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SUSTAINABILITY 2012 REPORT


SuSTAInAbILITy 2012 REPORT

Contents 2 3

Methodological note Letter to stakeholders

1. Our approach to sustainable development 6 7 8 9 9 10 11 13

The pillars on which our vision for sustainability is based Our ethical principles and values Our Code of Ethics Professional training on ethics and sustainability Promotion of human rights Our commitment towards conflict minerals Relationships with our stakeholders The first report: we have asked our clients

2. Pelliconi profile 16 18 20 21

A global company Our manufacturing plants in Italy and worldwide Our history Organisational structure

3. Our clients 24 25 26 26 26 27

The Pelliconi universe Our commitment to client satisfaction Enhanced customer service function Evaluation of customer satisfaction The new software for customers: Pelliconi Online Proofing Product research and development: a partnership with our customers

4. Our products 30 32 33 32

Responsible packaging R&D: new PVC-free closures for baby food Our portfolio Promotional products

5. Economic impacts 36 37

2012 financial performance Our suppliers

6. Environmental respect 40 41 41 42 43 44 44

Reducing environmental impact Rational use of energy to limit atmospheric emissions Metal closures and sustainability Sustainable waste management Sustainable packaging: the new "Smart Crown" caps Other environmental initiatives Intermodal transport of products

7. Our people 48 48 49 50 50 51 52 52 53 54

The value of human resources The culture of well-being The Pelliconi magazine Pelliconi Innovation Award Health and safety at work Search and selection Training Enhancing employee engagement and achievement at work The Angelo Pelliconi Laboratory Composition of staff

8. Community initiatives 58 58 59 60 60 61

Pelliconi and the community Our commitment to scientific research Our support for regional culture Concrete help for the training of young people in the region Encouraging collective well-being through sports Employees involvement in social initiatives

9. Data 64 66

Table of sustainability indicators GRI-G3 Content Index


SuSTAInAbILITy 2012 REPORT

Contents 2 3

Methodological note Letter to stakeholders

1. Our approach to sustainable development 6 7 8 9 9 10 11 13

The pillars on which our vision for sustainability is based Our ethical principles and values Our Code of Ethics Professional training on ethics and sustainability Promotion of human rights Our commitment towards conflict minerals Relationships with our stakeholders The first report: we have asked our clients

2. Pelliconi profile 16 18 20 21

A global company Our manufacturing plants in Italy and worldwide Our history Organisational structure

3. Our clients 24 25 26 26 26 27

The Pelliconi universe Our commitment to client satisfaction Enhanced customer service function Evaluation of customer satisfaction The new software for customers: Pelliconi Online Proofing Product research and development: a partnership with our customers

4. Our products 30 32 33 32

Responsible packaging R&D: new PVC-free closures for baby food Our portfolio Promotional products

5. Economic impacts 36 37

2012 financial performance Our suppliers

6. Environmental respect 40 41 41 42 43 44 44

Reducing environmental impact Rational use of energy to limit atmospheric emissions Metal closures and sustainability Sustainable waste management Sustainable packaging: the new "Smart Crown" caps Other environmental initiatives Intermodal transport of products

7. Our people 48 48 49 50 50 51 52 52 53 54

The value of human resources The culture of well-being The Pelliconi magazine Pelliconi Innovation Award Health and safety at work Search and selection Training Enhancing employee engagement and achievement at work The Angelo Pelliconi Laboratory Composition of staff

8. Community initiatives 58 58 59 60 60 61

Pelliconi and the community Our commitment to scientific research Our support for regional culture Concrete help for the training of young people in the region Encouraging collective well-being through sports Employees involvement in social initiatives

9. Data 64 66

Table of sustainability indicators GRI-G3 Content Index


Methodological note The second edition of the Pelliconi Sustainability Report, has been prepared according to the most recent Sustainability Reporting Guidelines of the Global Reporting Initiative (GRI), version 3.1. This year the report underwent further changes to become more detailed and transparent through the extension of the reporting scope, thereby increasing the number of performance indicators of the GRI standard. In comparison to last year, we added a total of 14 indicators, of which 4 are in the economic area, 1 in the environmental area and 9 in the social area which includes employment, human rights, society and products. The 2012 report confirms a B application level of the standard validated by the technical division of the Global Reporting Initiative. The report presents the main economic, environmental and social impacts to the stakeholders and allows us to place the company business in a more extensive context, indicating the relevant aspects with specific regard to the sector of closure producers and to the regional scope of reference. The subjects and qualitative and quantitative information in relation to reporting reflect the gold standard and the considerations which came up during meetings with the company's management. The information gathered from national and international industry associations (ANFIMA, EMPAC), the analysis of the best practice on sustainability reporting in the target sector and requests for information on sustainability were all taken into account. With regard to reporting on some indicators (for example those for personnel training) the results of the project promoted by ISTAT and by the CSR Manager Network Italy for the standardisation of sustainability data, presented in March 2013 were also taken into account. At the end of the report, a list of the published indicators is available, indicating where information provided for by the GRI-G3.1 can be found within the document. The data and information provided (unless otherwise stated) refer to all the companies comprising the Pelliconi group: Pelliconi & C. S.p.A., Pelliconi Abruzzo s.r.l., Pelliconi Egypt S.A.E., and Pelliconi Florida LLC. Data has been compiled and checked by several departmental managers. The section concerning the economic performance has been prepared using data from Pelliconi's consolidated financial statements which have been audited by external and independent auditors. Wherever possible, the data for the three-year period 2010-2012 has been reported as requested by the GRI standard. CO2 emissions deriving from electricity consumption have been recalculated for the whole three-year period 2010-2012 using the emission factor for Italian power stations relating to 2010 (the most recent available) and published in the ISPRA 2012 report on emission factors in the Italian electricity sector.For further information please contact: sustainability@pelliconi.com

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SuSTAInAbILITy 2012 REPORT

Letter to stakeholders We have arrived at the second edition of our sustainability report, which presents our main initiatives and performance with regards to 2012. Last year was a very positive one with regards to environmental and social responsibility. In recent years we had to face new challenges mainly imposed by the international economic crisis. Nonetheless, we continue to invest so as to ensure we strike a balance between economic growth, environmental protection and responsibility towards our employees, communities and all stakeholders convinced that this is the best way to compete on the market. In this context, 2012 has been an important year as we managed to improve the environmental sustainability of our products. This was possible thanks to the launch of large scale industrial production of new closures having low environmental impact, the so-called “Smart crown� made of steel, with a reduced thickness of 0.18 mm, which we developed in collaboration with our major clients. It is a project which has enabled us to both improve the company's competitiveness and secure our clients' support, since they are always on the lookout for innovative products, whilst at the same time promoting a reduction in our ecological footprint. Throughout the course of last year, we continued to pay special attention to the legitimate expectations of our stakeholders. Above all, the persons representing our most valued asset, confirming Pelliconi’s commitment to the dissemination of sustainability and corporate ethics. The publication of the code of ethics was particularly communicated to employees working at our production plants abroad. The aim was to promote sharing of the Company's fundamental ethical principles and values, so that all employees can share this basic element of our corporate culture. The will to share this approach to sustainable development with our main stakeholders enabled us to widely disseminate our first sustainability report amongst clients, business partners, local institutions and other stakeholders. Furthermore, we shared the report as part of a survey targeting a selection of our main customers, asking them to assess our approach to sustainability, the strengths and weaknesses, areas which need improvement and the contribution they are expecting from us as participants in their value chain. Furthermore, we confirmed our commitment to give part of our proceeds to the local community, supporting several activities for the promotion of culture, wellness through sports, as well as research and training. In the next months we shall continue updating and implementing the activities foreseen in the sustainability plan, paying particular attention to the involvement of employees and stakeholders together with the development of activities within our businesses to ensure a complete integration of sustainability at group level. We shall try to further improve logistics, focusing on inter-modal transport of goods, increasing the volume of products which is shipped or transported by rail. Marco Checchi, Chief Executive Officier

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Our approach to sustainable development The pillars on which our vision for sustainability is based Our ethical principles and values Our Code of Ethics Professional training on ethics and sustainability Promotion of human rights Our commitment towards conflict minerals Relationships with our stakeholders The first report: we have asked our clients

1


The pillars on which our vision for sustainability is based: CONDUCT OUR BUSINESS LEGALLY, WITH RESPECT AND HONESTY TOWARDS ALL OUR STAKEHOLDERS

We firmly believe that ethical and responsible business conduct will ensure the trust of our partners and success in the long term:

1.

✔ We communicate and share our values with all stakeholders ✔ We train our personnel on issues of ethics and sustainability ✔ We are committed to communicating and sharing our values for sustainability with our suppliers and business partners ✔ We preferentially seek long-term business partnerships and relationships

MANAGE OUR PERSONNEL IN A RESPONSIBLE MANNER

We are one big family and team, united in achieving our mission together:

2.

✔ We preserve jobs and employment ✔ We invest to guarantee occupational health and safety ✔ We support the well-being and satisfaction of our personnel and their families ✔ We behave properly and transparently in managing workplace relations ✔ We take action against those who break the rules

ENSURE SAFE AND EVER MORE ENVIRONMENTALLY RESPECTFUL PRODUCTS FOR OUR CLIENTS AND CONSUMERS

We work in close proximity with our business clients to achieve technological and environmental innovation:

3.

✔ We invest human and economic resources in favour of innovation for our products and processes, with special attention to environmental sustainability; ✔ We offer our clients the opportunity to choose products that are more eco-friendly, and we are completely available to collaborate on special and long-term projects to create much more sustainable products; ✔ We are equipped with specific procedures and we possess international certifications to guarantee health and safety for all products sold to our clients. ✔ We are committed to reducing the environmental impact arising from our production processes and from transportation of raw materials and products

SUPPORT SOCIAL AND CULTURAL DEVELOPMENT FOR OUR LOCAL COMMUNITIES

We invest a share of our profits in favour of our regional communities:

✔ We sponsor and actively participate in local projects aimed at promoting social and cultural activities, scientific research and in support of the physical well-being of the regional community in which we operate; ✔ We involve our employees in planning and developing activities in support of the community, giving priority to issues and projects suggested by our personnel or in support of the associations of which they are members.

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4.


SuSTAInAbILITy 2012 REPORT

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Our ethical principles and values HONESTY AND INTEGRITY Respect for rules and laws, loyalty and a sense of responsibility towards clients, suppliers and workers are strongly rooted in our Group. We do exactly what we promise, in full respect of the regulations in force.

RESPECT AND PROFESSIONALISM

In carrying out our daily work, we are inspired by our fundamental principles

Our extensive knowledge of the sector, full range of skills and sincerity with all partners allowed us to earn our clients', suppliers' and other stakeholders' respect and trust. We will continue to work to deserve their respect and trust.

ENTHUSIASM AND PASSION We take on all that we do with enthusiasm and team spirit, in the belief that the best results are only obtained with the utmost passion. Passion is the key to everything we do.

PRECISION Our results show that we know how to promptly and duly meet our obligations.

RESPECT We are committed to protecting cultural and gender diversity, fully respecting our personnel's dignity and prohibiting all forms of violence and harassment. In this regard, we support the initiatives aiming at obtaining the well-being conditions at the workplace.

FAIRNESS We offer all employees equal opportunities to work, in full respect of the law, in such a way that permits each and every one of them to develop their own personal potential and to benefit from equitable contract terms and salary compensation, based exclusively on criteria of merit and competence, without any form of discrimination. We are just as careful in managing business relationships with suppliers and business partners.

COMMITMENT TO SUSTAINABILITY We are committed to work actively towards sustainability, with a view to pursuing economic development that is compatible with environmental, ethical and social balance. We safeguard employment conditions to provide a safe working environment and the best production practices for safeguarding the employee's physical and psychological well-being. We work actively for eco-sustainable development, to preserve the quality and quantity of the non-renewable natural reserves and reduce the environmental impact of our business activities, in order to strike a balance between economic development and environment for future generations. We are committed to observing the needs of the regions where we operate, participating in the civic growth and general well-being of the communities in which we operate through listening to our stakeholders, involving them and collaborating with them.

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Our Code of Ethics In June 2012, we published our new

We have strived to disseminate the content of the new code of ethics among the whole company

Code of Ethics, expressing the commitments and responsibilities that the company and whoever works with Pelliconi assume when carrying out all company activities. The Code of Ethics was developed to ensure that our fundamental ethical principles and values are clearly defined and serve as the cornerstone of corporate culture, and also to provide a standard of

behaviour for all personnel in the conduct of their work. The ethical principles and values and the resulting behavioural rules constitute a point of reference and a guide to be followed in the relationship with the stakeholders, and also provide valuable assistance for identifying and resolving unclear and controversial situations. Between September 2012 and June 2013 we disseminated the Code of Ethics using several means of communication: • it was published in Italian and English on our company's website • it was sent by e-mail to employees and clients • we dedicated a feature on the code of ethics in the first issue of our corporate publication titled "Pelliconi Magazine" We also dedicated a training module on the Code of Ethics at our training centre, the “Laboratorio Angelo Pelliconi”, in order to disseminate its content and raise awareness among the whole company on the principles and rules contained in the Code of Ethics, to make the managerial team aware of their responsibility to disseminate the Code to their staff, and to encourage employees to address problems of an ethical nature within the context of the company operation. The same approach was taken in 2013 with regard to our companies in Egypt and in Florida which provided a training session to all employees dedicated to the integration of sustainability and the code of ethics within all the group's companies.

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Professional training on ethics and sustainability

The training module on sustainability of the Laboratorio Angelo Pelliconi has also landed in Cairo and Orlando

As of the last six months of 2010, through the launch of the activities of the Laboratorio Angelo Pelliconi, within the training module at Master's level, we also introduced a specific module on Ethics and Social Responsibility (to date, it has been provided to over 25% of the whole company). Amongst the internal lecturers, there was also the CEO who participated directly. This specific training module on Sustainability was offered again in

2013 to our operations outside of Italy, holding classroom sessions for all employees on the most relevant subject for the group in relation to sustainability, on the importance of reporting through the company's annual report and on the characteristics

of

the

adopted

GRI-G3

international standard and the economic, social and environmental performance indicators.

Promotion of Human Rights We are committed to promoting the shared ethical values of the international community in the conduct of our company business, in particular drawing inspiration from international documents such as the Universal Declaration of Human Rights, the OECD guidelines for multinational companies, and the ILO Tripartite declaration on principles for multinational companies. Our attention is particularly focused on aspects involving discrimination, guarantees of equal opportunity for our employees and occupational safety. Our intention is to involve our suppliers as well to share the same values with them. As of this year we are paying particular attention to the fact that the suppliers of goods and services are aware and share the principles and values referred to in our code of ethics.

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Our commitment towards Conflict Minerals The monitoring of human rights in the supply chain has also been part of our specific work carried out in 2012 on the supply of raw materials deriving from the Democratic Republic of the Congo and from bordering countries, in which a series of armed conflicts raises great concern relating to the breach of human rights in mineral extraction, processing and trade. On the 22nd August 2012, the American Parliament approved the “Dodd-Frank Wall-Street Reform and Consumer Protection Act” and the US Securities and Exchange Commission issued as a rule the obligation for American companies using minerals at risk (defined as “conflict minerals”) for the manufacture of their own products to carry out checks in their own supply chain. Among the minerals concerned were Cassiterite (Tin), Wolframite (Tungsten), Columbite-tantalite (commonly referred to as “Coltan”, for Niobium and Tantalium) and Gold, all of which are used as key ingredients for a vast range of industrial activities, especially in electronics (mobile and computer components) but also in the production of tin, which may be used in the electrolytic covering process of types of laminated steel (production of Tinplate). In response to some American clients' requests, we started working by launching an inquiry directed at our Tinplate suppliers to go into detail in the subject of “conflict minerals” and confirm that no tin deriving from Cassiterite extracted in conflict areas is used in their production processes. Some of our customers and suppliers are listed on Wall Street, and therefore are obliged to verify, certify and communicate through a specific report to the American Security Exchange Commission that they do not use “conflict minerals”: these producers have already publicly expressed their disapproval of controversial minerals. Their stance is accessible on the companies' websites and, in any case, the fact that they are listed on Wall Street is already in itself a reasonable guarantee of a lack of use of raw materials originating from conflict areas.

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SuSTAInAbILITy 2012 REPORT

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The rest of our suppliers declared in a transparent way that they are not supplied with “conflict minerals� in accordance with their own company policy or in compliance with the fact that they purchase raw materials only from their internal market.

Relationships with our stakeholders We are aware that our success on the market cannot be achieved without attention being paid to the relationship with all our stakeholders, to create sound relationships which promote the building of consensus and mutual trust. For each working activity which has an impact on one or more categories of our stakeholders, we always try to identify beforehand potential critical situations which may arise at each stage of the activity, defining with them common principles for greater integration of commitments, and for fully sharing objectives and results. Our stakeholders represent the main target of our corporate social responsibilities initiatives and at the same time they are also our most valued partners in building projects and paths fully in line and consistent with our core business and with the greatest challenges which are typical of our sector. The aim is to create alliances that bring about a competitive advantage and shared and common benefits in the area of sustainability. The table below gives a non-exhaustive but representative overview of the type of relationships we have with the several categories of stake-

The objective is to create partnerships which generate a competitive advantage and shared benefits in the area of sustainability

holders together with the main dialogue, interaction and involvement instruments which are typical of them.

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MAIn CATEGORIES OF STAKEHOLDERS

EMPLOYEES

482 employees as of June 2013, of whom 387 work in Italy, 48 in Egypt, 27 in the United States and 20 in the several business offices

In WHAT WAy WE InTERACT, WE LISTEn TO THEM AnD InVOLVE THEM Internal communication tools (newsletters, intranet, mailing); periodical assessment of the employee engagement, internal and external events dedicated to the employees. Business meetings and management committees.

Over 600 national and international clients in the beverages sector

Periodical satisfaction surveys; Visits to our production plants. Participation in internal and external events organised by clients. Continued relationships with our business consultants staff, and with other corporate functions: logistics, quality, technical division, etc.

We have about 30 main suppliers, both national and international; product suppliers: steel, aluminium, inks and coatings, plastic compounds. Other service suppliers: transport and logistics

Daily relationships with the purchasing management and with the logistics, quality and technical division corporate function and with all the other managerial roles according to the activities provided. Dialogue with the main associations representing the suppliers through the ANFIMA-EMPAC network.

Municipalities, Supervisory authorities (health, safety and fire prevention), region (Emilia Romagna, Abruzzo, the Florida State and local authorities of ElObour and Cairo)

Meetings and visits to the production plants to obtain various authorisations for the operation of the productive activities with regard to the regulations in force in the various relevant fields (e.g., corporate articles of association, registration of companies with the Chambers of Commerce or equivalent, authorisation for the operation of the productive activities, fire safety authorisation, environmental authorisations (e.g. AIA), inspections to check compliance with regulations in the various relevant fields (e.g. environment safety, ...), presentations of projects to the institutions

ANFIMA, Confindustria, ER-Amiat, EMPAC

Periodic meetings, preparation and sharing of best practices, participation in tasks within technical and representative committees

National and international banks that finance the group's main investments

Meetings with the Top corporate management

Associations for the promotion of activities in the social field : AVIS, Fanep, Fondazione Aldini Valeriani, Museo del Patrimonio Industriale, sports and cultural associations

Sponsorships, acts of generosity, assignment of goods or services, partnership projects, training and internships within the company

TRADE UNIONS

FIOM-CGIL, CISL and UIL

Collective and regional negotiations. Meetings with corporate trade union representatives.

SCHOOLS AND UNIVERSITIES

The European House – Ambrosetti, University and public and private research institutes; schools

Development of partnership projects, economic support for research, training and support for research and development of products and materials; corporate testimonials at academic institutes; guided tours of the production plants for students attending technical institutes

Deloitte, Det Norske Veritas, AIB International

Third party audit, validation and certification of documentation and reporting within the administrative, economic-financial, sustainability, and regulated management systems framework

CLIENTS

SUPPLIERS

LOCAL INSTITUTIONS

TRADE ASSOCIATIONS FINANCIAL INSTITUTIONS

NON PROFIT DIMENSION

CERTIFYING AGENCY

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OuR STRuCTuRE


SuSTAInAbILITy 2012 REPORT

| OuR APPROACH TO SuSTAInAbLE DEVELOPMEnT

The first report: we have asked our clients When we published our first sustainability report in 2012, we wanted to involve some of our international clients' sustainability and purchasing managers, with a view to collecting suggestions and identifying margins of improvement in relation to the thoroughness of the information provided, and the consistency and effectiveness of the business operations carried out, in comparison to their expectations. We therefore sent a questionnaire to a restricted group of multinational companies from the beverage sector so that they could provide us with their impressions and feedback on 4 aspects in particular: • our approach to sustainability • the strengths and weaknesses of our 2012 report • the areas in which we could improve • sustainability topics for which they expect a greater contribution from their supply chain In general, those interviewed gave positive feedback regarding our approach to sustainability, and also with regard to economic, social and environmental reporting, valuing above all the choice of having selected from the very first year the GRI-G3 international standard, a high level of completion and transparency, and the fact that the level of application has been validated by the technical division of the Global Reporting Initiative, the organisation that originally developed the guidelines. From the point of view of the contribution we can make to our clients' sustainability, the majority agree that using a smaller quantity of raw materials is the way forward to positively contribute to their finished products' sustainability, which will indirectly have a positive impact on atmospheric emissions. Another subject which many clients consider important is a reduction of the impact due to transporting our products. In particular, many clients appreciate the value in using intermodal transport rather than road transport, which brings small improvements in terms of CO2 (and other atmospheric) emissions to the logistical process.

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Pelliconi profile A global company Our manufacturing plants in Italy and worldwide Our history Organisational structure

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A global company We are one of the world’s leading manufacturers of metal closures for the beverages sector. Our production focuses on bottle closures, including metal crown caps (including twist-off crowns), threaded aluminium caps, aluminium “pull-ring” (Maxi-P26) caps, and screw-on plastic caps. Our bottle closures are mainly marketed to the beverages sector, but innovative closures for food applications are also at an advanced stage of development and studies are being carried out on other specific products for the pharmaceuticals and personal care sectors. Our main figures for 2012 include a turnover of about eUr 140 million , an eBITdA of eUr 8.2 million , with a production of over 26.5 billion closures exported to over 100 nations worldwide. Our group currently provides direct employment for over 500 employees, working in four production plants on three continents: in Italy: in Ozzano, near Bologna (headquarters) and in Atessa in the province of chieti, in egypt: in el-Obour, near cairo and in the United States in Orlando, florida. To better respond to client needs, and to ensure a more active commercial presence, we have commercial offices in strategic european nations: Pelliconi UK ltd, near london, Pelliconi france SArl in Mardeuil (in the champagne region), Pelliconi deut-

Stati Uniti

schland GmbH in Karlsfeld in Bavaria, Pelliconi russia

PellIcOnI flOrIdA, llc

llc in Saint Petersburg and more recently the Pelliconi Turkey sales office in Istanbul. The Pelliconi sales team directly operates in our markets in Africa, the Middle and far east and the Pacific region. We serve over 600 clients worldwide, including major beverage sector companies such as ABInBev, calsberg, castel, coca cola, danone, diageo, Heineken, nestlè Waters, Pepsi cola, SABMiller, etc.

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SUSTAINABILITY 2012 REPORT

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UK PellIcOnI UK lTd

Francia PellIcOnI frAnce SArl

Russia PellIcOnI rUSSIA llc

Gemania PellIcOnI deUTScHlAnd GMBH

Turchia lIAISOn OffIce

Italia PellIcOnI & c. S.P.A. PellIcOnI ABrUzzO S.r.l.

Egitto PellIcOnI fOr clOSUreS MAnUfAcTUrInG (PellIcOnI eGyPT) SAe

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14_21_Pelliconi_2012_uk_Layout 1 03/09/13 18.39 Pagina 18

Our manufacturing plants in Italy and worldwide Pelliconi & c. S.P.A. – ozzAno dell’emiliA (bolognA) heAdquArterS And originAl Pelliconi mAnufActuring PlAnt Products crown caps in metal 26mm Aluminium closures

Annual Capacity 6 billion pieces 2.8 billion pieces

Pelliconi Abruzzo S.r.l. – AteSSA (chieti) SituAted At the heArt of the VAl di SAngro induStriAl zone, it iS the world'S biggeSt PlAnt for crown cAPS mAnufActuring Products

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Annual capacity

26mm crown caps

22 billion pieces

29mm crown caps

200 million pieces


SUSTAINABILITY 2012 REPORT

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Pelliconi egyPt SAe – el obour city (cAiro - egyPt) Products 26mm crown caps

Annual capacity 3 billion pieces

Pelliconi floridA llc - orlAndo (floridA - uSA) Products Plastic caps (single piece HdPe) 26mm crown caps

Annual capacity 1.8 billion pieces 3 billion pieces

our miSSion “We are a dynamic and reliable organisation working since 1939 to be the partner and reference of choice for the bottling and packaging industry at a global level. Thanks to our creativity, know-how and team spirit we are able to satisfy the needs of our customers whilst creating shared value. Our deep passion for innovation and quality, our proximity to our customers, and our respect at all times for safety, for the environment and for our employees are the keys to our success.”

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Our history Our company was founded in Bologna in 1939, thanks to the passion and intuition of Angelo Pelliconi who, at the beginning of the Second World War, invented a way of reusing metal military ration containers to manufacture metal bottle caps - we have been recycling since 1939. from the early pioneering days, Pelliconi closures were very successful and, due to a growing increase in demand, there was a need for machinery to enable the production of caps in industrial quantities. This quest led Angelo Pelliconi to establish a strong working relationship, destined to become even stronger in the following years, with a group of young mechanics in nearby Imola, who would later go on to form SAcMI. With a history of increases in production capacity and demand from a rapidly growing market, we eventually shifted our manufacturing base to a plant in Ozzano dell’emilia, near Bologna, where we still have our headquarters and one of our main production plants. Until the late 1980s, all of our production was based in the Ozzano dell’emilia factory and our production output of some 4 billion pieces per year was primarily destined for Italian customers, but with ever growing export sales to europe and Africa. At the beginning of the 1990s, Pelliconi Abruzzo s.r.l. was established, with headquarters at Atessa, at the heart of the Val di Sangro industrial zone in the province of chieti. Over the years, the company invested heavily in the expansion of Pelliconi Abruzzo srl, to the point where it currently has the largest manufacturing capacity for crown caps in the world; Pelliconi Abruzzo srl has contributed significantly to increasing our productive capacity to the current levels of over 22 billion closures per year. We have continued to grow and expand, following a targeted programme of internationalisation. In 2008, this strategy led us to found Pelliconi egypt SAe, in partnership with an egyptian entrepreneur. This new plant situated near cairo has an installed capacity of about 3 billion crown caps per year, intended to supply the egyptian market, Middle eastern countries and the African continent, with particular marketing advantages for countries within the cOMeSA zone. continuing our internationalisation process, at the beginning of 2010 Pelliconi florida llc was formed, with headquarters in Orlando, florida, USA. This site initially produced only plastic closures and subsequently, in order to increase our presence in this strategic market which we formerly served from Italy, in 2011 we also started producing crown caps, with a current annual installed capacity of about 3 billion pieces. Born as a small company operating on the local market, with a successful entrepreneurial vision and a will to pursue ever more ambitious results, we are now world leaders in the production of many types of bottling closures, with partners that are major international players in the beverage sector.

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SUSTAINABILITY 2012 REPORT

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Organisational structure AdMInISTrATIVe STrUcTUre And cOrPOrATe BOdIeS Pelliconi & c. S.p.A. is the parent company, which apart from carrying out its own production activities, holds the shares of the other companies in the Pelliconi Group. The company has a traditional administrative structure. The general Assembly of the Partners, which is the body of shareholders called together for important decisions in corporate life, including the election and dismissal of the Board of directors and the election of the Audit committee and for approval of financial statements. The Board of Directors is responsible for the management of the company and the implementation of corporate objectives. All Pelliconi & c. S.p.A. partners are also members of the Board of directors. Mr. franco Gnudi is the President and legal representative and Mr. Marco checchi is the chief executive Officer. The Audit committee is the company's oversight body, elected by the General Assembly. It monitors compliance with the law and statute, with "principles of good management" and the adequacy of the organisational structures and administrative and accounting procedures adopted by the company. The Group's organisational model foresees an overall corporate administrative level, headed by the General Manager who reports to the ceO, and all other corporate functions with responsibilities at the Group level, even if their roles vary in the various subsidiary companies. There is an investment committee, chaired by the ceO, and of which are also members the Operations and commercial directors, the Administrative and financial director, the controller, the Human resources Manager and the Business development Manager, responsible for discussing, evaluating and researching the interdepartmental issues related to new investments which are either at the planning stage or already in place. There is a management committee, with managers from different areas of the company, responsible for discussing, analysing and informing the various participants about the Group's financial and economic results as well as about the state of advancement of the various projects and initiatives developed at the Group level.

cHIef eXecUTIVe OffIcer

GenerAl MAnAGer

cOnTrOller

BUSIneSS deVelOPMenT & PlASTIc BUSIneSS dIrecTOr

HUMAn reSOUrceS

AdMInISTrATIOn & fInAncIAl dIrecTOr cOMMercIAl dIrecTOr

dIrecTOr Of OPerATIOnS

PUrcHASInG dIrecTOr

IcT

SUSTAInABIlITy MAnAGer

QUAlITy dIrecTOr

PlAnT MAnAGer Pelliconi & c. S.p.A

PlAnT MAnAGer Pelliconi Abruzzo S.r.l

PreSIdenT Pelliconi florida llc

GenerAl MAnAGer Pelliconi egypt SAe

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Our clients The Pelliconi universe Our commitment to client satisfaction Enhanced customer service function Evaluation of customer satisfaction The new software for customers: Pelliconi Online Proofing Product research and development: a partnership with our customers

3


The Pelliconi universe We now serve over 600 clients, including major international players in the beverage sector, with bottling plants and offices situated around the world. Over the course of the years we have diversified and enriched our product portfolio, offering our clients a complete range of products and

Pelliconi, an Italian Company working with major brands in the global beverage sector

services to cover a variety of bottling solutions. In 2012, our total production at the group level exceeded 26.5 billion closures of various types, with further growth expected in the coming years. This result has been made possible by investing in research and development, not only with regard to new products but also with regard to new technologies, offering our clients reliable partnerships seeking long-term collaborations, and following the path towards internationalisation with determination, to get ever closer to our clients and focus more to fulfil their needs.

GUINNESS

FOSTER’S

BRAUEREI RAPP

PEPSICO

BITBURGER

COCACOLA

MAHOU SAN MIGUEL

CAMPARI

AB-INBEV

COORS

BRASSERIES KRONENBOURG

BACARDI

BALTIKA BREWERIES

CASTEL BEER

MILLER COORS

KROMBACHER

MOLSON COORS

CARLSBERG

BAVARIA

NESTLÉ WATERS

HEINEKEN

SABMILLER

BIRRA PERONI

DANONE

PAULANER

SCHWEPPES

WARSTEINER

CONSERVE ITALIA

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SUSTAINABILITY 2012 REPORT

| OUR CLIENTS

Our commitment to client satisfaction We manage our client relationships through a team of commercial representatives who operate in several geographical areas around the world as truly specialised consultants. To pursue our objective of client proximity, we have established specific sales offices to address strategic market areas such as in Germany, France, the UK, Russia and a local marketing presence in the Philippines, to address the South-East Asian and Pacific markets. In 2013 we opened a representation office in Istanbul with the objective of developing the Pelliconi business in the Turkish and Middle East market. In addition to this ever more widespread regional presence, we have also activated online communications channels, such as our new company website that enables much more interaction with our customers. We are constantly in touch and maintain a continuous relationship with our clients through a series of regular meetings at their own facilities and our plants, through our qualified resource group working in the Internal Sales, Customer Service and Customer Assistance departments. • quality, safety and reliability of our products and services; • a wide range of products suitable for the various needs of the marketplace; • unmatched know-how in the bottling sector, allowing us to provide a tailor-made advisory service for choosing the products which are the most suitable to meet our clients' needs, and also to be available to develop individual solutions; • a substantial production capacity, allowing us to successfully address both continuous demand for large volumes through the peak (summer) seasons and emergency requests for large quantities of products outside of standard production; • our desire to be closer to our clients, also geographically, has led us to establish new business offices and production plants in markets previously served by the parent company Over the years we have demonstrated our ability to fully understand our clients' practical needs and to develop tailor-made offerings suitable for specific applications, delivering the product according to the design specifications and within the established deadlines, whilst maintaining excellent post-sales relationships.

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Enhanced customer service Quality and response time-frames, precision and reliability in relation to the service offered to clients in a dynamic and competitive market such as ours play an ever important role in ensuring our company's success. Promptness and professionalism in resolving issues, very good knowledge of products, regulations and specific market requirements, together with our ability to listen are fundamental aspects to ensure our clients' satisfaction. With this in mind, in the first months of 2013 our customer service has been further reinforced, and it will work in close contact with the marketing department with a view to further improve the response level for requests for information and customer support, and to complement on-site technical assistance.

Evaluation of client satisfaction In 2012, we carried out an evaluation of customer satisfaction to analyse our clients’ satisfaction and receive their invaluable suggestions for improving our products and services.The results showed positive levels of client satisfaction in all the areas evaluated. Clients awarded our professionalism, rapidity in providing answers and ability to meet the demand even in emergency situations with the maximum possible scores.

The new Software for Customers: Pelliconi Online Proofing A project for reinforcing interaction with clients and making it even more active

Our clients' satisfaction is at the heart of our business, which is why the Pelliconi Online Proofing Software has been developed as of this year for the approval of the products' graphic design, dedicated to Pelliconi clients. The software provides for a reserved area for companies which managers have access to, in order to interactively manage the graphic design in real-time. The new programme allows for close coordination between our pre-press department and clients, thanks to an intuitive

26


SUSTAINABILITY 2012 REPORT

| OUR CLIENTS

technology available online by means of a standard browser. Clients may observe the evolution of the products' graphic design in 2D and 3D, write down amendments to be made or change colours directly on the sketch and compare several designs on the same screen. The models may be exported as videos, images and interactive images, facilitating communication activities and decision-making processes. The Pelliconi Online Proofing Software reduces approval time-frames, facilitates sharing of information and reduces the margin of error as well as the cost of graphic models. At the end of the design stage, a summary document is issued, allowing greater control of the approval process.

Product research and development: a client partnership relationship Since our customer is our central focus, we are always willing to consider major investments in capital and research for the development of new markets and innovative products. Such investments have led us, among other things, to establish new production plants in areas where until that time the market had lacked local production, but was served from plants in Italy, and to launch the industrial production of a new type of closures in Italy, such as the new MaxiP-26 closure, which has been a great commercial success and

We are always willing to assess projects in partnership with our clients in order to jointly plan innovative products which are ever more eco-compatible

which was scarcely used in Europe until only a few years ago.

27


Our products Responsible packaging R&D: new PVC-free closures for baby food Our portfolio Promotional products

4


Responsible packaging Bottle closures are an important component of beverage packaging, and apart from ensuring the protection and preservation of beverages, they also play an important role in our clients’ marketing strategies. A new cap or closure can give a product a competitive advantage in terms of appeal to the consumer, cost reductions and improved sustainability. Our portfolio includes products that are competitive in every one of these aspects: Maxi-P26 caps, with their innovative “pull-ring” opening, “smart crown” caps made of reduced thickness metal, and the complete range of PVC-free closure products and several technical solutions for promotional products. Our plastic and/or metal closures are designed to: • contribute to containing the food product (beverage) in a specified, controlled environment, suitable for preservation and distribution to the consumer (bottle); • protect the beverage from the external environment, preserving its constituent, nutritional and organoleptic qualities until it is consumed; • guarantee the safety of the product through its entire life, from production to distribution, until final consumption; • provide the client's brand with logos and colours that identify with the particular bottled beverage. To continue guaranteeing product safety and quality to all our clients and end consumers, we require our facilities to progressively subscribe to ever more demanding international standards for quality, food safety, environment, and regulations regulating products coming in contact with food. In addition to the HACCP self-monitoring system for the sanitary hygienic risk prevention (incorporated since the very beginning in the Quality Management Systems under ISO 9001), in 2012 we successfully implemented food safety management systems in the Cairo and Florida facilities. Other system certifications with regard to food safety and environmental management are still being defined, and they are expected to be completed in 2013.

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SUSTAINABILITY 2012 REPORT

Standard

Certified facilities

ISO 9001

Subject

Certifying agency

| OUR PRODUCTS

Accreditation body of the certifying agency

Pelliconi & C SpAOzzano (BO) Italy

(Sincert)

Pelliconi Abruzzo srlAtessa (CH) Italy

Accredia

Pelliconi Egypt SAECairo-Egypt

Quality management system

DNV

Self-monitoring system for risk analysis and prevention with regards to contamination of food products.

System included in ISO 9001 certified quality system

GMP standard for the primary packaging for the pharmaceutical sector

DNV

Accredia

DNV

Accredia

RVA

Pelliconi Florida LLCOrlando (FL)-USA Pelliconi & C SpAOzzano (BO) Italy Pelliconi Abruzzo srlAtessa (CH) Italy

HACCP

Pelliconi Egypt SAE-Cairo-Egypt Pelliconi Florida LLCOrlando (FL)-USA

ISO 15378

ISO 14001

Pelliconi & C SpAOzzano (BO) Italy* (Limited to ROPP aluminium caps) Pelliconi & C SpA-Ozzano (BO) Italy (expected by 2013) Pelliconi Abruzzo srl-Atessa (CH) Italy

BRC-IoP

Pelliconi & C SpA-Ozzano (BO) Italy (expected by 2013) Pelliconi Abruzzo srl-Atessa (CH) Italy

FSSC 22.000

AIB

Environmental management system

Pelliconi Egypt SAECairo-Egypt

Pelliconi Florida LLCOrlando (FL)-USA

Accredia DNV BRC Food safety management system for sanitary food packaging manufacture

DNV

FSSC

AIB International

AIB International

31


R&D: new PVC-free closures for baby food Amongst several active innovation programmes, we are actively developing new technologies for metal closure production with PVC-free seals to be applied on baby food. We were among the first manufacturers to develop crown caps with PVC-free seals at the beginning of the 1990s and we are striving to guide the food closures market in this direction, in collaboration with our suppliers and partners. This change is driven by the food industry, consumers, producers and consumer associations, who are not satisfied by current PVC technologies, both for environmental and food safety reasons. PVC is considered by some as an unwelcome substance in urban waste management, since its chlorine content may contribute to dioxin formation during incinerating processes. The major concerns are in any case related to the possible health impact caused by the additives used to soften PVC and to make it suitable as a hermetic seal: these are plasticizers and, if used, also foaming agents. The most significant developments which we brought about ourselves were those relating to new technologies for varnishing, for the application of seals and new PVC-free plastic materials used for seals (ProvalinÂŽ, developed in collaboration with ActegaDS). We have now reached an advanced level of industrial experimentation and the validity of new technologies is confirmed since the facts speak for themselves: the new closures guarantee a much lower amount of migration in foodstuffs, especially in food which contain fats, and have a smaller environmental impact once they are introduced in waste management processes.

Promotional products With interior ink jet printing Promotional closures with individual ink-jet printed codes on the interior of the metal shell, visible through the transparent liner – perfect for Internet, SMS and other contests requiring individual identification (8 to 10 character combinations of letters and numbers).

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With interior laser printing Promotional closures with laser printing on the interior of the metal shell, visible through the transparent liner – perfect for contests with advanced and mixed graphics, complex messages and other combinations.

Promotional closures with interior printing Closures with offset printing on the interior, also in different colours, visible through the transparent liner.


SUSTAINABILITY 2012 REPORT

Our portfolio Crown corks 26mm: production capacity 34 billion/yr • Pry off – PVC and PVC free • Twist PVC and PVC free

Lightweight 1-piece Savalas II plastic caps: production capacity 1,8 billion/yr • HDPE

Embossed liners Ideal for collecting a limited series of contest characters or to include a trademark brand in the liner.

| OUR PRODUCTS

MaxiP - 26: production capacity 1,6 billion/yr • Alluminio PVCfree

Aluminium caps (ROPP): production capacity 1,2 billion/yr • Plastisol • PVC free

Crown corks 29mm: production capacity 200 million/yr • Alluminium • Steel

With removable liner Recommended for contests where a promotional message is printed on the inside of the metal shell and can be seen only by removing the liner.

With QR code QR codes are widely used marketing information systems, legible using mobile phone code-reading apps (mobile tagging). They permit much more content than traditional bar codes, including entire texts, geographic coordinates, URLs, etc.

33


Economic impacts 2012 financial performance Our suppliers

5


2012 financial performance Pelliconi Group’s strategic initiatives over recent financial years focus on and enlarge our core business, particularly through broadening the range of products. Thanks to these initiatives, Pelliconi Group has, during the financial year 2012, achieved an additional important step toward a more balanced sales mix among the different products in the portfolio. The results validate the strategic choices made in previous years that have allowed the Group to further increase its revenues for sales primarily to EU countries. The operating result of the Group in the year 2012 is consistent with what was achieved in the previous year and from a financial point of view important targets for the reduction of the net financial position were achieved. The cash flow generated in the financial year has allowed the Group to support the investment activity of the period, to repay the instalments of the medium to long term debt and to also decrease the shortterm indebtedness with respect to the banking system. The market has proved to appreciate the willingness and the efforts of the Group, acknowledging its ability to be always attentive to meet the demands of the customers and ready to follow them in the various projects.

ECONOMIC PERFORMANCE 2010

2011

2012

Directly generated economic value

126.359

128.454

134.511

Revenues

126.359

128.454

134.511

Distributed economic value:

122.941

123.912

129.256

Operating costs

99.231

100.664

104.724

Employee salaries and benefits

18.349

19.837

20.519

Payments to capital providers

2.269

2.036

2.229

Payments to Public Administration

3.047

1.294

1.688

27

58

83

Community investments

36


SUSTAINABILITY 2012 REPORT

| ECONOMIC IMPACTS

Our suppliers In our relations with suppliers, we are committed to implementing

We are ready to seek out and evaluate potential partnerships with our suppliers on sustainability projects in areas of shared interest

proper, timely and transparent practices in exchanging information and managing business relations, while seeking professionalism and commitment in sharing the principles and values referred to in our Code of Ethics. In discussions relating to material supply, tenders for goods and/or services and in collaborations with external partners (consultants, sales agents, etc.): • we follow our internal procedures for selecting and managing suppliers, without excluding any potential company qualified to compete. • at the selection stage, we adopt objective criteria for supplier evaluation, under transparent and declared procedures • we periodically select suppliers and conduct checks on them, constantly ensuring that they are able to meet our requirements as well as the needs of both our customers and the consumers.

• we communicate and share our ethical principles and values, including the stipulation of our requirements in contract documents. To produce our closures we obtain supplies of steel, aluminium, plastic, coatings and ink from the most qualified producers, which are often large multinationals that employ state-of-the-art technologies and serve as a reference point for our specific sector. Most of them have adopted their own code of ethics for business conduct and implemented management systems for occupational and environmental safety (OHSAS 18001 and ISO 14001) that are externally supervised and certified by independent and accredited agencies. The table hereunder reports the total percentage of the purchases made from suppliers falling under different product categories having a code of ethics for business conduct and an environmental management system, externally certified under the ISO 14001 standard and external certification on occupational safety, under OHSAS 18001 standard.

TOTAL VOLUME OF PURCHASES IN 2012 FROM SUPPLIERS WHO ADOPTED THEIR OWN CODE OF ETHICS AND AN EXTERNALLY CERTIFIED ENVIRONMENTAL AND OCCUPATIONAL SAFETY MANAGEMENT SYSTEM ISO 14001

OHSAS 18001

CODE OF ETHICS

82%

81%

82%

100%

100%

100%

Paint and ink suppliers

51%

51%

51%

Plastic compound suppliers

97%

97%

100%

Steel suppliers Aluminium suppliers

37


Environmental respect Reducing environmental impact Rational use of energy to limit atmospheric emissions Metal closures and sustainability Sustainable waste management Sustainable packaging: the new "Smart Crown" caps Other environmental initiatives Intermodal transport of products

6


Reducing the environmental impact The environment represents for us a heritage to be respected and preserved for present and future generations. This is why we undertake responsible management of natural resources, energy and waste, to gradually improve our results through the use of new technologies which are ever more

We involve, motivate and make our staff aware of the positive impact that each and every one of them can have to reduce our business' environmental impacts

efficient and have a lower environmental impact, continuous improvement in production processes to minimise all forms of inefficiency and waste, research and development of new products and materials that are ever more ecological, and rationalisation of logistics in relation to the transportation of our products and raw materials which we get from suppliers. The main sources of environmental impact from our production cycle are: • energy consumption (methane and electricity); • VOS emissions (solvents in the atmosphere); • NOx emissions (products of combustion) • CO2 emissions • consumption of raw materials deriving from non-renewable sources (particularly: steel, aluminium, plastic and painting products); • waste; • Indirect emissions from transportation of products In contrast, cap and closure production does not have a negative

impact on biodiversity, since our production plants are located in industrial areas and the production processes do not have particularly critical impacts on soil, flora or fauna. Water consumption does not represent a significant aspect in our production cycle since it is not used in business processes except in closed circuits for plant cooling and fire extinguishing systems in emergency cases (fire sprinkler and hydrant networks), and in sanitary services and irrigation of green areas. During recent years, our largest production plant, located in Atessa, has obtained and maintained compliance certification of its environmental management system under the international ISO 14001 standard. The Ozzano production plant is expected to obtain the environmental management system certification with the same standard by 2013. In any case, all of the production plants follow an approach to environmental issues management in compliance with the ISO 14001 standard requirements.

40


SUSTAINABILITY 2012 REPORT

| ENVIRONMENTAL RESPECT

Rational use of energy for limiting atmospheric emissions We are careful and invest resources to improve energy efficiency in production processes, and this also positively affects atmospheric emissions. At equivalent production rates our production plants are now more efficient and consume less energy than they did in the past. We manage to continuously improve our production processes through fine tuning and optimisation, (sometimes based on suggestions directly from our personnel) as well as through specific investments in new technologies. In this field, research and development in production processes also plays an important role.

Metal closures and Sustainability A significant part of the raw materials we use to produce our metal caps derive from recycled materials. The main raw material we use to produce closures is metal, particularly steel and aluminium, which we use as sheets for lithography and shearing and are mainly purchased from Italian and European companies. In Italy and Europe aluminium and steel from packaging products

Steel and aluminium are infinitely recyclable materials

introduced on the market in the form of products is mostly recovered and introduced once again in the production cycle: by large industrial waste collection centres, with separate collection of urban rubbish, and by waste treatment plants, where ferrous materials are magnetically extracted. In 2011, in Europe* this percentage amounted to 74% for steel and 67% for aluminium. In Italy, out of the total introduced on the market, 61 %** of aluminium and 75%*** of steel were sent for recycling. In fact in 2011, 374,169 tonnes of steel packaging were collected and, of these, 332,166 tonnes were sent for recycling to be reused by industry, i.e. an amount 33 times greater than the weight of the Eiffel Tower****. Separate collection of rubbish is particularly widely adopted for steel and aluminium packaging used in civil, industrial, craftsman and commercial activities and supplies the virtuous circle of raw material recycling. Because of this, in steel and aluminium production, the percentage of secondary (recycled) metal is far beyond 50% and increases constantly in comparison to primary (ore source) metal, with great advantages in terms of energy consumption * http://www.apeal.org/en/sustainability/environmental-pillar/steel-is-europes-most-recycled-packaging-material ** L’Italia del riciclo 2012 - Report ***Ricrea (Consorzio Nazionale Riciclo Imballaggi - National Consortium for Recycling and Packaging) Management Report 2011 **** http://www.ansa.it/web/notizie/canali/energiaeambiente/rifiuti/2013/05/16/Riciclo-acciaio-senza-crisi-Italia-332-mila-ton-2012_8717764.html

41


and the environment. Metals are completely recyclable, and recycling within the sector as well as from scrap has always been an integral part of their production process. There is no technological or qualitative difference between primary and secondary metal so much so that we can talk of materials being recycled at the end of their life, but in reality, for metal, it doesn't make sense to speak of “recycled material content”. From this point of view, metal packaging can thus be defined as absolutely eco-compatible. Most of the total weight of single-use cardboard packaging used in shipping packs for our products is composed of recycled material and, wherever it is logistically applicable, reusable metal containers are available, in some cases folding types to optimise recovery logistics for the following use. The raw material recycling chain is an active part of our plants’ operation, since almost all of our generated waste is collected separately and passed on to qualified companies so that it can enter the recycling chain whenever possible. Most of this waste is made up of metal (steel and aluminium), but there is also a good proportion of plastic, paper and wood which are recycled in a controlled manner.

Sustainable waste management In 2012 we sent more than 95% of our waste for recycling

Our waste is mostly made up of metal deriving from the process of cutting closure shells from sheets, which constitute the main structure of the final product. Approximately 10% of the sheet is not used in the final product and therefore ends up as scrap from the production process. Even plastic materials mostly derive from the process of extrusion and application of the seal and may be recycled and reused for purposes not related to food. Paper, cardboard and wood from packaging

material are reused in the sector of paper recycling. Finally, a limited quantity of hazardous waste, such as from coatings and ink residues, machine lubricants, used light bulbs and used printer cartridges, is disposed of under highly controlled conditions and in complete compliance with applicable norms. This waste is categorised internally

THE FOLLOWING TABLE REPORTS THE PURCHASES OF RAW MATERIALS BY TYPE Type of material

Year 2010 (kg)

Year 2011 (kg)

Year 2012 (kg)

63.838.505

51.289.637

58.557.254

Aluminium

1.452.404

1.764.837

2.308.674

Paint products (Coatings, enamels, inks and solvents)

1.679.003

1.703.609

1.717.680

Plastic materials (Cap seals and bodies)

7.728.836

8.783.243

7.124.606

Packaging materials

2.591.894

2.909.502

2.874.595

Steel (tin and chrome plate, stainless steel)

42


SUSTAINABILITY 2012 REPORT

| ENVIRONMENTAL RESPECT

quantity of hazardous waste, such as from coatings and ink residues, machine lubricants, used light bulbs and used printer cartridges, is disposed of under highly controlled conditions and in complete compliance with applicable norms. This waste is categorised internally and collected separately, and labelled with codes that identify its origins. Transport and disposal of the materials is then carried out by authorised and expert external companies, and every operation is documented for legally-required traceability.

Sustainable Packaging: The new "Smart Crown" caps” Nel 2012 abbiamo commercializzato oltre 400 Milioni di tappi “Smart crown”

Following the experimental phase carried out with some major international players in the beverage sector, we completed, together with several clients, the certification and trial testing phase for a type of closure especially designed to reduce environmental impact. We have started industrial-level production mainly from our Italian plants for one of the major multinationals in the beer sector, with the 2013 objective to convert around 2 billion caps of standard thick-

ness (0.23mm) to the new “Smart crown” standard (0.18mm) in their factories in Europe. We have also completed the certification phase of this innovative product at our Egyptian factory, and we are now in the phase of market testing with a major multinational in the beverage sector: the objective is to convert all the bottling activities in this market to the new standard. The major objective of the innovative “Smart Crown” project is to use a reduced thickness of metal while achieving greater mechanical performance and applying innovative sealing materials to achieve the same level of performance as standard-thickness caps. Reducing metal thickness from the standard 0.23 mm to 0.18 mm markedly reduces the environmental impact. Thanks to this new product it is possible to substantially reduce the environmental impact, not only because of the lower quantity of raw material, waste and emissions per unit produced, but also because of the advantages in production and logistics costs (lower energy consumption and increased number of units delivered per unit weight). All this is accomplished in full process compatibility with the existing plants, both in our own facilities and those of our clients, thus avoiding the need to invest to switch to the new standard.

2010 - 2011

2012

2013 (forecast)

Pre-series production, a few million

Industrialisation: over 400 million

Expansion and consolidation with

caps for sampling and start-up

crown caps

over 2 billion units

approval tests for clients

43


Other environmental initiatives REDUCTION OF THE RISK OF SOIL CONTAMINATION In our Atessa factory

we have

made investments to reduce the risks of spilling in case of accidents which may occur while transporting coating products used for printing of caps and seals, by upgrading it to the standard adopted in the Ozzano factory (this does not apply to other factories abroad because there are no printing facilities). • The warehouses for storing materials have been restructured to increase the safety and ease of access of the lift trucks for transportation purposes. • Some of the flooring in the factories, which had originally been made in tarmac, has been replaced with industrial-type flooring which prevents the penetration of spilled materials into the ground in case of accidents.

VOC’S EMISSIONS There have been improvements with regard to the emissions of volatile organic compounds (VOCs) in all our factories thanks to upgrade of the products by means of new coating products (paints and varnishes) and other solid residues having a lower solvent content.

FROM PAPER TO BYTES In the last years, the quantity of information transmitted electronically

Electronic data to reduce paper consumption

rather than manually has risen dramatically. Thanks to the internet and email, it has become possible to substantially reduce the environmental impact resulting from the information exchange within the company. From this perspective, we are converting our employees payslips from paper to electronic format, through a website with a restricted access area, where they can easily verify their salary and check and

download their payslip. Even the last corporate publications, like the Sustainability Report, the Code of Ethics and the Pelliconi Magazine, may be downloaded electronically from the company's internet site, often in different languages. To reinforce this company policy, as from this year, there shall be a limited number of printed copies of the sustainability report, and it shall be almost exclusively distributed electronically, in different languages.

44


SUSTAINABILITY 2012 REPORT

| ENVIRONMENTAL RESPECT

Intermodal transport of products The intermodal transport of goods over distances exceeding 700 km constitutes an economicallysustainable solution with a very reduced environmental impact. The transfer of large quantities of goods from land to rail transport and also sea transport has positive effects on energy consumption and emissions of CO2 and other exhaust gases produced by traditional land transport. For this reason, we are continuously on the look-out for opportunities to increase the volume of the products which are transported using combined means of transport (land, rail, river and sea) for delivery to clients. Intermodal transport within Italy and Europe, whilst having great growth

In 2012 we have cut emissions by of a total of 320 tonnes of CO2 thanks to intermodal transport

potential, is still a very complex procedure to handle especially due to the lack of adequate infrastructure like inter-ports or nodes for the exchange of goods between different means of transport, and highly-developed partners who are able to transport materials responsibly by different means of transport while ensuring timely delivery. Typically these nodes are logistic centres in which the different types of means of transport (land, rail, sea/river) meet, and where there is the transfer of containers or trailers from one means of transport to another. Besides the existing infrastructural constraints, there are also limitations relating to the demands of our customers who often require urgent deliveries with little prior notification, following a 'just in time' system often linked to the ordering of their own products by large-scale retailers. In spite of this constraint, we have nevertheless managed to ensure a high level of growth in intermodal transport, by increasing our consignments from 41 in 2010 to 315 in 2011 and 425 in 2012, and we are in the process of defining new guidelines for intermodal transport, in collaboration with new logistics partners, for new clients and new markets. We strongly believe that in order to promote this type of transport it is necessary to have a supply-focused approach as well as the drive to create new infrastructures and incentives together with appropriate partners.

INTERMODAL TRANSPORT FOR BULMERS LIMITED – IRELAND IN THE ROUTE ATESSA CLONMEL Following an initial part of the journey by land to reach the rail station in Novara, the swap body is loaded on the train which takes it to Rotterdam covering a distance of over 1000 km; from the port of Rotterdam there is another journey of 1100 km by sea to reach the port of Waterford which is only 50 km away from the final destination: the Bulmers Ltd factory in

Most of the journey (approx 2000 Km) is done by loading the swap body on the train or vessel; the only land transport is the connections at the initial and final interchange terminals

Clonmel-Tipperary.

45


Our people The value of human resources The culture of well-being The Pelliconi magazine Pelliconi Innovation Award Health and safety at work Search and selection Training Enhancing employee engagement and achievement at work The Angelo Pelliconi Laboratory Composition of staff

7


The value of human resources Here at Pelliconi we are aware of the importance and the significance of the development of highly competent and motivated individuals. These resources give value to the organisation through their capabilities and increase the company's competitive edge. This awareness has led us to come up with a series of initiatives to maintain our internal resources' loyalty, by increasing their well-being within the company and their sense of belonging to it. We provide the opportunity to all our employees to take up training and special initiatives aimed at value creation on an individual and organisational level, and at the distribution and sharing of core values and beliefs which reflect our culture.

The culture of well-being We uphold the idea that there is a very strong connection between personal well-being and performance at work - an indicator which in the past was only measured in terms of productivity. On the other hand, today productivity is indeed taken into consideration, but this is accompanied by new ideas and the motivation to continually

48


SUSTAINABILITY 2012 REPORT

| OUR PEOPLE

improve. This can only happen if people are motivated and interested in the work they do. This is the reason why we organise cultural, artistic and sports activities which promote the well-being of our employees, and which constitute fundamental aspects for the improvement of the quality of life, work performance and employee engagement. Moreover, we support several non-profit associations in which our employees are involved (please refer to the chapter about community relationships). In 2008 we carried out an analysis of the organisation and of employee engagement (in collaboration with the Ambrosetti Institute) from which it was clear that professionalism combined with a strong passion in one's work are recognized as fundamental elements of the Pelliconi culture. The analysis of some of the points was followed by a specific analysis done by internal groups who worked on the enhancement of employee engagement. Overall, employee engagement analysis is a fundamental way to create a communication channel with the employees, understand their needs and devise specific projects to enhance productivity and work satisfaction; another such analysis is foreseen in 2013.

The Pelliconi Magazine

A new voice to reach our employees and our main external collaborators

In December 2012 the Pelliconi Magazine was produced. This is

49


our corporate journal and is published every four months with the main objective of reporting news related to the company, from internal organisation to main events, and also including product innovations, but with the ultimate aim to foster and increase the sense of belonging of our employees, the spirit of collaboration and team work, thereby enhancing employee engagement. By means of this additional communication tool, we would like to stimulate the participation and involvement of the employees, and keep them updated on the activities that are going on while ensuring the sharing of information between different departments. Our journal is also a communications channel with the external world, and its main aim is to provide our current and future clients a closer look at our company, so as to establish stable and lasting contact with them. The publication includes an editorial written by the CEO, "the focus", which deals with a relevant subject or a topic which is pertinent to the company, and also recurring features describing Pelliconi, a section dedicated to innovations, a feature "from about the world" which describes the innovations originating from different parts of the world where we have operations and commercial branches, as well as pages dedicated to events, corporate activities and our employees, and finally a section related to our sustainability.

Pelliconi Innovation Award We strongly believe that the ideas of our people can significantly contribute to the improvement of our work methods and to innovation development. This is why a few years ago we successfully introduced a formal rewarding brainstorming process for the development of ideas in which all the employees take part: office workers, manual workers and managers. Each year the employees are given different themes, which may be related to the products or to some aspects of life at work, and about which everyone can try to contribute. The ideas are assessed by a special internal technical committee, which is made up of management-level members and representatives of different organisational areas. The best proposals are awarded with fuel coupons and vouchers from established travel agencies.

Health and safety at work We are ceaselessly committed to ensuring the health and safety of our employees and those of the subcontracted companies working within our factories. Already in 2012 we invested to ensure the availability of the necessary tools and training to reduce to a minimum the risk of accidents at work in the production department, in the offices and in the working sites where contract companies work. In 2012 the overall performance of the group improved compared to 2011 and 2010 both in terms of accident frequency and in terms of the seriousness of accidents. To ensure compliance with the laws, regulations and directives (national and foreign) related to safety, the following activities are carried out at our own premises, and occasionally at external training facilities: • analysis and constant updating of information on health and safety risks and dangers involving activities of Pelliconi

50


SUSTAINABILITY 2012 REPORT

| OUR PEOPLE

staff and personnel from external companies (by means of specific operational safety plans which are laid out for every assigned external contract); • adequate management, updating and communication of internal policies and procedures drafted and approved by the top management for the proper carrying out of the work in terms of accident prevention; • specific classroom and on-site training activities for the prevention of identified risks; • Activities to inform and involve the employees to take responsibility at all levels; • Internal checks on the correct implementation of procedures and on the correct use of protective equipment and work methods, regularly carried out by the safety officers responsible of each of the Group's facilities. scuno degli stabilimenti del Gruppo.

Search and selection The selection process begins with a precise description of the position, defining the skills, attitudes and experiences necessary to fulfil the particular role.

As part of our personnel search and selection we carry out continuous talent scouting, particularly with schools, local technical institutes, universities and business schools

Continuous updating of the various roles in the company, particularly

51


to fulfil the new corporate strategic objectives, allows us to carry out a direct and continuous market search. In order to support the selection process and to encourage the integration of new high school and college graduates, we have activated numerous working relationships with local schools, technical institutes, universities and associations.

Training The training of the employees is implemented through: • specialised technical courses related to the workplace tasks characteristic of the Group’s business;

We provided more than 7600 hours of training: about 18 hours of training per capita

• training courses on the legislation in force; • inter-disciplinary courses for the development of managerial skills (time management, innovation, negotiation, sustainability, etc.) • language courses • The specialisation course at the Angelo Pelliconi Laboratory In 2012 our employees had more than 2000 hours of training on safety at work, especially focused on manual workers.

Enhancing employee engagement and performance Over 20 key operational managers participated in a special pre-training course, intended to improve teamwork,

better

manage

their

co-workers and achieve better internal communication in the departments. The training project was made up of lessons in a classroom-type setting, followed by personalised coaching sessions on the basis of the strong and weak points identified for each participant as a result of the training courses on staff management and communication. The coaching activities were carried out with the aim of reinforcing

52


SUSTAINABILITY 2012 REPORT

| OUR PEOPLE

the specific skills of those persons who need to foster and maintain relationships with co-workers as an integral part of their job. Using the individual's experience as the basis, the aim was to encourage a transformation process with the aim of achieving better results at managerial and team levels.

The Angelo Pelliconi Laboratory With regard to internal development, in 2010 we inaugurated our corporate training centre open to all levels of the organisation. The centre offers appropriate training and updating for staff and it also welcomes participation from recent school graduates in the regions, with an eye to potential new hiring. In fact this training centre is available both to our employees and a limited number of external participants who may join the courses while carrying out an internship in the company. In this manner we combine the training opportunities of formal lessons with actual on-site work experience. This “Company University� is intended to improve our internal skills and performance, while at the same time extending a message of growth and support to the surrounding community in a moment of economic crisis, when other companies in Italy and elsewhere are cutting back on their human resources. The aim of this centre is to provide development for the entire workforce and to transmit our brand, which has been successful around the world. It should be stressed that we have concluded a number of contracts to pass on our know-how and specific technologies to other producers, who regard us as a state-of-the-art organisation in both technology and quality issues. In order to pursue this objective, we provide the participants with an interdisciplinary conceptual framework for understanding company processes, based on the awareness that a holistic approach and vision of corporate activity is an essential condition for proactive intervention in organisational dynamics. Lessons are given by Pelliconi managers, who provide a theoretical basis regarding the operation of various corporate functions and spread the "Pelliconi culture". The internal managers themselves normally give explanations of the type of work that they carry out on a day to day basis, thus showing how theory is translated into practice in our own organisation. However, for certain key arguments we rely on outside specialists that can offer students an understanding of their direct experience about how situations are addressed outside the Pelliconi Group. This systematic interdisciplinary approach allows us to specifically address and analyse the most significant sectors of corporate management. Thus, besides providing an overall vision, we also delve into the individual issues and

53


concentrate especially on themes of quality, effectiveness and efficiency, as these concern all levels of an enterprise. The Angelo Pelliconi Laboratory is a natural evolution of our existing relationships with the higher education sphere: since a number of years, students regularly visit us not only to follow our training courses, but also for research and preparation of their theses, and for the preparation and studies for university exams in the context of university-industry exchange and collaboration agreements, such as the “Programma Quadrifoglio" (“FourLeaf Clover Programme�).

Composition of staff Our team has grown both in Italy and in Florida and Egypt, and by the end of the second semester 2013 the number of employees was up to almost 500. Most of our employees (around 85%) are concentrated in Italy, where there are the central administrative and production facilities in Ozzano (Bologna) and Atessa (Chieti). More than 90% of our employees have an indefinite contract, and work here on a full-time basis. 21% of our employees are women, which is a substantial share given the type of work carried out, since the manufacturing sector is generally made up of a largely male workforce. This percentage is greater if we include the administrative and managerial staff, of which women make up 30%, well over the average figure in Italy. Approximately 15% of our employees are below the age of 30.

54


SUSTAINABILITY 2012 REPORT

The turnover rate (employees who resign), especially in Italy, is low in all job categories and across all age groups. Likewise the average length of service at the company is very high, sometimes more than 30 years, and this clearly reflects the loyalty-based relationship we have built with our employees.

OBJECTIVES

| OUR PEOPLE

We invest in new resources thereby confirming the positive occupational trend in our facilities

• Strengthen internal communication within the Group's facilities • Conduct an employee engagement survey

55


Community initiatives Pelliconi and the community Our commitment to scientific research Our support for regional culture Concrete help for the training of young people in the region Encouraging collective well-being through sports Employees involvement in social initiatives

8


In the last three years we have directed on average more than 2% of our earnings (before interest) to various community projects

Pelliconi and the community Besides scientific research, we support social, cultural, artistic projects and activities which constitute fundamental values of our society, contributing to improvement in the quality of life in the local communities where we operate. We support various local sports associations where our own staff participate, and this is also aimed at returning value to the region in terms of community well-being.

TOTAL INVESTMENT FOR THE COMMUNITY IN DIFFERENT AREAS

38% 28% 21% 13%

|

Social

|

|

Culture

|

Sport

|

Scientific Research

Our commitment to scientific research FRIENDS OF THE MUSEUM OF INDUSTRIAL HERITAGE We support the activities of the Industrial Heritage Museum Association, which are intended to enhance and develop Bologna’s industrial and historical culture and to strengthen the ties between the manufacturing world and that of technical education. The main aim of the Association is to safeguard the industrial heritage, and promote development and innovation activities, which involve new generations in education projects that rejuvenate the culture of technical-scientific knowledge to appraise the historical and industrial culture and the economic and manufacturing development of the region. This activity is also carried out by means of focused orientation sessions aimed at young people from local technical institutes, including information open days and guided visits to the facilities.

ER-AMIAT We support Er-Amiat (Emilia-Romagna Advanced Mechanics and Industrial Automation Technology) which brings together a group of 10 businesses from the Emilia region belonging to the sector of mechanical engineering who

58


SUSTAINABILITY 2012 REPORT

| COMMUNITY INITIATIVES

have common interests in the field of research and development of technical and scientific skills. This platform works to leverage financing in order to facilitate the application of new technologies developed in the field of scientific and technological research on a European and international level, promote training and educational phases for skills development, represent businesses in European Union institutions, and expose its requirements, potentials and development programs. These activities are not only carried out by competent authorities on a community level, but also through the organisation of conferences, seminars and publications. In April 2013 ErAmiat organised a seminar at the European Parliament in Brussels about “Prospects of decision-making in European politics 2014-2020 for innovation and competitiveness in industrial sectors”. During the seminar, certain main requirements of the industrial sector were presented, such as the ever pressing need of development to achieve European growth and creation of new jobs for young people.

Our support for regional culture MUSICA INSIEME In 2012 we continued to support the activities of the Musica Insieme (Music Together) Foundation, which was founded in 1987 and which became a foundation in 2002. Musica Insieme is one of the major concert music organisations in Italy, established in order to promote and spread musical heritage. It organises several activities and events, some of which are specifically intended to draw a broad public spectrum to the world of music, including: • the Concerts of Musica Insieme, at Teatro Manzoni • Musica Insieme in Ateneo, a concert season organised in direct collaboration with the University of Bologna and intended primarily for students • Invito alla Musica (Invitation to Music), a set of concerts for communities throughout the province of Bologna; • Musica per le Scuole (Music in Schools), a series of concerts for high school students, each prepared by a conference-lesson in the schools • MICO–Musica Insieme Contemporary, concerts dedicated to music of our times, preceded by encounters with the composers and artists.

THE MADONNA DI SAN LUCA IS NOW ACCESSIBLE TO VISUALLY-IMPAIRED PERSONS In 2012 we entirely financed a project for the development of a special multimedia application which allows visually-impaired persons to "see", "touch" and "hear" the sacred icon of the Madonna di San Luca in Bologna. A new generation painting, intended as an object "drawn" on a very thin layer of Carrara marble and which devoted visitors can today visit. The project was

59


coordinated by Mnemosyne, a cultural association involved with PERCRO (Perceptual Robotics Laboratory) which is part of the Institute of Communication, Information and Perception Technologies (TECIP) of the Scuola Superiore Sant'Anna, while the image of the Holy Mary was carved in marble by Model Idea S.r.l. of Massa. Mnemosyne also coordinated the technical process, specifically it has produced the artwork of the bas-relief which represents the threedimensional transposition of the icon of the Madonna di San Luca. The overall work was coordinated by the Regional Management Board for the Cultural and Landscape Heritage of the Emilia Romagna region. The new icon was presented on the 3rd of December 2012 on the International Day for the Rights of Disabled Persons. The icon was produced in the context of an inclusion project of the Regional Management Board for the Cultural and Landscape Heritage of the Emilia Romagna region, to encourage "the inclusion of disabilities through culture" Through the sense of touch and sight and a speech aid, it will be possible to retrace the history of this work of art which is now over 900 years old.

A concrete help for the training of youths in the region THE QUADRIFOGLIO PROGRAMME Since 2006 we have been participating in the Quadrifoglio Programme (“Four-Leaf Clover Programme�), which is promoted and organised by the Associazione Amici del Museo del Patrimonio Industriale (Friends of the Industrial Heritage Museum Association) and the Aldini Valeriani Foundation. The Quadrifoglio Programme's aim is to strengthen technical and industrial knowledge of the Emilia-Romagna community through the organisation of resources present in the region and the development of educational activities at all levels of technical and scientific knowledge extending from middle school to university level. A common characteristic of all the projects launched by the Quadrifoglio Programme is the close collaboration between educational institutions and businesses. The initiatives are promoted to increase our technical and scientific knowledge and promote the interchange between the conceptual creativity of students and the educational role of the schools on the one hand, and the wealth of experience offered by undertakings on the other hand.

Encouraging collective well-being through sport For a company with worldwide business customers like ours, sponsoring events in the local communities in which we operate serves purely as a means to return value to the region: unlike companies that deal directly with the consumer, no economic return is generated in terms of business marketing. Again this year we made a contribution to the organisation of various regional sports events in which some of our employees take part in races.

60


SUSTAINABILITY 2012 REPORT

| COMMUNITY INITIATIVES

4° PELLICONI TROPHY MTB RACE We have offered our financial support for the Emilia leg of the Gessi & Calanchi Mountain Bike XC championship held on the 3 June 2012. This event is organised in collaboration with the UISP cycling league in Bologna and Imola, and our employees take part in it too.

RUN TUNE UP Pelliconi financially supported the 12th edition of the Run Tune Up, the Bologna half-marathon held on the 15th September 2012, in which the Bologna Running Association takes part every year, together with the huge support and involvement of local authorities. The Run Tune Up package offers ample scope for tourism promotion and the presentation of Bologna Art Capital and solidarity, thanks to the involvement of national organisations like AVIS and A.I.R.C. We have also supported sports organisations, which often include our members: • Podistica Ozzanese (Ozzano Running Club) • AVIS (Association of Voluntary Italian Blood Donors) Cyclists Sports Club

PELLICONI GAME DAY SPONSORS WARRIORS BOLOGNA In June 2012 we sponsored the American football team of Warriors Bologna “for one day”. On that occasion all the employees of Pelliconi were able to attend the match free of charge and interact with the technical staff and the team, who provided a brief introduction to the world of American football.

EMPLOYEES INVOLVEMENT IN SOCIAL INITIATIVES THE FANEP ASSOCIATION Also in 2012, we have supported the social activities carried out by the FANEP association - Families Association for Child Neurology (www.fanep.it) through their Chocolate Easter eggs and Christmas panettone sales. As is traditional, we have made arrangements with the association and set up a channel of direct purchase for our employees in all the administrative offices. The aim of this initiative is to support the association which seeks to help sick children, while it also aims to involve our employees and raise their awareness about social issues.

AID TO THE PEOPLE AFFECTED BY THE EARTHQUAKE WHICH HIT EMILIA IN JUNE 2012 We have immediately taken action in the days following the earthquake which hit our territory and in which several people became homeless overnight, were deprived of their basic life necessities and had to face enormous difficulties. Thanks to the concrete help of our employees we directly supported the small community of Mortizzuolo, province of Modena, which was severely hit by the earthquake and where some of the basic necessities were not delivered immediately. In a few days, our employees collected some basic necessities which we delivered, by means of lorries provided by the company, to the people who were isolated due to the earthquake.

VOLUNTEERING Many of our employees privately give their active contribution in various volunteer activities in the most varied areas, ranging from the help and support to disadvantaged people or people with disabilities, to support activities for the local communities, and to the protection of animals.

61


Data Table of sustainability indicators GRI-G3 Content Index

9


TABLE OF SUSTAINABILITY INDICATORS TOTAL

TOTAL

TOTAL

2010

2011

2012

421

424

437

Senior Managers

10

10

9

Middle Managers

17

22

21

Composition of staff Total number of employees By job category

Office Workers Manual Workers

73

67

79

321

325

328

411

414

429

By contract type Full time Part time

10

10

8

380

396

399

41

30

38

51

55

54

310

304

312

60

65

71

Senior Managers

2

2

2

Middle Managers

3

4

6

Office Workers

26

28

32

Manual Workers

45

48

50

total

76

82

90

18%

19%

21%

14

11

25

12

10

21

2

1

4

Under 30 years

5

6

4

Between 30 and 50 years

2

4

15

Over 50 years

7

1

6

Total turnover rate

3,3%

2,6%

5,7%

Rate of people having returned to work following parental leave

100%

100%

100%

22

30

22

7,19

8,79

5,9

35,93

43,94

29,7

indefinite period definite period By age range Under 30 years Between 30 and 50 years Over 50 years By gender: no. of women per grade

% of women in workforce Turnover of staff Total number of employees who left in the year* of which: Men Women of which:

Health and safety at work No. of accidents with leave from work of at least one day Accident frequency rate: GRI Standard /Int. Labour Org. (ILO)** INAIL/ISO Standard***

* Left voluntarily, for dismissal or retirement ** Calculated as the number of accidents with leave from work of at least one day divided by the total hours worked in the year multiplied by 200,000 based on the GRI/ILO standard *** Calculated as the number of accidents with leave from work of at least one day divided by the total hours worked in the year multiplied by 1,000,000 based on the INAIL/ILO standard

64


SUSTAINABILITY 2012 REPORT

| DATA

TRAINING

2010

2011

2012

Total number of Training Hours

4263

8797

7646

11

21

18

By job category:

2010

2011

2012

Senior Managers

251

317

62

Middle Managers

688

1050

198

Office Workers

1493

3040

2037

Manual Workers

1831

4390

5349

2010

2011

2012

19.999

21.818

15.657

112

25.274

80.080

41.553

20.872

25.081

2010

2011

2012

23.115.063

26.592.687

27.235.952

3.191.744

3.446.174

3.750.368

Training hours per capita

WATER Consumption and Discharge Consumption by source (hl/000): from water supply from ground water withdrawal Discharge (hl/000)* * Estimate

ENERGY CONSUMPTION Electricity purchased (KWh)** 3

Gas consumption (m )***

** Equivalent to 83.214 GJ 2010 – 95.733 GJ 2011 – 98.049 GJ 2012 *** Equivalent to 124.510 GJ 2010 – 134.435GJ 2011 - 146.302 GJ 2012

EMISSIONS

2010

2011

2012

Nox (t)

9,83

12,33

15

Voc/Sov (t)

66,26

68,9

65,46

Co2 Electricity (t)****

9.153

10.531

10.785

Co2 Gas (t)

6.980

7.536

8.202

Total Co2 (t)

16.133

18.067

18.987

****Calculated with the emission factor of Italian Power Stations - 2010 as from the ISPRA Report 2012 on the emission factors in the Italian electricity sector

WASTE

2010

2011

2012

495

490

495

Special non-hazardous waste (t)

10.829

10.316

10.578

Total special waste (t)

11.324

10.806

11.073

Total special waste for recycling (%)94,5%

94,5%

95%

Special hazardous waste (t)

65


GRI CONTENT INDEX ORGANISATION PROFILE INDICATORS Indicator code

Description of the indicator

References, Limitations and Notes

Page

Level of reporting*

1. Analisis and startegy 1.01

Statement from the CEO regarding the importance of sustainability for the organisation and its strategy

Letter to stakeholders

3

1

1.02

Description of the key impacts, risks and opportunities

Our approach to sustainable development

6-13

1

Organisation name Main brands, products and/or services Operating structure of the organisation, including main divisions, operating companies, subsidiaries and joint ventures Location of the headquarters of the organisation Number of countries in which the organisation operates, name of the countries in which the organisation does most of its business or which are particularly relevant for the purposes of the issues of sustainability addressed in the report

Pelliconi profile Our products Pelliconi profile

16-17 30-33 21

1 1 1

Pelliconi profile Pelliconi profile

16-17 16-17

1 1

Nature of ownership and legal form Markets served (including geographical breakdown, sectors served, and types of consumers/beneficiaries) Scale of the organisation (number of employees, net turnover or net returns, total capitalisation, quantity of products or services provided)

Pelliconi profile Pelliconi profile Our Clients Economic impact Our people

16-17 16-17 24-27 36-37 54-55

1 1

2.09

Significant changes in size, structure or nature of ownership occurring during the reporting period

No significant changes occurred in the last year of reporting

/

1

2.10

Recognition/awards received in the reporting period

No prizes or awards were received in / the last year of reporting

1

Methodological note

2

1

Letter to stakeholders Methodological note Methodological note

3 2 2

1 1 1

Letter to stakeholders Methodological note

3 2

1

2. Organisation profile 2.01 2.02 2.03 2.04 2.05

2.06 2.07 2.08

1

3. Scope of the Report Balance report 3.01 3.02 3.03 3.04

Reporting period for the information provided (for example fiscal/calendar year) Publication date of the most recent Sustainability Report Reporting cycle (annual, bi-monthly, etc.) Contact point and useful addresses for requesting information on the sustainability report and its contents

Report objective and scope 3.05

Process for defining report content (definition of materiality, priority issues, and identification of the stakeholders to whom it is addressed)

3.06

Scope of the report (countries, divisions, subsidiaries, leased Methodological note facilities, joint ventures, suppliers) Statement of any specific limitations on the objective or scope of Methodological note the report Information relating to joint ventures, subsidiaries, leased Pelliconi profile facilities, outsourcing, or other entities that can significantly affect comparability between periods and/or organisations

2

1

2

1

16-17

1

3.09

Data measurement techniques and the bases of calculations, including assumptions and techniques underlying estimations applied to the calculation of the indicators and the compilation of other information in the report

Methodological note

2

1

3.10

Explanation of the effect of any restatements of information provided in previous reports and the reasons for such restatements

Methodological note

2

1

3.11

Significant changes from previous reporting periods in the objective, scope or measurement methods used in the report

Methodological note

2

1

Table identifying the contents of the report stating the page number or website of each section

GRI Indicator Index

66-70

1

3.07 3.08

GRI Content Index 3.12

continued

66


SUSTAINABILITY 2012 REPORT

| DATA

ORGANISATION PROFILE INDICATORS Indicator code

Description of the indicator

References, Limitations and Notes

Page

Level of reporting*

Current policy and practice with regard to seeking independent assurance for the report, with the explanation of the objective and bases of external assurance

he 2012 Sustainability Report has not been subjected to external verification. The economic data were extracted from the financial statement assessed by external and independent auditors

/

1

Assurance 3.13

4. Governance, commitments, and stakeholder engagement 4.01

Governance structure of the organisation, including committees under the board responsible for specific tasks such as defining strategy or organizational oversight

Pelliconi profile

16-17

1

4.02

Indicate whether the Chair of the board also plays an executive role (if so, indicate the function within the management and the reasons for this arrangement)

The Chair currently serves as a member of the Board of Directors

/

1

4.03

For companies with a unitary board structure, state the number of independent and/or non-executive members

Organisational structure

21

1

4.04

Mechanism available for shareholders and employees to provide recommendations or direction to the board Linkage between compensation for board members, senior managers and executives (including severance pay) and the organisation’s performance (including social and environmental performance)

There are no particular procedures

/

1

Pelliconi directors are not remunerated for these activities

/

1

Processes in place for the board to ensure conflicts of interest are avoided Processes for determining the qualifications and expertise of board members for guiding the organization’s strategy on economic, social and environmental issues

Pelliconi profile

16-17

1

There are no particular procedures

/

1

4.08

Internally developed statements of mission or values, codes of conduct and principles relevant to economic, environmental, and social performance and the status of their implementation

Our approach to sustainable development

6-13

1

4.09

Board procedures for overseeing the organization’s identification and management of economic, environmental and social performance, including the relevant risks and opportunities and adherence to international standards, codes of conduct and adopted principles

Pelliconi profile

16-17

1

4.10

Process for evaluating the board’s own performance, particularly with respect to economic, environmental, and social performance

There are no particular procedures

/

1

Our products

30-33

1

4.12

Explanation of the way in which the precautionary principle is addressed by the organization Subscription or adoption of codes of conduct, sets of principles and charters developed by external institutions/organisations relating to economic, environmental, and social performance

Our products

30-33

1

4.13

Membership of national and/or international trade associations

Community Initiatives

30-33

1

List of stakeholder groups engaged by the organisation in outreach activities Basis for identification and selection of the main stakeholders with whom to engage in outreach activities

Letter to stakeholders-Methodological note-Stakeholders relations Letter to stakeholdersMethodological note-Stakeholders relations

3 2 3 2 11-12

1

4.16

Approach to stakeholder engagement, specifying the frequency by type of activity developed, and by stakeholder group

Letter to stakeholdersMethodological note-Stakeholders relations

3 2 11-12

1

4.17

Key topics and concerns raised through stakeholder engagement, and the way in which the organization has responded to those concerns, including with regard to that stated in the Report

Letter to stakeholdersMethodological note-Stakeholders relations

3 2 11-12

1

4.05

4.06 4.07

Commitments to external initiatives 4.11

Stakeholder engagement 4.14 4.15

1

continued

67


ORGANISATION PROFILE INDICATORS Indicator code

Description of the indicator

References, Limitations and Notes

Page

Level of reporting*

Economic impact Respect for the environment Our people Economic impact Our approach to sustainable development Our products

36-37 40-45 48-55 36-37 6-13

1 1 1 1 1

30-33

1

2012 financial performance

36

1

5. Disclosure on management approach

DMA SO

Management approach to economic responsibility Management approach to environmental responsibility Management approach to the management of employees Management approach to human rights Management approach to responsible conduct of business

SMA PR

Management approach to product responsibility

DMA EC DMA EN DMA LA DMA HR

EC1

ECONOMIC PERFORMANCE INDICATORS Direct economic value generated and distributed, including revenues, operating costs, employee compensation, donations and other community investments, retained earnings, and payments to capital providers and government

EC2

Financial implications and other risks and opportunities for the organisation's activities due to climate change

Pelliconi is not subject to any / obligation of emission reduction or emission trading schemes. Therefore, fiscal (for instance carbon tax) or regulatory interventions, having direct effects on the business and on the financial performance of the company, are not possible. For Pelliconi climate change does not constitute a direct threat and does not impact the production of closures

1

EC5

Range of ratios of standard entry level wage compared to local minimum wage at significant locations of operation

The salary of the new recruits in all the group's branches is on average higher than the minimum salary stipulated by law

/

1

EC6

Policies, practices and proportion of spending on locally-based suppliers at significant locations of operation

35% of the purchase of raw materials / is made by Italian suppliers or foreign companies having branches or production facilities in Italy

1

EC7

Procedures for local hiring and proportion of senior management hired from the local community at significant locations of operation

The managers and employees of foreign subsidiaries are generally recruited within the local communities

/

1

ENVIRONMENTAL PERFORMANCE INDICATORS Raw materials used according to weight and volume

Respect for the environment

40-45

1

EN3

Percentage of used materials derived from recycled materials Direct energy consumption by primary energy source

Respect for the environment Sustainability indicators

40-45 64-65

1 1

EN4

Indirect energy consumption by primary energy source

Sustainability indicators

64-65

1

EN8

Total water withdrawal by source Water sources significantly affected by withdrawal of water

Sustainability indicators Our offices and production plants are located in industrial areas and do not present problematic issues for biodiversity

64-65 /

1 1

EN1 EN2

EN9

EN11

Location and size of land owned, leased, managed in, or adjacent Our offices and production plants to, protected areas and areas of high biodiversity value outside are located in industrial areas and protected areas do not present problematic issues for biodiversity

/

1

EN12

Description of significant impacts of activities, products, and services on biodiversity in protected areas and areas of high biodiversity value outside protected areas

Our offices and production plants are located in industrial areas and do not present problematic issues for biodiversity

/

1

EN13

Protected or restored habitats

Our offices and production plants are located in industrial areas and do not present problematic issues for biodiversity

/

1

continued

68


SUSTAINABILITY 2012 REPORT

| DATA

ORGANISATION PROFILE INDICATORS Indicator code

Description of the indicator

References, Limitations and Notes

Page

Level of reporting*

EN14

Strategies, current actions, and future plans for managing impacts on biodiversity

Our offices and production plants are located in industrial areas and do not present problematic issues for biodiversity

/

1

EN15

Number of IUCN Red List species and national conservation list species with habitats in areas affected by operations

Our offices and production plants are located in industrial areas and do not present problematic issues for biodiversity

/

1

EN16

Total direct and indirect greenhouse gas emissions by weight

Sustainability indicators

64-65

1

EN17

Other relevant indirect greenhouse gas emissions by weight

Sustainability indicators

64-65

1

EN18

Initiatives to reduce greenhouse gas emissions and reductions achieved

Respect for the environment

40-45

1

EN20

NOX, SOX and other significant air emissions by type and weight

Sustainability indicators

64-65

1

EN21

Total water discharge by quality and destination Total weight of waste by type and disposal method Total number and volume of significant spills

Sustainability indicators Sustainability indicators No spills occurred in the year of reporting Sustainability indicators Our offices and production plants are located in industrial areas and do not present problematic issues for biodiversity. In any case, the production cycle does not require discharges of water

64-65 64-65 /

1 1 1

64-65 /

1 2

40-45

2

EN22 EN23 EN24 EN25

EN26 EN28

LA1 LA2 LA3

Weight of special hazardous waste Biodiversity affected by discharges of water

Initiatives to mitigate environmental impacts of products and services and degree of impact mitigation Monetary value of significant fines and number of non-monetary sanctions for non-compliance with environmental regulations and laws

SOCIAL PERFORMANCE INDICATORS Total workforce by employment type, employment contract, and region Total number and rate of employee turnover by age group, gender, and region Benefits provided to full-time employees, but not to temporary employees

Respect for the environment

No administrative, criminal, pecuniary or / non-pecuniary penalties were recorded in the three-year fiscal period (2009-10, 2010-2001, 2011-12) having legal force for non-compliance or lack of respect for laws and regulations

1

Sustainability indicators

64-65

1

Sustainability indicators

64-65

2

Temporary employees take advantage of the same benefits as the full-time employees 100%

/

LA4

Percentage of employees covered by collective bargaining agreements

LA5

Minimum notice period(s) regarding significant operational changes, Different conditions stipulated for the / notice period in relation to including whether it is specified in collective agreements reorganising and restructuring are defined by the CCNL (National Collective Labour Contract) and union agreements Percentage of total workforce represented in formal joint Over 90% of the employees / management-worker health and safety committees that help monitor and advise on occupational health and safety programs

2

LA10

Average hours of training by employee category

Sustainability indicators

64-65

2

LA13

Composition of governance bodies and breakdown of employees per category according to gender, age group, minority group membership and other indicators of diversity

Sustainability indicators

64-65

1

LA14

Ratio of basic salary of men to women by employee category

In 2012 we conducted a research / on pay differentials between men and women; no significant gender pay differentials resulted in the management area; in the categories of employees and manual workers wage differentials are mostly attributable to the different length of service

LA6

/

1

2

continued

69


ORGANISATION PROFILE INDICATORS Indicator code

Description of the indicator

References, Limitations and Notes

Page

Level of reporting*

SOCIAL PERFORMANCE INDICATORS HR1

Percentage and total number of substantial investment agreements that include human rights clauses or that have undergone human rights screening

With regard to our suppliers of / goods and services, as from this year we have included in our purchase order a clause of acknowledgement and acceptance of our principles and values as defined in our code of ethics

2

HR2

Percentage of significant suppliers and contractors that have undergone screening on human rights and actions taken

Each year we carry out a qualitative / survey to be able to assess whether our suppliers have their own code of ethics and how many of them are involved in human rights issues

1

HR3

Total hours of employee training on policies and procedures concerning aspects of human rights that are relevant to the respect of human rights, including the percentage of employees trained

Sustainability indicators

64-65

1

HR4

Total number of incidents of discrimination and actions taken

No incidents of discrimination occurred involving internal or external stakeholders

/

1

HR9

Total number of incidents of violations involving rights of indigenous people and actions taken

There have been no litigations/lawsuits by indigenous people

/

1

SO1

Nature, scope, and effectiveness of any programs and practices that assess and manage the impacts of operations on communities, including entering, operating, and exiting

Community Initiatives

58-61

1

SO6

Total value of financial and in-kind contributions to political parties, politicians and related institutions by country

Company policies prohibit the donation of contributions to political parties and politicians

/

2

SO7

Total number of legal actions for anti-competitive behaviour, antitrust, and monopoly practices and their outcomes

No legal actions for issues of unfair competition, anti-trust or monopolistic practices were recorded in the period 2010-11-12

/

1

SO8

No administrative, criminal, pecuniary or / Monetary value of significant fines and total number of nonmonetary sanctions for non-compliance with laws and regulations non-pecuniary penalties were recorded in the three-year fiscal period (2009-10, 2010-2001, 2011-12) having legal force for non compliance or lack of respect for laws and regulations

1

PR1

PRODUCT INDICATORS Life cycle stages in which health and safety impacts of products and services are assessed for improvement, and percentage of significant products and services categories subject to such procedures

Our products

30-33

1

PR3

Type of product and service information required by procedures, and percentage of significant products and services subject to such information requirements

Our products

30-33

PR5

Practices related to customer satisfaction, including results of surveys measuring customer satisfaction

Our products

30-33

1

PR9

Monetary value of significant fines for non-compliance with laws No penalties for non-compliance with and regulations concerning the provision and use of products and laws or regulations relating to the provision and use of products and services services were recorded in the financial years 2009-10, 2010-2001, 2011-12

/

1

*Level of reporting: 1 Total – 2 Partial – 3 Not applicable

70


SUSTAINABILITY 2012 REPORT

| DATA

71


PELLICONI & C. S.P.A. VIA EMILIA, 314 40064 OZZANO EMILIA (BOLOGNA) ITALY

METHODOLOGICAL SUPPORT AND EDITORIAL COORDINATION SOSTENIBILE SRL - ROME GRAPHIC DESIGN, EDITING AND LAYOUT PRC SRL - ROME

ARTWORK CLOROFILLA SRL

- VICENZA


SuSTAInAbILITy 2012 REPORT

Contents 2 3

Methodological note Letter to stakeholders

1. Our approach to sustainable development 6 7 8 9 9 10 11 13

The pillars on which our vision for sustainability is based Our ethical principles and values Our Code of Ethics Professional training on ethics and sustainability Promotion of human rights Our commitment towards conflict minerals Relationships with our stakeholders The first report: we have asked our clients

2. Pelliconi profile 16 18 20 21

A global company Our manufacturing plants in Italy and worldwide Our history Organisational structure

3. Our clients 24 25 26 26 26 27

The Pelliconi universe Our commitment to client satisfaction Enhanced customer service function Evaluation of customer satisfaction The new software for customers: Pelliconi Online Proofing Product research and development: a partnership with our customers

4. Our products 30 32 33 32

Responsible packaging R&D: new PVC-free closures for baby food Our portfolio Promotional products

5. Economic impacts 36 37

2012 financial performance Our suppliers

6. Environmental respect 40 41 41 42 43 44 44

Reducing environmental impact Rational use of energy to limit atmospheric emissions Metal closures and sustainability Sustainable waste management Sustainable packaging: the new "Smart Crown" caps Other environmental initiatives Intermodal transport of products

7. Our people 48 48 49 50 50 51 52 52 53 54

The value of human resources The culture of well-being The Pelliconi magazine Pelliconi Innovation Award Health and safety at work Search and selection Training Enhancing employee engagement and achievement at work The Angelo Pelliconi Laboratory Composition of staff

8. Community initiatives 58 58 59 60 60 61

Pelliconi and the community Our commitment to scientific research Our support for regional culture Concrete help for the training of young people in the region Encouraging collective well-being through sports Employees involvement in social initiatives

9. Data 64 66

Table of sustainability indicators GRI-G3 Content Index


SUSTAINABILITY 2012 REPORT


Pelliconi Sustainability Report 2012