Environmental Aspects

In the current context of climate change, the rising demand for water resources is highlighting a concerning phenomenon: in an increasing number of countries, large volumes of water may become scarce or even inaccessible due to changes in climate patterns, with a direct impact on supply costs. Indeed, water resources may no longer be available at current costs, as extreme weather events—such as prolonged droughts and erratic meteorological phenomena—are altering the distribution and availability of natural resources. These dynamics call for new approaches and policies aimed at the sustainable management of water.
For this reason, we are committed to sustainable water resource management through preventive measures and continuous monitoring of water use, in order to analyse withdrawals and consumption patterns.

Since 2024, following the entry into force of the CSRD Directive, we have reported not only water withdrawals but also quantities of water discharged and consumed. In 2024, we discharged 2,139,954 m³ of water while consuming 761,836 m³.
At the individual shipyard level, within the framework of Environmental Management Systems, we continuously verify the measures implemented to ensure the optimisation of water use.

We are committed to:

• implementing and maintaining our management systems in compliance with the ISO 14001 standard, which includes the management of environmental impacts related to water, including withdrawal and usage, and provides for third-party audits;

• conducting periodic and continuous monitoring of water withdrawals;

• monitoring water consumption throughout the production cycle, planning and carrying out specific maintenance interventions aimed at conserving water resources;

• promoting efficient water management practices by minimising freshwater withdrawals, reducing wastewater discharges, and limiting losses;

• developing technologies to preserve water;

• raising awareness among employees and third parties to foster responsible behaviour towards the sustainable use and protection of water;

• ensuring compliance with applicable local, regional, national, and international legislation.

In particular, the main actions undertaken in 2024 included improvements to remote monitoring systems, detection and repair of leaks in internal distribution networks, and the implementation of water recycling plants for ship cooling while berthed.

In the 2023-2027 Sustainability Plan, we set the following Group-wide reduction targets relative to 2021:

• a 3% reduction in water withdrawal per production hour by 2025;

• a 10% reduction in water withdrawal per production hour by 2027;

• a 12% reduction in water withdrawal per production hour by 2030.

Through analysis conducted using the Aqueduct Water Risk Atlas software, the shipyards of Ancona, Castellammare di Stabia, and Palermo were identified as located within areas of high water stress, and consequently, their consumption is subject to particular scrutiny. Furthermore, in these sites, studies have been initiated to prepare pipeline surveys (where necessary) and water balance assessments, aimed at diagnosing water withdrawal, usage, and discharge, improving related processes, and optimising costs.

In the current context of ecological transition, the responsible use of resources and the adoption of circular economy models represent key factors for a sustainable and competitive industry. Aware of the need to reduce the environmental impact of our activities, we integrate principles of efficiency and recycling throughout the entire production cycle, optimizing raw material consumption and minimizing waste.

Over the years, we have consolidated a rigorous material selection and procurement process, which allows us, already during the design phase, to assess the potential environmental impact of materials throughout their life cycle. From the drafting of technical contract specifications and throughout the procurement process, the Group operates to identify outfitting materials that, while meeting the same technical, qualitative, and compliance requirements, also possess eco-compatible characteristics.

The main raw materials used in the production cycle include:

• iron for hull construction;

• steel, iron, plastics, and other ferrous and non-ferrous alloys for onboard piping;

• materials for welding execution;

• coating products.

In pursuing the commitments set forth in our Policy, Fincantieri promotes the priority use of materials with lower environmental impact that support sustainable waste management both during shipbuilding and throughout the operational and end-of-life phases.

Regarding chemical products, supply choices, where technical characteristics and/or performance are equivalent, continue to favor products with lower environmental impact. Specifically, for coating products—which represent a significant quantity in shipyard production—we have identified and implemented ways to increase the application of low-solvent or water-based products, substituting traditional coatings and extending their use within the contractual technical specifications.

Supporting these commitments, the CIRCular Economy (CIRCE) project has highlighted the most significant impact categories, notably the use of fossil and mineral resources related to materials used for hull construction, cabins, and air conditioning systems, identifying the most promising initiatives.

Concerning materials logistics optimization, in Italy, the shipment planning centralization project (Control Tower), launched in 2014 to integrate shipment requests across shipyards, aims to reduce transport costs, improve delivery reliability and timeliness, and decrease environmental impact. This has been achieved by planning shipments as round trips (AR) and increasing vehicle utilization through combining multiple shipment requests on a single carrier.

In 2024, this project resulted in a reduction of 1,521 trips, corresponding to 395,648 km avoided, saving 264 tons of CO₂ emissions — equivalent to the amount of CO₂ typically absorbed in a year by approximately 44 hectares of forest (Birdsey, R. A. – 1992).

In line with the principles of the Environmental Policy and the objectives set forth in the Sustainability Plan, a comprehensive eco-design system has been established to promote the development of environmentally sustainable vessels. This aims to reduce waste generation and to minimize the environmental impact associated with dismantling and disposal at the end of the ship’s life cycle, activities which remain the sole responsibility of the shipowner.

We foster responsible waste management by strongly encouraging separate waste collection and prioritizing the reduction of hazardous waste. The criteria for managing production residues and waste disposal are embedded within corporate guidelines, which are subsequently detailed and implemented through specific procedures tailored to the individual characteristics of each production site.

The production cycle layout, defined by specific sequences of processing phases, allows for the upstream optimization of material selection and usage, thereby enabling precise organization of waste segregation and collection modalities.

Waste generated by our activities is delivered exclusively to authorized facilities according to its classification, with a clear preference for recovery destinations, in full compliance with ISO 14001 certification requirements, which are verified through internal and third-party audits.

Throughout 2024, a continuous awareness campaign involving all internal stakeholders engaged in waste management has ensured the achievement of set targets, including the reduction of waste quantities relative to production hours and maintaining a recovery rate of 87% perfectly aligned with the goals established in the 2023-2027 Sustainability Plan. This success was made possible by improving separate waste collection across all shipyards. Notably, in Italy, the recycling rate reached 90%, thanks to targeted policies and effective management of production residues.

A particularly significant aspect concerns hazardous waste: in 2024, 82% of such waste was sent for recovery or recycling, demonstrating a virtuous and responsible approach.

In 2024, Fincantieri entered into a partnership with the Hera Group to innovate the waste management cycle in shipyards, aiming to reduce waste generation, maximize recovery through the application of advanced industrial waste treatment and valorization technologies, implement differentiated collection for material reuse in production cycles, and optimize logistics and handling of production residues to enhance safety within the shipyards.

In January 2025, Fincantieri and the Hera Group announced the establishment of CircularYard S.r.l., a new company dedicated to implementing, across Fincantieri’s eight Italian shipyards, an innovative integrated waste management system designed to enhance waste valorization within a circular economy framework.

We actively promote a sustainable mobility model aimed at reducing greenhouse gas emissions by encouraging a shift in commuting habits.

Since early 2024, the Group has reactivated a digital car-pooling service dedicated to its Italian employees. This initiative fosters an alternative and sustainable solution for home-to-work travel by encouraging the responsible sharing of private vehicles among multiple users. The system — accessible via a dedicated smartphone or tablet application — enables registered employees to easily connect within a dedicated community and tracks the environmental and energy savings achieved with every shared vehicle trip. Simultaneously, the platform offers a reward system designed to incentivize participation, thus promoting a greener transformation of established commuting routines.

In parallel, the same digital platform supports a “soft mobility” option, which allows employees to certify their home-to-work journeys by bicycle or on foot, also granting access to the rewarding system.

As of January 2025, the platform boasts over 600 registered users. Throughout 2024, thanks to active participation and recorded trips—including those linked to the “soft mobility” option—approximately 23,000 kg of CO₂ emissions were saved, equivalent to 175,000 km traveled.

The Company also promotes and incentivizes the use of public transport whenever feasible and without imposing undue inconvenience on employees, thereby reducing reliance on private vehicles. This effort is supported by specific agreements with local public transport operators to activate additional bus routes and services.

Furthermore, to encourage sustainable commuting, employees may request, via the Welfare Portal, a full or partial reimbursement of urban public transport or train subscriptions, an opportunity extendable to their tax-dependent family members.

Regarding the corporate fleet, in Italy we are progressively replacing internal combustion vehicles with hybrid technology models, including PHEVs (Plug-in Hybrid Electric Vehicles), aiming to achieve a sustainable fleet in the coming years.

In line with sustainable mobility principles, electric vehicle charging stations are continuously utilized across our Italian production sites to support the recharge of company vehicles.

Additionally, through partner airlines used for employee business travel, we contribute to environmental protection by purchasing Sustainable Aviation Fuel (SAF), which reduces pollutant emissions compared to conventional aircraft fuel. These partner airlines have also offset the CO₂ emissions related to Fincantieri Italy employees’ business flights by funding internationally certified climate protection projects.

Subsidiaries within the Group are likewise adopting similar policies to reduce travel and environmental impact.

We are committed to measuring and monitoring our greenhouse gas (GHG) emissions to assess the effectiveness of the Group’s reduction strategies and to demonstrate our commitment to tackling climate change.

In 2024, Fincantieri Group’s total greenhouse gas emissions — including those from sources owned or controlled by the Group (Scope 1), electricity consumption (Scope 2), and other indirect emissions (Scope 3) — amounted to over 16 million tonnes of carbon dioxide equivalent (tCO₂e).

As part of the 2023–2027 Sustainability Plan, we have established a specific target to reduce Scope 1 and 2 GHG emissions compared to 2021 levels by -4% by 2025, -8% by 2027, and -20% by 2030. In 2024, Scope 1 and 2 GHG emissions decreased by 2.3% compared to 2021 levels.

As evidence of the Group’s commitment to combating climate change, since 2016 we have participated in the CDP Climate Change Program, which aims to improve environmental risk management through greater information transparency.

As part of CDP’s annual data collection, the Group prepares a Greenhouse Gas Statement, a document providing detailed information on Scope 1, Scope 2, and Scope 3 emissions. This statement is subject to a Limited Assurance engagement, performed in accordance with the “International Standard on Assurance Engagements 3410, Assurance Engagements on Greenhouse Gas Statements” (ISAE 3410) by the independent auditor Deloitte & Touche S.p.A., which issues a dedicated assurance report attesting to the compliance of the disclosed information.

We place particular emphasis on the management of air pollutants generated by our production and operational activities.
The analysis of atmospheric emissions focused on the following pollutants: Volatile Organic Compounds (VOCs), nitrogen oxides (NOx), sulfur oxides (SOx), particulate matter (PM10), methane, benzene, ethylene oxides, and polycyclic aromatic hydrocarbons (PAHs).

The 2023–2027 Sustainability Plan includes a specific target for reducing Volatile Organic Compounds (VOCs) per production hour, with a goal of -3% by 2025 and -5% by 2027 compared to 2021 levels.
With the introduction of a more ambitious target than regulatory thresholds, the commitment to VOC emission reduction has become increasingly challenging, requiring greater involvement from the Shipbuilding Divisions and, in particular, from the Design, Methods, Project Management, Health, Safety & Environment, and Procurement departments