Environmental & Social Information • Mar 28, 2022
Environmental & Social Information
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LE NOSTRE PROPOSTE
2021 CONSOLIDATED NON-FINANCIAL REPORT
| An invitation to our guests: our stakeholders | 8 |
|---|---|
| How to interpret the Elica Group's Non-Financial Report | 10 |
| Reporting scope | 12 |
| Sustainability Highlights 2021 | 13 |
| OUR SIGNATURE DISH: OUR IDENTITY | |
|---|---|
| Vision | 18 |
| Our Values and Commandments | 19 |
| Elica Group profile | 20 |
| External initiatives | 34 |
| The supply chain | 36 |
| ESG Governance System | 39 |
| Composition of the corporate boards and performance assessment | 41 |
| Remuneration Policies | 42 |
| Definition of the Group's Strategies, Objectives and Values: | |
| work of the Board of Directors | 43 |
| Conflict of interest control policies | 44 |
| Effectiveness of the Risk Management Model | 45 |
| ELICA'S SUSTAINABLE RECIPE | |
|---|---|
| Who are our Stakeholders? | 54 |
| Shaping Elica's Sustainability | 61 |
| Changes in reporting | 64 |
| THE ECONOMICALLY SUSTAINABLE RECIPE | |
|---|---|
| ------------------------------------- | -- |
| The Group's economic weight | 68 |
|---|---|
| Communications in accordance with EU Reg. 852/2020 - Taxonomy | 71 |
| Group economic performance | 74 |
| Group fiscal compliance | 76 |
| Supporting continuous innovation | 78 |
| Supporting after-sales service quality | 80 |
| Combating corruption | 82 |
| THE ENVIRONMENTALLY SUSTAINABLE RECIPE | |
|---|---|
| Eco-compatible design | 91 |
| Energy consumption and emissions | 93 |
| Use of materials | 100 |
| Waste management | 102 |
| Suppliers evaluated according to environmental and social criteria | 106 |
| THE SOCIALLY SUSTAINABLE RECIPE | |
| Supporting our employees | 111 |
| Equal opportunity and anti-discrimination | 118 |
| Training | 118 |
| Occupational health and safety | 120 |
| Labour/management relations | 128 |
| Supporting customers and quality | 129 |
| We protect customers by providing accurate information | 131 |
| We protect customer privacy | 134 |
| GRI INDEX | |
| 136 |
Despite the challenging landscape of 2021, which saw the continuation of the global health emergency and its major impact on the world's economies, the Elica Group was able to demonstrate the validity and resilience of its strategy.
The product innovation, unique designs, and commercial strength that have always set us apart enabled us to react and consolidate our competitive positioning, while continuing to pursue our path of growth and development, particularly in relation to our own-brand products.
In July, the Elica Group's Motors Business Unit FIME increased its presence in the electric motors market by acquiring E.M.C. and CPS, European leaders in the design and manufacture of electric motors, ventilation systems for domestic range hoods, pellet stove extractor fans and motors for medical applications. In doing so it further strengthened its position as a leader in the motors sector and accelerated its energy saving and energy transition activities.
Our strategic projects continue, with a consistent focus on sustainability as we advance further on the important journey embarked upon with the publication of our first "Non-Financial Report" in 2017. Our objective remains that of measuring and understanding performance in the area of sustainability, while continuing to invest in a culture of sustainability and maintaining constant, ongoing dialogue with stakeholders.
For us, 2021 was also a breakthrough year: constructive discussions with trade unions began in late March and some months later brought a positive conclusion to the dispute regarding the business plan, which had provided for a reorganisation of the Italy Cooking business area. In signing the agreement, Elica demonstrated that it is possible to find a sustainable balance between the Company's need for competitiveness and the equally important needs of our community and our employees.
It is therefore with great satisfaction that we present the fifth edition of the Elica Group's "Non-Financial Report".
Some of our greatest achievements in 2021 related to our personnel, customers and the environment in which we operate. It is these achievements that we wish to share with you and which are detailed further below. We look after the talent of our people and in 2021 - as has been the case for over a decade - our commitment to them was rewarded with "Top Employers" certification in both Italy and Poland. In 2021 our staff worked in environments made even safer by the care and attention we dedicate to maintaining and improving our management systems, which were certified ISO 45001:2018 in Italy in 2019.
Once again, the work and the resources that we have committed have led to a 37% reduction in the overall injury frequency (IF) rate compared to 2020. Safety at work - "SAFETY FIRST!" - has always been an imperative for us. So much so in fact, that although these results are a source of great satisfaction, we have no intention of slowing down. As such, ISO 45001:2018 certification will be extended to Mexico in the first few months of 2022.
As regards energy issues, early 2021 saw the introduction of the Energy Manager function, which led to the identification of a range of new energy efficiency projects. Some of these are already underway, while others are in the start-up phase as of early 2022.
One of the most significant of these projects was the agreement to supply 100% green electricity for production sites in Italy from January 1, 2022.
With the acquisition of E.M.C. and CPS, renewable energy usage in Italy increased again in 2021 - from 7.1% to 14.7%.
We have continued to make our products more sustainable by implementing new solutions in both packaging and accompanying documentation and improving energy efficiency. The motors in our "Premix" range, designed for the "Heating" market segment, are certified for and compatible with the use of hydrogen.
In order to integrate sustainability further into its business, Elica has created a governance model that entails collaboration between a number of bodies dedicated to oversight and management of ESG issues. The recent establishment of the Sustainability Board which will liaise constantly with the Control, Risks and Sustainability Committee - will continue to promote initiatives in the interests of all of the Group's various stakeholders and will define a sustainability plan equipped with objectives, action plans, indicators and targets to precisely define the roadmap for the coming years. ing a message which is also of great significance for our future, since it is the Sustainability Governance we have defined which allows us to confidently present to our stakeholders Elica's new SUSTAINABLE RECIPE.
This document takes its cues from our past in shar-Francesco Casoli - Chairman Giulio Cocci - Chief Executive Officer
Consolidated financial statements of the Elica Group as at and for the year ended December 31, 2021, was drawn up in accordance with the provisions of Legislative Decree No. 254/2016 implementing Directive 2014/95/EU and in accordance with the provisions of Article 8 of Regulation (EU) 2020/852 "Taxonomy Regulation".
This Report contains information on environmental and social issues to facilitate understanding of the activities carried out by the Group, its performance, its results and related impacts, in addition to information on how and to what extent the Company's activities are associated with economic activities considered "eco-sustainable".
The document was prepared, as in the previous year ending 31 December 2020, in accordance with the GRI Sustainability Reporting Standards (published in 2016 or updated in 2018 and 2020) prepared by the Global Reporting Initiative (GRI); specifically, in accordance with the provisions of Standard GRI 101: Foundation, paragraph 3, reference was made to the following GRI Reporting Standards ("GRI Referenced"), the detailed disclosures of which are provided in brackets:
GRI 102: General Disclosures 2016 (102-1, 102-2, 102-3, 102-4, 102-5, 102- 6, 102-7, 102-8, 102-9, 102-12, 102-13, 102-14, 102-15, 102-16, 102-18, 102-22, 102-24, 102-25, 102-26, 102-28, 102-30, 102-32, 102-35, 102-36, 102-38, 102- 40, 102-41, 102-42, 102-45, 102-46, 102-47, 102-49, 102-50, 102-51, 102-52, 102-53, 102-54, 102-55);
The scope and quality of reporting is dictated by the materiality principle, an element identified by the reference legislation and central to the GRI standards: the matters dealt with in this Report are those which were considered relevant on the basis of a thorough materiality analysis described below.
This Non-Financial Report was approved by the Board of Directors on March 16, 2022, following its review by the Control, Risks and Sustainability Committee at its meeting of March 10, 2022.
For clarification or additional information regarding this document, you may contact the QHSE Management System Coordinator by sending an e-mail to the address [email protected] with "Non-Financial Report" in the subject line or by writing to:
Via Ermanno Casoli 2, 60044 Fabriano To the attention of, QHSE Management System Coordinator
or by phoning: +39 0732 6101
(Translation from the Italian original which remains the definitive version)
| Company | Reporting cycle | |
|---|---|---|
| Elica SpA | ||
| Elicamex S.A. de C.V. | ||
| Elica Inc. | ||
| Elica Group Polska Sp.z o.o | ||
| Air Force S.p.A. | ||
| Ariafina Co. Ltd | From 01/01/2021 to 31/12/2021 | |
| Elica GmbH | ||
| Zhejiang Elica Putian Electric Co. Ltd | ||
| Elica Trading LLC | ||
| Elica France S.A.S. | ||
| Leonardo Services S.A. de C.V. | From 01/01/2021 to 17/11/2021 | |
| Elica PB India Private Ltd. | From 01/01/2021 to 29/09/2021 | |
| EMC FIME S.r.l. | From 02/07/2021 to 31/12/2021 |
Consolidated financial statements of the Elica Group as at and for the year ended December 31, 2021, where "Group" refers to the parent Elica S.p.A. (hereafter also "the Company") and the subsidiaries consolidated on a lineby-line basis in the consolidated financial statements: Elicamex S.a. de C.V. ("Elicamex"), Elica Group Polska Sp.z o.o ("Elica Group Polska"), Air Force S.p.A. ("Air Force"), Ariafina Co. Ltd ("Ariafina"), Leonardo Services S.a. de C.V. ("Leonardo"), Elica GmbH, Elica Inc, Elica PB India Private Ltd. ("Elica India"), Zhejiang Elica Putian Electric Co. Ltd ("Putian"), Elica Trading LLC ("Elica Trading"), Elica France S.A.S. ("Elica France"), EMC FIME S.r.l.
As a result of new acquisitions or changes in the Company's shareholding structure, the following table summarises the reporting cycles considered:
Certain aspects and indicators may have a differing reporting scope than that stated above, where such are considered by management as non-significant for specific companies of the Group in consideration of the activities carried out. In this case, the text clearly indicates the reporting scope of the aspect/indicator. Figures for 2020 for EMC FIME S.r.l. are not reported, as the Company was not part of the Group at that time.
to create lasting and sustainable value for all stakeholders.
€ m Economic value distributed by the Group
€ m Research and Development expenditure
€ m Total Group revenues (+19,6% ON 2020)
€ m Adjusted EBITDA (+35,2% ON 2020)
No. Cooking Business Unit patents
Motors Business Unit patents
No. Cooking Business Unit design patents
No. Motors Business Unit design patents
3
ISO 14001:2015 certified sites 6/6 (100%)
ELICA'S ROADMAP
Develop ENERGY-EFFICIENT and ENVIRONMENTALLY FRIENDLY products.
Assess our suppliers on ENVIRONMENTAL and SOCIAL sustainability criteria.
Use ENERGY CARRIERS e ciently.
REDUCE CO 2 EMISSIONS from our production processes.
- Increase the share of RENEWABLE energy used in our operations.
CO2 emissions saved through the use of photovoltaic systems 1,153 tCO2 EQ.
C O 2 emissions saved through energy eciency projects implemented at production sites
of waste produced is NOT HAZARDOUS 99.5%
of waste produced is sent for RECOVERY 93.2%
CO 2 emissions saved through the introduction of new product packaging solutions and reduced use of paper in user manuals.
No. of reports for the prevention of environmentally damaging events analysed 2,154
ELICA'S ROADMAP
HIGHLIGHTS SOCIAL SUSTAINABILITY
Extend ISO 45001:2018 Management System to all production sites.
Collaborative INNOVATION through the world of ART, stimulating INCLUSIVITY and CREATIVITY.
Permanent employees 87.5%
Female employees
Female managers in top management (reporting directly to the CEO)
AVERAGE TRAINING HOURS per capita
Training hours on HSE topics
Workplace accident frequency index
No. of reports for the prevention of occupational Safety analysed
THE SELECTIONS ON OUR MENU COME FROM THE PERFECT COMBINATION OF TRADITION AND INNOVATION.
ELICA
Offer innovative products and design solutions to create lasting and sustainable value for all stakeholders.
Ensuring air quality through design and technology. Creating exceptional value for home ventilation and air purification consumers and professionals.
Striving to cut costs and simplify our work
Viewing change as an opportunity
Being curious and constantly learning
Getting everyone involved in our work
Having and sharing a sense of excitement
Always
setting and pursuing new goals
Thinking outside the box
Having a drive to win
Manage people so that they can get the job done
Loving our customers and serving them with passion Our Values
Delegate, delegate, delegate
Communicate, communicate, communicate
Strive for the impossible and ensure a sense of a challenge for the team (until the very end)
Reward risk-taking and responsibility
Do away with the bureaucratic mentality
Sponsor self-directed teams of problem-solvers
Keep the company smart and simple
Persistence, persistence, persistence Our Commandme
Work by objectives nts
Elica, a market player since the 1970s, is the leading global manufacturer of range hoods and hobs and of motors for domestic ventilation. Chaired by Francesco Casoli and led by Giulio Cocci, the Group has six plants, including in Italy, Poland, Mexico and China and employs more than 3,300 people. With many years' experience in the sector, Elica has combined meticulous care for design with judicious choice of high-quality materials and cutting-edge technology to guarantee maximum efficiency and low energy consumption, making the Elica Group the prominent market figure it is today. This has enabled the Group to revolutionise the traditional image of kitchen hoods: they are no longer seen as a simple accessory but as a design element that improves the quality of life.
Elica's business units are as follows:
Over the years, the Elica Group has steadily increased its market share to become a truly global player. It leads the range hood market and is currently gaining leadership positions in the market for motors for heating boilers in both Western and Eastern Europe.
In Europe, the Group operates in the Marche region of Italy, home to its headquarters (in Fabriano, in the province of Ancona, where Elica's history began), the production facilities of Elica S.p.A and EMC FIME S.r.l., its central research and development laboratory and its subsidiary Air Force. It also has a presence in Poland, through Elica Group Polska, based in Jelcz Laskowice, at the Wroclaw industrial park, one of the most important in Eastern Europe. It serves the German market directly through Elica GmbH, the Spanish market through a dedicated organisation ensuring effective coverage and the French market through its recently opened Elica France location in central Paris.
The Elica Group has a presence in Querétaro, Mexico, through Elicamex, its production and distribution facility for Latin America and North Ameri1. Original Equipment Manufacturer
ca, with the company Elica Inc. based in Chicago. The Mexican site is part of the strategic move by the Group in recent years to operate even closer to customers in this market and to take advantage of significant growth opportunities both through the OEM1 business and through the launch and development of own brands.
In Asia, the Elica Group has been present since 2002, the year of the joint venture with Fuji Industrial Co. Ltd., leader in Japan in the production of range hoods and a subsidiary of Elica since 2006. This joint venture led to the creation of Ariafina, a leading brand in Japan for high-end range hoods. In 2005, Elica opened a showroom on Osaka's main shopping street.
In May 2010, the Elica Group entered the Indian market by setting up a joint venture with Mr. Pralhad Bhutada, launching therefore Elica PB India Ltd's operations, based in Pune, manufacturing and selling own brand and third-party brand products and leveraging also the branding and technical knowledge of the Elica Group. Entry into one of Asia's largest markets, featuring among the world's highest growth rates, has been a winning decision thanks to Chief Executive Officer Pralhad Bhutada's stewardship and an effective distribution and marketing strategy.
On September 10, 2018, Elica S.p.A. sold to Whirlpool of India Limited 33% of the share capital of the Indian subsidiary Elica PB India Private Ltd., together with the other Indian minority shareholders disposing of 16%. On closing, Whirlpool of India Limited acquired in total 49% of the Indian subsidiary Elica S.p.A.. On the basis of the blocking agreement with the Indian shareholders, Elica S.p.A. continues to exercise control over Elica PB India Private Ltd., and fully consolidate the company in its financial statements. Alongside the closing of the agreement and the acquisition of the investment, Whirlpool of India Limited signed an exclusive distribution agreement for a number of its cooking segment products with Elica PB India Private Ltd to speed up the development of its business on the Indian market, leveraging on Elica PB India's distribution structure which, over recent years, has built a comprehensive network of mono-brand stores and reports annual growth rates at over 30%.
On September 29, 2021, Elica signed an agreement for the sale to Whirlpool of India Limited of 19% of the share capital of the Indian subsidiary Elica PB India Private Ltd. while with the other Indian minority shareholders disposed of a further 19% share. Upon completion of the transaction, Whirlpool of India Limited held approx. 87% of Elica PB India Private Ltd., while Elica S.p.A. and the group of other Indian minority shareholders retained a holding in the Indian company with a stake of approx. 6% each.
In 2010, Elica entered the Chinese market, the world's largest range hood market, by acquiring a majority holding in the Chinese company Zhejiang Putian Electric Co. Ltd., which operates under the "Puti" brand, producing and marketing range hoods, gas hobs and kitchenware sterilisers. Putian possesses a high quality production base with strong potential for development. The production site is located in Shengzhou, a major Chinese industrial district for the production of home appliances. In 2012, Elica sold to Fuji Industrial Co. Ltd. a 3.24% stake in Zhejiang Putian Electric Co. Ltd. The transaction - which underlines the strategic importance of having a direct presence in this area - consolidated and strengthened the co-operation with our Japanese partner. Following the share capital increase of the Chinese subsidiary, Elica holds 99.44% of the investment.
In 2012, the Company decided to strengthen its direct presence in this market, in which it has operated through its brands since 1995, acquiring full control of the subsidiary Elica Trading LLC, which markets own brand products, such as those of Elica, Jet Air and Turboair. Thanks to its product warehouses, Elica Trading LLC, incorporated in 2011 and with head offices in St. Petersburg and Moscow, directly serves a dense, locally-based distribution network. Today the organisation can ensure improved efficiency and quality on this market in terms of both the product and service offered to its customers and consumers, thanks to a directly operated technical support network.
The Group operates in Europe, the Commonwealth of Independent States, Asia and America. In addition to the Italian headquarters, commercial offices are located in Spain, France, Germany, Russia, Japan, India and the United States, and at year-end 2021 it had six production facilities in Italy, Poland, India, China and Mexico. The Group is present at the global level both directly (through its commercial offices) and indirectly (distribution contracts).
Scope: Elica S.p.A., Elica Group Polska Sp.z o.o, Leonardo Services S.a. de C.V., Elica Inc., Zhejiang Elica Putian Electric Co. Ltd, Elica Trading LLC, Air Force S.p.A., Elica France S.A.S, Elica GmbH and Elica PB India Private Ltd, EMC FIME S.r.l. (not included in 2020 data)
The number of employees, as detailed in this table and all other tables relating to employees, refers to the figure for each given year.
| staff) | ||||
|---|---|---|---|---|
| unit | 2021 | 2020 | ||
| No. | 1,073 | 1,102 | ||
| $\bigcirc$ | 769 | |||
| 713 | $\bigcirc$ | |||
| 5 | $\overline{4}$ | |||
| 689 | 622 | |||
| 105 | 108 | |||
| $\bigcirc$ | $\bigcirc$ | |||
| 14 | 15 | |||
| 468 | 451 | |||
| 120 | 128 | |||
| 27 | 28 | |||
| 14 | 15 | |||
| 50 | n.a. | |||
| 3.278 | 3.242 |
Group employees by company unit 2021 2020 Elica SpA No. 1,073 1,102 Leonardo Services S.A. de C.V. 0 769 Elicamex S.A. de C.V. 713 0 Elica Inc. 5 4 Elica Group Polska Sp.z o.o 689 622 Air Force S.p.A. 105 108 Ariafina Co. Ltd 0 0 Elica GmbH 14 15 Elica PB India Private Ltd. 468 451 Zhejiang Elica Putian Electric Co. Ltd 120 128 Elica Trading LLC 27 28 Elica France S.A.S. 14 15 EMC FIME S.r.l. 50 n.a. Total 3,278 3,242
Production Network
Direct Presence
1
2
Mergo - Cerreto
ITALy ELICA S.P.A. Fabriano 1
AIRFORCE S.P.A. Fabriano
EMC FIME S.r.l. Castelfidardo
FRANCE ELICA FRANCE S.A.S. Paris
2
GERMANY ELICA GMBH
Munich 3 POLAND ELICA GROUP POLSKA SP. Z.O.O. Jelcz L. - Łeg 4 CHINA ZHEJIANG ELICA PUTIAN ELECTRIC CO. LTD. Shengzhou Shanghai 7 MEXICO RUSSIA 9 5 JAPAN ARIAFINA CO. LTD. Sagamihara-Shi 8
ELICA TRADING LLC Moscow - St. Petersburg
USA ELICA INC. Chicago
SPAIN 10 ELICA Barcelona
6
REST OF THE WORLD
TOTAL: 107
The countries served at the commercial level are divided into five main geo-clusters for a total of 107 nations. In particular, the Eastern Europe geo-cluster includes the geographical area that extends from the Balkans to the former Soviet Union, including Turkey and the former Soviet Republics. The "Rest of the World" geo-cluster comprises India, China, APAC, Africa and others.
The Group's revenues are split into 2 main business lines:
1. Cooking of wich:
mately 16% of total revenues)
The main distribution channels served for the sale of own brand products and their weight as a percentage of net revenue are shown below:
| Cooking own brand cluster | Share |
|---|---|
| Distributors | 42% |
| Kitchen manufacturers | 39% |
| Chains and specialised furniture/home appliance stores | 14% |
| Internet | 3% |
| Small oems | 2% |
| Other | 1% |
| Motors cluster | Quota |
|---|---|
| Large OEMs | 63% |
| Small OEMs | 17% |
| Distributors | 17% |
| Other | 3% |
The Elica brand was created in 1970 with an ambitious goal: to bring healthy air to kitchens throughout the world. For over 50 years, Elica brand range hoods have satisfied millions of customers across the world with their design, reliability and innovation.
New and original products are constantly being created to add to the wealth of products developed, the fruit of devoted and intense research focused on innovating not only the aesthetic of the models but the entire production process.
Sold in Italy and in the markets of the Far East and the CIS (Commonwealth of Independent States), the Turboair brand offers mid-range products known for their quality, originality and care of materials.
The brand, created through a joint venture with Fuji Industrial, produces range hoods intended for the top end of the Japanese market, where it has succeeded in making a name for itself. Ariafina products harmoniously marry the best Japanese technology with unmistakable Italian design.
This brand, distributed in North America, includes a highly competitive range of products which fully encapsulate the Company's values: reliability, functionality, aesthetics and quality, in keeping with Italian design culture.
This historical brand on the Russian market is particularly appreciated for the capacity of its products to deliver the values of Italian craftsmanship, translating into excellent technical features and high aesthetic quality.
Acquired as part of the Chinese joint venture, Puti is a leading brand in the sector in China, offering cooktops and kitchen sterilisers in addition to range hoods. Puti range hoods cater to the medium and high end of the Chinese market, offering competitive products that are highly functional and technologically advanced, with a European-style attention to design.
The FIME brand represents the Elica Group's Motors unit. Over the years, FIME has developed its presence in electric motors and ventilation systems for home appliances and residential heating and cooling.
FIME's biggest customers include major industrial groups in various sectors such as Vaillant, Bosch, Viessmann, Ariston Thermo, BDR Thermea, Riello, Immergas, BSH, Miele, Whirlpool and Electrolux. The Company has developed extensive know-how not just in electromechanical design of electric motors, but also in electronic and fluid-dynamic design, which today make it possible for it offer integrated systems.
In line with the Elica Group's industrial policy, FIME is also orientated
towards production focused on the well-being of the individual and the environment. FIME brand ventilation systems comply with the regulatory requirements concerning sustainability and reduced consumption, in all
On June 28, 2021, a preliminary agreement was signed between Elica S.p.A. and Electric Motors Company S.r.l. ("E.M.C.") and CPS S.r.l. ("CPS") for the purchase of 100% of the share capital of the respective companies, which are European leaders in the design and manufacture of electric motors, ventilation systems for domestic range hoods, pellet stove extractor fans and motors for medical applications. This agreement, which was completed with the signing of the final contract on July 2, 2021, is perfectly in line with the development of the Motors (FIME) business, since it reinforces the strategy undertaken with the separation of the Motors and
Cooking divisions.
Since January 1, 2022, the Italian motors branch has been managed by EMC FIME S.r.l. (a wholly-owned subsidiary of Elica S.p.A.), Europe's leading hub of excellence in the ventilation and heating sector, which has enabled said branch to develop its critical mass to more effectively meet the needs of a growing market.
The Group's strategic objectives, promoted by Elica's top management and approved by the Board of Directors, are formulated in a planning process involving all operating segments, markets, head offices and production sites.
The Group's strategic plan (budget and three-year plan) is monitored by setting and verifying (monthly, quarterly and annually) targets for the dedicated commercial organisations (Markets, OEM and Own Brand Channels and the Motors Division), the Operations area (Manufacturing, Logistics, World Class Manufacturing, Quality and Purchasing), Research and Development and the staff functions (Finance EHS2, Human Resources and IT).
In 2009 Elica joined the World Class Manufacturing Association (WCMA), an international non-profit organisation bringing together companies from various sectors involved in the introduction and the development of this production method which targets ongoing and sustainable improvement.
2. Environment Health
& Safety
WCM is a structured and integrated production system, whose main focus is to create a culture of ongoing improvement through the recognition of waste and losses across the entire value chain of the companies applying it.
It is structured in ten technical and ten managerial pillars.
WCM prioritises waste and losses through ad hoc tools and methods, with each loss and waste then addressed through specific approaches.
Safety, quality and the environment are key concerns, each reflected in a similar number of technical pillars that work to reduce safety risks and environmental impacts, improving the quality of products, workers' lives and the surrounding environment.
The ten technical pillars are flanked by the ten managerial pillars, which focus - among other matters - on developing talent and recognising everyone's contribution to the improvement of their work.
The approach of prioritising the problems to be tackled in terms of safety, quality and cost, the use of the most appropriate tools and methods, their strict application and the "pace" of expertise development and of the perimeter, have led WCMA enterprises to deliver excellent results, as recognised by other organisations and associations from both the public and private spheres.
The objective of the Association is to promote the sharing and application of best production practices among partner companies.
MAIN ACTIVITIES carried out with Elica
Periodic verification of pre-determined activities and objectives, identification of new auditors.
Confindustria is the main association representing manufacturing and service businesses in Italy.
Confindustria's voluntary members include over 150 thousand small, medium and large companies with a total workforce of 5 million.
The association's mission is to support business's role in driving Italy's economic, social and civil growth. To achieve this aim, it designs common strategies, goals and initiatives, in a manner respectful of members' autonomy and sphere of influence, working together with exponents of the economy and finance, Italian, European and international institutions, government, labour, culture and research, science and technology, politics, information and civil society.
Confindustria adds value through its network extending from its Rome headquarters to its Delegation in Brussels (a key point of contact between the entire Italian business community and the European Union) and the 217 member organisations operating in various sectors throughout the territory.
MAIN ACTIVITIES carried out with Elica
Advisory activity: employment law
Assonime is an association that represents Italian joint-stock companies. It was founded on November 22, 1910, and pursues the mission, as set out in Article 2 of its charter, of studying and solving problems that directly and indirectly affect the interests and development of the Italian economy. To this end, the association:
– strives for the improvement of industrial, commercial, administrative and tax legislation, with particular regard to company law, including in
– strives for the cultural elevation of the economic environment and for a deeper understanding, in Italy and abroad, of the Italian legal system and economic situation, including through periodic publications and
– promotes the protection of the collective interests of its members;
monographs;
members;
– informs members of legislative and administrative developments and particularly significant international developments in industrial, commercial, administrative and tax matters;
– conducts and promotes – in some cases in coordination with other institutions – studies and publications on economics and the law and oversees the collection of data and information that may be of interest to
– provides members with clarification and instructions regarding industrial, commercial, administrative, tax and currency legislation.
MAIN ACTIVITIES carried out with Elica
Institutional relations and networking activity
The Leonardo Committee was formed in 1993 at the initiative of Confindustria, ICE3 and a group of businessmen and men of culture, including Gianni Agnelli and Sergio Pininfarina, with the aim of promoting and establishing Italian quality throughout the world.
It is no coincidence that the name "Leonardo" evokes the magical intersection of art, science and technology: three forms of expression of human ingenuity that reflect Italy's success at an international level.
The Committee brings together over 160 renowned businessmen, artists, scientists and men of culture wanting to join together in furtherance of Italy's development and originality through high-profile cultural and economic events.
In its activity, the Leonardo Committee cooperates with all institutions responsible for promoting Italian companies abroad and their international expansion efforts. Its members also include top government officials such as the Prime Minister, Minister of Foreign Affairs, Minister of Economic Development and Minister for Cultural Heritage and Activities.
AIDAF – the Italian Association of Family-Owned Companies – was founded in 1997 by Alberto Falck along with a group of like-minded business people. Its members now include over 180 family-owned companies, accounting for approximately 14% of Italy's GDP and employing 600,000 people. In May 2019, Elica S.p.A. Francesco Casoli was appointed Chairman of AIDAF.
The Italian Association of Family-Owned Companies (AIDAF) is the only association specifically dedicated to matters of interest to small, medium and large family businesses, involving all members of business-ow-
3. Italian Trade Agency. ICE is the Agency for the promotion abroad and international expansion of Italian businesses.
4. Family Business Network
5. National Research Council
ning families.
The association is active in three main areas:
AIDAF is the Italian Chapter of FBN4, - Family Business Network. MAIN ACTIVITIES carried out with Elica
Institutional relations and networking
The Adriano Olivetti Institute (ISTAO) is one of the longest-running management training schools in Italy. It was founded in 1967 by the economist Giorgio Fuà with the support of the Adriano Olivetti Foundation, the Social Science Research Council and the CNR5.
The Institute has always taken inspiration for the culturally and civically oriented training of its managerial students from the figure of Adriano Olivetti himself, who championed entrepreneurship as a moral and productive duty.
The institute's methodology is based on experimentation and experience within a corporate context, in the conviction that the best way to learn is face to face with the operational and professional world. The formula favours learning by producing over traditional note-taking lessons.
MAIN ACTIVITIES carried out with Elica
Elica is a supporting partner of the Adriano Olivetti Institute with the aim of co-designing training for its own managers and benefiting from an advance selection of master's candidates from among recent graduates.
The ISTUD (Institute of Management Studies) Foundation was the first independent Business School in Italy.
Since 1970, it has been dedicated to management training and research, creating and organising inter-company and tailor-made training programmes for managers and professionals in all roles and sectors, and post-graduate courses for selected young talents from across Italy.
MAIN ACTIVITIES carried out with Elica
Elica works with ISTUD to select people trained with innovative methods, a focus on digital technology and close links with national and multinational managers and companies. The partnership also gives Elica managers access to the ISTUD Masters programmes, which are constantly updated and oriented at facing up to emerging challenges and change in the labour market, organisations, business and general society.
The Advertising Standards Council of India (ASCI), of which Elica PB India is a member, was set up in 1985 and is committed to the cause of self-regulation in advertising, guaranteeing the protection of consumer interests. ASCI was established with the support of all four advertising related sectors, i.e. advertisers, advertising agencies, media (including television and press) and others, such as public relations agencies and market research companies.
CII
The Confederation of Indian Industry, to which Elica PB India complies, works to create and support a favourable environment for the development of India, partner industries, government and civil society, through targeted consulting processes.
Elica S.p.A. is a member of the CFI - the "Intelligent Factory" National Technology Cluster, an association of stakeholders (companies, universities, research centres and business associations) involved in the advanced manufacturing sector. The CFI is acknowledged for its role in driving the sustainable economic growth of communities throughout Italy, fostering innovation and specialisation in national manufacturing systems. Its main areas of activity are: automation, industrial efficiency and sustainability, innovation in production processes and the optimal use of human resources in production facilities.
Elica currently forms part of the organisation's Coordination and Management Body. Elica S.p.A. is also part of the "Marche Manufacturing Cluster - Industrial Innovation Center", which is currently chaired by an Elica representative. Finally, Elica is represented on the Board of Directors of the Marche Foundation Cluster, the operational arm of the Technology Clusters in the Marche region.
Elica S.p.A. is on the Steering Committee of the Industrial Engineering degree courses (Mechanical and Management) of the Marche Polytechnic University and of the Information Technology degree courses at the University of Camerino. One of the main purposes of the Committee is to foster and promote relations between the university and the manufacturing base, bringing university training courses closer to the needs of the working world and monitoring the adjustment of the curricula offered by the courses to the indications provided by businesses.
It is also a member of APPLIA - the Home Appliances Manufacturers Association. APPLiA Italia contributes to enhancing the competitiveness and sustainable development of industry manufacturers and aims to ensure access to all the knowledge needed to design innovative, sustainable (i.e., energy-efficient) and high-performance products. By complying with the Code of Conduct, members ensure that consumers and customers receive data on product performance (as stated in manufacturer's catalogues and websites) that has been scientifically measured according to a structured testing process in line with European regulations. Elica S.p.A. is also a member of the "Range Hoods" working group as
parent company in Italy and Technical Advisor in Europe.
In reference to its Motors business unit, Elica S.p.A. is a member of EVIA – European Ventilation Industry Association, an association of manufacturers and stakeholders focusing on the residential and non-residential indoor ventilation industry.
At European and domestic level, EVIA promotes the application of energy-efficient ventilation systems which closely consider the environmental, health and comfort aspects that ensure good indoor air quality in facilities and buildings.
Elica is also a member of ASSOTERMICA, the association within Confindustria that represents Italian manufacturers of heating system equipment and components.
The association's main goals are promoting energy efficiency and protecting the environment in accordance with European directives.
Elicamex is a member of AERI (Asociación de Ejecutivos de Relaciones Industriales), whose mission is to update salary surveys, report on developments relating to labour laws, keep abreast of new best practices and form a regional network of local companies.
Air Force is a founder and supporter of the non-profit association "Made in Fabriano Academy" (based in Fabriano), whose mission is to promote manufacturing companies in Fabriano by supporting their visibility and value.
The main charitable-giving initiatives in which Elica participates are described below.
The Ermanno Casoli Foundation (FEC), established in 2007 in memory of Elica's founder, promotes initiatives in which contemporary art becomes a means of spreading knowledge and methods capable of improving the working environment and triggering processes of innovation, with the goal of supporting relations between art and business.
A pioneer in exploring the potential for dialogue between art and industry, the Foundation has made a name for itself in Italy as an avant-garde promoter of the use of contemporary art in company training, through increasingly structured, specialised activities capable of spurring interaction between these two worlds in furtherance of their respective goals.
The basis of the Foundation's activities is the conviction that contemporary art, in its role of provoking thought, contributes to breaking traditional paradigms of common thinking, allowing individuals who come into contact with it to enter a mental and emotional state of openness to unexpected possibilities.
This makes contemporary art particularly suited to creating open, in-
novative experiential environments. The Foundation promotes projects in which art and corporate organisations feed into one another, triggering original processes of innovation that stimulate creativity and reinforce teamwork.
The works of art in the Elica Corporate Collection are the product of interaction between employees and internationally renowned artists. This unique, specific collection of works has been featured in the volume Global Corporate Collections (2015), dedicated to the world's one hundred most beautiful corporate art collections.
At Elica the Foundation finds fertile ground for experimenting with the processes and outcomes of all its activities, so that they may then be applied in other settings. Major initiatives involving the FEC in 2021:
July: collaboration on the inauguration event for the "Zona Conce" cultural hub in Fabriano, a project born from the redevelopment of former tannery buildings. The event will be a meeting point for artists, exhibitions, workshops and guests from across Italy.
December: 19th edition of the Ermanno Casoli Award - the first to be held in Querétaro (Mexico) - with the artist Jorge Satorre (born Mexico City, 1979). Satorre joins the world of Elica with the Pelusa project, curated by Francesco Pedraglio and Marcello Smarrelli. This is the result of a complex path which, starting from drawing and continuing with etching and sculpture, has involved more than 70 ElicaMex employees.
Opening in September 2016, Iris Garden is an Italian/English learning centre for children from three to six years of age. A place where various sensibilities, families, educators and Fabriano-area companies come together, Iris Garden is an initiative of high social value with a focus on the youngest members of society. The centre is the brainchild of Francesco Merloni, with support from Ariston Thermo and Elica, and is run by the social cooperative Mosaico.
The initiative is of considerable social value and offers a strategic vision focused on the youngest members of society. The centre, whose teaching staff include native speakers of both English and Italian, is a place where children can develop their cognitive and social abilities and hone the skills required to become bilingual in a setting offering full immersion in the English language. The Reggio Children Approach education project is based on the participation of families, collaboration between all staff, the work of the studio and the studio teacher and combines pedagogic and didactic coordination to encourage a positive, cutting-edge growth path from the early stages of the child's life.
Elica believes that excellence can be promoted by focusing both on the development of people within the company and by promoting growth in the area and social context in which the company operates. Accordingly, the Group is committed to facilitating the development of tools and actions aimed at achieving wellbeing both in the workplace and in society as a whole.
The Elica Group's global logistics organisation is responsible for managing the entire sequence of businesses processes, from order receipt to delivery of the product to the customer. It plays a central coordinating role aimed at ensuring that all affected processes are fully aligned with the Group's strategies and promote their standardisation and ongoing improvement.
The central organisation has departments dedicated to the two main business divisions, Cooking and Motors.
Its main areas of activity are:
The management of finished product stock and customer service is coordinated by headquarters, which sets the relative levels to ensure service to the end customer and the optimisation of production resources.
The coexistence of a B2B and B2C is an important, distinctive characteristic of the Group that also entails the coexistence of two different management models: B2B relates to the direct order by the customer of third-party brand products (make-to-order) and B2C relates to the models for forecasting demand for own brand products (make-to-stock).
In order to serve the B2C segment, our distribution organisation is broken down by region (Italy, Germany, France, Russia, Poland and North America etc.), and there is therefore a dedicated team for each geographical area within the organisation.
Products are distributed both directly by the first-tier warehouses located near the production facilities and by the second-/third-tier warehouses located in the various geographical areas.
The extensive variety and complexity of the product line entails the management of approximately 480 different suppliers based throughout the world. Approximately 40% of current spending on the purchase of materials and components originates in low-cost countries (China, Mexico, etc.), whereas the remaining 60% originates with EMEA suppliers.
The Motors Division produces approximately 27% of products for internal use, meaning they are used in range hoods sold by the Group itself (captive production), and 73% for external customers.
The production of motors for non-captive customers is broken down into four main segments:
– Ventilation (approximately 46% of units produced)
– Home appliances (approximately 26% of units produced) – Heating (approximately 27% of units produced) – Medical (approximately 1% of units produced)
For this division, the organisation distributes motors to customers throughout the world directly from the tier-one warehouse.
GOVERNANCE
NFR 2021
Elica S.p.A. is a joint-stock company listed on the Italian Stock Exchange since 2006 on the STAR segment. The Casoli family exercises control over Elica S.p.A. indirectly through Fintrack S.p.A., the majority shareholder of FAN S.r.l., in turn majority shareholder of Elica S.p.A. Francesco Casoli, who holds a majority of the share capital of Fintrack S.p.A., indirectly exercises legal control over the Company, pursuant to Article 93 of the Consolidated Finance Act.
The corporate purpose of the Company's activities under the By-Laws is: the exercise, on its own behalf and on behalf of third parties, of the industry of construction of electromechanical and mechanical articles, steel production and the production of articles in synthetic resins and similar; the trade, including electronically, of the products deriving from the aforementioned activities and processing, even if produced by others; the production and sale of home appliances and components for the electromechanical and mechanical industries; the performance of services and the processing of accounting data on behalf of subsidiaries and associates, including via the use of IT systems, accounting machines and computers of all kinds; the performance of consultancy services within the scope of its own activity, including the activity of product testing.
Elica S.p.A. adopted on October 30, 2020 the Corporate Governance Code of January 2020. A traditional administration and control model is
followed:
– Company management is exercised by a Board of Directors (BoD, supported by the Internal Board committees: Appointments and Remuneration Committee and Control, Risks and Sustainability Committee)
– The supervisory functions are carried out by a Board of Statutory Au-
– The statutory audit and accounting control are carried out by the independent audit firm appointed by the Shareholders' Meeting.
– A Supervisory Board has been set up in accordance with Legislative
Articles 16 and 24 of the By-Laws respectively govern the appointment and replacement of Directors and members of the Board of Statutory Auditors, with the application of slate voting. Only shareholders who individually or collectively hold at least 2.5% of the share capital – or a differing minimum percentage provided for or allowed by current regulations – have the right to present slates.
For further details, reference should be made to the By-Laws available on the website https://elica.com/corporation.it, Corporate Governance section, on that of Borsa Italiana S.p.A.
Francesco Casoli Giulio Cocci Director & Chairman BoD Director and CEO
Susanna Zucchelli Elio Cosimo Catania Liliana Fratini Passi Non-Executive Independent Director
Angelo Catapano Monica Nicolini Non-Executive Independent Director
Non-Executive Independent Director
Lead independent Director
6. Consolidated Finance Act
NFR 2021
The Company's Board of Directors is composed of Executive and Non-Executive Directors with adequate skills and professionalism. As per Article 16 of the By-Laws, the Company is administered by a Board of Directors made up of a minimum of 5 members to a maximum of 11 members including non-shareholders. The current composition of the Board of Directors was approved by the Shareholders' Meeting on April 29, 2021. The Board of Directors comprises seven members, of which five are independent as per the Corporate Governance Code and the CFA6.
With regard to gender balance, on October 30, 2020 the Company approved the amendments to the By-Laws which reserve two-fifths of the positions on the administrative and control bodies to the under-represented gender.
The Company's By-Laws provide that the Board of Statutory Auditors consist of three Statutory Auditors and two Alternate Auditors.
For details on the process and the appointment and replacement criteria, on the Executive Director succession plan and on the experience and expertise of the Directors and the members of the Committees, reference should be made to the Corporate Governance and Ownership Structure
Report.
7. The PM (Performance Management) process is the Elica Group's main People Development and assessment process.
Scope: Elica S.p.A., Elica Group Polska Sp.z o.o, Leonardo Services S.a. de C.V., Elica France S.A.S, Elica GmbH, Zhejiang Elica Putian Electric Co. Ltd, Elica Trading LLC, Air Force S.p.A. Elica PB India Private Ltd., EMC FIME S.r.l. (not included in 2020 data)
The remuneration of Directors (particularly those holding executive office) and top management is a key incentive and control mechanism to ensure the integrity and efficacy of the corporate governance mechanisms. These remuneration policies target the achievement of the Group strategy and are an essential tool to align the interests of shareholders with those of management. The remuneration system is in addition part of a wider framework to attract, satisfy and maintain the most suitable personnel to ensure the Company's success.
Development of the individual and equal opportunities, which have always been at the heart of Elica's culture, are the "ethical" base on which the remuneration systems are built.
With regards to the instruments utilised, the "Annual Remuneration Policy" in the Group "Remuneration Policy and Report" - to which reference should be made - comprehensively outlines the Remuneration Policy and its implementation at the Company as regards the members of the management bodies and the Senior Executives.
Elica's remuneration system, always based on the principles of the Corporate Governance Code, is a key instrument to:
As regards senior Executives, this goal is achieved also through linking a significant part of remuneration to the reaching of the pre-set performance objectives, established through "management by objectives" (MBO) and Long-Term Incentive (LTI) plans.
For the other Executives, as well as for many professionals, variable remuneration is based on "Management by Objectives" plans, which, linked to the performance management (PM7) system and the evaluation of managerial skills enabling the achievement of objectives, incentivise the contribution of everyone regarding not only quantitative but also quality performance indicators.
Fixed remuneration is generally defined according to the content of the positions and a market benchmark for each role, weighted according to professional expertise and seniority, where applicable.
In Italy, the national collective bargaining contract for the metalwork and plant installation industry, or that for Industry Executives for executive roles, is applied to both Elica and Air Force.
The role of the Elica Board of Directors is crucial in identifying and pursuing the Company's strategic objectives. The By-Laws effectively grants it the widest powers for the management of the Company: it may carry out all acts and operations that it considers necessary to achieve the Company's purpose, except for those attributed by law to the Shareholders' Meeting or arising from specific authorisations required by the By-Laws.
Based on the powers conferred, the Board of Directors:
– examines and approves the strategic, industrial and financial plans of the Company and of the Group, periodically monitoring their implementation; establishes the corporate governance of the Company and the
structure of the Group.
Performance Indicators
| Ratio between higher compensation and total median compensation | ||||
|---|---|---|---|---|
| Ratio | unit | 2021 | 2020 | |
| Italy | No. | In Italy, the "Annual Total Compensation" ratio of the employee with the highest compensation - the Chairperson - and the employee with the median compensation is 87x. Given that a significant component of the Chairperson's total compensation relates to variable multi-year performance (LTI Plans), basing the same ratio on Fixed Compensation and Short-Term Variable Incentive (Annual) only returns a figure of 44x. |
In Italy, the "Annual Total Compensation" ratio for the employee with the highest compensation - the Chairperson - and the employee with the median compensation is 68x. Given that a significant component of the Chairperson's total compensation relates to variable multi-year performance (LTI Plans), basing the same ratio on Fixed Compensation and Short-Term Variable Incentive (Annual) only, returns a figure of 43x. |
|
| France | 3.54 | 3.53 | ||
| Germany | 1.78 | 2.47 | ||
| The Americas | 28.43 | 21.37 | ||
| Poland | 13.25 | 8.86 | ||
| Russia | 16.24 | 19.83 | ||
| China | 35.0 | 35.24 | ||
| India | 88.15 | 87.67 | ||
Elica adopts principles of conduct and control which seek to avoid possible conflicts of interest. The By-Laws establish that the competent bodies report on at least a quarterly basis to the Board of Directors and the Board of Statutory Auditors on the exercise of their powers and in particular on operations in which they have an interest, on their own behalf and on behalf of third parties.
In addition to the statutory requirements, the Company adopts preven-
NFR 2021
tion and control policies in this regard, including through the implementation of the 231 Model and the Company's Ethics Code. The Company also encourages the development of a corporate culture that centres around the principles of transparency, ethics, fairness and the respect of applicable
rules.
The recipients of the 231 Model shall adopt appropriate behaviour to avoid conflicts of interests. Alongside the 231 Model, which is regularly updated, the Company has adopted a Related Party Transactions Procedure, in addition to an Anti-Corruption Policy, which outline principles to prevent possible conflict of interests and resolve them where necessary.
In compliance with the principles and criteria of the Self-Governance Code, Elica has adopted an Internal Control and Risk Management System ("ICRMS"). This system consists of a set of rules, procedures and organisational structures targeted at enabling the identification, measurement, management and monitoring of the main corporate risks. It is also designed to ensure that the Company is run in a sound and proper manner, in line with the objectives set and in compliance with the provisions of the Ethics Code and the Company's Principles of the Self-Governance Code as approved by the Board of Directors.
The ICRMS works on three levels: – first level: controls built into operational processes carried out by Man-
– second level: operational, financial and compliance risk monitoring and management controls etc. Carried out through the coordination of the Risk & Compliance Director, the Financial Reporting Officer (as per Law No. 262/05), the individual managers of the Company, and other control and monitoring figures (e.g. Health and Safety, Quality and Legal
– third level: independent and objective assurance carried out by the Internal Audit service on the adequacy and effective operation of first and second control levels and of the risk management methods.
The Internal Audit activities supplement, monitor and provide assurance on the ICRMS activities. This function is covered by an internal manager reporting directly to the Board of Directors; it is a key role for defining and assessing the internal control system and the risk prevention and mana-
gement policy.
Elica has provided for the development and monitoring of a structured Enterprise Risk Management (ERM) model with the purpose of identifying and assessing potential events which could affect the achievement of the main corporate objectives defined in the Strategic/Annual Plan.
Elica's ERM model is based on a cyclical process - carried out on an annual basis - and ensures the detection, analysis and monitoring of all significant risks for Elica (Risk Universe) providing Internal Audit with all the elements it requires to conduct its activities.
This process entails an initial Risk Identification phase, understood as the identification of a list of risks that could impact the Company.
In this regard, Elica's risk mapping is based on a two-level categorisation (Risk Model) and includes 4 first-level categories and 29 second-level categories, as shown below:
Risk mapping is updated annually in consideration of any changes that have taken place in the Company's internal and external circumstances and is integrated in consideration of the contents of the "Identification of Context" section, an integral part of Elica S.p.A.'s Quality, Environment and Safety Management System.
Downstream of Risk Identification activities, other tasks are undertaken to assess them through the application of a specific reference methodology. Specifically, the methodology applied by Elica includes the following steps:
– Risk assessment at an inherent level on the basis of impact and likelihood of occurrence without Management control measures (i.e. intrin-
– Risk positioning within a matrix (or heat map) representing the level of
– Assessment of the overall level of Management oversight;
Inherent Risk;
of Top Risks.
– Assessment of residual level risks by combining impact and likelihood of occurrence values following implementation of safeguards;
– Risk positioning within a heat map of Residual Risk and identification
The Enterprise Risk Management Model applied by Elica includes inte-
gration with sustainability issues.
Specifically, integration between Risk Management and Sustainability is particularly explicit in the following phases of the Risk Management
– Risk Identification: in this phase, risks that may have implications for Environmental, Social and Corporate Governance (ESG), beginning with those contained in the Risk Universe, are identified;
– Risk Evaluation: • in this phase, the possible impacts of risks are evaluated in relation to the individual ESG areas. In detail, Elica's Risk Management methodology includes specific impact assessment drivers targeted at intercepting the possible consequences of each risk on individual dimensions of ESG relevance.
For further details on the efficacy of the Risk Management Model, reference should be made to the Corporate Governance and Ownership
Structure Report.
THE SKILL LIES IN THE ABILITY TO BALANCE ECONOMICS, THE ENVIRONMENT AND PEOPLE.
In order to provide a clear, complete account of the social and environmental value created by the Group and how its actions seek to monitor and manage its sustainability footprint as effectively as possible, it will firstly be necessary to clarify what is meant by "sustainability footprint".
The "sustainability footprint" is a way of analysing the management system for an organisation's activity that can be used to determine its economic, environmental and social impacts based on specific indicators.
Properly measuring the nature of the effects and context for the organisation's activities is essential to an increasingly thorough analysis and increasingly informed management of such a strategic aspect of the Elica Group.
With regards to that outlined above, the Group's activities are undertaken in full compliance with the Ethics Code (approved by the Board of Directors most recently on March 24, 2017) which, through all of the indications contained therein, acts as a reference for:
In its 2020 Non-Financial Report, Elica presented readers with the launch of the "Sustainability On Air" project, the main objective of which was to integrate sustainability strategies into the Company's medium-term Business Plan and strengthen the foundations needed to continue generating economic value. The project continued in 2021 with periodic and detailed assessments and reached a very important milestone for future strategies: namely, the setup of the Sustainability Governance.
Following the issuance of the Corporate Governance Code for Listed Companies, Elica decided to adapt its sustainability governance model so that sustainable success is now a fundamental objective and stakeholders have a say in corporate decision making. With the entry into force of Legislative Decree No. 254, and with the involvement of the Control, Risks and Sustainability Committee (CRSC) and the Board of Statutory Auditors, our organisation has evolved as regards sustainability issues and Non-Financial Reporting. In 2021 we also strengthened our sustainability governance with the establishment of the Sustainability Board.
Elica's current sustainability governance model is structured as follows:
– Sustainability Board: comprising the main corporate and business functions, it meets periodically and assesses strategic and operational sustainability-related proposals. It also reviews and validates the draft Consolidated Non-Financial Report and defines stakeholder engagement strategies and the contents of the sustainability plan;
– Sustainability Manager: calls, accepts proposals and reports to the Sustainability Board on ESG priorities.
The centrality of the individual and of the social and environmental habitat in which the individual lives is thus key to the development of the strategies implemented by the Group, which as part of its continuing focus on excellence seeks to optimise and pursue sustainable growth to the fullest possible extent, in the view that such growth is strategic to the creation of long-term social and economic value.
While the COVID-19 health emergency resurfaced in two specific waves in 2021, the Group's operational activities were not particularly affected by the restrictions, which continued to mainly affect travel or opportunities to meet and gather with customers, suppliers and consultants.
Travel between sites in different countries resumed in July, albeit to a limited extent and only for activities that could not be performed remotely. Access to Group production sites and offices was ensured by a range of control and containment action designed to safeguard the health of employees and business operators. Thanks to multiple infection prevention measures - often the result of the introduction of corporate protocols in addition to those instituted at government and local levels - many in-person audits could be conducted by certification bodies and customers, whereas in 2020 they were performed only remotely.
As regards the assessment of risks related to pandemic events, in the early stages of the emergency Elica promptly (in March 2020) updated its Risk Assessment Document and has since kept it constantly updated, in compliance with the requirements of government decrees (in May 2020 and June 2021). Pandemic risk is also included and evaluated in the risk assessment and management model developed as part of Elica's ERM (Enterprise Risk Management).
Centralised management with major suppliers and management with purchasing organisations close to production sites in the various countries mitigated the effect of shortages in raw materials and components that followed the sudden spike in demand which, in some sectors, disrupted supply. As a result, we can confirm that these conditions did not produce significant production stoppages and have not had any negative effects on the level of service offered to customers.
Financial communication activities and discussions with investors and analysts were also carried out on a regular basis through quarterly conference calls and participation in numerous meetings, organised as Virtual
Meetings.
Impacts of the COVID-19 pandemic
who coordinates a team of 6 to 10 people.
– Leveraging the competence and analytical approach brought to our organisation by new human resources: in early 2021 Elica introduced the new "Energy Manager", one of whose main objectives is to support the Group's companies in their search for technical and methodological solutions to create and achieve important energy efficiency objectives, including an ever greater use of renewable energy, as well as an increasingly pressing need not only to contribute to the economic sustainability of the business, but also to respond to the specific requirements of
– Implementing constant monitoring of all process activities and possible interferences with workers of third-party companies operating on the Group's premises. Continue the active involvement of people who come to the workplace every day. Constantly collect new data from the internal reporting system and increase internal audits coordinated by the Corporate EHS function. It is these continuous improvement activities that led to a noteworthy decline in the number of accidents and in the levels of risk to personal safety during 2021. This is the result of the gradual extension of Management Systems certified to ISO 45001:2018 standard, and which will continue in 2022 with the certification of the
– Sharing, listening, pooling knowledge and expertise to strengthen dialogue and collaboration with the world of academia. Doing so in this particular historical moment in which common ideas, synergies but also differences can contribute to making businesses more sustainable and offer new career development opportunities to young people. With this in mind, in 2021 Elica collaborated with the Marche Polytechnic University in relation to two topics of significant importance both for the
Company and the students:
• May - Project Work entitled "Sustainability as a business tool: an important competitive advantage", included in the Business Marketing Course (Economics and Management - Master's Degree).
• November - Talk to students on the "Sustainability, Non-Financial Reporting and Assurance" course (ASEC - Management of Sustainability and Circular Economy, Master's Degree).
In line with the contents of this Non-Financial Report, Elica has provided for the development and monitoring of a structured ERM (Enterprise Risk Management) model. Specifically, the ERM model adopted by Elica provides for integration with sustainability issues (including those related to climate change) to improve the identification of risks and opportunities, creating a reliable model for decision-making, strategic planning and improving business processes.
The Group has considered the effects that climate change could have on the business and, likewise, the effects that the Group could have on climate change. Due to the nature of its activities and the geographical location of its assets, and based on the environmental management systems at its production sites or because of the procedures it has in place for managing events linked to climate change, at present there are no elements that could significantly affect the Group's business or which would lead to the need to take specific immediate action.
The recent establishment of the Sustainability Board goes even further towards identifying the objectives that can be pursued and the action necessary to reduce any climate impact of the Group's activities (particularly those that generate atmospheric emissions) or the products it markets.
Also in pursuit of continuous improvement, the Group will continue to analyse the most relevant sustainability risks (those related to the areas identified by Legislative Decree No. 254/2016, in line with that already defined and shared with the main control bodies regarding general risks faced by the Company). Specifically, it will extend its analysis of climate change risks, in line with the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD) and with the recommendations provided by the European Securities and Markets Authority (ESMA).
Climate Change
The Group operates in a multinational setting and its products, services and local activities are capable of influencing various entities that in turn – through their roles, activities and expectations – may directly or indirectly influence the Group's performance and have a significant impact on the organisation's decisions.
Periodic stakeholder mapping is the result of a multi-disciplinary approach that involves the contribution of all top management.
By way of ongoing dialogue, dedicated meetings in conjunction with corporate or industry events, the cooperation of dedicated collaborators, press releases, surveys, etc., the Group continuously reinforces its commitment to improvement and to confirming and extending the approaches that prove to be the most encouraging over time.
The table below summarises the Group's main stakeholders.
The following table shows the main methods of communication, listening and engagement that Elica implements with its main stakeholders to meet their requirements and expectations in a satisfactory manner:
| Main stakeholders | Main communication, listening & engagement channels |
Summary of main expectations as regards Elica |
Main stakeholders | Main communication, listening & engagement channels |
|---|---|---|---|---|
| Shareholders, Board of Directors, Chief Executive Officer, General Management (BU Managing Directors), Control, Risks and Sustainability Committee (CRSC) |
• Chief Executive Officer and BU Managing Directors: Business Review • Shareholders: Road shows, Shareholders' Meeting, institutional reporting • BoD: Board meetings • CRSC committee meetings |
• Shareholders: Business Continuity and Performance. Return on investment • Chief Executive Officer, BU Managing Directors, BoD, CRSC: Business continuity and performance, business sustainability strategies over M/L term, company fair value recognition. |
Consumers - End customers | • Direct contact (events, dedicated company meetings) • Trade fairs and sector events • Showtrailers • Institutional press releases • Advertising campaigns • Service |
| Employees | • Group Policies and Company Procedures • Corporate organisational communications • Target allocation process and performance evaluation (PM - Performance Management Review) • Development of training plans • Corporate rewards process (MBO) • Corporate Intranet and Information |
• Evolution of working roles over the long term • Clarity in procedures to be implemented • Adequate training • Availability of adequate resources • Workplace wellbeing |
The community and the local area |
• Press releases • Pre-/during-/post-event communication system • Participation in meetings and events • Support for cultural activities • Engagement initiatives |
| Systems • Vittoria RMS Portal • "Suggestions" and "EHS Cards" system • Internal audits • Company welfare • Non-Financial Report |
• Health & Safety in the workplace • Adequacy of workloads • Clarity in roles and objectives • Professional growth |
Suppliers and partners | • Direct contact • Sector events • Technical discussions |
|
| Trade associations | • Direct contact, Press releases | • Compliance with participation requirements • Transparent and accurate information • Competence and professionalism • Trustworthiness regarding sensitive data • Compliance with the principles and codes of the relevant sectors |
Media | • Direct contact and interviews • Press releases • Publications • Pre-/during-/post-event communications |
| Local Institutions and regional governments |
• Press Releases • Formal publications (corporate governance report, NFR, etc.) • Reporting in implementation of provisions • Locally required institutional channels • Institutional roundtables |
• Availability and competence of company figures involved in activities in question • Communication transparency • Compliance with Applicable Laws • Adequacy of the internal crime prevention system as per Legislative Decree No. 231/2001 |
Trade Unions | • Periodic meetings • Roundtables |
| Investors and financial operators | • Consolidated Financial Statements • Roadshows • Shareholders' Meeting • Press releases • Financial reporting • Ratings |
• Transparency, timeliness and parity of information • Positive share trends • Ability to pursue sustainability strategies (ESG Strategy) • Achievement of business objectives |
Scientific partners: Universities and research centres |
• Joint development of protocols/projects • Direct communication • Sharing of knowledge and skills through theme-based events. |
| Summary of main expectations as regards Elica |
|---|
| • Business continuity • Performance excellence • Innovative, reliable and safe products • High levels of Quality and Service • Service effectiveness and efficiency • Transparent information • Trustworthiness in the treatment of sensitive data |
| • Provision of appropriate procedures to contain environmental impacts and to protect the local area • Encouraging the development of social/ economic/environmental conditions • Environmental emergency preparedness and support |
| • Business continuity and profitability • New opportunities • Compliance with contractual terms • Information transparency |
| • Transparency and accuracy of information. • Develop an ongoing, trusting relationship • Company reputation • Presentation of innovative products |
| • Protection of workers and compliance with contractual conditions • Attention to feedback • Participation in improving safety conditions in the workplace |
| • Collaboration stability • Identification of trends in product technological innovation and business process management • Enhance innovative curricula • Provide career opportunities for young people |
The Group is managed, according to the traditional governance system, by a Board of Directors with a central role in identifying and achieving the Company's objectives.
The Board of Directors, made up of 7 members whose mandate will expire when the 2023 financial statements are approved, is made up as follows:
For further information on the experiences and competences of the Directors and members of the committees, please refer to the Corporate Governance and Ownership Structure Report and to the paragraph regarding GRI 102-22 and GRI 102-28 of this document.
Elica Group is aware of the importance of correct information as indispensable for building a relationship of trust with the financial community. The Investor Relations department and top management maintain an ongoing dialogue with investors and financial analysts in compliance with the criteria of transparency, timeliness and parity.
Despite the challenges arising from the global spread of the COVID-19 health emergency, financial communications and interaction with investors and analysts continued normally also in 2021. More specifically, interactions with the financial community involved the organisation of quarterly conference calls for the presentation of financial results, as well as participation in numerous virtual meetings. In particular, the Group participated in the Star Conference (held in March and October 2021), virtual events which were organised by Borsa Italiana, the Virtual Roadshows organised by Intermonte SIM and Intesa Sanpaolo IMI in May, June and December 2021, and Intermonte's Eccellenze Made in Italy in September. Therefore, opportunities for communication and interaction with the markets were no fewer than in 2020, and actually increased, thereby ensuring constant updates for the financial community in this period of great uncertainty.
The website also remains a key tool for providing timely information. Indeed, the Group's website is promptly updated to coincide with the presentation of results and other market communications.
Stock coverage was guaranteed during the year, as it was in 2020, by three primary brokers. The Elica Group closed 2021 with a market capitalisation of approximately Euro 225.5 million (average market capitalisation in December), up from 2020's Euro 193.7 million.
The Group's Financial Media Relations department guarantees external communications with national, local and international media and the correct disclosure of corporate messages to the relevant public, thus pro-
tecting the reputation of Elica Group's various activities. The department also monitors off-line and on-line traditional media in order to intercept any information of interest to the Group.
The Group's financial communications are managed by controlling and monitoring all communication processes contemplated by the Italian CFA and by the communications and transparency best practices adopted by
other listed companies. are subdivided in:
In particular, the financial communications carried out by the Group
Mandatory communications: the disclosure of periodic and price-sensitive financial data to stakeholders and the general public as required by law and relevant authorities (e.g. Borsa Italiana and Consob);
Business communications: aimed at promoting the Company's core activities, including opportunities to enhance the visibility and reputation of the Group, such as interviews with top management published via
major media outlets.
In 2021, financial communication activities also included the management and issue of press releases to coincide with the publication of periodic data, such as quarterly, half-yearly and yearly financial statements, price-sensitive business, governance and shareholder communications, and business press interviews and article contributions.
Assessment of external relevance
Assessment of internal relevance
The Materiality Analysis has guided the Elica Group in the choice of to pics to be covered, so as to give full and clear representation of the extent of the financial, environmental and social impacts of the Group's activities. Again in reporting on the year ending December 31, 2021, materiality is the key to understanding the sustainability of our Group.
The workgroup, created at the corporate level, has internally identified the tools, sources and criteria for assessing a very wide range of topics, which are measured according to various metrics. All the topics on which to report were identified in a balanced matter through a combined assessment of:
– the external relevance of the topics; and
– the internal relevance of the topics.
(All information of a general nature 8 regarding the Group – assumed to be highly material to stakeholders in the interest of a complete, clear picture of the overall organisational structure of the Elica Group, from whi ch the topics subject to reporting arise organically – have been excluded from the periodic materiality analysis process.)
In order to identify the topics that may influence stakeholders' deci sions regarding the Elica Group, the frequency of the indirect expressions of interest by the stakeholders in sustainability topics was measured using 3 main tools:
analysis of external press releases;
benchmarking, i.e. analysis of a panel of peers deemed representative, including key customers and competitors;
surveys of organisations responsible for sustainable reporting or stakeholder monitoring with a focus on the needs identified in the
sector concerned.
A team representing all company departments at the corporate level collectively assessed, in various meetings, all relevant topics in the light of the impacts of the Group's activities and all topics identified through the external priority analysis, assigning them an internal relevance score, with each topic either linked to a reporting standard, where possible, or analysed to identify its core for reporting purposes, where no specific GRI standard was applicable. Issues highlighting the expectations of stakehol ders with a noteworthy degree of dependence on the Group and with a significant ability to influence its business strategies were also discussed and assessed.
The issues thus identified were further assessed and integrated by the team and by Company management with regard to any clearly defined requests from specific categories of stakeholders and in relation to the Group's priorities and strategic objectives.
On conclusion of the meetings, the Elica Group's Materiality Matrix for 2021 took shape, comprising 18 GRI topics and 4 "custom" topics (a material topic or impact that was not adequately represented in the GRI Standards), relating to high priority topics, whether internal or external, and topics with at least medium priority for both analysis guidelines and as represented by the matrix in the following table:
| E C N A V E L RI L A N R E T X E |
High | GRI 201 GRI 404 GRI 301 GRI 405 GRI 302 GRI 406 GRI 305 GRI 416 GRI 306 GRI 417 GRI 307 Innovation GRI 401 ECO Design GRI 403 |
||||
|---|---|---|---|---|---|---|
| Medium | GRI 204 GRI 206 GRI 303 GRI 412 GRI 413 GRI 415 GRI 419 |
GRI 308 | GRI 205 GRI 207 GRI 414 GRI 418 Financial Data |
|||
| Low | GRI 304 GRI 408 GRI 409 GRI 411 GRI 407 GRI 410 Product end life |
GRI 202 GRI 203 GRI 402 |
After sales service | |||
| Low | Medium | High | ||||
| INTERNAL RILEVANCE | ||||||
| The 2021 Matrix was reviewed and approved by the Board of Directors on October 27, 2021, following review by the Control, Risks and Sustainability Committee at its meeting held on October 21, 2021. |
The 2021 Matrix was reviewed and approved by the Board of Directors on October 27, 2021, following review by the Control, Risks and
62
| Material Topic | No. GRI Standard | Name of the GRI Standard |
|---|---|---|
| Direct economic value generated and distributed | 201 | Economic performance |
| Transactions assessed for risks related to corruption | 205 | Anti-corruption |
| Approach to tax | 207 | Tax |
| Materials used by weight or volume | 301 | Materials |
| Energy consumption | 302 | Energy |
| Atmospheric emissions | 305 | Emissions |
| Waste management and production | 306 | Waste |
| Compliance with environmental requirements | 307 | Environmental compliance |
| Suppliers assessed according to environmental criteria | 308 | Supplier environmental assessment |
| New employee hires and employee turnover | 401 | Employment |
| Work-related injuries | 403 | Occupational health and safety |
| Training and education | 404 | Training and education |
| Diversity of governance bodies and employees | 405 | Diversity and equal opportunity |
| Incidents of discrimination and corrective actions taken | 406 | Non-discrimination |
| Suppliers assessed according to social criteria | 414 | Supplier social assessment |
| Customer health and safety | 416 | Customer health and safety |
| Requirements for product and service information and labeling |
417 | Marketing and labelling |
| Violation of customer privacy | 418 | Customer privacy |
| Innovation | NON GRI | |
| Eco Design | NON GRI | |
| Financial Data | NON GRI | |
| After-sales service | NON GRI |
Note: "NON-GRI" means that the indicator has been created by the Group in order to represent a topic or material impact that was not found to be adequately represented in the GRI Standards.
The following is a list of the topics found to be material in the materiality analysis process, together with the relevant GRI standard, where applicable, according to which they have been reported. An appropriate reporting scope was then set out for each topic, as specifically described for each indicator reported on below.
Several changes need to be made to the 2020 Non-Financial Report:
In the table "non-hazardous waste produced by disposal method" (page 93 of the 2020 Non-Financial Report), the values change as follows:
The 2020 figure for the "Reuse" disposal method drops from 54 tonnes to 0 tonnes;
The 2020 figure for the "Recycling" disposal method increases from 13,952 tonnes to 14,239 tonnes;
The 2020 figure for the "Landfill" method of disposal decreases from 720 tonnes to 719 tonnes.
The "Total" figure therefore increases from 14,727 tonnes to 14,958 tonnes (see summary table):
| Non-hazardous waste produced by disposal method | ||||
|---|---|---|---|---|
| unit | 2020 | 2019 | ||
| Reuse | 0 | 58 | ||
| Recycling | 14,239 | 13,330 | ||
| Landfill | t | 719 | 647 | |
| Total | 14,958 | 14,035 |
In the table "Level of creation of patents for technical or technological solutions invented by the organisation" (page 70 of the "2020 Non-Financial Report"), the figures change as follows:
The 2020 figure for "Number of overall active documents" increases from 288 to 351
The 2020 figure for "Percent of existing patents generated during the reporting year" decreases from 2.78% to 2.28%
ECONOMIC AND FINANCIAL SOLIDITY AS A SHARED VALUE.
(FINANCIAL HIGHLIGHT)
Elica reports consolidated revenue of Euro 541.3 million for 2021, up 19.6% (20.6% at like-for-like exchange rates and consolidation scope). The growth in sales was driven both by higher volumes and a positive price-mix effect.
Adjusted EBITDA was Euro 57.1 million, significantly up on 2020 (Euro 42.2 million), with a margin of 10.5%, compared to 9.3% in the previous year, thanks to revenue growth driven by volumes, a positive price mix and the control of SG&A costs which offset higher raw material costs, whose impact was more apparent in Q4.
The 2021 results confirm Elica's medium-term trajectory and its commitment to ever-greater value creation. Despite an increasingly critical supply chain and production cost situation, the Group implemented strong discontinuity actions, including by means of a strategic acquisition in the Motors Division.
On July 2, the acquisition was completed of E.M.C. and CPS, European Motors segment enterprises with a product portfolio that complements that of FIME, allowing us to tap into significant international expansion and new business development opportunities and a perfect fit with Elica's motor business growth trajectory. Following the acquisition of EMC and CPS, the Group began a reorganisation of the Motors BU operations to ensure singular and complete business management and reporting. For this reason, the Motori Fime business unit held by Elica S.p.A. was identified and transferred to EMC FIME S.r.l. with effect from January 2022.
In September, 19% of the share capital of the Indian subsidiary Elica PB India Private Ltd. was sold to Whirlpool of India Limited, together with the other Indian minority shareholders who sold a further 19% stake. Upon completion of the transaction, Whirlpool of India Limited will hold approx. 87% of Elica PB India Private Ltd., while Elica S.p.A. and the group of other Indian minority shareholders will retain a holding in the Indian company with a stake of approx. 6% each. The Elica Group therefore remains a shareholder of Elica India, confirming the strategic partnership between Elica and Whirlpool. This transaction underscores the strategic importance of the Indian market for the Elica brand and has a positive impact on the Group's EPS from 2022 thanks to a constant flow of Royalties for the coming years, in addition to guaranteeing in 2021 cash to further support the Cooking segment's growth projects.
December saw the positive conclusion of the dispute concerning the business plan for the reorganisation of the Italy Cooking area. Thanks to this agreed path, established through negotiation, 150 employees will be involved in the reorganisation and the pre-established business plan competitivity objectives will be achieved. The agreement does not include redundancies, only involving voluntary and incentivised departures. Surplus personnel will be managed through early retirement and relocation to other major companies in the area.
In this environment, the net financial position has significantly impro-
ved, which - also thanks to the Euro 22 million cash from the Indian transaction - will allow for the stepping up of the Cooking market growth projects linked to products and geographic expansion which are currently key to the Group's future market development.
The Group confirms the pillars identified to support its strategy: – Forecast organic growth in 2022 (~5-6%) amid a slight increase in demand. The commitment to create value despite the still critical raw materials situation (both in terms of availability and cost inflation) remains
– Continuous improvement in the net financial position, supporting investments in production capacity, innovation and possible M&A's.
Consolidated net revenue
Elica's contribution
The EU Taxonomy Regulation (EU Regulation 2020/852 dated June 18, 2020) provides a unified system for classifying economic activities that can be considered environmentally sustainable.
Specifically, for the purposes of this Regulation, in order to qualify as environmentally sustainable (or "eco-sustainable"), an economic activity must jointly satisfy a series of conditions:
– contribute substantially to one or more of the six environmental objec - 9 set forth in Article 9 of the Regulations;
– comply with the technical screening criteria set down by the Commis sion for each individual environmental objective;
– do not significantly harm other environmental objectives (the "Do No
– be carried out in compliance with minimum safeguards (in line with OECD guidelines and UN/ILO Guiding Principles on Business and Hu -
Pursuant to the regulatory requirements set out in the Delegated Regu lation relating to Article 8 of EU Regulation 2020/852, the Elica Group is required to include in its Non-Financial Report (NFR) information on how and to what extent its business is associated with eco-sustainable eco nomic activities within the meaning of the EU Taxonomy.
For this first year of implementation, disclosures should include the share of taxonomy-eligible10 and taxonomy-ineligible business activities within its revenues, capital expenditure and total operating expenditure incurred.
The following section sets out how the Group assessed compliance with Regulation (EU) 2020/852 and the table with the required quantitative KPIs.
Because this is the first year of implementation of a new international standard, all criteria and assumptions made and included in this section are based on currently available information and requirements, which may be subject to future reassessment.
Compared to the roadmap laid out by the European Commission, at the date of publication of this document only the Delegated Regulation related to the first two environmental objectives (climate change mitiga tion and climate change adaptation) have been published. These provide a description of the economic activities eligible for EU Taxonomy and the related technical screening criteria. It should therefore be noted that the scope of analysis of the data included in this report refers only to these two objectives.
To determine the eligibility of economic activities, both the Nomencla ture statistique des Activites economiques dans la Communaute Europe enne (NACE - Statistical Classification of Economic Activities in the Euro pean Community)11 and the descriptions of activities given within Annex I and Annex II of the Delegated Regulation were analysed.
The Elica Group is the leading global manufacturer of range hoods and hobs and of motors for domestic ventilation. Only the activities related to the production of range hoods and hobs
9. climate change mitigation; b) climate change adaptation; c) sustainable use and protection of water and marine resources; d) transition to a circular economy; e) pollution prevention and control; and f) protection and restoration of biodiversity
and ecosystems.
10. Taxonomy-Eligible" economic acti vity means an economic activity descri bed in the Delegated Regulation ("Cli mate Delegated Act" and "Environmental Delegated Act").
11. The NACE code is a general classi fication system used to systematise and standardise the definitions of the eco nomic/industrial activities of the mem ber States of the European Union. The classification was first introduced in 1970 and then revised over the years, culmi nating in the latest revision Regulation (EC) 1893/2006. Each national statistical office has formulated a conversion table to which reference should be made in order to translate NACE codes automati cally at national level. In Italy, the Istituto Nazionale di Statistica (ISTAT - Italian National Institute of Statistics) translates NACE codes into ATECO (Classification of Economic Activity) categories.
(Cooking BU) were considered as Taxonomy-Eligible, while the activities of the Motors BU were considered ineligible, since no perfect correspondence with Annexes I and II of the Delegated Regulation could be identified.
The eligible activities carried out by the Group can be traced back to economic activity "3.5 Manufacture of energy efficiency equipment for buildings" which contributes - as an enabling activity - to the objective related to climate change mitigation (considered the predominant objective).
Pursuant to the regulatory requirements found in the Delegated Regulation relating to Article 8 of Regulation 2020/852, the following table illustrates the share of economic activities eligible and ineligible for the Taxonomy within the framework of revenues, capital expenditure and total operating expenditure.
The values provided reflect a conservative approach to interpreting the new Regulation. For further details regarding the analysis of economic activity and the composition of quantitative performance indicators, please refer to the section "Further information and methodological notes".
For this first year of application, the Elica Group has decided to carry out an initial analysis of the requirements necessary to align its economic activities to the EU Taxonomy ("Taxonomy-Aligned" activities). The main substantive contribution criterion relating to the activities identified as eligible has been taken into account, namely:
Home appliances, space heating, domestic hot water, cooling and ventilation systems classified in the two highest populated energy efficiency classes in accordance with Regulation (EU) 2017/1369 of the European Parliament and of the Council and Delegated Regulations adopted pursuant to that Regulation;
In order to meet this criterion, the Group's product portfolio was analysed, identifying products belonging to energy classes A++ and A+. According to this preliminary analysis, the share of revenues related to the products listed above is approximately 5% of the Group's total net revenues as of December 31, 2021.
Aware of the regulatory evolution of the EU Taxonomy and the possible development of application practices for it, the Group may evaluate the possibility of further refining the methodology adopted for this first year of reporting.
| Eligible under the European Taxonomy |
Ineligible under the European Taxonomy |
|
|---|---|---|
| Turnover | 84% | 16% |
| Capital expenditure | 35% | 65% |
| Operating expenditure | 74% | 26% |
The numerator of KPIs relating to turnover refers to the turnover of the Cooking BU net of any inter-company transactions. The denominator, on the other hand, considers the value of the Group's net revenues as of December 31, 2021, as indicated in the consolidated Income Statement.
Capital expenditure relates to increases in tangible assets, including land and buildings, plant and machinery, industrial and commercial equipment, tangible assets in progress and other assets; it relates also to increases in intangible assets, including development costs, patents, concessions, licences, trademarks and software, other intangible assets and other assets in progress; and increases in rights-of-use of land and buildings, plant and machinery and other leased assets. The values of business combinations (IFRS 3) have also been included as per the legislative definition. Only values relating to the Cooking BU were considered in the numerator.
The denominator of the performance indicator for operating expenses includes the main cost items related to maintenance costs, maintenance personnel costs, patent costs, industrial technical consultancy and non-capitalised R&D personnel costs. Only values relating to the Cooking BU were considered in the numerator.
All amounts for capital expenditures and operating expenses were considered net of any inter-company transactions.
Information on the creation and distribution of economic value provides a basic indication of how Elica creates wealth for its stakeholders.
The economic value generated and distributed expresses in monetary terms the relationship between Elica and the socio-economic system, measuring the economic impact and the ability to create and distribute wealth among the main categories of Stakeholders such as personnel, shareholders, lenders, the community and the public administration. The Group generated an economic value in 2021 of over Euro 565 million, while distributing over Euro 512 million.
The share of the economic value of reclassified operating expenses amounts to Euro 402 million and mainly includes costs incurred for the purchase of raw, ancillary and consumable materials and goods, service costs, rent, lease and similar costs, the remuneration of Directors and Statutory Auditors and other operating expenses. The share of economic value distributed to personnel and collaborators amounts to Euro 100 million and represents 18% of the overall economic value generated. Economic value of Euro 7 million was distributed to the Public Administration during the year. Providers of capital were allocated Euro 3 million due to financial expenses. Euro 142 thousand was allocated to the community in the form of donations, sponsorships, contributions and membership fees. This amount represents an additional direct and indirect impact on local development for the benefit of its communities. Finally, an economic value of Euro 53 million was retained by the Group, mainly in terms of the profit for the year allocated to reserves, amortisation and depreciation and to provisions and write-downs.
| Performance Indicators Statement determining the economic value generated, distributed and retained |
|||||
|---|---|---|---|---|---|
| Euro thousands | 2021 | 2020 | |||
| Economic value directly generated by the Group | 564,980.00 | 460,480.23 | |||
| Economic value distributed by the Group | 512,054.22 | 427,449.16 | |||
| of which Operating Costs | 401,746.99 | 335,236.00 | |||
| of which employee wages and benefits | 99,878.91 | 85,385.34 | |||
| of which Public Administration remuneration | 7,330.45 | 2,899.54 | |||
| of which paid to lenders | 2,955.88 | 3,772.29 | |||
| of which distributed to shareholders | - | - | |||
| of which community remuneration | 142.00 | 156.00 | |||
| Economic value processed by the Group | 52,925.78 | 33,031.07 |
Scope: Group
PUBLIC ADMINISTRATION
0,58% LENDERS THE COMMUNITY 0,03%
21,54% OTHER
OPERATING COSTS
An organisation's tax approach defines how the organisation balances tax compliance with its business activities and the ethical, social and sustainable development expectations of its stakeholders. The Company's tax compliance and approach has always been guided by transparency and legality. The Group is keenly focused on full compliance with current tax regulations in order to appropriately respond to stakeholder expectations, while also contributing, again in compliance with law, to the sustainable development processes of the countries and communities in which it operates through the payment of taxes. The Group approach to tax also centres on taking opportunities provided by law to support, in particular, the commitment to innovation and the pursuit of continued excellence, for example through processes linked to the research and development tax break and the benefits under the "Industry 4.0" programme. The Group in this context operates in full collaboration, dialogue and transparency with the Tax Agency in Italy and the other relative tax agencies in the countries in which it operates.
This approach is operationally evident in the full co-operation undertaken with the relevant financial authorities. In order to ensure the continuous monitoring of the tax measures and to ensure regulatory compliance, the Group has local Tax Departments to identify, manage and mitigate tax risks/opportunities, in the wider context of the Group's finance department, which ultimately reports to the Board of Directors. The channels made available by the Group to encourage the reporting of any illegal or suspicious conduct in tax matters, as well as the communication of any concerns in this regard, are important for mitigating risk factors in the tax area. These include the reporting channels available for the communication of relevant unlawful conduct pursuant to Legislative Decree No. 231/2001 ("whistleblowing"). Lastly, the Elica Group's Consolidated Financial Statements are regularly audited by the independent audit firm and transparently report the Group's tax management.
During the year, transactions between the Group companies, the Parent and the subsidiaries took place. All transactions were conducted on an arm's length basis in the ordinary course of business.
With regards to transfer prices - applied to transactions between Elica S.p.A. and Elica Group Polska and Elicamex - specific Ruling agreements were signed with the National Tax Authorities. New ruling agreements are being drawn up with the Italian tax authorities to govern further inter-company transactions.
| Company | Country | Revenue from third parties |
Intragroup revenue |
Profit before taxes |
Income taxes paid |
Income taxes as per Income Statement |
No. employees (excluding temporary workers) |
|---|---|---|---|---|---|---|---|
| Elica SpA | Italy | 319,345 | 83,264 | 12,920 | -447.58 | -2,798.73 | 1,073 |
| Airforce | Italy | 30,514 | 277 | 1,101 | -60.53 | -320.57 | 105 |
| EMC Srl - CPS Srl | Italy | 14,167 | 3 | 63 | -821.16 | 30.13 | 50 |
| Elica Group Polska Sp.z o.o | Poland | 2,836 | 117,436 | 1,633 | -78.09 | 268.63 | 689 |
| Elica France S.A.S. | France | 23,330 | 75 | 162 | -94.27 | -91.27 | 14 |
| Elica Gmbh | Germany | 9,581 | 24 | 128 | 0.00 | 0.00 | 14 |
| Elica Trading LLC | Russia | 12,347 | 54 | 320 | -99.98 | -81.90 | 27 |
| EUROPE | 412,120 | 201,132 | 16,327.05 | -1,602 | -2,993.70 | 1,972 | |
| Zhejiang Elica Putian Electric Co. Ltd |
China | 2,845 | 7,352 | 223 | - | - | 120 |
| Ariafina Co. Ltd | Japan | 24,749 | 20 | 5,097 | -1,578 | -1,726 | - |
| Elica PB India Private Ltd. | India | 30,141 | 44 | 6,136 | -2,630 | -1,563 | - |
| ASIA | 57,735 | 7,416 | 11,455 | -4,208 | -3,289 | 120 | |
| Elicamex S.a.d. C.V | Mexico | 71,438 | 22 | 1,254 | -1,561 | -701 | 713 |
| Leonardo Services S.a. de C.V. |
Mexico | - | 5,184 | 277 | -140 | -154 | - |
| Elica Inc. | USA | - | 1,228 | 45 | -9 | -21 | 5 |
| THE AMERICAS | 71,438 | 6,434 | 1,576 | -1,710 | -876 | 718 | |
| Total | 541.293,25 | 29,357.95 | -7,519.11 | -7,158.63 | 2,810 |
| Company | Country | Revenue from third parties |
Intragroup revenue |
Profit before taxes |
Income taxes paid |
Income taxes as per Income Statement |
No. employees (excluding temporary workers) |
|---|---|---|---|---|---|---|---|
| Elica SpA | Italy | 266,296 | 73,502 | -5,882 | 0 | 2,707 | 1,102 |
| Airforce | Italy | 25,544 | 390 | 764 | 0 | -212 | 108 |
| EMC Srl - CPS Srl | Italy | n.a. | n.a. | n.a. | n.a. | n.a. | n.a. |
| Elica Group Polska Sp.z o.o | Poland | 2,816 | 96,797 | 1,778 | 72 | -54 | 622 |
| Elica France S.A.S. | France | 18,136 | 29 | 185 | 40 | -73 | 15 |
| Elica Gmbh | Germany | 8,087 | 48 | -314 | 0 | 0 | 28 |
| Elica Trading LLC | Russia | 10,955 | 62 | 528 | 51 | -127 | 15 |
| EUROPE | 331,834 | 170,829 | -2,941 | 164 | 2,241 | 1,890 | |
| Zhejiang Elica Putian Electric Co. Ltd |
China | 3,814 | 6,512 | -5,064 | 0 | 0 | 128 |
| Ariafina Co. Ltd | Japan | 25,309 | 20 | 5,071 | 1,832 | -1,717 | - |
| Elica PB India Private Ltd. | India | 31,827 | 109 | 7,092 | 2,159 | -1,577 | 451 |
| ASIA | 60,950 | 6,641 | 7,098 | 3,990 | -3,294 | 579 | |
| Elicamex S.a.d. C.V | Mexico | 59,504 | 56 | 4,282 | 607 | -1,226 | - |
| Leonardo Services S.a. de C.V. |
Mexico | 0 | 9,962 | 483 | 221 | -311 | 769 |
| Elica Inc. | USA | 0 | 887 | 34 | 18 | -22 | 4 |
| THE AMERICAS | 59,504 | 10,905 | 4,799 | 846 | -1,559 | 773 | |
| Total | 452,288.00 | 8,956.00 | 4,999.80 | -2,612.00 | 3,242 |
Figures in Euro thousands at 31/12/2021
The number of employees refers to the figure at December 31, 2021, the date on which Elica PB India Private Ltd. ceased to be part of the Group.
Figures in Euro thousands
12. Management Operation System
The technological innovation activity that Elica carries out at the service of the entire Group seeks to continuously generate a set of solutions (components, modules and techniques) validated from a performance and safety point of view, to be used for the generation of new and competitive products/services.
The model for introducing a technological solution has been called New Technology Introduction (NTI).
The NTI focuses its key priorities on general product features, such as: Low Noise, Air Treatment and Space Management. In addition, a cross-cutting theme called "Sensors and Connectivity" has been included. For each of them, the aim is to improve or generate new features while at all times having the consumer as the central consideration.
Research and innovation are incorporated into the processes of the R&D area of the business management system MOS12; various types of monitoring tools are applied and all information is recorded.
The NTI is divided into six phases of progress and oversight:
During their time in the system, all projects may be halted at any phase of development if performance is not consistent with objectives, the cost of the final product or of development is too high or it does not meet usability, safety and aesthetic requirements.
Progress through the various phases is monitored using the following tools:
projects undertaken by EPL Research & Innovation and in the number of projects effectively carried out in the business. On the one hand, the effect of the pandemic and the cancellation of FTK2020 have curbed many R&D activities, while on the other, the decrease in resources has necessarily led to a reduction in the number of activities.
| Performance Indicators Total number of innovation projects effectively implemented into the business and implementation index |
||||
|---|---|---|---|---|
| unit | 2021 | 2020 | ||
| Innovation projects implemented in the business | 6 | 8 | ||
| Innovation projects developed | 49 | 59 | ||
| Number of persons employed in the project | No. | 7 | 9 | |
| Innovation implementation effectiveness rate | 12% | 14% |
| Level of creation of patents for technical or technological solutions invented by the organisation | ||||
|---|---|---|---|---|
| unit | 2021 | 2020 | ||
| New patent applications filed | 6 | 8 | ||
| Number of overall active documents (granted and subject to evaluation) |
No. | 349 | 351 | |
| Percent of existing patents generated during the year | 1.72% | 2.28% |
Scope: Elica S.p.A. (Cooking BU) for the entire Group since the activity is performed for the benefit of all subsidiaries
Scope: Elica S.p.A. (Cooking BU and Motors BU) for the entire Group since the activity is performed for the benefit of all subsidiaries
Elica Group considers it a priority to maintain the high quality of its offering of products and related services, in response to the evolving needs of consumers and in line with the highest standards on the market. This priority is an integral part of maintaining loyalty and protecting the company's image and reputation, in accordance with the Group's Ethics Code. In this regard, the renewed commitment to a structured and geographically distributed organisation was behind the updates to the entire Customer Support process and all related aspects.
The need for an After-Sales process is thus synonymous with "Customer Orientation", going far beyond mere legal obligations. For this reason, a more structured After-Sales organisation came into play in 2019 with a new team capable of responding quicker and more decisively in resolving customer issues.
The contact centre network, outsourced from our Service Providers or directly implemented in Italy and Spain, employs a dedicated Customer Relationship Management system to manage support requests from end-consumers and to provide product information and continuous support, in order to constantly improve the customer journey. Since 2021, this activity has also extended to Germany.
The Technical Support Service is offered by Service Providers throughout Europe and support centres directly managed by Elica After-Sales (180 in Italy and approx. 80 in Spain).
The After-Sales department constantly monitors and promotes the service quality of technical support teams and contact centres through regular inspections and dedicated training for Service Provider and Support Centre specialist operators, with traditional courses, on-line training and qualification tests. Special training courses are also organised for the launch of new products.
In 2021 training was provided online only, by making documents and presentations available on the SAAM++ page15 and in-person training was provided to approximately 30 technicians in Germany alone. Additionally, the After-Sales department provides approximately 8 to 10 training sessions per year to call centre operators strictly dedicated to Elica, in order to focus attention on a variety of issues (e.g. updating of the functions of the SAAM++ management system, installation methods, solutions to technical issues, call avoidance). Each technical training session features a formal test and evaluation.
The performance of our Service Providers is constantly monitored using multiple KPIs relating to the management of issues, including in particular:
Service Level: time (in work days) between the customer's first call and the final resolution of the issue.
Speed Of Service: Time (working days) between the first call and the first appointment arranged with the customer.
Right First Time: percentage of technical issues resolved on the first visit to the customer.
15. Specialist after-sales management software
| Performance Indicators | unit | 2021 | 2020 |
|---|---|---|---|
| Service Level:days between the customer's first call and issue resolution |
work days |
14.3 | 13.2 |
| Speed of Service: days between the customer's first call and first customer appointment |
work days |
11.3 | 10.2 |
| Right First Time: % of issues resolved on the first appointment |
% | 77% | 75% |
Scope: Elica S.p.A. for items produced by Elica S.p.A., Elica Group Polska, sold in the EMEA market.
KPIs were down as a result of a slowdown in Service Provider activities at customer sites due to the effects of the Covid pandemic, which meant that work due by 2020 was completed only in early 2021. On the other hand, the indicator related to technical resolution at the customer's premises showed an improvement of around 3%.
16. Customs Trade Partnership Against Terrorism
In order to prevent and contain events that may represent a risk for the commission of corruption offences, Elica has approved an Ethics Code contained in the 231 Organisational Model (in compliance with Legislative Decree No. 231 of June 8, 2001). All forms of corruption, without exception, are prohibited by the Company and its subsidiaries, which have fully implemented the Ethics Code with adjustments, in some cases, to the local situation. The Organisation and Management Model adopted by Elica is based on the following principles:
Compliance with the Ethics Code, which is based on the fundamental principles of legality, honesty, fairness, integrity, confidentiality and transparency, is critical for the prevention of corruption. Just as important are the essential duties of workers and civil, criminal, administrative and contractual legislation.
The Code is available on the corporate website: https://elica.com/corporation/it/corporate-governance/area-231.
La controllata in Messico, paese ad elevato rischio di corruzione, è allineata con i principi di Gruppo e opera in conformità al codice Etico. Ha, poi, ottenuto la certificazione CTPAT16 e si è attivata per ottenere la certificazione OEA (Operador Económico Autorizado) il cui obiettivo è rafforzare la sicurezza della catena di fornitura, identificare le lacune di sicurezza e implementare delle misure di sicurezza specifiche e di best practice.
The subsidiary in Mexico, a country with a high risk of corruption, is aligned with the Group's principles and operates in accordance with the Ethics Code. It then obtained CTPAT certification and is working toward OEA (Operador Económico Autorizado) certification, whose goal is to strengthen supply chain security, identify security gaps and implement specific security measures and best practices.
Generally speaking, there are then efforts within the Group to mitigate this risk, such as implementing specific induction and training programs. Operational, financial and compliance-related audits are also conducted. For each potential irregularity, legal and other consultants are called upon for ongoing support in order to ensure compliance with applicable laws and regulations.
Elica has, in addition, prepared a specific policy, also shared with the various subsidiaries, which expressly states that the purpose of the document is to set out the rules for preventing and combatting corruption, with the ultimate goal of ensuring that all employees and associates are aware of the rules to be followed and the behaviour to be adopted to
17. Merger and Acquisition
acquisition of investments in other companies and Joint Ventures (M&A)17;
recruitment and hiring of Personnel;
accounting records.
avoid involvement in cases of corruption. For tenders, the Policy specifies that the Group's relations with representatives of the Public Administration (P.A.), in all possible forms, must be based on strict compliance with the Anti-Corruption Regulations and may not in any way compromise the integrity and reputation of the Group.
company processes:
In addition to the adoption of the dedicated Policy, various processes have been implemented to prevent and mitigate issues of corruption, including limitation of the use of cash, monitoring of the selection of suppliers and indirect purchases, even if not regulated by specific procedures,
| Processes and Group companies subject to corruption risk assessment | ||||||
|---|---|---|---|---|---|---|
| unit | 2021 | 2020 | ||||
| No. | 5 | 5 | ||||
| 11 | 11 | |||||
| % | 45% | 45% | ||||
| unit | 2021 | 2020 | ||||
| No. | 5 | 5 | ||||
| 11 | 11 | |||||
Scope: Elica S.p.A., Zhejiang Elica Putian Electric Co. Ltd, Elica France S.A.S., Elicamex S.a.d. C.V, Leonardo Services S.a. de C.V., Elica Inc., Elica Trading LLC, Air Force S.p.A., Elica PB India Private Ltd., Elica Group Polska Sp.z o.o, Elica Gmb, EMC FIME S.r.l. (not included in 2020 data)
* The companies who have adopted the 231 Model and/or who undertake audits - even qualitatively - on the matter, are considered as assessed, while the companies which have anti-corruption similar or equivalent policies are not considered as assessed.
** At least one process for each Group company was identified which directly or indirectly seeks to prevent the risk of corruption.
The control of the Group by bodies independent from management is an additional measure for the prevention of offences. Elica S.p.A.'s internal auditing activities serve as a further means of control.
Lastly, the Whistleblower Protection Procedure forms part of the aforementioned prevention system: the employees of both Elica S.p.A. and Air Force have several channels, including a dedicated e-mail address, to report any offence. In Poland and Italy, in addition to a dedicated e-mail address, a multi-purpose box has been made available for making suggestions to improve process and for reporting any irregularities, anonymously or otherwise.
In 2021, no episodes of corruption were detected.
| Communication and training regarding anti-corruption policies and procedures |
unit | 2021 | 2020 |
|---|---|---|---|
| Employees to whom anti-corruption policies and procedures have been circulated |
No. | 2,207 | 2,846 |
| % Employees to whom anti-corruption policies and procedures have been circulated |
% | 67.3% | 87.9% |
| Employees who have received anti-corruption training hours |
No. | 1,045 | 1,146 |
| % Employees who have received anti-corruption training hours |
% | 31.9% | 35.4% |
| Anti-corruption training hours | No. | 1,167 | 1,305 |
| Incidences of declared corruption | unit | 2021 | 2020 |
|---|---|---|---|
| Total number of incidences of declared | No. | 0 | 0 |
Scope: Elica S.p.A., Zhejiang Elica Putian Electric Co. Ltd, Elica France S.A.S., Elicamex S.a.d. C.V, Leonardo Services S.a. de C.V., Elica Inc., Elica Trading LLC, Air Force S.p.A., Elica PB India Private Ltd., Elica Group Polska Sp.z o.o, Elica GmbH, EMC FIME S.r.l. (not included in 2020 data)
All activities other than and/or in addition to mere dissemination of the policy have been considered as training. In order to quantify the figure, when training hours could not be determined, one-half/one hour of training was considered for each employee. Since classification by category is not uniform it cannot be applied and has not been reported.
DESIGN AND TECHNOLOGY FORM THE FILTER THAT WORKS FOR THE PLANET.
18. International standard indicating requirements for an effective Environmental Management System
Our Group has long been committed to viewing the environment as an important – and indeed essential – resource to safeguard and preserve. Elica S.p.A. was one of the first Italian companies to be ISO 1400118 certified. At present, all of Elica Group's production sites associated with significant environmental risks relating to transformation and production activities – with the exception of the Air Force facility – have adopted 14001:2015 compliant Environmental Management Systems.
The planet we live on and impact is a finite resource, and we have an obligation to deliver it to future generations in conditions that will not compromise their well-being.
The Group's business processes have been designed and organised and are conducted with utmost respect for the environment, with a view to implementing strategies that minimise the risk of environmental damage through the progressive reduction of impacts generated by its business activities.
The significant environmental impacts relate to the processes of transformation, distribution and use of the Group's products. The data and information presented refer to various reporting scopes depending on the indicator being analysed.
Every Group process that generates an environmental impact is conducted in full compliance with applicable laws and regulations, as well as with other environmental provisions, prescriptions, norms and standards contractually or voluntarily signed.
Every year, the Group sets goals for the achievement of ever greater sustainability in relevant business processes, so as to protect the natural environment of its production sites and promote optimal relations with local communities.
In view of these goals, in addition to ensuring that its certified Environmental Management System is constantly implemented, it circulates and facilitates the understanding by its management of the procedures and contents of the Ethics Code drafted in accordance with Legislative Decree No. 231/2001 and the Group's Policies and Procedures.
The environmental management systems at the certified sites provide for the rolling out of improvement plans which, on the basis of assessments of the environmental aspects and impacts associated with the processes and activities carried out, focus on the objectives of reducing waste or inefficiencies which, for the environmental topics, translate into a more responsible use of resources employed in a more significant manner in the transformation processes. The systems also employ internal auditors qualified in accordance with ISO 14001:2015 standard, who conduct planned internal audits. In addition to compliance with legislative requirements, these audits verify the appropriate level of operating conditions, the implementation of control requirements, the monitoring of indicators and objectives and the effectiveness of procedures to reduce the risk of incurring harmful events for the environment or for the containment of possible emergencies.
The Group is constantly committed to ensuring compliance with environmental regulations, whether they are in force at local, national or international level or are part of the supply contracts with customers. This is primarily, but not exclusively, to minimise the risk of administrative and/or criminal sanctions for its Directors and to protect its reputation.
To support systems and make them effective, the Group is committed to raising the level of awareness and competence of those who, through their work activities, can make real a difference regarding specific environmen-
tal aspects.
As part of the programme for continuous improvement, the sites in Italy, Poland, Mexico and China systematically use the Heinrich Pyramid tool (the same method that is also used in the field of health and safety promotion) which classifies all events related to: – environmental disasters;
– environmentally hazardous attitudes.
The events recorded in the Pyramid are collected through the completion of special forms by all the staff involved and by dedicated internal audits. The combination of the above activities during 2021 produced 2,154 environmentally related reports. The reports were analysed at the respective sites by the EHS teams who, with a view to continuous improvement, developed appropriate actions to remove the causes of the events reported.
Again in 2021, in confirmation of the efficacy of the environmental management systems, there were no cases of no cases of non-compliance, fines or proceedings against the Elica Group with regards to environmental laws and/or regulations.
The Heinrich Pyramid - Environment
Design has always been one of Elica Group's most distinctive features
Bringing an environmentally sustainable approach to this pervasive element in all our products, especially those intended for end-consumers, was a natural choice. Fruit of this constant commitment is the continuing development of Elica's Eco-friendly Packaging Design System.
In those years in which environmental sustainability topics were considered less relevant, Elica's product packaging design strategy was based on a substantially reactive approach that, against outside requests (mainly from customers), triggered an analysis of the feasibility/advisability of redesigning existing packaging to better meet the needs indicated by the
The Packaging Design System developed over the years includes a series of environmental guidelines for approaching eco-compatible design from a product and process standpoint by applying the 7 Design for Envi-
Raw material saving Containment of raw materials used in packaging and consequent reduction of weight against similar product and performance
for the same use for which it was conceived
Substitution of a portion or the totality of virgin raw material with recycled material to contribute to a reduction in the use of natural resources
All innovative actions that improve the operations of storage, the optimisation of loads on pallets and transport and improve the relationship between primary, secondary and tertiary packaging
Facilitating recycling activities All innovations to simplify the recovery and packaging recycling phases, such as the production of single material packaging.
Achieved by integrating multiple functions in a single packaging component, eliminating elements and thus simplifying the system
Concerning the upstream and downstream phases of the production line, thanks to the use of new production processes, the use of recycled materials and the reduction of energy consumption on the supply chain. This is also achieved by reducing the means used for the distribution of the product from the production point to the point of sale, the use of renewable energy and the reduced use of raw materials.
The strategic Packaging Design approach aimed at assessing the overall "process" impact is guiding Elica towards a redesign of the packaging for the existing range, starting with the most relevant SKUs in terms of volumes. The mechanisms and guidelines related to the integrated and Design-For-Environment (DFE) approach19 generated in recent years to support the re-engineering of existing packaging have made it possible to assess the environmental validity of new projects, setting environmental sustainability as one of the significant parameters to be used when validating packaging solutions. In order to support the process and make it even more robust right from the initial stages of development, in addition to the existing trial-and-error approach (with the use of the DFM20 and FEA21 approaches to assess robustness virtually) on-the-spot stress testing was undertaken using a video camera inside the packaging during the testing phase.
During 2021, Elica's Research and Development department also identified a project to significantly cut the amount of paper used in instruction booklets and information sheets supplied with finished products. Specifically, digital methods were assessed that would allow for the elimination of a significant portion of the paper used to produce the documents (while preserving the minimum information required by law). Therefore, by opting for employment of a QR Code it was possible to avoid the use of more than 12 million sheets of A4 paper and thus obtain a saving of CO2 emissions of approx. 44 equivalent tonnes23 and avoid the felling of more than 160 trees24.
Finally, and returning again to the subject of impacts related to packaging, and with a view to encouraging a circular economy, beginning January 1, 2022, Elica updated the documentation accompanying its products in accordance with Legislative Decree No. 116/2020. This introduced the obligation to provide information to end users for the correct disposal of packaging materials used for the product purchased.
Scope: Elica S.p.A. - estimated data based on sales projections of models for which the new re-engineering solutions are applicable *savings estimated on the basis of the report "Comparing the carbon footprint of carton packaging against alternative solutions" published in June 2021 by Pro Carton22
| Performance Indicators | ||
|---|---|---|
| unit | 2021 | |
| Eco-design packaging projects analysed | No. | 4 |
| Project type | ||
| unit | 2021 | |
| NikolaTesla hob packaging | 42 | |
| NikolaTesla FIT hob packaging | 8 | |
| Traditional IKEA packaging | t | 7 |
| Modern IKEA packaging | 8 | |
| Tonnes of CO2 saved* | 65 |
19. I The trial-and-error approach is a heuristic methodology aimed at identifying a solution to a problem by making an attempt at a solution and then checking whether that attempt has produced the desired effect 20. Design For Manufacturing 21. Finite Element Analysis
22. Association of European Cartonboard and Carton manufacturers 23. Fonte: Assocarta 24. Fonte: WWF
The consumption of energy carriers during transformation phases are constantly monitored in order to analyse trends and benchmark specific
efficiency improvement projects.
In 2021, due to the recovery of production rates (which had been negatively impacted by the COVID emergency in 2020), standard energy consumption increased by 13.5%. However, the data on the energy intensity of Elica's production sites, which account for 94% of total consumption (Italy, Poland and Mexico), show substantial stability compared to 2020 (+4.6%) while remaining significantly lower than the 2019 baseline (-9.5%).
During 2021, various energy efficiency projects were implemented at a number of sites (Fabriano, Mergo, Castelfidardo and Jelcz L.) (primarily relamping with LED projectors), while sensors for automatic air conditioning and lighting management were introduced at the Queretaro site in Mexico. The projects implemented resulted in combined savings of 146 tCO2e.
Three photovoltaic plants are operating at the Italian production sites, and in 2021 they produced a total of 1,147,215 kWh of renewable electricity, (approximately 4,130 Gj). As a result of the acquisition of EMC FIME S.r.l. in July, an additional photovoltaic plant was added, producing a total of 1,598,260 kWh (approximately 5,750 GJ) in the period under review (July-December 2021). As a result, the percentage of renewable energy used in Italian production sites rose from 7.1% in 2020 to 14.7% in 2021, leading to emission savings of 1,153 tCO2e.
Also on the subject of reduced indirect emissions, Elica reached an agreement with its electricity supplier for the sites in Italy for the supply, beginning January 1, 2022, of 100% green energy solely from renewable sources. This agreement will thus enable an annual reduction in emissions of an estimated 4 thousand tCO2e.
Elica is constantly seeking to reduce the environmental impact linked to energy consumption generated by the use of its products, both during the new design phase and when re-engineering existing products. Through the activity of its EPL laboratory, the organisation can preventively measure the impact of each finished product placed on the market and research and apply solutions to reduce its energy consumption.
In order to monitor this activity, sales of Cooking products with an energy label are measured using a synthetic indicator, Energy Efficiency Index (EEI). The 2021 sales figures confirm the downward trend, which compared to the 2018 baseline, stands at 23%.
Another important element has been added with a view to transparency and sharing of the Group's environmental performance: In 2021 Elica joined the initiative promoted by the independent non-profit organisation CDP25 (formerly the Carbon Disclosure Project) which for has for the last few years offered companies, countries, regions and cities a system to measure, detect, manage and share information on their environmental impact at a global level, with the aim of encouraging them to undertake mitigation actions.
By adhering to this initiative, Elica joined a panel of over 13,000 companies that will report on the CDP portal in 2021, thereby highlighting their strong commitment to environmental transparency. Support for this initiative also satisfies the requirements and expectations of important Group stakeholders who, with increasing emphasis, wish to measure the environmental impacts generated by the partners involved in their value chain.
With regard to sustainability trends associated with Motors BU pro-
ducts, much attention has been paid to regulatory developments and environmental objectives involving products manufactured in the industry. On July 14, 2021, the European Commission adopted the "Fit for 55" climate package, which proposes legislation to achieve Green Deal targets by 2030. Specifically, this includes the reduction of greenhouse gas emissions by 55% compared to 1990 levels, with the aim of achieving carbon neutrality by 2050. Achieving these reductions over the next decade is critical if Europe is to become the first climate-neutral continent by 2050.
25. https://www.cdp.net/en/info/about-us
of decarbonisation targets. To prepare to reach this landmark, many European boiler manufacturers are moving forward with the development of
In this process, hydrogen, along with other technologies, plays an important role in reducing NOx26 emissions associated with the use of fossil fuels. The heating sector is one with the greatest impact on fuel consumption and, from 2025 onwards, hydrogen, blended with methane, will be increasingly present in domestic gas supply networks. The long-term aim is to completely replace methane and thus contribute to the achievement 26. Nitrogen oxides produced as byproducts during combustion
systems that will enable the massive use of hydrogen.
In July 2020, EMC FIME S.r.l. began a collaboration with KIWA27 which continued throughout 2021 and was successfully completed in January 2022 when the product range for boilers (Premix) was certified for hydrogen compatibility.
With its know-how, EMC FIME S.r.l. will be able to support its customers in the sector and contribute actively to the achievement of climate targets associated with the use of renewable energy.
27. A leading Testing, Inspection and Certification (TIC) company
| Performance Indicators Fuel consumption in countries with production activities (offices and sites) |
|||||
|---|---|---|---|---|---|
| Consumption of fuels from non-renewable sources | unit | 2021 | 2020 | ||
| Natural gas | Mc | 2,822,264 | 2,478,827 | ||
| Diesel | 4,002 | 2,670 | |||
| Petrol | Litres | 0 | 0 | ||
| LPG | 46,357 | 32,538 | |||
| Natural gas | 101,743 | 89,362 | |||
| Diesel | 144 | 96 | |||
| Petrol | Gj | 0 | 0 | ||
| LPG | 1,101 | 773 | |||
| Total | 102,988 | 90,231 |
| Consumption of fuels from renewable sources | unit | 2021 | 2020 |
|---|---|---|---|
| Bioethanol | Litres | 850 | 800 |
| Biodiesel | 0 | 0 | |
| Bioethanol | 18 | 17 | |
| Biodiesel | Gj | 0 | 0 |
| Total | 18 | 17 |
| 850 | 800 | |
|---|---|---|
| Litres | ||
| 18 | 17 | |
| Gj | ||
Scope: Elica, Elicamex, Elica Group Polska, Putian, Air Force, Elica India, EMC FIME S.r.l. (not included in 2020 data) Note: consumption has been calculated using data collected from suppliers, invoices and consumption monitoring software.
Scope: Elica, Elicamex, Elica Group Polska, Putian, Air Force, Elica India, EMC FIME S.r.l. (not included in 2020 data)Nota: i consumi Note: consumption has been calculated using data collected from suppliers, invoices and consumption monitoring software.
| CO2 emissions from fuel consumption in countries with production activities (offices and sites) | ||||
|---|---|---|---|---|
| Emissions from consumption of fuels from non-renewable sources | unit | 2021 | 2020 | |
| Natural gas | 5,705 | 5,073 | ||
| Diesel | 11 | 7 | ||
| Petrol | tCO2e | 0 | 0 | |
| LGPL | 72 | 50 | ||
| Total | 5,788 | 5,130 |
| Energy consumption in countries with production activities (offices and sites) | ||||
|---|---|---|---|---|
| Energy consumption | unit | 2021 | 2020 | |
| Electricity | 28,033,945 | 24,286,221 | ||
| From non-renewable sources | 25,055,521 | 22,492,110 | ||
| From renewable sources | kWh | 2,141,440 | 922,616 | |
| District heating | 836,984 | 871,495 | ||
| Total | 28,033,945 | 24,286,221 |
Scope: Elica, Elicamex, Elica Group Polska, Putian, Air Force, Elica India, EMC FIME S.r.l. (not included in 2020 data) Note: emissions have been calculated using the emission conversion factors published in the "DEFRA conversion factors" report.
Scope: Elica, Elicamex, Elica Group Polska, Putian, Air Force, Elica India, EMC FIME S.r.l. (not included in 2020 data) Note: consumption has been calculated using data collected from suppliers, invoices and consumption monitoring software. The figure for district heating refers only to the Elica Group Polska site.
Scope: Elica, Elicamex, Elica Group Polska, Putian, Air Force, Elica India, EMC FIME S.r.l. (not included in 2020 data) Note: emissions have been calculated using the emission conversion factors report published in 2021 by the UK Department for Environment Food & Rural Affairs (DEFRA).
| Emissions from consumption of fuels from renewable sources | unit | 2021 | 2020 |
|---|---|---|---|
| Bioethanol | 0.008 | 0.007 | |
| Biodiesel | tCO2e | 0 | 0.000 |
| Total | 0.008 | 0.007 |
| CO2 emissions from energy consumption in countries with production activities (offices and sites) | ||||
|---|---|---|---|---|
| Emissions from non-renewable sources | unit | 2021 | 2020 | |
| Electricity | 12,201 | 11,283 | ||
| District heating | tCO2e | 145 | 163 | |
| Total | 12,346 | 11,447 |
| Business trips and atmospheric CO2 emissions | ||||
|---|---|---|---|---|
| Number of flights and km travelled | unit | 2021 | 2020 | |
| Flights | No. | 611 | 615 | |
| Air km travelled | Km | 2,279,594 | 1,697,898 |
| Emissions from vehicle and airline business journeys | |||
|---|---|---|---|
| unit | 2021 | 2020 | |
| Car | 1,222 | 737 | |
| Diesel | 1,095 | 637 | |
| Petrol | tCO2e | 127 | 99 |
| Air | 3,834 | 427 | |
| Total | 5,056 | 1,164 |
Scope: Elica, Elicamex, Elica Group Polska, Putian, Air Force, Elica India, EMC FIME S.r.l. (not included in 2020 data) Note: the methodology used to calculate the "location-based" emissions involves the use of specific emission factors for each country to which the companies in the perimeter belong, published in the 2020 report available on the website www.carbonfootprint.com. The data for district heating refer only to the Elica Group Polska site.
Scope: Elica S.p.A., Elica Group Polska Sp.z o.o., Leonardo Services S.a. de C.V., Zhejiang Elica Putian Electric Co. Ltd, Elica France S.A.S. Elica GmbH, Air Force S.p.A, Elica Trading LLC Note: distances have been calculated on the basis of routes taken by employees estimated via the website http://www.worldatlas. com/travelaids/flight_distance.htm.
Scope: Elica S.p.A., Elica Group Polska Sp.z o.o., Leonardo Services S.a. de C.V., Zhejiang Elica Putian Electric Co. Ltd e Elica France S.A.S. Elica GmbH, Air Force S.p.A, Elica Trading LLC, Elica PB India Private Limited Note: distances travelled have been calculated on the basis of the fuel expense sheets.
Auto emissions perimeter (Diesel and Petrol): Elica S.p.A., Elica Group Polska Sp.z o.o., Leonardo Services S.a. de C.V., Zhejiang Elica Putian Electric Co. Ltd e Elica France S.A.S. Elica GmbH, Air Force S.p.A, Elica Trading LLC, Elica PB India Private Limited Air emissions perimeter: Elica S.p.A., Elica Group Polska Sp.z o.o., Leonardo Services S.a. de C.V., Zhejiang Elica Putian Electric Co. Ltd, Elica France S.A.S. Elica GmbH, Air Force S.p.A, Elica Trading LLC Note: emissions have been calculated using the emission conversion factors report published in 2021 by the UK Department for Environment Food & Rural Affairs (DEFRA).
| Fuel consumed during motor vehicle commutes | unit | 2021 | 2020 |
|---|---|---|---|
| Diesel | 404,864 | 237,061 | |
| Petrol | Litres | 59,086 | 46,974 |
| Total | 463,951 | 284,034 |
Elica uses a significant number of raw materials originating from different industrial sectors.
As a processing industry, no minerals are directly imported from conflict areas (Conflict Minerals).
The main raw materials used in the production processes are:
Completing the picture are the materials used to assemble the finished products:componentistica elettrica/elettronica;
Although the major producers of raw materials from the metal transformation sector use a significant portion of recycled material and the same can be assumed for materials used for packaging (in particular for cardboard and wood components), Elica is not able to provide precise data on the content of recycled materials for every type of material used in its production processes.
However, from the information received from Elica's stainless steel suppliers, the content of raw material from recycling circuits is estimated to be around 70-75%.
Particular attention is also paid to the procurement of raw materials that comply with the relevant applicable regulations (e.g. RoHS II, REACH, etc. and all applicable safety regulations) through supply agreements and information gathering activities by suppliers that ensure the complete and ongoing compliance of products from the earliest stages of design and development. In terms of the packaging supply chain, ELICA prefers suppliers who are in possession of FSC certifications for a supply deriving from environmentally friendly, socially useful and economically sustainable forest management.
In 2021, objectives were identified that can be pursued in order to promote circular economy projects, and Elica is therefore working internally (with its Technical and Procurement Sector) and externally (with its supply chain partners) to obtain even more detailed information regarding the content of materials coming from recycling circuits in order to outline indicators that can measure and incentivise the increasing use of recycled
materials in its production processes.
| Performance Indicators Purchase of goods for production |
|||
|---|---|---|---|
| Material | unit | 2021 | 2020 |
| Iron | 31,804 | 29,159 | |
| Stainless steel | 11,444 | 12,758 | |
| Copper | 4,980 | 4,345 | |
| Plastic | 3,443 | 3,317 | |
| Aluminium | 2,541 | 2,160 | |
| Tin | t | 6 | 4 |
| Cardboard for packaging | 9,540 | 8,748 | |
| Wood packaging materials | 2,547 | 2,503 | |
| Plastics for packaging | 1,001 | 1,144 | |
| Powder coating | 466 | 442 | |
| Total | 67,771 | 64,580 |
Scope: Elica S.p.A., Elicamex, Elica Group Polska, Putian, Air Force, Elica India, EMC FIME S.r.l. (not included in 2020 data) Data calculated on the basis of information and specifications shared with suppliers or on the basis of best estimates made by Elica S.p.A.'s Technical Sector.
The ELICA Group uses for its production processes raw materials essentially from the metal transformation industry (carbon steels, stainless steels, copper, aluminium, etc.). During the internal processing and to complete its range on the market, mostly components from the electrical and electronic (printed circuit boards, transformers, power cables, power supplies, transformers, etc.) and primary packaging chains (corrugated cardboard boxes, expanded polystyrene components, wooden pallets and polyethylene bags) are used. For the transport and delivery of these materials, the supply chain uses wooden pallets for packaging or secondary containers and packaging (corrugated cardboard boxes or mixed packaging).
Consequently, most of the waste produced as a result of the production activities is composed of:
Almost all ferrous waste is sent to the recycling stream.
Liquid waste deriving mainly from the powder coating process (washing/degreasing water from components sent for painting) and waste oil emulsions and exhausted mineral oils generated by maintenance work on machine tools in the mechanical processing departments (step presses, press brakes and mechanical punching machines) account for much smaller quantities.
A small amount of WEEE (waste electrical and electronic equipment) is also considered - generated during the remanufacturing of non-working products or products returned from the market.
At all Elica facilities, all waste generated by the company's activities is collected separately by type and disposed of in compliance with law, giving priority to authorised parties for transport and disposal at destination plants that carry out treatment for the recovery of materials or energy.
Separate waste collection is carried out in offices (both in plant equipped with canteens and in refreshment areas) with bins for paper, plastic, organic waste, glass and cans and undifferentiated waste. All staff have been trained on and informed of the importance of correctly sorting and disposing of waste.
To minimise the impact of waste generation, Elica has always carefully designed its products and production processes to optimise the use of raw materials and minimise the waste associated with transformation processes.
Where possible, Elica has enacted policies to reduce the use of secondary packaging by setting out - in collaboration with its partners in the supply chain - special supply rules that prioritise the use of reusable containers (in particular with suppliers involved in the "milk-run" flow, which therefore ensures just-in-time supply).
Specific reusable containers are also used for the internal handling of high turnover components, thus further reducing the use of secondary
packaging.
The EHS departments at each plant and the Corporate EHS department constantly monitor monthly waste production data, focusing in particular on packaging-related waste and the liquid waste generated by the painting processes at the sites in Mergo (Italy), Jelcz Laskowice (Poland), and Queretaro (Mexico), which have the potential to produce more significant environmental impacts.
In 2021, the Group's production facilities generated a total of 16,274 tonnes of waste, of which 99.5% non-hazardous and the remaining 0.5% hazardous. Of the total waste produced, approximately 93.2% was sent for recovery while the remaining 6.8% was sent for disposal.
| Performance Indicators Waste by composition, in tonnes (t) - GRI 306-3 |
|||
|---|---|---|---|
| Total weight of hazardous waste | unit | 2021 | 2020 |
| Waste diverted from disposal | 46 | 30 | |
| Waste directed to disposal | t | 29 | 31 |
| Total | 75 | 61 | |
| Total weight of non-hazardous waste | unit | 2021 | 2020 |
| Waste diverted from disposal | 15,126 | 13,959 | |
| Waste directed to disposal | t | 1,073 | 999 |
| Total | 16,199 | 14,958 |
94.2% of non-hazardous waste and 61.4% of hazardous waste was sent for recovery, while 5.8% of non-hazardous waste and 38.6% of hazardous waste was sent for disposal. The percentage breakdown of waste recovery and disposal operations is shown in the summary tables given below. 100% of the waste produced by the Elica Group was treated offsite.
| Total non-hazardous waste by disposal type | |
|---|---|
| Metal recycling | 78.9% |
| Other recovery operations | 9.5% |
| Organic material recycling | 4.1% |
| Physical-chemical treatment | 2.0% |
| Inorganic material recycling | 1.7% |
| To landfill | 1.2% |
| Incinerated (with energy recovery) | 1.1% |
| Other disposal operations | 1.0% |
| Biological treatment | 0.4% |
| Incinerated (without energy recovery) | 0.1% |
| Total hazardous waste by disposal type | |
|---|---|
| Other recovery operations | 45.7% |
| Incinerated (with energy recovery) | 16.8% |
| Preparation for reuse | 15.7% |
| Other disposal operations | 12.5% |
| Physical-chemical treatment | 9.3% |
| Waste by composition, in tonnes (t) - GRI 306-3 | |||
|---|---|---|---|
| Total weight of hazardous waste | unit | 2021 | 2020 |
| Waste diverted from disposal | 12 | 12 | |
| Other recovery operations | t | 34 | 17 |
| Total | 46 | 30 | |
| Total weight of non-hazardous waste | unit | 2021 | 2020 |
| Metal recycling | 12,788 | 11,875 | |
| Organic material recycling | 669 | 536 | |
| Inorganic material recycling | t | 271 | 185 |
| Other recovery operations | 1,535 | 1,468 | |
| Total | 15,263 | 14,064 |
| Waste directed to disposal, in tonnes (t) - GRI 306-5 | |||
|---|---|---|---|
| Total weight of hazardous waste | unit | 2021 | 2020 |
| Incinerated (with energy recovery) | 13 | 11 | |
| Physical-chemical treatment | 7 | 8 | |
| Other disposal operations | t | 9 | 12 |
| Total | 29 | 31 | |
| Total weight of non-hazardous waste | unit | 2021 | 2020 |
| Incinerated (with energy recovery) | 181 | 174 | |
| Incinerated (without energy recovery) | 11 | 16 | |
| To landfill | 194 | 165 | |
| Lagooning | t | 0 | 24 |
| Biological treatment | 60 | 53 | |
| Physical-chemical treatment | 320 | 298 | |
| Other disposal operations | 169 | 163 | |
| Total | 935 | 894 |
| Incinerated (with energy recovery) |
|---|
Scope: Elica, Elicamex, Elica Group Polska, Putian, Air Force, Elica India, EMC FIME S.r.l. (not included in 2020 data) We highlight that as of this edition of the Non-Financial Report, the waste reporting methodology has been updated in accordance with the new indicator in GRI 306 (2020). Therefore, the data for 2020 have also been restated by applying the new methodology.
For Elica, supply chain management has always been an essential priority in ensuring that supplies are provided in full compliance with locally applicable regulations. Particular attention is paid to protecting the environment, workers' rights and the territories that house its suppliers' production facilities.
Elica has always been very sensitive to establishing lasting partnerships and mutual collaborations and has, over the last few years, paid increasing attention to defining clearer rules for the qualification and management of suppliers. Among the objectives of this approach is the promotion of stable and economically sustainable partnerships, guaranteeing continuous innovation by defining high levels of Quality and Service, without damaging environmental resources and in full respect of the needs of staff.
In 2021, Elica further pursued these objectives by carrying out a new mapping exercise that involved approximately 180 of the more than 270 suppliers in the supply chain associated with the factories in the Italy-Poland perimeter (Elica S.p.A. - Elica Group Polska). This mapping focused on collecting information on the Quality, Environment, Safety, Energy etc. certifications held. It revealed that 90% of suppliers are ISO 9001 certified, 38% are also ISO 14001 certified, 17% have an Management System certified to ISO 45001 and 7% to ISO 50001. The remaining 16% have other certifications (e.g. IATF, FSC, ISO 28000 etc.).
In Q2 2021, the process for the initial evaluation and qualification of new providers and the monitoring of their performance over time was made even more robust, with a revision of both the approval and EHS (Environment-Health-Safety) assessment procedures.
With regard to EHS issues, more than 100 self-assessment questionnaires were sent to suppliers of factories in EMEA and Mexico. These contained specific evaluation sections for the following aspects:
Specifically, the Ethics & Audit section of the questionnaire assesses aspects relating to the governance of suppliers in managing ethical issues and their willingness to allow Elica (or third parties on behalf of Elica) to carry out EHS audits at their plant.
Questions regarding Environment, Health and Safety, on the other hand, provide information about the operational and continuous improvement practices enacted by suppliers to minimise their environmental impacts and systematically reduce the risk of workplace accidents.
The questions in the "Working conditions" and "Social conditions" sections aim to verify that fair working conditions and adequate economic treatment are guaranteed to all workers employed by Elica's suppliers, in full respect of people's fundamental rights.
SUPPLIERS EVALUATED ACCORDING TO ENVIRONMENTAL AND SOCIAL CRITERIA
The totality of the responses shows an overall result that is the combined product of a Reliability Index and a Risk Index for the supplier evaluated. The returned questionnaires were analysed by the Purchasing Office and the function that coordinates the Quality, Environment and Safety Management System, while the results were collected in a dedicated database. In 2022, EHS audits will be performed at suppliers whose self-assessment returned an overall result that made a thorough field audit necessary. The
audit plan will be an integral part of the overall Audit Plan that is prepared annually by the Supplier Quality function.
Using the aforementioned self-assessment questionnaires, Elica has thus acquired the information necessary to identify any critical issues associated with the supply chain and to promote improvement programmes for suppliers that have a stable working relationship with Elica.
This information will be periodically updated in future years to ensure ongoing monitoring of suppliers' environmental and social performance.
From H2 2021, EHS questionnaires were provided to potential new vendors as early as the pre-qualification stage so that, where required, appropriate improvement plans could be enacted even before the vendor
relationship began.
| Performance Indicators Suppliers |
|||
|---|---|---|---|
| Suppliers evaluated according to Environmental and Social criteria | unit | 2021 | 2020 |
| Suppliers evaluated | No. | 106 | n.a. |
| Total suppliers | No. | 387 | n.a. |
| Percentage of suppliers evaluated | % | 27% | n.a. |
Perimeter of suppliers evaluated Elica, Elicamex, Elica Group Polska
GROWTH TAKES SHAPE THROUGH PEOPLE.
28. Excluding temporary workers.
At December 31, 2021, Elica Group personnel numbered 3,27828, of whi ch 40% women – with 72% involved in productive activities and 28% invol ved in support roles; permanent contracts at the end of the year numbe red 2,869 and temporary contracts 409. During the year, 899 people were hired, with an outgoing personnel turnover rate of 26.3% (comparison of the number of departures against the total number of employees), against an incoming turnover rate of 27.4%.
The countries with the most critical turnovers are Mexico and Poland. Such turnovers are mainly determined by blue-collar dynamics, strongly influenced by extremely low unemployment rates, as well as high indu strialisation and economic growth in areas where the Group's facilities are located.
The main risks of a non-virtuous turnover management are loss of cor porate know-how and labour cost increases for the replacement of resour ces leaving Group companies, as well as the increase in training costs for incoming employees. At the same time, the loss of expert personnel can affect the efficiency of production and administrative processes.
Workforce management in 2021 was again dominated by COVID-19 glo bal pandemic containment measures. The need to safeguard the health of its employees as well as business continuity led Elica to adopt a series of health and safety measures compliant with local government regulations (i.e. the provision of personal protective equipment), as well as organisa tional solutions that see investment in generating a sense of belonging and affinity (i.e. office signs) and use of spaces to ensure social distan cing). All of the Group's premises have retained office sanitisation and staff entrance body temperature measurements.
In terms of the employee support initiatives that each country has put in place, the following are worth mentioning:
Elica Americas has enhanced its transport service for employees. In 2019, the company also implemented a system to monitor turnover we ekly. As of 2021, the Mexican branch has strengthened its analytics and has raised salaries for blue collar workers. It has also reinforced its strate gy for talent attraction in a thriving labour market.
Elica Group Polska has retained from 2020 periodic salary reviews, he alth insurance, the provision of transportation services for employees and has improved company canteen services, increasing the credit available
to employees.
As in 2020, Elica Putian has retained measures to engender the loyalty of key employees through loyalty bonuses and dedicated career develop ment plans.
Employees by gender, role and level (excluding temporary workers)
| Employees (headcount) by function unit |
2021 | 2020 | |||||
|---|---|---|---|---|---|---|---|
| and gender | Male | Female | Total | Male | Female | Total | |
| Employees engaged in production activities |
1,171 | 940 | 2,111 | 1,172 | 896 | 2,068 | |
| below 30 years of age | 309 | 197 | 506 | 320 | 193 | 513 | |
| between 30 and 50 years of age | 600 | 478 | 1,078 | 613 | 483 | 1,096 | |
| over 50 years of age | 262 | 265 | 527 | 239 | 220 | 459 | |
| Employees engaged in support No. activities |
805 | 362 | 1,167 | 809 | 365 | 1,174 | |
| below 30 years of age | 179 | 107 | 286 | 192 | 105 | 297 | |
| between 30 and 50 years of age | 459 | 210 | 669 | 468 | 218 | 686 | |
| over 50 years of age | 167 | 45 | 212 | 149 | 42 | 191 | |
| Total | 1,976 | 1,302 | 3,278 | 1,981 | 1,261 | 3,242 |
| Employees (headcount) by level unit |
2021 | 2020 | |||||
|---|---|---|---|---|---|---|---|
| and gender | Male | Female | Total | Male | Female | Total | |
| Executives | 27 | 4 | 31 | 26 | 2 | 28 | |
| below 30 years of age | 0 | 0 | 0 | 0 | 0 | 0 | |
| between 30 and 50 years of age | 14 | 3 | 17 | 17 | 1 | 18 | |
| over 50 years of age | 13 | 1 | 14 | 9 | 1 | 10 | |
| Managers | 124 | 27 | 151 | 123 | 25 | 148 | |
| below 30 years of age | 6 | 1 | 7 | 5 | 1 | 6 | |
| between 30 and 50 years of age | 84 | 20 | 104 | 89 | 20 | 109 | |
| over 50 years of age | 34 | 6 | 40 | 29 | 4 | 33 | |
| No. White-collar |
690 | 336 | 1,026 | 687 | 336 | 1,023 | |
| below 30 years of age | 200 | 111 | 311 | 211 | 104 | 315 | |
| between 30 and 50 years of age | 379 | 192 | 571 | 376 | 199 | 575 | |
| over 50 years of age | 111 | 33 | 144 | 100 | 33 | 133 | |
| Blue-collar | 1,135 | 935 | 2,070 | 1,145 | 898 | 2,043 | |
| below 30 years of age | 282 | 192 | 474 | 292 | 191 | 483 | |
| between 30 and 50 years of age | 583 | 473 | 1,056 | 605 | 483 | 1,088 | |
| over 50 years of age | 270 | 270 | 540 | 248 | 224 | 472 | |
| Total | 1,976 | 1,302 | 3,278 | 1,981 | 1,261 | 3,242 |
Scope: Elica S.p.A., Elica Group Polska Sp.z o.o, Leonardo Services S.a. de C.V., Elica Inc., Zhejiang Elica Putian Electric Co. Ltd, Elica Trading LLC, Air Force S.p.A., Elica France S.A.S, Elica GmbH, Elica PB India Private Ltd, EMC FIME S.r.l. (not included in 2020 data)
| Employees by gender and contract type (excluding temporary workers) | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Employees (headcount) unit |
2021 | 2020 | ||||||||
| Male | Female | Total | Male | Female | Total | |||||
| Temporary employees | 225 | 184 | 409 | 235 | 177 | 412 | ||||
| Italy | 5 | 2 | 7 | 8 | 8 | 16 | ||||
| France | 0 | 2 | 2 | 0 | 1 | 1 | ||||
| Germany | 0 | 0 | 0 | 0 | 1 | 1 | ||||
| Poland | 116 | 128 | 244 | 99 | 98 | 197 | ||||
| Russia | 0 | 0 | 0 | 0 | 0 | 0 | ||||
| The Americas | 22 | 13 | 35 | 53 | 25 | 78 | ||||
| India | 39 | 11 | 50 | 37 | 22 | 59 | ||||
| China | 43 | 28 | 71 | 38 | 22 | 60 | ||||
| Japan | 0 | 0 | 0 | 0 | 0 | 0 | ||||
| Permanent employees No. |
1,751 | 1,118 | 2,869 | 1,746 | 1,084 | 2,830 | ||||
| Italy | 736 | 485 | 1,221 | 732 | 462 | 1,194 | ||||
| France | 8 | 4 | 12 | 8 | 6 | 14 | ||||
| Germany | 9 | 5 | 14 | 9 | 5 | 14 | ||||
| Poland | 154 | 291 | 445 | 143 | 282 | 425 | ||||
| Russia | 11 | 16 | 27 | 11 | 17 | 28 | ||||
| The Americas | 432 | 251 | 683 | 441 | 254 | 695 | ||||
| India | 370 | 48 | 418 | 357 | 35 | 392 | ||||
| China | 31 | 18 | 49 | 45 | 23 | 68 | ||||
| Japan | 0 | 0 | 0 | 0 | 0 | 0 | ||||
| Employees by gender and contract type (excluding temporary workers) | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Employees (headcount) unit |
2021 | 2020 | ||||||||
| Male | Female | Total | Male | Female | Total | |||||
| Temporary employees | 225 | 184 | 409 | 235 | 177 | 412 | ||||
| Italy | 5 | 2 | 7 | 8 | 8 | 16 | ||||
| France | 0 | 2 | 2 | 0 | 1 | 1 | ||||
| Germany | 0 | 0 | 0 | 0 | 1 | 1 | ||||
| Poland | 116 | 128 | 244 | 99 | 98 | 197 | ||||
| Russia | 0 | 0 | 0 | 0 | 0 | 0 | ||||
| The Americas | 22 | 13 | 35 | 53 | 25 | 78 | ||||
| India | 39 | 11 | 50 | 37 | 22 | 59 | ||||
| China | 43 | 28 | 71 | 38 | 22 | 60 | ||||
| Japan | 0 | 0 | 0 | 0 | 0 | 0 | ||||
| Permanent employees No. |
1,751 | 1,118 | 2,869 | 1,746 | 1,084 | 2,830 | ||||
| Italy | 736 | 485 | 1,221 | 732 | 462 | 1,194 | ||||
| France | 8 | 4 | 12 | 8 | 6 | 14 | ||||
| Germany | 9 | 5 | 14 | 9 | 5 | 14 | ||||
| Poland | 154 | 291 | 445 | 143 | 282 | 425 | ||||
| Russia | 11 | 16 | 27 | 11 | 17 | 28 | ||||
| The Americas | 432 | 251 | 683 | 441 | 254 | 695 | ||||
| India | 370 | 48 | 418 | 357 | 35 | 392 | ||||
| China | 31 | 18 | 49 | 45 | 23 | 68 | ||||
| Japan | 0 | 0 | 0 | 0 | 0 | 0 | ||||
| Total | 1,976 | 1,302 | 3,278 | 1,981 | 1,261 | 3,242 |
| Employees (headcount) | unit | 2021 | 2020 | |||||
|---|---|---|---|---|---|---|---|---|
| Male | Female | Total | Male | Female | Total | |||
| Full-time employees | 1,973 | 1,280 | 3,253 | 1,980 | 1,231 | 3,211 | ||
| Part-time employees | No. | 3 | 22 | 25 | 1 | 30 | 31 | |
| Total | 1,976 | 1,302 | 3,278 | 1,981 | 1,261 | 3,242 |
Scope: Elica S.p.A., Elica Group Polska Sp.z o.o, Leonardo Services S.a. de C.V., Elica Inc., Zhejiang Elica Putian Electric Co. Ltd, Elica Trading LLC, Air Force S.p.A., Elica PB India Private Ltd., Elica France S.A.S., EMC FIME S.r.l. (not included in 2020 data)
| New hires | unit | 2021 | 2020 | |||||
|---|---|---|---|---|---|---|---|---|
| Male | Female | Total | Male | Female | Total | |||
| Italy | No. | 44 | 38 | 82 | 16 | 11 | 27 | |
| below 30 years of age | 18 | 11 | 29 | 7 | 6 | 13 | ||
| between 30 and 50 years of age | 21 | 21 | 42 | 7 | 3 | 10 | ||
| over 50 years of age | 5 | 6 | 11 | 2 | 2 | 4 | ||
| France | 1 | 1 | 2 | 1 | 1 | 2 | ||
| below 30 years of age | 0 | 0 | 0 | 0 | 1 | 1 | ||
| between 30 and 50 years of age | 1 | 0 | 1 | 1 | 0 | 1 | ||
| over 50 years of age | 0 | 1 | 1 | 0 | 0 | 0 | ||
| Germany | 1 | 1 | 2 | 1 | 1 | 2 | ||
| below 30 years of age | 1 | 0 | 1 | 0 | 0 | 0 | ||
| between 30 and 50 years of age | 0 | 1 | 1 | 0 | 1 | 1 | ||
| over 50 years of age | 0 | 0 | 0 | 1 | 0 | 1 | ||
| Poland | 113 | 140 | 253 | 111 | 111 | 222 | ||
| below 30 years of age | 57 | 58 | 115 | 53 | 51 | 104 | ||
| between 30 and 50 years of age | 49 | 66 | 115 | 49 | 42 | 91 | ||
| over 50 years of age | 7 | 16 | 23 | 9 | 18 | 27 | ||
| Russia | 1 | 4 | 5 | 1 | 1 | 2 | ||
| below 30 years of age | 0 | 3 | 3 | 1 | 0 | 1 | ||
| between 30 and 50 years of age | 1 | 1 | 2 | 0 | 1 | 1 | ||
| over 50 years of age | 0 | 0 | 0 | 0 | 0 | 0 | ||
| The Americas | 305 | 147 | 452 | 272 | 179 | 451 | ||
| below 30 years of age | 222 | 113 | 335 | 197 | 133 | 330 | ||
| between 30 and 50 years of age | 82 | 32 | 114 | 73 | 46 | 119 | ||
| over 50 years of age | 1 | 2 | 3 | 2 | 0 | 2 | ||
| India | 55 | 18 | 73 | 68 | 28 | 96 | ||
| below 30 years of age | 35 | 11 | 46 | 23 | 17 | 40 | ||
| between 30 and 50 years of age | 20 | 7 | 27 | 45 | 11 | 56 | ||
| over 50 years of age | 0 | 0 | 0 | 0 | 0 | 0 | ||
| China | 18 | 12 | 30 | 37 | 20 | 57 | ||
| below 30 years of age | 4 | 0 | 4 | 10 | 5 | 15 | ||
| between 30 and 50 years of age | 12 | 10 | 22 | 26 | 14 | 40 | ||
| over 50 years of age | 2 | 2 | 4 | 1 | 1 | 2 | ||
| Japan | 0 | 0 | 0 | 0 | 0 | 0 | ||
| below 30 years of age | 0 | 0 | 0 | 0 | 0 | 0 | ||
| between 30 and 50 years of age | 0 | 0 | 0 | 0 | 0 | 0 | ||
| over 50 years of age | 0 | 0 | 0 | 0 | 0 | 0 | ||
| Total | 538 | 361 | 899 | 507 | 352 | 859 | ||
| below 30 years of age | 337 | 196 | 533 | 291 | 313 | 504 | ||
| between 30 and 50 years of age | 186 | 138 | 324 | 201 | 118 | 319 | ||
| over 50 years of age | 15 | 27 | 42 | 15 | 21 | 36 |
| Number of employees leaving the Group (excluding temporary workers) | ||||||||
|---|---|---|---|---|---|---|---|---|
| unit | 2021 | 2020 | ||||||
| Male | Female | Total | Male | Female | Total | |||
| Italy No. |
43 | 21 | 64 | 46 | 18 | 64 | ||
| below 30 years of age | 6 | 3 | 9 | 2 | 4 | 6 | ||
| between 30 and 50 years of age | 19 | 11 | 30 | 23 | 5 | 28 | ||
| over 50 years of age | 18 | 7 | 25 | 21 | 9 | 30 | ||
| France | 1 | 2 | 3 | 1 | 2 | 3 | ||
| below 30 years of age | 0 | 0 | 0 | 0 | 0 | 0 | ||
| between 30 and 50 years of age | 1 | 2 | 3 | 1 | 2 | 3 | ||
| over 50 years of age | 0 | 0 | 0 | 0 | 0 | 0 | ||
| Germany | 1 | 2 | 3 | 0 | 1 | 1 | ||
| below 30 years of age | 0 | 0 | 0 | 0 | 0 | 0 | ||
| between 30 and 50 years of age | 0 | 2 | 2 | 0 | 1 | 1 | ||
| over 50 years of age | 1 | 0 | 1 | 0 | 0 | 0 | ||
| Poland | 86 | 100 | 186 | 99 | 101 | 200 | ||
| below 30 years of age | 44 | 38 | 82 | 38 | 36 | 74 | ||
| between 30 and 50 years of age | 33 | 43 | 76 | 49 | 42 | 91 | ||
| over 50 years of age | 9 | 19 | 28 | 12 | 23 | 35 | ||
| Russia | 1 | 5 | 6 | 0 | 4 | 4 | ||
| below 30 years of age | 1 | 1 | 2 | 0 | 1 | 1 | ||
| between 30 and 50 years of age | 0 | 4 | 4 | 0 | 3 | 3 | ||
| over 50 years of age | 0 | 0 | 0 | 0 | 0 | 0 | ||
| The Americas | 345 | 162 | 507 | 236 | 153 | 389 | ||
| below 30 years of age | 225 | 112 | 337 | 150 | 105 | 255 | ||
| between 30 and 50 years of age | 113 | 47 | 160 | 85 | 44 | 129 | ||
| over 50 years of age | 7 | 3 | 10 | 1 | 4 | 5 | ||
| India | 39 | 17 | 56 | 78 | 29 | 107 | ||
| below 30 years of age | 20 | 11 | 31 | 40 | 20 | 60 | ||
| between 30 and 50 years of age | 18 | 6 | 24 | 35 | 9 | 44 | ||
| over 50 years of age | 1 | 0 | 1 | 3 | 0 | 3 | ||
| China | 27 | 11 | 38 | 58 | 28 | 86 | ||
| below 30 years of age | 4 | 0 | 4 | 12 | 7 | 19 | ||
| between 30 and 50 years of age | 20 | 9 | 29 | 41 | 20 | 61 | ||
| over 50 years of age | 3 | 2 | 5 | 5 | 1 | 6 | ||
| Japan | 0 | 0 | 0 | 0 | 0 | 0 | ||
| below 30 years of age | 0 | 0 | 0 | 0 | 0 | 0 | ||
| between 30 and 50 years of age | 0 | 0 | 0 | 0 | 0 | 0 | ||
| over 50 years of age | 0 | 0 | 0 | 0 | 0 | 0 | ||
| Total | 543 | 320 | 863 | 518 | 336 | 854 | ||
| below 30 years of age | 300 | 165 | 465 | 242 | 173 | 415 | ||
| between 30 and 50 years of age | 204 | 124 | 328 | 234 | 126 | 360 | ||
| over 50 years of age | 39 | 31 | 70 | 42 | 37 | 79 |
| Incoming unit turnover rate |
2021 | 2020 | |||||
|---|---|---|---|---|---|---|---|
| Male | Female | Total | Male | Female | Total | ||
| Italy | 1.34% | 1.16% | 2.50% | 0.49% | 0.34% | 0.83% | |
| France | 0.03% | 0.03% | 0.06% | 0.03% | 0.03% | 0.06% | |
| Germany | 0.03% | 0.03% | 0.06% | 0.03% | 0.03% | 0.06% | |
| Poland | 3.45% | 4.27% | 7.72% | 3.42% | 3.42% | 6.85% | |
| Russia | 0.03% | 0.12% | 0.15% | 0.03% | 0.03% | 0.06% | |
| % The Americas |
9.30% | 4.48% | 13.79% | 8.39% | 5.52% | 13.91% | |
| India | 1.68% | 0.55% | 2.23% | 2.10% | 0.86% | 2.96% | |
| China | 0.55% | 0.37% | 0.92% | 1.14% | 0.62% | 1.76% | |
| Japan | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | |
| Total | 16.41% | 11.01% | 27.43% | 15.64% | 10.86% | 26.50% |
| Outgoing turnover rate (excluding temporary staff) | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Outgoing turnover rate |
unit | 2021 | 2020 | |||||||||
| Male | Female | Total | Male | Female | Total | |||||||
| Italy | 1.31% | 0.64% | 1.95% | 1.42% | 0.56% | 1.97% | ||||||
| France | 0.03% | 0.06% | 0.09% | 0.03% | 0.06% | 0.09% | ||||||
| Germany | 0.03% | 0.06% | 0.09% | 0.00% | 0.03% | 0.03% | ||||||
| Poland | 2.62% | 3.05% | 5.67% | 3.05% | 3.12% | 6.17% | ||||||
| Russia | 0.03% | 0.15% | 0.18% | 0.00% | 0.12% | 0.12% | ||||||
| The Americas | % | 10.52% | 4.94% | 15.47% | 7.28% | 4.72% | 12.00% | |||||
| India | 1.19% | 0.52% | 1.71% | 2.41% | 0.89% | 3.30% | ||||||
| China | 0.82% | 0.34% | 1.16% | 1.79% | 0.86% | 2.65% | ||||||
| Japan | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | ||||||
| Total | 16.56% | 9.76% | 26.33% | 15.98% | 10.36% | 26.34% |
Scope: Elica S.p.A., Elicamex S.a.d. C.V, Elica Group Polska Sp.z o.o, Leonardo Services S.a. de C.V., Elica Inc., Zhejiang Elica Putian Electric Co. Ltd, Elica Trading LLC, Elica PB India Private Ltd., Elica France S.A.S., EMC FIME S.r.l. (not included in 2020 data)
Scope: Elica S.p.A., Elicamex S.a.d. C.V, Elica Group Polska Sp.z o.o, Leonardo Services S.a. de C.V., Elica Inc., Zhejiang Elica Putian Electric Co. Ltd, Elica Trading LLC, Elica PB India Private Ltd., Elica France S.A.S., EMC FIME S.r.l. (not included in 2020 data)
| Training hours and employees involved (excluding temporary workers) | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Training hours by gender and level | unit | 2021 | 2020 | ||||||||
| Male | Female | Total | Male | Female | Total | ||||||
| Executives | 365.0 | 65.0 | 430.0 | 203.0 | 9.0 | 212.0 | |||||
| Managers | 1,653.0 | 303 | 1,956.0 | 1,419.5 | 489.3 | 1,908.8 | |||||
| White-collar | Hours | 14,482.0 | 8,525 | 23,007 | 8,467 | 3,521.5 | 11,988.5 | ||||
| Blue-collar | 17,781.0 | 11,762.0 | 29,543.0 | 13,368.5 | 8,440.5 | 21,809 | |||||
| Total | 34,281.0 | 20,655.0 54,936.0 | 23,458.0 | 12,460.3 | 35,918.3 | ||||||
| Average training hours by gender | unit | 2021 | 2020 | ||||||||
| and personnel category | Male | Female | Total | Male | Female | Total | |||||
| Average training hours provided to Executives | 13.5 | 16.3 | 13.9 | 7.8 | 4.5 | 7.6 | |||||
| Average training hours provided to managers | 13.3 | 11.2 | 13.0 | 11.4 | 20.4 | 12.9 | |||||
| Average training hours provided to white-col lar workers |
Hours No. |
21.0 | 25.4 | 22.4 | 12.3 | 10.5 | 11.7 | ||||
| Average training hours provided to blue-collar workers |
15.7 | 12.6 | 14.2 | 11.7 | 9.4 | 10.7 |
| Training hours and employees involved (excluding temporary workers) | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Training hours by gender and level | unit | 2021 | 2020 | ||||||||
| Male | Female | Total | Male | Female | Total | ||||||
| Executives | 365.0 | 65.0 | 430.0 | 203.0 | 9.0 | 212.0 | |||||
| Managers | 1,653.0 | 303 | 1,956.0 | 1,419.5 | 489.3 | 1,908.8 | |||||
| White-collar | Hours | 14,482.0 | 8,525 | 23,007 | 8,467 | 3,521.5 | 11,988.5 | ||||
| Blue-collar | 17,781.0 | 11,762.0 | 29,543.0 | 13,368.5 | 8,440.5 | 21,809 | |||||
| Total | 34,281.0 | 20,655.0 54,936.0 | 23,458.0 | 12,460.3 | 35,918.3 | ||||||
| Average training hours by gender | unit | 2021 | 2020 | ||||||||
| and personnel category | Male | Female | Total | Male | Female | Total | |||||
| Average training hours provided to Executives | 13.5 | 16.3 | 13.9 | 7.8 | 4.5 | 7.6 | |||||
| Average training hours provided to managers | 13.3 | 11.2 | 13.0 | 11.4 | 20.4 | 12.9 | |||||
| Average training hours provided to white-col lar workers |
Hours No. |
21.0 | 25.4 | 22.4 | 12.3 | 10.5 | 11.7 | ||||
| Average training hours provided to blue-collar workers |
15.7 | 12.6 | 14.2 | 11.7 | 9.4 | 10.7 |
Scope: Elica S.p.A., Elica Group Polska Sp.z o.o, Leonardo Services S.a. de C.V., Elica France S.A.S, Elica GmbH, Zhejiang Elica Putian Electric Co. Ltd, Elica Trading LLC, Air Force S.p.A. Elica PB India Private Ltd., EMC FIME S.r.l. (not included in 2020 data)
The Group's Ethics Code - with which all subsidiaries must comply - sets out Elica's commitment to human rights in its business activities, specifically relating to fundamental human rights issues such as the non-exploitation of minors, the non-use of forced labour, harassment in the workplace etc. All company employees, as well as any other party carrying out business in its name of or on its behalf, regardless of the scope of their work, are bound by this Ethics Code for these and for other issues.
Furthermore, certain contractual agreements with customers envisage the Elica Group's adherence to principles contained in their Codes of Conduct and compatible with its own Ethics Code. Consistent with these codes and internal policies, Elica had no instances of discrimination throughout the whole of 2021. Human Resources Management at Elica has always been compliant with employee diversity and equal opportunity guarantees, with a zero-tolerance policy on discrimination.
Concrete testament to this commitment are the accolades and accreditations both the parent company and the individual subsidiary companies have achieved over the years (e.g. "Top Employers" Certification). The Organisation and Management Model (231 Model) envisages various methods for employees to report any episodes of discrimination.
Confirmation of Elica's commitment to non-discrimination is its personnel selection process that objectively assesses candidate skills without regard to strictly personal characteristics. An approach aimed at an objective assessment of a candidate's skills is particularly important in countries with potentially higher risks of discrimination. Indeed, a specific internal policy is implemented to regulate the entire recruiting process. Likewise, the same principles are applied in staff appraisal, reward and training processes.
The Group's companies draft their own bespoke training plans for managerial and operating personnel based on their individual requirements and development goals, prioritising their designated business goals.
Despite the ongoing pandemic, Elica invested in both remote and in-person training in 2021. Compared to the previous year, approximately 19,000 more hours of related training were delivered. This large difference (+53%) is primarily due to the recovery of hours not delivered in 2020 but still confirms an upward trend (+26%) from the total hours delivered in the pre-pandemic period in 2019. In Italy, the focus of training topics was mainly on managerial and technical areas, in line with HR strategy.
In fact, 2021 saw the foundation of the Elica Aspirations Lab, a space dedicated to the aspirations of staff and to stimulating innovation through workshops and training courses. A place where ideas are explored, tested and improved with a view to development in addition to professional, intellectual and personal growth.
The Group has set itself the goal of training excellence.
Finally, its choice of qualified teachers is underpinned by verifying qua-
The training programmes are furthermore based on mapped needs, in line with projected needs and levels of priority. In 2021, training efforts concentrated on three main focus areas: foreign languages, soft skills, and upskilling of individual technical competencies.
While respecting priority and urgency criteria, the goal is to guarantee training for as many employees as possible.
lifications and accreditations. tion with leading business schools.
All investments in managerial training are aimed at developing skills for the optimal coverage of roles and succession planning.
In addition, the company invests in certain high potential resources, with dedicated personalised general management programs in collabora-
At Elica, we want to develop a pleasant, stimulating environment that encourages employees to develop and learn new skills.
The Group's training and development plans aim to transmit satisfaction while stimulating employees not only to improve in what they do, but also
to rise to new challenges.
The Elica Group, in accordance with its Sustainability, Quality, Environment and Safety Policy and its Ethics Code, works on an ongoing basis to ensure that its employees, collaborators and the people who work for it have a fair, safe and non-discriminatory workplace. In this regard, it acts within the local and international regulatory framework for each of the Group's sites, based on the Universal Declaration of Human Rights and the conventions of the International Labour Organisation (ILO).
The policies adopted by Elica to manage employee health and safety can be summarised in the cardinal principle that states: "Health and safety in the workplace is everybody's responsibility, manifest not only in the safe and proper conduct in one's own work, but also by constantly creating the ideal conditions for this to happen".
This principle is expressly referred to in the document "OUR POLICY: SUSTAINABLE DEVELOPMENT, QUALITY, ENVIRONMENT AND SA-FETY", last updated in June 2021.
Ensuring a working environment that complies with the strictest health and safety requirements for every one of Elica's staff is one of the Group's most fundamental responsibilities. To achieve this, Elica carries out constant checks and periodic reviews to ensure that its employees' health and safety are effectively safeguarded, through the creation of healthy and welcoming working conditions. To continue progress on the minimisation of risk factors and therefore the likelihood of accidents and work-related ill health, a range of preventative programmes were introduced to make improvements in the workplace, through the active and ongoing involvement of all employees. The main tool included in the WCM system that is systematically adopted in this area is known as the Heinrich Pyramid, which classifies all events involving: accidents, use of first aid, near-accidents, unsafe conditions, and unsafe behaviour. These events are systematically recorded through reports made by all staff involved and evaluated and analysed to identify their root causes. These, when processed with appropriate corrective andor preventive measures, allow the local Health & Safety teams to constantly improve the Health and Safety conditions at the company site. Of particular importance is the presence at the corporate level of an EHS department, which provides a governance structure to overview and centrally coordinate health and safety aspects. This structure makes it possible to constantly monitor KPIs (Frequency Index, Severity Index and Number of Injuries), and KAIs (Second Level Reports) which are discussed at monthly EHS staff meetings to evaluate the progress of the improvement projects put in place.
To minimise risk factors and therefore the likelihood of accidents and work-related ill health, a range of preventative programmes were introduced to make improvements in the workplace, through the active and systematic involvement of all employees. In order to guarantee the highest standards of health and safety for its personnel, Elica has adopted a structured approach towards this objective, especially in the workplace, also in consideration of the challenges and specific issues deriving from the Company's geographical diversification. In compliance with local legislative requirements, in assessing risks Elica takes into consideration all the company processes introduced to its production plant, as well as the personnel and operators of contractors who have access to the various sites and facilities.
At all sites, risk assessments have been conducted in collaboration with the units identified within the company's security organisation, engaging the worker safety representatives and the workers themselves through meetings and interviews in the workplace. Evaluations are revised when changes are made to production processes or work organisation which are significant for worker health and safety, corresponding to the degree of change in technology, prevention or protection, or following significant accidents or when the results of health monitoring suggest such re-evaluations are necessary.
In any event, the risk assessment process and the risk assessment document are subject to analysis in conjunction with the annual meetings that are held at each site, during which the benefits of implementing current measures are assessed and areas of potential improvement are planned. The significant risks inherent in production processes are mainly associated with manual processes in mechanical work and assembly, or concerning the operation or use of machine tools and transport equipment.
In order to limit significant risks, adequate technical, organisational and procedural measures are implemented, and an ongoing focus is placed on research and the proper provision, to all personnel involved, of the most effective personal protective equipment.
(accident involving people or objects avoided)
(conditions that are dangerous for people or objects)
(actions that are dangerous for people or objects)
In the context of efforts for continuous improvement, the Heinrich Pyramid tool is systematically fed with all events related to:
– injuries;
Events recorded on the Pyramid are collected by filling out special forms by all personnel appropriately involved, which during 2021 produced 8,134 safety reports. These become an active part of continuous improvement as they are analysed to identify the root cause and to develop appropriate corrective andor preventive actions that local Health & Safety teams will then implement at sites.
As a result of the activities described above, the number of accidents29 was reduced by 36.4%, i.e. from 11 in 2020 to 7 in 2021, and the Frequency Index thus decreased by 39%.
Maintaining ISO 45001-2015 certification was one of the Elica Group's main achievements in 2021 and represents a fundamental step in providing a methodology to manage risks related to worker health and safety. This certification will be extended to the Mexico production plant in 2022 and the Poland plant in 2023.
The health emergency caused by the spread of the COVID-19 pandemic has led to the introduction of organisational, procedural and technical measures to prevent contagion in the workplace with the introduction of specific company protocols. Last but not least, the indications contained in the "Shared Protocol for Regulating Measures to Combat and Contain the Spread of COVID-19 Virus in the Workplace" were signed by the Government along with management and labour organisations on April 6, 2021, and have been fully implemented.
Company Control Committees have been set up at central and local level to verify the application of the rules to combat and contain the spread of the COVID-19 virus in the workplace. At the same time, and in collaboration with occupational health doctors, specific strategies have been defined to contain the virus for those who test positive or are suspected to be positive (nasopharyngeal swabs, company contact tracing, etc.). These have enabled the Group to provide an excellent response to the pandemic, guaranteeing working continuity in an ever-changing emergency context.
The Heinrich Pyramid - Safety
Significant events that occurred in 2021 were accidents involving bruisessprains and moving materials hitting the body (in one case).
| Employee* workplace accidents - Elica Group | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| unit | 2021 | 2020 | |||||||
| Male | Female | Total | Male | Female | Total | ||||
| Number of deaths | Elica S.p.A. | Iso 45001 | No. | 0 | 0 | 0 | 0 | 0 | 0 |
| EMC FIME S.r.l. | 0 | 0 | 0 | n.a. | n.a. | n.a. | |||
| Air Force | 0 | 0 | 0 | 0 | 0 | 0 | |||
| Mexico | 0 | 0 | 0 | 0 | 0 | 0 | |||
| Poland | 0 | 0 | 0 | 0 | 0 | 0 | |||
| China | Iso 45001 | 0 | 0 | 0 | 0 | 0 | 0 | ||
| India | Iso 45001 | 0 | 0 | 0 | 0 | 0 | 0 | ||
| Total | 0 | 0 | 0 | 0 | 0 | 0 | |||
| Number of work | Elica S.p.A. | Iso 45001 | 0 | 0 | 0 | 1 | - | 1 | |
| related injuries with serious consequences |
EMC FIME S.r.l. | 0 | 0 | 0 | n.a. | n.a. | n.a. | ||
| ** | Air Force | 0 | 0 | 0 | 0 | - | 0 | ||
| Mexico | 0 | 0 | 0 | 2 | - | 2 | |||
| Poland | 0 | 0 | 0 | 0 | - | 0 | |||
| China | Iso 45001 | 0 | 0 | 0 | 0 | - | 0 | ||
| India | Iso 45001 | 0 | 0 | 0 | 0 | - | 0 | ||
| Total | 0 | 0 | 0 | 3 | 0 | 3 | |||
| Number of work | Elica S.p.A. | Iso 45001 | 3 | 1 | 4 | 1 | 0 | 1 | |
| related injuries | EMC FIME S.r.l. | 0 | 0 | 0 | n.a. | n.a. | n.a. | ||
| Air Force | 1 | 0 | 1 | 2 | 0 | 2 | |||
| Mexico | 0 | 0 | 0 | 4 | 2 | 6 | |||
| Poland | 0 | 1 | 1 | 1 | 1 | 2 | |||
| China | Iso 45001 | 1 | 0 | 1 | 0 | 0 | 0 | ||
| India | Iso 45001 | 0 | 0 | 0 | 0 | 0 | 0 | ||
| Total | 5 | 2 | 7 | 8 | 3 | 11 | |||
| "On-commute" | Elica S.p.A. | Iso 45001 | 0 | 0 | 0 | 0 | 0 | 0 | |
| injuries*** | EMC FIME S.r.l. | 0 | 0 | 0 | n.a. | n.a. | n.a. | ||
| Air Force | 0 | 0 | 0 | 0 | 0 | 0 | |||
| Mexico | 4 | 4 | 8 | 5 | 4 | 9 | |||
| Poland | 0 | 0 | 0 | 1 | 2 | 3 | |||
| China | Iso 45001 | 0 | 0 | 0 | 0 | 0 | 0 | ||
| India | Iso 45001 | 0 | 0 | 0 | 0 | 0 | 0 | ||
| Total | 4 | 4 | 8 | 6 | 6 | 12 |
| Employee* workplace accidents - Elica Group | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| unit | 2021 | 2020 | |||||||
| Male | Female | Total | Male | Female | Total | ||||
| Total number of | Elica S.p.A. | Iso 45001 | No. | 3 | 1 | 4 | 1 | 0 | 1 |
| injuries | EMC FIME S.r.l. | 0 | 0 | 0 | na | na | na | ||
| Air Force | 1 | 0 | 1 | 2 | 0 | 2 | |||
| Mexico | 4 | 4 | 8 | 9 | 6 | 15 | |||
| Poland | 0 | 1 | 1 | 2 | 3 | 5 | |||
| China | Iso 45001 | 1 | 0 | 1 | 0 | 0 | 0 | ||
| India | Iso 45001 | 0 | 0 | 0 | 0 | 0 | 0 | ||
| Total | 9 | 6 | 15 | 14 | 9 | 23 | |||
| Hours worked | Elica S.p.A. | Iso 45001 | 1,040,995 | 596,512 | 1,637,507 | 985,172 | 553,746 | 1,538,918 | |
| EMC FIME S.r.l. | 35,549 | 35,284 | 70,833 | n.a. | n.a. | n.a. | |||
| Air Force | 105,364 | 76,161 | 181,525 | 91,383 | 61,965 | 153,348 | |||
| Mexico | 1,018,851 | 603,523 | 1,622,374 1,033,024 | 382,077 | 1,415,101 | ||||
| Poland | 707,986 | 1,018,808 1,726,794 | 639,881 | 920,804 1,560,685 | |||||
| China | Iso 45001 | 153,039 | 89,880 | 242,919 | 140,088 | 68,800 | 208,888 | ||
| India | Iso 45001 | 685,398 | 89,341 | 774,738 | 1,005,784 | 116,021 | 1,121,805 | ||
| Total | 3,747,182 2,509,509 6,256,690 3,895,332 2,103,413 5,998,745 |
| 2021 | 2020 | |||||||
|---|---|---|---|---|---|---|---|---|
| Male | Female | Total | Male | Female | Total | |||
| Death rate | Elica S.p.A. | Iso 45001 | - | - | - | - | - | - |
| EMC FIME S.r.l. | - | - | - | na | na | na | ||
| Air Force | - | - | - | - | - | - | ||
| Mexico | - | - | - | - | - | - | ||
| Poland | - | - | - | - | - | - | ||
| China | Iso 45001 | - | - | - | - | - | - | |
| India | Iso 45001 | - | - | - | - | - | - | |
| Total | - | - | - | - | - | - | ||
| Rate of work-related | Elica S.p.A. | Iso 45001 | - | - | - | 1.015 | - | 0.650 |
| injuries with serious consequences |
EMC FIME S.r.l. | - | - | - | na | na | na | |
| Air Force | - | - | - | - | - | 0 | ||
| Mexico | - | - | - | 1.936 | - | 1.413 | ||
| Poland | - | - | - | - | - | 0 | ||
| China | Iso 45001 | - | - | - | - | - | 0 | |
| India | Iso 45001 | - | - | - | - | - | 0 | |
| Total | - | - | - | 0.770 | 0 | 0.500 | ||
| Rate of recordable | Elica S.p.A. | Iso 45001 | 2.882 | 1.676 | 2.443 | 1.015 | - | 0.650 |
| work-related injury | EMC FIME S.r.l. | - | - | - | na | na | na | |
| Air Force | 9.491 | - | 5.509 | 21.886 | - | 13.042 | ||
| Mexico | - | - | - | 3.872 | 5.235 | 4.240 | ||
| Poland | - | 0.982 | 0.579 | 1.563 | 1.086 | 1.281 | ||
| China | Iso 45001 | 6.534 | - | 4.117 | - | - | - | |
| India | Iso 45001 | - | - | - | - | - | - | |
| Total | 1.334 | 0.797 | 1.119 | 2.054 | 1.426 | 1.834 | ||
| Total work-related | Elica S.p.A. | Iso 45001 | 2.882 | 1.676 | 2.443 | 1.015 | - | 0.650 |
| injury rate | EMC FIME S.r.l. | - | - | - | na | na | na | |
| Air Force | 9.491 | - | 5.509 | 21.886 | - | 13.042 | ||
| Mexico | 3.926 | 6.628 | 4.931 | 8.712 | 15.704 | 10.600 | ||
| Poland | - | 0.982 | 0.579 | 3.126 | 3.258 | 3.204 | ||
| China | Iso 45001 | 6.534 | - | 4.117 | - | - | - | |
| India | Iso 45001 | - | - | - | - | - | - | |
| Total | 2.402 | 2.391 | 2.397 | 3.594 | 4.279 | 3.834 |
*The calculations of the injury indicators shown in the tables are based solely on injuries involving employees. Scope: Countries with production sites: Elica, Elicamex, Elica Group Polska, Putian, Air Force, Elica India, EMC FIME S.r.l. (not included in 2020 data)
** Work-related injury with serious consequences = A workplace accident that results in death or an injury from which the worker cannot recover, does not recover, or is not realistically expected to recover fully by returning to pre-accident health within 6 months. *** "On-commute" injuries refer to Elicamex and Elica Group Polska, where transportation is arranged by the company. ****Rates of death, injuries with serious consequences, and recordable injuries are calculated as: number of eventshours worked*1,000,000
The tables present the facilities with a certified Management System in accordance with the UNI EN ISO 45001:2018 standard
| Near misses recorded | ||
|---|---|---|
| Near misses recorded | 2021 | 2020 |
| Italy | 89 | 143 |
| Poland | 21 | 18 |
| Mexico | 39 | 15 |
| China | 0 | - |
| India | 0 | - |
| Total | 149 | 176 |
Scope: Countries with production sites: Elica, Elicamex, Elica Group Polska, Putian, Air Force, Elica India
Elica considers industrial relations to be a fundamental value based on constant dialogue between the parties and on mutual respect for roles and prerogatives with a view to achieving Company competitiveness.
On December 9, 2021, the labour dispute which began on March 31, 2021 came to a satisfactory conclusion with the signing of an agreement that enables the achievement of the strategic objectives set out in the business plan, while mitigating the impact on employment and converging towards a sustainable long-term course of action. An industrial model has been created that allows the Company to be competitive in an increasingly international home appliance market. In addition, through industrial diversification and relations with other companies in the area, it will be possible to reabsorb a significant portion of the staff made redundant through implementation of the Plan. The solidity of the local social system will therefore also be guaranteed. This agreement marks for Elica the beginning of a new phase of stable industrial relations based on dialogue.
| Performance indicators Collective bargaining agreements |
|||||||
|---|---|---|---|---|---|---|---|
| Employees covered by collective bargaining agreements | unit | 2021 | 2020 | ||||
| Employees covered by collective bargaining agreements | No. | 1,999 | 2,048 | ||||
| Total employees | 3,278 | 3,242 | |||||
| Percentage | % | 61% | 63% |
Scope: Elica S.p.A., Elicamex S.a.d. C.V, Elica Group Polska Sp.z o.o, Leonardo Services S.a. de C.V., Elica Inc., Zhejiang Elica Putian Electric Co. Ltd, Elica Trading LLC, Elica PB India Private Ltd., Elica France S.A.S., EMC FIME S.r.l. (not included in 2020 data)
All Group companies with production sites (except Air Force) imple-
ment management systems certified to standard ISO 9001:201530. As regards finished products (range hoods, cooktops, fragrance diffusers and air quality monitoring systems), our policy is essentially to bring to market products that are fully compliant with all applicable local and international legislation.
Each year the Group certifies all new products brought to market and re-certifies all products that have seen changes in materials andor components to ensure that they comply with health and safety standards and with all Regulations, Directives and Rules applicable in the countries of
sale.
At all of the Group's production sites, both finished products and motors are 100% tested in terms of safety and functionality with the use of suitable testing stations. For more than ten years there has been extensive collaboration with UL INTERNaTIONaL31, an organisation that certifies products for safety and electromagnetic compatibility and a global leader in appliance certification for the EU, US and Canadian markets.
Elica constantly focuses on product safety, certification and innovation, particularly through the activities of its EPL Laboratory, which is internationally certified for the testing of safety, electromagnetic compatibility, energy consumption, performance, acoustics and the reliability of finished products, in addition to materials and components.
| Performance Indicators Percentage of categories of products and services for which health and safety impacts on consumers are assessed (e.g., product testing). |
|||
|---|---|---|---|
| ProductsServices | unit | 2021 | 2020 |
| Products analysed for risks relating to consumer health and safety | No. | 2,640 | 3,458 |
| Products in portfolio (number of SKUs) | 8,468 | 9,342 | |
| Products previously analysed for risks relating to health and safety (befo re the reporting year) |
5,828 | 5,884 | |
| Percent of products analysed for health and safety risk during the year | % | 31% | 37% |
| Percent of products analysed for health and safety (total) | 100% | 100% |
Scope: Elica S.p.A., Elicamex, Elica Group Polska Sp. z o.o, Air Force S.p.A., Zhejiang Elica Putian Electric Co. Ltd, Elica PB India Private Ltd., Ariafina Co. Ltd.
30. International standard indicating requirement for an effective quality management system
31. UNI EN ISOIEC 17025 Certificate by Accredia (www.accredia.it), certified CTFst3 and CTDP compliant by UL International and certified WMT compliant by CQC
It has been certified CTF Stage 332 by UL for the issuance of CB33 and DEMKO34 certificates, CTDP35 by UL for the issuance of UL and cULus36 certificates, WMT37 by CQC38 for the issuance of the CCC mark and Chinese Energy Label. The Laboratory is also certified by Accredia39 and is therefore part of the mutually recognised internationally ILAC-MRA test laboratories for Safety, Performance and Electromagnetic and Acoustics Compatibility of finished products and Components certification (issued by the Italyn Government and recognised worldwide).
This policy also covers the finished products of the Chinese and Indian subsidiaries sold within the European Union.
Elica has begun to develop a new process of testing finished products that, by involving employees with roles external to production, aims to simulate customer experience. The objective of this process is to reveal eventual defects or malfunctioning prior to market release and reduce the rate of latent defects, above all in terms of safety, but also in terms of reliability of products over time.
Based on the standard procedures used to design its platforms and study product manufacturing feasibility, the Group also conducts analyses of residual product risks with the aid of EPL and external certification bodies (e.g. UL, VDE etc). On the basis of the findings, the potential residual risks are:
Some of them may be associated with possible risks of fire or electromagnetic disturbances.
As a result of the aforementioned monitoring and certification system, the number of episodes of non-conformity is not particularly significant. If loss claims filed with insurers are taken as the basis for evaluation, in 2021 there were nine cases.
32. The Customer Testing Facilities (CTF) programme was established by the Institute of Electrical and Electronics Engineers to enable use of the manufacturer's in-house laboratory for testing and CB certification purposes (see note 39). CTF Stage 3 level is the highest level possible for a company laboratory, accepted by all states worldwide (in accordance with European and IEC standards).
33. CB is the certificate issued by UL as evidence of the Safety of products in conformity with European IEC standards, valid in all non-European countries, except the USA and Canada.
34. DEMKO is the certificate and marking issued by UL as evidence of the safety of products in conformity with European standards (EN).
35. UL's Customer Test Data Program is the equivalent of CTF Stage 3, but for the markets of the USA & Canada (therefore in accordance with UL standards).
36. The cULus certificate is issued by UL as evidence of the Safety of products in conformity with US standards (established by UL) extended to Canadian standards, for the markets of the USA and Canada.
37. WMT is the Witness Manufacturer Testing Programme of CQC (see note 44), the highest level of accreditation granted by CQC to laboratories not under their direct control, of which EPL is currently the only one located outside of China.
38. CQC is the certification body, or National Competent Body, for China.
For further information, please see
www.cqc.com.cnwwwenglish.
39. ILAC-MRA Accredia accreditation, the Italyn Accreditation Body is the only national organisation authorised by the State to carry out accreditation activities. Accredia is the only National accreditation body authorised by the Italyn government to certify that certification and inspection bodies, as well as testing, calibration and food safety laboratories, have the necessary expertise to adequately evaluate the conformity of products, processes and systems to reference standards. International agreements attest to the validity and credibility of accreditation as an effective tool in the qualification of Conformity Assessment Operators for European and global marketplaces, ensuring recognition of the equivalence of accreditation activities carried out under all signatory members within the accreditation system administered by IAF-ILAC internationally and by EA at the regional (European) level.
For finished products in the cooking area (range hoods and induction ranges) and for kitchen hoods, the Elica Group provides consumers with a set of information aimed at protecting their main rights (health, safety, quality of products and services and adequate information). This information is provided in the form of labels affixed directly to the product or packaging and documentation accompanying the product, enabling safe use of the products and services and providing information about the contents and, in particular, about the substances that could generate a social impact, how to dispose of the product and the related environmental and social impacts and the product's energy consumption (Energy Label, Product Sheet and Ecodesign).
The origins of product components are not disclosed to consumers but is available from the company as it is included in specific certifications (appendix 1 to the CB test report on Safety certification).
Product managers determine the documents and labels that are to accompany products. The company's Windchill PDM Link system is used to begin the process of designing the documentation and labelling.
In the cases of Elica S.p.A., Elica Group Polska Sp.z o.o, Elica Gmbh, Elica Trading LLC and Elica France S.A.S., all documentation (e.g., installation, use and maintenance manuals) and labels affixed to products and packaging are prepared by the technical services and EPL (e.g.: Energy Label). All products are validated by the EPL laboratory. They are also certified by a third-party organisation, even when marketed solely in the EU, where the EC self-certification would be sufficient. This procedure also applies to finished products from the Chinese subsidiary sold within the European Union.
Cooking Business Unit
| Performance Indicators Episodes of non-compliance relating to the impacts on health and safety of products and services |
|||||||
|---|---|---|---|---|---|---|---|
| Non-Conformity | unit | 2021 | 2020 | ||||
| Incidents of non-compliance concerning the health and safety impacts of products and services |
9 | 4 | |||||
| Cases of non-compliance with the self-governance codes | No. | 0 | 0 | ||||
| Total | 9 | 4 |
Scope: Elica S.p.A., Elica Group Polska Sp.z o.o., Elicamex S.a.d. C.V, Elica Inc., Zhejiang Elica Putian Electric Co.Ltd, Elica Trading LLC, Air Force S.p.A., Elica France S.A.S, Elica GmbH, Elica PB India Private Ltd, Ariafina
In the case of Elicamex S.a.d. C.V, the accredited local internal laboratory validates and provides the documentation for the customer, in concert with local certification, with support and coordination from EPL Italy. In the case of Zhejiang Elica Putian Electric Co. Ltd, products intended for the Chinese market and for the markets of South-East Asia are CCC
certified by external laboratories. In the case of Elica PB India Private Ltd. and Ariafina Co. Ltd, product documentation and labels comply with local legislation.
EMC FIME S.r.l. operates according to a business-to-business model, meaning that the products it supplies are assembled by its customers into their products (such as boilers, water heaters, ovens, refrigerators and kitchen hoods) to then in turn be brought to market for end consumers.
Accordingly, the unit designs, sells and produces based on the information requested by the customer on the agreed technical specifications and, where applicable, the contract signed. This information may be included in the product label or provided in separate technical documentation: designs, certificates of approval by third parties relating to product safety, preferred origin of the product, quality specifications, logistical specifications andor specifications of another kind.
On the basis of the agreed specifications for each order, the set of direct or indirect information required for the project is entered into the Windchill PDMLink management system and the Product Development Procedure is applied to ensure that the information is verified and available.
The Project Manager is then responsible for initiating the preparation of the documents and labels of a technical nature that are to be provided with the product and for monitoring and coordinating project progress until each project is concluded.
In 2021 Elica did not receive any sanctions and was not held liable for disputes arising out of information on and labelling of the products and services it provides.
(*) Scope of finished products: Elica brand hoods, range hoods and induction ranges.It is assumed that what applies to these product categories for the Elica brand may be extended to all Elica Group induction ranges, range hoods and kitchen hoods marketed by: Elica S.p.A., Elica Group Polska Sp.z o.o, Elica Gmbh, Elica Trading LLC, Elica France S.A.S. The analysis also applies to the finished products of the Chinese subsidiary sold in the European Union (both own brands and third-party brands). The "Fragrance diffuser" product type is not included in the indicator, because it is subject solely to safety and not to energy label and eco-design
| Performance Indicators Product and service information and labelling requirements |
|||||||||
|---|---|---|---|---|---|---|---|---|---|
| Item | Description | COOKING | MOTORS | ||||||
| Origin of components | YES | YES | |||||||
| Requirements for company disclosure and product labelling and services policies |
Content, and in particular substances that could generate an environmental or social impact |
YES | YES | ||||||
| Safe use of products and services | YES | YES | |||||||
| Product disposal methods and the related environmental and social impacts |
YES | na | |||||||
| Energy label; Product Sheet and Ecodesign | YES | na | |||||||
| Region | Failure Rate unit |
2021 | 2020 | ||||||
| Finished products* | Percentage of significant categories of products and services covered and assessed for compliance with the above procedures** % |
61.6% | 62.3% | ||||||
| Motors | Percentage of significant categories of products and services covered and assessed for compliance with the above procedures |
99.4% | 100% |
(**) The ratio of the net sales generated by the finished products analysed (see the field "(*) Scope of finished products") and the Elica Group's net sales for the following categories of finished products: hoods, range hoods and induction ranges).
As regards privacy, the risks connected to possible violations regarding consumers and customers in general are chiefly linked to computer hacking, phishing attempts and in particular to those fraudulent activities carried out online and aimed at the illegal removal of personal data.
In 2021, Elica adopted an Organisational Model and set up a Privacy Committee in order to further promote the monitoring of and compliance with personal data protection regulations, and to guarantee the basic principles of privacy by default and by design.
In addition to a policy that lays down the general cardinal principles applied by and applicable to all the companies of the Elica Group ("General Privacy Policy"), a number of other policies and procedures have already been implemented in previous years at Group level and individually by the European Subsidiaries, including:
Other policies and procedures have been prepared and formalised:
A privacy training course for Executives and managers was held in 2021. In addition, the training campaign on phishing and cyber security for all the company's employees continued.
Compliance activities at the subsidiaries are managed by the same privacy consultant appointed by the Parent Elica S.p.A., with the support of local consultants.
Elica S.p.A., Elica France, Elica GmbH and Elica Group Polska have appointed a Data Privacy Officer (DPO).
For Elica S.p.A and Elica France this is a shared DPO, while the DPOs for Elica GmbH and Elica Group Polska are dedicated and appointed under separate agreements.
Due in part to the actions taken and safeguards put into place, the Group did not identify any data breaches in 2021. Specifically, no complaints were received for actual or potential personal data violations, where "complaints" exclusively refers to questions, requests or disputes initiated by third parties and does not include issues identified autonomously by the Company.
| GRI Standard | Disclosure | Paragraph at page Omissions | ||
|---|---|---|---|---|
| General Disclosures | ||||
| GRI 102: | Name of the organization | 102-1 | 20 | |
| General | Activities, brands, products, and services | 102-2 | 20 | |
| Disclosures 2016 |
Location of headquarters | 102-3 | 20 | |
| Location of operations | 102-4 | 25 | ||
| Ownership and legal form | 102-5 | 39 | ||
| Markets served | 102-6 | 26 | ||
| Scale of the organization | 102-7 | 20 | ||
| Information on employees and other workers | 102-8 | 23 | ||
| Supply chain | 102-9 | 36 | ||
| External initiatives | 102-12 | 34 | ||
| Membership of associations | 102-13 | 29 | ||
| Statement from senior decision-maker | 102-14 | 8 | ||
| Key impacts, risks, and opportunities | 102-15 | 45-45-47 | ||
| Values, principles, standards, and norms of behavior | 102-16 | 18 | ||
| Governance structure | 102-18 | 38 | ||
| Composition of the highest governance body and its committees |
102-22 | 41 | ||
| Nominating and selecting the highest governance body | 102-24 | 41 | ||
| Conflicts of interest | 102-25 | 44 | ||
| Role of highest governance body in setting purpose, values, and strategy |
102-26 | 43 | ||
| Evaluating the highest governance body's performance | 102-28 | 41 | ||
| Effectiveness of risk management processes | 102-30 | 45 | ||
| Highest governance body's role in sustainability reporting | 102-32 | 41 | ||
| Remuneration policies | 102-35 | 42 | ||
| Process for determining remuneration | 102-36 | 42 | ||
| Annual total compensation ratio | 102-38 | 43 | ||
| List of stakeholder groups | 102-40 | 55 | ||
| Collective bargaining agreements | 102-41 | 128 | ||
| Identifying and selecting stakeholder | 102-42 | 55 | ||
| Entities included in the consolidated financial statements | 102-45 | 12 | ||
| Defining report content and topic Boundaries | 102-46 | 61 | ||
| List of material topics | 102-47 | 63 | ||
| Changes in reporting | 102-49 | 64 | ||
| Reporting period | 102-50 | 10 | ||
| Date of most recent report | 102-51 | 10 |
Reporting cycle 102-52 10-61
Contact point for questions regarding the report 102-53 11 Claims of reporting in accordance with the GRI Standards 102-54 10 GRI content index 102-55 136
| GRI Standard | Disclosure | Paragraph at page Omissions | ||
|---|---|---|---|---|
| Economic performance | ||||
| GRI 201 | The management approach and its components | 103-2 | 74 | |
| Economic Performance 2016 |
Key impacts, risks, and opportunities | 102-15 | 74 | |
| Direct economic value generated and distributed | 201-1 | 74-75 | ||
| Combatting corruption | ||||
| GRI 205 | The management approach and its components | 103-2 | 82 | |
| Anti-corruption 2016 |
Key impacts, risks, and opportunities | 102-15 | 82 | |
| Operations assessed for risks related to corruption | 205-1 | 84 | ||
| Communication and training about anti-corruption policies and procedures |
205-2 | 85 | ||
| Confirmed incidents of corruption and actions taken | 205-3 | 84 | ||
| Tax | ||||
| GRI 207 Tax 2019 | The management approach and its components | 103-2 | 76 | |
| Key impacts, risks, and opportunities | 102-15 | 76 | ||
| Country by country reporting | 207-4 | 77 | ||
| Materials | ||||
| GRI 301 | The management approach and its components | 103-2 | 100 | |
| Materials 2016 | Key impacts, risks, and opportunities | 102-15 | 100 | |
| Materials used by weight or volume | 301-1 | 101 | ||
| Energy consumption | ||||
| GRI 302 Energy | The management approach and its components | 103-2 | 93 | |
| 2016 | Key impacts, risks, and opportunities | 102-15 | 93 | |
| Energy consumption within the organization | 302-1 | 97 | ||
| Energy consumption outside of the organization | 302-2 | 98 |
| GRI Standard | Disclosure | Paragraph at page Omissions | |
|---|---|---|---|
| Atmospheric emissions | |||
| GRI 305 | The management approach and its components | 103-2 | 93 |
| Emissions 2016 | Key impacts, risks, and opportunities | 102-15 | 93 |
| Direct (Scope 1) GHG emissions | 305-1 | 98 | |
| Energy indirect (Scope 2) GHG emissions | 305-2 | 98 | |
| Other indirect (Scope 3) GHG emissions | 305-3 | 99 | |
| Waste | |||
| GRI 306 Waste | The management approach and its components | 103-2 | 102 |
| 2020 | Key impacts, risks, and opportunities | 102-15 | 102 |
| Waste generation and significant waste-related impacts | 306-1 | 102 | |
| Management of significant waste-related impacts | 306-2 | 102 | |
| Waste generated | 306-3 | 103 | |
| Waste diverted from disposal | 306-4 | 104 | |
| Waste directed to disposal | 306-5 | 105 | |
| Compliance with environmental laws | |||
| GRI 307 | The management approach and its components | 103-2 | 88 |
| Environmental Compliance 2016 |
Key impacts, risks, and opportunities | 102-15 | 88 |
| Non-compliance with environmental laws and regulations | 307-1 | 89 | |
| Supplier environmental assessment | |||
| GRI 308 Supplier | The management approach and its components | 103-2 | 106 |
| environmental assessment 2016 |
Key impacts, risks, and opportunities | 102-15 | 106 |
| New suppliers that were screened using environmental criteria |
308-1 | 107 | |
| Group employees | |||
| GRI 401 | The management approach and its components | 103-2 | 111 |
| Employment 2016 | Key impacts, risks, and opportunities | 102-15 | 111 |
| New employee hires and employee turnover | 401-1 | 114-116 | |
| Occupational health and safety | |||
| GRI 403 | The management approach and its components | 103-2 | 120 |
| Occupational Health and Safety |
Key impacts, risks, and opportunities | 102-15 | 120 |
| 2018 | Work related injuries | 403-9 | 124 |
| Training | |||
| GRI 404 Training | The management approach and its components | 103-2 | 118 |
| and Education 2016 | Key impacts, risks, and opportunities | 102-15 | 118 |
| Average hours of training per year per employee | 404-1 | 119 |
| Diversity and Equal Opportunity GRI 405 Diversity The management approach and its components 103-2 111-118 and Equal Key impacts, risks, and opportunities 102-15 111-118 Opportunity 2016 Diversity of governance bodies and employees 405-1 40-111-112 Fight against discrimination The management approach and its components 103-2 111-118 GRI 406 Non discrimination 2016 Key impacts, risks, and opportunities 102-15 111-118 Incidents of discrimination and corrective actions taken 406-1 118 Supplier social assessment The management approach and its components 103-2 106 GRI 414 Supplier Social Key impacts, risks, and opportunities 102-15 106 Assessment 2016 New suppliers that were screened using social criteria 414-1 107 Consumer Health and Safety GRI 416 Customer The management approach and its components 103-2 129 Health and Safety Key impacts, risks, and opportunities 102-15 129 2016 Assessment of the health and safety impacts 416-1 129 of product and service categories Incidents of non-compliance concerning 416-2 131 the health and safety impacts of products and services Correctness of the information provided to the consumer GRI 417 Marketing The management approach and its components 103-2 131 and Labeling 2016 Key impacts, risks, and opportunities 102-15 131 Requirements for product and service 417-1 133 information and labeling Consumer privacy protection 103-2 134 GRI 418 Customer The management approach and its components Privacy 2016 102-15 134 Key impacts, risks, and opportunities 418-1 134 Substantiated complaints concerning breaches of customer privacy and losses of customer data Group economic weight (financial highlights) NO GRI The management approach and its components 103-2 68 Key impacts, risks, and opportunities 102-15 68 Financial Highlights del Gruppo n.a. 69 |
GRI Standard | Disclosure | Paragraph at page Omissions |
|---|---|---|---|
| GRI Standard | Disclosure | Paragraph at page Omissions | ||
|---|---|---|---|---|
| Eco design | ||||
| NO GRI | The management approach and its components | 103-2 | 91 | |
| Key impacts, risks, and opportunities | 102-15 | 91 | ||
| Packaging reengineering projects concluded | n.a. | 92 | ||
| Reduction in annual indirect C02 equivalent amounts | n.a. | 92 | ||
| Innovation | ||||
| NO GRI | The management approach and its components | 103-2 | 78 | |
| Key impacts, risks, and opportunities | 102-15 | 78 | ||
| Patents | n.a. | 79 | ||
| Innovation flow effective implementation index | n.a. | 79 | ||
| After-sales service | ||||
| NO GRI | The management approach and its components | 103-2 | 80 | |
| Key impacts, risks, and opportunities | 102-15 | 80 | ||
| Service Level | n.a. | 81 | ||
| Speed of Service | n.a. | 81 | ||
| Right First Time | n.a. | 81 |
THE SUSTAINABILITY RECIPE THAT WE HAVE OFFERED YOU IS NOT A SECRET, BUT AN ASSET TO BE SHARED. THE FLAVOURS ARE THE FRUIT OF OUR COMPANY'S TRADITION AND INNOVATION. THE WISDOM WITH WHICH THE INGREDIENTS ARE MIXED CAN GIVE RISE TO UNEXPECTED RESULTS.
Revisione e organizzazione contabile
Via 1° Maggio, 150/A
To the board of directors of ELICA S.p.A.
Pursuant to article 3.10 of Legislative decree no. 254 of 30 December 2016 (the "decree") and article 5 of the Consob (the Italian Commission for listed companies and the stock exchange) Regulation adopted with Resolution no. 20267 of 18 January 2018, we have been engaged to perform a limited assurance engagement on the 2021 consolidated non-financial statement of the ELICA Group (the "group") prepared in accordance with article 4 of the decree and approved by the board of directors on 16 March 2022 (the "NFS").
Our procedures did not cover the information set out in the "Communications pursuant to Regulation (EU) 2020/852 (Taxonomy)" section of the NFS required by article 8 of Regulation (EU) 852 of 18 June 2020.
The directors are responsible for the preparation of an NFS in accordance with articles 3 and 4 of the decree and the "Global Reporting Initiative Sustainability Reporting Standards" issued by GRI - Global Reporting Initiative (the "GRI Standards"), selected as specified in the "Methodological notes" section of the NFS (the "GRI Standards – GRI-Referenced option), which they have identified as the reporting standards.
The directors are also responsible, within the terms established by the Italian law, for such internal control as they determine is necessary to enable the preparation of an NFS that is free from material misstatement, whether due to fraud or error.
Moreover, the directors are responsible for the identification of the content of the NFS, considering the aspects indicated in article 3.1 of the decree and the group's business and characteristics, to the extent necessary to enable an understanding of the group's business, performance, results and the impacts it generates.
The directors' responsibility also includes the design of an internal model for the management and organisation of the group's activities, as well as, with reference to the aspects identified and disclosed in the NFS, the group's policies and the identification and management of the risks generated or borne.
The Collegio Sindacale is responsible for overseeing, within the terms established by the Italian law, compliance with the decree's provisions.
We are independent in compliance with the independence and all other ethical requirements of the International Code of Ethics for Professional Accountants (including International Independence Standards, the IESBA Code) 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 company applies International Standard on Quality Control 1 (ISQC Italia 1) and, accordingly, maintains a system of quality control including documented policies and procedures regarding compliance with ethical requirements, professional standards and applicable legal and regulatory requirements.
Our responsibility is to express a conclusion, based on the procedures performed, about the compliance of the NFS with the requirements of the decree and the GRI Standards. We carried out our work in accordance with the criteria established by "International Standard on Assurance Engagements 3000 (revised) - Assurance Engagements other than Audits or Reviews of Historical Financial Information" ("ISAE 3000 revised"), issued by the International Auditing and Assurance Standards Board applicable to limited assurance engagements. This standard requires that we plan and perform the engagement to obtain limited assurance about whether the NFS is free from material misstatement. A limited assurance engagement is less in scope than a reasonable assurance engagement carried out in accordance with ISAE 3000 revised, and consequently does not enable us to obtain assurance that we would become aware of all significant matters and events that might be identified in a reasonable assurance engagement.
The procedures we performed on the NFS are based on our professional judgement and include inquiries, primarily of the parent's personnel responsible for the preparation of the information presented in the NFS, documental analyses, recalculations and other evidence gathering procedures, as appropriate.
Specifically, we carried out the following procedures:
into account the reporting standards applied.
Moreover, we checked the above against the disclosures presented in the NFS and carried out the procedures described in point 5.a).
Specifically, we held interviews and discussions with the parent's management personnel and personnel of Airforce S.p.A.. We also performed limited procedures on documentation to gather information on the processes and procedures used to gather, combine, process and transmit non-financial data and information to the office that prepares the NFS.
Furthermore, with respect to significant information, considering the group's business and characteristics:
Based on the procedures performed, nothing has come to our attention that causes us to believe that the 2021 consolidated non-financial statement of the ELICA Group has not been prepared, in all material respects, in accordance with the requirements of articles 3 and 4 of the decree and the GRI Standards - GRI-Referenced option. Our conclusion does not extend to the information set out in the "Communications pursuant to Regulation (EU) 2020/852 (Taxonomy)" section of the NFS required by
article 8 of Regulation (EU) 852 of 18 June 2020.
Ancona, 24 March 2022
KPMG S.p.A.
(signed on the original)
Gianluca Geminiani Director of Audit
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