2019
Consolidated Non-Financial Statement pursuant to Legislative Decree No. 254/2016
SUSTAINABILITY
REPORT 2019
Consolidated Non-Financial Statement pursuant to Legislative Decree No. 254/2016
FINCANTIERI GROUP | FINCANTIERI GROUP |
C ONTENTS
LETTER TO STAKEHOLDERS
FINCANTIERI IN NUMBERS
A SUSTAINABLE GROUP
Our identity
Our sustainability strategy
RESPONSIBLE GOVERNANCE
Corporate Governance
and Remuneration Policy
Our system of internal control and risk management
Our rules on fair conduct We respect human rights
We protect data and information
FINCANTIERI FOR SOCIETY
For the economy and the market Economic value for stakeholders Our economic satellite businesses For innovation
We are innovators
We cooperate in order to create value Our main projects
For a sustainable supply chain
Who are our suppliers and how we choose them
How we monitor them
Characteristics and management of the supply chain of foreign companies
Ongoing dialogue For our customers
More sustainable and safer ships
4 | Quality at the core | 112 |
Ongoing dialogue | 118 | |
8 | For our people | 120 |
11 | We aim to attract talent | 121 |
We train and enhance our people | 124 | |
12 | with an eye on excellence | |
19 | Diversity and inclusion as an asset | 128 |
Our commitment to health and safety | 131 | |
37 | Well-being for our people | 137 |
38 | We listen to our people | 142 |
For the community | 144 | |
44 | Our lines of action | 146 |
We dialogue with communities and | 153 |
- institutions
55 | FINCANTIERI FOR THE ENVIRONMENT | 154 |
59 | To reduce our impact | 156 |
Our management system | 158 | |
60 | We invest for the environment | 170 |
62 | We protect biodiversity | 171 |
68 | To promote sustainability | 172 |
70 | Our ever greener ships | 172 |
70 | We raise our partners' awareness | 182 |
75 | of eco-sustainability | |
80 | Together for a more eco-sustainable | 183 |
86 environment
88 | ANNEXES | 184 |
93 | Methodological note | 186 |
98 | Description of material topics | 190 |
Global Compact reconciliation table | 192 | |
102 | GRI Content Index | 194 |
104 | Independent auditors' report on the | 206 |
107 | consolidated non-financial statement |
2 | 3 |
FINCANTIERI GROUP
FINCANTIERI GROUP
LETTER TO STAKEHOLDERS
The 2019 financial year saw the publication of our third Sustainability Report. For our Group, a new phase of further improvement is opening up, in which the issues of corporate responsibility have been introduced into business processes and are becoming increasingly harmonized with them. The stated objective is, of course, to promote and consolidate a strong culture of sustainability in a planned way, reflecting Fincantieri's strategic vision.
Last year, as part of this virtuous path, we published the Sustainability Plan, a truly fundamental milestone, with which we stated our long-term commitments over a five-year period, and we achieved all the objectives for 2019. A further step was taken by joining the United Nations Global Compact, the world's largest business sustainability initiative. The scheme involves voluntary adherence to
ten universal principles relating to human rights, labour, the environment and the fight against corruption, through political actions, business practices and social and civil behaviour. Fincantieri is the largest shipbuilder, and the first cruise shipbuilder, to adopt these principles in its strategy.
This important result on the external front was immediately followed by another equally important one internally. We refer to the "Fincantieri for the green future" campaign, aimed at increasing awareness of environmental sustainability among all our stakeholders, primarily involving our own employees as well as contractor personnel, to encourage them to make a positive and tangible contribution to environmental protection through their behaviour in everyday life, not just in the workplace.
Let's review some of the most important actions pursued during the year just ended. In the field of Research and Innovation, 2019 saw us spearheading two agreements of prime national importance. The first, with Cassa Depositi e Prestiti (CDP), our main shareholder, and Snam, in the key sectors for the development of port facilities in Italy and sustainable technologies for maritime transport, in line with the Proposal for an Integrated National Plan for Energy and Climate (PNIEC). The second, again with CDP, together with Eni, lays the foundations for establishing a company to develop and build power stations that use waves to produce electricity. We also presented, in collaboration with the National Research Council (CNR), the results of six multidisciplinary research projects funded
by the Ministry of Infrastructure and Transport for innovation in the naval field.
Our commitment to innovation also sees us engaging as partners of leading institutions of higher education. In fact, we have signed an extensive agreement to establish new cooperative relationships in the civil, industrial and information engineering sectors with the University of Calabria, one of the largest universities in the South of Italy, which will allow us to tap into a pool of excellence in terms of academic and research standards, with students ready to take advantage of the opportunities that the Company can offer in Italy and abroad. Moreover, our subsidiary Issel Nord, which specializes in logistics engineering and high added value services, has been working with the University of Genoa- Polo Guglielmo Marconi to develop the "Integrated Product Support and Lifecycle Management" course: a new opportunity for students of Master's degree courses
in Mechanical Engineering - Design and Production and Yacht Design, which has obtained the direct patronage of the Product Support & Specifications Group of ASD, the AeroSpace and Defence Industries Association of Europe, and will also concern the software tools developed by our Company. In agreement with the Liguria Region, we have also helped to launch the "Senior technician for the production and maintenance of means of transport and related infrastructure" course at the Accademia della Marina Mercantile (Merchant Navy Academy). All these initiatives concretely demonstrate the Group's desire to create greater synergy
between the training offered by universities and the needs of employers, to improve the quality of training and research processes and to offer young people a series of academic paths with innovative content to prepare them for entry into the world of work.
Young people are therefore a resource to be invested in with determination, but are certainly not the only target for our ambitious and worthwhile projects. Our reference communities, i.e. the populations of the areas where we are present, are in turn essential partners, and we constantly promote proactive initiatives to improve their welfare, as well as the wellbeing of our employees and their families. Among the many projects of this type, we want to mention the extension of our charitable projects to include local Food Banks for the recovery of food surpluses in Bari and Ancona, after starting similar projects
in the Ligurian shipyards. Last summer, together with the Municipality of Genoa, we inaugurated a summer centre that welcomed not only the children of our employees but also the rest of the city. Finally, we have signed an agreement with the Municipality of Monfalcone for the construction of a nursery school, committing ourselves to renovate a building owned by the Municipality, with an investment totally at our expense of euro 1 million, in addition to the payment of management and consumption costs up to a maximum amount of euro 300,000 per year for the first three years.
4 | 5 |
FINCANTIERI GROUP | GRUPPOFINCANTINCANTIERIGROUP |
Alongside this there is constant dedication to the aspects of people's lives that are most closely linked to work in Group shipyards around the world. In September the Palermo site also completed the process for RINA to issue OHSAS 18001 and ISO 14001 certificates of conformity, the highest international standards of health and safety at work and environmental protection: with this result the Company arrived at full coverage of all the Group's Italian production units. Looking overseas, however, we cannot fail to mention the two safety awards obtained by our Marinette shipyard, which in 2019 received both the "Excellence in Safety" and "Improvement in Safety" awards from the Shipbuilding Council of America.
Once again it is worth pointing out that Fincantieri does not just see sustainability as an opportunity, but as a real mission to achieve and represent a model of excellence.
In conclusion, we cannot fail to mention the situation that we have all been facing here for a few weeks now. Since the first signs of the COVID-19 epidemiological phenomenon, the Company has set up a crisis committee to monitor and coordinate the necessary actions. In this way we were able to promptly implement all the measures aimed at safeguarding the health of all workers, through initiatives
in line with the indications given and the measures progressively adopted by the government, and often supplementing
them, as in the case of the stipulation of an insurance cover specifically designed for the COVID-19 health emergency, aimed at all the employees of the Group's Italian companies and of the companies in the supply network. In this context, Fincantieri has currently suspended production activities at Italian shipyards as of 16 March, signing an agreement with the national trade unions, the cornerstone of which
is to guarantee continuity of production when they are resumed. Now, as is our custom, we want to look to the future with determination: we want to restart as soon as possible, guaranteeing the health and safety of our employees and those of the companies in the supplier network while maintaining the leadership, employment levels and credibility that Fincantieri has earned with its domestic and foreign customers - fundamental elements not only for Fincantieri and its system, but also for the stability of the national economy. The challenge ahead of us is very tough, but we have emerged stronger from all the other crises we have faced, and this time, despite the most serious emergency since the second post-war period, it will be the same again.
GIUSEPPE BONO
Fincantieri Chief Executive Officer
6 | 7 |
FINCANTIERI GROUP
FINCANTIERI IN NUMBERS
FINCANTIERI GROUP
SHIPYARDS AND DOCKS EUROPE
ITALY
Trieste Monfalcone Marghera Sestri Ponente Genoa
Riva Trigoso - Muggiano Ancona Castellammare di Stabia Palermo
NORWAY Aukra Brattvaag Brevik Langsten Søviknes
ROMANIA Braila Tulcea
ASIA
VIETNAM
Vung Tau
AMERICAS
USA
Marinette
Sturgeon Bay
Green Bay
BRAZIL
Suape
€ 5.8 bln
Revenues
+580,000
Hours of training
provided
20
Shipyards - Total
area of 5.4km2
+7,000
Ships designed
and built
PRINCIPAL
Western
shipbuilder
Almost
20,000
employees at 31.12.2019
57% 43% other Italy
countries
-5,093tCO2e
GHG emissions
1st
Player in
diversification and innovation
+230 | € 134 mln |
Years of history | |
Research, | |
development and | |
innovation |
- 32.7 bln
Total backlog
98
Vessels in order book
+6,000
Suppliers in Italy
alone
4
Continents
EUROPE
ITALY
FINCANTIERI S.p.A.
Cetena
Seastema
Isotta Fraschini Motori
Fincantieri Oil&Gas
Marine Interiors
Marine Interiors Cabins
Insis
Seanergy A Marine Interiors
Company
Fincantieri SI
Fincantieri Infrastructure
Fincantieri Infrastructure
Opere Marittime
Issel Nord
NORWAY
VARD Group
Vard Design
Vard Piping
Vard Electro
Vard Accomodation
Seaonics
ROMANIA
Vard Tulcea
Vard Braila
CROATIA
Vard Design Liburna
SWEDEN
Fincantieri Sweden
POLAND
Seaonics Polska
MAIN SUBSIDIARIES ASIA
CHINA
Fincantieri (Shanghai) Trading
INDIA
Fincantieri India
Vard Electrical Installation
and Engineering (India)
QATAR
Fincantieri
Services Middle East
SINGAPORE
Vard Holdings
Vard Shipholdings Singapore
JAPAN
FMSNA YK
VIETNAM
Vard Vung Tau
AMERICAS
USA
Fincantieri Marine Group
Fincantieri Marine Systems
North America
Fincantieri Services USA
Fincantieri USA
CANADA
Vard Marine
BRAZIL
Vard Promar
OCEANIA
AUSTRALIA
Fincantieri Australia
8 | 9 |
- SUSTAINABLE GROUP
- OUR IDENTITY
- OUR SUSTAINABILITY STRATEGY
10 | 11 |
FINCANTIERI GROUP
We are a unique group in the world. We are the only operators capable of building all types of highly complex vessels
Fincantieri Group (also referred to here as Fincantieri, Group or Company) is one of the world's largest shipbuilding groups and number one in terms of diversification and innovation.
We are a global multinational company and the only operators capable of building all types of highly complex vessels from cruise ships to mega-yachts, from naval vessels to high-tech offshore vessels.
We are the leader in cruise ship design and construction and a reference player in all high-tech shipbuilding industry sectors. We work to create an increasingly technological and sustainable future, focusing on innovation and respect for people and the environment.
OUR IDENTITY
The Group, which has its headquarters in Trieste, has built more than 7,000 vessels in its over 230 years of history. With 19,823 employees, including more than 9,300 in Italy, and 20 shipyards spanning 4 continents, our customers include the major cruise operators, the Italian and US Navy, as well as several foreign Navies. We are a partner of some of the main European defence companies within supranational programs.
Fincantieri is focused on customer satisfaction and for this reason, over the years, it has evolved its organizational structure to adapt it to the Group's strategies and to respond to the challenges posed by the market in a timely manner. Today the Group consists of a number of companies with headquarters in Italy and around the world, and adopts
an integrated production model based on excellence. Fincantieri has 82 subsidiaries,
26 of which are Italian and 56 of which are foreign. As part of its growth and business strengthening strategy, 14 new companies were acquired or established in 2019. In particular, in order to strengthen activities in high-tech sectors, during the year a majority stake was acquired in Insis S.p.A., a company active in the information technology and cyber security sectors, which operates on domestic and foreign markets both directly and as
a technological partner of large industrial groups.
Fincantieri's business is widely diversified by end markets, geographical exposure and by client base, with revenue mainly generated from cruise ship, naval and offshore vessel construction. Compared with less diversified players, such diversification allows it to mitigate the effects of any fluctuations in demand on the end markets served.
12 | 13 |
FINCANTIERI GROUP
GROUP OVERVIEW
SEGMENTS | SHIPBUILDING | |
BUSINESS AREAS |
FINCANTIERI GROUP
OFFSHORE
AND SPECIALIZEDEQUIPMENT, SYSTEMS AND SERVICESOTHER VESSELS
Cruise ships | Ferries | Naval Vessels | |
Contemporay | Cruise ferry | Aircraft Carriers | |
Premium | Ro-Pax | Destroyers | |
PORTFOLIO | Upper Premium | Dual fuel ferries | Frigates |
Luxury | Corvettes | ||
Exploration/Niche | Patrol vessels | ||
PRODUCT | Expedition cruise vessels | Amphibious ships | |
Logistic support ships | |||
Multirole and Research | |||
Vessels | |||
Special vessels | |||
Submarines |
Mega-Yacht
Mega-yacht > 70 m
Offshore and | Systems and | Services |
Specialized Vessels | Components | Ship repairs |
Drilling units | Cabins | Refitting |
Offshore support vessels | Public areas | Refurbishment |
(AHTS-PSV-OSCV) | Electrical, electronic and | Conversions |
Specialized vessels | electromechanical integrated | Product lifecycle |
Fishery/Aquaculture | systems | management |
Automation systems | ||
Offshore Wind | • Integrated logistic support | |
Entertainment systems | ||
• In-service support | ||
Stabilization, propulsion, | ||
• Refitting | ||
positioning and power | ||
• Conversions | ||
generation systems | ||
Steam turbines | Training and assistance | |
Steel structure for large | ||
scale projects |
Electronics,
Systems and
Software
Design and integration of complex systems (system integration) with a focus on automation
Cyber security
Infrastructure
Design, construction and assembly of steel structures on large projects:
- bridges
- viaducts
- airports
- ports
- maritime/hydraulic works
- large commercial and industrial buildings
Corporate functions
Strategic Direction and Coordination
- Governance, Legal and Corporate Affairs
- Accounting and Finance
- Human Resources
- Information Systems
- Research & Innovation
- Purchasing
FINCANTIERI S.p.A. | Fincantieri Marine Group | |
• Monfalcone | Holdings Inc. | |
• Marghera | FMG LLC | |
• Sestri Ponente | • Sturgeon Bay | |
VENTURES | • Integrated Naval Shipyard | Marinette Marine |
Navale Riva Trigoso and | Corporation LLC | |
Muggiano | • Marinette | |
SUBSIDIARIES/ASSOCIATES/JOINT | • Ancona | ACE Marine LLC |
• Castellammare di Stabia | • Green Bay | |
• Palermo | Fincantieri India Pte Ltd. | |
Vard Group AS | Fincantieri do Brasil | |
• Langsten | Partecipacões SA | |
• Søviknes | Fincantieri USA Inc. | |
Vard Tulcea SA | Fincantieri Australia PTY Ltd. | |
• Tulcea | Fincantieri (Shanghai) | |
MAIN | Vard Braila SA | Trading Co. Ltd. |
• Braila | Etihad Ship Building LLC. | |
Vard Accommodations AS | Orizzonte Sistemi Navali S.p.A. | |
Cetena S.p.A. | CSSC - Fincantieri Cruise | |
Industry Development Ltd. |
FINCANTIERI S.p.A. | FINCANTIERI S.p.A. | FINCANTIERI S.p.A. | Seastema S.p.A. | Fincantieri | FINCANTIERI S.p.A. |
Fincantieri Oil&Gas S.p.A. | • Riva Trigoso | • Arsenale Triestino San | Issel Nord S.r.l. | Infrastructure S.p.A. | |
Vard Group AS | Seaf S.p.A. | Marco | Insis Group | Fincantieri Infrastructure Opere | |
• Aukra | Isotta Fraschini Motori S.p.A. | • Bacino di Genova | Marittime S.p.A. | ||
• Brattvaag | Fincantieri SI S.p.A. | FMSNA Inc. | Pergenova S.c.p.a. | ||
• Brevik | Marine Interiors Cabins S.p.A. | Fincantieri Services Middle | Fincantieri Dragaggi | ||
Vard Promar SA | Marine Interiors S.p.A. | East LLC | Ecologici S.p.A. | ||
• Suape | Seanergy a Marine Interiors | Fincantieri Services USA LLC | |||
Vard Vung Tau Ltd. | company S.r.l. | ||||
• Vung Tau | Luxury Interiors Factory S.r.l. | ||||
Vard Electro AS | Fincantieri Sweden AB | ||||
Vard Design AS | Unifer Navale S.r.l. | ||||
Vard Piping AS | |||||
Vard Marine Inc. | |||||
Seaonics AS |
14 | 15 |
FINCANTIERI GROUP
SHAREHOLDERS STRUCTURE | 71.32% of Fincantieri's share capital of | |
862,980,725.70 euros is held, through the | ||
INDISTINCT MARKET | CDP Industria S.p.A. | subsidiary CDP Industria S.p.A., by Cassa |
Depositi e Prestiti (CDP) S.p.A., a company |
FINCANTIERI GROUP
Vision, Mission and Values
VISION | MISSION |
controlled by the Ministry of Economy and | ||
28.26% | Finance. The remainder of share capital was | |
distributed between a number of private | ||
0.42 % | investors (none of whom held significant | |
interests of 3% or above) and own shares | ||
FINCANTIERI S.p.A. | 71.32 % | |
(OWN SHARES) | (of around 0.42% of shares representing the |
share capital).
We aspire to be world leaders in the industrial sectors where we operate, becoming a reference point for our customers, always selecting high value-added sectors and standing out for our diversification and innovation.
The Sea Ahead: all those who work for the
Fincantieri Group steer for this course: talented men and women working responsibly to help develop our idea of a future increasingly characterized by innovation, performance and sustainability.
Technological development and continuous improvement are the goals that we have set for ourselves, and we are determined to pursue them.
Our every action, project, initiative or decision is based on strict observance of the law, labour protection and protection of
the environment, safeguarding the interests of our shareholders, employees, clients, trade and financial partners, local communities and groups, creating value for every stakeholder.
CHARACTERISTICS OF THE SHAREHOLDER STRUCTURE
Shareholders' agreements
Shareholding threshold for the submission of slates for the appoinment of corporate bodies and officers
YES/NO % sharecapital
No -
- 1%
The sea is our natural element, the one we understand better and faster than the rest. In every epoch, we have built ships equipped with state-of-the-art technology that sail the seas from north to south and from east to west. Today we look towards the future, ready to take on new challenges in order to build the cruise ships, naval vessels, offshore
units, ferries and luxury yachts that will play a leading role in the seafaring history of tomorrow. Because our hallmark has always been the focus on our values and the courage to change.
The values live in our people, in our relationships with partners, in our actions to implement our new Mission and Vision.
OUR STRENGTHS
SYSTEM | TECHNOLOGICAL |
INTEGRATOR CAPABILITIES | LEADERSHIP |
SUSTAINABILITY | TAILOR MADE | BUSINESS |
PRODUCTS | DIVERSIFICATION |
FLEXIBLE & GLOBAL | WIDE PORTFOLIO |
PRODUCTION NETWORK | OF CLIENTS & PRODUCTS |
VALUES
PEOPLE | |||||||||
Everything we do focuses on enabling the growth, enhancement | |||||||||
and training of people, based on the daily attention we pay to the | |||||||||
quality of our work and our relations with others | SUSTAINABILITY | ||||||||
INNOVATION | SAFETY | ||||||||
We aim at continuously improving | We ensure high levels | ||||||||
our products and working methods | of occupational safety | ||||||||
through technological innovation | and health | ||||||||
CUSTOMER FOCUS | INTEGRITY | ||||||||
We meet customer requirements | We take responsibility for our actions and | ||||||||
and we rigorously honor our | we put great care into our work, adhering | ||||||||
commitments | to strict principles of ethics, loyalty and | ||||||||
professional fairness |
16 | 17 |
FINCANTIERI GROUP
FINCANTIERI GROUP
OUR SUSTAINABILITY STRATEGY
Our business model
We are able to produce different types of units at the same time, and we have the flexibility to cope with any changes occurring during construction. Our products feature a high level of personalization and, in many cases, are prototypes with cutting- edge technological solutions. As such, they require significant efforts in terms of design, procurement, production, planning and order management. We act as a systems integrator, usually acting as the prime/ general contractor, managing the project for vessel construction as a whole and taking on responsibility for this.
Typically, while there are differences
due to the strategic business area and product type, for each order we develop directly project management, design, hull procurement and manufacture, while our role mainly involves integration and coordination of a qualified network of expert suppliers for the preparation of systems, accommodation and, for naval vessels, weapons systems. In terms of business model we have adopted a make or buy strategy for each step of development and construction of the vessel order, with the objective of keeping core skills and high value-added activities within the Group and outsourcing to qualified suppliers specialist activities that are low value-added or non- essential.
For us, a company is sustainable when it generates value with the future and not just the present in mind, namely when it also generates value for those who come after us. To do this, we work so that every person in the Group understands the value of being sustainable and reflects in their everyday work the fundamental principles of social responsibility, undertaking and contributing to satisfying the stakeholder expectations today and tomorrow, creating a virtuous cycle that generates synergy and shared, proactive commitment. Sustainability is not just an opportunity but a duty and a real mission to represent a model of excellence in the world. Being sustainable means constantly improving health and safety in the workplace, developing technological innovation, promoting a responsible supply chain, maintaining customer satisfaction
We are also committed to contributing to the Sustainable Development Goals (SDGs) of the United Nations 2030 Agenda for Sustainable Development, approved by the General Assembly in 2015. These are common sustainable development goals for today's complex social challenges. These goals are an important reference for the international community and for Fincantieri in conducting its business.
BUSINESS MODEL: SUMMARY DIAGRAM
DESIGN | ||||
CONTRACT | PROJECT | FINANCING | PRODUCTION | GUARANTEE AND |
ACQUISITION | MANAGEMENT | AFTER SALES | ||
PROCUREMENT
For more information on the business model, see the website www.fincantieri.com/en/group/business-model
and trust, engaging with local communities by supporting them and, last but not least, reducing environmental impact by helping to combat climate change. This is all with the aim of finding a tomorrow that is better than today.
As a sign of our commitment and the importance of increasing integration of sustainability in our strategic choices, in 2019 we joined the United Nations Global Compact, the most wide-ranging business sustainability initiative in the world. This is a voluntary initiative to adopt ten universal principles related to human rights, labour, the environment and the fight against corruption, which promote the values of sustainability in the long term through political actions, business practices and social and civil behaviour.
18 | 19 |
FINCANTIERI GROUP
FINCANTIERI GROUP
Sustainability Governance | sustainability, we have a Sustainability | ||
Governance Model that provides for: | |||
To guarantee adequate protection and | |||
monitoring of processes associated with | |||
ELISABETTA | |||
LUCA | OLIVERI | PAOLA | |
CHAIRMAN | |||
ERRICO | MURATORIO | MULTIFUNCTIONAL | |
WORKING GROUP | |||
FEDERICA | |||
BOARD | SANTINI | SUSTAINABILITY | |
OF | UNIT | ||
DIRECTORS |
Our sustainability path
We have decided to structure our sustainability path by adopting an integrated strategy that is capable of combining business growth and financial stability with social and
STAGES OF THE SUSTAINABILITY PATH
environmental sustainability, creating value in the long term. This is why the important (material) topics for the Group have been integrated into its business strategy and why the Fincantieri Group's Sustainability Plan has been implemented.
SUSTAINABILITY | LOCAL |
REPRESENTATIVES | |
COMMITTEE | |
ABROAD | |
SUSTAINABILITY COMMITTEE
Set up in 2016 by Fincantieri's Board of Directors, it is composed of 4 independent members. In accordance with the ByLaws and the Corporate Governance Code for listed companies, the Committee is tasked with supporting, with adequate investigative activities, both proactive and advisory, the assessments and decisions made by the Board on sustainability issues connected with the Company activities and the dynamics of its interaction with all stakeholders. In particular, the Committee supports the Board in relation to the Company's respect for and promotion of human rights, labour rights, the environment, transparency and combating corruption, health and safety within the Company's activities, the rights of all stakeholders, product liability and its innovation. The Committee has the right to access the company information and functions necessary in order to perform its duties. In order to carry out its tasks, the Committee may use external consultants, through the Company's structures, provided they are suitably bound to the necessary confidentiality.
The Chairman of the Committee reports on the Committee's activities to the Board of Directors at the earliest opportunity. The Committee met 6 times in 2019.
Definition | |
MATERIAL TOPICS | |
Identification | |
STAKEHOLDERS | |
Preparation | Identification |
SUSTAINABILITY | SUSTAINABILITY |
REPORT | RISKS |
and related section | |
on the website |
SUSTAINABILITY UNIT | MULTIFUNCTIONAL WORKING GROUP |
LOCAL REPRESENTATIVES ABROAD
Definition | Definition |
OBJECTIVES, TARGETS | |
It reports directly to the Deputy Chief Financial Officer, coordinates sustainability activities, ensures compliance with the commitments undertaken, monitors the progress of projects and achievement of the sustainability objectives while continually keeping the Sustainability Committee informed.
It supports the Sustainability unit by helping prepare the Sustainability Report and defining objectives, targets and timescales for the sustainability commitments undertaken by the Group. The Working Group is made up of representatives from the departments most involved in sustainability issues.
They represent the VARD group, Fincantieri Marine Group and Fincantieri Marine Systems North America Inc..
They support the Sustainability unit and the Working Group by collecting and managing the information
for the Sustainability Report and coordinate in turn with a working group, specifically dedicated to sustainability.
AND TIMESCALES | COMMITMENTS |
20 | 21 |
FINCANTIERI GROUP | FINCANTIERI GROUP |
Who are our stakeholders?
We consider listening to and involving our stakeholders is paramount in order to understand their needs, their interests and their expectations. Stakeholders' involvement allows us to develop long-term relationships which become a source of competitive advantage for our Group.
STAKEHOLDERS
In 2017, we analysed and identified the main categories of stakeholders, both within and outside the Group. More specifically, consideration was given to those stakeholders towards whom Fincantieri has responsibilities and those persons or entities able to influence the Group's performance; their level of representativeness and authoritativeness have also been considered.
For each group of stakeholders, the main tools, listening channels and frequency with which they are contacted are identified with the aim of gathering their expectations and needs and communicating the results achieved and the programmes promoted by the Group. Responsibility for relations with the various stakeholders is spread across the whole Group, with specific functions
constantly engaging with their individual groups of stakeholders.
ENVIRONMENT Fincantieri's mission is to become a model of excellence in environmental protection, and it therefore adopts, in its strategic choices and business processes at all levels, the principles of environmental sustainability when carrying out its work
Direct contact with bodies and ad hoc working parties
Continuous dialogue and periodic meetings
FINANCIAL COMMUNITY
Financial dialogue is constant, in compliance with the law and in line with best working practices, ensuring complete transparency
Press releases, periodic presentation of financial results, conference calls, shareholder meetings, meetings with investors and analysts, one-to-one presentations, road shows and shipyard tours. E-mail address dedicated to Investor Relations for institutional investors and small shareholders
COMMUNITY Fincantieri is aware of its role in the local community and considers the demands of the latter, collaborating systematically with all the relevant figures in the area. Fincantieri promotes proactive initiatives that foster the development of the local community and areas where the Company operates
Participation in working parties, meetings with representatives from NGOs and non-profit organizations, civil society institutions and associations, press conferences. Periodic meetings with schools and universities to discuss and develop topics for research, internships, work-study schemes
Continuous dialogue and periodic meetings
FREQUENCYCHANNELS AND TOOLSSTAKEHOLDERS
Frequency as set by law and internal organizational models; dialogue with investors is continuous and related to investor engagement strategies; dialogue with analysts is continuous and related to analyst engagement strategies
CUSTOMERS
Fincantieri always listens to its customers' needs, each ship is the product of a strong relationship with the shipowner
The entire shipbuilding process calls for a continuous relationship between the project manager and the customer and their staff
Direct, continuous relationship
SUPPLIERS AND PARTNERS Fincantieri suppliers are a valuable strategic resource. That is why the Company promotes long-term relationships and sharing of responsibilities and development
Meetings with strategic suppliers, dedicated audits at selected suppliers, feedback questionnaires. Various activities related to health and safety topics
Continuous dialogue and periodic meetings
LABOUR UNIONS Fincantieri confirms the importance of hands-on representation of its workers through suitable levels of involvement, awareness and the assignment of co-responsibility for production objectives and issues of common interest. Accordingly, a new system of industrial relations has been implemented in line with the relevant commercial, economic and production context
Meetings, working parties/discussions and the establishment of appropriate joint bodies to address various topics with the labour unions on all levels
Continuous dialogue and periodic meetings
HUMAN RESOURCES
At Fincantieri people come first. Constant collaboration and cooperation allow for individual and group growth, making ideas and practices, responsibilities and actions a common factor
Days dedicated to education, individual performance reviews, discussions with labour unions and employee representatives, involvement in specific initiatives, and performance evaluation meetings. Courses, various activities, e-learning related to health and safety topics
Continuous dialogue and periodic meetings
INSTITUTIONS AND PUBLIC ADMINISTRATION
The distinct nature of Fincantieri's business calls for a continuous relationship with Institutions and the Public Administration
Direct contacts, internet, ad hoc working groups, definition and development of common projects
Continuous dialogue and periodic meetings
22 | 23 |
FINCANTIERI GROUP
FINCANTIERI GROUP
In particular, we are in constant dialogue with investors, analysts and rating agencies, providing reliable information on the Group's activities so as to increase the market's confidence in us and create long-term relationships. The annual occasions where shareholders meet the Company's top management are the Shareholders' Meeting and Investor Day. Over the year we organized 148 events for groups and individuals, including teleconference meetings and visits to facilities.
We also dialogue with national and international legislators and institutions to maintain constructive collaboration, interpret and apply new regulations correctly and share expertise, initiatives and projects. We contribute to public consultations defining new legal measures and regulations for the industry, providing practical indications.
To support the development of its business, Fincantieri S.p.A. and its subsidiaries participate in the governance of various national and international associations, stimulating, along with the other associates, effective, systematic action in the areas of
Fincantieri in the media
An important role in spreading the sustainability culture is played by the Marketing Communication and Media Relations department in conveying all the messages, which originate from direct dialogue with management both inside and outside the Group.
In 2019, the initiatives promoted, in particular by the Media Relations office, have produced numerous articles that mention Fincantieri, divided as follows:
NUMBER OF ITEMS
TV & RADIO | |
2,000 | of which 37%on |
sustainability issues | |
7,200 | |
of which 44%on | |
sustainability issues |
Another important tool in Fincantieri's communications strategy is use of social networks. In 2019, there were about 25,500
In 2019, we involved our employees, customers, suppliers and partners, the financial community and other stakeholders in helping us understand where we can and should make the most impact, in an initial path of engagement that we are committed to developing over time. We have identified, together with them, the material issues considered relevant for both the Company and its stakeholders.
Which material topics have been identified by our stakeholders?
We launched and have since consolidated over time a process called materiality analysis, aimed at identifying material topics for sustainability, namely those topics that are relevant from an economic, social and environmental point of view for Fincantieri and its stakeholders. We use the results of the analysis to define the Group's commitments, the objectives of the Sustainability Plan and the reporting of the Sustainability Report.
To define the most significant topics we analysed both the perception of the topics from the Company's perspective, through a questionnaire, and from the perspective of customers, suppliers and partners, the financial community and other stakeholders through a special online survey, asking them to evaluate the material topics identified by the Company.
Both internally and externally the topics were evaluated on a scale of 1-4, where 4 is "highly significant". A materiality threshold was defined (corresponding to 2), beyond which an issue must be accounted for.
Joint consideration of internal and external significance led to the identification of the material topics. The materiality matrix has been updated based on the responses of the stakeholders contacted and a new material topic deemed relevant by both the Company and the stakeholders has been added: cyber security.
research and development and promotion of the various stakeholders' interests.
The main organizations and associations with which we actively collaborate are Confindustria, Federmeccanica, ASSONAVE, Federazione del Mare, Euroyards, Vessel for the Future, Surface Navy Association, etc.
For more information on memberships and participation in associations, see the website www.fincantieri.com/en/ sustainability/governance/memberships-and-participation-in-associations
We meet regularly with our customers, employees and representatives of the communities where we operate in the pursuit of constant collaboration and continuous improvement.
articles online.
FOLLOWERS ON SOCIAL MEDIA
LINKEDIN with over 147,000followers (+50,000 compared to 2018)
with over 170,000followers when we also include subsidiaries
INSTAGRAM with over 24,000followers (+11,000 compared to 2018)
with over 46,500followers when we also include Fincantieri Yachts
YOUTUBE with over 6,000followers (+ 2,200 compared to 2018)
PROCESS FOR STAKEHOLDER ENGAGEMENT ON MATERIAL TOPICS - 2019
231STAKEHOLDERS INVOLVED
17MATERIAL TOPICS | NEW MATERIALITY | PRESENTATION TO | APPROVAL BY THE BOARD |
IDENTIFIED | MATRIX | THE SUSTAINABILITY | OF DIRECTORS |
COMMITTEE | |||
17TOP MANAGERS | |||
INVOLVED |
24 | 25 |
FINCANTIERI GROUP
PROCESS FOR DEFINING THE MATERIALITY MATRIX
IDENTIFICATION OF TOPICS
Analysis of topics that are relevant for international standards, rating agencies and international organizations
Industry analysis and benchmarking with reference to industry best practices
Analysis of Fincantieri's policies, procedures and main documents
DEFINING THE RELEVANCE OF THE TOPICS IDENTIFIED
INTERNAL EVALUATION | Multifunctional | EXTERNAL EVALUATION | |||
Evaluation of the topics by the members of the | Evaluation of 17 topics by external stakeholders | ||||
Working Group and validation of top managers | |||||
Identification of 17 relevant topics | |||||
INTERNAL MATERIALITY | EXTERNAL MATERIALITY |
MATERIALITY MATRIX 2019
4.00
3.80
Health and safety in the workplace
Innovation, research and development | Governance and | Economic | |||||
3.60 | and financial sustainability | ||||||
Climate change | business integrity | ||||||
Environmental impact | Procurement activities | Product quality and compliance | |||||
3.40 | Environmental management | of products and services | with technical standards | ||||
Human rights | Customer satisfaction | ||||||
Company welfare | Training and education | Cyber security | |||||
3.20 | Protection | ||||||
Diversity and equal opportunity | of employment and | ||||||
Stakeholders | industrial relationships | ||||||
3.00 | |||||||
Relations with | |||||||
2.80 | |||||||
local communities | |||||||
2.60 | |||||||
2.40
2.20
2.00
2.00 | 2.20 | 2.40 | 2.60 | 2.80 | 3.00 | 3.20 | 3.40 | 3.60 | 3.80 | 4.00 |
Fincantieri | ||||||||||
Governance | Economic responsibility | Human resources responsibility | Social responsibility | Product responsibility | Environmental responsibility |
The materiality matrix is reviewed annually in accordance with the Standards of the Global Reporting Initiative and approved by the Board of Directors.
The description of the material topics is available in the annexes p. 190
FINCANTIERI GROUP
What are our sustainability risks? | Governance Code for the Italian Stock Market. |
In Fincantieri the Risk Office coordinates and | |
We have Enterprise Risk Management (ERM) | supports management with regard to risk |
processes and systems to detect, evaluate | assessment tools and methodologies, and |
and monitor the main company risks (Risk | aggregates and consolidates the results of |
Universe), in compliance with the requirements | their mitigation. |
for listed companies as per the Corporate
RISK UNIVERSE
EXTERNAL RISKS
- Economic Cycle (Macro and Sectorial) | - Laws and Regulations | - Supplier Dependency |
- Customers (Business Concentration) | - Country Risk | - Competition |
- New Technologies | - Economic Policy (incentives) | - Natual Disasters and Catastrophes |
INTERNAL RISKS
FINANCIAL | OPERATIONAL AND SUPPLY CHAIN | ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) |
Price: | - Product Technology | - Reputational Risk |
- Exchange Rate | - Projects Quality and Safety | - Ecologically compatible product |
development | ||
- Industrial productivity | ||
- Energy, Raw Materials and | - Environment | |
(operational efficiency) | ||
Components' Price | - Implementation of the Mission and | |
- Warehouse Management | ||
- Interest Rate | Values in terms of Sustainability | |
- Governance, Strategy and | ||
Liquidity: | - Management System | |
- Organizational Complexity | Sustainability Compliance | |
- Cash Flow | - Rating agencies and sustainability | |
of the Yard | ||
- Access to credit | indices | |
- Outsourcing | - Sustainable Supply Chain | |
Credit: | - Project Management | - People |
- Counterparty Risk | - Business Interruption | - Investor & Public Relations |
- Training, incentives, and assessment | ||
- Credit Scoring | GOVERNANCE/COMPLIANCE | |
of the sustainability performance | ||
PLANNING AND REPORTING | - System of Powers and Duties | INFORMATION MANAGEMENT |
Management | ||
- Corporate Data and Information | ||
- Planning and Budgeting | - Segregation of Duties | |
Protection | ||
- Evaluation | ||
- Corruption and Frauds | - Reliability and Integrity | |
- Controlling | - Health, Safety and Environment | - IT infrastructure Management |
- Disclosure | HUMAN RESOURCES | STRATEGIC |
- Taxation | - Change Management | - Brand Positioning |
LEGAL | - Labour Relations | - Production Capacity |
- Intellectual Property | - Human Resources Management | - Customer Satisfaction |
- Business Portfolio | ||
- Litigation and Disputes | - Staff Retention | |
- Partnerships and Alliances | ||
- Performance Management | ||
- Criminality (common and organized) | Management | |
and terrorism | - Labour Cost | - Acquisition, Integration and Disposal |
26 | 27 |
FINCANTIERI GROUP
FINCANTIERI GROUP
In 2017, the Risk Officer integrated the Risk Universe with risks concerning sustainability. The integration process was conducted as follows:
- mapping of sustainability and climate change risks by business sector in a context similar to that of Fincantieri;
- initial identification of 16 potential categories of sustainability risk;
- comparison with Fincantieri's company risk model and with the materiality matrix;
- exclusion of certain sustainability risks because they were not considered applicable to the company or because they were already present in Fincantieri's Risk Universe;
- integration of the risks identified above into the Risk Universe, in the specific Environmental, Social and Governance (ESG) category.
The 10 sustainability risks included in Fincantieri's Risk Universe are shown below; their management is described in the chapters
of this Sustainability Report.
The reporting required for the information to be provided to the company bodies envisages a specific report on ESG risks for the Sustainability Committee, with the aim of facilitating its function of providing guidance to the Company.
MACRO AREA | RISK EVENT |
Rating agencies and | |
sustainability indices |
Reputation risk
Investor & Public
Relation
Governance
Governance, Strategy
and Sustainability
Compliance
DESCRIPTION OF RISK
- Risk of not achieving an excellent sustainability rating with specialized rating companies and analysts, or of a negative impact on reputation following a poor sustainability rating
- Risk of damage to the Company brand that exposes it to loss of clients, profits and the competitive advantage gained on the market
- Risk of not adopting Public Relations strategies on the sustainability issues or transmission of inconsistent Company messages regarding environmental, social and governance initiatives. Risk of not using the lever of sustainability to build and broaden relations with stakeholders. This category includes the risk that relationships with local, national and international counterparties (local cities and authorities/associations, legal and government authorities, industrial associations, etc.) are inefficient or ineffective, influencing the Company's ability to compete
- Risk that the Governance Model is not adequately communicated to all levels of the Company, creating ineffective communication regarding sustainability issues among the stakeholders, Board of Directors, and company management, incorrect delegation of powers, and inappropriate decisions on sustainability. This category also includes the risk of lack of implementation of monitoring programs for activities related to sustainability or the risk of inadequate preventive or investigative checks and controls relative to sustainability performance
MANAGEMENT METHOD
Chapter:
A sustainable Group
Chapter:
Responsible Governance/ Our rules on fair conduct
Chapter:
A sustainable Group/Our sustainability strategy
Chapter:
A sustainable Group/Our sustainability strategy
MACRO AREA | RISK EVENT |
Training, incentives, and assessment of the sustainability performance
Human
resources resp.
People
Ecologically | |
compatible product | |
Product resp. | development |
Governance, Sustainable
economic, social and Supply Chain environmental resp.
DESCRIPTION OF RISK
• Risk of the absence or inadequacy of training programs with consequent |
lack of skills in relation to sustainability issues. This category also includes |
the risk that individual performance objectives are not aligned with or specific |
enough to guide conduct to support the sustainability strategy, and/or there |
are no adequate indices to measure sustainability performance |
• Risk that the Company, within its strategy of sustainable growth, does not |
implement processes aimed at valuing human capital, guaranteeing respect |
for diversity and equal opportunity, protecting human rights, and ensuring |
the health and safety of the workers |
• Risk that the Company invests in and builds products and/or uses |
materials incompatible with environmental protection |
• Risk that due diligence on potential suppliers is not conducted adequately |
and of lack of monitoring of respect for environmental and social regulations |
in contracts concluded, with consequent execution of activities not in line |
with the sustainability principles (correct use of natural resources, protection |
of individual rights, etc.) |
• Risk that the Company adopts inadequate measures for incorporating |
MANAGEMENT METHOD
Chapter:
Fincantieri for society/For our people/We train and enhance our people with an eye on excellence/Our commitment to health and safety
Chapter:
Fincantieri for society/For our people/We train and enhance our people with an eye on excellence/Diversity and inclusion as an asset/ Our commitment to health and safety
Chapter: Fincantieri for the environment/To promote sustainability/Our ever greener ships
Chapter:
Fincantieri for society/For a sustainable supply chain/ How we monitor them
Implementation | • Risk of lack of integration or poor integration in company processes | |
and activities of the sustainability principles (including ethics) defined | Chapter: | |
of the Mission and | in the Sustainability Governance Model. This category includes the risk | |
A sustainable Group/Our | ||
Values in terms | relating to the absence or inadequacy of a monitoring and control process | |
sustainability strategy | ||
of Sustainability | for environmental and social issues, as well as inadequate assignment of | |
resources for this purpose |
Environment
Environmental
Resp.
sustainability principles in its evaluation of environmental issues and |
performs activities not in line with sustainability principles. This category |
also covers lack of activation of controls aimed at preventing environmental |
damage or lack of/inadequate evaluation and implementation of |
programmes for the recovery of biodiversity following environmental |
damage |
Chapter: Fincantieri for the environment/To reduce our impact
28
29
FINCANTIERI GROUP
Which are our sustainability commitments?
Our mission, values and principles mean that we must commit to increasingly sustainable and responsible development. We have defined our commitments for each material topic with the aim of contributing
MACRO AREA
to a healthy, resilient, sustainable society, where people can advance and prosper. The Group's commitments are contained in the Charter of Sustainability Commitments approved by the Board of Directors.
MACRO AREA
- Promotion of the sustainability culture in line with the Group Values, encouraging managers to think in a sustainable manner within their sphere of influence
Governance
• Guarantee protection of the computer systems and data by minimizing the risks of | |
Cyber security | network breaches and corruption of data or sensitive processes, and develop the cyber |
security strategy for products and services |
• Promotion and maintenance of a responsible supply chain that shares our values
and is based on long-lasting relationships founded on integrity, transparency and respect
Protection of employment and industrial relationships
Human
resources resp.
• Continuous improvement of the health and safety conditions of workers
• Collaboration with governments, national and international associations to adopt policies and strategies to contribute to a healthy, inclusive, resilient and sustainable society for everyone
• Listen to demands and expectations in order to maximize customer satisfaction
Climate change
Environmental
resp.
• Development of ecologically sustainable products and services with the aim of contributing to a circular and low carbon economy
The Charter of Sustainability Commitments is available on the website www.fincantieri.com/globalassets/sostenibilita2/pdf/fincantieri_charter- La Carta degli Impegni di Sostenibilità è d ponibile sul sito internet www.fincantieri.com/it/sostenibilita/governance/i-nostri-impegniof-sustainability-commitments.pdf
30 | 31 |
FINCANTIERI GROUP
FINCANTIERI GROUP
Which are our sustainability objectives?
Through the Sustainability Plan we highlight our strong intention to be a responsible Group, whose policies are aimed at generating and distributing increasing resources to all stakeholders and with a commitment that is first and foremost shown in the sustainable management of its business. It is the Group's strategic approach to sustainability and it addresses some global challenges (the UN's Sustainability Development Goals - SDGs) and the
STRATEGIC DIRECTION AND SUSTAINABILITY
BUSINESS PLAN
4 Pilastri
Long term visibility
Backlog supported by positive underlying momentum, particularly in the cruise segment
New horizons and markets
Expansion into new geographical areas and development of after-sales services
Innovation
Proven capability to develop cutting-edge designs and technological solutions to meet clients' evolving needs
Streamlined production
Continued focus on seamless execution through streamlining of processes and production
commitments undertaken by Fincantieri are broken down in the Charter of Sustainability Commitments into qualitative and quantitative targets that can be measured over time. With the integrated strategy (Sustainability Plan and Business Plan)
we are able to manage its response to the challenges posed by the market of today and tomorrow in a sustainable way.
The Sustainability Plan has been updated with the integration of the new material topic of cyber security, acquiring the
SUSTAINABILITY PLAN
6 Horizontal topics
1Governance and business integrity
2Cyber security
3Economic and financial sustainability
- Climate change
- Relations with local communities
- Human rights
objective from the 2018-2022 Business Plan; | generally to the Group's growth; |
it comprises 17 material topics such as the | • the other 11 material topics are associated |
materiality matrix and 32 objectives to be | specifically with one of the 4 Pillars and |
achieved in the short, medium and long term. | show a clear correlation between the |
business drivers and those aspects of | |
The 17 material topics for Sustainability | sustainability that the Company recognises |
are linked to the 4 Pillars of the Business | as significant; |
Plan (Long-term visibility, New horizons | • Fincantieri's objectives contribute in |
and markets, Innovation, Streamlined | particular to the achievement of the 6 |
production). In particular: | SDGs that Fincantieri has recognised as |
significant for its business and in line with | |
• 6 material topics are horizontal in that | its strategic direction. |
they involve all 4 Pillars and contribute |
11 Specific topics
- Protection of employment and industrial relationships
- Training and education
- Diversity and equal opportunity
10. Company welfare | Growth |
11. Customer satisfaction
12. | Product quality, compliance with technical standards | Shareholders | ||||
13. Innovation, research and development | return | |||||
14. Environmental impact of products and services | ||||||
15. | Health and safety in the workplace | |||||
16. | Procurement activities | |||||
17. | Environmental management | Profitability | ||||
32 | 33 |
FINCANTIERI GROUP
FINCANTIERI GROUP
The Sustainability Plan is approved by the Board of Directors of Fincantieri S.p.A.
Responsibility for achieving the objectives in the Sustainability Plan lies with the different corporate departments involved, which dedicate resources, tools and know-how to implement the actions underlying
Sustainability objectives achieved in 2019
those objectives.
The Plan's objectives are revised on a yearly basis taking in account the results achieved and adding the new needs that arise over time. The reference base year against which the quantitative targets in the Plan are defined is 2017.
All the 2019 objectives of the 2018-2022 Sustainability Plan have been achieved and two 2020 objectives have been completed early (Including a sustainability module in the Fincantieri Corporate University training programmes and Company car pooling project). The pages in this Report that
describe the related initiatives are marked with the following logo:
PLAN
OBJECTIVE
COMPLETED
IN 2019
TOPIC | COMMITMENT | OBJECTIVES | PAGE | |
Promotion of the sustainability culture in line | Gradual assignment of sustainability | |||
with the Group Values, encouraging managers | ||||
objectives in the Company's variable | 141 | |||
to think in a sustainable manner within their | ||||
remuneration system | ||||
sphere of influence | ||||
Maintenance of the Corporate Governance | ||||
Governance and | system and risk management (including | Structure an Emergency Response & Crisis | 135 | |
business integrity | sustainability risk) in line with international best | Management process in Safety & Security | ||
practices | ||||
Integration of sustainability topics in dialogue | Implement an external stakeholder | |||
TOPICS | with stakeholders (timeliness, accuracy, and | 25 | ||
engagement programme | ||||
exhaustive flow of information to stakeholders) | ||||
HORIZONTAL | Promotion of research projects to develop | |||
Support for research to improve the analysis and | new solutions for energy savings or reduction | |||
Climate change | management of risks associated with climate | of emissions in collaboration with research | 183 | |
change | institutes / universities on issues associated | |||
with climate risks | ||||
Relations with | Dialogue with and support for local communities | |||
through social, cultural and educational | Commitment to managing social activities | 145 | ||
local communities | ||||
initiatives. | ||||
Respect for human rights through the adoption | Annual audits to assess and monitor the | |||
most critical suppliers in terms of human | ||||
Human rights | of policies and creation of programmes to | 96 | ||
rights, health and safety and the environment |
promote diversity and inclusion within the Group | (second party audit) |
TOPIC | COMMITMENT | OBJECTIVES | PAGE | |
Training and | Promotion of growth, training and enhancement | Include a sustainability module in the | ||
VISIBILITY | Fincantieri Corporate University training | 126 | ||
education | of human capital | |||
programmes | ||||
LONG TERM | Diversity and equal | Promotion of programmes to promote diversity | Commitment to human rights and diversity | 52 |
opportunity | and inclusion within the Group | |||
Company welfare | Increase the wellbeing of people through | Company car pooling project | 166 | |
innovative solutions rather than traditional ones | ||||
Product quality, | Continuous improvement of quality and respect | Keep ISO 9001 certifications on the | ||
compliance | for technical standards, in all phases of the | |||
Quality Management Systems and product | 114 | |||
INNOVATION | with technical | production process to meet the high standards | ||
Definition of an eco-design system to | ||||
Environmental | ||||
standards | required by the business | certifications in line with market expectations | ||
Development of ecologically sustainable | ||||
impact of products | products and services with the aim of | promote the development of environmentally | 180 | |
contributing to a circular and low carbon | ||||
and services | sustainable ships | |||
economy | ||||
PRODUCTION | Promotion and support of a responsible and | Code of Ethics for suppliers | 54 | |
Procurement | sustainable supply chain that shares our values | Organise meetings and opportunities for | ||
practices | and is based on long-lasting relationships | |||
dialogue with suppliers as well as training on | 102 | |||
founded on integrity, transparency and respect | ||||
STREAMLINED | sustainability issues | |||
Environmental | Increase employee awareness of environmental | Launch the sustainable office project (10 | 160 | |
management | impact and promote virtuous behaviour | rules) | ||
The purpose, methodology used and the full Sustainability Plan describing the objectives, targets and timescales are available on the website www.fincantieri.com/en/sustainability/governance/sustainability-plan
34 | 35 |
RESPONSIBLE GOVERNANCE
- CORPORATE GOVERNANCE AND REMUNERATION POLICY
- OUR SYSTEM OF INTERNAL CONTROL AND RISK MANAGEMENT
- OUR RULES ON FAIR CONDUCT
- WE RESPECT HUMAN RIGHTS
- WE PROTECT DATA AND INFORMATION
36 | 37 |
FINCANTIERI GROUP
FINCANTIERI GROUP
Ethics, social responsibility, transparency, lawfulness, fairness and sustainability are Fincantieri's absolute values
governance model in the clear and responsible performance of the Group's business,
Shareholders' Meeting | Board of Directors |
We are aware of the role played by and importance of an appropriate corporate
contributing significantly to the creation of sustainable value for all stakeholders in the medium to long term.
Fincantieri performs its business with respect for the law, internal regulations and professional ethics. To this end, we have developed a set of policies and guidelines that support the Company on a day-to-day basis.
The Shareholders' Meeting is the company body through which the shareholders participate in Company decisions on topics reserved for them according to law and Company By-laws.
The Company's Board of Directors (BoD) is the Company's central organization for Corporate Governance, holding the widest powers for its ordinary and extraordinary administration, including the definition of strategic direction, organization and control of the Company and the Group. The Board of Directors currently consists of ten members, six of whom are independent, and was nominated during the Ordinary Shareholders' Meeting held on 5 April 2019 for financial years 2019, 2020, and 2021.
CORPORATE GOVERNANCE AND
REMUNERATION POLICY
Fincantieri's corporate governance model | Corporate Governance Code issued by the |
is in line with the recommendations of the | Italian Stock Market and has the following |
structure. |
COMPOSITION OF THE BOARD OF DIRECTORS AND ITS COMMITTEES ON THE DATE OF THE REPORT
Sh. meeting to app. fin. | stat. 2021 |
Sh. meeting to app. fin. | stat. 2021 |
BOARD OF | SUPERVISORY |
STATUTORY | |
BODY | |
AUDITORS | |
SHAREHOLDERS' MEETING
BOARD OF DIRECTORS | ||||||
CHIEF EXECUTIVE | CHAIRMAN | CONTROL | REMUNERATION | NOMINATION | SUSTAINABILITY | AUDIT |
AND RISK | ||||||
OFFICER | (DIRECTOR IN CHARGE | COMMITTEE | COMMITTEE | COMMITTEE | FIRM | |
OF THE ICRMS) | COMMITTEE | |||||
Barbara Alemanni | Sh. meeting to app. fin. stat. 2021 | |
Sh. meeting to app. fin. stat. 2021 | C | |
Luca Errico | Sh. meeting to app. fin. stat. 2021 | |
Sh. meeting to app. fin. stat. 2021 | C | |
Elisabetta Oliveri | Sh. meeting to app. fin. stat. 2021 | C |
Sh. meeting to app. fin. stat. 2021 | ||
Federica Santini | Sh. meeting to app. fin. stat. 2021 | |
Federica Seganti | Sh. meeting to app. fin. stat. 2021 | C |
GENERAL | RISK | HEAD OF |
INTERNAL | ||
MANAGER | OFFICER | |
AUDITING | ||
CHIEF | |
FINANCIAL | OFFICER IN |
OFFICER | CHARGE |
1 The Member of the Control and Risk Committee who replaces the Director Santini when the | C: Chairman of the Committee. |
committee, meeting as the RPT Committee, examines major operations with related parties. | √: Satisfies the requirements. |
CRC: Control and Risk Committee. | -: Not applicable. |
RC: Remuneration Committee. | X: Member of the Committee. |
NC: Nomination Committee. | |
SC: Sustainability Committee. |
38 | 39 |
FINCANTIERI GROUP
FINCANTIERI GROUP
OTHER INFORMATION ON THE BOARD OF DIRECTORS *
AVERAGE FOR LISTED COMPANIES **
Number of Directors | 10 | 10.0 | 10.9 |
Number of executives | 2 | 2.5 | 2.5 |
Number of non-executives | 8 | 2.9 | 2.9 |
Number of non-executives that do not | 2 | 2.9 | 2.9 |
qualify as independent under the Code | |||
Number of independent under the Code | 6 | 4.6 | 5.6 |
% less represented gender | 50 | - | - |
Average age of Directors | 56.3 | 57 | - |
No. of BoD meetings | 13 | 11.2 | 11.2 |
Their composition, responsibilities and methods of operation, as well as the powers and means assigned, are regulated by specific regulations approved by the Board of Directors when these Committees were established and later amended based on changes introduced over time to the Corporate Governance Code. All members of the Committees are non- executive Directors, mostly independent,
and have functional areas of expertise for performing the roles they have been assigned.
Board of Statutory Auditors
The Board of Statutory Auditors consists of three Standing Auditors and three Alternate Auditors appointed by at the ordinary Shareholders' meeting using a dedicated procedure. The Auditors in office satisfy the requirements of integrity, professionalism and independence.
% attendance at BoD meetings | 88.6 | 93 | - |
Average duration of BoD meetings | 104 min. | 138 min. | 153 min. |
Board evaluation | Implemented | 84.1% | - |
Position on multiple offices | Adopted | 47% | 58% |
- The statistical data of this table for Fincantieri refer to the composition and operation of the Board of Directors during 2019.
- Latest available data taken from the Assonime - Emittenti Titoli S.p.A. report: "Corporate Governance in Italy: corporate governance, remuneration and comply-or-explain (year 2019)" issued on 26 January 2020.
CHARACTERISTICS OF THE MEMBERS OF THE BOARD OF DIRECTORS
COMPOSITION OF THE BOARD OF STATUTORY AUDITORS ON THE DATE OF THE REPORT
MEMBERS | ROLE | EXPIRY OF TERM |
Statutory Auditor
Statutory Auditor
AREA OF EXPERTISE | AGE |
The Auditors act completely autonomously and
and the Chairman of the Board of Directors
11.1%
33.3% | 11.1% | INTERNATIONAL RELATIONS |
LEGAL | ||
FINANCIAL | ||
55.5% | 44.4% |
40.0%
20.0% 20.0%
independently from all shareholders. Therefore, an Auditor who - independently or on behalf of third parties - has an interest in a particular transaction/operation of the Company must promptly and fully inform the other Auditors
about the nature, terms, origins and extent of this interest. The Auditors are also obligated to respect the limits on multiple offices held as director and auditor in Italian joint stock companies provided for by applicable regulatory provisions and by the By-laws.
INDUSTRIAL |
PLANNING AND STRATEGY |
GENDER
50% | 50% |
MEN | WOMEN |
10.0% 10.0%
< 45 years 45/50 years 51/55 years 56/65years > 65
The Board of Directors has structured its organization, also establishing four dedicated Board Committees, that carry out proactive proposal and consultation tasks: the Control and Risk Committee, the Remuneration Committee, the Nomination Committee and the Sustainability Committee.
OTHER INFORMATION ON THE BOARD OF STATUTORY AUDITORS*
AVERAGE FOR LISTED COMPANIES **
Number of Auditors | 3 | - | - |
Average age of Auditors | 57.67 | 55.8 | - |
No. of meetings | 12 | 13.8 | 16.3 |
Average duration of meetings | 105 min. | 149 min. | 152 min. |
% attendance by Auditors | 100 | 97 | - |
- The statistical data of this table for Fincantieri refer to the composition and operation of the Board of Statutory Auditors during 2019.
- Latest available data taken from the Assonime - Emittenti Titoli S.p.A. report: "Corporate Governance in Italy: corporate governance, remuneration and comply-or-explain (year 2019)" issued on 26 January 2020.
For more information on Corporate Governance, see the Report on Corporate Governance and Ownership Structure, www.fincantieri.com/en/governance/corporate-governance-system/corporate-governance-reports
40 | 41 |
FINCANTIERI GROUP
FINCANTIERI GROUP
Remuneration policy
Policy is aimed at achieving the Company's strategic priorities and enhancing sustainable
The structure of the remuneration package is set out below.
Fincantieri's Remuneration Policy is approved annually by the Board of Directors, on the proposal of the Remuneration Committee. The Board of Directors is also the company body responsible for proper enactment of the Policy, that relies on the support of the Remuneration Committee, which acts to provide consultancy and proposals.
The adequacy, overall consistency, and concrete application of the Remuneration Policy are evaluated by the Remuneration Committee, as recommended by the Corporate Governance Code and as indicated in the regulations for the Committee. The Remuneration Committee consists of four non-executive members, three of whom
performance.
In continuation of the LTI Plan 2016-2018, on 27 March 2018, the Board of Directors approved the LTI Plan 2019-2021 which essentially follows the same structure though with the addition of another objective associated with sustainability.
The creation of sustainable value in the medium to long term, alignment of the interests of management with those of the shareholders and support for retention capacity are the primary objectives of this Plan, in line with the indications in the Corporate Governance Code and the best and most widespread market practices.
TYPE OF REMUNERATION
Fixed remuneration
Short-term variable remuneration (annual MBO)
PURPOSE | POSITIONS INVOLVED |
Remunerates the role and more | • Chairman |
specifically the responsibilities | • Chief Executive Officer |
assigned to the recipients, taking | • Non-executive Directors |
account, among other things, of the | • General Manager |
experience, quality of contribution | • Executives with Strategic |
made to achieving the business | Responsibilities |
results and level of excellence with | • Other Key Executives |
respect to the assigned duties. | |
Remunerates results achieved | • Chairman |
in the short term and is aimed | • Chief Executive Officer |
at expressing the industrial plan | • General Manager |
strategies into a series of annual, | • Executives with Strategic |
individual and group objectives, | Responsibilities |
capable of decisively influencing | • Other Key Executives |
the performances of the executives | |
involved. |
are independent and at least one of whom has adequate knowledge and experience in finance or pay policy, evaluated by the Board of Directors when nominated.
The parties covered by the Remuneration Policy are the Chief Executive Officer, the Chairman, the General Manager, Executives with Strategic Responsibilities and other Key Executives.
Management of the Remuneration Policy is delegated to the Chief Executive Officer, supported by the Human Resources
PAY-MIX2019-2021 LTI
25.0% | 41.8% | 38.0% | 36.0% | 29.9% |
75.0% | 19.9% | |||
22.0% | 20.3% | |||
21.8% | ||||
43.7% | 50.2% | |||
36.4% | 40.0% | |||
Medium-long term variable remuneration (Performance Share Plan)
Remunerates results achieved in the medium-long term and is aimed at improving the alignment of interests of the recipients with those of
the shareholders and supporting the retention capabilities for key resources.
The beneficiaries are individually identified at the discretion of the Board of Directors, on the advice of the Remuneration Committee, among the following persons:
- Chief Executive Officer
and, according to the Chief Executive Officer's indications, the following persons:
- General Manager
- Executives with Strategic Responsibilities
- Other Key Executives
and Industrial Relations Management. Verification of the qualitative and quantitative performance objectives and consequent determination of any sums of money due
to the interested parties is performed following approval of the financial statements for the year following verification by the Chief Executive Officer. The Remuneration
Chairman | Chief Executive | General | Executives | Other Key |
Officer | Manager | with Strategic | Executives | |
Responsibilities |
FIXED COMPONENT
SHORT TERM VARIABLE COMPONENT
MEDIUM-LONG TERM VARIABLE COMPONENT
For more information, see the Remuneration Report available on the website www.fincantieri.com/en/governance/remuneration
42 | 43 |
FINCANTIERI GROUP
OUR SYSTEM OF INTERNAL CONTROL AND RISK
MANAGEMENT
FINCANTIERI GROUP
The System of Internal Control and Risk Management System (ICRMS) of the Company is formed by a set of tools, organizational structures, and company procedures aimed at contributing business conduct which is honest, fair and consistent with the objectives set by the Board of Directors.
The ICRMS is integrated within the general organizational aspects and corporate governance system adopted by the Company and, taking into account the main reference models, allows and promotes the identification, measurement, management, and monitoring of the main risks as well as the dependability, accuracy, reliability and timeliness of the financial report. This system, based on leading international practices, is divided into the three traditional levels of control:
- 1st level: the operational functions identify and evaluate the risks and implement specific treatments for their management;
- 2nd level: the functions responsible for risk
control define the methods and tools for risk management and perform monitoring activities;
- 3rd level: the Internal Auditing function provides independent evaluations regarding the entire system.
The guidelines, approved by the Board of Directors, identify the main parties involved in the preparation and implementation of an effective internal control and risk management system, involving each of them based on their area of expertise.
It is also required that all employees of the Group, as part of their functions and responsibilities, actively intervene according to
the methods defined in the Group's regulatory system and internal procedures for the maintenance, updating, and correct operation of the ICRMS.
Following is a representative diagram of the parties involved in Risk Management at various titles.
Oversight | BOARD OF | Overall | BOARD | INTERNAL CONTROL | Support of |
orientation and | the Board's | ||||
STATUTORY AUDITORS | AND RISK | ||||
OF DIRECTORS | |||||
SUPERVISORY BODY | monitoring | COMMITTEE (CRC) | evaluations and | ||
decisions |
Assurance
INTERNAL (3rd level of
AUDITING defence)
Establishment and | DIRECTOR | |
maintenance | RISK OFFICER | |
RESPONSIBLE | ||
FOR THE ICRMS |
Implementation | MANAGEMENT |
of ERM Risk | (DIRECTORS, |
management at | DEPARTMENTS, |
UNITS) | |
all levels of the | |
organization |
For more information, see the Internal Control and Risk Management section on the website www.fincantieri.com/en/governance/internal- control-and-risk-management
As part of the ERM process, in 2019 the Risk Management Model that maps the persons responsible for managing and monitoring risks was updated in agreement with the Director in charge of ICRMS.
44 | 45 |
FINCANTIERI GROUP
OUR RULES ON FAIR CONDUCT
FINCANTIERI GROUP
We believe that success can be long lasting only with responsible, ethical business management; the Group's actions are performed with integrity, honesty and dedication and based on mutual trust, so that growth is also guided by the principle of shared values.
We conduct our business with respect for the law, internal regulations and professional ethics. To this end, we have developed a set of policies and guidelines that support us in our activities and which are described in various chapters of the Sustainability Report.
Code of Conduct
All those who work for Fincantieri, without exception or distinction, are committed to observing and ensuring the observance of the company's Code of Conduct, which, for the smooth operation, reliability and reputation of the Group, requires that all the activities are conducted in compliance with the law, with international conventions and in strict accordance with the human rights enshrined in the UN Universal Declaration.
application, and these corporate bodies/ officers may also make proposals to supplement or amend its provisions.
The Code of Conduct is available on the website www. fincantieri.com/globalassets/sustainability2/business- ethics/fincantieri_code_of_conduct.pdf
Organizational Model
Fincantieri has adopted an organization, management and control model according to
Policy on Human Rights - commitment for the respect of human rights and diversity
Corporate Security
Policy
Anti-corruption
Policy
Privacy Policy
Charter of Sustainability | |
Code of Conduct | Commitments |
Suppliers' Code of Ethics
Fincantieri Group's Policy on initiatives for the Community and Territory
CODES AND POLICIES
Purchasing Policy
Environment,
Health and
Safety Policy
Operating according to the principle of fair competition, with honesty, integrity, fairness and good faith, respecting the legitimate interests of our stakeholders, shareholders, employees, customers, commercial and financial partners and of the general public and local communities in which we conduct our activities is fundamental for the smooth operation, reliability and reputation of the Group, but at the same time represents a key asset for Fincantieri's ongoing success. In no way does the conviction of acting in the interest or advantage of the Company justify adopting conduct that goes against these principles and all conduct contrary to the words or spirit of the Code will be subject to sanctions as mentioned in the Code.
We are committed to encouraging and promoting knowledge of the Code among employees and with all parties who have
Legislative Decree No. 231/2001 (Organizational Model), the latest version of which was approved by the Board of Directors on 14 February 2019. It consists of a general section, which illustrates the principles, departments and basic components of the Organizational Model, and special parts, which identify the activities at risk of crime,
the principles of conduct, and the control procedures for the specific types of crimes considered relevant.
The Organizational Model is available on the website www. fincantieri.com/globalassets/sostenibilita2/business-ethics/fincantieri_modello-231-parte-generale_feb2019_en_pubbl.pdf
Anti-corruption Policy
Given the extensive geographic context in which we operate, the Company has adopted a number of internal rules aimed at identifying
Safety Policy | Quality Policy |
business relations with Fincantieri and we monitor observation of the Code, providing suitable tools for information, prevention and control, and ensuring the transparency of existing operations and conduct.
The Board of Directors and the Company management is responsible for verifying the Code of Conduct's implementation and
and applying a global anti-corruption policy that defines the expectations for conducting business operations in strict compliance with the best international standards on anti- corruption legislation. The Group's commitment to combating corruption - established in primis by the Code of Conduct - is reflected in a series of corporate documents that are its existing
46 | 47 |
FINCANTIERI GROUP
FINCANTIERI GROUP
means to combat corruption. The first of these documents is the Anti-corruption Policy adopted by the Company in 2014 and updated in January 2019, which introduces a regulatory system to protect sensitive areas.
The Anti-corruption Policy is available on the website www.fincantieri.com/globalassets/sostenibilita2/business- ethics/20190125_anticorruzione_eng.pdf
As part of the process of constant evolution and continuous improvement of the Company's anti-corruption system, we launched a project in 2019 with the aim of obtaining certification by the end of 2020 for its anti-corruption management systems, one objective included in the Sustainability Plan. The project, which avails itself of advisory support, envisages the Internal Auditing Function coordinating a working group made up of the company functions/departments most directly involved in sensitive processes, in order to prepare and/or integrate the Company's procedural and organizational controls to adapt them to the standards required by certification. At an organizational level, in order to oversee the Company's anti- corruption system, in accordance with the
anti-corruption procedures has been met within the range of the annual planned audits, approved by the Board of Directors. The Supervisory Body plays a special role. Its activities call for the periodic collection of confidential information in order to identify potentially risky conduct with reference to corruption both with respect to Italian and foreign Public Administrations, and to private parties. The Organizational, Management and Control Model according to Legislative Decree No. 231/2001 and the corporate regulatory framework are subject to a continuous updating process to comply with organizational and legal changes and to adequately respond to the possible risk of committing crimes.
Among the tools for preventing the risk of corruption, the Company has - since 2009 - adopted a system for reporting infringements to the Supervisory Body (whistleblowing), also defined in the Organizational Model, which enables employees and third parties to report issues involving non-compliance with the provisions of the Code of Conduct, the Organizational Model, or of the
Communication and training on the anti- corruption procedures and policies
With regard to Legislative Decree No. 231/01, and in particular relating to anti- corruption and safety at work, an e-learning training project has been in place since 2016, supported by the Supervisory Body and the Internal Auditing function.
The training system for this course is divided into differentiated paths in order to allow targeted distribution of the information based on the roles of the people involved. The "general" path has been delivered
to all employees of the Parent Company (equipped with company PC and email), while agents and specific corporate departments were also given specific modules.
During 2019, the program continued with the provision of an on-line course for agents focusing on anti-corruption and company risks, and new editions of the general course and on safety at work and the environment were started for those
who had not participated in the previous editions. For employees of Italian subsidiaries, specific anti-corruption training meetings are held, organized by their supervisory bodies with a view to extending this training to the e-learning mode.
The Board of Directors receives an annual report from the Supervisory Body on the activities performed, including training.
Regarding foreign subsidiaries, the VARD group and Fincantieri Marine Systems North America Inc. (FMSNA) have held training on the Code of Conduct and business ethics, while in 2019 Fincantieri Marine Group (FMG) did not carry out any training on the issues in question since the contents of the course have been revised and it will be resumed in 2020. The courses were held in the local language of the countries where the companies involved in training are based (Italy, USA, Norway, Croatia, Poland, Romania and Vietnam).
The table below shows the data on the overall number of employees who received training in 2018 and 2019.
ISO 37001 standard, it is the responsibility of the Board of Directors to identify and appoint the "anti-corruption compliance function", giving it the appropriate operational responsibilities and authority to carry out its duties. To this end, the Board of Directors established the Anti-Corruption function at the meeting held on 28 January 2020.
With reference to the Parent Company, the Internal Auditing function examines and independently evaluates the internal controls to verify if what is required by the
corporate procedures or, otherwise, the law. Since January 2019, an update of the whistleblowing computer system has been made operational. This system uses an independent platform to send reports and is an evolution in terms its suitability in order to ensure the confidentiality of the sources and of the information communicated (as required by Law No. 179 of 30 November 2017).
For more information on the whistleblowing system and on all the anti-corruption procedural tools, see the website www.fincantieri.com/en/governance/business-ethics
SENIOR MANAGERS | MIDDLE MANAGERS | WHITE COLLAR | BLUE COLLAR | TOTAL | ||||||
EMPLOYEES | EMPLOYEES | |||||||||
2018 | 2019 | 2018 | 2019 | 2018 | 2019 | 2018 | 2019 | 2018 | 2019 | |
FINCANTIERI | 99 | 7 | 69 | 55 | 500 | 1,140 | 0 | 2 | 668 | 1,204 |
VARD | 9 | 3 | 38 | 6 | 75 | 53 | 47 | 78 | 169 | 140 |
FMG | 31 | 0 | 129 | 0 | 387 | 0 | 23 | 0 | 570 | 0 |
FMSNA | 1 | 3 | 8 | 11 | 16 | 24 | 31 | 27 | 56 | 65 |
TOTAL | 140 | 13 | 244 | 72 | 978 | 1,217 | 101 | 107 | 1,463 | 1,409 |
% of total employees | 37% | 3% | 21% | 6% | 14% | 16% | 1% | 1% | 8% | 7% |
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FINCANTIERI GROUP
FINCANTIERI GROUP
WE RESPECT HUMAN RIGHTS
As regards monitoring of corruption cases, it should be noted that no confirmed cases of corruption involved companies in the Fincantieri Group were found in 2018 and 2019.
National Framework Tender Protocol
Having identified in the tender system a key element for our ability to develop and raise our competitive standing in our reference markets, we have always paid constant attention, also in this context, to ensuring maximum transparency.
It is in fact in the interest of the Company to ensure respect for legality and to defend the market from interference by organized crime, as well as from undue interference and pressures from common criminals, preventing any possible infiltration attempt by organized crime during the process of awarding tenders, in capital expenditure and in production activities.
To this end, since 1999, Fincantieri has been working on improved cooperation with the relevant local authorities and, over time, has arrived at signing Legality and Transparency Protocols, which led to the signing of
a single National Framework Tender Protocol with the Ministry of the Interior
on 27 February 2017, aimed at preventing infiltration attempts by organized crime. The agreement represents a fundamental milestone that unifies the procedures for control against organized crime on a national level in companies considered at "high risk" and which enabled, since its activation, more than 2,200 reports to be sent to the relevant local Prefectures on firms that operate on contracts and subcontracts in all locations of the Fincantieri Group.
The agreement, in addition to having set up a permanent round table in the Minister's Office, guarantees an invaluable exchange of information for those cases considered most at high risk and, should any issues arise, enables Fincantieri to adopt the most appropriate protective measures while also reconciling the necessary confidentiality requirements of the parties involved. Under the agreement, Fincantieri also asks the supply chain concerned to ensure the highest levels of transparency and fairness and fulfil their obligations to combat against and report any instances that could entail conspiracy to commit a crime
- including mafia-type conspiracy - or, by way of example, corruption, fraud, money laundering and extortion.
We are committed to ensuring and promoting respect for human rights, a priority for the Group, in all business areas and among all stakeholders, whether Group employees or suppliers. We conduct our activities in accordance with fundamental human rights standards.
As proof of this commitment, our policies and practices are aligned with:
- International Bill of Human Rights, including the United Nations (UN) Universal Declaration on Human Rights;
- Fundamental Conventions of the International Labor Organization (ILO);
- Guidelines of the Organization for Economic Co-Operation and Development (OECD) for Multinational Enterprises;
- Ten principles of the United Nations Global Compact.
The Group has adopted the Policy On Human Rights - Commitment for the respect of human rights and diversity and the Suppliers' Code of Ethics, two relevant documents to guide the company's activities, following an approach to business that is not limited to compliance with the regulations in force in the countries where we operate, but proactively oriented towards the protection of human rights.
The documents approved by the Board of Directors confirm our commitment to protecting human rights as stated in the Code of Conduct, the Charter of Sustainability Commitments and the Sustainability Plan.
50 | 51 |
FINCANTIERI GROUP
FINCANTIERI GROUP
Policy on human rights
PLAN
OBJECTIVE
COMPLETED
IN 2019
In order to define principles and rules that guide the strategies, activities and initiatives of the entire Group towards respect for human
rights and the promotion of diversity and inclusion, Fincantieri has drawn up the Policy on Human Rights - Commitment for the respect of human rights and diversity
The principles on which the public commitment to human rights adopted within the lines of the Policy is based and the consequent commitment to share a collective awareness of their importance within the Company can be represented as follows:
The Policy was developed with the involvement of Group companies, under the coordination of the Human Resources departments and in close collaboration with the main corporate functions. This comprehensive involvement has made it possible to carry out an exhaustive mapping of the initiatives and best practices in place in the various companies within the countries in which the Group operates. In fact, a study of the reference context was carried out in
parallel to identify the regulatory scenario, standards, the main trends and any risks present. Using the results of the assessment and benchmark carried out with a number of significant players, the areas of intervention have been defined and the Policy has been drawn up, which will be followed by a work plan for effective implementation and monitoring capable of overseeing the logic of continuous improvement.
METHODOLOGICAL APPROACH
REJECTION
OF FORCED LABOR
AND CHILD LABOR
RESPECT OF THE | FREEDOM OF |
ASSOCIATION | |
RIGHTS OF LOCAL | |
AND COLLECTIVE | |
COMMUINITIES | |
BARGAINING | |
PRINCIPLES |
PROMOTION OF FAIR | |
ATTENTION TO HEALTH | AND EQUITABLE |
AND SAFETY AT WORK | CONDITIONS OF |
EMPLOYMENT AND | |
WORK |
Policy approval | ||
ASSESSMENT | ||
EXECUTE | Action Plan | |
Analysis of internal context | ||
DESIGN |
Analysis of external context
and benchmark Policy development and drafting
Policy on Human Rights - Commitment for the respect of human rights and diversity www.fincantieri.com/globalassets/sostenibilita2/ responsabilita-risorse-umane/diverita-e-pari-opportunita/fincantieri_policy_on_human_rights2.pdf
The document contains a focus on Diversity | strategic factors for company competitive |
and Inclusion, elements we consider | advantage and people development. |
Even in countries like Vietnam, where human rights might be more at risk, the Company constantly monitors these issues. The Vietnamese shipyard has been certified in compliance with SA 8000. The model guarantees a virtuous process aimed at
ensuring their continuous respect and provides specific training to all new recruits. In 2019, 1,861 hours of human rights training were provided in the Vietnamese shipyard with the participation of 267 people.
52 | 53 |
FINCANTIERI GROUP
FINCANTIERI GROUP
WE PROTECT DATA AND INFORMATION
Suppliers' Code of Ethics
PLAN
OBJECTIVE
COMPLETED
IN 2019
In order to respect the Group's commitment to promoting a responsible and sustainable supply chain, with respect for human rights, we have adopted the Suppliers' Code of Ethics. The document defines the values and principles
of conduct that suppliers must refer to and
adopt in order to pursue a development that integrates competitiveness, environmental sustainability and social responsibility, capable of establishing a long-term partnership based on integrity, honesty and mutual transparency.
The Suppliers' Code of Ethichs is available on the website www. fincantieri.com/globalassets/sostenibilita2/responsabilita- risorse-umane/diverita-e-pari-opportunita/fincantieri_policy_ on_human_rights2.pdf
To guarantee respect for human rights in the supply chain, a specific objective has been included in the Sustainability Plan that provides for annual second-party audits to monitor and evaluate strategic suppliers in terms of respect for human rights, safeguarding workers' health and safety, and protecting the environment.
For more details on the Suppliers' Code of Ethics and audits, please refer to the chapter "For a sustainable supply chain".
The Company's focus on cyber security has gradually intensified in response to the ever-increasing complexity and frequency of cyber attacks carried out against companies with national and international strategic importance. The sophistication of cyber threats - made possible by the operation of consolidated international groups, some of which supported by the governments of the countries to which they belong - requires the constant adjustment of the company's defenses and processes for protecting IT assets, as an additional element to protect the Company's industrial know-how and market competitiveness.
For this reason, in 2019 we further strengthened the Cyber Security function, activating a pervasive multi-year program focused on managing and mitigating cyber risks, which develops far-reaching project initiatives on the company's technological infrastructure, such as:
- creation of a program to protect the industrial networks supporting ship production on 4 pilot shipyards (Monfalcone, Marghera, Ancona and Riva Trigoso) to allow the monitoring, protection and management of field equipment;
- development of a model to manage cyber security aspects related to product development processes;
- definition of the Group business model with regard to the Information Security Policy Architecture;
- implementation of tools based on Artificial Intelligence to identify a standard behavioural model capable of highlighting any anomalies in user actions;
- central monitoring of core corporate services;
- lifecycle management of cyber security incidents;
- conducting periodic IT security assessments aimed at identifying and remedying any gaps;
- providing awareness campaigns to employees, aimed at improving awareness of cyber risks and shedding light on the most widespread attack techniques (e.g. social engineering) and the organizational and behavioural methods for neutralizing them;
- managing cyber risks within a more general framework of operational risks that may negatively impact on the Company's business and image.
Fincantieri - in its capacity as a strategic company for the national system - continues to collaborate with the State Police and other important national institutions through information sharing activities on significant cyber events recorded on its IT infrastructure.
We are aware of our social responsibilities and in light of the full transposition of the principles laid down to protect personal data, we have launched a process to comply with Regulation (EU) 2016/679 of the European Parliament and of the Council of 27 April 2016 on the protection of natural persons with regard to the processing of personal data and on the free movement of such data, and repealing Directive 95/46/ EC (the GDPR), became fully applicable on 25 May 2018. At the end of this process, the Company adopted a privacy management system, whose founding principles are contained in the Policy on General Principles
54 | 55 |
FINCANTIERI GROUP
FINCANTIERI GROUP
of the Privacy Management System (Privacy Policy) which establishes, among other things, the main processes needed to ensure the protections envisaged by the legislation. With this policy Fincantieri undertakes to establish and maintain over time a control model aimed at protecting the personal data collected and processed as part of the operational processes of its business, promoting the development of a pervasive privacy culture at Group level. With this in mind, in addition to the dissemination of privacy statements to the data subjects and instructions to personnel authorized
to process personal data, Fincantieri has carried out a pervasive training campaign that reached the employees of the Parent Company and was extended to the Italian subsidiaries.
The Privacy Management System was laid out in detail in a specific Privacy Management System Manual and by operational procedures that identify certain processes that are especially critical such as management of data breaches and management of requests from data subjects asserting their rights.
As regards the security measures to be implemented to guarantee and protect data, the ISO/IEC 27001:2013 and ISO 9001:2015 certifications, which represent deeper integration with the information technology required by the personal data protection obligations, were confirmed again in 2019, confirming compliance with the level of reliability required by international standards.
With regard to foreign subsidiaries, the VARD group, complying with the provisions of the GDPR, has adopted the following line of action: implementing an overall mapping of processes that involve personal data, implementing the privacy policy
for employees, limiting access to data in compliance with regulatory requirements, carrying out the related training, sharing the mapping results with the shipyards and offices in the various territories so that it can be implemented according to local characteristics.
Fincantieri Marine Group, complying in particular with the provisions of the Health Insurance Portability and Accountability Act (HIPAA), has prepared a detailed document on the protection of employees' medical data, providing training to those who have access to such information.
LAWFULNESS,
TRANSPARENCY
AND FAIRNESS OF
PERSONAL DATA
PROCESSING
INTEGRITY AND | DATA MINIMIZATION |
CONFIDENTIALITY | |
PRINCIPLES
OF FINCANTIERI'S
PRIVACY POLICY
STORAGE
LIMITATIONDATA ACCURACY OF PERSONAL
DATA
PURPOSE
LIMITATION
OF PERSONAL DATA
PROCESSING
56 | 57 |
FINCANTIERI FOR SOCIETY
- FOR THE ECONOMY AND THE MARKET
- FOR INNOVATION
- FOR A SUSTAINABLE SUPPLY CHAIN
- FOR OUR CUSTOMERS
- FOR OUR PEOPLE
- FOR THE COMMUNITY
58 | 59 |
FINCANTIERI GROUP | FINCANTIERI GROUP |
FOR THE ECONOMY AND THE MARKET
We believe in an economy that is a system of relations based on trust and transparency, an integrated dynamic network of cross-cutting communities, built over time to create and exchange value
of collaboration between large Italian companies that are mutually supportive of each other, placing a unique industrial
heritage at the disposal of the city and the country.
In recent years, new technologies and changes in people's behaviour have led to structural changes in many industrial sectors, resulting in the emergence of new markets, growth and employment opportunities,
but also to the need to adapt the business model in order to seize all the opportunities.
In this context, our business model - diversified by end markets, geographical areas and customer portfolio - is able to face new challenges by seizing all opportunities without ignoring their social and environmental implications. Our goal always remains that of combining business with reducing environmental impact, meeting the needs of local communities and improving the safety of our people and our suppliers.
We are committed to developing and promoting innovative solutions that contribute to the achievement of the UN 2030 Sustainable Development Goals (SDGs), through a structured organization, the activation of virtuous ecosystems, and by leveraging on access to new technologies.
With this in mind, we are also actively involved in the construction of the new Genoa Bridge, a project that Fincantieri Infrastructure manages together with
Salini Impregilo, a leading partner and company in the sector with which it set up the consortium PERGENOVA. The latter's mission is to give back to the city of Genoa the viaduct over the Polcevera river, which collapsed following the tragedy on 14 August 2018. Fincantieri Infrastructure contributes in this case by pooling the entire know-how of the Fincantieri Group: the Valeggio sul Mincio shipyard produces the metal sheets, beams and semi-finished products which are then assembled at the Castellammare di Stabia and Sestri Ponente shipyards.
The latter shipyard will also support all operations in logistical terms given its proximity to the bridge site.
In addition, the technological skills of the automation, safety and monitoring systems of the Group's various subsidiaries will also be integrated.
The reconstruction of the bridge is destined to become the symbol of the rebirth of a great city like Genoa, but also the symbol of a new phase of the country's development. It will show that also in Italy, thanks to
a virtuous collaboration between the public and private spheres, it is possible to build infrastructures with certain times and costs, from the stage of identifying the needs to execution. The hope is that the Genoa project can represent a model
60 | 61 |
FINCANTIERI GROUP
ECONOMIC VALUE FOR STAKEHOLDERS
FINCANTIERI GROUP
The creation of economic value is essential to ensure that the Group is safeguarded over time and, therefore, its sustainability. The distribution of economic value, determined in accordance with the "direct economic value generated and distributed" (201-1) of the GRI Sustainability Reporting Standards (2016), represents the economic impact
of our business for the benefit of the main stakeholder categories.
In 2019, we distributed a total economic value of €5.8 billion to suppliers, collaborators, lenders, Public Administration and the community. This is a significant value, the impact of which remains limited mainly to the territory, particularly with regard to personnel and suppliers.
Since 2013, following the acquisition of the VARD group, our worldwide presence has increased to around 20 countries, mainly in Italy, Norway and the United States, which together produce 98% of revenues. In 2019, 33% of revenues were generated by cruise ships equipped with green technologies such as scrubbers that purify exhaust fumes from hazardous chemicals and pollutants, selective catalytic reduction systems (SCR) for ships or liquefied natural gas (LNG) propulsion.
order backlog offers some guarantee of visibility that supports the development of leading-edge supply chains and technology districts, creating a driving force for the subcontractor network and fostering Italian export and innovation.
Our leadership is also based on the ability to create jobs all over the world, offering people the opportunity to establish a stable and long-term relationship with us, and to share with them the same idea of growth, improvement and personal fulfilment. In
DIRECT ECONOMIC VALUE GENERATED AND DISTRIBUTED | ||||
2018 | 2019 | VAR | ||
DESCRIPTION | euro/million | euro/million | 2019/2018 | |
ECONOMIC VALUE GENERATED | 5,513 | 5,897 | 7.0% | |
DIRECTLY | ||||
Revenue | Sales revenue | 5,474 | 5,849 | 6.9% |
Finance income | Interest income and return on equity | 40 | 50 | 24.8% |
investments | ||||
Capital gains/losses on | Business profits | (0) | (2) | 224.5% |
business profits | ||||
DISTRIBUTED ECONOMIC VALUE | 5,266 | 5,796 | 10.1% | |
Operating costs | Payments to suppliers | 4,089 | 4,505 | 10.2% |
Cost of personnel | Payments to employees | 952 | 1,001 | 5.2% |
Dividends | Payments to suppliers of capital (shareholders) | 17 | 17 | 0.0% |
Interest paid and financial | Payments to suppliers of capital (banking | 141 | 187 | 33.1% |
costs | institutions) | |||
Duties and taxes | Payment of duties, taxes and other financial | 64 | 84 | 29.8% |
and legal fees | ||||
Donations to associations | Community investments | 3 | 2* | -33.3% |
ECONOMIC VALUE RETAINED | alculated as the difference between the | 247 | 101** | -59.0% |
economic value generated and the economic | ||||
value distributed |
*In 2019, a new method of reporting than the one used in 2018 was developed in order to bring it closer to the London Benchmarking Group (LBG) model. **The figure does not include "Net profit/(loss) from discontinued operations".
The data refer to the entire Fincantieri Group.
REVENUES BY OPERATING COUNTRIES | |||
2018 | 2019 | VAR | |
euro/million | euro/million | 2019/2018 | |
Italy | 3,989 | 4,448 | 11.5% |
Norway | 817 | 731 | -10.6% |
United States | 467 | 581 | 24.4% |
Other countries | 201 | 89 | -55.7% |
TOTAL | 5,474 | 5,849 | 6.9% |
The data refer to the entire Fincantieri Group.
Fincantieri's worldwide order book at December 2019 contains 109 ships and amounts to €32.7 billion (including those under a Memorandum of Understanding) with deliveries stretching to 2027. Demand drivers continue to be positive in 2019; in the cruise business, in particular, there is a demand to replace ships that entered fleets in the early 1990s, and now made obsolete by the entry into force of new safety and environmental regulations and by the increased profitability of new generation ships with lower management costs and a diverse range of entertainment on board. There was also considerable activity in the market for naval vessels, with the finalization of several contracts, mainly assigned to domestic shipbuilders. The
Italy, in particular, our workforce grew by 672 employees, confirming Fincantieri's primary role in the employment context. We recorded an increase of 2.8% at Group level compared to 2018.
In order to support our production, we have created a production network that requires our shipyards work in synergy and collaboration with each other so that one single order brings value to different regions or nations and not only to the production site where the ship is delivered. For example, with regard to the vessels produced by the VARD group in the five shipyards in Norway, it is worth noting that these are also partly built with the operational contribution of the two shipyards in Romania, the shipyard in Brazil and the one in Vietnam. With
this integration it possible, on the one hand, to ensure the proper combination of functionality, capacity, cost control and proximity to the market in order to satisfy the desires of a wide and diversified international portfolio of customers at the highest level and, on the other hand, to generate internationally distributed value by
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promoting the transfer of technology and knowledge aimed at fostering independent local development even in non-European countries with different levels of economic development. Moreover, this preventive model also allows us to address possible risks related to climate change.
We are present in different geographical areas of Italy and the world, some of them in precarious or developing socioeconomic contexts, characterized by a limited presence of large companies, a large number of small enterprises, where employment rates and the labour market are not very dynamic and not always evolved. This involves a considerable investment in terms of both organizational and economic resources in order to address and make
up for the shortcomings of infrastructure networks and the lack of a widespread business culture. Through our shipyards we are able to guarantee economic stability to
entire families and territories and contribute significantly to employment growth and the positive evolution of the socio-economic context of the areas in which we operate.
In cases of business reorganization (mergers, acquisitions, etc.), we try to safeguard our people by, if necessary, assigning new tasks with targeted training or retraining, based on each person's ability and experience.
We also pay close attention to the professional capital that a territory is able to express and try to enhance it as much as possible. In this context, Fincantieri purchased a majority share of the capital of Insis, a company based in Follo (La Spezia), operating in the IT and electronic sectors, that employs a total of around
100 people, 70% of whom are engineers, system engineers and specialist technicians, namely a pool of expertise that is difficult to find on the market or one that can only be developed internally over a particularly long period of time.
Thanks to the adoption of a strategic approach to the market, over the years we have evaluated and finalized several M&A transactions and acquired entire companies in financial difficulties but with solid industrial backgrounds, also giving priority to direct hiring or hiring through our chain of subsidiaries belonging to the Group. These actions have enabled us to safeguard know-how, strengthen our skills and support the economic system of the territories in which we operate. By way of example, Fincantieri Infrastructure took over the company Cordioli & C. s.r.l. of Valeggio sul Mincio from the extraordinary administration procedure managed by the Ministry of Economic Development, in order to increase its expertise in the construction and major works sector and help safeguard dozens of jobs. As part of the same operation, Fincantieri Infrastructure started to refurbish the industrial buildings of the former Cordioli plant, equipping them with new technologically advanced equipment for cutting, welding and processing
steel, even for large thicknesses, and therefore rebuilding a solid production and employment base.
In addition, it is worth mentioning that since early 2019, Fincantieri has been working with the Friuli Venezia Giulia Region, and more specifically with the Central Directorate for Work, Training, Education and Family, in order to encourage the redeployment of unemployed staff who have left companies in crisis in the area. The activity, in particular, involved the over 150 workers of the company Eaton s.r.l. who participated in
a selection process with Fincantieri, the economic satellite businesses and the
Regional Employment Centre which, in many cases, ended with them being hired by Fincantieri or by satellite businesses. Some resources were included in pre-hiring training courses aimed at acquiring the skills of the main shipbuilding trades (e.g. welders, carpenters, pipers) which the Region is promoting in collaboration with Fincantieri.
In order to relaunch the shipbuilding hub in the port of Palermo, a protocol of intent was signed between the Authority of the Western Sicilian maritime port system and Fincantieri, with the shared objective of establishing the Sicilian site as one of the most important centres in the Mediterranean. The Palermo site also completed the process for RINA to issue OHSAS 18001 and ISO 14001 certificates of conformity, the highest international standards of health and safety at work and environmental protection.
With this result, the company arrived at full coverage of all the Group's certified Italian production units.
We have also signed a preliminary cooperation agreement with Cassa Depositi e Prestiti (CDP) and Snam aimed at identifying, defining and implementing strategic medium-term projects in some key segments for innovation and the development of the Italian ports and the development of sustainable technologies for sea transport, in line with the Proposals of the National Integrated Plan for Energy and the Climate (PNIEC). Fincantieri and Snam will share their technical expertise by setting up dedicated working groups and CDP will support, from an economic and financial perspective and in line with its institutional
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FINCANTIERI GROUP
mission, projects that have positive effects of public interest.
Our economic contribution in the various countries where we are present is also expressed at tax level and is divided into various types of taxes, which can be grouped into the following categories:
- income tax, corporation tax;
- property taxes, charges on ownership, sale or lease of property;
- taxes on labour, including taxes collected and paid to the tax authorities on behalf of employees;
- indirect taxes levied on the production and consumption of goods and services, such as VAT, customs duties, etc.
In the spirit of the Code of Conduct, we are committed to acting with honesty and integrity in all tax matters and aim to pursue a transparent and sustainable long-term tax strategy. We are committed to complying with legislation in all jurisdictions in which we operate, working closely with tax authorities, tax advisors and auditors to ensure payment of the taxes due.
Our massive presence in the territories where we operate certainly generates benefits, but it can also cause inconvenience to the local population. For this reason we are committed to respecting the rights
of communities and contributing to their economic and social progress, interacting with a variety of stakeholders on a daily basis. The search for shared value for the Company and its stakeholders represents an opportunity to combine competitiveness
with the creation of social value in the long term. Such a vast geographical perimeter necessarily implies confronting different enterprises and an in-depth knowledge of the territory and the needs of the various stakeholders in order to identify targeted solutions.
For this reason we try to reduce our impacts through responsible management, helping the institutions in the territories where we are present.
Numerous initiatives have been implemented in the Monfalcone area, where one of
our most significant shipyards is located. Fincantieri and the Municipality of Monfalcone, sharing the need to increase local school facilities, also caused by the impact of the population active in the shipyard, have conducted a feasibility study for the renovation of a building, owned by the Municipality, to be used as a nursery school. The project envisages the creation of a number of classrooms equipped with all the necessary services, potentially able to accommodate about one hundred children. After the Agreement is signed, scheduled for spring 2020, Fincantieri will return the property to the Municipality of Monfalcone, renovated and adapted for the new use, in time for the start of the 2020/21 school year. Fincantieri has also undertaken to bear the operating costs with a contribution for the first three years of activity.
We are also strongly committed to reducing the environmental impacts, generated by our activities, on the community. As part of the noise reduction plan adopted by Fincantieri
and in line with the provisions contained in the Integrated Environmental Authorization, the Company has undertaken, in addition to an extensive investment programme at the Monfalcone site, to replace the windows and doors in some of the houses most exposed to the noise generated by the shipyard's production processes. This work will take place during 2020 under the coordination of the Municipality of Monfalcone.
In addition, the company is transforming the area of the former railway into a cycle path and has arranged free buses to reach the shipyard from the external parking areas. Also at the Monfalcone site, a project has been developed to provide healthcare directly on site to non-resident staff in order to reduce the impact on the hospital's emergency services operating units, improving the quality of the service offered to each worker concerned and at the same time ensuring prevention and diagnostics.
Fincantieri signed a joint working agreement for charitable purposes with the Banco Alimentare (Food Bank) of the Liguria and Marche Regions and with the companies that provide catering services at the canteens in the Muggiano and Ancona shipyards. Under these initiatives, which replicate similar experiences already underway at the Sestri Ponente and Riva Trigoso shipyards, the Company donates the food not eaten at the shipyard canteens in order to redistribute it to charities that support and help the poor and, more generally, people in need. Further agreements with the Food Bank or other associations will be concluded during 2020, where locally compatible.
We pay great attention to the search and selection of long-lasting partnerships with those who contribute to the creation of our products and services and represent us in the world. Working with our suppliers has an additional positive impact on the communities in which we operate by creating jobs and increasing our partners' business volumes.
The initiatives implemented by the Group for the individual stakeholder groups are described in the various chapters of this Report.
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FINCANTIERI GROUP
OUR ECONOMIC SATELLITE BUSINESSES
FINCANTIERI GROUP
As already mentioned, we believe in an economy that is a system of relations, an integrated dynamic network, built over time to create and exchange value. Thanks to a competitive production model that is strongly linked to the Italian production network, Fincantieri generates additional impact on the national economy.
PRODUCTION | |||
PRODUCTION | SUPPLY | IMPACT OF | |
MODEL | FINCANTIERI | ||
CHAIN | |||
(Make or buy) | + | = ON THE ITALIAN | |
ECONOMY |
According to a Censis study, the Fifth Report on the Economy of the Sea 2015, every euro invested in shipyards produces a value 4.5 times greater, mostly benefitting the area where it is located, through the involvement
of a wide and diverse network of companies, many of which are highly specialized small or medium-sized enterprises.
Each cruise ship built by Fincantieri develops on average € 2.7 to € 3.6 billion of business volume for the Italian System:
- directly generated by Fincantieri: about € 600 to 800 million;
- additional through stimulation of satellite businesses: about € 2.1 to 2.8 billion.
The impact on employment can be calculated by initially considering direct employment, that is direct jobs at Fincantieri in Italy, to which first-tier indirect employment is added, that is jobs at Fincantieri contractors, as well as second-tier employment, represented by jobs at sub-contractors. In turn, it is necessary to add to this final employment figure the satellite business jobs due to consumption by the families of all employees.
31,40086,100
Employed | Employed | |
by Fincantieri | by Fincantieri | |
companies | subcontractors |
54,700
34,530 | ||||||||
Employed in economic | ||||||||
sectors correlated with | ||||||||
the consumption of | ||||||||
those directly employed | ||||||||
9,330 | and indirectly | |||||||
employed (first-tier) by | ||||||||
Fincantieri | ||||||||
Direct employees | Direct + Indirect | Total Direct + Indirect | Employment induced | Total Employment | ||||
in Italy | 1st tier | 1st and 2nd tier | through consumption | |||||
~ 3.7x | ~ 5.5x | ~ 3.4x | ~ 8.9x |
MULTIPLIER
From the graph it can be seen that:
- the approximately 9,300 direct resources at Fincantieri activate in Italy more than 54,000 employment units in industry (considering contracts and subcontracts) in the manufacturing industry;
- adding to this the induced effect of family consumption, employment exceeds 86,000 units.
Considering both the effects upstream and downstream of its production organization, Fincantieri therefore has a significant employment multiplier effect of about 8.9x, confirming the broad impact the Company has on the country's economic system.
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FINCANTIERI GROUP | FINCANTIERI GROUP |
FOR INNOVATION
Innovation is growth and we never cease to innovate
environmental challenges of our time. We have set ourselves the objective of
implementing our strategic vision by focusing our Research and Innovation process on five fundamental pillars:
Green Ship
Eco-sustainability
Our main objective has always been to keep our world leadership in all the high value- added segments of the shipbuilding industry. Our competitive advantage lies in our capacity to provide highly technological and customized solutions and is evident whenever the need to apply solid know-how in system integration emerges.
WE ARE INNOVATORS
The main objective we have set ourselves in order to direct our work strategically in the near future is the definition, shared with our European partners, of a vision of innovation trajectories in the shipbuilding industry.
This is confirmed by our commitment in the
Smart Offshore Infrastructure
Introduction of innovative
solutions supporting
the Blue Economy
and energy efficiency of ships
Smart Ship The digitization of ships
We have repeatedly confirmed our position as one of the most competitive global players, thanks to our flexibility and ability to adapt to significant and cyclical changes in market needs. These fluctuations require a continuous process of change that generates product innovations, applicable to all types of ships, and process innovations, which are necessary in order to apply new technologies and
recent definition of the Strategic Research Agenda (SRA) of WATERBORNE, the European Research and Innovation Platform for Waterborne Industries. The work was carried out in collaboration with the main associations in the industry to outline the prospects for collective development in the coming years. In particular, WATERBORNE's SRA proposes to radically transform waterborne transport by giving new impetus
5 PILLARS OF RESEARCH
AND INNOVATION
Smart Yard | |
Development of facilities and | Autonomous Ship |
processes more efficient, safe and | The automation of ships |
sustainable |
recover productivity.
We aim to be proactive towards shipowners
to European leadership in high value- added ships. This will be feasible thanks to the definition of new business models
In order to be strategically valid for the Group, each research project pursues at least one of these fundamental directions.
and fields of interest. We are constantly engaged in industrial research, experimental development and process innovation
by always offering innovative solutions that anticipate future technological evolutions. The constant updating of products and processes is one of the fundamental values of Fincantieri that have led to it being one of the most competitive players in its business globally. In this sense, the capacity to seize on the promising synergies in terms of innovation at international level characterizes the Group's actions and makes it gradually
aimed at supporting sustainable growth in the shipping industry and the integration of goods and passenger transport into a seamless solution for shipping, ports and related logistics.
In this context, innovation is a key element for the European shipbuilding industry to continue to maintain a global leadership position, demonstrating that it is fully able
€ 134 mln
RESEARCH AND DEVELOPMENT COSTS
in order to improve existing products, processes and services and to expand our knowledge base to support our entry into promising new market sectors worldwide.
Long-term activities are defined, in agreement with the business units and subsidiaries, starting from an analysis of the economic and technological megatrends that will be significant for the maritime
more integrated with and sensitive to market dynamics.
to handle the greatest technological and
Our Research and Innovation activities extend to various areas with different aims
segment over the next decade.
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FINCANTIERI GROUP
An analysis of the policy documents produced by international organizations, research centres and, more generally, by our stakeholders, allows us to define the areas which have not yet been explored and where the Group's resources can be invested.
As regards the medium and short term, our commitment is aimed at satisfying both the requests we expect to receive in order to meet the needs of the end users of the product and those actually received from shipowners. In the first case, we are committed to off-the-shelf innovation, i.e. those activities that are not directly applicable to orders, but are strategic in
anticipating the needs of the end customers for our product. The directions to be taken suggested by recent market surveys show the importance of concentrating our efforts on issues such as energy efficiency and reduction of operating costs, maximization of payload and at the same time perceived quality, and improvement of safety. In the shorter term, however, the focus is on developing and innovating technologies and applying them to each individual order. Timely fulfilment of the shipowner's requests often requires the development of technological solutions or the study of innovative materials and systems to be applied during the ship design phase.
Fincantieri draws up a Research and Innovation Plan (R&I Plan) every year. The Plan is the tool that the Group uses to effectively implement its strategy and it is the cornerstone of the other processes in Research and Innovation. The annual redefinition of the projects is essential in order to maintain consistency between the activities carried out during the previous year, new corporate objectives and the market needs envisaged in the near future.
The plan takes its momentum from the processes analysing technological and economic megatrends, carried out by our analysts or sector stakeholders, as part
of the process of defining the Group's development strategy. The innovation with suppliers process also contributes to the plan. This process is dedicated to analysing the specific perspective of the partners operating upstream in the value chain - in order to define joint development roadmaps that enable the Group and its ecosystem of suppliers of components and related subsystems to achieve joint objectives.
The plan is also fuelled by the Technology Scouting process which aims to analyse emerging technologies in detail, including in sectors far removed from the world of shipping, and assess their potential impact on our products, services and processes.
INNOVATION
OUR CORE PROCESSES ARE DESIGNED TO DRIVE INNOVATION FORWARD
High | Innovation with | Monitoring | |||||
megatrends | |||||||
suppliers | |||||||
BUSINESS | IDENTIFICATION | ||||||
EXPANSION | |||||||
OF NEW BUSINESS | |||||||
THROUGH INCREMENTAL | |||||||
OPPORTUNITIES | |||||||
INNOVATIONS | |||||||
expansion | |||||||
CONTINUITY | TECHNOLOGY | DISCONTINUITY | |||||
Business | AND MAINTENANCE | SCOUTING | AND GROWTH | ||||
INNOVATION | |||||||
INCREMENTAL | |||||||
ROOTED IN | |||||||
INNOVATION OF CURRENT | |||||||
CURRENT | |||||||
PRODUCTS | |||||||
PRODUCTS | New product | ||||||
R&I plan | concepts | ||||||
Low | |||||||
Degree of technological innovation | |||||||
Low | High | ||||||
INNOVATION DRIVERS AND NEEDS
STRATEGIC RESEARCH AGENDA
TECHNOLOGY SCOUTING
INNOVATION WITH SUPPLIERS | ||
RESEARCH & INNOVATION PLAN | TECHNOLOGY TRANSFER | INTELLECTUAL PROPERTY |
PROTECTION | ||
RESEARCH PROJECTS FUNDED BY PUBLIC INSTITUTIONS
WORKING GROUPS IN NATIONAL AND INTERNATIONAL TECHNOLOGICAL CLUSTERS AND ASSOCIATIONS
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FINCANTIERI GROUP
FINCANTIERI GROUP
WE COOPERATE IN ORDER TO CREATE VALUE
The Group develops the projects in the Research and Innovation Plan with the aim of ensuring a competitive advantage for the Group and for the companies that collaborated to achieve common results. The value generated by Research and Innovation projects is captured in particular through two fundamental processes: technology transfer and intellectual property management.
The first is a fundamental step to transfer knowledge, even if intangible, into services and applied technologies aimed at a wider audience of users. In particular, this phase takes place after each project is closed and is aimed at ensuring that the results, including intangible knowledge, models and algorithms, are correctly transmitted to the relevant departments of all divisions. Once finalized, all the project documentation and the material produced are uploaded to a special database which can be accessed by the designers after a simple request.
However, while enlarging the user base aids the marketing of the technology, if the intellectual property of the results attained from the research is not properly protected, there is a risk that the competitive advantage obtained will be nullified. It is therefore essential to protect the intellectual property of the results obtained, delivered through not only collaboration with suppliers but also joint work with universities and research centres, assessing, on a case- by-case basis, whether it is appropriate
to use it as an industrial secret or by filing trademarks, patents and models. In this context, we have set ourselves the
objective of ensuring, in any case, that researchers collaborating in the projects have the freedom to publish by designing processes that allow us to quickly assess the advisability of filing patent applications, and agreeing on a case-by-case basis on the degree of abstraction of the publications, so as to ensure effective protection of their industrial secrets.
The Parent Company's patent portfolio currently contains:
38
PATENTS 14
DESIGN
MODELS*
11
REGISTERED
TRADEMARKS
- of details of the hulls and superstructures of cruise ships
In conducting Research and Innovation activities, we use the support of the CETENA research centre. Thanks to its experience
in research and consultancy in the naval and maritime field since 1962, this is the cornerstone of the Group's pre-competitive research. CETENA's main tasks range from fluid dynamics to structural design, including the application of innovative materials, from energy efficiency and control of emissions to safety issues, and from the development of software and simulators to testing activities.
In order to take full advantage of Research and Innovation processes, in addition to making the most of our internal expertise, we are aware of our role as an integrator, wholeheartedly adopting the Open Innovation paradigm, researching and proposing collaborations with partners operating upstream in their own value chain, or with other stakeholders working to innovate tools, products and services in the maritime field.
INNOVATION
20-30%
70-80% OUTFITTING (Suppliers)PLATFORM (Fincantieri)
We often promote long-term relationships through the creation of wide-ranging cooperative development programs. Aware of the significant boost that these can provide, we continuously aim to expand our partnership networks at local and international level, both within the projects we finance independently and by cooperating in the creation of consortia that respond to the innovation challenges raised by public actors, such as the Horizon 2020 programme.
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FINCANTIERI GROUP
In embracing the Open Innovation model, we take into account a wide range of stakeholders:
These take part in various collaborative | |||
projects, giving an important contribution | |||
to basic research topics. They cooperate | The activities aimed at identifying | ||
in the development of innovative ideas to | |||
the technological priorities to be | |||
transfer onto the product. | |||
developed in the short, medium | |||
NETWORK OF | and long term and that have highly | ||
strategic importance and guarantee | |||
UNIVERSITIESAND | |||
value added for future products. | |||
RESEARCH | |||
CENTRES | |||
These are involved in numerous | |||
projects to develop specific | SUPPLIERS | CUSTOMERS | |
components. The innovation with | |||
suppliers process identifies partners | |||
with whom a common technological | These are constantly involved in | ||
development strategy can be built. | |||
the development of new prototypes | |||
as well as in various collaborative | |||
TRADE | CLASSIFICATION | research projects, supporting the | |
ASSOCIATIONS AND | certification and approval processes | ||
SOCIETIES | for new technologies. Cooperation is | ||
INDUSTRY FORUMS | |||
facilitated by entering into specific | |||
agreements. |
A common strategy: from global to local level
In the context of the Group's collaborations, those activated to define our medium- long term vision and to jointly define the documents setting out the sector's priorities, at local, national and supranational level, are particularly important.
In addition to maintaining a large number of bilateral relationships with other companies in our sector, and with universities and research institutes, we are active in various associations and forums, with the aim of both contributing to the definition of sector roadmaps at a general level, and providing
European priorities for Research and Technological Innovation.
The WATERBORNE Technology Platform, which updated its Strategic Research Agenda in 2019, played a key role in proposing the establishment of the co- Programmed European Partnership "Zero-emission waterborne transport" to be launched within the Horizon Europe programme to develop solutions to transform the waterborne transport sector into a zero-emission sector towards the year 2050, in line with the objectives of the European Green Deal.
Fincantieri has contributed to the policy
Represent an attractive opportunity to exchange ideas aimed at consolidating a shared vision on the main Research and Innovation issues.
START-UPS
Constantly monitored, they often guarantee the first steps towards the industrialization of new technologies.
our contribution on individual technical or technological issues, including through the activation of pre-competitive research projects.
papers of the industry associations Sea Europe and Hydrogen Europe. The former is the European association of shipyards and manufacturers of maritime systems, while the latter is the European association
We strongly believe in the possibility of | of collaborations and participations in various |
creating value in a collaborative way and, for | industry round tables both in Italy and in the |
this reason, we have created a dense network | main countries where the Group operates. |
During 2019, we actively participated in the work of European sectoral technology associations. One of the most important strategic partners of the European Commission is represented by the European Technology Platform WATERBORNE, of which we are active members. The platform aims to maintain continuous dialogue between all stakeholders in the maritime, naval, port, logistics and blue growth fields (an expression that brings together various economic activities including, for example, fisheries, aquaculture, maritime tourism, maritime biotechnology, collection of renewable energy from oceans, mining from the ocean floor), through the consolidation of a shared consensus aimed at identifying
representing the industry and research for the development of hydrogen technologies and fuel cells. In particular, Hydrogen Europe, among its objectives, aims to support the launch of the institutionalized European partnership "Clean Hydrogen for Europe" in the Horizon Europe programme and to support the activities of the "Fuel Cells and Hydrogen" Joint Undertaking (FCH JU) of Horizon 2020.
At European level, we also cooperate with:
- EuroYards, the association of leading European manufacturers, where we actively contribute to the activities of the technical committee and the
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FINCANTIERI GROUP
FINCANTIERI GROUP
working group on product and process digitalization;
- the Cooperative Research Ships consortium, which focuses on the study of hydrodynamic, structural and general issues related to large ships interpreted both from an operational and design point of view;
- European Council for Maritime Applied R&D (ECMAR), sector association that aims to develop a common strategy for European research in the maritime sector.
As part of our Italian activities, we have contributed to the work of the Trasporti Italia 2020 NTC and the formation of the Blue Italian Growth NTC. During 2019, following a participatory process, both clusters published their action plans for the three-year period 2019-2021. Fincantieri actively contributed to the drafting of these plans, whose contents were transferred into the contribution that the two associations made to the National Research Programme (NRP) drafting committee.
At the Italian level, we also collaborate with AIRI, the Italian Association for Industrial Research, contributing to the definition of the technical analysis documents, which are often taken as a reference for evaluating actions that support innovation, which are activated by public administrations.
Over the year Fincantieri contributed, through its representatives in the Italian regional technological districts, to the analysis of the context and local application of the sector's development strategies, contributing, in particular, to the definition of intelligent development strategies (S3)
of the regional territories in which the Company is located. The districts involved in cooperation relationships with the Group are:
- Maritime Technology Cluster Friuli Venezia Giulia (MareTC FVG);
- Distretto Ligure delle Tecnologie Marine (DLTM);
- Distretto Tecnologico Ligure sui Sistemi Intelligenti Integrati (SIIT);
- Distretto sull'Ingegneria dei Materiali polimerici e composti e Strutture (IMAST);
- Distretto Tecnologico sui Trasporti Navali, Commerciali e da Diporto (NAVTEC).
Norway: the main partnerships
The Group benefits from the relationships that the subsidiary VARD maintains with the Norwegian academic and research world. Partnerships are active with the NTNU - the Norwegian University of Science and Technology - and the SINTEF - The Foundation for Industrial and Technical Research. The latter currently represents one of the main independent research centres in northern Europe.
This close cooperation has led to the establishment of two centres for research- based Innovation (SFI):
- Smart Marine SFI: the centre's main focus is to increase the potential of the Norwegian maritime sector within the segment of sustainable waterborne transport;
- Move SFI: the centre's activities are focused on increasing the value of maritime operations by developing IT knowledge, methods and tools.
In addition, VARD has recently joined the Joint Industry Project (JIP), the Open Simulation Platform, with the aim of creating an open source digital platform to be used during the development of new ships.
United States: the National Shipbuilding Research Program
The American subsidiary Marinette Marine actively collaborates with research centres and universities, through the National
Shipbuilding Research Program (NSRP) funded by the US Government in order to carry out research and innovation initiatives. The NSRP project, founded in collaboration with U.S. Shipyards, studies and develops new processes and designs to improve ship production in the United States and make it more efficient. The activities carried out in this context range from welding techniques to design for maintenance concepts, via the study of strategies to reduce ship weight and the implementation of innovative coating solutions.
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FINCANTIERI GROUP
OUR MAIN PROJECTS
FINCANTIERI GROUP
In 2019, we have activated over 90 Research and Innovation projects, funded through our own resources and through Research and Innovation programmes funded at European, national and regional level. Some of the projects are carried
out through close cooperation with universities and research 90 institutes, through the awarding of specific assignments
or the funding of doctoral fellowships, research grants, or positions in partner universities. All the projects can be classified within 5 development trajectories, which are Fincantieri's vision for the sector.
RESEARCH AND INNOVATION PROJECTS
-
PIAQUO - Practical Implementation of AQUO: a cooperative project financed by the European LIFE programme, which aims to mitigate issues related to underwater noise and reduce its impact on the marine ecosystem by optimizing propellers and developing
a self-assessment model in real time.
- ESS Control System (v2.0): the project, financed internally by the subsidiary VARD, aims to study more capacious batteries, at a reduced cost, combined with an advanced management and control system for energy storage in order to guarantee longer autonomy and improve device safety.
- DC Grid Power Analysis: the project, financed internally by the subsidiary VARD, aims to optimize the Direct Current (DC) grid through advanced techniques for the simulation of micro grid applications in the marine sector.
Green Ship
For the past several years, the concept of greening has established itself as one of the guidelines for innovation processes and has acquired fundamental importance in the eyes of the public. The European Union, with the recent European Green Deal, the International Maritime Organization (IMO) and the Cruise Line International Association (CLIA), have defined precise objectives to reduce polluting emissions (in particular CO2) for the next decades.
We consider Green Ship as a milestone of our vision and the activities carried out in 2019 confirm this commitment.
Recent contracts, whether they are related to the sectors of new builds or refitting, feature the use of advanced technologies, such as liquefied natural gas (LNG), batteries, modern pollutant reducing and energy saving systems. Fincantieri applies a holistic approach in design and building, integrating in the best way the systems on board, pursuing continuous improvement in energy efficiency and supporting the introduction of new green fuels, technologies for de- carbonization, including fuel cells, as well as the study of high-performance materials. The main projects active and related to these issues are:
- Technologies with low environmental impact: a project conducted in cooperation with the CNR and the Universities of Genoa, Naples and Palermo, funded by the Italian Ministry of Economic Development. The project sets out to realize a laboratory ship approximately 25 metres long to study power generation technologies with low environmental impact.
-
Sustainable Ship Design Program: the project aims to create and validate a holistic approach to energy efficiency and emission reduction in ship design, also through a careful control
of EEDI (Energy Efficiency Design Index).
Smart Ship
and Autonomous
Ship
In the context of the development model proposed by the Industry 4.0 paradigm, the enhancement of IoT (Internet of Things) and smart devices has taken on fundamental importance. These are pervasive across all industrial sectors and ships are not exempt from this "intelligent" revolution. The improvement of monitoring systems and operational support systems give value added to the whole ship product and help improve their global safety.
The study of design and operational solutions to reduce the frequency of accidents, in addition
to measures capable of improving the resilience of ships, guarantee an increase of overall safety. Lastly, one of the most interesting challenges for the shipbuilding industry is to develop autonomous ships for use in any operational scenario, including in busy port areas. These concepts also have important repercussions on maintenance and after- sales activities, as well as strong implications on cyber security aspects. These aspects of the ship product are studied and developed both in specifically dedicated projects (the ECHO project,
for example) and to assess the impacts of projects activated with the aim of increasing digital integration and on-board autonomy (the STESS project, for example). Great importance is given to the modelling of possible cyber attack risks and the countermeasures to be taken both logically and physically to prevent these eventualities. The main projects related
to these issues which are already active or in advanced state of preparation are:
- OCEAN2020 - Open Cooperation for European mAritime awareNess: the project is funded by the European Defence Agency (EDA) and its purpose is the integration of unmanned systems in addition to
80 | 81 |
FINCANTIERI GROUP
FINCANTIERI GROUP
the introduction and use of situational awareness concepts in the maritime environment. The project envisages the cooperation of over 40 international partners.
- Integrated Bridge (SeaQ Bridge): this innovative solution allows the integration of a wide selection of navigation and communication solutions in a system controllable from the vessel's bridge. This allows a considerable simplification of on- board operations and a consequent increase in security.
- Cyber: project funded by the Liguria region and aimed at studying different cyber security aspects for critical infrastructures.
- STESS - Systems and technologies to improve after sales services: the project, financed by the Italian Ministry for
Economic Development, aims to develop prototype technologies, guidelines and processes that, in the future, will enable the offer and delivery of an overall after- sales service bundled with Fincantieri products.
- ECHO - European network of Cybersecurity centres and competence Hub for innovation and Operations: project, funded under the Horizon 2020 programme, aimed at developing a coordinated and structured approach to proactively increase the EU's cyber defence through efficient transectorial partnerships.
- FLARE - FLooding Accident REsponse: cooperative project, funded under the Horizon 2020 programme, which aims to develop a methodology based on risk analysis to assess and control the risk of flooding in real time on board passenger ships.
-
SAFEMODE - Strengthening synergies between Aviation and maritime in the area of human Factors towards achieving more Efficient and resilient MODEs of transportation: the project, funded under the Horizon 2020 programme, aims
to develop a new design framework for "HUman Risk Informed Design" (HURID) in order to identify, collect and assess human factor data in order to provide properly risk-based systems deisgn and operative procedures. - Smart Cabin (v2.0): the project, financed internally by the subsidiary VARD, aims to expand the knowledge base in the field of home automation in order to increase perceived quality and improve the onboard experience of passengers.
Smart
Yard
We have set ourselves several development objectives
as regards safety and productivity at work with a view to improving all the design and construction phases in the shipyard. The introduction and application of innovative computer models, logistics and quality control procedures in line with Industry 4.0 guidelines will drive the evolution of the shipyards of the future. This area has also given rise to studies and developments related to the cyber security aspects of production processes, with particular emphasis on the security of Information Technology (IT) infrastructures and the OT infrastructures of the shipyards (linked to the world of Operational Technology, such as, for example, the networks that control automatic machines), with a
pilot project started as part of the production process innovation project at the Marghera site. In the years to come, the aim will be to follow a ship throughout its entire life cycle, including trying to facilitate the last phase - decommissioning - studying new welding and joining procedures. The main projects active and related to these issues are:
- RAMSSES - Realisation and Demonstration of Advanced Material Solutions for Sustainable and Efficient Ships: a cooperation project, funded under the Horizon 2020 programme, that aims to widen the application of advanced materials in the European maritime industry by also carefully studying aspects related to industrial methods. In particular, the project sets out to analyse the different applications of high-strength steel and composites on board.
- Marghera shipyard production process innovation: a project, financed by the Italian Ministry of Economic Development, aimed at achieving the requirements for yards and infrastructure for the construction of large ship sections in the Marghera shipyard by reviewing the layout and the production process.
- Monfalcone shipyard production process innovation: the project, financed by the Italian Ministry of Economic Development, has the strategic goal to innovate the production process of cruise ships, focusing on increasing the efficiency and quality of the mounting and outfitting of the sections to significantly reduce dry-dock lead times.
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FINCANTIERI GROUP
Smart Offshore
Infrastructure
An important part of our business is the offshore market. Current trends in this sector are driven by the need to more efficiently harness the maritime environment through the use of structures aimed at work and life at sea as well as clean energy production. The displacement of offshore activities to ever remote areas will require the
study of support vehicles for transferring people and materials to and from land. The main projects active and related to these issues are:
- Modular Production Platform: the project aims to develop a concept of modular floating platform for offshore operations, particularly for the initial stage of oil and gas exploitation.
- Inertial Sea Wave Energy Converter: the project aims to design an innovative system to convert sea waves into electrical energy. Within the consortium, Fincantieri deals in particular with making the system suitable for the marine environment, structural studies and innovative materials for the hull construction.
84 | 85 |
FINCANTIERI GROUP | FINCANTIERI GROUP |
FOR A SUSTAINABLE SUPPLY CHAIN
We promote a responsible and sustainable supply chain based on long- lasting relationships founded on integrity, transparency and respect
Awareness of the supply chain's strategic nature and the need to coordinate a vast and varied network of suppliers means it is essential to seek long-term partner relationships that are based on transparency, collaboration and mutual respect.
Suppliers are required to adhere to the Code of Ethics and to share it with their employees, subsidiaries, collaborators and subcontractors, as well as to monitor compliance with it and to report promptly any alleged or actual violations of the law, the Suppliers' Code of
Development of a responsible and sustainable supply chain is part of a broader corporate vision that actively enhances and protects social and environmental responsibility, fully integrating them in the strategic guidelines.
Our suppliers are an integral part of this strategy and they are asked to share the
Purchasing Policy, the primary goal of which is to communicate the Group's commitment to strengthening the development of solid and long-lasting relationships with its partners in order to pursue a common goal of sustainable development together.
The core aspects of our Purchasing Policy are:
In this sense, it is extremely important that suppliers respect the Code of Conduct that the Company has implemented, which contains the principles and rules that must be observed.
In order to strengthen the bond with our suppliers, in 2019 we drew up the Suppliers' Code of Ethics, approved by the Board of Directors. This document is intended to convey the values, principles and responsibilities defined by our Code of Conduct, Charter of Sustainability Commitments and Sustainability
Ethics, the Organization, Management and Control Model pursuant to Legislative Decree 231/2001, or any contractual agreement with the Company.
The importance of the relationship with suppliers is underlined by the fact that our product is highly customized, since it is designed and engineered to the specific needs of the individual customer.
CONTINUOUS | |
SEARCH FOR | |
INNOVATION | |
PARTNERSHIPS | GUARANTEE |
OF QUALITY | |
CORE ASPECTS | |
OF THE |
Plan. It has been defined based on national and international best practices and principles. The document was developed by the Procurement Department with the involvement of various corporate functions (Sustainability, Human Resources, Internal Auditing, Legal Affairs) and was shared with Italian and foreign subsidiaries. The Code is based on three fundamental pillars:
This entails active management of make- or-buy procurement strategies during every single phase of development and implementation of the naval job, while maintaining constant synergy with its suppliers in the continuous search for high value added solutions.
PURCHASING | |
POLICY | |
HEALTH | RESPECT FOR AND |
AND SAFETY | SAFEGUARDINGOF THE |
AT WORK | ENVIRONMENT |
BUSINESS ETHICS | |
AND INTEGRITY |
SAFEGUARDING
AND RESPECTING
THE ENVIRONMENT
SUPPLIERS
CODE OF ETHICS
LABOR AND | BUSINESS |
ETHICS AND | |
HUMAN RIGHTS | |
INTEGRITY | |
The Suppliers' Code of Conduct is available on the website
The Purchasing Policy is available on the website www.fincantieri.com/globalassets/sostenibilita2/pdf/purchasing_policy.pdfwww.fincantieri.com/globalassets/sostenibilita2/responsabilita- economica/fincantieri_suppliers_code_of_ethics2.pdf
86 | 87 |
FINCANTIERI GROUP
WHO ARE OUR SUPPLIERS AND HOW WE
CHOOSE THEM
FINCANTIERI GROUP
The soul of the supply chain
Approximately 80% of the finished product is made with the contribution of our suppliers: Fincantieri works as de facto system integrator, taking responsibility for the shipbuilding project as a whole.
FINCANTIERI SUPPLY CHAIN
Awareness of the supply chain's strategic nature and the need to coordinate a vast and varied network of suppliers lead us to seek long-term partner relationships that are based on transparency, collaboration and mutual respect.
The data on the value of orders issued are given below.
VALUE OF ORDERS ISSUED BY PRODUCT CATEGORY
(euro/000) | ||
2018 | 2019 | |
Turnkey | 1,663,864 | 1,583,443 |
Supply | 1,334,825 | 1,304,499 |
Contracts | 439,691 | 525,568 |
Services | 425,427 | 556,483 |
Investments | 183,488 | 202,064 |
VALUE OF ORDERS ISSUED BY GEOGRAPHICAL AREA
(euro/000)
2018 | 2019 | |
Italy | 3.257,747 | 3,468,099 |
Rest of Europe | 697,283 | 684,998 |
North America | 786 | 40,368 |
Asia | 2,075 | 22,651 |
Oceania | 127,996 | 131 |
DESIGN
PURCHASING
RAW | COMPLEX | SEMI-FINISHED | TURNKEY |
MATERIALS | COMPONENTS | GOODS | |
Engineering | 38,610 | 48,044 |
Total | 4,085,905* | 4,220,101** |
*Intercompany Value 2018: 415,169 thousands of euros.
**Intercompany Value 2019: 409,658 thousands of euros.
The data refer to Fincantieri S.p.A. and to the Italian subsidiaries.
South America | 4 | 3,824 |
Africa | 14 | 30 |
Total | 4,085,905* | 4,220,101** |
PRODUCTION
OUTFITTING ASSEMBLY
PROJECT MANAGEMENT
Fincantieri S.p.A. and the Italian subsidiaries | of the previous year, showing a slight growth |
confirmed in 2019 the purchasing volumes | trend of 3%. |
Supply chain numbers
As regards the Italian activities, Fincantieri acts as leader and group hub for a large number of Small and Medium Enterprises (SMEs), an important factor in the flexibility and wealth creating capacity of local production systems, allowing them to access projects of great breadth and value, taking on a global market they would otherwise be excluded from due to their small size.
The Company supports a large network of highly specialized Italian SMEs in various macro-
sectors (furniture suppliers, air conditioning systems, electrical/electronic systems, etc.). In particular, through our shipyards,
we contribute to the maintenance and development of the industrial system of the regions in which we operate.
€ 4.2 bln | 84% | Over |
6,000 | ||
In issued orders | Italian companies | companies |
(€3.5 bln) | involved, mostly | |
SMEs |
88 | 89 |
FINCANTIERI GROUP
FINCANTIERI GROUP
e-Procurement
Fincantieri Suppliers is Fincantieri's e-procurement system dedicated to supplier management (www.fincantieri-suppliers.com), providing support throughout all the stages of procurement activities.
In line with the objective of strengthening communication with our suppliers, the portal is developed to manage the following processes:
• marketing, offering the possibility to each |
supplier to participate in the selection process |
- requests for offers, made available to selected suppliers in digital format, to which they can respond by sending their economic and technical offers on the same platform;
-
purchase contracts, digitally signed and made available electronically to suppliers, who
in turn can accept them directly on the system without printing and sending paper documents to Fincantieri.
Using the e-procurement system saves a lot of time, transport costs (and related emissions of CO2), printing and use of paper throughout the
suppliers to meeting all their legal obligations, in particular with regard to the rights of employees, starting from the qualification phase - and their inclusion in the Register of Suppliers - and the awarding of orders. Further controls are envisaged when entering the production sites and during the entire time they remain at the operating units.
These guidelines and trends were shared at the trade union level and implemented in the
most recent company agreements.
Indicators are used to monitor the supplier base, such as supplier turnover, employee turnover, employment contract type and geographical origin of the contracting companies' personnel.
In particular, from January to December 2019, 2,292 companies entered the Italian shipyards, of which 1,052 were not present at the beginning of the year.
regarding Italy by registering on the portal; |
procurement process.
NO. OF COMPANIES PRESENT | NO. OF OTHER COMPANIES THAT | NO. COMPANIES THAT ENTERED | |
PERIOD | IN ITALIAN SHIPYARDS IN THE | ENTERED IN THE SUBSEQUENT | |
ITALIAN YARDS IN 2019 | |||
MONTH | MONTHS | ||
January 2019 | 1,240 (A) | - | 2,292 (A+B) |
February-December |
Management of contracting companies
The production process we have adopted is structured to operate as an integrated model that makes use of skills, technologies and production capacities both inside and outside the Company.
The widespread participation of the resources involved in company business processes and the sharing of common principles, behaviours and objectives are fundamental for achieving continuous improvement objectives. We have therefore
The prospect of stabilizing the supplier base by pursuing long-term partnerships with the consequent continuity in terms of worker presence in the individual production sites is able to provide the best response to the expectations formulated by some institutional stakeholders in areas involved. The continuity of companies and the reduction of worker turnover can in fact allow local authorities to improve the planning of infrastructure and social services, as well as result in a more effective management of integration policies.
2019 | - | 1,052 (B) | - |
The data refer to Fincantieri S.p.A. | |||
In the same period, the shipyards hosted | from EU countries (18.3%). Non-EU citizens | ||
42,455 employees of contracted companies, | totaled 29%. | ||
mainly Italian nationals (52.7%) or coming | |||
ORIGIN OF WORKERS | |||
ITALY | |||
52.7% | 1.7% | OTHER EU | |
18.3% | 27.3% | EUROPE NON-EU | |
REST OF THE WORLD
The data refer to Fincantieri S.p.A.
pressed on, in continuity with the guidelines adopted in recent years, with significantly reducing the supply chain in some specific activities (insulation, painting) and at the same time we have intensified actions aimed at consolidating the relationship with suppliers considered strategic, in particular for supply activities and turnkey contracts,
We have signed further framework agreements with leading employment agencies in order to make it easier for satellite businesses to find qualified resources, also through specific training courses aimed at the most sought-after professional profiles.
In the field of employment relationships, permanent contracts accounted for 43.9% of
NUMBER OF CONTRACTING COMPANY WORKERS
PERMANENT | FIXED TERM |
18,615 | 15,897 |
43.9% | 37.4% |
The data refer to Fincantieri S.p.A.
the total, fixed-term contracts accounted for 37.4%. Agency staff contracts accounted for 11%.
AGENCY STAFF | OTHER TYPES | TOTAL |
4,664 | 3,279 | 42,455 |
11.0% | 7.7% | 100% |
through medium/long-term contractual agreements.
The entire supply process is subject to controls and constraints that commit
The most prevalent nationalities (excluding | Romanians (13.3%). |
Italians) were Bengalis (17.3%) and |
90 | 91 |
FINCANTIERI GROUP
FINCANTIERI GROUP
HOW WE MONITOR THEM
Supplier qualification process
Development and efficiency of our supply chain start immediately at the supplier selection phase, which follows a documented procedure in order
to guarantee impartiality and equal opportunities for all the parties involved.
Management and the continuous improvement of a pool of trusted and innovative suppliers is essential in order to achieve the goals we have set for ourselves at Group level in economic and sustainability terms. Fincantieri's purchasing office provides suppliers with constant technical support for all activities related to the selection and qualification process, including those concerning sustainability. Fincantieri recognises that the supplier base is a significant asset for the entire company, and as such it should be valued and protected. This is why we have developed a stringent qualification and performance monitoring process for strategic suppliers, based on the evaluation of economic, technical, reputational, social and environmental aspects.
In this sense, the collection of environmental and social information is active during the pre-qualification stage, e.g.
QUALIFICATION OF SUPPLIERS IN THE REGISTER
1
INFORMATION
REQUEST AND
COLLECTION
2
PREQUALIFICATION
3
VISIT TO THE
SUPPLIER
4
QUALIFICATION
A stringent performance monitoring process is carried out so that suppliers can maintain their qualified status and to promptly manage any critical issues.
A supplier remains qualified as long as the reasons for its inclusion in the Register of Suppliers continue to exist and until the monitoring of its performance is considered critical to the point of expulsion.
We monitor the supply chain using a life cycle management approach to reduce the environmental and social impact of a product or service over its entire lifetime to a minimum. In particular, sensitivity towards and respect for the environment is spread along the whole production chain, and this has led to increasing exchanges of information and documents with suppliers.
SUPPLIER MONITORING
1
MONITORING
2
CRITICAL ISSUE
MANAGEMENT
3
As part of the supplier monitoring system, we use a continuous performance evaluation system, in which all the relevant corporate departments take part (balanced scorecard), in order to guarantee that the required standards are met over time. Through the use of specific purchase methods adapted for the different product categories, we are committed to obtaining the best conditions and performance throughout the entire life cycle of the product.
SUPPLIERS EVALUATED
99%
Of the 759 qualified strategic suppliers at the end of 2019, 99% were subject to an evaluation, with the following results:
- 89% satisfactory;
- 10% with some gaps that can be resolved by themselves;
- 1% with serious issues, for which the adoption of an improvement plan or replacement is planned.
possession of environmental, health, work safety and social responsibility certifications.
ACTION
MONITORING
SUPPLIER
OVERSIGHT
MEETINGS
Moreover, the main problems are examined | |
through cross-involvement within Supplier | |
4 | Oversight, the body that gathers the |
different functions and departments |
and takes decisions resulting based on examination of these critical issues. Prominence is given to issues related to safety, the environment and protection of
92
93
FINCANTIERI GROUP
FINCANTIERI GROUP
labour rights, with specific focus on ethical and reputational aspects during both the qualification and the monitoring phases. These values are essential for the whole Group and are a priority in all company decisions, including those relating to the pool of suppliers.
Evaluation of certain fundamental aspects, such as the technical/professional suitability of the company, the regularity of contributions and remuneration of
employees, and the existence of a structure dedicated to safety at work, takes place during both the pre-qualification document collection phase and the quality inspection phase at the supplier's premises, as well as during entry in our shipyards.
For us business integrity and the ethical and reputational aspects that accompany it are a constant guideline. We are aware that corporate reputation is a strategic asset
that should be valued and protected, also so as not to compromise the trust placed in us by our stakeholders, and by using a risk intelligence based strategy we ensure that our supply chain leans towards more extensive compliance with regard to anti- money laundering, counter-terrorism, anti- corruption and sanctions at international level.
Furthermore, in order to prevent any possible infiltration of organized crime in the
contract award phase, in capital expenditure and in production activities, our Group has established a stronger cooperation with the local competent Prefectures, stipulating Legality and Transparency Protocols, which since 2017 have merged into a National Protocol.
Data on qualification and monitoring activities in 2018 and 2019 are given below.
QUALIFICATION AND MONITORING ACTIVITIES | ||
2018 | 2019 | |
Total number of suppliers registered on the portal | 3,387 | 3,727 |
Total number of qualified suppliers (strategic in the register) | 744 | 759 |
Total number of qualified suppliers in the year | 385 | 394 |
No. of new suppliers qualified in the year | 82 | 54 |
% orders run through the portal | 88.0% | 90.5% |
No. of audit visits carried out during the year | 51 | 68 |
The data refer to Fincantieri S.p.A..
94 | 95 |
FINCANTIERI GROUP
FINCANTIERI GROUP
PLAN
OBJECTIVE
COMPLETED
IN 2019
We periodically schedule monitoring activities at our suppliers through different types of audit visits. As the importance of the inspection visit is also recognised for sustainability, as set out in the Sustainability Plan, 35 sustainability audits were carried out in 2019 at strategic suppliers for human
rights, environment, health and safety aspects. Two checklists were implemented to make the evidence found during the audits more uniform: one related to the environment and one related to health, safety and human rights, which were divided into thematic areas that consider the
specific aspects analysed. The expectations considered in the checklists and verified during the inspections are summarized in the diagrams below, where a 100% result indicates full compliance with Fincantieri's requirements.
AUDIT RESULTS - ENVIRONMENT
ATMOSPHERIC EMISSIONS | ||
INSPECTION | 100 | WASTE |
80 |
AUDIT RESULTS - HEALTH, SAFETY AND HUMAN RIGHTS
ORGANIZATION | ||
HUMAN RIGHTS | 100 | HEALTH SURVEILLANCE |
INSPECTION | 80 | PERIODIC MEETINGS |
TRANSPORT OF DANGEROUS | WATER DISCHARGES | |
60 | ||
GOODS - ADR REGULATIONS | ||
40 | ||
SOIL AND SUBSOIL | 20 | NOISE POLLUTION |
CONTAMINATION | ||
SUSTAINABLE MOBILITY | WATER RESOURCES | |
PCB | ENERGY RESOURCES | |
MATERIALS | OZONE-DEPLETING | |
CONTAINING ASBESTOS | SUBSTANCES AND | |
GREENHOUSE GASES |
60 | |||
PLANTS | 40 | RISK | |
AND WORK | 20 | ASSESSMENT | |
EQUIPMENT | DOCUMENT | ||
FIRST AID | SPECIFIC RISK | ||
ASSESSMENT | |||
FIRE PREVENTION AND | INFORMATION, | ||
EMERGENCIES | TRAINING | ||
AND EDUCATION | |||
SAFETY SIGNS | ACCIDENT DETERMINATION | ||
PERSONAL | AND MANAGEMENT | ||
PROTECTIVE EQUIPMENT
During the year, 5 audits were below | To ensure compliance with our standards, we |
expectations and will be the subject of a | are committed to continuing our audit work |
new meeting in 2020 to check up on the | during 2020 and have a target of at least 40 |
improvement path identified. | audits. |
96 | 97 |
FINCANTIERI GROUP
FINCANTIERI GROUP
CHARACTERISTICS AND MANAGEMENT OF THE SUPPLY CHAIN OF FOREIGN COMPANIES
Fincantieri Marine Group: supply chain
Through Fincantieri Marine Group (FMG) we are one of the leading manufacturers of medium-sized ships in the United States and we operate for civilian customers and government agencies. The US Government is the main customer of Fincantieri Marinette Marine (FMM) and requires high quality, high performance goods and services provided by suppliers with proven experience.
In order to fulfil the objectives of Congress, the company supports small and medium enterprises in selecting its suppliers, in particular those run by women, economically and socially disadvantaged individuals, veterans, and companies that are part of the Historically Underutilized Business Zone Program (HUB zones). Founded in 1997, the HUBZone Program aims to promote economic development and employment growth in disadvantaged areas, helping small businesses located in these areas through privileged access to opportunities in the public procurement sector.
In 2019, 798 suppliers received a purchase order from FMG, the majority of which are situated in the United States.
With the exception of indirect purchases, almost all purchases are managed directly with the manufacturer, unless it is necessary to go through an agent or there is a cost advantage in resorting to a wholesaler or distributor.
All suppliers working in the government programme are required to sign a specific Non-Disclosure Agreement (NDA) and are selected according to a specific procedure for selection and evaluation which defines the process and the methods to guarantee
the selection of suppliers based on criteria of quality, technical capability, delivery times and continuous improvement. The goal
is to select a supplier able to sustain the programme, seeking the best compromise in terms of price and quality, in order
to support the business and satisfy the customer.
In accordance with the procedure adopted, specific audits are carried out on suppliers, which are also subjected to reassessments. In particular, when a supplier does not maintain the capabilities and qualities that led to its enrolment in the register and becomes critical to the FMM business, it is expelled from the list of usable suppliers. In particular, 4 audits were carried out on suppliers in 2019.
The purchase process is defined through various procedures that describe all the steps that must be followed to issue a purchase order according to the needs of FMM.
Suppliers are selected according to various criteria, starting from their experience in the marine sector and their observance of US law in social and environmental areas. Other additional factors that are considered include: estimated cost, purchase frequency, size, position, shipowner's recommendations, recorded non-conformities, etc.
An orientation course is provided to suppliers performing services in shipyards before the works begin, to verify that they meet certain insurance requirements. They also carry out shipyard safety training courses and are familiarized with the correct contact representatives within the company, in order to ensure an appropriate communication flow.
The procedure followed for requests for offers/quotations begins with the development of a list of suppliers that are able to guarantee the supply and meet all the working, environmental and government requirements as per terms and conditions
VALUE OF ORDERS ISSUED BY PRODUCT CATEGORY
(euro/000) | ||
2018 | 2019 | |
Turnkey | 37,811 | 102,146 |
Supply | 80,004 | 188,285 |
Contracts | 53,656 | 75,609 |
Services | 2,449 | 12,566 |
Investments | 4,614 | 1,329 |
Engineering | 1,555 | 20,838 |
Total | 180,089 | 400,773 |
The data refer to Fincantieri Marine Group.
defined by FMG.
For complex systems or larger services, the supplier subscribes and accepts the supply purpose and certain technical specifications. The data on the value of orders issued are given below.
VALUE OF ORDERS ISSUED BY GEOGRAPHICAL AREA
(euro/000)
2018 | 2019 | |
Italy | 0 | 0 |
Rest of Europe | 644 | 12,381 |
North America | 179,430 | 388,233 |
Asia | 15 | 159 |
Oceania | 0 | 0 |
South America | 0 | 0 |
Africa | 0 | 0 |
Total | 180,089 | 400,773 |
98 | 99 |
FINCANTIERI GROUP
FINCANTIERI GROUP
VARD group: supply chain
Approximately 60% of the VARD group's value of orders issued concern Norwegian suppliers and 32% are located in other European countries. The remaining 8% is distributed between South America and Asia.
The selection criteria used are based on the maker list, but also on the supply history and previous purchasing experiences.
Turnkey contracts are the most commonly used type of purchase orders, followed by materials and equipment. Together they represent 72% of the total orders issued by the group.
Purchasing management is entrusted to the Alesund headquarters, while purchase plans
are managed by the procurement teams of the various sites.
Goods and services are purchased from suppliers who can guarantee specific quality levels. Suppliers must be selected from those that have been registered as approved suppliers (maker list) through a direct evaluation by VARD or an evaluation by other companies within the VARD group. During the supplier selection process, preferential requirements include possession of certification concerning health, safety, anti-corruption and the environment.
For activities relating to the cruise sector, a new market segment for VARD, the central purchasing management team also uses qualified suppliers approved by the Parent
Company. Suppliers who work for VARD first receive safety courses, available in
5 different languages. The acquisition of goods and services is based on technical and commercial information. Requests for proposals are sent to the possible suppliers, and after the technical and commercial approval, a winning supplier is selected. A contract/agreement is then signed and a purchase order is issued.
Purchase orders are issued on two complementary systems, through which the entire procurement process is managed: production specifications, order approval processes, delivery times and payment conditions.
Audit activities are carried out periodically through the yard health, safety, environment and quality (HSEQ) managers accompanied by the central purchasing function to check compliance with the contractual requirements agreed for the jobs. In 2019,
75 audits were carried out on suppliers, 43 of which based on environmental and social criteria, none received a negative evaluation. In particular, VARD Vung Tau, which holds SA 8000 certification, also carried out 17 audits of its suppliers in 2019 based on checklists covering environmental and social issues; these did not reveal any critical situations.
The data on the value of orders issued are given below.
VALUE OF ORDERS ISSUED BY PRODUCT CATEGORY
(euro/000) | ||
2018 | 2019 | |
Turnkey | 546,680 | 570,944 |
Supply | 451,644 | 389,744 |
Contracts | 155,532 | 145,730 |
Services | 122,754 | 147,744 |
Investments | 14,273 | 7,532 |
Engineering | 62,381 | 66,730 |
Total | 1,353,263* | 1,328,424** |
*VARD group Intercompany Value 2018: estimated in approx. 427,600 thousands of euros.
- VARD group Intercompany Value 2019: estimated in approx. 518,900 thousands of euros. The data refer to the VARD group.
VALUE OF ORDERS ISSUED BY GEOGRAPHICAL AREA
(euro/000)
2018 | 2019 | |
Norway | 632,229 | 794,031 |
Rest of Europe | 604,898 | 430,664 |
North America | 4,002 | 6,277 |
Asia | 73,967 | 88,197 |
Oceania | 129 | 292 |
South America | 38,038 | 8,963 |
Africa | 0 | 0 |
Total | 1,353,263* | 1,328,424** |
100 | 101 |
FINCANTIERI GROUP
ONGOING DIALOGUE
The Group's focus on its relationships with suppliers is constantly evolving. Therefore, constant commitment and communication are essential in order to help the Company promote more positive and mutually beneficial relationships. We believe that close cooperation with the supply chain is essential in order to achieve high levels of quality in the finished product and in the entire production process. With a view to establishing a stable and long-lasting relationship, based on transparency and collaboration, we are actively committed to promoting dialogue with our suppliers through periodic meetings to share information, including on sustainability.
PLAN
OBJECTIVE
COMPLETED
IN 2019
During 2019, we organized our first sustainability meeting with the participation of 23 strategic suppliers.
Sustainability has steered these meetings, during which topics such as the Sustainability Plan and related objectives were presented, with particular emphasis on those concerning the supply chain. Moreover, in order to increase our partners' awareness of and involvement in social and environmental issues, a fact-finding questionnaire was sent out in 2019 to a panel of 75 suppliers considered significant,
with the aim of studying the actions and the governance model adopted. This approach gives us greater awareness of the certifications that suppliers possess and the corporate procedures, policies and management systems currently adopted by suppliers, and enables us to follow a shared path of sustainable development.
102 | 103 |
FINCANTIERI GROUP | FINCANTIERI GROUP |
FOR OUR CUSTOMERS
We imagine a world where respect for the sea, the environment and people is combined with technological excellence and where our products can be tools for sustainable growth
Our customers
We look towards the future, ready to take on new challenges in order to build the cruise ships, naval vessels, offshore units, ferries and luxury yachts of tomorrow. One of the keys to our success is our highly diversified activities in terms of final market, geographical area and customer portfolio.
Each new ship is the flagship of our capabilities' progress, enhanced by a system of selected suppliers that, with the best craftsmanship tradition and the class of a unique design, allow us to best interpret the style and needs of each segment. Technological development is essential because it means market competitiveness
and economic growth. Thanks to a pool of resources dedicated to naval research and design, we aim to create increasingly safe and environmentally sustainable ships. In our strategies, we have embraced the objectives of the International Maritime Organization (IMO), summarized in the slogan "Safe, secure and efficient transport on clean oceans".
CRUISE | The customers who purchase cruise ships produced by the Merchant Shipping Division of Fincantieri SpA and VARD are the | |
leading cruise operators in the world. The customer portfolio has expanded considerably over the last few years, thanks to the | ||
CUSTOMERS | ability to design and build widely differing types of cruise ship, with strong customization by customer, geographical area and | |
market segment served. | ||
The customers who purchase the products of the Naval Shipping Division of Fincantieri SpA and Fincantieri Marine Group | NAVAL | |
are government entities, both Italian and foreign, including the Ministry of Defence, the Navy, the Coastguard and all entities | ||
appointed to make acquisitions in the Defence sector. | CUSTOMERS | |
FERRY | Ferries designed and built by Fincantieri and VARD are intended for private and public clients, both Italian and foreign, | |
CUSTOMERS | operating mainly in the Mediterranean, the North Sea and the Baltic Sea, and meet the most demanding requirements in | |
this sector in terms of technological innovation, low environmental impact, energy saving and diversification. | ||
The mega-yachts designed by Fincantieri are intended for private customers who fall into the category of | MEGA-YACHT | |
ultra-high net worth individuals. | CUSTOMERS | |
EQUIPMENT, | The Group offers its naval equipment, systems and components to the internal captive market and to other shipbuilders and industrial | |
SYSTEMS AND | operators (such as, for example, engineering companies active in the installation of power plants as well as companies responsible for | |
COMPONENTS | carrying out complex projects, for instance in the Oil & Gas sector). The main customers of these equipment, systems and components | |
include the customers of each of the other business sectors: civilian, naval and offshore. In addition, the main customers include | ||
CUSTOMERS | shipbuilders and industrial operators. | |
The main customers of the Group's offshore division are shipowners and charter companies that provide logistical support and | ||
services for the construction and operation of offshore facilities for companies active in the Oil & Gas industry. These also include | OFFSHORE AND | |
large contractors specializing in offering turnkey services for the commissioning of large projects and offshore infrastructure, | SPECIALIZED | |
as well as the main drilling contractors specializing in the management of semi-submersible drilling vessels and platforms. In | ||
addition to the design and production of offshore support units, VARD also supports the production of special vessels, such as | VESSELS | |
ferries powered by liquefied natural gas (LNG) or hybrid (battery) systems, mainly for shipowners in Northern Europe, and vessels | CUSTOMERS | |
used by customers active in the aquaculture sector and the maintenance and construction of offshore wind farms. |
104 | 105 |
FINCANTIERI GROUP
CUSTOMERS BY MAIN BUSINESS AREA
CUSTOMERS DIVERSIFICATION
2002 | TODAY 1 |
SHIPS DELIVERED IN 2019 AND EXPECTED DELIVERIES IN THE COMING YEARS
Ships delivered in 2019
Expected deliveries until 2027
FINCANTIERI GROUP
MORE SUSTAINABLE AND SAFER SHIPS
The world market for cruise ships is | afar. As early as the beginning of the 20th |
rigorous, selective and is characterized by | century, the shipyards of Genoa and Trieste |
the presence of high-profile shipbuilders. | were already producing jewels of design |
In this scenario, we are leaders in design | and fittings, with extraordinarily innovative |
and production, a success that comes from | engineering solutions. |
CRUISE | ||||
2 | ||||
MM | Guardia | US Navy | ||
MM | Costiera | |||
Italiana | Italiana | |||
Italiana | Qatar Emiri | U.A.E. | ||
US Coast | ||||
Guardia | Naval | |||
Guard | Forces | Navy | ||
Costiera | Turkish | |||
NAVAL | Italiana | Algerian | Iraq | |
Coast | Navy | Navy | ||
Guard | ||||
US Navy | Bangladesh | Peruvian | Indian | |
Coast | Navy | Navy | ||
Guard | ||||
US Coast | Armed | Kenya | Saudy | |
Guard | Forces of | Navy | Arabia | |
Malta | Navy | |||
3 | ||||
& SPECIALIZED VESSELS | 5 | 4 | ||
OFFSHORE | 6 | |||
8 46
3 37
15 15
DUILIO
1923 Genoa Sestri The first Italian ocean super-liner
VESPUCCI
1931 Castellammare di Stabia The largest training ship of all time
VICTORIA 1931 Trieste
The first air-conditioned ship
REX 1932 Genoa Sestri The first ship with spa and tanning beds. The
fastest ocean liner in the world (30 knots)
KAISER FRANZ JOSEPH 1912 Monfalcone
The largest ship ever launched in the Mediterranean
SATURNIA
1927 Monfalcone
The first ship with balcony cabins
AUGUSTUS
1927 Genoa Sestri
The first ship with Lido bridge and outdoor pool
CONTE DI SAVOIA 1932 Trieste
The first ship equipped with stabilizers
RAFFAELLO
1965 Trieste
The last ocean liner built in Italy (Michelangelo and Raffaello
are twin ships)
EUGENIO C.
1966 Monfalcone The first Costa cruise ship
6 | 6 |
Source: Company information at 31.12.2019.
- As of 31 December 2019.
- One cruise ship below 10,000 Gross Ton delivered and one under construction.
- Topaz Energy and Marine have become P&O Maritime Logistics. The new logo is not yet available.
- Previously called: Technip.
- Previously called: Farstad.
- Ferry operator.
MICHELANGELO | OCEANIC |
1965 Genoa Sestri | 1966 Monfalcone |
The last ocean liner built in Sestri | The first cruise ship |
equipped with | |
magrodome |
106 | 107 |
FINCANTIERI GROUP
FINCANTIERI GROUP
A cruise ship is an ideal and self-sufficient floating city in constant communication with land. It is designed, built and managed to respect the ecosystems of the areas in which it must operate and to safeguard the health and life of those temporarily living there for work or fun, thousands of people from different countries and cultures, who live together and adhere to its rules of governance.
We oversee all stages of production, including design, supplier selection,
technological and innovative solutions (in particular in the areas of safety, noise reduction, stability and ship operating speed) and the results they yield can be used in the ship design. In this sense, each ship can be considered a new product as it is the result of the combination of specific design activities in response to customer needs and of research and innovation activities.
The Group offers a diversified product portfolio, which includes ships of very
We are an accredited representative with the IMO, the specialized Agency at global level for issuing directives on maritime safety and environmental protection. The main conventions between the IMO's member states are aimed at:
- improving maritime security (mostly from a safety point of view) - SOLAS;
- limiting the pollution of the seas - MARPOL;
- standardizing maritime labour rules - ILO.
In particular, the SOLAS (Safety Of Life At Sea) Convention aims to specify common international standards in order to safeguard human life at sea, establishing safety standards for technical aspects and for
the preparedness of personnel in case of emergency. All ships produced must comply with these rules, which are constantly evolving.
construction, commissioning, testing and delivery.
The ships designed and built by the Group are not standard vessels; each one is a tailor-made product that reflects the specific needs of the customer. In addition, we carry out activities to develop applied
different sizes, from 10,000 to 175,000 gross tonnage and with a length between 110 and 345 metres, characterized by the diversity and richness of the fittings in the hotel part and the entertainment services offered to meet the needs of all types
of customers.
PRODUCT EVOLUTION: SAFETY AND RELIABILITY
Ships delivered | Ships delivered | Ships delivered | Ships delivered | ||
before 2009 | after 2009 | after 2010 | after 2024 | ||
2009 | 2010 | 2024 | |||
Determistic damage stability | Probabilistic damage stability | SOLAS - Safe Return to Port | SOLAS 2020 | ||
Further class notations: | Ships of 120 metres in length | Increased stability requirements | |||
Machinery availability. | or more or with 3 or more main | for new cruise ships in conditions | |||
Dual propulsion system. | vertical zones (mvz) must be | of partial flooding (damage) | |||
Independent propulsion system. | designed so that, in an emergency, | caused by collision and |
THE NUMBERS OF COMPLEXITY - What you need on average to build a cruise ship
passengers and crew can remain | grounding. |
on board and the ship can proceed | |
to the nearest port. |
MQ OF PUBLIC SPACE: | KMs OF CABLE: | ||
THE SIZE OF THREE | MORE THAN 7 TIMES | HOURS OF | |
FOOTBALL FIELDS | THE DISTANCE FROM | 3,800 | SHIPYARD WORK |
22,000 | ROME TO VENICE | ||
135,000 | 2,000,000 | ||
DESIGN HOURS |
Commercial ships, including cruise ships, must have a valid class certificate, issued after verification that they comply with the regulations of a classification body. The primary aim of the classification body is to ensure that ships are designed, constructed
such as docking in U.S. ports that follow U.S. Coast Guard (USCG) rules or, if they relate to hygiene, food processing, environments, accident prevention, and air conditioning systems, those of the U.S. Public Health Service (USPHS).
The Group is directly involved in the development of international regulations for safety and our activities are carried out in close collaboration with the flag agency, classification bodies, the sector's industrial associations, shipping companies and the main international research bodies. Monitoring of regulatory developments
is therefore a fundamental element, at a strategic and technological level, in the early identification of possible trends in the market and of the emergence of new needs by proposing solutions that are innovative and competitive at product level and comply with the technical, economic and environmental feasibility standards at process level.
and maintained in such a way as to minimize the risks to life, the environment and property. Achievement of the class demonstrates that all the controls in the various phases of the ship's life have been successful.
All equipment and appliances installed on board follow the manufacturer's or internationally recognized standards.
Other regulations are determined locally,
In addition to being a product designed to be safe, ships are designed and built for the comfort of everyone on board, whether passengers or crew members. There are also dedicated relaxation areas, which may include swimming pools, bars, gyms or discos for crew members.
The ships are designed to make more and more spaces accessible to people with disabilities, for example by providing easy
108 | 109 |
FINCANTIERI GROUP
FINCANTIERI GROUP
access with ramps, optical and acoustic warning systems and devices that facilitate mobility and therefore allowing all travellers to enjoy the full range of services available on board.
With regard to materials, the Company has adopted an internal procedure on the "Asbestos Free Declaration" which aims to ensure that the products produced are free of asbestos, polychlorinated biphenyls (PCBs) and ozone depleting substances (ODS). The procedure also defines the components, structures and equipment that require the Declaration by suppliers. In addition, with regard to the management of chemical products, suppliers must declare and ensure that their products and services are developed using only materials and substances that are not prohibited by applicable laws and regulations and that are not classified as mutagenic or carcinogenic. In the last phase of the ship's construction, dedicated sessions are held to enable the crew to familiarize themselves with the onboard systems, particularly those relating to safety, before the ship enters service. In general, education and training is provided directly by the suppliers of the different systems.
In naval shipbuilding, we are one of the few operators able to design and build a wide and complete product portfolio that includes surface combat vessels, auxiliary and specialized vessels, as well as submarines. Our ships are equipped with state-of-the-art command and control systems. Although the Group assembles and installs armaments supplied by third parties in the process of building and equipping its naval vessels according to the customer's instructions, the Group has never manufactured and does not manufacture armaments or weapon components itself.
As part of the general concept of the naval vessel's survivability, studies are being carried out to further reduce its vulnerability to cyber attacks. In addition, an observatory has been set up to screen laws and regulations relating to environmental aspects, chemical risk and health and safety at work, with the aim of making the already established contractual requirements complementary to the current regulatory situation.
For each ship, the residual risk assessment document as provided for by Legislative Decree 81/2008 is delivered to the ship's captain.
Systems to improve air quality have been introduced for the well-being of the crew and, where it has been possible to increase the well-being of the crew compatibly with the vessel's operational profiles,
the following improvements have been introduced:
- increased air changes per hour for the heating, ventilation and air conditioning (HVAC) system;
- increased fresh air supply for each air change per hour for the HVAC system;
- extension of HVAC in some operational areas (e.g. hangar);
- increased liveability of the areas intended for the crew by ensuring more square metres per person, introducing modular cabins with attached integrated toilet/ shower unit and partitions to cut noise pollution;
- use of water-based paints for interior areas.
The renewal process for the Italian Navy fleet has a distinctly dual approach, typical of the Armed Forces. The Navy is often engaged in non-military tasks such as aiding populations affected by natural disasters, monitoring and protecting archaeological heritage, and transporting humanitarian materials and basic necessities, which is influencing the current use of the fleet and the way in which the renewal process is taking place. The new constructions are designed right
from the preliminary phase of the project to be flexible, modular and reliable, with low environmental impact, easily reconfigurable and upgradable.
In the event of an operation to support populations affected by a natural disaster, the new vessels will be able to provide drinking water, electricity and health support through its own hospital facilities. In addition to the particular attention giving to reducing emissions of fumes, the treatment of wastewater and the use of bio-fuels, the vessels will be able to intervene to contain a contaminated tract of sea, with the possibility of collecting and stowing the polluting substances.
Consolidating the experience gained on the projects for the Italian Navy, the logistics ship for the Qatari Navy (LPD Qatar) is being developed, where the concepts of flexibility, modularity and low environmental impact have been enhanced. The new vessel can also be used for humanitarian purposes in crisis areas both in times of peace and in times of war.
Lastly, the International Convention for the Prevention of Pollution from Ships (MARPOL) aims to prevent and minimize pollution from ships, whether accidental pollution or pollution resulting from routine operations. We are committed to various projects with the aim of containing environmental impact throughout the ship's life cycle.
These initiatives are described in detail in the chapters "For innovation - Our main projects" and "Fincantieri for the environment - Our ever greener ships".
110 | 111 |
FINCANTIERI GROUP
QUALITY AT THE CORE
FINCANTIERI GROUP
We are aware that the complexity of our business requires high standards in terms of quality, cost and time of products and services offered. This is why we have adopted a Quality Policy able to convey the commitment of the Group's resources on
Every company or division adopts a Quality Management System (QMS), certified according to the ISO 9001 standard, which ensures compliance with the best standards. 100% of Italian production sites are certified ISO 9001 and 96% at Group level.
The Quality Policy defines our mission to | Quality Policy into the strategic choices and |
achieve and maintain an excellent level of | business processes at the various levels. |
quality in all our activities, incorporating | |
the following seven points of the corporate |
specific key points. The goal is to achieve and maintain an excellent level of quality in strategic choices, business processes and every activity.
Quality assurance at each stage of the process, from the acquisition of the contract to the design and procurement, down to the production or provision of the services, is entrusted to each process owner.
Market challenges and complexity are increasingly driving continuous improvement and innovation: projects, activities and methods must be continuously improved, looking for solutions that make development and construction processes simpler, faster and more reliable, defining sustainable, fail-safe standards that are respected by all
CLARITY
OF OBJECTIVES
CONTINUOUS
IMPROVEMENT
THE 7 POINTS
OF FINCANTIERI'S
QUALITY POLICY
QUALITY
OF INFORMATION
All resources, whatever level and organization they belong to, must know what quality, cost and time objective they have to achieve
Attention to correct planning, control and compliance with plans is essential for quality
EFFECTIVEoperations
PLANNING
QUALITY AS THE
SOURCE OF
PREVENTION
The quality of | |
processes, and | |
consequently of | |
products and services, | QUALITY OF |
also depends on | |
PEOPLE AND | |
the timeliness, | |
completeness | RESPONSIBILITY |
and accuracy of | |
information | |
Training, developing | |
and motivating | |
resources that can | |
reach the optimal level | |
of competence and | |
skills |
RIGHT
FIRST TIME
Every standard, every process and every activity must be designed to work well the first time
Product quality is built step by step into every single phase of the process: every actor, whether internal or a supplier, must know the rules, regulations, standards, practices and conditions
The Quality Policy is available on the website www.fincantieri.com/globalassets/sostenibilita2/responsabilita-prodotto/quality_policy.pdf
112 | 113 |
FINCANTIERI GROUP
FINCANTIERI GROUP
PLAN
OBJECTIVE
COMPLETED
IN 2019
As envisaged in the Sustainability Plan, we maintained all our quality certifications in 2019. To maintain the ISO 9001:2015 certification, the Group's divisions and companies were subjected to official audits by the certification body. The 12 audits conducted by the certification body RINA in 2019 on the Quality Systems of Fincantieri's Italian organizations certified as compliant resulted in satisfactory outcomes. Moreover, in line with its responsibilities, the company Quality body has carried out a series of internal audits, aimed at verifying the correct application of the corporate documentation on processes that have a significant impact on quality, as required by the ISO 9001 standard. In particular, four macro organizational areas were examined:
- the Quality bodies of the shipping departments/units;
- the Corporate functions related to primary processes;
- the Quality bodies of the production sites (Monfalcone, Sestri, Ancona, Integrated Shipyard);
- the Quality bodies of the Italian subsidiaries (Isotta Fraschini Motori, Marine Interiors, Cetena, Seastema, Issel Nord, Fincantieri SI).
A total of 17 audits were carried out and the formalized findings were almost all class "C", i.e. minor and/or similar to a recommendation, with the exception of one class "B" finding made against one of the subsidiaries, relating to the way performance and quality indicators are monitored.
As regards the US subsidiaries, Fincantieri Marine Systems North America Inc. and the Fincantieri Marine Group's shipyards Marinette and Green Bay have achieved ISO 9001:2015 certification. The subsidiary VARD carries out its operations in compliance with the Group's Health, Safety, Environment and Quality (HSEQ) Manual and the Policy, the principles and strategies of which are based on the ISO standards. VARD's efforts are aimed at ensuring that safety is achieved at all times and in all areas. Its production sites all have ISO 9001:2015 certification.
For more information on the certified shipyards and companies, see the website www.fincantieri.com/en/ sustainability/certifications
In addition to the system certifications mentioned, the subsidiary Marine Interiors is in charge of the design, refitting and delivery of turnkey cabins and has achieved the MED B product certification and MED D process certification issued by RINA certification body. MED certifications attest compliance with EU Directive 2014/93/EU
- Fire Protection Requirements of Marine Equipment Directive (MED).
In 2019, Fincantieri Infrastructure manufactured and assembled the new bridge in Genoa (Polcevera viaduct), entrusting part of the production to the Castellammare di Stabia and Sestri shipyards: in order to do so, these shipyards have obtained ISO EN 1090 certification - Execution of steel structures and aluminium structures.
In December 2019, the Naval Shipping Division obtained the NATO AQAP 2110 (Quality Assurance Requirements for Design, Development and Production) certificate issued by the Swiss Association for Quality and Management Systems (SQS) for the Genoa Department and the Muggiano and Riva Trigoso sites.
Quality monitoring
In Italy, the Quality Management System is also applied to job orders, whether they be naval or other products, through the job Quality Plan (QP).
The QP is a set of documents and Control Plans attached to the contract and governs all aspects related to quality assurance, control and monitoring valid for the job in question. It guides the operating structures in the correct design, construction and testing of the product.
The job Quality Plan is structured as follows:
- object of the project;
- main characteristics of the job;
- applicable documents:
- for the project;
- rules, laws and regulations;
- quality system standards and procedures;
- standard to be applied;
- organizational aspects:
- organization and resources for the job;
- interfaces and communications;
- control and inspection plans.
When designing and building complex products and systems, such as cruise ships, military submarines or industrial diesel engines, there is always the possibility that the process may be subject to deviations from standards, design changes, unexpected events and supply or execution errors. These "non-quality" events are normally detected and tracked by internal structures, by the customer's inspection staff and by the classification bodies, or more rarely after delivery, with interventions in the guarantee and after sales period. The remedial actions follow the industrial practice that involves increasing costs/times to adjust, repair, redo and replace in order to minimize the impact for the customer. The quantitative and qualitative analysis of these events, appropriately recorded and classified, gives rise to mechanisms for reviewing
the projects; in the case of shipbuilding, the analyses trigger the processes of continuous improvement, in order to ensure that the same errors are not repeated in subsequent jobs. A closing report/booklet is produced, with the main lessons learned, in order to share with all the operating sites the countermeasures to the error causes identified and make the consequent prevention and improvement actions possible.
114 | 115 |
FINCANTIERI GROUP | FINCANTIERI GROUP |
We regularly monitor quality indicators, at a divisional level (for homogeneous business areas) and at production level:
- shipbuilding sectors (cruise ships, naval vessels, mega yachts), are classified by job and by construction, which allows detailed comparisons to be made with regard to homogeneous "objects" and "phases";
- in the plant and components sector (e.g. diesel engines, turbines, naval systems and systems, cabins for passenger ships), the classification is by production process, facilitated by repetitions in small and medium-sized series.
The VARD subsidiary also uses the Quality Plan for its projects. The quality indicators and the achievement of the related annual objectives constitute a fundamental part of the incentive programmes of the entire Fincantieri organization.
Regarding the management of military orders, during 2019 four audits were carried out by the Italian Government Quality Assurance (AQG), which involved the FREMM Programme, the Multi-Purpose Patrol Vessel (PPA), Logistic Support Ship (LSS) and Landing Helicopter Dock (LHD) jobs, with 16 non-conformities, of which 11 have already been resolved and 5 are being resolved.
Customer satisfaction
The main sector in which we operate is intrinsically characterized by a limited number of competitors and customers. The measure of customer satisfaction and retention cannot therefore be based on significant data and statistical samples. It requires instead a long- term analysis of the relationship between market trends, assignment of orders and jobs to the various players, the time taken
to transform negotiations into orders, the maintenance of historic customers, and the acquisition and retention of new customers.
We regularly survey the market and the competition, from which certain "loyalty" factors can be deduced.
In Italy, five new ships were delivered in 2019, four cruise ships and one naval vessel. Delivery of the 8th frigate in the FREMM programme was accompanied by a letter of congratulations from the customer OCCAR (Organisation for Joint Armament Co- operation).
As part of the Sustainability Plan, there is a specific objective regarding customer satisfaction which includes the development of the Customer Satisfaction Index (CSI) system. For its regulation, in 2019, the internal procedure was defined and tested on two orders, one from the Cruise Ship Division and one from the Naval Shipping Division. The resulting CSI of 85/100 is a very satisfactory starting value.
Fincantieri Marine Group surveys customer satisfaction three times a year through
meetings with representatives of Lockheed Martin and the US Navy. These sessions cover the following areas: technical, testing, planning, quality, after sales and Integrated Logistics Support (ILS). During these monitoring sessions, the company receives feedback on the degree of customer satisfaction and on any problems. The corrective actions are defined at that time, with subsequent follow-up.
In VARD, customers' requirements and expectations are defined during contract negotiations and are maintained and developed throughout all the project stages. Customer satisfaction is monitored periodically and continuously, both during the production stage and during the guarantee and after-sales period. Each product is subject to voluntary feedback by customers. Customers also provide the company with voluntary testimonials. Unsurprisingly, the company's slogan is "Built on Trust".
116 | 117 |
FINCANTIERI GROUP
ONGOING DIALOGUE
FINCANTIERI GROUP
The shipbuilding sector is constantly developing, which is why in order to create products that are increasingly safe, sustainable, efficient and have a lower environmental impact, it is important to create long-term relationships with all the stakeholders involved in the process. Therefore, we are in constant dialogue and cooperation with:
- shipowning companies, which intercept the new needs of end customers (cruise passengers) and promote the development of the market in terms of products and services. We constantly listen to the needs of the shipowner, building each ship according to their specifications. By nature, the entire shipbuilding process requires a continuous relationship between the Project Manager, the customer and their staff;
- the bodies issuing the regulations, whether national or private, which monitor ship operations and update the regulations to prevent damage and accidents;
- suppliers that develop and make available new products and systems for new constructions based on market requirements.
Our challenge is to integrate and unify the demands of these industry players in the most effective way and to combine the design, safety and sustainability of our ships in the optimal way.
In order to maintain constant contacts, we are also committed to collaborating with the various stakeholders (shipowning companies, agencies, suppliers) through working parties, one-to-one meetings, video and tele-conferencing.
An important opportunity for dialogue with customers and potential customers is participation in exhibitions. This is an essential activity for the Group as it provides direct contact with customers, reinforces the consolidation of the brand in the reference markets and can be an opportunity to communicate the launch of new products. Fincantieri took part in 25 exhibitions in 2019.
EXHIBITIONS
6-8 May | 12-14 November |
POWERGEN EUROPE | |
SEA AIR SPACE - SAS | |
PARIS | BUSAN | |||||
WASHINGTON | - FRANCE - | VENICE | - SOUTH KOREA - | |||
- USA - | - ITALY - | |||||
ARLINGTON | 22-25 October | |||||
- USA - | 25-28 September | |||||
MADEX | ||||||
25-27 June | ||||||
MONACO YACHT | ||||||
15-17 January | ELECTRIC AND HYBRID | SHOW - MYS | ||||
WORLD EXPO 2019 | 18-23 June | |||||
SURFACE NAVY | ||||||
ASSOCIATION - SNA | MONACO | SALONE NAUTICO | ||||
AMSTERDAM | VENEZIA | SINGAPORE | ||||
- PRINCIPATO DI MONACO - | ||||||
- NETHERLANDS - | ||||||
NEW ORLEANS | ||||||
- USA - | ||||||
14-16 May | ||||||
4-6 December | IMDEX ASIA | |||||
INTERNATIONAL | ||||||
WORK BOAT SHOW | ||||||
FT. | 30 October-3 November | SHANGHAY | ||||
LAUDERDALE | FORT LAUDERDALE | - CHINA - | ||||
- USA - | ||||||
INTERNATIONAL BOAT | ||||||
SHOW - FLIBS | ||||||
3-6 December | ||||||
MARINTEC CHINA | ||||||
PALM BEACH | ||||||
- USA - | ||||||
28-31 March | SYDNEY | |||||
INTERNATIONAL | ||||||
BOAT SHOW | 8-11 April | - AUSTRALIA- | ||||
SEATRADE CRUISE GLOBAL | ||||||
18-20 June | 8-10 ottobre | |||||
CRUISE SHIP | ||||||
MIAMI | INTERIORS EXPO | DUBAI | PACIFIC 2019 | |||
- USA - | - UNITED ARAB EMIRATES - | |||||
RIO DE | VIAREGGIO | 26 February-2 March | ||||
- ITALY - | ||||||
JANEIRO | ||||||
DUBAI BOAT SHOW | ||||||
- BRAZIL - | ||||||
2-5 April | 9-12 May | |||||
VERSILIA YACHTING | DOHA | |||||
LAAD DEFENCE | ||||||
RENDEZ-VOUS | ||||||
& SECURITY | - QATAR - | ABU DHABI | ||||
11-12 June | ||||||
- UNITED ARAB EMIRATES - | ||||||
CYBER SECURITY | ||||||
BARCELONA | 26-28 June | |||||
FOR ENERGY | 8-20 December | |||||
- SPAIN - | & TRANSPORT | GENOA SHIPPING WEEK | ||||
INFRASTRUCTURE | 14 ottobre | QATAR | 17-21 February | |||
NATIONAL DAY | ||||||
4-5 December | CONNEXT | |||||
IDEX/NAVDEX | ||||||
KUWAIT | ||||||
CRUISE SHIP INTERIORS | ||||||
- KUWAIT - | ||||||
EXPO EUROPE | GENOA | |||||
10-12 December | ||||||
- ITALY - | ||||||
GULF DEFENSE & AEROSPACE - GDA |
118 | 119 |
FINCANTIERI GROUP | FINCANTIERI GROUP |
FOR OUR PEOPLE
Everything we do focuses on enabling the growth, enhancement and training of people, based on the daily attention we pay to the quality of our work and our relations with others
EMPLOYEES BY TYPE OF CONTRACT
TOTAL 19,823
10,551
53% BLUE COLLAR EMPLOYEES
1,284
6% FIXED TERM
100 | 18,539 |
80 | 94% PERMANENT |
60 | |
40 |
Developing a globally shared vision, spreading a common culture and promoting an increasingly motivating work environment that responds quickly to business needs are the challenges we set ourselves in 2019. The constant development and enhancement of people are the strategic levers that increase
WORKFORCE BY GEOGRAPHICAL AREA
TOTAL 19,823
their engagement in the Company. Our objective, through the implementation of a common "People Strategy" among the Group companies, is to aim for excellence by increasing people's well-being and their productivity.
7,608
38% WHITE COLLAR EMPLOYEES
1,274
7% MIDDLE MANAGERS
The data refer to the entire Fincantieri Group.
19,582 |
99% FULL TIME |
241
1% PART TIME
390
2% SENIOR MANAGERS
9,334 | ITALY | ASIA |
47% | ||
2,204 | ||
11% | 775 | |
4% |
NORTH
AMERICA
121 | ||
1% | ||
7,389 | ||
SOUTH AMERICA | 37% | REST |
OF EUROPE |
WE AIM TO ATTRACT TALENT
We are convinced that real change | For this reason our selection process is |
depends on who is promoting it: people | structured, transparent and guarantees a |
who contribute to creating the future of | thorough evaluation of candidates in terms of |
the Company and their own future with | technical and cross-functional skills, aptitudes |
commitment, dedication and passion. | and professional aspirations. |
SELECTION PROCESS |
COLLECTING CVS | PHONE INTERVIEW | APTITUDINAL/ |
MOTIVATIONAL | ||
TEST |
SCREENING | INTERVIEWS | JOB OFFER |
The data refer to the entire Fincantieri Group.
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During 2019, over 21,000 applications | internships were activated, both curricular | |||||||
were received through the company's web | and post-curricular, of which 49% were then | |||||||
portal "Work with us" (compared to around | transformed into employment contracts. The | |||||||
20,000 in 2018). In Italy, 787 people were | Group as a whole hired 2,767 people, 44.7% | |||||||
hired, of whom 62% are under 35, and 272 | of whom were 30 years of age or under. | |||||||
HIRES BY AGE GROUP AND GENDER | ||||||||
≤ 30 YEARS | 30-50 YEARS | ≥ 50 YEARS | TOTAL | |||||
2018 | 2019 | 2018 | 2019 | 2018 | 2019 | 2018 | 2019 | |
Total | 1,034 | 1,238 | 1,248 | 1,237 | 330 | 292 | 2,612 | 2,767 |
of which women | 188 | 234 | 217 | 185 | 46 | 34 | 451 | 453 |
The data refer to the entire Fincantieri Group.
Superiore Sant'Anna in Pisa and the first level university master's degree in nautical and naval Interior Design with the University of Trieste.
In 2019 Fincantieri was awarded the Universum prize as Most Attractive Employers among companies in the Industrial Engineering and Manufacturing sector
according to STEM (Science, Technology, Engineering & Mathematics) student
course (Higher Technical Education and Training) for ship designers in Monfalcone, the course for Process Technician for Shipbuilding in Genoa and the two editions of the "Ship Master" courses in La Spezia and Sestri Levante. To support the expansion of the training offered by institutions in the Ligurian capital, we have joined the TecnOrientarsi Memorandum of Understanding, signed in October between Confindustria Genova and the network
of professional colleges. We also offer work-study opportunities, as part of the PCTO (Paths for Cross-functional Skills and Orientation), to students at technical
In an increasingly complex labour market, where there is a growing professional mismatch between supply and demand for profiles with technical and technological skills, we work constantly to make selection processes better and more effective and to enhance our recruiting and employer branding policies and strategies. Our employer branding strategies are translated into an increasingly active presence on social networks, including LinkedIn and Instagram, and above all through a synergistic network of education and training actors, at national and international level, which see the involvement of secondary schools, Istituti Tecnici Superiori Foundations (ITS - Higher Technical Colleges), universities and business schools, with the aim of promoting the development of knowledge and skills sought and applied in the Company.
Partnerships with universities
In order to have a direct and constant contact with students and teachers, we actively participate in "Career Days" organized by universities and various local institutions, we promote meeting days with university students dedicated to introducing the Company ("Meet Fincantieri"), we carry out moments of learning with seminars, classroom testimonials, orientation sessions, as well as guided tours for students and school classes at construction sites and technical departments. We have several conventions in place to support the development of teaching, scientific research and higher education at university and postgraduate level. In particular, Fincantieri has collaborated in and promoted the Cassa Depositi Prestiti (CDP) MBA master's degree at the Luiss Business School in Rome, reserved for employees of the CDP group. We are also collaborating in the design
of the MIND - Management & Innovation Design - master's degree with the Scuola
rankings of the leading Italian universities. In 2019, Fincantieri won the Universum award as Best Employer for STEM professionals, professionals with up to five years' experience, among companies in the Industrial Engineering sector.
Technical institutes and ITS Foundations
In 2019, we intensified our relationship with secondary educational institutions to ensure the training of qualified resources with profiles that allow them to be easily employed in typical roles in the shipbuilding industry, both within the Group and in satellite companies. The main collaborations activated with a view to supporting orientation and employment are given below.
-
Technical institutes and vocational schools: we have launched various initiatives in collaboration with technical colleges
and vocational schools, such as the IFTS
colleges located in the territories where we have our sites.
- ITS Foundations: in accordance with the Memorandum of Understanding signed in May 2018 with the MIUR, we have expanded our collaboration activities with the Higher Technical College (ITS) Foundations, thanks to our managers' teaching posts, company visits and internships for students. On this point, during 2019 we designed a new course with the Merchant Marine Academy for senior technicians for the supervision and installation of on-board systems. Further initiatives are being launched which will affect territories with a lower rate of development.
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WE TRAIN AND ENHANCE OUR PEOPLE WITH AN EYE ON EXCELLENCE
For us, the training and development of people are the two fundamental strategic levers of the Talent Management process, since, by facilitating growth from within, we make it possible for individuals to increase their skills, enhance their potential and professionalism and encourage their motivation and involvement.
Training
Also during 2019 the Group continued its policy of investing in training programmes aimed at improving the technical and professional know-how of its resources, ensuring effective monitoring of roles and encouraging the dissemination of cross- functional skills. Investments in training programmes amounted to euro 4.8 million, with an average of 29.7 hours of training per capita.
87% | EMPLOYEES |
TRAINED |
17,295
The training we offer is mainly based on 3 tools:
• FORmare catalogue: includes courses |
aimed at covering technical-specialist |
needs and developing professional know- |
how through training initiatives on the |
main specialized software and applications |
used in the Company, on processes, |
regulations and other activities involved |
in the development of the ship product |
and consolidating cross-functional skills related to innovation and change management, soft skills and knowledge of foreign languages.
-
Corporate University: this is Fincantieri's in-house management training school, which consists of technical-managerial training courses aimed at increasing employees' skills at various stages of individual development. Numerous editions of the Academy programme took place over the year. This programme is dedicated to young people who have recently
been hired by the Company and aims to encourage integration into the company environment, providing them with training on cross-functional issues and facilitate an aptitude to manage change.
OVER | ||
580,000 | 29.7 | |
HOURS | ||
OF TRAINING | ||
PROVIDED | ||
28.7 | AVERAGE HOURS | 36.6 |
MEN | OF TRAINING PER CAPITA | WOMEN |
15.8 | 39.0 | ||
9.5 | |||
MIDDLE MANAGERS | 20.3 | BLUE COLLAR EMPLOYEES | |
SENIOR MANAGERS | WHITE COLLAR EMPLOYEES | ||
The data refer to the entire Fincantieri Group.
The per capita hours are calculated as the ratio between hours provided to the whole workforce and the number of employees in service at the end of the year.
and maintenance of quality standards. In |
addition to technical training, the catalogue |
includes courses aimed at strengthening |
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PLAN
OBJECTIVE
COMPLETED
IN 2019
In line with the Sustainability Plan, and as part of the Corporate University's training programmes, we have introduced a module dedicated to sustainability issues. In 2019, 131 employees were trained on these issues.
-
Safety Academy: includes training courses on health, safety and the environment that the Company offers its employees as activities aimed at providing useful knowledge for identifying, reducing
and managing risks in the workplace. During 2019, training activities relating to environmental management were increased, with courses dedicated to specific professional figures such as energy managers and resources involved in managing environmental and safety certification systems.
Team building
During the year, we have proposed various team building activities with the aim,
on the one hand, of understanding the obstacles hindering team performance and identifying the most valid mechanisms
for bringing together, communicating and working synergistically among different generations and, on the other, working on trust/esteem to break down barriers and create a shared team identity, starting from the enhancement of individual peculiarities and pride linked to the sense of belonging to the Group. One of the most significant team building initiatives is the "Development Challenge", dedicated to young resources who have already completed the Academy course and continuing their training in order to reactivate group dynamics, and the "Effective Relationships" course, which is intended for production supervisors
and technical figures in the shipyard, as an opportunity to develop management and relational skills.
Evaluation processes
The assessment processes are based on the Company Skills Model which aims to enhance and encourage consistent behaviour at all levels of the organization and to develop the appropriate skills to deal with future challenges. This model includes skills related to "knowing", such as knowledge of corporate strategy and specialist and process know-how, "knowing how to do", such as the skills and abilities possessed and the experience gained, and "knowing how to be", namely those soft skills necessary to ensure appropriate interaction between the individual and the organizational context (leadership, teamwork, feedback, staff management). The evaluation processes in place at Fincantieri are structured in order to ensure
the most complete, objective and analytical view of the various dimensions under evaluation.
- Performance appraisal: a key tool in human capital development processes that aims to improve employees' performance through individual feedback that all employees, from workers to managers, receive at least once a year. This tool supports and directs meritocratic appraisals, helps customize the personal development processes and define the training offered in line with the skills gaps highlighted.
PERCENTAGE OF EMPLOYEES EVALUATED - 2019
Senior managers | 62% |
of which women | 69% |
Middle managers | 76% |
of which women | 72% |
White collar employees | 78% |
of which women | 74% |
Blue collar employees | 80% |
of which women | 88% |
Total | 79% |
of which women | 78% |
The data refer to the entire Fincantieri Group.
- 360° assessment: a tool intended for all
managers with at least five staff members. It aims to assess the typical skills of team managers, such as feedback, delegation, development of team members and recognition of others, and aims to provide the evaluator with a complete overview of the skills being evaluated by comparing
self-assessment and assessment by others. At the beginning of the year the Parent Company completed the 360° assessment process that had begun in 2018.
- Potential appraisal: aimed at a target group of resources determined by age, company seniority, role and qualification requirements. It takes the form of an assessment activity which, on the one hand, offers the possibility of highlighting, through feedback interviews, the strengths, areas of improvement and growth motivation and, on the other hand, makes it possible to structure an individual development plan in terms of short/ medium-term training activities, coaching, mentoring, career paths and job rotation.
People development
During 2019, people review activities, which are an active management tool used by the HR Department and managers to develop employees, played a key role in enhancing human capital and defining professional growth paths and succession plans. People review activities are launched from a synergistic work carried out every six months by the HR Department and by the business line and allow the population to be mapped using the data related to the performance appraisal, potential appraisal and the experience gained within the Company in a systematic and structured way. The strategic output that emerges from this mapping is the identification of high potential, namely those resources with greater potential and usefulness in the Company, on which to invest so that in the
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DIVERSITY AND INCLUSION AS AN ASSET
FINCANTIERI GROUP
future they can play key roles in driving the business. The ultimate goal of people review meetings is to plan the development actions necessary to accompany the growth of talent through a career path, with structured job rotations that provide for both horizontal and vertical growth, national and international mobility activities, training and mentoring that support the development of interpersonal skills and encourage the creation of a professional network, even outside the area in which the talent works. More specifically, there were 198 people involved in mobility processes in 2019.
We reject any form of discrimination based on ethnicity, colour, gender, age, disability, sexual orientation, religion, political opinion, nationality and social origin. We are committed to maintaining a work environment that is free from any and all forms of violence or harassment.
The Group has therefore adopted the Policy on Human Rights - Commitment for the Respect of Human Rights and Diversity, which reaffirms our commitment to protecting human rights and promoting diversity as strategic elements for the company's competitiveness and the development of our people. We operate
In order to enhance diversity and promote inclusion, in line with the existing regulatory framework for equal opportunities, we are committed to:
- creating an inclusive work environment that ensures respect, integrity, personal development and equal opportunities;
- increasing employee awareness of diversity and equal opportunities;
- encouraging the commitment of all Group employees to act with respect and integrity in every relationship;
- requiring suppliers to behave in a manner consistent with respect for human dignity.
The main issues on which the Company is determined to influence diversity and equal opportunities are represented by age diversity, to encourage generational exchange through the enhancement of young people and the recruitment of senior resources, gender diversity, with the aim of providing modern forms of work-life balance, and cultural diversity, to stimulate creativity and nurture an increasingly open corporate culture.
Once a year, in order to ensure effective oversight of key positions and allow for structured and organic reflection on the Group's managerial assets, succession plans for top management are updated to guarantee and safeguard continuity, stability and oversight of the business.
We have developed coaching in a more structured and widespread way to enhance management effectiveness. This is a voluntary development tool aimed at facilitating and supporting resources in becoming aware of themselves, their possibilities and potential, allowing them to plan development actions aimed at strengthening and consolidating their managerial skills.
with utmost respect for diversity and equal opportunities and we do not permit any kind of discrimination, from personnel selection and throughout the entire employment relationship. The change management path that characterizes the Fincantieri for the Future initiative is a pure expression
of how each person, regardless of gender, age or nationality, represents a source of "wealth" for the Company. The presence of different skills, experiences and cultures fuels the exchange of opinions, comparison and dialogue, promoting the growth of the organization, intellectual enrichment, innovation and the gradual development of an inclusive working environment.
EMPLOYEES BY AGE RANGE
≤ 30 YEARS | 30-50 YEARS | ≥ 50 YEARS | TOTAL | |||||
2018 | 2019 | 2018 | 2019 | 2018 | 2019 | 2018 | 2019 | |
Senior | 0 | 0 | 171 | 175 | 206 | 215 | 377 | 390 |
managers | ||||||||
Middle | 29 | 23 | 679 | 744 | 457 | 507 | 1,165 | 1,274 |
managers | ||||||||
White collar | 1,167 | 1,396 | 4,106 | 4,370 | 1,676 | 1,842 | 6,949 | 7,608 |
employees | ||||||||
Blue collar | 1,475 | 1,397 | 6,428 | 5,990 | 2,880 | 3,164 | 10,783 | 10,551 |
employees | ||||||||
Total | 2,671 | 2,816 | 11,384 | 11,279 | 5,219 | 5,728 | 19,274 | 19,823 |
% Incidence | 14% | 14% | 59% | 57% | 27% | 29% | 100% | 100% |
The data refer to the entire Fincantieri Group.
PERCENTAGE OF EMPLOYEES BY GENDERPERCENTAGE OF WOMEN ON THE BOARD
2018 | 2019 | 2018 | 2019 | ||||
Men | 16,889 | 88% | 17,214 | 87% | Women on the Board | 33% | 50% |
Women | 2,385 | 12% | 2,609 | 13% | |||
Total | 19,274 | 100% | 19,283 | 100% |
The data refer to the entire Fincantieri Group.
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OUR COMMITMENT TO HEALTH AND SAFETY
PERCENTAGE OF WOMEN BY CATEGORY OF THE CATEGORY TOTAL - 2019
TOTAL 13%
7% | 13% | 22% | 7% |
SENIOR | WHITE COLLAR | ||
MANAGERS | MIDDLE | EMPLOYEES | BLUE COLLAR |
MANAGERS | EMPLOYEES |
The data refer to the entire Fincantieri Group.
Safety at work, workers' health, the maintenance and improvement of work environments have always been our main drivers and the foundation of our policies, in a vision that considers safety a strategic and development factor for the Company.
The continued implementation of tools associated with the certification of the company's systems for managing health and safety at work, according to the requirements of OHSAS 18001/ISO 45001, has resulted in the broadening of
and envisages the participation of all the supervisors involved in processing and the workers' safety representatives.
Furthermore, the meetings of the Quality and Safety Committees are held periodically in each production unit. These committees, composed of the site Management and the people reporting to management, including the quality, health, safety and environment managers, have the aim of supervising and monitoring production processes during
PERCENTAGE OF WOMEN TRAINED OF TOTAL WOMEN - 2019
2,310
89%
WOMEN
TRAINED
The data refer to the entire Fincantieri Group.
We are constantly working to promote the insertion of people with different physical and psychological abilities, in line with the characteristics of shipbuilding and the risk profiles associated with the industry. 459 people with disabilities work in the Fincantieri Group.
The US companies, Fincantieri Marine Group and Fincantieri Marine Systems North America Inc., as in the past few years, have organized specific training activities aimed at creating greater awareness of and sensitivity to diversity issues.
the work population involved, facilitating dissemination of corporate culture growth paths.
This result is monitored through the systematic implementation of internal audits connected to the certification of management systems and it has been further supported by the various actions implemented as part of the Towards Zero Accidents project.
Towards Zero Accidents
their constant evolution and within their different complexities. In these committees, workers' requests and any critical elements that may have emerged during joint inspections of the operational areas or within the Commission for Safety and Environment have a prompt and timely response.
Similarly, in the United States, the Fincantieri Marine Group organizes monthly meetings between health & safety and environment managers and union representatives to analyse and share the results of accident analyses, performance indicators and the
Policy on Human Rights - Commitment for the respect of human rights and diversity www.fincantieri.com/globalassets/sostenibilita2/responsabilita- risorse-umane/diverita-e-pari-opportunita/fincantieri_policy_on_human_rights2.pdf
For several years the Towards Zero Accidents project has involved all the resources concerned with the Company's production process within a structured plan of initiatives and it has continued along its path of activities aimed at employees and suppliers and at contractors' employees.
To consolidate good practices and the constant monitoring of the production dynamics, coordination meetings on safety and the environment are organized which, scheduled at least every two weeks, are carried out directly in the production areas
main updates to the safety management system.
The trend in injury data and rates for employees and contractors is constantly monitored, both at company and site level, and a special monthly report informs Top Management, all employers and all the health and safety managers. Similarly, with the aim of involving and informing the entire company audience with view to prevention, the documented analyses of accidents and near misses at individual shipyards
are systematically shared in a particularly
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FINCANTIERI GROUP
detailed format, which is sent electronically. The same data, together with other health, safety and environmental (HSE) issues, are compared and examined at quarterly meetings involving all site managers on health and safety at work issues. In the same context, the corporate HR manager coordinates work to share best practices, raise issues of common interest and identify
measures, etc.). This type of risk, together with all the specific risks present in the workplace, is addressed in the safety courses for employees regardless of their position. The risk assessment process, in particular those related to health and safety at work, is the subject of specific company guidelines and subsequent operating procedures.
The US subsidiaries have maintained a high commitment to safety and the environment and have received numerous awards for excellence. In 2019, Fincantieri Marinette Marine won the Safety Excellence Award and the Safety Improvement Award, both recognized by the Shipbuilders Council of America. The National Safety Council has
also certified Fincantieri Marinette Marine for achieving one million consecutive hours worked without injury or illness. Fincantieri Ace Marine has developed and launched the SLAM (Stop, Look, Assess, Manage) programme that involves the employees and aims to promote a pro-active vision of health and safety in the workplace.
improvement proposals on which to involve and direct the Group's activities.
Particular importance is attached, within the mechanisms governing variable pay, to objectives related to health and safety at work and environmental issues. The company's best performance and sustainability improvement objectives are benchmarks used to monitor and stimulate the performance result and determine the related economic impact.
Evidence of work-related stress risk has been the subject of targeted pathways involving employees and workers' safety representatives in identifying possible sources of risk. Surveys and tests carried out individually and for homogeneous
The VARD subsidiary, similarly to Towards Zero Accidents, continues to implement its Vision Zero project, the results of which confirm a positive trend.
Further initiatives have been implemented with the aim of preventing any type of accident to people and the environment:
• using the Safety Observation tool to report |
any anomalies found; |
• reporting health and safety indicators at |
the monthly management meetings; |
• organization of an internal accident |
prevention week; |
• monthly discussions on health and safety |
(required by law in Brazil); |
• electing an internal commission for the |
prevention of accidents; |
MAIN HEALTH AND SAFETY INDICATORS | ||
2018 | 2019 | |
Rate of absenteeism | 3.6 | 3.7 |
Rate of recordable work-related injuries | 8.5 | 9.7 |
Rate of high-consequencework-related injuries | n.a.* | 0.1 |
Rate of fatalities as a result of work-related injury | 0 | 0 |
Number of injuries | 366 | 383 |
- of which work-related | 301 | 339 |
- of which high-consequencework-related | n.a.* | 3 |
- of which fatalities as a result of work-related | 1 | 0 |
- of which while travelling | 65 | 44 |
Number of injuries - women | 19 | 21 |
Number of training hours in health and safety | 152,791 | 186,958 |
Number of employees trained in health and safety | n.a.* | 14,362 |
Investments in health and safety (euros) | 7,077,620 | 5,877,467 |
*Data reported since 2019 as per 403 - Occupation health and safety GRI Standards 2018. The data refer to the entire Fincantieri Group.
groups allow the Company to acquire results and elements which are used to define, where necessary, appropriate initiatives with a view to reducing risk and promoting personal well-being (training, organizational
• the internal distribution, based on the |
Group's guidelines, of a booklet with the |
ten golden rules for health and safety at |
work. |
Together in Safety
The multimedia support Together in Safety is available in order to protect all the resources involved in the production process and promote correct behaviour, including from an environmental perspective, in all the Italian shipyards. This is a training video, with a duration of over three hours, aimed at employees of subcontractors (a user catchment of around 30,000 people), and it must be watched in the classroom when
people enter the Group's production sites for the first time.
The video is available in the 10 languages most used in Fincantieri's shipyards and customized to the logistics of each site in Italy. It provides information on each of the production units and on the work risks that characterize shipbuilding.
In Italy, the Active Safety project continues, on a regular basis, to provide training and information to all workers (direct employees
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FINCANTIERI GROUP
and employees of contractors) present at individual shipyards. During working hours and directly at the workplace, the individual supervisors explain the subject matter to their staff, who are given a leaflet. In 2019,
9 different editions were carried out with a duration of approximately 30 minutes each, which is in addition to the activities required by law.
Memorandum of understanding with INAIL
In April 2019, we signed with the National Institute for Insurance against Accidents at Work (INAIL) a memorandum of understanding aimed at developing a safety at work culture and at implementing activities and projects with the goal of consistently reducing accidents and occupational diseases. The MoU, which follows on from long-term cooperation, determines the scope and implementation methodologies of activities aimed at protecting workers' health and safety. In particular:
- production process analysis, with respect to the risks related to the shipbuilding industry and in particular those arising from interferences between the activities of internal and external resources;
- monitoring of the health and safety management ystem in place for contract work in the shipbuilding industry and its possible evolution;
- evolution analysis of accidents in the represented sectors, supplemented with a comparison of the data collected at European level;
- analysis of the current near miss model mapping (i.e. events which potentially can cause accidents) and its possible evolution;
- identification and implementation of new training and information initiatives aimed at promoting a culture of prevention, and innovative communication tools to strengthen workers' awareness of the risks in the production process and the appropriate safety measures.
Supplier evaluation
Safety, environmental and human rights issues are an integral part of the supplier evaluation process. Contractors are already subject to evaluation from a financial, quality, contractual and production perspective and they are assessed using a predefined format and scorecards focused on health, safety and environment issues. The assessments by the various shipyards have led to the calculation of the overall performances of the companies and are subject to permanent monitoring within Supplier Oversight.
Security
Owing to the more frequent and widespread presence of employees who travel or are on secondment abroad, with the Travel Security programme we have developed an ongoing mapping of risks in foreign countries to guarantee the security of travelling employees and the sustainability of the locations associated with business operations. Therefore, around 16,000 foreign travel routes are monitored.
PLAN
OBJECTIVE
COMPLETED
IN 2019
As required by the Sustainability Plan, through the activation of a Crisis Management system (abroad), 12 contingency plans have been drawn up and updated for the most important foreign sites and locations where the Company is present. The plans are managed by special crisis committees (CMTs) which include, in addition to employers, travellers and the relevant Health and Safety Department Managers, the heads of all functions involved in the travel and personnel management process. Each CMT, in accordance with corporate procedures, met at least twice
a year, to update team members on the
evolution of risks present in local scenarios and for training and education activities based on contingency plans. We also have a Virtual Crisis Management software platform, which allows committees to meet virtually to manage possible crisis situations even when on the move or when the Company is closed (at night or on holidays).
With reference to the security problems connected to the globalization of the business, mention should be made of the International Ship and Port Facility Security (ISPS) Code, Chapter XI-2 of the SOLAS Regulation developed by the International Marine Organization (IMO), a comprehensive set of rules to enhance ship and port facility security in order to mitigate the risk of acts of terrorism and other unlawful acts. On the basis of the types of ships interacting with the areas pertaining to Fincantieri, the relevant authority has determined its obligation for the Arsenale Triestino San Marco, Muggiano and Palermo shipyards, while considering the Monfalcone and Marghera shipyards
as occasional. The necessary professional figures have already been identified at these shipyards, and the planned activities and facilities have been implemented. Following on from our commitment to maintain an effective system of corporate governance and risk management, we have decided to launch a project to implement the ISPS Code, in order to adopt a methodology in line with the above-mentioned international best practices, to protect our assets as well as its ship product, also for the Ancona, Castellammare di Stabia, Genoa Sestri Ponente, Riva Trigoso shipyards and for the Trieste, Rome and Genoa offices.
134
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WELL-BEING FOR OUR PEOPLE
OHSAS 18001 / ISO 45001 and SA 8000 certifications
During 2019, we continued implementing and consolidating the occupational health and safety management systems in our operating units (65% of sites are certified), with the aim of supporting the implementation of the policy adopted by the Company.
In 2019, eight Italian sites completed the migration process to the new ISO 45001 standard and we plan to complete the transition of the remainder by 2020. In parallel, the surveillance activity by the accredited certification body to maintain the existing management systems continues. The Palermo shipyard has achieved the first OHSAS 18001 certification in accordance with the requirements of the reference standard while the subsidiary Isotta
Fraschini Motori has achieved the first ISO 45001 certification in accordance with the relevant requirements.
The US site of Fincantieri Marinette Marine, already previously certified in compliance with OHSAS 18001, has planned to migrate its health and safety at work management system to the ISO 45001 standard during 2020.
The VARD group maintained OHSAS 18001 certification for the Romanian Braila and Tulcea shipyards, as well as the Vietnamese Vung Tau shipyard.
All VARD shipyards are aligned with SA 8000 standards, which are based on the International Labour Organization (ILO) conventions and the Universal Declaration of Human Rights (Vung Tau is also certified).
For more information on the certified shipyards and companies, see the website www.fincantieri.com/en/sustainability/certifications
We have implemented a welfare model that is able to positively affect the welfare of our people and, at the same time, capture the most modern dynamics of the labour market and the business.
The welfare tools, defined with the corporate agreement in 2016, are aimed at employees in general of Fincantieri S.p.A., including part-time and fixed term employees, and are also recognized for the employees of Italian subsidiaries and/or associates falling under the application of the supplementary labour agreement.
Within the welfare system, the Social Bonus is particularly important because of its characteristics. The bonus is paid annually and exclusively in welfare services and any unused bonus amounts are automatically allocated to the individual employee's supplementary pension fund. To strengthen the connection between the achievement of production objectives and consolidation of the overall welfare system, employees who decide to convert variable bonuses into welfare are paid a further increase of 10% on the value converted. In 2019, 25% of the overall performance Bonus was converted into welfare services. For an employee to benefit from company welfare, we have a special portal through which the employee can access a wide range of goods and services. The most requested services were those intended for the family, in particular for the training of children and assistance to family members, together with welfare vouchers, which can be spent in establishments with which the employees themselves have often asked the Company to arrange special prices. The supplementary
pension and health programme, which are complementary to the measures already defined in terms of supplementary pensions and healthcare, the National Collective Bargaining Agreement (CCNL) and the company's supplementary labour agreement, were also highly appreciated. The portal also provides other categories of services such as training courses, travel and holidays, mortgage repayments, leisure, sport and wellness.
As regards welfare policies, particular attention has been paid to public transport and mobility issues, with an eye on sustainability. The employee can request the total or partial reimbursement of the ticket, such as the season ticket for the bus or train, for themselves and/or for their dependent family members.
Confirming the validity of the welfare model it has adopted, Fincantieri - having previously won the Welfare Awards 2018 for the best plan in application of the National Collective Bargaining Agreement for Steelworkers and for welfare policies aimed at blue collar employees - won the Welfare Award for the Best Welfare Network Plan 2019 due to the territorial extension of the welfare system.
Again with a view to generating positive repercussions in terms of environmental sustainability, during 2019 the promotion campaign for the use of corporate car pooling (namely two or more people sharing a private car for the commute to and from work) was implemented and provided for incentives and the recognition of bonuses. In order to respond to the growing need for work-life balance, we continued to
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FINCANTIERI GROUP
FINCANTIERI GROUP
test smart working for particular personal situations.
The Company's focus on work-life balance, which is already included in the National Collective Bargaining Agreement for steelworkers where a worker dealing with serious family situations can take a period of leave of absence of up to two years, has also been implemented indirectly with the involvement of company clubs, through initiatives that meet the employees' needs: special arrangements with day care centres, seaside or mountain resorts during the summer, daytime summer camps and after- school activities.
With regard to supplementary health care, since January 2018 the Company has been a member of the Health Fund for steelworkers, called "MètaSalute", with a supplementary health care plan for employees and dependent family members, also covered free of charge. Health services are provided both directly, through the facilities contracted by the operator and in the form of reimbursement.
The Fincantieri agreement on health care also confirmed the opportunity for pensioners, under the most favourable conditions, to continue to make use of the supplementary health care benefits with a contribution paid for by them.
Fincantieri Marine Group provides benefits to all employees working for at least 30 hours a week. Benefits include subscription to the Group Health Medical Plan, which covers various services: a medical coverage plan, a dental coverage plan and vision
coverage plan for eye health. The costs are borne partly by the Company and partly by the worker. Additional benefits are available that are not included in the above plans, such as the on-site clinic, vacation and holiday pay, the policy on short/long term disability, life insurance for accidental death
- dismemberment, the retirement plan and the employee assistance programme.
The VARD group provides its employees, using different methods depending on the location, with medical assistance, internal catering services, food cards, training incentives and support for transport to and from home.
Industrial relations
Industrial relations in Fincantieri are characterized by a participatory model that is developed through the activities of various commissions defined by the 2016 supplementary labour agreement, which in some cases, in addition to trade unions, include workers.
A strategically important body is the Advisory Committee, composed of
12 members, 6 of which are company representatives and 6 trade unions, which meets annually for information and consultation between the Parties on issues such as market scenarios and competitive positioning, economic performance, alliances and strategic partnerships, business strategies, technological innovations, safety at work, training and retraining, relations with educational institutions and/or universities,
and employment trends.
The Committee also meets when there are changes in the company and ownership structure, significant organizational changes, significant changes in labour policy, restructuring and/or reorganization projects and restructuring and development programmes.
In fact, any restructuring and/or reorganization processes provide for specific information procedures with the involvement of trade unions, in order to identify the most appropriate tools (e.g. early retirement, reduction of working hours, social shock absorbers, retraining, etc.) and their different structuring according to the different contexts.
The supplementary agreement also governs the operation of the Joint National Committee on Safety at Work and the Joint National Training Committee. Composed of 3 company representatives and 3 workers' representatives, these joint committees are responsible for analysing the characteristics and trends of the issues within internal evolution, verifying the consistency of
the initiatives implemented, proposing and evaluating new general or specialized initiatives, and evaluating and approving intervention plans.
Each company site has a Bilateral Joint Technical Body and a Committee on Safety and Environment. Their purpose is, by systematically involving all resources, to increase the motivation and participation of employees in the change and innovation
processes, combining the necessary increases in efficiency and productivity with the improvement of working conditions and the environment.
With regard to the subjective right to continuous training, Fincantieri operates in line with the provisions of the National Collective Bargaining Agreement signed in 2016, guaranteeing the possibility of participating, either directly or at the initiative of the Company, in training courses lasting at least 24 hours per person during the three years of the National Collective Bargaining Agreement.
This approach has provided yet more impetus to the training process, which is already effectively monitored, helping to further awareness of the need for companies and workers to invest in the continuous updating of skills and knowledge, identified as strategic factors when responding to technological, organizational and market changes.
In relation to the growing process of internationalization and with a view to encouraging the full involvement of Group workers, Fincantieri, together with the trade unions, is committed to setting up a special working group for the establishment of the European Works Council (EWC), the purpose of which will be to inform and consult the workers of EU-wide companies.
The current supplementary labour agreement will also be fully effective in 2020, since
the trade union agreement providing for its extension was signed in December 2019.
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FINCANTIERI GROUP
FINCANTIERI GROUP
Employees are guaranteed freedom of association throughout the Group. In 2019, 52% of employees are registered with trade unions.
The VARD group has established a model of industrial relations that is strongly oriented towards dialogue with trade unions in order to identify and provide impetus for the changes needed to ensure a stable and profitable future for the Company. During 2019, especially in the Norwegian shipyards, agreements and protocols were signed to define phases, rules and timing for the gradual cessation of VARD activities
Remuneration
€ 1 bln
PERSONNEL COSTS
The remuneration of employees (blue collar and white collar) is defined in relation to the relevant labour market and with the provisions of the collective bargaining agreements and company level contracts and consists of a fixed component and a variable component.
be provided not only in monetary form, but also in the form of welfare or non-monetary benefits.
PLAN
OBJECTIVE
COMPLETED
IN 2019
As set out in the Sustainability Plan, to promote a culture of sustainability in line with the Group's Values, sustainability objectives with a weight of no less than 10% up to a maximum of 30% have been included in the short-term variable remuneration system (MBO). In 2019, 13.3% of MBO Plan recipients received at least one sustainability target.
As regards remuneration between genders, the ratio of women's (basic and global) remuneration compared to men is given below.
at the Aukra and Brevik shipyards and to manage the personnel concerned through redeployments or support in the search for new opportunities. Trade union agreements have been signed at the VARD shipyards in Braila and Tulcea in Romania to improve productivity (reorganization of work programmes, shift changes, breaks), with the simultaneous introduction, in terms of pay, of a bonus system focused on results.
The fixed component remunerates the role and, specifically, the responsibilities assigned to each employee, taking account of, among other things, the level of experience, the quality of the contribution that each employee brings to the attainment of the business results, as well as the level of excellence with respect to the duties assigned and is sufficient to remunerate the services performed in the event of no payment or only partial payment of the variable components, where envisaged.
It is also such as to ensure a suitably competitive position with respect to the level of salary paid by the market for the specific position.
The variable component is linked to predetermined and measurable Group and individual performance objectives and remunerates, according to the different structures, the results achieved in the short and long term. The latter, moreover, focuses people's attention and commitment on the achievement of strategic objectives and can
RATIO BETWEEN WOMEN'S BASIC SALARY AND MEN'S | RATIO BETWEEN WOMEN'S GLOBAL REMUNERATION |
AVERAGE SALARY - 2019 | AND MEN'S AVERAGE REMUNERATION - 2019 |
WHITE | BLUE | WHITE | BLUE | ||||||
SENIOR | MIDDLE | COLLAR | COLLAR | SENIOR | MIDDLE | COLLAR | COLLAR | ||
MANAGERS MANAGERS EMPLOYEES EMPLOYEES | MANAGERS MANAGERS EMPLOYEES EMPLOYEES | ||||||||
Fincantieri | 1.0 | 0.9 | 0.9 | 0.9 | Fincantieri | 1.0 | 1.0 | 0.9 | 0.9 |
VARD group | 0.5 | 1.0 | 0.7 | 0.8 | VARD group | 0.5 | 1.0 | 0.7 | 0.8 |
Fincantieri | 1.4 | 0.9 | 0.8 | 0.9 | Fincantieri | 1.3 | 1.0 | 0.8 | 0.8 |
Marine Group | Marine Group | ||||||||
Fincantieri Marine | 0.0 | 0.8 | 0.9 | 0.8 | Fincantieri Marine | 0.0 | 0.7 | 0.8 | 0.6 |
Systems North | Systems North | ||||||||
America Inc. | America Inc. |
140 | 141 |
FINCANTIERI GROUP
WE LISTEN TO OUR PEOPLE
FINCANTIERI GROUP
We believe that dialogue and listening are essential for creating relationships based on trust and transparency, which is why we have developed the following listening initiatives over the years.
2016 As part of our development and improvement initiatives, we have launched the
Fincantieri for the Future project in Italy with the aim of developing and implementing
an organic path of management change at all levels, which is needed in order to best respond to current and future competitive challenges. The first step of the project saw the active engagement of and listening to workers through an anonymous questionnaire aimed at identifying the organizational climate, people's expectations and their suggestions.
2017 The results obtained from this first survey were the starting point for designing, planning
and implementing improvement actions in response to the objective evidence that emerged, the so-called "change shipyards". With the aim of promoting the exchange of opinions, confrontation and dialogue, considered fundamental tools for the growth of people and the organization as a whole, we shared the results that emerged and the contents of the "change shipyards" launched during dedicated meetings held in all production units, divisions, departments and Italian subsidiaries, which involved more than 6,500 resources. Using the same procedure as the first step, a monitoring process was
set up to review the new change initiatives and collect people's suggestions, with a view to continuous improvement through a new survey that recorded a higher response rate than the previous year (+7%).
2018 The evidence that emerged, including the growing awareness of the need
for change and how it is a living and vital process within the Company, as well as a strong and increased pride in working at Fincantieri, was shared during 2018 in meetings with employees, who were able to actively participate in the project also through a direct dialogue with management. An external eyewitness attended the meetings and brought practical examples of the connection between values and behaviour in the world of work. After this meeting, various working groups were established aimed at defining the Group Conduct Agreement, which translates the corporate values, defined during the first stage of the project, into actual behaviours that can be observed and translated into everyday life.
Again with the aim of "putting people at the core", disseminating the culture, corporate values and all the initiatives launched as part of the change management project, we set up a network of internal facilitators, Group employees who, owing to their personality, aptitude and natural inclination, can facilitate the change process, stimulate everyday participation at all levels, leveraging on formal and informal occasions, with the aim of making everyone aware that they each can and must be an active part in the change.
2019 The project was given a green perspective with the
launch of Fincantieri for
the Green Future, a new initiative that aims to raise awareness and bring employees closer to environmental issues, making them protagonists of a path of continuous improvement. Fincantieri for the Green Future is a call to action, an invitation and an incentive to make a tangible contribution to environmental protection with virtuous behaviour, small daily actions, simple gestures and attention to waste, starting with greater awareness and sensitivity to environmental sustainability in the Company. With the aim of promoting environmental sustainability not only as an opportunity, but as a real mission, the second edition
of FincantieriON will be launched in 2020. The initiative, aimed at all employees, aims to promote the collection of innovative ideas that may suggest the introduction of materials, system and organizational solutions and, more generally, a process of change that can bring about continuous improvement within the Company with a view to sustainability so that the resource exploitation, technological development and investment management are increasingly compatible with protecting the environment and the creation of long-term value.
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FINCANTIERI GROUP | FINCANTIERI GROUP |
FOR THE COMMUNITY
We are committed to dialoguing with and supporting communities through a number of initiatives with the aim of advancing the principles of a healthy, resilient and sustainable society for everyone
In accordance with the Sustainability Plan, a Fincantieri Group Policy on initiatives for the Community and Territory has been drawn up in which:
We direct our activities in line with our values, mission and vision by carefully assessing the context, needs and requirements of the territories in which we are present.
We support and involve local communities through initiatives, donations, gifts and investments aimed at responding to the needs most felt by communities by becoming an active part of the social and economic development of the territory.
PLAN
OBJECTIVE
COMPLETED
IN 2019
- 2.4 mln
FOR THE COMMUNITY
In 2019, at Group level we allocated approximately euro 2.4 million to initiatives in favour of the community.
- the Group is committed to dialoguing with and supporting local communities as stated in its Code of Conduct and Charter of Sustainability Commitments;
- are contained the lines of action on which the community support strategy is based;
- the path of active participation that the Group has undertaken towards the communities and territories on which it is present is fully expressed.
The document is approved by the Board of Directors of Fincantieri S.p.A.
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FINCANTIERI GROUP
OUR LINES OF ACTION
Fostering employment and integration,
also by promoting educational and training programs
FINCANTIERI GROUP
Fostering employment and integration, including through the promotion of educational and training programmes
Our goal is to:
- facilitate the matching of labour supply and demand;
- activate a virtuous circle and an ever closer bond with local communities;
- create opportunities for growth and enhance the skills of people and businesses.
Raising awareness about climate changes and environmental impacts
OUR LINES OF ACTION
Strengthening Group identity and the sense of belonging among employees and with the community
We are committed to creating a pool of suitably trained personnel to stimulate the Fincantieri system, particularly with reference to the supply chain, in order to cope with workloads.
With this in mind we are developing, together with regional and municipal administrations, several initiatives, such as specific pre-employment courses and recruitment days, in which the satellite businesses took part in the search for specialized personnel. These initiatives involved, as a priority, unemployed people or non-workers as a result of businesses that suffered economic crisis in the territory.
Ensuring health protection | Promoting activities aimed at |
preserving and enhancing artistic, | |
and promoting research | |
historic and cultural heritage | |
We work continuously to promote the Professional Training System related to the maritime economy by participating in Higher Technical Colleges (ITS) and Higher Technical Education (IFTS).
Supporting the underprivileged | Supporting scientific research |
and technological innovation | |
STRADAMICA
Project organized by the Prefecture of Gorizia and aimed at high school students in the province in order to make young people aware of road safety.
PESCHIERE | MUNICIPALITY OF |
UNIVERSITY STUDENT | MONFALCONE |
ACCOMMODATION | Coverage of school fees |
FOUNDATION (Genoa) | for some children at the |
A charitable trust that | Monfalcone nursery school. |
pursues educational and | Contribution to the |
research aims. It provides | renovation project of a |
training, research, study | building in Monfalcone to be |
orientation and volunteer | used as a nursery school. |
activities and awards | |
More details on the initiative are | |
scholarships to particularly | |
described on p. 66. | |
deserving students with | |
limited economic resources. |
EDUCATIONAL AND TRAINING PROGRAMMES
- Career Day for the unemployed/non-workers.
- Orientation activities with colleges.
- Pre-employmentcourses to train the unemployed/non-workers on critical professional skills and two-yearpost-diploma specialization (ITS).
• Targeted actions for staff made redundant due to companies in economic crisis.
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FINCANTIERI GROUP
Strengthening the Group's identity and sense of belonging with employees and with communities
In our shipyards (in Italy, Norway, Romania and the United States), we organize many events that are an important opportunity for us to open our doors to the employees and communities in the territory and promote awareness of the Company and its values.
FAMILY DAY / WORKERS VISIT | BIMBI A BORDO (CHILDREN ON BOARD) | |
Through these initiatives in | Events dedicated to all the children of employees from | |
Italy alone around 19,000 | Fincantieri and the external companies aged between 4 and | |
people, both employees and | 10, allowing them to board and see the ship built by their | |
workers in satellite businesses, | family members. | |
were able to spend a few | In Italy alone, around 3,600 children aged between 4 and 10, | |
hours in the shipyards with | accompanied by 1,800 adults, participated in this initiative. | |
their families and, where | ||
possible, visit with the ships. | ||
OPEN SHIPYARDS | COMPANY CLUBS | |
Several shipyards open their | In 2019, more than 16,000 registered members benefited | |
doors to school children | from the activities of the 9 company clubs at national level, | |
and university students and | of which approximately 8,000 were current and former | |
groups to show and explain | Fincantieri employees. | |
the naval production process. | The premises of the company clubs, the staff in charge of | |
the administrative management and the economic resources | ||
UNIONE FINCANTIERI | ||
necessary for their maintenance are predominantly provided | ||
MONFALCONE | by Fincantieri. | |
Supporting the youth football | ||
team Unione Fincantieri | ||
Calcio Monfalcone, which | ||
bears the Company's name. |
FINCANTIERI GROUP
Promoting cultural activities to protect and enhance artistic, historic and cultural heritage
Culture can drive growth in the territory. We want to contribute to the attractiveness of local territories and increase their development opportunities by recovering and enhancing artistic and historical peculiarities and supporting cultural initiatives.
GIUSEPPE VERDI OPERA | CAMPIELLO FOUNDATION | MUCA - MONFALCONE | |
HOUSE FOUNDATION | Sponsor of the 57th edition | SHIPBUILDING MUSEUM | |
Supporting the activities of | of the Campiello Literary | Collaboration with MuCa | |
the Giuseppe Verdi Opera | Prize. | - Monfalcone Shipbuilding | |
House Foundation in Trieste | Museum - through the | ||
entrusted the tasks of | Fincantieri Foundation. | ||
conservation, enhancement | |||
and promotion of opera and | |||
symphonic music. | |||
LINK - PREMIO LUCHETTA | CULTURAL EVENTS | ||
INCONTRA MARCO LUCHETTA | • Partnership in "GEOgraphies, write the Earth, read the |
INTERNATIONAL JOURNALISM Earth", the literary festival held in the Municipality of
PRIZE | Monfalcone. |
Festival of good journalism | • Sponsorship in Pordenone Legge. |
consisting of interviews, | |
BARCOLANA | |
presentations dedicated to | |
new publications and talks | Participation and local identity are pivotal elements of the |
with leading figures in the | Barcolana, an international sailing regatta held in Trieste, |
news. | which, in 2019, held 400 events over 10 days. |
Over 15,000 admissions at | |
thirty events over three days. |
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FINCANTIERI GROUP
Fincantieri Foundation
Fincantieri Foundation (www.fondazionefincantieri.it) supports the corporate culture in a continuous, organic and authoritative way, and is a link with the social fabric and it establishes a socially responsible, equitable and virtuous relationship with local territories.
During 2019, the Foundation carried out numerous activities:
Contribution to the organization of the exhibition "From | The restoration and display |
Julius Caesar to Leonardo da Vinci" held by the Municipality | of the historical model of the |
of Monfalcone in the MuCa and in the Contemporary Art | Vulcania motorboat. |
Gallery. |
FINCANTIERI GROUP
Supporting the vulnerable
Support to people in difficulty and the promotion of volunteer initiatives for disadvantaged communities is an issue that we feel strongly about and we translate this feeling into practical help through numerous initiatives.
RICREARTI ASSOCIATION | NOIHANDIAMO ASSOCIATION | ANDREA DORIA INSTITUTE |
A recovery and job | Partnership in the LaMaxGua | Support for welfare activities |
placement project | project, which aims to make | aimed at the families of |
for unemployed or | a boat safely accessible to | soldiers currently in service |
disadvantaged people that | people with severe mobility | or who have served in the |
makes gadgets by reusing | limitations. | Italian Navy and who are in a |
Digitization of the Marghera shipyard's photographic archive (around 2,300 digitally reproduced photos) and implementation activities in the Palermo archive.
Assistance to students, associations and public entities with regard to historical research on the shipbuilding world and on Fincantieri's activities in the archives of Monfalcone and Muggiano.
Fincantieri's promotional | particularly difficult economic | |
materials otherwise destined | situation. | |
for disposal. | ||
FOOD BANK | ||
In 2019, 1,600 art shopping | ||
bags and 2,000 key rings | Agreements with the Food Bank and the companies that | |
were created for Fincantieri. | provide catering services to collect unconsumed food | |
in canteens and redistribute it to those bodies providing | ||
GOFFREDO DE BANFIELD | ||
assistance and help to people in need. |
ASSOCIATION
More details on the initiative are described on p. 67.
Supporting scientific research and technological innovation
We support scientific research and technological innovation for a sustainable future. With this objective we promote and support multiple activities aimed at spreading a culture of technological innovation and research and the realization of scientific projects with the contribution of scholars and experts.
PARTICIPATION IN EVENTS / CONFERENCES | COOPERATION PROTOCOLS |
• Trieste Next - Festival of Scientific Research. | Projects for teaching and |
• Science Festival in Genoa. | research activities, internships |
• SUPEHR 2019 (SUstainable PolyEnergy generation and | and doctorates with: |
HaRvesting) future technologies for sustainable energy | • Universities; |
generation. | • Business Schools; |
• Colleges. |
150
Support for the elderly who are not self-sufficient with staff made up mostly of volunteers.
151
FINCANTIERI GROUP
FINCANTIERI GROUP
Protecting health and promoting research
Our contribution primarily consists of initiatives to support the medical-scientific sector or to support the sick. We are convinced that it is only through scientific research that we can improve people's quality of life and prospects, because health protection is an ethical and social value of primary importance.
ITALIAN RED CROSS | PESCHIERE UNIVERSITY | FRIENDS OF THE HEART |
Support to the Hospitality | STUDENT ACCOMMODATION | ASSOCIATION |
Centre of the Italian Red | FOUNDATION | Creation of a multimedia |
Cross in Genoa, which | Award of scholarships | laboratory at the Maggiore |
hosts families and children | to particularly deserving | Hospital in Trieste used |
under treatment in the | students with limited | by researchers from the |
oncology and haematology | economic resources. | Cardiovascular Centre, |
departments of the Gaslini | the Friuli Venezia Giulia | |
Institute. | Regional Cardiovascular | |
Observatory and the | ||
Interuniversity Consortium | ||
Healthcare Research & | ||
Pharmacoepidemiology. |
Raising awareness on climate change issues and environmental impacts
Respect for the environment, for local territories and for each individual with whom we share areas and activities, is an essential prerequisite to ensure the continuity and growth of our Group over time, to the benefit of future generations.
WE DIALOGUE WITH COMMUNITIES AND INSTITUTIONS
Our structure and international presence throughout the world brings with it dialogue with very different realities and requires that we have in-depth knowledge of the territory and the needs of stakeholders with the aim of effectively responding to demands and define priorities.
The relationship and dialogue with local communities is managed internally at Parent Company level through the Central and Local Administration Relations function. This function represents:
- our direct line with Institutions and Public Administrations and we use it to channel all the requests from and to local areas;
- the Fincantieri Group and all our associates
before Parliament, the Government and national institutions whose actions could have a direct or indirect impact on society, through symmetrical relations with its counterparties.
Our approach is aimed at transparency by representing the interests of the Group, as a whole, and in full institutional respect for the roles of our counterparties.
We have built a process based on mutual trust, presenting the Company's perspective before public decision-makers, supporting our arguments, also through the preparation of position papers always supported by a legal/regulatory and scientific foundation.
FINCANTIERI FOR THE GREEN FUTURE Communication campaign aimed at creating greater awareness and sensitivity on environmental issues and encouraging all employees to make a tangible contribution to safeguarding the environment.
More details on the initiative are described on p. 160.
OUR FUTURE TAKES ROOT Participation in the fundraising for the reforestation of the mountain areas in Friuli Venezia Giulia after the Vaia storm.
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FINCANTIERI FOR THE ENVIRONMENT
- TO REDUCE OUR IMPACT
- TO PROMOTE SUSTAINABILITY
154 | 155 |
FINCANTIERI GROUP | FINCANTIERI GROUP |
TO REDUCE OUR IMPACT
We want to play an active role towards a more sustainable economy and society. We are committed to monitoring and reducing our direct impacts and contributing to limiting global warming with our greener ships, a responsible supply chain and by engaging in dialogue and collaboration with agencies and institutions
We want to reduce our environmental impact through responsible resource management and sustainable patterns of production and consumption, protecting the biodiversity of the territories where we operate.
OUR COMMITMENTS TOWARDS AN ECO-SUSTAINABLE ECONOMY
TO REDUCE DIRECT IMPACT
Therefore, we look for options that allow us to reduce the direct impact of our operations and the indirect impact associated with the value chain that characterizes our business.
OBJECTIVE
In a world where natural resources are, by their very nature, limited, where people are highly mobile and that is subject to climate change, companies are called on to implement appropriate mitigation and adaptation methods in order to address these phenomena and create value in the long term.
The aspects linked to climate change are both
a source of risk and an opportunity. For this reason, we seek to monitor them constantly and to analyse them with the dual purpose of, on the one hand, identifying all the risks for which it is appropriate to adopt mitigation and/or adaptation measures and, on the other, exploiting opportunities to develop the business and improve efficiency.
-
Action to raise energy efficiency and reduce
carbon dioxide (CO2) and other pollutant emissions - Conservation of natural resources, biodiversity, and reduction of environmental impact
- Increase employee awareness of environmental impact and promote virtuous behaviour
- 20% reduction of Scope 2 GHG emissions by 2020
- ISO 50001 - Energy Management System certification
- Increase the portion of electricity from renewable sources
- Awareness campaign
TO REDUCE INDIRECT IMPACT
- Development of ecologically sustainable products and services with the aim of contributing to a circular and low carbon economy
- Promotion and support of a responsible and sustainable supply chain that shares our values and is based on long-lasting relationships founded on integrity, transparency and respect
OBJECTIVE
- Development of technological solutions that enable energy savings to be increased for ships with the same features (green ships)
- Definition of an eco-design to promote the development of environmentally sustainable ships
TO HELP COMBAT CLIMATE CHANGE
- Support for research to improve the analysis and management of risks associated with climate change
OBJECTIVE
- Research projects to develop new solutions for energy savings or reduction of emissions in collaboration with research institutes / universities on issues associated with climate risks
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FINCANTIERI GROUP
OUR MANAGEMENT SYSTEM
FINCANTIERI GROUP
We are committed to reducing our direct impact by reducing consumption and waste produced, and prioritizing the use of eco- sustainable resources, such as certified energy from renewable sources.
We want to represent a model of excellence also in terms of maximum environmental protection and we see the environmental management system as the tool for implementing and monitoring the actions taken to carry out the commitments made. The Company's Policies relating to the environment, health and safety at work were updated and integrated in 2019.
Compliance with international, national and local legislative provisions in force on this subject
COMPLYING
WITH LEGISLATIVE
PROVISIONS
Continuous improvement of environmental and health and safety performance promoted through the development of policies, guidelines and the adoption of management systems certified in accordance with
the regulations and reference standards adopted
IMPROVING
CONTINUOUSLY
As far as environmental protection is concerned, the commitments undertaken in the new Environment, Health and Safety Policy are:
• assess the risks and environmental |
impact of its activities and manage the |
environmental aspects using the principles |
of precaution and prevention; |
• promote the use of the best available |
technologies and the use of products with |
a lower environmental impact; |
• implement improvement plans aimed at |
containing and reducing its emissions to |
air, water and soil, the continuous efficiency |
of the Company's energy performance |
including through the use of energy from |
PROMOTING
AWARENESS
OF EMPLOYEES
AND SUPPLIERS
Involvement and promotion of employee and supplier awareness in the process of protecting the environment and health and safety at work
PRINCIPLES OF THE
ENVIRONMENT,
HEALTH AND SAFETY
POLICY
MEETING
STAKEHOLDERS'
EXPECTATIONS
Meeting stakeholder expectations and the formal obligations undertaken by Fincantieri as
a fundamental prerequisite for the creation of value and the promotion of sustainable development
renewable sources, and the minimization |
and proper management of waste; |
• safeguard the natural value and |
biodiversity of the territories affected by |
the presence of its sites by implementing |
appropriate environmental measures and |
protections; |
• design and develop eco-sustainable |
products. |
The Environment, Health and Safety Policy is available on the website www.fincantieri.com/globalassets/sostenibilita2/politica_ambiente_salute_e_sicurezza_sul_lavoro_en.pdf
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FINCANTIERI GROUP
FINCANTIERI GROUP
We are committed to implementing and maintaining our management systems in particular; all the production sites of Fincantieri S.p.A., the US Marinette site, as well as the Braila and Tulcea shipyards in Romania and Vung Tau in Vietnam of the VARD group are certified ISO 14001:2015.
Environmental audits are carried out regularly in all the sites by the specific internal structures and all the reports of any environmental accidents are collected and managed systematically.
The individual certified sites adopt specific site policies consistent with the guidelines defined at company level. The latter are binding for all Fincantieri employees and are shared with all suppliers through frequent coordination activities.
For more information on the certified shipyards and companies, see the website www.fincantieri.com/en/sustainability/certifications
As part of the management systems, the individual production units plan specific training/information activities on environmental issues on an annual basis, based on identified needs, to increase the level of knowledge and raise awareness of their employees on individual issues.
During 2019, in accordance with the objective of the Sustainability Plan, we committed ourselves to spreading and promoting the culture of environmental sustainability by launching a communication campaign (for a "sustainable" office), within the Fincantieri for the Green Future project, that is focused on promoting virtuous and eco-sustainable behaviour.
The objectives of the campaign are to:
- consolidate the culture of sustainability and the virtuous path that the Group has undertaken in terms of environmental protection, giving practical form to the objectives published in the Sustainability Plan;
- disseminate projects and strategies aimed at reducing environmental impact to all stakeholders by first involving employees, but also suppliers, in the sustainability path;
- create greater awareness and sensitivity in order to encourage all employees to make a tangible contribution to safeguarding the environment with virtuous behaviours in day-to-day life, both at work and at home.
The campaign was launched by distributing a brochure to all employees that illustrates the virtuous behaviour to be adopted in
Environmental aspects
We are bound by laws and regulations to protect the environment and people's health which impose limits on atmospheric emissions, discharges into water and soil and set rules for the treatment of hazardous waste and the reclamation of any polluted sites.
No significant environmental accidents occurred in the Group's production sites in 2019.
Energy
The Parent Company produces an energy diagnosis each year (in 2019 with reference to consumption in 2018), in compliance with the regulatory requirements of Legislative Decree 102/2014, aimed at identifying inefficiencies and implementing an annual programme to modernize the plants, including through the implementation of new technologies capable of guaranteeing ever better performance in terms of energy efficiency.
ENERGY CONSUMPTION
To make the quality of data acquired more reliable and identify the consequent improvement actions, the installation of more advanced measurement systems has continued, giving priority to those for the most significant energy consumption and which are more easily dealt with from a performance perspective. The process of improving the energy efficiency of lighting systems, carried out with the gradual installation of solutions based on LED technology, continued. During 2019, this intervention involved the Castellammare di Stabia, Monfalcone, Palermo and Sestri Ponente shipyards in Italy, the Braila shipyard in Romania, the Marinette shipyard in the United States and the subsidiary Isotta Fraschini Motori's production site in Bari.
The good results from the Ancona shipyard regarding the experimental introduction of a remote control and automatic shutdown system for the mobile welding fume extractors has validated the initiative, which is expected to be implemented in 2020
at the Marghera, Monfalcone and Sestri Ponente shipyards.
PLAN
OBJECTIVE
COMPLETED
IN 2019
everyday life, both in the workplace and at home, and with the symbolic distribution of a gadget (an aluminium water bottle to encourage people to reduce their plastic consumption).
The subsidiary Insis has also promoted an internal campaign on lighting management and a policy on reusing materials.
2018 | 2019 | |
ELECTRICITY | ELECTRICITY | |
48% | 50% | |
TOTAL | TOTAL | |
2,620,706 | -1.5% | 2,580,329 |
GJ | GJ | |
FUEL | FUEL | |
52% | 50% |
The data refer to the entire Fincantieri Group.
160 | 161 |
FINCANTIERI GROUP
FINCANTIERI GROUP
As per the objective of the Sustainability Plan, we are committed to increasing the share of electricity from renewable sources. In 2019, about 50% of the electricity needed to satisfy the demand of Italian production sites and companies was purchased
and sourced from renewable sources (hydroelectric, wind, photovoltaic) certified with Guarantees of Origin (GO). Taking also into account the contribution of the subsidiary VARD in relation to its Norwegian sites, 40% of the electricity consumed by the entire Group comes from renewable sources.
In addition to the actions undertaken in previous years and during 2019, we have included in our Sustainability Plan the objective of obtaining ISO 50001:2018 certification for the Energy Management System of Fincantieri S.p.A. by 2021. With this in mind, a gap analysis was carried out in 2019 with the aim of assessing the current energy management system against the requirements of the standard and consequently identifying the activities needed in order to obtain certification. The activity involved representatives of the main organizational units concerned with the
The main initiatives implemented concern leakage tests and repairs to distribution networks, implementation of more efficient gasification systems for the technical gas tanks, and installation of timed mixers in changing rooms.
Fincantieri Marine Group has also implemented systematic network leakage monitoring activities, which have led to
WATER WITHDRAWAL
a significant reduction in drinking water consumption.
72% of the water is taken from the municipal/ state water supplies, 27% from the ground water and 1% from the sea, there are no other types of withdrawal. Water withdrawals are mainly used in the production and sanitation process.
In other countries the purchase and production of energy from renewable sources was not significant for reporting purposes.
ELECTRICITY
FROM RENEWABLE SOURCES
40%
60%
FROM NON-RENEWABLE SOURCES
The data refer to the entire Fincantieri Group.
certification process, who will subsequently play an active role in maintaining it. The process of identifying and formalizing specific working groups (Energy Team) has been initiated and more than 50 people throughout the Company are expected to be involved.
Water
Water is a precious natural resource whose availability is increasingly limited owing to climate change. Safeguarding it is one of the main commitments in our Policy and is also one of the aims of the communication/ awareness project, aimed at promoting virtuous and eco-sustainableday-to-day behaviour.
We take measures to improve efficiency in the use and quality of water as part of our environmental management systems at the level of individual shipyards. We monitor water consumption during the production cycle, planning and implementing system interventions aimed at saving water resources.
2018 | GROUND WATER | GROUND WATER | 2019 |
1,074,901 | 841,577 | ||
m3 | m3 |
TOTAL | -1,7% | TOTAL |
3,144,856 | 3,092,190 | |
m3 | m3 | |
STATE/MUNICIPAL | STATE/MUNICIPAL | |
WATER SUPPLIES | WATER SUPPLIES | |
2,069,955 | 2,218,301 | |
m3 | m3 | |
SEA |
32,312
m3
The data refer to the entire Fincantieri Group.
162 | 163 |
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FINCANTIERI GROUP
Water discharges and heavy metals
As regards water discharges, in accordance with the authorization profiles of the different production sites, sampling and laboratory analysis are conducted regularly to monitor the quality of the discharges and guarantee that the limits laid down by the law for analytes (heavy metals in particular) which are subject to monitoring.
With a view to continuous improvement, we are revising the current plant layouts at the various production sites, while new and technologically more advanced solutions are already being implemented.
automation;
- steel, iron, plastics and other iron and non- iron alloys for the piping installed on board;
- welding materials;
- paint products.
In line with the contents of the Policy regarding the use of chemical products, the supply choices, where there are equivalent technical characteristics and/or compatible performance, have been oriented towards products with a lower environmental impact. For the most commonly used paint products in shipbuilding, joint initiatives have been carried out with the major suppliers on the market to identify low-solvent or water- based alternatives.
Most of the materials used for the hull are ferrous and are therefore by their nature reusable. Steel is a 100% recyclable material and it can be recycled countless times without losing any of its original properties. This product is therefore never consumed, but continuously transformed through recycling processes that make it a permanent material, a concept underpinning the circular economy.
WASTE BY TYPE
Waste
The criteria identified for managing processing residues and waste disposal are included in the guidelines revised in 2019, which provide for the development of a production unit procedure to manage the site's specificities.
Waste produced by our activities is delivered to authorized sites according to its classification and, in line with the policies adopted by the Group, recovery destinations are favoured and maximized.
Raw materials
Procurement of raw materials has a strategic role for the Company.
In recent years we have given more significance to the selection of materials in order to reduce their environmental impact as much as possible.
As best described in the section on eco- design, even while preparing specific contractual techniques, and consequently those needed for the procurement process, we work to identify materials for the interiors that, though possessing the same technical, qualitative and compliance characteristics, are also environmentally compatible.
The main raw materials present in the production cycle are:
- iron for the hull;
- copper for the electric wiring and
RAW MATERIALS
MEASUREMENT | 2018 | 2019 | |
UNIT | |||
Carbon | t | 19,252* | 24,345 |
dioxide | |||
Argon | m3 | 822,757* | 1,122,444 |
Nitrogen | m3 | 557,401 | 599,937 |
Ferrous | t | 136,022 | 144,426 |
Oxygen | m3 | 6,529,773* | 7,056,615 |
Paints | l | 2,345,228* | 2,812,032 |
10%
*The data for 2018 have been revised for comparison purposes following the inclusion of data for the VARD group.
The data refer to the entire Fincantieri Group, except for the procurement of ferrous materials and nitrogen which concern Fincantieri S.p.A. and Fincantieri Marine Group.
2018 | NON HAZARDOUS |
192,752 t | |
91% | 9% |
HAZARDOUS | |
18,921 t |
TOTAL 211,673 t
WASTE BY DISPOSAL METHOD
2018 | RECOVERY |
160,503 t | |
76% | |
24% | DISPOSAL |
51,170 t | |
TOTAL 211,673 t |
The data refer to the entire Fincantieri Group.
2019 | NON HAZARDOUS | |
171,801 t | ||
89% | 11% | |
HAZARDOUS | ||
20,766 t |
TOTAL 192,567 t
2019 | RECOVERY | |
152,228 t | ||
79% | ||
21% | DISPOSAL | |
40,339 t |
TOTAL 192,567 t
164 | 165 |
FINCANTIERI GROUP
FINCANTIERI GROUP
In Italian sites the overall percentage of waste sent for recovery over 2019 was about 75%.
The VARD group identifies the optimization of recovery activities as a priority: in 2019, waste sent for recovery amounted to about 90% of the total waste produced.
In the United States, Fincantieri Marine Group has specific waste management policies and procedures and aims to continuously improve its waste management processes. In 2019, thanks to the activities implemented, the total waste produced had fallen by 67% and 56% had been sent to recovery.
Corporate mobility
Through corporate and local initiatives, we promote a model of sustainable mobility management that concretely affects
the reduction of greenhouse gas (GHG) emissions, leading to a change in established habits with a greener perspective.
PLAN
for home/work journeys by sharing the use of personal cars. The system makes it easy to for employees to get in touch with each other, certify the results in terms of energy and environmental savings and access a reward system that encourages participation in the initiative and helps to change established habits. In parallel, an option
is being tested in the same digital system to certify home/work journeys by bicycle and on foot, and here too access a reward system.
In 2019, the use of the car pooling service certified a saving of 327,000 kilometres travelled, corresponding to 42,683 kg of carbon dioxide.
With the same aim, we have completed the installation of electrical charging points at all production sites and their use has been made available to employees.
The agreement with the provider of welfare services allows for the reimbursement of season tickets issued for use on public transport.
kilometres, distributed as follows:
CORPORATE MOBILITY - 2019
PLANE | |
57,659,128 km | |
85% | TRAIN |
4% | 2,543,409 km |
11% | CAR |
7,407,443 km | |
TOTAL 67,609,980 km |
The data refer to the entire Fincantieri Group.
With regard to the fleet of company cars for personal and business use, the gradual replacement of current vehicles with hybrid vehicles is planned, as is already the case with service vehicles.
In the United States Fincantieri Marinette Marine has implemented a car pooling policy. In the same vein and with the same purpose, as an alternative to using cars, areas have been made available to park bikes and, at the same time, the use of company vehicles inside the shipyards has been limited.
SCOPE 1 AND SCOPE 2 GHG EMISSIONS
Greenhouse gas emissions
OVER | TOTAL EMISSIONS |
830,000 | |
from Scope 1-2-3 | |
tCO2e | |
-1% compared | |
to 2018 |
In 2019, our total greenhouse gas (GHG) emissions from direct emissions from sources owned by or under the control of the Group (Scope 1), indirect emissions from electricity consumption (Scope 2) and other indirect emission (Scope 3) amounted to 834,632 tonnes of carbon dioxide equivalent (tCO2e) compared to 839,725 tCO2e in 2018. All our initiatives are aimed at reducing our emissions and our commitment to the fight against climate change is confirmed by the inclusion in the Sustainability Plan of the objective to reduce indirect (Scope 2) emissions by 20% by 2020 compared to 2017.
OBJECTIVE
COMPLETED
IN 2019
As envisaged in the Sustainability Plan, 2019 was the year of the launch of the company digital car pooling service in Fincantieri S.p.A. and in the Group's Italian subsidiaries. This service is designed to provide and encourage an alternative sustainable solution
Company policy promotes the use of public transport for work journeys whenever this is possible and does not create excessive difficulties for travel, thus avoiding recourse to car use. We are also investing in new technologies to reduce employees' travel for work, promoting the use of video and teleconferencing.
In 2019, the Group's employees made business trips totalling over 67.6 million
2018 | 99,817 | DIRECT EMISSIONS | 96,610 | 2019 |
(SCOPE 1) | ||||
tCO2e | -3.2% | tCO2e | ||
TOTAL | TOTALE | |||
203,183 | -16.6% | 169,535 | ||
tCO2e | tCO2e | |||
103,366 | INDIRECT EMISSIONS | 72,925 | ||
tCO2e | (SCOPE 2) | tCO2e | ||
-29.4% | ||||
The data refer to the entire Fincantieri Group.
166 | 167 |
FINCANTIERI GROUP
FINCANTIERI GROUP
Our energy efficiency measures and the increased use of energy from renewable sources (40%) have led to a significant reduction in indirect emissions from electricity consumption.
Total Scope 1 and Scope 2 GHG emissions over hours worked amounted to 0.005 tCO2e with a reduction of 16% compared to 2018.
The Company monitors GHG emissions with the aim of continuously improving performance in terms of impact.
The new 50/60 Hz frequency conversion systems to supply ships became fully operational at the Sestri Ponente shipyard, while at the Ancona shipyard an additional frequency conversion system was added to
service the new outfitting quay.
We should also mention the conversion of thermal power stations fuelled with low sulphur content (BTZ) and diesel fuel into thermal power stations fuelled with liquefied natural gas (LNG), also carried out at the Ancona shipyard, which has led to a significant reduction in carbon dioxide (CO2) emissions.
In 2019, we have further expanded the reporting of other (Scope 3) emissions that refer to the procurement chain for raw materials, employee travel, and consumption of raw materials which are the cause of the different breakdown and increase
in emissions. For comparison purposes between the two years, we have also expanded and revised 2018.
As regards the optimization of material logistics, in Italy the project to centralize delivery planning (Control Tower), launched in 2014, has the goal of managing the shipyards' delivery requests in order to reduce transport costs, improve reliability and timeliness of deliveries and reduce environmental impact. In particular, this project has enabled polluting emissions to be reduced by:
- planning deliveries using the outgoing and return formula;
- increasing vehicle saturation (combing multiple delivery requests into a single carrier).
The project led to the reduction of 1,300 journeys in 2019 (corresponding to 383,300 km) and a reduction of 256 t of CO2, equal to the average CO2 absorbed in one year by around 43 hectares of forest.
Other emissions of polluting gases
The conversion of all the heating networks in the Italian shipyards has led to the elimination of heavy combustibles and the introduction of methane systems, resulting in negligible sulphur oxide (SOx) emissions. VARD and Fincantieri Marine Group have also significantly reduced (-92%) SOx emissions, which amounted to 0.74 t in 2018 and 0.06 t in 2019.
The Group's emissions of nitrogen oxides (NOx), associated solely with natural gas combustion, in 2018 amounted to 24.5 tNOx and in 2019 24.7 tNOx.
With a view to continuous improvement, the VARD group is focused on researching new approaches to contain and minimize the impact of emissions resulting from industrial activities. The group's commitment is also demonstrated by its participation, since 2008, in the Confederation of Norwegian
SCOPE 3 GHG EMISSIONS
2018 | 2019 |
RAW MATERIAL | RAW MATERIAL |
CONSUMPTION | CONSUMPTION |
93% | 95% |
EMPLOYEE MOBILITY | EMPLOYEE MOBILITY |
1% | 1% |
WASTE DISPOSAL | WASTE DISPOSAL |
4% | 3% |
RAW MATERIAL | RAW MATERIAL |
PROCUREMENT CHAIN | PROCUREMENT CHAIN |
2% | 1% |
TOTAL 636,542 tCO2e | TOTAL 665,098 tCO2e |
The 2018 data have been revised for comparison purposes following improvement of the identification and measurement of raw material consumption by the VARD group and the procurement of materials by Fincantieri Marine Group.
The data refer to the entire Fincantieri Group, except for the procurement of raw materials which concerns Fincantieri S.p.A. and Fincantieri Marine Group.
168 | 169 |
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WE INVEST FOR THE ENVIRONMENT
Enterprises' NOx-Fund, whose primary | ENVIRONMENTAL |
objective is to reduce emissions of NOx. | INVESTMENTS |
€ | 10.5 mln |
WE PROTECT BIODIVERSITY
We promote the efficient use of natural resources and the protection of biodiversity, identifying potential impacts and mitigation
Fincantieri's production sites are individually subject to environmental permits that prescribe specific limits on the maximum consumption and total emissions of volatile organic compounds (VOCs) into the atmosphere. Compliance with these limits is pursued, even when production volumes are increasing, by planning a gradual replacement of the products used with alternatives with a lower solvent content and by adopting appropriate system measures to reduce emissions. These include the installation of new sandblasting and painting facilities and, most recently, the one that has been operational since 2017 at the Monfalcone shipyard that is equipped with a post-combustion system and allows the elimination of VOCs emitted during processing.
VOC emissions relating to Fincantieri S.p.A.'s production units, in proportion to the production volume, have improved significantly since 2017.
OTHER EMISSIONS OF POLLUTING GASES
To conserve resources in 2019, we have invested 10.5 million euros in environmental protection, around 33% more than in 2018.
Fincantieri S.p.A. has for years been committed to implementing measures aimed at continuously improving the impact on
all environmental compartments. The main ones involved the systems for collecting and treating rainwater, noise containment measures related to production and systems for extracting and treating welding fumes and new system measures for sandblasting and painting.
These latter work primarily involved the Monfalcone shipyard, in line with the improvement programme set up with the issue of the Integrated Environmental Authorization.
On the other hand, at the Muggiano, Riva Trigoso and Palermo shipyards, work was carried out on the extraction and treatment systems for welding fumes.
actions, since safeguarding the natural value of the areas surrounding the shipyards, where the Company's production is located, is of primary importance for Fincantieri.
To protect these places, specific and special precautions are put in place in accordance with local legislation and activities that could directly or indirectly concern the protected area are carefully monitored.
The production sites in Muggiano (surface area of 147,000 m2), Riva Trigoso (surface area 173,000 m2) and Sestri Ponente (surface area 237,500 m2) are inside an International Marine Protected Area - Marine Mammal Sanctuary, which was established with the intent to safeguard various kinds of marine life.
The production site at Marghera (surface area 370,000 m2), which is on the Venetian lagoon, is also considered part of the UNESCO site - Venice and its Lagoon.
In the United States Fincantieri Marinette Marine is positioned next to the Menomonee, in Wisconsin (for a surface area of 21,315 m2). The river in question is an area to be
MEASUREMENT
UNIT
SOx t
NOx t
VOC t
2018 | 2019 | In the field of runoff water management, |
works were carried out to upgrade the |
0.74 0.06 rainwater collection systems in the quayside area in Sestri Ponente and to optimize the first
rainwater treatment plants in the Marghera | ||
24.5 | 24.7 | and Palermo shipyards are particularly |
important. Finally, the Arsenale Triestino San | ||
Marco has completed construction of the | ||
505 | 595 | runoff water collection system and has agreed |
with the operator to feed it into a special | ||
network for subsequent treatment. |
protected, especially due to the quality of the waters, the marshland and the ecosystem of aquatic flora and fauna. As regards the VARD group, the Tulcea shipyard, in Romania (for a surface area of about 750,000 m2), is adjacent to the Danube Delta, an area protected by UNESCO. The ISO 14001 certification, obtained in 2012, certifies the presence of the protections required to safeguard the site.
VARD Promar, in Brazil, occupies a surface area of about 800,000 m2 and part of it (250,000 m2) is adjacent to the mangrove forest, considered by WWF to be a biome, that is, one of the fourteen major types of habitat into which the Earth is divided. Also in this case, specific and special precautions are put in place in accordance with local legislation.
170 | 171 |
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TO PROMOTE SUSTAINABILITY
FINCANTIERI GROUP
As part of our activities, we act to raise awareness about issues related to environmental risks and to encourage eco-sustainable behaviour
Energy saving and reduction of emissions
Lower values of the index correspond to greater energy efficiency. Regulations
The Group's activities also have an indirect impact on the environment, in particular through our products, the supply chain and our partnerships.
OUR EVER GREENER SHIPS
Cruise ships
The International Convention for the Prevention of Pollution from Ships (MARPOL) aims to prevent and minimize pollution from ships, both accidental pollution and pollution resulting from routine operations. The MARPOL Annex VI sets out the rules for calculating and verifying compliance with the limits set for the energy efficiency of ships (Energy Efficiency Design Index - EEDI).
EEDI FOR CRUISE SHIPS
impose a decrease in values over time. In several cases, the ships built by Fincantieri anticipate the EEDI values, which are expected to be applied from 2025 onwards. The EEDI scores obtained by Fincantieri's cruise ships delivered in the last 5 years with respect to the provisions of the regulations on the index values, represented as time phase curves, are given below.
The world of navigation, whether cruise, merchant or naval, is going through a process of evolution under the principles of sustainability and the circular economy. For Fincantieri, this scenario is already a consolidated reality and with our projects we are literally redesigning the future scenario of navigation, at a strategic and technological level. The ships under construction will be increasingly resemble a large, hyper-connected, energy self- sufficient, lighter and green or hybrid propellant floating city, capable of recycling up to 90% of the waste produced.
With the technologies already applied today we are able to cut 1,200 tons of fuel per year on a ship of about 130 thousand GRT (gross registered tonnage).
The cruise ship industry is highly committed to adopting policies to minimize environmental impact, this is a joint effort implemented by cruise lines and shipbuilders.
The regulatory framework, with regulations at a global and local level, requires a rapid reduction of emissions into the air and water. The reduction of environmental impact has become one of the most important drivers for design and innovation in the field of cruise ships.
Our ships represent a technological benchmark at the European and global level. They feature the most advanced technologies, with technical solutions that provide energy savings, emission reduction, high performance and high quality.
In particular, we follow all the international best practices to minimize a ship's environmental impact throughout its entire life cycle.
19 | ||||||||||
17 | ||||||||||
xnm) | 15 | |||||||||
Ship 1 | ||||||||||
/GRT | ||||||||||
PHASE 0 | ||||||||||
2 | ||||||||||
(gCO | 13 | Ship 2 | PHASE 1 | |||||||
line | Ship 3 | |||||||||
Reference | ||||||||||
11 | Ship 4 | PHASE 2 | ||||||||
Ship 6 | ||||||||||
Ship 5 | ||||||||||
Ship 7 Ship8 | ||||||||||
9 | PHASE 3 | |||||||||
Ship 9 | ||||||||||
7 | ||||||||||
5 | 15 | 35 | 55 | 75 | 95 | 115 | 135 | 155 | 175 | |
Gross Tonnage (x1000) | ||||||||||
- Phase 0-1 Jan. 13/31 Dec. 14 | - Phase 1-1 Jan. 15/31 Dec. 19 | - Phase 2-1 Jan. 20/31 Dec. 24 | - Phase 3-1 Jan. 25/going forward |
172 | 173 |
FINCANTIERI GROUP
FINCANTIERI GROUP
In particular, we have validated and applied on our ships a series of initiatives, included in the company's "Eco-sustainable Design"
SOME ENERGY SAVING SOLUTIONS
procedure, that are also aimed at energy saving and reducing air pollution.
REDUCED CONSUMPTION PER SHIP
BY CA 130,000 GRT (t FUEL/YEAR)
SOLUTIONS TO REDUCE HARMFUL AIR EMISSIONS
PURIFICATION OF EXHAUST FUMES
NOX reduction: Catalytic muffler, in which the nitrogen oxides are
NO made to react with urea in a high- X temperature process, obtaining pure
nitrogen (N2) and water vapour
SOX reduction: Scrubbers, i.e. fume SOX scrubbers
LNG/DUAL FUEL PROPULSION
NOX and SOX reduction: solutions for future new builds
EMISSION IMPACT BY TYPE OF POWER SUPPLY
EMISSIONS (DIESEL CYCLE)
Reduction of harmful air emissions
MARPOL also requires a progressive reduction in emissions of harmful gases, in particular sulphur oxides (SOx) and nitrogen oxides (NOx). The constraints are growing over time, and they are particularly stringent in Emission Control Areas (ECA), which broadly identify
% SOX EMISSIONS
4.5 | ||||
3.5 | WORLD | |||
- 67% | - 78% | - 71% | - 97% | - 86% |
the most vulnerable ecosystems, where the most stringent values for reducing harmful emissions are applied, and which coincide with the main operating areas of the cruise industry. European legislation (Directive 2012/33/EU) sets further emission limits, particularly in port areas, due to their proximity to intensely inhabited areas.
% NOx EMISSIONS
NOX | I | II | III | NOX |
g/kWh | 45.n-0.2 | 44.n-0.23 | 9.n-0.2 | g/kWh |
n= engine's rated speed
17.0
Outside ECA-NOX
14.4
Fincantieri already built a special LNG- powered ferry for Canada in the past and in 2019 it received orders for prototype "dual- fuel" cruise ships primarily powered by LNG:
• Tui Cruises (joint venture between TUI |
AG and Royal Caribbean Cruises) |
finalized the order of two new-generation |
cruise ships with a gross tonnage of |
approximately 161,000 and primarily |
powered by LNG. Energy efficiency is one |
of the features of the project, with the dual |
objective of containing consumption under |
operation and minimizing environmental |
impact; |
• Princess Cruises, the Carnival group brand, |
finalized the order for the construction |
of two cruise ships with a gross tonnage |
Another solution for reducing emissions is to build electric or hybrid vessels. The Norwegian subsidiary VARD has contracts and offers for various small/medium-sized vessels equipped with electric batteries to cover all or part of the energy requirements.
• VARD is delivering two ferries to the |
Norwegian operator Torghatten Nord and |
a dual-powered electric hybrid cruise ship |
with icebreaker features, equipped with |
high capacity batteries and LNG storage on |
board; |
• VARD will deliver the first electric self- |
driving container ship in 2020. It will |
gradually reduce human intervention over |
the two years from delivery until reaching |
complete autonomy in 2022. The 80-metre |
1.5
1.0ECA
0.5
0.1EU, in Ports
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
9.8
Inside ECA-NOX
2000 | 2011 | 2016 |
Ship construction date |
7.7
3.4
2.0
of 175,000. The vessels will house |
approximately 4,300 passengers and will |
be based on a new-generation project, |
becoming the first of the Princess Cruises |
fleet to be powered mainly by LNG. |
by 15-metre vessel will operate in Norway, |
guaranteeing a transport capacity of 120 |
TEU, replacing 40,000 TIR journeys a year. |
The vessel will reduce nitrogen oxide (NOx) |
and carbon dioxide (CO2) emissions and |
The currently most common configuration | Another method which is gradually being |
for emissions reduction is based on latest | established is the substitution of traditional |
generation diesel engines combined with the | fuels with liquefied natural gas (LNG) in |
installation of fume purification systems in the | view of the indisputable benefits in terms of |
exhaust systems. | emission impact. |
improve road safety in a highly populated |
urban area. |
174 | 175 |
FINCANTIERI GROUP
FINCANTIERI GROUP
However, there are critical issues related to the new technologies. In general, the new technological solutions and systems introduced for the protection of the environment occupy volumes previously intended for the payload. In the case of LNG, accommodating the tanks on board (in addition to the liquid fuel tanks) and installing the related operating and safety systems entails a significant reduction of the useful space on board. The development of a logistics system capable of ensuring the availability of LNG (including intermediate storage and bunkering systems) in all major cruise destinations is still at an embryonic stage, consequently limiting the area of operation on new ships.
USE OF BATTERY MODULES
The future lies in the application of fuel cells, electrochemical conversion devices that generate electricity and heat by combining a fuel (typically hydrogen, methanol or methane) and a comburent (oxygen), in the absence of combustion. In this way, no polluting substances are actually produced. After the initial development phase, linked to space exploration and the naval field (submarines), terrestrial applications for the generation of electricity and propulsion (for example prototype trains fuelled by fuel cells) are spreading. Studies and research are being carried out on their application for generating energy for cruise ships.
In collaboration with the Consiglio Nazionale delle Ricerche (CNR, National Research Council) and the Universities of Genoa, Naples and Palermo, with the contribution of the Italian Ministry of Economic Development, we have developed a project to realize a laboratory ship approximately
25 metres long to study power generation technologies with low environmental impact.
The boat, called Zeus, will be powered by electric propulsion engines, which will be powered by a fuel cell system of about 120 kW and a battery system capable of ensuring around 6 hours' navigation autonomy at zero emissions, thanks to about 50 kg
of hydrogen contained in metal hydride cylinders. Zeus will be the first marine vessel powered exclusively by fuel cells.
To cover the | Supplementation of the electric |
entire load on | power supplied by the batteries with |
board | a traditional generation system (as in |
hybrid cars). | |
The energy supplied by the batteries | |
is used: | |
• exclusively in particular situations | |
(for example in port), or | |
• supplemented by the on-board | |
diesel engines at times of | |
maximum power demand (e.g. | |
maximum speed navigation). |
Treatment and storage of solid and liquid waste
Waste treatment is regulated by MARPOL:
- Annex I Prevention of pollution by oil and oily water.
- Annex IV Prevention of pollution by sewage.
- Annex V Prevention of pollution by shipboard waste.
The increasingly stringent regulations in force in areas with a strong cruise vocation and vulnerable ecosystems, such as Alaska and the Baltic Sea, determine the characteristics of the latest generation cruise ships.
Only bacteriologically and chemically pure water, with an extremely low hydrocarbon content, can be discharged into the sea (under certain conditions) in these areas. Any other residue must be stored on board and unloaded in port for further treatment.
176 | 177 |
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FINCANTIERI GROUP
The processes for treating, sorting and disposing of the waste produced on board are shown in the diagram below.
WASTE TREATMENT
SOLID WASTE
- collection, dehumidification, kitchen waste treatment;
- sorting and recycling of hotel waste;
- compaction and/or incineration (where permitted) of solid waste;
- pelletizing, storage of waste for subsequent unloading in port.
LIQUID WASTE
- physical and biological treatment (in line with the best land standards) of all on-board wastewater (sewage, grey water, kitchen effluents and laundries);
- storage of purified water;
- thickening and drying of residual sludge for subsequent unloading in port.
Naval vessels
The naval vessel construction business is strongly influenced by the continual demand to increase efficiency standards in the international defense segment and is one of the most demanding challenges. We are a reference player for many Navies and we face tough challenges with our consolidated experience in the design sector; since 1990, Fincantieri has delivered over 100 naval vessels to ten different nations.
Its consolidated experience has enabled it to combine the development of platforms with high operational performance with
submarines, studies are underway for the use of fuel cells on naval vessels.
Energy saving and reduction of emissions
This issue is dealt with by introducing energy savings criteria developed mainly in ship architecture, namely by selecting endothermic engines (both propulsion engines and power generation engines) with appropriate technological solutions and by selecting high energy efficiency materials or materials with high efficiency heat transfer.
Ballast water treatment
The ballast water treatment regulations, International Convention for the Control and Management of Ships' Ballast Water and Sediments (BWM 2004), require ships to sterilize ballast water before discharging it, to avoid contamination with species from different ecosystems.
BALLAST WATER TREATMENT
Latest generation of ballast water treatment systems, based on the pre-filtering of plankton and subsequent sterilization with ultraviolet rays.
Although the disposal of materials at the end of the ship's operational life is not part of the ship's construction activities because it is managed directly by the shipowners, cruise ships built by Fincantieri have voluntary certifications such as Green Passport, Clean Ship or Eco (the name of the certification
is different depending on the classification society). These certifications include our commitment to provide, on delivery of the ship, the list of hazardous materials in accordance with the Hong Kong Convention for the safe and environmentally friendly recycling of ships, adopted by IMO's MEPC 197 (62). The classification society will carry out periodic audits throughout the life of the ship to ensure compliance with environmental standards and maintenance of its environmental certification.
the development of solutions aimed at containing environmental impacts.
Thanks to the adoption of an eco-sustainable design process and the increased sensitivity towards ecological issues shown by Navies, we have been able to operate in many fields, adopting solutions aimed at reducing environmental impact. We have collaborated with the Italian Navy for many years, focusing on environmental impact issues right from the preliminary project. The new vessels, some of which are already in service, feature design choices aimed at containing environmental impact in terms of emissions to air, fuel consumption, wastewater treatment, use of special treatments to preserve the hull and the possibility, for certain vessels to be delivered shortly, to contain an area of sea that is polluted, with the possibility of collecting and storing the pollutants on board.
As regards power generation, building on more than ten years of experience of
AREAS OF | EMISSIONS REDUCTION OF NAVAL | |
INTERVENTION TO | FIGHTING VESSELS WITH A | |
REDUCE EMISSIONS | DISPLACEMENT FROM 6,000 TONS (*) | |
CO2 [t/YEAR] | NOX [t/YEAR] | |
Optimization of hull lines | ||
Introduction of LED lights | ||
Painting of | ~ 2,000 | ~ 40 |
superstructures with low | ||
sun absorption paints |
Optimized insulation of internal areas
* Use profile: 50,000 nautical miles/year.
On the other hand, the special characteristics of naval vessels and the consequent system solutions optimized to deliver mission performance currently do not enable the introduction of energy recovery systems.
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FINCANTIERI GROUP
Treatment and storage of liquid and solid waste
The technological solutions adopted for the treatment of solid waste are entrusted to the converters. The use of these machines enables waste to be dried and sterilized. The reduction in volume and weight and subsequent automatic vacuum storage allow on-board retention to be increased. The modern converters adopted enable a volume reduction of 70% and weight reduction of 30%.
kept under control, guaranteeing a maximum concentration of 15 ppm.
As regards end of life, all naval vessels are also delivered with a Green Passport. This document is the inventory of materials to be monitored during the ship's life cycle and it is used to ensure that it is scrapped safely and in an environmentally friendly way.
Eco-sustainable design
to monitor the product's environmental sustainability trends over time.
The foundation of the entire process of eco-sustainable design lies in the ability to contain and improve the environmental
FINCANTIERI
impact during the entire life cycle of the product: from technical design development to the choice of systems and materials, from procurement to construction, from its management in operation to disposal at its end of life.
For liquid waste, we have adopted technological solutions that are in line with the international regulations already used for merchant vessels:
- IMO MEPC 227 (62) for grey water and sewage treatment.
- IMO MEPC 107 (49) for bilge water treatment.
PLAN
OBJECTIVE
COMPLETED
IN 2019
SPECIFICATIONS | DESIGN | PURCHASING | CONSTRUCTION | TESTING | OPERATION |
DELIVERY | |||||
CUSTOMER | CUSTOMER |
Grey water and sewage are collected into appropriate physical and chemical treatment units which macerate the suspended solids and reduce the contents of the Total Suspended Solids (TSS), Biochemical Oxygen Demand (BOD) and Chemical Oxygen Demand (COD) using aerobic processes. The process also envisages disinfection using UV systems.
The systems adopted are able to achieve BOD values of 25 mg/l and COD values of 125 mg/l. Bilge water is treated using units that separate the pollutants caused by accidental spills.
The system is based on physical processes for viscosity reduction and then absorption using coalescent filters. Separation enables the level of pollutants in the treated water to be
In line with the Environmental Policy guidelines and the objectives of the Sustainability Plan, the design process has been revised with reference to the basic principles and logic of eco-sustainable design and the related requirements have been incorporated into a specific procedure.
As part of this, and with reference to the different environmental aspects, we have defined criteria to enhance internally the technological solutions adopted for each ship built. This approach makes it possible to compare the different constructions and
Identifying solutions that reduce energy consumption, atmospheric emissions, waste production and improve the environmental impact of the production process and materials used, taking as reference similar products as well as "best in class", therefore benefits the entire context (population and surrounding area) in which the individual production site is located.
The design choices made in relation to managing the ship during its operation and its performance, in addition to seeking to contain consumption and minimize the impact
on the environment, have the additional purpose of making work easier and making the hospitality provided on board more comfortable.
Finally, it should be stressed that sustainability assessments are also taken into account with regard to decommissioning activities, helping to guide choices on materials, components and systems with characteristics that limit the environmental impact of the dismantling and disposal operations at the end of
the product's life, which remain the sole responsibility of the shipowner.
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FINCANTIERI GROUP
WE RAISE OUR PARTNERS' AWARENESS OF
ECO-SUSTAINABILITY
FINCANTIERI GROUP
TOGETHER FOR A MORE SUSTAINABLE
ENVIRONMENT
We ask our suppliers to share our approach to sustainability in order to achieve one of our most important corporate objectives: having a responsible and sustainable supply chain.
We want to represent a model of excellence also in terms of environmental protection and this is why we have a binding environmental policy for all our employees and for all external companies operating in our production sites. We are committed to the implementation and maintenance of an Environmental Management System at our sites and obtaining ISO 14001 certification for most of them. We expect all our suppliers to align themselves with this approach,
sharing principles and commitments on environmental protection, with the common goal of achieving a sustainable supply chain while minimizing environmental impact. For this reason we have adopted the Suppliers' Code of Ethics that includes among its pillars the protection of and respect for the environment. Suppliers are asked
to share the principles contained in the document with their employees, subsidiaries, collaborators and subcontractors, with a view to encouraging virtuous behaviour throughout the supply chain.
For more information on the supply chain, please refer to the chapter "For a sustainable supply chain".
Respect for the environment, for local territories and for the people with whom we share areas and activities are essential elements in order to ensure the continuity and growth of our Group over time and to the benefit of future generations.
Therefore, we are directly involved in the development of international regulations and we conduct our business in close collaboration with the flag agency, classification societies, the sector's industrial associations, shipping companies and the main international research bodies.
PLAN
OBJECTIVE
COMPLETED
IN 2019
Research plays a particularly important role in the fight against climate change. Therefore, the Sustainability Plan includes a specific objective that provides for the activation of partnerships with universities/research institutes in order to develop new solutions for energy efficiency or reduction of greenhouse gas emissions. In particular, a project was launched in 2019 to study proposals for regulations allowing the use of fuel cells on board ships, with particular focus on passenger ships. Fincantieri also presented a project proposal called GreenCruise to the Italian Ministry for Economic Development to study and develop prototypes of power generation solutions using alternative fuels (e.g. LNG and fuel cells). This second project is awaiting evaluation by
the Ministry's technical experts.
As part of our Research and Innovation projects, we have launched several initiatives within the framework of European collaborations to study strategies to reduce the environmental impact of our products, in particular, with reference to the initiatives underway to contribute to the SDG 14 objective - life below water, studies are being carried out to reduce underwater noise caused by our products, even though there are no strict regulations on this issue.
An agreement was signed between Fincantieri, Eni, Cassa Depositi e Prestiti, and Terna with the aim of developing energy systems with reduced environmental impact. Experimentation of a system that uses wave motion to produce electricity is part of this approach.
We also believe in the value of transparency in reporting and we are guiding change in this direction. As proof of this, in 2016 we joined the CDP Climate Change Programme, a prestigious British organization whose goal is to improve the management of environmental risks by leveraging information transparency. The programme asks the world's largest companies from all sectors to participate
in an annual survey of their approach to managing their environmental risks and of the results they achieved. The extensive database resulting from this survey is made available to stakeholders.
In 2019, the Fincantieri Group obtained the
B rating, on a scale ranging from the minimum D to the maximum A, which testifies to the effectiveness of the actions it has taken in the fight against climate change.
For more information on our collaborations, please refer to the chapter "For innovation".
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ANNEXES
- METHODOLOGICAL NOTE
- DESCRIPTION OF MATERIAL TOPICS
- GLOBAL COMPACT RECONCILIATION TABLE
- GRI CONTENT INDEX
- INDEPENDENT AUDITORS' REPORT ON THE CONSOLIDATED NON-FINANCIAL STATEMENT
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FINCANTIERI GROUP
METHODOLOGICAL NOTE
FINCANTIERI GROUP
The third Sustainability Report of the Fincantieri Group, approved by the Board of Directors on 1 April 2020, is a communication tool that describes, in a transparent and structured manner, the economic, social and environmental results achieved, and demonstrates the Group's commitment to sustainable development, with the aim of creating value not only for the Company, but also for its stakeholders.
The Report represents the Consolidated Non-Financial Statement of the Fincantieri Group prepared in accordance with Articles 3 and 4 of Legislative Decree No. 254/16, with reference to the 2019 financial year (from 1 January to 31 December 2019). This document reports, to the extent necessary to ensure an understanding of the activities of the company, its progress, its results and its impact, in relation to the areas considered important and required by Article 3 of the Decree.
As required by Article 5 of the Decree this document is a distinct report with the appropriate wording to identify it as the Consolidated Non-Financial Disclosure (NFD) required by the regulation.
The contents of the Report have been prepared in accordance with the Global Reporting Initiative's (GRI) Sustainability Reporting Standards of 2016, with the exception of the GRI 303 - Water and Effluents and GRI 403 - Occupational Health and Safety indicators which implement the GRI 2018 Standard. The Report has been prepared in accordance with GRI Standards: Core option.
For further detail on the information required by the Standards and the indicators reported, please refer to the table shown in the annex to this document.
Sustainability reporting is preceded annually by the analysis and identification of material topics (materiality matrix page 26), i.e. those which reflect the significant impacts for the organization from an economic, social and environmental viewpoint, and which substantially influence stakeholders' assessments and decisions, and by the mapping and risk management methods. As required by the Decree, for each theme evidence is given on its materiality in relation to Group's activities, the risks connected with it, the Company's policies and commitments and the results obtained and monitored using ad hoc indicators capable of representing the results in terms of management.
With reference to the requirements of Article 3, paragraph 2 of Legislative Decree 254/16, some information not considered relevant for an understanding of the company, its progress, results and impact has been excluded.
Fincantieri defined its Sustainability Plan, approved by the Board of Directors, which is aligned to the 2018-2022 Business Plan and highlights and strengthens the intention to be a responsible Group. The Plan addresses some global challenges (such as the UN's Sustainability Development Goals) and details the commitments undertaken by the Group and breaks them down into qualitative and quantitative targets that can be measured over time and subjects them to constant monitoring.
In 2019, the Fincantieri Group decided to join the Global Compact, the initiative to promote and disseminate sustainable development practices launched and sponsored by the United Nations, and has therefore committed itself to integrating the ten principles relating to human rights, labour rights, environmental protection and combating corruption into its policies, strategies and activities.
The Sustainability Report represents the Communication on Progress (COP) related to the activity carried out in 2019. In particular, a table has been prepared (see appendix), which summarises the actions taken and the results achieved in relation to each of the above principles and references the pages of the Sustainability Report where these topics are discussed in greater detail.
The process of collecting data and information and drafting the Report is coordinated
and managed by the Sustainability unit, in cooperation with the multifunctional Working Group. The Report's contents have been defined according to the principles of accuracy, balance, clarity, comparability, reliability and timeliness.
The Sustainability Report has been prepared in accordance with a specific internal procedure that defines the roles, responsibilities and operating methods that Fincantieri S.p.A.'s and subsidiaries' staff must follow in order to guarantee the proper management of all the data required to prepare the document.
The reporting process is based on the current information systems used by the main company units are have been integrated using specific data collection sheets and supported by operating manuals in which the methods for collecting the indicators have been defined. The data were processed and validated also by the various function managers.
To enable data and information comparability over time and assess the Group's performance, comparison with the previous year is given where possible. Furthermore, in order to correctly show performance and guarantee the reliability of the data, the use of estimates was limited to the minimum possible and, if present, these are based on the best methods available and appropriately described.
The document seeks to present the positive and negative aspects in an equal light and, where considered appropriate, a comment on the results has been provided. The economic values are expressed in euros (thousands and/ or millions of euros). Sometimes the data are rounded to one decimal point or to a round number, and therefore their sum may not coincide exactly with the total value.
The reporting boundary of the data presented in the Report relates to the companies
fully consolidated (using the line-by-line method) in the consolidation area used for the consolidated financial statements. Any limitations to the reporting boundary specified above or clarifications concerning
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FINCANTIERI GROUP
FINCANTIERI GROUP
the calculation method are indicated in the relevant sections of the document. In particular, with regard to the indicator of the direct economic value generated and distributed (201-1) in 2019, the method of calculating the amounts allocated to the community was revised in order to bring it closer to the London Benchmarking Group (LBG) model. It should be noted that with regard to the raw materials indicator (301-1) the 2018 data have been revised following the inclusion of the VARD group data excluding nitrogen and iron, the latter was provided only for Fincantieri S.p.A. and Fincantieri Marine Group for both 2018 and 2019. Fincantieri Marine Group's 2018 data for the procurement of materials has been revised for comparative purposes and as a result of improved collection systems. Fincantieri Marine Systems North America provided data for the first year on employee journeys by air and by car. As a result, indirect Scope 3 greenhouse gas (GHG) emissions (305-3) for both years were also integrated with emissions from ferrous materials and those for 2018 were revised following the update of the data on raw materials and material procurement data. Fincantieri Marine Group's 2018 data on minority groups included in the indicator
(405-1) have been reclassified for comparison purposes to adapt them to the definition that is common to the whole Group.
With regard to the analysis and description of the main indirect economic impacts associated with outsourcing of the production chain
(203-2), Fincantieri has used an econometric model developed by Censis (a Foundation recognized with Decree of the President of the Republic No. 712/1973). Based on this model,
a better estimate was produced to represent the multiplier effects that Fincantieri is able to produce within the national economic system, based on the specific production and business model developed and pursued in recent years and the structure of the supply chain, with the relative levels of integration upstream of the production cycle for naval vessels.
The document was also the subject of a limited assurance engagement according to the criteria indicated in the revised ISAE 3000 standard involving the independent auditors PwC S.p.A. who, at the end of their work, issued the report required under Legislative Decree 254/16 and Consob Regulation 20267 of 2019 concerning the compliance of the information supplied in the Sustainability Report - Consolidated Non-Financial Statement prepared by Fincantieri under Legislative Decree 254/16 and in accordance with the reporting standard adopted.
The Sustainability Report is required to be published annually. The document is also available on the website (www.fincantieri. com), in the Sustainability section.
For any further information it is possible to contact the Sustainability unit at the email address sustainability@fincantieri.it
MATERIAL ASPECTS
MATERIAL ASPECTS FOR FINCANTIERI
MACRO AREA | MATERIAL TOPIC |
Governance and | |
business integrity | |
Governance | Cyber security |
Economic and financial | |
sustainability | |
Economic | Procurement activities |
resp. | |
Protection of | |
employment and | |
industrial relationships | |
Training and education | |
Human | Company welfare |
resources resp. | Diversity and equal |
opportunity | |
Health and safety in the | |
workplace | |
Local communities and | |
relations with the local | |
area | |
Social resp. | Human rights |
Product quality and | |
compliance with | |
technical regulations | |
and standards | |
Product | Innovation, research |
resp. | and development |
Customer satisfaction | |
Climate change | |
Environmental | |
management | |
Environmental | Environmental impact |
resp. | |
of products and | |
services |
GRI STANDARD TOPICS
Organizational profile; Ethics and integrity; Governance; Stakeholder engagement; Indirect economic impacts, Anti-corruption; Anticompetitive behaviour
Ethics and integrity; Customer privacy
Economic performance
Procurement practices; Environmental and social assessment of suppliers
Market presence; Employment; Labour/management relations; Freedom of association and collective bargaining
Training and education
Employment
Diversity and equal opportunity
Occupational health and safety
Local communities; Public policy
Environmental and social assessment of suppliers
Customer health and safety; Customer privacy; Socioeconomic compliance
Stakeholder engagement; Customer health and safety; Emissions
Stakeholder engagement
Emissions
Materials, Energy; Water and effluents; Biodiversity, Emissions, Effluents and waste; Environmental compliance
Emissions
BOUNDARY OF ASPECT
INTERNAL EXTERNAL
Supply chain;
Group Customers; Community
Supply chain;
Group Customers; Community
Supply chain;
Group Customers; Community
Group | Supply chain |
Group Community
Group
Group
Group
Group
Group Community
Group | Supply chain, |
Community | |
Group | Customers |
Group Customers; Supply chain
Group Customers
Group Community, Environment
Group Community, Environment
Group Environment
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FINCANTIERI GROUP
DESCRIPTION OF MATERIAL TOPICS
FINCANTIERI GROUP
Governance and business integrity Business integrity is the capacity to develop the business fairly and transparently and is a key factor characterizing the identity of the Group, as well as an important element in its reputation.
Responsible governance ensures fair and transparent conditions in the conduct of business affairs and the related company activities, protecting the company image and reputation, meeting the expectations of stakeholders and safeguarding the work of employees.
Cyber security
The focus on cyber security has gradually intensified in response to the ever-increasing complexity and frequency of cyber attacks carried out against companies with national and international strategic importance, making it necessary to constantly adapt the corporate defences and processes for safeguarding IT assets.
Protecting the integrity and confidentiality of data and information has become a pillar of the corporate digital strategy. The Group guarantees the protection of computer systems and data by avoiding the risk of network breaches, corruption of sensitive data or processes, using prevention, detection and measures against potential cyber attacks.
Economic and financial sustainability The Group is committed to increasingly sustainable and responsible performance, creating the conditions for development which meets the needs and expectations of all its stakeholders.
Innovation, research and development Technological excellence is a key element of the Group's entrepreneurial approach, which allows it to maintain and strengthen its competitiveness and leading position in complex, markets with high potential.
Employment protection and trade union relations
People are the key assets of the Group and their protection generates wealth for the
company. Individual growth comes with constant collaboration and cooperation, factoring in common ideas and practice, skills and actions, international exchange and comparison and a multidisciplinary approach. Industrial relations in Fincantieri are based on a participative model which values and enhances the role of trade unions and workers, also through the establishment of appropriate joint committees.
Procurement activities
A significant portion of the overall value of each ship depends on materials, parts, components and turnkey systems supplied by third parties. The Group actively manages its make-or-buy procurement strategies and therefore the size of the contribution of third party suppliers to the overall value of the project, also through rigorous qualification processes.
Product quality and compliance with technical standards
Excellent levels of quality are in the DNA of the Group, because the complexity of its business requires high standards in terms of quality and compliance with technical regulations and standards, at each stage of the production process. Responsibility for ensuring quality is widespread and shared.
Customer satisfaction
Customers and their satisfaction are at the centre of the Group's interest; customer satisfaction is pursued by constantly involving the customer at the execution stage, in the continuous monitoring of quality and through the offer of innovative products.
Climate change
The Group manages the risks related to climate change, constantly researching new methods to improve its practices and minimize the impact of emissions resulting from its industrial activities. It supports research projects in collaboration with research institutes/universities on issues associated with climate risks.
Environmental management Environmental protection is at the centre of the activities of the Company, which must commit itself, in carrying out its activities, to making the principles of environmental sustainability its own, both in its strategic choices and in its business processes.
To this end it must commit itself to improving energy efficiency and saving, proper management of water resources and correct disposal of waste and effluent.
Safeguarding the natural value of the areas affected by shipyard activities is also important. To protect these delicate places, specific and special precautions are put in place in accordance with local legislation.
Environmental impact of products and services
The Group operates with a "life cycle" approach, aiming to minimize the environmental and social impact of a product or service over its life cycle, departing therefore from a model which sees the impact on the environment and society of only production activities, and broadening the analysis of possible negative external effects to all the links in the value chain
Diversity and equal opportunity Diversity allows all the transformations and changes currently taking place to be embraced and represents an open, flexible
and helpful relational approach. With regard to equal opportunities, significant commitment has been given to increasing the presence of women in the Company.
Company welfare
This is an innovative tool which permits efficient management of resources and provides an alternative to traditional pay and incentive mechanisms. The ultimate aim is to improve the quality of life and wellbeing of employees and their families.
Health and safety in the workplace Safety at work is a condition for the performance of work without exposure to the risk of accidents or occupational disease. Historically Fincantieri has dedicated significant effort to the protection of health and safety; over the years it has promoted a profound change in safety culture, as a first step towards further development. The key element is personnel training as a tool for risk prevention.
Training and education
Investment in staff training and development is of strategic importance in terms of restoring a high level of skill and know-how in the field, at all levels.
Accordingly the training on offer has been expanded with new technical and managerial training programmes.
Local communities and relations with the local area
Local development is directly linked both with business activities and with the ability to systematically involve local players, showing awareness of the impact on the community. In terms of business activities, networks of small and medium-sized enterprises (SME), highly specialized in various macro-sectors, are engaged.
In addition, initiatives to promote the development of local communities are stimulated and encouraged, with the aim of creating shared value.
Human rights
The Company has a strong commitment to ensuring that the skills and competencies of each employee are developed and maintained, both through recognition of merit and respect for equal opportunities, with the aim of safeguarding the human rights sanctioned by the Universal Declaration of the UN. Moreover the Group has always paid the maximum attention to ensuring transparency and observance of agreements and laws governing the contracting (tendering) system, a key element in its own development capacity and competitiveness in the relevant markets.
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FINCANTIERI GROUP
GLOBAL COMPACT RECONCILIATION TABLE
THE TEN PRINCIPLES | SUSTAINABILITY REPORT 2019 |
PAGE
FINCANTIERI GROUP
THE TEN PRINCIPLES | SUSTAINABILITY REPORT 2019 | PAGE |
Principles 1, 2 - Businesses are required to promote and respect universally recognized human rights within their sphere of influence and to ensure that they are not complicit in human rights abuses, even indirectly.
Principles 3, 4, 5, 6 - Businesses are required to uphold workers' freedom of association and recognize the right to collective bargaining; the elimination of all forms of forced and compulsory labour; the effective abolition of child labour; the elimination of all forms of discrimination in respect of employment and occupation.
Human rights
The Company is committed to ensuring and promoting respect for human rights, a priority for the Group, in all business areas and among all stakeholders, whether Group employees or suppliers. The activities are conducted in accordance with fundamental human rights standards. As proof of this commitment, the Group's policies and practices are aligned with:
- the International Bill of Human Rights, including the United Nations (UN) Universal Declaration on Human Rights;
- fundamental Conventions of the International Labor Organization (ILO);
- Guidelines of the Organization for Economic Co-Operation and Development (OECD) for Multinational Enterprises;
- the Ten principles of the United Nations Global Compact.
Fincantieri promotes sustainability and business ethics in the supply chain by conducting human rights, environmental, occupational health and safety audits on its suppliers.
Fincantieri protects health and safety at work through training, awareness and information initiatives.
Labour
Fincantieri is committed to complying with the ILO's four core labour standards, as set forth in the Declaration on Fundamental Principles and Rights at Work:
- freedom of association and the right to collective bargaining;
- elimination of all forms of forced or compulsory labour;
- effective abolition of child labour;
- elimination of all forms of discrimination in respect of employment and occupation.
Fincantieri rejects any form of discrimination based on ethnicity, colour, gender, age, disability, sexual orientation, religion, political opinion, nationality and social origin. It is committed to maintaining a work environment that is free from any and all forms of violence or harassment.
Fincantieri regulates its relationships with political organizations and labour unions exclusively based on the current laws, regulations and agreements/contracts, guaranteeing the highest principles of transparency and correct conduct.
Fincantieri is committed to initiatives to balance life and work.
Fincantieri provides employees with training and professional development paths.
46-47;
51-54;
96-101;
128-130;
136
46-47;
51-54;
96-101;
120-143
Principles 7, 8, 9 - Businesses are required to support a precautionary approach to environmental challenges; undertake initiatives that promote greater environmental responsibility; and encourage the development and diffusion
of environmentally friendly technologies.
Principle 10 - Businesses are committed to working against corruption in all its forms, including extortion and bribery.
Support for the Sustainable Development Objectives
Environment
Fincantieri is committed to:
- reducing its direct impact by reducing consumption and waste produced, and prioritizing the use of eco-sustainable resources, such as certified energy from renewable sources;
- protecting the environment and seeing the environmental management system as the tool for implementing and monitoring the actions taken to carry out the commitments made;
- following all the international best practices to minimize a ship's environmental impact throughout its entire life cycle. The Group is committed to developing new technologies to save energy, reduce emissions and increase the performance and quality of its ships;
- also making its suppliers aware of environmental aspects.
Anti-corruption
Fincantieri disseminates ethical principles and corporate values and provides training on legality and anti-corruption issues.
Fincantieri carries out reputational audits on suppliers and third parties.
No corruption cases were reported in 2019.
Fincantieri is also committed to contributing to the achievement of the Sustainable Development Goals defined by the United Nations, in particular, the Company is active on goals 7, 8, 9, 12, 13 and 14.
156-183
46-50
32-35
192 | 193 |
FINCANTIERI GROUP
FINCANTIERI GROUP
GRI CONTENT INDEX
"In accordance - Core" option
Key:
FC: Fincantieri S.p.A., Italian and minor foreign subsidiaries
VARD: VARD group
FMG: Fincantieri Marine Group
FMSNA: Fincantieri Marine Systems North America Inc.
CODE | INDICATOR DESCRIPTION | PAGE | ||||||||
EMPLOYEES BY TYPE OF CONTRACT - WOMEN | ||||||||||
PERMANENT | FIXED TERM | TOTAL | ||||||||
FULL TIME | PART TIME | FULL TIME | PART TIME | |||||||
2018 | 2019 | 2018 | 2019 | 2018 | 2019 | 2018 | 2019 | 2018 | 2019 | |
FC | 625 | 775 | 141 | 145 | 41 | 38 | 3 | 0 | 810 | 958 |
VARD | 1,175 | 1,242 | 24 | 23 | 106 | 74 | 4 | 3 | 1,309 | 1,342 |
FMG | 256 | 295 | 1 | 2 | 0 | 0 | 0 | 0 | 257 | 297 |
The contents of the Report have been prepared in accordance with the GRI Sustainability Reporting Standards of 2016, with the exception of the GRIs 303 - Water and Effluents and GRI 403 - Occupational Health and Safety indicators which implement the GRI 2018 Standards. The Report has been prepared in accordance with GRI Standards: Core option.
GENERAL STANDARD DISCLOSURES
CODE | INDICATOR DESCRIPTION | PAGE |
ORGANIZATION PROFILE | ||
102-1 | Name of the organization | FINCANTIERI S.p.A. |
102-2 | Activities, brands, products, and services | 8; 14 |
102-3 | Location of headquarters | 12 |
102-4 | Location of operations | 8 |
102-5 | Ownership and legal form | 16 |
102-6 | Markets served | 8 |
102-7 | Scale of the organization | 8 |
102-8 | Information on employees and other workers | 120 |
EMPLOYEES BY GEOGRAPHICAL AREA
2018 | 2019 | |||||||||
NUMBER OF EMPLOYEES | NUMBER OF EMPLOYEES | |||||||||
Italy | 8,662 | 44.9% | 9,334 | 47.1% | ||||||
Rest of europe | 7,459 | 38.7% | 7,389 | 37.3% | ||||||
North america | 2,060 | 10.7% | 2,204 | 11.1% | ||||||
South america | 308 | 1.6% | 121 | 0.6% | ||||||
Africa | 0 | - | 0 | - | ||||||
Asia | 784 | 4.1% | 775 | 3.9% | ||||||
Oceania | 1 | 0.0% | 0 | 0.0% | ||||||
Total | 19,274 | 100% | 19,823 | 100% | ||||||
EMPLOYEES BY TYPE OF CONTRACT | ||||||||||
PERMANENT | FIXED TERM | TOTAL | ||||||||
FULL TIME | PART TIME | FULL TIME | PART TIME | |||||||
2018 | 2019 | 2018 | 2019 | 2018 | 2019 | 2018 | 2019 | 2018 | 2019 | |
FC | 8,304 | 8,994 | 160 | 177 | 204 | 171 | 3 | 2 | 8,671 | 9,344 |
VARD | 7,357 | 7,278 | 50 | 48 | 1,227 | 1,099 | 30 | 12 | 8,664 | 8,437 |
FMG | 1,881 | 1,975 | 2 | 2 | 0 | 0 | 0 | 0 | 1,883 | 1,977 |
FMSNA | 56 | 65 | 0 | 0 | 0 | 0 | 0 | 0 | 56 | 65 |
Total | 17,598 | 18,312 | 212 | 227 | 1,431 | 1,270 | 33 | 14 | 19,274 | 19,823 |
% Incidence | 91.3% | 92.4% | 1.1% | 1.1% | 7.4% | 6.4% | 0.2% | 0.1% | 100% | 100% |
FMSNA | 9 | 12 | 0 | 0 | 0 | 0 | 0 | 0 | 9 | 12 |
Total | 2,065 | 2,324 | 166 | 170 | 147 | 112 | 7 | 3 | 2,385 | 2,609 |
% Incidence | 86.5% | 89.1% | 7.0% | 6.5% | 6.2% | 4.3% | 0.3% | 0.1% | 100% | 100% |
The data refer to the entire Fincantieri Group. Other collaborators (interns, apprentices, agency workers) are not included, which in 2019 numbered 1,029, of whom 119 women, as they are not part of the workforce.
102-9 | Supply chain | 86-102 |
102-10 | Significant changes to the organization and its supply chain | 12-14 |
102-11 | Precautionary principle | 27; 44-45 |
102-12 | External initiatives | 24; 70; 75-78 |
102-13 | Membership of associations | 24 |
STRATEGY | ||
102-14 | Statement from a senior decision-maker | 4 |
ETHICS AND INTEGRITY | ||
102-16 | Values, principles, standards, and norms of behavior | 17; 46-47 |
GOVERNANCE | ||
102-18 | Governance structure | 20; 38-41 |
102-35 | Remuneration policies | 42-43 |
STAKEHOLDER ENGAGEMENT | ||
102-40 | List of stakeholder groups | 22-23 |
102-41 | Collective bargaining agreements | 138-140 |
The percentage of employees covered by collective bargaining agreements is 95% in Fincantieri S.p.A. and its Italian subsidiaries compared to 66% for Fincantieri Marine Group, 0% for Fincantieri Marine Systems North America Inc. and a variable coverage in the countries worked in by the VARD group (0% Canada, United States, Poland, Chile, Croatia, India, Scotland, Singapore, Estonia, 89% Norway, 99% Brazil, 100% Vietnam, Italy, Romania).
102-42 | Identifying and selecting stakeholders | 22-23 |
102-43 | Approach to stakeholder engagement | 22-23 |
102-44 | Key topics and concerns raised | 25-26 |
194 | 195 |
FINCANTIERI GROUP
CODE | INDICATOR DESCRIPTION | PAGE |
REPORTING PRACTICE | ||
102-45 | Entities included in the consolidated financial statements | 8; 186-189 |
102-46 | Defining report content and topic boundaries | 186-189 |
102-47 | List of material topics | 26; 190-191 |
102-48 | Restatements of information | 186-189 |
102-49 | Changes in reporting | 186-189 |
102-50 | Reporting period | 186-189 |
102-51 | Date of most recent report | 186-189 |
102-52 | Reporting cycle | 186-189 |
102-53 | Contact point for questions regarding the report | 186-189 |
102-54 | Claims of reporting in accordance with GRI Standards | 194 |
102-55 | GRI content index | 194-204 |
102-56 | External assurance | 206 |
SPECIFIC STANDARD DISCLOSURES | ||
CATEGORY: ECONOMIC | ||
ECONOMIC PERFORMANCE | ||
103-1 | Management approach | 62 |
103-2 | ||
103-3 | ||
201-1 | Direct economic value generated and distributed | 62 |
MARKET PRESENCE | ||
103-1 | Management approach | 120 |
103-2 | ||
103-3 | ||
202-2 | Proportion of senior management hired from the local community |
As regards the recruitment policies for senior management, the majority of those recruited (over 94%) are found to be from local profiles and candidates.
INDIRECT ECONOMIC IMPACTS
103-1 | Management approach | 68-69 |
103-2 | ||
103-3 | ||
203-2 | Significant indirect economic impacts | 68-69 |
For the analysis and description of the main indirect economic impacts, Fincantieri has used an econometric model developed by Censis (a Foundation recognized with Decree of the President of the Republic 712/1973). The impact measures were calculated using the analysis and calculation methodology based on Leontief input-output tables, although this model was substantially modified to adapt it to the specific Fincantieri production and company structure. The estimates can be considered sufficiently robust proxies for the multiplier effects that Fincantieri is able to produce within the national economic system, given its specific production model, the business model that the Company has built in recent years and the structure of the supply chain, with the relative levels of integration upstream of the production cycle for naval vessels.
FINCANTIERI GROUP
CODE | INDICATOR DESCRIPTION | PAGE |
PROCUREMENT PRACTICES | ||
103-1 | Management approach | 86-87 |
103-2 | ||
103-3 | ||
204-1 | Proportion of spending on local suppliers | 88-89;98-101 |
ANTI-CORRUPTION | ||
103-1 | Management approach | 46-50 |
103-2 | ||
103-3 | ||
205-2 | Communication and training about anti-corruption policies and | 49-50 |
procedures | ||
205-3 | Confirmed incidents of corruption and actions taken | 50 |
ANTI-COMPETITIVE BEHAVIOR | ||
103-1 | Management approach | 46-50 |
103-2 | ||
103-3 | ||
206-1 | Legal actions for anti-competitive behavior, anti-trust, and monopoly | |
practices | ||
No fines or sanctions | have been received for actions referred to the reporting period. | |
CATEGORY: ENVIRONMENTAL | ||
103-1 | Management approach | 156-159 |
103-2 | ||
103-3 |
Fincantieri is aware that its level of responsibility is judged by its ability to combine, in its work, professionalism and quality with strict respect for laws and consideration for the needs and expectations of the community in relation to the protection of public goods. Fincantieri wants to represent a model of excellence also in terms of maximum environmental protection.
To manage the more significant environmental aspects and prevent its business having an environmental impact, Fincantieri is committed to implementing and maintaining an Environmental Management System and obtaining the relevant certification in accordance with international standard ISO 14001 at its sites.
8 grievances regarding environmental impacts were filed in 2019, of which 2 referred to previous years and were resolved during the year.
MATERIALS
301-1 | Materials used by weight or volume | 164-165 | ||
ENERGY | ||||
302-1 | Energy consumption within the organization | 161-162 | ||
Type | MEASUREMENT UNIT | 2018 | 2019 | |
Acetylene | GJ | 16,769 | 18,585 | |
Natural gas | GJ | 430,935 | 425,761 | |
Diesel | GJ | 634,912 | 612,830 | |
LPG | GJ | 22,761 | 14,052 | |
LNG | GJ | 4 | 8 | |
Fuel oil | GJ | 256,615 | 224,767 | |
Total fuel | GJ | 1,361,996 | 1,296,003 | |
Total self-generated | GJ | 587 | 3,766 | |
thermal energy | ||||
Total electricity | GJ | 1,258,122 | 1,280,560 | |
Of which from renewable | GJ | 106,376 | 508,185 | |
sources | ||||
Total energy | GJ | 2,620,706 | 2,580,329 |
The data refer to the entire Fincantieri Group.
Energy consumption varies according to production loads.
196 | 197 |
FINCANTIERI GROUP
CODE | INDICATOR DESCRIPTION | PAGE | |||||
302-4 | Reduction of energy consumption | 161 | |||||
INITIATIVE | MEASUREMENT | BASELINE | CONSUMPTION | BASELINE | SAVING | % SAVING | |
UNIT | CONSUMPTION | OBTAINED | OBTAINED | ||||
LED replacement warehouse | kWh | May - | 60,786 | 104,482 | 43,696 | 41.8% | |
51 and Package Workshop - | December | ||||||
Monfalcone (Italy) | 2018 | ||||||
LED replacement PRF A | kWh | 2018 | 87,093 | 217,120 | 130,027 | 59.9% | |
workshop - Castellammare di | |||||||
Stabia (Italy) | |||||||
LED replacement block | kWh | May - | 54,000 | 133,000 | 79,000 | 59.4% | |
workshop and OSA - Palermo | December | ||||||
(Italy) | 2018 | ||||||
Replacement of outdoor lighting | kWh | January | 174,599 | 686,499 | 511,900 | 74.6% | |
- Sestri Ponente (Italy) | - October | ||||||
2018 | |||||||
LED Replacement Program - | kWh | 2018 | 72,589 | 421,817 | 349,228 | 82.8% | |
Marinette (United States) | |||||||
Replacement yard areas - Braila | kWh | 2018 | 106,650 | 222,916 | 116,266 | 52.2% | |
(Romania) | |||||||
Total | 555,717 | 1,785,834 | 1,230,117 | 68.9% |
The data relate to the Fincantieri Group.
WATER AND EFFLUENTS
303-1 | Interactions with water as a shared resource | 162-163 |
303-2 | Management of water discharge-related impacts | 164 |
303-3 | Water withdrawal | 163 |
BIODIVERSITY | ||
304-1 | Operational sites owned, leased, managed in, or adjacent to, | 171 |
protected areas and areas of high biodiversity value outside | ||
protected areas | ||
EMISSIONS | ||
305-1 | Direct (Scope 1) GHG emissions | 167 |
The data refer to the entire Fincantieri Group. The emissions have been estimated following the guidelines of the | ||
Greenhouse Gas (GHG) Protocol. The sources of emission factors are ISPRA and DEFRA for fuels and transport fuels, | ||
while they are DEFRA and IPCC for refrigerant gases. | ||
305-2 | Energy indirect (Scope 2) GHG emissions | 167 |
The data refer to the entire Fincantieri Group. The emissions have been estimated following the guidelines of the | ||
Greenhouse Gas (GHG) Protocol. | ||
The sources of emission factors are ISPRA for Italy and TERNA International Comparisons 214/USA for abroad. | ||
Emissions from Scope 2 for the Italian sites that have acquired energy from renewable sources certified | with the | |
Guarantee of Origin (GO) and those for Norwegian sites of the subsidiary VARD have be calculated used the market- | ||
based methodology which attributes a conversion factor of zero (0) for energy consumption from renewable sources. | ||
305-3 | Other indirect (Scope 3) GHG emissions | 168 |
The 2018 data have been revised for comparison purposes following improvement of the identification and | ||
measurement of raw material consumption by the VARD group and the procurement of materials by Fincantieri | ||
Marine Group. | ||
The 2019 data refer to the entire Fincantieri Group, except for the procurement of raw materials which concerns | ||
Fincantieri S.p.A. (56% of stocks) and Fincantieri Marine Group. | ||
The emissions have been estimated following the guidelines of the Greenhouse Gas (GHG) Protocol. The sources of | ||
the emission factors are DEFRA, EPA and Greenhouse Gas (GHG) Protocol. | ||
305-4 | Intensity of GHG emissions | 168 |
305-7 | Nitrogen oxides (NOx), sulfur oxides (SOx) and other significant air | 169-170 |
emissions |
FINCANTIERI GROUP
CODE | INDICATOR DESCRIPTION | PAGE |
EFFLUENTS AND WASTE | ||
306-2 | Waste by type and disposal method | 165-166 |
ENVIRONMENTAL COMPLIANCE | ||
307-1 | Non-compliance with environmental laws and regulations | |
No significant fines | were received in the reporting period. | |
SUPPLIER ENVIRONMENTAL ASSESSMENT | ||
103-1 | Management approach | 86-87 |
103-2 | ||
103-3 | ||
308-1 | New suppliers that were screened using environmental criteria | 92-95 |
308-2 | Negative environmental impacts in the supply chain and actions | 96-101 |
taken | ||
CATEGORY: SOCIAL | ||
103-1 | Management approach | 120-128 |
103-2 | ||
103-3 |
The Group has staff | policies that are characterized by enhancement, professional growth, protection of rights and | |||||||
respect for corporate values. The fundamental principles and rights recognized to workers are detailed in the Code | ||||||||
of Conduct. Fincantieri operates within the reference framework of the UN's Universal Declaration of Human Rights, | ||||||||
the fundamental Conventions of the International Labour Organization (ILO), the OECD Guidelines for Multinational | ||||||||
Enterprises and the ten principles of the United Nations Global Compact. | ||||||||
Staff are hired with a proper written contract. Worker exploitation, forced, compulsory or child labour of any kind is | ||||||||
not permitted. Employees are recognized the rights to freedom of association, to establish workers' representatives | ||||||||
and to perform the related duties (including the right to collective bargaining), in accordance with the regulations and | ||||||||
practices in force in the different countries. Lastly, benefits | of various kinds, in addition to remuneration, are envisaged | |||||||
for the employees. | ||||||||
During 2019, 189 grievances were filed related to impacts concerning employment, of which 28 were resolved in the | ||||||||
reporting period. The 9 grievances filed related to human rights violations were all resolved during the reporting | ||||||||
period. | ||||||||
Furthermore, 621 employment disputes are reported relating to employees and former employees for a value of over | ||||||||
260 million euros including the asbestos-related cases dating back to the past. | ||||||||
EMPLOYMENT | ||||||||
401-1 | New employee hires and employee turnover | 121-122 | ||||||
HIRES | ||||||||
≤ 30 | 30-50 | ≥ 50 | TOTAL | |||||
2018 | 2019 | 2018 | 2019 | 2018 | 2019 | 2018 | 2019 | |
FC | 185 | 360 | 291 | 370 | 53 | 59 | 529 | 789 |
VARD | 726 | 646 | 842 | 646 | 220 | 143 | 1,788 | 1,435 |
FMG | 121 | 226 | 110 | 206 | 57 | 87 | 288 | 519 |
FMSNA | 2 | 6 | 5 | 15 | 0 | 3 | 7 | 24 |
Total | 1,034 | 1,238 | 1,248 | 1,237 | 330 | 292 | 2,612 | 2,767 |
LEAVERS | ||||||||
≤ 30 | 30-50 | ≥ 50 | TOTAL | |||||
2018 | 2019 | 2018 | 2019 | 2018 | 2019 | 2018 | 2019 | |
FC | 36 | 44 | 80 | 98 | 60 | 82 | 176 | 224 |
VARD | 746 | 555 | 1,134 | 753 | 323 | 334 | 2,203 | 1,642 |
FMG | 109 | 117 | 159 | 176 | 143 | 139 | 411 | 432 |
FMSNA | 4 | 1 | 4 | 5 | 1 | 3 | 9 | 9 |
Total | 895 | 717 | 1,377 | 1,032 | 527 | 558 | 2,799 | 2,307 |
198 | 199 |
FINCANTIERI GROUP
CODE | INDICATOR DESCRIPTION | PAGE | ||||||
HIRES - WOMEN | ||||||||
≤ 30 | 30-50 | ≥ 50 | TOTAL | |||||
2018 | 2019 | 2018 | 2019 | 2018 | 2019 | 2018 | 2019 | |
FC | 56 | 99 | 57 | 59 | 3 | 5 | 116 | 163 |
VARD | 100 | 91 | 139 | 74 | 30 | 16 | 269 | 181 |
FMG | 32 | 43 | 21 | 47 | 13 | 12 | 66 | 102 |
FMSNA | 0 | 1 | 0 | 5 | 0 | 1 | 0 | 7 |
Total | 188 | 234 | 217 | 185 | 46 | 34 | 451 | 453 |
LEAVERS - WOMEN | ||||||||
≤ 30 | 30-50 | ≥ 50 | TOTAL | |||||
2018 | 2019 | 2018 | 2019 | 2018 | 2019 | 2018 | 2019 | |
FC | 7 | 13 | 14 | 12 | 3 | 9 | 24 | 34 |
VARD | 45 | 46 | 68 | 55 | 44 | 40 | 157 | 141 |
FMG | 17 | 25 | 31 | 23 | 21 | 18 | 69 | 66 |
FMSNA | 1 | 0 | 1 | 2 | 0 | 0 | 2 | 2 |
Total | 70 | 84 | 114 | 92 | 68 | 67 | 252 | 243 |
The data refer to the entire Fincantieri Group and do not include intra-group movements.
In 2019, 2,767 people were hired, including 453 women, and there were 2,307 leavers, including 243 women. The rate of new employee hires was 14.0% (16.4% for women) while the turnover was 11.6% (10.5% for women).
401-2 | Benefits provided for full-time employees that are not provided to | 137-138 |
temporary or part-time employees |
LABOUR/MANAGEMENT RELATIONS
402-1Minimum notice periods regarding operational changes
In the case of business reorganization, the Group applies, in Italy and abroad, the instruments provided for by national collective bargaining agreements and contracts and supplementary company contracts. The minimum notice period in Italy varies depending on the national contracts and for Fincantieri S.p.A. is 25 days while for the Italian subsidiaries either none is provided for or it varies from between 5 and 25 days, for companies in the VARD group it varies depending on the country (90 days in Scotland, 30 days in Brazil, India, Norway, Poland, Romania and Singapore, 25 days in Italy, while it is not provided for in Vietnam, Canada, the United States, Estonia, Chile and Croatia). The indicator is not applicable for the American companies Fincantieri Marine Group and Fincantieri Marine Systems North America Inc. as it is not provided for within contracts.
OCCUPATIONAL HEALTH AND SAFETY
103-1 | Management approach | 131-136 |
103-2 | ||
103-3 | ||
403-1 | Occupational health and safety management system | 131; 136 |
403-2 | Hazard identification, risk assessment, and incident investigation | 131-136 |
403-3 | Occupational health services | 131-133 |
403-4 | Worker participation, consultation, and communication on | 131-133 |
occupational health and safety | ||
403-5 | Worker training on occupational health and safety | 133 |
403-6 | Promotion of worker health | 131-136 |
403-7 | Prevention and mitigation of occupational health and safety impacts | 131-136 |
directly linked by business relationships | ||
403-8 | Workers covered by an occupational health and safety management | 136 |
system |
The number of employees at production sites covered by an occupational health and safety management system at Group level is 15,261 equal to 91% (in Italy it is 100%). While the number of non-employee staff at production sites covered by an occupational health and safety management system is 42,557 for Fincantieri S.p.A. (100%) and Fincantieri Marine Group (62%).
FINCANTIERI GROUP
CODE | INDICATOR DESCRIPTION | PAGE | |||||||||
403-9 | Work-related injuries | 133 | |||||||||
HEALTH AND SAFETY INDICATORS | |||||||||||
2018 | 2019 | ||||||||||
FC | VARD | FMG | FMSNA | TOTAL | FC | VARD | FMG | FMSNA | TOTAL | ||
Severity index* | 0.6 | 0.1 | 0.2 | 0.0 | 0.3 | 0.4 | 0.0 | 0.1 | 0 | 0.2 | |
Rate of occupational | 0.2 | 0.1 | 0 | 0 | 0.1 | 0.2 | 0.0 | 0 | 0 | 0.1 | |
disease | |||||||||||
Rate of absenteeism | 4.1 | 3.4 | 3.3 | 0 | 3.6 | 3.8 | 4.0 | 2.5 | 0 | 3.7 | |
Injury rate/Frequency rate | 18.7 | 3.9 | 7.9 | 17.7 | 10.3 | 15.7 | 6.4 | 10.7 | 15.5 | 10.9 | |
Rate of recordable work- | 14.8 | 3.4 | 7.9 | 17.7 | 8.5 | 12.9 | 6.2 | 10.7 | 15.5 | 9.7 | |
related injuries | |||||||||||
Rate of high- | n.a.** | n.a.** | n.a.** | n.a.** | n.a.** | 0.1 | 0.1 | 0 | 0 | 0.1 | |
consequence work- | |||||||||||
related injuries | |||||||||||
Rate of fatalities as a | 0 | 0.1 | 0 | 0 | 0.0 | 0 | 0 | 0 | 0 | 0 | |
result of work-related | |||||||||||
injury | |||||||||||
Number of injuries | 267 | 69 | 28 | 2 | 366 | 239 | 100 | 42 | 2 | 383 | |
- of which work-related | 211 | 60 | 28 | 2 | 301 | 197 | 98 | 42 | 2 | 339 | |
- of which high- | n.a.** | n.a.** | n.a.** | n.a.** | n.a.** | 2 | 1 | 0 | 0 | 3 | |
consequence work- | |||||||||||
related | |||||||||||
- of which fatalities as a | 0 | 1 | 0 | 0 | 1 | 0 | 0 | 0 | 0 | 0 | |
result of work-relatedl | |||||||||||
- of which while | 56 | 9 | 0 | 0 | 65 | 42 | 2 | 0 | 0 | 44 | |
travelling | |||||||||||
HEALTH AND SAFETY INDICATORS - WOMEN | |||||||||||
2018 | 2019 | ||||||||||
FC | VARD | FMG | FMSNA | TOTALE | FC | VARD | FMG | FMSNA | TOTAL | ||
Severity index* | 0.1 | 0.1 | 0.3 | 0 | 0.1 | 0.0 | 0.0 | 0.0 | 0 | 0.0 | |
Rate of occupational | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |
disease | |||||||||||
Rate of absenteeism | 2.7 | 4.7 | 3.7 | 0 | 3.9 | 2.6 | 5.4 | 2.9 | 0 | 4.1 | |
Injury rate/Frequency | 6.0 | 2.6 | 12.4 | 0 | 4.7 | 4.4 | 1.3 | 22.4 | 0 | 5.0 | |
rate | |||||||||||
Rate of recordable | 1.7 | 1.7 | 12.4 | 0 | 3.0 | 2.9 | 1.3 | 22.4 | 0 | 4.5 | |
work-related injuries | |||||||||||
Rate of high- | n.a.** | n.a.** | n.a.** | n.a.** | n.a.** | 0 | 0 | 0 | 0 | 0 | |
consequence work- | |||||||||||
related injuries | |||||||||||
Rate of fatalities as a | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |
result of work-related | |||||||||||
injury | |||||||||||
Number of injuries | 7 | 6 | 6 | 0 | 19 | 6 | 3 | 12 | 0 | 21 | |
- of which work-related | 2 | 4 | 6 | 0 | 12 | 4 | 3 | 12 | 0 | 19 | |
- of which high- | n.a.** | n.a.** | n.a.** | n.a.** | n.a.** | 0 | 0 | 0 | 0 | 0 | |
consequence work- | |||||||||||
related | |||||||||||
- of which fatalities as a | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |
result of work-related | |||||||||||
- of which while | 5 | 2 | 0 | 0 | 7 | 2 | 0 | 0 | 0 | 2 | |
travelling |
The severity index was calculated as: (number of days lost due to injury/hours worked) x 1,000.
The rate of occupational disease was calculated as: (number of cases of occupational disease/hours worked) x 200,000.
The rate of absenteeism was calculated as: (number of days absent due to injury or illness/workable days) x 100.
The injury rate/frequency rate was calculated as: (number of injuries/hours worked) x 1,000,000.
The rate of recordable work-related injuries was calculated as: (number of recordable work-related injuries/hours worked) x 1,000,000.
The rate of high-consequencework-related injuries was calculated as: (number of high-consequencework-related injuries/hours worked) x 1,000,000.
The rate of fatalities as a result of work-related injury was calculated as: (number of fatalities as a result of work-related injury/hours worked) x 1,000,000.
- The severity index has been recalculated by no longer comparing it workable hours but to hours worked, so 2018 has also been revised.
- Data reported since 2019 as per 403 - Occupation health and safety GRI Standards 2018.
The data refer to the entire Fincantieri Group.
200 | 201 |
FINCANTIERI GROUP
CODE | INDICATOR DESCRIPTION | PAGE | ||||
HEALTH AND SAFETY INDICATORS - NON-EMPLOYEE WORKERS | ||||||
2019 | ||||||
FC | VARD | FMG | FMSNA | TOTAL | ||
Rate of recordable work-related | 13.6 | 10.9 | 3.0 | 0 | 13.1 | |
injuries | ||||||
Rate of high-consequence work- | 0.1 | 0.8 | 0 | 0 | 0.2 | |
related injuries | ||||||
Rate of fatalities as a result of | 0 | 0.1 | 0 | 0 | 0 | |
work-related injury | ||||||
Number of recordable work- | 619 | 79 | 3 | 0 | 701 | |
related injuries | ||||||
- of which high-consequence | 3 | 6 | 0 | 0 | 9 | |
- of which fatalities | 0 | 1 | 0 | 0 | 1 | |
Number of injuries - women | 0 | 3 | 0 | 0 | 3 | |
Number of non-employee staff | 27,918 | 12,338 | 557 | 0 | 40,813 | |
trained on health and safety |
As regards injuries involving non-employee workers in 2019, 701 injuries were recorded in the workplace at Group level, of which 1 was a fatality.
TRAINING AND EDUCATION
103-1 | Management approach | 124-128 |
103-2 | ||
103-3 | ||
404-1 | Average hours of training per year per employee | 124 |
HOURS OF TRAINING | |||
2018 | 2019 | VAR 2019/2018 | |
Senior managers | 3,770 | 3,689 | -2.1% |
Middle managers | 16,783 | 20,030 | 19.3% |
White collar employees | 123,778 | 154,196 | 24.6% |
Blue collar employees | 516,102 | 411,461 | -20.3% |
Total | 660,432 | 589,376 | -10.8% |
HOURS OF TRAINING - WOMEN | |||
2018 | 2019 | VAR 2019/2018 | |
Senior managers | 252 | 548 | 117.6% |
Middle managers | 1,639 | 2,088 | 27.4% |
White collar employees | 22,521 | 30,303 | 34.6% |
Blue collar employees | 65,882 | 62,456 | -5.2% |
Total | 90,294 | 95,395 | 5.6% |
The data refer to the entire Fincantieri Group.
404-3 | Percentage of employees receiving regular performance and career | 126-127 |
development reviews | ||
DIVERSITY AND EQUAL OPPORTUNITY | ||
103-1 | Management approach | 128-130 |
103-2 | ||
103-3 |
FINCANTIERI GROUP
CODE | INDICATOR DESCRIPTION | PAGE | |||||||||||
405-1 | Diversity of governance bodies and employees | 40; 128-130 | |||||||||||
EMPLOYEES BY CATEGORY | |||||||||||||
SENIOR MANAGERS | MIDDLE MANAGERS | WHITE COLLAR | BLUE COLLAR | TOTAL | |||||||||
EMPLOYEES | EMPLOYEES | ||||||||||||
2018 | 2019 | 2018 | 2019 | 2018 | 2019 | 2018 | 2019 | 2018 | 2019 | ||||
FC | 255 | 279 | 467 | 518 | 4,544 | 5,113 | 3,405 | 3,434 | 8,671 | 9,344 | |||
VARD | 90 | 80 | 549 | 594 | 1,978 | 2,031 | 6,047 | 5,732 | 8,664 | 8,437 | |||
FMG | 31 | 28 | 141 | 151 | 411 | 440 | 1,300 | 1,358 | 1,883 | 1,977 | |||
FMSNA | 1 | 3 | 8 | 11 | 16 | 24 | 31 | 27 | 56 | 65 | |||
Total | 377 | 390 | 1,165 | 1,274 | 6,949 | 7,608 | 10,783 | 10,551 | 19,274 | 19,823 | |||
% Incidence | 2.0% | 2.0% | 6.0% | 6.4% | 36.1% | 38.4% | 55.9% | 53.2% | 100% | 100% | |||
EMPLOYEES BY CATEGORY - WOMEN | |||||||||||||
SENIOR MANAGERS | MIDDLE MANAGERS | WHITE COLLAR | BLUE COLLAR | TOTAL | |||||||||
EMPLOYEES | EMPLOYEES | ||||||||||||
2018 | 2019 | 2018 | 2019 | 2018 | 2019 | 2018 | 2019 | 2018 | 2019 | ||||
FC | 12 | 14 | 50 | 59 | 740 | 877 | 8 | 8 | 810 | 958 | |||
VARD | 10 | 12 | 72 | 79 | 633 | 650 | 594 | 601 | 1,309 | 1,342 | |||
FMG | 3 | 3 | 21 | 21 | 124 | 143 | 109 | 130 | 257 | 297 | |||
FMSNA | 0 | 0 | 1 | 2 | 8 | 9 | 0 | 1 | 9 | 12 | |||
Total | 25 | 29 | 144 | 161 | 1,505 | 1,679 | 711 | 740 | 2,385 | 2,609 | |||
% Incidence on | 6.6% | 7.4% | 12.4% | 12.6% | 21.6% | 22.1% | 6.6% | 7.0% | 12.4% | 13.2% | |||
category total | |||||||||||||
% Incidence | 1.1% | 1.1% | 6.0% | 6.2% | 63.1% | 64.3% | 29.8% | 28.4% | 100% | 100% | |||
EMPLOYEES BY AGE GROUP | |||||||||||||
≤ 30 | 30-50 | ≥ 50 | TOTAL | ||||||||||
2018 | 2019 | 2018 | 2019 | 2018 | 2019 | 2018 | 2019 | ||||||
FC | 543 | 768 | 5,870 | 5,974 | 2,258 | 2,602 | 8,671 | 9,344 | |||||
VARD | 1,789 | 1,626 | 4,688 | 4,444 | 2,187 | 2,367 | 8,664 | 8,437 | |||||
FMG | 330 | 412 | 805 | 826 | 748 | 739 | 1,883 | 1,977 | |||||
FMSNA | 9 | 10 | 27 | 35 | 20 | 20 | 56 | 65 | |||||
Total | 2,671 | 2,816 | 11,390 | 11,279 | 5,213 | 5,728 | 19,274 | 19,823 | |||||
% Incidence | 13.9% | 14.2% | 59.1% | 56.9% | 27.0% | 28.9% | 100% | 100% | |||||
EMPLOYEES BY AGE GROUP - WOMEN | |||||||||||||
≤ 30 | 30-50 | ≥ 50 | TOTAL | ||||||||||
2018 | 2019 | 2018 | 2019 | 2018 | 2019 | 2018 | 2019 | ||||||
FC | 147 | 202 | 499 | 570 | 164 | 186 | 810 | 958 | |||||
VARD | 246 | 243 | 686 | 681 | 377 | 418 | 1,309 | 1,342 | |||||
FMG | 50 | 63 | 109 | 135 | 98 | 99 | 257 | 297 | |||||
FMSNA | 1 | 1 | 7 | 9 | 1 | 2 | 9 | 12 | |||||
Total | 444 | 509 | 1,301 | 1,395 | 640 | 705 | 2,385 | 2,609 | |||||
% Incidence | 18.6% | 19.5% | 54.5% | 53.5% | 26.9% | 27.0% | 100% | 100% |
The data refer to the entire Fincantieri Group.
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FINCANTIERI GROUP
CODE | INDICATOR DESCRIPTION | PAGE | |||||
PERCENTAGE OF EMPLOYEES BELONGING TO MINORITY GROUPS | |||||||
TOTAL | OF WHICH WOMEN | OF WHICH WITH DISABILITIES | |||||
2018 | 2019 | 2018 | 2019 | 2018 | 20 19 | ||
FC | 4.6% | 4.6% | 7.7% | 7.0% | 3.5% | 3.7% | |
VARD | 0.5% | 0.2% | 0.5% | 0.1% | 0.5% | 0.2% | |
FMG* | 4.2% | 4.5% | 5.1% | 5.1% | 4.2% | 4.5% | |
FMSNA | 16.1% | 40.0% | 0.0% | 8.3% | 7.1% | 13.8% | |
Total | 8.6% | 2.9% | 10.0% | 3.2% | 2.2% | 2.3% | |
The data refer to the entire Fincantieri Group. | |||||||
* Fincantieri Marine Group's 2018 figures have been revised for comparison purposes by adjusting them to the reporting criteria. | |||||||
405-2 | Ratio of basic salary and remuneration of women to men | 140-141 | |||||
FREEDOM OF ASSOCIATION AND COLLECTIVE BARGAINING | |||||||
407-1 | Operations and suppliers in which the right to freedom of association | 138-140 | |||||
and collective bargaining may be at risk | |||||||
LOCAL COMMUNITIES | |||||||
103-1 | Management approach | 144-145 | |||||
103-2 | |||||||
103-3 | |||||||
413-1 | Operations with local community engagement, impact assessments, | 144-145 | |||||
and development programs | |||||||
SUPPLIER SOCIAL ASSESSMENT | |||||||
103-1 | Management approach | 86-87 | |||||
103-2 | |||||||
103-3 | |||||||
414-1 | New suppliers that were screened using social criteria | 92-95 | |||||
414-2 | Negative social impacts in the supply chain and actions taken | 96-101 | |||||
PUBLIC POLICY | |||||||
103-1 | Management approach | 46-50 | |||||
103-2 | |||||||
103-3 | |||||||
415-1 | Political contributions | ||||||
Fincantieri Marine Group made a contribution of 26,798 euros to the Political Action Committee. | |||||||
CUSTOMER HEALTH AND SAFETY | |||||||
103-1 | Management approach | 112-115 | |||||
103-2 | |||||||
103-3 | |||||||
416-1 | Assessment of health and safety impacts of product and service | 80-84;114-116; | |||||
categories | 180-181 | ||||||
CUSTOMER PRIVACY | |||||||
103-1 | Management approach | 55-57 | |||||
103-2 | |||||||
103-3 | |||||||
418-1 | Substantiated complaints concerning breaches of customer privacy | ||||||
and losses of customer data |
No grievances were filed in the reporting period.
SOCIOECONOMIC COMPLIANCE
103-1 | Management approach | 46-50 |
103-2 | ||
103-3 | ||
419-1 | Non-compliance with laws and regulations in the social and economic | |
area | ||
No significant | fines were received in the reporting period. |
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FINCANTIERI GROUP
Independent auditor's report on the consolidated non- financial statement
pursuant to article 3, paragraph 10, of Legislative Decree No. 254/2016 and article 5 of CONSOB Regulation No. 20267 of January 2018
To the Board of Directors of Fincantieri SpA
Pursuant to article 3, paragraph 10, of Legislative Decree No. 254 of 30 December 2016 (the "Decree") and article 5 of CONSOB Regulation No. 20267/2018, we have been engaged to perform a limited assurance engagement on the consolidated non-financial statement of Fincantieri SpA and its subsidiaries (hereafter the "Group") for the year ended 31 December 2019 prepared in accordance with article 4 of the Decree, and approved by the Board of Directors on 1 April 2020 (hereafter the "NFS").
Responsibilities of the Directors and of the Board of Statutory Auditors for the NFS
The Directors are responsible for the preparation of the NFS in accordance with articles 3 and 4 of the Decree and with the "GRI-Sustainability Reporting Standards" defined in 2016 and subsequent versions (hereafter the "GRI Standards"), set out in the paragraph "Methodological note" of the NFS identified by them as the reporting standards.
The Directors are also responsible, in the terms prescribed by law, for such internal controls as they determine is necessary to ensure that the NFS is free from material misstatement, whether due to fraud or unintentional errors.
Moreover, the Directors are responsible for identifying the content of the NFS, within the matters mentioned in article 3, paragraph 1, of the Decree, considering the activities and characteristics of the Group and to the extent necessary to ensure an understanding of the Group's activities, its performance, its results and related impacts.
Finally, the Directors are responsible for defining the business and organizational model of the Group and, with reference to the matters identified and reported in the NFS, for the policies adopted by the Group and for the identification and management of risks generated and/or faced by the Group.
The Board of Statutory Auditors is responsible for overseeing, in the terms prescribed by law, compliance with the Decree.
FINCANTIERI GROUP
Auditor's Independence and Quality Control
We are independent in accordance with the principles of ethics and independence set out in the Code of Ethics for Professional Accountants published by the International Ethics Standards Board for Accountants, which are based on the fundamental principles of integrity, objectivity, competence and professional diligence, confidentiality and professional behaviour. Our audit firm adopts the International Standard on Quality Control 1 (ISQC Italia 1) and, accordingly, maintains an overall quality control system which includes processes and procedures for compliance with ethical and professional principles and with applicable laws and regulations.
Auditor's responsibilities
We are responsible for expressing a conclusion, on the basis of the work performed, regarding the compliance of the NFS with the Decree and with the GRI Standards. We conducted our engagement in accordance with the "International Standard on Assurance Engagements ISAE 3000 (Revised) - Assurance Engagements Other than Audits or Reviews of Historical Financial Information" (hereafter "ISAE 3000 Revised"), issued by the International Auditing and Assurance Standards Board (IAASB) for limited assurance engagements. The standard requires that we plan and apply procedures in order to obtain limited assurance that the NFS is free of material misstatement. The procedures performed in a limited assurance engagement are less in scope than those performed in a reasonable assurance engagement in accordance with ISAE 3000 Revised and, therefore, do not provide us with a sufficient level of assurance that we have become aware of all significant facts and circumstances that might be identified in a reasonable assurance engagement.
The procedures performed on the NFS were based on our professional judgement and consisted in interviews, primarily with company personnel responsible for the preparation of the information presented in the NFS, analysis of documents, recalculations and other procedures designed to obtain evidence considered useful.
In particular, we performed the following procedures:
- analysis of the relevant matters reported in the NFS relating to the activities and characteristics of the Group, in order to assess the reasonableness of the selection process used in accordance with article 3 of the Decree and with the reporting standard adopted;
- analysis and assessment of the criteria used to identify the consolidation area, in order to assess their compliance with the Decree;
- comparison of the financial information reported in the NFS with the information reported in the Fincantieri Group's Consolidated Financial Statements;
- understanding of the following matters:
- business and organisational model of the Group, with reference to the management of the matters specified by article 3 of the Decree;
- policies adopted by the Group with reference to the matters specified in article 3 of the Decree, actual results and related key performance indicators;
- main risks, generated and/or faced by the Group, with reference to the matters specified in article 3 of the Decree.
With reference to those matters, we compared the information obtained with the information presented in the NFS and carried out the procedures described under point 5 a) below;
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FINCANTIERI GROUP
5. understanding of the processes underlying the preparation, collection and management of the significant qualitative and quantitative information included in the NFS. In particular, we held meetings and interviews with the management of Fincantieri SpA, Vard Tulcea SA, Fincantieri Marine Group LLC, Fincantieri Marine Systems North America Inc and Isotta Fraschini Motori SpA and we performed limited analysis of documentary evidence, to gather information about the processes and procedures for the collection, consolidation, processing and submission of the non-financial information to the function responsible for the preparation of the NFS.
Moreover, for material information, considering the activities and characteristics of the Group:
- at the holding company level:
- with reference to the qualitative information included in the NFS, and in particular to the business model, the policies adopted and the main risks, we carried out interviews and acquired supporting documentation to verify their consistency with availableevidence;
- with reference to quantitative information, we performed analytical procedures as well as limited tests, in order to assess, on a sample basis, the accuracy of consolidation of the information;
- for the following companies, divisions and sites: Fincantieri SpA (Head Office -Trieste and Castellammare di Stabia site, Italy) Fincantieri Marine Group LLC (Head Office - Green Bay, registered office and site, Sturgeon Bay, Wisconsin), Vard Tulcea SA (registered office and site, Tulcea, Romania) and Isotta Fraschini Motori SpA (registered office and site, Bari, Italy) , which were selected on the basis of their activities, their contribution to the performance indicators at a consolidated level and their location, we carried out site visits during which we met local management and gathered supporting documentation regarding the correct application of the procedures and calculation methods used for the key performance indicators.
Conclusions
Based on the work performed, nothing has come to our attention that causes us to believe that the NFS of the Fincantieri Group as of 31 December 2019 has not been prepared, in all material respects, in compliance with articles 3 and 4 of the Decree and with the GRI Standards.
Trieste, 20 April 2020 | |
PricewaterhouseCoopers SpA | |
Signed by | Signed by |
Maria Cristina Landro | Paolo Bersani |
(Partner) | (Authorised signatory) |
This report has been translated from the Italian original solely for the convenience of international readers. We have not performed any controls on the NFS 2019 translation.
208
Parent Company
Registered office Via Genova no. 1 - 34121 Trieste - Italy Tel: +39 040 3193111 Fax: +39 040 3192305 fincantieri.com
Share capital Euro 862,980,725.70
Venezia Giulia Company Registry and Tax No. 00397130584 VAT No. 00629440322
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Fincantieri S.p.A. published this content on 20 April 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 04 May 2020 17:43:05 UTC