to the company’s own activity, but produced by others, e.g. suppliers. This category includes emission sources that are not under the company’s direct control, but whose emissions are indirectly due to the company’s operation).

Gradually increasing the amount invested in purchased Carbon Credits

- tonCO2eq Scope 1

- tonCO2eq Scope 2 TBD X

Maintaining and developing deep connection with the local area, successfully enhancing its uniqueness and pursuing opportunities for shared growth with the local business community through the diffused production network model.

THE HERITAGE OF KNOWLEDGE

Supporting the business community through the diffused production network model, reiterated commitment to growing together and adoption of a mutually beneficial and long-lasting system; Investing in knowledge, supporting experimentation, and protecting unique craftsmanship; Improving the well-being of in-house human resources through various forms of corporate welfare tools.

Development of a survey and KPI panel for craftsmen aimed at

- measuring the level of satisfaction and recognition of their work

- assessing the supplier’s level of growth as a result of IPE orders

- collecting performance data (turnover with IPE, employment, longevity...)

- tonCO2eq Scope 3 TBD X

- € of purchased carbon credits TBD X

- years of partnership with IPE

- no. of employees trend

- turnover for IPE TBD X

PURPOSE OF IMPACT

Maintaining and developing deep connection with the local area, successfully enhancing its uniqueness and pursuing opportunities for shared growth with the local business community through the diffused production network model.

THE HERITAGE OF KNOWLEDGE

Supporting the business community through the diffused production network model, reiterated commitment to growing together and adoption of a mutually beneficial and long-lasting system; Investing in knowledge, supporting experimentation, and protecting unique craftsmanship; Improving the well-being of in-house human resources through various forms of corporate welfare tools.

Evaluating the possibility of bonuses for non-executives with dedicated welfare schemes

/ / PT. I - The specific purposes of common benefit

Development

SUMMARY EVALUATION OF GOALS

Development of a survey for customers and retailers including:

- product evaluation and relationship with the company (performance)

- evaluation with respect to improving well-being (impact)

Based on the findings, IPE will explore new collections.

Tracking of

- number of CLAIMS

- number of Corrective Actions

Based on the findings, IPE will examine necessary improvements. With regard to product life, a project to extend warranty on purchased products for end users and a goods maintenance schedule is under consideration.

Collection of data and information on

- product performance (quality, certifications, etc.)

- product, material and/or process innovations introduced

Performance tracking of

- all cultural events and initiatives (wunderkammers, publications, etc.)

- external acknowledgements (awards, exhibitions organised by third parties, third-party publications, etc.)

TBD based on scores given to questions in the survey

- no. of CLAIMS

- no. of Corrective Actions

- progress of the “extended warranty” and “scheduled maintenance” project

- No. of positive outcomes for product certifications

- No. of innovation projects

- no. of events and initiatives

- no. of awards and prizes received

PT. I - The specific purposes of common benefit

Actions taken on raw materials:

- initiating the process to gradually increase the share of FSC-certified wood

- initiating the process to gradually increase the share of leather or fabrics certified as organic or recycled

Continuing to pay close attention to possible future sustainable materials.

-

tonCO2eq Scope 1 - tonCO2eq Scope 2

-

-

Development of a survey and KPI panel for craftsmen aimed at

- measuring the level of satisfaction and recognition of their work

- assessing the supplier’s level of growth as a result of IPE orders

- collecting performance data (turnover with IPE, employment, longevity...)

- years of partnership with IPE

- no. of employees trend

- turnover for IPE

TBD X

TBD TBD X

Development of employee survey

IMPACT ASSESSMENT

PT. II

ADOPTED ASSESSMENT STANDARD

For the impact reporting of IPE Srl Società Benefit, the international B Impact Assessment (BIA) standard was chosen, a reliable and rigorous sustainability benchmark developed by the non-profit B Lab since 2016.

The BIA makes it possible to qualitatively and quantitatively assess the social and environmental impact generated by our company via a questionnaire on the online platform to which our organisation has access in order to measure and share information.

BIA assessment covers five impact distribution macroareas, namely:

Governance

Workers

Community

Environment Customers

The tool adapts to the organisation during the analysis process, as it uses a questionnaire consisting of several hundred questions (scale from 0 to 200) that are accessed depending on the answers provided.

Due to this adaptability, each of the five areas of the BIA has a different maximum score per area, which varies according to the sector to which the company belongs.

BIA ASSESSMENT

For the purposes of this 2022 Impact Report of IPE Srl Società Benefit, the information provided applies to the reporting period from 1 January 2021 to 31 December 2021. The overall score achieved by the company was 72.7.

Below is the analytical report of the performance achieved for each macro-area:

Governance

ANSWERED QUESTIONS

26/28 OVERALL SCORE

15.4

The Governance area, which evaluates the company’s overall mission, ethics, accountability and transparency, received an overall score of 15.4 points. Top management involvement in the creation of the Common Good as the organisation became a Società Benefit in 2021 was considered positive.

ANSWERED QUESTIONS

50/50

OVERALL SCORE

16.5

Workers Community

The Workers impact area assesses the company’s contribution to the financial, physical, professional and social well-being of its employees, tracking aspects such as company benefits, employee health and safety, and professional development opportunities. In this area, IPE Srl scored 16.5 points, as a result of the company’s focus on its employees’ wellbeing by creating a positive and inclusive work environment.

ANSWERED QUESTIONS

59/63

OVERALL SCORE

20.5

The Community impact area assesses the company’s commitment to and impact on the community. This includes topics such as job creation, supplier relations and local community engagement. Due to its social and regional ties, as well as the quality of its locally rooted supply chain, IPE Srl achieved an overall score of 20.5 points in this area.

Environment

ANSWERED QUESTIONS

10.0

The Environment impact area assesses a company’s overall environmental management, including its facilities, resource use, emissions, and the means used in its distribution channels and supply chain. In this area, the company scored 10.0 points.

Customers

The Customers impact area focuses on the impact generated by products or services and the benefits to the communities served. IPE Srl scored 10.2 in this area, a result that stems from the attention and consideration paid to consumers, which the company has always promoted with its exclusive, handcrafted, top-quality products.

CONCLUSIONS AND NEW GOALS

IPE Srl’s first Annual Sustainability and Impact Report 2022 marks an important step for the company, reflecting an even more advanced way of doing business. With the transformation into a Società Benefit, Company Management has committed to constantly improving the quality of its business.

The company's integration into the innovative legal instrument of Benefit Corporations hopefully reflects an almost mandatory step towards the standard of a new sustainable corporate model, not only for large organisations but also for SMEs.

This Report, intended for all stakeholders, aims to provide a snapshot of the company’s present situation with particular reference to how its operations impact the community and the environment.

In this arena, design also takes on a significant role, evolving in an ecological and sustainable manner. The ultimate goal of design is to minimise the environmental impact of every object, artefact or architecture for interior and exterior use. This generates an authentic design philosophy of recyclable, non-toxic and durable materials.

All within the framework of Environmentally Sustainable Design, applicable in room and landscape architecture, industrial design and interior design.

Sustainable design, especially in the luxury sector, to which it gives added value, is based on the use of top quality and possibly lightweight materials, whose components are reduced to the smallest differences, preferably from processes using alternative energies. It’s about selecting recycled and recyclable materials, preferably from renewable sources that are local or at least close to manufacturing site. Today, a significant proportion of IPE’s contractors already use recycled raw materials in their production processes. With regard to energy-saving possibilities, production must choose manufacturing processes with reduced consumption as compared to others. Product durability should be considered at the design stage and prioritised at the production stage, partly with a view to reducing the amount of waste.

Essentially, the designer’s endeavour with regard to environmental sustainability is to achieve the best compromise between business-specific economic parameters, technical parameters behind a luxury product, and context-specific socio-environmental parameters.

Eco-design rethinks design, assessing its reuse, recycling, disassembly, reduction of harmful emissions (GHGs), judicious choice of materials, adherence to certifications and dematerialisation.

Today, beautiful design is a good design, generating a positive social and environmental impact.

Sustainability is a journey that requires time and resources and IPE is fully aware of this.

NOTE ON METHODOLOGY AND IMPACT REPORT UNDER LAW 208/2015

The first edition of the Annual Sustainability and Impact Report of IPE Srl Società Benefit contains information on economic, environmental and social issues considered useful for ensuring an understanding of the activities carried out by the Company, in terms of performance, results and impact. Starting from this document, the reporting scope refers to the performance of IPE Srl Società Benefit, with registered office in Zola Predosa (BO), Via Mattei, 1, presenting the results achieved in the 2022 financial year (from 1 January to 31 December) and a comparisons to data of the last two-year period (2021 and 2022) and, where possible, data of the three-year period (2020-2022). It should be noted that all data relate to the operations of IPE Srl, with the exception of the chapter on Carbon Footprint, i.e. an analysis requested by Management and therefore conducted at a consolidated level. The document, drawn up annually, is intended to illustrate the company’s sustainability strategies aimed at demonstrating sensitivity to sustainability issues that are not purely economic.

The 2022 Annual Sustainability Report has been prepared in accordance with the “Global Reporting Initiative Sustainability Reporting Standards” set out in 2021 by the GRI-Global Reporting Initiative under the option “with reference to the GRI Standards”, and a table with GRI reported contents (GRI CONTENT INDEX) is attached to this document. The content and indicators covered in this report were defined in accordance with findings from the materiality analysis conducted in the first half of 2023. This document has been submitted to the Board of Directors of IPE Srl Società Benefit and has not been audited.

In order to meet statutory disclosure requirements, the 2022 Impact Report of IPE Srl Società Benefit has been prepared in accordance with regulations on Società Benefit, Law No. 208 of 28 December 2015, paragraphs 376-384 In particular, for correct transcription, it includes:

description of the specific targets, methods and actions implemented by the leadership in pursuit of the common benefit goals and any circumstances that prevented or slowed it down; see PART I of this document (pp. 50-58);

Impact assessment based on the external assessment standard with characteristics described in Appendix 4 of the law and including the assessment areas identified in Appendix 5 (corporate governance, employees, other stakeholders, environment); see PART II of the document (pp. 59-63) containing the sustainability assessment scores obtained by the company through B Lab’s B Impact Assessment (BIA);

description of the new goals that the company intends to pursue in the coming year; see final chapter CONCLUSIONS AND NEW GOALS (p. 64).

NOTE ON METHODOLOGY AND IMPACT REPORT UNDER LAW 208/2015

The company has adopted as a reference for this document the B Impact Assessment (BIA) architecture developed since 2006 by B Lab specifically for Benefit Corporations to measure their impacts under the law. From the outset, the BIA has been founded on materiality principles and fully meets the requirements of fairness, transparency and completeness.

Correct preparation and publication of the Impact Report is a fundamental tool for Società Benefit to fulfil their disclosure obligations with respect to the creation of common benefit, both general and specific. In particular, the drafting of this document was coordinated by Progesa Spa and involved specific in-house work teams, divided into:

Impact Manager:

Leopoldo Cavalli, CEO

Società Benefit Management Committee:

Leopoldo Cavalli, CEO;

Eleonore Cavalli, Art Director responsible for communication and marketing;

Luca Scopel, Technical Director;

Andrea Stignani, COO;

Daniele Rustichelli, CFO;

The Annual Sustainability and Impact Report is published on Visionnaire Home Philosophy’s corporate website at https://www.visionnaire-home.com/it

In collaboration with

Gri Index

The following table lists the indicators reported in the IPE Srl 2022 Annual Sustainability and Impact Report. A reference to the relevant Report chapter is given for each GRI indicator.

External attestation by the certification body

The first edition of the IPE Srl 2022 Annual Sustainability and Impact Report has not been audited by any third party, however, the company’s next goal is to achieve certification of the document’s contents, as strongly supported by Company Management. This document is formally approved and signed by Company Management and Shareholders through the initial stakeholder communication letter signed by the CEO. With a view to continuous improvement, the company is committed to providing increasingly accurate data for the chosen reporting period in future editions.

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