Tellure Rôta 2019 Sustainability Report

SUSTAINABILITY REPORT 2019

Dear All, Thanks to the contribution of castors sales in waste containers sector, revenues grew by 6.8% in 2019, the highest increase over the last four years.

My siblings and I express a personal and heartfelt thanks to all of you: collaborators, customers, agents and suppliers. Your continuous commitment which was crucial for the results achieved in a very challenging year characterized by: • uncertain international and national economic situation, • unstable demand, • increasingly customized needs of products and services, variability of order types and volumes.

• The improvement of our organization requires investments which are planned for 2020: they will allow us to strengthen employees and customers satisfaction and continue Tellure Rota’s positive trend.

At the moment when this report is completed, we are tackling the health emergency. The restrictive measures imposed by the government have been activated to address and contain the spread of COVID-19. In a matter of a few weeks we had to thoroughly analyse the situation, change our habits and approach to work.

I would like to thank everyone for the collaboration demonstrated, for the daily commitment in this difficult moment, for complying with new security measures and, at the same time, guaranteeing business continuity.

The psychological impact that this emergency had on each of us may be disorienting, but as it happens in critical moments, we always find within ourselves the strength to recover, overcome difficulties and begin to think about how to rebuild our own future.

We, as citizens and as members of a company, are all called to adapt to this new situation. Therefore, establishing and believing in a new and better future and doing the best we can to make it happen is Tellure Rôta’s commitment as well as a true wish to all of you.

Thank you Emanuela Lancellotti

Contents Highlights of 2019

4

Tellure RĂ´ta and UN 2030 Agenda

5

1. Company profile

6

Our values

7

Milestones

8

Who we are

9

Certifications

10

Code of Ethics

11

Sustainability Policy

12

Sustainability Report

13

Sustainability and Innovation networks

13

2. Economic Sustainability

14

Results for 2019

15

Turnover and sales volume

16

Production and distribution of value added

17

Investment

19

Research and development

19

3. Environmental Sustainability

20

Consumption of raw materials

21

Management of energy

22

Production, management and re-use of waste

23

Consumption of water and fuel for transportation

24

Greenhouse gas emissions

25

4. Social Sustainability

26

Employees

27

Traning and safety

29

Communications

30

Suppliers

31

Community engagement

32

Our commitments 2020

33

Tellure RĂ´ta and the GRI (Content Index)

34

Methodological note to the 2019 Report Questionnaire

36 37

4

Highlights of 2019 6.8% 5,986,000 79 11,035,000 â‚Ź 163 98% 1,564 5.3%

Sales

Number of items

Countries where the company distributes

Value added

Employees

Employees with permanent contracts

Hours of training

CO2 reduction

98%

Reduction in raw material consumption not dangerous

53%

Suppliers within 100 km

5

Tellure Rôta and UN 2030 Agenda SDGs

Tellure Rôta took these 10 SDGs as a reference and identified the main actions carried out and their results.

Action take

Results achieved

Corporate welfare services to increase the purchasing power of employees.

Purchasing discounts with 10% off the shopping bill of Conad and Welfare Card of Municipality of Modena.

Investment in health and safety in the workplace.

Management system certified OHSAS 18001 and over 286,000€ invested in health and safety at work, equal to 1,750€ per person. Emergency lighting remaking in S2 and S3.

Provision of training to employees.

Total of 1,564 hours of training delivered, equal to 9,6 hours per person.

Collaboration projects with schools and Universities.

3 internships and 4 company visits involving local school students.

Improvement in energy efficiency.

IIntroduction of a system for monitoring energy consumption and replacement of LED illuminated bodies outside the plants.

Increase in the value added generated and distributed.

Total gross value added was 1.6 % higher than in 2018.

Investment in innovation, research and development.

4.6% in investments in automatic systems and equipment and 2.2% in Research and Development in the last 5 years.

Creation of jobs and steady increase in the number of employees.

163 permanent employees in 2019, more 20 persons compared with 2014.

Investment in the construction/renovation of buildings and plant.

External LED lighting of the factories, fiber optic installation and external fence. Securing the gas pipe.

Corporate welfare benefits / services made available to all employees.

Agreements with credit institutions and insurance companies for discounts on products / services.

Orthotics, flu vaccine, agreement with osteopath.

Investment in activities to develop the local community.

Co-design with other companies and the Administration of the Municipality of Formigine for the construction of the “Hub-Cà Bella” project. Meeting Sympathy. Support to “Porta Aperta” for the redevelopment of medical clinics.

Protection and enhancement of the local cultural heritage..

Company visit of the Cesare Leonardi Architect Archive school.

Sustainable management of the supply chain.

About 27% of suppliers assessed on at least one environmental / social criterion and 53% located within 100 km.

Reduction of CO2 on Home-Work journeys.

2nd edition of Bike to work.

Projects in partnership with local stakeholders.

14,000€ invested in projects and collaboration with local organisations, addressing the topics of local development, social solidarity and health.

6

1. Company profile

company profile

7

Our values Tellure Rôta is one of the principal European firms active in the design, production and distribution of industrial wheels and brackets, based in Formigine, a town in the Italian province of Modena.

“Striving to improve, always.”

These simple words, which have always characterised the company, embody the keywords of the business: improvement, innovation, sustainability.

Words that have represented the philosophy of Tellure Rôta since 1953:

• improvement and development of products, processes, services and solutions,

• innovation and orientation towards the future of

solutions, materials and commercial services,

• sustainability

and measurement, reporting, transparency and awareness: • via our cornerstone values: • personnel development • customer satisfaction • respect for the environment integrated management of business activities via agile, homogeneous and consistent operations

• the integrated management of company activities through an agile, homogeneous and coherent operation.

8

company profile

Milestones 1953 - 1970

From 2010 to date

Foundation of the artisan business in Modena

Qualification and accreditation of the Test & Research laboratory by the High Technology Network of the Emilia-Romagna Region

Trademark registration and transformation into a limited company Equipment of a chemistry-physics laboratory to formulate polyurethane coatings for wheels and to test products 1970 – 1990 Daily production of 2,000 wheels with 100 employees Relocation to the current headquarters in Formigine covering 10,000 sq.m.

Internal CRM system with external link to agents and representatives 1990 - 2010 ISO 9001 quality certification Formation of Tellure RĂ´ta do Brasil ISO 14001 environmental certification Expansion of production capacity with purchase of a 3,000 sq.m. factory close to the headquarters Launch of the lean production project OHSAS 18001 occupational safety certification

Expansion of thermoplastic moulding production in a third, 1,500 sq.m. factory located nearby Legality rating obtained Implementation of a new layout for the production of polyurethane wheels in accordance with the latest manufacturing logic, with introduction of the first plant created in accordance with INDUSTRY 4.0 principles Replacement of the information system

integrated

management

Update to ISO 9001:2015, ISO 14001:2015 and ISO 45001:2018 certifications At the end of December 2019, the renewal of accreditation to the High Technology network of the TR Lab Test & Research laboratory was approved by the Emilia Romagna Region according to the new accreditation methods.

company profile

9

Who we are Tellure Rôta is a limited liability company (SpA) with a share capital of 3,640,000, fully paid, that is wholly owned by L.M. Spa, the investment and property holding company of the Lancellotti family.

• wheels and castors coated in TR polyurethane, TRRoll polyurethane and Vulkollan®

Led by Emanuela Lancellotti, Chairman, Elena Lancellotti, Managing Director, and Giorgio Mercalli, General Manager, the company has 169 employees, a broad network of Italian and foreign agents, and grassroots distribution covering more than 70 countries.

• brackets made from steel sheet and stainless steel for medium loads

TR Lab is accredited with the high technology network organised by the Emilia Romagna Region. This internal laboratory is an integral part of the product innovation process and carries out testing activities, even for third parties, on the materials used and their physical, chemical and mechanical performance.

TR Lab also offers specialist consultancy on such topics as ergonomics, smooth running, safety in the workplace, reduction of effort and consumption, the durability of products, and total operating costs.

• wheels for furniture

The range of Tellure Rôta wheels and brackets comprises more than 8,000 standard items, with a carrying capacity of up to 3,500 kg for many uses, as well as special products designed to satisfy specific customer needs.

The product range is organised as follows: • wheels made from standard, elastic, pneumatic and thermoplastic rubber • monolithic wheels made from polyamide, phenolic resin and cast iron

• wheels and castors in thermoplastic polyurethane

• brackets made from electro-welded steel for heavy loads • wheels for the community

Production takes place in 3 factories located in the same industrial zone, with a covered area of 15,000 sq.m. All processes are carried out internally, except for the production of rubberised gaskets, the casting of metal hubs (steel and cast iron), and the surface treatments of metals.

Production activities include: • automated pressing of metal sheet and strip • automated injection moulding of plastics • production of elastomeric polyurethane wheels using automated and manual plant • assembly of wheels, brackets and wheels+brackets using automated and manual plant and the packaging of finished products.

Activities are organised in accordance with “Lean Production” principles, in order to respond flexibly to customer requests while maintaining reliability and speed of delivery.

10

company profile

Certifications In part, the Sustainability policy of Tellure Rôta is demonstrated to stakeholders via the voluntary adoption of management systems for various business activities that are certified to international standards by independent third parties.

The implementation and constant maintenance of an Integrated Quality-Environmental-Safety System highlights the attention dedicated to customer satisfaction, the environment and the local community, as well as to employees and everyone who collaborates with the company.

Tellure Rôta has also obtained NSF/ANSI 2 international certification for wheels in the food sector and DIN EN840 certification for wheels for waste collection bins.

Certification

In September 2018, the Italian Competition and Market Authority renewed the Legality Rating with the score “ “, first issued in October 2014 and expiring in 2020.

During 2019, both internal audits and periodic surveillance audits carried out by TÜV Italia were carried out with the confirmation of the Quality and Environment Certifications according to UNI EN ISO 9001:2015 and UNI EN ISO 14001:2015. It is also obtained the certification related to the system of Health and Safety at work according to the new standard UNI EN ISO 45001:2018.

The table below lists the certifications obtained and their expiry dates:

Issuing body

Beginning date

Expiry date

ISO 9001:1994

Quality management systems

ICIM

25/03/1996

-

ISO 9001:2000

Quality management systems

TUV

25/01/2002

-

ISO 14001:2004

Quality management systems

TÜV

14/05/2005

-

ISO 9001:2008

Quality management systems

TÜV

23/03/2009

-

Occupation Health and Safety Management System Occupation Health and Safety Management System

TÜV

31/03/2009

TÜV

18/01/2002

OHSAS 18001:2007 ISO 45001:2018 ISO 9001:2015 ISO 14001:2015

CERTIFICATO

Quality management systems

TÜV

22/03/2016

18/01/2023

Quality management systems

TÜV

26/04/2016

17/02/2023

ALLEGATO 1 AL CERTIFICATO NR 50 100 14613 - Rev. 002 ANNEX 1 TO CERTIFICATE NO 50 100 14613 - Rev. 002 pagina 1 di 1 / page 1 of 1

Nr. 50 100 14613 - Rev. 002

IL CERTIFICATO NR 50 100 14613 (ultima revisione applicabile) COPRE ANCHE LE SEGUENTI SEDI OPERATIVE THE CERTIFICATE N 50 100 14613 (last version) COVERS ALSO THE FOLLOWING OFFICES:

Si attesta che / This is to certify that IL SISTEMA DI GESTIONE SICUREZZA E SALUTE DEI LAVORATORI DI THE OCCUPATIONAL HEALTH AND SAFETY MANAGEMENT SYSTEM OF

TELLURE ROTA S.p.A.

TELLURE RÔTA S.p.A. SEDE LEGALE E OPERATIVA: / REGISTERED OFFICE AND OPERATIONAL SITE:

VIA QUATTRO PASSI 15 I-41043 FORMIGINE (MO) SEDI OPERATIVE: VEDI ALLEGATO 1 OPERATIONAL SITES: SEE ANNEX 1

È CONFORME AI REQUISITI DELLA NORMA HAS BEEN FOUND TO COMPLY WITH THE REQUIREMENTS OF

UNI ISO 45001:2018 QUESTO CERTIFICATO È VALIDO PER IL SEGUENTE CAMPO DI APPLICAZIONE THIS CERTIFICATE IS VALID FOR THE FOLLOWING SCOPE

Progettazione, fabbricazione di ruote e supporti per uso industriale, civile e domestico realizzati mediante stampaggio della lamiera, stampaggio dei materiali termoplastici, rivestimento in poliuretano, verniciatura ad acqua e montaggio dei componenti (IAF 14, 17) Design and manufacturing of wheels and castors for industrial, institutional, and home applications produced by means of sheet metal press working, injection moulding, polyurethane coating, waterproduct painting and assembling (IAF 14, 17)

VIA QUATTRO PASSI 15 I-41043 FORMIGINE (MO) Servizi ausiliari e generali (servizio tecnico, commerciale, amministrativo, sistemi informativi, gestione materiali, manutenzione) Lavorazioni meccaniche-verniciatura- assemblaggi General services (product management, sales, administration, IT, purchasing, maintenance), Mechanical processes - coating - assembling VIA A. MORO 29/31 I-41043 FORMIGINE (MO) Stampaggio termoplastici Injection moulding VIA A. MORO 21/25 I-41043 FORMIGINE (MO) Rivestimenti in poliuretano Polyurethane coatings VIA A. MORO 14 F/G/F I-41043 FORMIGINE (MO) Prove e collaudi Tests and trials Per l’Organismo di Certificazione For the Certification Body

Per l’Organismo di Certificazione For the Certification Body

TÜV Italia S.r.l.

Andrea Coscia

Direttore Divisione Business Assurance

Validità /Validity Dal / From:

2019-03-22

Al / To:

2021-03-30

Data emissione / Issuing Date 2019-03-22

“PRIMA CERTIFICAZIONE / FIRST CERTIFICATION: 2009-03-31 (EMESSO DA ALTRO ODC/ ISSUED BY OTHER CB )” “LA VALIDITÀ DEL PRESENTE CERTIFICATO È SUBORDINATA A SORVEGLIANZA PERIODICA A 12 MESI E AL RIESAME COMPLETO DEL SISTEMA DI GESTIONE AZIENDALE CON PERIODICITÀ TRIENNALE” “THE VALIDITY OF THE PRESENT CERTIFICATE DEPENDS ON THE ANNUAL SURVEILLANCE EVERY 12 MONTHS AND ON THE COMPLETE REVIEW OF COMPANY'S MANAGEMENT SYSTEM AFTER THREE-YEARS”

30/03/2021

TÜV Italia S.r.l.

Andrea Coscia

Direttore Divisione Business Assurance

Validità /Validity Dal / From:

2019-03-22

Al / To:

2021-03-30

Data emissione / Issuing Date 2019-03-22

“PRIMA CERTIFICAZIONE / FIRST CERTIFICATION: 2009-03-31 (EMESSO DA ALTRO ODC/ ISSUED BY OTHER CB )” “LA VALIDITÀ DEL PRESENTE CERTIFICATO È SUBORDINATA A SORVEGLIANZA PERIODICA A 12 MESI E AL RIESAME COMPLETO DEL SISTEMA DI GESTIONE AZIENDALE CON PERIODICITÀ TRIENNALE” “THE VALIDITY OF THE PRESENT CERTIFICATE DEPENDS ON THE ANNUAL SURVEILLANCE EVERY 12 MONTHS AND ON THE COMPLETE REVIEW OF COMPANY'S MANAGEMENT SYSTEM AFTER THREE-YEARS”

company profile

11

Code of Ethics The Code of Ethics defines the commitments and ethical-social responsibilities of each person involved in the business, with a view to consolidating the reputation of the company and maximising the confidence of all stakeholders. Just a few sound principles guide the actions of the directors, managers, employees and partners of Tellure Rôta.

The concepts are summarised below: • compliance with the law and current regulations in each area; • honesty, transparency, impartiality;

• respect for and appreciation of diversity; • confidentiality of information; • protection of the corporate image; • respect for the environment.

• protection of the health and safety at work of those who work in the company and on behalf of the company.

12

company profile

Sustainability Policy When planning strategies, Tellure Rôta considers the economic, social and environmental implications of its activities and complies with the principles of sustainability development and corporate social responsibility, which have been recognised internationally since 1987 with the report of the World Commission on Environment and Development (WCED) and the Europa 2020 strategy of the European Union.

Given this premise, the Sustainability Policy has various objectives: • establish clear and measurable Sustainability objectives at the start of each year • check the results achieved periodically and plan actions that guarantee continuous improvement • identify and prevent risks associated with the economic, environmental and social impact of activities and take the opportunities arising from the context in which the business operates • promote research in order to increase know-how and offer innovative products to customers that are both eco-compatible and increasingly effective • comply with the regulations that govern health and safety in the workplace, environmental protection and products • act in a manner that prevents adverse impacts, in accordance with the principle of precaution • take care of employees, doing everything possible to avoid injuries and professional diseases • increase customer satisfaction by continuous improvement over time of the services provided

• reduce waste and the production of scrap and rejects, consistent with the principles of the circular economy • involve and consult employees in the implementation of business activities, encouraging them to take every initiative designed to enhance quality, protect the environment and safeguard health and safety in the workplace • ensure that the system is supported by the periodic and systematic provision of information, education, training and awareness-building activities to all employees and collaborators and, where appropriate, to suppliers, contractors and visitors • share and communicate company policies at all levels internally and to partners and suppliers, working to improve the satisfaction of end customers and to reduce the impact of the products and services supplied to them on the environment and on health and safety in the workplace • prevent environmental and health and safety risks, guaranteeing a clean and efficient working environment • choose recyclable materials wherever possible for the manufacture of products, taking measures designed to save the consumption of resources.

company profile

13

Sustainability Report The topics covered in this Sustainability Report derive from an internal analysis of materiality that sought to determine which aspects are important and enable the company to continue the creation of value over the short, medium and long term. This analysis was carried out in prior years, but remains valid.

Tellure Rôta confirms its commitment to involve all stakeholders in constant constructive dialogue and in a lasting and responsible partnership.

The purpose of the Sustainability Report of Tellure Rôta is to communicate values, results achieved and future objectives, with a view to continuous discussion and improvement. As in the past, this document - which is also printed in Italian - is based on the GRI-G4 guidelines issued by the Global Reporting Initiative.

The report provides qualitative and quantitative information about the activities of the company in recent years, concentrating in particular on the results achieved in 2018.

The data provided was collected, managed and processed internally.

Tellure Rôta has prepared a CSR Report since 2002, so this is the 17th edition.

The actions taken and results achieved in implementation of the 2030 Agenda SDGs are listed on page 5.

Sustainability and Innovation networks Tellure Rôta has been a founding partner since 2009 of the Club of Modena Companies for CSR, which has become since 2014 the “Association of Modena companies for Corporate Social Responsibility”.

The Association brings together 40 companies in the province, of different legal form, size and sector, who collaborate in the creation of thematic events and

workshops, with the aim of promoting the culture and practices of CSR (Corporate Social Responsibility).

It also actively participates in the Innovators Club of Confindustria Emilia, a discussion place between entrepreneurs, corporate product managers, exponents of the scientific and academic world, of laboratories and research centers.

14

2. Economic Sustainability

economic sustainability

15

Results for 2019

2017

2018

2019

29.221.851

29.924.090

31.962.339

Gross operating profit (EBITDA)

2.355.701

2.612.873

2.497.449

Net operating profit (EBIT)

1.072.874

1.328.663

1.217.610

110.285

101.257

56.977

Financial Statements’ Data 2019 (euro) Net revenues from sales

Net borrowing costs

-

-

-

Profit before taxation

962.589

1.227.406

1.160.633

Net profit

731.540

892.666

859.926

Net financial position

- 4.279.628

-3.707.244

-3.101.660

Shareholders’ equity

5.957.488

6.424.229

6.859.393

Non-recurring items

Profit before taxation (thousands of euro) 1.400

1.200

1.227

1.200 1.000

1.161 880

873

2014

2015

963

800

2016

2017

2018

2019

Net financial position (thousands of euro) 6.000 5.000 4.000

4.121

4.886

4.279 3.707

3.429

3.102

3.000 2.000

2014

2015

2016

2017

2018

2019

16

economic sustainability

Turnover and sales volume

Turnover (thousands of euro) 31.000 29.000 27.000 25.000

27.940

31.962 28.531

29.222

29.924

2017

2018

26.489

23.000 21.000 19.000 17.000 15.000 2014

2015

2016

2019

Number of items sold 6.000.000

5.985.797

5.925.834 5.907.938

5.800.000

5.818.467 5.728.851

5.682.657

2017

2018

5.600.000 5.400.000 5.200.000 5.000.000 4.800.000 2014

2015

2016

2019

2017

2018

2019

Abroad

15.611.239

15.437.687

17.745.609

Italy

13.610.612

14.486.403

14.216.730

Total

29.221.851

29.924.090

31.962.339

Turnover (euro)

economic sustainability

17

Production and distribution of value added

Value added production and distribution (euro) Revenues from sales Change in inventories of work in process, semi-finished and finished products Other revenues and income

2017

2018

2019

29.221.851

29.924.090

31.962.339

29.658

495.799

33.828

229.910

218.946

153.692

45.618

78.374

41.903

Total value of production

29.527.037

30.717.209

32.191.762

Cost of raw, ancillary and consumable materials and goods

12.354.391

12.389.900

13.369.800

-318.863

-104.767

161.439

5.964.883

6.236.402

6.297.628

Cost of leases and rentals

861.051

895.625

927.471

Other operating expenses

180.453

190.999

192.732

Net borrowing costs

110.285

101.257

56.977

90.243

146.951

150.512

Sub-total of production costs

19.242.443

19.856.367

21.156.559

Gross value added by operations

10.284.594

10.860.842

11.035.203

-

-

-

10.284.594

10.860.842

11.035.203

Operating grants

Change in inventories of raw, ancillary and consumable materials and goods Cost of services

Impairment

Non-recurring items Total gross value added

Value added (thousands of euro) 12.000 10.000 8.775

9.513

10.296

10.285

2016

2017

10.861

11.035

2018

2019

8.000 6.000 4.000

2014

2015

18

economic sustainability

Distribution of value added among the stakeholders (euro) a) Remuneration of work b) Remuneration of the P.A. c) Remuneration of the business system d) Remuneration of risk capital Total gross value added

2017

2018

2019

8.129.421

8.496.175

8.745.243

231.049

334.741

300.707

1.192.584

1.137.260

1.129.327

731.540

892.666

859.926

10.284.594

10.860.842

11.035.203

8%

Remuneration of risk capital

10%

Remuneration of the business system

3%

Remuneration of the P.A.

79%

Distribution of value added

Remuneration of work

economic sustainability

19

Investiment

Investiment (euro) Automatedplant and speciific technological installatin

2017

2018

2019

321.964

569.520

99.699

-

-

-

Moulds and tools for products

39.227

112.075

90.600

Elettronic office machines

55.850

14.155

25.029

Licences and software

32.003

17.485

27.068

Marchi e brevetti

-

-

17.353

Others

-

-

97.305

449.044

713.235

357.054

2017

2018

2019

127.401

-

-

23.024

6.940

16.893

7.213

5.901

4.596

Highly qualified employees dedicated to R&D

321.972

121.444

97.904

Technical employees dedicated to R&D

346.814

263.532

190.761

3.927

1.133

775

12.793

-

17.353

843.144

398.949

328.281

Presse meccaniche

Total

Research and development

Investment in R&D (euro) Research contracts Raw materials for trials and prototypes Analysis and trials

Depreciation of R&D equipment Patent costs incurred for R&D purposes Total

20

3. Environmental Sustainability

environmental sustainability

21

Consumption of raw materials Raw materials used (kg) 6.000.000

5.673.290

5.822.613

5.575.022

5.000.000

5.669.927 4.852.997

4.559.934

2017

2018

4.000.000 3.000.000 2.000.000 1.000.000 0 2014

2015

2016

2019

Finished components used (number) 150.000.000 140.000.000 130.000.000

131.514.990

134.667.565

142.851.378

136.038.558

120.000.000

120.072.520

119.145.017

2017

2018

110.000.000 100.000.000 2014

2015

2016

2019

22

environmental sustainability

Management of energy

Consumption of energy

2014

2015

2016

2017

2018

2019

268.433

304.558

410.087

478.551

477.259

441.405

2.742.823

2.866.650

3.260.142

3.288.905

3.223.876

3.102.698

2014

2015

2016

2017

2018

2019

2.818.547

3.197.859

4.305.914

5.024.786

5.011.220

4.634.753

Electricity

2.742.823

2.866.650

3.260.142

3.288.905

3.223.876

3.102.698

Total consumption of energy

5.561.370

6.064.509

7.566.056

8.313.690

8.235.096

7.737.451

Natural gas (cu.m) Electricity (kWh)

Energy mix used (kWh) Natural gas

environmental sustainability

23

Production, management and re-use of waste Production of waste by type and method of disposal / recovery (kg)

2014

2015

2016

2017

2018

2019

103.820

105.525

88.358

74.888

65.660

68.520

Aqueous waste sent for filtration

49.880

40.580

25.260

7.080

13.920

27.360

Metallic waste sent for recovery

1.776.754

1.816.115

1.709.714

1.549.147

1.511.051

1.794.340

93.870

119.580

119.735

131.725

132.869

145.606

77

8.158

1.172

1.296

3.447

9.809

2.024.401

2.089.958

1.944.239

1.764.136

1.726.947

2.045.635

46.957

35.450

44.570

34.131

35.254

27.117

18.736

24.776

25.189

30.191

31.138

47.650

65.693

60.226

69.759

64.322

66.392

74.767

2.090.094

2.150.184

2.013.998

1.828.458

1.793.339

2.120.402

Paper, plastic, wood, metal packaging sent for recovery

Plastic waste sent for recovery Other Total non-hazardous waste Aqueous waste sent for filtration Non-aqueous waste sent for filtration Total hazardous waste Total waste produced

Waste sent for recovery (t) 2.400 2.200 2.000 1.800

2.090 1.974

2.150 2.041

1.828 1.918

1.600

2014

2.120

2.014

2015

2016

1.793

1.756

1.710

2017

2018

Waste sent for recovery

2.008

2019 Total waste

24

environmental sustainability

Waste sent for recovery (kg)

Quantity of waste sent for recovery

2014

2015

2016

2017

2018

2019

1.974.444

2.041.220

1.917.807

1.755.760

1.709.580

2.008.466

Percentage of total non-hazardous waste recovered

97,5%

97,7%

98,6%

99,5%

99,0%

98,2%

Percentage of total hazardous waste recovered

94,4%

94,9%

95,2%

96.0%

95,3%

94,7%

Consumption of water and fuel for transportation Water consumption over time (cubic metres) 4.000

3.080

3.000 2.000

2.413

2.278

2015

2016

3.043 2.286

1.518

1.000 o

2014

2017

2018

2019

Fuel consumption by the vehicle fleet (litres) 19.000

18.561

18.140

18.000

17.862 17.167

17.000

17.499

17.028

16.000

2014

2015

2016

2017

2018

2019

environmental sustainability

25

Greenhouse gas emissions Climate-altering emissions (tonnes of CO2 eq.)

2.000 1.500 1.000

947

988

524

594

500

1.119

1.130

1.107

1.069

800

934

932

862

0 2014

2015

2016

2017

2018

Direct emissions

2019 Indirect emissions

26

4. Social Sustainability

social sostainabilty

27

Employees

Number of employees 200 175 150

165

165

2015

2016

169

169

2017

2018

163

143

125 100 2014

2019

Numero

Percentuale

Executives

2

1%

Managers

4

2%

White collar

40

25%

Blue collar

117

72%

Total

163

100%

Numero

Percentuale

160

98%

Apprenticeships

1

1%

Fixed-term

2

1%

Employees by level

Employees by type of contract Permanent

28

social sostainabilty

9%

33% Women

38%

Under 30

Over 50

Employees by gender

Employees by age

18%

between 31 and 40

Absences Reason Illness Compulsory/optional maternity Injuries Strikes Marriage leave Blood donation Leave, Law 104/92 (family reasons) Special leave Total hours Percentage of hours worked in the year

35%

between 41 and 50

67% Men

2018

2019

%

%

80,5%

75,2%

4,6%

7,1%

4,8%

8,5%

4,5%

1,7%

0,7%

0,7%

0,3%

0,3%

3,7%

5,8%

1,0%

0,6%

100%

100%

6,6%

6,5%

social sostainabilty

29

Training and safety

Training hours per person by category and gender

2017

2018

2019

9

6

7

By category Blue collar

9

31

17

Managers

28

25

12

Executives

0

30

3

Men

9

15

11

Women

7

10

6

2017

2018

2019

112

49

11

White collar

By gender

Total training hours by subject area IT

0

32

20

18

420

552

Managerial

0

297

0

Foreign languages

0

216

0

Financial economics Technical / operational (specific)

0

48

0

515

555

471

51

0

0

Total excluding Safety

695

1615

1054

Safety

770

616

510

1465

2231

1564

Commercial Quality / Environment Lean (5s)

Grand total

2017

2018

2019

Injuries at work

4

7

6

Injuries while travelling to work

2

1

0

Total injuries during the year

6

8

6

247

133

231

0,59%

0,31%

0,55%

Employee injuries

Working days lost Lost Day Rate

30

Communications Trade fairs 2019 LOGIMAT (Stuttgart - 19/21 February) MECSPE (Parma - 28/30 March) R2B (TR Lab) (Bologna - 6/7 June) HARDWARE FORUM (Milano – 25/26 September) CEMAT ASIA (Shanghai – 23/26 October) MECSPE BARI (Bari – November)

social sostainabilty

31

social sostainabilty

Suppliers

Sustainability of the supply chain

2014

2015

2016

2017

2018

2019

No. of suppliers

303

310

294

267

269

322

Suppliers assessed on at least one environmental/social sustainability criterion

23%

23%

24%

25%

25%

27%

No. of suppliers located within 100 km

159

155

148

134

131

172

32

social sostainabilty

Community engagement Activities 2019 School-Work Exchange Project Orientation Project Internships Agreements with Research Centres Collaboration with non-profit bodies Collaboration with public bodies 2030 Agenda and Welfare Sustainable mobility

Investment in community projects (euro)

2017

2018

2019

Economic development

4.000

11.000

4.000

Education and research

2.289

1.144

3.094

Art and culture Health

5.500

1.000

703

324

321

427

Social solidarity

6.800

1.500

6.000

18.913

14.966

14.224

Total

33

Commitment to economic improvement

Our commitments Our commitments in 2019

2019 Actuals

Grow revenues by consolidating market share.

Revenues rose by 6.8% in 79 countries.

Increase operating profit before taxes.

Operating profit improved.

Gradually improve the net financial position.

Improve product quality (target: < 8 complaints/month).

Increase productivity by 5%.

Reduce credits on sales (target: < 0.50%).

Improve lead time reliability (target: punctuality >85%).

Commitment to sustainability

Develop and implement new corporate communication tools.

Continue local CSR activities.

Further improvement in the net financial position by more than 16.3%.

Objective achieved (7.9 complaints/ month)..

Objective not achieved.

Objective achieved (0.27%).

Objective not achieved (79.4%).

New 2019 edition of the Catalogue (Italian, English, French, Spanish), mini-catalogue Transpallettes, LinkedIn and participation at 6 trade fairs.

2020 Objectives Grow revenues by consolidating market share.

Increase operating profit before taxes.

Gradually improve the net financial position.

Improve product quality (target: < 5 complaints/month).

Increase productivity.

Reduce credits on sales (target: < 0.32%).

Improve lead time reliability (target: punctuality >85%).

Develop and implement new corporate communication tools.

Founding member of the Club of Continue local CSR activities.

Modena Firms for CSR, taking part in all activities. Contribution to “Porta Aperta” for surgeries.

Continue collaboration with the Municipality on community support projects.

“Middle School Orientation” Project Founder member of the 4HUB association for development of the “Ca’ Bella” activities.

Improve environmental performance and safety at work.

Investment in safety of 286,000 euro, Improve environmental 1,750 for employee. performance and safety at work.

Continue collaboration with the Municipality on community support projects.

34

Tellure RĂ´ta and the GRI (Content Index) GRI G4 indicator

Report section

p.

GRI G4 - General Standard Disclosures

G4-1 Statement from the most senior decision-maker

Letter to the Stakeholders

1

G4-3 Name of the organisation

Who we are

9

G4-4 Primary brands, products and services

Who we are

9

G4-5 Location of the organisation's headquarters

Who we are

9

G4-7 Nature of ownership and legal form

Who we are

9

G4-8 Markets served

Who we are

9

G4-9 Scale of the organisation

Highlights of 2019

4

G4-10 Employee data

Employees

27

G4-12 Description of the organisationâ&#x20AC;&#x2122;s supply chain

Suppliers

31

G4-13 Significant changes

Who we are

9

G4-14 Precautionary principle

Production process and environmental aspects

23

endorsed

Community engagement

32

G4-16 Memberships and partnerships

Sustainability and Innovation networks

13

G4-17 List of companies

Who we are

9

G4-18 Process for defining report content

Sustainability Report

13

G4-19 Material aspects

Sustainability Report

13

G4-20 Aspect boundaries

Methodological note to the 2019 Report

36

Methodological note to the 2019 Report

36

periods

Methodological note to the 2019 Report

36

G4-24 Stakeholder groups engaged

Methodological note to the 2019 Report

36

G4-25 Identification of stakeholders

Methodological note to the 2019 Report

36

G4-26 Approach to stakeholder engagement

Methodological note to the 2019 Report

36

G4-27 Key topics discussed with stakeholders

Methodological note to the 2019 Report

36

G4-28 Reporting period

Methodological note to the 2019 Report

36

G4-29 Previous reports

Methodological note to the 2019 Report

36

G4-34 Governance structure

Who we are

9

G4-36 Function responsible for Sustainability Report

Who we are

9

G4-42 Role of owners in defining Sustainability policies

Methodological note to the 2019 Report

36

Sustainability Report

13

G4-15 Externally developed sustainability initiatives

G4-22 Restatements of information provided in prior years G4-23 Significant changes from previous reporting

G4-45 Role of owners in identifying impacts and consultations with stakeholders on Sustainability matters

35

GRI G4 indicator

Report section

p.

G4-48 Function responsible for assessing the coverage of materials aspects

Sustainability Report

13

Our values

7

Production and distribution of value added

17

Suppliers

31

Consumption of raw materials

21

production cycle by type

Production, management and re-use of waste

23

G4-EN3 Energy consumption within the organisation

Management of energy

22

G4-EN6 Reduction of energy consumption

Management of energy

22

G4-EN8 Total water withdrawal by source

Consumption of water and fuel for transportation 24

G4-EN10 Percentage of water recycled

Consumption of water and fuel for transportation 24

G4-EN15 Direct greenhouse gas (GHG) emissions (Scope 1)

Greenhouse gas emissions

25

Greenhouse gas emissions

25

Greenhouse gas emissions

25

G4-56 Values, principles, standards and codes of conduct Indicators of Economic Sustainability G4-EC1 Direct economic value generated and distributed G4-EC9 Purchases made from local suppliers Indicators of Environmental Sustainability G4-EN1 Materials used by weight and volume G4-EN2 Percentage of materials re-used in the

G4-EN16 Energy indirect greenhouse gas (GHG) emissions (Scope 2) G4-EN20 Emissions of ozone-depleting substances (ODS) G4-EN30 Significant impacts of transporting goods, products and personnel

Consumption of water and fuel for transportation 24

Indicators of Social Sustainability G4-LA1 Number of new hires and turnover

Employees

27

G4-LA2 Employee benefits

Welfare activities

32

G4-LA6 Types of injury and other indicators

Trainng and Safety

29

G4-LA9 Average training hours by type of employee

Trainng and Safety

29

Who we are

9

Community engagement

32

G4-LA12 Composition of governance bodies by gender G4-SO1 Operations implemented with local community involvement

36

Methodological note to the 2019 Report The purpose of this Sustainability Report from Tellure Rôta is to describe 2019 performance in economic, environmental and social terms and to inform key stakeholders about the impact generated by the company, with a view to transparency, awareness and dialogue.

This document is the 17th edition of a process of inter-sector reporting that began in 2002, with the preparation of the 1st Social Report, and continued from 2009 with publication of the 1st Sustainability Report. As part of improvements consistent with current international Sustainability Accountability practices, the format of the Sustainability Report has been updated in line with the “Sustainability Reporting Guidelines G4” promoted by the Global Reporting Initiative (GRI).

Accordingly, the Report adopts the In accordance Core approach to the GRI.G4 standard. In particular, the Report covers all the “General Standards” and the “Specific Standards” that are most significant (material) for Tellure Rôta.

With regard to the latter, the Report makes the required Disclosure on Management Approach – DMA and presents at least one related indicator.

The “Materiality Analysis” has not been updated, as there have not been any changes in the prerequisites for identifying perceptions, cross-functional impacts and improvements to be made (the methodology and results of the Materiality Analysis were published in the 2016 and 2017 Sustainability Reports).

The scope of reporting coincides with that adopted for the preparation of the financial statements. Tellure Rôta do Brasil became a foreign affiliate in 2013 and is therefore no longer a subsidiary of the company.

Links between the actions taken by Tellure Rôta and the various UN SDGs are summarised at page 5 of the Report. Together with the annual financial statements, the Sustainability Report has been examined and approved by the Board of Directors of Tellure Rôta.

37

Suggestions - Comments 2019 Sustainability Report Your opinion is vital in order to assess our work. For this reason, please send us your impressions by filling out this short questionnaire:

Which category of stakeholder do you belong to?

Employees Agents Customers Suppliers Lenders Public Administration Local Community

What do you think of the 2019 Sustainability Report?

Graphic layout Clarity of content Completeness of information Ability to increase awareness about Tellure Rôta

What do you think about the results for 2019?

Economic standpoint

Social standpoint

Employees

Agents

Customers

Suppliers

Lenders

Public Administration

Local Community

What do you think about the objectives of Tellure Rôta?

Social standpoint Employees Agents Customers Suppliers Lenders Public Administration Local Community

General suggestions for improvement

Contact details

To make suggestions, for assistance with filling out this form or for any other information or questions about the Sustainability Report, please contact: Human Resources: phone +39.059.410241 – e-mail: davide.clo@tellurerota.com.

For additional information about the company, please visit our website www.tellurerota.com

Tellure Rôta Via Quattro Passi 15 • 41043 Formigine (MO) Tel. 0039 059 410231-253 • Fax 0039 059 572859 comm.estero@tellurerota.com • www.tellurerota.com

TR Lab Via Aldo Moro, 14/G-H • 41043 Formigine (MO) Tel. 0039 059 410271 • Fax 0039 059 573167 info@trlab.it • www.trlab.it

UNI EN ISO 9001:2015

UNI EN ISO 14001:2015

OHSAS 18001:2007