ivg-2024-12-31-en

Contents 1

CONTENTS


BOARD OF DIRECTORS AND AUDITOR ................................................................................................................................	2
LETTER FROM THE CHAIR AND THE CHIEF EXECUTIVE OFFICER .......................................................................................	4
BOARD REPORT ...................................................................................................................................................................	7
INTRODUCTION ............................................................................................................................................................	7
PRESENTATION OF FINANCIAL AND CERTAIN OTHER INFORMATION .........................................................................	7
SUSTAINABILITY STATEMENT ......................................................................................................................................	9
COMPLEMENTARY INFORMATION ................................................................................................................................	137
REPORT ON OPERATIONS ............................................................................................................................................	144
SELECTED FINANCIAL DATA .....................................................................................................................................	144
RISK FACTORS .........................................................................................................................................................	145
BUSINESS OVERVIEW ..............................................................................................................................................	154
RESEARCH AND DEVELOPMENT ..............................................................................................................................	168
HUMAN RESOURCES ................................................................................................................................................	170
OPERATING AND FINANCIAL REVIEW .......................................................................................................................	171
RISK MANAGEMENT AND INTERNAL CONTROL SYSTEM .........................................................................................	193
GOVERNANCE STATEMENT .....................................................................................................................................	201
REMUNERATION REPORT ........................................................................................................................................	222
MAJOR SHAREHOLDERS ..........................................................................................................................................	239
SUBSEQUENT EVENTS AND FINANCIAL GUIDANCE .................................................................................................	240
IVECO GROUP CONSOLIDATED FINANCIAL STATEMENTS AT 31 DECEMBER 2024 .............................................................	242
CONSOLIDATED INCOME STATEMENT .....................................................................................................................	243
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME ..................................................................................	244
CONSOLIDATED STATEMENT OF FINANCIAL POSITION ...........................................................................................	245
CONSOLIDATED STATEMENT OF CASH FLOWS .......................................................................................................	247
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY ...........................................................................................	249
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS ......................................................................................	250
COMPANY FINANCIAL STATEMENTS AT 31 DECEMBER 2024 ...............................................................................................	325
INCOME STATEMENT ................................................................................................................................................	326
STATEMENT OF FINANCIAL POSITION ......................................................................................................................	327
NOTES TO THE COMPANY FINANCIAL STATEMENTS ...............................................................................................	328
OTHER INFORMATION ..........................................................................................................................................................	351
INDEPENDENT AUDITOR’S REPORT .....................................................................................................................................	352
LIMITED ASSURANCE-REPORT OF THE INDEPENDENT AUDITOR ON THE SUSTAINABILITY STATEMENT ..........................	361

Iveco Group N.V.

Corporate Seat: Amsterdam, the Netherlands

Principal Office and Business Address: Via Puglia n. 35, Turin, Italy

Share Capital: €3,454,589.70 (as of 31 December 2024)

Chamber of Commerce of the Netherlands: reg. no. 83102701

Board of Directors and Auditor 2

BOARD OF DIRECTORS

AND AUDITOR


BOARD OF DIRECTORS(a)	INDEPENDENT AUDITOR
Chairperson	Deloitte Accountants B.V.
Suzanne Heywood
Chief Executive Officer(b)
Olof Persson
Senior Non-Executive Director
Lorenzo Simonelli(1)(*)
Non-Executive Directors
Judy Curran(1)(*)
Tufan Erginbilgic(2)(3)(*)
Essimari Kairisto(1)(*)
Linda Knoll(2)(3)(*)
Alessandro Nasi(2)(3)

(1) Member of the Audit Committee

(2) Member of the Human Capital and Compensation Committee

(3) Member of the Environmental, Social and Governance (ESG) Committee

(*) Independent Director

(a) As appointed by the Annual General Meeting held on 17 April 2024.

(b) Mr. Gerrit Marx has been Chief Executive Officer and member of the Board until 30 June 2024. Mr. Olof Persson succeeded Mr. Gerrit Marx as Chief Executive Officer, effective 1 July

2024.

Disclaimer

Statements other than statements of historical fact contained in this document, including competitive strengths; business strategy; future

financial position or operating results; budgets; projections with respect to revenue, income, earnings (or loss) per share, capital expenditures,

dividends, liquidity, capital structure or other financial items; costs; and plans and objectives of management regarding operations and products,

are forward-looking statements. These statements may include terminology such as “may”, “will”, “expect”, “could”, “should”, “intend”, “estimate”,

“anticipate”, “believe”, “outlook”, “continue”, “remain”, “on track”, “design”, “target”, “objective”, “goal”, “forecast”, “projection”, “prospects”, “plan”,

or similar terminology. Forward-looking statements are not guarantees of future performance. Rather, they are based on current views and

assumptions and involve known and unknown risks, uncertainties and other factors, many of which are difficult to predict and/or are outside the

Company's control. If any of these risks and uncertainties materialise (or they occur with a degree of severity that the Company is unable to

predict) or other assumptions underlying any of the forward-looking statements prove to be incorrect, including any assumptions regarding

strategic plans, the actual results or developments may differ materially from any future results or developments expressed or implied by the

forward-looking statements. Factors, risks and uncertainties that could cause actual results to differ materially from those contemplated by the

forward-looking statements include, among others: the continued uncertainties related to the unknown duration and economic, operational and

financial impacts of ongoing and/or threatened international conflicts and geopolitical tensions; supply chain disruptions and global logistic

constraints, including, industry capacity constraints, supplier viability issues, material availability and relevant price volatility; increased

vulnerability to cybersecurity or data privacy incidents, also due to potential massive availability of Generative Artificial Intelligence; the many

interrelated factors that affect consumer confidence and worldwide demand for capital goods and capital goods-related products, including

demand uncertainty caused by current macroeconomic and geopolitical issues; changes in government policies regarding banking, monetary

and fiscal policy; legislation, particularly pertaining to capital goods-related issues such as the environment, debt relief and subsidy program

policies, trade and commerce and infrastructure development; government policies on international trade and investment, including sanctions,

import quotas, capital controls and tariffs; volatility in international trade caused by the imposition of tariffs, sanctions, embargoes, and trade

wars; actions of competitors in the various industries in which we compete; development and use of new technologies and technological

difficulties; the interpretation of, or adoption of new, compliance requirements with respect to engine emissions, safety or other aspects of our

products; production difficulties, including capacity and supply constraints and excess inventory levels; labour relations; interest rates and

currency exchange rates; inflation and deflation; energy prices; our ability to obtain financing or to refinance existing debt; price pressure on new

and used vehicles; the resolution of pending litigation and investigations on a wide range of topics, including dealer and supplier litigation, follow-

on private litigation in various jurisdictions after the settlement of the EU antitrust investigation of the Iveco Group announced on 19 July 2016,

intellectual property rights disputes, product warranty and defective product claims, and emissions and/or fuel economy regulatory and

Board of Directors and Auditor 3

contractual issues; security breaches, cybersecurity attacks, technology failures, and other disruptions to the information technology

infrastructure of Iveco Group and its suppliers and dealers; security breaches with respect to our products; further developments of geopolitical

threats which could impact our operations, supply chains, distribution network, as well as negative evolutions of the economic and financial

conditions at global and regional levels; political and civil unrest; volatility and deterioration of capital and financial markets, including other

pandemics, terrorist attacks or acts of war in Europe and elsewhere; our ability to realise the anticipated benefits from our business initiatives as

part of our strategic plan; our failure to realise, or a delay in realising, all of the anticipated benefits of our acquisitions, joint ventures, strategic

alliances or divestitures and other similar risks and uncertainties, and our success in managing the risks involved in the foregoing.

Forward-looking statements are based upon assumptions relating to the factors described in this report, which are sometimes based upon

estimates and data received from third parties. Such estimates and data are often revised. Actual results may differ materially from the forward-

looking statements as a result of a number of risks and uncertainties, many of which are outside Iveco Group’s control. Except as otherwise

required by applicable rules, Iveco Group expressly disclaims any intention to provide, update or revise any forward-looking statements in this

document to reflect any change in expectations or any change in events, conditions or circumstances on which these forward-looking statements

are based. Further information concerning Iveco Group, including factors that potentially could materially affect Iveco Group’s financial results, is

included in Iveco Group’s reports and public filings under applicable regulations.

Additional factors which could cause actual results and developments to differ from those expressed or implied by the forward-looking

statements are included in the section “Risk Factors” of this Report.

All forward-looking statements by Iveco Group or persons acting on the behalf of Iveco Group are expressly qualified in their entirety by the

cautionary statements contained herein or referred to above.

Letter from the Chair and the Chief Executive Officer 4

LETTER FROM THE CHAIR AND THE CHIEF

EXECUTIVE OFFICER

DEAR SHAREHOLDERS,

This past year has been a transformative period for Iveco Group, marked by significant progress as we continue to shape the future of transport.

We made steady progress towards the energy transition, advancing in areas such as alternative propulsion, digitalisation, financial discipline –

and our commitment to responsible business practices.

These developments took place against a backdrop of geopolitical uncertainty and economic volatility, which affected global trade, energy

markets and supply chains. To stay resilient and competitive we took an assertive approach: we designed, produced and delivered increasingly

efficient and forward-thinking products and services for our customers.

We are proud of what we achieved in 2024, a year that saw us meet or exceed all our financial targets for the third consecutive year.

Each of our five business units, along with the teams supporting them, worked with determination to manage costs and maintain strong pricing

discipline. This approach helped offset the impact of lower volumes in some areas of our businesses.

Our sincere thanks go to our employees around the world, as well as to you, our shareholders, for your continued confidence in Iveco Group’s

ability to deliver long-term value.

FINANCIAL HIGHLIGHTS

We are pleased to report a strong financial performance for Iveco Group in 2024, a year that saw the introduction of several important products.

Moreover, to counterbalance a 4% drop in Industrial Activities Net Revenues compared to 2023, we maintained positive pricing discipline and

carefully managed costs. As a result, the adjusted EBIT margin for Industrial Activities reached 5.7%, up 30 basis points from the previous year.

Free cash flow(1) generation also ended the year at the upper end of guidance, at €402 million.

Throughout the period, we successfully launched the Model Year 2024 product line-up for trucks and vans, while – as said – maintaining a firm

approach to pricing. Customer feedback has been positive, reflected in a substantial increase in Heavy-Duty Truck orders, both sequentially and

year-over-year. We deliberately kept production capacity below market demand, supporting dealers in their efforts to ensure a smooth phase-out

of Model Year 2022 stock. The transition to Model Year 2024 is now largely complete for Medium and Heavy-Duty Truck, with Light-Duty Truck

set to follow suit during first quarter 2025, as planned.

Our Bus business unit strengthened its leadership in Europe’s Intercity segment, securing 50.5% market share for the full year. We also saw

impressive growth in the European City Bus segment, finishing the year as the second biggest player, with a 19.6% market share. In the Electric

City Bus sub-segment, we also ranked second in Europe, with a 14.2% market share at year-end. Beyond Europe, we made notable gains in

South America, doubling our market share from 4% in 2023, to 8% in 2024.

Our Powertrain business managed its cost base with remarkable efficiency, reducing the breakeven point and increasing its resilience to face

challenging industry conditions. Despite sharp volume declines, these measures enabled Powertrain to end the year with an adjusted EBIT

margin that was up year-over-year by 30 basis points.

(1) This is a non-EU-IFRS financial measure. Refer to the Board Report, section “Operating and Financial Review” for information regarding the non-EU-IFRS financial measures used by

the Group and the reconciliation between the non-EU-IFRS financial measure and the most comparable EU-IFRS financial measure.

Letter from the Chair and the Chief Executive Officer 5

Our Defence business unit achieved double-digit margins, successfully delivering a robust multi-year order book. And, as we announced on

7th February of 2025, in view of the different trends in the commercial vehicles and defence markets, and the increasingly different requirements

for the long-term success of both businesses, our Board of Directors is considering separating the Defence business during 2025 through a spin-

off. A separation could simplify the Group structure, increase management focus and create strategic flexibility for both businesses. The Board will

provide an update on the outcome of this assessment in due course.

Finally, Financial Services again contributed significantly to the Group’s aggregated figures through optimised funding that benefited the entire

Company. The business unit’s Net Revenues grew by a full 13% year-on-year, with a solid Return on Assets of 2%, primarily driven by the team’s

ability to retain a higher average receivables portfolio. Partnerships were reinforced as seen in the renewal of our joint ventures with Santander

and BNP Paribas for the management of our retail business, and with CNH for the management of their receivables in EMEA. Further, we scaled

up market coverage for GATE by adding two European countries – France and Germany – in line with our business plan.

In view of the overall positive results and good performance of the various businesses, our Board of Directors recommends issuing an annual

cash dividend of €0.33 per common share, totalling approximately €90 million. This proposal remains subject to formal approval at the Annual

General Meeting on 16th April 2025.

GROWTH STRATEGY

While 2024 was a year of change in terms of geopolitical trends and market conditions, at Iveco Group we saw it as an opportunity to drive growth

and innovation.

We focused on building an increasingly resilient supply chain, actively participating in the collective effort to embrace zero-emission mobility, and

advancing our multi-energy offering designed to support each of our unique customers through this shift. And we made sure our extensive Iveco

Group dealer and distribution network knew they could count on us. All of this, combined with our ongoing investments in technology, prepared us

to perform well during the change. Allow us to mention a few specific examples.

On 14th March we hosted our first Capital Markets Day, where we unveiled Iveco Group’s Strategic Business Plan. Having achieved well ahead of

schedule the key targets for 2026 that we had set in 2021, we presented our new business ambitions and financial targets for the mid- and long-

term.

In April, our Board of Directors announced a leadership transition, with Olof Persson succeeding Gerrit Marx as Chief Executive Officer from

1st July 2024. Having served as an independent director on the Board since the Group’s founding, Olof was closely involved in shaping our

strategic direction, including the development of the new plan presented at Capital Markets Day. His executive leadership experience, deep

industry knowledge, and strong understanding of Iveco Group not only ensure continuity, but also offer renewed energy as we move forward.

In September, we had the opportunity to showcase our multi-energy strategy and introduce some new products at IAA Transportation in

Hannover, Germany. At the heart of our exhibition was the state-of-the-art Model Year 2024 range of trucks and vans, designed to strengthen our

leadership in Light-Duty Truck and reposition us in Heavy-Duty Truck, with products that have everything they need to compete with the best-in-

class. We also featured FPT Industrial’s XCursor 13-litre multi-fuel engine, which can operate on diesel, natural gas or hydrogen. Among the

product launches at the show were our electric heavy-duty rigid truck, our eMoovy full-electric light chassis cab, our new 9-litre hydrogen-powered

engine, and prototypes of an engine powered by hythane (a blend of hydrogen and methane) and a new electrified axle for light commercial

vehicles.

Elsewhere, we continued reshaping and expanding our distribution network. In November we transferred IVECO’s Nordic distribution operations

to Hedin Mobility Group, strengthening our reach across Denmark, Finland, Norway and Sweden.

And we ended the year as planned, announcing on 3rdJanuary 2025 that the ownership of MAGIRUS and its affiliates performing firefighting

business was transferred to Mutares, a German private equity company. This move ensured that MAGIRUS remains competitive in this specialist

market.

SUSTAINABILITY AT OUR CORE

This year we have embraced the Corporate Sustainability Reporting Directive (CSRD), integrating our key ESG indicators into this Annual Report

for the first time. Aligning with the new European framework not only reinforces our sustainability commitment but also drives stronger business

performance.

Our focus on sustainable business practices continued to guide our operations throughout the year. We achieved EDGE Certification for our

commitment towards workplace gender equality, making us the first in our industry to obtain this recognition. This not only reflects that we hold

ourselves accountable to the highest standards in workplace equity and inclusion, it also satisfies our goal of obtaining third-party certification of

gender pay equity across the organisation, two years ahead of schedule.

Our sustainability efforts were also recognised with a Platinum Medal in the EcoVadis Sustainability Rating, placing us in the top 1% of over

150,000 companies assessed globally. Additionally, we maintained our place in the prestigious Dow Jones Sustainability Indices for both Europe

and World, achievements based on our performance and management of Environmental, Social and Governance (ESG) risks, opportunities and

impacts.

Our commitment to sustainable products was highlighted by several industry awards, including ‘Sustainable Truck of the Year 2024’ and ‘Electric

Van Breakthrough of the Year’ for the IVECO electric Daily. Also, our IVECO BUS E-WAY H2 hydrogen-powered bus won the ‘International

Sustainability Award 2024’ and FPT Industrial’s XCursor 13-litre multi-fuel engine won the ‘Alternative Engine Award’.

Letter from the Chair and the Chief Executive Officer 6

2025 OUTLOOK

Our forecasts for 2025 reflect our expectations for a two-speed year: lower activity in the first half, with recovery in the second. We forecast

heavy-duty trucks in Europe at between 280-290 thousand registrations, signalling a stabilisation of the market. For medium-duty trucks, we

expect volumes to be slightly down compared to 2024 and for light-duty trucks, our European industry forecast is mainly flat versus 2024.

We will continue to monitor our production capacities, with particular attention to managing costs and supporting the phase-in of Model Year 2024

for Truck. Meanwhile, our Bus and Defence order books remain strong, and we are maintaining a rigorous approach to cost management in

Powertrain, to support profitability.

In 2025 and 2026 we will accelerate our Efficiency Programme, reprioritising certain investments to reduce our operational spending and save

€300 million (CapEx and OpEx), but without affecting our product pipeline.

Our state-of-the-art product offering, broad network of dealers and service points, and in-house battery production give the potential for Iveco

Group to become the leader in the electric sector. We are on track to increase the output of all our electric products and well positioned to meet

the upcoming European emission standard regulation.

So, our Full Year 2025 preliminary financial guidance is based on the current industry outlook and solid order backlogs, coupled with a constant

pricing discipline and focus on cost management. As disclosed in our 2024 full year and fourth quarter press release, our 2025 preliminary

financial guidance for the year is as follows:

At consolidated level:

▪ Group Adjusted EBIT at between €980 and €1,030 million.

And for Industrial Activities:

▪ Net Revenues (including currency effects) to be flat year-over-year.

▪ Adjusted EBIT from Industrial Activities at between €850 and €900 million.

▪ Free Cash Flow at between €400 and €450 million.

A MILESTONE YEAR

2025 marks a special milestone for us as we celebrate 50 years of IVECO. Our incredible brand has evolved over the decades into the Iveco

Group of today. Throughout the year we will be hosting events and initiatives that reflect our rich history, Italian heritage and commitment to

innovation. We look forward to celebrating with our customers, partners and employees worldwide.

At the heart of our success is a shared determination to go beyond, challenge expectations and deliver real value. With your trust and support we

will continue to build a stronger and more successful Iveco Group.

Yours sincerely,

Suzanne Heywood Olof Persson

Chair, Iveco GroupChief Executive Officer, Iveco Group

Board Report Presentation of Financial and Certain Other Information 7

BOARD REPORT

INTRODUCTION

Iveco Group N.V. (the “Company” and together with its subsidiaries the “Iveco Group” or the “Group”) was incorporated as a public limited

company (naamloze vennootschap) under the laws of the Netherlands on 16 June 2021. The Company’s corporate seat is in Amsterdam, the

Netherlands, and its principal office and business address is Via Puglia n. 35, Turin, Italy. The Company is registered with the trade register of the

Chamber of Commerce of the Netherlands (Kamer van Koophandel) under number 83102701. The Netherlands is the Company’s home member

state for the purposes of the EU Transparency Directive (Directive 2004/109/EC, as amended by Directive 2013/50/EU). Unless otherwise

indicated or the context otherwise requires, the terms “we”, “us” and “our” refer to Iveco Group N.V. together with its subsidiaries.

The Company was formed in the context of the separation ("the Demerger") of the Commercial and Specialty Vehicles business, the Powertrain

business as well as the related Financial Services business from CNH Industrial N.V. The Demerger became effective on 1 January 2022 (the

“Effective Date”), and the Company ultimately began to act as a holding for the Iveco Group, also providing for central treasury activity in the

interest of Group’s subsidiaries.

On 3 January 2022, the Company’s Common Shares started trading on Euronext Milan (previously named the Mercato Telematico Azionario), a

regulated market operated by Borsa Italiana S.p.A. in Milan, Italy. As a result of the listing, the Company became a Dutch Public Interest Entity

(OOB) on 3 January 2022.

Iveco Group N.V. is a global automotive leader that, through its various businesses, designs, produces and sells trucks, commercial vehicles,

buses, and defence vehicles, in addition to a broad portfolio of powertrain applications. In addition, Iveco Group's Financial Services segment

offers a range of financial products and services to dealers and customers.

Until the end of 2024 Iveco Group also designed, produced and sold fire fighting vehicles under MAGIRUS brand. On 13 March 2024, Iveco

Group and Mutares SE & Co. KGaA announced the signing of a definitive agreement for the transfer of ownership of Magirus GmbH and its

affiliates performing Fire Fighting business. The transfer was completed on 3 January 2025. According to IFRS 5 Non-current Assets Held for

Sale and Discontinued Operations, as the sale became highly probable in March 2024, the Fire Fighting business met the criteria to be classified

as a disposal group held for sale and discontinued operations. In accordance with applicable accounting standards, the figures in the Income

Statement and Statement of Cash Flows for 2023 comparative periods have been represented consistently.

PRESENTATION OF FINANCIAL AND CERTAIN

OTHER INFORMATION

Iveco Group reports quarterly and annual consolidated financial results prepared in accordance with International Financial Reporting Standards

(IFRS) as issued by the International Accounting Standards Board (IASB) and adopted by the European Union (EU-IFRS), and with the euro as

the presentation currency. The tables and discussion related to the financial results of the Company and its segments shown in this Report are

prepared in accordance with EU-IFRS and, unless otherwise indicated, all financial data set forth in this Report are expressed in euro.

As of 31 December 2024, Iveco Group reports its operations under five reportable segments: Truck, Bus, Defence, Powertrain, and Financial

Services. These operations are reported as Continuing Operations. The activities carried out by Truck, Bus, Defence, and Powertrain, as well as

corporate functions, are collectively referred to as “Industrial Activities”. As previously mentioned, Fire Fighting business is reported as

Discontinued Operations.

Certain financial information in this report has been presented by geographic region. Our geographic regions are: (1) Europe; (2) South America;

(3) North America and (4) Rest of World. The geographic designations have the following meanings:

▪ Europe: member countries of the European Union, European Free Trade Association, the United Kingdom, Ukraine and Balkans;

▪ South America: Central and South America, and the Caribbean Islands;

▪ North America: United States, Canada and Mexico; and

▪ Rest of World: Continental Asia (including Türkiye and Russia), Oceania and member countries of the Commonwealth of Independent States,

the African continent and Middle East.

Board Report Presentation of Financial and Certain Other Information 8

Certain industry and market share information in this report has been presented on a worldwide basis which includes all countries. In this Report,

management estimates of past market-share information are generally based on registrations of equipment in most of Europe, Brazil, and various

Rest of World markets, and on retail and shipment unit data collected by a central information bureau appointed by equipment manufacturers

associations, including the ANFAVEA in Brazil, as well as on other shipment data collected by an independent service bureau. Commercial

Vehicles regions are defined as follows: Europe (the 27 EU countries where Commercial Vehicles competes and for which market data are

available, excluding the United Kingdom and Ireland, for market share and total industry volume (TIV) reporting purposes), South America (Brazil,

Argentina), and Rest of World (Russia, Türkiye, South-East Asia, Australia, New Zealand). Iveco Group Light Commercial Vehicles (LCV)

Professional Cab-Chassis only considers the major 14 European markets. Professional Cab-Chassis TIV is based on estimates subject to

ongoing review and improvement; this supervision approach may lead to changes in Iveco Group market share, even in past periods. In addition,

there may be a period of time between the shipment, delivery, sale and/or registration of a unit, which must be estimated, in making any

adjustments to the shipment, delivery, sale, or registration data to determine our estimates of retail unit data in any period.

Board Report Sustainability Statement 9

SUSTAINABILITY STATEMENT

1. GENERAL DISCLOSURES (ESRS 2)

1.1 GENERAL BASIS FOR THE PREPARATION OF THE SUSTAINABILITY STATEMENT (BP1, BP2)

Iveco Group's 2024 Sustainability Statement was prepared in accordance with the European Sustainability Reporting Standards (ESRS)

developed by the European Financial Reporting Advisory Group (EFRAG). Although the adoption of the Corporate Sustainability Reporting

Directive (CSRD) in the Netherlands is still pending, the Group has chosen to take a proactive approach by voluntarily adhering to the ESRS.

The Iveco Group Sustainability Statement aims to give stakeholders a comprehensive overview of the Group's operations, integrating its financial

results and economic commitments with its environmental and social ones.

Sustainability Statement contents are selected through a process of exchange and comparison across Iveco Group's internal departments,

facilitated by a network of representatives within the different organisational areas that oversee the implementation of initiatives and the reporting

of sustainability performance.

The Statement's contents are defined based on the results of the double materiality assessment to provide as complete a representation as

possible of the relevant information, outlining environmental and social action priorities and timeframes, to enable a thorough evaluation by

stakeholders.

Unless otherwise indicated, the terms ‘Iveco Group’, ‘Group’, and ‘Organisation’ refer to Iveco Group together with all its subsidiaries (also called

‘legal entities’, ‘companies’, and ‘group of companies’). 'Company' refers to Iveco Group N.V.

The annual reporting period of the Sustainability Statement covers information and data for the year 2024 – which coincides with the calendar

year – for the whole of Iveco Group worldwide as consolidated in the 2024 Annual Report as at 31 December 2024. The Statement therefore

covers 100% of the Group's activities.

The qualitative and quantitative information presented in the Sustainability Statement encompasses the Group's upstream and downstream value

chain, highlighting the material topics deemed significant, including beyond corporate boundaries.

Unless otherwise indicated, the definitions of short-, medium-, and long-term align with those of the ESRS.

Unless otherwise indicated, 'n/a' in tables stands for 'not applicable'.

Approach to Data Calculation

Any significant restatement of data or information from the previous reporting period is explicitly noted in the relevant sections, in either the text or

the accompanying tables. Changes in performance compared to previous years are calculated using all available decimal places to ensure

accuracy. Additionally, all target achievement dates refer to the end of the year, specifically to 31 December of the year indicated.

Several base years were selected when setting Iveco Group's targets, for the following reasons:

▪ 2019 (for targets regarding CO2 emissions reduction, environmental aspects, safety and educational activities) – to allow comparability with

performance results achieved prior to the impact of various external factors (i.e., the pandemic, supply chain disruptions, and gas price rises as

a result of the war in Ukraine)

▪ 2021 (for newly established targets for collaboration projects with suppliers and the Net Promoter Score) – being the first available year for

tracking these specific new targets

▪ 2022 (for targets regarding Scope 3 emissions) – to standardise all Scope 3 targets following the revision of Iveco Group's product use target,

which was modified to align with new regulatory requirements and the Organisation's updated Strategic Business Plan.

Board Report Sustainability Statement 10

Sources of Estimation and Outcome Uncertainty

Most data reported in the Sustainability Statement was prepared using internal tools, while certain sustainability metrics were based on

judgements, estimates, and assumptions. Where available, Iveco Group uses reputable external sources and historical data, reviewing and

updating its approach regularly. However, these methods involve inherent uncertainties. This means that, when data was unavailable or

incomplete, it was supplemented with data based on estimates and assumptions. This is outlined in the table below, together with references to

the relevant Sustainability Statement sections where further details are provided.


Section	Data that was estimated
3.5 Climate Metrics (under 3. Climate Change)	Unavailable data for some non-manufacturing sites
3.5 Climate Metrics (under 3. Climate Change)	Unavailable data for Scope 3 categories 6, 7, 11, and 12
4.5.1 Our Operations (under 4. Pollution of Air)	Unavailable data on NOX, SO X, and dust emissions for some non-manufacturing sites
5.5 Water Consumption (under 5. Water Resources)	Unavailable data for some non-manufacturing sites
6.3.1 Resource Inflow Actions, Targets, and Metrics – Technical raw materials (under 6. Resource Use and Circular Economy)	For recycled content, estimates were based on a sample of data for vehicles produced in Europe, reflecting the respective material compositions reported
6.4.1 Waste Actions, Targets, and Metrics (under 6. Resource Use and Circular Economy)	Unavailable data for some non-manufacturing sites

Governance and Economic Data Calculation

Financial data was sourced directly from the Annual Report or through dedicated IT tools used by the Finance Department for ad hoc data

collection.

Figures in currencies other than Euro were converted at the yearly average exchange rate as at 31 December 2024.

Environmental Data Calculation

Regarding both environmental and energy performance , normalised production unit indexes were defined specifically to track the respective

medium- and long-term performance trends. This approach emphasises performance improvements due to process optimisation rather than

fluctuations in production volumes.

Performance indicators are calculated on the total number of manufacturing hours, defined as the hours of presence of hourly employees

within the manufacturing scope required to manufacture a product.

Values expressed in tons refer to metric tons/tonnes (1,000 kilos).

The Group's environmental data – including performance indicators such as energy consumption, Scope 1 and 2 emissions, water usage, and

waste generation – is presented according to two distinct reporting scopes:

▪ Group-Wide: this scope encompasses all Iveco Group entities and sites, providing a comprehensive overview of the Organisation's

environmental performance as a whole

▪ Focus Area: this scope includes only production areas within manufacturing plants, identified as having the greatest impact on environmental

performance, providing a targeted view of the scope with the greatest influence.

(1) In this section of the Annual Report, the marine engines production line and the FPT Industrial ePowertrain plant in Turin (Italy) are treated as part of the Torino Motori plant and of the

Torino Driveline plant, respectively.

Board Report Sustainability Statement 11

Focus Area Scope


Plant	Country
Vysoke Myto	Czech Republic
Annonay	France
Bourbon-Lancy	France
Rorthais	France
Ulm	Germany
Bolzano	Italy
Brescia Truck	Italy
Brescia Firefighting	Italy
Foggia Powertrain	Italy
Piacenza	Italy
Suzzara	Italy
Torino Driveline	Italy
Torino Motori	Italy
Vittorio Veneto	Italy
Madrid	Spain
Valladolid	Spain
Cordoba Truck	Argentina
Cordoba Powertrain	Argentina
Sete Lagoas Truck	Brazil
Sete Lagoas Defence	Brazil
Sete Lagoas Powertrain	Brazil
Chongqing	China

The Group-Wide scope in 2024 included, in addition to the aforementioned plants, a further 6 manufacturing sites(1) along with Group spare parts

warehouses, research laboratories, test tracks, and office buildings.

Social Data Calculation

Own workforce refers to the entire corporate scope as at 31 December 2024, and is reported as the headcount number, unless otherwise

specified.

Employees are divided into 4 main categories: Hourly, Salaried, Professional, and Manager. Professional encompasses all individuals in

specialised roles. Manager refers to individuals in manager/senior professional roles and above. All categories include both full-time and part-time

employees.

Investment data for local communities is categorised as per the principles set out in the Business for Societal Impact (B4SI) Framework. Data is

based on accounting data and methods, and also includes estimates.

Other

In March 2024, Iveco Group announced an agreement with the listed private equity investor Mutares SE & Co. KGaA to transfer the ownership of

Magirus GmbH and its affiliates conducting firefighting business under the Brand MAGIRUS. The transfer was completed on 3 January 2025. The

2024 data was not affected by this operation and, unless otherwise specified, Fire Fighting business is included in this sustainability reporting

cycle.

Information regarding specific circumstances, and their impact on the preparation of the Sustainability Statement, is provided in the corresponding

sections, along with the related disclosures.

(2) Except as discussed in the section ‘Compliance with the Dutch Corporate Governance Code’ in this Report.

(3) The Board of Directors does not include representation from employees or other workers.

(4) Available on the corporate website.

Board Report Sustainability Statement 12

1.2 THE BOARD OF DIRECTORS AND ITS COMMITTEES (GOV-1, GOV-2)

Iveco Group is a public limited liability company (naamloze vennootschap) incorporated and organised under Dutch law. While its corporate seat

is in Amsterdam (the Netherlands), its principal place of business and effective management is in Turin (Italy). Its Common Shares are listed on

Euronext Milan, managed by Borsa Italiana S.p.A. Accordingly, the Company complies with Dutch law, Italian financial market rules, and the best

practice provisions(2) of the Dutch Corporate Governance Code (DCGC). The DCGC's aim is to ensure a sound and transparent system of checks

and balances within Dutch listed companies by regulating relationships within the board of directors and between the board and the company's

shareholders.

Iveco Group has a one-tier board structure(3) that is charged with top-level administrative, management, and supervisory responsibilities. It

comprises Executive Directors and Non-Executive Directors, collectively referred to as ‘Directors’. The Board as a whole is responsible for the

strategy and the continuity of the Company and its businesses. Each Director has an obligation to the Company to properly perform the duties

assigned under or pursuant to the law or the Articles of Association, and to act in the Company's corporate interest, which extends to the interests

of all its stakeholders, including shareholders, creditors, and employees.

The Executive Directors are primarily responsible for overseeing the Company's day-to-day operations. The Non-Executive Directors supervise (i)

the Executive Directors' policies and performance of duties and (ii) the Company's general affairs and business, rendering both solicited or

unsolicited advice and direction to the Executive Directors. The applicable rules and the Company's Articles of Association do not provide for the

representation of employees or other workers on the Board.

In 2024, no Board member held a comparable position in public administration (including regulatory bodies) in the 2 years prior to their

appointment.

As at 31 December 2024, the Board was composed of 8 Directors, with 2 (25%) serving as Executive Directors (one with the title of Chairperson –

Suzanne Heywood – and one with the title of Chief Executive Officer – Olof Persson), and 6 (75%) as Non-Executive Directors. Of the total

Directors, 50% were male and 50% female, all were appointed for a term lasting until the Company's Annual General Meeting in 2025, and 5 met

the DCGC's independence requirements. No Board member was under 30 years of age; 1 member was in the 30-50 age group, and 7 members

in the over-50 age group.

Iveco Group Board of Directors – Overview

As at 31 December 2024


Director	PERSONAL INFORMATION			IVECO GROUP DIRECTORSHIP
Director	Born in	Gender Identity(a)	Geographic Diversity	Executive	Independent	Year of Initial Appointment
Suzanne Heywood	1969	F	UK	Yes	No	2022
Olof Persson	1964	M	SE	Yes	No	2022
Lorenzo Simonelli(b)	1973	M	CH-IT-UK-USA	No	Yes	2022
Judy Curran	1961	F	USA	No	Yes	2024
Tufan Erginbilgic	1959	M	TR-UK	No	Yes	2022
Essimari Kairisto	1966	F	DE-FIN	No	Yes	2022
Linda Knoll	1960	F	USA	No	Yes	2022
Alessandro Nasi	1974	M	IT	No	No	2022

(a) Gender identity is defined as an individual's internal sense of being male (M), female (F), both (B), neither (N), or something else (SE).

(b) Senior Non-Executive Director.

In line with its regulations, its composition guidelines(4), and the Company's Diversity, Equity & Inclusion Policy, the Board of Directors is

composed of individuals who bring the appropriate skills and experience needed for a company of Iveco Group’s size, geographic reach, and

business focus. These competencies include expertise on general and industry-specific management, international business, Environmental,

Social and Corporate Governance (ESG), quality and regulations, finance and accounting, human resources, information technology and digital

(namely cybersecurity), marketing, and governmental and public affairs, all aligned with Iveco Group's business mission. The Company believes

that bringing different perspectives into the boardroom creates more effective discussions. To this end, appropriate diversity criteria (including

age, gender, and cultural and professional background) are applied to ensure a broad range of views on the Board. Combined with the skills and

expertise of the Board members, these different perspectives support a deeper understanding of current affairs and of the longer-term risks and

opportunities regarding Iveco Group's business, considering the geographic, social, and environmental context in which it operates.

(5) Refer to the Board of Directors section .

(6) Although Iveco Group is a multi-business undertaking, its activities relate to 2 sub-industry groups, as per MSCI and Standard & Poor's Global Industry Classification Standard.

Board Report Sustainability Statement 13

Each Board member's main skills are summarised in individual charts available on the corporate website under their respective profiles(5); these

skills were self-assessed using a 3-level scale (basic, medium, or full skill). Directors can request targeted induction initiatives to support them in

enhancing their skills as deemed appropriate, particularly in response to evolving scenarios, needs, and priorities. Based on the annual self-

assessment performed under the oversight of the ESG Committee, the Board considers itself well-suited to fulfil its duties given the Company's

current and prospective challenges, and will continue to consider enhanced diversity and independence as a priority. The Directors' skills (and

relevant definitions) are summarised below.

Iveco Group Board of Directors – Skills Matrix

As at 31 December 2024


Director	SKILLS CATEGORIES
Director	Industry	Strategy & Corporate Development	Innovation	Sustainability	Risk Management	ICT & Cybersecurity	Governance	Financial
Suzanne Heywood	Full	Full	Medium	Medium	Medium	Full	Full	Full
Olof Persson	Full	Full	Full	Full	Full	Full	Full	Full
Lorenzo Simonelli	Medium	Full	Full	Full	Full	Full	Full	Full
Judy Curran	Full	Full	Full	Full	Full	Full	Full	Full
Tufan Erginbilgic	Basic	Full	Medium	Full	Medium	Full	Full	Full
Essimari Kairisto	Basic	Full	Full	Medium	Full	Medium	Full	Full
Linda Knoll	Full	Full	Full	Full	Medium	Basic	Full	Medium
Alessandro Nasi	Full	Full	Medium	Full	Medium	Medium	Full	Full

The three skill levels (basic, medium, full) are described as follows:

Full

▪ Director possesses extensive skills/knowledge/experience

▪ Director has received significant formal training and guidance and is able to provide same to colleagues

Medium

▪ Director has proven skills/knowledge/experience

▪ Director has received formal training

Basic

▪ Director has a foundational level of skills/knowledge/experience

▪ Director has received basic induction.

The following are the skills definitions used to compile the Skills Matrix.

▪ Industry: Experience at executive and/or board level at companies operating in the following 2 sub industries(6) :

▪ Industry: 201060 Machinery; sub-industry: 20106010 Construction Machinery & Heavy Transportation Equipment: Manufacturers of heavy-

duty trucks, rolling machinery, earth-moving and construction equipment, and manufacturers of related parts. Includes non-military

shipbuilding

▪ Industry: 251020 Automobiles; sub-industry: 25102010 Automobile Manufacturers: companies that produce mainly passenger automobiles

and light trucks.

▪ Strategy and corporate development: Experience at executive and/or board level in developing and leading strategy. Experience in

analysing, identifying, and evaluating corporate development opportunities in a financial/insurance institution, including mergers, acquisitions,

partnerships, joint ventures, and product development. Experience in overseeing an organisation's transformation and disclosures resulting

from identified risks and opportunities.

▪ Innovation: Experience at executive and/or board level in developing and leading forward thinking innovation, or change initiatives including

those that produce new solutions or efficiencies in business models, products, or operational excellence.

(7) For the purposes of this section, Governance encompasses all aspects of Business Conduct.

(8) The Charter of the ESG Committee is available on the corporate website.

(9) ESG and sustainability aspects include climate-related and water security issues.

(10) The Charter of the Audit Committee is available on the corporate website.

(11) Internal Control over Sustainability Reporting (ICSR).

Board Report Sustainability Statement 14

▪ Sustainability: Experience in sustainability, especially in key material environmental, social, and governance (ESG) trends (including climate

change, employee health and safety, human rights, and diversity and inclusion aspects), along with material impacts, risks and opportunities for

the organisation that relate to ESG.

▪ Risk management: Experience at executive and/or board level in risk management.

▪ ICT & cybersecurity: Experience of enterprise-wide information technology systems, client-based digital infrastructures, data analytics, privacy,

and cybersecurity strategy and policies.

▪ Governance(7): Understanding of board duties and responsibilities and of leading cooperative, regulatory, and/or governance principles and

practices, including subsidiary governance, gained as the senior executive and/or board member of an organisation with solid cooperative and/

or corporate governance practices.

▪ Financial: Experience in managing the financial activities of a public, private, and/or non-profit organisation or cooperative.

Based on the skills and professional experience of the Company's Directors, the Board believes it collectively possesses the experience and

expertise required for Iveco Group's sectors of operation, products, and geographic presence. This includes the Board's ability to effectively

oversee the Company’s management team, which is in charge of the governance processes, controls, and procedures used to assess, monitor,

manage, and oversee impacts, risks, and opportunities from an operational and technical perspective.

The Board of Directors has collective responsibility for the strategy, management, supervision, and continuity of the Company. Among other

things, it oversees the development of Iveco Group's mission and vision, as well as its culture, strategies, policies, and goals regarding economic,

environmental, social, and governance topics. The Board has three committees, each composed of Non-Executive Directors, to assist in fulfilling

its duties: the Audit Committee, the ESG Committee, and the Human Capital & Compensation Committee. Both directly and through its

Committees, the Board discusses strategic, industrial, and technological scenarios. It oversees the risk management process. It approves annual

budgets and strategic plans and targets, and monitors their progress regarding actual results and forecasts. Lastly, it supervises ongoing

operations with a specific focus on major projects and transactions while continually reviewing the Company's innovation priorities over time.

For more information on the Board of Directors, see the ‘Governance Statement’ in this Report.

Iveco Group has established an organisational structure to optimise the management of sustainability matters within the Organisation. The

ultimate responsibility for sustainability matters lies with the Board and its ESG Committee (with the active support of the Audit Committee in

sustainability reporting and relevant internal controls and risk management systems). From an executive point of view, this responsibility falls

under the Senior Leadership Team (SLT); from an operational one, under the Sustainability Department.

At Board level, according to its Charter, the ESG Committee(8) is responsible, among other things, for assisting the Board in:

▪ overseeing the Company's ESG priorities, commitments, goals, risks, and opportunities, as well as their integration into the overall strategy and

business model (including in terms of the materiality analysis), and with reference to the Company's entire value chain, in the pursuit of

sustainable long-term value creation, taking into account the interests of the Company's diverse stakeholders

▪ overseeing the Company's stakeholder relations and dialogue on ESG and sustainability(9) aspects, with consultation as deemed appropriate by

the Committee

▪ overseeing ESG policies, programmes, and practices to advance the Company's business purpose, strategy, culture, values, and reputation

▪ monitoring the Company's ESG performance, providing guidance on key ESG matters, and reviewing the materiality analysis to prepare for

sustainability reporting.

On the other hand, according to its Charter, the Audit Committee(10) advises and assists the Board with:

▪ overseeing the integrity and quality of the Company's financial and sustainability disclosures, as well as the relevant reporting processes

(including internal controls over financial and sustainability reporting)

▪ supervising the effectiveness of the design and operation of the Company's internal risk management and control system (including ICSR(11)

and risk management systems for sustainability reporting), in line with applicable rules, standards, and best practices

▪ managing and supervising the Company's relations with its independent auditors for financial and sustainability reporting, according to

applicable rules, standards, and best practices.

At senior executive level, the Senior Leadership Team (SLT) is an operational body of Iveco Group responsible for reviewing the operating

performance of the Company's business areas. It is involved in decision-making on certain operational matters, and oversees the quality and

execution of the Company's strategy on impacts, risks, and opportunities. The SLT reports to and advises the Board of Directors on key matters

(including sustainability), with the Board remaining accountable for the decisions of the SLT itself as it has ultimate responsibility for the

Company’s direction, management, supervision, and reporting. The SLT operates under the supervision of the Non-Executive Directors, providing

them, through the CEO and its other members, with all the information they require to fulfil their responsibilities.

(12) For the definition of the Focus Area scope, see 1.1 General Basis for the Preparation of the Sustainability Statement.

Board Report Sustainability Statement 15

As at 31 December 2024, the SLT had 15 members and its composition was as follows:

▪ gender: 10 males (representing 67% of the total) and 5 females (representing 33% of the total)

▪ age group: 4 members were in the 30-50 age group (27%), 11 members were in the over-50 age group (73%), and no member was under 30

years of age.

The SLT members are provided with regular updates on Iveco Group's sustainability performance, with a continuous focus on shared priorities

and targets. The SLT is specifically responsible for:

▪ defining the sustainability strategy

▪ aligning the sustainability strategy with business needs, adopting a medium- to long-term perspective

▪ updating the Company's sustainability targets annually, and reviewing them mid-year.

The Chief Sustainability Officer, a member of the SLT, is in charge of providing performance updates to the SLT and generally attends all ESG

Committee meetings, as well as Audit Committee meetings whenever sustainability topics are on the agenda.

At operational level, the Sustainability Department oversees two main areas: the sustainability strategy and sustainability initiatives. Among other

things, it monitors external trends and incorporates them into Iveco Group activities in line with stakeholder requirements, it proposes projects

involving the Company and/or the community, and promotes the adoption of good practices to encourage their integration into Company

processes. From an operational perspective, it is tasked with: conducting the materiality analysis and stakeholder engagement processes;

managing all sustainability planning and reporting aspects; completing questionnaires required by sustainability rating agencies; and managing

initiatives that support the development of local communities. Additionally, the Sustainability Department is responsible for:

▪ promoting a culture of sustainability throughout the Company, engaging all levels of the organisation

▪ promoting the integration of sustainability into day-to-day activities, implementing the relevant strategies

▪ facilitating continuous improvement by supporting and motivating other corporate functions

▪ strengthening relationships with stakeholders

▪ interacting regularly with the executive teams and Board of Directors

▪ providing updates on sustainability performance

▪ establishing internal controls to ensure accuracy and reliability in the sustainability reporting process.

The Sustainability Department Manager provides technical support to both the ESG Committee and the Audit Committee.

Sustainability Representatives are appointed to represent the Group's operating areas and provide a direct link with the Sustainability Department,

ensuring both technical and organisational support in dealing with sustainability matters. They are responsible for:

▪ ensuring the support and alignment required across the Group

▪ bringing expertise to specific issues relating to the Group's reporting process

▪ formulating proposals for continuous improvement.

A list of the impacts, risks, and opportunities associated with the material sustainability matters identified by the Iveco Group was submitted by the

Sustainability Manager to the ESG Committee, approved by the latter, and shared with the Audit Committee. As per the normal yearly schedule,

the ESG Committee is updated quarterly on material sustainability matters, which enables it to oversee the Organisation's sustainability activities

and progress against set targets, using appropriate metrics and focusing on key processes and actions.

1.3 SUSTAINABILITY-DRIVEN INCENTIVE SCHEMES (GOV-3)

Iveco Group offers both long- and short-term incentive plans linked, among other things, to some of its strategic sustainability targets.

The Long-Term Incentive Plan (LTIP) consists of two components: Company performance awards (i.e., Performance Share Units or PSUs) and

retention-based awards (i.e., Restricted Share Units or RSUs), both in recognition of favourable individual performances and alignment with

Company values. The Company performance component is linked to achieving challenging predefined performance and market objectives over a

3-year period. For Executive Directors, only PSUs are awarded.

In 2024, in keeping with the previous year, the compensation plan for Executive Directors (the Chairperson and CEO) included long-term

incentives linked to the Company's strategic sustainability target of reducing its CO2 emissions (Scope 1 & 2) compared to 2019. As a result, the

2023-2025 LTI PSU awards are contingent, among other things, on a 22% reduction in CO 2 emissions (Scope 1 & 2 - Focus Area(12)) by 2025,

while the 2024-2026 LTI PSU awards are contingent on a 28% reduction by 2026. With a 20% weighting towards overall individual awards, these

incentives provide a significant inducement to align with the Strategic Business Plan's carbon footprint commitment.

As part of the Company's effort to drive sustainable, long-term value creation, the LTIP also applies to Senior Leadership Team (SLT) members

and to certain individuals below senior management, namely directors, vice presidents, and other key positions.

(13) Committee of Sponsoring Organizations of the Treadway Commission.

(14) Corporate Sustainability Assessment by S&P Global.

Board Report Sustainability Statement 16

On the other hand, Iveco Group's short-term incentives in 2024 were linked to the strategic sustainability target focused on increasing the number

of office positions held by women. These incentives applied to the Senior Leadership Team (SLT) members, including the CEO, and all other

professional-and-above employees. For more information on remuneration components, see the ‘Remuneration Report’ in this Report.

1.4 STATEMENT ON DUE DILIGENCE (GOV-4)

Iveco Group places particular emphasis on conducting due diligence within its value chain, recognising the crucial role it plays in Group

operations. Due diligence is an ongoing practice that responds to and may trigger changes in the company’s strategy, business model, activities,

business relationships, operating, sourcing and selling contexts. The actions described in the sections referenced in the table below are the

starting point for Iveco Group's structured due diligence approach to sustainability.


Core Elements of Due Diligence	Sections in the Sustainability Statement
Embedding due diligence in governance, strategy, and business model	1.6 Strategy, Business Model, and Value Chain 1.8 Integrating Material Impacts, Risks, and Opportunities into the Strategy and Business Model
Engaging with affected stakeholders in all key steps of the due diligence	1.7 Stakeholders Viewpoint and Interests
Identifying and assessing adverse impacts	1.9 Identifying and Assessing Material Impacts, Risks, and Opportunities
Taking actions to address those adverse impacts	3.4 Climate Actions and Targets 4.3 Air Pollution Actions and Resources 5.3 Water Actions and Resources 6.3 Resource Inflow 6.4 Resource Outflow 11.3 Business Conduct and Corporate Culture
Tracking the effectiveness of these efforts and communicating	3.5 Climate Metrics 4.5 Air Pollution 5.5 Water Consumption 6.3 Resource Inflow 6.4 Resource Outflow

1.5 RISK MANAGEMENT AND INTERNAL CONTROLS OVER SUSTAINABILITY REPORTING (GOV-5)

In 2024, Iveco Group launched an initiative to enhance its internal control system for sustainability reporting, focusing on both design and

operating effectiveness. The internal control system consists of policies, procedures, organisational structures, and a corporate culture that

promotes sustainable management, in line with strategic guidelines and corporate objectives, enabling the identification, evaluation, and

mitigation of risks that could impact the achievement of such objectives. The internal control system was implemented based on the supplemental

guidance entitled ‘Achieving Effective Internal Control over Sustainability Reporting (ICSR)’ issued by COSO(13) on 31 March 2023, recognised as

the benchmark for effective ESG reporting control systems.

The aforementioned 2023 COSO guidance leverages on the application of the 5 components (Control Environment, Risk Assessment, Control

Activities, Information and Communication, Monitoring Activities) and the 17 principles defined by the COSO Internal Control - Integrated

Framework (also known as ICIF-2013), designed to support the development of an effective and integrated control system for sustainability

reporting. Building on this framework, Iveco Group leveraged synergies between its sustainability and financial reporting processes and controls in

order to design and implement its own integrated and comprehensive internal control system.

The initiative, currently in progress, initially focused on a subset of KPIs identified as most relevant based on the results of the Scoping phase

described below, with plans to expand the number of KPIs as implementation progresses. The Group's ICSR process includes the following key

phases:

▪ Governance: involving the definition of the ICSR governance model in terms of roles and responsibilities, reporting structures, and mechanisms

for coordinating between the Sustainability function and other functions involved in the sustainability reporting process

▪ Scoping: starting from the list of European Sustainability Reporting Standards (ESRS) data points to be disclosed by Iveco Group, identified as

a result of the double materiality assessment, the Organisation developed an ad hoc methodology to implement an internal control approach

tailored to the different levels of relevance of the data identified for disclosure. The levels of relevance were determined by assessing each KPI

(each representing a grouping of ESRS data points within Iveco Group's scope) against qualitative and quantitative criteria (i.e., complexity,

ownership, Group strategy, CSA(14)/rating agency requirements, management incentives, reputational impact, management evaluations), and

by evaluating the contribution of countries, legal entities or plants to each KPI. Using this methodology, all KPIs in scope were grouped into

three clusters of relevance, each requiring a distinct internal control model approach (refer to the Process and Control Documentation phase

below). During this first year of implementation, the scoping perimeter was limited to quantitative data points, and will be extended to all data

points in scope in the next phases of implementation

(15) The KPI development process encompasses data generation, aggregation, KPI calculation, and validation.

(16) The KPI development process encompasses data generation, aggregation, KPI calculation, and validation.

(17) The KPI development process encompasses data generation, aggregation, KPI calculation, and validation.

(18) In March 2024, Iveco Group announced an agreement with the listed private equity investor Mutares SE & Co. KGaA to transfer the ownership of Magirus GmbH and its affiliates

performing Fire Fighting business under the Brand MAGIRUS. The transfer was completed on 3 January 2025. The 2024 data was not affected by this operation.

Board Report Sustainability Statement 17

▪ Risk Analysis: involving the identification of risks in sustainability reporting by analysing relevant data and information and by identifying factors

that may hinder the achievement of the ‘Qualitative characteristics of information’ outlined in ESRS 1 - Appendix B. The latter requires the

information presented by Iveco Group in its Sustainability Statement to be relevant, faithfully represented, comparable, verifiable, and

understandable. The sustainability reporting risk assessment allows to identify and assess sustainability risks at the assertion level, as well as

the entity-level controls (ELCs) needed to effectively mitigate them. To strengthen the internal control system, Iveco Group selected and

focused on a subset of KPIs, all of which are classified as highly relevant to the Group, in order to map the related processes supporting KPI

data development and identify the associated risks. The main risks are described below:

▪ inaccurate or incomplete data: the risk that the data reported in the Sustainability Statement is inaccurate or incomplete is mitigated

through process controls over data calculation and collection. These controls are embedded in the end-to-end KPI development

process(15), as well as in data consolidation and reporting

▪ data not compliant with applicable regulations: the risk that the data reported in the Sustainability Statement is not in line with

applicable regulations is mitigated through central controls implemented by the Sustainability function. These controls ensure that both

the ESG reporting perimeter and the double materiality assessment are duly validated, that the methodological rules for KPI

calculations are reviewed annually, and that the Sustainability Statement's contents are thoroughly checked to ensure alignment with

ESRS requirements.

▪ Process and Control Documentation: this phase involves identifying key processes based on the Scoping and Risk Analysis performed, as

well as the relevant controls within each process to effectively mitigate the identified risks. These controls are documented in a structured and

detailed manner, ensuring they can be assessed effectively to verify whether their design is appropriate for achieving their intended objectives.

A Control Model was developed to establish suitable controls for different categories of KPIs, based on the cluster they were assigned to in the

Scoping phase:

▪ entity-level controls (ELCs) – these are company-wide internal controls designed to mitigate risks across the entire Organisation and

that, as such, have a pervasive impact on Iveco Group's overall system of internal controls. ELCs, which include the policies,

procedures, and activities that underpin the Group's comprehensive framework for an effective internal control system, are evaluated

according to the COSO ICSR guidance

▪ process-level controls (PLCs) – these controls cover the end-to-end KPI development process(16). They are established for the most

relevant KPIs and apply to individual processes/ functions/ plants/ entities/ etc. Depending on the relevance of the KPI in question,

resulting from the scoping phase, PLCs may focus on the full end-to-end KPI development process(17) or on its ‘closing’ activities (i.e.,

final stage of the development process related to data aggregation and KPI calculation).

▪ Monitoring: this phase involves assessing ELCs, PL Cs, and IT general controls (ITGCs) for both design and operating effectiveness. It

includes testing controls, identifying deficiencies, highlighting improvement areas, and defining the necessary corrective actions. To enhance

integration and synergy, the monitoring approach leverages key elements of the Group's Internal Control over Financial Reporting model

▪ Evaluation & Reporting: this phase involves assessing the monitoring results and analysing deficiencies, the latter classified in line with the

ICFR framework, to ensure consistent and comparable evaluations while enabling the integrated assessment of financial and non-financial

reporting controls.

Iveco Group's ICSR Framework has been presented to the Senior Leadership Team (SLT), Audit Committee, and ESG Committee, which are

also periodically updated on the progress of its implementation.

The Group will continue to expand the scope of its ICSR system to ensure a high level of control over its sustainability reporting process. This will

also include establishing IT general controls (ITGCs) to ensure the proper functioning of the IT systems supporting the PLCs. The ICSR's phased

implementation has already been planned over a timeline of approximately three years from 2024.

1.6 STRATEGY, BUSINESS MODEL, AND VALUE CHAIN (SBM-1)

Iveco Group is the holding company of a leading global capital goods group engaged in the design, production, marketing, sale, servicing, and

financing of trucks, commercial vehicles, buses, and specialty vehicles for defence, firefighting(18), and other uses; combustion engines, alternative

propulsion systems, transmissions, and axles for those vehicles; and engines and alternative propulsion systems for agricultural and construction

equipment and for marine and power generation applications. The Group has ma nufacturing, commercial, and financial services companies in 34

countries and a commercial presence in approximately 158 countries.

As at 31 December 2024, Iveco Group had five operating segments:

▪ Truck designs, manufactures and distributes a full range of light, medium, and heavy vehicles for the transportation and distribution of goods

under the IVECO brand;

▪ Bus designs, manufactures and distributes minibuses, city-buses, intercity buses and coaches under the IVECO BUS and HEULIEZ brands;

Board Report Sustainability Statement 18

▪ Defence designs, manufactures and distributes vehicles for civil defense and civil protection under the IDV brand, and vocational heavy-duty

trucks for heavy haulage and off-road missions under the ASTRA brand;

▪ Powertrain designs, manufactures and distributes, under the FPT Industrial brand, a range of combustion engines, alternative propulsion

systems, transmission systems and axles for on- and off-road applications, as well as for marine and power generation; and

▪ Financial Services offers a range of financial products and services to dealers and customers. Financial Services provides and administers

retail financing to customers for the purchase or lease of new and used vehicles sold by brand dealers and distributors of the Group or directly

by subsidiaries of the Group. In addition, Financial Services provides wholesale financing to brand dealers and distributors of the Group.

Wholesale financing consists primarily of floor plan financing and allows the dealers to purchase and maintain a representative inventory of

products. Financial Services also provides discounting of non-dealer trade receivables from legal entities of the Group. Additionally, Financial

Services grants support to CNH Industrial Group (CNH), by providing financial services for its European brands, dealers and customers under a

vendor and service agreement, receiving a fee for the services rendered.

Attracting, retaining, and further developing qualified employees is critical to the success of Iveco Group's businesses and its ability to create long-

term value. The labour-intensive nature of the Group's operations is reflected in the large number of hourly employees.

Employees by Region

(number)


	2024
Europe	30,968
South America	4,010
North America	77
Rest of World	991
Total	36,046

For financial information on revenues, see section ‘Operating and Financial Review’ in this Report; the segment revenues reported are attributable

to the following ESRS-defined sectors :


Iveco Group Business Units	Main ESRS sector
Truck, Bus, Defence, Powertrain	C.29.10
Financial Services	C.64.99

Iveco Group does not operate in the fossil fuel, chemical production, controversial weapons, or tobacco cultivation industries.

Business Model

It is the Group’s mission to put sustainability at the heart of its strategy, making it an integral part of day-to-day activities to ensure business is

conducted in an economically sound, environmentally friendly, and socially beneficial way. By fully integrating environmental and social

considerations with economic objectives, the Organisation is able to identify potential risks and seize additional development opportunities,

fostering a process of continuous—and above all, sustainable—improvement that creates long-term value. In line with this commitment, the Group

is a participant in the UN Global Compact and, as a Signatory, joins thousands of other companies worldwide committed to taking responsible

business action.

In 2022, every employee was involved in defining the Group's Purpose and the 5 corporate Values that truly reflect the way Iveco Group wants to

do business. The Purpose and Values are applied daily and to all aspects of business, supported by:

▪ a system of principles, rules, and procedures in which roles and responsibilities are clearly defined

▪ a process that anticipates and manages current and future economic, environmental, and social risks and opportunities

▪ a set of strategic business and sustainability priorities that help steer everyone's efforts.

Iveco Group believes that innovation and the design of products and services tailored to customers' needs are essential to its competitive

advantage and integral to all activities and processes involved in value creation. It is what enables the Company to compete effectively with other

market players and be recognised by customers as a true partner. The main objective of Iveco Group's business is to create value for

stakeholders, which are classified according to the pillars identified by the World Economic Forum (WEF):

▪ planet – this pillar represents a commitment to not underestimate the threats facing the Earth. Building a safer and more sustainable world

requires the right balance between humanity and the environment, and pursuing the necessary targets can no longer be delayed

Board Report Sustainability Statement 19

▪ people – this pillar represents a commitment to consider the diverse perspectives of those impacted by the Organisation's business, while

actively encouraging their participation in driving positive change

▪ prosperity – this pillar represents a commitment to ensure greater prosperity for all, through the adoption of new technologies and the transition

towards a more inclusive and increasingly digital society.

The key elements of Iveco Group's value chain can be summarised as follows:

▪ Our People & Operations: representing the skilled individuals who contribute their expertise and dedication to developing products and services

across all Group areas, supported by production processes that are efficient, technologically innovative, and environmentally friendly

▪ Our Products & Services: representing the Group's product and service offering, designed to provide customers with lower operating and

maintenance costs, superior performance, maximum profitability, lower total costs of ownership (TCO), and technological innovation

▪ Our Valued Partners: representing those who make up Iveco Group's ecosystem (mainly the dealerships, service network, and suppliers), who

share a mutual understanding and collaborate with the Organisation to map out and navigate the challenges of the current transition. These

partnerships enable Iveco Group to operate efficiently and deliver the highest value to its ultimate and most valued partners – its customers.

Believing that long-term success is achieved by pairing innovation with resource efficiency, and financial prosperity with ESG performance, Iveco

Group's organisational model was designed to strengthen:

▪ the entrepreneurial agility of its Business Units

▪ the focus on new technologies and digital solutions

▪ customer centricity

▪ clear accountability

▪ synergies between Business Units to achieve global consistency

▪ the Group's efficiency and effectiveness

▪ Corporate Governance.

Iveco Group's value chain is made up of:

▪ suppliers and sub-suppliers – which provide the raw materials and components required to manufacture the Group's products

▪ employees – who work across Group headquarters, plants, dealerships, and sales and distribution channels

▪ distribution networks – which sell the Group's products while providing relevant services

(19) Carbon footprint; workplace and product safety; life cycle thinking; inclusion and engagement.

Board Report Sustainability Statement 20

▪ customers – who purchase the Group's products

▪ end users – who operate the Group's products.

The Sustainability Plan

The Sustainability Plan reflects the commitment of Iveco Group's people to contributing to the Organisation's growth in harmony with society and

the planet; its measurable and substantiated targets serve as clear and unequivocal pledges by the Group to its stakeholders.

The targets included in the Sustainability Plan are developed and set by the relevant Group functions in collaboration with other departments

based on their areas of expertise, and are further shaped by the insights gathered from affected stakeholders through continuous engagement,

dialogue, and feedback, with final approval from senior management. This ongoing exchange helps identify key focus areas and ensures target

alignment with Group priorities. The responsibility for managing and achieving these targets lies with specific designated functions. Progress on

targets is regularly disclosed through public reporting. Some of the targets indicated in the Plan are also included as individual goals in the

Performance Development Process (PDP) for several managers, including plant managers, responsible for the projects that contribute to their

achievement.

The Plan also includes strategic sustainability targets, which are an integral part of Iveco Group's Strategic Business Plan. All targets within the

Sustainability Plan are:

▪ consistent with the 4 priorities(19) that underpin Iveco Group's sustainability strategy

▪ specific, measurable, achievable, relevant, and time-bound (SMART)

▪ contributing to the achievement of some of the UN Sustainable Development Goals (SDGs)

▪ established by the Group’s corporate functions with the assistance of the Sustainability Department

▪ approved by the Senior Leadership Team (SLT).

The Plan is updated annually and reviewed mid-year by the SLT and by the ESG Committee of the Board of Directors.


ESRS	Targets	2024 Results		Achievement at 31 December 2024
E1	2040: net zero carbon emissions	■	Progress towards CO2 emissions reduction targets (Scope 1, 2, and 3) in line with plan	Target in line with plan
E1	2030: -50% vs 2019 in absolute CO2 emissions (Scope 1 & 2) at manufacturing plants (Focus Area)	■	-25.2% vs 2019 in absolute CO2 emissions	Target in line with plan
E1	2026: 100% of total electricity consumption derived from renewable sources at manufacturing plants (Focus Area)	■	98.2% of total electricity consumption derived from renewable sources	Target in line with plan
E1	2030: -30% vs 2019 in energy consumption per producti on unit (a) at manufacturing plants (Focus Area)	■	-16.9% vs 2019 in energy consumption per production unit(a)	Target in line with plan
E1	2030: -38% vs 2022 in Scope 3 CO2 emissions from the use of sold products (b) per vehicle/km	■	-6.6% vs 2022 in Scope 3 CO2 emissions from the use of sold products per vehicle/km	Target in line with plan
E1	2026: -7% vs 2022 in kg of CO2 emissions per ton of goods shipped	■	-4.9% vs 2022 in kg of CO2 emissions per ton of goods shipped	Target in line with plan
E1	2030: -30% vs 2022 in absolute CO2 emissions generated by major suppliers of purchased goods, services, and capital goods	■	Activities on schedule	Target in line with plan
E2	2026: -14% vs 2019 in VOC emissions per square metre painted at manufacturing plants (Focus Area)	■	-29.4% vs 2019 in VOC emissions per square metre painted	Target exceeded
E3	2026: 75% of industrial water recycled at manufacturing plants (Focus Area)	■	74.7% of industrial water recycled	Target in line with plan
E3	2026: -15% vs 2019 in water withdrawal per production unit(a) at manufacturing plants (Focus Area)	■	-13.9% vs 2019 in water withdrawal per production unit(a)	Target in line with plan
E3	2026: -10% vs 2019 in water withdrawal per production unit(a) at the Truck plant in Brescia (Italy)	■	-12.5% vs 2019 in water withdrawal per production unit(a) achieved at the Truck plant in Brescia (Italy)	Target exceeded
E3	2026: -5% vs 2019 in water withdrawal per production unit (a) at the Powertrain plant in Foggia (Italy)	■	-17.5% vs 2019 in water withdrawal per production unit(a) achieved at the Powertrain plant in Foggia (Italy)	Target exceeded
E3	2026: -22% vs 2019 in water withdrawal per production unit(a) at the plant in Madrid (Spain)	■	-52.8% vs 2019 in water withdrawal per production unit(a) achieved at the plant in Madrid (Spain)	Target exceeded
E3	2026: -10% vs 2019 in water withdrawal per production unit(a) at the plant in Valladolid (Spain)	■	-10.3% vs 2019 in water withdrawal per production unit(a) achieved at the plant in Valladolid (Spain)	Target exceeded
E5	2026: 100% of new products developed using sustainability/recyclability design criteria	■	New design criteria for product launches being defined with the involvement of the supply chain	Target in line with plan

Board Report Sustainability Statement 21


ESRS	Targets	2024 Results		Achievement at 31 December 2024
E5	2026: 97.1% of waste recovered at manufacturing plants (Focus Area)	■	97.5% of waste recovered	Target exceeded
E5	2026: -7% vs 2019 in waste generated per production unit (a) at manufacturing plants (Focus Area)	■	-14.3% vs 2019 in waste generated per production unit(a)	Target exceeded
E5	2026: -6% vs 2019 in hazardous waste generated per production unit (a) at manufacturing plants (Focus Area)	■	-17.4% vs 2019 in hazardous waste generated per production unit (a)	Target exceeded
S1	2026: -40% vs 2019 in injury frequency rate	■	-50.6% vs 2019 in injury frequency rate	Target exceeded
S1	2026: maintain gender pay equity across the Organisation and have it certified by a third party	■	EDGE certification obtained	Target achieved
S1	2028: 30% of office positions held by female office workers	■	27.8% of office positions held by female workers	Target in line with plan
S1	2024: completion of human rights assessments cycle (2022-2024 period), to monitor 100% of employees working in internal operations	■	2021-2024 human rights assessment cycle completed, covering 100% of employees working in internal operations	Target achieved
S1	2027: completion of human rights assessments cycle (2025-2027 period), to monitor 100% of employees working in internal operations			New target
S2	2026: collaborations with 100% of key partners to improve the working conditions and work-life balance of drivers	■	50% of key partners involved in initiatives to improve the working conditions and work-life balance of drivers	Target in line with plan
S2	2026: 100% of dealership staff involved in safety training on Iveco Group's electric product portfolio	■	92% of dealership staff involved in safety training on the Group's electric product portfolio	Target in line with plan
S2	2024: execution of 84 supplier sustainability audits	■	84 supplier sustainability audits carried out	Target achieved
S2	2025: execution of 80 supplier sustainability audits			New target
S2 G1	2026: 100%(c) of Tier 1 suppliers to be involved in sustainability assessment	■	89% of Tier 1 suppliers involved in sustainability assessment through the Open-es platform	Target in line with plan
S3	2026: +50% vs 2019 in number of students involved in education activities, focusing on the jobs of the future	■	+24% vs 2019 in number of students involved in education activities	Target in line with plan
S4	2026: 100% of new vehicles in Europe equipped with advanced driver assistance systems (ADAS) and additional advanced functions, such as adaptive cruise control (ACC), ACC Stop & Go, corrective steering function (CSF), and lane centring (LC)	■	Ongoing development of Level 2 ADAS for new vehicle models	Target in line with plan
S4	2026: +25% vs 2021 in Net Promoter Score (NPS) for IVECO Trucks	■	+20% vs 2021 in the NPS for IVECO Trucks	Target in line with plan
G1	2026: +100% vs 2021 in number of collaboration projects with suppliers to improve products' sustainability performance	■	+50% vs 2021 in number of collaboration projects with suppliers to improve products' sustainability performance	Target in line with plan
—	2030: 100% recovery of the cores of spare parts sold	■	31.4% of recoverable cores from spare parts sold returned to the Group	Target in line with plan
—	2026: 15% of net sales from spare parts generated by remanufactured components	■	6.8% of net sales from spare parts generated by remanufactured components	Target in line with plan

(a) The production unit corresponds to the hour of production. Total manufacturing hours are used to calculate the normalised production unit indicator.

(b) Target refers to vehicles manufactured in Europe.

1.7 STAKEHOLDER VIEWPOINT AND INTERESTS (SBM-2)

Stakeholders present a wide range of differing interests, so establishing and maintaining stable and lasting relationships with them is crucial for

creating shared value over the long term.

Through an internal assessment performed by the corporate functions that manage stakeholder relations on a daily basis, the Group has

identified and focused on several key stakeholders to better understand their specific needs and priorities; this enables the Organisation to

address issues before they become critical, and to fine-tune its responses according to their interests.

Board Report Sustainability Statement 22


Stakeholder categories	Corporate functions
▪ Employees ▪ Employees' Families ▪ Other Workers ▪ Trade Unions & Employee Representatives	Human Resources, Communications, Business Units, Manufacturing
▪ Customers	Business Units, Financial Services, Communications
▪ Dealer and Service Network	Business Units, Financial Services, Communications
▪ Suppliers & Business Partners	Supply Chain
▪ Financial Community (Shareholders, traditional and ESG Investors)	Finance, Public Affairs & Sustainability, Communications
▪ Public Institutions(a)	Public Affairs & Sustainability
▪ Scientific and Technological Research Centres and Universities	Business Units, Technology & Digital, Human Resources
▪ Local Communities(b)	Public Affairs & Sustainability, Legal, Compliance & Corporate Governance, Manufacturing
▪ Environment	Manufacturing, Public Affairs & Sustainability, Business Units, Technology & Digital
▪ Next Generations	All Corporate functions

(a) Governments, local authorities, public agencies, regulatory bodies, international institutions, trade associations, and non-governmental organisations.

(b) Religious, cultural, and socio-political associations; health systems; schools and universities; non-governmental and non-profit organisations.

The Group promotes ongoing communication and active engagement with its stakeholders worldwide, interacting with them proactively

throughout the year via dedicated functions. This approach is structured around 4 levels of engagement, as described below.


Engagement level	Engagement methods
Inform (one-way communication: Iveco Group to stakeholders)	▪ media ▪ publications, reports, corporate website, press, and social/digital media ▪ official public events/activities and speeches ▪ advocacy
Listen (one-way communication: stakeholders to Iveco Group)	▪ media ▪ interviews and meetings ▪ investor relationships ▪ conference calls
Involve	▪ materiality assessment ▪ dedicated web portals ▪ multi-stakeholder forums ▪ shared projects ▪ workshops ▪ collective bargaining ▪ Compliance Helpline
Collaborate	▪ partnerships ▪ open innovation ▪ joint projects ▪ shared decision-making processes

In 2024, Iveco Group was able to ensure meaningful engagement and interactions with stakeholders through a variety of channels and platforms.

Key initiatives included the involvement of investors during the Euronext Sustainability Week 2024, in which it shared insights and gathered

valuable feedback, the engagement of stakeholders as part of the materiality assessment to better understand pressing issues, and the

engagement of all employees through the Voice programme to foster a culture of transparency.

Additionally, the Group hosted multiple Supplier Days, strengthening its partnerships while aligning key suppliers with sustainability objectives.

Stakeholders have raised several key sustainability concerns, reflecting the diverse priorities of different groups. The financial community has

primarily focused on the Group’s product decarbonisation strategy, seeking clarity on the transition to lower-emission technologies, investment

plans, and long-term sustainability goals. Additionally, they have expressed interest in the sustainability of the supply chain, particularly regarding

ethical sourcing, environmental responsibility, and resilience against disruptions. Another critical area of focus has been the integration of ESG-

related key performance indicators (KPIs) into executive remuneration, ensuring accountability and alignment with sustainability objectives.

Furthermore, ESG rating assessments remain a priority, as investors and analysts closely monitor the Group’s performance in areas such as

carbon footprint reduction, social responsibility, and corporate governance.

(20) The Stakeholder Dialogue Policy on Sustainable Strategy is available on the corporate website.

(21) Iveco Group was established on 1 January, 2022, following the execution of the deed of demerger from CNH Industrial.

(22) In the previous assessment, aspects related to business conduct were considered prerequisites, and therefore not examined individually.

Board Report Sustainability Statement 23

Suppliers, on the other hand, have raised concerns about climate-related risks, with a particular emphasis on the sustainable sourcing of critical

raw materials essential for the decarbonisation of industrial processes. Materials such as steel, which play a fundamental role in manufacturing,

are under increasing scrutiny due to their environmental impact and the need for more sustainable production methods. Meanwhile, customers

have increasingly demanded more energy-efficient and environmentally friendly products, highlighting the growing market expectation for

innovative solutions that reduce carbon emissions and operational costs. For all stakeholders, climate change mitigation and human rights remain

absolute priorities. These overarching issues are central to the Group’s long-term sustainability strategy, as stakeholders continue to demand

transparency, responsibility, and meaningful progress in these critical areas.

Iveco Group has adopted a Stakeholder Dialogue Policy on Sustainable Strategy(20) to guide its interactions with relevant stakeholders on the

sustainability aspects of its strategy. These exchanges are seen as opportunities for mutual growth and improvement, and the reason behind the

Organisation's efforts to build cooperation and trust through receptiveness and active engagement.

These interactions are generally led by Iveco Group management representatives, although, in certain cases, Executive Directors or the Chair of

the ESG Committee may engage directly with qualified stakeholders.

1.8 INTEGRATING MATERIAL IMPACTS, RISKS, AND OPPORTUNITIES INTO THE STRATEGY AND BUSINESS MODEL (SBM-3)

Understanding the context in which Iveco Group operates is the first step in the materiality assessment. This involve a preliminary mapping of the

Group's activities and value chain, so as to identify and define the key stages and business relationships where impacts, risks, and opportunities

related to sustainability may arise. Iveco Group has been conducting materiality analyses since 2013, initially as part of the former Group (21) and

then as an independent entity as of 2022. Material sustainability matters determine Iveco Group's priorities, shaping its sustainability strategy and

targets, as well as the contents included in the Sustainability Statement. By defining and fine-tuning such priorities, the Organisation is able to

ensure better alignment with its core business.

Drawing on the materiality assessment, Iveco Group's sustainability strategy is built on 4 sustainability priorities deemed strategic:

▪ carbon footprint: to reduce CO 2 emissions from manufacturing processes, the product range, and along the entire value chain (supply and

logistics), aiming for net zero carbon emissions by 2040

▪ workplace and product safety : to minimise the risk of workplace injuries through effective preventive and protective measures, and to ensure

Group products meet the highest safety standards

▪ life cycle thinking: to implement efficient solutions to minimise the impact of products and processes through a circular life cycle approach

▪ inclusion and engagement: to build ever-stronger relationships with stakeholders, while proactively and effectively fostering an inclusive work

environment.

To strengthen its efforts towards a sustainable future, Iveco Group has mapped out the path to achieving these 4 strategic priorities by setting

clear objectives, with specific reference to its people, direct operations, products and services, and valued partners. These targets are included in

the Strategic Business Plan, with progress regularly reported to both the ESG Committee and the Senior Leadership Team (SLT). They are also

incorporated into the Group's Sustainability Plan, which encompasses both long- and short-term targets and reflects a commitment to grow in

harmony with people and the environment. Clear responsibilities are assigned for each target to ensure they are consistently monitored and

achieved. Mindful that its strategic sustainability targets can contribute to achieving the UN's Sustainable Development Goals (SDGs), Iveco

Group has also developed a process to identify the SDGs most relevant to its business and that it is best equipped to support.

The sustainability matters identified in the 2024 materiality assessment reflect the industry's priorities in terms of social and environmental

impacts, and are consistent with the Group's strategic approach to addressing risks and opportunities. Similar to the previous year, mitigating

Climate change remains a critical priority for Iveco Group due to the impacts of operations, the supply chain, and, most notably, product use, and

to the regulatory risks associated with vehicle emissions standards. Respect for Working conditions and human rights across the value chain was

confirmed as highly material due to the implications of sourcing key raw materials from critical supply chains. Impacts related to Product quality

and safety, innovation, and Dealer and customer management remain material to the Organisation. Compared to 2023, two impact categories

emerged as material: those related to Pollution, particularly air emissions from production processes, and to Business conduct(22), due to the risks

associated with regulatory non-compliance as well as to the positive effects of fostering a corporate culture centred on principles of ethics and

integrity. At year-end 2024, no sustainability-related material risks or opportunities were identified as posing a significant risk of requiring a

material adjustment to the carrying amounts of assets and liabilities in the following annual reporting period.

(23) IG1: Materiality Assessment Implementation Guidance.

(24) See ESRS 1, Appendix A.

(25) Exploring Natural Capital Opportunities, Risks, and Exposure.

Board Report Sustainability Statement 24

1.9 IDENTIFYING AND ASSESSING MATERIAL IMPACTS, RISKS, AND OPPORTUNITIES (IRO-1)

In 2024, the approach used by Iveco Group in its materiality assessment was in line with the Corporate Sustainability Reporting Directive (CSRD)

framework, as outlined in the European Sustainability Reporting Standards (ESRS) and EFRAG (23) guidelines. It entailed a double materiality

approach, which focuses on two distinct perspectives: impact materiality, which concerns the Group's impacts (whether positive or negative,

actual or potential) over the short, medium, and long term, including those generated across its entire value chain; and financial materiality ,

which concerns the sustainability risks and opportunities that may affect Iveco Group's growth, positioning, and performance over the short,

medium, and long term. During the assessment of risks and opportunities, the Group also focused on those arising from external impacts and

dependencies, which were duly considered during the evaluation process. The process of identifying the Group's material impacts, risks, and

opportunities for the 2024 reporting period is described below.

Step 1: Analysis and understanding of the organisational and business context.

A preliminary mapping was performed of the activities of the Group and its value chain, identifying and defining the main operational areas and

business relationships that could give rise to material impacts, risks, or opportunities related to sustainability matters.

After a comprehensive overview, potentially material matters were identified based on the ESRS list of topics, sub-topics, and sub-sub-topics(24),

alongside an analysis of the Strategic Business Plan, Sustainability Plan targets, industry material topics, and the requirements of key

sustainability reporting standards. This first stage produced a list of possible sustainability matters material to Iveco Group, combining both ESRS

topics and entity-specific aspects to provide a broad view of the Group's potential impacts, risks, and opportunities.

Step 2: Identification of impacts, risks, and opportunities related to sustainability matters.

Identifying impacts, risks, and opportunities entailed two distinct yet parallel and interconnected processes:

▪ identification of impacts: drawing on the aforementioned context analysis and other public sources – such as the ENCORE(25) platform – the

Group identified its actual and potential impacts on people and the environment, both positive and negative, arising directly or indirectly from its

business operations and relationships. These impacts were then aligned to the ESRS list of topics, sub-topics, and sub-sub-topics,

supplemented with entity-specific aspects, and adjusted to the appropriate level of granularity for Iveco Group. A time horizon was also defined

for each impact, as well as the stage within the value chain at which they may occur, with country- and site-specific details where necessary

▪ identification of risks and opportunities: based on the context analyses performed, and after assessing any dependency on environmental and/

or social resources, the Group's Enterprise Risk Management (ERM) function completed a list of risks identified during its risk assessment

process. As part of this ongoing framework, the Group has identified potential opportunities, with the most significant ones relating to climate

matters. ESG-related opportunities will be progressively assessed and quantified, as part of the ongoing integration between the double

materiality and risk analysis processes.

Step 3: Assessment of the significance of impacts, risks, and opportunities related to sustainability matters.

The impacts and risks identified were assessed through the lens of impact materiality (inside-out perspective) and financial materiality (outside-in

perspective), respectively.

▪ The significance of impacts – whether actual or potential, positive or negative – on people and the environment in the short, medium, and long

term was assessed through dedicated workshops involving the relevant corporate functions. The metrics used were in line with ESRS

Standards and included parameters such as Scale, Scope, Irremediable Character (for negative impacts only), and Likelihood (for potential

impacts only).

▪ The significance of risks was assessed based on input from Risk Owners during the risk assessment process, using the ERM system's Severity

and Likelihood parameters. The levels of risk were classified on a scale from 1 (Minor) to 4 (Very Significant or Critical), based on both

qualitative and quantitative criteria.In the context of the process, and specifically in the area of climate matters, a list of opportunities has also

been evaluated.

In addition to internal functions, Step 3 also involved key external stakeholders – suppliers, dealers, local communities, and members of the

scientific community – consulted via ad hoc interviews to review and validate the findings of the Group's impact assessment process. The

sustainability statement may not include every impact, risk and opportunity or additional entity-specific disclosure that each individual stakeholder

(group) may consider important in its own particular assessment, nevertheless the Group is committed to addressing all relevant matters that

come to its attention.

Step 4: Definition and prioritisation of the material impacts, risks, and opportunities related to sustainability matters.

The combination of internal and external stakeholder assessments resulted in an official list of material sustainability matters and respective

impacts, risks, and opportunities, which was validated by the Senior Leadership Team (SLT) and subsequently approved by the ESG Committee

of the Board of Directors. The findings of the double materiality analysis were also used to shape the contents of this Sustainability Statement.

Board Report Sustainability Statement 25

The double materiality assessment is an ongoing process that may be impacted in time by sector-specific standards to be adopted or

developments in stakeholder expectations, regulatory developments, changes in risk management or new business developments.

Iveco Group's Material Sustainability Matters and Significant Impacts, Risks, and Opportunities


SUSTAINABILITY MATTER	IMPACT MATERIALITY					FINANCIAL MATERIALITY
SUSTAINABILITY MATTER	Description of Impact	Nature of Impact	Type of Effect	Time Horizon	Source of Impact	Description of Risk/Opportunity	Time Horizon
Climate change due to own operations	The greenhouse gas emissions generated by Iveco Group's own operations (Scope 1 & 2) contribute to climate change	Negative	Actual	Short-term	Own operations	1. Risk: Higher energy cost due to difficulties in finding the correct mix between renewables and alternative energy sources in regions where the Group operates	1. Medium- term
Climate change due to vehicles	The greenhouse gas emissions generated by the use of sold vehicles contribute to climate change	Negative	Actual	Short-term	Downstream value chain	1. Risk: Failure to comply with emissions regulations leading to penalties and reputational damage. Shift towards electric vehicles (EV) and the decline in internal combustion engines (ICEs) reshaping market dynamics, with uncertainty over adoption due to regulatory misalignment, incentives, and infrastructure gaps 2. Opportunity: Market consolidation driven by electrification, expansion of offerings, and new business models to meet demand. Success of new products/services aligned with evolving customer behaviour and related financial benefits from increasing demand for high-margin EV products and streamlined offerings	1. Short-, medium-, and long- term 2. Medium- and long- term
Climate change due to vehicles	The launch of new electric vehicles, as well as the use of alternative fuels and propulsions (e.g., natural gas, biomethane, hydrogen, and electric and hybrid engines) capable of reducing emissions during vehicle use, contribute to tackling climate change	Positive	Potential	Medium- term	Own operations
Climate change due to supply chain	The greenhouse gas emissions generated by Iveco Group's supply chain contribute to climate change (e.g., inbound and outbound logistics flows)	Negative	Actual	Short-term	Upstream value chain	—
Pollution	The release of air pollutants during vehicle use (i.e., nitrogen oxides (NOX), and particulate matter (PM)) represents a threat to human health and the environment	Negative	Actual	Short-term	Downstream value chain	1. Risk: Failure to comply with relevant regulations related to air pollutants (e.g., NOX )	1. Short- term
Pollution	The release of air pollutants in manufacturing processes (i.e., volatile organic compounds (VOCs), especially from painting, nitrogen oxides (NOX), sulphur oxides (SOX), and inorganic particulate matter (PM)) represents a threat to human health and the environment	Negative	Actual	Short-term	Own operations		1. Short- term
Water	The use of water in Iveco Group's production processes, especially in water-stressed areas, contributes to the depletion of natural resources	Negative	Actual	Short-term	Own operations	—
Water	The use of water in Iveco Group's supply chain, especially in water- stressed areas, contributes to the depletion of natural resources	Negative	Potential	Short-term	Upstream value chain	—

Board Report Sustainability Statement 26


SUSTAINABILITY MATTER	IMPACT MATERIALITY					FINANCIAL MATERIALITY
SUSTAINABILITY MATTER	Description of Impact	Nature of Impact	Type of Effect	Time Horizon	Source of Impact	Description of Risk/Opportunity	Time Horizon
Circular economy	The use of products made of virgin materials (e.g., steel, aluminium) following a linear product design contributes to the depletion of natural resources	Negative	Actual	Short-term	Own operations and upstream value chain	1. Risk: New product life cycle patterns due to increasing ‘green’ requirements, impacting the revenues generated by a product and the amortisation of R&D investments	1. Medium- term
Circular economy	The production of waste in Iveco Group's operations represents a threat to human health and the environment	Negative	Actual	Short-term	Own operations		1. Medium- term
Working conditions and human rights of own workforce	The incorrect application of labour laws and regulations and/or the inadequate management of labour relations undermines Iveco Group's ability to respond to employees' needs, ensure favourable working conditions (i.e., secure employment, working time, adequate wages, social dialogue, freedom of association, collective bargaining), and enhance workforce wellbeing and satisfaction	Negative	Potential	Short-term	Own operations	1. Risk: Serious injuries to employees (including long-term disabilities and fatalities) caused by work-related accidents, leading to potential legal and regulatory consequences and/or reputational damage 2. Risk: Growing need for investment in health and safety to ensure legal compliance and protection of people and assets from climate change events	1. Short- term 2. Medium- and long- term
	Failure to comply with safety standards causes critical incidents, injuries, and work-related ill health involving Iveco Group employees	Negative	Potential	Short-term	Own operations
	The violation of fundamental labour rights (e.g., child labour, forced labour) threatens employee access to basic life necessities or freedoms (e.g., education, livelihood)	Negative	Potential	Short-term	Own operations
Wellbeing, inclusion, and development of own workforce	The offering of awareness and upskilling programmes contributes to employees' professional growth and career development	Positive	Potential	Short-term	Own operations	—
	The offering of appropriate welfare and wellbeing plans contributes to employee work-life balance and satisfaction	Positive	Actual	Short-term	Own operations
	Discrimination and harassment in the workplace, including unfair recruitment and compensation practices, affect employees, especially those who may be particularly vulnerable and/or marginalised (e.g., women, migrants, people with disabilities)	Negative	Potential	Short-term	Own operations
	The development of an inclusive working environment where people are treated equally improves work-life quality, and makes employees feel valued and free to express their professional potential	Positive	Actual	Short-term	Own operations

Board Report Sustainability Statement 27


SUSTAINABILITY MATTER	IMPACT MATERIALITY					FINANCIAL MATERIALITY
SUSTAINABILITY MATTER	Description of Impact	Nature of Impact	Type of Effect	Time Horizon	Source of Impact	Description of Risk/Opportunity	Time Horizon
Workers in the value chain	An ineffective supplier selection and monitoring system jeopardises satisfactory working conditions (i.e., secure employment, working time, adequate wages, social dialogue, freedom of association, collective bargaining, work-life balance), affecting workers in the supply chain	Negative	Potential	Short-term	Upstream value chain	—
	An ineffective supplier selection and monitoring system leads to human rights violations (e.g., child labour, forced labour), affecting workers in the supply chain	Negative	Potential	Short-term	Upstream value chain
	Inadequate engagement with Iveco Group's suppliers leads to failure to comply with safety standards, causing critical incidents and injuries involving workers in the supply chain	Negative	Potential	Short-term	Upstream value chain
	Engagement activities and training programmes involving workers in the supply chain contribute to the development of specific competencies, and enhance people engagement and satisfaction	Positive	Actual	Short-term	Upstream value chain
	Engagement activities and training programmes involving workers in the downstream value chain contribute to the development of specific competencies, and enhance people engagement and satisfaction	Positive	Actual	Short-term	Downstream value chain
Local communities	The promotion of community engagement initiatives supports the development of, and value creation for, local communities	Positive	Actual	Short-term	Own operations	—
Product quality, safety, and accessibility	The ineffective management of design and production processes affects product quality, reducing the safety and/or satisfaction of drivers and passengers	Negative	Potential	Short-term	Own operations	—
Dealer and customer management	Developing and maintaining strong relations with dealers and customers contributes to improving their satisfaction levels	Positive	Actual	Medium- term	Own operations	—
Digitalisation and connectivity	The digitalisation and connectivity of Iveco Group's products contribute to enhancing the customer experience, improving satisfaction and drivers' road safety	Positive	Actual	Medium- term	Own operations	—
Business conduct	The development of a corporate culture based on principles of ethics and integrity contributes to improving employees' sense of purpose and motivation	Positive	Actual	Medium- term	Own operations	1.Risk: Failure to comply with corporate law and other applicable regulations	1. Short- term
Sustainable supply chain	An ongoing dialogue with suppliers and the dissemination of sustainability principles contribute to improving the supply chain's ESG performance, thus reducing negative environmental and social impacts	Positive	Potential	Medium- term	Own operations	—
Sustainable supply chain	The inadequate management of supplier relationships, especially with regard to payment practices, affects suppliers' business performance, welfare, and growth	Negative	Potential	Short-term	Own operations	—

Board Report Sustainability Statement 28

Material Sustainability Matters and Related ESRS by Type of Impact

1.10 ESRS DISCLOSURES COVERED BY THE SUSTAINABILITY STATEMENT (IRO-2)


ESRS 2 - GENERAL DISCLOSURE
Disclosure requirement	Section
BP-1 – General basis for preparation of sustainability statements	1.1
BP-2 – Disclosures in relation to specific circumstances	1.1
GOV-1 – The role of the administrative, management and supervisory bodies	1.2
GOV-2 – Information provided to and sustainability matters addressed by the undertaking's administrative, management and supervisory bodies	1.2
GOV-3 - Integration of sustainability-related performance in incentive schemes	1.3
GOV-4 - Statement on due diligence	1.4
GOV-5 - Risk management and internal controls over sustainability reporting	1.5
SBM-1 – Strategy, business model and value chain	1.6
SBM-2 – Interests and views of stakeholders	1.7
SBM-3 - Material impacts, risks and opportunities and their interaction with strategy and business model	1.8
IRO-1 - Description of the processes to identify and assess material impacts, risks and opportunities	1.9
IRO-2 – Disclosure requirements in ESRS covered by the undertaking's sustainability statement	1.10

Board Report Sustainability Statement 29


ESRS E1 - CLIMATE
Disclosure requirement	Section
ESRS 2 GOV-3 Integration of sustainability-related performance in incentive schemes	1.3
E1-1 – Transition plan for climate change mitigation	3.1
ESRS 2 SBM-3 – Material impacts, risks and opportunities and their interaction with strategy and business model	1.8
ESRS 2 IRO-1 – Description of the processes to identify and assess material climate-related impacts, risks and opportunities	1.9; 3.2
E1-2 – Policies related to climate change mitigation and adaptation	3.3
E1-3 – Actions and resources in relation to climate change policies	3.4
E1-4 – Targets related to climate change mitigation and adaptation	3.4
E1-5 – Energy consumption and mix	3.5.1
E1-6 – Gross Scopes 1, 2, 3 and Total GHG emissions	3.5.2
E1-7 – GHG removals and GHG mitigation projects financed through carbon credits	3.5.3
E1-8 – Internal carbon pricing	3.5.4
E1-9 – Anticipated financial effects from material physical and transition risks and potential climate-related opportunities	Phased-in option applied


ESRS E2 - POLLUTION
Disclosure requirement	Section
ESRS 2 IRO-1 – Description of the processes to identify and assess material pollution-related impacts, risks and opportunities	1.9; 4.1
E2-1 – Policies related to to pollution	4.2
E2-2 – Actions and resources related to pollution	4.3
E2-3 – Targets related to pollution	4.4
E2-4 – Pollution of air, water and soil	4.5
E2-5 – Substances of concern and substances of very high concern	n/a
E2-6 – Anticipated financial effects from pollution-related impacts, risks and opportunities	Phased-in option applied


ESRS E3 - WATER AND MARINE RESOURCES
Disclosure requirement	Section
ESRS 2 IRO-1 – Description of the processes to identify and assess material water and marine resources-related impacts, risks and opportunities	1.9; 5.1
E3-1 – Policies related to water and marine resources	5.2
E3-2 – Actions and resources related to water and marine resources	5.3
E3-3 – Targets related to water and marine resources	5.4
E3-4 – Water consumption	5.5
E3-5 – Anticipated financial effects from water and marine resources-related impacts, risks and opportunities	Phased-in option applied


ESRS E5 - RESOURCE USE AND CIRCULAR ECONOMY
Disclosure requirement	Section
ESRS 2 IRO-1 – Description of the processes to identify and assess material resource use and circular economy- related impacts, risks and opportunities	1.9; 6.1
E5-1 – Policies related to resource use and circular economy	6.2
E5-2 – Actions and resources related to resource use and circular economy	6.3; 6.4
E5-3 – Targets related to resource use and circular economy	6.3; 6.4
E5-4 – Resource inflows	6.3
E5-5 – Resource outflows	6.4
E5-6 – Anticipated financial effects from resource use and circular economy-related impacts, risks and opportunities	Phased-in option applied

Board Report Sustainability Statement 30


ESRS S1 - OWN WORKFORCE
Disclosure requirement	Section
ESRS 2 SBM-2 – Interests and views of stakeholders	1.7; 7.1; 7.4; 7.5; 7.6
ESRS 2 SBM-3 – Material impacts, risks and opportunities and their interaction with strategy and business model	1.8; 7.1
S1-1 – Policies related to own workforce	7.2
S1-2 – Processes for engaging with own workers and workers' representatives about impacts	7.4; 7.5; 7.6; 7.13.2; 7.13.3
S1-3 – Processes to remediate negative impacts and channels for own workers to raise concerns	7.3
S1-4 – Taking action on material impacts on own workforce, and approaches to managing material risks and pursuing material opportunities related to own workforce, and effectiveness of those actions	7.8; 7.9; 7.10; 7.10.3; 7.11; 7.12
S1-5 – Targets related to managing material negative impacts, advancing positive impacts, and managing material risks and opportunities	7.8; 7.9.1; 7.10; 7.12.2
S1-6 – Characteristics of the undertaking's employees	7.7
S1-7 – Characteristics of non-employee workers in the undertaking's own workforce	7.7
S1-8 – Collective bargaining coverage and social dialogue	7.13; 7.13.4
S1-9 – Diversity metrics	7.8
S1-10 – Adequate wages	7.9.2
S1-11 – Social protection	7.9.3
S1-12 – Persons with disabilities	7.8
S1-13 – Training and skills development metrics	7.11.1; 7.11.3
S1-14 – Health and safety metrics	7.10.2; 7.10.4; 7.10.7
S1-15 – Work-life balance metrics	Phased-in option applied
S1-16 – Compensation metrics (pay gap and total compensation)	7.9.1
S1-17 – Incidents, complaints and severe human rights impacts	7.14


ESRS S2 - WORKERS IN THE VALUE CHAIN
Disclosure requirement	Section
ESRS 2 SBM-2 Interests and views of stakeholders	1.7; 8.1
ESRS 2 SBM-3 Material impacts, risks and opportunities and their interaction with strategy and business model	1.8; 8.1
S2-1 – Policies related to value chain workers	8.2
S2-2 – Processes for engaging with value chain workers about impacts	8.3
S2-3 – Processes to remediate negative impacts and channels for value chain workers to raise concerns	8.4
S2-4 – Taking action on material impacts on value chain workers, and approaches to managing material risks and pursuing material opportunities related to value chain workers, and effectiveness of those actions	8.5
S2-5 – Targets related to managing material negative impacts, advancing positive impacts, and managing material risks and opportunities	8.6


ESRS S3 - AFFECTED COMMUNITIES
Disclosure requirement	Section
ESRS 2 SBM-2 – Interests and views of stakeholders	1.7; 9.1
ESRS 2 SBM-3 - Material impacts, risks and opportunities and their interaction with strategy and business model	1.8; 9.1
S3-1 – Policies related to affected communities	9.2
S3-2 – Processes for engaging with affected communities about impacts	9.2
S3-3 – Processes to remediate negative impacts and channels for affected communities to raise concerns	9.3
S3-4 – Taking action on material impacts on affected communities, and approaches to managing material risks and pursuing material opportunities related to affected communities, and effectiveness of those actions	9.4
S3-5 – Targets related to managing material negative impacts, advancing positive impacts, and managing material risks and opportunities	9.5

Board Report Sustainability Statement 31


ESRS S4 - CONSUMERS AND END-USERS
Disclosure requirement	Section
ESRS 2 SBM-2 – Interests and views of stakeholders	1.7; 10.1
ESRS 2 SBM-3 – Material impacts, risks and opportunities and their interaction with strategy and business model	1.8; 10.1
S4-1 – Policies related to consumers and end-users	10.2
S4-2 – Processes for engaging with consumers and end-users about impacts	10.3
S4-3 – Processes to remediate negative impacts and channels for consumers and end-users to raise concerns	10.4
S4-4 – Taking action on material impacts on consumers and end-users, and approaches to managing material risks and pursuing material opportunities related to consumers and end- users, and effectiveness of those actions	10.4
S4-5 – Targets related to managing material negative impacts, advancing positive impacts, and managing material risks and opportunities	10.5


ESRS G1 - BUSINESS CONDUCT
Disclosure requirement	Section
ESRS 2 GOV-1 – The role of the administrative, supervisory and management bodies	1.2
ESRS 2 IRO-1 – Description of the processes to identify and assess material impacts, risks and opportunities	1.9; 11.1
G1-1– Business conduct policies and corporate culture	11.2; 11.3
G1-2 – Management of relationships with suppliers	11.7
G1-3 – Prevention and detection of corruption and bribery	11.4
G1-4 – Confirmed incidents of corruption or bribery	11.5
G1-5 – Political influence and lobbying activities	11.6
G1-6 – Payment practices	11.7

List of Data Points in Cross-Cutting and Topical Standards that Derive from other EU Legislation


Disclosure requirement and related data point	SFDR(1) reference	Pillar 3(2) reference	Benchmark Regulation (3) reference	EU Climate Law(4) reference
Disclosure requirement and related data point	Sustainability Statement section
ESRS 2 GOV-1 Board's gender diversity paragraph 21 (d)	1.2		1.2
ESRS 2 GOV-1 Percentage of board members who are independent paragraph 21 (e)			1.2
ESRS 2 GOV-4 Statement on due diligence paragraph 30	1.4
ESRS 2 SBM-1 Involvement in activities related to fossil fuel activities paragraph 40 (d) i	n/a	n/a	n/a
ESRS 2 SBM-1 Involvement in activities related to chemical production paragraph 40 (d) ii	n/a		n/a
ESRS 2 SBM-1 Involvement in activities related to controversial weapons paragraph 40 (d) iii	n/a		n/a
ESRS 2 SBM-1 Involvement in activities related to cultivation and production of tobacco paragraph 40 (d) iv			n/a
ESRS E1-1 Transition plan to reach climate neutrality by 2050 paragraph 14				3.1
ESRS E1-1 Undertakings excluded from Paris-aligned Benchmarks paragraph 16 (g)		n/a	n/a
ESRS E1-4 GHG emission reduction targets paragraph 34	3.4	3.4	3.4
ESRS E1-5 Energy consumption from fossil sources disaggregated by sources (only high climate impact sectors) paragraph 38	3.5.1
ESRS E1-5 Energy consumption and mix paragraph 37	3.5.1

Board Report Sustainability Statement 32


Disclosure requirement and related data point	SFDR(1) reference	Pillar 3(2) reference	Benchmark Regulation (3) reference	EU Climate Law(4) reference
Disclosure requirement and related data point	Sustainability Statement section
ESRS E1-5 Energy intensity associated with activities in high climate impact sectors paragraphs 40 to 43	3.5.1
ESRS E1-6 Gross Scope 1, 2, 3 and Total GHG emissions paragraph 44	3.5.2	3.5.2	3.5.2
ESRS E1-6 Gross GHG emissions intensity paragraphs 53 to 55	3.5.2	3.5.2	3.5.2
ESRS E1-7 GHG removals and carbon credits paragraph 56				3.5.3
ESRS E1-9 Exposure of the benchmark portfolio to climate related physical risks paragraph 66			n/a
ESRS E1-9 Disaggregation of monetary amounts by acute and chronic physical risk paragraph 66 (a)		n/a
ESRS E1-9 Location of significant assets at material physical risk paragraph 66 (c).		n/a
ESRS E1-9 Breakdown of the carrying value of its real estate assets by energy-efficiency classes paragraph 67 (c)		n/a
ESRS E1-9 Degree of exposure of the portfolio to climate-related opportunities paragraph 69			n/a
ESRS E2-4 Amount of each pollutant listed in Annex II of the E-PRTR Regulation (European Pollutant Release and Transfer Register) emitted to air, water and soil, paragraph 28	4.5.1
ESRS E3-1 Water and marine resources paragraph 9	5.2.1
ESRS E3-1 Dedicated policy paragraph 13	5.2.1
ESRS E3-1 Sustainable oceans and seas paragraph 14	n/a
ESRS E3-4 Total water recycled and reused paragraph 28 (c)	5.5
ESRS E3-4 Total water consumption in m 3 per net revenue on own operations paragraph 29	5.5
ESRS 2- SBM 3 - E4 paragraph 16 (a) i	n/a
ESRS 2- SBM 3 - E4 paragraph 16 (b)	n/a
ESRS 2- SBM 3 - E4 paragraph 16 (c)	n/a
ESRS E4-2 Sustainable land / agriculture practices or policies paragraph 24 (b)	n/a
ESRS E4-2 Sustainable oceans / seas practices or policies paragraph 24 (c)	n/a
ESRS E4-2 Policies to address deforestation paragraph 24 (d)	n/a
ESRS E5-5 Non-recycled waste paragraph 37 (d)	6.4.1
ESRS E5-5 Hazardous waste and radioactive waste paragraph 39	6.4.1
ESRS 2- SBM3 - S1 Risk of incidents of forced labour paragraph 14 (f)	7.1
ESRS 2- SBM3 - S1 Risk of incidents of child labour paragraph 14 (g)	7.1

Board Report Sustainability Statement 33


Disclosure requirement and related data point	SFDR(1) reference	Pillar 3(2) reference	Benchmark Regulation (3) reference	EU Climate Law(4) reference
Disclosure requirement and related data point	Sustainability Statement section
ESRS S1-1 Human rights policy commitments paragraph 20	7.2.1
ESRS S1-1 Due diligence policies on issues addressed by the fundamental International Labor Organisation Conventions 1 to 8, paragraph 21			7.2.1
ESRS S1-1 Processes and measures for preventing trafficking in human beings paragraph 22	7.2.1
ESRS S1-1 Workplace accident prevention policy or management system paragraph 23	7.2.2
ESRS S1-3 Grievance/complaints handling mechanisms paragraph 32 (c)	7.3
ESRS S1-14 Number of fatalities and number and rate of work-related accidents paragraph 88 (b) and (c)	7.10.4		7.10.4
ESRS S1-14 Number of days lost to injuries, accidents, fatalities or illness paragraph 88 (e)	7.10.4
ESRS S1-16 Unadjusted gender pay gap paragraph 97 (a)	7.9.1		7.9.1
ESRS S1-16 Excessive CEO pay ratio paragraph 97 (b)	7.9.1
ESRS S1-17 Incidents of discrimination paragraph 103 (a)	7.14.2
ESRS S1-17 Non-respect of UNGPs on Business and Human Rights and OECD paragraph 104 (a)	7.14.1		7.14.1
ESRS 2- SBM3 – S2 Significant risk of child labour or forced labour in the value chain paragraph 11 (b)	8.1
ESRS S2-1 Human rights policy commitments paragraph 17	8.2
ESRS S2-1 Policies related to value chain workers paragraph 18	8.2
ESRS S2-1 Non-respect of UNGPs on Business and Human Rights principles and OECD guidelines paragraph 19	8.2		8.2
ESRS S2-1 Due diligence policies on issues addressed by the fundamental International Labor Organisation Conventions 1 to 8, paragraph 19			8.2
ESRS S2-4 Human rights issues and incidents connected to its upstream and downstream value chain paragraph 36	8.5
ESRS S3-1 Human rights policy commitments paragraph 16	9.2
ESRS S3-1 Non-respect of UNGPs on Business and Human Rights, ILO principles or/and OECD guidelines paragraph 17	9.2		9.2
ESRS S3-4 Human rights issues and incidents paragraph 36	9.4
ESRS S4-1 Policies related to consumers and end-users paragraph 16	10.2
ESRS S4-1 Non-respect of UNGPs on Business and Human Rights and OECD guidelines paragraph 17	n/a		n/a
ESRS S4-4 Human rights issues and incidents paragraph 35	n/a
ESRS G1-1 United Nations Convention against Corruption paragraph 10 (b)	11.2

Board Report Sustainability Statement 34


Disclosure requirement and related data point	SFDR(1) reference	Pillar 3(2) reference	Benchmark Regulation (3) reference	EU Climate Law(4) reference
Disclosure requirement and related data point	Sustainability Statement section
ESRS G1-1 Protection of whistle-blowers paragraph 10 (d)	11.2.4
ESRS G1-4 Fines for violation of anti-corruption and anti-bribery laws paragraph 24 (a)	11.5		11.5
ESRS G1-4 Standards of anti-corruption and anti-bribery paragraph 24 (b)	11.5

(1) Regulation (EU) 2019/2088 of the European Parliament and of the Council of 27 November 2019 on sustainability-related disclosures in the financial services sector (Sustainable

Finance Disclosures Regulation) (OJ L 317, 9.12.2019, p. 1).

(2) Regulation (EU) No 575/2013 of the European Parliament and of the Council of 26 June 2013 on prudential requirements for credit institutions and investment firms and amending

Regulation (EU) No 648/2012 (Capital Requirements Regulation or CRR) (OJ L 176, 27.6.2013, p. 1).

(3) Regulation (EU) 2016/1011 of the European Parliament and of the Council of 8 June 2016 on indices used as benchmarks in financial instruments and financial contracts or to measure

the performance of investment funds and amending Directives 2008/48/EC and 2014/17/EU and Regulation (EU) No 596/2014 (OJ L 171, 29.6.2016, p. 1).

(4) Regulation (EU) 2021/1119 of the European Parliament and of the Council of 30 June 2021 establishing the framework for achieving climate neutrality and amending Regulations (EC)

No 401/2009 and (EU) 2018/1999 (‘European Climate Law’) (OJ L 243, 9.7.2021, p. 1).

(5) Commission Delegated Regulation (EU) 2020/1816 of 17 July 2020 supplementing Regulation (EU) 2016/1011 of the European Parliament and of the Council as regards the explanation

in the benchmark statement of how environmental, social, and governance factors are reflected in each benchmark provided and published (OJ L 406, 3.12.2020, p. 1).

(6) Commission Implementing Regulation (EU) 2022/2453 of 30 November 2022 amending the implementing technical standards laid down in Implementing Regulation (EU) 2021/637 as

regards the disclosure of environmental, social, and governance risks (OJ L 324,19.12.2022, p.1.).

(7) Commission Delegated Regulation (EU) 2020/1818 of 17 July 2020 supplementing Regulation (EU) 2016/1011 of the European Parliament and of the Council as regards minimum

standards for EU Climate Transition Benchmarks and EU Paris-aligned Benchmarks (OJ L 406, 3.12.2020, p. 17).

(26) Delegated Regulation 2021/2139.

(27) Delegated Regulation 2023/2486.

(28) Delegated Regulation 2022/1214, introducing economic activities specific to the energy sector, including nuclear and gas energy.

Board Report Sustainability Statement 35

2. EU TAXONOMY ON SUSTAINABLE ACTIVITIES

In June 2020, the European Commission issued Regulation (EU) 2020/852, known as the EU Taxonomy Regulation, establishing a unified EU

classification system for environmentally sustainable economic activities. This classification system (the EU Taxonomy) helps companies identify,

and direct investments towards, economic activities considered to have the potential to be environmentally sustainable, thereby supporting the

European Green Deal objectives and the EU's transition to net zero carbon emissions by 2050.

The EU Taxonomy Regulation stipulates that an economic activity can be classified as sustainable only if it substantially contributes to one or

more of the following 6 environmental objectives:

▪ climate change mitigation (CCM)

▪ climate change adaptation (CCA)

▪ sustainable use and protection of water and marine resources (WTR)

▪ transition to a circular economy (CE)

▪ pollution prevention and control (PPC)

▪ protection and restoration of biodiversity and ecosystems (BIO).

In 2021, the European Commission implemented the Climate Delegated Act(26), which regulates 2 of the environmental objectives – CCM and

CCA – and establishes Technical Screening Criteria (TSC) to identify the economic activities that can significantly contribute to achieving these 2

environmental objectives while doing no significant harm (DNSH) to any of the other objectives.

In 2023, the European Commission introduced:

▪ the Delegated Act 2023/2485 (June 2023), which amended the aforementioned Climate Delegated Act by introducing additional activities and

TSC for determining the conditions under which certain economic activities qualify as substantially contributing to the 2 climate objectives

▪ the Environmental Delegated Act(27) (November 2023), which, in Annexes I, II, III and IV, defines the economic activities associated with the

other 4 environmental objectives – WTR, CE, PPC, and BIO – and the corresponding TSC. In addition, Annex V amends Delegated Regulation

(EU) 2021/2178 (also known as the Disclosure Delegated Act), by including changes to the templates to be used for KPI reporting.

As stated in the EU Taxonomy Regulation, an economic activity(28) is considered taxonomy-eligible if listed in one or more Delegated Regulations

(Climate Delegated Act, Complementary Climate Delegated Act, Environmental Delegated Act, and Delegated Act 2023/2485) of the Regulation

itself, therefore contributing to at least one of the 6 environmental objectives.

Moreover, a taxonomy-eligible activity can be considered taxonomy-aligned if:

▪ it complies with a set of TSC that define the conditions under which the activity:

▪ substantially contributes to one or more of the 6 environmental objectives of the Taxonomy Regulation

▪ does not cause significant harm to any of the environmental objectives (Do No Significant Harm – DNSH)

▪ it complies with TSC established by the Commission in accordance with articles 10(3), 11(3), 12(2), 13(2), 14(2) or 15(2)

▪ it complies with the Regulation's Minimum Safeguards (MS), which ensure that the activity is socially sustainable by respecting human rights

and complying with international standards.

Article 8 of the Taxonomy Regulation requires non-financial undertakings to disclose information on the proportion of (i) turnover derived from

products and services and of (ii) capital expenditure (CapEx) and operating expenditure (OpEx) related to assets and processes that are

associated with economic activities that qualify as environmentally sustainable under Articles 3 and 9. Turnover, CapEx, and OpEx are all key

performance indicators, or KPIs.

In 2023 (with reference to fiscal year 2022), the companies adhering to the Regulation were required to disclose the proportion of the turnover,

CapEx, and OpEx of their taxonomy-eligible, taxonomy-non eligible, and taxonomy-aligned economic activities that were associated with the 2

environmental objectives: CCM and CCA.

In 2024 (with reference to fiscal year 2023), companies within the scope were required to further expand their disclosures, compared to the

previous year, by including the proportion of turnover, CapEx, and OpEx of their taxonomy-eligible and taxonomy-non eligible activities associated

with the other 4 environmental objectives: WTR, CE, PPC, and BIO. As of 2025 (with reference to fiscal year 2024), companies will also need to

report on the alignment of those activities that contribute substantially to these 4 objectives.

2.1 ELIGIBILITY ASSESSMENT OF IVECO GROUP'S ECONOMIC ACTIVITIES

Iveco Group conducted an eligibility assessment of its core business activities and operations, comparing them against those listed in the

aforementioned Delegated Regulations of the EU Taxonomy Regulation. The Group identified the following revenue-generating eligible activities:

Board Report Sustainability Statement 36

▪ 3.3 Manufacture of low carbon technologies for transport (contributing only to the CCM objective since the activity is not enabling under the

CCA objective), representing the majority of Iveco Group's core activities and operations. This activity includes the manufacturing, repair,

maintenance, retrofitting, repurposing, and upgrading of low-carbon transport vehicles belonging to the Truck and Bus Business Units

▪ 6.5 Transport by motorbikes, passenger cars, and light commercial vehicles (contributing only to the CCM objective since the activity is not

enabling under the CCA objective), representing Iveco Group's financial services activities. This activity primarily includes active leasing for

commercial vehicles (CV), with light truck vehicles specifically considered eligible since they belong to the M1 and N1 categories

▪ 3.18 Manufacture of automotive and mobility components (contributing only to the CCM objective), which represents the Group's powertrain

activities and operations, in accordance with Delegated Regulation 2023/2485. This activity includes the manufacturing, repair, maintenance,

and upgrade of mobility components for exclusive use in vehicles and buses within categories M1, N1, N2, and N3 (previously reported under

activity 3.3). Specifically, the activity focuses on mobility components within the ePowertrain activities

▪ 5.4 Sale of second-hand goods (contributing to the CE objective), which includes the sale of second-hand goods that have been previously

used for their intended purpose by customers. Under this activity, pre-owned vehicles (both trucks and buses) are considered eligible.

Furthermore, Iveco Group identified the following additional eligible activities with regard to CapEx (Annex 1 of Delegated Regulation (EU)

2021/2178, par. 1.1.2.2, point (c)) and OpEx (Annex 1 of Delegated Regulation (EU) 2021/2178, par. 1.1.3.2, point (c)), related to the purchase of

output from Taxonomy-eligible and Taxonomy-aligned economic activities:

▪ 1.2 Manufacture of electrical and electronic equipment (contributing to the CE objective), which includes all investments and expenses related

to electronic equipment such as laptops, printers, etc

▪ 6.5 Transport by motorbikes, passenger cars, and light commercial vehicles (contributing to the CCM and CCA objectives), which includes the

leasing of company cars

▪ 7.3 Installation, maintenance, and repair of energy-efficient equipment (contributing to the CCM and CCA objectives), which includes the

installation of both HVAC systems and energy-efficient lighting systems

▪ 7.4 Installation, maintenance, and repair of charging stations for electric vehicles in buildings, and parking spaces attached to buildings

(contributing to the CCM and CCA objectives), which includes the installation of charging stations for electric vehicles

▪ 7.5 Installation, maintenance, and repair of instruments and devices for measuring, regulation, and controlling energy performance of buildings

(contributing to the CCM and CCA objectives), which includes the installation of building energy management systems (BEMS) and meters for

gas and electricity

▪ 7.6 Installation, maintenance, and repair of renewable energy technologies (contributing to the CCM and CCA objectives), which focuses mainly

on the installation of solar photovoltaic systems

▪ 7.7 Acquisition and ownership of buildings (contributing to the CCM and CCA objectives), which primarily involves the Group's management

and ownership of real estate properties

The Group conducted an assessment to determine the contribution of the aforementioned eligible economic activities to each of the six

environmental objectives. The analysis showed that the climate change mitigation objective is the most consistent with the Organisation's

business. Delegated Regulation 2022/1214 introduced a list of economic activities specific to the energy sector, including in relation to nuclear

and gas energy. Iveco Group has not identified any eligible activities within this sector, so none are included in its sustainability reporting or

considered eligible under the EU Taxonomy criteria for the period in question, as reported in Table A – Nuclear and Fossil Gas-Related Activities.

2.2 ALIGNMENT ASSESSMENT OF IVECO GROUP'S ECONOMIC ACTIVITIES – SUBSTANTIAL CONTRIBUTION CRITERIA

Once an activity is classified as eligible, it must strictly comply with the relevant Technical Screening Criteria (TSC), thus identifying that it

substantially contributes to the environmental objectives under which it is categorised. In line with the Taxonomy Regulation, the economic

activities identified as eligible were further assessed to evaluate their compliance with the Substantial Contribution Criteria (SCC) outlined in

Annex I of the Climate Delegated Act and in the Environmental Delegated Act. This assessment was conducted to identify which activities met the

Delegated Regulation requirements and to determine the corresponding proportions of turnover, CapEx, and OpEx of said activities.

▪ 3.3 Manufacture of low carbon technologies for transport (CCM)

Iveco Group ensures compliance with EU Taxonomy criteria by focusing on vehicles with low or zero CO2 emissions. For passenger transport,

M2 and M3 vehicles meet the latest Euro VI standards, while light-duty vehicles in categories M1 and N1 comply with the requirement of

emitting less than 50g CO2/km. Similarly, heavy-duty vehicles in categories N2, N3, and N1 (over 7.5 tons) align with the zero- or low-emission

specifications set by European regulations. As part of this assessment, Iveco Group considered only electric and Euro VI vehicles to be aligned

with the criteria, while CNG and LNG (methane-powered) vehicles were excluded as they did not meet the required emissions thresholds.

▪ 6.5 Transport by motorbikes, passenger cars, and light commercial vehicles (CCM)

In accordance with Regulation (EC) No. 715/2007, electric light-duty vehicles in categories M1 and N1 meet the specific CO2 emissions

threshold of below 50g CO2/km until 31 December 2025, aligning with the requirements for low- and zero-emission light-duty vehicles.

Board Report Sustainability Statement 37

▪ 3.18 Manufacture of automotive and mobility components (CCM)

This economic activity was incorporated into the EU Taxonomy to ensure due recognition for components critical to reducing greenhouse gas

emissions. Within this category, electrical components that are manufactured by Iveco Group's ePowertrain activities and supplied to third

parties for fully electric vehicles are deemed to be aligned.

▪ 5.4 Sale of second-hand goods (CE)

This activity covers Iveco Group's sale of second-hand vehicles to third parties, in compliance with the relevant EU Taxonomy criteria and the

legal standards on product conformity, liability, and guarantees. The SCC for this activity were not met, as remanufacturing may occur at

dealers' plants, and the Group lacks sufficient data from suppliers to assess SCC compliance. According to the criteria, a waste management

plan must be in place for remanufactured products, ensuring that materials not reused are recycled or, if recycling is not feasible, properly

disposed of.

Substantial contribution criteria (SCC) related to the purchase of output from Taxonomy-aligned economic activities and to individual measures

contributing to the reduction of the Organisation’s greenhouse gas emissions

As regards capital expenditure and direct non-capitalised costs (activities 6.5, 7.3, 7.4, 7.5, 7.6, 7.7, and 1.2), in the absence of sufficient data

from suppliers to assess their SCC compliance, and adopting a precautionary approach, the Group considered these activities as non-aligned.

2.3 ALIGNMENT ASSESSMENT OF IVECO GROUP'S ECONOMIC ACTIVITIES – DO NO SIGNIFICANT HARM CRITERIA

After evaluating the economic activities against the Substantial Contribution Criteria (SCC), they were further analysed for compliance with the Do

No Significant Harm (DNSH) criteria. Each DNSH technical criteria specified for the activity under assessment was addressed to ensure that,

while contributing to a specific objective, the activity did not cause significant harm to any of the other environmental objectives.

As a result of the assessment conducted and detailed below, activities 3.3, 3.18, and 6.5 were deemed aligned with the DNSH criteria.

Climate Change Mitigation

The assessment to verify no significant harm to this objective was conducted exclusively for activity 5.4 Sale of second-hand goods. The criterion

is not applicable to the Group, as it pertains to on-site generation of heat/cooling or co-generation with direct GHG emissions below 270 gCO2e/

kWh, which are not involved in the Group’s remanufacturing process.

Climate Change Adaptation

For each plant where economic activities took place, Iveco Group conducted a climate risk and vulnerability assessment to identify relevant

physical climate risks and the necessary adaptation measures to mitigate them. To evaluate potential impacts on production activities over the

short, medium, and long term, the Group carried out a comprehensive climate risk analysis in line with Appendix A of Annex I of Delegated

Regulation (EU) 2021/2139. Based on these findings, it will implement a 5-year adaptation plan to mitigate the most significant physical risks

identified.

Sustainable Use and Protection of Water and Marine Resources

The DNSH assessment for the environmental objective ‘Sustainable use and protection of water and marine resources’ applies to the following

economic activities: 3.3 Manufacture of low carbon technologies for transport, 5.4 Sale of second-hand goods, and 3.18 Manufacture of

automotive and mobility components. All three activities require that environmental risks related to water quality and water stress are addressed

through an adequate water use and protection management plan, developed in consultation with relevant stakeholders. Each year, the Group

maps the plants located in water-stressed areas to ensure proper monitoring and management of water-related risks. Degradation risks related to

water quality and water stress were identified and mitigated through Iveco Group's environmental management system, with the aim of optimising

water status. The WRI Aqueduct Water Risk Atlas was used to identify Group plants in water-stressed areas.

The criteria for activities 3.3 and 3.18 were fulfilled, as the assessment was conducted on the Group's main manufacturing sites. Conversely, the

criteria for activity 5.4 were not satisfied due to insufficient data to assess compliance; therefore, in line with a precautionary approach, this activity

was considered non-aligned.

Transition to a Circular Economy

The DNSH assessment for the environmental objective ‘Transition to a circular economy’ applies to the following economic activities: 3.3

Manufacture of low carbon technologies for transport, 6.5 Transport by motorbikes, passenger cars, and light commercial vehicles, and 3.18

Manufacture of automotive and mobility components.

To meet the criteria, activities 3.3 and 3.18 must focus on assessing and implementing sustainable manufacturing practices, specifically

addressing the feasibility and adoption of techniques aimed at:

▪ reusing and incorporating secondary raw materials and components in manufacturing

▪ designing products that offer high durability and ease of recyclability, disassembly, and adaptability

▪ implementing waste management practices that prioritise recycling over disposal during the manufacturing process

▪ ensuring the provision of information and the traceability of substances of concern throughout the product life cycle.

Board Report Sustainability Statement 38

The Group integrates circular economy principles through targeted initiatives. These include a remanufacturing programme aiming for 15% of net

spare parts sales from remanufactured components by year-end 2026, and an Eco-Design working group driving sustainability and recyclability in

new products. Manufacturing processes and waste management are continuously optimised, resulting in a waste recovery rate of over 97%. The

Group is committed to replacing hazardous substances, particularly heavy metals in painting, and to promoting sustainable chemical use,

ensuring compliance with REACH and RoHS regulations by closely monitoring supplier data (collected via the IMDS - International Material Data

System) and through strict regulatory adherence. In addition, the Group’s circular economy approach to batteries aligns with recent European

regulations (Regulation (EU) 2023/1542). Moreover, Iveco Group is establishing country-by-country agreements with battery recyclers to

implement end-of-life battery management solutions for electric vehicles.

To meet the criteria, activity 6.5 must satisfy circular economy requirements for vehicles in categories M1 and N1. These vehicles are designed to

meet rigorous sustainability standards, ensuring that at least 85% of their weight is reusable or recyclable, with 95% being reusable or

recoverable, in compliance with Directive 2005/64/EC and International Regulation R133. Additionally, applicable vehicles must comply with the

Battery Directive 2006/66/EC and new Battery Regulation 2023/1542, as well as adhere to the End-of-Life Vehicles (ELV) Directive 2000/53/EC.

The criteria were met for the economic activities categorised under this environmental objective.

Pollution Prevention and Control

The DNSH assessment for the environmental objective ‘Pollution prevention and control’ applies to the following economic activities: 3.3

Manufacture of low carbon technologies for transport, 6.5 Transport by motorbikes, passenger cars, and light commercial vehicles, 3.18

Manufacture of automotive and mobility components, and 5.4 Sale of second-hand goods.

▪ 3.3 Manufacture of low carbon technologies for transport and 3.18 Manufacture of automotive and mobility components

For these activities, companies must comply with stringent substance and emission regulations and aim at preventing the use or production of

restricted substances as specified in Appendix C to Annex I of Delegated Regulation (EU) 2021/2139. Compliance with regulations such as

REACH and RoHS is achieved by collecting supplier data via the International Material Data System (IMDS), verifying the absence of

hazardous substances, and fulfilling all communication requirements. Iveco Group fully adheres to points (a), (b), (c), (d), and (e) of Appendix C.

As regards the amendment of point (f) included in Regulation 2023/2485 on 27 June 2023, no additional requirements appear to have been

introduced beyond those outlined in the REACH Regulation. Accordingly, based on its current understanding of the regulatory framework, Iveco

Group considers the authorisation process managed as per REACH or other sector-specific regulations (e.g., valid exemptions or derogations

under RoHS and POPs) sufficient for compliance.

▪ 6.5 Transport by motorbikes, passenger cars, and light commercial vehicles

As required by the criteria, vehicles in categories M and N comply with the latest applicable Euro 6 light-duty emission standards, as defined by

Regulation (EC) No. 715/2007. They also meet the emission thresholds for clean light-duty vehicles outlined in Table 2 of the Annex to Directive

2009/33/EC. Additionally, their tyres are compliant with external rolling noise limits in the highest populated class and meet the Rolling

Resistance Coefficient requirements in the top two populated classes, as outlined in Regulation (EU) 2020/740, with compliance verifiable

through the European Product Registry for Energy Labelling (EPREL). These vehicles also meet the standards set forth by Regulation (EU) No

540/2014.

▪ 5.4 Sale of second-hand goods

For this activity, companies must comply with stringent substance and emission regulations and aim at preventing the use or production of

restricted substances as specified in Appendix C to Annex I of Delegated Regulation (EU) 2021/2139. Compliance with regulations such as

REACH and RoHS is achieved by collecting supplier data via the International Material Data System (IMDS), verifying the absence of

hazardous substances, and fulfilling all communication requirements. Iveco Group fully adheres to points (a), (b), (c), (d), and (e) of Appendix C.

As regards the amendment of point (f) included in Regulation 2023/2485 on 27 June 2023, no additional requirements appear to have been

introduced beyond those outlined in the REACH Regulation. Accordingly, based on its current understanding of the regulatory framework, Iveco

Group considers the authorisation process managed as per REACH or other sector-specific regulations (e.g., valid exemptions or derogations

under RoHS and POPs) sufficient for compliance. Furthermore, products originating from NACE code C29 activities, such as vehicles or

mobility components, must meet the latest Euro VI or Euro 6 emission standards. Tyres must comply with the highest-rated classes for noise

and rolling resistance, as required under Regulation (EU) 2020/740 and its successors, ensuring energy efficiency and sustainability.

Restoration of Biodiversity and Ecosystems

The DNSH assessment for the environmental objective ‘Restoration of biodiversity and ecosystems’ applies to the following economic activities:

3.3 Manufacture of low carbon technologies for transport and 3.18 Manufacture of automotive and mobility components.

To evaluate the impact of these activities on biodiversity and ecosystems, different methodologies are applied at manufacturing sites located near

protected areas of particular environmental interest. Specifically, Iveco Group employs the Biodiversity Value Index (BVI) methodology, which

provides an in-depth analysis of ecosystems within a 5-kilometre radius of these sites. This assessment determines biodiversity levels and

identifies appropriate improvement measures.

Additionally, the Group integrates the Biodiversity Risk Evaluation (BRE) methodology, which assesses the impact of plant operations on

biodiversity and natural resources, irrespective of their overall contribution to the surrounding ecosystem. The BRE assessment generates risk

maps for each plant, indicating potential biodiversity risks. These maps guide the identification of standardised indicators and the implementation

of targeted mitigation measures based on assigned risk scores.

Board Report Sustainability Statement 39

For operations near biodiversity-sensitive areas, Iveco Group has performed appropriate assessments and implemented the necessary mitigation

measures to minimise any adverse impacts on local ecosystems.

DNSH criteria related to the purchase of output from Taxonomy-aligned economic activities and to individual measures contributing to the

reduction of the Organisation's greenhouse gas emissions

As regards capital expenditure and direct non-capitalised costs (activities 6.5, 7.3, 7.4, 7.5, 7.6, 7.7, and 1.2), in the absence of sufficient data

from suppliers to assess their compliance with the DNSH principle, and adopting a precautionary approach, the Group considered these activities

as non-aligned.

2.4 MINIMUM SAFEGUARDS ASSESSMENT

The EU Taxonomy Regulation, under Article 18, establishes the requirements for economic activities to be considered sustainable. Indeed, they

must not only be environmentally sustainable by meeting the Taxonomy's Technical Screening Criteria (TSC), but also socially sustainable by

adhering to minimum safeguards to ensure compliance with both human and labour rights. To this end, companies are required to conduct an

analysis at both the corporate and activity levels to assess their alignment with internationally recognised guidelines on human rights and

business ethics, covering, but not limited to, issues such as corruption, taxation, and other relevant matters.

Article 18 of the Regulation outlines the specific requirements for Minimum Safeguards, referencing key international standards for responsible

business conduct. These include the OECD Guidelines for Multinational Enterprises, the UN Guiding Principles on Business and Human Rights,

the eight fundamental conventions of the International Labour Organization (ILO), and the International Bill of Human Rights. The Regulation also

aligns with the ‘do no significant harm’ (DNSH) principle as defined by Article 18 of the EU Sustainable Finance Disclosure Regulation (SFDR).

To ensure compliance with the Minimum Safeguards, Iveco Group has conducted a specific assessment of its activities. The Organisation

demonstrates its commitment to human rights through its Code of Conduct, Supplier Code of Conduct, and Human Rights Policy. Additionally, it

monitors human rights across its internal operations, supply chain, and customer base through dedicated processes. To guarantee full

compliance with anti-corruption and bribery laws, the Group implements an Anti-Corruption Policy and specific procedures. Moreover, its tax risk

management strategy focuses on minimising the risk of violating tax regulations, while ensuring operations align with the tax system's principles

and objectives.

With regard to antitrust and competition management, Iveco Group recognises the critical importance of an open and competitive market, which is

why it is fully committed to complying with all applicable competition and antitrust laws and to scrupulously refraining from business practices that

may violate them (such as the establishment of cartels, price fixing, market divisions, production or sales limitations, tying arrangements, or the

exchange of commercial information or business views).

The Group has a Competition Compliance Programme in place to promote compliance with competition and antitrust laws, raise awareness within

the Organisation of competition law implications for its businesses, and help identify and minimise the risk of any violations. This programme

includes a dedicated Competition Policy, overseen by the Legal, Compliance & Corporate Governance (LC&CG) Department and available on the

corporate website.

The Competition Policy includes a set of relevant practical guidelines by subject matter, and applies to all directors, officers, and employees, as

well as to those acting for or on behalf of all Iveco Group companies worldwide. It sets detailed and stringent rules to be observed when dealing

with competitors, trade associations, suppliers, and customers, as well as rules for responding to competition authority investigations,

emphasising the need for full cooperation in the event of antitrust or competition investigations or of any requests for information regarding alleged

anti-competitive conduct. Iveco Group also has a specific organisational unit dedicated to antitrust and competition law.

The Group’s online training on the Code of Conduct includes a module on Antitrust and Competition Law. Additionally, dedicated in-person

training on antitrust and competition aspects is provided to Senior Leadership Team (SLT) members, while ad hoc in-person training initiatives are

deployed in several jurisdictions to maintain a high level of understanding of the importance of competition law compliance, with training sessions

and workshops tailored to the specific needs of the Business Units and markets involved. Each year, a number of jurisdictions are selected for

targeted, business-specific training, complementing the general Antitrust and Competition Law course available online.

In terms of grievances, a Compliance Helpline is available to all Iveco Group employees, customers, suppliers, and third parties to report potential

violations of applicable laws, corporate policies, or the Code of Conduct. The Organisation further safeguards consumer interests through its

Code of Conduct and Supplier Code of Conduct, which emphasise fair competition and adherence to antitrust regulations.

With regard to the antitrust case involving Iveco Poland, as reported in ‘Legal Proceedings’ in ‘Business Overview’ in this Report, Iveco Group has

appealed the Office of Competition and Consumer Protection (UOKIK) decision before the Polish court and has not made any specific accounting

provisions in relation to the case. More importantly, this appeal did not affect the Organisation’s alignment with the Minimum Safeguards.

Meanwhile, in line with its ongoing commitment to fair competition, the Organisation continued to implement its Competition Compliance

Programme, which is part of its standard business practice irrespective of any specific antitrust cases. Iveco Group’s regular compliance activities

include the delivery of antitrust training sessions and the daily active support provided by the Group’s Antitrust Unit to the business. As part of

these ongoing efforts, two scheduled training sessions were delivered in November by the Antitrust Unit to key managerial staff in Poland. These

sessions focused on horizontal and vertical relations and agreements under antitrust rules applicable to the dealership agreement, as well as on

key aspects of sales and after-sales contract provisions. The training also featured interactive Q&A sessions during which participants were able

to engage on a wide range of antitrust topics. In the event of a final and non-appealable ruling in the ongoing case in Poland, the Organisation will

reassess its compliance with the Minimum Safeguards.

(29) Regulation (EU) 2019/2088 of the European Parliament and of the Council of 27 November 2019 on sustainability-related disclosures in the financial services sector (OJ L 317,

9.12.2019, p. 1).

(30) 2023/C 211/01 Communication, FAQ 2.

Board Report Sustainability Statement 40

Iveco Group employs a range of tools to ensure compliance, both internally and externally, with the Minimum Safeguards, supported by the

comprehensive regulatory framework detailed in the chapter ‘Relevant Policies in the Internal Regulatory Framework’. In addition, the Group

aligns with the ‘do no significant harm’ principle of the SFRD(29), under Article 2(17)(30), by addressing the gender pay gap and gender diversity

within governance bodies and by reporting on the respective indicators in the Annual Report.

2.5 CALCULATION OF EU TAXONOMY-RELATED KPIs AND CONTEXTUAL INFORMATION

Accounting Policy

The annexes of the Commission Delegated Regulation (EU) 2021/2178 (hereafter referred to as the ‘Disclosure Delegated Act’) require

companies to calculate the proportion of turnover, capital expenditure (CapEx), and operating expenditure (OpEx) associated with eligible and

aligned activities. To meet this regulatory requirement, the Group identified its eligible activities, assessed which of these met the alignment

criteria, and calculated the three KPIs as required by the Regulation.

In November 2023, the European Commission adopted the Environmental Delegated Act, which, via Annex V, amended the Disclosure Delegated

Act, specifically the format of the tables used for KPI calculations. The updated EU Taxonomy tables are provided at the end of the section

‘Calculation of EU Taxonomy-related KPIs and Contextual Information’.

Iveco Group's Sustainability and Finance departments collaborated to identify the values needed to measure the KPIs to be reported. In line with

the criteria outlined in Annex I of the EU Commission Delegated Act 2021/2178, these values were derived from balance sheet items, as

described hereafter.

Numerators were calculated based solely on balance sheet items associated with the identified activities. The calculation of denominators, on the

other hand, included all items specified by the regulations at the consolidated Iveco Group N.V. level, as detailed in the Contextual Information

section below.

The turnover data was derived from the official consolidated financial statement, representing the total value of revenue from goods and services

sold and invoiced during the reference period. To prevent double counting, all intercompany transactions were excluded from the revenue figures.

The CapEx was calculated based on additions to tangible and intangible assets, as well as long-term leases identified from company reports,

serving as the foundation for any changes in asset disclosures.

To align with the taxonomy criteria, the OpEx was calculated as the sum of operating expenses related to capital investment projects (by nature),

costs associated with maintenance and cleaning (by destination), and short-term leases.

EU Taxonomy-related KPIs and Contextual Information

The proportion of turnover, CapEx, and OpEx associated with eligible and non-eligible economic activities is presented as an aggregate

percentage for Iveco Group in each respective category.

Turnover KPI

The Turnover KPI was calculated as the net turnover derived from eligible products or services (numerator) divided by the total net turnover

(denominator). In line with the Disclosure Delegated Act, Iveco Group used the following values to calculate the share of turnover:

▪ the denominator represents the Group's consolidated net turnover from industrial activities. Net turnover is defined as the revenue from the sale

of products and provision of services, minus sales rebates and value-added taxes directly linked to turnover. Accordingly, the KPI denominator

corresponds to the Annual Report’s Note 1, line item ‘Total Industrial Activities’, equal to €14,948 million. In accordance with EU Communication

C/2023/305 - FAQ 17, the turnover from discontinued operations is reported as a separate line item and, therefore, should not be included in

the Taxonomy KPI

▪ the numerator is equal to the portion of net sales from trucks and buses (new and used), powertrains, and services, as well as revenues from

repair, maintenance, and leasing fees. Revenues from specialty vehicles (Defence and Fire Fighting) were excluded as they could not be

associated with any of the Taxonomy activities. For the level of eligibility and alignment, please refer to Table B.

CapEx KPI

In line with the Disclosure Delegated Act, Iveco Group used the following values to calculate the share of capital expenditures:

▪ the denominator represents the increases in Property, Plant, and Equipment (excluding assets sold under Buy-Back commitments) and Right-

of-Use (RoU) Assets, as well as Intangible Assets (excluding goodwill), as reported respectively in Note 13 and 12 of the Annual Report. As

required by the EU Taxonomy Regulation, the values considered correspond to the line items marked as ‘Additions’ in the relevant tables, thus

excluding the effects of amortisation, depreciation, impairment losses, divestments, assets classified as held for sale, translation differences,

and other adjustments. The consolidated value of the sum of tangibles, intangibles, and RoU assets related to Industrial Activities was equal to

€1,028 million

Board Report Sustainability Statement 41

▪ the numerator is equal to the portion of capital expenditures within the denominator attributable to the revenue-generating activities identified

(CapEx A) and to the investments related to the purchase of output from Taxonomy activities (CapEx C). For the level of eligibility and

alignment, please refer to Table C.

OpEx KPI

In line with the Disclosure Delegated Act, Iveco Group used the following values to calculate the share of operating expenditures:

▪ the denominator includes all direct non-capitalised costs related to maintenance, building renovation, research and development, short-term

leases, and any other direct expenditures related to the day-to-day servicing of property, plant, and equipment assets

▪ the numerator is equal to the portion of direct non-capitalised costs within the denominator attributable to the revenue-generating activities

identified (OpEx A) and to the direct costs related to the purchase of output from Taxonomy activities (OpEx C). For the level of eligibility and

alignment, please refer to Table D.

The reported values do not include any amounts related to Iveco Group's intercompany transactions associated with the economic activities

assessed as part of the taxonomy analysis.

Furthermore, no CapEx or OpEx items relate to plans for expanding economic activities that are aligned with the Taxonomy Regulation.

The CapEx and OpEx values allocated to the numerators were calculated using the Tool Semplice (specific to the Initiatives Mngt system),

aggregating data based on dedicated fields for tracking projects and on their purpose/objective.

The tables on the following pages contain information on the proportions of turnover, capital expenditure, and operating expenditure identified as

eligible, non-eligible, and aligned according to the European Taxonomy, as per the new templates included in Annex V of the Commission

Delegated Regulation (EU) 2023/2486 of 27 June 2023 supplementing Regulation (EU) 2020/852 of the European Parliament and European

Council (Environmental Delegated Act).

Table A – Nuclear and Fossil Gas-Related Activities


Nuclear energy related activities
Nuclear energy related activities
1	The undertaking carries out, funds or has exposures to research, development, demonstration and deployment of innovative electricity generation facilities that produce energy from nuclear processes with minimal waste from the fuel cycle	No
2	The undertaking carries out, funds or has exposures to construction and safe operation of new nuclear installations to produce electricity or process heat, including for the purposes of district heating or industrial processes such as hydrogen production, as well as their safety upgrades, using best available technologies	No
3	The undertaking carries out, funds or has exposures to safe operation of existing nuclear installations that produce electricity or process heat, including for the purposes of district heating or industrial processes such as hydrogen production from nuclear energy, as well as their safety upgrades	No
Fossil gas related activities
4	The undertaking carries out, funds or has exposures to construction or operation of electricity generation facilities that produce electricity using fossil gaseous fuels	No
5	The undertaking carries out, funds or has exposures to construction, refurbishment, and operation of combined heat/cool and power generation facilities using fossil gaseous fuels	No
6	The undertaking carries out, funds or has exposures to construction, refurbishment, and operation of heat generation facilities that produce heat/cool using fossil gaseous fuels	No

Board Report Sustainability Statement 42

Table B - Proportion of Turnover from Products Associated with Taxonomy-Aligned Economic Activities

Disclosure covering Financial Year 2024

Board Report Sustainability Statement 43

Table C - Proportion of CapEX from Products Associated with Taxonomy-Aligned Economic Activities

Disclosure covering Financial Year 2024

Board Report Sustainability Statement 44

Table D - Proportion of OpEX from Products Associated with Taxonomy-Aligned Economic Activities

Disclosure covering Financial Year 2024

(31) The Climate Pledge signature .

(32) The target refers to vehicles manufactured in Europe. Furthermore, it cannot be reported as an absolute value.

Board Report Sustainability Statement 45

3. CLIMATE CHANGE (E1)

Iveco Group's materiality assessment identified Climate change due to own operations, Climate change due to vehicles, and Climate change due

to supply chain as material sustainability matters, all linked to ESRS E1 and specifically to its sub-topics:

▪ ‘Climate change adaptation’

▪ ‘Climate change mitigation’

▪ ‘Energy’.

The expected short-term impacts related to Climate change due to own operations were identified as negative and described by stakeholders as

follows: “The greenhouse gas emissions (Scope 1 and 2) generated by Iveco Group's own operations contribute to climate change”.

The expected short-term impacts related to Climate change due to vehicles were identified as negative and described by stakeholders as follows:

“The greenhouse gas emissions generated by the use of sold vehicles contribute to climate change”. The expected medium-term impacts, on the

other hand, were identified as positive and described by stakeholders as follows: “The launch of new electric vehicles, as well as the use of

alternative fuels and propulsions (e.g., natural gas, biomethane, hydrogen, and electric and hybrid engines) capable of reducing emissions during

vehicle use, contribute to tackling climate change”.

The expected short-term impacts related to Climate change due to supply chain were identified as negative and described by stakeholders as

follows: “The greenhouse gas emissions generated by Iveco Group's supply chain contribute to climate change (e.g., inbound and outbound

logistics flows)”.

For more information, see 1.9 Identifying and Assessing Material Impacts, Risks, and Opportunities in this Sustainability Statement.

3.1 TRANSITION PLAN FOR CLIMATE CHANGE MITIGATION (E1-1)

Conscious of the urgency of climate change challenges and of the major role that decarbonisation will play in the short term, Iveco Group has set

itself the ambitious goal of achieving net zero carbon by 2040 – ten years ahead of the deadline set by the Paris Agreement – in accordance with

The Climate Pledge signed by the Organisation(31). To ensure the timely delivery of its decarbonisation strategy, the Group has defined specific

strategic sustainability targets for Scope 1, 2, and 3 emissions.

For Scope 1 and 2 emissions, Iveco Group is committed to reducing CO2 emissions in its manufacturing processes by minimising fossil fuel use

and increasing the use of renewable energy.

For Scope 3 emissions, a sustainability target has been set for year-end 2030 and incorporated into the Strategic Business Plan: to reduce by

38% the Scope 3 CO2 emissions from the use of sold products(32) per vehicle/km (compared to 2022). To reach this target, the Group aims to

ensure electric vehicles account for at least 35% of its sales by 2030 by gradually shifting its vehicle sales towards battery electric vehicles (BEV)

and fuel cell electric vehicles (FCEV).

The main actions to reach these targets are reported in 3.4 Climate Actions and Targets, including details of relevant investments. CapEx and

OpEx related to economic activities identified by the Taxonomy Regulation are reported in 2. EU Taxonomy on Sustainable Activities.

As regards the governance of Iveco Group's decarbonisation path, the ultimate responsibility for defining and implementing the decarbonisation

strategy lies with the Board of Directors. Th e Board's ESG Committee is responsible, among other things, for assisting the Board itself in

reviewing and guiding this strategy, as well as the risk management policies on climate change, and for monitoring the implementation of

measures to meet climate change targets, such as those for CO2 emissions and energy efficiency. In addition, the ESG Committee ensures

responsible management of climate risks and identifies trends and opportunities, including the potential impacts of new products under

development and of new market trends and conditions.

At management level, the ultimate responsibility for initiatives focusing on energy efficiency and on the management of CO2 emissions lies with

the Senior Leadership Team (SLT). The SLT members are responsible for defining the sustainability strategy and for integrating sustainability

aspects into operating processes. To ensure focus and accountability, each Business Unit has full responsibility for the global growth and

performance of its respective business.

At the operational level, for Scope 1 and 2 emissions, Iveco Group relies on a dedicated internal structure to manage energy resource

conservation. Energy management activities are coordinated both centrally and at plant level by the Energy team, to ensure alignment and

support across the Organisation.

For Scope 3 emissions, responsibilities are assigned to the respective departments based on their area of expertise.

Board Report Sustainability Statement 46

Iveco Group continuously monitors the progress of its transition plan; below is a snapshot of the results achieved in 2024.

CO2 Emissions Targets(a)

Iveco Group


Scope 1 & 2	Target	2024
Absolute CO2 emissions (Scope 1 & 2) from the manufacturing plants within the Focus Area (b) (tons CO2eq)	2030: -50% vs 2019	-25.2%
Scope 3
Cat. 1 - Absolute CO2 emissions generated by major suppliers of purchased goods, services, and capital goods (tons CO 2 eq)	2030: -30% vs 2022	Activities on schedule
Cat. 4 - CO2 emissions per ton of goods shipped (kg CO2 eq)	2026: -7% vs 2022	-4.9%
Cat. 11 - CO2 emissions from the use of sold products (c) (grams CO 2 eq per vehicle/km)	2030: -38% vs 2022	-6.6%

(a) For the calculation methodology used, see 3.5 Climate Metrics.

(b) For the definition of the Focus Area scope, see 1.1 General Basis for the Preparation of the Sustainability Statement.

With regard to locked-in emissions, these stem from a combination of past and present investments, strategic decisions, and infrastructure

choices that could make the decarbonisation path more challenging. Internal combustion engine (ICE) vehicles already sold or in production will

continue to generate CO₂ emissions throughout their lifespan, while existing factories and supplier agreements, designed around traditional ICE

vehicle manufacturing, continue to rely on emissions-producing processes. Moreover, dependence on fossil fuel-powered logistics, energy-

intensive manufacturing, and dealership networks centred on ICE vehicle sales further sustain these emissions, slowing down the pace of

emission reductions. The gradual expansion of electric vehicle (EV) charging infrastructure combined with the slow transition to renewable energy

sources creates interlinked dynamics to overcome. The pace of change is also affected by government policies, market incentives, and consumer

preferences, as significant investments in regions with lower EV adoption or with regulations favouring ICE vehicles could influence the transition's

trajectory.

3.2 MANAGING CLIMATE RELATED RISKS AND OPPORTUNITIES (SBM-3, IRO-1)

At Iveco Group, climate risk management is integrated into a Group-Wide multidisciplinary risk management process designed to identify and

assess climate-related risks and opportunities, as well as the current and anticipated effects of climate change relevant to the Group's business

model and value chain. This process encompasses direct operations, the supply chain (upstream), and products (downstream). Climate-related

risks and opportunities span three time horizons, meaning they can be:

▪ short-term (0-1 years), as per climate change assessments of physical risks

▪ medium-term (1-6 years), as per the Group's Enterprise Risk Management (ERM), Strategic Business Plan, and 2030 climate scenario

▪ long-term (6-16 years), as per the Group's 2040 net zero carbon strategies and targets, set in line with the Paris Agreement, and its aligned

2040 climate scenario.

The Group assesses the implications of climate-related risks and its own level of climate resilience and adaptability using the requirements of both

the ESRS and the International Financial Reporting Standards (IFRS) S2 Climate-related Disclosures for reference. This assessment considers

each of the following risk categories to identify and assess risks, their likelihood and magnitude of impact, and the opportunities they present:

▪ current and emerging regulations

▪ technology risk

▪ policy and legal risks

▪ market risk

▪ reputation risk

▪ acute physical risk

▪ chronic physical risk

▪ liabilities.

3.2.1 Physical risks

The first step in Iveco Group's physical risk identification and assessment process consists in evaluating the relevance of all such risks for each

site within the risk perimeter, through the analysis of climate zones and site-specific morphological features (such as altitude and proximity to

rivers, coasts, or mountains). The Group evaluates its physical risk exposure by taking into account specific drivers for each physical event (which

is also relevant when selecting suitable data sources).

(33) Representative Concentration Pathways (RCPs) are a climate scenario analysis tool (with each scenario describing a potential future pathway). The RCP 8.5 scenario assumes a high

GHG emission future without effective climate change mitigation policies.

(34) 2024's total insured value under the control of the Loss Prevention Centre of Competence as at the third quarter of the year.

(35) Figures relate to the period from 1 July 2023 to 30 June 2024 (Insurance Year).

(36) The Global Efficiency Index for loss mitigation measures (GEI = cost of protection/reduction of expected damage) is recognised as a measure of best practice for industrial risk

management.

(37) International Financial Reporting Standards.

Board Report Sustainability Statement 47

For each physical risk driver, the analysis, evaluation, and selection of data tools are based on:

▪ data quality – in terms of terrain resolution (i.e., the level of spatial detail in elevation and topographic data), estimation accuracy (which

depends on the geographical scale, colour mapping, numerical precision), and the transparency of the calculation process

▪ time flexibility – the availability of data across different time horizons and (ideally) its applicability to all project phases (thus enabling both short-

and long-term analysis)

▪ accessibility – the availability of open-access tools that support the replication of analyses over time

▪ multiple applications – a tool's ability to assess multiple physical risks concurrently.

During the subsequent risk evaluation phase, these drivers are transposed onto a matrix and classified according to a 4-level scale (high,

medium-high, medium-low, low) based on predefined impact thresholds specific to each physical risk event. This approach helps determine the

economic impact of each risk event in terms of property damage (cash flow), business interruptions (EBIT), and other direct or indirect costs

(beyond EBIT or cash flow). The net impacts of each physical risk are then quantified and recorded on the ERM impact scale, considering each

plant's specific characteristics, any physical mitigators (such as the presence of mobile dams for river flooding), and insurance coverages. The

results obtained are then submitted to and validated by the relevant stakeholders within Iveco Group associated with the selected sites.

In 2024, the Group performed an analysis over the short, medium, and long term (2025-2040) of each physical risk event for each site within its

risk perimeter (including proprietary plants and the sites of suppliers and dealers of property), in order to evaluate potential changes in risk

exposure over time. The analysis used the weather patterns of the RCP(33) 8.5 scenario of the Intergovernmental Panel on Climate Change

(IPCC), which is based on various assumptions regarding emissions, policies, and rising temperature levels. The main drivers considered when

evaluating Iveco Group's short-, medium- and long-term physical risks were data tool results for specific physical risks and IPCC predictions of

variables such as: maximum precipitation levels; surface wind speed; maximum temperatures; and consecutive dry days.

As regards physical climate risk adaptation, the industrial risks associated with high-frequency/high-severity natural hazards are increasingly an

issue for large manufacturing companies. Iveco Group's Risk Management Centre of Competence analyses such hazards with the support of its

loss prevention engineering provider and of the technical departments of the insurance and reinsurance companies represented on the Group's

insurance panel. This analysis takes place during field audits and for all new project developments, using analytical techniques as well as

practical, cost-effective methodologies to develop optimised risk-mitigation measures where feasible.

The 2024 assessment of material physical climate risks covered 84% of the Group's insured value(34), with completion schedules for implementing

mitigation plans typically set at less than 5 years. Furthermore, 100% of new projects and initiatives are analysed from the earliest stages of

development to ensure the highest level of prevention and protection from material physical climate risks. Any physical risk event affecting direct

operations is considered a significant business disruptor (potentially having a substantive financial or strategic impact on business) if it results in

significant value erosion potentially leading to critical financial impacts, jeopardising the Group's market position (high impact risk). The

aforementioned risks may cause material adverse effects in terms of business interruptions, property damage, or other indirect costs, thus

impacting the Group's EBIT and/or cash flow. It is predicted that climate change will lead to an increase in water stress and in extreme weather

events, such as floods, hurricanes, cyclones, tornados, hailstorms, heat waves, and bush fires – inevitably disrupting production and component

supplies.

Based on the 2024 assessment of Iveco Group sites within the risk perimeter and an initial pilot evaluation of supplier and dealer of property

(DOP) sites, most of them are located in areas that are not particularly associated with high-risk exposure, with the exception of a few located in

areas susceptible to hailstorms, flash floods and/or water stress. However, extreme natural events still pose a risk to the Group given the

significant damage they can cause. Overall, considering the mitigation measures in place and the nature of the risks, Iveco Group plants' main

economic vulnerability is linked to their exposure to river floods, hurricanes, cyclones, and tornados, whereas suppliers' economic exposure is

mainly linked to water stress, hailstorms, and cold wave events.

Over the year(35), the Group invested a total of €0.16 million in loss prevention and mitigation measures, specifically in recommended

improvements to align its sites to its loss prevention standards. These targeted investments cut loss expectancies by approximately €92 million,

resulting in a Global Efficiency Index(36) (GEI) of 0.17, in line with the highest international standards. The goal of Iveco Group's loss-prevention

investment strategy is to reduce damage to assets and minimise any resulting production stoppages (business interruptions), at both site and

Group level, through the full or partial adoption of existing physical protection recommendations. In 2024, the Group's loss-prevention investments

cut the expected loss due to property damage by 81% and due to business interruptions by 19%.

3.2.2 Transition risks

Iveco Group's transition risk assessment process starts with the identification of key trends and drivers relevant to the Organisation and its

industry. The 2024 assessment was performed according to IFRS(37) S2 guidelines – considering the main climate-related risk categories specified

therein: Market Risk, Policy and Legal Risks, Technology Risk, Reputation Risk, and Liabilities – as well as ESRS requirements.

(38) Representative Concentration Pathways (RCPs) are a climate scenario analysis tool (with each scenario describing a potential future pathway). RCP 1.9 is a very ambitious scenario,

being the IPCC's lowest emission pathway towards limiting global warming to below 1.5°C by the end of the century, which is the aspirational goal of the Paris Agreement.

(39) Net Zero Emissions, a scenario that outlines a pathway for the global energy sector to achieve net zero CO2 emissions by 2050.

(40) Shared Socioeconomic Pathways (SSPs) describe alternative socio-economic developments. SSP1 ‘Sustainability – Taking the Green Road’ considers a gradual but pervasive shift

towards a more sustainable path.

(41) Principle 15 of the Rio Declaration on Environment and Development, approved by the United Nations in 1992.

Board Report Sustainability Statement 48

The main drivers identified to evaluate Iveco Group's medium- to long-term transition risks and opportunities were: the diffusion of electric

vehicles; changes in mobility habits; unavailability and price volatility of materials; carbon taxes and green accounting practices; tightening of

vehicle regulations; new green production requirements; mandatory climate-related disclosures; development of green products, processes, and

technologies; and changing stakeholder perceptions of climate-related themes.

The Group then created a risk register to map the climate-related transition risks and opportunities most relevant to the Organisation (linking each

to the aforementioned drivers) and assessed their relevance through a qualitative analysis – along with an in-depth quantitative analysis of a

number of them. Risk assessment results were subsequently validated within the Group's Climate Change Risk Management (CCRM) framework

through a preliminary review by the Enterprise Risk Management (ERM) function, followed by final validation by the Senior Leadership Team

(SLT).

The medium- to long-term (2030-2050) analysis of transition risks and opportunities was performed using the RCP (38) 1.9 scenario of the

Intergovernmental Panel on Climate Change (IPCC), which is based on various assumptions regarding future emissions, policies, and economic

trends. Iveco Group also adopted the NZE (39) scenario of the International Energy Agency (IEA) to perform a comprehensive analysis of the

energy and automotive markets, as well as the SSP1(40) scenario developed by the IPCC. Transition risks are considered significant business

disruptors (potentially having a substantive financial or strategic impact on business) if they result in any of the following:

▪ a negative effect on one or more key strategies for the Group's stability and growth

▪ a prolonged suspension of essential business activities

▪ a seizure of key assets or of profits

▪ negative repercussions on the Group's reputation or image, resulting in: a substantial decrease in share price; strained relations with

stakeholders; and/or a significant adverse impact on rankings, potentially leading to exclusion from financial or sustainability rating indices.

Based on the analysis performed, Iveco Group's top (most severe) transition risks are associated with uncertainties regarding: the shift towards

mixed transport, energy costs, the life cycle of new products, the growing need for investments in health and safety, and climate-related

regulations and disclosures. Meanwhile, opportunities are linked to developments in market demand and financial benefits owing to electrification

consolidation and the expansion of the internal combustion engine (ICE) product market in countries with more flexible ESG laws and regulations.

3.3 POLICIES RELATED TO CLIMATE CHANGE (E1-2)

The Iveco Group Environmental Policy and Energy Policy regulate those activities that generate the greatest impact and/or potential risk with

regard to the ESRS E1 sub-topics ‘Climate change mitigation’, ‘Climate change adaptation’, and ‘Energy’, and support the Group in reaching its

sustainability targets and ambitions.

3.3.1 Environmental Policy

Iveco Group considers climate change mitigation and adaptation, as well as energy, to be of the utmost importance, as the greenhouse gas

emissions generated by the Group's own operations (Scope 1 and 2), by the use of its sold vehicles, and by its supply chain (e.g., inbound and

outbound logistics flows) all contribute to climate change. On the other hand, the launch of new electric vehicles and the use of alternative fuels

and propulsions (such as natural gas, biomethane, hydrogen, and electric and hybrid vehicles), which reduce emissions during vehicle use,

contribute to tackling climate change. Furthermore, failure to comply with relevant regulations on engine and vehicle emissions can lead to

considerable penalties and reputational damage. The Environmental Policy outlines Iveco Group's short-, medium-, and long-term commitments

to responsibly managing its environmental aspects (particularly energy, water and natural resources, raw materials, hazardous substances,

polluting emissions, and waste). It also explicitly reflects the Organisation's belief that efficient resource use and environmental impact reduction

are crucial strategies in creating added value for both itself and the communities in which it operates. Iveco Group thus anticipates risks that could

potentially impact the environment and human health by adopting a precautionary approach when designing products, overseeing manufacturing

processes, defining logistics flows, and managing product end-of-life: namely, the precautionary principle introduced by the Rio Declaration on

Environment and Development(41). The policy addresses the key steps towards reaching Iveco Group's ambitious goal of achieving net zero

carbon by 2040. This includes complying with all applicable environmental legislation as well as other environmental requirements, and, where

possible, adopting early versions of new legal provisions if more stringent. This commitment extends to all stages of the upstream and

downstream value chain: purchasing processes, product concept and development, operations, logistics and distribution, sales and after-sales,

remanufacturing, and product end-of-life. The key measures include:

▪ reducing energy consumption, lowering greenhouse gas emissions, and promoting renewable energy

▪ reducing air emissions

▪ promoting sustainable mobility

(42) For the definition of the Focus Area scope, see 1.1 General Basis for the Preparation of the Sustainability Statement.

Board Report Sustainability Statement 49

▪ adopting an eco-design approach to minimise the environmental impact of vehicles by developing products that deliver industry-leading

performance in terms of fuel efficiency, noise and polluting emissions, and recoverability rates

▪ minimising the environmental impact of inbound and outbound logistics.

Iveco Group also engages and partners with stakeholders to promote environmental care, increase understanding of environmental issues, and

disseminate best practices, involving environmental experts from within and outside the Organisation. The Environmental Policy applies to Iveco

Group N.V. and its subsidiaries, to the directors, officers, and employees of such entities, and to those acting for or on behalf of such entities.

Iveco Group's Board of Directors endorses the policy's principles and oversees its implementation, the executive responsibility for which lies with

the Senior Leadership Team (SLT), tasked with developing appropriate operational procedures and ensuring adequate allocation of resources

and professional expertise. The policy, available on the corporate website, has been shared with all Group employees and senior management

worldwide.

3.3.2 Energy Policy

The Energy Policy outlines Iveco Group's commitment to improving the energy performance of its processes in order to enhance resource use

efficiency and reduce environmental impacts, pursuing the principles of sustainable development and continuous improvement. The Group's aim

is to develop its business strategically through sustainable technology, monitoring risks and adopting measures to mitigate them, ultimately

delivering economic benefits and improvements for the environment and society in which it operates. The Energy Policy is implemented in

compliance with the ISO 50001:2018 standard, and is available on the corporate Intranet.

3.4 CLIMATE ACTIONS AND TARGETS (E1-3, E1-4)

3.4.1 Scope 1 and 2 emissions actions and targets

Iveco Group works towards climate change mitigation by reducing its energy consumption and use of fossil fuels and by minimising air pollution,

with the primary objective of reducing CO2 emissions from its manufacturing processes. Managing greenhouse gas (GHG) emissions and

optimising energy consumption are therefore prerequisites for the continuous improvement of the Group's performance and the protection of the

environment in which it operates. As stated in its Energy Policy, Iveco Group is committed to reducing: the use of fossil fuels in favour of

renewable energy sources; energy consumption through more efficient products and processes; and GHG emissions by cutting energy

consumption while adopting both conventional and innovative technical solutions. Promoting employee involvement and raising awareness of the

importance of conserving energy resources is key to achieving these improvement targets.

Energy efficiency is both a priority and an opportunity for companies to reduce operating costs and mitigate climate change. With this in mind,

below are a few examples of how sustainability matters have become embedded in Iveco Group's daily activities and how they help drive its way

of doing business.

An efficient energy management system requires effective monitoring of energy performance. The Group has achieved this by adopting specific

energy performance indicators (EnPI) to assess the benefits and effectiveness of its initiatives, plan improvement measures, and establish new

and ever-more challenging targets.

In 2024, Iveco Group continued to monitor energy performance at each of its plants (Focus Area(42)), as well as their secondary vectors and their

compliance with the Group's Energy Action Plan, using its Energy Monitoring & Targeting (EMT) management and control platform. Additionally, it

enhanced the exchange and dialogue between plants by means of an Intranet portal focusing on procedures, best practices, regulations,

corporate guidelines, and solutions to energy-related issues and challenges. The initiative led not only to an increased level of people

engagement and awareness, but also to numerous technical and management improvement projects involving the redesign of processes,

equipment conversions and retrofitting for decarbonisation, and operational changes to new installations.

With regard to Iveco Group's Focus Area scope, as at the end of 2024, 22 plants were ISO 50001:2018 certified, evidence of the Group's quest to

reduce its energy impact. The main advantage of ISO 50001 certification is its systematic approach to continuous improvement in energy

performance; this approach leads to a more efficient and rational use of energy, which translates into economic benefits and fewer GHG

emissions. These efforts also applied to other sites, each governed by its own energy management system, resulting in the logistics hub in San

Mauro Torinese (Italy) becoming Iveco Group's first ISO 50001:2018 certified non-manufacturing site. The Group also obtained ISO 50005:2021

attestation (which provides for a phased approach to ISO 50001:2018 certification) for its dealers of property (DOPs) in Trento (Italy), Barcelona

and Madrid (Spain), Vitrolles (France), Hamburg, Berlin, Cologne, Mannheim, and Nuremberg (Germany), Farnborough (UK), Lodenice (Czech

Republic), and Manolache (Romania).

To reduce energy consumption and CO₂ emissions, targeted actions have been implemented across several key areas:

▪ Metering: the system was expanded to gain deeper insights into consumption patterns and improve energy management

▪ Buildings: efforts involved wall insulation improvements, roof repairs, the installation of rapid doors, and office automations, all working

collectively to reduce energy loss

▪ Lighting: involving the installation of high-efficiency intelligent LED systems with presence detectors and dimmers that ensure lights are used

only when needed, both inside and outside facilities

Board Report Sustainability Statement 50

▪ Heating and Cooling: the systems were optimised by electrifying heating through heat pumps powered by photovoltaic systems, replacing

outdated heating equipment, lowering heating temperatures, and establishing startup and shutdown protocols with optimal set points.

Additionally, cooling requirements were minimised, with air vents strategically placed to control temperature effectively while conserving energy.

The combination of these initiatives played a substantial role in lowering both energy consumption and carbon emissions.

The 2024 expenditure was allocated as follows: €3.12 million in capital expenditures (CapEx) and €197,000 in operational expenditures (OpEx),

with part of these investments linked to projects from previous years. Notably, the efficiency initiatives introduced in 2024 resulted in annual

savings of approximately €550,000. The simple payback period is estimated at around 1.8 years. Moreover, the projects led to a reduction in

energy consumption of approximately 4,900 MWh and in CO2eq emissions of about 660 tons (as per the market-based method).

2024 Energy Improvement Projects in Detail

Iveco Group (Focus Area)


	Total energy reduction in 2024 (MWh)	Project cost(a) (€ thousands)
Lighting efficiency	1,443	1,832
Electric power efficiency systems	132	463
Renewable energy systems	—	120
Heating systems	474	403
Technological heat systems	2,879	433
Total	4,928	3,251

(a) As the implemented projects extend over multiple years and encompass various workstreams, the total investment value may be subject to adjustments throughout the duration of the

initiative.

Iveco Group has set itself the ambitious goal of achieving net zero carbon by 2040. The strategic sustainability targets included in the

Sustainability Plan (see 1.6 Strategy, Business Model, and Value Chain) and that apply to the scope of the Focus Area are:

▪ to obtain 100% of electricity consumption from renewable sources by year-end 2026

▪ to reduce absolute CO2eq emissions (Scope 1 and 2) by 50% by year-end 2030 (compared to 2019).

In 2024, within the scope of the Focus Area, the Group achieved the following results:

▪ 98.2% in total electricity consumption derived from renewable sources

▪ a 25.2% reduction in absolute CO2eq emissions compared to the 2019 base year.

Regarding the 50% reduction target in CO2eq emissions compared to the 2019 base year, Scope 1 accounts for 60% of the reduction, while

Scope 2 contributes 40%. Each decarbonisation initiative's contribution to reaching the overall target is shown in the following table.


Main emission reduction initiatives and expected outcomes	2019 Base year(a) (tons of CO2 eq)	2030 Target (%)
Building refurbishment		-1%
Energy efficiency systems		-1%
Renewable energy systems		-15%
Management initiatives		-10%
Heat recovery systems		-4%
Building energy management systems (BEMS)		-4%
Electrification of heat production and fuel switching (process & heating)		-15%
GHG emissions – Scope 1 & 2 (Focus Area)	99,926	-50%

(a) The base year was recalculated to align with the ESRS E1 standard by converting data into CO₂ equivalent (CO₂eq) and incorporating the latest emission factors published by the

International Energy Agency (IEA).

In 2024, approximately 1,700 hours of training were provided (mainly by in-house professionals) to more than 2,350 people across different

plants, focusing on proper energy performance monitoring and management, the Group's decarbonisation strategy, and the best and latest

technologies available. Several employee initiatives were introduced to raise energy awareness and promote a more sustainable lifestyle, such as

energy workshops covering a range of topics of interest to the many Iveco Group energy specialists attending from plants worldwide.

Board Report Sustainability Statement 51

3.4.2 Scope 3 emissions actions and targets

Reducing greenhouse gas (GHG) emissions across the entire value chain is a key priority for Iveco Group, with Scope 3 Category 11 emissions –

those generated during the use of sold products – accounting for the largest share of its total emissions. Given the Organisation's role in mobility

and transport, tackling these emissions is essential to its decarbonisation strategy. To this end, the Group has set a CO₂ reduction target for

Category 11 in line with its Strategic Business Plan, considering future product types and volumes. It has also committed to cutting emissions

across its value chain by focusing on purchased goods, services, and logistics.

3.4.2.1 Purchased goods and services and upstream transportation and distribution

Purchased Goods

Suppliers are actively involved in Iveco Group’s mission to reduce the environmental impact of its activities and fight climate change, in line with

its commitments. In fact, to further limit the impact of manufacturing processes and products on the environment, the Supplier Code of Conduct

expressly requires them to optimise their use of resources and minimise their polluting and greenhouse gas (GHG) emissions. It also encourages

them to effectively manage waste treatment and disposal, and to adopt logistics management processes that limit environmental impact. For

these reasons, suppliers are strongly advised to adopt an environmental management system certified according to international standards.

In 2024, Iveco Group continued to monitor and interact with its supplier network through Open-es, the community-based digital platform joined in

2022, so as to increase suppliers' engagement with and awareness of sustainability topics while tracking their sustainability performance. The

Open-es platform is used to monitor environmental aspects in line with the World Economic Forum’s guidelines on policies, activities, and results

related to:

▪ climate change

▪ energy efficiency

▪ biodiversity

▪ water resources

▪ circular economy

▪ plastic recycling.

The suppliers that registered on the platform in 2024 accounted for approximately 89% of the Group’s direct material purchases. The platform is a

valuable tool used by the Organisation both to communicate its priorities and to support suppliers in their sustainability journey. This interactive

ecosystem, combined with ongoing dialogue and collaboration with suppliers, is a means to share experiences and find increasingly innovative

solutions to reduce the environmental footprint of all parties involved.

Iveco Group's commitment to the environment is also reflected in the strategic sustainability target incorporated into the Strategic Business Plan:

to achieve a 30% reduction in absolute CO2 emissions generated by major suppliers of purchased goods, services, and capital goods by year-end

2030 (compared to 2022). For further details on:

▪ process for target definition

▪ how stakeholders have been involved in target setting

▪ target base year and period to which the target applies

▪ target monitoring and progress during the year

please refer to the Sustainability Plan in 1.6 Strategy, Business Model, and Value Chain.

Upstream Transportation and Distribution

In managing logistics processes, Iveco Group continuously seeks sustainable solutions to enhance efficiency and reduce environmental impact.

For this purpose, logistics processes are managed both internally within the value chain, specifically within the Manufacturing, Sales, and

Procurement functions, and externally, by working with partners to optimise the efficiency of logistics flows to reduce their environmental impact.

Sustainable logistics bring time and cost efficiencies, emissions reductions, and improved resource utilisation and packaging management; they

also mitigate indirect impacts on traffic congestion and human health.

Iveco Group's approach to low-carbon logistics focuses on 3 areas:

▪ increasing low-emission transport

▪ adopting intermodal solutions

▪ optimising transport saturation.

(43) The criteria used to measure the significance of the environmental aspects of logistics processes are the size of their impact as well as the Group's ability to manage and mitigate both

the impact and its potential effects on the surrounding environment.

Board Report Sustainability Statement 52

Iveco Group has designed its logistics system to deliver safety, ergonomics, reduced emissions, and uninterrupted transport logistics flows. This

approach ensures the effective management and evaluation of logistics projects in line with defined standards. Moreover, since the active

engagement of suppliers is integral to the efficiency and sustainability of the logistics system, the Group directly involves them in most of its

projects and initiatives, working with them to develop and implement the best solutions to meet the Organisation's environmental impact reduction

targets.

As evidence of its commitment to reducing its logistics impacts, the Group has incorporated a strategic sustainability target into its Strategic

Business Plan: a 7% reduction in kilos of CO2 emissions per ton of goods shipped (inbound, outbound, and spare parts) by year-end 2026

(compared to 2022).

For further details on:

▪ the target definition process

▪ stakeholder involvement in target setting

▪ target base year and applicable period

▪ target monitoring and progress during the year

please refer to the Sustainability Plan in 1.6 Strategy, Business Model, and Value Chain.

The Group continues to put initiatives in place to advance sustainable logistics processes without compromising service quality or profitability, with

a focus on generating positive social impacts. The aim is to reduce the environmental impact of logistics operations by focusing on technologies,

procedures, and activities to optimise the use of transport modes, intermodal flows, and long-haul transport.

The Group promotes the use of road vehicles compliant with the most stringent environmental standards: in Europe, for example, specific

contractual clauses oblige external transport providers to use vehicles compliant with Euro IV standards or higher. Optimising transport capacity is

also key to limiting costs and environmental impact, which is why technical and organisational changes are made to both routes and volumes to

optimise and streamline the entire process.

In order to substantiate the strategic sustainability target the Group has set for logistics and the relevant improvement projects, the Organisation

duly monitors some of the environmental aspects considered most significant(43) for logistics processes. CO2 emissions from logistics are affected

by:

▪ the number of inbound/outbound transport flows

▪ the Organisation's effectiveness at promoting mitigation initiatives among suppliers (e.g., through specific contractual clauses)

▪ emissions reduction initiatives (e.g., the adoption of intermodal solutions and containment of air shipments).

By year-end 2024, the containment initiatives in place had already allowed the Organisation to cut CO 2 emissions by 3.5% compared to the

previous year (in terms of kilos of CO2 emissions per ton of goods shipped).

CO2 Emissions in Logistics Processes(a)

Iveco Group worldwide (tons of CO2eq)


	2024
Inbound	86,500.00
Outbound	54,988.00
Spare parts	21,040.00
Total	162,528.00

(a) For the calculation methodology, see 3.5.2 Gross Scope 1, 2, 3 and Total GHG emissions.

3.4.2.2 Use of sold products

The Group offers a diversified product portfolio, each delivering a very different range of features to perform the very different tasks they were

designed for. Adding to this broad product mix is FPT Industrial, which manufactures industrial powertrains for trucks, buses, agricultural and

construction equipment, boats, and power generators. This diversified offering has played a major role in shaping Iveco Group's decarbonisation

strategy, driving the long-term adoption of a technology-neutral approach. Currently, this approach includes propulsion systems powered by

traditional technologies as well as by natural gas (NG), biofuels, battery-electric solutions, and hydrogen. While the electric vehicle market is

expected to grow in the future, a continued market presence is foreseen for internal combustion engine (ICE) vehicles running on sustainable

biofuels or other non-fossil fuels, including hydrogen. Furthermore, legislative milestones are expected globally for CO2 emissions on the path

towards decarbonised transport. For these reasons, the Organisation continues to invest in ICEs and after-treatment systems to enhance fuel

efficiency, meet regulatory requirements, and maintain a competitive edge.

(44) The target refers to vehicles manufactured in Europe.

Board Report Sustainability Statement 53

In line with its goal of achieving net zero carbon by 2040, Iveco Group has set a vehicle CO2 emissions reduction target for year-end 2030: a 38%

reduction in Scope 3 CO 2 emissions from the use of sold products (44) per vehicle/km (compared to 2022). To reach this target, the Group is

gradually shifting its vehicle sales towards battery electric vehicles (BEVs) and hydrogen-powered vehicles, including fuel cell electric vehicles

(FCEVs), and is aiming for its electric vehicles to account for up to 35% of total sales by 2030. For further details on:

▪ process for target definition

▪ how stakeholders have been involved in target setting

▪ target base year and period to which the target applies

▪ target monitoring and progress during the year

please refer to the Sustainability Plan in 1.6 Strategy, Business Model, and Value Chain.

Internal Combustion Engines

The brand new XC13 engine, installed in the new IVECO S-WAY Model Year 2024, is FPT Industrial's first multifuel, single base engine – an

example of the Brand's Cursor X power source concept, which is multi-power, modular, multi-application, and mindful (i.e., intelligent). For

maximum component standardisation and simple vehicle integration, the base engine comes in multiple versions: diesel, natural gas (also

compatible with biomethane) and, currently under development, hydrogen. Besides delivering world-class performance, the new XC13 engine has

potential as a primary driver in achieving short- and medium-term CO2 emissions targets. Indeed, a truck fitted with an XC13 Diesel engine

generates 10% fewer CO2 emissions (a reduction of 9 tons per year), of which 7% attributable to the engine itself, compared to the same truck

fitted with a C13 Diesel engine (Model Year 2022). The new XC13 engine will help deliver future CO2 reductions in agricultural and construction

applications as well, making it a major player in the Group's decarbonisation strategy.

FPT Industrial is actively researching second-generation renewable biofuels, in accordance with EN 15940 fuel specifications, with a particular

focus on hydrotreated vegetable oil (HVO), also known as green diesel (or XTL). Since 2020, all of the Brand's engine families have been type-

approved for HVO, and several buses and coaches have already been adapted to run on this fuel to reduce their CO2 emissions. HVO, and XTL

fuels in general, are an effective way to tackle the CO2 emissions of existing fleets, as they are fully compatible with current engine technologies

and fuel distribution infrastructure. Furthermore, the availability of HVO as a neat fuel (i.e., not mixed or diluted with other fuels) is expanding

across Europe, with an increasing number of fuelling stations offering this option. In this regard, Iveco Group signed a letter of intent with energy

company Eni, which now sells HVOlution (a diesel fuel produced entirely from renewable raw materials) at over 600 fuelling stations in Western

Europe. The goal of this collaboration is to support the smooth transition from fossil fuels to renewable alternatives.

FPT Industrial's 6.7L engine, featured in the CROSSWAY intercity coach produced by Brand IVECO BUS, is homologated for biodiesel B100 in

accordance with EN14214, the European standard for biodiesel. This new version of the CROSSWAY is especially well-suited to address the

decarbonisation needs of school and urban transport, given B100's ability to cut CO2 emissions by almost 60% across the well-to-wheel cycle

compared to traditional diesel. The first B100-compatible CROSSWAY units were delivered and registered mid-2024. The Brand is also exploring

a retrofit protocol for its current CROSSWAY fleet equipped with the Tector 6.7 Euro VI step E engine.

For ICEs, biomethane remains one of the best alternatives to diesel over the medium term. All of the Organisation's currently available NG

engines are 100% biomethane-compatible, the many benefits of which include:

▪ full compatibility with existing natural gas (NG) technology

▪ fully renewable fuel

▪ near-zero well-to-wheel CO2 emissions – or even negative emissions (up to 130% fewer compared to diesel) if sourced from manure

▪ alignment with circular economy principles.

With over 100,000 units sold to date, FPT Industrial has the largest NG engine portfolio on the market and is a leader in NG engine sales in

Europe. Furthermore, its N67 NG is the only medium-duty NG engine on the European market, delivering up to 10% fewer CO 2 emissions

compared to the diesel version. It is featured in the IVECO Eurocargo truck Model Year 2024, and it was also installed on the IVECO BUS GWAY,

the Brand's new gas midibus (effectively replacing the previous diesel version), as part of Iveco Group's portfolio transition to low-carbon transport

solutions. This mid-size NG city bus is destined to become a best-seller in the European Union as it provides a sustainable mobility solution for

narrow streets, mountainous regions, and/or areas of low population density. The N67 NG will soon also power New Holland's LNG tractor

concept. Meanwhile, FPT Industrial is focusing on multipoint stoichiometric combustion for NG engine development, as it is the most cost-effective

solution to meet Euro VI emissions standards, enabling a significant reduction in harmful emissions (e.g., hydrocarbons and NOX) to very low

levels. They are used in commercial vehicles, buses, special vehicles, and agricultural equipment, and are available in the Cursor, NEF, and F1

engine series, offering customers significant cost benefits throughout the entire service life of vehicles.

The use of hydrogen as a fuel for ICEs to achieve zero-carbon emissions does not require major modifications to current vehicle architectures

(whether on- or off-road), and avoids the need for an electric motor to provide power assist. FPT Industrial is currently developing its H2-ICE

technology, designing a new series of engines offering modular, multifuel solutions that are simple to install.

Board Report Sustainability Statement 54

E-Mobility

FPT Industrial has a dedicated cross-functional ePowertrain business line that works exclusively on the development of electric vehicle

technologies. The aim is to meet customer needs with a wide range of tailor-made alternative propulsion and energy storage solutions for every

type of mission, thus strengthening the Brand's positioning in the market as a multi-energy solutions provider.

To date, FPT Industrial's portfolio includes:

▪ eDrivelines (eAxles, central drives, and electric drive units)

▪ energy storage systems (battery packs) and battery management systems (BMS)

▪ fuel-cell electric solutions

▪ hybrid vehicle solutions (electric assist systems).

As regards ePropulsion, of the 3 eDriveline solutions offered by the Brand, eAxles are a premium technological solution to maximise efficiency

and optimise energy usage, with a complete lineup launched in 2024 for vehicles ranging from 3.5 to 49 tons.

As regards energy storage systems, FPT Industrial offers 3 different battery packs: a 37 kWh solution for the IVECO eDaily and for minibuses; a

69 kWh solution for the IVECO BUS range; and a 42 kWh solution for off-road vehicles.

The complete battery lineup is modular (more than one pack can be mounted in parallel). Moreover, NMC pouch cell technology allows the battery

packs' energy density to be maximised, ensuring high levels of safety. The Brand's eBS 37 EVO and eBS 69 batteries come with a Battery

Passport, with traceable information collected via blockchain technology. The eBS 37 EVO is also already compliant with the ECE Regulation 100

Rev.3 on electric vehicle safety. This battery pack can be reused (and thus its lifespan extended) thanks to the Brand's proprietary BMS, while its

end-of-life is managed using a 4R approach – repair, reconditioning, reuse, and recycle. As per several agreements in place with recycling

companies in Europe, battery pack recycling is carried out in compliance with applicable laws. Meanwhile, the Group is exploring a number of

options for battery pack reuse once it has been removed from vehicles at the end of its service life.

The IVECO eDaily – the first-generation, all-electric version of the best-selling IVECO Daily commercial van – offers customers a comprehensive

eMobility ecosystem. This includes high added-value services such as IVECO's electric Mobility Service Provider (eMSP) solution, which provides

access to more than 500,000 public charging points across Europe via an app and/or card, as well as a wide range of charging solutions delivered

directly through Customer Service and in collaboration with strategic energy partners. Other services include the innovative eDaily Smart Routing

and IVECO ON Easy Daily apps. The former interacts with the vehicle to predict vehicle range, required battery level to reach a destination, and

precise time of arrival. The latter, which can be integrated with the IVECO Driver Pal voice assistant, offers vehicle-specific information on

performance (health checks, battery levels, etc.), remote scheduling of battery recharge and preconditioning, navigation to charging stations, and

more.

IVECO BUS launched its new array of electric models, extending its range of zero-emission vehicles and minibuses to meet the demands of

urban, peri-urban, and suburban missions:

▪ the latest generation of the E-WAY range – featuring improved performance to match the most demanding European city missions. By year-

end, nearly 2,000 units had been delivered to public authorities and operators

▪ CROSSWAY ELEC – a new all-electric bus designed for sustainable suburban and peri-urban mobility projects. Launched in December 2024 at

AUTOCAR EXPO as part of its European premiere, it is the Brand's first battery-electric intercity coach for school transport. Its smart design

integrates 4 battery packs (inherited from the Low Entry BEV and further developed in the CNG version). This represents a unique selling point

as it preserves the full luggage compartment below the floor, similar to the conventional diesel version

▪ STREETWAY ELEC – a 12-metre battery-electric city bus designed to meet the specific needs of European and extra-European markets

▪ eDAILY – the latest addition to the DAILY minibus family; this new 100% electric minibus is also available in chassis version.

Fuel Cell Electric Vehicles

One of the solutions in moving closer to decarbonisation is the use of fuel cell electric vehicles (FCEVs), which is one option for long-haul

transport and, in general, for applications requiring a trade-off between longer range, higher payload, and lower refuelling time. This applies to

heavy-duty vehicles, light-duty commercial vehicles, and urban transport vehicles alike.

The IVECO S-eWAY FCEV is a heavy-duty electric truck for the European market with a range of up to 800 kilometres, fitted with Bosch fuel cells

and an FPT Industrial eAxle. This first-generation prototype aims to compete favourably in the toughest heavy-duty missions against well-

established conventional diesel vehicles, despite the latter having powered many generations of vehicles for more than a century. Within the light-

duty range, IVECO and Hyundai unveiled a working prototype of the eDaily FCEV, featuring Hyundai's 90 kW hydrogen fuel cell system and 140

kW e-motor, and a battery pack designed by FPT Industrial. The prototype has a 7.2-ton gross vehicle weight (GVW). It has been tested in

Europe, confirming a range of 400 kilometres, a 3-ton maximum payload, and a refuelling time of 15 minutes or less. While the eDaily BEV

version is designed for short journeys, the eDaily FCEV will be ideal for long-haul, high-payload, and high-energy-demand missions.

(45 )Union des Groupements d'Achats Publics.

Board Report Sustainability Statement 55

2023 saw the launch of the IVECO BUS E-WAY, fitted with Hyundai 90 kW fuel cells and FPT Industrial batteries. IVECO BUS brought its zero-

emission range to the city with its new E-WAY H2 urban bus. This 12-metre low-floor fuel cell bus can accommodate up to 110 passengers, giving

customers the option to choose between two or three access doors. It is fitted with Hyundai's advanced fuel cell system, installed in the rear

compartment and powered by 4 hydrogen tanks on the roof. This is in addition to a 290 kW SIEMENS ELFA 3 electric engine and an FPT

Industrial NMC 69 kWh battery pack, thanks to which the vehicle consumes less hydrogen and achieves a range of up to 450 kilometres (under

normal driving conditions). To optimise hydrogen distribution and maximise efficiency, on board the E-WAY H2 is the Group's new electric Vehicle

Control Platform (eVeCoP) software, developed in-house.

The 2024 market launch was highly successful: indeed, the IVECO BUS E-WAY FCEV was selected by the French procurement agency UGAP(45)

and also secured contracts for the acquisition of hydrogen bus fleets in the French cities of Cannes, Lorient, and La Roche-sur-Yon. As a result,

the production of the first 30 units is scheduled to begin in 2025.

Low-Carbon Products

On the path to decarbonisation, Iveco Group's brands are committed to adopting clean energy solutions and minimising emissions by developing

a full range of more efficient, low-emission products.

In 2024, R&D investments mainly focused on zero-emission vehicles, electrification, multi-fuel energy solutions, and digitalisation, and totalled

€802 million. For more information, see ‘Research and Development’ in this Report.


Type	Product	2024 Total net revenues(a) (%)	2024 Estimated emissions avoided (tons CO2 eq)	Comment
Low-carbon products	IVECO URBANWAY IVECO CROSSWAY IVECO CREALIS (Buses)	23.0	76,953	▪ Mild hybrid vehicle delivering 5-15% fewer CO2 emissions vs the conventional version ▪ Hybridisation available for both CNG and diesel versions
	IVECO E-WAY IVECO CROSSWAY ELEC (Buses)	23.0		▪ Zero-emissions electric buses and coaches
	IVECO eDAILY (Light vehicle)	1.2		▪ Zero-emissions electric Daily
Products that enable third parties to avoid emissions	IVECO WAY range Model Year 2024 (Heavy vehicles)	31.8	309,091	▪ Diesel version (MY24), delivering -10% in CO2 emissions vs its previous version

(a) Refers to the respective segment. For more information on revenues, see the ‘Business Overview’ in this Report.

Data Calculation Methodology

The total reported CO2 emissions were estimated using an internal methodology that accounts for the number of vehicles sold in 2024, the

average CO2 emissions across the entire range, and the average annual mileage for each vehicle category.

Emissions reductions were calculated by:

▪ comparing CO2 emissions from low-carbon products, such as hybrid or electric vehicles, with their equivalent fossil fuel-powered versions

▪ comparing CO2 emissions from new model-year vehicles with the previous, less efficient models.

(46) For the definition of the Group-Wide scope, see 1.1 General Basis for the Preparation of the Sustainability Statement.

(47) For the definition of the Focus Area scope, see 1.1 General Basis for the Preparation of the Sustainability Statement.

(48) Types of energy included: electricity, heat, steam, cooling, natural gas, metallurgical coal, diesel, and other fuels.

(49) Fuel used to test products is not included.

(50) Revenues for the intensity ratio calculation include discontinued operations.

Board Report Sustainability Statement 56

3.5 CLIMATE METRICS

3.5.1 Energy consumption and mix (E1-5)

In 2024, Iveco Group reported a total energy consumption of 1,173,772 MWh within its Group-Wide scope(46). Meanwhile, within the scope of the

Focus Area(47), the Organisation's energy performance – defined as total internal energy consumption(48) divided by hours of production – saw an

improvement, with the key performance indicator (KPI) (49) falling by approximately 16.9% compared to 2019. This was the result of the successful

synergy between the ISO 50001 energy management system and the energy efficiency projects realised. The sustainability target set for the

Focus Area and included in the Sustainability Plan (see 1.6 Strategy, Business Model, and Value Chain) is to achieve a 30% reduction in in total

energy consumption per production unit (MWh/hour of production) by year-end 2030 (compared to 2019).


Energy production mix – Focus Area	2024	2019
Total energy consumption (MWh)	753,985.73	817,768.70
KPI [MWh/Total manufacturing hours]	0.0251	0.0302


Energy production mix – Group-Wide	2024
Fuel consumption from crude oil and petroleum products (MWh)	102,592.57
Fuel consumption from natural gas (MWh)	605,402.23
Consumption of purchased or acquired electricity, heat, steam, and cooling from fossil sources (MWh)	97,120.50
Total fossil energy consumption (MWh)	805,115.30
Share of fossil sources in total energy consumption (%)	69%
Consumption from nuclear sources (MWh)	57,824.85
Share of consumption from nuclear sources in total energy consumption (%)	4.9%
Fuel consumption from renewable sources, including biomass(a) (MWh)	8,136.06
Consumption of purchased or acquired electricity, heat, steam, and cooling from renewable sources (MWh)	352,858.32
Consumption of self-generated non-fuel renewable energy (MWh)	7,661.90
Total renewable energy consumption	368,656.28
Share of renewable sources in total energy consumption (%)	31%
Total energy consumption (MWh)	1,173,771.58

(a) Also comprising industrial and municipal waste of organic origin, biogas, renewable hydrogen, etc.

Iveco Group's energy intensity is calculated based on net revenues and corresponds to 75.54 MWh/€ million(50). The underlying assumption is that

all Iveco Group energy consumption relates to high climate impact sectors.

Focus Area Scope - Data Calculation Methodology

Normalised production unit indexes were defined specifically to track medium- and long-term environmental performance trends. This approach

emphasises performance improvements due to process optimisation rather than fluctuations in production volumes. Performance indicators were

calculated on the total number of manufacturing hours, defined as the hours of presence of hourly employees within the manufacturing scope

required to manufacture a product.

Specific metrics were used to monitor secondary vectors within this scope (e.g., when monitored as a secondary vector, compressed air was

indicated in Nm3 and converted into MWh).

Direct energy refers to the forms of energy that fall within the scope of Iveco Group's operations; it can either be consumed by the Organisation

within its boundaries or exported to other users.

The consumption of fuel used for the following purposes was reported separately: to move unsold, newly manufactured vehicles to the designated

parking lots; to fuel forklifts and internal utility cars; to perform engine tests; and to power generators, motor pumps, pressure washers, and other

devices.

Board Report Sustainability Statement 57

Indirect energy refers to the energy produced outside the scope of Iveco Group's operations, supplied to meet the needs of the Organisation itself

(e.g., electricity, heating, and cooling).

The KPIs for assessing both energy consumption and CO2 eq emissions per production unit do not take into account diesel or LPG consumption

from logistics or product testing.

Group-Wide Scope - Data Calculation Methodology

The reported energy consumption was measured using special metering systems installed on the primary energy carrier meters at plant

entrances. Unlike the Focus Area, consumption within this scope does not refer only to the manufacturing perimeter, and thus to total

manufacturing hours, but to the consumption of the entire Group. It therefore includes the consumption of fuel used: to move unsold, newly

manufactured vehicles to the designated parking lots; to fuel forklifts and internal utility cars; to perform engine tests; and to power generators,

motor pumps, pressure washers, and other devices.

Fleet car fuel consumption was estimated based on average data from a representative sample of vehicles.

Most of the reported data (approximately 91%) was derived from primary sources, covering the scope of the Focus Area as well as some

additional sites. When reporting on the full Group-Wide scope, the remaining data (9%) was based on estimates, using comparable data from

similar monitored sites as a reference and considering factors such as site size and indicators such as the number of employees.

3.5.2 Gross Scope 1, 2, 3 and total GHG emissions (E1-6)

Scope 1 and 2 Emissions

Iveco Group (tons CO 2 eq)


2024
GHG emissions	Group-Wide	Focus Area(a)
Gross Scope 1 GHG emissions	130,791.38	71,214.90
GHG emissions from regulated emission trading schemes (%)	—	—
Gross Scope 2 GHG emissions – location-based	110,434.85	85,774.7
Gross Scope 2 GHG emissions – market-based(b)	38,388.95	3,508.0
Total GHG emissions (Scope 1 & 2) – location-based	241,266.23	156,989.6
Total GHG emissions (Scope 1 & 2) – market-based	169,180.33	74,722.9

(a) Emissions from diesel, LPG, and the car fleet are excluded.

(b) Guarantees of Origin or renewable energy certificates cover 88% of purchased electricity within the Focus Area scope and 70% within the Group-Wide scope.

Board Report Sustainability Statement 58

Scope 3 Emissions

Iveco Group worldwide (tons CO2 eq)


Type of activity	Scope 3 emissions category(a)	2024
Upstream	1 - Purchased goods and services	3,968,982.00
	2 - Capital goods	—
	3 - Fuel- and energy-related activities (not included in Scope 1 or 2)	35,135.88
	4 - Upstream transportation and distribution	162,528.00
	5 - Waste generated in operations	—
	6 - Business travel	4,204.00
	7 - Employee commuting	32,184.35
	8 - Upstream leased assets	—
	Total upstream	4,203,034.23
Downstream	9 - Downstream transportation and distribution	—
	10 - Processing of sold products	—
	11 - Use of sold products	60,357,066.94
	12 - End-of-life treatment of sold products	415,386.00
	13 - Downstream leased assets	—
	14 - Franchises	n/a
	15 - Investments	—
	Total downstream	60,772,452.94
	Total Scope 3 emissions	64,975,487.17

(a) Scope 3 emissions are calculated using both primary and secondary data. In 2024, approximately 50% of Scope 3 emissions were calculated using primary data.

Scope 1,2, and 3 Emissions

Iveco Group worldwide (tons CO2eq)


	2024
GHG emissions	Group-Wide
Gross Scope 1 and 2 GHG emissions – location-based	241,266.23
Gross Scope 1 and 2 GHG emissions – market based	169,180.33
Gross Scope 3 GHG emissions	64,975,487.17
Total GHG emissions – location-based	65,216,753.40
Total GHG emissions – market-based	65,144,667.50
Total GHG emissions – location-based – per net revenue (€ million)(a)	4,196.88
Total GHG emissions – market-based – per net revenue (€ million)(a)	4,192.24

(a) Revenues for the intensity ratio calculation include discontinued operations.

Scope 1 Emissions – Data Calculation Methodology

Regardless of the scope (Group-Wide or Focus Area), Scope 1 emissions are the emissions generated by Iveco Group's consumption of fossil

fuels for internal use and operations, including heating buildings, operating Group equipment, and running generators. As per Greenhouse Gas

Emissions Inventory procedures, the following sources were excluded from the Scope 1 emissions inventory when classified as de minimis, i.e.,

their value was less than or equal to the threshold of 3% of a plant's CO2eq emissions (location-based method):

▪ organic-based technical gas

▪ fugitive emissions, for example generated by fixed appliances or when recharging vehicles' on-board air-conditioning compressors using HFC

or HCFH refrigerants

▪ emissions from internal transport operations carried out using vehicles that are Group-owned or leased from third parties

Board Report Sustainability Statement 59

▪ fire suppression equipment that operates with greenhouse gases (e.g., CO2 eq, HFCs, F-gases)

▪ refrigerants

▪ direct methane (CH4) and nitrous oxide (N2 O) emissions from fuel combustion.

At Iveco Group, the only sources of greenhouse gas (GHG) emissions, besides those deriving from energy consumption, are associated with the

use of hydrofluorocarbon (HFC) compounds with global warming potential (GWP). These are present in equipment for air-conditioning, cooling,

fire suppression, and manufacturing. The potential emissions from these substances (CO2eq) are negligible compared with emissions from energy

production: in fact, with an incidence of 1.3%, they fall outside the reporting scope.

Fleet car emissions were estimated based on average fuel consumption data from a representative sample of vehicles.

Scope 2 Emissions – Data Calculation Methodology

Regardless of the scope (Group-Wide or Focus Area), Scope 2 emissions are indirect emissions associated with the purchase of energy

(electricity, compressed air, and the electricity associated with the consumption of heating and cooling, combined heat and power (CHP), and

district heating). For Scope 2 emissions accounting, Iveco Group applied the dual reporting system of the GHG Protocol Scope 2 Guidance, using

both of its allocation methods across all Group plants:

▪ the location-based method, which reflects the average emissions intensity of the grids on which energy consumption occurs

▪ the market-based method, which reflects emissions from electricity that companies have actively chosen to purchase (or reflects their lack of

choice).

Using the location-based method, global CO2eq emissions from energy consumption were calculated using the specific emission coefficients

(expressed in gCO2eq/kWh) provided by the International Energy Agency (IEA), which are updated every 3 years.

Using the market-based method, the CO2eq emissions from energy consumption were calculated using specific emission coefficients provided by

the following sources:

▪ the Association of Issuing Bodies (AIB) 2024 European Residual Mix – to calculate emissions from electricity consumption at European sites

▪ IEA – to calculate emissions from: electricity consumption at extra-EU sites, global district heating, and cogeneration.

The CO 2eq emissions target set for the Focus Area refers to Scope 2 emissions calculated according to the market-based method.

Scope 3 Category 1 Emissions (from Purchased Goods and Services) – Data Calculation Methodology

In 2024, the calculation methodology for Scope 3 Category 1 emissions (from purchased goods and services) was refined compared to the

previous year to enhance accuracy by integrating product- and geography-specific emission factors. The category's CO₂eq emissions were

calculated using the spend-based method, as outlined in the GHG Protocol Technical Guidance for Calculating Scope 3 Emissions, applying the

following formula:

CO₂eq emissions = Σ (value of purchased goods or services (€) × emission factor per unit of economic value (kg CO₂eq/€)).

The value of purchased goods and services used corresponds to the 2024 Annual Purchase Value (APV), while emission factors were sourced

from Exiobase 3.8.2 – a detailed multi-regional, environmentally extended input-output (EEIO) database covering various economic sectors and

geographies.

The revised methodology improves precision by incorporating multiple dimensions, providing a more accurate representation of geographic

variations in emissions. This is achieved by integrating the country of origin (COO) of purchased goods (i.e., the country where they were

produced), capturing regional energy mixes, thereby reflecting the heterogeneity of Iveco Group’s global procurement. Furthermore, the enhanced

methodology increases the level of granularity by assigning specific emission factors (EFs) based on the material description of each purchased

good. This was accomplished by analysing the procurement database, mapping and associating each material description to a corresponding

NACE code, and linking the latter to the emission categories in the new database – thus resulting in a dual mapping approach that combines both

material description and COO.

The methodology was then refined even further by updating emission factors to account for inflation-adjusted values, applying inflation rates from

the International Monetary Fund (IMF) for each geographic region. This adjustment ensures that Exiobase emission factors, originally referenced

to 2022, are appropriately scaled to 2024. Another significant methodological enhancement involved adjusting emission factors based on

projected decarbonisation trends in the Organisation's sourcing countries, leveraging insights from the International Energy Agency's World

Energy Outlook 2023. This ensures that external factors influencing emissions are duly considered.

The integration of this updated methodology has introduced more precise and tailored emission factors, improving the accuracy of output data by

incorporating country-specific manufacturing emissions and customised EFs based on the characteristics of purchased goods.

Scope 3 Category 2 Emissions (from Capital Goods Covered by the Relevant Target) – Data Calculation Methodology

The CO2 emissions from the Group's capital goods were negligible compared to the total Scope 3 emissions.

(51) Data obtained from EcoTransIT considering average taxable weight per container.

(52) Data obtained from EcoTransIT .

Board Report Sustainability Statement 60

Scope 3 Category 3 Emissions (from Fuel- and Energy-Related Activities not Included in Scope 1 or 2) – Data Calculation Methodology

The activities included in category 3 are:

A. upstream emissions of purchased fuels

B. upstream emissions of purchased electricity

C. transmission and distribution (T&D) losses.

Total emissions were calculated as follows:

CO2eq emissions (location-based) = CO2eq emissions (A) + CO2eq emissions (B) + CO2eq emissions (C).

▪ For activity A, the average-data method (see GHG Protocol, Technical Guidance for Calculating Scope 3 Emissions) was applied as follows:

Upstream CO2 eq emissions of purchased fuels = Σ (fuel consumed (e.g., kWh) × upstream fuel emission factor (kgCO2eq/kWh)) – where

upstream fuel emission factors = DEFRA emission factors.

▪ For activity B, the average-data method (see GHG Protocol, Technical Guidance for Calculating Scope 3 Emissions) was applied as follows:

Upstream CO2eq emissions of purchased electricity = Σ (electricity consumed (e.g., kWh) × fuel-cycle factor (gCO2eq/kWh)) – where

fuel-cycle factor = IEA emission factors.

▪ For activity C, the average-data method (see GHG Protocol, Technical Guidance for Calculating Scope 3 Emissions) was applied as follows:

CO2eq emissions from energy T&D losses = Σ (electricity consumed (kWh) × life cycle T&D emission factor (kgCO2eq/kWh)).

Scope 3 Category 4 Emissions (from Upstream Transportation and Distribution) – Data Calculation Methodology

This category includes inbound, outbound, and spare parts logistics services outsourced by the Group to third parties.

The emissions within this category were measured based on the Greenhouse Gas Protocol (revised edition) for road transport, and on the IFEU

Heidelberg method for sea and rail transport. The CO2 emissions calculation methodology for inbound transportation and distribution varied

depending on the different transportation modes, as described below.

▪ ROAD transport – To calculate the total CO2eq emissions from road transport, the following information was considered: number of shipments,

utilisation capacity (taxable weight of shipment), and distance travelled (in kilometres) for each truck. The first two sets of data were

downloaded from the Supply Chain Management (SCM) information system. The third set of data was obtained by measuring distances

according to a Point Map. The calculation took into consideration a 24-ton average taxable weight for each truck and different region-specific

emission factors (as per the Greenhouse Gas Protocol). Based on the above, the emissions were calculated as follows: (Σ (distance in km per

truck) x taxable weight per shipment per truck x specific emission factors) / average taxable weight of each truck.

▪ RAIL transport – To calculate the emissions from rail transport, the Group considered the following: a 24-ton average taxable weight per

container (since trains are loaded/unloaded from trucks) and the number of trains and containers per route (information received periodically

from the logistics services providers). The CO2eq emissions were calculated as follows: CO2eq emissions per rail route per container(51) x

weight moved.

▪ SEA transport – To calculate the emissions from sea transport, the Group considered the following data downloaded from the Supply Chain

Management (SCM) information system: number of routes and weight transported during the reporting period. The CO2eq emissions were

calculated as follows: CO2eq emissions per sea route per ton(52) x weight moved.

▪ AIR transport – To calculate the emissions from air transport, the Group considered data received from its air service provider and checked by a

dedicated internal team. The CO2eq emissions were calculated as follows: CO2eq emissions factor per air shipment x weight moved (tons).

The CO2eq emissions calculation methodology for outbound and spare parts transportation and distribution varied depending on the different

transportation modes, as described below.

▪ ROAD transport (outbound) – To calculate the emissions from outbound road transport, the following data was considered: the list of sold

vehicles invoiced during the reporting period; the distance travelled (in kilometres) per transport leg according to a Point Map; the average load

factor specific to each product; and different region-specific emission factors. The CO2eq emissions were calculated as follows: Σ (distance in

km per transport leg / average load factor x specific emission factors).

▪ ROAD transport (spare parts) – To calculate the total CO2eq emissions from the transportation of spare parts by road, the Group considered the

following data downloaded from the Supply Chain Management (SCM) information system: total cubic metres per route (total CBM) and

distance travelled (in kilometres) per route according to a Point Map. The calculation also considered a 50-CBM average truck saturation and

different region-specific emission factors. The total CO2eq emissions were calculated as follows: (total CMB / average truck saturation) x

distance x specific emission factors.

(53) Data obtained from EcoTransIT .

(54) See GHG Protocol, Technical Guidance for Calculating Scope 3 Emissions.

(55) See Scope 3 category 11 of the GHG Protocol.

Board Report Sustainability Statement 61

▪ RAIL transport – To calculate the emissions from rail transport, the Group considered the following: a 24-ton average taxable weight per

container (since trains are loaded/unloaded from trucks) and the number of trains and containers per route (information received periodically

from the logistics services providers). The CO2eq emissions were calculated as follows: CO2eq emissions per rail route per container(53) x

weight moved.

▪ SEA transport – These emissions were measured using the same calculation methodology as for rail transport emissions, using data from

logistics service providers on the number of ships per shipment. Depending on the route and the weight transported, CO2eq emissions were

then quantified using the IFEU Heidelberg method (EcoTransIT).

Scope 3 Category 5 Emissions (from Waste Generated in Operations) – Data Calculation Methodology

The CO2eq emissions from waste generated in operations were negligible, comprising less than 0.05% of total Scope 3 emissions.

Scope 3 Category 6 Emissions (from Business Travel) – Data Calculation Methodology

The CO2eq emissions from employees' work related air travel, managed directly through Iveco Group's headquarters, were calculated according

to the GHG Protocol. The CO2eq emissions from train travel (approximately 4,500 journeys in 2024) were estimated based on a representative

sample route.

Scope 3 Category 7 Emissions (from Employee Commuting) – Data Calculation Methodology

The data within this category refers to 100% of Iveco Group employees. It was calculated for the sites in Italy (8 sites employing approximately

13,800 employees, representing approximately 38% of the global employee headcount), and then estimated for the sites outside Italy based on

the average CO2eq emissions per employee at the Italian sites.

Scope 3 Category 8 Emissions (from Upstream Leased Assets) – Data Calculation Methodology

This category includes powered industrial vehicles at plants, on-site trailer tractors, ICT equipment, and leased cars. It should be noted that

leased assets that use electricity fall under the Group's Scope 2 emissions, while those that use natural gas or fossil fuel fall under its Scope 1

emissions.

Scope 3 Category 9 Emissions (from Downstream Transportation and Distribution) – Data Calculation Methodology

The CO2eq emissions associated with distribution to end-customers not included in Category 4 were negligible compared to the total Scope 3

emissions.

Scope 3 Category 10 Emissions (from the Processing of Sold Products) – Data Calculation Methodology

The emissions within this category were calculated applying the average-data method(54) using the formula: CO2eq emissions = Σ (mass of sold

intermediate product (number of engines) × emission factor of processing of sold products (kg CO2eq/engine)). Most of Iveco Group's

products are ready for use when they leave its production sites. A proportion of FPT Industrial engines were supplied to external customers that

sell trucks, buses, and light commercial vehicles and were installed in their products. To determine the CO2eq emissions from the assembly of

these engines, the specific CO2eq emission factors were calculated based on the energy consumption involved in their assembly at Iveco Group's

plants, specifically at the Annonay plant (France) for buses, the Madrid plant (Spain) for trucks, and the Suzzara plant (Italy) for light commercial

vehicles. Based on the assumption that the assembly process is similar for customers, the total emissions were calculated as follows: Σ (specific

emission factors x number of engines sold). The CO2eq emissions from the processing of sold products were negligible, with an incidence of

less than 0.05% of total Scope 3 emissions.

Scope 3 Category 11 Emissions (from the Use of Sold Products) – Data Calculation Methodology

Iveco Group quantifies its CO2 emissions from the use of sold products(55) by applying different calculation methodologies depending on

geographic location.

In Europe, a well-to-wheel approach was used that is the sum of tank-to-wheel and well-to-tank emissions. 2022 was chosen as the base year

for the relevant target following the introduction of new regulatory requirements and the updating of the sales forecasts of the Group’s Strategic

Business Plan. The tank-to-wheel emissions were measured based on the assessment of the Organisation’s entire model range manufactured in

Europe. Since the tank-to-wheel emissions of other greenhouses gases (GHG) at Iveco Group are less than 5% of its CO2 emissions, and since

biogenic CO2 emissions are negligible, they were not included in the calculations. Diesel-, methane-, electric-, and hydrogen-powered versions

were analysed for the following products: light commercial vehicles; medium- and heavy-duty trucks; and coaches and urban/intercity buses.

(56) U.S. Department of Agriculture's Foreign Agricultural Service (FAS); Infineum; Joint Research Centre (JRC); Centre for European Policy Studies (CEPS); International Energy Agency

(IEA); European Biogas Association (EBA); Planète Énergies; U.S. Energy Information Administration (EIA); RTE; UN Environment Programme (UNEP); European Environment Agency

(EEA); Agence de l’Environnement et de la Maîtrise de l’Énergie (ADEME); and Fuel Cells and Hydrogen Joint Undertaking (FCH JU).

(57) Data on the specific carbon prices applied and on percentage coverage is currently being prepared and so not yet available.

Board Report Sustainability Statement 62

Production volumes were based on the Strategic Business Plan and the forecasts for 2030 of the individual Group brands. The average mileage

by vehicle type was calculated according to the indications of the European Commission's latest proposal to amend EU CO2 standards for trucks

and buses. The average mileage for light commercial vehicles, on the other hand, was calculated using the Organisation's telematics and

warranty data. For trucks, fuel consumption and CO2 emissions were calculated using VECTO, an official tool developed by the European

Commission. For buses, they were calculated using an internal tool. For light commercial vehicles, they were calculated using the CO2 emissions

data of Brand IVECO's fleet of Daily vehicles, type-approved as per the homologation tests of the Worldwide Harmonised Light Vehicles Test

Procedure (WLTP test cycles). Iveco Group’s well-to-tank emissions were measured based on information from accredited sources(56), according

to which a weighted percentage of CO2 emissions was assigned to each fuel type, taking into account fuel extraction, transport, refining, and

distribution. Total annual CO2 emissions were calculated as the well-to-wheel emissions from vehicles sold during the year multiplied by a 10-year

lifetime estimate, determined based on internal data.

In South America, CO2 emissions were calculated according to a well-to-wheel approach, by location and by vehicle type, as follows: CO2eq

emissions = Σ ((number of vehicles manufactured x average annual mileage (km/year)) / average consumption) x emission factor, where:

mileage was based on historical maintenance data and the emission factors were region- and product-specific based on biodiesel percentages,

as per nationally recognised sources. Furthermore, both average consumptions and emission factors varied according to the fuel used (diesel or

biomethane). Total annual CO2 emissions were calculated based on a lifetime estimate of 6 years for buses and of 15 years for light commercial

vehicles and medium- and heavy-duty trucks, both determined based on internal data.

Scope 3 Category 12 Emissions (from the End-of-Life Treatment of Sold Products) – Data Calculation Methodology

The CO2eq emissions from the end-of-life (EoL) treatment of vehicles were estimated by extrapolating sample-based results to the total volume of

vehicles manufactured in Europe. Emissions were evaluated separately for three vehicle categories – light-duty vehicles (LDVs), heavy-duty

vehicles (HDVs), and buses – using the following methodology:

▪ sample-based estimation: the sample vehicles included for each vehicle category were selected based on the availability of respective life cycle

assessment (LCA) studies; these samples were used to estimate emissions from processes such as dismantling, recycling, and disposal,

considering material composition and EoL practices

▪ extrapolation to the total volumes: the emissions per vehicle category, derived from the sample vehicles, were extrapolated to the total number

of vehicles produced in that category

▪ aggregation of results: total emissions were calculated as the sum of estimated emissions from ligth-duty vehicles, heavy-duty vehicles, and

buses, ensuring comprehensive and consistent estimates across different vehicle types.

Scope 3 Category 13 Emissions (from Downstream Leased Assets) – Data Calculation Methodology

Iveco Group's emissions from downstream leased assets were included in category 11, and were measured using the latter's same calculation

methodology and same emission factors.

Scope 3 Category 14 Emissions (from Franchises) – Data Calculation Methodology

The Group does not have franchises.

Scope 3 Category 15 Emissions (from Investments Emissions) – Data Calculation Methodology

Emissions from investments, if any, were considered negligible or included in other categories.

3.5.3 GHG removals and GHG mitigation projects financed through carbon credits (E1-7)

In 2024, Brand FPT Industrial continued to offset the GHG emissions generated by its Turin Testing Centre (Italy), in pursuit of becoming a zero-

impact testing facility. Around 11,000 tons of CO2eq emissions generated by the facility were balanced to zero by supporting specific carbon

offsetting initiatives, aimed at reducing deforestation and degradation and at preserving biodiversity through sustainable forest management

practices, ultimately benefitting local communities. The carbon credits purchased are entirely voluntary and do not contribute to achieving CO₂

reduction targets or the net zero target. Furthermore, all purchased credits fall outside both the upstream and downstream value chain. These

credits are associated with The Envira Amazonia Project – A Tropical Forest Conservation Project in Acre (Brazil).

3.5.4 Internal carbon pricing (E1-8)

The Group is evaluating approaches to extend and improve the application of the Internal Price of Carbon (IPoC) methodology, a strategic

business tool for guiding investments to reduce CO2 emissions. The IPoC allows Iveco Group to classify and prioritise energy saving projects

based on their ability to generate the greatest CO2 emissions reductions in relation to the investment cost sustained by the Organisation(57). This

also enables the cross-fertilisation at global level of the most effective projects in terms of CO 2 reductions based on the specific IPoC of each

geographic region and plant.

(58) Principle 15 of the Rio Declaration on Environment and Development, approved by the United Nations in 1992.

(59) Ozone-depleting substances (ODS) are potentially harmful substances that contribute to the depletion of the ozone layer. The most significant and harmful are chlorofluorocarbons

(CFCs), generally used as refrigerants, solvents, and propellants, and hydrochlorofluorocarbons (HCFCs), used to replace CFCs.

(60) Volatile organic compounds (VOC) include compounds such as hydrocarbons, containing only carbon and hydrogen, as well as compounds also containing oxygen, chlorine or other

elements.

Board Report Sustainability Statement 63

4. POLLUTION OF AIR (E2)

4.1 APPROACH TO THE SUSTAINABILITY MATTER (IRO-1)

The Iveco Group materiality assessment identified Pollution as a material sustainability matter, linked to the ESRS E2 sub-topic ‘Pollution of air’.

The expected short-term impacts related to this sustainability matter were identified as negative and described by stakeholders as follows:

▪ “Air pollutants from manufacturing processes – including volatile organic compounds (VOCs), especially from painting, nitrogen oxides (NOX),

sulphur oxides (SOX), and inorganic particulate matter (PM) – represent a threat to human health and the environment”

▪ “Air pollutants from the use phase of vehicles – including NOX and PM – represent a threat to human health and the environment”.

For more information, see 1.9 Identifying and Assessing Material Impacts, Risks, and Opportunities in this Sustainability Statement.

4.2 POLICIES RELATED TO AIR POLLUTION (E2-1)

4.2.1 Environmental Policy

The Iveco Group Environmental Policy regulates those activities that generate the greatest impact and/or potential risk with regard to the ESRS

E2 sub-topic ‘Pollution of air’, and supports the Group in reaching its sustainability targets and ambitions. Iveco Group considers air pollution to be

of the utmost importance, as the release of air pollutants during vehicle use (e.g., nitrogen oxides (NOX) and particulate matter (PM)) and in

manufacturing processes (e.g., volatile organic compounds (VOCs) – especially from painting – NOX , sulphur oxides (SOX), and inorganic PM)

poses a threat to human health and the environment. Furthermore, failure to comply with relevant regulations on air pollutants can lead to

considerable penalties and reputational damage. The policy outlines Iveco Group's short-, medium-, and long-term commitments to responsibly

managing its environmental aspects (including polluting emissions). It also explicitly reflects the Organisation's belief that efficient resource use

and environmental impact reduction are crucial strategies in creating added value for both itself and the communities in which it operates. Iveco

Group thus anticipates risks that could potentially impact the environment and human health by adopting a precautionary approach when

designing products, overseeing manufacturing processes, defining logistics flows, and managing product end-of-life: namely, the precautionary

principle introduced by the Rio Declaration on Environment and Development (58). This commitment extends to all stages of the upstream and

downstream value chain: purchasing processes, product concept and development, operations, logistics and distribution, sales and after-sales,

remanufacturing, and product end-of-life. The key measures include:

▪ reducing air emissions

▪ adopting an eco-design approach to minimise the environmental impact of vehicles by developing products that deliver industry-leading

performance in terms of fuel efficiency as well as noise and polluting emissions.

Iveco Group also engages and partners with stakeholders to promote environmental care, increase understanding of environmental issues, and

disseminate best practices, involving environmental experts from within and outside the Organisation. The Environmental Policy applies to Iveco

Group N.V. and its subsidiaries, to the directors, officers, and employees of such entities, and to those acting for or on behalf of such entities.

Iveco Group's Board of Directors endorses the policy's principles and oversees its implementation, the executive responsibility for which lies with

the Senior Leadership Team (SLT), tasked with developing appropriate operational procedures and ensuring adequate allocation of resources

and professional expertise. The policy, available on the corporate website, has been shared with all Group employees and senior management

worldwide.

4.3 AIR POLLUTION ACTIONS AND RESOURCES (E2-2)

4.3.1 Our operations

One of Iveco Group's goals is to reduce its air emissions, which is why it applies advanced technologies to manufacturing processes, deemed

critical to meeting its improvement targets. The Group's main air emissions are monitored, and results systematically recorded, using specific

programmes and systems that verify compliance with existing regulations. There are currently no ozone-depleting substances(59) (only found in

certain cooling, air conditioning, and climate control equipment) at any plants falling within the reporting scope.

In terms of volatile organic compound (VOC)(60) emissions, painting has the greatest environmental impact of all manufacturing processes at Iveco

Group. Emissions of nitrogen oxides (NOX), sulphur oxides (SO X), and inorganic particulate matter (PM) from fossil fuel combustion are also

monitored, since these pollutants can impact the climate, ecosystems, and human health.

The Group's approach to air pollution focuses on continuous management and control improvements to manufacturing processes, paired with

targeted changes and upgrades at plant level.

Board Report Sustainability Statement 64

In Europe, to enhance paint application efficiency, the Suzzara plant (Italy) installed 6 new painting robots and renovated a number of its painting

booths. With a total investment of about €6.4 million, the initiative cut annual VOC emissions by approximately 6,100 kilos. Similarly, the plant in

Valladolid (Spain) invested €750,000 to install new painting robots, leading to an annual reduction in VOC emissions of 2,000 kilos. The Madrid

plant (Spain) reduced its consumption of paint and cleaning solvents by grouping colours to cut the number of colour changes and optimise the

sequencing of its skid conveyors. This €120,000 investment led to an annual reduction in paint and solvent consumption, cutting annual VOC

emissions by approximately 770 kilos. In South America, the Sete Lagoas plant (Brazil) optimised the use and recovery of cleaning solvents within

its paint system (so preventing their release into the atmosphere), cutting VOC emissions by approximately 38,400 kilos.

4.3.2 Our products

Iveco Group has a dual strategy for reducing its emissions: one is to develop advanced solutions to minimise pollutants – specifically nitrous

oxides (NOX) and particulate matter (PM) – from conventional fuel combustion, the other is to make its powertrains compatible with renewable

fuels, thereby cutting CO2 emissions.

In terms of minimising air pollutants, FPT Industrial's diesel engines comply with the latest and most stringent international regulations on air

quality, such as the European emission standards Euro 6, Euro VI, and Stage V. The technologies used by FPT Industrial to reduce pollutant

emissions focus on improving both combustion – through the adoption of the most cutting-edge high-pressure injection systems, advanced fluid

dynamics, and exhaust gas recirculation (EGR) – and the after-treatment of exhaust gases using established solutions – such as Selective

Catalyst Reduction (SCR) to comply with NOX limits and Diesel Particulate Filters (DPF) to comply with PM limits.These technologies are

combined using a holistic approach aimed at maximising CO2 emission reductions to fully meet specific regulatory requirements while

safeguarding the environment. FPT Industrial’s SCR technology, first introduced in 2005, has been continually upgraded through the years,

including by leveraging the cross-fertilisation of on-road and off-road applications. This has led to the development and launch of two advanced

systems: HI-eSCR, which optimises combustion and fuel consumption, requires less frequent DPF regeneration, and uses Diesel Exhaust Fluid

(DEF) to cut NOX emissions; and HI-eSCR2, specifically designed for agriculture and construction applications. FPT Industrial's SCR systems are

currently used in on-road, off-road, and power generation applications and feature in more than 75% of the diesel engines produced by the Brand

as at year-end 2024.

Regarding carbon-free fuels such as hydrogen, Iveco Group recently presented its latest advancements at the IAA TRANSPORTATION 2024

trade show in Hanover (Germany): namely, the CURSOR 9 H2, a zero CO2 emission solution for heavy-duty transport, and the new N67 Hythane

prototype, powered by a blend of hydrogen and methane. As regards powertrain compatibility with biofuels (see 3.4.2.2 Use of Sold Products),

Iveco Group currently offers a range of solutions fully compatible with biomethane and with EN 15940-compliant XTL diesel fuels, such as

commercial Hydrotreated Vegetable Oils (HVO). FPT Industrial is also conducting trials on engines capable of running on 100% bioethanol (a

renewable biofuel widely used in countries such as Brazil) and on hydrogen, which in Europe is considered to have the potential to be

complementary to both Battery Electric Vehicles (BEV) and Fuel Cell Electric Vehicles (FCEV) in achieving the ultimate goal of Zero Emission

Vehicles (ZEV). Further possibilities lie in the development of multi-fuel engine platforms, designed to run on different types of fuels. For example,

the XCURSOR 13, launched in 2022, is FPT Industrial’s first multi-fuel single base engine designed to run on diesel or methane, with hydrogen

planned for the future. It is compatible with a wide range of market requirements and easily adaptable for different vehicle installations.


Non-fossil energy sources	FPT Industrial engine compatibility	Currently available on the market
Green diesel: hydrogenated vegetable oil (HVO)	▪ F1 series ▪ NEF series ▪ Cursor series ▪ XC13	Yes
Biomethane	▪ F1C NG ▪ NEF 6 NG ▪ Cursor 9 NG ▪ Cursor 13 NG ▪ XC13	Yes
Bioethanol	Under development	Yes, blended with gasoline
Hydrogen	▪ XC13 ▪ C9	Limited
Hythane (blend of H2 and methane)	▪ N67	Limited

(61) The base year (2019) VOC emissions are equal to 38.5 g/m 2 . For information on the rationale for choosing 2019 as the base year, see 1.1 General Basis for the Preparation of the

Sustainability Statement.

Board Report Sustainability Statement 65

The Group further enhances the environmental performance of its active fleets through advanced connectivity. The Iveco Group Control Room

supports customers by collecting and analysing real-time data from the on-board telematic systems of connected vehicles. By monitoring key

parameters, the system provides proactive recommendations for vehicle maintenance, ensuring optimal operation and minimising downtime.

Since 2019, IVECO has substantially upgraded the digital end-to-end infrastructure of its Model Year 2019 light and heavy models. These

enhancements include a more powerful and adaptable telematics box, advanced cybersecurity measures, and a Cloud-based platform that offers

improved reliability and scalability over the earlier on-premises off board system. The Brand's Remote Assistance Service maximises customer

uptime by enabling most operations, such as comprehensive remote checks and authorised software updates, to be completed in just a 10-15

minute pit stop. This eliminates the need for workshop visits, so minimising business disruptions for customers. The service also delivers

advanced fuel optimisation guidance, leveraging sophisticated algorithms that analyse data from connected fleet vehicles to predict fuel

consumption across various missions and conditions. Additionally, it offers actionable recommendations to enhance vehicle performance. These

insights address factors such as driver behaviour, eco-features, tyre pressure, potential vehicle issues affecting fuel economy, and the impact of

trailers.


Control Room	2024
Connected vehicles (number)	130,000
Connected engines(a) (number)	268,000

(a) Including engines assembled in both Iveco Group and third-party connected vehicles.

4.4 AIR POLLUTION TARGETS (E2-3)

4.4.1 Our operations

Iveco Group's voluntary commitment to reducing air pollution is reflected in the sustainability target included in the Sustainability Plan and that

applies to the scope of the Focus Area as defined in 1.1 General Basis for the Preparation of the Sustainability Statement: to achieve a 14%

decrease in volatile organic compound (VOC) emissions per square metre painted at Group plants worldwide (Focus Area) by year-end 2026

(compared to 2019(61) ). In 2024, within the scope of the Focus Area, Iveco Group achieved a 29.4% decrease in VOC emissions (compared to the

2019 base year). For further details on:

▪ the target definition process

▪ stakeholder involvement in target setting

▪ target base year and applicable period

▪ target monitoring and progress during the year

please refer to the Sustainability Plan in 1.6 Strategy, Business Model, and Value Chain.

While specifically focusing on reducing VOCs in paint processes across the Organisation's plants, in line with the Iveco Group Environmental

Policy, the above target also aims to develop new best practices and to identify and address situations or activities at plant level that pose a

potential threat to the environment.

There are no targets set for nitrogen oxides (NOX), sulphur oxides (SOX ), or inorganic particulate matter (PM), although their emissions are

monitored to check compliance with the policy. Levels are calculated based on the annual consumption of fossil fuels in production processes,

using the corresponding emission factors.

4.4.2 Our products

Iveco Group's commitment to reducing air pollution is demonstrated by its ongoing compliance with current regulations such as Euro 6, Euro VI,

and Stage V standards. Additionally, the Group is preparing for the implementation of upcoming regulations, such as the Euro 7 standard: for

light-duty vehicles, this will take effect from November 2026 for new type approvals and from November 2027 for new registrations; for heavy-duty

vehicles, it will apply from May 2028 for new type approvals and May 2029 for new registrations. In this regard, internal targets have been set to

ensure compliance with regulatory requirements.

The planned actions to achieve compliance with Euro 7 standards, as well as the allocated resources, are part of the Organisation's R&D

activities and, as such, are not subject to public disclosure. These activities are in line with the Group's Environmental Policy and aim to cut air

pollutants from all internal combustion engines powering Iveco Group vehicles.

4.5 AIR POLLUTION (E2-4)

4.5.1 Our operations

With regard to quantitative KPIs and metrics, the main data and indicators are provided in the following tables.

(62) Sustainability, Performance, Analysis, Reporting & Compliance.

Board Report Sustainability Statement 66

Volatile Organic Compounds (VOC) Emissions

Iveco Group


	2024
	Group-Wide	Focus Area
Average VOC emissions (g/m2)	27.2	27.2
Total VOC emissions (tons)	691.4	691.3

NOX, SOX, and Dust Emissions

Iveco Group (tons)


	2024
	Group-Wide	Focus Area
Nitrogen oxides (NOX)	287.9	189.2
Sulphur oxides (SOX)	33.2	17.6
Dust	2.9	1.5

Data Calculation Methodology

NOX, SO X, and dust emissions are calculated based on the annual consumption of fossil fuels in production processes, using the corresponding

emission factors.

VOC emissions were calculated based on a mass balance for each plant, taking into account all painting products used in the painting cycles.

Most of the reported data on NOX, SOX, and dust emissions (approximately 92 %) was derived from primary sources, covering the scope of the

Focus Area as well as some additional sites. When reporting on the full Group-Wide scope, the remaining data (8%) was based on estimates,

using comparable data from similar monitored sites as a reference and considering factors such as site size and indicators such as the number of

employees.

The Group's VOC emissions are generated exclusively by its manufacturing sites, and all of the relevant data was collected from primary sources.

Normalised production unit indexes were defined to track medium- and long-term environmental performance trends. This approach emphasises

performance improvements due to process optimisation rather than fluctuations in production volumes. VOC emissions indicators are calculated

on the total area painted, defined as the total area subjected to coating with paint products, expressed in square metres.

Data on air pollution from Group operations was compiled individually (using SPARC(62) or similar systems) for each site based on their respective

qualitative and quantitative data.

4.5.2 Our products

Vehicle emissions are tested both on the bench and on the road to ensure compliance with type approval regulations in the countries where the

vehicles are sold. Additionally, when required, in-service conformity emission tests using a Portable Emissions Measurement System (PEMS) are

carried out to verify compliance under real-world operating conditions.

(63) Principle 15 of the Rio Declaration on Environment and Development, approved by the United Nations in 1992.

(64) For the complete list of plants, see 1.1 General Basis for the Preparation of the Sustainability Statement.

Board Report Sustainability Statement 67

5. WATER RESOURCES (E3)

5.1 APPROACH TO THE SUSTAINABILITY MATTER (IRO-1)

Iveco Group's materiality assessment identified Water as a material sustainability matter, linked to the ESRS E3 sub-topic ‘Water’ and its sub-sub-

topics ‘Water consumption’, ‘Water withdrawals’, and ‘Water discharges’.

The expected short-term impacts of this sustainability matter were found to be negative, summarised by stakeholders as follows:

▪ “The use of water in Iveco Group's production processes, especially in water-stressed areas, contributes to the depletion of natural resources”

▪ “The use of water in Iveco Group's supply chain, especially in water-stressed areas, contributes to the depletion of natural resources”.

For more information, see 1.9 Identifying and Assessing Material Impacts, Risks, and Opportunities in this Sustainability Statement.

5.2 POLICIES RELATED TO WATER (E3-1)

5.2.1 Environmental Policy

The Iveco Group Environmental Policy regulates those activities that generate the greatest impact and/or potential risk with regard to the ESRS

E3 sub-sub-topics ‘Water consumption’, ‘Water withdrawals’, and ‘Water discharges’, and supports the Group in reaching its sustainability targets

and ambitions. Iveco Group considers water consumption, withdrawals, and discharges to be of the utmost importance, as the use of water in its

production processes and supply chain, especially in water-stressed areas, contributes to the depletion of natural resources. The policy outlines

Iveco Group's short-, medium-, and long-term commitments to responsibly managing its environmental aspects (including water and natural

resources). It also explicitly reflects the Organisation's belief that efficient resource use and environmental impact reduction are crucial strategies

in creating added value for both itself and the communities in which it operates. Iveco Group thus anticipates risks that could potentially impact the

environment and human health by applying a precautionary approach when designing products, overseeing manufacturing processes, defining

logistics flows, and managing product end-of-life: namely, the precautionary principle introduced by the Rio Declaration on Environment and

Development(63). This commitment extends to all stages of the upstream and downstream value chain: purchasing processes, product concept

and development, operations, logistics and distribution, sales and after-sales, remanufacturing, and product end-of-life. The key measures

include:

▪ reducing freshwater withdrawals

▪ increasing water recycling, especially in areas where water availability is critical to the surrounding environment and population

▪ minimising the discharge of hazardous substances that could affect water supplies.

Iveco Group also engages and partners with stakeholders to promote environmental care, increase understanding of environmental issues, and

disseminate best practices, involving environmental experts from within and outside the Organisation. The Environmental Policy applies to Iveco

Group N.V. and its subsidiaries, to the directors, officers, and employees of such entities, and to those acting for or on behalf of such entities.

Iveco Group’s Board of Directors endorses the policy's principles and oversees its implementation, the executive responsibility for which lies with

the Senior Leadership Team (SLT), tasked with developing appropriate operational procedures and ensuring adequate allocation of resources

and professional expertise. The policy, available on the corporate website, has been shared with all Group employees and senior management

worldwide.

5.3 WATER ACTIONS AND RESOURCES (E3-2)

From a global perspective, Iveco Group firmly believes that committing to sustainable water management is essential given the growth in

population (and therefore in water demand) worldwide, accompanied as it is by a marked and increasingly widespread scarcity of water

resources. From a business angle, the Group recognises the economic importance of effective water management to counter the potential risks

that water scarcity and other related issues pose for the continuity of both the supply chain and industrial processes. Lastly, from a manufacturing

standpoint, the proper management of water resources is seen as a driver for innovation and improvements within production processes.

Iveco Group draws water mainly for industrial use, specifically for painting, cooling, washing, and machining, and strives to improve water

efficiency across all its processes (regional and environmental conditions permitting). Efforts are made not only at Group level, but also at

individual plant level, through water use assessments to identify opportunities for water efficiency improvements, and through local initiatives to

reduce water requirements and wastewater volumes without compromising quality standards.

The Organisation's approach to water management is to increase the use of recycled water to reduce withdrawals from external sources, thus

improving water independence and the availability of water for local communities. From a broader perspective, given that water is a shared

resource, it is important to collaborate with other stakeholders to improve water management and hence contribute to community health and

wellbeing, especially in water-stressed areas (see 5.3.1 Plants in Water-Stressed areas).

In this regard, all of the Group's 22 ISO 14001 certified plants within the scope of the Focus Area(64) are required to measure their impact on water

resources as an integral part of their environmental assessment and, as a result, have a water management plan in place.

(65) Biochemical oxygen demand (BOD) is the total mass of oxygen used by microorganisms, over a specific time period at 20°C, to decompose (oxidise) the organic material present in a

litre of water (normally expressed in mg/l). The standard test period for BOD is 5 days (BOD5).

(66) Chemical oxygen demand (COD), expressed in milligrams per litre (mg/l), is the quantity of oxygen required for the complete chemical oxidation of organic and inorganic compounds

present in a sample of water.

(67) Total suspended solids (TSS) is the parameter used in water quality management and in water purification to indicate the quantity of solids present in suspension, which can be

separated by vigorous mechanical means such as vacuum filtration or centrifugation of the water sample.

(68) Areas with a baseline water stress that is high (40-80%) or extremely high (>80%), according to the WRI Aqueduct Risk Atlas tool, as at 24 May 2022.

(69) World Resources Institute.

(70) The production unit corresponds to the hour of production. Total manufacturing hours are used to calculate the normalised production unit indicator. For the definition of total

manufacturing hours, see 1.1 General Basis for the Preparation of the Sustainability Statement.

(71) The base year (2019) water withdrawal is equal to 0.108 m 3/hour of production. For information on the rationale for choosing 2019 as the base year, see 1.1 General Basis for the

Preparation of the Sustainability Statement.

(72) The base year (2019) water withdrawal is equal to 0.257 m 3/hour of production.

(73) The base year (2019) water withdrawal is equal to 0.080 m 3/hour of production.

Board Report Sustainability Statement 68

As per Iveco Group's Water Management Guidelines, all sites are required to:

▪ analyse their water consumption and withdrawal/distribution management systems to identify and eliminate waste and/or leaks

▪ identify specific performance indicators and benchmarks for the different manufacturing processes

▪ identify the manufacturing processes with the greatest impact on water resources, and prioritise the necessary interventions

▪ adopt changes and technological innovations to boost water use efficiency, reduce consumption, and improve the quality of wastewater

▪ promote water recirculation within individual manufacturing processes and its reuse in multiple processes

▪ raise staff awareness of responsible water use, both at work and at home.

In 2024, the Group carried out several initiatives to get a detailed picture of water consumption at plant level and reduce its plants' water

footprint, thereby generating annual cost savings. In Europe, the Vysoke Myto plant (Czech Republic) installed a water storage system that

enables the collection of water from its paint shop's wastewater treatment plant (WWTP) and its subsequent reuse in the spray booths' wet

abatement system. The project led to the reuse of 2,400 cubic metres of water. The plants in Madrid and Valladolid (Spain) installed rain sensors

in their automatic irrigation systems to optimise water use for gardening, cutting water withdrawal by approximately 1,000 cubic metres. In South

America, the Sete Lagoas plant (Brazil) installed a collection system that enables the reuse of water discarded from the demineralised water

production unit in the painting pre-treatment process. The project increased annual water recycling at the plant by approximately 10,600 cubic

metres, thus reducing water withdrawal from the municipal supply.

In addition to promoting responsible water withdrawal and introducing ad hoc initiatives, it is extremely important to the Group to safeguard the

water bodies that receive the effluents from its industrial processes – as reflected in its efforts to exceed local wastewater requirements. To this

end, Iveco Group's sites rely on established operating procedures to ensure that the wastewater discharged during their activities meets required

quality standards. Indeed, the 3 wastewater quality indicators applied by the Organisation – biochemical oxygen demand (BOD)(65), chemical

oxygen demand (COD)(66), and total suspended solids (TSS)(67) – showed that its performance in 2024 was fully compliant with applicable local

limits. This result was achieved partly thanks to the adoption of specific wastewater treatment systems (operated either in-house or by specialised

industry partners) that treat the water discharged from the plants; this mainly involves physical and chemical processes and, depending on

wastewater quality, biological treatment.

As regards substances of concern (SoC), these are defined by local law and restricted accordingly, and are therefore considered a priority;

consequently, each plant is required to monitor and treat SoC discharges as per local provisions. It should be noted that the Group's plants do not

use wastewater generated by other organisations, nor do they channel their effluents for reuse by other organisations.

5.3.1 Plants in water-stressed areas

A few Iveco Group plants were classified in 2022 as being located in areas considered sensitive in terms of availability and use of water resources

(so-called water-stressed areas(68)): the two plants in Brescia and the two in Foggia (all in Italy) and the plants in Madrid and Valladolid (Spain).

They were identified using the WRI(69) Aqueduct Water Risk Atlas, a mapping tool recognised by the major organisations in the field that shows

which countries contain water-stressed areas. It is used by Iveco Group each year to pinpoint the plants where specific water conservation and

protection measures are needed. Accordingly, the aforementioned plants focused on reducing their water consumption throughout the year by

implementing targeted measures and initiatives and by setting specific improvement targets.

5.4 WATER TARGETS (E3-3)

Iveco Group's voluntary commitment to reducing water consumption is reflected in the following sustainability targets included in the

Sustainability Plan and that apply within the scope of the Focus Area as defined in 1.1 General Basis for the Preparation of the Sustainability

Statement:

▪ 75% of industrial water to be recycled at Group plants worldwide (Focus Area) by year-end 2026

▪ a 15% reduction in water withdrawal per production unit(70) at Group plants worldwide (Focus Area) by year-end 2026 (compared to 2019(71))

▪ a 10% reduction in water withdrawal per production unit at the Truck plant in Brescia (Italy) by year-end 2026 (compared to 2019(72) )

▪ a 5% reduction in water withdrawal per production unit at the Powertrain plant in Foggia (Italy) by year-end 2026 (compared to 2019(73))

(74) The base year (2019) water withdrawal is equal to 0.036 m 3/hour of production.

(75) The base year (2019) water withdrawal is equal to 0.087 m3/hour of production.

Board Report Sustainability Statement 69

▪ a 22% reduction in water withdrawal per production unit at the plant in Madrid (Spain) by year-end 2026 (compared to 2019(74) )

▪ a 10% reduction in water withdrawal per production unit at the plant in Valladolid (Spain) by year-end 2026 (compared to 2019(75)).

In 2024, within the scope of the Focus Area, the Organisation recycled 74.7% of its industrial water and reduced its total water withdrawal per

production unit by 13.9% at Group plants worldwide (compared to the 2019 base year).

The above water withdrawal targets are linked to water consumption, defined as the amount of water entering the Group's perimeter that is not

discharged back into external water systems or bodies, because the withdrawal reduction measures in place (i.e., improvements to water-

intensive processes and leak detection and repairs) lower the water balance and, consequently, overall consumption.

While specifically focusing on reducing water consumption across the Organisation's manufacturing plants, in line with the Iveco Group

Environmental Policy, the above targets also aim to develop new best practices and to identify and address situations or activities at plant level

that pose a potential threat to the environment. For further details on:

▪ the target definition process

▪ stakeholder involvement in target setting

▪ target base year and applicable period

▪ target monitoring and progress during the year

please refer to the Sustainability Plan in 1.6 Strategy, Business Model, and Value Chain.

5.5 WATER CONSUMPTION (E3-4)

With regard to quantitative KPIs and metrics, the main data and indicators are provided in the following tables.

Water Withdrawal per Production Unit(a)

Iveco Group (m3/hour of production(b))


	2024
	Focus Area
Water withdrawal	0.093

(a) The base year (2019) water withdrawal is equal to 0.108 m 3/hour of production. For information on the rationale for choosing 2019 as the base year, see 1.1 General Basis for the

Preparation of the Sustainability Statement.

(b) Total manufacturing hours are used to calculate the indicator per hour of production. For the definition of total manufacturing hours, see 1.1 General Basis for the Preparation of the

Sustainability Statement.

Water Storage

Iveco Group (thousands of m3)


	2024
	Group-Wide	Focus Area
Water stored	30	28
Changes in water storage	—	—

Water Intensity(a)

Iveco Group (m3/€ million)


	2024
	Group-Wide	Focus Area
Water intensity	147.5	77.8

(a) Water intensity is measured as the total water consumption (expressed in m3) across Iveco Group’s own operations per net revenue (expressed in € million). Revenues for the intensity

ratio calculation include discontinued operations.

Board Report Sustainability Statement 70

Water Withdrawal, Discharge, and Consumption

Iveco Group (thousands of m3)


	2024
	Group-Wide		Focus Area
	All areas	of which in water-stressed areas(a)	Focus Area
Withdrawal
Groundwater	3,523	437	1,906
Third-party water	1,147	343	877
of which municipal water supply	1,147	343	877
Surface water	15	—	10
of which rainwater	5	—	—
Seawater	—	—	—
Produced water	—	—	—
Total water withdrawal	4,685	780(b)	2,793
Discharge
Surface water	409	122	409
Third-party water	1,982	246	1,175
Seawater	—	—	—
Groundwater	2	—	—
Total water discharge	2,393	368	1,584
Consumption
Total water consumption(c)	2,292	412	1,209

(a) Areas with a baseline water stress that is high (40-80%) or extremely high (>80%), according to the WRI Aqueduct Risk Atlas tool, as at 24 May 2022.

(b) The total water withdrawal in water-stressed areas corresponds to 17% of the Group's total water withdrawal.

Water Recycling(a) Index

Iveco Group (thousands of m 3 )


	2024
	Group-Wide	Focus Area
Total water requirement	11,423	9,499
of which covered by recycling	6,738	6,706
of which water withdrawal	4,685	2,793
Water recycling index(b) (%)	59.0	70.6

(a) Water recycling includes water reused.

(b) The recycling index is calculated as a percentage of the total water requirement.

Industrial Water Recycling(a) Index

Iveco Group (thousands of m3)


	2024
	Group-Wide	Focus Area
Industrial water requirement	10,647	8,977
of which covered by recycling	6,738	6,705
of which water withdrawal	3,909	2,272
Industrial water recycling index(b) (%)	63.3	74.7

(a) Industrial water recycling includes industrial water reused.

(b) The industrial water recycling index is calculated as a percentage of the total industrial water requirement.

(76)Sustainability, Performance, Analysis, Reporting & Compliance.

Board Report Sustainability Statement 71

Plants Located in Water-Stressed Areas(a)

Iveco Group worldwide


Plant (Country)	2024 discharge water quality (mg/l)	2019 water withdrawal per production unit (m 3 /hour of production (b))	2024 water withdrawal per production unit (m 3 /hour of production (b))	Reduction target (c) (2026 vs 2019 (d))
Brescia Truck (Italy)	BOD: 20 COD: 15 TSS: 56	0.257	0.225	-10%
Brescia Firefighting (Italy)	BOD: 20 COD: 15 TSS: 56	0.043	0.114	—
Foggia Powertrain (Italy)	BOD: 24 COD: 272 TSS: 85	0.080	0.074	-5%
Foggia Bus (Italy)	BOD: 24 COD: 272 TSS: 85	n/a(e)	0.005	n/a(e)
Madrid (Spain)	BOD: 135 COD: 194 TSS: 112	0.036	0.017	-22%
Valladolid (Spain)	BOD: 49 COD: 91 TSS: 15	0.087	0.078	-10%

(a) Areas with a baseline water stress that is high (40-80%) or extremely high (>80%), according to the WRI Aqueduct Risk Atlas tool, as at 24 May 2022.

(b) Total manufacturing hours are used to calculate the indicator per hour of production. For the definition of total manufacturing hours, see 1.1 General Basis for the Preparation of the

Sustainability Statement.

(c) Refers to water withdrawal per production unit (m3/hour of production). Total manufacturing hours are used to calculate the indicator per hour of production. For the definition of total

manufacturing hours, see 1.1 General Basis for the Preparation of the Sustainability Statement.

(d) For information on the rationale for choosing 2019 as the base year, see 1.1 General Basis for the Preparation of the Sustainability Statement.

(e) The plant started operating in 2023.

Quality of Water Discharges

Iveco Group (milligram/litre)


	2024
	Group-Wide	Focus Area
Biochemical oxygen demand (BOD)	59.4	59.5
Chemical oxygen demand (COD)	179.3	196.1
Total suspended solids (TSS)	60.2	60.5

Data Calculation Methodology

The Group-Wide reporting scope includes all water withdrawals by both manufacturing and non-manufacturing sites. The Focus Area scope

includes solely water withdrawals directly related to the plants' manufacturing processes. This excludes research and development, non-

production-related administrative tasks, after-sales, shipping, activities managed by third parties, and any other operations not directly or indirectly

linked to production. Most of the reported data (approximately 62%) was derived from primary sources, covering the scope of the Focus Area as

well as some additional sites.

When reporting on the full Group-Wide scope, the remaining data (38%) was based on estimates, using comparable data from similar monitored

sites as a reference and considering factors such as site size and indicators such as the number of employees. Normalised production unit

indexes were defined specifically to track medium- and long-term environmental performance trends. This approach emphasises performance

improvements due to process optimisation rather than fluctuations in production volumes. Performance indicators are calculated on the total

number of manufacturing hours, defined as the hours of presence of hourly employees within the manufacturing scope required to manufacture a

product.

Environmental data was compiled individually (using SPARC(76) or similar systems) for each site based on their respective qualitative and

quantitative data.

Iveco Group's wastewater quality indicators – biochemical oxygen demand (BOD), chemical oxygen demand (COD), and total suspended solids

(TSS) – correspond to the average concentrations measured at each plant's effluent discharge point and weighted according to the respective

volumes discharged. For each plant, calculations were based on the highest BOD, COD, and TSS concentrations measured during the year

under normal operating conditions.

(77) Principle 15 of the Rio Declaration on Environment and Development, approved by the United Nations in 1992.

Board Report Sustainability Statement 72

6. RESOURCE USE AND CIRCULAR ECONOMY

(E5)

6.1 APPROACH TO THE SUSTAINABILITY MATTER (IRO-1)

Iveco Group's materiality assessment identified Circular economy as a material sustainability matter, linked to the ESRS E5 sub-topics

‘Resources inflows, including resource use’ and ‘Waste’. The expected short-term impacts of this sustainability matter were identified as negative

and described by stakeholders as follows:

▪ for ‘Resources inflows, including resource use’: “The use of products made of virgin materials (e.g., steel, aluminium) following a linear product

design contributes to the depletion of natural resources”

▪ for ‘Waste’: “The production of waste in Iveco Group's operations represents a threat to human health and the environment”.

For more information, see 1.9 Identifying and Assessing Material Impacts, Risks, and Opportunities in this Sustainability Statement.

6.2 POLICIES RELATED TO RESOURCE USE AND CIRCULAR ECONOMY (E5-1)

6.2.1 Environmental Policy

The Iveco Group Environmental Policy regulates those activities that generate the greatest impact and/or potential risk with regard to the ESRS

E5 sub-topics ‘Resources inflows, including resource use’ and ‘Waste’, and supports the Group in reaching its sustainability targets and

ambitions. Iveco Group considers resource inflows, resource use, and waste to be of the utmost importance, as manufacturing products from

virgin materials (e.g., steel, aluminium) according to a linear product design contributes to the depletion of natural resources, while the production

of waste in Group operations poses a threat to human health and the environment. Furthermore, supply shortages of key components/raw

materials or semi-finished products can lead to potential manufacturing disruptions. The policy outlines Iveco Group's short-, medium-, and long-

term commitments to responsibly managing its environmental aspects (particularly energy, water and natural resources, raw materials, hazardous

substances, polluting emissions, and waste). It also explicitly reflects the Organisation's belief that efficient resource use and environmental

impact reduction are crucial strategies in creating added value for both itself and the communities in which it operates. Iveco Group thus

anticipates risks that could potentially impact the environment and human health by applying a precautionary approach when designing products,

overseeing manufacturing processes, defining logistics flows, and managing product end-of-life: namely, the precautionary principle introduced by

the Rio Declaration on Environment and Development(77). This commitment extends to all stages of the upstream and downstream value chain:

purchasing processes, product concept and development, operations, logistics and distribution, sales and after-sales, remanufacturing, and

product end-of-life. The key measures include:

▪ prioritising renewable and recycled materials to reduce raw material use

▪ reducing hazardous waste generation by prioritising a circular approach to waste management (reduction, reuse, recycling, recovery, waste to

energy conversion), with waste treatment as a last resort

▪ adopting an eco-design approach to minimise the environmental impact of vehicles by developing products that deliver industry-leading

performance in terms of fuel efficiency, noise and polluting emissions, and recoverability rates.

Iveco Group also engages and partners with stakeholders to promote environmental care, increase understanding of environmental issues, and

disseminate best practices, involving environmental experts from within and outside the Organisation. The Environmental Policy applies to Iveco

Group N.V. and its subsidiaries, to the directors, officers, and employees of such entities, and to those acting for or on behalf of such entities.

Iveco Group's Board of Directors endorses the policy's principles and oversees its implementation, the executive responsibility for which lies with

the Senior Leadership Team (SLT), tasked with developing appropriate operational procedures and ensuring adequate allocation of resources

and professional expertise. The policy, available on the corporate website, has been shared with all Group employees and senior management

worldwide.

(78) Registration, Evaluation, Authorisation, and Restriction of Chemicals.

(79) Persistent Organic Pollutants.

(80) Restriction of Hazardous Substances.

Board Report Sustainability Statement 73

6.3 RESOURCE INFLOW

6.3.1 Resource inflow actions, targets, and metrics (E5-2, E5-3, E5-4)

Materials

One of the most challenging aspects of Iveco Group's business is establishing and adopting adequate sustainability (i.e., eco-design) criteria to

evaluate a product's impact at each stage of its life cycle, from conception and component sourcing to production, use, and end of life. The

Group's voluntary commitment to managing resource inflows (including resource use) is reflected in the strategic sustainability target included in

the Sustainability Plan and that applies to the scope of the Focus Area as defined in 1.1 General Basis for the Preparation of the Sustainability

Statement: to ensure that 100% of new products are developed using sustainability and/or recyclability design criteria by year-end 2026. For

further details on:

▪ the target definition process

▪ stakeholder involvement in target setting

▪ target base year and applicable period

▪ target monitoring and progress during the year

please refer to the Sustainability Plan in 1.6 Strategy, Business Model, and Value Chain.

Although the Group does not always purchase raw materials directly (with the exception of steel used for direct processing), it constantly monitors

their overall consumption and general price trends. When designing components for new products (which is done in close collaboration with

suppliers), precedence is given to the use of easily recyclable materials. In 2024, the main raw materials used in semi-finished goods purchased

by the Group were steel and cast iron (including scrap), plastics and resins, rubber, and other miscellaneous materials (including high-voltage

battery materials such as lithium, nickel, and cobalt).

New product development activities place great emphasis on the selection of materials for various components. Therefore, to ensure full

traceability of raw materials across its product portfolio, the Group has implemented the International Material Data System (IMDS) throughout its

entire manufacturing process. This online platform enables suppliers to upload detailed information on the materials and substances used in each

of their components, including the quantity of recycled plastic and biopolymers, the origin of each of these (whether from production waste or end-

of-life products), and the type of recycling employed (mechanical or chemical). The IMDS also allows the monitoring of compliance with: EU

REACH(78) Regulation No. 1907/2006 and POP(79) Regulation No. 2019/1021 for vehicles and components; EU RoHS(80) Directive No. 2011/65 for

marine engines and generators; and Directive 2005/64/EC for vehicle reuse, recycling, and recovery.

Board Report Sustainability Statement 74

2024 Main Materials Used

Iveco Group worldwide


Technical raw materials	Thousand tons	of which recycled (%)	of which certified / sustainably sourced (%)
Steel	521.2	0.36	n/a(a)
Iron	313.7	5.79	n/a(a)
Plastics	60.0	0.11	n/a(a)
Aluminium	41.3	2.78	n/a(a)
Cobalt	0.1	—	n/a(a)
Copper	6.2	1.16	n/a(a)
Nickel	1.5	—	n/a(a)
Lithium	0.3	—	n/a(a)
Fluids	11.7	—	n/a(a)
Total	956
Biological raw materials(b)
Rubber(c) (natural and synthetic contents)	38.3	n/a(a)	n/a(a)
Paper(d) (office use)	0.2	n/a(a)	74
Total	38.5

(a) Not available.

(b) Biofuels are not relevant for the manufacturing of Group products.

(d) Forest Stewardship Council (FSC®) certified.

Data Calculation Methodology

Data related to raw materials was calculated based on sourcing category management analysis, ensuring a structured assessment aligned with

procurement strategies and supply chain structures. For recycled content, estimates were derived from IMDS data samples for vehicles produced

in Europe, reflecting the respective material compositions reported.

Packaging

It is important for customers using Iveco Group products in their work to find spare parts as quickly as possible at their dealership workshops. The

Group's dynamic logistics and assistance teams work hard to deliver the highest quality standards and technology, ensuring the prompt

availability and delivery of parts, and the best solutions to any issues, through its global network of 17 parts warehouses. Iveco Group then works

in partnership with selected suppliers to provide dealers with the right combination of such services, parts, and solutions, so as to best support

them in increasing customer satisfaction and loyalty. The Group boasts around 400,000 items in stock: a complete range of new, used, and

remanufactured parts, accessories, attachments, and telematics solutions that ensure all its brands' current and past models deliver value and

performance over the long term. All spare parts are individually packaged in brown, eco-friendly cardboard that is Forest Stewardship Council

(FSC® ) certified, free of glossy paper, and made using a single ink colour – features that make packaging far easier to recycle. Moreover, at the

San Mauro Torinese logistics hub (Italy), all cardboard boxes used to ship spare parts are also FSC®-c ertified.

To streamline its parts packaging processes, Iveco Group has implemented an advanced eco-management system to reduce the use, and hence

the environmental impact, of packaging. The entire parts shipping operation was analysed, focusing on the two main processes that take place at

the Group's warehouses: the receipt and storage of parts from suppliers, and the selection and packing of parts for shipment to the service

network. Normally, when a shipment is received, its packaging (almost always cardboard) must somehow be disposed of. Thanks to shredding

machines installed at the warehouses under this project, cardboard packaging can now be reused rather than discarded. Indeed, shredded into

perforated strips, it is being used in place of plastic as a packing filler, protecting and separating the individual packages to be shipped to the

service network. Based on estimates, the shredding machines at the warehouses in Turin (Italy) alone would allow the Organisation to recover

1,240 tons of cardboard per year for reuse (with the perforated strips totalling about 2,455 kilometres in length), therefore cutting annual plastic

packaging consumption. Besides reducing packaging, the project has provided opportunities to explore new optimisation strategies, such as

saturating box capacity to save space and minimise costs, in line with best practices adopted across all Group warehouses globally.

In 2024, the measures in place cut Iveco Group's plastic consumption by 15 tons and its corresponding CO2 emissions by approximately 90 tons

compared to the previous year. Building on this result, the target set for year-end 2025 is to reduce CO2 emissions by 150 tons compared to 2024.

(81) The production unit corresponds to the hour of production. Total manufacturing hours are used to calculate the normalised production unit indicator. For the definition of total

manufacturing hours, see 1.1 General Basis for the Preparation of the Sustainability Statement.

(82) The base year (2019) waste generated is equal to 2.66 kg/hour of production. For information on the rationale for choosing 2019 as the base year, see 1.1 General Basis for the

Preparation of the Sustainability Statement.

(83) The production unit corresponds to the hour of production. Total manufacturing hours are used to calculate the normalised production unit indicator. For the definition of total

manufacturing hours, see 1.1 General Basis for the Preparation of the Sustainability Statement.

(84) The base year (2019) hazardous waste generated is equal to 0.23 kg/hour of production. For information on the rationale for choosing 2019 as the base year, see 1.1 General Basis for

the Preparation of the Sustainability Statement.

Board Report Sustainability Statement 75

2024 Main Materials Used for Parts Packaging

Iveco Group worldwide


Biological raw materials	Thousand tons	of which recycled (%)	of which certified / sustainably sourced (%)
Cardboard	0.56	46.0	—
Wood	10.43	—	19
Total	10.99

6.4 RESOURCE OUTFLOW

6.4.1 Waste actions, targets, and metrics (E5-2, E5-3, E5-5)

Iveco Group works to optimise manufacturing processes and operations across its plants not only to enhance its end products, but also to

improve waste management. This means reducing the generation of both hazardous and non-hazardous waste while increasing recovery, two

key aspects of the Group's Environmental Policy. The manufacturing processes at the plants normally involve numerous raw materials – used in

metals, plastics, chemical products, and components, for example – each with their own packaging and each generating actual and potential

waste-related impacts. The same applies to most manufacturing activities, such as assembly, machining, painting, welding, testing, logistics, etc.

When waste generated by Group activities is managed by third parties, the latter's waste collection and storage operations are inspected and

checked to ensure that waste is handled in line with contractual or legislative obligations. Iveco Group’s commitment to optimising waste

management is shared across all plants, which seek solutions that facilitate waste recovery and minimise material sent to landfill. To this end,

plants analyse their production chains to identify areas where waste management can be improved – particularly seeking solutions that increase

waste recovery and reuse. They also set up action plans and allocate dedicated R&D resources to reduce waste production and limit the

associated risks. The waste management improvement methods adopted, in order of preference, are waste recovery, waste-to-energy

conversion, and waste treatment. In terms of waste disposal, the Group selects appropriate methods either directly or in consultation with waste

disposal contractors.

In 2024, Iveco Group’s plants implemented several waste-reduction initiatives, including circularity measures and recycling programmes

designed to reduce total waste disposal, manage its significant impacts, and work towards zero waste across all operations. The plants in

Cordoba (Argentina) launched circular economy initiatives to optimise waste management by reusing materials recycled by suppliers for

manufacturing purposes. They also began to reuse wood and plastic packaging for internal logistics. With a total investment of about €42,000,

these activities reduced the waste generated by the plants by approximately 110 tons, resulting in annual savings of about €67,000. The plant in

Suzzara (Italy) installed a distiller to recover exhausted solvents from the painting process. This €320,000 investment is expected to cut

hazardous waste by approximately 180 tons annually and generate savings of about €310,000. To reduce hazardous waste generation, the plant

in Valladolid (Spain) replaced the single-use small tanks used for hazardous substances with reusable intermediate bulk containers (IBCs),

thereby preventing the wasteful disposal of the residual chemical products previously discarded with the tanks. The plant also established an

agreement with a supplier to collect the sealant purged by its paint shop, which is then regenerated and returned to the plant for reuse. These

efforts led to a 7-ton reduction in hazardous waste and a decrease in annual costs.

Iveco Group's voluntary commitment to managing resource outflows (including waste) is reflected in the following sustainability targets included in

the Sustainability Plan and that apply to the scope of the Focus Area as defined in 1.1 General Basis for the Preparation of the Sustainability

Statement:

▪ 97.1% of waste to be recovered at Group plants worldwide (Focus Area) by year-end 2026

▪ a 7% reduction in waste generated per production unit(81) at Group plants worldwide (Focus Area) by year-end 2026 (compared to 2019(82))

▪ a 6% reduction in hazardous waste generated per production unit(83) at Group plants worldwide (Focus Area) by year-end 2026 (compared to

2019(84)).

In 2024, Iveco Group achieved the following results within the scope of the Focus Area:

▪ 97.5% of waste recovered at Group plants worldwide

▪ a 14.3% reduction in waste generated per production unit at Group plants worldwide (compared to 2019)

▪ a 17.4% reduction in hazardous waste generated per production unit at Group plants worldwide (compared to 2019).

Board Report Sustainability Statement 76

While specifically focusing on optimising waste management and increasing waste recovery across manufacturing processes, in line with the

Iveco Group Environmental Policy, the above targets also aim to develop new best practices and to identify and address situations or activities at

plant level that pose a potential threat to the environment. For further details on:

▪ the target definition process

▪ stakeholder involvement in target setting

▪ target base year and applicable period

▪ target monitoring and progress during the year

please refer to the Sustainability Plan in 1.6 Strategy, Business Model, and Value Chain.

With regard to quantitative KPIs and metrics, the main data and indicators are provided in the following tables.

Waste Generated, Diverted, and Directed to Disposal

Iveco Group (tons)


	2024
	Group-Wide	Focus Area
Waste generated, by composition
Hazardous waste	8,204	5,608
Non-hazardous waste(a)	83,776	63,031
Total waste generated	91,980	68,639
of which packaging	37,425	30,099
Waste diverted from disposal, by recovery operation
Hazardous waste
Preparation for reuse	—	—
Recycling	5,265	3,614
Other recovery operations	—	—
Total hazardous waste diverted from disposal	5,265	3,614
Non-hazardous waste
Preparation for reuse	—	—
Recycling	73,496	58,078
Other recovery operations	—	—
Total non-hazardous waste diverted from disposal	73,496	58,078
Total waste diverted from disposal	78,761	61,692
Waste directed to disposal, by disposal operation
Hazardous waste
Incineration (with energy recovery)	1,712	1,108
Incineration (without energy recovery)	28	7
Landfill	20	4
Other disposal operations (treatment)	1,179	875
Total hazardous waste directed to disposal	2,939	1,994
Non-hazardous waste
Incineration (with energy recovery)	5,467	4,150
Incineration (without energy recovery)	1,865	40
Landfill	2,415	616
Other disposal operations (treatment)	533	147
Total non-hazardous waste directed to disposal	10,280	4,953
Total waste directed to disposal	13,219	6,947

(a)The Group does not generate radioactive waste.

(85) Sustainability, Performance, Analysis, Reporting & Compliance.

Board Report Sustainability Statement 77

Waste and Hazardous Waste Generated per Production Unit(a)

Iveco Group (kg/hour of production(b))


	2024
	Focus Area
Waste generated	2.28
Hazardous waste generated	0.19

(a) The base year (2019) waste generated is equal to 2.66 kg/hour of production. The base year (2019) hazardous waste generated is equal to 0.23 kg/hour of production. For information

on the rationale for choosing 2019 as the base year, see 1.1 General Basis for the Preparation of the Sustainability Statement.

(b) Total manufacturing hours are used to calculate the indicator per hour of production. For the definition of total manufacturing hours, see 1.1 General Basis for the Preparation of the

Sustainability Statement.

Non-Recycled Waste, Waste Recovered(a), and Waste Sent to Landfill

Iveco Group


	2024
	Group-Wide	Focus Area
Waste recovered (%)	93.4	97.5
Waste recovered (tons)	85,940	66,950
Waste sent to landfill (%)	2.6	0.9
Non-recycled waste (%)	14.4	10.1
Non-recycled waste (tons)	13,219	6,947

(a) Waste recovered is calculated as the sum of waste diverted from disposal and waste incinerated with energy recovery, calculated as a percentage of total waste generated.

Data Calculation Methodology

The main waste generated by Iveco Group's plants includes metal waste from machining processes and packaging waste from logistics (mainly

wood and paper).

The full Group-Wide reporting scope includes all waste generated by both manufacturing and non-manufacturing sites. The Focus Area scope

includes only the industrial waste generated by manufacturing plants, defined as any waste directly or indirectly related to production department

activities, and covers:

▪ waste generated in production departments during normal working cycles

▪ waste that, while not directly associated with manufacturing, is generated as a result of auxiliary or production support activities within the

production department (e.g., maintenance, logistics, clerical, catering, medical room, sanitation, etc.).

The Focus Area reporting scope does not include waste that is not associated with manufacturing, auxiliary, or production support activities within

the production department, nor waste generated as a result of activities outside the normal production cycle.

Most of the reported data (approximately 91%) was derived from primary sources, covering the scope of the Focus Area as well as some

additional sites. When reporting on the full Group-Wide scope, the remaining data (9%) was based on estimates, using comparable data from

similar monitored sites as a reference and considering factors such as site size and indicators such as the number of employees.

Normalised production unit indexes were defined specifically to track medium- and long-term environmental performance trends. This approach

emphasises performance improvements due to process optimisation rather than fluctuations in production volumes. Performance indicators are

calculated on the total number of manufacturing hours, defined as the hours of presence of hourly employees within the manufacturing scope

required to manufacture a product.

Environmental data was compiled individually (using SPARC(85) or similar systems) for each site based on their respective qualitative and

quantitative data.

Board Report Sustainability Statement 78

7. OWN WORKFORCE (S1)

7.1 APPROACH TO THE SUSTAINABILITY MATTER (SBM-2; SBM-3)

Iveco Group recognises that its workforce is the heart of its business and operations. That is why it fosters consistent and meaningful interactions

with its people throughout the year (see 1.7 Stakeholders Viewpoint and Interests), firmly believing that listening to them and ensuring

transparent, continuous feedback is fundamental to creating a healthy and inclusive work environment.

Iveco Group's industry and its business model encompass several categories of workers. Its employees have a diverse range of skills and roles,

reflecting the complexity of Group operations. These span various types of activities – from design and development to production, distribution,

sales, and marketing – engaging a wide variety of professionals. The workforce also includes non-employees, whose contribution is essential to

daily operations. These include agency workers, who are mainly involved in manufacturing, contracted through third-party companies and

coordinated by internal supervisors; and contractors, who provide general services as self-employed workers or on behalf of external companies.

During its double materiality assessment, in order to identify the material impacts and risks most relevant to its people, Iveco Group treated all of

them as part of its workforce.

The potential negative impacts for the Group's workforce are linked to isolated episodes rather than widespread or systemic issues. On the other

hand, the positive impacts tend to be associated with the Group's continuous efforts to enhance workforce wellbeing and satisfaction through

targeted initiatives, such as training, development, and diversity, equity, and inclusion (DEI) programmes, as further described in relevant sections

of this Statement.

Such impacts can affect Iveco Group's performance and positioning, since the potential occurrence of serious injuries is recognised as a

significant risk that could lead to legal and regulatory consequences as well as reputational damage.

So far, the climate transition plan has not led to any material impacts on the workforce. However, as the industry shifts towards electrification,

there is a growing demand for a more specialised skill set. This transition requires additional training, upskilling, and workforce adaptation to

ensure employees are equipped to work with emerging technologies, advanced electrical systems, and sustainable energy solutions.

The procedures involved in manufacturing electric vehicles impact every stage of the production process, with the presence of high voltage (HV)

batteries requiring an integrated approach that spans logistics (storage, transportation, and line feeding), assembly (HV battery installation and

housing), quality checks and testing, reworking, and after-sales services. Moreover, each phase requires specific risk assessments, the

implementation of new technological solutions to mitigate the risks identified, specialised personal protection equipment (PPE) for workers, and

targeted training to ensure those working on electric vehicles are fully qualified. For details on the specific measures implemented by Iveco Group

to ensure safety in e-vehicle production, see 7.10.3 Safety Culture and Actions.

While the full impact of these changes remains to be seen, the Group is implementing strategies to support a smooth and inclusive transition.

The Group monitors its operations through an impact assessment survey, which particularly focuses on respect for human rights, especially child

and forced labour (see 7.14.1 Human Rights Assessment). The 2024 survey did not identify any significant concerns or issues in this regard.

7.2 POLICIES RELATED TO OWN WORKFORCE (S1-1)

Iveco Group's commitment to its employees is stated in its Code of Conduct (see 11.2.1 Code of Conduct), Human Rights Policy, Diversity, Equity

& Inclusion Policy, Health and Safety Policy, and Data Privacy Policy. These policies apply to the entire Iveco Group workforce.

7.2.1 Human Rights Policy

Iveco Group works hard to create long-term sustainable value for all its stakeholders, an objective that it believes cannot be achieved without

respect for fundamental human rights. The Human Rights Policy supports Iveco Group in reaching its sustainability targets and ambitions, and

regulates those activities that generate the greatest impact and/or potential risk with regard to the following ESRS S1 sub-topics and sub-sub-

topics:

▪ ‘Working conditions’ (including ‘Secure employment’, ‘Working time’, ‘Adequate wages’, ‘Social dialogue’, ‘Freedom of association’, ‘Collective

bargaining’, and ‘Health and safety’)

▪ ‘Equal treatment and opportunities for all' (including ‘Measures against violence and harassment in the workplace’)

▪ ‘Other work-related rights’ (including ‘Child labour’ and ‘Forced labour’).

Iveco Group considers human rights to be of the utmost importance, as the improper application of labour law and/or management of labour

relations compromises the Group's ability to respond to employees' needs, ensure favourable working conditions, and enhance their wellbeing

and satisfaction levels, while fundamental labour rights violations threaten employees' access to basic life necessities and freedoms (such as

education and livelihood, among others). The Group's Human Rights Policy focuses on 8 main priorities:

▪ no child labour

▪ no forced labour, human trafficking, or any form of slavery

▪ working conditions

Board Report Sustainability Statement 79

▪ no harassment

▪ no discrimination

▪ no retaliation

▪ freedom of association and collective bargaining

▪ occupational health and safety.

Iveco Group will not establish or continue a relationship with any counterpart that refuses to respect the principles of its Code of Conduct, which

explicitly endorses the protection of human rights. The human rights principles included in the policy are consistent with the spirit and intent of the

United Nations' (UN) Universal Declaration of Human Rights, the OECD Guidelines for Multinational Enterprises, and the relevant Declaration on

Fundamental Principles and Rights at Work of the International Labour Organization (ILO). The policy also outlines Iveco Group's commitment to

preventing human trafficking and slavery across its supply chain in compliance with the California Transparency in Supply Chains Act, the Human

Trafficking Prevention Act, the UK Modern Slavery Act 2015, and similar laws.

Iveco Group manages the risks associated with human rights violations through its Enterprise Risk Management (ERM) system, applying a

methodology that defines risk as any event that could affect the Group's ability to meet its objectives. This approach enables it to identify and

evaluate risks in a timely manner, and to take action to mitigate or, where possible, eliminate them. The Group also conducts detailed human and

labour rights risk assessments when acquiring significant new businesses, operations, or projects, maintaining an averse risk appetite level for

human rights violations within the ERM system's Risk Appetite Framework. These assessments are typically conducted as part of the due

diligence process and often with the assistance of external third-party law firms or advisors. The Human Rights Policy applies to Iveco Group N.V.

and its subsidiaries, to the directors, officers and employees of such entities, to those acting for or on behalf of such entities, and to all parties with

which the Group conducts business, including but not limited to suppliers, service providers, sales representatives, agents, consultants, dealers,

distributors, importers, resellers, and joint venture partners. While it is the responsibility of all persons covered by the policy to ensure respect for

human rights, the Senior Leadership Team (SLT) retains executive oversight and responsibility for implementation. At Group level, the Board of

Directors oversees the policy's implementation and is responsible for ensuring adherence to the commitments therein, while Group managers are

responsible for overseeing its application at local level. The Group is continually evolving to build a sustainable society through growth, innovation,

and highly engaged people. This requires a well-defined strategy, a purpose, and values, with engagement serving as the unifying force driving

everyone towards shared objectives. When discrimination is identified, grievance procedures to address complaints, manage appeals, and

provide recourse for employees are handled through the Compliance Helpline, available to all Iveco Group employees, customers, suppliers, and

other third parties to report potential violations of applicable laws, the Code of Conduct, or corporate policies. The policy is available on the

corporate website in 7 languages (Czech, English, French, German, Italian, Portuguese, and Spanish).

7.2.2 Health and Safety Policy

The Iveco Group Health and Safety Policy regulates those activities that generate the greatest impact and/or potential risk with regard to the

ESRS S1 sub-sub-topic ‘Health and safety’, and supports the Group in reaching its sustainability targets and ambitions. Iveco Group prioritises

health and safety, recognising that failure to comply with safety standards can lead to critical incidents, injuries, or work-related ill health impacting

employees, and that any injuries, long-term disabilities, or fatalities may also have legal, regulatory, and reputational consequences. The Health

and Safety Policy stipulates preventive measures at both individual and collective levels to minimise the potential risk of injury in the workplace.

The Group ensures optimal working conditions by applying industrial hygiene and ergonomics principles to its organisational and operational

processes, and by adopting the highest health and safety standards (even in countries with less stringent regulations), believing this to be the best

way to achieve excellence. Safety is a priority across Iveco Group, as evidenced by the compliance of its management systems with the ISO

45001 international standard. The Group uses consolidated monitoring and reporting systems – such as the SPARC system – to track health and

safety performance, measure the effectiveness of actions taken to achieve targets, and plan new improvement initiatives, all through the

management of appropriate key performance indicators (KPIs). The Group involves all employees and their representatives in the development,

implementation, and evaluation of the occupational health and safety management system by:

▪ arranging periodic meetings

▪ consulting with them to identify hazards, assess risks, define controls and preventive measures, and analyse incidents (presenting any such

items at the above-mentioned meetings)

▪ engaging them in the development and revision of occupational health and safety objectives and policies

▪ collecting their feedback on the preventive measures adopted, on the organisation of the occupational health and safety management system,

and on working methods and procedures.

The Health and Safety Policy applies to Iveco Group N.V. and its subsidiaries, to the directors, officers, and employees of such entities, and to

those acting for or on behalf of such entities. Iveco Group's Board of Directors endorses the principles of this policy and oversees its

implementation, the responsibility for which lies with the Senior Leadership Team (SLT), tasked with developing appropriate operational

procedures and ensuring adequate allocation of resources and professional expertise. The policy is available on the corporate website in 7

languages (Czech, English, French, German, Italian, Portuguese, and Spanish).

Board Report Sustainability Statement 80

7.2.3 Diversity, Equity & Inclusion Policy (DEI Policy)

Among its core values, the Group believes that diverse strengths and an inclusive environment are essential for sustainable long-term value

creation and for building an effective, attractive, and resilient organisation. The Diversity, Equity & Inclusion (DEI) Policy supports the Group in

reaching its sustainability targets and ambitions, and regulates those activities that generate the greatest impact and/or potential risk with regard

to the following ESRS S1 sub-sub-topics: ‘Gender equality and equal pay for work of equal value’, ‘Employment and inclusion of persons with

disabilities’, ‘Measures against violence and harassment in the workplace’, and ‘Diversity’. Iveco Group considers DEI to be of fundamental

importance, as incidents of discrimination and harassment in the workplace, including unfair recruiting and compensation practices, negatively

affect employees, especially those who may be vulnerable and/or marginalised. On the other hand, the development of an inclusive working

environment where people are treated equally improves work-life quality, and allows employees to feel valued and to achieve their professional

potential. As stated in the DEI Policy, the Group does not accept discrimination and/or harassment against employees in any form on the basis of:

ethnicity, race, gender, sexual orientation, personal or social status, health, physical condition, disability, age, nationality, religious or personal

beliefs, political opinion, or other protected status, and all employees are expected to uphold DEI values. Iveco Group is committed to acting

impartially to eliminate all forms of direct and indirect discrimination or undue advantage, while building a culture of mutual respect that values

differences and empowers everyone to achieve their potential while contributing to the Group's overall success. The aim is to build a diverse

workforce and Board of Directors, prioritising merit and diversity while tackling discrimination. Key priorities include nurturing talent, ensuring fair

treatment, and supporting each individual's professional growth, with specific efforts designed to improve gender balance, eliminate pay gaps,

provide accessibility for people with disabilities, and foster an inclusive culture. DEI goals are embedded in the Group's sustainability strategy,

reflecting a commitment to creating a work environment that is respectful, collaborative, and centred on wellbeing. The DEI Policy applies to Iveco

Group N.V. and its subsidiaries, to the directors, officers, and employees of such entities, and to those acting for or on behalf of such entities. In

joint ventures where the Group is a non-controlling shareholder, the aim is to circulate the policy to the other shareholder(s) involved and

encourage them to apply similar standards. The same applies to any third parties interacting with Iveco Group (including customers, suppliers,

and other business partners). Meanwhile, all visitors to Group premises are required to abide by the policy at all times, with access to sites denied

in the event of non-compliance.The Board of Directors is responsible for ensuring adherence to the DEI Policy at a strategic level, monitoring its

outcomes and progress over time, and providing proper disclosure as per applicable regulations. While DEI is a responsibility shared by everyone

within the Group, executive oversight and implementation of the policy rest with the Senior Leadership Team (SLT). An ad hoc DEI Council is in

charge of developing, reviewing and, if necessary, redefining initiatives to reduce inequality, support diversity, and promote inclusion. Employees

who violate the DEI Policy may be subject to disciplinary action, up to and including termination of employment, and may be held personally liable

for their behaviour. The policy, available on the Group website in 7 languages (Czech, English, French, German, Italian, Portuguese, and

Spanish), is accessible to all stakeholders, including suppliers and other business partners. More broadly, the Group actively promotes respect for

DEI through public policy efforts, stakeholder dialogue, advocacy, collaboration, and participation in various forums.

7.2.4 Data Privacy Policy

The Iveco Group Data Privacy Policy regulates those activities that generate the greatest impact and/or potential risk with regard to the ESRS S1

sub-sub-topic ‘Privacy’, and supports the Group in reaching its sustainability targets and ambitions. It outlines the principles for collecting, storing,

and processing personal data as per all applicable laws. These include the principles of: lawfulness, fairness, and transparency; data quality;

purpose limitation; storage limitation; security safeguards; accountability; and privacy by design. The Data Privacy Policy applies to Iveco Group

N.V. and its subsidiaries, to the directors, officers, and employees of such entities, and to those acting for or on behalf of such entities. The Senior

Leadership Team (SLT) is responsible for monitoring compliance with the policy, updating it as necessary, and reporting on progress. The policy

is available on the corporate website in 7 languages (Czech, English, French, German, Italian, Portuguese, and Spanish).

7.3 ADDRESSING NEGATIVE IMPACTS AND EMPLOYEE CONCERNS (S1-3)

Iveco Group's Compliance Helpline is a global reporting tool, available in 15 languages and managed by an independent third party, that

provides employees, customers, suppliers, and other third parties with a dedicated means to report potential violations of applicable laws, the

Code of Conduct, the Supplier Code of Conduct, or corporate policies. Reporting potential violations gives the Group the opportunity to investigate

matters and take corrective action, reducing the risk or potential harm to the employees involved, co-workers, the Group itself, or the communities

in which it operates.

As indicated in Iveco Group's Speak Up Policy and on the corporate website, reports can be submitted in several ways (including anonymously,

where permitted by law):

▪ in person to a manager or other Group representative

▪ through the corporate website's Compliance Helpline section, managed by a third party

▪ through the dedicated app, available for Android and iOS

▪ through dedicated phone lines (calls are directed to a voice mailbox managed by a third party; messages are then transcribed and sent to the

Group anonymously).

Board Report Sustainability Statement 81

If a reported matter is substantiated, the Group enforces appropriate disciplinary action, up to and including termination of employment. To this

end, the Ethics & Compliance Committee has approved specific disciplinary guidelines that clearly outline expectations for appropriate disciplinary

measures and ensure a consistent approach. In 2024, any violations of the Code of Conduct were managed either through appropriate

disciplinary action or through action plans to improve internal control procedures. For more information on reporting violations, see 11.3 Business

Conduct and Corporate Culture in this Sustainability Statement. For details on the protection of individuals against retaliation, refer to 11.2.4 Anti-

Retaliation Policy and 11.2.3 Speak Up Policy.

7.4 CONTEXT AND CULTURE (SBM-2, S1-2)

Iveco Group's people are the driving force behind its strategy and its ability to create and deliver long-term value. It is therefore a priority to

accelerate their professional development, help them grow, and strengthen their leadership capabilities, improving individual performance through

full engagement while ensuring a safe working environment.

To attract and retain talent, it is critical to build and sustain a corporate culture of engagement and inclusion, combined with a willingness to

promote and discuss this culture openly. For this reason, the Group believes in complete transparency when showing people how it does things

and has created an attractive employee value proposition (EVP) as a foundation for its sustainable evolution.

Iveco Group is continually evolving to advance a sustainable society through growth, innovation, and highly engaged people. This requires a clear

strategy, a purpose, and shared values, with engagement serving as the glue that holds everyone together, ensuring all are moving in the same

direction. Indeed, engagement, diversity, and inclusion are the foundations of sustainable development and integral to the Organisation’s culture

and human capital management efforts.

Iveco Group's commitment to its people is stated in its Code of Conduct, Human Rights Policy, and Diversity, Equity & Inclusion Policy. These

documents, approved by the Board of Directors, have been distributed to all employees, and are available on the corporate website and Intranet

portal.

The ultimate responsibility for matters concerning Iveco Group's people lies with the Senior Leadership Team (SLT). From an operational point of

view, the Chief Human Resources Officer, who is also a member of the SLT, is responsible for the management of people (including diversity,

equity, and inclusion, industrial relations, compensation and benefits, training and development, organisation, facilities, wellbeing, etc.).

Health and safety protection in the workplace, on the other hand, is promoted in every area and country of operation by a dedicated organisational

structure (Energy, Environment, Health and Safety – EEHS), established within the scope of the Manufacturing function.

7.5 VOICE: TRANSFORMING OUR CULTURE (SBM-2, S1-2)

As soon as Iveco Group was established in 2022, it wasted no time in embarking on the Voice cultural transformation journey – transformative in

that it is as much a change in culture as in mindset, intended to go beyond corporate archetypes by giving voice to everyone within the

Organisation when it comes to its growth and evolution. The primary focus during that first stage of the journey was hence on engagement, acting

on the principle that such transformation is everyone's responsibility.

The first step in the Voice journey was to build Iveco Group's identity and define its Purpose and Values by listening to everyone in the

Organisation. It was important to engage as many people as possible – internal people first and foremost, as well as customers and partners –

using multiple means to reach them, including the Organisation's first-ever Voice Engagement Survey. This led to the definition of Iveco Group's

Purpose, Values, and Behaviours.

The Organisation also laid the foundations for a culture of continuous feedback, strongly promoting two-way feedback by upskilling people across

Iveco Group and by creating opportunities and role modelling for effective dialogue. Two-way feedback involves asking, giving, and receiving

input from others, holding meaningful conversations, and acting upon it. As a mutual exchange, a focus area was enhancing the skills of

managers, required not only to provide feedback to those under their supervision, but also to seek input on their own performance and areas for

improvement.

2023 marked phase two of the Voice journey. The main goal was to drive it forward, making it more structured and granular so as to deliver

pragmatic solutions and anchor all Group processes to the Purpose and Values identified. As a result, the journey's primary focus in 2023 was on

development and on connecting the dots to ensure that everything linked back to the corporate Purpose and Values; this translated into a wealth

of fully cohesive and consistent programmes and learning initiatives.

2024 saw phase three of the Voice journey, building on the tools and processes already established and following up on commitments made to

deliver a sustained transformation, making it integral to how Iveco Group does business.

The Group continued to focus on its Dialogue & Action sessions, consistently reinforcing the importance of its culture of engagement throughout

its leadership transition.

7.6 PEOPLE SATISFACTION AND ENGAGEMENT (SBM-2, S1-2)

Iveco Group uses people satisfaction and engagement surveys not only to measure the level of employee satisfaction and engagement, but also

to identify improvement opportunities that meet the needs and expectations of the entire Organisation.

(86) Agency personnel are defined as working for, rather than employed by, Iveco Group, and are contracted and paid through an external third-party company. They are coordinated and

overseen by the Group's internal supervisors, and are usually temporary and conduct the same type of activities within the same business scope as Iveco Group employees.

(87) This figure is expressed as full-time equivalent (FTE) and calculated based on total hours worked. Contractors are defined as external companies or freelance/self-employed workers

who have a contract with an Iveco Group company to provide services of interest within the Group perimeter.

Board Report Sustainability Statement 82

The Group also collects the information from exit surveys and/or interviews with departing employees worldwide, so as to gain insights into what

they look for in a new organisation and uncover any potential areas of dissatisfaction. Departing employees are asked to complete a

questionnaire on management, career development, corporate culture, and the work environment. The Human Resources Department

consolidates this data and shares specific Business Unit feedback with the relevant managers, in order to address specific matters of concern

within each area. Similarly, new hires are required to fill out questionnaires after 30 and 210 days of employment, providing valuable feedback on

their first months at the Group.

Since 2022, as part of its Voice cultural transformation programme, Iveco Group has conducted an annual Voice Engagement Survey to

measure and monitor employees' levels of engagement. The survey addresses aspects such as job satisfaction, sense of purpose, clarity of

expectations, and feeling of inclusion. In 2024, it was sent out to 34,923 people in 42 countries, of whom 31,878 responded (a 91% participation

rate), with 70% of employees expressing the highest level of satisfaction.

The survey was also designed to monitor employees' experience of Iveco Group's Values within the workplace, listening and giving voice to the

entire Organisation by employing a bottom-up approach, working from the inside out in line with the overall cultural journey.

Consistent with the cultural transformation strategy of the Group, the Voice Engagement Survey is conducted on an annual basis. Every year,

after filling out the questionnaire, participants are asked to take part in the so-called Dialogue & Action sessions, held at team level across the

Organisation to discuss survey results and to agree and follow up on specific actions for improvement. In 2024, these sessions involved more

than 2,000 teams.

7.7 OWN WORKFORCE IN DETAIL (S1-6, S1-7)

As at 31 December 2024, Iveco Group had 36,046 employees, an increase of 9 from the 36,037 employees at year-end 2023. The change was

mainly attributable to the difference between new hires (approximately 3,000) and departures (approximately 2,700) during the year. A further

decrease of approximately 300 employees was due mainly to changes in the Truck Business Unit's (BU) scope of operations, related to the sale

of distribution and retail operations in Nordic countries, and to the sale of two dealers of property in France, partially offset by the last step of

personnel insourcing from Stellantis, initiated the previous year.

Excluding changes in the scope of operations, the workforce increase compared to year-end 2023 was attributable mainly to its growth: in the Bus

BU, driven by the production and sale of vehicles meeting the energy transition requirements and the demand for sustainable mobility; in the

Defence BU, whose business growth in terms of both turnover and results has led to an upward adjustment in personnel, involving all

departments; in the Truck BU's manufacturing plants, primarily in Brazil and to a lesser extent in Italy, partially offset by a reduced workforce in the

Powertrain BU due to lower production volumes.

In 2024, there were approximately 2,700 departures from the Group, 1.9% of which were collective redundancies following the reorganisation or

rationalisation of operations, in some instances initiated in previous years. Whenever possible, redundancies were managed through social

welfare mechanisms provided for by law, and through social programmes established in collaboration with trade unions and aimed at minimising

the impact on employees. 77% of the collective redundancies and associated economic conditions were managed in line with legal requirements;

21.2% were employment contract terminations by mutual consent, with exit incentives more favourable than required by law; 1.8% were early

terminations of fixed-term contracts.

Temporary hiring takes place in response to a temporary need for personnel. As at 31 December 2024, agency contracts(86) accounted for 3,112

of personnel, in line with the previous year. Most of these were hourly workers within the Manufacturing function. The significant increase in hourly

agency workers in the Bus BU was partially offset by a decrease in the Powertrain BU, both driven by the trend in production volumes. The

reduction in hourly agency workers in the Truck BU was mainly due to the conversion of about 200 agency contracts into permanent employment

contracts. Temporary agency contracts are entered into or renewed according to business needs, as per applicable legislation and collective

labour agreement (CLA) provisions, and are thus ultimately subject to variations based on specific market requirements.

There were also 3,793 contractors(87) throughout the year, providing mainly general services such as canteen work, cleaning, waste management,

and maintenance.

Board Report Sustainability Statement 83

Employee Headcount by Gender

Iveco Group worldwide (number)


Gender	Number of employees (headcount)
Male	28,899
Female	7,147
Other(a)	—
Not reported	—
Total employees	36,046

(a) Gender as specified by the employees themselves.

Employee Headcount in Countries where Iveco Group has at least 50 Employees Representing at least 10% of its Total Number of Employees

Iveco Group worldwide (number)


Country	Number of employees (headcount)
Italy	14,513
Spain	4,224
France	3,914
Czech Republic	3,696

Employees by Contract Type, Broken Down by Gender

Iveco Group worldwide (number)


2024
Female	Male	Other(a)	Not disclosed	Total
Number of employees (headcount)
7,147	28,899	—	—	36,046
Number of permanent employees (headcount)
6,896	28,173	—	—	35,069
Number of temporary employees (headcount)
251	726	—	—	977
Number of non-guaranteed hours employees (headcount)
1	37	—	—	38
Number of full-time employees (headcount)
6,675	28,606	—	—	35,281
Number of part-time employees (headcount)
472	293	—	—	765

(a) Gender as specified by the employees themselves.

Board Report Sustainability Statement 84

Employees by Contract Type, Broken Down by Region

Iveco Group worldwide (number)


2024
Europe	South America	North America	Rest of World	Total
Number of employees (headcount)
30,968	4,010	77	991	36,046
Number of permanent employees (headcount)
30,271	3,737	77	984	35,069
Number of temporary employees (headcount)
697	273	—	7	977
Number of non-guaranteed hours employees (headcount)
38	—	—	—	38
Number of full-time employees (headcount)
30,204	4,010	77	990	35,281
Number of part-time employees (headcount)
764	—	—	1	765

Employee Turnover

Iveco Group worldwide (number)


	2024
Employees at 1 January	36,037
New hires	3,036
Departures	(2,715)
∆ scope of operations	(312)
Employees at 31 December	36,046
Turnover (%)	7.5
of which voluntary turnover (%)	2.7
New hires (%)	8.4

Employee Turnover by Age Group(a)

Iveco Group worldwide (number)


	2024
	Under 30 years	30 to 50 years	Over 50 years
Employees at 1 January	4,192	21,347	10,498
New hires	1,328	1,489	219
Departures	(630)	(1,278)	(807)
∆ age range	(657)	(582)	1,239
∆ scope of operations	(59)	(148)	(105)
Employees at 31 December	4,174	20,828	11,044
Turnover (%)	15.1	6.1	7.3
New hires (%)	31.8	7.1	2.0

(a) Information disclosed according to the KPI calculation methodology defined by the GRI Standards.

(88) Targets are developed and set by the relevant functions in collaboration with other departments and affected stakeholders, with final approval from senior management. Targets are

further shaped by the insights gathered through continuous engagement and dialogue with the workforce and workers' representatives and from their feedback. This ongoing exchange

helps identify key focus areas and ensures target alignment with Group priorities. The responsibility for managing and achieving these targets lies with specific designated functions.

Progress on targets is regularly disclosed through public reporting.

Board Report Sustainability Statement 85

Employee Turnover by Gender(a)

Iveco Group worldwide (number)


	2024
	Male	Female
Employees at 1 January	29,168	6,869
New hires	2,207	829
Departures	(2,169)	(546)
∆ gender	(24)	24
∆ scope of operations	(283)	(29)
Employees at 31 December	28,899	7,147
Turnover (%)	7.5	7.6
New hires (%)	7.6	11.6

(a) Information disclosed according to the KPI calculation methodology defined by the GRI Standards.

7.8 DIVERSITY, EQUITY, AND INCLUSION (S1-4, S1-5, S1-9, S1-12)

Iveco Group implements a series of measures to address the negative and positive material impacts related to diversity, equity, and inclusion

(DEI) identified through the materiality assessment. These measures, outlined below, are designed to prevent, mitigate, and/or remediate the

material negative impacts on the workforce while maximising positive impacts. Where applicable, outcomes are monitored through specific

quantitative KPIs.

In October 2023, the Board of Directors adopted a Policy on Diversity, Equity and Inclusion (DEI Policy), applicable to the Group's Board,

management and entire workforce, acknowledging that DEI is business-critical, and not just a matter of compliance: Iveco Group's stance is that

its people are the foundation that drives its business, offering diverse perspectives and thinking that help it develop as an organisation. People act

as a stimulus for continuous improvement and contribute to the advancement of a more sustainable society. As such, the Group lists contributing

diverse strengths among its core values and considers an inclusive and diverse environment to be beneficial to sustainable long-term value

creation, as the basis of an effective, attractive and resilient organisation. The DEI Policy (to be read and construed in conjunction with the

Organisation's remaining governance documents, namely its Code of Conduct and the Human Rights Policy) is available in seven languages on

the Governance section of the Group's website. Completing the training on this policy is mandatory for all the Organisation's employees.

Provided that the composition of the Company' s Board and workforce at large is based on competence, merit and talent, and the underlying

rationale of the Group's entire remuneration approach is competitive rewarding of performance, in the framework of its overall strategic planning

remit, the Board sets a range of targets addressing relevant DEI aspects with reference to the same Board, the members of the Senior

Leadership Team (SLT) and the overall workforce. These targets (that are short-, medium- or long-term, depending on the aspect to tackle) are

intended to direct decision-making and operations and ensure focus. Their annual re-assessment (and possible fine-tuning) is meant to ensure

ongoing consistency with the Organisation's evolving strategic priorities and actual capacities. The goals (that are listed in full in the DEI Policy)

span from fostering awareness on the topic, to counteracting (unconscious) bias through appropriate training and dialogue, to integrating DEI

elements into the Group's performance, recruitment and talent development processes, whilst working for the progressive elimination of gender

pay gap (that already is within EU Directive thresholds) and pursuing gender balance. With reference to the required setting of gender diversity

targets for the senior management (that the Group identifies in the SLT), according to applicable Dutch law, the Group believes that women and

men should each represent at least one-third of the members of the SLT. This goal is presently achieved (thus the goal here is maintaining this

gender diversity rate while managing retirement and vacancies). In addition, to strengthen the Organisation's DEI efforts and outcomes, a

strategic sustainability target was incorporated into its Strategic Business Plan: to ensure that 30% of office positions overall are held by female

office workers by year-end 2028(88).

Apart from target setting, the Board of Directors is responsible for ensuring adherence to the DEI Policy at strategic level, as well as monitoring its

outcome and progress throughout time and providing proper disclosure.

Fostering a culture of DEI is part of the Group's sustainability priorities. In 2024 Iveco Group's DEI Council (made up of the SLT and a diverse

selection of managers) continued to develop and deliver a range of initiatives to support diversity and promote inclusion, focusing on six key

workstreams: Employer Branding; Talent Mobility, Succession & Hiring; Career Development Programmes; Gender Pay Gap; Wellbeing at Work;

and Structured Awareness Campaign.

Examples of the numerous initiatives are the roll-out of unconscious bias training (Hidden Bias of Good People) to over 11,000 people and the

design and roll-out of inclusive language training to the SLT and key leaders in the Organisation. In addition, the Group initiated various mentoring

programmes affecting over 300 diverse colleagues (between mentors and mentees) to advance the development of its key diverse talent (eg., I-

Talks).

(89) Data collected in Austria, Brazil, China, Czech Republic, France, Germany, Italy, Poland, Romania, Spain, Türkiye, and Ukraine, as well as in 5 additional countries (Indonesia, Russia,

Serbia, Slovakia, and South Korea) where, despite regulations requiring a minimum percentage of employees with disabilities, Iveco Group does not meet the minimum headcount

threshold for these requirements to apply.

Board Report Sustainability Statement 86

Coming to the tools to implement the Group's DEI priorities, within the Human Resources Department, an ad hoc office is responsible for creating

DEI programmes and initiatives and for promoting such a culture at all corporate levels in coordination with the HR heads of each business unit/

function and the Heads of Communication and Sustainability. This ensures that, in every aspect of the employment relationship – be it

recruitment, training, compensation, development, promotion, or relocation – employees are treated based on their ability to meet the

requirements of the job, and all decisions are free from any form of discrimination. The DEI strategy is to integrate the principles and behaviours

into the employee life cycle process to ensure the sustainability of the approach.

Given the Organisation's global presence, there may be differences in legislation among the countries where the Group operates, as well as

different levels of awareness, concern, and ability among employees in applying the principles of non-discrimination. The Code of Conduct and

specific policies ensure that the same standards are applied worldwide. Indeed, as stated in the Code of Conduct itself, Group standards

supersede in jurisdictions where legislation is more lenient.

An assessment to monitor the employment of people with disabilities was carried out in 2024 in 17 countries(89) (where the law requires

companies to employ a minimum percentage of employees with disabilities), covering more than 92% of Group employees worldwide. The

assessment showed that differently abled employees in these countries make up 4% of the global employee headcount. It also showed that

differently abled women account for 19% of the total assessed, while men account for 81%. In all other countries of operation, there is no

legislation establishing minimum quotas for the employment of people with disabilities, although in some cases other forms of protection exist (i.e.,

related to working hours or workplace environments). In these countries, there are objective limitations to reporting the number of differently abled

employees, as the information is sensitive and often subject to data protection legislation. As a result, the Group is only aware of employees'

personal status if they choose to disclose it.

In 2024, the Organisation also carried out an employee nationality assessment at Iveco Group legal entities in 9 countries, covering 84% of

Group employees worldwide, which evidenced that 7.4% of them were of a nationality other than the country assessed. It should be noted that

this percentage remains higher for female employees (8.8%) than for male employees (7.1%). Germany, the USA, and Italy were the countries

where Iveco Group legal entities employed the highest percentage of employees of a nationality other than that of the host country (16% in

Germany, 12% in the USA, and 10% in Italy).

Employees at Top Management Level by Gender

Iveco Group worldwide


	2024
	Male		Female
	(number)	(%)	(number)	(%)
Top management level	121	76.6	37	23.4

Employees by Category by Age

Iveco Group worldwide (number)


	2024
	Under 30 years	30 to 50 years	Over 50 years
Hourly	3,253	13,106	6,990
Salaried	687	2,743	1,433
Professional	232	3,680	1,721
Manager	2	1,299	900
Total	4,174	20,828	11,044

Board Report Sustainability Statement 87

Employees by Category by Age

Iveco Group worldwide (%)


	2024
	Under 30 years	30 to 50 years	Over 50 years
Hourly	14.0	56.1	29.9
Salaried	14.1	56.4	29.5
Professional	4.1	65.3	30.6
Manager	0.1	59.0	40.9
Global	11.6	57.8	30.6

Employee Gender Distribution by Category(a)

Iveco Group worldwide


	2024
	Male		Female
	(number)	(%)	(number)	(%)
Hourly	19,711	84.4	3,638	15.6
Salaried	3,266	67.2	1,597	32.8
Professional	4,267	75.8	1,366	24.2
Manager	1,655	75.2	546	24.8
Total	28,899	80.2	7,147	19.8

(a) Information disclosed according to the KPI calculation methodology defined by the GRI Standards.

Employee Gender Diversity Indicators(a)

Iveco Group worldwide (%)


	2024
Women as a share of total employees	19.8
Women in all management positions	24.8
Women in junior management positions	20.8
Women in top management positions	23.4
Women in management positions in revenue-generating functions	26.2
Women in STEM positions	15.5

(a) Information disclosed according to sustainability rating agency requirements.

Board Report Sustainability Statement 88

Employee Nationality(a)

Iveco Group worldwide (%)


	2024
	Share of employees(b)	Share of management positions(c)
Italian	43.8	66.4
Spanish	13.8	4.0
French	12.5	7.1
Brazilian	10.8	8.2
German	8.4	5.6
Argentinian	2.7	2.2
Chinese	1.4	1.2
Others	6.6	5.3

(a) Information disclosed according to sustainability rating agency requirements.Assessment covering 84% of Iveco Group employees.

(b) As a percentage of total employees.

Data Calculation Methodology

DEI data and information were collected through dedicated IT management and control systems (the SAP HR or ESGeo platforms), where

available, to ensure the reliability of information flows and data accuracy, or through spreadsheets populated directly by the representatives of

each thematic area worldwide and verified by their supervisors.

7.9 COMPENSATION AND BENEFITS (S1-4)

Iveco Group implements a series of measures to address the negative and positive material impacts related to employee compensation and

benefits identified through the materiality assessment.

These measures, outlined below, are designed to prevent, mitigate, and/or remediate the material negative impacts on the workforce while

maximising positive impacts. Where applicable, outcomes are monitored through specific quantitative KPIs.

Iveco Group's approach to compensation is based on equitable criteria to ensure that all employees benefit from an inclusive work environment

and equal opportunities. The Group is committed to offering a base salary that is compliant with local regulations, competitive with the local

market, sustainable from a business perspective, and in line with its corporate achieve and earn philosophy. The compensation strategy includes

various components, providing a comprehensive package that rewards employees for their contribution to the Group's results allowing them to

share in the business success they helped to create.

Base salary, benefits, and short- and long-term incentives are determined by market-driven benchmarks; this ensures that all Iveco Group

employees across different global markets are treated fairly and objectively. The specific criteria for adjustments focus on closing gaps with

respect to market position, giving priority to top performers. Variable compensation, on the other hand, is based on individual employee

contributions, assessed annually through a rigorous evaluation applied consistently to all eligible employees worldwide. Additionally, a formal,

monitored process is in place to ensure the Group's core principles of equity and fairness are applied to compensation levels, annual salary

reviews, and promotions alike, in line with its reward philosophy. Thanks to the combination of the above measures, Iveco Group's overall

compensation approach guarantees equal treatment for all individuals regardless of age, gender, ethnicity, religious belief, disability, sexual

orientation, or other such factors or attributes.

7.9.1 Compensation metrics (S1-5, S1-16)

Recognising the importance of a fair and unbiased approach to pay, Iveco Group is committed to ensuring pay equity as a good business

practice.The Group also acknowledges the possibility of acceptable differences in pay for similar work, provided they are based on fair and

objective criteria such as performance, education, or other measurable job-related characteristics.

Iveco Group upholds and maintains pay equity throughout the organisation by:

▪ reviewing and adjusting pay ranges each year to ensure their compliance with local statutory requirements, which vary by country and reflect

the prevailing local market pay rates for the roles in question

▪ monitoring the starting salaries of new employees to ensure they are fairly aligned with Iveco Group's predefined pay ranges. To this end,

before any employment offer is made, the HR team verifies that the salary being offered falls within such ranges (regardless of the candidate's

salary history), to reduce the likelihood of importing pay inequities from previous employers

▪ monitoring salaries following internal promotions, with the HR team ensuring (as for new hires) that the starting salary for any promotion

complies with local statutory requirements

▪ consistently reviewing and adjusting pay ranges to ensure their continued relevance throughout the year.

(90) This calculation includes all employees, considering the following total remuneration components: base salary (i.e., the sum of guaranteed, short-term, and non-variable cash

compensation); benefits in cash (i.e., the sum of the base salary and cash allowances, bonuses, commissions, cash profit-sharing, and other forms of variable cash payments); benefits

in kind (e.g., cars, private health insurance, life insurance, wellness programmes); and direct remuneration (i.e., the sum of benefits in cash, benefits in kind, and the total fair value of all

annual long-term incentives – for example, stock option awards, restricted stock shares or units, performance stock shares or units, phantom stock shares, stock appreciation rights,

and long-term cash awards).

(91) Calculated for each country as the average male full-time equivalent (FTE) base salary minus the average female FTE base salary, divided by the average male FTE base salary. The

overall figure is a weighted average based on the headcount in each country.

(92) Iveco Group assesses gaps in gender pay equity using multilinear regression. This analysis is performed in the countries of operation with a headcount of 100 or more.

Board Report Sustainability Statement 89

In 2024, the annual total remuneration ratio of Iveco Group's highest paid individual (i.e., the CEO) to the median annual total remuneration for all

employees (excluding the highest-paid individual) was equal to 59.1(90).

For information on the CEO pay ratio disclosure as established by the Dutch Corporate Governance Code, please refer to the ‘Remuneration

Report’ in this Report. Based on the methodology of this disclosure, the CEO pay ratio was 31.5.

Iveco Group is committed to conducting an annual review of base salaries for nearly all employees in most of its countries of operation (around

99% of Group employees worldwide) and to using statistical analysis (specifically multilinear regression) to identify and promptly address any

unexplained gender pay gaps. The gender pay gap is defined as the difference in average pay levels between male and female employees,

expressed as a percentage of the average pay level of male employees. The analysis performed in 2024 revealed a gender pay gap of -3.6%(91).

Iveco Group has prioritised gender pay equity by setting specific targets for gender equality and by achieving third-party certification from EDGE

in November 2024, reflecting the Group's compliance with rigorous standards for diversity, equity, and inclusion (DEI) in the workplace. EDGE

certification is the leading and globally recognised standard for DEI, integrated into key indices and implemented by ESG and DEI think tanks and

thought leaders worldwide.

When analysing its gender pay gap, the Group considered specific variables (such as age, tenure, and position within the Organisation) to identify

factors that could potentially influence pay differences, performing a multilinear regression analysis to establish any pay gap between male and

female employees that was not explained by or attributed to the specific variables. The number of variables used was intentionally limited to those

that statistically demonstrated a meaningful impact on results. The analysis consistently showed that Iveco Group's unexplained pay gap was

within an accepted threshold of +/-5%. Meanwhile, the Group continues to take proactive steps to address pay disparities where they exist, as

part of its broader commitment on rewards and workplace diversity, equality, and inclusion.

Iveco Group's commitment to equal pay is also reflected in the voluntary strategic sustainability target incorporated into its Strategic Business

Plan: to maintain gender pay equity(92) across the Organisation, and have it certified by a third party by year-end 2026 (as mentioned earlier,

certification was achieved in 2024, well ahead of schedule). Targets are developed and set by the relevant functions in collaboration with other

departments and affected stakeholders, with final approval from senior management. Targets are further shaped by the insights gathered through

continuous engagement and dialogue with the workforce and workers' representatives and from their feedback. This ongoing exchange helps

identify key focus areas and ensures target alignment with Group priorities. The responsibility for managing and achieving these targets lies with

specific designated functions. Progress on targets is regularly disclosed through public reporting. For further details on:

▪ the target definition process

▪ stakeholder involvement in target setting

▪ target base year and applicable period

▪ target monitoring and progress during the year

please refer to the Sustainability Plan in 1.6 Strategy, Business Model, and Value Chain.

7.9.2 Local minimum wages (S1-10)

In many countries, minimum wage levels are established by law (although in some countries there may be regional, state or other internal

variations). Where no specific law exists, a minimum wage may be established by collective bargaining agreements between employer

associations and trade union representatives. This, for example, is the case in Italy, Germany, and Belgium, where pay and employment

conditions are negotiated at regional or national level, with the possibility of further agreements on their application or supplementary terms and

conditions at company level. There are other instances in which minimum wage levels are established based on specific economic, social, and

political circumstances and therefore do not allow for cross border comparisons. In 2024, Iveco Group assessed the adequacy of entry-level

wages in each country of operation. The findings confirmed that employees were compensated appropriately, aligning with country benchmarks

(at or above the statutory minimum or collective labour agreement levels).

7.9.3 Employee benefits (S1-11)

Benefits often make up a meaningful part of the employees' total compensation package, with a value that goes beyond their salaries and cash

incentives. For this reason, Iveco Group offers a competitive range of benefits normally available to all full-time employees, and in many countries

also to part-time or temporary employees. Benefits may differ according to an individual’s position or country of employment.

Iveco Group conducted an assessment involving all its major sites, representing approximately 98% of its employees worldwide, to monitor the

availability and adoption of various Group benefits (e.g., pension plans, supplemental health plans, financial support for those with accident-

related permanent disabilities, life insurance, employee cafeterias or meal vouchers, etc.). The findings are shown in the following table.

Board Report Sustainability Statement 90

Employees Entitled to Benefits(a)

Iveco Group worldwide (%)


	2024
Financial benefits
Supplementary pension plans	76.5
Supplemental health plans	67.6
Financial support for accident/death/disability	87.8
Employee cafeterias or meal vouchers	87.3
Transportation(b)	19.8
Social benefits
Childcare(c)	59.2
Sports facilities(d)	28.3
Wellness and nutrition programmes(e)	86.1

(a) Information disclosed according to sustainability rating agency requirements.

(b) Includes benefits such as Group cars, fuel reimbursement, and transportation allowance.

(d) Includes free gym access, gym/fitness courses, and other sports initiatives.

(e) Includes nutrition coaching, smoking cessation support, medical check-ups and screenings, vaccinations, and other wellness programmes.

In 2024, approximately 77% of employees were eligible for a supplementary pension plan, and 66% of those eligible had joined one (representing

50% of the total population assessed).

In addition, nearly all of Iveco Group's legal entities participate in supplemental health care plans, the majority being insurance-based. Levels of

coverage vary by country, depending on the public health care system, tax and regulatory restrictions, and local market conditions. The data

collected showed that approximately 68% of employees were also eligible for a supplemental health plan, and about 98% of those eligible had

joined one.

Iveco Group complies will all legal requirements regarding benefits, insurance, and leave provisions in every country of operation. It should be

noted that, in a limited number of countries, certain benefits are not provided if not mandated by local laws. This is the case in Ethiopia, Tunisia,

India, and the United Arab Emirates (collectively accounting for approximately 0.3% of Iveco Group's global headcount), where social protection

does not cover unemployment benefits.

Data Calculation Methodology

Data and information related to employee benefits were collected through a dedicated IT management and control system (the ESGeo platform)

to ensure the reliability of information flows and data accuracy.

7.10 OCCUPATIONAL HEALTH AND SAFETY (S1-4, S1-5)

Iveco Group implements a series of measures to address the negative and positive material impacts related to occupational health and safety

identified through the materiality assessment.

These measures, outlined below, are designed to prevent, mitigate, and/or remediate the material negative impacts on the workforce while

maximising positive impacts.

The measures and management approaches in place are also aimed at mitigating the identified risks, and their effectiveness is monitored through

health and safety KPIs and the achievement of relevant targets.

Iveco Group's occupational health and safety strategy leverages effective preventive and protective measures, implemented both collectively and

individually, to minimise risk of injury in the workplace. The Group applies principles of industrial hygiene and ergonomics to its organisational and

operational management processes to ensure optimal working conditions, and adheres to the highest standards (even in countries with less

stringent regulations), believing this to be the best way to achieve excellence.

Under the safety management system, employees are integral to creating a culture of accident prevention and risk awareness, and are actively

involved in identifying and reporting any actual or potential work-related hazards (e.g., by using the appropriate forms). This proactive approach,

combined with other tools such as training and awareness-raising campaigns, allows sharing ethical occupational health and safety principles

across the Organisation, and achieving improvement targets more effectively.

(93) The base year (2019) injury frequency rate is equal to 2.758 injuries per 1,000,000 hours worked.

Board Report Sustainability Statement 91

In 2024, the Group delivered 243,321 hours of occupational health and safety training (of which 154,071 on the job). This covered both general

topics and specific work-related hazards (e.g., working at heights or in confined spaces, and safely handling hazardous substances), as well as

other topics such as personal protective equipment (PPE). The training's aim is to raise awareness and minimise operational health and safety

incidents. On-the-job training involved 21,649 employees (representing 60% of total Group employees), 78% of whom were hourly. Specific

refresher courses on safety rules and procedures are also delivered each year to contractors and agency workers.

Iveco Group requires its suppliers and partners to comply with worker health and safety regulations, promoting high standards across the value

chain to achieve continuous improvement. These principles are outlined in the Health and Safety Policy, adopted by the Group at its foundation,

available on the corporate website in 7 languages to all employees and stakeholders. The policy applies to all workers, including contractors and

agency workers.

Iveco Group involves all employees and their representatives in the development, implementation, and evaluation of the occupational health and

safety management system by:

▪ arranging periodic meetings

▪ consulting with them to identify hazards, assess risks, define controls and preventive measures, and analyse incidents (presenting any such

items at the above-mentioned meetings)

▪ engaging them in the development and review of occupational health and safety objectives and policies

▪ collecting their feedback on the preventive measures adopted, on the organisation of the occupational health and safety management system,

and on working methods and procedures.

Safety is a priority across the Organisation, as evidenced by the compliance of its management systems with the ISO 45001 international

standard.

Consolidated monitoring and reporting systems – such as the Sustainability, Performance, Analysis, Reporting, and Compliance (SPARC) system

– are used to track health and safety performance, measure the effectiveness of actions taken to achieve targets, and plan new improvement

initiatives, all through the management of appropriate key performance indicators (KPIs). These indicators can be analysed at different levels

(site, Business Unit, geographic region, or Organisation), thus enabling the simultaneous engagement of different corporate functions at various

levels to meet the targets set. The Group also performs periodic benchmarking, which helps drive the continuous improvement of its health and

safety performance.

Health and safety hazard identification and risk assessments are carried out consistently for both routine and non-routine activities at 100% of

Iveco Group’s plants, and issues are addressed with specific action plans, including quantified targets. These action plans are prioritised

according to risk assessment results, and the short-, medium-, and long-term countermeasures thus identified may include the modification or

replacement of activities, materials, or processes, particularly regarding the design (or redesign) of work areas, processes, and work organisation.

The effectiveness of these activities is verified via periodic internal audits and management reviews.

Risk assessments are conducted for normal, abnormal, and emergency conditions – as emergencies also require action plans to ensure they are

dealt with promptly and effectively.

In addition, newly acquired assets are assessed based on existing processes and activities, to determine what interventions are necessary to

achieve health and safety management compliance with Iveco Group's standards.

Iveco Group has set ambitious annual voluntary targets for occupational health and safety, taking into account the particular work, experience,

and technical advancement involved, while safeguarding employee health and the surrounding work environment. These targets are pursued by

implementing the continuous improvement processes of the safety management systems and are in line with the Group's Health and Safety

Policy. Furthermore, a specific strategic sustainability target was included in the Strategic Business Plan: to reduce the injury frequency rate of

employees and agency workers by 40% by year-end 2026 (compared to 2019(93)). In 2024, the rate decreased by 50.6% compared to 2019.

Injury Frequency Rate – Employees and Agency Workers

Iveco Group worldwide


	2024
Injury frequency rate(a) (injuries per 1,000,000 hours worked)	1.362
Lost time injuries (number)	85
Hours worked (number)	62,389,086

(a) The injury frequency rate is the number of injuries (work-related and non-work related, for employees and agency workers, resulting in at least 1 day of absence, excluding the day on

which the event occurred) divided by the number of hours worked, multiplied by 1,000,000. The base year (2019) injury frequency rate is equal to 2.758 injuries per 1,000,000 hours

worked. For information on the rationale for choosing 2019 as the base year, see 1.1 General Basis for the Preparation of the Sustainability Statement. Data for previous years are:

2023: 1.775, 2022: 2.424.

Board Report Sustainability Statement 92

Targets are developed and set by the relevant functions in collaboration with other departments and affected stakeholders, with final approval

from senior management. Targets are further shaped by the insights gathered through continuous engagement and dialogue with the workforce

and workers' representatives and from their feedback. This ongoing exchange helps identify key focus areas and ensures target alignment with

Group priorities. The responsibility for managing and achieving these targets lies with specific designated functions. Progress on targets is

regularly disclosed through public reporting.

For further details on:

▪ the target definition process

▪ stakeholder involvement in target setting

▪ target base year and applicable period

▪ target monitoring and progress during the year

please refer to the Sustainability Plan in 1.6 Strategy, Business Model, and Value Chain.

7.10.1 Responsibility and organisation

Iveco Group has established a consistent global organisational structure to safeguard and promote occupational health and safety across its

activities in all countries of operation.

Specific health and safety responsibilities are defined in compliance with national regulations, and assigned by employers with clearly identified

areas of accountability. Management at plants and in the workplace rests with local employers. Employee health management (e.g., health

monitoring, medical appointments, preventive consultations, vaccinations) is provided through in-house occupational health services delivered by

specially hired professionals, and through external services regulated by ad hoc consulting agreements.

The ultimate responsibility for initiatives focusing on occupational health and safety at Iveco Group lies with the Senior Leadership Team (SLT).

The central Energy, Environment, Health and Safety (EEHS) function (which serves as a reference point for sustainability) coordinates and

manages health and safety issues as per Iveco Group’s Health and Safety Policy. It periodically verifies performance against targets, proposes

new initiatives, and defines health and safety policies. Each plant’s EEHS unit is responsible for dealing with occupational health and safety

issues, as well as for providing specialised technical assistance to production managers and to those in charge of other processes at site level.

Moreover, each plant manager is responsible for realising specific projects to manage the occupational health and safety impact of manufacturing

processes. Lastly, the Board of Directors' ESG Committee is regularly informed of health and safety results, and comments where appropriate.

7.10.2 Certification process (S1-14)

Iveco Group has voluntarily certified its occupational health and safety management systems as per the ISO 45001 international standard,

covering 30 Group sites worldwide (both manufacturing and non-manufacturing) and accounting for 25,363 employees (about 71% of the

employees within the reporting scope) as well as 2,750 contractors and 3,006 agency workers (representing 73% and 90% of the respective

populations within the reporting scope).

Certifications are awarded by accredited international bodies that are, in turn, continuously and rigorously monitored by other international

organisations; they are issued following thorough checks, attesting to the high levels of reliability of Iveco Group's systems and the effectiveness

of its operational and procedural standards.

The Group regularly verifies the effectiveness of its management systems through documented and substantiated audits; these are performed

either by qualified internal auditors, or by external industry-specific auditors or independent certification bodies (second and third-party external

audits).

In 2024, the Organisation carried out 347 internal audits of its management systems, covering 25,228 employees (about 70% of the employees

within the reporting scope), as well as 2,649 contractors and 3,105 agency workers (representing 70% and 93% of the respective populations

within the reporting scope). Additionally, 30 external audits covered 25,363 employees (about 71% of the employees within the reporting scope),

as well as 2,750 contractors and 3,006 agency workers (representing 73% and 90% of the respective populations within the reporting scope).

7.10.3 Safety culture and actions (S1-4)

Iveco Group's Health and Safety Policy promotes individual participation through communication and awareness activities designed to stimulate

and motivate staff to play an active role in the overall improvement process. This approach is particularly important in a multinational and

interdisciplinary environment involving many cultures, multiple legal frameworks, and large numbers of people.

In 2024, several initiatives were implemented to promote a culture of safety and shared standards across the Organisation, including specific

training and awareness-raising activities to create a safer workplace. A few examples follow.

A Safety Leadership and Coaching pilot course was held for managers and supervisors at the Brescia and Turin plants (Italy), aimed at improving

workplace safety by adopting a forward-thinking approach to fostering a culture of awareness, open communication, and accountability. Training

was delivered by expert coaches in order to develop the essential skills needed to identify and mitigate potential hazards and unsafe behaviours.

The course was delivered in stages through monthly sessions, and included basic skills training (both classroom and workshop-based) followed

by on-the-job mentoring, providing ongoing support to create an enduring safety mindset.

(94) The non-manufacturing data refers only to sites with more than 30 employees.

(95) Near miss: an unplanned event that did not result in injury, illness, or damage, but had the potential to do so.

Board Report Sustainability Statement 93

Additionally, for the first time, the Group launched a simplified Lean Manufacturing project based on its internal Driving Operations Together

(DOT) programme at selected dealers of property (DOPs) across Europe. The initiative focused on improving safety performance through a

systematic approach incorporating specific standards and targeted shop floor activities.

Iveco Group monitors workstation ergonomics at all plants in each geographic region, so as to prevent potential problems before they arise and

identify and contain any critical situations. The following are a few examples of the initiatives implemented during the year to improve ergonomics

at various sites, not only through technical solutions but also with the support of external professionals.

The Rorthais plant (France) launched a project aimed at reducing musculoskeletal disorders (MSDs) with the support of professional ergonomists

and sports coaches. Over a period of 12 weeks, these experts observed the workers performing their tasks in the real work environment,

analysing their movements and routines (in terms of posture and displacement) for 5-10 minutes at a time throughout the workday, and then

provided personalised recommendations documented in individual logbooks.

The Madrid plant (Spain) installed a specialised gripper designed to securely handle tyres weighing up to 180 kilos each. It allows them to be

rotated 90º as they are moved from a storage to a mounting position, thanks to an integrated factory electric stacker dedicated to this task, which

eliminates the need for manual tyre handling during truck wheel changes in the delivery area.

The recent increase in e-vehicle production, coupled with the increasing involvement of operators in the management of high voltage systems,

required formal guidelines to be drawn up to consolidate and standardise the existing procedures previously developed independently by different

departments within the Group. To address this need, a dedicated Technical Working Group – led by the Health and Safety function, comprising all

relevant departments and with a significant contribution from Engineering – was set up to prepare the official Iveco Group High Voltage Safety

Guidelines. The Guidelines cover all stages of the management of e-vehicles and electrical components, including: battery management, personal

protective equipment (PPE), safety compliance of battery electric vehicle (BEV) projects, high-level manufacturing, testing and tools, training, risk

assessments, and evaluation and subsequent decommissioning of defective lithium-ion batteries.

7.10.4 Health and safety performance (S1-14)

In 2024, the Group spent approximately €63.5 million on improving health and safety protection, of which almost €58.3 million on improvements to

occupational safety and working conditions (worker protection, structural improvements, and inspections of plants and working environments),

and approximately €5.3 million on employee healthcare costs.

Accident rates are a clear indicator of how successful a company is at preventing occupational accidents. Owing to Iveco Group's many initiatives,

the overall injury frequency rate (for employees and agency workers) in 2024 was 1.362 injuries per 1,000,000 hours worked, a 23% drop

compared to the result achieved the previous year. Safety data relates to approximately 99.9% of employees within the reporting scope(94).

In the event of a work-related incident, a team is set up to conduct a field investigation and draw up a report to describe the event, analyse the

root cause, and identify necessary countermeasures. In the subsequent follow-up, the team verifies the effectiveness of the countermeasures

adopted, standardises them, and extends them to other areas subject to similar risks to prevent future incidents.

In 2024, 1,187 near misses(95) were reported and analysed, leading to the implementation of remedial actions that strengthened preventive

measures and contributed to further improvement. In addition, to better manage events such as injuries, incidents requiring first aid, near misses,

unsafe acts, and unsafe conditions, several initiatives were carried out across the Group to develop and disseminate tools for collecting,

analysing, and tracking data on such occurrences, thereby enhancing the effectiveness of the preventive measures in place.

Specific occupational disease indicators reflect a company's success in ensuring a healthy work environment for its employees. Occupational

diseases are typically the result of prolonged, gradual, and progressive exposure to harmful chemical, physical or biological agents during work.

The Organisation continually monitors and investigates such cases in order to identify persistent working conditions that may have caused their

onset, assess any residual risks, and implement any corrective and improvement measures needed to prevent recurrence.

In 2024, 5 cases of occupational diseases involving employees were ascertained by the relevant insurance authorities in the countries of

reference, while no cases were reported among contractors or agency workers operating at Iveco Group facilities worldwide.

Hazards with the potential to cause occupational illnesses are identified through risk assessments conducted at each site.

7.10.5 Safeguarding health

At Iveco Group, safeguarding employee health means more than reducing accidents and illnesses by identifying and eliminating hazards and

minimising risks. The Group is equally committed to promoting the psychological and physical wellbeing of its people through targeted disease

and disorder prevention programmes, backed up by assistance and support services (see 7.12 Welfare and Wellbeing).

Specific safety culture training was delivered in Sete Lagoas (Brazil) to raise employee awareness of psychosocial risks, the most common work-

related health problem affecting workers. The local Energy, Environment, Health and Safety (EEHS) team, in collaboration with external experts,

gave lectures at the plant to help employees understand the causes, symptoms, and prevention of this type of health disorder, providing examples

and guidance in identifying and managing such risks.

(96) Water, Sanitation, and Hygiene. Acronym broadly adopted in the international development context and in the emergency sector with reference to access to adequate water supplies,

sanitation facilities, and hygiene services.

Board Report Sustainability Statement 94

At the plant in Valladolid (Spain), a rehabilitation therapy service is now available to improve employees' health and to help reduce working days

lost due to illness. The in-house physiotherapy service has been equipped with a radiofrequency treatment machine to accelerate recovery from

sprains or tissue injuries and a body composition analyser for preventive health monitoring. The Group also strives to ensure industry-leading

working conditions through the implementation of hygiene principles (including fully functioning WASH(96) services), industrial ergonomics, tailored

organisational and operational processes (including preventive measures for noise exposure), and protocols in response to pandemics.

7.10.6 Work-related stress

Iveco Group has implemented several initiatives to assess work-related stress, including the adoption of a structured risk analysis process

focusing specifically on health and safety data. This risk analysis is tailored to the specific nature, aspects, and characteristics of each workplace

and working environment, and complies with the specific regulations in each country of operation. Since risk assessments for work-related stress

are influenced by environmental, cultural, and psychosocial factors, the Group has also developed a training programme for employees at all

levels to ensure the objectivity of risk assessments within any given region. Consequently, assessment outcomes may differ from country to

country. The systematic assessment of this type of risk helps to identify the most appropriate mitigation tools and promote employee wellbeing at

all Group plants. The outcomes of this process are continually monitored to assess the effectiveness of the measures in place (e.g., through

opinion surveys) and to implement new tools.

7.10.7 Occupational health and safety in numbers (S1-14)

With regard to quantitative KPIs and metrics, the main data and indicators are provided in the following tables.

Health and Safety Performance – Employees

Iveco Group worldwide


	2024
Fatalities as a result of work-related injury (number)	—
Fatalities as a result of work-related ill health (number)	—
Recordable work-related injuries (number)	76
Cases of recordable work-related ill health (number)	5
Days lost to work-related injuries and fatalities from work-related accidents, and days lost to work-related ill health and fatalities from ill health (number)	2,644
Injury frequency rate(a) (recordable work-related injuries per 1,000,000 hours worked)	1.332
Injury severity rate(b) (days lost per 1,000 hours worked)	0.046
Occupational illness frequency rate (OIFR) (cases of recordable work-related ill health per 1,000,000 hours worked)	0.088
Hours worked (number)	57,072,859

(a) The injury frequency rate is the number of work-related injuries (resulting in at least 1 day of absence, excluding the day on which the event occurred) divided by the number of hours

worked, multiplied by 1,000,000. Data for previous years are: 2023: 1.460, 2022: 2.199.

(b) The injury severity rate is the number of days lost (of at least 1 day, due to work-related injuries and fatalities from work-related accidents, and days lost to work-related ill health and

fatalities from ill health) divided by the number of hours worked, multiplied by 1,000. Data for previous years are: 2023: 0.062, 2022: 0.061.

Board Report Sustainability Statement 95

Health and Safety Performance – Contractors

Iveco Group worldwide


	2024
Fatalities as a result of work-related injury (number)	—
Fatalities as a result of work-related ill health (number)	—
Recordable work-related injuries (number)	9
Cases of recordable work-related ill health (number)	—
Days lost to work-related injuries and fatalities from work-related accidents, and days lost to work-related ill health and fatalities from ill health (number)	167
Injury frequency rate(a) (recordable work-related injuries per 1,000,000 hours worked)	1.348
Injury severity rate(b) (days lost per 1,000 hours worked)	0.025
Occupational illness frequency rate (OIFR) (cases of recordable work-related ill health per 1,000,000 hours worked)	—
Hours worked (number)	6,674,877

(a) The injury frequency rate is the number of work-related injuries (resulting in at least 1 day of absence, excluding the day on which the event occurred) divided by the number of hours

worked, multiplied by 1,000,000. Data for previous years are: 2023: 4.813, 2022: 1.612.

(b) The injury severity rate is the number of days lost (of at least 1 day, due to work-related injuries and fatalities from work-related accidents, and days lost to work-related ill health and

fatalities from ill health) divided by the number of hours worked, multiplied by 1,000. Data for previous years are: 2023: 0.046, 2022: 0.031.

Health and Safety Performance – Agency Workers

Iveco Group worldwide


	2024
Fatalities as a result of work-related injury (number)	—
Fatalities as a result of work-related ill health (number)	—
Recordable work-related injuries (number)	5
Cases of recordable work-related ill health (number)	—
Days lost to work-related injuries and fatalities from work-related accidents, and days lost to work-related ill health and fatalities from ill health (number)	425
Injury frequency rate(a) (recordable work-related injuries per 1,000,000 hours worked)	0.941
Injury severity rate(b) (days lost per 1,000 hours worked)	0.080
Occupational illness frequency rate (OIFR) (cases of recordable work-related ill health per 1,000,000 hours worked)	—
Hours worked (number)	5,316,227

(a) The injury frequency rate is the number of work-related injuries (resulting in at least 1 day of absence, excluding the day on which the event occurred) divided by the number of hours

worked, multiplied by 1,000,000. Data for previous years are: 2023: 1.649, 2022: 2.635.

(b) The injury severity rate is the number of days lost (of at least 1 day, due to work-related injuries and fatalities from work-related accidents, and days lost to work-related ill health and

fatalities from ill health) divided by the number of hours worked, multiplied by 1,000. Data for previous years are: 2023: 0.057, 2022: 0.051.

Data Calculation Methodology

Occupational health and safety data refers to both manufacturing and non-manufacturing sites and includes employees, contractors, and agency

workers. Data on senior managers is not included. Given the variability during the year of reference in the use of contractors and agency workers

at Iveco Group sites worldwide, their total numbers are based on basic mathematical calculations: figures are full-time equivalent (FTE) and

calculated based on respective total hours worked. Injury rates were calculated excluding commuting accidents, i.e., those involving employees

during normal commutes between place of residence and work. When calculating injury rates for contractors, hours worked may have been

estimated. In calculating days lost, days refer to calendar days.

7.11 PEOPLE DEVELOPMENT (S1-4)

Iveco Group implements a series of measures to address the negative and positive material impacts related to people development identified

through the materiality assessment. These measures, outlined below, are designed to prevent, mitigate, and/or remediate the material negative

impacts on the workforce while maximising positive impacts. Where applicable, outcomes are monitored through specific quantitative KPIs.

(97) Calculated by dividing the number of positions filled by internal candidates in 2024 by the total number of positions filled in the same year.

Board Report Sustainability Statement 96

7.11.1 Performance Development Process (S1-13)

Iveco Group's Performance Development Process (PDP), launched in 2023, is based on the concept of using dialogue for development and of

setting goals and objectives through both a top-down and bottom-up approach. The main goal is to ensure a talent assessment process where

development is given as much weight as performance, and where the overall evaluation is transparent. The process is hence designed to be

more human-centric. To ensure it is both effective and engaging, it includes regular checkpoints between managers and employees throughout

the year to provide frequent feedback on performance and development. This continuous and ongoing two-way feedback is meant to align

individual objectives with Group goals, and the development dialogue focuses as much on goal achievement and adherence to Group-endorsed

Behaviours as on each person’s aspirations, needs, and potential. Employees are evaluated not only on what they have done, but also on how

they have done it, with feedback driving motivation and ensuring alignment with the Group's Values and culture.

The outcomes and areas identified for improvement are openly discussed between manager and employee, paving the way for continuous

performance improvement. Upon completion, employees can access their respective evaluations online. Furthermore, at any point in the process,

they can enter details on their professional aspirations and request specific training (such as coaching, exposure to senior management, etc.) on

the areas they need to address. This unique skills mapping and appraisal process is supported by IT systems that give managers full access to

up-to-date information on the people within their organisational units, and on those indirectly in their reporting line. Individual employee

evaluations are therefore also accessible to and can be examined by senior management within the organisational structure.

The assessment phase of the process also entails bottom-up sharing and alignment between teams to ensure appraisals are consistent both with

achieved results and among comparable roles and teams. The main point is that the PDP provides a cohesive, transparent, and above all

individual-focused management framework for employee development.

Each employee is assessed through the PDP according to eligibility guidelines (for example, the employee must have worked at the Organisation

for more than 3 months), with all eligible employees taking part in the process.

In 2024, 11,690 employees (representing 100% of those eligible and 33% of the global employee headcount) participated in the PDP. Of these,

27% were female and 73% male, reflecting the same gender distribution as among Group employees at salaried-and-above levels.

In line with the Group's achieve and earn philosophy, designed to promote a culture of excellence and rewards, performance development

assessment results determine the individual contribution component of eligible employees' variable compensation. This demonstrates the extent

to which Iveco Group values a results-driven culture and rewards both achievements and behaviours.

In 2024, the Group set key sustainability targets related to its social, environmental, and climate change efforts (with the social ones also focusing

on diversity, equity, and inclusion). These targets (the achievement of which affects variable compensation) were incorporated into the PDP, and

duly assessed for relevant employees at different levels, including Sustainability project leaders, Energy, Environment, Health and Safety

managers, and other staff at plant level.

7.11.2 Talent management and succession planning

Universities, social media platforms, career events, and job fairs are a focal point of Iveco Group's recruiting efforts around the world. The Group

supports several universities, which affords it privileged relationships, a strong presence on campus, and regular student internships. In some

cases, it directly sponsors individual postgraduate students to carry out research projects at its sites. In others, university scholarships are

awarded to students studying in fields aligned with its recruitment priorities.

Iveco Group operates in a dynamic, highly competitive industry where success is achieved by identifying talented individuals within the

Organisation and appointing the right people to key positions. These objectives are at the core of the talent review process, which aims to identify

those individuals with growth potential and to support and accelerate their development.

In 2022, the Organisation established its Leadership Framework, which defines what leadership means at Iveco Group. It is built around 9

specific competencies and, to help managers and leaders improve in each of them, new learning modules are continually being developed. The

Framework is applied consistently to ensure Group-Wide alignment, providing a common language that everyone understands and that facilitates

open discussion around leadership competencies.

The talent review process begins with managers assessing their team members, followed by roundtable discussions on talent involving leadership

teams at all levels to align and validate the assessments. These roundtables ensure that decisions on talents are made collectively, transparently,

and objectively, which minimises bias and further supports the Group's DEI commitment.

After the talent assessment and validation process, managers and employees engage in a two-way Dialogue for Development to ensure

alignment with the Leadership Framework assessment, to identify clear areas for development, and to define a development plan to foster the

employee's growth.

The individuals identified as talent are offered development opportunities (formal training combined with exposure to senior management,

mentoring, coaching, and on-the-job training), which allow them to gain experience and skills while enabling the Organisation to develop effective

succession plans that give priority to candidates from within Iveco Group. Indeed, in 2024, 44% of open positions across the Group were filled by

internal candidates(97).

Board Report Sustainability Statement 97

In all countries of operation, the Group's preference is to appoint local managers. However, it may opt for international appointments if considered

to be development opportunities for talented individuals, or to ensure that specific skills and expertise are transferred between countries. In such

cases, the appointed manager is required to contribute to and invest in the selection and development of a local successor.

7.11.3 Learning and development

Iveco Group believes that employee development is key to engagement and retention, both of which are in turn crucial to the Organisation’s

health, growth, and sustainability. To this end, the Group deploys several forms of training to help employees fulfil their potential, sharing its

operational and business know-how as well as its strategy and Values. A specific policy on employee training and development has not yet been

implemented but is planned for future reporting cycles.

In 2024, Iveco Group invested approximately €17.9 million in learning and development initiatives at global level, demonstrating a strong

commitment to the growth of its people at all levels. This figure includes not only the pure cost of training within the ON LEARN learning

management system (LMS), which was approximately €4.1 million (see Training in Numbers), but all the other costs of people development

initiatives, including those managed outside the ON LEARN LMS platform (which cover, but are not limited to: training materials, MBA and

masters programmes, coaching, and costs related to the design of customised learning journeys, particularly under the functional and technical

academies).

In line with the human-centric approach of its Voice journey, Iveco Group views development as a multifaceted process encompassing far more

than conventional training, involving areas such as coaching, mentoring, knowledge sharing and, most importantly, on-the-job training. For this

reason, the Group refers to it as a ‘learning’ process, or model, within its development approach. The learning model is designed to adapt more

effectively and flexibly to evolving training needs arising from changes within the Group and in the economic environment. This business-oriented

learning strategy is built around key content areas such as:

▪ the fundamentals (covering essential topics such as soft skills, IT and software tools, language training, compliance)

▪ the Leadership Lab (aimed at building and strengthening the 9 competencies of the Leadership Framework)

▪ technical, functional, and job-specific skills (based on roles and areas of expertise).

All of the aforementioned learning opportunities are accessible to all employees and deployed consistently throughout the Group.

Learning at Iveco Group entails a 4-step process: training needs identification, content development, programme delivery, and reporting.

Ownership of each lies with different functions and Business Units, depending on which areas of content or expertise need to be improved.

The overall learning process is managed through the ON LEARN platform, the online global learning management system for defining and

managing the most effective and comprehensive learning processes for each employee based on business, location, and/or particular individual

needs. It builds upon the Group's academies and training programmes specific to each Business Unit and function.

More than 1,500 e-learning courses (offered in multiple languages) are available to Iveco Group employees worldwide, enabling them to learn at

their own pace. This approach ensures a consistent and inclusive learning experience for everyone, regardless of geographic location.

The Dialogue for Development (integrated into both the Performance Development Process and the talent review process) offers employees the

opportunity to reflect on their strong points, development areas, and professional aspirations and to discuss them with their managers. Together,

they define the most appropriate development actions to support personal growth over the year and beyond. Each development plan is therefore

unique and requires employees to play an active role in identifying their needs, determining appropriate development actions, and taking

responsibility for their own progress. The identified actions are then shared with the relevant HR Department, evaluated, and implemented

according to organisational needs and priorities. The role of the manager is to help individuals see how their aspirations, goals, and passions align

with the Group's mission, goals, and strategies, and to support them in realising their potential.

The Leadership Lab

The Leadership Lab, one of the pillars of the learning model, was established in 2023 as part of Iveco Group's cultural transformation journey to

build and strengthen its people's leadership skills at all organisational levels.

Leadership Lab contents are designed in line with the Leadership Framework, and currently include:

▪ the Group Leadership Programme (GLP): a learning journey for people identified as high potential talents (see 7.11.4 Employee Development

Programmes and Talent Retention)

▪ Leadership Essentials : a series of 9 courses, each covering a different Leadership Framework competency. The live, online or classroom-

based sessions are available in 7 languages to all office-based employees, regardless of their role or level. The contents have been designed to

ensure consistency and alignment with Iveco Group's Values and culture. In 2024, more than 70 sessions were delivered globally to

approximately 1,400 participants

▪ Moments That Matter : a set of resources (live or recorded webinars, manuals, etc.) to support managers at specific points on the employee's

journey (Performance Development, Leadership Framework Assessment, Voice Dialogue & Action). 5 Group-Wide livestreams were held

during the year, averaging 1,000 participants each and with high engagement throughout.

Board Report Sustainability Statement 98

Training in Numbers (S1-13)

In 2024, the training that Iveco Group provided exclusively under the ON LEARN LMS platform (and covered by the circa €4.1 million investment)

totalled 450,619 training hours, delivered to 26,481 employees. For details on the specific training modules delivered, refer to the following

sections:

▪ Code of Conduct (see 11.4 Corruption and Bribery)

▪ anti-corruption and bribery (see 11.4 Corruption and Bribery)

▪ antitrust and competition (see 11.3 Business Conduct and Corporate Culture)

▪ energy resource conservation (see 3.4.1 Scope 1 and 2 Emissions Actions and Targets)

▪ diversity, equity, and inclusion (see 7.8 Diversity, Equity, and Inclusion)

▪ occupational health and safety (see 7.10 Occupational Health and Safety).

Training in Numbers(a)

Iveco Group worldwide


	2024
Training hours (number)	450,619
Average hours of training per employee (number)	12.5
Average amount spent per employee (€)	122.9

(a) Information disclosed according to sustainability rating agency requirements.

Hours of Training by Type of Training(a)

Iveco Group worldwide (number)


	2024
	Job-specific expertise	Management & Soft skills	Languages & ICT tools
Training hours	307,813	96,993	45,813
Average hours of training per employee	8.5	2.7	1.3

(a) Information disclosed according to sustainability rating agency requirements.

Details of Training per Employee by Gender

Iveco Group worldwide (number)


	2024
	Male	Female
Training hours	345,382	105,237
Average hours of training per employee	12.0	14.7

Details of Training per Employee by Category

Iveco Group worldwide (number)


	2024
	Hourly	Salaried	Professional	Manager
Training hours	159,554	84,852	131,621	74,592
Average hours of training per employee	6.8	17.4	23.4	33.9

Details of Training per Employee by Age Group(a)

Iveco Group worldwide (number)


	2024
	Under 30 years	30 to 50 years	Over 50 years
Training hours	55,382	285,376	109,861
Average hours of training per employee	13.3	13.7	9.9

(a) Information disclosed according to sustainability rating agency requirements.

(98) Workplace mental health and wellbeing platform.

Board Report Sustainability Statement 99

Data Calculation Methodology

Data and information related to people development were collected through dedicated IT management and control systems (such as the ON

LEARN platform for data on training), where available, to ensure the reliability of information flows and data accuracy, or through spreadsheets

populated directly by the representatives of each thematic area worldwide and verified by their supervisors.

7.11.4 Employee development programmes and talent retention

Iveco Group firmly believes that a skilled, engaged, and knowledgeable workforce is not only closely correlated with improved performance but

also with the long-term sustainability of the business.

Development programmes are designed to foster a culture of continuous learning and growth. Integral to overall strategy, these programmes

empower employees to acquire new skills, adapt to evolving business environments, and make innovative contributions to achieving Iveco

Group's goals. Moreover, they are a means to enhance employees' sense of belonging, while reducing turnover and increasing retention.

In 2023, as part of its Leadership Lab offer, the Group launched the Group Leadership Programme (GLP), a structured learning journey

targeted at employees identified as high-potential talents. The programme explores the 3 dimensions of the Leadership Framework, providing

people with new tools and knowledge, along with opportunities for networking, reflection, and interaction among colleagues from different

departments and geographies. Spanning a 5-month period, the GLP is structured into 4 workshops (2 webinars and 2 in-person sessions) and 3

action-learning opportunities, during which participants are engaged in individual activities, group coaching, and peer coaching.

The programme's main objectives are:

▪ to provide a clear understanding of what leadership is at Iveco Group

▪ to equip leaders with the right mindset and tools to grow into strong leaders (based on the 9 competencies of the Leadership Framework)

▪ to increase the engagement of participants, enabling them in turn to further engage their teams and enhance their people's development (which

translates into business benefits in terms of productivity, innovation, and inclusion)

▪ to build a network that can be leveraged to encourage ongoing interaction and collaboration beyond the programme itself.

In 2024, 176 people (comprising 3 cohorts) graduated from the GLP, while an additional cohort of 60 people joined the programme. 41% of those

who graduated (73 people in total) advanced to new positions during the year, accelerating their development within the Organisation.

Outplacement

Iveco Group has specific programmes in place to manage career transitions, helping employees move on to new jobs and to find their bearings in

the job market. In some countries, it also offers outplacement services that are outsourced to carefully selected external partners. Based on

specific needs, and at the Organisation's discretion, outplacement services are also offered to managers.

7.12 WELFARE AND WELLBEING (S1-4)

Iveco Group implements a series of measures to address the negative and positive material impacts related to employee welfare and wellbeing

identified through the materiality assessment. These measures, outlined below, are designed to prevent, mitigate, and/or remediate the material

negative impacts on the workforce while maximising positive impacts. Where applicable, outcomes are monitored through specific quantitative

KPIs. It is common practice for Iveco Group to offer wellbeing initiatives to its people in addition to traditional benefits (such as healthcare), going

beyond legal obligations in the countries where it operates. Time- and money-saving initiatives and flexible working arrangements help employees

balance their personal commitments, while family initiatives, community engagement activities, and involvement in Group life enhance employee

motivation, pride, and sense of belonging in the workplace.

The Group recognises that its people's wellbeing is directly linked to their ability to balance professional and personal commitments, which is

why it offers several programmes and services to support them. Stress management training, access to the Unmind(98) platform, and counselling

services were offered in France and Italy, benefitting hundreds of employees by improving mental resilience and emotional wellbeing. Flu

vaccination campaigns were rolled out in Austria, Germany, and Spain, reaching thousands of employees and improving health, while free or

subsidised flu vaccines were offered in Belgium, Italy, and Sweden.

These initiatives focused on prevention and health protection and on reducing absenteeism, reflecting a global effort to prioritise employee

health. Cancer prevention, smoking cessation, and health awareness initiatives were conducted in several countries. In France, campaigns

focused on breast cancer, colorectal screening, sleep health, and organ donation. A mobile breast cancer screening service was offered in Italy,

while large-scale annual campaigns for breast and prostate cancer prevention were deployed in Spain, benefitting thousands of employees.

Childcare is an area where managing costs and time is crucial. The Group provides various types of assistance to employees, including childcare

nurseries, discounts at local day care centres, direct subsidies, school kits, and the flexible use of benefit funds for childcare expenses. In support

of new mothers, designated lactation/breastfeeding spaces ensuring hygiene and privacy continued to be made available at several sites

worldwide.

(99) Data collected for all Group employees, excluding hourlies.

(100) As family leave KPIs are subject to a phase-in period, they were reported voluntarily based on data collected over a limited timeframe (January-October), with plans to gradually extend

data collection in future reporting cycles.

(101) Data on maternity leave includes any optional parental leave taken by male employees.

(102) Leave granted to employees to provide personal care or support to a relative or a household member in need of significant assistance due to a serious medical condition.

Board Report Sustainability Statement 100

7.12.1 Flexible working

Iveco Group believes in improving employee wellbeing through flexible work arrangements, as permitted by local customs and regulations, by the

organisational requirements in place, and by the job requirements of each position. Flexible working hours, including part-time employment, help

employees balance work demands with family responsibilities, enabling them to manage their time to suit their needs (such as those related to

childcare, care for the elderly, or other personal matters). These measures help the Group establish and maintain a positive working environment

for all employees.

In 2024, the Organisation analysed the flexible working arrangements offered to its people, focusing on flexible working hours and parental and

other forms of leave. The wide-ranging analysis helped identify appropriate action for improving employee work-life balance, and revealed that

approximately 93.7% of the employees involved(99) made use of a flexible work schedule that allows them to choose the time they clock in and out

(within limits set by local policies).

Several schemes were further expanded to provide employees with greater flexibility to work from different locations. The Work from Home

scheme, which allows people to work from home for up to 12 days per month (subject to local policies), is now available in 26 countries,

benefitting over 9,000 employees globally. These programmes enhance work-life balance, employee flexibility, and engagement, aligning with

modern workplace trends.

In Italy, the Group offers the Venerdì Breve (Short Friday) scheme that allows people to vary the number of hours worked per day, provided they

work their set contractual hours per week (e.g., 8.5 hours from Monday to Thursday and 6 hours on Friday).

7.12.2 Family leaves (S1-15)

The equal opportunities offered by Iveco Group extend to family leaves and are evidence of its commitment to encouraging both female and male

employees to balance parental responsibilities with their careers. Family leaves are granted to all employees, in compliance with local regulations

(labour law requirements may vary from country to country), collective labour agreements, and Group policies.

In 2024(100) , 53% of Group employees were eligible for maternity leave, with 5% of those eligible taking it. 55% of the overall leave was taken by

female employees, 45% by male employees(101).

Meanwhile, 90% of employees were eligible for paternity leave, with 2% of those eligible taking it. 95% of overall leave was taken by male

employees, 5% by female employees.

Carers' leave(102) was available to 98% of Group employees, with 9% of eligible employees taking it. 80% of the overall leave was taken by male

employees, 20% by female employees.

In Italy and Spain (which collectively represent 52% of the global employee headcount), employees are entitled to at least 11 weeks of paid

maternity or paternity leave. In some cases, the family leave conditions offered by the Organisation (defined according to corporate policy or

agreements with trade unions or employee representatives) were more favourable than those required by law. In the Czech Republic and

Argentina, for instance, additional leaves were granted for significant life events, such as childbirth, weddings, and bereavement, so providing

support to employees during critical times in their lives.

7.12.3 Sense of belonging and pride

Various initiatives are in place to foster employees' sense of belonging and pride in the Group. Entertainment and social activities were offered

and gifts distributed to young children of Iveco Group employees. In December 2024, the Iveco Group Industrial Village in Turin (Italy) was

transformed into a Winter Circus hosting more than 6,700 employees with their families and friends over the two-day event. Christmas gifts were

distributed in Brazil, Switzerland, and Belgium to children up to 11 years old. Family Days were organised in Brazil, France, and Italy, where

employees brought their families to visit the workplace, celebrate achievements, and enjoy entertainment. In Brazil, the Big People for a Day

initiative gave employees' children an experience of their parents' workplace.

During the year, about 2,900 employees at various Iveco Group sites donated 26,711 hours to volunteering activities, with numerous initiatives

aimed at supporting people, society, and the environment. To kick off the Group's Sustainability and DEI Week , several activities were realised to

help local communities, focusing on inclusion and engagement. These included Volunteering Day initiatives, with more than 1,300 employees

participating at Group sites worldwide. During the Volunteering Day held in Turin (Italy), in collaboration with Rise Against Hunger, 700 food kits

were assembled and distributed to 350 local families in need. In its second year, the event brought together over 200 people, a strong turnout

reflecting the active engagement of Group employees, whose contribution was key to the event's success. Similarly, hundreds of employees

worked side-by-side with NGOs in various cities, including: Bolzano, Foggia, and Piacenza (Italy); Annonay, Bourbon-Lancy, and Rorthais

(France); Arbon (Switzerland); Ulm (Germany); Prague and Vysoke Myto (Czech Republic); Bangkok (Thailand); Cordoba (Argentina);

Dandenong (Australia); and Shanghai (China). In Sete Lagoas (Brazil), the Group provided humanitarian aid to support the people in Rio Grande

do Soul affected by flooding, offering assistance to local communities during this challenging time. In the Sichuan Province (China), IVECO

donated a drinking water purifier system to two primary schools, with the Brand's volunteers teaching a class in order to raise students' awareness

of safe drinking practices and to share knowledge on water conservation.

Board Report Sustainability Statement 101

The Group also focused on promoting sport and recreational activities to encourage a healthy and active lifestyle while fostering team spirit and

social connections. Initiatives such as marathons, cycling races, football tournaments, yoga classes, and wellness challenges engaged

employees and their families across various regions. Examples include the Ardéchoise cycling race in France, the Pigiama Run charity race in

Italy, and wellness challenges at multiple sites, inspiring employees to stay active while contributing to meaningful causes. Programmes such as

Wellhub and IDV FIT provided access to sports facilities and discounted wellness services, benefitting thousands of employees. In total, over

7,000 employees globally took part in these sports and wellness activities.

7.13 INDUSTRIAL RELATIONS (S1-8)

Iveco Group qualifies as an EU-scale group of undertakings, and is therefore subject to regulatory provisions designed to improve workers' rights

to information and consultation through the establishment of a European Works Council (EWC). Requests to begin negotiations on the

establishment of an EWC were received by the Group from the trade unions in two different countries in July and October 2023, respectively.

Procedures were subsequently initiated, in accordance with applicable legislation, to enable employee representatives to establish a Special

Negotiating Body (SNB) responsible for negotiating with management on the establishment of the EWC and for determining, among other things:

the scope of the EWC's duties and powers, its size and composition, the powers and length of the EWC members' mandate, and the information

and consultation process. The procedures for the election or appointment of workers' representatives to establish the SNB were completed in

October 2024, with negotiations on the EWC set to begin in 2025 after SNB members have completed specific training organised with the support

of the European Trade Unions Institute (ETUI).

7.13.1 Freedom of association

As stated in its Code of Conduct, Iveco Group recognises and respects the right of its employees to be represented by trade unions or other

representatives established or appointed as per local applicable law.

An analysis of unionisation was carried out during the year in most of the Group's countries of operation, each of which has its own specific

legislation regulating freedom of association. In certain countries, the level of trade union representation cannot be verified because an

employee's union membership is considered a private matter and, as such, is not communicated to the employer.

At the time of the analysis, 10 countries were excluded due to data privacy protection (accounting for 21.9% of Iveco Group employees), whilst 21

countries (accounting for 3.4% of the population mapped) had no employees affiliated with a trade union.

It should be noted that the absence of employee affiliations with trade unions does not prevent employees from establishing representation bodies

with information, consultation, and negotiation rights. This is the case in Romania and Poland, for instance, where around 200 Iveco Group

employees (representing 17.4% of the total employee headcount of the 21 countries with no employee affiliations to trade unions) elected just

such a representative body.

The results of the analysis on unionisation, conducted in 9 countries (accounting for 74.7% of total Group employees), are reported below.

Union Membership

Iveco Group worldwide (%)


	2024
Country	Union membership	Non-union membership
Lithuania	80.0	20.0
Ethiopia	77.5	22.5
China	75.8	24.2
Argentina	68.1	31.9
Spain	61.4	38.6
Italy	41.4	58.6
Czech Republic	31.7	68.3
South Korea	2.4	97.6
Brazil	0.4	99.6

7.13.2 Representative bodies (S1-2)

Representative bodies, normally elected by workers at their respective plants, have the right to be informed and/or consulted and/or to enter

negotiations on issues that, as defined by law or applicable collective agreements, may regard health and safety in the workplace, wages and

benefits, operational issues (working hours, shifts, collective vacations, etc.), training, equal opportunities, company restructuring, collective

redundancies, and so on. In the countries of the European Union, the establishment of employee representative bodies is envisaged for

companies and/or sites where employee numbers exceed the minimum limits specified by national laws or procedures.

Board Report Sustainability Statement 102

An assessment carried out in 2024 in all of Iveco Group's countries of operation revealed the absence of any employee representative bodies in

23 of those countries (accounting for approximately 4.8% of the employees analysed). Worldwide, more than 90% of Iveco Group employees are

covered by representative bodies.

7.13.3 Joint committees (S1-2)

In 2024, data showed that 70.2% of Iveco Group employees worldwide were represented by occupational health and safety joint committees (i.e.,

committees made up of both Organisation and worker representatives). Globally, joint committees addressing equal opportunities, training, and

pay were found to represent 10.6%, 11.3%, and 9.7%, respectively, of the employees analysed, while more than 56% of them were represented

by joint committees that deal with other issues.

7.13.4 Collective bargaining agreements (S1-8)

As at 31 December 2024, collective bargaining agreements (CBAs) covered about 94.7% of Group employees. This is an average figure, the

actual percentage per region or country depending on local practices and regulations. It should be noted that about 53% of the agreements

reached in 2024 at company level were signed with unions or employee representatives collectively representing more than 50% of Iveco Group's

employees. Meanwhile, 5.3% of the employees assessed are located in countries or at legal entities or sites where CBAs are unavailable; for

almost 15% of these employees, employment terms and conditions are determined based on the CBAs covering other Group employees in other

countries, or on the CBAs in force at other organisations.

Collective Bargaining Coverage and Social Dialogue

Iveco Group worldwide


	Collective bargaining coverage		Social dialogue
Coverage rate	Employees – EEA(a) (for countries with >50 employees representing >10% total employees)	Employees – Non-EEA(a) (estimate for regions with >50 employees representing >10% total employees)	Workplace representation (EEA(a) only) (for countries with >50 employees representing >10% total employees)
0 - 19 %	—	—	—
20 - 39 %	—	—	—
40 - 59 %	—	—	—
60 - 79 %	—	—	—
80 - 100 %	Czech Republic, France, Italy, Spain	South America	Czech Republic, France, Italy, Spain

(a)European Economic Area.

It should be noted that the employees in the Czech Republic, France, Italy, and Spain represent 73.1% of Iveco Group's global headcount, while

those in South America account for 11.1%.

In 2024, Iveco Group signed a total of 144 collective labour agreements (CLAs) at either Group, legal entity or plant level, 7.7% of which included

provisions on health and safety matters.

European Directive 104/2008 stipulates the principle of equal treatment for temporary agency workers. In particular, it specifies that the basic

working and employment conditions that apply to a company's employees must also apply to the hired temporary workers performing the same

job, for the duration of their assignment. Basic working and employment conditions are those established by legislation, regulations, administrative

provisions, collective agreements, and/or other binding general provisions in force at a company that relate to pay, working hours, overtime,

breaks, rest periods, night shifts, personal time off, and public holidays.

As at 31 December 2024, all of the temporary agency workers with active assignments at Iveco Group's legal entities in European Union

countries, representing more than 99% of the Group's active temporary agency workers globally, were covered by the equal treatment provisions

outlined above.

(103) For example, early retirement is applicable only if provided for by the law of the country in question. Furthermore, unless supported by an adequate scheme formally recognised by the

relevant public pension system, any solution mandating early retirement risks harming rather than helping employees.

Board Report Sustainability Statement 103

Main Issues Covered under the Agreements(a)

Iveco Group worldwide (%)


	2024
Training	34.2
Wages/pay issues	28.8
Other	10.4
Operating issues	9.9
Health & safety	7.7
Restructuring	3.6
Equal opportunities and/or diversity, equity, and inclusion (DEI)	2.7
Stress management	0.9
Employability and life-long learning	0.9
Career development	0.9

(a) Information disclosed according to sustainability rating agency requirements. There is no correlation between the number of agreements and the number of issues covered, as each

agreement may deal with several issues.

7.13.5 Restructuring and reorganisation

Iveco Group's best practice, in part derived from past experience under the corporate structure in place until 31 December 2021, is to make every

effort to minimise the social impacts of any restructuring or reorganisation. In fact, this is customary practice in all countries where the law requires

consultations or negotiations with workers' representatives or trade unions in the event of either. Where permitted by the regulations in force(103) ,

the Group minimises the social impacts of restructuring and reorganisation by adopting a series of measures, either individually or in combination,

such as: retraining, internal mobility programs, individual follow-up consultations with employees, reduced working hours, outplacement services,

early retirement, and/or compensation more favourable than required by law.

In 2024, despite the general decline in market demand, especially in Europe and Argentina, any major restructuring was avoided by resorting to

temporary layoffs. These measures were applied at most Iveco Group plants in Italy and Spain, based on agreements or consultations with trade

unions as per local legislation.

In Germany, the collective dismissal process initiated following the reconciliation of interest agreement reached in December 2023 with the Iveco

Magirus AG works council was completed. This was part of a strategic restructuring aimed at increasing the profitability of the pre-owned vehicles

business. The measures agreed with the works council to minimise social impacts included severance pay, outplacement support, and early

retirement.

In Switzerland, reorganisation was undertaken at FPT Industrial's R&D centre in Arbon to strengthen the focus on research, advanced

engineering, and new technology domains. This has allowed (i) offering early retirement through individual agreements, accepted by 10

employees; and (ii) managing, with the involvement of the workers council as required by law, 8 redundancies, most of which on a voluntary basis

through individual mutual agreements, with incentives exceeding legal requirements.

In Argentina, the restructuring plan launched in late 2023 in response to early indications of a notable fall in demand was completed in 2024 by

terminating the employment contracts of approximately 40 additional permanent employees. This was done by mutual consent, with individually

agreed incentives. As always, there were discussions with the trade union to minimise the impact of redundancies on the corporate climate.

Meanwhile, temporary measures were implemented at the IVECO and FPT Industrial plants in Cordoba to align workforce levels with the reduced

production demand; these included temporary layoffs (with reduced salary payments) and reductions in working hours, in agreement with trade

unions. By the last quarter of 2024 these measures were no longer necessary, thanks to the gradual economic recovery and respective

production increase at both plants.

7.13.6 Labour unrest

In France, the level of labour unrest in 2024 declined substantially compared to the previous year. Most of the strikes were related to annual wage

negotiations and to the implementation of the new metallurgy sector job classification system.

In Italy, the overall level of labour unrest in 2024 led to a 20% increase in hours lost due to strikes compared to the previous year. It should be

noted that almost 83% of the total strike hours were due to external factors unrelated to Iveco Group (such as solidarity strikes for workplace

accidents at other companies or strikes against government measures), an increase of 26% compared to the previous year.

In Spain, during negotiations for the renewal of the collective bargaining agreement covering Iveco Espana's sites in Madrid and Valladolid, a

strike was held at the Madrid site only, lasting 3 days and affecting 3 Saturday overtime shifts.

(104) Joint ventures in which Iveco Group holds at least a 51% interest are included in the perimeter.

Board Report Sustainability Statement 104

In the Group's other countries of operation, there were no episodes of labour unrest during the year.

7.14 HUMAN AND LABOUR RIGHTS MANAGEMENT (S1-17)

7.14.1 Human rights assessment

Iveco Group monitors respect for human rights across its internal operations and throughout its supply chain and customer base by means of

dedicated processes for each area, as described in the following sections.

The Group's voluntary commitment to its material sustainability matter Working conditions and human rights of own workforce is reflected by the

sustainability target included in the Sustainability Plan: to complete a human rights assessment cycle (for the 2025-2027 period) by year-end

2027, covering 100% of employees working in internal operations. This target, consistent with Iveco Group's Human Rights Policy, aims to ensure

processes are continuously updated to reflect best human rights practices and applies to all its activities. In 2024, the Group completed its first

human rights assessment cycle (for the 2022-2024 period), covering 100% of its employees. For further details on:

▪ the target definition process

▪ stakeholder involvement in target setting

▪ target base year and applicable period

▪ target monitoring and progress during the year

please refer to the Sustainability Plan in 1.6 Strategy, Business Model, and Value Chain.

To monitor human rights across its internal operations, the Group has a structured process to identify potential risk or non-compliance areas in

need of further assessment and to implement mitigation measures where necessary. The initial self-assessment phase of this process, overseen

by the HR Department of the country of reference, evaluates compliance with the Human Rights Policy and with international human rights

standards. This is followed by a second phase of on-site audits to address any critical issues identified through the self-assessments and to define

any remedial actions needed for continuous improvement. The Group also conducts detailed human and labour rights risk assessments when

acquiring significant new businesses, operations, or projects, typically as part of the due diligence process and often with the assistance of

specialised external law firms or advisors.

Self-Assessments

To monitor respect for human rights within its internal operations(104), the Group conducts an annual impact assessment survey that involves

several countries selected in rotation, so as to cover 100% of internal operations over the course of 3 years. The aim of the survey, involving self-

assessment questionnaires filled out by Iveco Group's HR country managers, is to identify and prevent any adverse corporate impacts on key

human rights aspects, including:

▪ non-discrimination and the right to equal remuneration (also covering the rights of women, indigenous people, and migrants)

▪ child labour and young workers

▪ forced labour (including human trafficking)

▪ harassment

▪ freedom of association (including the right to collective bargaining)

▪ occupational health and safety.

The impact assessment also focuses on the promotion of local communities' social and economic development based on their specific needs.

Internal Human Rights Assessment

Iveco Group worldwide


	Countries involved	Employees involved (%)	Employees involved (number)
2022	Austria, France, Germany, Italy, Portugal, Spain, Switzerland	72	25,768
2023	Argentina, Brazil	11	3,854
2024	Algeria, Australia, Belgium, Bulgaria, China, Czech Republic, Denmark, Ethiopia, Finland, India, Indonesia, Lithuania, Morocco, Netherlands, New Zealand, Norway, Poland, Romania, Russia, Serbia, Slovakia, South Africa, South Korea, Sweden, Thailand, Tunisia, Türkiye, Ukraine, United Arab Emirates, UK, USA	17	5,555

(105) United Nations' Guiding Principles on Business and Human Rights: Implementing the United Nations ‘ Protect, Respect and Remedy’ Framework 2011.

(106) For the purposes of the assessment, hazardous working conditions include: work with dangerous machinery, equipment or tools; the manual handling or transport of heavy loads;

exposure to hazardous substances, agents or processes; exposure to health-damaging temperatures, noise levels, or vibrations; and work under particularly difficult conditions (long

hours or night shifts).

(107) A coordinated and collaborative approach to evaluating and ensuring the effectiveness of risk management and control processes across various functions or units within an

organisation.

Board Report Sustainability Statement 105

Over the past 3 years, and in each geographic region evaluated – covering 100% of the Group's employees and sites – the assessments have

consistently confirmed the presence of policies and controls that ensure respect for human rights in line with local legal requirements.

Furthermore, they have not identified any severe human rights violations, including in relation to child labour, forced labour or freedom of

association. The assessments complied with Art. 17 and 18 of the Guiding Principles on Business and Human Rights, 2011(105) (the Ruggie

Framework). It should be noted that mitigation plans for more than 200 Group sites are in place in the event that negative impacts related to

human rights are identified.

Every year, a specific assessment of Iveco Group's employees worldwide is conducted to monitor the presence of child labour across its legal

entities, as well as the level of compliance with the Code of Conduct's child labour principles.

In 2024, data collected on 100% of the employees confirmed that none of the Group's legal entities employed individuals under the statutory

minimum age for employment or apprenticeship set by local laws. It also showed that no minor under the age of 18 employed by Iveco Group

under a regular employment or apprenticeship contract was exposed to hazardous working conditions(106).

On-Site Audits

As per Iveco Group's risk management and internal control process, the self-assessments submitted by HR country managers regarding the

performance of legal entities and internal operations in upholding human rights may be verified by the Internal Audit Department through specific

audits. These are conducted either on-site or remotely, depending on the need and suitability of in-person verification. The areas posing a

potential risk to human rights are identified based on the outcomes of the specific self-assessments, or those of the periodic Risk Assessment

(RA) performed by Internal Audit.

The RA examines and evaluates the risks associated with each of the Group's auditable legal entities, units, functions, processes, and cross-

functional projects or activities. It also considers significant risk information that may emerge from aligned assurance(107) activities carried out with

Iveco Group's Senior Management and relevant functions, such as Enterprise Risk Management (ERM), Energy, Environment, Health and Safety

(EEHS), Compliance, and Sustainability. Risks to human rights may also be identified through complaints or whistleblowing reports mainly

received via the Compliance Helpline, with on-site audits then planned accordingly.

On-site audits check the accuracy and completeness of the information provided by Iveco Group's HR country managers, and involve reviewing

any documentation and interviewing the managers of the areas under audit. A report is compiled to keep track of all relevant information on

human rights issues and of any improvement measures identified during the audits. The report is subsequently shared with the relevant corporate

functions, along with any mitigation measures required.

The assessment conducted in 2024 by the HR Department did not highlight the need for a dedicated audit by the Internal Audit Department.

7.14.2 Incidents of discrimination and harassment

For detailed information on any incidents or reported matters regarding discrimination (which also covers harassment) during the reporting period,

see 11.5 Violations of Business Conduct.

In 2024, 50 incidents of discrimination (which also covers harassment) were reported during the year, and 236 complaints were received through

Iveco Group's whistleblowing channels, none of which led to fines, penalties or compensation for damages. However, two prior incidents, both

related to discrimination, led to fines issued against Iveco Group, resulting, respectively, in €21,600 in non-pecuniary damages and approximately

€600 in penalties.

Board Report Sustainability Statement 106

8. WORKERS IN THE VALUE CHAIN (S2)

8.1 OUR APPROACH TO THE SUSTAINABILITY MATTER (SBM-2, SBM-3)

The Iveco Group materiality assessment identified Workers in the value chain as a material sustainability matter, linked to the ESRS S2 sub-topic

and sub-sub-topics:

▪ ‘Working conditions’ (including ‘Secure employment’, ‘Working time’, ‘Adequate wages’, ‘Social dialogue’, ‘Freedom of association’, ‘Collective

bargaining’, ‘Work-life balance’ and ‘Health and safety’)

▪ ‘Equal treatment and opportunities for all' (including ‘Training and skills development’)

▪ ‘Other work-related rights’ (including ‘Child labour’ and ‘Forced labour’).

The expected short-term impacts related to Workers in the value chain were identified as negative and described by stakeholders in the following

ways: “An ineffective supplier selection and monitoring system jeopardises satisfactory working conditions (i.e., secure employment, working time,

adequate wages, social dialogue, freedom of association, collective bargaining, work-life balance) and leads to human rights violations (e.g., child

labour, forced labour), affecting workers in the supply chain”; and “Inadequate engagement with Iveco Group's suppliers leads to failure to comply

with safety standards, causing critical incidents and injuries involving workers in the supply chain”.

Meanwhile, the expected short-term impacts related to Workers in the value chain were also identified as positive and described by stakeholders

as follows: “Engagement activities and training programmes involving workers in the supply chain and downstream value chain contribute to the

development of specific competencies, and enhance people engagement and satisfaction”.

For more information, see 1.9 Identifying and Assessing Material Impacts, Risks, and Opportunities in this Sustainability Statement.

To identify its material impacts, Iveco Group conducted its materiality assessment considering its entire value chain, encompassing the workers

involved in both upstream and downstream economic activities as well as those involved in resource extraction and transformation, even though

the Group does not purchase raw materials directly. D uring the assessment of risks and opportunities related to its value chain workers, the

Group also focused on those arising from external impacts and dependencies, which were duly considered during the evaluation process.

Based on the assessment, the workers identified as relevant to Iveco Group are those employed at:

▪ component suppliers

▪ logistics suppliers

▪ the Group's dealerships and service network.

The workers who drive Iveco Group vehicles are also considered end users.

8.2 POLICIES RELATED TO VALUE CHAIN WORKERS (S2-1)

Iveco Group strongly supports the responsible management of its entire value chain, as further described in 11.7 Sustainable Supply Chain, and

is committed to socially responsible business practices as reflected in its Code of Conduct and corporate policies.

No significant changes to the policies were made during the reporting year.

8.2.1 Supplier Code of Conduct

The Supplier Code of Conduct requires suppliers to treat their workers in a fair and non-discriminatory manner. This includes ensuring equal

opportunities and prohibiting any policy that, either directly or indirectly, results in discrimination against them on any prohibited grounds, including

but not limited to: ethnicity, gender, sexual orientation, social or personal status, health, physical condition, disability, age, nationality, religious or

personal beliefs, political opinion, or any other legally protected characteristics. Iveco Group will not establish or continue a relationship with any

counterpart that refuses to respect the principles of its Code of Conduct, which explicitly endorses the protection of human rights.

The Supplier Code of Conduct stipulates suppliers' compliance with local legislation and their respect for:

▪ labour and human rights

▪ environmental protection

▪ trade restrictions/export controls

▪ business ethics.

(108) Leading European business network for corporate sustainability and responsibility.

Board Report Sustainability Statement 107

The Supplier Code of Conduct applies to Iveco Group's entire supply chain, including all persons and entities (each referred to as a ‘Supplier’) that

provide goods or services to the Group or its subsidiaries, outlining the standards to be upheld in their daily business activities.Iveco Group's

Board of Directors is responsible for overseeing the implementation of the Supplier Code of Conduct, ensuring compliance while conveying the

Group's values and expectations as clearly and explicitly as possible. Suppliers are required to work with Iveco Group to enforce the Code itself,

and to pass on its principles to their respective employees, subsidiaries, affiliates, and subcontractors. To ensure the consistent alignment of the

supply chain and purchasing practices with the Supplier Code of Conduct, suppliers undergo an Ethical Check every 3 years. This assessment is

conducted by an external third party, using a dedicated reporting system that allows the monitoring of any potential issues that may require further

clarification or investigation. This periodic monitoring is regulated by corporate policies and procedures designed to ensure supplier compliance.

The Supplier Code of Conduct is aligned with the United Nations' (UN) Universal Declaration of Human Rights, the International Labour

Organization (ILO) Standards, and the UN Convention against Transnational Organized Crime. The Supplier Code of Conduct is available in 7

languages (Czech, English, French, German, Italian, Portuguese, and Spanish) on both the Group's website and Supplier Portal.

8.2.2 Human Rights Policy

Iveco Group's commitment to safeguarding workers' rights is also reflected in its Human Rights Policy, which outlines the principles that every

counterpart, from suppliers and service providers to dealers and distributors, must adhere to in conducting business for or on behalf of the Group.

These principles include all fundamental human and labour rights, such as fair working conditions, the prohibition of child labour, non-

discrimination, freedom of association, and occupational health and safety. Specifically, the policy explicitly states that Iveco Group does not

tolerate, and strictly prohibits, the use of forced or compulsory labour, all forms of involuntary servitude or slavery, any form of human trafficking

(whether by force, fraud or coercion), sex trafficking, and commercial sex activities by any person covered by the policy. In alignment with the

policy, these practices are also strictly prohibited by Iveco Group's Supplier Code of Conduct. The human rights principles included in the

aforementioned documents are consistent with the spirit and intent of the United Nations' (UN) Universal Declaration of Human Rights, the OECD

Guidelines for Multinational Enterprises, and the relevant Declaration on Fundamental Principles and Rights at Work of the International Labour

Organization (ILO). Iveco Group seeks to promote respect for these principles by its contractors, suppliers, and all other entities and individuals

with whom it has a business relationship. To this end, the Group engages suppliers throughout the year to promote their continuous improvement

in preventing and mitigating social impacts . The Human Rights Policy applies to Iveco Group N.V. and its subsidiaries, to the directors, officers

and employees of such entities, to those acting for or on behalf of such entities, and to all parties with which the Group conducts business,

including but not limited to suppliers, service providers, sales representatives, agents, consultants, dealers, distributors, importers, resellers, and

joint venture partners. While it is the responsibility of all persons covered by the policy to ensure respect for human rights, the Senior Leadership

Team (SLT) retains executive oversight and responsibility for its implementation. At Group level, the Board of Directors is responsible for

overseeing the policy's implementation and ensuring adherence to its commitments, while managers are responsible for overseeing its application

at local level. The Human Rights Policy is available on the corporate website in 7 languages (Czech, English, French, German, Italian,

Portuguese, and Spanish).

Another demonstration of Iveco Group's respect for human rights is its stand against the use of natural resources extracted in conflict zones. In

this regard, the Group has adopted both a compliance programme and a Conflict Minerals Policy intended to promote the responsible sourcing

of tin, tantalum, tungsten, and gold (referred to as conflict minerals or 3TG) from the Democratic Republic of Congo (DRC) and other countries or

areas considered at high risk of conflict, where revenues from their extraction have historically funded armed conflict and human rights abuses. In

2024, there were no reported cases of non-compliance with human rights principles involving value chain workers.

8.3 ENGAGING VALUE CHAIN WORKERS (S2-2)

Firmly convinced that suppliers are key to sustainable growth, Iveco Group endeavours to keep them engaged and informed at all times. This

continuous dialogue and exchange helps strengthen supplier relationships, providing fertile ground for shared goals and strategies, for thriving

collaborations and joint projects, and for preventing and mitigating potential negative impacts.

Engagement activities are carried out through several ongoing channels:

▪ the Supplier Portal, which represents the main collaboration and communication platform used by the Group to interact with its supply chain. It

contains the forms, documents, and tools used to exchange information and manage any operations involving suppliers

▪ the Open-es platform, an initiative for increasing supplier engagement with and awareness of sustainability matters, including social issues

and human rights. The platform’s approach revolves around creating a sense of community and providing a space where experiences can be

shared. The opportunity for comparison with other industry companies helps suppliers become more aware of their strengths and more mindful

of any areas for improvement and possible action priorities

▪ ongoing initiatives promoting the exchange of ideas and information with suppliers, such as workshops and webinars

▪ the Responsible Trucking platform, a project coordinated by CSR Europe (108) to improve the working conditions of road transport workers as

well as compliance with legislation.

These initiatives are overseen by a dedicated Governance, Performance, and Sustainability Management Team (established within the Supply

Chain Leadership Team), which is also responsible for monitoring the suppliers' compliance with the Supplier Code of Conduct and their

sustainability assessment proces s.

(109) See the Conflict-Affected and High-Risk Areas (CAHRAs) list of the European Commission.

(110) See the ‘OECD Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas’.

(111) See the ‘OECD Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas’.

Board Report Sustainability Statement 108

8.4 ADDRESSING NEGATIVE IMPACTS AND VALUE CHAIN WORKER CONCERNS (S2-3)

In 2022, Iveco Group established a Compliance Helpline to provide suppliers, customers, and other third parties with a dedicated means to

report potential violations of applicable laws and corporate policies. This global reporting tool is available in 15 languages and managed by an

independent third party. Reports can be submitted in several ways, including anonymously where permitted by law. Available channels include in-

person reporting to a manager or other company representative, dedicated phone lines, the relevant section of the corporate website, and a

dedicated app for Android and iOS. Additionally, the Group expects its suppliers and business partners to make grievance mechanisms available

to their employees. Group policy protects anyone reporting a concern in good faith from retaliation of any kind, as further described in 11.3

Business Conduct and Corporate Culture.

A global case management system, implemented in conjunction with the Compliance Helpline, helps ensure the accurate tracking and timely

resolution of any investigations, which are primarily conducted by the Internal Audit, Human Resources, Legal, and/or Compliance functions. The

process for providing remedies, where needed, is consistent with specific corporate policies and procedures designed to address any form of

violation, applicable to all stakeholders within the value chain.

8.5 ADDRESSING IMPACTS, RISKS, AND OPPORTUNITIES FOR VALUE CHAIN WORKERS (S2-4)

8.5.1 Upstream supply chain workers

Iveco Group's approach to preventing potentially negative impacts on workers within the upstream value chain is integrated into its overall supplier

management system, which monitors, among other aspects, adherence to social standards. Suppliers are selected based on their observance of

the Group's social and ethical principles. In this regard, new suppliers are specifically required to sign a formal Commitment Declaration of

compliance with both Iveco Group's Code of Conduct and Supplier Code of Conduct. Furthermore, specific contractual clauses require them to

demonstrate their commitment to various issues, including promoting workplace health and safety, ensuring non-discrimination, prohibiting forced

and/or child labour, and recognising employees' freedom of association. If a supplier fails to adhere to any of the above principles, Iveco Group

reserves the right to terminate the business relationship or instruct the supplier to implement a corrective action plan. Supplier performance is

regularly monitored, including through sustainability risk assessments meant to identify critical suppliers requiring additional measures, follow-ups,

and/or auditing.

In 2024, sustainability audits were conducted by external auditors at 84 supplier plants worldwide, involving 84 suppliers. Corrective action plans

were later formulated for 66 of these to address 331 findings related to environmental, social, and governance (ESG) aspects. These plans

focused on topics such as promoting internal communication and engagement, as well as formalising processes and/or procedures for managing

the risk of child labour and human rights violations. Action plans are then monitored via follow-up meetings between each supplier and a Group

auditor. In the event of defaulting suppliers, further corrective actions are defined and implemented in agreement with the competent internal

departments. In 2024, no suppliers were found to be at risk in terms of child labour, forced/compulsory labour, or violation of either freedom of

association or collective bargaining, and no severe human rights issues involving value chain workers were reporte d. Iveco Group's commitment

to the workers within its value chain goes beyond mitigating negative impacts, with efforts made to foster dialogue, collaboration, and the

continuous improvement of business partners' performance. In 2024, several initiatives were promoted to disseminate sustainability practices

across the value chain (see 11.7 Sustainable Supply Chain).

Conflict Minerals

Another demonstration of Iveco Group's respect for human rights is its stand against the use of natural resources extracted in conflict zones. To

this end, the Organisation has adopted a compliance programme and a Conflict Minerals Policy intended to promote the responsible sourcing of

tin, tantalum, tungsten, and gold (referred to as conflict minerals or 3TG) from the Democratic Republic of the Congo (DRC) and other countries or

areas considered at high risk of conflict(109), where revenues from their extraction have historically funded armed conflict and human rights

abuses. The Conflict Minerals Policy, as well as the General Purchasing Terms and Conditions (GPTC), requires affected suppliers to conduct a

reasonably comprehensive enquiry into the existence and origins of any 3TG in their respective supply chains, and to provide written evidence of

due diligence by completing the Conflict Minerals Reporting Template (CMRT), in line with Regulation (EU) 2017/821 and subsequent

amendments. Iveco Group's due diligence process and measures have been designed to conform, in all material respects, with the due diligence

framework presented by the Organisation for Economic Co-operation and Development (OECD) in its 2016 publication Due Diligence Guidance

for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas ( 110) (third edition, OECD Publishing), including its

Supplements on gold, tin, tantalum, and tungsten. This due diligence framework is also known as the OECD Guidance. Iveco Group is committed

to making every reasonable effort to establish, and require affected suppliers to disclose, whether the products purchased contain 3TG obtained

from sources that fund armed conflict or support inhumane treatment in the DRC or other countries or areas considered at high risk of conflict(111).

(112)See the Conflict-Affected and High-Risk Areas (CAHRAs) list of the European Commission.

Board Report Sustainability Statement 109

The Group has processes in place to record and act on concerns expressed by employees and others about possible improper or unethical

business practices or violations of corporate policies (including the Code of Conduct, Supplier Code of Conduct, and Conflict Minerals Policy) or

applicable laws. This grievance mechanism is described in the Conflict Minerals Policy. Globally recognised Compliance Data Exchange (CDX)

software is used for conflict mineral management, selected for its ability to interface directly with the International Material Data System (IMDS)

that the Organisation has used for years to manage substances of concern (SoC) in its vehicles. Through the CDX software, the Group is able to

evaluate the Conflict Minerals Report Templates (CMRT) submitted by about 300 suppliers for a sample of products, and to automatically verify

and file the subsequent reports. This setup also enables the suppliers' direct involvement in a qualitative cross check analysis of CMRTs against

the chemical compositions stated in the respective Material Data Sheets (MDS). More than 210 of the suppliers that were asked to complete the

CMRT in 2024 did so as per OECD guidelines, and the Procurement Department will chase up the remainder. If the products sold to Iveco Group

are found to contain 3TG, suppliers must identify their sources and discontinue procurement, as soon as commercially feasible, of those

containing 3TG obtained from sources that fund or support inhumane treatment in the DRC or other countries or areas considered at high risk of

conflict(112). Iveco Group reserves the right to reassess future business dealings with suppliers that fail to comply with this policy.

Responsible Use of Cobalt

Cobalt is becoming an important material for Iveco Group, being a key element in the lithium-ion rechargeable batteries used in electric vehicles

that play a significant role in reducing greenhouse gas (GHG) and polluting emissions. Cobalt is also used in the production of magnetic, wear-

resistant, and high-strength engineering alloys, properties that are all critical in efficient vehicle design. The world’s largest producer of cobalt is

the Democratic Republic of the Congo (DRC), holding more than 50% of global cobalt reserves. In recent years, annual cobalt consumption

globally has trended upwards and is expected to rise significantly over the medium term. However, many reports have highlighted concerns over

the social and environmental impacts of cobalt extraction, including the use of child labour and unsafe working conditions in artisanal cobalt

mining operations. Having previously benchmarked various companies' best practices under the Group's former corporate structure, in 2024, key

lithium-ion battery suppliers were surveyed on their sourcing information in light of Iveco Group's plan to implement a wider due diligence process

on the responsible sourcing of cobalt throughout its supply chain. Furthermore, in light of the recently published EU Regulation 2023/1542 on

batteries and waste batteries that introduced a new due diligence policy for several raw materials contained in batteries – cobalt, natural graphite,

lithium, and nickel – the Organisation readied itself to work with its supply chain and all other stakeholders to evaluate the social and

environmental risks of using them.

8.5.2 Downstream supply chain workers

As regards downstream value chain activities, Iveco Group recognises the central role that the dealer and service network plays in its interaction

with end users. For this reason, the Group believes it is essential to develop the skills and know-how of all dealership personnel, which is why it

created a training department to address dealer network training needs and enhance staff knowledge and expertise. Special training programmes

are run every year for approximately 20,000 dealership personnel (technicians, salespeople, and after-sales staff), designed according to the

strategies and needs of each Business Unit, brand, and geographic region. The training approach is to build on the dealer network's expertise and

ability to meet customer requirements, from tailoring product offerings to individual needs to performing timely repairs to minimise product

downtime. The Group offers customised training courses and solutions consistent with current market conditions, as well as a wide range of

activities delivered, where possible, in the native languages of dealers and customers. Courses are delivered in many forms, be it face-to-face at

company training centres, in virtual classrooms (VCR), or via web-based training (WBT). WBT courses are delivered through Iveco Group's Web

Academy platform, which extends their availability and cuts costs by minimising the need to travel. Delivery methods are chosen by course users

according to the certification level required. Coaching sessions with expert trainers are also available to provide in-depth knowledge of innovation

and technology within the Group's dealer processes.

Before engaging in a commercial transaction with a customer, Iveco Group conducts a due diligence screening and risk assessment. Companies,

shareholders, and owners are screened against a number of lists – issued, among others, by the UN, the EU, and the USA – intended to counter

any specific concerns, including human rights violations. As an additional measure, when appropriate, the Group ensures that its sales

agreements include specific end-user contract clauses, or end-user statements and/or undertakings, for certain transactions or locations identified

as high risk by the risk assessment. In AMEA (Asia, Middle East, and Africa), a more robust clause was introduced in sales agreements, explicitly

requiring all dealers and other third-party distributors to comply with various human rights requirements when reselling Group products.

As regards end users, Iveco Group joined the Responsible Trucking project, a collaborative platform launched by CSR Europe (a leading

European business network promoting corporate sustainability and responsibility). The project enables companies to work together on evaluating

the impact of their operations on logistics and to seek ideas for improving drivers' working conditions. The first step of the initiative involved the

Group's plants in Suzzara (Italy) and Valladolid (Spain), as well as 6 of its carriers. An anonymous survey was made available to all drivers via a

QR code posted at the two plants and at the carriers' premises. The questionnaire covered the following topics: respect for people's rights

(working hours, fair and equal pay, the right to join a trade union), the adequacy of the employer's training provision, and quality and safety

standards in loading/unloading bays. Based on the initial wave of responses received from 149 of the plant drivers and 98 of the carrier drivers,

the Group was able to identify its plants' strengths and pinpoint areas for improvement, which will be addressed over the coming years.

(113) Target progress is calculated as a percentage of Iveco Group's annual purchase value (APV).

Board Report Sustainability Statement 110

8.6 TARGETS RELATED TO VALUE CHAIN WORKERS (S2-5)

Iveco Group's commitment to upholding human rights and fair working conditions within the supply chain is reflected in the following targets

included in the Sustainability Plan, which focus on engagement and training programmes for workers in the value chain:

▪ 100%(113) of Tier 1 suppliers to be involved in sustainability assessments by year-end 2026

▪ 80 supplier sustainability audits to be executed in 2025

▪ 100% of dealership staff to be involved in safety training on Iveco Group's electric product portfolio by year-end 2026

▪ collaborations with 100% of key partners to improve the working conditions and work-life balance of drivers by year-end 2026.

For further details on:

▪ the target definition process

▪ stakeholder involvement in target setting

▪ target base year and applicable period

▪ target monitoring and progress during the year

please refer to the Sustainability Plan in 1.6 Strategy, Business Model, and Value Chain.

Board Report Sustainability Statement 111

9. AFFECTED COMMUNITIES (S3)

9.1 APPROACH TO THE SUSTAINABILITY MATTER (SBM-2, SBM-3)

Iveco Group's materiality assessment identified Local communities as a material sustainability matter, linked to ESRS S3. The expected short-

term impacts related to this sustainability matter were found to be positive, summarised by stakeholders as follows: “Community engagement

initiatives promote development and value creation within local communities”. During the assessment of risks and opportunities related to affected

communities, the Group also focused on those arising from external impacts and dependencies, which were duly considered during the evaluation

process. It should be noted that no negative impacts were identified (in terms of being exposed to greater harm) for any specific group of affected

communities. The Group's approach is to support projects that deliver measurable business and investment benefits to the countries of operation,

while fostering high-value, long-term partnerships.

The main pillars of the governance model for local initiatives include:

▪ ESG and local community strategies

▪ specific decision-making bodies, each with an approval threshold, supported by the Legal and Finance functions

▪ dedicated control mechanisms, such as a structured approval workflow and budget registers.

9.2 POLICIES AND ENGAGEMENT RELATED TO AFFECTED COMMUNITIES (S3-1, S3-2)

As set forth in its Code of Conduct (see 11.2.1), Iveco Group is committed to community engagement by playing an active role wherever it

operates, contributing to local social, economic, and institutional development through specific programmes. The Group considers the material

sustainability matter Local communities of paramount importance, recognising that engaging them in initiatives fosters both their development and

value creation.

9.2.1 Community Investment Policy

The Community Investment Policy governs Iveco Group's actions in relation to local communities, addressing key impacts and potential risks

while supporting the Organisation in achieving its sustainability targets and ambitions. It establishes a framework – at both corporate and site

levels – for the development and implementation of community initiatives, ensuring a coherent and consistent approach across Iveco Group

worldwide. A Group-Wide strategy has also been developed to identify focus areas for initiatives aligned with the expectations of the

Organisation's businesses and stakeholders.The Community Investment Policy applies to Iveco Group N.V. and its subsidiaries, to the directors,

officers and employees of such entities, and to those acting for or on behalf of such entities. The Senior Leadership Team (SLT) is responsible for

monitoring compliance with the policy, updating it as necessary, and reporting on progress. The policy, available on the corporate website, has

been shared with all Group employees and senior management worldwide.

9.2.2 Human Rights Policy

As outlined in its Human Rights Policy (see 7.2.1), Iveco Group recognises that its decisions can have significant direct and indirect impacts on

the local communities in which it operates. As such, it places particular emphasis on supporting the most vulnerable communities, while upholding

their rights to a healthy environment, property and land ownership, an adequate standard of living, and access to natural resources. Accordingly,

the Group is committed to taking all reasonable measures to inform these communities about relevant actions and projects, fostering open

dialogue to ensure their legitimate expectations are considered. All stakeholders are expected to act in a socially responsible manner by

respecting local cultures and traditions and upholding integrity and good faith to maintain the trust of the community.

9.3 ADDRESSING NEGATIVE IMPACTS AND AFFECTED COMMUNITY CONCERNS (S3-3)

Iveco Group established a Compliance Helpline to provide all stakeholders, including affected communities, with a dedicated means to report

potential violations of applicable laws and corporate policies. This global reporting tool, managed by an independent third party, is available in 15

languages. Reports can be submitted in several ways (including anonymously, where permitted by law):

▪ in person to a manager or other Group representative

▪ through the corporate website's Compliance Helpline section, managed by a third party

▪ through the dedicated app, available for Android and iOS

▪ through dedicated phone lines (calls are directed to a voice mailbox managed by a third party; messages are then transcribed and sent to the

Group anonymously).

Iveco Group policy protects anyone reporting a concern in good faith from retaliation of any kind, as further described in 11.3 Business Conduct

and Corporate Culture. A global case management system, implemented in conjunction with the Compliance Helpline, helps ensure the accurate

tracking and timely resolution of any investigations, which are primarily conducted by the Internal Audit, Human Resources, Legal, and/or

Compliance functions. The process for providing remedies, where needed, is consistent with specific corporate policies and procedures designed

to address any form of violation, applicable to all stakeholders within the value chain.

Board Report Sustainability Statement 112

9.4 AFFECTED COMMUNITY ACTIONS (S3-4)

Iveco Group believes in making a positive contribution to society in the countries where it operates. It seeks to share its Purpose, Values,

knowledge, and resources with its communities in order to foster development, unlock opportunities, and reduce inequalities for people who have

fewer prospects due to limited resources. Against this background, the Group has also identified risks and opportunities. For example, local

communities' opposition to its activities may cause reputational damage and/or affect business continuity. Furthermore, Iveco Group's credibility

and pursuit of long-term equitable social development would be at risk if it supported projects that did not align with community priorities or lacked

social impact, or if it collaborated with organisations whose actions were not consistent with its ethical values. Given the scale of challenges facing

both planet and people, the Organisation addresses such risks by prioritising projects that deliver measurable benefits to the countries where it

operates in terms of business and investments, while establishing high-value, long-term partnerships.

The aspects that could significantly impact local communities, and that Iveco Group is committed to improving, concern:

▪ the impact on the health of workers and their families

▪ improvements in the welfare of workers and their families

▪ the impact of atmospheric emissions

▪ air quality protection

▪ water management

▪ waste management and soil/subsoil protection

▪ biodiversity protection

▪ adoption of logistics solutions with lower environmental impact.

The Group monitors all of the above, along with other aspects, initiating targeted projects (directly impacting local communities) at those plants

where biodiversity protection and water management and monitoring are deemed necessary. When monitoring the impact of its operations on the

environment and on local communities, the Group also considers the suppliers that it relies on and has partnered with, and to whom it transfers

best practices. In this regard, these suppliers are required to abide by the Organisation's principles on human rights and working conditions (e.g.,

to reject all forms of forced and/or child labour), environmental protection, and business ethics.

As part of its strategy, Iveco Group has identified 3 main action priorities to reflect its business role in connecting people with other people, with

goods, and with services across various locations worldwide:

▪ Preserve Biodiversity: the Group aims to strengthen connections between people and nature by building mutually respectful relationships that

recognise nature's intrinsic value (the planet), its instrumental role in economic growth (the economy), and its relational benefits (to human

health and cultural identity)

▪ Reduce Inequality and Protect Diversity and Vulnerable Groups: the Group aims to promote the advancement of people, culture, and

ideas, and to enhance socio-economic inclusion and technological development, by empowering vulnerable groups and migrants

▪ Foster Health and Wellbeing: the Group aims to play an active role in fostering health and wellbeing, equity, and fairness, so as to deliver

improvements in education, income, and individual living and working conditions.

Driven by its commitment to social development, Iveco Group empowers its local communities through 5 pillars of action:

▪ Awareness: raising awareness of a cause or issue that reflects people's lived experience

▪ Education: empowering people and building resilient communities, generating positive repercussions that can potentially extend generations

into the future (i.e., developing the skills of tomorrow's workforce by promoting STEM disciplines, literacy, improved education, and problem-

solving from childhood to university)

▪ Mentorship: building the community and fostering closer ties to the Group

▪ Partnership: working in community-based partnerships to identify specific needs, assets, and priorities

▪ Tailored Projects: designing and implementing tailored projects aimed at specific outcomes that bridge societal divisions and advocate for a

shift ‘from stockholder to stakeholder’.

9.5 AFFECTED COMMUNITY METRICS AND TARGETS (S3-5)

The Organisation's voluntary commitment to local communities is reflected by the strategic sustainability target incorporated into the Strategic

Business Plan: a 50% increase in the number of students involved in educational activities by year-end 2026 (compared to 2019), focusing on the

jobs of the future. This target, which is in line with the Community Investment Policy, aims at promoting equity, inclusion, and engagement by

focusing on community educational activities and the empowerment of vulnerable groups.

In 2024, the resources allocated by Iveco Group to local communities totalled €3.88 million.

For further details on:

▪ the target definition process

Board Report Sustainability Statement 113

▪ stakeholder involvement in target setting

▪ target base year and applicable period

▪ target monitoring and progress during the year

please refer to the Sustainability Plan in 1.6 Strategy, Business Model, and Value Chain.

Data Calculation Methodology

Investment data for local communities is categorised as per the principles set out in the Business for Societal Impact (B4SI) Framework. Data is

based on accounting data and methods, and also includes estimates. With regard to local community projects, the Group monitors both initiative

costs and management costs. The initiative cost may be a cash contribution or in-kind donation by Iveco Group, or volunteer work (the latter is

estimated based on the number of hours Group employees spend volunteering for the initiative during paid working hours). Management costs

can be internal (i.e., the cost of employee time to manage and organise humanitarian initiatives promoted by the Organisation) or external (i.e.,

any external expenditure intended to maximise interactions with the community, including the costs of travel, research, and communication).

Time contributions represent the monetary value of hours of volunteer work carried out by employees during working hours (it also includes

initiatives where legal entities are fully or partially reimbursed through public funds). The hourly rate is calculated by dividing total employee costs

by the number of employees, then dividing the result by the number of working days per year (240), and again by the standard number of working

hours per day (8). Figures do not include brand promotion initiatives.

The Group measures the impact of its local community investments according to the B4SI Framework, generating an impact report that is

submitted and certified by the B4SI itself. The Corporate Community Investment Form, developed in line with the B4SI Framework, is used to

evaluate the types of benefits gained in the 4 major areas potentially affected by any project: people, organisation, environment, and business.

Based on this methodology, the 4 areas are weighted and the project's impact on specific aspects within each is rated on a scale from 1 (no

impact) to 5 (very high impact). An average rating is then calculated for each area, representing the indicators (KPIs) to assess the project’s

overall impact on people, organisation, environment, and business, respectively. The KPIs in detail are:

▪ benefit to people – positive change in people's attitude or behaviour; skills and personal development; direct impact on people's quality of life

▪ benefit to organisation – capacity building

▪ benefit to environment – direct environmental impact; impact on human activities and behaviour

▪ benefit to business – benefits of volunteering for employees (job-related skills, personal impact, behavioural change); improvement in

stakeholder relations/perceptions; business generated; brand awareness.

Board Report Sustainability Statement 114

10. CONSUMERS AND END USERS (S4)

10.1 APPROACH TO THE SUSTAINABILITY MATTER (SBM-2, SBM-3)

Customer centricity is the core principle driving Iveco Group's strategy, shaping everything it does, which is why an open line of communication is

crucial with those who use the Group's products in their work. Iveco Group's materiality assessment identified Product quality, safety, and

accessibility as a material sustainability matter, linked to the ESRS S4 sub-sub-topic ‘Health and safety’. Meanwhile, both Dealer and customer

management and Digitalisation and connectivity emerged as entity-specific material sustainability matters.

The expected short-term impacts related to Product quality, safety, and accessibility were identified as negative and described by stakeholders as

follows: “The ineffective management of design and production processes affects product quality, reducing the safety and/or satisfaction of drivers

and passengers”.

The expected medium-term impacts related to Dealer and customer management were identified as positive and defined by stakeholders as

follows: “Developing and maintaining strong relations with dealers and customers contributes to improving their satisfaction levels”.

The expected medium-term impacts related to Digitalisation and connectivity were found to be positive, described by stakeholders as follows:

“The digitalisation and connectivity of Iveco Group's products contribute to enhancing the customer experience, improving driver satisfaction and

safety on the road”.

During the assessment of risks and opportunities related to its consumers and end users, the Group also focused on those arising from external

impacts and dependencies, which were duly considered during the evaluation process. Meanwhile, with regard to the aforementioned

sustainability matters, no material risks and/or opportunities were identified by the stakeholders involved in the assessment.

For more information, see 1.9 Identifying and Assessing Material Impacts, Risks, and Opportunities in this Sustainability Statement.

End Users

For Iveco Group, end users represent the final link in the value chain and include vehicle drivers – whether private owners, fleet operators, or

logistics companies – as well as bus drivers and passengers. They rely on accurate and accessible product and service information, such as

manuals and product labels, to prevent improper (and potentially damaging) product use. Indeed, any potential negative impacts are associated

with product defects or misuse. Designing products that meet rigorous safety standards to protect drivers, passengers, and all other road users is

a daily undertaking for Iveco Group, reflecting not only its commitment but also its responsibility to the community. The Group makes every effort

to deliver safe, secure, and high-quality vehicles by researching, developing, and adopting ergonomic, functional, and technical solutions that

enhance product safety and security. Safety-critical product components are identified right from the design phase in specific technical drawings

and undergo detailed assessments (e.g., dynamic calculations, structural analysis, laboratory testing, static and dynamic vehicle testing, and type

approval testing). In compliance with the Group's quality standards and internal procedures, workstations that manage safety components during

production are clearly marked, and the personnel tasked with handling or inspecting these components are suitably trained. Safety components

are also labelled to ensure traceability if corrective actions are needed.

As regards road safety, research and development into product safety systems focuses on 3 key areas:

▪ active safety – aimed at collision avoidance through solutions such as Advanced Driver Assistance Systems (ADAS), Electronic Stability Control

(ESC), and Anti-Lock Braking System (ABS)

▪ passive safety – aimed at damage mitigation

▪ tertiary safety – aimed at post-crash safety management.

ADAS technologies assist drivers in the safe operation of vehicles. Leveraging digitalisation and connectivity, these systems use advanced sensor

technologies, such as radar and cameras, to detect nearby obstacles or driver errors and respond accordingly.

The main ADAS solutions on the market and currently offered by Iveco Group include:

▪ Advanced Emergency Braking System (AEBS), which alerts the driver to a potential collision and automatically activates the brakes to avoid or

reduce the speed of impact

▪ Lane Departure Warning (LDW), which alerts the driver when the vehicle inadvertently veers into adjacent road lanes or moves too close to

road edges

▪ Adaptive Cruise Control (ACC), which maintains a safe cruising speed and distance from the vehicle ahead while on the road

▪ Moving Off Information System (MOIS), which alerts the driver to obstacles directly in front of the vehicle before the latter moves off from a

stationary position

▪ Blind Spot Information System (BSIS), which warns the driver of any obstacles on either side of the vehicle

▪ Lane Keeping Assist (LKA), which helps prevent inadvertent lane drifting by automatically steering the vehicle

▪ Intelligent Speed Assist (ISA), which provides the driver with continual warnings about the current speed limit

(114) The European New Car Assessment Programme, which provides European consumers with information on the safety of passenger vehicles.

Board Report Sustainability Statement 115

▪ Driver Drowsiness and Attention Warning (DDAW), which assesses the driver's alertness through vehicle systems analysis and generates a

warning if needed

▪ Passive Lane Change Assist (PLCA), which warns the driver of unsafe lane changes that could cause a collision.

All of the above are active safety systems and tools designed to help prevent road accidents caused by human error, poor driving skills, fatigue, or

simple lack of judgment.

However, ensuring driver and passenger safety in the event of an accident requires more than just active safety solutions. The vehicle's

construction, especially the chassis, plays a crucial role in absorbing the energy of the impact and in protecting the occupants from subsequent

damage to the cabin and from rapid deceleration. Equipped with crash beams and with driver and passenger airbag systems, the Group's N1 and

M1 vehicles, part of the IVECO Daily range, are type-approved in compliance with current European occupant safety regulations. Following

several studies on passive safety and biomechanics, Iveco Group's light and medium commercial vehicles can optionally be fitted with Advanced

Occupant Restraint Systems (AORS) for enhanced protection in the event of frontal impact. Light vehicles also come with the additional option of

installing window airbags to protect occupants in the event of a side impact. Manufacturers tend to focus mainly on primary and secondary safety

to help drivers avoid accidents, limit their consequences, and reduce the effects of any impacts (kinetic energy dissipation).

However, as underlined by Euro NCAP(114) , road safety is not only about protecting occupants and promoting driver assistance systems. It also

concerns better post-crash safety management, a sphere known as tertiary safety. It is crucial that first responders know what they should and

should not do at the scene of an accident. Intervention within the so-called ‘golden hour’ is critical, and rescuers need quick and easy access to

clear information on a vehicle's construction to safely remove individuals from a crash site. For this reason, Brand IVECO has developed specific

rescue sheets and emergency response guides, which are available in the Rescue Material section of its website. Compliant with the ISO 17840

standard (defining information for first and second responders) and available in multiple languages, rescue sheets are standardised summary

documents containing crucial information to help rescuers extract occupants quickly and safely. Rescue guides, on the other hand, provide more

detailed information that is used to train first responders, with a particular focus on alternative fuel vehicles.

When designing new products, Iveco Group's brands pay close attention to vehicle ergonomics to enhance usability for all end users, including

drivers as well as passengers. This is even more important when it comes to bus passengers, with every effort made to ensure accessibility,

especially for those who are vulnerable (such as the elderly, people with disabilities, and children).

Customers

A key factor in managing customer expectations is the effective handling of customer relations across the board, which includes responding

promptly and clearly and ensuring accessible channels for information requests and problem reporting. This is crucial for achieving long-term

success, as it directly impacts customer satisfaction levels. Equally important is enabling customer feedback and suggestions, which help identify

necessary changes to enhance existing product ranges and guide the development of new product lines to meet future market needs. This fosters

trust and is viewed by stakeholders as an opportunity to promote efficient equipment use while minimising disruptions in case of issues.

Dealers

Dealers act as the customers' first point of contact, offering advice on the best purchasing options and helping them invest the right amount of

capital, time, and resources in products that best meet their business needs. This relationship must be one of mutual trust, whereby customers

can depend on prompt assistance and minimum downtime. This is why the Group invests in, and works hard at, continuously improving the

customer experience (CX), redefining the customer journey as needed within each of its brand networks through targeted projects: these include

the Retail Excellence Programme, aimed at improving the sales process, and the Digital Job Card initiative, related to service delivery. Always

seeking to enhance their productivity, customers need practical advice on the best solutions to address their business needs. With this in mind,

Iveco Group's product distribution network is structured to suit customer priorities, with its brands' websites helping customers identify the most

appropriate vehicles and equipment to buy. The dealer and service network of brands IVECO, IVECO BUS, and ASTRA is made up of about

1,585 sales points and 3,550 service points. The Network Department is responsible for implementing specific dealership development

programmes, which enable the Group’s partners to offer customers the best possible service. This contributes to the network's growth while

making it stronger and more competitive.

10.2 POLICIES RELATED TO CONSUMERS AND END USERS (S4-1)

As stated in Iveco Group's Code of Conduct, ensuring product safety for customers is one of the Group's fundamental objectives and key

responsibilities, which is why every effort is made to deliver extremely safe, reliable, and high-quality products and services. Furthermore, since

the safety of end users is a top priority, Iveco Group is also fully committed to ensuring automotive cybersecurity for all its vehicles, given that

active safety systems are increasingly reliant on telematics and are therefore at risk of exposure to cyberattacks. For these reasons, the Group

has adopted a Product Safety, Security, and Technical Compliance Policy (PSSC), which underscores its commitment to product safety and

cybersecurity, as part of a broader approach designed to create, maintain, and continuously support a corporate culture of product safety,

security, and technical compliance that goes beyond regulations.

No significant changes to the policies were made during the reporting year.

Board Report Sustainability Statement 116

10.2.1 Health and Safety Policy

The Iveco Group Health and Safety Policy regulates those activities that generate the greatest impact and/or potential risk with regard to the

ESRS S4 sub-sub-topic ‘Health and safety’, and supports the Group in reaching its sustainability targets and ambitions.

One of Iveco Group's core commitments is to protect and promote the health and safety of its employees and customers. This commitment

extends to its products, with each Group brand striving to achieve the highest standards in preventive, active, and passive product safety to

safeguard the health and safety of drivers, operators, passengers, and all other road users. These objectives are pursued by:

▪ researching, developing, and adopting functional and technical solutions that enhance product safety performance, including ergonomic

improvements

▪ conducting studies and research to explore and develop safer and more sustainable materials and compounds

▪ providing information on safe use through Owner and Maintenance Manuals and offering training programmes focused on the safe and correct

use of products.

The Health and Safety Policy applies to Iveco Group N.V. and its subsidiaries, to the directors, officers, and employees of such entities, and to

those acting for or on behalf of such entities. Iveco Group's Board of Directors endorses the principles of this policy and oversees its

implementation, the responsibility for which lies with the Senior Leadership Team (SLT), tasked with developing appropriate operational

procedures and ensuring adequate allocation of resources and professional expertise. The policy is available on the corporate website in 7

languages (Czech, English, French, German, Italian, Portuguese, and Spanish).

10.2.2 Product Safety, Security, and Technical Compliance Policy

Iveco Group's Product Safety, Security, and Technical Compliance Policy (PSSC) regulates those activities that generate the greatest impact and/

or potential risk, and supports the Group in reaching its sustainability targets and ambitions. Iveco Group considers the personal safety of end

users to be of the utmost importance, and recognises that the ineffective management of design and production processes could affect product

quality and risk compromising the safety and/or satisfaction of drivers and passengers. The PSSC Policy underscores the Group's commitment to

designing, validating, manufacturing, selling, and supporting safe and secure products that comply with or exceed the requirements of all

applicable laws, and to safeguarding end users against cyberattacks by mitigating related risks. Iveco Group considers this approach a

prerequisite for conducting responsible and sustainable business, and essential to building and maintaining public trust in both its products and

the Group itself. The PSSC Policy was approved by the Product Safety, Security, and Compliance function. It applies to Iveco Group N.V. and its

subsidiaries, and to the directors, officers, and employees of such entities. The Senior Leadership Team (SLT) is responsible for monitoring

compliance with the policy, updating it when necessary, and reporting on relevant progress.

10.3 ENGAGING END USERS ON IMPACTS (S4-2)

The Operator's Manual (OM) represents a direct communication channel between Iveco Group's brands and end users. It contains key product

information, making it an integral part of the product itself. These manuals provide extensive details on safe product use and guidance to minimise

environmental impacts, including proper disposal practices for lubricating oils and additives, as well as strategies to reduce fuel and energy

consumption and pollution through efficient product use.

Each manual contains comprehensive information on:

▪ product identification data

▪ product start-up and operation

▪ correct vehicle manoeuvring

▪ correct use of the vehicle equipment provided – e.g., fixed-body trucks, tail lifts

▪ correct use of advanced driver assistance systems (ADAS) – e.g., lane departure warning systems (LDWS)

▪ safe product use – to avoid risk of injury and/or of serious damage to the vehicle and to safeguard the environment

▪ human-machine interaction (controls and devices)

▪ on-board equipment

▪ telematics features

▪ technical features

▪ periodic checks and scheduled maintenance

▪ refuelling.

Brand IVECO offers fleet managers services such as fuel consumption monitoring, mission assignment and planning, route optimisation, and the

monitoring of parameters for safe driving. Additionally, the on-board systems generate specific reports on fuel consumption, tyre pressure, and

driving style, which help optimise vehicle performance and on-board safety.

(115) Belgium, Bulgaria, Czech Republic, France, Ireland, Italy, Luxembourg, the Netherlands, Poland, Portugal, Romania, Slovakia, Spain, and the UK.

Board Report Sustainability Statement 117

Understanding that the human factor plays a critical role in accident prevention, IVECO's portfolio of digital services includes the unique Safe

Driving suite, with features designed to help customers develop a safer driving style. This on-board system monitors a set of key performance

indicators (KPIs) and generates regular reports to assist both drivers and fleet managers by providing feedback on driving performance. This

enables fleet managers to analyse trends at fleet level and identify driving style improvement areas, fostering a culture of safe driving among fleet

drivers to enhance road safety. The Safe Driving suite is designed to increase the driver's risk awareness, improving safety by reducing accidents

and, consequently, injuries to people and damage to transported goods and vehicles. Safe Driving Reports summarise fleet KPIs in 3 categories:

▪ Dynamics – which focuses on harsh steering, acceleration, stability control, and handbrake use while driving

▪ Collision Risk – which looks at behaviours potentially contributing to accidents, such as harsh braking or insufficient safety distance between

vehicles

▪ Compliance – which covers regulations on speed, driving hours, and maximum legal weight limits for vehicles.

The Safe Driving suite is currently available on Group vehicle models that are equipped with a Connectivity Box, and information on the system's

features is easily accessible through the IVECO portal.

10.4 CONSUMER AND END USER ACTIONS (S4-3, S4-4)

End Users

Each Iveco Group brand is responsible for managing customer relations and for setting its own guidelines, while contributing to fulfilling the

Group's core objective and key responsibility of delivering extremely safe, reliable, and high-quality products to end users. For this reason,

everyone at Iveco Group is expected to comply with the safety standards in place, taking appropriate steps to identify, correct, and prevent any

non-compliance. This means that any vehicle safety issues must be immediately reported to a supervisor, the Compliance or Legal departments,

or via the Compliance Helpline.

Iveco Group's quality control process includes a reporting procedure for product safety problems that allows Group employees as well as the

service network to notify any product safety issues found. Employees can report events involving products via a dedicated section on the

corporate Intranet, with all reports reviewed and duly processed by the Current Product Management (CPM) team. In addition, to speed up the

reporting of potential quality problems, the service network is provided with specific Incident Reporting Guidelines.

If deemed necessary, the decision to launch a corrective action – known as a Product Improvement Deployment (PID) – is made by the CPM

team, taking technical factors into account as well as the PID's impact on customers. The CPM team works with the Vehicle Conformance Team

to evaluate the safety aspects of each PID using state-of-the-art tools and methodologies, such as safety risk assessments, and determines

whether a safety recall campaign is necessary based on the index obtained. If a PID is launched, Iveco Group ensures full transparency by

notifying customers and the relevant authorities. Once approved, the recall campaign is launched and released to the service network, ensuring

swift execution to minimise customer impact and vehicle downtime.

Recall campaigns fall under the Group's product quality control process and involve all customer-facing functions, including brand organisations

and dealers. If a campaign involves vehicle repairs, customers are informed about the work involved through various programmes and

communication channels. The Customer Uptime Centre is responsible for overseeing this process for the countries within its remit(115) and for

reaching out to affected customers. Each market concerned sends the Centre notifications about impacted vehicles, type of recall campaign, and

launch dates, as well as certified translations of recall letters. The affected customers are contacted via a dedicated portal or by letter and email.

Countries outside the remit of the Customer Uptime Centre are handled by local partners and dealers.

As regards the PIDs launched in 2024, 14 were related to safety and regulatory matters.

As per its Product Safety, Security, and Technical Compliance (PSSC) Policy, Iveco Group has established its own Cybersecurity Management

System (CSMS), which ensures security is built into the design of vehicles to provide protection throughout their entire lifespan, thus minimising

their exposure to the risk of cyberattacks. The CSMS is certified according to UN Regulation No. 155, which defines uniform provisions for the

approval of vehicles with regards to cybersecurity and the associated management systems. Additionally, the most innovative cybersecurity

technologies are integrated into new vehicles, with structured processes implemented across the entire development chain, as well as from

production to post-production.

Customers

Customer experience management (CXM) begins with the customer journey, which consists of a series of key touchpoints reflecting every

interaction between customers and the Group before and after the purchase of Iveco Group products and services – from initial awareness to use,

loyalty, and advocacy. The CXM process is overseen by a central team, responsible for standardising the criteria and procedures for managing

customer satisfaction while respecting specific business needs, and for ensuring that any reported issue is duly addressed by those responsible

for the relevant touchpoints on the customer journey.

Board Report Sustainability Statement 118

Customers can count on Iveco Group's Customer Uptime Centre, which provides support in 55 countries across Europe and South Africa, in 34

languages, handling approximately 4.1 million contacts per year via the many channels available to each brands' customers (phone, email, mobile

apps, and websites). Over time, the Customer Uptime Centre has expanded its approach to meeting customer needs, going from being simply

reactive to issues when reported (e.g., via the Assistance Non-Stop service), to offering proactive and predictive services. Proactive support

entails using telematics systems to detect vehicle issues, notifying customers and promptly providing assistance and solutions. Predictive support

leverages fault code alerts to foresee potential issues, and notifies customers accordingly to avoid any unscheduled vehicle downtime.

Assistance Non-Stop (ANS) is a round-the-clock, 365 days a year service available to all Iveco Group customers in Europe and South America,

providing immediate technical support with vehicle issues. Upon identifying customer and vehicle location, the operator handling the assistance

request will pre-diagnose the problem and, once the fault has been verified, contact the nearest mechanic, who is directed to the breakdown

location. The operator continues to monitor proceedings until the repair is complete, assisting the mechanic, if needed, and keeping the customer

updated until the vehicle is released (be it on the roadside or at the workshop). The Customer Uptime Centre shares its database with relevant

departments, listing faults by number, type, and breakdown duration and matching them with faulty models. The ANS service can be requested

via a universal toll-free number or through the on-board infotainment system or mobile apps designed for drivers. In the event of a breakdown, the

system serves as a gateway for the driver to send a breakdown assistance request directly from the vehicle to the Customer Uptime Centre,

which in turn can send the driver regular updates on the status of the request and the estimated assistance arrival time.

Dealers

Every Iveco Group dealer is required to meet precise qualitative standards specific to each brand, which are an integral part of the contract that

each dealership signs when joining the Group's network. Compliance with these standards is verified over time through regular dealership visits

and periodic audits conducted by Iveco Group representatives in their area of competence or by third-party companies. Any non-conformities

identified are addressed through action plans defined and agreed upon with the relevant dealer, with the respective schedules established as

needed by the department overseeing the IVECO network. Updates on compliance status are provided to dealership owners through periodic ad

hoc meetings or events.

New dealers receive guidelines on dealership facilities, appearance and visual identity, exterior and interior layouts, furnishings, posters, and staff

uniforms. Detailed indications are also provided on other aspects such as sales, service, and spare parts, to help dealers define outlet size,

optimise workflows, deliver the desired brand experience, acquire necessary equipment (IT and special workshop tools), and ensure appropriate

staffing levels. The guidelines define key performance indicators (KPIs) for each line of business (such as downtime response times and

management procedures for Product Improvement), while also applying international best practices. They also outline training requirements for

dealership personnel, specifying the number of hours and types of courses provided by Iveco Group. Induction training and support are delivered

to new dealerships by Group experts in areas such as network development, sales, after-sales, and financial services. In addition, dealers may

also request support from their market-specific Training function, and access many online training courses tailored to each role.

Each Group brand implements incentive programmes to reward, among other things, best-in-class performance across a wide range of

operational and performance criteria. Developed in line with global market strategies, their main objective is to drive business growth and help

contribute to the continuous improvement in quality standards to ensure outstanding customer service. One of these incentive programmes is the

Annual Dealer Performance Bonus, which sets priorities for dealerships and rewards those that excel in:

▪ customer experience (CX) management and customer satisfaction

▪ use of customer relationship management (CRM) tools

▪ improvement in sales and after-sales processes and services

▪ expansion of maintenance and response (M&R) contracts and connectivity services to enhance predictive assistance.

10.5 CONSUMER AND END USER METRICS AND TARGETS (S4-5)

End Users

Iveco Group's voluntary commitment to the material sustainability matters Product quality, safety, and accessibility and Digitalisation and

connectivity (the latter being entity-specific) is reflected by the strategic sustainability target incorporated into the Strategic Business Plan: to

ensure that 100% of new vehicles manufactured in Europe are equipped with Level 2 ADAS by year-end 2026, and with additional advanced

functions such as Adaptive Cruise Control (ACC) with Stop & Go, Corrective Steering Function (CSF), and Lane Centring (LC). This target is in

line with the Product Safety, Security, and Technical Compliance (PSSC) Policy. Its main objective is to maintain high standards in the prevention

of road accidents, reflecting Iveco Group’s broader commitment to offering customers a range of products that ensure the safety of end users and

road users alike. Given the intrinsic nature of this target, establishing a base year is not feasible.

For further details on:

▪ the target definition process

▪ stakeholder involvement in target setting

▪ target base year and applicable period

▪ target monitoring and progress during the year

Board Report Sustainability Statement 119

please refer to the Sustainability Plan in 1.6 Strategy, Business Model, and Value Chain.

Customers

To better understand the overall customer experience, the Group also uses the Net Promoter Score (NPS), which is the most commonly used

methodology for tracking and enhancing customer satisfaction due to its simplicity, scalability, and adaptability across industries. Its use of a

single question – how likely a customer is to recommend a given brand or product to a friend or relative (on a scale of 0 to 10) – makes the NPS

the most effective predictor of revenue growth. The NPS is the main indicator within Brand IVECO's Customer Experience Management (CXM)

programme. Customer feedback is collected and circulated within the company as quickly, effectively, and widely as possible, along with the

status of KPIs, to obtain a clear picture of customer satisfaction at all times. Beyond this, the CXM programme encourages customer inclusion

and engagement, as the single NPS question elicits emotion-based customer assessments, indicative of their loyalty and sense of belonging to

the Brand. The feedback collected through the NPS survey is also used to improve products and services, serving as a valuable tool for involving

customers indirectly in the company's decisional processes. The importance of the NPS is underscored by the strategic sustainability target

incorporated into the Strategic Business Plan in 2021 for IVECO Trucks: to achieve a 25% increase in NPS by year-end 2026 (compared to

2021). 2024's results were in line with the expected progress, and the Group remains highly committed to leveraging customer feedback to shift

from a reactive approach to a proactive one. For further details on:

▪ the target definition process

▪ stakeholder involvement in target setting

▪ target base year and applicable period

▪ target monitoring and progress during the year

please refer to the Sustainability Plan in 1.6 Strategy, Business Model, and Value Chain.

Dealers

The qualitative standards outlined in dealership contracts are monitored through the IVECO Dealer Network Assessment (IDNA) system, which

provides for periodic audits to verify the compliance of IVECO dealers, sub-dealers, and authorised workshops. The system collects all audit data,

enabling compliance analysis and the definition and implementation of action plans to address any non-conformities. In Europe, in 2024, 20% of

IVECO dealerships were audited by either internal brand auditors or third parties. The Group's voluntary commitment to dealership management

is reflected in its target to audit 20% of dealerships within the current perimeter each year, ensuring that 100% of them are audited for quality

standards by year-end 2028. Furthermore, since the aim is to extend the audit perimeter in 2025 to Africa and Middle East (AME), the total

number of dealers audited annually will increase accordingly as the perimeter continues to expand. This target is designed to ensure that

dealerships comply with IVECO's contractual qualitative standards, so as to deliver a consistent level of service to customers.

Board Report Sustainability Statement 120

11. BUSINESS CONDUCT (G1)

11.1 APPROACH TO THE SUSTAINABILITY MATTER (ESRS 2, IRO-1)

Iveco Group's materiality assessment identified Business conduct and Sustainable supply chain as material sustainability matters, both linked to

ESRS G1.

Business conduct is linked to the following ESRS G1 sub-topics:

▪ ‘Corporate culture’

▪ ‘Protection of whistleblowers’

▪ ‘Corruption and bribery’ (including the sub-sub-topics ‘Prevention and detection including training’ and ‘Incidents’)

▪ ‘Political engagement and lobbying activities’.

The expected medium-term impacts related to Business conduct were identified as positive and described by stakeholders as follows: “The

development of a corporate culture based on principles of ethics and integrity contributes to improving employees' sense of purpose and

motivation”.

Meanwhile, Sustainable supply chain is linked to the ESRS G1 sub-topic ‘Management of relationships with suppliers including payment

practices’. The expected medium-term impacts related to this sustainability matter were identified as positive and described by stakeholders as

follows: “An ongoing dialogue with suppliers and the dissemination of sustainability principles contribute to improving the supply chain's ESG

performance, thus reducing negative environmental and social impacts”. The expected short-term impacts, on the other hand, were found to be

negative, described by stakeholders as follows: “The inadequate management of supplier relationships, especially with regard to payment

practices, affects suppliers' business performance, welfare, and growth”.

The ultimate responsibility for business conduct at Iveco Group lies with the Board of Directors (for information on the role of the Board of

Directors and its Committees, see 1.2 The Board of Directors and its Committees).

11.2 POLICIES RELATED TO BUSINESS CONDUCT (G1-1)

Iveco Group considers corporate culture to be of the utmost importance, as its development based on principles of ethics and integrity enhances

employees' sense of purpose and motivation. The Group strongly believes that long-term success depends on its ability to do business that is

socially responsible, ethical, and compliant with the laws of each country of operation, which is why all its actions are guided by specific

compliance and ethics policies. This robust framework of policies is also a reflection of the Organisation's broader commitment to creating

sustainable long-term value for all stakeholders, which is only attainable by ensuring full respect for fundamental human and labour rights and by

addressing key operational aspects assessable under the ESRS G1 standard, as further explored in the following sections.

11.2.1 Code of Conduct

The Iveco Group Code of Conduct regulates those activities that generate the greatest impact and/or potential risk with regard to the ESRS G1

sub-topic ‘Corporate culture’, and supports the Group in reaching its sustainability targets and ambitions. The Code of Conduct is one of the pillars

of Iveco Group's Corporate Governance, which regulates decision-making processes and the approach used by Organisation and employees

alike in their interactions with all stakeholders. It outlines the values of fairness and integrity that Iveco Group upholds and promotes, deemed

essential drivers of long-term value creation and social and economic development. Reflecting its commitment to the highest standards across all

operations at all times, the Code also underscores Iveco Group's commitment to fair employment practices, workplace safety, environmental

stewardship, and respect for the communities in which it operates, in full compliance with applicable legislation. The Board of Directors is

responsible for overseeing the implementation of Iveco Group's Code of Conduct and other corporate policies, ensuring compliance while

conveying the Group's values and expectations as clearly and explicitly as possible. The Code of Conduct applies to all members of Iveco

Group's Board of Directors, to all employees of Iveco Group N.V., to all of its subsidiaries and joint ventures in which it holds a controlling interest,

and, in principle, to anyone acting for or on behalf of the Organisation. Additionally, Iveco Group makes every effort to circulate the Code's

principles to each of its suppliers, consultants, and any external third party with whom it has a business relationship. The Code of Conduct

addresses topics such as the environment, health and safety, antitrust/competition law, anti-corruption measures, data privacy, internal controls,

human resources management, local communities, and respect for human rights – setting out the principles and ethical values that guide the

Group's Behaviours and shape its culture in the conduct of its business, as well as the standards of quality and integrity expected from anyone

collaborating with the Organisation. For information on Iveco Group's system for monitoring the Code of Conduct and compliance policies, see

11.3 Business Conduct and Corporate Culture. The Code of Conduct, available in 7 languages (Czech, English, French, German, Italian,

Portuguese, and Spanish), can be viewed and downloaded from Iveco Group's corporate website and Intranet, with hard copies circulated

internally as needed. Among other things, the Code addresses the ethical aspects of economic, social, and environmental issues, with explicit

reference to the UN's Declaration of Human Rights, the relevant International Labour Organization (ILO) Conventions, and the OECD Guidelines

for Multinational Enterprises. The Code also underscores Iveco Group's commitment to tax compliance through the implementation of a Tax

Control Framework and a cooperative, transparent approach to tax authorities, as well as its commitment to fostering diversity, equity, and

inclusion (DEI) in the workplace, with great care taken to use inclusive language, consistent with the Group's DEI Playbook.

Board Report Sustainability Statement 121

11.2.2 Anti-Corruption Policy: preventing and detecting corruption and bribery

The Iveco Group Anti-Corruption Policy regulates those activities that generate the greatest impact and/or potential risk with regard to the ESRS

G1 sub-topic ‘Corruption and bribery’, and supports the Group in reaching its sustainability targets and ambitions by promoting transparency and

accountability. The policy defines clear responsibilities and procedures to ensure full compliance with applicable anti-corruption laws and

regulations worldwide. It guides employees' conduct to prevent unethical and illegal acts, while raising awareness of potential risks that could

impact both individuals and the Group. Improper payments, gifts, discounts, or inducements to government officials or other third parties – and/or

the inaccurate recording of such transactions in the Group's books and records – not only violate anti-corruption laws and corporate policies, but

also jeopardise Iveco Group's reputation. The Organisation's culture of integrity requires all employees to actively collaborate in monitoring the

policy's enforcement, and to set an example of ethical conduct by reporting any potential violations. These can be reported by employees to their

managers, to the Human Resources or the Legal, Compliance & Corporate Governance departments, or via the Compliance Helpline. As stated

in the Anti-Corruption Policy, Iveco Group adopts a zero tolerance approach to all forms of corruption, including influence peddling. This

encompasses paying, offering, promising, requesting, or accepting anything of value to obtain or retain an improper business advantage or to

improperly influence someone's actions in their business or official capacity. Particular emphasis is placed on bribery involving public officials,

representatives of international organisations, and any other parties associated with public officials, private entities or individuals as provided for

by applicable laws. The Anti-Corruption Policy adheres to the United Nations Convention against Corruption (UNCAC). It applies to Iveco Group

N.V., its subsidiaries, and joint ventures in which it holds a controlling interest, to the directors, officers, and employees of such entities, and to

those acting for or on behalf of such entities. The ultimate responsibility for compliance at Iveco Group lies with the Senior Leadership Team

(SLT), specifically the Chief Legal & Compliance Officer and Head of Corporate Governance, accountable for monitoring compliance with the

policy, updating it as necessary, and reporting on progress. The Compliance function is tasked with the daily implementation of the policy,

ensuring that the Group's standards are consistently upheld. Furthermore, every Iveco Group manager is responsible for ensuring that employees

are aware of the policy and that the latter is enforced across operations within the manager's area of responsibility. For information on Iveco

Group's system for monitoring the Code of Conduct and compliance policies, see 11.3 Business Conduct and Corporate Culture. The policy,

available on the corporate website in 7 languages (Czech, English, French, German, Italian, Portuguese, and Spanish), has been shared with all

Group employees and senior management worldwide.

11.2.3 Speak Up Policy

The Iveco Group Speak Up Policy regulates those activities that generate the greatest impact and/or potential risk with regard to the ESRS G1

sub-topic ‘Protection of whistleblowers’, and supports the Group in reaching its sustainability targets and ambitions. The policy underscores the

importance of speaking up, outlining the Organisation's reporting channels and the measures in place to protect from retaliation those who speak

up in good faith (whether employees or stakeholders) as well as those assisting in investigations. The Speak Up Policy applies to Iveco Group

N.V. and its subsidiaries, to the directors, officers, and employees of such entities, to stakeholders or external third parties entering into a

relationship with the Organisation (such as customers or suppliers), and to all those engaged in activities on behalf of, or in the interest of, the

Group (such as contractors or temporary workers). The ultimate responsibility for compliance at Iveco Group lies with the Senior Leadership Team

(SLT), specifically the Chief Legal & Compliance Officer and Head of Corporate Governance. The Compliance function is tasked with the daily

implementation of the policy, ensuring that the Group's standards are consistently upheld. The policy, available on the corporate website in 7

languages (Czech, English, French, German, Italian, Portuguese, and Spanish), has been shared with all Group employees and senior

management worldwide. All managers and supervisors are responsible for encouraging the reporting of potential compliance violations by training

their teams and maintaining an ‘open door’ policy. They are expected to lead by example to foster a culture that addresses whistleblower

concerns and any potential compliance violations. They are also required to promptly report any act of retaliation against whistleblowers, reflecting

the Group's commitment to their protection. Similarly, all employees are responsible for promptly reporting any such violations of the law, the

Code of Conduct, or corporate policies through the designated channels. They are also required to report any acts of retaliation they become

aware of against themselves, other whistleblowers, or anyone cooperating in an investigation. To this end, Iveco Group has established a

Compliance Helpline – a global reporting tool available in 15 languages managed by an independent third party – providing employees,

customers, suppliers, and other external third parties with a dedicated means to report potential violations of applicable laws, the Code of

Conduct, or corporate policies. For information on Iveco Group's system for monitoring over the Code of Conduct and compliance policies, see

11.3 Business Conduct and Corporate Culture.

Board Report Sustainability Statement 122

11.2.4 Anti-Retaliation Policy

The Iveco Group Anti-Retaliation Policy regulates those activities that generate the greatest impact and/or potential risk with regard to the ESRS

G1 sub-topic ‘Protection of whistleblowers’, and supports the Group in reaching its sustainability targets and ambitions. The policy underscores

the Organisation's commitment to protecting whistleblowers and anyone cooperating in an investigation by creating a safe and supportive

environment that encourages and enables them to raise potential issues or concerns without fear of retaliation. The Anti-Retaliation Policy applies

to Iveco Group N.V. and its subsidiaries, to the directors, officers, and employees of such entities, to stakeholders or external third parties entering

into a relationship with the Group (such as customers or suppliers), and to all those engaged in activities on behalf of, or in the interest of, the

Group (such as contractors or temporary workers). All employees are responsible for promptly reporting any such violations of the law, the Code

of Conduct, or corporate policies through the designated channels. They are also required to report any acts of retaliation they become aware of

against themselves, other whistleblowers, or anyone cooperating in an investigation. The Group protects from retaliation those who speak up in

good faith (whether employees or stakeholders) as well as anyone cooperating in investigations. In Europe, Iveco Group protects whistleblowers

in accordance with the applicable law implementing Directive (EU) 2019/1937 of the European Parliament and of the Council of the European

Union. For information on Iveco Group's system for monitoring the Code of Conduct and compliance policies, see 11.3 Business Conduct and

Corporate Culture. The policy, available on the corporate website in 7 languages (Czech, English, French, German, Italian, Portuguese, and

Spanish), has been shared with all Group employees and senior management worldwide.

11.2.5 Responsible Lobbying Policy

The Iveco Group Responsible Lobbying Policy regulates those activities that generate the greatest impact and/or potential risk with regard to the

ESRS G1 sub-topic ‘Political influence and lobbying activities’, and supports the Group in reaching its sustainability targets and ambitions. It sets

out the main principles, standards, and rules to ensure that Public Affairs activities are fully compliant with applicable laws and with the Iveco

Group Code of Conduct. It also defines key roles and responsibilities to ensure effective policy implementation. The Group is committed to

contributing to the development of industry policies, regulations, and standards by transparently participating in the public debate on key issues.

By addressing key aspects such as authorised representation and compliance, integrity and ethical standards, and political neutrality and

restrictions, the policy ensures all interactions with public authorities are guided by transparency, integrity, fairness, and neutrality. The

Responsible Lobbying Policy applies to Iveco Group N.V. and its subsidiaries, to the directors, officers and employees of such entities, and to

those acting for or on behalf of such entities. The Senior Leadership Team (SLT) is responsible for monitoring compliance with the policy,

updating it as necessary, and reporting on progress. The policy is aligned with the OECD Recommendation of the Council on Transparency and

Integrity in Lobbying and Influence. For information on Iveco Group's system for monitoring the Code of Conduct and compliance policies, see

11.3 Business Conduct and Corporate Culture. The policy, available on the corporate website, has been shared with all Group employees and

senior management worldwide.

11.2.6 Supplier Code of Conduct

The Supplier Code of Conduct regulates those activities that generate the greatest impact and/or potential risk with regard to the ESRS G1 sub-

topic ‘Management of relationships with suppliers including payment practices’, and supports the Group in reaching its sustainability targets and

ambitions. The management of supplier relationships is of paramount importance at Iveco Group, since ongoing dialogue and the dissemination

of sustainability principles improve ESG performance across the supply chain (thereby reducing negative environmental and social impacts), while

the unsatisfactory management of such relationships, especially with regard to payment practices, can hinder suppliers' business performance,

welfare, and growth. The Supplier Code of Conduct stipulates suppliers' compliance with local legislation and their respect for:

▪ labour and human rights

▪ rejecting any form of forced or child labour

▪ guaranteeing fair working conditions, working hours, and wages

▪ recognising the right to freedom of association in line with applicable laws

▪ safeguarding employee health and safety

▪ guaranteeing equal opportunities and the absence of potentially discriminatory policies

▪ environmental protection

▪ optimising the use of resources (including energy and water) and minimising polluting and greenhouse gas emissions

▪ designing and developing products while mindful of their environmental impact and potential for reuse or recycling

▪ responsibly managing waste treatment and disposal

▪ eliminating the use of potentially hazardous substances

▪ adopting logistics procedures while mindful of their environmental impact

▪ trade restrictions/export controls

▪ sourcing minerals responsibly

▪ business ethics

Board Report Sustainability Statement 123

▪ complying with regulations on improper payments

▪ ensuring accurate and complete bookkeeping

▪ respecting intellectual property rights

▪ disclosing conflicts of interest

▪ respecting principles of fair competition and antitrust regulations

▪ respecting anti-money laundering legislation.

The Supplier Code of Conduct applies to Iveco Group's entire supply chain, including all persons and entities (each referred to as a ‘Supplier’) that

sell any goods or services to the Organisation or its subsidiaries, outlining the standards to be upheld in their daily business activities. Iveco

Group's Board of Directors is responsible for overseeing the implementation of the Supplier Code of Conduct, ensuring compliance while

conveying the Group's values and expectations as clearly and explicitly as possible. Suppliers are required to work with Iveco Group to enforce

the Code itself, and to pass on its principles to their respective employees, subsidiaries, affiliates, and subcontractors. To ensure the consistent

alignment of the supply chain and purchasing practices with the Supplier Code of Conduct, suppliers undergo an Ethical Check every 3 years.

This assessment is conducted by an external third party, using a dedicated reporting system that allows the monitoring of any potential issues that

may require further clarification or investigation. This periodic monitoring is regulated by corporate policies and procedures designed to ensure

supplier compliance. The Organisation reserves the right to terminate its business relationship with any Supplier that is unwilling or unable to

ensure compliance with the Group's performance standards. The Supplier Code of Conduct is aligned with the United Nations' (UN) Universal

Declaration of Human Rights, the International Labour Organization (ILO) Standards, and the UN Convention against Transnational Organized

Crime. The Supplier Code of Conduct is available in 7 languages (Czech, English, French, German, Italian, Portuguese, and Spanish) on both the

corporate website and Supplier Portal.

11.3 BUSINESS CONDUCT AND CORPORATE CULTURE (G1-1)

Integrity and ethics are the principles on which Iveco Group is founded, and are intrinsic to all its business practices. One of the Group's 5 Values,

We do what is right, is a perfect example of such principles, recognising that acting with integrity requires vigilance and commitment. Iveco group

also believes these principles boost its competitiveness, serving as a stepping stone to its sustainable growth and to building a reputation that

customers, employees, and other stakeholders can trust and rely on. Furthermore, Iveco Group's robust culture of integrity and ethics is key to

preventing ethics violations. While the Group strives to implement these principles in everything it does, they are particularly important when it

comes to compliance with regulations and standards that promote sustainable development (such as those related to value distribution,

progressive taxation, cash transfers, and investments in its people), or that support inclusive growth. To further strengthen its integrity, the

Organisation has adopted the following control tools, implemented by the appropriate departments:

▪ whistleblowing procedures, overseen by the Compliance function

▪ periodic auditing, overseen by the Internal Audit function

▪ monitoring of potential and actual disputes, overseen by the Legal Department.

Whistleblowing Procedures

At Iveco Group, employees are encouraged to actively engage in the detection and prevention of misconduct by reporting any activity that violates

applicable laws, the Code of Conduct, or corporate policies. Reporting potential violations gives the Group the opportunity to investigate matters

and take corrective action, reducing the risk of potential harm to the employee in question, co-workers, the Group itself, or the communities in

which it operates. To this end, the Group has established a Compliance Helpline, a global reporting tool available in 15 languages managed by an

independent third party. It was set up following consultation with representatives from many different functions, including Human Resources,

Internal Audit, Legal, and Compliance. This platform provides employees, customers, suppliers, and other third parties with a dedicated means to

report potential violations of applicable laws, the Code of Conduct, or corporate policies.

As indicated in the Iveco Group Speak Up Policy and on the corporate website, reports can be submitted in several ways (including anonymously,

where permitted by law):

▪ in person to a manager or other Group representative

▪ through the corporate website's Compliance Helpline section

▪ through the dedicated app, available for Android and iOS

▪ through dedicated phone lines (calls are directed to a voice mailbox managed by a third party; messages are then transcribed and sent to the

Organisation).

Iveco Group employees have an obligation to report misconduct. The Compliance Helpline is an important tool meant to encourage reporting and

foster a culture of individual and collective responsibility for compliance and ethics. This culture is also promoted via the Group's Speaking Up

global communication campaigns, rolled-out in 2022 and targeting employees worldwide.

Board Report Sustainability Statement 124

In 2024, a Group-Wide communication was circulated to celebrate World Whistleblowers Day, emphasising the importance of a speak-up culture

and of the Compliance Helpline. Additionally, the Organisation held a live stream event, open to all employees, called Conversations with Legal

and Compliance on Whistleblowing and Speak Up Culture. Group policy strictly prohibits any form of retaliation against anyone reporting a

concern in good faith. As a company incorporated under Dutch law, Iveco Group workers within the European Union acting as whistleblowers are

protected against retaliation in accordance with the applicable law transposing Directive (EU) 2019/1937 of the European Parliament and of the

Council and in compliance with the Group's Anti-Retaliation and Speak Up policies (see 11.2.4 and 11.2.3). The Group responds to every report

submitted through the Compliance Helpline. Training on the Compliance Helpline is included in the Code of Conduct training course.

A global case management system, implemented in conjunction with the Compliance Helpline, helps ensure the accurate tracking and timely

resolution of investigations, which are primarily conducted by the Internal Audit, Human Resources, Legal, and/or Compliance functions. The

materiality of all reported matters is evaluated according to criteria approved by the Ethics & Compliance Committee. Matters defined as material

are escalated to the Investigation Oversight Sub-Committee (IOS), comprising the Chief Legal & Compliance Officer and Head of Corporate

Governance, the Chief Human Resources Officer, and the Chief Risk and Internal Audit Officer, which oversees the investigation process and

agrees on the necessary corrective actions and disciplinary measures. In general, matters with the potential to incur penalties or monetary losses

in excess of €100,000, or that involve allegations against a director or above, or that relate to bribery, fraud, trade compliance, accounting or

internal controls, are all considered material. Summaries of all such material matters, which are collected by geographic region, are regularly

reported to the Ethics & Compliance Committee and the Audit Committee.

In 2024, 31 cases were classified as material and reported to the IOS, the Ethics & Compliance Committee, and the Audit Committee. During the

year, the Chief Compliance Officer provided the Audit Committee with a quarterly update on the Group's compliance and ethics activities.

Information regularly communicated to the Audit Committee relates to: training activities, risk assessment results, emerging compliance risks,

updates on material compliance and ethics projects, Compliance Helpline reports and related statistics, the status of closed and ongoing

investigations, and a summary of material matters. If a reported matter is substantiated, the Group implements appropriate disciplinary action, up

to and including termination of employment.

Periodic Auditing

Iveco Group regularly monitors the application of its main compliance policies in each geographic region of operation. Monitoring is carried out by

the Internal Audit Department based on the Annual Audit Plan. Audit results, identified violations, and agreed corrective measures are notified to

the relevant corporate departments and senior management.

In 2024, the Group disclosed the results of 17 internal audits conducted at its main manufacturing and non-manufacturing sites, regarding:

compliance with regulatory requirements for the Financial Services French credit institution, with anti-corruption policies, tax obligations, energy,

environmental, health and safety standards, and with other regulations, as well as the results of investigations into matters reported through the

Compliance Helpline. The audits revealed substantial compliance with the main standards in force. Any violations relating to aspects included in

the Code of Conduct were managed either through appropriate disciplinary action or through action plans to improve internal control procedures.

The Internal Audit Department also implemented a programme to verify the adherence of Iveco Group's dealers and authorised workshops to

vehicle Warranty Manuals, performing 90 third-party dealer audits.

Periodic Audits by Type

Iveco Group worldwide (number)


	2024
Regulatory compliance	15
Whistleblowing	2
Dealers	90
Total	107

Antitrust and Competition

As stated in its Code of Conduct, Iveco Group recognises the critical importance of an open and competitive market, which is why it is fully

committed to complying with all applicable competition and antitrust laws and to scrupulously refraining from business practices that could violate

them (such as the establishment of cartels, price fixing, market divisions, production or sales limitations, tying arrangements, or the exchange of

commercial information or business views). The Code of Conduct expressly indicates that confidential information – such as know-how, trade

secrets, intellectual property, and/or other proprietary information developed by Iveco Group – is a fundamental and critical resource that every

employee is required to protect. This obligation is particularly crucial in the highly competitive markets in which Iveco Group operates, requiring all

Group employees and agents to handle competitively sensitive information with the utmost care to protect it and to adhere to all applicable

competition and antitrust laws. The Group and its subsidiaries are also required to protect the confidentiality of any information they may receive

from external third parties.

Board Report Sustainability Statement 125

Every year, Iveco Group's Compliance and Ethics function collects a statement from a selected number of employees declaring they understand

and adhere to the Code of Conduct (including the antitrust requirements contained therein), and that they have no knowledge of any Code

violation nor of any conflicts of interest that have not already been disclosed to the Organisation.

Iveco Group's Competition Compliance Programme promotes compliance with competition and antitrust laws, raises awareness within the

Organisation of competition law implications for its businesses, and helps identify and minimise the risk of any violations. This programme

encompasses a specific Competition Policy, overseen by the Antitrust Unit of the Legal, Compliance & Corporate Governance (LC&CG)

Department and available on the corporate website. The policy was updated in 2023 to include a set of relevant practical guidelines by subject

matter, and applies to all directors, officers, and employees, as well as to those acting for or on behalf of all Iveco Group companies worldwide. It

sets detailed and stringent rules for dealing with competitors, trade associations, suppliers, and customers, as well as rules for responding to

competition authority investigations, emphasising the need for full cooperation in the event of antitrust or competition investigations or of any

requests for information regarding alleged anti-competitive conduct. The Competition Policy also emphasises the importance of promptly reporting

any actual or suspected policy violations, either to a member of the LC&CG Department or anonymously using the Group's Compliance Helpline.

In 2024, specific training on Antitrust and Competition Law was made accessible to 12,158 employees worldwide (salaried and above).

Additionally, a dedicated in-person training module on antitrust and competition aspects was delivered to the Senior Leadership Team (SLT)

members. Ad hoc in-person training initiatives were also deployed in selected jurisdictions to maintain a high level of understanding of competition

law compliance, with training sessions and workshops tailored to the specific needs of the BUs and markets involved – including three Clean

Team workshops centred on strategic business priorities. In total, 15 training sessions and workshops were held worldwide (both virtually and in

person), involving 452 participants.

The Compliance Policy also sets out rules and principles for managing M&A transactions and dealings with antitrust authorities. In 2024, Iveco

Group was involved in two clearance decisions (i.e., approvals) by the European Commission. Finally, the Antitrust Unit, in coordination with the

LC&CG Department, conducts ongoing compliance risk assessments in line with business strategy and needs, working alongside Enterprise Risk

Management & Internal Audit Department. The Group plans to maintain this approach in 2025 and beyond, focusing on selected jurisdictions

each year for targeted, business-specific training initiatives, which will supplement the general Antitrust and Competition Law course available

online.

Trade Compliance

Iveco Group is a material participant in international trade, an area of increasing focus where laws are complex and dynamic. The Organisation

addresses these challenges by implementing its International Trade Policy, the contents of which also form an important part of the Supplier Code

of Conduct. In accordance with this policy, Iveco Group is committed to complying with all applicable international trade laws and regulations

(including import and export control laws, anti-corruption laws, and sanction programmes). The dedicated Trade Compliance function is

responsible for expanding and diversifying the Group's existing processes (by building on current compliance tools), to address and adapt to such

a dynamic trade environment and any regulatory changes. The function is also tasked with implementing awareness initiatives across the

Organisation to ensure new regulations are properly understood and integrated into business practices.

11.4 CORRUPTION AND BRIBERY (G1-3)

The Anti-Corruption Policy (see 11.2.2) defines clear responsibilities and procedures to ensure full compliance with applicable anti-corruption laws

and regulations worldwide. Iveco Group's good reputation for integrity and honesty, carefully established over many years, is critical to its market

competitiveness. Improper payments, gifts, discounts, or inducements to government officials or other third parties – and/or the inaccurate

recording of such transactions in the Organisation's books and records – not only violate anti-corruption laws and corporate policies, but also

jeopardise Iveco Group's reputation. The Group's culture of integrity requires all employees to actively collaborate in monitoring the policy's

enforcement, and to set an example of ethical conduct by reporting any potential violations. These can be reported by employees to their

managers, to the Human Resources, Legal, Compliance, and Corporate Governance departments, or via the Compliance Helpline.

As stated in the Anti-Corruption Policy, Iveco Group has zero tolerance for all forms of corruption, including influence peddling. This includes

paying, offering, promising, requesting, or accepting anything of value to obtain or retain an improper business advantage or to improperly

influence someone's actions in their business or official capacity. Particular emphasis is placed on bribery involving public officials,

representatives of international organisations, and any other parties associated with public officials, private entities or individuals as provided for

by applicable laws.

In order to prevent and respond to allegations or incidents related to corruption or bribery, a global case management system, implemented in

conjunction with the Compliance Helpline, helps to ensure the accurate tracking and timely resolution of investigations, which are primarily

conducted by the Internal Audit, Human Resources, Legal, and/or Compliance functions. The materiality of all reported matters is evaluated

according to criteria approved by the Ethics & Compliance Committee. Matters defined as material are escalated to the Investigation Oversight

Sub-Committee (IOS), comprising the Chief Legal & Compliance Officer and Head of Corporate Governance, the Chief Human Resources Officer,

and the Chief Risk and Internal Audit Officer, which oversees the investigation process and agrees on the necessary corrective actions and

disciplinary measures. Summaries of all such material matters, which are collected by geographic region, are regularly reported to the Ethics &

Compliance Committee and the Audit Committee. All of Iveco Group's compliance policies related to the aforementioned topics are available in 7

languages (Czech, English, French, German, Italian, Portuguese, and Spanish), and can be viewed and downloaded from the corporate website

and Intranet. The principles and values of good corporate governance established in the Code of Conduct are conveyed to all Group employees

irrespective of their level or role, through periodic training and other communication channels.

(116) Module included in the Code of Conduct training course.

(117) Module included in the Code of Conduct training course.

Board Report Sustainability Statement 126

Iveco Group advocates its Code of Conduct and Supplier Code of Conduct as best practice standards in business ethics among its partners,

suppliers, consultants, agents, dealers, and other third parties with whom it has long-term relationships. Contracts with third parties include

specific clauses requiring recognition of, and adherence to, the fundamental principles outlined in the Code of Conduct and related policies, as

well as strict compliance with applicable laws, particularly those related to bribery and corruption, money laundering, antitrust/competition law, and

other corporate criminal liability laws.

Although Iveco Group does not yet have a specific policy on employee training and development (this will be implemented in future reporting

cycles), it still considers training as fundamental and has a platform dedicated to delivering it, called ON LEARN (for more information, see. 7.11.3

Learning and development).

The 2024 Code of Conduct training course included 2 modules – Anti-Bribery and Anti-Corruption and The Importance of Reporting Harassment

and Preventing Retaliation (which regards the Compliance Helpline) – made available to 12,205 employees worldwide.

The Group also delivered several targeted compliance training sessions on the main issues identified via risk assessments, with a focus on:

▪ Anti-Bribery and Anti-Corruption(116)

▪ Antitrust and Competition Law

▪ Legislative Decree 231/01: Corporate Administrative Liability Management System (training for Italy only)

▪ Compliance Helpline(117) (The Importance of Reporting Harassment and Preventing Retaliation).

Every year, the members of the Board of Directors, Senior Leadership Team (SLT), and certain categories of employees are asked to formally

acknowledge, in writing, that they have read both the Iveco Group Code of Conduct and the Conflict of Interest Policy and understand their

contents. They are also asked to declare any personal interests that might violate the Conflict of Interest Policy. The employee categories

involved in 2024 were managers (all functions), all Procurement employees, and all Sales employees (eligible for the Sales Incentive Plan, or

SIP). Although the specific functions most at risk for corruption and bribery are in the process of being defined, the aforementioned employee

categories are considered to be at higher risk and, as a result, are required to formally acknowledge the Code of Conduct.

Anti-corruption training is a cornerstone of Iveco Group's compliance framework, ensuring employees are informed about applicable laws, the

Anti-Corruption Policy, and the importance of adhering to them. This training ensures they are aware of the various offences and understand the

relevant risks, personal and corporate obligations, preventive measures, and potential sanctions for both individuals and legal entities in the event

of violations. To this end, mandatory anti-corruption training and periodic updates are a contractual requirement for all employees. In 2024, an

online anti-corruption course was delivered globally as part of the Group's Code of Conduct training, targeting all employees (salaried and above),

as detailed in the following table.

2024 Anti-Corruption Training

Iveco Group worldwide (number)


	Managers	All other employees
Training coverage
Total employees with access to training	2,187	10,018
Total employees who completed training	2,094	9,391
Delivery method and duration
Online training (minutes)	15	15
Frequency
How often training is required	Annually	Annually
Topics covered
Definition of bribery	Yes	Yes
‘Things of value’ that may be construed as attempts to corrupt	Yes	Yes
Facilitating payments	Yes	Yes
International anti-bribery and anti-corruption laws	Yes	Yes
Third-party due diligence	Yes	Yes

(118) For more details on the investigation process and the actions taken to address substantiated cases, see 11.4 Corruption and Bribery.

Board Report Sustainability Statement 127

11.5 VIOLATIONS OF BUSINESS CONDUCT (G1-4)

In 2024, the Group responded to and/or investigated 236 new matters, reported through the Compliance Helpline (56% of which anonymously).

Compliance Helpline Reported Matters

Iveco Group worldwide (number)


Matters by category	2024
Questions related to specific business activities and/or Group policies	10
HR issues, including but not limited to general workplace conflicts	106
Discrimination and harassment (including sexual harassment)	50
Business conduct	42
Corruption and bribery	6
Health, safety, and environment	9
Conflict of interest	10
Customer data privacy	—
Money laundering and/or insider trading	—
Accounting and internal controls	1
Other(a)	2
Total	236

(a) From the reports received, it was not possible to determine to which category these cases belong.

Of the 236 reported matters, 41 were duplicates. Of the remaining 195 matters, Iveco Group closed investigations(118) for 152, of which 49 were

substantiated as breaches of the Code of Conduct or of corporate policies (a 32% substantiation rate).

Of the 6 reported cases relating to corruption and bribery , 2 were still under investigation at year end, 1 was unsubstantiated, 1 was partially

substantiated, and 2 were substantiated. Of the 2 substantiated cases, 1 resulted in termination of employment and 1 in remedial training, while

the partially substantiated case led to a policy and process review.

Disciplinary Approach to Substantiated Breaches of the Code of Conduct or Corporate Policies

Iveco Group worldwide (number)


Type of disciplinary action	2024
Termination of employment	9
Disciplinary action	27
Coaching, remedial training or review of the relevant policy/process	12
No action necessary(a)	1
Total	49

(a) The implicated employee voluntarily left the Group.

In 2024, there were no reported legal cases related to bribery or corruption, and no convictions or fines were issued for violations of anti-

corruption and anti-bribery laws.

No anti-corruption or anti-bribery targets have been set because the issue is context-dependent; however, necessary processes have been put in

place to prevent such incidents from occurring.

(119) Compliance policies are available in the ‘Compliance and Ethics’ section of the Group's Intranet portal.

Board Report Sustainability Statement 128

Third-Party Due Diligence Process

Iveco Group implements a Third-Party Due Diligence process using specific web-based third-party screening tools. This process gives the

Organisation more insight into the specific risks posed by the various third parties with whom it does business, based on attributes such as:

location, type of interaction between the third party and Iveco Group, and possible interaction between the third party and government officials in

connection with work it does on behalf of the Group. The process provides a ranking of high-risk third parties representing the Group in the

marketplace (including sales commission agents, trading companies, etc.). Third parties identified as high risk are subject to variable levels of

additional due diligence based on their specific risk profile. The due diligence process ranges from the basic screening of relevant watch lists to

obtaining in-depth corporate intelligence reports from external diligence sources. Within the scope of this process, Iveco Group's Ethics &

Compliance Committee oversees the results of the screenings.

The Group has established a dedicated working group – composed of representatives from Trade Compliance, Financial Services, and HR

Security & Facilities – tasked with evaluating possible enhancements to the existing anti-bribery, anti-corruption, and anti-money laundering

practices and processes, as well as those related to trade compliance, while identifying opportunities to improve, streamline, and rationalise them

in the framework of a risk-based approach.

11.6 POLITICAL INFLUENCE AND LOBBYING ACTIVITIES (G1-5)

Iveco Group's participation in shaping public policy and regulations on issues that affect its business and the communities in which it operates is

essential for developing workable international standards and guidelines, thereby safeguarding the value of its investments. Indeed, this type of

engagement, combined with the promotion of public-private partnerships, is crucial to identifying innovative, shared sustainability solutions built on

high-level standards and guidelines. In its dialogue with governments, international organisations, local authorities, sector and industry

associations, and other stakeholders, the Group contributes its technical expertise and knowledge on policies related to the automotive industry

and other sectors involving the transport of people and goods, with a focus on products, processes, sustainable mobility, and innovation.

Moreover, firmly believing in contributing to society's technological advancement, it collaborates with public institutions, universities, and other

organisations on research and development into innovative solutions in the fields in which it operates. This proactive approach to external

institutions enables the Organisation to focus on new product development and business opportunities early on, and create competitive business

conditions that are sustainable over the long term.

The ultimate responsibility for Iveco Group's Public Affairs lies with the Senior Leadership Team (SLT). The Public Affairs function is responsible

at global level for overseeing advocacy activities, supporting engagement with institutions and stakeholders, and interacting daily with the

departments and functions of both the Group and its brands. In detail, these responsibilities include:

▪ monitoring future policy trends and engaging with public authorities, trade associations, international organisations, the business sector, and

NGOs on the institutional and regulatory decision-making processes that affect Iveco Group's product and operations strategies

▪ advocating with policy makers and other relevant stakeholders

▪ protecting and enhancing the strategies of the Group and its brands by proactively interacting with external stakeholders and participating in

public dialogue

▪ supporting the Group's business goals by addressing specific business issues and identifying opportunities in the context of institutional and/or

international diplomatic relations.

Interest representation is conducted only where permitted by and in strict compliance with applicable laws, including anti-corruption and antitrust

laws, and in full compliance with the Group's Code of Conduct and related policies and procedures. Iveco Group is registered with the European

Transparency Register (ID number 266675445160-69), which is operated jointly by the European Parliament, the Council of the European Union,

and the European Commission and provides information about interest representatives that seek to contribute to the European Union's decision-

making processes; the register also provides a code of conduct to regulate their activities.

In Italy, the Group is also registered with the Italian Transparency Register, set up by the Italian Ministry of Economic Development and adopted

by drawing upon the same model applied across other European institutions, and with the Register of Interest Representatives of the Italian

Chamber of Deputies. In France, Iveco Group brands are also registered with the High Authority for Transparency in Public Life; in Spain, with the

Transparency Register of the Community of Madrid; and in Germany, with the Lobby Register for interest representation in the German

Bundestag and Federal Government. The Organisation abides by the Iveco Group Responsible Lobbying Policy and Policy for US Lobbying

Activities, which are compliance policies(119) implemented in relation to the Code of Conduct that regulate relations with public institutions.

The Organisation's relationships with public and private organisations (including universities and research centres) also fall under the purview of

the corporate Environmental Policy – as such organisations are considered stakeholders and therefore play a key role in supporting the Group's

climate change commitments, in accordance with the objectives of the Paris Agreement. To report potential violations of the Code of Conduct,

corporate policies, or applicable laws, the Group has established a dedicated grievance mechanism, the Compliance Helpline, which can also be

used to report violations specifically related to interactions with public institutions.

The Group is a member of many industry and other associations, and of national and international advocacy organisations, in which it plays a

significant role. In 2024, Iveco Group's membership fees for trade associations, lobbying activities (including climate-related), etc. totalled €1.6

million globally.

Board Report Sustainability Statement 129

Memberships, Contributions, and Other Expenditures

Iveco Group worldwide (€ million)


	2024
Trade associations or tax-exempt groups(a)	1.6
Lobbying, interest representation(b)	—
Political parties (campaigns/candidates)	—
Total	1.6

(a) A trade association consists of companies within the same industry or region that voluntarily collaborate to strengthen advocacy efforts and promote and protect key interests with

relevant institutions and stakeholders. As part of these efforts, various trade associations engage in public affairs activities such as lobbying, in compliance with local legislation and

respective institutional frameworks.

(b) Excluding management overheads related to lobbying activities.

The three largest fees were paid to the European Automobile Manufacturers' Association (ACEA), for approximately €825,000 (of which €120,000

for technical studies), the American Engine Manufacturers Association (EMA), for approximately €162,000, and the Asociación Española de

Fabricantes de Automóviles y Camiones (ANFAC), for approximately €80,000.

Partnering with Trade Associations to Fight Climate Change

As a member of various sector associations, Iveco Group is committed to shaping climate change policies, regulations, and standards for the

capital goods industry, mainly by promoting the use of innovative solutions and vehicles to support the decarbonisation of the transport sector,

and by participating in the institutional and public debate around mitigating climate change and improving air quality. In particular, the Public

Affairs function focuses on increasing the awareness and active participation of institutional stakeholders, the public, and international

organisations with regards to:

▪ the importance of key issues related to Iveco Group's product strategy and advocacy, such as sustainable mobility, alternative fuels and

propulsions (e.g., natural gas, biomethane, hydrogen, and electric vehicles), the reduction of vehicle and manufacturing emissions, transport

decarbonisation, batteries, digitalisation, safety, and autonomous driving

▪ Iveco Group's corporate position on sustainability, climate change, renewable energy, circularity, materials, transportation systems, safety,

artificial intelligence, and product innovation.

In 2024, to foster public debate and policy making on the most material sustainability matters, particularly on tackling climate change, the Group

organised and actively participated in several institutional webinars, conferences, working groups, roundtables, initiatives, and virtual and in-

person meetings. Its efforts to combat climate change at national and global level also included playing an active role as a member of various

industry and multi-stakeholder associations, organisations, business networks, and think tanks, ensuring they operate in accordance with the

objectives of the Paris Agreement and with its decarbonisation roadmap. Indeed, the alignment of such entities with Iveco Group's strategy is

reviewed annually to address, among other things, any inconsistencies between their climate change policies and the Group's own climate

position.

The following are some examples of the main trade associations the Group engaged with during the year that share its position on climate

change.

Trade Association: European Automobile Manufacturers Association (ACEA)

The Group shares ACEA's vision for a sustainable future for the transport sector, supporting a multi-energy approach to decarbonisation that

focuses on carbon-neutral and zero-emission technologies to meet EU goals, while also addressing safety, circularity, materials and substances,

as well as advancements in automated driving, artificial intelligence, connectivity, and smart mobility. Iveco Group is represented both on ACEA's

Board of Directors (BoD) and on its Commercial Vehicle Board of Directors (CV BoD), which are composed, respectively, of the CEOs of the

member companies and the CEOs of the commercial vehicle member companies. The Organisation also participates in ACEA's technical working

groups and task forces, comprising experts from member companies who work directly on tackling safety, materials and substances, trade,

alternative fuels, climate change (focusing on emissions, circularity, alternative fuels, batteries, sustainability), and other key areas. Climate

change is a global challenge that demands collective action and international cooperation, to which the automotive industry will make a key

contribution by pursuing net-zero emissions and carbon neutrality. The European automobile industry, which includes passenger cars, vans,

trucks, and buses, is a world leader in technology and clean vehicles – with regard to both production and use – and Europe's number one

investor in R&D, responsible for 33% of total EU spending on innovation. Much of this goes towards developing fuel-efficient and low- and zero-

carbon technologies, and towards reducing the environmental impact of products and processes. ACEA considers the revision and adaptation of

vehicle regulations (such as those regarding CO2 emissions from cars, vans, and heavy-duty vehicles, Euro 7 standards, circularity, and product

sustainability) as a crucial step in decarbonising road transport and advancing sustainability, circularity, and innovation. It also advocates the

importance of supportive measures and enabling conditions, and of a consistent policy framework, as essential drivers of the energy transition in

road transport.

(120) Initiative of the European Commission and Hydrogen Europe.

Board Report Sustainability Statement 130

Trade Association: Hydrogen Europe

As a member of Hydrogen Europe, Iveco Group actively participates in several of the association's working groups (such as Mobility, Heavy Duty,

Sustainability, Funding and Finance, Advocacy) and in its Technical Committee. The Group also participates in the European Clean Hydrogen

Alliance(120) and its Mobility Roundtable, representing the road transport industry and contributing to the development of a sustainable and

competitive industrial-hydrogen economy in the EU. Moreover, it actively contributes to the association’s H2ero Net Zero strategy, aimed at

removing barriers to investments in hydrogen, influencing policy making, advancing clean hydrogen technologies, and scaling their deployment to

achieve net zero by 2050. Hydrogen Europe brings together various industry players, large companies, and SMEs committed to delivering

hydrogen and fuel-cell technologies. To achieve this objective, the association collaborates with public authorities through its partnership with

Iveco Group and its involvement in both the EU Clean Hydrogen Alliance and Important Projects of Common European Interest (IPCEI). The

association is also actively involved in public-private partnerships (PPP) that support research, technological development, and practical demos of

fuel-cell and hydrogen technologies in Europe. Its main policies underscore the critical role of hydrogen technology in decarbonising the EU's

economy, prioritising timely investments in hydrogen applications and projects to meet the 2030 climate targets. Hydrogen Europe and Iveco

Group are both members of the DG Move Sub-Group of the EU Commission's Sustainable Transport Forum (STF), focused on developing a

hydrogen refuelling infrastructure for light- and heavy-duty vehicles across Europe.

Trade Association: Brazilian Association of Automotive Vehicle Manufacturers (ANFAVEA)

Iveco Group is a member of ANFAVEA, an association comprising 26 members from the passenger car, commercial vehicle, and agricultural

machinery industries. The Group is an active member of ANFAVEA's Board of Directors and of several of its committees (including Heavy Duty,

Environment, Safety, Legislative). The association advocates for decarbonisation in the transport sector, supporting the introduction of a diverse

range of carbon-neutral solutions including biomethane and other biofuels, hydrogen, and electrification. ANFAVEA has taken a leading role in

discussions with the Brazilian government on the development of policies to reduce carbon emissions, and of support measures for the

deployment of biofuels and for advancing the sector's priorities in relation to the ongoing tax reform, particularly focusing on creating a framework

to incentivise the local development of new technologies in collaboration with public institutions, universities, and research centres. As part of this

effort, the Brazilian government launched the MOVER Green Mobility and Innovation Program that, among other things, establishes requirements

for fuel efficiency, recyclability, and safety. ANFAVEA has also taken a prominent stance on supporting fleet renewal initiatives, given that Brazil is

estimated to have over 500,000 trucks and buses that are more than 20 years old. Beyond the considerable environmental repercussions,

vehicles approaching their end of life contribute significantly to accidents and traffic congestion. For this reason, the association has advocated for

national and state-level fleet renewal programmes to assist truck and bus owners in replacing older models with newer ones and to ensure the

proper disposal of end-of-life vehicles.

Political Parties

Iveco Group is committed to employing the highest standards of transparency and integrity in any and all relationships it has with political parties,

as well as with their representatives or candidates (collectively referred to as Political Parties). Financial contributions to Political Parties are only

allowed where permitted by law and must be authorised at the appropriate level within each legal entity. An employee's political affiliation or

financial contribution is considered a personal matter and is completely voluntary, including contributions made through a Political Action

Committee (PAC).

In 2024, no contributions were made to Political Parties.

Furthermore, no Board member held a comparable position in public administration (including regulatory bodies) in the 2 years prior to their

appointment.

11.7 SUSTAINABLE SUPPLY CHAIN (G1-2, G1-6)

In keeping with previous years, Iveco Group continued to take a responsible approach to the management of its entire supply chain. From small

local companies to large multinational organisations, the Group remained focused on forging relationships that go beyond commercial

transactions, working hard to build long-lasting and mutually beneficial collaborations with eminent and qualified partners that share its principles.

For Iveco Group, supply chain sustainability means strategically and effectively promoting a sense of shared responsibility beyond corporate

boundaries. This means that, in addition to the established priorities at the heart of supply chain management – quality, price, and lead times –

the Organisation is fundamentally committed to advocating socially and environmentally responsible practices across its entire supply chain, while

spreading a culture of sustainability among those employees who work with the suppliers every day. Relationships based on open dialogue and

collaboration foster efficiency, quality, innovation and, above all, a shared commitment to achieving sustainability targets, creating undeniable

mutual benefits for both Group and suppliers. Furthermore, all parties involved stand to gain from long-term relationships centred on the

implementation and monitoring of high standards of sustainability, because this reduces potential risks, ensures continuity of supply, and

improves overall sustainability along the entire supply chain, mitigating reputational risks that could affect the Organisation's credibility.

(121) Target progress is calculated as a percentage of Iveco Group's annual purchase value (APV).

Board Report Sustainability Statement 131

Iveco Group's purchases are managed by its Group Procurement function and by the Business Unit Procurement teams within the Supply Chain

function, operating globally through dedicated structures, by product line and sourcing areas. These Procurement teams define strategies and

guidelines to build and strengthen alliances with suppliers, offering them stability and development opportunities by leveraging the Group's broad

product portfolio. The ultimate responsibility for sustainability in supply chain management lies with Iveco Group's Senior Leadership Team (SLT).

Meanwhile, a dedicated Supply Chain Excellence and Sustainability Team (established within the Supply Chain Leadership Team) is responsible

for monitoring suppliers' compliance with the Supplier Code of Conduct and their sustainability assessment process.

Two strategic sustainability targets for suppliers were incorporated into the Strategic Business Plan:

▪ 100% (121) of Tier 1 suppliers to be involved in sustainability assessments by year-end 2026

▪ a 100% increase in the number of collaboration projects with suppliers to improve products' sustainability performance by year-end 2026

(compared to 2021).

For further details on:

▪ the target definition process

▪ stakeholder involvement in target setting

▪ target base year and applicable period

▪ target monitoring and progress during the year

please refer to the Sustainability Plan in 1.6 Strategy, Business Model, and Value Chain.

To ensure the consistent alignment of the Group's supply chain and purchasing practices with the Supplier Code of Conduct, suppliers undergo

an Ethical Check every 3 years. This assessment is conducted by an external third party, using a dedicated reporting system that allows the

monitoring of any potential issues that may require further clarification or investigation. This periodic monitoring is regulated by Iveco Group

policies and procedures designed to ensure supplier compliance.

In 2024, a training module on the corporate Supplier Code of Conduct was developed and delivered to both the supplier base and employees. All

suppliers must comply with applicable laws (including, but not limited to, anti-corruption and antitrust regulations) and with the Supplier Code of

Conduct, and are obliged to report any suspected violations thereof to the Organisation. To this end, they have access to an operational

grievance mechanism, the Compliance Helpline (details of which are available in the Supplier Code of Conduct), to report potential violations of

corporate policies, the Code of Conduct, or applicable laws. Any violations by suppliers may result in the termination of their business relationship

with Iveco Group.

Moreover, in keeping with previous years, Iveco Group continued to implement a number of well-established initiatives targeting those employees

responsible for supplier relationships, i.e., those tasked with raising awareness of sustainability and good governance among suppliers through

open and ongoing dialogue. These initiatives included the development of a training module for supply chain employees (mainly buyers), focusing

on their roles within the supplier ESG programme.

Supplier Profile

Iveco Group manages purchases worth above €9.09 billion and a network of 1,966 direct material suppliers. In 2024, 77 new eligible suppliers

were assessed to be added to this network, while there were no significant changes to supply chain structure and no additional outsourcing of

activities. The top 150 suppliers are considered strategic suppliers, not only because they generate 77% of the total value of purchases, but also

because of the length of each relationship and the extent of each supplier's production capacity and capability for handling spare parts.

Suppliers in Numbers

Iveco Group worldwide


	2024
Direct and indirect material purchases (% of the total volume of Iveco Group purchases)	90
Direct material suppliers (number)	1,966
Value of purchases from direct material suppliers (€ billion)	7.15
Value of purchases from indirect material suppliers (€ billion)	1.03
Local suppliers (%)	96

(122) Local suppliers are those operating in the same country as the Iveco Group plant in question.

(123) The significant locations of operation are defined by total direct material purchases. Europe represents the Group's primary location of operation as its direct material purchases

account for 88% of the total value of purchases.

Board Report Sustainability Statement 132

The targets the Group has set itself include developing local skills, transferring technical and managerial expertise, and strengthening local

businesses. The Organisation strives to build strong long-term relationships with local suppliers as this presents fewer risks associated with

business operations and optimises costs.

Significant amounts are spent on local suppliers(122): in 2024, the contracts signed with them by Iveco Group accounted for 96% of its procurement

costs. Furthermore, 91% of these contracts were signed in Europe, which is the primary location of operation(123).

Still in 2024, the Group performed a detailed financial assessment of its supplier base (which will be conducted regularly) to monitor and mitigate

financial risk. It involved 1,343 suppliers (accounting for approximately 68% of direct material purchases) in the following categories:

▪ casting and machining: 8%

▪ cabs: 16.6%

▪ electrical and electronics: 16.7%

▪ engines and after-treatment systems: 15.5%

▪ steel: 17.3%

▪ vehicle dynamics: 25.6%

▪ other: 0.3%.

Of the suppliers involved in the analysis, 98% were in Europe, 2% in South America, and 1% in the Rest of the World.

The Organisation recognises that the continuous monitoring of economic factors is essential to good supply chain management. The tool used for

financial risk assessments (called TIGRAN) gives supply chain managers access to the suppliers' financial assessments. The tool is continually

updated with confidential information provided by the suppliers themselves and with information contained in any financial reports. Based on the

results of this evaluation, which are generated automatically and checked by an analyst, suppliers are classified according to their category of

financial risk. Suppliers in particular difficulty are monitored weekly to prevent or minimise the risk of any interruptions to the supply chain.

Supplier Selection

Considerable effort went into ensuring the full integration of environmental and social sustainability standards into the supplier management

system. Selecting and codifying new suppliers is an operational phase of the procurement process that is regulated by specific internal

procedures. Selection is based not only on the quality and competitiveness of supplier products and services, but also on supplier compliance

with the Group's social, ethical, and environmental principles.

New suppliers are required to sign a formal Commitment Declaration through which they agree to comply with both the corporate Code of

Conduct and Supplier Code of Conduct. Specific contractual clauses require them to provide references and demonstrate abilities in relation to:

fighting corruption, safeguarding the environment, promoting health and safety at work, ensuring non-discrimination, prohibiting forced and/or child

labour, and recognising employees' freedom of association. Supplier agreements contain these and other clauses, as well as best practices and

the General Purchasing Terms and Conditions, all of which are shared and applied consistently across Iveco Group.

If a supplier fails to adhere to any of the above principles, the Organisation reserves the right to terminate the business relationship or instruct the

supplier to implement a corrective action plan.

A company's potential to join the Group's supply chain is evaluated through the Potential Suppliers Assessment (PSA) process, which allows

identifying a supplier's strengths and weaknesses, as well as its ability to manufacture according to the defined quality standards using best

practices; it also allows systems and processes to be assessed directly at supplier plants. The PSA process is carried out not only to evaluate

companies that do not currently provide direct materials to Iveco Group, but also suppliers that have undergone reorganisation or whose plants

were relocated. PSAs are performed prior to the procurement phase to allow potential new suppliers to participate in tenders. PSA criteria involve

key sustainability aspects, with explicit reference to both environmental and occupational health and safety management. Indeed, one of the

requirements is to have environmental and health and safety systems in working areas, preferably certified by a third party. A dedicated section of

the PSA also allows verification of suppliers' compliance with the restrictions on the use of hazardous substances. A suitable management system

is a key factor in the Group's decision to do business with suppliers, as it reflects their efforts to monitor and manage environmental aspects,

labour practices, human rights, and their impacts on society.

In 2024, 77 new suppliers were evaluated according to the above criteria and deemed ready to be added to the Group's network. Supplier

sustainability is then assessed regularly based on indicators included in an assessment questionnaire, with results verified by audit for a number

of suppliers determined each year.

(124) Competitiveness, time readiness, quality, time delivery, and ESG & compliance.

(125) Suppliers posing a substantial risk in terms of negative ESG impacts and/or identified as being of significant business relevance to Iveco Group.

Board Report Sustainability Statement 133

Supplier Performance Monitoring

Iveco Group monitors supplier performance via the EVA KPI dashboard, which tracks the most relevant KPIs, targets, and trends for each supply

chain area. Meanwhile, a new Holistic Supplier Dashboard, developed to drive continuous improvement, is set to launch, with a pilot phase

scheduled for 2025. This new dashboard is designed to provide a comprehensive overview of suppliers, structured around two main categories –

performance and maturity – with KPIs grouped into 5 clusters(124), then normalised and weighted. The dashboard will facilitate the prompt

identification of trends, potential issues across different sectors and/or product families, and areas for improvement, enabling proactive

management and the swift implementation of corrective measures where needed. It will also enable the comparative analysis of supplier

performance within the same category of materials, thus providing valuable insights into each supplier's strengths and weaknesses, contributing

to the optimisation of Iveco Group's sourcing strategies.

The dashboard will also feature a dedicated ‘ESG & Compliance’ cluster, containing KPIs related to sustainability and compliance. This will

monitor suppliers' adherence to the highest environmental, social, and governance (ESG) standards, further strengthening the Group's

commitment to sustainability. Additionally, it will enhance the Group's risk management capabilities by providing more granular insights into

potential vulnerabilities and compliance issues, allowing for more proactive and effective mitigation strategies.

Supplier ESG Assessment

Undoubtedly, suppliers are central to supply continuity and can influence the way public opinion perceives Iveco Group's social and environmental

responsibility. The Group has therefore developed a process to assess its suppliers on sustainability issues, which helps prevent or minimise the

environmental or social impact of the supply chain. This process is also a means to engage suppliers while promoting high sustainability

standards and continuous improvement and development. To this end, Iveco Group provides an email address exclusively for suppliers to

address sustainability matters, so as to enhance communication and ensure it is effective and transparent.

The supplier assessment process is performed annually, managed by the Supply Chain Sustainability function and overseen by the Supply Chain

Leadership Team. It involves 3 consecutive steps over the year:

▪ step 1: sustainability assessment and screening (via the Open-es platform)

▪ step 2: sustainability risk assessment

▪ step 3: sustainability audits.

During the first step of the evaluation process, suppliers are asked to fill out a sustainability assessment questionnaire on Open-es, a digital

platform designed to engage companies in a shared journey towards sustainability performance improvement. The platform is an interactive

ecosystem in which Iveco Group serves as a Value Chain Partner, playing an active role together with its suppliers. All companies within this

ecosystem collaborate and compete on sustainability matters with a sense of purpose, so as to create tangible, long-term value across the entire

production chain. In order to monitor the ESG performance of its suppliers, Iveco Group asks them to register on the Open-es platform, access

their ESG profile, and fill out the Open-es questionnaire, which is structured around the three Environmental, Social, and Governance (ESG)

pillars. After the assessment, suppliers can access their ESG reports via the platform, along with suggestions regarding the implementation of

corrective or improvement actions based on any gaps identified. Meanwhile, the data they entered into the Open-es platform allows Iveco Group

to screen them on sustainability topics. To support the suppliers' continuous improvement and development, Open-es also offers in-depth

technical support programmes to build their capacity and improve their ESG performance, as well as validation, auditing, comparison/ESG

benchmarks, and consultancy services.

During the second step of the evaluation process, the outcomes of the Open-es assessment questionnaires are analysed and used in-house by

the Group to perform a sustainability risk assessment, which enables the identification of critical suppliers(125) whose compliance with sustainability

requirements needs to be addressed. These suppliers are identified based on specific criteria, such as whether or not they have disclosed their

Open-es ESG score and relevant evaluation to Iveco Group. Based on risk assessment outcomes, suppliers are selected for additional actions,

follow-ups, and/or auditing.

Sustainability performance, along with each supplier's financial, technical, and logistics data, makes up the Summary by Plan document used by

Iveco Group to assign new orders. The Group also tracks Open-es memberships via the platform itself. While the sustainability score is not a

determining factor for supplier qualification as of yet, the aim is to make it a mandatory prerequisite for new product sourcing. Throughout the

year, the Group continued to encourage its direct material suppliers to join the Open-es platform, bringing the total number of registered suppliers

to 805, representing approximately 89% of Iveco Group's direct material purchases.

Board Report Sustainability Statement 134

2024 Analysis of Supplier Assessment Questionnaires

Iveco Group worldwide


	Number of suppliers identified as having significant actual and/or potential negative impacts(a)	Significant actual and/or potential negative impacts
Environmental aspects	3	Lack of information regarding: ▪ climate change strategy ▪ water management ▪ monitoring of pollution ▪ circular economy
Social aspects	2	Lack of information regarding: ▪ materiality assessment and social impacts ▪ ESG strategy in the value chain

(a) Out of 52 suppliers that had completed over 50% of the Open-es questionnaire.

Sustainability audits represent the third step of the evaluation process. They are organised in agreement with the suppliers, and performed on

site at their plants by independent external auditors. The aim is to check the information submitted via the Open-es assessment questionnaires

and define possible improvement plans where necessary. Each supplier selects a manager and other representatives within its organisation

(usually from Human Resources, Safety, Environment, and Quality) to take part in the audits. Should these reveal critical issues to be addressed,

joint action plans are drawn up with the suppliers to define:

▪ improvement areas (e.g., implementation of internal procedures in line with sustainability principles)

▪ responsibilities (which could entail organisational changes)

▪ corrective measures (e.g., targeted training programmes)

▪ timeframes for action plans.

In 2024, the sustainability audits conducted by external auditors took place at 84 supplier plants worldwide, involving 84 suppliers (of which 81

were new).

Audits by Geographic Region

Iveco Group worldwide (number)


	2024
Europe	59
South America	13
Rest of World	12
Total	84

Globally, the total audits performed covered approximately 19.3% of Iveco Group's total purchase value.

In 2024, 66 suppliers were required to address areas in need of improvement with the formulation of corrective action plans (against 331 findings,

of which 40 related to the failure to complete Open-es registrations). No critical issues emerged from the audits, and therefore no contracts were

suspended or terminated.

Action plans are then monitored via follow-ups between supplier and auditor, under the supervision of Iveco Group's Supply Chain Sustainability

function. At the end of the follow-up period, action plan results are collected and analysed for compliance according to a dedicated operational

procedure. In the event of defaulting suppliers, further corrective actions are defined and implemented in agreement with the Group's relevant

internal departments.

Board Report Sustainability Statement 135

2024 Analysis of Corrective Action Plans


	% of suppliers identified as having significant actual and/ or potential negative impacts, with which action plans were agreed(a)	Number of action plans identified	Main action plan topics
Environmental	37	90	▪ measurement and monitoring of GHG emissions ▪ policy or guidelines for managing climate-related aspects ▪ increasing awareness of own environmental impact
Social	49	95	▪ overtime management ▪ whistleblowing procedures ▪ code of ethics ▪ risk assessment related to human resources and to child labour violations
Governance	40	106	▪ awareness across the supply chain ▪ integration of ESG aspects into supplier selection ▪ measurement of ESG performance based on appropriate standards ▪ anti-corruption policies and procedures

(a) The percentage is calculated based on the number of suppliers audited.

Building Strong Supplier Relationships

Iveco Group is firmly convinced that suppliers are key to its sustainable growth, which is why it does its best to keep them engaged and informed

at all times. This continuous dialogue and exchange allows the Group to strengthen supplier relationships, providing fertile ground for shared

goals and strategies and for thriving collaborations and joint projects – as evidenced by the Group's many long-standing and mutually beneficial

alliances. The Supplier Portal represents the main collaboration and communication platform used by Iveco Group to interact with its supply chain.

It contains the forms, documents, and tools used to exchange information and manage any operations involving suppliers. Encouraging Open-es

platform membership is Iveco Group's primary means of increasing supplier engagement and sustainability awareness. The platform's approach

revolves around creating a sense of community and providing a space where experiences can be shared. The opportunity for comparison with

other industry companies makes suppliers more aware of their areas of strength and more mindful of any areas for improvement and action

priorities.

In 2024, several initiatives promoting the exchange of ideas and information with suppliers continued as in previous years.

The first half of the year saw 4 major Supplier Day events organised in the EMEA Region. Selected suppliers participated in dedicated workshops

held at company premises, working alongside the Procurement, Product Engineering, and Supplier Quality teams to explore product optimisations

and deliverables aimed at reaching Iveco Group's project milestones. Additionally, a webinar was held for the supplier base of Brand IVECO BUS

to provide insights into procurement, manufacturing, and quality, sharing key information while raising awareness of the Bus Business Unit's

growth. Another key initiative rolled out across regions, known as Technology Days, offered suppliers a platform to showcase their latest

innovations and technological advancements while addressing specific topics and recent developments, with 6 events held in EMEA and 2 in

South America. As part of its journey to reduce the environmental impact of its supply chain, the Group held a two-day workshop in July 2024 for

an initial group of suppliers to present its decarbonisation strategy and explore it through focused discussions. It involved some Organisation’s

major suppliers and focused on identifying and measuring emissions associated with their activities and products that can have a positive impact

in reducing the Group emissions. The outcomes of this assessment will serve as the foundation for a structured decarbonisation plan, outlining

key actions, timelines, and indicators to track progress. The plan will be integrated into the Group's broader sustainability strategy and reporting

framework, reinforcing its commitment to reducing emissions across the supply chain.

Numerous initiatives were also promoted to foster innovation among suppliers, advocating a proactive approach to business.

In this regard, one of the Group's key initiatives is to act on supplier suggestions; indeed, through the Suppliers' Proposals section, accessible via

the Supplier Portal, suppliers can submit both cost reduction and quality improvement ideas, which are then evaluated by a dedicated cross-

functional team at Iveco Group.

In the LATAM Region, several initiatives were implemented to strengthen relationships and engagement with local suppliers, with a focus on

building strategic and sustainable partnerships. Supplier Webinars LATAM exemplifies this approach, with 5 online meetings held during the year

to provide clarifications, strategic alignment, and engagement opportunities while sharing best practices. These sessions were well received by

the local supplier network, as reflected in the positive feedback.

Board Report Sustainability Statement 136

The 2024 Supplier Meeting LATAM, held in September, marked a milestone for Iveco Group, bringing together its senior management and local

suppliers for the first time. The event was a reflection of the Group's robust growth plan, highlighting its strategic vision and objectives while

underscoring the crucial role of suppliers in achieving them, emphasising how supplier success is integral to the Group's success. In addition to

the main 2023 Supplier of the Year award presented during the event, 6 suppliers were recognised across different categories: Customer

Services, Indirect Materials, Business Relationships, Technology and Innovation, Quality, and Sustainability. These winners were selected from a

pool of over 250 suppliers evaluated by 60 professionals from various areas within Iveco Group. As regards the award's Sustainability category, a

webinar was held to present Iveco Group's ESG pillars and emphasise the importance of the Open-es platform. Suppliers were encouraged to

submit projects aligned with the Group's sustainability priorities, competing for recognition in this category. The initiative set a new record, with 44

projects submitted by 37 suppliers in four key areas: Inclusion and Engagement (11 projects), Zero Carbon (12), Life Cycle Perspective (14), and

Workplace Safety (7). The success of this initiative was a reflection of Iveco Group's commitment to strategic and sustainable partnerships, in line

with its objectives for growth and responsible innovation.

Iveco Group also participated in FENATRAN, the largest innovation fair in Latin America's road transport and cargo sector. During the fair's

Supplier Experience event, 40 of the Group's main suppliers were welcomed at the stands of brands IVECO and FPT Industrial, where they took

part in a guided experience to explore products and services in greater depth. This initiative reinforced Iveco Group's commitment to growth and

collaboration with its partners while highlighting product innovations and the fast-evolving market landscape.

The above efforts reflect the Group's dedication to establishing solid, sustainable, and innovative partnerships, in line with its vision of building a

more responsible future while strengthening its leadership in the sector.

Collaboration Projects with Suppliers

In order to enhance supplier engagement and promote initiatives focused on cost reductions and localisation, Iveco Group launched two key

initiatives in LATAM: the Supplier Journey in Argentina and the G-Drive Workshop in Brazil.

▪ Supplier Journey

In Argentina, the Supplier Journey brought together the top 50 local partners for a strategic meeting focused on exploring cost reduction

opportunities for both existing products and new projects. The event also addressed crucial topics such as NexPro aftermarket solutions,

sustainability, and localisation. During the meeting, suppliers were presented with a challenge, resulting in the submission of 125 proposals

aligned with the event's objectives.

▪ G-Drive Workshop

In Brazil, the G-Drive Workshop was held at the FPT Industrial plant in Sete Lagoas, bringing together more than 80 suppliers, including

existing and potential new partners. During the event, participants had the opportunity to engage in hands-on discussions with the Engineering,

Purchasing, and Quality teams over a disassembled engine, used as a focal point for the exchange of detailed technical information. The

initiative led to the identification of 370 cost reduction and localisation opportunities, highlighting the potential for innovation and synergy

between Iveco Group and its partners in Brazil.

Both initiatives reflect the Group's commitment to strengthening relationships with its suppliers and to seeking solutions that drive

competitiveness, sustainability, and efficiency across LATAM.

Supporting the Supply Chain

In light of today's global context, it is ever more important to closely monitor and manage any critical situations arising along the supply chain. To

this end, Iveco Group has further strengthened its structures and mechanisms for managing suppliers in financial difficulty, focusing on promptly

identifying high-risk situations and on stabilising them through appropriate measures to ensure supply continuity. These measures include a

recently implemented supplier monitoring tool.

The Group's contractual payment terms are designed to be consistent across all supplier categories and in line with mandatory regulations.

Worldwide, Iveco Group's average standard contractual payment term is 70 days starting from the invoice date; this average includes agreements

with some long-term business partners or to regulate specific situations to which different payment terms may apply (the details of payment terms

by category and the percentage of payments aligned with the standard terms are currently unavailable).

In the reporting period, the average time taken to pay an invoice from the date when the contractual payment term starts to be calculated was 81

days. This average reflects the Group's performance across all supplier categories, including small- and medium-sized enterprises (SMEs).

In 2024, no material legal proceedings were initiated concerning claims for late payments to suppliers.

Supply Chain Risk Management

Any company managing risk proactively should focus not just on its own risk, but also on any risk within its supply chain. This dual approach

makes supply chain risk management a priority. To date, the Organisation has developed 2 tools to support this effort: EVA, which provides key

supplier base information and related KPIs, providing insights into supplier performance from multiple perspectives (including economic factors,

service levels, DPO, etc.); and TIGRAN, which ensures the timely updating of financial evaluations.

To further strengthen this framework, the Group is currently developing a new Holistic Supplier Dashboard that will be ready for a pilot phase in

2025. For further details, see ‘Supplier Performance Monitoring’ in this section.

(126) For the complete list of plants, see 1.1 General Basis for the Preparation of the Sustainability Statement.

Board Report Complementary Information 137

COMPLEMENTARY INFORMATION

1. PLANT IMPACT MANAGEMENT

1.1 ADDITIONAL ENVIRONMENTAL INFORMATION ON PLANTS

1.1.1 Environmental protection management

Iveco Group makes every effort to enhance the effectiveness, efficiency, economic viability, and environmental sustainability of its manufacturing

processes. This entails streamlining systems and technologies, improving existing materials, processes, and techniques, and developing new

ones, striving to ensure they are all technologically appropriate, technically feasible, and eco-friendly. New plants are built in compliance with

environmental protection criteria, taking into account specific local needs and the impact of construction. Newly acquired plants, on the other

hand, are assessed based on existing processes and operations to determine the measures necessary to comply with the Organisation’s

environmental management standards.

Continuously improving the environmental performance of manufacturing processes is one of Iveco Group's top priorities. This means adopting

both conventional and enhanced technologies to increase operational efficiencies, and acting responsibly to mitigate their environmental impact. It

also entails implementing a robust environmental management system to monitor, measure, and quantify significant environmental aspects, with

improvement targets set at both corporate and plant levels. Just as importantly, it involves safeguarding the environment based on principles of

prevention, protection, information sharing, and people engagement, so as to create effective long-term value.

Iveco Group uses well-established monitoring and reporting systems and effective key performance indicators (KPIs) to track its environmental

performance, measure the effectiveness of actions taken to achieve targets, and plan new improvement initiatives. The KPIs in place can be

analysed at different levels (plant, business unit, geographic region, or Group-Wide), which enables the simultaneous and parallel engagement of

multiple corporate functions at various levels in meeting targets. The Group also performs periodic internal and external benchmarking activities to

help drive the continuous improvement of its plants' environmental performance.

1.1.2 Responsibility and organisation

The ultimate responsibility for Iveco Group's environmental protection initiatives lies with the Senior Leadership Team (SLT), while the specific

projects to reduce the environmental impact of manufacturing processes are the responsibility of plant managers.

Environmental issues are coordinated and managed by the central Energy, Environment, Health and Safety (EEHS) function, in line with the

Group's Environmental and Energy policies. Serving as a reference point for sustainability, the EEHS implements improvement actions at local

level, periodically assesses performance against targets, proposes new initiatives, and defines environmental policies. An important role is also

played by plant employees from other functions/units (production lines, logistics, manufacturing engineering, etc.) involved in addressing

environmental issues in various capacities.

1.1.3 Environmental and energy-related investments

In 2024, the Group's environmental protection initiatives accounted for €2.48 million in investments in capital expenditures (CapEx) and €847,000

in operational expenditures (OpEx), with part of these investments linked to projects from previous years.

Similarly, investments in energy efficiency totalled €3.12 million in CapEx and €197,000 in OpEx, including allocations for ongoing projects.

Notably, the efficiency initiatives introduced during the year generated annual cost savings of approximately €550,000, with an estimated simple

payback period of around 1.8 years.

1.1.4 Process certification

To enhance its environmental management and performance, Iveco Group has committed to certifying its plants' environmental management

systems as per the ISO 14001 international standard, and to maintaining such certifications. At year-end 2024, all 22 plants within the scope of

the Focus Area (126) were ISO 14001 certified. An ISO 14001 certified environmental management system enables the systematic management of

environmental aspects under normal and abnormal operating conditions, as well as in emergencies. In the latter case, it requires the adoption and

regular verification of emergency plans and procedures, along with related staff training. These procedures define roles, responsibilities, and the

appropriate response for tackling anomalous and/or emergency situations, to protect both people and the environment.

Maintaining environmental certification entails annual monitoring through a series of external third-party audits carried out by accredited bodies,

and certification renewal every 3 years. Individual plants are also required to verify the performance of their environmental management systems

through annual internal audits.

Board Report Complementary Information 138

With regard to energy certifications, at the end of the year, all 22 plants included in the scope of the Focus Area were ISO 50001 certified,

evidence of Iveco Group's quest to reduce its energy impact. The main advantage of ISO 50001 certification is its systematic approach to

continuous improvement in energy performance, leading to a more efficient and rational use of energy. This translates into economic benefits and

fewer greenhouse gas (GHG) emissions.

These efforts also applied to the non-manufacturing perimeter, which is governed by its own energy management system, resulting in the logistics

hub in San Mauro Torinese (Italy) becoming Iveco Group's first ISO 50001:2018 certified non-manufacturing site. The Group also obtained ISO

50005:2021 attestation (which provides for a phased approach to ISO 50001:2018 certification) for its dealers of property (DOPs) in Trento (Italy),

Barcelona and Madrid (Spain), Vitrolles (France), Hamburg, Berlin, Cologne, Mannheim, and Nuremberg (Germany), Farnborough (UK), Lodenice

(Czech Republic), and Manolache (Romania).

1.1.5 Engagement and awareness activities

In its effort to promote and disseminate the principles of continuous improvement and environmental management both within and beyond

corporate boundaries, Iveco Group has implemented specific communication and training tools for employees and business partners, and has

organised targeted events to engage employees' family members and local communities. The Group also delivered awareness training to its

people, focusing on water efficiency management programmes, wastewater and chemical product management, waste sorting, and waste

reduction. In 2024, a total of 17,527 hours of environmental training was delivered to employees, including 13,302 hours of on-the-job training for

11,035 individuals (93% of whom were hourly) representing 31% of the global employee headcount. With regard to energy efficiency,

approximately 1,700 hours of training were provided (mainly by in-house professionals) to more than 2,450 people across different plants,

focusing on proper energy performance monitoring and management, the Group’s decarbonisation strategy, and the best and latest technologies

available. Several employee initiatives were introduced to raise energy awareness and promote a more sustainable lifestyle, such as energy

workshops covering a range of topics of interest to the many Iveco Group energy specialists attending from plants worldwide. As might be

expected, the Group's commitment to raising awareness of environmental issues also extends to its suppliers and dealers.

1.1.6 Protecting the soil and subsoil

Iveco Group strives to minimise the risk of environmental impact on the soil and subsoil around its sites. In Europe, for example, following the

circulation of specific guidelines for monitoring existing underground structures, plants periodically carry out the monitoring and inspection of

tanks, vats, and underground pipes. In 2024, no significant releases of potentially contaminating substances were recorded.

1.1.7 Protecting biodiversity

Iveco Group recognises the importance of protecting and enhancing biodiversity in the areas surrounding its plants, in line with its corporate

policies. To assess some of its manufacturing sites near protected areas of particular environmental interest, the Group employs the biodiversity

value index (BVI) methodology. It provides for an in-depth analysis of ecosystems within a 5-kilometre radius of these sites, determining

biodiversity levels and identifying improvement measures accordingly. The Organisation's approach to biodiversity also encompasses a second

methodology, known as biodiversity risk evaluation (BRE), which focuses on the activities and impact of the plants and on the significant risks

they may pose to biodiversity and natural resources, regardless of their contribution to the overall activities and impacts reported in the

surrounding areas. The BRE assesses the following 3 main aspects:

▪ assets – the resources available in the region (protected areas, areas with high biodiversity value, protected species)

▪ footprint – the impact of plant activities on biodiversity, in terms of use of resources and polluting emissions

▪ awareness – the level of environmental awareness among plant employees and stakeholders in the region.

The BRE generates a risk map for each plant, indicating its potential to damage biodiversity. These maps are used to determine improvement

measures (which are implemented according to the scores assigned to each risk) and to identify standardised indicators (which enable a

consistent comparison between different plants' risk maps).The BRE and BVI methodologies are used to establish a mitigation hierarchy for plant

operations within areas of high biodiversity value. After an initial screening assessment to identify high-priority plants located near sensitive areas,

the two methods are applied using a multi-criteria scoring system to measure the risks to and impacts on biodiversity of such operations.

Mitigation and restoration measures are then implemented according to the main risks identified and the potential involvement of local

stakeholders. Both BRE and BVI measure the potential environmental impact of plant operations on biodiversity based on their biodiversity

footprint, which is quantified using the ReCiPe 2016 life cycle impact assessment method. This translates material and energy inputs and outputs

into potential environmental impact scores, which are further aggregated so that the potential damage to biodiversity is expressed in time-

integrated species loss (TISL, i.e., potential species loss per year). The application of both methods often involves external partners and

stakeholders; their engagement is important both in the risk assessment phase, to measure their level of awareness of biodiversity conservation,

and in the follow-up phase, when specific mitigation measures are implemented. In both cases, partnerships are encouraged with authorities,

NGOs, and public or private third parties managing protected areas. The methods themselves were developed with the support of external

partners. The BVI and BRE methodologies have shown that biodiversity and the ecosystem services at all plants assessed to date are generally

exposed to insignificant levels of risk and impact overall. Although no specific improvement measures were required following the adoption of

these methodologies, a number of initiatives are being implemented to protect biodiversity within and around the plants that have adopted them.

The two methodologies have been implemented at about 92% of plants within the scope of the Focus Area that are near, bordering, or within

protected or high-biodiversity areas. The extension of these methodologies to other potentially suitable plants will be assessed over the coming

years.

Board Report Complementary Information 139

2024 Plants Near, Bordering or Within Protected(a) or High-Biodiversity Areas

Iveco Group worldwide


Plant (Country)	Primary functions	Plant’s total surface area (m²)	Location with respect to protected area	Species on IUCN Red List of threatened species and on national lists (number)
Bolzano (Italy)(b)	Defence vehicles	120,000	Adjacent to the protected area (5,000 m)	387 species listed, of which: ▪ 0 critically endangered ▪ 6 endangered ▪ 17 vulnerable ▪ 27 near threatened ▪ 337 of least concern
Bourbon-Lancy (France)(c)	Engines (heavy)	210,000	Adjacent to the protected area (500 m)	193 species listed, of which: ▪ 0 critically endangered ▪ 2 endangered ▪ 1 vulnerable ▪ 1 near threatened ▪ 189 of least concern
Foggia (Italy)(c)	Engines (light), drive shafts	601,680	Adjacent to the protected area (3,500 m)	168 species listed, of which: ▪ 0 critically endangered ▪ 0 endangered ▪ 2 vulnerable ▪ 6 near threatened ▪ 160 of least concern
Madrid (Spain)(c)	Heavy vehicles	347,200	Adjacent to the protected area (1,500 m)	64 species listed, of which: ▪ 0 critically endangered ▪ 0 endangered ▪ 0 vulnerable ▪ 1 near threatened ▪ 63 of least concern
Piacenza (Italy)(b)	Heavy vehicles	175,000	Adjacent to the protected area (5,000 m)	241 species listed, of which: ▪ 2 critically endangered ▪ 6 endangered ▪ 11 vulnerable ▪ 13 near threatened ▪ 209 of least concern
Sete Lagoas (Brazil)(c)	Light, medium, and heavy vehicles	2,111,608	Adjacent to the protected area (1,500 m)	79 species listed, of which: ▪ 0 critically endangered ▪ 0 endangered ▪ 0 vulnerable ▪ 0 near threatened ▪ 79 of least concern
Suzzara (Italy)(c)	Light vehicles	539,000	Adjacent to the protected area (4,000 m)	110 species listed, of which: ▪ 0 critically endangered ▪ 2 endangered ▪ 0 vulnerable ▪ 0 near threatened ▪ 108 of least concern
Torino Driveline (Italy)(b)	Transmissions, axles	248,310	Adjacent to the protected area (included in a 5 km radius)	299 species listed, of which: ▪ 7 critically endangered ▪ 10 endangered ▪ 21 vulnerable ▪ 19 near threatened ▪ 242 of least concern
Torino Motori (Italy)(b)	Engines (heavy)	230,000	Adjacent to the protected area (included in a 5 km radius)
Ulm (Germany)(c)	Firefighting vehicles	679,000	Adjacent to the protected area (2,000 m)	153 species listed, of which: ▪ 0 critically endangered ▪ 2 endangered ▪ 1 vulnerable ▪ 3 near threatened ▪ 147 of least concern

(a) Protected areas (national, regional, of EU-level importance, special protection zones, oases, etc.) are geographically defined areas designated, regulated, or managed to achieve

specific conservation objectives. Areas of high biodiversity value are not subject to legal protection, but are recognised by governmental and non-governmental organisations as having

significant biodiversity.

(b) Plant implementing the BRE methodology that is near, bordering or within protected or high-biodiversity areas.

(127) Polychlorinated biphenyls (PCBs) are a group of extremely stable chemical compounds with excellent dielectric and heat transfer properties, widely used in the past in both industry and

commerce (e.g., in capacitors and transformers). Because of their toxicity to humans and to the environment, PCBs are among the most dangerous pollutants.

(128) Polychlorinated terphenyls (PCTs) have physical and chemical properties similar to PCBs, and may contain up to 10% PCBs within the product matrix. They have been used as

plasticisers, fire retardants, and in various types of coating.

Board Report Complementary Information 140

1.1.8 Other environmental indicators

Iveco Group is also concerned with reducing other environmental indicators, most notably hazardous substances and noise emissions to the

external environment generated by its equipment and manufacturing processes. As regards hazardous substances, no PCBs(127) or PCTs(128) are

present in the operations carried out across the Organisation. In 2024, no fines or sanctions for non-compliance related to ecological or

environmental issues (including water) were imposed on Iveco Group's plants.

1.1.9 Substances of particular concern for health and the environment

Iveco Group is strongly committed to adopting alternatives to certain substances identified as of particular concern for human health and the

environment, and especially to studying and implementing alternatives to heavy metal-containing products used in painting processes. More

broadly, the Group is committed to the sustainable and reduced use of chemicals, with a view to environmental protection, waste reduction, and

cost savings. At each site that handles hazardous substances, the latter are labelled, stored, handled, and transported as per all applicable local

regulations.

1.2 DRIVING OPERATIONS TOGETHER

The Driving Operations Together (DOT) programme is Iveco Group's results-oriented approach for continuous improvement, designed to optimise

its operations worldwide and incorporate sustainability into its processes. The programme brings a new managerial focus to drive accountability

and a more entrepreneurial mindset across all business areas. The DOT holistic model aims to deliver this vision by sustaining a culture of

operational excellence in all corporate processes. It is targeted at reducing waste, increasing margins, and improving performance across all

value streams, and ultimately at adapting rapidly to change. The DOT approach ensures all personnel are working towards the same goals,

contributing to the achievement of operational excellence in all business practices. The DOT programme is built on competitiveness, engagement,

and recognition. Through effective skills management and information sharing on technical performance and on the programme's implementation

across the Organisation, expertise is further developed and new opportunities are embraced, thereby driving growth. This innovative framework

guides the Group's strategy in terms of performance, digitalisation, and competitiveness, ensuring common goals for everyone involved in the

pursuit of operational excellence. Its effective governance and project management are fundamental for programme implementation and key to

sustaining its momentum, steering actions, increasing accountability, and promoting teamwork.

1.2.1 People development through the DOT programme

The DOT holistic model supports a culture of operational excellence across Iveco Group, paving the way for a consistent and shared approach

applied by everyone to achieve best-in-class standards. As at 31 December 2024, 20 plants were participating in the programme, accounting for

56% of employees worldwide.

The DOT programme is designed to enrich the Group's ecosystem by introducing a new managerial focus that encourages a more proactive

mindset. This is why employees play a pivotal role in the programme, as reflected by one of its 11 commitments explicitly centred on people,

recognising their critical role in driving excellence. The aim of this commitment is to shape the teams of the future by advancing knowledge and

skills, while promoting and building a strong culture around improvements in safety, sustainability, quality, products, processes, and logistics. The

programme therefore helps the Organisation establish a robust competency development system within each plant, centred on continuous skills

gap analysis and evaluation, on the design of targeted training to fill those gaps, and on the development of tailored learning paths.

Personnel development entails addressing some important challenges:

▪ zero accidents – creating a safety culture

▪ zero human errors – ensuring seamless interaction between people and systems, so as to improve process competencies

▪ developing outstanding technical professionals who can assess any facility's current status, develop action plans to reach the desired status,

and implement efficient and effective maintenance systems

▪ developing employees' skills and competencies

▪ achieving excellent process control through the correct implementation of quality procedures

▪ involving and motivating people to assume responsibilities within a continuous improvement environment.

Iveco Group's leadership approach to employee engagement prioritises its people's wellbeing and input, driven by the belief that the more

passionate and engaged people are, the more productive they are, and the more their suggestions are heard, the more they become involved and

feel valued by the Organisation. Indeed, the DOT programme's framework enables personnel to share their contributions and suggest

improvement projects (known as kaizen ) to optimise processes, which boosts their engagement while contributing to the Group's growth. Through

their suggestions and the direct role they play in projects, employees drive and contribute the most to continuous improvement. The use of tools

to share information and collect suggestions is well established at Iveco Group.

In 2024, more than 44,000 employee suggestions were collected across the plants where DOT principles are applied, Furthermore, more than

2,000 DOT projects were implemented throughout the year, generating more than €59 million in savings.

Board Report Complementary Information 141

2. DRIVING INNOVATION ACROSS THE PRODUCT

LIFE CYCLE

Iveco Group's core business is the design, manufacture, and sale of trucks, commercial vehicles, buses, special vehicles, and powertrain

applications. The ongoing research into cutting-edge solutions and collaboration with innovative partners enable the Group’s brands to

manufacture high-performance vehicles that not only have a reduced environmental impact, but also meet customer demand for quality, reliability,

safety, comfort, and cost-efficiency, thereby enhancing overall profitability. The Group's approach is to meet market demand by delivering

products closely aligned with customer requirements, with a particular focus on minimising the total cost of ownership (TCO).

The Technology & Digital function is the single point of reference for new technologies and innovation across the Organisation. It oversees

product engineering, digital product capabilities, and zero-emissions vehicle programmes for each of the Truck, Bus, and Powertrain Business

Units, leveraging technological advancements to accelerate the pace of product development and evolution. The Chief Technology & Digital

Officer is also a member of the Group's Senior Leadership Team (SLT).

In 2024, Iveco Group's R&D expenditure was €802 million, or 5.8% of net revenues from industrial activities, which totalled €14,948 million. R&D

involved approximately 3,700 employees at 30 sites worldwide, with approximately 260 of them located at 6 sites in Emerging Markets.

For more information on R&D, see the ‘Research and Development’ section in this Report.

As regards specific investments in low-carbon opportunities, Iveco Group complies with the requirements of the EU taxonomy classification

system, which provides a list of environmentally sustainable economic activities that support the EU Green Deal objectives (see 2. EU Taxonomy

on Sustainable Activities in this Sustainability Statement).

2.1 COLLABORATING WITH EXTERNAL PARTNERS

Iveco Group's brands have a long-standing tradition of delegating basic research to dedicated partners, and of relying on a number of successful

collaborations with a broad and well-established network of universities across the globe.

In Europe, academic partnerships include those with the following universities: Politecnico di Torino, Politecnico di Milano, Università degli Studi di

Torino, and Università Tor Vergata di Roma (Italy); Univerza V Ljubljani (Slovenia); Technische Universiteit Eindhoven (the Netherlands); Vrije

Universiteit Brussel (Belgium); and the Luxembourg Institute of Science and Technology (LIST). The latter is the latest addition to the Group’s

network, following the announcement of this new R&D partnership in 2024. The collaboration will revolve around LIST's Sustainable Composite

Materials & Manufacturing Innovation Centre (SCMM-IC), an initiative co-funded by the Luxembourg Ministry of the Economy and the European

Regional Development Fund (ERDF). Its aim is to develop composite materials with a very low carbon footprint for transport applications and to

demonstrate their role as key enablers of net zero-emission mobility. In Brazil, academic partnerships include those with the universities

Universidade Federal de Minas Gerais (UFMG) and Pontifícia Universidade Católica de Minas Gerais (PUC-MG). In Australia, the Group

collaborates with the Swinburne University of Technology.

Open Innovation

In recent years, to further strengthen its R&D efforts, Iveco Group has embraced a much broader approach to innovation by taking on the

challenge of playing an active role in the open innovation arena. This has involved expanding the network beyond universities to include new,

innovative entities, as well as the active engagement of the Group's brands in open innovation, creating value for the Organisation and its

stakeholders through successful collaborations with high-tech startups. These partnerships serve a dual purpose: to accelerate the technological

evolution of the Group's products while enhancing their sustainability, and to support the development of startup ecosystems in the local

communities in which it operates, generating benefits and prosperity for all.

In an industry where technology is advancing rapidly and competition is fierce, Iveco Group is able to stay one step ahead thanks to a structured

scouting process (managed directly by the Organisation and/or with the assistance of local advisors and business accelerators), which enables it

to reach out to a few hundred startups each year.

To seize the best growth and collaboration opportunities available, the Group has devised a comprehensive system of tools that enables it to:

participate as a venture client in the co-development of pilot projects (as a preliminary stage to establishing actual partnerships); make minority

investments (hence supporting the growth of startups); or execute actual mergers and acquisitions.

2.2 ECO-DESIGN

One of the most challenging aspects of the design phase is determining and adopting adequate sustainability (i.e., eco-design) criteria to evaluate

a product's impact at each stage of its life cycle, from conception and component sourcing to production, use, and end of life.

Board Report Complementary Information 142

Iveco Group has a dedicated Eco-Design working group tasked with identifying new design criteria to help the Group achieve the strategic

sustainability target included in its Strategic Business Plan: to ensure that 100% of new products are developed using sustainability and/or

recyclability design criteria by year-end 2026. This cross-functional team comprises members from different areas of expertise, such as

Technology, Compliance, Procurement, After-Sales Services, and Sustainability. Throughout the year, the team explored several life cycle

assessment (LCA) approaches to define a consistent and standardised eco-design strategy and methodology across all product platforms. The

goal is to ensure that the Group's portfolio features a substantial proportion of products with either an eco-label or an Environmental Product

Declaration (EPD).

As the process of fine-tuning and incorporating eco-design criteria progresses, Iveco Group continues to work on other fronts to reduce the

environmental impact (and total cost of ownership) of its products. These efforts include promoting the development of more eco-friendly products

right from the design phase, aiming at:

▪ optimising fuel consumption and energy efficiency

▪ reducing CO2 and other polluting emissions

▪ selecting components that:

▪ have a lower environmental footprint

▪ are easy to dismantle

▪ can be repaired or remanufactured

▪ can be recycled at product end-of-life

▪ do not contain regulated substances

▪ enhancing efficiency during use

▪ ensuring longer intervals between maintenance cycles

▪ reducing noise emissions.

Although the Group does not always purchase raw materials directly (with the exception of steel used for direct processing), it constantly

monitors their overall consumption. When designing components for new products (which is done in close collaboration with suppliers),

precedence is given to the use of easily recyclable materials, especially recoverable metals such as aluminium and cast iron, thermoplastics, and

paints with low solvent content.

When designing any new product, the estimated water usage throughout its life cycle and the potential reduction in customer water use are not

considered relevant, because the product’s total water usage over its lifespan and the impact of product use on water quality are minimal in

relation to overall consumption.

Iveco Group is committed to reducing or eliminating regulated substances that pose a potential risk to human health and the environment from

its products and manufacturing operations. To this end, the Group collects detailed information from the supply chain on the individual substances

contained in both parts and whole goods. It is a challenging task, given that obtaining the necessary data requires the cooperation of the entire

supply chain, which may be as many as ten layers deep. Efforts are also being made to eliminate restricted substances right from the design

phase and to register products that fall within the scope of recycling laws.

Iveco Group uses life cycle assessments (LCAs) in response to the growing need to measure and reduce the environmental impacts of its

products, and has performed LCA studies on several of its vehicles and engines to date. Given the lack of an official regulatory framework of

reference, a dedicated cross-functional working group has been established to develop a formal, standardised LCA methodology based on data

granularity and comparability criteria, so as to improve the quality of assessment results and define a more systematic and structured approach to

product ecolabelling. The LCA of the IVECO Daily covers approximately 68% of the total products of the Truck Business Unit.

LCA Assessment and Other Certifications


Description of products	Type of certification
▪ IVECO BUS E-WAY 12m ▪ HEULIEZ GX337 Electric ▪ IVECO BUS E-WAY 18m ▪ HEULIEZ GX437 Electric	▪ EPD (ISO 14025:2006) ▪ EPD (ISO 14025:2006) ▪ EPD (ISO 14025:2006) ▪ EPD (ISO 14025:2006)
▪ F1C diesel engine (light range) ▪ F1C natural gas engine (light range)	▪ ISO 14067:2018
▪ Cursor 13 diesel engine (heavy range)	▪ ISO 14067:2018
▪ IVECO Daily diesel	▪ ISO 14040:2006; ISO 14044:2021

Board Report Complementary Information 143

2.2.1 Resource circularity

Life cycle thinking is one of Iveco Group's strategic sustainability priorities, driving the implementation of a circular product life cycle approach that

ensures resources are used fully and for as long as possible. The main objectives in this area are:

▪ to design all new products in alignment with sustainability and recyclability guidelines, looking at materials, technologies, and reuse potential

from the very first stages of product development in order to maximise product life cycles. Product life cycle assessments (LCAs) are performed

to collect data on exact material composition and estimate the recyclability rates for each

▪ to collect broken or worn-out parts to identify which can be reused, repurposed or recycled, so as to offer customers a consistent range of

remanufactured products while increasing waste recovery and reuse as well as water recycling at Group plants worldwide

▪ to increase the use of electricity from renewable sources.

Remanufacturing worn components (i.e., cores) reduces waste, promotes material reuse, and supports recycling. Additionally, by avoiding the

extraction of new raw materials, it also reduces both energy use and greenhouse gas emissions. Remanufacturing cores is an industrial process

that ensures the same operational performance standards as new, original equipment components, triggering a virtuous cycle of both savings in

raw materials and reductions in materials going to landfill. It also ensures reliability and reduced vehicle downtime for customers at competitive

prices. Indeed, remanufactured FPT Industrial engines and transmissions include a 36-month warranty, which is three times the warranty period

of genuine parts.

Iveco Group manages the overall remanufacturing process, from collecting cores from dealerships to stocking remanufactured products and

selling them to end customers. As a result, the Group's portfolio includes a full range of original spare parts to cover the entire life cycle of many of

its products, as well as a broad selection of remanufactured components. This allows offering like-new quality products, extended warranties, and

good value, since remanufactured parts save customers an average 30% on list price. Two strategic sustainability targets related to

remanufacturing were incorporated into the Group's Strategic Business Plan: to ensure that 100% of recoverable cores from spare parts sold are

returned to the Organisation by year-end 2030 and that 15% of net sales from spare parts are generated by remanufactured components by year-

end 2026. In 2024, the net sales from remanufactured components were 6.8% at global level and 8.4% at European level.

Board Report Selected Financial Data 144

REPORT ON OPERATIONS

SELECTED FINANCIAL DATA


(€ million)	2024(*)	2023(*)	2022(**)	2021(***)	2020(***)
Net revenues	15,289	15,978	14,357	12,651	10,411
EBIT	819	866	466	295	(376)
Profit/(loss) before taxes	608	423	260	180	(488)
Profit/(loss)	538	268	159	76	(372)
Attributable to:
Owners of the parent	535	248	147	52	(408)
Non-controlling interests	3	20	12	24	36
Basic earnings/(loss) per common share (€)(1)	2.00	0.92	0.54	0.19	(1.50)
Diluted earnings/(loss) per common share (€)(1)	1.97	0.91	0.54	0.19	(1.50)
Investments in tangible and intangible assets	939	961	777	563	401
of which: capitalised R&D costs	462	480	390	271	178
R&D expenditure(2)	802	867	634	509	393
Total Assets	19,437	18,385	16,013	16,560	15,631
Total Equity	2,769	2,390	2,391	2,311	2,336
Equity attributable to owners of the parent	2,699	2,354	2,354	2,289	2,268

(*) 2024 and 2023 Income Statement data, investments, and R&D expenditure refer to Continuing Operations only (excluding the contribution of Fire Fighting business, classified as

Discontinued Operations together with the impact of the loss from the disposal of the Fire Fighting business recognised in 2024).

(**) Data as previously reported.

(***) Data as reported in the Report on Combined Financial Statements at 31 December 2021 issued on 24 April 2022.

(1) For the years 2021 and 2020, basic and diluted earnings per share calculation is based on the number of Common Shares at the Effective date of the Demerger.

(2) Includes capitalised development costs and research and development (R&D) costs charged directly to the income statement.

Board Report Risk Factors 145

RISK FACTORS

The following risks should be considered in conjunction with the risks described in the Disclaimer, the Risk Management and Control System

section and the Notes to the Consolidated Financial Statements. All these risks may affect Iveco Group business results and, individually or in the

aggregate, could cause actual results to materially differ from past and projected future results. Although the risks are organised by headings, and

each risk is discussed separately, many are interrelated. It is impossible to predict or identify all risk factors and, consequently, the following

factors shall not be considered a complete list of the risks and uncertainties that may affect the Company. According to the Company’s opinion,

there are no material uncertainties (as defined in paragraph 25 of IAS 1 - Presentation of Financial Statements) about its ability to continue as a

going concern. However, the occurrence of external disruptive events that would impact indistinctly the automotive industry and/or specifically

Iveco Group and beyond the direct control of Iveco Group could jeopardize the ability of Iveco Group to operate in the market.

The present section describes risks that could have a significant impact on the operating results and financial position of Iveco Group. Major risks

events that emerged during the risk assessment process are grouped in four main categories:

a. Strategic risks;

b. Operational risks;

c. Legal & Compliance risks;

d. Financial & Taxation risks.

Iveco Group’s main risk factors identified for each of the above-mentioned risk categories are described below. The order in which they are listed

does not imply ranking in terms of likelihood of occurrence or potential impact.

The below mentioned risk factors are not to be considered comprehensive of all risks identified and evaluated within the annual risk management

process: business-as-usual risks which are considered adequately managed and controlled such that residual risk is considered minor, even if

monitored, are not detailed in this report. Nevertheless, there can be no assurance that any mitigation action will be sufficient to successfully

counter or mitigate potential risks.

Although the Company believes that the risks and uncertainties described below are material risks and uncertainties concerning the Group’s

business and industry, they are not the only risks and uncertainties relating to the Group. Other risks, events, facts or circumstances not presently

known to the Group, or that the Group currently deems to be immaterial could, individually or cumulatively, alone or in combination with other

events or circumstances, prove to be important and may have a significant negative impact on the Group’s business, financial condition, results of

operations and prospects.

STRATEGIC RISKS

Global economic conditions impact Company businesses

Iveco Group results of operations and financial position are and will continue to be influenced by macroeconomic factors – including the level of

consumer and business confidence, changes in interest rates, the availability of credit, inflation and deflation, energy, commodities or other raw

materials prices – which exist in the countries and regions in which Iveco Group operates. Such macroeconomic factors vary from time to time

and their effect on operating results and financial position cannot be specifically and singularly assessed and/or isolated.

Economic conditions vary across regions and countries, and demand for products and services generally increases in those regions and countries

experiencing economic growth and investment. Slower economic growth could have an adverse impact on business, results of operations and

financial conditions. In a weaker economic environment, dealers and customers may delay or cancel plans to purchase Iveco Group products and

services and may not be able to fulfil their obligation to the Group in a timely fashion or at all. In addition, suppliers may be impacted by economic

pressures which may adversely affect their ability to fulfil their obligations, as well as the price or availability of supplies required. In addition,

deterioration of key macroeconomic indicators (such as rising inflation and local currency devaluation) as well as a strengthening of governments’

protectionist policies in some countries, could impact the Group's financial results and business operations particularly in those countries where

macroeconomic conditions remain volatile. If there is continued deterioration in the global economy or the economies of key countries or regions,

the demand for Iveco Group products and services may decrease and may materially and adversely affect results of operations, financial position

and cash flow.

Iveco Group is committed to constantly and closely monitor political, social, economic, and market developments in the countries of interest, both

through specialised internal resources and through providers of analyses. The Group periodically assesses these political, social and economic

risks in the countries it operates in or intends to invest in, also through specific set of defined measures to deal with a potential demand reduction,

and through a strong commitment in investigating and scouting potential alternatives for critical supplies based on risky countries, even if there

can be no assurance these measures prove to be effective.

Risks related to the evolution of geopolitical expectations, also in consideration of global consequential elections

Given the global nature of its activities, the Group is exposed to risks associated with international business activities that may increase costs,

impact its ability to manufacture and sell products and require significant management attention.

Board Report Risk Factors 146

These risks include changes in laws, regulations and policies that affect, among other things: (i) import and export duties and quotas; (ii) currency

restrictions; (iii) interest rates; and (iv) taxes; (v) labour disruptions; (vi) civil unrest and (vii) acts of terrorism.

Further, increasing geopolitical tensions, also driven by transformative shifts in the global geopolitical dynamics, and conflicts continue to

adversely affect macroeconomic conditions, giving rise to regional instability and, if such tensions persist, further uncertainty, which may in turn

affect, directly or indirectly, countries in which the Group operates (such as through logistics, procurement, production or sales). In this regard,

main consequences may include oil and gas price volatility, terrorist attacks (including cyberattacks), lower sales due to economic sanctions or

tariffs and trade restrictions, reputational damage and significant supply chain disruptions. The mitigant actions against such external risks include

establishing institutional relations with Local Authorities in main countries of interest, analysis of the preventive measures and implementation of

emergency plans if needed, safety of people and the management of activities and assets, on top of avoiding operation in countries under

sanctions.

Competition risk, considering both actual players and new entrants

The Group operates in global and regional markets which are highly competitive in terms of product quality, innovation, pricing, fuel economy,

reliability, safety, customer service, and financial services offered. Depending on the particular country and product, the Group competes with

other international, regional and local manufacturers and distributors of commercial and specialty vehicles and powertrains. The Group competes

primarily on the basis of product performance, innovation, quality, distribution, customer service and price. Aggressive pricing or other strategies

pursued by competitors, unanticipated product or manufacturing delays, quality issues, or failure to price products competitively, could adversely

affect the Iveco Group’s business, operating results, and financial position. Additionally, there has been a trend toward consolidation in the truck

industry that has resulted in larger and potentially stronger competitors in this industry.

The Group’s ability to compete successfully in the longer-term will depend, in part, on its ability to keep pace with changes in vehicle technology,

including regarding emissions. Despite Iveco Group efforts in its decarbonisation strategy, there is a risk that some competitors will use their

substantial resources to develop relevant technology and products more rapidly, in larger quantities or at a lower cost, and may therefore have the

ability to achieve economies of scale.

The Group's competitiveness also relies on its ability to keep pace with all types of technological advancements, including the widespread

development of artificial intelligence. This involves not only adopting new technologies but also carefully balancing the associated risks (such as

increasing and more sophisticated cyber-attacks, data privacy and information leakage concerns, intellectual property issues, assisted

misinformation and talent profiles management) to ensure sustainable growth and innovation.

Failure to develop and offer innovative products that compare favorably to those of Iveco Group’s principal competitors in terms of price, quality,

functionality, features, mobility and connected services, vehicle electrification and autonomy, or delays in bringing strategic new products to

market, or the inability to adequately protect the Group’s intellectual property rights or supply products that meet regulatory requirements,

including engine emissions requirements, could result in reduced revenue and market share.

Iveco Group continuously investigates new potential areas of interest for the future development of the ecosystem of transport and logistics, which

also potentially includes the implementation of partnership agreements. Research and development projects are also revised continuously, based

on each project’s technological and commercial relevance. To mitigate the effect of increasing competition from both actual and new, more

innovative and price-aggressive players, the Group constantly monitors demand elasticity and competitors' actions while implementing some

innovation activities or cost optimization actions with the aim to increase its competitiveness. Furthermore, Iveco Group can rely on an extensive

distribution service that provides a competitive advantage. Nevertheless, should the Group be unable to adapt effectively to market conditions,

this could have an adverse effect on its business, results of operations, and financial condition.

Risks related to investments and partnerships

Iveco Group has engaged in the past, and may engage in the future, in investments or merger and acquisition transactions or enter into, expand

or exit from strategic alliances and joint ventures that could involve risks which might prevent the Group from realising the expected benefits of the

transactions or the achievement of strategic objectives or could divert management’s time and attention.

Cooperation with partners in shareholdings and partnerships is of key importance to Iveco Group, both in the transformation towards electric

mobility and comprehensive digitisation, and in connection with mobility solutions. Especially with new technologies, these solutions of

cooperation may help to leverage on synergies and improve cost structures in order to respond successfully to the competitive situation in the

automotive industry.

For example, Iveco Group is exploring possible areas of mutual interest, such as electric powertrains, vehicle automation and connectivity

technology for commercial vehicles with potential partners.

The potential unreliability of key business partners in fulfilling their obligations and promptly delivering the expected volumes, the potential

deterioration in relations with such key partners as well as the challenges of selecting new business partners could impact the ability to promptly

develop innovative products and meet its strategic objectives.

With a view to mitigate such risks, Iveco Group is committed to maintaining a positive trust and long-term relations with strategic partners, sharing

risks as well as opportunities. Before the implementation of a collaboration agreement, the Group performs a series of activities geared at

identifying suitable business partners; moreover, after the stipulation of the relevant agreements, Iveco Group puts in place intensive controls over

the partnership execution and all the necessary actions aimed at resolving any emerging disputes regarding business activities.

Board Report Risk Factors 147

The challenges and uncertainties in selecting trustworthy business partners, their potential unreliability in fulfilling their obligations and promptly

delivering the volumes expected, as well as the potential for deterioration in relations with key partners may impact Iveco Group’s ability to

develop innovative products and meet its objectives.

Transition to zero emission products related risks

Changes in environmental and climate change laws, including laws relating to engine and vehicle emissions, safety regulations, fuel requirements,

restricted substances, or greenhouse gas (GHG) emissions, require significant investments in product designs and increased environmental

compliance expenditures. Emissions regulations are particularly demanding in the European Union (the EU), where the Group conducts most of

its business. For example, the EU fleet targets for 2025, 2030 and 2035 impose significant reductions in vehicle emissions that can only be

achieved using new technologies (such as battery-electric drive systems), which require large capital investments. Failure to comply with the

relevant regulations may result in considerable penalties and reputational damage, potentially leading to the inability to market Iveco Group

products in those regions where regulations are more onerous.

Furthermore, phases of political uncertainty and vulnerabilities in the global economy may generally have negative effects on consumption and

investment decisions by households and companies. The higher costs of low-emission vehicles may represent an obstacle to the rapid shifting

towards a new paradigm of mobility. A lower demand for innovative products due to their higher costs could negatively impact the Group’s

business results and competitive position.

In addition, there is a risk that some of the Group’s competitors will have greater resources than the Group and will be able to respond to such

laws or regulations more rapidly or at a lower cost. (See also “Competition risk, considering both actual players and new entrants”).

To comply with current and future environmental rules in all markets in which its vehicles are sold, Iveco Group must incur substantial capital

expenditure and research and development expenditure to upgrade products and manufacturing facilities.

OPERATIONAL RISKS

Public tender management related risk

Iveco Group supplies complex products with advanced technology and sustainable features, often sold through long-term contracts, with strict

requirements and deadlines, via public tenders. Unexpected cost increases can reduce profits, especially where price renegotiation is not allowed.

Furthermore, in case of Iveco Group does not meet sustainability standards, it may struggle to participate in tenders, especially in countries with

strict regulations. Changes in terms, costs, or sustainability requirements could negatively impact the Group's business if it cannot adapt quickly.

To address these challenges, Iveco Group is improving its ability to meet customer needs by constantly monitoring regulatory changes in

sustainability to anticipate new demands, indexing contracts to raw material or energy prices, implementing an internal Human Rights policy, and

providing whistleblowing channels for employees and third parties.

Risk related to the supply of utilities, raw materials, parts and components

Iveco Group relies upon many suppliers for raw materials, parts and components that are required for product manufacturing. The Group cannot

guarantee that it will be able to maintain access to raw materials, parts, and components, and in some cases, access may be affected by factors

outside of Iveco Group’s and its direct suppliers’ control. Certain components and parts used in Iveco Group products are available from a single

supplier and cannot be quickly sourced from other suppliers. Significant disruptions to the supply chain resulting from shortages of raw materials,

components, and whole goods may adversely affect the ability to meet customer demand. Furthermore, global logistic network challenges

(including ocean freight capacity constraints, international port delays, railway and air freight capacity, and labour availability constraints) may

result in delays, shortages of key manufacturing components, increase of order backlogs, and increase on transportation costs. While Iveco

Group diligently monitors supply chain risk and seeks to respond promptly to address supply chain and logistical challenges, there can be no

assurance that mitigation plans will be effective to prevent disruptions that may arise from shortages of materials used in production due to

unpredictable external factors. Uncertainties related to the magnitude and duration of global supply chain disruptions may adversely affect the

Group’s business and outlook.

Furthermore, the price volatility of raw materials, utilities and components, particularly during times of economic and volumes volatility or

regulatory instability or in response to changes in tariffs, significantly increases costs of production, which could have a material adverse effect on

the Group’s business, results of operations and financial condition.

Spot purchases in case of favorable market opportunities, or activation of hedging strategies (after assessing their cost-effectiveness) are

considered. In addition to monitoring materials availability, Iveco Group increased the frequency of Suppliers Risk Management to bi-weekly

meetings to analyse critical suppliers and to put in place potential countermeasures.

Operational risks, including process design and production

Production risks include all those factors which could impact production planning and capacity, such as:

▪ the incorrect estimation of demand causing under or over production capacity utilisation (which could in turn result in increased costs, delivery

delays, and quality issues due to excessive work stress), and;

Board Report Risk Factors 148

▪ unforeseen disruptions to a production facility which could be caused by several different incidents.

The success of Iveco Group products depends on its ability to maintain or increase market share in existing markets and to expand into new

markets through the development of innovative, high-quality products that provide adequate profitability. The achievement of these objectives is

dependent on several factors, including the ability to design and produce products that meet customers’ quality requirements, and through the

increased collaboration and synergies between engineering and manufacturing as well as the ability to develop connected and digital solutions.

The Group already carried out significant investments aimed at optimizing production capacity. Moreover, Iveco Group strategic plan covers

investments in innovation designed to further develop existing and create new product and service offerings responsive to customer needs,

including developing and delivering connected and digital solutions, automation and electrification.

In order to guarantee a high-quality level of existing and new products, Iveco Group implemented a continuous monitoring system of technical

KPIs (key performance indicators) and KAIs (key activity indicators), as well as additional quality checks on reworks related activities.

Information technology (IT) risks, including cybercrimes

Iveco Group relies upon IT systems and networks, some of which are managed by third parties, in connection with a variety of business activities.

These systems include supply chain, manufacturing, distribution, invoicing, collection of payments from dealers and customers of the Group's

financial services business, and connectivity services. The Group uses IT systems to record, process and summarise financial information for

internal reporting purposes and to comply with regulatory financial reporting, legal and tax requirements. Additionally, Iveco Group collects and

stores sensitive data, including Intellectual Property (IP), proprietary business information as well as customers, suppliers and dealers’ proprietary

information and personally identifiable information in data centres and on IT networks. Operating these IT systems and networks, and processing

and maintaining data in a secure manner is critical to the Group's business operations and strategy.

The Group’s IT systems may be subject to damage and/or interruption from, amongst other things, power outages or computer, network, and

telecommunications failures and usage errors by its employees, which may result in process inefficiencies and potential business interruptions. If

the Iveco Group’s IT systems are damaged or cease to function properly, the Group may have to make a significant investment to fix or replace

them. Moreover, the IT network could also be disrupted by the unavailability of the Group's data centres due to force majeure events as well as

the discontinuation of services by cloud providers, with consequent impacts on business continuity.

Increased IT security threats (such as worms, viruses, malware, phishing attacks, ransomware, and other malicious threats) and sophisticated

computer crimes pose a significant risk to the security of Iveco Group’s systems and networks and the confidentiality, availability and integrity of

data. The foregoing risks are heightened by the Group's hybrid working model which allows employees to work from home, and use networks

other than that of the Group, with a consequent potential increase of the scope for attacks.

In addition, the rising presence of more connected vehicles, including autonomous driving features, has exposed automotive manufacturers to an

increasing number of cyberattacks. Attackers work to get access to vehicles’ internal networks potentially to steal personal data, compromise

information or navigation global positioning system.

Finally, the current situation related to the geopolitical escalations has led to a sharp increase in cyberattacks to critical systems and services

(including intelligence, military, manufacturing, financial, and energy).

While Iveco Group actively manages IT security risks within its control through security measures, business continuity plans and employee

training around phishing and other cyber risks, these attacks have nonetheless increased and there can be no assurance that mitigation actions

will be sufficient to successfully prevent attacks or to mitigate potential risks to systems, networks, data, and products. Furthermore, third parties,

including internet, mobile communications technology and cloud service providers, pose their own IT risks to the Group.

Security breaches could also result in litigation, regulatory action, unauthorised release of confidential or otherwise protected information and

corruption of data, as well as remediation costs and higher operational and other costs aimed at implementing further data protection measures.

To ensure effective, reliable, and relevant operations Iveco Group needs to constantly improve its IT ecosystem, including the latest hardware and

software technologies and effective IT organisational mechanisms, as well as how to utilise the potential of data in day-to-day business. In this

regard, Iveco Group is implementing a series of strategic initiatives covering key business areas to progressively eliminate obsolescence and

optimize the number and complexity of IT systems.

Moreover, Iveco Group has implemented measures of governance, response, and monitoring of cyber-attacks, as well as compliance processes

carried out through the involvement of specialised personnel and an advanced use of IT security technologies. Iveco Group applies procedures

and protocols based on the sector best practices and on consolidated, tested international standards with the goal of preventing and mitigating its

exposure to cyber risk, as well as security additions to meet clients’ requirements. Specifically, the Group records many attempts (main external

sources of attacks are malware, phishing, internet applications), but they are mitigated by the multifactor authentication system in place (including

dealers and third parties) and the adoption of the latest available technologies to block and detect anomalous behavior.

The mitigation of this risk is also guaranteed by the presence of Security Operations Centers (SOC) and the Cybersecurity Incident Response

Team (CSIRT) as well as by the implementation of a Cyber Crisis Management Framework. In addition, cyber awareness activities are

periodically carried out with the aim of increasing the employees’ level of training and knowledge. Despite the opportunity to transfer risk, the

amount or scope of insurance coverage may be inadequate to cover claims or liabilities relating to a cybersecurity attack. For additional

information on IT Risks refer to the section "Risk Management and Internal Control System" of this annual report.

Board Report Risk Factors 149

Risks related to people and culture

Iveco Group’s ability to (i) compete successfully, (ii) manage its business effectively, (iii) expand its business and (iv) execute its growth strategy,

depends, in part, on the Group’s ability to attract, motivate and retain qualified personnel in key functions and markets with the requisite

education, skills, background, talents, and industry experience. Failure to attract and retain qualified personnel, whether as a result of an

insufficient number of qualified applicants, difficulty in recruiting new personnel, or the inability to integrate and retain qualified personnel, could

impair the Group’s ability to execute its business strategy and could adversely affect its business.

Furthermore, in many countries where the Group operates, employees are protected by laws and/or collective labour agreements that guarantee

them, through local and national representatives, the right of consultation on specific matters, including repurposing, downsizing or closure of

production facilities and reductions in personnel. Strategically repositioning business activities requires flexibility in respect of laws and/or

collective labour agreements. The ability to efficiently deploy personnel or implement permanent or temporary redundancy measures is subject to

government approvals and/or the agreement of labour unions where such laws and agreements are applicable. Furthermore, the Group is at risk

of work interruptions or stoppages that could impact the volume of production, with potential material adverse effects on the Group's results of

operations and financial condition. To reduce such potential risk, the Group put in place continuous communication with all internal stakeholders

and unions to monitor the situation and negotiation for the renewal workers' collective agreement in many countries.

Labour relations might also be affected by high inflation rates in certain of the countries in which the Group operates, leading to strikes and

additional costs which in turn may have a material adverse effect on the Group's sales, operating results, and financial condition.

To keep up with new technical skills required by the current market environment, the Group is putting in place a strong re-skilling campaign as

well as a definition of salary packages in line with the market with the aim of attracting the best talents.

Iveco Group is committed in implementing a trusted and healthy work environment, through a strong commitment to safety and health and high

standards for rights at work, social dialogue and diversity and inclusion. In particular, the Group developed challenging Diversity, Equity and

Inclusion (DEI) plan, which includes an increase in the number of office positions held by female office workers.

Risks related to product distribution methods

The Group sells most of its vehicles through independent dealers, which comes with certain risks. These dealers might make poor inventory

decisions, have financial problems, or need support from the Group, leading to higher costs.

Rising costs and challenges for small dealers can lead to fewer dealers and less market coverage, affecting the Group's competitive edge.

Additionally, if dealers misuse product warranties, it could result in extra costs for the Group.

To reduce these risks, Iveco Group is taking steps to monitor dealer performance, stock levels, and financial health. They are also conducting

audits to prevent warranty misuse. These actions aim to protect the Group's sales, operating results, and financial condition.

Risks related to health, safety, and the environment

Despite the Group's adverse appetite to HSE risks, the possibility that incidents are detrimental to people's health and to the environment cannot

be completely ruled out, also taking into consideration the fact that the risks connected with ordinary operations is mainly related to human

behaviors. Even though Iveco Group (i) has specific know-how and competencies constantly kept up to date, (ii) has implemented internal

procedures and relevant controls for the execution of its operations, and (iii) regularly carries out maintenance work on its assets in order to

monitor their quality and level of reliability, it is not possible to fully exclude the occurrence of incidents on assets or facilities during the execution

of works, which may cause:

▪ Serious injuries to employees, including long-term disabilities and fatalities, caused by work-related accidents

▪ Environmental pollution generated by an improper execution of Group’s activities

In order to reduce the risk exposure, Iveco Group put in place many actions and controls starting from the set-up of a Health, Safety &

Environment Central organization and an Occupational Health, Safety & Environment Management Systems implemented and certified according

to ISO45001. Relevant reporting is constantly updated and monitored, and personnel relevant training is periodically supplied.

Extreme natural events exacerbated by ongoing climate change

The analysis of climate related risks has been carried out by a detailed internal task force reported to the management. As a result, risks related

to climate change, to which Iveco Group's activities are intrinsically exposed, have been classified into the following categories:

▪ physical risks, i.e., risks arising from physically observable climatic phenomena

▪ transition risks, i.e., risks arising from the transition phase that aims to reduce emissions and thus mitigate the effects of climate change.

Although most plants are located in areas which do not present particularly high-risk exposures, extreme natural events still pose a risk to the

Group given the significant damages they can generate. Overall, considering the mitigators in place and the nature of the risks, most relevant

economic exposures for Iveco Group sites are related to river flood and hailstorm.

In particular, such events, exacerbated by ongoing climate change, can result in damage to a Group production site/critical asset and/or

interruption of production.

Board Report Risk Factors 150

In order to reduce risk exposure, Iveco Group already put in place mitigation actions such as (but not limited to) insurance premium increase,

presence of an Internal Emergency Team managed by Industrial Security, installation of additional equipment able to mitigate impacts in case of

risk occurrence and strengthening of the fire department and training of teams and volunteer firefighters.

To comply with current and future environmental rules in all markets in which its vehicles are sold, Iveco Group must incur substantial capital

expenditure and research and development expenditure to upgrade products and manufacturing facilities.

For further details, refer to section “Sustainability Statement”, paragraph “3.2 Managing Climate Related Risks and Opportunities”.

LEGAL & COMPLIANCE RISKS

Risk related to compliance with product, process and supply chain regulations

Given stakeholders’ expectations, the increasingly demanding regulatory requirements (in terms of complexity and/or country-specific provisions),

and the intricacy of managing product-specific sustainability aspects to meet requirements along the entire value chain (such as accountability

and clear time-sensitive targets, among others), Iveco Group must devote a significant level of effort to avoid the risk of non-compliance with

product, process and supply chain regulations.

Failure to comply with such regulations or to meet stakeholders’ expectations with regards to compliance and product sustainability could impact

the Group’s reputation or could impede the production, distribution, marketing and sale of the Group’s products, which could materially adversely

impact the Group’s business, financial condition or results of operations.

Besides continuous monitoring of regulations ( including gap analysis on the actions to be implemented to ensure compliance with any upcoming

directive and on-site audits at Group production sites) and the presence of a whistleblowing channel open to both employees and third parties,

Iveco Group confirmed the participation in the Open-ES platform, to encourage suppliers’ awareness about ESG issues (including Human Rights),

supporting suppliers' qualification and monitoring and including sustainability scores as a criterion for suppliers’ selection. Furthermore, in order to

mitigate and prevent to the extent possible risk of Human Rights violation by Vendors, Iveco Group provides for mandatory signature of the

Supplier Code of Conduct by each supplier.

Risks related to legal proceedings involving the Group

Iveco Group is party to judicial, tax and administrative legal proceedings. For a summary of the most significant cases, see Note 27

"Commitments and contingencies" to the Consolidated Financial Statements at 31 December 2024. Given the intrinsic and ineliminable risk that

characterises legal proceedings, while the Group regularly conducts the necessary assessments, including on the basis of applicable accounting

standards, it is not possible to exclude the possibility that Iveco Group might in future face payment obligations for damages either not covered by

the legal fund, in whole or in part, which either are uninsured or exceed the maximum sum available under applicable insurance policies.

Furthermore, in relation to legal proceedings brought by Iveco Group or in which Iveco Group is a defendant, Iveco Group may have to bear

further costs associated with potentially prolonged court proceedings or out of court negotiations and settlements.

To mitigate these risks, Iveco Group implements actions aiming at constantly strengthening its internal control system and also avails itself of in-

house professionals and external consultants who are committed to support Iveco Group in its risk anticipation and mitigation efforts, and

represent the Group in legal proceedings.

Risk related to non-compliance with laws and regulations or with compliance policies

Although the Group aims to be fully compliant with applicable laws and regulations, these laws and regulations may change over time and/or be

subject to different interpretations and the Group's compliance controls, policies, and procedures in place may not in every instance protect the

Group from acts committed by its employees, agents, contractors, or collaborators, that violate the laws or regulations of the jurisdictions in which

Iveco Group operates, including in employment matters, corrupt practices or breaching environmental, competition and other applicable laws and

regulations. Such misconduct could expose the Group to investigations, and monetary and injunctive penalties. Furthermore, Iveco Group

operates in some countries characterised by a high level of fraud and corruption. In the context of risks related to possible fraud or wrongdoing by

employees or third parties, Iveco Group is also exposed to risks related to the protection of information and know-how. The Group relies on

sensitive information, data and know-how, which is processed and contained in documents and/or electronic format. The unauthorised use and/or

disclosure of such information, data and know-how by employees or third parties may amount to a breach of applicable laws and regulations, and

might cause damage to the Group's reputation. Finally non-compliance issues or the incorrect application of the Regulation (EU) 2016/679

(General Data Protection Regulation) (GDPR) or other data protection laws may occur within the Group which in turn could result in the

application of sanctions to the detriment of Iveco Group. Actual or alleged violations of any of these laws and regulations could adversely impact

the operating results and financial condition of the Group and could damage its reputation, as well as its ability to conduct business.

Board Report Risk Factors 151

Among the various initiatives that Iveco Group has put in place to mitigate these risks, a “Group Integrated Compliance Program” has been

developed, that provides, among other, for a) compliance guidelines for the benefit of all the Group's affiliates, b) for an update of the

“Organisational Models” of affiliates in scope along the provisions of the Italian Legislative Decree 231/2001 and c) for a regular review of the

fundamental Group policies. Moreover, a structured framework is in place, in line with applicable legislation and with the legal systems of the

countries in which Iveco Group operates. Iveco Group’s Code of Conduct provides that “Anti-corruption laws prohibit directly or indirectly paying,

or promise to pay, of anything of value to any governmental employee/official, political party, party employee/official, or candidate for political

office for the purpose of influencing an official act or decision to obtain business for the company”. Iveco Group provides employees periodic

trainings to increase awareness about the importance of compliance topics; it has appointed a manager in charge, among other, of monitoring

prevention and education on Anti-corruption, a dedicated compliance officer in some countries (e.g. France) and a “lead” professional as a point

of reference to contribute to awareness and prevention of competition law issues. Iveco Group periodically performs general audits, in addition to

specific ones for suspected offences, also using external consultants and considering objective fraud indicators and red flags. A whistleblowing

channel open to both employees and third parties is in place and the Compliance Department includes a dedicated function (Investigation

Governance) that manages whistleblowing reports and analysis of facts relating to misconduct. Notwithstanding all the above, it is not possible to

exclude the possible occurrence of fraudulent or unlawful conducts.

FINANCIAL AND TAXATION RISKS

Risks related to exchange rate fluctuations, interest rate changes and other market risks

Iveco Group may face risks from currency devaluations (which is a downward adjustment of a country’s official exchange rate) in specific markets.

Such currency devaluations could result in a diminished value of the liquidity funds denominated in the local currency of the country experiencing

the devaluation.

Iveco Group’s counterparties could default, be unable to pay the amounts owed to it in a timely manner or meet their performance obligations

under contractual arrangements with the Group.

In the event of a rating downgrade or severe macroeconomic downturn, Iveco Group might have difficulties to raise funds and might have to pay

higher spreads. In terms of interest rate risk, the Group is actively managing it keeping around 50% exposure vs floating rate with a defined

tolerance around that threshold.

Risks related to fluctuations in interest rates and exchange rates of foreign currency are mitigated by hedging strategies. Also, Financial Services

implements an ALM (Asset and Liability Management) matching policy to offset the impact of differences in interest rates on the financed portfolio

and the related liabilities.

Although Iveco Group seeks to manage its currency risk and interest rate risk, including through hedging activities, there can be no assurance

that it will be able to do so successfully, and the Group’s business, results of operations and financial position could be adversely affected. In

addition, by utilising hedging strategies, Iveco Group potentially foregoes the benefits that may result from favourable fluctuations in currency

exchange and interest rates.

In addition to the above, Iveco Group also faces the risks related to financial planning uncertainty and relevant impacts on cash flow.

The volatility of market conditions and the subsequent possible deterioration of the customers’ financial position can cause delays in placing

orders or receiving payments from clients. Such events, combined with the seasonality which characterises the industry in which the Group

operates, are the main causes of the Company cash flow fluctuations, which may occur despite the mitigation plans implemented by the Group.

Therefore, Iveco Group is exposed to the risk of deterioration of working capital, which could lead to economic and financial impacts, as well as a

deterioration of the reputation of the Group in the industry and in the financial markets.

Risks related to difficulties in obtaining financing or refinancing existing debt

Iveco Group’s performance depends on, among other things, its ability to finance debt repayment obligations and planned investments from

operating cash flow, available liquidity, the renewal or refinancing of existing bank loans and/or facilities and access to bank lending or other

sources of financing such as asset-backed securitisation transactions. In addition, the Group’s investment strategies may at times require funds in

excess of those generated by the Group’s operations. Consequently, Iveco Group could find itself in the position of having to seek additional

financing and/or having to refinance existing debt, including in unfavourable market conditions with limited availability of funding and a general

increase in funding costs. Instability in global capital markets, including market disruptions, limited liquidity and interest rate and exchange rate

volatility, could affect the Group’s access to sources of financing or increase the cost of the Group’s short and medium and long-term financing.

Any difficulty in obtaining financing on acceptable terms or at all could have a material adverse effect on the Group’s business, results of

operations and financial position. In order to mitigate its exposure to funding risk, Iveco Group monitors on periodical basis inventory and funding

evolution.

Board Report Risk Factors 152

Risk related to the Group’s leverage and debt service obligations

The Group relies in part on external debt financing and is therefore subject to potential risks to its operations and financial results, which may

include (i) the inability to secure additional funds for capital expenditures, debt service requirements or general corporate purposes; (ii) the inability

to invest in the development or introduction of new products or new business opportunities; and (iii) the Group being unable to adjust rapidly to

changing market conditions.

These risks may be exacerbated by volatility in the financial markets, which may be caused by strains on the finances and creditworthiness of

several governments and financial institutions and from concerns about global economic growth, particularly in emerging markets. See also

“Global economic conditions may impact the Group’s businesses” above.

See “Risks related to exchange rate fluctuations, interest rate changes and other market risks” above.

Risks related to restrictive covenants in the Group’s debt agreements

Iveco Group has established its own centralised treasury. In order to fund its own treasury facilities, from time to time it enters into agreements

governing the Group’s financing instruments, including bank debt. According to standard market practice, the agreements governing debt

instruments, depending on the rating status of the debtor and market conditions at the time of the execution of such financing instruments, could

contain covenants restricting the Group’s ability to, among other things: (i) incur additional indebtedness by certain subsidiaries; (ii) make certain

investments; (iii) enter into certain types of transactions with affiliates; (iv) sell or acquire certain assets or merge with or into other companies;

and/or (v) pledge assets as security for other obligations. A breach of one or more of the covenants could result in adverse consequences that

could negatively impact the Group’s business, results of operations, and financial position. These adverse consequences may include the

triggering of cross-default clauses whereby other outstanding debt under other credit facilities of Iveco Group existing at the time of such cross-

acceleration, ultimately resulting in an obligation to redeem such indebtedness, termination of existing unused commitments by the Group’s

lenders, refusal by the Group’s lenders to extend further credit under one or more of the facilities or to enter into new facilities or the lowering or

modification of the Issuer’s credit ratings or those of one or more of its subsidiaries.

Risk related to Financial Services activities

As Financial Services provides financing for a significant portion of Iveco Group’s sales worldwide, the Group’s operations and financial results

could be impacted materially should negative economic conditions affect the financial services industry.

Negative economic conditions can have an adverse effect on the financial services industry in which Financial Services operates. Financial

Services, through wholly owned financial services companies, joint ventures and third-party commercial agreements, provides financing for

material portion of Iveco Group’s sales worldwide. Financial Services may experience credit losses that exceed its expectations and adversely

affect its financial condition and results of operations. Financial Services’ inability to access funds at cost-effective rates to support its financing

activities could have a material adverse effect on Iveco Group’s business. Financial Services’ liquidity and ongoing profitability depends largely on

timely access to capital in order to meet future cash flow requirements and to fund operations and costs associated with engaging in diversified

funding activities.

Iveco Group’s operations and financial results could be impacted materially should new regulations or changes to existing regulations affect the

financial services industry. In addition, an increase in delinquencies or repossessions could adversely affect the results of Financial Services.

Further information on Iveco Group's financial risks is provided in Note 18 "Derivative assets and derivative liabilities" and in Note 30 "Information

on financial risks" to the Consolidated Financial Statements.

The Group may incur additional tax expense or become subject to additional tax exposure

Iveco Group is subject to income taxes in many jurisdictions. The Group’s tax liabilities are dependent upon the location of earnings among these

different jurisdictions. Iveco Group’s future results of operations could be adversely affected by changes in the consolidated effective tax rate as a

result of a change in the mix of earnings in countries with differing statutory tax rates, changes in the Group’s overall profitability, changes in tax

legislation and rates, changes in generally accepted accounting principles and changes in the valuation of deferred tax assets and liabilities. If the

Group’s effective tax rate were to increase, or if the ultimate determination of Iveco Group’s taxes owed is for an amount in excess of amounts

previously accrued or paid, Iveco Group’s operating results, cash flows, and financial position could be adversely affected. For further information,

see Note 9 “Income tax (expense) benefit” to the Consolidated Financial Statements.

In addition, tax laws are complex and subject to varied and subjective interpretive decisions. As Iveco Group will periodically be subject to tax

audits aimed at assessing the Group’s compliance with direct and indirect taxes, the tax authorities may not agree with the Group’s interpretations

of, or the positions that the Group has taken or intends to take on, tax laws applicable to Iveco Group’s ordinary activities and extraordinary

transactions. In case of challenges by the tax authorities to the Group’s interpretations, Iveco Group could face prolonged tax proceedings that

could result in the payment of additional tax, interest and penalties, which could have a material adverse effect on the Group’s operating results,

business and financial condition.

Board Report Risk Factors 153

In order to reduce its exposure to taxation risks, Iveco Group put in place several mitigation actions aimed at preventing risk or reducing its impact

in case of occurrence, such as the implementation of a Tax Control Framework (integrated within the Group’s Internal Control System), the

adherence to the Italian Cooperative Compliance Regime, and the use of other available regulatory tools for preventive dialogue with Tax

Authorities (such as Advance Pricing Agreements on transfer pricing matter).

Board Report Business Overview 154

BUSINESS OVERVIEW

GENERAL

Iveco Group is the holding company of a leading automotive group engaged in the design, production, marketing, sale, servicing, and financing of

trucks, commercial vehicles, buses and specialty vehicles for defense and other uses, as well as combustion engines, alternative propulsion

systems, transmissions and axles for those vehicles and engines and alternative propulsion systems for agricultural and construction equipment,

marine and power generation applications. The Group has manufacturing, commercial and financial services companies located in 34 countries

and a commercial presence in approximately 158 countries.

On 13 March 2024, Iveco Group and Mutares SE & Co. KGaA announced the signing of a definitive agreement for the transfer of ownership of

Magirus GmbH and its affiliates performing Fire Fighting business. The transaction was completed on 3 January 2025.

According to IFRS 5 – Non-current Assets Held for Sale and Discontinued Operations, as the sale became highly probable in March 2024, the

Fire Fighting business met the criteria to be classified as a disposal group held for sale; it also met the criteria to be classified as Discontinued

Operations. In accordance with applicable accounting standards, the figures in the Income Statement and Statement of Cash Flows for 2023

comparative periods have been represented consistently. Refer to the Notes to the Consolidated Financial Statements, paragraph "Discontinued

Operations - Fire Fighting Business", for additional details.

On 14 March 2024, during its Capital Markets Day, Iveco Group released a new segment reporting structure for its Continuing Operations,

expanding its reportable segments from three segments (Commercial & Specialty Vehicles, Powertrain and Financial Services) to five reportable

segments (Truck, Bus, Defence, Powertrain and Financial Services). The Truck, Bus and Defence business units, along with the Fire Fighting

business unit (reported as Discontinued Operations from the first quarter of 2024), were previously part of the Commercial and Specialty Vehicles

segment. As of 31 December 2024, Iveco Group had therefore the following five operating segments: