2023 Sustainability Report
LETTER TO THE STAKEHOLDERS
Ever since Latteria Montello was founded more than 75 years ago, we have always paid considerable attention and, above all, responsibility to the territories and communities we work and come into contact with daily. Our actions have always fully respected the environment surrounding us, supporting supply chain players and the communities we interact with, in order to leave future generations a better, more sustainable, fairer world. In line with the concept of sustainable development and with its strategic integration in our activities, we want to carry on making the actions carried out so far coherent and establish new, ambitious goals to guide our growth. Besides being the answer to the environmental and social issues of our time, sustainability has now become a challenge for companies that want to continue creating long-term value. Well aware of these challenges and the opportunities associated with doing business sustainably, we have chosen to make sustainability a key lever to support our corporate growth path.
We are really proud to be able to present the second edition of Latteria Montello Sustainability Report, providing an organic account of our commitment, our goals and our sustainability performance, and encompassing not only the activities carried out during the 2022-2023 two-year period, but also the commitment of our Family and all our employees.
We work with care and dedication every day, making products that still follow the tradition and passion of cheese making, values in which we have always believed. The commitment we are making with this sustainability report is to be transparent for our stakeholders, narrating and reporting on our achievements and goals. We also wanted to project our commitment into the future by developing a Sustainability Plan that outlines our strategy defining projects and actions for the coming years, in synergy with the sustainable development goals of the UN agenda.
The path we have taken is a daily commitment involving all the players in our supply chain in a continuous growth process and that enables us to continuously improve our offer, to create wellbeing and opportunities for our employees, to be a point of reference for the community and make each of our products increasingly more sustainable; investing in cutting-edge technologies that respect the environment and spread that meaning of Italian family business that has always been the driving force behind us.
Silvia, Gianni, Alessandro Lazzarin
Latteria
Montello: a family history for over 75 years
1 chapter
LATTERIA MONTELLO: AN ITALIAN TRADITION
A love that was to accompany the company successes throughout the 1970s and 1980s, up until to the birth of the Nonno Nanni brand.
The story of Latteria Montello began in 1947 when our first cheese was produced by Giovanni Lazzarin, known as Nanni in a small cheese workshop in Giavera del Montello, in the province of Treviso. Since then, our company has always evolved in the tradition of genuine cheese, handing it down to the present day - to bring goodness and freshness to Italian tables. Within a few years, the dairy began to expand. Starting in 1955, milk no longer arrived at the dairy brought to it by local farmers in buckets and bins, but was collected at home in Giavera and the surrounding villages. However, it was in 1970 that the first, fresh cheese production facility was built, still in Giavera del Montello, and company management passed to Giovanni Lazzarin’s three sons: Luigi, Armando and Bruno. They took over the reins, carrying on their father’s valuable teachings and his love of cheese-making. A love that was to accompany the company successes throughout the 1970s and 1980s, up until to the birth of the Nonno Nanni brand. Its representative coloursthe salad green and red of the tomato - were the brainchild of Bruno, a lover of painting, inspired by the works of Arcimboldo, to celebrate the Mediterranean diet and its dietary benefits.
After more than 70 years, our story is that of a company at the forefront of production processes and consumer needs.
Anticipating the company’s main expansions in the early 2000s, the factory gradually grew as dairy production increased and our product range grew to 7,000 m2 . In addition to producing Stracchino, the company’s product range was expanded in 1988 and started to produce Squaquerello Nonno Nanni a sweet, creamy cheese that was to become one of the most popular. In the meantime, the distribution of Nonno Nanni branded products reached the entire country, becoming a symbol of the Italian table, thanks to the continuous innovations in quality and product preservation. It was in 1989 that the company implemented a new type of packaging to better preserve the quality and freshness of Stracchino during transport. In 1994, the company expanded and further diversified its product range, starting production of gnocchi and crespelle, with the birth of a second brand: Grandma Rina .
In the meantime, the expansion of Latteria Montello continued, establishing itself as a solid, well-rooted reality in the Treviso area, up to more than 100 employees and doubling its production area to 12,000 m2
In the following year, 1995, Latteria Montello became a S.p.A. (stock company) and began to distribute its products abroad. In order to sustain its growth, in this period the company built new facilities and replaced the first coagulator, installed in 1991, with a more modern, larger one.
In the early 2000s, new products were launched such as Stracchino allo Yogurt Stracchino with Probiotic ferment , and Robiola Nonno Nanni, for the first time introducing innovative products in a sector that had always been considered traditional. In 2001, the company increased its production capacity by further upgrading the coagulator. This became the largest in Europe for soft cheese production.
a classic of Italian communication, with Stracchino cheese flying over rural Italian landscapes to land on family tables, accompanied by the now famous Latteria Montello trademark soundtrack. After more than 70 years, our story is that of a company at the forefront of production processes and consumer needs. In 2014, we developed a new lactose-free product line and launched the company’s first spreadable cheese the following year; this is now available in a light version.
Today, Latteria Montello is a leading company in the Italian dairy sector, with facilities developed over an area of more than 20,000 m and addition of 5,000 m2 of purification plant and 2,000 m2 of space reserved for services.
Focus on the quality of our products has always accompanied our growth, respecting the cheese-making tradition and the sustainability of our production processes. In particular, company products are now known in the area thanks to the strength of the Nonno Nanni brand; it represents, in packaging, communication and advertising terms, the face of the company, its story and the values that Latteria Montello upholds and adopts on a daily basis. We approach our Sustainability Report with the responsibility to voice and shape our goals in truthful, transparent manner our performance and goals for the future.
20,000m
In 2008, the first Nonno Nanni ad went on air. It was to become of plant
COMPANY ORGANISATION
The registered office of our company has always remained in Giavera del Montello (TV).
Latteria Montello S.p.A. is a family business operating in the dairy sector. Through our state-of-the-art, high-capacity facility, highly qualified staff and certified quality processes, over the years, we have managed to carve out a leading role for ourselves in the Stracchino market.
The registered office of our company has always remained in Giavera del Montello (TV), where our main production and product development activities take place. From a corporate point of view, Latteria Montello is a joint-stock company administered by a Board of Directors (hereinafter also referred to as the “Board of Directors”) consisting of a minimum of two and a maximum of seven members, including the Chairman of the Board of Directors, and a Board of Statutory Auditors consisting of three statutory auditors, including the Chairman of the Board of Statutory Auditors, and two alternate auditors, appointed by the Shareholders’ Meeting. In addition to these bodies, there is a Supervisory Board consisting of two external members.
The Board of Directors is vested with all powers of ordinary and extraordinary administration, except those expressly reserved for the Shareholders’ Meeting by law or by the Articles of Association. Our organisational system is based on a distinct division of activities and responsibilities shared by the family and company management; this has been involved in running the company and supporting the business over the years.
Management activities are carried out through the traditional administration and control system; so the Board of Directors, the Shareholders’ Meeting and the Board of Statutory Auditors are convened and meet regularly.
The company is not subject to management and coordination.
1.3
OUR VALUES AND CORPORATE CULTURE
We are deeply attached to our values such as respect for legality and fundamental human rights based on clear, transparent rules and in tune with the external environment and community objectives. These values are at the heart of our corporate culture and mean we can respond dynamically to the challenges of a world that is increasingly attentive to the impacts of industrial processes on society and the environment. That is why we strive daily to improve our products and reshape our strategy. Through our Code of Ethics, we have developed a clear corporate culture providing a framework that guides our daily behaviour and helps sustain value in the medium to long term, with benefits for all our stakeholders. This culture is formally defined and integrated, and applied on a daily basis through the behaviour of employees; they drive the way we do business and are a key
Our culture is what has made us able to respond in the best possible way in these times of rapid change.
determinant of our success. In addition, managers are called upon to act through exemplary behaviour, demonstrating efficiency, loyalty and competence, and promoting, in the company, the values by which it is inspired.
Our culture is what has made us able to respond in the best possible way in these times of rapid change; keeping our values at the centre, we have been able to reshape our strategy and our products, driven by awareness and a strong sense of responsibility towards the art of cheese-making that we have been handing down for generations, together with our root values:
Proximity and humanity
Reassurance and reliability
Tradition and care
Inclusion
Goodness and quality
Environmental and social sustainability
Tradition and care:
We pass on our love for the cheese-making art, making products that are still based on the secrets taught by our grandfather, passed down through 3 generations in over 70 years. We always do things to the best of our ability, with care and dedication, striving to improve them over time, maintaining artisanal quality and respecting the values we have always believed in.
Goodness and quality:
We pass on our passion for good food, made with a few simple ingredients, respecting milk and natural processing times, taking great care over the production process. It is only like this that each taste of our products becomes a moment of pleasure and a true taste experience.
Inclusion:
We bring people together by creating an atmosphere of harmony and sharing. We respect others without any form of discrimination, value diversity and stimulate expression of everyone’s ideas.
Environmental and social sustainability:
We respect the environment around us through concrete actions, support the suppliers in our supply chain and the wider community through social initiatives that they most in need. Our goal is to leave future generations a better, more sustainable and fairer world.
Reassurance and reliability:
We strive to be a point of reference for people; a reliable brand that conveys a reassuring sense of human warmth.
Proximity and humanity:
We strive to be close and careful of our employees, consumers and customers; we always put our heart in what we do to make products that can become part of everyone’s daily life, because they are made by real people; we believe in solidarity, which translates into openness to dialogue and sharing.
PROMOTION OF VALUES OF THE SOCIETY
Our corporate action is always carried out respecting legality and fundamental human rights; based on clear, transparent rules and in harmony with the external environment and community objectives.
REPORTS WITH CUSTOMERS
Our commitment is to efficiently, courteously and promptly provide, within the limits of contractual provisions, high quality products and services that meet a customer’s reasonable expectations and needs; and to provide product information so that the customer can make informed decisions.
DEVELOPMENT OF HUMAN RESOURCES
We value people solely based on merit, recognition and enhancement of abilities. We offer all individuals equal employment opportunities with no distinction based on ethnicity, religion, opinion, nationality, gender, physical condition, age or social status.
PRODUCT WARRANTY AND CONSUMER HEALTH
We aim to offer customers a range of products that are guaranteed in quality and safety terms. We feel that voluntary certification of processes and finished products is essential.
THE LATTERIA MONTELLO GOVERNANCE
The principles underpinning our business include integrity, ethics and transparency concepts that have always been the fundamental ingredient for the company’s success. Fairness and respect for the employees and families that are part of Latteria Montello, accompanied by profound responsibility towards customers, the territory and those affected by our activities, represent the foundations on which our company management has never ceased to grow and evolve. Consistent with this historical identity, we have given ourselves a Code of Ethics that defines the behaviour to be adopted in the company and towards customers. This Code of Ethics , an integral part of the Organisation, Management and Control Model, governed by Legislative Decree 231/01 applies not only to company employees and managers, but also
1 Latteria Montello | Code of Ethics - 15/12/2023
to those who work in the interest and to the benefit of the company, including consultants, intermediaries and business partners. In the course of 2023, the Code of Ethics1 and the Organisation, Management and Control Model2 were both adapted and approved by the Board of Directors in order to incorporate the relevant updates. The thematic areas covered and regulated by the Code of Ethics include human rights, the development of people in the company, child labour, business conduct, health, safety and the environment, conflicts of interest and transparency in carrying out our business activities. The document also provides for a whistleblowing mechanism that, through a dedicated online platform, enables anonymous reporting of code breaches to the Supervisory Board directly.
2 Latteria Montello | Organisation, Management and Control Model - 15/12/2023 https://issuu.com/nonnonanni/docs/modello_organizzativo_parte_generale_15_dicembre_2
No reports have been received for the 2022-2023 two-year period. Should any complaints reveal significant critical issues, the Supervisory Board is responsible for promptly reporting them to the Board of Directors.
We have extended the policy to provide our employees with more flexible working conditions. Those roles that can do so can work remotely for two days a month, by signing an individual agreement that regulates prevention and safety conditions. This is part of our corporate policies, also consisting in our Food Safety Policy, providing the necessary guidance to ensure compliance with HACCP requirements; our Quality and Environment Policy enablingus to pursue full compliance with quality, environmental and occupational safety regulations, as well as voluntary standards and product certifications; and, last of all, our Sustainability Plan including 54 actions linked to the 4 pillars of the sustainability journey we embarked on in 2022, in order to strategically integrate the sustainability areas most relevant to our industry and business.
GOVERNANCE STRUCTURE
The family-run company certainly represents an added value for management of our business, helping to characterise it based on a mechanism of trust in our employees. The presence of ownership in Latteria Montello operations has always allowed us to promote and carry forward the initial values on which the company was founded by Giovanni in 1947. The generational changes over the last 70 years have, on the one hand, ensured respect for tradition, and a look towards the future on the other.
The Board of Directors has three executive members belonging to the Lazzarin family, the family that has always owned the company, who simultaneously hold three managerial positions in it. The Board of Directors, remaining in office for three years, is appointed by the Shareholders’ Meeting and consists of two men and one woman as of 31 December 2023. The Shareholders’ Meeting ensures a threeyear rotation of Board of Director positions. As of November 2023, the Shareholders’ Meeting appointed a director not belonging to the Lazzarin family, holding the independence characteristics. As regards the composition of this body during the 2022-2023 two-year period, please refer to the table below.
Given that Latteria Montello is a family business, there is a Family Council, supported by an external guarantor. As of May 2022, the position of Chairman of the Board of Directors is held by Silvia Lazzarin and, for the 2022-2024 three-year period, the operational delegations have been based on the following division:
Silvia Lazzarin, delegated to Marketing and Communication; Alessandro Lazzarin, delegated to Operations and Environment; Giovanni Lazzarin, delegated to Sales. The three Board members of Latteria Montello S.p.A. belonging to the Lazzarin Family sit on the same body of the subsidiaries Caseificio Tonon S.r.l. and Nonna Rina S.r.l.
As to remuneration, it is up to the Shareholders’ Meeting to decide on the Board remuneration; this, in turn, approves the remuneration of the other executives and the salary grids at clerical and blue-collar level, updated annually based on benchmark analyses in the dairy sector.
In line with the sustainable development principles intrinsic to Latteria Montello corporate management, the Board has analysed the methods and opportunities for sustainability reporting in order to ensure full compliance with them in its strategic and operational choices. In recent years, the three members of the Board of Directors, together with company managers and an employee sample, have taken part in a training course on sustainability and related strategic planning, delivered by the Ca’ Foscari Challenge School, the Ca’ Foscari University of Venice business school.
THE COMPANY’S ECONOMIC PERFORMANCE
Through the Report on Operations and the Financial Statements, we provide our financial performance and account for the creation and distribution of wealth towards our main stakeholders; showing, in monetary terms, the relationship between Latteria Montello and the socio-economic system in which we are embedded, measuring the economic impact and our ability to generate and distribute wealth among the main stakeholder categories such as staff, shareholders, lenders, the community and the public administration.
In 2023, the economic value generated directly by the company was € 127,116,044 up from 2022.
By contrast, the economic value distributed directly for 2023 amounted to € 111,089,107 a decrease of 4% compared to 2022.
Of these, the economic value operating cost share amounted to € 85,202,436 , which mainly includes costs incurred to purchase raw materials, consumables, goods, costs for services, costs for the use of leased assets, and other operating expenses.
The share of economic value distributed to our staff and employees amounts to approximately 13% of the total economic value distributed directly for 2023.
In terms of value distributed to the public administration, the total
amounted to € 4,052,261, in 2023, whereas there was a decrease in value distributed to capital suppliers, with € 45,402 allocated compared to € 131,571 in 2022. Concerning the item of value distributed to the community, € 95,765 was allocated to donations and sponsorships to local and national entities in 2023, representing a further contribution to the context and social fabric in which our facility is located.
Value distributed to employees in 2023 127.1 millions of € In 2023, the economic
For 2023, the economic value retained in the company amounted to € 16,026,938.
STAKEHOLDER MAPPING AND MEMBERSHIP OF ASSOCIATIONS
Maintaining a constant, constructive dialogue is crucial for achieving our goals and mission.
In our day-to-day activities, we attach crucial importance to the relationship with stakeholders: maintaining a constant, constructive dialogue is crucial for achieving our goals and mission. For this reason, we have mapped our stakeholders, where “stakeholder” means any person who has an interest in Latteria Montello activities and can influence or be influenced by our strategic choices. We have identified those who are most involved or influenced and whose interests are considered in the various decisionmaking stages. Our main stakeholders are presented below.
Media: public opinion, social media, newspapers
Public bodies and legislators: Public administration, certifying and regulatory bodies, governments
Suppliers: service providers and those conferring
Customers: large-scale retail players, retail and direct customers
Employees: employees and collaborators, trade associations, trade unions
Consumers: consumers and associations representing consumers
Lenders: investors, banks and credit institutions, financial partners
Local communities: local communities, civil society, schools and universities, NGOs, Environment
Competitors: agri-food consortia, sector competitors
To cultivate this kind of relationship, we specifically created the Nonno Nanni Community, a sharing space with our most loyal consumers.
For all our stakeholders, we are aware of the importance of maintaining an open dialogue and channel of communication on the company performance and our activities; we believe we can only fulfil this through dialogue and collaboration, eager to receive suggestions from them and be able to develop projects with shared values.
To cultivate this kind of relationship, we specifically created the Nonno Nanni Community, a sharing space with our most loyal consumers. Accessible via our webpage3, the community offers special activities with focus on various topics, mainly family, environmental sustainability and good food. For each successfully completed activity, users registered can accumulate digital tokens with which to claim prizes, such as Nonno Nanni gadgets.
Starting in 2008, we began to support the Nonno Nanni brand in mass media, with communication on TV, press and radio; this contributed to strong growth in brand awareness and to making Nonno Nanni one of the best-loved fresh cheeses on Italian tables.
Over the past few years, we have increasingly strengthened our digital presence by both renewing and enriching our website with content, and by reinforcing communication on our social media channels. This has enabled us to become even more accessible through daily engagement and dialogue, and even to involve the youngest consumer groups.
As historical players in the Italian dairy sector, we are members of Assolatte, the trade association representing Italian companies operating in the sector, and Confindustria Veneto Est , which includes more than 5,000 companies in the industrial sector located in the provinces of Venice, Padua, Rovigo and Treviso.
3 Nonno Nanni Table - www.latavoladinonnonanni.it
MATERIALITY ANALYSIS AND MATERIAL TOPICS
The materiality analysis plays a key role in guiding our company in the choice of information to present in the Sustainability Report. The aim is to achieve an accurate, complete picture of the relevance of impacts generated by Latteria Montello activities, offering a clear, transparent vision. According to the GRI Standards, the identification of material issues is based on analysis of the actual and potential impacts, positive or negative, that an organisation may have on the economy, the environment and the wellbeing of people, including respect for human rights and contribution to sustainable development. Sustainability impacts are categorised in the following definitions:
• Actual or potential: an impact is considered actual when its effects have occurred or are currently occurring. Conversely, it is defined potential when its effects could occur, but have not yet occurred at the time of analysis;
• Positive or negative : impacts are considered positive when they contribute to the sustainable progress of people, communities and the environment. Conversely, they become negative when they cause harm or disadvantage.
THE VALUE CHAIN
As established by the GRI Standard, the materiality analysis considered the entire value chain of Latteria Montello, in order to identify all impacts generated by our company: not only including the company’s operational activities, but also all activities upstream and downstream. The Group’s value chain is as follows:
1. The upstream phase, including the procurement of raw materials and inbound logistics;
2. The core phase referring to the operational activities of the company, i.e. development and production of dairy products;
3. The downstream phase, including outbound logistics, sales, consumption and end-of-life of products.
THE IMPACT IDENTIFICATION PROCESS
To conduct the materiality analysis, we adopted a four-step process:
1. Understanding the context in which the company operates: a documentary analysis considered a variety of sources, both internal and external to the company, such as sector documents, current regulations and a survey of the main articles concerning Latteria Montello;
2. Identification of actual and potential impacts : actual impacts, which include impacts that have occurred or are currently occurring, and potential impacts, which include impacts that have not yet occurred but may occur in the future, were mapped;
3. Evaluating the significance of impacts: the significance level of each impact was assessed through an evaluation process developed based on the criteria set out in the Standard, details of which are given below;
4. Prioritisation of the most significant impacts for reporting purposes: in the last step, we established the material issues for reporting through a prioritisation process. Methodologically, the main negative and positive impacts were prioritised and evaluated based on their severity and likelihood of occurrence.
The significance of an actual impact is based on its severity, while the significance of a potential impact is based on its severity and the likelihood of occurrence. To assess the severity of an impact, three elements are considered:
1. Severity scale how severe the impact is and the external context in which the impact occurs (including the geographical context);
2. Scope : how widespread the impact is and how far it can be measured in terms of its impact on the value chain;
3. Irremediable character : indicates the degree of difficulty had in repairing the damage generated by the negative impact. Regarding assessment of potential impacts, estimation of the likelihood of occurrence considered all policies, procedures and actions that the company has taken to prevent and mitigate the impact identified. Each impact identified was classified by its severity and likelihood, based on the following 3 classes: very significant , significant and insignificant . Impacts with very significant and relevant significance were considered as material issues.
The following table shows the results of the material issue identification process: for each impact, the relevant GRI Disclosures were provided and specific reporting criteria were established, detailed in the Methodological Note.
Energy consumption and contribution to climate change
The dairy-cheese industry is characterised by significant energy consumption resulting in greenhouse gas emissions: both in the early stages of procurement and in transport and processing. Activities such as pasteurising milk, requiring high temperatures, or storing products in cold storage are just some of the most energy-intensive activities. This is why Latteria Montello is committed to reducing these impacts through investments to reduce consumption and emissions.
DOWNSTREAM GRI 302 Energy GRI 305 Emissions
UPSTREAM CORE
Discrimination in the workplace
Exploitation of water resources
In activities carried out by Latteria Montello, in both procurement and processing, we must consider the extensive use of water. In particular, considerable water is consumed during product processing, washing and sanitising activities. So we must pay particular attention to the water discharge and withdrawal phases in order to avoid situations of non-compliance or problems with management of the resource.
Air pollution
Generation and treatment of waste and product
During the company’s production processes, particularly in drying treatment for cheese production, pollutant emissions such as nitrogen oxides (NOx) and sulphur oxides (SOx) are released into the atmosphere. These emissions have a negative impact on air quality, posing a danger to human health and ecosystems.
Latteria Montello production generates various types of waste such as processing waste, packaging and consumables, often plastic. If the company does not adopt effective recycling practices or does not manage waste properly, it may contribute to increased landfill waste and pollution. This is why Latteria Montello has, over the years, decided to invest in the use of specific biodegradable and compostable packaging.
Dangers associated with product packaging practices
The food industry often uses plastic packaging to preserve food properties. However, inefficient packaging practices or excessive use of materials can increase the environmental impact along the entire production chain. To meet this challenge, Latteria Montello is investing in research and innovation to reduce the impact of packaging while ensuring freshness and food safety.
UPSTREAM CORE GRI 303 Water and waste water
UPSTREAM CORE DOWNSTREAM GRI 305 Emissions
Reduced supply chain traceability
Protection of human and labour rights
Discrimination on the basis of features such as gender, age, ethnicity, religion or sexual orientation can create an unfair, non-inclusive working environment. This can cause an increase in staff turnover and limit the diversity of ideas and perspectives. This scenario could hamper the company’s development potential and put it at risk of legal action, causing a negative impact on its reputation and consumer opinion.
The dairy sector plays a crucial role in food safety. However, the lack of proper product quality control and management can lead to contamination problems and put consumer health at risk. Furthermore, traceability is of paramount importance to guarantee the authenticity and Italian origin of dairy products.
The activities of Latteria Montello, its suppliers and retailers may have inadequate working conditions and lead to incidents of human rights violations. So it is important for the company to adopt dedicated policies and effective control methods.
Latteria Montello employees are represented by trade unions and enjoy protection provided by collective agreements. However, lack of attention to these issues could lead to disputes with workers or trade associations.
UPSTREAM CORE DOWNSTREAM GRI 306 Waste
Lack of health and safety protection for workers
Latteria Montello operations, including those carried out by suppliers, are articulated and complex and can expose workers to various types of risks and injuries. Without careful management, these can lead to accidents, occupational diseases and dismissal for health reasons, thus creating a negative working climate and damage to corporate reputation.
Lack of skill development
Considering the articulated, complex activities associated with Latteria Montello business, it is important to have professional figures that are specialised and up-to-date on the latest regulations. Failure to develop employee skills could have negative consequences not only on food safety but also on the health and safety of workers. In addition, lack of training and professional development could reduce retention and the ability to attract new talent.
UPSTREAM CORE DOWNSTREAM GRI 301 Materials
Partial or nontransparent communication
Open, accurate, timely communication fosters information sharing, collaboration and informed decision-making, creating a climate of trust and improving business efficiency. It is just as important at the other production chain levels of the production chain; it ensures the traceability and quality of raw materials, promoting a relationship of trust with suppliers and improving the overall quality of products. It also creates trust and facilitates an informed, transparent choice on the part of consumers and business partners, contributing to product promotion and better market positioning.
CORE
GRI 404-1 Average number of training hours per employee per year
The material issues presented were validated by the Latteria Montello Board of Directors which also approved the final version of this 2023 Sustainability Report.
LATTERIA MONTELLO COMMITMENT TO SUSTAINABLE DEVELOPMENT
Pillars of Sustainability Areas of Commitment
In addition to the reporting linked to the sustainability performance commitment, we have decided to continue by adopting an integrated strategy, a Sustainability Plan , ensuring business growth and social and environmental sustainability, a fundamental step in the path undertaken by our company.
HOW THE PLAN WAS DEFINED
Based on the process leading to definition of our list of impacts, and thus the most relevant sustainability issues for Latteria Montello and our stakeholders, we have identified 4 pillars encapsulating 12 specific areas on which we have decided to focus our commitment for the future:
Quality and transparency; Our commitment for the environment ; Responsibility along the supply chain and our communities ; Employee growth and well-being .
In order to identify the 54 initiatives that fall under the pillars, we carried out an assessment of the sustainability pressures on our business along with the priorities and opportunities associated with them, and identified our current level of control over these issues. Timelines, priorities, responsibilities and performance indicators needed to monitor them over time were then defined.
Involvement, from an early stage, of our main corporate functions ensured that real involvement of the internal stakeholders was guaranteed, in terms of both planning and responsibility for implementation of initiatives.
Subsequently, the Plan was submitted and approved by the Latteria Montello Board of Directors which analysed its contents and consistency with the corporate strategy. We have set ourselves
Ensuring business growth and social and environmental sustainability, a fundamental step in the path undertaken by our company.
Our Plan intends to contribute to achieving the Sustainable Development Goals, or SDGs, of the UN 2030 Agenda.
the goal of updating our Plan annually; in order to account for the status of implementation and set new goals with a view to constant improvement, knowing that sustainability is not an end point, but an ongoing journey. Furthermore, our Plan intends to contribute to achieving the Sustainable Development Goals or SDGs (Sustainable Development Goals), of the UN 2030 Agenda . This very framework, devised by the United Nations, was used as a strategic driver for development of the Sustainability Plan in order to provide a clear, transparent and easily interpreted communication framework for our strategy. Of the 17 SDGs identified by the United Nations, either directly or through the organisations with which it collaborates, Latteria Montello, contributes to the achievement of 7 goals , specifically:
SDG 3 – Health and well-being
SDG 5 – Gender Equality
SDG 7 – Clean, affordable energy
SDG 8 – Decent work and economic growth
SDG 12 – Responsible consumption and production
SDG 13 – Combating climate change
SGD 17 – Partnership for goals
Goal 3 Ensure health and well-being for everyone and for all ages.
Goal 5 Achieve gender equality and empower all women and girls.
Goal 7: Ensure access to affordable, reliable, sustainable and modern energy systems for everyone.
Goal 8: Promote lasting, inclusive, sustainable economic growth, full, productive employment and decent work for everyone.
Goal 12: Ensure sustainable production and consumption models.
Goal 13: Promote actions, at all levels, to combat climate change.
Goal 17: Strengthen the means of implementation and renew the global partnership for sustainable growth.
SOME OF OUR INITIATIVES
Quality and transparency
• Draft a structured marketing and communication policy: we have always adopted clear, transparent communication, which is why we decided to commit to drawing up guidelines and objectives to regulate social tools and, more generally, related to our communications.
Our commitment to the environment
• Reduction targets on packaging materials: in line with our commitment, we have decided to set reduction targets for our packaging, so that we can coordinate our path towards a growing impact reduction.
Responsibility along the supply chain and our communities
• Develop a collection system for sustainability information with suppliers: we want to be transparent along our entire value chain. That is why we will introduce a system that enables the collection and traceability of sustainability information on raw material suppliers, such as sustainability practices adopted by the supplier and any certifications it holds.
Responsibility along the supply chain and our communities
• Climate survey: we believe in a serene working environment that enhances and recognises the value of each person. That is why we conducted a company climate survey for 2023.
In addition to the Plan pillars, we are committed to creation of sustainability governance in the company, to guide and monitor performance related to implementation of the Plan initiatives.
PILLARS & SDGs
1. Quality and transparency
SPECIFIC AREAS OF ENGAGEMENT
• Healthy, accessible food
Ensure high quality standards in offering recipes that are increasingly careful about new dietary needs.
• Customer security satisfaction
Strive daily to ensure the continuous improvement of consumer satisfaction.
• Complete, transparent communication
Promote transparent communication providing clear, responsible information.
2. Our commitment to the environment
3. Responsibility along the supply chain and our communities
• Circular economy and sustainable packaging
Develop a system that fosters the transition to a circular economy model
• Logistics and mobility
Reduce supply chain impacts and promote sustainable mobility.
• Energy efficiency
Promote a process that can improve our energy performance and reduce the consumption and impact of our products.
4. Employee growth and well-being
• Responsible sourcing
Pay close attention to material procurement practices, increasingly include social and environmental aspects in evaluation criteria.
• Attention for the territory
Actively protect and promote the community and the environment in which the company operates.
• Worker health and safety
Ensure a healthy, safe working environment for our employees on a daily basis.
• Worker welfare
Build a stimulating environment centred round the mental and physical health of workers.
• Diversity and equal opportunities
Create working conditions that promote diversity and the inclusion of everyone.
• Training and education
Offer growth paths to our employees to enable them to express their potential to the full.
Quality and transparency.
2 chapter
OUR COMMITMENT ALONG THE SUPPLY CHAIN
92% of Italian suppliers
Latteria Montello has always committed to creating stable, constructive relationships with its suppliers, oriented towards sharing goals and paths of environmental and social awareness. To carry out our activities, the company can count on a solid structure of suppliers with whom it has established a lasting relationship, cultivated and maintained, in some cases, since the beginning of our story
In order to maintain the high product quality, we select our suppliers carefully, considering quality and food safety requirements as well as, of course, compliance with contractual and supply clauses.
As stated in our Code of Ethics , the basis for supplier selection and the purchase of goods are assessments with objective, transparent parameters on professionalism, competitiveness, quality, fairness, reputation, skills and price, carried out by the competent corporate functions; and we carry out periodic monitoring of performance and maintenance of qualification requirements.
SOUNDNESS
REQUIRED OF OUR SUPPLIERS AS A BASE FOR CREATION OF VALUE
Presence and implementation of adeguate quality systems
Documented availability of means, also financial
Organisational structures, abilities and project resources, know-how
Moreover, purchasing processes are based on pre-contractual and contractual conduct of mutual loyalty, transparency and cooperation and on the pursuit of maximum value for our customers, and the granting of equal opportunities for each supplier.
If the supplier, during its activities, behaves in a way that is not in line with the principles of the Code of Ethics, we take appropriate measures, which may even preclude any future opportunities for collaboration.
To check the solidity of the supply chain in order to establish lasting partnerships and maintain high product quality standards, we require that our suppliers meet the following requirements:
• Guarantees and evidence of adoption of established practices on food safety, quality and production (good manufacturing practice);
• Suitably documented availability of resources , including financial ones;
• Organisational structures, design capabilities and resources, know-how consistent with the good or service required.
Demonstration of our wish to maintain the value and potential of our territory is our commitment to favour local supply chains: in fact, by 2023 92% of our supply chain is by Italian suppliers, of which 33% by local suppliers operating in the Veneto Region. In the 2022-2023 two-year reporting period, the supply chain make up did not change much, relying on a solid structure of historical suppliers committed to efficient, innovative, sustainable practices.
Proportion of expenditure to local suppliers (2023)
32.9%
Veneto Region
PRODUCT AND CONSUMER HEALTH GUARANTEE
We have always overseen the entire production cycle: from raw materials to product distribution, ensuring a punctual, widespread, efficient service.
With the quality of yesteryear, the love of today and a contemporary touch, our production represents the perfect combination of the art of cheese-making and advanced technology, fwith skill and respect for authenticity and flavour.
In order to ensure the highest quality standards for consumers, we commit to being operational on several fronts: optimisation and control of existing production processes, continuous improvement with a view to safety, quality and traceability of products offered on the market, research and development on products and recipes to answer with the best solutions to the ever-changing needs of consumers.
We have always overseen the entire production cycle: from raw materials to product distribution, ensuring a punctual, widespread, efficient service. And it is thanks to this entire process that we can guarantee consumers fresh products preserved in all their goodness.
THE COMPANY’S HISTORICAL PRODUCTS
Latteria Montello brings quality and goodness to the table with fresh, authentic-tasting products that are the result of a passion for the cheese-making art from days gone by. We are constantly researching and developing new products to meet people’s different dietary needs: a clear example are the Light and LactoseFree products in the Nonno Nanni assortment
Nonno Nanni Stracchino is a fresh cheese with no preservatives, still made following the teachings of traditional artisan cheese-making. Its distinctiveness comes from the careful selection of good milk and live milk enzymes (over 2 billion per gram), matured under optimal conditions.
Nonno Nanni Squaquerello is one of the most appreciated cheeses of the Nonno Nanni family, known for its sweet, enveloping taste and extreme softness and creaminess. It is a fresh, preservative-free cheese with over 2 billion live lactic acid bacteria per gram.
Nonno Nanni Robiola is a fresh cheese with a soft, creamy texture and a pleasant, intense flavour. Easy to spread, it is an ideal cheese to start or finish meals in a tasty way.
The result is a quality that respects the tradition of yesteryear and guarantees products that are always good and have a unique taste.
BETWEEN DAIRY ART AND INNOVATION: THE STAGES OF OUR PRODUCTION PROCESS
The uniqueness of our cheeses is the result of a careful, painstaking process at every stage : the company scrupulously selects its raw materials and has established a direct dialogue with local farmers over the years. After rigorous analysis of the milk, it follows the pasteurisation process and the use of carefully selected milk enzymes, reaching over 2 billion per gram in Stracchino. Pasteurisation, a critical control point, is periodically validated to guarantee that plants work properly. Confirming the thorough controls carried out on our products, no incidents of non-conformity relating to health and safety impacts and services were detected in the 2022-2023 two-year period. Production continues with the product processing, carried out in compliance with the old-fashioned method, entrusted to the skills of our cheese makers. They plan and develop production, adapting it to season and respecting natural times, using technologically advanced equipment. The result is a quality that respects the tradition of yesteryear and guarantees products that are always good and have a unique taste. The finished product is then subjected to numerous quality and safety controls throughout the year to ensure fresh, unmistakably good, genuine cheeses.
60,000 annual quality and safety controls on our products More than
and packaging 2 billion milk enzymes present in each gram of
Filtration of milk
Pasteurisation of milk Production Boxing and
Portioning
Stracchino
Receipt of milk
Check for foreign bodies
We are well aware of the environmental aspects of our production process and have implemented a UNI EN ISO 14001 certified environmental system.
PRODUCT, FACILITY AND PROCESS CERTIFICATIONS
We operate in full compliance with general hygiene and product safety regulations, guaranteeing product quality, safety and legality. Through the company policy adopted, our aim is to manufacture our products in compliance with applicable health, safety and environmental regulations.
For us, building a sustainable food production system means being able to guarantee the highest principles of health and safety for our employees; working every day to ensure that our commitment is carried out in full compliance with regulations. We are well aware of the environmental aspects of our production process and have implemented a UNI EN ISO 14001 certified environmental system. UNI EN ISO 14001 certification is a voluntary international standard applicable to any type of public or private organisation. This standard specifies the requirements that a company system must have in order to manage mandatory environmental compliance, environmental protection and improvement in the consumption and use of energy and resources.
At company level, in addition to using a tried, tested Quality Management System that includes all the procedures regulating
both Operational and Administrative company activities, we apply an HACCP self-control plan that consists in the following phases:
• Description and continuous updating of the process and its flowchart
• Assessing the risk associated with raw materials and finished products through identification of critical process or product points, in order to find actions or implement monitoring and records to ensure food safety;
• Periodic re-evaluation of the system.
To achieve the Company Food Safety Policy targets, we have prepared the Self Control Manual, as the foundational document of the Food Safety Management System. It describes the processes, organisational correlations and responsibilities of staff involved. This document describes the operational details in compliance with current regulations, contains information about the facility, the production process and products, and contains the risk analysis and definition of Critical Control Points.
To safeguard product quality and consumer safety, strict controls on raw materials and finished products are implemented, with responsibilities assigned to line staff and the Quality Assurance and Control function.
As evidence of our ongoing commitment, we have adhered to the following voluntary certifications over the years:
In the area of occupational health and safety, we have adopted the UNI ISO 45001 standard.
We used the Carbon Footprint certification to validate the calculations made on the carbon footprint, i.e. the amount of CO2 generated during the core phase of the production process, for the Stracchini family under the “Nonno Nanni” brand.
The International Food Standard is an international conformity assessment standard for products and processes related to food safety and quality.
Product certification guarantees constant control of chemical, physical and bacteriological parameters during all production process stages of soft, fresh, spun pasta cheeses processed with cream and ricotta.
The BRC standard aims to ensure the safety, integrity, legality and quality of products and related operational controls in the food and food ingredient production, processing and packaging industry.
Latteria Montello has a UNI EN ISO 14001 certified environmental system.
FULL, TRANSPARENT COMMUNICATION
The label is the tool through which we transparently communicate our commitment to accompany the consumer in a complete, informed choice.
Alongside the guarantee of a high quality product, we promote growth of responsible communication, that provides our customers with the right information on the label; not only to be in compliance with regulations, but also to promote conscious consumption choices and provide clear, transparent nutritional information
Consumer health is one of our priorities and we are committed to communicating all relevant product information through clear, transparent, complete labelling.
In compliance with current regulations, the packaging of Nonno Nanni brand products contains detailed information on traceability, origin of raw materials, nutritional values and ingredients, with special reference to allergens. The label is the tool through which we transparently communicate our commitment to accompany the consumer in a complete, informed choice. To confirm this, no cases of non-compliance with regulations and/or selfregulatory codes were detected in the 2022-2023 two-year period concerning the company’s product communications
WE COMMUNICATE WHAT WE ARE
Handling a consumer who is increasingly sensitive and careful of issues linked to environmental and social sustainability, we design our product claims carefully to convey our commitment to the environment to consumers. As proof of this, we have placed logos on Nonno Nanni brand products to highlight our best practices applied to each product in terms of packaging materials and actions offsetting CO2 emissions. We did not just create one logo, but several logos respecting the specificities of each product, to confirm our timely commitment to a sensitive issue we hold dear.
Some examples of logos applied to Nonno Nanni products:
We have placed logos on Nonno Nanni brand products.
Our Commitment to the environment.
3.1
OUR
RESPONSIBILITY
100% purchase of electricity for renewable sources
302,442 tCO2 covered by offsetting activities from 2014 to 2023
307,124 kWh by our photovoltaic system in 2023
Sustainability is not just an opportunity; it’s a real mission for Latteria Montello. “Goodness in every gesture” for us means not only bringing tasty, quality products to the table, but also being able to concretely contribute to the wellbeing of people and the preservation of the planet; leaving future generations a better, more sustainable, fairer world. With this in mind, Latteria Montello works towards the continuous improvement of its environmental management system, through research into processes and technologies to reduce its impacts. Our commitment to sustainability is expressed through the conduction of both internal and external audits, to verify compliance with all the rules characterising the company organisation and any points of improvement identified. The definition of targets and planning of activities considers the priorities identified; their approval and dissemination always takes place with the consent and support of the entire management.
3.2 MATERIALS AND PACKAGING
At both institutional level and among consumers, care for the environmental impact and safety of food products is steadily increasing. As a company, we want to present ourselves as innovators and contribute to cutting-edge solutions in line with industry best practices. That is why, with the collaboration of several corporate functions, we have always been committed to analysing and testing the most innovative packaging solutions.
In terms of materials purchased, paper will be the most common packaging in 2023, with 731 tonnes of which about 90% from recycled sources . With regard to the plastic used to package our products, we recorded a 7.2% decrease between 2022 and 2023.
As a company, we want to present ourselves as innovators and contribute to cuttingedge solutions in line with industry best
The table below shows the quantities of packaging material purchased in the years 2022-2023.
Consumers are becoming increasingly more aware of the impact of their purchasing choices. Though our communication channels have multiplied in recent years, packaging will always play a privileged role in customer communication.
By virtue of the typical qualities of our products, first and foremost freshness, packaging has always been a distinguishing feature of our corporate identity; an element on which we have always placed special attention in terms of research and development, favouring top-quality packaging able to keep the properties of our products intact. That is also why we have increased our initiatives and research on the sustainability performance of packaging in recent years; part of a continuous, environmental performance improvement strategy specific to each type of material and product; and careful over packaging that is increasingly oriented towards recyclability. Our packaging is continually improved and studied in consultation between our various company areas, especially involving Operations Management and the Laboratory; as packaging is first and foremost the means of safeguarding product integrity, in terms of both food safety and of freshness and organoleptic quality. That is why creating new packaging with less impact has always been a delicate challenge. In order to better communicate our main packaging system innovations , we have developed a clear labelling system that tells you about our commitment to packaging and can provide information on the type of material used, whether from recycled plastic if it is recyclable, or indicating where reduction in the amount of plastic used to produce packaging and the CO2 emissions offset to produce the product has been achieved.
Our packaging is continually improved and studied.
THE FIRST STRACCHINO RANGE IN RECYCLABLE OUTER PACKAGING
After several years research, we have managed to improve the environmental sustainability of our Stracchino packaging.
During 2023, Nonno Nanni Stracchini 125 g, 200 g, 250 g and Stracchino with live milk enzymes of Nonno Nanni Yoghurt 250 g, have been supplied with innovative packaging including a recyclable flow pack outer wrapping able to guarantee the barrier effect, thus keeping the organoleptic and durability properties of the product intact.
This made it possible to complete a journey that has lasted several years and has led to the current pack with recyclable outer packaging and a tray made predominantly of recycled PET (rPET), forming an inner layer, combined with two outer micro-layers of virgin PET.
Compared to the original packaging with non-recyclable flowpack and virgin plastic tray, the new Stracchino packaging will reach the following improvement in terms of environmental impact, expressed as annual average values:
Benefits of the new recyclable outer pack
Benefits of the inner tub with rPET
ENERGY CONSUMPTION AND EMISSIONS
Well aware that market leadership implies responsibility, we decided to commit to innovating our facilities through efficient solutions, improving management of energy needs. The energy consumed by our facility in 2023 is 176,344 GJ. This energy consumed can be divided into two macro-families: the first, linked to theuse of fuels; the second, determined by the need for electricity purchased externally. In the first case, mainly using natural gas. This analysis of the energy carriers used in our facility shows a slight increase in natural gas consumption of about 3.6%. In addition, we have a biogas plant providing 41,527 GJ of energy in 2023.
Energy utilised from our biogas plant 41.527 GJ
Energy Consumption by 2023 Source
Measurement and monitoring of energy consumption is a key element for an increasingly aware use of energy. An Energy Efficiency Plan is defined and developed periodically through an integrated approach along three main stages:
• Energy assessment , examining the energy system of our facilities, including all their significant aspects, to explore the potential for reducing consumption and repairing any faults;
• Monitoring and auditing stage, analysing the impact of efficiency measures on performance indicators;
• Efficiency enhancement stage, for continuous research and evaluation of the best technologies available on the market.
The European dairy sector is one of the world’s leading economic sectors, in terms of both imports and exports.
Below, we have decided to highlight some of the major energy efficiency projects carried out over the years:
• On the roof of our Giavera factory, a photovoltaic plant present and active, and an expansion planned for 2024 that will increase the plant’s capacity from 50 to 235 kW;
• In our facility there is a biogas production plant using production residues from the processes transforming whey into cottage cheese, promoting an economic model based on circular economy;
• There is a natural gas-fuelled cogeneration plant in our factory, providing improved energy efficiency. The co-generator also means recovery of part of the thermal energy of its process by using it in production processes and thermal consumer users;
• Focus on the use of clean energy sources is evident in the fact that the electricity purchased from the grid since 2001 comes 100% from renewable sources , as declared on our products.
The operational, environmental and economic impacts of energy are key issues for our business.
The European dairy sector is one of the world’s leading economic sectors, in terms of both imports and exports. However, when analysing the environmental impact of the supply chain, we should not underestimate the fact that the production sector generates a significant amount of emissions into the atmosphere. That is why, in line with our Sustainability Plan, we have decided to commit toa decarbonisation strategy by expanding our procurement from renewable energy sources and taking energy efficiency actions in production processes, to reduce energy requirements.
In line with the GHG Protocol, we have committed to reporting:
• Direct emissions (Scope 1): these are direct GHG emissions from assets owned by Latteria Montello or that we control operationally.
• Indirect emissions from electricity consumption (Scope 2) calculated through the location-based approach4 . The table shows Latteria Montello emissions, expressed in tCO for 2022 and 2023.
3.4
WATER RESOURCE MANAGEMENT IN THE PRODUCTION PROCESS
7.965
A total of 7,965 tCO2eq (Scope 1 + Scope 2 Location-based) were emitted in 2023, of which 86% was due to direct emissions of 6,834 tCO2eq (Scope 1). Indirect emissions (Scope 2) thus account for 14% of emissions. CO2 emissions decreased by a total of 4% between 2022 and 2023.
In terms of other significant emissions released into the atmosphere, for Latteria Montello these mainly consist of nitrogen oxide (NOx) and sulphur oxides (SOx) lmainly from boilers, and our cogeneration plant5.
We work to constantly monitor the use of water on our production lines, in the use of technical services, and pay special attention to washing and sanitising environments. Although dairy practice involves the natural use of water in production processes, we are at the forefront of reducing water waste to a minimum through application of state-of-the-art technologies such as CIP washing systems that ensure optimal use of the recirculation of cleaning liquids and rinsing solutions. This system type enables us to use water to the extent strictly needed, avoiding waste.
In 2023, 354,935 cubic metres of water were withdrawn. All sampling comes from fresh water, i.e. with a dissolved solid total of less than 1 gram/litre. The coexistence between an industrial plant and its surrounding areas is often a source of conflict, so good management of environmental factors becomes essential. Our company obtains its supplies from areas subject to medium to high water stress, and extraction is mainly through groundwater wells. The water is returned after process use, after checking that parameters comply with legal standards and after possible treatment by purification.
CO2eq EMISSION COMPENSATION
We have decided to take concrete action to reduce our environmental impact by a offsetting part of the emissions produced since 2014 , committing to offset a total of 302,442 tonnes of CO2eq, equivalent to the CO2eq emissions of a car travelling 1.2 billion kilometres.
In 2023, we offset CO2 emissions from all Nonno Nanni stracchino produced in the Giavera del Montello facility, for the core stage of the product life cycle alone.
3.5 WASTE MANAGEMENT
Management of waste production and proper disposal is carried out throughout the entire processing cycle and is done applying current regulations and the lines dictated by the Environmental Management System. In 2023, the total waste produced by the facility was 2,769 tonnes, up from 2022 mainly due to the increased use of the biogas plant.
As the table shows, the waste produced is mostly digestate from the biogas plant . Valorisation is a truly current challenge for organisations operating in the sector. With the circular economy in mind, the company uses part of the sludge to be spread in agriculture.
The importance of our employees.
PEOPLE AT THE CENTRE
90% permanent contracts in 2023
The Latteria Montello story is not only one of tradition, innovation and success, but also of people. People who strive daily to ensure the highest quality of the products that reach the tables of our consumers. The wealth of knowledge and skills handed down by our staff characterises the uniqueness and advantage enjoyed by our company. It is thanks to the work and passion of our people over the years that Latteria Montello is now one of the leaders in the Italian dairy market.
49% recruitment under 30 in 2023
We recognise the centrality of our people, not just professionally, but also and above all humanely. That is why we work to attract and contribute to the growth of the best talents; they stand out for their commitment and alignment with company values. As at 31.12.2023, our workforce had 320 employees located in Italy, of whom 61 % men and 39 % women.
Creating a strong sense of belonging is reflected in the stability of the working relationship we establish with our employees.
By 2023, 90% are employed on open-ended contracts, whereas fixed-term contracts account for 10 per cent. Stability is something we hold dear and, by 2023, the percentage of full-time employees will be 93% of the workforce.
2,750 training hours in 2023
By 2023, 100% of our employees are covered by the National Collective Labour Agreement (CCNL) - Food Industry sector.
employees 2022 vs 2023
As seen in the graph below on employees by employment category as at 31.12.2023 blue-collar workers were the most represented category, 68% of the company population. Office workers were the second most represented category, at 24%, followed by managers, at 7%. In quantities, all categories increased in numbers due to the increase in employees from 2022 (307) to 2023 (320).
Employees by employment category 2023
We are convinced that diversity is a source of enrichment; that is why we want to support gender equality and women’s empowerment.
Our people are a key factor in ensuring competitiveness and company balance. We are convinced that diversity is a source of enrichment; that is why we want to support gender equality and women’s empowerment well aware that we operate in a sector historically characterised by a strong male presence. Gender equality is not only a basic human right, but the necessary condition for a prosperous, sustainable working environment. We have always stood out as a family business. So that is why we are careful to support our employees at every stage of their parental leave, including preparation, the entire leave period and when they return to work.
Of our values, family is certainly one of the most important. For this reason, in order to further support our employees during maternity and paternity and enable them to fully experience the precious moments of this period, we give employees the opportunity to take an additional 6 months of part-time work after maternity and breastfeeding.
As shown. the table below has details of employees who took parental leave and their splits for 2022-2023.
new hires in 2023
Our daily goal is to bring together people from different backgrounds, experiences and socio-cultural heritages to enable our company to meet the challenges of an increasingly competitive and specialised market.
Every new employee, regardless of the type of job he or she will perform, represents added value, so we believe that the personnel selection moment must be handled even more carefully. We have established a personnel search and selection procedure that defines the procedures to be followed and the tools to be used for this purpose. This document aims to align the process with the principles and indications contained in the company Code of Ethics and Organisational Model 231/01. We select and hire staff on the basis of their work skills and aptitude for the position to be held; consistent with the principles and values set out in the Code of Ethics. Candidates to be hired are evaluated based on how well their profiles align with company needs, ensuring equal opportunities for all parties involved. The Human Resources Department is responsible for the application and compliance with this procedure; it decides on the most appropriate recruitment channels: such as CV databases, archives of vocational schools and universities, advertisements on the Internet or in newspapers, or appointments to consultancy firms or labour supply companies.
The graphs show the recruitments and terminations trend by gender and age group in 2023. The recruitment rate stood at 15%, with 47 new hires, of which 31 were men (66%) and 16 women (34%). There are 37 terminations in 2023, of which 21 men (56%) and 16 women (44%). We still maintain a positive contribution in
terms of attracting younger resources: in 2023, 49% of new hires are individuals under 30, followed by 38% in the 30-50 age bracket and then the over-50 bracket, with 13% of hires.
However, in termination terms the under-30 age group accounts for 41% of the total (15 terminations), followed by the 30-50 age group with 38% (14 terminations) and the over-50 age group with 22% (8 terminations).
Recruitment by age group (2023)
Terminations by age group (2023)
Recruitment by gender (2023)
Terminations by gender (2023)
The excellence of Latteria Montello products is the result of the craftsmanship of the people who work in our factory every day.
WELFARE AND BENEFITS
The excellence of Latteria Montello products is the result of the craftsmanship of the people who work in our factory every day.
To thank and show our deep appreciation to all staff, we have always invested in a number of welfare & benefit initiatives over the years. The welfare plan has always had a high participation rate by providing various options available to our employees such as, for example, being able to obtain a sum of money for various benefits, including reimbursement of school expenses for family members, a health fund for reimbursement of medical expenses, reimbursement of welfare expenses for family members in need, and shopping vouchers, food vouchers for supermarket shopping and fuel.
4.2
WORKER HEALTH AND SAFETY
Our health and safety goals are defined for the single functions, considering the significant occupational safety aspects, associated compliance obligations and elements emerging from the risk assessment. These goals are developed in a manner consistent with company policy, monitored periodically and communicated to ensure a continuous improvement process.
In order to align internal practices, procedures and systems, we took a path that led us to achieving UNI ISO 45001 certification.
Latteria Montello is engaged daily in activities to promote a culture of prevention and ensuring the occupational safety of all employees. The dissemination of a safety culture individual responsibility and the creation of risk awareness are central to continuing to provide a safe working environment. That is why we have specialists in our organisation who are responsible for guaranteeing an environment that complies with current regulations, defining guidelines, coordinating monitoring activities and, where necessary, improving safety conditions, supervising activities and interfacing with departmental managers.
Although our activities, including tasks strictly related to the production of cheeses, do not constitute high-risk ones, we consider the protection of people to be an indispensable condition
Latteria Montello is engaged daily in activities to promote a culture of prevention and ensuring the occupational safety of all employees.
throughout all activities, including those of a commercial nature.
As they move throughout Italy, they are exposed to road dangers on a daily basis. That is why, through the health and safety department, we decided to develop a safe driving manual for our sales staff in order to improve perception in risk situations and prevent road hazards, in order to act on accidents en route. The following table shows the number of accidents for the 20222023 two-year period, characterised by a decrease from 10 to 8. The accident rate stands at 14 for 2023. 1 commuting accident is reported for 2023.
Offices and facility are checked periodically, through document analysis and on-site inspections, and an improvement plan is prepared when deemed necessary. If an accident occurs, the people in charge investigate how it happened, trying to retrace the causes that led to the accident to assess adaptation of internal processes. The cooperation of employees who can point out dangerous situations or provide suggestions for improvement is extremely valuable.
As for specific training on health and safety in the company, we adopt a preventive approach, providing workers with all the necessary information and training on health and safety at work.
In particular, during 2023 our employees received a total of 1,929 hours training on Health and Safety topics. The safety service in cooperation with Human Resources promoted and administered courses to make workers aware of musculoskeletal problems, the critical aspects of positions and loading activities performed during work, in order to prevent the onset of musculoskeletal pathologies in the medium and long term. Courses were also held to promote correct lifestyle habits, especially related to proper nutrition.
We adopt a preventive approach, providing workers with all the necessary information and training on health and safety at work.
TRAINING AND GROWTH
Latteria Montello is not just a production reality of excellence. It is a workplace committed to ensuring that people feel valued and placed in the best condition to express their potential. In our company, we consider training and enhancing employee skills as fundamental aspects for achieving our goals and their professional objectives.
Aware of the strategic value of people in our growth and improvement process, we ensure that education, training and activities are targeted at each worker based on their jobs and to achieve, maintain and develop appropriate skills, in line with the demands of the competitive environment in which we operate. During 2023, in-house initiatives and training courses involving our employees were a total of 2,750 training hours.
Specific training courses are also offered based on particular needs.
Paths were introduced to support employees in managing their activities under smart working conditions, and support to improve digital skills. In addition, the annual training plan includes both internal and external courses. Each year, during the budget discussion, each department informs the Human Resources Department so that it adapts to the need and keeps our resources competitive in the market. These plans will then be implemented and improved over the course of the year, even as corporate strategies are adapted and evolve.
Responsibility towards our communities.
LATTERIA MONTELLO INITIATIVES AND SOCIAL COMMITMENT
74,913€ donated in 2023
7 associations supported in 2023 5.1
11.6 tonnes of food surpluses distributed in 2023
The need to guarantee the wellbeing of its employees mixes with the need to actively contribute to the wellbeing of the community. For this reason, in line with its own values and responsibilities system, Latteria Montello has always contributed to the charitable initiatives that benefit society. Thanks to attention and concrete care for communities, the company aims to create opportunities for people; this through a structured process that starts by listening to their needs and develop an effective response, made up of long-term projects in collaboration with local authorities. Forming valuable partnerships and networking with all the most important local public and private players and stakeholders is crucial to the success of any project; whether it be focused on an emergency, medium- and long-term commitments or on the most fragile segments of the population. In 2023, the company confirmed its commitment to the community by supporting 7 associations, organisations and charities through cash and product donations.
OUR COMMITMENT TO SUPPORT THE MOST FRAGILE
Latteria Montello develops an extensive activity programme to involve and support the most fragile communities; to create shared value and a positive impact in the Veneto region and the rest of the country. For many years now, Latteria Montello has shown how close it is to people suffering from cystic fibrosis by financially supporting and collaborating with the Cystic Fibrosis Research Foundation. Latteria Montello approach to charities varies from direct funding of activities to product donations. With regard to sharing its products, Latteria Montello has collaborated with the “Amici della Solidarietà” (Friends of Solidarity) Voluntary Association for a long time; this association helps needy local communities by donating products and redistributing food surpluses.
COMBATING FOOD WASTE
The “Amici della Solidarietà” (Friends of Solidarity) Voluntary Association was founded in 2006 to help disadvantaged people, both young and old, and associations and organisations that support people when destitute or in a state of social fragility. Today, the Association has the threefold purpose of: promoting social solidarity action and intervention; intervening concretely through the organised use of surplus food and products that can still be used, to generate a culture of combating waste through the La Dispensa solidarity emporium; and lastly, organising meetings that promote the value of being together based on solidarity and responsible consumption principles. Latteria Montello supported Amici della Solidarietà in 2023 by donating its surplus food products totalling 11.6 tonnes
RESPONSIBILITY TOWARDS THE TERRITORY AS A FOUNDATION OF OUR ACTIVITY
Our responsibility towards the territory is expressed through initiatives and activities that foster the support and backing of communities, in order to maintain a trust and collaboration relationship, remaining a point of reference. For this reason, Latteria Montello has been supporting sports and territorial organisations for many years now, while collaborating with associations in the Treviso area. During 2023, Latteria Montello continued collaborating with these entities by supporting numerous sporting events through product giveaways and financial contributions.
Nonno Nanni is committed to initiatives for the wellbeing and health of citizens, including through targeted actions to support local healthcare. Over the years, it has taken part in numerous solidarity projects; in 2023 it renewed its commitment by taking part in a fundraiser to purchase a new machine for the Ca’ Foncello hospital in Treviso.
SUPPORT FOR LOCAL HEALTHCARE
WE CARE ABOUT THE WELL-BEING OF THE YOUNGEST...
As part of its commitment to the community, the company has always put the needs of children first; it sees a precious element in these youngsters, indispensable for preserving the sense of tradition and family that has enabled Latteria Montello to get where it is today. In 2023, the company also sponsored the “I Bambini delle Fate” Foundation , committed to promoting and implementing projects for children with disabilities. In addition, for many years now Latteria Montello has been organising school visits to the dairy to introduce the “Nonno” to children and to tell them all about what lies behind the products they usually eat.
Thanks to the valuable contribution of A.L.I.R. Fabio Fabris, a voluntary association based in Treviso that supports people with health problems and does preventive work in the area through different initiatives, a major fundraising event was organised to purchase a new neuro-monitoring system recording electrophysiological signals and stimulating nerve and muscle tissue, for the Anaesthesia and Reanimation Operating Unit of the Ca’ Foncello hospital in Treviso. The solidarity initiative had surprising results thanks to donations of various amounts from public bodies, parishes, individuals and companies, including Nonno Nanni. The donation from the company enabled the hospital to purchase a piece of equipment worth a total of €48,000.
... AND OLDER PEOPLE
While we see an indispensable element in carrying on tradition in the youngest, we need to think about who is in charge of passing them on: Latteria Montello attaches fundamental importance to the role older people play in society; in the belief that they are the guardians of Tradition and of those indispensable values for the development of future generations. By virtue of this, every year the company demonstrates its closeness to the elderly through support of associations such as the AUSER National Association, committed to promoting the active ageing of the elderly and enhancing their role in society.
Indeed, grandparents are the true pillars of today’s families and society. Engaged in support activities on a daily basis, around 17 million grandparents take care of their grandchildren through simple, but fundamental actions: picking them up from school, preparing meals, accompanying them to various after-school activities and helping them with their homework. Today more than ever, Latteria Montello must strengthen the role of grandparents , giving them a concrete, central value, and bringing out the potential that only grandparents are able to express.
The company goal is twofold: to enhance the figure of grandparents and elderly people in society and stimulate interaction and active involvement of people with the Nonno Nanni brand.
For Grandparent Day 2023, we launched the solidarity initiative “In cucina coi nonni” (“In the kitchen with grandparents”), a digital campaign celebrating the recipes handed down by our grandparents, that are in our hearts and encapsulate all the goodness of tradition.
Through this initiative, we invited users to log on to the “Nonno Nanni Community” to share a photo of a recipe made with a Nonno Nanni product of their choice, but prepared following steps handed down by their grandparents. The most curious and appetising recipes were collected at the end of the campaign in a digital recipe book that was then sent to all those taking part.
The nicest, most original recipes were also included in the highlights of the Instagram profile in a set of stories, and became the protagonists of posts published on the Nonno Nanni social media channels on 2 October to wish all grandparents a happy holiday.
METHODOLOGICAL NOTE
This document constitutes the Sustainability Report of Latteria Montello S.p.A., drawn up on a voluntary basis, aiming to transparently notify its stakeholders of the company’s commitment to sustainable development and to a model of doing business that respects social, environmental and economic realities.
These Financial Statements cover the period from 1 January 2023 to 31 December 2023, coinciding with the time frame of the Statutory Financial Statements. In order to allow comparison and comparability of the company performance over time, the figures for the year 2022 have also been reported. The document, to be published annually, has been prepared in line with the requirements of the GRI Sustainability Reporting Standards (hereinafter GRI Standards), published by the GRI - Global Reporting Initiative, based on the In Accordance option. This 2023 Sustainability Report can be viewed and downloaded at www.nonnonanni.it. For clarification and further information, please send an e-mail to sostenibilita@nonnonanni.it.
The document, not subject to external assurance, was approved by the Board of Directors on 30/07/2024.
1. THE CONTENT AND BOUNDARY OF THE REPORT
It reports on certain GRI Standards or part of their content, on issues considered relevant in terms of economic, social and environmental impacts for the type of activities and processes conducted by Latteria Montello and for the interest of its stakeholders. The process that led to preparation of the 2023 Sustainability Report involved company management and the main functions they coordinate.
To ensure the quality of the information reported, the GRI principles of accuracy, balance, clarity, comparability, completeness, sustainability context, timeliness and verifiability were followed in preparing the Report.
The company conducted a materiality analysis to identify the actual and potential impacts generated on the economy, the environment and people. It considered possible human rights violations with regard to negative impacts and assessed the contribution to sustainable development with regard to positive impacts.
To assess potentially negative impacts, all company policies, procedures and actions implemented to prevent and mitigate adverse effects were considered.
Prioritisation allowed the company to choose material themes to be reported. At the methodological level, the main positive and negative impacts were classified and evaluated based on their severity and likelihood of occurrence.
The perimeter of the information in this Sustainability Report is fully aligned with the reporting perimeter of the Statutory Financial Statements of Latteria Montello S.p.A., whose production facility and offices are located in Giavera del Montello (TV).
2. MAIN CALCULATION CRITERIA
Methodological indications on how to calculate the social and environmental indicators in this Sustainability Report are given below.
Energy consumption
Latteria Montello energy consumption (diesel, natural gas, biogas from anaerobic digester, electricity) was calculated using the Giga Joule (GJ) as unit of measurement. The conversion factors published in the UK Government’s DEFRA (Department for Environment, Food and Rural Affairs) database for the years 2022 and 2023 were used to standardise the different energy carriers.
Direct (Scope 1) and indirect energy emissions (Scope 2)
Greenhouse gas emissions were calculated in terms of CO2 equivalent, following the GHG Protocol. Latteria Montello includes the following emission categories in this document:
Scope 1 emissions: include all direct emissions generated by the company, i.e. those that occur physically within the company perimeter and come, for example, from the use of heating fuels or company vehicles.
• For emissions related to fuels (diesel, natural gas, biogas from anaerobic digester), the emission factors published in DEFRA, Conversion factors - Full set 2022,2023 were used.
Scope 2 emissions: these refer to the greenhouse gas emissions associated with the generation of electricity purchased for consumption in the organisation. Electricity-related emissions are calculated using two different methods:
• Location-Based reflects the average emission intensity of national grids, considering both renewable and non-renewable production; GHG emissions are calculated using an average emission factor that refers to the national electricity mix: the higher the share of renewables used by a specific country, the lower the relative emission factor.
For the Location-Based approach, the factor given in the document “International Comparisons” published by Terna on Enerdata data was used.
• Market-Based reflects the emissions generated by electricity, influenced by the company choice to purchase it certified from renewable sources. To be considered renewable, purchased electricity must be covered by contractual instruments such as Guarantees of Origin (GO). The portion of purchased electricity covered by GO is considered zero-emission, while the remainder is multiplied by a factor called “residual mix”, which takes the emission intensity of the national grids into account, considering only non-renewable generation.
For the Market-Based Approach, the Residual Mixes reported in the document “European Residual Mixes” published by AIB (Association of Issuing Bodies), updated annually, were used.
In view of the fact that the company buys 100 per cent of its electricity covered by Guarantee of Origin Certificates, we did not need to use the market-based approach for the calculation of Scope 2 emissions as these are considered to be zero.
Other issues
The information on significant emissions of nitrogen oxides (NOx) and sulphur oxides (SOx) reported in line with GRI indicator 305-7 - Nitrogen Oxides (NOx), Sulphur Oxides (SOx) and Other Significant Emissions was processed by estimating the hours of operation and the flue gas flow rate of existing smokestacks, resulting in the annual tonnes of pollutant emissions generated by Latteria Montello activities.
Health and safety
The accident frequency index for GRI indicator 403-9 Accidents at Work is calculated as the ratio of the total number of recordable accidents to the number of hours worked by employees during the same period, multiplied by 1,000,000.
GRI CONTENT INDEX
The GRI Content Index is a navigation tool that specifies which GRI disclosures were used in preparation of this report, which disclosures were reported, and where these disclosures can be found in the document or in other documents. In addition to making the reported information easily traceable, the GRI Content Index ensures that the overall reporting process is transparent and credible.
GRI 1: DECLARATION OF USE
Declaration of use Latteria Montello S.p.A. has reported the disclosures in the GRI Content Index for the reporting period 01/01/202331/12/2023, in accordance with the “In accordance” method. GRI 1 used GRI 1: Fundamental Principles 2021
Relevant GRI sector standards [N/A]
AND EMISSIONS
PERFORMANCE INDICATORS
COMPREHENSIVE AND TRANSPARENT COMMUNICATION
GRI 417: Marketing and Labelling
Labelling and product and service information requirements
Incidents of non-compliance concerning labelling and information on products and services 50
Incidents of non-compliance concerning marketing communications 50
PROFESSIONAL GROWTH
GRI 404: Training and Education 2016
404-1
In light of Latteria Montello business, the GRI 301-1 indicator refers only to the amount of packaging material purchased in the 2022-2023 two-year period. Due to confidentiality constraints, complying as strategic information for the business, the amount of raw materials purchased for cheese production was omitted in this Sustainability Report.
Average number of training hours per year per employee 80
DIVERSITY AND EQUAL OPPORTUNITIES
GRI 405: Diversity and Equal Opportunities 2016
405-1
Diversity in governing bodies and among employees 16-70
GRI 406: Non-discrimination 2016
406-1
Incidents of discrimination and corrective measures taken No incidents of discrimination occurred in 2022-2023.
SUSTAINABLE PROCUREMENT PRACTICES
GRI 204: Procurement practice 2016
204-1
Proportion of expenditure made to local suppliers 38
RESPECT FOR HUMAN RIGHTS
GRI 408: Child Labour 2016
408-1
Activities and suppliers presenting a risk of child labour incidents
GRI 409: Forced or compulsory labour 2016
409-1
Activities and suppliers presenting a risk of incidents of forced or compulsory labour
HEALTH AND SAFETY AT WORK
GRI 403: Health and Safety at work 2018
403-9 Accidents at work 77
Latteria Montello contracts provide for full acceptance of the Code of Ethics.
Latteria Montello contracts provide for full acceptance of the Code of Ethics.
LATTERIA MONTELLO S.p.A.
Fante d’Italia, 26 – 31040 Giavera del Montello (TV) ITALY – Ph. +39 0422 8833