Sustainability for Brembo
To Brembo, sustainability has now become a distinctive trait integrated into the Group’s business model and guides its growth and development, year after year. Sustainability is part of Brembo's strategic vision — “Turning Energy Into Inspiration” — within the framework of the Digital, Global, and Cool Brand pillars.
This commitment started in the late 1990s:
- Late 90s: Brembo began to commit to analyzing the value of intangibles, evaluating its ability to create not just economic, but also social, environmental, and other values.
- 1999: The drafting of the first Intangible Capital Report formalized this process.
- 2004-2007: The Value Report is published, emphasizing the close relationship between the Group’s economic results and its environmental and social performance.
- 2008 - 2015: The reporting process continues with the integration of sustainability performance into the company’s business model. Aspects such as the macroeconomic scenario, safety and environmental risks, company organization, research, and human resources are included in the Directors’ Report on Operations within the Financial Report.
- 2016: The Group publishes its first Sustainability Report (on a voluntary basis).
- 2017 to date: The Group reports its environmental and social performance within its Disclosure of Non-Financial Information, which also includes all the policies that have always been part of its global actions in the areas of compliance, ethics, responsibility, sustainability, and transparency. The document illustrates the values that Brembo considers to be the foundation of the precious ‘intangible’ heritage formed by its brand, its reputation, and the set of principles that characterize the way in which a socially responsible company acts.
The governance of sustainability
The Group’s willingness to operate in an increasingly responsible manner and include in all respects sustainability in its business practices has prompted the implementation at Brembo of a Governance system that is dedicated to supervising and managing these topics at global level.
Materiality Matrix
Impact materiality – The “inside-out” perspective according to GRI
In line with the analysis conducted for the previous year's Disclosure of Non-Financial Information, in 2023 the Impact Materiality was analyzed in accordance with the GRI Universal Standards 2021. This analysis involves determining the impacts (positive and negative, actual and potential) generated by organizations and their value chains on the economy, the environment, and people, including those on human rights.
In accordance with the reporting standard, the process of updating the Brembo Group’s materiality analysis — and the ensuing identification of material topics — was structured into the following four phases:
Financial materiality – The “outside-in” perspective
The financial materiality analysis is aimed at identifying the risks and opportunities that have, or may have, a significant influence on the Group’s financial performance. In particular, the risks and opportunities consider uncertain environmental, social, or governance events or conditions that, if they occur, could respectively cause a potentially significant negative or positive effect on the company's business model, sustainability strategy, its ability to achieve its objectives and create value, and thus influence its decisions and those of its business partners regarding sustainability.
To identify material risks and opportunities for Brembo, the following inputs were considered:
- Impacts generated by Brembo and mapped in the Impact Materiality;
- Impacts or risks arising from the Group's actions to address sustainability issues;
- Brembo's dependence on natural, human, and social resources. These dependencies can trigger risks and opportunities in two ways:
- By influencing the company’s ability to continue to use or obtain the necessary resources for its business processes, as well as the quality and price of these resources;
- By affecting the company’s ability to rely on necessary relationships for its business processes under acceptable conditions.
- Risks and opportunities previously mapped by the Group's Risk Management area (such as the ERM report; Climate Change Risk Assessment).
The analyses identified a universe of risks and opportunities which were then classified based on the combination of the probability of occurrence and the potential magnitude of the related financial effects. Like the Impact Materiality, a materiality threshold was defined, which helped identify the most significant risks and opportunities. These were finally associated with Brembo's material topics, allowing for a two-dimensional representation within a double materiality matrix.
The proposal for Double Materiality, preliminarily assessed by the CSR Committee on December 13, 2023, was shared with the Audit, Risks and Sustainability Committee, the Supervisory Body, and the Board of Statutory Auditors in the meeting held on December 18, 2023, and was subsequently submitted for approval to the Board of Directors on December 19, 2023.
Turning sustainability into action
Brembo faces today’s challenges collaborating with various stakeholders to create solutions that have a positive impact on the environment, economy and people, on a long-term horizon. To bring the Group’s growth into line with that of the Countries in which its production sites are located, Brembo continues to pursue its Sustainability Plan: “Turning Sustainability into Action”.
The Global Agenda for Sustainable Development and Sustainable Development Goals (SDGS)
The 17 SDGs consist of 169 targets to be reached by 2030 and all countries and individuals are called upon to contribute, developing sustainable development strategies and involving all components of society. Businesses as well are called upon to have an active role, using their resources and skills to make a contribution to achieving the SDGs.
