Maire S.p.A. (MAIRE) Earnings Call Transcript & Summary

Hello, everybody. Good afternoon, and welcome -- a very warm welcome to all of you who are present here with us, but also connected online via streaming on YouTube, on our portal team tool. So we have many following us. And especially a warm welcome to our external guests because our Sustainability Day is for the first time today open to, let's say, external friends, guests, people who are following our journey to transform our company in a full sustainable company. And these friends are particularly precious for us because help us in, let's say, interacting, in understanding other points of view in order to be always, let's say, aligned to the public interest because sustainability is -- we think, inside Maire is a very strong cultural change that every of us has to embrace. And the dialogue with the points of view external from the company is fruitful for us to understand what to accelerate, what to change and what to be -- to put under discussion because the system is a trend that is now heavy and strongly pushing companies to, let's say, accept also public responsibility, not pure business only, but more and more responsible to what is our impact outside the company. So let's say, business interest and public interest has to be more and more aligned. And this is our effort and a strong journey of transformation. Thanks to all of you who is participating to this because we don't success if we don't engage all the different functions, all the different responsibilities, all our competencies within the group to transform ourselves in a different way. So we have now the possibility to listen to the contribution of our Group CEO, Alessandro Bernini, who is now flying to China for a business, urgent necessity. But he would like -- he is in presence with us. And so it's time to listen to his warm, let's say, opening remarks, please.

Dear colleagues, good morning to everybody. I was forced to leverage on our technological platform to be with you today because, unfortunately, it was impossible to delay a meeting in Shanghai which, by the way, is going to take place right now. However, this appointment is too important not to give at least a message to all of you about my strong personal commitment on the topics, which will be discussed today. [indiscernible] speaking, is one of the most skeptical person about the ESG principles and their effectiveness. But as we are used to say, only the stupids don't change their mind. My mindset on sustainability has changed dramatically by acknowledging and recognizing that all our stakeholders are more and more requesting a sustainable way to do our business, working in a sustainability way is no more an option. And every day, we have a clear evidence of that but we should see it as a constant occasion to mature a future-proof mindset, essential to face the complexity of uncertain scenarios and seize new opportunities in the international panorama as well be aware we play a more complex role at local level. Maire is putting in practice its own sustainability vision in a way that is neither rhetorical nor conventional through very concrete actions and a constant alignment with the industrial strategy. And today, you will have a tangible proof of that. That's our way to make sustainability for real, that's how we create the value by doing the business, how we manage economic, natural and social resources. We are increasingly not only a reliable industrial partner for our business partner, but we have also the responsibility to enhance the potential of the territories we operate in both socially and economically, and to preserve the balance of their ecosystem. This implies a constant exercise of listening and interacting with the stakeholders representing different business and nonbusiness interest, getting closer to their point of view and understanding how we can mutually benefit from each other peculiarities. I am just back from Kazakhstan, where our group is trying to transform into reality some business opportunities and in doing our best to be successful, we are interacting with very closely with the local governmental representatives from the President to the Prime Minister and the top management of the local-based energy companies. All of them have no doubts about our technological knowledges and industrial expertise. So they don't need special assurances about our capabilities. They wanted to be assured that we are ready to get on board local personnel, local supply chain and local enterprises for the construction activities. In other words, we are requested to help the country in evolving its social and economical context while preserving an ecosystem, which for this population has a sort of religious content. Of course, the principle of sustainability from a social and environmental perspective must cope with the expectation of an economic sustainability. This one representing the structural lever for growth and the solid governance as the enabler to produce a long-lasting value and safeguard in the long term. We can keep doing it with the everyday dedication of a large team of people and with the participation and the alignment of all employees on common values as the most effective booster to move from strategy to action. So now I leave the floor to all the colleagues which will discuss and show you their experience and share with us the real value of sustainability, enjoy our second Sustainability Day. Thank you, and see you soon.

Thank you. Thanks to Alessandro for his words. Neither rhetoric nor conventional, he said. And this is, I think, is a good slogan for the work we are doing every day at Maire for this transformation. And of course, this sustainability is for a group like us also a strong opportunity in terms of new business, in terms of, let's say, empower all our clients in order to accelerate their decarbonization plans. So it's a strong opportunity for our technology, for our engineering, for our execution, let's say, skills to contribute concretely to change the world, to change our productivity systems that all over the world since a long time are based on hydrocarbons. So the transformation is progressive. It's difficult and is at different stage of quickness depend on geographies. That's why I would like to ask Fabio Fritelli, who is NextChem Managing Director and Group CFO, to deliver a small contribution about how sustainability for us is also a leverage towards the market.

Thank you. Thank you. Thank you, Carlo. I'll go live. I have not prepared any speech. I think the subject of this meeting today is very much something we need to feel inside. So there's nothing I have prepared but just to share with you some of the ideas I have with regard to sustainability and the ideas I have with regard to the industrial transformation that the world will have to face in order to tackle climate change, pollution and all the rest. I've been into the financial world for most of my career, joining industrial groups only recently, I've been with Maire for the past 10 years and now have been given by Sandro, by Fabrizio, the opportunity to lead NextChem. And I was not as skeptical as Sandro at the beginning, but I was skeptical myself in the sense that I think the way the world has approached sustainability a few years ago because the real boost to sustainability has come on the aftermath of COVID. So the world has stopped, taken a deep breath and understood that it was needed something different from the way we were operating before. So it's very recent. I do believe it was done in the wrong way. I do believe there are a lot of topics that will have to be addressed. I was listening to the news yesterday, China that we think is the is by far the biggest polluter in the world has only recently reached Europe. So if we take the past 150 years, Europe has been, by far, the biggest polluter and the biggest CO2 emitter in the world. And China has just reached the level of emissions that Europe has created in the past 150 years. So when talking about the energy transition and pretending that certain geographies, which include China, India, not to forget the United States, we need to also put it in the picture of the overall global development of the world. Now why all this preamble? This preamble to say that the energy transition will be a very long journey. We all know it. I'm saying something quite banal. And when looking at NextChem and accepting to become the Managing Director of NextChem, it's because I think NextChem is the best possible, let me not use, weapon because in these times, weapon is not a word I like to use, the best possible tool to engage ourselves in the energy transition. I cannot think to any other setup as flexible as NextChem to be able to contribute to the energy transition and to a way of doing things, which is more sustainable than we have done to date. And it's flexible because it's leveraging upon its competencies of the past and building new concepts, which need to be sustainable in environmental terms but also in economic terms. Otherwise, simply, the client will not be buying into it. So I don't think that there's any other company, and I'm saying -- what I'm saying on -- with the responsibility of the role that I'm now recovering. I don't think there's any other company in the market right now, which has the same tools, the same capabilities of NextChem. We are extremely flexible. We can keep on experimenting new formulas while we live out of the products, which have been done for decades through the fossil fuels. We are fully fledged to be a player in the low carbon industry, which is today -- it's not tomorrow, it's today. And we are investing all our efforts and skills, technological skills to find new solutions for the future. So this is to say that when I meet with the financial community, which I keep on meeting, it's my problem, they tell us you guys, so NextChem, you guys have a lot of competitors, but you don't have peers. I don't know if you understand the difference. We have a lot of companies who can sell one of our products, but we don't have any other company that can sell all our products together, and this is unique. So the idea we had a few years ago to set up NextChem to be instrumental to the decarbonization, hence, the sustainability is definitely working out. Two more things and then I'll leave the floor because it was only 5 minutes and it's not -- this is to be -- it's plenty of colleagues who will tell you way more than I can tell you. The financial community for once in their life have been useful in this sustainability journey. And believe me, when I say once in their life, I'm serious about it. They are always bringing problems to the economy. But this time around, they are pushing industrial companies to speed up their sustainability process. You know that we have a lot of debt outstanding on the market, which is linked to our Scope 1, 2 and recently Scope 3 objectives. My colleagues, who will tell you more about this in the future. So we are also helped by a financial community who will support the initiatives that we will take and believe me, this is absolutely the case. The real problem is not doing things, it's convincing clients that those things are also economically viable, and we have plenty of resources to deploy this new concept. One last thing, and then I'll leave the stage to my colleagues. Sustainability, I think, is not -- is no longer and will no longer be a way of behaving. I think sustainability is becoming a way of being, is becoming a way of looking at things. And Europe, old Europe, where most of us come from, should take this as the real opportunity. I don't think there's any other place at this point in time who has more need in economic terms of the energy transition as much as Europe. We read every day that a number of industries are suffering. You read on the press how the chemical industry is shutting down in Europe because it's no longer competitive. Then sustainability can be a paradox, can become a new economic paradigm for a number of industries, which are suffering these days. I will stop here. I don't think I can add more. There's a lot of colleagues who will follow after me, that's it. Thank you.

Thank you, Fabio. Thank you for your view also concerning financial community and how they look at us, as you said, not like -- let's say, we don't have peers, we have competitors. So this is something that is distinctive for Maire, and it's something on which we have to build in every day, in the situation and in the work that we have in front of our table, every day, we start our working day. So of course, this Sustainability Day is sustainable in itself because we tried, of course, to compensate, let's say, emissions and to be, let's say, careful concerning all our waste generated by the event itself. And this is just a small reference to give you this final message that is in every moment and in every single specific and maybe concrete moment of our working day that we should try to think differently in a sustainable way but much better than me, I ask Ilaria Catastini with our Group Head of Sustainability to join me on the stage. And I leave to -- and I leave in Ilaria's hands, the description of the agenda inside our detailed and very tough program and to, of course, introduce all the other guests. Thank you, Ilaria.

Thank you very much. Thank you. I'm so proud to introduce our Maire sustainability journey. It is a journey across areas. As you will have understood, ESG, environment, social, governance, but mainly across many, many initiatives, concrete initiatives in each of these areas. Then it is also a journey across a bold corporate commitment and personal efforts of hundreds of colleagues that work together, and it is a very important thing for us. Then it is also a journey across geographical areas. In the presentations that you will see, you will note some visuals of the locations where our initiatives have their impact. In some cases, you will see worldwide because the impact is worldwide. In other cases, you will see some precise countries. And it is also a journey between -- on one side, KPIs, targets, results, concrete figures and on the other side, stories because today, we will also like to tell some stories. Our sustainability strategy has been shared with 22 external stakeholders, some of them are here today, with a very deep one-to-one interviews. And it has also been shared with 1,600 employees, our colleagues. So we think that it is a bold journey. I will facilitate the E like environment section. And then I will leave the stage to other colleagues for the other 2 sections. And now please let me introduce the speakers of the E section. And please colleagues if you want to come, Maurizio Rigolio, Group Environmental Sustainability Manager; Pilar Molina, Group Supply Chain Transformation Head of Department; Paola Sclafani, Energy Transition Portfolio Manager; Lorena Joli, Environmental Sustainability Manager; Mayra Alvera Muchni, Environmental Sustainability Junior Engineer; Marina Blancafort, Environmental Sustainability Junior Engineer; and Daniela Quintero Castro, Environmental Sustainability Junior Analyst. Welcome on the stage. You see how diverse we are. So my colleagues will talk about climate, water, biodiversity, circularities, please listen to them. We will begin with climate with Maurizio Rigolio, Pilar Molina, Paola Sclafani, we will talk about emissions, 1, 2, 3 and 4. Please, Maurizio.

Good afternoon, everyone. I am very glad to be here to present the decarbonization strategy of Maire Group. Maire Group has since years, a decarbonization plan, which is called Net Zero Plan, which has the aim to reduce the -- to reach the carbon neutrality for Scope 1 and Scope 2 emission by 2029 and by 2050 for the Scope 3 emissions. The mid targets of this plan, which are also linked to a sustainable bond are related to a reduction of the 35% of Scope 1 and Scope 2 emissions within 2025 and the reduction of the 9% of the Scope 3 intensity by 2025. The Scope 1 emissions are the one related to the fuel combustion of the direct greenhouse gases emission, while the Scope 2 emissions are the one related to the purchase of electricity. What are the levers on which we are achieving this reduction? And the levers are an increase of the energy efficiency through hardware and digital intervention and the switch to fossil fuel energy to renewable energy through green energy procurement in our office and in our site through the connection to permanent grid of our temporary facilities at site and through the installation of solar plants. And in this video, we will announce the installation of the solar plants in Rhourde El Baguel site in Algeria.

Hi, everybody. I'm Martino Ancona, Construction Engineer in Rhourde El Baguel project here in Algeria. Behind me, our solar plant already fully operational. This plant supplies up to 300 kilowatts of green energy for our offices, warehouse and leading camp. Let's make our construction sites green.

Thanks to Martino Ancona who is connected online, and thanks to all our construction teams that is supporting us in our sustainability journey around the world. In order to achieve all these actions in a structural way, from this year, we started a Net Zero project, which will allow us to keep the strict control of the achieved results, the timeline and the relevant required budget. But the Scope 1 and Scope 2 emissions are only the 2% of the emissions generated by our group. The remaining 98% are related to the Scope 3 emissions. So the emission connected to our value chain and to describe how Maire Group is managing the estimation and the reduction of Scope 3 emissions, I will leave the word to my colleague, Pilar Molina.

Thank you. Thank you, Maurizio. Good afternoon to everybody. So 98% is quite a challenge. This 98% is mainly formed by our technical materials and the transportation of these materials up to the site premises for construction purposes. So how we did approach this journey? With a top-down and a bottom-up approach. So for the top down, we have leveraged on industry questionnaires, which is a standard solution. And through these questionnaires, we can have an updated overview on how our supply chain is developing solutions and is going through this decarbonization journey. But on the top down, we also have one distinctive asset that is our data. So we have built and certified this Maire hybrid method that provided the weight of our materials, and its composition returns us a calculation of the greenhouse emissions, greenhouse gases emissions of our project materials. But let's move to the bottom up. On the bottom up, we are working in this initiative with selected main suppliers and working with them to understand through the advanced methodologies, how they do with the life cycle assessment, LCA, and their environmental product declaration. While doing this, we have important data, not only their primary data, but how we can contribute as a group under decarbonization journey with our solutions from NextChem as Fabio was mentioning earlier. So this is also a part of the solutions that we bring on this path. We have started with technological equipment such as pumps, columns, compressors, rotary feeders and medium-voltage insulated switch gears. And from next year, we will start with the [ bulks ] materials, addressing concrete and carbon steel. And this implies, of course, piping and steel structures. Let's move now to the transportation. And here, the approach is slightly different. Here we leverage on Maire Group digital framework that is fully integrated with the best-of-breed solutions that provide the weight of our materials, the journey from the delivery point to the site premises and the means of transport return us with a carbon footprint of the transportation. So if you allow me one more minute, Maurizio and Ilaria, I would like also to share this initiative that we have implemented this year, together with the financial team and is another collaboration initiative with our suppliers through that access to our online ESG questionnaire and provided they have completed it, they can access to privileged financial conditions with our ESG-linked financial program. Thank you.

Thank you, Pilar. Up to now, we have described how we are managing the reduction of emission in our group, including our value chain. But our journey through decarbonization does not stop here because we want also to answer to the expectations of our clients and our stakeholders who are interested in what Maire can do on the decarbonization of our society through its solutions and its technologies. And so we have issued a framework regarding the avoided emission and to describe this methodological framework and this implementation in Maire Group business line, I leave the word to Paola Sclafani.

Thank you, Maurizio. Good afternoon. So with Scope 4, we are changing the paradigm from a company as source of emissions to a company as source of solutions. Why? Because Scope 4 concerning the avoided emission focus on our products, our solutions, our innovative technologies and on how much this can contribute to the carbonization of society. Definition, Scope 4 avoided emission is the difference between the greenhouse gases emissions, which occur or will occur if a product or service is implemented, our solution, and the emissions which would occur in the absence of the solution. These emissions are not our emissions. They will be reported separated from Scope 1, 2 and 3. These are the emissions that our clients will be saving, thanks to our products, thanks to our technologies, our sustainable solutions, our low-carbon products. Today, there is no agreed or recognized standard for assessment and reporting of Scope 4. For this reason, Maire Group has been developing in-house, a framework and a methodology for Scope 4 assessment, calculation and reporting. This methodology is completed and finalized and is currently under critical review by an expert third party. The key element of the methodology is the life cycle assessment that we perform for our solution and for the reference scenario. We calculate in this way, the emissions in terms of CO2 equivalent. The difference are the avoided emissions. In this case, we have also introduced some correction factors for our solution result to consider the technology readiness level as well as the market uncertainties in order to avoid overestimating avoided emission in a phase of development -- of technology development, which occurs sometimes. We implement this methodology to both our business units, the Sustainable Technology Solution business unit dedicated to new technologies addressing energy transition and also to the Integrated E&C business unit dedicated to engineering, procurement, construction of complex process plants. In this case, the solutions we assess are focused on energy efficiency improvement, power consumption reduction, optimization and fossil fuel saving replacement. In addition to the methodology, we are also developing a tool, a physical tool that we will deliver to our clients to monitor the Scope 4 avoided emissions, to support and reinforce our clients' journey towards decarbonization. For year 2024, we are implementing the methodology on a few selected technologies, one for each business line in STS. So for low carbon energy vectors -- sorry, for sustainable fertilizer and nitrogen-based fuels, we have selected [indiscernible] urea.

Thank you. Thank you, Paola. We have found this solution because we have a broad casting agenda, and so we have to run. But now we talk about water, Lorena, Mayra, please.

Good afternoon, everyone. Today, we would present to you our progress in water cluster. In the slide in front of you, you can see water mapping tools. The little dots represent our construction sites, while the different color is the degree of physical risk that is calculated -- are calculated based on flood risk, water availability, water quality risk and drought risk. Our task force use this map to develop solution to reduce our risk. But what is our task force? Our water task force was creating this year with the objective to develop qualitative and quantitative targets to implement, reuse, recycle and water monitoring. We also developed continuously, the idea to -- ideas that are collecting in water idea register that are further analyzed to verify their applicability. So we are working to develop solution able to help us to reduce our water in our construction sites and offices. For example, we used the reverse osmosis system in some sites to obtain drinking water that we will use to obtain water, can be used in our construction sites. But our attention is not only for construction activity, but also for proposed solution for our plant operation and for our client. I leave the floor to Mayra to explain a real application.

Good afternoon, everyone. So on the map, you can see there is a dot pointing towards Ras Laffan Water project. What is Ras Laffan Water project? So in this project, we use water positive approach to design and create a sewage effluent treatment system that recovers sanitary water produced by our construction camp. But what is water positive approach? It is an approach that balances the withdrawal, the discharge -- balances, the withdrawal of water and the discharge of the water to nature. And how do we implement this into our recovered sanitary water? So our recovered sanitary water is then directed to 3 streams. First, for watering the trees; second, for sprinkler system; and third, for irrigation of green space around the construction camp. The highlight of this project is that we reuse the recovered sanitary water for watering the native tree seeds that we have planted around the construction camp area. In this way, we're not only replenishing the aquifer through ground water recharge, but we also support and promote the growth of our trees. Our goal next year is to finalize our water target, especially around water recycling and water consumption. And also, we aim to create policy based on the target that we set. Thank you.

Thank you very much from water to biodiversity. Please, Marina.

Thank you. Good afternoon, everyone. So another very important pillar in environmental sustainability is by diversity. The reason why this is important is because we, as Maire need to ensure we are not creating damages to the environment. We will see that through 2 biodiversity projects we are developing in the area of the United Arab Emirates, which are the preservation of the Houbara Protected Area and the plantation of mangrove seeds. So in one of our main projects, the Hail and Ghasha Project, we have some export pipelines that will pass close to a protected area. This protected area, the Houbara Protected Area is a diverse desert environment that is the house of the Houbara Bustard, this birds you see here. This protected area also is the house of many wildlife. So when we're talking about responsibility as Maire, we are referring to the fact that we need to protect this endangered bird, and we should not disturb it during our activities. So how do we do that? Well, before developing any project, we conduct an environmental impact assessment. In this assessment, we identify in the Houbara Protected Area, which might be the potential impact in that area. When we identify the impacts, we define very clear mitigation measures, so we minimize our impact as much as possible. So for example, we identify that Houbara have their breeding period from January to July. So we impose seasonal restriction during that period in the protected area. That means that we stop our construction work, so they don't disturb the birds during their reproduction. Also, we have mitigation measures that involve training all of our workers. So they know about the Houbara, they understand the importance of it. And for example, they don't damage their nest while they are in the construction site. We also have mitigation measures that regard light and noise. We try to minimize nighttime working, so we don't disturb the Houbara bird and also all the wildlife present in the Houbara Protected Area. So these are examples of how we can prevent damages to the environment. But we, as Maire, can also contribute positively to biodiversity. And we see that through one biodiversity project that we're studying that will be the plantation of mangrove seeds. In case you don't know about mangroves. Mangroves are kind of tree that grow on coast of many countries among them the Emirates. And these trees have many benefits for the environment and for biodiversity, apart that they capture CO2, they provide food and habitat to many species. For example, a small fish can use the roots underwater to protect themselves from predators. Also, other species can use mangroves as a natural barrier, so it protects them from waves or storms. And finally, mangroves prevent coastal erosion because they can collect sediments from rivers and seas. For that reason is that with just one seed of mangrove, we can make a very meaningful impact towards biodiversity. And that's why we want to keep exploring biodiversity initiatives like this one. So we can preserve the environment while we reach our industrial goals, and we also create sustainable industrial practices. Thank you.

Thank you. It is wonderful. Isn't it? So now circularity with Daniela.

Thank you. Good afternoon, everyone. I'm going to present you the circular economy levels of Maire. We developed a 3-level framework in order to cover not only our perimeter, but also the whole value chain. So the first one is our internal practices. Then here, we have more control and a higher power to act directly. Then we have a second level that is focused on the upstream of the value chain, which is our suppliers. And then we have the level focused on the downstream, which are our clients. More into detail on the first level that you see on the first circle, we have our offices and construction sites. Here, one key activity in order to minimize our environmental impact is effective waste management. Other key initiatives that we have already implemented this year are introducing water dispensers, waste separation and also digitalization of processes. We want to focus also on the construction sites as they represent over 95% of the total waste generation we have. So for this, we consider our waste as well as the waste of our subcontractors. For this, we are developing a study on 4 main countries, that represent the majority of our business today, given the industrial projects that we have in these areas. You were able to see the countries on the previous slide. These countries were Algeria, Qatar, Saudi Arabia and Arab Emirates. This study focuses on 2 main aspects. The first one is understanding the picture and the context of the country into recycling and circular economy. So for this, we study their infrastructure as well as the rates and targets that they set at a national level, given recycling and circular economy. In parallel, we are working on our data and our proxies of the waste we will generate and the waste streams. This way, we can set feasible recycling targets in these regions and then targets at a corporate level. This research is also thanks to the collaboration of our region and areas, vice presidents and offices. Now moving to the circle in the middle, the level of the upstream, we have our suppliers. Here, Maire wants to collaborate closely with its suppliers in order to have sustainable practices along the value chain. For this, we want to promote the use of recycled innovative and sustainable materials, use circular economy principles like eco design and also an emphasis on packaging reduction as reducing packaging means also minimizing the waste on our construction sites. Having these collaborations with our partners, we are able to have feasible strategies for recycling, recovering and other circular economy strategies that can help us have a more sustainable value chain. Finally, we move to the last level, which is our client circularity. Here, we want to leverage on NextChem as it offers a great portfolio of technologies. Within these technologies, we have the recycling technologies that can offer up-cycling, depolymerization and waste-to-chemical between many other technologies. With this, we want to not only offer our clients the possibility to have circularity, but also other sustainable alternatives while we also increase the circularity within Maire. To conclude, having these strategies and implementing more into the circular economy aspect, we are able to customize Maire's strategies in different regions, considering the context and other specific aspects in order to maximize circularity in different areas. Thank you very much.

Well, stay with me while we try to connect to Mrs. Giuseppina Sordi. Giuseppina, welcome to our event. Thank you very much. Unfortunately, Edoardo Zanchini, who was the other speaker that we had on our agenda, had an inconvenient, we don't know, maybe he will reach us. But in the meantime, we will leave more time to Milan, because Giuseppina Sordi is Director of Energy and Climate Office of the Municipality of Milan. And we would like to understand together with her what is the Municipality of Milan thinking and doing on climate strategy. So a couple of questions for a very short speech that we have asked to Mrs. Sordi. The first question is how did your city decide to afford the climate challenge of mitigation and adaptation because we have to remind that for a town, for a city, for a state there is also the big problem of adaptation, please.

Good afternoon to everyone, and thank you for the opportunity. But what we try to do was to think to a different way -- differently from the previous program. We had the sustainable energy action plan, and which had a lot of measure -- specific measures for the reduction of the emissions. And our goal were -- was to think -- to have another approach, a wider approach with the intention to build a framework for every intervention and projects of the municipality so in order to align all the strategies. So the idea was not only to work on the climate challenge and the adaptation challenge, but also to include the problem of the air quality that in our context is very, very important. So the idea of -- to ensure clearance between all the -- across all the municipality's intervention is very important because this is a real union of intent of the complex municipality. The plan that we approved 2 years ago has 3 challenges. So it aims to achieve the compliance with the EU air quality standards and also to reduce carbon emissions by 35% by 2030 and the reference period is 2005 and limiting the increase in temperature, the local temperature within 2 degrees. It is a very structured plan that has 5 areas that I mentioned. So the first is air quality and circular economy. The second is the mobility. The third is on energy and the fourth on adaptation and the fact -- the fifth that is very important is the participation and communication with citizens and businesses and enterprise stakeholders in general. The plan has more different goals, 19 goals and 49 actions and work on several areas. So just for example, the urban planning, the public space design, the building design, accessibility of services and mobility. And also every action is seen through the lens of equity and inclusion. And this is very important because from this approach, now we are working on other projects such as, for example, the energy poverty plan.

Thank you very much, Josephine. Maybe we have Edoardo Zanchini. Edoardo, thank you for coming. I know that you were rushing to reach us. Thank you very much. So I repeat the same question to you, maybe we don't have the time to make the second question, but I'm very happy to have you anyway. How did your city, how did Rome decide to afford the climate challenge of mitigation and adaptation?

Thank you. And sorry for the delay. I was in a meeting as you already said. Well, the city decided to choose climate change as one of the priorities. So the -- in a way, not only to tackle these issues, but even to renovate and innovate the city. So one of the first decisions that the Mayor Gualtieri did was to create an office that had to coordinate adaptation and mitigation policies. And in this year, we will approve the 2 strategies for mitigation and adaptation. We will approve our Climate City Contract as Milano already did and we will approve in December our adaptation strategy. In this way, we would have a clear idea on which are the priorities, which are the measures. And we already started working on these issues with the resources of the recovery plan, even of the 2025 Jubilee. And so now we have a coordination between all the different offices and a clear idea of what we have to do. Obviously, we even need all the city on board. This is why we decided on the adaptation strategy and on the climate -- on the city climate contract to involve stakeholders, and we are very happy on this because it has been very interesting. We will present this next year at the beginning of 2025, but many stakeholders like you and many others that are -- obviously are in the capital of Italy are interested in working together. And I think this is one of the most important results of the work that we are doing because in the next year, we have to accelerate, but we even have to involve people, stakeholder. We all have to understand which are the most effective policies that we have to tackle and to understand even how to find resources to work all together, European level, national level and the city and the communities and all the organizations.

We are very keen, of course, to cooperate both Milan and Rome. We are ready. I thank you very much. Really, really and have a good work. Have a good path for decarbonization.

Thank you.

Thank you.

So thank you to our speakers. Please, you can reach your seats. And please, and we will move through the S section. S like social, I invite my colleagues, Sara Frassine, Group Development and Compensation Vice President; and Maria Selli, Group Health, Safety and Environment and Social Accountability and Project Quality, Vice President, please.

Hello, everyone. Social, as Ilaria mentioned before, it's like -- the S, sorry -- the S, it's like social, Ilaria mentioned before. Social means focus on relation with people and also with the impact that the organization itself has on the society. Social covers all the topics related to human rights, health and safety, working condition, labor relations and also, of course, the relation with the clients and also with the community. In S, Maire is not only that, it's also the continuous investments on the hiring people, hiring competencies and talents from the market. And the headcount at the end of September 24 exceeded 9,300 employees. So more than 17% with respect to the last year. So S is also not only investments from the market but also from the development of our people internally. So we invest several, several hours about training. And in the first half of 2024, we spent more than 63,000 training hours for the professional development of our people. In this figure, is not included all the training about HSE that Maria in a while will explain us. So last year, during the Sustainability Day, we announced a very strong training plan for a deeper knowledge on our sustainability strategy and also related to D&I topics. For all the employees, strong plan, I know very well. But at the end, nowadays, we can do that, we can say that the knowledge about our sustainability strategy is a really better understand internally to create a more inclusive corporate culture. And today, I'm really glad to announce a second program about the D&I. So related specifically to D&I, a development plan dedicated to our people coordinators. So we are speaking about 700 managers of our group will be invited in this special training program that has the idea behind to create, to equip these people coordinators with tools, instruments and also confidence to weave D&I in their managerial practices every day with the people. To reinforce, they must approach to manage diversity because this is really pivotal, and this is why we decided to invest in this training plan for our people coordinators. The development program will be available by the middle of December, and we will last 15 hours per person. I know also in this case, a strong effort for us but we believe that this is really important for our culture. We would like to experiment new training techniques. So we will organize a session through workshop's environment where people can be really active, really proactive during the discussion. And also, we would like to invest on peer-to-peer learning. So the sharing of experience is a sharing of ideas and point of views will be really an occasion to learn from each others. And last not the least, role plays and case studies to take advantage on the real case scenarios in order to apply that theoretical concept to the real life of the daily life in our group. So I would like to conclude with a present for you. We use several times this sentence during the training. Diversity is being invited to the party, but inclusion is being asked to dance. So a message of productivity, a message to be really an actor on this path, on this journey. So we decided also to integrate this kind of message into our mottos and another present for you, inclusion is a way of being, integration is a way of doing, this is our motto. So this is a journey on D&I for Maire. Maria, it's your turn.

Thank you, Sara. Good afternoon to everyone. As Sara mentioned, training is fundamental in order to make -- to grow up our resources. For what concerns safety, which is a core value for Maire Group, we are performing training to all our employees and our subcontractors. And as we can see, we have important figures on safety, training and social accountability training. Considering the cutoff of the end of September, we have performed more than 2,900,000 training hours. And our forecast for the end of the year is to supercede 3,500,000 training hours, which is 40% more training from what we have performed in the last year. So we are talking about important numbers. So for what concern safety results, we have achieved important results on our Maire Group. Our loss time indicator and also lost recordable indicator is more than 3x better from the International Association of Oil and Gas Producer benchmark. Of course, we are not happy to have achieved this result, and we not stay like this, but we are trying to improve all ways our safety performance. And now we are asking how we can improve these results. Maire results are significant and indicative because we don't adopt only the correct methodology and we don't have immense commitment on safety, but we are involving all our people that take part on our daily activities on our construction site. Maire's target is to humanize HSE. So for us, safety doesn't mean only a compliance with the rules and the laws in the countries where we are going to build our plant. It concerns our people who through their behavior, their habits, their values, their skills, build the real safety in our construction sites and build and bring the results that follows. So for this, we have implemented new initiatives on our group with a strong focus on awareness on behavior and involvement of all our stakeholders. One of this program is the behavior-based safety programs that later on, our colleague, Stefano Margozzi will give us more insight. Last but not least, we are working together with our IT team and Michele and [ Marighella ] in order to bring artificial intelligence to support safety on our construction sites. Artificial intelligence will be essential for the HSE in the coming years because it addressed the challenging safety performance with a higher efficiency in the currency, and it brings a range of solutions to enhance HSE, to improve our risk management compliance and predictive analytics for risk prevention. Thanks all of you for your time.

So Maria, we can ask some colleagues to come with us on the stage. And I'm really glad to ask Francesca Familiari, Group Compliance Ethics, Diversity and the Inclusion Head of Department; and Brijesh Shah to say with us. Brijesh is the Legal and Corporate Affairs Head of Department of our TCMPL. We ask also to Stefano Margozzi, our group HSC, Head of Department; and Carmelo Pelligana, our Construction HSC Director for Oil and Gas project; Valentina Grieco, Group Social Sustainability Manager; and Mark Sleijser, Marketing and Head of Department, Stamicarbon. Also, I'm asking Annalisa Del Pia, our Group Institutional and International Relations and Clients Assistance Head of Department; and [ Irene Micheloto ], our Group Security Vice President. Are you ready? Yes. No. Francesca it is your turn. So please.

Thank you, Sara, and good afternoon to everyone. Today, I want to convince you that the sentences that you should see behind me, okay, are true. And I will do that speaking about why D&I is essential, what we're doing about D&I and the last D&I initiatives. So why D&I is essential in a multicultural group, as Maire Group is, I face every day with different perspectives. And I have learned that D&I is essential for improving our work environment because it creates innovations, values and trust. And when we trust each other, we work together more efficiently. We communicate openly, and we feel committed. So D&I increases our productivity and reduces turnover. So what are we doing about D&I? Several initiatives, Sara mentioned D&I training, but we have also a D&I working group that is a multidisciplinary team that is dedicated to the development of D&I initiatives for the group. We have flourishing program for the development of young professionals and we promote women and people with different ages and competencies to the Board of Directors and Board of Statutory Auditors of the companies of our group. So these are some of the initiatives that confirms that Maire is committed to value diversities and create a work environment that is safe, transparent and welcoming. So we must protect this work environment. That's why yesterday, the Board of Directors of Maire approved a global anti-harassment policy that is a policy that rejects and condemns, all forms of violence, discrimination and harassment at workplace. And this policy is built on 3 key measures: training, listening and helping. Training, we must prevent reduction. That's why we provide D&I health and safety training. Listening, we have whistleblowing channels for everyone inside and outside our organization. And helping, we managed the investigative process for any complaints we receive, ensuring it is accurate, timely and impartial. So in conclusion, prevention measures are the key, but the positive behavior of all of us are the power for creating the safe work environment. Thank you. And I want to give the floor to Brijesh from Tecnimont India. Thank you.

Thank you, Francesca. Good afternoon, everyone. As you are aware, Tecnimont Private Limited India is the engineering hub of Maire's Group. The employee head count in excess of 3,200-plus employees, Tecnimont India represent close to 35% of the total global workforce of Maire Group. Since 2014, Tecnimont India has implemented a policy in compliance with the Indian law to prevent and address the instance of sexual harassment of women at workplace, policy aims to create a safe working environment by protecting women and ensuring effective complaint redressal mechanism, an internal committee of employees, led by senior women employees, including external legal experts, handles all this complaint impartially and reports their finding and recommendation to the Board of Directors for requisite disciplinary actions as may be required. Regular training and awareness programs are conducted for all the committee members as well as all employees in general to sensitize them about the issue to keep them informed about the legal provisions and the reporting mechanism. A policy has indeed formalized a high standard of workplace culture for Tecnimont India. India being a well-known multiculture country, we at Tecnimont India adhere to the fundamental principle of religious diversity to prioritize creating a workplace for culture -- of workplace culture of freedom, respect and dignity for all employees. Most importantly, this includes a complete rejection of discrimination on the grounds of religion, race, caste in selection and recruitment of employees. Talking about the gender diversity. Tecnimont India is improving its ratio of female employees versus male employees on a year-on-year basis. As on 31st October 2024, the appointment of female employees in Tecnimont India has gone up by more than 21% as compared to the previous year. We, in Tecnimont India believes that acknowledging and celebrating gender diversity is most crucial for creating an inclusive workplace, a truly diverse work environment not only facilitates equal representation of various genders, but also promotes a work culture of respect, nondiscrimination and ensuring that all employees feel comfortable in expressing their gender identities. We at Tecnimont India believes that D&I efforts are now must have to retain and attract talents within the organization, to strengthen the relationship with the client and customer and for achieving long-term success. Thank you.

Thanks, Francesca. Thank you, Brijesh. And I would like to invite Stefano to give us some insights on behavior-based safety programs, Stefano.

Thank you, Maria, and good afternoon, everybody. I will talk about health and safety and in particular, I will talk about behavior-based safety program, the BBS. So as Maria mentioned, safety is a core value for Maire. And we are all involved in reaching our common goal, which is to create a safe work environment. But what is fundamental is that all our strength, all our action regarding safety involved not only our workers, but also the workers of all our subcontractors. But let's see what is BBS? BBS is a proactive approach to improve workplace safety, focusing on behavior of employees. And why we decided to adopt it on Maire, and there were too many reasons led us up to adopt it, but let's focus on the first two. Even if our safety results are very good, we have always to improve them. And the second one is that the few events we recorded are all behavioral. Therefore, if we can establish what a safe and unsafe behavior, and if we will be able to intercept and recognize them on our workplace for sure, we can transform the unsafe behavior into a safe behavior. Let's see what we can expect an update from the BBS program, the main expectation. Employee training and engagement, we will train all employees on BBS practices, observation techniques and how they can receive and provide feedback. And we will involve and engage all of them into such program because in that way, we can build with them our safety culture. Define safe and unsafe behavior that can have an impact on safety on our workplace, tailored on our specific task and environment, and then obtain a good number of observations and data collection on -- we can working on. The next one regarding the positive feedback and reinforcement and that is crucial to improve our safety performance because whenever we provide a positive feedback and the positive reinforcement to employees that have a safe behavior at work that will continue to have such behavior and then there will be safety influencer for all the other workers. The last one, but not for important, is that if we integrate the BBS with the already existing safety program, we can enhance the overall effectiveness of workplace safety by combining the traditional safety practices like the risk assessment, job ads and analysis with the behavior focused strategies. And for sure, we will obtain a really good result. Let's see where we are with the BBS in Maire. We had more than 3,000 training hours, and all of our HSE manager have been trained with BBS. We already start BBS in Maire Plus, that is our recycling plastic plant and we are starting BBS at our construction sites. Now I finish, and I would like to close my speech with the sentence, which I really strong believe that is a safe world is a sustainable world and a sustainable world is a safe world. Thank you.

Thank you, Stefano. Now I would like to ask Carmelo to give us how we can mitigate the climate change impact on our people at our construction sites, Carmelo?

Thank you very much, Maria, and good afternoon to everybody. I would like to start with this news release by the Routers, on November 7, 2024. It says that this year is virtually certain that the 2023 will be eclipsed completely because of the world's warmest record since the record began. So this means that our expert warning us that the impact of climate change is increasingly impact the health and safety of workers in our construction site because of its stress. But what is it stress? Stress is a condition in which our body is no longer able to cool down. And this caused incredible load of pressure in our workers, both physically and mentally. So now let's see what is -- what are the impact, what are the factors for its stress? We can say that each ambient temperature is one among the impacting elements and factors for its stress as well as humidity. Now we are building one of the biggest plants ever built in Tecnimont to the Hail and Gasha project. We have this project executing in the Emirates is a place where in the summertime, there is a high temperature, the temperature can go above 50 degrees celsius and the humidity can go above 70% to 100%. And the work activity people perform is another factor, which impacted the stress as well as the pre-existing weather condition for the workers, such as hypertension and other sickness. We can also nominate the inadequate fluid intake of the people, which by itself can shut down the body working. So how we can mitigate such impact on the people on our workers. Let me say, first of all, that Tecnimont to consider health and safety as a core value has been revealed here from my colleagues, and it is not rhetoric. Indeed, since decades of operation of Maire, we have issued [indiscernible] programs, which also have improved the condition of our workers. And today, I would like to speak with you about 6 main pillars, which we implement in our construction site. Start with the training. As being said, we do a lot of trainings. We informed the people about extreme weather condition, how the other can affect them and how they can mitigate the effect on theirselves. We move next in the shelters. As shelters are temporary structure, which we build nearby the working location, where the people can go to rest, drink some water, cool down for the temperature and eventually come back to the working site. We inform about the cycle of rest and work and also inform about the quantity of water that people must drink. Next is the monitoring system. We have an instrument which measure the stress index, which we communicated through flag system. We have the green, the yellow and the red flag, being the red flag the most dangerous condition in the site and through this place -- through these flags, we inform the people how to manage their stress. Next is the emergency preparedness. We perform -- we issue emergency response plan, and we perform a lot of emergency response drills. We have doctor -- site doctors and nurse and ambulance. And with these resources, we perform our tests in our emergency drill to make sure that we are efficient should an event occur. Next is the medical check. Medical check is another important moment in which our site doctor received the fitness certification from all the hospital for all the people. And then accordingly, we classify the risk of the workers, making sure that we follow-up with them according to their medical situations. And next is the camp leisure. Perhaps one of the most important because we take care about the people 360 degree. We don't only check their condition, the physical condition, the mental condition in the construction site, but also we follow-up in their camps. We perform audit inspection. We have a welfare committee meeting made by top manager, where do we assess the performance. We make sure that they have a good food, health food, we ensure that they have a comfortable rest during the night and health situation -- health and welfare facilities. And indeed, also we perform sport events. We perform workshop and musical events to make sure that people are resting not only physically but also mentally. And I would like to close by saying that this year, we have 0 recordable injury in the -- in stress. And this means that we are performing good. Thank you very much.

Thank you, Carmelo. Thank you very much, Carmelo. So Valentina [ Marca ], could you explain us something about our corporate social responsibility initiatives worldwide.

Thank you. Thank you. Thank you, all. Good afternoon. We have seen as social sustainability has a lot of meanings. One of them means also to take care to support local communities, fostering as much as we can bear prosperity during time. We did it basically through education knowledge sharing as leverage for social and economic inclusion. And we did it since a decade in India with a very consolidated approach where private sector, academia, civil society and other social actors work together to face environmental and social challenges with very concrete actions as our CEO said. But let me give you an example that goes exactly in that way. We are in India, Bihar state, a small town along the Ganga River, where waste management is a real challenge because waste is dumped in the river ways and is becoming not only environment but also an health and sanitary issue. How to approach such a complex scenario. Starting from the local actors, we started collaborating with the Indian Institute of Technology Bombay, to design a tailor-made initiative that address the local needs. After a detailed assessment, we find some initiative that could fit with the local needs, and we promoted, first of all, awareness about the program in the local communities. But let's listen to Nilam, a university researcher that worked with us on this project.

Under the project of circular economy, solid waste management in Barahi, we applied 2 basic methods to engage with the stakeholders and create community awareness. One was where we conducted initial -- in the initial stages of the project, we conducted transit walks. We conducted MGDs, focused good discussions. And we also hired a local NGO called Aakash Ganga Rang Choupal Association. We also had a very good focus group discussions with the beneficiaries like sanitation workers, women of the households. And we also conducted a household survey. Through these exercises, it could connect to the local beneficiaries. We could also understand their challenges that they are facing in solid waste management. The second exercise that we did was that we conducted a student awareness programs, maintain competition with the help of -- with the support from local NGO, Aakash Ganga Rang Choupal Association. And they conducted about 500 different -- 500 different student competitions through which students were made aware of the segregation practices and solid waste management. Third thing that we did was that we also applied mobile app that we created called Kachra app, where the local volunteers were asked to test the app -- test the app in terms of how much waste is being generated, how much waste is being collected, which helped us, which help them also to understand the service chain of the solid waste management and it helped them to relate to the circularity of the solid waste management.

So what worked in Bihar. What first of all the engagement of the communities. So community engaged and empower plus capacity building for the local institutions that lead to awareness on the problem, but also accountability on the solution. Then the technology with the app that helped to monitor the project but also to keep alive the interest of it. And then the attention to social culture and religious aspects because we were asking for a change and tradition needs to be addressed as well. But Bihar project is not the only one. We are going to execute a new project in Odisha on the East Coast of India. Again, with the contribution of another university, National Institute of Technology of Karnataka, thanks to the cooperation with the local institution, we will execute a small biogas plant that will produce compressed gas by waste to be donated to the community kitchen for the needy people. So again, concrete actions. Multi-stakeholder approach and really wide view on the problems. And leveraging the expertise and experience of Indian models, we will thrive -- retrieve actually to extend our impacts and change that we can support worldwide through CSR. And multi-stakeholder approach is the key when we talk about CSR and we talk about local communities. And speaking on which an important stakeholder to be involved during the design on the new ideas and the put them into reality are our employees, as Stamicarbon did during last year. Isn't it, Mark?

Yes. Thank you, Valentina. My name is [ Mark Schneider ]. I'm the Head of Marketing Department at Stamicarbon, and I'm going to tell you a bit about ideas to reality. So ideas to reality is an employee challenge for Stamicarbon employees, where employees can submit an idea. And also vote on each idea. So we have multiple projects and doing a live sessions employee are presented those topic, those projects. And with this, they have a very high commitment from employees, but also very high engagement because it's colleague presenting ideas to colleagues. So the benefits of this is, of course, part of multiple stakeholders. Of course, employees benefit. This is a crucial thing or an important thing in engagement of Stamicarbon colleagues, but of course, also local communities benefit. To give you some examples of this, in 2022, the winning project was a planting 5,000 mangrove trees in India that protected the back laying agricultural land. So it really resonates with Stamicarbon's purpose to enable the world to feed itself and improve the quality of life. 2023, we sponsored an educational project in Nigeria, where we help transition students from a primary school to secondary school and enabling them because education in Nigeria is not as we expected from -- in the Western countries. This year, the winning project is a collaboration with an industry organization called Engineers Without Borders, which resonated with us a lot. It's a voluntary organization. And what they do is that they share their knowledge, share their experience, voluntary engineers to projects. By doing so, enabling projects to move forward. The project that we particularly sponsored this year is on site. This is a picture from Nigeria as well, where the local youth community collects plastic, collects garbage from the local area. So it has an immediate environmental impact. But from this plastic, they put this in a shredder and they create building blocks. So -- and they sell those building blocks, so it also becomes an economical benefit. Of course, this is done in an almost made shift shed. So what we do with our price money, we upgraded their shredder, so they can work more safely, they can be more productive and have an even bigger impact. This just one example of the Engineers Without Borders. They have a lot more projects. So this is also why we contact them also together with the group. And I'm happy to announce that we are in conversation with them to see how we can engage with them more, so we can broaden our impact. Thank you.

So thank you, Valentina. Thank you, Mark. And now I will ask and I will invite Irene and Annalisa to present us the clients, cultural relation and security on our group.

Thank you. Good afternoon, and now I will ask you some questions about security. So are you ready? No, it's a joke, of course, to raise the attention because we heard the last one. But what is paramount about security is that it's never ever a single service. Security is analyzing information, constant analyzing information and networking. So Maire Group is moving a step forward, is fostering a new era about security and duty of care, not only for our employees, but also for our clients. And this is why I'm sharing the stage with Annalisa in the International Relations because whenever we want to reach a goal in our activities, of course, we move abroad. We move in other countries. And on the other hand, our clients come to visit us in our country and in our each quarter. So what is important, as you can see, we need tangible security, but we have to take care also of the psychological part of that. So we need to understand about the traditional, cultural, social, geopolitical and sometimes situational events, important to understand how to create a safe and secure environment where to live and work in both conditions abroad and in our country. So how we can do that? Collecting and analyzing information. And of course, we need a network of people helping us on this issue. For instance, whenever a delegation come to visit us, we -- our strength as a group is the cooperation between the different departments. First of all, of course, international relations and also security Maire Group. But we need the help also of local police forces and of course, other authorities, national authorities responsible for security in our land, of course. So this is our approach. This is our attitude because our first and most important defense will be always us. Now I want to leave the stage to Annalisa that will explain better what is our policy about this business and the delegation, so.

We are talking about clients. And we are talking about cultural relations. We selected 3 pictures that are 3 important moments that highlight how important is for Maire and is in its DNA from the beginning to create a strong relationship with clients and to build a joint team in order to face complexities. Sometimes, we are seeing a very big project, a lot of difficulties, a lot of problems and just because we built a strong relationship with our client, we are facing these kind of issues in a better way. So this is why in Maire, we created a space in which clients can feel at home really, and you can see we are celebrating together local holidays like the Diwali in India. We are celebrating National Day like a special anniversary with them, but also we respect the protocol and the tradition when we go abroad and when we host them in our offices. This is super important, and we are reaching a level that is an high level. But in this moment, we would always to think about the step ahead, what we can do better, what we can do together. So we were thinking of involving more and more in our sustainability strategy, the client and giving them specific task to reach together because just together, we can be more and more sustainable. So Maire has to do together with clients this kind of part, is a journey we always say it's a teamwork. Sustainability is a teamwork. Thank you.

Thank you so much. We would like to thank all of you. Thanks. And now we would like to invite Simona Dolce, our Group Corporate Affairs, Governance, Ethics and Compliance Vice President.

Good afternoon, everyone. I'm very pleased to speak today about governance. It is my passion for more than 25 years. But before diving into governance, I show a picture that I took in Mumbai when I went last July. This is the G20 Motors, One Earth, One Family, One Future. The G20 leaders endorsed in September 2023, the OECD International Principle of Corporate Governance. These are the leading principle of corporate governance. And the G leaders, the G20 leaders told us about the necessity of a global cooperation for tackling the ESG challenge. And each one of us is involved in this challenge. And when I took this picture, I saw that at Maire, we embodied this motto. We have a lot of corporate motto I know. But I know that -- I thought that one or -- we are a multinational group, and we are present in more than 50 countries, One Family. We are a multicultural group. We count more than 80 nationalities and diversity as Sara and Francesca said, is our strength is our opportunity. One Future, you have seen in the other panel, Maire Group is an enabler of the energy transition, we are committed in taking care of our future. But now let's go inside governance. Why governance is so important in the ESG agenda because governance support and strengthen the other E and S as I mentioned, governance empowers sustainability. And in Maire, we believe in having a good corporate governance besides a business proper conduct. And we want to share our principles and our values with our whole supply chain. That's why we are implementing a supplier code of conduct. What is for us a good corporate governance? Good corporate governance needs first, to have a long-term vision. Second, we have rules and processes well defined and strictly checked. Third, we need a stronger coordination among all our activities and all our companies. And we are convinced that governance is enhancing our sustainability path. Maire Board of Directors has approved a long-term strategic plan, a 10-year strategic plan that integrates all the sustainability strategy. And we cannot have a good corporate governance without having a proper business conduct based on transparency, ethics and accountability. Transparency means that our decisions are open and clear. Also, our data, financial, nonfinancial must be understandable by our stakeholders. Ethics means that we have values and principles, and this values and principles guide us, guide our behavior, our decision-making process. And we have also to be accountable, accountable means that our decisions are taken with a sense of responsibility, also in compliance with laws and regulation. So if we had a good corporate governance, a proper business conduct based on transparency, ethics and accountability, we can foster a positive corporate culture. We can enhance the trust of our stakeholders and we can also maintain our strong reputation. And having all that, we want to build, again, you have seen in the S panel, our and the E panel, our relationship with our suppliers. That's why the supplier code of conduct, it's as an aim to implement the relationship with the supplier in order to build a sustainable supply chain in order to spread our ESG challenge. So going to the conclusion, in Maire, we are working very hard for being best-in-class in governance, transparency and also in the reporting because we want to keep on choosing my Group Maire as a partner of choice for building One Earth, One Family and One Future. Thank you. Now please join me in welcoming to the stage, Davide Ragosa, Elena Liverta and Giancarlo [indiscernible]. Thank you. Davide is our Group Corporate Affairs and Governance Head of Department, and Davide will share with us our CSRD approach. Please, Davide.

Thank you. Thank you, Simona. Good evening, everyone. Talking about the corporate social reporting directive, as known better known as CSRD is challenging because it's a new and very complex regulation. But today, instead of diving into technicalities, I want to share with you our experience. But first, let's have a look to the past. Over 10 years ago, Italy introduced the PIM quotas to ensure proper gender representation on boards. At that time, many questions about the purpose of such new relation. But today, it's natural to have female colleagues part of our Boards, participating to the decision-making and strategy decision-making process of our group. The same question is arising today, talking about the CSRD. Many are asking, what is CSRD for, but CSRD forces us to make the right question? Are we fully aware about the importance of sustainability today? And to ask to this question, I want to share with you our approach in the CSRD alignment process and the main 3 key benefits that at today, we identified, thanks to the CSRD. Talking to our approach. CSRD alignment process represents for Maire a transformative opportunity for a new point of view and awareness of sustainability. And to approach CSRD, we assessed our organization and systems and procedures. We have updated our analysis on impact and risks, and that concentrated to us to identify new opportunities for the whole group. And we set new rules and responsibility, but the most important thing is that we had the chance to identify new competencies inside our organization. Talking about the main -- 3 main key benefits. And today, we identified the following 3 main key benefits: increased awareness about the importance of sustainability in connection with our strategic goals for the future, even more stronger commitment to diversity and a new representation of our long-standing values. Talking about the increased awareness about sustainability. As Fabio said before, in the recent past, we have the chances to secure new financial instruments linked to ESG, thanks to our sustainable approach. Regarding our commitment to diversity, we have the chance to strengthen even more our commitment. And today, we have a proper gender representation in all the boards of our controlling company, always keeping in mind a meritocratic approach in any case. And for us, the new reporting on sustainability that will be published in the beginning of 2025 is an opportunity to represent our long-standing values to our stakeholders in a new way. For us, this will concern to our stakeholder to really appreciate on a new point of view, our active and concrete commitment to sustainability. Going to the conclusion, every change, especially when requested by law, can be met with reluctance. But if we embrace it, our perspective changes for Maire CSRD represent a new way of seeing things, strengthening our commitment to sustainable long-term values for our stakeholders. Thank you.

Thank you, Davide. Now I ask to Elena Liverta, our Sustainability Disclosure Reporting and Purpose Senior Manager to bring us in our first climate report and all the big effort we did for realizing it. Thank you.

Yes. Thank you, Simona. It's a pleasure to be here today as a representative of a wide working team of more than 70 professionals across our organization, from our risk and insurance management, environmental sustainability all the contract management teams and more than 30 teams from our operational projects. Last September, Maire published its first TCFD report. TCFD is recognized continues to be recognized at the international level as the main framework that allow company to communicate effectively. How they manage risks and opportunities related with climate. And the main purpose of this recommendation is to give market a confidence that the climate considerations are properly included embedded in the business strategy and the decision-making processes of the organization. So why TCFD for Maire? For a very simple reason because this report is voluntary report, marks an important step in our commitment for transparency towards our stakeholders. And because they report allow the company to be included in the industry best practitioner in terms of climate change beyond any compliance. So how we perform this analysis? We examined 2 main types of risks, starting from the physical climate-related risks. We assessed how extreme weather events. So for example, floods, hail storms, heat waves could have an impact on our business, on our operational activities economically. And we analyze these events in a short and long-term. focusing on how well our proprietary assets and operational projects can respond and adapt to these climate events. Concerning transition risk, we analyzed the changes that will come with the transition to a low carbon economy. So for example, we consider new regulations, technologies evolution, market dynamics and also societal evolutions. And while these changes can bring challenges to company, including Maire, on the other side, they also offer significant opportunities -- business opportunities. For example, especially in terms of sustainable industrial solutions. And so arriving at the final results of our analysis; one, first point, business strength, our analysis confirmed that Maire's resilient to climate risk. In the short term, we have a number of mitigation measures, concrete mitigation measures, contractual approach and insurance coverage that minimize the risk that this climate physical events point to our company. And this underscores the robustness of our business approach and also the capacity to weather immediate challenges related with climate. Looking ahead, we are conscious that the exposure to extreme climate events could increase in the next coming years. But our adaptive strategy will enable our company to respond to this increase of the climate-related events. And furthermore, the energy transition presents substantial growth business opportunities for our company. So in conclusion, our TCFD analysis shows that we are well equipped to tackle climate challenges and size new business opportunities. You can find all the complete report, methodologies and results in our website. And all the future update will be included in the next Sustainability Report under the Corporate Sustainability Reporting Directive that Giancarlo will speak about in a while. Thank you very much.

Thank you, Elena, and thank you also for these great results and climate report. And here he's Giancarlo, [indiscernible] Giancarlo is our Group Sustainability Reporting Performance and Disclosure Head of Department, and Giancarlo will bring us inside our CSRD impact on Maire's reporting. Thank you, Giancarlo.

Thank you, Simona. Good afternoon, everybody. For this last session, will talk about how sustainability reporting directive is transforming our approach to reporting, creating also value -- for creating value creation. Let's start from the first aspect. CSRD marks a fundamental shift in corporate reporting. We are moving away from stand-alone sustainability reporting towards a fully integrated approach where financial and no financial information are fully integrated. But it's not just about combining documentation. This is about understanding how sustainability drives financial performance and vice versa. For our E&C and STS business units, this means that every business decision must take into account not only the financial return, but also the sustainability impacts of our operation. Furthermore, it is also an opportunity to highlight the positive impact of our decarbonization technology, for example. Let's move now to the second aspect I want to discuss today. The focus of strategy. The directive demands more than just reporting. It requires a clear strategic vision. And for Maire, this is an opportunity to highlight how our sustainability is embedded in our day to day operation and how sustainable strategy in our company is fully integrated in our industrial plan. In general, we need to focus on setting targets, for example, setting a precise time line, allocated resources and finally establishing accountability for people. And -- okay, we can move to the next aspect. Perhaps the most important change of CFD -- TCFD is the shift from retrospective reporting to forward-looking. This means that we needed to project our sustainability trajectory, we need to identify future challenges and opportunities. We needed to identify alternative scenarios. We need to build a SaaS-based target. In this way, we can allow our stakeholders and our shareholders to understand not only where we are, but most importantly, where we are heading to. Let's move to another important aspect. It's called double materiality. CSRD requires us to assess our impact on people and planet in terms of positive and negative impacts and mitigation. On the other side, the regulation required to understand how sustainability aspect impacts our financial performance, both in terms of financial risk, but also in terms of financial opportunities. And let's go to the last aspect, very important is the perimeter. CSRD require us to extend the perimeter of analysis and beyond our direct operation. So we should consider upstream and downstream. On the upstream side, we should consider, for example, emission and social impacts of our supply chain. On the downstream, we should consider the project life cycle impacts. This new approach means that we needed to cooperate with the suppliers on one side, with clients, with business partners and with this integrated approach, we can identify possible risks. But on the other side, we can enhance business opportunities. In conclusion, at Maire, we view CSRD just not as a compliance exercise, but it's an opportunity to confirm our position as sector benchmark. We are to implement the best-in-class practices, driving innovation in sustainable engineering and finally setting the highest standards in transparency and impact reporting. CSRD represents a pivotal moment in corporate reporting, by embracing these changes proactively, we're not just preparing for compliance, but we're positioning ourselves as industry leaders in the energy transition sector. Thank you very much.

Thank you. Now I ask [ Ilaria Catastini ] to join the stage again. Thank you from the G Panel.

So we met Charlie in London. We were in London because we were having a course in the City of London School. And we met this fantastic student. We were very impressed of her vision, of her perception of the reality, the situation and so we decided to invite her, to invite her to represent the view of her generation. [ Charlie Swang ], please. Thank you very much for being here.

Thank you for inviting me.

The floor is yours.

Good afternoon. My name is [ Charlie Swang ], and I'm here today to represent the youth to share some of the common opinions amongst my generation about sustainability and to provide a fresh perspective on the energy transition. I first met representatives from the Maire company when they held a hydrogen science workshop in partnership with my school. After the event, the company reached out to me, asking if I would speak at this conference, and I was delighted to accept this opportunity. The global environmental landscape is excruciatingly difficult at the moment. Sometimes I feel as if we're all doomed, but people like me are merely screaming into a void. I constantly wonder if my small sustainable actions are actually making a difference, if I'm doing enough, if I should be doing more if it will ever be enough. I wonder if we can pull humanity away from the precipice, it feels like we're teetering on. And yet, as a young person, who bases a lot of their decisions around sustainability and always thinks about the environmental ramifications of my actions, it can feel quite isolating. A lot of the time, I feel quite frustrated by my peers. Yes, I know that many of them must be feeling the same, experiencing the same anxiety as me. A 2022 survey conducted by the charity Save the Children showed definitively that climate anxiety is rising in children in the U.K. where I'm from. 70% of participants were worried about the world foveal inherits. 60% for climate change was affecting their generation's mental health. But then why does it feel as if we're not doing enough? I put it down to 4 main reasons. Firstly, we're worried that adopting a more sustainable lifestyle will change our quality of life. We're scared, but if we embrace a more 0 waste, sustainable lifestyle, we will have to give up the luxuries we've become accustomed to. Secondly, I think there is a deep-rooted shame born from our relative privilege. We don't want to be more eco-friendly in our choices because to do that, we would have to recognize for what we were doing before was harmful and polluted our atmosphere. Thirdly, the worst impacts are most significantly felt in poorer countries. I've noticed that in high-income countries, we do not grasp the gravity of the environmental situation. Perhaps, we may be experiencing hotter summers or seeing the flowers bloom at erratic times, and we're lulled into a false sense of security. We think that, that is all that is. We say that the world has time when there are already climate refugees, when people's homes on low-lying islands are being destroyed right now. Finally, and most importantly, for disconnect, people of my generation of feeling. The thing is when I'm talking to someone, I often see the attitude displayed, but they are just one person. Even if we radically change their lifestyle, the impact on the environment will be negligible. What we don't seem to see is that if everyone adopted that attitude, so themselves as just an unimportant 1 in 8 billion. We would have 8 billion people not making a difference. I feel as if these reasons also apply to the people in power, the politicians, presidents and prime ministers who make the decisions on their nation switch to renewable energy. They walk a fine line between not alienating their supporters and the necessity of energy transition. In countries like the U.K., there is a shame around the methods of which we became a global power. It was partly for exploiting our nonrenewable resources. Now even with the discourse around climate change, we cannot really call out other countries wanting to do the same. We are hypocritical if we say that they cannot develop by burning and selling their reserves of fossil fuels because that's exactly what we did, most obviously of all the lack of urgency around global decisions. People empower feel as if they have all the time in the world. Deadlines for things such as net zero seem to be being pushed further back or scrapped entirely. Meanwhile, my generation is screaming. We want to know if it will ever be a net zero, if fossil fuels will ever be discontinued. We want to know if we will ever live in a world without deforestation, without sea levels rising, without the polar ice caps melting. We want to live without this climate anxiety. I don't want you to think that I see the energy transition in black and white. I know that this is nuanced. It's far more complex than I've been able to describe. Furthermore, when I was writing this speech, I wanted to present an accurate representation of my generation's feelings about climate change. I haven't mentioned a lot of hope because that's how many of us feel, hopeless. This company represents a little bit of hope in our fragile overheating world. I'm so grateful, but things like this event and this company exists in the world and as I'm standing here sharing my thoughts with you. Thank you.

Thank you. So Charlie is 14 years old. And now I would like to invite our Chairman, Fabrizio Di Amato for the conclusion remarks.

Thank you, Ilaria. Thank you very much for this incredible journey. Did you arrange a very, very, very interesting also for me because I managed this company since 40 years. But every time when I'm a part of this journey. For me, I received a very, very additional feedback to do, to encourage me to pushing more and more. I would like to say thank you, Charlie, for incredible speech you did, but also for the reasons about your generation as worried about, I believe of that and then we need to do the best things. But I would like to say personally, my personal, but all name also in all our organization we do the sustainability, not our best effort and blah, blah or greenwashing, no. In our organization every day, we are working to solve and trying the solution and pushing. Did you see the presentation in the beginning. The question is not the Scope 1 or Scope 2 because this is in our hands, maybe we can achieve the results earlier, maybe we can do, we can manage. But there is just 2% of being, but of the impact of the climate change. That is the thing where we are. But other way around, I don't want to be as a responsibility in the hands of clients and so on. This is our responsibility. We are the management team. We have the management team of the organization, and then we have a responsibility in front of you and your generation to solve and try what is the way to solve the solution in very, very short time. Repeat, what I can guarantee to you and all the young people, we are working on that. Every day, we are in touch with Ilaria with all the team in our organization to do and implement our things. But the second point I would like to also answer what I'm saying is after this -- your presentation, thank you to all because it was an impressive repeat again. I have in mind to do an additional things. I would like to speak and talk later on with Fabio, but especially with Sandro Bernini, unfortunately, is -- I think in China, he's arrived in China now. But to talk -- to integrate in our commercial proposition, our commercial proposition, the strong part of sustainability in term of governance, everything in climate, sustainability in terms of economics, sustainability. That's -- I would like to integrate in our commercial proposition as a part, as a key pillar of the distinctive company are in competition with the other company because some of my colleague as entrepreneur or managers say me, Fabrizio, you spend a lot of money of the sustainability, but when you can cover, what is the secret to cover this cost? What is the ideas on that? And then my answer is always the same. In my opinion, the sustainability is the future is the opportunity. If someone can drive, can check what is the best things and the best way to do, I think, has to be more and more distinctive, that's our clients appreciate and they want to have a solution also because -- also by them, they need to find a solution like the presentation they did. I just back a few a days ago, as 7 -- 6, 7 years ago. I remember very well, Charlie, when I went to the client, especially with the most of the important client, it was as oil company -- oil and gas company. When we start about to talk a green energy transition and so on, after 20 minutes the discussion, they said, okay, Mr. Di Amato, I understand everything what you are saying. I appreciate your presentation, everything is done. But now move back to the oil and gas industry because we need to develop a project to do something that. But now the situation is other is completely changed. Our clients ask many times, please do you have some solution? You incorporate a new entity as an SKM, as a technical technology solution, sustainable technology solution. What we can use for us. What we can -- what you can provide us as a technology as a solution, as a new year at the plant. That's why also we have been awarded one of the most important projects for our organization is in UAE in Abu Dhabi as Hail and Gasha, Maria, all the teams are talking about that. Hail and Gasha was the secret of Hail and Gasha, while my opinion was the 3. One is the reputation of our organization. That's important. Reputation, you can -- for build the reputation, you need to work 10, 12 for -- in my personal experience as a 40 years working on these industries, but you can destroy everything in one day. That's the reputation is one thing. The second thing was connected also our performance because we did in Abu Dhabi more than 25 -- billion of projects in this country in the last 20 years, more or less 1 billion average per year of new projects. The third one is the technology approach. That was the distinctives and then the client after the feed, the engineering phase decided to award the project to us directly negotiation without bid. That is the success. That's why I believe and convinced and pushing every day all our people to work as the best-in-class in governance and compliance. The best-in-class of diversity because I think I believe, in this movement, we increase also I see in the presentation here today as from India, we are moving around 24%, 25% as a female, as a women employees in our organization. I remember very well 10 years ago was [Technical Difficulty] I think what I'm saying also now, the agenda we are working on that, we are doing as economical as financial disciplines because repeat the sustainability is only climate has to be connect as to do in the end of the year, you need to be as a profit company. If you have a profit company, you can invest additional money to develop additional things. That's why we are moving also I hear, here that Mr. [ Gerald Benjamin ], we are discussing a few weeks ago about the transformation also in approach of new ammonia. We decided to take a challenge. We have -- Charlie, we are in the comfort zone because Stamicarbon doing urea or maybe from fossil since 1947, correct? 1947. But now we decided to move as a green ammonia is the challenge for us. But thanks to the experience we created in the past 40, 50 years, we can move. And then the courage, whether the challenge for us was to develop and pushing during the meeting, all the management team, please guys move on because this is the future. If you want to see our organization move on in the future, you need to change every day, you need to rethink what you are doing. [indiscernible] We are doing Waste to Chemical, Waste-to-X, Waste to -- I remember very well in 2018, when we started to discuss on the screen about the ideas of the waste, what we can do all the waste, not only for mechanical recycle and up cycle of what we did also in a part of the regional here as a recycle. What we can do with the CSS as a different waste, what we can do? And then in that time, I remember, we started from scratch, nothing was there. From scratch, but every day, every week, we believe on that. We believe on that. We believe on that, pushing sometimes what some problems, mistake, then again, the day after we do an increase and believe and pushing now the organization moving on alone, thanks to the ability of [indiscernible] and all the team, there is many people don't want to be just a one person because the organization are working well, if everyone are a part of the team organization. Like what Simona said that the family as we are considering Maire is an important family and that's why we are incorporated in our DNA, the sustainability is in our DNA. That's why we are moving, and we believe in the near future to deliver our strategic plan already presented in March this year, there is an incredible jump from the fossil basis to energy transition as a part of low carbon decarbonization because sometimes the only thing I would like to say you and then maybe you can have an ambassador of the new generation, especially in your school, maybe you can say someone for sure, if you ask me, what do you want to work? I would like to have a green immediately, tomorrow morning, for sure, no doubt on that. But other way around, we need to work as a real story. That's why we need to work together. The young generation has an aspiration for us, give us every day also for me as many times when after the meeting or something also with my younger son sometimes say me, pappy what we can do on that, why you not serve -- resolve this issue? Why is this that? What I can say sometime in the beginning, I'm trying to explain and sorry, but we can do what we can, our best. I'm changing now the view. I said, okay, you're right. We need to do more and more. And that's why our organization are doing a lot of job on that, and that's why we are working and we can increase Ilaria, but -- what we will say in the next Capital Markets, as already said, Fabio Fritelli, now the CEO of NextChem, I already said to him, I would like to present some new solution, we are in place as a real study, not talk, real fact. That's also today, we are discussing this morning 2 meetings. I spent, I think, 5 hours today just to update me about the technology we are developing now under developing. And what we can do in the very short time in the mid time and a long time, little bit. I don't want to do add additional thing. Just I would like to say thank you very much to all of you. Thank you, Ilaria, for very, very incredible day. The presentation was, for me, impressive. That I would like to push also my heart to help you and to pushing our organization to be disciplined, repeat as a financial discipline because without this, we cannot do anything first. Second, to our approach sustainability at 360-degree sustainability governance, many things, what have they discussed all the people before me has to be believe on that. The third one has to be approaching with the new generation as input in and out. If we can working on that, with them, we can deliver the best things we need and the word that we need. Thank you very much to all.

Yes. So thank you to our Chairman. Thank you to all the speakers. Thank you to the Sustainability team to the Communication Department colleagues that make a great job today. Thank you to the people who were following us by remote. See you next year.