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Italmatch 25th anniversary: The Next 25 years – Tomorrow

ESG, Electrical Vehicles, Circular Solutions

Communications Office

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So, in 25 years Italmatch has become a global player with 800 M € sales, 1.200 employees, 20 manufacturing sites, 7 innovation hubs and about 500 products, present worldwide: but ltalmatch is not only driven by financial results, but also by a mission aimed at reducing the Group’s impact on the planet while improving relations with our stakeholders.

For some time, through a process of learning by doing, ESG (Environment, Social, Governance) principles have been part of ltalmatch Chemicals’ DNA.

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Shared by Claudio Pirani, Group ESG & Sustainability; Andrea Isaia, Group HR Director di ltalmatch, and Silvia Galli, Group Legal and Corporate Affairs.Manager;
"Environmental issues and the reduction of climate impact are at the center of our strategy. Also careful governance determined according to best practices and the management of relationships with the territory based on listening and co-construction. All this is essential for a company present in three regions of the world and in which geographical and cultural diversity of its resources with a consequent governance complexity are central themes"

This path has deep roots: over the years, through R&D activities, an increasing number of solutions and products with a lower environmental impact have been launched: products being biodegradable or allowing less waste both in production and in final use, or able to support and streamline the development of green supply chains, for example solutions for renewable energy.

Today, the Group is a supplier of lubricants for improving the efficiency of wind turbines, of flame retardants for photovoltaic systems and electrical vehicles, of antifouling agents for geothermal systems, resins for the selective recovery of metals, but also of fundamental raw materials for electric vehicle batteries and lubrification. It also supports access to drinking water in countries where there is scarcity, providing solutions for traditional (thermal) and innovative low energy consumption (reverse osmosis) desalination process.

ln parallel with internal growth, strategic acquisitions were also made, already mentioned in the previous chapters: just think of the Magpie startup, for the selective recovery of metals, or Eco-lnhibitors, for the development of products for the oil & gas sector that derived from salmon waste. ln more recent years, ltalmatch has been recognized as a fundamental partner for a number of European projects, which have allowed it to play a leading role in green transition and circular economy.

For a few years now, the Group has been following a structured path, with the establishment of a team dedicated to ESG, which includes an Energy Manager, the establishment of an ESG steering committee with various corporate functions, and the involvement of all the heads of plant and procurement to optimize both the impact of production and the so-called Scope 3 (the footprint due to the origin of the raw materials purchased from partners and used for the final products).

The Next 25 years - Tomorrow
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Shared by Maurizio Turci, Italmatch Chemicals Gruop General Manager Corporate
"The work carried out by the team made up of Claudio Pirani, Matteo Iorio (Master of Science in Environmental Biotechnology), Fabio Torlai (Master of Science in Sustainable Development) is of high technical and international profile.

The new generations - Y and above all Z - are bearers of a profound responsibility for change.
We, as a company and as individuals, have the duty to define coherent choices and actions for a better future within a sustainable ecosystem. To do this it is necessary to change the corporate paradigm, basing it on methods such as flexibility, smart working, the digitalization of processes and leadership models whose relating foundations are trust and freedom of expression, according to a model of growth that is not only industrial but also cultural and based on values".

To confirm its sustainability strategy, ltalmatch has joined the Global Compact, the United Nations organization which aims to monitor the alignment of strategies with the sustainable development objectives that were defined globally in 2015. Among the various ESG areas for ltalmatch Chemicals, the sensitive part is above all the environment, due to the significant implications for the various stakeholders and the common sentiment towards the topic of climate change. For this reason, ltalmatch has accelerated the path towards reducing its carbon footprint by 2030.

At the end of 2022 ltalmatch joined Science Based Target (a body recognized by the United Nations) and submitted its emissions reduction plan for their approval. The group then proceeded with the inventory of GHG emissions, certifying the data by a third party, and undertook paths according to CDP and TCFD models.

The importance of R&D

With seven R&D Centers between Europe and the United States, Italmatch Chemicals has turned research and development into its main growth driver. Today, with its central hub in Arese, Italy, it focuses on two areas: the development of solutions for rapid launch on the market and Beyond Innovation projects, i.e. those that engage the team in research for medium-long term projects.

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Shared by Chiara Monti, R&D and Innovation Manager of the Group
"From 2007, when the Arese plant started its research activity, to today, the growth path has been impressive, thanks to the investments made. We can say that the research activity has accompanied, in parallel, the industrial growth of the company. Italmatch R&D stands out for its ability to work on products, customizing them or making them more sustainable for individual customers, depending on requests and new challenges. We have a very high success rate (around 90% of the products developed reach industrialization and commercialization."
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Shared by Frédéric Bruyneel, Global Chemical Innovation & Laboratory Manager of the Advanced Water Solutions division
"Lately, we have worked a lot on solutions for geothermal energy, desalination and the highest performing electric car batteries. We work to make the products greener, we redo the production process and completely rethink it, with the aim of making it more "catalytic", without wasting energy and zero waste".
The Next 25 years - Tomorrow

Renewable energies

Among the applications of greatest interest for Italmatch are those focused on renewable energy. Today the group is a supplier of additives for lubricants that guarantee the correct functioning and reduce the wear of wind power plants. Flame retardants used in plastics find application in photovoltaic systems. The AWS division dedicated to water treatment provides a range of products for systems that produce geothermal energy and require biodegradable solutions effective at very high temperatures. Italmatch solutions also allow to increase efficiency and reduce energy consumption: let’s think for example of the products for membrane desalination systems (reverse osmosis) which allow the production of drinking water without massive use of electricity/heat.

Future mobility

The Italmatch Group has always been present in the automotive market, with flame retardant additives for plastics or lubricants for engine oils. With the advent of electric mobility, it has updated its product portfolio to offer solutions
suited to the new needs of the most innovative vehicles. A turning point was 2020, when Italmatch was selected as a European partner within the Second Important Project of
Common Interest (IPCEI 2) – European Battery Innovation, a project co-financed by the Italian State under the aegis of the European Union for the development of an internal production chain of batteries for electric vehicles.

The Next 25 years - Tomorrow

Italmatch, with the PARSES project, participates in three areas: creation of a SMART supply platform that goes from the development of the packaging to the loading and unloading system to guarantee a supply in line with the new directives imposed by the ecological transition of phosphorus pentachloride, the basis of the current LiPF6 liquid electrolytes. Study and industrial translation of the synthesis and production process of precursors for solid electrolytes – safer and more performing – are at the basis of the SSBs of the future.

Sustainable chemical technologies with IoT integration for the disposal of used batteries and the selective extraction of the metals contained there for the purposes of their reuse with a view to a circular and systemic economy. The project is important not only for the end of life of batteries, but also for providing an alternative to the extraction and procurement of secondary rare materials for the creation of new batteries.

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Shared by Maria Cristina Pasi, Coordinator of the IPCEI Italmatch Project and European Leader of the WorkStream Recycling & Sustainability EuBatIn
"A concrete ecological transition of the existing industrial system can only pass through implementation innovation actions, the development of new market and corporate governance models.
IPCEI 2 is one of the opportunities seized by Italmatch Chemicals to carry out this transformation process which protects the company’s know-how, projects it towards the development of both circular and sustainable products, and stimulates the creation of long-term growth models".

FlashPhos for Phosphorus recycle and reuse: full circularity

For years Italmatch has considered the so-called P4 its founding “backbone.” Even today, half of the Group’s products are phosphorus-based. Listed by Europe as a “critical” raw material (i.e. exhaustible, coming from extractive activity, and available only outside Europe), the great challenge is to find alternative ways to obtain it.
Italmatch has been conducting innovative research for years for the recovery of phosphorus from urban waste materials. Since 2022 it has become the leader of a European consortium, FlashPhos, which aims to apply on a large scale a thermochemical process to sustainably produce high-quality white phosphorus (P4) and other valuable
raw materials using sewage sludge or incinerator’s ashas the starting product. The project follows an economically and ecologically virtuous and climate-friendlycircular economy approach, with all output materials used in European industry, some of which replace critical or CO2-relevant raw materials.

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Shared by Carlos Galeano, Beyond Innovation Project Director of Italmatch Chemicals
"The FlashPhos consortium, coordinated by the University of Stuttgart, is a project majoritarly funded by the European Commission and formed by a team of large industrial companies, SMEs, NGOs and academic institutions.
17 partners, from Austria, Germany, Belgium, Italy and Spain, cover the full range of expertise in waste management, design and operation of thermochemical plants, as well as cement and phosphorus production, which are essential for the optimal execution of the project. FlashPhos will represent a game changer in the global phosphorus industry"

Community relations and social

The first social responsibility for a chemical company starts from the territories where it is present, a relationship in which Italmatch has always believed in and invested.

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Shared by Maurizio Turci Italmatch Chemicals Gruop General Manager Corporate
"Ever since the first factory, in Spoleto, historically located next to the station and a few steps from the historic center. Here we carry out various dialogue initiatives with the city, from projects to enhance the territory to opportunities to involve schools and institutions, including educational visits inside the plant".

In Norcia, as part of a journey that encompassed Spoleto and the whole region, Turci attended a conference following the earthquake that hit Umbria and Marche in 2017 to talk about reconstruction and organize support of the population, especially for school groups. For Italmatch, schools are an important point of contact with communities.

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Shared by Maurizio Turci, Italmatch Chemicals Gruop General Manager Corporate
"A fundamental process is to create a bridge between schools and companies, which represents one of the challenges for the future. New skills will be needed for innovation and sustainability.
Our approach is oriented in various macro directions. Enhancing collaboration between generations: on the one hand the ‘experts with high seniority’ colleagues with long term know-how and skills, and on the other the generations Y, Z and Alpha, who contribute with new sensitivities. On this front, reverse mentoring, upskilling and reskilling projects are planned. Bridging the gap between companies, the labor market and training institutions (secondary cycle, ITS, Universities) with projects such as OSM Edu "Adopt a School" or relationships with Universities and secondary schools helps to fill this gap."
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Shared by Barbara Aglioti, Corporate HR Manager and Erica Romualdi, HR Manager Italy
"Sport plays a significant role in society in multiple ways, influencing culture, health, education and social inclusion. It teaches important values such as fair play, respect for others, work ethic, discipline, cooperation and perseverance. Sport is an important part of education".

This is why Italmatch has always been close to and supports the “value” of sport, in particular youth sport and as a vehicle for social inclusion.
Among the most historic partnerships supported by the Group is Stelle nello Sport, a project that promotes sport and its values among young people, enhances and supports the activity of local associations and raises funds to support the Gigi Ghirotti Foundation (social and health care for seriously ill patients). A path that lives all year round and is a precious point of reference for the world of sport and education throughout Liguria, the region where Italmatch headquarters are located. The SportAbility Day project involved 850 kids who were able to try 34 sports disciplines in the village without barriers.

The Panathlon association is also involved in projects to support inclusiveness and the breaking down of barriers. Italmatch is also committed to promoting gender diversity in the world of chemistry, a sector in which the still felt prejudice towards some tasks makes cultural change and, consequently, gender diversity difficult.

For this reason, the group has joined the Valore D network, the first business association founded in Italy which, through leadership and mentorship paths, promotes gender diversity and a more inclusive culture.

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Shared by Caterina Michelotti, Global bal Communications Officer
"Gender diversity, inclusiveness and sustainability are among the central themes for Italmatch today. We believe it is important to convey them both within the Group, to make them part of the corporate culture, and externally, using all our communication channels"

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Communications Office