SUSTAINABILITY REPORT ENVIRONMENT 2018 Consolidated Non-Financial Statement pursuant to Legislative Decree No. 254/2016 AND CLIMATE CHANGE CUSTOMERS AND PRODUCTS RESEARCH AND INNOVATION SUPPLIERS QUALITY PEOPLE COMMUNITY GOVERNANCE FINCANTIERI GROUP SUSTAINABILITY REPORT 2018 Consolidated Non-Financial Statement pursuant to Legislative Decree No. 254/2016 FINCANTIERI GROUP FINCANTIERI GROUP I NDICE LETTER FROM THE CHIEF PEOPLE 61 COMMUNITIES 133 EXECUTIVE OFFICER 4 People in numbers 63 Our initiatives 135 Recruitment policies, management Fincantieri Foundation 141 THE FINCANTIERI PLANET 6 and enhancement of human capital 65 Training and development 66 ENVIRONMENT AND CLIMATE THE FINCANTIERI GROUP 9 Diversity and equal opportunities 69 CHANGE 143 Our history: the bond with the sea 12 Health and safety 71 Environmental management system 144 Group overview 14 Company welfare 75 Environmental aspects 146 Vision, mission and values 16 Industrial relations 76 Environmental investments 152 Business model 17 Remuneration 77 Economic value for stakeholders 19 ANNEXES 155 Economic satellite businesses 20 RESEARCH AND INNOVATION 79 Methodological note 156 Memberships and participation in A clear vision for 2030 80 Description of material topics 160 associations 22 Structured processes for innovation 81 GRI content index 162 The role of Cetena 83 Independent auditors’ report on the SUSTAINABILITY FOR FINCANTIERI 25 Widespread network 83 consolidated non-financial statement 174 Sustainability governance 26 Main projects 88 Our stakeholders 28 Our Sustainability strategy 31 CUSTOMERS AND PRODUCTS 95 Materiality analysis 32 Our customers 96 Sustainability in risk mapping 33 Product portfolio 100 Charter of Sustainability Commitments 36 Eco-sustainable design 110 Sustainability Plan 38 Quality policy and assurance 112 ETHICS AND RESPONSIBLE BUSINESS Customer satisfaction and retention 115 MANAGEMENT 43 Corporate Governance SUPPLY CHAIN 117 and Remunerations Policy 44 Characteristics of the supply System of internal control and risk chain 119 management 51 Supply chain management 119 Our policies and management tools 54 Characteristics and management Cyber Security 58 of the supply chain of foreign Privacy protection 58 companies 127 2 3 FINCANTIERI GROUP FINCANTIERI GROUP satisfaction and loyalty, continuous dialogue this multimedia video course is for those primarily by liquid natural gas. Along with and support to local communities working in the Group’s Italian shipyards the path forged by our commitment to and reduction in environmental impact, and mainly to all the employees of external innovation, I want to highlight that, as part contributing to the fight against climate companies, a catchment area that numbers of the agreement between the University change. approximately 30,000 people, women of Trieste, Fincantieri and Intergraph, we and men of various nationalities and opened a new integrated ship design I can therefore report that, in 2018, our ethnicities, whose contribution cannot be laboratory, a multidisciplinary environment desire to be a responsible Group - one that disregarded. Fincantieri for the Future and which is the only one of its kind in Italy. promotes policies to create ever more value Towards Zero Accidents, two fundamental for all our stakeholders - has strengthened campaigns launched in the past and In conclusion, we are aware that the even further, with a commitment that is concerning, respectively, the employee Company’s prestige and image is expressed, primarily, in the sustainable development process and improvement of measured today by its ability to combine management of our business in the working conditions as well as a reduction in professionalism and quality with strict long term. Sustainability is not just an accidents, have continued and their results respect for the law and expectations opportunity but for Fincantieri it is a are ever more significant. In addition, the regarding the protection of local genuine mission to represent a model of Memorandum of Understanding signed communities. The values and principles we excellence. with the Ministry of Education, Universities believe in - based on an ethical approach and Research aimed to strengthen the to carrying out our business - are laid out LETTER FROM THE CHIEF EXECUTIVE OFFICER Let’s look into some of the most important relationship between the system of higher in our Code of Conduct and disseminated actions developed last year in more detail. education and technical training and the to all levels and all positions. Our signing Last year we published our first To give the appropriate importance to world of work in the shipbuilding industry. of the National Framework Tender Protocol Sustainability Report in which we described projects and results, our website has a with the Ministry of the Interior best our corporate social responsibility new “Sustainability” section, where the Our commitment to protecting the outlines this corporate vision. initiatives, an aspect that is garnering overriding themes are social responsibility environment will also continue to be of the increased significance in long-term value towards both the environment and to highest possible level. The strategic choices creation. In 2018, we made important human resources. The latter in particular, for and business processes adopted at all strides along this virtuous path, notably the a large manufacturing company like us, are levels, in terms of project and systems, are publication of our Sustainability Plan - a in every respect our most important assets. in line with the principles of short, medium major step in spreading and consolidating a Talented women and men from all over the and long-term environmental sustainability. sustainability culture. world represent the Group’s inestimable This begins with a preventive approach and potential for knowledge and innovative continues with responsible management of The Plan is the best expression of capabilities. This is demonstrated by the the production chain and raising awareness Fincantieri’s strategic vision. Its integration three Employment Protocols we signed this among all those involved. with the Business Plan will enable us year with the Friuli Venezia Giulia, Liguria to manage our response to the market and Campania regions, aimed at promoting In this light, the studies and research challenges of today and tomorrow, employment and aiding the socio-economic carried out by the Company on innovation combining business growth and financial development of these territories where we are of paramount importance. Some of the stability in line with the principles of work. A far-reaching safety project was agreements we have signed in the cruise social and environmental sustainability. launched in January, dedicated to two ship segment are proof of this. In particular, Our increased commitment concerns factors that have always been considered two of our projects, focused on reducing GIUSEPPE BONO the promotion of a responsible supply strategic for the Company: the well-being environmental impact, have caught the Fincantieri Chief Executive Officer chain, employee involvement, constant of all employees and the maintenance interest of shipowners such as Tui Cruises improvement of health and safety at work, and improvement of all the environments and Princess Cruises. In cooperation with support for technological innovation, with which they interact. “Together in these companies, we will develop new maintenance of high levels of customer safety” was started on these premises; classes of next generation ships powered 4 5 FINCANTIERI GROUP FINCANTIERI GROUP THE FINCANTIERI PLANET SHIPYARDS AND DOCKS MAIN SUBSIDIARIES EUROPE EUROPE ASIA ITALY ITALY CHINA + Trieste 7,000 FINCANTIERI S.p.A. Fincantieri (Shanghai) Trading Ships designed Monfalcone CETENA CSSC - Fincantieri and built + € 5.5 bln 230 Cruise Industry Development Marghera € 122 mln Delfi Revenues Years of history Sestri Ponente PRINCIPAL Research, Seastema INDIA development and Western Fincantieri India Genoa shipbuilder innovation Isotta Fraschini Motori Riva Trigoso - Muggiano Fincantieri Oil&Gas Vard Electrical Installation Ancona Seaf and Engineering (India) Castellammare di Stabia Marine Interiors UAE Palermo Fincantieri SI Etihad Ship Building NORWAY Fincantieri Infrastructure QATAR Aukra Issel Nord Fincantieri Brattvaag Seanergy A Marine Interiors Services Middle East Brevik Company SINGAPORE Langsten NORWAY Vard Holdings Søviknes VARD Group Vard Shipholdings Singapore ROMANIA Vard Design JAPAN Braila Vard Piping FMSNA YK Tulcea Vard Electro Vard Accomodation AMERICAS Seaonics ASIA USA SWEDEN VIETNAM Group Holdings Fincantieri Sweden Vung Tau Fincantieri Marine POLAND +19,000 Systems North America + Employees Seaonics Polska 650,000 Fincantieri Services USA AMERICAS Hours of training 55% other countries USA provided - 45% Italy Fincantieri USA Marinette € 33.8 bln Vard Marine US Sturgeon Bay Total backlog CANADA Green Bay Vard Marine +253,000tCO e 2 BRAZIL BRAZIL GHG emissions st Suape 20 1 98 Fincantieri do Brasil Shipyards - Total Player in Vessels in 4 Participações area of 5.4km2 diversification order book Continents and innovation +5,000 Suppliers in Italy OCEANIA alone AUSTRALIA Fincantieri Australia 6 7 FINCANTIERI GROUP FINCANTIERI GROUP T HE FINCANTIERI GROUP OUR HISTORY: THE BOND WITH THE SEA GROUP OVERVIEW VISION, MISSION AND VALUES BUSINESS MODEL ECONOMIC VALUE FOR STAKEHOLDERS ECONOMIC SATELLITE BUSINESSES MEMBERSHIPS AND PARTICIPATION IN ASSOCIATIONS