2016 Sustainability Report - Sambonet Paderno Industrie

Sustainability report 2016

Sambonet Paderno Industrie S.p.A.

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index Letter to the stakeholders

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Introduction 6 • 10 principi, 10 impegni 6 • Note 7

Sambonet Paderno Industrie • • • • • • • •

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Paderno 8 Sambonet 8 Vision 10 Mission 10 Values 10 Strategic aims 10 Company 11 Activity 12

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Environmental performance

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1st Principle - environmental sustainability

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2nd Principle - Adoption of a preventive approach 17 • Indicator 17 • Paper 17 • Methane 19 • Electrical energy 20 • Water 20 • Waste 24 • Packaging 27 • Waste finished product 27 3rd Principle - Efficient use of natural resources 28 • Materials 28 • Water resources 29 • Energetic resources 29 4th Principle - Monitoring and reduction of environmental impacts 30 • Wastewater 31 • Production 31 • Turnover index 31 5th Principle - Focus on innovative technologies

32

6th Principle - Product stewardship

33

7th Principle - production chain stewardship

33

8th Principle - Awareness raising and training

35

9th Principle - Transparency with stakeholders

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10th Principle - Consistency with International policies • Transparency and ethics • Organisational model • Sustainable development • Human rights

36 37 37 37 37

Social performance 40 • External stakeholders • Internal stakeholders

40 42

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letter to the stakeholders Franco Coppo CEO of Sambonet Paderno Industrie

Headquarters of Sambonet Paderno Industries in Orfengo (NO)

S A M B O N E T PA D E R N O I N D U S T R I E S . P. A .

2010 – 2016.

Six years have passed since Sambonet Paderno Industrie first Sustainability Report publication and the enthusiasm and dedication are still the same.

The Company always sets for itself the aim of guaranteeing the highest quality of all products, considering demand increase, and above all, following innovative standards that meet customer needs. Commitment to quality has always played a fundamental role, and in recent years, issues related to environmental and social awareness have also come to the forefront.

With this perspective, Sambonet Paderno Industrie has created and carried out projects to improve its Corporate Responsibility policy by tightening controls, planning appropriate formation and structuring responsible management of resources.

Through a gradual cultural change with constant focus on its environmental approach, clear goals and fine-tuning of processes, today it is possible to understand the importance and practicality of what has taken place over the past years. The result of this process are benefits that helped the Company grow industrially and in reputation, improved the role and work life of those involved and made a positive impact on the local community and land.

As evidence of the efforts being made towards responsible consumption and natural conservation of energy and water, 2015 has been the year in which a very important project dealing with the saving and optimization of consumption was completed.

The Group therefore received energy certification UNI EN ISO 50001:2011. This most recent certification is now added to the other voluntary ones regarding food safety and quality (UNI EN ISO 9001:2008 e ISO 22000:2005), environmental safety (UNI EN ISO 14001:2004) and workers health and safety (OHSAS18001: 2007), achieved and maintained with a constant attention to product quality and improvement of the work environment. To ensure a further check on item safety, the Company internally carries out a specific migration analyses through the ASEC Lab, its own internal laboratory, which has obtained the UNI CEI EN ISO/IEC 17025:2005 certification, concerning the general requirements for the competence of testing and calibration laboratories.

2016 was also the year in which Sambonet Paderno Industrie successfully concluded the certification procedure for social responsibility SR10: 2011. The achievement of this goal represents the Group’s commitment to the voice, values, needs, and expectations of all those who interact with the Company (employees, financial community, stakeholders, local communities, suppliers, customers, associations on the territory, and media). A modus operandi aimed at sharing the tangible impact of corporate decisions, divulging clearly and transparently the information related to company activities, and communicate objectives from a viewpoint that is both distinct and of absolute integrity.

Along with this recognition – as part of the Confindustria “Premio Imprese per la Sicurezza 2016” – the company received special mention for their widespread efforts made to promote the excellence of Total Safety Management at their foreign production units in France and Germany.

Corporate responsibility is an issue that the Group intends to continue upholding, and next year it will continue to be discussed and expanded upon in legislative terms (Italian Legislative Decree 231), together with the Industrial Association of Novara.

Within this report, it’s possible to retracing the data and success that demonstrate the Group’s sustainability, transparency and stakeholder interaction. These key factors distinguish the work and future development strategy of the Company.

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introduction The statement on the social and environmental impact of the Company’s activities, the commitment to its employees and the relationship with suppliers and customers make up the “social or sustainability report”.

This tool is evidence of the business’ human and ethical profile as well as the code of conduct that constitutes its missions: to protect the environment and improve the quality of people lives. This is why its mandatory implementation could contribute to sustainable economic growth.

In contrast to the financial statements, it is a spontaneous report that is not subjected to checks or certifications. Preparing and spreading it is a free choice, motivated by a genuine desire for transparency.

With this sixth issue of the Sustainability Report, prepared according to the guidelines set out by Confcommercio, the Company wants to provide an outline of its corporate activities and its operational methods, highlighting the actions undertaken to pursue ethical and sustainable development and explaining the results achieved.

10 principles, 10 commitments

The mission of Sambonet Paderno Industrie S.p.A. is to manage and develop brands that represent the consumers first choice of consumers.

The Company’s approach to sustainability, in addition to be a responsible attitude, has a positive impact on the business in terms of profit and economic growth. For this reason it has become an integral part of the company philosophy and it guides all activities: from the choice of raw materials to the final product. The company focuses on ten key principles that result in as many commitments:

1 - Environmental Sustainability

It becomes part of the corporate culture and it plays an important role in the mission. As a matter of fact, the Company has realized that only environmental sustainability will lead to responsible and longlasting development. Long-term vision thus prevails over short-term vision.

2 - Adoption of a Preventive Approach

The Company acknowledges the importance of the prevention activity and allocates resources for this purpose. This approach is constructive also because it makes all the people responsible for management analyse and face current and potential problems and strive to prevent them. One of the areas in which prevention is crucial is environmental protection. As a matter of fact, any other approach in this area may cause irreparable damage and seriously affect the whole community.

3 - Efficient use of Natural Resources

The Company is aware of the limited amount of available natural resources and commits to manage them responsibly at all organisational levels. Special attention is paid to the use of raw materials, water and energy.

4 - Monitoring and Reduction of Environmental Impacts

Monitoring is crucial to understand the current situation in terms of environmental impact, to plan improvement actions and to check the results of their implementation.

5 - Focus on Innovative Technologies

The Company pays much attention to the whole product life cycle, focusing on environmental protection at every stage.

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6 - Product Stewardship

The Company pays much attention to the whole product life cycle, focusing on environmental protection at every stage.

7 - Production Chain Stewardship

The whole production chain is assessed in terms of sustainability and environmental protection in order to fully implement the project.

8 - Awareness Raising and Training

The Company believes that the involvement of human resources plays a key role, with a view to forge a corporate culture based on environmental protection. All the staff are directly required to contribute to the success of the project in different ways depending on their activity. The staff are also constantly monitored and encouraged also by means of specific pay bonuses.

9 - Transparency with Stakeholders

Transparency consists in disclosing the content and the results of the project by involving the whole chain in its actual implementation.

10 - Consistency with International Policies

The themes of sustainability and environmental protection are monitored and they also play a key role in international business relationships.

NOTES Methodological note

The Sustainability Report of Sambonet Paderno Industrie S.p.A. (hereafter also referred as the “Company� or Sambonet Paderno Industrie) has been prepared according to the Charter of Environmental Sustainability Principles by Confindustria, a point of reference for shared principles for sustainable development. The process of preparing the Sustainability Report has involved all types of company functions, coordinated in research and reporting of activities, proving the successful collaboration of all interested parties.

Process and information quality

The document shows the main economic, environmental and social impacts of the Company in order to provide a broader framework for the activities, the most significant aspects in the sector and the reference local dimension.

The details provided for every reporting area depend on their importance in the objectives and strategies of Sambonet Paderno Industrie.

The document has been drawn up using a simple and clear language, while data are presented by means of images, diagrams and tables so that they can be easily understood and interpreted.

To provide a more comprehensive picture in this Report indicators and statistical data have been used.

All the data has been processed and verified by the appropriate department managers, referring to 2016 (from the 1st of January to the 31st of December) and always presenting the most updated information available.

The Sustainability Report is produced annually and the Company is going to use its standard official media to disclose it.

Contents

The structure of the document reports sustainability performances based on 10 principles for 10 commitments, each for a specific action area. A summary of the topics that will be covered in this document is given below, from the beginning of the Group to the history of each brand.

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Sambonet Paderno Industrie Part Of The Arcturus Group From a mechanical industry of Milan to a leading international Group.

Sambonet Paderno Industrie originated as the Officine Meccaniche Giovanni Coppo, born in 1978, a company that today has resulted in the establishment of the Arcturus Group.

In 1979, the future Arcturus Group starts its successful business history with the acquisition of Paderno, world leader in the manufacture of professional stainless steel and aluminium cookware and kitchenware. Almost twenty years later, in 1997, the Group acquires Sambonet, historical Piedmontese company producing flatware and holloware. Over the years it has grown significantly, expanding internationally thanks to the Sambonet’s extensive expertise in the hotel industry and the acquisition of the prestigious German porcelain company Rosenthal AG in 2009, assuring the Group’s place in the Home, Hotel & Restaurant and Contract tabletop sectors.

The industrial venture undertaken by Pierluigi Coppo and his brother Franco has been further consolidated with the acquisition of German porcelain brand Arzberg in 2013 and the historical French excellences of Raynaud Limoges porcelain and Ercuis’ silver flatware in 2015. Arcturus’ business strategy based on growth and acquisitions has created a leader in terms of quality, diversification and complementary output for tabletop and kitchenware, with the different brand identities delivering mid-high to extremely high-end luxury.

Paderno A complete range for every need in the kitchen. More than 10.000 items dedicated to chefs and passionate gourmands.

From the cookware to the kitchen utensils, then knives, bakery items and tools for every kind of preparation, Paderno offers a complete selection for the best kitchens of houses and restaurants.

A brand that finds its origins back in 1925 in Milan as “Alluminio Paderno”, specializing in household cookware before it decided to focus on the professional cooking world. With over 90 years of history and a strong worldwide presence, Paderno is the premier choice for professionals and gourmands.

Sambonet Flatware and collections for the table, the kitchen and the living. Italian design and quality identify sambonet timeless style.

Sambonet is an international leader in the production of stainless steel, silver-plated stainless steel and electroplated nickel silver flatware and holloware, both classic and with a modern design take. We have always done everything needed to keep the quality of our products high, paying great, artisan attention to details, and keeping a constant balance between tradition and innovation.

Although we can trace the origins of the first Sambonet design item back to 1932, our company’s success really took off in the sixties with the work of great designers like Roberto Sambonet. Highly innovative and sophisticated but at the same time practical flatware and tableware drove the company towards design. In addition to its tableware line, Sambonet has recently introduced “Sambonet Luxury”, featuring a refined, high-end selection of high quality products and “From Sambonet to Kitchen”, a youthful and friendly style brand aimed at entering the world of kitchens. The common denominator crossing all the brands is Italian design and timeless style.

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vision

Managing and improving its business by enhancing its own values of history, quality, stability, innovation and safety assuring social and environmental responsibility.

The foundation of the corporate identity can be seen in the way the Company operates, from the technical and production point of view to the development of the attitude to identify, encourage and meet the needs of the consumer.

The Company tries to achieve its goals through: > support and good standing of all the brands; > trust in people and teamwork; > responsibility towards the stakeholders and the business

mission

Through a clear common strategy, the mission aims to improve and increase international business, according to the distinctive features and placement of each brand.

The Company would like to support and promote the excellence, design, style and typically Italian values that have been the keys of its leadership in the business.

The experience and know-how of the Group, focused on competitiveness and innovation, give a contribution to the success in both the Ho.re.Ca business and the retail business of tableware, kitchenware and household items.

values

The Company’s values and beliefs which guide its actions are: > people are the best and most permanent investment; > responsibility is clear and personal; > the teamwork makes possible the achievement of objectives; > the goal is to understand, respect and satisfy the customers; > the reputation is the most important thing.

strategic aims

The global strategy of the Company is based on the following priorities: > increasing a solid and suitable product portfolio for each segment of the market; > constantly improving the commercial performance in all markets; > developing through the global dimension of the Company and the differentiation of its production.

The Company works promoting its own growth in the target market, improving its international outlook in order to distribute its products in the foreign markets where it is present. Coherently with the global strategy, Sambonet Paderno Industrie has set some ambitious objectives to pursue through a constant effort that goes in the direction of a sustainable and responsible development. In particular, it aims to consolidate its position in the market through the leadership of the brands Sambonet, Paderno and Arthur Krupp and to strengthen the portfolio and the business strategy, focusing on the people development, a key asset for the Company.

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Company company name Sambonet Paderno Industrie S.p.A.

d

Postcode 28060

BUSINESS FIELD Engineering

2851

Office workers

Factory workers

Full time 279

Typical working time

147

134

Part time

8:00 - 16:45

281

2

Working days per week

Working months per year

Closing period

5

12

NONE

employees female

employees male

year

1978

NOVARA

ISTAT code

Total number of employees

ation

u fo n

Province

address Via G.Coppo 1-C town ORFENGO (NO)

Total area 150.000 M²

2013

2014

2015

2016

75

87

111

120

29%

32%

42%

43%

182

183

154

161

71%

68%

58%

57%

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activity Sambonet Paderno Industrie is an engineering company, specialized in the production of cookware, holloware and flatware in stainless steel, nickel silver and aluminum. The production site is equipped with a latest technology automated galvanic system. In respect to its traditions, it maintains a manual silver plating department.

PRODUCTION DEPARTMENTS ARE:

• • • • • • •

Centro Stile Tooling Department Material preparation Flatware Cookware and holloware Welding Electroplating

• • • • • • •

Special finishes Polishing Assembling Testing Laser and pantograph Warehouse ASEC Lab analysis laboratory

production chain Raw Material Arrival Raw Material Stocking Material Setting Flatware

Holloware / Cookware

• Bloom’s shearing • Millwork • Pro les cutting • Stamping • Washing • Printing • Polishing • Final washing

• Dishing / Printing / Trimming • Washing • Braze welding • Cleaning • Assembly / Handles riveting • Picking • Final cleaning • Final washing

Silvering Assembling Testing / Packaging Finished Products Stocking Shipment

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raw materials used in 2016 stainless steel

aluminum

blued steel

TYPE KG

TYPE KG

KG 35.221

Disc 265.507

1050 soft alloy disc

77.221

Strip 98.931

3103 alloy disc

28.195

Square 64.542

1050 hard alloy disc

3.316

430 strip

Strip

2.427

63.901

Tube 59.724 Metail sheet 304 2B Twin lead

3103 alloy square

11.022

cyanide KG 3

nickel silver

29.754

TYPE KG

6.868

Sheet 13.527

Drawn 8.105

copper

silver

nickel

TYPE KG

TYPE KG

TYPE KG

Annealed copper bar

Granules 999.5

Nickel Crown

1.823

Border 53

500

600

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environmental performance 01—10 first principle

Environmental sustainability Sambonet Paderno Industrie believes that acting in a responsible manner has a positive influence on its growth, demonstrating company stability. From an environmental point of view, it is committed to the safety and conservation of natural resources, realizing the importance of their preservation.

Within this context, in 2005 Sambonet Paderno Industrie earned – based on the UNI EN ISO 14001:2004 standard – the environmental certification issued in September in keeping with new UNI EN ISO 14001:2015 requirements.

In February 2016, the certification for Corporate Social Responsibility in compliance with IQNetSR10 guidelines was also obtained.

Corresponding to the size and activities of the organization and focused on the continual improvement of environmental performance and pollution prevention, this policy has been integrated following new standards of quality, safety and product safety as well as the new energy certification.

The Quality, Environment and Safety policy has been signed by the high management of the Company and in order to share these values with all the employees, it has been posted in the Company’s notice boards and published on the employee’s digital time clocks and on the Company website.

The integrated Policy of systems of Sambonet Paderno Industrie aims at reaching the following shared objectives: • care towards the customer: quality of the product, price competitiveness, respect of delivery time; • reduction or elimination of high polluting products; • limitation of the production processes which cause relevant environmental impact or that may cause potential risks for the health and the safety of the workers; • reduction in the production of special wastes and/or solid wastes; • awareness that the responsibility of the health and the safety management of the workers concerns the entire Company, from the Management to each employee, each one according to his competences; • constant aptitude to propose situations able to develop improvement and, if already existing, create a monitoring plan; • efficiency of the safety and health management; • awareness raising of the employees concerning the importance of respecting rules of health and safety at work.

For a correct evaluation of the Company’s interactions and environmental and energy impacts, please find below an analysis of the different steps of the supply chain, focusing on the qualitative and quantitative aspects of the input and the output which are more relevant on the environmental impact.

Some of the topics taken into consideration were: • use of raw materials; • energy; • soil; • emissions into the atmosphere; • wastewater;

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• waste; • released energy; • other.

For the evaluation of environmental aspects, Sambonet Paderno Industrie has decided to use checklists taken from: Guidelines for the Integration of Environmental Management Systems as well as Safety and Workplace Health (S&SL) for small and medium enterprises.

These new instruments identify the following information for each stage of the manufacturing process: • input and output; • phases of the process or activity; • other optional data (documents, responsibilities, etc.).

Standard conditions and any abnormal or emergency conditions are included and described as well, along with their frequency/probability of occurrence.

In order to define significant environmental aspects, the following significance criteria are used: 1. aspect regulated by laws, authorisations, agreements; 2. situations subject to recent sanctions imposed by the competent authority; 3. quantitative significance of the aspect under consideration; 4. toxicity, level of hazard relating to the aspect under consideration; 5. importance for stakeholders and other impacts on the community; complaints or claims received.

The significance of each environmental aspect is established by using the spreadsheet containing the combination of the parameters required to determine the value of each environmental impact.

Assessment of environmental impacts Non significant

Significant

Very significant

0÷2

3÷5

6÷9

Area where the environmental aspects are not significant in terms of both frequency and probability of occurrence.

However, these aspects need constant monitoring to make sure potential hazards are under control. Actions may be either preventive or corrective.

Area where significant environmental aspects have been identified. This requires identifying and scheduling actions intended to manage their significance. Corrective actions are required.

Area where very significant environmental aspects have been identified. This requires an immediate corrective action.

action can be taken if deemed necessary

scheduled action

immediate action

*To be scheduled within 6 months

*Action to be taken within 3 months

*Action to be taken within the minimum technical time required

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environmental performance 01—10 first principle Environmental Sustainability

The analysis has identified the following significant environmental aspects: Process PURIFICATION

COOKWARE

GALVANIC

HOLLOWARE

Significant aspect Atmosphere emissions

Emissions into the atmosphere deemed significant are those of the point of emission relating to point 32.

Wastewater

The discharge of wastewater is authorised by the Province of Novara. The parameters deemed dangerous are constantly monitored by carrying out weekly analyses on metal parameters based on the use of ASEC Lab’s ICP.

Use of raw materials

All the chemical reagents used for purification are classified as irritating or hazardous chemicals. All the workers in the galvanic area, where the purification plant is located, are trained about and well aware of the reagents employed.

Waste

Hazardous waste result from purification and from the subsequent sludge thickening process. Hazardous waste includes sludge and exhausted sand and carbon. Company authorised for disposal are involved and chemical analyses on waste are performed to determine hazardous substances and their association with the proper EWC code.

Soil

This aspect was considered very critical. As a matter of fact, the batch tank for cyanide treatment is made of moplen and is located next to storage tanks precisely to prevent any spill. In addition, the whole area is equipped with screens, storage tanks and booster pumps that recirculate all the solutions for purification purposes.

Other

The aspect deemed significant is noise. As regards this aspect, the Risk Assessment document states that, based on the level of noise measured, workers’ turnovers on machines are required in the light of processing cycles. As far as the environmental aspect is concerned strictly speaking, it is deemed that noise cannot be reduced since the layout has already been optimised and machines have already been soundproofed where possible. In addition, external noise measurements have showed that the noise level is within the limits.

Energy consumption

All the equipment used requires much energy, especially the equipment for braze welding, turning and spot welding of handles.

Atmosphere emissions

Emissions into the atmosphere deemed significant are those of the points of emission relating to points 31, 32 and 33. The points are monitored on a three-year basis as per the authorisation issued and routine maintenance is performed on scrubbers.

Use of raw materials

Also the raw materials used within the cycle are deemed significant. All the workers in the galvanic area are trained about, well aware of and officially qualified for the use of toxic gases.

Other

During manual polishing of items, the surfaces that come into contact with abrasive or polishing wheels heat up and release heat at a local point.

Other

The aspect deemed significant is noise. As regards this aspect, the Risk Assessment document states that based on the level of noise measured workers’ turnovers on machines are required in the light of processing cycles. As far as the environmental aspect is concerned strictly speaking, it is deemed that noise cannot be reduced since the layout has already been optimised and machines have already been soundproofed where possible. In addition, external noise measurements have showed that the noise level is within the limits.

The new checklists have also been used to assess the environmental impact of the following departments: • factory outlet • gym • dining hall • laboratory None of these have proved to have a significant environmental impact.

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02—10 second principle

Adoption of a preventive approach In order to reach the improvement aims, the following elements have been indentified: • resources needed; • timelines and means, determined by an accurate planning; • local critical issues, if any; • activation of communication channels with the stakeholders.

Regular activity reviews and internal audits have been envisaged with a view to update goals in order to assess the effectiveness of the measures taken.

Indicator

To better highlight what has been done and below explained, a trend assessment was made over the past years regarding all relevant environmental aspects. Indicators to see resource consumption, analysed by the number of kilograms shipped (parameter indicating company performance) were used in order to homogenize obtained results. Indicators are the monitoring tool of environmental performance of the production process. They verify effectiveness of actions taken to achieve sustainability goals.

2.964.000 kg

2013

Paper

sent kilograms 3.354.000 kg 3.181.000 kg

2014

2015

3.049.523 kg

2016

A new method of management and electronic storage of the documents (“k-files”) has been created and implemented. The correspondence with the customers and the suppliers is managed by certified electronic mail. The production work is managed through touch screen terminals and the prints have been reduced to the minimum thanks to appropriate controls.

To respect this objective, all the documents concerning the management system and the production have been created in a digital format, available through the corporate website and to be print only if really necessary.

All the staff have been encouraged to use paper with the utmost responsibility also by means of a specific pay bonus established in 2012. The parameter is calculated as the ratio of the number of paper reams purchased to processed orders (work orders, purchase orders, sales orders). The results obtained are summarized in the charts on the next page.

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environmental performance 02—10 second principle Adoption of a preventive approach

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CONSUMO (RISME/ORDINI)

paper consumption 15

14

13

12

11

10

2012

2013

2014

2015

2016

14,47

14,55

11,93

11,24

10,30

RISME/ORDINI

RISME/ORDINI

RISME/ORDINI

RISME/ORDINI

RISME/ORDINI

2012

2013

2014

2015

2016

The average paper consumption (no. of reams/no. of orders) in 2016 was equal to 10.30 – less than the previous year and even less than 2013 and 2012 – thanks to the implementation of a documental archiving management system which significantly reduces paper consumption. This performance is the result of greater attention to paper consumption by employees. To motivate employees, the Company has added an assessment index in the Performance Bonus. As part of these innovations, paper consumption was maintained as one of the leading indicators for the purposes of determining the winner of this award. The Company’s goal is to cut at least 10% of all consumption.

Since October 2013, the Company has opted for the purchase of FSC paper only, testifying once again to its commitment to the environment. The FSC logo mark certifies that products are made of raw materials from forests that are responsibly managed in accordance with forest management and chain of custody principles.

Methane

As previously planned, in 2012 the whole monitoring program intended to increase efficiency in air conditioning and heating systems was replaced and enhanced by means of consumption mapping. In the new monitoring system, the thermostat is set up by a remote computer and the temperature is kept constant thanks to suitable sensors. All the offices and the areas not used are not conditioned.

While designing the new plants, the Company chose to apply measures of energetic saving such as: insulation, the use of frames with low thermal transmittance elements and the use of thermal system at low consumption.

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consumo di metano The indicator is calculated as the ratio between the annual consumption of methane and kilograms of goods shipped during the year by Sambonet Paderno Industrie.

322.000 m

268.000 m

285.000 m

260.000 m

PER YEAR

PER YEAR

PER YEAR

ALL’ANNO

3

INDICATOR

0,11

3

INDICATOR

0,08

3

INDICATOR

0,09

3

INDICATOR

0,09

For the purpose of comparing consumption trends with temperatures recorded from 2012 to 2016, degree days were taken into account. The degree days, by definition, are the difference in average daily temperature and the 20°C that we maintain at home, for every day during the heating season.

Essentially, this means defining, zone by zone, how many “degrees are necessary every day” to heat a home.

N (heating days) = 183 days (from 15/10 to 15/04)

2013

2014

2500

2015

2016

The annual degree days reported on the ARPA Piemonte website are also compared for the period between 2013 and 2016.

2471

2400

2300

2224 2200

2094

2100

2102

2000

1900 2013

2014

2015

2016

As illustrated in the graph, in 2013 there was a higher number of degree days. Indeed, this was the coldest year, with a higher consumption of methane for indoor heating. This factor is also justified by the fact that the area of the offices was expanded, which resulted in a greater surface area for the company to heat. However, in 2014 the use of fuel plummeted. In particular, for the year 2015 methane consumption was slightly higher than for the previous year, in that lower temperatures were recorded.

Compared to 2014 and 2015, the years with the mildest winters of those recorded, 2016 required more heating, thereby increasing the degree days. In spite of these recent figures, methane consumption dropped compared to figures for the two previous years.

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Electrical Energy

The use of the artificial lighting system is subject to the measurement of internal brightness levels through crepuscular sensors. The system is computer-based.

Since 2015 it has been carried out a energetic consumption evaluation for the production area through a careful diagnosis. For this purpose, some meters were installed in the energy lines of maximum consumption and small but significant changes were made, such as switching off the machines during the lunch break and switching on the light only when strictly necessary.

The energy consumption in 2015 is therefore reduced compared to previous years.

electrical energy consumption 3.153.000 kW 3.237.000 kW 3.138.000 kW 2.624.245 kW PER YEAR INDICATOR

PER YEAR 1,064

2013

INDICATOR

PER YEAR 0,965

2014

INDICATOR

2015

PER YEAR 0,986

INDICATOR

2016

0, 861

The indicator is calculated as the ratio between the annual consumption of electrical energy and kilograms of goods shipped during the year

by Sambonet Paderno Industrie.

In 2016, the company recorded the lowest consumption of electric energy and obtained the best kWh consumed and kg-shipped ratio. Beginning in 2015, a specific assessment of consumption related to production processes was conducted with a precise energy consumption diagnosis. To this view, some meters were installed along the energy lines of maximum consumption and minor but significant changes were made, like turning off the machines during lunch breaks and turning on lights only when absolutely necessary. Indeed, a lower consumption of electric energy was recorded in 2016 compared to 2015.

Water

In the last years, the awareness of people on the importance of water as a limited resource has grown up, as they noted the increase of pollution due to the discharge of not biodegradable substances and to high temperature water coming from cooling systems.

Aware of the value of this resource, Sambonet Paderno Industrie has operated in the better rational and ecologic way as possible.

The Company keeps on monitoring water consumption, trying to reduce the waste and the water discharge. In order to reach these aims, the Company has realized its own depuration system able to recycle the water: washing waters are recycled in closed systems, as explained in the following pages, while discharged waters are checked twice a week concerning the values of zinc, nickel, iron and cyanide through specific analysis with ICP and colorimetric analysis for the definition of the cyanides.

environmental performance 02—10 second principle Adoption of a preventive approach

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S A M B O N E T PA D E R N O I N D U S T R I E S . P. A .

Water is used for two different purposes: > civil use (services, dining hall, changing room) > industrial use (for production, for cooling) Discharged waters can be divided into: > black waters (from civil use) > meteoric waters > industrial waters (for production, for cooling) In the production process water is used for the following purposes: > automatic system of galvanic silver plating > manual system of galvanic silver plating > digging and pickling process > degreasing tunnel washing system with water solution.

The silver plating system requires three washings after nickel and silver plating treatment; the first one is provided of a throwaway tank and waters will be treated in a chemical-physical system and discharged, the other two tanks are in counter-current, so that the third tank feeds the second one and this last one feeds the first; the waters of the second and the third tanks are carried in a recycle system on ionic exchange.

water flow in the silvering tanks TANK 1

TANK 2

TANK 3

The hollowing system is made of treatment tanks with nitric acid and of a series of washing tanks. The pickling system is made of a series of treatment tanks with sulfuric and nitric acids and of a series of washing tanks. The tunnel washing system requires a treatment tank in a water solution of alkaline detergent and three washing tanks: a carpet runs along the tanks. Even in this case the first washings are throwaway washings (some of the washing water is used to reintegrate the treatment tanks).

The water used by Sambonet Paderno Industrie comes from the draw-well and from the aqueduct.

It is preferably used the water from the draw-well, while the water of the aqueduct is used in by pass to provide water when the draw-well water is not enough. The refluent water is carried in a superficial water natural canal body, the irrigation ditch called Busca, located on the left side of Sesia river.

The maximum flow rate during summer is 22mc/sec, while the minimum flow rate in winter is 0.5 mc/ sec.

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S U S TA I N A B I L I T Y R E P O R T 2 0 1 6

Water Withdrawal WATER DRAWN FROM THE WELL

WATER DRAWN FROM THE AQUEDUCT

annual consumption

annual consumption

73.657 m 65.211 m 83.990 m 100.667 m

4.956 m 4.999 m 5.466 m 5.156 m

PER YEAR

PER YEAR

3

INDICATOR

3

PER YEAR 0,025

INDICATOR

3

PER YEAR 0,019

INDICATOR

3

PER YEAR 0,026

INDICATOR

0,033

3

INDICATOR

3

PER YEAR 0,0017

INDICATOR

2013

2013

2015

2014

3

PER YEAR 0,0015

INDICATOR

2014

3

PER YEAR 0,0017

INDICATOR

2015

0,0017

2016

2016

The indicator is calculated as the ratio between the annual consumption of well water and kilograms of goods shipped during the year by Sambonet Paderno Industrie.

The indicator is calculated as the ratio between the annual consumption of aqueduct water and kilograms of goods shipped during the year by Sambonet Paderno Industrie.

weekly average

weekly average

2013

2014

2015

2016

1.416 m

1.254 m

1.615 m

1.936

PER WEEK

PER WEEK

PER WEEK

PER WEEK

3

3

3

2013

m3

2014

2015

2016

95 m3

96 m3

105 m3

99 m3

PER WEEK

PER WEEK

PER WEEK

PER WEEK

annuale trend

annuale trend

20.000

800

700 15.000 600

500

10.000

400 5.000 300

200 m3

0 m3 JEN.

FEB.

MAR.

2013

APR.

MAY

JUN.

2014

JUL.

AUG.

SEP.

2015

OCT. NOV. DEC.

2016

JEN.

FEB.

MAR.

2013

APR.

MAY

JUN.

2014

JUL.

AUG.

SEP.

2015

OCT. NOV. DEC.

2016

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S A M B O N E T PA D E R N O I N D U S T R I E S . P. A .

Water Discharge WATER DISCHARGED BY THE PURIFIER

COOLING WATER DISCHARGED

annual consumption

annual consumption

12.245 m 12.164 m 12.365 m 11.839 m

54.904 m 48.097 m 63.750 m 89.644 m

PER YEAR

PER YEAR

3

INDICATOR

3

PER YEAR 0,0041

INDICATOR

2013

3

3

PER YEAR 0,0038

INDICATOR

2014

PER YEAR 0,0039

INDICATOR

2015

0,0039

2016

3

INDICATOR

3

PER YEAR 0,019

INDICATOR

2013

3

PER YEAR 0,015

INDICATOR

2014

3

PER YEAR 0,020

INDICATOR

2015

0,029

2016

The indicator is calculated as the ratio between the annual quantity of water discharged by the purifier and kilograms of goods shipped during the year by Sambonet Paderno Industrie.

The indicator is calculated as the ratio between the annual quantity of discharged cooling water and kilograms of goods shipped during the year by Sambonet Paderno Industrie.

weekly average

weekly average

2013

2014

2015

2016

2013

2014

2015

2016

235 m3 234 m3 238 m3 228 m3

1.056 m3 935 m3

1.226 m3 1.724 m3

PER WEEK

PER WEEK

PER WEEK

PER WEEK

PER WEEK

PER WEEK

PER WEEK

annuale trend

annuale trend

2.000

20.000

1.500

15.000

1.000

10.000

500

5.000

0 m3 JEN.

FEB.

MAR.

2013

APR.

MAY

JUN.

2014

JUL.

AUG.

PER WEEK

SEP.

2015

OCT. NOV. DEC.

2016

0 m3 JEN.

FEB.

MAR.

2013

APR.

MAY

JUN.

2014

JUL.

AUG.

SEP.

2015

OCT. NOV. DEC.

2015

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environmental performance 02—10 second principle Adoption of a preventive approach

S U S TA I N A B I L I T Y R E P O R T 2 0 1 6

From the tables it can be seen that water consumption has increased - in particular the use of well water - for two reasons: to irrigate the company lawns and gardens more often and to maintain the washing tunnels at full potential which, due to summer heat waves, required greater quantities of water.

Waste

The Company is responsible when it comes to recycling. A major part of products are recyclable (scrap, wood, cardboard...).

In 2015, total waste disposal decreased from the previous year by 22.39%.

When examined in detail, it’s possible to notice that non-hazardous waste disposal has increased (+7.04%), while hazardous waste has been cut in half. This result is because of the implementation of Regulation 1357/14 and the EU 2014/955 decision, which has caused a reclassification of waste, giving a EWC code to each category and consequently causing some changes. For example, activated carbon and various other washing solutions, previously considered hazardous, are now considered nonhazardous waste. There remain, however, dangerous oils, muds and oily emulsions; the latter showing a significant decrease from 2014.

Regarding non-hazardous waste, the pie charts show a decrease in paper and cardboard container disposal. This is a positive sign, considering the relationship between the tons of products in 2015 and those disposed of in the same year, equal to about 44%. In the previous year, there was a strong increase in paper and cardboard disposal thanks to the reorganization of the warehouse, leading to a series of extraordinary disposal.

There was also a decrease in tons of disposed plastic packaging, paint sludge, abrasive dust and brushes.

Looking at the charts, you can see an increase in disposal of plastic shavings and turnings, going from 8.96% in 2014 to 9.56% this past year and regarding scraps of steel, aluminum nickel silver, arriving at 43.79% caused by recovered production, but which can then be resold.

Below is the list of hazardous and non-hazardous disposed of waste from 2013-2016.

Disposed waste 77% NON-HAZARDOUS

83% NON-HAZARDOUS

90% NON-HAZARDOUS

90% NON-HAZARDOUS

23%

17%

10%

10%

HAZARDOUS

HAZARDOUS

HAZARDOUS

HAZARDOUS

315 t

485 t

377 t

377 t

2013

2014

2015

2016

S A M B O N E T PA D E R N O I N D U S T R I E S . P. A .

Non-Hazardous Waste 2016

53 %

METALS

2 9,10% 8,61% 8,44% 6,68% 0,18%

42 %

PACKAGING

4 1,75% PAPER AND CARDBOARD PACKAGING 0,15% PLASTIC AND METAL PACKAGING

5%

OTHER

3,30% 0,30% 0,26% 0,03%

53%

METALS

4 3.79% SCRAPS OF STEEL, ALUMINUM, BRASS AND NICKEL SILVER 9.56% FERROUS METAL FILINGS AND TURNINGS

45%

PACKAGING

4 4.66% PAPER AND CARDBOARD PACKAGING 0.04% PLASTIC AND METAL PACKAGING

OTHER

1.54% 0.16% 0.13% 0.11%

51%

PACKAGING

5 0.72% PAPER AND CARDBOARD PACKAGING 0.32% PLASTIC AND METAL PACKAGING 0.14% MIXED MATERIAL PACKAGING

43%

METALS

3 4.05% SCRAPS OF STEEL, ALUMINUM, BRASS AND NICKEL SILVER 8.48% FERROUS METAL FILINGS AND TURNINGS

6%

OTHER

5.43% 0.56% 0.21% 0.06% 0.03%

51%

METALS

44.41% SCRAPS OF STEEL, ALUMINUM, BRASS AND NICKEL SILVER 6.83% FERROUS METAL FILINGS AND TURNINGS

35%

PACKAGING

3 3.92% PAPER AND CARDBOARD PACKAGING 0.53% PLASTIC AND METAL PACKAGING 0.27% MIXED MATERIAL PACKAGING

OTHER

11.98% 1.34% 0.41% 0.24% 0.05% 0.01%

NOT FERROUS METAL FILINGS AND TURNINGS (AISI 304) MIXED METALS FERROUS METAL FILINGS AND TURNINGS IRON AND STAINLES STEEL COPPER SCRAPS

WASTE AQUEOUS SOLUTIONS WASTE AQUEOUS SOLUTIONS PAINT SLUDGE, ABRASIVE POWDER AND BRUSHES COMPONENTS REMOVED FROM DISCARDED EQUIPMENT

2015

2%

2014

2013

14%

WASTE AQUEOUS SOLUTIONS WASTE AQUEOUS SOLUTIONS PAINT SLUDGE, ABRASIVE POWDER AND BRUSHES COMPONENTS REMOVED FROM DISCARDED EQUIPMENT

WASTE AQUEOUS SOLUTIONS DISCARDED EQUIPMENT PAINT SLUDGE, ABRASIVE POWDER AND BRUSHES SATURATED OR EXHAUSTED ION-EXCHANGE RESINS COMPONENTS REMOVED FROM DISCARDED EQUIPMENT

WASTE AQUEOUS SOLUTIONS SATURATED OR EXHAUSTED ION-EXCHANGE RESINS PAINT SLUDGE, ABRASIVE POWDER AND BRUSHES DISCARDED EQUIPMENT COMPONENTS REMOVED FROM DISCARDED EQUIPMENT ALKALINE BATTERIES

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B I L A N C I O D I S O S T E N I B I L I TÀ 2 0 1 6

Hazardous Waste 2016 77%

SLUDGES

7 7,25% SLUDGES FROM ON-SITE EFFLUENT TREATMENT

23%

OTHER

18,44% EMULSIONS AND SOLUTIONS FOR NON-HALOGENATED MACHINERY 2,37% WASTE MACHINING OILS FREE OF HALOGENS (NOT EMULSIFIED) PACKAGING CONTAINING RESIDUES OF SUBSTANCES OR

CONTAMINATED BY SUCH SUBSTANCES 0,17% TRANSFORMERS AND CAPACITORS CONTAINING PCB 0,12% FLUORESCENT TUBES AND OTHERS WITH MERCURY 0,09% ABSORBENTS, FILTERING MATERIALS, RAGS, PROTECTIVE CLOTHING CONTAMINATED BY HAZARDOUS SUBSTANCES

86%

SLUDGES

8 5.96% SLUDGES FROM ON-SITE EFFLUENT TREATMENT

2015 14%

OTHER

81%

SLUDGES

9.76% 2.59% 0.76% 0.72% 0.21%

WASTE MACHINING OILS FREE OF HALOGENS (NOT EMULSIFIED) SPENT ACTIVATED CARBON LEAD-ACID BATTERIES DISCARDED EQUIPMENT CONTAINING HAZARDOUS COMPONENTS WASTE PAINT AND VARNISH, PROTOTYPING MACHINE LIQUID, SAWDUST IMPREGNATED WITH OIL, ABSORBENT MATERIALS (FILTERS), FLUORESCENT TUBES AND OTHERS WITH MERCURY

2014 19%

2013

78% 22%

OTHER

SLUDGES

OTHER

81.20% SLUDGES FROM ON-SITE EFFLUENT TREATMENT 8.71% 7.72% 2.01% 0.26% 0.11%

EXHAUSTED OIL EMULSION SPENT ACTIVATED CARBON WASTE MACHINING OILS FREE OF HALOGENS (NOT EMULSIFIED) DISCARDED EQUIPMENT CONTAINING HAZARDOUS COMPONENTS WASTE PAINT AND VARNISH, PROTOTYPING MACHINE LIQUID, SAWDUST IMPREGNATED WITH OIL, ABSORBENT MATERIALS (FILTERS), FLUORESCENT TUBES AND OTHERS WITH MERCURY

7 5.61% SLUDGES FROM ON-SITE EFFLUENT TREATMENT 11.43% 7.33% 1.46% 1.22% 0.48% 0.13%

SPENT ACTIVATED CARBON EXHAUSTED OIL EMULSION ORGANIC WASTE CONTAINING HAZARDOUS SUBSTANCES WASTE MACHINING OILS FREE OF HALOGENS (NOT EMULSIFIED) LEAD-ACID BATTERIES WASTE PAINT AND VARNISH, PROTOTYPING MACHINE LIQUID, SAWDUST IMPREGNATED WITH OIL, ABSORBENT MATERIALS (FILTERS), FLUORESCENT TUBES AND OTHERS WITH MERCURY

The Company carries out the separate collection with sense of responsibility and, in addition, most of the waste is recyclable (scrap, wood, cardboard). Sambonet paderno industrie promotes every year investments aimed to reduce the production of waste, such as replacing wooden pallets with plastic ones, which are stronger and more easily reusable, or purchasing cardboard shredder machines, to reuse the material as packaging.

S A M B O N E T PA D E R N O I N D U S T R I E S . P. A .

Packaging

The parcel, that is the primary packaging containing the finished product, is made of cardboard punched boxes, put on a plastic or wooden pallet (europallet), in order to facilitate moving. The parcels, properly piled up, are tied to the pallet through plastic strap string then wrapped in extensible film.

The materials chosen for the product packaging are completely recoverable. They are not contaminated by substances which require draining before use and they can support different compaction which optimize picking up and transport. Consequently the environmental impact is not significant and this aspect is not considerable.

For Sambonet Paderno Industrie the packaging represents one of the main and most efficient channel of communication between the Company and the customers, besides performing the important function of protect the products. The packaging provides all the essential information concerning the raw material used for the manufacturing of the items, their use and maintenance, and has a basic role in design and in the appeal able to attract the customers.

The pallets used by the Company are made both of wood and of plastic, although the wooden ones will be replaced by the pallets made of plastic. These new pallets are more light, more resistant and can be used different times, so they are more lasting and they have less impact on the production of waste.

43,548 Euros were spent in 2012 to buy 4,500 plastic pallets.

The factory warehouse in Orfengo

Waste finished product

The finished products don’t have any features able to represent any sanitary or environmental risk, as they are made of inert material. The use of these products does not involve any problems for the safety of the users and the product disposal carried out by scrapping does not involve any problems about the separation as these items are inert material too. So there are not considerable elements concerning the use and the disposal of finished products.

Concerning the electrical equipment, the Company has carried out a subscription to APIRAEE, in compliance with the WEEE legislation (D. Lgs 25/07/2005 n151), with subscription number: IT09070000006180 of 24/07/2009.

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S U S TA I N A B I L I T Y R E P O R T 2 0 1 6

03—10 third principle

Efficient use of natural resources Sambonet Paderno Industrie continuously strives to reduce its energy consumption and takes measures mainly intended to optimise its business processes. For this reason, the Company undertook a path which led to the obtainment of the new UNI ISO 50001:2011 energy certificate. The Company has adopted a comprehensive approach in every manufacturing department to identify solutions allowing the reuse of resources.

The following table shows changes in thermal and electrical energy consumption for production purposes in 2012, 2013, 2014 and 2015.

Energy consumption 2013

2014

2015

2016

ELECTRICAL ENERGY

-8%

+1%

-3%

-3%

THERMAL ENERGY

+16%

-16%

+3%

+3%

The Company always aims to avoid waste in all areas of the plant and its attention is focused on their continuing minimization. Quarterly reviews are organized to define improvements. In the plant there is an Energy Supervisor who weekly verifies any possible overconsumption and shares optimization plans with the staff.

Materials

The Company resources have been focused on the minimization of the amount of raw materials used in the industrial process. Sambonet Paderno Industrie uses, as main raw materials, materials with low contents of energy and with reduced presence of dangerous substances, as stainless steel, nickel silver and aluminum, and pays always more attention to the materials of the products sold. Furthermore, designing a new item, the Company evaluates the aspects of shape and thickness of the components which are intended to be utilized in the production in order to reduce the volume of the materials used.

In the choice of the raw materials, the Company considers the use of recycling materials as a surplus value.

Sambonet Paderno Industrie promotes the Product Lifecycle Management (PLM), a strategic approach to the management of information, processes and resource management, from the first design phase to the moment of its launch into the market or of a possible withdrawal.

To give an example, aluminum wastes are re-sold to the supplier of the raw material, who manages to reintroduce it in the working process and in the market.

environmental performance 03—10 terzo principio Efficient use of natural resources

S A M B O N E T PA D E R N O I N D U S T R I E S . P. A .

Water resources

The water consumption is checked by monitoring and rationalizing the water used for the supply chain, concerning washings in particular. In the departments there are five washing tunnels properly conceived to save water: “new” water is required only for the final step of the washing. The discharge of this water containing traces of cleaning agent feeds the previous step, which discharge, that contains more detergent of the first one, at its turn feeds the previous step and so on, recycling the water till the last step, in which the discharge is channeled to the purification plant.

The purication plant provides two types of treatment, one for the water recycle and the other one for water disposal.

Recycling waters will be sent to a system with a flow of 20 m3/h (2,000 L) where they suffer a treatment on resin at ionic exchange (cationic resin, anionic thin resin, anionic strong resin). The plant has been organized in double line to guarantee the continuity of the process, and it receives and resupplies washing waters of silvering system (automatic and manual ones), of tunnel washing system (of Holloware-Cookware, Flatware, Checking Department) and of the hollowing and pickling process.

The waters to be discharged are conveyed towards a system with lower flow (5 m3/h) and they are submitted to a chemical-physical depuration treatment that requires the following steps: > oxidation of cyanides with sodium hypochlorite; > post-Oxidation of cyanides with oxygenized water; > oxidation of Fenton with iron 2 salts and oxygenized water for the dust lying of organic substances; > coagulation with iron salts 2 to facilitate the formation of precipitate; > neutralization with hydroxide of calcium to dust lying metals through hydroxides precipitation; > flocculation with polyelectrolyte; > decantation of sediments; > final filtration on sand-quartzite and activated charcoal.

The plant works on the refluent of the silvering (both automatic and manual), the washing tunnel and the hollowing and the pickling processes.

Energetic Resources

The Company believes in clean energy and it has demonstrated this with the choice of its electrical energy suppliers. Indeed Sambonet Paderno Industrie has a single electric energy supplier that has been awarded the CO-FER certification, testifying to the use of renewable energy sources for ICOFER electricity production plants.

The CO-FER title is a certification, issued by the GSE (Energy Services Manager), certifying renewable origin of sources by the qualified plant ICO-RES for electricity production.

Following approval by MiSE for the “Procedure for the identification of plants powered by renewable sources and the issuing and managing of the Garancy of Origin (Technical Procedure)”, drawn up by the GSE as stated in article 31, paragraph 1, of the ministerial decree of July 6, 2012, from 2013, GSE issues the Guarantee of Origin (GO) instead of the CO-FER title to certify the quota of electrical energy produced by renewable sources, in accordance with article 15 of the directive 2009/28/CE. The electrical energy supplier is CVA Trading. From January 1, 2014, following a merger with the Vallenergie company, which was already a part of the CVA Group, CVA Trading became the service operator of the territorially competent Maggior Tutela. Its energy comes 100% from renewable sources.

To increase the efficiency and reduce waste of the cooling and heating systems, the Company has installed a system of fan coil unit. The fan coil unit draws the air of the environment (to be cooled or heated), the air is filtered and then pushed towards the battery of thermal exchange. In the offices

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S U S TA I N A B I L I T Y R E P O R T 2 0 1 6

built in 2012, heat collectors have been added to try to maintain temperature of the air before putting it outside in order to use the heat to pre-heating the air flow in entrance. This air flow exchanges the heat accumulated with the water through a forced convection: in case of heating, the heat will be drawn, while in case of cooling it will be given. When cooling air, this air will be also dehumidified, creating a condensation which will be collected in the small basin put on the bottom.

Both electric and heating systems are completely managed by a monitoring system. Thanks to this system, the unused offices will not be lighted and heated. Furthermore both lighting and heating systems are turned off during the Company closing. Each workplace is provided with a thermostat controlled by the supervising: a sensor registers the environmental temperature and manages to maintain the correct temperature.

The lighting system also includes high-efficiency elements: the whole corporate plant is equipped with twilight sensors that automatically switch lights on and off based on natural light.

The oldest buildings were realized just in 2001 and have been equipped with heat insulation walls.

04—10 fourth principle

Monitoring and reduction of environmental impacts Sambonet Paderno Industrie constantly invests in monitoring and reducing environmental impacts.

The Company did not have to implement a biodiversity mapping system at the operating sites through specific measures (eg. protection of endangered species habitats, protection of water resources and forests, etc.) since it is situated directly on the regional road (N.11), Padana Superiore, which connects Novara to Vercelli. Just a couple hundred meters away is the entrance for the A26 Voltri-Gravellona Toce highway. It is situated 30 meters off of the regional road. In the open space between the road and the plant there is a 5,850 mq recreational area used for sports fields and public parking.

Wastewater

Discharged waters coming from the purification plant are subjected to a constant monitoring: the PH and the temperature parameters are checked and corrected, if necessary. The presence of metals in the discharged waters is monitored by means of weekly internal analyses and quarterly analyses performed by external laboratories. In 2011 the Company invested in the set up of a new internal laboratory, buying last generation instruments in order to make different kind of tests. In particular, the Company bought an ICP for the analysis of the metals, which allows to quickly test the discharged water. Twice a week the technician of the laboratory collects the samples of the waters from different points of the purification plant and from the final discharge and he carries out the tests, entering the results.

The Company is proud to communicate that in November 2013 the internal laboratory ASEC Lab obtained the accreditation by Accredia, the Italian Accreditation Body. Accredited testing methods also include the analysis of wastewater, providing an additional guarantee in wastewater control.

environmental performance 04—10 fourth principle Monitoring and reduction of environmental impacts

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S A M B O N E T PA D E R N O I N D U S T R I E S . P. A .

Production

Sambonet Paderno is a metalworking company that also performs welding operations. An example of investment within this strategy is the purchase of a zero impact welding machine, which is supplied by a water electrolysis system. Water is decomposed into oxygen and hydrogen, i.e. a gas mixture obviating the need for tanks of pure elements. The mixture of oxhydrogen burns at high temperatures and generates water vapour, thus marking the end of a cycle with no environmental impact.

Turnover index

The inventory turnover is the number of times inventory is used in a time period (usually a year), allowing the Company to recover the financial resources invested in inventory. It is calculated as the ratio of the value of goods sold to the average inventory value.

Inventory turnover is useful not only to monitor orders for low-turnover inventory, but also to prevent wasting manufacturing resources. A careful stocks managing allows to plan production in a responsible way. In order to raise the level attention on this issue, monitoring inventory turnover of finished goods was included in the 2012 performance related pay, the target being 1.85. In 2012 its value increased from 1.62 to 1.75, testifying to the effort made to schedule manufacturing and purchases wisely. As shown in the table below there is an ongoing positive performance in relation to this aspect.

Year

Turnover index

2013

1,84

2014

1,85

2015

1,85

2016

1,50

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S U S TA I N A B I L I T Y R E P O R T 2 0 1 6

05—10 fifth principle

Focus on innovative technologies

Terra.cotto cookware (on top) and Linea Q bamboo tray (bottom).

Even designing the new buildings in 2001, Sambonet Paderno Industrie made a choice oriented towards innovation, both in the use of renewable energy, and in the use of investments aimed to obtain a greater energetic efficiency, through the technologies above mentioned (inverter system and timers for automatic switching off, system of intelligent lighting and insulation for heat dispersions).

The Company has decided to invest in the production of items embodying innovation and highlighting the energy and environmental features of the raw materials used.

In 2012 the Company presented its first eco design collection which uses a composition of bamboo fibre, an innovative material, eco-friendly and biodegradable and, in 2013, introduced a cookware series entirely in terracotta. The ecological and health-conscious soul, the basis of this collection, is developed in all its forms, from the product to the packaging.

06—10 sixth principle

Product stewardship As pointed out in the introduction, Sambonet Paderno Industrie effected an analysis of environmental aspects relating to the different product life cycle phases through the use of renewable and recyclable materials, the attention to the requirements of durability, easy maintenance, interchangeability and standardization in design. Each product is equipped with information material on proper use and proper disposal.

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S A M B O N E T PA D E R N O I N D U S T R I E S . P. A .

07—10 seventh principle

Production chain stewardship According to the aim to develop a responsible business model concerning the production process and the subjects involved, Sambonet Paderno Industrie applies precise methods of products and services supplying. Every Company partner is considered according to the Company own Environmental Management and will be invited to share the Paper of Principles.

In 2001 the Company also set out a code of conduct for suppliers and sub-suppliers (Code of conduct for external manufactures and workshops) in order to convey its values throughout the supply chain. The Code was based on some criteria requiring suppliers to run their business from an ethical, responsible and environmental-friendly perspective and to treat all the workers involved in the supply chain properly.

The purchasing procedures favour sustainable products as well (Green Procurement).

The Company has further implemented the use of telecommunications for remote activities, thus reducing the need for travels.

As a result, there has been a growing use of > video conferences; > distance training; > telework systems; > certified email.

Furthermore there have been bought new servers for the Company in order to implement a new system of data storage. The Company has been using three NetApp machineries. Able to generate a consumption that is independent from the quantity of servers used, that is an innovative solution compared to the previous ones. In fact all the data are managed in a virtual environment where it is possible to create, manage and cancel any server in a simple way, if necessary.

Technical sheets of the storage show are complete concerning consumptions, giving a precise indication of the consumption in Watt (W) of both the models of NetApp, two FAS3140 and one FAS2040.

Model FAS 3140 FAS 2040

Single power supply

Double power supply

Maximum

Power, W

291

581

712

British Thermal Unit, BTU/hr

991

1.981

2.427

Power, W British Thermal Unit, BTU/hr

447 1.524

464 1.582

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S U S TA I N A B I L I T Y R E P O R T 2 0 1 6

environmental performance 07—10 seventh principle Production chain stedwardship

Even taking into examination the worst scenery with the maximum consumption for all three storage, there will be a total consumption of 1.888 W, always under the threshold of 2 kW. All consumptions have been taken into consideration with feed 200-240 VAC. Both the models of NetApp used comply with different standard of security and emissions, here below listed:

FAS 3140

Safety: EN 60950, CE, CSA 60950, UL 60950, CB IEC60950-1 (all national deviations), EN60825-1, GOST-R Emissions / Immunity: FCC Part 15 Class A, ICES-03, CE, BCC, VCCI, AS/NZS CISPR 22, EN55022, EN55024, EN61000-3-2, EN61000-3-3 Safety: EN 60950, CE, CSA 60950, UL 60950, CB IEC60950-1 (all national deviations), EN60825-1, GOST-R, BSMI CNS14336, CCC GB 4943-2001, SABS, S Resolution 92-98

FAS 2040

Emissions / Immunity: FCC Part 15 Class A, ICES-003, CE, MIC, VCCI, AS/NZS CISPR 22, EN55022, EN55024, EC61000-3-2, IEC61000-3-3, CoC (South Africa), BSMI, KN22 EN61000-4-2, EN61000-4-3, EN61000-4-4, EN61000-4-5, EN61000-4-6, EN61000-4-11, KN24, CISPR 24

Before adopting this NetApp system, there was a “Blade server” of HP type “HP BladeSystem C7000 Enclosure” which produced a very high level of consumption compared to this new one: the consumption in domain of three-phase power was 2.250W-2.400W for each phase, with a total of 6.750 -7.200W. It was about three times superior towards actual consumption.

Currently there are 35 virtual servers active on the NetApp systems. Assuming they were 35 physical PC with 500 W power supplies (although in reality a server consumes more than a normal PC), the total consumption would be 17.500 W, equal to almost nine times the current consumption.

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08—10 eighth principle

Awareness raising and training The Company believes in the involvement of human resources on environmental sustainability objectives.

The instruments adopted to achieve this aim are awareness raising and training, through frequent meetings throughout the year; delivery of the business system policy in the payroll of December 2014 and posting this policy in all corporate pin boards.

During the year, following a schedule agreed with the managers of the various areas, introduction of legislative changes, employee awareness raising, integration of new employees and/or changes in duties are accompanied by appropriate corporate training. This effort results in constantly monitoring and recording every stage of the process and the efficacy of training on every employee.

Employees

Total training hours

Training hours per employee

2013

257

2.900 h

11,3 h/

2014

270

3.334 h

12,3 h/

2015

265

6.189 h

23,4 h/

2016

281

5.815 h

20,7 h/

person

person

person

person

Human resources are monitored during the course of their activities and encouraged through specific lines of the pay bonus. The Company’s main goal is to create a corporate culture that actually takes into account sustainability and environmental protection.

As of December 31, 5815 hours of training were carried out.

The trend is positive, considering that the total hours planned for 2016 were approximately 3500 hours, a much lower number than those actually carried out. Considering the increase in the work force for 2016 (16 new hires), a slight drop of 6.43% was recorded in the total number of hours dedicated to training in 2015.

The training that took place during 2016 dealt mainly with the corporate certifications (environment, quality for upgrading to meet new standards) and, in particular, workers’ health and safety, in which all employees were involved. For example, a course on work-related stress was organised.

The positive trend related to hours of training is therefore confirmed and emphasises the attention that the company pays to this topic.

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09—10 ninth principle

Transparency with stakeholders The promotion of its own environmental eco-sustainable policy is managed by drafting reports and environmental declarations and by drawing up the Sustainability Report.

A positive role in the community: the Company’s commitment to environmental values and local communities is put into practice with job creations, benefits for local suppliers, distributors and points of sales and the re-use and re cycling of packaging materials.

The Company’s interests are tightly related to the ones of the communities where it works and it is involved in, in quality of employer, customer, supplier and contributor at the same time. The Company considers the sustainable development as the main pillar to build a continuous process of improvement able to guarantee the increase in the Company economic performance. A growing up and well managed activity has a positive impact on the general economic development as it creates new workplaces, gives an economic contribution and assures greater investments in the communities and in the local economies.

Concentrating on its business and the local community, Sambonet Paderno Industrie has decided to focus its efforts on responsible consumption, local community investments and environmental safety. When it comes to supporting the local community, Sambonet Paderno Industrie fully embodies the vision that relates to its philosophy of Italian industry springing from a supportive spirit. Making a positive contribution is the goal in order to improve the quality of life in the surrounding communities. The Company makes the minimization of environmental impact during production a daily commitment.

S A M B O N E T PA D E R N O I N D U S T R I E S . P. A .

10—10 tenth principle

Consistency with international policies Sambonet Paderno Industrie acknowledges the value of constructive collaborations with its suppliers in order to secure high-quality raw materials.

Once the suppliers are selected, they are involved in collaborative programs and, if necessary, support programs, through the transfer of technology and know-how in the environmental field. This is realized through the participation in updating events on process and product innovation and in development projects about environmental issues.

Transparency and ethics

By establishing transparent and ethic relationships with its suppliers and stakeholders as far as business is concerned, Sambonet Paderno Industrie implemented its Code of Ethics back in 2011. The adoption of clear guidelines has contributed to define and promote the values and the behavioural rules the Company deems fundamental for its conduct.

Organisational model

Sambonet Paderno Industrie has decided to comply with the dispositions of D.Lgs 231/01 which regulates the “Administrative Responsibility of the Company” to enforce the system of internal control, and in the meantime increase the resources awareness about the above mentioned topics in order to prevent crimes.

Sambonet Paderno Industrie has adopted a specific “Model of Organizing, Management and Control ex D. Lgs 231/2001” as a complete set of rules aimed to regulate the internal working of the Company, the internal control and the ways the Company reports with external. One of the most significant part of this Model is the Ethical Model, that identifies the values pursued by the Company and points out the whole set of rights and duties of the people working in the Company or with the Company. Furthermore the Code promotes an elevated standard of internal professionalism and interdicts any behaviour which is in contrast with the rules and the values of the Company. Each employee, from the administrators to the staff management, the office workers, the sales representatives, the consultants, the suppliers and the commercial partners, and all the people working in collaboration with the Company have been asked to respect the Code and its contents.

Sustainable development

The Company has adopted an approach of sustainable development based on strategic priorities. Sambonet Paderno Industrie thinks that the most important contribution towards the society is the production of high quality items, which the consumers are able to identify and appreciate.

Besides that, the Company pursues many other aims: creating new workplaces, contributing to the general taxation, increasing human capital showing how the growth in business and the sustainable development could feed and enforce themselves each other.

The Company approach to sustainability represents a responsible attitude and produces positive effects in business in terms of profit and economic growth. That’s why it is considered as a significant pillar of the Company’s philosophy and guides all its activities: from the choice of raw materials to the finished product.

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Human rights

A culture of openness has been promoted within the Company with a view to prevent any form of discrimination in respect of employment and occupation and to ensure that all employees are valued and treated with dignity. The Company has also committed to create a safe working environment for the people.

In 2006 Sambonet Paderno Industrie has obtained the certification according to the standard OHSAS 18001: this certification gives an evidence of the commitment in respecting the requirements of health and safety at work, even more strict compared to the requirement provided for by Italian law. Sambonet Paderno Industrie constantly aims to increase the level of health and safety on the workplace through the definition of targets that can be reached.

Embracing this ethic, the Company achieved the injury rates presented at the following page.

Injuries

2013

2014

2015

2016

Total number of injuries Total days of injury Average injury duration (days) Average age of injured Frequency index (I.F.) Severity index (I.G.) Incidence index (I.I.)

3 158 52,70 38,30 0,66 0,34 0,01

1 8 8,00 38,00 0,21 0,02 0,00

4 77 19,30 49,50 0,88 0,17 1,51

3 182 60,60 45,60 0,65 0,40 1,07

I.F. = (total number of injuries * 100,000) / hours worked I.G. = ((total days of injuries + (sum of annuity rates * 75)) * 1,000) / worked hours I.I. = total number of injuries / number of employees

Overall, the indicators show an improvement trend, considering increase in personnel.

The risk of accidents in the workplace were assessed according to the legislation in force (Italian Legislative Decree 81/08) and the situation can be considered under control.

In 2016 three accidents took place for an overall duration of 182 days.

It should be pointed out that the Frequency Index was equal to 0.65, the Severity Index was 0.40, and the Accident Incidence Rate was equal to 1.07%.

This result must be compared with the sector Accident Incidence Rate provided by the INAIL (Italian Workers’ Compensation Authority) database. As the table below illustrates, the percentage is equal to 1.35% for 2013 and 2.19% for 2014; instead, in 2016 the company obtained an Accident Incidence Rate of 1.07%.

Year

N. of injuries

N. of employees

Incidence index

2013

8

593

1,35

2014

13

593

2,19

Table with data provided by the INAIL database, referred to the entire national territory and for the specific business sector (Ateco category C 25710).

environmental performance 10—10 tenth principle Consistency with international policies

S A M B O N E T PA D E R N O I N D U S T R I E S . P. A .

Concerning health and safety at work, Sambonet Paderno Industrie commits itself to: > Working in compliance with the laws, the rules and the applicable national and community directives, as well as with all the requirements and the obligations undersigned by the company to the stakeholders; > Sharing the policy about safety with all the employees and the stakeholders; > Introducing and keeping updated the procedures of management and security in order to monitor health and safety of the employees; > Developing programs, objectives and targets and investing in human and economic resources in order to reach these goals; > Increasing awareness and training involving all the workers, making them aware of their individual duties and of the importance of each action to reach the aims and of their responsibilities concerning safety and health in workplaces; > Managing to define behaviours and working procedures in order to reduce accidents at work and occupational disease; > Identifying and monitoring dangers related to the different activities located inside the plant and valuing the risks for the health and the safety of the workers; > Evaluating pre-emptively the risks for the health and the safety at work related to organizational, technical and procedural changes; > Making suppliers more aware and ask them to respect this policy, the laws and the procedures concerning the safety; > Trying to promote continuous improvement concerning the management of safety and health at work; > Increasing workers awareness and giving them a sense of responsibility at all levels, even through training and sharing information; > Promoting a cross communication among all the different roles in the company, in order to improve the performance of the management concerning safety and health at work; > Promoting and stimulating the dialogue based on the collaboration with the civil society, the local offices, the trade associations, the competent authorities and the stakeholders and everyone interested, in order to let everyone know the way the company operates concerning the safety and the health at work; > Periodically re-examining the evaluation of the risk regardless of the occurred changes; > Periodically making a re-examination of this policy and of the management of the health and the safety at work to verify and assure their congruence, propriety and being properly applicable the organization, as well as to verify the effectiveness of their performances and let the company promote a re-formulation of the targets for improvement.

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social performance

Service efficiency has increased as well as customer involvement in the sharing of the social value of the service.

With this awareness, the Group has carried out many sustainable projects and many more are being planned for the future.

External stakeholder

Sambonet Paderno Industrie’s significant commitment to the development of initiatives regarding stakeholder involvement is a structural element within the modus operandi.

From the opening of the company’s production site to customers, to communications initiatives aimed at new groups, not to mention important charity operations and many other media initiatives, including the publication of this sustainability report, the intention of the Group is to put its best foot forward, attesting to its humane profile and ethical code of conduct, aimed at safeguarding the environment and improving the quality of life in general. This social responsibility program is further confirmed - since January 2016 - by the SR10 certification obtained by the company, which defines the company’s objective requirements of a “Management System for Social Responsibility”.

Some projects during 2016: > TRAINING FOR STAKEHOLDERS Over the course of 2016, 65 clients visited the factory. They had the opportunity to see the production site. This activity was carried out with a spirit of collaboration by the managers in order to be able to provide customers with glimpse into the production process and creation and improvement of its products.

Over the years, several projects were carried out to involve the community, schools and support sociopedagogical institutions. For example, the “Progetto Scuole” worked with the ICIF-International School of Italian Cuisine. This resulted from a partnership between the Institute and the Company tied to Paderno kitchen supplies. Throughout the year, the school made nine visits – on a total of 200 students – during which the entire production cycle was explained and demonstrated while visiting all departments on site. During the year 2017, the company intends to continue its collaboration with the Institute with a view to hosting the greatest number of chefs and future chefs possible and undertaking new forms of collaboration. This training plan gave rise to a very interesting storytelling project on the web entitled #RaccontiamoSambonet - or #TalkingAboutSambonet. Through a series of appointments on the website and on social profiles, the company has offered an overview that, department by department, has touched upon all the phases planned. From the equipment to the warehouse, from quality control to electroplating, from mechanical production to assembly, passing through the Style Centre and internal chemical laboratory, the protagonists of the company have told their stories and explained how products come to life. A fascinating voyage for anyone curious to discover the secrets of everyday objects. > FIDELITY SERVICES Sambonet Paderno Industrie has begun promoting some customer fidelity initiatives through its own website. One example is the “Invite a friend” initiative that, through the involvement of their own registered online shoppers, conveys discount coupons for forthcoming online purchases. > COMMITMENT TO CHARITIES Solidarity with the local territory and its community has been manifested through various contributions to schools, associations, local groups and parishes. In addition to the local charity operations, in 2016

S A M B O N E T PA D E R N O I N D U S T R I E S . P. A .

Sambonet Paderno Industrie renewed its participation in fund-raising initiatives like the “Gala of Fashion for Children”, in collaboration with the Soleterre association to benefit the International Programme for Paediatric Oncology sustained by the association, and Convivio Milano. By supporting Anlaids, the event reached its 12th edition, representing one of the most recognised charity events in Italy, involving the world of fashion, design, and art to obtain funding for research and the fight against HIV. > DEVELOPMENT AND PROMOTION OF THE TERRITORY From solidarity with art to support of local communities. On 11 June, company personnel from all departments and offices met with Management in the presence of Kengiro Azuma and the press and local authorities for the inauguration of the artist’s “MU 141 – La Vita Infinita” (Infinite Life) sculpture at the production site. This event marked the company’s sense of belonging and participation in the Italian cultural panorama, as well as the enhancement of its own territory.

2016 was also the year when the Municipality of Casalino dedicated the naming of the access road to the company’s production site to Giovanni Coppo, father of the company’s owners, who died in 1999. It was Giovanni Coppo who began with a simple mechanical workshop and during the late 1970s laid the foundation for an industry that today has become one of the leading international groups in table settings and professional kitchens, a symbol of Italian design and excellence worldwide. The plaque was installed in the presence of authorities, including the prefect, the President of the Province, and the Mayor of Casalino, as well as the 270 employees who work in the plant.

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social performance contribution to the quality of Made in Italy in the world.

The initiative, the vision, and the success of the Group and its founders have earned the honour of “Cavaliere del Lavoro” (Order of Merit for Labour) for Pierluigi Coppo, decreed by Italian President Sergio Mattarella during the celebration of the Italian Republic on 2 June. This success positions Sambonet Paderno Industrie among the Italian companies capable of representing the value and excellence of the industries “Made in Italy” worldwide.

Combined with its Italian essence, the Group’s international aspirations even led Mr. Coppo to intervene during the second edition of the convention entitled “The revolution in the design industry – new trends and players that are changing the sector”, organised by the most important fashion, luxury, and design consulting company - Pambianco - in collaboration with Elle Decor. On this occasion, the Chairman was invited for a face-to-face interview with the Italian journalist Enrico Mentana, to retrace the growth and development of the Group, in particular with reference to the acquisition of various brands.

Along with this recognition – as part of the Confindustria “Premio Imprese per la Sicurezza 2016” – Sambonet Paderno Industrie received special mention for their widespread efforts made to promote the excellence of Total Safety Management at their foreign production units in France and Germany.

Yet another demonstration of the Group’s determination to always improve and guarantee the highest levels of safety.

S A M B O N E T PA D E R N O I N D U S T R I E S . P. A .

Internal stakeholder The Sambonet Paderno Industrie Group orients its actions towards those human resource management principles that acknowledge the importance of the individual within the organisational system and that believe that the personal involvement of an employee is essential for optimising the integration between corporate objectives and employee expectations.

During the planning for the construction of the current production site, areas dedicated to workers were a priority, including an internal gym with a personal trainer on whom employees can rely for their training sessions and a multi-purpose field that can be reserved for other sport activities. Internal communication and corporate software are at the basis of all the projects that the Company has developed and implemented, with a view to enhancing the internal flow of information.

Some of the projects introduced over recent years include:

Intranet. An internal network used by the company that makes it possible for different operators to share files, thereby facilitating internal communications.

News and Newsletters. Newsletters are published monthly on our website to report all the main

news about the Company, fairs, products, design, catalogues and collaborations among the different brands of the Group.

Widespread brain-storming. During the month of February 2016 an important meeting was

organised among all the employees interested in making their own contribution to the marketing department. This brainstorming session analysed the social approach and the company e-shop, giving rise to a discussion among colleagues interested in social networks and e-commerce, thanks to which useful new ideas about how to establish the corporate website strategy and functionality, arose.

“The idea is yours, safety for everyone”. This is the title of the new project introduced during the year that has offered employees the opportunity to make their contribution to improve the health, safety, and environment in the workplace. By using little boxes set up in common areas, the company has established the objective of collecting the comments of their collaborators.

Greetings from the Management. For the winter holiday season, the Management wanted to

wish a Merry Christmas to all the employees by organising a brief moment during which they could all share a toast as well as the results of the past year. The Company, as usual, thanks their personnel by offering a festive Christmas lunch on the Friday before the holidays.

Open day for families. For the third consecutive year, on 17 December, the Company opened its doors to the friends and relatives of their employees. A turnout of 380 people participated: nine groups were able see the entire production cycle, visiting all the departments of the corporate site.

Tester Chef. Now in its third edition, this initiative makes it possible for our employees involved in testing, to review the products after having used them. This procedure makes it possible to contribute with their own point of view and offer new ideas for making constant improvements in company production.

Conventions. The year 2016 demonstrated that it is possible to accomplish the intentions of the

company to “network” with other local excellences and national partners. Indeed, recently special agreements were signed to offer employees special purchase conditions but, for the future, Sambonet has established the foundation for expanding partnerships, transforming them into actual co-marketing operations.

New services. In collaboration with companies adjacent to their own production site, Sambonet

Paderno Industrie has evaluated the possibility of introducing a shuttle service for its own workers.

By using little suggestion boxes set up in common areas, the company has established the objective of collecting the observations and desires of their employees.

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