Growing Together

GROWING TOGETHER 2016 Sustainability Report “We have shown, and will continue to do so, that Sicily can accommodate a stable, competitive and sustainable industry with a high degree of technology. Our forward-looking attitude is an integral part of the Milazzo community and we see this as a driver for growth, creating new opportunities for well-being and investment”. Alessandro Gilotti President of RAM Raffineria di Milazzo Index 4. THE ENVIRONMENT, A CONSTANT COMMITMENT 19 TO ITS PROTECTION 4.1 Investments for the environment 56 4.5 Energy 62 LETTER FROM THE PRESIDENT 6 4.2 Air 58 4.6 Waste products 63 RAM IN NUMBERS 8 4.3 Greenhouse gases 59 4.7 Environmental monitoring and controls 65 4.4 Water 60 1. SUSTAINABILITY ACCORDING TO RAM 1.1 Principles and criteria of reporting 12 1.2 Approach towards sustainability 13 1.3 Commitment to sustainability 14 1.4 Materiality analysis 15 1.5 Materiality matrix 16 1.6 Management system and code of ethics 17 55 11 2. RAM: A COMPANY WHICH 5. RELATIONS WITH LOOKS TO THE FUTURE 67 THE LOCAL COMMUNITY, 2.1 An overview of the Raffineria di Milazzo 20 WELL-BEING FOR ALL 2.2 Our Governance 22 5.1 Valorising cultural promotion 69 2.3 Our process of development 24 5.2 Valorising social commitment 70 2.4 Our people: the daily driver of innovation 26 5.3 Valorising education in sport 70 2.5 Technology in action: the production cycle 5.4 Valorising the safeguarding of health 72 and finished products 32 2.6 Investments, the fuel for our future 36 5.5 Valorising education for young people 73 2.7 Marine logistics 40 5.6 Institutional relations 74 5.7 Union relations 75 5.8 Transparency and sharing 75 3. SAFETY, A SYSTEM 6. PROMOTING GROWTH OF ELEVATED 43 6.1 Distribution of added economic value 78 77 STANDARDS 6.2 Our correlated activities, working together to be competitive 80 3.1 Accidents, RAM wins 6 - 0 44 6.3 The distribution of values amongst local 3.2 Investments for safety 45 enterprises 82 3.3 Plant safety: a system 6.4 Port activities 84 characterised by excellence 47 3.4 Maintenance 49 APPENDIX 3.5 The main Turnaround 50 3.6 Protocol for the protection Management systems and certification 88 of health 52 Committees and sub-committees 89 Main indicators of sustainability 90 Table of GRI correspondence 92 Auditor’s report 96 4 | 2016 Sustainability Report 5 LETTER FROM THE PRESIDENT and competence our people display every day. We have reached the milestone of one billion euros In this Report, we also reflect on our actions taken Foremost amongst these are our employees, but of investment over 15 years, a figure especially to support the community. Our collaboration with our chain of suppliers also play an increasingly significant. schools, universities and the educational world, important role in enabling us to set ambitious which is an ongoing part of our programme, has objectives for sustainability. We are also particularly proud of our record of six been particularly strong. years of accident-free activity. This is the result of On average, more than 1,000 contractors work in increasingly high safety standards, which we have This year we again supported the Milazzo-Aeolian our plant every day, demonstrating the high scale perfected over the years, and the exceptional level Islands branch of the Italian Red Cross. This not of our activity. We have shown, and will continue of care taken by our people in relation to safety. only raises awareness of health issues amonst to do so, that Sicily can accommodate a stable, the local community, but also creates a positive competitive and sustainable industry with a high This result is even more impressive if one spirit of citizenship which we consider extremely degree of technology. considers that, in 2016, we carried out a turnaround beneficial on a social level. maintenance programme which involved almost Our forward-looking attitude is an integral part 2,000 people on average working in our plant In summary, this Report is not just about numbers of the Milazzo community and we see this as a each day during this period, in addition to our own and performance, but also the passion, dedication It is with great satisfaction that we showcase, in driver for growth, creating new opportunities personnel. and responsibility which we apply every day to this our sixth Sustainability Report, our tangible for well-being and investment. At the same time support the community and the environment, of and positive commitment to our area of operation it confirms our determination to protect the Our safety initiatives have also included building a which we are guests. and ecosystem. safety and well-being of the local people and new fire station and purchasing a state of the art environment, which is an essential requisite of a fire truck, confirming our commitment to constantly Alessandro Gilotti Health, safety and environmental protection is long-term project. modernising equipment to successfully manage any President of RAM part of our DNA and forms the foundation of the risks that may arise. agreement signed by our shareholders which has Maintaining employment levels in the area is a high created the company you see today. Our journey priority; an example of this was our acquistion in The extremely positive results related to the of growth has led us to achieve industrial 2016 of Termica di Milazzo, a thermal electric plant, environment which we achieved in 2016, confirm excellence, which is recognised internationally when we retained its entire workforce. the wisdom of our decision to invest substantially and places us in the global ‘Champions League’ for in this area. plants of this type. 2016 was characterised by further progress in developing the safety and sustainability of our Renewing some plants and introducing new These excellent results have been achieved plant. Constant improvements were made possible technology has provided significant results in thanks to our ongoing focus on innovation and by our propensity for investment and will provide terms of reducing emissions, as well as water and continuous improvement, backed by the passion strong benefits over time. energy consumption. 6 | 2016 Sustainability Report 7 624 RAM employees ZERO Find out more on page RAM 43 of this document. 99% WORK-RELATED Chapter 3 - Safety Of personnel with indefinite IN NUMBERS term contracts INCIDENTS IN THE 48.1 LAST 6 YEARS Million euros spent on personnel 9.4 1,972 Average daily presence Million tons of third-party company staff of processed product during the turnaround 88.9 97% Million euros of RAM personnel originating in investments from the Province of Messina 110.1 24% Million euros spent of the national demand with Sicily-based suppliers for petrol satisfied 62.5 15% Million euros spent with of the national demand suppliers from the province for diesel satisfied of Messina 8 | 2016 Sustainability Report 9 1 SUSTAINABILITY ACCORDING TO RAM 1.1 Principles and criteria of reporting 12 1.2 Approach towards sustainability 13 1.3 Commitment to sustainability 14 1.4 Materiality analysis 15 1.5 Materiality matrix 16 1.6 Management system and code of ethics 17 10 | 2016 Sustainability Report 11 1. Sustainability according to RAM 1.2 1.1 PRINCIPLES AND CRITERIA APPROACH OF REPORTING TOWARDS SUSTAINABILITY THE BOUNDARIES THE REFINERY Our vision is the production of high-quality combustibles and fuels through the most modern and innovative technology, as well as with motivated and professional human resources, in full respect for the environment and the health and safety of people. As our development is based on our capacity to innovate, and therefore to keep our company active over time, sustainability is a fundamental aspect for us. A company which adopts socially responsible behaviour, monitoring and responding to the economic, environmental and social aspects of all The Raffineria di Milazzo (RAM) Sustainability established and owned by Raffineria di Milazzo SCpA parties involved, also aims to obtain a competitive Report, now in its sixth edition, is published on and Termica Milazzo Srl, acquired in 2016, is to advantage. a yearly basis and forms the main method of be considered as excluded from the analysis. Our This is why our Sustainability Report is of particular communication with stakeholders regarding the 2016 report has been drawn up according to the importance in reporting on our activity in this field economic, social and environmental performance principles indicated by the GRI - Global Reporting and developing a constructive and reciprocally of the company. Initiative, following the GRI-G4 guidelines, with an beneficial relationship with our stakeholders. The aim of this document is to provide evidence of “in accordance - core” level of adhesion, and the In our case, sustainability is achieved through the assumption of responsibility of our company, applicable supplements included in the Oil & Gas the integration of social and environmental which operates in a highly technological field, sector, which allow for the illustration of results requirements into company procedures and focused on the future, and in close contact with the and effects which have characterised the period practices, with actions for the protection of the community. of accounting regarding undertakings, strategies environment, constructing relations with the The Refinery is in fact continuously called on to and methodology for organisation management. territory, contributing to, and participating in, the adapt to Best Available Techniques (BAT), which The data and information required by the solving of problems, investing in human capital, requires a constant investment. indicators included in the SSD - Specific Standard and carefully selecting suppliers. Disclosure - were collected during interviews with In this sense, in the community where we are The 2016 Sustainability Report also illustrates the company managers and calibrated according to located, we are committed to developing: actions carried out for the protection of employees, the GRI - G4 indicators.

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