We Invest to Improve, Always
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WE INVEST TO IMPROVE, ALWAYS 2017 Sustainability Report 1 “In everything we do and every time we plan an investment or develop our production system, we are guided by our strong propensity for continuous improvement and the conviction that only by challenging ourselves can we continue to innovate, resulting in a benefit for the environment and the people.” Alessandro Gilotti RAM President Contents LETTER FROM THE PRESIDENT 4 1. RAM AND SUSTAINABILITY 1.1 Reporting standards and criteria 8 1.2 Approach to sustainability 9 1.3 Highlights 2017 18 2. RAM: A STRATEGIC 2 SYSTEM, A LONG-TERM APPROACH 2.1 About us 22 2.2 Shareholders, management, community 24 2.3 Integration with the community and environmental investments: a commitment that renews itself 26 2.4 Our development path 28 2.5 People and employment 30 2.6 Training 34 2.7 Staff selection 36 2.8 Innovation becomes substantial: production cycle and products 38 2.9 The Port, a strategic asset 46 3. THE ENVIRONMENT, A PRIORITY WITHOUT COMPROMISES 3.1 RAM, health and community 52 3.2 Environmental monitoring and control 57 3.3 The most important environmental projects 58 3.4 Air 60 3.5 Greenhouse gases 61 3.6 Water 62 3.7 Energy 64 3.8 Waste 67 4. SAFETY, 1 OUR GUIDING LIGHT 5 4.1 Our goal is always “zero accidents” 70 4.2 Initiatives for safety 74 4.3 Maintenance 77 4 5. RELATIONSHIPS 3 WITH THE COMMUNITY: SUPPORT FOR PROJECT DEVELOPMENT 5.1 Industry and community 82 5.2 Education, training, and community 85 5.3 Labour relations 87 5.4 Transparency 87 6 6. DISTRIBUTION 7. APPENDIX OF THE ECONOMIC 7.1 Management systems ADDED VALUE and certification 100 7.2 Committees and sub-committees 101 6.1 Staff 92 7.3 Primary sustainability indicators 102 6.2 Financiers 92 GRI contents table 104 6.3 Institutions 93 Letter of assurance 108 6.4 Community 94 6.5 We distribute value to local businesses 96 0 Xxxxxxxxxxxxxxxxxxxxxxxxx LETTER FROM THE PRESIDENT Over the years we have shown that we are able to seize economic, industrial, and growth opportunities. This is possible because we have and do set common goals, many of which relate to environmental sustainability. For seven years now, compiling the yearly As proof of the constant attention to these themes, Sustainability Report is our chance to stop for a in 2017 we were invited by the Ministry of Economic moment and examine all the decisions we have Development, which considers us to be a strategic taken and that we know have an impact on the asset for the Country, to share our experience and company and shareholders, our workers, the entire daily work to further decrease the environmental community, Sicily, and especially the province of impact of our activities. We are pleased that we are Messina, which we are an integral part of. considered a “best practice” but are aware that in order to have noteworthy results we must have the In everything we do and every time we plan an courage to make large investments. Considering investment or develop our production system, we only environmental investments, for us this means are guided by our strong propensity for continuous approximately Euro 110 million only in the last improvement and conviction that only by three years. We continue to invest despite the challenging ourselves can we continue to innovate, uncertain consumption trends. In fact, in 2017 we resulting in a benefit for the environment and the saw a decrease in the use of petroleum products people. in Italy, which is explained through the decrease in transport fuel sales despite the increase in vehicle 2017 was an important year for us because we registrations. celebrated 20 years of joint venture between ENI and Q8, one of the few truly positive and lasting Our investments allow us to make innovations, even examples of equal cooperation between two large in a world that is considered to be “traditional” like and potentially competing companies. the world of refineries. 4 | 2017 Sustainability Report We have been applying the Industry 4.0 and the environmental impact, and concrete initiatives Digital Transformation concepts for years now. supporting local and social projects are our way of Technologically advanced sensors, intelligent showing that we are here and are aware that we ventilation systems, and transport software are are a value for the Milazzo and Valle del Mela area. already a reality at RAM. For us, being part of the community also means We would like our facility to continue to be safer, promoting the energy culture. We open the doors cleaner, and more efficient for our workers and we of the plant to schools and universities, organizing back that up with concrete deeds. One of the many guided tours and constructive meetings to give projects created is the “Integrated Port Handling” everyone the possibility to get to know us better. system. Our port of Milazzo, which is strategic for Over 600 students visited our facility in 2017. transporting our products and for the development of the entire community, is the first port in Italy to In this Report, I see all of our profuse commitment have computerized its port operations. We helped to sustainability, which guides us in all of the make this possible. decisions we make at the company and is the strategic key for the present and future of the The link to our location is not just related to our refinery. geographic position. More than 97% of the over 600 people who work for us come from the surrounding Alessandro Gilotti area and a large part of the thousand contractor RAM President workers who are present in the refinery each day come from Milazzo and the province of Messina. They were born here, work here, and have decided to build their future and raise their children here. For us, protecting the community also means protecting the refinery and its workers, therefore, investments in technological innovation to reduce 5 6 | 2017 Sustainability Report 1 RAM AND SUSTAINABILITY 1.1 Reporting standards and criteria 8 1.2 Approach to sustainability 9 1.2.1 The Integrated Management System, Model 231, and the Code of Ethics 10 1.2.2 Always working to improve 12 1.2.3 The materiality matrix 16 1.3 Highlights 2017 18 7 0 Xxxxxxxxxxxxxxxxxxxxxxxxx 1.1 REPORTING STANDARDS AND CRITERIA For us, the Sustainability Report is an important Termica Milazzo Srl, the company acquired by communication tool we use to inform our RAM in 2016, of which it is the sole shareholder stakeholders (see RAM stakeholders, page with management and coordination activities, 14) about the company’s economic, social, and is excluded from the report. As of November 1, environmental performance. Servizi Milazzo Srl, a company founded by RAM in 2014 to manage the HMU2 plant, was incorporated We have now reached the seventh edition, and, like in Raffineria di Milazzo Scpa following the every year, the Report shows the concrete actions “merger for incorporation”. Therefore, the 2017 that we have taken to protect the health and safety Sustainability Report presents the data with the of our employees and the population. We have variations due to this corporate operation. also highlighted the actions we took to protect the environment and for the development of the entire In preparing this report, which was also ecosystem, which were also made possible through subject to an independent external audit by the ongoing relationships with local participants. PricewaterhouseCoopers, we adopted the G4 integrated sustainability reporting guidelines with In the Sustainability Report we record and recount indicators for the Oil & Gas industry issued by the the actions that confirm our desire to be an Global Reporting Initiative (GRI) with a “core” level integrated, stable, transparent, and sustainable of adherence. GRI is the independent international presence in the community. association whose purpose is to: • Create, promote, and distribute guidelines for To guide us in formalizing this process with a voluntary reporting of economic, environmental, view towards continuous improvement, we have and social performance; the Best Available Techniques (BAT), which are • Equalize social and financial reporting in international standards that RAM continuously terms of rigor, comparability, accuracy, clarity, seeks to be in line with, even before they become timeliness, and reliability. legal requirements. The Sustainability Report is subject to the As in the previous editions, the reporting scope approval of the Board of Directors and, therefore, of the document is the activity performed by the is presented in the Stakeholder Meeting along Milazzo Refinery during 2017. with the Fiscal Year and Consolidated Financial Statements. 8 | 2017 Sustainability Report 1.2 APPROACH TO SUSTAINABILITY We have always been committed to producing We implement short, medium, and long-term high quality fuels using the most up to date and company projects and concrete actions, invest innovative technology, with the contribution of in training to enhance our human resources, motivated and professional human resources, and adopt transparent and objective selection and while respecting the environment and health processes for choosing our suppliers. We also and safety. build and cultivate continuous relationships with the local area and population, knowing that they Sustainability and protection of the environment, provide the stimuli and requirements that we must community, and public health are an important respond to and take care of. part of our daily work. So, our good intentions are transformed into actions. 9 1 RAM and sustainability 1.2.1 THE INTEGRATED MANAGEMENT SYSTEM, MODEL 231, AND THE CODE OF ETHICS We have collected and formalized all of the Internally, we have dedicated teams of people general requirements in terms of Health - Safety - who, on a daily basis, study and implement the Environment - Energy and Quality in an Integrated best possible technological solutions (BAT, Management System (IMS), which is shared with all Best Advanced Technologies) and improve the company departments.