Environmental & Social Information • Mar 29, 2021
Environmental & Social Information
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2020 CONSOLIDATED NON-FINANCIAL REPORT
2020 CONSOLIDATED NON-FINANCIAL REPORT
| 62 | THE SUSTAINABILITY FOOTPRINT IN THE ECONOMIC ARENA |
|---|---|
| 69 | Supporting continuous innovation |
| 71 | Supporting After-Sales Services quality |
| 73 | Supplier management |
| 75 | Fight against Corruption |
| 79 | The commitment to prevent anti-competitive behavior |
| 80 | THE ENVIRONMENTAL SUSTAINABILITY FOOTPRINT |
| 85 | Eco-compatible design |
| 89 | Energy consumption and emissions |
| 93 | Waste management |
| 94 | THE SUSTAINABILITY FOOTPRINT IN THE SOCIAL ARENA |
| 97 | Supporting our associates |
| 105 | Group Socio-economic Compliance |
| 106 | Equal opportunities and the fight against discrimination |
| 107 | Training |
| 111 | Health and safety |
| 117 | Relations with trade unions |
| 118 | Supporting our Clients and Quality |
| 121 | We protect Clients by providing accurate information |
| 124 | GRI INDEX |
| 130 | INDEPENDENT AUDITORS LIMITED ASSURANCE REPORT |
| ous innovation |
|---|
| ales Services quality |
| ent |
| ption |
| prevent anti-competitive behavior |
| L SUSTAINABILITY FOOTPRINT |
| sign |
| n and emissions |
| t |
| FOOTPRINT IN THE SOCIAL ARENA |
| ociates |
| mic Compliance |
| and the fight against discrimination |
| 09 | Message to the Stakeholder |
|---|---|
| 10 | How to interpret the Elica Group's Non-Financial Report |
| 11 | Scope of Reporting |
| 12 | OUR IDENTITY |
| 14 | Our Vision |
| 15 | Our Values |
| 17 | Elica Group Profile |
| 33 | Outwards-facing initiatives |
| 34 | The Supply chain |
| 36 | The Governance System |
| 38 | Composition of the corporate boards and performance assessment |
| 40 | Remuneration policies |
| 41 | Definition of the Group's Strategies, Objectives and Values: the actions of the Board of Directors |
| 44 | Conflict of interest control policies |
| 44 | Effectiveness of the Risk Management model |
| 46 | ELICA'S SUSTAINABILITY FOOTPRINT |
| 50 | The direction traced by our footprints |
| 51 | Who are our Stakeholders? |
| 57 | Putting Sustainability into practice at Elica |
| 60 | Reporting Changes |
Despite the challenging landscape of 2020, which saw the emergence of the global health emergency and its major impact on the world's economies, the Elica Group was able to demonstrate the validity and resilience of its strategy. Some of our greatest achievements in 2020, which we wish to share with you and which are detailed further below, concerned our personnel, customers and the environment in which we operate. It is important to highlight the drop in the overall person-
Right from the start of the COVID-19 emergency, we showed our ability to react by establishing a Crisis Committee and adopting an internal protocol, with the goal on the one hand of ensuring employee safety - adopting all preventive measures available and ensuring that our facilities are safe - while also protecting the financial stability of the Group itself. 9.2% increase in average training hours for our blue-collar staff. The less-represented gender accounted for 24% of the LTI - Long Term Incentive System in 2020 (compared to 5% in 2019). In November, all Cooking Business Unit Italian sites (Fabriano, Mergo and Cerreto d'Esi) obtained the ISO
It is therefore with great satisfaction that I present the Elica Group's "Non-Financial Report", now in its fourth edition.
Our dialogue with customers, suppliers and our other stakeholders has continued uninterrupted throughout the year in order to understand your needs and respond quickly in these highly uncertain times. 45001:2018 certification, allowing them to complete the certification project launched in 2019 which has brought a significant decrease in the number of accidents (from 6 in 2019 to 1 in 2020) - workplace safety is our primary concern.
Product innovation, unique designs, and our commercial strength have enabled us to react to a weak second quarter of the year and to both maintain and consolidate our competitive positioning, while pursuing our further growth and development, particularly in relation to our The Customer Orientation of our After Sales Support Service has been recognised by our customers with its receipt - just one year after its creation - of the major sector award presented by the German Institute for Quality and Finance (ITQF).
nel turnover rate on the previous year (-8.33%) and the
own-brand products. Our strategic projects continue, with a consistent focus on sustainability as we advance further on the important journey embarked upon with the publication of our first "Non-Financial Report". Our objective remains that of measuring and understanding performance in the area of sustainability, while continuing to invest in a culture of sustainability. Finally, we have improved production energy resource efficiencies - even in such a difficult year from an organisational perspective - and have significantly cut our emissions. It has certainly been a very complicated year, but one in which we were able to remain in constant dialogue with you, our stakeholders, out of an awareness of the importance of working together.
Francesco Casoli Chairman Mauro Sacchetto Chief Executive Officer
This Consolidated Non-Financial report of the Elica Group (hereafter also the "Report") for the year ended December 31, 2020, drawn up in accordance with Legislative Decree 254/2016 enacting Directive 2014/95/EC, discloses upon environmental, social, personnel, human rights and anti-corruption matters, helping the reader to understand Group activities, its performance and results and the related impacts.
The document was prepared, like in the previous year ending in December 2019, in accordance with the GRI Sustainability Reporting Standards published in 2016, or updated in 2018, by the Global Reporting Initiative (GRI); in particular, in accordance with the provisions of Standard GRI 101: Foundation, paragraph 3, reference was made to the following GRI Reporting Standards ("GRI Referenced"), the detailed disclosures of which are provided in brackets:
The scope and quality of reporting is dictated by the materiality principle, an element identified by the reference legislation and central to the GRI standards: the matters dealt with in this Report are those which were considered relevant on the basis of a thorough materiality analysis described below.
This Non-Financial Report was approved by the Board of Directors on March 16, 2021, following its review by the Control, Risks and Sustainability Committee at its meeting of March 11, 2021.
At December 31, 2020, the "Group" refers to the parent Elica S.p.A. (hereafter also "the Company") and the subsidiaries consolidated on a line-byline basis in the consolidated financial statements: Elicamex S.a. de C.V. ("Elicamex"), Elica Group Polska Sp.z o.o ("Elica Group Polska"), Air Force S.p.A. ("Air Force"), Ariafina Co. Ltd ("Ariafina"), Leonardo Services S.a. de C.V. ("Leonardo"), Elica GmbH, Elica Inc, Elica PB India Private Ltd. ("Elica India"), Zhejiang Elica Putian Electric Co., Ltd ("Putian"), Elica Trading LLC ("Elica Trading"), Elica France S.A.S. ("Elica France"). Certain aspects and indicators may have a differing reporting scope than that stated above, where considered by management as non-significant for specific companies of the Group in view of the activities carried out. In this case, the text clearly indicates the reporting scope of the aspect/indicator.
For clarification or additional information regarding this document, you may contact the Quality & Environment System Assurance Department by sending an e-mail to the address [email protected] with "Non-financial report" in the subject line or by writing to:
Elica S.p.A.
Via Ermanno Casoli 2, 60044 Fabriano attn. QHSE Management System Coordinator
or by calling +39 0732 6101
Our Vision
Our Values and Commandments are the distinctive foundation of the common culture shared by those who are a part of the Elica Group.
Elica, a market player since the 1970's, is the leading global manufacturer of range hoods and hobs and of motors for domestic ventilation. Chaired by Francesco Casoli and led by Mauro Sacchetto, the Group has seven plants, including in Italy, Poland, Mexico, India and China and employs more than 3,200 people. With many years' experience in the sector, Elica has combined meticulous care for design with judicious choice of high-quality materials and cutting-edge technology to guarantee maximum efficiency and low energy consumption, making the Elica Group the prominent market figure it is today. This has enabled the Group to revolutionize the traditional image of cooker hoods: they are no longer seen as simple accessory but as a design element that improves the quality of life.
Elica's business units are as follows:
Cooking: designs, produces and markets domestic-use cooker hoods – both own brand and for the leading international home appliance and kitchen manufacturers (Whirlpool, Electrolux, IKEA, Bosch-Siemens, Haier, etc..) – hobs and ranges, and, for the Asian market, ovens and sterilisers;
Motors: designs, produces and markets electric motors for home appliances, range hoods and boilers for domestic use under the FIME brand;
Over the years, the Elica Group has steadily increased its market share to become a truly global player. It leads the range-hood market and is currently gaining leadership positions in the market for motors for heating boilers in both Western and Eastern Europe.
In Europe, the Group operates in the Marches region of Italy, home to its headquarters (in Fabriano, in the province of Ancona, where Elica's history began), its production facilities, its central research and development laboratory and its subsidiary Air Force. It also has a presence in Poland, through Elica Group Polska, based in Jelcz Laskowice, at the Wroclaw industrial park, one of the most important in Eastern Europe. It serves the German market directly through Elica GmbH, the Spanish market through a dedicated organization ensuring effective coverage and the French market through its recently opened Elica France location in central Paris.
The Elica Group has a presence in Querétaro, Mexico, through Elicamex, its production and distribution facility for Latin America and North America, with the company Elica Inc. based in Chicago. The Mexican site is part of the strategic move by the Group in recent years to operate even closer to clients
18 ELICA NFR 2020 OUR IDENTITY 19
Direct Presence 2
AIRFORCE S.P.A. Fabriano
FRANCE ELICA FRANCE S.A.S. Paris
POLAND
ELICA GROUP POLSKA SP.
Moscow/ St. Petersburg
SPAIN ELICA Barcelona
GERMANY ELICA GMBH Munich 3 6 9
CHINA
Z.O.O. Jelcz-Laskowice RUSSIA ELICA TRADING LLC 2 5 8 11
ZHEJIANG ELICA PUTIAN ELECTRIC CO. LTD. Shengzhou Shanghai
INDIA ELICA PN INDIA PRIVATE LTD. Mumbai/ Pune 7 10
JAPAN ARIAFINA CO. LTD. Sagamihara-Shi
MEXICO ELICAMEX Querétaro
USA ELICA INC. Chicago
4
1 Original Equipment Manufacturer
in this market and to take advantage of significant growth opportunities both through the OEM1 business and through the launch and development of own brands.
In Asia, the Elica Group has been present since 2002, the year of the joint venture with Fuji Industrial Co. Ltd., leader in Japan in the production of range hoods and a subsidiary of Elica since 2006. This joint venture led to the creation of Ariafina, a leading brand in Japan for high-end range hoods. In 2005, Elica opened a showroom on Osaka's main shopping street.
In May 2010, the Elica Group entered the Indian market by setting up a joint venture with Mr. Pralhad Bhutada, launching therefore Elica PB India Ltd's operations, based in Pune, manufacturing and selling own brand and third-party brand products and leveraging also the branding and technical knowledge of the Elica Group. Entry into one of Asia's largest markets, featuring among the world's highest growth rates, has been a winning decision thanks to CEO Pralhad Bhutada's stewardship and a distribution and marketing strategy which has delivered.
On September 10, 2018, Elica S.p.A. sold to Whirlpool of India Limited 33% of the share capital of the Indian subsidiary Elica PB India Private Ltd., together with the other Indian minority shareholders disposing of 16%. With completion of the operation, Whirlpool of India Limited acquired in total 49% of the Indian subsidiary Elica S.p.A.. On the basis of the blocking agreement with the Indian shareholders, Elica S.p.A. continues to exercise control over Elica PB India Private Ltd., and fully consolidate the company in its financial statements. Alongside the closing of the agreement and the acquisition of the investment, Whirlpool of India Limited signed an exclusive distribution agreement for a number of its cooking segment products with Elica PB India Private Ltd to speed up the development of its business on the Indian market, leveraging on Elica PB India's distribution structure which, over recent years, has built a comprehensive network of mono-brand stores and reports annual growth rates at over 30%.
In 2010, Elica entered the Chinese market, the world's largest range hood market, by acquiring a majority holding in the Chinese company Zhejiang Putian Electric Co. Ltd., which operates under the "Puti" brand, producing and marketing range hoods, gas hobs and kitchenware sterilisers. Putian possesses a high-quality production base with strong potential for development. The production site is located in Shengzhou, a major Chinese industrial district for the production of home appliances. In 2012, Elica sold Fuji Industrial Co. Ltd. a 3.24% interest in Zhejiang Putian Electric Co. Ltd. The deal, which is proof of the strategic role of the direct presence in this area, consolidated and reinforced cooperative relations with the Japanese partner. Following the share capital increase of the Chinese subsidiary, Elica holds 99.17% of the investment.
Group companies and number of employees (excluding temporary staff)
| Group employees by company | unit | 2020 | 2019 |
|---|---|---|---|
| Elica S.p.A. | No. | 1,102 | 1,138 |
| Leonardo Services S.A. de C.V. | 769 | 706 | |
| Elicamex S.A. de C.V. | 0 | 0 | |
| Elica Inc. | 4 | 5 | |
| Elica Group Polska Sp.z o.o | 622 | 600 | |
| Air Force S.p.A. | 108 | 109 | |
| Ariafina Co. Ltd | 0 | 0 | |
| Elica GmbH | 15 | 14 | |
| Elica PB India Private Ltd. | 451 | 462 | |
| Zhejiang Elica Putian Electric Co. Ltd | 128 | 157 | |
| Elica Trading LLC | 28 | 30 | |
| Elica France S.A.S. | 15 | 16 | |
| Total | 3,242 | 3,237 |
Scope: Elica S.p.A., Elica Group Polska Sp.z o.o, Leonardo Services S.a. de C.V., Elica Inc., Zhejiang Elica Putian Electric Co. Ltd, Elica Trading LLC, Air Force S.p.A., Elica France S.A.S, Elica GmbH and Elica PB India Private Ltd The number of employees, as detailed in this table and all other tables relating to employees, refers to the figure at December 31, 2020.
In 2012, the Company decided to strengthen its direct presence in this market, in which it has operated through its brands since 1995, acquiring full control of the subsidiary Elica Trading LLC, which markets own brand products, such as those of Elica, Jet Air and Turboair. Thanks to its product warehouses, Elica Trading LLC, incorporated in 2011 and with head offices in St. Petersburg and Moscow, directly serves a dense, locally-based distribution network. Today the organisation can ensure improved efficiency and quality on this market in terms of both the product and service offered to its clients and consumers, thanks to a directly operated technical support network.
The Group operates in Europe, the Commonwealth of Independent States, Asia and America. In addition to the Italian headquarters, commercial offices are located in Spain, France, Germany, Russia, Japan, India and the United States, and at year-end 2020 it had seven production facilities in Italy, Poland, India, China and Mexico. The Group is present at the global level both directly (through its commercial offices) and indirectly (distribution contracts).
The Group's revenues are split in 2 main business lines:
a. production and sale of third-party brand home appliances (accounting for approximately 45% of Cooking revenues) b. production and sale of own brand home appliances (accounting for approximately 55% of Cooking revenues)
2. Motors: production and sale of electric motors, also for internal use (accounting for approximately 13% of revenues)
The main distribution channels served for the sale of own brand products and their weight as a percentage of net revenue are shown below:
| Cluster | Total 2020 |
|---|---|
| Major Retailers | 16% |
| Kitchen manufacturers | 47% |
| Others | 3% |
| Wholesalers | 28% |
| Architecture & interior design studios | 6% |
| Total | 100% |
The Elica brand was created in 1970 with an ambitious goal: to bring healthy air to kitchens throughout the world. For over 40 years, Elica brand range hoods have satisfied millions of customers across the world with their design, reliability and innovation.
New and original products are constantly being created to add to the wealth of products developed, the fruit of devoted and intense research focused on innovating not only the aesthetic of the models but the entire production process.
Sold in Italy and in the markets of the Far East and the CIS (Commonwealth of Independent States), the Turboair brand offers mid-range products known for their quality, originality and care of materials.
The brand, created through a joint venture with Fuji Industrial, produces hoods intended for the top end of the Japanese market, where it has succeeded in making a name for itself. Ariafina products harmoniously marry the best Japanese technology with unmistakable Italian design.
This brand, distributed in North America, includes a highly competitive range of products which fully encapsulate the Company's values: reliability, functionality, aesthetics and quality, in keeping with Italian design culture.
This historical brand on the Russian market is particularly appreciated for the capacity of its products to deliver the values of Italian craftsmanship, translating into excellent technical features and high aesthetic quality.
Acquired as part of the Chinese joint venture, Puti is a leading brand in the sector in China, offering hobs and kitchen sterilisers in addition to range hoods. Puti range hoods cater to the medium and high end of the Chinese market, offering competitive products that are highly functional and technologically advanced, with a European-style attention to design.
The FIME brand represents the Elica Group's Motors unit.
Over the years, FIME has developed its presence in electric motors and ventilation systems for home appliances and residential heating and cooling. FIME's biggest clients include major industrial groups in various sectors such as Vaillant, Bosch, Viessmann, Ariston Thermo, BDR Thermea, Riello, Immergas, BSH, Miele, Whirlpool, and Electrolux.
The Company has developed extensive know-how not just in electromechanical design of electric motors, but also in electronic and fluid-dynamic design, which today make it possible for it offer integrated systems. In line with the Elica Group's industrial policy, FIME is also orientated towards production focused on the well-being of the individual and the environment. FIME brand ventilation systems comply with the regulatory requirements concerning sustainability and reduced consumption, in all sectors of application.
Brands and products
RANGE HOODS & COOKING
The Group's strategic objectives, promoted by Elica's Top Management and approved by the Board of Directors, are formulated in a planning process involving all operating segments, markets, head offices and production
facilities.
The Group's strategic plan (Budget, Three-year plan) is monitored by setting and verifying (monthly, quarterly and annually) targets for the dedicated commercial organizations (Markets, OEM and Own Brand Channels and the Motors Division), the Operations area (Manufacturing, Logistics, World Class Manufacturing, Quality and Purchasing), Research and Development and the staff functions (Finance EHS2, Human Resources and IT).
2 Environment Health & Safety
In 2009 Elica joined the World Class Manufacturing Association (WCMA), an international non-profit organisation bringing together companies from various sectors involved in the introduction and the development of this production method which targets ongoing and sustainable improvement.
WCM is a structured and integrated production system, whose main focus is to create a culture of ongoing improvement through the recognition of waste and losses across the entire value chain of the companies applying it. It is structured in ten technical and ten managerial pillars.
WCM prioritises waste and losses through ad hoc tools and methods, with each loss and waste then addressed through specific approaches.
Safety, quality and the environment are key concerns, each reflected in a similar number of technical pillars that work to reduce safety risks and environmental impacts, improving the quality of products, workers' lives and the surrounding environment.
The ten technical pillars are flanked by the ten managerial pillars, which focus - among other matters - on developing talent and recognising everyone's contribution to the improvement of their work.
The approach of prioritizing the problems to be tackled in terms of safety, quality and cost, the use of the most appropriate tools and methods, their strict application and the "pace" of expertise development and of the perimeter, have led WCMA enterprises to deliver excellent results, as recognized by other organizations and associations from both the public and private spheres.
The objective of the Association is to promote the sharing and application of best production practices among partner companies.
Periodic verification of pre-determined activities and objectives, identification of new auditors.
Confindustria is the main association representing manufacturing and service businesses in Italy.
Confindustria's voluntary members include over 150 thousand small, medium and large companies with a total workforce of 5 million.
The association's mission is to support business's role in driving Italy's economic, social and civil growth. To achieve this aim, it designs common strategies, goals and initiatives, in a manner respectful of members' autonomy and sphere of influence, working together with exponents of the economy and finance, Italian, European and international institutions, government, labour, culture and research, science and technology, politics, information and civil society.
Confindustria adds value through its network extending from its Rome headquarters to its Delegation in Brussels (a key point of contact between the entire Italian business community and the European Union) and the 217 member organisations operating in various sectors throughout the territory.
Main activities carried out with Elica Advisory activity: employment law
Assonime is an association that represents Italian joint-stock companies. Assonime, founded on November 22, 1910, pursues the mission, as set out in Art. 2 of its charter, of studying and solving problems that directly and indirectly affect the interests and development of the Italian economy. To this end, the association:
~ strives for the improvement of industrial, commercial, administrative and tax legislation, with particular regard to company law, including in re-
~ strives for the cultural elevation of the economic environment and for a deeper understanding, in Italy and abroad, of the Italian legal system and economic situation, including through periodic publications and monographs; ~ promotes the protection of the collective interests of its members;
~ informs members of legislative and administrative developments and particularly significant international developments in industrial, commercial, administrative and tax matters;
~ conducts and promotes – in some cases in coordination with other institutions – studies and publications on economics and the law and oversees the collection of data and information that may be of interest to members; ~ provides members with clarification and instructions regarding industrial, commercial, administrative, tax and currency legislation.
Institutional relations and networking activity
The Leonardo Committee was formed in 1993 at the initiative of Confindustria, ICE3 and a group of businessmen and men of culture, including Gianni Agnelli and Sergio Pininfarina, with the aim of promoting and establishing
It is no coincidence that the name "Leonardo" evokes the magical intersection of art, science and technology: three forms of expression of human ingenuity that reflect Italy's success at an international level.
Italian quality throughout the world. events.
The Committee brings together over 160 renowned businessmen, artists, scientists and men of culture wanting to join together in furtherance of Italy's development and originality through high-profile cultural and economic
In its activity, the Leonardo Committee cooperates with all institutions responsible for promoting Italian companies abroad and their international expansion efforts. Its members also include top government officials such as the Prime Minister, Minister of Foreign Affairs, Minister of Economic Development and Minister for Cultural Heritage and Activities.
AIDAF – the Italian Association of Family-Owned Companies – was founded in 1997 by Alberto Falck along with a group of like-minded business people. Its members now include over 180 family-owned companies, accounting for approximately 14% of Italy's GDP and employing 600,000. In May 2019, the Chairperson of Elica S.p.A. Francesco Casoli was appointed Chairperson of AIDAF. The Italian Association of Family Businesses (AIDAF) is the only as-
3 Italian Trade Agency. ICE is the Agency for the promotion abroad and international expansion of Italian businesses.
4 Family Business Network
5 National Research Council
sociation specifically dedicated to matters of interest to small, medium and large family businesses, involving all members of business-owning families. The association is active in three main areas:
~ Training and empowerment of members of associated families.
~ The exchange of experiences and ideas through the organization of op portunities to meet to facilitate networking between member busi -
vours family businesses.
Institutional relations and networking activity
-
The Adriano Olivetti Institute (ISTAO) is one of the longest-running manage ment training schools in Italy. It was founded in 1967 by the economist Gior gio Fuà with the support of the Adriano Olivetti Foundation, the Social Sci ence Research Council and the CNR 5 . The Institute has always taken inspiration for the culturally and civically ori ented training of its managerial students from the figure of Adriano Olivetti himself, who championed entrepreneurship as a moral and productive duty. The institute's methodology is based on experimentation and experience within a corporate context, in the conviction that the best way to learn is face to face with the operational and professional world. The formula fa vours learning by producing over traditional note-taking lessons.
Main activities carried out with Elica Elica is a supporting partner of the Adriano Olivetti Institute with the aim of co-designing training for its own managers and benefiting from an advance selection of Masters candidates from among recent graduates.
The ISTUD (Institute of Management Studies) Foundation was the first inde -
pendent Business School in Italy.
Since 1970, it has been dedicated to management training and research, cre ating and organising inter-company and tailor-made training programmes for managers and professionals in all roles and sectors, and post-graduate courses for selected young talents from across Italy.
Elica works with ISTUD to select people trained with innovative methods, a focus on digital technology and close links with national and multina tional managers and companies. The partnership also gives Elica manag ers access to the ISTUD Masters programmes, which are constantly up dated and oriented at facing up to emerging challenges and change in the labour market, organizations, business and general society.
The Advertising Standards Council of India (ASCI), of which Elica PB India is a member, was set up in 1985 and is committed to the cause of self-regulation in advertising, guaranteeing the protection of consumer interests. ASCI was established with the support of all four advertising related sectors, i.e. advertisers, advertising agencies, media (including television and press) and others, such as public relations agencies and market research companies.
The Confederation of Indian Industry, to which Elica PB India complies, works to create and support a favourable environment for the development of India, partner industries, government and civil society, through targeted consulting processes.
Elica S.p.A. is a member of the CFI - the "Intelligent Factory" National Technology Cluster, an association of stakeholders (companies, universities, research centres and business associations) involved in the advanced manufacturing sector. The CFI is acknowledged for its role in driving the sustainable economic growth of communities throughout Italy, fostering innovation and specialization in national manufacturing systems.
Its main areas of activity are: automation, industrial efficiency and sustainability, innovation in production processes and the optimal use of human resourc-
es in production facilities.
Since April 2019 (and for the next three years), Elica is also represented on the Coordination and Management Body. In addition, Elica S.p.A. also participates in the "Marche Manufacturing Cluster - Industrial Innovation Center" as a member of its Management and Control Board.
Elica S.p.A. is on the Steering Committee of the Industrial Engineering degree courses (Mechanical and Management) of the Polytechnic University of Le Marche. One of the main purposes of the Committee is to foster and promote relations between the university and the manufacturing base, bringing university training courses closer to the needs of the working world and monitoring the adjustment of the curricula offered by the courses to the indications provided by businesses.
It is also a member of APPLiA Italy and Europe - the Home Appliance Manufacturers Association. APPLiA contributes to enhancing the competitiveness and sustainable development of industry manufacturers and aims to ensure access to all the knowledge needed to design innovative, sustainable (i.e., energy-efficient) and high-performance products.
By complying with the Code of Conduct, members ensure that consumers and customers receive data on product performance (as stated in manufacturer's catalogues and websites) that has been scientifically measured according to a structured testing process in line with European regulations.
Elica S.p.A. è anche membro del working group "Cappe" in veste di Capogruppo in Italia e di Technical Advisor in Europa.
Elica S.p.A. is also a member of the "Range Hoods" working group as parent company in Italy and Technical Advisor in Europe.
In reference to its Motors unit, Elica S.p.A. is a member of EVIA – European Ventilation Industry Association, an association of manufacturers and stakeholders focusing on the residential and non-residential indoor ventilation industry. At European and domestic level, EVIA promotes the application of energy-efficient ventilation systems which closely consider the environmental, health and comfort aspects that ensure good indoor air quality in facilities and buildings.
Elica is also a member of ASSOTERMICA, the association within Confindustria that represents Italian manufacturers of heating system equipment and components. The association's main goals are promoting energy efficiency and protecting the environment in accordance with European directives.
Elicamex is a member of AERI (Asociación de Ejecutivos de Relaciones Industriales), whose mission is to update salary surveys, report on developments relating to labour laws, keep abreast of new best practices and form a regional network of local companies.
Air Force is a founder and supporter of the Non-profit association "Made in Fabriano Academy" (based in Fabriano), whose mission is to promote manufacturing companies in Fabriano by supporting their visibility and value.
The main charitable-giving initiatives in which Elica participates are described
below.
The Ermanno Casoli Foundation, established in 2007 in memory of Elica's founder, promotes initiatives in which contemporary art becomes a means of spreading knowledge and methods capable of improving the working environment and triggering processes of innovation, with the goal of sup porting relations between art and business.
A pioneer in exploring the potential for dialogue between art and indus try, the Foundation has made a name for itself in Italy as an avant-garde promoter of the use of contemporary art in company training, through in creasingly structured, specialized activities capable of spurring interaction between these two worlds in furtherance of their respective goals.
The basis of the Foundation's activities is the conviction that contempo rary art, in its role of provoking thought, contributes to breaking traditional paradigms of common thinking, allowing individuals who come into contact with it to enter a mental and emotional state of openness to unexpected
possibilities.
This makes contemporary art particularly suited to creating open, innova tive experiential environments. The Foundation promotes projects in which art and corporate organizations feed into one another, triggering original processes of innovation that stimulate creativity and reinforce teamwork.
The works of art in the Elica Corporate Collection are the product of in teraction between employees and internationally renowned artists. This unique, specific collection of works has been featured in the volume Global Corporate Collections (2015), dedicated to the world's one hundred most beautiful corporate art collections.
At Elica the Foundation finds fertile ground for experimenting with the processes and outcomes of all its activities, so that they may then be applied
in other settings.
The main initiative organised by the FEC in 2020 was "Gentile come un ritratto" ("Fine as a Portrait"), a workshop held in Fabriano in September that grew out of CEO Mauro Sacchetto's desire to create a work of art with strong ties to the company. The Ermanno Casoli Foundation invited Matteo Fato, one of the leading artists of his generation, to create a collective work together with 160 Elica employees.
Opening in September 2016, Iris Garden is an Italian/English learning centre for children from three to six years of age. A place where various sensibilities, families, educators and Fabriano-area companies come together, Iris Garden is an initiative of high social value with a focus on the youngest members of society. The centre is the brainchild of Francesco Merloni, with support from Ariston Thermo and Elica, and is run by the social cooperative Mosaico.
The initiative is of considerable social value and offers a strategic vision focused on the youngest members of society. The center, whose teaching staff include native speakers of both English and Italian, is a place where children can develop their cognitive abilities and hone the skills required to become bilingual in a setting offering full immersion in the English language.
The initiative seeks to foster access by children aged three to six to an avant-garde educational institution with deep roots in the community, based on an internationally recognized pedagogical approach developed in Italy (the Reggio Children Approach) and bilingual teaching (in Italian and English), which together facilitate a positive process of growth and learning from an early age.
Elica believes that excellence should not be promoted by focusing on the business environment alone, but also by ensuring excellence in the local communities from which the company springs.
Accordingly, the Group is committed to facilitating the development of tools and actions aimed at achieving wellbeing both in the workplace and in society as a whole.
The Elica group's global logistics organization is responsible for managing the entire sequence of businesses processes, from order receipt to delivery of the product to the customer. It plays a central coordinating role aimed at ensuring that all affected processes are fully aligned with the Group's strategies and promote their standardization and ongoing improvement. The central organisation has departments dedicated to the two main business divisions, Cooking and Motors.
Its main areas of activity are:
The management of finished product stock and customer service is coordinated by headquarters, that sets the relative levels to ensure service to the end customer and the optimization of production resources.
The coexistence of a B2B and B2C is an important, distinctive characteristic of the Group that also entails the coexistence of two different management models: B2B relates to the direct order by the customer of third-party brand products (make-to-order) and B2C relates to the models for forecasting demand for own brand products (make-to-stock).
In order to serve the B2C segment, our distribution organisation is broken down by region (Italy, Germany, France, Russia, Poland and North America etc.), and there is therefore a dedicated team for each geographical area within the organisation.
Products are distributed both directly by the first-tier warehouses located near the production facilities and by the second-/third-tier warehouses located in the various geographical areas.
The extensive variety and complexity of the product line entails the management of approximately 450 different suppliers based throughout the world. Approximately 40% of current spending on the purchase of materials and components originates in low-cost countries (China, Mexico, etc.), whereas the remaining 60% originates with EMEA suppliers.
The Motors division produces approximately 27% of products for internal use, meaning they are used in hoods sold by the Group itself (captive pro-
duction), and 73% for external clients.
The production of motors for non-captive clients is broken down into three
main segments:
~ Ventilation (25% of units produced) ~ Home appliances (40% of units produced) ~ Heating (35% of units produced)
For this division, the organization distributes motors to clients throughout the world directly from the tier-one warehouse.
36 ELICA NFR 2020 OUR IDENTITY 37 36 ELICA
Elica S.p.A. is a joint-stock company listed on the STAR segment of the Italian Stock Exchange since 2006 which operates in compliance with the By-Laws that govern its activities and operations.
The Casoli family exerts control over Elica S.p.A. indirectly through Fintrack S.p.A., the majority shareholder of FAN S.r.l., in turn majority shareholder of Elica S.p.A.. Francesco Casoli, who holds a majority of the share capital of Fintrack S.p.A., indirectly exercises legal control over the Company, pursuant to Article 93 of the Consolidated Finance Act.
The corporate object of the Company's activities under the By-Laws is: the exercise, on its own behalf and on behalf of third parties, of the industry of construction of electromechanical and mechanical articles, steel production and the production of articles in synthetic resins and similar, the trade, including electronic trade, of the products deriving from the aforementioned activities and processing, even if produced by others; the production and sale of household appliances and components for the electromechanical and mechanical industries; the creation of services and the processing of accounting data on behalf of subsidiaries and associates, including via the use of IT systems, accounting machines and computers of all kinds; the creation of consultancy services within the scope of its own activity, including the activity of product testing.
Elica S.p.A. adopts the Self-Governance Code promoted by Borsa Italiana as its corporate governance model (last version published July 2018) and adopted on October 30, 2020 the Self-Governance Code of January 2020. A traditional administration and control model is followed:
~ Company management is exercised by a Board of Directors (BoD, supported by the Internal Board committees: Appointments and Remuneration Committee and Control, Risks and Sustainability Committee)
~ The supervisory functions are carried out by a Board of Statutory Auditors. ~ The statutory audit and accounting control are carried out by the audit firm appointed by the Shareholders' Meeting.
~ A Supervisory Board has been set up in accordance with Legislative De-
Articles 16 and 24 of the By-Laws respectively govern the appointment and replacement of directors and members of the Board of Statutory Auditors, with the application of slate voting. Only shareholders who individually or collectively hold at least 2.5% of the share capital – or a differing minimum percentage provided for or allowed by current regulations – have the right to
For further details, reference should be made to the By-Laws available on the website https://elica.com/corporation.it, Corporate Governance section, on
present slates. that of Borsa Italiana S.p.A..
Francesco Casoli Director & Chairman BoD
Cristina Finocchi Mahne Non-Executive Independent Director
Mauro Sacchetto Director & C.E.O.
Elio Cosimo Catania Non-Executive Independent Director
Giovanni Tamburi Non-Independent Directr
Barbara Poggiali Non-Executive Independent Director
Federica De Medici Lead independent Director
The Company's Board of Directors is composed of executive, non-executive directors with adequate skills and professionalism. As per Article 16 of the By-laws, the Company is administered by a Board of Directors made up of a minimum of 5 members to a maximum of 11 members including non-shareholders.
Currently, the Board of Directors consists of seven members, four of
whom are independent as per the Self-Governance Code and the CFA6. With regard to gender balance, the Company has complied with the latest regulatory changes by approving, on October 30, 2020, the amendments to the By-Laws, which reserve two-fifths of the positions on the ad-
ministrative and control bodies to the under-represented gender. The average age of the Directors in office at the date of the Report is 60, with 3 Directors in the 48-55 age bracket and 4 in the 57+ age bracket.
The Company's By-laws provide that the Board of Statutory Auditors consist of three standing auditors and two alternate auditors. The Board of Statutory Auditors of Elica S.p.A. is composed of three members, one of whom is female. The average age of the Statutory Auditors in office at the date of the Re-
For details on the process and the appointment and replacement criteria, on the executive director succession plan and on the experience and expertise of the directors and the members of the Committees, reference should be made to the Corporate Governance and Ownership Structure Report.
port is 60 years. effectiveness.
The Board Evaluation is a key feedback tool for the Board of Directors to carry out an in-depth evaluation of the performance of the Board itself and of the Board Committees and to improve, where necessary, efficiency and
The self-assessment requested of the Board concerns, in particular, the size, composition and functioning of the body and of its committees. For information on the procedures and outcome of the self-assessment conducted, see the Corporate Governance and Ownership Structure Report.
6 Consolidated Finance Act
The remuneration of directors and, in particular, those holding executive office, is a key incentive and control mechanism to ensure the integrity and efficacy of the corporate governance mechanisms. These remuneration policies target the achievement of the Group strategy and are an essential tool to align the interests of shareholders with those of management. The remuneration system is in addition part of a wider framework to attract, satisfy and maintain the most suitable personnel to ensure the company's success.
Development of the individual and equal opportunities, which have always been at the heart of Elica's culture, are the "ethical" base on which the remuneration systems are built.
With regards to the instruments utilized, the "annual remuneration policy" in the Group remuneration report - to which reference should be made - comprehensively outlines the Remuneration Policy and its implementation at the company with regards to the members of the management bodies and the senior executives.
Elica's remuneration system, always based on the principles of the Self-Governance Code, is a key instrument to:
With regards to senior executives, this goal is achieved also through linking a significant part of remuneration to the reaching of the pre-set performance objectives, established through "management by objectives" (MBO) and longterm incentive (LTI) plans.
For the other executives, as well as for many professionals, variable remuneration is based on "Management by Objectives" plans, which, linked to the performance management (PM7) system and the evaluation of managerial skills enabling the achievement of objectives, incentivize the contribution of everyone regarding not only quantitative but also quality performance indicators.
Fixed remuneration is generally defined according to the content of the positions and a market benchmark for each role, weighted according to professional expertise and seniority, where applicable.
In Italy, the national collective bargaining contract for the metalwork and plant installation industry, or that for Industry Executives for executive roles, is applied to both Elica and Air Force.
7 The PM (Performance Management) process is the Elica Group's main People Development and assessment process.
| unit | 2020 | 2019 |
|---|---|---|
| No. | 68.95 | 64.67 |
| 3.53 | 4.16 | |
| 2.47 | 2.53 | |
| 21.37 | 40.15 | |
| 8.86 | 9.85 | |
| 19.83 | 14.81 | |
| 35.24 | 35.46 | |
| 87.67 | 92.69 |
The role of the Elica Board of Directors is crucial in identifying and pursuing the company's strategic objectives. The By-Laws effectively grants it the widest powers for the management of the Company: it may carry out all acts and operations that it considers necessary to achieve the company object, except for those attributed by law to the Shareholders' Meeting or arising from specific authorizations required by the By-Laws. The following matters are within the exclusive competence of the Board of Directors:
merger and spin-off resolutions in the cases established by Articles 2505
the opening, transfer and closing of secondary offices;
the indication of which Directors may represent the company;
the issue of non-convertible bonds within the limits set out in Article 2412 of the Civil Code and convertible within the limits set by Article 2420-ter
and 2505-bis, of the Civil Code;
of the Civil Code;
nal territory;
the reduction of the share capital in the case of return of shares by sha-
updating the company by-laws and the shareholder meeting regulation in accordance with law;
the transfer of the registered office to another municipality in the natio-
the reduction of the share capital where losses are greater than one-third of the share capital and the Company has issued shares without nominal value.
Ratio between higher compensation and total median compensation
Scope: Elica S.p.A., Elica Group Polska Sp.z o.o, Leonardo Services S.a. de C.V., Elica France S.A.S, Elica GmbH, Zhejiang Elica Putian Electric Co. Ltd, Elica Trading LLC, Air Force S.p.A. Elica PB India Private Ltd.,
Based on the powers conferred, the Board of Directors: ~ examine and approve the strategic, industrial and financial plans of the Company and of the Group, periodically monitoring their implementa
-
-
~ define the nature and level of risk compatible with the strategic objecti ves of the company, including in their assessments all risks considered significant with regard to the sustainability of the medium/long-term
~ evaluate the adequacy of the organizational, administration and accoun ting system of the Company and of its subsidiaries having strategic im portance, which has been implemented by the executive directors with particular reference to the internal control and risk management system; ~ evaluate the general operational performance, taking into account, in particular, the information received from executives, as well as periodical ly comparing the results with the budgets. In particular, the Board eva luates the general operational performance, on the occasion of the ap proval of the quarterly and half-yearly reports;
operations;
addition to their years of service.
~ consider operations of the Company and its subsidiaries, when such ope rations have a significant strategic, economic, equity or financial impor tance for the Company or when the Executive Directors consider the in volvement of the Board appropriate, although not relating to significant operations. The Board motions of the Issuer concerning subsidiary ope rations are justified also by the need to expressly authorise significant operations or certain decisions which need to be approved, according to regulations or the by-laws, by the shareholders of such companies.
~ Following the entry into force of Consob Regulation No. 17221/10, the Board identified specific criteria for the identification of significant tran sactions, in accordance with the provisions of attachment 3 of the regu lation. In addition, the Board undertakes all decisions not specifically at tributed to the Executive Directors. The decisions, which due to their subject or amount are not within the remit of the executive directors, are those which, indirectly, the Board has considered of particular strategic, economic, equity or financial significance.
~ Carry out, at least once a year, an evaluation on the functioning of the Board and of its Committees, and also in relation to its size and composi tion, taking account also of the professional qualifications, experience also of a managerial nature - and the gender balance of its members, in
Elica adopts principles of conduct and control which seek to avoid possible conflicts of interest. The By-Laws establish that the executive bodies report on at least a quarterly basis to the Board of Directors and the Board of Statutory Auditors on the exercise of their powers and in particular on operations in which they have an interest, on their own behalf and on behalf of third parties.
The composition of the Board of Directors ensures the neutrality of decisions with a majority of independent directors (four of seven at December 31, 2020).
In addition to the statutory requirements, the Company adopts prevention and control policies in this regard, including through the implementation of the 231 Model and the Company's Code of Ethics. The Company also encourages the development of a corporate culture that centres around the principles of transparency, ethics, fairness and the respect of applicable rules. The recipients of the 231 Model shall adopt appropriate behaviour to avoid conflicts of interests. Alongside the 231 Model, which is regularly updated, the Company has adopted a Related Parties Transactions Policy, in addition to an Anti-Corruption Policy, which outline principles to prevent possible conflict of interests and regulate them where necessary.
Governance and risk management processes are the responsibility of the Internal Control and Risk Management System ("ICRMS"). The System is a set of guidelines, rules and organisational structures designed to safeguard stakeholders by facilitating the identification, measurement, management and monitoring of significant risks.
The control carried out through the ICRMS concerns the operational processes implemented by Management and the processes for identifying and managing operational, financial and compliance risks.
The ICRMS works on three levels:
| Cluster | Description |
|---|---|
| Strategic | Risks that could threaten the competitive position and the achievement of the Group's strategic objectives |
| Financial | Risks that may threaten the Group's financial equilibrium and business performance |
| Governance & Compliance | Risks that identify dangers arising from non-compliance with laws, internal regulations and/or contractual obligations of the Group that may cause damage, even to a serious extent, to its reputation |
| Operating | Risks inherent in the Group's operations that may arise from human error, inefficient internal systems and processes, unlawful conduct, interruption of products and servic es or accidents/incidents that may cause harm to people or the environment |
| Pure (or insurable) | Risks associated with external events such as natural disasters, fire, terrorism, robbery etc. |
The current risk mapping, updated annually, is the result of analyses contained in the "Risk Profile" document, an analysis of relevant risks, and the "Context Identification" document, an integral part of Elica S.p.A.'s Quality, Environment and Safety Management System. For further details on the efficacy of the Risk Management Model, reference should be made to the Corporate Governance and Ownership Structure Report.
Internal Audit therefore complement and monitor that carried out by the ICRMS. Since October 2019, the Internal Audit function has been carried out by an internal manager reporting directly to the Board of Directors, who plays a key role in defining and assessing the internal control system and the risk prevention and management policy.
The purpose of this policy is to consistently adopt an effective global model for identifying relevant risks, using methods of mapping and prior assessment of potential negative impacts on the business and interested parties, identifying the control measures currently in place or to be introduced to mitigate the risk. The current mapping of risks can be traced to five CLUSTERS, as represented in the following table:
46 ELICA NFR 2020 ELICA'S SUSTAINABILITY FOOTPRINT 47
In order to provide a clear, complete account of the social and environmen tal value created by the Group and how its actions seek to monitor and man age its sustainability footprint as effectively as possible, it will firstly be neces sary to clarify what is meant by "sustainability footprint".
The "sustainability footprint" is a way of analyzing the management sys tem for an organization's activity that can be used to determine its economic, environmental and social impacts based on specific indicators.
Properly measuring the nature of the effects and context for the organiza tion's activities is essential to an increasingly thorough analysis and increasing ly informed management of such a strategic aspect of the Elica Group.
With regards to that outlined above, the Group's activities are undertaken in full compliance with the Code of Ethics (approved by the Board of Directors most recently on March 24, 2017) which, through all of the indications con tained therein, acts as a reference for: ~ the running of an ethical business; ~ continued compliance with the various applicable regulations; ~ the undertaking of all activities according to moral and ethical principles;
~ consistently keeping in mind the moral and social responsibility that the
Despite the fact that in 2020 the Group's activities - and therefore its strategic choices - have been impacted by the global COVID-19 pandemic, the "Sustainability On Air" project was drawn up and approved by the Board of Directors of Elica S.p.A. on October 30, 2020, whose main objective is to increasingly integrate sustainability strategies - maximising their value into business development plans. A medium-term period (three years) to contin ue to generate benefits for the environmental and social issues affecting the communities in which the Group operates, through an innovative strategy to continue to "do things well" and to "do them differently", thereby sharpen ing the benefits and mitigating the negative impacts - while always meeting the needs and expectations of its stakeholders.
The centrality of the individual and of the social and environmental habi tat in which the individual lives is thus key to the development of the strate gies implemented by the Group, which as part of its continuing focus on excellence seeks to optimize and pursue sustainable growth to the fullest possible extent, in the view that such growth is strategic to the creation of long-term social and economic value.
~ Year-in year-out measurements and analyses of sustainability performances give us a greater awareness of the direction we are tracing with our sustainable footprints. The effective implementation of qualitative and quantitative management improvements and of socio-environmental impact and risk reductions demonstrates to the whole group and its stakeholders the direction we are taking, of which some examples are given below.
The Group operates in a multinational setting and its products, services and local activities are capable of influencing various entities that in turn – through their roles, activities and expectations – may directly or indirectly influence the Group's performance and have a significant impact on the or-
Periodic stakeholder mapping is the result of a multi-disciplinary approach that involves the contribution of all top management (as outlined in
ganization's decisions. the previous paragraph). be the most encouraging over time.
By way of ongoing dialogue, dedicated meetings in conjunction with corporate or industry events, the cooperation of dedicated collaborators, press releases, surveys, etc., the Group continuously reinforces its commitment to improvement and to confirming and extending the approaches that prove to
The table below summarises the Group's main stakeholders:
The following table presents the main methods of communication, listening and involvement that Elica undertakes with its stakeholders, taking into account their expectations to be met:
| 2020 stakeholders | Communication, listening & engagement channels |
Expectations and interests of stakeholders with regard to Elica |
2020 stakeholders | Communication, listening & engagement channels |
Expectations and interests |
|---|---|---|---|---|---|
| Shareholders and General Management (CRSC, BoD, CEO) |
CEO: Business Review, Shareholders: Road show, Shareholders' meeting, Reporting BoD: board meetings |
Shareholders: Business Continuity and Performance. Return on investment, CEO, BoD and CRSC: Business Continuity and Performance, Business sustainability |
Media | Direct contacts, Press releases, Publica tions, Communication system during/post event, |
Company reputation |
| CRSC: committee meetings | strategies over M/L term, company fair value recognition. |
Trade unions | Direct channels, sharing three-year plans | Protection of workers, attention to listening, conditions in the workplace |
|
| Employees | Availability of organisational charts and job descriptions, job postings, Management Operative System (MOS), "State of the art of our people" report, Non-Financial Report, Personal Behaviour Review, Vittoria RMS portal |
Long-term development of job role, clarity of procedures to be executed, adequate train ing, availability of adequate resources, occu pational well-being-health & safety, suitable workloads, skills consistent with role, clarity of roles and objectives, professional growth |
Scientific/Research & Development partners |
Research centres/Universities: Joint development of protocols/projects, direct communications |
and reliability |
| Trade associations | Direct contacts, Press release | Accurate information, expertise and | Supervisory Board | Direct contacts, presentations, minutes | Legislative compliance |
| professionalism, reliability on sensitive data. | Other company functions (Business Unit General Managers |
Rolling Business Plan, Business Review, Management Review, dedicated meetings |
|||
| Local Institutions and regional governments |
Press Release, publication of corporate governance report, NFR, reporting and implementation of requirements, local institutional channels |
Availability and competence of the company personnel/process managers involved in the activity under review. Communication trans parency. Compliance with Applicable Laws |
and Area Managers) | ||
| Global Community | Press releases, communication system during/post event, operating recovery |
||||
| Investors and financial operators | Consolidated Financial Statements, Road show, Shareholders' Meeting, Press Re lease, Reporting |
Transparency, timeliness and parity of information, stock trends |
procedures | ||
| Consumers - End customers | Direct contacts (ad hoc communications from the key account), industry events, Showtrailer |
Business continuity, environmental reputation, performance excellence, innovative, reliable and safe products, on-time delivery, effective and efficient service. |
National and international standardisation bodies |
Direct contacts, consultations, on-site inspections/audits, Non-Financial Report, reporting, and implementation of requirements |
to which they refer |
| External audit bodies | Management review, periodic on-site | ||||
| Local communities | Press releases, communication system during/post event, operating recovery procedures |
Environmental prevention and respect, containment of environmental impacts, protection of the surrounding area, improvement or maintenance of social/ economic/environmental conditions. |
reviews and audits, implementation of internal improvement actions, reporting and implementation of requirements. |
Systems to applicable rules. | |
| Banks and other lenders | Negotiations, bid gathering, reports and press releases |
||||
| RM & ancillary suppliers Partner Businesses |
Research centres/Universities: Joint development of protocols/projects, direct communications Suppliers: direct contacts, reports |
New opportunities and business continuity, business profitability, punctuality of payments |
relationship |
| 2020 stakeholders | Communication, listening & engagement channels |
Expectations and interests of stakeholders with regard to Elica |
|---|---|---|
| Media | Direct contacts, Press releases, Publica tions, Communication system during/post event, |
Transparency and accuracy of information. Develop an ongoing, trusting relationship. Company reputation |
| Trade unions | Direct channels, sharing three-year plans | Protection of workers, attention to listening, active participation in improving safety conditions in the workplace |
| Scientific/Research & Development partners |
Research centres/Universities: Joint development of protocols/projects, direct communications |
Collaboration stability, company reputation Identification of technology trends for new product development, product performance and reliability |
| Supervisory Board | Direct contacts, presentations, minutes | Legislative compliance |
| Other company functions (Business Unit General Managers and Area Managers) |
Rolling Business Plan, Business Review, Management Review, dedicated meetings |
Adequacy of management resources, sustain ability of business and company reputation, staff engagement, clarity and appropriateness of roles, process performance |
| Global Community | Press releases, communication system during/post event, operating recovery procedures |
Preservation of natural resources, environmental and social sustainability |
| National and international standardisation bodies |
Direct contacts, consultations, on-site inspections/audits, Non-Financial Report, reporting, and implementation of requirements |
Compliance with regulations, Introduction of Management Systems and fulfilment of requirements related to the standards to which they refer |
| External audit bodies | Management review, periodic on-site reviews and audits, implementation of internal improvement actions, reporting and implementation of requirements. |
Availability and competence of the compa ny personnel/process managers involved in the activity under review. Communication transparency. Compliance of Management Systems to applicable rules. |
| Banks and other lenders | Negotiations, bid gathering, reports and press releases |
Group financial solidity Business continuity over the M/L term, stability of the business relationship |
The Group is managed, according to the traditional governance system, by a Board of Directors with a central role in identifying and achieving the company's objectives.
The Board of Directors, made up of 7 members whose mandate will expire when the 2020 financial statements are approved, is made up as follows:
For further information on the experiences and competences of the directors and members of the committees, please refer to the Report on Corporate Governance and Ownership Structures and to the paragraph regarding GRI102-22 and GRI102-28 of this document.
Elica Group is aware of the importance of correct information as indispensable for building a relationship of trust with the financial community.
The Investor Relations department and top management maintain an ongoing dialogue with investors and financial analysts in compliance with the criteria of transparency, timeliness and parity.
Despite the challenges arising from the global spread of the COVID-19 health emergency, financial communications and interaction with investors and analysts continued normally in 2020. More specifically, interactions with the financial community involved the organization of quarterly conference calls for the presentation of financial results, as well as participation in numerous virtual meetings. In particular, the Group participated in the Star Conference (held in May and October 2020) and in Consumer Day (in September 2020), virtual events which were organized by Borsa Italiana, as well as in the Virtual Roadshows organized by Intermonte SIM and Intesa Sanpaolo IMI in November and December 2020, respectively. Therefore, opportunities for communication and interaction with the markets were no fewer than in 2019, and actually increased, thereby ensuring constant updates for the financial community in this period of great uncertainty.
The website also remains a key tool for providing timely information. Indeed, the Group's website is promptly updated to coincide with the presentation of results and other market communications.
Stock coverage was guaranteed during the year, as it was in 2019, by three primary brokers. The Elica Group closed 2020 with a market capitalization of approximately Euro 193.7 million (average market capitalization in December), up from 2019's Euro 191.8 million.
8 Davide Croff was an independent director until
February 11, 2020
MEDIA The Group's Financial Media Relations department guarantees external communications with national, local and international media and the correct disclosure of corporate messages to the relevant public, thus protecting the reputation of Elica Group's various activities. The department also monitors off-line and on-line traditional media in order to intercept any information of interest to the Group. The Group's financial communications are managed by controlling and monitoring all communication processes contemplated by the Italian Consolidated Finance Law and by the communications and transparency best practices adopted by other listed companies. In particular, the financial communications carried out by the Group are subdivided in:
~ Mandatory communications: the disclosure of periodic and price-sensitive financial data to stakeholders and the general public as required by law and relevant authorities (e.g., the Italian Companies and Exchange
~ Business communications: promoting the company's core activities, including opportunities to enhance the visibility and reputation of the Group, such as interviews with top management published via major me-
In 2020, financial communication activities also included the management and issue of press releases to coincide with the publication of periodic data, such as quarterly, half-yearly and yearly financial statements, price-sensitive business, governance and shareholder communications, and business press interviews and article contributions.
The Materiality Analysis has guided the Elica Group since its initial report in the choice of topics to be covered, so as to give full and clear representa tion of the extent of the financial, environmental and social impacts of the Group's activities. Again in reporting on the year ending December 31, 2020, materiality is the key to understanding the sustainability of our Group.
The workgroup, created at the corporate level, has internally identified the tools, sources and criteria for assessing a very wide range of topics, which are measured according to various metrics. All the topics on which to report were identified in a balanced matter through a combined assessment of:
~ evaluation of external relevance of the theme, ~ evaluation of internal relevance of the theme.
(All information of a general nature 9 regarding the Group – assumed to be highly relevant to stakeholders in the interest of a complete, clear picture of the overall organizational structure of the Elica Group, from which the topics subject to reporting arise organically – have been excluded from the periodic materiality analysis process.)
In order to identify the topics that may influence stakeholders' decisions regarding the Elica Group, the frequency of the indirect expressions of inter est by the stakeholders in sustainability topics was measured using 3 main
tools:
analysis of external press releases;
ding key clients and competitors; concerned.
A team representing all company departments at the corporate level col lectively assessed, in various meetings, all relevant topics in the light of the impacts of the Group's activities and all topics identified through the exter nal priority analysis, assigning them an internal relevance score, with each topic either linked to a reporting standard, where possible, or analysed to identify its core for reporting purposes, where no specific GRI standard was applicable.
On conclusion of the meetings, the Elica Group's Materiality Matrix for 2020 took shape, comprising 16 GRI topics and 4 "custom" topics (a relevant topic or impact that was not adequately represented in the GRI Standards), relating to high priority topics, whether internal or external, and topics with at least medium priority for both analysis guidelines and as represented by the matrix in the following table:
9 This expression refers to the GRI standards marked with number 102.
| High | GRI 419 GRI 201 GRI 207 |
GRI 302 GRI 305 GRI 405 GRI 306 GRI 307 GRI 308 |
GRI 403 GRI 205 GRI 404 GRI 416 GRI 401 INNOVATION |
|---|---|---|---|
| Medium | GRI 202 GRI 301 GRI 303 GRI 412 DIGITIZATION ELECTR. WASTE BRAND MGMT |
GRI 204 GRI 406 ECO DESIGN GRI 206 GRI 414 |
GRI 417 GRI 418 |
| Low | GRI 203 GRI 304 GRI 407 GRI 411 GRI 409 GRI 415 PRODUCT END-LIFE TRANSPORT EFFICIENCY COMMERCIAL PARTNERS CARBON NEUTRAL MOB. SENSIBILITY & EDU |
GRI 402 GRI 408 GRI 410 GRI 413 RELIABILITY & LONGEVITY BUSINESS INTEGRITY INSPIRING CAPACITY NEW TECH INVESTMENTS LIFESTYLE QUALITY |
FINANCIAL DATA AFTERSALES SERVICE |
| Frequency $Index = RI$ |
Low | Medium | High |
The 2020 Matrix was reviewed and approved by the Board of Directors on October 30, 2020, following review by the Control, Risks and Sustainability Committee at its meeting held on October 22, 2020.
The following is a list of the topics found to be material in the materiality analysis process, together with the relevant GRI standard, where applicable, according to which they have been reported. An appropriate reporting scope was then set out for each topic, as specifically described for each indicator reported on below.
| Material Topic | Number of the GRI Standard | Title of the GRI Standard |
|---|---|---|
| Supplier management | GRI 204 | Procurement practices |
| Fight against corruption | GRI 205 | Anti-corruption |
| Respect for the competitive system | GRI 206 | Anti-competitive behaviour |
| Tax | GRI 207 | Tax |
| Energy consumption | GRI 302 | Energy |
| Emissions into the atmosphere | GRI 305 | Emissions |
| Waste | GRI 306 | Effluents and waste |
| Compliance with environmental laws | GRI 307 | Environmental compliance |
| Group employees | GRI 401 | Employment |
| Workplace health and safety | GRI 403 | Occupational Health&Safety |
| Training | GRI 404 | Training and Education |
| Diversity and Equal Opportunities | GRI 405 | Diversity and Equal opportunities |
| Fight against discrimination | GRI 406 | Non-discrimination |
| Consumer Health and Safety | GRI 416 | Customer Health&Safety |
| Correctness of the information provided to the consumer GRI 417 | Marketing and labeling | |
| Consumer privacy protection | GRI 418 | Customer privacy |
| Application of socio-economic regulation | GRI 419 | Socio-economic compliance |
| Innovation | NON GRI | Innovation |
| Product design (eco-friendly) | NON GRI | Eco Design |
| Economic and financial performance | NON GRI | Financial Highlights |
| After sales costumer care | NON GRI | After Sales Service |
Note: "NO GRI" means that the indicator has been created by the Group in order to represent a topic or material impact that was not found to be adequately represented in the GRI Standards Considering the importance of tax for the Group's stakeholders, and in the interests of transparency, it has been decided to voluntarily report on this topic following a materiality analysis.
All changes relating to the GRI Disclosures presented in the following table are the product of the application of the materiality analysis process carried out in 2020. The numbering of the data pages for which the restatement is performed refer to the 2019 NFR.
The following table presents the topics which, as a result of the findings of the 2020 materiality analysis and the assessments made by the team, are not reported:
| Material Topic | Number of the GRI Standard | Toitle of the GRI Standard |
|---|---|---|
| Direct economic value generated and distribuited | GRI 201 | Economic performance |
| Use of raw materials and of materials | GRI 301 | Materials |
| Water consumption | GRI 303 | Water |
| Environmental check on the supply chain | GRI 308 | Supplier environmental assessment |
| Checks on application of Code of Ethics by the supply chain GRI 414 | Supplier social assessment | |
| Digitization of products | NON GRI | Digitization |
In the table "Employees (headcount) by function and gender" (pg. 130), the figure for male production workers decreased from 1,991 to 1,990 due to a decrease in employees in the 30-50 age range, which changed from 626 to 625. In the same table, the figure for female production workers increased from 1,246 to 1,247 due to a change in employees in the over-50 age range, which increased from 233 to 234.
In the table "Employees (headcount) by level and gender" (pg. 131), the figure for "blue-collar workers between 30 and 50 years of age" decreased from 1,045 to 1,044, due to the movement in the "male blue-collar" figure, which decreased from 577 to 576, whereas "blue-collar workers over 50 years of age" increased from 492 to 493 due to the movement in the "female blue-collar" figure, which increased from 233 to 234.
In the "Employees (headcount) table by gender and contract type" (pg. 132), the figure for "male" employees on "permanent contracts" in Italy decreased from 763 to 762, while "female" employees on "permanent contracts" increased from 463 to 464. The total "male" figure decreased from 1,991 to 1,990, while the total "female" figure increased from 1,246 to 1,247.
In the "Employees (headcount) table by type of employment (full-time or part-time) (pg. 132), the figure for "male" employees working "full-time" decreased from 1,989 to 1,988, while "female" employees working "part-time" increased from 34 to 35. The total "male" figure decreased from 1,991 to 1,990, while the total "female" figure increased from 1,246 to 1,247.
GRI 301, 303, and the custom topic Digitization are not reported as they are not material. As regards material topics that are not reported, however, it should be noted that:
for-like exchange rates). EBITDA.
investment.
An organisation's tax approach defines how the organisation balances tax compliance with its business activities and the ethical, social and sustainable development expectations of its stakeholders.
The Company's tax compliance and approach has always been guided by transparency and legality. During the year, transactions between subsidiaries took place. All transactions were conducted on an arm's length basis in
the ordinary course of business.
With regards to transfer prices - applied to transactions between Elica S.p.A. and Elica Group Polska and Elicamex - specific Ruling agreements were signed with the National Tax Authorities.
| Entity | Country | Revenue Third parties |
Revenue Group |
Profit before taxes |
Income taxes paid |
Income taxes as per Income Statement |
Number of employees (excluding temporary staff) |
|---|---|---|---|---|---|---|---|
| Elica S.p.A. | Italy | 266,296 | 73,502 | (5,882) | 2,707 | 1,102 | |
| Airforce | Italy | 25,544 | 390 | 764 | (212) | 108 | |
| EGP | Poland | 2,816 | 96,797 | 1,778 | 72 | (54) | 622 |
| Elica France | France | 18,136 | 29 | 185 | 40 | (73) | 15 |
| Elica GMBH | Germany | 8,087 | 48 | (314) | - | 0 | 28 |
| Elica LLC | Russia | 10,955 | 62 | 528 | 51 | (127) | 15 |
| Europe | Europe | 331,834 | 170,829 | (2,941) | 164 | 2,241 | 1,890 |
| Putian | China | 3,814 | 6,512 | (5,064) | - | - | 128 |
| Ariafina | Japan | 25,309 | 20 | 5,071 | 1,832 | (1,717) | - |
| Elica India | India | 31,827 | 109 | 7,092 | 2,159 | (1,577) | 451 |
| Asia | Asia | 60,950 | 6,641 | 7,098 | 3,990 | (3,294) | 579 |
| ElicaMex | Mexico | 59,504 | 56 | 4,282 | 607 | (1,226) | - |
| Leonardo | Mexico | - | 9,962 | 483 | 221 | (311) | 769 |
| Elica Inc | Mexico | - | 887 | 34 | 18 | (22) | 4 |
| The Americas | The Americas | 59,504 | 10,905 | 4,799 | 846 | (1,559) | 773 |
Figures are expressed in thousands of euros
The technological innovation activity that Elica carries out at the service of the entire Group seeks to continuously generate a set of solutions (components, modules and techniques) validated from a performance and safety point of view, to be used for the generation of new and competitive prod-
ucts/services.
The EPL10 Research & Innovation team was added, both physically and hierarchically, to EPL with the goal of accelerating the design-implementation-testing phase of each individual technical solution. Direct access to EPL's equipment is a plus for optimising continuous innovation.
The EPL Research & Innovation team also includes the Cooking Technologies area. Its scope of action has therefore been extended to include
The new model to introduce technological solutions has been called NTI (New Technology Introduction) and incorporates and completes the model
everything within Elica's core business. developed to date - the ETRL11. the central consideration.
The main focus of investigation of the ETRL (Elica Technology Readiness Level) is the product macro-functionality: powering (performance and noise), filtering, user experience, lighting, sensors. For each of them, the aim is to improve or generate new features while always having the consumer as
Research and innovation are incorporated into the processes of the R&D area of the business management system MOS12; various types of monitoring tools are applied and all information is recorded.
The ETRL is divided into four phases of progress and oversight:
~ Orientation Phase: potential technologies and product architectures are identified through the pre-selection and positioning of the available technologies in what are known as the Innovation roadmaps;
~ Technology Feasibility: the appropriate technology is selected and the product layout is studied through preliminary tests in a laboratory envi-
~ Technology Validation: a preliminary functional prototype is created with a detailed product architecture layout, primarily tested in a labora-
~ Prototype Validation: a complete functional prototype is created, meaning that a detailed prototype designed is created and requirements are identified through testing in real conditions (as well as in the laboratory).
NTI introduces two additional phases, one prior to the Orientation phase and one following Prototype Validation, as follows:
~ Specification Definition: the minimum specifications (performance, timing, cost) needed before beginning the next phase are defined and discussed together with marketing;
~ Delivery: the component/module validated by way of the ETRL moves to the next phase (engineering and production) by providing all documentation (designs, wiring diagrams, golden samples, etc.).
| 10 Elica P | |
|---|---|
| 11 Elica Te | |
| 12 Manag | |
| and the state of the state of the state of the state of the state of the state of the state of the state of th |
10 Elica Propulsion Laboratory
11 Elica Technology Readiness Level
12 Management Operation System
Total number of innovation projects effectively implemented into the business and implementation index
| unit | 2020 | 2019 | |
|---|---|---|---|
| Innovation projects introduced in business | No. | 8 | 9 |
| Innovation projects developed | 59 | 49 | |
| Number of persons employed in the project | 9 | 10 | |
| Percent effective innovation implementation index | 14% | 18% |
Scope: Elica S.p.A. for the entire Group because the activity is performed for the benefit of all subsidiaries.
solutions invented by the organization
| unit | 2020 | 2019 | |
|---|---|---|---|
| New patent applications filed | No. | 8 | 12 |
| Number of overall active documents (granted and subject to evaluation) |
288 | 207 | |
| Percent of existing patents generated during the reporting year | 2.78% | 5.80% |
Scope: Elica S.p.A. for the entire Group because the activity is performed for the benefit of all subsidiaries.
During their time in the system, all projects may be halted at any phase of development if performance is not consistent with objectives, the cost of the final product or of development is too high or it does not meet usability, safety and aesthetic requirements.
Progress through the various phases is monitored using the following tools: ~ Document management system: through the use of CAD13 and Windchill PDM Link14 technical documents, used to store the three-dimensional models deriving from projects in their partial or definitive forms.
~ Laboratory test system (Elica Propulsion Laboratory), where all tests generated during the prototyping and testing phases are stored.
The total number of innovative projects developed increased due to the team's inclusion of cooking-related expertise, although the number of projects entering production naturally declined as a result of the pandemic that began in March 2020, contributing to the cancelation of Milan's FTK2020, the biannual industry event that is one of the most strategically important of its kind at which to present new, highly innovative products.
13 Computer-Aided Design
14 Data, document and product development
process management software
Elica Group considers it a priority to maintain the high quality of its offering of products and related services, in response to the evolving needs of consumers and in line with the highest standards on the market. This priority is an integral part of maintaining loyalty and protecting the company's image and reputation, in accordance with the Group's Code of Conduct. In this regard, the renewed commitment to a structured and geographically distributed organisation was behind the need to review the entire Customer Support process and all related aspects. After all, "Love customers, and serve them with passion" is first among the company's values.
The need for an After-Sales process is thus synonymous with "Customer Orientation", going far beyond mere legal obligations. For this reason, a more structured After-Sales organization came into play in 2019 with a new team capable of responding quicker and more decisively in resolving cus-
tomer issues.
The contact centre network, outsourced from our Service Providers or directly implemented in Italy and Spain, employs a dedicated Customer Relationship Management system to manage support requests from end-consumers and to provide product information and continuous support, in order to constantly improve the customer journey.
The Technical Support Service is offered by Service Providers throughout Europe and support centres directly managed by Elica After-Sales (approximately 80 centres in Spain in 2019, and 180 in Italy from this year). The After-Sales department constantly monitors and promotes the service quality of technical support teams and contact centres through regular inspections and dedicated training for Service Provider and Support Centre specialist operators, with traditional courses, on-line training and qualification tests. Special training courses are also organized for the launch of new products. During 2020, around 200 technicians operating on the main markets were trained. Additionally, the After-Sales department provides approximately 8 to 10 training courses per year to call centre operators strictly dedicated to Elica, in order to focus attention on a variety of issues (e.g. updating of the functions of the SAAM++15 management system, installation methods, solutions to technical issues, call avoidance). Each technical training session features a formal test and evaluation.
The performance of our Service Providers is constant monitored using multiple KPIs relating to the management of issues, including in particular:ù
~ Right First Time: percentage of technical issues resolved on the first visit
In 2020, the Elica Service also received an excellent award from the German Institute for Quality and Finance (ITQF), which conducts market surveys to analyse the financial and qualitative aspects of companies engaged in various sectors.
15 Specialist after-sales service management
software
| Indicators | unit | 2020 | 2019 |
|---|---|---|---|
| Service Level: Days between the customer's 1st call and issue resolution |
work days | 13.2 | 10.6 |
| Speed of Service: Days between the customer's 1st call and 1st customer appointment |
work days | 10.2 | 5.6 |
| Right First Time: % of interventions resolved on the first appointment | % | 75% | 66% |
Scope: Elica SpA for items produced by Elica SpA, Elica Group Polska, sold in the EMEA market.
For each of the 152 markets analysed, an SES16 score was calculated on the average service level.
The Elica Service placed among the top 5. This is the best performance by a Service in their first year of activity.
| Suppliers | unit | 2020 | 2019 |
|---|---|---|---|
| Procurement budget spent with local suppliers | € | 168,272,206 | 226,273,058 |
| Total procurement budget | 260,813,786 | 323,755,709 | |
| % spent on local suppliers | % | 64.5% | 69.9% |
For the manufacturing of its products, Elica relies on suppliers of goods operating in a range of segments, principally for the procurement of metal, plastic and electronic components, glass and packaging, in addition to service suppliers. Most suppliers are multinational groups, primarily based in EMEA, Mexico and China.
Elica Group total purchases in 2020 totalled Euro 260 million, of which 64.5% purchases from local suppliers, due to the increasingly international
The percentage of expenditure from local suppliers increased in Mexico and China, and fell slightly in Italy and Poland, essentially due to variability
scope of procurement. in the mix of volumes and production.
All the Elica Group's suppliers are compliant with the RoHS II17 and
REACH18 regulations governing the presence of substances deemed hazardous to health in goods purchased. Although the Elica Group largely serves multinational corporations, the global scale of which does not allow for social discrimination, by requesting compliance with its Code of Conduct and 231 Model, the Elica Group demands of its main suppliers a firm commitment to respecting human rights.
17 Restriction of Hazardous Substances Directive 18 Registration, Evaluation, Authorization and
Restriction of Chemical
Italy has a medium-high risk of exposure to corruption, particularly in the area of public tenders. In order to prevent and contain events that may repre sent a risk for the commission of corruption offences, Elica has approved a Code of Ethics contained in the 231 Organisational Model (in compliance with Legislative Decree No. 231 of June 8, 2001). All forms of corruption, without exception, are prohibited by the Company and its subsidiaries, which have fully implemented the Code of Ethics with adjustments, in some cases, to the local situation. The Organization and Management Model adopted by Elica is based on the following principles:
~ Identification of company processes and mapping of company risk activities;
~ Establishment of a Supervisory Board; ~ Monitoring of corporate conduct and of documentation for every signifi-
~ Adoption of a disciplinary system for sanctioning any failure to comply with the prescriptions and procedures of the Organizational and Manage -
~ the circulation at all company levels of the established conduct rules and
Compliance with the Code of Conduct, which is based on the fundamental principles of legality, honesty, fairness, integrity, confidentiality and transpar ency, is critical for the prevention of corruption. Just as important are the essential duties of workers and civil, criminal, administrative and contractual legislation. The Code is available on the corporate website:
https://elica.com/corporation/it/corporate-governance/area-231.
The Italian subsidiary Air Force SpA has mapped potential situations that might lead to the offences, including corruption, covered by the model.
The subsidiary in Mexico, a country with a high risk of corruption, is aligned with the Group's principles and operates in accordance with the Code of Eth ics. It then obtained CTPAT19 certification and is working toward OEA certifi cation (Operadores Económicos Autorizados), whose goal is to strengthen supply chain security, identify security gaps and implement specific security
measures and best practices.
Generally speaking, there are then efforts within the Group to mitigate this risk, such as implementing specific induction and training programs. Opera tional, financial and compliance-related audits are also conducted. For each potential irregularity, legal and other consultants are called upon for ongoing support in order to ensure compliance with applicable laws and regulations. Elica has, in addition, prepared a specific policy, also shared with the vari ous subsidiaries, which expressly states that the purpose of the document is to set out the rules for preventing and combating corruption, with the ulti mate goal of ensuring that all employees and associates are aware of the rules to be followed and the behaviour to be adopted to avoid involvement in cases of corruption. For tenders, the Policy specifies that the Group's rela tions with representatives of the Public Administration (P.A.), in all possible forms, must be based on strict compliance with the Anti-Corruption Regula tions and may not in any way compromise the integrity and reputation of the
Group.
19 Customs Trade Partnership Against Terrorism
Generally, specific control standards are set with regard to the following categories of activities at risk of commission of acts of corruption:
For Policy purposes, all Group companies are required to abide by the following principles in the organisation of personnel and the definition of company processes:
In addition to the adoption of the dedicated Policy, various processes have been implemented to prevent and mitigate issues of corruption, including limitation of the use of cash, monitoring of the selection of suppliers and indirect purchases, even if not regulated by specific procedures, policies to regulate the receipt of gifts, benefits and invitations from third parties, and control of employee recruiting and rewarding, transfer pricing and sponsorship deals that Elica SpA usually does not stipulate.
The control of the Group by bodies independent from management is an additional measure for the prevention of offences. Elica S.p.A.'s internal auditing activities serve as a further means of control.
Processes and Group companies subject to corruption risk assessment
Lastly, the Whistleblower Protection Procedure forms part of the aforementioned prevention system: the employees of both Elica SpA and Air Force have several channels, including a dedicated e-mail address, to report any offence. In Poland and Italy, in addition to a dedicated e-mail address, a multi-purpose box has been made available for making suggestions to improve process and for reporting any irregularities, anonymously or otherwise. As for 2020, no episodes of corruption were detected.
| Processes | unit | 2020 | 2019 |
|---|---|---|---|
| Total number of processes assessed* | No. | 5 | 5 |
| Total number of processes** | 11 | 11 | |
| Percentage of processes assessed | % | 45% | 45% |
| Group Companies | unit | 2020 | 2019 |
| Total number of Group companies assessed* | No. | 5 | 5 |
| Total number of Group companies | 11 | 11 | |
| Percentage of Group companies assessed | % | 45% | 45% |
Scope: Elica S.p.A., Zhejiang Elica Putian Electric Co. Ltd, Elica France S.A.S., Elicamex S.a.d. C.V, Leonardo Services S.a. de C.V., Elica Inc., Elica Trading LLC,
Air Force S.p.A., Elica PB India Private Ltd., Elica Group Polska Sp.z o.o, Elica GmbH. * The companies who have adopted the 231 Model and/or who undertake audits - even qualitatively - on the matter, are considered as assessed, while the companies which have anti-corruption similar or equivalent policies are not considered as assessed. **At least one process for each Group company was identified which directly or indirectly seeks to prevent the risk of corruption.
| unit | 2020 | 2019 | |
|---|---|---|---|
| Employees to whom anti-corruption policies and procedures have been circulated |
No. | 2,846 | 2,311 |
| % Employees to whom anti-corruption policies and procedures have been circulated |
% | 87.9% | 71.4% |
| Employees who have received anti-corruption training hours | No. | 1,146 | 872 |
| % Employees who have received anti-corruption training hours | % | 35.4% | 26.9% |
| Anti-corruption training hours by professional | No. | 1,305 | 1,399 |
Scope: entire Group
All activities other than and/or in addition to mere dissemination of the policy have been considered as training. In order to quantify the figure, when training hours could not be determined, one-half/one hour of training was considered for each employee. Since classification by category is not uniform it cannot be applied and has not been reported.
| unit | 2020 | 2019 | |
|---|---|---|---|
| Total number of assessed incidents | No. | 0 | 0 |
Scope: Elica S.p.A., Zhejiang Elica Putian Electric Co. Ltd, Elica France S.A.S., Elicamex S.a.d. C.V, Leonardo Services S.a. de C.V., Elica Inc., Elica Trading LLC, Air Force S.p.A., Elica PB India Private Ltd., Elica Group Polska Sp.z o.o, Elica GmbH.
Freedom of economic initiative gives companies ample room for action in carrying out their activities. However, they must also take account of the need to ensure correctness and fairness in competition, which, in accordance with applicable legislation, cannot exceed certain, predetermined boundaries of lawfulness. Articles 2598 et seq. of the Italian Civil Code, which concern the sanctioning of unfair competition, are to be interpreted in
this regard.
The value of free competition according to the principles of correctness, fairness and transparency in dealing with all operators on the market is outlined in the Group's Code of Ethics. The Organization and Management Model (231 Model), as well as the Code of Conduct that forms part of it, prevents the risk of unfair competition by promoting fair and transparent conduct. Although Elica does not have a specific policy dedicated to the subject, in drafting other policies and defining commercial relations with its main customers, it adopts clauses to prevent occurrences of unfair competition, does not compare its products or prices with those of its competitors, and avoids relationships of any kind with competitors, except with OEM customers. The commercial policy is oriented to avoiding agreements or situations of risk. Based on the information available to the organisation, there is no evidence of anti-competitive conduct.
80 ELICA NFR 2020 THE ENVIRONMENTAL SUSTAINABILITY FOOTPRINT 81
82 ELICA
Our Group has long been committed to viewing the environment as an important – and indeed essential – resource to safeguard and preserve. Elica SpA was one of the first Italian companies to be ISO 1400121 certified. At present, all the Elica Group's production facilities associated with significant environmental risks relating to transformation and production activities – with the exception of the Air Force facility – have adopted 14001:2015 com pliant Environmental Management Systems.
The planet we live on and impact is a finite resource, and we have an ob ligation to deliver it to future generations in conditions that will not compro mise their well-being.
The Group's business processes have been designed and organized and are conducted with utmost respect for the environment, with a view to imple menting strategies that minimize the risk of environmental damage through the progressive reduction of impacts generated by its business activities.
The significant environmental impacts relate to the processes of transfor mation, distribution and use of the Group's products. The data and informa tion presented refer to various reporting scopes depending on the indicator
being analysed.
Every Group process that generates an environmental impact is conduct ed in full compliance with applicable laws and regulations, as well as with other environmental provisions, prescriptions, norms and standards con tractually or voluntarily signed.
Every year, the Group sets goals for the achievement of ever greater sus tainability in relevant business processes, so as to protect the natural envi ronment of its production sites and promote optimal relations with local
communities.
In view of these goals, in addition to ensuring that its certified Environ mental Management System is constantly implemented, it circulates and fa cilitates the understanding by its management of the procedures and con tents of the Code of Ethics drafted in accordance with Legislative Decree 231/2001 and the Group's Policies and Procedures.
The environmental management systems at the certified sites provide for the rolling out of improvement plans which, on the basis of assessments of the environmental aspects and impacts associated with the processes and activities carried out, focus on the objectives of reducing waste or inefficien cies which, for the environmental topics, translate into a more responsible use of resources employed in a more significant manner in the transforma tion processes.
The Group is constantly committed to ensuring compliance with environ mental regulations, whether they are in force at local, national or interna tional level or are part of the supply contracts with customers. This is primar ily, but not exclusively, to minimise the risk of administrative and/or criminal sanctions for its directors and to protect its reputation. To support systems and make them effective, the Group is committed to rais ing the level of awareness and competence of those who, through their work activities, can make real a difference regarding specific environmental aspects. Again in 2020, in confirmation of the efficacy of the environmental man agement systems, there were no cases of no cases of non-compliance, fines or proceedings against the Elica Group with regards to environmental laws
and/or regulations.
21 International standard indicating requirements for an effective environmental management system
Design has always been one of Elica Group's most distinctive features
Bringing an environmentally sustainable approach to this pervasive element in all our products, especially those intended for end-consumers, was
Fruit of this constant commitment is the continuing development of Elica's Eco-friendly Packaging Design System.
In those years in which environmental sustainability topics were considered less relevant, Elica's product packaging design strategy was based on a substantially reactive approach that, against outside requests (mainly from customers), triggered an analysis of the feasibility/advisability of redesigning existing packaging to better meet the needs indicated by the client.
The Packaging Design System developed over the years includes a series of environmental guidelines for approaching environmentally-friendly design from a product and process standpoint by applying the 7 design for Envi-
Raw material saving Containment of raw materials used in packaging and consequent reduction of weight against similar product and performance
Reuse Concerns reusing the packaging several times, for the same use for which it was conceived
Use of recycled material Substitution of a portion or the totality of virgin raw material with recycled material to contribute to a reduction in the use of natural resources
Logistics optimisation All innovative actions that improve the operations of storage, the optimisation of loads on pallets and transport and improve the relationship between primary, secondary and tertiary packaging
Facilitating recycling activities All innovations to simplify the recovery and packaging recycling phases, such as the production of single material packaging
Packaging system facilitations Achieved by integrating multiple functions in a single packaging component, eliminating elements and thus simplifying the system
Energy saving / CO2 reduction Concerning the upstream and downstream phases of the production line, thanks to the use of new production processes, the use of recycled materials and the reduction of energy consumption on the supply chain. This is also achieved by reducing the means used for the distribution of the product from the production point to the point of sale, the use of renewable energy and the reduced use of raw materials.
| Packaging re-engineering projects concluded during the year | ||||
|---|---|---|---|---|
| unit | 2020 | 2019 | ||
| Number of packaging re-engineering projects | No. | 1 | - | |
| Scope: Elica S.p.A. | ||||
| Total reduction in the weight of packaging reaching the market by re-engineering solutions affecting products developed during the year |
||||
| Product family | unit | 2020 | ||
| Range hoods | tons | 19.6 |
Scope: Elica S.p.A.
The strategic Packaging Design approach aimed at assessing the overall "process" impact is guiding Elica towards a redesign of the packaging for the existing range, starting with the most relevant SKUs in terms of volumes.
The mechanisms and guidelines related to the integrated and Design-For-Environment (DFE) approach generated in recent years to support the re-engineering of existing packaging have made it possible to assess the environmental validity of new projects launched in late 2019 and early 2020, setting environmental sustainability as one of the significant parameters to be used when validating packaging solutions. In order to support the process and make it even more robust right from the initial stages of development, in addition to the existing trial-and-error approach22 (with the use of the DFM23 and FEA24 approaches to assess robustness virtually), immediate stress testing was implemented in 2020 using a video camera inside the packaging during the testing phase.
22 The trial-and-error approach is a heuristic methodology aimed at identifying a solution to a problem by making an attempt at a solution and then checking whether that attempt has produced the desired effect.
23 Design For Manufacturing
24 Finite Element Analysis
As mentioned previously, the benefits from the re-engineering solutions resulted in the receipt of the Conai Award for the savings within the project in terms of reduced global warming potential (GWP), lower gross energy requirement (GER) to produce packaging, and less water consumed during the production of packaging (see table below).
The consumption of energy carriers during transformation phases are constantly monitored in order to analyse trends and benchmark specific ef -
ficiency improvement projects.
From this perspective, thorough monitoring of the main indicators relat ing to the use of energy resources makes it possible to measure the resulting levels of the indirect emissions generated.
Energy consumption decreased compared to 2019 due to the combined effect of fewer hours worked (as a result of the shutdowns required during the first few months of the COVID-19 emergency) and the knock-on effect of a number of energy-efficiency projects executed in the second half of 2019 (particularly at the Mergo site). The sites in Italy and Poland (where energy consumption is more significant) all reached their savings targets in terms of normalized consumption (kwh/machine hour) of -2% and -4% compared to 2019 figures. The higher consumption of Natural Gas is linked in part to the greater use of the Mergo paint plant (which, however, records better KPI figures than in 2019) and the die-casting plant (Castelfidardo).
At the Italian production sites of Castelfidardo and Cerreto d'Esi, three photovoltaic plants are operational, which in 2020 produced a total of 1,239,891 kWh of renewable electricity (equal to about 4,460 Gj ), of which about 74% was self-consumed by the Italian sites (7.4% of the total energy
used).
These plants therefore contributed to reducing indirect CO 2 emissions by more than 650 tons equivalent from the emissions of about 360 vehicles in the Italian fleet.
The constant reduction of the environmental impact of the energy con sumption of Elica's products in use – in particular those for which an energy labelling obligation exists – is a goal that Elica pursues both during the new product design phase and for the re-engineering of existing products. By deploying the competencies and assets of its EPL Laboratory, the organiza tion can measure in advance the impact of each finished product placed on the market and then study and implement all technical improvement solu tions that may reduce its energy consumption. In order to monitor this activ ity, products marketed by Elica SpA and Elica Group Polska are monitored in terms of average consumption, which again fell (by 18.3%) in comparison with 2019 (-43.9% on the 2014 baseline), and in terms of energy efficiency, which improved by 3.3% in 2020.
Another aspect of environmental protection is the efficient management
of business trips.
Elica S.p.A. therefore adopts a business trip policy which encourages em ployees to consider video and teleconferencing as an alternative to travel, thereby containing as much as possible consumption and indirect emissions and also delivering cost savings. 2020 was heavily influenced by the global pandemic, which resulted in a sharp reduction in business travel.
Fuel consumption in countries with production activities (offices and sites)
| Consumption of fuels from non-renewable sources | unit | 2020 | 2019 |
|---|---|---|---|
| Natural gas | Mc | 2,478,827 | 2,297,991 |
| Diesel | Litres | 2,670 | 7,403 |
| Petrol | 0 | 0 | |
| LPG | 32,538 | 37,652 | |
| Natural gas | GJ | 89,362 | 82,843 |
| Diesel | 96 | 266 | |
| Petrol | 0 | 0 | |
| LPG | 773 | 894 | |
| Total | 90,231 | 84,004 |
Scope: Elica, Elicamex, Elica Group Polska, Putian, Air Force, Elica India
Note: consumption has been calculated using data collected from suppliers, invoices and consumption monitoring software.
| Consumption of fuels from renewable sources | unit | 2020 | 2019 |
|---|---|---|---|
| Bioethanol | Litres | 800 | 820 |
| Biodiesel | 0 | 0 | |
| Bioethanol | GJ | 17 | 17 |
| Biodiesel | 0 | 0 | |
| Total | 17 | 17 |
Scope: Elica, Elicamex, Elica Group Polska, Putian, Air Force, Elica India
Note: consumption has been calculated using data collected from suppliers, invoices and consumption monitoring software.
| Emissions from consumption of fuels from non-renewable sources | unit | 2020 | 2019 |
|---|---|---|---|
| Natural gas | tCO2e | 5,073 | 4,703 |
| Diesel | 7 | 20 | |
| Benzina | 0 | 0 | |
| LPG | 50 | 57 | |
| Total | 5,130 | 4,780 | |
Scope: Elica, Elicamex, Elica Group Polska, Putian, Air Force, Elica India Note: emissions have been calculated using the emission conversion factors published in the "DEFRA conversion factors" and "Terna international comparisons".
| Energy consumption unit |
2020 | 2019 |
|---|---|---|
| kWh Electricity |
24,286,221 | 25,819,555 |
| From non-renewable sources | 22,492,110 | 23,803,443 |
| From renewable sources | 922,616 | 953,314 |
| District heating | 871,495 | 1,062,798 |
| Total | 24,286,221 | 25,819,555 |
Scope: Elica, Elicamex, Elica Group Polska, Putian, Air Force, Elica India. Note: consumption has been calculated using data collected from suppliers, invoices and consumption monitoring software, 2018 data on district heating, used only at the Elica Group Polska site, has not been reported since it is incomplete or relies on estimates not considered sufficiently reliable.
Scope: Elica, Elicamex, Elica Group Polska, Putian, Air Force, Elica India. Note: emissions have been calculated using the emission conversion factors specific to each country in which Group companies are based, published in the "DEFRA conversion factors" and "Terna international comparisons", 2018 data on district heating, used only at the Elica Group Polska site, has not been reported since it is incomplete or relies on estimates not considered sufficiently reliable.
| Emissions from consumption of fuels from renewable sources | unit | 2020 | 2019 |
|---|---|---|---|
| Bioethanol | tCO2e | 0.007 | 0.007 |
| Biodiesel | 0 | 0 | |
| Total | 0.007 | 0.007 |
| . | ||
|---|---|---|
Scope: Elica, Elicamex, Elica Group Polska, Putian, Air Force, Elica India Note: emissions have been calculated using the emission conversion factors published in the "DEFRA conversion factors" and "Terna international comparisons"
| Number of flights and km travelled | unit | 2020 | 2019 |
|---|---|---|---|
| Flights | No. | 615 | 1,858 |
| Air km travelled | Km | 1,697,898 | 6,313,141 |
Scope: Elica S.p.A., Elica Group Polska Sp.z o.o., Leonardo Services S.a. de C.V., Zhejiang Elica Putian Electric Co. Ltd, Elica France S.A.S. Elica GmbH, Air Force S.p.A, Elica Trading LLC
Note: distances have been calculated on the basis of routes taken by employees estimated via the website
http://www.worldatlas.com/travelaids/flight_distance.htm.
| Fuel consumed during motor vehicle commutes | unit | 2020 | 2019 |
|---|---|---|---|
| Diesel | Litres | 237,061 | 349,040 |
| Petrol | 46,974 | 58,179 | |
| Total | 284,034 | 407,219 |
Scope: Elica S.p.A., Elica Group Polska Sp.z o.o., Leonardo Services S.a. de C.V., Zhejiang Elica Putian Electric Co. Ltd e Elica France S.A.S. Elica GmbH, Air Force S.p.A, Elica Trading LLC, Elica PB India Private Limited
Note: distances travelled have been calculated on the basis of the fuel expense sheets.
| Emissions from vehicle and airline business journeys | unit | 2020 | 2019 |
|---|---|---|---|
| Car | tCO2e | 736.52 | 1,072.27 |
| Diesel | 637.17 | 938.15 | |
| Petrol | 99.35 | 134.12 | |
| Air | 427.09 | 1,541.81 | |
| Total | 1,163.61 | 2,614.07 |
Car emissions scope: (Diesel and Petrol): Elica S.p.A., Elica Group Polska Sp.z o.o., Leonardo Services S.a. de C.V., Zhejiang Elica Putian Electric Co. Ltd e Elica France S.A.S. Elica GmbH, Air Force S.p.A, Elica Trading LLC, Elica PB India Private Limited
Air emissions scope: Elica S.p.A., Elica Group Polska Sp.z o.o., Leonardo Services S.a. de C.V., Zhejiang Elica Putian Electric Co. Ltd e Elica France S.A.S. Elica GmbH, Air Force S.p.A, Elica Trading LLC,
Note: emissions have been calculated using the emission conversion factors published in 2018 by the Department for Environment Food & Rural Affairs English.
Elica pays great attention to the issue of waste.
The recording of site process and activity generated waste types and quantities, with classification and accounting through specific indicators in accordance with local legislation, allows the Group to constantly monitor volumes and to identify alternative solutions for reducing quantities.
The personnel of the local EHS functions based at the various production facilities are tasked with monitoring document deadlines and requirements relating to waste management. Particular attention has been devoted to identifying, disposing of and storing waste, as well as to all practices relating to the transport and disposal of hazardous and non-hazardous waste.
In all processes and activities that produce waste, Elica is committed to management methods that envisage reusable containers for the movement of production materials on-site or between different sites, in order to reduce, wherever possible, secondary and tertiary packaging waste.
Over 99.7% of the waste generated in 2020 is not hazardous. The percentages of waste recovered/recycled (95%) to waste disposal (5%) re-
mained stable.
| Performance Indicators Hazardous waste |
|||||||||
|---|---|---|---|---|---|---|---|---|---|
| Hazardous waste produced by disposal method | unit | 2020 | 2019 | ||||||
| Recycling | t | 29 | 37 | ||||||
| Recovery, including energy recovered | 7 | 19 | |||||||
| Landfill | 12 | 22 | |||||||
| Total | 48 | 78 | |||||||
| Non-hazardous waste produced by disposal method | unit | 2020 | 2019 | ||||||
| Reuse | t | 54 | 58 | ||||||
| Recycling | 13,952 | 13,330 | |||||||
| Landfill | 721 | 647 | |||||||
| Hazardous waste produced by disposal method | unit | 2020 | 2019 |
|---|---|---|---|
| Recycling | t | 29 | 37 |
| Recovery, including energy recovered | 7 | 19 | |
| Landfill | 12 | 22 | |
| Total | 48 | 78 | |
| Non-hazardous waste produced by disposal method | unit | 2020 | 2019 |
| Reuse | t | 54 | 58 |
| Recycling | 13,952 | 13,330 | |
| Landfill | 721 | 647 | |
| Total | 14,727 | 14,035 |
Scope: Elica, Elicamex, Elica Group Polska, Putian, Air Force, Elica India Scope: Elica, Elicamex, Elica Group Polska, Putian, Air Force, Elica India
Note: consumption has been calculated from invoices and company monitoring software.
At December 31, 2020, Elica Group personnel numbered 3,24225, of which 39% women – with 71% involved in productive activities and 29% involved in support roles; open-ended contracts at the end of the year numbered 2,830 and fixed-term contracts 412. During the year, 859 people were hired, with an outgoing personnel turnover rate of 26.3% (comparison of the number of departures against the total number of employees), against an incoming turnover rate of 26.5%.
The countries with the most critical turnovers are Mexico and Poland; however, the former improved in 2020 compared to 2019, while the latter remained stable. Such turnovers are mainly determined by blue-collar dy namics, strongly influenced by extremely low unemployment rates, as well as high industrialization and economic growth in areas where the group's facilities are located.
The main risks of a non-virtuous turnover management are loss of corpo rate know-how and labour cost increases for the replacement of resources leaving group companies, as well as the increase in training costs for incom ing employees. At the same time, the loss of expert personnel can affect the efficiency of production and administrative processes.
The management of employees in 2020 was heavily impacted by the global COVID-19 pandemic. The need to safeguard the health of its employ ees, in addition to business continuity has led Elica to adopt a series of safe ty measures in line with local government regulations (e.g. recourse to layoff schemes in the countries where it operates, provision of personal protective equipment), alongside organisational and technological solutions that guarantee the continuity of operations and professional relations, while at the same time investing in a sense of belonging and inclusion (e.g. remote working, visual indications at Elica's offices, use of spaces to guarantee dis tance). All of the group's premises have provided office sanitisation and staff entrance body temperature measurements. In order to reinforce the person al and professional commitment that employees have shown towards the company during these exceptional times, senior management waived their bonuses for 2020, while the remainder of those with variable components of remuneration received 50% of the nominal value of their bonuses.
During the lockdown of March-April 2020, Elica SpA took various actions in support of employees so as to engage them in coming up with new ways
This is how Radio Elica was born; with the goal of keeping people close in a period of significant social distancing by bringing information, news and moments of entertainment, while also giving a voice to workers with a
A COVID-19 insurance policy was also immediately established for all em ployees, and a flu-vaccine campaign offered vaccinations for all employees
of working together again. bi-weekly schedule. and their families free of charge. demic situation.
In accordance with local legislation, Elica Russia provided COVID-19 testing every two weeks, which involved no less than 90% of all employees.
The corporate integration events that have taken place in recent years (e.g. Family day in Poland) have not been confirmed as a result of the global pan -
25 Excluding temporary workers
At Elica SpA, due to COVID-19 restrictions, the eighth edition of the We Are programme, for children aged 12 to 16 of company employees, could not be held. This successful programme combines an English language course, recognized by the British Council, with fun extra-curricular activities, such as climbing, archery, fencing, quad biking, and more.
Despite this year of global pandemic, the following main activities were able to be implemented by group companies to improve personnel and workplace conditions.
In the belief that stable employment relationships over time are essential to supporting employee growth and development, Airforce has introduced training plans and incentive systems to help reach goals in order to create a positive climate and limit the risk of high levels of turnover.
Elica Americas has enhanced its transport service for employees. In 2019, the company also implemented a system to monitor turnover weekly.
Elica Group Polska planned for 2020 periodic salary reviews, the maintenance of health insurance, the provision of transportation services for employees and improved company canteen services, increasing the credit available to employees.
Elica Putian for this year has planned measures to engender the loyalty of key employees through loyalty bonuses and dedicated career development plans.
Elica PB India has carried out analyses of employees' salaries and leaves of absence. The company has also implemented a strategy to attract more talent that in 2019.
Employees by gender, role and level (excluding temporary workers)
| Employees (headcount) by function and gender |
unit | 2020 | 2019 | |||||
|---|---|---|---|---|---|---|---|---|
| Male | Female | Total | Male | Female | Total | |||
| Employees engaged in production activities | No. | 1,172 | 896 | 2,068 | 1,187 | 888 | 2,075 | |
| below 30 years of age | 320 | 193 | 513 | 292 | 180 | 472 | ||
| between 30 and 50 years of age | 613 | 483 | 1096 | 625 | 474 | 1099 | ||
| over 50 years of age | 239 | 220 | 459 | 270 | 234 | 504 | ||
| Employees engaged in support activities | 809 | 365 | 1,174 | 803 | 359 | 1,162 | ||
| below 30 years of age | 192 | 105 | 297 | 215 | 117 | 332 | ||
| between 30 and 50 years of age | 468 | 218 | 686 | 459 | 203 | 662 | ||
| over 50 years of age | 149 | 42 | 191 | 129 | 39 | 168 | ||
| Total | 1,981 | 1,261 | 3,242 | 1,990 | 1,247 | 3,237 |
| Employees (headcount) by level and gender |
unit | 2020 | 2019 | ||||
|---|---|---|---|---|---|---|---|
| Male | Female | Total | Male | Female | Total | ||
| Executives | No. | 26 | 2 | 28 | 32 | 0 | 32 |
| below 30 years of age | 0 | 0 | 0 | 0 | 0 | 0 | |
| between 30 and 50 years of age | 17 | 1 | 18 | 22 | 0 | 22 | |
| over 50 years of age | 9 | 1 | 10 | 10 | 0 | 10 | |
| Managers | 123 | 25 | 148 | 142 | 24 | 166 | |
| below 30 years of age | 5 | 1 | 6 | 6 | 3 | 9 | |
| between 30 and 50 years of age | 89 | 20 | 109 | 106 | 17 | 123 | |
| over 50 years of age | 29 | 4 | 33 | 30 | 4 | 34 | |
| White-collar | 687 | 336 | 1,023 | 721 | 345 | 1,066 | |
| below 30 years of age | 211 | 104 | 315 | 241 | 118 | 359 | |
| between 30 and 50 years of age | 376 | 199 | 575 | 380 | 192 | 572 | |
| over 50 years of age | 100 | 33 | 133 | 100 | 35 | 135 | |
| Blue-collar | 1,145 | 898 | 2,043 | 1,095 | 878 | 1,973 | |
| below 30 years of age | 292 | 191 | 483 | 260 | 176 | 436 | |
| between 30 and 50 years of age | 605 | 483 | 1,088 | 576 | 468 | 1,044 | |
| over 50 years of age | 248 | 224 | 472 | 259 | 234 | 493 | |
| Total | 1,981 | 1,261 | 3,242 | 1,990 | 1,247 | 3,237 |
Scope: Elica S.p.A., Elica Group Polska Sp.z o.o, Leonardo Services S.a. de C.V., Elica Inc., Zhejiang Elica Putian Electric Co. Ltd, Elica Trading LLC, Air Force S.p.A., Elica France S.A.S, Elica GmbH, Elica PB India Private Ltd
| Employees (headcount) | unit | 2020 | 2019 | ||||
|---|---|---|---|---|---|---|---|
| Male | Female | Total | Male | Female | Total | ||
| Permanent employees | No. | 1,746 | 1,084 | 2,830 | 1,717 | 1,087 | 2,804 |
| Italy | 732 | 462 | 1,194 | 762 | 464 | 1,226 | |
| France | 8 | 6 | 14 | 8 | 7 | 15 | |
| Germany | 9 | 5 | 14 | 8 | 5 | 13 | |
| Poland | 143 | 282 | 425 | 137 | 286 | 423 | |
| Russia | 11 | 17 | 28 | 10 | 20 | 30 | |
| The Americas | 441 | 254 | 695 | 400 | 231 | 631 | |
| India | 357 | 35 | 392 | 357 | 43 | 400 | |
| China | 45 | 23 | 68 | 35 | 31 | 66 | |
| Japan | 0 | 0 | 0 | 0 | 0 | 0 | |
| Total | 1,981 | 1,261 | 3,242 | 1,990 | 1,247 | 3,237 |
Source: Company payrolls
| Employees (headcount) | unit | 2020 | 2019 | ||||
|---|---|---|---|---|---|---|---|
| Male | Female | Total | Male | Female | Total | ||
| Full-time employees | No. | 1,980 | 1,231 | 3,211 | 1,988 | 1,212 | 3,200 |
| Part-time employees | 1 | 30 | 31 | 2 | 35 | 37 | |
| Total | 1,981 | 1,261 | 3,242 | 1,990 | 1,247 | 3,237 |
Scope: Elica S.p.A., Elica Group Polska Sp.z o.o, Leonardo Services S.a. de C.V., Elica Inc., Zhejiang Elica Putian Electric Co. Ltd, Elica Trading LLC, Air Force S.p.A., Elica PB India Private Ltd., Elica France S.A.S.
| Employees (headcount) | unit | 2020 | 2019 | ||||
|---|---|---|---|---|---|---|---|
| Male | Female | Total | Male | Female | Total | ||
| Temporary employees | No. | 235 | 177 | 412 | 273 | 160 | 433 |
| Italy | 8 | 8 | 16 | 8 | 13 | 21 | |
| France | 0 | 1 | 1 | 0 | 1 | 1 | |
| Germany | 0 | 1 | 1 | 0 | 1 | 1 | |
| Poland | 99 | 98 | 197 | 91 | 86 | 177 | |
| Russia | 0 | 0 | 0 | 0 | 0 | 0 | |
| The Americas | 53 | 25 | 78 | 58 | 22 | 80 | |
| India | 37 | 22 | 59 | 47 | 15 | 62 | |
| China | 38 | 22 | 60 | 69 | 22 | 91 | |
| Japan | 0 | 0 | 0 | 0 | 0 | 0 |
| New hires | unit | 2020 | 2019 | ||||
|---|---|---|---|---|---|---|---|
| Male | Female | Total | Male | Female | Total | ||
| Italy | No. | 16 | 11 | 27 | 23 | 19 | 42 |
| below 30 years of age | 7 | 6 | 13 | 10 | 11 | 21 | |
| between 30 and 50 years of age | 7 | 3 | 10 | 12 | 8 | 20 | |
| over 50 years of age | 2 | 2 | 4 | 1 | 0 | 1 | |
| France | 1 | 1 | 2 | 2 | 4 | 6 | |
| below 30 years of age | 0 | 1 | 1 | 0 | 0 | 0 | |
| between 30 and 50 years of age | 1 | 0 | 1 | 1 | 4 | 5 | |
| over 50 years of age | 0 | 0 | 0 | 1 | 0 | 1 | |
| Germany | 1 | 1 | 2 | 1 | 2 | 3 | |
| below 30 years of age | 0 | 0 | 0 | 0 1 |
1 | ||
| between 30 and 50 years of age | 0 | 1 | 1 | 0 | 1 | 1 | |
| over 50 years of age | 1 | 0 | 1 | 1 | 0 | 1 | |
| Poland | 111 | 111 | 222 | 97 | 88 | 185 | |
| below 30 years of age | 53 | 51 | 104 | 52 | 40 | 92 | |
| between 30 and 50 years of age | 49 | 42 | 91 | 41 | 40 | 81 | |
| over 50 years of age | 9 | 18 | 27 | 4 | 8 | 12 | |
| Russia | 1 | 1 | 2 | 0 | 1 | 1 | |
| below 30 years of age | 1 | 0 | 1 | 0 | 1 | 1 | |
| between 30 and 50 years of age | 0 | 1 | 1 | 0 | 0 | 0 | |
| over 50 years of age | 0 | 0 | 0 | 0 | 0 | 0 | |
| The Americas | 272 | 179 | 451 | 307 | 161 | 468 | |
| below 30 years of age | 197 | 133 | 330 | 191 | 121 | 312 | |
| between 30 and 50 years of age | 73 | 46 | 119 | 113 | 40 | 153 | |
| over 50 years of age | 2 | 0 | 2 | 3 | 0 | 3 | |
| India | 68 | 28 | 96 | 140 | 46 | 186 | |
| below 30 years of age | 23 | 17 | 40 | 96 | 34 | 130 | |
| between 30 and 50 years of age | 45 | 11 | 56 | 43 | 12 | 55 | |
| over 50 years of age | 0 | 0 | 0 | 1 | 0 | 1 | |
| China | 37 | 20 | 57 | 48 | 23 | 71 | |
| below 30 years of age | 10 | 5 | 15 | 17 | 7 | 24 | |
| between 30 and 50 years of age | 26 | 14 | 40 | 29 | 14 | 43 | |
| over 50 years of age | 1 | 1 | 2 | 2 | 2 | 4 | |
| Japan | 0 | 0 | 0 | 0 | 0 | 0 | |
| below 30 years of age | 0 | 0 | 0 | 0 | 0 | 0 | |
| between 30 and 50 years of age | 0 | 0 | 0 | 0 | 0 | 0 | |
| over 50 years of age | 0 | 0 | 0 | 0 | 0 | 0 | |
| Total | 507 | 352 | 859 | 618 | 344 | 962 | |
| below 30 years of age | 291 | 313 | 504 | 366 | 215 | 581 | |
| between 30 and 50 years of age | 201 | 118 | 319 | 239 | 119 | 358 | |
| over 50 years of age | 15 | 21 | 36 | 13 | 10 | 23 |
| unit | 2020 | 2019 | ||||
|---|---|---|---|---|---|---|
| Male | Female | Total | Male | Female | Total | |
| No, Italy |
46 | 18 | 64 | 40 | 21 | 61 |
| below 30 years of age | 2 | 4 | 6 | 6 | 2 | 8 |
| between 30 and 50 years of age | 23 | 5 | 28 | 19 | 8 | 27 |
| over 50 years of age | 21 | 9 | 30 | 15 | 11 | 26 |
| France | 1 | 2 | 3 | 0 | 1 | 1 |
| below 30 years of age | 0 | 0 | 0 | 0 | 0 | 0 |
| between 30 and 50 years of age | 1 | 2 | 3 | 0 | 1 | 1 |
| over 50 years of age | 0 | 0 | 0 | 0 | 0 | 0 |
| Germany | 0 | 1 | 1 | 1 | 2 | 3 |
| below 30 years of age | 0 | 0 | 0 | 0 | 0 | 0 |
| between 30 and 50 years of age | 0 | 1 | 1 | 1 | 2 | 3 |
| over 50 years of age | 0 | 0 | 0 | 0 | 0 | 0 |
| Poland | 99 | 101 | 200 | 97 | 108 | 205 |
| below 30 years of age | 38 | 36 | 74 | 40 | 37 | 77 |
| between 30 and 50 years of age | 49 | 42 | 91 | 45 | 52 | 97 |
| over 50 years of age | 12 | 23 | 35 | 12 | 19 | 31 |
| Russia | 0 | 4 | 4 | 0 | 3 | 3 |
| below 30 years of age | 0 | 1 | 1 | 0 | 1 | 1 |
| between 30 and 50 years of age | 0 | 3 | 3 | 0 | 2 | 2 |
| over 50 years of age | 0 | 0 | 0 | 0 | 0 | 0 |
| The Americas | 236 | 153 | 389 | 427 | 231 | 658 |
| below 30 years of age | 150 | 105 | 255 | 275 | 143 | 418 |
| between 30 and 50 years of age | 85 | 44 | 129 | 143 | 84 | 227 |
| over 50 years of age | 1 | 4 | 5 | 9 | 4 | 13 |
| India | 78 | 29 | 107 | 71 | 24 | 95 |
| below 30 years of age | 40 | 20 | 60 | 38 | 17 | 55 |
| between 30 and 50 years of age | 35 | 9 | 44 | 31 | 7 | 38 |
| over 50 years of age | 3 | 0 | 3 | 2 | 0 | 2 |
| China | 58 | 28 | 86 | 55 | 27 | 82 |
| below 30 years of age | 12 | 7 | 19 | 16 | 8 | 24 |
| between 30 and 50 years of age | 41 | 20 | 61 | 37 | 17 | 54 |
| over 50 years of age | 5 | 1 | 6 | 2 | 2 | 4 |
| Japan | 0 | 0 | 0 | 0 | 0 | 0 |
| below 30 years of age | 0 | 0 | 0 | 0 | 0 | 0 |
| between 30 and 50 years of age | 0 | 0 | 0 | 0 | 0 | 0 |
| over 50 years of age | 0 | 0 | 0 | 0 | 0 | 0 |
| Total | 518 | 336 | 854 | 691 | 417 | 1,108 |
| below 30 years of age | 242 | 173 | 415 | 375 | 208 | 583 |
| between 30 and 50 years of age | 234 | 126 | 360 | 276 | 173 | 449 |
| over 50 years of age | 42 | 37 | 79 | 40 | 36 | 76 |
| unit | 2020 | 2019 | ||||
|---|---|---|---|---|---|---|
| Male | Female | Total | Male | Female | Total | |
| % | 0.49% | 0.34% | 0.83% | 0.71% | 0.59% | 1.30% |
| 0.03% | 0.03% | 0.06% | 0.06% | 0.12% | 0.19% | |
| 0.03% | 0.03% | 0.06% | 0.03% | 0.06% | 0.09% | |
| 3.42% | 3.42% | 6.85% | 3.00% | 2.72% | 5.72% | |
| 0.03% | 0.03% | 0.06% | 0.00% | 0.03% | 0.03% | |
| 8.39% | 5.52% | 13.91% | 9.48% | 4.97% | 14.46% | |
| 2.10% | 0.86% | 2.96% | 4.32% | 1.42% | 5.75% | |
| 1.14% | 0.62% | 1.76% | 1.48% | 0.71% | 2.19% | |
| 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | |
| 15.64% | 10.86% | 26.50% | 19.09% | 10.63% | 29.72% | |
Scope: Elica S.p.A., Elicamex S.a.d. C.V, Elica Group Polska Sp.z o.o, Leonardo Services S.a. de C.V., Elica Inc., Zhejiang Elica Putian Electric Co. Ltd, Elica Trading LLC, Elica PB India Private Ltd., Elica France S.A.S.
| unit | 2020 | 2019 | ||||
|---|---|---|---|---|---|---|
| Male | Female | Total | Male | Female | Total | |
| % | 1.42% | 0.56% | 1.97% | 1.24% | 0.65% | 1.88% |
| 0.03% | 0.06% | 0.09% | 0.00% | 0.03% | 0.03% | |
| 0.00% | 0.03% | 0.03% | 0.03% | 0.06% | 0.09% | |
| 3.05% | 3.12% | 6.17% | 3.00% | 3.34% | 6.33% | |
| 0.00% | 0.12% | 0.12% | 0.00% | 0.09% | 0.09% | |
| 7.28% | 4.72% | 12.00% | 13.19% | 7.14% | 20.33% | |
| 2.41% | 0.89% | 3.30% | 2.19% | 0.74% | 2.93% | |
| 1.79% | 0.86% | 2.65% | 1.70% | 0.83% | 2.53% | |
| 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | |
| 15.98% | 10.36% | 26.34% | 21.35% | 12.88% | 34.23% | |
Scope: Elica S.p.A., Elicamex S.a.d. C.V, Elica Group Polska Sp.z o.o, Leonardo Services S.a. de C.V., Elica Inc., Zhejiang Elica Putian Electric Co. Ltd, Elica Trading LLC, Elica PB India Private Ltd., Elica France S.A.S.
| × ۹ $\sim$ |
× ł $\sim$ |
|---|---|
Elica Group is committed to full compliance with the laws and regulations of the countries in which it operates. In addition to the implementation of the Organization and Management Model (231 Model) and the Code of Con duct adopted by the entire group, relating to risks of corruption, money laundering, workplace discrimination, and so on, local companies undertake to comply with the following specific local laws:
~ The Mexican subsidiary is required to comply with the recently introdu ced NOM 035 legislation on the prevention of workplace psychological risks. Furthermore, the company has implemented the new economic and labour law requirements (Government - Economic Indicators).
~ The Polish subsidiary is required to comply with the local labour code (Kodeks Pracy), which envisages additional days off for the care of chil dren. In addition, the company is committed to compliance with legisla tion on employee remuneration and social contributions. The Polish com pany is periodically audited by the National Labour Inspectorate (PIP26).
In 2020, the number and amount of fines for non-compliance with econom ic and social legislation and regulations was negligible.
26 Państwowa Inspekcja Pracy
The Group's Code of Ethics - which must be complied with by all subsidiaries - sets out Elica's commitment to human rights in its business activities, specifically relating to fundamental human rights issues such as the non-exploitation of minors, the non-use of forced labour, harassment in the workplace etc. All company employees, as well as any other party carrying out business in its name of or on its behalf, regardless of the scope of their work, are bound by this code of ethics for these and for other issues.
Furthermore, certain contractual agreements with customers envisage Elica's adherence to principles contained in their Codes of Conduct and compatible with its own Code of Conduct. Consistent with these codes and internal policies, Elica had no instances of discrimination throughout the whole of 2020. Human Resources Management at Elica has always been compliant with employee diversity and equal opportunity guarantees, with a zero-tolerance policy on discrimination.
Concrete testament to this commitment are the accolades and accreditations both the Parent Group and the individual subsidiary companies have achieved over the years (e.g. "Top Employers" certification and the "Great Place to Work" Award). The Organization and Management Model (Model 231) envisages various methods for employees to report any episodes of discrimination. In addition, Group companies since 2019, and again in 2020, have launched local initiatives to support the fight against discrimination (e.g. In Poland: Anti-discrimination statement signed by Polish management, setting up of a hotline for reporting discriminatory acts, improvement regarding accessibility to consultation of the code of ethics).
Confirmation of Elica's commitment to non-discrimination is its personnel selection process that objectively assesses candidate skills without regard to strictly personal characteristics. An approach aimed at an objective assessment of a candidate's skills is particularly important in countries with potentially higher risks of discrimination. Indeed, a specific internal policy is implemented to regulate the entire recruiting process. Likewise, the same principles are applied in staff appraisal, reward and training processes.
and safety training. process.
"Upside Down Programme". business schools.
learning.
technical skills development.
itoring and periodic controls.
27 Human Resources
The company is committed to preventing inadequate technical and mandatory training from heightening the risk of accidents, culpable injuries and production slowdowns and stoppages.
All investments in managerial training are aimed at developing skills for the optimal coverage of roles and succession planning. In addition, the company invests in certain high potential resources, with dedicated personalised general management programs in collaboration with leading business schools.
In Elica, we want to develop a pleasant, stimulating environment that encourages employees to develop and learn new skills.
The Group's training and development plans aim to transmit satisfaction while stimulating employees not only to improve in what they do, but also to rise to new challenges.
Under the company's firm commitment to personnel development, training thus becomes an essential tool in motivating staff and making them feel valued and focused on the roles they play within the organization.
In Poland, a specific procedure regulates the training process, from budgetary planning through to the monitoring and evaluation of courses, with a special focus placed on the most critical positions within the organization. Furthermore, a standard induction course is given to all new recruits. Finally, particular attention is paid to language training.
Training hours and employees involved (excluding temporary workers)
| Training hours by gender and level | unit | 2020 | 2019 | ||||
|---|---|---|---|---|---|---|---|
| Male | Female | Total | Male | Female | Total | ||
| Executives | Hours | 203.0 | 9.0 | 212.0 | 303.0 | 0 | 303.0 |
| Managers | 1,419.5 | 489.3 | 1,908.8 | 2,845.5 | 1,060.0 | 3,905.5 | |
| White-collar | 8,467.0 | 3,521.5 | 11,988.5 | 13,533.5 | 6,450.3 | 19,983.8 | |
| Blue-collar | 13,368.5 | 8,440.5 | 21,809 | 11,283.1 | 7,995.8 | 19,278.8 | |
| Total | 23,458 | 12,460.3 | 35,918.3 | 27,965.1 | 15,506.1 | 43,471.1 | |
| Average training hours by gender and personnel category |
unit | 2020 | 2019 | ||||
| Male | Female | Total | Male | Female | Total | ||
| Average training hours provided to executives Hours | 7.8 | 4.5 | 7.6 | 9.5 | 0 | 9.5 | |
| Average training hours provided to managers | /No. | 11.4 | 20.4 | 12.9 | 20.0 | 44.2 | 23.5 |
| Average training hours provided to white-collar | 12.3 | 10.5 | 11.7 | 18.8 | 18.7 | 18.7 | |
| Training hours by gender and level | unit | 2020 | 2019 | ||||
|---|---|---|---|---|---|---|---|
| Male | Female | Total | Male | Female | Total | ||
| Executives | Hours | 203.0 | 9.0 | 212.0 | 303.0 | 0 | 303.0 |
| Managers | 1,419.5 | 489.3 | 1,908.8 | 2,845.5 | 1,060.0 | 3,905.5 | |
| White-collar | 8,467.0 | 3,521.5 | 11,988.5 | 13,533.5 | 6,450.3 | 19,983.8 | |
| Blue-collar | 13,368.5 | 8,440.5 | 21,809 | 11,283.1 | 7,995.8 | 19,278.8 | |
| Total | 23,458 | 12,460.3 | 35,918.3 | 27,965.1 | 15,506.1 | 43,471.1 | |
| Average training hours by gender and personnel category |
unit | 2020 | 2019 | ||||
| Male | Female | Total | Male | Female | Total | ||
| Average training hours provided to executives Hours | 7.8 | 4.5 | 7.6 | 9.5 | 0 | 9.5 | |
| Average training hours provided to managers | /No. | 11.4 | 20.4 | 12.9 | 20.0 | 44.2 | 23.5 |
| Average training hours provided to white-collar | 12.3 | 10.5 | 11.7 | 18.8 | 18.7 | 18.7 | |
| Average training hours provided to blue-collar | 11.7 | 9.4 | 10.7 | 10.3 | 9.1 | 9.8 |
Scope: Elica S.p.A., Elica Group Polska Sp.z o.o, Leonardo Services S.a. de C.V., Elica France S.A.S, Elica GmbH, Zhejiang Elica Putian Electric Co. Ltd, Elica Trading LLC, Air Force S.p.A. Elica PB India Private Ltd.
The Group, in accordance with its Quality, Environment and Safety Policy and its Code of Ethics, work on an ongoing basis to ensure that its employees, collaborators and the people who work for it have a fair, safe and non-discriminatory workplace. In this regard, it acts within the local and international regulatory framework for each of the Group's sites, based on the Universal Declaration of Human Rights and the conventions of the International Labour Organisation (ILO).
The Policy adopted by Elica to manage workplace health and safety aspects is summarised in a key principle: "SAFETY FIRST".
Working in safe and healthy places is a goal that must be pursued with the maximum commitment of all and that is achieved through the adoption of safe and correct behaviour in the performance of their work, but also by consistently creating the most appropriate conditions for this to happen.
This principle is also one of the pillars of Elica's "Quality, Environment and
Safety Policy".
To minimize risk factors and therefore the likelihood of accidents and occupational illnesses, a range of preventative programmes were introduced to make improvements in the workplace, through the active and systematic involvement of all employees.
In order to guarantee the highest standards of health and safety for its personnel, Elica has adopted a structured approach towards this objective, especially in the workplace, also in consideration of the challenges and specific issues deriving from the Company's geographical diversification. In compliance with local legislative requirements, in assessing risks Elica takes into consideration all the company processes introduced to its production plant, as well as the personnel and operators of contractors who have access to the
At all sites, risk assessments have been conducted in collaboration with the units identified within the company's security organization, engaging the worker safety representatives and the workers themselves through meetings
various sites and facilities. and interviews in the workplace.
These assessments are revised in conjunction with changes in production processes or in the organization of work of relevance to health and safety in the workplace in relation to the degree of evolution in technique, in prevention, or in protection, or following significant accidents, or when the results of health and safety monitoring point to such a need.
In any event, the risk assessment process and the risk assessment document are subject to analysis in conjunction with the annual meetings that are held at each site, during which the benefits of implementing current measures are assessed and areas of potential improvement are planned.
The significant risks inherent in production processes are mainly associated with manual processes in mechanical work and assembly, or concerning the operation or use of machine tools and transport equipment.
In order to limit significant risks, adequate technical, organizational and procedural measures are implemented, and an ongoing focus is placed on research and the proper provision, to all personnel involved, of the most effective personal protective equipment.
These events are collected through the filling out of special forms by all personnel appropriately involved, which during 2020 produced 8,298 reports.
COVID-19
28 The reference set consists solely of Elica S.p.A., Elica Group Polska, and Elicamex.
29 List of safety activities with progress monitoring according to the Deming Cycle ("Plan-Do-Check-Act"), with the assignment of timings and responsibilities.
All the events registered on the Heinrich Pyramid are analysed to identify the root cause of each event and to develop appropriate corrective and/or preventive actions that local Health & Safety teams must then implement at sites.
The presence at the corporate level of an EHS department provides a governance structure to overview and centrally coordinate28 health and safety aspects. This tool facilitates the constant monitoring of performance indices, such as the Frequency Index, Severity Index and Number of Accidents, at Monthly EHS Staff meetings, allowing improvement projects to be evaluated by using tools such as Kaizen Safety Journaling29.
One of the main results, obtained in 2020 for the Elica Group, was achievement of the certification in terms of the "ISO 45001-2018 occupational health and safety management system" in the Cooking Business Unit at the Italian plant of Mergo - Cerreto d'Esi - Fabriano Headquarters. It is an international standard in line with the ongoing globalization process and the latest management goals aimed at guaranteeing the well-being of personnel transversally across all levels of the company.
This process, which began in 2019 with the certification obtained at the first Elica site of the Castelfidardo Motors Business Unit, is intended to represent a fundamental step to provide a methodology and standards for managing risks related to the health and safety of workers. During 2020, 5 internal auditors have also been trained and qualified and will be a further essential support for the maintenance of the system with a view to continuous improvement. In 2021, the foundations will be laid for extending this system certification to overseas locations as well.
For Elica, the health and safety of workers is an absolute priority. For this reason, it has promptly introduced specific safety measures at its sites and workplaces to reduce contagion, with the intention of allowing workers to continue working in total safety. For these purposes, information has been prepared at various points to raise staff awareness of COVID-19 and specific protocols have been implemented for bio-risk assessment. All the measures adopted have been implemented by analysing the risk scenario identified by Elica, which has been shared with the local health structures and the internal medical service.
As part of the prevention of COVID-19, targeted screenings were performed to search for possible positives cases within the work areas. During 2020, 560 tests were carried out at various Group companies using a molecular nasopharyngeal swab.
In addition, a non-compulsory internal flu vaccination campaign was carried out using a quadrivalent vaccine administered to 330 employees at the Italian sites.
ACCIDENT INDICATORS Significant events in 2020 concerned hands and fingers getting cut or crushed. These accidents were caused by a lack of attention or the lack of adequate procedures for occasional, non-routine operations. The number of workplace accidents decreased from 12 to 11 (-8%), with a significant reduction (from 6 accidents to 1) at sites equipped with ISO 45001:2018 compliant Management Systems. This validates the strategy previously outlined to extend certifications in the near future also to non-Italian Group sites.
| unit | 2020 | 2019 | |||||||
|---|---|---|---|---|---|---|---|---|---|
| Male | Female | Total | Male | Female | Total | ||||
| Number of deaths | Elica S.p.A. ISO 45001 | No. | 0 | 0 | 0 | 0 | 0 | 0 | |
| Air Force | 0 | 0 | 0 | 0 | 0 | 0 | |||
| Mexico | 0 | 0 | 0 | 0 | 0 | 0 | |||
| Poland | 0 | 0 | 0 | 0 | 0 | 0 | |||
| China | 0 | 0 | 0 | 0 | 0 | 0 | |||
| India | ISO 45001 | 0 | 0 | 0 | 0 | 0 | 0 | ||
| Total | 0 | 0 | 0 | 0 | 0 | 0 | |||
| Number of workplace | Elica S.p.A. ISO 45001 | 1 | 0 | 1 | 0 | 0 | 0 | ||
| accidents with serious consequences ** |
Air Force | 0 | 0 | 0 | 0 | 0 | 0 | ||
| Mexico | 2 | 0 | 2 | 0 | 0 | 0 | |||
| Poland | 0 | 0 | 0 | 0 | 0 | 0 | |||
| China | 0 | 0 | 0 | 0 | 0 | 0 | |||
| India | ISO 45001 | 0 | 0 | 0 | 0 | 0 | 0 | ||
| Total | 3 | 0 | 3 | 0 | 0 | 0 | |||
| Number of recordable | Elica S.p.A. ISO 45001 | 1 | 0 | 1 | 4 | 2 | 6 | ||
| workplace injuries | Air Force | 2 | 0 | 2 | 1 | 0 | 1 | ||
| Mexico | 4 | 2 | 6 | 3 | 1 | 4 | |||
| Poland | 1 | 1 | 2 | 0 | 0 | 0 | |||
| China | 0 | 0 | 0 | 1 | 0 | 1 | |||
| India | ISO 45001 | 0 | 0 | 0 | 0 | 0 | 0 | ||
| Total | 8 | 3 | 11 | 9 | 3 | 12 | |||
| "On-commute" | Elica S.p.A. ISO 45001 | 0 | 0 | 0 | na | na | na | ||
| injuries*** | Air Force | 0 | 0 | 0 | na | na | na | ||
| Mexico | 5 | 4 | 9 | na | na | na | |||
| Poland | 1 | 2 | 3 | na | na | na | |||
| China | 0 | 0 | 0 | na | na | na | |||
| India | ISO 45001 | 0 | 0 | 0 | na | na | na | ||
| Total | 6 | 6 | 12 | na | na | na | |||
| Total number | Elica S.p.A. ISO 45001 | 1 | 0 | 1 | 4 | 2 | 6 | ||
| of accidents | Air Force | 2 | 0 | 2 | 1 | 0 | 1 | ||
| Mexico | 9 | 6 | 15 | 3 | 1 | 4 | |||
| Poland | 2 | 3 | 5 | 0 | 0 | 0 | |||
| China | 0 | 0 | 0 | 1 | 0 | 1 | |||
| India | ISO 45001 | 0 | 0 | 0 | 0 | 0 | 0 | ||
| Total | 14 | 9 | 23 | 9 | 3 | 12 | |||
| Hours worked | Elica S.p.A. ISO 45001 | 985,172 | 553,746 | 1,538,918 | 1,120,779 | 606,416 | 1,727,195 | ||
| Air Force | 91,383 | 61,965 | 153,348 | 104,900 | 70,438 | 175,338 | |||
| Mexico | 1,033,024 | 382,077 | 1,415,101 | 856,326 | 856,326 | 1,712,652 | |||
| Poland | 639,881 | 920,804 1,560,685 | 626,499 | 962,858 1,589,357 | |||||
| China | 140,088 | 68,800 | 208,888 | 152,921 | 76,460 | 229,381 | |||
| India | ISO 45001 | 1,005,784 | 116,021 | 1,121,805 | 805,056 | 92,380 | 897,436 | ||
| Total | 3,895,332 2,103,413 5,998,745 3,666,481 2,664,878 6,331,359 |
| 2020 | 2019 | |||||||
|---|---|---|---|---|---|---|---|---|
| Male | Female | Total | Male | Female | Total | |||
| Death rate | Elica S.p.A. ISO 45001 | - | - | - | - | - | - | |
| Air Force | - | - | - | - | - | - | ||
| Mexico | - | - | - | - | - | - | ||
| Poland | - | - | - | - | - | - | ||
| China | - | - | - | - | - | - | ||
| India | ISO 45001 | - | - | - | - | - | - | |
| Total | - | - | - | - | - | - | ||
| Rate of workplace accidents | Elica S.p.A. ISO 45001 | 1.015 | - | 0.650 | - | - | - | |
| with serious consequences | Air Force | - | - | - | - | - | - | |
| Mexico | 1.936 | - | 1.413 | - | - | - | ||
| Poland | - | - | - | - | - | - | ||
| China | - | - | - | - | - | - | ||
| India | ISO 45001 | - | - | - | - | - | - | |
| Total | 0.770 | - | 0.500 | - | - | - | ||
| Rate of recordable | Elica S.p.A. ISO 45001 | 1.015 | - | 0.650 | 3.569 | 3.297 | 3.474 | |
| workplace injury | Air Force | 21.886 | - | 13.042 | 9.533 | - | 5.703 | |
| Mexico | 3.872 | 5.235 | 4.240 | 3.503 | 1.168 | 2.336 | ||
| Poland | 1.563 | 1.086 | 1.281 | - | - | - | ||
| China | - | - | - | 6.539 | - | 4.360 | ||
| India | ISO 45001 | - | - | - | - | - | - | |
| Total | 2.054 | 1.426 | 1.834 | 2.455 | 1.126 | 1.895 | ||
| Total workplace | Elica S.p.A. ISO 45001 | 1.015 | - | 0.650 | 3.569 | 3.298 | 3.474 | |
| accident rate | Air Force | 21.886 | - | 13.042 | 9.533 | - | 5.703 | |
| Mexico | 8.712 | 15.704 | 10.600 | 3.503 | 1.168 | 2.336 | ||
| Poland | 3.126 | 3.258 | 3.204 | - | - | - | ||
| China | - | - | - | 6.539 | - | 4.360 | ||
| India | ISO 45001 | - | - | - | - | - | - | |
| Total | 3.594 | 4.279 | 3.834 | 2.455 | 1.126 | 1.895 |
*The calculations of the accident indicators shown in the tables are based solely on accidents involving employees. Scope: Countries with production sites: Elica, Elicamex, Elica Group Polska, Putian, Air Force, Elica India
In the 2019 Non-Financial Report, accident figures were reported in accordance with GRI 403-2 Occupational Health and Safety 2016 ** Workplace accident with serious consequences= A workplace accident that results in death or an injury from which the worker cannot recover, does not recover, or is not realistically expected to recover fully by returning to pre-accident health within 6 months. *** "On-commute" accidents refer to Elicamex and Elica Group Polska, where transportation is arranged by the company. **** Rates of death, accidents with serious consequences, and recordable accidents are calculated as: number of events/hours worked*1,000,000 The tables present the facilities with a certified Management System in accordance with the UNI EN ISO 45001:2018 standard
| ear misses recorded | ||
|---|---|---|
| ۱I۷ | ||
| dand |
| Near misses recorded 2020 |
2019 |
|---|---|
| Italy 143 |
na |
| Poland 18 |
na |
| Mexico 15 |
na |
| China - |
na |
| India - |
na |
| Total 176 |
na |
Scope: Countries with production sites: Elica, Elicamex, Elica Group Polska, Putian, Air Force, Elica India
Industrial and trade union relations are coordinated centrally but managed locally and conducted according to applicable legislation and existing frameworks in the individual countries. The issues that may arise depend on specific challenges that emerge from time to time in the different countries. The main themes dealt with in collaboration with the trade unions include:
~ The signing on April 21, 2020 of a "safety protocol for the management of health emergencies at Elica Group sites in Italy", which implemented the measures required by the national Prime Ministerial decrees on health and safety to combat SARS-CoV-2. The prevention measures contained in this protocol, as well as the further specific procedures issued by the company in this regard, are marked by the fact that - in addition to the minimum level of prevention established by law - they introduce the adoption of additional solutions, with the goal of further raising the safety levels of employees. With particular reference to Italy, the safety committees set up in the plant continued to meet throughout 2020, with the task of monitoring the correct implementation of the content of the protocol and supple-
~ The above measures, initially introduced in Italy, have been extended to the entire Group, both at an industrial and administrative level;
~ Moreover, specific agreements were reached with the trade unions to ensure the sharing of the best tools available, for the management of person-
Performance indicators Collective bargaining agreements
| Employees covered by collective bargaining agreements | unit | 2020 | 2019 |
|---|---|---|---|
| Employees covered by collective bargaining agreements | No. | 2,048 | 2,042 |
| Total employees | 3,242 | 3,237 | |
| Percentage | % | 63% | 63% |
Scope: Elica S.p.A., Elicamex S.a.d. C.V, Elica Group Polska Sp.z o.o, Leonardo Services S.a. de C.V., Elica Inc., Zhejiang Elica Putian Electric Co. Ltd, Elica Trading LLC, Elica PB India Private Ltd., Elica France S.A.S
All Group companies with production sites (except Air Force) implement management systems certified to standard ISO 9001:201530.
In the case of finished products (hoods, ranges, fragrance dispensers and home air quality monitoring systems), Elica's policy is essentially to bring to market products that are fully compliant with all applicable local and international legislation.
Each year the Group certifies all new products brought to market and re-certifies all products that have seen changes in materials and/or components to ensure that they comply with health and safety standards and with all Regulations, Directives and Rules applicable in the countries of sale.
At all of the Group's production sites, both finished products and motors are 100% tested in terms of safety and functionality with the use of suitable testing stations.
For more than ten years there has been extensive collaboration with UL31, a US organization that certifies products for safety and electromagnetic compatibility and a global leader in the appliance certification for the EU, US and Canadian markets.
Elica constantly focuses on product safety, certification and innovation, particularly through the activities of its EPL Laboratory, which is internationally certified32 for the testing of safety, electromagnetic compatibility, energy consumption, performance, acoustics and the reliability of finished products, in addition to materials and components.
It has been certified CTF Stage 333 by UL for the issuance of CB34 and DEMKO35 certificates, CTDP36 by UL for the issuance of UL and cULus37 certificates, WMT38 by CQC39 for the issuance of the CCC mark and Chinese Energy Label (the only laboratory in the world outside of China). The Laboratory is also certified by Accredia40 and is therefore part of the mutually recognised internationally ILAC-MRA test laboratories for Safety, Performance and Electromagnetic and Acoustics Compatibility of finished products and Components certification (issued by the Italian Government and recognised worldwide).
This policy also covers the finished products of the Chinese and Indian subsidiaries sold within the European Union.
Elica has begun to develop a new process of testing finished products that, by involving employees with roles external to production, aims to simulate customer experience. The objective of this process is to reveal eventual defects or malfunctioning prior to market release and reduce the rate of latent defects, above all in terms of safety, but also in terms of reliability of products over time.
The Elica Propulsion Laboratory's Mission
Based on the standard procedures used to design its platforms and study product manufacturing feasibility, the Group also conducts analyses of re-
30 International standard indicating requirement for an effective quality management system.
31 UL is the certification body, or National Competent Body, for the USA. For further details, refer to the website www.ul.com or www.italy.ul.com.
32 UNI EN ISO/IEC 17025 Certificate by Accredia (www.accredia.it), certified CTFst3 and CTDP compliant by UL International and certified WMT compliant by CQC.
33 The Customer Testing Facilities (CTF) programme was established by the Institute of Electrical and Electronics Engineers to enable use of the manufacturer's in-house laboratory for testing and CB certification purposes (see note 39). CTF Stage 3 level is the highest level possible for a company laboratory, accepted by all states worldwide (in accordance with European and IEC standards).
34 CB is the certificate issued by UL as evidence of the Safety of products in conformity with European IEC standards, valid in all non-European countries, except the USA and Canada.
35 DEMKO is the certificate and marking issued by UL as evidence of the safety of products in conformity with European standards (EN).
36 UL's Customer Test Data Program is the equivalent of CTF Stage 3, but for the markets of the USA & Canada (therefore in accordance with UL standards).
37 The cULus certificate is issued by UL as evidence of the Safety of products in conformity with US standards (established by UL) extended to Canadian standards, for the markets of the USA and Canada.
38 WMT is the Witness Manufacturer Testing Programme of CQC (see note 44), the highest level of accreditation granted by CQC to laboratories not under their direct control, of which EPL is currently the only one located outside of China.
39 CQC is the certification body, or National Competent Body, for China. For further information, please see www.cqc.com.cn/www/english (http://www.cqc.com.cn/www/english).
40 ILAC-MRA Accredia accreditation, the Italian Accreditation Body is the only national organisation authorised by the State to carry out accreditation activities. Accredia is the only National accreditation body authorised by the Italian government to certify that certification and inspection bodies, as well as testing, calibration and food safety laboratories, have the necessary expertise to adequately evaluate the conformity of products, processes and systems to reference standards. International agreements attest to the validity and credibility of accreditation as an effective tool in the qualification of Conformity Assessment Operators for European and global marketplaces, ensuring recognition of the equivalence of accreditation activities carried out under all signatory members within the accreditation system administered by IAF-ILAC internationally and by EA at the regional (European) level.
Percentage of categories of products and services for which health and safety impacts on consumers are assessed (e.g., product testing).
| Products/Services | unit | 2020 | 2019 |
|---|---|---|---|
| Products analysed for risks relating to consumer health and safety | No. | 3,458 | 2,771 |
| Products in portfolio (number of SKUs) | 9,342 | 8,771 | |
| Products previously analysed for risks relating to health and safety (before the reporting year) |
5,884 | 6,000 | |
| Percent of products analysed for health and safety risk during the year | % | 37% | 32% |
| Percent of products analysed for health and safety (total) | 100% | 100% |
Scope: Elica S.p.A., Elicamex, Elica Group Polska Sp.z o.o, Air Force S.p.A., Zhejiang Elica Putian Electric Co. Ltd, Elica PB India Private Ltd., Ariafina Co. Ltd.
Episodes of non-compliance relating to the impacts on health and safety of products and services
| Non-Conformity | unit | 2020 | 2019 |
|---|---|---|---|
| Incidents of non-compliance concerning the health and safety impacts of products and services |
No. | 4 | 4 |
| Cases of non-compliance with the self-governance codes | - | N/A | |
| Total | 4 | 4 |
Scope: Elica S.p.A., Elica Group Polska Sp.z o.o., Elicamex S.a.d. C.V, Elica Inc., Zhejiang Elica Putian Electric Co.Ltd, Elica Trading LLC, Air Force S.p.A., Elica France S.A.S, Elica GmbH, Elica PB India Private Ltd,Ariafina
sidual product risks with the aid of EPL and external certification bodies (e.g. UL, VDE etc). On the basis of the findings, the potential residual risks are:
Some of them may be associated with possible risks of fire or electro-
magnetic disturbances. to be counted.
As a result of the aforementioned monitoring and certification system, the number of episodes of non-conformity is modest in extent. If loss claims filed with insurers are taken as the basis for evaluation, in 2020 4 cases are
For finished products in the cooking area (range hoods and induction ranges) and for kitchen hoods, the Elica Group provides consumers with a set of information aimed at protecting their main rights (health, safety, quality of products and services and adequate information). This information is provid ed in the form of labels affixed directly to the product or packaging and doc umentation accompanying the product, enabling safe use of the products and services and providing information about the contents and, in particular, about the substances that could generate a social impact, how to dispose of the product and the related environmental and social impacts and the prod uct's energy consumption (Energy Label, Product Sheet and Ecodesign). The origins of product components are not disclosed to consumers but is available from the company as it is included in specific certifications (appen dix 1 to the CB test report on Safety certification).
Product managers determine the documents and labels that are to accom pany products. The company's Windchill PDM Link system is used to begin the process of designing the documentation and labelling.
In the cases of Elica SpA, Elica Group Polska Sp.z o.o, Elica Gmbh, Elica Trading LLC and Elica France S.A.S., all documentation (e.g., installation, use and maintenance manuals) and labels affixed to products and packaging are prepared by the technical services and EPL (e.g.: Energy Label).
All products are validated by the EPL laboratory. They are also certified by a third-party organization, even when marketed solely in the EU, where the EC self-certification would be sufficient. This procedure also applies to the fin ished products of the Chinese subsidiary sold within the European Union.
In the case of Elicamex S.a.d. C.V, the accredited local internal laboratory validates and provides the documentation for the client, in concert with local certification, with support and coordination from EPL Italy.
In the case of Zhejiang Elica Putian Electric Co. Ltd, products intended for the Chinese market and for the markets of South-East Asia are CCC certified
by external laboratories.
In the case of Elica PB India Private Ltd. and Ariafina Co. Ltd, product doc umentation and labels comply with local legislation.
The Fime - Elica Motors unit operates according to a business-to-business model, meaning that the products it supplies are assembled by its clients into their products (such as boilers, water heaters, ovens, refrigerators and cook ing hoods) to then in turn be brought to market for end consumers.
Accordingly, the unit designs, sells and produces based on the information requested by the client on the agreed technical specifications and, where ap plicable, the contract signed. This information may be included in the product label or provided in separate technical documentation: designs, certificates of approval by third parties relating to product safety, preferred origin of the product, quality specifications, logistical specifications and/or specifications of another kind.
On the basis of the agreed specifications for each order, the set of direct or indirect information required for the project is entered into the Windchill PDMLink management system and the Product Development Procedure is applied to ensure that the information is verified and available.
COOKING DIVISION
MOTORS DIVISION
Product and service information and labelling requirements
| Item | Description | Cooking | Motors |
|---|---|---|---|
| Requirements for company disclosure and product labelling and services policies |
Origin of components | Yes | Yes |
| Content, and in particular substances that could generate an environmental or social impact |
Yes | Yes | |
| Safe use of products and services | Yes | Yes | |
| Product disposal methods and the related environmental and social impacts Yes | Yes | ||
| Energy label; Product Sheet and Ecodesign | Yes | No |
| Region | Failure rate | unit | 2020 | 2019 |
|---|---|---|---|---|
| Finished products* | Percentage of significant categories of products and services covered and assessed for compliance with the above procedures** |
% | 62.3% | 61.5% |
| Electric motors | Percentage of significant categories of products and services covered and assessed for compliance with the above procedures |
% | 100% | 100% |
(*) Scope of finished products: Elica brand hoods, range hoods and induction ranges. It is assumed that what applies to these product categories for the Elica brand may be extended to all Elica Group induction ranges, range hoods and cooking hoods marketed by: Elica Spa, Elica Group Polska Sp.z o.o, Elica Gmbh, Elica Trading LLC, Elica France S.A.S. The analysis also applies to the finished products of the Chinese subsidiary sold in the European Union (both own brands and third-party brands). The "Fragrance diffuser" product type is not included in the indicator, because it is subject solely to safety and not to energy label and eco-design.
(**)The ratio of the net sales generated by the finished products analysed (see the field "(*) Scope of finished products") and the Elica Group's net sales for the following categories of finished products: hoods, range hoods and induction ranges).
The Project Manager is then responsible for initiating the preparation of the documents and labels of a technical nature that are to be provided with the product and for monitoring and coordinating project progress until each project is concluded.
Regarding privacy, consumer-related risks are currently relatively contained. The most significant residual risks relate to computer hacking and other fraudulent and illegal activities carried out via the web and aimed at stealing personal data.
Elica, in compliance with applicable legislation, and, in particular, with EU Regulation 679/2016 ("GDPR") and Legislative Decree 101/2018, is completing an alignment project involving subsidiaries with sites within the European Union. In particular, Elica has adopted specific group policies to:
~ Dictate general principles for the protection of personal data (the "General
~ Describe all technical, digital and IT measures adopted by the Data Controller for the protection of personal data ("Security Measures for the Pro-
~ Regulate employee use of company devices such as personal computers, tablets, mobile phones, etc. ("Use of IT Tools");
~ Regulate the procedure to be applied in all ordinary activities and special projects to guarantee observance of the fundamental principles for the protection of personal data ("Privacy by Default and by Design").
Elica S.p.A. and its subsidiaries with sites within the European Union also imple-
ment procedures to:
~ Regulate the management of requests to exercise the data subjects rights referred to in Article 15 et seq. of the EU Regulation ("Data Access");
~ Establish rules, times, activities and roles for managing data breaches
The activities within the subsidiaries are supported by local specialist consultants, and, in the case of Elica SpA and Elica GmbH, by a dedicated Data
Privacy Officer.
In addition, a new training session has been re-proposed to the users, highlighting the aspects related to the national standard implementing the GDPR, with a focus on the changes introduced compared to the old Privacy Code (Legislative Decree 196/2003) by Legislative Decree 101/2018, as well as a training session on cyber security awareness, on the Mimecast platform41.
Specialist training was also provided in both Elica SpA and Air Force. Training will also be carried out in the subsidiaries to ensure constant alignment. All other Group companies, though unaffected by the European legislation, are, in any case, required to compliance with the principles concerning privacy contained in the Group's Code of Conduct and applicable local legislation.
Due in part to the actions taken and safeguards put into place, the Group did not identify any data breaches in 2020. In particular, no complaints were received for actual or potential personal data violations in relation to questions, requests, disputes initiated by third parties or non-disclosures by the company. A new Privacy Assessment conducted by a Company specialising in privacy and cybersecurity was initiated in the final months of 2020.
41 An international company specialising in cloud-based email management for Microsoft
Exchange and Microsoft Office 365
| GRI Standard | Disclosure | Paragraph at page Omissions | |
|---|---|---|---|
| General Disclosures | |||
| GRI 102: | Name of the organization | 102-1 | 17 |
| General Disclosures 2016 | Activities, brands, products, and services | 102-2 | 17 |
| Location of headquarters | 102-3 | 17 | |
| Location of operations | 102-4 | 19 | |
| Ownership and legal form | 102-5 | 37 | |
| Markets served | 102-6 | 22 | |
| Scale of the organization | 102-7 | 17 | |
| Information on employees and other workers | 102-8 | 21 | |
| Supply chain | 102-9 | 34 | |
| External initiatives | 102-12 | 33 | |
| Membership of associations | 102-13 | 26 | |
| Statement from senior decision-maker | 102-14 | 9 | |
| Key impacts, risks, and opportunities | 102-15 | 44-45 | |
| Values, principles, standards, and norms of behavior | 102-16 | 15 | |
| Governance structure | 102-18 | 36 | |
| Composition of the highest governance body and its com mittees |
102-22 | 39 | |
| Nominating and selecting the highest governance body | 102-24 | 39 | |
| Conflicts of interest | 102-25 | 44 | |
| Role of highest governance body in setting purpose, values, and strategy |
102-26 | 41 | |
| Evaluating the highest governance body's performance | 102-28 | 39 | |
| Effectiveness of risk management processes | 102-30 | 44 | |
| Highest governance body's role in sustainability reporting | 102-32 | 39 | |
| Remuneration policies | 102-35 | 40 | |
| Process for determining remuneration | 102-36 | 40 | |
| Annual total compensation ratio | 102-38 | 41 | |
| List of stakeholder groups | 102-40 | 51 | |
| Collective bargaining agreements | 102-41 | 117 | |
| Identifying and selecting stakeholders | 102-42 | 51 | |
| Entities included in the consolidated financial statements | 102-45 | 11 | |
| Defining report content and topic Boundaries | 102-46 | 57 | |
| List of material topics | 102-47 | 59 | |
| Changes in reporting | 102-49 | 60 | |
| Reporting period | 102-50 | 10 | |
| Date of most recent report | 102-51 | 10 | |
| Reporting cycle | 102-52 | 10-57 | |
| Contact point for questions regarding the report | 102-53 | 11 | |
| Claims of reporting in accordance with the GRI Standards | 102-54 | 10 | |
| GRI content index | 102-55 | 124 |
| GRI Standard | Disclosure | Paragraph at page Omissions | ||
|---|---|---|---|---|
| Economic Performance | ||||
| GRI 201 | The management approach and its components | 103-2 | 60 | |
| Economic Performance | Key impacts, risks, and opportunities | 102-15 | 60 | |
| 2016 | Direct economic value generated and distributed | 201-4 | 60 | |
| Procurement practices | ||||
| GRI 204 | The management approach and its components | 103-2 | 73 | |
| Procurement practices 2016 |
Key impacts, risks, and opportunities | 102-15 | 73 | |
| Proportion of spending on local suppliers | 204-1 | 73 | ||
| Anti-corruption | ||||
| GRI 205 | The management approach and its components | 103-2 | 75 | |
| Anti-corruption 2016 | Key impacts, risks, and opportunities | 102-15 | 75 | |
| Operations assessed for risks related to corruption | 205-1 | 77 | ||
| Communication and training about anti-corruption policies and procedures |
205-2 | 77 | ||
| Confirmed incidents of corruption and actions taken | 205-3 | 77 | ||
| Anti-competitive Behavior |
||||
| GRI 206 | The management approach and its components | 103-2 | 79 | |
| Anti-competitive Behavior 2016 |
Key impacts, risks, and opportunities | 102-15 | 79 | |
| Legal actions for anti-competitive behavior, anti-trust, and monopoly practices |
206-1 | 79 | ||
| Tax | ||||
| GRI 207 | The management approach and its components | 103-2 | 67 | |
| Tax 2019 | Key impacts, risks, and opportunities | 102-15 | 67 | |
| Country by country reporting | 207-4 | 67 | ||
| Energy | ||||
| GRI 302 | The management approach and its components | 103-2 | 89 | |
| Energy 2016 | Key impacts, risks, and opportunities | 102-15 | 89 | |
| Energy consumption within the organization | 302-1 | 90 | ||
| Energy consumption outside of the organization | 302-2 | 91 | ||
| Emissions | ||||
| GRI 305 | The management approach and its components | 103-2 | 89 | |
| Emissions 2016 | Key impacts, risks, and opportunities | 102-15 | 89 | |
| Direct (Scope 1) GHG emissions | 305-1 | 91 | ||
| Energy indirect (Scope 2) GHG emissions | 305-2 | 91 | ||
| Other indirect (Scope 3) GHG emissions | 305-3 | 92 | ||
| Effluents and Waste | ||||
| GRI 306 | The management approach and its components | 103-2 | 93 | |
| Effluents and Waste 2016 | Key impacts, risks, and opportunities | 102-15 | 93 | |
| Waste by type and disposal method | 306-2 | 93 | ||
| Environmental Compliance |
||||
| GRI 307 | The management approach and its components | 103-2 | 83 | |
| Environmental Compliance 2016 |
Key impacts, risks, and opportunities | 102-15 | 83 | |
| Non-compliance with environmental laws and regulations | 307-1 | 83 |
| GRI Standard | Disclosure | Paragraph at page Omissions | ||
|---|---|---|---|---|
| Supplier environmental assessment |
||||
| GRI 308 Supplier environmental assessment 2016 |
The management approach and its components | 103-2 | 60 | |
| Key impacts, risks, and opportunities | 102-15 | 60 | ||
| New suppliers that were screened using environmental criteria 308-1 | 60 | |||
| Employment | ||||
| GRI 401 Employment 2016 |
The management approach and its components | 103-2 | 97 | |
| Key impacts, risks, and opportunities | 102-15 | 97 | ||
| New employee hires and employee turnover | 401-1 | 101 | ||
| Occupational Health and Safety |
||||
| GRI 403 Occupational Health and Safety 2018 |
The management approach and its components | 103-2 | 111 | |
| Key impacts, risks, and opportunities | 102-15 | 111 | ||
| Types of injury and rates of injury, occupational diseases, lost days, and absenteeism, and number of work-related fatalities |
403-9 | 114 | ||
| Training and Education | ||||
| GRI 404 | The management approach and its components | 103-2 | 107 | |
| Training and Education 2016 |
Key impacts, risks, and opportunities | 102-15 | 107 | |
| Average hours of training per year per employee | 404-1 | 109 | ||
| Diversity and Equal Opportunity |
||||
| GRI 405 | The management approach and its components | 103-2 | 97-106 | |
| Diversity and Equal Opportunity 2016 |
Key impacts, risks, and opportunities | 102-15 | 97-106 | |
| Diversity of governance bodies and employees | 405-1 | 39-97-99 | ||
| Non-discrimination | ||||
| GRI 406 | The management approach and its components | 103-2 | 97-106 | |
| Non-discrimination 2016 | Key impacts, risks, and opportunities | 102-15 | 97-106 | |
| Incidents of discrimination and corrective actions taken | 406-1 | 106 | ||
| Supplier Social Assessment | ||||
| GRI 414 Supplier Social Assessment 2016 |
The management approach and its components | 103-2 | 60 | |
| Key impacts, risks, and opportunities | 102-15 | 60 | ||
| New suppliers that were screened using social criteria | 414-1 | 60 | ||
| Consumer Health and Safety |
||||
| GRI 416 Customer Health and Safety 2016 |
The management approach and its components | 103-2 | 118 | |
| Key impacts, risks, and opportunities | 102-15 | 118 | ||
| Assessment of the health and safety impacts of product and service categories |
416-1 | 119 | ||
| Incidents of non-compliance concerning the health and safety impacts of products and services |
416-2 | 119 | ||
| Marketing and Labeling | ||||
| GRI 417 Marketing and Labeling 2016 |
The management approach and its components | 103-2 | 121 | |
| Key impacts, risks, and opportunities | 102-15 | 121 | ||
| Requirements for product and service information and labeling |
417-1 | 122 |
| GRI Standard | Disclosure | Paragraph at page Omissions | |
|---|---|---|---|
| Consumer Privacy | |||
| GRI 418 Customer Privacy 2016 |
The management approach and its components | 103-2 | 123 |
| Key impacts, risks, and opportunities | 102-15 | 123 | |
| Substantiated complaints concerning breaches of customer privacy and losses of customer data |
418-1 | 123 | |
| Socioeconomic compliance |
|||
| GRI 419 Socioeconomic compliance 2016 |
The management approach and its components | 103-2 | 105 |
| Key impacts, risks, and opportunities | 102-15 | 105 | |
| Non-compliance with laws and regulations in the social and economic area |
419-1 | 105 | |
| Economic and financial performance of the Group |
|||
| NO GRI | The management approach and its components | 103-2 | 65 |
| Key impacts, risks, and opportunities | 102-15 | 65 | |
| Financial Highlight of the Group | n.a. | 64 | |
| Product design (eco-friendly) |
|||
| NO GRI | The management approach and its components | 103-2 | 85 |
| Key impacts, risks, and opportunities | 102-15 | 85 | |
| Packaging reengineering projects concluded | n.a. | 86 | |
| Reduction in annual indirect C02 equivalent amounts | n.a. | 86 | |
| Innovation | |||
| NO GRI | The management approach and its components | 103-2 | 69 |
| Key impacts, risks, and opportunities | 102-15 | 69 | |
| Patents | n.a. | 70 | |
| Innovation flow effective implementation index | n.a. | 70 | |
| After Sales Service | |||
| NO GRI | The management approach and its components | 103-2 | 71 |
| Key impacts, risks, and opportunities | 102-15 | 71 | |
| Service Level: Days between 1st customer call and closure of the action |
n.a. | 72 | |
| Speed of Service: Days between 1st customer call and date of 1st appointment with the customer |
n.a. | 72 | |
| Right First Time: % of actions closed on 1st appointment | n.a. | 72 |
FOR MANY YEARS, ELICA HAS BELIEVED IN THE VALUE OF RELATIONSHIPS FORMED IN THE WORKPLACE. IN A WORLD SO FULL OF LIMITATIONS, THE IDEA OF COLLABORATION HAS BECOME A FUNDAMENTAL VALUE, ABOVE ALL FOR THOSE WHO, LIKE US, HAVE ALWAYS SOUGHT TO PROMOTE IT.
RESPONSIBILITIES OF THE DIRECTORS AND BOARD OF STATUTORY AUDITORS ("COLLEGIO SINDACALE")
OF ELICA S.P.A. (THE "PARENT")
FOR THE NFS
The directors are responsible far the preparation of an NFS in accordance with articles 3 and 4 of the decree and [the "Global Reporting lnitiative Sustainability Reporting Standards" issued by GRI - Global Reporting lnitiative (the "GRI Standards") which they have identified as the reporting standards. The directors are also responsible, within the terms established by the ltalian law, far such internal control as they determine is necessary to enable the preparation of an NFS that is free from materiai misstatement, whether due to
fraud or error.
Moreover, the directors are responsible for the identification of the content of the NFS, considering the aspects indicated in article 3.1 of the decree and the group's business and characteristics, to the extent necessary to enable an understanding of the group's business, performance, results and the impacts it generates.
The directors' responsibility also includes the design of an internal model for the management and organisation of the group's activities, as well as, with reference to the aspects identified and disclosed in the NFS, the group's policies and the identification and management of the risks generated or borne. The Collegio Sindacale is responsible for overseeing, within the terms established by the ltalian law, compliance with the decree's provisions.
We are independent in compliance with the independence and all other ethical requirements of the lnternational Code of Ethics for Professional Accountants (including lnternational lndependence Standards, the IESBA Code) issued by the lnternational Ethics Standards Board far Accountants, which is founded on fundamental principles of integrity, objectivity, professional competence and due care, confidentiality and professional behaviour. Our company applies lnternational Standard on Quality Control 1 (ISQC Italia 1) and, accordingly, maintains a system of quality contrai including documented policies and procedures regarding compliance with ethical requirements, professional standards and applicable legal and regulatory requirements.
Our responsibility is to express a conclusion, based on the procedures performed, about the compliance of the NFS with the requirements of the decree and the GRI Standards. We carried out our work in accordance with the criteria established by "lnternational Standard on Assurance Engagements 3000 (revised) - Assurance Engagements other than Audits or Reviews of Historical Financial lnformation" ("ISAE 3000 revised"), issued by the lnternational Auditing and Assurance Standards Board applicable to limited assurance engagements. This standard requires that we plan and perform the engagement to obtain limited assurance about whether the NFS is free from materiai misstatement. A limited assurance engagement is less in scope than a reasonable assurance engagement carried out in accordance with ISAE 3000 revised, and consequently does not enable us to obtain assurance that we would become aware ofall significant matters and events that might be identified in a reasonable assurance engagement.
The procedures we performed on the NFS are based on our professional judgement and include inquiries, primarily of the parent's personnel responsible for the preparation of the information presented in the NFS, documentai analyses, recalculations and other evidence gathering procedures, as appropriate.
lndependent auditors' report on the consolidated non financial statement pursuant to article 3.10 of Legislative decree no. 254 of 30 December 2016 and article 5 of the Consob Regulation adopted with Resolution no. 20267 of 18 January 2018
To the board of directors of ELICA S.p.A.
Pursuant to article 3.10 of Legislative decree no. 254 of 30 December 2016 (the "decree") and article 5 of the Consob (the ltalian Commission far listed companies and the stock exchange) Regulation adopted with Resolution no. 20267 of 18 January 2018, we have been engaged to perform a limited assurance engagement on the 2020 consolidated non-financial statement of the Elica Graup (the "group") prepared in accordance with article 4 of the decree and approved by the board of directors on 16 March 2021 (the "NFS").
AUDITORS' RESPONSIBILITY
CONCLUSION Based on the procedures performed, nothing has come to our attention that causes us to believe that the 2020 consolidated non-financial statement of the Elica Group has not been prepared, in all material respects, in accordance with the requirements of articles 3 and 4 of the decree and the GRI Standards.
Ancona, 25 March 2021
KPMG S.p.A.
(signed on the original)
Gianluca Geminiani Director of Audit
Specifically, we carried out the following procedures:
Moreover, we checked the above against the disclosures presented in the NFS and carried out the procedures described in point 5.a).
a) we held interviews and obtained supporting documentation to check the qualitative information presented in the NFS and, specifically, the business model, the policies applied and main risks far consistency with available evidence,
b) we carried out analytical and limited procedures to check, on a sample basis, the correct aggregation of data in the quantitative information;
~ we visited Elica S.p.A. and Airforce S.p.A., which we have selected on the basis of their business, contribution to the key performance indicators at consolidated level and location, to meet their management and obtain documentary evidence supporting the correct application of the procedures and methods used to calculate the indicators.
CONCEPT DESIGN & ART DIRECTION Tonidigrigio
COORDINATION QHSE Management System Coordinator
136 ELICA
www.elica.com
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