Consolidated Non-Financial Statement Pursuant to Legislative Decree no. 254/2016 Sustainability Report 2017 Consolidated Non-Financial Statement
Contents Letter to Stakeholders ...... 4
Methodology ...... 5
Summary statement of Group companies ...... 7 CHAPTER 1 – GEDI Gruppo Editoriale S.p.A...... 9
Group Profile ...... 9 The Group’s commitment to sustainability ...... 16 Governance and integrity ...... 18 The media industry and the Group’s business model ...... 23 Group economic performance ...... 26 CHAPTER 2 - Informing the citizen-reader and responsibility to the general public ...... 30
Content quality ...... 30 Independence and editorial responsibility ...... 30 Responsible advertising and marketing ...... 32 Privacy and data protection ...... 33 CHAPTER 3 - Social role and participation in the community ...... 35
Publishing initiatives ...... 35 Radio initiatives ...... 39 CHAPTER 4 - Focus on human resources ...... 42
Working conditions and practices ...... 42 Diversity and equal opportunities ...... 45 Enhancement and development of skills ...... 46 Worker health and safety ...... 47 CHAPTER 5 - The Group’s environmental impact ...... 49
Management of paper and other raw materials ...... 49 Energy and emissions ...... 50 Group water consumption ...... 54 Waste management ...... 54 Environmental impact of distribution and logistics ...... 56 Attachments ...... 57
Human Resources ...... 57 Training ...... 58 2
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Health and safety ...... 59 Environment ...... 59 Table illustrating the reconciliation of material aspects and GRI-G4 ...... 61 Scope of material aspects of the GEDI Group ...... 62 GRI Content Index ...... 63 Report of the Independent Auditor ...... Errore. Il segnalibro non è definito.
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Letter to Stakeholders
Marco De Benedetti Monica Mondardini
Chairman of GEDI Gruppo Editoriale S.p.A. Managing Director of GEDI Gruppo Editoriale S.p.A.
GEDI Gruppo Editoriale S.p.A. is committed to offering information, culture, commentary and entertainment through its media in accordance with the principles of independence and freedom, with the awareness of the role that this activity plays in the formation of the citizen-reader’s ethical and moral values.
The Group’s mission is also to create value for all stakeholders by devoting the required attention to financial stability within an adverse market environment, while offering quality products based on highly socially and environmentally sustainable management decisions. In order to account for our activities on the subject of sustainability, for the fourth consecutive year we are publishing a report prepared according to the international guidelines “G4 Sustainability Reporting Guidelines” and “Sector disclosures media”, both of which were published in May 2013 by the GRI (Global Reporting Initiative) in compliance with the “Core” application level.
In this document, we adopt a format recognised at European level through which we address various issues based on these themes: the Group’s commitment to informing the citizen-reader and its responsibility to the general public; social role and participation in the community; focus on human resources; and environmental impacts.
The Group will always retain a keen focus on these aspects of corporate life, aware of their importance in the creation of value both in economic and systemic terms.
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Consolidated Non-Financial Statement
Methodology This document is the consolidated non-financial statement (the “NFS” or “Sustainability Report”) prepared to fulfil the obligations provided for by Articles 3 and 4 of Legislative Decree no. 254/16 (“the Decree”) by GEDI Gruppo Editoriale S.p.A. its consolidated companies (“GEDI” or the “Group”) and aims to transparently describe the initiatives and main results achieved in terms of sustainability performance in the 2017 financial year (from 01 January to 31 December).
The NFS covers - to the extent necessary to provide a clear understanding of the activities, trends, results and impacts of the business - the environmental and social themes regarding employees, human rights and the fight against active and passive corruption which are relevant to the activities and characteristics of the Group, as illustrated in the materiality index provided in this document. Following the analysis to ascertain relevancy of the themes covered by Article 3 of Legislative Decree no. 254/2016, respect for human rights was not deemed significant for the purposes of representation in this NFS.
This NFS has been prepared in accordance with the “G4 Sustainability Reporting Guidelines” and the “Sector Disclosures - Media”, both published in May 2013 by the Global Reporting Initiative (GRI) in compliance with the “Core” application level, taking into consideration the information deemed significant for Stakeholders and based on the reporting principles provided in the guidelines. The “GRI Content Index” with details of the content reported in accordance with the GRI is annexed to this document. Furthermore, for the preparation of the document, reference has been made to the Guidelines for non-financial disclosure issued by the European Commission.
The data and information contained in the NFS refers to all companies of the GEDI Group as at 31 December 2017, consolidated according to the integral approach (any exceptions, in addition to the information provided below, are expressly indicated in the text). With reference to the changes to the ownership structure or the dimension of the Group which took place in 2017, it is noted that on 27 December 2017, with effectiveness from 29 December, the merger by incorporation of ITEDI S.p.A. into Finegil Editoriale S.p.A., now GEDI News Network S.p.A., was signed.
The process to collect the data required for the preparation of the NFS involved various Group company departments and was carried out according to the principles of balance, comparability, accuracy, timeliness, clarity and reliability expressed in the GRI Guidelines.
In order to ensure the comparability of the data and information over time and to assess the trend of the Group’s activities over a certain period, wherever possible accounting data for the 2015 and 2016 reporting periods has been provided. Furthermore, the document includes information relative to previous accounting years which is still of relevance at 31 December 2017.
Moreover, it is noted that any estimated quantitative data is duly identified as such. Estimates are based on the most accurate information available or on sample surveys.
The Board of Directors of GEDI Gruppo Editoriale S.p.A. approved the NFS on 05 March 2018 and amended it on 29 March 2018.
This document has been subjected to a compliance review (“limited assurance engagement” according to the criteria of standard ISAE 3000 Revised) by KPMG SpA. The review was carried out according to the procedures indicated in the “Report of the Independent Auditor” included in this document.
The Consolidated Non-Financial Statement is produced on an annual basis. The previous Sustainability Report was published on 09 June 2017.
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The NFS is also available on the website of the GEDI Group (www.gedispa.it) in the “Sustainability” section.
CONTACTS For comments, requests, opinions and areas of improvement in the work performed as regards GEDI’s corporate responsibility and on the information in the Sustainability Report, contact the following:
EXTERNAL RELATIONS HEAD OFFICE DIVISION Stefano Mignanego: [email protected] Franca Prest (Press Office): [email protected]
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Summary statement of Group companies Parent Company GEDI Gruppo Editoriale S.p.A. formerly Gruppo Editoriale L’Espresso S.p.A.
Subsidiaries consolidated with the global integration method
• A. Manzoni & C. SpA • Elemedia SpA • GEDI News Network SpA, formerly Finegil Editoriale SpA • Mo-Net Srl • Gedi Digital srl • GEDI Printing SpA, formerly Rotocolor SpA • GEDI Distribuzione SpA, formerly Somedia SpA
The Extraordinary Shareholders’ Meeting of GEDI SpA of 27 April 2017 resolved to increase share capital with the exclusion of option rights, pursuant to Article 2441, paragraph 4, point 1 of the Italian Civil Code, for a total value of Euro 79,969,000.00, of which 14,497,678.65 to be allocated to nominal share capital and Euro 65,471,321.35 to be allocated to share premium, through the issue of 96,651,191 new ordinary shares, each with a nominal value of Euro 0.15 and a unit price of Euro 0.827397978 per share (of which Euro 0.677397978 refers to share premium), released through the conferment in kind by Fiat Chrysler Automobiles N.V. and Ital Pres Holding S.p.A., each within their respective powers, of shareholdings representing the entire share capital of Italiana Editrice S.p.A.
This capital increase was carried out and released on 27 June 2017. On this date, the market price of the 96,651,191 new shares was Euro 0.8655 per share, for a total transaction value of Euro 83,651,605.81, of which Euro 14,497,678.65 was recorded as a share capital increase (nominal unit share value of Euro 0.15) and Euro 69,153,927.16 was recorded to share premium (unit value of Euro 0.7155).
Subsequently, with reference to the merger between the GEDI Group and the ITEDI Group, in line with the corporate model of the GEDI Group which is followed for all economic activities of a similar nature carried out by each individual company, in order to create a bilateral correspondence between the different business lines and the different legal entities, the following actions were taken:
1) the newspaper publishing activities carried out by Itedi Spa and Finegli Editoriale Spa, now GEDI News Network, were merged into a single company;
2) the printing activities carried out by Itedi SpA and Rotocolor SpA, now GEDI Printing SpA, a company that already represents the industrial hub of the Group, were merged into a single company;
3) Publikompass SpA and A.Manzoni & C. SpA were merged into a single company, given that both carry out advertising agency activities;
4) the IT and digital activities carried out by Nexta Srl and the digital branch of Elemedia SpA were merged into a single company, maintaining the separation between the radio broadcasting activities carried out by Elemedia SpA.
In particular:
• on 25 September, the deed of conferment of the Printing Branch of ITEDI (relative to the Turin printing plant) to Rotocolor SpA, now GEDI Printing SpA, with effectiveness from 01 October, was finalised.
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• on 25 October, the merger agreement of Publikompass SpA into A.Manzoni & C. SpA, with effectiveness from 1 November, was signed, thus finalising the merger of the two advertising agencies into A. Manzoni & C. S.p.A.;
• on 25 October, with effectiveness from 1 November, the demerger agreement of the digital branch of Elemedia SpA into Nexta Srl, which was renamed GEDI Digital Srl, was signed;
• finally, on 27 December, with effectiveness from 29 December, the merger by incorporation of ITEDI into Finegli Editoriale SpA, now GEDI News Network SpA, was signed.
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CHAPTER 1 – GEDI Gruppo Editoriale S.p.A.
Group Profile
The main activities of GEDI
GEDI Gruppo Editoriale S.p.A. is one of the most important Italian companies in the media industry and operates in the daily and periodical press and publishing sectors, radio, advertising sales, internet and television. GEDI is listed on the Milan Stock Exchange and publishes La Repubblica, La Stampa, Il Secolo XIX, 13 local newspapers, the weekly magazine L’Espresso and other magazines. Three national broadcasters (Radio Deejay, Radio Capital, m2o) and various music TV networks are also part of the Group. Furthermore, GEDI operates in the internet sector and sells advertising through the agency Manzoni for its own purposes and for third-party publishers.
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La Repubblica The “Repubblica Division” handles the development, production and 193 THOUSAND COPIES OF marketing of publishing products relating to the “La Repubblica” newspaper. THE PAPER NEWSPAPER La Repubblica is one of most important newspapers in Italy and is a leader in DISTRIBUTED IN 2017 terms of distribution and readership. In 2017, 193.9 thousand paper copies were distributed, of which 178.4 were sold at news-stands or through subscriptions. It can contain up to 96 pages, all in colour (including advertisements). The newspaper has a national section present in all versions and nine local editions (Rome, Milan, Turin, Bologna, Genoa, Florence, Naples, Palermo and Bari) containing up to 32 pages. La Repubblica is a newspaper registered and printed in Rome and is transmitted to eight printing hubs.
A new cultural supplement for the newspaper, Robinson, was launched at the end of 2016, available at news- stands every Sunday, with 40 pages dedicated to stories, critiques, events, places, reports, people and debates.
The following supplements are published and distributed along with La Repubblica:
Affari & Finanza (Economy/Business community) Il Venerdì (Lifestyle and television) D - La Repubblica (Women and fashion) Trova Roma (Guide, shows and entertainment) Tutto Milano (Guide, shows and entertainment)
LA STAMPA and IL SECOLO XIX La Stampa is one of the most distributed newspapers in Italy. In 2017, 146.1 thousand paper copies of La Stampa were distributed, of which 140.0 were sold at news-stands or through subscriptions.
Il Secolo XIX is the historic newspaper of the Liguria region. In 2017, 42.7 thousand paper copies of Il Secolo XIX were distributed, of which 41.4 were sold at news-stands or through subscriptions.
Local newspapers As a result of the deconsolidation operations, in 2017 GEDI IN 2017, THE LOCAL NEWSPAPERS publishes 13 local newspapers, which reach 1.9 million readers HAD AN OVERALL AVERAGE every day. CIRCULATION OF 199.5 In 2017, 199.5 thousand paper copies of local newspapers were THOUSAND COPIES A DAY distributed, of which 195.9 were sold at news-stands or through subscriptions.
Corriere delle Alpi - Belluno la Nuova Ferrara – Ferrara Gazzetta di Mantova - Mantua Il Piccolo - Trieste Gazzetta di Modena - Modena la Provincia Pavese - Pavia Gazzetta di Reggio - Reggio Emilia Il Tirreno - Livorno il Mattino di Padova - Padua la Tribuna di Treviso - Treviso Messaggero Veneto – Udine la Sentinella del Canavese – Three-weekly la Nuova di Venezia e Mestre - Venice newspaper of Ivrea
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Periodicals The following magazines are part of the “Periodicals Division”: L’Espresso (weekly) National Geographic Italia (monthly) IN 2017, L’ESPRESSO CONSOLIDATED Le Scienze (monthly) ITS LEADING POSITION IN THE NEWS Mente & cervello (monthly) Limes (monthly) MAGAZINES CATEGORY WITH 1.4 MicroMega (every two months) MILLION READERS Le Guide di Repubblica Le Guide dell’Espresso (yearly)
L'Espresso was founded in 1955 and the story of the Group that bears its name began. L’Espresso is a weekly magazine covering culture and politics, representing a point of reference for widespread and important segments of Italian public opinion. Its central editorial team is based in Rome and in 2017 it had 1.4 million readers. A new marketing formula was launched on 7 August 2016 for L’Espresso, which is sold every Sunday, bundled with the newspaper La Repubblica.
The digital sector The “Digital Division” oversees the management and digital WITH AN AVERAGE OF 2.2 MILLION development of the trademarks of the GEDI Group across all digital platforms (desktop, mobile, tablet, smart TV and latest USERS PER DAY, IN 2017 THE GROUP generation devices), as well as the diversification of the CONFIRMED ITS POSITION AS THE EIGHTH activities of the GEDI Group into new digital operations outside LARGEST OPERATOR ON THE ITALIAN the current perimeter. The distribution strategy is differentiated DIGITAL MARKET by platform and considers both free and premium models: the specificity of readers’ information needs on the various platforms and the long-term optimisation of value are drivers for the choice of model.
The Digital Division is therefore responsible for the development and online management of all of the Group’s main brands, particularly Repubblica.it, Repubblica +, the new premium product Rep, the online version of La Stampa, Il Secolo XI and the 13 local newspapers and a broad collection of entertainment websites ranging from the Group’s web radio stations to vertical film and television websites like Mymovies and Tvzap, as well as important international partnerships such as Huffington Post Italia and Business Insider Italia.
In 2017, the La Stampa and Il Secolo XIX daily newspapers will further enrich the digital offer on desktop and mobile devices, with news free and premium platforms and themed vertical channels. The online newspapers record an average of 40 million unique users a month.1
The digital activity of the local newspapers is particularly active, with the initiative “Noi Messaggero Veneto” achieving particular success. Registered users can access exclusive content, participate in regional events and take advantage of special discounts.
1 Source: Webtrekk 2017
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Consolidated Non-Financial Statement
Radio Over the last twenty years, GEDI has developed its activities in the radio sector. This activity is currently carried out by Elemedia S.p.A, which holds the concessions for three national radio broadcasters:
Radio Deejay Acquired in 1989, Radio Deejay is one of the most listened to radio stations in Italy with an average of 5.2 million listeners per day2. It is the radio station for those who want to have fun with its popular hosts and keep up to date with the latest music trends.
Radio Capital Acquired in 1997, Radio Capital is characterised by the quality of information and its musical programming based on the major hits of the 1970s, 1980s, 1990s and early 2000s. In 2017, it had an average of 1.6 million listeners per day2.
m2o Launched in late 2002, m2o has a lively direction and musical programme, characterised officially by the slogan “Musica allo stato pure”: music in its pure state. In 2017, it had an average audience of 1.7 million listeners per day2.
In the course of 2017, GEDI S.p.A. acquired a 10% stake in the share capital of Radio Italia S.p.A., editor of the broadcaster Radio Italia Solo Musica Italiana (5.2 million listeners per day on average)2.
Television The Group is active in the theme-based TV sector and broadcasts on Sky’s satellite platform:
Radio Capital TV Television channel viewable on channel 713 of Sky’s satellite platform. Broadcasts music video clips from the 1970s up to 2000.
My Deejay Music TV channel airing on Sky satellite channel 714 featuring the videos of the most popular songs of the moment taken from the music programmes of Radio Deejay.
m2o TV Television viewable on channel 712 of Sky’s satellite platform.
Furthermore, at the end of 2017 GEDI reinstated its own television station on channel 69 of digital terrestrial TV: Deejay TV, the music channel airing music from Radio Deejay, the best video clips and live broadcasts of Deejay Chiama Italia. The channel began broadcasting on 15 January 2018.
2 Source: Radio Ter survey, 2017
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Advertising Manzoni & C. is the exclusive advertising agency for the publications of the GEDI Group and a selected group of third party publishers. Manzoni is one of the top agencies on the Italian advertising market. Manzoni’s strength lies in its top quality multimedia portfolio, with leading newspapers in the main market segments and a broad customer consulting and support network. The experience of Manzoni’s sales organisation, which is structured into specialist sales networks focused on the different media, guides and directs companies when choosing the commercial offers that best meet their communication objectives. Aside from its sales service and its flexible and structured advertising solutions, Manzoni provides its customers with a system of information, databases, case studies, analyses and original market research.
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Key historical milestones
1955 the “L’Espresso” publishing company, N.E.R. (Nuove Edizioni Romane), is founded. 1965 colour is used for the first time for editorial photos and adverts. 1967 colour supplements are introduced and the circulation of “L’Espresso” grows to over 100,000 copies per issue.
1970 the “L’Espresso Economia & Finanza” supplement is introduced; the circulation of “L’Espresso” exceeds 130,000 copies; as part of a joint venture with “Scientific American”, publishing of the Italian version of the “Le Scienze” monthly begins. 1975 the company changes its name to “Editoriale L’Espresso”; circulation of the weekly grows to over 300,000 copies per issue. 1976 the daily newspaper “La Repubblica” is launched. 1977 Editoriale L’Espresso begins acquiring controlling interests in a number of local newspapers.
1979 circulation of daily “La Repubblica” grows to 180,000 copies per issue.
1984 Editoriale L’Espresso is listed on the Stock Exchange and Finegil, a holding company for the local newspapers, is created with a 50% stake sold to Mondadori. 1985/1989 the Repubblica supplements “Affari & Finanza” (1986) and “Il Venerdì” (1987) are launched, as is local newspaper “il Centro”; the Espresso Group acquires a 50% stake in Radio Deejay (1989). 1989 Mondadori acquires control over Editoriale L’Espresso.
1991 the Espresso Group is founded with the CIR Group as its majority shareholder; Editoriale La Repubblica is listed on the Stock Exchange. 1992 the Group acquires the entire share capital of A.Manzoni & C.. 1994 the Monday edition of La Repubblica is launched. 1995 two new supplements (“Musica, rock & altro!” and “Salute”) are launched together with the new women’s magazine “D - la Repubblica delle Donne”, and Repubblica introduces colour printing for the front page and advertisements. 1996 the website Repubblica.it is launched on a trial basis and from 1997 is online 24 hours a day. 1999 the Group adopts a strategy of investing in the internet, digital TV and radio sectors.
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2000 the Group focuses on digital content and web solutions.
2004 Repubblica concludes its “full colour” investment, which makes it possible to print all 96 pages of the daily in colour.
2005 the Group completes its multimedia presence and is able to reach the public with its content via multiple platforms and through different methods of access.
2007 Repubblica launches the new R2 section with investigations, dossiers and reports; L’Espresso updates its cover and graphic design.
2010 the Group’s digital offer is enriched with new products and the websites of L’Espresso and the local newspapers are redesigned. 2011 the sections of Repubblica.it dedicated to economics and finance are redesigned and the journalistic coverage of the website is extended to 24 hours a day; video production is increased; finally, specific products are created for tablets and smartphones. 2012 Huffington Post Italia is set up, a joint venture between AOL and the Group. 2014 the Group concludes the integration of digital terrestrial network operator activities with Telecom Italia Media and refinances the company through the placement of a five-year convertible bond. 2015 the Group strengthens its leadership at digital level and Repubblica.it consolidates its position as Italy’s leading news site and one of the most authoritative at international level.
2016 the Espresso Group and ITEDI (publisher of La Stampa and Secolo XIX) sign an agreement for the merger of the two companies, targeted at creating a leading Italian publishing group.
2017 the Group finalises the merger agreement between GEDI Gruppo Editoriale and ITEDI Italiana Editrice, the parent company of the newspapers La Stampa and Il Secolo XIX. As well as benefiting from the addition of a leading national newspaper such as La Stampa, this operation extends the Group's regional and local presence in Piedmont and Liguria in the north-west of Italy. Furthermore, GEDI Digital acquires the usage license of the trademark Business Insider Italia, the website which broke through the barrier of traditional news in the United States and which in just a few years succeeded in attracting millions of unique users each day. Repubblica’s new premium digital product, Rep, a subscription-based news website, is launched.
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The Group’s commitment to sustainability In recent years, GEDI has embarked upon an important journey of sustainability with the aim of guaranteeing a balance between the different Group activities and their environmental, social and economic impacts on the environment and society.
This approach takes shape in the development of a trusting relationship between the Group and its stakeholders, in which it pursues its objectives by seeking to reconcile the interests involved in compliance with the law and the principles of honesty, impartiality, reliability, fairness, integrity, transparency and good faith, while guaranteeing the full respect and protection of human life.
Group stakeholders and engagement activities GEDI maintains an open dialogue with its numerous reference stakeholders which operate within the scope of its activities.
The Group has created a detailed map of its stakeholders, identifying their degree of influence/dependence and analysing how relevant the specific sustainability issues relating to the sector and the reference context are to them. A map showing the 13 clusters of stakeholders identified is provided below.
Map of Espresso Group Stakeholders
To pursue the company’s objectives, it is fundamental to develop forms of dialogue and ongoing interaction with internal and external stakeholders in order to understand their various requirements, interests and expectations. In particular, within the dynamic and competitive scenario of intense change pervading the publishing industry and the media, being capable of anticipating change and identifying emerging trends through stakeholder dialogue enables the Group to generate shared, ongoing added value over the long term.
This is why GEDI works every day to establish trusting relationships with its stakeholders, based on the principles of transparency, openness and listening. The Group’s stakeholder communications approach has evolved continuously over time, giving rise to a range of initiatives aimed at making the best use of the multiple channels available. One example of this constant, in-depth stakeholder engagement process is the series of activities carried out by the External Affairs head office division, which is responsible for managing relationships between the Group and the media primarily as regards corporate communications and handling
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Consolidated Non-Financial Statement relationships with other Group stakeholders. In addition, the Investor Relations office handles the flow of information targeted at shareholders, financial analysts and institutional investors, in observance of the rules established for the disclosure of company information and documents. The company has always taken active steps to establish and maintain effective dialogue with its shareholders and the market.
Materiality analysis GEDI has carried out a materiality analysis to identify sustainability topics of relevance to the Group and its stakeholders. For this purpose, internal workshops were conducted to identify stakeholder expectations regarding GEDI’s business with the aim of stimulating reflection on the Group’s approach to sustainability. The participants made a significant contribution to identifying the main impacts that the Group’s activities have on the various stages of the value chain. The main themes which emerged from the Group's materiality analysis concern five key areas: Economic and Business Responsibility, Governance and Compliance, Product Responsibility, Responsibility to Employees and Environmental Responsibility.
This analysis made it possible to identify the aspects deemed material, i.e., which have significant impacts for the organisation from an economic, environmental and social perspective, and which substantially influence stakeholder assessments and decisions. Indeed, combining a strategic business approach with stakeholder expectations is key to enabling the Group to continue to generate shared value in the short, medium and long term. This analysis was carried out in compliance with the criteria defined by the Global Reporting Initiative (GRI - G4).
In 2017, the GEDI materiality analysis was updated following a desk study, in order to highlight any changes in the publishing sector in terms of the impact on the Group and its stakeholders. The analysis considered various reports of competitors and companies representing best practices operating in the publishing sector, relevant studies and publications and the topics covered by Legislative Decree no. 254/16. Following this analysis, changes were proposed to the positioning of the issues of the previous materiality index and discussed with the representatives of the main corporate departments involved in the process of preparing the report. GEDI materiality matrix
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Governance and integrity
The Governance model The GEDI Gruppo Editoriale S.p.A. corporate governance system makes it possible to achieve strategic objectives by ensuring effective governance that complies with institutions and laws, and which is efficient and fair towards all stakeholders. This system is based on the principles and criteria expressed by the Code of Best Practice published in 2006 by the Borsa Italiana Corporate Governance Committee and of which GEDI Gruppo Editoriale S.p.A. drafted its own version, published in the Report on Corporate Governance and ownership structures. The company adopted this model on 21 February 2007. At that time, among other decisions made, the positions of Executive Director in charge of the internal audit system, head of internal auditing and lead independent director were established. The extraordinary shareholders’ meeting held on 18 April 2007 amended the articles of association so as to acknowledge the legislative innovations regarding company law. The various changes included the introduction of list voting for the appointment of the Board of Directors, minimum thresholds for the presentation of the lists and the position of executive appointed to draw up the company accounting documents. Subsequently, the extraordinary shareholders' meeting of 20 April 2011 adopted the necessary resolutions to complete the adjustment of the articles of association to Italian Legislative Decree no. 27 of 27 January 2010, a process undertaken by the Board of Directors on 20 October 2010. On this occasion, the articles of association were amended in order to incorporate the required provisions as well as to eliminate all regulatory references superseded by the Shareholders’ Rights regulation, also with reference to the company’s adoption of the Procedure for Related-party Transactions. Lastly, due to the amendments introduced to the Consolidated Law on Finance by Italian Law no. 120 of 12 July 2011 (“Gender Balance”) concerning equal access to the boards of directors and internal audit bodies of companies listed in regulated markets, on 18 April 2013 the Board of Directors made the required amendments to the articles of association in order to bring them into line with regulations in force. Subsequently, the Extraordinary Shareholders’ Meeting of 27 April 2017 resolved, among other things, to change the Group name from Gruppo Editoriale L’Espresso S.p.A. to GEDI Gruppo Editoriale S.p.A. (GEDI S.p.A.).
GEDI’s governance system consists of the following corporate boards and committees: the Board of Directors, the Board of Statutory Auditors, the Internal Committees and the Shareholders’ Meeting.
The Board of Directors was appointed on 23 April 2015; directors serve for a period of time established by the Shareholders’ Meeting when appointed and in any case for no longer than three years. They can also be reappointed. The mandate of the current Board will expire on approval of the Financial Statements as at 31 December 2017. During the year under review, on 23 June 2017 the Chairman Carlo De Benedetti resigned as Chairman and Director. Pursuant to Article 2386 of the Italian Civil Code, the Meeting of the Board of Directors held on the same date co-opted as Director Marco De Benedetti, appointing him as Chairman of the Board of Directors.
The Board also resolved to appoint Carlo De Benedetti as Honorary Chairman of the Company.
Furthermore, the Shareholders’ Meeting of 27 April 2017 resolved to increase the number of Board members from eleven to fourteen with the appointment of Elena Ciallie, John Philip Elkann and Carlo Perrone, until the end of the current mandate of the Board of Directors and therefore until the Shareholders’ Meeting that will approve the Financial Statement for the year ended 31 December 2017. Such resolutions entered into force from 27 June 2017, the date of effectiveness of the share capital increase agreed by the Extraordinary Shareholders’ Meeting of 27 April 2017, in view of the merger with the ITEDI Group described in more detail on page 7.
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At the end of the financial year to which this Sustainability Report refers, the Board of Directors had fourteen members and was composed of 64% men and 36% women.
Composition of the Board of Directors as at 31.12 2017
Name Position Executive Non-executive Independent Marco De Benedetti Chairman √ Monica Mondardini Managing Director √ Massimo Belcredi Director √ √ Agar Brugiavini Director √ √ Elena Ciallie Director √ √ Alberto Clò Director √ √ Rodolfo De Benedetti Director √ Francesco Dini Director √ John Philip Elkann Director √ Silvia Merlo Director √ √ Elisabetta Oliveri Director √ √ Luca Paravicini Crespi Director √ √ Carlo Perrone Director √ Michael Zaoui Director √ √
The Independent Directors represent the majority of the Board of Directors and the number and authoritativeness of the same is such that it guarantees that their opinion may have a significant influence on the adoption of board decisions, contributing to the formation of balanced decisions especially in the event potential conflicts of interest exist. Most GEDI directors are over 50 years old.
Internal control and risk management system The internal control and risk management system is the set of rules, procedures and organisational structures designed to permit, through a suitable identification process, the measurement, management and monitoring of the company’s main risks.
This system, as outlined in the Report on Corporate Governance and ownership structures that can be consulted in the “Governance” section of the corporate website, is based on the general principles and guidelines approved by the Board of Directors and subdivided as follows:
A. Control and Risk System which, in addition to the principles expressed in the guidelines, includes the provisions of the articles of association and internal regulations in the area of the allocation and delegation of responsibilities, the system of delegation, procedures and risk areas mapped by the Organisational Model and, finally, risk assessment goals and methods;
B. Tasks of the bodies and functions of the Control and Risk System, which defines the functions responsible for the Control and Risk System in terms of their roles and expertise and in accordance with the indications in the guidelines and in the applicable legislative, regulatory and internal provisions;
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C. Risk management, which is structured into three different levels of control distinguishing between internal departments, which identify risks and carry out management actions, risk management departments, which carry out constant analysis and monitoring, and the Internal Audit department, which oversees the functioning of the System and provides independent assessments.
The definition of the nature and the level of risk compatible with the company’s goals is the responsibility of the Board of Directors, following the opinion of the Control and Risk Committee; to this end, the suitability of the internal control and risk management system with respect to the characteristics of the business and the risk management profile assumed is assessed at least once a year.
The assessment, discussion and definition among the Board of Directors of the nature and level of risk compatible with the Group's business objectives is implemented through a critical analysis of the assessment of probability/impact performed by the Risk Manager and previously assessed by the Control and Risk Committee in consideration of risk parameters connected to different analysis perimeters.
In the course of the year, for the purposes of the aforementioned activities, in close collaboration with the Process managers and the Manager of the Internal Audit Department, the Risk Manager carries out a complete risk review and constantly monitors risks, also taking into account the changes in organisational and corporate scope.
Specifically, the activities of the Risk Manager consist of the following actions:
a. mapping of company processes and implementation of the relative updates, when necessary; b. annual identification of internal and external risks in reference to individual processes; c. measurement of risks in terms of probability/impact and assessment of the effect on different affected perimeters; d. analysis of risk mitigation factors and consequently the residual risks to which the Company is exposed; e. presentation of the results of these actions to the Control and Risk Committee for review and preliminary discussion, prior to the presentation of the same to the Board of Directors.
The aforementioned activities are carried out according to the guidelines of the “ERM - Enterprise Risk Management” framework published by the “Committee of Sponsoring Organisations of the Treadway Commission” (COSO report).
Anti-Corruption and 231 Model
Application of the 231 Model In order to ensure correctness and transparency in the performance of its business and company activities and to prevent the crimes envisaged by Legislative Decree no. 231/2001, the Company and its subsidiaries have adopted an “Organisational, Management and Control Model” that is periodically updated in order to ensure the continuous correspondence of the same with any changes to legislation or the company structure. The document is composed of a “General Part” which, as well as referencing the principles of Legislative Decree no. 231/01 and the guidelines issued by Confindustria, illustrates the key content, employee training methods and the dissemination of the same within the company. It is followed by a “Special Part” which includes the map of the sensitive areas, the Code of Ethics, the code of conduct, the general principles of the internal control system and the control protocols developed for all at-risk company processes. In particular, the protocols highlight the crimes that can be committed in relation to individual processes, provide guidance on conduct and outline specific control activities to largely eliminate the relative risks of crime. An extract from the Model can be viewed in the “Governance” section of the corporate website. 20
Consolidated Non-Financial Statement
On 27 July 2016, the company’s Board of Directors approved the revision of the Organisation, Management and Control Model pursuant to Italian Legislative Decree 231/01, proposed in agreement with the Supervisory Body and based on prior approval by said entity.
The amendments made were assessed as part of and following a wider process of revision and updating of the organisational models of all subsidiaries and/or associates.
The amendments introduced mainly concern:
• the general part of the Model, in which the themes relating to the composition and functioning of the Supervisory Body were examined in depth, as well as the penalty system and the adoption of models within the Group’s entire structure;
• the special part of the Model, revised in view of a more marked centrality of the applicable offence, also based on what was also recorded in the Matrix of Areas subject to Risk-Offence.
A Single Index was also defined, in order to make the various Special Parts of the Model consistent with one another.
Each Special Part is divided into four sections:
1. offences applicable to the company: this section reports the offences, relevant for the purposes of the regulations set out in Italian Legislative Decree 231/01, applicable to the company and the relevant associated regulation;
2. sensitive activities: this section reports the company activities potentially exposed to the commission of offences. These activities are also reported in the Matrix of Activities subject to Risk-Offence;
3. behavioural rule: this section indicates, for each category of offence, the general principles of conduct that recipients must observe, in order to avoid offences from being committed.
4. specific control principles: this section lists, for each of the processes identified, the specific control principles governing commission of the offence. From this perspective, within the different Special Parts and based on each process, additional control principles have been identified with respect to those reported in the previous version of the Model.
In addition, as part of the revision of the Organisational Model, some minor changes were also made to the company’s Code of Ethics.
Similarly, during the year other Group companies approved the revision of the current Organisational Models, in line with the resolutions taken by the Parent Company.
Training provided on 231 and anti-corruption The Group provides both general training on issues pertaining to the 231 Model for its employees and more specific training for employees that work in specific risk areas, the supervisory body and those responsible for the internal audit. The content and frequency of the training courses are defined on a case by case basis, and checks are also carried out on attendance levels and the quality of the content of the courses. Participation in training courses is compulsory. In 2017, a total of 117 hours of anti-corruption training were provided.
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Consolidated Non-Financial Statement
Specifically, for 2018 the Group envisages a specific online and lecture-based training programme for 231 issues, including in view of the amendments made to the Organisational Models of Group companies.
The Group promotes the awareness and observance of the Model, including amongst consultants, the various types of freelance associates, contracting businesses and their employees, self-employed workers who work for the Group, customers and suppliers.
In this regard, in 2017 no episodes of corruption were reported or identified.
The Code of Ethics and its distribution The Code of Ethics is the set of ethics/behavioural rules that are transmitted to all employees on an ongoing basis, the consistent application of which is continuously monitored, which clearly and transparently defines the set of values that inspire the Group for the achievement of its objectives. Therefore, the activities of all Group companies must comply with the principles expressed by the Code. GEDI Gruppo Editoriale S.p.A. recognises the importance of ethical and social responsibility in the management of business affairs and activities, and is committed to respecting the legitimate interests of its stakeholders and the general public. At the same time, it asks its employees and those who work within the Group companies to comply with the company’s rules and the tenets established in this Code.
The Group has made a formal commitment to promoting awareness of the content of the Code of Ethics and the applicable company processes amongst all employees: all new employees are given a copy of the Code of Ethics. A similar awareness-raising activity on the values and principles expressed in the Code of Ethics is carried out among freelance associates, suppliers and customers of all types.
In addition to a universal Code of Ethics applicable to the entire Group, in 2017 the Repubblica Code of Ethics was published. The founding principles of this Code of Ethics are precision, credibility and transparency: these are the core values of a news service based on readership trust, an increasingly important factor in times of great scepticism fuelled by the presence of fake news and an extremely vast range of sources where the search for quality content has become increasingly complicated.
Specifically, La Repubblica has outlined specific standards aimed at providing traceable news which corresponds to precise ethical principles in order to guarantee its contents. To do so, La Repubblica has signed up to the Trust Project, an international consortium of media and digital companies, introducing into its own digital content the “trust indicators” which help readers to choose high quality, traceable information certified according to the code established by the organisation and shared with partners.
The Code of Ethics, the values of the newspaper and its commitments to the readership and public opinion are available for on the La Repubblica website.
Other information - Compliance As regards the existence of preliminary surveys relevant to the provisions of Legislative Decree no. 231/01 in relation to the crimes pursuant to Article 640, paragraph 2, point 1 of the Italian Criminal Code, please refer to the information provided in the Management Report - Significant Events after the close of the financial year and business outlook, and in the Explanatory Notes no. 5 and 7 of the Financial Statement and Consolidated Financial Statement as at 31.12.2017 respectively.
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Consolidated Non-Financial Statement
The media industry and the Group’s business model
The business model and strategy GEDI has decided to concentrate its efforts on a strategy developed around four main points:
1. aiming for development by strengthening the traditional business with ongoing revisions of its publishing products, but also taking advantage of all new opportunities that the market may offer;
2. expanding and improving the content offering of its brands on new digital platforms, taking the industry’s ongoing evolution towards digital into close consideration;
3. affirming its position within the advertising market in accordance with the guidelines put in place by the internal agency;
4. maintaining the company's profitability within the context of a global recession which has negatively impacted turnover, focusing on costs and corporate reorganisation.
The digital evolution In the last few years, the world of media has been undergoing a pronounced shift towards digitalisation; technology has moved from fixed computers to smartphones which, in due course, have developed hand in hand with social media networks. To meet the new requirements of its users in the most effective way, since the 2000s GEDI has gradually embarked on a digital evolution that encompasses the development of new products, company processes and the organisation’s day-to-day activities.
In 2017, GEDI’s Digital Division structured research and development activities into five main projects:
1. In the context of its activities on the new digital platforms, in 2017 the development phase was completed and the new native digital product Rep was launched: Rep is based on the Progressive Web App methodology combined with Google’s AMP platform. This led to the creation of an innovative product optimised for offline mobile use. The product was cited as a leading example of innovation at the Google Developer Days event held in Bangalore in 2017. 2. In terms of video, in 2017 an important agreement was signed with YouTube for the use of its video players on GEDI web domains. The video streaming servers were updated and the Wochit platform was developed further, extending its remit to all GEDI local publications. 3. As regards technology, the GEDI Digital Division approved the funding for two projects in two editions of Google’s Digital News Innovation Fund, with the proposal of two highly innovative digital and editorial initiatives. The first, “Thriving News”, regards the development and creation of a platform to optimise the publishing activities of the news sites through the creation of predictive indicators and information useful for the evaluation of news and its distribution on different channels. The second successful project, “Customer Value Accelerator”, focuses on the creation of a platform which, through the analysis of all available data, increases value for the audience both financially and in terms of information quality.
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Consolidated Non-Financial Statement
4. In 2017, La Stampa and Il Secolo XIX concluded the projects which won the first round of the DNI: “21VIDEO.IT: the video journalism platform of the 21st century” and “Local News Digital Platform, a learning and training program for Local Journalists on Local News”, while Il Secolo XIX won the third round with the “Journalist Digital Assistant” project, which developed a platform using artificial intelligence to provide journalists with data and information to improve the quality of their articles. 5. New distribution platforms have been under development in 2017, aimed at extending the range of publishing activities and increasing audience engagement through third-party digital operators (Instant Article, Facebook Live, Google AMP, Apps).
MAIN RESULTS ACHIEVED IN 2017: With an average of 2.2 million unique users on an average day and 13.7 million unique users a month on its sites, GEDI is the eighth biggest operator on the entire Italian digital market (including service providers and platforms like Google, Facebook, WhatsApp, Amazon, etc.);
The digital editions of the Group’s publications had a total of 63.1 subscribers on average in 2017; Repubblica.it was the leading Italian news website with 1.5 million unique users on an average day, representing a lead of 29% on the second biggest news website;
GEDI continues to pursue innovation and technological development. The home page of Repubblica.it was redeveloped and technological developments into smartphone versions of the website were continued, with an average of 616 thousand users per day and 5.5 million users per month, confirming the attainment of the goal to reach an increasingly extensive readership across multiple platforms; Repubblica is still the leading Italian daily in terms of its number of fans on Facebook (3.6 million) and Twitter (2.8 million) and a leader at international level as regards the level of involvement of its readers; The trends recorded by local newspaper websites were very positive, with an average Total Digital Audience of 2.3 million unique users each month. The development of social media networks on mobile devices was also very positive, with 3.1 million unique users per month directed from the Facebook app.
The year 2017 saw further reinforcement of the positions of the Group’s brands on social media networks: currently the pages of GEDI have over 33 million followers on Facebook and Twitter.
Deejay reached 2.2 million fans on Facebook and 2.4 million followers on Twitter.
Other digital initiatives In 2017, many new experimental, innovative and social publishing initiatives were successfully launched on Repubblica.it.
The new formats, introduced in 2016 and developed in 2017, respond to the needs of many readers to develop their knowledge of economic, political or scientific issues. In particular:
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Consolidated Non-Financial Statement
o Each day, a homepage featuring 20 articles selected from the paper edition is published. These articles are selected to fulfil a specific informative role in order to provide a better understanding of the context. Moreover, each user has access to a personalised homepage which is gradually constructed based on the articles they choose to read. Thanks to these technologies, the content can be enjoyed in isolation from everyday life. The page also stores older content in order to offer continual access to information that may interest the reader.
o Social News and Videoschede aim to quickly and effectively recount and examine the facts and themes of news stories, economics, politics and any other areas of our lives.
o In 2017, complex facts and questions were explained live through Know how: l’approfondimento che spiega (the insight that explains), where experts talk about economic and scientific, political and social matters to meet the demand for knowledge.
o Multiformat, designed to offer various different ways of using the product based on context and time of day, from nine audio articles a day which can be listened to on the move to newsletters and personalised new notifications.
o Generazione Z is a daily video blog directed at young people. From economics to music, the vlog does not only provide entertainment but represents a civic commitment:
o now in its fifth season, Webnotte was revamped while remaining true to its original formula: live music + talk show + comedy + web and social + improvisation, all in a new studio. The webshow continues to experiment with a formula that focuses on the internet, mobile devices and social networks, with a shorter running duration and more selective content. It also offers greater opportunities for interaction with the programme's followers, who can interact with the hosts and guests throughout the broadcast via Facebook. The focuses in 2017 were music and film legends.
o In 2017, the GEDI Digital Division, in collaboration with the media partner H24, produced four docufilms distributed on the Group’s portal and by broadcasters such as RAI and SKY. These docufilms focused on social and international themes such as:
o The death of the Italian researcher Giulio Regeni with “Nove Giorni al Cairo”;
o The story of the Islamic terrorist Amri with “Amri”;
o “Falcone, Borsellino e gli Altri”: a docufilm to mark the twenty-fifth anniversary of the massacre of Capaci and Via d’Amelio.
o “Un Unico Destino”, a docufilm on the shipwreck in the Mediterranean in 2013.
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Consolidated Non-Financial Statement
Group economic performance In 2017, as in previous years, GEDI carried out its activities placing the utmost attention on the citizen-reader and seeking to improve the quality of its products and services. Success in these activities cannot be achieved without economic and financial stability. The capacity to create independent, high-quality content is closely associated with economic independence and stability and, despite this difficult period of great change for the publishing and media industry in recent years, the Group has been able to generate a profit by ensuring a quality product for its stakeholders.
Financial highlights
It is noted that in 2017 a significant change in perimeter was recorded compared to 2016, in view of the deconsolidation of five publications in the course of the final quarter of 2016 and the consolidation of the ITEDI Group on 01 July 2017.
In order to ensure data comparability, in 2016 an income statement of equivalent scope was prepared, omitting the results of the decommissioned publications and including the results of the second six-month period of the ITEDI Group.
GEDI Net profit (loss) 2016 2016 2017 (€ million) (equivalent scope) Revenues 585.5 634.4 633.7 Gross operating profit 43.7 46.1 53.2 Operating profit (loss) 22.4 22.5 28.7 Profit (loss) before taxes 16.6 13.9 19.1 Net profit (loss) 10.4 7.0 -123.3
The results in 2017 registered a tax charge of an extraordinary nature and a significant figure, in view of the decision by the Company during the year to settle a dispute, pending before the Court of Cassation, which referred to disputes related to alleged tax evasion in relation to the tax benefits derived from the corporate reorganisation process of the Gruppo Editoriale L’Espresso in 1991. More information is widely available on the market in the various Financial Reports issued by the Company.
The Board of Directors of GEDI Gruppo Editoriale SpA, while retaining its conviction as to the civil and fiscal legality of the transaction under censure by the Financial Authorities, resolved on 29 September 2017 to exercise the right envisaged by Article 11 of Legislative Decree no. 50/2017, converted into Law no. 96/2017, to settle the tax dispute subject to Ruling no. 64/9/2012 of the Regional Tax Commission of Rome.
The settlement provides for the payment by the Company of € 175.3 million, of which € 140.2 million was paid in 2017 and the remaining € 35.1 million is due to be paid by 30 June 2018. In the case that the dispute pending before the Court of Cassation had been ruled against the Company, based on the evaluations of 30 June 2017 the charge would have been € 388.6 million.
The net loss arising from the settlement of the dispute, according to the terms described above, totalled € 143.2 million and is fully hedged in available net equity reserves, without depleting share capital.
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Consolidated Non-Financial Statement
In consideration of the fact that the Group possesses the prerequisites and means to ensure that the payment is financially and economically sustainable, the Board of Directors deemed the settlement to be in the interests of the Group in view of the advantages derived from the removal of possible tax-related risks related to the possible significant medium and long-term financial and economic consequences, which would certainly have been more severe than the chosen decision.
Consolidated revenues, for € 633.7 million, increased by 8.2% compared to 2016 and remained stable in the equivalent scope (-0.1%).
The consolidated gross operating profit was € 53.2 million, a significantly higher value to that of 2016 (€ 43.7 million), including in the equivalent scope (€ 46.1 million).
The consolidated operating profit was € 28.7 million, an increase on 2016 (€ 22.4 million), including in the equivalent scope (€ 22.5 million).
Tax charges totalled € 150.5 million due to the cost sustained in relation to the settlement of the dispute described above for € 143.2 million.
The profit of discontinued assets and assets held for sale includes € 8.2 million in relation to the deferred fee for the sale in January 2015 of All Music to Discovery.
The consolidated net profit (loss), due to the aforementioned tax expense, was negative by € 123.3 million, against a profit of €10.4 million in 2016.
Net financial debt as at 31 December 2017 was € 115.1 million, following the tax bill of € 140.2 million to settle the dispute.
27
Consolidated Non-Financial Statement
Economic Value of the Group The statement of Economic Value is a reclassification of the Consolidated Income Statement and represents the wealth generated and redistributed by GEDI. In particular, this statement presents the financial performance of operations, the wealth distributed to parties deemed to be stakeholders in the Group or the capacity of the organisation to create value for its stakeholders.
Statement of Economic Value of GEDI
(€ million) 2016 2017 Net revenues from sales 585.1 633.8 Income from financial activities 4.7 8.6 Other income 9.6 10.3 Economic Value generated (gross) 599.5 652.8 Depreciation, amortisation and write-downs 21.3 24.6 Economic Value generated (net) 578.1 628.2 Operating costs 335.7 380.0 Personnel 214.2 211.3 Providers of finance 9.5 9.5 Shareholders 0.1 0.1 Public Administration 8.1 150.5 Local community 0.0 0.0 Economic Value distributed to stakeholders 567.8 751.4 Profit for the year 10.4 -123.3 Economic Value held by the Group 10.4 -123.3
Net revenues from sales represent revenues from publications and advertising, the sale of online and mobile services, the transfer of rights and trademarks and the sale of content and other services.
Income from financial activities represents income/expense from dividends and on securities and derivatives, interest income on current accounts and short-term deposits, foreign exchange gains etc.
Other income consists of operating income deriving from grants, capital gains on the disposal of assets, extraordinary gains and income from equity investments accounted for with the equity method.
The three elements described above compose the gross global Economic Value, which in 2017 amounted to € 652.8 million (+8.9% compared to 2016). This value, less the value of amortisation, depreciation and write- downs, is the net global Economic Value, which in 2017 stood at € 628.2 million (+8.7% compared to 2016). The distribution of Economic Value is broken down as follows:
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Consolidated Non-Financial Statement
o Operating costs totalled € 380.0 million (+13.2% compared to 2016), of which costs for services constitute the majority (editorial costs, publisher fees and printing and other work carried out by third parties, etc.).
o The distribution of Economic Value to personnel equalled € 211.3 million, down 1.4% compared to 2016, represented for the most part by wages and salaries to GEDI workers.
o The distribution of Economic Value to lenders came to € 9.5 million in 2017 (-0.1% compared to 2016).
o The distribution of Economic Value to shareholders totalled € 80 thousand, constituting minority interests (profit pertaining to third party shareholders of Finegil Editoriale S.p.A. and Mo-Net S.r.l.). No dividends were distributed to the shareholders in 2016.
o The remuneration of the Public Administration, in the form of taxes, came to € 150.5 million.
o As regards the local community, GEDI made donations and participated in sponsorships for a total of € 43 thousand (+30.7% compared with 2016) given to charitable organisations.
Distribution of Economic Value of GEDI - 2017
0,0%
20,0% 0,0% 28,1% 50,6% In 2017, the Group donated € 43,000 to charitable organisations.
1,3%
Pubblica Amministrazione Comunità locali Finanziatori
Azionisti Personale Costi operativi
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Consolidated Non-Financial Statement
CHAPTER 2 - Informing the citizen-reader and responsibility to the general public GEDI acts transparently and responsibly with respect to society and its stakeholders, holding fast to the concepts of quality and integrity. It is also committed to boosting public awareness surrounding sustainability by encouraging constructive and respectful debate.
Aware of the effects of its activities on economic and social development and on the general well-being of the public, GEDI is committed - through the creation and distribution of content and interaction and engagement with users - to transmitting true, high-quality information that respects the religious, political, scientific and social views of the public. To do this, the Group interacts with users continuously while also maintaining its independence from all types of influence.
Content quality GEDI ensures the continuous alignment of its product content with the values and principles of the Group - laid out and disclosed to all employees through the Code of Ethics - and works to ensure its quality, plurality and diversity, while also taking into account industry regulations.
To ensure the high quality of all of its products, GEDI operates with the utmost respect for freedom of expression, a fundamental theme for any media organisation. Guaranteeing content plurality and freedom of expression by providing an independent product is a fundamental value and constitutes the most basic asset for a publisher, which goes hand in hand with the desire to offer the highest number of products to an increasingly broad audience of users. At the same time, the Group guarantees compliance with standards and protects the intellectual property of every content provider.
The quality of the information and content generated is also accompanied by a content distribution methodology that reflects the Group’s values, considering that the Group works to improve and promote access and the right to information for everyone, including minorities, the disabled and isolated communities.
Independence and editorial responsibility In the development of its publishing products, the Group does all of the groundwork to ensure that journalists, artists and other collaborators can act in accordance with the principle of editorial independence, which translates into the development of quality content that is not influenced by interests aside from those of journalism and the right to truthful and correct information.
The share capital of GEDI at 31 December 2017 was € 76,303,571.85. The names of the Shareholders of last resort that directly and/or indirectly hold more than 5% of the share capital with the right to vote are provided below.
Declarant or subject at Direct shareholder Percentage of ordinary Percentage of voting the top of the capital capital investment chain
F.lli DE BENEDETTI SPA CIR SPA – COMPAGNIE 43.780% 45.745% INDUSTRIALI RIUNITE
Giovanni Agnelli B.V. Exor N.V. 5.992% 6.261%
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Consolidated Non-Financial Statement
Caracciolo di Melito Falck Sia Blu SPA 5.078% 5.305%
Giacaranda Maria
The percentages derive from the notifications made by shareholders pursuant to Article 120 of the Consolidated Law on Finance (TUF).
As such, the percentages may not be in line with other data processed and made public by different sources, in the case that the variation of the shareholding did not require disclosure by the shareholders.
Voting capital must be calculated net of treasury shares held by the company as at 31/12/2017, which totalled 21,850,609.
As shown in the table of significant equity investments, the majority shareholder is Cir S.p.A.
In 2017 the Group did not receive direct publishing contributions; however, the accounting impact of direct contributions received until 2009 pursuant to Article 5 of Law 62/2001 is recorded, as is that of tax credit pursuant to Article 8 of Law no. 62/2001.
In 2017 the Group benefited from indirect contributions to publishing in the form of telephone subsidies amounting to € 500 thousand (-12.0% compared to 2016) and postal subsidies for subscriptions.
During the year the Group did not receive contributions from Public Administration or associations similar to the PA and did not make contributions of any type to political parties or politicians.
Industry regulations and codes of practice
GEDI operates in a highly regulated environment whose regulatory framework is continuously evolving. With the goal of operating correctly, the Group works in complete compliance with the laws that regulate the publishing and journalism industry, and most significantly: • law no. 47/1948 (“Press regulations”); • law no. 416/1981 as amended (“Regulations for publishing houses and publishing grants”); • the founding law of the Order of Journalists of 1963; • law no. 28/2002, “Provisions for equal access to the information media during electoral and referendum campaigns for political communications”, on the so-called “par condicio” act of 2000.
As well as legal provisions, there are also other reference criteria - such as the Codes of Ethics adopted by the Order of Journalists - which contain ideals that help balance press freedom and the right to report news with the other fundamental rights of individual persons (such as the privacy of information and image rights) and society (right to be informed comprehensively and impartially): • the Code of Professional Conduct (1998) regarding the processing of personal data in journalism activities, pursuant to the laws in force in Italy in the area of privacy; • the Treviso Charter on the protection of minors (adopted by the National Council of the Order of Journalists in 1990 and updated most recently in 2006 with the observations of the Italian Personal Data Protection Authority); • the Journalists’ Charter of Duties (1993) which covers issues such as responsibility, correction and reproduction, the presumption of innocence in criminal inquiries and during trials, sources, information and advertising, incompatibility, minors and disadvantaged parties; • the Charter of Information and Surveys (1995) which establishes the methods and techniques of presenting opinion polls.
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Consolidated Non-Financial Statement
To maintain intact and strengthen the truthfulness and independence of information, the “La Repubblica” Code of journalists’ rights and duties (otherwise defined as the “Charter”) is particularly important within the Group and, since 1990, has been enclosed, together with the Code of Ethics, with the letter of hire given to every one of the newspaper’s journalists.
The text lays out the basic ethical duties of journalists and outlines the fundamental values that underpin the independence of journalistic activities, the freedom from all influence and the attention focused on those in need.
La Repubblica’s journalists are committed to rejecting any political, economic or ideological interference, irrespective of its source: entities, institutions, public or secret associations, public or private companies or lobbyists. Journalists make a commitment to avoiding carrying out activities that may impact the objectivity and comprehensiveness of information, such as working in press offices, consultancy, promotions and public relations. Journalists also make a commitment not to accept compensation or donations from people, companies, entities, political parties, religious organisations, trade unions and financial and opinion groups they may come into contact with in the course of their activities and not to personally profit from information obtained for professional reasons.
GEDI is a member of the “Leading European Newspaper Alliance” (LENA), founded in March 2015 and committed to developing suitable responses to the changes affecting the journalism industry.
GEDI is also a member of the FIEG (Italian Federation of Publishers and Newspapers), whose goals are freedom of information, the cost effectiveness of publishing companies, the development and spread of the mass media as a vehicle for information and advertising, and the protection of the rights and moral and material interests of its members.
Responsible advertising and marketing Through its agency (A.Manzoni & C.), the Group is committed to applying virtuous models of advertising communications.
The Group has adopted the rules laid out in the Italian Code of Commercial Communication Self-Regulation, and therefore does not accept any messages contrary to the dignity and the interest of people. As a result, those responsible for advertising sales conduct monitoring to prevent the publication of false advertising information regarding commercial products, messages that incite physical and moral violence, which promote racism or offend the moral, religious or civil convictions of citizens, or which contain elements that could mentally, morally or physically harm minors. The Group does not accept advertising that may provoke the abuse of alcohol, tobacco or any type of drug, and rejects any advertising containing pornography.
In 2017, no penalties were imposed upon A. Manzoni & C. as a result of cases of unlawfulness or non- compliance of advertising messages in line with applicable law.
In addition to the Marketing Communication Self-Regulation Code, the Group complies with the decree regarding misleading and comparative advertising in professional relations (Italian Legislative Decree no. 145/07). This decree involves adopting a complete and comprehensive regulation that protects professionals from misleading advertising and its unfair consequences, as well as providing for conditions of legality in comparative advertising.
The Group operates on the basis of internal procedures and systems to safeguard and promote honest advertising communications which do not offend the sensibilities of users. The Group acknowledges Decree MEF-MISE (Ministry of Economy and Finance - Ministry of Economic Development) of 19 July 2016 on the media exempt from the prohibited advertising of games with winnings in cash. 32
Consolidated Non-Financial Statement
An operating procedure is in place to manage the issues of legality (legal aspects) and opportunity (compatibility with the editorial line of the medium/a in question), which is applied to all advertisements to be included in publications under license, based on which it is possible to request an assessment of messages considered to be suspicious or which in any case require review.
Following the merger by incorporation of the company Publikompass SpA into A. Manzoni & C. in October 2017, training courses on the issues of legality and opportunity for employees and agents of the incorporated company Publikompass were organised in order to raise awareness of the following themes:
- respect for the Italian Code of Commercial Communication Self-Regulation and its constraints; - the types of advertising considered particularly insidious which are specifically considered in the Code (e.g. credit and distance sales, offer of prizes, etc.); - the sectors subject to special attention (e.g. alcoholic drinks, cosmetic and personal hygiene products, dietary supplements and dietetic products, etc.); - the issues regulated by specific laws due to their perceived sensitivity or relevance to the social context (e.g. electoral messages, tobacco and smoking, open letters, gambling); - adoption of operating procedures for the management of legality and opportunity issues.
The company intranet of A. Manzoni & C. features a special section on “Advertising laws”. This section is THE INFORMATION AND ADVERTISING CHARTER IS broken down into topics and briefly describes the THE PROTOCOL SIGNED BY JOURNALISTS, regulations in place which are applicable to users, ADVERTISING AGENCIES AND PUBLIC RELATIONS agencies and advertising media, and therefore provides ORGANISATIONS TO PROTECT THE BOUNDARIES a guide for the entire A. Manzoni & C. organisation, to BETWEEN INFORMATION AND ADVERTISING. be read and consulted on a preventive basis for all advertising sale activities. This section aims to contribute to limiting litigation and company costs and, if used appropriately, also constitutes a valid instrument for customer-focused service activities, fostering long-term relationships.
As regards online advertising and promotional campaigns, given the relative absence of specific regulations for this platform and in order to protect those who are most vulnerable and most influenced by advertising, the Group follows the more restrictive regulation applicable to television advertising.
Privacy and data protection The theme of privacy and personal data protection continues to be of fundamental importance in the business domain and a rigorous and transparent policy in this area is a key factor in the relationship between a company and its users.
This is all the more true in the publishing sector in which GEDI companies operate given that, in said sector, the relationship between the publisher and readers is based on a strong trust agreement.
Therefore, GEDI companies, in processing the personal data of its users, employ rigorous policies constantly updated in line with the applicable relevant national and European legislation, as applied and interpreted in the provisions of the Personal Data Protection Authority.
33
Consolidated Non-Financial Statement
This policy concerns, in particular, the data collected and managed through the GEDI digital properties and is centred on the principles of necessity of processing, proportionality, transparency and freedom of choice of the interested party.
Within this context, Group companies only process the data actually needed to provide the services and contents required by users and, in all other cases, or for commercial and marketing purposes, do it exclusively on the basis of the free and informed consent acquired by users after having provided them with adequate information.
For all databases in which the personal data of users, partners and associates is collected and stored, the Group adopts all necessary technical, organisational and security measures to avert the risk of the destruction or loss of data, unauthorised access and the unauthorised processing of data.
Also in relation to the personal data of users acquired and processes using cookies, the Group companies observe the applicable regulations governing privacy, with particular reference to the provisions of the Personal Data Protection Authority adopted in compliance with the provisions of art. 122 of the Privacy Code.
The policy relating to the use of cookies in the activities carried out vis-a-vis users is available at the following address: https://login.kataweb.it/static/privacy/?editore=gruppoespresso&ref=RHFT.
It should also be noted that following the extraordinary events that affected the companies of the GEDI Group in 2017, it was necessary to update the electronic data processing notifications at the Data Protection Register of the Personal Data Protection Authority. Finally, it is highlighted that in view of the significant changes introduced by the new EU Regulation 2016/679 on the subject of personal data protection, which became effective on 24 May 2016 and will be directly applicable to all European Union countries by 25 May 2018, the Group's companies have implemented preparatory activities aimed at the correct application of the new legislation regarding compliance with legal provisions.
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CHAPTER 3 - Social role and participation in the community GEDI contributes to sustainable local development by supporting the communities in which it works through the organisation of social events and initiatives on all of its technological platforms.
This section describes the Group’s main initiatives, carried out or launched in 2017, which had a positive effect on the community in terms of their social, cultural, educational/sports and environmental impact.
Publishing initiatives
Repubblica@Scuola
Repubblica@Scuola is a free educational project promoted by Repubblica.it and offered to Italian students and secondary schools.
The project revolves around the concept of “the school that I want” and is implemented in a variety of ways:
• Editorial activities: competitions, incentives, partnerships
• The intra-school newspaper edited by students
• The Repubblica “lectio magistralis” (on demand video)
The initiative aims to help young people to improve their writing skills, encouraging them to contribute to group work and stimulate debate with other schools. By actively participating in Repubblica@Scuola, students can earn school credits.
Launched in 2000, it is the first and largest platform designed for the publication of content for schools. Over the course of its eighteen-year history, the project has seen more than 10 million subscriptions and over 530,000 publications produced by students in the last 9 editions. In the 2016/2017 academic year, 193,163 students, 8,307 teachers and 1,558 schools took part in the project.
Students who sign up to the project can write articles, take part in competitions, interact with other students and improve their writing, photography and design skills. Moreover, schools participating in Repubblica@Scuola are able to offer their students the opportunity to write for genuine online school newspapers.
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Since 2017, Repubblica@Scuola has supported the “School-Work” project promoted by MIUR in an exceptionally innovative way. For the first time, students are offered the opportunity to explore how a publishing group operates without the need to be physically present in the news room. Instead, students can put themselves to the test by exploring the possibilities offered by the digital world and experiment with working remotely. This enables students who live in geographically remote locations to gain a deep understanding of a leading entrepreneurial enterprise.
R.it Mondo Solidale
Launched in 2010, R.it Mondo Solidale is the section of Repubblica.it dedicated to International Cooperation, humanitarian aid, voluntary work, the defence of human rights and development projects in emerging countries, with a primary focus on three continents: Africa, Asia and Latin America, as well as in certain deprived areas in Eastern Europe.
The site features numerous written reports and images stored in the Repubblica TV archives and produced in the countries where the organisations work, inviting us to gain a closer look at aid projects financed by the European Commission, the Italian Ministry of Foreign Affairs or private companies in various African, Asian and Latin American countries. The site follows the rise of the global migration phenomenon and the refugee reception systems in place in different countries. Mondo Sociale also contains stories of people who work in the field of international cooperation through themed blogs.
The section also has an updated region-by-region database of all Italian NGOs and non-profit associations and over the years has achieved its original goal of providing space in the Italian mainstream media for a sector that is all too often forgotten and covered only in exceptional circumstances.
R.it Sport senza Barriere R.it Sport senza Barriere is the new site of Repubblica.it dedicated to disabled athletes and their families. The pages feature information on sports centres with facilities for disabled people, events and success stories. The portal was constructed in collaboration with the Vodafone foundation, whose representative is Alex Zanardi.
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La Repubblica delle Idee
Since 2012, the four-day festival has been offered to the public free of charge, with numerous events held in squares and public venues attended by leading Italian and international names from the world of newspapers, culture, politics and show business. The festival features debates, lectures and interviews, as well as concerts, theatrical performances, screenings of documentary films and live radio. Participants talked literature, politics, economics and show business, sport and philosophy, and about the most current issues in Italy and the world over. In 2017 the festival was held in Bologna with over 90 events and 200 speakers, and was attended by over 30,000 people.
Guide di Repubblica and Guide dell’Espresso By contrast, various events were organised in 2017 to promote some hugely successful editorial products: Guide di Repubblica and Guide dell’Espresso.
o The Guide di Repubblica represent an important regional resource, with a guide for each region in Italy plus a number of themed guides distributed nationally (ANAS Guide, AISCAT Guide, Guida al cioccolato, Roma Maxima). In 2017, a total of 23 events were held in Italy which involved local authorities, producers of high quality wine and food and restaurateurs.
o The Guide dell’Espresso Restaurant and Wine guides are distributed nationally. A public presentation attended by the best restaurants and wine producers in Italy is organised each year. Approximately 1,500 guests participate in the event and its awards ceremony every year.
Tempo dei Libri (19-23 April 2017) Repubblica-Robinson manned a stand at Tempo di Libri 2017 in Milan, offering a range of initiatives including the participation of various Milan colleges taking part in the Work-School Project who contributed to the social and informative role of the event. Coordinated by the Social Editor, the students worked together to develop Facebook Live, Instagram and Snapchat Stories for Repubblica’s social media profiles. A total of 22 live broadcasts were published, including 10 on the Repubblica Facebook page and 11 on Repubblica TV.
Every day that Robinson spent at Tempo di Libri was described through a video blog posted on Repubblica.it using the “Stories” feature offered by Instragram and Snapchat. According to studies by Quest Factory, during the event the Robinson and Repubblica Twitter pages were the most prolific in terms of number of tweets, general impressions (shares, retweets and likes) and tags (two hashtags were created for readers, #romanziintrerighe and #bookshelfie, both of which trended nationally).
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LUCCA COMICS (1 – 5 November 2017) The Repubblica stand at the Lucca Comics event became the centre of intense discussion, supported by posts published on social media and the newspaper’s other digital platforms (each event was viewed approximately 20,000 times).
PIU’ LIBRI PIU’ LIBERI 6-10 December 2017 At the Repubblica stand at Più Libri più liberi, students participating in the Work-School Project provided the social media coverage of the Robinson Arena, with 22 videos broadcast live on the Repubblica Facebook page and Repubblica TV. The Robinson and Repubblica Twitter accounts shared 220 tweets, while five stories of approximately 4 minutes long were posted on the Instagram account, gaining an average of 7 thousand views per frame. At the end of the project, a story was published on Instagram to collate the experiences of the students.
The cultural supplement of Repubblica: Robinson
Every Sunday in 2017, the new cultural supplement Robinson, named after the character by Daniel Defoe, was included in Repubblica to enrich Repubblica’s cultural offering.
The supplement features 36 to 40 removable pages, special artwork, news, information and interesting facts, as well as exploring cultural destinations recounted through the words of authors, journalists, artists, scientists and historians, or with images from top Italian and international photographers and illustrators.
La Stampa “E-20” Articles from leading journalists and commentators and the best multimedia content selected and signed by La Stampa explore the most significant and hotly debated current affairs.
“E20-Eventi” is a new tool for teachers and secondary school students designed to support the history textbooks and anthologies of the De Agostini Scuola Group.
Oncoline - Chiudi la porta, salvati la vita Launched in 2016 in cooperation with AIOM (Association of Italian Oncologists), the Oncoline website has become a point of reference and a permanent resource on oncological diseases. Oncoline aims to affirm the principle of “curable incurable diseases” and reinforces the increasingly tangible hope for finding a cure. The journalistic coverage of the leading international conventions on the subject of oncological diseases is particularly innovative.
Furthermore, in 2017, the portal was awarded the Peace Price of the AIOM Association (Italian Association of Medical Oncology). 38
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Radio initiatives Deejay Ten One of the main initiatives promoted by the radio broadcaster Radio Deejay is the race organised in various Italian cities. Launched in 2005 as an initiative “amongst friends”, over the years it has grown exponentially to become an increasingly extensive and hotly-anticipated event by listeners and runners. The race represents the climax of a three-day event held in Deejay Village, brought to life by radio hosts and characterised by music and entertainment. The initiative continues to be attended by more and more people each year and in 2017 the existing events in Milan, Florence and Bari were joined by a new event in Rome.
Now in its thirteenth year, in 2017 the Milan edition of Deejay Ten has become an annual tradition for both the city and the entire north of Italy and involved 35,000 runners, representing an increase of five thousand people compared to the previous year.
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Once again, Florence confirmed its place as one of the key host venues of the event with almost 12,500 participants in 2017.
Bari greeted the third edition of the Radio Deejay race with great enthusiasm with 10,000 participants.
Attended by 10,000 participants, Deejay Ten's début in Rome in 2017 was also highly successful. The ten thousand runners began the race in the magnificent setting of Circo Massimo and passed the Colosseum and the Imperial Forum, two of the most evocative and historical sites in Rome liberated from the noise of the traffic.
Radio Deejay in Summer
Summer has always been characterised by Radio Deejay's presence in Riccione.
It is a symbiotic tradition that enables fans, tourists and passers-by to star in Radio Deejay programmes, transforming the radio station into a visual as well as audio experience with a mobile studio in Piazzale Roma and a daily live radio schedule.
Given the great success enjoyed by the 2017 edition, the event has been replicated with various winter appearances.
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Solidarity initiatives On 22 December 2017, the all-day event which ran from 7:00 to 20:00 to support the non-profit organisation Cesvi returned. The organisation operates in over twenty countries worldwide and implements projects to support the most vulnerable members of society.
Radio Deejay held a radio marathon, coordinated by Trio Medusa. Listeners and friends participated in the charity auction to raise funds for street children in Zimbabwe and to support people living in poverty in Italy. The auction features numerous prizes donated by celebrities, such as the gold medal won by Bebe Vio at the Wheelchair Fencing World Championships in 2017.
For the ninth consecutive year, in 2017 Radio Deejay supported the fund-raising campaign of Dynamo Camp, in collaboration with Radio Capital. Radio listeners could donate € 2 by sending a text message to a charity number or calling from a landline to help offer seriously ill children the opportunity to spend a free holiday at the Dynamo Camp.
The fund-raising activities were supported by a charity auction organised by the Dynamo Camp Non-Profit Organisation in collaboration with Radio Deejay.
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CHAPTER 4 - Focus on human resources
Working conditions and practices
“The Group recognises the centrality of human resources and the importance of establishing and maintaining relationships with them based on loyalty and mutual trust. Therefore, the management of work and collaboration relationships is based on respect for workers’ rights and on taking full advantage of their contribution with a view to promoting their development and professional growth” (extract from the Group's Code of Ethics).
Human Resources are the key asset of GEDI. The Group is deeply committed to strengthening the sense of belonging and promoting the effectiveness of teamwork, knowledge sharing and professional advancement. In the final analysis, the realisation of these goals guarantees that human resources pursue results that are consistent with the Group’s company objectives, which have always prioritised excellence.
Investing in human and intellectual capital is a fundamental lever for the Group in order to create and retain value over time. Investments in training and development courses and company welfare initiatives produce a long series of benefits that contribute to creating value for human resources.
The Workforce3
At 31 December 2017, the total workforce of GEDI numbered 2,445 people, up 26% compared to the previous year due to the acquisition of ITEDI. In line with the previous year, journalists accounted for 48%, office workers made up 42% and the remaining 11% consisted of executives and manual workers.
Number of employees in the Group
3 The workforce figures as at 31 December 2015 were restated to take account of the hiring, from 01 January 2016, of 39 people who were previously employees of a cooperative that operated in the publishing sector and training on behalf of Finegil Editoriale. 42
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Breakdown of Group employees by professional level (2017)
Group employees by contract type and gender (2017)
As regards the age distribution of the company population, 41% of employees are between 30 and 50 years old.
Breakdown of Group employees by professional level (2017)
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GEDI implements employment policies aimed at establishing stable working relationships with employees, as demonstrated by the high percentage (97%) of permanent contracts.
Talent attraction and retention
The incoming turnover rate is 11.74%, while the outgoing rate is 10.14% (also including employees who left the company because they were eligible for retirement). The voluntary outgoing turnover rate is 1.47%, in line with previous years.
As regards initiatives for attracting talented individuals who wish to embark upon a publishing career, there are a number of well-established projects based on multi-year relationships with universities, journalism schools and other institutions or associations.
Among these is the relationship with Fondazione Mario Formenton, which offers an opportunity to meet ambitious, deserving young people who wish to begin working in the publishing industry. The Foundation offers study grants connected with the worlds of journalism and management. The winners are offered a training or a specialisation and fine-tuning placement with the goal of introducing them to the working world in both journalistic and administrative roles.
Industrial relations Industrial relations with trade union organisations have always been focused on proactive collaboration with respect for the various roles. During the year, important agreements were reached with trade unions in the context of a challenging economic outlook for Italy, while agreements to protect health and safety in the workplace were signed. Moreover, the Group continued its commitment to promote the professional development of its employees across all levels and employment categories.
Furthermore, 100% of the Group’s employees were covered by collective bargaining agreements in 2017.
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Diversity and equal opportunities
The Group undertakes to avoid all forms of discrimination based on age, gender, sexuality, state of health, race, nationality, political opinion, religious beliefs, in all decisions that impact the relations with its stakeholders (extract from the Group’s Code of Ethics)
GEDI pays close attention to respect for diversity and equal opportunities in its recruitment of new employees, rejecting all discriminatory practices and recognising the skills of each individual irrespective of nationality, religion or gender.
GEDI’s management and enhancement of human capital has always been focused on integration and respect for diversity. Relations amongst employees take place in accordance with provisions to protect people’s rights and freedoms and the core principles that affirm equal social dignity, with no discrimination based on nationality, language, age, gender, ethnic background, religious beliefs, political and union memberships or physical or mental condition.
Women make up 36.6% of the workforce with the highest percentage amongst office workers (46.3%). The breakdown of the workforce is impacted by some of the specific work carried out within the Group, particularly in the printing industry, and a tradition in which there has historically been a predominantly male presence within the specific working class, as in the case of preparation and printing processes, which take place at night. The Group’s 896 women employees work primarily on the editorial teams as well as in the administrative and sales areas.
Equal opportunities are offered to employees of both sexes, while also promoting concrete initiatives to facilitate the work-life balance, such as the introduction of non-full-time employment contracts. As regards permanent employees, 96.9% are hired on a full-time contract, while the remaining 3.1% work part-time. Women represent 90.7% of part-time employees.
GEDI is also committed to supporting the hiring of underprivileged people, in recognition of the value of diversity and the importance of interaction between different groups in any activity. The Group also supports the integration of certain groups, such as disabled employees. Number of Group employees belonging to “protected categories” (2017)
The remuneration policies are aimed at ensuring competitiveness on the labour market in line with the growth and loyalty retention objectives for human resources, as well as differentiating the remuneration instruments on the basis of individual expertise and skills. There are also slight differences between the average wages of men and women within the same employee category.
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Ratio of average gross Ratio of average total salary of women/men remuneration of 2017 women/men 2017 Executives 75%* 70%* Journalists 80% 77% Office 89% 82% workers Manual 86% 72% workers *This figure excludes the General Managers and Head Office Directors of the various companies
The maternity and parental leave return rate was 100%.
Enhancement and development of skills Training requirements are evaluated based on periodic discussions with sector Managers.
In 2017, the Company invested in managerial training, offering Leadership Development courses to newly appointed or promoted Managers in order to adapt their skills to effectively fulfil their new role. A similar initiative was aimed at two Personnel Management departments (Contractors’ Department and Expenses Department) with the offer of a team-building course constructed around constant dialogue between participating employees.
In 2017, courses and modules aimed at the administrative division (Rome) on the subject of taxation (accounting, withholding taxes) and IT (Excel) were offered, which due to high demand are still ongoing.
Language courses were offered, aimed particularly at editorial secretaries and managers (with whom the Group has been developing linguistic training programmes for a number of years with extremely positive results).
As regards digital marketing, the requests put forth by sector Managers in Rome and Milan were fulfilled.
Overall, 2017 was a particularly industrious year in terms of company training, almost of all which was financed by the Cross-Industry Funds (Fondimpresa and Fondirigenti).
In 2017, GEDI provided its employees with more than 13,172 hours of training.
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Hours of training provided to Group employees by gender (2017)
Aside from the training courses provided for office workers and executives, once again, the Group’s employees underwent significant training in 2017, accounting for 76% of all training hours provided.
Hours of training provided to Group employees by professional role (2017)
In addition, with the aim of developing and enhancing its human resources, GEDI periodically assesses the performances of its employees. In 2017, performance assessments were carried out for the majority of executive managers (94%).
Worker health and safety GEDI has always been committed to protecting the integrity, health and well-being of its workers in all work places. The Group actively complies with legal requirements and obligations regarding health and safety in the workplace and ensures that they are applied in all of its companies. This takes place through the definition of organisational structures based on specific operating responsibilities, managerial responsibilities, the planning of prevention activities over time, the preparation of the relative expense budget, and the ongoing use of all technical support required to assess and reduce risks. Particular focus is dedicated to personnel training based on roles - workers, supervisors and executives - depending on the risks to which they are exposed and their specific tasks and duties.
In terms of industrial plant safety, particular attention is devoted to controls and detailed analysis in the planning and acquisition of new machines, machine reconditioning and reconfiguration and production
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The number of training hours on plant safety increased from 230 hours in 2016 to over 3,750 hours in 2017, thanks to the launch of an online safety courses made available to all employees.4
In 2017, the company provided training/information on the management of emergencies, video-terminals and other residual risks, with the involvement of the company personnel responsible, as well as the training of workers’ safety representatives.
In 2017, 28 injuries were recorded, 18 of which during home-office commutes and vice versa.
4 The online training course does not include former ITEDI employees.
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CHAPTER 5 - The Group’s environmental impact The Group’s commitment to safeguarding the environment is realised through a range of initiatives designed to minimise the environmental impact of products and production activities, for example through the efficient use of natural resources, the optimisation of logistics flows and responsible waste management. The Group dedicates human and financial resources to actively comply with the extensive regulations in force for the protection of the environment and the resolution of environmental problems, primarily deriving from industrial processes. This activity involves a broad range of assessment and procedural activities and instrumental measurements which are carried out every day to efficiently and comprehensively meet regulatory requirements in this area as well as the expectations of its stakeholders.
Paper management and consumption are fundamental issues for the Group and - despite the digital evolution at the root of the GEDI strategy - still play a very important role in terms of reducing its environmental impact. The Group also seeks to guarantee the responsible use of its various resources by reducing energy and water consumption and improving the management of atmospheric emissions.
Management of paper and other raw materials
The paper production process is carried out entirely by the paper mills and the finished product is then transferred to the graphic design company which looks after printing. The printed paper then goes to the warehouses, where it is stored before distribution. The return mechanism is also worth highlighting: after the newspaper/periodical is received by the reader, it can be collected and recycled, or it can be disposed of with non-recyclable waste. Paper pulp deriving from the collection of separate paper waste is sent to the paper mill for recycling.
Paper is a material of primary importance in GEDI’s industrial activities, and is also considered to be a sensitive element due to its environmental impact. In sourcing the different types of paper used to print its newspapers, periodicals and add-on products, the Group relies on leading international paper mills that are able to guarantee the strictest compliance with European environmental protection regulations. These are leading, internationally known companies in the sector which obtain raw materials from forests with international environmental protection certifications. All paper suppliers make use, albeit to differing extents, of DIP - or de-inked pulp - primarily for the production of newsprint, improved newsprint and coated paper. For the production of higher quality paper, our paper mill suppliers use non-chlorine cellulose. Production processes are certified by various national and international bodies to obtain sustainability labels.
In 2017, the Group used 83,524 tonnes of paper, representing an increase of 11.5% compared to the 74,891 tonnes used in 2016. However, it should be noted that in the last year the Group acquired the Printing Centre in Turin, which uses 19,071 tonnes of paper each year. Without this contribution, total paper consumption would be 64,453 tonnes, representing a slight decrease compared to 2016 (-13.9%), due also to the increased use of digital content. The percentage of recycled paper used within the Group, in addition to the certified paper used at the Printing Centre in Turin, is high, representing approximately 77% of total paper usage.
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Use of virgin, certified and recycled paper by the Group (t)
As regards the type of paper used, in addition to newsprint for the newspapers, lightweight coated and best calendared plus paper are also used for the periodicals, while TrovaRoma and TuttoMilano are printed on improved newsprint.
As regards the other raw materials used to print the newspapers, ink and plates are of particular significance. The Group's printing plants use two types of technology: offset printing (Turin) and flexographic printing (all other printing plants). With reference to the 2016-2017 two-year period, data for the consumption of plates and ink is available. The consumption of both materials has reduced, with plates down by -2.2% and ink down by -20%.
In 2017, the transition to new offset printing plate technologies was completed. The introduction of the new Attiro development units has enabled the reduction of development liquids and maintenance cycles, while the new chemical-free plates enable larger print runs as the plate can be reused a greater number of times. These changes will have a positive impact on reducing the quantity and quality of waste. In particular, the production of hazardous waste produced in 2017 remained unchanged, despite the entry into the Group of the Turin Printing Plant.
Energy and emissions
The Group's energy consumption5 As regards energy consumption, the Group is committed to implementing initiatives focused on efficiency and the limiting of consumption with the ultimate goal of achieving higher eco-efficiency levels. GEDI consumes electricity for various reasons, mainly for the lighting of administrative and editorial offices, the various local offices throughout the country and the warehouses, and to run radio repeaters and printing plants.
In 2017, GEDI consumed just over 56 million kWh, representing a 2.7% decrease compared with the previous year. In this case, the inclusion of the usage figures of the Printing Centre in Turin and the editorial offices should once again be noted. Without this contribution, usage would amount to just over 48 million kWh (a decrease of approximately -11.6% on the previous year).
5 The Group’s electricity consumption includes high-frequency absorption. As regards natural gas, the conversion parameter applied was 9.7 (as notified by the Lazio Region in 2016) in order to include a precautionary margin of plant efficiencies. 50
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The Group's electricity consumption (MWh)6
As regards fossil fuels, in 2017 the consumption of natural gas increased by 13.6% compared to 2016 due to the increased usage of the Printing Plant in Turin and the editorial offices. Without this contribution, consumption would have reduced by 9.8% compared to the previous year. Thanks to the use of district heating systems in certain offices of the Group, in 2017 gas consumption fell by 49,681 m3, representing approximately 4.8% of total annual consumption.
Natural gas is used mainly to heat the Group offices.
The Group’s natural gas consumption (m3)
As regards diesel, consumption in 2017 was once again very limited (102 tonnes) with a decrease of 21.8% compared with 2016.
6 The conversion factors used to calculate electricity consumption were as follows: 1 kWh = 0.0036 GJ (electricity), 1 m3 = 0.03901 GJ (natural gas) and 1 t = 42.88 GJ (diesel).
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+2.7% +13.6% -21.8% electricity consumption natural gas consumption diesel consumption
Initiatives to reduce energy consumption
In 2017, in order to reduce energy consumption and limit the Group's environmental impact, some of the lighting in GEDI editorial offices was replaced with energy-efficient bulbs, resulting in a saving of approximately 1 million kWh (-16.8% compared to electricity consumption in 2016).
Greenhouse gas emissions7 To monitor its environmental impact and implement A Carbon Footprint is the amount of initiatives to mitigate it, in 2017 GEDI once again made a greenhouse gas that can be attributed commitment to calculating the greenhouse gas emissions to a product, organisation or directly or indirectly associated with its core activities. individual. It is expressed in tonnes of CO2 eq (CO2 equivalent).
Greenhouse gas emissions
t CO2 eq 2015 2016 2017 Scope 1 1,704 1,723 1,957
Scope 2 22,888 18,809 19,318 Scope 3 35,970 32,214 35,927 Total 60,562 52,746 57,202 In compliance with the provisions of the Greenhouse Gas (GHG) Protocol, the leading emissions reporting standards, emissions were subdivided into various categories: in particular, Scope 1 emissions refer to those produced by natural gas, Scope 2 emissions refer to electricity consumption and Scope 3 emissions refer to the use of paper and waste products.
7 In order to calculate greenhouse gas emissions in 2016 and 2017, the emission factors were updated.
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In 2017, GEDI’s total emissions amounted to 57,202 tonnes of CO2 equivalent, representing an increase of 8.4% compared to 2016.
tCO2 eq
Scope 2 Scope 1 Scope 3
33.8 % 3.4 % 62.8%
Environmental impact of radio activities
Elemedia S.p.A broadcasts FM radio on behalf of the Group's three broadcasters (Radio Deejay, Radio Capital and m2o). Transmission takes place through roughly 900 frequencies broadcast by transmission sites where antennas on metal support frames are installed. These sites are located primarily in mountainous areas far from inhabited areas.
The Group does not decide on the placement of broadcasting plants or technical parameters, which are established by the Ministry of Economic Development.
The Group’s radio antennas may be checked by the ARPA (Regional Environmental Protection Agencies), which monitor compliance with the legal limits placed on electromagnetic fields (the limits imposed by Italian law are amongst the strictest in Europe). In any event, the emissions generated by the Elemedia plants are a direct result of management methods based on strict compliance with the parameters established for the concession.
To keep pollution levels systematically below the limits, the Elemedia conducts self-audits and allocates adequate resources expressly for this reason. The Group relies on a network of inspectors responsible for managing the plant network, who carry out periodic control and maintenance activities. The Group also uses several probes located throughout the country and placed in some strategic points in cities, which are used to monitor signal levels (remote control network).
Elemedia did not receive any penalties for exceeding radiation protection limits, while it is common practice for Elemedia to undertake reduction procedures to ensure compliance.
Lastly, along with other Italian radio broadcasters, Elemedia is a member of a consortium (CLUB DAB Italia) for the promotion and development of Digital Audio Broadcasting (DAB) frequencies, a digital radio broadcasting system which is still being planned in many Italian regions by the Ministry of Development. DAB has a number of advantages compared to analogue broadcasting: first and foremost, these include better signal quality due to the reduction in interference and disturbances deriving from the overlapping of programmes and the presence of obstacles in the signal broadcasting path; secondly, the system helps to offer a better service to users as it enables supplementary information to be combined with the audio signal; finally, the DAB system consumes much less energy than analogue systems, which also greatly reduces the environmental impact. 53
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Group water consumption
GEDI promotes the responsible and informed use of water. This resource is used primarily in employee bathrooms and, to a lesser extent, in the printing process at some plants. In 2017, water consumption came to 102,818 m3, representing an increase of 21.4% compared to 2016. In this case, the inclusion of the usage figures of the Printing Centre in Turin and the editorial offices, which totalled 8,148 m3, should once again be noted. The Group uses water exclusively from the public water supply.
Water drawn by the Group from the public water system (m3)
Waste management In line with its focus on environmental protection and the responsible use of resources, GEDI also works to reduce waste from its core operations. The Group raises the awareness of its employees with regard to proper waste disposal and management and the minimisation of waste.
In 2017, waste production rose slightly, with the increase of 10.9% compared to 2016 due largely to the increase in non-hazardous waste. Considering that entry of the Turin printing plant into the Group, this figure is generally positive, particularly with reference to the fact that the production of hazardous waste remained unchanged. The percentages of hazardous and non-hazardous waste were 35% and 65% respectively, in line with the previous year.
It is noted that in 2017, approximately 12% of waste was recycled.
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Waste produced by the Group (t)
Percentage of hazardous and non-hazardous waste produced by the Group in 2017 (t)
Lastly, in addition to the customary evaluation and management activities to ensure compliance with applicable regulations, the company complied with all requirements connected with the introduction of the SISTRI waste management system.
Returns and pulp
Unsold copies of publications (returns) are collected from news-stands by local distributors who proceed to count and record them. Returns are generally collected from the warehouses of local distributors on pallets by a single operator responsible for collecting the return and sent to two depots, in central Italy and the other in Northern Italy. These depots count and certify them and if they are add- on products (Books, CDs, DVDs etc.), they are sorted. Copies in perfect condition are made available for sale through the back issues service while the remainders are pulped.
In recent years the mechanism of the certified return of publications has been introduced. This consists of processing returns by local 11,500 tonnes of distributors through certification and, at the same time, pulping. In pulped returns 2017, some 69 certificates were issued by the Certified Returns Body collected by local (which concern 50 out of 68 active local distributors) enabling local distributors in distributors to pulp the publications directly on-site. In 2017, local 2017 pulp totalled approximately 11,500 tonnes.
This led to a significant reduction in the volume of copies that the returns collection company had to transport, store and collect, with a significant positive impact on the environment.
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Environmental impact of distribution and logistics The Group focuses increasing attention on reducing the environmental impact of the transportation of its products and is constantly committed to developing solutions to optimise it.
Newspapers Daily newspaper la Repubblica is printed at 9 printing centres located across Italy from which vehicles depart every night to deliver the printed copies to the various local distributors (68 private companies as at 31 December 2017) who, in turn, deliver the papers to Italian news stands. The transport from the printing centre to local distributors is defined as “primary transport” while that from local distributors to news-stands is “secondary transport”, managed entirely and independently by local distributors.
Primary transport for the Repubblica newspaper is managed by the national distributor Somedia S.p.A. (which changed its name on 01 January 2018 to Gedi Distribuzione S.p.A. - a wholly owned subsidiary of GEDI) which uses certified third-party contractors. Significant measures have been taken to reduce the number of dedicated and exclusive carriers, entrusting the activities to operators that also transport publications by other publishers, with the objective of filling vehicles, and therefore reducing the environmental impacts. In addition, transport pooling has been introduced at the printing centres where the other GEDI local newspapers are printed.
Periodicals The primary transport from printing sites of all of the GEDI periodicals and add-on products (books, CDs, DVDs etc.) that come with Group publications is handled by Somedia S.p.A. (Gedi Distribuzione S.p.A.), which uses a sole certified national operator. In this way the transport vehicles are loaded as fully as possible guaranteeing a substantial reduction in atmospheric emissions.
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Consolidated Non-Financial Statement
Attachments
Human Resources Company population by employee category and gender8 2015 2016 2017
Men Women Total Men Women Total Men Women Total no. of employees Executives 54 13 67 52 13 65 55 12 67 Journalists 696 343 1,039 577 297 874 786 382 1,168 Office workers 474 398 872 439 392 831 545 470 1,015 Manual workers 196 48 244 146 24 170 163 32 195 Total 1,420 802 2,222 1,214 726 1,940 1,549 896 2,445
Company population by contract type (fixed-term vs. permanent) and gender 2015 2016 2017
Men Women Total Men Women Total Men Women Total no. of employees Fixed-term 30 18 48 25 14 39 40 35 75 Permanent 1,390 784 2,174 1,189 712 1,901 1,509 861 2,370 Total 1,420 802 2,222 1,214 726 1,940 1,549 869 2,445
Permanent company staff by employee type (full time vs. part time) and gender 2015 2016 2017
Men Women Total Men Women Total Men Women Total no. of employees Full time 1,382 727 2,109 1,184 659 1,843 1,542 828 2,370 Part time 8 57 65 5 53 58 7 68 75 Total 1,390 784 2,174 1,189 712 1,901 1,549 896 2,445
Company population by employee category and age 2015 2016 2017
<30 30-50 >50 Total <30 30-50 >50 Total <30 30-50 >50 Total no. of employees Executives - 35 32 67 - 27 38 65 - 24 43 67 Journalists 7 450 582 1,039 10 366 498 874 11 487 670 1,168 Office workers 6 563 303 872 11 471 349 831 12 380 623 1,015 Manual workers - 154 90 244 1 70 99 170 1 109 85 195 Total 13 1,202 1,007 2,222 22 934 984 1,940 24 1,000 1,421 2,445
9Incoming and outgoing turnover broken down by age and gender (2017) no. of employees Incoming Outgoing
8 The figure of the total number of Group employees as at 31.12.2017 also includes the 435 employees acquired through the merger with ITEDI.
9 The data regarding turnover in 2017 also includes the turnover of the former company ITEDI as at 01/01/2017. ITEDI became part of the Group in July 2017. 57
Consolidated Non-Financial Statement
<30 30-50 >50 Total Turnover <30 30-50 >50 Total Turnover
Men 11 106 42 159 10.26% 5 95 67 167 10.78% Women 16 86 26 128 14.29% 12 46 23 81 9.04% Total 27 192 68 287 11.74 17 141 90 248 10.14%
Incoming and outgoing turnover broken down by age and gender (2016) Incoming Outgoing
<30 30-50 >50 Total Turnover <30 30-50 >50 Total Turnover no. of employees Men 15 144 70 229 18.86% 10 154 194 358 29.49% Women 15 48 18 81 11.16% 8 63 73 144 19.83% Total 30 192 88 310 15.98% 18 217 267 502 25.88%
Incoming and outgoing turnover broken down by age and gender (2015) Incoming Outgoing
<30 30-50 >50 Total Turnover <30 30-50 >50 Total Turnover no. of employees Men 11 41 5 57 4.01% 9 42 104 155 10.92% Women 4 41 3 48 5.99% 5 41 48 94 11.72% Total 15 82 8 105 4.73% 14 83 152 249 11.21%
Protected categories 2015 2016 2017
Men Women Total Men Women Total Men Women Total no. of employees Executives ------Journalists ------Office workers 34 29 63 42 19 61 40 33 73 Manual workers 14 4 18 8 1 9 8 2 10 Total 48 33 81 50 20 70 48 35 83
Training Average hours of training per person by professional role and gender 2015 2016 2017
Men Women Total Men Women Total Men Women Total no. hours Executives 17.6 10.2 16.1 15.4 3.8 13.1 13.8 26.7 16 Journalists 6.2 6.6 6.3 0.3 0.5 0.4 1.6 1.8 2 Office workers 5.6 7.2 6.3 7.4 6.9 7.1 9.5 10.2 10 Manual workers 0.8 1.0 0.9 0.5 0.8 0.6 0.8 1.6 1 Total 5.7 6.6 6.0 3.5 4.0 3.7 4.7 6.5 5
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Consolidated Non-Financial Statement
Health and safety
Health and safety indicators 2015 2016 2017
Men Women Total Men Women Total Men Women Total
Injury severity index10 15.23 21.53 17.60 46.52 42.74 45.12 45.48 59.73 50.65 Occupational disease index11 ------Absenteeism rate12 9% 8% 9% 16% 15% 15% 4% 4% 4% Injury rate13 2.41 0.88 1.85 2.01 2.04 2.02 1.36 1.82 1.52
Injuries 2015 2016 2017 Men Women Total Men Women Total Men Women Total no. injuries Workplace injuries 11 1 12 7 - 7 10 - 10 Commuting injuries 13 4 17 12 12 24 6 12 18 Total 24 5 29 19 12 31 16 12 28
Environment14 Paper used [tonnes] 2015 2016 2017
Total % Total % Total %
Virgin paper [t] 21,779 26.0% 19,371 25.9% 19,269 23.1% Certified paper (FSC-PEFC) [t] - - - - 16,380 19.6% Recycled paper [t] 61,849 74.0% 55,520 74.1% 47,875 57.3% Total [t] 83,628 100% 74,891 100% 83,524 100%
10 The injury severity index is the relationship between the total number of days lost due to injuries and occupational disease and the total number of working hours in the same period, multiplied by 200,000. 11 The occupational disease index is the relationship between the number of cases of occupational disease and the total number of hours worked in the same period, multiplied by 200,000. 12 The absenteeism rate is the relationship between the total number of days of absence and the total number of working days in the same period, expressed as a percentage. 13 The injury rate is the relationship between the total number of injuries and the total number of hours worked in the same period, multiplied by 200,000. 14 The Group’s electricity consumption includes high-frequency absorption. As regards natural gas, the conversion parameter applied was 9.7 (as notified by the Lazio Region in 2016) in order to include a precautionary margin of plant efficiencies. 59
Consolidated Non-Financial Statement
Other materials 2015 2016 2017
Total % Total % Total %
Offset plates [m2] N/A N/A 162,872 27.9% 194,500 34.1% Flexo plates [m2] N/A N/A 420,493 72.1% 376,291 65.9% Total plates [m] N/A N/A 583,365 100% 570,791 100% Ink for Offset plates [kg] N/A N/A 347,013 17.4% 354,519 22.3% Ink for Flexo plates [kg] N/A N/A 1,648,465 82.6% 1,237,257 77.7% Total ink [kg] N/A N/A 1,995,478 100% 1,591,776 100%
Energy Consumption15 2015 2016 2017
Total Total GJ Total Total GJ Total Total GJ
Electricity [kWh] 56,935,400 204,967 GJ 54,836,140 197,410 GJ 56,321,695 202,758 GJ Natural Gas [m3] 903,564 35,248 GJ 914,062 35,658 GJ 1,037,926 40,489 GJ Diesel [t] 120 5,154 GJ 130 5,595 GJ 102 4,374 GJ
Water consumption 2015 2016 2017
Total Total Total Water drawn from the 95,560 84,666 102,818 public water supply [m3] Total 95,560 84,666 102,818
Waste 2015 2016 2017
Total % Total % Total %
Hazardous [t] 3,803 45.6% 3,624 39.3% 3,617 35.38% Non-hazardous [t] 4,541 54.4% 5,591 60.7% 6,606 64.62% Total [t] 8,344 100% 9,215 100% 10,222 100%
Waste for disposal 2015 2016 2017
Total % Total Total % Total Total % Total
Recycling [t] 3,320 39.8% 1,344 14.6% 1,242 12.15% Landfill [t] 5,024 60.2% 5 0.1% - 0.0% Other [t] - 0.0% 7,866 85.3% 8,981 87.85% Total 8,344 100% 9,215 100% 10,222 100%
15 Conversion factors used to calculate electricity consumption: 1 kWh = 0.0036 GJ (electricity), 1 m3 = 0.03901 GJ (natural gas) and 1 t = 42.88 GJ (diesel).
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Consolidated Non-Financial Statement
Table illustrating the reconciliation of material aspects and GRI-G4 Material topic (materiality GRI-G4 aspect - Specific standard Matters subject to Legislative MACRO AREA index) disclosure and Media Sector Decree no. 254/16 Fight against active and passive Funding sources Economic performance corruption
Economic performance Economic performance
Transparency of information Economic and corporate responsibility Labelling of products and services; User satisfaction audience interaction Media industry and business - model Environment Responsible supply chain Transport; Raw materials
Governance - Governance and compliance Fight against active and passive Business integrity Anti-corruption; compliance corruption Independence and editorial Content creation; Economic responsibility performance
Content quality Content creation Responsible advertising and Product responsibility Marketing communication marketing Cultural promotion and local Social Media literacy participation
Privacy and data protection Customer privacy Accessibility and user- - friendliness of the service Enhancement and development Staff-related Employment; Training and education of skills Responsibility to Working conditions and Health and safety in the workplace; Staff-related employees practices Industrial relations Diversity and equal Diversity and equal opportunities; Staff-related opportunities Equal pay for men and women Staff-related Worker health and safety Occupational health and safety Process efficiency and paper Environment Raw materials management Environment Emissions and the environment Emissions; Energy; Waste Environmental responsibility Environment Distribution and logistics Transport Management of water Environment Water resources
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Consolidated Non-Financial Statement
Scope of material aspects of the GEDI Group
MATERIAL ASPECTS Scope of material aspects Categories Internal External Economic Economic performance GEDI - Environmental Raw materials GEDI - Energy GEDI - Water GEDI - Emissions GEDI - Effluents and waste GEDI - Products and services GEDI - Transport GEDI - Social Subcategory: Labour practices and suitable working conditions Employment GEDI - Labour/Management Relations GEDI - Occupational health and safety GEDI - Training and education GEDI - Diversity and equal opportunities GEDI - Equal pay for men and women GEDI - Social Subcategory: Society Local communities GEDI - Anti-corruption GEDI - Compliance GEDI - Social Subcategory: Product responsibility Marketing communication GEDI - Customer privacy GEDI - Compliance GEDI - GRI Media Sector Content creation GEDI - Audience interaction GEDI - Media literacy GEDI -
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Consolidated Non-Financial Statement
GRI Content Index The 2017 Sustainability Report of the GEDI Group has been drafted on the basis of the GRI Global Reporting Initiative - G4 guidelines in compliance with the “In accordance - Core” option. The table below specifies the Group’s information based on the GRI - G4 guidelines with reference to the GEDI materiality analysis.
Indicator Page references/notes GENERAL STANDARD DISCLOSURE Strategy and analysis Statement from the most senior decision-maker of the organisation about G4 - 1 the relevance of sustainability to the organisation and the organisation’s 4 strategy for addressing sustainability Organisational profile G4 - 3 Name of the organisation 6; 10
G4 - 4 Primary brands, products, and services 10-14
G4 - 5 Headquarters 10-14
G4 - 6 Countries where the organisation operates 10-14
G4 - 7 Nature of ownership and legal form 19-20
G4 - 8 Markets served 10-14
G4 - 9 Scale of the organisation 10-14; 24; 42; 56
G4 - 10 Workforce characteristics 42-47; 57
G4 - 11 Percentage of total employees covered by collective bargaining agreements 44
G4 - 12 Description of the organisation's supply chain 49-50 Significant changes during the reporting period regarding the organisation’s G4 - 13 5-7 size, structure, ownership, or its supply chain G4 - 14 Application of the precautionary approach or principle 19-20 Externally developed economic, environmental and social charters, G4 - 15 principles, or other initiatives to which the organisation subscribes or which 30-34 it endorses Memberships of associations (such as industry associations) and national or G4 - 16 international advocacy organisations in which the organisation holds a 30-32 position on the governance body Material aspects and boundaries All entities included in the organisation’s consolidated financial statements G4 - 17 10-14; 5-7 or equivalent documents G4 - 18 Process for defining the report content 5-6; 16-17 G4 - 19 Material aspects identified 16-17 G4 - 20 Material aspects within the organisation 16-17 G4 - 21 Material aspects outside the organisation 16-17 G4 - 22 Any restatements of information provided in previous reports 5-7 Significant changes in the Scope and Aspect Boundaries with respect to the G4 - 23 5-7 previous Sustainability Report Stakeholder engagement G4 - 24 Stakeholder groups engaged by the organisation 16-17
G4 - 25 Stakeholder identification process 16-17
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Consolidated Non-Financial Statement
Indicator Page references/notes The organisation’s approach to stakeholder engagement, including G4 - 26 16-17 frequency of engagement by type Key topics and concerns that have been raised through stakeholder G4 - 27 16-17 engagement Report Profile G4 - 28 Reporting period for information provided 5-7 G4 - 29 Date of most recent previous report 5-7 G4 - 30 Reporting cycle 5-7 G4 - 31 Contact point for questions regarding the report or its contents 5-7 G4 - 32 GRI content index 63-66 The organisation’s policy and current practice with regard to seeking G4 - 33 67 external assurance Governance G4 - 34 Governance structure of the organisation 18-19 Ethics and Integrity G4 - 56 The values, principles, standards and code of conduct of the organisation 23; 30-34
Indicator Page references/notes Omission SPECIFIC STANDARD DISCLOSURE ECONOMIC INDICATORS MATERIAL ASPECT: Economic performance How the organisation manages the material G4 - DMA 27-29 aspect or its impacts G4 - EC1 Direct economic value generated and distributed 28-29
G4 - EC4 Financial assistance received from government 30 Significant funding and other support received G4 - M1 30 from non-governmental sources ENVIRONMENTAL INDICATORS MATERIAL ASPECT: Raw materials How the organisation manages the material G4 - DMA 49-50 aspect or its impacts G4 - EN1 Materials used by weight or volume 49-50; 59 MATERIAL ASPECT: Energy How the organisation manages the material G4 - DMA 49-52 aspect or its impacts G4 - EN3 Internal energy consumption 50-52; 60
G51 G4 - EN6 Reduction of energy consumption 50-52 MATERIAL ASPECT: Water How the organisation manages the material G4 - DMA 54 aspect or its impacts G4 - EN8 Water withdrawn by source 54; 60 MATERIAL ASPECT: Emissions How the organisation manages the material G4 - DMA 52-53 aspect or its impacts
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Consolidated Non-Financial Statement
Indicator Page references/notes Omission G4 - EN15 Direct greenhouse gas emissions (Scope I) 52-53 G4 - EN16 Indirect greenhouse gas emissions (Scope II) 52-53 G4 - EN17 Other indirect greenhouse gas emissions (Scope III) 52-53 MATERIAL ASPECT: Effluents and waste How the organisation manages the material G4 - DMA 53-54 aspect or its impacts G4 - EN23 Total weight of waste by type and disposal method 53-54; 59 MATERIAL ASPECT: Transport How the organisation manages the material G4 - DMA 51-52; 56 aspect or its impacts Significant environmental impacts of transporting G4 - EN30 51-52; 56 products and other goods and materials SOCIAL INDICATORS Subcategory: Labour practices and suitable working conditions MATERIAL ASPECT: Employment How the organisation manages the material G4 - DMA 42 aspect or its impacts Total number and rates of new employee hires and G4 - LA1 42-44; 58 employee turnover by age group, gender and region MATERIAL ASPECT: Labour/Management Relations How the organisation manages the material G4 - DMA 44 aspect or its impacts Minimum notice periods regarding operational G4 - LA4 44 changes MATERIAL ASPECT: Occupational health and safety How the organisation manages the material G4 - DMA 41; 47-48 aspect or its impacts Type of injury and rates of injury, occupational diseases, lost days, and absenteeism and total G4 - LA6 47-48; 59 number of work-related fatalities, by region and by gender MATERIAL ASPECT: Training and education How the organisation manages the material G4 - DMA 42; 46-47 aspect or its impacts Average hours of training per year per employee G4 - LA9 46-47; 58 . by gender, and by employee category MATERIAL ASPECT: Diversity and equal opportunities How the organisation manages the material G4 - DMA 42; 45-46 aspect or its impacts Composition of governance bodies and breakdown of employees per employee category G4 - LA12 19-20; 45-46; 57-58 according to gender, age group and other indicators of diversity MATERIAL ASPECT: Equal pay for men and women How the organisation manages the material G4 - DMA 42; 46 aspect or its impacts Ratio of average remuneration of women to men G4 - LA13 by employee category, by significant locations of 46 operation Subcategory: Society MATERIAL ASPECT: Local communities How the organisation manages the material G4 - DMA 34-41 aspect or its impacts 65
Consolidated Non-Financial Statement
Indicator Page references/notes Omission Percentage of operations with implemented local G4 - SO1 community engagement, impact assessments 34-41 and development programs MATERIAL ASPECT: Anti-corruption How the organisation manages the material G4 - DMA 19-22 aspect or its impacts Percentage of employees that have received G4 - SO4 training on anti-corruption policies and 22 procedures Confirmed incidents of corruption and actions G4 - SO5 22 taken MATERIAL ASPECT: Compliance How the organisation manages the material G4 - DMA 19-22 aspect or its impacts Monetary value of significant fines and total No significant sanctions for non- G4 - SO8 number of non-monetary sanctions for non- compliance with laws and regulations compliance with laws and regulations were issued in 2017 Subcategory: Product responsibility MATERIAL ASPECT: Marketing communication How the organisation manages the material G4 - DMA 32-33 aspect or its impacts Total number of incidents of non-compliance with regulations and voluntary codes concerning G4 - PR7 32-33 marketing communications, including advertising, promotion, and sponsorship, by type of outcomes MATERIAL ASPECT: Customer privacy How the organisation manages the material G4 - DMA 34 aspect or its impacts Total number of substantiated complaints G4 - PR8 regarding breaches of customer privacy and 34 losses of customer data MATERIAL ASPECT: Compliance How the organisation manages the material G4 - DMA 30-34 aspect or its impacts No significant sanctions for non- Monetary value of significant fines for non- compliance with laws or regulations G4 - PR9 compliance with laws or regulations concerning concerning the provision and use of the provision and use of products and services products and services were issued in 2017 MATERIAL ASPECT: Content creation How the organisation manages the material G4 - DMA 29-33 aspect or its impacts Methodology for assessing and monitoring G4 - M2 29-33 adherence to content creation values Actions taken to improve adherence to content G4 - M3 29-33 creation values, and results obtained MATERIAL ASPECT: Audience interaction How the organisation manages the material G4 - DMA 24-25; 34-40 aspect or its impacts G4 - M6 Methods to interact with audiences and results 24-25; 34-40 MATERIAL ASPECT: Media literacy How the organisation manages the material G4 - DMA 34-40 aspect or its impacts Actions taken to empower audiences through G4 - M7 media literacy skills development and results 34-40 obtained
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