Sintesi del Bilancio di Sostenibilità 2022 EN

Summary of the Sustainability Report 2022

WELCOME TO LATTERIA MONTELLO.

Latteria Montello’s origins date back to 1947. Ever since then, it has been combining tradition and innovation, bringing goodness and freshness to the table. Our company was born out of the intuition of founder Giovanni Lazzarin, known as Nanni. From the start, it has always moved forwards in the tradition of the simplicity of genuine cheese, establishing us as a benchmark in the Italian dairy sector. This authenticity has gone hand in hand with the company’s success over time, leading to the birth of the Nonno Nanni brand, synonymous with excellence in fresh cheeses. Today, with over 75 years of history, our company has a solid foundation, firmly rooted in the Treviso area, in Giavera del Montello. It is a family-run business which also remains at the forefront of production processes and consumer needs,

with a wide range of high-quality products and a leading role in the premium segment of the stracchino market. These are major milestones that make us proud of our philosophy, which has always been founded on the values of our origins: love for the art of cheese-making and the utmost care for quality at every stage of the supply chain, while retaining the highest standards of sustainability. This sustainability is the primary condition for responsible management of the present and a positive vision of the future.

OUR COMPANY CULTURE.

We are deeply committed to the values of legitimacy, human rights and environmental sustainability. These principles are at the heart of our corporate culture and allow us to best meet the challenges of an ever-changing market and to

advocating the adoption of efficient, loyal and competent behaviours.

Closeness

By always maintaining these ideals at the core, we have been able to reshape our strategy and our products, constantly driven by a strong sense of responsibility for the art of cheese-making, which we have been handing down for generations, together with our founding values. Goodness and quality Environmental

OUR VALUES.

• Tradition and care.

We respect the cheese-making tradition handed down through three generations, attending to every stage of production to guarantee artisanal quality.

• Goodness and quality.

We use few, simple and genuine ingredients, adhering to natural processing times to offer a high quality product.

• Inclusion.

We value diversity and create an atmosphere of unity and togetherness, stimulating the expression of everyone’s ideas.

• Environmental and social sustainability.

We respect the environment and support our suppliers and the community through social initiatives to achieve a more sustainable and more equitable world.

• Reassurance and reliability.

We strive to be a point of reference, a reliable brand that conveys a sense of security and generosity to people.

• Closeness and humanity.

We always put our heart and soul into what we do, we believe in solidarity, and we are committed to being close to our employees, consumers and clients.

A PATHWAY FOR SUSTAINABLE DEVELOPMENT.

The recent adoption of a Sustainability Plan is testament to environmental and social responsibility being an increasingly integral part of our company’s business model.

This document focuses on four pillars, encompassing 12 specific areas of commitment and 54 initiatives where we have decided to focus our efforts for the future:

• Quality and transparency (10 initiatives);

• Our commitment to the environment (13 initiatives);

• Responsibility throughout the supply chain and our communities (8 initiatives);

• Development and well-being of our employees (14 initiatives).

In addition to the 45 actions included within the pillars, there are 9 others related to sustainability governance structures making a total of 54 initiatives, identified through an assessment of the sustainability needs affecting our business and an analysis of the priorities

and opportunities related to them. In defining the Plan’s strategic drivers and related commitments, we also took into account the goals defined in the 2030 Agenda for Sustainable Development Goals (SDGs) to contribute to their achievement. Of the 17 SDGs identified by the United Nations, our company – directly or through the organisations with which it collaborates – contributes to the achievement of 7 goals.

As a guarantee of our commitment, the Sustainability Plan was submitted to and approved by our Board of Directors, which analysed its contents and consistency with the corporate strategy. We have now set ourselves the goal of updating our Plan annually, in order to take stock of the status of project implementation and to set new goals, with the understanding that sustainability is not an end point, but a process of continuous improvement.

PILLARS AND SDGs SPECIFIC COMMITMENT AREAS

1. Quality and transparency

• Healthy food for all

Ensure high quality standards, offering recipes that are ever more attentive to modern dietary needs.

• Customer satisfaction and safety

Strive every day to ensure that customer satisfaction is continually improved.

• Complete and transparent communication

Promote transparent communication that informs in a clear and responsible manner.

2. Our commitment to the environment

• Circular economy and sustainable packaging

Develop a system that fosters the transition to a circular economy model.

• Logistics and mobility

Reduce supply chain-related impacts and promote sustainable mobility.

• Energy efficiency

Support a process that can improve our energy performance and reduce consumption and the impact of our products.

3. Responsibility throughout the supply chain and our communities

• Responsible sourcing

Pay the utmost attention to material procurement practices, including more and more social and environmental aspects in the evaluation criteria.

• Focus on the local area

Actively safeguard and promote the communities and environment that the company works within.

4. Employee development and well-being

• Health and safety of workers

Ensure that our employees have a safe and healthy working environment every day.

• Well-being of workers

Build a stimulating environment where the mental and physical health of workers is at the centre.

• Diversity and equal opportunities

Create working conditions that promote diversity and inclusion of all people.

• Training and education

Provide growth paths for our employees that enable them to realise their full potential.

4 12 Sustainability pillars Areas of commitment

54 7 Initiatives SDGs

QUALITY AND TRANSPARENCY OF MANAGEMENT.

Quality meets safety. Our supply chain.

Our commitment to creating lasting and constructive relationships with suppliers has always been geared towards shared goals and environmental and social awareness.

In order to maintain high product quality standards and protect the strength of the supply chain, we carefully select the companies we cooperate with, taking into account their quality and food safety requirements, fairness and reputation. In addition, we evaluate each supplier based on objective criteria of professionalism, quality, competence, transparency and fairness: if they do not respect our ethical principles, we reserve the right to take appropriate measures, up to and including the preclusion of any future collaboration.

We do all of this with a focus on maintaining local supply chains, because we wish to help protect the value and potential of our local area. In 2022, 92% of our supply chain was represented by Italian companies, 35% of whom were local, operating within the Veneto Region.

We bring tasty and safe products to the table that combine the authenticity of the past with the innovation of today, resulting in a perfect blend of dairy tradition and advanced technology: excellence built on expertise and respect for authenticity and flavour.

In order to ensure the highest quality standards for consumers, we are committed on several fronts: we ensure optimisation and control of existing production processes; continuous improvement with a view to safety, quality and traceability of products offered on the market; and research into original recipes to meet the ever-changing needs of consumers.

92% of supplies from Italian companies

We have always supervised the entire production cycle, from the selection of raw materials to widespread distribution of the product. And thanks to this commitment, we can always guarantee consumers fresh and preserved products in all their goodness.

Complete and transparent communication.

Product quality is at the core of our commitment, but equally important is responsible communication with consumers. We are careful to provide clear and transparent information on the label not only to comply with regulations, but also to provide comprehensive nutritional information so that customers can make informed choices.

The packaging of Nonno Nanni brand products provides detailed information on traceability, the origin of raw materials, nutritional values and ingredients, especially as regards allergens. The label therefore becomes a fundamental means of contributing to informed purchases, and the result of this attention to consumers can be seen in the trust that is increasingly being placed in us.

60,000 annual quality and safety checks on our products

over

COMMITMENT TO THE ENVIRONMENT. Our responsibility.

For us, sustainability is not just an opportunity, but a real mission, just as goodness is. Our slogan “Goodness in every deed” speaks to our commitment to bringing delicious, highquality products to the table, but also our ability to contribute through concrete actions to people’s well-being and to safeguarding the planet, to leave future generations a better, more sustainable and fairer world.

With this in mind, we work to continuously improve our environmental management system, adopting processes and technologies aimed at reducing the company’s impact and carrying out audits, both internal and external, to verify compliance with the rules and any room for improvement in practices.

When setting objectives and planning activities, we take into account the priorities identified and approved by Management: specifically, the UNI EN ISO 14001 standard has been adopted in the environmental field.

Materials and packaging.

Our company is increasingly aware of the environmental impact of our choices, both at the institutional level and among consumers. This is why we have decided to make a difference, offering cutting-edge solutions in line with the industry’s best practices: through collaboration between our various corporate departments, we have committed to analysing and testing the most innovative packaging materials.

In 2022, paper represented the largest volume of packaging used, with over 814 tonnes, 90% of which originated from recycled sources. We increased the use of plastic for the packaging of our products by +4.8% as production volumes increased compared to the previous year.

Our focus on sustainability has led us to increasingly rely on innovative and environmentally friendly solutions, such as bioplastics made from renewable substances, which saw an increase of 11% in 2022. However, creating new, lower-impact packaging is still a delicate challenge for us, given the importance of packaging in safeguarding product integrity.

90% of paper originating from recycled sources

+11% of bioplastics made from renewable substances

Energy consumption and emissions.

Mindful that market leadership carries with it a sense of responsibility, we have decided to innovate our plants through efficient solutions, to improve the management of our energy requirements.

In 2022, the energy consumed by our factory was 174,555 GJ, part of which relates to the use of fuels, mainly natural gas, while the other part is determined by the need for externally purchased electricity. For years, the company has been studying systems to make the consumption of resources more efficient. With this in mind, we have installed a cogenerator, a biodigester and a photovoltaic system.

The cogenerator allows us to produce electricity and thermal energy for use in the production process, and from the biogas plant we have generated 37,778 GJ of energy. Our company has also decided to commit to decarbonisation by expanding supplies from clean energy sources and adopting actions to make production processes more efficient in order to reduce our energy requirements. This approach is in line with our Sustainability Plan and coherent with the implications of our production reality: the dairy sector is one of the main economic sectors worldwide, but at the same time it is responsible for generating a significant

amount of emissions into the atmosphere. We are therefore committed to reporting direct emissions from assets we own or control.

In line with the provisions of the GHG Protocol, we have committed to reporting:

• Direct emissions (Scope 1): direct GHG emissions from assets owned by Latteria Montello or that we control operationally.

• Indirect emissions (Scope 2): indirect GHG emissions from electricity consumption, calculated using the Location-Based approach.

Management of water resources within the production process is one of our top priorities and we constantly monitor the use of water in production lines and technical services. By using state-of-the-art technologies such as CIP cleaning systems, we are able to limit water wastage, using it only in the strictly necessary quantities.

In 2022, we withdrew 406,680 cubic metres of water from medium to high water stress sources and, after use, returned it after checking and, where necessary, purifying it. The coexistence between the factory and its environment is paramount for us, because managing natural resources sustainably means guaranteeing a future for the next generations.

Our company is also committed to waste management, seeking to minimise the production of waste and limit its environmental impact by disposing of it in accordance with current regulations and the Environmental Management System.

In 2022, the total amount of waste produced was 2,486 tonnes, up from the previous year mainly due to the increased use of the biogas plant, which produces a new type of waste to be managed. Most of the waste is sludge from the process of purifying effluents from production, which we strive to make use of by reusing it in agriculture, promoting its recycling in order to reduce its environmental impact and pursue the goal of a circular economy.

CO2 OFFSETTING

We have decided to take concrete action to reduce our environmental impact by offsetting part of the emissions produced from 2014 to date, committing to offset a total of 281,466 tonnes of CO2eq (the same as CO2e emissions), the equivalent of the emissions produced by a car travelling 1.2 billion kilometres.

(source: EPA - United States Environmental Protection Agency).

281,466 tonnes of CO2eq offset

Water resource management. Waste management.

RESPONSIBILITY TOWARDS COMMUNITIES.

Our

We have always been committed to ensuring the well-being of our employees and to actively contributing to the well-being of the community.

Our focus on the world around us is based on a structured process, which starts by listening to the needs of the community in order to develop long-term projects in cooperation with local organisations. To ensure success, we forge valuable partnerships and network with all the most important local, public and private participants and stakeholders.

In the two-year period 2021-2022 we supported more than 10 associations, organisations and charities with cash donations and product donations.

Our support of the most vulnerable is expressed in a wide-ranging programme of community engagement and support actions, aimed at creating shared value and making a positive impact in the Veneto region and in the rest of the country.

The approach is often oriented towards sharing our products to help local communities: for some time, we have collaborated with the “Amici della Solidarietà” (Friends of Solidarity) Voluntary Association through product donations and redistributing surplus food.

For years, we have also demonstrated our closeness to people suffering from cystic fibrosis by collaborating with the Italian Cystic Fibrosis Research Foundation and financially supporting research into this disease. During 2022, we supported numerous other charities, including the Italian League for the Fight Against Cancer (LILT).

We care about the well-being of the youngest and oldest, and always put their needs first. We believe that children and grandparents are vital for preserving the sense of tradition and family that has brought our company this far, and we organise a variety of initiatives to help bring them well-being and happiness.

In 2022, a charity engagement campaign was launched to support the SpesaSospesa.org project, a solidarity initiative to help economically disadvantaged families. The project resulted in the distribution of 60,000 meals. Every year, we support the “I Bambini delle Fate” Foundation and sponsor the “Biennale del Bambino” (Children’s Biennial), including organising factory visits to introduce young people to the products they eat every day and tell them all about what is behind production at Nonno Nanni. We also help elderly people by supporting associations dedicated to them. To celebrate Grandparents’ Day (2 October), in 2022 we launched the solidarity initiative “Nonniversario” (“Nonniversary”), a digital campaign where we could let every grandparent know that we cherish the advice they have shared with us over the years.

For every piece of advice uploaded to the dedicated area of the website in 2022, we made a donation to the National Association AUSER, which promotes active ageing and enhances the role of the elderly in our society.

17 tonnes of food surplus distributed

Combating waste, in support of the local area.

14 associations supported

We are a partner of the “Amici della Solidarietà” (Friends of Solidarity) association, which helps disadvantaged people and promotes social solidarity initiatives, redistributing surplus food and still-usable products to combat waste through the “La Dispensa” solidarity emporium. We also support sports and local organisations in the Treviso area, maintaining a relationship of collaboration and trust with local communities, through donated products and economic contributions.

social initiatives.

Our commitment to the most vulnerable. Our initiatives for children and the elderly.

EMPOWERMENT OF PEOPLE.

Our people at the core.

Our company is not just a story about tradition, innovation and success, but also a story about people: it is thanks to their commitment and passion that we are a market leader today. This is why we recognise them as a key competitive factor and work to attract the best talent, assuring a strong sense of belonging and a stable working relationship.

We believe that differences are a source of enrichment and we want to support empowerment of women, with the knowledge that we operate in a sector historically represented by a heavily male-dominated workforce. We therefore promote diversity and gender equality, bringing together people from diverse backgrounds to meet the challenges of the market and supporting employees at every stage of their parental leave, including by offering the opportunity to enjoy an additional 6 months of part-time work, post-maternity leave, and breastfeeding period. As at 31/12/2022, our workforce comprised 307 employees, of whom 59% men and 41% women, and 86% of employees were on permanent contracts.

We believe that every new employee represents an added value for our company, and we therefore devote a great deal of attention to personnel selection. We have implemented a search procedure that aligns with our Code of Ethics and Organisational Model 231/01, choosing candidates based on skills and aptitude, in a way that is consistent with our ethical values and respects equal opportunities for all stakeholders.

Welfare and benefits. Health and safety. Training and development.

The excellence of Nonno Nanni products comes from the skill of the people who work in our factory. As a sign of our deep gratitude to them, we have always invested in welfare and benefit initiatives with a high participation rate (over 90%). We make various options available to our employees, such as contributions to educational expenses or to a health fund for medical services, as well as shopping or supermarket vouchers.

Workers’ health and safety is at the heart of our business. To this end, we define specific objectives for each department and we monitor them constantly to ensure a process of continuous improvement, which has led us to be certified to UNI EN ISO 45001 standards.

We believe that our employees’ well-being is essential to the success of the company, which is why we empower our employees, offering them training and skills development as crucial elements for the growth of both the company and its people.

86%

Through our specialist personnel, the working environment is constantly monitored and optimised, including with regard to the safety of employee movements within the factory. The company regularly audits the factory for compliance and, in the event of an accident, takes action to identify the causes and improve internal processes. However, in the two-year period 2021-2022 there was an increase in accidents.

In 2022, we conducted refresher modules totalling 1,860 hours and introduced courses on remote working and enhancing digital skills. The annual training plan includes internal and external courses, tailored to the needs of each department and the market: a programme that constantly adapts to the company’s strategies to keep resources competitive. permanent contracts

The approach to health and safety training at the company is preventive in nature and includes specific courses for all employees: in 2022, our people were trained for a total of 1,371 hours, with a special focus on musculoskeletal problems and prevention of long-term illness.

1,860

hours of training for professional growth

41% women employed at the company

GREAT MILESTONES AND NEW CHALLENGES.

At our company, the commitment to sustainability does not simply stem from a market drive, but responds to the need to create shared value throughout the supply chain: an essential stimulus for continuous improvement of our products.

In 2022, formalising our journey in a Sustainability Report was a key milestone in transparently reporting the company’s social, environmental and economic performance to all of our stakeholders. Internally, by sharing corporate values across all divisions, we have succeeded in conveying this vision to our employees, and today the importance of sustainability is perceived across all areas. Externally, the approach has been expressed through our fair and transparent attitude: after all, Nonno Nanni’s propensity to provide “goodness in every deed” is a value at the foundation of our brand recognition.

The challenge for the future is to focus even more on sustainability as an engine of innovation: the next few years will indeed be crucial, because growth must necessarily be responsible and mindful. Not only for our company, but for the entire production sector and for every one of us.