Biodiversity and ecosystems

METLEN's approach to managing the ecological impacts resulting from its activity is based on prevention, sound environmental management and restoration of farmland from its activity, with the aim of minimizing impacts on biodiversity. The protection of biodiversity and the restoration of the natural landscape in the areas where business activities are carried out are essential pursuits of the Company, in the context of the reduction of ecological impacts and its contribution to sustainable development. According to the 2024 dual materiality assessment, a significant impact related to the above challenge is the following:

• Degradation of marine ecosystems

See more in the Company's Annual Report 2024.

METLEN has established a comprehensive governance framework for the management of sustainability issues, which is integrated into the Company's core decision-making and oversight processes. The role of the Management is clearly defined and ensures continuous supervision and strategic guidance on sustainability issues.

In particular, the Sustainable Development Committee, as a committee of the Board of Directors, is responsible for monitoring the implementation of the sustainable development strategy, approving relevant policies and monitoring the Company's ESG performance. The Committee meets regularly and cooperates with the Directorate-General for Corporate Governance and Sustainable Development, which plays a crucial role in coordinating all sustainability issues within the Company. The governance of sustainability issues is supported by specially defined organisational structures, which include teams and sustainability officers in each Business Sector and a key subsidiary. ESG thematic pillar managers work with central and local management teams, ensuring coordination, monitoring progress and providing technical guidance, with the aim of systematically integrating the principles of sustainable development across the Company's range of activities.

At the same time, METLEN applies a systematic due diligence approach to manage actual and potential significant sustainability impacts, risks and opportunities. This approach is based on the international guidelines for responsible business conduct and includes: identification and impact assessment processes, setting targets, action plans, monitoring mechanisms, taking corrective actions, consulting stakeholders and promoting value chain partnerships.

Through these mechanisms, METLEN ensures that sustainability issues are integrated into its business strategy and day-to-day operation, enhancing long-term value creation for all stakeholders.

METLEN has procedures in place to ensure the proper management of biodiversity issues, aligned with national and European legislation. Through consultations with social partners and permitting procedures, the views of stakeholders are taken into account, promoting the sustainable development of its activities. By the end of 2024, no significant negative impacts on biodiversity or soil have been identified.  as the mining operations are carried out underground and do not affect significant protected species. The Company has a central Environmental Policy that promotes the protection of ecosystems and biodiversity within its supply chain.

METLEN is committed to the protection of biodiversity and environmental management in its areas of activity, through studies, continuous prevention and restoration actions.

Metals Sector

The Company implements practices that limit environmental interventions, such as the use of existing infrastructure and waste management in accordance with the legislation. Extensive reforestation and plant production are implemented for the restoration of ecosystems.

Energy Sector

The wind farms operate with wildlife protection measures, without fencing, and the obligation to reforest equal areas is applied. In 2024, no environmental incidents occurred, confirming the effectiveness of the actions.

See more in the Company's Annual Report 2024.

METLEN recognizes the environmental impact of its business and implements continuous monitoring and management measures to ensure operation within the licensing frameworks. At the same time, the Company has set specific goals regarding the restoration of terrestrial ecosystems, because of mining activities, as well as the construction and operation activities of power plants and renewable energy projects.

Indicatively, these objectives include:

• Restoration by 2025 of the total exploitable land area from mining activity at a rate of 90.5%.
• Evaluation of the results of studies for the possible establishment and monitoring of specific quantified and time-determined objectives for the protection of marine ecosystems.
• Conducting bird fauna studies prior to the implementation of wind farms in Natura areas, for the protection of sensitive species.
• Installation of automated bird impact prevention systems in wind farms outside protected areas, with the aim of minimizing risks to avifauna.

METLEN ensures the protection of biodiversity and the restoration of the areas where it operates, with systematic monitoring and reforestation actions, especially in areas affected by wind and photovoltaic farms.

Indicative results:

• 89.4% of the area has been restored since the beginning of the mining activity, in the total exploitable area (Metals Sector – Mining Activity).
• 92.6% of the area that has been restored since the beginning of the activity, in the total exploitable area (Energy Sector - Construction/operation of wind farms).

See more in the Company's Annual Report 2024.