Terna S p A : reinforces commitment to decarbonisation. Target to reduce CO2 emissions by 46% by 2030

TERNA REINFORCES COMMITMENT TO DECARBONISATION.

TARGET TO REDUCE CO2 EMISSIONS BY 46% BY 2030

Science-Based Targets initiative (SBTi) approves new target to decrease carbon footprint in line

with the "1.5°C" scenario of the Paris Agreement

The approved Science-Based Target (SBT) introduces a target to reduce "Scope 3" indirect emissions and also extends the scope of application to the subsidiaries Brugg and Tamini

Rome, 2 March 2023 - Terna is reinforcing its commitment to fight climate change thanks to the definition of new targets to reduce greenhouse gas emissions arising from its direct and indirect activities. The company led by Stefano Donnarumma has adopted a new Science-Based Target (SBT) through which it undertakes to cut by 2030 its CO2 emissions by 46%, compared to 2019, improving the previous target that called for a reduction in climate-altering emissions by around 30%.

In line with its sustainability strategy and the Paris Agreement, Terna had adopted its first Science- Based Target in 2021 when it committed to a cut in emissions from its direct activities ("Scope 1") and indirect activities ("Scope 2") in line with the "well below 2°C" scenario, i.e. complying with the guidelines recommended by scientists to keep the global temperature increase well below the limit of 2 degrees.

The new decarbonisation commitment adopted by the national transmission grid operator and approved by SBTi (Science-Based Targets initiative) provides for targets in line with the "1.5°C" scenario, the most ambitious temperature target established by the Paris Agreement, which recommends a limit on the increase in global warming below 1.5 degrees. The Science-Based Target signed by Terna also introduces a target to reduce "Scope 3" indirect emissions, such as those relating to employee mobility or the supply chain. The new target also extends the scope of application to the subsidiaries Brugg and Tamini.

Adopting a more ambitious target to reduce its carbon footprint confirms the central role of sustainability as a strategic driver and one of the pillars of Terna's operations: 99% of the approximately € 10 billion of investments planned by Terna in the 2021-2025 "Driving Energy" Industrial Plan are by their nature sustainable, based on the eligibility criterion introduced by the European Taxonomy. The target to reduce Terna's carbon footprint is also consistent with the circular economy roadmap established by the company, which provides for over 50 actions to integrate circularity into the business model, contributing to reduce the environmental impact of the Group and its value chain, including in terms of reducing CO2 emissions.

Terna's leadership in sustainability, in the Top 1% for the S&P Global Sustainability Yearbook and also a top performer according to the other main ESG rating agencies, is evidenced by the company's presence in the main ESG indices, including: Dow Jones Sustainability Index, Bloomberg Gender Equality Index, ECPI, Euronext Vigeo Eiris, FTSE4Good, GLIO/GRESB ESG Index, MIB 40 ESG, MSCI, S&P Global 1200 ESG and Stoxx Global ESG Leaders.

The Science-Based Targets initiative (SBTi), an institution born of the collaboration between the Climate Disclosure Project (CDP), the United Nations Global Compact (UNGC), the World Resources Institute (WRI) and the WWF, certifies the commitment of companies to reducing climate- altering emissions and encourages action to combat climate change in the private sector in order to limit global temperature increases in line with the targets set by the 2015 Paris Climate Agreement and with what is considered necessary on the basis of the latest scientific evidence on the environment.