Connecting Pieces of Your World
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Connecting Pieces of Your World 2013 SUSTAINABILITY REPORT ANSALDO STS IN BRIEF 1 Performance indicators 1 The Pillars of Sustainability for Ansaldo STS 2 Letter from the Chairman and CEO 4 CONTENTS 6 COMPANY PROFILE 9 ANSALDO STS CORPORATE SOCIAL RESPONSIBILITY 19 THE ENVIRONMENT, HEALTH AND SAFETY 53 OUR PEOPLE 75 SUPPLY CHAIN 101 COMMUNITY 109 SUSTAINABILITY OF THE AUSTRALIAN BUSINESS 119 ECONOMIC PERFORMANCE 139 SUSTAINABILITY COMMITMENTS 152 METHODOLOGICAL NOTES 158 GRI CONTENT INDEX 160 CERTIFICATE OF COMPLIANCE 171 Ansaldo STS | 2013 Sustainability Report Ansaldo STS in brief Ansaldo STS is a technological company listed on the Milan Stock Exchange. It is active in the railway and urban rail transportation system market, designing and supplying traffic management and signalling systems and related services. It designs, builds and manages transportation and signalling systems for freight and passenger railway and urban rail lines. It is a general contractor, system integrator and supplier of large scale turnkey projects around the world. Performance indicators (K€) 31.12.2013 31.12.2012 FINANCIAL HIGHLIGHTS ACQUIRED ORDERS 1,483,587 1,492,346 ORDER BACKLOG 5,601,021 5,683,253 REVENUE 1,256,419 1,247,849 OPERATING PROFIT (EBIT) 118,093 117,073 PROFIT FOR THE YEAR 74,815 75,696 NET WORKING CAPITAL 21,027 (48,147) NET FINANCIAL POSITION (net cash position) (260,078) (301,982) SOCIAL HIGHLIGHTS TOTAL VALUE DISTRIBUTED TO STAKEHOLDERS 1,229,102 1,219,453 VALUE DISTRIBUTED TO EMPLOYEES 309,454 311,988 VALUE DISTRIBUTED TO SUPPLIERS 806,302 802,121 VALUE DISTRIBUTED TO THE COMMUNITY (taxes, donations and sponsorships) 43,902 43,216 VALUE DISTRIBUTED TO LENDERS (shareholders and banks) 69,444 62,128 INVESTMENTS IN RESEARCH AND DEVELOPMENT 32,036 32,260 INVESTMENTS IN TRAINING 2,392 2,069 AVERAGE HOURS OF TRAINING 19.9 18.7 THE ENVIRONMENT, HEALTH AND SAFETY GREENHOUSE GASES (tCO2e) 22,705 28,818 ENERGY CONSUMPTION PER HOUR WORKED (kWh/no. of hours) 3.48 3.27 % ENERGY FROM RENEWABLE AND NUCLEAR SOURCES 38% 36% WASTE PRODUCED PER HOUR WORKED (Kg/no. of hours) 0.06 0.08 % WASTE RECOVERED 68% 48% INJURY FREQUENCY RATE - production sites 1.21 1.17 INJURY FREQUENCY RATE – offices 0.09 0.34 INJURY SERIOUSNESS RATE - production sites 52.23 72.76 INJURY SERIOUSNESS RATE - offices 1.34 3.61 1 Ansaldo STS in brief | The Pillars of Sustainability for Ansaldo STS The Pillars of Sustainability for Ansaldo STS • INTERNAL SUSTAINABILITY COMMITTEE Composed of the managers of the main company functions, this committee defines strategic guidelines, commitments and projects for sustainable development and social responsibility. It reports directly to the Chairman and CEO and, through them, to the Board of Directors. • MATERIALITY Ansaldo STS defines the content of the Sustainability Report by asking its stakeholders for their opinion on the different aspects to be considered in the report. This enables the company to more genuinely report on sustainability issues that affect its stakeholders’ judgements and decisions. • STAKEHOLDER ENGAGEMENT Ansaldo STS is committed to understanding the needs and expectations of its people and involving them in projects to develop skills and expertise. It is focused on constantly monitoring its customers’ satisfaction and it promotes the company’s technological progress by participating in training and research projects in collaboration with universities and institutions, particularly with respect to the safety and energy efficiency of rail transportation systems. • INTEGRATED ENVIRONMENT, SAFETY AND QUALITY SYSTEM Ansaldo STS has an integrated management system (“IMS”) for the environment, safety and quality, which integrates all group processes in one single structure, enabling the organisation to operate with shared objectives. It has also certified its individual sites in accordance with UNI EN ISO 14001 and OSHAS 18001 standards. • INNOVATION, SAFETY AND RESPECT FOR THE ENVIRONMENT IN PRODUCTS AND SOLUTIONS Ansaldo STS has invested approximately Euro 32 million in each of the past two years in research and development to supply its customers and end users with cutting edge products and solutions, very best railway and urban rail transportation system design and construction methods and procedures to increase safety and reduce their direct and indirect environmental impact. 2 Ansaldo STS | 2013 Sustainability Report • FIGHT AGAINST CLIMATE CHANGE Ansaldo STS reports on direct and indirect greenhouse gas emissions (Scope I, II and III) in accordance with the GHG protocol1, undertaking to decrease these emissions, in part through people mobility policies, plans to cut energy consumption and improve efficiency, use energy from renewable sources and manage waste effectively. • WORKERS’ HEALTH AND SAFETY Promoting the health and safety of its workers is a strategic commitment for Ansaldo STS. The company also tracks “near misses” – which are accidents without consequences resulting from undesired or unexpected situations, which could potentially harm people or things – to identify the appropriate solutions before a real accident happens. • SUPPLY CHAIN SUSTAINABILITY Ansaldo STS is committed to defining, sharing and implementing a sustainability roadmap for its supply chain to promote a sustainable business culture with its suppliers. This will progressively improve the economic, environmental and social impact (labour and safety practices, respect for human rights and the development of local communities) along the supply chain. • SUSTAINABILITY COMMUNICATIONS AND DISCUSSION This is the fifth year that Ansaldo STS has prepared the Sustainability Report in accordance with the Global Reporting Initiative guidelines and with certification by an independent auditor. Ansaldo STS has signed the Global Compact and is a founding sponsor of the Global Compact Network Italian Foundation. It also participates in the Carbon Disclosure Project and is on UNIFE’s Sustainable Transport Committee. A section of its website is dedicated to sustainability, where it publishes a navigable integrated review of its report, supplementing information on operating, social and environmental management. 1. The Greenhouse Gas Protocol (GHG) is the most widely used international accounting tool for government and business leaders to understand, quantify, and manage greenhouse gas emissions. 3 Ansaldo STS in brief | Letter from the Chairman and CEO Letter from the Chairman and CEO We would like to take this opportunity to address everyone who interacts and works with Ansaldo STS every day: the millions of passengers who transit safely using our railway and metro transportation technologies, our customers, our shareholders, our men and women workers, institutions, our partners and the communities and associations with which we operate and collaborate and which continuously motivate us and provide us with invaluable recommendations. Ansaldo STS management and all its employees are committed to achieving strategic objectives for profitable growth and ensure that they are in synergy with our sustainability values, respect for the environment and quality of life. Sergio De Luca This mission is described in our is Ansaldo STS’ 2013 sustainability Chairman, Ansaldo STS S.p.A. charter of values, which represents report dedicated to our stakeholders, who we are and reminds us why but it is written with and for them. customers choose us, why our workers are so committed to Ansaldo STS’ presence on the our company and that we are world’s leading markets ensures that “upstanding” people who do things we have the necessary solutions the “right” way, working together to for customers and the various local innovate and meet the needs of our companies seeking the benefits of valued customers. technologies that improve the safety and efficiency of railway and metro This is why we have begun publishing transportation. a report called the integrated review on the Ansaldo STS website. The For the first time, Ansaldo STS has report highlights the close ties devoted a section of this document between economic, social and to a local business that is particularly environmental aspects. sensitive to sustainability issues, Australia, in which the best practices In accordance with the G4 guidelines and local characteristics of a key of the Global Reporting Initiative, domestic Ansaldo STS company are we aim to genuinely consider our described. stakeholders’ expectations and this is why Ansaldo STS’ sustainability In macro terms, Ansaldo STS’ committee has conducted a market is sound and shows, at materiality analysis. global level, annual growth rates in the range of 2% to 3%. Key We are always striving to improve market drivers remain positive: and this is why we have started growing global trade and rising comparing our stakeholders’ opinion traffic, urbanisation processes, of Ansaldo STS’ performance in environmental concerns and these aspects with our own opinion growth in emerging markets, of the same. Accordingly, not only infrastructures and intermodal 4 Ansaldo STS | 2013 Sustainability Report transport. An even more significant contract in Riyadh for the new metro increase can be seen in emerging (line 3) and the first contract for new markets, while there are significant Tramwave® technology in the China, opportunities in the US and for the city of Zhuhai. Australia as well. Ansaldo STS boasts strong roots on markets This demonstrates how Ansaldo STS in industrialised countries, is well is a company of value, and what positioned on emerging markets is more,