ivecogroupnv-2025-12-31-1-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 .........................................................................	8
SUSTAINABILITY STATEMENT ......................................................................................................................................	9
COMPLEMENTARY INFORMATION ................................................................................................................................	149
REPORT ON OPERATIONS ............................................................................................................................................	159
SELECTED FINANCIAL DATA .....................................................................................................................................	159
RISK FACTORS .........................................................................................................................................................	160
BUSINESS OVERVIEW ..............................................................................................................................................	167
RESEARCH AND DEVELOPMENT ..............................................................................................................................	180
HUMAN RESOURCES ................................................................................................................................................	182
OPERATING AND FINANCIAL REVIEW .......................................................................................................................	183
RISK MANAGEMENT AND INTERNAL CONTROL SYSTEM .........................................................................................	207
GOVERNANCE STATEMENT .....................................................................................................................................	216
REMUNERATION REPORT ........................................................................................................................................	239
MAJOR SHAREHOLDERS ..........................................................................................................................................	258
SUBSEQUENT EVENTS FINANCIAL GUIDANCE .........................................................................................................	259
IVECO GROUP CONSOLIDATED FINANCIAL STATEMENTS AT 31 DECEMBER 2025 .............................................................	261
CONSOLIDATED INCOME STATEMENT .....................................................................................................................	262
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME ..................................................................................	263
CONSOLIDATED STATEMENT OF FINANCIAL POSITION ...........................................................................................	264
CONSOLIDATED STATEMENT OF CASH FLOWS .......................................................................................................	266
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY ...........................................................................................	268
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS ......................................................................................	269
COMPANY FINANCIAL STATEMENTS AT 31 DECEMBER 2025 ...............................................................................................	344
INCOME STATEMENT ................................................................................................................................................	345
STATEMENT OF FINANCIAL POSITION ......................................................................................................................	346
NOTES TO THE COMPANY FINANCIAL STATEMENTS ...............................................................................................	347
OTHER INFORMATION ..........................................................................................................................................................	370
INDEPENDENT AUDITOR’S REPORT .....................................................................................................................................	371
LIMITED ASSURANCE-REPORT OF THE INDEPENDENT AUDITOR ON THE SUSTAINABILITY STATEMENT ..........................	380

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 2025)

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

Disclaimer: this document is a PDF copy of the Annual Report of Iveco Group N.V. at 31 December 2025 and is not presented in the ESEF-format as specified in

the Regulatory Technical Standards on ESEF (Delegated Regulation (EU) 2019/815). The official Annual Report of Iveco Group N.V. in ESEF single reporting

package, as filed with the AFM, is available at https://www.ivecogroup.com/investors/financials_and_news/financials

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
Olof Persson
Senior Non-Executive Director
Lorenzo Simonelli^(1)(*)
Non-Executive Directors
Judy Curran^(2)(3)(*)
Tufan Erginbilgic^(2)(3)(*)
Clara Fain⁽¹⁾
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 16 April 2025.

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; 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 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

Board of Directors and Auditor 3

and defective product claims, and emissions and/or fuel economy regulatory and 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,

The strength of Iveco Group is built on a history of pride in our products, care about our customers and commitment to the long-term growth of our

operations.

In 2025, we celebrated our 50^th anniversary, marking half a century of innovation, dedication and progress. Achieving this milestone has only been

possible because of the hard work and perseverance of our colleagues and dealers, and the support of our customers – and we would like to

thank all of them for their commitment and support.

We commemorated this milestone with a series of events at our sites around the world, celebrating our industrial heritage and our vision for the

future of transport. The centrepiece of these celebrations was the four-day ‘50xBeyond’ event held in Turin, Italy – the birthplace of IVECO and

the home of our Group’s headquarters. We welcomed customers, dealers, partners and employees and took them on a journey through IVECO’s

legacy of ingenuity and progress, spotlighting the brand’s distinctive position in the market.

We also took the opportunity to unveil the ambition that will drive IVECO into the future: Spirito in Movimento. This speaks to who we are, and

where we’re going – proud of our origins, while always looking towards the future.

As well as celebrating this milestone, 2025 was also the start of a new chapter for our company. In July 2025 we announced the sale of Iveco

Group’s defence business to Leonardo, allowing for the creation of an Italy-based European land defence leader. We also announced Tata

Motors’ voluntary tender offer for the acquisition of Iveco Group, excluding defence, to form a major player in commercial vehicles with the reach,

product portfolio and industrial capability of a global champion. These two transactions will secure the future of our businesses, giving each the

scale it needs to compete and to continue to deliver the products our customers value, embracing Spirito in Movimento – while safeguarding our

employees and providing an exciting future for our dealers.

Alongside preparing for these transformative moves, we remained vigilant in managing our industrial performance. In the face of the declining

European market for light commercial vehicles and heavy-duty trucks, we tightened inventory controls, maintained cost discipline and accelerated

our Efficiency Programme.

FINANCIAL HIGHLIGHTS

The challenges we experienced in 2025 – from cooling demand in key segments to complex production transitions – impacted on our full-year

financial results. Two factors in particular weighed on the volumes and profitability of the Group and affected our full-year free cash flow

performance. First, the declining European market for both light commercial vehicles and heavy-duty trucks; and second, a delay in the production

ramp-up of the newest models in our state-of-the-art electric city buses at our Annonay plant in France. To counterbalance these challenges, we

balanced pricing with market share in our Truck division and managed channel inventory, lowering it substantially in Europe to offset higher dealer

inventory in South America. We also defended our leadership in the LCV chassis cab sub-segment and maintained pricing discipline across our

medium and heavy-duty ranges during the final introductory phase of our Model Year 2024 in Europe.

Our Consolidated Net Revenues for our continuing operations were 13.4 billion euros at the end of 2025, down 7% compared to the previous

year, and our Consolidated EBIT was 538 million euros compared to 729 million euros at the end of last year. Industrial Activities Net Revenues

stood at 13.1 billion euros, which is 7% lower than last year and slightly below the updated guidance provided at the beginning of November.

Industrial Activities Adjusted EBIT⁽¹⁾ was also below the updated guidance, closing the year at 529 million euros compared to 761 million euros

last year. Free Cash Flow⁽¹⁾ was negative 109 million euros for continuing operations.

Underneath these results there were specific dynamics in each of our business units that it is helpful to unpack.

First, the demand for trucks in Europe remained low across ranges throughout the year – particularly in the chassis cab sub-segment. This

impacted profitability which was partially offset by cost control measures. European deliveries for the full year dropped year-over-year, especially

for light commercial vehicles, which were down 23% versus the previous year. At the end of 2025, worldwide Truck book-to-bill came in close to

1.0x, up 27 basis points compared to last year.

Letter from the Chair and the Chief Executive Officer 5

Our electric vehicle delivery volumes grew across all ranges in 2025, despite softened market demand, showing the competitiveness of our

electric product line-up. Our position will be further strengthened in the first half of 2026 with the inaugural distributions of the new eJolly and

eSuperJolly 100% battery-electric vans. These two models, resulting from the partnership with Stellantis Pro One, complete IVECO’s offering of

battery-electric light commercial vehicles and secure our position as the only truck manufacturer to offer a comprehensive, fully electric line-up

from 2.5 to up to over 16 tons.

In our Bus division, profitability improvements were tempered by additional costs associated with the delay in the production ramp-up at our

Annonay plant in France and supplier delays. Consequently, free cash flow generation was negatively impacted by 200 million euros. We will

ensure that the unfinished products in our inventory at the end of last year are deployed in 2026, freeing up this working capital. Despite these

constraints, our order book for buses remains strong, providing us with clear visibility throughout 2026.

Our Powertrain business benefitted from careful cost control and improved operational efficiency. In the third quarter, we began to see

increasingly positive signs of recovery in third-party customers. This, plus a positive product mix and disciplined pricing, drove profitability

improvements by year-end. During the fourth quarter, we reinforced our leadership at the forefront of the European agricultural sector by starting

to supply N67 engines for the new Deutz-Fahr 8 series tractor. Our engine volumes gained momentum overall, particularly in the fourth quarter,

and we expect to continue at a similar pace throughout 2026.

EXTRAORDINARY TRANSACTIONS

We began the year by concluding – as planned – the transfer of Magirus and its affiliates to Mutares, an operation initiated in 2024. This enabled

us to create the ideal configuration for the significant strategic developments that followed.

On 30^th July 2025 we announced two extraordinary transactions: one involving our Defence business and the other encompassing the Group’s

Truck, Bus, Powertrain and Financial Services business units.

Our first announcement was the signing of an agreement to sell our defence business – IDV and ASTRA brands – to Leonardo, a leading

European defence and security company. The transaction is poised to create an Italy-based, European champion in the land defence segment,

with the scale and capabilities to compete globally. It is expected to be complete within the first quarter of 2026, subject to customary regulatory

approvals and carve-out completion. On completion, Iveco Group intends to distribute the net proceeds of the transaction, subject to closing

adjustments, to shareholders through an extraordinary dividend.

On that same day, together with the global automotive leader Tata Motors, we announced our agreement to create a commercial vehicles group

with the reach, product portfolio and industrial capability to become an international powerhouse in this dynamic sector. Tata Motors intends to

make a voluntary tender offer to acquire all issued common shares of Iveco Group, after the separation of our Defence business. This

combination brings together two businesses with highly complementary product portfolios and capabilities, and with substantially no overlap in

their industrial and geographic footprints. It creates a stronger, more diversified entity with expected sales of over 540,000 units per year and

combined revenues of approximately 22 billion euros. Tata Motors is committed to supporting and accelerating our existing strategy and ensuring

the long-term interests of all our stakeholders, including employees, customers and suppliers.

Lastly, in October, Iveco Group and DLL – a global leader in vendor finance and a subsidiary of Rabobank – entered into a joint venture, with DLL

acquiring a majority interest in GATE, the pay-per-use rental solution for low- to zero-emission commercial vehicles founded by Iveco Group in

2023. The new JV structure provides GATE with strengthened financial backing and asset financing expertise, both crucial enablers for

accelerating its growth strategy.

SUSTAINABLE BUSINESS PRACTICES

While managing the ordinary course of our businesses and advancing these extraordinary transactions, our commitment to sustainability

remained intact – since it is ingrained in every aspect of our operations.

Our ambitious ESG targets span across four key areas: net zero carbon emissions, workplace and product safety, life cycle thinking, and inclusion

and engagement. Many of our 2026 targets were achieved already at the end of 2025, one year ahead of schedule: 100% of our total electricity

consumption was derived from renewable sources; 76.9% of our industrial water was recycled; our injury frequency rate went down 51% versus

2019; and we confirmed our EDGE certification for workplace gender equity.

In 2025, our sustainability performance and the transparency of our disclosures were validated by our inclusion in global sustainability indices.

Our high ratings from sector-specific agencies mirror our commitment to sustainability-led strategies that deliver a positive impact on the

environment and society. We ranked in the top 5% of the S&P Global Corporate Sustainability Assessment for our industry and achieved the

highest score of ‘A’ in climate change and ‘A-’ in water security in the 2025 CDP Assessment.

We also continued to support initiatives that improve lives within the communities where we operate. In 2025, we worked with non-governmental

organisations to deliver meaningful, measurable and lasting impact. These social responsibility efforts focused on three core areas: fostering

health and wellbeing; reducing inequality and protecting diversity and vulnerable groups; preserving biodiversity.

Letter from the Chair and the Chief Executive Officer 6

Equally relevant, our industrial business units kept incorporating sustainability into the design, manufacture and use of our products, earning

recognition throughout the year. Our Truck plant in Valladolid, Spain, won the Automotive Lean Production Award 2025 for ‘Digital Use Case

OEM: Smart Safety’. In Italy, the prestigious ‘Barsanti e Matteucci’ XXIV International Award went to IVECO for technological excellence in the

mobility sector. IVECO BUS earned two accolades: the Crossway Elec electric bus was named ‘Sustainable Bus of the Year 2026’ and the

Urbanway Hybrid bus was crowned ‘Top City Bus Slovakia Transport 2025’. FPT was confirmed Engine Manufacturer of Choice for premium

tractor brands, powering three ‘Tractor of the Year’ 2026 winners.

LOOKING AHEAD

While 2025 presented a series of challenges, the Iveco Group team showed resilience, adapting to market shifts and working on the two

extraordinary transactions announced in July 2025, in line with the original timelines we set out. We look ahead with confidence as we remain

focussed on quality, operational excellence and the ongoing acceleration of our Efficiency Programme. Across our business units, we are

committed to delivering long-term value for all our stakeholders.

As we progress on this journey, we thank you for your continued loyalty and support. It is a privilege to move forward together with you.

Yours sincerely,

Suzanne Heywood Olof Persson

Chair, Iveco GroupChief Executive Officer, Iveco Group

⁽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.

Board Report Introduction 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.

MERGER AGREEMENT WITH TATA MOTORS

On 30 July 2025, Iveco Group and Tata Motors Limited (“Tata Motors”), a global automotive leader, announced that they had reached an

agreement on an envisaged recommended voluntary tender offer (the "Offer") to create a commercial vehicles group with the reach, product

portfolio and industrial capability to be a global champion in this dynamic sector. The completion of the offer is conditional, inter alia, on the

separation of Iveco Group's Defence business and, as such, the public offer is for all issued common shares of Iveco Group after the separation

of that business, at a price of €14.1 (cum dividend, excluding any dividend distributed in relation to the sale of the Defence business) per share in

cash (the “Offer Price”). The Offer represents a total consideration of approximately €3.8 billion for Iveco Group, excluding Iveco Group's Defence

business and the net proceeds from the Defence business separation. The Iveco Group Board of Directors unanimously and fully supported the

Offer and recommended the Offer for acceptance by the shareholders of Iveco Group. Exor N.V., Iveco Group’s largest shareholder, has

irrevocably committed to support the Offer and tender its shareholding representing approximately 27.06% of Iveco Group's common shares and

43.11% of all voting rights. The Offer is subject to obtaining the required merger control, foreign direct investment, EU Foreign Subsidies

Regulation and financial regulatory clearances, and is expected to complete in the first half of 2026.

DISCONTINUED OPERATIONS - DEFENCE BUSINESS

On 30 July 2025, Iveco Group announced the signing of a definitive agreement to sell its Defence business (IDV and ASTRA brands) to Leonardo

S.p.A., for an enterprise value of €1.7 billion. The transaction is expected to be complete no later than 31 March 2026. The corporate carve out of

the Defence business was completed in 2025 and the required regulatory approval processes are in progress as expected. Furthermore, in the

context of the Merger Agreement with Tata Motors, for the event that completion of the sale of the Defence business to Leonardo S.p.A. does not

occur prior to or on 31 March 2026, Iveco Group N.V. announced it would have taken all actions necessary to complete its spin-off through a

statutory demerger, which would transfer the business into a company, newly incorporated under Dutch law. Therefore, an Extraordinary General

Meeting was convened to resolve on 25 March 2026 also upon the demerger, in accordance with the demerger proposal between the Company

and IDV Group N.V. dated 11 February 2026, to become effective on the day following the execution of the notarial deed of demerger. The Board

of Directors reserved the right to remove this item from the agenda of the Extraordinary General Meeting in case it becomes evident prior to the

Extraordinary General Meeting that the sale of the Defence business to Leonardo S.p.A. has been completed or will be completed.

In accordance with IFRS 5 – Non-current Assets Held for Sale and Discontinued Operations, as the sale became highly probable in July 2025, the

Defence 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 2024

comparative periods have been recast consistently.

DISCONTINUED OPERATIONS - FIRE FIGHTING BUSINESS

On 3 January 2025 Iveco Group completed the transfer of ownership of Magirus GmbH and its affiliates performing the Fire Fighting business.

Starting with the first quarter of 2024 and during the same year, according to IFRS 5, the Fire Fighting business was classified as a disposal group

held for sale and as Discontinued Operations.

Board Report Presentation of Financial and Certain Other Information 8

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 2025, Iveco Group reports its operations under four reportable segments: Truck, Bus, Powertrain, and Financial Services.

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

are collectively referred to as “Industrial Activities”.

Furthermore, Iveco Group still controls Defence Business classified 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.

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 2025 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 relevant initiatives and the

reporting of sustainability performance.

The Statement's contents are defined based on the results of the double materiality assessment and are intended 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 2025 financial year – which coincides with the

calendar year – for the whole of Iveco Group worldwide as consolidated in the 2025 Annual Report as at 31 December 2025. 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 sustainability matters 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' and 'n.a.' stands for 'not available'.

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 regarding 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.

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 following table, together with references to

the relevant Sustainability Statement sections where further details are provided.

Board Report Sustainability Statement 10


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 2025.

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 FPT Industrial and Marine engines production line and the FPT 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
Bolzano	Italy
Brescia Truck	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 reporting scope in 2025 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 2025, 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

the Group's Fire Fighting Business Unit, namely of Magirus GmbH and its affiliates under the Brand MAGIRUS. The transfer was completed on

3 January 2025.

Some figures for 2019 (the base year for some targets) and for 2024 were either restated (to reflect an adjustment or change in calculation

methodology) or recalculated and reported separately as recast data (to reflect the exclusion of Iveco Group's former Fire Fighting Business

Unit), to enable comparability with the 2025 reporting perimeter.

Significant restatement or recalculation of data or information from the previous reporting period is explicitly noted in either the Data Calculation

Methodology sections or in the accompanying tables.

The aforementioned changes were made in line with ESRS 1 paragraph 7.1 'Presenting comparative information' and paragraph 7.5 'Reporting

errors in prior periods'.

Other 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 Annual Report.

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 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 2025, no Board member had held a comparable position in public administration (including regulatory bodies) in the 2 years prior to their

appointment.

As at 31 December 2025, the Board was composed of 9 Directors, with 2 (22%) serving as Executive Directors (one with the title of Chairperson –

Suzanne Heywood – and one with the title of Chief Executive Officer – Olof Persson), and 7 (78%) as Non-Executive Directors. Of the total

Directors, 44% were male and 56% female, all were appointed for a term expiring on the day of the Company's Annual General Meeting in 2026,

and 5 met the DCGC's independence requirements. No Board member was under 30 years of age, with 1 member in the 30-50 age group and 8

members in the over-50 age group.

Iveco Group Board of Directors – Overview

As at 31 December 2025


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
Clara Fain	1985	F	FR	No	No	2025
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, 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.

⁽³⁾ Visit the Board of Directors section of the corporate website.

⁽⁴⁾ 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⁽³⁾; these

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

ongoing skills development, 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 (along with their definitions) are

summarised below.

Iveco Group Board of Directors – Skills Matrix

As at 31 December 2025


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
Clara Fain	Medium	Full	Full	Medium	Full	Medium	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⁽⁴⁾:

▪ 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.

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

⁽⁶⁾ The Charter of the ESG Committee is available on the corporate website.

⁽⁷⁾ ESG and sustainability aspects include climate-related and water security issues.

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

⁽⁹⁾ 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⁽⁵⁾: 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 in terms of 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 Annual 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 on

sustainability reporting and on 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⁽⁶⁾ 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 assessment), 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⁽⁷⁾ 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 assessment in preparation

for sustainability reporting.

In 2025, the ESG Committee met 4 times.

According to its Charter, the Audit Committee⁽⁸⁾, on the other hand, 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⁽⁹⁾ 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.

In 2025, the Audit Committee met 5 times.

Board Report Sustainability Statement 15

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

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

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 the Board 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.

As at 31 December 2025, the SLT had 13 members (excluding the CEO) and its composition was as follows:

▪ gender: 9 males (representing 69% of the total) and 4 females (representing 31% of the total)

▪ age group: 5 members were in the 30-50 age group (38%), 8 members were in the over-50 age group (62%), 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 Global Affairs & 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 assessment 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 corporate functions in carrying out sustainability actions

▪ strengthening relationships with stakeholders with regards to key sustainability matters

▪ 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.

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.

⁽¹⁰⁾For the definition of the Focus Area reporting scope, see 1.1 General Basis for the Preparation of the Sustainability Statement.

⁽¹¹⁾Committee of Sponsoring Organizations of the Treadway Commission.

Board Report Sustainability Statement 16

In 2025, 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 (measured as the percentage reduction in Scope 1

and Scope 2 CO2eq emissions within the Focus Area reporting scope⁽¹⁰⁾) compared to the 2019 base year. As a result, the 2023-2025 LTI PSU

awards are contingent, among other things, on a 22% reduction in CO2 emissions by 2025, the 2024-2026 LTI PSU awards are contingent on a

28% reduction by 2026, and the 2025-2027 LTI PSU awards are contingent on a 33% reduction by 2027. 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.

For more information on remuneration components, see the 'Remuneration Report' in this Annual 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 Organisation's strategy, business model,

activities, business relationships, and operating, sourcing, and selling contexts. The actions described in the sections referenced in the following

table 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 process	1.7 Stakeholder 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 7.14 Human and Labour Rights Management 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⁽¹¹⁾ on 31 March 2023, recognised as

the benchmark for effective ESG reporting control systems.

The aforementioned document provides guidance on applying the 5 components (Control Environment, Risk Assessment, Control Activities,

Information and Communication, Monitoring Activities) and the 17 principles of COSO's 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 to design and implement its

own integrated and comprehensive internal control system.

To map the relevant processes and controls, Iveco Group 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.

In 2025, Iveco Group advanced this work as part of a multi-year project to continuously enhance its internal control system over sustainability

reporting (ICSR), supported by the growing awareness and active involvement of the business functions that contribute to sustainability reporting.

The year's project activities focused mainly on the process mapping and control design assessment related to an additional sub-set of relevant

KPIs based on the results of the Scoping phase.

⁽¹²⁾ Corporate Sustainability Assessment by S&P Global.

⁽¹³⁾ The KPI development process encompasses data generation, aggregation, KPI calculation, and validation.

⁽¹⁴⁾ The KPI development process encompasses data generation, aggregation, KPI calculation, and validation.

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

Board Report Sustainability Statement 17

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 Department 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, and based

on the results 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, requirements of rating agencies and of the S&P CSA⁽¹²⁾, 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). In 2025, the second year of implementation, the scoping perimeter remained focused on quantitative

data, with plans to address qualitative data points in the final implementation stage, after 2027.

▪ 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. 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⁽¹³⁾, 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 Department. 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⁽¹⁴⁾. 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, determined in the

Scoping phase, PLCs may focus on the full end-to-end KPI development process⁽¹⁵⁾ or on its 'closing' activities (i.e., the final stage of the

development process related to data aggregation and KPI calculation).

Following the process mapping and control design assessment activities carried out during the Process and Control Documentation phase for the

first subset of relevant KPIs – focused on the environmental and social dimensions and analysed during the first implementation stage (2024) –

improvement areas were identified to strengthen the control structure. Management defined specific action plans to address these areas and

further enhance the effectiveness of the internal control system. During the second year of implementation (2025), this cycle was repeated for a

further subset of the most relevant KPIs, covering the environmental, social, and governance dimensions, in line with the implementation

roadmap.

▪ Monitoring: this phase involves assessing ELCs, PLCs, 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 (ICFR)

model. The controls mapped during the Process and Control Documentation phase are tested according to a risk-based prioritisation plan. In

2025, these activities focused on testing the operating effectiveness of the controls identified in the first year of implementation, taking into

account the progress made in implementing the corresponding action plans.

▪ 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.

Board Report Sustainability Statement 18

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

periodically updated on the progress of its implementation.

The ICSR implementation roadmap, originally planned in 3 stages over the 2024–2026 period, has been expanded to 4. As a result, completion of

the process mapping, control design, and effectiveness assessment activities related to quantitative data points is now expected in 2027, followed

by a further implementation stage which will focus on the analysis of qualitative data points and the design of ITGCs to ensure the proper

functioning of the IT systems supporting the PLCs.

Board Report Sustainability Statement 19

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 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 manufacturing, commercial, and financial services companies in

33 countries and a commercial presence in 155 countries.

As at 31 December 2025, Iveco Group had the following operating business units:

▪ 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;

▪ 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 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.

Furthermore, at 31 December 2025, Iveco Group still controls Defence business which 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. Defence business is classified as Discontinued Operations in this Annual Report , as described in the section "Result of Operations".

With regard to the workforce, 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 within the Organisation.

Employees by Region

(number)


	2025	2024
Europe	30,360	30,968
South America	4,062	4,010
North America	75	77
Rest of World	956	991
Total	35,453	36,046

For financial information on revenues, see the 'Operating and Financial Review' section in this Annual Report; the business unit 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

Board Report Sustainability Statement 20

▪ 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 Organisation 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

▪ 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 its 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

⁽¹⁶⁾ Carbon footprint; life cycle thinking; workplace and product safety; inclusion and engagement.

Board Report Sustainability Statement 21

▪ 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

▪ 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⁽¹⁶⁾ 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.

The Sustainability Plan


ESRS	Targets	2025 Results		Achievement at 31 December 2025
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)	■	-29.6% 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)	■	100% of total electricity consumption derived from renewable sources	Target exceeded
E1	2030: -30% vs 2019 in energy consumption per production unit (a) at manufacturing plants (Focus Area)	■	-22.9% 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	■	-9.1% 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	■	-6% 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)	■	-32.8% vs 2019 in VOC emissions per square metre painted	Target exceeded
E3	2026: 75% of industrial water recycled at manufacturing plants (Focus Area)	■	76.9% of industrial water recycled	Target exceeded
E3	2026: -15% vs 2019 in water withdrawal per production unit(a) at manufacturing plants (Focus Area)	■	-17.3% vs 2019 in water withdrawal per production unit ^(a)	Target exceeded

Board Report Sustainability Statement 22


ESRS	Targets	2025 Results		Achievement at 31 December 2025
E3	2026: -10% vs 2019 in water withdrawal per production unit ^(a) at the plant in Brescia (Italy)	■	-10.9% vs 2019 in water withdrawal per production unit ^(a) achieved at the 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)	■	+18.7% vs 2019 in water withdrawal per production unit ^(a) achieved at the Powertrain plant in Foggia (Italy)	Target in line with plan
E3	2026: -22% vs 2019 in water withdrawal per production unit ^(a) at the plant in Madrid (Spain)	■	-58.3% 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)	■	+4.6% vs 2019 in water withdrawal per production unit ^(a) achieved at the plant in Valladolid (Spain)	Target in line with plan
E5	2026: 100% of new products developed using sustainability/recyclability design criteria	■	New design criteria applied to a heavy-duty vehicle (Model Year 2028) and new gen bus projects	Target in line with plan
E5	2026: 97.1% of waste recovered at manufacturing plants (Focus Area)	■	97% of waste recovered	Target in line with plan
E5	2026: -7% vs 2019 in waste generated per production unit (a) at manufacturing plants (Focus Area)	■	-21.7% 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)	■	-31.8% vs 2019 in hazardous waste generated per production unit ^(a)	Target exceeded
S1	2026: -40% vs 2019 in injury frequency rate	■	-51% 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 maintained	Target in line with plan
S1	2028: 30% of office positions held by female office workers	■	28.1% of office positions held by female workers	Target in line with plan
S1	2027: completion of human rights assessments cycle (2025-2027 period), to monitor 100% of employees working in internal operations	■	First phase of the 3-year human rights assessment cycle completed, covering to date more than 70% of employees working in internal operations	Target in line with plan
S2	2026: collaborations with 100% of key partners to improve the working conditions and work-life balance of drivers	■	100% of key partners involved in initiatives to improve the working conditions and work-life balance of drivers	Target exceeded
S2	2026: 100% of dealership staff involved in safety training on Iveco Group's electric product portfolio	■	96.1% of dealership staff involved in safety training on the Group's electric product portfolio	Target in line with plan
S2 G1	2025: execution of 80 supplier sustainability audits	■	80 supplier sustainability audits carried out	Target in line with plan
S2 G1	2026: execution of 80 supplier sustainability audits			New target
S2 G1	2026: 100%^(c) of Tier 1 suppliers to be involved in sustainability assessment	■	92% 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	■	+53% vs 2019 in number of students involved in education activities	Target exceeded
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 new functions and technologies to expand the portfolio of advanced solutions	Target in line with plan
S4	2026: +25% vs 2021 in Net Promoter Score (NPS) for IVECO Trucks	■	+6.5% 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	■	+100% vs 2021 in number of collaboration projects with suppliers to improve products' sustainability performance	Target exceeded
—	2030: 100% recovery of the cores of spare parts sold^(d)	■	74.7% 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	■	9% 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) The target refers to vehicles manufactured in Europe.

^(c)Target progress is calculated as a percentage of Iveco Group's annual purchase value (APV) relating to Tier 1 suppliers for each of which the Group's annual spend exceeds

€500,000.

^(d)Target scope limited to complete engines, excluding smaller components.

Board Report Sustainability Statement 23

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.


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, Communications
▪ Financial Community (Shareholders, traditional and ESG Investors)	Finance, Global Affairs & Sustainability, Communications
▪ Public Institutions ^(a)	Global Affairs & Sustainability
▪ Scientific and Technological Research Centres and Universities	Business Units, Technology & Digital, Human Resources
▪ Local Communities^(b)	Global Affairs & Sustainability, Legal, Compliance & Corporate Governance, Manufacturing
▪ Environment	Manufacturing, Global Affairs & Sustainability, Business Units, Technology & Digital
▪ Next Generations	All Corporate functions

^(a) Governments, local authorities, public-sector 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 2025, Iveco Group continued to strengthen its engagement with stakeholders through a wide range of initiatives aimed at promoting dialogue

and transparency.

For employees, key activities included Sustainability Day, which provided an opportunity to present the Group's sustainability projects and

progress on the four sustainability priorities through contributions from colleagues from around the world. Additional initiatives included

Volunteering Days, enabling employees to deliver social impact in local communities, and the continuation of the Voice programme, further

reinforcing a culture of participation and accountability. Meanwhile, more than 140 hourly employees, selected as a representative sample, took

part in focus groups conducted at various plants to evaluate the quality and effectiveness of internal communication projects, processes, and

tools, and to identify opportunities for improvement.

⁽¹⁷⁾The Stakeholder Dialogue Policy on Sustainable Strategy is available on the corporate website.

⁽¹⁸⁾Iveco Group was established on 1 January 2022, following the execution of the deed of demerger from CNH Industrial.

Board Report Sustainability Statement 24

Engagement with international organisations and public institutions remained a key priority. In this context, the Group continued its involvement in

the UN Global Compact, contributing to discussions on the digital transition and supporting efforts to advance responsible sourcing practices

across the supply chain.

Dialogue with customers and suppliers was further strengthened through dedicated initiatives, most notably the 50xBeyond event in Turin (Italy)

and other celebrations held worldwide for IVECO Brand's 50^th anniversary. These events featured a series of meetings with key clients and supply

chain partners, providing an important platform for exchanging perspectives on innovation, energy efficiency, sustainability performance, and

long-term business expectations, and for supporting alignment around shared objectives.

Several cross-sector priorities emerged across all stakeholder groups. Human rights due diligence was a central theme, particularly for customers

and suppliers, reflecting increasing expectations for transparency and responsible business conduct throughout the value chain. Climate-related

matters also remained critical, with regulators and the financial community continuing to focus on the Group's CO₂ reduction pathway, seeking

clarity on its long-term decarbonisation strategy, technological investments, and alignment with evolving regulatory frameworks.

Overall, stakeholder feedback in 2025 reaffirmed the crucial importance of climate change mitigation, responsible supply chain management, and

the protection of human rights. These issues remain at the core of the Group's sustainability strategy, driving the transition to low-carbon

transport, strengthening partnerships with stakeholders, and generating positive environmental and social value for the communities in which the

Organisation operates.

Iveco Group has adopted a Stakeholder Dialogue Policy on Sustainable Strategy⁽¹⁷⁾ 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 its materiality assessment. This involves 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 assessments since 2013, initially as part of the former Group⁽¹⁸⁾

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 it includes 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 CO2 emissions from manufacturing processes, the product range, and along the entire value chain (supply and

logistics), aiming for net zero carbon emissions by 2040

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

▪ 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

▪ 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 2025 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. Furthermore, impacts related to

Product quality and safety and Dealer and customer management remain material to the Organisation. It should be noted that, compared to 2024,

a new impact related to the sustainability matter Working conditions and human rights of own workforce emerged as material – specifically the

potential impact on employee privacy in the event of data leakage. At year-end 2025, 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.

⁽¹⁹⁾ IG1: Materiality Assessment Implementation Guidance.

⁽²⁰⁾ See ESRS 1, Appendix A.

⁽²¹⁾ Exploring Natural Capital Opportunities, Risks, and Exposure.

Board Report Sustainability Statement 25

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

In 2025, 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⁽¹⁹⁾ guidelines. This assessment has 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 duly considered those

arising from external impacts and dependencies. The process of identifying the Group's material impacts, risks, and opportunities for the 2025

reporting period is described below.

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

A preliminary mapping was performed of the Group's activities and value chain, to identify and define 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⁽²⁰⁾,

alongside an analysis of the Strategic Business Plan, Sustainability Plan targets, industry sustainability matters, 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⁽²¹⁾ 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 the ESRS 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 public

institutions – consulted via ad hoc interviews or online forms 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 assessment were also used to shape the contents of this Sustainability Statement.

The double materiality assessment is an ongoing process that may be impacted in time by developments in stakeholder expectations, regulatory

developments, changes in risk management or new business developments.

Board Report Sustainability Statement 26

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 (Scope 1 & 2) generated by Iveco Group's own operations contribute to climate change	Negative	Actual	Short-term	Own operations	1. Risk: Difficulties in optimising the mix of renewable and alternative energy sources in the regions where the Group operates could lead to higher energy costs	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: Market dynamics may be affected by the shift towards electric vehicles (EV) and the decline in internal combustion engines (ICEs), causing uncertainty over adoption due to regulatory misalignment, incentives, and infrastructure gaps. Failure to comply with emissions regulations may lead to penalties and reputational damage 2. Opportunity: Electrification, which requires expanded offerings and new business models to meet demand, could drive market consolidation. The success of new products/services aligned with evolving customer behaviour may generate financial benefits from the growing demand for high-margin EV products and streamlined offerings 3. Opportunity: A regulatory shift supporting the adoption of carbon-neutral fuels through a well- to-wheel approach may extend the viability of internal combustion engines	1. Short-, medium-, and long- term 2. Medium- and long- term 3. Short-, medium- 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	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	Negative	Actual	Short-term	Own operations	1. Risk: Failure to comply with relevant regulations on air pollutants (e.g., NOX )	1. Short- term
Pollution	Air pollutants from the use phase of vehicles – including NOX and PM – represent a threat to human health and the environment	Negative	Actual	Short-term	Downstream value chain		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	—
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: Increasingly stringent environmental requirements may shorten product life cycles, affecting 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

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
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 could lead to legal and regulatory consequences and/or reputational damage 2. Risk: Growing investment in health and safety may be needed to ensure legal compliance and to protect people and assets from climate-related events 3. Risk: Health emergencies may disrupt supply chains, workforce availability, and business operations, posing a risk to business continuity	1. Short-, medium-, and long- term 2. Medium- and long- term 3. Short-, 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) jeopardises employee access to basic life necessities and freedoms (e.g., education, livelihood)	Negative	Potential	Short-term	Own operations
	The leakage of personal, confidential and/or sensitive information compromises employee privacy	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	1. Risk: Keeping pace with new technical skills required for the transition to low-carbon vehicles may prove difficult while managing the workforce during this transition	1. Long- term
	The offering of appropriate welfare and wellbeing programmes contributes to employee work-life balance and satisfaction	Positive	Actual	Short-term	Own operations
	Discrimination and harassment in the workplace, including unfair recruiting 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 fulfil their professional potential	Positive	Actual	Short-term	Own operations

Board Report Sustainability Statement 28


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	Non-compliance with product health, safety, and quality requirements impacts 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	1. Risk: Challenges in evolving the business into a provider of transport solutions could affect the ability to meet customer demands	1. Long- term
Digitalisation and connectivity	The digitalisation and connectivity of Iveco Group's products contribute to enhancing the customer experience, improving satisfaction and safety on the road	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 may result in legal, financial, or reputational consequences	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 29

Board Report Sustainability Statement 30

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


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 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

Board Report Sustainability Statement 31


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


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

Board Report Sustainability Statement 32


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


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

Board Report Sustainability Statement 33

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	Sustainability Statement section
ESRS 2 GOV-1 Board's gender diversity paragraph 21 (d)	Indicator number 13 Table #1 of Annex 1		Commission Delegated Regulation (EU) 2020/1816⁽⁵⁾, Annex II		1.2
ESRS 2 GOV-1 Percentage of board members who are independent paragraph 21 (e)			Delegated Regulation (EU) 2020/1816, Annex II		1.2
ESRS 2 GOV-4 Statement on due diligence paragraph 30	Indicator number 10 Table #3 of Annex 1				1.4
ESRS 2 SBM-1 Involvement in activities related to fossil fuel activities paragraph 40 (d) i	Indicator number 4 Table #1 of Annex 1	Article 449a Regulation (EU) No 575/2013; Commission Implementing Regulation (EU) 2022/2453⁽⁶⁾ Table 1: Qualitative information on Environmental risk and Table 2: Qualitative information on Social risk	Delegated Regulation (EU) 2020/1816, Annex II		n/a
ESRS 2 SBM-1 Involvement in activities related to chemical production paragraph 40 (d) ii	Indicator number 9 Table #2 of Annex 1		Delegated Regulation (EU) 2020/1816, Annex II		n/a
ESRS 2 SBM-1 Involvement in activities related to controversial weapons paragraph 40 (d) iii	Indicator number 14 Table #1 of Annex 1		Delegated Regulation (EU) 2020/1818⁽⁷⁾, Article 12(1) Delegated Regulation (EU) 2020/1816, Annex II		n/a
ESRS 2 SBM-1 Involvement in activities related to cultivation and production of tobacco paragraph 40 (d) iv			Delegated Regulation (EU) 2020/1818, Article 12(1) Delegated Regulation (EU) 2020/1816, Annex II		n/a
ESRS E1-1 Transition plan to reach climate neutrality by 2050 paragraph 14				Regulation (EU) 2021/1119, Article 2(1)	3.1
ESRS E1-1 Undertakings excluded from Paris-aligned Benchmarks paragraph 16 (g)		Article 449a Regulation (EU) No 575/2013; Commission Implementing Regulation (EU) 2022/2453 Template 1: Banking book-Climate Change transition risk: Credit quality of exposures by sector, emissions and residual maturity	Delegated Regulation (EU) 2020/1818, Article12.1 (d) to (g), and Article 12.2		n/a
ESRS E1-4 GHG emission reduction targets paragraph 34	Indicator number 4 Table #2 of Annex 1	Article 449a Regulation (EU) No 575/2013; Commission Implementing Regulation (EU) 2022/2453 Template 3: Banking book – Climate Change transition risk: alignment metrics	Delegated Regulation (EU) 2020/1818, Article 6		3.4

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	Sustainability Statement section
ESRS E1-5 Energy consumption from fossil sources disaggregated by sources (only high climate impact sectors) paragraph 38	Indicator number 5 Table #1 and Indicator number 5 Table #2 of Annex 1				3.5.1
ESRS E1-5 Energy consumption and mix paragraph 37	Indicator number 5 Table #1 of Annex 1				3.5.1
ESRS E1-5 Energy intensity associated with activities in high climate impact sectors paragraphs 40 to 43	Indicator number 6 Table #1 of Annex 1				3.5.1
ESRS E1-6 Gross Scope 1, 2, 3 and Total GHG emissions paragraph 44	Indicators number 1 and 2 Table #1 of Annex 1	Article 449a; Regulation (EU) No 575/2013; Commission Implementing Regulation (EU) 2022/2453 Template 1: Banking book – Climate change transition risk: Credit quality of exposures by sector, emissions and residual maturity	Delegated Regulation (EU) 2020/1818, Articles 5(1), 6 and 8(1)		3.5.2
ESRS E1-6 Gross GHG emissions intensity paragraphs 53 to 55	Indicator number 3 Table #1 of Annex 1	Article 449a Regulation (EU) No 575/2013; Commission Implementing Regulation (EU) 2022/2453 Template 3: Banking book – Climate change transition risk: alignment metrics	Delegated Regulation (EU) 2020/1818, Article 8(1)		3.5.2
ESRS E1-7 GHG removals and carbon credits paragraph 56				Regulation (EU) 2021/1119, Article 2(1)	3.5.3
ESRS E1-9 Exposure of the benchmark portfolio to climate related physical risks paragraph 66			Delegated Regulation (EU) 2020/1818, Annex II Delegated Regulation (EU) 2020/1816, Annex II		n/a
ESRS E1-9 Disaggregation of monetary amounts by acute and chronic physical risk paragraph 66 (a) ESRS E1-9 Location of significant assets at material physical risk paragraph 66 (c).		Article 449a Regulation (EU) No 575/2013; Commission Implementing Regulation (EU) 2022/2453 paragraphs 46 and 47; Template 5: Banking book - Climate change physical risk: Exposures subject to physical risk			n/a
ESRS E1-9 Breakdown of the carrying value of its real estate assets by energy- efficiency classes paragraph 67 (c)		Article 449a Regulation (EU) No 575/2013; Commission Implementing Regulation (EU) 2022/2453 paragraph 34;Template 2:Banking book - Climate change transition risk: Loans collateralised by immovable property - Energy efficiency of the collateral			n/a

Board Report Sustainability Statement 35


Disclosure requirement and related data point	SFDR⁽¹⁾ reference	Pillar 3⁽²⁾ reference	Benchmark Regulation ⁽³⁾ reference	EU Climate Law⁽⁴⁾ reference	Sustainability Statement section
ESRS E1-9 Degree of exposure of the portfolio to climate-related opportunities paragraph 69			Delegated Regulation (EU) 2020/1818, Annex II		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	Indicator number 8 Table #1 of Annex 1 Indicator number 1 Table #2 of Annex 1 Indicator number 2 Table #2 of Annex 1 Indicator number 3 Table #2 of Annex 1				4.5.1
ESRS E3-1 Water and marine resources paragraph 9	Indicator number 7 Table #2 of Annex 1				5.2.1
ESRS E3-1 Dedicated policy paragraph 13	Indicator number 8 Table #2 of Annex 1				5.2.1
ESRS E3-1 Sustainable oceans and seas paragraph 14	Indicator number 12 Table #2 of Annex 1				n/a
ESRS E3-4 Total water recycled and reused paragraph 28 (c)	Indicator number 6.2 Table #2 of Annex 1				5.5
ESRS E3-4 Total water consumption in m ³ per net revenue on own operations paragraph 29	Indicator number 6.1 Table #2 of Annex 1				5.5
ESRS 2- SBM 3 - E4 paragraph 16 (a) i	Indicator number 7 Table #1 of Annex 1				n/a
ESRS 2- SBM 3 - E4 paragraph 16 (b)	Indicator number 10 Table #2 of Annex 1				n/a
ESRS 2- SBM 3 - E4 paragraph 16 (c)	Indicator number 14 Table #2 of Annex 1				n/a
ESRS E4-2 Sustainable land / agriculture practices or policies paragraph 24 (b)	Indicator number 11 Table #2 of Annex 1				n/a
ESRS E4-2 Sustainable oceans / seas practices or policies paragraph 24 (c)	Indicator number 12 Table #2 of Annex 1				n/a
ESRS E4-2 Policies to address deforestation paragraph 24 (d)	Indicator number 15 Table #2 of Annex 1				n/a
ESRS E5-5 Non-recycled waste paragraph 37 (d)	Indicator number 13 Table #2 of Annex 1				6.4.1
ESRS E5-5 Hazardous waste and radioactive waste paragraph 39	Indicator number 9 Table #1 of Annex 1				6.4.1
ESRS 2- SBM3 - S1 Risk of incidents of forced labour paragraph 14 (f)	Indicator number 13 Table #3 of Annex I				7.1
ESRS 2- SBM3 - S1 Risk of incidents of child labour paragraph 14 (g)	Indicator number 12 Table #3 of Annex I				7.1
ESRS S1-1 Human rights policy commitments paragraph 20	Indicator number 9 Table #3 and Indicator number 11 Table #1 of Annex I				7.2.1

Board Report Sustainability Statement 36


Disclosure requirement and related data point	SFDR⁽¹⁾ reference	Pillar 3⁽²⁾ reference	Benchmark Regulation ⁽³⁾ reference	EU Climate Law⁽⁴⁾ reference	Sustainability Statement section
ESRS S1-1 Due diligence policies on issues addressed by the fundamental International Labour Organization Conventions 1 to 8, paragraph 21			Delegated Regulation (EU) 2020/1816, Annex II		7.2.1
ESRS S1-1 Processes and measures for preventing trafficking in human beings paragraph 22	Indicator number 11 Table #3 of Annex I				7.2.1
ESRS S1-1 Workplace accident prevention policy or management system paragraph 23	Indicator number 1 Table #3 of Annex I				7.2.2
ESRS S1-3 Grievance/complaints handling mechanisms paragraph 32 (c)	Indicator number 5 Table #3 of Annex I				7.3
ESRS S1-14 Number of fatalities and number and rate of work-related accidents paragraph 88 (b) and (c)	Indicator number 2 Table #3 of Annex I		Delegated Regulation (EU) 2020/1816, Annex II		7.10.4
ESRS S1-14 Number of days lost to injuries, accidents, fatalities or illness paragraph 88 (e)	Indicator number 3 Table #3 of Annex I				7.10.4
ESRS S1-16 Unadjusted gender pay gap paragraph 97 (a)	Indicator number 12 Table #1 of Annex I		Delegated Regulation (EU) 2020/1816, Annex II		7.9.1
ESRS S1-16 Excessive CEO pay ratio paragraph 97 (b)	Indicator number 8 Table #3 of Annex I				7.9.1
ESRS S1-17 Incidents of discrimination paragraph 103 (a)	Indicator number 7 Table #3 of Annex I				7.14.2
ESRS S1-17 Non-respect of UNGPs on Business and Human Rights and OECD paragraph 104 (a)	Indicator number 10 Table #1 and Indicator number 14 Table #3 of Annex I		Delegated Regulation (EU) 2020/1816, Annex II Delegated Regulation (EU) 2020/1818 Article 12 (1)		7.14.1
ESRS 2- SBM3 – S2 Significant risk of child labour or forced labour in the value chain paragraph 11 (b)	Indicators number 12 and n. 13 Table #3 of Annex I				8.1
ESRS S2-1 Human rights policy commitments paragraph 17	Indicator number 9 Table #3 and Indicator n. 11 Table #1 of Annex 1				8.2
ESRS S2-1 Policies related to value chain workers paragraph 18	Indicator number 11 and n. 4 Table #3 of Annex 1				8.2
ESRS S2-1 Non-respect of UNGPs on Business and Human Rights principles and OECD guidelines paragraph 19	Indicator number 10 Table #1 of Annex 1		Delegated Regulation (EU) 2020/1816, Annex II Delegated Regulation (EU) 2020/1818, Art 12 (1)		8.2
ESRS S2-1 Due diligence policies on issues addressed by the fundamental International Labour Organization Conventions 1 to 8, paragraph 19			Delegated Regulation (EU) 2020/1816, Annex II		8.2
ESRS S2-4 Human rights issues and incidents connected to its upstream and downstream value chain paragraph 36	Indicator number 14 Table #3 of Annex 1				8.5
ESRS S3-1 Human rights policy commitments paragraph 16	Indicator number 9 Table #3 of Annex 1 Indicator number 11 Table #1 of Annex 1				9.2
ESRS S3-1 Non-respect of UNGPs on Business and Human Rights, ILO principles or/and OECD guidelines paragraph 17	Indicator number 10 Table #1 Annex 1		Delegated Regulation (EU) 2020/1816, Annex II Delegated Regulation (EU) 2020/1818, Article 12 (1)		9.2

Board Report Sustainability Statement 37


Disclosure requirement and related data point	SFDR⁽¹⁾ reference	Pillar 3⁽²⁾ reference	Benchmark Regulation ⁽³⁾ reference	EU Climate Law⁽⁴⁾ reference	Sustainability Statement section
ESRS S3-4 Human rights issues and incidents paragraph 36	Indicator number 14 Table #3 of Annex 1				9.4
ESRS S4-1 Policies related to consumers and end-users paragraph 16	Indicator number 9 Table #3 and Indicator number 11 Table #1 of Annex 1				10.2
ESRS S4-1 Non-respect of UNGPs on Business and Human Rights and OECD guidelines paragraph 17	Indicator number 10 Table #1 of Annex 1		Delegated Regulation (EU) 2020/1816, Annex II Delegated Regulation (EU) 2020/1818, Article 12 (1)		n/a
ESRS S4-4 Human rights issues and incidents paragraph 35	Indicator number 14 Table #3 of Annex 1				n/a
ESRS G1-1 United Nations Convention against Corruption paragraph 10 (b)	Indicator number 15 Table #3 of Annex 1				11.2
ESRS G1-1 Protection of whistle-blowers paragraph 10 (d)	Indicator number 6 Table #3 of Annex 1				11.2.4
ESRS G1-4 Fines for violation of anti-corruption and anti-bribery laws paragraph 24 (a)	Indicator number 17 Table #3 of Annex 1		Delegated Regulation (EU) 2020/1816, Annex II		11.5
ESRS G1-4 Standards of anti-corruption and anti-bribery paragraph 24 (b)	Indicator number 16 Table #3 of Annex 1				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).

⁽²²⁾ Delegated Regulation 2021/2139.

⁽²³⁾ Delegated Regulation 2023/2486.

⁽²⁴⁾Delegated Regulation 2022/1214, introducing economic activities specific to the energy sector, including nuclear and gas energy.

⁽²⁵⁾ Formally approved and published in the Official Journal of the European Union (OJEU) on 8 January 2025.

⁽²⁶⁾Commission Delegated Regulations (EU) 2021/2178, (EU) 2021/2139, and (EU) 2023/2486.

Board Report Sustainability Statement 38

2. EU TAXONOMY ON SUSTAINABLE ACTIVITIES

In June 2020, the European Commission adopted Regulation (EU) 2020/852 (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 considered 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 adopted the Climate Delegated Act⁽²²⁾, which establishes the Technical Screening Criteria (TSC) for

determining the conditions under which specific economic activities qualify as taxonomy-aligned, i.e., as contributing substantially to the climate

change mitigation and climate change adaptation objectives, while ensuring that such activities do not cause significant harm (DNSH) to any of

the other environmental objectives.

In 2023, the European Commission further expanded the Taxonomy framework with the adoption of:

▪ 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 (CCM

and CCA)

▪ the Environmental Delegated Act⁽²³⁾ (November 2023), which defines, in Annexes I, II, III and IV, the economic activities associated with the

remaining 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.

In accordance with the EU Taxonomy Regulation, an economic activity⁽²⁴⁾ is considered taxonomy-eligible if it is listed in one or more of the

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.

A taxonomy-eligible activity can also be considered taxonomy-aligned if the following conditions are met:

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

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 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 quantitative information on the proportion of: (i) turnover

derived from products and services, (ii) capital expenditure (CapEx) and (iii) operating expenditure (OpEx) related to assets and processes that

are associated with economic activities that qualify as environmentally sustainable under Articles 3 and 9.

For the reporting period of reference (Financial Year 2025), the Group elected to apply the simplifications introduced by the Commission

Delegated Regulation (EU) 2026/73 of 4 July 2025⁽²⁵⁾ (the 'revised EU Taxonomy Delegated Act') , which amends the previously adopted

Delegated Regulations⁽²⁶⁾.

Board Report Sustainability Statement 39

2.1 ELIGIBILITY ASSESSMENT OF IVECO GROUP'S ECONOMIC ACTIVITIES

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

aforementioned Delegated Regulations adopted under the EU Taxonomy Regulation. As a result of this assessment, the Group identified the

following eligible revenue-generating activities: 3.3 Manufacture of low carbon technologies for transport; 3.18 Manufacture of automotive and

mobility components; 5.4 Sale of second-hand goods; 6.3 Urban and suburban transport, road passenger transport; 6.5 Transport by motorbikes,

passenger cars, and light commercial vehicles; and 6.6 Freight transport services by road.

In accordance with Commission Delegated Regulation (EU) 2026/73, the Group elected to apply the materiality option provided therein. Under

this approach, taxonomy-eligible activities that cumulatively account for less than 10% of the KPIs (Turnover, CapEx and OpEx) may be excluded

from further analysis. Accordingly, although formally eligible under the EU Taxonomy, activities 5.4, 6.3, 6.5, and 6.6 – cumulatively accounting for

less than 10% of the Group's Turnover, CapEx and OpEx – were therefore excluded from the scope of the analysis. These activities are

considered non material as they represent a marginal share of the Group's overall economic performance and investment and are not

representative of the Group's core business model, which focuses primarily on the manufacturing of vehicles and powertrain technologies. In

particular, these activities mainly relate to ancillary services, including the leasing of trucks and buses and the sale of pre-owned vehicles, and do

not materially contribute to the Group's strategic objectives under the EU Taxonomy framework.

As a result, the taxonomy-eligible activities considered material for the purposes of the analysis are the following:

▪ 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

▪ 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 intended exclusively for vehicles and buses falling within categories M1, N1, N2, and N3,

with a specific focus on ePowertrain components.

Furthermore, Iveco Group identified 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. These activities include: 1.2 Manufacture of electrical and electronic equipment; 6.5

Transport by motorbikes, passenger cars, and light commercial vehicles; 7.3 Installation, maintenance, and repair of energy efficiency equipment;

7.4 Installation, maintenance, and repair of charging stations for electric vehicles in buildings (and parking spaces attached to buildings); 7.5

Installation, maintenance, and repair of instruments and devices for measuring, regulation, and controlling energy performance of buildings; 7.6

Installation, maintenance, and repair of renewable energy technologies; and 7.7 Acquisition and ownership of buildings.

Consistent with the approach outlined above, and with the application of the materiality option introduced by Commission Delegated Regulation

(EU) 2026/73, these activities, cumulatively accounting for less than 10% of the relevant CapEx and OpEx KPIs, were therefore not reported in

the EU Taxonomy KPIs.

The Group assessed the contribution of the identified taxonomy-eligible economic activities to each of the 6 environmental objectives set out in

the EU Taxonomy Regulation. The analysis indicated that the climate change mitigation (CCM) objective is the most consistent with the Group's

business model and operational activities.

⁽²⁷⁾ World Resources Institute.

Board Report Sustainability Statement 40

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 and considered material for the analysis 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 ascertain whether the identified 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 N1, N2, and N3 (over 7.5 tons) align with the zero- or low-emission specifications

set by European regulations. As part of this assessment, Iveco Group deemed 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.

▪ 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.

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), those deemed material for the reporting period were

further analysed for compliance with the Do No Significant Harm (DNSH) criteria. Each DNSH technical criterion 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 Manufacture of low carbon technologies for transport and 3.18

Manufacture of automotive and mobility components were deemed aligned with the DNSH criteria.

Objective: Climate Change Adaptation (CCA)

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.

Objective: Sustainable Use and Protection of Water and Marine Resources (WTR)

For the activities relevant to this objective, the criteria 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⁽²⁷⁾ Aqueduct Water Risk Atlas was used to identify Group plants in water-stressed areas. As the assessment was

conducted on the Group's main manufacturing sites, the criteria have been fulfilled. Meanwhile, the Group provides evidence of its water use by

submitting a CDP Water questionnaire each year. In the last reporting year it obtained a score of A-.

Objective: Transition to a Circular Economy (CE)

To meet the DNSH criteria for this objective, activities 3.3 Manufacture of low carbon technologies for transport and 3.18 Manufacture of

automotive and mobility components 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 41

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

spare parts sales to be generated by 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. Finally, all Group plants are ISO 14001 certified, attesting to the

proper management of material disposal, reuse and, recycling.

Objective: Pollution Prevention and Control (PPC)

The activities relevant to this objective – 3.3 Manufacture of low carbon technologies for transport and 3.18 Manufacture of automotive and

mobility components – are subject to stringent substance and emission regulations that require the prevention of restricted substances in

accordance with Appendix C to Annex I of Delegated Regulation (EU) 2021/2139, as amended by Commission Delegated Regulation (EU)

2026/73.

Compliance with other applicable regulations, including 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 the aforementioned Appendix C. As regards the latter's point (f), based on the

Organisation's current understanding of the regulatory framework, it considers the authorisation process managed as per REACH or other sector-

specific regulations (e.g., valid exemptions or derogations under RoHS and POPs) sufficient to achieve compliance.

Objective: Protection and Restoration of Biodiversity and Ecosystems (BIO)

To evaluate the impact of activities 3.3 Manufacture of low carbon technologies for transport and 3.18 Manufacture of automotive and mobility

components 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.

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.

⁽²⁸⁾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).

⁽²⁹⁾2023/C 211/01 Communication, FAQ 2.

Board Report Sustainability Statement 42

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 issues such as, but not limited to, 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.

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 11. Business Conduct.

In addition, the Group aligns with the 'do no significant harm' principle of the SFRD⁽²⁸⁾, under Article 2(17)⁽²⁹⁾, by addressing the gender pay gap

and gender diversity within governance bodies and by reporting on the respective indicators in the Annual Report.

⁽³⁰⁾ Commission Delegated Regulation (EU) 2026/73.

Board Report Sustainability Statement 43

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 taxonomy-

eligible and taxonomy-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.

The Group's EU Taxonomy reporting tables were updated in 2025 following the adoption of Commission Delegated Regulation (EU) 2026/73 (the

'revised EU Taxonomy Delegated Act'⁽³⁰⁾) . In accordance with Article 8(3) of the Disclosure Delegated Act, comparative information (covering the

2024 Financial Year) has been disclosed in the tables at the end of the following 'EU Taxonomy-related KPIs and Contextual Information' section.

Taxonomy-eligible economic activities that were assessed as non-material – and therefore excluded from the scope of the alignment analysis –

were nevertheless fully included in the denominator of each KPI (Turnover, CapEx, and OpEx), in line with the requirements of the Disclosure

Delegated Act.

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 Commission Delegated Regulation (EU) 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 following 'EU Taxonomy-

related KPIs and Contextual Information' section.

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 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 €13,129 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 (excluding used vehicles) and from powertrains. Revenues from the

defence business 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

€805 million

▪ the numerator is equal to the portion of capital expenditures within the denominator attributable to the revenue-generating activities identified

(CapEx A). For the level of eligibility and alignment, please refer to Table C.

Board Report Sustainability Statement 44

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). 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 and aligned according to the European Taxonomy, as per the new templates included in Annex II of the Commission Delegated

Regulation (EU) 2026/73 of 4 July 2025.

The proportions of turnover, CapEx, and OpEx identified as aligned increased by 6%, 5%, and 5%, respectively. This improvement was mainly

driven by electric bus revenues, investments, and operating expenditures, which reflect the Group’s continuous commitment to expanding its

portfolio of renewable and low-emission mobility solutions.

Table A – Summary of Proportion of Turnover, CapEx, and OpEx from Products or Services Associated with Taxonomy-Eligible and/or

Taxonomy-Aligned Economic Activities

Disclosure covering Financial Year 2025


KPI	Total	Proportion of Taxonomy- eligible activities	Taxonomy aligned activities	Proportion of Taxonomy- aligned activities	Breakdown by environmental objectives of Taxonomy-aligned activities						Proportion of enabling activities	Proportion of transitional activities	Not assessed activities considered non- material	Taxonomy- aligned activities in previous financial year (N-1)	Proportion of Taxonomy- aligned activities in previous financial year (N-1)
KPI	Total	Proportion of Taxonomy- eligible activities	Taxonomy aligned activities	Proportion of Taxonomy- aligned activities	Climate Change Mitigation	Climate Change Adaptation	Water	Circular Economy	Pollution	Biodiversity	Proportion of enabling activities	Proportion of transitional activities	Not assessed activities considered non- material
	€ million	%	€ million	%	%	%	%	%	%	%	%	%	%	€ million	%
Turnover	13,129	57	2,193	17	17	—	—	—	—	—	17	—	3	1,714	11
CapEx	805	25	205	25	25	—	—	—	—	—	25	—	5	206	20
OpEx	421	27	77	18	18	—	—	—	—	—	18	—	1	69	13

Table B – Proportion of Turnover from Products or Services Associated with Taxonomy-Eligible and/or Taxonomy-Aligned Economic Activities

Disclosure covering Financial Year 2025


Economic Activities	Code	Taxonomy- eligible KPI (Proportion of Taxonomy- eligible Turnover)	Taxonomy- aligned KPI (monetary value of Turnover)	Taxonomy- aligned KPI (Proportion of Taxonomy- aligned Turnover)	Environmental objectives of Taxonomy-aligned activities						Enabling activity	Transitional activity	Proportion of Taxonomy- aligned in Taxonomy- eligible
Economic Activities	Code		Taxonomy- aligned KPI (monetary value of Turnover)		Climate Change Mitigation	Climate Change Adaptation	Water	Circular Economy	Pollution	Biodiversity	Enabling activity	Transitional activity	Proportion of Taxonomy- aligned in Taxonomy- eligible
		%	€ million	%	%	%	%	%	%	%			%
Manufacture of low carbon technologies for transport	CCM 3.3	57	2,193	17	17	—	—	—	—	—	E		29
Manufacture of automotive and mobility components	CCM 3.18	0.3	0.3	—	—	—	—	—	—	—	E		100
Sum of alignment per objective					17	—	—	—	—	—
Total KPI (Turnover)		57	2,193	17	17	—	—	—	—	—			29

Board Report Sustainability Statement 45

Table C – Proportion of CapEx from Products or Services Associated with Taxonomy-Eligible and/or Taxonomy-Aligned Economic Activities

Disclosure covering Financial Year 2025


Economic Activities	Code	Taxonomy- eligible KPI (Proportion of Taxonomy- eligible CapEx)	Taxonomy- aligned KPI (monetary value of CapEx)	Taxonomy- aligned KPI (Proportion of Taxonomy- aligned CapEx)	Environmental objectives of Taxonomy-aligned activities						Enabling activity	Transitional activity	Proportion of Taxonomy- aligned in Taxonomy- eligible
Economic Activities	Code		Taxonomy- aligned KPI (monetary value of CapEx)		Climate Change Mitigation	Climate Change Adaptation	Water	Circular Economy	Pollution	Biodiversity	Enabling activity	Transitional activity	Proportion of Taxonomy- aligned in Taxonomy- eligible
		%	€ million	%	%	%	%	%	%	%			%
Manufacture of low carbon technologies for transport	CCM 3.3	24	193	24	24	—	—	—	—	—	E		100
Manufacture of automotive and mobility components	CCM 3.18	1.5	12	1.5	1.5	—	—	—	—	—	E		100
Sum of alignment per objective					25	—	—	—	—	—
Total KPI (CapEx)		25	205	25	25	—	—	—	—	—			100

Table D – Proportion of OpEx from Products or Services Associated with Taxonomy-Eligible and/or Taxonomy-Aligned Economic Activities

Disclosure covering Financial Year 2025


Economic Activities	Code	Taxonomy- eligible KPI (Proportion of Taxonomy- eligible OpEx)	Taxonomy- aligned KPI (monetary value of OpEx)	Taxonomy- aligned KPI (Proportion of Taxonomy- aligned OpEx)	Environmental objectives of Taxonomy-aligned activities						Enabling activity	Transitional activity	Proportion of Taxonomy- aligned in Taxonomy- eligible
Economic Activities	Code		Taxonomy- aligned KPI (monetary value of OpEx)		Climate Change Mitigation	Climate Change Adaptation	Water	Circular Economy	Pollution	Biodiversity	Enabling activity	Transitional activity	Proportion of Taxonomy- aligned in Taxonomy- eligible
		%	€ million	%	%	%	%	%	%	%			%
Manufacture of low carbon technologies for transport	CCM 3.3	24	65	15	15	—	—	—	—	—	E		65
Manufacture of automotive and mobility components	CCM 3.18	3	12	2.8	2.8	—	—	—	—	—	E		93
Sum of alignment per objective
Total KPI (OpEx)		27	77	18	18	—	—	—	—	—			68

⁽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 46

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 set specific

strategic sustainability targets for Scope 1, 2, and 3 emissions, to be achieved by year-end 2030, and incorporated them into its Strategic

Business Plan:

▪ for Scope 1 and 2 emissions, Iveco Group is committed to reducing CO2 emissions in its manufacturing processes by 50% (compared to the

2019 base year), by minimising fossil fuel use and increasing the use of renewable energy

▪ for Scope 3 emissions, the Group aims to reduce by 38% the Scope 3 CO2 emissions from the use of sold products⁽³²⁾ per vehicle/km

(compared to 2022).

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 as per 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. The 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.

Iveco Group continuously monitors the progress of its transition plan; below is a snapshot of the results achieved in 2025.

Board Report Sustainability Statement 47

CO2 Emissions Targets^(a)


Scope 1 & 2	Target	2025 Progress
Absolute CO2 emissions (Scope 1 & 2) from the manufacturing plants within the Focus Area ^(b) (tCO2eq)	2030: -50% vs 2019	-29.6%
Scope 3
Cat. 1 - Absolute CO2 emissions generated by major suppliers of purchased goods and services	2030: -30% vs 2022	Activities on schedule
Cat. 4 - CO2 emissions per ton of goods shipped (kgCO2 eq)	2026: -7% vs 2022	-6.0%
Cat. 11 - CO2 emissions from the use of sold products ^(c) (gCO 2 eq per vehicle/km)	2030: -38% vs 2022	-9.1%

^(a) For the calculation methodology used, see 3.5 Climate Metrics.

(b) For the definition of the Focus Area reporting 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 interdisciplinary 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 2030 climate scenario (also incorporating the time horizons of the Group's Enterprise Risk Management

(ERM) and Strategic Business Plan)

▪ 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 in line with the requirements of

both the European Sustainability Reporting Standards (ESRS) and the International Financial Reporting Standards (IFRS) S2 Climate-related

Disclosures. This assessment considers each of the following climate-related risk categories when identifying risks and opportunities and

assessing their likelihood and potential magnitude of impact:

▪ current and emerging regulations

▪ technology risk

▪ policy and legal risks

▪ market risk

▪ reputational 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).

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

⁽³³⁾ Representative Concentration Pathways (RCPs) are a climate scenario analysis tool, with each scenario describing a potential future trajectory of greenhouse gas concentrations and

the resulting global warming effect (i.e., radiative forcing, or RF) up to the year 2100.

⁽³⁴⁾ Analysis conducted on 2024's total insured value under the control of the Loss Prevention Centre of Competence as at the third quarter of the year.

Board Report Sustainability Statement 48

▪ 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 Enterprise Risk Management (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.

Iveco Group performed a climate change risk analysis to assess potential changes in risk exposure over the short, medium, and long term

(2025-2040), covering each physical risk pertinent to each site within its risk perimeter (including proprietary plants as well as a selection of key

supplier and dealer of property sites). Site-specific exposure to individual physical risk events was assessed using outputs from climate-risk data

tools and projections from the Intergovernmental Panel on Climate Change (IPCC), considering variables such as maximum precipitation levels,

surface wind speed, maximum temperatures, and consecutive dry days as the main drivers of the assessment.

For the medium- and long-term analysis, the Group used the weather patterns associated with the IPCC's RCP⁽³³⁾ 8.5 scenario, which is based on

various projections regarding emissions, policies, and rising temperature levels. This climate scenario, which was applied in conjunction with the

Shared Socioeconomic Pathway (SSP5) scenario, assumes rapid global economic growth driven by fossil energy and limited climate policy

implementation. Under this pathway, average global temperatures are projected to increase by approximately 2°C by 2050 and by up to 5°C by

2100 as a result of high greenhouse gas emissions. This combined RCP 8.5/SSP5 scenario represents one of the most severe global warming

pathways and associated physical impacts, projecting extreme climate conditions and a significant increase in the frequency and intensity of

extreme weather events, including heatwaves, floods, droughts, and rising sea levels. This scenario-based approach aligns with best practices in

climate risk management and supports the Group's strategic resilience planning for physical risks under the worst-case scenario.

The physical climate risks assessment is performed with the support of the loss prevention engineering provider and of the technical departments

of the insurance and reinsurance companies. The latest assessment of material physical climate risks covered 84% of the Group's insured

value⁽³⁴⁾. Furthermore, new projects and initiatives are analysed from the earliest stages of development to ensure the highest level of prevention

of and protection from material physical climate risks.

Based on the assessment, most of the aforementioned sites within the defined risk perimeter are located in areas not associated with particularly

high levels of physical climate risk exposure. The main exception relates to heatwaves, which may affect all locations globally with increasing

intensity. In addition, a limited number of sites are located in areas with higher exposure to specific physical risks – such as hailstorms (Italy,

France, and Argentina), flash floods (Italy), and water stress (Italy and Spain). With regard to the suppliers within the scope of the analysis, their

sites are mainly exposed to risk of hailstorms, flash floods, water stress, and heat and cold waves.

No matter how rare or unlikely to occur, extreme natural events will nevertheless continue to pose a risk to the Group due to the significant

damage they can cause. Overall, the main potential impacts affecting the Group's plants are associated with river and flash floods, hurricanes,

cyclones, tornados, windstorms, and hailstorms, all of which are considered material physical risks.

▪ Floods: the risk of flooding from overflowing rivers or heavy rainfall is considered relevant for many sites. Floods may result in water intrusion

into buildings and sewer backups, potentially causing damage to structures, machinery, and stored products, disrupting production capacity

until facilities are repaired, and leading to unforeseen maintenance costs.

Material risk for: Bolzano, Brescia, Foggia, Piacenza, Suzzara, and Turin (Italy); Bourbon-Lancy (France).

▪ Hurricanes, cyclones, and tornadoes: although the tornadoes to which the Organisation's assets are potentially exposed are mostly of

medium intensity, these events may still result in severe impacts, such as significant damage to roofs and external structures, blocked access

roads due to fallen trees, and temporary disruptions to electricity and water supply networks.

Material risk for: Bolzano, Brescia, Foggia, and Suzzara (Italy); Bourbon-Lancy (France).

▪ Windstorms: exposure to strong windstorms may result in damage to buildings (roofs, external walls, and windows), temporary interruptions to

electricity and/or water supplies, and significant damage to vehicles, trees, and any external property.

Material risk for: Rorthais (France).

▪ Hailstorms: most Group assets are exposed to large-sized hail, which could result in damage to windows, roofs, external structures, and

vehicles. Hail events may also lead to operational disruptions due to restricted movement of personnel and vehicles outside buildings, as well

as to power supply outages.

Material risk for: Foggia (Italy); Bourbon-Lancy (France); Vysoke Myto (Czech Republic).

⁽³⁵⁾ Figures relate to the period from 1 January 2025 to 31 December 2025 (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⁾ European Sustainability Reporting Standards.

⁽³⁸⁾ International Financial Reporting Standards.

⁽³⁹⁾ Net Zero Emissions, a scenario that outlines a pathway for the global energy sector to achieve net zero CO2 emissions by 2050.

⁽⁴⁰⁾ Representative Concentration Pathways (RCPs) are a climate scenario analysis tool, with each scenario describing a potential future trajectory of greenhouse gas concentrations and

the resulting global warming effect. 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.

⁽⁴¹⁾ 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 pathway.

Board Report Sustainability Statement 49

However, the mitigation measures in place, combined with the Group's insurance coverage, significantly limit the potential net economic impacts

for most assets (property damage), bringing them well below the materiality threshold. In 2025⁽³⁵⁾, the Group identified investments for a total of

more than €1.2 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 over €93.6 million, resulting in a Global Efficiency Index⁽³⁶⁾ (GEI) of

0.013, 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. Over the year, the Group's loss-prevention investments cut the expected loss due to property

damage by 58% and due to business interruptions by 42%.

3.2.2 Transition risks

Iveco Group's transition risk and opportunity assessment process started with the identification of key trends and drivers relevant to the

Organisation and its industry. The assessment was performed according to ESRS⁽37⁾ requirements as well as IFRS⁽³⁸⁾S2 guidelines – considering

the latter's main climate-related risk and opportunity categories: Market, Policy and Legal, Technology, Reputation, and Liabilities.

The main drivers considered to identify Iveco Group's medium- to long-term transition risks and opportunities were:

▪ market trends – including the diffusion of electric vehicles and the declining role of internal combustion engines (ICEs) in developed countries;

changes in mobility habits in public and private transport; unavailability and price volatility of materials (particularly for metals, semi-conductors,

and batteries); and the increase in carbon prices and green accounting practices

▪ policy trends – such as stricter vehicle emissions standards and ICE sales regulations, the introduction of new green production requirements,

mandatory climate-related disclosures, and increased regulatory efforts in other areas, such as health and safety

▪ technology trends – including the growing demand for green technologies, such as low-carbon materials and innovative battery chemistries, and

the adoption of clean-tech production technologies

▪ reputational trends – such as changing stakeholder perceptions of climate-related issues.

The medium- to long-term analysis (2030-2040) of climate transition risks and opportunities was conducted using the NZE2050⁽³⁹⁾ scenario of the

International Energy Agency (IEA), which provides detailed projections for the energy and automotive markets, alongside the IPCC's RCP⁽⁴⁰⁾1.9

scenario and the associated Shared Socioeconomic Pathway SSP1⁽⁴¹⁾. These scenarios reflect a set of assumptions regarding future emissions

trajectories, climate and energy policies, technological development, and macroeconomic trends. The resulting projections describe a more

sustainable global transition pathway consistent with achieving net-zero emissions by 2050 and with limiting the global temperature rise to 1.5°C

by 2100. This transition is underpinned by 4 key pillars: large-scale clean energy electrification, significant improvements in energy efficiency,

increased use of low-emissions fuels, and methane abatement. Consumption patterns within this pathway are characterised by lower material

growth and reduced resource and energy intensity, supported by increased investment in renewable energy, low-carbon technologies, and

ongoing efficiency improvements and innovation. This scenario was selected in line with best practices in climate risk management, as it exposes

the Organisation to one of the most demanding future pathways and enables the assessment of the implications, risks, and opportunities

associated with such a stringent and ambitious decarbonisation transition. It is also consistent with the Group's strategic commitment to achieving

net-zero carbon emissions by 2040.

Once the scenario of reference was clearly defined, the Group created a risk register to map the climate-related transition risks and opportunities

identified as most relevant to the Organisation (linking each to the aforementioned drivers). Their relevance was assessed through a qualitative

analysis, supplemented by an in-depth quantitative analysis of a number of them. The assessment process involved a series of interviews with

representatives from various business units – from senior strategists to operational functions – enabling targeted evaluations for each transition

risk and opportunity identified and the collection of supporting data for the quantitative analyses. Risk assessment results were subsequently

validated within the Group's Climate Change Risk Management (CCRM) framework through alignment with the Enterprise Risk Management

(ERM) function, followed by final validation by the Senior Leadership Team (SLT).

Both transition risks and opportunities are classified as material if they have the potential to result in a substantive financial or strategic impact on

Group performance. Transition risks are considered significant business disruptors, and opportunities significant business enablers, if they lead to

any of the following:

▪ a negative or positive effect on one or more key strategies designed to improve the Group's stability and growth

▪ the prolonged suspension, or the launch or enhancement, of essential business activities

▪ the loss or seizure, or the acquisition or safeguarding, of key assets or profits

Board Report Sustainability Statement 50

▪ negative or positive repercussions on the Group's reputation or image, resulting in: a substantial decrease or increase in share price; strained or

strengthened relations with stakeholders; a significant adverse or favourable impact on rankings, potentially leading to exclusion from or

inclusion in financial or sustainability rating indices.

The final risk register comprised 28 risks and 16 opportunities associated with the main drivers identified. Of these, 9 risks and 4 opportunities

were identified as material in the medium and/or long term, as described below.

Risks:

▪ The ongoing expansion of electric vehicles (EVs) and the contraction of the internal combustion engine (ICE) market may impact the

competitive landscape and market dynamics (market risk, material in both the medium and long term).

▪ A shift to mixed transport technologies that incorporate solutions beyond the Group's portfolio may reduce sales and/or increase investment

costs (market risk, material in the long term).

▪ Challenges in optimising the mix between renewable and alternative energy sources may lead to higher energy costs (market risk, material in

the medium term).

▪ New or increasingly stringent emissions regulations may require changes across the entire value chain and potentially reduce product sales

(policy and legal risk, material in both the medium and long term).

▪ Increasingly stringent environmental regulations may shorten product life cycles (policy and legal risk, material in the medium term).

▪ The investment costs required to comply with EU regulations may reduce cash flow (policy and legal risk, material in the medium term).

▪ Ensuring legal compliance and protecting people and assets from climate-related events may increase health and safety investment costs

(policy and legal risk, material in both the medium and long term).

▪ The streamlining of battery pack assembly processes may reduce the required workforce (technology risk, material in the long term).

▪ Failure to anticipate future market dynamics regarding green products or production technologies may reduce competitiveness (technology risk,

material in the long term).

Opportunities:

▪ The electrification trend may enhance market consolidation, increasing the Group's market share (market opportunity, material in both the

medium and long term).

▪ The development of products and services that keep pace with evolving customer behaviours and purchasing patterns may strengthen the

Group's market position (market opportunity, material in the long term).

▪ The consolidation of electrification may generate financial benefits associated with higher margin products and improved efficiency (market

opportunity, material in the medium and long term).

▪ A regulatory shift supporting the use of carbon-neutral fuels to achieve CO2 reduction targets may create opportunities to extend the viability of

ICEs while reducing the overall cost of electrification (policy and legal opportunity, material in the medium term).

Quantifying the exact financial impacts of climate-related risks and opportunities remains challenging due to the inherent uncertainties in

projections and scenarios. However, where sufficiently accurate and robust assumptions could be made, the Group has estimated the economic

impacts of its risks and opportunities, providing substantial financial information to support its climate change risk assessment.

3.3 POLICIES RELATED TO CLIMATE CHANGE (E1-2)

Iveco Group's 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.

⁽⁴²⁾ Principle 15 of the Rio Declaration on Environment and Development, approved by the United Nations in 1992.

Board Report Sustainability Statement 51

3.3.1 Environmental Policy

Iveco Group considers climate change mitigation and adaptation, as well as the optimisation of energy consumption, to be of the utmost

importance, as the greenhouse gas emissions generated by its 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. Initiatives such as 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 – help reduce emissions

during vehicle use and therefore contribute to tackling climate change. The importance of these topics is reflected in the extensive regulatory

framework applicable to engine and vehicle emissions, and failure to comply with its requirements 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⁽⁴²⁾. 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

▪ 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.

⁽⁴³⁾ For the definition of the Focus Area reporting scope, see 1.1 General Basis for the Preparation of the Sustainability Statement.

⁽⁴⁴⁾ The base year (2019) Scope 1 and 2 emissions are equal to 98,300 tCO2eq. The base year data was recalculated to reflect the change in reporting scope resulting from the sale of the

Group's firefighting business. 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 52

In 2025, Iveco Group continued to monitor energy performance at each of its plants (representing the Focus Area⁽⁴³⁾), as well as their secondary

vectors and their compliance with the Group's Energy Action Plan, using its Energy Monitoring & Targeting (EM&T) 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, thereby increasing the level of people

engagement and awareness.

With regard to Iveco Group's Focus Area reporting scope, as at the end of 2025, 20 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 apply to other sites beyond the Focus Area, such as those in San Mauro Torinese (Italy), Garchizy (France) and, as

of 2025, Ulm (Germany).

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

▪ 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 2025 total expenditure for energy projects was allocated as follows: €2.95 million in capital expenditures (CapEx) and €260,000 in operational

expenditures (OpEx), with part of these investments linked to projects from previous years. Notably, the efficiency initiatives introduced during the

year resulted in annual savings of approximately €1.12 million. The simple payback period is estimated at around 2 years. Moreover, the projects

in place led to a yearly reduction in energy consumption of approximately 10,200 MWh and in CO2eq emissions of about 3,200 tons (as per the

market-based method).

2025 Energy Improvement Projects in Detail

Focus Area


	Annual energy reduction due to 2025 projects (MWh)	Total project cost(a) (€ thousands)
Lighting efficiency	301	153
Electric power efficiency systems	1,171	526
Heating systems	530	386
Technological heat systems	8,242	1,152
Total	10,244	2,217

(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⁽⁴⁴⁾).

In 2025, within the scope of the Focus Area, the Group achieved the following results:

▪ 100% of total electricity consumption derived from renewable sources (already achieved, ahead of schedule)

▪ a 29.6% reduction in absolute CO2eq emissions (Scope 1 and 2) compared to the 2019 base year.

Regarding the 50% reduction target in CO2eq emissions compared to the 2019 base year, Scope 1 accounts for approximately 60% of the

reduction, while Scope 2 contributes around 40%.

Each decarbonisation initiative's contribution to reaching the overall target is shown in the following table.

⁽⁴⁵⁾ The target refers to vehicles manufactured in Europe.

Board Report Sustainability Statement 53

Main Emission Reduction Initiatives and Expected Outcomes

Focus Area


	2019 Base year^(a) (tCO2 eq)	2030 Target (%)
GHG emissions – Scope 1 & 2	98,300	50
Building refurbishments		1
Energy efficiency systems		2
Renewable energy systems		16
Management initiatives		11
Heat recovery systems		2
Building energy management systems (BEMS)		1
Electrification of heat production and fuel switching (process & heating)		17

(a) The base year (2019) Scope 1 and 2 emissions are equal to 98,300 tCO2eq. The base year data was recalculated to reflect the change in reporting scope resulting from the sale of the

Group's firefighting business. For information on the rationale for choosing 2019 as the base year, see 1.1 General Basis for the Preparation of the Sustainability Statement.

In 2025, approximately 2,200 hours of training were provided (mainly by in-house professionals) to more than 3,200 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.

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 strategic sustainability target,

incorporated into its Strategic Business Plan, focused specifically on Category 11 CO₂ emissions, considering future product types and volumes:

to reduce by 38% the Scope 3 CO2 emissions from the use of sold products⁽⁴⁵⁾ per vehicle/km (compared to 2022). It has also committed to

cutting emissions across its value chain by focusing on purchased goods and services and on 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 2025, Iveco Group continued to monitor and interact with its supplier network through Open-es, the community-based digital platform it 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 2025 accounted for approximately 92% 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.

⁽⁴⁶⁾ 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 54

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 and services, by year-end 2030

(compared to 2022). For further details on:

▪ the target definition process

▪ stakeholder involvement in target setting

▪ the 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.

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.

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

▪ the 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(46) 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).

⁽⁴⁷⁾The target refers to vehicles manufactured in Europe.

⁽⁴⁸⁾XTL (X-to-Liquid) refers to synthetic diesel fuels, including HVO, that meet the EN15940 standard.

Board Report Sustainability Statement 55

By year-end 2025, the containment initiatives in place had already allowed the Organisation to cut CO2 emissions by 2.4% compared to the

previous year (in terms of kilos of CO2 emissions per ton of goods shipped).

CO2 Emissions in Logistics Processes(a)

Group-Wide (tCO2eq)


	2025	2024
Inbound	88,003	86,500
Outbound	54,404	54,988
Spare parts	16,214	21,040
Total	158,621	162,528

^(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 portfolio of products, each delivering a very different range of features to perform the very different tasks it was

designed for. Adding to this broad product mix is Brand FPT, 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 multi-energy approach. Currently, this approach includes propulsion systems powered by traditional

technologies as well as by natural gas (NG), biofuels, electrified 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. In 2025, R&D investments focused mainly on zero-emission vehicles, electrification, multi-fuel

energy solutions, and digitalisation, totalling €672 million. For more information, see 'Research and Development' in this Annual Report.

To achieve net zero carbon by 2040, the strategic sustainability targets set by Iveco Group and incorporated into its Strategic Business Plan

include a vehicle CO2 emissions reduction target for year-end 2030: to reduce by 38% the Scope 3 CO2 emissions from the use of sold

products⁽⁴⁷⁾ 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). For further details on:

▪ the target definition process

▪ stakeholder involvement in target setting

▪ the 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.

Internal Combustion Engines

The XC13 engine, installed in the new IVECO S-WAY Model Year 2024, is Brand FPT'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 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% is attributable to the engine itself, compared to the same truck fitted with a C13 Diesel engine (Model

Year 2022). The 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 is actively researching second-generation renewable biofuels in accordance with EN15940 fuel specifications, with a particular focus on

hydrotreated vegetable oil (HVO) and other renewable XTL⁽⁴⁸⁾ solutions. 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.

⁽⁴⁹⁾ Source: study carried out by the Institute of Atmospheric Pollution of the Italian National Research Council (CNR).

Board Report Sustainability Statement 56

FPT's N67 engine is homologated for use with B100 biodiesel in accordance with EN14214, the European standard for biodiesel, and is featured

in the CROSSWAY intercity coach produced by Brand IVECO BUS. This new version 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 in mid-2024. The Brand is also exploring a retrofit

protocol for its existing CROSSWAY fleet equipped with the N67 Euro VI step E engine.

For internal combustion engines (ICEs), biomethane remains one of the best alternatives to diesel over the medium term. Indeed, all of the

Organisation's currently available natural gas (NG) engines are 100% biomethane-compatible, the many benefits of which include:

▪ full compatibility with existing NG technology

▪ fully renewable fuel

▪ near-zero well-to-wheel CO2 emissions – or even negative emissions (up to 120%⁽⁴⁹⁾ fewer compared to diesel) if sourced from manure

▪ alignment with circular economy principles.

With over 100,000 units sold to date, FPT 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 currently available in Europe, delivering up to 10% fewer CO2 emissions compared

to its diesel version. It is featured in the IVECO Eurocargo truck Model Year 2024 as well as in the brand new IVECO BUS G-WAY – a

biomethane-compatible midibus that essentially replaces the previous diesel version – supporting Iveco Group's portfolio transition to low-carbon

transport solutions. Beyond road transport, the N67 NG engine is used in agricultural tractors, further highlighting its versatility across applications.

FPT is also advancing NG engine development by focusing on multipoint stoichiometric combustion, currently the most cost-effective solution to

meet Euro VI emissions standards. This technology enables a substantial reduction in harmful emissions (such as hydrocarbons and NOX) to very

low levels, and is already used in commercial vehicles, buses, specialty vehicles, and agricultural equipment. It is currently available in FPT’s

Cursor, NEF, and F1 engine series, offering customers significant cost benefits throughout the entire service life of vehicles.

Meanwhile, IVECO BUS further expanded its compressed natural gas (CNG) portfolio, confirming its position as Europe's leader in CNG mobility.

The Brand’s portfolio includes vehicles covering all types of passenger transport, with URBANWAY, CREALIS, and CROSSWAY models

available in low-entry and normal floor variants, all of which are also available in mild hybrid versions. The newest model, the G-WAY midibus,

combines the environmental benefits of natural gas and biomethane with high performance and a range of up to 500 kilometres. This mid-size NG

city bus features compact dimensions (9.5 or 10.7 metres in length and 2.33 metres wide) and exceptional manoeuvrability, providing a

sustainable mobility solution for narrow streets, mountainous regions, and areas with low population density.

Finally, 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-highway), and avoids the need for an electric motor to provide power assist. Within this context, FPT is currently

developing its H2-ICE technology, designing a new series of engines offering modular, multifuel solutions that are simple to install.

E-Powertrain

Brand FPT has a dedicated cross-functional ePowertrain business line that focuses on the development of electric vehicle technologies. The aim

is to meet customer needs with a wide range of tailor-made alternative ePropulsion and energy storage solutions that can be adapted to multiple

applications and industry segments, thus strengthening the Brand's positioning in the market as a multi-energy solutions provider.

To date, FPT's portfolio includes:

▪ ePropulsion (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).

Among the 3 eDriveline solutions within the Brand's ePropulsion portfolio, eAxles are a premium technological solution to maximise efficiency and

optimise energy usage, with a complete line-up launched in 2024 for vehicles ranging from 3.5 to 49 tons.

As regards energy storage systems, FPT 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-highway vehicles.

⁽⁵⁰⁾ NMC refers to a Nickel Manganese Cobalt-based lithium-ion cathode chemistry.

Board Report Sustainability Statement 57

The complete battery line-up is modular (more than one pack can be mounted in parallel). Moreover, NMC⁽⁵⁰⁾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 EVO batteries come with a

Battery Passport, with traceable information collected via blockchain technology. Both solutions are already compliant with the ECE Regulation

100 Rev.3 on electric vehicle safety. Additionally, the eBS 37 EVO battery pack can be reused (and thus its lifespan extended) thanks to the

Brand's proprietary battery management system (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. A proof of concept (PoC) life cycle assessment (LCA) was performed on the eBS37 EVO battery pack to assess its carbon

footprint, with results indicating an optimised environmental profile. As at year-end 2025, FPT had delivered approximately 30,000 ePowertrain

units to customers. All products are assembled and validated in carbon-neutral manufacturing and testing facilities.

IVECO has recently expanded its electric vehicle portfolio beyond the all-electric IVECO eDaily commercial van, with the launch of the new

IVECO S-eWay battery-electric truck and of the eJolly and eSuperJolly electric vans, both developed in partnership with Stellantis. As a result, the

Brand now offers a fully electric line-up designed to address any operational needs, from urban and regional applications to the most demanding

missions. Acting as an eMobility partner, IVECO delivers an integrated ecosystem of vehicles, charging solutions, and smart digital services to

accelerate the transition to more sustainable operations. Digital services, such as the IVECO ON Portal and the Smart Routing and Easy Apps,

provide real-time insights, predictive range management, and remote charging control, helping fleets reduce energy waste, optimise routes, and

improve overall efficiency. Moreover, as at year-end 2025, the IVECO Customer Uptime Centre was monitoring more than 3,000 electric vehicles,

enabling proactive maintenance and operational continuity. This approach supports customers' sustainability objectives by extending vehicle

service life, reducing resource consumption, and minimising unplanned downtime – key factors in lowering life cycle emissions and enhancing

operational resilience. Completing this ecosystem are IVECO eCharge Solutions, which support electrification by enabling private depot charging

and providing access, via the IVECO eCharge Card, to a European-wide public network of more than one million charging points, including

10,000 ultra-fast stations and an increasing number of truck-ready sites.

Brand IVECO BUS also extended its range of electric vehicles, covering all the demands of urban, suburban, and interurban missions. Following

the successful introduction of the E-WAY (with versions ranging from midibus to articulated) and the CROSSWAY ELEC (available in low-entry

and normal floor variants), the portfolio was completed with the addition of a new minibus model: the eDAILY Low Entry, showcased at Busworld

2025. This new electric version of the eDaily minibus provides easy access for wheelchair users thanks to its central section equipped with a

ramp, and can accommodate 2 or 3 eDaily batteries, providing up to 148 kWh of energy storage. The positive response to this portfolio from

transport authorities and operators translated into record registrations of IVECO BUS battery electric vehicles (BEVs) in 2025, with over 1,200

units registered in Europe. To support the sale of its electric vehicles, the Brand has also set up Energy Mobility Solutions, which further boosts its

added value, providing consulting services and delivering turn-key projects. Over 50 projects have been managed to date, involving the sale of

over 750 chargers for the Brand’s buses.

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 greater 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 Fuel Cell is a heavy-duty electric truck for the European market, offering a range of up to 800 kilometres and fitted with

Bosch fuel cells and an FPT eAX 840-R eAxle. In 2025, its pre-series version was deployed under the EU-funded H2Haul project to selected

customers, for real-world testing of this first-generation prototype. This will allow the Group to learn from its practical application, identify areas for

improvement, and fine-tune the vehicle, while demonstrating that it can effectively deliver the most demanding heavy-duty missions – a long-

established benchmark for conventional diesel vehicles.

Within the light-duty range, in 2024, IVECO and Hyundai unveiled a working prototype of the eDaily Fuel Cell, featuring Hyundai's 90 kW

hydrogen fuel cell system, along with an eCD 140-R central electric drive system and eBS 37 EVO modular battery pack designed, developed,

and produced by FPT. 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 Fuel Cell will be ideal for long-haul, high-payload, and high-energy-demand missions. For passenger transport, at the end of 2025, IVECO

BUS delivered the first serial production of the e-Way Fuel Cell for operation in Lorient (France). Deliveries will continue in 2026, based on new

orders acquired in 2025 for Dunkerque and Annecy (France) and for Gorizia (Italy).

⁽⁵¹⁾For the definition of the Group-Wide reporting scope, see 1.1 General Basis for the Preparation of the Sustainability Statement.

⁽⁵²⁾ For the definition of the Focus Area reporting scope, see 1.1 General Basis for the Preparation of the Sustainability Statement.

(53) Types of energy included: electricity, heat, steam, cooling, natural gas, metallurgical coal, diesel, and other fuels.

⁽⁵⁴⁾ Fuel used to test products is not included.

Board Report Sustainability Statement 58

3.5 CLIMATE METRICS

3.5.1 Energy consumption and mix (E1-5)

In 2025, Iveco Group reported a total energy consumption of 1,125,910 MWh within its Group-Wide reporting scope(51). Meanwhile, within the

scope of the Focus Area(52), the Organisation's energy performance – defined as total internal energy consumption(53) divided by hours of

production – saw an improvement, with the key performance indicator (KPI)(54) falling by approximately 23% compared to the 2019 base year.

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 total energy consumption per production unit (MWh/hour of production) by year-end 2030 (compared to 2019).

Energy Production Mix

Group-Wide


	2025	2024 Recast ^(a)	2024
Fuel consumption from crude oil and petroleum products (MWh)^(b)	131,685	118,560	121,279
Fuel consumption from natural gas (MWh)	568,798	598,852	605,402
Consumption of purchased or acquired electricity, heat, steam, and cooling from fossil sources (MWh)	29,335	96,107	97,121
Total fossil energy consumption (MWh)	729,818	813,519	823,802
Share of fossil sources in total energy consumption (%)	64.8	69.6	69.1
Fuel consumption from renewable sources, including biomass^(c) (MWh)	-	-	-
Consumption of purchased or acquired electricity, heat, steam, and cooling from renewable sources (MWh)	387,796	347,761	360,994
Consumption of self-generated non-fuel renewable energy (MWh)	8,296	7,662	7,662
Total renewable energy consumption (MWh)	396,092	355,423	368,656
Share of renewable sources in total energy consumption (%)	35.2	30.4	30.9
Total energy consumption (MWh)	1,125,910	1,168,942	1,192,458

^(a)The 2024 Recast column reports figures recalculated after excluding Iveco Group's former Fire Fighting Business Unit.

^(b)The 2024 figures were recalculated to reflect a more granular analysis of car fleet energy consumption and were disclosed in line with ESRS 1 paragraph 7.1. For additional information,

see the relevant 'Data Calculation Methodology' section.

^(c)Also comprising industrial and municipal waste of organic origin, biogas, renewable hydrogen, etc.

Energy Production Mix

Focus Area


	2025	2024 Recast ^(a)	2024
Fuel consumption from crude oil and petroleum products (MWh)	38,731	39,465	40,400
Fuel consumption from natural gas and consumption of purchased or acquired electricity, heat, steam, and cooling from fossil sources (MWh)	370,384	391,722	396,425
Total fossil energy consumption (MWh)	409,115	431,187	436,825
Share of fossil sources in total energy consumption (%)	55.6	55.6	55.0
Fuel consumption from renewable sources, including biomass^(b) (MWh)	—	—	—
Consumption of purchased or acquired electricity, heat, steam, and cooling from renewable sources (MWh)	318,156	336,914	350,001
Consumption of self-generated non-fuel renewable energy (MWh)	8,179	7,560	7,560
Total renewable energy consumption (MWh)	326,335	344,474	357,561
Share of renewable sources in total energy consumption (%)	44.4	44.4	45.0
Total energy consumption (MWh)	735,450	775,661	794,386

^(a)The 2024 Recast column reports figures recalculated after excluding Iveco Group's former Fire Fighting Business Unit.

^(b)Also comprising industrial and municipal waste of organic origin, biogas, renewable hydrogen, etc.

⁽⁵⁵⁾The revenues used to calculate the intensity ratio include discontinued operations, except in the case of recast data.

Board Report Sustainability Statement 59

Energy Production Mix — Excluding Crude Oil and Petroleum Products

Focus Area^(a)


	2025	2024 Recast^(b)	2024
Total energy consumption (MWh)	696,719	736,196	753,986
Total energy consumption / total manufacturing hours	0.0236	0.0254	0.0251

^(a) The base year (2019) KPI is equal to 0.0306 MWh/total manufacturing hours. The base year data was recalculated to reflect the change in reporting scope resulting from the sale of the

Group's firefighting business. For information on the rationale for choosing 2019 as the base year, see 1.1 General Basis for the Preparation of the Sustainability Statement. The target

scope excludes fuel consumption from crude oil and petroleum products.

^(b) The 2024 Recast column reports figures recalculated after excluding Iveco Group's former Fire Fighting Business Unit.

Consumption from Nuclear Sources

Group-Wide


	2025	2024 Recast^(a)	2024
Consumption^(b) from nuclear sources (MWh)	6,105	6,555	6,690
Share of consumption from nuclear sources in total energy consumption (%)	0.5	0.6	0.6

^(a)The 2024 Recast column reports figures recalculated after excluding Iveco Group's former Fire Fighting Business Unit.

^(b) Energy consumption from nuclear sources (and this figure as a percentage of total energy consumption), is calculated based on total electricity consumption and the markets from which

it is purchased. When using a location-based approach (used to calculate emissions based on the average emissions intensity of the grids from which electricity is consumed by the

Group), the resulting figures are: 57,825 MWh for 2024 (4.8% of total energy consumption), 57,636 MWh for the 2024 recast data (4.9%), and 59,581 MWh for 2025 (5.3%).

Consumption from Nuclear Sources

Focus Area


	2025	2024 Recast ^(a)	2024
Consumption^(b) from nuclear sources (MWh)	—	350.4	350.4
Share of consumption from nuclear sources in total energy consumption (%)	—	0.045	0.045

^(a)The 2024 Recast column reports figures recalculated after excluding Iveco Group's former Fire Fighting Business Unit.

^(b) Energy consumption from nuclear sources (and this figure as a percentage of total energy consumption), is calculated based on total electricity consumption and the markets from which

it is purchased. When using a location-based approach (used to calculate emissions based on the average emissions intensity of the grids from which electricity is consumed by the

Group), the resulting figures are: 49,762 MWh for 2024 (6.3% of total energy consumption), 49,709 MWh for the 2024 recast data (6.4%), and 51,536 MWh for 2025 (7%).

Iveco Group's energy intensity (Group-Wide) is calculated based on net revenues and corresponds to 77.55 MWh/€ million⁽⁵⁵⁾ (76.74 in 2024).

The underlying assumption is that all Iveco Group energy consumption relates to high climate impact sectors.

Focus Area Reporting 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.

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 CO2eq emissions per production unit do not take into account diesel or LPG consumption

from logistics or product testing.

Some of the 2024 figures were recalculated – and reported separately as recast data – to reflect the exclusion of Iveco Group's former Fire

Fighting Business Unit and enable comparability with the 2025 reporting perimeter.

Board Report Sustainability Statement 60

Group-Wide Reporting 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 94%) 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 additional data (6%) 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.

Some of the 2024 figures were recalculated – and reported separately as recast data – to reflect the exclusion of Iveco Group's former Fire

Fighting Business Unit and enable comparability with the 2025 reporting perimeter.

The 2019 base year figures (used for targets) were recalculated by adopting the same approach as for the 2024 figures to reflect the exclusion of

the Group's former Fire Fighting Business Unit.

Some of the 2024 figures were restated following a more detailed analysis of car fleet energy consumption, or because they were reassigned to a

different energy source. The 2024 restated Group-Wide figure for Fuel consumption from crude oil and petroleum products was 121,279 MWh

(against the 102,593 MWh reported prior to the restatement); all related figures (e.g., Scope 1 emissions and intensity ratios) were restated

accordingly.

3.5.2 Gross Scope 1, 2, 3 and total GHG emissions (E1-6)

Scope 1 and 2 Emissions

Group-Wide (tCO2 eq)


GHG emissions	2025	2024 Recast^(a)	2024
Gross Scope 1 GHG emissions	134,675	133,486	135,324
GHG emissions from regulated emission trading schemes (%)	2	n.a.	n.a.
Gross Scope 2 GHG emissions – location-based	101,417	108,620	110,435
Gross Scope 2 GHG emissions – market-based ^(a)	10,942	38,380	38,389
Total GHG emissions (Scope 1 & 2) – location-based	236,092	242,106	245,759
Total GHG emissions (Scope 1 & 2) – market-based	145,617	171,866	173,713

^(a)The 2024 Recast column reports figures recalculated after excluding Iveco Group's former Fire Fighting Business Unit.

(b) Guarantees of Origin or renewable energy certificates covered around 84% of purchased electricity within the Group-Wide scope in 2025.

Scope 1 and 2 Emissions

Focus Area(a) (tCO2eq)


GHG emissions	2025	2024 Recast^(b)	2024
Gross Scope 1 GHG emissions	67,375	70,314	71,215
GHG emissions from regulated emission trading schemes (%)	5	n.a.	n.a.
Gross Scope 2 GHG emissions – location-based	78,371	84,085	85,775
Gross Scope 2 GHG emissions – market-based ^(c)	1,827	3,508.0	3,508
Total GHG emissions (Scope 1 & 2) – location-based	145,746	154,399	156,990
Total GHG emissions (Scope 1 & 2) – market-based	69,202	73,822	74,723

(a) Emissions from diesel, LPG, and the car fleet are excluded.

^(b)The 2024 Recast column reports figures recalculated after excluding Iveco Group's former Fire Fighting Business Unit.

^(c) Guarantees of Origin or renewable energy certificates covered 100% of purchased electricity within the Focus Area scope in 2025.

Board Report Sustainability Statement 61

Scope 3 Emissions

Group-Wide (tCO2 eq)


Type of activity	Scope 3 emissions category^(a)	2025	2024
Upstream	1 - Purchased goods and services	3,874,768	3,968,982
	2 - Capital goods	—	—
	3 - Fuel- and energy-related activities (not included in Scope 1 or 2)	33,757	35,136
	4 - Upstream transportation and distribution	158,621	162,528
	5 - Waste generated in operations	—	—
	6 - Business travel	4,040	4,204
	7 - Employee commuting	39,196	32,184
	8 - Upstream leased assets	—	—
	Total upstream	4,110,382	4,203,034
Downstream	9 - Downstream transportation and distribution	—	—
	10 - Processing of sold products	—	—
	11 - Use of sold products^(b)	46,069,631	52,330,813
	12 - End-of-life treatment of sold products	363,280	415,386
	13 - Downstream leased assets	—	—
	14 - Franchises	n/a	n/a
	15 - Investments	—	—
	Total downstream	46,432,911	52,746,199
	Total Scope 3 emissions	50,543,293	56,949,233

^(a) Scope 3 emissions are calculated using both primary and secondary data. In 2025, approximately 50% of Scope 3 emissions were calculated using primary data.

^(b)The 2024 figures were recalculated to reflect the implementation of a revised methodology in South America and were disclosed in line with ESRS 1 paragraph 7.1. For additional

information, see the relevant 'Data Calculation Methodology' section.

Scope 1,2, and 3 Emissions

Group-Wide (tCO2eq)


GHG emissions	2025	2024 Recast^(a)	2024
Gross Scope 1 and 2 GHG emissions – location-based	236,092	242,106	245,759
Gross Scope 1 and 2 GHG emissions – market based	145,617	171,866	173,713
Gross Scope 3 GHG emissions	50,543,293	56,949,233	56,949,233
Total GHG emissions – location-based	50,779,385	57,191,339	57,194,992
Total GHG emissions – market-based	50,688,910	57,121,099	57,122,946
Total GHG emissions – location-based – per net revenue (€ million)^(b)	3,498	3,741	3,681
Total GHG emissions – market-based – per net revenue (€ million) ^(b)	3,492	3,736	3,676

^(a)The 2024 Recast column reports Scope 1 and Scope 2 figures recalculated after excluding Iveco Group's former Fire Fighting Business Unit.

^(b)The revenues used to calculate the intensity ratio include discontinued operations, except in the case of recast data.

Scope 1 Emissions – Data Calculation Methodology

Regardless of the reporting 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 those generated by fixed appliances or when recharging vehicles' on-board air-conditioning compressors using

HFC or HCFH refrigerants

Board Report Sustainability Statement 62

▪ emissions from internal transport operations carried out using vehicles that are either Group-owned or leased from third parties

▪ fire suppression equipment that uses, and can release, greenhouse gases (e.g., CO2eq, HFCs, F-gases)

▪ refrigerants

▪ direct methane (CH4) and nitrous oxide (N2O) 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 0.2%, they fall outside the reporting scope.

Fleet car emissions were estimated based on average fuel consumption data from a representative sample of vehicles.

Some of the 2024 figures were recalculated – and reported separately as recast data – to reflect the exclusion of Iveco Group's former Fire

Fighting Business Unit and enable comparability with the 2025 reporting perimeter.

The 2019 base year figures (used for targets) were recalculated by adopting the same approach as for the 2024 figures to reflect the exclusion of

the Group's former Fire Fighting Business Unit.

Some of the 2024 figures were restated following a more detailed analysis of car fleet energy emissions.

Scope 2 Emissions – Data Calculation Methodology

Regardless of the reporting 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 CO2eq emissions target set for the Focus Area refers to Scope 2 emissions calculated according to the market-based method.

Some of the 2024 figures were recalculated – and reported separately as recast data – to reflect the exclusion of Iveco Group's former Fire

Fighting Business Unit and enable comparability with the 2025 reporting perimeter.

The 2019 base year figures (used for targets) were recalculated by adopting the same approach as for the 2024 figures to reflect the exclusion of

the Group's former Fire Fighting Business Unit.

Scope 3 Category 1 Emissions (from Purchased Goods and Services) – Data Calculation Methodology

In 2025, calculation methodology accuracy for Scope 3 Category 1 emissions was enhanced by introducing a hybrid approach that prioritises

supplier‑specific emission factors (EFs) and uses spend‑based emission factors for the remaining categories.

Category 1 CO₂eq emissions were calculated using two complementary approaches: (i) supplier‑specific calculations, where EFs were disclosed

by the suppliers, and (ii) a residual spend‑based method using updated EXIOBASE monetary EFs. The formulas applied were:

▪ supplier‑specific approach: Emissions = quantity (tons) × EF (tCO₂eq/ton)

▪ spend‑based approach: Emissions = expenditure (€) × monetary EF (tCO₂eq/€).

The value of purchased goods and services corresponds to the 2025 Annual Purchase Value (APV), while monetary EFs were sourced from

EXIOBASE version 3.9.6, a detailed multi-regional, environmentally extended input-output (EEIO) database covering various economic sectors

and geographies.

The revised methodology improved accuracy by combining two calculation streams, incorporating multiple dimensions.

Board Report Sustainability Statement 63

The spend-based approach was used to map purchased goods and services to the most appropriate EXIOBASE activity categories, applying

region‑specific EFs by integrating the Country of Origin (COO) of purchased goods (i.e., the country where they were produced). This captures

regional energy mixes, thereby reflecting the heterogeneity of Iveco Group's global procurement. Furthermore, the spend-based methodology

increases granularity by assigning specific 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

relevant emission categories in EXIOBASE – resulting in a dual mapping approach that combines both material description and COO.

The methodology was then further refined by adjusting the EXIOBASE 2022 base year EFs to 2025 by incorporating inflation-adjusted values,

applying International Monetary Fund (IMF) inflation rates for each geographic region. In addition, EFs were adjusted to reflect projected

decarbonisation trends in the Organisation's sourcing countries, leveraging insights from the IEA's World Energy Outlook 2023. This ensures that

external factors influencing emissions are duly considered.

The supplier-specific approach, on the other hand, was used to calculate a portion of emissions limited to a subset of 2025's steel purchases. This

improves accuracy by moving beyond country‑level averages to supplier/plant‑specific values, better capturing process and technology

differences and reflecting decarbonisation at the plants of Iveco Group's suppliers.

This updated methodology produces more precise and tailored emission estimates by incorporating country‑specific manufacturing emissions and

customised EFs based on the characteristics of purchased goods. Results combine spend‑based calculations for the majority of purchases with

supplier‑specific calculations for a minority of steel emissions, reflecting steel's greater importance in the emissions profile and improving overall

accuracy while maintaining full coverage.

In 2025, the Group carried out a preliminary assessment of indirect material purchases to determine their relative contribution to Scope 3

Category 1 emissions. Although their impact was found to be limited – with their contribution accounting for less than 5% of the category's total

emissions – the Group intends to keep monitoring this data and evaluate its inclusion in future reporting cycles.

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.

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 CO2eq 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.

⁽⁵⁶⁾Data obtained from EcoTransIT considering average taxable weight per container.

⁽⁵⁷⁾Data obtained from EcoTransIT .

⁽⁵⁸⁾Data obtained from EcoTransIT .

Board Report Sustainability Statement 64

▪ 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⁽⁵⁶⁾ 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⁽⁵⁷⁾ 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 70-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.

▪ 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⁽⁵⁸⁾ 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 route. 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 4,300 journeys in 2025) 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 5 sites in Italy (employing approximately 12,300

employees, representing approximately 35% 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 or 11 were negligible compared to the total Scope

3 emissions.

⁽⁵⁹⁾ See GHG Protocol, Technical Guidance for Calculating Scope 3 Emissions.

⁽⁶⁰⁾See Scope 3 category 11 of the GHG Protocol.

⁽⁶¹⁾ Click here for more information on the Vehicle Energy Consumption Calculation Tool (VECTO).

⁽⁶²⁾ 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).

Board Report Sustainability Statement 65

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⁽⁵⁹⁾ using the formula: CO2eq emissions = Σ (mass of sold

intermediate product (number of engines) × emission factor of processing of sold products (kgCO2eq/engine)). Most of Iveco Group's

products are ready for use when they leave its production sites. A proportion of FPT 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⁽⁶⁰⁾ 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.

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⁽⁶¹⁾, 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⁽⁶²⁾, 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 also calculated according to a well-to-wheel approach, by location and by vehicle type. Tank-to-wheel

emissions were calculated as CO2eq emissions = Σ (number of vehicles manufactured x average annual mileage (km/year) x gCO2/km), where

mileage was based on historical maintenance agreements and CO2/km was based on recognised product tests and consumption efficiency

analysis. Well-to-tank emissions were calculated using the same accredited sources and weighted fuel-type factors described above. Total annual

CO2 emissions, on the other hand, were calculated by applying a 7- to 10-year lifetime estimate to the well-to-wheel emissions from vehicles

manufactured during the year, with average consumption values and emission factors varying according to the fuel used (diesel, natural gas or

biomethane). The above approach was implemented in South America for the first time in 2025, to ensure consistency with the methodology

applied in Europe. As a result, the 2024 data was recalculated accordingly. The 2024 recalculated figure was 52,330,812.9 CO2eq (against the

60,357,066.9 CO2eq) reported prior to the restatement.

Specialty vehicles were not included in any calculations.

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

Board Report Sustainability Statement 66

▪ 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 2025, Brand FPT continued to offset the GHG emissions generated by its Turin Testing Centre (Italy), in pursuit of becoming a zero-impact

testing facility. Around 8,850 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.

3.5.4 Internal carbon pricing (E1-8)

Own Operations

The Group is evaluating approaches to extend and improve the application of the internal carbon pricing (ICP) methodology, a strategic business

tool for guiding investments to reduce CO2 emissions. It should be noted that, in 2025, all identified projects received funding; therefore, the ICP

did not lead to any project exclusions and was used solely for ranking projects in order of priority.

Projects are prioritised based on their ICP, favouring those that achieve greater emission reductions per euro invested.

In 2025, the methodology was applied to 26 projects to assist in the prioritisation of investments. Projects were ranked based on their calculated

ICP values, and those with the lowest ICP were given precedence. The ICP was calculated as project investment per ton of estimated

greenhouse gas emissions avoided over a 10-year project lifetime (€ invested / (tCO₂eq avoided x 10 years)). As the necessary financial

resources were available, all identified projects were implemented during the year. The ICP values applied averaged €70 per ton of CO2eq

emissions avoided per year.

Some of the projects implemented in 2025 and their associated ICP values are described below:

▪ installation and aeraulic adjustment of a fresh-air ventilation fan serving a PVC curing oven, including inverter-based control and airflow setpoint

regulation (€17/tCO₂eq/year)

▪ replacement of an old burner with a new high-efficiency unit within the paint curing process (€95/tCO₂eq/year)

▪ replacement of a cataphoresis chiller with a heat pump to recover and supply both heating and cooling for industrial processes (€99/tCO₂eq/

year).

These examples reflect the Group's commitment to decarbonisation, pursuing emissions reductions even beyond strictly economic criteria.

Supply chain

Iveco Group is advancing the implementation of internal carbon pricing (ICP) beyond its internal operations to progressively encompass the

supply chain, embedding carbon considerations into procurement and sourcing decisions.

Within this framework, particular focus is placed on carbon-intensive materials, such as steel, and on the introduction of incentive mechanisms

that recognise and reward the procurement of low-emission steel products through ICP. By internalising the cost of carbon and reflecting it in

purchasing decisions, the Group aims to establish a clear price signal that drives supplier engagement, encourages technological innovation, and

accelerates the transition toward lower-carbon supply chains.

⁽⁶³⁾ Principle 15 of the Rio Declaration on Environment and Development, approved by the United Nations in 1992.

⁽⁶⁴⁾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.

⁽⁶⁵⁾ 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 67

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⁽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 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⁽⁶⁴⁾(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)⁽⁶⁵⁾emissions, painting has the greatest environmental impact of all manufacturing processes at Iveco

Group. Emissions of nitrogen oxides (NOX), sulphur oxides (SOX), 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.

⁽⁶⁶⁾The base year (2019) VOC emissions are equal to 38.3 g/m². The base year data was recalculated to reflect the change in reporting scope resulting from the sale of the Group's

firefighting business. 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 68

The plant in Valladolid (Spain) installed a new FlyDry system – an automatic drying robot – in its assembly finishing area, replacing its previous

infrared equipment. The new system uses catalytic infrared lamps that enable instant paint curing with precise temperature control, ensuring

thorough drying. This €130,000 investment led to a reduction in VOC emissions, owing to the high-solid 2K paint required by the new system. The

upgrade also delivered energy savings while improving both product quality and operational efficiency.

4.3.2 Our products

Iveco Group has a dual strategy for reducing its emissions: one is to develop advanced solutions to minimise pollutants from conventional fuel

combustion – specifically, nitrous oxides (NOX) and particulate matter (PM) – the other is to make its powertrains compatible with renewable fuels,

thereby cutting CO2 emissions.

In terms of minimising air pollutants, Brand FPT'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 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's

SCR technology, first introduced in 2005, has been continually upgraded through the years, including by leveraging the cross-fertilisation of on-

highway and off-highway 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's SCR systems are currently used in on- and off-highway and

power generation applications and feature in more than 75% of the diesel engines produced by the Brand as at year-end 2025.

Regarding carbon-free fuels such as hydrogen, Iveco Group has continued to develop its XCURSOR 13 engine platform, centred on a hydrogen

direct injection system to maximise combustion efficiency. The platform, launched in 2022, is FPT's first multi-fuel single-base engine designed to

run on diesel or methane, with hydrogen planned for the future. Conceived to be compatible with a wide range of market requirements, the engine

is especially relevant in Europe where hydrogen internal combustion engine (H2-ICE) technologies are considered complementary to both battery

electric vehicles (BEV) and fuel cell electric vehicles (FCEV) in achieving the ultimate goal of zero emission vehicles (ZEV). As regards powertrain

compatibility with renewable fuels (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 is also conducting trials

on engines capable of running on 100% bioethanol, a renewable biofuel widely used in countries such as Brazil.

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. 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. For more information, see 10.3 Engaging End Users on Impacts in this Sustainability Statement.

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 its 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⁽⁶⁶⁾). In 2025, within the scope of the Focus Area, Iveco Group achieved a 32.8% decrease in VOC emissions (compared to the

2019 base year). For further details on:

▪ the target definition process

▪ stakeholder involvement in target setting

▪ the 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 plant-level activities that may pose a threat to the

environment.

Board Report Sustainability Statement 69

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 already 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 for air pollution, the main data and indicators are provided in the following tables.

Volatile Organic Compounds (VOC) Emissions

Group-Wide


	2025	2024 Recast^(a)	2024
Average VOC emissions (g/m²)	25.7	27.1	27.2
Total VOC emissions (tons)	670.9	688.7	691.4

^(a)The 2024 Recast column reports figures recalculated after excluding Iveco Group's former Fire Fighting Business Unit.

Volatile Organic Compounds (VOC) Emissions^(a)

Focus Area


	2025	2024 Recast^(b)	2024
Average VOC emissions (g/m²)	25.7	27.1	27.2
Total VOC emissions (tons)	670.4	688.6	691.3

^(a) The base year (2019) VOC emissions are equal to 38.3 g/m². The base year data was recalculated to reflect the change in reporting scope resulting from the sale of the Group's

firefighting business. 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) The 2024 Recast column reports figures recalculated after excluding Iveco Group's former Fire Fighting Business Unit.

NOX, SOX, and Dust Emissions

Group-Wide (tons)


	2025	2024 Recast^(a)	2024
Nitrogen oxides (NOX)	278.5	284.6	287.9
Sulphur oxides (SOX)	41.5	32.6	33.2
Dust	3.6	2.8	2.9

^(a) The 2024 Recast column reports figures recalculated after excluding Iveco Group's former Fire Fighting Business Unit.

Board Report Sustainability Statement 70

NOX, SOX, and Dust Emissions

Focus Area (tons)


	2025	2024 Recast^(a)	2024
Nitrogen oxides (NOX)	178.9	186.6	189.2
Sulphur oxides (SOX)	18.6	17.2	17.6
Dust	1.6	1.5	1.5

^(a) The 2024 Recast column reports figures recalculated after excluding Iveco Group's former Fire Fighting Business Unit.

Data Calculation Methodology

NOX, SOX, and dust emissions were 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 93%) 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 additional data (7%) 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 were 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 ESGeoor similar systems) for each site based on their respective

qualitative and quantitative data.

The 2024 figures were recalculated – and reported separately as recast data – to reflect the exclusion of Iveco Group's former Fire Fighting

Business Unit and enable comparability with the 2025 reporting perimeter.

The 2019 base year figures (used for targets) were recalculated adopting the same approach as for the 2024 figures.

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.

⁽⁶⁷⁾ Principle 15 of the Rio Declaration on Environment and Development, approved by the United Nations in 1992.

⁽⁶⁸⁾For the complete list of plants, see 1.1 General Basis for the Preparation of the Sustainability Statement.

Board Report Sustainability Statement 71

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⁽⁶⁷⁾. 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 world

population and the resulting increase in water demand, 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 related challenges 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 of innovation and improvement 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 consumption and wastewater volumes without compromising quality standards.

The Organisation's approach to water management focuses on increasing the use of recycled water to reduce withdrawals from external sources,

thus improving water independence while increasing water availability for local communities. From a broader perspective, given that water is a

shared resource, the Group recognises the importance of collaborating 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 20 of the Group's ISO 14001 certified plants within the scope of the Focus Area⁽⁶⁸⁾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.

⁽⁶⁹⁾ 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).

⁽⁷⁰⁾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.

⁽⁷¹⁾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.

⁽⁷²⁾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.

⁽⁷³⁾ World Resources Institute.

⁽⁷⁴⁾ 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.

⁽⁷⁵⁾ The base year (2019) water withdrawal is equal to 0.110 m³/hour of production. The base year data was recalculated to reflect the change in reporting scope resulting from the sale of

the Group's firefighting business. 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 72

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 2025, the Group carried out several initiatives to obtain a detailed picture of water consumption at plant level and reduce its plants' water

footprint, thereby generating annual cost savings. In Europe, the plants in Suzzara and Turin (Italy) conducted a water balance analysis that led to

several improvements being made to the water distribution network, including the installation of new water meters and the detection and repair of

leaks. The Suzzara plant also invested €48,600 to install a multi-step filtration and ultrafiltration system for water reuse at its rain test facility,

increasing the water recycling index and reducing primary water withdrawal by approximately 480 cubic metres. Meanwhile, the plant in Valladolid

(Spain) improved the performance of its water demineralised system by 40% by replacing its ion exchange resins, which has reduced the

frequency of regeneration cycles along with the associated rinsing-water requirements. This investment of €20,700 is expected to cut water

consumption by approximately 140,000 cubic metres annually. In South America, the Defence plant in Sete Lagoas (Brazil) replaced water piping,

previously underground, with an above-ground configuration across the entire network. For a total investment of approximately €4,100, this

structural change facilitates frequent visual inspections of all piping, supporting preventive and corrective maintenance as well as the prompt

detection of potential leaks.

In addition to implementing ad hoc initiatives to promote responsible water withdrawal, 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)⁽⁶⁹⁾, chemical

oxygen demand (COD)⁽⁷⁰⁾, and total suspended solids (TSS)⁽⁷¹⁾ – showed that its performance in 2025 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⁽⁷²⁾): the plant in Brescia and the two in Foggia (all in Italy) and the plants in Madrid and Valladolid (Spain). They

were identified using the WRI⁽⁷³⁾ 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⁽⁷⁴⁾ at Group plants worldwide (Focus Area) by year-end 2026 (compared to 2019⁽⁷⁵⁾)

⁽⁷⁶⁾ The base year (2019) water withdrawal is equal to 0.257 m³/hour of production.

⁽⁷⁷⁾ The base year (2019) water withdrawal is equal to 0.080 m³/hour of production.

⁽⁷⁸⁾The base year (2019) water withdrawal is equal to 0.036 m³/hour of production.

⁽⁷⁹⁾ The base year (2019) water withdrawal is equal to 0.087 m³/hour of production.

Board Report Sustainability Statement 73

▪ a 10% reduction in water withdrawal per production unit at the plant in Brescia (Italy) by year-end 2026 (compared to 2019⁽⁷⁶⁾)

▪ a 5% reduction in water withdrawal per production unitat the Powertrain plant in Foggia (Italy) by year-end 2026 (compared to 2019⁽⁷⁷⁾)

▪ a 22% reduction in water withdrawal per production unit at the plant in Madrid (Spain) by year-end 2026 (compared to 2019⁽⁷⁸⁾)

▪ a 10% reduction in water withdrawal per production unit at the plant in Valladolid (Spain) by year-end 2026 (compared to 2019⁽⁷⁹⁾).

In 2025, within the scope of the Focus Area, the Organisation recycled 76.9% of its industrial water and reduced its total water withdrawal per

production unit by 17.3% 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 plant situations or activities that may

pose a threat to the environment. For further details on:

▪ the target definition process

▪ stakeholder involvement in target setting

▪ the 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 for water consumption, the main data and indicators are provided in the following tables.

Water Withdrawal^(a) per Production Unit

Focus Area (m³/hour of production^(b))


	2025	2024 Recast^(c)	2024
Water withdrawal	0.091	0.094	0.093

^(a) The base year (2019) water withdrawal is equal to 0.110 m³/hour of production. The base year data was recalculated to reflect the change in reporting scope resulting from the sale of

the Group's firefighting business. 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.

^(c) The 2024 Recast column reports figures recalculated after excluding Iveco Group's former Fire Fighting Business Unit.

Water Storage

Group-Wide (thousands of m³)


	2025	2024 Recast^(a)	2024
Water stored	29	30	30
Changes in water storage	(1)	—	—

^(a)The 2024 Recast column reports figures recalculated after excluding Iveco Group's former Fire Fighting Business Unit.

Water Storage

Focus Area (thousands of m³)


	2025	2024 Recast^(a)	2024
Water stored	27	28	28
Changes in water storage	(1)	—	—

^(a)The 2024 Recast column reports figures recalculated after excluding Iveco Group's former Fire Fighting Business Unit.

Board Report Sustainability Statement 74

Water Intensity^(a)

Group-Wide (m³/€ million)


	2025	2024 Recast^(b)	2024
Water intensity	173.1	146.9	147.5

^(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). The revenues used to

calculate the intensity ratio include discontinued operations, except in the case of recast data.

^(b) The 2024 Recast column reports figures recalculated after excluding Iveco Group's former Fire Fighting Business Unit.

Water Intensity^(a)

Focus Area (m³/€ million)


	2025	2024 Recast^(b)	2024
Water intensity	89.6	77.5	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). The revenues used to

calculate the intensity ratio include discontinued operations, except in the case of recast data.

^(b) The 2024 Recast column reports figures recalculated after excluding Iveco Group's former Fire Fighting Business Unit.

Water Withdrawal, Discharge, and Consumption

Group-Wide (thousands of m³)


	2025		2024 Recast^(a)		2024
	All areas	of which in water- stressed areas ^(b)	All areas	of which in water- stressed areas ^(b)	All areas	of which in water- stressed areas ^(b)
Withdrawal
Groundwater	3,509	382	3,489	419	3,523	437
Third-party water	1,145	341	1,106	342	1,147	343
of which municipal water supply	1,145	341	1,106	342	1,147	343
Surface water	14	—	15	—	15	—
of which rainwater	3	—	5	—	5	—
Seawater	—	—	—	—	—	—
Produced water	—	—	—	—	—	—
Total water withdrawal	4,668	723^(c)	4,610	761	4,685	780
Discharge
Surface water	344	102	408	120	409	122
Third-party water	1,805	260	1,954	246	1,982	246
Seawater	—	—	—	—	—	—
Groundwater	6	—	2	—	2	—
Total water discharge	2,155	362	2,364	366	2,393	368
Consumption
Total water consumption ^(d)	2,513	361	2,246	395	2,292	412

^(a) The 2024 Recast column reports figures recalculated after excluding Iveco Group's former Fire Fighting Business Unit.

^(b)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. The analysis considers only

manufacturing sites.

^(c)The total water withdrawal in water-stressed areas corresponds to 15% of the Group's total water withdrawal.

^(d)Calculated as total water withdrawal minus total water discharge.

Board Report Sustainability Statement 75

Water Withdrawal, Discharge, and Consumption

Focus Area (thousands of m³)


	2025	2024 Recast^(a)	2024
Withdrawal
Groundwater	1,824	1,878	1,906
Third-party water	865	846	877
of which municipal water supply	865	846	877
Surface water	11	10	10
of which rainwater	—	—	—
Seawater	—	—	—
Produced water	—	—	—
Total water withdrawal	2,700	2,734	2,793
Discharge
Surface water	341	408	409
Third-party water	1,053	1,141	1,175
Seawater	—	—	—
Groundwater	5	—	—
Total water discharge	1,399	1,549	1,584
Consumption
Total water consumption ^(b)	1,301	1,185	1,209

^(a)The 2024 Recast column reports figures recalculated after excluding Iveco Group's former Fire Fighting Business Unit.

^(b)Calculated as total water withdrawal minus total water discharge.

Water Recycling^(a) Index

Group-Wide (thousands of m ³)


	2025	2024 Recast^(b)	2024
Total water requirement	12,376	11,348	11,423
of which covered by recycling	7,708	6,738	6,738
of which water withdrawal	4,668	4,610	4,685
Water recycling index ^(c) (%)	62.3	59.4	59.0

^(a)Water recycling includes water reused.

^(b) The 2024 Recast column reports figures recalculated after excluding Iveco Group's former Fire Fighting Business Unit.

^(c) The recycling index is calculated as a percentage of the total water requirement.

Water Recycling^(a) Index

Focus Area (thousands of m³)


	2025	2024 Recast^(b)	2024
Total water requirement	10,027	9,439	9,499
of which covered by recycling	7,327	6,705	6,706
of which water withdrawal	2,700	2,734	2,793
Water recycling index ^(c) (%)	73.1	71.0	70.6

^(a)Water recycling includes water reused.

^(b)The 2024 Recast column reports figures recalculated after excluding Iveco Group's former Fire Fighting Business Unit.

^(c) The recycling index is calculated as a percentage of the total water requirement.

Board Report Sustainability Statement 76

Industrial Water Recycling^(a)Index

Group-Wide (thousands of m³)


	2025	2024 Recast^(b)	2024
Industrial water requirement	11,638	10,629	10,647
of which covered by recycling	7,708	6,738	6,738
of which water withdrawal	3,930	3,891	3,909
Industrial water recycling index ^(c)(%)	66.2	63.4	63.3

^(a)Industrial water recycling includes industrial water reused.

^(b)The 2024 Recast column reports figures recalculated after excluding Iveco Group's former Fire Fighting Business Unit.

^(c) The industrial water recycling index is calculated as a percentage of the total industrial water requirement.

Industrial Water Recycling^(a)Index

Focus Area (thousands of m³)


	2025	2024 Recast^(b)	2024
Industrial water requirement	9,533	8,958	8,977
of which covered by recycling	7,327	6,705	6,705
of which water withdrawal	2,206	2,253	2,272
Industrial water recycling index ^(c)(%)	76.9	74.9	74.7

^(a)Industrial water recycling includes industrial water reused.

^(b)The 2024 Recast column reports figures recalculated after excluding Iveco Group's former Fire Fighting Business Unit.

^(c) The industrial water recycling index is calculated as a percentage of the total industrial water requirement.

Plants Located in Water-Stressed Areas^(a)

Group-Wide


Plant (Country)	2025 Discharge water quality (mg/l)	2019 Water withdrawal per production unit (m ³/hour of production ^(b))	2025 Water withdrawal per production unit (m ³/hour of production ^(b))	Reduction target ^(c) (2026 vs 2019 ^(d))
Brescia (Italy)	BOD: 20 COD: 33 TSS: 7	0.257	0.229	-10%
Foggia Powertrain (Italy)	BOD: 43 COD: 154 TSS: 123	0.080	0.095	-5%
Foggia Bus (Italy)	BOD: 43 COD: 154 TSS: 123	n/a^(e)	0.025	n/a^(e)
Madrid (Spain)	BOD: 60 COD: 174 TSS: 49	0.036	0.015	-22%
Valladolid (Spain)	BOD: 70 COD: 109 TSS: 34	0.087	0.091	-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

Group-Wide (milligram/litre)


	2025	2024 Recast^(a)	2024
Biochemical oxygen demand (BOD)	66.9	59.4	59.4
Chemical oxygen demand (COD)	175.3	179.3	179.3
Total suspended solids (TSS)	78.9	60.2	60.2

^(a)The 2024 Recast column reports figures recalculated after excluding Iveco Group's former Fire Fighting Business Unit.

Board Report Sustainability Statement 77

Quality of Water Discharges

Focus Area (milligram/litre)


	2025	2024 Recast^(a)	2024
Biochemical oxygen demand (BOD)	67.0	59.5	59.5
Chemical oxygen demand (COD)	175.5	196.1	196.1
Total suspended solids (TSS)	79.2	60.5	60.5

^(a)The 2024 Recast column reports figures recalculated after excluding Iveco Group's former Fire Fighting Business Unit.

Data Calculation Methodology

The Group-Wide reporting scope includes all water withdrawals by both manufacturing and non-manufacturing sites. The Focus Area reporting

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 99%) 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 additional data (1%) 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 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.

Environmental data was compiled individually (using ESGeo 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.

The 2024 figures were recalculated – and reported separately as recast data – to reflect the exclusion of Iveco Group's former Fire Fighting

Business Unit and enable comparability with the 2025 reporting perimeter.

The 2019 base year figures (used for targets) were recalculated adopting the same approach as for the 2024 figures.

⁽⁸⁰⁾ Principle 15 of the Rio Declaration on Environment and Development, approved by the United Nations in 1992.

Board Report Sustainability Statement 78

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⁽⁸⁰⁾. 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.

⁽⁸¹⁾Registration, Evaluation, Authorisation, and Restriction of Chemicals.

⁽⁸²⁾ Persistent Organic Pollutants.

⁽⁸³⁾Restriction of Hazardous Substances.

Board Report Sustainability Statement 79

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 Focus Area reporting scope 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

▪ the 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 2025, 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⁽⁸¹⁾ Regulation No. 1907/2006 and POP⁽⁸²⁾ Regulation No. 2019/1021 for vehicles and components; EU RoHS⁽⁸³⁾

Directive No. 2011/65 for generators; and Directive 2005/64/EC for vehicle reuse, recycling, and recovery.

Board Report Sustainability Statement 80

Main Materials Used


	2025			2024
Technical raw materials	Thousand tons	of which recycled (%)	of which certified / sustainably sourced (%)	Thousand tons	of which recycled (%)	of which certified / sustainably sourced (%)
Steel	570.0	0.4	n.a.	521.2	0.4	n.a.
Iron	309.0	5.8	n.a.	313.7	5.8	n.a.
Plastics	55.0	0.1	n.a.	60.0	0.1	n.a.
Aluminium	42.0	2.8	n.a.	41.3	2.8	n.a.
Cobalt	0.2	—	n.a.	0.1	—	n.a.
Copper	6.7	1.2	n.a.	6.2	1.2	n.a.
Nickel	2.5	—	n.a.	1.5	—	n.a.
Lithium	0.5	—	n.a.	0.3	—	n.a.
Fluids	12.0	—	n.a.	11.7	—	n.a.
Total	997.9			956.0
Biological raw materials ^(a)
Rubber ^(b) (natural and synthetic contents)	35.0	n.a.	n.a.	38.3	n.a.	n.a.
Paper^(c) (office use)	0.2	n.a.	74.0	0.2	n.a.	74.0
Cardboard	0.3	31.0	—	0.6	46.0	—
Wood	4.7	—	37.0	10.4	—	19.0
Total	40.2			49.5

^(a) Biofuels are not relevant for the manufacture of Group products.

^(b)The natural rubber content varies by supplier, typically ranging between 20% and 40%.

^(c)Forest Stewardship Council (FSC^®) certified.

Data Calculation Methodology

Data related to raw materials was calculated based on the analysis of sourcing and category management, 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 18 spare 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®-certified.

⁽⁸⁴⁾ 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.

⁽⁸⁵⁾ The base year (2019) waste generated is equal to 2.715 kg/hour of production. The base year data was recalculated to reflect the change in reporting scope resulting from the sale of

the Group's firefighting business. For information on the rationale for choosing 2019 as the base year, see 1.1 General Basis for the Preparation of the Sustainability Statement.

⁽⁸⁶⁾ 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.

⁽⁸⁷⁾ The base year (2019) hazardous waste generated is equal to 0.234 kg/hour of production. The base year data was recalculated to reflect the change in reporting scope resulting from

the sale of the Group's firefighting business. 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 81

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. Manufacturing processes at plants normally involve numerous input materials – from raw

resources such as metals to plastics, chemical products, and components – each with its own packaging and each generating actual and/or

potential waste-related impacts. This applies to most manufacturing activities, including assembly, machining, painting, welding, testing, and

logistics. 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 systematically analyse their production chains to identify opportunities for improvement,

particularly seeking solutions that increase waste recovery and reuse and thereby minimise the amount of material sent to landfill. They also set

up action plans and allocate dedicated R&D resources to reduce waste generation and limit 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 2025, 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. In France, the

Rorthais plant invested a total of €67,600 to replace disposable packaging with returnable alternatives, reducing its cardboard and plastic waste

by approximately 7 tons. To reduce hazardous waste generation, the plant in Madrid (Spain) installed a new system to reuse water from the paint

pit by storing it in tanks during the summer shutdown and treating it with compressed air and biocides. For a total investment of €6,000, the

initiative prevented the disposal of 160 tons of hazardous waste while reducing the associated annual costs.

Iveco Group's voluntary commitment to managing resource outflows (including waste) is reflected in the following sustainability targets included in

its Sustainability Plan and that apply to the Focus Area reporting scope 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⁽⁸⁴⁾ at Group plants worldwide (Focus Area) by year-end 2026 (compared to 2019⁽⁸⁵⁾)

▪ a 6% reduction in hazardous waste generated per production unit⁽⁸⁶⁾ at Group plants worldwide (Focus Area) by year-end 2026 (compared to

2019⁽⁸⁷⁾).

In 2025, Iveco Group achieved the following results within the scope of the Focus Area:

▪ 97% of waste recovered at Group plants worldwide

▪ a 21.7% reduction in waste generated per production unit at Group plants worldwide (compared to 2019)

▪ a 31.8% reduction in hazardous waste generated per production unit at Group plants worldwide (compared to 2019).

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

plants that may pose a threat to the environment. For further details on:

▪ the target definition process

▪ stakeholder involvement in target setting

▪ the 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 for waste, the main data and indicators are provided in the following tables.

Board Report Sustainability Statement 82

Waste and Hazardous Waste Generated^(a) per Production Unit

Focus Area (kg/hour of production^(b))


	2025	2024 Recast^(c)	2024
Waste generated	2.13	2.31	2.28
Hazardous waste generated	0.16	0.18	0.19

^(a) The base year (2019) waste generated is equal to 2.715 kg/hour of production. The base year (2019) hazardous waste generated is equal to 0.234 kg/hour of production. The base year

data was recalculated to reflect the change in reporting scope resulting from the sale of the Group's firefighting business. 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.

^(c) The 2024 Recast column reports figures recalculated after excluding Iveco Group's former Fire Fighting Business Unit.

Waste Generated, Diverted, and Directed to Disposal

Group-Wide (tons)


	2025	2024 Recast^(a)	2024
Waste generated, by composition
Hazardous waste	6,667	7,823	8,204
Non-hazardous waste^(b)	81,829	82,769	83,776
Total waste generated	88,496	90,592	91,980
of which packaging	45,722	36,993	37,425
Waste diverted from disposal, by recovery operation
Hazardous waste
Preparation for reuse	—	—	—
Recycling	3,506	4,896	5,265
Other recovery operations	—	—	—
Total hazardous waste diverted from disposal	3,506	4,896	5,265
Non-hazardous waste
Preparation for reuse	—	—	—
Recycling	70,616	72,588	73,496
Other recovery operations	—	—	—
Total non-hazardous waste diverted from disposal	70,616	72,588	73,496
Total waste diverted from disposal	74,122	77,484	78,761
Waste directed to disposal, by disposal operation
Hazardous waste
Incineration (with energy recovery)	1,741	1,702	1,712
Incineration (without energy recovery)	21	28	28
Landfill	10	19	20
Other disposal operations (treatment)	1,389	1,178	1,179
Total hazardous waste directed to disposal	3,161	2,927	2,939
Non-hazardous waste
Incineration (with energy recovery)	5,877	5,388	5,467
Incineration (without energy recovery)	2,132	1,867	1,865
Landfill	2,568	2,416	2,415
Other disposal operations (treatment)	636	510	533
Total non-hazardous waste directed to disposal	11,213	10,181	10,280
Total waste directed to disposal	14,374	13,108	13,219

^(a) The 2024 Recast column reports figures recalculated after excluding Iveco Group's former Fire Fighting Business Unit.

^(b)The Group does not generate radioactive waste.

Board Report Sustainability Statement 83

Waste Generated, Diverted, and Directed to Disposal

Focus Area (tons)


	2025	2024 Recast^(a)	2024
Waste generated, by composition
Hazardous waste	4,720	5,263	5,608
Non-hazardous waste^(b)	58,191	62,008	63,031
Total waste generated	62,911	67,271	68,639
of which packaging	30,375	29,573	30,099
Waste diverted from disposal, by recovery operation
Hazardous waste
Preparation for reuse	—	—	—
Recycling	2,543	3,281	3,614
Other recovery operations	—	—	—
Total hazardous waste diverted from disposal	2,543	3,281	3,614
Non-hazardous waste
Preparation for reuse	—	—	—
Recycling	52,728	57,147	58,078
Other recovery operations	—	—	—
Total non-hazardous waste diverted from disposal	52,728	57,147	58,078
Total waste diverted from disposal	55,271	60,428	61,692
Waste directed to disposal, by disposal operation
Hazardous waste
Incineration (with energy recovery)	1,144	1,096	1,108
Incineration (without energy recovery)	12	7	7
Landfill	3	4	4
Other disposal operations (treatment)	1,018	875	875
Total hazardous waste directed to disposal	2,177	1,982	1,994
Non-hazardous waste
Incineration (with energy recovery)	4,634	4,058	4,150
Incineration (without energy recovery)	45	40	40
Landfill	645	616	616
Other disposal operations (treatment)	139	147	147
Total non-hazardous waste directed to disposal	5,463	4,861	4,953
Total waste directed to disposal	7,640	6,843	6,947

^(a) The 2024 Recast column reports figures recalculated after excluding Iveco Group's former Fire Fighting Business Unit.

^(b)The Group does not generate radioactive waste.

Waste Recovered^(a), Waste Sent to Landfill, and Non-Recycled Waste

Group-Wide


	2025	2024 Recast^(b)	2024
Waste recovered (%)	92.4	93.4	93.4
Waste recovered (tons)	81,740	84,574	85,940
Waste sent to landfill (%)	2.9	2.7	2.6
Non-recycled waste (%)	16.2	14.5	14.4
Non-recycled waste (tons)	14,374	13,108	13,219

^(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.

^(b)The 2024 Recast column reports figures recalculated after excluding Iveco Group's former Fire Fighting Business Unit.

Board Report Sustainability Statement 84

Waste Recovered^(a), Waste Sent to Landfill, and Non-Recycled Waste

Focus Area


	2025	2024 Recast^(b)	2024
Waste recovered (%)	97.0	97.5	97.5
Waste recovered (tons)	61,048	65,581	66,950
Waste sent to landfill (%)	1.0	0.9	0.9
Non-recycled waste (%)	12.1	10.2	10.1
Non-recycled waste (tons)	7,640	6,843	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.

^(b) The 2024 Recast column reports figures recalculated after excluding Iveco Group's former Fire Fighting Business Unit.

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 reporting

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 additional 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 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.

Environmental data was compiled individually (using ESGeo or similar systems) for each site based on their respective qualitative and quantitative

data.

The 2024 figures were recalculated – and reported separately as recast data – to reflect the exclusion of Iveco Group's former Fire Fighting

Business Unit and enable comparability with the 2025 reporting perimeter.

The 2019 base year figures (used for targets) were recalculated adopting the same approach as for the 2024 figures.

Board Report Sustainability Statement 85

7. OWN WORKFORCE (S1)

7.1 APPROACH TO THE SUSTAINABILITY MATTER (SBM-2; SBM-3)

The Iveco Group materiality assessment identified Working conditions and human rights of own workforce and Wellbeing, inclusion, and

development of own workforce as material sustainability matters, linked to the ESRS S1 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 'Gender equality and equal pay for work of equal value', 'Training and skills development',

'Employment and inclusion of persons with disabilities', 'Measures against violence and harassment in the workplace', and 'Diversity')

▪ 'Other work-related rights' (including 'Child labour', 'Forced labour', and 'Privacy').

The expected short-term impacts related to Working conditions and human rights of own workforce were identified as negative and described by

stakeholders as follows: “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”; “Failure to

comply with safety standards causes critical incidents, injuries, and work-related ill health involving Iveco Group employees”; “The violation of

fundamental labour rights (e.g., child labour, forced labour) jeopardises employee access to basic life necessities and freedoms (e.g., education,

livelihood)”; and “The leakage of personal, confidential and/or sensitive information compromises employee privacy”.

Meanwhile, the expected short-term impacts related to Wellbeing, inclusion, and development of own workforce were mostly identified as positive

and described by stakeholders as follows: “The offering of awareness and upskilling programmes positively contributes to employees' professional

growth and career development”; “The offering of appropriate welfare and wellbeing programmes contributes to employee work-life balance and

satisfaction”; and “The development of an inclusive working environment where people are treated equally improves work-life quality, and makes

employees feel valued and free to fulfil their professional potential”. The one short-term impact identified as negative was described by

stakeholders as follows: “Discrimination and harassment in the workplace, including unfair recruiting and compensation practices, affect

employees, especially those who may be particularly vulnerable and/or marginalised (e.g., women, migrants, people with disabilities)”.

For more information, see 1.9 Identifying and Assessing Material Impacts, Risks, and Opportunities in this Sustainability Statement.

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 Stakeholder 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 third-party

companies. For the purposes of its double materiality assessment, Iveco Group treated all said workers as part of its workforce when identifying

the material impacts and risks most relevant to its people.

The potential negative impacts on 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 the relevant

sections of this Sustainability Statement. Negative impacts can affect Iveco Group's performance and positioning, since the potential occurrence

of serious injuries is recognised as a significant risk that could harm workers and lead to legal and regulatory consequences as well as

reputational damage.

So far, the climate transition plan has not had any material impacts on the workforce. However, as the industry moves towards electrification, new

workforce requirements are emerging, with a growing demand for a more specialised skill set. This shift 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 the strategies needed to support a smooth and inclusive

transition.

Board Report Sustainability Statement 86

The Group monitors its operations through an impact assessment survey, which particularly focuses on respect for human rights, especially

relating to child and forced labour (see 7.14.1 Human Rights Assessment).

The 2025 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

The Organisation endeavours to create long-term sustainable value for all its stakeholders, an objective that it believes cannot be achieved

without respect for fundamental human rights. Iveco Group's Human Rights Policy supports it 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, to ensure favourable working conditions, and to enhance their

wellbeing and satisfaction levels, while fundamental labour rights violations jeopardise 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

▪ 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).

Board Report Sustainability Statement 87

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 ESGeo 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).

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. Iveco Group's Diversity, Equity & Inclusion (DEI) Policy supports it 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'. The Organisation 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 quality of work life, and empowers 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.

Board Report Sustainability Statement 88

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. Iveco Group is committed to providing adequate

training to employees on privacy and data protection, and to investigating and imposing sanctions on any misconduct.

In this context, the Group also prioritises the confidentiality of employees' data, recognising that “the leakage of personal, confidential and/or

sensitive information compromises employee privacy”, as underlined by stakeholders during the materiality assessment when identifying material

impacts and risks. For information on the measures in place in this regard, see the 'Data Protection and Privacy' and 'Information Security'

sections in this Annual Report.

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).

7.2.5 Information Security Policy

The Iveco Group Information Security 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 defines the criteria and

responsibilities for an effective Information Security Management System to prevent cyber threats, data breaches, operational disruptions, and

regulatory non-compliance. The main objectives are protecting information assets and ensuring business continuity, applying a risk-based

approach with ongoing risk assessments, and ensuring compliance with applicable laws and regulations. The Information Security 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, while the Ethics & Compliance Committee acts in a supervisory capacity on information security matters. The policy is available on the

corporate website.

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. It 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 the following 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 a 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).

If a reported matter is substantiated, the Group takes 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 2025, 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.

Board Report Sustainability Statement 89

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), which operates under 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 its Voice cultural transformation journey – transformative

because it is as much a change in culture as in mindset, designed to go beyond corporate archetypes by giving voice to everyone within the

Organisation when it comes to its growth and evolution. Believing that such a transformation is everyone's responsibility, the first phase of the

journey focused on engagement.

During this phase, the aim was to build Iveco Group's identity and define its purpose and values by listening to everyone in the Organisation and

engaging as many people as possible – from internal teams to customers and partners – through multiple means. One key initiative was the

Organisation's first-ever Voice Engagement Survey, which led to the definition of Iveco Group's Purpose, Values, and Behaviours.

The Organisation also laid the foundations for a culture of continuous feedback, actively promoting two-way communication by upskilling people

across the Group and by creating opportunities and role modelling for effective dialogue. Two-way feedback involves asking for, giving, and

receiving input from others, holding meaningful conversations, and acting on the insights received. A focus area of this mutual exchange was

enhancing managers' skills, enabling them 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, aimed at advancing the journey by making it more structured and granular, by delivering pragmatic solutions, and by

anchoring all Group processes to the Purpose and Values identified. The primary focus was thus on development and alignment, resulting in a

wealth of fully cohesive and consistent programmes and learning initiatives.

2024 saw phase three of the journey, building on the tools and processes already established and following up on commitments to deliver a

sustained transformation, fully embedding it into how Iveco Group does business.

In 2025, the fourth phase of the Voice journey, the focus was on further strengthening the Organisation's culture and the connection between

leaders and their teams. The priority was to conduct a more qualitative analysis of the data and to invest in developing leaders, reinforcing their

essential role in driving team engagement. The Group introduced initiatives to spotlight leaders who emerged as top performers in the 2025 Voice

Engagement Survey, as well as a structured development plan for those who scored less, providing tools and training to support them in engaging

with their teams. There was also consistent progress in fostering a culture of dialogue and shared accountability through the Group's Dialogue &

Action sessions, which saw over 90% of leaders working together with their teams to develop action plans based on the survey results.

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.

The Group also collects 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 potential areas of dissatisfaction, covering 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 to address any 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's annual Voice Engagement Survey has measured and

monitored employees' levels of engagement, addressing aspects such as job satisfaction, sense of purpose, clarity of expectations, and feeling of

inclusion. In 2025, it was sent out to 33,399 people in 40 countries, of whom 30,743 responded (a 92% participation rate), with 71% of employees

expressing the highest level of satisfaction.

The survey is 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.

Every year, after filling out the Voice Engagement Survey, 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 2025, these

sessions involved more than 1,200 teams.

⁽⁸⁸⁾ 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.

⁽⁸⁹⁾ 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 90

7.7 OWN WORKFORCE IN DETAIL (S1-6, S1-7)

As at 31 December 2025, Iveco Group had 35,453 employees, a decrease of 593 from the 36,046 employees at year-end 2024. The change was

mainly attributable to the difference between new hires (approximately 3,000) and departures (approximately 2,400) during the year. A further

decrease of approximately 1,200 employees was mainly due to changes in the scope of operations, related to the sale of the Group's Fire Fighting

business, partially offset by the insourcing of personnel (the Industrial Security staff) from Stellantis.

Excluding the changes in the scope of operations, the workforce increase compared to year-end 2024 was attributable primarily to workforce

growth at Bus manufacturing plants, mainly in Annonay (France) and Vysoke Myto (Czech Republic) – driven by the need for increased

production volumes to support the manufacture and sales of vehicles to meet the energy transition requirements and the growing demand for

sustainable mobility – as well as to growth in the Defence business in terms of both turnover and results, which led to an upward adjustment in

personnel across all departments.

For 2026, excluding the announced exit of the Defence business from the scope of operations, Iveco Group does not expect any significant

change in its overall workforce compared to 2025.

In 2025, there were approximately 2,400 departures from the Group, 4.7% 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. 76% of the collective redundancies and associated economic conditions were managed in line with legal requirements;

26% were early terminations of fixed-term contracts; and 1% were employment contract terminations by mutual consent, with exit incentives more

favourable than required by law.

Temporary hiring takes place in response to a temporary need for personnel. As at 31 December 2025, agency contracts⁽⁸⁸⁾ accounted for 2,854

of personnel, a decrease compared to the previous year of approximately 250. Most of these were hourly workers within the Manufacturing

function. The number of hourly agency workers decreased significantly in the Truck Business Unit due to the conversion of about 130 agency

contracts into permanent employment contracts in addition to 210 exits that occurred at the beginning of the year, both of which were driven by

the trend in production volumes. A further decrease of 70 agency workers was linked to the sale of the Group's Fire Fighting business. These

decreases were partially offset by a steady personnel increase in the Defence business (of approximately 180 workers).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 variation in relation to specific market requirements.

There were also 3,301 contractors⁽⁸⁹⁾ throughout the year, providing mainly general services such as canteen work, cleaning, waste management,

and maintenance.

Employee Headcount by Gender

(number)


Gender	Number of employees (headcount)
	2025	2024
Male	28,179	28,899
Female	7,274	7,147
Other^(a)	—	—
Not reported	—	—
Total employees	35,453	36,046

^(a) Gender as specified by the employees themselves.

Board Report Sustainability Statement 91

Employee Headcount in Countries where Iveco Group has at least 50 Employees Representing at least 10% of its Total Number of Employees

(number)


Country	Number of employees (headcount)
	2025	2024
Italy	14,481	14,513
France	4,240	3,914
Spain	4,117	4,224
Czech Republic	3,963	3,696

Employees by Contract Type, Broken Down by Gender

(number)


2025
Female	Male	Other^(a)	Not disclosed	Total
Number of employees (headcount)
7,274	28,179	—	—	35,453
Number of permanent employees (headcount)
7,069	27,292	—	—	34,361
Number of temporary employees (headcount)
205	887	—	—	1,092
Number of non-guaranteed hours employees (headcount)
—	—	—	—	—
Number of full-time employees (headcount)
6,826	27,886	—	—	34,712
Number of part-time employees (headcount)
448	293	—	—	741


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 92

Employees by Contract Type, Broken Down by Region

(number)


2025
Europe	South America	North America	Rest of World	Total
Number of employees (headcount)
30,360	4,062	75	956	35,453
Number of permanent employees (headcount)
29,506	3,828	75	952	34,361
Number of temporary employees (headcount)
854	234	—	4	1,092
Number of non-guaranteed hours employees (headcount)
—	—	—	—	—
Number of full-time employees (headcount)
29,621	4,062	75	954	34,712
Number of part-time employees (headcount)
739	—	—	2	741


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

(number)


	2025	2024
Employees at 1 January	36,046	36,037
New hires	3,006	3,036
Departures	(2,403)	(2,715)
∆ scope of operations	(1,196)	(312)
Employees at 31 December	35,453	36,046
Turnover (%)	6.8	7.5
of which voluntary turnover (%)	2.6	2.7
New hires (%)	8.5	8.4

Board Report Sustainability Statement 93

Employee Turnover by Age Group^(a)

(number)


	2025
	Under 30 years	30 to 50 years	Over 50 years
Employees at 1 January	4,174	20,828	11,044
New hires	1,278	1,519	209
Departures	(605)	(1,097)	(701)
∆ age range	(660)	(646)	1,306
∆ scope of operations	(180)	(624)	(392)
Employees at 31 December	4,007	19,980	11,466
Turnover (%)	15.1	5.5	6.1
New hires (%)	31.9	7.6	1.8


	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.

⁽⁹⁰⁾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 94

Employee Turnover by Gender^(a)

(number)


	2025
	Male	Female
Employees at 1 January	28,899	7,147
New hires	2,278	728
Departures	(1,908)	(495)
∆ gender	2	(2)
∆ scope of operations	(1,092)	(104)
Employees at 31 December	28,179	7,274
Turnover (%)	6.8	6.8
New hires (%)	8.1	10.0


	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 material impacts related to diversity, equity, and inclusion (DEI) identified through

the materiality assessment. More specifically, these measures, outlined below, are designed to prevent, mitigate, and/or remediate any negative

impacts on the workforce while maximising positive ones. Where applicable, outcomes are monitored through specific quantitative KPIs.

In October 2023, the Board of Directors adopted the Diversity, Equity & Inclusion (DEI) Policy, applicable to the Board itself, management, and

the entire workforce. The Policy acknowledges that DEI is business-critical, and not just a matter of compliance, because Iveco Group's people

are the foundation of its business, and their diverse perspectives and thinking drive business performance and organisational development.

Employees also stimulate continuous improvement and help advance a more sustainable society. Based on this belief, contributing diverse

strengths is considered a core value at Iveco Group, and fostering an inclusive and diverse environment is essential for building sustainable long-

term value as well as an effective, attractive, and resilient organisation. The DEI Policy (to be read in conjunction with the Organisation's other

governance documents, namely its Code of Conduct and Human Rights Policy) is available in 7 languages in the Governance section of the

Group's website. Completing the training on this policy is mandatory for all employees.

Iveco Group bases decisions relating to the composition of its Board and workforce on competence, merit, and talent, and its entire remuneration

approach is built on the competitive rewarding of performance. In line with these principles, and within its overall strategic planning remit, the

Board sets a number of targets addressing relevant DEI aspects for the Board itself, the members of the Senior Leadership Team (SLT), and the

overall workforce. These targets (short-, medium- or long-term, depending on the aspect in question) provide direction and guide decision-making

and operations. They are reviewed annually and fine-tuned as needed to ensure ongoing consistency with the Organisation's evolving strategic

priorities and capacities. These targets are fully outlined in the DEI Policy and include: fostering DEI; counteracting conscious and unconscious

bias through appropriate training and dialogue; integrating DEI principles into the Group's performance and recruitment and talent development

processes; progressively eliminating the gender pay gap (which is already below EU Directive thresholds); and pursuing gender balance.

In terms of gender diversity targets for senior management, set in accordance with Dutch law, the Group believes that at least one-third of the

members of the SLT should be women and at least one-third men. This goal was achieved in 2024 but, due to organisational changes, the

percentage of women members fell to 31% in 2025. To further strengthen its DEI efforts and outcomes, the Organisation has also incorporated a

strategic sustainability target into its Strategic Business Plan: to ensure that 30% of total office positions are held by women by year-end 2028⁽⁹⁰⁾.

⁽⁹¹⁾ Data collected on 31 October 2025 in Austria, Brazil, China, Czech Republic, France, Germany, Italy, Poland, Portugal, Romania, Spain, Türkiye, and Ukraine, as well as in 8 additional

countries (Algeria, Indonesia, Russia, Serbia, Slovakia, South Korea, Thailand, and Tunisia) 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 95

The Board of Directors is responsible for overseeing the target-setting process and for ensuring adherence to the DEI Policy at strategic level,

monitoring its outcomes and progress, and providing proper disclosure.

Fostering a culture of DEI is one of the Group's sustainability priorities. In 2025, the governance and composition of the DEI Council was reviewed

to ensure greater diversity and advance the Organisation's priorities, with a renewed focus on high-impact initiatives.

During the year, Iveco Group advanced its DEI strategy through a combination of global programmes and locally tailored initiatives. At global

level, mentoring circles were launched on topics such as gender, nationality, sexual orientation, and women's development, alongside

programmes such as the Group's I-Talks, designed to support the growth of diverse talent and engaging more than 300 colleagues worldwide.

Other global initiatives raised awareness of gender-based violence – including I Count Too, a webinar on achieving economic independence, and

Red Bench – benefitting thousands of employees.

In December, the Group also launched a training programme on unconscious bias, starting with a pilot at the plant in Madrid (Spain) in

preparation for its global roll-out to over 18,000 employees.

At local level, programmes such as Entre Nós Mulheres (Among Us Women) in Brazil helped accelerate women's career progression. In Turin

(Italy), the Group partnered with Save The Children on the Youth Leaders for a Sustainable Future project, designed to support local communities

by advancing an inclusive work environment and by developing employability, technological, and digital skills among disadvantaged young people

at risk of social marginalisation. The project is part of the broader Skills to Succeed (S2S) programme, implemented in 8 countries around the

world.

In France, the DuoDay initiative and several awareness workshops promoted inclusion for people with disabilities, while in Spain, the Group

invested heavily in social inclusion, including through programmes such as the government-regulated Enclave Laboral initiative, supporting the

integration of differently able workers into the workforce.

In the Czech Republic, over 2,500 Group employees benefitted from domestic violence awareness campaigns and diversity charters.

These combined efforts allowed Iveco Group to engage thousands of employees worldwide, reinforce its commitment to equity and inclusion, and

create meaningful opportunities for underrepresented groups.

Within the Human Resources Department, the Talent Management team is responsible for creating DEI programmes and initiatives and for

promoting an inclusive culture at all corporate levels, in collaboration with the HR heads of each business unit or function and the heads of

Communications 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 integrates such principles and behaviours into the employee life cycle process to ensure the sustainability of this

approach.

Given Iveco Group's global presence, there may be differences in legislation among the countries where the Organisation 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 2025 in 21 countries⁽⁹¹⁾ (where the law requires

companies to employ a minimum percentage of employees with disabilities), covering 93.5% of Group employees worldwide. The assessment

showed that differently abled employees in these countries make up 3.6% of the global employee headcount. It also showed that differently abled

women account for 21.2% of the total assessed, while men account for 78.8%. 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 2025, the Organisation also carried out an employee nationality assessment at Iveco Group legal entities in 9 countries, covering 83% of

Group employees worldwide, which evidenced that 7.7% of them were of a nationality other than the country assessed. It should be noted that

this percentage remains higher for female employees (8.9%) than for male employees (7.4%). 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 (18% in

Germany, 11% in the USA, and 10% in Italy).

Board Report Sustainability Statement 96

Employees at Top Management Level by Gender


	2025				2024
	Male		Female		Male		Female
	(number)	(%)	(number)	(%)	(number)	(%)	(number)	(%)
Top management level	105	75.0	35	25.0	121	76.6	37	23.4

Employees by Category by Age

(number)


	2025			2024
	Under 30 years	30 to 50 years	Over 50 years	Under 30 years	30 to 50 years	Over 50 years
Hourly	3,183	12,569	7,289	3,253	13,106	6,990
Salaried	596	2,586	1,427	687	2,743	1,433
Professional	226	3,602	1,820	232	3,680	1,721
Manager	2	1,223	930	2	1,299	900
Total	4,007	19,980	11,466	4,174	20,828	11,044

Employees by Category by Age

(%)


	2025			2024
	Under 30 years	30 to 50 years	Over 50 years	Under 30 years	30 to 50 years	Over 50 years
Hourly	13.8	54.6	31.6	14.0	56.1	29.9
Salaried	12.9	56.1	31.0	14.1	56.4	29.5
Professional	4.0	63.8	32.2	4.1	65.3	30.6
Manager	—	56.8	43.2	0.1	59.0	40.9
Global	11.3	56.4	32.3	11.6	57.8	30.6

Employee Gender Distribution by Category^(a)


	2025				2024
	Male		Female		Male		Female
	(number)	(%)	(number)	(%)	(number)	(%)	(number)	(%)
Hourly	19,276	83.7	3,765	16.3	19,711	84.4	3,638	15.6
Salaried	3,075	66.7	1,534	33.3	3,266	67.2	1,597	32.8
Professional	4,222	74.8	1,426	25.2	4,267	75.8	1,366	24.2
Manager	1,606	74.5	549	25.5	1,655	75.2	546	24.8
Total	28,179	79.5	7,274	20.5	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)

(%)


	2025	2024
Women as a share of total employees	20.5	19.8
Women in all management positions	25.4	24.8
Women in junior management positions	21.6	20.8
Women in top management positions	25.0	23.4
Women in management positions in revenue-generating functions	25.7	26.2
Women in STEM positions	15.7	15.5

^(a) Information disclosed according to sustainability rating agency requirements.

Board Report Sustainability Statement 97

Employee Nationality^(a)

(%)


	2025		2024
	Share of total employees	Share of total management positions	Share of total employees	Share of total management positions
Italian	44.6	68.1	43.8	66.4
Spanish	13.7	3.7	13.8	4.0
French	13.5	7.3	12.5	7.1
Brazilian	10.9	8.5	10.8	8.2
German	5.8	4.0	8.4	5.6
Argentinian	3.1	2.3	2.7	2.2
Chinese	1.4	1.2	1.4	1.2
Other nationalities	7.0	4.9	6.6	5.3

^(a) Information disclosed according to sustainability rating agency requirements. Assessment covering 83% of Iveco Group employees.

Data Calculation Methodology

DEI data and information were collected, where available, through dedicated IT management and control systems (the SAP HR or ESGeo)

platforms) to ensure reliable 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 material impacts related to employee compensation and benefits identified through

the materiality assessment.

More specifically, these measures, outlined below, are designed to prevent, mitigate, and/or remediate any material negative impacts on the

workforce while maximising positive ones. 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. Overtime at Iveco Group is managed, monitored, and compensated in strict compliance with

applicable legal requirements and, where relevant, collective bargaining agreements.

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 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.

⁽⁹²⁾ This calculation includes about 99% of Group employees worldwide, 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). In 2024, the highest total annual remuneration was received by the Group's Chief Executive Officer (CEO). The ratio between

this remuneration and the median annual remuneration of all other employees (excluding the CEO) was 59.1.

⁽⁹³⁾ Calculated for each country as the average male full-time equivalent (FTE) base salary plus short-term incentives (STI) minus the average female FTE base salary plus STI, divided by

the average male FTE base salary plus STI. The overall figure is a weighted average based on the headcount in each country.

⁽⁹⁴⁾ Iveco Group assesses gaps in gender pay equity by using well-established statistical techniques. This analysis covers more than 90% of its employees.

Board Report Sustainability Statement 98

In 2025, the total annual remuneration ratio of Iveco Group's highest paid individual (i.e., the Chairperson) to the median total annual

remuneration for all employees (excluding the highest-paid individual) was equal to 73.4⁽⁹²⁾.

For information on the CEO pay ratio disclosure as established by the Dutch Corporate Governance Code, please refer to the 'Remuneration

Report' in this Annual Report.

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) to identify and address 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

2025 revealed a gender pay gap of -3.1%⁽⁹³⁾.

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 to identify factors that could potentially influence pay differences,

employing a well-established statistical technique to identify any pay gap between male and female employees that could not be explained by or

attributed to those 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⁽⁹⁴⁾ 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, with final approval from

senior management. 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

▪ the 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 2025, 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 99

Employees Entitled to Benefits^(a)

(%)


	2025	2024
Financial benefits
Supplementary pension plans	71.9	76.5
Supplemental health plans	81.4	67.6
Financial support in the event of accident/death/disability	87.7	87.8
Employee cafeterias or meal vouchers	92.2	87.3
Transportation^(b)	17.2	19.8
Social benefits
Childcare^(c)	58.2	59.2
Sports facilities^(d)	51.5	28.3
Wellness and nutrition programmes^(e)	90.4	86.1

^(a) Information disclosed according to sustainability rating agency requirements.

^(b) Includes benefits such as Group cars, fuel reimbursement, and travel allowance.

^(c) Includes kindergartens, summer camps/holidays, and other childcare services or educational assistance.

^(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 2025, approximately 72% of employees were eligible for a supplementary pension plan, and 62% of those eligible had joined one (representing

44% of the total population assessed).

In addition, nearly all of Iveco Group's legal entities participate in supplemental healthcare plans, the majority being insurance-based. Levels of

coverage vary by country, depending on the public healthcare system, tax and regulatory restrictions, and local market conditions. The data

collected showed that approximately 81% of employees were also eligible for a supplemental health plan, and about 85% of those eligible had

joined one.

Iveco Group complies with 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,

Russia, and India (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 material impacts related to occupational health and safety identified through the

materiality assessment. More specifically, these measures, outlined below, are designed to prevent, mitigate, and/or remediate any material

negative impacts on the workforce while maximising positive ones. 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 facilitates the achievement of improvement targets.

In 2025, the Group delivered 182,832 hours of occupational health and safety training (of which 126,011 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 23,002 employees (representing 65% of total Group employees), 81% of whom were hourly. Specific

refresher courses on safety rules and procedures are also delivered each year to contractors and agency workers.

⁽⁹⁵⁾ For more information, see 7.10.7 Occupational Health and Safety in Numbers in this Sustainability Statement.

⁽⁹⁶⁾ The base year (2019) injury frequency rate is equal to 2.951 injuries per 1,000,000 hours worked.

Board Report Sustainability Statement 100

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 (for more information, see 7.10.2 Certification Process in this Sustainability Statement).

Consolidated monitoring and reporting systems – such as the ESGeo platform – 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-wide),

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 work organisation and the design (or redesign) of work areas and

processes. 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.

In 2025, management at one of the Group plants carried out an internal review of its health and safety (H&S) data and identified certain anomalies

resulting from the incorrect application of the Group's internal procedure on H&S KPI accounting. The figures were therefore revised and updated

(in line with ESRS requirements on presenting comparative information and reporting errors), and the 2019-2024 data restated accordingly.

During the year, further checks (i.e., control points) were incorporated into the internal control system for sustainability reporting, with the aim of

improving data monitoring and reliability⁽⁹⁵⁾.

Iveco Group has set ambitious annual voluntary targets for occupational health and safety, taking into account the specific 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⁽⁹⁶⁾). In 2025, the rate decreased by 51% compared to 2019.

Injury Frequency Rate – Employees and Agency Workers


	2025	2024 Recast^(a)	2024^(b)
Injury frequency rate ^(c) (injuries per 1,000,000 hours worked)	1.445	1.750	1.923
Lost time injuries (number)	86	107	120
of which work-related injuries (number)	86	101	114
of which non-work-related injuries (number)	—	6	6
Hours worked (number)	59,500,256	61,134,309	62,389,086

^(a) The 2024 Recast column reports figures recalculated after excluding Iveco Group's former Fire Fighting Business Unit.

^(b) The 2024 figures were recalculated to reflect the results of an internal review performed in 2025 and disclosed in line with ESRS 1 paragraph 7.5. The total number of injuries (both work-

related and non-work-related) prior to the restatement for employees and agency workers combined was 85. For additional information, see the relevant 'Data Calculation Methodology'

section.

Board Report Sustainability Statement 101

^(c) 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 2.951 injuries per 1,000,000 hours

worked. The base year data was recalculated to reflect both the change in reporting scope resulting from the sale of the Group's firefighting business and the outcomes of an internal

review performed in 2025 (see 'Data Calculation Methodology'). For information on the rationale for choosing 2019 as the base year, see 1.1 General Basis for the Preparation of the

Sustainability Statement.

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

▪ the 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. In 2025, further checks (i.e., control points) were incorporated into the internal control

system for sustainability reporting, with the aim of improving data monitoring and reliability while ensuring the correct implementation of data

collection procedures. At local level, each plant's Environment, Health and Safety (EHS) 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 27 Group sites worldwide (both manufacturing and non-manufacturing) and accounting for 25,206 employees (about 72% of the

employees within the reporting scope) as well as 2,641 contractors and 3,225 agency workers (representing 80% and 94% 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 2025, the Organisation carried out 298 internal audits of its management systems, covering 28,876 employees (about 82% of the employees

within the reporting scope), as well as 2,923 contractors and 3,364 agency workers (representing 89% and 98% of the respective populations

within the reporting scope). Additionally, 27 external audits covered 25,206 employees (about 72% of the employees within the reporting scope),

as well as 2,641 contractors and 3,225 agency workers (representing 80% and 94% 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 encourage

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.

⁽⁹⁷⁾ Sort, Set in order, Shine, Standardise, Sustain.

⁽⁹⁸⁾ In 2025, management at one of the Group plants carried out an internal review of its health and safety data and, as a result, some 2024 data was restated. For more information, see

7.10.7 Occupational Health and Safety in Numbers in this Sustainability Statement.

⁽⁹⁹⁾ The non-manufacturing data refers only to sites with more than 30 employees.

⁽¹⁰⁰⁾ 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 102

In 2025, 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.

On World Day for Safety and Health at Work, the plants in Cordoba (Argentina) conducted an information campaign on the Group's workplace

health and safety standards, distributing leaflets to all personnel and displaying posters throughout the plants to maximise visibility and

engagement. The campaign covered key topics such as proper use of personal protective equipment (PPE), site-specific risks, emergency

procedures, 5S methodology⁽⁹⁷⁾, internal traffic rules, and safe use of lifting equipment and machinery, fostering awareness and a consistent,

responsible approach to safety across the facilities. The plants in Turin (Italy) launched a programme designed to help participants recognise

common cognitive biases – such as haste, overconfidence, or underestimating risk – and understand their impact on decisions and behaviours in

real work situations. The programme combines on-site analyses, practical exercises, and guided discussions to explore these dynamics and

develop actionable strategies for prevention in production areas. Follow-up activities occur every three months, with monthly checkpoints to

review progress and the achievement of objectives. By enhancing individual and collective awareness, the programme aims to reinforce a robust,

shared safety culture across the plants. The plant in Brescia (Italy) launched the 3 Minutes Team Leader initiative, consisting of daily three-minute

briefings at the start of each shift, each focusing on a specific health and safety topic to keep teams continuously informed and aware. Topics

include basic safety rules, the location of defibrillators (AEDs), site traffic and driving rules for internal vehicles, and PPE. This structured,

repetitive approach strengthens employees' safety knowledge, promotes consistent communication, and contributes to a safer and more

responsible work environment. The plants in Sete Lagoas (Brazil) joined the nationwide Maio Amarelo (Yellow May) road safety campaign with an

internal traffic accident prevention initiative. Activities to raise employee awareness of safe driving and traffic-related risks included safety blitzes,

banners with preventive messages, and three IVECO S-WAY vehicles at plant entrances displaying traffic safety messages. These educational

and interactive efforts were designed to reinforce safe driving practices, highlight the dangers of inattentiveness and imprudence, and promote a

culture of road safety, supporting Brazil's broader effort to engage communities in preventing traffic accidents.

At Group level, a comprehensive set of Safety Guidelines for hydrogen fuel cell vehicles is being developed to cover risk assessments, PPE,

safety systems, safety training, and requirements for production and maintenance workshops – with a strong emphasis on process safety and

operational activities throughout the entire vehicle life cycle. In the absence of harmonised European regulations on the topic, establishing clear,

robust, and shared internal standards is crucial to ensure safety and consistency across all operations. Driving this initiative is a multidisciplinary

Technical Working Group, leveraging expertise from various departments to deliver a comprehensive, integrated approach.

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 Piacenza plant (Italy) introduced new CE-certified mobile equipment to improve ergonomics and safety when tilting the cabs of off-highway

trucks used on construction sites and quarries. Manually positioned by the operator and connected to the truck's hydraulic system, the pneumatic

machine is operated via a control panel that requires both hands, keeping them out of harm's way throughout the procedure. This ensures safe

handling and controlled cab tilting while reducing physical effort and enhancing comfort.

Meanwhile, the Madrid plant (Spain) introduced a low-cost automation system to move cab fridges from the logistics area to the assembly

stations, replacing a previously manual task. With each fridge weighing approximately 7 kilos, the system coordinates their transfer and

positioning according to production requirements, minimising manual lifting, bending, and stretching. By standardising safe handling in line with

best practices and the Group's kaizen continuous improvement principles, the system significantly reduces biomechanical strain on operators and

the risk of musculoskeletal injuries, ensuring consistent, ergonomically safe operations throughout the assembly process.

7.10.4 Health and safety performance (S1-14)

In 2025, the Group spent approximately €56.6 million on improving health and safety protection, of which almost €51.5 million on improvements to

occupational safety and working conditions (worker protection, structural improvements, and inspections of plants and working environments),

and approximately €5.1 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 2025 was 1.445 injuries per 1,000,000 hours worked, a 17.4% drop

compared to the result achieved the previous year⁽⁹⁸⁾. Safety data relates to approximately 99.7% of employees within the reporting scope⁽⁹⁹⁾.

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 2025, 1,498 near misses⁽¹⁰⁰⁾ 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.

Board Report Sustainability Statement 103

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 2025, 26 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).

The plants in Cordoba (Argentina) launched a Cardiopulmonary Resuscitation (CPR) training programme using augmented reality (AR)

technologies to prepare employees for medical emergencies. Thanks to virtual reality, workers were able to practice essential lifesaving

manoeuvres, including CPR and emergency-response procedures. The initiative increased their confidence in managing critical scenarios,

reinforcing a workplace culture centred on health and safety.

The plants in Sete Lagoas (Brazil) ran a month-long mental health awareness campaign. Expert-led sessions provided employees with practical

tools for recognising emotional distress, managing stress, and supporting colleagues through active listening, including specific guidelines for

managers to address psychosocial risk factors. By fostering open dialogue and reducing stigma around mental health, the initiative aimed to

reinforce psychological wellbeing and facilitate timely access to support. The Sete Lagoas plants also organised a breast cancer prevention

campaign, with expert-led sessions focused on early detection, self-examination techniques, and holistic health practices. The initiative also

included complementary wellness activities encouraging female employees to participate in preventive screenings and adopt self-care habits that

support long-term health and wellbeing, both at and away from the workplace.

The plant in Suzzara (Italy) hosted the Health Day initiative, giving employees and their families access to preventive medical services, health

assessments, screenings, and specialist consultations. Combined with health education sessions and activities promoting physical and mental

wellbeing, the event enhanced awareness of common health conditions, encouraged proactive health monitoring, and fostered a community-

oriented approach to workplace wellbeing. As part of a broader preventive health strategy, the Suzzara plant also launched an ECG Screening

programme, offering cardiologist-supervised electrocardiograms to employees over 50. The screenings aimed to support the early detection of

cardiac anomalies and help reduce the risk of severe cardiovascular events. Participants received individual feedback on their results, along with

guidance on prevention measures and heart-healthy lifestyles. The programme contributed to promoting proactive cardiovascular health

management and long-term wellbeing among the workforce, reinforcing a workplace culture that prioritises employee health, risk awareness, and

evidence-based preventive practices.

Meanwhile, the Train Me initiative was launched across all dealers of property (DOPs) in Europe, consisting of a two-week wellness programme

designed to promote physical activity, improve overall health, and encourage sustainable lifestyle habits among employees. The programme

included guided sports activities and health-promotion sessions aimed at enhancing cardiovascular fitness, reducing sedentary behaviour, and

fostering the long-term adoption of wellbeing practices.

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.

Board Report Sustainability Statement 104

7.10.7 Occupational health and safety in numbers (S1-14)

With regard to quantitative KPIs and metrics for occupational health and safety, the main data and indicators are provided in the following tables.

Health and Safety Performance – Employees


	2025	2024 Recast^(a)	2024^(b)
Fatalities as a result of work-related injury (number)	—	—	—
Fatalities as a result of work-related ill health (number)	—	—	—
Recordable work-related injuries (number)	71	88	101
Cases of recordable work-related ill health^(c) (number)	26	16	16
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^(c) (number)	5,110	3,126	3,584
Injury frequency rate^(d) (recordable work-related injuries per 1,000,000 hours worked)	1.321	1.575	1.770
Injury severity rate^(e) (days lost per 1,000 hours worked)	0.095	0.056	0.063
Occupational illness frequency rate (OIFR) (cases of recordable work-related ill health per 1,000,000 hours worked)	0.484	0.286	0.280
Hours worked (number)	53,745,142	55,886,201	57,072,859

^(a)The 2024 Recast column reports figures recalculated after excluding Iveco Group's former Fire Fighting Business Unit.

^(b) The 2024 figures were recalculated to reflect the results of an internal review performed in 2025 and disclosed in line with ESRS 1 paragraph 7.5. For additional information, see the

relevant 'Data Calculation Methodology' section.

^(c) The 2024 data was restated to reflect a change in the Group's definition of recordable work-related ill health. As of 2025, this is defined as any disease caused by work (and resulting in

permanent disability) recognised by the national or state insurer during the reporting year for an employee (on the payroll as at 31 December), and for which the insurer provides

compensation.

^(d)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.

^(e) 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.

Health and Safety Performance – Contractors


	2025	2024 Recast^(a)	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	9	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)	180	167	167
Injury frequency rate ^(b) (recordable work-related injuries per 1,000,000 hours worked)	0.860	1.349	1.348
Injury severity rate ^(c) (days lost per 1,000 hours worked)	0.031	0.025	0.025
Occupational illness frequency rate (OIFR) (cases of recordable work-related ill health per 1,000,000 hours worked)	—	—	—
Hours worked (number)	5,810,586	6,671,455	6,674,877

^(a) The 2024 Recast column reports figures recalculated after excluding Iveco Group's former Fire Fighting Business Unit.

^(b) 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.

^(c) 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.

⁽¹⁰¹⁾ See 1.1 General Basis for the Preparation of the Sustainability Statement.

Board Report Sustainability Statement 105

Health and Safety Performance – Agency Workers


	2025	2024 Recast^(a)	2024^(b)
Fatalities as a result of work-related injury (number)	—	—	—
Fatalities as a result of work-related ill health (number)	—	—	—
Recordable work-related injuries (number)	15	13	13
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)	485	607	607
Injury frequency rate ^(c) (recordable work-related injuries per 1,000,000 hours worked)	2.606	2.477	2.445
Injury severity rate ^(d) (days lost per 1,000 hours worked)	0.084	0.116	0.114
Occupational illness frequency rate (OIFR) (cases of recordable work-related ill health per 1,000,000 hours worked)	—	—	—
Hours worked (number)	5,755,114	5,248,108	5,316,227

^(a) The 2024 Recast column reports figures recalculated after excluding Iveco Group's former Fire Fighting Business Unit.

^(b) The 2024 figures were recalculated to reflect the results of an internal review performed in 2025 and disclosed in line with ESRS 1 paragraph 7.5. For additional information, see the

relevant 'Data Calculation Methodology' section.

^(c) 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.

^(d) 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 Calculation Methodology

Occupational health and safety data refers to both manufacturing and non-manufacturing sites and includes employees, contractors, and agency

workers. This data does not include senior managers, in line with Iveco Group's internal occupational health and safety (H&S) procedures.

Given the variability in the use of contractors and agency workers at Iveco Group sites worldwide during the reporting period, their total numbers

are based on simple 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.

Iveco Group’s internal occupational health and safety (H&S) procedures define an injury as an undesired traumatic event occurring in the course

of work, caused by a violent factor, which results in harm to a worker's health or in the worker's inability to work. To enable comparability and

consistency across locations worldwide, these procedures and criteria apply to all Iveco Group sites, and this is reflected in the data reported in

the Sustainability Statement.

The 2024 figures were recalculated – and reported separately as recast data – to reflect the exclusion of Iveco Group's former Fire Fighting

Business Unit and enable comparability with the 2025 reporting perimeter.

In 2025, management at one of the Group plants carried out an internal review of its H&S data and identified certain anomalies resulting from the

incorrect application of the Group's internal procedure on H&S KPI accounting. The figures were therefore revised and updated (in line with ESRS

requirements⁽¹⁰¹⁾ on presenting comparative information and reporting errors), and the 2019-2024 data restated accordingly. The sum of the 2024

restated numbers of recordable work-related injuries, as reported in the previous three 'Health and Safety Performance' tables (covering Group

employees, agency workers, and contractors, respectively), was 123 (against the total of 90 reported prior to the restatement); all related figures

(e.g., injury frequency and severity rates) were restated accordingly.

The 2019 base year figures (used for targets) were recalculated adopting the same approach as for the 2024 figures.

7.11 PEOPLE DEVELOPMENT (S1-4)

Iveco Group implements a series of measures to address the material impacts related to people development identified through the materiality

assessment. More specifically, these measures, outlined below, are designed to prevent, mitigate, and/or remediate any negative impacts on the

workforce while maximising positive ones. Where applicable, outcomes are monitored through specific quantitative KPIs.

Board Report Sustainability Statement 106

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 Iveco Group for

more than 3 months), with all eligible employees taking part in the process.

In 2025, 11,324 employees (representing 100% of those eligible and 32% of the global employee headcount) participated in the PDP. Of these,

almost 28% were female and 72% 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 2025, the Group set key sustainability targets related to its social, environmental, and climate change efforts (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 (EEHS)

managers, and other staff at plant level.

'Focus' was the theme that shaped Iveco Group's 2025 strategy and guided the Organisation throughout the year. It provided direction to further

enhance quality, improve customer satisfaction, stay ahead of the competition, optimise costs, and increase profitability, while also inspiring

employees to take pride in their work. These goals remained central to the Group's collective efforts, with the Focus Strategy integrated into the

annual objectives of all employees. The Group also continued its top-down and bottom-up approach to target setting, ensuring that everyone

aligned their objectives with the Organisation's commitments in terms of customers, quality, cost, and ESG, all in support of overall growth.

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.

⁽¹⁰²⁾ Calculated by dividing the number of positions filled by internal candidates in 2025 by the total number of positions filled in the same year.

Board Report Sustainability Statement 107

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 2025, 49% of open positions across the Organisation were

filled by internal candidates⁽¹⁰²⁾.

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 2025, Iveco Group invested approximately €7.3 million in learning and development initiatives globally, 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 €3.1 million (see 'Training in Numbers'), but also all other costs of people development initiatives, including those

managed outside the ON LEARN LMS platform. These other costs cover, but are not limited to: training systems, the newly adopted Udemy

learning library, training materials, MBA and master's 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, in addition

to the more conventional approaches (classroom training, experiential workshops, and self-study), a variety of learning methods such as:

coaching, mentorship, learning networks to foster 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 topics such as soft skills, IT and software tools, language training and cultural awareness, and digital transition

awareness)

▪ 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 developing the most

effective and comprehensive learning processes for each employee based on business, location, and/or individual needs. It builds upon the

Group's academies and training programmes specific to each business unit and function.

More than 24,000 e-learning courses (offered in multiple languages) are available to Iveco Group employees worldwide through the Udemy

Business learning library, enabling them to learn at their own pace. This approach ensures a consistent and inclusive learning experience for

everyone, regardless of geographic location.

Dialogue for Development (integrated into both the Performance Development Process and the talent review process) offers employees the

opportunity to reflect on their strengths, 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)

Board Report Sustainability Statement 108

▪ 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 for 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 2025, 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). A total of 5 Group-wide livestreams were

held during the year, averaging 1,000 participants each and with high engagement throughout.

Training in Numbers (S1-13)

In 2025, the training that the Organisation provided exclusively under the ON LEARN LMS platform (and covered by the approximately €3.1

million investment) totalled 343,112 training hours, delivered to 22,915 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)


	2025	2024
Training hours (number)	343,112	450,619
Average hours of training per employee (number)	9.7	12.5
Average amount spent per employee (€)	86.5	122.9

^(a)Information disclosed according to sustainability rating agency requirements.

Hours of Training by Type of Training^(a)

(number)


	2025			2024
	Job-specific expertise	Management & Soft skills	Languages & ICT tools	Job-specific expertise	Management & Soft skills	Languages & ICT tools
Training hours	267,626	26,382	49,104	307,813	96,993	45,813
Average hours of training per employee	7.6	0.7	1.4	8.5	2.7	1.3

^(a)Information disclosed according to sustainability rating agency requirements.

Hours of Training per Employee by Gender

(number)


	2025		2024
	Male	Female	Male	Female
Training hours	261,444	81,668	345,382	105,237
Average hours of training per employee	9.3	11.2	12.0	14.7

Board Report Sustainability Statement 109

Hours of Training per Employee by Category

(number)


	2025				2024
	Hourly	Salaried	Professional	Manager	Hourly	Salaried	Professional	Manager
Training hours	137,592	67,663	102,305	35,552	159,554	84,852	131,621	74,592
Average hours of training per employee	6.0	14.7	18.1	16.5	6.8	17.4	23.4	33.9

Hours of Training per Employee by Age Group^(a)

(number)


	2025			2024
	Under 30 years	30 to 50 years	Over 50 years	Under 30 years	30 to 50 years	Over 50 years
Training hours	54,718	209,022	79,372	55,382	285,376	109,861
Average hours of training per employee	13.7	10.5	6.9	13.3	13.7	9.9

^(a)Information disclosed according to sustainability rating agency requirements.

Data Calculation Methodology

Data and information related to people development were collected, where available, through dedicated IT management and control systems

(such as the ON LEARN platform for data on training) to ensure reliable 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 staff turnover and increasing retention.

In 2023, as part of its Leadership Development offer through the Leadership Lab, 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 locations. 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 2025, 120 people (comprising 2 cohorts) graduated from the GLP, while an additional cohort of 60 people started the programme. 51% of those

who graduated (62 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 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.

⁽¹⁰³⁾ Data collected for all Group employees, excluding hourlies.

⁽¹⁰⁴⁾As family leave KPIs are subject to a phase-in period, they are reported voluntarily based on data collected over a limited timeframe (January-October).

Board Report Sustainability Statement 110

7.12 WELFARE AND WELLBEING (S1-4)

Iveco Group implements a series of measures to address the material impacts related to employee welfare and wellbeing identified through the

materiality assessment. More specifically, these measures, outlined below, are designed to prevent, mitigate, and/or remediate any negative

impacts on the workforce while maximising positive ones. 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.

Iveco 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.

In 2025, a wide range of Group initiatives focused on health, disease prevention, and mental wellbeing.

Flu vaccination campaigns were carried out in Germany, Austria, the UK, Argentina, France, and the Czech Republic, benefitting thousands of

employees and helping reduce absenteeism. In the Czech Republic, the Week of Health initiative provided comprehensive health checks, mental

health seminars, and healthy food options, involving over 2,000 employees.

In France, mental health support was offered through the Moka.Care platform, providing hundreds of employees with access to coaching,

psychologists, and wellbeing resources. In the UK, employees benefitted from private medical insurance, including mental health coverage and

counselling services delivered through the Group's occupational health provider, while in the USA, the Employee Assistance Program and

wellness discounts were in place to support employees' mental resilience.

Cancer prevention campaigns were also a priority. In France, during Pink October, breast cancer awareness was promoted through on-site

activities and donations, while in Italy and Spain, mobile screening services and large-scale prevention programmes focused on breast and

prostate cancer, benefitting thousands of employees.

Childcare support continued across several countries. In Germany, employees received discounts at local day care centres, while in Argentina,

school kits and kindergarten subsidies were provided to families. In France, the Vénissieux site reserved nursery places for employees with young

children. Meanwhile, designated breastfeeding areas, ensuring hygiene and privacy, were maintained at sites in Argentina and other locations

worldwide.

These initiatives reflect Iveco Group's global commitment to promoting health, wellbeing, and work-life balance for all employees.

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 2025, 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 actions to improve employee work-life balance, and revealed that

93.8% of the employees involved⁽¹⁰³⁾ 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 more than 20

countries, benefitting over 10,000 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 2025⁽¹⁰⁴⁾, 60% of Group employees were eligible for maternity leave, with 2% of those eligible taking it. 100% of the overall leave was taken by

female employees. Meanwhile, 88% of employees were eligible for paternity leave, with 3% of those eligible taking it. 98% of overall leave was

taken by male employees, 2% by female employees.

⁽¹⁰⁵⁾ 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 111

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.

Carers' leave⁽¹⁰⁵⁾was available to 95% of Group employees, with 5% of eligible employees taking it. 80% of the overall leave was taken by male

employees, 20% by female employees.

It should be noted that, in some cases, carers' leave is paid. This is the case in Italy, where paid leave is provided to support a family member in

the event of serious illness.

In some instances, the family leave conditions offered by the Organisation (defined according to corporate policy or agreements with trade unions

or employee representatives) are more favourable than those required by law. In Germany, for instance, additional leaves are granted for

significant life events, such as childbirth, and to provide support to employees during critical times in their lives.

7.12.3 Sense of belonging and pride

Across Iveco Group, numerous initiatives in 2025 helped strengthen employees' sense of belonging, pride, and connection to their workplace

communities. Family Days and open‑house events were organised in several locations, giving employees and their families the opportunity to visit

sites, learn about Group operations, and take part in celebrations together. In Italy, for example, the Family Day organised to celebrate IVECO’s

50th anniversary in Brescia was attended by more than 1,000 people. In France, similar engagement activities included a well-attended Family

Day in Annonay, with over 1,400 visitors, as well as ceremonies recognising employees for their long service to the Organisation. In Germany,

around 750 people took part in an on-site Family Day. In the Czech Republic, initiatives such as the Iveco CR Open Day attracted more than

6,000 visitors, reinforcing a strong sense of community among local employees and their families.

Celebrations dedicated to employees' children were also central to the Group's approach. In December, the Iveco Group Industrial Village in

Turin (Italy) was transformed into a Winter Circus hosting more than 6,800 employees with their families and friends over the two-day event, with

festive shows and the distribution of gifts to children. Christmas presents were also given to children in Switzerland and to over 1,600 children in

Brazil. In Italy and Argentina, other Christmas initiatives brought joy to more than 1,900 children while reinforcing the Group's family‑friendly

culture. In Brazil, the Gente Grande por um Dia (Grown-Ups for a Day) programme welcomed over 500 children and teenagers to experience a

day at their parents' workplace, strengthening emotional connections and shared pride.

Group employees were involved throughout the year in many community-based and skills-based volunteering initiatives aimed at supporting

people, society, and the environment, and in activities to raise awareness of socially relevant issues. These efforts resulted in approximately

3,100 employees at various sites donating a total of 31,362 hours of volunteering. The ever-popular Volunteering Day event was held once again,

with over 550 employees worldwide taking part in various initiatives to positively impact local communities, including collecting and distributing

food, cleaning communal areas, and supporting children's associations. In Turin (Italy), in collaboration with Rise Against Hunger, 900 food kits

were assembled and distributed to over 1,300 people in need. In its third 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, Suzzara (Italy); Madrid (Spain); Arbon (Switzerland); Vysoke Myto

(Czech Republic); Aurora (USA); Cordoba (Argentina); Contagem and Sete Lagoas (Brazil); and Shanghai (China).

Sport, wellness, and recreational activities played a significant role in building community spirit across regions. Employees participated in

running events, cycling races, football tournaments, and wellness challenges that promoted active lifestyles while strengthening social bonds. In

Spain, the Race Against Cancer in Valladolid saw almost 500 employees taking part; in France, the Ardéchoise cycling race brought together

more than 100 participants; and in Italy, charity and wellness initiatives such as the Pigiama Run and site‑level sports programmes engaged

employees in both physical activity and social initiatives. In Brazil, the IVG Soccer Cup involved more than 300 employees, while other wellness

programmes benefitted thousands through gamified fitness challenges and coordinated wellbeing activities.

Together, these initiatives – including large celebration events, family engagement, children's activities, and sports and wellness programmes –

helped cultivate a strong sense of belonging and pride among employees across the Group.

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. During 2025, in-person and online negotiations with the SNB on the EWC agreement took place following specific

training in late January 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.

Board Report Sustainability Statement 112

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 20% of Iveco Group employees), whilst 19

countries (accounting for 3% 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 220 Iveco Group

employees (representing 20% of the total employee headcount of the 19 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 77% of total Group employees), are reported below.

Union Membership

(%)


	2025		2024
Country	Union membership	Non-union membership	Union membership	Non-union membership
Lithuania^(a)	80.0	20.0	80.0	20.0
Ethiopia	73.6	26.4	77.5	22.5
China	75.8	24.2	75.8	24.2
Argentina	70.8	29.2	68.1	31.9
Spain	63.8	36.2	61.4	38.6
Italy	42.6	57.4	41.4	58.6
Czech Republic	29.7	70.3	31.7	68.3
South Korea	5.1	94.9	2.4	97.6
Brazil	0.2	99.8	0.4	99.6

^(a) In Lithuania, the total number of employees is less than 10.

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 a number of issues, as defined by law or applicable collective agreements. Thus, the Group regularly engages with workers'

representatives on working conditions, including health and safety in the workplace, wages and benefits, operational issues (working hours, shifts,

collective vacations, etc.), training, equal opportunities, as well as corporate restructuring, collective redundancies, and so on. In the countries

within 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.

An assessment carried out in 2025 in all of Iveco Group's countries of operation revealed the absence of any employee representative bodies in

23 of those countries (accounting for 4.1% of the employees analysed). Worldwide, more than 93% of Iveco Group employees are covered by

representative bodies.

7.13.3 Joint committees (S1-2)

In 2025, data showed that more than 82% 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 68.2%, 57.2%, and 6.7%, respectively, of the employees analysed, while 68.2% of them

were represented by joint committees that deal with other issues.

7.13.4 Collective bargaining agreements (S1-8)

As at 31 December 2025, collective bargaining agreements (CBAs) covered 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 52.6% of the agreements reached in 2025

at Group 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 were located in countries or at legal entities or sites where CBAs are unavailable; for 17.7% 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.

Board Report Sustainability Statement 113

Collective Bargaining Coverage and Social Dialogue


2025	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.


2024	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 2025, Iveco Group signed a total of 171 collective labour agreements (CLAs) at either Group, legal entity or plant level, 12.9% 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 2025, 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.

Main Issues Covered under the Agreements^(a)

(%)


	2025	2024
Training	27.2	34.2
Wages/pay issues	25.4	28.8
Other	18.5	10.4
Health & safety	9.5	7.7
Operating issues	9.0	9.9
Restructuring	3.9	3.6
Equal opportunities and/or diversity, equity, and inclusion (DEI)	3.9	2.7
Career development	2.2	0.9
Employability and life-long learning	0.4	0.9
Stress management	—	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.

⁽¹⁰⁶⁾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 114

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. Furthermore, prior to mass terminations, the law

normally requires a minimum consultation period or, where no consultation is envisaged, a minimum notice period. Where permitted by the

regulations in force⁽¹⁰⁶⁾, 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 programmes, individual follow-up consultations with employees, reduced

working hours, outplacement services, early retirement, and/or compensation more favourable than required by law.

In February 2025, Iveco Group announced its decision to separate its defence business from its commercial vehicles business. Within the

framework of the relevant carve-out, the information and consultation procedures with employees/employees' representatives, as required by

applicable law, were completed in certain countries for the transfer of assets and employees associated with Brand IDV. These transfers were

made to legal entities that are subsidiaries of a defence holding company, fully and directly owned by Iveco Group N.V.. Specifically, effective

from 1 November 2025: in Germany, assets and 27 employees were transferred from Iveco Deutschland AG to IDV Germany GmbH; in Italy,

assets and 19 employees were transferred from Iveco S.p.A. to Iveco Defence Vehicles S.p.A.; in the Netherlands, assets and 11 employees

were transferred from Iveco Nederland B.V. to IDV Nederland B.V.; and in Spain, effective from 3 November 2025, assets and 11 employees

were transferred from Iveco España, S.L. to IDV Defence Vehicle Espana, S.L.

In Switzerland, in 2025, a few additional employees left the Group under the conditions agreed in 2024 as part of the reorganisation at Brand

FPT's R&D centre in Arbon, aimed at strengthening its focus on research, advanced engineering, and new technology domains.

In Brazil, following a drop in demand at the end of the year, an agreement with the trade union was reached in August to extend, for another 2

years, the hour bank agreement made in 2023, providing for a more flexible approach able to mitigate social impacts whilst satisfying Group

needs. The agreement allowed employees to amass up to 220 hours in their individual hour banks, with the option to recoup, in 2026, any hours

not worked in 2025. However, the market contraction in the last quarter of 2025 required the implementation of a downsizing plan at the Sete

Lagoas plants, owned by IVECO Brasil Ltda and FPT Industrial Brasil Ltda, respectively. Holiday leave was brought forward and employees

choosing voluntarily to leave the Group were not replaced. Workforce reduction was carried out gradually in November and December as

production needs fell. In total, about 110 hourly workers were affected (of whom 23.6% were temporary) and handled in compliance with all legal

requirements, including in relation to the financial provisions to which they were entitled.

7.13.6 Labour unrest

In Italy, hours lost due to strikes decreased by 4% in 2025 compared to the previous year, reflecting a lower level of labour unrest. It should be

noted that almost 72% 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).

In France, the level of labour unrest in 2025 slightly increased compared to the previous year. Unlike previous years, most of the strikes were

related to external factors, mainly government budget measures.

In the Group's other countries of operation, episodes of labour unrest during the year were absent or negligible.

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 Group activities. It was set following the

Organisation's first human rights assessment cycle completed the previous year, which covered 100% of its employees during the 2022-2024

period.

For further details on:

▪ the target definition process

▪ stakeholder involvement in target setting

▪ the 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.

⁽¹⁰⁷⁾ Joint ventures in which Iveco Group holds at least a 51% interest are included in the perimeter.

⁽¹⁰⁸⁾ United Nations' Guiding Principles on Business and Human Rights: Implementing the United Nations 'Protect, Respect and Remedy' Framework 2011.

⁽¹⁰⁹⁾ 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).

Board Report Sustainability Statement 115

To monitor human rights across its internal operations, the Group has a structured process to identify areas of potential risk or non-compliance 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 in question, 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⁽¹⁰⁷⁾, 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 countries are always analysed in

the same order over this 3-year assessment period to ensure continuous coverage of 100% of the countries in which the Group operates. 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:

▪ general human rights measures

▪ child labour and young workers

▪ forced labour (including human trafficking)

▪ harassment

▪ non-discrimination and the right to equal remuneration (also covering the rights of women, indigenous people, and migrants)

▪ freedom of association (including the right to collective bargaining)

▪ employment conditions

▪ privacy

▪ occupational health and safety

▪ security

▪ local communities (social and economic development based on their specific needs).

Internal Human Rights Assessment


	Countries involved	Employees involved (%)	Employees involved (number)
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, UK, Ukraine, United Arab Emirates, USA	17	5,555
2025	Austria, Bulgaria, France, Germany, Italy, Portugal, Spain, Switzerland	72	25,660

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 Art. 18 of the Guiding Principles on Business and Human Rights, 2011⁽¹⁰⁸⁾ (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 2025, data collected on 100% of 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⁽¹⁰⁹⁾.

⁽¹¹⁰⁾ 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 116

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 for 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⁽¹¹⁰⁾ 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 Internal Audit Plan for 2025 included two human rights audits at the Annonay (France) and Vysoke Myto (Czech Republic) plants, as the

Group deemed it important to confirm that human rights processes are designed and implemented to manage a multicultural context effectively.

The audits confirmed that controls over clear safety information and training, a safe and inclusive workplace, and working hours management are

in place, and emphasised that upholding these standards is essential for safeguarding the rights, wellbeing, and equal treatment of every worker

in an increasingly complex environment. To ensure continuous improvement, management has defined short‑term action plans to address areas

where opportunities for enhancement were identified. These actions will be implemented in close collaboration with the relevant functions, with

progress monitored throughout 2026 to ensure that corrective measures translate into tangible and lasting improvements across the sites

involved.

7.14.2 Incidents and reported matters

For detailed information on any incidents or matters reported through the whistleblowing channels, including discrimination and harassment during

the reporting period, see 11.5 Violations of Business Conduct. In 2025, 241 complaints were reported through Iveco Group's whistleblowing

channels, including 44 cases related to discrimination, harassment, and/or sexual harassment. No incidents from 2025 or the previous year

resulted in fines, penalties, or compensation payments.

Board Report Sustainability Statement 117

8. WORKERS IN THE VALUE CHAIN (S2)

8.1 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').

Some of the expected short-term impacts related to Workers in the value chain were identified as negative and described by stakeholders as

follows: “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”.

Other expected short-term impacts related to Workers in the value chain, on the other hand, were 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. During 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 workers 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.

⁽¹¹¹⁾Leading European business network for corporate sustainability and responsibility.

Board Report Sustainability Statement 118

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. 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 Organisation 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 2025, 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⁽¹¹¹⁾to improve the working conditions of road transport workers as

well as compliance with legislation.

These initiatives are overseen by a dedicated team, which is also responsible for monitoring the suppliers' compliance with the Supplier Code of

Conduct and their sustainability assessment proces s.

⁽¹¹²⁾ See the Conflict-Affected and High-Risk Areas (CAHRAs) list of the European Commission.

⁽¹¹³⁾ See the ‘OECD Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas’.

⁽¹¹⁴⁾ See the ‘OECD Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas’.

Board Report Sustainability Statement 119

8.4 ADDRESSING NEGATIVE IMPACTS AND VALUE CHAIN WORKER CONCERNS (S2-3)

In 2022, Iveco Group established a Compliance Helpline (see 11.3) 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 value 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 2025, sustainability audits were conducted by external auditors at 80 supplier plants worldwide. Corrective action plans were later formulated

for 71 of these to address 745 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 2025, 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 reported. 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 this regard, several initiatives were promoted during the year 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⁽¹¹²⁾, 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⁽¹¹³⁾ (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⁽¹¹⁴⁾.

⁽¹¹⁵⁾ See the Conflict-Affected and High-Risk Areas (CAHRAs) list of the European Commission.

⁽¹¹⁶⁾ Target progress is calculated as a percentage of Iveco Group's annual purchase value (APV).

Board Report Sustainability Statement 120

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 CMRTs 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).

In 2025, 109 suppliers sent their updated CMRTs as per OECD guidelines. 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⁽¹¹⁵⁾. 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 2025, 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 value 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 during the risk assessment.

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%⁽¹¹⁶⁾ of Tier 1 suppliers to be involved in sustainability assessments by year-end 2026

▪ 80 supplier sustainability audits to be executed in 2026

▪ 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.

Board Report Sustainability Statement 121

For further details on:

▪ the target definition process

▪ stakeholder involvement in target setting

▪ the 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 122

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: “The promotion of community

engagement initiatives supports the development of, and value creation for, 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 harm) for any specific

group of affected communities. The Group's approach is to support projects that deliver measurable business and investment benefits to its

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 their development as well

as value creation.

9.2.1 Community Investment Policy

The Community Investment Policygoverns 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 THE CONCERNS OF AFFECTED COMMUNITIES (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 the following 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 a 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 123

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, both positively and negatively, 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 environmental protection, business ethics,

and human rights and working conditions (e.g., to reject all forms of forced and/or child labour).

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 Group's Community Investment Policy, aims at promoting equity, inclusion, and

engagement by focusing on community educational activities and empowering vulnerable groups.

In 2025, the resources allocated by Iveco Group to local communities totalled €3.31 million.

Board Report Sustainability Statement 124

For further details on:

▪ the target definition process

▪ stakeholder involvement in target setting

▪ the 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) used 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 125

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: “Non-compliance with product health, safety, and quality requirements impacts 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

End users represent the final link in the Group's 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 part of Iveco

Group's ongoing commitment and 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

▪ Driver Drowsiness and Attention Warning (DDAW), which assesses the driver's alertness through vehicle systems analysis and generates a

warning if needed

⁽¹¹⁷⁾The European New Car Assessment Programme, which provides European consumers with information on the safety of passenger vehicles.

Board Report Sustainability Statement 126

▪ 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 Organisation's

vehicles 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⁽¹¹⁷⁾, 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 providing prompt

and clear responses 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 improvements to existing product ranges and guide the development of new product lines to meet future market needs. This approach

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 practical advice on the purchasing options that best meet their business needs and

helping them invest the right amount of capital, time, and resources in products and solutions that enhance their productivity. 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 Program, aimed at improving the sales process, and the Digital Job Card

initiative, focused on service delivery. The combined dealer and service network of brands IVECO, IVECO BUS, and ASTRA is made up of about

1,500 sales points and 3,500 service points. The Network Department drives dealership development, empowering the Group's partners to deliver

the best possible experience to end customers. This strategy strengthens the overall network, boosting growth and competitiveness.

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 – and ultimately for all end users – 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.

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

Board Report Sustainability Statement 127

▪ providing information on safe use through Operator's 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).

No significant changes were made to the policy during the reporting year.

10.2.2 Product Safety, Security, and Technical Compliance Policy

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.

As per the 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. 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.

No significant changes were made to the policy during the reporting year.

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 services to fleet managers such as fuel consumption monitoring, mission assignment and planning, route optimisation, and

the monitoring of parameters for safe driving. It also offers on-board systems that generate specific reports on fuel consumption, tyre pressure,

and driving style, which help optimise vehicle performance and on-board safety.

Understanding that the human element is critical to 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 that provide both drivers and fleet managers with 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 drivers' risk awareness and improve safety, so as to reduce accidents and,

consequently, injuries to people and damage to vehicles and transported goods. Safe Driving Reports summarise fleet KPIs in 3 categories:

⁽¹¹⁸⁾ Belgium, Bulgaria, Czech Republic, France, Ireland, Italy, Luxembourg, the Netherlands, Poland, Portugal, Romania, Slovakia, Spain, and the UK.

Board Report Sustainability Statement 128

▪ 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 readily accessible through the IVECO portal.

In 2025, Iveco Group strengthened its strategic collaboration with PlusAI, a company pioneering AI-based virtual-driver software, to advance

highly automated and connected driving solutions. The two companies launched a pilot programme, together with logistics leader DSV, to deploy

vehicles equipped with PlusDrive, an automated driving system, in real-world conditions. The initiative included rigorous safety training and public

road testing to validate system performance and reliability. This programme marks a significant step toward sustainable, technology-driven

transport, helping reduce emissions through optimised driving and paving the way for future commercial deployment.

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⁽¹¹⁸⁾ 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 2025, 16 were related to safety and regulatory matters.

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. Customers can count on Iveco Group's Customer Uptime Centre, which provides support in

68 countries across Europe, Latin America, Türkiye, Australia and New Zealand, and South Africa, in more than 34 languages, handling

approximately 5 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, evolving 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 diagnosis leverages digital twins

(digital models of physical products or systems) to monitor the operational status of several systems, anticipating any issues well in advance and

preventing unplanned stops.

Board Report Sustainability Statement 129

Assistance Non-Stop (ANS) is a round-the-clock, 365 days a year service available to all Iveco Group customers in Europe, Latin America,

Türkiye, Australia and New Zealand, and South Africa, 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.

The Iveco Group Control Room plays a central role in customer assistance. By continuously collecting and analysing real-time data from the on-

board telematics systems of connected vehicles, the Control Room provides actionable insights and remote support. Leveraging advanced

remote assistance and over-the-air (OTA) update capabilities, the team can swiftly address technical issues, implement software enhancements,

and ensure vehicles operate at peak efficiency – all while minimising disruptions for customers and reducing the overall environmental impact.

Furthermore, Iveco Group is expanding its innovative Driver Fidelity Programmes, now with more than 4,000 registered users. These programmes

foster safer, more efficient, and more eco-friendly driving behaviours by utilising a points-based system to calculate each driver's unique Driving

Style Score, with rewards and recognition for exemplary performance. This initiative not only supports individual drivers in their professional

development but also contributes to broader sustainability goals by promoting fuel-efficient, responsible driving across the fleet.

Dealers

Every dealer within each Iveco Group brand's network is required to meet precise qualitative standards specific to that brand, which are an

integral part of the contract that each dealership signs when joining the respective network. Compliance with these standards is verified over time

through regular dealership visits and periodic audits conducted by brand representatives in their area of competence or by third-party auditors.

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 each brand's network. Updates on compliance status are provided to dealership

owners through periodic ad hoc meetings.

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 Organisation’s Product Safety, Security, and Technical Compliance (PSSC) Policy. Its main objective is to maintain high standards in

the prevention of road accidents, reflecting the 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

▪ the 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.

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, through which 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 decision-making 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% improvement in NPS by year-end 2026 (compared to 2021). 2025's results were in line with expectations, given the new

model launches, and the Group remains highly committed to leveraging customer feedback to shift from a reactive approach to a proactive one.

Board Report Sustainability Statement 130

For further details on:

▪ the target definition process

▪ stakeholder involvement in target setting

▪ the 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

Conformity with qualitative standards, outlined in the attachments to dealership contracts, is regularly monitored. For instance, the IVECO Dealer

Network Assessment (IDNA) system 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. The Brand's dealerships across Europe, Africa, and the Middle East are audited by either internal brand specialists or

independent third parties. This reflects the Group's voluntary commitment to dealership excellence, supported by a multi-year rolling process of

annual auditing programmes. This approach ensures superior standards and delivers consistent quality across every touchpoint of the network.

Board Report Sustainability Statement 131

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 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 and 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, and reflects a 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 Code of Conduct addresses

key 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, shape its culture in conducting business, and define the standards of quality and integrity expected from anyone collaborating with

the Organisation. It also 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.

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, available in 8 languages (Czech, English, French, German, Italian, Portuguese, Spanish, and Turkish), can be viewed and

downloaded from Iveco Group's corporate website and Intranet, with hard copies circulated internally as needed.

For information on Iveco Group's system for monitoring the Code of Conduct and compliance policies, see 11.3 Business Conduct and Corporate

Culture.

Board Report Sustainability Statement 132

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 other 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 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 the Code of Conduct and compliance policies, see 11.3 Business Conduct and Corporate

Culture.

Board Report Sustainability Statement 133

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 other 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 engagement and lobbying activities', and supports the Group in achieving its sustainability targets and ambitions.

The policy 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

⁽¹¹⁹⁾ See the Compliance Helpline section on the corporate website.

Board Report Sustainability Statement 134

▪ 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. 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, 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⁽¹¹⁹⁾, 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 the following 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 a 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 designed 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 communications campaigns targeting employees worldwide.

Board Report Sustainability Statement 135

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 of the European Union, 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. The IOS 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 2025, 23 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 2025, the Group disclosed the results of 22 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 action plans to improve internal control procedures or through appropriate disciplinary action.

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 182 third-party dealer audits.

Periodic Audits by Type

(number)


	2025	2024
Regulatory compliance	21	15
Whistleblowing	1	2
Dealers	182	90
Total	204	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, in compliance with the corporate Competition Policy and Guidelines.

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.

Board Report Sustainability Statement 136

In 2025, in line with previous years, the Group continued to execute its Competition Compliance Programme, designed 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 encompasses a specific Competition Policy and the related Guidelines, overseen by the

Antitrust Unit of the Legal, Compliance & Corporate Governance (LC&CG) Department and available on the corporate website. Both documents

include a set of relevant practical examples of behavioural expectations, by subject matter, in the form of 'Dos & Don'ts', and apply to all directors,

officers, and employees, as well as to those acting for or on behalf of all Iveco Group companies worldwide. They set 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.

Since 2024, the Group has also provided a dedicated channel for raising antitrust concerns and questions about behavioural expectations directly

with the Antitrust Unit, so as to ensure they are addressed promptly and appropriately.

In line with 2025's business priorities, specific ad hoc antitrust training sessions were provided to 566 employees involved in various strategic

business partnerships worldwide – including Clean Team workshops where required by applicable antitrust law. Furthermore, the Antitrust Unit

collaborated with other LC&CG functions to prepare, participate in, and deliver 5 integrated Legal & Compliance Dialogues with Dealers in Italy,

Spain, and Poland, addressed to the dealer networks of the Trucks and/or Powertrain business units. These dialogues centred on the Iveco

Group Code of Conduct and on anti-corruption, antitrust, privacy, and trade compliance topics, serving as a continuation of the Competition Law

Dialogues held annually by the Antitrust counsels, with relevant business leaders, on key topics and potential issues identified under the

Competition Compliance Programme. The Programme, and in particular its Competition Policy and Guidelines, also sets out the rules and

principles for managing M&A transactions and dealings with antitrust authorities, including in the context of potential investigations.

The Antitrust Unit, in coordination with the other functions within the LC&CG Department, continued to conduct ongoing compliance risk

assessments in line with business strategy and needs, working alongside Enterprise Risk Management & Internal Audit Department. The Group

intends to maintain this approach in 2026 and beyond, focusing each year on selected jurisdictions for targeted, business-specific training

initiatives that complement 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, Human Resources, or the Legal, Compliance & Corporate Governance (LC&CG) Department, 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 avoid 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.

⁽¹²⁰⁾The course was assigned to all senior employees (managers and above).

Board Report Sustainability Statement 137

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. The IOS 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.

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 formal policy on employee training and development (planned for future reporting cycles), it regards

training as fundamental, delivering it through a dedicated platform called ON LEARN (for more information, see 7.11.3 Learning and

Development).

The 2025 Code of Conduct training course – Guided by Iveco Group Values: Living the Code of Conduct – was developed to reinforce the

Group's mission and five core Values through practical scenarios. The course covers relationships with employees and other stakeholders,

fundamental principles of business conduct, and the employees' role in promoting a compliance culture. It was made available to 12,441

employees worldwide and was mandatory for all newly hired employees.

The Group also delivered several targeted compliance training sessions on the main issues identified via risk assessments, including:

▪ Acting on Behalf of the Company – Rules and Tips⁽¹²⁰⁾

▪ Privacy and AI: Act Responsibly

▪ How to Recognise and Manage Corruption and Fraud.

Every year, the members of the Board of Directors and 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 could violate the Conflict of Interest Policy. The employee categories covered

in 2025 were managers (all functions), all Procurement employees, and all Sales employees (eligible for the Sales Incentive Plan, or SIP). The

aforementioned employee categories are considered to be at higher risk, and are thus required, on an annual basis, to declare any personal

interests that could violate the Conflict of Interest Policy and to formally acknowledge the Code of Conduct.

High-risk categories for anti-corruption are identified using a thorough multi-criteria approach, incorporating key legislation and guidelines (such as

the AFA-Sapin II Act, DOJ-FCPA, and SFO-UK Bribery Act), internal risk mapping and assessments, an internal review of Compliance Helpline

and audit reports, and regional exposure assessments based on the Corruption Perception Index. Based on this analysis, the Bus Business Unit

was identified as the area most exposed to corruption risk in 2025, with targeted training provided to employees holding significant decision-

making authority (managers and above).

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 both. 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 requirement for all employees.

In 2025, an online anti-corruption course was delivered globally to all employees (salaried and above).

In addition, targeted anti-corruption training was provided to the functions identified as high-risk in the aforementioned risk assessment. These

targeted sessions were conducted between May and September 2025, both in person and remotely via Microsoft Teams, achieving a global

participation rate of 80% (99 trained out of 124 invited). The course was designed to actively engage employees and help them understand

corruption risks in day-to-day business operations, using videos, interactive scenarios, AI-powered quizzes, digital tools, and live roundtables. It

covered the definition of anti-corruption and its regulatory framework, the differences between public and private corruption, influence peddling,

and the many impacts of corruption at global, company, and individual level (i.e., the consequences for employees involved in misconduct and the

repercussions for the Group). The course also covered Iveco Group's internal compliance framework designed to prevent corruption, with a focus

on the Anti-Corruption Policy and on topics such as gifts and entertainment, third-party due diligence, conflict of interest, and the whistleblowing

system for reporting misconduct.

Board Report Sustainability Statement 138

Anti-Corruption Training


	2025			2024
	At-risk functions	Managers	All other employees	Managers	All other employees
Training coverage
Total employees with access to training (number)	124	2,117	9,639	2,187	10,018
Total employees who completed training (number)	99	1,831	8,487	2,094	9,391
Delivery method and duration
Online training (minutes)		20	20	15	15
In-person training (minutes)	120
Frequency
How often training is required	Biennially	Annually	Annually	Annually	Annually
Topics covered
Definition of bribery	Yes	Yes	Yes	Yes	Yes
'Things of value' that may be construed as attempts to corrupt	Yes	Yes	Yes	Yes	Yes
National and international anti-bribery and anti-corruption laws	Yes	Yes	Yes	Yes	Yes
Facilitating payments	Yes	No	No	Yes	Yes
Third-party due diligence	Yes	Yes	Yes	Yes	Yes
Conflict of interest	Yes	No	No	Yes	Yes
High-risk third parties (i.e., agents, intermediaries, consultants)	Yes	Yes	Yes	No	No
Consequences of corruption	Yes	Yes	Yes	Yes	Yes
Speak Up channels	Yes	Yes	Yes	Yes	Yes

11.5 VIOLATIONS OF BUSINESS CONDUCT (G1-4)

In 2025, the Group responded to and/or investigated 241 new matters, reported through the Compliance Helpline (58% of which anonymously).

Compliance Helpline Reported Matters

(number)


Matters by category	2025	2024
Questions related to specific business activities and/or Group policies	9	10
HR issues, including but not limited to general workplace conflicts	101	106
Discrimination and harassment (including sexual harassment)	44	50
Business conduct	59	42
Corruption and bribery	2	6
Health, safety, and environment	9	9
Conflict of interest	8	10
Customer data privacy	0	0
Money laundering and/or insider trading	0	0
Accounting and internal controls	3	1
External relationships	1	0
Other^(a)	5	2
Total	241	236

^(a) From the reports received, it was not possible to determine the category to which these cases should be assigned.

Board Report Sustainability Statement 139

Substantiated Matters

(number)


Matters by category	2025
HR issues, including but not limited to general workplace conflicts	21
Discrimination and harassment (including sexual harassment)	11
Business conduct	9
Corruption and bribery	1
Health, safety, and environment	1
Conflict of interest	1
Customer data privacy	0
Money laundering and/or insider trading	0
Accounting and internal controls	1
External relationships	0
Total	45

The one case in the corruption and bribery category involved several allegations and was found to be partially substantiated, meaning that only

some of the allegations were corroborated. The allegation specifically relating to bribery, deemed to be the most serious and the basis on which

the case category was assigned, was found to be unsubstantiated.

Disciplinary Approach to Substantiated Breaches of the Code of Conduct or Corporate Policies

(number)


Type of disciplinary action	2025	2024
Termination of employment	14	9
Disciplinary action	25	27
Coaching, remedial training, organisational changes, or review of the relevant policy/process	6	12
No action necessary^(a)	0	1
Total	45	49

^(a) The implicated employee voluntarily left the Group.

In 2025, there were no reported legal cases related to bribery or corruption, and no convictions or fines were issued for violations of anti-

corruption or 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.

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

within the framework of a risk-based approach.

⁽¹²¹⁾ Compliance policies are available in the 'Compliance and Ethics' section of the Group's Intranet portal.

Board Report Sustainability Statement 140

11.6 POLITICAL INFLUENCE AND LOBBYING ACTIVITIES (G1-5)

Iveco Group's participation in shaping both public policy and regulations on issues that affect its business and the communities in which it

operates is essential for developing workable, high-level international standards and guidelines, which in turn helps safeguard the value of its

investments. This type of engagement, combined with the promotion of public-private partnerships, is also crucial to identifying innovative, shared

sustainability solutions built on such 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 operational 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 its Policy for US Lobbying

Activities, which are compliance policies⁽¹²¹⁾ 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

its 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 sector associations, and of national and international advocacy organisations, in which it plays a

significant role. In 2025, Iveco Group's total membership fees for trade associations, lobbying activities (including climate-related), etc. was €1.74

million globally.

Memberships, Contributions, and Other Expenditures

(€ million)


	2025	2024
Trade associations or tax-exempt groups^(a)	1.7	1.6
Lobbying, interest representation^(b)	—	—
Political parties (campaigns/candidates)	—	—
Total	1.7	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.

⁽¹²²⁾ Initiative of the European Commission and Hydrogen Europe.

Board Report Sustainability Statement 141

The three largest fees were paid to the European Automobile Manufacturers' Association (ACEA), for approximately €757,000 (of which €71,000

for technical studies), the American Engine Manufacturers Association (EMA), for approximately €119,000, and the Asociación Española de

Fabricantes de Automóviles y Camiones (ANFAC), for approximately €83,000.

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., renewable fuels like biomethane and HVO, 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 2025, to foster both public debate and policy making on the most material sustainability matters, particularly on tackling climate change, the

Group organised and actively participated in numerous 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 addressing 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 for

supportive measures, enabling conditions, and a consistent policy framework, which are essential drivers of the energy transition in road

transport.

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⁽¹²²⁾ 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.

⁽¹²³⁾ Target progress is calculated as a percentage of Iveco Group's annual purchase value (APV).

Board Report Sustainability Statement 142

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 developing policies to reduce carbon emissions and establishing 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 2025, no contributions were made to Political Parties. Furthermore, no Board member had 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.

Iveco Group's purchases are managed by its Group Procurement function within the Quality & Operations Department, 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 ESG

& Compliance team (established within the Quality & Operations Department) is responsible for monitoring suppliers' ESG performance and for

driving improvements in environmental and social stewardship through the sustainability assessment process.

Two strategic sustainability targets for suppliers were incorporated into Iveco Group's Strategic Business Plan:

▪ 100%⁽¹²³⁾ of Tier 1 suppliers to be involved in sustainability assessments by year-end 2026

▪ a 30% reduction in absolute CO2 emissions generated by major suppliers of purchased goods and services by year-end 2030 (compared to

2022)

▪ 2026: execution of 80 supplier sustainability audits.

For further details on:

▪ the target definition process

▪ stakeholder involvement in target setting

▪ the 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.

⁽¹²⁴⁾ Local suppliers are those operating in the same country as the Iveco Group plant in question.

⁽¹²⁵⁾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 89% of the total value of purchases.

Board Report Sustainability Statement 143

To ensure the consistent alignment of the Group's supply chain and purchasing practices with the Supplier Code of Conduct, an Ethical Check is

conducted on new suppliers and repeated periodically for all existing ones. 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.

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, during the year, Iveco Group continued to implement a number of well-established initiatives targeting those employees responsible for

supplier relationships, e.g., the Procurement function, raising awareness of sustainability and good governance among suppliers through open

and ongoing dialogue. These initiatives included the development of targeted training modules, focusing on topics such as:

▪ Iveco Group's sustainable procurement strategy

▪ EU regulations (on deforestation, batteries, and carbon border adjustment, respectively EUDR, EUBR, CBAM) impacting the Group's supply

chain

▪ Iveco Group's decarbonisation strategy and projects.

Supplier Profile

Iveco Group manages purchases worth above €8.6 billion and a network of 1,790 direct material suppliers. In 2025, 30 new eligible suppliers

were assessed to join 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 75% 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


	2025	2024
Direct and indirect material purchases (% of the total volume of Iveco Group purchases)	90	90
Direct material suppliers (number)	1,790	1,966
Value of purchases from direct material suppliers (€ billion)	6.76	7.15
Value of purchases from indirect material suppliers (€ billion)	1.02	1.03
Local suppliers (%)	97	96

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⁽¹²⁴⁾: in 2025, the contracts signed with them by Iveco Group accounted for 97% of its procurement

costs. Furthermore, 89% of these contracts were signed in Europe, which is the primary location of operation⁽¹²⁵⁾.

Still in 2025, the Group performed a detailed financial assessment of its supplier base (which will be conducted regularly) to monitor and mitigate

financial risk. It involved 949 suppliers (accounting for approximately 53% of direct material purchases) in the following categories:

▪ casting, forging, and machining: 15%

▪ cabs: 27%

▪ chassis: 24%

▪ emerging technologies and electrical components: 17%

▪ emission-relevant technologies: 16%.

Of the suppliers involved in the assessment, 94% were in Europe and 6% in South America.

⁽¹²⁶⁾ Competitiveness, time readiness, quality, time delivery, and ESG & compliance.

Board Report Sustainability Statement 144

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, as reflected by the environmental requirements (e.g., regarding emission factors)

integrated into the Request for Quotation (RfQ) phase.

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 existing 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 provides for 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 2025, 30 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.

Supplier Performance Monitoring

Iveco Group monitors supplier performance via the Supplier Holistic Scorecard, a new dashboard designed to provide a comprehensive overview

of suppliers. It is structured around two main categories – Performance and Onboarding – with KPIs grouped into 5 clusters⁽¹²⁶⁾, then normalised

and weighted.

The dashboard also features a dedicated 'ESG & Compliance' cluster, including KPIs related to sustainability and compliance. This allows

monitoring suppliers' adherence to the highest environmental, social, and governance (ESG) standards, further supporting the Group's strong

commitment to sustainability. Additionally, it enhances 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 deal

with sustainability matters, so as to enhance communication and ensure it is effective and transparent.

The supplier assessment process is performed annually, managed by the ESG & Compliance function and overseen by the Quality & Operations

Department. It involves 3 steps over the year:

▪ step 1: supplier ESG disclosure and assessment (via the Open-es platform)

▪ step 2: supplier ESG risk evaluation

▪ step 3: supplier ESG audits by a third party and development of improvement plans, if needed.

⁽¹²⁷⁾Suppliers posing a substantial risk in terms of negative ESG impacts and/or identified as being of significant business relevance to Iveco Group.

⁽¹²⁸⁾ Selected based on an annual purchase value (APV) of over €500,000 per supplier.

⁽¹²⁹⁾Percentage calculated with reference to direct material purchases from suppliers for which the Group's annual purchase value (APV) exceeds €500,000 per supplier.

Board Report Sustainability Statement 145

During the first step of the evaluation process, suppliers are asked to fill out an ESG 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 (Open-es score) are analysed and

used by the Group to perform an ESG risk assessment, based on specific criteria, enabling the identification of critical suppliers⁽¹²⁷⁾ whose

compliance with ESG requirements needs to be addressed through additional actions, follow-ups, and/or auditing.

Throughout the year, the Group continued to engage its direct material suppliers to join the Open-es platform, bringing the total number of

registered suppliers to 596⁽¹²⁸⁾, representing approximately 92% of Iveco Group's direct material purchases⁽¹²⁹⁾.

2025 Analysis of Supplier Assessment Questionnaires


	Number of suppliers identified as having significant actual and/or potential negative impacts ^(a)	Significant actual and/or potential negative impacts
Environmental aspects	7	Lack of information regarding: ▪ climate change strategy ▪ water management ▪ monitoring of pollution ▪ circular economy
Social aspects	1	Lack of information regarding: ▪ materiality assessment and social impacts ▪ ESG strategy in the value chain

^(a) Out of 124 suppliers that had completed over 50% of the Open-es questionnaire and for which the Group's annual purchase value (APV) exceeds €500,000 per supplier.

ESG audits represent the third step of the ESG evaluation process. They are organised in agreement with the suppliers, and performed on site at

their plants by independent external auditors. Iveco Group, together with the auditors, has developed a checklist of all relevant sustainability-

related aspects; should these reveal critical issues to be addressed, 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 2025, the ESG audits conducted by external auditors took place at 80 supplier plants worldwide.

Audits by Geographic Region

(number)


	2025	2024
Europe	57	59
South America	21	13
Rest of World	2	12
Total	80	84

Globally, the total audits performed covered approximately 9.3% of Iveco Group's total purchase value.

⁽¹³⁰⁾ Formerly 'Officine Grandi Riparazioni', a historic industrial complex restored and turned into a multipurpose hub for culture and innovation.

Board Report Sustainability Statement 146

In 2025, 71 suppliers (representing 88% of those audited during the year) were required to address areas in need of improvement through

corrective measures. Across these suppliers, a total of 745 findings were identified as requiring follow-up, corresponding to 23% of the total

checks performed. For all suppliers identified as having significant actual and/or potential negative impacts, Iveco Group agreed on a number of

corrective action plans, as indicated in the following table. It should be noted that the increase in the number of action plans compared to 2024

was due to the adoption of an updated audit checklist more closely aligned with Open-es requirements, which place greater emphasis on

environmental topics. No critical issues were identified during the audits; 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 ESG & Compliance function.

In the event of defaulting suppliers, further corrective actions are defined and implemented in agreement with the Group's relevant internal

departments.

2025 Analysis of Corrective Action Plans


	Number of action plans identified	Main action plan topics
Environmental	295	▪ GHG monitoring and definition of GHG emission reduction targets ▪ evaluation of energy efficiency and sources, alongside energy monitoring ▪ development of eco-design concepts for product reuse, recycling, repair, and refurbishment ▪ product life cycle assessments (LCA) and product carbon footprint (PCF)
Social	116	▪ policies and/or guidelines for managing diversity, inclusion, and equal opportunities ▪ employee training hours (%) by contract type and by gender, including ESG training ▪ availability of grievance channels to report cases of discrimination or human rights violations ▪ trends in new hires and employee turnover
Governance	217	▪ awareness raising across the supply chain ▪ integration of ESG aspects into supplier selection ▪ measurement of ESG performance based on appropriate standards ▪ anti-corruption policies and procedures
Additional specific requirements	117	▪ supplier Open-es level and ESG rating results ▪ environmental management system or other ESG certifications in place

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 is the main collaboration and communication platform used by Iveco Group to interact with its supply chain,

providing access to forms, documents, and tools 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 2025, the Group strengthened its collaboration with suppliers by putting on two significant events. On 13 May, it hosted Excellence Without

Compromise at the Iveco Group Industrial Village, in Turin (Italy), welcoming more than 100 suppliers to share insights into the Organisation's

vision, technology, product roadmaps, and commitment to driving execution. The event marked an important step in advancing partnerships and

fostering joint success. Building on this momentum, from 12-15 June, the Group celebrated IVECO's 50th Anniversary at OGR Torino⁽¹³⁰⁾,

honouring the Brand's rich Italian heritage and its evolution into the company it is today. Meanwhile, on 13 June, suppliers were engaged in an

Operations Roundtable and a Supplier Awards session, underscoring the Organisation's dedication to elevating partnerships to a transformational

level. These initiatives reflect an ambition to create a more competitive and agile business, where every supplier plays a pivotal role in achieving

shared goals. Additionally, a webinar was held for the supplier base of Brand FPT to provide insights into procurement, manufacturing, and

quality, sharing key information while raising awareness of the Powertrain 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 2 events held in Europe and 22 in South America.

Building on the initiatives launched in 2024 to strengthen Iveco Group's sustainability strategy and reduce supply chain emissions, January 2025

marked a significant milestone, with over 60 steel suppliers – providing both raw materials and finished components – participating in a dedicated

webinar focused on the Group's decarbonisation strategy, starting with steel, the single largest contributor to its Scope 3 Category 1 emissions.

Board Report Sustainability Statement 147

As part of the Organisation's ongoing ESG assessment efforts, a webinar was held in June 2025 on the Open-es platform and its assessment

process. The session was specifically designed for all suppliers who had participated in the 2024 disclosure, to ensure alignment and clarity on

expectations moving forward.

Additional compliance-focused training sessions were conducted to address key EU regulations impacting suppliers and their supply chains,

including the EU Deforestation Regulation (EUDR) and the Carbon Border Adjustment Mechanism (CBAM).

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 South America, several initiatives were implemented in 2025 to strengthen relationships and engagement with local suppliers, with a focus on

building strategic and sustainable partnerships. For example, 3 webinars were held to provide clarifications, strategic alignment, and engagement

opportunities while sharing best practices, receiving positive feedback from the local supplier network.

September saw the 2025 Supplier Meeting LATAM, now in its fourth consecutive year, establishing itself as one of the main strategic meetings in

the region. The initiative brought the main suppliers from Brazil and Argentina together with Iveco Group's senior management, to strengthen

partnerships, share knowledge, present market updates and new projects, and acknowledge local initiatives aligned with the Group's global pillars

of excellence. One of the central themes was the presentation of Iveco Group's new Quality & Operations Department, highlighting its mission to

ensure excellence without compromise and to strengthen integration with the supply chain. During the meeting, Iveco Group leaders also shared

strategic messages to guide actions in the region, addressing topics such as resilience in the face of volatility, the energy transition, efficiency,

and sustainability. In addition, themed panels were held to discuss 4 fundamental pillars – sustainability, customer experience, proactivity, and

reliability – providing insight into ways to include recyclability criteria, anticipate challenges, innovate procurement processes, and maintain global

quality and safety standards.

An event highlight was the recognition of suppliers that excelled in the 4 new strategic categories: Driving Experience, Driving Reliability, Driving

Proactivity, and Driving Sustainability. For the latter, a specific webinar was held to reinforce the Group's ESG pillars and encourage suppliers to

present projects aligned with sustainability priorities. 31 projects were submitted by 25 suppliers covering key areas such as Inclusion and

Engagement (7), Zero Carbon (10), Product Life Cycle Perspective (8), and Safety at Work (6), reflecting the joint commitment to responsible

innovation and sustainable development.

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 22 of the

above-mentioned projects submitted by suppliers in South America, including the following 2 key initiatives:

▪ Supplier Meeting and IVECO S-WAY Benchmarking Workshop in Argentina

In Argentina, a Supplier Meeting brought together top local partners for a strategic meeting focused on exploring potential cost reductions for both

existing products and new projects, as well as crucial topics such as NexPro aftermarket solutions, sustainability, and localisation. The event

included the IVECO S-WAY Benchmarking Workshop, held to identify cost optimisation opportunities and key competitiveness.

▪ NEF Workshop in Brazil

The NEF Engines Workshop was held at the FPT Engineering Center in Contagem, bringing together more than 80 suppliers for practical

discussions with the Engineering, Purchasing, and Quality teams, resulting in the identification of 679 opportunities for cost optimisation and

localisation (e.g., the regional production of components).

These initiatives reflect the Group's commitment to strengthening relationships with its suppliers and to seeking solutions that drive

competitiveness, sustainability, and efficiency across South America.

Payment Practices

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 67 days starting from the invoice date (70 in 2024); 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).

Board Report Sustainability Statement 148

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 77

days (81 in 2024). This average reflects the Group's performance across all supplier categories, including small- and medium-sized enterprises

(SMEs).

In 2025, no material legal proceedings were initiated concerning claims for late payments to suppliers.

Board Report Complementary Information 149

COMPLEMENTARY INFORMATION

1. PLANT IMPACT MANAGEMENT

1.1 ADDITIONAL INFORMATION ON PLANTS

The plants included in the Focus Area reporting scope (see 1.1 General Basis for the Preparation of the Sustainability Statement) are certified as

per the following table.

2025 Plant Certifications

Focus Area


Country	Plant	Business Unit^(a)	Primary functions	Quality	Safety	Environment	Energy
Country	Plant	Business Unit^(a)	Primary functions	ISO 9001 or IATF 16949	ISO 45001	ISO 14001	ISO 50001
EUROPE
Czech Republic	Vysoke Myto	Bus	Buses (city, intercity)	Yes	Yes	Yes	Yes
France	Annonay	Bus	Buses (coaches, city)	Yes	Yes	Yes	Yes
France	Bourbon-Lancy	Powertrain	Engines (heavy)	Yes	Yes	Yes	Yes
France	Rorthais	Bus	Buses (city)	Yes	Yes	Yes	Yes
Italy	Bolzano	Defence	Defence vehicles	Yes	Yes	Yes	Yes
Italy	Brescia	Truck	Medium vehicles, cabs, chassis	Yes	Yes	Yes	Yes
Italy	Foggia	Powertrain	Engines (light), drive shafts	Yes	Yes	Yes	Yes
Italy	Piacenza	Defence	Quarry and construction vehicles	Yes	Yes	Yes	Yes
Italy	Suzzara	Truck	Light vehicles	Yes	Yes	Yes	Yes
Italy	Torino Driveline	Powertrain	Transmissions, axles	Yes	Yes	Yes	Yes
Italy	Torino Motori	Powertrain	Engines (heavy)	Yes	Yes	Yes	Yes
Italy	Vittorio Veneto	Defence	Components	Yes	Yes	Yes	Yes
Spain	Madrid	Truck	Heavy vehicles	Yes	Yes	Yes	Yes
Spain	Valladolid	Truck	Light vehicles, heavy cabs components	Yes	Yes	Yes	Yes
SOUTH AMERICA
Argentina	Cordoba	Truck	Medium and heavy vehicles	Yes	Yes	Yes	Yes
Argentina	Cordoba	Powertrain	Engines (heavy)	Yes	Yes	Yes	Yes
Brazil	Sete Lagoas	Truck	Light, medium, and heavy vehicles	Yes	Yes	Yes	Yes
Brazil	Sete Lagoas	Defence	Defence vehicles	Yes	Yes	Yes	Yes
Brazil	Sete Lagoas	Powertrain	Engines (light, medium, and heavy)	Yes	Yes	Yes	Yes
REST OF WORLD
China	Chongqing	Powertrain	Engines (light, medium, and heavy)	Yes	Yes	Yes	Yes

^(a) Iveco Group's business units comprise the brands indicated in brackets: Truck (IVECO); Powertrain (FPT); Bus (IVECO BUS, HEULIEZ); Defence (IDV, ASTRA).

To promote and disseminate the principles of continuous improvement across quality, environmental, safety, and energy management within the

Organisation, a number of targeted training tools are in place for its people (see 7.11.3 Learning and Development).

Board Report Complementary Information 150

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 on the land and surrounding ecosystem.

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 advanced 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 Organisation-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.

Environmental Impacts Covered by Iveco Group's LCA and Environmental Management Systems


RESOURCE USE
Abiotic depletion (fossil fuels, minerals)
Land use
Water depletion
ECOLOGICAL CONSEQUENCES
Acidification
Dust & particulate matter
Ecotoxicity
Eutrophication
Global warming
Ozone depletion
Photochemical ozone formation
Species richness
HUMAN HEALTH
Human toxicity
Ionising radiation

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 2025, the Group's environmental protection initiatives accounted for €2.6 million in investments in capital expenditures (CapEx) and €595,000

in operational expenditures (OpEx), with part of these investments linked to projects from previous years.

Similarly, expenditures relating to energy projects totalled €2.95 million in CapEx and €260,000 in OpEx, including allocations for ongoing

projects. Notably, the efficiency initiatives introduced during the year generated annual cost savings of approximately €1.12 million, with an

estimated simple payback period of around 2 years.

⁽¹³¹⁾ For the complete list of plants, see 1.1 General Basis for the Preparation of the Sustainability Statement.

Board Report Complementary Information 151

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. As at year-end 2025, all 20 plants within the scope of

the Focus Area⁽¹³¹⁾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.

With regard to energy management, as at the end of 2025, all 20 plants within the Focus Area reporting scope 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, resulting in more efficient energy use, cost savings, and fewer GHG emissions. These efforts

also apply to other sites beyond the Focus Area, such as those in San Mauro Torinese (Italy), Garchizy (France) and, as of 2025, Ulm (Germany).

1.1.5 Engagement and awareness activities

Iveco Group implements specific awareness-raising activities in its effort to promote and disseminate the principles of continuous improvement

and environmental management both within and beyond corporate boundaries. During the year, initiatives to engage its people included

awareness training focused on: water efficiency management programmes, wastewater and chemical product management, waste sorting, and

waste reduction and reuse, the latter including the production of items subsequently donated to local communities.

Meanwhile, initiatives carried out with local authorities and schools involved promoting eco-design activities and donating engines to technical

schools for use as teaching aids.

In 2025, a total of 14,904 hours of environmental training was delivered to employees, including 14,105 hours of on-the-job training for 13,634

individuals (91% of whom were hourly) representing 38% of the global employee headcount. With regard to energy efficiency, approximately

2,200 hours of training were provided (mainly by in-house professionals) to more than 3,200 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.

3 courses on the Quality Management System were delivered to employees in 2025: Auditor ISO 9001, IATF 16949 Auditor, and training on the

new Supplier Holistic Scorecard.

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 2025, no significant releases of potentially contaminating substances

were recorded.

Board Report Complementary Information 152

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 153

2025 Plants Near, Bordering or Within Protected(a) or High-Biodiversity Areas

Group-Wide


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)

^(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.

^(c) Plant implementing the BVI methodology that is near, bordering or within protected or high-biodiversity areas.

⁽¹³²⁾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.

⁽¹³³⁾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 in the past

as plasticisers, fire retardants, and in various types of coating.

Board Report Complementary Information 154

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⁽¹³²⁾or PCTs⁽¹³³⁾ are

present in the operations carried out across the Organisation. In 2025, 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 2025, 19 plants were participating in the programme, accounting for

57% 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 2025, more than 49,000 employee suggestions were collected

across the plants where DOT principles are applied. Furthermore, more than 1,900 DOT projects were implemented throughout the year,

generating more than €69 million in savings.

Board Report Complementary Information 155

2. DRIVING INNOVATION ACROSS THE PRODUCT

LIFE CYCLE

Iveco Group's core business is the design, manufacture, and sale of trucks, commercial vehicles, buses, specialty vehicles, and powertrain

applications. The Organisation's ongoing research into cutting-edge solutions and its collaboration with innovative partners enable its 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 meets market demand by delivering products closely

aligned with customer requirements, particularly focusing 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 2025, Iveco Group's R&D expenditure was €672 million, or 5.1% of net revenues from industrial activities, which totalled €13,129 million. R&D

involved approximately 3,600 employees at 28 sites worldwide, with approximately 250 of them located at 6 sites in Emerging Markets. For more

information on R&D, see the 'Research and Development' section in this Annual 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).

Low-Carbon Products


Type	Product	2025 Total net revenues ^(a) (%)	2025 Estimated emissions avoided (tCO₂eq)	Comment
Low-carbon products	IVECO E-WAY IVECO CROSSWAY ELEC (buses)	31.9	166,829	▪ Zero-emissions electric buses and coaches
Low-carbon products	IVECO eDAILY (light vehicle)	1.8	166,829	▪ Zero-emissions electric IVECO Daily
Products that enable third parties to avoid emissions	IVECO WAY Model Year 2024 4x2 5LH (heavy vehicle)	31.4	269,233	▪ Diesel version Model Year 2024, delivering -8.8% in CO2 emissions vs its previous version
Total			436,062

^(a) Refers to the respective business unit. For more information on revenues, see 'Business Overview' in this Annual Report.

Data Calculation Methodology

The total reported CO2 emissions were estimated using an internal methodology that accounts for the number of vehicles sold in 2025, 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.

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.

Board Report Complementary Information 156

In Europe, the main academic partnerships include those with the following universities: Politecnico di Torino, Politecnico di Milano, Università

degli Studi di Torino, Università di Genova, Università di Modena e Reggio, and Università Tor Vergata di Roma (Italy); Univerza V Ljubljani

(Slovenia); ETH Zurich (Switzerland); Technische Universität Berlin (Germany); Technische Universiteit Eindhoven (the Netherlands); Vrije

Universiteit Brussel (Belgium); Universitat Politècnica de València (Spain); 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 revolves

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.

Academic partnerships outside Europe include those with Universidade Federal de Minas Gerais (UFMG) and Pontifícia Universidade Católica de

Minas Gerais (PUC-MG) in Brazil; the Swinburne University of Technology in Australia; and the University of Michigan and University of California,

Riverside in the USA.

Open Innovation

In recent years, to further strengthen its R&D efforts, Iveco Group has embraced a much broader approach to innovation by taking an active role

in the Open Innovation arena. This has involved expanding its network beyond universities to include new, innovative entities, as well as actively

engaging 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 the Organisation 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 and onboarding process, helping it identify the most interesting startups from the wide spectrum with which it engages each year.

To seize the best growth and collaboration opportunities, the Group has developed a comprehensive set of tools to participate as a venture client

in the co-development of pilot projects as a preliminary stage to establishing actual partnerships. This approach speeds up the implementation of

new technologies while indirectly supporting the growth of the startups with which the Group collaborates.

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. 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 continued to explore 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.

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.

⁽¹³⁴⁾ In line with Directive 2005/64/EC of the European Parliament and of the European Council, in 2025, 85% of products sold met reusability and recyclability criteria.

Board Report Complementary Information 157

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. Iveco Group is committed to reducing or eliminating from its products and manufacturing operations those

regulated substances that pose a potential risk to human health and the environment. 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 LCAs on several of its vehicles and engines to date. Given the lack of an official regulatory framework, 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 LCAs performed to date cover the vast majority of products from the Truck and Bus business units. Specifically, the LCA for the

IVECO Daily covers approximately 67% of all Truck Business Unit volumes.

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 ▪ IVECO U-WAY CNG 12m	▪ ISO 14025:2006 (EPD) ▪ ISO 14025:2006 (EPD) ▪ ISO 14025:2006 (EPD) ▪ ISO 14025:2006 (EPD) ▪ ISO 14040:2006; ISO 14044:2021
▪ FPT F1C diesel engine (light range) ▪ FPT F1C natural gas engine (light range)	▪ ISO 14067:2018 ▪ ISO 14067:2018
▪ FPT Cursor 13 diesel engine (heavy range)	▪ ISO 14067:2018
▪ FPT E37 Battery	▪ ISO 14040:2006; ISO 14044:2021; PEF
▪ IVECO Daily diesel ▪ IVECO eDaily	▪ ISO 14040:2006; ISO 14044:2021 ▪ ISO 14040:2006; ISO 14044:2021
▪ IVECO S-WAY XC13 engine	▪ ISO 14040:2006; ISO 14044:2021

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⁽¹³⁴⁾, 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 engines and transmissions include a 36-month warranty, which is three times the warranty period of original

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, in addition to a full range of original spare parts to cover the entire life cycle of many of its products,

the Group's portfolio also includes a broad selection of remanufactured components, offering like-new quality, extended warranties, and good

value, since remanufactured parts save customers an average 30% on list price.

Board Report Complementary Information 158

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 2025, the net sales from remanufactured components were 7.3% at global level

and 9.0% at European level.

End-of-Life Cycle


	2025	2024
Percentage^(a)of parts reused or recycled (%)	41.2	31.4
Financial benefit from take-back programmes (€ million)	126.3	113.0

^(a)Number of spare parts returned by the Group brands' networks for reuse/recycling as a percentage of the total number of spare parts eligible for remanufacturing.

Board Report Selected Financial Data 159

REPORT ON OPERATIONS

SELECTED FINANCIAL DATA


(€ million)	2025(*)	2024(*)	2023(*)	2022(**)	2021(***)
Net revenues	13,428	14,417	15,978	14,357	12,651
EBIT	538	729	866	466	295
Profit/(loss) before taxes	316	537	423	260	180
Profit/(loss)	234	489	268	159	76
Attributable to:
Owners of the parent	234	486	248	147	52
Non-controlling interests	—	3	20	12	24
Basic earnings/(loss) per common share (€) ⁽¹⁾	0.88	1.82	0.92	0.54	0.19
Diluted earnings/(loss) per common share (€) ⁽¹⁾	0.88	1.79	0.91	0.54	0.19
Investments in tangible and intangible assets	775	914	961	777	563
of which: capitalised R&D costs	445	460	480	390	271
R&D expenditure⁽²⁾	672	778	867	634	509
Total Assets	18,863	19,437	18,385	16,013	16,560
Total Equity	2,819	2,769	2,390	2,391	2,311
Equity attributable to owners of the parent	2,760	2,699	2,354	2,354	2,289

(*) 2025, 2024 and 2023 Income Statement data, investments, and R&D expenditure refer to Continuing Operations only (in 2025 and 2024 excluding the contribution of Defence

business, classified as Discontinued Operations; in 2024 and 2023 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 year 2021, 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 160

RISK FACTORS

The following 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.

The following factors shall not be considered a complete list of the risks and uncertainties that may affect the Group. According to the Group'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 jeopardise the ability of Iveco Group to operate in the market.

The present section describes risks that could have a significant impact on the economic 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 assessment

process: business-as-usual risks which are considered adequately managed and controlled such that residual risk is considered minor, are not

detailed in this report, even if monitored. Nevertheless, there can be no assurance that any mitigation action will be sufficient to successfully

counter or mitigate potential risks.

Although the Group 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

Risk related to the evolution of geopolitical expectations

Operating globally exposes Iveco Group to risks from regulatory changes, trade restrictions, currency controls, conflicts and civil unrest.

Intensified geopolitical tensions and accelerating geo-economic fragmentation through sanctions and tariffs may impact procurement and sourcing

strategies, logistics, and sales, creating risks such as materials price volatility and supply chain disruptions. In 2026 geopolitical instability is

expected to remain high, with continued regional conflicts, regulatory uncertainties and trade fragmentation. Cybersecurity threats and energy and

raw material market volatility will require reinforced resilience measures and closer monitoring of regulatory developments. The Group mitigates

these threats through institutional engagement, scenario-based risk assessments, emergency planning, and supply chain continuous monitoring

and adaptation.

Risk related to global economic conditions

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 reduce or delay 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.

Board Report Risk Factors 161

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.

Competition risk, considering both traditional and incumbent players

Iveco Group operates in global and regional markets characterised by intense competition on product quality, innovation, pricing, fuel efficiency,

reliability, safety, customer service, and financial solutions. Depending on geography and product segment, the Group competes with

international, regional, and local manufacturers and distributors of commercial and specialty vehicles and powertrains. Competitive advantage is

primarily driven by product performance, technological innovation, quality, distribution network, customer service, and pricing. Aggressive pricing

strategies by competitors, unexpected delays in product development or manufacturing, quality issues, or failure to maintain competitive pricing

could adversely affect the Group’s business performance and financial position.

The ability to remain competitive over the long term depends on keeping pace with rapid technological evolution—particularly in areas such as

emissions compliance, electrification, and connectivity. Despite Iveco Group’s commitment to decarbonisation, some competitors leverage

substantial resources to accelerate development of advanced technologies, achieve cost efficiencies, and scale production faster, thereby

reinforcing their market position.

Failure to deliver innovative products that meet or exceed competitors’ offerings in terms of price, quality, functionality, mobility services,

electrification, and autonomy—or delays in launching strategic products—could result in reduced revenue and market share. Iveco Group

continuously explores new opportunities in transport and logistics ecosystems, revises R&D priorities based on technological and commercial

relevance, and evaluates partnerships to accelerate innovation. To mitigate competitive pressure from established players and new entrants—

often more agile and price-aggressive—the Group monitors demand elasticity and competitor actions, while implementing cost optimisation and

innovation initiatives. Its extensive distribution network remains a key differentiator; however, inability to adapt effectively to evolving market

conditions could negatively impact business results and strategic positioning.

Risks related to investments and partnerships

Cooperation with partners 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 synergies and

improve cost structures in order to respond successfully to the competitive situation in the automotive industry.

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 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.

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

Evolving environmental and climate-related regulations—including those governing engine and vehicle emissions, safety standards, fuel

requirements, restricted substances, and greenhouse gas (GHG) emissions—require substantial investments in product design and compliance.

Emissions rules are particularly stringent in the European Union, where the Group conducts most of its business. EU fleet targets for 2030, and

2035 mandate significant reductions in vehicle emissions achievable only through advanced technologies such as battery-electric systems,

demanding large-scale capital and R&D investments. Failure to comply could result in severe penalties, reputational damage, and restrictions on

market access in highly regulated regions.

Political and regulatory uncertainties and global economic vulnerabilities may also dampen consumption and investment, while the higher cost of

low-emission vehicles could slow adoption and negatively impact demand. Additionally, competitors with greater resources may adapt more

quickly and at lower cost, intensifying competitive pressure. To comply with current and future environmental requirements, Iveco Group must

continue to allocate capital and R&D expenditure to upgrade products and manufacturing facilities, while reinforcing long-term governance and

strategic focus to safeguard competitiveness.

Board Report Risk Factors 162

OPERATIONAL RISKS

Risk related to tender management

Iveco Group delivers complex, technologically advanced, and sustainability-oriented products, often under long-term contracts awarded through

public tenders with strict requirements and delivery deadlines. Unexpected cost increases—particularly where price renegotiation is not permitted

—can significantly erode margins. Moreover, delay in complying with evolving ESG standards, including environmental, social, and governance

requirements, may limit the Group’s ability to qualify for tenders, especially in jurisdictions with stringent sustainability regulations, while delays in

meeting contractual delivery timelines may result in financial penalties, reputational damage, and customer dissatisfaction, undermining long-term

relationships and competitiveness. To mitigate these risks, Iveco Group continually monitors evolving regulations to anticipate emerging

sustainability requirements and ensure full compliance. At the same time, reinforcing operational planning and strengthening supply chain

resilience remain essential to securing timely deliveries and protecting both profitability and market access.

Risk related to the supply of utilities, raw materials, parts and components

Iveco Group relies on a complex supplier network for raw materials and components, also sourced from single suppliers, limiting flexibility in case

of disruption. This risk is amplified by external factors such as geopolitical tensions, regulatory changes, and financial instability among suppliers,

as well as global logistics challenges including freight capacity constraints and port congestion. These conditions can lead to delays in material

deliveries, production bottlenecks, and increased order backlogs, while also driving up transportation and product costs. In addition, persistent

volatility in raw material and utility prices—driven by inflationary pressures, economic uncertainty, and tariff fluctuations—places further strain on

margins and financial planning. Such disruptions may result in missed delivery commitments, contractual penalties, reputational damage, and

reduced competitiveness.

To mitigate these risks, Iveco Group conducts frequent supplier risk reviews, implements contingency plans including, but not limited to, reducing

single sourcing in high risk suppliers/categories, considers forward fixing activities or hedging measures when cost-effective, alongside ongoing

efforts to diversify the supplier base and enhance supply chain visibility.

Information Technology Security and AI‑Driven Risks, including Cybercrimes

Iveco Group relies on complex IT systems and networks — some operated internally, others managed by third parties — to support core business

processes, financial reporting, data management, and connectivity services. The Group stores sensitive information, including intellectual property

and personal data, making the secure and continuous operation of these systems essential.

These systems can be subjected to multiple problems from several sources, which could potentially disrupt operations and compromise security,

including hardware or software failures, human error, interruptions of data centres or cloud services, cyberattacks, and malware. Geopolitical

instability is also contributing to a heightened global threat landscape.

In addition to traditional IT risks, the rapid adoption of Artificial Intelligence introduces further challenges. Unauthorized or uncontrolled use of AI

tools (“shadow AI”), AI assisted misinformation, and weaknesses in model governance and data quality may lead to operational disruptions, data

leaks, legal violations, or reputational damage. Evolving regulatory frameworks further increase compliance requirements and the need for robust

oversight. It is crucial to implement robust measures to mitigate these risks and ensure the integrity of our infrastructure

For additional information on Information Security Risks refer to the section "Risk Management and Internal Control System" of this Annual

Report.

Risks related to people and culture

The Group’s ability to compete effectively and execute its growth strategy depends on attracting, developing and retaining qualified personnel

across key functions and markets. Talent shortages, recruitment challenges or difficulties in integrating and retaining skilled resources may

constrain the Group’s operational effectiveness.

To mitigate these risks the Group is investing in reskilling initiatives and competitive remuneration frameworks to attract and retain key

capabilities. These efforts are reinforced by a strong commitment to fostering a safe, diverse, inclusive and respectful work environment, as

demonstrated by the achievement of EDGE certification, which validates the Group’s progress on gender equity, inclusion and fair employment

practices.

Furthermore, the Group’s potential risk of work interruptions or stoppages could impact production volumes, with potential material adverse effects

on the Group’s results of operations and financial condition. The ability to efficiently deploy personnel or implement permanent or temporary

redundancy measures in compliance with laws and/or collective labour agreements might require clearance of public Institutions and/or the

agreement of Unions where such laws and agreements so require. To reduce such potential risk, the Group puts in place continuous

communication with all internal and external stakeholders, public Institutions and Unions to monitor the situation and undertakes negotiation for

the renewal of collective agreement in many Countries.

Board Report Risk Factors 163

Risks related to product distribution methods

Iveco Group distributes most of its vehicles through independent dealers, a model that inherently carries certain risks. Dealers may make

sub‑optimal inventory decisions, face financial distress, or require additional support from the Group, potentially increasing operating costs.

Rising cost pressures and structural challenges for smaller dealers may also reduce the size of the dealer network, limiting market coverage and

weakening the Group’s competitive position. Furthermore, any improper use of product warranties by dealers could generate additional expenses

for the Group.

To mitigate these risks, Iveco Group monitors dealer performance, stock levels and financial soundness, and conducts targeted audits to prevent

warranty misuse. These actions help safeguard the Group’s sales volumes, operating performance and overall financial condition.

Other operational risks, including process design and production

Production risks encompass all factors that may affect planning and capacity utilisation, including inaccurate demand forecasting that can lead to

under- or over-utilisation of production resources. Such imbalances may result in higher operating costs, delivery delays, and quality issues

caused by excessive workload stress. Additional risks arise from unforeseen disruptions at manufacturing facilities, which can stem from

unexpected events such as equipment failures, supply shortages, or external events impacting operations.

The success of Iveco Group products depends on maintaining and growing market share in existing markets while expanding into new ones

through innovative, high-quality offerings that ensure profitability. Achieving these objectives requires the ability to design and manufacture

products that meet stringent customer quality standards, foster collaboration and synergies between engineering and manufacturing, and

accelerate the development of connected, digital, and electrified solutions.

The Group already carried out investments in automation, electrification, production capacity optimization and enhancement of operational

flexibility also through people training and upskill. To guarantee consistent product quality, Iveco Group has implemented continuous monitoring of

technical Key Performance Indicators (KPIs) complemented by additional quality checks on rework activities.

Risks related to health, safety, and the environment

Despite the Group’s adverse risk appetite toward Health, Safety & Environment risks, the possibility of incidents causing harm to people or the

environment cannot be fully eliminated, particularly given that many operational risks stem from human behaviour.

While Iveco Group (i) maintains up to date technical competencies, (ii) has implemented internal procedures and controls to support safe and

compliant operations, and (iii) performs regular maintenance to ensure asset quality and reliability, incidents may still occur, potentially resulting

in:

▪ Serious injuries to employees, including long term disabilities or fatalities

▪ Environmental pollution caused by improper execution of operational activities

To reduce exposure to these risks, Iveco Group has established a centralised Health, Safety & Environment organisation and implemented an

Occupational Health, Safety & Environment Management System, certified in accordance with ISO 45001. Reporting processes are continuously

updated and monitored, and targeted training is regularly provided to personnel; communication campaigns are deployed in other to foster people

awareness and involvement.

Climate-related risks

An in-depth analysis of climate related risks has been carried out and subsequently reported to management. As a result, Iveco Group’s exposure

to climate change has been classified into two main categories:

▪ Physical risks, due to more frequent or sever weather events

▪ Transition risks, linked to the global shift toward lower emission economy

Although many Group facilities are located in areas without particularly high baseline exposure, extreme natural events — exacerbated by

ongoing climate change — may still generate significant damage. The most material potential impacts for Iveco Group’s sites relate to river

flooding and hailstorms, which could damage production sites or critical assets and/or disrupt manufacturing activities.

To limit this exposure, Iveco Group has already implemented a range of mitigation measures, including higher insurance coverage, installation of

additional protective equipment for high risk scenarios, as well as the training of dedicated teams.

In addition, the Group is exposed to certain transition risks, primarily driven by evolving regulations and shifting market dynamics, which will

require capital expenditures and increased investment in research and development.

For further details, refer to section “Sustainability Statement”, paragraph “3.2 Manging climate related risks and opportunities”.

Board Report Risk Factors 164

LEGAL & COMPLIANCE RISKS

Risk related to compliance with product, process and supply chain requirements

Given stakeholders’ expectations, the increasingly demanding regulatory requirements (in terms of complexity and/or country-specific provisions),

and the intricacy of managing product-specific requirements along the entire value chain, 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 2025. 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 that are not covered

by appropriate provisions, 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, corruption 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 are 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 or could damage its reputation, as well as its ability to conduct business.

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 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. 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.

Board Report Risk Factors 165

FINANCIAL AND TAXATION RISKS

Financial Market Risks: FX Volatility, Liquidity Constraints and Funding Cost Increases

Iveco Group is exposed to several market-related and financial risks that may affect its performance, liquidity position and ability to sustain

strategic investments. The Group operates in a cyclical industry characterised by high market volatility, which may create planning uncertainty

This external unpredictability can limit visibility and influence cash‑generation patterns, potentially reducing the Group’s flexibility to pursue

strategic initiatives or address unforeseen financial requirements.

Fluctuations in foreign exchange rates also represent a risk, as unexpected movements can affect margins and cash flows. While all on‑book

positions (payables and receivables) are fully hedged, thereby reducing the exposure to zero, future cash flows volatility cannot be completely

mitigated. The Group conducts monthly reviews of its rolling 12‑month forecast and adjusts its hedging strategy accordingly.

Furthermore, Iveco Group may face an increase in its cost of capital driven by tightening financial conditions or a higher perception of funding risk

from market participants. Such developments could reduce access to external financing or require the Group to secure funds at higher spreads.

Although the Group employs robust hedging strategies, active liquidity planning and continuous financial monitoring, these measures cannot fully

eliminate market‑related uncertainties. Adverse currency movements, deteriorating customer financial conditions, delays in payments or

unfavourable funding dynamics may still negatively impact the Group’s margins, cash flow generation, working capital and overall financial

position.

For further additional details on Iveco Group's financial risks see Note 18 "Derivative assets and derivative liabilities" and Note 30 "Information on

financial risks" to the Consolidated Financial Statements at 31 December 2025.

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 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 refinance existing debt, under unfavourable market conditions with limited funding availability 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.

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 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.

Board Report Risk Factors 166

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 materially impacted should negative economic conditions affect the financial services industry. Negative macroeconomic trends can

adversely influence the environment in which Financial Services operates causing credit losses exceeding expectations, which could adversely

affect its financial condition and results of operations. Furthermore, its ability to access funding at cost‑effective rates is essential to support

financing activities, meet future cash‑flow requirements and sustain diversified funding operations.

Some Financial Services operations are carried out through partnerships or joint arrangements; therefore, any deterioration in the reliability of

such partners, misalignment of interests, or early termination of the partnership could disrupt financing activities, increase operational or financial

risks, and negatively affect the Group’s ability to support its commercial offering.

Iveco Group’s operations and financial results could also be materially affected by new regulations or changes to existing regulations impacting

the financial services industry. In addition, increases in delinquencies or repossessions could negatively influence the performance of Financial

Services

Risk of Additional Tax Exposure or Increased Tax Expense

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 at 31 December 2025.

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.

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 167

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 33 countries

and a commercial presence in approximately 155 countries.

Iveco Group has the following 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;

▪ 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 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.

Furthermore, at 31 December 2025, Iveco Group still controls Defence business which 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. Defence business is classified as Discontinued Operations in this Annual Report, as described in the section "Result of Operations". Refer

to the Notes to the Consolidated Financial Statements, paragraph "Discontinued Operations - Defence Business", for additional details.

Finally, on 3 January 2025, it was completed the transfer to Mutares SE & Co. KGaA of ownership of Magirus GmbH and its affiliates performing

Fire Fighting business. In 2024, the Fire Fighting business was classified as Discontinued Operations. Refer to the Notes to the Consolidated

Financial Statements, paragraph "Discontinued Operations – Fire Fighting Business", for additional details.

Unless otherwise stated, 2025 and 2024 financial data shown in the following refer to Continuing Operations, only.

Net revenues by segment in the years ended 31 December 2025 and 2024 were as follows:


(€ million)	2025	2024
Truck	8,873	9,981
Bus	2,948	2,561
Powertrain	3,330	3,546
Eliminations and Other	(2,022)	(2,024)
Total of Industrial Activities	13,129	14,064
Financial Services	436	558
Eliminations and Other	(137)	(205)
Total	13,428	14,417

Board Report Business Overview 168

Net revenues by region in the years ended 31 December 2025 and 2024 were as follows:


(€ million)	2025	2024
Europe	10,090	10,923
South America	1,620	1,613
North America	121	156
Rest of World	1,597	1,725
Total	13,428	14,417

INDUSTRY OVERVIEW

Trucks

The world truck market is generally divided into two segments: Light Commercial Vehicles (LCV) (gross vehicle weight (GVW) 3.5-7.49 metric

tons), and Medium and Heavy (M&H) (GVW above 7.5 metric tons). The M&H segment is characterised by a higher level of engineering

specialization due to the technologies and production systems utilised, while the LCV segment has many engineering and design characteristics

in common with the automobile industry. In addition, operators of M&H trucks often require vehicles with a higher degree of customization than

the more standardized products that serve the LCV market. Customers generally purchase heavy trucks for three primary uses: long distance

haulage, construction haulage, and/or distribution.

The regional variation in demand for trucks and commercial vehicles is influenced by differing economic conditions, levels of infrastructure

development, and geographic region, all of which lead to differing transport requirements.

M&H truck demand tends to be closely aligned with the general economic cycle and the capital investment cycle including the general level of

interest rates and, in certain countries, governmental subsidy programs, particularly in more developed markets such as Europe, North America

and Japan, as economic growth provides increased demand for haulage services and an incentive for transporters to invest in more efficient, less

polluting, higher capacity vehicles and renew vehicle fleets. The product life cycle for M&H trucks typically covers a seven to ten-year period.

Although economic cycles have a significant influence on demand for M&H trucks in emerging economies, the processes of industrialization and

infrastructure development have generally driven long-term growth trends in these countries. As a country’s economy becomes more

industrialized and its infrastructure develops, transport needs tend to grow in response to increases in production and consumption. Developing

economies, however, tend to display volatility in short-term demand resulting from government intervention, changes in the availability of financial

resources and protectionist trade policies. In developing markets, demand for M&H trucks increases when it becomes more cost-effective to

transport heavier loads, especially as the infrastructure, primarily roads and bridges, becomes capable of supporting heavier trucks. At the same

time, the need to transport goods tends to increase in these markets, resulting in increased demand for LCV.

Industry forecasts indicate that transportation of goods by road, currently the predominant mode of transport, will remain so for the foreseeable

future. Furthermore, the Group also offers personalised aftersales customer assistance programs that provide a wide range of modular and

flexible maintenance and repair contracts, as well as warranty extension services, to meet a variety of customers’ needs and to support the

vehicle’s value over time: demand for those services, as well as for parts, is a function of the number of vehicles in use. Although demand for new

commercial vehicles tends to decrease during periods of economic stagnation or recession, the demand for those services is historically less

volatile than the new vehicle market and, therefore, helps limit the impact of declines in new vehicle sales on the operating results.

Commercial vehicles markets are subject to intense competition based on initial sales price, cost and performance of vehicles over their life cycle

(i.e., purchase price, operating and maintenance costs and residual value of the vehicle at the end of its useful life), services and service-related

products and the availability of financing options. High reliability and low variable costs contribute to customer profitability over the life of the

vehicle and are usually important factors in an operator’s purchase decision. Additional competitive factors include the manufacturer’s ability to

address customer transport requirements, driver safety, comfort, and brand loyalty through vehicle design.

Demand for trucks varies seasonally by region and by product class. In Europe, the peak retail demand occurs in the second and fourth quarters

due to key fleet customer demands and customer budgetary cycles. In South America, demand is relatively stable throughout the year except for

increased demand for heavy trucks in the first and fourth quarters from customers who transport foodstuffs. In Rest of World, sales tend to be

higher in the second and fourth quarters due to local holiday periods.

The commercial vehicle industry is undergoing a significant energy transition, driven by technological advancements, regulatory frameworks, and

growing market demand for sustainable transport solutions. Alternative and renewable fuels such as compressed natural gas (CNG), liquefied

natural gas (LNG), hydrogen, and full electric vehicles are gaining momentum as viable solutions to reduce emissions and improve energy

efficiency. The Group is actively investing in these technologies, supporting the industry's shift towards a more sustainable and decarbonized

future.

The car industry is leading autonomous vehicle development, but commercial vehicles are also making advances in platooning and autonomous

technologies. The Group expects this development to intensify. The Group believes that the growing automation in transportation and

infrastructure solutions through the use of Level 2+ autonomous vehicles will also allow the industry to provide greater safety, emission

reductions, fuel savings, and logistics efficiency.

Board Report Business Overview 169

Buses

The global bus business is organised by mission, from city and intercity transport to tourism purposes, with a capacity ranging from 10 to 150

seated/standing passengers. IVECO BUS (previously Iveco Irisbus) and HEULIEZ target markets include urban and intercity buses. Operators in

this industry include three types of manufacturers: those specialised in providing chassis to bodybuilders, those that build bodies on chassis

produced by third parties, and those, like IVECO BUS, that produce the entire vehicle.

The primary customers of the Intercity bus segment are tour- and intercity bus service operators, while the principal customers of the urban bus

segment are the transport authorities in urban areas.

Deregulation and privatization of transport services in many markets have favoured concentration towards large private companies operating in

one country, in more than one neighbouring country, or at an international level. Demand has increased for highly standardized, high-use

products for large fleets, with financing and maintenance agreements or kilometric pricing. Deregulation and privatization have also increased

competition between large transport service companies, raising the level of vehicle use and increasing the choice of brands for operators in the

market.

Sales for urban and intercity buses are generally higher in the second half of the year, due to public entities budgeting processes, tender rules,

and bus production lead-time.

Powertrain

The dynamics of the industrial powertrain business vary across the different market segments in which the various propulsion systems are used.

For vehicle and equipment applications, product development is driven by regulatory requirements (i.e., legislation on pollutant emissions and,

increasingly, CO2 emissions), as well as the need to reduce total operating costs: customers are seeking more efficient propulsion systems that

enable lower total cost of ownership and higher productivity.

For on-road applications in developed markets, where economy and infrastructure drive demand for local and haulage transportation, demand for

engines is driven by general economic conditions, capital investment, industrialization, and infrastructure developments.

In the bus market, engine demand is increasingly influenced by the environmental policies of governments and local authorities (i.e., requirements

for natural gas, hybrid, and electric solutions).

Demand for off-road applications in the agricultural industry is influenced by many factors, including the price of agricultural commodities and the

relative level of new and used inventories, the profitability of agricultural enterprises, net farm income, the demand for food products, agricultural

policies, as well as climatic conditions. At the same time, the construction equipment business is driven by general economic factors and the level

of public investment in infrastructure, which affects the need for replacement of old equipment and investment in more innovative solutions to

boost productivity.

Increasingly stringent emission regulations in Europe, the U.S. and Asia represent an opportunity for Powertrain to gain a competitive advantage

through technological solutions developed for engines and after-treatment systems (such as High Efficiency SCR technology). Alternative fuels

represent a viable alternative to diesel for transport vehicles, as they are more environment-friendly and offer better fuel economy than diesel

while performing comparably to diesel engines (e.g. LNG for buses and commercial vehicles). Increasing demand for alternative propulsion

systems (such as electrified powertrain or fuel cell) is expected to continue, as related technologies are growing quickly and will offer business

opportunities in the industrial sector. The increasing trend among mid-sized Original Equipment Manufacturers (OEMs) to outsource engine

development, due to the significant research and development expenditures required to meet the new emission requirements, presents an

opportunity for Powertrain to increase sales to third party customers.

The Company believes that FPT Industrial provides the Group, as a whole, with strategic independence in a key area where competition is

particularly intense and further challenges, driven by increasingly stringent regulations, are expected.

The electrification demand of industrial applications follows passenger cars trends and growth. After a first generation of industrial product

designed to easily replace the traditional combustion engines, key-players are moving on a second generation of products, designed to increase

performance, efficiency and sustainability standards.

FPT Industrial is committed to continuous innovation, developing also on electrification side cutting-edge products, also thanks to the continuous

scouting in the open innovation emerging technologies.

COMPETITION

The industries in which the Group operates are highly competitive. The Group believes that it has many competitive strengths that will enable it to

improve its position in markets where it is already well established while it directs additional resources to markets and products with high growth

potential.

For Truck and Bus vehicles, the Group competes with: (i) large global full-line equipment manufacturers with a presence in every market and a

broad range of products that cover most customer needs, (ii) manufacturers who are product specialists focused on particular industry segments

on either a global or regional basis, (iii) regional full-line manufacturers, some of which are expanding worldwide to build a global presence, (iv)

new incumbents and low-cost manufacturers in particularly in Eastern Europe and China. For Powertrain, the Group competes with (i) pure non-

captive players (i.e., powertrain manufacturers selling their products to third parties) and (ii) OEMs producing powertrains by themselves.

Board Report Business Overview 170

The Group's competitive strengths include well-recognised brands, a full range of competitive products and features, a strong global presence,

and distribution and customer service network. There are multiple factors that influence a buyer’s choice of industrial equipment. These factors

include the strength and quality of the distribution network, brand loyalty, product features, quality and performance, availability of a full product

range, pricing, technological innovations, product availability, financing terms, parts and warranty programs, resale value and customer service

and satisfaction. The ability to meet or exceed applicable engine emissions standards as they take effect is also a key competitive factor,

particularly in those markets where such standards are the subject of frequent legislative or regulatory scrutiny and change, such as Europe and

North America. The Group continually seeks to improve in each of these areas but focuses primarily on providing high-quality and high-value

products and supporting those products through the Group's dealer networks. Customers’ perceptions of product value in terms of productivity,

reliability, resale value and dealer support are formed over many years. Buyers tend to favour brands based on experience with the product and

the dealer.

In 2025 the Group has undertaken a comprehensive journey to reposition the Brand as a “Premium Partner-Centered Brand” focusing on

Customer Experience and Service, from Streamlining commercial offer and redesigning Customer journey touchpoints to maximizing uptime

service and parts availability across the network and simplifying access to IVECO’s solutions.

The efficiency of the Group's manufacturing, logistic and scheduling systems are dependent on forecasts of industry volumes and the Group's

anticipated share of industry sales, which is predicated on the Group's ability to compete successfully with others in the marketplace. The Group

competes based on product performance, customer service, quality, innovation and price. The environment remains competitive from a pricing

standpoint, and actions taken to maintain the Group's competitive position in the current challenging economic environment could result in lower

than anticipated price realization. The ability of the Group supply chain and manufacturing system to timely deliver finished goods is also critical to

meeting customer expectations. Failure to do so might imply losses of market share and competitiveness.

The Group's principal competitors in the Truck market are Daimler Truck, the Traton Group, the Stellantis Group, Paccar Inc. and the Volvo

Group.

The Group's principal competitors in the Bus market are Daimler Truck, the Traton Group and the Volvo Group.

The principal competitors of Powertrain include Cummins Inc., Daimler Group, Deere & Company, Deutz AG, Traton Group, Volvo Group, Yanmar

Co., Ltd, Caterpillar/Perkins and Weichai Power Co. Ltd.

PRODUCTS

Trucks (IVECO)

Under the IVECO brand, the Group produces a range of light, medium, and heavy trucks and commercial vehicles for both on-road and off-road

use, with approximately 3,700 different models available. The Group's key products include the Daily, a vehicle that covers the 3.5 – 7.5 ton

vehicle weight range, the Eurocargo, a vehicle that covers the 7.5 – 19 ton range, and the Way Range, the heavy product offers above 18 ton that

was completely renewed starting from 2019. The heavy vehicles portfolio includes the S-Way (for long haulage and distribution), the X-Way

(dedicated to construction logistics and municipalities), and the T-Way for off-road applications. The product offering is complemented by a series

of aftersales and used vehicle assistance services.

Light vehicles include on-road vans and chassis cabs used for short and medium distance transportation and distribution of goods, and off-road

trucks for use in quarries and other work sites. The Group has an estimated 30.0% (was 30.4% in 2024) market share in Europe (w/o UK &

Ireland) in professional heavy cab-chassis (in 3.5 - 7.49 ton GVW). The Group also offers shuttle vehicles used by public transportation

authorities, tourist operators, hotels and sports clubs and campers for recreational travel.

The M&H vehicle product lines include On-road articulated and rigid trucks designed for medium and long-distance hauling and distribution and

Off-road trucks that are designed to operate in any condition and terrain and offered in a wide variety of GVW and axle configurations for all

applications, from construction to roads building and maintenance, concrete mixer, mining and quarrying, construction plant materials and extra-

heavy loads transport.

The Group offers ecological diesel and natural gas engines on its entire range of vehicles. The Group continues to develop engines with specific

components and configurations optimised for use with CNG and LNG. The Group has developed a comprehensive roadmap for the introduction in

the market of a complete range of zero emission vehicles (from Light to Heavy).

In 2025, Truck business unit has successfully implemented its cost efficiency plan, redefining some investment priorities and reducing overall

operating expenses.

During 2025 the Group, under the Truck business, has signed strategic cooperation agreements such as on 14 March the Cooperation

Framework Agreement with Stellantis, for the supply, sale and distribution of a Large and a Mid electric van, under IVECO brand and IVECO

network (incl. services), for the EU market and on 16 March the Joint Development Agreement with Ford Otosan, for the co-development of a new

cab portfolio, enhancing liveability & comfort, aerodynamics for CO2 reduction, to comply with EU Direct Vision (GSR-D).

Board Report Business Overview 171

Bus (IVECO BUS and HEULIEZ)

Under the IVECO BUS and HEULIEZ brands, the Group offers city buses and inter-city commuter buses, minibuses, school buses and coaches.

The Group is an EU leader in inter-city buses, and is a leader in inter-city buses as well as in low and zero emissions solutions. IVECO BUS is

one of the major European manufacturers in the passenger transport sector and is expanding its activities at the European level. IVECO BUS is a

leader in city buses in France under the HEULIEZ brand and in particular on the electric urban bus market. The Group has a competitive footprint

in Europe and Latin America and is looking to grow in the AMEA region through portfolio expansion.

Powertrain

Powertrain is dedicated to the design, manufacture and sale of combustion engines, alternative propulsion systems, transmissions, and axles

under the FPT Industrial brand.

Its extensive product offering includes six engine ranges with power outputs from 30 hp to over 1,000 hp, transmissions with torque up to 500 Nm,

and front and rear axles from 2.45 to 32 tonne GAW (Gross Axle Weight). FPT Industrial offers the most complete line-up of natural gas engines

for industrial applications on the market, with power outputs ranging from 50 to 520 hp. A dedicated ePowertrain division is accelerating the path

towards net zero-emissions mobility, with electric drivelines, battery packs, and battery management systems. This extensive offering, and its

strong focus on R&D, makes FPT Industrial a world leader in industrial powertrains and solutions.

Launches: Throughout 2025, FPT continued on its path by focusing on the development of state-of-the-art, high-performance, and sustainable

solutions that power vehicles and vessels worldwide across a wide range of missions. In February, FPT took a step towards an increasingly zero-

emission marine world and announced the entry of its ePowertrain portfolio into the marine sector. AS Labruna, a FPT official distributor,

recognized the potential of this choice. The company has placed the eBS 37 EVO at the heart of the HEVOlution 80-37 hybrid generator from the

new HEVOlution product range. This cutting-edge offering represents a decisive step towards innovative and carbon-neutral energy solutions and

reaffirms AS Labruna's commitment to leading the maritime industry towards a more sustainable and technologically advanced future. In line with

its path towards even more sustainable powertrain solutions and technological innovation, FPT - alongside its brand Potenza Technology –

achieved ISO 26262 ASIL C certification for the eBM 5 Battery Management System for high voltage batteries, designed entirely in-house. The

certification was from TÜV SÜD. This important milestone highlights the qualities of the fifth-generation battery management system, designed

and developed entirely in-house by the integrated FPT and Potenza Technology team, from the circuitry right through to the software base and

application layers. This state-of-the-art system is defined by flexibility and scalability. With a highly modular design at its core, it is compatible with

400- or 800-volt battery systems, which can be configured at an application level to optimize vehicle efficiency and performance. This enables

OEMs to maximize the system’s effectiveness for each use.

In India, FPT powers Case Construction equipment’s line-up with its F28 CEV Stage V engine, a new solution for a more sustainable future, which

was presented at Bharat Construction Equipment Expo.

In the same month, the Brand participated at POWERGEN International, which took place in Dallas, Texas. The company showed its newly

expanded line-up of 2.4 to 16-liter engines, which comply with worldwide emission standards, from Tier 4 Final/ Stage V to unregulated. This

comprehensive portfolio of engines is tailored to customers’ wide-ranging power generation requirements, and always guarantees outstanding

performance, reliability, efficiency, and excellent fluid consumption. With regard to Power Generation, in April, FPT participated at the MEE show

in Dubai alongside its distributor network, showcasing a selection of its offerings for this segment. On this occasion, the launch of the R38 took

center stage. This engine is a new 3.8 liter turbocharged engine developed as a cost-effective solution for unregulated applications, designed for

both power generation and industrial power unit line-ups and covering 50-60 kVA and 55-65 kW outputs, respectively. The R38 features G-Drive,

the brand’s quick-to-market solution with cooling pack and filters already installed. It is equipped with a robust, proven, and reliable mechanical

injection system, while maintenance is facilitated and sped up thanks to the single-side servicing. For the power generation version, the R38 is

switchable from 1,500 rpm to 1,800 rpm to minimize OEMs’ stock requirements. The flexibility that defines the R38 makes it ideally suited to a

broad range of applications, from stationary backup to mobile prime power.

Together with the ASTRA brand, FPT supported the handling operations of the twenty-seven wind turbine blades destined for the new

“Mondonuovo” wind farm in Mesagne (BR). ASTRA HD9 vehicles, equipped with the CURSOR 13 engine, took part in the complex transport

operations during one of the most delicate phases of this renewable energy project. The construction of infrastructure such as a wind farm

involves operations with a very high level of complexity. Transporting blades up to 81 meters long on a special twelve-axle trailer, with a total

combined weight of over 200 tons, is certainly among the most challenging tasks.

As regards the Customer Service area, FPT exhibited its original remanufacturing solutions at REMATEC 2025, the world's leading

remanufacturing trade show for industry professionals, which took place in Amsterdam in April. FPT showed its leadership in Original REMAN

Solutions by displaying its range of original remanufactured engines and components. To highlight the importance of the remanufacturing sector

during the show, the brand took center stage in two key sessions. The first was a conference focused on the FPT Original Reman business &

products, while the second, entitled “Panel Circular & Sustainable Vehicles”, saw FPT and other companies exploring the trends, developments,

and technologies in the design, production, and end-of-life treatment of sustainable vehicles. Both sessions were held at the Rematec Theatre.

Board Report Business Overview 172

In June, FPT, together with its distributor Bimotor and VULKAN Italia, took part in the technological upgrading project of MotoBattello 3 - the first

ACTV waterbus (the operating company providing public transport services on behalf of AVM – Azienda Veneziana della Mobilità) to undergo a

hybrid retrofit, following its presentation at the 2025 Venice Boat Show. This project represents a concrete example of the conversion of maritime

mobility and a new way of rethinking navigation towards more sustainable solutions with an ever-lower environmental impact.

September began with a strong focus on marine trade shows. As usual, FPT took part in the Cannes Yachting Festival together with its distributor

Bimotor, where it showcased two engines from its marine line-up for recreational applications: the N67 570 EVO and the S30. The N67 570 EVO

is one of the most powerful engines in the NEF family for marine applications and, in addition to its performance, it has achieved great success

among boaters worldwide thanks to its lightweight design and quiet operation. The S30, from the F1 engine series, is ideal for powering any type

of planing or semi-planing pleasure boat up to 10 meters in length.

The following week, the Brand took part in the Genoa International Boat Show together with its distributor Naval Motor Botti. At its stand, a

selection of the marine range was showcased to the public. Among the highlights was the CURSOR 16 1000, an engine renowned for its ease of

maintenance and outstanding efficiency, resulting in competitive operating costs. Delivering power outputs ranging from 815 to 1,000 hp, it

ensures simple installation, excellent performance, quiet operation, and high reliability, making it ideal for motor yachts and sport-fishing boats up

to 24 meters in length. Also on display was the N67, the most powerful engine in the renowned NEF family for marine applications. Chosen by

boaters worldwide, it combines high-performance with a lightweight design and low noise levels, making it the ideal solution for vessels up to 18

meters. Completing the showcase was the BS 37 EVO, the latest addition to the marine range designed for zero-emission navigation. At the

beginning of 2025, the eBS 37 EVO marked the debut of FPT’s ePowertrain line in the marine sector, representing a natural evolution following

years of success in the on-road segment, where customers around the world have recognized its quality and reliability. The eBS 37 EVO is a

modular battery pack integrating high-energy-density cells and modules; it can be installed to power both full-electric and hybrid applications,

making it ideal, for example, for navigation in protected marine areas.

October marked the start of a partnership-focused period for FPT. The Brand signed a new agreement with JCB, a leading manufacturer of

agricultural equipment, to power the new range of its high-speed Fastrac tractors: the JCB Fastrac 6000 Series. The new engine under the hood

is the N67, renowned for its productivity, efficiency, and versatility. This represents an important milestone, confirming FPT as the preferred choice

of agricultural machinery manufacturers around the world.

The announcement was soon followed by news that FPT would supply the new Lintrac 160 LDrive, the most powerful tractor in Lindner’s history.

The engine supplied is the N45, whose characteristics make it an ideal fit for the new Lintrac 160 LDrive, designed to operate in high-altitude

environments and on steep terrain. Among the key features that make the engine ideally suited to the new Lintrac 160 LDrive are its lean design

and compact dimensions, combined with impressive power and torque - not to mention the engine’s proven reliability, a key factor when it comes

to demanding field operations.

At the beginning of November, another agreement was signed by FPT. SDF chose the Brand for the supply of its N67 engine, which powers the

new DEUTZ-FAHR 8 Series TTV, launched at Agritechnica 2025. This represents an important partnership secured by FPT, marking a significant

milestone that consolidates the brand’s leading position in the agricultural sector, as it reaffirms itself as a reliable and preferred partner for OEMs

worldwide.

November continued with a strong focus on innovation in the agricultural sector for FPT. The Brand in fact took part in Agritechnica, the world’s

leading trade fair dedicated to agricultural mechanization held in Hanover, showcasing major new developments and reaffirming its role as a

benchmark in the agricultural segment. First and foremost, the Brand’s commitment to sustainability was once again confirmed, as embodied by

the stand, which was once again carbon neutral. The entire life cycle of the stand—from material sourcing and transportation to assembly, energy

use, and dismantling—was assessed in terms of carbon emissions. At the end of the event, any residual emissions were offset through the

purchase of certified carbon credits. On display at the stand were the F28 Hybrid—ideal for telescopic handlers, compact, specialized and utility

tractors, as well as machines dedicated to fruit harvesting; and the N67, which, thanks to its reliability, robustness, and fuel efficiency, once again

proves to be the ideal choice for a wide range of agricultural applications, including tractors, combine harvesters, specialized fruit-harvesting

machines, mowers, sprayers, and many others. Also on display was the XCURSOR 13, initially launched for the on-road sector, which combines

performance, reduced emissions, reliability, and the ability to meet the productivity requirements of every specific agricultural application. The

CURSOR 16 was also on showcase—the most powerful engine in the CURSOR range, FPT’s flagship series for heavy-duty off-road applications.

Performance, reliability, and robustness are at the core of this engine, which was presented at AGRITECHNICA 2025 in its highest power rating.

FPT’s commitment to sustainability was also demonstrated by FORMA, a new battery pack concept that defines the next generation of FPT zero-

emission solutions. FORMA is an acronym for Future-ready, Open-ended, Reconfigurable, Modular, Adaptable. A name rooted in Italian history,

evoking engineering excellence capable of taking on any configuration—or form, precisely. FPT FORMA represents a revolutionary approach to

battery design, capable of adapting to virtually any configuration. This innovative concept marks a fundamental step in FPT’s battery storage

strategy, developed as a cross-segment initiative and also ideally suited to off-road applications. In addition, the Brand also showcased its Power

Unit, plug-and-play solutions for auxiliary applications in the agricultural sector. Specifically, these included the F36 IPU and the CURSOR 9 IPU.

The stand also featured Customer Service solutions, providing support to customers worldwide.

During the show, FPT once again reaffirmed its support for premium OEMs worldwide. Among them, New Holland Agriculture stood out, with

several new launches powered by FPT engines. Specifically, these included the Hybrid Prototype Telehandler, powered by FPT’s F28 Hybrid

natural gas engine in a high-voltage configuration; the T7 Standard Wheelbase (SWB) tractor series, whose heart is the N67 engine; and the new

T7 XD, equipped with the CURSOR 9.

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In 2025, several agreements were signed with new distributors, further expanding the network with the aim of providing ever-greater support to

customers worldwide. In North America, agreements were signed with Stauffer Diesel, ADR Power Systems, and Highmark Marine Fabrication

LLC to expand the marine engine offering. In India, AB Engineering and Systems Private Limited (ABES) was appointed as the first authorized

distributor for the area. In EMEA, the distributor network was expanded with Marline Marine Engineering Ltd, Breakwater Marine Ltd, Engines

Plus Ltd, and Mitchell Diesel Ltd for the United Kingdom and Ireland; Anadolu Traktör Makina for Turkey; and Power House AB for Sweden.

Sustainability is in FPT’s DNA and lies at the core of all processes, developments, and products. In this context, during 2025, the Brand chose to

celebrate the International Day for Biological Diversity by contributing to the conservation of marine ecosystems and supporting efforts to

safeguard the biodiversity of the Mediterranean Sea. FPT supported the activities of the Tethys Research Institute, a non-profit organization

dedicated to the study and conservation of the marine environment, particularly within the Pelagos Sanctuary—a protected area of approximately

90,000 km² spanning the territorial waters of Italy, France, and the Principality of Monaco in the Ligurian and Tyrrhenian Seas.

In June, FPT took part in World Oceans Day (8 June) alongside One Ocean Foundation, supporting Blue Forest, a project of international scope

dedicated to protecting and restoring marine forests of various types, starting with the waters of the Mediterranean Sea. The Blue Forest project

focuses in particular on the Mediterranean, an extremely delicate basin with unique ecological characteristics which is the sole growth area for

Posidonia oceanica, a particular endemic marine plant which forms extensive underwater forests that play as fundamentally important a role for

the marine ecosystem as plants do on dry land.

This is not intended to serve as a comprehensive enumeration of all launches throughout the year, but rather those for which a global press

release was issued.

Deliveries: Among the main deliveries in 2025, in November Xiamen Golden Dragon Bus Co., Ltd. delivered a first batch of buses equipped with

FPT’s CURSOR 9 Euro VI Natural Gas engines to the public transportation board of the city of Kragujevac in Serbia. This delivery demonstrated

FPT’s leadership in the Natural Gas bus segment in Europe, built on 20 years of experience with this technology which has become the market

standard for the segment. The delivery marks the start of a four-year program that will see a total of 200 vehicles delivered, enhancing the local

public transportation service capacity, as well as supporting the local goal of achieving low-carbon transportation.

This is not intended to serve as a comprehensive enumeration of all deliveries throughout the year, but rather those for which a global press

release was issued.

Prizes and achievements: 2025 was yet another year full of awards and achievements for FPT. It started with the podium at the Dakar Rally,

when the brand secured nine out of ten of the top final places in the truck standings. As Exclusive Technical Partner, the brand supported de

Rooy FPT teams, led by the drivers Aleš Loprais, Vaidotas Žala and Anja Van Loon. Loprais, from InstaTrade Loprais Team de Rooy FPT, took

3^rd place with the well-known IVECO Powerstar model 2024/2025, equipped with the iconic CURSOR 13 engine, designed to deliver unmatched

power, efficiency, reliability, and sustainability in the toughest conditions. Vaidotas Žala, the new entry to Skuba Team de Rooy FPT, and Anja

Van Loon (Fried Van de Laar Racing Team de Rooy FPT), conquered the dunes of Saudi Arabia with impressive performances across multiple

stages, including six podium finishes for Žala and a fourth-place finish for Van Loon. These two drivers finished the rally fifth and eighth

respectively, recording their best-ever results in the competition. Following the success of the Dakar rally, IVECO’s Eurocargo CNG, powered by

FPT’s N67 NG engines, was crowned Sustainable Truck of the Year in the Distribution category. A key factor in the sustainability of the Eurocargo

CNG, IVECO's flagship vehicle in the medium-weight segment, was undoubtedly the engine, which is the perfect choice for medium-duty truck

applications. The Eurocargo CNG is the only truck in Europe to offer natural gas across the full range and one of the most popular trucks on the

market.

In May, the 2025 FUSO Supplier Award was added to FPT’s list of accolades. The brand was awarded in the Partnership category by Mitsubishi

Fuso Truck and Bus Corporation, part of Daimler Truck AG. The prize recognizes the outstanding value of FPT as a strategic supplier and came

thanks to its role in delivering technical solutions that ensure compliance with regulations across domestic and international markets. It is an

achievement which reflects the brand’s ongoing collaboration and commitment to maintaining clear, open, and proactive communication to

promptly address any issues or changes.

With regards to its plants, FPT had much to celebrate in 2025. The Bourbon-Lancy facility marked its 150^th anniversary with an event attended by

employees and their families. The history of the Bourbon-Lancy plant began in 1874, when it quickly became a key production hub for early

innovations in the agricultural sector. From the mid-20th century, the site expanded its industrial and business footprint through diversification. In

1975, the plant was acquired by IVECO, marking the beginning of its specialization in the production of internal combustion engines. Just 22

years later, in 1998, it became the birthplace of one of the most iconic and innovative engine ranges in FPT’s history: the CURSOR engine family.

In November, the Sete Lagoas plant, in Minas Gerais, Brazil, celebrated its 25^th anniversary, a milestone for the Brand that highlights a quarter-

century of continuous innovation, passion, and an unwavering commitment to quality. Since its establishment in 2000, the plant has produced

725,000 engines, playing a decisive role in the industrial history of Latin America and providing tangible support for the energy transition. The

facility manufactures engines for the on-road, off-road, and power generation segments, and is home to the production of globally renowned

engines from the F1, NEF Series and S8000 lines, which power commercial vehicles, agricultural and construction machines, as well as G-Drives

for power generation.

The year ended with a batch of prizes in the agricultural sector. FPT powered three “Tractor of the Year” 2026 winners: the Claas Axion 9.450

Terra Trac ,“Tractor of the Year®” (TotY) in the HighPower category, which is powered by FPT’s CURSOR 9 engine; the New Holland T4.120 F

Auto Command, “Tractor of the Year®” (TotY) in the Specialized category, featuring FPT’s F36 engine; JCB New Fastrac 6300, “Tractor of the

Year®” in the Sustainable category, driven by FPT’s N67 engine. This year, out of the 24 finalists with ICE engines across five categories, ten

were powered by FPT, confirming the manufacturer’s position as one of the preferred engine suppliers among tractor manufacturers.

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Lastly, the brand engines equipped eight finalists of the Farm Machine 2026, an important prize which was awarded during the Agritechnica show.

Awarded biennially by Traction magazine, Farm Machine is among the most prestigious honors in the agricultural machinery industry, recognizing

outstanding innovation and product excellence. In this year’s edition, FPT engines powered eight finalists, securing wins across four categories:

Category Upper Medium Size Tractor (Case IH Optum 440 equipped with CURSOR 9 engine); Category Allaround Tractor (Lindner Lintrac 160

LDrive equipped with N45 engine); Category Combine Harvester (New Holland CX 8.90 PLMi equipped with CURSOR 9 engine); Category

Material Handling (New Holland W170D Forage Power equipped with N67 engine. These prizes underlined the reliability, performance, and

sustainability of FPT engines.

SALES AND DISTRIBUTION

Truck

Truck’s worldwide distribution strategy is based on a network of independent dealers, in addition to its own dealerships and branches. As of

31 December 2025, Truck had approximately 423 dealers globally (of which 13 were directly owned by the Group and 6 were branches). All

dealers sell spare parts for the relevant vehicles. Truck bolsters its distribution strategy by offering incentives to its dealers based on target

achievements for sales of new vehicles and parts and providing high quality aftersales services.

As of 31 December 2025, Truck had approximately 1,100 sales and 2,300 service network points. In addition to Truck’ standard one-year full

vehicle warranty and two-year powertrain warranty, Truck offers personalised aftersales customer assistance programmes.

A key element of Truck’s growth strategy is its distribution network. In Western and Eastern Europe, Türkiye, Australia and Latin America,

continued consolidation of the distribution network is aimed at improving service to customers. In Africa and the Middle East, the distribution

network is being expanded to fully exploit growth in these markets.

In the UK, Truck is one of the OEMs that sells trucks and other commercial vehicles to companies which offer commercial vehicle rental solutions.

Bus

Bus worldwide distribution strategy is based on a network of dealers that are complementing the direct sales channel which is addressing in many

markets typically the public and private accounts, such as Arriva, RATP Dev, Keolis, Ile-de-France-Mobilités, Transdev or Deutsche Bahn. As of

31 December 2025, Bus had 182 dealers globally (of which 3 were directly owned by the Group and 18 were branches). Dealers are comprising

some that are dedicated Bus dealerships, while the majority is as well sharing the Iveco Truck distribution mandate. Service network points are

mostly common with Iveco Truck business, leveraging on the processes.

Bus is enjoying a consolidated position in Europe as second player, while expanding its presence in Latin America and in a selective way as well

within the AMEA region and Central Asia. As of 31 December 2025 , Bus had approximately 375 sales and 1,000 service network points.

Powertrain

Powertrain specializes in delivering propulsion solution products to the Truck, Bus and Defence segments within the Iveco Group. The Company

extends its services to the agriculture and construction equipment businesses, catering to various third-party customers. Furthermore, Powertrain

strategically aligns its commercial approach and business model towards cultivating a diverse portfolio of medium-to-large OEMs clientele. The

Company has successfully engaged in establishing long-term supply agreements with an expanding number of third-party customers. Powertrain

has a network of dealers and service points that cover its entire product range and related market sectors. Large OEMs predominantly utilize use

their own internal networks to obtain parts and services for purchased equipment, while small OEMs frequently rely on us for delivery of parts and

services through Powertrain’s worldwide network.

PRICING AND PROMOTION

The retail price of any particular piece of equipment or vehicle is determined by the individual dealer or distributor and generally depends on

market conditions, features, options, and potentially regulatory requirements. Retail sale prices may differ from the manufacturer-suggested list

prices, as a result of different factors (markets' demand; customers' specific requirements; local market conditions; general economic conditions;

access to financing; etc.). The Group sells most of the Group's portfolio to its dealers and distributors at wholesale prices that reflect a discount

from the manufacturer-suggested list price.

In the ordinary course of business, the Group engages in promotional campaigns that may include price incentives or preferential financing terms

with respect to the purchase of certain products. The Group regularly advertises its products to transporters, distributors and dealers in each of its

major markets. To reach the Group's target audience, the Group uses a combination of general media, specialised design and trade magazines,

Internet and direct mail. The Group also regularly participates in major international and national trade shows and engage in co-operative

advertising programs with distributors and dealers. The promotion strategy for each brand varies according to the target customers for that brand.

Board Report Business Overview 175

Referring to Bus, the majority of sales are administered through standardized procurement processes both for public and for private customers.

While the tender award criteria are widely different, the process aims at achieving the best product fit combined with best cost of ownership over a

certain holding period of the asset. Bus has developed extensive expertise over the years to price its products and services profitably in this

competitive bidding process. Typically, customers ask long term warranties on quality and product behavior, through maintenance and repair

contracts and uptime guarantees, that require high quality standards on the product side and strong technical support in proximity to customer

operations. Promotional activities include participation to trade fairs as well as dedicated customer events with test drive and marketing

campaigns, complementing the direct contact between Bus sales organization and customer.

PARTS AND SERVICES

The quality and timely availability of parts and services are important competitive factors for each of the Group's businesses, as they are

significant elements in overall dealer and customer satisfaction and important considerations in a customer’s original equipment purchase

decision. The Group supplies parts, many of which are proprietary, to support items in the current product line as well as for products the Group

has sold in the past. The Group also offers personalised aftersales customer assistance programs that provide a wide range of modular and

flexible maintenance and repair contracts, as well as warranty extension services, to meet a variety of customers’ needs and to support the

vehicle’s value over time. Many of the Group's products can have economically productive lives over 10 years when properly maintained, and

each unit has the potential to produce a long-term parts and services revenue stream for the Group and its dealers. For these engines FPT

Industrial Customer Service has developed the “Original Reman” line: cost-efficient parts that are exactly as efficient as a brand-new unit. The

remanufactured products, which are also a sustainable alternative, get tested and provided with a full warranty. The full range of “Original reman”

products was presented at Rematec, the premier global event for remanufacturing, held in Amsterdam from 8 to 10 April. At the stand, visitors had

the chance to see a remanufactured F1C engine – the 3.0 l Common Rail diesel engine for on road applications – split in half to show a cross

section highlighting the quality of the Reman product and regeneration process. Visitors also had the possibility to embark on a virtual journey

through the Garchizy FPT Industrial Reman plant, gaining an up-close view of the processes and technologies behind remanufacturing of

engines, transmissions and components.

Connectivity and digitalisation play an important role in the Company strategy, supporting both our sustainability goals and our pursue of

Customer Uptime. All FPT customers, from big OEMs to niche manufacturers, can benefit from smart connected services. More than 400,000

assets are monitored 24/7 by our Control Room system, where after sales experts and engineers work side by side to develop and release in field

algorithms that improve fuel efficiency and reduce both emissions and unscheduled stops through FPT Industrial Proactive Assistance Service,

part of Connected services portfolio. All these services allow FPT customers to experience up to 99% uptime. Confirming the positive feedback

from Dakar 2025, the remote monitoring service will be also adopted to support de Rooy’s team at Dakar 2026. FPT Control Room team will

constantly monitor the engine's performance, leveraging on cutting-edge technologies tailored to meet the stringent rules of the Dakar and the

specific needs of the team. Stage after stage, the team will be provided with detailed insights and timely alerts in case of anomalies, allowing the

team to optimize strategies and interventions.

In the unlikely event of a breakdown related to one of brand products, FPT Industrial and its network increasingly leverage on virtual tools:

whether is programming an engine ECU via a smartphone, or guiding a technician in field through FPT proprietary platform, FPT has developed

tools to support customer uptime, enabling 75% of issues remotely managed.

As of 31 December 2025, the Group operated and administered 18 parts depots worldwide either directly, through a joint venture, or through

arrangements with warehouse service providers. This network includes 8 in Europe, 2 in South America, 1 in North America, and 7 in Rest of

World supporting Truck, Bus, Defence and Powertrain, respectively. These depots supply parts to dealers and distributors, which are responsible

for sales to retail customers. The Group's parts depots and parts delivery systems provide customers with access to substantially all the parts

required to support Group's products.

Referring to Bus, its operators transport people and as such the level of expectation in terms of product reliability and safety is very high. The

service points network is an important asset as it ensures customer proximity and ability to solve any technical issue in the field within short delay.

Bus has a specific organization managing vehicle uptime through a control room in Venissieux site and a task force of experts specially trained on

Bus products to intervene directly on customer operation in case this should be required.

COMMERCIAL AND/OR MANUFACTURING COLLABORATIONS

As part of a strategy to enter and expand in new markets, the Group is involved in several commercial and/or manufacturing collaborations

relating to Industrial Activities businesses. In particular, in China, the Group has a 60.0% interest in SAIC Fiat Powertrain Hongyan Ltd (SFH), a

manufacturing company located in Chongqing, which produces diesel engines under license from the Group to be sold in the Chinese market and

to be exported to Europe, the U.S. and Latin America.

Board Report Business Overview 176

FINANCIAL SERVICES

Financial Services offers a range of financial products and services to dealers, importers, customers and suppliers in the various regions in which

the Group's Industrial Activities segments operate. The principal products offered directly or through joint ventures with banks are retail loan, lease

financing and operating lease for the purchase or lease of new and used vehicles, wholesale financing to dealers and discount of non-dealer trade

receivables from legal entities of the Group. Wholesale financing consists primarily of dealer floor plan financing and gives the dealers the ability

to maintain a representative inventory of new products. In addition, Financial Services directly or through joint ventures with banks provides

financing to dealers for used vehicles taken in trade-in, vehicles utilised in dealer-owned rental yards, parts inventory, working capital and other

financing needs. As a captive finance business, Financial Services is reliant on and supports the operations of commercial and specialty vehicles,

and powertrain, their dealers and customers.

Financial Services supports the growth of Industrial Activities by developing and structuring financial products with the objective of increasing

vehicle sales as well as profitability and customer loyalty. Financial Services’ strategy is to grow a core financing business to support the sale of

the Group's vehicles while at the same time maintaining its portfolio credit quality, service levels, operational effectiveness and customer

satisfaction. Financial Services also offers products to finance third party vehicles sold through the Group's dealer network or within the Group's

core businesses. Financed third party vehicles include used vehicles taken in trade-in on the Group's products used in conjunction with or

attached to the Group's products.

In Europe, there are two joint ventures that provide retail financing to customers for the purchase or lease of new and used vehicles sold directly

by the Group or through brand dealers, depending on the country of origin. CNH Industrial Capital Europe S.a.S., a joint venture accounted for

under the equity method, owned by BNP Paribas Group (50.1%), through a sub-holding retaining the 49.9% of the shares, jointly controlled by

Iveco Group and CNH Industrial N.V., together retaining 49.9% of the shares. Transolver Finance Establecimiento Financiero de Credito S.A.

(Transolver Finance), a joint venture with the Santander Group, operating in Spain, owned by Iveco Group N.V. (49%) and accounted for under

the equity method. Transolver Finance also provides dealer financing. Additionally, there are vendor programs with banking partners that provide

customer financing of new and used vehicles sold by brand dealers of the Group in different countries.

In Europe, the Middle East and Africa (EMEA), the Iveco Group Financial Services organisation provides services to the CNH Financial Services

segment on customer financing and factoring deeply described and regulated in a specific Master Service Agreement (Financial Services Master

Service Agreement). In this context in Europe, IC Financial Services S.A., a French specialised credit institution with passporting to operate in

main European countries, wholly-owned by the Group, manages CNH dealer financing through a dedicated securitisation.

For South America, customer and dealer financing activities in Brazil are managed through CNH wholly-owned financial services company, Banco

CNH Industrial Capital S.A. (“Banco CNH Industrial Capital”), which supports the sales of Iveco Group vehicles with a "Vendor Program". In

Argentina, customer and dealer financing activities, which support the sales of Iveco Group vehicles, are supported and served through a wholly-

owned CNH Financial Services company, with a "Vendor Program". In addition, other vendor programs with banking partners are also in place in

Argentina and other South America countries.

For Rest of World (Australia), customer and dealer financing activities for commercial and specialty vehicles are managed through a "Vendor

Program" with CNH wholly-owned financial services companies.

Customer Financing

Financial Services - also through the joint ventures - operates in the frame of retail underwriting and portfolio management policies and

procedures. This allows Financial Services to reduce risk by deploying specific expertise in each of these businesses. The Group provides retail

financial products primarily through the Group's dealers, who are trained in the offer of the various financial products. Dedicated credit

underwriting teams perform retail credit analysis. The ownership of the vehicles for financial or operating leasing products is held by Financial

Services or joint ventures.

Financial Services guidelines do not specify a minimum down payment for leased vehicles, but a range of 1 installment to 20% of the actual sales

price generally applies, depending on the type of equipment, repayment terms, and customer credit worthiness.

GATE Mobility B.V. (“GATE” Green & Advanced Transport Ecosystem) – started operations in Italy in 2023 and expanded business through

branches in France and Germany opened at the end of 2024. GATE is a company dedicated to rental business of Iveco Group green commercial

vehicles. The mission of the company is to simplify the transition to electric mobility, with long term pay per use full-service rental provided in

collaboration with premium partners. On 13 May 2025, Iveco Group and DLL (De Lage Landen International B.V.) announced they were entering

into an agreement to facilitate the energy transition in Europe through rental solutions for low- to zero-emission commercial vehicles in Europe.

The transaction received the required regulatory approvals and closed on 1 October 2025. Under the terms of the agreement, DLL acquired a

51% equity interest in GATE Mobility B.V., formerly a fully owned subsidiary of Iveco Group presented within Financial Services segment, through

a reserved capital increase. Following the transaction, Iveco Group retains 49% interest in GATE, which from 1 October 2025 is accounted for

under the equity method.

Board Report Business Overview 177

Dealer Financing

Financial Services provides wholesale floor plan financing for nearly all the Group's dealers. This allows them to acquire and maintain a

representative inventory of products. Financial Services also provides financing to dealers for used vehicle taken in trade-in, vehicle utilised in

dealer-owned rental yards, parts inventory, working capital, and other financing needs. For floor plan financing, Financial Services generally

provides a fixed period of “interest free” financing to the dealers. This practice helps to level fluctuations in factory demand and provides a buffer

from the impact of sales seasonality. For the “interest-free” period, the applicable Industrial Activities segment compensates Financial Services

based on Financial Services’ estimated costs and a targeted return on equity. The cost is recognised as a reduction in net sales for the applicable

Industrial Activities segment. After the expiration of any “interest-free” period, interest is charged to dealers on outstanding balances until Financial

Services receives payment in full.

A wholesale underwriting team reviews dealer financial information and payment performance to establish credit lines for each dealer. In setting

these credit lines, Financial Services aims to meet the reasonable requirements of each dealer while managing its exposure. In most of the

countries the credit lines are secured by retention of title of the vehicles financed. Dealer credit agreements generally include a requirement to

repay the financing at the time of the retail sale of the unit. Financial Services leverages employees, third party contractors, and new digital

technologies like “geo-fencing” to conduct periodic stock audits at each dealership to confirm that the financed vehicle is maintained in inventory.

These audits are unannounced, and their frequency varies by dealer and depends on the dealer’s financial strength, payment history, and prior

performance.

Discount on Non Dealer Trade Receivables

Financial Services also provides intragroup discount of trade and other receivables. This activity involves the purchase (without recourse) of

receivables from legal entities of the Group, originating from the different Industrial Activities segments, and due from third or related parties.

Sources of Funding

The long-term profitability of Financial Services’ activities largely depends on the cyclical nature of the industries in which the Group operates,

interest rate volatility, and the ability to access funding on competitive terms. Financial Services funds its on book operations and lending activity

through a combination of financing sources including receivable securitisations, committed secured and unsecured facilities, uncommitted lines of

credit, unsecured commercial paper, affiliated financing, equity and retained earnings. Financial Services’ current funding strategy is to maintain

sufficient liquidity and flexible access to a wide variety of financial instruments and funding options.

LEGAL PROCEEDINGS

As a global company with a diverse business portfolio, Iveco Group in the ordinary course of business is exposed to numerous legal risks,

including, without limitation, dealers and suppliers litigation, intellectual property rights disputes, product warranty and defective product claims,

product performance liability, asbestos, personal injury, regulatory and contractual issues, competition law, anti-corruption and other

investigations, environmental claims. All significant matters are described below.

The outcome of any current or future proceedings, claims, or investigations cannot be predicted with certainty. Adverse decisions in some of

these proceedings, claims or investigations could require Iveco Group to pay substantial damages or fines or undertake service actions, recall

campaigns or other costly actions. It is therefore possible that legal judgments could give rise to expenses that are not covered, or not fully

covered, by insurers’ compensation payments and could affect Iveco Group’s financial position and results.

When it is probable that an outflow of resources embodying economic benefits will be required to settle obligations and this amount can be

reliably estimated, Iveco Group recognises specific provisions for this purpose. Contingent liabilities estimated by the Group, for which no

provisions have been recognised since an outflow of resources is not considered probable at the present time, were not material at 31 December

2025 and 2024.

Although the ultimate outcome of legal matters pending against Iveco Group cannot be predicted, Iveco Group believes the reasonable possible

range of losses for these unresolved legal matters in addition to the amounts accrued would not have a material effect on its Consolidated

Financial Statements, except for the following cases.

Board Report Business Overview 178

Follow on Damages Claims: in 2011 Iveco S.p.A. and Iveco Magirus AG (now Iveco Deutschland AG, and together with Iveco S.p.A. "Iveco"),

which, following the Demerger, are now part of Iveco Group N.V., and their competitors in the European Union were subject to an investigation by

the European Commission (the “Commission”) into certain business practices in the European Union in the period 1997-2011, in relation to

Medium & Heavy trucks. On 19 July 2016, the Commission announced a settlement with CNH Industrial ("the Decision") including a settlement

with Iveco. In particular, Iveco received a reduction in its fine for cooperating with the European Commission throughout the investigation, and

received a fine of €494.6 million. Similar decisions were taken, by the Commission, with reference to the other competitors. Following the

Decision, Iveco S.p.A. and Iveco Magirus AG (now Iveco Deutschland AG) have been named as defendants in many proceedings across Europe

and Israel. These damage claims could result in substantial liabilities for the Group as well as incurring in significant defense costs, which may

have a material adverse effect on its operations and financial condition. The extent and outcome of these claims cannot be reliably predicted at

this time and, therefore, the Group did not recognise any specific provision for these claims. In 2025 and 2024, Iveco Group recognised a cost of

€80 million and €20 million, respectively, related to certain claims for which it was possible to make a reliable estimate. This current position will

be reassessed on a regular basis and updated as necessary, based on cases' evolution. In accordance with IAS 37 – Provisions, Contingent

Liabilities and Contingent Assets (paragraph 92), no further information is disclosed so as not to prejudice the Group’s position.

FPT Emissions Claims: We are defending individual civil claims alleging emissions' non-compliance in Germany and Austria. We cannot predict at

this time the extent and outcome of these individual claims and therefore we did not recognise any specific provision in such relation.

Iveco Poland Antitrust Case: in August 2024, the President of the Office of Competition and Consumer Protection of Poland (“UOKIK”) issued a

decision regarding alleged violations of competition law by Iveco Poland Sp. z o.o. (“IPL”), a subsidiary of Iveco Group N.V., and its distributors in

the local truck market, envisaging a fine of PLN 155 million (approximately €37 million as of 31 December 2025). The UOKIK decision was served

on IPL in September 2024. Iveco Group disagrees with the allegations and findings presented by the UOKIK and intends to defend its case in

every possible instance and the decision of UOKIK is not yet final or binding. As a consequence, in October 2024, IPL has appealed the UOKIK

decision before the Polish First Instance court (the “Court”) and, as of the date of the present document, the proceedings are pending. Only a final

judgment of the Court will determine whether a breach of competition law took place and the amount of the fine, if any, that should be paid. In light

of the above, Iveco Group did not recognise any specific provision in relation to this case.

INSURANCE

Iveco Group covers with third party insurers the various risks arising from its business activities including, but not limited to, risk of loss or damage

to its assets or facilities, business interruption, general liability, product liability and directors' and officers' liability. The Group believes it maintains

insurance coverage that is customary in its industry. Iveco Group relies on international brokers to place its insurance coverage.

Board Report Business Overview 179

PLANTS AND MANUFACTURING PROCESSES

As of 31 December 2025 , the Group owned 28 manufacturing facilities (of which 5 manufacturing facilities belong to Discontinued Operations).

The Group also owns other significant properties including spare parts depots, research laboratories, test tracks, warehouses, and office

buildings.

The Group makes capital expenditures in the regions in which it operates principally related to initiatives to introduce new products, enhance

manufacturing efficiency and improve capacity, and for maintenance and engineering. In 2025, the Group's total capital expenditures in long-lived

assets, excluding assets sold with buy-back commitments and equipment on operating leases, were €775 million (€914 million in 2024), of which

95% was spent in Europe, 4% in South America and 1% in North America, respectively. These capital expenditures were funded through a

combination of cash generated from operating activities and borrowings under short-term facilities.

The following table provides information about our main manufacturing and engineering facilities of Continuing Operations as of 31 December

2025:


Location	Primary Functions	Approximate Covered Area (Sqm/000)
Italy
Brescia	Medium vehicles, cabs, chassis; R&D centre	276
Foggia	Engines; drive shafts; R&D centre	151
Foggia	Buses	5
Suzzara	Light vehicles; R&D centre	170
Torino	Transmissions and axles	222
Torino	Engines	142
Torino	R&D centre (Truck)	41
Torino	R&D centre (Powertrain)	28
Torino	Powertrain generation	18
France
Annonay	Buses (Coaches & City); R&D centre	114
Bourbon Lancy	Engines; R&D centre	107
Fourchambault	Engines (remanufacturing)	24
Rorthais	Buses (City); R&D centre	34
Venissieux	R&D centre (Buses)	14
Brazil
Sete Lagoas	Heavy, medium and light vehicles; R&D centre	184
Sete Lagoas	Engines; R&D centre	25
Germany
Ulm	R&D centre (Truck)	45
Ulm	Electric and hydrogen-powered heavy-duty trucks; R&D centre	29
China
Chongqing	Engine; R&D centre	76
Shanghai	R&D centre (Powertrain)	—
Argentina
Cordoba	(Medium/Heavy) Trucks and buses; R&D centre	58
Cordoba	Engines	31
Spain
Madrid	Heavy vehicles; R&D centre	134
Valladolid	Light vehicles, heavy cab components	118
United Kingdom
Coventry	R&D centre (Powertrain)	2
Others
Vysoke Myto (Czech Republic)	Buses (City & Intercity); R&D centre	133
Arbon (Switzerland)	R&D centre (Powertrain)	6
Burr Ridge (United States)	R&D centre (Powertrain)	8

Board Report Research and Development 180

RESEARCH AND DEVELOPMENT

In continuity with the trajectory defined in 2024, the Company continued to advance its leadership in sustainable mobility and technological

innovation. The year 2025 represented a transition period between the consolidation of the 2024 product launches and the initiation of a new

product cycle.

Throughout 2025, efforts were twofold. On one side, the Iveco Group strengthened the Model Year 24 line-up, consolidating the entire electric

vehicle line-up. On the other, it launched a new product wave, initiating development activities on strategic assets such as the Medium-Heavy

Duty Trucks, BUS Next Generation, new engines line up and new electric vehicles generation.

The Product Portfolio and Technology Roadmap remain fully aligned with the Company’s strategic ambitions:

▪ maintaining product competitiveness in line with market emerging expectations

▪ introducing a high level of technology and modernity across all products

▪ increasing the speed of adaptation to evolving market and regulatory conditions

The Company's Research and Development (R&D) Department confirmed the Product evolution is driven by 3 main technology pillars:

1) Multi propulsion & energy approach:

Iveco Group remains committed to supporting the energy transition by optimizing its portfolio across multiple propulsion technologies.

These include Natural Gas and Biofuel engine evolution, next‑generation electric propulsion systems and batteries, and Hydrogen solutions,

enabling the Company to address diverse customer requirements with a flexible approach.

Meanwhile, the internal combustion engine portfolio has been reinforced with new powertrain solutions driven by regulatory compliance,

efficiency improvement, and platform integration.

2) Software Defined Vehicle:

Iveco Group is positioning itself as a leader in connected services and vehicle digitalization, leveraging internal software capabilities and

strategic partnerships. The advancement of Advanced Driver Assistance Systems (ADAS) has strengthened vehicle safety and operational

efficiency. Autonomous Driving Level 2 has been introduced in compliance with regulatory standards while accelerating Level 2+

development through strategic world-class partnerships

3) Product architecture evolution:

This refers to innovation in defining and developing next-generation platforms that are best-in-class in terms of modularity, technological

readiness, and cost-efficient evolution throughout their lifecycle.

In 2025, the expenditure in research and development (including capitalised development costs and costs charged directly to operations during

the year) totalled €672 million, or 5.1% of net revenues from Industrial Activities.

At 31 December 2025 approximately 3,600 employees at 28 sites around the world were involved in the research and development activities (of

which approximately 3,200 employees at 22 sites refer to Continuing Operations). Approximately 250 employees were located at 6 sites in

emerging countries(1).

The following table shows our total research and development expenditures, including capitalised development costs and costs charged directly

to operations during the year, by segment for the years ended 31 December 2025 and 2024:


(€ million)	2025	2024
Truck	466	558
Bus	73	75
Powertrain	133	145
Eliminations and Other	—	—
Total of Industrial Activities	672	778
Financial Services	—	—
Eliminations	—	—
Total Continuing Operations	672	778
Discontinued Operations	29	43
Total	701	821

(1) Emerging Markets are defined as low, lower-middle or upper-middle income countries as per the World Bank list of economies as at 31 December 2025.

Board Report Research and Development 181

The Group owns a significant number of patents, trade secrets, and trademarks related to its products and services, and that number is expected

to grow as its research and development activities continue. With reference to Continuing Operations, at 31 December 2025, Iveco Group owned

1,145 patent families, totalling 5,257 active patents, which includes 86 new patents registered during the year. Additionally, there were 654

patents applications pending at that time. The Group's patents predominantly pertain to its product line, with 73% related to heavy, medium and

light commercial vehicles, special vehicles, buses, and spare parts. The remaining 27% of patents are associated with engines and driveline

systems. These patents encompass products, industrial processes, and both internal and external aesthetics of the Group's products. To

elaborate, 500 to buses, over 515 to heavy trucks, around 104 to medium trucks and more than 378 to light trucks and vans. Around 450 patents

safeguard the Group's vehicle spare parts, and over 953 patents pertain to innovative technologies intended for implementation in the Group's

vehicles. These technologies include alternative propulsion, battery management systems, and autonomous driving solutions. The remaining

patents, approximately 1,308, are related to engines, with 146 associated with drivetrain systems. Other patents pertain to electronic systems,

chassis, hydraulic components, and manufacturing processes. In recent years, the Group's patent portfolio has strategically focused on key

technological areas such as alternative propulsion, including fuel cell and battery electric vehicles, liquid and compressed natural gas engines,

and innovative solutions for autonomous driving for both short and long international goods transport. At 31 December 2025, over 43% of the

Group's patent portfolio serves to protect its current vehicles and engines. The entire patent portfolio is designed to defend the Group against

potential patent infringements. With reference to Defence business, at 31 December 2025, Iveco Group owned around 90 active patents.

The development of products that reduce polluting and CO2 emissions, optimization of energy consumption and efficiency, and the use of

alternative fuels and adoption of alternative traction systems were key areas of focus. The incorporation of advanced telematics systems to

ensure safe use, along with a focus on automated driving and connectivity and data management, were also prioritized.

Looking ahead, Iveco Group is committed to enhancing customer satisfaction and ensuring the highest quality in all its products and services. The

focus will be on delivering innovative solutions that meet the needs of customers while maintaining a strong emphasis on sustainability and

technological advancement. By prioritizing customer satisfaction and quality, Iveco Group aims to build long-lasting relationships with its

customers and continue to lead the commercial vehicle sector in innovation and excellence.

Board Report Human Resources 182

HUMAN RESOURCES

EMPLOYEES

The ability to attract, retain, and further develop qualified employees is crucial to the success of Iveco Group’s businesses and its ability to create

value over the long-term. The Group’s business is, by its nature, labour intensive and this is reflected in the high number of the Group hourly

employees.

The following tables show the breakdown of the number of employees by segment and by region at 31 December 2025 and 2024:


(number)	2025	2024
Truck	18,430	18,326
Bus	6,556	5,874
Powertrain	7,612	7,817
Other Activities	224	219
Total Industrial Activities	32,822	32,236
Financial Services	503	538
Total Continuing Operations	33,325	32,774
Discontinued Operations	2,128	3,272
Total	35,453	36,046


(number)	2025	2024
Europe	28,479	27,987
South America	3,835	3,735
North America	55	61
Rest of World	956	991
Total Continuing Operations	33,325	32,774

As of 31 December 2025, Iveco Group had 35,453 employees, a decrease of 593 from the 36,046 employees at year-end 2024. The change was

mainly attributable to the difference between new hires (approximately 3,000) and departures (approximately 2,400) during the year. A further

decrease of approximately 1,200 employees was mainly due to changes in the scope of operations related to the sale of the Fire Fighting

business, partially offset by the impact of personnel insourcing of the Industrial Security staff from Stellantis.

Excluding the changes in the scope of operations, the workforce increase compared to year-end 2024 was attributable in particular to the

workforce growth in Bus manufacturing plants, primarily in Annonay and Vysoke Myto, driven by volume increase, mainly to support the

production and sales of vehicles meeting the energy transition requirements and the demand for sustainable mobility, as well as in Defence,

whose business growing, in terms of both turnover and results, has led to an upward adjustment of the personnel involving all departments.

For 2026, Iveco Group does not expect any significant change in its overall workforce compared to 2025, excluding the already announced exit

from the scope of operations of the Defence business.

COLLECTIVE BARGAINING

At global level more than 94.7% of the Iveco Group employees are covered by collective labour agreements (CLAs) stipulated either by an Iveco

Group subsidiary or by the employer association for the specific industry which the Iveco Group subsidiary belongs to.

In Italy, approximately 14,100 Iveco Group employees, except Managers, are covered by the CLA that was renewed in March 2023 and in force

until 31 December 2026 for the regulatory part. In June 2025, the economic part of the CLA was renewed, setting the contractual increases to be

applied in 2025 and 2026.

The approximately 350 Iveco Group Managers in Italy are covered by the CLA that, renewed in April 2023, continues until 31 December 2026.

Board Report Operating and Financial Review 183

OPERATING AND FINANCIAL REVIEW

OVERVIEW

The Group is a leading automotive company engaged in the design, production, marketing, sale, servicing, and financing of trucks, commercial

vehicles, buses and specialty vehicles, defense and civil protection, 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 and for marine and

power generation applications. The Group has manufacturing, commercial and financial services companies located in 33 countries.

The Group’s reportable segments consist of: (i) Truck, (ii) Bus, (iii) Powertrain, and (iv) Financial Services. The Group’s Industrial Activities include

the Group’s entire enterprise without Financial Services (i.e., Truck, Bus, Powertrain, and Iveco Group N.V., including the treasury operations).

The Group generates revenues and cash flows principally from the sale of vehicles to dealers and distributors and engines to third parties.

Financial Services provides a range of financial products and services focused on financing the sale and lease of vehicles to the Group’s dealers

and their customers. These operations are reported as Continuing Operations. As previously mentioned and better described below, Defence

business is now reported as Discontinued Operations. In 2024, also Fire Fighting business was reported as Discontinued Operations.

Revenues of Industrial Activities are presented net of discounts, allowances, settlement discounts and rebates, as well as costs for sales incentive

programs, determined on the basis of historical costs, country by country, and charged against profit for the period in which the corresponding

sales are recognised. The Group’s sales incentive programs may include the granting of retail financing at discounts to market interest rates. The

corresponding cost to Industrial Activities is recognised at the time of the initial sale and the revenues of Financial Services are recognised on a

pro rata basis in order to match the cost of funding.

The results presented in this report are prepared in accordance with EU-IFRS and use the euro as the presentation currency.

Unless otherwise stated, the figures and comments included in the Operating and financial review sections below refer to Continuing Operations,

only.

ALTERNATIVE PERFORMANCE MEASURES (OR “NON-EU-IFRS FINANCIAL MEASURES”)

Iveco Group monitors its operations through the use of several non-EU-IFRS financial measures including Adjusted EBIT, Adjusted EBIT margin,

Adjusted Net Income/(Loss), Adjusted Diluted EPS, Adjusted Income Taxes, Adjusted Effective Tax Rate, Free Cash Flow of Industrial Activities,

Net Cash (Debt) and Net Cash (Debt) of Industrial Activities, and Available Liquidity. Iveco Group's management believes those measures provide

useful and relevant information regarding Iveco Group's operating results and enhance the readers' ability to assess Iveco Group's financial

performance and financial position. Management uses these non-EU-IFRS financial measures to monitor the underlying performance of Iveco

Group's business and operations to identify operational trends, as well as to make decisions regarding future spending, resource allocations and

other operational decisions as they provide additional transparency with respect to Iveco Group's core operations. These non-EU-IFRS financial

measures have no standardised meaning under EU-IFRS and are unlikely to be comparable to other similarly titled measures used by other

companies and are not intended to be substitutes for measures of financial performance and financial position as prepared in accordance with

EU-IFRS.

As of 31 December 2025, Iveco Group's non-EU-IFRS financial measures are defined as follows:

▪ Adjusted EBIT: is defined as EBIT before restructuring costs and non-recurring items, if any. In particular, non-recurring items are specifically

disclosed items that management considers rare or discrete events that are infrequent in nature and not reflective of on-going operational

activities. The performance of Iveco Group is reviewed based on the Adjusted EBIT, which the management believes more fully reflects Iveco

Group’s profitability, and, as such, Iveco Group uses Adjusted EBIT for internal reporting to assess performance as part of the forecasting,

budgeting and decision-making process as it provides additional transparency regarding Iveco Group’s underlying operating performance. The

management believes Adjusted EBIT is useful because it excludes items that management believes are not indicative of Iveco Group’s

underlying operating performance between periods. The management also believes that Adjusted EBIT is useful for investors and analysts to

better understand how management assesses Iveco Group’s underlying operating performance on a consistent basis. Accordingly, Iveco Group

believes that Adjusted EBIT provides useful information to third party stakeholders in understanding and evaluating Group’s operations;

▪ Adjusted EBIT margin: is computed by dividing a) Adjusted EBIT by b) Net revenues;

▪ Adjusted Net Income/(Loss): is defined as profit/(loss) for the period, before restructuring costs and non-recurring items, if any, net of the related

income tax effect. In particular, non-recurring items are specifically disclosed items that management considers rare or discrete events that are

infrequent in nature and not reflective of ongoing operational activities. Iveco Group uses Adjusted Net Income/(Loss) to assess performance as

part of its decision-making process as it provides additional insight into Iveco Group’s underlying overall performance, net of income tax. The

management believes that Adjusted Net Income/(Loss) is also useful for investors and analysts to better understand how management

assesses Iveco Group’s underlying overall performance on a consistent basis. Accordingly, Iveco Group believes that Adjusted Net Income/

(Loss) provides useful information to third party stakeholders in understanding and evaluating Group’s operations;

Board Report Operating and Financial Review 184

▪ Adjusted Diluted EPS: is computed by dividing Adjusted Net Income /(Loss) attributable to Iveco Group N.V. by a weighted-average number of

Common Shares outstanding during the period that takes into consideration potential Common Shares outstanding deriving from the Iveco

Group share-based payment awards, when inclusion is not anti-dilutive. When Iveco Group provides guidance for adjusted diluted EPS, the

Group does not provide guidance on an earnings per share basis because the EU-IFRS measure will include potentially significant items that

have not yet occurred and are difficult to predict with reasonable certainty prior to year-end;

▪ Adjusted Income Taxes: is defined as income taxes less the tax effect of restructuring expenses and non-recurring items, and non-recurring tax

charges or benefits;

▪ Adjusted Effective Tax Rate (Adjusted ETR): is computed by dividing a) Adjusted Income Tax (expense) benefit by b) Adjusted Profit (Loss)

before taxes. Adjusted Income Tax (expense) benefit represents income tax (expense) benefit, adjusted for the income tax (expense) benefit of

restructuring costs and non-recurring items, if any, as well as any non-recurring tax expenses or benefits. Adjusted Profit/(Loss) before taxes

represents profit/(loss) before taxes of the applicable period, adjusted for restructuring costs and non-recurring items, if any. Adjusted ETR fully

reflects Iveco Group’s level of taxation, based on Group's Profit/(Loss) before taxes, removing extraordinary and non-recurring items. The

management believes that this is useful for investors and analysts to better understand Iveco Group’s level of taxation on a consistent basis and

enables them to compare Iveco Group’s level of taxation with that of other companies;

▪ Free Cash Flow of Industrial Activities (or Industrial Free Cash Flow): refers to Industrial Activities, only, and is computed as consolidated cash

flow from operating activities less: cash flow from operating activities of Financial Services; investments of Industrial Activities in property, plant

and equipment and intangible assets; as well as other changes and intersegment eliminations.Iveco Group views Free Cash Flow as a useful

measure for measuring its cash generation ability;

▪ Net Cash (Debt) and Net Cash (Debt) of Industrial Activities: Net Cash (Debt) is defined as total Debt (including debt payable to CNH deriving

from financing activities and sale of trade receivables) plus Derivative liabilities, net of Cash and cash equivalents, Derivative assets and other

current financial assets (primarily current securities, short-term deposits and investments towards high-credit rating counterparties) and financial

receivables from CNH deriving from financing activities and sale of trade receivables. Iveco Group provides the reconciliation of Net Cash

(Debt) to Total (Debt), which is the most directly comparable EU-IFRS financial measure included in the Group's Consolidated Statement of

Financial Position. Due to different sources of cash flows used for the repayment of the debt between Industrial Activities and Financial Services

(by cash from operations for Industrial Activities and by collection of financing receivables for Financial Services), management separately

evaluates the cash flow performance of Industrial Activities using Net Cash (Debt) of Industrial Activities; and

▪ Available Liquidity: is defined as cash and cash equivalents, including restricted cash, undrawn medium-term unsecured committed facilities,

other current financial assets (primarily current securities, short-term deposits and investments towards high-credit rating counterparties), and

financial receivables from CNH deriving from financing activities and sale of trade receivables.

RESULTS OF OPERATIONS

The operations, and key financial measures and financial analysis, differ significantly for manufacturing and distribution businesses and financial

services business; therefore, for a better understanding of its operations and financial results, the Company presents the following tables

providing the Consolidated Income Statement of Iveco Group split between Industrial Activities and Financial Services. Industrial Activities

represents the activities carried out by Truck, Bus and Powertrain Business Units, as well as the holding company Iveco Group N.V., that also

provides centralized treasury services, and Defence Business Unit (classified as Discontinued Operations). In 2024, Industrial Activities also

included Fire Fighting Business Unit (classified as Discontinued Operations).

Discontinued Operations - Defence Business