Environmental & Social Information • Jun 8, 2018
Environmental & Social Information
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Pursuant to Italian Legislative Decree no. 254 of 2016
| LETTER TO THE STAKEHOLDERS | 5 |
|---|---|
| ABOUT OUR REPORTING | 7 |
| 1. APPROACH TO SUSTAINABILITY 1.1 Identification of stakeholders 1.2 Materiality Analysis |
12 12 16 |
| 2. THE EL.EN. GROUP 2.1 Our history 2.2 Governance of the El.En. Group 2.3 Risk management 2.4 Ethics, integrity and compliance |
22 24 26 27 29 |
| 3. OUR BUSINESS 3.1 Supply chain 3.2 Research and Development as an instrument of innovation 3.3 Quality and safety of our products |
34 35 36 40 |
| 4. OUR PEOPLE 4.1 Diversity and equal opportunity 4.2 Training 4.3 Health and Safety 4.4 Welfare of people |
44 46 46 47 47 |
| 5. SOCIAL IMPACT OF THE GROUP 5.1 Economic value generated and distributed to the stakeholders |
52 54 |
| 6. CONSERVATION OF THE WORLD'S ARTISTIC HERITAGE | 58 |
| 7. ENVIRONMENTAL RESPONSIBILITY | 64 |
| 8. PERFORMANCE INDICATORS | 68 |
| 9. GRI CONTENT INDEX | 78 |
| AUDITOR'S REPORT | 89 |
Leonardo Da Vinci
To our Stakeholders,
For the first time in its history, the El.En Group is publishing a Consolidated Non-Financial Statement (from now on called "NFS"). This document represents another step forward in the growth process that the Group has undertaken, a growth that is not only economic, organizational and managerial but also sustainable.
This is because sustainability means not only creating value over time but being ready to successfully meet the new challenges of tomorrow.
Up to now our financial reports only analyzed the economic and financial performance of the companies, whereas with the NFD we will try to go farther and offer a panorama of the policies and the commitment of the El.En. Group and the people that constitute it, toward a "sustainable" management of its business in order to set the goals for improvement and make them accessible with transparency to all those concerned with an aim to consolidating their trust.
In this regard, we consider the welfare of our personnel, the quality of our products, the investments in research and development, and the protection of our cultural, social and artistic heritage as well as the respect for the environment the central pillars of the daily management of our activities and the departure point for the planning of all our future initiatives.
The creation of sustainable value for the future of our planet and the people that inhabit it, in fact, represents a positive and necessary challenge for all companies.
This document, which clarifies the objectives and the initiatives promoted for this purpose, confirms the enthusiasm and the commitment that we place in all the areas in which we operate and represents an important demonstration for all of our stakeholders of the path we have chosen, a path which has given us great satisfaction and which continually spurs us on to improve.
The President Gabriele Clementi
This document represents the first Consolidated Non-Financial Statement (hereinafter the "NFS") of the companies belonging to the industrial Group comprised of El.En. S.p.A. (hereinafter the "Parent Company") and its subsidiaries (hereinafter the "El.En. Group" or "the Group"). The NFS reports, to the extent that is necessary to ensure an understanding of the Group's operations, performance, results and the impact regarding the topics considered material and set out in Articles 3 and 4 of the Legislative Decree 254/16, with reference to the financial year 2017 (from the 1st of January to the 31st of December).
As established by Art. 5 of Italian Leg. Decree 254/16, this document constitutes a separate report and is marked with specific wording in order to connect it to the NFS required by law.
The NFS represents a first step towards an even more transparent and comprehensive sustainability communication, as well as being an opportunity for communicating the annual results of the sustainability performance that have been achieved during the financial year 2017 by the Group with and for its stakeholders.
This NFS has been prepared in accordance with the new standard «Global Reporting Initiative Sustainability Reporting Standards» established in 2016 by the GRI - Global Reporting Initiative (hereinafter "GRI Standards"), according to the «Core» option. Furthermore, for the preparation of the document the Guidelines CE 2017/ C215/01, have been taken into account.
The selection of the topics and the indicators reported in the document was based of the information assessed as relevant for the Group and its stakeholders during the Materiality Analysis, conducted from a Group point of view, as described in the chapter titled "Approach to sustainability" of this document. It should be mentioned that in relation to the information required by Art 3, sub-section 2 of Legislative Decree 254/16, in consideration of the type of business activity of the Group, the polluting air emissions other than greenhouse gases were not deemed relevant.
The reporting and editing activities of this document involved several Functions across all the geographical areas in which the Group operates, centrally coordinated by the working group dedicated to the project.
The scope of the economic and financial data and information is the same as that of the Annual Financial Report. The scope of the social and environmental data and information presented is the same as that of the companies consolidated on a line-by-line basis in the Group Annual Financial Report. Consequently, it includes the Parent Company and those Italian and foreign companies in which El.En S.p.A controls directly or indirectly the majority of votes in the ordinary shareholders meeting. In 2017 no significant changes in the dimensions or in the organizational structure of the Group occurred.
The information and the data reported refer to the financial year 2017 (from January 1st 2017 to December 31st 2017). The data related to the previous financial year, when available, are reported only for comparative purposes and to facilitate an evaluation of the trend in the activity.
In addition, to fairly present the Group's performance and ensure the reliability of data, the use of estimates has been limited as much as possible. Any estimate in this document is made using the best available methods and is expressly noted. The Consolidated Non-Financial Statement is published annually: this 2017 version was approved by the Board of Directors of El.En S.p.A. on March 15th 2018.
The NFS was subject of a limited assurance engagement (according to the criteria set out by the ISAE 3000 Revised principle) by Deloitte & Touche S.p.A. which, at the end of the work performed, released a specific report with regard to the compliance of the information contained in the Consolidated Non-financial Statement prepared by El.En S.p.A. as required by the Legislative Decree 254/2016.
The El.En. Group is well aware of its responsibility toward society and the environment and has taken the direction of a continual development of their initiatives in relation to sustainability. The Group is committed to
the adoption of a Group sustainability plan which will be approved by the Board of Directors of El.En. S.p.A. by December 2018. In particular:
The Group pays attention to the responsible management of its activities, seeking a balance between economic objectives and indispensable environmental requirements. Moreover, the Group is committed to the adoption of a medium to long-term Group environmental policy for the purpose of controlling and reducing the environmental impact of its activities.
The Group protects human rights through the adoption and dissemination of the Ethics Code which requires conformity with the Universal Declaration of Human Rights issued by the United Nations and requires that it be respected also by its main suppliers. In particular, the Parent Company requires compliance with the Ethics Code by their consultants, distributors, agents and suppliers of critical components. Moreover the Group is committed to the adoption of a Group Human rights policy and to institute specific training in this field especially in those countries where legislation is not as restrictive as in Italy.
This subject is regulated by the Ethics Code of the Group to which all subsidiaries, associated companies and the main suppliers must comply. Moreover, the subject is overseen by the Parent Company and its subsidiaries Deka M.E.L.A. S.r.l. and Quanta System S.p.A. through the Organizational Model pursuant to Italian Legislative Decree 231/2001. For the purpose of re-enforcing its anti-corruption and bribery system, the Group has also committed to the adoption of a Group anti-corruption policy.
The development and implementation of the aforementioned plan may require about two years; the implementation timing of the individual activities will be further described in detail in the sustainability plan.
The Group has always paid particular attention to the quality and safety of its products and, to this aim, the main manufacturing companies of the Group have adopted a quality control system and obtained certification ISO 9001* and ISO 13485** related to the quality control systems for medical devices.
Moreover, the Group bases its critical success factors also on its capacity for innovation, as demonstrated by the investments in research and development which have the objective of creating innovative systems and applications to meet the needs of customers and create new ones.
In the Ethics Code, the Group has codified its commitment to respect the dignity, the health, the safety and the privacy of its employees and collaborators. Moreover, as part of the quality control system (ISO 9001) adopted by the main manufacturing companies of the Group, the certified companies safeguard the aspects related to the management of the employees. In particular, the Parent Company has conducted a codification of the procedures for the management of human resources as well as a profiling of the company functions with a detailed description of the responsibilities and skills necessary.
*ISO-9001 Certified companies: ASA S.r.l., El.En S.p.A., Deka M.E.L.A. S.r.l., Penta Chutian Laser (Wuhan) Co. Ltd and Penta Laser Equipment Wenzhou Co. Ltd, Quanta System S.p.A. and Asclepion Laser Technologies GmbH;
**ISO 13485 Certified companies: ASA S.r.l., El.En S.p.A., Deka M.E.L.A. S.r.l., Quanta System S.p.A. and Asclepion Laser Technologies GmbH.
Identification of stakeholders
Materiality analysis
In light of the developing context and since we wish to communicate our commitment to sustainability, we began by reflecting on some of the main aspects which might be relevant for the Group and for our stakeholders by using an approach based on transparency, integrity and honesty, for the purpose of involving our readers not only in the economic objectives of the company but also in our social and environmental goals.
We have recognized the importance of sustainability and, as part of our company strategy, we have started a procedure for mapping and identifying our stakeholders, for the purpose of considering in our sustainability strategy all the individuals and institutions which could be directly influenced by it:
The chart below shows the main channels for communication and dialogue with the stakeholders of the Group:
| Stakeholder | Topic | Main dialogue instruments | ||
|---|---|---|---|---|
| Human Resources | • Growth and training • Health and safety in the workplace • Diversity, equal opportunity and non discrimination • Human rights and working conditions • Quality of work • Ethics, integrity and compliance • Identity and values • Industrial relations |
• Intranet portal • Company Mailing list • Communication from top management • Collective bargaining • Training and updating courses |
||
| Universities and Research centers |
• Research, development and innovation • Transparency |
• Communication from top management • Financial report • Scientific publications • Calls and competitions • Experimentation and research projects |
||
| Clients (B2B) | • Product quality and safety • Anticipating and identifying the needs and expectations of clients • Customer trust and satisfaction |
• Institutional web site • Evaluation of customer satisfaction • Handling of complaints • After-sales service • Advertising |
||
| Consumers (B2C) | • Consumer trust and satisfaction • Product quality and safety |
• Institutional web site • Handling of complaints • After-sales service • Advertising |
||
| Local community | • Indirect social impact • Respect for the territory • Support of employment • Legality • Support of social initiatives |
• Institutional web site • Local meetings and events • Press releases • Collaboration and support of the artistic and cultural heritage in sites of public interest • National and regional research projects |
||
| Institutions and regulatory bodies |
• Corporate Governance • Trasparency • Legality • Economic and financial performance • Indirect social impact |
• Institutional web site • Disclosures required Reports and financial statements • Shareholders' meetings • Spreading of regulated information • Investor Conference • Press releases |
| Stakeholder | Topic | Main dialogue instruments |
|---|---|---|
| Suppliers | • Trasparency • Ethical responsibility • Human rights and working conditions • Continuity of business relations • Qualification and evaluation • Negotiating conditions • Development of partnerships |
• Institutional web site • Partecipation in initiatives and events • Negotiating relations • Technical qualification meetings • Regular audits |
| Shareholder and investors |
• Corporate Governance • Trasparency • Economic and financial performance • Ethics, integrity and compliance |
• Institutional web site • Financial report • Shareholders' meetings • Spreading of regulated information • Investor conference • Press releases |
| Agents and Distributors |
• Trasparency • Ethics, integrity and compliance • Human rights and working conditions • Continuity of business relations • Negotiating conditions • Development of partnerships |
• Institutional web site • Partecipation in initiatives and events • Negotiating relations • Training and updating courses |
Our companies interact and communicate also with several associations operating in the sector or in the territory in which the Group is active. The chart below shows these relationships:
| Associazione | Società |
|---|---|
| Confindustria | El.En. S.p.A.; Deka M.E.L.A. S.r.l., Ot-las S.r.l.; Esthelogue S.r.l.; ASA S.r.l. |
| Confcommercio | El.En. S.p.A.; Deka M.E.L.A. S.r.l. |
| ESU-EDA - Associazione dei fustellifici italiani | Ot-las S.r.l. |
| Comitato elettronico italiano | El.En. S.p.A. |
| AITA – Associazione Italiana Tecnologie Additive | El.En. S.p.A. |
| IBC - Associazione Beni di Consumo | El.En. S.p.A.; Deka M.E.L.A. S.r.l.; Esthelogue S.r.l.; Pharmonia S.r.l. |
| ACIMIT – Associazione Italiana Costruttori Macchine Industriali |
Ot-las S.r.l. |
| Associazione | Società |
|---|---|
| CEF – Consorzio Energia Firenze | El.En. S.p.A. |
| FAPIB – Associazione Nazionale Fornitori Attrezzature per Acconciatori ed Istituti di Bellezza |
Esthelogue S.r.l. |
| Assorestauro | El.En. S.p.A. |
| CUOA – Centro Universitario di Organizzazione Aziendale |
ASA S.r.l. |
| Laser Industry Association | Penta Laser Equipment Wenzhou Co. Ltd; Penta-Chutian Laser (Wuhuan) Co. Ltd |
| Laser Processing Committee of the Chinese Optical Society |
Penta Laser Equipment Wenzhou Co. Ltd; |
| Optical Radiation Safety and Laser Equipment Technology of Standardization Administration of the People's Republic of China |
Penta Laser Equipment Wenzhou Co. Ltd; |
| Japan Society for Laser Surgery and Medicine | Deka Japan Co. Ltd |
| Japan Medical Laser Association | Deka Japan Co. Ltd |
| PhotoMedicine Dermatology Therapy Association | Deka Japan Co. Ltd |
| Japan Esthetic Management Association | With Us Co. Ltd |
| Japan Esthetic Industrial Association | With Us Co. Ltd |
| Beauty Equipment Safety Promotion Association | With Us Co. Ltd |
| Economic World Club | With Us Co. Ltd |
The process of evaluating the relevant subjects was conducted through a materiality analysis which allowed us to identify the main aspects in terms of sustainability.
A working group made up of the top management of the Group, during a workshop, evaluated the relevance of the main aspects of a social, environmental, economic and governance nature which had been identified on the basis of the GRI Standards and an analysis of best practice in the sector.
The final result of the evaluation is shown on the materiality matrix below, in which the horizontal axis represents the relevance of the subjects for El.En, while the vertical axis of the ordinate shows the relevance of the same subjects for the stakeholders. .
Macro-aree: Environmental Economy and Governance Social Human resource
The most relevant topics represented in the sector on the right, are related to the aspects concerning research, development and innovation of the product and its quality and safety as well as those aspects that are an intrinsec part of the economic and financial performance and aspects related to the health and professional growth of our personnel. These topics confirm the commitment of all of our companies to a continued development of quality products and services that are increasingly at the forefront, as well as their commitment to the creation of a working environment that is safe and productive which will optimize results also for our clients.
The main topics that we have identified are shown in the chart below:
| Material Topics |
Description | Scope of impact |
Type of impact |
|---|---|---|---|
| Research, development and innovation |
Research and development activity aimed at the continual improvement of the quality and the innovation of the product while guaranteeing, when possible, the safeguarding of the intellectual property. |
Group; University and research centers |
Direct; Related to the business relationships |
| Product quality and safety |
Identification and reduction of potential risks for health and safety related to the product along the entire value chain. |
Direct; related to the business relationships |
|
| Achieving positive economic and financial Economic results both in the short and long term and financial consistently with the creation of value for performance the different categories of stakeholders. |
Group | Direct | |
| Training and Development and training programs to professional growth improve the professional skills of the of the employees Group's employees. |
Group | Direct | |
| regulations and agreements compliance Occupational health and promotion of policies and practices and safety that minimize risks for the health and safety of the personnel. |
Group employees * |
Direct | |
| Implementation of an extended and structured system for the identification, evaluation and management of risks and Risk management uncertainties, including environmental risks and/ or social or new risks that could emerge and are relevant to the activity of the Group. |
Group | Direct | |
| Ethics, integrity and compliance |
Promotion of a good Corporate Governance and respect of the standards related to ethics, integrity and conformity with the laws, regulations and self disciplining codes for the category. |
Direct, related to the business relationships |
|
| Development of practices and working conditions that are adequate to assure Diversity, equal equal opportunity by removing every opportunity and type of discrimination and moral or non-discrimination psychological violence against gender, age, race, religion or sexual orientation. |
Group | Direct |
*The organization evaluates the possibility of gathering data from the employers of external collaborators and suppliers who operate on the sites of the Group for the purpose of reporting accidents on the workplace or occupational diseases.
| Material Topics |
Description | Scope of impact |
Type of impact |
|
|---|---|---|---|---|
| Human rights and working conditions |
Respect, promotion and protection of human rights and working conditions during work related activities(for example, prohibition of child or forced labor and respect of ethics and/or conduct codes). |
Group, suppliers |
Direct, related to the business relationships |
|
| Indirect social impacts |
Indirect social impact related to the use of the products of the Group, even by means of donations benefitting the collectivity. |
Clients (B2B) e Consumersi (B2C) |
Indirect | |
| Environmental performance |
Commitment of the Group to the development of policies or procedures to mitigate its environmental impact (for example, efficiency of Energy consumption, reduction of water consumption and greenhouse emissions). |
Group, suppliers |
Direct, indirect |
|
| Industrial relations |
Respect of freedom of association and expression of the workers, guaranteeing their right to be represented even by belonging to a labor union and/or category associations. |
Group | Direct | |
| Relations with institutions |
Relations with public institutions, collaboration and contributions toward the development of activities for research and innovation. |
Group, Institutions |
Direct, related to the business relationships |
Our history
The Governance of the Gruppo El.En.
The risk management system
Ethics, integrity and compliance
The El.En. Group is one of the most important companies in the world for the manufacture and sale of laser systems; they are active in the production, research and development, distribution and sales of high performance, high tech systems. Our products are characterized by technological excellence and quality.
| 1.212 People |
|---|
| Oltre 20.680 Hours of training |
| 25.054 GJ Energy consumption |
| 27.524 m3 Water consumption |
The mission of El.En. Group is divided into three main categories:
For a detailed description of the individual companies and their relative financial data, please consult the Annual Financial Report dated December 31st 2017 and published on the web site: www.elengroup.com.
The Headquarters of the Group is in Calenzano (Florence, Italy). The Group has a world presence; its main selling markets are: Italy, Europe, the United States, China and Japan.
Production sites Sale Subsidiares
1 The structure refers only to the companies in which El.En. S.p.A. controls directly or indirectly the majority of the votes in the ordinary shareholders' meeting..
El.En S.p.A. was founded in 1981 in Florence by Professor Leonardo Masotti, professor of electronic engineering at the University of Florence, and his most brilliant student, Gabriele Clementi. Over the years, thanks to the ability of the founders and the intense activity of research and development, the company developed a wide range of laser devices for use in the medical and industrial fields.
From 1990 to 1993, El.En. S.p.A. amplified its presence on the market by creating three new companies: DEKA M.E.L.A. S.r.l. for the distribution of biomedical equipment and still today represents the main distribution channel for the systems developed in the El.En. factory in Calenzano. Over the years Deka has gradually consolidated its position on the market, first in Italy and later in other countries. It now operates in the sectors of dermatology, aesthetics and surgery. Lasit S.p.A. for the manufacture of laser systems for industrial marking, is specialized in the production of marking systems for small surfaces; the company now conducts the activities of manufacture and development of its products at its headquarters in Torre Annunziata (NA); the company's mechanical workshop is complete with the most technologically advanced equipment (including laser cutting systems) which allows them to maintain a high degree of flexibility so that they can customize systems for their clients, a feature which makes them unique for this market. Cutlite Penta S.r.l. presently conducts its activity manufacturing laser systems for industrial applications with CO2 laser cutting and with fiber laser cutting of metals, plastic, molds and wooden materials. At the end of the financial year 2017, as part of the process of re-organization of the industrial sector of the Group, Cutlite Penta was created as a new company for all the activities related to laser cutting systems. Moreover, Cutlite Penta was renamed Ot-las, and the name Cutlite Penta was given to the newly created company. This was done in order maintain the correspondence between the name of the company and the brands that each produced since Ot-las kept the business of laser systems for marking, which had always been sold under the brand name Ot-las, while the brand name Cutlite Penta has always been connected with laser cutting systems. It should be noted, however, that the new Cut-lite Penta company is effective only starting in January 2018.
In December 2000, El.En. S.p.A. was listed on the stock market, thus confirming its status as a solid company and becoming very attractive on the financial markets thanks to its line of products with high technological value.
In the month of May 2002, El.En. S.p.A. put in place their plans for rapid expansion on the US market by buying the majority share of the American company, Cynosure Inc..
In 2003 the Group purchased Asclepion Laser Technologies GmbH from Carl Zeiss Meditec; Asclepion is now one of the most important companies in the Group and is one of the three business units with which the Group operates on the market of laser systems for medical applications. The company is favored by its geographical position in Jena, one of the cradles of the world electro-optical market and thanks to its ability in associating its image with the very high consideration with which German high-tech manufacturing has at a world level, Asclepion now enjoys an excellent reputation on the international markets.
In 2004 Quanta System S.p.A entered in the scope of consolidation of the Group. The company was born as a research laboratory and has been able to maintain over the years its superior capacity in the manufacture of technologically advanced laser systems for applications in the medical sector, to which it has almost entirely dedicated its activity. Quanta is now recognized for its excellence at an international level for its innovativeness and technological research in the laser sector.
In November of 2005 a 60% share of ASA S.r.l. was acquired, thus taking control of it, by the subsidiary Deka M.E.L.A.; for its role in the Group, ASA was assigned the physical therapy sector.
In 2007 the subsidiary Cutlite Penta S.r.l., together with its local partner, Chutian Group of Wuhan, constituted a joint venture, Penta Chutian Laser (Wuhan) Co. Ltd in the Hubei region in central China, in which it has an equity share of 55%. The joint venture is supposed to manufacture laser cutting systems for the local market; it benefits from the systems technology of Cutlite Penta, the laser sources of El.En. and the experience of the local partner for the manufacturing, knowledge of the market and distribution.
In the same year, the Parent Company El.En. founded Cutlite do Brasil Alta tecnologia Ltda., for the distribution and manufacture in Brazil of laser systems for industrial applications, with headquarters in Blumenau in the state of Santa Catalina.
In 2009 the Group entered the segment of professional aesthetics by launching Esthelogue S.r.l for its own direct distribution in Italy. As a confirmation of the determination of the Group to expand its activities, Asclepion Laser Technologies GmbH, a subsidiary of El.En. and main supplier of technologies for Esthelogue, in 2011 underwrote a capital injection and became a 50% partner in the company.
In early 2013 the subsidiary Cutlite Penta S.r.l. entered into a second chinese joint venture, Penta Laser Equipment (Wenzhou) Co. Ltd; the purpose of the operation was to increase the Chinese production capacity by building a new factory and create a new stimulus for the development of products for the Chinese market, thanks also to the contributions made available by the local government.
In 2015 Asclepion, together with Deka M.E.L.A. founded Jena Surgical GmbH, to promote and distribute systems for surgical applications on the international markets.
Consequently, the Group can now count on a vast presence on the national and international markets with more than thirty subsidiary or associated companies operating in various segments of our business. The development of El.En. has contributed in the past and continues to contribute now to bring "made in Italy" products to the world with technologically advanced and highly innovative solutions and products.
The governance model chosen by El.En. S.p.A. follows the traditional system based on a Board of Directors which has the function of strategic direction and supervision, and a Board of Auditors which has controlling functions.
The Board of Directors is made up of six members, four men (67%) and two women (33%), and, as of December 31st 2017, was composed as follows:
| Position | Name | Year of Gender birth2 |
Executive (E) Non executive (NE) |
||
|---|---|---|---|---|---|
| Presidente and Chief executive officer |
Gabriele Clementi | M | 1951 | E | |
| Executive officer | Andrea Cangioli | M | 1965 | E | |
| Executive officer | Barbara Bazzocchi | F | 1940 | E | |
| Manager | Fabia Romagnoli | F | 1963 | NE – INDEPENDENT | |
| Manager | Alberto Pecci | M | 1943 | NE | |
| Manager | Michele Legnaioli | M | 1964 | NE – INDEPENDENT |
The composition, role and operation of the Board of Directors of El.En. S.p.A. are in compliance with the law and with the Codice di autodisciplina for companies listed on the stock market approved by the Committee for Corporate Governance and promoted by the Italian Stock Market, Borsa Italiana S.p.A..
The Board of Directors is made up of Executive and Non-executive directors.
The non-executive directors, two of which are independent, for the consulting and proposing functions of the Board are organized into three committees: risk management committee, the remuneration committee and the nomination committee.
Among other things, the Board is responsible for the system for internal audit and management of risks, in relation to which it defines the main criteria and periodically verifies the adequacy and the effective functioning, making sure that the main risks involving the Group have been correctly identified, measured, monitored and managed.
El.En. S.p.A. is one of the few companies listed on the stock market that, since it was founded, has always had a woman on its Board of Directors, first as sole administrator and later as executive administrator.
2 All of the members of the Board of Directors belong to the "Over fifty" age group.
The Supervisory Board supervises observance of the law and of the company by-laws, respect of the standards of proper administration, the adequacy of the organizational arrangements of El.En. S.p.A. for the aspects of competence, system of internal controls, administrative and accounting system used by El.En. S.p.A., and their effective functioning.
The other companies of the Group that are subject to Italian law follow the traditional model and therefore are administered by a Board of Directors or by a single CEO and, when necessary, have a controlling commission and are subject to auditing.
In a macro-context that is continually evolving, where the themes of sustainability of company activities, the fight against climate change, the protection of the environment and the implementation of suitable policies for development are of fundamental relevance, every economic operator is called to evaluate with increasing attention, the evolution of the trends and the new challenges that these create, in order to grasp the opportunity and adequately manage the related risks.
In a micro-context in which for El.En. S.p.A. and the Group the main objective is the sustainability of the company activities over a mid- to long-term period and the creation of value while respecting the external members of society, the system of internal controls and risk management is intended to be a set of methods of analysis, procedures, organizational functions and structures, and the related activities intended to identify the individual company risks and the methods to be used to manage them as well as the organization of the system to defend them.
The preparation of an adequate system of controls is aimed at an efficient management of the company , the safeguarding of its capital, the efficient management of its operations, the reliability of the information – both financial and non-financial - issued by the company, as well as the respect of the laws, regulations and company bylaws and internal procedures.
With an aim to the creation and development of an adequate system for risk management, the Parent Company has defined its own system of internal controls and risk management, above all in relation to the process of financial information, that is based on the CoSo Framework, following international best practice. The main characteristics of the internal controls and risk management systems are represented, on one hand, by rules and procedures, and, on the other, by governance and control commissions. The rules are, first of all, made up of a series general principles, listed in the Ethics Code, and, secondly, by a series of second level procedures (those of ex D. Lgs. 231/01, L. 262/05, L. 81/09, internal regulations for the treatment of confidential information, operations with related parties, internal dealing, etc) that make it possible to act within the company reality and to make the above mentioned general principles effective.
On the other hand, they carry out the observance controls, the rules and procedures on the basis of competency and functions defined and attributed by the Board to the different commissions at their respective levels.
The bodies, each with its own area of competence, which are involved in the system of internal controls and risk management are as follows:
The Supervisory Board appointed by the shareholders' meeting, has the function of the commission of internal controls and accounting audits, with the tasks and responsibilities described in art. 19 D. Lgs. 39/2010;
• Internal Auditor, appointed by the Board of Directors, has the task of verifying, both continually and sporadically for certain specific necessities, the operations and suitability of the internal controls system and risk managementi;
The management process of the Sytem of Internal Controls guarantees protection against risks related to the achievement of strategic objectives, operational, reporting and compliance goals, both for the Parent Company and the subsidiary companies that have adopted this approach. The main risks inherent to sustainability are shown below:
The risk is related to the lack of integrity on the part of the mangement or the employees of the Group who might behave in an unethical manner or one which is not authorized, illegal or fraudulent, with particular reference to active or passive corruption, corruption between private individuals and human rights.
The Group has adopted an Ethics Code for the purpose of reenforcing the divulgation of a company culture based on the importance of social and ethical responsibility in conducting business and company activities. The Parent Company and the Italian subsidiaries, Deka Mela S.r.L., Quanta System S.p.A. and ASA S.r.l. have adopted an organizational model in conformity with D.lgs 231/2001. Moreover, the Group is committed to the adoption of an anti-corruption policy.
The risk is related to the lack of compliance with the current laws and regulations related to environmental protection and occupational health and safety in the countries in which the Group operates.
The Group has stated in the Ethics Code its commitment for the protection of the environment and health and safety and adopts management approaches that are suited to the management of these topics. In particular, the Italian companies belonging to the Group have stated their commitment to the topics of the environment and health and safety in the organizational Model drawn up in conformity with Legislative Decree 231/2001. Moreover, the Group is committed to the adoption of an environmental policy for the purpose of controlling and reducing the environmental impact of their activities.
The risk is related to an inadequate management of the process of attracting, selecting, developing and motivating key professional figures in the Group.
The Group has stated in the Ethics Code its commitment to respect and protect the dignity, health, safety and privacy of its employees and collaborators. Moreover, the companies of the Group adopt management approach which have the objective to manage personnel matters.
The risk is related to the lack of respect for human rights which are inalienable and which all people possess, which could undermine the correct and responsible management of the activities of the company. The risk is related in particular to the operators and suppliers of the Group who operate in countries (for example, in Asia) where the legislation in this respect is not as restrictive as in Italy.
The protection of human rights is explicitly mentioned in the Ethics Code of the Group and must be respected by all the companies belonging to the Group. The Group extends the application of their Ethics Code also to all their suppliers and makes explicit reference to the Universal Declaration of Human Rights issued by the United Nations Organization. Moreover, the Group is committed to the adoption of a policy related to human rights and plans specific training especially in those countries where the legislation in this respect is not as restrictive as in Italy.
The El.En. Group is well aware of its responsibility towards society and the environment in which it operates and, for this reason, since 2008 the Parent Company has adopted its own Ethics Code as a tool for re-enforcing and promulgating a company culture that is founded on the importance of ethical and social responsibilities in conducting the business and activities of the Company.
The Ethics Code defines the principles and the values which must be followed in every moment of the production process and must always be observed in relations between colleagues, collaborators and when buying or selling: legality, impartiality, honesty, correctness and transparency, privacy, fairness, respect for collaborators and the integrity of people. The Ethics Code is applied to the Group and to all those who conduct an activity in its favor.
The companies of the Group have accepted the Ethics Code and, where necessary, have translated it into the local language. They have spread the Code to their employees and collaborators using the most suitable means of communication. The updated version of the Code is always available on the internet site . www.elengroup. com, in the section titled "Investor Relations – Governance – Company Documents".
The principles laid out in the Ethics Code are intended to protect the integrity of the Group and to ensure the compliance with the laws and regulations of every country in which the Group operates; the Group will establish opportune channels of communication which can be used to report any violations or suspected violations of the Ethics Code, or for requests for explanations. Violation of the principles defined in the Code constitutes nonfulfillment of contractual obligations derived from work and/or collaboration relations and may be cause for suing for damages.
In contracts stipulated by the Parent Company with consultants, distributors, agents and suppliers of critical components explicit reference is made to the Group Ethics Code and the contract signer must declare that they have received a copy and accepted it.
Moreover, the Parent Company and the Italian subsidiaries, Deka M.E.L.A. S.r.l., Quanta System S.p.A. and ASA S.r.l. have adopted an Organizational Model in conformity Italian Legislative Decree 231/2001 (from now on also called "Organizational Model"), intended to prevent their employees and/or collaborators from committing offenses in the interest of the company. This model for organization, management and control of company activities is made up of a series of general rules of behavior in the areas which have been identified as sensitive for the purpose of preventing the so-called "presumed offenses" and by a structured system of procedure and surveillance activities intended to prevent this type of offense.
The protected areas which have been identified because they are sensitive are the prevention of: offenses related to safety and health in the workplace ( ASA S.r.l. has identified just this one as a sensitive area in which to create a special section of their Organizational Model); offenses against the public administration; company crimes; receiving stolen goods, money laundering, use of money, goods or facilities of illegal provenance; moreover, El.En. S.p.A. and Deka M.E.L.A. S.r.l. have identified as sensitive also the areas related to the following crimes: market abuse, transnational crimes and environmental crimes.
With particular reference to the risks related to ethical behavior, the El.En. Group has focused attention on the topic of prevention of risks related to corruption.
In this context, the Parent Company El.En. S.p.A. and its subsidiaries Deka M.E.L.A. S.r.l. and Quanta System S.p.A. have analyzed, determined relevant, mapped this risk and inserted it in their Organizational Model Italian Legislative Decree 231/2001.
These companies have conducted an analysis of the risks of crimes being committed against the public administration (including acts of corruption) from which a high level of risk did not emerge, in consideration of the existence of preventive measures and the type of activity that the company conducts. Nevertheless, they identified most sensitive areas of activity of the company and a special section of the Organizational Model was dedicated to the prevention of this type of crime.
The analysis, therefore, is part of the mapping of the activities and the identification of the risks connected with each one of them by assigning a certain number of points (the parameters for assigning the points are: occurrence in the past, existence of company procedures, impact of the penalties for that type of crime, and frequency of occurrence). We decided that the frequency of the event and the impact of the penalties made it opportune to dedicate a part of the Organizational Model to all the preventive measures connected to this type of crime, although the occurrence in the past (none up to now) and the existence of company procedures lowered the risk.
The Ethics Code also contains a precise set of standards for avoiding corruption activities. In 2017 no cases of corruption and/or reports of corruption were recorded.
The Group sustains and respects the rights of individuals in conformity with the Universal Declaration of Human Rights issued by the United Nations and therefore they require the utmost respect of individuals and of the regulations that are applicable to the workplace and any discriminatory behavior or threat to the safety of people will not be tolerated. The Group considers impartiality of treatment a fundamental value in every relationship, both inside and outside of the workplace and believes that the individual, his/her ideologies and rights are values that must be protected. The behavior of every employee and collaborator must comply with the principles and the rules expressed in the Ethics Code and the laws and contractual obligations that govern employment. By extending their own Ethics Code to collaborators and suppliers, the El.En. Group institutes a safeguard intended to guarantee the respect of human rights (prohibiting discrimination, forced labor, child labor and protecting free association) even in the areas considered to be potentially more at risk in relation for these topics (for example, the supply chain).
Relations with government and institutions are maintained in respect of the legislative and administrative regulations and in a spirit of the maximum collaboration.
For this purpose, as defined in the Ethics Code, the Group commits itself to:
In order to guarantee maximum transparency in relations, the contacts with institutional representatives must take place only with individuals who have received a specific mandate from the persons who have been authorized to do so by the Group
Interaction with the Public Administration, with EEC institutions, the international bodies, institutions and agencies are always inspired by the principles of legality, loyalty, correctness and transparency.
With all of the authorities who have functions of inspection, surveillance, regulation and guarantee, the Group maintains relations of full collaboration and immediately places at their disposal all information that is requested and complies with all provisions they may issue.
Supply chain
Research & Development as a tool of innovation
The quality and safety of our products
El.En. S.p.A. leads a group of companies that operate in the field of manufacture, research and development, distribution and sales of laser systems. The activities of all the companies are coordinated with an aim to provide optimal services to our markets taking advantage of the dynamic features and flexibility of the individual business units without losing the advantage of a coordinated management of all the technical, managerial, commercial and financial resources.
Our activity is divided into two main sectors: the sector of laser systems for medicine and aesthetics (medical sector) and the sector for manufacturing processes (industrial sector) Each sector is divided into various segments which are different from each other on account of the specific laser application and, therefore, for the specific technologies on which it is based, as well as for the type of client it is intended for. Our activity produces a wide variety of products and it serves a wide range of clients, especially if one considers our global presence and, consequently, the need to deal with the particular customs that each area of the world has in the use of these technologies.
Although they both use laser technology and share numerous strategic components and some activities at the manufacturing ad R&D level, the two sectors serve markets that are totally different and the activities within these markets are organized in such a way as to satisfy the radically different requirements of the two types of clientele that they serve.
For both sectors, the mid- to long-term growth outlook is positive. In the medical sector, there is a constant increase in the demand for aesthetic and
medical treatments from a part of the population which, on the average, tends to grow older and wishes to limit as much as possible the effects of aging; there is also an increase in the demand for technologies that can reduce the time necessary for surgical operations and post-operative recovery, or to increase the effectiveness of the operation while reducing the impact on the patient (minimally invasive) and the overall costs.
For the industrial sector, laser systems represent an increasingly indispensable instrument for manufacturing since they represent flexible and innovative technologies for the companies that compete on the international market and wish to raise their qualitative standards and improve productivity. Although they continue to be widely used on the traditional manufacturing markets, laser systems represent a high-tech component which, thanks to the continual innovation of the laser product and of the processes that can be performer with it, show an extremely positive outlook for the future.
It should be recalled that, in the industrial sector, our Group is the leader in Italy and abroad in the sector of laser for restoring works of art: for many years now the Group has contributed to the conservation of the world's artistic heritage by offering advanced non-destructive solutions that have been developed in collaboration with the most important national research centers and tested at some of the outstanding restoration laboratories.
The chart below shows how the numerous companies belonging to the Group are divided according to the type of activity they conduct:
Along with the sales of the laser systems, the Group offers after-sales assistance which is an indispensable support for the installation and maintenance of laser systems, for the sale of spare parts and consumables and for technical assistance.
The division of the Group into numerous different companies reflects their strategy for the distribution of the products and coordinating the activities of research and development and marketing. Above all, in the medical sector, the various companies that have gradually become part of the Group have maintained a specific identity based on the typology and segment of the product, with brand names and distribution networks that are independent from the other companies and constitute a separate business unit which benefits from the cross-fertilization that each research group has had on the other.
Our Group is made up of manufacturing companies serving the medical and industrial sector and sales companies serving the medical sector. The medical companies supply their products to qualified distributors or directly to the end users ( medical clinics, doctors, etc. ) while the industrial companies supply their products prevalently to the end users.
The components used in the assembly of the final product can be purchased from the catalog or according to our specifications from outside suppliers or produced in our own factory. The assembly of the components and the basic machining can be conducted either in our factory or outside, by one of the manufacturing companies or by local jobbers. The supplies are usually related to components and accessories for manufacturing (technical accessories, critical components, industrial accessories, etc…). The other categories of purchases include office supplies, software and computer products, and packaging for shipping.
For services, the companies of the Group usually turn to outside suppliers, for example, for computer assistance, technical maintenance, services from scientific laboratories and certifying institutions, services for the removal of toxic waste, advertising and marketing, financial services and shipping.
In 2017, the amount spent on purchases at a consolidated level was 166,7 million Euros, while jobbing amounted to 5,5 million Euros.
For the management of its suppliers and contractors, the Group continually conducts a preventive analysis and evaluation which is intended to gather information on the tendencies of the market, the evolution of the present suppliers and of the potential ones, technical up-dating and regulations for the sector in relation to the sale of its products.
For the process of selection and the relations with its suppliers the Group evaluates, consistently with the internal procedures and company schedules, the price level with reference to the objectives of cash and profit on a long term basis, as well as the presence on the market, technical capacity and reliability of the supplier.
The main goal is to establish long-term relations with our suppliers and contractors that are based on principles of legality, correctness and transparency as well as the principles contained in the Ethics Code of the Group. As already mentioned in paragraph 2.4 "Ethics, integrity and compliance", in the contracts signed by El.En. S.p.A. with suppliers of critical components, the signer of the contract must declare that they have received the Ethics Code and accepted it.
In particular, in the selection of its suppliers, the Group considers the following factors:
As far as this latter point is concerned, in the manufacturing companies of the Group, the selection of the suppliers follows a distinct procedure of qualification and approval in order to guarantee the quality of the product and maximum respect of delivery deadlines. The procedure requires the subscription of a form called the Suppliers qualification request form" which is used to evaluate the general level of the Quality system of the supplier with an aim to the continual improvement of the aspects that influence the quality of the products or the services that we acquire; for the supply of merchandise we also issue trial orders which allow us to run tests directly on the product.
In the case of particular types of products or services, for example, testing laboratories, the procedure "Qualification and approval" is mainly based on the analysis of the certification possessed by the supplier which was issued by the certifying institution and represents a guarantee of reliability. The supplier may also be subject to an audit: at the end of the analysis, on the basis of the outcome of all the test that have been conducted, the supplier will be inserted in the list or his qualifications will be deemed insufficient.
Once a supplier has been judged as qualitatively suitable, in any case, periodic evaluations are conducted to be sure that the necessary level is maintained. These evaluations take into consideration
aspects like the flexibility of the supplier, that is, his capacity to adapt to the requirements of the organization, speed of response and management of the unexpected, organizational structure and punctualness of delivery as well as the quality of the goods delivered.
The Group also runs annual inspections at some of the suppliers using a trained internal auditor, both as a routine and on account of anomalies or non-conformity like a drop in the quality of the product or services.
The adequacy of the range of products that we offer and our ability to continually innovate it in order to meet the requirements of the market and create new ones are the critical factors in the success of El.En. Group.
Our most outstanding feature is our capacity to think in a unique manner, to innovate considering the needs of the doctor and the patient in the medical sector rather than that of the client in the industrial sector departing from every intuition that might arise from close observation of problems that have not yet found a solution.
The competence that has matured and the dedication of our people is what makes the difference. The El.En. Group and the human resources that work for it are proud of their knowledge of the physical, bio-medical and technological phenomena that have matured in over thirty years of experience and which give rise to a special capacity for innovation of their know-how, production technologies, processes, products and related services.
The Group organizes its research and development activity according to a schedule based on mid- to long term results so that they can quickly and continually put out products that are innovative both in their performance and applications.
In the research activities that are conducted in our laboratories, as in the collaboration with important research centers, hospitals and universities, both at a National and International level, we have set no limits and are inspired by the passion for everything that is new or may become new.
For most of the activities the research conducted is of the applied type, while it is basic for some specific subjects which are generally related to activities having mid- to long-term objectives.
The chart below shows the costs sustained by the Group in 2017 for research and development:
| 31/12/2017 | 31/12/2016 | |
|---|---|---|
| Personnel and general expenses | 8.058 | 7.194 |
| Equipment | 169 | 149 |
| Material for testing and making prototypes |
3.944 | 2.317 |
| Consultants' fees | 712 | 683 |
| Jobbers | 54 | 57 |
| Intangible goods | - | - |
| Total costs for R&D | 12.936 | 10.401 |
Amounts are expressed in thousands of euros.
The amount spent corresponds about to 5% of the consolidated sales volume of the Group. Most of the expenses are paid by El.En. S.p.A. and amount to 7% of its sales volume.
In 2017 the El.En. Group received in capital account grants for research and development amounting to 300 thousand Euros.
The Parent Company El.En. at this time holds 29 patents, 5 of which are pending, and 32 with brand name.
For research and development in the medical field, the list below shows some of the main directions taken by the Group:
In the industrial sector the Group is conducting the following activities:
Improvement of the performance of the galvanometric components of scanning systems.
For further information on research and development of the Group consult the Annual Financial Report 2017 which is available on the web site of the Group: www.elengroup.com.
El.En. S.p.A. has recently augmented the strategic functions of research and development for the purpose of maintaining the leadership of the company and the Group for innovation in the sector of medical lasers.
In a brief period of time the company implemented a process for the improvement of the efficiency and the effectiveness of the development of new products and reduced as much as possible the" time to market" without compromising the level of quality and reliability. We concentrated our resources on projects in areas of consolidated experience and focused on our Core Technologies.
Specific competence also emerged in other technologies, like, for example, in the sector of body contouring where, for the first time, microwave technology was applied. For this application and for the aesthetic market in general, which is now showing a strong growth, new products and new approaches are needed.
The mid- to long-term objective is to come up with substantial innovations which will allow El.En to increase its competitive edge on the market by presenting break-through products, thus consolidating their market position and opening new niches both in the aesthetic and surgical sectors.
There are three main technological directive for innovations: above all the implementation of technological innovations in the field of photonics, like the diode sources, fiber laser sources and ultrafast (picoseconds or femtoseconds) sources in order to optimize the interaction between radiation and tissue in a manner that is both effective and safe.
Secondly, new specific systems for cooling tissues to reduce to a minimum the collateral effects, including pain and post-treatment inflammation which will, at the same time, reduce the duration of the treatment.
Thirdly, the implementation and use of the most sophisticated diagnostic systems, which will make it possible to determine in the most reliable manner the reaching of the end point of the treatments, and guarantee the greatest efficiency in conditions of maximum safety for the patient.
Our commitment toward the quality and safety of our products is essential to guarantee their continued growth and success.
We have always focused our attention on the phases of design and development of our systems; our value also passes through the study and application of methods that are increasingly selective, effective and safe.
The Group is committed to the supplying of products of value to its clients for the purpose of creating a process of customer loyalty based on quality, reliability and safety, and to guarantee that these product requirements be identified and evaluated and that all necessary measures be taken to guarantee their conformity with the law.
To this aim, some of the Group companies are equipped with a "Manual for an integrated management system" which is in conformity with the requirements of TUSSL n. 81 of 2008, to describe the objectives and policies of the Management System for the Quality and methods with which it is applied. The manual defines the general criteria necessary for satisfying the requirements for safety and performance during the entire life cycle of the products just as they are sold; all of the manufacturing processes and the services rendered, the results of which cannot be totally verified by later monitoring and measurement, must be validated as
Special Processes. All those processes for which eventual defects may appear only after the product has been used or the service rendered enter into this classification.
El.En. S.p.A., Deka M.E.L.A. S.r.l., Quanta System S.p.A., ASA S.r.l. and Asclepion GmbH have implemented a Quality Policy which guarantees the conformity of the activities with the regulations of the national institutions of the country in which they are operating. Moreover, the different companies of the Group, depending on the geographical area and the type of business they run, must comply with the following standards:
| Company | Certification |
|---|---|
| ASA S.r.l. | • ISO 9001: 2015; • ISO 13485: 2006; • Directive 93/42/ECC Medical Devices |
| Deka Japan Co. Ltd e With US Co. Ltd |
Companies must comply with the regulations issued by the Japanese Ministry of Health, labor and welfare. To import and sell machines in Japan, companies must have a selling permit and the type of product imported must be approved in advance. The sales permit is renewed every 5 years and the permit for the sale of machinery is renewed for a period of 1 to 5 years on the basis of the risk it represents. |
| El.En S.p.A. e Deka M.E.L.A. S.r.l. |
• ISO 9001: 2008; • ISO 13485: 2012; • Directive 93/42/ECC Medical Devices |
| Penta Chutian Laser (Wuhan) Co. Ltd e Penta Laser Equipment Wenzhou Co. Ltd |
• ISO 9001: 2015 |
| Company | Certification |
|---|---|
| Quanta System S.p.A. | • ISO 9001:2015 • ISO 13485:2016 • Directive 93/42/ECC Medical Devices |
| Asclepion Laser Technologies GmbH |
• ISO 9001: 2008; • ISO 13485: 2012; • Directive 93/42/ECC Medical Devices |
| Cutlite do Brasil | • ACIB - Centro Empresarial de Blumenau • ABIMAQ (National Association of Machine Industries) • INDAC (Instituto Nacional Para Desenvolmiento de acrilico - National Institution for Development of Acrylic) • Conselho Regional de Engenharia e Agronomia de SC • Sindicato National da Industria de Maquinas • Sind. Trab. Ind. Met. Mec. Mat. Eletr. BLUMENAU |
Our products and our quality control system are certified by the most important institutions at a world level that are chared with the surveillance of the safety and effectiveness, above all, of medical devices. Our companies are subject to periodic inspections for the renewal of the certificates they possess which are indispensable for the export of our products to foreign countries.
The Group is committed to the achievement, through the motivation and involvement of their personnel , of a continuous improvement in the quality of its products and services; this objective is pursued through the optimization of company processes, according to criteria of efficiency and work methods that are univocal, homogeneous, simple and effective.
There is an increased tendency to implement a Quality policy that is oriented toward risk management as an instrument for evaluation and decision, for the purpose of pursuing continual improvement by taking preventive or corrective measures.
Consolidated Non-Financial Statement 2017 41
Diversity and equal opportunities
Training
Health & Safety
People's well-being
The El.En. Group firmly believes that their people represent an important resource for the company and that they should be put in a condition to give their best. The people and the collaborators involved in the activities of El.En. constitute a precious resource that must be protected and put to best use, especially in consideration of the high degree of qualifications that are necessary and the specialization which is developed during the relationship of employment or collaboration.
In the Group Ethics Code, El.En. has codified its commitment to respect and protect the dignity, health, safety and privacy of its employees and collaborators. In particular, the Group aims to protect the physical and moral integrity of its workers by informing them of their rights and the risks that they could run while operating in the workplace and guarantee working conditions that respect the dignity of the individual in conformity with the laws in force. The rights which protect the individual worker also include a constant commitment towards the creation of a workplace that is positive and productive for all, besides, obviously, being healthy and safe.
The focus on human resources is a very important topic which most of the manufacturing companies of the Group have adopted in conformity with regulation ISO 9001. On the basis of the provisions stated in this latter, in fact, the certified companies became involved in the defense of topics like the selection, training, development of skills and the definition of the responsibilities of the functions.
The El.En. Group aims at maintaining a high level of motivation among its people by placing at their disposal all the resources and instruments necessary to work well (financial resources, high quality equipment, adequate work environment) in such a way that the highly competent personnel can be used to the maximum benefit of the organization.
In particular, the Parent Company has conducted a detailed codification of the procedures for the management of human resources (hiring, remuneration, etc) as well as a profiling of the company functions with the identification of the responsibilities and skills that are necessary. On the basis of this profiling ad hoc training programs are scheduled in order to meet the training requirements of each individual.
As of December 31st 2017 there were 1.212 people employed by the Group, an increase of 11% compared to the previous year (1.093 people on December 31st 2016). Most of the employees are in Italy (47% with 572 employees), while the remaining portion are in European countries (France and Germany, classified as "the rest of Europe") and countries outside of Europe (China, Japan and Brazil, classified as "the rest of the world").
The personnel of the Group consists mainly of young people, and is concentrated in the age group between 30 and 50 years old (62%), followed by 26% employees under 30 old and only 12% over 50 years old. Most of the employees (68%) have permanent contracts, while 32% have fixed term contracts, which confirms the policy of the Group to create strong long-lasting professional relationships.
The Group is committed to establishing a dialogue with its employees and, when they are present, with the representatives of the labor unions, for the purpose of reconciling the needs of its people with the requirements for growth. This commitment is represented by the different categories of contracts: National contracts and those for a specific sector, collective and/or company contracts, as well as contracts that are stipulated with individuals.
In particular, in Italy the National Collective Labor Contract is applied (employees are covered 100% by the collective contracting); in Germany workers sign a collective agreement on an annual basis (82% of the workers are covered by the collective contracting; the others are selling staff which have signed a different individual contract), in France the Convention Collective IDCC n°1982 is applied to all workers; in Brazil a collective negotiation is conducted annually; in China and in Japan the local legislation is followed. In Japan, moreover, the management holds a monthly meeting with its employees to discuss relevant issues. At the Group level, it should be noted that 58% of the employees are covered by agreements stipulated on the basis of collective bargaining.
The management of human resources in the El.En. Group is aimed at integration and respect of diversity, the prevention of any discrimination which may be based on nationality, sexual orientation, age, political or religious opinions and all other characteristics that are not related to work. The activity of the Group is prevalently manufacturing; in any case, equal opportunity is offered to employees of both sexes: as of December 2017 there were 291 female employees, representing 24% of the total number of employees.
The Group promotes and facilitates initiatives to favor the balance between work and family life and to this aim has also introduced part time contracts.
Our commitment aims at guaranteeing a constructive and dynamic working environment which sustains the diversity of people and talents, respects all opinions and promotes equal opportunity on the basis on the principles of impartiality.
The Group supports and respects the rights of the individual in conformity with the Universal Declaration of Human Rights promulgated by the United Nations Organization and is committed to avoiding any form of discrimination. This commitment is applied to all aspects of employment including hiring, training, work assignments, promotions, transfers and termination.
This commitment is also intended to safeguard the moral and physical integrity of their personnel, by guaranteeing a working environment that respects the dignity of the individual in conformity with present legislation regarding health and safety in the workplace.
We have always considered training fundamental since it is necessary for the growth of the personnel and the development of the skills which are the key to the success of the company. We promote a continual training with courses dedicated not only to up-dating but also to specific topics for the purpose of improving the knowledge and skills of each resource in the organization.
In 2017 a total of 20.680 hours were dedicated to training activities, with an average hours per capita of about 17 hours.
With a specific focus on the Italian companies, the types of training and refresher courses that the Group offers are as follows:
Linguistic training, i.e. improvement of the linguistic skills of the resource involved;
Training in information systems and on the acquisition of IT skills (i.e. the acquisition of new types of software);
Although at this time in the Group there is no specific training involving human rights, the Group is committed to the spread and application of the Ethics Code, which contains the principles of legality, loyalty, correctness, transparency and professionalism to which every employee of the Group must adhere. Moreover, the Group has committed to provide a specific training in this area, in particular in those countries where the legislation is not as restrictive as in Italy.
We are committed to guaranteeing an healthy and safe workplace in compliance with all regulations that protect the safety of the workers and the environment.
Beside the measures intended to prevent injury to people, our objective is to spread a "culture of safety "by developing in people the awareness of the risks connected with their work and by promoting responsible behavior on the part of all employees.
We wish to protect our people by constantly looking for the necessary synergy not only within the Group but also with the suppliers and clients involved in the activities. For this reason we continually conduct analysis of risks and of critical points in the processes and the resources that must be protected and we adopt the best technologies available.
In order to guarantee complete knowledge and continued up-dating, many companies of the Group are committed to the spread of information, through internal communications and training courses, on the existing procedures on the basis of which decisions are made concerning health and safety in the workplace.
Some of the Italian companies of the Group dealt with the topic of health and safety also as part of the Organizational Model according to D.lgs 231/2001. The guiding principle is that the safety policy should be raised to the level of company value, like all the other values which characterize the company strategy. Just as we use organizational systems for managing economic resources, in the same way, safety must represent an essential value, which must constantly be pursued and implemented, with the help of an organizational system which can identify the instruments, the responsibilities and the motivation needed to express and transform the commitment of the top management on this topic.
From this principle the following will be derived: the commitment to respect the regulations regarding health and safety and the Organizational Model for the purpose of reducing the number of accidents at work to zero; the recognition that the responsibility of the safety management concerns the entire company, from the employer to each individual employee, according to their position and attributes; the commitment to assign adequate human and financial resources to the implementation of the "accident reduction to zero" objective and to that for the constant improvement of working conditions; the commitment to see that workers are adequately informed and trained about the risk connected with the work.
In conformity with the Organizational Model the following measures are planned: the identification and assignment among the company functions of the various responsibilities connected with the issue of health and safety, the mapping and evaluation of the risks, the instituting of training courses.
In 2017 we registered a total of 37 accidents in the Group, 8 of which were on the way to or from work. The accidents, divided by geographic area, are show on the chart below:
The welfare of its people is a key factor in the success of a company. In fact, technical skills are not enough to guarantee a good result but the company must offer its employees an environment that is stimulating for their potential and skills. To this aim, during this year, the Parent Company has invested resources to make the shared spaces and the working environment more attractive and comfortable.
Moreover, since 2014 the Parent Company and its subsidiary Cutlite Penta S.r.l., renamed Ot-las S.r.l. at the end of the year adhered to the Cassa Sanitaria Integrativa, a health insurance plan for all of the employees, by paying an annual fee for each worker;
this made it possible for all of the personnel to gain access to better and less expensive health care, according to the modalities stated in the insurance policy that they signed.
In 2017, the metalworking companies of the Group with headquarters in Calenzano, in compliance with the CCNL in force, paid part of the salaries in flexible benefits. The companies used a specific platform that made it possible for each worker to choose the welfare service that best satisfied his/her interests and needs, like expenses for in-home assistance or health services, re-imbursement for school expenses, supplementary social security, training courses, recreational goods, goods in kind and collective transportation services. The purpose of these benefits is to assist workers in paying for their own needs and those of their families.
The Group companies that are located in Calenzano have always offered a free canteen service for all their employees; the subsidiary Quanta System S.p.A. has set up a gym inside its buildings that is available to all the employees who wish to use it.
The Group considers that communication with its people is fundamental for the purpose of sarin the objectives that have been reached and company values; for this reason, in January 2017 the Parent Company El.En. S.p.A., set up a company e-mail address directed to all the employees and they also attached a post box at the main entrance of the company to receive communications (including anonymous ones) sent to the management.
In 2017, at the Headquarters in Calenzano, we also held our first Open Day, an event that was open to the families of all the employees and collaborators. We showed our working environment to the families and their children in a fun and playful way and explained what we do by giving a tour of the company and showing where we work: everyone had fun with the many attractions and activities that had been specially created for the event.
The period of notice provided to employees prior the implementation of significant organizational changes in the Italian companies of the Group is regulated by the CCNL and may vary from a minimum of 7 days to a maximum of 120 days depending on the type CCNL being applied, on the professional category of the employee and seniority; for other companies in the Group, for example, those in China and Japan, the national laws and practice require a notice of 30 days minimum; in Germany the period of notice is stated in the contract and may vary from one to three months.
For further information on occupational health and safety data refer to the section titled "Performance indicators" in this document.
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Added value distributed to stakeholders
The use of medical lasers and our continual dedication to research and development for new applications generate a series of social impacts that translate into benefits that involve not only the endusers but the entire local community. In particular, with our laser systems for medical applications we provide tools and solutions that improve the quality of life of the patient, to the extent that they contribute to the reduction of health problems, rather than physical or aesthetic, in addition to those of a psychological nature associated with them.
The list below shows the main uses of our medical lasers and the benefits they offer to the patients:
Besides these, the devices that have been conceived and developed by the companies of the Group for minimally invasive surgery have determined an improvement in the quality of life in terms of the recovery of healthy tissues, a reduced risk due to the decrease or elimination of local anesthesia and reduction of post-operative recovery time.
The removal of skin blemishes (including hirsutism, angioma, acne, rosacea, large scars, etc…) using medical lasers has made it possible for individuals, both children and adults, both in the family and in society, to act with acceptance and dignity with other members of the community.
The quality of life is also influenced by the image that one has of oneself. In fact, there is a continued increase in the demand for medical and aesthetic treatments by a population that increasingly wishes to improve their appearance because the personal psychological equilibrium can be obtained by reducing even minor blemishes and physiological disturbances.
In the past few years the Group has conducted an intense activity of research for the development of equipment for aesthetic medicine to make the face appear more youthful by treating wrinkles and discolorations in order to improve the cutaneous base or to tone up the skin, rather than for body shaping or hair removal.
In conclusion, the indirect benefits of industrial laser systems can be summarized as follows:
Paolo Salvadeo, General Director of the El.En. Group has stated:
"El.En. wishes to be confirmed not only as a valid point of reference for its shareholders and stakeholders, but also as a pillar of the community. At El.En. we are committed every day to make sure that our work produces a positive impact on the health of people. Our social strategy is to place our skills, knowledge and instruments at the disposal of everyone with the objective of promoting access to the best cures and health care for the most fragile and disadvantaged persons all over the world. At the same time we are working to increase our scientific knowledge. We are working for science and for a healthier world.".
The economic value generated and distributed represents the wealth produced by the El.En. Group which, in different ways, is distributed to the stakeholders.
The data related to the production and distribution of the added value, through the reclassification of the financial statement, give us a general indication of the manner in which the Group has created wealth for its stakeholders, and highlights the economic effects produced by the management on the main categories of stakeholders.
In 2017 the global net added value distributed by the Group was 300,4 million Euros.
Most of this amount, 75,4% is represented by the "remuneration of suppliers" and consists mainly of the costs for raw material and services. In second place, the "remuneration of personnel" (18,0%) represents the salaries, severance indemnities and social security charges. The "remuneration of shareholders" consists of profits of minority interest and the net income distributed, the "remuneration to the public administration" consists of the income taxes and "remuneration of the financial system".
| Chart for determining the economic value generated and distributed | |||
|---|---|---|---|
| Euro | 2017 | ||
| Economic value generated by the Group | 313.989.972 | ||
| Revenues | 306.461.017 | ||
| Change in inventories | 5.871.135 | ||
| Other revenues and income | 4.264.318 | ||
| Financial charges/income | (2.739.870) | ||
| Share of profit of associated companies | (430.284) | ||
| Other non-operating income (charges) | 563.655 | ||
| Economic value distributed by the Group | 300.398.768 | ||
| Remuneration of personnel | 54.090.983 | ||
| Staff cost | 54.090.983 | ||
| Remuneration of suppliers | 226.380.489 | ||
| Total purchase | 166.694.443 | ||
| Other direct services | 22.618.067 | ||
| Other operationg services and charges | 37.067.979 | ||
| Remuneration of the pubblic Administration | 6.807.349 | ||
| Income taxes | 6.807.349 | ||
| Remuneration of shareholders | 12.494.816 | ||
| Net profit of minority interest | 4.775.827 | ||
| Distribution of net income | 7.718.989 | ||
| Remuneration of financial system | 625.132 | ||
| Financial charges | 625.132 | ||
| Economic value retained by the Group | 13.591.203 | ||
| Net income retained for reserves | 7.915.304 | ||
| Depreciation, amortization and other accrual | 5.675.899 |
The distribution of net income corresponds to the destination of the net income to dividends that the Board of Directors of El.En. S.p.A. proposes to the Shareholders' Assembly.
One of our main points of pride at the El.En. Group is represented by the little sector of restoration; the sensitivity directed towards the conservation of the world's artistic heritage has grown over the years in the Group and has inspired research projects intended to provide advanced technologies for the conservation or restoration of some of the world's greatest works of art. The Group has continued to conduct experiments on new technologies which might offer increasingly effective processes that respect the integrity of artistic works.
In fact, lasers offer a solution that is effective, reliable and safe for the conservation of the world's artistic heritage and give new life to works of art that have left an indelible mark on the history of humanity, while respect their precious surface and original texture because lasers make it possible to remove the patina that has formed over time with a non-invasive procedure which respects the original structure of the work of art and restores the work to its original appearance so that it can be admired by the public.
Roman frescoes, Egyptian statues, pre-Columbian textiles and remains of Renaissance bronzes have been returned to their original splendor and displayed to the public. In fact, lasers can be used for cleaning works of art and architectural elements in stone that have been degraded by incrustations, in conservation procedures of metal artifacts of artistic and archeological interest, like bronze and gilded surfaces, in the clearing of both antique and modern silver artifacts and even for cleaning wooden objects.
"The beauty of works of art is the inheritance we leave to the future generations and which we have the duty of protecting for them. For this reason we are proud to be the first company in the world to present lasers specifically designed for the restoration of art works using the same tools used in medicine and surgery. Whether we are talking about the restoration of works of art or medicine, we can say that we are responding to the same principle: we are taking care of people, our masterpieces».
Below is a list of some of the most important works of art that have been treated with our lasers:
In 2017 a laser was made available for the clearing of the frescoes in the Domus Aurea in Roma, bringing them back to their original state so that they can now be admired by the many tourists who visit the archeological site.
Over the years the El.En. Group has also made many donations of its equipment for restorations. One of the most important of these was the donation to the Vatican in 2015 of laser equipment for the restoration of marble sculptures, busts, fountains and statues as well as some paintings.
This year we donated to the Paul Getty Museum of Los Angeles a laser for the restoration of the masterpieces from Palmyra in memory of the Syrian archeologist Khaled Al Asaad. Also in 2017 the Group donated a laser to the Onlus volunteer association "Gli Angeli del Bello" of Florence, to improve the appearance of the urban area by removing graffiti and relaunch the downtown area by reacting against the daily acts of vandalism. The foundation named "Angeli del Bello" pursues the objective of putting volunteers in touch, building a network of relations and collaborating with other associations and organizations operating in the area. The activities of urban volunteerism they conduct are related to the care and decorum of public spaces like gardens, monumental parks, roads and plazas. In particular they focus on the schools for the purpose of promoting the education of the young towards a sense of civic responsibility and respect for the city staring with the young and very young.
Moreover, the Group has always been involved in cultural, social and educational initiatives in favor of the local communities with an aim to strengthening their relations with the territory in which it operates and with the people involved directly or indirectly in the activities of the Group. The basic idea is to promote a mutual and positive exchange of ideas between the Group and the local community which will benefit both parties involved in the projects and activities that are developed.
In particular the Group is committed to the promotion of the following activities:
The El.En. Group among other things sponsored the exhibition "Firenze 1966 - 2016. La bellezza salvata", curated by Cristina Acidini and Elena Capretti, in the Museo Mediceo di Palazzo Medici Riccardi, which was held from December 2016 to March 2017.
The Parent Company El.En. S.p.A. is a member of the Association "Partners Palazzo Strozzi", member of "Assorestauro", the Italian association for architectural, artistic and urban restoration and sponsored the 11th edition of the International conference of LACONA (Laser in the Conservation of Artworks) and the last 6 editions of the International Conference of APLAR (Laser applications in restoration).
For the Group, the environment represents a primary resource which must be safeguarded. For this purpose the activities are scheduled trying to find a balance between economic objectives and indispensable environmental needs, respecting the protection of the rights of future generations and aligned with the principle of sustainable development. The Group is committed to the monitoring of the environmental impact generated by their activities as well as the prevention of potential risks, by implementing corrective and mitigating actions in respect of the laws now in force and the relative best practice.
The Group is committed to the reduction of its energy consumption by taking appropriate measures like the replacement of neon ceiling lights with LED lights and the promotion of behaviors and habits which favor the saving of energy and promote the development of an environmental conscience in people.
The energy consumed by the Group consists mainly of natural gas, diesel and LPG used as fuel for heating buildings and factories, and electric energy purchased directly from the public grid and used for heating, air conditioning and for manufacturing processes.
In particular, in 2017, we consumed 327.731 m3 of natural gas and 5.350 liters of LPG. The total consumption of electric energy was 3.725.870 kWh. The overall consumption of energy therefore was 25.054 GJ. Most of the consumption was due to the use of electricity (about 54%); 46% was due to consumption of natural gas for heating buildings. During 2017 moreover, the Group did not purchase energy from renewable sources with guarantees of origin.
Quanta System S.p.A. installed a cogeneration plant that went into operation in early 2017 and it allowed to self-produce 37% of the energy consumed and to feed into the public grid 10% of the mentioned amount.
The direct and indirect CO2 emissions associated with the main consumption of the Group can be divided into two categories:
In particular, for the calculation of the CO2 equivalent emissions, in compliance with the GRI Sustainability Reporting Standards, we used both the "Locationbased method" and the "Market-based method" in order to calculate the Scope 2 emissions. The Location-based method uses the average of emission factors related to the generation of energy at regional, subnational or national level. The Marketbased method is based on the CO2 emissions of the energy suppliers from which the company purchases, by contract, electric energy or the emission of the reference market.
In line with the commitment to reduce their energy consumption, the Group is working also to record a decrease of the emissions directly or indirectly generated by its own activity. In 2017, the majority of CO2 emissions was due to the consumption of electric energy purchased, while 28% was due to the use of fuel.
Concerning the indirect emissions calculated according to the market-based method, CO2 eq emissions are in line with the amount reported above with a total amount of 2.616 tons of direct and indirect CO2 eq emissions.
The actions of the Group toward the respect and optimization of environmental resources are demonstrated also by the efficient use of water resources with the objective of using the minimum amount necessary and reduce waste at a time in which water represents a resource that is both valuable and at risk for the future generations.
The Group is committed to promoting good habits in relation to the saving of water by offering practical advice to its employees and implementing improvements like shutting off the faucet when it is not in use and avoiding the phenomenon of "running water".
Water is used mainly in the bathrooms, in the company canteen and for production processes. In this latter case, water is mostly used in closed circuits so that it can be recovered and is not dispersed into the environment.
In 2017 water consumption was 27.524 m3 and came almost exclusively from the municipal aqueduct.
Data on human resources
Environmental data
| Total number of employees by country, Gender and type of contract | ||||||
|---|---|---|---|---|---|---|
| December 31st, 2016 | December 31st, 2017 | |||||
| Men | Women | Total | Men | Women | Total | |
| ITALY | 387 | 124 | 511 | 428 | 144 | 572 |
| Permanent contract | 362 | 115 | 477 | 390 | 127 | 517 |
| Fixed term contract | 25 | 9 | 34 | 38 | 17 | 55 |
| REST OF EUROPE | 77 | 30 | 107 | 88 | 35 | 123 |
| Permanent contract | 76 | 29 | 105 | 87 | 34 | 121 |
| Fixed term contract | 1 | 1 | 2 | 1 | 1 | 2 |
| REST OF WORLD | 364 | 111 | 475 | 405 | 112 | 517 |
| Permanent contract | 140 | 62 | 202 | 128 | 55 | 183 |
| Fixed term contract | 224 | 49 | 273 | 277 | 57 | 334 |
| TOTAL FOR THE GROUP |
828 | 265 | 1.093 | 921 | 291 | 1.212 |
| Permanent contract | 578 | 206 | 784 | 605 | 216 | 821 |
| Fixed term contract | 250 | 59 | 309 | 316 | 75 | 391 |
| Total number of employees part time/full time by gender | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| December 31st, 2016 | December 31st, 2017 | ||||||||
| Men | Women | Total | Men | Women | Total | ||||
| ITALY | 387 | 124 | 511 | 428 | 144 | 572 | |||
| Full time | 385 | 101 | 486 | 421 | 123 | 544 | |||
| Part time | 2 | 23 | 25 | 7 | 21 | 28 | |||
| REST OF EUROPE | 77 | 30 | 107 | 88 | 35 | 123 | |||
| Full time | 75 | 27 | 102 | 87 | 30 | 117 | |||
| Part time | 2 | 3 | 5 | 1 | 5 | 6 | |||
| REST OF WORLD | 364 | 111 | 475 | 405 | 112 | 517 | |||
| Full time | 362 | 103 | 465 | 404 | 105 | 509 | |||
| Part time | 2 | 8 | 10 | 1 | 7 | 8 | |||
| TOTAL FOR THE GROUP |
828 | 265 | 1.093 | 921 | 291 | 1.212 | |||
| Full time | 822 | 231 | 1.053 | 912 | 258 | 1.170 | |||
| Part time | 6 | 34 | 40 | 9 | 33 | 42 |
| Total number of employees divided by employee category and gender | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| December 31st, 2016 | December 31st, 2017 | |||||||||
| Men | Women | Total | Men | Women | Total | |||||
| ITALY | 387 | 124 | 511 | 428 | 144 | 572 | ||||
| Executives | 27 | 1 | 28 | 30 | - | 30 | ||||
| Middle managers | 30 | 6 | 36 | 29 | 7 | 36 | ||||
| White collar employees | 182 | 115 | 297 | 204 | 134 | 338 | ||||
| Blue collar employees | 148 | 2 | 150 | 165 | 3 | 168 | ||||
| REST OF EUROPE | 77 | 30 | 107 | 88 | 35 | 123 | ||||
| Executives | - | - | - | - | - | - | ||||
| Middle managers | 12 | 1 | 13 | 12 | 2 | 14 | ||||
| White collar employees | 65 | 29 | 94 | 76 | 33 | 109 | ||||
| Blue collar employees | - | - | - | - | - | - | ||||
| REST OF WORLD | 364 | 111 | 475 | 405 | 112 | 517 | ||||
| Executives | 9 | 3 | 12 | 13 | 3 | 16 | ||||
| Middle managers | 26 | 11 | 37 | 29 | 12 | 41 | ||||
| White collar employees | 292 | 93 | 385 | 268 | 89 | 357 | ||||
| Blue collar employees | 37 | 4 | 41 | 95 | 8 | 103 | ||||
| TOTAL FOR THE GROUP |
828 | 265 | 1.093 | 921 | 291 | 1.212 | ||||
| Executives | 36 | 4 | 40 | 43 | 3 | 46 | ||||
| Middle managers | 68 | 18 | 86 | 70 | 21 | 91 | ||||
| White collar employees | 539 | 237 | 776 | 548 | 256 | 804 | ||||
| Blue collar employees | 185 | 6 | 191 | 260 | 11 | 271 |
It should be noted that the division of the employees by employee category for Penta Chutian Laser (Wuhan) Co. Ltd in 2017, has been up-dated for the purpose of better aligning it with the data of the Group; in particular, some of the employees earlier classified as as white-collar employees have now been placed in the category of blue collar employees.
| Percentage of employees by employee category and gender | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| CAT | December 31st, 2016 | December 31st, 2017 | ||||||||
| M | M | W | W | Tot | M | M | W | W | Tot | |
| Executives | 36 | 90% | 4 | 10% | 40 | 43 | 93% | 3 | 7% | 46 |
| Middle managers |
68 | 79% | 18 | 21% | 86 | 70 | 77% | 21 | 23% | 91 |
| White collar employees |
539 | 69% | 237 | 31% | 776 | 548 | 68% | 256 | 32% | 804 |
| Blue collar employees |
185 | 97% | 6 | 3% | 191 | 260 | 96% | 11 | 4% | 271 |
| Percentage of employees by employee category and age group | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| CAT | December 31st, 2016 | ||||||||||||
| <30 | <30 | 30-50 | 30-50 | >50 | >50 | Tot | |||||||
| Executives | - | 0% | 23 | 58% | 17 | 43% | 40 | ||||||
| Middle managers |
1 | 1% | 63 | 73% | 22 | 26% | 86 | ||||||
| White collar employees |
224 | 29% | 473 | 61% | 79 | 10% | 776 | ||||||
| Blue collar employees |
21 | 11% | 148 | 77% | 22 | 12% | 191 |
| Percentage of employees by employee category and gender | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| CAT | December 31st, 2017 | ||||||||||||
| <30 | <30 | 30-50 | 30-50 | >50 | >50 | Tot | |||||||
| Executives | - | 0% | 27 | 59% | 19 | 41% | 46 | ||||||
| Middle managers |
9 | 10% | 61 | 67% | 21 | 23% | 91 | ||||||
| White collar employees |
235 | 29% | 493 | 61% | 76 | 9% | 804 | ||||||
| Blue collar employees |
71 | 26% | 171 | 63% | 29 | 11% | 271 |
| Average hours of training per employee category and gender | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| December 31st, 2016 | ||||||||||
| Man n. hours | Average per capita |
Woman n. hours |
Average per capita |
total hours | average total per capita |
|||||
| TOTAL | 12.814 | 15 | 4.792 | 18 | 17.606 | 16 | ||||
| Executives | 677 | 19 | - | - | 677 | 17 | ||||
| Middle managers |
655 | 10 | 326 | 18 | 980 | 11 | ||||
| White collar employees |
6.441 | 12 | 4.467 | 19 | 10.908 | 14 | ||||
| Blue collar employees |
5.042 | 27 | - | - | 5.042 | 26 |
| Average hours of training per employee category and gender | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| December 31st, 2017 | ||||||||||
| Man n. hours | Average per capita |
Woman n. hours |
Average per capita |
total hours | average total per capita |
|||||
| TOTAL | 15.499 | 17 | 5.187 | 18 | 20.686 | 17 | ||||
| Executives | 851 | 20 | 12 | 4 | 863 | 19 | ||||
| Middle managers |
933 | 13 | 519 | 25 | 1.451 | 16 | ||||
| White collar employees |
8.501 | 16 | 4.602 | 18 | 13.103 | 16 | ||||
| Blue collar employees |
5.215 | 20 | 55 | 5 | 5.270 | 19 |
| Occupational health and safety data 2017 | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| ITALY | REST OF EUROPE |
REST OF WORLD |
GROUP | |||||||||
| M | W | Tot | M | W | Tot | M | W | Tot | M | W | Tot | |
| Injuries * | 12,0 | 2,0 | 14 | 11,0 | - | 11,0 | 12,0 | - | 12,0 | 35,0 | 2,0 | 37,0 |
| of which fatalities |
- | - | - | - | - | - | - | - | - | - | - | - |
| Lost day rate | 0,6 | 1,7 | 0,9 | 0,1 | 0,4 | 0,2 | 0,1 | - | 0,1 | 0,2 | 0,5 | 0,3 |
| Injury rate | 16,9 | 9,1 | 15,1 | 68,7 | - | 49,0 | 14,8 | - | 11,6 | 20,8 | 3,9 | 16,9 |
| Occupational disease rate |
- | - | - | - | - | - | - | - | - | - | - | - |
| Absentee rate | 2,1% | 2,0% | 2,1% | 4,1% | 3,4% | 3,9% | 0,1% | 0,1% | 0,1% | 1,4% | 1,4% | 1,4% |
*the data includes accidents occurred while travelling to and from work.
During the year, there were no cases of occupational diseases.
The Lost day rate has been calculated on the basis of the total number of working days that have been lost due to injuries and occupational diseases and the total number of hours scheduled to be worked by 1.000.
The injury rate has been calculated as the ratio between the total number of injuries and the total number of hours worked by 100.000.
The absentee rate has been calculated as the ratio between the total number of days of absence and the total number of days scheduled to be worked.
| ITALY | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| December 31st, 2016 | December 31st, 2017 | ||||||||||
| Type of fuel | Consumption [UoM] | GJ | Consumption [UoM] | GJ | |||||||
| Natural gas | m3 | 143.177 | 5.039 | m3 | 299.357 | 10.518 | |||||
| Diesel | l | 3.000 | 109 | l | - | - | |||||
| LPG | l | 3.470 | 82 | l | 5.350 | 126 | |||||
| Electrical energy |
kWh | 2.318.136 | 8.345 | kWh | 2.345.964 | 8.445 |
| REST OF EUROPE | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| December 31st, 2016 | December 31st, 2017 | |||||||||
| Type of fuel | Consumption [UoM] | GJ | Consumption [UoM] | GJ | ||||||
| Natural gas | m3 | 27.554 | 970 | m3 | 28.374 | 997 | ||||
| Diesel | l | - | - | l | - | - | ||||
| LPG | l | - | - | l | - | - | ||||
| Electrical energy |
kWh | 224.903 | 810 | kWh | 243.051 | 875 |
3 The subdivision by gender of the hours worked and scheduled to be worked related to the employees of Quanta System S.p.A. have been estimated on the basis of the percentage distribution of the workforce by gender. For the Chinese companies (Penta Laser Equipment Wenzhou Co Ldt and Penta-Chutlian Laser (Wuhuan) Co Ltd) the data for the number of hours scheduled to be worked have been estimated on the basis of the number of hours scheduled to be worked at the National level in China for the year involved, while the hours worked have been estimated taking into consideration the number of days of absence registered during the year.
4 The data related to Energy consumption, unless otherwise specified, have been registered using the invoices of the suppliers of the energy services. The data related to energy consumption of Penta-Chutlian Laser (Wuhuan) Co Ltd was estimated starting with the cost of electric energy and the ratio yuan/kWh applied in the invoice.
| REST OF WORLD | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| December 31st, 2016 | 31 dicembre 2017 | ||||||||
| Type of fuel | Consumption [UoM] | GJ | Consumption [UoM] | GJ | |||||
| Natural gas | m3 | - | - | m3 | - | - | |||
| Diesel | l | - | - | l | - | - | |||
| LPG | l | - | - | l | - | - | |||
| Electrical energy |
kWh | 824.054 | 2.967 | kWh | 1.136.855 | 4.093 |
| TOTAL OF THE GROUP | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| December 31st, 2016 | December 31st, 2017 | ||||||||
| Type of fuel | Consumption [UoM] | GJ | Consumption [UoM] | GJ | |||||
| Natural gas | m3 | 170.731 | 6.009 | m3 | 327.731 | 11.514 | |||
| Diesel | l | 3.000 | 109 | l | - | - | |||
| LPG | l | 3.470 | 82 | l | 5.350 | 126 | |||
| Electrical energy |
kWh | 3.367.093 | 12.122 | kWh | 3.725.870 | 13.413 |
The increase in energy consumption is due to various factors including the refurbishment work in the headquarters in Calenzano and at Penta Laser Equipment Wenzhou Co Ldt, which became officially productive in 2017, and the increase in production and employees at a Group level.
In order to calculate the energy consumption in GJ, we have used the conversion factors from the following sources:
| Energy Consumption of The Group | ||||||||
|---|---|---|---|---|---|---|---|---|
| Type of fuel | December 31st, 2016 | December 31st, 2017 | ||||||
| GJ | GJ | |||||||
| Non-renewable fuel for heating |
6.200 | 11.641 | ||||||
| Natural gas | 6.009 | 11.514 | ||||||
| Diesel | 109 | - | ||||||
| LPG | 82 | 126 | ||||||
| Electrical energy acquired |
12.122 | 13.701 | ||||||
| Electrical energy sold and delivered to the grid |
- | (288) | ||||||
| Total | 18.321 | 25.054 |
| December 31st, 2016 | December 31st, 2017 | ||||||
|---|---|---|---|---|---|---|---|
| EMISSIONS (Tons of CO2EQ) | |||||||
| Scope 1 | Scope 2 | Total | Scope 1 | Scope 2 | Total | ||
| Italy | 294 | 869 | 1.164 | 596 | 880 | 1.476 | |
| Rest of Europe | 54 | 107 | 161 | 56 | 115 | 170 | |
| Rest of World | - | 484 | 484 | - | 692 | 692 | |
| Total | 348 | 1.460 | 1.809 | 652 | 1.686 | 2.338 |
| December 31st, 2016 | December 31st, 2017 | |||||
|---|---|---|---|---|---|---|
| EMISSIONS (Tons of CO2EQ) | ||||||
| Scope 1 | Scope 2 | Total | Scope 1 | Scope 2 | Total | |
| Italy | 294 | 1.092 | 1.386 | 596 | 1.105 | 1.701 |
| Rest of Europe | 54 | 156 | 210 | 56 | 168 | 223 |
| Rest of World | - | 484 | 484 | - | 692 | 692 |
| Total | 348 | 1.732 | 2.080 | 652 | 1.964 | 2.616 |
The CO2 equivalent emissions reported in this document include only CO2 emissions and were calculated using the 100-year Global Warming Potential (GWP) of the IPCC (Intergovernmental Panel of Climate Change) of 1 for CO2 . In addition, the source of the applied emission factors are shown below:
For the calculation of the scope 1 emissions we have considered different emission factors on the basis of the type of fuel being used. The sources are listed below:
For the calculation of the Scope 2 emissions, we have used different factors based on the calculation method and the country they refer to. In particular:
| GROUP TOTAL | ||||
|---|---|---|---|---|
| December 31st, 2016 | December 31st, 2017 | |||
| Source of water | Consumption [m3 ] |
Consumption [m3 ] |
||
| Aqueduct | 20.755 | 27.463 | ||
| Rain water | 60 | 60 | ||
| Other | 1 | 1 | ||
| Total | 20.816 | 27.524 |
The same considerations expressed for energy consumption apply to the increase in the consumption of water. During the year at Calenzano there was a loss of water due to leakage which also increased the consumption for this period.
5 For the calculation of the water consumption we have used estimates when the exact data were not available: in particular for Quanta System S.p.A., Elen S.p.A. and Otlas S.r.l. part of the consumption was estimated on the basis of daily consumption as recorded b the water supplier. For the Chinese company Penta-Chutlian Laser (Wuhuan) Co Ltd the data were estimated on the basis of the costs in yuan for water consumption and the ratio yuan/kWh applied in the invoice.
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The chart below shows the information of the Group based on GRI Standards with reference to the materiality of El.En.. For all of the information supplied we have given the relative page number in this document.
| Universal Standards | ||
|---|---|---|
| GRI Standard | Page | Description |
| GRI 102: General Disclosures (2016) | ||
| Organizational profile | ||
| 102-1 | 22 | Name of the organization. |
| 102-2 | 22-23, 34-35 | Activities, brands, products and services. |
| 102-3 | 23 | Location of headquaters |
| 102-4 | 23 | Number of countries where the organization operates, and the names of countries where it has significant operations and/or that are relevant to the topics covered in the report. |
| 102-5 | 23, 26 | Ownership and legal form |
| 102-6 | 23, 34-35 | Markets served |
| 102-7 | 22-23, 54 | Scale of the organization |
| 102-8 | 68 | Total number of employees by employment contract (permanent and temporary), by gender |
| 102-9 | 34-36 | Supply chain |
| 102-10 | 7 | Significant changes to the organization's size, structure, ownership, or supply chain |
| 102-11 | 27-28, 40-41 | Precautionary Principle or approach |
| 102-12 | 30 | A list of externally-developed economic, environmental and social charters, principles, or other initiatives to which the organization subscribes, or which it endorses. |
| 102-13 | 14-15 | Membership of associations |
| Universal Standards | |||||
|---|---|---|---|---|---|
| GRI Standard | Page | Description | |||
| GRI 102: General Disclosures (2016) | |||||
| Strategy | |||||
| 102-14 | 5 | Statement from senior decision-maker. | |||
| Ethics and integrity | |||||
| 102-16 | 22, 29-31 | Values, principles, standards, and norms of behavior. |
|||
| Governance | |||||
| 102-18 | 26-27 | Governance structure | |||
| Stakeholder Engagement | |||||
| 102-40 | 12 | List of the stakeholders groups engaged by the organization. |
|||
| 102-41 | 46 | Percentage of total employees covered by collective bargaining agreements. |
|||
| 102-42 | 12 | The basis for identifying and selecting stakeholders with whom to engage. |
|||
| 102-43 | 13-14 | The organization's approach to stakeholder engagement, including frequency of engagement by type and by stakeholder group, and an indication of whether any of the engagement was undertaken specifically as part of the report preparation process. |
|||
| 102-44 | 13-14, 16-18 During 2017 the organization has not carried out any specific direct surveys on topics of interest for stakeholders. |
Key topics and concerns that have been raised through stakeholder engagement, including: how the organization has responded to those key topics and concerns, including through its reporting; the stakeholder groups that raised each of the key topics and concerns. |
|||
| 102-45 | 7-8, 23 | Entities included in the consolidated financial statements. |
|||
| 102-46 | 7-8, 16-18 | Defining report content and topic Boundaries. |
|||
| 102-47 | 16-18 | A list of the material topics identified in the process for defining report content. |
|||
| 102-48 | This is the first NFS issued by the El.En. Group. |
The effect of any restatements of information given in previous reports, and the reasons for such restatements. |
|||
| 102-49 | This is the first NFS issued by the El.En. Group. |
Significant changes from previous reporting periods in the list of material topics and topic Boundaries. |
| Universal Standards | |||||
|---|---|---|---|---|---|
| GRI Standard | Page | Description | |||
| GRI 102: General Disclosures (2016) | |||||
| 102-50 | 7 | Reporting period | |||
| 102-51 | This is the first NFS issued by the El.En. Group. |
If applicable, the date of the most recent previous report |
|||
| 102-52 | 7 | Reporting cycle | |||
| 102-53 | 93 | Contact point for questions regarding the report |
|||
| 102-54 | 7 | Claims of reporting in accordance with the GRI Standards |
|||
| 102-55 | 78-88 | GRI Content Index | |||
| 102-56 | 89-91 | External assurance | |||
| GRI Standard | Page | Omissions | Description | ||
| Material Aspects | |||||
| ECONOMIC | |||||
| Economic Performance | |||||
| GRI 103: Management approach (2016) | |||||
| 103-1 | 17-18, 54-55 | Explanation of the material topic and its Boundary |
|||
| 103-2 | 34-35, 54-55 | The management approach and its components |
|||
| 103-3 | 54-55 | Evaluation of the management approach |
|||
| GRI 201: Economic performance (2016) | |||||
| 201-1 | 54-55 | Direct economic value generated and distributed. |
|||
| Anti-corruption | |||||
| GRI 103: Management approach (2016) | |||||
| 103-1 | 17-18, 27-31 | Explanation of the material topic and its Boundary |
|||
| 103-2 | 27-31 | The management approach and its components |
| GRI Standard | Page | Omissions | Description |
|---|---|---|---|
| 103-3 | 27-31 | Evaluation of the management approach |
|
| GRI 205: Anti-corruption (2016) | |||
| 205-3 | No corruption cases confirmed during 2017 |
Confirmed incidents of corruption and actions taken |
ENVIRONMENTAL
Energy
| 103-1 | 17-18, 64-65 | Explanation of the material topic and its Boundary |
|---|---|---|
| 103-2 | 8, 64-65 | The management approach and its components |
| 103-3 | 64-65 | Evaluation of the management approach |
| organization | ||
|---|---|---|
| 302-1 | 64, 72-73 | Energy consumption within the |
Water
| 103-1 | 17-18, 64-65 | Explanation of the material topic and its Boundary |
|---|---|---|
| 103-2 | 8, 64-65 | The management approach and its components |
| 103-3 | 64-65 | Evaluation of the management approach |
| 303-1 | 65, 75 | Water withdrawal by source |
|---|---|---|
| GRI Standard | Page | Omissions | Description |
|---|---|---|---|
| Emissions |
| 103-1 | 17-18, 64-65 | Explanation of the material topic and its Boundary |
|---|---|---|
| 103-2 | 8, 64-65 | The management approach and its components |
| 103-3 | 64-65 | Evaluation of the management approach |
| 305-1 | 65, 74 | Direct (Scope 1) GHG emissions |
|---|---|---|
| 305-2 | 65, 74 | Energy indirect (Scope 2) GHG emissions |
| 103-1 | 17-18, 64 | Explanation of the material topic and its Boundary |
|---|---|---|
| 103-2 | 8, 28-30, 64 | The management approach and its components |
| 103-3 | 28-30, 64 | Evaluation of the management approach |
| 307-1 | The organization has not identified any non-compliance with environmental laws and/or regulations during 2017 |
Non-compliance with environmental laws and regulations |
|
|---|---|---|---|
| ------- | ------------------------------------------------------------------------------------------------------------------------ | -- | -------------------------------------------------------------- |
| 103-1 | 17-18, 44-48 | Explanation of the material topic and its Boundary |
|---|---|---|
| 103-2 | 44-48 | The management approach and its components |
| 103-3 | 44-48 | Evaluation of the management approach |
| GRI Standard | Page | Omissions | Description | |
|---|---|---|---|---|
| GRI 402: Labor/management relations (2016) | ||||
| 402-1 | 48 | Minimum notice periods regarding operational changes |
||
| Occupational health and safety | ||||
| GRI 103: Management Approach (2016) | ||||
| 103-1 | 17-18, 47 | Explanation of the material topic and its Boundary |
||
| 103-2 | 47 | The management approach and its components |
||
| 103-3 | 47 | Evaluation of the management approach |
||
| GRI 403-2: Occupational health and safety (2016) | ||||
| 403-2 | 47, 71-72 | Types of injury, injury rate (IR), occupational disease rate (ODR), lost day rate (LDR), absentee rate (AR), and work-related fatalities, for all employees, with a breakdown by region and by gender. |
||
| Training and education | ||||
| GRI 103: Management Approach (2016) | ||||
| 103-1 | 17-18, 46-47 | Explanation of the material topic and its Boundary |
||
| 103-2 | 46-47 | The management approach and its components |
||
| 103-3 | 46-47 | Evaluation of the management approach |
||
| GRI 404: Training and education (2016) | ||||
| 404-1 | 71 | Average hours of training that the organization's employees have undertakenduring the reporting period, by gender and employee category |
||
| Diversity and equal opportunity | ||||
| GRI 103: Management Approach (2016) | ||||
| 103-1 | 17-18, 46 | Explanation of the material topic and its Boundary |
||
| 103-2 | 46 | The management approach and its components |
| GRI Standard | Page | Omissions | Description |
|---|---|---|---|
| 103-3 | 46 | Evaluation of the management approach |
|
| GRI 405: Diversity and equal opportunity (2016) | |||
| 405-1 | 26, 46, 69-70 | Diversity of governance bodies and employees |
|
| Non-discrimination | |||
| GRI 103: Management Approach (2016) | |||
| 103-1 | 17-18, 46 | Explanation of the material topic and its Boundary |
|
| 103-2 | 28-30, 46 | The management approach and its components |
|
| 103-3 | 28-30, 46 | Evaluation of the management approach |
|
| GRI 406: Non- discrimination (2016) | |||
| 406-1 | No discrimination incidents occurred during 2017 |
Incidents of discrimination and corrective actions taken |
|
| Freedom of association and collective contracting | |||
| GRI 103: Management Approach (2016) | |||
| 103-1 | 8, 17-18, 44 | Explanation of the material topic and its Boundary |
|
| 103-2 | 8, 28-30, 47-48 | The management approach and its components |
|
| 103-3 | 8, 28-30, 47-48 | Evaluation of the management approach |
|
| GRI 407: Freedom of association and collective contracting (2016) | |||
| 407-1 | 8, 28, 46 | Operations and suppliers in which the right to freedom of association and collective bargaining may be at risk |
| GRI Standard | Page | Omissions | Description | ||
|---|---|---|---|---|---|
| Child labor | |||||
| GRI 103: Management Approach (2016) | |||||
| 103-1 | 8, 17-18, 28-30 | Explanation of the material topic and its Boundary |
|||
| 103-2 | 8, 28-30 | The management approach and its components |
|||
| 103-3 | 8, 28-30 | Evaluation of the management approach |
|||
| GRI 408: Child labor (2016) | |||||
| 408-1 | 8, 28 | Operations and suppliers at significant risk for incidents of child labor |
|||
| Forced or compulsory labor | |||||
| GRI 103: Management Approach (2016) | |||||
| 103-1 | 8, 17-18, 28-30 | Explanation of the material topic and its Boundary |
|||
| 103-2 | 8, 28-30 | The management approach and its components |
|||
| 103-3 | 8, 28-30 | Evaluation of the management approach |
|||
| GRI 409: Forced or compulsory labor (2016) | |||||
| 409-1 | 8, 28 | Operations and suppliers at significant risk for incidents of forced or compulsory labor |
|||
| Human rights assessment | |||||
| GRI 103: Management Approach (2016) | |||||
| 103-1 | 8, 17-18, 28-30 | Explanation of the material topic and its Boundary |
|||
| 103-2 | 8, 28-30 | The management approach and its components |
|||
| 103-3 | 8, 28-30 | Evaluation of the management approach |
|||
| GRI 412: human rights assessment (2016) | |||||
| 412-2 | 8, 47 | Employee training on human rights policies or procedures |
| GRI Standard | Page | Omissions | Description | |
|---|---|---|---|---|
| Customer health and safety |
| 103-1 | 17-18, 40-41 | Explanation of the material topic and its Boundary |
|---|---|---|
| 103-2 | 40-41 | The management approach and its components |
| 103-3 | 40-41 | Evaluation of the management approach |
| 416-2 | the organization has not identified any non-compliance with regulations and/or voluntary codes during 2017 |
Incidents of non-compliance concerning the health and safety impacts of products and services |
|---|---|---|
| 103-1 | 17-18, 28-30 | Explanation of the material topic and its Boundary |
|---|---|---|
| 103-2 | 28-30 | The management approach and its components |
| 103-3 | 28-30 | Evaluation of the management approach |
| 419-1 | the organization has not identified any non-compliance with laws and/or regulations during 2017 |
Non-compliance with laws and regulations in the social and economic area |
|
|---|---|---|---|
| ------- | ---------------------------------------------------------------------------------------------------------- | -- | -------------------------------------------------------------------------------- |
| GRI Standard | Page | Omissions | Description | ||
|---|---|---|---|---|---|
| Research, development and innovation |
| 103-1 | 17-18, 52-53, 58-61 | Explanation of the material topic and its Boundary |
|---|---|---|
| 103-2 | 52-53, 58-61 | The management approach and its components |
| 103-3 | 52-53, 58-61 | Evaluation of the management approach |
Risk management
| 103-1 | 17-18, 27 | Explanation of the material topic and its Boundary |
|---|---|---|
| 103-2 | 27-28 | The management approach and its components |
| 103-3 | 27-28 | Evaluation of the management approach |
| 103-1 | 17-18, 36-39 | Explanation of the material topic and its Boundary |
|---|---|---|
| 103-2 | 36-39 | The management approach and its components |
| 103-3 | 36-39 | Evaluation of the management approach |
| 103-1 | 17-18, 31 | Explanation of the material topic and its Boundary |
|---|---|---|
| 103-2 | 31 | The management approach and its components |
| 103-3 | 31 | Evaluation of the management approach |
Deloitte & Touche S.p.A. Via Tortona, 25 20144 Milano Italia
Tel: +39.02.83322111 Fax: +39 02 83322112 www.deloitte.it
To the Board of Directors of El.En. S.p.A.
Pursuant to article 3, paragraph 10, of the Legislative Decree no. 254 of December 30, 2016 (hereinafter the "Decree") and to article 5 of the CONSOB Regulation n. 20267, we have carried out a limited assurance engagement on the Consolidated Non-Financial Statement of the El.En. Group (the "Group") as of December 31, 2017 prepared on the basis of article 4 of the Decree, and approved by the Board of Directors on March 15, 2018 (hereinafter the "NFS").
The Directors are responsible for the preparation of the NFS in accordance with articles 3 and 4 of the Decree and the "Global Reporting Initiative Sustainability Reporting Standards" established in 2016 by GRI - Global Reporting Initiative (hereinafter "GRI Standards"), which they have identified as reporting framework.
The Directors are also responsible, within the terms established by law, for such internal control as they determine is necessary to enable the preparation of NFS that is free from material misstatement, whether due to fraud or error.
The Directors are moreover responsible for defining the contents of the NFS, within the topics specified in article 3, paragraph 1, of the Decree, taking into account the activities and characteristics of the Group, and to the extent necessary in order to ensure the understanding of the Group's activities, its trends, performance and the related impacts.
Finally, the Directors are responsible for defining the business management model and the organisation of the Group's activities as well as, with reference to the topics detected and reported in the NFS, for the policies pursued by the Group and for identifying and managing the risks generated or undertaken by the Group.
The Board of Statutory Auditors is responsible for overseeing, within the terms established by law, the compliance with the provisions set out in the Decree.
We have complied with the independence and other ethical requirements of the Code of Ethics for Professional Accountants issued by the International Ethics Standards Board for Accountants, which is founded on fundamental principles of integrity, objectivity, professional competence and due care, confidentiality and professional behaviour. Our auditing firm applies International Standard on Quality Control 1 (ISQC Italia 1) and, accordingly, maintains a comprehensive system of quality control including documented policies and procedures regarding compliance with ethical requirements, professional standards and applicable legal and regulatory requirements.
Ancona Bari Bergamo Bologna Brescia Cagliari Firenze Genova Milano Napoli Padova Parma Roma Torino Treviso Verona
Sede Legale: Yia Tortona, 25 - 20144 Milano | Capitale Sociale: Euro 10.328.220,00 i.v.
Codice Fiscale/Registro delle Imprese Milano n. 03049560166 - R.E.A. Milano n. 1720239 | Partita MV: IT 03049560166
Il nome Deloitte si riferisce a una o più delle seguenti entià: Deloitte Touche Tohmatsu Limited, una società inglese a responsabilità limitata ("DTTL"), le member firm aderenti al suo network e
le eritità a esse correlate
© Deloitte & Touche S.p.A
Our responsibility is to express our conclusion based on the procedures performed about the compliance of the NFS with the Decree and the GRI Standards. We conducted our work in accordance with the criteria established in the "International Standard on Assurance Engagements ISAE 3000 (Revised) - Assurance Engagements Other than Audits or Reviews of Historical Financial Information" (hereinafter "ISAE 3000 Revised"), issued by the International Auditing and Assurance Standards Board (IAASB) for limited assurance engagements. The standard requires that we plan and perform the engagement to obtain limited assurance whether the NFS is free from material misstatement. Therefore, the procedures performed in a limited assurance engagement are less than those performed in a reasonable assurance engagement in accordance with ISAE 3000 Revised, and, therefore, do not enable us to obtain assurance that we would become aware of all significant matters and events that might be identified in a reasonable assurance engagement.
The procedures performed on NFS are based on our professional judgement and included inquiries, primarily with company personnel responsible for the preparation of information included in the NFS, analysis of documents, recalculations and other procedures aimed to obtain evidence as appropriate.
Specifically we carried out the following procedures:
Moreover, with reference to these matters, we carried out a comparison with the information contained in the NFS and the verifications described in the subsequent point 5, letter a).
In particular, we carried out interviews and discussions with the management of El.En. S.p.A. and with the employees of Quanta System S.p.A. and we carried out limited documentary verifications, in order to gather information about the processes and procedures which support the collection, aggregation, elaboration and transmittal of non-financial data and information to the department responsible for the preparation of the NFS.
In addition, for material information, taking into consideration the Group's activities and characteristics:
Based on the work performed, nothing has come to our attention that causes us to believe that the NFS of the El.En. Group as of December 31, 2017 is not prepared, in all material aspects, in accordance with article 3 and 4 of the Decree and the GRI Standards.
The data for the year ended December 31, 2016 presented for comparative purposes in the NFS have not been subject to a limited or to a reasonable assurance engagement.
DELOITTE & TOUCHE S.p.A.
Signed by Gianni Massini Partner
Florence, Italy March 30, 2018
This report has been translated into the English language solely for the convenience of international readers.
El.En. S.p.A. Via Baldanzese, 17 - 50041 Calenzano (FI) - Tel. (055) 8826807 - Fax (055) 8832884 [email protected] - www.elengroup.com
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