Sustainability Report 2017 Sustainability Report

sustainability REPORT

Sustainability Report 2017 2017

www.grimaldi.napoli.it www.grimaldi.napoli.it Tradition, responsibility, innovation. 2017 Sustainability REPORT

Summary

1 Letter to Stakeholders 1 7.2.4 Workplace health and safety 33 7.3 Our suppliers and agents 34 2 Methodological note 3 7.4 Institutions and trade associations 36 3 A year in a page: our 2017 4 7.5 Safety and Security 37 7.5.1 Safety 38 4 The Grimaldi Group 5 7.5.2 Security 41 4.1 Our story 8 7.6 Our role in the community 43 4.1.2 70 Years of Finnlines 10 7.6.1 Investing in the future: collaborations with 4.2 The business model 12 entities, universities and research institutes 43 7.6.2 The Grimaldi Foundation Onlus 46 4.3 Our Mission and our Values 13 7.6.3 Humanitarian aid 50 5 Governance system and business 8 Environmental responsibility 51 ethics 15 8.1 The regulatory framework of reference 51 5.1 231 Model and Code of Conduct 16 8.2 Our approach to the challenges of the future 53 5.2 Compliance 17 8.2.1 The integrated management system 53 6 Our sustainability strategy 18 8.3 We invest in innovation 55 8.3.1 Grimaldi Green 5th Generation (GG5G) 57 6.1 Our stakeholders and channels for dialogue 20 8.3.2 Research projects and innovation 57 6.2 Grimaldi’s highlights 21 8.4 Environmental performance 59 6.3 Materiality analysis 23 6.4 Economic performance: 9 Objectives 62 creating shared value 25 10 Commitment List 64 7 We create value for our stakeholders 27 Annex 65 7.1 Our customers 27 Materiality Analysis Process 65 7.1.1 Passenger transportation 28 7.1.2 Freight transport 28 Reconciliation table for material issues and GRI G4 indexes 66 7.2 Our people 30 7.2.1 Personnel selection policies 31 The reporting perimeter 66 7.2.2 Training and skill development 32 GRI indexes 67 7.2.3 Performance evaluation 32 GRI Content Index 81

2017 Sustainability Report III Graphic Design: Marco Di Lorenzo Letter to 1 Stakeholders

Dear Stakeholders, this 2017 Sustainability Report gives us the opportunity well as the useful life of the ships). to review the Grimaldi Group’s economic, social and The programme to upgrade and expand the fleet con- environmental performance, continuing along the path tinued in 2017 with the delivery of the new vessels At- we began in 2015. lantic Sky and Atlantic Sun to Atlantic Container Line. From the point of view of economic results, the 2017 These are the fourth and fifth units of the 5 new gener- financial year ended with a consolidated net profit of ation “G4” vessels from the Chinese Hudong shipyard € 298 million (€ 286 million in financial year 2016). (replacing the Atlantic Cartier and Atlantic Conveyor). The increase in the net profit derived mainly from the Grimaldi Euromed also took delivery in the year in improved operating profit, which showed an increase question of two new vessels (the Grande Baltimora in EBITDA of over € 18 million compared to 2016 (+3%). and Grande New York) from the Chinese Jinling ship- In particular, the subsidiary Finnlines ended 2017's fi- yard. The Grande Halifax, the last ship commissioned nancial year with a net profit of € 82.7 million (+20% to these ship builders, was delivered in January 2018. compared to 2016), the best result achieved in its 70 The 7 remaining ships under construction (repre- years of business. senting an investment of approximately € 300 million) will be delivered by the Yangfan shipyard by 2020. In 2017 the Group generated a value of approximately € 2.9 billion, with an increase of more than The efforts aimed at reducing harmful emissions un- € 200 million compared to 2016 (+9%), of which derwent a significant acceleration in the early months more than 80% was distributed among suppliers, of 2018. Following the design studies launched in employees, lenders, the Public Administration and the 2016, the Group recently signed the contract for the social community. The distributed economic value is construction of 12 new ships, named “Grimaldi Green a very significant indicator of the Group’s social im- 5th Generation” (GG5G), under the ro/ro category, for pact and thus represents an aspect that we wish to a total investment of approximately US$ 800 million. highlight. The Chinese Jinling shipyard was awarded the order, Environmental and social sustainability are be- further strengthening the partnership with the Group. coming increasingly concrete and crucial concepts The new ships, which are expected to be delivered in operating activities and corporate strategies, for starting from 2020, will be capable of transporting our Group. more than 7,800 linear metres of rolling stock, equiv- Among the strong points it is worth highlighting the alent to around 500 trailers. The garage loading cause of a modern fleet, technologically at the leading pacity of these ships is twice that of the largest ships edge and eco-friendly, which at the end of 2017 was currently operated by our Group and three times that made up of over 120 ships, 112 of which directly owned. of the previous generation of ro/ro ships, but with the They have an average age of approximately 12 years same fuel consumption at the same speed: this means (significantly lower than the average for the industry as twice the efficiency measured in emissions per tonne

2017 Sustainability Report 1 Ch.1 - Letter to Stakeholders

transported. methods of transport by sea, through a process that Reducing fuel consumption and cutting harmful involves gradual de-carbonisation and consequent emissions are fundamental objectives of our Group. digitalisation of ships, with significant economic invest- The GG5G ships are the first examples of a new series ments made possible by the concentration of opera- of hybrid ro/ro ships, which use fossil fuels during nav- tors and the exponential development of inter-modal igation, opportunely treated after combustion with ex- transport. haust gas treatment systems to reduce sulphur (SOx) Over the last few years, the Group has repeatedly and particulate (PM) emissions, and electricity while been recognised by customers and specialised pub- at berth, guaranteeing zero emissions in port. These lications for the services it offers. ships are, in fact, capable of meeting the energy re- Among the most recent and prestigious recognitions quirements for the on-board activities using only elec- obtained by the Group we can note the following: tricity stored by lithium batteries that recharge during • the recognition among the best global suppliers navigation. by the motor manufacturer Ford Motor Company All the ships ordered, and those delivered, are part during the 20th edition of the World Excellence of a single investment program, with a total value of Awards, for achieving the highest levels of excel- around € 5 billion. The program began in 2010 with lence in terms of quality, delivery, value and inno- the objectives of extending the network, increasing vation; the frequency and capacity of the services, reducing • the award in Detroit of Shipping Company of average fleet age and improving quality standards and the Year during the fourth edition of the North energy efficiency, reducing at the same time environ- America Automotive Global Awards. The event mental impact. was organised by "Three6Zero", a publishing The Grimaldi Group interacts constantly with the group with strong specialisation in the automotive local communities of the countries in which it oper- sector; ates and promotes social solidarity initiatives. • Assignment of the Leadership Excellence Award The Grimaldi Foundation Onlus (wholly owned by the by the magazine Panorama, during the stage of same Shareholders of the Grimaldi Family, who con- the "Panorama d'Italia" tour in New York, as an ex- trol the Parent Company Grimaldi Group) celebrated ample of Italian distinction in the world and incar- its first decade of activity in 2017. The grants awarded for social projects promoted and supported up to now nation of excellence at sea; amount to € 5.4 million, of which approximately € 1.2 • the assignment to Minoan Lines of the award of million awarded only in 2017, and distributed among Best Corporate Brand in the sector of passenger 126 projects of variable durations. 1% of the profits transportation in Greece (“Corporate Super- of the three main Group companies (Grimaldi Group brands Greece”); S.p.A., Grimaldi Euromed S.p.A. and Grimaldi Deep • the assignment to Atlantic Container Line with the Sea S.p.A.) was also devolved this year in favour of the Service Excellence Award 2017 by Diageo, the Foundation. largest global producer of spirits and beer. The 10-year anniversary of the Foundation coincided With this Report we renew our endorsement of the with the launch of the first nucleus of the Family principles set forth by Agenda 2030 for sustainable School, an ambitious project managed on its own that development adopted on 25 September 2015 by the involves some of the leading and most experienced General Assembly of the United Nations expressed social players in the area in order to create a hub of through active support for achievement of the Sus- information for training and supporting all members of tainable Development Goals for 2030, which include, the family. For the creation of the Family School, the among other things, defeating poverty, quality educa- Foundation plans to invest more than € 10 million to tion, access to clean water and adequate health and purchase a building, intended to be a multi-functional hygiene services, clean and accessible energy. social centre, and more than € 1 million per year to cover the running costs. 28 June 2018 From 28 September to 1 October 2017, over 600 del- egates coming from all over Europe, North Africa, the Gian Luca Grimaldi Near East and North America participated in the XXI President Euromed Convention “From Land to Sea”, organised in Sardinia by the Group. The focus of discussions was the development of ever-increasingly eco-sustainable

2 2017 Sustainability Report Methodological 2 note

he Grimaldi Group Sustainability Report on 31 Group’s objectives in relation to sustainability perfor- TDecember 2017 was prepared in compliance mance and recognition of results achieved. The fig- with the G4 “Sustainability Reporting Guidelines”, ures were calculated individually on the basis of the issued in 2013 by the GRI-Global Reporting Initiative. general accounting figures and the Group’s other IT This is the third Sustainability Report the Group has systems. In the case of estimates, the method used to prepared and represents a continuation of the process quantify indexes is provided. of transparent reporting and management of sustaina- The Report shows, if not otherwise indicated, the bility issues started in 2015. situation related to the 3-year period 2015-2017, in The identification of the significant aspects to be in- order to provide readers with a point of comparison cluded within the document involved a materiality pro- for economic, social, environmental and governance cess, in line with the provisions of the aforementioned performance. There were no limitations or changes guidelines and in consideration of the principles of that could have a significant influence on the ability to stakeholder-inclusion, completeness and analysis of make comparisons between the years. Any relevant the relevant context. limitations are indicated within the document on a The application level used for the GRI G4 guidelines case-by-case basis. is “Core”. The GRI-G4 Content Index is reported in an For more information on the perimeter and on the annex, which summarises the content of the Report in criteria for processing of data related to personnel reference to the GRI indicators. please see the paragraph “The reporting perimeter” The document was prepared on the basis of the in the Annex.

2017 Sustainability Report 3 3 A year in a page: our 2017

1947 - 2017 2007 - 2017 70years of the Grimaldi Group 10years of the Grimaldi Foundation € 1,173,210 Disbursed by the 3.1 OVER GRIMALDI FOUNDATION ONLUS million 25,000 in favour of social initiatives

PEOPLE EMPLOYED PASSENGERS 7% in related industries* 1% Freight rates 5% Other operating 14,806 PEOPLE € 2,922 sources mln Tourist segment 87% REVENUE Agency and 9,248 5,558 logistics services

MARITIME SHORE PERSONNEL PERSONNEL CERTIFIED SUPPLIERS Iso 9001 (90%) Iso 14001 (26%) OhsAs 18001 (7%) 1,691 13,115

SO2 -6.2 % emissions / nautical miles (2017 v 2016) WOMEN MEN

CO2 -3.3 % 23% emissions / nautical miles Extra EU / Rest (2017 v 2016) 77% EU of the world

* This fi gure was calculated using the employment multiplier of 1.72 indicated for the maritime sector in the document "V Report on the Sea Economy - Maritime cluster and development in Italy" (Centro Studi Investimenti Sociali - CENSIS - on the account of the Federazione del Mare, 2015)

4 2017 Sustainability Report The Grimaldi Group 4 Multinational integrated logistics conglomerate, specialising in the maritime transport of automobiles, rolling stock, containers and passengers.

he Grimaldi Group is a perfectly integrated Entirely owned by the Grimaldi family, the Group Tpolycentric multinational business, which invests combines a global market vision with family tradi- to keep its fl eet modern and develop port terminals, tions and values. mainly using owned ships, to transport freight and passengers.

Fleet

Commercial GRIMALDI GROUP agencies INTEGRATED MODEL

Port terminals and logistics companies

Six companies manage the ships in the fl eet, while includes over 90 commercial agencies, 32 of which port and land logistics are organised through con- are directly controlled, which off ers extensive com- trolling 20 port terminals and other logistics commercial penetration in all the main global markets in panies in several countries. The agency network which the fl eet operates.

2017 Sustainability Report 5 Ch.4 - The Grimaldi Group

GRIMALDI GROUP S.P.A Italy

SHIPPING LOGISTICS AGENCIES

Grimaldi Euromed Grimaldi Terminal Port and terminal Grimaldi Logistica Grimaldi Compagnia S.p.A Euro/Med S.C.p.A Multiservices Ltd España S.I. di Nav. Do Brazil LTDA Italy Italy Nigeria Spain Brazil Grimaldi Deep Sea Valencia Terminal Antwerp Euro Grimaldi Grimaldi S.p.A Europa S.I. Terminal N.V. Potrugal LDA Germany GmbH Italy Spain Belgium Portugal Germany Malta Motorways Antwerp Lashing Grimaldi Marangolo Grimaldi Togo Grimaldi Ghana of the Sea Ltd & Securing N.V. Terminal Catania S.r.l. S.A. Ltd Malta Belgium Italy Togo Ghana Atlantic Container C.E.T.A.L. Socomar Grimaldi Nigeria Grimaldi Sardegna Line AB S.r.l. Port Terminal S.A. Ltd S.r.l. Sweden Italy Camerun Nigeria Italy Minoan Lines Savona Terminal Grimaldi Terminal Grimaldi Maritime Grimaldi Belgium S.A. Auto S.r.l. Barcelona S.I. Agencies Sweden AB N.V. Greece Italy Spain Sweden Belgium Finnlines Scandinavian Auto Euromed Ireland Grimaldi Agencies Grimaldi Senegal Plc Logistics A/S Logistics Ltd UK Ltd S.A. Finland Denmark Ireland United Kingdom Senegal Wallhamn Antwerp Container Grimaldi Logistica Michele Autuori AB Repair N.V. Genova S.r.l. S.r.l. Sweden Belgium Italy Italy Marittima L.V. Ghianda Spedizioni S.r.l. S.r.l. Italy Italy Grimaldi Benin Grimaldi S.A. Catania S.r.l. Benin Italy

The process of rationalising the Group’s structure contractor in respect of certain automotive manu- that began in 2008 continued during 2017, with the facturers and also pursues its business as a travel transformation of Grimaldi Group S.p.A. from an op- agency and tour operator. In this regard it acts as erating to a holding company. an agent selling passenger tickets for the Group’s The Parent Company Grimaldi Group S.p.A. mainly vessels. covers the role of the holding company but con- Below is a breakdown of the Group's 2017 revenue tinues, albeit in a residual manner, to be the main (€) by type of load.

22.5% breakdown of revenue (€) by type of load.

5.9% 4.5% 12.9% 29.3%

9.3% 14.0%

1.6%

2017 REVENUE New Used New RoRo Used RoRo Trailer/Mafi Passengers Containers General cargo cars cars

6 2017 Sustainability Report Ch.4 - The Grimaldi Group

FIN NL IN E

E U

E D O IN A

N CA M R CA RRIER S/MED-A S ME HORT SEA

ACL

D EEP SEA

The Group’s ships operate on the following routes:

· Grimaldi Euromed S.p.A.: specialised in the transportation of rolling stock between North Europe and the Mediterranean (Euromed), of passengers and rolling freight through the Motorways of the Sea in the Med- iterranean (Short Sea), and freight transport between the Mediterranean and North America (Car carriers / MED-AME); · Grimaldi Deep Sea S.p.A.: transporting rolling stock and containers between ports of North Europe, West Africa and South America (Deepsea) and between the Mediterranean and North America (Car carriers / MED-AME); · Atlantic Container Line AB (ACL): operating maritime links mainly dedicated to container traffic connecting North America, South America, North Europe, the Mediterranean and West Africa; · Finnlines Plc: transporting freight and passengers in Northern Europe and the Baltic; · Minoan Lines S.A.: providing short-sea shipping (freight and passengers) between Crete and continental Greece.

2017 Sustainability Report 7 Ch.4 - The Grimaldi Group

Guido and his brothers Luigi, Mario, Aldo and Ugo Grimaldi create a new ship-owning company, 1947 Fratelli Grimaldi SpA, purchasing a Liberty ship.

The Group begins a regular connection between Italy and England to transport Fiat cars heading for the British market, quickly gaining the trust of 1969 the largest car manufacturers around the world.

The brothers Guido, Mario and Aldo Grimaldi decide to separate the Group into two areas (Naples and Genoa). Ugo remains a minority shareholder in the companies based in Naples 1995 and Genoa, but later sells all of his equity investments in 1996. 4.1 Our story The Group acquires ACL (Atlantic Container Line), the leading Ro-Ro operator for connections between 2017 was a fundamental year for the Grimaldi Group Europe and North America (later delisted from the 2001 as it celebrated the centenary of the birth of its Oslo stock market). founder, Guido Grimaldi, and 70 years of business. The Group sets up Malta Motorways of the Sea To commemorate this milestone, a book on the his- (which oﬀ ers connections between Italy and tory of the Group and of the Grimaldi family was pub- Malta), after the state controlled company Sea 2005 lished. Written by the journalists Bianca d’Antonio Malta goes bankrupt. and Justin Stares, the book is entitled: “Grimaldi Ar- matori: la storia di una famiglia e di una azienda” The Group acquires control over Finnlines, a (“Grimaldi Shipowners: the history of a family and Finnish company listed on the Helsinki Stock a company”). The book includes more than 300 Market, a leader in the Baltic and North Seas. 2006 photos as well as memories and anecdotes starting Finnlines oﬀ ers freight and passenger transport from the history of the Italian maritime community services in a geographical area characterised by just after the second world war. the highest economic growth in Europe. The Grimaldi Group, through its stakeholders and all its staff , has had deep roots in southern Italy for sev- The Group acquires control over Minoan Lines, a eral generations. With expansion, both organic and Greek company listed on the Athens Stock Market 2008 through acquisitions, these roots have grown, so and a leader in the ferry and Ro-Ro sector. much so that the business has become multinational and global, maintaining its headquarters in Naples. The company name is changed to “Grimaldi Group SpA” after a resolution passed on 2 February 2015 The connection between the Grimaldi Family and the by the Shareholders’ Meeting. 2015 sea dates back to 1348, the year in which the chron- The Group best year ever in terms of economic icles of the Kingdom of Naples tell us that Queen performance. Giovanna I gave the brothers Rajinerio, Richerio and Perino de Grimaldis a precious solid gold relic, as a guarantee for the hire of three ships. Grimaldi Group SpA acquires 100% of the equity In the second half of the 1800s, Gioacchino Lauro, investments of Finnlines. 2016 a ship owner from Sorrento, founded a steamship Publication of the Group’s fi rst Sustainability Report. company that became one of the fi rst Italian joint stock companies in the shipping sector. Launch of the new direct service for Mexico for the transport of rolling stock, project Gioacchino had a number of children, including: cargoes and automobiles. Achille, who inherited his father’s passion for the Signing of the agreement between Minoan Lines and sea and his business sense, became the largest Attica Holdings to transfer the entire equity package of 2017 European ship owner between 1960 and 1970, and Hellenic Seaways (to Attica Holdings) in exchange for Amelia, who married the lawyer and land owner Gio- transfer of the M/S Highspeed 7 (to the same Minoan vanni Grimaldi who, although a cultured man, lacked Lines) and M/S Superfast XII (to Grimaldi Euromed). the seagoing spirit of his ancestors.

8 2017 Sustainability Report Ch.4 - The Grimaldi Group

1947 - 2017 a passion for the sea and business sense. The birth and development of one of the most important private European fleets

It was Amelia, Giovanni’s wife, who gave her children a Starting in 2000, the company began a process to ac- passion for the sea and asked her brother Achille to take quire various maritime companies, including ACL, Finn- her son Guido under his wing. lines and Minoan Lines, achieving international leader- In 1947, Guido and his brothers Luigi, Mario, Aldo and ship in the ro/ro sector. Ugo Grimaldi founded a new shipping company, buying However, on 5 September 2010 the Grimaldi family was a Liberty vessel, a type of freight ship used by the Amer- hit hard. Guido Grimaldi passed away peacefully at his ican fleet during World War Two, and starting Fratelli home, aged nearly 93, and the Group and Italian ship- Grimaldi SpA and what would late on become one of ping lost one of the key figures in their shared history. the most important privately-owned fleets in Europe. Despite the loss, the Group continued to implement the While commercial activities grew constantly during the plan to strengthen its connections, starting the Mediter- 50s and 60s in various sectors, in 1970, the car carrier ranean Express service, which returned to the historic Warrington began regular service, transporting Fiat au- route between the Mediterranean and Western Africa. tomobiles from Italy to the British market. The strategic In 2017 the Group further strengthened its leadership agreement signed between Fratelli Grimaldi SpA and in maritime connections over the ocean thanks to the the car manufacturer based in Turin represented a stra- launch of the new direct service to Mexico for the trans- tegic opportunity for growth for the company, which in port of rolling stock, project cargoes and automobiles, this way began to create a complex network of com- as an extension of the regular service which connects mercial routes, initially in the Mediterranean and later in the Mediterranean to North America, operating very Europe, the Baltic Sea, West Africa and South America. successfully since 2015. The glorious ’80s represented another turning point In October 2017 the subsidiary Minoan Lines signed in the Company’s development. In fact, the Neapolitan an agreement in virtue with the Greek company Attica shipping company began an impressive reconversion Holdings for which it undertook to transfer the entire programme that led to the gradual abandoning of oil equity package (48.53%) of Hellenic Seaways and the trade in favour of a specialisation in ferry boats and au- counterparty undertook to transfer the catamaran High- tomobile transportation. speed 7 (to Minoan Lines) and the ro/pax vessel Super- The Grimaldi Group closed out the 1900s by imple- fast XII (to Grimaldi Euromed). The agreement became menting a plan to acquire new ships and to transform effective in June 2018, after receiving the approval of itself from a shipping company that merely owned and the Greek Antitrust Commission. operated ships and operated maritime traffic, to a terminal and logistics operator. In this way, the acquisition The catamaran Highspeed 7, renamed Santorini Palace, of terminals and hubs in the main ports used by the has already started to operate on the Heraklion – Cy- Group's ships began, from North Europe to the Mediter- clades Islands route from 13 June 2018, with a daily ranean and the coasts of Africa. All this in order to make itinerary. The ro/pax vessel Superfast XII, renamed traffic faster and goods more secure, with the use of Mykonos Palace, is deployed on the Chania – Piraeus owned structures independent from those of the ports. route.

2017 Sustainability Report 9 Ch.4 - The Grimaldi Group

4.1.2 70 Years of Finnlines a Grimaldi Group company

On 15 May 2017, during an event held in Helsinki, Finnlines is set up with six steam ships. 1947 the 70 years of history of Finnlines was celebrated. Finnlines is a leader in the transport of rolling stock and passengers in the Baltic Sea and the North New ships are built and new routes are Sea, with subsidiaries and agencies present in inaugurated for transporting paper, wood pulp 1950 Germany, Belgium, the United Kingdom, Sweden, and other forestry industry products. Denmark and Poland. The company also off ers port services in Helsinki and Turku. During the last 10 years, Finnlines has focused Launch of the passenger service. 1962 on developing and consolidating its business, re- newing its fl eet and investing in effi cient technologies. Currently the company off ers more than 170 weekly departures for freight transport and 80 departures for passenger transportation. Development of exports to Europe 1970 SIGNIFICANT EVENTS 1940. The Finnish merchant fl eet suff ers enormous End of the cruise programme. In 1982 the losses owing to the second world war. Finnlines, company introduces the "Jumbo" ro/ro ship 1980 founded in 1947, purchases six steamships which Arcturus. are put into service between the Baltic and the east coast of the United States. The Oy Ab Group consortium is set up, 1950. In the '50s new ships are built as new routes new company listed on the Helsinki stock are opened and the business grows. The ships exchange. In 1995, the regular service to 1990 load paper, wood pulp and other products of the Russia begins with the name TransRussia- forestry industry in the ports of southern Finland Express. heading for the United States and coal during the return trip. The same regular service is soon Start of the equity investment 2005 launched between the United Kingdom and Fin- of the Grimaldi Group. land. 1960. In 1962 Finnlines launches a passenger service, when the ro/pax vessel Hansa Express be- The Grimaldi Group begins to acquire a signifi cant position in the company. The ro/ro gins sailing between Hanko, Gotland and Trave- ships Finnbreeze, Finnsea, Finnsky, Finnsun, 2010 munde. The '60s are characterised by shipbuilding Finntide and Finnwave are introduced activities. 1970. In the '70s exports from the United States to Emanuele Grimaldi becomes the new CEO of Europe grew and the company adapted quickly. Finnlines. The company starts making various The fi rst Finnlines ship for trade in polar waters is investments in environmental technologies 2013 the Finntimber, to load zinc and lead in Greenland and a vast programme of restructuring the for Antwerp and Ykspihlaja (Finland). The gas tur- passenger areas on six of its Ro- Pax ships. bine ship Finnjet is delivered and the Finlandia is converted into a cruise ship and renamed Finnstar. It is the fi rst and only Finnlines ship for cruises. Grimaldi Group S.p.A. acquires ownership of all Finnlines Plc shares, completing an acquisition 2016 1980. The decade sees the end of the Finn- process that began in 2005 lines cruise programme and of the Enso-Gutzeit shipping activities. The Finnlines ships are Finnlines continues to concentrate its eﬀ orts on sailing around the world when Eff oa (a Finnish steamship company) decides to withdraw from reducing environmental impacts through new 2017 investments and innovative Finnlines. In 1982 the company introduces the solutions for its ships. "jumbo" ro/ro ship Arcturus.

10 2017 Sustainability Report Ch.4 - The Grimaldi Group

FINNLINES The company celebrated 70 years of history

1990. After a series of mergers, distributions and transferred to the port of Vuosaari. In the following name changes, the Oy Ab Group consortium is set years the company makes various investments in up. A new company listed on the Helsinki Stock environmental technologies and begins a vast pro- Exchange. In the early '90s, a series of four “ro/ro gramme of restructuring the passenger areas on six combination" ships are built in Poland. In 1995, Finn- of its ro/pax ships. lines launches a regular service to Russia under the 2016. Grimaldi Group S.p.A. acquires all the shares name TransRussia-Express. of Finnlines Plc, completing a process started in 2000. The stowage company Finnsteve is set up 2005. and agreements are also reached in other sectors. 2017. During the year the programme of invest- New ships are ordered, including five star ro/pax ments in environmental technologies launched by class ships from the Italian shipyard Fincantieri in Finnlines in 2014 is completed, for a total budget 2004. of € 100 million. The programme has led to the in- The equity investment of the Grimaldi Group in stallation of scrubbers on 20 ships; in addition, nine the Finnlines Group begins in 2005, as an interest hulls have undergone re-blading and two ships have based on a project for industrial cooperation, devel- been repainted with silicon-based antifouling paint. opment of the business and strategic alliance. A new investment programme, aimed at energy effi- 2007. Finnlines orders six new ro/ro ships from the ciency and reducing the emissions of the fleet, was Jinling shipyard in China. The business is hit by launched by Finnlines in the spring of 2017 with a strikes and by the beginning of the economic crisis planned budget of approximately € 70 million. The in 2008. The Grimaldi Group becomes an increas- core of the new initiative is the lengthening of four ingly significant part of Finnlines, drawing up a plan vessels of the “Breeze series" (with options for two for reducing the size of the fleet and at the same other vessels), with a capacity increase for each ship time increasing its loading capacity and efficiency. of approximately 1,000 linear metres. The capacity In June 2009, Emanuele Grimaldi is appointed Ex- increase of approximately 30% will entail a notable ecutive Chairman. reduction in emissions per unit of load transported. The first modified ship, the Finntide, is redelivered 2010. The economic depression produces its effects on 23 November 2017. but the situation seems to stabilise. The Grimaldi Group consolidates its presence in the company Again in 2017 Finnlines obtains, for the third con- and synergies continue to emerge. The company secutive time, a record profit of € 82.7 million, an is connected not only to the Grimaldi Group’s Eu- improvement of more than 20% compared to the ro-Med lines in the Mediterranean but also to the 2016 profit. east coast of the United States through ACL. Ship- After its first 70 years Finnlines is already projected ping agents in Russia and other Baltic countries towards the future and has great projects for the have access to the Group’s services in West Af- next 10 years: a modern fleet, further lengthenings rica and South America via transhipment at Ant- of the ships, new green structures, environmental werp. The ro/ro ships Finnbreeze, Finnsea, Finnsky, responsibility, safety for seafarers, low consump- Finnsun, Finntide and Finnwave are introduced. tion, digitalisation; these are some of the focal 2013. Emanuele Grimaldi becomes the new CEO points of the coming strategies that the company of Finnlines and the head office of the company is intends to undertake.

2017 Sustainability Report 11 Ch.4 - The Grimaldi Group

Financial year 2017 Ended with an increase in EBITDA of over € 18 million compared to 2016 (+3%).

4.2 The business model

The Grimaldi Group is well known as an industrial the application of a long-term business strategy de- operator, an outright leader in Europe and one of signed to add value via the horizontal and vertical the world’s leading ro/ro shipping companies. As integration of business. The fundamental elements such, the Group is a reliable partner for customers of this strategy, namely monitoring of costs and a ranging from multinational vehicle manufacturers to multi-annual policy of re-investing profi ts generated, road transport fi rms. are combined with constant attention to energy ef- The Group also holds an important position in pas- fi ciency, so as to limit the environmental impact of senger transport (ro/pax) at both national and Euro- vessels, and social responsibility, which is shown in pean level. the annual allocation of a portion of profi ts to the The Group’s competitive advantages derive from non-profi t Grimaldi Foundation Onlus.

The Group’s growth strategy developed therefore following an industrial arrangement considering six main lines, all closely interconnected.

Reinvestment Flexibility of Energy of profi ts the fl eet eﬃ ciency

Knowledge of Commercial Social the Business coverage sensitivity

At the basis of the Group’s strategy is the commitment edge of markets and the business, which translates to reinvest a large part of its profi ts, to guarantee the into fl exibility and an ability to quickly react to changes, effi cacy and effi ciency of its operations, while simulta- whether regulatory, geopolitical, or competitive. neously maintaining long-term competitiveness within With the strength of a century behind it, the Group has the market. over time consolidated considerable experience in 2017 ended with a net profi t, whose increase derives the maritime transport sector, overcoming crises and mainly from the improved operating profi t, which adapting its organisation to the requirements of the translates into higher EBITDA of over €18 million com- market. pared to 2016 (+3%). The third guideline in the business model is the ability Another line of the business model is in-depth knowl- to design and deploy vessels that are extremely fl ex-

12 2017 Sustainability Report Ch.4 - The Grimaldi Group

ible in terms of cargo mix and route, thereby making Over the last few years, the network of services of- them less exposed to volatility in any single market. fered has been extended and strengthened through The business can count on a fleet of over 120 ships, the opening of new routes and the inauguration of new 112 of which directly owned, with an average age of motorways of the sea. In April, a new direct service approximately 12 years (significantly lower than the for Mexico was launched for the transport of rolling average for the industry and the useful life of the stock, project cargoes and automobiles which leads ships). These are modern and technologically-ad- to an important expansion of long-range maritime con- vanced ships, deployed on regular lines, in a network nections. This is an extension of a regular service that connecting over 130 ports in 47 countries and 4 con- connects the Mediterranean to North America, suc- tinents. cessfully operated by the Group since 2015. In addition, during 2017, the programme to upgrade Another line of the model is constant attention to en- and expand the Group’s fleet continued with the de- ergy efficiency. In fact, the Group recently invested in livery to ACL of the new vessels Atlantic Sky and At- the construction of new ships, named “Grimaldi Green lantic Sun. These are the fourth and fifth of the five 5th Generation”, which will have twice the garage load new generation “G4” vessels built at the Chinese capacity compared to the largest ships operated by Hudong shipyard (replacing the two vessels Atlantic the Group and three times compared to the previous Cartier and Atlantic Conveyor). Two new vessels, the generation of ro-ro vessels, but with the same fuel Grande Baltimora and Grande New York, were also delivered to Grimaldi Euromed by the Chinese Jinling consumption at the same speed. The efficiency of the shipyard, respectively in July and October 2017. These new ships in terms of consumption per tonne trans- are the first two deliveries of an order of 10 PCTC (Pure ported will therefore be doubled. Car & Truck Carrier) ships to be deployed between the The last line of the business model is social respon- Mediterranean and North America. sibility, which is shown in the annual allocation of a The upgrade of the fleet goes hand in hand with that portion of profits to the non-profit Grimaldi Foundation of containers and handling and lifting equipment. Onlus (Non-profit Charity), which after 10 years of work The business model aims also to guarantee commer- has become a reference point in Naples and Southern cial coverage of multiple geographical areas (Medi- Italy. The foundation not only manages projects in fa- terranean Sea, Northern Europe, the Baltic, West Af- vour of families in difficulty but also allocates funds to rica, North and South America). meritorious associations or bodies.

4.3 Our Mission and our Values

The Group’s method of operating is based on three pillars that guide its activities and MISSION its relationships with all stakeholders.

MISSION "The Grimaldi Group’s mission is to provide efficient, reliable, innovative and high quality services for the maritime transport of freight and passengers, by constantly working to identify the needs and expectations of our customers. The Group is dedicated to VISION VALUES excellence, social responsibility and transport solutions that promote sustainable mobility for the environment."

2017 Sustainability Report 13 Ch.4 - The Grimaldi Group

The Group is dedicated to excellence, social responsibility and transport solutions that promote sustainable mobility in terms of the environment

VISION • Respect for legal and regulatory provisions in effect in the countries in which the Group operates; To achieve its mission, the Group works to continue • Honesty and integrity in business relationships; along the path to strategic growth, focussed on • Proper conduct in relations with customers and developing passenger and freight traffic and port quality in the services it provides; terminals, with the commitment to offer the market • Impartiality; the best guarantees for efficient corporate manage- • Respect for its employees and contract workers, ment, and maintaining a constructive dialogue with and for people in general; the larger community of stakeholders, with an eye to • Protection of the environment and safety, also in creating sustainable growth. terms of workplaces. VALUES The values that inspire the Grimaldi Group’s way of To achieve its objectives, the Grimaldi Group is in- working and how it interacts with all those people spired by the following principles: who work with it are the following: Our values Offer high quality services that satisfy or exceed customers' reasonable expectations and necessities. QUALITY Provide exhaustive information, efficiently and courteously, about the transport service prices and methods, so that customers can make informed decisions.

Avoid any discrimination based on age, sex, sexual orientation, health, nationality, political or religious beliefs. INTEGRATION Cooperate actively to achieve the Group's objectives. Share useful information with co-workers.

Provide services in a professional, independent and impartial manner, honestly and respecting the Group's methods, policies and working practices. PROFESSIONALISM Avoid any possible conflicts of interest, in particular in regards to personal, financial or family interests that could influence the independence of decision makers. SUBSTANCE Constantly improve the quality of services provided. Disseminate a culture of accident prevention and awareness of risks to worker health and safety, actively promoting the same, also through appropriate training INNOVATION courses and information. Develop and implement innovative technical solutions that reduce environmental impacts to a minimum and guarantee maximum safety levels. ENVIRONMENT Manage and mitigate the environmental impacts from Group activities.

14 2017 Sustainability Report Governance system 5 and business ethics

he governance system adopted by the Grimaldi Company is based on the traditional organisational TGroup is focused on maximising value, con- model consisting of the Shareholders’ Meeting, the trolling corporate risk and providing transparency in Board of Directors (BoD), the Board of Statutory Au- ditors, the independent auditing firm and the Super- relation to stakeholders. visory Board (pursuant to Italian Legislative Decree The governance model adopted by the Parent 231/2001).

SHAREHOLDERS’ MEETING

Represents all Shareholders Approves the Annual and Consolidated Financial Statements; In case of urgency, can adopt resolutions assigned to the Board of Directors and the Executive Committee.

BOARD OF STATUTORY AUDITORS BOARD OF DIRECTORS Chairman (Gian Luca Grimaldi), two Managing Directors (Emanuele Five auditors, including the Grimaldi, Diego Pacella) and a Director (Quintino Spetrini) Chairman, two standing auditors and two alternate auditors The BoD is responsible for ensuring objectives are achieved and for developing strategic guidelines. Provides the supervisory In addition, the Board of Directors creates guidelines for the risk function pursuant to articles management system, assesses their adequacy and identifies the 2403 and subsequent of main company actors involved. the Italian Civil Code.

In order to guarantee supervision, integrated man- the parent company’s Board of Directors also serve agement and the utilisation of industrial synergies as directors for the main subsidiaries. and know-how within the Group, certain members of

2017 Sustainability Report 15 Ch.5 - Governance system and business ethics

Code of Conduct defi nes the general standards behind company ethics

5.1 231 Model and Code of Conduct

Italian Legislative Decree no. 231 of 2001 introduced including: corporate crimes (false declarations in a form of corporate liability. In 2014, the Group’s corporate publications, false declarations in cor- Italian companies adopted an Organisational and porate publications of listed companies), environ- Management Model in compliance with this decree, mental crimes (environmental pollution, environ- simultaneously appointing the members of the Su- mental disaster, traffi cking and/or abandonment of pervisory Board (SB)¹. highly radioactive materials, impeding monitoring, The Model consists of a general and special part. In non-reclamation, illegal burning of waste), money particular, the special part details the organisational laundering and similar (self-laundering). protections adopted to manage individual areas The Model applies to all those who work to achieve of risk (crimes against the public administration, the Company’s purpose and objectives. corporate crimes, crimes breaching regulations to It follows that it applies not only to members of cor- protect workplace health and safety, environmental porate bodies (whether shareholders or directors), crimes, organised crime and transnational crimes, money-laundering), highlighting for each of these: auditors and individuals who are members of the SB, employees and more generally all workers for- • Crimes which could be committed in the abstract; mally included within the company, but also to ex- • Types of activities subject to the risk of crimes; ternal consultants, partners, commercial operators • Corporate departments which carry out activities and contractors with the company (e.g. agents and subject to the risk of crimes; maritime agents, suppliers and service providers), • Audit standards relevant to individual areas of within the limits of the duties carried out in the name risk; or on behalf of the company. • Conduct standards to be respected in order to reduce or eliminate, if possible, the risk that crimes The SB is responsible for ensuring a proper appli- will be committed; cation of the Model. Members of the SB hold their • Information fl ows to the SB. position for three years and are responsible for the The purpose of the Model is to create a structured following tasks: and organic system of procedures, rules and audits, • Overseeing the effi cacy of the Model, as well as to be carried out both before preventively and after compliance with the provisions contained therein; the fact, in order to considerably reduce and pre- • Periodically verifying the eff ectiveness and ade- vent the risk that the various types of crimes iden- quacy of the Model; tifi ed under the law will be committed, as identifi ed • Assessing and suggesting methods to update the during the risk assessment process. Model; Specifi cally, updating of the Model implied the intro- • Ensuring necessary information is communicated. duction of new crimes involving corporate liability, All notifi cations involving violations of the Model are

1) The Supervisory Board has four members (three external and one internal to the Grimaldi Group).

16 2017 Sustainability Report Ch.5 - Governance system and business ethics

analysed and investigated in compliance with the behind company ethics, providing a structure of be- regulations on the protection of personal informa- havioural norms to follow in managing the daily action. tivities of all Group companies, useful for properly During 2017, the SB received no notifications. and efficiently achieving company objectives in the An integral part of the 231 Model is the Group’s maritime transport sector, which involves ever-in- Code of Conduct, which was adopted with the be- creasing competition and complexity, worldwide. lief that ethical business actions favour success for The Code must be followed by the Group’s top level all companies, contributing to spreading a culture of figures, all personnel (administrative and maritime), reliability, correctness and transparency in the activ- and all stakeholders with which the Group has re- ities performed to achieve company goals. lationships (external contractors, buyers, partners, The Code of Conduct defines the general standards suppliers, agents, customers, etc.).

5.2 Compliance

The Grimaldi Group works in compliance with reg- their work, as established in the Code of Conduct. ulations, both the national laws applied in all the Some of the Group’s companies are involved in geographical areas in which it operates, and the various legal cases involving civil/administrative international regulations established by the Interna- disputes. A review of pending disputes as of 31 De- tional Maritime Organization (IMO)². cember 2017, also in the light of the insurance in The Group’s activities are carried out in a socially place, does not reveal any significant contingent li- responsible, impartial and ethical manner, adopting abilities, to the extent that would require provisions policies to ensure equity and properness in the in addition to the amount already recognised in the management of business relationships, guaran- consolidated balance sheet. teeing worker safety, and promoting and encouraging ecological awareness, while fully complying In 2017 there were no significant disputes of an with the laws that apply in the countries in which the environmental and social nature. As regards the Grimaldi Group has a presence. proceeding of the AGCM (Autorità Garante della All business relationships are built on integrity and Concorrenza e del Mercato - the Italian Antitrust loyalty, working to avoid conflicts of interest. To Authority), initiated by a competitor in 2014 for al- achieve this objective, the Grimaldi Group requires leged misleading advertising, the Group presented all of its directors, managers and other employers an appeal (as of today still pending) to the Regional to comply with the ethical standards for business in Administrative Court of Lazio.

2) The IMO is the United Nations agency which defines global standards to regulate environmental, health and safety performance within the international maritime sector.

2017 Sustainability Report 17 6 Our sustainability strategy

ur sustainability strategy has the objective of sues with business. creating value for our customers and passen- O Our way of doing business is focused on creating gers, for the communities in which we operate, for value for the Group and its main stakeholders. We our staff and the companies of the Group, while are aware that operating eff ectively and effi ciently simultaneously minimising our environmental foot- depends on building stable and positive relation- print. ships and carefully managing the impacts caused Operating in a sustainable manner is a strategic to the external environment. Proactively managing priority for us, and to that end we have taken a these aspects makes it possible to contribute to the path that increasingly integrates sustainability is- Group’s growth in the relevant geographic areas and activate opportunities to create shared value. E SHARED TO CREATE SHARED VALUE, IT IS NECESSARY TO: EAT VAL CR UE • Develop and execute innovative projects that contribute to improving the maritime transport sector, increasing the ca- Provide quality services that contribute pacity to meet market requirements to the creation of shared value (door-to-door); • Continue constant communication with all stakeholders, to create better conditions for € their involvement; • Pay the utmost attention to ECONOMIC ENVIRONMENTAL SOCIAL PERFORMANCE PERFORMANCE PERFORMANCE the people who work for us, for customers for our planet for our employees and investing in safety (both at and lenders the communities in sea and on land) and their which we work professional development; in order to • Protect the environment, by implementing projects that Meet the growing Reduce the Contribute to help to reduce our environ- need for sustainable environmental impact our employees’ mental impact; and intermodal of our activities, professional growth transport options helping to protect the and development of • Provide quality services benefi t- planet the communities in which we work ting our customers. The Group, with the aim of increasing its commitment to doing business sustainably, is committed to contributing to the

18 2017 Sustainability Report Ch.6 - Our sustainability strategy

achievement of 9 of the 17 Sustainable Develop- provement in the lives of all humanity. Measure- ment Goals (SDGs), defi ned in the context of the ment of KPIs for sustainability can help the Group United Nations Agenda 2030 for Sustainable De- to measure the contribution it makes to achieve the velopment and which aim to make a decisive im- UN goals as identifi ed.

SDGs to which the Grimaldi Description of objective Group adheres

End poverty in all its forms everywhere

Quality education

Ensure access to and sustainable management of water and sanitation for all

Ensure access to aff ordable, reliable, sustainable and modern energy for all

Build resilient infrastructure, promote sustainable industrialization and foster innovation

Make cities inclusive, safe, resilient and sustainable

Ensure sustainable consumption and production patterns

Take urgent action to combat climate change and its impacts

Conserve and sustainably use the oceans, seas and marine resources

2017 Sustainability Report 19 Ch.6 - Our sustainability strategy

6.1 Our stakeholders and channels for dialogue

• Proximity: subjects with which the Group has es- In carrying out its business, the Group interacts with tablished lasting relationships and those which various categories of stakeholders who play a pri- work regularly with the Group based on their ac- mary or secondary role based on their ability to infl u- tivities and operations; ence the business and, in turn, be infl uenced. • Representation: subjects which, for legal and/or In particular, mapping of stakeholders was done in cultural or traditional reasons, represent other in- consideration of the various parameters that refl ect dividuals who infl uence or could potentially infl u- the signifi cance and importance that these subjects ence the Group's decision making processes; have for the Group. Specifi cally: • Strategy: subjects which, due to strategic deci- • Responsibility: subjects in relation to which the sions made by the Group, are considered key Group has responsibilities (legal, fi nancial, oper- stakeholders. ating, etc.); In the light of these aspects, the Grimaldi Group • Infl uence: subjects which infl uence or could po- has identifi ed the following categories of key stake- tentially infl uence the Group’s decision making holders, shown in the image below. processes;

Personnel

Environment Owners

Trade Commercial associations customers

Communities Passengers

Suppliers and Institutions Agents

Also during 2017, the Group was committed to com- of the on-board magazine Grimaldi Magazine Mare municating with its stakeholders in a number of Nostrum, which contains travel information and ar- ways, through various channels used either regu- ticles about the main connected tourist areas and larly or in a targeted manner. the publications Finnlines News and Minoan Wave, which can both be downloaded from the corporate Among the main tools used regularly are the issuing website and which provide not only in-depth infor- of press releases containing news and promotions, mation on the two subsidiaries but also cultural and the publication of the quarterly magazine Grimaldi tourist tips. All press releases, as well as the maga- News, which provides news about the Group, as zines and the most important articles published in well as itineraries for all the regular services off ered the Italian and foreign press, can be consulted and and contact information for Grimaldi agencies and downloaded from the Group’s institutional website offi ces, and the multilingual half-yearly publication (www.grimaldi.napoli.it).

20 2017 Sustainability Report Ch.6 - Our sustainability strategy

The Grande New York and the Grande Baltimora These are the last two ships of an order for three identical vessels with high environmental efficiency

6.2 Grimaldi’s highlights

Opportunities for dialogue include ad-hoc events Based in London, the ICS is the main international aimed at spreading awareness about the Group’s association of the shipping industry to which various activities. Below we note the most significant activi- shipping companies and associations of more than 37 ties conducted in 2017. countries are affiliated, and represents the shipping sector with more than 80% of the global fleet. On 18 April the Grimaldi Group announced an important expansion of its long-range maritime connections On 17 July the first conference of ALIS (Associazione with the new direct service to Mexico for transporting Logistica dell’Intermodalità Sostenibile - Logistic Asso- rolling stock, project cargoes and automobiles. ciation of Sustainable Intermodality) was held, at the Maritime Station in Naples. The Association, founded This is an extension of the regular service that con- in 2016, is made up of the largest Italian road transport nects the Mediterranean to North America, operated companies and has the aim of promoting eco-sustain- by the Group very successfully since 2015. The new able development of intermodal transport. extended service serves the ports of Civitavecchia, Savona and Gemlik in Turkey with the North American The subject of the event was “Growth of Southern Italy ports of Halifax (Canada), New York, Baltimore, Jack- through Sustainable Intermodal Logistics”. The con- sonville and Houston, as well as the Mexican port of ference was divided into three sessions. The first was Veracruz and has a weekly frequency for the North devoted to “the evolution of Transport and Logistics American cities and fortnightly for Mexico. through the sustainable model”. Instead the second session was “the recovery of Southern Italy”. The The Grimaldi Group’s connection is the first direct and event came to an end in the afternoon with the third regular service between the Mediterranean and North session “the ALIS lounge” in which issues linked to the America for the transport of rolling stock. Thanks to new way of creating a system in the port context were the use of modern ro/ro-multipurpose ships which discussed. have a total load capacity of 3,000 linear metres of At the end of September the Group announced its in- rolling stock and 3,000 cars, the regular line guaran- tention to build hybrid ro/ro ships with a load capacity tees a transit time of only 12 days between Italy and twice that of the largest vessels currently operated by North America and 20 for the Atlantic coast of Mexico. the Group, and three times that of the previous gener- On 10 May, during the Annual General Meeting of ation of ro/ro ships. At the same speed the new ships the Association held in Istanbul, Emanuele Grimaldi will consume the same fuel bringing an increase in ef- (Chairman of Confitarma from 2013 to October 2017 ficiency of 100% if measured in terms of consumption and Chief Executive Officer of the Group) was elected per tonne of goods transported. This order will enable deputy chairman of the International Chamber of Ship- the Grimaldi Group to maintain its status as a pioneer ping (ICS). in environmental protection. The order at the Chinese

2017 Sustainability Report 21 Ch.6 - Our sustainability strategy

Mare Nostrum Awards This is the international journalism award organised by the Grimaldi on-board magazine Mare Nostrum, dedicated to promoting travel by sea in the Mediterranean and, in particular, the awareness of the Motorways of the Sea. The competition is open to professional journalists, authors in general and photographers who have published a work on the Motorways of the Sea, highlighting the advantages of these connections in economic, social and environmental terms. The 2017 edition of the Mare Nostrum Awards gave out equal prizes to the top fi ve winners for a total of €50,000. The special prize “Cavaliere del Lavoro Guido Grimaldi”, established by the Grimaldi family, was awarded to the journalist Giorgio Mulè.

shipyard was made in two steps: in April 2018 a fi rst In the meantime, on the same day, the Grande Bal- agreement was signed for the construction of six ves- timora, delivered in July 2017, sister vessel to the sels; a second agreement was then signed in May for Grande New York, made its maiden voyage to the US another six vessels. The total investment will be ap- port of Baltimore where it was greeted by a large dele- proximately US$ 800 million. gation made up of civil and maritime authorities. From 28 September to 1 October, over 600 dele- The Grande Halifax, the last vessel of the order for gates coming from all parts of Europe, North Africa, the three identical Pure Car & Truck Carrier ships from the Middle East and North America participated in the XXI Jinling shipyard, was delivered to Grimaldi Euromed Euromed Convention “From Land to Sea”, organised in on 10 January 2018. Santa Teresa di Gallura (Sardinia) by the Grimaldi Group. The focus of discussions was a very topical subject: From the environmental point of view, these three the development of ever-increasingly eco-sustainable ships are highly effi cient. They are in fact fi tted with methods of transport by sea, through a process that electronically-controlled Man Diesel & Turbo en- involves gradual decarbonisation and consequent dig- gines, as required by the new standards for the re- italisation of ships, signifi cant economic investments duction of nitrogen oxide (NOx) emissions and with made possible by the concentration of operators and a scrubber for cutting sulphur oxide (SOx) emissions. exponential development of intermodal transport. This Finally, they comply with the most recent standards event is organised every year by the Grimaldi Group in in terms of treatment of ballast water. a diff erent Mediterranean location to promote short- range maritime transport and participants include the In October, the Grimaldi Group began also to take main leaders in transport policy and the most impor- an active part in the protection and enhancement tant representatives in logistics, port services and the of the artistic heritage of the city of Naples by an- maritime sector in the Euro-Mediterranean area, as nouncing that about € 440,000 would be allocated well as the network of Group branches and agents. by the Neapolitan group to fi nance the restoration On 31 October a ceremony to mark the delivery of the work on the Basilica dell'Incoronata Madre del Buon Pure Car & Truck Carrier ship Grande New York to the Consiglio e Regina della Cattolica Chiesa (Basilica of Grimaldi Group was held at the Chinese Jinling ship- the Crowned Mother of Good Counsel and Queen yard in Nanjing. Second of an order of three identical of the Catholic Church) in Naples. The restoration vessels, the Grande New York has a length of 199.90 work, which will start at the beginning of 2018 and metres, a width of 32.26 metres, a gross tonnage of will last for about two years, will involve the North 63,000 tonnes and a cruising speed of 19 knots. façade of the church.

22 2017 Sustainability Report Ch.6 - Our sustainability strategy

Ceremony to mark the delivery of the Grande Halifax

6.3 Materiality analysis

To update the list of material issues to be accounted tential impact, whether economic, social and/or envi- for within this document, the Group reviewed the ronmental on the organisation, or when it is able to analysis carried out for the fi rst time in 2015. signifi cantly aff ect the assessment of the organisa- In particular, the results of the analysis process done tion by stakeholders. by the subsidiary Finnlines were also taken into con- The materiality matrix combines the priorities as- sideration; this saw the company’s management in- signed by external stakeholders with internal pri- volved in identifying issues material to the group. orities, to identify issues that are priorities for the Materiality analysis is a process that consists of iden- Grimaldi Group and its stakeholders. tifying, categorising and prioritising a series of issues Material issues, which are explored further in this that are relevant to the company from an economic, document, are those located in the upper right quad- social and environmental point of view, in order to rant, meaning they are of high relevance both for the identify issues classifi ed as “material” and position company and for stakeholders (for more information, them within a materiality matrix. please see the section “Materiality analysis process” An issue is considered material if it has a real or po- in the Appendix). Importance for Stakeholders

Importance for the Grimaldi Group 2017 Sustainability Report 23 Ch.6 - Our sustainability strategy

Economic Issues Possible Impacts for the Grimaldi Stakeholders involved Group Economic Performance Business Continuity Grimaldi Group Investment Plan Staff Customers Business Ethics Group Reputation Grimaldi Group Transparency in Operations Customers Crime Prevention Suppliers Institutions Community Innovation and Sustainable Energy efficiency Environment Development Cost Reduction (e.g. fuel) Community Competitiveness Customers Rapid Adjustment to Regulations Suppliers Supply chain Business Continuity Suppliers Quality of Operations Group Reputation Risk & Compliance Monitoring of Corporate Risks Grimaldi Group Prevention of Legal Disputes Customers Suppliers Continuity of Service and Emergency Monitoring of Economic Risks Grimaldi Group Management Associated with Service Interruptions Economic and Criminal Sanctions Customer focus Competitiveness Grimaldi Group Brand Protection Customers Social Issues Possible Impacts for the Grimaldi Stakeholders involved Group Employee health and safety Worker Productivity Staff Business Continuity Grimaldi Group Improvement of Working Conditions Ship Detection Prevention Valorisation of Human Resources Staff Retention Staff Attracting Talent Grimaldi Group Worker Productivity Investment in the community Improving the Socio-Economic Community Situation Company Reputation Diversity and inclusion Improvement of Corporate Climate Staff Staff Retention Grimaldi Group Attracting Talent Company Reputation Environmental Issues Possible Impacts for the Grimaldi Stakeholders involved Group Energy efficiency Cost Reduction (e.g. fuel) Environment Competitiveness Customers Reduction of Environmental Impacts Community Company Reputation Emissions Reduction of Environmental Impacts Environment Regulatory Compliance (e.g. sulphur) Institutions Ecosystems and biodiversity Protection and Preservation of the Environment Land Spills Interruption of Service Grimaldi Group Environmental Protection Customers Economic and Criminal Sanctions Water Protection of the Environment and Environment Ecosystem Environmental management system Proper Supervision and Monitoring of Grimaldi Group Environmental Issues Prevention of Environmental Risks Waste management Environmental Protection Environment Decommissioning of Ships Environmental Protection Community (scrapping) Local Worker Health and Safety Environment Grimaldi Group

24 2017 Sustainability Report Ch.6 - Our sustainability strategy

6.4 Economic performance: creating shared value

In this section, in compliance with what is required created to the advantage of all stakeholders. by the GRI-Global Reporting Initiative guidelines, we Distributed economic value is a qualitative/quanti- provide an added value schedule, based on reclas- tative index of the Group’s social impact and of the sification of the income statement in the Group’s real extent of the social responsibilities taken on. Consolidated Financial Statements. Economic value generated represents measurable The economic value kept within the Group repre- economic wealth, produced during the year by the sents part of the wealth that guarantees the eco- Grimaldi Group and added value analysis makes it nomic sustainability of the business, reinvested in possible to obtain an objective measurement of the innovation and services for customers to continue economic/social impact created, measuring wealth the process of continuous improvement.

GENERATION AND DISTRIBUTION OF ECONOMIC VALUE Figures in thousands of Euro Delta Delta% 2017 2016 2015 '17-'16 '17-'16 DIRECTLY GENERATED ECONOMIC VALUE 2,941,568 2,694,124 2,829,470 247,444 9% Revenue from sales 2,762,049 2,571,755 2,665,793 190,294 7% Other income (other income, financial income, portion 179,519 122,369 163,677 57,150 47% of profits) DISTRIBUTED ECONOMIC VALUE 2,383,771 2,162,346 2,188,775 221,425 10% Suppliers 1,921,780 1,708,309 1,738,014 213,471 12% Employees 385,116 374,933 362,063 10,183 3% Lenders 52,081 58,479 66,065 -6,398 -11% Public Administration 22,187 17,590 20,417 4,597 26%

Community 2,607 3,035 2,216 -428 -14%

ECONOMIC VALUE WITHHELD 557,797 531,778 640,695 26,019 5% Depreciation 259,415 245,847 235,485 13,568 6% Total Profits 298,382 285,931 405,210 12,451 4%

2017 Sustainability Report 25 Ch.6 - Our sustainability strategy

The Grimaldi Group generated value of around € 2.9 billion

In 2017, the Grimaldi Group generated value of resents the portion of economic value generated around €2.9 billion, an increase of more than €200 that the Group distributed to public administra- million compared to 2016 (+9%). tions, both central and local, through taxes and contributions levied (direct and indirect taxes, du- Distributed economic value (just over 80% of the ties paid and contributions). economic value generated) mainly consists of the • Community (€ 2.6 million): this item represents following items: the portion of economic value generated that the • Suppliers (€ 1.9 billion): this item represents the Group distributed to local communities to support portion of economic value generated that the the organisation of social, environmental and cul- Group invested in the economic system, through tural initiatives through the Grimaldi Foundation the purchase of raw materials, goods and services. Onlus. The main expense items are associated with the The value that the Group did not distribute to its Group's core business and are for the purchase of stakeholders, but kept internally in the form of am- fuels and lubricants, general navigation expenses ortisation/depreciation and allocation to reserves, and expenses for berth and port services; to be reinvested to guarantee business continuity • Employees (€385 million): this item represents and sustainability, consists of the following items: the portion of economic value generated that • Amortisation and depreciation (around € 260 the Group provided to its employees, in the form million): this represents the portion of economic of salaries or other benefits (e.g. meal tickets, value kept within the Group for amortisation and training expenses, living and travel expenses, depreciation of tangible and intangible fixed as- etc.); sets; • Lenders (€ 52 million): this item represents the • Consolidated profit (around € 298 million): this portion of economic value generated that the represents the profit which, based on manage- Group provided to its lenders as interest on loans ment decisions, is mainly reinvested in the Group received; to finance the purchase of new ships, technolog- • Public Administration (€ 22 million): this item rep- ical innovation, etc.

26 2017 Sustainability Report We create value 7 for our stakeholders

7.1 Our customers

ervice quality represents a key element for the and data protection, the Group, during 2017, pre- SGroup’s business strategy, in order to build re- pared for entry into force of Regulation EU 2016/679 lationships of solid and lasting trust with customers. (General Data Protection Regulation – GDPR) by Through the Company Rules for Passenger & Ve- preparing a computerised register of processing, hicle Transportation and the General Transport Con- assessing the risks connected with breaching peo- ditions, the Group has defined its rules and minimum ple’s freedom and rights, and establishing the figure standards, to guarantee the quality of the services it of the Data Protection Officer. offers to passngers with particular attention to the The Group is dedicated to excellence, social respon- disabled, children and pregnant women. sibility and transport solutions that promote sus- Through these rules in addition the Group intends tainable mobility. In addition, in order to ensure an to transfer to employees and customers the values optimal experience on board its ships the Grimaldi pursued. The mission is to provide efficient, reliable, Group’s activities are carried out in a socially respon- innovative and high quality services for maritime sible, impartial and ethical manner, adopting policies transport of freight and passengers, by constantly to ensure equity and correctness in the manage- working to identify the needs and expectations of ment of business relationships, guaranteeing worker our customers. safety, and promoting and encouraging ecological In 2017, in order to pursue and implement the atten- awareness, while fully complying with the laws that tion that the Grimaldi Group pays to its customers, apply in the countries in which the Grimaldi Group the registration of passengers through a booking has a presence. system, computerised or of a manual kind, was in- All business relationships are structured around introduced for all lines, depending on the installations tegrity and loyalty and are carried out without any present on board the ships and in the ticket offices. conflicts of interest. To achieve this objective, the In this way constant and timely adjustment of the Grimaldi Group requires all of its directors, managers Group General Transport Conditions for passengers, and other employers to comply with the highest eth- services and organisation is guaranteed as per the ical standards for business in their work, as estab- current national and international legislation on the lished in the Code of Conduct and in accordance subject of passenger transport by sea. with the policies and Guidelines to which it refers. All All the data are used and processed for statistical employees are constantly invited to be professional, and commercial purposes and in order to analyse to respect their colleagues and the customers, to the productivity of the department and to define the commit themselves to achieving the goals set by the commercial strategies to be adopted to ensure an Group, increasing the efficiency of the direct and in- ever-better travel experience for users. In addition, direct production processes and paying attention to with a view to managing the aspects linked to privacy costs to avoid all kinds of waste.

2017 Sustainability Report 27 Ch.7 - We create value for our stakeholders

7.1.1 Passenger transportation In order to improve its service, the Group monitors During 2017 approximately 3.1 million passengers further the level of customer satisfaction through travelled on the Group’s ships, in line with the figure a monthly comparison of the trend of judgements recorded in 2016, confirming the success of the expressed in percentage between the current year constant attention that the Group pays to service and the previous one. quality, in order to manage to guarantee excellent Among the recognitions obtained by the Group for travelling experiences, satisfying and intercepting the services offered we can note the performance of customers’ needs in a timely manner. Minoan Lines in passenger transport: in March 2017, Monitoring of service satisfaction levels involves the awards ceremony of the “Corporate Superbrands customer satisfaction analysis of feedback sent by Greece 2016” was held at the Megaron Athens Con- customers through a dedicated e-mail address³. cert Hall; in that occasion Minoan Lines received the This method has ensured immediate and careful award as Best Corporate Brand 2016 in the pas- management of complaints which, once they have senger transport sector in Greece. been processed, are entered in a Register and are Minoan Lines also received other recognitions during sent to the competent department which takes the “Tourism Awards 2017”, namely: them in hand. During 2017, an average of around • a Gold Award, “for support to the local commu- 0.21 complaints were received per 1,000 passen- nity and social responsibility actions”; gers, mainly related to delays in or cancellations of • a Gold Award, “for online presence and communi- ship departures and some on-board services. cation”; Management of complaints within 30 days of re- • two Silver Awards, respectively for “the promotion ceiving them is completed through a process of of Greek cooking” and for “customer services”. study and analysis of comments that makes it possible to overcome the weak points and transform 7.1.2 Freight transport them into strong points. The Grimaldi Group is a world leader in transporting Another parallel activity is management of sugges- new cars to their destination markets. Over the last tion forms, structured in order to understand the de- 20 years, the Group has repeatedly been recog- gree of user satisfaction with reference to all spaces nised by customers and specialised publications for and services on board. the services it offers. The most significant feedback given by customers Among the other international recognitions the is analysed and shared with the other internal of- group, through Atlantic Container Line, was given fices involved in order to be able to intervene to the Service Excellence Award 2017 by Diageo, the solve the problems raised. largest global producer of spirits and beer.

PERCENTAGE 13% DISTRIBUTION OF JUDGEMENTS 2017 32%

29% Insufficient Sufficient Good Excellent 26%

3) [email protected] 4) At present, only available on the ship MS CRUISE ROMA

28 2017 Sustainability Report Ch.7 - We create value for our stakeholders

On 29 September 2017 the fi rst edition of the “Grimaldi Excellence Awards” was held. The ceremony took place during the gala dinner of the XXI Euromed Convention in Santa Teresa di Gallura. During the event, the Group gave awards to its best suppliers and partners. The winning suppliers and partners were: ENI, Rolls Royce, Ligabue, Central Tyrrhenian Sea Port System Authority, Port of Antwerp, the Group’s subsidiaries that operate in the port of Salerno. In addition, awards were given also to the best customers selected on the basis of the volume or the load transported by the Group in the last year. Among road transport companies we can mention by way of example Lkw Walter, Smet, Transitalia, Kortimed Lct, Nico SpA, etc. In the automotive sector awards were given to Ford, Renault, Gefco, VW and Caterpillar, as well as to Fiat-Chrysler Automobiles which won the title of Champion of the category.

THE GROUP’S MAIN AWARDS IN 2017

ENTREPRENEUR OF THE YEAR AND BEST CHIEF EXECUTIVE OFFICER Emanuele Grimaldi (Chief Executive Oﬃ cer of the Parent Company) was awarded a prize, during 2017, by the readers of the magazine“European CEO” for Logistics in Europe.

FORD MOTOR CO Q1 AWARD SMAU 2017 INNOVATION for oﬀ ering transport services with a near-0 accident the Group won the award for the innovative aspects rate, a recognition received every year, and for the implemented in its new disaster recovery system in 18th time, since 1999. the IT fi eld.

LEADERSHIP EXCELLENCE AWARD LOGISTIC OF THE YEAR In the prestigious setting of the Harvard Club in New Costantino Baldissara York the Grimaldi Group was given an award by the (Commercial, Logistics and Operations Director) Italian magazine Panorama. The Neapolitan Group was given this award for his special commitment in was named by the magazine as an example of Italian supervision, through a global platform, of the services distinction in the world and incarnation oﬀ ered by the Grimaldi Group. The ceremony was of excellence at sea. held on 10 November at the Claridge Hotel in London, during the fi fth edition of the Automotive Global Awards, organised by the Three 6Zero Publishing Group.

2017 Sustainability Report 29 Ch.7 - We create value for our stakeholders

7.2 Our people

Total Group personnel Personnel by gender Personnel by Nationality

Maritime personnel Men EU Shore personnel Women Extra EU / Rest of the World 38% 11% 23%

62% 89% 77%

The Grimaldi Group has always worked in the con- represent the main trade unions in the industry, viction that the capacities and qualities of its em- FILT-CGIL FIT-CISL and UIL-Trasporti, and who, on ployees are the foundation of our success, whether an over 20-year relationship, have been based on they work at sea or on land. the prompt solution of requests, of problems that may emerge and of improvement actions proposed For this reason, all activities that protect and en- by employees. In addition, the Human Resources hance personnel are of central and strategic impor- Manager is an integral part of the Education Com- tance for the Group, with the aim of creating lasting mission and the Work Commission of Confitarma relationships of reciprocal trust, attracting new (the Italian Shipowners’ Association). talent and guaranteeing a healthy and safe working environment. In addition, for 2017, the Group continued to apply the 2nd Level Agreement, which made improvements The Group can boast solid relationships with the to the provisions of the CCNL (National Collective main union organisations in its sector, based on Labour Agreement). This agreement also provided continuous dialogue (at least quarterly) and coop- for adherence to the National Additional Assistance eration, to share any issues and proposals for im- Fund UNISALUTE, which offers healthcare and in- provement coming from employees. In Italy, the jury treatment. In addition to remuneration improve- Group has in its workforce three employees who ments, the Agreement also includes new benefits

30 2017 Sustainability Report Ch.7 - We create value for our stakeholders

Skills and Quality of its employees are the basis of Grimaldi Group success

in favour of workers in terms of: improvements in employees with the aim of improving continuously daily allowances for every mission day and greater their professional development. flexibility in holiday hours and methods of use, as well as institutionalisation of seniority bonuses 7.2.1 Personnel selection policies upon reaching 20, 25, 30 and 35 years of service. The Human Resources Department manages re- These benefits, deriving from the nd2 Level Agree- quests for new staff coming from the various com- ment, are added to those already existing, such as pany departments, both in the case of replacing per- the arrangement of a private policy paid for entirely sonnel (e.g. maternity) and in the case of increasing by the company (in addition to INAIL insurance) for staff, taking particular care in selecting and making administrative personnel on missions. the best use of protected categories. As far as disputes are concerned, during 2017 no Once requests have been surveyed, if the need is significant cases arose. confirmed, they are presented to the Board for fur- Among the Group’s foreign subsidiaries, Finnlines ther assessment and final approval. considers the basis of its success its attention to Alongside the approval procedure, the Human Re- human capital, in particular to long-term cooperation between land and sea personnel. The com- sources Department supports the department that pany promotes well-being in the workplace and has requested the resource in setting out the nec- work skills as essential long-term factors of suc- essary skills and defining the professional profile cess. Improvement of performance was imple- required. mented mainly through increasing the cohesion of Once the approval procedure has been completed, the team, concentrating attention on improving the the profile is cross-checked with the internal data- leadership capacity and ensuring fair recruitment base populated by spontaneous applications on capable of adding value to the company. the Grimaldi institutional website. If an insufficient Minoan Lines believes that the personality of each number of applicants is available to begin a selec- employee contributes significantly to the compa- tion, the related requests are published in the “Work ny’s success and intends to recruit people with ad- with us” section on the Group’s institutional website equate skills who also have the aim of maintaining and in trade publications. high standards of services. During 2017 a new application management plat- The company cooperates with the most important form was implemented, with the aim of better pro- educational institutions and offers employment op- filing of applicants using a specific online form to be portunities through its own job centres. Promoting filled in. In addition, a written screening test based equality and equal opportunities in the sector in on the subjects involved in the search was institu- which it operates is the company’s main objective tionalised. and is supported at all levels of the administrative After identifying a short-list of ideal applicants, an structure. internal Commission, defined based on the skills to In addition, the company invests in the training of its be assessed, then works to select the applicants

2017 Sustainability Report 31 Ch.7 - We create value for our stakeholders

most suitable for the position to be held. The pro- trainer’s work, the Human Resources Department cedure is completed with a decision taken by the provides participants with an anonymous question- majority of the Commission, although the Manager naire to obtain qualitative and quantitative feedback of the office, which requested the resource, can al- on each session. ways ask to carry out further in-depth interviews. In addition the Group, in order to keep its em- The type of contract adopted for beginning new ployees always up to date with new technologies, employment positions, above all for junior profiles, has installed in its Naples Headquarters a Naviga- is the professionalising apprenticeship which, at the tion, Manoeuvre and Maritime Telecommunications moment, offers the best contractual profile in terms Simulator. of costs and possibility of creating training/specific This is a Transas 5000 model which complies with insertion pathways. Internships represent a useful the IMO standards (rule I/12 and section A-I/12 STCW tool for both the Group, which is able to assess the code) and is capable of simulating the manoeuvres technical abilities and attitude of candidates, and for different types of sea and in different weather for those receiving the training, who are able to see conditions. the work close up and determine their inclination towards the task. The Transas 5000 Simulation System is capable of When selecting maritime personnel to work on offering training for all levels (basic, intermediate, ships, the process of identifying, assessing and se- advanced training): thanks precisely to this charac- lecting staff is the direct responsibility of the Crew teristic it is possible to cover a vast range of trainees Department. In this case, the selection procedure at different levels, nautical students, and also expert for these workers considers the possession of seafarers, river pilots, port pilots, tugboat operators, STCW⁵ certification as a bare minimum, as well as etc. meeting all the requirements of the flag the ship Currently the simulator is used only for training sails under. Abroad, initial selection is done by per- Chief Mates and on numerous occasions for training sonnel agencies, with final approval given by the courses organised for students of the Nautical Insti- Crew Department. tutes with which the Group collaborates. In addition, again in order to guarantee maximum 7.2.2 Training and safety in the workplace, thanks to the simulator, skill development accidents that have occurred in the past with the Training requirements are determined every year Group’s ships are analysed. The same conditions as part of the merit-based evaluation of the work- present at the moment of the accident are recre- force, in order to identify and correct any shortcom- ated and an analysis of the event is carried out. Fi- ings in staff training. In particular, every evaluator nally, possible corrective actions that could be car- can express for each employee any training needs, ried out if the situation reoccurs are identified. whether technical or related to soft skills. During 2017, managerial, technical and linguistics 7.2.3 Performance evaluation training courses were provided, as well as obliga- The entire workforce undergoes an annual perfor- tory courses on safety and on the Organisational mance evaluation. This activity is not viewed as a and Management Model, plus that on the new Eu- mere regulatory requirement, but as a way to re- ropean regulation concerning Data Protection, the ward employees who have been most interested GDPR, for 50 Executives with a view to entry into and involved in the processes of improving and de- force of the said Regulation (EU) 2016/679 (GDPR). veloping the Group. Finally training activities on board ships were implemented for more than 400 trainees. The managers responsible for each department are asked by Human Resources to complete assess- In total 868 resources were trained and approxi- ment forms on the performance of each employee mately 528 hours of training were provided. and to organise, at least once a year, an interview At the end of the courses, in order to assess the to determine the extent to which the objectives set

5) International convention on training, certification and watchkeeping standards for seafarers, also known as the STCW 1978 Convention, or simply STCW (Standards of Training, Certification and Watchkeeping for Seafarers).

32 2017 Sustainability Report Ch.7 - We create value for our stakeholders

Training and professional development and recognition of merit form the basis of the Group’s growth

Needs Project Performance Training analysis design Assessment

the previous year have been met, indicate any prob- adopted to guarantee safe conditions in the work- lems, and identify new objectives for the future. place. The assessment parameters were examined in In addition, in order to ensure safety in the work- depth in specifi c meetings with the Managers to place, in the area of fi rst aid it was decided to equip ensure that the assessment is made in a balanced each fl oor of the Group’s offi ces with a defi brillator, manner; this made it possible to reward the most for the use of which the members of the fi rst aid worthy Resources, who had stood out particularly teams were trained. during 2017, according to the parameters and guide- Worker training activities are reviewed periodically, lines established by the Management. pursuant to Italian Legislative Decree 81/08 and al- During 2017, 25% of the administrative personnel of ways in the following cases: the Group’s main Italian companies were involved in merit-based incentives. • at the time of hiring; • any time changes occur in the company's activi- In fact, the Group is strongly convinced that re- ties, judged signifi cant in terms of their impact on warding staff for talent makes it possible to worker health and safety conditions; strengthen loyalty to the Group, helping them to • when signifi cant changes are made to relevant feel like an integral part of a solid, well-organised regulations that require revised risk assessments system which places its resources at the centre of with regard to worker health and safety; its business strategy. • when tasks change. 7.2.4 Workplace health and safety Pursuant to article 28, paragraph 1, letter F), tasks have been identifi ed that expose workers to spe- The Group operates in full compliance with cur- cifi c risks which require recognised professional rent workplace health and safety regulations. In abilities, specifi c experience, adequate training particular, for the specifi c activities they do and the and/or education. In order to encourage a process special aspects of their working environment, all of increasing the responsibility of the Management workers receive specifi c training on the basis of the and bringing it closer to the Business operations, tasks they have to perform and adequate informa- a system of delegated powers on the subject of tion on correct work practices and risk prevention. safety was put in place. Specifi cally, in continuity with previous years, the In the company, there are tasks which expose cer- Group provides training on the provisions of the tain professional roles to specifi c risks which require Italian Legislative Decree 81/08 (Consolidated recognised professional skills, specifi c experience Workplace Safety Act) on the specifi c activities car- and appropriate training, specifi cally: ried out by the Group, on health and safety risks for workers associated with individual tasks and on • Technical Inspectors; prevention and protection measures and activities • Inspectors for on-board Safety Procedures; implemented and/or scheduled. • Inspectors to Prevent Load Damage; • Port Captains. During training and information activities, particular attention is also paid to the proper use of Personal For these professional roles, in addition to a specifi c Protective Equipment necessary based on the risk health protocol and suitable training, the Risk As- assessment done for the company's activities, as sessment Document was amended, issuing a spe- well as working methods and procedures to be cifi c ship access procedure that was distributed to all relevant ground personnel and Ship Control.

2017 Sustainability Report 33 Ch.7 - We create value for our stakeholders

7.3 Our suppliers and agents

One of the Grimaldi Group’s objectives is to establish relationships with its business partners that are based on transparency, correctness and impartiality. The Chartering & Bunkering Department handles the Group’s supplies of fuel, paying the maximum atten- Supplier totals by geographic area tion to limiting costs and to searching for any new suppliers on the destination markets of the ships. Re- quests must reach the department 5 working days Other 18% before the bunkering day. The procedure involves sending a procurement re- Spain 2% quest from the ship using a specifi c form containing all the necessary specifi cations. Once the request Germany 6% has been received, it is entered on the “spot market”, Belgium 2% Italy 39% if there is no agreement, or is sent to any supplier United with which the Group has pre-set agreements. Kingdom 5% The spot request is processed through a tender Sweden 6% among all the suppliers present in the port involved Finland 22% in order to obtain the best price on the market. Once the tender has been completed and/or the confi rma- tion received from the supplier a bunker confi rma- tion is sent to the ship. For each request the itinerary of the ship is always Extra EU / Rest of the World assessed in order to check whether the port in which 9% the ship has requested the bunkering is the cheapest of the entire itinerary. The Grimaldi Group’s remaining procurement activities are managed by the Procurement Department for the main Italian companies (Grimaldi Deep Sea, Grimaldi Euromed and Grimaldi Group) and for the subsidiary ACL. The Department also performs a role of coordination and supervision (framework agreements, budget check and control of purchases of EU signifi cant amounts) for the subsidiaries Finnlines 91% and MMOS (Malta Motorways of the Sea Ltd). The procurement process for the Group’s foreign subsidiaries is monitored by the parent company, leaving individual companies contractual autonomy within pre-set limits. CERTIFIED SUPPLIERS In 2017 the Group’s most signifi cant expenses, be- Iso 9001 - Iso 14001 - sides fuel not managed by the Procurement De- OhsAs 18001 partment, consisted of costs for shipyards in which planned periodic maintenance is carried out on all ships, the purchase of parts and services for the repair of main engines and auxiliary generators and expenses for lubricants and paints for hulls, top side

34 2017 Sustainability Report Ch.7 - We create value for our stakeholders

work, bridges and garages. jective methods that consider, in addition to quality, Purchase orders are issued only to companies regu- innovation, cost and services offered, social and en- larly entered in the Grimaldi suppliers register, which vironmental performance and respect for the values together with the agents have their registered of- outlined in the Group’s Code of Conduct. fice/operating base in the geographical areas of ref- When analysing suppliers, the Group examines erence⁶ thus contributing to the growth of the local whether the main health, quality and environmental economies. certifications are held. When suppliers have imple- In order to improve the punctuality of supplies, with mented a quality system which refers to other reg- particular attention to safety and urgency, in 2017 ulations, the Group reserves the right to carry out a new procedure was finalised, this enables the audits to determine whether it is adequate. department to identify immediately the purchases With reference to suppliers analysed⁷ and monitored that must be treated with the greatest priority. The for possession of certification, it was found that ISO results of several months of application of the pro- 9001 (quality system) is the most widespread certifi- cedure showed a notable acceleration of supplies cation (90% of suppliers analysed), followed by ISO regarding the safety and main functions of ships. 14001 (environmental management system), held by In structuring its supply processes and supplier rela- 26% of suppliers analysed. tionships, the Group refers to what is established in Verification that suppliers hold the main certifica- the General Purchasing Conditions, the Integrated tions related to environment and health and safety is Quality Assurance and Environmental Manual and done through an evaluation form within the Quality its Code of Conduct. Management System, as well as verification by the More specifically, the approach adopted in man- Procurement Department that renewals are ob- aging all steps within the supply process is based on tained. observing the following principles: The attention the Group pays to sustainable man- • Compliance with the law and national and EU reg- agement of the supply chain is also demonstrated, ulations; as in the graph above, by the decision to recognise • Respect for competition and non-discrimination and select suppliers that adopt quality, workplace with possible competitors; health and safety and environmental management • Transparency in the selection process; systems that are structured and certified under inter- • Efficiency and efficacy. nationally recognised standards, mainly: ISO 9001, The Integrated Quality Assurance and Environ- ISO 14001 and OHSAS 18001. mental Management Manual defines responsibilities and governs the operating methods within the supply process, from identification of possible suppliers to the final selection stage. Suppliers are selected using appropriate and ob-

SUPPLIER CERTIFICATION TYPE OHSAS 18001 7%

ISO 9001 90%

ISO 14001 26%

OTHER 17%

6) When assigning geographical areas, the location of the suppliers’ registered offices was used. 7) The analysis refers to 105 main suppliers.

2017 Sustainability Report 35 Ch.7 - We create value for our stakeholders

7.4 Institutions and trade associations Also in 2017, the Grimaldi Group played an active role within the main trade associations, both in Italy and abroad, contributing to the defi nition of strategic guidelines for the shipping sector together with other important national and international players. Below we list the main trade associations with which the Group has solid and lasting relations and participates in, in order to promote nautical activities.

CONFITARMA - The Group is a member of Confederazione Italiana Armatori (Confi tarma), the Italian Ship- owners’ Association, with registered offi ces in Rome, which is an association for shipping companies and ship-owning groups that operate in maritime freight and passenger transport, cruises and auxiliary traffi c services. Its participation in this association is very active. Emanuele Grimaldi served as President of Confi t- arma from 2013 to 2017, Guido Grimaldi is president of the Short Sea Shipping (Navigazione Corto Raggio) Committee and member of the Council and of the Executive Committee, and various Group managers are members of several issue-based committees established within the association.

ALIS - The Group was one of the founders of ALIS (Associazione Logistica dell’Intermodalità Sostenibile - Logistic Association of Sustainable Intermodality), founded at the end of 2016 with headquarters in Rome. ALIS consists of the largest Italian road transport companies and has the aim of supporting the eco-sustainable development of intermodal transport. The association promotes the development of monitoring systems with the goal searching for technical solutions that allow reduction of harmful emissions into the atmosphere, in particular CO2. Guido Grimaldi, Corporate Short Sea Commercial Director of the Grimaldi Group, is the President of the Association.

ICS - The Group is a member of the ICS (International Chamber of Shipping), the main international organisation of the maritime industry which drafts and defi nes guidelines regarding technical, environmental and operational considerations which infl uence international transport. Emanuele Grimaldi is Vice Chairman of the organisation, as well as the sole Italian representative.

ECSA - The Group is a member of the ECSA (European Community Shipowners’ Associations), an entity that represents all the European shipowner associations, with managers participating on various committees and working groups. Emanuele Grimaldi is a former President and current member of the Board.

INTERFERRY - Global association of companies working in the ferry sector. Its main role is to facilitate net- working and communication within the sector and represent the interests of its members in political and regulatory areas. Emanuele Grimaldi is a member of the Board.

ECG, The Association of European Vehicle Logistics - The Group is a member of the non-profi t association ECG, which is based on Brussels. It promotes the interests of car carrier operators and the logistics sector. The ECG brings together suppliers of logistics services, motor manufacturers and suppliers of the sector. From 2009 to 2016, Costantino Baldissara, Commercial, Logistics and Operations Manager, served as President of the Association, actively promoting dialogue between suppliers, customers, authorities and institutions with regard to the fundamental requirements of the logistics chain.

ASPEN INSTITUTE ITALIA - A private, independent, international, non-profi t and non-partisan association which works to promote research and discussion and the exchange of knowledge, information and values. The Grimaldi Group participates as a Sustaining Member, meaning not only does it contributes with ideas for various programmes, but it also off ers fi nancial support for specifi c events on issues of signifi cant strategic interest. The directors of important Italian and foreign companies are involved with Aspen, as well as Italian and international personalities coming from the sectors of academics, politics, culture and media.

GloMEEP - Global Industry Alliance (GIA) - In 2017 the Group joined the GIA which has the aim of supporting the transition of ships and the related industrial segments to a future with low carbon emissions. The initiative was launched under the aegis of the GloMEEP (Global Maritime Energy Effi ciency Partnerships) project, organised by the IMO, destined to support developing countries in implementing energy effi ciency measures in the shipping sector. The GIA is made up of the IMO Secretariat and 16 leading companies and “effi ciency champions” including shipowners, classifi cation bodies, producers of engines and innovative technologies.

36 2017 Sustainability Report Ch.7 - We create value for our stakeholders

Protecting the health and safety of personnel on land and at sea is at the centre of the Grimaldi Group's policies

7.5 Safety and Security

The Grimaldi Group operates in full compliance (e.g. machine room accidents, fi res on board, ad- with current regulations on health and safety, in all verse weather conditions), through training, proper the areas in which it does business and requires shipbuilding methods, appropriate transportation compliance with and precise application of all the of people and goods, observance of itineraries and initiatives necessary to ensure the highest quality proper nautical maps and assistance in emergency standards, in line with its Integrated Management situations. System. The term security instead refers to all those measures aimed at protecting navigation and transport There are two basic aspects: activities, including the crew, from exogenous ac- safety and security. tions that could cause situations of danger (e.g. piracy, terrorism, smuggling of goods or people (migrants), illegal discharging at sea and other envi- The term safety refers to all measures aimed at pro- ronmental incidents), through adhesion to and com- tecting ships, people and goods on board from en- pliance with national and international regulations dogenous risks deriving from navigation activities, and conventions aimed at governing the behaviour which by nature involve dangerous environments to be adopted.

SECURITY

SAFETY

2017 Sustainability Report 37 Ch.7 - We create value for our stakeholders

7.5.1 Safety the basis of the company’s performance (conglom- Protecting the health and safety of personnel on land erate figure for all ships during the last 36 months), and at sea is at the centre of the Grimaldi Group’s the specific target for each ship (type, age, results policies, as well as preventing the risk of pollution at of previous inspections, etc.), the ship’s flag, and its sea, ensuring security for ships and their loads and classification register. safety of passengers and infrastructure. In US ports, the Group’s ships are, in addition, subject to audits by the USCG (United States Coast REGULATIONS Guard), which applies extremely stringent regula- On the subject of managing safe operations at sea tions, in particular as regards the environment. Also and preventing pollution, the Group is subject to the in the United States the Group’s ships have obtained provisions of the International Management Code a good score. for the Safe Operation of Ships and for Pollution In the other geographical areas where the Group’s Prevention (International Safety Management (ISM) ships operate, excellent performance levels have Code), approved in an IMO (International Maritime also been seen in PSC inspections, and in relation Organization) resolution in 1995. to various regional agreements (e.g. South America/ The ISM Code defines guidelines for safety manage- Vina del Mar PSC, West Africa PSC MoU, Mediterra- ment and requires that the “Company”, or the en- nean MoU, etc.). tity that is responsible for managing safety and pre- In particular, in the light of the PSC inspections car- venting pollution from ships, defines and implement ried out on the Group’s ships flying the Italian flag, an appropriate Safety Management System (SMS). at the end of January 2017 the detention index and The guidelines in the Code establish two types of the deficiency index came out, respectively, at 0% certification, which are periodically checked: the and 1.4%. DOC (Document of Compliance), which is issued to In 2017 the transfer of ISM management from the Company, and the SMC (Safety Management Grimaldi Deep Sea to Grimaldi Euromed continued Certificate), which is valid for each ship in the fleet. for the ships owned by the latter; the process is ex- In addition, the Code establishes that the required pected to be completed by May 2018. The perfor- procedures must be documented and defined within mance indices in the PSC field will however go to the Safety Management Manual, a document that make up two different statistics on the basis of the must be implemented on each ship and found on all management company of the Group’s ships flying ships and at the company’s offices. the Italian flag. The Group’s Safety, Quality and Environment de- Again in 2017 only two detention measures were re- partment (SQE) is responsible for the proper imple- corded for ships operated by the Group, both related mentation and updating of the Safety Management to the ro/ro-multipurpose vessel Grande Angola in System on board ships and at the company’s offices, the port of Antwerp. The irregularities found, related as well as carrying out periodic internal audits and mainly to fire prevention equipment and ventilation organising periodic audits for certification of the two and water treatment systems, were resolved in a DOCs and the SMCs for all ships. very short time, respectively in 6 days and 12 days. AUDITS AND INSPECTIONS As regards application of the Italian regulations on In addition to regular internal audits related to com- the safety of on board personnel, the Group is sub- pliance with procedures, the Group’s ships are also ject to the provisions of Italian Legislative Decrees subject to external inspections by independent enti- 271 of 27 July 1999 (for ships at sea) and 272 (for ties, which vary according to the geographical area ships in port). These norms have been incorpo- (Port State Control - PSC - inspections). rated into the aforementioned Safety Management As regards the Northern European countries and System Manual. Canada, the organisation known as “Paris MoU” PSC The companies subject to the ISM Code have pre- carries out on board inspections of ships to verify pared for continuous monitoring of the work envi- that international health, safety and environmental ronments through measurements/mapping carried standards are correctly applied, as well as verifying out by expert technicians, aimed at assessing and working conditions on the fleet. The frequency of reducing to a minimum the risks of work on-board ship inspections varies with a score calculated on ships.

38 2017 Sustainability Report Ch.7 - We create value for our stakeholders

PSC performance on Grimaldi Group ships with Italian flags 2017 2016 Type N° of inspections N° of detentions N° of inspections N° of detentions Paris Mou 92 2 80 0 Africa Mou 37 0 38 0 Mediterranean Mou 22 0 23 0 Nord America 11 0 6 0 Sud America 7 0 5 0 Asia Pacific Mou 2 0 0 0

PARIS MOU performance on Grimaldi Group ships with foreign flags 2017 Company N° of inspections N° of detentions ACL 9 0 Finnlines 34 0

Also for supplier activities, above all for technical • Number and type of accidents work done on-board ships, a qualification protocol • Number and type of near misses is implemented that takes into account compliance • Number and type of injuries to personnel with current workplace safety regulations and inter- • Analysis of the results of safety inspections and of ference risk assessments. both internal and third-level audits The companies subject to the ISM Code have es- • Analysis of the results of certification checks on tablished an inter-departmental working group that the various systems implemented (safety-securi- analyses all occurrences on-board ships and all ac- ty-quality-environment) cidents in order to share and analyse the causes and • Analysis of the performance of on-board per- any possible corrective actions, to avoid repetition sonnel of similar events, accidents and/or near-misses of • Results of training provided to on-board personnel a nautical nature (e.g. collision during manoeuvres, • Observatory on the entire legislative framework in etc.). These analyses also include the use of ma- the naval field noeuvre simulators that make it possible to recon- The companies subject to the ISM Code have pre- struct the event, analysing possible errors and any pared a specific annual exercise protocol for all corrective actions in detail. All events are monitored ships (on the basis of a monthly calendar) on the with the processing of statistical data and with par- subject of transporting hazardous goods. On the ticular attention to analysing injuries. basis of the scenario prepared by the company, all Particular attention paid to monitoring/measurement/ crews are trained to tackle an emergency related to comparative analysis of the following indicators: accidental spillage of hazardous goods; the said ex-

Safety Management International Ship Certificate (SMC): Security Certificate (SSC): n° 48 Audits in 2017 N° 49 Audit in 2017

25% 33% Compliance Compliance Non compliance Non compliance

75% 67%

2017 Sustainability Report 39 Ch.7 - We create value for our stakeholders

No of accidents on board ships with italian flag (2013 - 2017) 300

266

201 186 189

2013 2014 2015 2016 2017

ercise is carried out on a voluntary basis because it such accidents. is not provided for in the current legislation. HEALTH AND SAFETY TRAINING ON-BOARD ACCIDENT RATE Ground-based training of on-board personnel is At the end of 2017 an increase was recorded in structured by the Crew Department, based on as- the number of injuries, mostly slight, on board the sessment notes provided by the manager of the rel- Group’s ships flying the Italian flag compared to the evant on-board section (captain, chief engineer or previous year. This change is mainly attributable commissary). to an increase in the number of injuries involving In most cases, training courses for officers are or- crews and passengers. Injuries to passengers were ganised at the Naples offices, structured into sev- all slight and attributable to mere carelessness. The eral modules under the responsibility of the various percentage of these injuries to the number of pas- offices. sengers transported remains however very low, at 0.002% in 2017. The SQE Department is responsible for providing the following training modules: In accordance with the current legislation the Group’s ships report all events, even very slight 1 -Safety Management System (SMS) ones. Campaigns to raise awareness on ships for 2 -Security Management System (ISPS) monitoring and limiting any negative events are also 3 -Integrated quality/environmental management continuous. In particular, in order to strengthen fur- system (ISO9001-ISO14001) ther safety on board its ships, the Group has begun 4 -Port State Control (PSC) audit procedures for each event noted a process of analysis which The manager of the SQE Department, as the Com- will end with a report aimed at preventing repeats of pany Security Officer, provides and certifies refresher courses to Ship Security Officers every five

Type of accidents on board ships (n°) 2017 2016 Crew injuries 114 95 Passenger injuries 76 29 Stevedore/Third person injuries 21 15 Cargo damage (bad weather, OOCC) 21 15 Quay collision (manoeuvre error/bad weather) 19 13 Ship damage (OOCC, anchor loss) 16 7 Accidents with other ships (tugboats, barges, etc.) 0 2 Other 33 13 Total 300 189

40 2017 Sustainability Report Ch.7 - We create value for our stakeholders

2017 TRAINING COURSES N° OF COURSES N° OF PARTICIPANTS Safety/quality/environment 7 86

Manoeuvre simulator (Chief mates) 7 23

Refresher courses (Chief mates and captains) 12 21 years (chief mates and captains). As regards security management, the Group com- During 2017, 26 internal training courses were pro- plies with national, EU and international standards vided for maritime personnel, addressed to 130 em- and regulations that govern both aspects associated ployees. with navigation and operations in port. In particular, at the national level, the issue of secu- ON-BOARD FOOD SAFETY rity is governed by the National Maritime Security With reference to management of food products Programme (NMSP), while at EU level the Group op- on board, the Group, although management is out- erates in compliance with Regulation EC 725/2004 sourced to specialised third party entities, verifies on enhancing ship and port facility security. Outside that these entities meet relevant standards to ensure the EU, the International Ship and Port Facility Secu- implementation of tools suitable to prevent possible rity Code (ISPS) applies. contamination of food. The Group pays the greatest attention to pursuing In particular, during internal on-board audits, the the highest security standards on its ships. This in- implementation status of the Hazard Analysis and cludes providing continuous training for on board Control of Critical Points (HACCP) self-monitoring personnel, both on land and at sea, and through the procedures is verified, as well as the competence establishment of tools, structures and equipment of operators and support documents. The self-mon- aimed at mitigating security threats, (above all in ge- itoring system is completed by on-board sampling ographical areas subject to the threat of piracy and by experts to carry out microbiological analysis that human trafficking, such as North Africa, West Africa guarantees proper food preservation. and Greece), all while maintaining a suitably alert During 2017, no significant non-compliances were stance as regards the risks of terrorism. found. An intense programme of internal audits on board ships, carried out regularly by specialised personnel, 7.5.2 Security makes it possible to ensure satisfactory implemen- Security management activities, at sea and in port, tation of a security management system while main- consist of all the measures adopted by the Grimaldi taining the ship certifications provided for by the cur- Group to prevent and control, when possible, all the rent laws through audits carried out by the relevant types of illicit actions that can affect a ship. authorities.

2017 Sustainability Report 41 Ch.7 - We create value for our stakeholders

Also for 2017 large-scale (on board-ashore) exercises were held at the offices on the subject of pollution and security

In addition to regulatory requirements, the Group any threats on all ships of the corporate fleet flying also promotes supplementary initiatives in terms of the Italian flag, as well as checking the correct im- training and security exercises on land and at sea. plementation on board of the procedures in line Finally, the Group carefully and regularly monitors with the protocol. The exercise was completed with the issue of irregularities caused by exogenous satisfactory results, with no incongruities or delays causes, including the number of illegal immigrants in operations recovered (-60% in 2017, compared to 2016 on To strengthen monitoring related to transport of ships flying the Italian flag), irregular access to ships, hazardous goods companies subject to the ISM cases of smuggling, etc. Code have defined, on a voluntary basis, an annual During 2017, in addition to the obligatory certifica- exercise protocol for all ships, based on a monthly tion audits of ships on the subject of security (ISSC), calendar. Based on the scenario defined by the many unannounced inspections were carried out in company, all crews are trained to face an emer- foreign ports by local authorities (especially in the gency deriving from an accidental spill of hazardous USA and France) aimed at checking compliance materials. with the ISPS requirements; these inspections all ended with no irregularities. Further occasional (unannounced) inspections on the subject of security are carried out frequently in Italian ports and are conducted by port authority officials. Also in these inspections no irregularities/ problems were found. Also for 2017 large-scale (on board-ashore) exercises were held at the offices on the subject of pollution and security (Table Top Exercises); for these events experts in the sector were involved (Quali- fied Individuals for the anti-pollution procedures in the USA), and also the national and American authorities. In particular, in May 2017 an exercise was held with the aim of testing the ability to respond to

42 2017 Sustainability Report Ch.7 - We create value for our stakeholders

is a project developed by the Group, dedicated to training young people in middle and high school

7.6 Our role in the community

In the context of the Grimaldi Group’s activities, com- programmes are held on board Group ships and bining a global vision of the market with traditions include activities that allow students to familiarise and family values is decisive. The union of these two themselves with professions at sea. A solution to aspects allows the Group to develop initiatives that identify and focus the decisions of young people are not only business and customer oriented, but towards jobs close to them, and to develop skills also socially responsible. In particular, the Tourism and professional talents that are recognisable and Department develops partnerships with entities, valued in the job market. institutions and associations working in the social Grimaldi Educa is a project developed by the Group, realm, which have led to the creation of sustainable dedicated to training young people in middle and travel programmes and charitable activities. high school, with the objective of stimulating excel- Always attentive to the promotion of culture in South lence at school and contributing to the mobility of Italy and Europe, the Grimaldi Group has devel- young people with guided tours and educational oped cooperative relationships over the years with trips which are safe, cheap and respectful of the en- schools and the academic and business worlds. vironment, and assisting teachers in the selection of The Grimaldi Group’s attention to social issues educational trips and in the creation of training pro- reaches also to international questions with the jects that involve students through practical activi- launch of the partnership with the UNHCR, NGOs ties. In addition, special initiatives and discounts for and other non-profi t bodies, providing continual individual or class trips are reserved for students. contributions in kind for free transport on its ships of The Grimaldi Educa - Navigando si Impara (Grimaldi voluntary personnel, containers of humanitarian aid Educates-Sailing we Learn) project was agreed in and other material. Between 2010 and 2017 more 2015 with a memorandum of understanding with than 200 people and loads were transported in the the Italian Ministry of Education, University and Re- context of these actions. search (Ministero dell’Istruzione, dell’Università e della Ricerca - MIUR). 7.6.1 Investing in the future: Technical and professional high schools, such as collaborations with entities, nautical, technical, tourist and hotel schools, are the universities and research institutes focus of the Navigando Si Impara training courses, The Grimaldi Group proposes every year many dif- aimed at combining theoretical preparation with ferent training opportunities. These are educational practical activities carried out on board Grimaldi courses for nautical, tourist, hotel and technical in- Lines ships. These programmes can be personal- stitutions, off ering industrial, electro-technical, IT, ised, and the duration of the trip can be adjusted in mechanical, transport and logistics training. The line with the PON/POR frameworks and alternating

2017 Sustainability Report 43 Ch.7 - We create value for our stakeholders

school/work projects. to students of nautical, tourist, hotel and technical As in previous years the Group awarded to two stu- Institutions. Grimaldi Lines made six weekends avail- dents with the best school performance a scholar- able on-board the fl agshipsCruise Roma and Cruise ship of € 1,000 each in honour of Guido Grimaldi, and Barcelona, in permanent service between Civitavec- the possibility of gaining work experience on board chia, Porto Torres and Barcelona. the Grimaldi ships; it also rewarded youngsters who In 2017 the Group also organised “on-board events” distinguished themselves with merit during the Na- for schools, with activities dedicated to students with tional Competitions organised by the Ministry of high training content: Education, University and Research, and dedicated

Organised in partnership with Educational Tour and CONFAO it constitutes a curric- ular activity and enables students to learn real work processes through simulation of setting up and managing virtual businesses that operate online, assisted by real companies. The project enables students to operate as if they were in a company, through the creation, in their school, of a laboratory company in which it is possible to represent and experience the typical functions of a business. The guarantee of operations is ensured by the tutor businesses, by connection to the CONFAO platform and by rigorous application of the legislation in force in Italy. As a continuation of the IFS project Grimaldi Lines has launched the “On-Board Trade Fair” on its ships. This has already reached the 10th edition, and represents for students an important occasion for discussions and learning and a good opportunity to increase the “turnover” of their company. Stands are set up on the ship where the young people will display the products of their companies, conclude sales and purchases with virtual currency, discuss and compare their experiences. A voyage-event dedicated to Italian High Schools during which the students will compete in a didactic and interactive quiz game on questions extracted from the study programme, and on general culture, monuments and tourist sights related to the trip. The students of schools that have made an express request can take part in the “Travel Game Work on Board” where activities are planned on the questions of school-work alternation and can have the certifi cation of digital skills and trans- versal activities carried out on the ship Now at the sixth edition, aMare Leggere is the festival of literature for young people on the sea, created in partnership with “Leggere: tutti”. A four-day voyage-event with destination Barcelona to bring young people closer to the world of literature and books, with writing, journalism and photography meetings and workshops, projections of fi lms and plays. For High Schools it is also possible to provide for the performance of School-Work Alternation activities with the related certifi cation. A cultural event created in partnership with “Leggere: tutti”. On the occasion of World Book Day and Saint George’s Day, Barcelona is fi lled with roses and books. It is the custom, in fact, that on this day men give a rose to women who respond with a book. During the trip a full entertainment programme is put on: readings, plays, projections of fi lms and debates in the presence of famous writers. Grimaldi Movie Campus is the fi rst cinematography school organised on board a ship. Now at its third edition, it brings young people from middle and high schools closer to the world of cinema. The students are involved in creating short fi ctional fi lms, interviews, storytelling and short fi lms in general with the help of the fi lm- makers of the itinerant Festival CinemadaMare. For High Schools it is also possible to certify the activities as School-Work Alternation.

44 2017 Sustainability Report Ch.7 - We create value for our stakeholders

On-board Group ships are held activities that allow students to familiarise with professions at sea

In partnership with Educational Tour and Castellarte. This is a voyage-event that involves choirs and orchestras of middle schools with specialisation in music. During the stay on-board, the students fi nd themselves face-to-face in a real and proper festival of music at sea. During the stopover in Barcelona, the experience is en- riched by a visit to the Palau of Catalan Music, the only concert hall declared by UNESCO part of the World Heritage of Humanity. Voyage-events for middle schools organised in partnership with Educational Tour and OpusLab, this is activity in line with the indications of the MIUR on “Creative at- eliers and workshops for key skills". On the ships laboratory and educational testing spaces are set up with 3D printers, Arduino and Theremino boards, Shields, sen- sors, electronic components that make it possible to create real and proper educational projects and interactive panels in a technological environment as described in the SchoolKit manual prepared by the MIUR. The disciplines and scientifi c fi elds involved are: physics, Earth sciences, energy and biology. Now at the sixth edition, it is the national educational competition dedicated to students of the 4th and 5th years of public and private high schools. The event, invented and organised by Planet Multimedia, has the aim of promoting culture with interactive and multimedia technologies that actively involve young people. Grimaldi Lines, the main partner of the event, hosts the fi nal on board one of the fl agships of the fl eet (Cruise Roma and Cruise Barcelona), at harbour in the port of Civitavecchia.

The Group has continued its collaborations with the Short Sea Shipping, one of the main training centres academic and educational world. In particular, two in Europe, which has the aim of promoting short sea agreements were signed with the University of Bari shipping and intermodality through innovative sem- and the ITS Foundation Mo.So.S. (Mobilità Sosteni- inars. bile Sardegna - Sustainable Mobility Sardinia) for the Among the subsidiaries, Minoan Lines cooperates launch of new master courses. Instead, at the IPE of with the most important educational institutions Naples (Institute for Research and Educational Ac- and off ers concrete work opportunities. Promoting tivity), two scholarships were off ered, for an amount equality and equal opportunities in the sector in of € 4,000 each, to the best students in the Master which it operates is the company’s main objective in International Management: Strategies, Shipping and is supported at all levels of the administrative and Logistics for foreign markets in memory of the structure. Cav. del Lavoro Guido Grimaldi. In addition, the company invests in the training of In the European context, the Grimaldi Group is its employees with the aim of improving continually among the founding members of Escola Europea de their professional development.

2017 Sustainability Report 45 Ch.7 - We create value for our stakeholders

€ 1,173,210 disbursed by the Grimaldi Foundation Onlus for charitable purposes

7.6.2 The Grimaldi Foundation Onlus 2007 Start of the foundation The Grimaldi Foundation Onlus, founded in 2007 by the Grimaldi family, is a non-profi t organization that Launch of the pursues exclusively purposes of social solidarity. 2008 “Casa Tonia” project The Grimaldi Foundation Onlus is today a reference point in the fi eld of solidarity, working on projects in 2009 Collaboration favour of families in diffi culty, fi nancing deserving as- with Vincenziani sociations/voluntary bodies, supporting families of seafarers in economic diffi culty. 2010 The fi rst multi-annual The Grimaldi Foundation Onlus is the leading private project is completed family foundation of the Centre and South of Italy for amounts disbursed and at the end of 2017 it had net Growth of maritime assets of € 16,687,845, fi nanced mainly with dona- 2011 projects and collaborators tions from the Grimaldi Family, while as from 2018 it will increase signifi cantly its assets and its role in society changing from a Disbursement Foundation to a Creation of sports fi elds 2012 in the suburbs of Naples Management Foundation. Every year, the Foundation benefi ts from a grant from Founding member of the the Grimaldi Group of 1% of its net profi ts achieved by 2013 San Gennaro Foundation the three Italian companies Grimaldi Group, Grimaldi Euromed, Grimaldi Deep Sea, and of the 5XTHOU- SAND of taxes that numerous benefactors decide to 1% of Grimaldi Group 2014 profi ts to the foundation allocate to its activities. All the assets and income of the Foundation are used for charitable purposes or invested in low-risk securities (corporate bonds with 2015 Launch of the fi rst three high rating, guaranteed policies and government projects in Africa securities) the income from which is reinvested in charitable activities. The asset management policy is aimed at not eroding the Endowment Fund and the 2016 Launch of the “Earthquake Help” Project Tied Assets approving and fi nancing projects only when there is adequate fi nancial coverage guaranteed by the income from the investments made. 2017 10 years of the Grimaldi Foundation Any extra funds related to the Foundation's 2017 budget are entirely allocated to increasing existing Net Equity.

46 2017 Sustainability Report Ch.7 - We create value for our stakeholders

THE FOUNDATION IN FIGURES

Net Equity Grimaldi Foundation Onlus

16,000,000

14,000,000

12,000,000

10,000,000

8,000,000

6,000,000

4,000,000

2,000,000

0 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Amounts disbursed by the Grimaldi Foundation Onlus 1,173,210 939,404

670,392

432,883 383,505 343,713 338,556 305,650 323,836 367,000

146,800

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

126 projects of whi ch 27 Multi-annual 57 projects from 2007 to 2017 active in 2017

<0.1% fleet 15%in Projects favour of 1,173,210€ expenses families of the spent in 2017 administrative 5,425,000€ spent from 2007 to 2017

2017 Sustainability Report 47 Ch.7 - We create value for our stakeholders

In 2017 the Foundation disbursed € 1,173,210, of Grimaldi Foundation can be divided into those sup- which 12.54% to projects in favour of families of em- porting young people at risk and their families who ployees and seafarers suffering difficulties. This last live mainly in the Campania region, and those of category of projects is aimed at providing material extraordinary help in emergency situations that can support to situations of family hardship, related to occur in Italy and around the world. deaths, disabilities or illnesses of seafarers and col- Alongside young people laborators of the fleet. In the Campania region the needs for support to the 7.6.2.1 The foundation’s projects most disadvantaged bands of the population are and remain very great, and in comparison the offer From the start of its activities the Foundation has of resources and means is always little. Right from been giving contributions to numerous local, na- the start the Grimaldi Foundation decided, for this tional and international non-profit associations⁸ reason, to give its contribution to fill this gap, ac- with a view to annual and multi-annual collaboration cepting proposals, trusting in many of the Associa- and support, fundamental for implementing and tions already present on the ground and disbursing achieving the objectives of the project. every year large amounts to support projects of In 2017, the Grimaldi Foundation Onlus decided to third-party entities with strong social impact, with divide the management of its projects into three the main objective of supporting young people at macro-groups: risk in the city of Naples and their families. • Social Welfare Projects In these years help has been given to inner-city par- • Projects to support Seafarers and Collaborators ishes, schools, associations serving young people • The Family School and families in difficult situations, Community Foun- For its tenth year of activity as well as implementing dations such as the San Gennaro Foundation, family projects already launched and consolidated, it was homes and poly-functional centres such as the Casa decided to devolve some of the resources available di Tonia and many other meritorious players in the to the launch of a new project “The Family School” community. considered fundamental for improving the quality of Social Emergencies life in areas in and around Naples, where the project was begun. Besides the ordinary channels of support in favour of young people and their families, on several oc- 7.6.2.1.1 Social Welfare Projects casions the Grimaldi Foundation has supported projects for social emergencies in critical situations PROJECTS IN NUMBER which required extraordinary help that exceeded the classical criteria of choice. This was the case with the explosion, in 2014, of the Ebola epidemic in West Africa which caused approximately 10,000 victims mainly in Guinea, Liberia and Sierra Leone or 79 social with the tragic earthquake which struck Central Italy projects of 36 Social which 12 multi- projects in 2017 in 2016 causing about 300 deaths and 500 injuries. annual, from 2007 to 2017 Then there are the daily social emergencies of which we hear very little because they are not news, but which have for some time been the subject of the attention of the Grimaldi shipowners, such as the serious humanitarian crisis experienced by African 964,130€ 4,603,233€spent from countries such as Benin, where the Foundation has 2007 to 2017 contributed to building a school in a densely pop- disbursed in 2017 ulated and very poor area, or the pain and margin- alisation of invisible people, the homeless, increas- The social welfare projects supported by the ingly present in Naples and its province.

8) “Centro Accoglienza Vincenziana”, “Associazione a Tutti i Colori”, “Fondazione di Comunità San Gennaro”, “Associazione A Ruota Libera”, “Fondazione San Camillo”, “Associazione SOS Ospedale Santobono”, “Associazione La bottega dei Semplici Pensieri”, “Associazione Italiana Parkinsoniani”, “Fondazione Gesuiti”, “Associazione Livia Dumontet”, “Associazione Cantori Posillipo”, ASD De Carlo Soccer, and more.

48 2017 Sustainability Report Ch.7 - We create value for our stakeholders

Family School: Long Live Old People project largest private project for the over-75s at regional level

Thanks to its work the Grimaldi Foundation has be- pendent children, the “Family School Project” - income one of the most important promoters of social novative and one of a kind - intends to provide a solidarity not only in the Province of Naples but also concrete answer for the territory and for the people in surrounding areas. who live there. 7.6.2.1.2. Projects for seafarers The project involves some of the leading and most expert social players in the community of the his- PROJECTS IN NUMBER torical centre of Naples, from the Community of Sant’Egidio to schools of recognised prestige in the area, to the capillary local parish network, in the ambitious project to create a hub of reference 45 Projects for 21 projects 37 seafarers active in 2017 for training and support for all components of the family. For the creation of the “Family School Project”, the

Foundation began negotiations for the purchase and use of a specific structure in the Historical 812,216€ 146,580€ disbursed disbursedin 2017 Centre of Naples to create a multifunctional social (2007‑2017) centre. The Grimaldi Foundation plans to allocate more than € 10 million to purchase the building and Human resources are the most precious asset of more than € 1 million a year for its running costs. Shipping Companies and the basis of their success. Maritime personnel in particular do a fundamental The “Family School Project” is already active from and exacting job, and despite the growing protec- the beginning of 2018 with two projects: tions and the attention paid to safety, seafaring pro- • «Long live old people» for the over-75s, a professions record a higher injury rate compared to ject that follows and offers a hand to often alone other professions. and abandoned old people, who turn out to be a All activities that protect and enhance personnel hidden resource for the community. The project are social responsibility actions and assume central plans to put in place in three quarters of Naples’ and strategic importance for shipping companies, Historical Centre a pro-active monitoring plan of creating lasting relationships of reciprocal trust with more than 1,600 old people, with 6,000 home the company, and guaranteeing a healthy and safe visits a year, taking in hand about 400 of them. It working environment. is also planned to create and run two day centres, two family homes and to organise events dedi- 7.6.2.1.3 The Family School Project cated to them in the centre of Naples; The Grimaldi Foundation Onlus chose to celebrate • «Spes-F» for parents, the only initiative of its kind its 10 years launching its first large project managed in Italy, which intends to accompany and train on its own, in favour of low-income families in the parents in situations of difficulty on various fronts city of Naples and its province: the “Family School and challenges that family and professional life Project”. sets them, giving priority to support for large and In a region such as Campania which has the highest low-income families and to those with disabled number of low-income families with many de- children.

2017 Sustainability Report 49 Ch.7 - We create value for our stakeholders

7.6.3 Humanitarian aid coast of Algeria. In 2017 the Group, making use of its core business »» In July a lorry full of basic goods, food and toys and its presence in the Mediterranean, offered its for children was carried free of charge on the ship help in the following humanitarian initiatives: Eurocargo Patrasso from the port of Venice to »» Grimaldi Lines joined #EmergenSea, the cam- Patras, to reach refugee camps in Athens and Pi- paign against pollution launched by the Italian raeus. environmental NGO Marevivo. “Recycle, reduce, »» The Group continues with the support to the hu- reuse” is the slogan chosen to promote small ac- manitarian project “A backpack for everyone” for tions and virtuous conduct aimed at safeguarding the right to study in Benin which offered the trans- the environment and the sea. Among these: waste port of teaching material collected by the Consu- disposal only where permitted and not into the late of Benin in Naples (for an amount of approxi- environment; recycling and recovery; preserving mately € 4,000) to be distributed to the children of resources; consuming responsibly, observing cor- seven municipalities in Benin. rect conduct on the beach. »» In July the ship Cruise Europa transported human- »» Grimaldi Lines offered twice free transportation itarian aid from Ancona to Patras. The Grimaldi to a van of the Spanish NGO G-Fire’s bound to Group provided free tickets to Feg Auslandshilfe, Greece, carrying a load of humanitarian goods for a German NGO which distributed essential items refugees landed on the island of Lesbos. free on behalf of the Federation of Free Evan- »» In June, the ship Grande Togo, deployed between gelical Churches in Germany, to hospitals, fami- Northern Europe and the Mediterranean, offered ly-home structures, orphanages, old and disabled assistance to a ship carrying 20 migrants near the people’s homes and to other needy people.

ACL FOR SOCIETY ACL understands and supports the positive externalities created for the community through the actions carried out for sustainability by the Grimaldi Group. To this end ACL has created a group led by employees entitled ACTWELL, which is committed to making its resources, where possible, available for the needs of the community where ACL operates. ACTWELL strengthens Atlantic Container Line’s commitment in supporting these organisations all over North America and in Europe, where it can make the most significant contribution. In the United States, Canada and the European countries where ACL operates the funds allocated converge in favour of several non-profit associations and organisations that perform an important role for the local community.

FINNLINES FOR SOCIETY In 2017, Finnlines made contributions for social initiatives of approximately € 76,000, including the projects “Aamu Pediatric Cancer Foundation” specialised in oncological research for children; support for the maritime activity platform “SeaFocus”; sponsorship of cultural institutions, including Tetbury Rail Lands Regeneration Trust; sponsorship of environmental institutions, including the Baltic Sea Action Group, which acts as a promoter and catalyser of concrete actions for tackling the challenges of the Baltic Sea.

MINOAN LINES FOR SOCIETY Minoan Lines supports firmly a purely anthropocentric philosophy. Awareness of social responsibility has led the company to a series of sponsorships, in the form of financial support or free tickets for its ships, with the objective of improving, encouraging and rewarding meritorious initiatives, and with the aim of returning some of the financial benefits to the local community of Crete and of continental Greece. Taking into account the socio-economic situation and the real needs of passengers, Minoan Lines has chosen to support sensitive social groups (the poor, unemployed, people with special needs, etc.) who suffer from the current economic conditions. This approach is strategically integrated into the Company’s commercial and annual tariff policy through granting special discounts, reduced prices or even free tickets. The sponsorship action plan of Minoan Lines covers a vast range of beneficiaries such as sports teams, museums, cultural associations, educational institutions, cultural centres and various non-profit organisations.

50 2017 Sustainability Report Environmental 8 responsibility

he Grimaldi Group operates in compliance with the Quality and Environmental Management System, Tlaws, regulations and other international, na- and every time it is deemed necessary to hold additional and local norms in effect and applicable to en- tional meetings. In 2017, the Committee met to draft vironmental and management aspects of the corpo- the annual improvement plan, later presented to the rate activities, products and services, within the field BoD for approval. of application defined for its Quality/Environmental In line with what is defined in the Integrated Quality/ Management System. Environment Policy, the Group operates with a con- To better monitor and manage its integrated quality tinuous improvement approach to environmental and environment policy, the Group has established performance and the use of technological processes an Internal Quality and Environment Committee, which meet the criteria of efficiency, efficacy and re- chaired by the quality and environment manager, duction of impacts. and consisting of the managers of the Group’s main While a single Group-level environmental policy is departments and sectors, which annually prepares still being defined, the subsidiaries are moving for- an Improvement Plan that is approved by the BoD. ward with significant energy efficiency initiatives, The Committee meets at least once a year to review outlined in subsequent sections

8.1 The regulatory framework of reference

The Grimaldi Group operates in compliance with As regards pollution prevention, the Group is sub- current regulations, whether national ones related to ject to what is established in the Marpol Convention the specific geographical areas in which it operates (International Convention for the Prevention of Pollu- or international ones. tion from Ships), ratified in 2001 by 161 member countries of the IMO, and aimed at reducing to a minimum At an international level, the International Maritime pollution from hydrocarbons, toxic liquid substances Organization (IMO)⁹ is the main body that defines transported in bulk, toxic substances transported on global standards to govern environmental, health pallets, black/grey water (sewage), solid waste, and and safety performance in the maritime sector emissions of toxic gases. worldwide. All ships from countries that have signed the Marpol Convention are subject to the related provisions, regardless of the location in which they are navigating and the country in which the ship docks may carry out on-board inspections to check the degree of compliance with international standards, detaining the ship in port in the case of significant non-com-

9) The International Maritime Organization is an independent agency within the United Nations, created in 1958 with the goal of developing principles and techniques for international shipping (www.imo.org). 172 member states and 3 associate members belong to the IMO.

2017 Sustainability Report 51 Ch.8 - Environmental responsibility

pliance. adopted by the IMO in 2011, with which new de- In order to quickly respond to developments in en- sign targets were established through indices that vironmental legislation, the Group has established identify efficiency by category of ship. a permanent observatory that monitors progress in • Reducing the intensity of harmful emissions of regulations and promptly prepares any needed im- carbon dioxide (CO2) of international shipping plementation procedures. for transport activities through a decrease in the Based on an IMO study10, in 2012 the amount of emissions of carbon dioxide per tonne-km as an CO2 emissions produced by the shipping sector average for international maritime transport, by amounted to around 796 million tons, equal to 2030 of at least 40% compared to 2008, with the around 2.2% of the volume of total global emissions. hope of reducing them by 70% by 2050. This figure takes on more significance if we consider • Reducing the emissions of greenhouse gases pro- that around 90% of global freight transport takes duced by international shipping and reducing the place via the sea. total annual emissions of greenhouse gases by at In the maritime transport sector, identification of least 50% by 2050 compared to 2008. strategies that improve fleet energy efficiency offers The European Commission, with the publication of a dual advantage - on one hand it helps to reduce its White Paper on the Future of Europe, has estab- the environmental impact of operations, and the lished that CO2 emissions coming from maritime other it reduces procurement costs, as fuel is the transport must be reduced by at least 40% with re- largest cost item for shipping operators. Hence, it spect to 2015 levels, by 2050. To that end, in 2013 is a “win-win” strategy. In fact, the economic advan- the Commission developed a strategy11 to integrate tage for the company translates into similar advan- the reduction of maritime emissions within a wider tages for the environment and communities. European policy to reduce greenhouse gas emissions, focused on the following objectives: In order to reduce the quantity of CO2 emissions of the shipping industry, in line with the targets of 1. monitoring, reporting and verifying CO2 emis- the Paris Agreement adopted by the United Nations sions from ships with GT exceeding 5,000 tons, in 2015, in April 2018 the IMO reached a historical on routes with at least one port of call within a EU agreement on climate with the adoption of an ini- member state; tial strategy for reducing greenhouse gas emissions 2. defining targets for reduction of greenhouse gas produced by international shipping including a spe- emissions from maritime transport; cific reference to the pathway of reduction of CO2 3. defining and implementing other tools, including emissions in keeping with the targets of the Paris market-based mechanisms, with an eye to the me- Agreement adopted by the United Nations in 2015. dium-long term. The IMO’s strategy sets the objectives of: With reference to the first objective, in 2015 Regu- • Reducing the intensity of harmful emissions of lation (EU) 2015//757 took effect on the monitoring, carbon dioxide (CO2) of ships through imple- reporting and verification of carbon dioxide (CO2) menting the Energy Efficiency Design Index (EEDI), emissions generated by maritime transport, also known as the EU MRV (Monitoring, Reporting, Verifi-

10) Third IMO Greenhouse Study 2014 11) Integrating maritime transport emissions into the EU's greenhouse gas reduction policies, European Commission, 2013

52 2017 Sustainability Report Ch.8 - Environmental responsibility

cation) Regulation. Efficiency Management Plan, with the goal of plan- In order to be compliant with Regulation (EU) ning, implementing, monitoring and measuring its 2015/757, the Group created for each company ship own environmental performance. The Plan also in- a Monitoring Plan which shows the CO2 emission dicates standard procedures and dedicated actions, sources present on board the ship, the procedures as well as annual objectives for emissions reduction, for measuring fuel consumption and the methods with dedicated forms to assess CO2 emissions pro- for calculating CO2 emissions produced in ratio to duced on each voyage. the load transported, passengers, miles travelled Every ship also has an International Energy Effi- and hours of navigation. The actions described in ciency Certificate approved by the company RINA. the plans were translated operatively into imple- For emissions of greenhouses gases (GHGs), the mentation of an ICT system for data collection and Group’s three Italian companies carry out with processing. RINA a GHG Inventory under the terms of UNI EN In addition each Group ship has its own Ship Energy ISO14064-1.

8.2 Our approach to the challenges of the future

8.2.1 The integrated management system ti-pollution procedures have been implemented In order to effectively manage its business and which include personnel training and exercises, in- guarantee customer and stakeholder satisfaction cluding joint land/sea exercises. in terms of the quality of services provided, safety For example, in the case of spills at sea, an emer- in operations, protection of workplace health and gency protocol is immediately activated, on the safety and reduction of environmental impacts, the basis of which a company Crisis Management Group Grimaldi Group has developed an Integrated Man- meets and procedures based on contingency plans agement, Quality and Environmental System, with are begun (for more information, please see section the creation of a Single Management Manual that 8.4). describes its operation. Another important pillar of the Integrated Manage- The Integrated Management System adopted by the ment System is the management of suppliers and Group covers the Italian companies Grimaldi Group S.p.A., Grimaldi Euromed S.p.A. and Grimaldi Deep the monitoring of their activities. In fact, special care Sea S.p.A., which have completed the process of is taken in reviews done by the management and making their quality and environment management by all the company departments involved in the pro- systems compliant with the standards ISO9001:2015, cesses. for the quality guarantee, and ISO14001:2015, for Finally, recently the three main Italian companies of compliance with environmental requirements during the Group, after audits, were granted by the Cus- construction, development, production and assis- toms Authorities full AEO (Authorised Economic Op- tance. These certifications were issued by the cer- erator) status (customs safety and security), which is tification body RINA (Registro Italiano Navale) to the highest level of recognition in terms of customs the three aforementioned companies and cover the reliability and security in the context of the logistics management of maritime transportation of freight supply chain. Recently, the AEO recognitions was and passengers with own and/or leased ships. To assimilated and is therefore equivalent, to the anal- this end the new manual and the new management procedures were implemented; these introduced ogous certifications issued by the Japanese and the concept of risk assessment into management of American authorities (C-TPAT: Customs-Trade Part- the corporate processes in the areas of quality and nership Against Terrorism). the environment. Prestigious awards received year after year from the In relation to the Group’s environmental pro- Group’s main customers also testify to the level of grammes, monitoring plans have been prepared for excellence the company has achieved (e.g. awards water, ground and air emissions with related plans issued by leading global car manufacturers, in- to eliminate and reduce the same. Additionally, an- cluding Ford, GM, FCA, etc.).

2017 Sustainability Report 53 Ch.8 - Environmental responsibility

GRIMALDI EUROMED has signed a voluntary agreement with the Ministry of the Environment to promote shared projects aimed at analysing and reducing the impact of the maritime transport sector on the climate. The Group also intends to further strengthen its environmental policy by adhering to voluntary initiatives and commitments in line with government policies in the context of the Kyoto Protocol and the European Union’s Energy and Climate Package. The aim of the voluntary agreement is to begin cooperation to achieve the following objectives: - Calculating the ecological footprint (or Carbon Footprint) of maritime transport with associated accounting for CO2 emissions produced in relation to loads transported, using international procedures such as ISO 14064-1, ISO 50001, MRV, etc. - Identifi cation of actions aimed at reducing emissions from various activities subject to carbon footprint calculation. - Defi nition of an emissions management system for the maritime transport sector. Grimaldi Euromed is a leader in maritime transport and a pioneer in environmental sustainability, with the goal of reducing CO2 emissions from its organisation year after year, both in absolute value and relative to the scope of work, that is load transported per mile travelled through its fl eet, which is considered one of the most eﬃ cient at the global level.

The foreign companies of the Group are also in- most critical aspects and implement suitable man- creasingly aware of structured management of en- agement and prevention measures. vironmental and social issues, so as to monitor the

ACL FOR THE ENVIRONMENT ACL has always been committed to operating with ships with the highest environmental and safety standards. ACL, in fact, can boast that it was one of the fi rst companies to have the entire fl eet certifi ed under ISO 13000, the international certifi cation on safety and environmental protection. In addition, in the last few years the company has begun to renew the fl eet of ships of the “G3 type” with ships of the “G4 type”. The new fl eet of ships is faster, more eco-friendly and effi cient with a reduction in fuel consumption per TEU (Twenty-foot Equivalent Unit, unit equivalent to a 20-foot container) of more than 50% and a speed increase of 10%. As regards the scrapping of ships, ACL has always entrusted the job to recycling structures with dimensions such as to be able to adapt to the size of ro/ro ships, the largest ships in the world, and capable of meeting the highest environmental and safety standards. To guarantee further that the ship recycling plant complies with all the standards required, ACL sends to the site a dedicated team to monitor every aspect of the operation. MINOAN FOR THE ENVIRONMENT Minoan Lines attributes great importance and priority to the management and improvement of energy performance in order to reduce the impact of ships and protect the environment. In particular, the company manages recycling procedures in collaboration with the leading companies in the management of solid and liquid residues and uses consumable materials, replacement parts and equipment respectful of the environment. The Minoan Lines fl eet was the subject of actions aimed at obtaining fuel savings and guaranteeing the maximum energy effi ciency, with a reduction of consumption and emissions of approximately 24%. In addition the ships follow, where possible, low-speed routes and consume exclusively marine gas oil with very low sulphur content during docking in ports making it possible to maximise the functions of the ships minimising carbon dioxide emissions.

54 2017 Sustainability Report Ch.8 - Environmental responsibility

-3.3%

CO2 emissions per nautical mile (2017 vs. 2016)

FINNLINES FOR THE ENVIRONMENT Finnlines has invested more than € 1 billion in the last 12 years to renew its fleet with ships that are larger, more modern and efficient from the energy point of view, installing exhaust gas purifiers to remove the sulphur and harmful particles and providing for work to lengthen the ships, thus reducing the emissions per tonne transported. In addition, Finnlines has introduced a new system for monitoring and measuring the efficiency of vessels. The system will enable access to more detailed and reliable data on a leg-by-leg basis, which is a requirement to comply with the MRV (Monitoring, Reporting and Verification of CO2 emissions) Regulation and with the IMO (International Maritime Organization) data collection system. The importance of introducing this new technology is increased by the fact that Finnlines operates mainly in areas where emissions of sulphur oxide content in fuel are controlled - Emission Control Areas (ECAs) -, that is the Baltic Sea, the North Sea and the English Channel, where the limit of sulphur content for fuel oil for ships has been 0.1% since the beginning of 2015. The company is therefore well prepared to comply with the future global emissions limit of 0.5% for 2020, as well as that of 0.1% imposed in the ECA areas.

8.3 We invest in innovation

During 2017, the companies of the Grimaldi Group increasing the load capacity by lengthening four ro/ have moved forward with numerous projects aimed ro ships of the Breeze series with options for an- at reducing the environmental impacts of the ships. other two, with work entrusted to the Remontowa The initiatives have made it possible to meet objec- SA shipyard in Danzig, Poland. The work on the first tives for improvement in relation to CO2 emissions four vessels (the Finntide, Finnwave, Finnsky and per nautical mile (-3.3% compared to 2016) and in Finnsun) was completed between November 2017 relation to SO2 emissions per nautical mile (-6.2% and May 2018, while the completion of the work for compared to 2016). Total CO2 emissions in ratio to the two options exercised in March 2018 (for the the total number of ships remain, instead, almost un- vessels Finnsea and Finnbreeze) is expected by changed. the end of 2018. The increase in capacity of almost 30% for each unit will reduce considerably energy During 2017, re-blading work was completed on five consumption per unit transported compared to the new ships, as were the installation of 6 new scrubber original ship. plants (3 on existing ships, 3 on new constructions delivered during the year), and the application of lat- In addition, in 2017 a further project was studied to est-generation silicon paint on 20 hulls. lengthen two flagships of the fleet, the Cruise Roma and Cruise Barcelona. The work will make it pos- The Group, in addition, launched a new investment sible to create new spaces, including 80 beds in plan for Finnlines which provides for a commitment cabins, two lounges for 450 seats, a new restaurant of approximately € 70 million for actions aimed at with 270 seats and additional space for 600 linear

2017 Sustainability Report 55 Ch.8 - Environmental responsibility

metres of heavy rolling goods. The total capacity consequently, in CO2 emitted at sea. will thus rise to 3,500 passengers. This project was Additionally, on certain Group ships an additional signed in 2018 with the Fincantieri group (implemen- device has been installed between the propeller and tation planned in 2019). the rudder, known as Promas Lite, able to reduce The investment plan described will make the Group’s vortical losses and thereby further increase propul- fleet even more efficient, with environmental bene- sion efficiency. In 2017, the re-blading project was fits involving a greater reduction in CO2 emissions successfully developed, and as of today approxi- per cargo unit. mately 30 ships have completed the process. These Below is a brief description of the efficiency initia- propulsion efficiency projects are responsible for tives provided for in the 2014-2017 plan: annual savings of more than 220,000 tons of CO2. In 2018, another seven propulsion efficiency projects Efficiency of the hull – With more than 80 are planned for the same number of company ships. ships, the Grimaldi Group is one of the businesses that have invested most in the new “Foul Release Scrubbers - In order to comply with regulatory Coating” technology, called also silicon, which un- requirements which, as of 2015, establish sulphur like the standard release coating, is non-toxic paint emission limits of less than 0.10% for ships oper- which does not release poison into the sea and is ating in the ECA areas12, the Group has invested in capable of reducing the friction of the hull with a the installation of "scrubber" systems, with reduction notable increase in efficiency. The increase in effi- powers that offer SO/CO ratios, in the smokestack, ciency recorded thanks to application of silicon was lower than MGO (Marine Gas Oil) combustion, re- on average 10%, leading to an annual reduction of ducing also emissions of particulate and unburned approximately 230,000 tonnes of CO2. Thanks to fuel by around 70%. At the end of 2017, 28 company the investments carried out with the upgrade to sil- ships had scrubbers and in 2018 delivery of two new icon, the Grimaldi Group was the first to obtain vol- Car Carriers with hybrid scrubbers is expected from untary GoldStandard certified “carbon credits” in the the Yangfan shipyard. In addition in 2018 a retrofit maritime sector: as of today approximately 150,000 plan will begin with a view to 2020 when on 1 Jan- carbon credits (each carbon credit represents a uary IMO MARPOL ANNEX VI will come into force tonne of CO2 avoided thanks to energy efficiency introducing a new sulphur limit of 0.5%. programmes) have been generated and certified for Flow meters – From 2012 to the present, the me- the Group. ters used to measure daily fuel consumption on all At the end of 2017, investments in hull efficiency the Group’s ships have been replaced with new involved all the Group ships, extending know-how mass flow meters, with a Coriolis effect that allow also to Finnlines and Minoan ships. Additionally, 20 accurate measurement of the quantity of fuel con- upgrades of this silicone coating were done during sumed by the main propulsion engines. Over the the year, using the latest-generation product. next few years the use of these instruments will be Propulsion efficiency - The increase in the extended to measuring fuel consumption also in bunker price at the global level has meant that many auxiliary engines, used to generate electricity. Again ships operate at a lower speed than is possible, in starting from 2012 a programme began which made order to limit fuel consumption. Starting in 2012, the it possible to equip the ships with instruments to Grimaldi Group became a pioneer in the develop- measure the quantity of fuel loaded on board very ment of a re-blading project which, thanks to the in- precisely. A total of 49 ships have been equipped novative profile of the blades, makes it possible to with these devices (mass flow meters also with a increase propulsion efficiency under normal oper- Coriolis effect). Further instruments have also been ating conditions. The increase in efficiency obtained purchased and these will be installed on board on through certain re-blading projects has exceeded both existing ships and new constructions in 2018. 20% (as certified by an independent third party) and The target set is to have 55 ships fitted with these translates into a reduction in fuel consumption and, instruments by the end of 2018.

12) Emission Control Areas, these are special areas (SOx Emission Control Areas) in which sulphur emission limits are set, specifically for the content of sulphur in the fuels used, which are more severe than the limits applied globally.

56 2017 Sustainability Report Ch.8 - Environmental responsibility

Grimaldi Green 5th Generation a new series of hybrid ro/ro ships which use last-generation engines controlled electronically

8.3.1 Grimaldi Green 5th it possible to keep the load on the thermal engine Generation (GG5G) constant (maximum efficiency) reducing all the tran- During 2017 a study of the new ro/ro ships of the sients that cause extra consumption and emissions. fleet was carried out, after which in 2018 orders for 12 The load peaks will be managed by batteries con- new ships were placed with Asian shipyards. These nected to reversible-axle alternators, which can new ships, which are expected to be delivered work, that is, not only as generators but also as mo- starting from 2020, will be capable of transporting tors. more than 7,800 linear metres of rolling stock, equiv- The Air Lubrication System is an innovation capable alent to about 500 trailers. The loading capacity of of reducing the friction of the hull, through a flow of the garages of these ships is twice that of the largest small air bubbles under the “flat bottom” by means ships currently operated by the Neapolitan Group of specific blowers controlled with VFDs (Variable and three times that of the previous generation of Frequency Drives). The flow of small bubbles under ro/ro ships, but with the same fuel consumption at the hull is capable of reducing its resistance to fric- the same speed. This means twice the efficiency tion. measured in consumption / tonne transported. The hull will also be treated with a cycle of non-toxic The design of the new constructions entitled silicon paint of the latest generation based on the “Grimaldi Green 5th Generation” (GG5G) was devel- concept of “free surface energy”, characterised by oped by the Group’s Technical and Energy Saving low surface roughness which makes it possible to Department in partnership with the Danish naval de- reduce friction with the sea and not to release any sign studio Knud E Hansen. These are the first exem- substances into the water. plars of a new series of hybrid ro/ro ships, which use As regards sulphur emissions, special devices on latest-generation engines controlled electronically board combine the sulphur emitted by the internal and powered by fossil fuels with treatment of the combustion engines with the natural alkalinity of exhaust gases at sea (sulphur (SOx) and particulate seawater, creating non-harmful sulphite which will (PM) emissions opportunely treated and reduced be released into the sea, observing all the qualita- with post-combustion plants) and electricity during tive limits of pH, turbidity and PAHs (Polycyclic Aro- stays in port, guaranteeing “zero emissions in port”. matic Hydrocarbons) set by the IMO. Three of these While at berth, they are in fact capable of meeting ships will be operated by Grimaldi Euromed in the the demands for energy of on-board activities with Mediterranean while the other three, of the ice-class just electricity stored in lithium batteries that are re- category, will be purchased by the subsidiary Finn- charged during navigation by shaft generators and lines and used in the Baltic Sea. by 600 m2 of solar panels. Navigation, instead, will benefit from two innovative 8.3.2 Research projects and innovation systems: Peak Shaving and Air Lubrication. Also in 2017, the Grimaldi Group co-financed var- Peak Shaving can be enabled once the batteries ious research projects through its participation in have been recharged (even partially) and will make programmes such as the National Operation Pro-

2017 Sustainability Report 57 Ch.8 - Environmental responsibility

gramme (Programma Operativo Nazionale - PON) In relation to sub-area 2, the project identified spe- “Research and Competitiveness 2007-2013” and cific innovative ICT solutions for port and freight ter- Horizon 2020. minal logistics, which were implemented in specific One of the most important initiatives is “MAR.TE. prototype products. The results may however have S.c.ar.l.”, a consortium established in 2013 through had an impact on other industrial sectors, in terms a public/private partnership, with the objective of of reuse and resale. developing Research and Innovation projects in the The main purpose of the Safety Link for Sea/Land integrated land/sea logistics sector. Its projects are Logistics project was to analyse, define and develop aimed at increasing efficiency in land/sea logistics, systems and technologies that will ensure greater through managing the customs release of goods ar- safety and efficiency in the exchange of goods, ve- riving by sea and sorting in the freight terminal area hicles and people along the road corridor between where the goods are transported by land. port and freight terminal. This was in order to im- The Grimaldi Group took part in two projects de- prove the safety and logistics of land-based trans- veloped within MAR.TE, through the Research and port at local level and create a replicable “model” Competitiveness 2007-2013 PON: “Integrating Sea- for similar contexts in Italy. Land Logistics” and “Safety Link for Sea-Land Logis- Both projects have seen active participation from tics”. Both projects were launched in 2013 and com- Università Parthenope, CNIT (National Inter-Univer- pleted in December 2017. Through the research sity Consortium for Telecommunications), CNR (Na- project Grimaldi developed a routing system to sup- tional Research Council) and local SME. port road hauliers for defining the shortest routes in Also worthy of note is the participation in the terms of time to reach the final destination. Among “LeanShips” project, financed by European Union’s the functions of the software we can note the ability framework programme Horizon 2020 for research plan a journey, to optimise routes minimising the and innovation, which aims to demonstrate the ef- stretches of road usually subject to more accidents, fectiveness and reliability of technologies that offer to define alternative solutions in the event of acci- energy savings and emission reductions on a large dents or diversions. Another distinctive element of scale. The objective of the project is to promote the project was the creation of Port Terminal Man- technological innovation that can render existing agement (PTM), an automated system which facil- ships more efficient and less polluting. itates the main working processes that connect agency and terminal in the port of Salerno. The PTM Within the project, the Grimaldi Group works with makes it possible to manage the control activities the Dutch company Marin and the Finnish company for loading/unloading goods, the acceptance by the Wärtsilä to design and optimise Energy Saving De- terminal for bookings received by the agency, the vices (ESDs) for Car Carrier ships with variable pitch generation of online flows for confirmation of arrival propellers, in order to demonstrate potential energy and departure and the management of vehicles in savings. In particular, Marin and Wärtsilä will be re- the terminal area. The Integrating Sea/Land Logis- sponsible for designing the ESD to be installed on tics project is structured into two distinct research board a Group ship on which tests will be carried lines: Sub-areas 1 and 2. out. The objective of the work is to develop and test at a real scale innovative ESD systems capable of In the context of sub-area 1, industrial research and increasing propulsion efficiency. prototype development were carried out using management techniques based on Business Pro- The project began in June 2016 and will end in April cess Re-engineering (BPR) models, data monitoring 2019. During 2017 the ESD to be installed on board and strategic balanced scorecards. Through the one of our ships was defined after numerous trials adoption of BPR techniques, the project identified in a naval tank from which a saving emerged in concrete solutions to rationalise and restructure terms of energy and therefore of fuel consumption some of the most critical organisational/manage- of 3%. Installation of the device will be scheduled ment processes associated with logistics/port and for August 2018. freight terminal activities. Finally, the “Smart Tunnel” project developed (to-

58 2017 Sustainability Report Ch.8 - Environmental responsibility

Energy Saving Devices we develop and test at a real scale innovative ESD systems capable of increasing propulsion efficiency

gether with several universities, research centres • Service quality (improved traffic management and and companies) an intelligent logistics services plat- waiting times, rationalisation of movements of form for port cities, designed to maximize the safety people and handling of goods). and efficiency of port/back-of-port corridors (smart • Mobility management. port regionalization), as well as remotely controlling • Safety and performance (reduction of risk, reduc- smart urban freight transport. All paper documents tion of costs for safety). can be inserted into the platform in digital format, for • Environmental sustainability (reduction of acoustic and atmospheric pollution). the purpose of easily and quickly consulting them. • Energy efficiency (innovative solutions in port The project, launched in 2012, was completed in management that made it possible to improve December 2016, and enabled, at both the local and traffic planning, minimising the waiting times at the national level, the introduction of technologies anchor producing a reduction in energy demand that had a significant impact on: and polluting emissions).

8.4 Environmental performance

In order to reduce environmental impacts associated Ship CO2 emissions vs. ground transport along our routes with its activities, the Grimaldi Group constantly monitors the main negative externalities associated with its energy consumption, production of harmful emissions Kg CO2e and waste generation. Genoa-Livorno-Catania-Malta EMISSIONS 859 1,237 Maritime transport is one of the most sustainable Livorno-Savona-Valencia-Barcelona means of transport, above all when compared with 811 road transport, as has been shown in studies and 1,374 analysis done globally and at the European level. For a Salerno-Cagliari-Valencia more specific comparison, the Group has established 984 procedures able to compare the environmental impact 1,936 of short sea trailer transport on the Group’s lines and ships with respect to the same transport done on land. Grimaldi ship Euro IV Truck Over the last six years, direct emissions of CO2 per ship generated by the Group’s activities have fallen by around 9%, thanks to investments in energy and oper-

2017 Sustainability Report 59 Ch.8 - Environmental responsibility

ational efficiency projects. This trend is also confirmed 6% in the same per nautical mile. by the figures recorded in 2017 which, against an in- In order to transparently report on its environmental crease in the number of ships operated, showed the performance, also in response to increasing requests quantity of emissions per ship remained unchanged. from its customers, in 2015 and in 2016 Grimaldi In relation to other harmful emissions, starting in 2015 Euromed participated in the CDP questionnaire13, the Group began a system that carefully collects through which it made information available on the and monitors figures related to sulphur dioxide (SO2) impact its activities have on the environment, its com- emissions. mitments and the policies adopted by the Company In 2017, the Group’s activities recorded a further re- on climate change. The Company obtained a “B”, on a duction in SO2 emissions per ship of approximately scale that goes from a maximum of “A” to a minimum 3% compared to the previous year and a reduction of of “E”.

CO2/ship emissions trend (2011-2017) CO2/nautical mile emissions trend (2014-2017)

47,538 0.50

44,461 0.48 0.48 43,321 43,372 43,389 0.47 42,596 42,468

year 2011 2012 2013 2014 2015 2016 2017 year 2014 2015 2016 2017

SO2/ship emissions trend (2014-2017) SO2/nautical mile emissions trend (2014-2017) 481

0.00539 445 0.00509 0.00494 437 0.00463 432

year 2014 2015 2016 2017 year 2014 2015 2016 2017

FUEL The Bunker Department pays extremely close atten- The main energy vector used by the Group is bun- tion to containing costs and searching for new sup- kers14 acquired to supply ships. pliers in the destination markets for ships, in order During 2017, the quantity of fuel acquired increased to obtain the best possible conditions, while also by 4% compared to 2016, mainly due to an increase monitoring product quality and carefully managing in active ships during the year of 4% and an increase any problems that may arise during ship refuelling in the number of nautical miles travelled of 8%. activities.

Fuel used (tonnes) Type* 2011 2012 2013 2014 2015 2016 2017 HFO (mt) 851,083 815,040 754,077 746,188 967,703 1,113,224 1,191,017 LFO (mt) 558,857 536,479 604,780 566,767 207,741 209,371 225,545 MGO (mt) 91,755 96,655 95,300 99,757 308,147 265,843 238,608 Total 1,501,695 1,448,174 1,454,157 1,412,712 1,483,591 1,588,438 1,655,170 Ships operated 99 102 107 104 107 115 120

* HFO: Heavy Fuel Oil; LFO: Light Fuel Oil; MGO: Marine Gas Oil

13)The Carbon Disclosure Project (CDP) is a non-profit organisation that offers countries and companies a system to measure, identify, manage and share climate change information at a global level. 14) Fuel oil used to power ship movement.

60 2017 Sustainability Report Ch.8 - Environmental responsibility

HFO (mt) Finally, with regards to waste, the Group promotes the use of on-board incinerators with the aim of re- LFO (mt) Fuel type ducing the amount of solid waste unloaded while in MGO (mt) port, obviously in full compliance with limits/restric- tions established in the current regulations. 14% Around 8% of biodegradable waste produced during the year is disposed of at sea. 72% WATER On 8 September 2017 the Ballast Water Manage- 14% ment (BWM) Convention came into force. This IMO international convention controls the management of ballast water and sediments. The purpose of the Convention is to minimise and ultimately eliminate transmigration, through the said ballast water, of harmful aquatic micro-organisms and pathogens Bunkering activities are performed observing the from one area to another of the planet, a phenom- current regulations. During the said operations au- enon that damages the environment, human health, dits and controls can be carried out by the port au- biodiversity and the various industries involved thority in the fields of safety and the environment. (fishing, agriculture, tourism). In order to ensure the least environmental impact With entry into force of the BWM Convention, ships possible, in the case of fuel spills at sea, the Group must have ballast water loaded on board subject to immediately activates an emergency protocol. A the mechanical, physical, chemical, biological pro- company crisis management group meets and the cesses, singularly or jointly, approved by the reg- procedures established in existing plans are imple- ulations such as treatments based on UV, ozone, mented (e.g. SOPE - Ship Oil Pollution Emergency sodium hypochlorite, inert gas or simply reflux. - Plan, Vessel Response Plan). The crisis manage- In order to comply with this Convention, the Group ment group consists of the managers of the fleet prepared management plans and manuals with the operating offices and has the task of coordinating related mitigation procedures for existing ships, all the targeted actions aimed at minimising impacts while on board new ships under construction the as much as possible, as well as providing assis- installation of modern ballast water treatment sys- tance to the ship by working with any third parties tems has begun, which meet the technical specifi- involved (e.g. local authorities, action/containment cations outlined by the IMO. companies, insurers, tugboats, classification enti- Currently Ballast Water Treatment systems are in- ties, flag authorities, etc.). stalled on 14 ships and will gradually be installed on WASTE all ships that come into dry dock.

Waste, 2017 Waste disposal methods, 2017 5% 1% 29% 9% Bilge water Sludge Disposal at sea

10% Domestic waste Offloaded on land/ Plastic incinerated on board 8% Food waste 92% Operating waste Freight residue 20% Other 26%

2017 Sustainability Report 61 9 Objectives

he main objective of the Grimaldi Group is to pursue continual improvement so as to be able to guar- Tantee to its customers the maximum efficiency in all aspects of travel, as regards both logistics and the practical aspects. For this reason the Group continues to set itself ambitious objectives to be achieved in the short and medium term.

Activity implemented Activity in course Activity not begun

Area of Objective commitment Action Reduction of Energy efficiency and • Installation of new exhaust gas treatment systems environmental reduction of emissions impacts • Installation of waste heat recovery systems • Use of lithium batteries which store energy at sea to be later used in port, reducing emissions to zero during stopovers • Implementation of renewable energy systems on board ships Environmental Extend the environmental Define a Group environmental policy management management system to system all the Group’s shipping companies Updating the Quality Review, approval and distribution of the new Quality and and Environmental Environmental Manual compliant with ISO9001:2015 and Manual to ISO9001:2015 ISO 14001:2015 norms and ISO14001:2015 certifications Train maritime Retention policy for • Carry out development plans for ground positions personnel Officials and crew growth and development • Restructure the entire training programme along officers’ entire career • Involve specialised trainers and seniors staff with a professional on board background

62 2017 Sustainability Report Ch.9 - Objectives

Service quality Increase customer • Working with the IT department, develop a data ware- satisfaction levels and continue monitoring house system to collect and analyse passenger data work performance for (quantitative and qualitative) maritime personnel on- board, as well as that • Constantly analyse and monitor Call Center perfor- of the suppliers of on mance board service, in order to increase user satisfaction • Analyse the feasibility of a customer loyalty programme and increase loyalty. • Keep internal and external work procedures up to date, to increase the efficiency of services offered, including providing training updates to department staff and pe- ripheral offices • Constantly monitor department and partner performance, ensuring productive standards are always satisfactory Management of Improve and increase • Gradually transfer all Grimaldi Euromed owned ships security during efficiency in Group at sea operations performance. managed under ISM, with the Euromed DOC and pollution prevention • Revise/improve circulars/instructions issued by the CSO (Company Security Officer) and the DPA (Designated Person Ashore) • Revise/approve/distribute the Grimaldi Deep Sea SMS manual, introducing certain changes in the organisational structure and new amendments and regulatory requirements • Establish an internal working group between the Safety, Quality and Environment Department and the commercial offices of Naples and London to optimise/reduce the number of operating instructions for ro/ro transport • Introduce Italian as the working language on-board ships with Italian crews (preparation of plans, manuals, etc.) • Complete the transfer of all Grimaldi Euromed-owned ships managed under ISM, with the Euromed DOC • Revision of the SMS manuals of the two companies managed under ISM • Revision/optimisation of the collections of work circulars/instructions • Preparation of the documentation and immediate implementation of the management systems on board new vessels under construction in Chinese shipyards, expected to be introduced into the fleet in 2018

2017 Sustainability Report 63 10 Commitment List

esides the projects carried out in the last few years the Group is committed to developing a long-term Bview where the objectives set incarnate the corporate vision and ambitions. In this way the Group stimu- lates all its workers to continual improvement for the achievement of common and shared objectives.

AREA OF COMMITMENT OBJECTIVE ACTION THE GRIMALDI Provide a contribution to young people in Grants to non-profit entities for meritorious projects in support of own FOUNDATION disadvantaged groups especially in the Naples initiatives of young people and their families in the Naples area ONLUS area Alleviate situations of great family difficulty of Grants to families of collaborators, in proportion to their real needs seafarers and collaborators of the fleet, with young children, in a condition of need Counter social difficulty through support to the Management on its own and in partnerships of projects in favour of family model and income parents, old people and children of disadvantage family units CUSTOMERS Keep competitiveness high with competition in Constant optimisation of the tariff policy to improve volumes and terms of prices accessible to customers loading ratios of ships with adequate yield and offer to the market always new winning offers/promotions Improve the user experience (b2c/b2b) of Study a travel experience that is satisfactory for customers in every customers and aim at increasing their loyalty moment: starting from welcoming passengers in ticket offices, at the with specific commercial initiatives and social fast check-in stage, with expansion of the offer of on-board services, activities up to the creation of a collaboration with the Hotel & Customer Department SAFETY, QUALITY Develop cooperative and open relationships Improvement of crew selection and recruitment procedures AND THE with PSC organisations ENVIRONMENT Increase monitoring of on-board risks Improvement of ship technical inspection protocols

Reduce the number of deficiencies found in Introduction of a training course for chief mates on the subject of PSC inspections safety in the workplace Improvement of the performance of ships Organise visits to the headquarters of the PSCs of Northern Europe and with the High Command of Harbour Offices Establishment of a multi-departmental work Establish a protocol with greater detail/frequency on the subject of group to study and implement the operating assessing the performance of captains and chief engineers improvement actions introduced by the Improvement of ship procurement management procedures strategic action plan approved by the DPA Introduction of a check list for self-audits by crews (routine inspections) Improvement of on-board safety culture

Improvement of procedures for ship and communication channel maintenance PURCHASES Reduce the environmental impact of ships Together with the Energy Saving Department, identify solutions and by purchasing products that increase their supplies that can reduce the environmental impact of fleet ships environmental performance Digitalisation of the procurement process Launch of a study aimed at computerising the entire process of issuing purchase orders. COMMUNICATION Promote Corporate Social Responsibility within Develop activities carried out in the environmental, training and social the Group sectors. Increase the degree of customer satisfaction Continue investments in digital communication: complete the and try to increase their loyalty. development of the new grimaldi-lines.com website, to further improve the booking service (B2C/B2B)

64 2017 Sustainability Report Annex Annex Annex

Materiality Analysis Process

In particular, the materiality analysis process involved three main steps:

2 3 1 Categorisation Definition of Preliminary analysis and prioritisation materiality matrix

Step 1 - Preliminary Analysis

During the first step, a list of material issues was drawn up, through analysis of issues relevant to the sector (examination of documents for the Shipping and Logistics sector, GRI Sustainability Topics for Sectors, SASB), benchmark analysis with comparable companies, analysis of press materials (more than 5,000 articles analysed starting from January 2017), and analysis of Group documents (Code of Conduct, 231 Model, procedures, integrated management system, etc.).

Step 2 - Categorisation and prioritisation

During the second step, the issues identified were shared with Group management and company employees involved in the process of preparing the Sustainability Report, through a dedicated workshop. Prioritisation of issues material to the Group was done using different methods for the internal view and for external stakeholders. Specifically, for the internal view, meetings were held with Group management to determine the importance and appropriateness over the long term for each issue identified. External stakeholders’ point of view was determined by considering the aggregate results of the benchmark analysis, media analysis and sector documentation. Points were assigned by considering how many times an issue appeared in the documents analysed and on the basis of qualitative assessments.

Step 3 - Definition of the materiality matrix

The results of the materiality analysis process were summarised in the materiality matrix (page 23 of this document) and in the table reported below, which compares the aspects of the GRI Sustainability Reporting Guidelines and the issues considered material to the Grimaldi Group.

65 AnnAnnexex

Reconciliation table for material issues and GRI G4 indexes Selected GRI Internal External GRI Aspects indexes Material issue impact impact Innovation and sustainable Economic performance DMA, EC1 development √ √ Investment in the community

Economic Procurement policies DMA, EC9 Supply chain √ Energy DMA, EN3 Energy efficiency √ Emissions EN15, EN21 Emissions √ Exhaust and waste EN23 Environment Waste √ Employment LA1, LA3 Focus on people √ Workplace health and safety LA5, LA6 Health and safety √

Social Training and education LA9 Valorisation of Human Resources √ Diversity and equal opportunity LA12 Valorisation of Human Resources √ Anti-corruption SO5 Business Ethics √ √ Anti-competitive behaviour SO7 Business Ethics √ √

Company Compliance SO8 Business Ethics √

Products and services PR5 Customer focus √ liability Product

The reporting perimeter

Economic/ The perimeter corresponds to that of the Consolidated Financial Statements at 31 December financial data 2017.

In order to provide a more complete picture of data on the personnel, starting from the 2016 edition of the Report, the perimeter of the data comprises not only the companies included in the 2017 Consolidated Financial Statements, but also fourteen companies controlled by the Group outside the consolidation scope. Specifically: the perimeter considers the staff of the following companies: Grimaldi Group SpA, Grimaldi Euromed SpA, Grimaldi Deep Sea SpA, Finnlines Plc and subsidiaries, Atlantic Container Line AB and subsidiaries, Minoan Lines SA, Malta Motorways of the Sea Ltd, Ports and Terminal Multiservices Ltd, Grimaldi Agencies UK, Grimaldi Logistica Espana SL, Grimaldi Maritime Agencies Sweden AB, Valencia Terminal Europa SL, Scandinavian Auto Logistics A/S, Euro-Med Ireland Logistics Ltd, Grimaldi Germany GmbH, Grimaldi Belgium NV, CETAL Personnel data Srl, Antwerp Euroterminal NV, Wallhamn AB, Grimaldi Terminal Barcelona SL, Grimaldi Benin SA, Grimaldi Sardegna Srl, Antwerp Lashing & Securing NV, Grimaldi Portugal Lda, Michele Autuori Srl, Grimaldi Togo SA, Socomar SA, Grimaldi Senegal SA, Grimaldi Nigeria Ltd, Grimaldi Compagnia di Navigazione do Brasil Ltda, Grimaldi Ghana Ltd, Grimaldi Terminal Euro/Med SCpA, Grimaldi Catania Srl, Grimaldi Tour Operador Espana SA, Marittima Spedizioni Srl, Savona Terminal Auto Srl, Grimaldi Marangolo Terminal Catania Srl, Antwerp Container Repair NV, Grimaldi Logistica Genova Srl and Ghianda LV. The companies in the Group that employ both shore and maritime personnel are the following: Grimaldi Group SpA, Grimaldi Deep Sea SpA, Grimaldi Euromed SpA, Finnlines Plc, Atlantic Container Line AB, Minoan Lines SA and Malta Motorways of the Sea Ltd. The remaining companies employ only shore personnel.

66 2017 Sustainability AnnexReport

GRI indexes The tables below present data for the principal indicators regarding the Grimaldi Group’s personnel and environmental impact. Personnel indexes It should be noted that in order to represent as well as possible the specific nature of the sector and give an appropriate picture of the employment impact of the Group, data regarding maritime personnel numbers refer to work positions active in 2017. In fact, as highlighted in the “Fifth Report on the Maritime Economy – Maritime cluster and development in Italy”15, due to the special nature of maritime work, the number of employees are lower than the number of positions because of the effect of the shift system worked by employees as sea. The other indicators, unless otherwise specified, represent the situation on 31 December 2017 as provided for in the “G4 Sustainability Reporting Guidelines”. TOTAL GROUP PERSONNEL U.M. 2017 2016 2015 Shore personnel N° 5,558 5,328 5,386 EU N° 4,305 4,065 nd Extra EU/Rest of the world N° 1,253 1,263 nd Maritime personnel N° 9,248 9,399 8,992 EU N° 7,050 7,096 nd Extra EU/Rest of the world N° 2,198 2,303 nd Total N° 14,806 14,727 14,378 TOTAL GROUP PERSONNEL U.M. 2017 2016 2015 Shore personnel N° 5,558 5,328 5,386 Men N° 4,297 4,133 4,118 Women N° 1,261 1,195 1,268 Maritime personnel N° 9,248 9,399 8,992 Men N° 8,818 8,948 nd Women N° 430 451 nd Total N° 14,806 14,727 14,378 G4-10 SHORE PERSONNEL, BY GENDER U.M. 2017 2016 2015 Men N° 2,739 2,593 3,715 Women N° 1,132 1,073 1,073 Total N° 3,871 3,666 4,788 SHORE PERSONNEL UNDER CONTRACT, BY GENDER16 2017 2016 2015 Men N° 1,558 1,540 403 Women N° 129 122 195 Total N° 1,687 1,662 598 MARITIME PERSONNEL, BY GENDER U.M. 2017 2016 2015 Men N° 5,570 5,660 nd Women N° 330 338 nd Total N° 5,900 5,998 nd DIRECTLY EMPLOYED MARITIME PERSONNEL, BY GENDER 2017 2016 2015 Men N° 3,248 3,288 nd Women N° 100 113 nd Total N° 3,348 3,401 nd LAND PERSONNEL, BY CONTRACT TYPE U.M. 2017 2016 2015 PERMANENT CONTRACTS N° 3,591 3,485 4,630 Men N° 2,536 2,462 3,605 Women N° 1,055 1,023 1,025 FIXED TERM CONTRACTS N° 280 181 158 Men N° 202 131 108 Women N° 78 50 50 Total N° 3,871 3,666 4,788

15) Centro Studi Investimenti Sociali (Centre for Research into Social Investment) - CENSIS- on behalf of Federazione del Mare (Italian Mariti- me Federation). 16) 2015 data net of terminal operators. 67 AnnAnnexex

PERMANENT PERSONNEL ASHORE, BY GENDER AND TYPE OF WORK U.M. 2017 2016 2015 FULL-TIME N° 3,428 3,323 4,511 Men N° 2,503 2,432 3,586 Women N° 925 891 925 PART-TIME N° 163 162 119 Men N° 34 29 18 Women N° 129 133 101 Total N° 3,591 3,485 4,630

MARITIME PERSONNEL, BY CONTRACT TYPE U,M, 2017 2016 2015 PERMANENT CONTRACTS N° 791 835 nd Men N° 652 699 nd Women N° 139 136 nd FIXED TERM CONTRACTS N° 5,109 5,163 nd Men N° 4,918 4,961 nd Women N° 191 202 nd Total N° 5,900 5,998 nd

PERMANENT MARITIME PERSONNEL, BY GENDER AND TYPE OF WORK17 U.M. 2017 2016 2015 FULL-TIME N° 672 691 nd Men N° 536 560 nd Women N° 136 131 nd PART-TIME N° 0 0 nd Men N° 0 0 nd Women N° 0 0 nd Total N° 672 691 nd

SHORE PERSONNEL, BY GEOGRAPHICAL AREA AND GENDER U,M, 2017 2016 2015 ITALY N° 885 717 nd Men N° 672 533 nd Women N° 213 184 nd SPAIN N° 142 128 nd Men N° 98 87 nd Women N° 44 41 nd GREECE N° 143 146 nd Men N° 70 74 nd Women N° 73 72 nd FINLAND N° 486 494 nd Men N° 353 355 nd Women N° 133 139 nd SWEDEN N° 280 268 nd Men N° 174 176 nd Women N° 106 92 nd UNITED KINGDOM N° 246 224 nd Men N° 140 133 nd Women N° 106 91 nd MALTA N° 3 3 nd Men N° 2 2 nd Women N° 1 1 nd GERMANY N° 204 204 nd Men N° 99 106 nd Women N° 105 98 nd BELGIUM N° 322 315 nd Men N° 201 198 nd Women N° 105 117 nd OTHER COUNTRIES N° 1,160 1,167 nd Men N° 930 929 nd Women N° 230 238 nd Total N° 3,871 3,666 nd

17) The reporting perimeter covers 85% in 2017 and 83% in 2016.

68 2017 Sustainability AnnexReport

SUBORDINATED SHORE PERSONNEL BY GEOGRAPHICAL AREA AND GENDER U.M. 2017 2016 2015 ITALY N° 5 6 nd Men N° 4 6 nd Women N° 1 0 nd SPAIN N° 17 16 nd Men N° 15 14 nd Women N° 2 2 nd GREECE N° 1 0 nd Men N° 1 0 nd Women N° 0 0 nd FINLAND N° 1 0 nd Men N° 0 0 nd Women N° 1 0 nd SWEDEN N° 18 19 nd Men N° 7 7 nd Women N° 11 12 nd UNITED KINGDOM N° 35 0 nd Men N° 21 0 nd Women N° 14 0 nd GERMANY N° 1 0 nd Men N° 1 0 nd Women N° 0 0 nd BELGIUM N° 1,496 1,521 nd Men N° 1,425 1,431 nd Women N° 71 90 nd OTHER COUNTRIES N° 113 100 nd Men N° 84 82 nd Women N° 29 18 nd Total N° 1,687 1,662 nd

MARITIME PERSONNEL, BY GEOGRAPHICAL AREA AND GENDER U.M. 2017 2016 2015 ITALY N° 4,581 4,602 nd Men N° 4,450 4,475 nd Women N° 131 127 nd GREECE N° 433 462 nd Men N° 401 425 nd Women N° 32 37 nd FINLAND N° 573 600 nd Men N° 480 509 nd Women N° 93 91 nd SWEDEN N° 313 334 nd Men N° 239 251 nd Women N° 74 83 nd Total N° 5,900 5,998 nd

SUBORDINATED MARITIME PERSONNEL, BY GEOGRAPHICAL AREA AND GENDER U.M. 2017 2016 2015 GREECE N° 516 485 nd Men N° 476 447 nd Women N° 40 38 nd MALTA N° 7 0 nd Men N° 5 0 nd Women N° 2 0 nd OTHER COUNTRIES N° 2,825 2,916 nd Men N° 2,767 2,841 nd Women N° 58 75 nd Total N° 3,348 3,401 nd

69 AnnAnnexex

G4-11

COLLECTIVE CONTRACT, SHORE PERSONNEL U.M. 2017 2016 2015 Shore personnel covered by collective contract agreements % 86 85 81

COLLECTIVE CONTRACT, MARITIME PERSONNEL U.M. 2017 2016 2015 Maritime personnel covered by collective contract % 100 100 nd agreements

G4-LA12

SHORE PERSONNEL, BY PROFESSIONAL CATEGORY AND GENDER18 U.M. 2017 2016 2015 MANAGERS N° 277 275 259 Men N° 236 232 218 Men % 85 84 84 Women N° 41 43 41 Women % 15 16 16 EXECUTIVES N° 358 419 421 Men N° 276 335 332 Men % 77 80 79 Women N° 82 84 89 Women % 23 20 21 EMPLOYEES N° 2,406 2,334 4,10819 Men N° 1,488 1,438 3,165 Men % 62 62 77 Women N° 918 896 943 Women % 38 38 23 WORKERS N° 728 638 nd Men N° 663 588 nd Men % 91 92 nd Women N° 65 50 nd Women % 9 8 nd Total N° 3,769 3,666 4,788

SHORE PERSONNEL, BY AGE AND PROFESSIONAL CATEGORY20 U.M. 2017 2016 2015 <30 YEARS N° 458 426 381 Managers N° 5 4 2 Managers % 1 1 1 Executives N° 9 12 15 Executives % 2 3 4 Employees N° 328 350 364 Employees % 72 82 95 Workers N° 116 60 nd Workers % 25 14 nd 30-50 YEARS N° 2,320 2,302 2,219 Managers N° 140 137 129 Managers % 6 6 6 Executives N° 207 247 276 Executives % 9 11 12 Employees N° 1,579 1,512 1,814 Employees % 68 65 82 Workers N° 394 406 nd Workers % 17 18 nd >50 YEARS N° 991 884 829 Managers N° 133 134 122 Managers % 13 15 15 Executives N° 142 119 97

18) The reporting perimeter covers 97% in 2017. 19) Figure including manual workers. 20) The reporting perimeter covers 97% in 2017, 99% in 2016 and 72% in 2015. 70 2017 Sustainability AnnexReport

SHORE PERSONNEL, BY AGE AND PROFESSIONAL CATEGORY20 U.M. 2017 2016 2015 Executives % 14 14 12 Employees N° 498 451 610 Employees % 50 51 73 Workers N° 218 180 nd Workers % 22 20 nd Total N° 3,769 3,612 3,429

MARITIME PERSONNEL, BY PROFESSIONAL CATEGORY AND GENDER U.M. 2017 2016 2015 OFFICERS N° 2,341 2,395 nd Men N° 2,252 2,306 nd Men % 96 96 nd Women N° 89 89 nd Women % 4 4 nd PETTY OFFICERS N° 774 813 nd Men N° 757 792 nd Men % 98 97 nd Women N° 17 21 nd Women % 2 3 nd ORDINARY SAILORS N° 2,785 2,790 nd Men N° 2,561 2,562 nd Men % 92 92 nd Women N° 224 228 nd Women % 8 8 nd Total N° 5,900 5,998 nd

MARITIME PERSONNEL, BY AGE AND PROFESSIONAL CATEGORY U.M. 2017 2016 2015 <30 YEARS N° 1,900 1,863 nd Officers N° 987 986 nd Officers % 52 53 nd Petty officers N° 40 50 nd Petty officers % 2 3 nd Ordinary sailors N° 873 827 nd Ordinary sailors % 46 44 nd 30-50 YEARS N° 2,688 2,805 nd Officers N° 894 945 nd Officers % 33 34 nd Petty officers N° 377 403 nd Petty officers % 14 14 nd Ordinary sailors N° 1,417 1,457 nd Ordinary sailors % 53 52 nd >50 YEARS N° 1,312 1,330 nd Officers N° 460 464 nd Officers % 35 35 nd Petty officers N° 357 360 nd Petty officers % 27 27 nd Ordinary sailors N° 495 506 nd Ordinary sailors % 38 38 nd Total N° 5,900 5,998 nd

GRIMALDI GROUP SPA BOARD OF DIRECTORS, BY GENDER U.M. 2017 2016 2015 Men N° 4 4 4 Men % 100 100 100 GRIMALDI GROUP SPA BOARD OF DIRECTORS, BY AGE U.M. 2017 2016 2015 >50 years N° 4 4 4 >50 years % 100 100 100

71 AnnAnnexex

G4-LA1 Hiring

SHORE PERSONNEL - HIRES BY GENDER U.M. 2017 201621 2015 Men N° 521 426 337 Men % 75 74 67 Women N° 174 148 165 Women % 25 26 33 Total N° 695 574 502 SHORE PERSONNEL - HIRES BY AGE U.M. 2017 2016 2015 <30 years N° 223 137 251 <30 years % 32 24 50 30-50 years N° 372 349 208 30-50 years % 54 60 41 >50 years N° 100 88 43 >50 years % 14 15 9 Total N° 695 574 502 SHORE PERSONNEL - HIRES BY GEOGRAPHICAL AREA U.M. 2017 2016 2015 Italy N° 190 151 89 Italy % 27 26 18 Spain N° 23 21 11 Spain % 3 3 2 Greece N° 5 3 37 Greece % 1 1 7 Finland N° 74 48 62 Finland % 11 8 12 Sweden N° 21 14 121 Sweden % 3 2 24 United Kingdom N° 40 17 44 United Kingdom % 6 3 9 Malta N° 0 0 0 Malta % 0 0 0 Germany N° 22 10 9 Germany % 3 2 2 Belgium N° 40 37 35 Belgium % 6 6 7 Other countries N° 280 273 94 Other countries % 40 48 19 Total N° 695 574 502

MARITIME PERSONNEL - HIRES BY GENDER U.M. 2017 2016 2015 Men N° 4,878 4,834 nd Men % 96 96 nd Women N° 215 219 nd Women % 4 4 nd Total N° 5,093 5,053 nd MARITIME PERSONNEL - HIRES BY AGE U.M. 2017 2016 2015 <30 years N° 1,878 1,840 nd <30 years % 37 36 nd 30-50 years N° 2,196 2,200 nd 30-50 years % 43 44 nd >50 years N° 1,019 1,013 nd >50 years % 20 20 nd Total N° 5,093 5,053 nd

21) The adjustment to the 2016 figures is due to the addition of some numbers which were omitted in the previous year.

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MARITIME PERSONNEL - HIRES BY GEOGRAPHICAL AREA U.M. 2017 2016 2015 Italy N° 4,581 4,609 nd Italy % 90 91 nd Spain N° 0 0 nd Spain % 0 0 nd Greece N° 64 37 nd Greece % 1 1 nd Finland N° 304 312 nd Finland % 6 6 nd Sweden N° 144 93 nd Sweden % 3 2 nd United Kingdom N° 0 0 nd United Kingdom % 0 0 nd Malta N° 0 0 nd Malta % 0 0 nd Germany N° 0 0 nd Germany % 0 0 nd Belgium N° 0 0 nd Belgium % 0 0 nd Other countries N° 0 2 nd Other countries % 0 0 nd Total N° 5,093 5,053 nd

G4-LA1 Turnover SHORE PERSONNEL - TERMINATIONS BY GENDER22 U.M. 2017 2016 2015 Men N° 250 281 516 Men % 68 73 81 Women N° 117 104 124 Women % 32 27 19 Total N° 367 385 640 SHORE PERSONNEL - TERMINATIONS BY AGE22 U.M. 2017 2016 2015 <30 years N° 107 104 184 <30 years % 29 27 29 30-50 years N° 175 214 335 30-50 years % 48 56 52 >50 years N° 85 67 121 >50 years % 23 17 19 Total N° 367 385 640 SHORE PERSONNEL - TERMINATIONS BY GEOGRAPHICAL AREA22 U.M. 2017 2016 2015 Italy N° 98 59 30 Italy % 27 16 5 Spain N° 1 2 3 Spain % 0 1 1 Greece N° 6 4 61 Greece % 2 1 10 Finland N° 78 54 102 Finland % 21 14 16 Sweden N° 36 28 113 Sweden % 10 7 17 United Kingdom N° 28 22 13 United Kingdom % 8 6 2 Malta N° 0 0 0 Malta % 0 0 0 Germany N° 22 9 18 Germany % 6 2 3 Belgium N° 32 29 22 Belgium % 9 7 3 Other countries N° 65 178 278 Other countries % 18 46 43 Total N° 367 385 640 22) the reporting perimeter covers 98% for 2017.

73 AnnAnnexex

MARITIME PERSONNEL - TERMINATIONS BY GENDER U.M. 2017 2016 2015 Men N° 376 401 nd Men % 70 81 nd Women N° 159 92 nd Women % 30 19 nd Total N° 535 493 nd MARITIME PERSONNEL - TERMINATIONS BY AGE U.M. 2017 2016 2015 <30 years N° 220 196 nd <30 years % 41 40 nd 30-50 years N° 211 220 nd 30-50 years % 39 44 nd >50 years N° 104 77 nd >50 years % 19 16 nd Total N° 535 493 nd MARITIME PERSONNEL - TERMINATIONS BY GEOGRAPHICAL AREA U.M. 2017 2016 2015 Italy N° 53 101 nd Italy % 10 20 nd Spain N° 0 0 nd Spain % 0 0 nd Greece N° 76 97 nd Greece % 14 20 nd Finland N° 241 209 nd Finland % 45 42 nd Sweden N° 165 84 nd Sweden % 31 17 nd United Kingdom N° 0 0 nd United Kingdom % 0 0 nd Malta N° 0 0 nd Malta % 0 0 nd Germany N° 0 0 nd Germany % 0 0 nd Belgium N° 0 0 nd Belgium % 0 0 nd Other countries N° 0 2 nd Other countries % 0 1 nd Total N° 535 493 nd

G4-LA323

SHORE PERSONNEL WITH THE RIGHT TO PARENTAL LEAVE U.M. 2017 2016 2015 Men N° 1,059 1,175 1,883 Women N° 570 593 771 Total N° 1,629 1,768 2,654 SHORE PERSONNEL WHO USED PARENTAL LEAVE U.M. 2017 2016 2015 Men N° 83 59 103 Women N° 91 85 98 Total N° 174 144 201 SHORE PERSONNEL RETURNING TO WORK AFTER PARENTAL LEAVE U.M. 2017 2016 2015 Men N° 81 56 100 Women N° 64 65 75 Total N° 145 121 175 SHORE PERSONNEL RETURNING TO WORK AFTER PARENTAL LEAVE, STILL EMPLOYED 12 MONTHS AFTER RETURN U.M. 2017 2016 2015 Men N° 49 65 99 Women N° 35 54 72 Total N° 84 119 171

23) The reporting perimeter covers 92% in 2017, 94% in 2016 and 99% in 2015.

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PARENTAL LEAVE RETURN RATE24 OF SHORE PERSONNEL U.M. 2017 2016 2015 Men % 245 106 101 Women % 178 103 108 Total % 210 104 104 PARENTAL LEAVE RETENTION RATE24 OF SHORE PERSONNEL U.M. 2017 2016 2015 Men % 88 65 108 Women % 54 85 nd Total % 69 87 nd

G4-LA5 SHORE PERSONNEL REPRESENTED ON HEALTH AND SAFETY COMMITTEES 25 U.M. 2017 2016 2015 Percentage of employees represented on health and safety % 21 22 22 committees MARITIME PERSONNEL REPRESENTED ON HEALTH AND SAFETY COMMITTEES 26 U.M. 2017 2016 2015 Percentage of employees represented on health and safety % 15 16 nd committees

G4-LA6

SHORE PERSONNEL27 - INJURY RATE (IR) 28 U.M. 2017 2016 2015 Italy i 1.99 2.27 0.64 Men i 2.46 2.68 0.82 Women i 0.52 1.10 0 Spain i 3.59 6.69 2.64 Men i 5.27 9 3.85 Women i 0.00 2.47 0 Finland29 i 4.22 8.69 8.25 Men i 5.55 11.87 10.92 Women i 0.00 0.00 0.82 Sweden30 i 10.72 0.00 0.00 Men i 11.97 0.00 0.00 Women i 8.45 0.00 0.00 United Kingdom i 0.00 0.98 2.99 Men i 0.00 1.64 0 Women i 0.00 0.00 7.56 Germany i 1.75 0.57 0.00 Men i 3.22 0.00 0 Women i 0.00 1.24 0 Belgium i 4.39 6.04 0 Men i 6.23 8.48 0 Women i 0.00 1.27 0 Other countries i 0.18 0.43 0.29 Men i 0.11 0.41 0.33 Women i 0.49 0.53 0.00 Total i 2.35 2.52 1.90 Men i 2.87 3.21 2.49 Women i 0.95 0.65 0.29 24) The rate is calculated as the ratio between the number of employees employed at the end of the year after 12 months following the return from leave and the number of employees returning from leave in the previous year. In order to make the data comparable, the 2017 rates were calculated aligning the reporting perimeter of the number of employees returning from leave in 2016 to the 2017 perimeter. The net increase recorded in 2017 is due to the fact that in Finnlines male personnel usually take parental leave for short periods (from a few weeks to a month) and therefore return within the same year. In addition for 2017 Finnlines included in the calculation of parental leave absences related to caring for ill children. Therefore, the number of employees who took parental leave and the number of employees who returned to work are higher than in previous years. 25) The reporting perimeter covers 96% for 2017 26) The reporting perimeter covers 15% 27) The reporting perimeter covers 93% for 2017, 99% in 2016 and 85% in 2015 28) IR = (total injuries/total hours worked) x 200,000. 29) The change between 2016 and 2017 derives mainly from a halving of the number of injuries 30) The change between 2016 and 2017 derives mainly from an increase in the number of injuries. 75 AnnAnnexex

MARITIME PERSONNEL - INJURY RATE (TI) U.M. 2017 2016 2015 Italy i 2.88 3.44 1.47 Men i 2.90 3.53 1.50 Women i 2.15 0.00 0.00 Greece i 1.07 0.85 0.75 Men i 1.16 0.46 0.77 Women i 0.00 6.00 0.00 Finland i 2.85 3.09 10.85 Men i 2.14 2.05 10.66 Women i 6.69 8.11 11.69 Sweden i 0.77 0.76 7.03 Men i 0.51 0.00 7.98 Women i 1.56 3.28 4.18 Other countries i 0.97 0.00 2.04 Men i 0.98 0.00 1.87 Women i 0.00 0.00 7.88 Total i 1.93 2.90 2.61 Men i 1.85 2.70 2.44 Women i 3.29 5.22 5.68

SHORE PERSONNEL31 - OCCUPATIONAL ILLNESS RATE (OIR)32 U.M. 2017 2016 2015 Spain i 0.00 0.77 1.76 Men i 0.00 1.13 2.57 Women i 0.00 0.00 0.00 Sweden i 0.86 0.00 1.22 Men i 0.00 0.00 0.00 Women i 2.41 0.00 2.48 United Kingdom i 2.20 0.49 0.00 Men i 3.64 0.00 0.00 Women i 0.00 1.23 0.00 Germany i 0.58 0.00 0.00 Men i 1.07 0.00 0.00 Women i 0.00 0.00 0.00 Belgium i 0.00 0.43 0.00 Men i 0.00 0.65 0.00 Women i 0.00 0.00 0.00 Other countries i 0.27 0.26 0.00 Men i 0.34 0.10 0.00 Women i 0.00 1.05 0.00 Total i 0.28 0.17 0.12 Men i 0.31 0.12 0.11 Women i 0.21 0.32 0.15

MARITIME PERSONNEL - OCCUPATIONAL ILLNESS RATE (OIR) U.M. 2017 2016 2015 Italy i 8.54 10.09 0.00 Men i 8.49 10.22 0.00 Women33 i 10.75 4.83 0.00 Greece i 2.67 3.40 2.26 Men i 2.61 3.66 2.16 Women34 i 3.33 0.00 5.60 Sweden i 0.00 0.00 0.26 Men i 0.00 0.00 0.00 Women i 0.00 0.00 1.05

31) The reporting perimeter covers 93% for 2017, 99% in 2016 and 85% in 2015. 32) OIR= (total cases of occupational illness/total hours worked) x 200,000. Occupational illnesses refer to pathologies which workers contract in doing their work, due to the presence of factors in the environment in which they work. 33) The change between 2017 and 2016 derives mainly from an increase in the hours worked and in number of injuries 34) The change between 2017 and 2016 derives mainly from an increase in the hours worked and in number of injuries 35) The change between 2017 and 2016 derives mainly from an increase in the hours worked and in number of injuries.

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MARITIME PERSONNEL - OCCUPATIONAL ILLNESS RATE (OIR) U.M. 2017 2016 2015 Other countrie35 i 1.36 0.00 0.04 Men i 1.33 0.00 0.05 Women i 3.63 0.00 0.00 Total i 4.48 6.33 0.24 Men i 4.49 6.80 0.22 Women i 4.16 0.87 0.54

SHORE PERSONNEL36- SEVERITY INDEX (SI)37 U.M. 2017 2016 2015 Italy I 56.83 55.49 21.95 Men I 73.97 71.56 28.34 Women I 2.59 9.34 0.00 Spai38 I 81.85 67.27 35.18 Men I 120.09 97.92 51.35 Women I 0.00 0.00 0.00 Finland I 62.45 109.38 15.62 Men I 82.08 149.20 20.65 Women I 0.00 0.00 1.64 Sweden39 I 78.88 13.18 0.00 Men I 21.27 12.07 0.00 Women I 183.49 15.36 0.00 United Kingdom40 I 67.22 14.24 158.00 Men I 111.08 23.76 0.00 Women I 0.00 0.00 400.00 Germany I 16.36 24.92 0.00 Men I 25.73 0.00 0.00 Women i 5.13 54.43 0.00 Belgium i 57.11 58.19 0.00 Men i 80.99 61.35 0.00 Women i 0.00 52.05 0.00 Other countries i 24.29 32.01 25.00 Men i 29.84 28.73 28.71 Women i 0.00 48.86 0.00 Total i 45.96 46.07 18.79 Men i 56.56 54.86 22.77 Women i 17.02 22.18 8.06

MARITIME PERSONNEL - SEVERITY INDEX (SI) U.M. 2017 2016 2015 Greece i 66.40 95.17 30.24 Men i 72.19 96.48 31.07 Women i 0.00 77.94 0.00 Finland i 69.04 81.03 182.46 Men i 59.46 71.32 216.05 Women i 120.51 127.90 32.14 Sweden41 i 5.78 0.00 6.77 Men i 2.05 0.00 1.73 Women i 17.19 0.00 21.96 Other countries i 2.84 0.00 3.85 Men i 2.89 0.00 3.19 Women i 0.00 0.00 26.79 Total i 25.29 28.79 18.82 Men i 22.48 24.97 18.80 Women i 60.59 69.52 19.21

36) The reporting perimeter covers 93% for 2017, 99% in 2016 and 85% in 2015 37) SI = (days of work lost/hours worked) x 200,000. 38) In 2017 a decrease in injuries was recorded but those that occurred were more serious and required a higher number of days lost. 39) The change between 2016 and 2017 derives mainly from an increase both in injuries and in professional illnesses. 40) The change between 2016 and 2017 derives mainly from an increase in occupational illnesses. 41) The change between 2017 and 2016 derives mainly from an increase in the hours worked and in number of injuries.

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SHORE PERSONNEL42 - ABSENTEEISM RATE (AR)43 U.M. 2017 2016 2015 Italy i 7,591 7,607 8,734 Men i 5,007 3,999 4,489 Women i 15,533 17,480 19,721 Spain i 19,070 - - Men i 22,793 - - Women i 10,557 - - Greece44 i 17,977 9,570 4,051 Men i 20,754 9,061 1,083 Women i 15,132 10,093 6,612 Finland i 8,817 9,668 7,404 Men i 9,449 10,517 8,194 Women i 6,933 7,318 5,207 Sweden i 13,816 11,270 5,353 Men i 10,876 10,698 7,387 Women i 19,124 12,363 2,992 United Kingdom45 i 4,210 444 4,591 Men i 2,633 330 3,712 Women i 6,367 601 5,705 Malta I 4,237 - - Men I 5,508 - - Women I 1,695 - - Germany i 13,967 11,081 13,760 Men i 10,846 8,101 8,415 Women i 17,638 14,674 20,107 Belgium46 i 17,802 6,635 7,276 Men i 20,004 6,123 4,582 Women i 14,224 7,627 10,181 Other countries i 1,664 1,383 574 Men i 1,144 890 330 Women i 4,163 4,108 2,199 Total i 8,162 6,376 5,496 Men i 6,822 5,030 3,790 Women i 11,615 9,620 9,447

MARITIME PERSONNEL - ABSENTEEISM RATE (AR) U.M. 2017 2016 2015 Greece i 423 516 446 Men i 458 523 451 Women i - 434 337 Finland i 13,858 15,341 10,338 Men i 12,268 12,674 12,057 Women i 22,790 26,531 2,646 Sweden i 23,809 39,303 27,118 Men i 21,121 24,709 20,766 Women i 32,097 88,422 50,581 Other countries i 25 0 41 Men i 25 0 34 Women i - 0 326 Total i 4,468 7,385 2,531 Men i 3,476 4,729 1,931 Women i 18,172 33,977 13,246

42) The reporting perimeter covers 93% for 2017, 99% in 2016 and 85% in 2015. 43) AR = (total days absent/total days worked) x 200,000. The reporting perimeter covers 91% for 2017 and 74% for 2015. 44) The change between 2016 and 2017 derives mainly from an decrease in the number of days worked against an increase in days of absence. 45)The change between 2016 and 2017 derives mainly from a sharp increase in the number of days worked corresponding to an increase in days lost. 46) The change between 2016 and 2017 derives mainly from an decrease in the number of days worked against an increase in days of absence. 78 2017 Sustainability AnnexReport

SHORE PERSONNEL- DEATHS U.M. 2017 2016 2015 Finland i 0 0 1 Men i 0 0 1 Women i 0 0 0 Other countries i 0 0 0 Men i 0 0 0 Women i 0 0 0 Total i 0 0 1 Men i 0 0 1 Women i 0 0 0

MARITIME PERSONNEL - DEATHS U.M. 2017 2016 2015 Finland N° 0 0 0 Men N° 0 0 0 Women N° 0 0 0 Other countries N° 0 0 1 Men N° 0 1 1 Women N° 0 0 0 Total N° 0 1 1 Men N° 0 1 1 Donne N° 0 0 0

G4-LA9

SHORE PERSONNEL47 - AVERAGE TRAINING HOURS. BY GENDER U.M. 2017 2016 2015 Men h/n. 4.9 4.4 5.2 Women h/n. 5.3 5.7 6.6 Total h/n. 5.0 4.8 5.5 SHORE PERSONNEL48 - AVERAGE TRAINING HOURS BY PROFESSIONAL CATEGORY U.M. 2017 2016 2015 Managers h/n. 5.1 8.5 3.6 Executives h/n. 8.7 4.3 3.1 Employees h/n. 4.3 4.7 2.8 Workers h/n. 5.8 3.5 nd Total h/n. 5.1 4.7 2.9

MARITIME PERSONNEL - AVERAGE TRAINING HOURS, BY GENDER U.M 2017 2016 2015 Men h/n. 4.0 3.5 nd Women h/n. 1.5 7.0 nd Total h/n. 3.8 3.8 nd MARITIME PERSONNEL - AVERAGE TRAINING HOURS, BY PROFESSIONAL CATEGORY U.M 2017 2016 2015 Officers h/n. 3.1 3.4 nd Petty officers h/n. 5.4 7.0 nd Ordinary sailors h/n. 3.9 3.0 nd Total h/n. 3.8 3.8 nd

G4-SO5

SHORE PERSONNEL49 WHO RECEIVED ANTI-CORRUPTION TRAINING U.M. 2017 2016 2015 Managers N° 105 42 nd Executives N° 169 87 nd Employees N° 911 503 nd Workers N° 0 0 nd Total N° 1.185 632 nd

47) The reporting perimeter covers 95% for 2017. 48) The reporting perimeter covers 95% for 2017. 49)The reporting perimeter covers 95% for 2017.

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MARITIME PERSONNEL WHO RECEIVED ANTI-CORRUPTION TRAINING U.M. 2017 2016 2015 Officers N° 0 0 nd Petty officers N° 0 0 nd Ordinary sailors N° 0 0 nd Total N° 0 0 nd Environmental indexes EN-3

ENERGY U,M, 2017 201650 201551 Total fuel used ton 1,655,170 1,588,437 1,483,591 HFO (heavy fuel oil) ton 1,191,017 1,113,224 967,703 LFO (light fuel oil) ton 225,545 209,371 207,741 MGO (marine gas oil) ton 238,608 265,843 308,147 EN-15

DIRECT EMISSIONS (SCOPE I) U,M, 2017 201652 2015 53 Total CO2 produced ton 5,184,981 4,979,052 4,656,333 CO2 from HFO (heavy fuel oil) ton 3,709,302 3,467,024 3,013,813 CO2 from LFO (light fuel oil) ton 710,703 659,736 654,601 CO2 from MGO (marine gas oil) ton 764,976 852,291 987,919 EN-21

OTHER EMISSIONS U,M, 2017 2016 2015 Total SO2 ton 51,591 51,044 46,946 SO2 from HFO (Heavy Fuel Oil) ton 46,285 46,516 41,161 SO2 from HFO scrubbed ton 566 474 328 SO2 from LFO (Light Fuel Oil) ton 4,453 3,682 5,035 SO2 from MGO (Marine Gas Oil) ton 288 372 422 EN-23

WASTE U,M, 2017 54 2016 55 2015 Total waste produced, by type m3 103,362 108,852 62,542 Plastic m3 10,317 11,980 8,262 Food waste m3 8,932 8,522 6,459 Domestic waste m3 20,446 21,451 11,507 Waste from operations scraps m3 4,996 6,530 4,093 Freight residue m3 1,227 800 2,550 Sludge m3 27,455 29,073 14,234 Bilge water m3 29,668 30,205 14,849 Other m3 321 292 589 Total waste produced, by disposal method m3 103,362 108,852 62,542 Disposal at sea m3 8,032.23 13,286 412 Offloaded on land/incinerated on board m3 95,330.27 95,566 62,130 Ships operated by the Grimaldi Group from 2015-2017

SHIPS OPERATED BY THE GROUP U.M. 2017 2016 2015 Ships57 n. 119.5 114.8 107.5

50) 2016 figure recalculated after further research. 51) 2015 figure recalculated after further research. 52) 2016 figure recalculated after further research. 53) 2015 figure recalculated after further research. 54)The 2017 reporting perimeter includes the following companies: Grimaldi Group SpA, Grimaldi Deep Sea SpA, Grimaldi Euromed SpA, Finnlines, Atlantic Container Line AB, Minoan Lines SA and Malta Motorways of the Sea Ltd. 55) The 2016 reporting perimeter includes the following companies: Grimaldi Group SpA, Grimaldi Deep Sea SpA, Grimaldi Euromed SpA, Finnlines, Atlantic Container Line AB, Minoan Lines SA and Malta Motorways of the Sea Ltd. 56) The 2015 scope of reference includes the following companies: Grimaldi Group SpA, Grimaldi Deep Sea SpA and Grimaldi Euromed SpA. 57) The number of ships operated is calculated using the “equivalent ship” method, which takes into account the number of months new ships operate when they become operational on a date after the first of the year. 80 2017 Sustainability AnnexReport

GRI Content Index

KPMG S.p.A. provided a limited audit of the Grimaldi Group’s Sustainability Report at 31 December 2017, (in its entirety) based on the provisions of ISAE 3000. For more information about the audit and the procedures followed by the independent auditing firm, please see the “Independent Auditor’s Report on the Sustaina- bility Report”, page 86-88 of this document. The information summarised in the table below divided into General Standard Disclosure and Specific Standard Disclosure, was included under the limited audit. Any other information was not subject to auditing.

GENERAL STANDARD DISCLOSURE Profile Description Reference page/ Direct response disclosure STRATEGY AND ANALYSIS G4-1 Declaration of the highest decision-making entity § Letter to Stakeholders regarding the importance of sustainability to the organisation and its sustainability strategy ORGANISATIONAL PROFILE G4-3 Organisation name § Methodological information G4-4 Main brands, products and services § The Grimaldi Group G4-5 Registered offices of the organisation Via Amari Emerico 8, 90139, Palermo (PA), Italy G4-6 Number of countries in which the organisation works, § The Grimaldi Group name of countries in which the organisation carries out its main operating activities or that are significant in regards to sustainability issues G4-7 Ownership structure and legal form § The Grimaldi Group G4-8 Markets served (including geographic analysis, sectors § The Grimaldi Group served, types of customers and beneficiaries) G4-9 Organisation size (including number of employees, § The Grimaldi Group number of operations, sales, revenue, quantity of pro- § Our people ducts or services provided) § Economic performance: creating shared value § Annex- GRI Indexes G4-10 Total number of employees, subdivided by role, sex, § Our people age and contract type § Annex - Table of GRI Indexes G4-11 Percentage of employees covered by collective con- § Annex - Table of GRI Indexes tract agreements G4-12 Main supply chain characteristics relative to core § Our suppliers and agents business G4-13 Significant changes during the accounting period § Methodological note regarding: size, structure, ownership structure and In 2017, there were no changes involving the supply chain of the organisation organisational structure, ownership structure or the supply chain that would influence comparison with other administrative periods. G4-14 Explanation of any application of prudential standards The Grimaldi Group, in assessing and managing or approaches risks associated with its activities, adopts a prudential approach.

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GENERAL STANDARD DISCLOSURE Profile Description Reference page/ Direct response disclosure G4-15 Signing or adopting of standards, initiatives, or do- §Our sustainability strategy cuments developed by external entities in regards to At present, the Grimaldi Group has not formally economic, environmental and social performance. adopted standards, initiatives, or documents developed by external entities in regards to economic, environmental and social performance. G4-16 Participation in national and/or international trade §Institutions and trade associations associations IDENTIFICATION OF MATERIAL ISSUES AND ACCOUNTING PERIMETER G4-17 List of entities included in the consolidated financial §Methodological note statements or equivalent documents §The Grimaldi Group § Annex-The reporting perimeter G4-18 Explanation of the process used to determine the con- §Methodological note tent of the Financial Statements and the method used §Materiality analysis by the organisation to implement the relative reporting standards G4-19 List of material issues identified during the process to §Materiality analysis define the contents of the Financial Statements § Annex - Reconciliation table for material issues and GRI G4 indexes G4-20 For every material issue, identify the perimeter within §Annex - Reconciliation table for material issues the organisation and GRI G4 indexes G4-21 For every material issue, identify the perimeter exter- §Annex - Reconciliation table for material issues nal to the organisation and GRI G4 indexes G4-22 Explanation of the effect of any changes to information §Methodological note provided in previous reports and the reason for said changes G4-23 Most significant changes with respect to the previous §Methodological note reporting period, with reference to perimeters and §Governance system and business ethics objectives STAKEHOLDER INVOLVEMENT G4-24 List of stakeholder groups with which the organisation §Our stakeholders and channels for dialogue engages G4-25 Standards for identifying and selecting the main sta- §Our stakeholders and channels for dialogue keholder groups with which to engage G4-26 The organisation’s approach to stakeholder engage- The Grimaldi Group has not yet implemented a ment (frequency, type of activity and stakeholders structured stakeholder engagement process involved) § Our stakeholders and channels for dialogue G4-27 List of key themes arising from stakeholder engage- §Materiality analysis ment and description of the organisation’s response REPORT PROFILE G4-28 Reporting period for information provided §Methodological note G4-29 Date of publication for the most recent sustainability The 2016 Sustainability Report was published in report August 2017. G4-30 Reporting period Annual G4-31 Contacts for information about the report and its [email protected] content [email protected] G4-32 Selection of the “in accordance” option and table §Methodological note explaining the content of the Financial Statements (GRI Content Index) G4-33 Polices and practices implemented to obtain external §Independent Auditor’s Report assurance for the Report

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GENERAL STANDARD DISCLOSURE Profile Description Reference page/ Direct response disclosure GOVERNANCE G4-34 The organisation’s governance structure, including §Governance system and business ethics committees that answer directly to the highest gover- §Environmental responsibility ning body. Committees involved in decision making in regards to economic, environmental and social issues ETHICS AND INTEGRITY G4-56 Values, principles, standards and behavioural norms §Our Mission and our values; adopted by the organisation as a code of conduct or §231 Model and Code of Conduct code of ethics §Compliance

SPECIFIC STANDARD DISCLOSURE

KPI Description Reference page/*Direct response ECONOMIC PERFORMANCE G4-DMA §Economic performance: creating shared value G4-EC1 Direct economic value generated and distributed §Economic performance: creating shared value SUPPLY POLICIES G4-DMA Our suppliers and agents G4-EC9 Percentage of spending with local suppliers At present it is not possible to supply information on spending with local suppliers. The Group has undertaken to obtain this information over the medium term. ENERGY G4-DMA § Our sustainability strategy; §Environmental *Disclosures on responsibility; §Environmental performance Management Approach G4-EN3 Energy consumption within the organisation §Environmental performance*§ Annex- GRI Indexes EMISSIONS G4-DMA §Environmental responsibility; §Environmental performance G4-EN15 Direct emissions of greenhouse gases (scope 1) §Environmental performance*§Annex - GRI Indexes*The coefficients used to calculate CO2 are those indicated in ISO 8217 for HFO, in ISO 8218 for LFO and ISO 8219 for MGO. G4-EN21 NOx, SOx and other significant emissions §Environmental performance*§Annex - GRI Indexes*The calculation takes into account the percentage of sulphur declared in delivery documents provided by fuel suppliers. EXHAUST AND WASTE G4-DMA §Environmental responsibility; §Environmental performance G4-EN23 Waste produced by type and disposal method §Environmental performance *§Annex - GRI Indexes G4-EN24 Number and volume of significant spills §Environmental performance

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SPECIFIC STANDARD DISCLOSURE

KPI Description Reference page/*Direct response PRODUCTS AND SERVICES G4-DMA § Our approach to the challenges of the future G4-EN27 Initiatives to mitigate the environmental impacts of § We invest in innovation products and services and degree to which impacts are mitigated PERSONNEL MANAGEMENT G4-DMA §Our people; §Annex-GRI Indexes G4-LA1 Total number and rate of newly hired employees §Annex - GRI Indexes and turnover rate, subdivided by age, sex and geographic area G4-LA2 Personnel benefits §Our people WORK POLICIES G4-DMA The Grimaldi Group guarantees and promotes human rights in all areas in which it operates, creating equal opportunities for its employees and equitable treatment for all employees, regardless of race, nationality, political opinions, faith, sex, age, disability status, sexual orientation, or personal or social conditions. G4-LA3 Work return rate and retention rate after parental §Annex - GRI Indexes*The parental leave leave, by sex. retention rate for maritime personnel is not currently available. WORKPLACE HEALTH AND SAFETY G4-DMA §Prevention of workplace injuries; *§Safety and security management G4-LA5 Percentage of workers represented on health and §Annex - GRI Indexes safety committees G4-LA6 Type and rate of workplace injuries, occupational §On-board accident rate; §Annex-GRI Indexes diseases, days of work lost, absentee rate and total number of deaths, by geographic area and sex TRAINING AND EDUCATION G4-DMA §Training and skill development §Performance evaluation G4-LA9 Average annual training hours per employee, §Annex - GRI Indexes subdivided by worker category and sex Percentage of employees who receive performance G4-LA11 and career development evaluations §Performance evaluation EQUAL OPPORTUNITY G4-DMA Our people G4-LA12 Structure of the organisation’s governing bodies and §Annex - GRI Indexes*With regard to breakdown of employees employees falling in protected categories, the Group works in compliance with the regulations in effect in all the countries in which it works. *No member of the governing bodies falls in a protected category. ANTI-CORRUPTION G4-DMA § The governance system G4-SO5 Corruption cases identified and corrective actions During the reporting period for this document, taken no cases of corruption occurred. ANTI-COMPETITIVE BEHAVIOUR G4-DMA § Compliance G4-SO7 Number of legal cases relative to anti-competitive, § Compliance anti-trust or monopolistic behaviour

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SPECIFIC STANDARD DISCLOSURE

KPI Description Reference page/*Direct response COMPLIANCE G4-DMA § Compliance § La compliance G4-SO8 Monetary value of significant sanctions and total § Compliance number of non-monetary sanctions for non- compliance with laws and regulations LABELLING OF PRODUCTS AND SERVICES G4-DMA § We create value for our stakeholders G4-PR5 Results of customer satisfaction surveys § Our customers

85 RELAZIONE DELLA SOCIETà DI REVISIONE

Tradition, responsibility, innovation. Sustainability Report 2017 Sustainability Report

sustainability REPORT

Sustainability Report 2017 2017