SABAF - ANNUAL REPORT 2014
SOCIAL AND ENVIRONMENTAL SUSTAINABILITY
77
SABAF and its suppliers THE SA8000 STANDARD AND SUPPLIERS In 2005 Sabaf S.p.A. was certified as compliant with the SA8000 (Social Accountability 8000) standard. The Company therefore requires its suppliers to respect – in all their activities – the standard’s principles as a basic prerequisite for building a lasting relationship based on the principles of social accountability. The supply contracts include an ethics clause, based on the SA8000 standard. that obligates suppliers to assure respect of human and social rights. More specifically, suppliers undertake to avoid using in their production processes persons below the legal minimum age set by law, to guarantee their workers a
safe workplace, to protect trade-union freedom, to comply with legislation on working hours, and to ensure that workers are paid the legal minimum wage. Failure to comply with or accept the principles of the SA8000 standard could lead to the supply relationship being terminated. In 2014, 32 audits (29 in 2013) were carried out at suppliers on quality, environmental and social-responsibility management, none of which revealed any critical instances of non-compliance. Suppliers were asked to take the appropriate measures to resolve any nonconformity of a non-critical nature.
PURCHASING ANALYSIS The Sabaf Group aims to promote development in the areas in which it operates, and therefore gives preference to local firms when choosing suppliers.
Sales generated outside the European Union mainly come from suppliers in China. Chinese suppliers have signed a clause to comply with the principles set out in the SA8000 standard.
Purchases made in Lombardy by the Group’s Italian companies represent 66.1% of the total, purchases made by Sabaf do Brazil from Brazilian suppliers account for 88.9% of the total, while purchases made by Sabaf Beyez from Turkish suppliers represent 76.6% of the total.
Geographical distribution of suppliers 16 2014
2013
IN THOUSANDS OF EURO
Sales
Province of Brescia
41,648
43.9%
44,099
49.1%
Italy
26,534
28.0%
25,958
28.9%
Rest of EU
9,999
10.5%
7,641
8.5%
Brazil
4,804
5.1%
4,689
5.2%
Turkey
4,000
4.2%
2,578
2.9%
China
5,879
6.2%
3,823
4.3%
Non EU - Others
1,929
2.0%
1,046
1.22%
TOTAL
94,793
100%
89,834
100%
Sabaf do Brasil and Sabaf Turkey mainly purchase their production materials from local suppliers. The main machinery items used (transfer machining and assembly equipment and die-casting burner presses) have instead been
%
Sales
%
imported from Italy to assure uniform group-wide manufacturing processes, particularly as regards quality and safety.
16 Figures for Group The 2013 figures have been recalculated to include the non-Italian companies, as these were not included in the previous financial statements.