Italgas SpA

The Board of Directors, the Sustainable Value Creation Committee (SVCC) and the Control, Risk and Related Party Transactions Committee (CRRPTC) are periodically informed as to aspects relating to climate change (strategy, initiatives and performances). The Appointments and Compensation Committee is involved in the provisions of incentives for the management of climate-related issues and sustainability-linked targets. Finally, at least once a quarter, the Board of Directors is informed about GHG emissions and net energy consumption performance and on the level of achievement of the related targets, in occasion of the quarterly results approval, then communicated to all relevant stakeholders. [...] The CEO is regularly informed on climate change issues. In particular: • chairs the monthly Sustainability Business Review (established in 2021) in which a detailed assessment of key environmental and climate change KPI and progress of relevant initiatives are monitored and discussed (see details in the "Box: Sustainability Business Review" in the Par. 5.3). • chairs the monthly Innovation Committee to evaluate and sponsor initiatives that allow the improvement of the efficiency of Italgas operations including those with a focus on emissions reduction/increased energy efficiency/network technological improvements to make it ready to distribute green gases hence abating emissions; • drafts and proposes the Non-financial Statement, which is examined by the Sustainable Value Creation Committee and then submitted for approval to the Board of Directors. The Non-financial Statement contains information related to environmental, governance and social issues and is part of the Integrated Annual Report of the Group. Starting the first half of 2021, Italgas discloses the main climate change KPIs quarterly; • in addition to proposing the Strategic Plan annually, the CEO proposes the Sustainable Value Creation Plan to be submitted to the Sustainable Value Creation Committee for its exam and after to the Board of Directors for its approval. Starting from 2022, Sustainable Value Creation Plan and Strategic Plan are approved jointly by the Board of Directors. The Sustainable Value Creation Plan contains our actions, commitments and measurable climate related goals (see details in the Par. 5.2 "Sustainable Value Creation Plan targets"). [...] The Sustainable Value Creation Committee promotes proposals and has a consultation function to the BoD on matters of sustainability and climate change. Examples are the processes, initiatives and activities aimed at the sustainable development of the Group along its whole value chain. In particular, the SVCC: • examines and evaluates periodically sustainability policies aimed at ensuring the creation of value in the medium/ long-term for all shareholders and stakeholders as to the principles of sustainable development and sustainability guidelines, objectives and processes; • examines and evaluates the sustainability reporting submitted quarterly to the BoD; • monitors the positioning of the Group in the financial markets on the topic of sustainability and climate change, including ratings, and in the sustainability indices and ratings; • examines national, European and international undertakings and initiatives with regard to sustainability and the participation of the Company in them, aimed at consolidating sustainable success and corporate reputation internationally; • examines any sustainability initiative in agreements submitted to the BoD, also as to the subject of climate change; the profit and non-profit strategy, and the gas advocacy of the Group; [...] While the main responsibility on the topic of climate change lies with the SSVC, the Control and Risks and Related-Party Transactions Committee has been carrying out, given its role, proposals on the topic of climate change in regards, for example, to the risks management initiatives it oversee. The CRRPTC poses significant attention on the topics with implications on climate change and monitors the presence of activities aimed to the identification, evaluation, prioritization, treatment, monitoring and reporting of risks and opportunities related to climate change. [...] The ESG aspects are part of the ERM system applied by the Group. Each risk in the ERM risk map has been linked to the themes included in the materiality matrix and in the Sustainable Value Creation Plan and valued using (where relevant) ESG scales, taking into account mitigation actions. Specific ESG, including those referring to climate change, are included in the map. CRRPTC examines the periodic reports drawn up by the Enterprise Risk Management department for identifying, assessing, managing and monitoring the main risks. The Sustainable Value Creation Committee examines and evaluates the integration of ESG aspects into the ERM matrix. The CRRPTC reports to the BoD: • at the first meeting of the Board after each of its own meetings, with regard to subjects dealt with and the observations, recommendations and opinions formulated; • at least once every six months - and as a rule at (or prior to) the meetings held to approve the annual financial report and the half-year financial report – on the activities carried out and the adequacy of the internal control and risk management system.

Furthermore, there are three Board Committees, in compliance with Corporate Governance Code, tasked with providing advice and proposals including in relation to issues pertaining to Sustainability: [...] the Sustainable Value Creation Committee, which supports the Board in relation to guidelines, processes, initiatives and activities put in place to oversee the Company's commitment to sustainable development along the value chain, also with regard to climate change issues, examining and assessing, among other things, sustainability policies, including this one, aimed at ensuring the creation of value over time for the generality of shareholders and all other stakeholders over a long-term horizon in accordance with the principles of sustainable development, the integration of ESG issues into the Strategic Plan and into the company Risk Management System, profit and non-profit strategies, including Group gas advocacy activities, in addition to the disclosure of non-financial information, to be submitted to the Board of Directors, in coordination with the Control, Risk and Related-Party Transactions Committee in relation to its assessment of the suitability of the periodic financial and non-financial information to correctly represent the Company's business model, strategies, the impact of its activities and the performance achieved; [...] the Control and Risk and Related-Party Transactions Committee, which supports the Board in assessments and decisions also in relation to processes underpinned by wider sustainability issues, such as those concerning the Internal Control and Risk Management System as well as those related to the approval of periodic financial and non-financial reporting; in particular, the Committee, among other tasks, assesses the suitability of periodic financial and non-financial information to correctly representing the Company's business model and strategie, the impact of its activities and the performance achieved, coordinating with the Sustainable Value Creation Committee, and examines the content of periodic non-financial information relevant to the internal control and risk management system [...] the operational management of sustainability issues is entrusted to the Sustainability Function tasked with: designing and implementing the sustainability model alongside the other responsible departments of the Group, overseeing the stakeholder engagement processes, drafting the non-financial information and monitoring, alongside the departments responsible, the progress of the initiatives and achievement of the Group's sustainability objectives and targets, supporting the Sustainable Value Creation Committee in carrying out its propositional and advisory functions to the Board of Directors.

GD4S seeks to be transparent in our advocacy through clear and open communication of our positioning on policies related to the future of the gas grid. GD4S is registered on the EU transparency register with the identification number: 382692732615-35. We promote a culture of transparency and have put in place clear guidelines to ensure that our business operations meet all relevant legal obligations. We have developed disclosure policies which are aligned with international and/or European standards. [...] In the regular progress reports, GD4S will provide an overview of: _•_ **Our lobbying activities** We will disclose all relevant meetings held with European institutions and all resources used for European advocacy. _•_ **Our internal processes to prevent corruption and promote ethical practices** We will highlight the approach designed to prevent corruption and promote ethical practices and how we cascade these practices to our suppliers.

Attach commitment or position statement(s)[…]The Group public commitment to conduct its engagement activities in line with the goals of the Paris agreement is explicitly expressed in the following Group's webpage: https://www.italgas.it/en/sustainability/vision/goals/ where were we state that "We carry out engagement initiatives and pursue our sustainability objectives in line with the commitments set out in the Paris Agreement.† The screenshot of the webpage is attached.

Describe the process(es) your organization has in place to ensure that your engagement activities are consistent with your overall climate change strategy[…]Italgas' strategic plan focuses on sustainability, growth and innovation, generating positive effects on the community and on the territory: the company believes that gas infrastructures are a fundamental enabler of the energy transition, fostering the development of green gases and ensuring energy security, and they will play a significant role in the decarbonisation process supporting the fight against climate change. Renewable gases will gradually replace natural gas, guaranteeing a lasting role for current gas infrastructures also in the horizon of 2050. In this context, Italgas ensures that the scope and work of the associations of which it is a member are consistent with the focus and the strategic commitment of Italgas. Italgas does so by following a dual approach: firstly, each new membership proposal is examined to assess (1) its consistency with Italgas' strategic objectives, including those related to climate change, (2) the rationale for the new membership by the proposing internal unit, (3) the expected outcomes of the new membership and (4) the economic and human resources effort that needs to be committed. The assessment is carried out annually in parallel with the preparation of the budget and takes into account any pre-existing corporate involvement in similar associations.
Secondly, the daily life of the association is monitored by numerous internal experts; where necessary, the planning documents and position papers drafted by the associations are analyzed and if necessary (and possible) amended with the involvement of other internal experts, in order to ensure consistency with Italgas' strategic positions and views to fight climate change.