RE PORT OGNIBENE POWER ES G 2023
The 2023 Sustainability Report of Ognibene Power SpA has been prepared by:
Cristina Ognibene Vice President
Antonio Lupo Chief Financial Officer
Lucilla Vismara Human Resources Manager
Valentina Verzani Administration Manager
Antonella Pietragalla Safety Manager
Federico Fornaciari Environment Manager
Stefano Cappelletto Operations Manager Actuators B.U.
Luigi Starace
Massimo Cattani
Silvia Castagnetti
Operations Manager Steering Units B.U.
Production Purchasing Manager
Marketing & Communication Specialist
The Sustainability Report can be consulted on the website of Ognibene Power SpA at: www.ognibene.com
For additional information: Silvia Castagnetti
Marketing & Communication Specialist e-mail: castagnetti.silvia@ognibene.com
Approved by the Board of Directors at its meeting on September 23, 2024
This document is an abstract of the ESG Report 2023, available in its full version.
Graphic design: pindarica.it
We are the steering people
To be an inspiration for future generations. and we pursue a challenge above and beyond technology.
Driving the future since 1953
Letter to stakeholders
Dear Stakeholders,
We would like to begin the presentation of our second Sustainability Report with an ancient Japanese proverb: “A journey of a thousand miles begins with a single step.”
With this wisdom in mind, we welcome you to the presentation of our 2023 Sustainability Report. Every significant change starts with small, meaningful actions. This year, we have made notable strides on our sustainability journey, and we are excited to share the results and initiatives that have marked our path.
Achieving the silver medal from EcoVadis reflects our commitment to this journey. EcoVadis is a leading sustainability assessment platform, evaluating the environmental, social, and ethical practices of companies over 180 companies around the world.
The future value of the company arises from the strength of the core values
that have guided it since its foundation, focused on the customer and the product. This value is then amplified by integrating sustainability, a crucial topic for the company, starting from corporate strategic choices.
Claudio Ognibene, President & CEO
In addition,
2023 has been a memorable year for Ognibene Power, both professionally and personally. We celebrated the 100th anniversary of the birth of Olmes Ognibene, the company’s founder, and the first 70 years of our history. On May 10, 1953, Olmes Ognibene signed the business register at the Reggio Emilia Chamber of Commerce and began working alongside his wife Amneris in the small “Officina Meccanica Ognibene Olmes” in Fosdondo di Correggio. Since then, the company has grown and evolved, warmly welcoming the involvement of his children Claudio and Cristina Ognibene.
To celebrate these significant milestones, the company chose to invest in the future through initiatives for its associates and the local community: on September 16, we hosted a Family Day at our HQ in Reggio Emilia, inviting our colleagues as the main guests. On this occasion, the company donated an ambulance to the Red Cross of Bagnolo in Piano and established a scholarship for a young female student in her first year of Master’s in Mechatronic Engineering at the University of Modena and Reggio Emilia (UNIMORE).
The key to our 70 years of continuous development lies in substantial investment in research and development
ongoing training for our team, and a strong commitment to occupational safety and comprehensive sustainability.
Cristina Ognibene, Vice President
For 2024, Ognibene Power has already set some priority goals, including: implementing flexible working hours, a Performance Management system to better align business strategies with employees, and establishing a solid foundation for the launch of the Academy to enhance and develop its associates.
We are therefore convinced that every small step brings us closer to our goal: it is the sum of these daily actions that turns great ambitions into reality.
Highlights 2023
€ 133,150,872
Revenue from sales and services
251
Active suppliers
606
Employees
5,502
Training hours
4,317.37
Tons of CO2-eq (Scope 1-2) emitted into the atmosphere
New hires
46 595 2,210
Partecipants
Tons of waste recovered/ recycled
Methodological note
This document represents the second edition of the Sustainability Report of Ognibene Power SpA (hereinafter also referred to as Ognibene or, more generally, the Company, Business, or Enterprise) and covers the information for the period from January 1, 2023 to December 31, 2023, presenting, where possible, data for the three-year period 2021-2022-2023.
This report focuses exclusively on Ognibene Power. Any excluded locations or offices from the data calculations are noted in the text, along with the reasons for their exclusion.
The document has been prepared with reference to the GRI Standards, issued in 2016 by the international organization Global Reporting Initiative and most recently updated in 2023. Furthermore, although the Company is not subject to these obligations, the Sustainability Report has been prepared considering the requirements of the European Directive 2022/2464 (Corporate Sustainability Reporting Directive - CSRD) concerning the disclosure of non-financial information.
The calculation of Added Value and its Allocation Statement, considered relevant for measuring the economic impacts on the Company’s main stakeholders, comply with the Italian standard GBS-Principles for the Prepa-
ration of Social Reports.
The reporting of economic, social, and environmental performance is structured in line with the material topics resulting from the materiality analysis conducted in accordance with the principles of GRI 3 (v.2021). However, this Report also addresses broader social and environmental issues that are not deemed particularly high priority.
With reference to the materiality analysis, it should be noted that, considering the latest regulatory updates regarding sustainability, a new methodology has been used compared to the previous year (see par. 1.9) to ensure methodological alignment with international non-financial reporting standards.
Finally, within this document, the correlations between the topics covered and the United Nations’ 2030 Agenda Sustainable Development Goals (SDGs) are indicated, selected according to Ognibene’s areas of importance, as further detailed below and in the chapter “Improvement Objectives.”
This report—which we remind you is voluntary and not subject to any legal requirement—has not been subject to external assurance.
The IDENTITY OF OGNIBENE POWER
Who we are Our history
Ognibene Power SpA is a customer-oriented manufacturer of first-class steering systems, determined to maintain its market leadership and ensure growth through investments and careful management.
Ognibene intends to continue expanding its business globally, focusing its competitive advantage on the development of innovative technologies and strengthening its strategic role in the market.
The company believes in deep collaboration within its global team to ensure excellent levels of product and customer service.
Ognibene is dedicated to creating and developing lasting relationships, offering its customers products and services of superior quality compared to competitors.
The company’s guidelines are:
• Teamwork in every aspect of the organization;
• Continuous improvement in every phase of our activities;
• Prevention rather than correction of problems;
• Mutual trust at all levels of our business.
My work has always been about research.
Everything I did over these 60 years of business was to ease the operator’s work.
Olmes Ognibene, 1923-2017 Founder
In 2023, the family and the company celebrated the 100th anniversary of Olmes Ognibene’s birth, the founder of Ognibene Power SpA, while also marking the first 70 years of the company’s history. A survivor of the war and prison, as described in his book La Frusta Sul Cuore, Olmes, the son of farmers, became enthralled with mechanics and decided to dedicate his life to it.
After investing his initial earnings and loans from family members in the purchase of parts, Olmes completed his first “Carioca” tractor at 25 years of age, driving it in person in the May 1, 1948 parade.
The sole proprietorship Olmes Ognibene di Mario was registered in the Chamber of Commerce in 1953. Olmes began with the artisanal production of specialized agricultural tractors. Later, following the needs of the market, he began producing trailers for transport of crawler tractors, loaders, plows, bulldozers and rippers for the ceramics industry and flatbeds and machinery for the
wine sector. In the 1970s, Olmes took on a new challenge: creating a hydraulic system for a plow.
In the 1960s, Olmes understood the potential of the hydraulics sector and in 1969 he decided that the company would specialize in hydraulics. In the 1980s, Claudio Ognibene, the eldest son of Olmes, born in 1956, developed the first and second generation of hydraulic actuators which, in the 1990s, were the solutions that supported the company’s development.
1953
Ognibene Power is officially registered at the Chamber of Commerce
1980 1990 2005 1969 1984 2003
Development and manufacturing of first-generation power steering actuators
Major focus on hydraulic production: actuators and power units
Development and manufacturing of “sleeve type” power steering units
Development and manufacturing of second-generation power steering actuators (double rod)
Incorporation of OHL (Ognibene Hidrostatica Ltda)
Worldwide highest market share in off-highway power steering actuators
Incorporation of OIL (Ognibene India Pvt. Ltd.). First production plant is inaugurated in Maharashtra
Incorporation of ONA (Ognibene North America LLC)
Established the China’ location in Suzhou with subsequent expansion in the Yangtze River Delta: incorporation of OHS (Opower Hydraulic Systems) in 2022
Incorporation of OKK (Opower Japan K.K.)
India’s second production plant is inaugurated in Punjab
Incorporation of OPD (Opower GMBH Germany)
1.3
The institutional and governance structure
The ownership structure of Ognibene Power SpA steering systems manufacturer, which is determined includes 2 shareholders: Claudio and Cristina Ognibene. The shareholders elect:
• Board of Directors
• Board of Statutory Auditors
• Independent Auditors
Board of Directors
The Board of Directors, also referred to as the “Board”, consists, in compliance with the By-laws and the Italian Civil Code, of three Directors, led by a Chair, who is replaced by the Deputy Chair when required.
Also in compliance with the provisions of the By-laws, the Board of Ognibene Power SpA remains in office for three years and is elected by the Shareholders’ Meeting.
The composition of the current Board is shown below. It was appointed on the basis of shareholder resolution of June 17, 2021 and its term of office will come to an end with the approval of the financial statements for the year 2023, in June 2024.
First and Last Name Function
Claudio Ognibene Chair of the Board of Directors Managing Director Director
Cristina Ognibene
Deputy Chair of the Board of Directors Managing Director Director
Irene Ognibene Director
The Board of Directors, also referred to as the “Administrative Body”, holds executive power over the company. The Board is assigned the task of carrying out the resolutions of the Shareholders’ Meeting and managing business activities.
In carrying out its duties, the Board is required to draft a strategic, industrial and financial plan and break it down into individual financial years, while constantly monitoring operations to ensure that the company continues to operate as a going concern.
The Board plays a leading role in corporate governance: it decides on and approves the distribution of powers and controls (“checks and balances”) or responsibilities across every level of the organization. To this end, the Board may delegate some of its functions to a director or a body. The Board defines and enacts all organizational, administrative and accounting aspects of the company.
The Board, represented by its Chair or Deputy Chair, represents the company legally and with regard to all external stakeholders.
The Board adopts and oversees compliance with the most important company documents, deriving from legislative requirements (such as the OMM or the GDPR) or the company’s internal regulations (such as the Code of Ethics or the ESGs).
We could informally state that the Board is the strongest and most representative body of the company, and its members are the individuals most informed about the company’s performance and plans, especially when the directors are also managers (“executives”).
Board of Statutory Auditors
The Board of Statutory Auditors is the company’s control body. Also elected by the Shareholders’ Meeting, in the Italian legal system, it is understood as the guarantor of the legality of the Board’s decisions and the compliance of operations with the intent of the Shareholders.
The Board of Statutory Auditors supervises the proper organizational, administrative and accounting structures and, more generally, the application of the principle of “proper administration”, examining the actions of the Board; it supervises observance of the company’s Bylaws; it supervises the codes of conduct drafted by the company.
The power of the Board of Statutory Auditors is substantiated in the possibility of challenging the decisions of the Board or its delegates before the court or directly informing the Shareholders’ Meeting about any irregular operations.
In compliance with the By-laws and the Italian Civil Code, the Board of Statutory Auditors consists of five members and is led by a Chair. The Board of Statutory Auditors will remain in office on the basis of shareholder resolution of June 17, 2021 (the same one that appointed the Board) until the approval of the 2023 financial statements (the same as the Board).
The composition of the Board of Statutory Auditors in office is shown in the table below.
Independent Auditor
“Independent audit” refers to the necessary procedures and the standards applicable to the formation and drafting of the document called the “Independent Auditors’ Report”, which expresses an opinion about the company’s financial statements. This Report is required by law. This complex activity is referred to as auditing.
At planned, regular intervals, the auditors analyze the accounting data (economic, capital and financial) which are used in the formation of the financial statements and analyze and verify the relative internal control procedures. When the audit is successfully completed, the company obtains the certification of the financial statements.
The current independent auditors are HLB Analisi Spa, on the basis of shareholder resolution of June 17, 2021 (the same one that appointed the Board and the Board of Statutory Auditors), until the approval of the 2023 financial statements (the same as the Board and the Board of Statutory Auditors).
Luigi Gesaldi
Francesca Catellani
Francesco Foderaro
Ilaria Pingani
Chair of the Board of Statutory Auditors
Statutory Auditor
Statutory Auditor
Statutory Auditor
Alternate Statutory Auditor
Alternate Statutory Auditor
The Board
decides and approves the distribution of powers and corporate responsibilities.
Riccardo Moratti
Shareholders
Claudio Ognibene Cristina Ognibene
Elect Approve
Board of Directors Board of Statutory Auditors
Prepares
Financial Statements
Independent Auditors
Controls Certifies
Manages Establishes and oversees Adopts and oversees
Company
Customers Suppliers
Organizational, administrative and accounting structure adequate for the nature and size of the business
OMM Law 231/2001
ESG Supervisory Body
Code of Ethics
GDPR Privacy
Whistleblower
The organizational structure
The organizational chart of Ognibene Power SpA is shown below:
Vicepresident Environmental Legal Responsible
Environment ENV Finance Control Administration FCA
Safety R.S.P.P.
Information Comm. & Technology
Human Resources HR Apac Americas C.O.O.
Mechatronics R&D
Product Validation & Verification
Global Strategic Purchasing
Operation Acturators
Purchasing PUR
MRO Purchasing MRO
Business Development BD Sales & Distribution SD Facility Management FM
Product Engineering PE_ACT Product Engineering PE_ST
Operation Steering Units
President & CEO
Claudio Ognibene
The company’s organizational structure includes two business units:
• Actuators Business Unit
• Steering Units Business Unit
These business units are associated with a number of staff functions specified in the organizational chart below.
Each position shown in the organizational chart includes a detailed description specifying the following aspects:
• Purpose of the job
• Jobs
• Organizational Relationship
• Qualifications required, broken down between Knowledge, Specific Qualification, Language, Cross Abilities.
This structure allows for the optimal management of processes, greater efficiency of human resources and increased organizational clarity of means, roles and procedures.
In 2023, to ensure the development of innovative products in increasingly high-performance and advanced steering systems, the Company established the new Mechatronics Business Unit.
The new R&D structure is composed of: a Manager with proven experience in the automotive sector, mechatronic and electronic engineers, and new professional roles that facilitate the development of mechatronic systems by designing electrical/electronic and control systems that are flawless in terms of safety, performance, and technology. The new roles introduced include System Architect & SW Integrator, Control System Engineer, and Testing System Engineer.
Presence in the territory
The Ognibene Group around the world
70,000 m2
Italy
Ognibene Power SpA (OPW)
Reggio Emilia
Headquarters, Sales & Manufacturing
Ognibene operates internationally. Specifically, its locations are in the following countries:
Brazil
Ognibene Hidrostatica Ltda (OHL)
Caxias Do Sul
Sales & Manufacturing
India
Ognibene India Pvt. Ltd. (OIL)
Pune
Sales & Manufacturing
Rajpura
Sales & Manufacturing
China
Opower Hydraulic Systems Co., Ltd. (OHS)
Jiaxing
Sales & Manufacturing
USA
Ognibene North America LLC (ONA)
Charlotte, NC
Sales & Manufacturing
Japan
Opower Japan KK (OKK)
Osaka
Sales
Germany
Opower GmbH (OPD)
Ulm Sales
Ognibene Hidrostatica LTDA (OHL)
Location: Caxias Do Sul - Brazil
Since: 2005
GM: Mr. Rodrigo Minozzo
Core business and equipment
• Manufacturing and sale of hydraulic actuators
• Distribution of steering units
• Active on local and global market
• Process Engineering department
• Machines tested and operators trained at Ognibene HQ
Ognibene India Private LTD. (OIL)
Locations:
• Pune, Maharashtra - India
• Rajpura, Punjab - India
Since:
• 2006
• 2022
GM: Mr. Rajesh Tyagi
Core business and equipment
• Manufacturing and sale of hydraulic actuators
• Manufacturing and sale of steering units
• Active on local and global market
• Product and Process Engineering department
• Machines tested and operators trained at Ognibene HQ
Ognibene Hydraulic Systems (Jiaxing) CO. LTD. (OHS)
Location: Jiaxing, Zhejiang - China
Since: 2023 - former Ognibene Hydraulic Components (Suzhou) Co., Ltd. (OHC) active 2007-2022
GM: Mr. Mirko Belli
Core business and equipment
• Manufacturing and sale of hydraulic actuators
• Manufacturing and sale of steering units
• Active on local and global market
• Process Engineering department
• Machines tested and operators trained at Ognibene HQ
Ognibene North America LLC (ONA)
Location: Charlotte, North Carolina - USA
Since: 2010
GM: Ms. Ursula Bonfiglioli
Core business:
• Distribution of hydraulic actuators and steering units
• Assembly line for hydraulic actuators
• Active on local market
• Milk run service
• Safety stock availability upon agreement
Opower Japan K.K. (OKK)
Location: Osaka - Japan
Since: 2014
GM: Mr. Ryota Kumei
Core business and equipment:
• Sales office
• High service level for Japanese Customers
• Deep investigation of potential Japanese suppliers
• Wide connection with Japanese technology
• Active on local market
Opower GMBH (OPD)
Location: Ulm - Germany
Since: 2019
Staff: Mr. Christian Ketscher Core business:
• Sales office
• High service level for German Customers
• Wide connection with German technology
• Active on local market
The business model: how we create value
The foundations of Ognibene Power lie in its business model, which transforms inputs into outputs through its activities to achieve strategic goals and create longterm value. These activities generate both positive and negative impacts on the environment and society. Positive impacts result in more efficient resource use and improved conditions for stakeholders, while negative impacts can deplete external resources.
Ognibene has identified and evaluated the main impacts generated by its activities with the goal of limiting negative impacts and enhancing positive ones (for details, see the chapter “Materiality Analysis”). Additionally, in order to monitor business performance and set improvement goals, the company has evaluated and selected a series of social, environmental, and economic KPIs (Key Performance Indicators), which are reported in the following sections of this document.
According to the guidelines of the IRF Integrated Reporting Framework, the value of a company and its long-term success are identifiable through six tangible and intangible elements: natural capital, productive capital, financial capital, intellectual capital, human capital, and social and relational capital.
Generating economic value remains a cornerstone of management: it ensures investment capability and long-term planning. Sustainability is the new component of strategic decision-making, which, while pursuing value creation for the customer, balances positive impacts on the environment and social fabric.
Economic value creation starts from the company’s capital and founding values. The passion for technology, commitment to innovation, courage, and integrity of our actions are applied to resources represented by people (human capital), know-how (intellectual capital), the environment (natural capital), territory (social and relational capital), assets, and suppliers (productive and financial capital), resulting in a portfolio of products, in
constant improvement and evolution, that represents value for 21st-century agriculture. The economic value recognized by the customer helps keep the innovation wheel turning, enriching know-how, knowledge, and generating new investments.
Sustainability is expressed in creating value for both the environment and the social fabric. For the environment, through efforts to reduce non-renewable resources and implement circular practices. For the social fabric, through commitment to health and safety, well-being and inclusion of people, and the enhancement and expansion of skills.
The goal is to limit negative impacts and to exploit positive ones
The impacts the company generates externally are graphically represented below.
Passion
Integrity
Quality
Innovation
Territory Commitment
Product
Reduction of
Emission
Circular practices
Capital Impact
People
Assets
Suppliers
Environment
Responsible management
Interventions in the territory
Commitment to health and safety
Well-being of people
Diversity and inclusion
Enhancement of skills
Strategic design and sustainability management
ESG governance is the responsibility of the Board of Directors of Ognibene Power SpA. Soon, the matter will be delegated to the role of ESG Manager, who will receive guidelines and policies from the Board and will report to the Board on trends and propose changes to the policy.
The ESG policy will transversally involve all corporate functions, represented by their pro-tempore manager, who may delegate the matter to a function collaborator.
The ESG policy will include the management of the following topics:
Energy Environment
Aware consumption
Generation from renewable sources
Purchase from renewable sources
Enhancement of people
Training and retention
Talent development
Gender equality
Waste management
Climate risk
Environmental risk
Compliance
Code of Ethics
OMM pursuant to Law
231/2001
Supplier evaluation according to ESG criteria
Co-engineering collaborations
The ESG manager will be responsible for drafting the annual ESG report and customer and supplier relationships for ESG thematic areas. After consolidating ESG expertise in the parent company, the manager will begin to extend the policy to the group’s locations in India, China, Brazil, and the USA.
ESG Governance
Board of Directors
Reports and proposes
Adopts Enacts
ESG Policy
ESG Manager
Transversal across all stakeholders Delegates
Sustainability People Compliance Energy Environment
1.8
Stakeholder mapping and engagement
Our stakeholders
The company has identified the following categories of stakeholders. The channels and topics of engagement for each of them are presented in the table on the following page.
Employees, staff and associates
Trade unions
Suppliers
Trade associations
Public Administration
Schools and Universities
Banks and Credit institutions
Customers
In the internal context:
Employees, staff and associates, governance bodies and ownership.
In the operating context:
Suppliers, customers, banks and credit institutions.
In the socioeconomic and local context:
Schools and universities, public administration, associations.
Channels of communication and dialog
Stakeholders
Engagement channels
Company visits
Customer visits
Customers
Suppliers
Employees, staff and associates
Social report
Annual financial statements
Company visits
Supplier visits
Social report
Annual financial statements
Annual meeting with the management
Monthly communications with Steering News, newsletter published by HR
Communications via the Telegram channel
Notice board
Celebration of Special Occasions
Annual meeting
Workers’ Safety Representatives
Governance bodies and ownership
Periodic meetings on occupational health and safety and environment
Whistleblower Management
Inspections with the Company Physician/HR/Supervisors
Monthly board meetings
Quarterly Board of Directors meetings
Annual Shareholders' Meeting
Public Administration Visits of technical executives and directors at the company or at project sites
Schools and Universities
Company visits by students
Associations
Banks and Credit institutions
Monthly meetings
During award ceremonies/special occasions
Annual financial statements
Half-yearly meetings at the company
Engagement topics
Alignment with company values
Economic analysis of the relationship
Future developments
Alignment with company values
Economic analysis of the relationship
Future developments
Updating of data on profitability, quality, training activities, future projects
Communications on various topics
Information and updating on company events
Articles on general culture
Continuous improvement in working conditions
Listening to worker requirements on topics concerning occupational health and safety and environment
Performance
Outlooks
Governance
Market
Social impact
Developments in the local area
Training
Market
Social impact
Reports
Sustainability
Performance
Outlooks
1.9
Materiality analysis
The materiality analysis was developed in line with the standard ‘GRI 3: Material Topics 2021’ and considering the changes introduced by the CSRD and ESRS1 standards.
The new methodology demands organizations to question their ability to generate impacts on the environment, people, and the economy through their value chain activities. We therefore speak of ‘impact materiality’ in that an aspect is defined as material by the significance of the impacts generated (positive and negative) that it aggregates.
To align with the new standards, Ognibene carried out an initial impact materiality exercise by adopting the ‘inside-out’ approach, thus focusing on the actual or potential impacts generated towards the outside world and its stakeholders.
The company conducted the materiality analysis through the following steps:
1. Identification of potential material issues and the associated impacts generated: through an industry benchmarking and analysis of the main activities in Ognibene’s value chain, the relevant issues and the impacts, both negative and positive, that the company generates/could generate towards stakeholders were identified;
2. Evaluation of the impacts generated: The main internal functions assessed the impacts identified at the previous stage following the parameters defined by GRI 3 (v.2021). In particular, the following elements were taken into consideration during this exercise:
• The type (actual/potential);
• If potential, the probability of occurrence;
• The sensitivity of the environmental, social, and regulatory context in which the impact occurs;
• The spread of the effects (positive and negative) among the categories of impacted stakeholders;
The remediability of the damage (in the case of negative impact).
3. Analysis of topics’ impact degrees: for each qualitative variable above, a numerical parameter was associated which, when added to the others, resulted in a final score for each impact, normalized on a 1-5 scale. For each theme, the average of the associated impact ratings was averaged to quantify the overall positive and negative impact of a specific theme (hereafter ‘score’).
4. Definition of the materiality threshold: the material topics are those that have scored higher than 3 and are2:
1. Technology, Innovation, and Research (+)
2. Health and safety of employees and collaborators (-)
3. Energy and emissions (-)
4. D&I and equal treatment (+)
5. Skills development and professionalism (+)
6. Waste Management and Circular Practices (+/-)
7. Water consumption (-)
8. Workers’ welfare (+)
9. Product Quality (+)
10. Land and community development (+)
11. Privacy and cybersecurity (-)
12. Responsible Supply Chain (+)
1 European Sustainability Reporting Standard
2 Below, the sign (+) indicates that only positive impacts are associated with the theme; conversely, (-) means that only negative impacts are associated with the theme. Conversely, (+/-) means that both positive and negative impacts are associated with the theme.
Although the Sustainability Report focuses especially on the above-mentioned topics, as they are considered materially impactful, broader social and environmental issues, not considered material, are also addressed within the document.
Topics and impacts
Technology, Innovation, and Research
Positive spill-over effects on local people and economic systems through R&D investments
Quality of products
Positive impacts on customer relations and increased customer satisfaction through continuous improvement of the products offered by obtaining international voluntary certifications
Energy and emissions
Increased carbon dioxide (CO2) emissions into the atmosphere due to increased energy consumption from fossil fuels
Health and safety of employees and collaborators
Increase in workplace accidents due to a lack of dissemination of an occupational health and safety culture in companies
Workers’ welfare
Improvement of the quality of life of employees and their families through welfare policies that promote an appropriate work-life balance
Increase in employee satisfaction, resulting in talent retention, made possible by remuneration plans aligned to the market environment
Development of skills and professionalism
Enhancing employees’ competencies and skills, and increasing their job satisfaction
D&I and equal treatment
Generating a positive organisational climate by fostering an inclusive, respectful and welcoming work environment in which employees feel comfortable performing their tasks and interacting with others
Improved employee satisfaction and quality of life through efficient management of systems to ensure equal treatment and opportunities for all, both in terms of remuneration and career paths and other aspects related to gender equality and inclusion of all employees in all locations worldwide
Territorial development and community support
Contribution to the socio-economic development of the area through community-based initiatives, partnerships with local suppliers and donations
Waste Management and Circular Practices
Possible environmental damage due to ineffective management of hazardous waste and chemicals by suppliers not complying with REACH and ROHS regulations
Reduction in the use of raw materials, on the one hand, and in the production of waste, on the other, thanks to the reuse of product packaging and the recycling of packaging returned by customers
Reduced environmental impact thanks to the construction of an ecological island that prevents the spillage of pollutants
The following table lists the issues and impacts considered to be material. For the complete list of issues and impacts, please refer to the ‘Annexes’ section.
Privacy and cybersecurity
Potential damage to customers and other stakeholders resulting from loss of data or inadequate management of privacy and confidentiality protection procedures
Responsible supply chain
Contributing to the development of a sustainable supply chain by adopting policies that favour suppliers with social and environmental certifications.
Water consumption
Possible environmental damage (pollution) due to the discharge of inadequately treated water into the sewerage system from product cycles or machinery cooling activities
How to interpret the impact table
Potential Direct medium
Current Direct high
Potential Direct medium-high
The degree of negative impact refers to the ability to negatively influence ESG aspects (on the environment and people) through business activities. If the impact has been assessed as ‘actual’ we speak of the ability to generate negative effects, if the impact has been assessed as ‘potential’ we speak of risk
For example, the company has a high capacity to generate emission impacts due to its type of business, the activities it carries out, the context in which it operates, and the control and management systems it has adopted.
Positive impact refers to the ability to positively influence (through actions/initiatives/practices) ESG aspects to generate a benefit for stakeholders and/or minimize one’s negative impacts
For example, the company, by virtue of the type of business and actions/initiatives carried out (investments in R&D), has a high capacity to positively influence the people and economic systems in the area.
Although the company is not subject to CSRD obligations, for the coming years Ognibene is committed to deepening the analysis of its impacts and increasingly aligning its reporting process with the requirements of the new sustainability standards.
Certifications, Awards and Recognitions
Ognibene Power SpA has invested in the future, technological innovation and the development of the best solutions for its business. Its commitment to quality, the environment and safety are priority focuses for all company stakeholders.
We therefore believe that accreditation certified by the competent bodies in the various application areas constitutes value added and a guarantee of professionalism as well as a tool to engender trust in our customers and suppliers.
Certifications Achieved
UNI EN ISO 9001:2015
(Quality Management System), first certification in 1999.
UNI ISO 45001:2018
(Occupational Health and Safety Management Systems), first certification in 2013 (according to the BS OHSAS 18001 standards)
UNI EN ISO 14001:2015 (Environmental Management System), first certification in 2012.
UNI EN ISO 3834-2:2021
(Welding Management System), first certification in 2019.
Awards and Recognitions
1000 Italian Champion 2023
Ognibene SpA was once again named a Champion company in 2023 as part of the research performed by the ItalyPost Research Center in collaboration with il Corriere della Sera on the 1,000 best Italian businesses that have grown most over the last 6 years and achieved the best EBITDA performance.
Export Champions 2023, Sole 24Ore
Ognibene Power SpA was included in the ‘Export Champions 2023’ ranking prepared by Sole 24 Ore and Statista, an international research company, on 250 Italian manufacturing companies that excelled in exports in 2021.
The study demonstrates how engineering companies like Ognibene Power SpA played a significant role in the analysis. Indeed, a good 31% of the companies in the ranking belong to this segment, confirming the strength of Made in Italy in foreign markets.
1000 best performer companies in Reggio Emilia 2023
On 6 November 2023, at the Campioli Hall of Iren SpA in Reggio Emilia, the award ceremony for the 1,000 best-performing companies in the province of Reggio Emilia was held, based on the survey conducted by the ItalyPost Research Centre for daily newspapers EmiliaPost and L’Economia del Corriere della Sera. Ognibene SpA was recognized according to the parameters of the analysis, therefore the financial statements between 2019 and 2021.
Top Companies 2023
Ognibene Power SpA was included in the 50 leading companies in the engineering sector, based on the study of Corriere della Sera and ItalyPost Research Centre. The study focused on the financial statements of Champions companies in four sectors that excelled between 2015 and 2021, selecting the best 50 companies in each sector.
Silver medal for the Headquarters in Reggio Emilia, certification in early 2023.4
3 EcoVadis is a leading global sustainability rating agency specialising in CSR assessment, including sustainable development and supplier performance monitoring.
4 Ognibene in 2024 increased its Ecovadis score by obtaining the Silver Top 15% badge.
Transparency, legality and anti-corruption
231/2001 Model
In compliance with the provisions of Italian Legislative Decree no. 231/2001 on the administrative liability of legal entities, Ognibene Power SpA has adopted the Organizational, Management and Control Model to prevent the commission of the offenses contemplated in the decree.
The Model calls for the implementation of a preventive control system broken down into specific operational protocols that, combined with the existing implemented procedures, serve as a guide for entities that entertain relations with our Company and are involved in company processes believed to be most at risk. The adoption of the Model has therefore provided for the assessment of all sensitive company activities to determine the risks relating to corruption and other offences envisaged by the law.
This also constitutes a tool whereby the Company, in pursuing its mission, undertakes to contribute to the development of the local socioeconomic context and citizens through the organization and provision of company activities in compliance with laws and the principles of trust and integrity.
Pursuant to Art. 6 of Italian Legislative Decree no. 231/2001, Ognibene Power SpA has also appointed a Supervisory Body with the duty of supervising the implementation of the Organizational, Management, and Control Model, handling its subsequent updates, and supervising the functioning and observance of control processes. Violation of the Code of Conduct may also be reported to the Supervisory Board, by e-mail to odv231@ognibene.com.
The Supervisory Body’s members are Engineer Marilena La Grotteria, Attorney Stefano Domenichini, and internal member Ms Lucilla Vismara.
Code of Ethics
The values and principles that guide the daily activities of the Ognibene Group are formalized in the Code of Ethics, a reference document valid for all group companies which brings together the set of principles on which the corporate culture is based. Through the guidelines laid out in the Code of Ethics, the company guarantees transparent communications to all stakeholders, both internal and external, and prevents incorrect conduct that is inconsistent with the Company’s directives. The Code of Ethics, available in Italian and English and published on the company website, was updated by resolution of the Board of Directors on January 18th, 2024. Ognibene Power does not accept behavior that violates the principles of conduct set out in the Code and Model 231/01. In order to protect its employees and the Company itself, as well as to comply with the requirements of Law no. 179/2017 (so-called Whistleblowing), Ognibene has adopted an anonymous reporting system. This system allows anonymous reporting of suspicious activities, irregularities, unlawful conduct, or any violation of Model 231. Whistleblowers may use special mailboxes and are protected against any form of retaliation, discrimination, or penalization and ensure identity confidentiality, except in the case of legal obligations and protection of the Company’s rights or in case of involvement of persons accused with malice or gross negligence.
Suppliers’ Code of Conduct
The Supplier’s Code of Conduct is a document that Ognibene Power has adopted to define the principles and rules of conduct to be observed throughout the supply chain to ensure sustainable business in every context. Legality, honesty, fairness, equality, confidentiality, honourableness, transparency, and sustainability must be applied both within the team and in relations with all third parties that meet the company.
1.12
Privacy and cybersecurity
The company pays particular attention to the management of information security and the exchange of sensitive data. To guarantee and manage the topic of privacy, the company relies on an external law firm, in collaboration with the human resources office.
The company dedicates a sharp focus to cybersecurity, and again this year there was no lack of activities aimed at raising the level of security and optimizing incident response. In 2023, demonstrating the importance Ognibene attaches to this issue, preliminary audits were carried out to implement an ISO 27001-compliant management system, focusing on privacy protection and cybersecurity.
1.13
Technology, innovation and research
Ognibene Power considers it fundamental to be able to offer cutting-edge products on the global market.
The company relies on a cutting-edge Research & Development department equipped with endurance and pulsar test benches, chambers for testing in controlled temperature environments and for vibration tests, as well as open spaces to perform tests on vehicles in the field, to guarantee that the products achieve high performance even in the most extreme conditions.
The company has a dedicated team of expert engineers available for the development of personalized solutions in full compliance with the specific requirements of each individual customer.
The technical experts interact every day with the most advanced production technologies and processes, safety certifications, specialized embedded software, computer assisted design software and electronic designs, to guarantee innovative, custom product solutions to OEM (Original Equipment Manufacturer) customers for their special applications.
Ognibene has always sought to anticipate market needs, and over the years it has invested in the development of solutions that integrate the world of hydraulics and electrics in off-highway vehicles in order to improve man-machine interaction. In fact, as of 2022,
a team has been dedicated to the development of mechatronic systems. The team is equipped with all the necessary tools for the development and maintenance of projects throughout the life cycle with a focus on the management of safety requirements according to ISO 25119 and ISO 13849. From 2024, the team will also be equipped with a mechatronics laboratory with Hardware In the Loop (HIL) for testing and validation of hardware and software.
Ognibene Power’s Digital Power Steering is a cutting-edge alternative to traditional steering systems for off-highway vehicles. DPS™ is very compact and does not require a redo of the configuration of the vehicle on which it is to be installed. Vehicle maneuverability is also improved and direct connection of GPS is permitted, with mapping of the terrain and self-driving without the aid of any external steering system.
Vehicles that leave the factory with integrated DPS™ have a steering system fully type-approved for on-theroad use and designed to achieve performance levels AgPL (ISO 25119) or PL (ISO 13849). The driver can deactivate the system at any time and take control of the vehicle in any situation.
Excellent ergonomics while driving, personalization, and optimal interaction with the system are the crucial features that DPS™ is capable of offering for the first time in the off-highway vehicles segment.
The quality and excellence of Ognibene Digital Power Steering™ were recognised in 2018 with the EIMA International Innovation award and in 2023 at Agritechnica, the world’s largest trade fair dedicated to agricultural technology, thanks to the victory of two tractors by Argo Tractors: the Landini Rex 4-120 GT RoboShift Dynamic and the McCormick X5.120 P3-Drive in the Best Tractor of the Year 2024 award (the first in the Best of Specialized category and the second in the Best of Utility). Both tractors are equipped with our DPS™ system.
As regards environmental sustainability, the company tracks waste and reduces it to a minimum, reducing the material used in product packaging and setting up a packaging recycling stream with its main customers. Technical solutions have been enacted to reduce the waste of material to a minimum (e.g., hollow rods) and systems have been acquired to decrease water consumption and waste generated by the production process.
From organisational to product innovation
At a time when our automobiles are becoming veritable computers on 4 wheels, industrial and agricultural vehicles are also starting to benefit from all of those advantages deriving from technological development and automotive innovation.
The need to keep the company and its products updated and adapted to market expectations has
resulted in the need to review the R&D organizational structure.
The introduction of specialists from the automotive segment capable of transmitting to our existing personnel both new and adequate methodologies and skills that are not yet present in the company will allow for innovative product development appreciated by our customers.
At the same time, the company is organizing calculation and simulation support in the technical area, with the use of Abaqus and Amesym software for the mechanical and hydraulic parts, and a complete suite of Matlab/Simulink tools for writing, simulating, testing and software maintenance, as well as requirements management and traceability.
In this section
2.1 Employee Protection, Well-being, and Development
2.2 The importance of our clients
2.3 Responsible Supply Chain
2.4 Development of the territory and communities
The SOCIAL DIMENSION 02
Employee Protection, Well-being, and Development
Workforce Composition
One of the Ognibene company’s long-standing commitments, from its founder Olmes Ognibene to date, is to provide all employees with a welcoming and stimulating workplace within which everyone can achieve personal and professional success.
The tools used for these objectives can be summarized in the provision of training courses and careful management to ensure best practices in terms of health and safety. For both areas, it is fundamental for the company to engage in continuous dialog with workers and their representatives, to identify their needs and promote their diversity.
Ognibene Power SpA believes that job stability is an element of significant importance for the well-being of its employees and therefore undertakes - where the conditions are met - to transform temporary employment contracts into permanent contracts.
More than 80% of our staff (82.1%) are under permanent contracts, bearing witness to the strong tendency of Ognibene Power to establish robust, lasting relationships over time. Furthermore, 3.3% of the total workforce have a part-time employment contract, used primarily (70%) by women.
Below, the graphs show the composition of personnel by gender and category, along with the trends from the last three years. Additionally, there is a chart for 2023 representing the types of contracts for the personnel. For full data, refer to the tables in the ‘Attachments’ section.
Types of Contracts in 2023
As of December 31, 2023, Ognibene Power SpA had 606 employees, in line with the number of employees in the previous year.
The total of 606 people consists of 106 employees on temporary contracts, 2 on fixed-term contracts, and 498 on permanent contracts.
As shown in the table, the turnover rate for 2023 continues to decline from the previous years.
This decrease is also reflected in the male workforce, while the turnover rate for female employees, though still lower, increased compared to the previous years.
As in 2022, 39% of hires were related to the stabilization of temporary agency workers, 28% to were due to the activation of apprenticeship contracts, and only the remaining 33% involved individuals previously employed by another employer.
5 Calculated as the ratio between the sum of hires and terminations and the total number of employees.
Below, the breakdown of hires and terminations by gender and age group is presented:
Internships and Traineeships
For years, Ognibene Power has been hosting interns and trainees with different levels of education to be temporarily integrated into its workforce to establish a connection with local schools and offering young students experience in the field of hydraulic steering systems, actuators, and steering units.
Internships are aimed at High School students (work-study programs), Higher Technical Institutes (ITS Maker), or universities. The training period provides the company with networking opportunities with prospective candidates while providing students with real-world experience, skill development, and workplace
acquaintance.
Traineeships, on the other hand, are aimed at graduates or degree holders and are considered an entry pathway into the company before moving forward with employment processes.
Compared to internships, the activities in a traineeship are structured to assess the individual’s suitability for the proposed role.
During the traineeship, participants receive monetary compensation in accordance with current guidelines.
The table shows the number of interns and trainees hosted by the company over the 2021-2023 period, broken down by education level:
Diversity and equal opportunity
Ognibene Power pursues respect for the person and human dignity. Ognibene Power does not tolerate any discrimination whatsoever.
As also defined in the Code of Ethics, all Group companies reject and are committed to preventing any form of discrimination based on gender, race, sexual orientation, health status, language, religion, political opinions, personal and social conditions. Phenomena such as racism, xenophobia, or the denial of crimes against humanity, in any form, including their dissemination through social media, are condemned in the strongest terms.
Any behavior contrary to the spirit of the Code and the values of Ognibene can be reported through the Whistleblowing platform accessible from the official website.
Additionally, the Group is committed to promoting not only formal but also substantive gender equality within its workplaces, ensuring equal pay, treatment, and access to leadership positions, regardless of gender or any other reason besides merit and professional skills.
The tables below summarize the 2021-2023 period regarding the presence of women and individuals with disabilities or from protected categories within the company.
Amongst its employees, Ognibene Power embraces people of different ethnic and cultural origin, recognizing diversity as a value that enhances the work environment and makes it more stimulating. Staff from other geographical areas reaches 14.1% of the entire workforce.
A percentage higher than that of Italy, where foreign residents represent 8.7% of the total population (2023 data)6
These are very different cultures, such as those from Africa and Asia, which however manage to get along with reciprocal respect for each other. Every employee is required to be aware of and accept the culture of others, with every individual thus becoming an element of intellectual enrichment for the entire group.
On the basis of data from 2023, amongst workers from other countries, 39.5% have been with the company for more than 5 years, consolidating their professional growth; more than 60% have been included in pathways that resulted in increases in contractual level and 5.8% hold roles of responsibility, coordinating other collaborators.
The map below shows the composition of the workforce in 2023, broken down by geographical area. For complete data, refer to the tables in the “Attachments” section.
Occupational health and safety
The management of Ognibene Power SpA considers occupational safety and sustainable development to be two necessary ethical values, which constitute an integral part of the company’s operations.
In pursuing its business objectives, Ognibene Power SpA adopts principles of social responsibility and sustainable development, guaranteeing continuous performance improvement in relation to the health and safety of its collaborators.
From this perspective, the company management has decided to implement and keep active an integrated management system compliant with the most recent international standards on occupational health and safety and the environment.
The Management System according to the standards of ISO 45001:2018, adopted by Ognibene Power SpA, is a voluntary company organizational system aimed at guaranteeing the achievement of the occupational health and safety goals of Ognibene Power SpA by optimizing its processes. The company has set up a health, safety and environmental sustainability policy.
In order to constantly monitor and reduce the impact of its activities on the health of its workers and on the environment, Ognibene Power SpA undertakes to pursue and keep active the following objectives:
• regulatory compliance;
• continuous improvement;
• transparency and engagement of the parties concerned.
Health and safety at work and environmental sustainability policy
The company has determined the pertinent internal and external factors capable of influencing the achievement of the expected outcomes of its quality, safety and environment management system. These factors express the expectations from the most significant internal and external stakeholders, which the organization evaluates based on their satisfaction.
The evaluation is carried out periodically through the Context and Stakeholder matrices, identifying risks and opportunities related to quality, safety, environmental factors, compliance obligations, context, and stakeholders.
At least once per year, the top management, in collaboration with those responsible for managing the Quality, Safety, and Environment Systems, meets to evaluate performance based on the objectives, consistency, and effectiveness of the management system adopted, planning the implementation of continuous improvement actions.
Monthly Health, Safety, and Environmental Meetings are also scheduled with the HSE team and the Safety Managers, RSPP, and supervisors. These meetings aim to monitor improvement activities and enhance awareness of HSE issues. Special attention is also paid to maintaining employee health, and several preventive and periodic medical examinations are conducted each year, as shown in the table below.
According to the data from the 2023 health report, as communicated by the Occupational Health Physician during the annual meeting held on April 15,2024, there is a substantial stability in the prescriptions, except for the use of ear protection. The approach to the prescription of ear protection is precautionary, aiming to promptly address the initial symptoms and prevent the progression of the condition.
Among the preventive improvement actions, a project to reduce environmental noise has been initiated. The dynamism of the health protocol is confirmed, which is updated in collaboration with the RSPP (Responsible for the Prevention and Protection Service) based on the updated risk assessment.
Ongoing collaboration with the Occupational Health Physician, RSPP, HR, and supervisors allows for targeted evaluations to ensure the most appropriate placement of each worker based on the limitations indicated in the fitness assessment.
To increase awareness of safety and promote a culture of prevention at all organizational levels, Ognibene Power SpA uses Heinrich’s Pyramid, an instrument that, integrated into the Health and Safety Management System (ISO 45001:2018), provides a visual representation of Safety events. The goal is to create a virtuous cycle of reporting before incidents evolve into harmful events affecting workers’ health and safety.
Ognibene Power adopts principles of social responsibility and sustainable development,
The actual data from 2023 and the previous two-year period are shown below:
Heinrich’s Pyramid
An analysis of this pyramid shows that in the upper part accidents are broken down by degree of severity, while the lower part shows critical situations that did not however result in accidents.
Accident data for the 2021-2023 three-year period and the relative ratios are summarized below.
In 2023, there were 22 injuries compared to 24 in the previous two years, representing an 8.3% reduction from 2022.
The severity of injuries in 2023 led to a 21.3% reduction in lost days due to incapacity compared to the previous year. It is also noted that there were no fatalities at work during the three-year period.
Root Cause
An analysis of the root cause of accidents shows again for 2023 a higher percentage (64%) of events linked to the human factor (not paying attention, accidents linked to illness not strictly related to the work environment, over confidence).
Actions for Improvement in Workplace Safety
All injuries are thoroughly analyzed, and appropriate improvements are implemented based on the root cause.
For unsafe acts linked to the human factor, activities are carried out to boost safety awareness. The main actions planned were:
• for workers, through the continuous distribution of safety instructions (Visuals, One Point Lessons, Standard Operating Procedures);
• for supervisors, through a growth path with a view to improving the role of supervision, according to new legislative updates, and the capacity of listening and relating to employees.
For complete data regarding the nature of injuries from workplace incidents, please refer to the tables in the “Attachments” section.
The trend in the nature of injuries indicates a prevalence in the category of sprain/crushing, mainly related to material handling.
• In the category of foreign body projections (events related to particles projecting into the eyes), there is substantial stability. One of the two events in 2023 was related to imprudent behaviour involving rubbing the eyes with unclean gloves.
BruiseSprain Pain Fracture Crushing Burn Cut Pulled
Ognibene Power promotes well-being
In February 2022, the OGNIBENE POWER PROMOTES WELL-BEING initiative was launched in collaboration with L.I.L.T Lega Italiana Lotta contro i Tumori (Italian Cancer League) to develop a gradual plan of awareness-raising activities and proper information, as well as individual and group support to achieve the desired change in terms of nutritional well-being, movement, awareness promotion, and the prevention of harm from cigarette smoking.
The publication of 5 Newsletters with insights on wellness topics, complemented by initiatives like “Apple Day” or the installation of new panels in external refreshment areas with images and slogans aimed at raising awareness of improved conduct, guided Ognibene personnel throughout the year during the process of wellness improvement. The first cycle was concluded with initiatives against cigarette smoking:
• Meeting in the company with LILT specialists to share the risks of smoking;
• Availability of an individual logical tobacco advisory service;
• Possibility open to all employees to participate in a smoking cessation group.
Continuous improvement process
In the spirit of continuous improvement, in 2023, new production lines were designed and introduced with a focus on ergonomics and process automation. Specifically, a new assembly line was installed in the BU ST, which, thanks to automation and applied ergonomics concepts, ensures the handling of heavy materials with anthropomorphic robots and reduces the risk of biomechanical overload. Additionally, the workstations allow operators to work seated and have all materials within the “golden zone.”
For details regarding health and safety training, please refer to the table in the following paragraph.
Employee training and professional development
Ognibene Power believes strongly in the importance of training and the professional development of its employees, as demonstrated by the 5,502 hours of training provided in 2023, for an average of more than 8 hours per capita. After 2020 and the dramatic Covid experience, many training initiatives were transferred to web format, based on dedicated and easy-to-use platforms.
Amongst the main courses provided in 2023, occupational health and safety training covered nearly 50% of all training hours.
Training investment for continuing education was partially supported by interprofessional funds.
Every year, HR publishes its Training Plan based on a worker skills analysis performed by managers, showing the gaps between expected and acquired skills.
To ensure effective management of training activities, Ognibene follows a procedure that defines the methodologies and organizes the various stages of the process, starting with the annual assessment of the training needs of the company’s workforce.
Introducing a training system consistent with skills development encompasses the following activities:
• Systematic Education & Training: creating a training system that manages:
- Preventive training to minimize the gap between the knowledge required and the existing skills of each employee.
- Development training strategies with an analysis of training needs to be evaluated in the medium term, requirements based on leadership development (plant managers, pillar leaders) and needs based on succession plans or natural turnover.
• Internal trainer development to prepare a trainthe-trainer system, identifying candidates with suitable characteristics (knowledge + attitude), supporting them in their initial training activities (from One Point Lessons to classroom training) until they are certified.
• System for certifying and evaluating the skills acquired through training, mapping the skills acquired after the training activity for each employee (training effectiveness).
The table below summarizes the participants and training hours provided over the three-year period:
For complete data on the number of participants in training courses, please refer to the tables in the “Attachments” section.
5,500 hours of training provided in 2023
Talent management
The uniqueness of every person should be leveraged up to the maximum value that it can express. “Talent Management” means attracting, hiring, developing and motivating the best people, those most suited to the role and the context, and keeping them in the company over time. The goal is to make employees more productive and satisfied with their work, thus benefiting the organization.
We are convinced that every person has talent, one or perhaps many talents to be discovered, expressed and developed.
Talent Management boosts productivity in the company and enhances human resources, obtaining the highest possible performance. Talent Management is under the responsibility of human resources management and is a distinctive characteristic of it, since it is much more focused on covering key positions in companies.
This area is very young, and is currently being implemented in our company. The methodology adopted is described below.
Talent scouting
Relationships with schools, universities, associations, the fabric where young people are trained and access professional work. Alongside spontaneous applications, which are always appreciated, the company takes active steps to present itself to the market.
Talent acquisition
Successful talent acquisition guarantees that new hires are aligned with the company’s culture and goals and that the company is aligned with people’s culture and goals.
Talent orientation
Early preparation for the process and coaching by expert colleagues will facilitate the orientation and relationships of new hires, immediately making them part of the organization.
Talent management
Establishment and performance of a continuous company-talent and talent-company feedback process which keeps company objectives and people’s expectations clearly aligned.
Talent development
Collaborations with prestigious universities and institutions to complement and increase talent academic training and ensure that trends in the outside world are continuously picked up by antennas within the organization.
Talent succession
A great value that a talent brings to the company is the designation of a potential successor. The talent to see beyond one’s existence in the company is evaluated as a sign of the highest awareness of the role.
The importance of our clients
Types of clients
Ognibene Power SpA is a company that manufactures hydraulic actuators, steering units, hydraulic pumps and steering systems. Its products are sold to companies specialized in the construction of agricultural machinery (61%), earth moving machines (23%) and goods handling machines (6%), as shown in the following tables:
Breakdown of customers by type in 2023
Customer satisfaction
Ognibene’s mission is to provide innovative solutions that meet the needs of its customers around the world. The company is continuously monitored using internal and external KPIs and monthly scorecards sent by customers and subject to detailed review by the entities concerned (i.e., delivery performance; PPM; competitiveness).
Breakdown of customers by service type in 2023
The Customer Service department is committed every day to supporting the demands of customers worldwide.
The aspects most appreciated by customers are: global presence, detailed knowledge of the product and the technical solutions offered, innovation, and high-quality standards, which have enabled the company to receive numerous awards over the years.
The safety of the products supplied to protect our customers
Product safety is essential for Ognibene, not only to prevent accidents and damages but also to protect its customers and maintain market trust.
To ensure the safety of its products in use, Ognibene has implemented several processes/types of documentation:
• Specific forms (Application Forms) have been developed for the definition and formalization of the operating conditions of our products. These forms collect all relevant information in order to identify any special constraints/requirements expected by the customer that may not emerge from the product sheets completed during the commercial phase.
• The intrinsic safety by design is first verified theoretically through DFMEA (Design Failure Mode Effect Analysis), and then experimentally by validating the design solutions in the laboratory/testing phase.
• The safety-critical characteristics identified in the DFMEA phase, in addition to those expressly indicated by the customer, are specifically classified on construction drawings to strictly monitor compliance with the requirements defined for these characteristics.
• Operating conditions have been defined and published on the drawings, packaging, and the company’s website, where the Product Instructions are always available for consultation.
Traceability and Product Quality
Each batch of components required for the final product is verified and monitored at every stage of production through the SAP (System Analysis Program Development) and Quarta (Computer-Aided Quality Software) management systems. All Ognibene products undergo 100% functional testing and are marked with a barcode or data matrix containing a unique serial number. This allows our customers to track key production data for the products they receive, enabling them, if requested, to associate the serial number of our product with the chassis of the vehicle on which it will be installed. Full traceability in the field is guaranteed only for those customers who require it.
For specific projects where the supply specifications demand it, a system has been implemented to extend traceability to the upstream production process at Ognibene, including data on the production batches of the most critical purchased components used in the final products.
From design to production: Ognibene’s commitment to delivering quality products
Ognibene Power SpA is a leader in the steering systems sector, thanks to its extensive 70 years of experience and the careful attention it gives to providing customized solutions for its customers. The company maintains close daily collaboration with its clients, with customer satisfaction as its primary goal.
The purchasing experience for the products offered by Ognibene is tailored to meet customer needs by examining all requirements to assess the feasibility of each project, and developing the most reliable and advantageous product for the buyers.
Ognibene is continuously striving for improvement by monitoring its production process, conducting regular tests to ensure the quality and integrity of each product, while also guaranteeing compliance with international standards.
2.3
Responsible Supply Chain
Ognibene’s suppliers
Ognibene Power SpA’s main suppliers for the year 2023 can be classified by the type of goods/services purchased, as shown in the chart below. For complete data on the three-year period, refer to the tables in the “Attachments” section.
Supplier by product and value %
Number of active suppliers broken down by geographical area of origin
CHROME PLATED BAR suppliers
PROCESSED FORGED PRODUCT
In the industrial activity of Ognibene Power SpA, expenses are channeled towards raw materials to be processed (pipes, bars, forged products), chemical and thermal processes intended to ensure that materials meet design criteria and production machinery and equipment.
Suppliers may also be broken down by geographical area of origin, as shown in the table below. For the full three-year data, refer to the tables in the “Attachments” section.
The main suppliers of Ognibene Power are from the same region where the company is located, i.e., Emilia-Romagna. The number of local suppliers grew continuously from 2021 to 2023, underscoring the importance for the company of being able to create value and generate local downstream business.
Ognibene seeks out suppliers of diverse geographical origin, while also maintaining a robust connection with its territory, understood as Italy (78% of the total) and Emilia-Romagna (43% of the total).
All high value added components are sourced, as much as possible, from Italy, and components with low value added are imported.
Supplier engagement for sustainable procurement
Ognibene collaborates with high value added suppliers in co-engineering arrangements or with continuous contact and the exchange of solutions aimed at reaching increasing technological and quality standards.
Ognibene is aware of the necessary involvement of its suppliers in the following types of initiatives:
• Circular economy;
• Waste management;
• Environment and sustainability.
This will take place over time with:
• risk management programs;
• request for the adoption of standards and certifications;
• environmental impact mitigation programs;
• social impact expansion programs.
“Co-engineering” refers to a cooperative joint development model between companies, two or three at the most, in which the customer and suppliers each develop part of a complex product, in synergy. The customer leverages the skills, high specialization and production structures of its suppliers. The distinctive feature is the interdependence between the parties involved in terms of operating structures and specific technologies.
Ognibene works under a co-engineering arrangement with a number of suppliers and customers, leveraging the high technical specialization of its resources and the state-of-the-art technology of its plants.
The co-engineering program will need to be developed on the ESG topics that have already reached Ognibene from the customer side. Indeed, many customers include an ad hoc score on sustainability topics or, even more so, on the entire ESG spectrum, on their assessment forms.
Ognibene aims to raise the awareness of its suppliers who are not yet active on ESG topics with methods to be defined in the near future.
Supplier evaluation and selection
The process of selecting new suppliers takes place according to four main pillars aligned with the company’s values:
a. Assessment of the degree of technological skill and delivery capacity.
b. Competitiveness analysis (in terms of commercial conditions, production capacity, etc.).
c. Adoption of the quality manual.
d. Adoption of the Ognibene code of ethics.
The selection process first of all takes place through a self-assessment performed by the supplier, which is then followed by an analysis by Ognibene as well as periodic audit activities by Ognibene to verify the truthfulness of what emerged from the self-assessment. This audit is performed at the supplier’s location and aims to verify and monitor any risks and problems (technical or other) that could arise.
In addition, for suppliers under contract, other aspects are also checked, such as:
• the regularity of social security payments and contributions via an updated Single Insurance Contribution Payment Certificate (DURC).
• Environmental and safety compliance in line with the ISO 14001 and ISO 45001 certifications when required for the supply.
Ognibene has adopted and scrupulously respects a high profile standard with regard to its suppliers. For deliveries that respect the quality and service level, Ognibene makes the payment due without any delay,
always, with a view to strengthening collaboration over time, trust, and the relationship of reciprocal respect between human resources. In the negotiation phase, Ognibene has adopted and supervises to ensure that negotiation standards inspired by fairness are respected, as set forth in the code of ethics.
Environmental and safety audits of suppliers
Ognibene has implemented a Health, Safety, and Environment (HSE) audit program for its suppliers. Each year, the company updates this program to assess the most critical suppliers or those that may present potential risks from an environmental and safety perspective.
Suppliers are evaluated based on the type of processes they carry out for Ognibene Power and the level of influence the company can exert on the supplier. A matrix is developed that assesses the criticality of the processes and Ognibene’s influence over the supplier, generating various possible actions for supplier control.
Suppliers with the highest scores in the matrix are selected for annual audits and evaluations. Through these audits, Ognibene can prevent situations that might lead to environmental emergencies or worker safety issues. The audits also allow Ognibene to make specific recommendations and suggest actions to the audited suppliers to address potential risks.
ESG Evaluation in Supplier Qualification and Selection
Ognibene offers to include ESG topics, with procedures to be defined, in the supplier qualification process and to enact a veritable strategy capable of engaging the supply chain in the face of regulations that are becoming more severe over time and against increasingly concrete risks for businesses. Indeed, the supply chains were not built thinking about sustainability, which means that Ognibene - like other companies - will need to face strategic challenges in environmental, social and governance (ESG) management throughout its automotive supply chain.
Evaluation of new suppliers UoM 2023
The reputational risk associated with factors that are not self-evident in the environmental area (such as greenhouse gas emissions) or the area of human rights possibly not declared by suppliers is considerable because it is widespread opinion that the company must be responsible at least in part for the conduct and violations of its suppliers (even if it is not civilly liable). Ognibene will need to measure its bargaining power with respect to suppliers that do not adopt ESG standards and possibly think about replacing them with costs and timing to be assessed.
Ognibene has implemented a HSE audit program for its
Development of the territory and communities
Ognibene Power SpA recognizes the importance of donations to the community and support to local entities in its sustainability report. The transparent integration of donations into the report testifies to the company’s commitment to promoting sustainable development and improving people’s quality of life, locally and beyond.
The company chooses to support local non-profit organizations dedicated to significant social challenges such as: health, education, and the promotion of local traditions and artistic expressions. Investing in these fields is a concrete way to make a difference and create a positive social impact.
For Ognibene Power SpA, 2023 is a significant year, as it marks both the centenary of the birth of the founder, Olmes Ognibene, and the 70th anniversary of the company. In recognition of these two important milestones, the company has recognized the importance of rewarding the community that has supported it throughout its growth journey. First, Ognibene donated a fully equipped ambulance to the Italian Red Cross of Bagnolo in Piano, contributing to the provision of efficient and timely emergency medical services.
Additionally, the company established a €5,000 scholarship, awarded to Chiara Rita Piemontese, a deserving student from the University of Modena and Reggio Emilia (UNIMORE) enrolled in the Master’s degree program in Mechatronic Engineering. The aim is to support the education and development of young talent in the local community, with particular emphasis on promoting female participation in Science, Technology, Engineering, and Mathematics (STEM) education and careers—an issue that was close to Olmes Ognibene’s heart. “Our father was forward-thinking and believed in the potential of young people,” says Cristina Ognibene.
Throughout 2023, Ognibene also supported three other noteworthy initiatives: the creation of EsploWord-Eco Family Park, a 25,000 sqm green oasis in the heart of Reggio Emilia; the annual charity mission of the Memorial Idea Giroldini; and support for the project “La Tovaglia del Perdono” organized by the Reggio Ricama Cultural Circle. The latter project involved embroidering a tablecloth for the Basilica of Saint Peter in Rome, depicting the stories of Matilda of Canossa and her ancestors, using a local embroidery technique known as “Matilda embroidery” that originated in Reggio Emilia. The goal is to enhance and spread local traditions within and beyond our community.
Finally, Ognibene Power SpA stood by the Emilia-Romagna region when it needed support the most, during the floods of May 2023. Employees and management together contributed equally to reach a total of €10,000.
Looking ahead to 2024, the company has committed to join the Italian National Trust’s (FAI) Corporate Golden Donor project, with the aim of making a concrete contribution to Italy’s cultural heritage by helping to preserve its artistic works and more.
Ognibene Power SpA is also proud to sponsor local fo -
otball teams and sports clubs for the 2023/2024 season, with a total sponsorship amount of €20,500. Our partnership aims to promote the spirit of sportsmanship and contribute to the well-being of our community through physical activity and social engagement, especially for the younger generation.
The contributions, investments, and projects in favor of the
are listed below by reference year and topic.
The main initiatives supported in 2023 are listed below:
EsploWord - Eco Family Park:
a green oasis in Reggio Emilia where families can explore the nature.
“La Tovaglia del Perdono”
created by the Circolo Culturale Reggio Ricama and destined for St. Peter’s Basilica in Rome.
The ambulance in memory of Olmes Ognibene
It’s donated to the Italian Red Cross of Bagnolo in Piano on the occasion of Family Day, held on September 16th, 2023, to celebrate the first 70 years of Ognibene Power SpA.
Scholarship in memory of Olmes Ognibene
Presentation by Cristina Ognibene, Vice President, of the scholarship in memory of Olmes Ognibene to the student Chiara Rita Piemontese.
AC Reggiana 1919 sponsorship
Ognibene has committed to join the Italian National Trust’s (FAI) Corporate Golden Donor project.
Gynecological Chair SCHMITZ ARCO-MATIC:
worth 11,000 euros, donated through the twentyfirst edition of the “Idea Giroldini Memorial,” a golf competition that raises funds each year to donate to local charities and non-profit organizations with the support of various partners. It has been donated to the Franchini Hospital in Montecchio.
The ENVIRON MENTAL DIMENSION
Ognibene Power aims to integrate respect for the surrounding environment with its economic growth and the current development of its business. The environment is seen as a highly important inheritance by the company and by employees alike, and both undertake to work with full respect for it.
Ognibene Power SpA has always based its activity on the philosophy of continuous improvement, setting new environmental improvement and efficiency targets every year consistent with the Plan - Do - Check - Act (PDCA) model. Since 2008, it has implemented an Environmental Management System compliant with the ISO 14001 standard, which guarantees:
• maintenance of legislative compliance;
• the definition and updating of environmental performance improvement goals;
• the development of environmental programs;
• the systematic control of company activities that influence environmental aspects, in normal conditions as well as in anomalous and emergency conditions;
• environmental performance monitoring;
• the review of the system so as to ensure that it is always updated and suited to the reality within the company.
In 2006, the company drafted its first site environmental analysis in order to identify the main environmen-
tal aspects, and it periodically updates the document every year in order to identify new critical issues or environmental aspects that emerge over the years.
As previously mentioned, the company has adopted an environmental policy integrated with the Occupational Safety and Health System.
The company works daily to contribute to sustainable development, ensuring that the needs of the present are met without compromising the ability of future generations to meet their own needs.
In fact, in the environmental realm, Ognibene Power SpA continues to invest to guarantee constant improvements in the efficient use of resources, the protection of health and quality of life for its stakeholders and the enactment of responsible conduct in the company.
To boost knowledge of environmental matters and spread a culture of prevention across every level of the organization, Ognibene Power SpA uses Heinrich’s Pyramid, a tool which visually monitors environmental event trends, with a view to creating a virtuous cycle of reporting, before conditions are transformed into events with harmful effects for occupational health and safety.
Environmental Pyramid
In this way, environmental reports and emergencies are mapped year by year.
The following changes have been made to ensure efficient resource use:
• The purchase of a Daikin heat pump to decrease natural gas consumption;
• The purchase of four washers with the IFP system to decrease water consumption and waste generated;
• The purchase of a shavings grinder;
• The introduction of water dispensers to combat the use of plastic bottles;
• The replacement of neon lights with LED bulbs;
• The introduction of a system for monitoring energy consumption;
• The implementation of a photovoltaics system;
• The introduction of the BEKOSPLIT system for water recovery;
• The elimination of water curtain painting with dry filters;
• The implementation of compressor timing.
For the protection of health and quality of life, the following changes were made:
• The introduction of containers for oils and spillage;
• The introduction of a grease trap.
In terms of the adoption of responsible conduct, the following changes have been made:
• The introduction of a Smart LPA platform to perform internal audits that allow the company and its employees to evaluate their knowledge and raise awareness with respect to a range of topics.
Environmental and safety audits of suppliers
As previously reported in the section “Evaluation and Selection of Suppliers,” Ognibene conducts an annual audit of its suppliers on environmental safety. Through the HSE audit program, the Company carefully verifies that all suppliers meet high standards in line with the Company’s quality and safety policies.
Environmental performance monitoring
At Ognibene, we monitor company KPIs every month to evaluate environmental performance trends. KPIs (Key Performance Indicators) are a set of quantifiable measures that a company uses to evaluate performance over time.
These metrics are used to determine a company’s progress in the achievement of its strategic andoperational goals, and also to compare performance with other companies in its sector.
The KPIs monitored by Ognibene Power SpA regard in particular:
• Electric energy [kWh/pc]
• Natural gas process [Sm3/pc]
• Natural gas heat [Sm3/°C day]
• Chemicals [kg/pc]
• Waste produced (kg/1000 pcs), categorized as hazardous and non-hazardous
• Waste recovery index [%total waste]
• Water usage [m3/1000 pcs]
Every year, following the Management Review, new targets are defined on the value of the KPIs obtained, to drive the company towards the pursuit of continuous improvement.
Environmental permits
The company is subject to a Single Environmental Permit (AUA), defined by DPR 59 of March 13, 2013, which includes seven environmental permits concerning:
• Authorization to discharge industrial wastewater and runoff;
• Permit for emissions into the atmosphere in ordinary way for establishments and for installations and activities covered by the derogation (pursuant to art. 269 of Decree-Law 152/06);
• Noise assessments and assessments of new facilities and infrastructure for production, sports and recreation activities and multi-purpose commercial service stations (Article 8, paragraph 4, Law n.447/95; Article 4, paragraphs 1 and 2 of the DPR no 227/2011; Article 10, paragraph 4 of the LR no 15/2001);
• Notices on self-disposal and recovery of waste. Ognibene Power is continuously seeking solutions to enable energy savings and the production of energy from renewable sources.
Energy and emissions
As outlined in the company’s environmental policy, Ognibene Power is continuously seeking solutions to enable energy savings and the production of energy from renewable sources.
During training, each new employee is informed about best practices for reducing energy consumption, from turning off electrical equipment at the end of shifts to checking for potential compressed air leaks.
Regarding compressed air consumption, a leak detection campaign began in 2023 across various work areas. Each identified non-compliance has been mapped, planned, and resolved, resulting in a significant reduction in compressed air losses within the facility.
While internal monitoring and calculation of CO2 emissions from activities such as electricity consumption, natural gas use, and diesel fuel consumption from com-
pany vehicles have been carried out up to now, a close collaboration with an external entity began at the end of 2023 to officially calculate greenhouse gas emissions following the GHG Protocol for Scope 1 (direct) and Scope 2 (indirect) emissions.
The report, to be completed in 2024, will establish the foundation for defining energy objectives and targets for the coming years, along with the necessary activities to achieve these goals.
Additionally, a study is underway to increase the existing photovoltaic capacity.
Electricity and gas consumption are monitored monthly, both aggregated and broken down by different areas of the plant. This specification helps identify and address any abnormal consumption.
The values concerning energy procurement and consumption for the 2021-2023 three-year period are listed below, indicating whether it comes from renewable or non-renewable sources:
Energy consumption over the three-year period described experienced a gradual increase as, in the course of 2021, the project was completed for the expansion of the production plant, which then became fully operational in 2022. Furthermore, also during the year the number of plants and machines used in company production increased.
8 Source of conversion factors in GJ: for natural gas, based on NIR 2022 and CRF 2022 data (for further details, see ABI Lab, Guidelines for the Application of GRI Standards in Banking for Environmental Matters); for electricity, ‘GRI Sustainability Reporting Guidelines’ 2018, version 3.1.
Monitoring of atmospheric emissions
There are a number of emission points in the Ognibene Power SpA plant, the presence of which is necessary due to painting activities, the presence of welders and other machine tools that require adequate ventilation systems near operator workstations, the presence of parts washing machines and the need to ensure adequate air exchange throughout the plant.
Therefore, the company has internal procedures for monitoring atmospheric emissions, in order to:
• correctly and efficiently manage all sources of atmospheric emissions;
• adequately control and monitor levels of atmospheric pollution;
• evaluate the status of regulatory compliance in relation to air pollution;
• identify emergency prevention and response systems and procedures.
Furthermore, on machines with more environmentally impactful processes, the output values are also reduced thanks to specific filtering systems.
The company also has an authorization for atmospheric emissions relating to all plant emissions, and every 6-12 months it monitors emission parameters and the relative chimney flows with a view to never exceeding authorized limits.
All emissions are controlled and monitored half-yearly or annually to check the limits of VOC (volatile organic compound) solvent dusts and phosphate and other particulate materials9 that are generated.
The plant is equipped with filtration systems located before each emission chimney, so as to abate emission concentrations. In the oldest plants, for the abatement of emissions there is a centralized three-stage filtration system to abate emulsified oil mists, a system called AIRSOL OIL.
The new expansion includes a similar system for the treatment and abatement of oil mists named EMULSTOP. Also to monitor VOC (volatile organic compound) sol-
vent dusts, the company has enacted a solvent management plan to calculate the annual emissions of those substances.
Calculation of CO2 emissions according to the GHG protocol
The calculation of CO2 emissions is based on a Technical Report for the calculation of Scope 1 and Scope 2 emissions according to the GHG Protocol standard. Based on this report, the total CO2-equivalent (CO2eq) emissions recorded for Ognibene Power in 2023 amount to 4,317.37 tons of CO2-eq, of which:
• 108.44 tons CO2-eq from the company car fleet;
• 320.19 tons CO2-eq from auxiliary heating systems, such as the heating plant;
• 376.74 tons CO2-eq from refrigerants;
• 3,512 tons CO2-eq from the company’s electricity consumption.
The following graph shows the percentage impact of Ognibene Power in terms of CO2-eq for each of the Scope 1 and Scope 2 categories monitored:
9 Phosphates: Salts and esters of phosphoric acid, banned in some areas due to their eutrophication effects.
For each of these categories, the main issues contributing to the CO2 emissions have been analyzed, and potential corrective actions that Ognibene could take to reduce the measured values have been identified (see Improvement Objectives chapter).
The methodological approach used to calculate the 2023 emissions is explained below:
Direct CO2 emissions (Scope 1)
Direct emissions generated by the company’s activities are primarily related to the production process (e.g., for heating) and employee travel for work purposes. For the calculation of Scope 1, the following components are considered:
• Mobile Combustion Emissions. This category refers to transportation using company-owned or directly controlled vehicles. To obtain the total CO2-eq value, the total kilometers traveled by each vehicle from company records were calculated; subsequently, an emission factor (expressed in kg CO2-eq/km) corresponding to the type of company vehicle was identified. Multiplying each vehicle’s emission factor by the total kilometers traveled in 2023 yields the CO2-eq value for all vehicles. After summing all values, a total of 108.44 tons CO2-eq was obtained for mobile combustion emissions.
• Stationary Combustion Emissions. This category refers to the data on natural gas consumption used in production processes and for heating. Multiplying the emission factors related to the type of fuel used by the quantity consumed (SMC) yields the CO2-eq value from stationary combustion, which is 320.19 tons CO2-eq.
• Refrigerant Emissions10. This category refers to gases used in air conditioning and refrigeration systems, which have a significant impact on Global Warming Potential (GWP) due to the greenhouse effect11 and long atmospheric lifetime12. To calculate the tons of CO2-eq from these gases, the quantity of each refrigerant used by Ognibene for active systems was monitored, and their total GWP was evaluated. Multiplying the GWP of each specific gas by the quantity used, and summing all the values obtained from these multiplications, results in a total of 376.74 tons CO2-eq.
For further details on energy consumption and related conversion factors, see the Emissions Tables section in the Attachments chapter.
Indirect CO2 emissions (Scope 2)
Indirect emissions are caused by the consumption of electricity purchased from the grid. For the calculation of these emissions, the market-based method13 was used, which considers the energy mix declared by the supplier in the electricity supply contract.
Using the Ecoinvent 3.10 database, it was possible to determine the emission impact of the energy mix of Ognibene’s supplier, which is 0.352 kg CO2-eq per kWh. Multiplying the 2023 company consumption (9,977,994 kWh) by this emission factor results in a total Scope 2 emission of 3,512 tons CO2-eq.
The GHG Report, which will be completed in May 2024, has outlined a series of objectives and projects for reducing atmospheric emissions, which are summarized in the Improvement Objectives chapter.
10 Refrigerant gases used are: R407c,R134A, R410A, R32.
11 Refrigerant gases, when released into the atmosphere, trap solar heat, contributing to the global warming phenomenon. Their GWP is measured by their ability to trap heat relative to carbon dioxide (CO2), a reference gas with a GWP of 1. For example, a refrigerant gas with GWP 3000 means it has 3000 times more warming potential than CO2 per unit mass.
12 In addition to their ability to retain heat, some refrigerant gases remain in the atmosphere for decades or even centuries, continuing to contribute to global warming over a long period.
13 The market-based approach allows the presence of any guarantee of origin certificates to be considered in the calculation in the case of purchase of electricity from renewable sources, by setting the emission factor of the energy use covered by the certificate equal to 0 for the amount indicated on the guarantee of origin.
Raw materials
Ognibene Power is committed to reducing environmental impacts by considering the product life cycle to encourage the reuse and recycling of its materials.
We separate non-recyclable plastics from those that are reusable, such as PET, PE, and PVC; the latter is managed by a specialized supplier for recovery. Raw material suppliers are audited and evaluated, with preference given to those certified under the UNI EN ISO 14001 standard, in order to ensure greater attention to environmental aspects upstream in the supply chain.
The consumption of the raw materials used in the organization is shown below:
The company pays particular attention to the packaging of the products it ships. Every transport document always includes a QR code linked to a dedicated page on the company website which indicates all possible packaging present in the shipment and the proper disposal methods.
In regards of packaging management, the company is duly enrolled in the National Packaging Consortium as an “other user”.
In addition, Ognibene Power SpA is an importer of full packaging from foreign countries and has been sending to CONAI since 2000 the forms relating to self-declarations certifying that it meets the requirements and the applicable class (Form 6.8), through which it has been classified as Class C. Therefore, every quarter, Ognibene SpA sends specific duly completed forms related to imports to CONAI.
Furthermore, when feasible, with some of its customers the company uses the wording RETURNABLE PACKAGING on the packing slip, so the pallets can be returned to it once the delivery has been made.
We are committed to reducing environmental impacts
Water withdrawals and consumption
The increased use of water resources is primarily in production cycles and part washing activities, the preparation of emulsions for machine tools and their cooling. The water used, which comes from the water supply system, is constantly measured and monitored via meter readings by the company’s personnel. To check performance and promptly detect any leaks, meter readings are performed periodically everymonth and recorded in dedicated internal company documentation.
In July 2006, meters were introduced into the plant on the connections for production consumption, to make continuous monitoring even easier.
The company also has two duly authorized wells, which it constantly monitors, and every year it drafts and sends a report on its consumption to the Regional Environmental Protection Agency (ARPAE) for a verification on maximum resource withdrawal limits.
The values concerning water procurement and consumption for the 2021-2023 three-year period are listed below:
Annual water consumption has increased over the three years for several reasons:
• In the course of 2021, the expansion was completed of the production facility, which then became fully operational in 2022;
• In the course of 2021-2023, tests were performed in the R&D area which led to the use of climatic chambers that require the use of water to function;
• Also in 2022, new changing rooms equipped with showers available to employees were introduced.
The entirety of the water used is linked to surface sources in terms of both withdrawal and discharge.
For water management, a system called BEKOSPLIT has been introduced, which allows for the separation of condensate water containing mineral or synthetic oils from compressors, recovering clean water that can either be reused or safely discharged into the sewage system, as it is no longer polluted.
Within the company premises, two types of wastewater are generated:
• Industrial wastewater similar to domestic wastewater;
• Stormwater runoff.
In the first case, the industrial wastewater similar to domestic wastewater refers to condensate water generated inside the evaporative towers and the water softener, used in the company’s production process. This water is discharged into the public sewage system, through the sewer network that also collects domestic wastewater.
As for the stormwater runoff, this is generated due to the impermeabilization of an area located near the production facility, designated for employee and supplier parking, and from the downspouts on the facility itself.
To collect this water, a collection system has been set up, which, after treating the stormwater runoff in an oil
separator, will discharge the effluent into a surface water body connected to the Mancasale treatment plant.
All industrial water (spent emulsions, grinding sludge, and water from washing mechanical parts) is managed as waste and is not discharged into the water networks in any way.
Additionally, to combat the excessive consumption of plastic materials, Ognibene Power has installed a system of 13 water dispensers connected to the water network. Thanks to an efficient filtration system, these make the water drinkable and reduce the use of plastic bottles by employees within the company.
To address the increase in water resource usage, controls have also been strengthened through the introduction of new meters to identify the real sources of consumption. This was followed by targeted interventions to reduce water usage. The main one was the restoration of an evaporative tower in R&D, which limited the direct and continuous draw of water from the aqueduct. The activity carried out in the last month of 2023 should show evidence of a reduction in m3 of water drawn during 2024.
The company is also committed to setting new improvement objectives and targets each year related to the ratio between m3 of water consumed and pieces produced.
To achieve these targets, the idea was born to evaluate the purchase of an industrial evaporator to recover a large amount of clean water from the emulsion waste generated, which can be reused in various internal processes.
To date, the company is assessing the various costs and benefits that the project would entail.
3.4
Waste management and disposal
Waste management takes place based on shared company processes, which provide the operating methods for meeting all obligations relating to waste storage and reporting, including collection and transport, in compliance with regulations in force on the matter. The procedure contributes towards ensuring compliance with legal standards and specific additional requirements, as well as reducing the environmental impact of activities to a minimum during operating and administrative processes in office spaces and work sites.
Waste monitoring and performance are carried out monthly, and in case of any complaints, are regularly submitted annually within the legal deadline. The Company is also committed to proper waste management, therefore created a recycling area prepared for any accidental spills of pollutants, in which there are containment tanks and grates that allow the collection of both rainwater and any leaks.
For waste management, waste sorting is applied from the very first moment of waste production by separating and sorting the recyclables. Paper and cardboard, plastic, aluminum milk, glass, toner, and electronic materials are promptly separated to avoid mixing different wastes and make any recycling easier. Waste screening is done at the time of waste production by the person in charge of the relevant department through identification signs on the valuable waste.
The total waste generated by the company amounts to 3,129 tons for 2023, of which the majority, or 2,191 tons is non-hazardous waste, and 938 tons is hazardous waste.
Ognibene Power has installed 13 water dispensers connected to the water network to provide filtered drinking water, reducing the use of plastic bottles on the farm.
Before testing/using a new chemical product, the company ensures that the relevant Safety Data Sheet, requested from the product supplier, is available. All products undergo an evaluation, performed by a Process Engineering team on the technical and qualitative characteristics of the Product, and by an Environmental Management System (EMS) and an Occupational Health and Safety Management System (SGSSL) on the Safety and Environmental protection characteristics. The Product is accepted upon approved assessment by Process Engineering, EMS, and SGSSL.
The company always provides safety data sheets for its products, they are available online, or extracts of the
main contents of the safety data sheets are displayed at the departments concerned.
To prevent harmful spills into the ground, the company annually monitors the tightness of underground tanks containing substances of hazardous matrices by following well-defined operating instructions, which are viglied and signed by the facility manager of the plant. In addition to internal monitoring, Ognibene Power ensures that video inspections are conducted an authorized firm to check the structural condition of the pipelines and certify the proper conformation of the hydraulic seal of the channelled fluids.
The total waste produced is entrusted to outside firms, which are responsible for recycling and disposal of the total waste produced by the company. In 2023, 2,210 tons of waste were sent for recycling, while 919 tons were sent for disposal.
To reduce the amount of waste and emissions produced, the company has been sorting waste in both offices and production premises for years and raising awareness among its workers by installing monitors in the workshops displaying a visual on proper waste collection
The Company pays special attention to plastic waste management, making an additional selection for quality plastic from the rest, to deliver it as polyethylene. A major investment was made by introducing a shredder for optimal shredding of long chips, thus facilitating their management and the amount of waste.
Following the philosophy of continuous improvement, as with other environmental aspects, targets (kg/pc) and objectives are updated each year on the waste generated by the company and the quantities going for recovery or disposal.
The identity of Ognibene Power
The ECONOMIC DIMENSION 04
Development of demand and market trends in which the company operates
In 2023, overall industrial production declined. After the economic slowdown in the first half of the year, production attempted a recovery in the third quarter but recorded negative results again in the fourth quarter, closing the year with a -2.9% compared to the previous year. This worsening was also reflected in the production trends of the metalworking sector. Specifically, production in the fourth quarter increased by a modest +0.6% compared to the summer quarter but showed a year-on-year decline of 1.0% following the 2.0% drop recorded in the previous two quarters. Business activity continues to face critical challenges, primarily the ongoing conflicts with increasing geopolitical tensions, negative repercussions on supply chains, as well as high credit costs, making business operations more difficult and complex. Metalworking production volumes in 2023, in fact, decreased by an average of 0.7% compared to 2022. This decline was mitigated mainly by the production increases recorded in the sectors of Other Means of Transportation and Motor Vehicles and Trailers, which offset the negative results in other metalworking segments.
Based on the findings from our regular quarterly survey, there is a substantial weakness in production activity in the fourth quarter of 2023, with mixed signals
regarding expectations for the first quarter of 2024. Specifically, 23% of the companies surveyed reported an improvement in their order books, a decrease from 25% in the previous survey. Negative balances in current orders are particularly evident among companies with “up to 500 employees”. However, the same problem occurs in small and medium-sized enterprises.
The percentage of companies expecting stability in production levels rose to 52% (from the previous 46%), while 22% foresee a contraction, and 26% predict increases. Furthermore, 20% of companies anticipate increasing their current employment levels over the next six months, while 67% expect to keep them unchanged, and 19% foresee a reduction. Finally, the proportion of companies rating their liquidity situation as poor or very poor stands at 5%, down from 8% at the end of September.
The difficult economic phase we have been experiencing for several years now, and especially the uncertainty regarding its future evolution, is significantly affecting all economic, financial, and productive aspects of metalworking companies.
Source: Federmeccanica “169th Economic Survey” (www.federmeccanica.it)
OBJECTIVES 05 IMPROV EME NT
Ognibene is attentive to sustainability issues and is committed to contributing to the sustainable development of the country through its activities and initiatives. To achieve this, in the coming years, the company intends to adopt a plan for improving business processes in order to reduce the external impacts generated.
Sustainable Development Goal (SDG)
SDG 15: Life on Land
Target 15.1: Conserve and restore terrestrial ecosystems, particularly forests, wetlands, mountains, and arid lands.
SDG 11: Sustainable Cities and Communities
Target 11.4: Strengthen efforts to protect and safeguard the world’s cultural and natural heritage.
SDG 6: Clean Water and Sanitation
Target 6.4: Increase water use efficiency across all sectors and ensure sustainable freshwater supplies to address water scarcity.
SDG 12: Responsible Consumption and Production
Target 12.5: Reduce waste generation through prevention, reduction, recycling, and reuse.
SDG 13: Climate Action
Target 13.3: Improve education, awareness, and human and institutional capacity on climate change, mitigation, adaptation, and its impact reduction.
SDG 9: Industry, Innovation, and Infrastructure
Target 9.4: Upgrade infrastructure and make industries more sustainable by increasing resource efficiency and adopting clean technologies and environmentally sound processes.
SDG 7: Affordable and Clean Energy
Target 7.2: Significantly increase the share of renewable energy in the global energy mix.
Target 7.3: Double the global rate of improvement in energy efficiency.
SDG 12: Responsible Consumption and Production
Target 12.5: Reduce waste generation through prevention, reduction, recycling, and reuse.
Target 12.6: Encourage companies, especially large enterprises and multinational corporations, to adopt sustainable practices and integrate sustainability information into their reporting cycles.
Target 12.7: Promote sustainable public procurement practices in accordance with national policies and priorities.
SDG 9: Industry, Innovation, and Infrastructure
Target 9.1: Develop quality, reliable, sustainable, and resilient infrastructure, with a particular focus on equitable access and affordable costs for all. Cybersecurity is an integral part of resilient infrastructure.
SDG 4: Quality Education
Target 4.4: Increase the number of youth and adults with relevant skills, including technical and vocational skills, for employment, decent jobs, and entrepreneurship.
SDG 8: Decent Work and Economic Growth
Target 8.2: Achieve higher levels of economic productivity through diversification, technological improvement, and innovation.
Target 8.5: Achieve full and productive employment and decent work for all women and men, including young people and persons with disabilities, and equal pay for work of equal value.
Target 8.8: Protect labor rights and promote safe and secure working environments for all workers.
SDG 3: Good Health and Well-Being
Target 3.d: Strengthen the capacity of all countries, particularly developing countries, for early warning, risk reduction, and management of national and global health risks.
Target 3.9: By 2030, substantially reduce the number of deaths and illnesses from hazardous chemicals and air, water, and soil pollution and contamination.
SDG 8: Decent Work and Economic Growth
Target 8.8: Protect labor rights and promote safe and secure working environments for all workers.
Actions to be taken
Purchase an industrial evaporator to recover water for use in internal processes.
• Pursue Carbon Footprint (CFP) certification according to ISO 14064 standards;
• Continue periodic monitoring of greenhouse gas emissions;
• Implement a plan to reduce scope 1 and 2 emissions;
• Invest in innovative, low-environmental-impact technologies and solutions to improve energy efficiency, reduce fossil fuel use, and optimize production processes;
• Monitor electrical consumption by diversifying business units through increased energy measurement tools connected to our Rilheva system;
• Strengthen the company’s sustainability culture through awareness and training activities for employees; Purchase electricity exclusively from renewable sources; Increase the amount of self-produced energy from photovoltaic panels; Prefer suppliers that use ESG practices and machinery with specific energy-saving technologies.
• Redesign the current recycling area with more effective containment systems and new areas to facilitate waste management and collection;
• Prefer virtuous suppliers who integrate ESG practices into their business;
• Include sustainability criteria in investment assessments;
• Increase EcoVadis scores by focusing on sustainable sourcing.
Obtain ISO 27001 certification related to information security, cybersecurity, and privacy, also to increase EcoVadis scores.
Launch the Academy project by 2025.
Performance management system: performance evaluation system for all white-collar employees (align staff with company strategies); Flexible hours (applied in offices); Implement a periodic and comprehensive communication plan for employees.
• Strengthen the corporate culture on health and safety at all organizational levels;
• Continue regular monitoring of safety KPIs;
• Continue analyzing near misses with a focus on prevention;
• Ensure the continuous search for new technological solutions to reduce risks;
• Maintain effective advanced tools and organizational models for health and safety risk analysis and management in the workplace.
Join the Corporate Golden Donor project of the Italian Environmental Fund (FAI).
INDEX GRI CONTENT
Ognibene Power has used the GRI Standards (option “with reference”) as ESG performance indicators to be reported in its 2023 Sustainability Report.
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This publication is printed on recycled paper.
