Sustainability Summary 2022

SustainabilitySummary 2022

CEOMessage

2022wasachallengingyearformanybusinessesacrosstheworld.Obstaclesinthe supplychainpersisted,consumerconfidencedeteriorated,andtheindustrialtrading environmentcontinuedtobeopaque.

Yet,STIGAGroupcanlookbackatayearinwhichwelaunchedmorenewproducts, improvedsalesandmargins,andachievedimportantbusinessandESGtargets.

Threesolidpillars-People,ProductsandProcesses-haveguidedourSustainability Strategyinmeetingthesegoals,togetherwiththedialoguebetweenESGproject leadersthathelpsustocontinuallyraisethebarandholdourselvestohigher standards.

Fromthatdialoguecomesacompanyculturedevotedtoprotectingthehealthand wellbeingofouremployeesandtheplaceswhereweoperate.In2022,wepromoted initiativesaimedatincreasingflexibilityintheworkplaceandgivingbacktothe communitieswhereourbusinessesarelocated.

Whenitcomestoproducts,we’vecontinuedoureffortstoincreasethepercentageof electricpoweredequipmentthatmakesupouroverallsales.Wenowbelievewehave thebroadestrangeofride-onelectricmachinesintheworld.

Wehavealsoinvestedfurthertomakeourproductionprocessesmoresustainableand efficient,toimprovethedurabilityandqualityofourtools.Fromabroaderperspective, wearealsoinvestinginenergyreductionmeasuresacrossourplantsandtransitioning tophotovoltaicpanelstopowerourbuildings.

CEOMessage

Lookingaheadto2023,weexpecttocompileanevendeeperassessmentofourESG opportunitiesandourimpactontheenvironment,withfactsanddatawhichwillthen strengthenourimprovementstrategy.

Aboveall,ouraimistoimproveaswegrow.Weunderstandtheenjoymentandthe benefitsthatgreenspacesbringtooureverydaylives,andwewanttokeepturning thisknowledgeintoaction.Ourpassiontoinspireandhelpconsumerstotakecareof theirgardensgoeshandinhandwithourcommitmenttocherishnatureasawhole.

ThankyouforjoiningSTIGAonthisjourney.

SeanRobinson

KeyData2022

25% Databreaches 0

Batteryandelectric productssoldof overallsales vs35%in2021

*Objectiverecalculated,seepage44fordetails.

21,226

Recycledplasticin materials ISOcertifications achieved

2

Recycledmaterialin packaging* vs in2021

97%

61% 71% 27%

Materialssuppliers havesignedthe STIGACodeofEthics

Hoursoftraining vs19,945 Renewableenergy vs in2021

in2021

TheSTIGASustainabilityStory

January

Launcheda sustainability projectfocused onmanaging Environment, Socialand Governance(ESG) activitiesacross STIGA

December

Definedthestructurefor ESGgovernanceand managementwithinSTIGA

February

Releasedanew CodeofEthicsand begansharingwith suppliersfor agreement

September

Heldfamilydayat STIGAHQ

Launchedthefirst stakeholderengagement process

September

Releasedfirstinternal SustainabilityReportforthe companiesinChina,Italy, SlovakiaandSweden

May

June Completedstudy withtheUniversityof Padovaconfirming theenvironmental benefitsofmulching

Initiatedsupplier sustainability assessmenteffortin collaborationwith Sedex

November

ObtainedISO CertificationsforHealth andSafetyand Environment

October

Releasedfirstofficial SustainabilityReport fortheSTIGAGroup

January Releaseda Group-wide sustainability strategydefinition

Definedthefirst sustainabilitymatrix

July

Installedsolarpanels attheChinaplant, whichgenerated 130,000kWhofclean energyin2022

Launched“SustainabilityPills” onLinkedIntopromote environmentally-friendly gardeningstrategiesand shareregularsustainability updateswithawider audience

STIGAESGStrategyandAchievements

STIGAdefinedtheESGStrategyasasetofplans,projectsandtargetswhichwill buildasustainablefuturefortheCompany.Thisactivityisperformedwiththe contributionofallmanagementandstakeholders,andittakesintoaccountthe imperativesofthe2024BusinessPlan,BrandStrategyValues,andESGpillars. Specificareasoffocuswerefurthersplitintoprojects,eachofthemassignedtoa projectleader.

Theproposedlistofprojectsonthefollowingpageshavebeensharedand sponsoredbytheESGcommitteealongwithpriorities,measurabletargetsand relevantKPIs.Themajorityofourgoalsarevoluntary,exceptwherecertain standardsguideaspectsofgoalswithinthetopicsofSafeChemicalsand BatteriesManagement,DigitalProductsandICTSecurity,QualityandSafe Products,DiversityandInclusionandTransitiontoMoreSustainableProducts.

Overall,thestrategyandgoalsforsustainabilityareinalignmentwithbusiness targets,whichareapprovedbytheBoardofDirectors.Goalsareassessed againstdatareceivedfromESGprojectleadersduringESGcommitteemeetings. Thisenabledustoreflectontheachievementsof2022,whenwecompleted someshort-termprojectsafterhavingmetourtargetsandembeddedtheminto Companyprocesses.Aswecontinue implementation,wearereplacing achievedtargetswithnewsustainabilityprojects.In2023,theprojectsaddedare inalignmentwiththeinterestsexpressedbyourstakeholdersandtheresultof theupdateofmaterialitymatrixaccordingtothenew2021GRI.

ThestrategicprincipleshavebeenformallyapprovedbytheBoardofDirectors, andwehavestructuredtheSustainabilityStrategyintothreepillars:

PRODUCTS

“Wearegreen-fingeredengineers.”

● Progressivelysubstitutepetrolengines withbatteryandelectricpowered engines;

● Introducerecyclable,renewableand lowerenvironmentalimpactmaterials inpackagingandinproduct components;

● Makehighqualityandconnected productssaferfortheuserandeasier torepair.

PEOPLE

“Puttingpeoplefirst.”

● Ensurepeopleoperateinasafeand stimulatingworkenvironment;

● Attractandretaintalent;

● Developinternalcapabilities.

PROCESSES

“Thepowerofsimplicity.”

● Makeplantsandofficesgreener, savingenergy,increasingrenewable energyconsumedandreducing waste;

● ProtecttheCompanyandpersonal data,buildasolidcontrolsystemto reducerisksandcomplywithlaws andstandards;

● Promotetherespectofethicsand humanrightsintheGroupandinits supplychain.

Achievements:Products

Project

Description

TransitiontoElectric Mulching

Commitment

Result Highlights

EasytoRepair

Recycled& Renewable

Increasethepercentageofelectric poweredproductssoldinoverallsales mix.

Electricpoweredproductstorepresent 28%oftotalby2024* Encourageandpromotethemulching techniquetoSTIGAconsumers. Keepthepercentageof“mulch-ready” productssoldabove80%ofSTIGAlawn caresegment.

25% Resultisbelowtargetdueto unfavourablesalesmix,but incentivesandnewproducts areplannedfor2023.

88% Resultisinlinewith expectations.

Increasethepercentagerecycled, renewableandlowerenvironmental impactcomponentsandpackaging materialsinthesupplymix.

Definethemeasurementsystembythe endof2022.Extendthemeasurementto electricbrandedproductsin2023.

Inprogress Projectwillbemergedinto onewithabroaderscope; see“LongLifeProducts”on page32.

*Targetchangedonthebasisofcurrentperformance.

**Objectiverecalculated,seepage44fordetails.

60%recycledmaterialsinpackaging,3% recycledplasticinproductsbyendof 2022.

61%** 6.8% Resultsareinlinefor packagingandare exceedingthetargetfor components.

Achievements:People Project

Maintainhighratingsforproductssold onlineandforbrandawareness.

Achievements:Processes

Project Description Commitment

Highlights

0

STIGAESGStrategy:LookingAhead

In2022,weachievedmanyofthegoalswesetoutforourselves,butitisjustthe beginningofourESGstrategyimplementation.Thatiswhy,lookingaheadto2023,we willcontinuetoadvanceprogressonmanyexistingprojects,sunsetsomeprojectsthat wereachieved,andintroducenewprojectsbasedonstakeholderfeedback.

Wecontinuetoraisethetargetsacrossourprojectsthatarefocusedonthelong-term. Forexample,despitemeetinginitialgoalsforrenewableandrecycledmaterials,wewill keepinvestinginresearchandtestingtoproducequalityproductsthatarealso sustainablysourced.Toachieveour28%salesgoalforelectricandbatterypowered products,ontheotherhand,weknowwehavemoreworktodoonconsumer educationandincentives,aswellasdiversifyingproductofferings.

Theprojectsthatweachievedandcompleted,suchastheSafetyandEnvironmentISO Certifications,willberemovedfromtheprojectlistmovingforward.However,wehave onlydonesowiththeconfidencethattheseeffortsarenowembeddedincompany processes.

Aswecloseoutthoseprojects,wearealsoidentifyingnewprojectstoexpandour sustainabilityefforts,informedbybothourinternalgoalsandthe2022stakeholder survey.Consideringstakeholders’interestinlongproductlife,aswellascustomer satisfaction,wewillinitiatea“longlife”projectthatlooksatbatteries,spareparts, service,anddesignfordisassembly.FollowingtheimplementationoftheCodeof Ethicsproject,wewilltransitiontoaproactiveapproachtorealiseamoreresponsible supplychainbycollaboratingwithSedextoassessrisksamongsuppliers.Finally,we areplanningtoembarkontheambitiouseffortofcalculatingthecarbonfootprintfor theentireSTIGAGroup,includingboththeupstreamanddownstreamemissions.With theadditionofthesenewprojects,wereaffirmSTIGA’swillingnesstopursueadvanced sustainabilitytargets.

ThiswastheyearthatwesawhowESGhas becomeembeddedintheCompanyculture. Thankstoarobustgovernanceandtheregular meetingsoftheESGCommittee,projectleaders arereportingbackideasandgoalstotheirteams andseeingchangestothewaywework.That’s whywewereabletoachievesomanyofthe targetswesetoutforourselvesin2022,despite thechallengesalongtheway.

AndreaFrassetto,ProcessImprovementandESG Manager

NewProjects

Products

Project Description

LongLifeProducts

In2023anewprojectwillbelaunchedto formalisethegoalforlongproductlife, involvingdesignfordisassembly,spare partsavailability,andafter-sales serviceimprovement

“3R”forBatteries (Recharge,Repair, Recycle)

Processes

Project Group

CarbonFootprint

Keepthebatteriesproperlyrecharged, repairwherepossibleandstarta processtorecyclethem.

Commitment

Assessthecurrentstatusanddevelopa solidstrategyin2023.

Description

Analyseandinventorythegreenhouse gasemissionsoftheentireGroup, includingmappingupstreamand downstreamprocesses.

SustainableSupply Chain

Collectinformationonthesupplychain toensurealignmentwithourCodeof Ethicsandgoalsforaresponsibleand sustainablesupplychain.

Assessthecurrentstatusanddevelopa solidstrategyin2023.

Commitment

Completeaninitialcarbonfootprint calculationbyQ12024.

Engageatleast50ofthetop100 suppliersthroughSedexplatform2023.

Transitiontomoresustainableproducts

In2022weachievedtheelectrificationofarangeofgardentools–mowersfor smalltolargegardens,hand-heldtoolsforavarietyofgardenneedsandsnow throwers.ThisbuildsononeofthecorepillarsoftheCompany'sstrategy:product electrificationtocontributetoamoresustainableplanet.Aswedesignproducts withsustainabilityinmind,wealsoconsidertheotherbenefitswecanbringto consumersthroughbatterypoweredproducts.

ThetransitionfrompetroltobatterypoweredSTIGAproductshasthefollowing impacts:

● ForSTIGA,itimprovesthecompetitivenessofthebrandinthemarket andexpandstheCompanyknowledgeongreentechnologies,makingus betterpreparedforthefuture;

● Fortheenvironment,itreducesenergyconsumptionandCO2emissions;

● Forconsumers,itmeansowninggreenerandquieterproducts,without thedrawbacksofpetrolengines.

Thistransitionhasledustocreateproductsthatareoptimisedforbatterypower. Theresultingdesignstandsonitsownintermsofqualityandefficiency.

Whendevelopingourproducts,wemustconsidertheimpacton energyconsumptionacrosstheirlifecycle,theirrepairability,the applicationofchemicalfertilisers,andtheendoflifedisposal.

Battery Walk-Behind (WBH) introduced 2012

Rangeof48V batteryproducts arereleased

Rangeof20V batteryproducts arereleased

Interchangeable batteriesare formalised

Battery Hand-Held (HH) introduced

BatteryFront Mower(FM) introduced

Battery Ride-On(RO) introduced

BatteryAxial Mower,Swift RO,and autonomous robotmower introduced

Impact

Mitigation

STIGAisworkingtoexpandthesalesofbatteryandelectricpowered products,consideringaprocesstoassessproductrepairabilityand disposal,fundingresearchonmulchingandCO2benefitswiththe UniversityofPadova,andeducatingcustomersonthismowing technique.

ThisdesignprocessisledbytwoteamsinItalyandChinathatarespecialisedin advancedbatterytechnology.TheItalianplantalsohasaninternallaboratoryto testbatteries.Theseeffortsaresupportedbyasignificantinvestment:in2022, 80%oftheNewProductDevelopmentinvestmentdonebySTIGAwas concentratedintobatteriesandbatterypoweredproducts.Everytimeweinitiate NewProductDevelopment,wefollowinternalproceduresandinternational regulationsandstandardsondefinition,evaluation,development,prototyping, industrialisationandverification.Thisinvestmentinourpeople,processesand equipmentishelpingSTIGAtoadvanceitsexpertiseinbatterytechnology,giving usgrowingcapacitytodesignanddevelopbetterandbetterproducts.

Weplanneddomorewithbatteries,includingthedevelopmentofourown in-houseproduction,beginningin2021.Internalbatteryproductionallowsusto designsystemsthathavecommonparts,therebyreducingtheamountof componentsweneed.AsSTIGAbuildsthesecapacities,theabilitytodesign moresustainablesolutionsin-housealsogrows.

Ourknowledgeofbatteryproductsisfortifiedbyextensivefieldtesting.Every productisnotonlytestedinrealworldconditions,theyarealsopushedtothe limitsinourquestforhighqualitydesign.

Asindicatedinthechartopposite,theshareofbatterypoweredandcorded productssoldbySTIGAdroppeddowntothe25%ofCompanysalesin2022. Despitetheinvestmentsinbatteryandelectricpoweredproducts,thedemandof ourproductsfromthemarketin2022washigherforpetrolRide-Ontractorsand lowerthanexpectedforbatterypoweredHand-Heldproducts.Still,weanticipate thissharewillmarginallydecreasein2023,despitetheEurope-widelaunchof theAutonomousRobot,duetotheweakperformanceinelectrichandheldsand walkbehinds.

Non-GRI1:Shareofbatteryandcordedproductssold

TheSTIGA48Vand20Vinterchangeablebatteries.

AFocusOn:SustainableDesignInnovation

STIGAdesignsproductswiththeconsumerinmind,fromhowtheproductisusedtoits environmentalimpact.Sincewethinkwiththelong-term,wedesignbeyondthe currentstandards.Thatiswhywehavebeguntodefineasystemtoassessour productsforsustainabilityandrepairability.In2022,wecreatedafivepillar sustainabilityindex,whichwewillbeginimplementinginourdesignofelectricand batterypoweredproductsstartingin2023.

Eachtimeweembarkonadesignprocess,itwillbegroundedinthefollowing sustainabilitycriteria:

● Availabilityofdocumentationforproductuseandmaintenance;

● Simplicityofdismantlingtheproductforrepairsordisposal;

● Availabilityofspareparts;

● Energyefficiencyoftheproduct;

● Materialmakeupofproduct,withsourcingandrecyclabilityinmind.

Theseguidelineswillhelpensurethatwe“beginwiththeendinmind”,andconsider boththeproductlongevityandtheenvironmentalimpactwhenweembarkonnew designinnovations.Aswetestthiscriteriaandexpanditsapplication,wewillalsouse theresultstomakefutureimprovements.

Accordingtotheseprinciples,wehavealsoenhancedtheResearch&Development checklistthatourengineersusetoensure:

● Themachinecanbedisassembledwithoutdamagingcomponents;

● Materialswithadditivesareidentifiedanddocumented;

● Highfailurecomponentsareidentified;

● Alternativelowerimpactmaterialsareidentifiedforeachcomponent;

● Partcommonalityisidentified.

Whenitcomestodesigninnovation, sustainabilityisfundamentaltoourapproach. Whenwebegintodesignanewproduct,wethink abouthowitcanimprovethelivesofconsumers whilealsomeetingourESGtargets.Thismeans thinkingaboutthefulllifeofaproduct,from shippingtoitseverydayuseandrepair,to designingwiththefutureinmind.

JamesCameron,DesignandInnovationDirector

SustainablePackaging

STIGAiscommittedtodevelopingnewpackagingwithmaterialsofnatural origin,orfromrecycledsourceswithreducedenvironmentalimpact.Sustainable packagingisacriticalconsiderationinselectingandbuildingrelationshipswith suppliers,andthosewithalowerenvironmentalimpactleadtheway. Sustainabilityalsoinfluencesthepackagingprocessasitcallsforchangestobe madetoassemblylineoperations,includingadaptationstostaffactivities.And finally,sincetheconsumerwillultimatelychoosethemostappropriatedisposal method,basedonthematerialsselectedbySTIGA,thiswillalsohaveanimpact onsustainability.

Wehavecontinuedtoinvestineffortstoevolveourpackaging.Mostrecently,we havefocusedonincreasingtheamountofrecycledmaterialsinourpackaging. In2022,wesetoutatargettohaveatleast60%recycledmaterialinour packagingacrossglobalproduction.Inlastyear’sreport,weincludedwood palletsinthiscalculation,butdecidedtoremoveitinthisyears’calculation, consideringpalletsarereusedacrossproductcategories.Wereachedourgoal with61%recycledmaterialinpackages.However,wewillcontinuetoworkto increasethismixwhilestillensuringsturdypackages.

STIGAisinvestinginadditionalresearchtotestmoresustainablematerialsand designstoensureourproductsareshippedsafelytoconsumers.Someareaswe arecurrentlyresearchingincludereducingplasticinpackaging,using100% recycledplasticwhereplasticisneeded,incorporatingcompostablematerials intopackaging,andincreasingtheamountofmono-materialpackaging.

61%

ShareofRecycled MaterialsUsed

SustainableMaterials

In2022,STIGAcontinuedandimprovedtheanalysisofmaterialsusedinproducts,with thegoalofminimisingenvironmentalimpactthoughincreasedquantitiesofrecycled materialsintheproductcomponents,andalsoimprovingtheirrecyclability.Wehave analysedplasticsusedacrossourproducts,fromhighcarbonfootprintplasticssuch asABSandpolyamidetopolypropylene(whichhasalowercoverallcarbonfootprint). Ourengineersusethisanalysistoprogressivelysubstituteplasticswithalowercarbon impact.In2022,wesurpassedourgoalof3%,achieving6.8%recycledplastic(in weight)inproducts.

Eachyearwesetatargetforthepercentageofrecycledmaterialbasedoncurrent technologiesandtheiruseinplannedproductcomponents.Wemeasureagainstthis goalonaquarterlybasisinordertoidentifyopportunitiesforimprovement.Currently, therearelimitationsontheuseofrecycledpolymersinsomespecificapplicationsdue toperformanceandsafetystandards.Instead,wecontinuetotestnewlyavailable recycledmaterialsforapplicationincomponents.

In2022,STIGAtrackedtheuseoffourdifferentplasticmaterialcategoriesusedin componentsbyweight.Thisinformationhasprovideduswithaninitialunderstanding oftypesandamountsofplasticsused,includingrecycledplastics.Wewillalsowork closelywithsupplierstoexplorethedevelopmentofadatacollectionsystemthat allowsfortrackingofallmaterialsources,pavingthewayforafutureprojectto completeinitialLifeCycleAssessmentsonselectedproducts.

In2023,wewillalsoanalyseothermaterialssuchassteelandaluminum.Theresults willinformourrecyclingprocessesaswellastheinclusionofblendedvirginand recycledmaterialsinproductcomponents.Thenextsteptofurtheringour environmentaldesignprocessesistoexpandthisanalysistocoverallmaterialsused andprovidegreatertransparencytoconsumers.Ultimately,wearedrivenbytheidea ofprovidingourcustomerssustainable,high-qualityproducts.

Whilewe’remakingprogresswithplastic recycling,ourgreatervisionisbasedincircular economicprinciples.STIGAislookingtointegrate sustainabilityacrossourproductsandprocesses. Inthecomingyears,wewilladvancethisplanby conductingabaselineanalysisofthe environmentalimpactsofselectkeyproducts. Thisinitiativewillprovideuswiththeinformation weneedtomakemorethoughtfuland environmentally-mindeddecisions.

FrancoBastasin,SustainabilityTechnical Director

STIGA’sApproachtoPeopleManagement

STIGAplacesgreatimportanceonthecreationandpreservationofapositiveand proactiveworkenvironment.Everydecisionconcerningemployeesismadeto guaranteeequalopportunities.AllHRprocessesarebasedstrictlyonmerit, competenceandotherprofessionalcriteria.Employmentagreements,whichinclude salary,pension,insurance,andworkinghours,varybyindividualcompanies,but adheretonationalregulationsandindustrystandards.Aboveall,werejectanyformof disrespectfulordefamatorybehaviourandutilisemeasurestoavoidfavouritismor discriminationagainstnationality,skincolour,religiousbeliefs,politicalopinions, participationandgender.

Theprocessesandactivitiesrelatedtotalentattraction,employeedevelopmentand wellbeingaremanagedthroughformalisedpoliciesandprocedures.Theseincludethe Recruiting&SelectionpolicyandtheDevelopment&Trainingprocedure,aswellas throughspecificprojectsandinitiatives,basedonthecontextualisedneedsineach country.

Impact

Mitigation

ThereisemploymentuncertaintyatSTIGAduetohighturnover, particularlyatproductionplants,inpartduetoseasonalityofthe business.Inaddition,intheoffices,thereisturnoveramongyounger employeeswhoaremoretransitionalintheircareers.

STIGAisinvestingininitiativestoattractandretaintalentandknowledge byincreasingtrainingopportunities,offeringwellbeingbenefitssuchas engagementeventsanddisseminatingemployeesurveys.

Weareconstantlylookingforwaystoimprove theworkplaceculturesothatSTIGAisaplace peoplewanttojoinandstay.Inthepastyear, we’velookedathowourcompanyemployment policiescanbenefiteveryonefromworking motherstopeoplewithdisabilities.Wealsowant ourpeopletofeelwelcomeatSTIGA,whichiswhy wehaveformalisedourSmartandFlexibleWork Policy.Andthroughouttheyear,wehappily celebrateouremployeesatSTIGAgatherings.

Human Rights

Atallplantsandoffices,theGrouppromotesapositiveworkenvironment. Werejectviolationsofhumanrightsincludingforcedorchildlabor,and respectlocallaborlawsintermsofwages,benefitandworkinghours.We alsotrainemployeesontheCodeofEthics.

AngelaManzoni,SeniorVicePresidentGroup LegalandHR

TalentAttraction

STIGAisawarethatitssuccess,bothwithinthebusinessandwithinthesocial andenvironmentalcontextsinwhichweoperate,isbasedfirstandforemoston thepeoplewhoworkinandaroundtheorganisation.Theprocessesofattraction, developmentandmanagementdeserveourfocustoensureweareattracting newtalentthatgrowSTIGA’sknowledgebaseandcapacitytodobusinesswell.

That’swhySTIGAcooperateswithschools,universitiesandtraininginstitutionsin thevariouscountriesinwhichweoperatetoattractnewtalent.In2022alone,we dedicated489hourstoemployerbranding,whichis163%higherthanthe300 hourgoalwesetoutforourselves.Byrecruitingnewtalentduringhighschool, businessschoolanduniversityvisits,orofferingcompanytourstoourinterns,we areinvestinginthefutureofSTIGA.

489 vs120 in2021

EmployerBrandingHours

Dedicatedhoursin2022tocareerdays,interndays,and partnershipeffortswithlocalschoolsanduniversities.

21 vs7 In2021

OutreachEvents

Totaleventsdedicatedtotalentattraction,frominternal eventstoexternaleventswithsschoolsanduniversities.

19 vs20 in2021

InternsHiredasEmployees

In2022,wehad90internsandwereabletohire19as employees.

TourofSTIGAItalyplantwithinterns

RecruitingeventatH-FarmCollegetoattractnewSTIGAtalent

Inclusion

STIGA,withthecollaborationoflocaljobcentres,isactivelyworkingtoexpandthe numberofpositionsavailableforpeoplewithdisabilitiesandhavemadeprogress towardthisin2022,startingwithItalyandChina.Wehopetoexpandtheinitiativeto Slovakiainthefuture.

InJune,STIGAHeadquartersbeganworkingwithanexternalpartnertoidentify suitablerolesforpeoplewithdisabilitiesandsignedanagreementwithItalian authoritiestohiretwopeoplewithdisabilitieseachyearforfiveyears.Thefirsttwo hiresweremadeinAugustandSeptember.

TheplantinChinaworkedwithalocalemploymentagencytorecruitapersonwitha disabilitytoasuitableauxiliaryposition.Lookingahead,theChineseplantexpectsto offeradditionalpart-timepositions.

GRI405-1:Diversityofemployees

Weareexcitedtogivebacktoourlocal communityhereinItalythroughanew partnershipwithCa’Leido,alocalorganisation thatsupportspeoplewithautism.It’saneasy waytocelebrateinclusion,anditpaysdividends. Thepeopleprovidinguswithfreshfruitsand vegetableslearnwithinasupportiveenvironment atCa’Leidoandouremployeeshaveaccessto healthy0kmfood!That’swhywehopetoinvestin thispartnershipforthelongterm.

Spini,GroupLearningandPeople DevelopmentManager

Maurizio

OccupationalHealthandSafetyManagementSystem

Everyonedeservestoreturnhomesafeandsoundaftertheworkingday,whichis whySTIGAcloselymanagesoccupationalhealthandsafetyrisksinall productionprocessesandofficeactivities.Theissuenotonlyconcerns employees,butalsovisitorsandexternalworkerswhomustbeprotected whenevertheyenterthecompanypremises.Afocusonasafeworkenvironment canalsoofferanopportunitytoassessprocessesfromasustainability perspective.

In2022,STIGAachieveditsgoalofcertificationfortheHealthandSafetycategory accordingtotheinternationalstandardISO45001:2018.Allthreeproduction plants(Italy,SlovakiaandChina)nowmeetthiscertification.Nowthattheseare inplace,STIGAwillbegintoworkwithsupplierstoensuretheiralignmentaswell. Startingin2023,supplierswillbeauditedtoassesstheircomplianceor commitmenttobecomingcompliantwithinareasonableperiod.

Startingin2023,anexternalcertificationbodywillcompleteanannual assessmentofcertificationmaintenancethroughspecificauditsofthe ManagementSystem.

Theseongoingadvancesarealignedwiththecompany'ssafetystrategy,which aimsto:

● Developasystemofprocedurestomaintainandconstantlymonitorthe healthandsafetystandardssetoutinthecompanyOccupationalHealth andSafetypolicyobjectives,withafocusonindividualcapabilitiesand responsibilities;

● Maintainahighlevelofhealthandsafetyperformanceinvolvingthe wholecompanyfromtopmanagementtoproductionworkers.Provide adequateinformationandtrainingtohelpcontextualisetheimplications ofvariousrolesandbehavioursintheworkplace;

● Purchaseequipmentthatcomplieswithcurrentstandardsand regulations;

● Performongoingmaintenanceoftheriskassessmentthatcontinuesto meetapplicablelocal,nationalandinternationallegalrequirementsfor health,safety,labourandtheworkenvironment.

EnvironmentalManagementSystem

ThetargetofanEnvironmentalManagementSystemistomonitorthe organisation'senvironmentalimpactwiththeaimofmanagingandreducing themwithregardtocontinuousimprovement.STIGAhasprioritisedthisgoalin 2022inresponsetoongoingglobalchangesinmanagingenvironmental impactsintheworkplace.

In2022,STIGAachieveditsgoalofcertificationfortheEnvironmentalcategory accordingtotheinternationalstandardISO14001:2015,whichwasobtainedforall threeproductionplants(Italy,SlovakiaandChina).Thisstandardcertifiesthat anorganisationiscapableoffulfillingitsenvironmentalpolicyandcomplying withapplicablelawstolimitpollutionandtocontinuouslyimproveperformance. SimilartotheHealthandSafetycertification,STIGAwillbeginassessingits suppliersforEnvironmentalcomplianceandwillworkwiththemtoensurethey meetthesamestandards.

From2023onwards,everyyearanexternalcertificationbodywillassessthe maintenanceofcertificationthroughspecificauditsoftheEnvironmental ManagementSystem.

Thecompany'ssafetystrategyinrelationtoenvironmentalissuesaimsto: Monitorallenvironmentalaspectsandreduceimpactswherepossible.

SolarpanelsontheUKPlymouthWarehouse

EfficientandLowImpactPlantsandOffices

STIGA’ssustainabilitystrategyincludestheobjectiveofreducingtheemissions producedacrosstheorganisation.Towardthisend,STIGAisstrengtheningits internalprocessesandproceduresorientedtoreducingitsenvironmental impact.In2022,STIGAobtainedtheISO14001environmentalcertificationforall thethreeproductionplants.Alsoin2022,STIGAexpandedtheefforttopurchase renewableenergyacrosstheCompanies,witheightcompaniesnowholding GreenOriginCertificates,andresultinginanoverallreducedimpact.

WhiletheCompany'sbusinessisnotenergyintensive,theheaviestuseofenergy occursattheSTIGAproductionplants,andthereforeiscarefullymonitored monthlythroughdedicatedKPIs.Duetotheenergycrisisfollowingthe Russia-Ukraineconflict,mostofthecompaniesputinplacemeasuresadvised bynationalgovernmentstoreduceenergyconsumption,inparticularheating derivedfromnaturalgas.ThisincludesItaly,wheretemperaturesintheoffice werereduced.InSlovakia,theofficehasbeentransitioningtoLEDbulbsasolder bulbsarebroken.Otherofficeshavemadeadditionalsmallinterventionsto reduceenergyconsumption.However,theseeffortshavenotshownlarge measurableeffectswhenconsideringtheentireenergyconsumptionacrossthe Group.

Inaddition,theChineseplantinstalledsolarpanelsontheroofinJuly2022;this greenenergysourcewillcomprise20%ofthetotalenergyconsumption.Already in2022,thesolarpanelsprovided130,000kWhofelectricity.

ExternalfactorsmaylimitSTIGA’sabilitytoaddressthistopic,suchasnational energysourceavailabilityorabnormalweatherthataffectsoperating conditions.Thisiswhyin2023STIGAplantsandofficeswillexplorefurther opportunitiestoincorporategreenenergyandenergyreductionsystemsand protocols.Itisyetanotherwayinwhichwearelookingtoworkbothsmarterand greener.

SolarpanelsontheChinaGuangzhouplantroof

ResponsibleSupplyChain

OursuppliernetworkisakeyelementunderpinningsuccessfortheCompany.In2022, STIGAutilised1,677suppliers*,whichwereselectedbasedonquality,technologyand commercialcriteria.Thisincludes487materialssuppliersthathaveactiveagreements withSTIGA,ofwhich97%aresignedon,orinalignmentwith,theSTIGACodeofEthics** asofDecember2022.SuppliersareaskedtosignandapprovetheCodeofEthicsto ensurethepromotionofvaluesandprinciplesoftheGroup,whichinclude professionalism,fairness,transparency,sustainabilityandenvironmentalprotection, privacyprotection,legalcomplianceandanti-corruption.

Byintegratingsustainabilitycriteriaintothesupplierselectionprocess, theCompanyaimstoraisetheawarenessonESGtopicsacrossits supplychain.

Impact

Mitigation

Wewillgainadditionalvisibilityintosuppliers,includingrisks,through thecollaborationwithSedextoinformamoreproactiveandinformed approachtosupplierESGselectionmovingforward.

Human Rights

TheSTIGACodeofEthicsensuresthatoursuppliersadheretoourvalues andprinciples,includingarespectforhumanrights.TheGroupalso offeredtrainingstoemployeesontheCodeofEthicsandsustainable procurementin2022tounderscorethisapproach.Finally,the collaborationwithSedexwillprovidetransparencyintothehumanrights practicesofthebiggestsuppliersbeginningin2023.

*Supplierswithpurchases>€5,000.

**https://corporate.stiga.com/code-of-ethics/

Wearechangingourapproachtosupplychain managementtoalignwithoursustainability strategy.Whereaswepreviouslybuilt relationshipswithsuppliersbasedonprice, qualityandreliability,wearenowrenewingour focustoevaluatetheirESGimpacts.Throughour partnershipwithSedex,wecansystematisethis efforttogainnewinsightsintooursuppliers,and addressrisksaccordingly.

GianlucaComelato,SeniorVicePresident Procurement&SupplyChain

Webelieve…

Inthepowerofsimplicity: makingthecomplexintuitive. Ingiantleaps,notsmallsteps. Inquestions,notanswers. Becausecuriositydrivesus. Inbreakingtherulesandchallengingconvention, whileworkinginharmonywithnature. Inputtingpeoplefirst–givingthemthepowertheyneed, whenandwheretheyneedit. Inhavingthecouragetodotherightthing–forourpeople,customersandplanet. Indoingmorewithless,butperformingbetter. Inthestrengthoflogicandrationality. Inthepowerofimaginationandmagic.

Inthejoyandever-changingwonderofgardening. And,aboveall,knowingifyoulookaftertheplanet, itwilllookafteryou.

Wearegreen-fingeredengineers. WeareSTIGA.