Sustainability Report 2018 Sustainability Report

sustainability REPORT

Sustainability Report 2018 2018

www.grimaldi.napoli.it www.grimaldi.napoli.it Tradition, responsibility, innovation.

Graphic Design Marco Di Lorenzo 2018 Sustainability REPORT

Summary

Letter to Stakeholders 4 7.4 Institutions and trade associations 48 7.5 Safety and Security 50 Methodological information 6 7.5.1 Safety 51 A year in a page: our 2018 7 7.5.2 Security 55 7.6 Our role in the community 56 The Grimaldi Group 8 7.6.1 Investing in the future: collaborations with 4.1 Our history 11 associations, universities and research institutes 56 4.2 The business model 13 7.6.2 The Grimaldi Foundation Onlus 60 4.3 Our Mission and our Values 15 7.6.3 Humanitarian aid 62 Governance system and business ethics 17 Environmental responsibility 64 5.1 Model 231 and the Code of Conduct 18 8.1 The regulatory framework of reference 64 5.2 Compliance 19 8.2 Our approach to the challenges of the Our sustainability strategy 20 future 66 8.2.1 The Integrated Management System 66 6.1 Our stakeholders and channels for 8.3 We invest in innovation 68 dialogue 22 8.3.1 Grimaldi Green 5th Generation (GG5G) 69 6.2 Group highlights 23 8.3.2 Research projects and innovation 71 6.3 Materiality analysis 27 8.4 Environmental performance 72 6.4 Economic performance: creating shared value 29 Objectives 77 We create value for our stakeholders 31 Commitment List 79 7.1 Our customers 31 Appendix 7.1.1 Passenger transportation 32 Materiality Analysis Process 80 7.1.2 Freight transport 33 Reconciliation table for material issues 7.2 Our people 35 and GRI standards 81 7.2.1 Personnel selection policies 36 7.2.2 Training and skill development 42 The reporting perimeter 81 7.2.3 Performance evaluation 43 GRI indexes 82 7.2.4 Workplace health and safety 44 GRI Content Index 89 7.3 Our suppliers and agents 45 Auditor’s Report 94

2018 Sustainability Report III 1 Letter to Stakeholders

Dear Stakeholders, this 2018 Sustainability Report gives us the opportu- shipyards Jinling and Yangfan respectively. nity to review the Grimaldi Group’s economic, social The Grimaldi Group is convinced that the future and environmental performance, continuing along is “Green” and is constantly striving to ensure the the path we began in 2015. maximum effort so that our transport and logis- 18 latest-generation ships under construction tics are increasingly on the cutting edge of envi- that will be added to the 115 owned units, over ronmental sustainability, technological innovation 4 million passengers transported in 2018 (1 mil- and safety. lion more passengers transported than in 2017), 12 latest-generation ships, the Grimaldi Green 5th and 16,000 employees, of which approximately Generation (GG5G) Ro-Ro vessels, will become part 12,600 are European citizens: these are the most of the fleet in the upcoming years, 9 of which will important numbers which convey how large the be operated by Grimaldi Euromed in the Mediter- Grimaldi Group has become, in view of constant ranean and 3 by Finnlines in the Baltic Sea. This growth. refers to an overall investment of over USD 800 In terms of economic wealth produced, in 2018, the million. The new constructions will reduce pollutant Group exceeded the threshold of € 3 billion in turn- emissions to zero during stopovers in port thanks over, with an increase of more than € 100 million to their innovative lithium batteries. They will be the compared to 2017 (+6%). Of this, over 80% was dis- new flagships of the global fleet for freight shipping, tributed among suppliers, employees, lenders, the both in size and technological equipment, with a Public Administration and the social community. In double garage loading capacity compared to the 2018, the Greek subsidiary Minoan Lines paid off its larger ships operated by the Group and triple com- corporate debt which amounted to € 500 million pared to the previous generation of Ro-Ro vessels, ten years ago, when the Group acquired the con- but with the same fuel consumption. A further 6 trolling interest in the company. Pure Car & Truck Carrier vessels will be added to At the end of 2018, the Group boasts a fleet of over these new constructions, which will be delivered 130 ships, 116 of which are directly owned. The from the Yangfan shipyard by 2020 for the Group’s Group’s proprietary ships have an average age of transoceanic services, representing an investment approximately 13 years (significantly lower than the of over USD 300 million. average for the industry and the vessel’s useful life). The Group also continues to invest in the installa- These are modern and technologically-advanced tion of exhaust gas cleaning systems (“scrubbers”) ships, deployed on regular lines, in a network con- in order to comply with the international IMO 2020 necting over 130 ports in 47 countries and 4 conti- regulation that will set sulphur emission limits from nents. The programme to upgrade and expand the 1 January 2020. At the end of 2018, 32 Group ships fleet continued in 2018 with the delivery of two new have been fitted with scrubbers. The 2019-2020 in- vessels to Grimaldi Euromed, the MV Grande Hal- vestment plan will include 52 ships, with an invest- ifax and the MV Grande Torino, from the Chinese ment of approximately € 150 million.

4 2018 Sustainability Report Cap.1 -Letter to Stakeholders

In addition to the investment in tonnage, the Grimaldi or invested in low-risk securities, the income from Group is continuing its development programme for which is reinvested in charitable activities. Over € 6 logistics services, with an always attentive focus million were spent on social projects between 2007 on sustainability issues. Via the subsidiary Valencia and 2018. Terminal Europa (VTE), we have recently joined the The Family School is the Foundation’s most signifi- European “H2PORTS - Implementing Fuel Cells and cant project, and it has been a planned commitment Hydrogen Technologies in Ports” project, with the for the Foundation since it was established. On 17 aim of providing efficient solutions that facilitate the October 2018, the Foundation signed an agreement rapid transition from a fossil-fuel based industry to a to take over the former Bianchi Institute on gratui- low carbon and zero emissions industry. As part of tous loan for use and future purchase for over € 10 this project, two pilot initiatives will be tested in real million. This is one of the oldest and most prestig- operating conditions: a tractor for moving rolling ious buildings in the centre of Naples, which dates stock, fuelled by hydrogen cells, and a mobile hy- to the 17th century and was a landmark on the edu- drogen refuelling station. Thus VTE, which manages a Ro-Ro terminal in the port of Valencia, will become cational landscape for the young people of Naples the first European structure to use hydrogen-fuelled for two centuries. The building has a surface of machinery to significantly reduce its environmental 11,000 m2, which will be entirely assigned to house impact. the activities of the Family School. The Group has always tried to reinvest in the mar- The Group’s growth is based on the hard work of kets in which it provides its services. In addition its employees all over the world, both ashore and to the offer of goods and services, a part of the on board. Group’s profits is earmarked for charities and cul- The Grimaldi Group has chosen to be strongly tural organisations, both within Italy and abroad. rooted in all the main European countries in which The Grimaldi Foundation Onlus (non-profit charity), it operates. For this reason, out of its approximately which was founded in 2007 at the behest of Ema- 16,000 employees all over the world, around 12,600 nuele Grimaldi, is the leading private family foun- are Europeans, while the remaining 3,400 come dation in the Centre and South of Italy for amounts from countries such as the USA, the Philippines, disbursed; since 2018, it has increased its role in so- India, South America and Africa, attesting to the in- ciety, changing from a Disbursement Foundation to ternational and multi-cultural vocation of the Group. a Management Foundation. The majority of the suppliers that the Group works with are also European, 41% of which are Italian, 22% The Foundation, which had assets of € 22.5 million Finnish and 29% from other European countries. in January 2018, is financed mainly by donations from Emanuele Grimaldi and other members of the With this Report, we are renewing our endorsement Grimaldi family. Moreover, every year, it benefits of the principles set forth by Agenda 2030 for sus- from a grant from the Group, which is a percentage tainable development adopted on 25 September of net profits, and from the contributions that many 2015 by the General Assembly of the United Nations, benefactors decide to donate to its activities. All the expressed through active support for achievement assets and income are used for charitable purposes of the Sustainable Development Goals for 2030.

12 July 2019

Gian Luca Grimaldi President

2018 Sustainability Report 5 2 Methodological information

he Grimaldi Group Sustainability Report, as at 31 Group’s objectives in relation to sustainability per- TDecember 2018, was prepared in compliance formance and recognition of results achieved. The with the GRI “Sustainability Reporting Standards” fi gures were calculated individually on the basis defi ned in 2016 by the GRI - Global Reporting Initia- of the general accounting fi gures and the Group’s tive in accordance with the “core” application level, other IT systems. In the case of estimates, the replacing the G4 Sustainability Reporting Guide- method used to quantify indexes is provided. The lines, starting from the fi nancial statements pub- fi gures related to human resources refer to both lished after 1 July 2018. the Group’s internal employees and temporary em- ployees, i.e. those who are contractually external to This is the fourth Sustainability Report the Group the group yet directly involved in its activities. has prepared and represents a continuation of the process of transparent reporting and management The Report shows, if not otherwise indicated, the of sustainability issues started in 2015. situation related to the 3-year period 2016-2018, in order to provide readers with a point of comparison The identifi cation of the signifi cant aspects to be in- for economic, social, environmental and govern- cluded within the document involved a materiality ance performance. After reporting on the indicators process, in line with the provisions of the aforemen- regarding the new GRI Standards, all the fi gures tioned guidelines and in consideration of the prin- for 2016-2018 were restated in light of the new re- ciples of stakeholder-inclusion, completeness and quirements of the reporting standard. Any relevant analysis of the relevant context. limitations are indicated within the document on a The “GRI Content Index”, which summarises the case-by-case basis. content of the Report in reference to the GRI indica- For more information on the perimeter, please see tors, is provided at the end of this document. “The reporting perimeter” paragraph in the Ap- The document was prepared on the basis of the pendix.

6 2018 Sustainability Report A year in a page: 3 our 2018

Employees subdivided by geographical area Agency Other and logistics operating Italy Other EU countries services sources € 233 million € 124 million 45% 34%

Non-EU Freight rates (maritime Income from and intermodal tourism 21% transport) € 2.668 billion € 19 million

Employees Shore personnel by gender 33% 12% Maritime personnel Men 67% 88% Women over 4.1 16,000 27,000 MILLION Certifi ed suppliers ISO 9001 (90%) TOTAL GROUP INDIVIDUALS PASSENGERS ISO 14001 (26%) PERSONNEL EMPLOYED OHSAS 18001 (17%) in related industries*

18 AWARDS AND RECOGNITIONS granted to the Group and its companies for their excellent performance in the transport of goods and passengers € 2,190,360 spent in 2018 by the SO2 -13 % CO2 -2 % GRIMALDI FOUNDATION ONLUS SO2 emissions/nautical mile CO2 emissions/nautical mile on social projects (2018 vs 2016) (2018 vs 2016)

*The fi gure for related industries was calculated using the employment multiplier of 1.72 recorded in the document “The Report on the Maritime Economy – Maritime cluster and development in Italy” (Centro Studi Investimenti Sociali - CENSIS - Centre for Research into Social Investment – for Federazione del Mare [Italian Maritime Federation], 2015) 2018 Sustainability Report 7 4 The Grimaldi Group A multinational integrated logistics company, specialized in the maritime transport of vehicles, rolling cargo, containers and passengers

he Grimaldi Group is a perfectly integrated to these characteristics, the Group is well known Tpolycentric multinational business, which invests in the market as a world leader in Ro-Ro transport to keep its fl eet modern, introduce new sustainable and as a reliable partner for customers ranging from technologies and develop a network of port termi- nals. The Group mainly uses owned ships to trans- multinational car and rolling stock manufacturers to port freight directly acquired on the market. Thanks road haulage companies.

Naval Fleet

Commercial GRIMALDI GROUP agencies INTEGRATED MODEL

Port terminals and logistics companies

At the end of 2018, the Group operates a fl eet of Northern Europe, in the Baltic Sea and in West Af- over 130 ships, 116 of which are directly owned. The rica – and in various logistics companies in diff erent Group’s proprietary ships have an average age of countries. approximately 13 years (signifi cantly lower than the The Group’s agency network includes over 90 com- average for the industry and the vessel’s useful life). mercial agencies (of which 32 are directly owned) in These are modern and technologically-advanced ships, deployed on regular lines, in a network con- Europe, Africa, North and South America, providing necting over 130 ports in 47 countries and 4 conti- extensive penetration in all the main markets. nents. The following diagram shows the Group’s struc- The fl eet’s ships are managed by six Group com- ture, summarising the main Companies divided ac- panies, while in terms of port and inland logistics, cording to their business (shipping, logistics compa- the Group controls or has signifi cant equity inter- nies – including companies that manage ports and ests in 20 port terminals – in the Mediterranean, in terminals – maritime agencies).

8 2018 Sustainability Report Cap.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. Subholding of a Sweden Belgium Italy Italy group of companies 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 Parent Company Grimaldi Group S.p.A. mainly ator. In this regard, it also acts as an agent selling acts as the holding company, but continues, albeit passenger tickets for the Group’s vessels. in a residual manner, to be the main contractor for certain automotive manufacturers and also pur- Below is a breakdown of the Group's 2018 rev- sues its business as a travel agency and tour oper- enue by type of load.

22.5% Breakdown of revenue (€) by type of load

7.6% 4.6% 14.0%

30.6%

10.8% 8.2%

1.6%

Revenue New Used New Used Trailer/ Passengers Containers General cars cars RoRo RoRo Mafi cargo

2018 Sustainability Report 9 Gestisce le linee marittime dedicate Atlantic Container prevalentemente al traffico container che Line AB (ACL) collegano Nord America, Nord Europa ed Cap.4 - The Grimaldi Group A Africa Occidentale;

The Group’s vessels operate on the following routes: Specializzata nel trasporto passeggeri, nel trasporto merci rotabili tra il Nord Europa ed Grimaldi Euromed il Mediterraneo (Euromed), nelle SpA Autostrade del Mare nel Mediterraneo B (Short Sea), e nel trasporto merci tra il Mediterraneo e il Nord America (Car A B C D E F carriers / MED-AME); Opera nel trasporto merci rotabili e Grimaldi Deep Sea containerizzate tra i porti del Nord Europa, SpA Africa Occidentale e Sud America C (Deepsea), e nel trasporto merci tra il Mediterraneo e il Nord America (Car carriers / MED-AME); Opera nel trasporto merci e passeggeri tra i paesi che si affacciano sul mar Baltico Finnlines Plc (Finlandia, Germania, Svezia, Danimarca, D Russia, Estonia e Polonia) nonché Spagna e Gran Bretagna.

Effettua servizi di cabotaggio (merci e E Minoan Lines S.A. passeggeri) tra Creta ed il continente greco.

è la società armatrice di 7 navi impiegate Malta Motorway of prevalentemente su collegamenti con Malta, the Sea (MMOS) F Sicilia e Grecia.

ATLANTIC CONTAINER It manages maritime lines mainly dedicated to container traffi c that connect A LINE AB (ACL) North America, Northern Europe and West Africa. It is specialised in the transportation of rolling freight between Northern Europe and the Mediterranean (Euromed), on the Motorways of the Sea in the Medi- GRIMALDI EUROMED terranean (Short Sea), and in freight transport between the Mediterranean and B SPA North America (Car carriers / MED-AME), as well as in the transport of passen- gers in the Mediterranean. It operates in the transport of rolling freight and containers between the ports of Northern Europe, West Africa and South America (Deepsea), and in GRIMALDI DEEP SEA the transport of goods between the Mediterranean and North America C SPA (Car carriers / MED-AME), as well as in the transport of passenger in the Mediterranean.. It operates in the transport of goods and passengers between countries on D FINNLINES PLC the Baltic coast (Finland, Germany, Sweden, Denmark, Russia, Estonia and Poland), as well as Spain and Great Britain. It provides short-sea shipping services (goods and passengers) between MINOAN LINES S.A. E Crete, the islands of the Cyclades and continental Greece. MALTA MOTORWAYS This company owns seven ships used mainly for connections between F OF THE SEA (MMOS) Malta, Sicily and Greece.

10 2018 Sustainability Report Cap.4 - The Grimaldi Group

Guido and his brothers Luigi, Mario, Aldo and Ugo Grimaldi create a new shipowning company, 1947 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 history The Group acquires ACL (Atlantic Container Line), the leading Ro-Ro operator for connections between The Grimaldi Group, through its stakeholders Europe and North America (later delisted from the 2001 and all its staff , has had deep roots in southern Oslo stock market). Italy for several generations. With expansion, The Group sets up Malta Motorways of the Sea both organic and through acquisitions, these (which off ers connections between Italy and roots have grown, so much so that the business Malta), after the state-controlled company Sea 2005 has become multinational and global, main- Malta goes bankrupt. taining its headquarters in Naples. The connection between the Grimaldi Family The Group acquires control over Finnlines, a and the sea dates back to 1348, the year in Finnish company listed on the Helsinki Stock Market and a leader in the Baltic and North Seas. which the chronicles of the Kingdom of Naples Finnlines off ers freight and passenger transport 2006 tell us that Queen Giovanna I gave the brothers services in a geographic area with the highest Rajinerio, Richerio and Perino de Grimaldis a economic growth in Europe. precious solid gold relic, as a guarantee for the hire of three ships. The Group acquires control over Minoan Lines, a In the second half of the 1800s, Gioacchino Greek company listed on the Athens Stock Market 2008 Lauro, a ship owner from Sorrento, founded a and a leader in the ferry and Ro-Ro sector. steamboat company that became one of the fi rst Italian joint stock companies in the shipping The company name is changed to “Grimaldi Group SpA” after a resolution made on February 2, 2015 sector. by the Shareholders’ Meeting. 2015 Out of Gioacchino’s children, Achille inherited The Group’s best year ever in terms of economic his father’s passion for the sea and his business performance. sense, becoming the largest European ship owner between 1960 and 1970, while Amelia, Grimaldi Group SpA acquires 100% of the equity on the other hand, married the lawyer and land investments of Finnlines. 2016 owner Giovanni Grimaldi who, although a cul- Publication of the Group’s fi rst Sustainability Report. tured man, lacked the seagoing spirit of his an- Launch of the new direct service for Mexico for cestors. the transport of rolling freight, project cargo and It was Amelia, Giovanni’s wife, who gave her chil- automobiles. 2017 dren a passion for the sea and asked her brother Opening up the Heraklion - Cyclades Islands and Chania - Piraeus routes. Achille to take her son Guido under his wing. Delivery to Grimaldi Euromed of two new ships, MV Grande In 1947, Guido and his brothers Luigi, Mario, Aldo Halifax and the MV Grande Torino. and Ugo Grimaldi founded a new shipping com- The Group fi nalises the construction order for 12 new 2018 pany, buying a Liberty ship, a cargo vessel used vessels for a total investment of USD 800 million. by the American fl eet during World War Two, and

2018 Sustainability Report 11 Cap.4 - The Grimaldi Group

1947 - 2018 passion for the sea and good business sense. The birth and development of one of the most important private European fleets

starting Fratelli Grimaldi SpA, that would become However, on 5 September 2010 the Grimaldi family one of the largest privately-owned fleets in Europe. was hit hard. Guido Grimaldi passed away peace- Commercial activities grew constantly during the fully at his home, aged nearly 93, and the Group 1950s and 60s. and Italian shipping lost one of the key figures in their shared history. Despite the loss, the Group In 1970, the car carrier Warrington began the first continued to implement the plan to strengthen its regular service transporting Fiat automobiles from connections, starting the Mediterranean Express Italy to the British market. The strategic agreement service, which returned to the historic route be- signed between Fratelli Grimaldi SpA and the car tween the Mediterranean and Western Africa. manufacturer based in Turin represented a stra- tegic opportunity for growth for the company, which In 2017 the Group further strengthened its leader- in this way began to create a complex network of ship in maritime connections over the ocean thanks commercial routes, initially in the Mediterranean to the launch of the new direct service to Mexico and later in Europe, the Baltic Sea, Western Africa for the transport of rolling freight, project cargo and and South America. automobiles, as an extension of the regular ser- vice which connects the Mediterranean to North The glorious Eighties represented another turning America, operating very successfully since 2015. point in the Company’s development. In fact, the Neapolitan shipping company began an impressive In October 2017 the subsidiary Minoan Lines signed reconversion programme that led to the gradual an agreement with the Greek company Attica Hold- abandoning of the oil trade in favour of specialisa- ings for which it undertook to divest the entire eq- tion in ferries and automobile transportation. uity package (48.53%) of Hellenic Seaways, while the counterparty undertook to transfer the MV The Grimaldi Group closed out the 1900s by imple- Highspeed 7 to Minoan Lines and the MV Superfast menting a plan to acquire new ships and to trans- XII to Grimaldi Euromed. The agreement became form itself from a shipping company that merely effective in June 2018, after receiving the approval owned and operated ships and managed maritime of the Greek Antitrust commission. traffic, to a logistics operator. In this way, the acqui- sition of terminals and hubs in the main ports linked The MV Highspeed 7, renamed Santorini Palace, by the Group's ships began, from Northern Europe has already started to operate on the Heraklion to the Mediterranean and the coasts of Africa. All – Cyclades Islands route from 13 June 2018, with this in order to make traffic faster and goods more a daily itinerary. The MV Superfast XII, renamed secure, with the use of owned structures inde- Mykonos Palace, is deployed on the Chania – Pi- pendent from those of the ports. raeus route. Starting in 2000, the company began a process to In 2018, as part of the programme to upgrade and acquire various maritime companies, including ACL, expand the fleet, the Group added two new ships to Finnlines and Minoan Lines, achieving international Grimaldi Euromed, the MV Grande Halifax and the leadership in the Ro-Ro sector. MV Grande Torino, built at the Chinese shipyards,

12 2018 Sustainability Report Cap.4 - The Grimaldi Group

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

Jinling (last of the 3 ships ordered) and Yangfan This refers to an overall investment of over USD (the first of the new series) respectively. The 6 re- 800 million. The new “Grimaldi Green 5th Genera- maining ships under construction, representing an tion” ships will have a double garage load capacity investment of over USD 300 million, will be deliv- compared to the larger ships operated by the Group ered by the Yangfan shipyard by 2020. In addition, and triple compared to the previous generation of in June 2018, the Group finalised the order from the Ro-Ro vessels, but with the same fuel consumption. Chinese shipyard Jinling for the construction of 12 During port stopovers, the energy requirements on new generation Ro-Ro units (9 of which will be op- these ships will be met by lithium batteries, which erated by Grimaldi Euromed in the Mediterranean, recharge during navigation by solar panels. Fossil while the remaining 3 “ice-class” units will be pur- fuel will however be used during navigation. The chased by Finnlines and utilised in the Baltic Sea). new units will be delivered as from 2020.

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 in- the world’s leading Ro-Ro shipping companies. As tegration of its business. The fundamental elements such, the Group is a reliable partner for customers of this strategy, such as monitoring of costs and the ranging from multinational automobile and rolling multi-annual policy of re-investing profits generated, stock manufacturers to road haulage companies. are combined with constant attention to energy ef- The Group also holds an important position in pas- ficiency, so as to limit the environmental impact of senger transport (Ro-Pax) at both the national and vessels, and social responsibility, which is shown in European level. the annual allocation of a portion of profits to the non-profit Grimaldi Foundation Onlus. The Group’s competitive advantages derive from

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

2018 Sustainability Report 13 Cap.4 - The Grimaldi Group

Knowledge Reinvestment Flexibility Commercial Energy Social of the of Pro ts of the Fleet Coverage Ef ciency Sensitivity Business

At the basis of the Group’s strategy is the com- The business model aims also to guarantee 01 mitment to reinvest a large part of its profits, 04 commercial coverage of multiple geographic to guarantee the efficacy and efficiency of its areas (Mediterranean Sea, Northern Europe, operations, while simultaneously maintaining Baltic Sea, West Africa, North and South long-term competitiveness within the market. America). The year closed with a net consolidated profit Over the last few years, the network of services of over € 200 million, down compared to 2017, offered has been extended and strengthened mainly due to the increase in the cost of fuel. through the opening of new routes and the in- EBITDA in 2018 came to € 537 million, with a auguration of new Motorways of the Sea. decrease of 11.6% compared to 2017. In June 2018, the Group finalised the order with Another line of the business model is in-depth the Chinese shipyard Jinling for the construc- 02 knowledge of markets and the business, tion of 12 new latest-generation Ro-Ro ships, 9 which translates into flexibility and an ability of which will be operated by Grimaldi Euromed to quickly react to changes, whether regula- in the Mediterranean, while the remaining 3 tory, geopolitical, or competitive. “ice-class” units will be purchased by Finnlines With the strength of a century behind it, the and deployed in the Baltic Sea. Group has consolidated over time consid- Another guideline of the model is a constant erable experience in the maritime transport 05 attention to energy efficiency. In fact, the sector, overcoming crises and adapting its or- Group recently invested in the construction ganisation to the requirements of the market. of new “Grimaldi Green 5th Generation” ships, The third guideline in the business model is with twice the garage load capacity compared 03 the ability to design and deploy vessels in an to the largest ships operated by the Group and extremely flexible way in terms of cargo mix three times compared to the previous gener- and routes served, thereby making them less ation of Ro-Ro vessels, but with the same fuel exposed to volatility in any single market. consumption. During port stopovers, the en- At present, the business can count on a fleet of ergy requirements on these ships will be met 130 ships, 115 of which directly owned, with an by lithium batteries, which recharge during average age of approximately 13 years (signif- navigation by solar panels. Fossil fuel will how- icantly lower than the average for the industry ever be used during navigation. and the useful life of the ships). These are The last guideline of the business model is modern and technologically-advanced ships, 06 social responsibility, which translates in the deployed on regular lines, in a network con- annual allocation of a portion of profits to the necting over 130 ports in 47 countries and 4 non-profit charity Grimaldi Foundation Onlus, continents. which after 10 years of work has become a The upgrade of the fleet goes hand in hand reference point in Naples and Southern Italy. with that of containers and handling and lifting The foundation not only manages projects equipment in favour of families in difficulty but also dis- burses financing to meritorious associations or bodies.

14 2018 Sustainability Report Cap.4 - The Grimaldi Group

4.3 Our Mission and our Values

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

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

MISSION

VISION VALUES

VISION VALUES In order to achieve its mission, the Group works to To achieve its objectives, the Grimaldi Group is in- continue along the path to strategic growth, focussed spired by the following principles: on developing passenger and freight traffic and port • Respect for all legal and regulatory provisions in ef- terminals, with the commitment to offer the market fect in the countries in which the Group operates; the best guarantees for efficient corporate manage- • Honesty and integrity in business relationships; ment, and maintaining a constructive dialogue with • Proper conduct in relations with customers and the larger community of stakeholders, with an eye to quality in the services it provides; creating sustainable growth. • Impartiality; • Respect for its employees and contract workers, and for people in general; • Protection of the environment and safety, also in terms of workplaces.

2018 Sustainability Report 15 Cap.4 - The Grimaldi Group

The Group’s headquarters in Naples

The values that inspire the Grimaldi Group’s way of working and how it interacts with all those people 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 minimise environmental impacts and guarantee maximum safety levels.

ENVIRONMENT Manage and mitigate the environmental impacts from Group activities.

16 2018 Sustainability Report Governance system 5 and business ethics

he governance system adopted by the Grimaldi based on the traditional organisational model, con- TGroup is focused on maximising value, con- sisting of the Shareholders’ Meeting, the Board of trolling corporate risk and providing transparency Directors, the Board of Statutory Auditors, the in- to stakeholders. dependent auditing firm, and the Supervisory Body The governance model of the Parent Company is (pursuant to Italian Legislative Decree 231/2001).

SHAREHOLDERS’ MEETING

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

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

The highest governing body within the Group consists of:

GRIMALDI GROUP SPA BOARD OF DIRECTORS, BY GENDER U.M. 2018 2017 2016 Men no. 4 4 4 Men % 100 100 100

GRIMALDI GROUP SPA BOARD OF DIRECTORS, BY AGE U.M. 2018 2017 2016 >50 years no. 4 4 4 >50 years % 100 100 100

2018 Sustainability Report 17 Cap.5 - Governance system and business ethics

The Code of Conduct defi nes the general standards behind company ethics

5.1 Model 231 and the Code of Conduct

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

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

18 2018 Sustainability Report Cap.5 - Governance system and business ethics

During 2018, the Supervisory Body did not receive havioural norms to follow in managing the daily ac- any notifications. tivities of all Group companies, useful for properly An integral part of the 231 Model is the Group’s and efficiently achieving company objectives in the Code of Conduct, which was adopted with the be- maritime transport sector, which involves ever-in- lief that ethical business actions favour success for creasing competition and complexity worldwide. all companies, contributing to spreading a culture of The Code must be followed by the Group’s top-level reliability, correctness and transparency in the activ- figures, all personnel (administrative and maritime), ities performed to achieve company goals. and all stakeholders with which the Group has re- The Code of Conduct defines the general standards lationships (external contractors, buyers, partners, behind company ethics, providing a structure of be- suppliers, agents, customers, etc.).

5.2 Compliance

The Grimaldi Group works in compliance with regu- to comply with the ethical standards for business in lations, both the national laws applied in all the geo- their work, as established in the Code of Conduct. graphic areas in which it operates, and the interna- Some of the Group’s companies are involved in tional laws established by the International Maritime various legal cases involving civil/administrative 2 Organization (IMO) . disputes. A review of pending disputes as at 31 De- The Group’s activities are carried out in a socially cember 2018, also in the light of the insurance in responsible, impartial and ethical manner, adopting place, does not reveal any significant contingent li- policies to ensure equity and properness in the abilities, to the extent that would require provisions management of business relationships, guaran- in addition to the amount already recognised in the teeing worker safety, and promoting and encour- consolidated balance sheet. aging ecological awareness, while fully complying Concerning significant environmental and social with the laws that apply in the countries in which the disputes that occurred in 2018, please see page 61 Grimaldi Group has a presence. (par. On-board accident rate). As regards the pro- All business relationships are built on integrity and ceeding of the AGCM (Autorità Garante della Con- loyalty, working to avoid conflicts of interest. To correnza e del Mercato - the Italian Antitrust Au- achieve this objective, the Grimaldi Group requires thority), initiated in 2014, no updates can be made all of its directors, managers and other employers with respect to last year’s Report.

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

2018 Sustainability Report 19 6 Our sustainability strategy

ur sustainability strategy has the objective of cre- Our way of doing business is focused on creating Oating value for our customers and passengers, for value for the Group and its main stakeholders. We the communities in which we operate, for our staff and are aware that operating eff ectively and effi ciently depends on building stable and positive relation- the companies in the Group, while simultaneously min- ships and carefully managing the impacts caused imising our environmental impacts. to the external environment. Proactively managing Operating in a sustainable manner is a strategic priority these aspects makes it possible to contribute to the for us, and to that end we have taken a path that in- Group’s growth in the relevant geographic areas creasingly integrates sustainability issues with business. and activate opportunities to create shared value. To create shared value, it is necessary to: TE SHARED V • Develop and execute innovative projects that REA ALU contribute to improving the maritime trans- C E port sector, increasing the capacity to meet market requirements (door-to-door); Provide quality services that contribute • Continue constant communication to the creation of shared value with all stakeholders, to create better conditions for their in- volvement; • Pay the utmost attention to the people who work for us, in- € vesting in safety (both ashore and onboard) and in their ECONOMIC ENVIRONMENTAL SOCIAL PERFORMANCE PERFORMANCE PERFORMANCE professional development; for customers for our planet for our employees and • Protect the environment, and lenders the communities in by implementing projects which we work that help to reduce our envi- in order to ronmental impact; • Provide quality services Meet the growing Reduce the Contribute to with added value to our cus- need for sustainable environmental impact our employees’ tomers. and intermodal of our activities, professional growth The Group, with the aim of in- transport options helping to protect the and development of planet the communities in creasing its commitment to doing which we work business sustainably, is committed to contributing to the achievement of 9 of the 17 Sustainable Development Goals (SDGs), defi ned in the context of

20 2018 Sustainability Report Cap.6 - Our sustainability strategy

the United Nations Agenda 2030 for Sustainable ment of KPIs for sustainability can help the Group to Development and which aim to make a decisive measure the contribution it makes to the achieve- improvement in the lives of all humanity. Measure- ment of the UN goals as identified.

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 affordable, 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

2018 Sustainability Report 21 Cap.6 - Our sustainability strategy

6.1 Our stakeholders and channels for dialogue

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

Personnel

Environment Owners

Trade Commercial associations customers

Communities Passengers

Suppliers and Institutions Agents

Also during 2018, the Group was committed to com- magazine Grimaldi Magazine Mare Nostrum, which municating with its stakeholders in a number of ways, contains travel information and articles about the main through various channels used either regularly or in a connected tourist areas; the publications Finnlines targeted manner. News and Minoan Wave, which can both be down- Among the main tools used regularly are: the issuing loaded from the websites of the two Group companies of press releases containing news and promotions; and which provide not only in-depth information on the publication of the quarterly magazine Grimaldi these subsidiaries, but also cultural and tourist tips. All News, which provides news about the Group, as well press releases, as well as the magazines and the most as itineraries for all the regular services off ered and important articles published in the Italian and foreign contact information of Grimaldi agencies and offi ces; press, can be consulted and downloaded from the the multilingual half-yearly publication of the on-board Group’s institutional website (www.grimaldi.napoli.it).

22 2018 Sustainability Report Cap.6 - Our sustainability strategy

6.2 Group highlights

JANUARY spectively. They are 225 metres long, have a gross 10 A ceremony for the delivery of the Pure Car & Truck tonnage of approximately 54,000 tonnes and a Carrier Grande Halifax was held at the Chinese Jin- carrying capacity of around 3,000 passengers, with ling shipyard in Nanjing. This is the last unit of an 2,400 m2 of vehicle space and around 3,000 linear order made by the Neapolitan Group for the con- metes for heavy vehicles. struction of three identical ships at the Jinling ship- In the mid-ship section, spanning approximately 29 yard. metres, around 600 linear metres will be available The Grande Halifax has a length of 199.90 metres, for extra heavy goods, 80 beds in new passenger a width of 32.26 metres, a gross tonnage of 63,000 cabins, two lounges with a total capacity of 450 tonnes and a cruising speed of 19 knots. seats and a new “Family self-service” restaurant From an environmental perspective, the Grande that will have around 270 seats. Furthermore, sig- Halifax is a highly efficient ship. It is in fact fitted nificant modernisation work will be done on the with an electronically-controlled Man Diesel & existing public areas, including the creation of a Turbo engine, as required by the new standards themed restaurant. Lastly, the safety equipment for the reduction of nitrogen oxide (NOx) emissions required to cope with the increase in passenger and with a scrubber for cutting sulphur oxide (SOx) transport capacity will be put in place. emissions. Finally, it complies with the most recent At the end of the upgrading project, overseen by standards in terms of treatment of ballast water. Fincantieri’s Ship Repair and Conversion Depart- ment, every ship will be around 254 metres long, FEBRUARY will have a gross tonnage of around 63,000 tonnes 14 At Villa Niscemi in Palermo, the Mayor of the city, and will be able to host 3,500 people, with 3,000 Leoluca Orlando, conferred honorary citizenship m2 of vehicle space and over 3,700 linear metres to Eugenio Grimaldi, son of the Group’s CEO, Ema- for heavy goods. nuele Grimaldi. This was due to “Eugenio’s impor- From a technological perspective, the implemen- tant contribution in the growth and recovery of the tation of cutting-edge solutions aimed at reducing area and the port, combined with his equestrian the environmental impact and saving energy are activity that has led to great success”. During the planned. These include the installation of scrub- ceremony, Mayor Orlando mentioned the Group’s bers for exhaust gas purification and a lithium mega international activity and Eugenio Grimaldi’s com- battery system to power the ship when stationary mitment to connecting Sicilian ports with Italy, in port, without the need to turn on the diesel-gen- Greece, Morocco, Spain, Tunisia and Malta thanks erators, thereby reaching the objective of zero to over 120 Motorways of the Sea. emissions in port promoted by the Grimaldi Group. MARCH 08 The Group announced that it had moved forward 05 The Grimaldi Group and Fincantieri announced the with reorganising its presence in the port of Salerno, signing of a letter of intent for the lengthening and one of the main hubs in the Mediterranean, in col- refurbishment programme of the two flagships, laboration with the Central Tyrrhenian Sea Port Cruise Roma and Cruise Barcelona. The construc- System Authority, in order to better manage the tion of the mid-ship sections to be inserted in the growing trailer traffic in the port of Salerno. two cruise ferries is planned for 2018, while the Indeed, the port handles various types of traffic completion of operations is expected by summer in an extremely small space. That is why a new 2019 at the Palermo facility. trailer parking area has been made available to the The two units, operating on the daily Civitavec- Group’s clients, which is around 15 km away from chia-Porto Torres-Barcelona route under the the port, thereby allowing the operational areas “Grimaldi Lines” banner, were built by Fincantieri inside the port to be freed up and reducing the in the Castellammare di Stabia shipyard and deliv- stay of the semi-trailers that land every day from ered to the Neapolitan Group in 2007 and 2008 re- Grimaldi Group ships to less than 24 hours.

2018 Sustainability Report 23 Cap.6 - Our sustainability strategy

Mare Nostrum Awards is the international journalism award sponsored by the Grimaldi on-board maga- zine Mare Nostrum, dedicated to promoting maritime travel in the Mediterrane- an and, in particular, to raising awareness about the Motorways of the Sea. Professional journalists, publicists, authors in general and photographers who have published a work on the Motorways of the Sea are invited to participate, hi- ghlighting the advantages of these connections in economic, social and environ- mental terms. The 2018 Mare Nostrum Awards gave out equal prizes to the top five winners, for a total of € 50,000. The special prize “Cavaliere del Lavoro Guido Grimaldi”, established by the Gri- maldi family, was awarded to the Rai journalist and photographer, Enzo Cappucci.

APRIL twice the efficiency measured in consumption per 18 The christening ceremony of the Grimaldi Group’s tonne transported. Grande New York ship was held in the port of New These are the first examples of a new series of hy- York-New Jersey. The Pure Car & Truck Carrier unit brid Ro-Ro ships, i.e. vessels which use fossil fuel is deployed on the route between the Mediterra- when at sea and electricity during port stopovers, nean and North America. The second of an order thereby guaranteeing “zero emissions in port”. of three identical vessels, the Grande New York As regards sulphur emissions, special devices on has a length of 199.90 metres, a width of 32.26 board combine the sulphur emitted by the propul- metres, a gross tonnage of 63,000 tonnes and a sion cylinders with the salt contained in seawater, cruising speed of 19 knots. The new vessel flying exploiting the natural chemical reaction to produce the Italian flag can carry 6,700 CEU (Car Equivalent chalk, which can be used on land or disposed of in Units) or, alternatively, 4,000 linear metres of rolling nature. cargo and 2,500 CEU. It is also extremely efficient MAY from an environmental perspective. Its electronical- 02 The Grimaldi Group enhanced the Salerno-Catania ly-controlled Man Diesel & Turbo main engine com- connection by extending the service to passengers plies with the new standards for the reduction of also. Indeed, in addition to the daily departures nitrogen oxide (NOx) emissions, while its scrubber from both ports which are already guaranteed by cuts sulphur oxide (SOx) emissions. Lastly, it has a the Ro-Ro ships, Euroferry Malta and Eurocargo ballast water treatment system that will allow it to Napoli, a further two Ro-Pax vessels, Euroferry comply with future legislation. Olympia and Euroferry Egnazia began to operate 26 As part of its programme to boost and modernise evening departures six days a week from the ports the fleet that was already anticipated in previous of Salerno and Catania. months, the Grimaldi Group signed an agreement The twin Ro/Pax ships, Euroferry Olympia and Eu- for the construction of six new Ro-Ro category ships roferry Egnazia, each have a load capacity of 170 with the Jinling shipyard, the first in an order of 12 spaces for accompanied trucks, as well as 600 pas- units, for an investment of over USD 400 million. sengers and 450 cars. They have interior, exterior The new units, which are expected to be deliv- and superior exterior cabins with air conditioning, ered from 2020, will be 238 metres long, 34 me- a lounge, a bar, a self-service restaurant and a slot tres wide and will have a gross tonnage of 64,000 machine area. tonnes. They will be able to transport over 7,800 The two Ro-Ro ships, Euroferry Malta and Euro- linear metres of rolling stock, equal to 500 trailers. cargo Napoli, on the other hand, have a load ca- The garage loading capacity of these ships is twice pacity of 125 trailers and 270 cars, in addition to 40 that of the largest ships currently operated by the drivers. Thanks to the deployment of the Euroferry Neapolitan group and three times that of the pre- Olympia and Euroferry Egnazia, the frequency of vious generation of Ro-Ro ships, but with the same the Motorways of the Sea to/from Sicily has thereby fuel consumption at the same speed: this means been enhanced with a total of 24 departures on the

24 2018 Sustainability Report Cap.6 - Our sustainability strategy

The cutting of the ribbon during the christening ceremony of the Grande Halifax

Salerno-Catania axis and vice versa, improving de- operated with the high-speed catamaran Santorini livery times for the transport companies and signif- Palace. With a length of 85 metres and a width of icantly increasing ship spaces. 21 metres, the unit can transport 1,160 passengers, 16 During a ceremony held in the Canadian port of 38 crew and 100 vehicles at a cruising speed of 38 Halifax, the Grande Halifax ship was christened, knots. It is one of the most luxurious Ro-Ro catama- the third and last unit of the order for twin ships, of rans in Europe, complete with cutting-edge safety which the Grande New York was also part. and navigation systems and recently updated The ceremony took place in the presence of a cruise ship services that allow people to travel in large delegation consisting of civil and maritime style and comfort. authorities, including the Mayor of Halifax Michael Savage, members of the Canadian Parliament, the The connection was inaugurated with a ceremony honorary Consul of Italy in Halifax, Marilisa Be- in the port of Piraeus, which saw the participation nigno, port operators, clients and managers of the of national authorities and local political and reli- Grimaldi Group. gious institutions, the media and Minoan Lines top 29 The Grimaldi Group announced improvements in management. the maritime connections on the Adriatic routes JULY between Italy and Greece. The loading capacity in terms of passenger transportation on the multi-day 04 During a short ceremony held in Rome at the Brindisi - Igoumenitsa - Patras connection has been residence of the Finnish Ambassador, Emanuele increased, by replacing the Ro/Pax Euroferry Eg- Grimaldi, CEO of the Grimaldi Group, President nazia and Euroferry Olympia ships with the Flor- and CEO of Grimaldi Euromed and President and encia and Cartour Gamma vessels. The first unit CEO of the subsidiary, Finnlines, was conferred the has a load capacity of 2,250 linear metres, as well honour of “Commander of the Order of the Lion” of as for 1,000 passengers and 450 cars. The Ro/Pax Finland. ship, Cartour Gamma, has a loading capacity of The Finnish Ambassador in Italy, Janne Taalas, 2,300 linear metres, as well as for 1,000 passen- gers and 460 cars. Both have internal and external said that the honour, which was bestowed by the cabins, all with air conditioning and private bath- President of the Republic of Finland, Sauli Niinistö, rooms, a lounge, a bar and a self-service restau- recognizes the great commitment of Emanuele rant. Grimaldi in developing maritime transport to and Furthermore, for the summer period, the connec- from Finland, via the company Finnlines, to support tion is extended to the port of Corfu. the national economy. JUNE The honour of the “Commander of the Order of the 13 The Grimaldi Group sister company Minoan Lines Lion” is given to people who have distinguished launched a new daily connection between Her- themselves on Finnish territory, of which there are aklion (Crete) - Santorini - los - Paros - Mykonos, very few foreign nationals.

2018 Sustainability Report 25 Cap.6 - Our sustainability strategy

OCTOBER the possibility of hosting 50 drivers. 04 In line with its Corporate Social Responsibility With this strengthening measure, the Grimaldi policy, the Grimaldi Group announced its commit- Group attests to its strong desire to increasingly ment to strengthen its presence in Europe by in- invest in the Sardinian market. creasing its personnel from the “Old Continent”. NOVEMBER Following requests received from the European 20 During the 2018 ALIS (Logistics Association for Commission, some Member States and the ETF Sustainable Intermodality) General Assembly, the (European Transport Federation), the Grimaldi President Guido Grimaldi focused his report on Group announced its decision to guarantee its the strategic objectives for the upcoming season, passenger ships operating among EU ports the full which included — first and foremost — the agree- application of the “Athens Declaration”, employing ment reached with two prestigious banks, Medi- exclusively European personnel. ocredito Centrale - Banca del Mezzogiorno and In this regard, the Grimaldi Group announced that it Monte dei Paschi di Siena, based on which ALIS- has begun replacing the remaining 2% of staff from member companies based in Southern Italy can non-EU countries (about 40 employees holding benefit from advantageous borrowing terms and skilled positions) on its mixed cargo/passenger time frames for growth and development projects. ships, counting on being able to reach its objective To this end, a “tranched cover” fund of up to € 500 of 100% European crew on passenger ships oper- million has been set up, € 100 million of which has ating between European ports by the end of 2018. already been allocated, thus guaranteeing financial 05 The annual event organized by the Grimaldi Group, coverage for the loans obtained by companies op- XXII Euromed Convention from Land to Sea, was erating in integrated logistics. held between 5 and 7 October in Lagonissi, close 28 The Grande Torino Pure Car & Truck Carrier was to Athens. delivered to the Grimaldi Group from the Chinese The growth figures officially opened this interna- Yangfan shipyard. This is the first unit of an order tional event: 19 latest-generation ships in the pipe- for seven sister vessels made by the Neapolitan line for the transport of rolling stock, 6 ships for Group from the Yangfan shipyard. The Grande To- mixed cargo and passenger transportation which rino has a length of 199.90 metres, a width of 36.45 became operational in 2018, 1 million more pas- metres, a gross tonnage of 65,255 tonnes and a sengers transported in 2018, and 16,000 people cruising speed of 19 knots. The ship, which flies the employed by the Grimaldi Group, of which 12,600 Italian flag, is one of the biggest car carriers on the are Europeans. The event brought together over market: in fact, it can transport around 7,600 CEUs 650 top players from logistics, ports, transport and (Car Equivalent Units) or, alternatively, 5,400 linear finance to discuss the development opportunities metres of rolling stock and 2,737 CEUs. related to the Motorways of the Sea. The central From an environmental perspective, the Grande role of the Greek market in the Motorways of the Torino is a highly efficient ship. It is in fact fitted with Sea network, its outstanding performance in the an electronically-controlled Man Energy Solutions maritime transport of goods and passengers and engine, as required by the new standards for the the significant growth in the subsidiary Minoan reduction of nitrogen oxide (NOx) emissions and Lines within the domestic market led to Greece with a scrubber for cutting sulphur oxide (SOx) being chosen for the 2018 edition of the event. emissions. Finally, it complies with the most recent 11 The Grimaldi Group strengthened its connections standards in terms of treatment of ballast water. for freight transport between Northern Italy and The Grande Torino will be deployed on the weekly Sardinia thanks to the introduction of a new line Ro-Ro connection operated by the Grimaldi Group between Genoa and Porto Torres. between the Mediterranean and North America The ship used for the new tri-weekly connection (Canada, the United States and Mexico), together is the Ro/Pax Euroferry Malta, with a loading ca- with the already operational Grande Halifax, pacity of 130 semi-trailers/trucks per departure and Grande Baltimora and Grande New York.

26 2018 Sustainability Report Cap.6 - Our sustainability strategy

Euromed Convention From Land to Sea Since 1997, it has aimed to promote short sea shipping in Europe and its economic, environmental and social benefits.

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 anal- ronmental on the organisation, or when it is able to ysis carried out for the first time in 2015. significantly affect the assessment of the organisation In particular, the results of the analysis process done by stakeholders. by the subsidiary Finnlines were also taken into con- The materiality matrix combines the priorities assigned sideration; this saw the company’s management in- by external stakeholders with internal priorities, to volved in identifying issues material to the group. identify issues that are priorities for the Grimaldi Group Materiality analysis is a process that consists of iden- 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 classified 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).

Health and safety

Development of Human Resources

Economic performance

Business Ethics

Energy efficiency

Customer focus Emissions Innovation and sustainable Ecosystems and biodiversity development

Decommissioning of ships Investment in the community Waste management

Supply chain Water

Spills Environmental management system Importance for Stakeholders Importance for Stakeholders Risk & Compliance

Diversity and inclusion

Continuity of Service and Emergency Management Importance for the Grimaldi Group Importance for the Grimaldi Group 2018 Sustainability Report 27 Cap.6 - Our sustainability strategy

POSSIBLE IMPACTS SOCIAL ISSUES FOR THE GRIMALDI GROUP STAKEHOLDERS INVOLVED Worker productivity Business continuity Employee health and safety Grimaldi Group Staff Improvement of working conditions Ship detention prevention Staff retention Making the most of Human Attracting talent Grimaldi Group Staff Resources Worker productivity Improving the socio-economic Investment in the community situation Community Company reputation Improvement of corporate climate Staff retention Diversity and inclusion Grimaldi Group Staff Attracting talent Company reputation POSSIBLE IMPACTS ECONOMIC ISSUES FOR THE GRIMALDI GROUP STAKEHOLDERS INVOLVED

Business continuity Grimaldi Economic performance Staff Customers Investment Plan Group

Grimaldi Group reputation Suppliers Business Ethics Transparency in operations Group Community Crime prevention Customers Institutions

Energy efficiency Community Suppliers Innovation and sustainable Cost reduction (e.g. fuel) development Competitiveness Rapid adjustment to Regulations Customers Environment Business continuity Supply chain Quality of operations Suppliers Group reputation Monitoring of corporate risks Grimaldi Risk & Compliance Customers Suppliers Prevention of legal disputes Group Monitoring of economic Continuity of Service and risks associated with service Grimaldi Group Emergency Management interruptions Economic and criminal Sanctions Competitiveness Customer focus Grimaldi Group Customers Brand protection POSSIBLE IMPACTS ENVIRONMENTAL ISSUES FOR THE GRIMALDI GROUP STAKEHOLDERS INVOLVED Cost reduction (e.g. fuel) Competitiveness Energy efficiency Environment Community Customers Reduction of environmental impacts Company reputation Reduction of environmental impacts Emissions Regulatory compliance (e.g. Environment Institutions sulphur) Protection and preservation of the Ecosystems and biodiversity Environment land Interruption of service Spills Environmental protection Grimaldi Group Customers Economic and criminal Sanctions Protection of the environment and Water Environment ecosystem Proper supervision and monitoring Environmental management system of environmental issues Grimaldi Group Prevention of environmental risks Waste management Environmental protection Environment Decommissioning of Ships Environmental protection Environment Community Customers (scrapping) Local worker health and safety

28 2018 Sustainability Report Cap.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, Distributed economic value is a qualitative/quanti- we provide an added value table, 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. Added value analysis makes it pos- nomic sustainability of the business, reinvested in sible to obtain an objective measurement of the innovation and services for customers to carry for- economic/social impact created, measuring wealth ward the process of continuous improvement.

GENERATION AND DISTRIBUTION OF ECONOMIC VALUE Figures in thousands of Euro 2018 2017 2016 Delta '18-'17 Delta% '18-'17 DIRECTLY-GENERATED ECONOMIC VALUE 3,062,697 2,941,568 2,694,124 121,129 4% Revenue from sales 2,920,723 2,762,049 2,571,755 158,674 6% Other income (other income, financial 141,974 179,519 122,369 -37,545 -21% income, portion of profits…) DISTRIBUTED ECONOMIC VALUE 2,571,612 2,383,771 2,162,346 187,841 8% Suppliers 2,102,944 1,921,780 1,708,309 181,164 9% Employees 395,928 385,116 374,933 10,812 3% Lenders 51,330 52,081 58,479 - 751 -1% Public Administration 18,657 22,187 17,590 - 3,530 -16% Community 2,753 2,607 3,035 146 6% ECONOMIC VALUE RETAINED 491,085 557,797 531,778 - 66,712 -12% Depreciation 279,015 259,415 245,847 19,600 0.08 Total profit 212,070 298,382 285,931 - 86,312 -0.29

2018 Sustainability Report 29 Cap.6 - Our sustainability strategy

€ 3 billion generated by the Grimaldi Group in 2018

In 2018, the Grimaldi Group generated value of tions, both central and local, through taxes and around € 3 billion, an increase of more than € 100 contributions levied (direct and indirect taxes, du- million compared to 2017 (+6%). ties paid and contributions); Distributed economic value (just over 80% of the • Community (€ 2.7 million): this item represents economic value generated) mainly consists of the the portion of economic value generated that the following items: Group distributed to local communities to support • Suppliers (€ 2.1 billion): this item represents the the organisation of social, environmental and cul- portion of economic value generated that the tural initiatives through the Grimaldi Foundation Group invested in the economic system, through Onlus. the purchase of raw materials, goods and ser- vices. The main expense items are associated The value that the Group did not distribute to its with the Group's core business and are for the stakeholders, but kept internally in the form of am- purchase of fuel and lubricants, general shipping ortisation/depreciation and allocation to reserves, costs and expenses for berth and port services; to be reinvested to guarantee business continuity • Employees (€ 396 million): this item represents and sustainability, consists of the following items: the portion of economic value generated that the Group provided to its employees, in the form • Amortisation and depreciation (around € 279 of salaries or other benefits (e.g. meal tickets, million): this represents the portion of economic training expenses, living and travel expenses, value kept within the Group for amortisation and etc.); depreciation of tangible and intangible fixed as- • Lenders (€ 51 million): this item represents the sets; portion of economic value generated that the • Consolidated profit (around € 212 million): this Group provided to its lenders as interest on loans represents the profit which, based on manage- received; • Public Administration (€ 19 million): this item rep- ment decisions, is mainly reinvested in the Group resents the portion of economic value generated to finance the purchase of new ships, technolog- that the Group distributed to public administra- ical innovation, among other things.

30 2018 Sustainability Report We create value 7 for our stakeholders

7.1 Our customers

ervice quality represents a key element for the current national and international legislation on the SGroup’s business strategy, in order to build rela- subject of passenger transport by sea and, specifi- tionships of solid and lasting trust with customers. cally, as indicated in Regulation (EU) no. 1177/2010 Through the Company Rules for Passenger & Ve- of 24/11/2010, which took effect on the 18/12/2012. hicle Transportation and the General Transport In order to pursue and implement the attention Conditions, the Group has defined its rules and that the Grimaldi Group pays to its customers, the minimum standards, to guarantee the quality of the company introduced for all lines the registration services offered to passengers with particular atten- of passengers through a computerised e-booking tion to the disabled, children and pregnant women. system. The data collection may be either digital (A) Through these rules the Group intends to transfer or manual (B), based on the installations found on to employees and customers the values it pursues. board and in ticket offices. The mission is to provide efficient, reliable, innova- A) Ships with a digital data registration system tive and high-quality services for maritime transport of freight and passengers, by constantly working At the time of the booking, the e-booking system to identify the needs and expectations of its cus- collects information from all passengers. Further- tomers. The Group is dedicated to excellence, so- more, “special assistance” requests are transcribed cial responsibility and transport solutions that pro- and automatically reported, in the event that pas- mote sustainable mobility. sengers make an explicit request. Afterwards, the passenger list is sent to the Purser, port agents or Furthermore, a framework agreement was signed the authorities. At the time of boarding, the Purser with the Bed & Care start-up during 2018 for the im- checks, corrects any incorrect information and com- plementation of the Your Disability Manager service, pletes the aforementioned list, as provided for by which provides assistance and travel solutions for Italian Decree 13/10/1999. Within 30 minutes of the people with disabilities and the elderly. The agree- vessel departing, the Purser, or his delegate, must ment is part of a broader Accessible Tourism pro- send the complete and updated passenger list to ject that is translating into a series of agreements, the Naples Passenger Office via email or fax. The interventions and working instructions. Moreover, 30-minute limit also applies to night departures and inspection trips were carried out on board all the holidays. The booking office updates the passenger ships to improve the level of hospitality, both from a data as soon as possible and as a matter of priority. structural perspective and in terms of the prepara- tion of the personnel in charge. B) Vessels with a manual data registration system The Group guarantees the constant and timely The ship receives the boarding list from the port adjustment of its General Transport Conditions for ticket offices. This list is updated by the personnel passengers, services and organisation, as per the on board. Within 30 minutes of the vessel departing,

2018 Sustainability Report 31 Cap.7 - We create value for our stakeholders

the Purser must send the complete and updated of Conduct and in accordance with the policies and passenger list to the Naples Passenger Office via Guidelines to which it makes reference. email or fax. For this reason employees are constantly invited to The 30-minute limit also applies to night departures be professional, to respect their colleagues and the and holidays. Then the booking office updates the customers, to commit themselves to achieving the passenger data as soon as possible and as a matter goals set by the Group, increasing the efficiency of of priority. On board the ships, if the Purser is not direct and indirect production processes and paying on board, the responsibility for the application of attention to costs to avoid all kinds of waste. the procedure described above falls to the Master. The data is used and processed for statistical and 7.1.1 PASSENGER TRANSPORTATION commercial purposes required to analyse the pro- Customer satisfaction, for an increasingly de- ductivity of the department and define the busi- manding and informed clientele, is one of the ness strategies to be adopted. To date, the studies Group’s main objectives. During 2018, the dedicated produced primarily examine volumes and chosen email address3 once again confirmed the meticu- route. Cabin type, vehicle category, purchasing lous, immediate and careful management of reports channel, gender and age are currently processed in and complaints sent by passengers. The Customer a secondary manner. Service office responds to all complaints received Furthermore, for the purposes of personal data pro- within and no later than 30 days from the date of cessing, during 2018 the Group worked intensively receipt. Once processed, and thus dealt with, they to comply with the GDPR (General Data Protection are added to the specific Register. Complaints and Regulation) privacy directives. Specifically, the Per- comments from our customers concerning the land sonal Data Processing Policy was updated in five and sea service offered are shared with the various languages, as well as the general conditions of the departments of the fleet, ticket offices and the ships contract in regards to privacy. Moreover, a specific concerned. The study and analysis of these com- register was created for personal data processing ments support the Group in choosing the strate- by the Passenger Office. Contracts to appoint Ex- gies to take in order to overcome the critical issues ternal Data Processors were signed and the sales raised and contributes to improving the service. Ad- intermediaries who are the autonomous data con- ditionally, inspections of terminals and on board the trollers of this processed data were made aware of Ro-Pax ships are also carried out weekly, in order this and asked to show the related information doc- to intervene directly to resolve the problems that ument to shared customers. Lastly, the promotional emerged. activity of sending newsletters was better regulated During 2018 approximately 4 million passengers and defined in the three areas of soft spam, general travelled on the Group’s ships and around 1.3 com- marketing and targeted marketing. During 2018, plaints were received per 1000 passengers, mainly there were no breaches in privacy. The Grimaldi Group’s activities are carried out in a socially responsible, impartial and ethical manner, adopting policies to ensure equity and properness in the management of business relationships, guar- 2018 anteeing worker safety, and promoting and encour- around 1.3 complaints for aging ecological awareness, while fully complying every 1,000 passengers with the laws that apply in the countries in which the Grimaldi Group operates. All business relation- The complaints mainly ships are structured around integrity and loyalty and concerned: are carried out without any conflicts of interest. To delays achieve this objective, the Grimaldi Group requires cancellation of all of its directors, managers and other employees ship departure some on-board services to comply with the highest ethical standards for business in their work, as established in the Code

3) [email protected]

32 2018 Sustainability Report Cap.7 - We create value for our stakeholders

The customer satisfaction results for 2018 are given below:

related to delays, cancellations of ship departures the manufacturing plant to the destination markets. and some on-board services. The Grimaldi Group’s shining achievement is its ex- The degree of customer satisfaction is also meas- tensive Motorways of the Sea network, dedicated ured by analysing the suggestion forms that are to maritime and intermodal transport, allowing the placed in the cabins and common areas of the ships traffic of heavy vehicles on the roads to be reduced. available to customers. All the suggestion forms col- Over the last 20 years, the Group has repeatedly lected are processed in monthly and yearly statis- been recognised by customers and specialised tics, thanks to which the degree of satisfaction with publications for the services it offers. the offered service can be seen. Four reference In turn, during the second Grimaldi Excellence parameters are used (insufficient, sufficient, good, Awards, held on 5 October in Lagonissi (near excellent) and mainly concern the services offered Athens), the Grimaldi Group recognised a few of its and the activities present on board the Ro-Pax ships. best partners and customers. We also examined the most important comments left by customers on the suggestion forms, which Important players in the logistics, ports and trans- are shared with the departments concerned so that port sectors were selected and recognised on the the suitable corrective actions can be adopted. The basis of the quality of the services they supplied to level of satisfaction of the offer is further monitored the Group in 2018. These included the Bristol Port Company and the Venice Port Authority, which were by conducting a monthly comparison of the trend of chosen as the best foreign and Italian port respec- opinions expressed as a percentage between the tively. The Terminal of Livorno (Sintermar) was se- year in question and the previous year. lected as the best port terminal. Grimaldi Maritime Agencies Sweden AB won best agent. Alfa Laval 7.1.2 FREIGHT TRANSPORT distinguished itself as the best Group supplier. Today the Grimaldi Group is the main Italian ship- As the Group’s main customers in 2018, on the other owner and a world leader in the maritime transport hand, the top players in the automotive sector and of cars and rolling freight. It also operates in the the road haulage companies that transported the transportation of containers and project cargo. largest volumes of goods and relied on Grimaldi’s The transport of goods via sea is integrated with services, were also recognised. Lastly, Domenico the services provided by the port terminals (either D’Auria (Trans Italia) and Carlo Terzi (L.V. Ghianda owned or managed by the Group), and land trans- Shipping Agency) received the career award for portation. Specifically, for the transport of new cars, their long and fruitful careers in the logistics and the logistics chain is followed at every stage, from shipping sector.

2018 Sustainability Report 33 Cap.7 - We create value for our stakeholders

The Group's main awards in 2018

• Minoan Lines received the Golden Award a panel of travel agents, operators and trav- port. Out of the 12 transoceanic operators iden- and was declared the Best Greek Coastal Ship- ellers crowned Grimaldi Lines travellers’ fa- tified, ACL obtained some of the highest scores ping Company at the 2018 Greek Hospitality vourite ferry company. The Italia Travel Award for value and customer service. Awards. The ceremony was held on 23 Feb- is a prestigious recognition that celebrates the ruary and was organised for the fourth con- commitment and expertise of the Italian tourism • On 15 November, Grimaldi Lines was secutive year by the Ethos Awards and Money industry, with the aim of encouraging develop- crowned Ro-Ro Line of the Year at the 2018 magazine. ment and professionalism within the sector. Global Freight Awards. This annual event is organised by the Lloyd's Loading List publi- • At the 2018 Tourism Awards, on 20 March, • In June, the Group received the Leadership cation and is designed to be a showcase for Excellence Award from Panorama magazine. the Greek subsidiary of the Grimaldi Group re- the best companies in the freight sector to ceived seven important awards. Minoan Lines • On 29 June, Atlantic Container Line received highlight their value for the businesses and, won three Golden Awards for the MlNOAN more generally, the communities they serve. LINES BONUS CLUB, the company’s pioneering the 2018 Ryder Systems Inc. Carrier Quality Award in the International Maritime Commerce The Ro-Ro Line of the Year award is one of and flexible customer loyalty programme, for category. The award recognises excellence the most prestigious Readers’ Vote Awards reducing the environmental impact of Minoan through a variety of parameters, including the given during the ceremony. Every year, Lloyd's Lines ships and protecting the environment, timeliness of service, complaint management, Loading List asks its readers who operate in and for its integrated Online Digital Campaign customer service, technology, economic value freight transport to nominate and vote for the called “Away with the Müllers”; three Silver and innovation. Awards, for its creative and integrated Online transport operators that they feel have provided the best service in the last 12 months. Communication and Strategy, for its Support • In November, the Grimaldi Group received The Grimaldi Group received the prestigious for Local Communities and for its Corporate the Corporation of the Year Award and the award for the second consecutive year. This has Social Responsibility Actions respectively; and Shipping Company Award at the 2018 Auto- never happened before to any other shipping a Bronze Award for its integrated Social Media motive Global Awards. The event was held on Strategy. 1 November and was organised by Three6Zero, company. a publishing group with a strong specialisation • At the end of the year, the Grimaldi Group • At the fourth North America Automotive in the automotive sector, with various publica- received two important recognitions from Fiat Global Awards, held on 17 April in Detroit, the tions distributed in America, Asia, India and Chrysler Automobiles (FCA). On 29 November, Grimaldi Group was awarded Shipping Com- Europe. These awards are given every year by a during the Logistics Carrier Conference or- pany of the Year. The event was organised by panel of experts who identify global excellence "Three6Zero", a publishing group with strong in the logistics supply chain for the automo- ganised in Detroit by FCA US, the Neapolitan specialisation in the automotive sector. tive sector. The Neapolitan Group was awarded Group was given the Best Ocean Carrier of the The Automotive Global Awards are assigned as company of the year and as one of the best Year award for its outstanding performance annually by a specialised panel that identifies shipping companies given its exceptional work in the logistics sector. The Group was also excellent global companies involved in the and its performance in the global logistics nominated as EMEA Supply Chain Supplier of automotive supply chain. The Grimaldi Group chain. the Year by the automotive multinational. The was amongst the 21 winners, distinguished in award ceremony took place on 17 December at their respective categories for having achieved • The Grimaldi Group obtained the 2018 Label the Lingotto Congress Centre in Turin, as part objectives that seemed unattainable or for their for Alternating School/Work Quality (Bollino of the FCA’s 2018 Annual Supplier Conference. innovative approach. per l'Alternanza di Qualità - BAQ), a prestigious The Neapolitan Group was awarded for having recognition given by Confindustria. This award demonstrated a strategic, long-term vision of • In May, the Grimaldi Group was recognised concerns the significant training conducted by its business with the FCA and for having im- as one of the best global suppliers by the the Group during the 2017-2018 school year, plemented a proactive approach by leveraging Ford Motor Company during the 20th World thanks to the alternating school/work projects a strong investment plan. Excellence Awards and won an award in the offered within the large Grimaldi Educa project, Outbound Ocean - Finished Vehicles cate- which groups all the activities related to educa- • Between November and December, Minoan gory. Only 88 companies out of the thousands tion and training. Lines received two important awards: the hon- of Ford suppliers all over the world were se- orary Top Growth Operator Award from Direct lected as finalists which stood out for having • At the start of November, Atlantic Container Ferries, the biggest platform for the online sale exceeded expectations by achieving the highest Lines ranked first place out of North American levels of excellence in terms of quality, delivery, operators in a survey conducted by Logistics of ferry tickets and online travel agent in Eu- value and innovation. Management Magazine. The 35th Quest for rope, and the True Leader award in the Ship- Quality is an annual customer satisfaction ping Transport category from the credit rating • On 24 May, at the 2018 Italia Travel Awards, survey concerning all major modes of trans- agency ICAP Group.

34 2018 Sustainability Report Cap.7 - We create value for our stakeholders

7.2 Our people

The Grimaldi Group has always worked in the con- favour of workers relative to: improvements in diems viction that the capacities and qualities of its collab- for every mission day and greater flexibility in hol- orators are the basis of its success, whether they iday hours and methods of use (without prejudice work at sea or ashore. to legal regulations relative to use of holiday days), For this reason, all activities that protect and en- as well as institutionalisation of seniority bonuses hance personnel are of central and strategic im- upon reaching 20, 25, 30 and 35 years of service. portance for the Group, with the aims of creating These benefits, deriving from the 2nd Level Agree- lasting relationships of reciprocal trust, attracting ment, are added to those already existing, such as the arrangement of a private policy paid for entirely new talent and guaranteeing a healthy and safe by the company (in addition to INAIL insurance) for working environment. administrative personnel on missions. The Group can boast of solid relationships with the In particular, during 2018 an agreement was final- main union organisations in its sector, based on con- ised with the trade unions that signed the employ- tinuous dialogue (at least quarterly) and cooperation, ment contract for the staff from the subsidiary ship- to share any issues and proposals for improvement ping company, New TTT Lines, which ceased to coming from employees. In Italy, the Group has in operate the Naples-Catania line. The agreement al- its workforce three employees who represent the lowed over 150 members of staff, who reside mainly main trade unions in the industry, FILT-CGIL FIT-CISL in Campania, to be re-employed. and UIL-Trasporti, and for more than twenty years relations have been based on the prompt solution As far as disputes are concerned, during 2018 no of requests, of problems that may emerge and of significant cases arose. improvement actions proposed by employees. In Among the Group’s foreign subsidiaries, Finnlines addition, the Human Resources Manager is an inte- considers the basis of its success its attention to gral part of the Education Commission and the Work human capital, in particular to long-term coopera- Commission of Confitarma. In 2018, employees cov- tion between shore and sea personnel. The com- ered by collective contract agreements accounted pany promotes well-being in the workplace and for 100% of onboard personnel and 90% of shore work skills as essential long-term factors of success. personnel for the entire reporting period4. Improvement of performance was implemented During 2018, the 2nd Level Agreement continued mainly through increasing the cohesion of the team, to be applied, which made improvements to the concentrating attention on improving the leader- provisions of the CCNL (National Collective Labour ship capacity and ensuring fair recruitment capable Agreement). This agreement also provided for ad- of adding value to the company. herence to the National Additional Assistance Fund For its part, Minoan Lines believes that the per- UNISALUTE, which offers healthcare and injury sonality of each employee contributes significantly treatment. In addition to remuneration improve- to the company’s success and intends to recruit ments, the Agreement also includes new benefits in people with adequate skills who also have the aim

4) The reporting perimeter covers 95% for 2018, 2017 and 2016 regarding shore personnel. The reporting perimeter covers 80% for 2018 and 2017 regarding sea personnel.

2018 Sustainability Report 35 Cap.7 - We create value for our stakeholders

of maintaining high standards of services, both on ther assessment and fi nal approval. Alongside the ashore and onboard. approval procedure, the HR Department supports The Company cooperates with the most important the department that has requested the resource educational institutions and off ers employment op- in setting out the necessary skills and defi ning the portunities through its own job centres. Promoting professional profi le required. When approved, the equality and equal opportunities in the sector in profi le is cross-checked with the internal database which it operates is the Company’s main objective populated by spontaneous applications on the and is supported at all levels of the administrative “work with us” section of the Grimaldi company structure. website. After having identifi ed a number of ideal In addition, the Company invests in the training of candidates, a commission, defi ned on the basis of its employees with the aim of improving continually the skills to be assessed, selects the individuals their professional development. most suitable for the position in question. The pro- cedure is completed with a decision taken by the 7.2.1 PERSONNEL SELECTION POLICIES majority of the commission, although the manager The Human Resources Department manages re- of the offi ce which requested the resource can al- quests for new staff coming from the various com- ways ask to carry out further in-depth interviews. pany departments, both in the case of replacing per- The type of contract adopted for beginning new sonnel (e.g. maternity) and in the case of increasing employment positions, above all for the junior pro- staff , taking particular care in selecting and making fi les, is the professionalising apprenticeship which, the best use of protected categories. at the moment, off ers the best contractual profi le in Once requests have been surveyed, if the need is terms of costs and possibility of creating training/ confi rmed, they are presented to the Board for fur- specifi c insertion pathways.

Shore personnel

102-8: Personnel divided by gender and contract type5

2018 207 2018 1,542 2,514 1,058 2017 174 2017 1,351

2,499 1,045

2016 1,273 128 2016

1,026 2,478

Fixed-term contracts Fixed-term contracts Permanent contracts Permanent contracts

5) The reporting perimeter covers 95% for 2018, 2017 and 2016 regarding shore personnel.

36 2018 Sustainability Report Cap.7 - We create value for our stakeholders

102-8: Personnel divided by geographic area and contract type6

59

, , , , , ,

102-8: Personnel divided by type of work7

6) The reporting perimeter covers 95% for 2018, 2017 and 2016 regarding shore personnel. 7) The reporting perimeter covers 95% for 2018, 2017 and 2016 regarding shore personnel.

2018 Sustainability Report 37 Cap.7 - We create value for our stakeholders

405-1: Breakdown of personnel by professional category and by sex8

MANAGERS 2018 2017 2016 EXECUTIVES MEN 85% 85% 84% 2018 2017 2016 WOMEN 15% 15% 16% MEN 77% 77% 79% TOTAL 6% 6% 6% WOMEN 23% 23% 21% TOTAL 7% 7% 7%

OFFICE WORKERS 2018 2017 2016 MEN 60% 60% 61% WORKERS WOMEN 40% 40% 39% 2018 2017 2016 TOTAL 44% 46% 48% MEN 92% 92% 94% WOMEN 8% 8% 6% TOTAL 43% 41% 39%

405-1: Breakdown of personnel by professional category and age9

EMPLOYEES UNDER 30 EMPLOYEES OVER 50 2018 2017 2016 2018 2017 2016 75% 52% 50% 49% 64% 63% 34% 33% 22% 22% 22% 21% 15% 14% 14% 14% 14% 12% 3% 3% 2% 1% 1% 0% MANAGERS EXECUTIVES OFFICE WORKERS MANAGERS EXECUTIVES OFFICE WORKERS WORKERS WORKERS EMPLOYEES OVER 50 2018 2017 2016 52% 50% 49%

24% 12% 12% 64% 61% 27% Percentage Percentage Percentage of employees of employees of employees under 30 from 30 to over 50

22% 22% 22% 50 yrs old 15%

14% 14% 14% 14% 12% 62% 26% 12% 2018 2017 2016 2018 2017 2016 2018 2017 2016

MANAGERS EXECUTIVES OFFICE WORKERS WORKERS

8) The reporting perimeter covers 95% for 2018, 2017 and 2016 regarding shore personnel. 9) The reporting perimeter covers 92% for 2018, 2017 and 2016 regarding shore personnel.

38 2018 Sustainability Report Cap.7 - We create value for our stakeholders

The selection procedure for onboard personnel considers the possession of the STCW certifi cation to be a bare minimum

Maritime personnel

When selecting crew personnel to work on ships, the ative. Nevertheless, the data related to the number process of identifying, assessing and selecting staff of personnel (GRI 102-8) refers to contracts acti- is the direct responsibility of the Crewing Depart- vated during reporting period. ment. The selection procedure for these workers considers possession of STCW certifi cation10 as a Furthermore, it should be noted that the Group has bare minimum, as well as meeting all the require- decided not to include the absenteeism rate for ments of the fl ag the ship sails under. Abroad, initial maritime personnel in the data concerning occu- selection is done by personnel agencies, with fi nal pational health and safety (GRI 403-2) (Appendix), approval given by the Crewing Department. as it is not representative. This is due to the type In reference to the fi gures concerning the recruit- of contract applied by the shipping companies, ment and termination of maritime personnel, con- which entails the disembarking without subsequent sidering the diff erent forms of national legislation re-embarkation for personnel suff ering from illness, that apply to the Group’s six shipping companies and accounting for the mixed nature of the informa- occupational diseases or accidents. This condi- tion, starting from this report the Group has decided tion allows the sharing of data and information that to not display this information as it is not represent- could better represent the Group’s business.

102-8: Personnel divided by gender and contract type

2018 2018 729 414 9,341 190

2017 2017 720 289 8,098 141

2016 804 2016 308 8,144 143

Fixed-term contracts Fixed-term contracts Permanent contracts Permanent contracts

10) An international convention on training, certifi cation and watchkeeping standards for sailors, known also as STCW Convention '78, or just STCW (Standards of Training, Certifi cation and Watchkeeping for Seafarers).

2018 Sustainability Report 39 Cap.7 - We create value for our stakeholders

102-8: Personnel divided by geographic area and contract type11

Italy Greece

, , , ,

Sweden Finland

Malta Rest of the world

, , ,

Permanent contracts Fixed-term contracts

102-8: Personnel divided by type of work

11) The reporting perimeter covers 80% for 2018, 2017 and 2016 regarding sea personnel.

40 2018 Sustainability Report Cap.7 - We create value for our stakeholders

405-1: Breakdown of personnel by professional category and by sex2

OFFICERS 2018 2017 2016 MEN 96% 97% 97% WOMEN 4% 3% 3% TOTAL 35% 35% 35% PETTY OFFICERS 2018 2017 2016 SEAMEN MEN 99% 99% 98% 2018 2017 2016 WOMEN 1% 1% 2% MEN 93% 94% 93% TOTAL 13% 15% 15% WOMEN 7% 6% 7% TOTAL 52% 50% 50%

405-1: Breakdown of personnel by professional category and age13

EMPLOYEES UNDER 30 EMPLOYEES FROM 30 TO 50 YRS OLD 2018 2017 2016 2018 2017 2016 57% 56% 55% 55% 52% 52% 45% 44% 41% 31% 30% 29% 15% 15% 14% 4% 3% 2%

OFFICERS PETTY OFFICERS SEAMEN OFFICERS PETTY OFFICERS SEAMEN EMPLOYEES OVER 50 2018 2017 2016 39% 36% 35% 35% 34% 34% 31% 30% 26%

26% 28% 53% 50% 21% 22% Percentage Percentage Percentage of employees of employees of employees under 30 from 30 to 50 yrs old over 50

27% 51% 22%

OFFICERS PETTY OFFICERS SEAMEN 2018 2017 2016 2018 2017 2016 2018 2017 2016

12) The reporting perimeter covers 80% for 2018, 2017 and 2016 regarding sea personnel. 13) The reporting perimeter covers 80% for 2018, 2017 and 2016 regarding sea personnel.

2018 Sustainability Report 41 Cap.7 - We create value for our stakeholders

3.3 was the average number of training hours per ashore employee during 2018

7.2.2 TRAINING AND SKILL DEVELOPMENT Training requirements are determined every year whether technical or related to soft skills. as part of the merit-based evaluation of the work- In 2018, the usual attention was paid to employee force, in order to identify and correct any shortcom- ings in staff training. In particular, every evaluator training via courses that involved the entire organi- can express for each employee any training needs, sational structure and, in particular:

At the end of the courses, in order to assess the In addition, in order to keep its employees up to trainer’s work, the Human Resources Department date with new technologies, the Group has installed provides participants with an anonymous question- a navigation, manoeuvre and maritime telecommu- naire to obtain qualitative and quantitative feedback nications simulator. This is a Transas 5000 model on each session. which complies with the IMO standards and can Overall, in 2018 the Group had an average of 3.3 simulate manoeuvres in different sea and weather training hours per employee for shore personnel, conditions. considering the 5,321 employees in this category, The Transas 5000 Simulation System offers training and 0.67 average training hours for maritime per- at all levels (basic, intermediate and advanced sonnel, considering a total of 10,674 employees in training). This feature means it is possible to cover this category14. a vast range of trainees at different levels, nautical

14) The reporting perimeter covers 84% for 2018 and 82% for 2017 and 2016 regarding shore personnel. The reporting perimeter covers 83% for 2018, 2017 and 2016 regarding sea personnel.

42 2018 Sustainability Report Cap.7 - We create value for our stakeholders

Executives 2018 2017 2016 Workers 2018 2017 2016 Managers MEN 4.3 7.4 4.3 2018 2017 2016 MEN WOMEN Oce Workers 1.6 2.3 1.2 MEN 6.7 4.31 7.6 5.2 4.7 5.7 2018 2017 2016 WOMEN TOTAL 1.7 0.3 0.8 WOMEN 4.9 8.8 5.0 MEN 5.5 5.2 6.3 4.7 4.2 4.5 TOTAL 1.6 2.1 1.2 TOTAL WOMEN 5.0 4.5 5.5 4.8 4.2 5.2 TOTAL 4.5 4.0 4.6 Petty Ocers 2018 2017 2016 MEN 1.1 0.5 3.0 Ocers WOMEN 9.4 5.0 20.7 2018 2017 2016 TOTAL Seamen MEN 1.2 0.5 3.3 1.4 1.0 1.8 2018 2017 2016 WOMEN MEN 2.3 -1.2 0.3 0.2 1.3 TOTAL WOMEN 1.4 1.0 1.8 2.6 1.3 4.8 TOTAL 0.4 0.3 1.5

401-1: Average training hours, by professional category and by sex

students, and also expert seafarers, river pilots, port mance of each employee and to organise, at least pilots, tugboat operators, etc. once a year, an interview to determine the extent Currently the simulator is used only for training Deck to which the objectives set the previous year have Officers and on numerous occasions for internships been met, indicate any problems, and identify new organised for the students of the Nautical Institutes objectives for the future. with which the Group collaborates. The Human Resources Department actively partic- In addition, again in order to guarantee maximum ipates in assessing staff performance and, during safety in the workplace, thanks to the simulator, the year, launched a project to digitalise the assess- accidents that have occurred in the past with the ment process, which became necessary due to the Group’s ships are analysed. The same conditions growing number of personnel within the company. present at the moment of the accident are recre- The assessment parameters were examined in ated and an analysis of the event is carried out. Fi- depth in specific meetings with the managers to nally, possible corrective actions that could be car- ensure that the assessment is made in a balanced ried out, should the situation reoccur, are identified. manner. This made it possible to reward the wor- thiest employees, who had stood out particularly 7.2.3 PERFORMANCE EVALUATION during 2018, according to the parameters and The entire workforce undergoes an annual perfor- guidelines established by management. During mance evaluation. For the Group, this activity is a 2018, 25% of staff was involved in merit-based pro- way to reward employees who have been most in- jects. terested and involved in the processes of improving In fact, the Group is strongly convinced that re- and developing the Group. warding staff for talent makes it possible to Each manager responsible for company depart- strengthen loyalty to the Group, helping them to feel ments are asked by the Human Resources Depart- like an integral part of a strong, solid and well-or- ment to complete assessment forms on the perfor- ganised system.

2018 Sustainability Report 43 Cap.7 - We create value for our stakeholders

Workplace health and safety The Group ensures that all workers receive sufficient and adequate training on working methods and on risk prevention

7.2.4 WORKPLACE HEALTH AND SAFETY to equip each of its offices with a defibrillator, for the In 2018, the RAD (Risk Assessment Documents) use of which the members of the first aid teams were for Grimaldi Euromed, Grimaldi Deep Sea and the trained. Grimaldi Group were updated and all the risks per- Information activities and training for workers on oc- tained to in Italian Legislative Decree 81/08 were cupational health and safety is updated regularly, pur- assessed again. suant to Italian Legislative Decree 81/08, and: Furthermore, the prevention and protection team was • at the time of hiring; audited, and the engagement logic was modified, • any time changes occur in the Group's activities, leading to a new coordination procedure between the judged significant in terms of their impact on activities of the three companies. worker health and safety conditions; In regards to occupational health and safety training, • when significant changes are made to relevant the Group ensures that all workers receive sufficient regulations that require revised risk assessments and adequate training on working methods and on with regard to worker health and safety; risk prevention at the time they are hired or when they • when tasks change. change jobs. In addition, tasks have been identified that expose The Group informed its employees about the provi- workers to specific risks requiring recognised profes- sions contained in Italian Legislative Decree 81/08 sional abilities, specific experience, adequate training (Consolidated Act on Workplace Safety), for the spe- and/or education. cific activities the business carries out, on workplace In the company, there are tasks which expose certain health and safety risks connected to individual re- sponsibilities, as indicated and assessed, pursuant to professional roles to specific risks which require rec- Article 28 of Italian Legislative Decree 81/08, and on ognised professional skills, specific experience and prevention and protection measures and activities im- appropriate training, specifically: plemented and/or scheduled. • Technical Inspectors; During training and information activities, according • Inspectors for on-board safety procedures; the risk assessment done for the Group's activities, • Inspectors to prevent load damage; particular attention is also paid to the proper use of • Port Captains. Personal Protective Equipment deemed necessary, For these professional roles, in addition to a specific as well as working methods and procedures to be health protocol and suitable training, the Risk Assess- adopted to guarantee adequate safety conditions. ment Document was amended, issuing a specific ship In regards to health and safety in the workplace, only access procedure that was distributed to all relevant 17% of the Group’s companies that are subject to re- ground personnel and Ship Control. porting has workers that are involved in high-risk ac- For 2018, the percentage of employees that were part tivities. of health and safety committees was 37%, down com- Furthermore, in the area of first aid, the Group decided pared to the 39% of 2017 and the 40% of 2016.

44 2018 Sustainability Report Cap.7 - We create value for our stakeholders

7.3 Our suppliers and agents

One of the Grimaldi Group’s objectives is to estab- tenance and repair of propulsion engines; lish relationships with our business partners that are • The purchase of lubricants; based on transparency, fairness and impartiality. • The purchase of paint for hulls, top side work, Except for Minoan Lines, the Chartering & Bunkering bridges and garages. Department handles the Group’s supplies of fuel, The Procurement Department also supervises the paying the maximum attention to limiting costs and purchases of the subsidiaries Finnlines and MMOS, to searching for any new suppliers on the destination stipulating Group framework agreements, verifying markets of the ships. Procurement requests must their budgets and their most significant purchases. In reach the department five working days before the 2018, in addition to purchasing materials and services bunkering day. for maintenance, the Department was particularly The procedure involves sending a procurement re- involved in supporting the technical management quest from the ship using a specific form containing in purchasing technologies and services to reduce all the necessary specifications. Once the request has been received, it is entered on the “spot market”, consumption and environmental impact, such as: if there is no agreement, or is sent to any supplier • The installation of scrubbers to cut sulphur emis- with which the Group has pre-set agreements. sions; The spot request is processed through a tender • Replacement of the current propellers with new among all the suppliers present in the port involved ones featuring profiles optimised for the cruising in order to obtain the best price on the market. Once speeds currently reached, with a subsequent re- the tender has been completed and/or the confirma- duction in consumption; tion received from the supplier a bunker confirma- • Replacement of incandescent bulbs with low con- tion is sent to the ship. sumption (LED) bulbs. For each request the itinerary of the ship is always In 2018, the Group also negotiated and finalised the assessed in order to check whether the port in which contract for the provision of satellite services for ves- the ship has requested the bunkering is the cheapest sels operating on ocean routes. The procurement of the entire itinerary. process was regulated by the procedures of the The Grimaldi Group’s procurement activities are man- quality/environmental system. In regards to the com- aged by the Procurement Department. The Depart- puterising of the procurement process, in 2018 the ment is organised into 3 specialised buying groups, amounting to a total of 30 units. The first group pur- Group saved the documentation produced during chases replacement parts and services for “engine the tendering stage for every order issued in specific and deck” equipment. The second group purchases files, which is why, from that year, the printing and consumables (e.g. electrical materials, oils, paints, archiving of the hardcopies of orders is no longer pharmaceuticals, etc.) for “cargo” ships. The third necessary, with significant savings in terms of con- group purchases consumables for ships that board sultation time, paper and storage space. Purchases passengers, as well as dealing with advertising and are managed via the company’s IT system. Suppliers service contracts for office maintenance. The De- are monitored over the year on the basis of the time- partment sees to procuring supplies for the ships of liness of delivery and the corresponding quality and two Grimaldi Group companies, Grimaldi Euromed and Grimaldi Deep Sea, and the subsidiary ACL. The quantity of material delivered compared to what annual budget managed in 2018 was approximately was ordered. A special IT procedure monitors sup- €250 million and the most significant expenses re- pliers on the basis of the timeliness of delivery and garded: any complaints received from the issuing ship. If the • Expenses for scheduled maintenance in dry rating is insufficient for two out of three consecutive docks; years, this will lead to the supplier being removed • The purchase of parts and services for the main- from the register.

2018 Sustainability Report 45 Cap.7 - We create value for our stakeholders

Suppliers subdivided by geographic area

Breakdown of major suppliers

46 2018 Sustainability Report Cap.7 - We create value for our stakeholders

Supplier Certifi cations In structuring its supply pro- mented a quality system which cesses and supplier relation- refers to other regulations, the ships, the Group refers to what Group reserves the right to the general purchasing con- carry out audits to determine ditions, the integrated quality 7% OHSAS 18001 assurance and environmental whether it is adequate. manual, as well as its Code of With reference to suppliers an- Conduct. alysed15 and monitored for pos- 90% ISO 9001 More specifi cally, the approach session of certifi cation, it was adopted in managing all steps found that ISO 9001 (quality within the supply process is system) is the most widespread based on observing the fol- 26% ISO 14001 certifi cation (90% of suppliers lowing principles: analysed), followed by ISO • Compliance with national and 14001 (environmental manage- EU law and regulations; ment system), held by 26% of • Respect for competition and 17% Altro non-discrimination with pos- Other suppliers analysed. sible competitors; Verifi cation that suppliers hold • Transparency in the selection the main certifi cations related process; to environment and health and • Effi ciency and effi cacy. The integrated quality assurance and environmental safety is done through an evaluation form within the management manual defi nes responsibilities and Quality Management System, as well as verifi cation governs the operating methods within the supply by the Procurement Department that renewals are process, from identifi cation of possible suppliers to obtained. the fi nal selection stage. The attention the Group pays to sustainable man- Suppliers are selected using appropriate and objec- agement of the supply chain is also demonstrated, tive methods that consider, in addition to quality, in- as showed in the graph above, by the decision to novation, costs and services off ered, social and en- vironmental performance and respect for the values recognise and select suppliers that adopt quality, outlined in the Group’s Code of Conduct. workplace health and safety and environmental When analysing suppliers, the Group examines management systems that are structured and cer- whether the main health, quality and environmental tifi ed under internationally recognised standards, certifi cations are held. When suppliers have imple- mainly: ISO 9001, ISO 14001 and OHSAS 18001.

15) The analysis refers to 105 main suppliers.

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7.4 Institutions and trade associations

Also in 2018, the Grimaldi Group played an active role within the main Italian and foreign trade associations, 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 partici- pates in, in order to promote maritime activities.

ICS (International Chamber of Shipping) - The Group is a member of the ICS, the main international or- ganisation of the maritime industry which drafts and defi nes guidelines regarding technical, environmental, political and operational considerations which infl uence international transport. Vice Chairman is Emanuele Grimaldi, the only representative from Italy.

ECSA (European Community Shipowners’ Associations) - The Group is a member of the ECSA, an entity that represents all the European shippowners' associations, with managers participating on various com- missions 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.

CONFITARMA (Confederazione Italiana Armatori - Italian Shipowners' Confederation) - The Grimaldi Group is a member of Confi tarma, the Rome based association of shipping companies and shipowning groups that operate in freight and passenger transport, cruises and auxiliary traffi c services. Its participa- tion in this association is quite active: Emanuele Grimaldi served as President of Confi tarma from 2013 to 2017 and various Group managers are members of several thematic committees established within the association.

ALIS (Logistic Association of Sustainable Intermodality) - The Group is a member of ALIS, which was founded in Rome at the end of 2016. ALIS consists of the largest Italian road haulage companies, as well as by public and private bodies and companies that operate in transport and logistics. Its main objective is to support the eco-sustainable development of intermodal transport. The association promotes the de- velopment of monitoring systems with the goal of 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.

ECG, The Association of European Vehicle Logistics - It is a Brussels based non-profi t organisation that promotes the interests of car carrier operators and the logistics sector, providing a meeting place of sup- pliers of logistics services, auto manufacturers and suppliers in the sector. From 2009 to 2016, Costan- tino Baldissara, Commercial, Logistics and Operations Director, served as President of the Association, actively promoting dialogue between suppliers, customers, authorities and institutions in regards 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 contribute ideas for various programmes, but 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.

CSA (Clean Shipping Alliance) - Founded in September 2018, the Clean Shipping Alliance is a group of leading companies in the shipping and cruise sector that stand out for their activities that aim to control hazardous emissions. Its mission is to provide support and information on the use and eff ectiveness of exhaust gas purifi cation systems, in order to promote shared environmental and sustainability initiatives. At the same time, the CSA supports the implementation of the IMO’s “sulphur cap” requirement, which will be lowered to 0.5% globally from 1 January 2020. The Grimaldi Group is one of the founding members of the Clean Shipping Alliance.

48 2018 Sustainability Report Cap.7 - We create value for our stakeholders

DONATIONS AND SPONSORSHIPS

Finnlines "Together across the Baltic" As part of the programme to celebrate the centenary of Finland's in- dependence in 2017, the Finnlines “Together across the Baltic” project challenged its personnel and Star-class passengers to collect as many nautical miles as those travelled by Finnlines Ro-Pax ships, used for over 70 journeys between Helsinki and Travemünde. In exchange for the 79,240 kilometres collected, Finnlines supported children’s cancer research by donating € 50,000 to the Aamu Paediatric Cancer Founda- tion at the 2018 MATKA Travel Fair in January 2018.

Restoration of the Basilica dell'Incoronata Madre del Buon Consiglio e Regina della Cattolica Chiesa The Grimaldi Group is actively involved in protecting and enhancing the artistic heritage of Naples, and allocated € 440,000 to fund the restoration of the façade of the Basilica dell'Incoronata Madre del Buon Consiglio e Regina della Cattolica Chiesa, located in Naples. The recon- struction work, which began in April 2018, will last for around two years and will be focused on the northern face of the church.

“Family School” Project, Bianchi Institute In 2017, the Grimaldi Foundation Onlus (non-profi t charity) embarked on a project known as the “Family School” to tangibly meet the needs of families from the Campania region. The fi rst pilot activities, dedicated to the elderly and parents, began in January 2018. After months of intense negotiations, on 17 October 2018, the Foundation, chaired by Paola Ar- cidiacono Grimaldi, signed an agreement to take over the former Bi- anchi Institute on gratuitous loan for use and future purchase for over € 10 million. The Bianchi institute is one of the oldest and most prestigious buildings in the centre of Naples. It is spread over 11,000 m2, which will be entirely assigned to house the activities of the Family School, in service of the neighbourhood, the city of Naples and its families. For the fi rst time, the Foundation has organised, fi nanced and managed free parenting and after-school courses for families in diffi cult situations from the city of Naples and the surrounding province (SPES-F).

Silver Sponsor of the Panachaiki football team In 2018, Minoan Lines continued to be a Silver Sponsor for the Greek championship of the Panachaiki football team in the city of Patras, to which it donated € 25,000.

NAV 2018 - XIX International Conference on Ship Maritme Research "Annual Interferry Conference" The Grimaldi Group promotes conferences related to maritime trans- port. In June it took part in the triennial international conference con- cerning maritime technologies, “NAV 2018 - XIX International Confer- ence on Ship Maritime Research”, to which it donated € 3,000 as a Gold Sponsor. In October, it was a Bronze sponsor for the 43rd “Annual Interferry Conference”, organised in Cancun (Mexico), contributing USD 4,250.

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7.5 Safety and Security

The Grimaldi Group operates in full compliance with verse weather conditions). These include training, current regulations on health, safety and security in proper shipbuilding methods, appropriate transpor- all the areas in which it does business and requires tation of people and goods, observance of itiner- compliance with and precise application of all the aries and proper nautical maps and assistance in initiatives necessary to ensure the highest quality emergency situations. standards, in line with its Integrated Management The term "security", on the other hand, refers to all System. those measures aimed at protecting shipping and Measures adopted by the Group belong to two transport activities, including the crew, from exog- enous actions that could cause dangerous situa- main areas: safety and security. tions (e.g. piracy, terrorism, smuggling of goods or The term "safety" refers to all measures aimed at people, illegal dumping at sea and other environ- protecting ships, people and goods on board from mental incidents). They include adhesion to and endogenous risks deriving from shipping activities, compliance with national and international regula- which by nature involve dangerous environments tions and conventions aimed at governing the be- (e.g. machine room accidents, fires on board, ad- haviour to be adopted.

All measures aimed at protecting ships, people All measures aimed at protecting shipping and and goods on board from endogenous risks transport activities, including the crew, from deriving from navigation activities, which by exogenous actions that could cause dangerous nature involve dangerous environments (e.g. situations (e.g. piracy, terrorism, smuggling of machine room accidents, res on board, adverse goods or people (migrants), illegal dumping at weather conditions), through training, proper shipbuilding methods, appropriate transportation sea and other environmental incidents), through of people and goods, observance of itineraries adhesion to and compliance with national and and proper nautical maps and assistance in international regulations and conventions aimed emergency situations. at governing the behaviour to be adopted.

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7.5.1 SAFETY pliance with procedures, the Group’s ships are also Protecting the health and safety of ashore and on- subject to external inspections by independent en- board personnel is at the centre of the Grimaldi tities, which vary according to the geographic area Group’s policies, as well as preventing the risk of (Port State Control - PSC “Paris MoU” - inspections). pollution at sea, ensuring security for ships and their As regards the Northern European countries and loads and safety of passengers and infrastructure. Canada, the organisation known as “Paris MoU” PSC REGULATIONS carries out on-board inspections of ships to check that international health, safety and environmental On the subject of managing safe operations at sea standards are correctly applied, as well as to verify and preventing pollution, the Group is subject to the working conditions on the fleet. The frequency of provisions of the International Management Code ship inspections varies with a score calculated on for the Safe Operation of Ships and for Pollution the basis of the company’s performance (conglom- Prevention (International Safety Management (ISM) erate figure for all ships during the last 36 months), Code), approved in an IMO (International Maritime the specific features of each ship (type, age, results Organization) resolution in 1995. of previous inspections, etc.), the ship’s flag, and its The ISM Code defines guidelines for safety manage- classification register. ment and requires that the “Company”, or the en- In US ports, the Group’s ships are, in addition, sub- tity that is responsible for managing safety and pre- venting pollution from ships, define and implement ject to audits by the USCG (United States Coast an appropriate Safety Management System (SMS). Guard), which applies extremely stringent regula- tions, in particular as regards the environment. Addi- The guidelines in the Code establish two types of tionally, in the United States, the Group’s ships have certification, which are periodically checked: the obtained a good score. DOC (Document of Compliance), which is issued to the Company, and the SMC (Safety Management In the other geographic areas where the Group’s Certificate), which is valid for each ship in the fleet. ships operate, excellent performance levels have In addition, the Code establishes that the required also been seen in PSC inspections, and in relation procedures must be documented and defined within to various regional agreements (e.g. South America/ the Safety Management Manual, a document that Vina del Mar PSC, West Africa PSC MoU, Mediterra- must be implemented on each ship and found on all nean MoU, etc.). ships and at the Company’s offices. The statistical data for 2018 shows a significant During 2018, the transfer process for the ships change in the performance indices in the PSC field. owned by Grimaldi Euromed was concluded, under This is due to the ISM management transfer process the ISM (DOC) management of the same company. of the Grimaldi Euromed owned ships that was just concluded. For this reason, it will be possible to All the ships owned by Grimaldi Euromed are now have reliable, homogeneous and comparable data managed, from an ISM perspective, by the same between the two companies next year. company that has been the owner of its own DOC since 2016. In 2018, two detention measures were recorded, one for the Grande Nigeria cargo vessel in the port The Group’s Safety, Quality and Environment Depart- of Hamburg and another for the Cartour Gamma Pax ment (SQE) is responsible for the proper implemen- ship (now MS Corfu). The irregularities found, related tation and the updating of the Safety Management System on board ships and at the company’s offices, mainly to fire prevention equipment, emergency as well as carrying out periodic internal audits and systems and lifeboats, were resolved in a very short organising periodic audits for certification of the two time, five days for both ships. For the two cases, the DOCs and the SMCs for all ships. company managing the ship responded vigorously, putting all possible corrective actions in place with AUDITS AND INSPECTIONS the intention of preventing similar situations occur- In addition to regular internal audits related to com- ring again.

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PSC performance on Grimaldi Group ships with Italian flags 2018 2017 Type No. inspections No. detentions No. inspections No. detentions Paris MoU 77 2 92 2 Africa MoU 27 0 37 0 Mediterranean MoU 20 0 22 0 North America 15 0 11 0 South America 5 0 7 0 Asia Pacific MoU 1 0 2 0

PARIS MOU performance on Grimaldi Group ships with foreign flags 2018 Company No. inspections No. detentions ACL 13 0 Finnlines 31 0

The Group has structured its safety policy by estab- • Number and type of near misses; lishing primary objectives in regards to protecting • Number and type of injuries to personnel; the health and safety of on-board and shore per- • Analysis of the results of safety inspections and of sonnel, preventing pollution, and ensuring the both internal and third-level audits; safety of ships, loads, passengers and infrastruc- • Analysis of the results of certification checks on ture. the various systems implemented (safety-securi- The adoption of a detailed safety management and ty-quality-environment); pollution prevention documented system, with con- • Analysis of the performance of on-board per- tinuous reviews and audit activities, has led to the sonnel; continuous development and implementation of im- • Results of training provided to on-board personnel; provement actions. • Observatory on the entire legislative framework in the naval field. Effective monitoring and analysis of performance in- The companies subject to the ISM Code have pre- dexes, calculated on the basis of measurable data, pared a specific annual exercise protocol for all allows the Group to make fact-based decisions and ships (on the basis of a monthly calendar) on the carry out all possible improvement actions in a con- crete and effective manner. subject of transporting hazardous goods. On the basis of the scenario prepared by the company, all Particular attention is paid to monitoring/measure- crews are trained to tackle an emergency related ment/comparative analysis of the following indica- to accidental spillage of hazardous goods; the said tors: exercise is carried out on a voluntary basis because • Number and type of accidents; it is not provided for in the current legislation.

Safety Management International Ship Security Certificate (SMC): Certificate (ISSC): No. 53 Audit in 2018 No. 51 Audit in 2018

Compliance Compliance Non compliance Non compliance

52 2018 Sustainability Report Cap.7 - We create value for our stakeholders

Accident ratio on board ships fl ying the Italian fl ag/operated ships (2013-2018)

5.0 4.0 3.0 2.0 1.0 - 2013 2014 2015 2016 2017 2018

ON-BOARD ACCIDENT RATE Furthermore, on the night between 10 March and At the end of 2018 an increase was recorded in 11 March 2019, off the west coast of France, near the number of injuries, mostly slight, on board the the Bay of Biscay, the MV Con-Ro Grande America Group’s ships fl ying the Italian fl ag compared to the (owned by Grimaldi Deep Sea), sailing from North previous year. This change is mainly attributable to Europe to ports in West Africa and South America, an increase in the number of injuries involving crews with over 2,200 vehicles and around 360 containers and passengers, and should be read also in light of on board, caught on fi re due to goods stowed on the increase in the number of vessels operated. Inju- board the ship. The crew’s fi re-fi ghting measures had ries to passengers were all slight and attributable to to be stopped when they were forced to abandon mere carelessness. The percentage of these injuries ship in order to prevent any risk to the safety of the to the number of passengers transported remains people on board. The fi re-fi ghting measures, begun however very low, at 0.004% in 2018. on 11 March and coordinated by the French author- In accordance with the current legislation the ities, were interrupted because the ship had begun Group’s ships report all events, even very slight to sustain quite a considerable list. Unfortunately, ones. Campaigns to raise awareness on ships for due to the worsening weather conditions and the monitoring and limiting any negative events are also increasing list of the ship, the Grande America sank continuous. In particular, in order to strengthen fur- on 12 March. The shipowning company immediately ther safety on board its ships, for each event noted moved into action, coordinating fully with the com- the Group has begun a process of analysis for its petent local authorities, to prevent any potential entire fl eet which ends with a report aimed at pre- damage to the marine environment and to recover venting repeats of such accidents. the fallen containers that were fl oating in the sea.

Type of accidents on board ships (no.) 2018 2017 Crew injuries 150 114 Passenger injuries 119 76 Stevedore/Third-person injuries 24 21 Cargo damage (bad weather, OOCC) 12 21 Quay collision (manoeuvre error/bad weather) 26 19 Ship damage (OOCC, anchor loss) 20 16 Accidents with other ships (tugboats, barges, etc.) 0 0 Other 3 33 Total 354 300

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Many measures are adopted to protect the ship, people and goods on board

2018 TRAINING COURSES NO. COURSES NO. PARTICIPANTS

Safety/quality/environment 5 71

Manoeuvre simulator (Deck officers) 7 22

Refresher courses (Chief mates and masters) 5 11

On 15 May 2019, two fires occurred on board the MV • Safety Management System (SMS); Grande Europa, owned by Grimaldi Euromed, on the • Security Management System (ISPS); Salerno-Valencia route. • Integrated quality/environmental management No damage was reported by the crew, while the ship system (IS09001-IS014001); suffered structural damage and was detained at the • Port State Control (PSC) verification procedures. port of Valencia. Grimaldi Euromed quickly launched The manager of the SQE Department, as the Com- a probe into the incident, which is currently being in- pany Security Officer, provides and certifies update vestigated by the Spanish judicial authorities. Three courses to Ship Security Officers every five years members of the crew were detained by the Guardia (chief mates and captains). Civil and appeared before the Court of Valencia on During 2018, 17 internal training courses were pro- 15 June 2019. vided for maritime personnel, addressed to 104 em- ployees. HEALTH AND SAFETY TRAINING Also for 2018, large-scale (on board-ashore) exer- Ground-based training of on-board personnel is cises were held at the offices on the subject of pol- structured by the Crewing Department, based on lution and security (Table Top Exercises). For these assessment notes provided by the manager of the events, experts in the sector (Qualified Individuals) relative on-board section (master, chief engineer or were involved for the anti-pollution procedures in purser). the USA, as well as the national and American au- In most cases, training courses for officers are or- thorities. ganised at the Naples offices, structured into sev- In May 2018, in Naples, a large-scale security exer- eral modules under the responsibility of the various cise was held with the aim of testing the ability to offices. respond to any threats on all ships of the corporate The Safety, Quality & Environment (SQE) Department fleet flying the Italian flag, as well as checking the is responsible for providing the following training correct implementation on board of the procedures modules: in line with the protocol. The exercise was com-

54 2018 Sustainability Report Cap.7 - We create value for our stakeholders

pleted with satisfactory results, with no incongrui- Ocean, West Africa), as well as illegal immigration ties or delays in operations. (e.g. North Africa, West Africa, Greece, etc.), all while In order to strengthen monitoring related to trans- maintaining a suitably alert stance in regards to the port of hazardous goods, companies subject to risks of terrorism. the ISM Code have defined, on a voluntary basis, An intense programme of internal audits on board an annual exercise protocol for all ships. Based on ships, carried out regularly by specialised per- the scenario defined by the Company, all crews are sonnel, makes it possible to ensure satisfactory trained to face an emergency deriving from an acci- implementation of a security management system dental spill of hazardous materials. while maintaining the ship certifications provided ON-BOARD FOOD SAFETY for by the current laws through audits carried out by With reference to management of food products on the relevant authorities. board, the Group, despite outsourcing it to special- In addition to regulatory requirements, the Group ised third party entities, verifies that these entities also promotes supplementary initiatives in terms of meet relevant standards to ensure implementation training and security exercises on land and at sea. of tools suitable to prevent possible contamination of food. Finally, the Group carefully and regularly monitors the issue of irregularities caused by exogenous In particular, during internal on-board audits, the causes, including the number of illegal immigrants implementation status of the Hazard Analysis and recovered (+7% in 2018, compared to 2017 on ships Control of Critical Points (HACCP) self-monitoring flying the Italian flag), irregular access to ships, procedures is verified, as well as the competence cases of smuggling, etc. of operators and support documents. On-board sampling by experts to carry out microbiological During 2018, in addition to the obligatory certifica- analysis that guarantees proper food preservation tion audits of ships on the subject of security (ISSC), completes the self-monitoring system. unannounced inspections were carried out in for- During 2018, no significant non-compliances were eign ports by local authorities (especially in the USA found. and in Northern Europe) aimed at checking com- pliance with different requirements. The deficiency 7.5.2 SECURITY found during one of these inspections in Northern Europe, in the aftermath of the piracy incident on Security management activities, at sea and in port, the ship, was resolved and the relative corrective consist in all the measures adopted by the Group action taken. No irregularities were recorded for the to prevent and control, when possible, all the types other inspections. Furthermore, occasional security of illicit actions that can affect a ship. In regards to security management, the Group complies with na- inspections were conducted in Italian ports and no tional, EU and international standards and regula- irregularities were found. tions that govern all aspects associated with ships The Group has structured its safety policy by estab- and docking ports. The issue of security is gov- lishing primary objectives in regards to protecting erned by the National Maritime Security Programme the health and safety of on-board and shore per- (PNSM), while at the EU level the Group operates in sonnel, preventing pollution, and ensuring the safety compliance with Regulation EC 725/2004 relative to of ships, loads, passengers and infrastructure. improving security on ships and in port structures. Outside the EU, the International Ship and Port Fa- The adoption of a detailed safety management and cility Security Code (ISPS) applies. pollution prevention documented system, with con- tinuous reviews and audit activities, has led to the The Group has made a firm commitment to en- continuous development and implementation of im- suring the highest security standards on its ships. provement actions. This is achieved by providing continuous training for on-board personnel, both on land and at sea, Effective monitoring and analysis of performance in- and through the supplying of resources, structures dexes, calculated on the basis of measurable data, and equipment aimed at mitigating security threats, allows the Group to make fact-based decisions and again on land and at sea, above all in geographic carry out all possible improvement actions in a con- areas subject to the threat of piracy (e.g. the Indian crete and effective manner.

2018 Sustainability Report 55 Cap.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- board Group ships and include activities that allow bining a global vision of the market with traditions students to familiarise themselves with professions and family values is decisive. The union of these two at sea. A solution to identify and focus the decisions aspects allows the Group to develop initiatives that of young people towards jobs close to them, and to are not only business and customer oriented, but also develop skills and professional talents that are rec- socially responsible. In particular, the Tourism Offi ce ognisable and valued in the job market. develops partnerships with entities, institutions and Grimaldi Educa (Grimaldi Educates) is a project de- associations working on social issues, which have veloped by the Group, dedicated to training young led to the creation of sustainable travel programmes people in middle and high school. Its objectives in- and charitable activities. clude stimulating excellence at school and contrib- Always attentive to the cultural development of the uting to the mobility of young people with guided Italian and Neapolitan social networks in which it tours and educational trips which are safe, cheap and operates, the Grimaldi Group has developed coop- respectful of the environment, and assisting teachers erative relationships with schools and the academic in the selection of educational trips and in the crea- sector for years, both in Naples and in other Italian tion of training projects that involve students through cities. practical activities. In addition, special initiatives and discounts for individual or class trips are reserved for The Grimaldi Group’s attention to social issues students. The Grimaldi Educa - Navigando si Impara reaches also to international questions with the (By Sailing we Learn) project was agreed in 2015 with launch of the partnership with NGOs, the UNHCR a memorandum of understanding with the Italian and other non-profi t bodies, providing continual con- Ministry of Education, University and Research. tributions for free transport on its ships of voluntary personnel, containers of humanitarian aid and other Through the Grimaldi Lines brand and together with material. Between 2010 and 2017 more than 200 the Catalunya Tourism Board, the Grimaldi Group or- people and loads were transported in the context of ganised a conference on Inclusive School Tourism. these actions. Among the distinguished speakers were the Under- secretary of State with a Family and Disability man- 7.6.1 INVESTING IN THE FUTURE: date, the President of the Italian National Agency COLLABORATIONS WITH for the Deaf (Ente Nazionale Sordi - ENS) and of the Italian Union of Blind and Partially Sighted People ASSOCIATIONS, UNIVERSITIES (Unione Italiana Ciechi e Ipovedenti - UICI), and a AND RESEARCH INSTITUTES representative of the Italian Ministry of Education, Through the Grimaldi Lines brand, the Grimaldi Group University and Research (MIUR). The end objective is proposes every year many diff erent training oppor- not only to make not only educational trips but also tunities. These are educational courses for nautical, the proposed alternating school-work activities com- tourist, hotel and technical institutions, off ering in- pletely accessible to students with disabilities. The dustrial, electrotechnical, IT, mechanical, transport project is still at an early stage and has a lot of room and logistics training. The programmes are held on for development.

56 2018 Sustainability Report Cap.7 - We create value for our stakeholders

Technical and professional high schools, such as nau- possibility of gaining work experience on board the tical, technical, tourist and hotel schools, are the focus Grimaldi ships. It also rewarded youngsters who dis- of the Navigando Si Impara training courses, aimed at tinguished themselves with merit during the National combining theoretical preparation with practical activ- Competitions organised by the Italian Ministry of Edu- ities carried out on board Grimaldi Lines ships. These cation, University and Research (MIUR) and dedicated programmes can be personalised, and the duration to students of nautical and tourist technical institutes of the trip can be adjusted in line with the PON (Na- and hotel professional institutes. Grimaldi Lines made tional Operative Programme) / POR (Regional Opera- six weekends available on board the fl agships Cruise tive Programme) frameworks and alternating school/ Roma and Cruise Barcelona, in permanent service work projects. between Civitavecchia, Porto Torres and Barcelona. As in previous years, the Group awarded to two stu- In 2018 the Group also organised “on-board events” dents with the best school performance a scholar- for schools, with activities dedicated to students with ship of € 1,000 in honour of Guido Grimaldi, and the high training content:

IFS - Impresa Formativa Simulata aMare Leggere (Simulated Formative Company) Now at the sixth edition, aMare Leggere is Organised in partnership with Educational the festival of literature for young people on Tour and CONFAO, it constitutes a curricular the sea, created in partnership with “Leggere: activity and enables students to learn real work tutti”. A four-day voyage-event with destination processes through simulation of setting up Barcelona to bring young people closer to and managing virtual businesses that operate the world of literature and books, with writing, online, assisted by real companies. The project journalism and photography meetings and enables students to operate as if they were in a workshops, projections of fi lms and plays. For company, through the creation, in their school, High Schools it is also possible to provide for of a laboratory company in which it is possible to the performance of school-work alternation represent and experience the typical functions activities with the related certifi cation. 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.

Travel Game on Board IFS - On-board Fair A voyage-event dedicated to Italian high schools As a continuation of the IFS project Grimaldi during which the students compete in a didactic Lines has launched the “On-Board Fair” on its and interactive quiz game on topics extracted ships. This has already reached the 11th edition, from the study programme, and on general and represents for students an important culture, monuments and tourist sights related to occasion for discussions and learning and a the trip. The students of schools having made good opportunity to increase the “turnover” of an express request can take part in the “Travel their company. Stands are set up on the ship Game Work on Board” where activities related where the young people display the products of to school-work alternation are planned and their companies, conclude sales and purchases student can have the certifi cation of digital skills with virtual currency, discuss and compare their and transversal activities carried out on the ship. experiences.

2018 Sustainability Report 57 Cap.7 - We create value for our stakeholders

The fl eet’s fl agships also host themed events

High school game The science ship and creative science atelier Now at the seventh edition, it is the national Voyage-events for middle schools organised in educational competition dedicated to students partnership with Educational Tour and OpusLab, of the 4th and 5th years of public and private their activities are in line with the indications high schools. The event, invented and organised of the Italian Ministry of Education, University by Planet Multimedia, has the aim of promoting and Research (MIUR) on “Creative ateliers culture with interactive and multimedia and workshops for key skills". On the ships, technologies that actively involve young people. laboratory and educational testing spaces are Grimaldi Lines, the main partner of the event, set up with 3D printers, Arduino and Theremino hosts the fi nal on board one of the fl agships of boards, Shields, sensors, electronic components the fl eet (Cruise Roma and Cruise Barcelona), at that make it possible to create real and proper harbour in the port of Civitavecchia. 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.

A Ship of Books for Barcelona SEAmphony In partnership with Educational Tour and A cultural event created in partnership with “Leggere: tutti”. On World Book Day and Saint Castellarte, this voyage-event involves George’s Day, Barcelona is fi lled with roses and choirs and orchestras of middle schools with books. It is the custom, in fact, that on this day specialisation in music. During the stay on- men give a rose to women who respond with board, the students fi nd themselves face-to- a book. During the trip, a full entertainment face in a real festival of music at sea. During programme is put on: readings, plays, projections the stopover in Barcelona, the experience is of fi lms and debates in the presence of famous enriched by a visit to the Palau of Catalan Music, writers. the only concert hall declared by UNESCO part of the World Heritage of Humanity.

58 2018 Sustainability Report Cap.7 - We create value for our stakeholders

In 2018, the Group entered into collaborations with University of Rome; “Luiss Guido Carli” International universities and higher education schools. Specifi - University; “Suor Orsola Benincasa” University of cally, our agreements with the leading universities Naples; the University of Salerno; the University of in Campania and Italy have been renewed to pro- Palermo; the University of Naples “L'Orientale”; “Tor vide undergraduates the opportunity to intern in Vergata” University of Rome; “Bocconi” University; the company’s various departments. The universi- University of Campania “Luigi Vanvitelli”. ties and schools with which we have an agreement include: the “Parthenope” University of Naples; the 20 internships were carried out in 2018 in the fol- University of Naples “Federico II”; “La Sapienza” lowing departments:

01 Passenger Department 07 Short Sea Commercial Department

02 Port Cost Controller 08 Energy Saving

03 Claims & Legal 09 Grimaldi Euromed General Accounting

04 Human Resources

05 Freight & Budget Control

06 Finance

In 2018, the Group renewed its agreements for the barkation/training of 20 engine cadets, on the other embarkation/training of deck and engine cadets hand, began from 2017/2018. The students from the with various nautical institutes. The agreement with fi rst cycle subsequently took a certifi cation exam the ITS Catania Higher Technical Institute includes to complete the classroom course and went on to the embarkation/training of 10 deck cadets and 10 board, in order to complete the training period and engine cadets and was started in 2016/2017, as was take the consecutive exam for their license. the agreement with the ITS MO.SO.S foundation The Group has also supported the training mis- (advanced technical training for sustainable mobility sion of the “Duca degli Abruzzi” Institute in Naples, and the sea) of Cagliari, that involved 6 deck cadets taking part in the “Let’s orientate ourselves outside and 4 engine cadets. In both cases, after taking the of school’ PON (National Operative Programme) certifi cation exam, the students who completed the and allocating two scholarships of € 1,000 for a fi rst cycle boarded as Third Offi cers. deck and an engine cadet respectively. In 2018, the The agreement with the IFTS (ForMare Training Group also signed agreements with the State Insti- Centre-Confi tarma/Campania Region) Higher Ed- tutes for Higher Education, ISIS “F. Caracciolo” in ucation and Technical Training Centre for the em- Procida and the “Cristofaro Mennella” in Ischia, that

2018 Sustainability Report 59 Cap.7 - We create value for our stakeholders 2018 €2,190,360 spent The Grimaldi on social projects Foundation Onlus Investment commitments was founded in 2007 by the shipowner for additional €9,000,000 Emanuele Grimaldi and is a non-profit that pursues exclusively purposes of social 43 active projects solidarity

provide for the boarding of two worthy students at Strongly rooted in the Naples area, the Grimaldi the end of the school year: a deck cadet and an en- Foundation Onlus is today a reference point in the gine cadet. field of solidarity, working on projects in favour of Other collaborations with the academic and scho- families in difficulty, financing deserving associa- lastic worlds include two agreements signed with tions/voluntary bodies, and supporting families of 16 the University of Bari and with the ITS Foundation seafarers in economic difficulty . Mo.So.S. (Mobilità Sostenibile Sardegna - Sardinia The Foundation is the leading private family foun- Sustainable Mobility) for the launch of new mas- dation in the Centre and South of Italy for amounts ter’s courses. Furthermore, at the IPE (Institute for disbursed; since 2018, it has increased its role in so- Research and Educational Activity) of Naples, two ciety, changing from a Disbursement Foundation to scholarships were offered, for an amount of € a Management Foundation. This year it presented 4,000 each, to the best students in the Master’s assets of € 22.5 million, financed mainly by do- programme in International Management: Strate- nations from Emanuele Grimaldi and the Grimaldi gies, Shipping and Logistics for foreign markets, in Family. memory of Guido Grimaldi. Every year, the Foundation benefits from a grant Lastly, the Group has offered a donation of € 5,000 from the Grimaldi Group as a percentage of net to SRM, the Southern Italy Centre for Study and Re- profits achieved by the three Italian companies search based in Naples, for the Maritime Economy Grimaldi Group, Grimaldi Euromed and Grimaldi project, which resulted in a portal that collects Deep Sea, and the contributions that benefactors working studies and analyses on maritime eco- decide to allocate to its activities. All the assets and nomics. income of the Foundation are used for charitable Among the subsidiaries, Minoan Lines cooperates purposes or invested in low-risk securities (corpo- with the most important educational institutions and rate bonds with high rating, guaranteed policies and offers work opportunities through its own job cen- government securities) the income from which is re- tres. Promoting equality and equal opportunities invested in charitable activities. in the sector in which it operates is the Company’s From the start of its activities, the Foundation has main objective and is supported at all levels of the been giving contributions to numerous local, na- administrative structure. tional and international non-profit associations with a view to annual and multi-annual collaboration 7.6.2 THE GRIMALDI FOUNDATION ONLUS and support, fundamental for implementing and The Grimaldi Foundation Onlus was founded in achieving the objectives of the project. 2007 at the behest of Emanuele Grimaldi. Since The Grimaldi Foundation Onlus decided to divide then it has been a non-profit that pursues exclu- the management of its projects into three mac- sively purposes of social solidarity. ro-groups:

16) 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.

60 2018 Sustainability Report Cap.7 - We create value for our stakeholders

Some of the main projects that the Foundation has carried out during 2018 are given below:

"La Casa di Tonia" Project Financing of the remodelling and running of a property lo- cated in Via Foria (Naples) to be partially used as a home for young mothers and partially as “La Bottega dei an area for artisanal and entre- Semplici Pensieri” preneurial activities where the Project young mothers can work to The project aims to restore obtain a salary. independence and an abili- “Je Sto Vicino a Te” ty to work in differently-abled Project young people with the help of Support for the young people tutors and via the creation of a and teachers of the Scampia travelling catering spot that is Hotelier Institute (outskirts of self-managed to organise par- Naples) in organising free wai- ties and make “cocktails” and ting/cooking/bar courses and refreshments. theatre. It also offers a library and a summer camp.

RIMALDI FOUNDATION ONLUS “Viva gli Anziani” Project Partnership agreement with Projects in the Community of Sant’Egidio to support the elderly in Cam- collaboration with pania by monitoring them and the dioceses in the providing visits, prevention province of Naples and combating social isola- Contributions to parishes wi- tion. This project is intended thin Naples and the province to become an integral part of aimed at providing them with the Family School Project in Projects for functional spaces in which to Naples. the families of provide assistance to families collaborators in the and children in difficulty, to fi- maritime sector who ght against situations of social are in difficulty hardship. This category of projects is aimed at providing material support to situations of family hardship with dependent mi- nors, related to deaths, disabi- lities or illnesses of seafarers and collaborators in the mari- time sector.

• Social Welfare Projects; the Fondazione Costruiamo il futuro, the Fondazione • Projects to support Seafarers and Collaborators; Condorelli, the Associazione Italiana Parkinsoniani, • The Family School. the Associazione Livia Dumontet, the Associazione Some examples of the social projects that the Foun- dations donates to include: the Comunità di recu- Cantori Posillipo, and the Lega Italiana Lotta ai Tu- pero Lautari, the Centro Accoglienza Vincenziana, mori.

2018 Sustainability Report 61 Cap.7 - We create value for our stakeholders

Nine shipwrecked people saved by the Grande Lagos vessel deployed on the North Europe - West Africa Central Express service

On 17 October 2018, the Foundation signed an containers of humanitarian aid and other materials, agreement to take over the former Bianchi Institute as well as with rescue operations of refugees or on gratuitous loan for use and future purchase for shipwrecked people at sea. over € 10 million. The Bianchi institute is one of the • On 6 January, the Grande Lagos vessel, de- oldest and most prestigious buildings in the centre ployed on the North Europe - West Africa Central of Naples. Express service, saved nine shipwrecked people The building is spread over 11,000 m2, which will from a Nigerian vessel that sunk a week before be entirely assigned to house the activities of the while it was sailing from Lomé (Togo) to Douala Family School, the social project managed by the (Cameroon). The nine surviving members of the Foundation to help low-income families in the prov- crew, which originally had 13 members, were ince of Naples, with specific activities for parents, found over 60 miles off the coast, dehydrated and the elderly and children. exhausted, and were brought on board. The crew For the first time, the Foundation has organised, of the Grande Lagos offered them the required financed and managed free parenting and af- assistance. The shipwrecked crew then disem- ter-school courses for families from the city of Na- barked in Douala, where they were handed over ples and the surrounding province (SPES-F). In this to the local Port Authority. context, in 2018 the Foundation started a collabo- • On 13 January, while sailing from the port of Bari ration with the AAA Accogliere Ad Arte community, to Patras, the MV Eurocargo Trieste was ordered which promotes the beauty of the city of Naples by the Greek Coast Guard to deviate from its route with the help of the professional categories that to save two members of a crew from the trimaran work closely with tourists. AAA Accogliere Ad Arte Moonshadow flying the American flag. The oper- accompanies the parents of the SPES-F on guided ation was successful, saving the two shipwrecked tours of the city of Naples, bringing them up close to crew members, who disembarked in the Greek the cultural and artistic heritage. In the future, it will port of Lefkada in good health conditions. help parents to guide their children on a discovery • In April, the Grimaldi Group offered free boarding of the beauty of the capital of Campania, telling to the “FeG Auslands und Katastrophenhilfe” them and passing onto them what they have seen (Confederation of Free Evangelical Churches in and learnt from this experience. Germany): the humanitarian organisation’s 16.5- metre truck was transported on the 13 April from Ancona to Patras on board the vessel Cruise 7.6.3 HUMANITARIAN AID Olympia. The vehicle was transporting foodstuffs, In the humanitarian field, in 2018 the Grimaldi Group furniture, clothing and medical supplies to a fa- was active through partnerships with NGOs, the cility of the “Hellenic Scripture Union” located in United High Commissioner for Refugees (UNHCR), Kifissia near Athens. The truck then returned to parishes, non-profit organisations for the free trans- Ancona on the 19 April on board the same ship. port in their own vehicles of volunteer personnel, • On 27 June, the ship Spes rescued three mem-

62 2018 Sustainability Report Cap.7 - We create value for our stakeholders

bers of the French crew of the Abahanna, a 12- fl oating raft where the rescue team was waiting. metre sailboat that sunk in the Ionian Sea between This was a particularly complex rescue, due to the Sicily and the Peloponnese. The three men, aged considerable distance from the coast and the pro- between 70 and 91 years, were able to reach the hibitive sea conditions.

ACL understands and supports the positive externalities ACL FOR SOCIETY 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, avai- lable for the needs of the community where ACL operates. ACTWELL strengthens Atlantic Container Line’s commitment in supporting these activities all over North America and in Europe, where it can make the most signifi cant contribution. In the United States, Canada and the European countries where ACL operates, the funds allocated converge in favour of several non-profi t associations and organisations that perform an important role for the local community.

FINNLINES FOR SOCIETY Finnlines supports various activities and orga- nisations, one of which is the “Aamu Paediatric Cancer Foundation”, of which it is a partner once again this year. Furthermore, Finnlines has made its ships available to the Rynkeby - God Morgon Finland Team: in June 2018, around 300 cyclists started their journey towards Pa- ris from Helsinki to raise funds for children with cancer. In 2018, the Rynkeby Team donated a record amount of €886,372 to the Finnish or- ganisations.

Minoan Lines recognises the importance of being socially respon- MINOAN LINES FOR SOCIETY sible. The company fi rmly supports a purely anthropocentric phi- losophy with the desire to serve as a model for the way in which companies should operate within the community. Management is aimed at socially aware individuals and aims to earn their trust and make a real diff erence in the community in which it operates. Awareness of social responsibility has led the company to a se- ries of sponsorships, with the objective of improving, encouraging and rewarding meritorious initiatives, and with the aim of returning some of the fi nancial benefi ts to the local community of Crete and of continental Greece. The sponsorship action plan of Minoan Lines covers a vast range of benefi ciaries such as sports teams, museu- ms, cultural associations, educational institutions, cultural centres and various non-profi t organisations.

2018 Sustainability Report 63 8 Environmental responsibility

he Grimaldi Group operates in compliance with once a year to review the Quality and Environmental Tlaws, regulations and other international, na- Management System, and every time it is deemed tional and local norms in effect and applicable to en- necessary to hold additional meetings. In 2018, the vironmental and management aspects of the corpo- Committee met to draft the annual improvement rate activities, products and services, within the field plan, later presented to the 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 pro- an Internal Quality and Environment Committee. cesses that meet the criteria of efficiency, efficacy The Committee, presided over by the Quality/Envi- and reduction of impacts. ronment Director, consists of the heads of various While a single Group-level environmental policy is departments and sectors within the Group, and still being defined, the subsidiaries are moving for- prepares an Improvement Plan once a year, for ap- ward with significant energy efficiency initiatives, proval by the BoD. The Committee meets at least 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 Pol- or international ones. lution from Ships), ratified in 2001 by 161 member In the international realm, the International Maritime countries of the IMO, and aimed at minimising pol- Organization (IMO)17 is the main body that defines lution from hydrocarbons, toxic liquid substances global standards to govern environmental, health transported in bulk, toxic substances transported on and safety performance in the maritime sector pallets, black/grey water (sewage), solid waste, and worldwide. emissions of toxic gases. All ships from countries that have signed the Marpol Convention are subject to the related provisions, re- gardless of the location in which they are navigating and the country in which the ship docks may carry out

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

64 2018 Sustainability Report Cap.8 - Environmental responsibility

on-board inspections to check the degree of compli- 2030 of at least 40% compared to 2008, with the ance with international standards, detaining the ship hope of reducing them by 70% by 2050. in port in the case of significant non-compliance. • Reducing the emissions of greenhouse gases pro- In order to quickly respond to developments in en- duced by international shipping and reducing the vironmental legislation, the Group has established total annual emissions of greenhouse gases by at a permanent observatory that monitors progress in least 50% by 2050 compared to 2008. regulations and promptly prepares any needed im- Furthermore, from 1 January 2020, all fuels used in plementation procedures. ships, the so-called bunker that currently predomi- nately consists of fuel oil with a sulphur content of Additionally, latest-generation technological devices 3.5%, will have to be 0.5% globally, unless emis- have been installed on the ships recently constructed sion reducing systems are used. The International in Chinese shipyards that were delivered in 2017. Maritime Organisation’s (IMO) Marine Environment These are known as scrubbers, exhaust gas purifica- Protection Committee (MEPC) revised the terms tion systems on the ships engines, which consider- of annex VI of the MARPOL convention that was ably reduce impurities in the gases before they are adopted in 2009. released into the atmosphere (sulphur in particular). This continued in 2018 also with the installation of The European Commission, with the publication of the system on the Grande Lagos, Grande Dakar, its White Paper on the Future of Europe, has estab-

Zeus Palace and Cruise Ausonia ships. lished that CO2 emissions coming from maritime transport must be reduced by at least 40% with re- In the maritime transport sector, identification of spect to 2015 levels, by 2050. To that end, in 2013 strategies that improve fleet energy efficiency offers the Commission developed a strategy to integrate a dual advantage - on one hand it helps to reduce the reduction of maritime emissions within a wider the environmental impact of operations, and the European policy to reduce greenhouse gas emis- other it reduces procurement costs, as fuel is the sions, focused on the following objectives: largest cost item for naval operators. Hence, it is a

“win-win” strategy. In fact, the economic advantage 1. monitoring, reporting and verifying CO2 emissions for the company translates into similar advantages from ships with gross tonnage exceeding 5,000 for the environment and communities. tonnes, on routes with at least one port of call within an EU member state; In order to reduce the quantity of CO2 emissions of the shipping industry, in line with the targets of 2. defining targets for the reduction of greenhouse the Paris Agreement adopted by the United Nations gas emissions from maritime transport; in 2015, in April 2018, the IMO reached a historical 3. defining and implementing other tools, including agreement on climate with the adoption of an ini- market-based mechanisms, with an eye to the me- tial strategy for reducing greenhouse gas emissions dium-long term. produced by international shipping, including a spe- With reference to the first objective, in 2015 Regu- cific reference to the pathway of reduction of CO2 lation (EU) 2015/757 took effect on the monitoring, emissions in keeping with the targets of the Paris reporting and verification of carbon dioxide (CO2) Agreement. emissions generated by maritime transport, also The IMO’s strategy sets the objectives of: known as the EU MRV (Monitoring, Reporting, Verifi- cation) Regulation. • Reducing the intensity of harmful emissions of In order to be compliant with Regulation (EU) carbon dioxide (CO ) of ships through imple- 2 2015/757, the Group created a Monitoring Plan for menting the Energy Efficiency Design Index (EEDI), each company ship which shows the CO2 emis- adopted by the IMO in 2011, with which new de- sion sources present on board the vessel, the pro- sign targets were established through indices that cedures for measuring fuel consumption and the identify efficiency by category of ship. methods for calculating CO2 emissions produced in • Reducing the intensity of harmful emissions of ratio to the load transported, passengers, miles trav- carbon dioxide (CO2) of international shipping elled and hours of navigation. The actions described for transport activities through a decrease in the in the plans were translated operatively into imple- emissions of carbon dioxide per tonne-km as an mentation of an ICT system for data collection and average for international maritime transport, by processing.

2018 Sustainability Report 65 Cap.8 - Environmental responsibility

In addition, each Group ship has its own Ship Energy with dedicated forms to assess CO2 emissions pro- Efficiency Management Plan, with the goal of plan- duced on each voyage. ning, implementing, monitoring and measuring its own environmental performance. The Plan also in- Every ship also has an International Energy Effi- dicates standard procedures and dedicated actions, ciency Certificate approved by the company RINA as well as annual objectives for emissions reduction, (Registro Italiano Navale - Italian Naval Registry).

8.2 Our approach to the challenges of the future

8.2.1 THE INTEGRATED agement, quality and environmental system, with MANAGEMENT SYSTEM the creation of a single management manual that In order to effectively manage its business and describes its operation. guarantee customer and stakeholder satisfaction The Integrated Management System adopted by in terms of the quality of services provided, safety the Group covers the Italian companies Grimaldi in operations, protection of workplace health and Group S.p.A., Grimaldi Euromed S.p.A. and Grimaldi safety and reduction of environmental impacts, the Deep Sea S.p.A., which have completed the pro- Grimaldi Group has developed an integrated man- cess of making their quality and environment

66 2018 Sustainability Report Cap.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 ac- counting for CO2 emissions produced in relation to loads transported, using international proce- dures such as ISO 14064-1, ISO 50001, MRV, etc. - Identifi cation of actions aimed at reducing emissions from various activities subject to carbon foot- print 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, which is cargo transported per nautical mile performed by its vessels, that are considered the most effi cient ones globally.

management systems compliant with the stand- For example, in the case of spills at sea, an emer- ards ISO9001:2015, for the quality guarantee, and gency protocol is immediately activated, on the ISO14001:2015, for compliance with environmental basis of which a company Crisis Management Group requirements during construction, development, meets and procedures based on contingency plans production and assistance. are begun (for more information, please see section These certifi cations were issued by the certifi ca- 8.4). tion body (Registro Italiano Navale - Italian Naval Another important pillar of the Integrated Manage- Registry) to the three aforementioned companies ment System is management of suppliers and moni- and cover the management of maritime transporta- toring of their activities. In fact, special care is taken tion of freight and passengers with owned and/or in reviews done by management and by all the com- leased ships. To this end the new manual and the pany departments involved in the processes. new management procedures were implemented; Finally, after audits, the three main Italian compa- these introduced the concept of risk assessment nies of the Group were recently granted by the Cus- into management of the corporate processes in the toms Authorities full (customs safety and security) areas of quality and the environment. AEO (Authorised Economic Operator) status, which In relation to the Group’s environmental pro- is the highest level of recognition in terms of cus- grammes, monitoring plans have been prepared for toms reliability and security in the context of the water, ground and air emissions with related plans logistics supply chain. Recently, the AEO recogni- to eliminate and reduce the same. Additionally, an- tion was assimilated, and is therefore equivalent, to ti-pollution procedures have been implemented the analogous certifi cations issued by the Japanese which include personnel training and exercises, in- and American authorities (C-TPAT: Customs-Trade cluding joint land/sea exercises. Partnership Against Terrorism).

2018 Sustainability Report 67 Cap.8 - Environmental responsibility

The main investments in innovation and eco-sustainability include the lengthening and refurbishment programme of the fleet's two flagships, Cruise Roma and Cruise Barcelona

Prestigious awards received year after year from concept in the management of company processes the Group’s main customers also testify to the regarding quality and the environment. level of excellence the company has achieved (e.g. The foreign companies of the Group are also in- awards issued by leading global car manufacturers, creasingly aware of structured management of en- including Ford, GM, Fiat, etc.). vironmental and social issues, so as to monitor the The revision of the Quality Manual led to the intro- most critical aspects and implement suitable man- duction and strengthening of the risk assessment agement and prevention measures.

8.3 We invest in innovation

During 2018, the companies of the Grimaldi Group • Cruise vessels lenghtening (completion of oper- have moved forward with numerous projects aimed ation June 2019): € 80 million for actions aimed at reducing the environmental impacts of its ships, at increasing the load capacity by lengthening the through interventions that included: two flagships. This investment plan will make the • reblading and Promas Lite system installation on Group’s fleet even more efficient, with environ- 12 ships, with an average 15% reduction in CO mental benefits involving a greater reduction in 2 CO emissions per cargo unit; emissions; 2 • installation of scrubber systems on four ships with • lengthening and efficiency-increasing interven- a subsequent SOx reduction; tions for 6 Finnlines Ro-Ro ships (begun in 2017 • analysis of the “bulbous bow modification” re-bulb and completed in 2018), with an investment of € project that was implemented on five of the fleet’s 70 million. vessels, after a fluid dynamic study of the water During 2018, the Group continued to implement the lines of the new bulb, optimised for the operating following projects and interventions: conditions of the ships concerned. The re-bulb • Scrubbers: in order to comply with regulatory re- project led to an 8% increase in hull efficiency quirements which, as of 2020, establish sulphur in operating conditions, with savings of 14,000 emission limits of less than 0.50% for all ships,

tonnes of CO2 per year; as well as of 0.1% for ships operating in the ECA • maintenance and upgrading of the silicone coat- areas, the Group has invested in the installation of ings on ships that stopped in dry docks. scrubber systems, with reduction powers that offer These interventions entailed an investment of ap- SO/CO ratios, in the smokestack, lower than mag- proximately € 33 million. nesium oxide combustion, reducing emissions of Additionally, the Group has envisaged a new invest- particulate and unburned fuel by around 70%. ment plan for which foresees: By the end of 2018, 32 Group ships were fitted with scrubbers. The scrubber installations invest-

68 2018 Sustainability Report Cap.8 - Environmental responsibility

ment plan for 2018-2020 will include 52 ships, 8.3.1 GRIMALDI GREEN 5TH with an investment of approximately €150 million. GENERATION (GG5G) Furthermore, in 2019-2020, an additional 6 Pure Car During 2017 a study of the fleet’s new Ro-Ro ships & Truck Carriers with hybrid scrubbers will be deliv- was carried out, after which an order for 12 new hy- ered. brid cargo vessels was signed with Asian shipyards • Zero Emissions in Port project: This project in 2018 currently under construction. These new aims to allow ships to stay in port with the aux- ships, which are expected to be delivered starting iliary engines turned off, and therefore without from 2020, will be able to transport more than 7,800 said engines causing emissions. To achieve this linear metres of rolling stock, equivalent to about objective, the Cruise Roma and Cruise Barce- 500 trailers. The loading capacity of the garages of lona ships will be equipped with 976 lithium-ion these ships is twice that of the largest ships currently batteries (NMC type) for a total of approximately operated by the Neapolitan Group and three times 5.5 MWh. These batteries, which were ordered in that of the previous generation of Ro-Ro ships, but 2018 and which will be installed during 2019, will with the same fuel consumption at the same speed. be recharged while sailing, drawing the required This means twice the efficiency measured in con- energy from the alternators directly connected to sumption / tonne transported. the propulsion engines (which are much more effi- cient than the traditional auxiliary engines usually The design of the new constructions entitled used during a normal stay in port). “Grimaldi Green 5th Generation” (GG5G) was devel- The energy that is generated and stored in this oped by the Group’s Technical and Energy Saving way will then be used in port to fuel the ship’s sys- Department in partnership with the Danish naval de- tems: lighting, ventilation, air conditioning, ship au- sign studio Knud E. Hansen. These are the first ex- tomation, ballast pumps, safety systems, as well as amples of a new series of hybrid Ro-Ro ships, which others, thus allowing the set goal to be achieved. use latest-generation engines, controlled electroni- Regarding the duration of the charge of these bat- cally and powered by fossil fuels, with treatment of teries, the target is to guarantee 3.5 hours of ze- the exhaust gases at sea (SOx emissions and PM ro-emission stays in port. To this end, optimisation appropriately treated and reduced with post-com- criteria will be adopted to distribute the electrical bustion systems) and electricity during stays in port, loads in this condition, which will be called “ECO guaranteeing “zero emissions in port”. Port Mode”, in order to minimise unnecessary electrical absorption as much as possible. During stays at the quay, they are capable of meeting The chosen batteries have a guaranteed lifecycle the energy demands of on-board activities with just of ten years, after which they will be taken back electricity stored in lithium batteries that are re- by the manufacturer, who will recycle 85% of their charged during navigation by shaft generators and components. by 600 m2 of solar panels.

2018 Sustainability Report 69 Cap.8 - Environmental responsibility

Grimaldi Green 5th Generation

An air flow system beneath the keel creates a carpet of tiny air bubbles under the hull. These bubbles, which are released in the direction of travel, reduce hydrodynamic friction to hull advancement and consequently fuel consumption (and the relative har- mful emissions). The keel is painted with special pain- ts with a low surface roughness, whi- ch make it possible to reduce friction with the water.

During stays in port, a set of extremely powerful lithium batteries comes into operation. They are roughly the equivalent of those on 90 Tesla Model S and, once operational, they can power for 8 hours the fans that ventilate the garages during the loading and unloading of trailers, as well as all on-board systems (lights, air conditioning, internal ramps, etc.). It is due to these sy- stems that the hybrid ships can guarantee zero emissions in port. When sailing on rough seas, the batteries keep the load factor of the engines constant, absorbing energy peaks with the rise and fall of the wave. This peak shaving system allows consumption, and therefore emis- sions, to be reduced.

HIGHLY INNOVATIVE TECHNOLOGICAL SOLUTIONS THAT WILL BE ADOPTED ON THE GG5G:

70 2018 Sustainability Report Cap.8 - Environmental responsibility

8.3.2 RESEARCH PROJECTS in various market segments: cars (Toyota Mirai, AND INNOVATION Honda Clarity, Hyundai Nexo) and buses (VanHool, Mercedes, Toyota). Also in 2018, the Grimaldi Group co-financed var- ious research projects through its participation in The Group is extremely interested in experimenting the Horizon 2020 and CEF Transport Call 2018 pro- with hydrogen technologies to reduce environ- grammes. mental impact and to reduce the energy consump- tion of ships during port logistics operations. One of the most important initiatives is the partici- pation in the “Lean Ships” project, financed by Euro- The construction and testing of a new electric “hy- pean Union’s framework programme Horizon 2020, drogen-powered” vehicle are conducted within for research and innovation, which aims to demon- the European project (H2PORTS) financed by the strate the effectiveness and reliability of technolo- Fuel Cells and Hydrogen Joint Undertaking (FCH gies that offer energy savings and emission reduc- JU) platform, which aims to introduce hydrogen as tions on a large scale. The objective of the project is an alternative energy carrier in the port industry, to promote technological innovation that can render by developing efficient and innovative zero-emis- existing ships more efficient and less polluting. sions solutions. The latter include a Ro-Ro truck Within the project, the Grimaldi Group works with for loading/unloading operations and a mobile hy- the Dutch company Marin and the Finnish company drogen refuelling station, which will provide the Wärtsilä to design and optimise Energy Saving De- necessary fuel to vehicles and will be tested in a vices (ESDs) for Car Carrier ships with variable pitch real environment in the Port of Valencia. Grimaldi propellers, in order to demonstrate potential energy will see to the construction of the hydrogen vehicle savings. In particular, Marin and Wärtsilä will be re- and its testing under real operating conditions at sponsible for designing the ESD to be installed on the Valencia Terminal Europa. board a Group ship on which tests will be carried The project will last 4 years, divided as follows: out. The objective is to demonstrate an increase 2 years for the design stage and 2 years for the in propulsion efficiency upstream and downstream demonstration stage. The project, which was pre- from the propeller. The project began in June 2016 sented in 2018, will come to a close at the end of and ended in April 2019. 2021. During 2017, the ESD to be installed on board one of Grimaldi will also participate in the 2018 CEF Trans- our Group ships was defined, after numerous trials port Call with the FEDeRATED project. This tender in a naval tank which showed energy savings and, calls for the creation of projects that address objec- therefore, a fuel consumption saving of 3%. tives and priorities to support the political guidelines The Grimaldi Group also participated in the of the third Clean Mobility Package. Therefore, the H2PORTS project, a European project that gener- European funding is focused on transversal trans- ally aims to assess the potential of hydrogen tech- port objects, such as digitisation, road safety and nologies in port logistics operations. multi-modality. Grimaldi is highly interested in experimenting with Specifically, the FEDeRATED project is part of the innovative “hybrid” power units for industrial vehicle Innovation and New Technologies topic, specific propulsion, which have already been designed and objective 8 (Digital information system). The aim of applied to the propulsion of light vehicles and cars. objective 8 of the 2018 CEF call is to support the These innovative power units use hydrogen tech- development and validation of a digitised system nologies with “zero” local impact to considerably along the main European corridors according to the increase the range of electric vehicles and bring “corridor information system”. This name references it in line with traditional vehicles. The refuelling the creation of a federative system of public and time is just a few minutes and, more than anything private IT platforms that can share data and infor- else, the volumes and weights of the systems are mation for the better management and planning of considerably less than traditional electric vehicles. goods along the logistics supply chain. Hydrogen vehicles are already industrial products .

2018 Sustainability Report 71 Cap.8 - Environmental responsibility

Environmental performance Despite an increase in cargo transported, the Group has significantly reduced

SO2 e CO2 emissions

Thanks to this funding, the Group intends to create levels with the subsequent consumption and emis- a system for monitoring performance in real time sion savings, to measure the time spent and/or the that can monitor the ships wherever they are. This miles travelled in the area of the ECC, to integrate system will automatically acquire vessel perfor- this data with the management software of compa- mance data (for example, power, speed, fuel con- nies in order to automate manual operations and sumption, weather, etc.) directly from the navigation allow external operators to check the ships that are and automation systems and the various sensors. transporting their cargo. By way of example, thanks to this software the The implementation of an IT security plan is also Group will be able to calculate for each refitting in- tervention (such as reblading, the application of a planned, with the installation of firewalls and silicone coating, the installation of ESD) the saving switches installed on board all ships, thereby al- produced by the investment and the amortisation lowing a significant increase in the bandwidth period for every re-fitting and re-blading operation. currently in use by converting the limited 350 MB Furthermore, it will be able to promptly intervene monthly traffic into a FLAT solution with Very Small to maintain the performance of the ship at optimal Aperture Terminal (VSAT) technology.

8.4 Environmental performance

In order to reduce environmental impacts associated with its activities, the Grimaldi Group constantly mon- ATMOSPHERIC EMISSIONS itors the main negative externalities associated with Maritime transport is one of the most sustainable its energy consumption, production of harmful emis- transport modes, above all when compared with sions and waste generation. road transport, as has been shown in studies and

72 2018 Sustainability Report Cap.8 - Environmental responsibility

analysis done globally and at the European level. For This result was achieved thanks to investments in en- a more specific comparison, the Group has estab- ergy and operational efficiency projects. lished procedures to compare the environmental im- In relation to other harmful emissions, starting in 2014 pact of short sea trailer transport on the Group’s lines the Group began a system that carefully collects and ships with respect to the same transport done on and monitors figures related to sulphur dioxide (SO2) land. emissions. From 2016-2018, against a 7% increase in

From 2016-2018, direct emissions of CO2 per nau- Group operated ships, SO2 emissions fell by 13% per tical mile generated by the Group’s activities fell by nautical mile. This trend attests to the Group’s desire 2%, despite a 7% increase in the number of operated to pursue the objectives set by the IMO as regards ships and a rise in the volumes of cargo transported. the reduction in SO2 emissions.

2018 Sustainability Report 73 Cap.8 - Environmental responsibility

FUEL company crisis management group meets and the The main energy vector used by the Group is procedures established in existing plans are imple- bunker18 acquired to supply ships. mented (e.g. SOPE - Ship Oil Pollution Emergency - Plan, Vessel Response Plan). The crisis manage- During 2018, the quantity of fuel acquired increased ment group consists of the managers of the fl eet by 3%, mainly due to an increase in active ships operating offi ces and has the task of coordinating during the year. all the targeted actions aimed at minimising impacts The Chartering and Bunkering Department pays as much as possible, as well as providing assis- extremely close attention to containing costs and tance to the ship by working with any third parties searching for new suppliers in the destination mar- involved (e.g. local authorities, action/containment kets for ships, in order to obtain the best possible companies, insurers, tugboats, classifi cation enti- conditions, while also monitoring product quality ties, fl ag authorities, etc.). and carefully managing any problems that may arise during ship refuelling activities. WASTE Bunkering activities are performed observing the Finally, relative to waste, the Group promotes the current regulations. During the said operations au- use of on-board incinerators with the aim of re- dits and controls can be carried out by the port au- ducing the amount of solid waste unloaded while in thority in the fi elds of safety and the environment. port, obviously in full compliance with limits/restric- In order to ensure the least environmental impact tions established in the current regulations. possible, in the case of fuel spills at sea, the Group Around 8% of biodegradable waste produced immediately activates an emergency protocol. A during the year is disposed of at sea.

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

2018 2017 2016

7% 8% 12%

93% 92% 88%

DisposalSmaltimento on landa terra DisposalSmaltimento at sea in mare

18) Fuel oil used to power ship movement.

74 2018 Sustainability Report Cap.8 - Environmental responsibility

1% Freight residue Operating 7% 5% 6% waste

Food 8% 9% 8% waste

10% 10% 11% Plastic

Domestic 19% 20% 20% waste

28% 27% 27% Sludge

Bilge 27% 29% 28% water

2018 2017 2016

WATER mechanical, physical, chemical, biological pro- In 2017 the Ballast Water Management (BWM) Con- cesses, singularly or jointly, approved by the reg- vention came into force. This IMO international con- ulations, such as treatments based on UV, ozone, vention controls the management of ballast water sodium hypochlorite, inert gas or simply refl ux. and sediments. The purpose of the Convention is In order to comply with this Convention, the Group to minimise and ultimately eliminate transmigration, prepared management plans and manuals with the through the said ballast water, of harmful aquatic related mitigation procedures for existing ships, micro-organisms and pathogens from one area to while on board new ships under construction the another of the planet, a phenomenon that damages installation of modern ballast water treatment sys- the environment, human health, biodiversity and tems has begun, which meet the technical specifi - the various industries involved (fi shing, agriculture, cations outlined by the IMO. tourism). Currently Ballast Water Treatment systems are in- With entry into force of the BWM Convention, ships stalled on 14 ships and will gradually be installed on must subject ballast water loaded on board to the all ships that come into dry dock.

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 ca- tion 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 vessels are faster, eco-friendlier and more effi cient than the previous ones, 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 gua- rantee further that the ship recycling plant complies with all the stan- dards required, ACL sends to the site a dedicated team to monitor every aspect of the operation.

2018 Sustainability Report 75 Cap.8 - Environmental responsibility

In 2018, Finnlines signed an order for 3 Ro-Ro ships from the Chinese shipyard, Jinling, which are expected to be delivered from 2020-2021. The project was a collaboration with the Nordic ship designer Knud E. Hansen and; thanks to FINNLINES FOR THE ENVIRONMENT the high level of technological innovation, the- se new green Ro-Ro ships will be some of the most modern and ecological in the Baltic. The vessels will have latest-generation engines that guarantee less fuel consumption and the lowest

CO2 emissions, and will be equipped with purifi - cation systems to reduce sulphur emissions and other particulate matter. These will be new hy- brid Ro-Ro vessels that will use fossil fuels while sailing and electricity while in port, thereby gua- ranteeing “zero emissions in port”. During 2014-2017, Finnlines also invested in propulsion and re-blading by optimising the propeller blades on nine ships. Six Ro-Ro ships, built between 2011-2012, were extended by the end of 2018 and the increase in capacity has reduced energy consumption per unit transpor- ted compared to the original ships. Thanks to the company’s constant improvement eff orts, the total fuel consumption of its ships has de- creased almost 30% in the last 10 years. Furthermore, since 24 October 2018, the com- pany has certifi ed its quality management system according to the international ISO 9001:2015 standard, while the Finnlines Plc ma- nagement system was approved by Lloyd's Re- Minoan Lines has taken the global drive to reduce emis- gister Quality Assurance Limited according to sions very seriously and is being proactive. Indeed, the the ISO 14001:2015 standard. company has decided to invest €12 million to reduce the

CO2 footprint of its fl eet and, more generally, to improve the results achieved on the Greek green coast. Mino- an Lines has committed itself to installing scrubbers for exhaust gas purifi cation by April 2019, 8 months before the 1 January 2020 deadline, so as to comply with the new international legislation on emissions. The use of the scrubbers will not only allow it to be in line with interna- tional legislation, but will also allow it to eliminate almost MINOAN LINES FOR THE ENVIRONMENT all harmful emissions from its ships, eliminating 97-98% of sulphur oxides and 70-80% of particulate matter. Furthermore, the company is also committed to always being compliant with both national and international regulations and is subject to strict quality certifi cation procedures, which are renewed annually. Some exam- ples of these certifi cations include: ISO 9001:2015; ISO 22000:2005; ISO 14001:2015; MARPOL 73/78 pollution prevention certifi cate (at sea). Minoan Lines’ ecological philosophy can also be seen in its management’s decision to eliminate plastic from the bars, self-service areas and restaurants on board and re- place it with biodegradable and environmentally-friendly materials. The shops on board its fl eet also use biodegra- dable or reusable bags.

76 2018 Sustainability Report Objectives 9

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 transport. For this reason, the Group continues to set itself challenging objectives to be achieved in the short and medium term.

Activity implemented Activity in course Activity not begun

Area of commitment Objective Action • Installation of new exhaust gas treatment systems • Installation of waste heat recovery systems Reduction of • Use of lithium batteries which store energy at sea to be Energy efficiency and environmental later used in port, reducing emissions to zero during reduction of emissions footprint stopovers • Implementation of renewable energy systems on board ships Extend the environmental • Define a Group environmental policy management system to all the Group’s navigation Quality, safety and companies environmental ISO9001/14001 Quality/ • Revision of the quality and environmental manual in management Environmental Manual line with ISO9001 and ISO 14001 standards system Revision Start of training courses • Start of training courses for officers (workplace safety) Promote Corporate • Develop activities carried out in the environmental, Communication Social Responsibility training and social sectors within the Group • Carry out development plans for land positions • Take advantage of crew experience and skill • Restructure the training programme along officers’ en- Retention policy for Train maritime staff Officers and crew growth tire career and development • Strengthen professional profile for emerging manage- rial issues • Involve specialised trainers and senior staff with a pro- fessional on-board background

2018 Sustainability Report 77 Cap.9 - Objectives

• Working with the IT Department, develop a data ware- house system to collect and analyse passenger (quan- titative and qualitative) data, in anonymous form. • Constantly analyse and monitor Call Center perfor- mance • Analyse the feasibility of a customer loyalty programme • Develop a fast check-in procedure • Keep internal and external work procedures up to date, to increase the efficiency of services offered, including Increase customer providing training updates to department staff and pe- satisfaction levels and ripheral offices continue monitoring work performance for • Implement monitoring of the on-board services offered on-board personnel at and the performance of external suppliers, working to Service quality sea, as well as that of improve diversification and personalisation of products the suppliers of on-board and activities services, in order to • Increase social activities increase user satisfaction and loyalty • Greater synergies between the relevant land-based departments, ticketing personnel and the on-board sections to guarantee users a more efficient service • Continue investments in digital communication: com- plete the development of the new grimaldi-lines.com website, to further improve the booking services (B2C/ B2B) • Constantly monitor department and partner perfor- mance, ensuring productive standards are always sat- isfactory • Preparation of the documentation and immediate im- plementation of the management systems on board new vessels under construction in Chinese shipyards. • Establishment of an internal working group between the Safety, Quality and Environment Office and the commer- cial offices of Naples and London to optimise/reduce the number of operating instructions for Ro-Ro transport • Completion of the transfer of all Grimaldi Eu- Management of romed-owned ships managed under ISM, with the new security during Improve and increase at sea operations efficiency in Group Euromed DOC and pollution performance • Revision of the SMS manuals of the two companies prevention managed under ISM • Improvement of ship performance in terms of PSC in- spections, accidents, injuries, results, audits, etc. • Establishment of a multi-departmental work group to study and implement the operating improvement ac- tions introduced by the strategic action plan approved by the DPA • Revision/optimisation of the collections of work circu- lars/instructions

78 2018 Sustainability Report Commitment List 10

esides the projects carried out in the last few years, the Group is committed to developing a long- Bterm view where the objectives set incarnate the corporate vision and ambitions. In this way, the Group stimulates 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 initiatives of young people and their families in the Naples area ONLUS Naples area Alleviate situations of great family difficulty Grants to families of collaborators, in proportion to their real needs of seafarers and collaborators of the fleet, with young children, in a condition of need Contribute to the medical research and Donations in this area treatment of cancer and other diseases Counter social difficulty through support to Management on its own and in partnerships of projects in favour of the family model and income parents, old people and children of disadvantage family units CUSTOMERS Constant quality improvement In regards to on-board services, in addition to improving the quality of existing services, we have begun to work on a special hospitality project for children, with special treatment just for them Increase quality of passenger boarding Specifically, for the boarding/un-boarding stage, a renovation project for the ticket offices has been defined, with the addition of monitors that can provide detailed information to customers in real time; furthermore, we also added and improved the fast check-in at some ports and for some connections SAFETY, Preparation of documentation for new units The activity will be completed for the delivery of the new ships, starting QUALITY to be delivered in 2019 from autumn 2019 AND THE ENVIRONMENT Review of ship security plans The plans for the MVs Cruise Roma and Cruise Barcelona have been reviewed after their lengthening. The security plans for the rest of the ships are currently being reviewed. Improvement of the performance of ships PSC inspections, accidents, injuries, results of audits-etc.

Digitalisation of the procurement process By digitally archiving tender documentation and digitally issuing the order Direct purchase via the web of components Improvement of ship technical inspection protocols and services with a low value (less than Introduction of a training course for chief mates on the subject of safety in € 500 during the exploratory phase) with the workplace evident savings in time and means Organise visits to the headquarters of the PSCs of Northern Europe and with the High Command of Harbour Offices Establish a protocol with greater detail/frequency on the subject of assessing the performance of captains and chief engineers Improvement of ship procurement management procedures 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 Office, identify solutions and supplies that by purchasing products that increase their 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 Develop activities carried out in the environmental, training and social within the Group sectors. Increase the degree of customer satisfaction Continue investments in digital communication: complete the development and try to increase their loyalty. of the new grimaldi-lines.com website, to further improve the booking service (B2C/B2B)

2018 Sustainability Report 79 AppAppendixendix

Materiality Analysis Process

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 arti- cles 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 em- ployees 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 impor- tance and appropriateness over the long term for each issue identified. External stakeholders’ point of view was determined by considering the aggregate results of the bench- mark 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.

80 2018 Sustainability Report 2018 SustainabilityAppendix Report

Reconciliation table for material issues and GRI standards Selected GRI Internal External GRI Aspects indexes Material issue impact impact Innovation and sustainable Economic performance 201-1 development, √ √ investments in the community Economic Procurement policies 204-1 Supply Chain √ Energy 302-1 Energy efficiency √ Emissions 305-1, 305-7 Emissions √ √ Exhaust and waste 306-2 Waste √ √ Environment Employment 401-1, 401-3 Focus on people √ Workplace health and safety 403-1, 403-2 Health and safety √ Valorisation of Training and education 404-1 Social Human Resources √ Valorisation of Diversity and equal opportunity 405-1 Human Resources √ Anti-corruption 205-3 Business Ethics √ √ Anti-competitive behaviour 206-1 Business Ethics √

Company Compliance 419-1 Business Ethics √ The reporting perimeter

Economic/financial data The perimeter corresponds to that of the Consolidated Financial Statements at 31 December 2018. Personnel data In order to provide a more complete picture of data on the personnel, starting from the 2016 edition of the Re- port, the perimeter of the data comprises not only the companies included in the 2018 Consolidated Financial Statements, but also twenty-two 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 sub- sidiaries, 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 S.A., Scandinavian Auto Logistics A/S, Euro-Med Ireland Logistics Ltd, Grimaldi Germany GmbH, Grimaldi Belgium NV, CETAL Srl, Antwerp Euroterminal NV, Grimaldi Terminal Barcelona SL, Wallhamn AB, 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 Srla, 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, Mi- noan Lines SA and Malta Motorways of the Sea Ltd. The remaining companies employ only shore personnel. Environmental Data For environmental figures, the reference perimeter is: Grimaldi Deep Sea SpA, Grimaldi Euromed SpA, Finnlines Plc, Atlantic Container Line AB, Minoan Lines SA and Malta Motorways of the Sea Ltd.

2018 Sustainability Report 81 AppAppendixendix

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 2018. In fact, as highlighted in the “Fifth Report on the Maritime Economy – Maritime cluster and development in Italy”19, due to the special nature of maritime work, the number of employees is lower than the number of positions because of the effect of the shift system worked by em- ployees at sea. The other indicators, unless otherwise specified, represent the situation on 31 December 2018 as provided for in the GRI “Sustainability Reporting Standards”.

TOTAL GROUP PERSONNEL U.M. 2018 2017 2016 Shore personnel No. 5,321 5,069 4,905 EU No. 4,140 3,877 3,715 Non-EU / Rest of world No. 1,181 1,192 1,190 Maritime personnel No. 10,674 9,248 9,399 EU No. 8,426 6,311 6,372 Non-EU / Rest of world No. 2,248 2,937 2,456 Total No. 15,995 14,317 13,733 401-1: RECRUITMENT AND TERMINATION BY GENDER, AGE GROUP AND COUNTRY OF ORIGIN 20

SHORE PERSONNEL - HIRES BY GENDER U.M. 2018 2017 2016 Men No. 372 425 314 Men % 65% 71% 68% Women No. 203 173 151 Women % 35% 29% 32% Total No. 575 598 465 SHORE PERSONNEL - TERMINATIONS BY GENDER U.M. 2018 2017 2016 Men No. 338 283 294 Men % 73% 71% 77% Women No. 124 113 89 Women % 27% 29% 23% Total No. 462 396 383

SHORE PERSONNEL - HIRES BY AGE U.M. 2018 2017 2016 <30 years No. 223 249 166 <30 years % 39% 42% 36% 30-50 years No. 273 268 241 30-50 years % 47% 45% 52% >50 years No. 79 81 58 >50 years % 14% 14% 12% Total No. 575 598 465 SHORE PERSONNEL - TERMINATIONS BY AGE U.M. 2018 2017 2016 <30 years No. 168 117 109 <30 years % 36% 30% 28% 30-50 years No. 194 180 189 30-50 years % 42% 45% 49% >50 years No. 100 99 85 >50 years % 22% 25% 22% Total No. 462 396 383

19) Centro Studi Investimenti Sociali (centre for research into social investment) - CENSIS - for Federazione del Mare (Italian maritime federation) 20) The reporting perimeter covers 95% for 2018, 2017 and 2016 regarding shore personnel.

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SHORE PERSONNEL - HIRES BY GEOGRAPHICAL AREA U.M. 2018 2017 2016 Italy No. 144 163 147 Italy % 25% 27% 32% Spain No. 15 22 22 Spain % 3% 4% 5% Greece No. 1 5 3 Greece % 0% 1% 1% Finland No. 88 74 48 Finland % 15% 12% 10% Sweden No. 151 157 128 Sweden % 26% 26% 28% United Kingdom No. 22 41 17 United Kingdom % 4% 7% 4% Malta No. 1 0 0 Malta % 0% 0% 0% Germany No. 17 22 10 Germany % 3% 4% 2% Belgium No. 50 46 38 Belgium % 9% 8% 8% Other countries No. 86 68 52 Other countries % 15% 11% 11% Total No. 575 598 465 SHORE PERSONNEL - TERMINATIONS BY GEOGRAPHICAL AREA U.M. 2018 2017 2016 Italy No. 71 33 16 Italy % 15% 8% 4% Spain No. 5 1 2 Spain % 1% 0% 1% Greece No. 8 6 4 Greece % 2% 2% 1% Finland No. 72 78 54 Finland % 16% 20% 14% Sweden No. 130 140 105 Sweden % 28% 35% 27% United Kingdom No. 39 33 23 United Kingdom % 8% 8% 6% Malta No. 1 0 0 Malta % 0% 0% 0% Germany No. 19 20 9 Germany % 4% 5% 2% Belgium No. 55 37 30 Belgium % 12% 9% 8% Other countries No. 62 48 140 Other countries % 13% 12% 37% Total No. 462 396 383

401-3: PARENTAL LEAVE21

SHORE PERSONNEL WITH THE RIGHT TO PARENTAL LEAVE U.M. 2018 2017 2016 Men No. 202 613 598 Women No. 185 350 324 Total No. 387 963 922

SHORE PERSONNEL WHO USED PARENTAL LEAVE U.M. 2018 2017 2016 Men No. 65 74 61 Women no. 81 84 81 Total No. 146 158 142

21) The reporting perimeter covers 95% for 2018, 2017 and 2016 regarding shore personnel.

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SHORE PERSONNEL RETURNING TO WORK AFTER PARENTAL LEAVE U.M. 2018 2017 2016 Men No. 63 63 59 Women No. 66 57 61 Total No. 129 120 120

SHORE PERSONNEL RETURNING TO WORK AFTER PARENTAL LEAVE, STILL EMPLOYED 12 MONTHS AFTER RETURN U.M. 2018 2017 2016 Men No. 55 56 73 Women No. 50 50 62 Total No. 105 106 135

PARENTAL LEAVE RETURN RATE OF SHORE PERSONNEL U.M. 2018 2017 2016 Men % 233% 115% 107% Women % 161% 133% 103% Total % 190% 122% 105%

PARENTAL LEAVE RETENTION RATE OF SHORE PERSONNEL U.M. 2018 2017 2016 Men % 87% 95% 99% Women % 89% 82% 98% Total % 88% 84% 99%

403-2: INJURIES AND INJURY RATE, CASES OF OCCUPATIONAL DISEASE, DAYS LOST, ABSENTEEISM AND NUMBER OF FATAL ACCIDENTS 22

SHORE PERSONNEL23 - INJURY RATE (IR)24 U.M. 2018 2017 2016 Italy i 2.1 1.8 2.6 Men i 2.0 2.1 2.9 Women i 2.4 1.0 1.6 Spain i 4.4 4.4 2.8 Men i 6.4 6.5 5.2 Women i 0.0 0.0 0.0 Finland i 5.6 4.2 8.7 Men i 7.1 5.5 11.9 Women i 0.9 0.0 0.0 Sweden i 14.7 15.0 7.1 Men i 16.7 12.0 9.2 Women i 11.0 20.5 2.8 United Kingdom i 1.4 0.5 0.5 Men i 0.0 0.8 0.8 Women i 3.7 0.0 0.0 Germany i 0.0 1.7 0.6 Men i 0.0 3.2 0.0 Women i 0.0 0.0 1.3 Belgium i 11.2 6.6 7.8 Men i 18.2 10.7 12.6 Women i 0.0 0.0 0.0 Other countries i 12.3 15.3 9.8 Men i 14.2 16.7 11.3 Women i 3.0 8.4 2.7 Total i 6.7 7.4 6.0 Men i 8.3 8.8 7.9 Women i 2.5 3.7 1.2 22) 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. 23) The reporting perimeter covers 82% for 2018, 2017 and 87% for 2016 regarding shore personnel. The reporting perimeter covers 83% for 2018 and 100% for 2017 and 2016 regarding sea personnel. 24) IR = (total injuries/total hours worked) x 200,000.

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MARITIME PERSONNEL - INJURY RATE (IR) U.M. 2018 2017 2016 Italy i 3.51 2.88 3.44 Men i 3.57 2.9 3.53 Women i 1.43 2.15 1.11 Greece i 2.08 1.07 0.96 Men i 2.06 1.16 2.72 Women i 2.32 0 3.09 Finland i 3.59 2.85 3.09 Men i 3.49 2.14 2.05 Women i 4.09 6.69 8.11 Sweden i 1.89 0.77 0.76 Men i 1.82 0.51 0 Women i 2.12 1.56 3.28 Other countries i 1.08 0.97 1.51 Men i 1.09 0.98 1.54 Women i 0 0 0 Total i 2.7 1.93 2.35 Men i 2.7 1.85 2.23 Women i 2.69 3.29 4.24

SHORE PERSONNEL - OCCUPATIONAL ILLNESS RATE (OIR)25 U.M. 2018 2017 2016 Italy i 0.5 0.5 1.0 Men i 0.5 0.5 1.1 Women i 0.5 0.5 0.5 Spain i 2.2 2.9 4.2 Men i 3.2 4.3 7.8 Women i 0.0 0.0 0.0 Sweden i 1.3 0.9 0.0 Men i 0.7 0.0 0.0 Women i 2.4 2.4 0.0 United Kingdom i 43.7 2.0 0.5 Men i 49.1 3.3 0.0 Women i 35.3 0.0 1.2 Germany i 0.58 0 0 Men i 1.07 0 0 Women i 0 0 0 Belgium i 0 0.43 0 Men i 0 0.65 0 Women i 0 0 0 Other countries i 0.27 0.26 0 Men i 0.34 0.1 0 Women i 0 1.05 0 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. 2018 2017 2016 Italy i 11.5 8.54 10.1 Men i 11.3 8.49 10.2 Women i 18.5 10.75 4.8 Greece i 4.2 2.67 2.2 Men i 4.3 2.61 2.4 Women i 2.3 3.33 0.0 Sweden i 0.47 0 0 Men i 0 0 0 Women i 2.12 0 0 Other countries i 2.91 1.36 2.36 Men i 2.86 1.33 2.41 Women i 7.51 3.63 0 Total i 6.48 3.86 4.69 Men i 6.55 3.94 4.94 Women i 5.39 2.56 0.71

25) OIR= (total cases of occupational disease/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 2018 Sustainability Report 85 AppAppendixendix

SHORE PERSONNEL - SEVERITY INDEX (SI) 26 U.M. 2018 2017 2016 Italy I 165.8 132.3 154.9 Men i 208.0 168.6 201.2 Women i 41.7 24.6 19.3 Spain I 117.9 87.9 56.9 Men i 171.7 129.5 106.5 Women i 0.0 0.0 0.0 Finland I 42.0 62.6 109.6 Men i 54.8 82.1 149.2 Women i 2.6 0.0 0.0 Sweden I 297.4 65.6 13.2 Men i 393.5 4.0 12.1 Women i 122.1 177.5 15.4 United Kingdom I 43.7 60.1 36.2 Men i 49.1 100.2 22.0 Women i 35.3 0.0 58.0 Germany I 0.0 13.4 25.8 Men i 0.0 20.3 0.0 Women i 0.0 5.1 57.7 Belgium I 176.9 72.0 81.3 Men i 226.8 117.0 132.2 Women i 0.0 0.0 0.0 Other countries I 40.9 48.9 48.4 Men I 46.0 55.7 44.1 Women I 16.0 14.4 70.0 Total I 94.5 70.9 75.9 Men I 119.6 88.1 93.3 Women I 27.2 24.9 29.9

MARITIME PERSONNEL - SEVERITY INDEX (SI) U.M. 2018 2017 2016 Greece I 154.6 66.40 49.5 Men i 168.4 72.19 50.8 Women i 0.0 0.00 35.3 Finland I 193.66 69.04 81.03 Men i 186.94 59.46 71.32 Women i 225.22 120.51 127.9 Sweden I 10.84 5.78 0 Men i 10.3 2.05 0 Women i 12.73 17.19 0 Other countries I 0 2.84 4.53 Men i 0 2.89 4.63 Women i 0 0 0 Total I 44.6527 15.9 17.39 Men I 41.43 13.37 15.01 Women I 94.57 50.05 54.75

26) IG = (days of work lost/hours worked) x 200,000.

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SHORE PERSONNEL - ABSENTEEISM RATE (AR) 27 U.M. 2018 2017 2016 Italy no. 8,568.45 7,663.96 8,058.48 Men no. 6,094.21 5,089.74 5,206.30 Women no. 15,997.28 15,332.99 16,387.40 Spain no. 1,230.00 3,480.35 6,104.72 Men no. 678.34 1,159.90 2,065.51 Women no. 2,610.92 8,667.47 10,862.62 Greece no. 2,295.23 18,053.30 9,570.30 Men no. 3,725.99 20,936.93 9,061.33 Women no. 912.89 15,131.70 10,092.56 Finland no. 9,229.85 9,434.64 9,047.51 Men no. 9,427.14 10,044.65 9,893.10 Women no. 8,647.05 7,600.03 6,708.67 Sweden no. 14,439.64 14,148.16 11,270.01 Men no. 11,346.77 11,115.46 10,698.46 Women no. 20,037.43 19,622.61 12,363.00 Great Britain no. 4,791.82 4,144.70 5,107.47 Men no. 4,831.65 3,363.90 3,171.82 Women no. 4,729.90 5,237.87 7,965.58 Malta no. 7,375.89 7,062.15 6,524.82 Men no. 7,659.57 8,474.58 7,234.04 Women no. 6,808.51 4,237.29 5,106.38 Germany no. 12,633.56 13,263.23 11,929.74 Men no. 8,396.60 9,864.31 8,801.80 Women no. 17,373.07 17,217.02 15,699.98 Belgium no. 10,936.07 9,750.33 9,649.08 Men no. 10,860.56 10,983.06 9,747.30 Women no. 11,059.91 7,783.40 9,493.15 Rest of the world no. 2,167.21 2,093.70 2,055.32 Men no. 1,830.06 1,715.66 1,835.05 Women no. 3,779.65 3,948.28 3,101.42 Total no. 6,677.60 7,198.04 6,592.94 Men no. 5,421.93 5,765.45 5,270.11 Women no. 9,963.26 10,899.61 9,955.67

SHORE PERSONNEL- DEATHS U.M. 2018 2017 2016 Italy no. 1 0 0 Men no. 0 0 0 Women no. 1 0 0 Greece no. 0 0 0 Men no. 0 0 0 Women no. 0 0 0 Other countries no. 1 0 0 Men no. 1 0 0 Women no. 0 0 0 Total no. 2 0 0 Men no. 1 0 0 Women no. 1 0 0

27) AR = (total days absent/total days worked) x 200,000.

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MARITIME PERSONNEL - DEATHS U.M. 2018 2017 2016 Italy no. 1 0 0 Men no. 1 0 0 Women no. 0 0 0 Greece no. 1 0 0 Men no. 1 0 0 Women no. 0 0 0 Other countries no. 1 1 1 Men no. 1 1 1 Women no. 0 0 0 Total no. 3 1 1 Men no. 3 1 1 Women no. 0 0 0

EXTERNAL WORKERS - DEATHS 28 U.M. 2018 2017 2016 Italy no. 0 0 1 Men no. 0 0 0 Women no. 0 0 1 Total no. 0 0 1 Men no. 0 0 0 Women no. 0 0 1

EXTERNAL WORKERS - INJURY RATE (IR) 29 U.M. 2018 2017 2016 Italy i 7.78 28.01 11.95 Men i 7.83 28.26 12.43 Women i 0.00 0.00 0.00 Sweden i 24.50 18.63 11.15 Men i 25.48 18.25 11.93 Women i 22.13 19.68 7.82 Other countries i 1.27 0.41 1.18 Men i 1.50 0.48 1.37 Women i 0.00 0.00 0.00 Total i 9.48 9.61 5.05 Men i 9.05 9.60 5.37 Women i 11.59 9.61 3.24

403-1: INJURIES AND INJURY RATE, CASES OF OCCUPATIONAL DISEASE, DAYS LOST, ABSENTEEISM AND NUMBER OF FATAL ACCIDENTS

PERCENTAGE OF LAND-BASED EMPLOYEES BELONGING TO A MINORITY U.M. 2018 2017 2016 Minorities % 1% 1% 1% Managers % 4% 3% 3% Executives % 1% 1% 1% Employees % 1% 1% 1% Workers % 0% 0% 0%

PERCENTAGE OF LAND-BASED EMPLOYEES BELONGING TO A VULNERABLE CATEGORY U.M. 2018 2017 2016 Minorities % 1% 1% 1% Managers % 1% 1% 1% Executives % 1% 1% 2% Employees % 2% 2% 2% Workers % 0% 0% 0%

28) The reporting perimeter covers 31% in 2018, 2017 and 2016. 29) The reporting perimeter covers 31% in 2018, 2017 and 2016.

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ENVIRONMENTAL INDEXES

306-2: TYPE OF WASTE PRODUCED AND DISPOSAL METHOD

WASTE U.M. 2018 2017 2016 Total waste produced, by type m3 110,235 103,362 108,852 Plastic m3 11,318 10,317 11,980 Food waste m3 8,635 8,932 8,522 Domestic waste m3 20,631 20,446 21,451 Waste from operations scraps m3 7,295 4,996 6,530 Freight residue m3 39 1,227 800 Sludge m3 30,796 27,455 29,073 Bilge water m3 30,119 29,668 30,205 Other m3 1,402 321 292 Total waste produced, by disposal method30 m3 110,235 103,362 108,852 Authorised disposal at sea m3 8,099 8,205 13,286 Offloaded on land/incinerated on board m3 102,136 95,157 95,566

SHIPS OPERATED BY THE GRIMALDI GROUP FROM 2016-2018

SHIPS OPERATED BY THE GROUP U.M. 2018 2017 2016 Ships31 no. 122.9 119.5 114.8

GRI Content Index

KPMG S.p.A. provided a limited audit of the Grimaldi Group’s Sustainability Report at 31 December 2018, (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 94 of this document. The information summarised in the table below (Content Index) was included under the limited audit. Any other information was not subject to auditing.

GENERAL STANDARD DISCLOSURE Profile Description Reference page / Direct response disclosure ORGANISATIONAL PROFILE 102-1 Organisation name Grimaldi Group SpA 102-2 Main brands, products and services § The Grimaldi Group 102-3 Registered offices of the organisation Via Amari Emerico 8, 90139, Palermo (PA), Italy 102-4 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 102-5 Ownership structure and legal form § The Grimaldi Group 102-6 Markets served (including geographic analysis, sectors § The Grimaldi Group served, types of customers and beneficiaries) 102-7 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

30)The reporting perimeter covers 80% in 2018, 2017 and 2016. 31) 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.

2018 Sustainability Report 89 AppAppendixendix

GENERAL STANDARD DISCLOSURE Profile Description Reference page / Direct response disclosure 102-8 Total number of employees, subdivided by gender, § Our people country and contract type 102-9 Main supply chain characteristics relative to core § Our suppliers and agents business 102-10 Significant changes during the accounting period § Methodological information regarding: size, structure, ownership structure and In 2018, there were no changes involving the supply chain of the organisation organisational structure, ownership structure or the supply chain that would influence compari- son with other administrative periods. 102-11 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. 102-12 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 eco- nomic, environmental and social performance. 102-13 Participation in national and/or international trade § Institutions and trade associations associations STRATEGY AND ANALYSIS 102-14 Declaration of the highest decision-making entity § Letter to stakeholders regarding the importance of sustainability to the orga- nisation and its sustainability strategy 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 § Model 231 and the Code of Conduct § Compliance GOVERNANCE 102-18 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 STAKEHOLDER INVOLVEMENT 102-40 List of stakeholder groups with which the organisation § Our stakeholders and channels for dialogue engages. 102-41 Percentage of employees covered by collective con- § Our people tract agreements 102-42 Standards for identifying and selecting the main sta- § Our stakeholders and channels for dialogue keholder groups with which to engage 102-43 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 102-44 List of key themes arising from stakeholder engage- § Materiality analysis ment and description of the organisation’s response IDENTIFICATION OF MATERIAL ISSUES AND ACCOUNTING PERIMETER 102-45 List of entities included in the consolidated financial § Methodological information statements or equivalent documents § The Grimaldi Group § Appendix - The reporting perimeter 102-46 Explanation of the process used to determine the con- § Methodological information tent of the Financial Statements and the method used § Materiality analysis by the organisation to implement the relative reporting standards 102-47 List of material issues identified during the process to § Materiality analysis define the contents of the Financial Statements § Appendix - Reconciliation table for material issues and GRI Standards 102-48 Information restatements § Methodological information The informa- tion provided within the GRI was modified to respond to the new GRI Standards

90 2018 Sustainability Report 2018 SustainabilityAppendix Report

GENERAL STANDARD DISCLOSURE Profile Description Reference page / Direct response disclosure 102-49 Most significant changes with respect to the previous § Methodological information reporting period, with reference to perimeters and § Governance system and business ethics objectives REPORT PROFILE 102-50 Reporting period for information provided § Methodological information 102-51 Date of publication for the most recent sustainability The 2018 Sustainability Report was published in report the month of July 2018. 102-52 Reporting period Annual 102-53 Contacts for information about the report and its [email protected] content [email protected] 102-54 Selection of “in accordance” with GRI Standards § Methodological information 102-55 GRI Content Index § GRI Content Index 102-56 Policies and practices implemented to obtain external § Independent Auditor’s Report assurance for the Report

SPECIFIC STANDARD DISCLOSURE

KPI Description Direct response ECONOMIC PERFORMANCE 103-1 Identification of material issue and accounting § Materiality analysis perimeter § Materiality Analysis Process 103-2 Management approach § Economic performance: creating shared value 103-3 Evaluation of management approach § Economic performance: creating shared value 201-1 Direct economic value generated and distributed § Economic performance: creating shared value SUPPLY POLICIES 103-1 Identification of material issue and accounting § Materiality analysis perimeter § Materiality Analysis Process 103-2 Management approach § Our suppliers and agents 103-3 Evaluation of management approach § Our suppliers and agents 204-1 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. ANTI-CORRUPTION 103-1 Identification of material issue and accounting § Materiality analysis perimeter § Materiality Analysis Process 103-2 Management approach § The governance system 103-3 Evaluation of management approach § The governance system 205-3 Corruption cases identified and corrective actions During the reporting period for this document, taken no cases of corruption occurred. ANTI-COMPETITIVE BEHAVIOUR 103-1 Identification of material issue and accounting § Materiality analysis perimeter § Materiality Analysis Process 103-2 Management approach § Compliance 103-3 Evaluation of management approach § Compliance 206-1 Number of legal cases relative to anti-competitive, § Compliance anti-trust or monopolistic behaviour

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SPECIFIC STANDARD DISCLOSURE

KPI Description Direct response ENERGY 103-1 Identification of material issue and accounting § Materiality analysis perimeter § Materiality Analysis Process 103-2 Management approach § Environmental performance 103-3 Evaluation of management approach § Environmental performance 302-1 Energy consumption within the organisation § Environmental performance Conversion factors into GJ: Light fuel oil 43.1 GJ/tons, Marine gas oil 43.1 GJ/tons, Heavy crude oil 40.6 GJ/tons EMISSIONS 103-1 Identification of material issue and accounting § Materiality analysis perimeter § Materiality Analysis Process 103-2 Management approach § Environmental performance 103-3 Evaluation of management approach § Environmental performance 305-1 Direct emissions of greenhouse gases (scope 1) § Environmental performance § Appendix - 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. 305-7 NOx, SOx and other significant emissions § Environmental performance § Appendix - GRI Indexes The calculation takes into account the percentage of sulphur declared in delivery documents provided by fuel suppliers. EXHAUST AND WASTE 103-1 Identification of material issue and accounting § Materiality analysis perimeter § Materiality Analysis Process 103-2 Management approach § Environmental performance 103-3 Evaluation of management approach § Environmental performance 306-2 Waste produced by type and disposal method § Environmental performance § Appendix - GRI Indexes PERSONNEL MANAGEMENT 103-1 Identification of material issue and accounting § Materiality analysis perimeter § Materiality Analysis Process 103-2 Management approach § Our people 103-3 Evaluation of management approach § Our people 401-1 Total number and rate of newly hired employees § Appendix - GRI Indexes and turnover rate, subdivided by age, sex and In reference to the figures concerning the geographic area recruitment and termination of maritime personnel, considering the different forms of national legislation that apply to the Group’s six shipping companies and accounting for the mixed nature of the information, starting from this report the Group has decided to not display this information as it is not representative. 401-2 Personnel benefits § Our people WORK POLICIES 103-1 Identification of material issue and accounting § Materiality analysis perimeter § Materiality Analysis Process 103-2 Management approach § Our people 103-3 Evaluation of management approach § Our people 401-3 Work return rate and retention rate after parental § Appendix - GRI Indexes leave, by sex. The parental leave retention rate for maritime personnel is not currently available.

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SPECIFIC STANDARD DISCLOSURE

KPI Description Direct response WORKPLACE HEALTH AND SAFETY 103-1 Identification of material issue and accounting § Materiality analysis perimeter § Materiality Analysis Process 103-2 Management approach § Workplace health and safety 103-3 Evaluation of management approach § Workplace health and safety 403-1 Percentage of workers represented on health and § Safety and Security safety committees 403-2 Type and rate of workplace injuries, occupational § On-board accident rate diseases, days of work lost, absentee rate and total § Appendix - GRI Indexes number of deaths, by geographic area and sex TRAINING AND EDUCATION 103-1 Identification of material issue and accounting § Materiality analysis perimeter § Materiality Analysis Process 103-2 Management approach § Training and skill development § Performance Assessment 103-3; Evaluation of management approach § Training and skill development § Performance Assessment 404-1 Average annual training hours per employee, § Training and skill development subdivided by worker category and sex 404-3 Percentage of employees who receive performance § Performance Assessment and career development evaluations EQUAL OPPORTUNITY 103-1 Identification of material issue and accounting § Materiality analysis perimeter § Materiality Analysis Process 103-2 Management approach § Our people 103-3 Evaluation of management approach § Our people 405-1 Structure of the organisation’s governing bodies and § Our people breakdown of employees § Appendix - GRI Indexes The Board of Directors is made up of four men belonging to the over 50 age group, in continuity with respect to the previous two years. COMPLIANCE 103-1 Identification of material issue and accounting § Materiality analysis perimeter § Materiality Analysis Process 103-2 Management approach § Compliance 103-3 Evaluation of management approach § Compliance 419-1 Monetary value of significant sanctions and total § Compliance number of non-monetary sanctions for non- compliance with laws and regulations

2018 Sustainability Report 93 Auditor’s Report

Tradition, responsibility, innovation.

Graphic Design Marco Di Lorenzo Sustainability Report 2018 Sustainability Report

sustainability REPORT

Sustainability Report 2018 2018

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