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INTRODUCTION TO THE ANNUAL REPORT Sabaf’s progress towards Integrated Reporting The publication of Sabaf’s Annual Report, in its tenth edition this year, confirms the Group’s commitment, undertaken in 2005, to providing integrated reporting of its economic, social and environmental performance. Confirming the importance of integrated reporting as the new emerging corporate reporting model, work continued on the area at international level. In December 2013, the International Integrated Reporting Council (IIRC) presented the international framework on sustainability reporting, “The International <IR> Framework”, which sets the guidelines to follow in the preparation of an integrated report and its key contents. Integrated reporting represents a significant development in corporate reporting, which is increasingly focused on promoting cohesion and efficiency in the reporting process and adopting “integrated thinking”.
Sabaf was one of the first companies at international level to adopt integrated reporting, and intends to continue along this path, guided by the International Framework, in the knowledge that integrated, complete and transparent disclosure can benefit both companies themselves - through a better understanding of the various strategic strands and greater internal cohesion and the investor community, which can thereby gain a clearer understanding of the link between strategy, governance and company performance. Having won the 2013 Oscar di Bilancio in the Small and Medium-Sized Listed Company category, the jury also recognised Sabaf’s commitment to integrated reporting in 2014 by shortlisting it for the prestigious financial communication award.
Methodology Sections 1 – Business model and strategic approach, 2 – International operations and core markets and 4 – Social and environmental sustainability comprise the Annual Report at 31 December 2014, prepared in accordance with the G4 Sustainability Reporting Guidelines defined by GRI (Global Reporting Initiative) in 2013, and include the indicators laid down for the “Core” option reporting. The Group has, in fact, promptly updated its reporting system so as to be able, from this Annual Report, to present its results in accordance with the most recent guidelines. The Annual Report also refers to the AA 1000 (AccountAbility 1000) standards issued by AccountAbility, as regards the social reporting process and the dialogue with stakeholders. As in previous years, the process of defining content and determining materiality is based on GRI principles (materiality, inclusivity of stakeholders, sustainability and completeness). The reporting scope of the annual report corresponds to that of the consolidated financial statements. Section 3 – Governance, risk management, compliance and remuneration reports important information regarding the corporate governance structure and the company risk management system.
Sections 5 – Report on operations, 6 – Consolidated Financial Statements and 7 – Financial Statements of Sabaf S.p.A. make up the Annual Financial Report at 31 December 2014. Finally, the Report on Remuneration is provided, prepared pursuant to Article 123-ter of the Consolidated Law on Finance. Once again this year, the “non-financial indicators” include the results of operating and improving intangible fixed assets, the principal drivers that allow monitoring of the business strategy’s ability to create value in the medium to long term.
To ensure that the information contained in the Annual Report is reliable, only directly measurable figures are included, avoiding the use of estimates wherever possible. The calculations are based on the best information available or on sample-based surveys. Where they have been used, estimates are clearly indicated as such. The Annual Report was approved by the Board of Directors on 23 March 2015 and presented to shareholders at the Annual General Meeting held on 5 May 2015.