Alcantara,100% Carbon neutral

Alcantara,100% Carbon neutral

Contents Introduction Alcantara Company Brand identity: an extraordinary material The applications: Alcantara World Carbon neutrality GHG emission calculation GHG emission reduction GHG emission compensation Next steps Sustainability Conclusions

The company: Alcantara S.p.A. The headquarter is located in Milan, while the production plant is close to Rome. Alcantara is a registered trademark of Alcantara S.p.A. which produces and trades the material. Alcantara is one of the excellences of Made in Italy in the world. Milan - Head Quarter Nera Montoro (TR) Umbria Production Site & Research and Development Center

The Product offers a unique mix of aesthetic, sensorial and functional values is faithful to its tradition, but is continuously improved to assure performance leadership 4

Lifestyle & Applications

Alcantara World: Automotive Many applications (seat, door panels, dashboard, steering wheel) thanks to the sensorial (unique look and touch) and functional properties (abrasion and colour resistance). Maserati Granturismo Porsche Porsche 911 Carrera 911 Carrera 4 G

Alcantara World: Automotive Product co-design Tailor made solutions Ford Evos Concept Lamborghini Murciélago SuperVeloce

Carbon Neutrality: a strategic decision Since company foundation, Alcantara S.p.a. has shown strong attention to the environment, but starting from 2009 we constantly monitor the impact of our process and product. Carbon foot print is taken as the most comprehensive kpi. The whole calculation and compensation process is certified by TÜV, according to the TÜV CMS Standard GHG 41. 8

GHG emission calculation Cradle to grave LCA according to the new Greenhouse Gas Protocol Product Life Cycle Accounting and Reporting Standard and ISO 14064-1. Use and End of life 9

The path to Carbon Neutrality Electricity Cogeneration plant Thermal Energy 1994 Purchase of eco-steam and 25% of electricity produced by steam turbines 1995 industrial waste transformed into co-products for footwear and packaging industries. 1996 installation of next generation equipment with low energy consumption 2000 Eco-friendly co-generation plant; Maximisation of separate waste collection; Installation of company video conferencing system 2006 Main textile waste converted into raw material for industrial use 2008 Electricity from renewable sources, (hydroelectric plant on the Nera river) * GHG emissions for year 2009 certified by TÜV, for the previous years the estimate has been made on the basis of historical data re-proportioned to the production of year 2008

GHG emission calculation 2011 residual emissions Ton CO2 Kg CO2e/m % Total Scope 1 1.965 0,69 9,5% Total Scope 2 251 0,09 1,2% Raw materials 14.773 5,22 71,6% Waste disposal 89 0,03 0,4% Trasport of final product 898 0,32 4,4% Use 2.318 0,82 11,2% End of life 342 0,12 1,7% Total Scope 3 18.421 6,51 89,3% Total 20.636 7,29 100,0% Scope 1: direct emissions form sources owned or controlled by the company (e.g. methane burner) Scope 2 : indirect emissions form purchased energy Scope 3: other indirect emissions (e.g. raw materials, transport..) End of life Use Trasport of final product Waste disposal Raw materials Total Scope 2 Total Scope 1 0% 10% 20% 30% 40% 50% 60% 70% 80% 11

GHG emission: Benchmarking Upstream of compensation, 1 m 2 Alcantara generates CO 2 emissions : 10 times less than a pair of leather shoes slightly less than a T-shirt slightly more than a cheeseburger 12 Source: University of Michigan

GHG emission compensation Hydroelectric Plant Wind Farm Biomass Plant In order to reach the full Carbon Neutrality, residual CO 2 emissions are compensated by financing projects that, under the aegis of the UN, contribute to improving global economic, social and environmental conditions. Wind Farm Hydroelectric Plant Hydroelectric Plant The projects, spread across three continents, relate to plants that generate energy from renewable sources, coherent with the decision to only use this type of energy in our activities. Hydroelectric Plant Geothermic Plant Biomass Plant 13

100% Carbon neutral Alcantara has been 100% Carbon Neutral since 2009: this means that it has defined, reduced and compensated for all CO 2 emissions across the entire production process. Every Alcantara meter produced does not increase the global warming. 14

Carbon neutrality: continuous improvement Rail/sea transport (2012-2014) Improvement of the order splitting index (2012-2014) End of life Use Use of 0 KM raw materials (2012 2015) Broadening of product range produced from recycled raw materials (2013-2015) Trasport of final product Waste disposal Raw materials Total Scope 2 New co-generation power station (2013) Total Scope 1 0% 20% 40% 60% 80% 15

Sustainability: behind Carbon Neutrality Certification according SA 8000 (since 2007) Accidents frequency index constantly lower than national average Corporate Social Responsibility Light weight Carbon neutrality ISO 14001 certification (since 2000) Over 90% of industrial rejects are recuperated 3-5% of yearly revenue invested in research Long durability expectancy Easy care High production yield A product with 25% post recycled content has been developed

Phyto-treatment Absolute novelty in Europe, in cooperation with University of Tuscia and the Italian National Research Council Natural process by which plants absorb leachate from the soil Three basins are covered with plantations of evergreen species Leachate from old landfills is feed to Phyto-treatment plant instead of Water Waste Treatment allowing sludge form WWT to be reused for different application.

Conclusion: Sustainability Report The Carbon Neutrality is subject to a constant monitoring by a third party (TÜV SUD) A yearly sustainability report is issued and published on Alcantara website www.alcantara.com

Thank you for your attention! www.alcantara.com