FUTURE A LOOK TO THE CATTOLICA ASSICURAZIONI ASSICURAZIONI GROUP CATTOLICA A year of change. FUTURE A unifi ed approach that brings together A LOOK TO THE the various corporate spirits within the evolving dynamic that the Cattolica Assicurazioni Group is currently experiencing. An industrial and cultural shift towards innovation. 2017 CONSOLIDATED NON-FINANCIAL STATEMENT PURSUANT TO THE ARTICLES 3 AND 4 OF ITALIAN LEGISLATIVE DECREE N. 254/2016 SUSTAINABILITY REPORT CONSOLIDATED NON-FINANCIAL STATEMENT NON-FINANCIAL CONSOLIDATED Please note that the original Report is in Italian. 2017 In case of doubt the Italian version prevails. FUTURE A LOOK TO THE CATTOLICA ASSICURAZIONI ASSICURAZIONI GROUP CATTOLICA A year of change. FUTURE A unifi ed approach that brings together A LOOK TO THE the various corporate spirits within the evolving dynamic that the Cattolica Assicurazioni Group is currently experiencing. An industrial and cultural shift towards innovation. 2017 CONSOLIDATED NON-FINANCIAL STATEMENT PURSUANT TO THE ARTICLES 3 AND 4 OF ITALIAN LEGISLATIVE DECREE N. 254/2016 SUSTAINABILITY REPORT CONSOLIDATED NON-FINANCIAL STATEMENT NON-FINANCIAL CONSOLIDATED Please note that the original Report is in Italian. 2017 In case of doubt the Italian version prevails. REPORT ON CORPORATE GOVERNANCE REPORT AND THE OWNERSHIP ON STRUCTURES REMUNERATION ANNUAL REPORT AND FINANCIAL STATEMENTS CONSOLIDATED FINANCIAL STATEMENTS CONSOLIDATED 2017 NON-FINANCIAL STATEMENT PURSUANT TO THE ARTICLES 3 AND 4 OF ITALIAN LEGISLATIVE DECREE N. 254/2016 SUSTAINABILITY REPORT 2017 Sustainability Report → CONTENTS THE SUSTAINABLE JOURNEY 5 CHAPTER 2 - SUSTAINABILITY AS A VOCATION 33 The way to do business 7 Innovation and tradition: a short history of A long-term vision 8 Cattolica Assicurazioni Group 34 Inclusive and open since the beginning 10 Identity and Corporate Governance 37 Pursuing sustainability: a necessary choice 11 The Board of Directors 39 Sustainability: a multifaceted concept 12 The Board of Statutory Auditors 40 The Board’s Internal Committees 40 CHAPTER 1 - ETHICS AND EFFICIENCY The Internal Audit System 41 FOR A RESPONSIBLE BUSINESS 15 Risk Management as a Source of Opportunity 41 CSR: an integrated vision 16 Investments 42 Ethics and business at Cattolica 18 Climate Change 42 The business model 18 The Environmental Risks 43 Future sustainability: Health and Safety Risks 43 our 2018-2020 Business Plan 18 Corruption-Related Risks 43 The Group’s Structure 20 Risks linked to People 43 The Companies of the non-life segment 22 Risks for Human Rights 43 The Companies of the life segment 22 The Organisational Model According to The funds 22 Italian Legislative Decree 231/2001 44 Other Companies 22 Remuneration policies 45 The distribution choices 24 The Members 45 Ethical and responsible investment principles 25 Personal ethical principles 25 CHAPTER 3 - FOCUS ON THE CLIENT: THE INSURERS’ COMMITMENT 49 Ethics and environment in relation to investments 25 Insurance Products and Services 51 Cattolica and its Stakeholders 26 The distribution model 53 Cattolica’s Stakeholder Engagement 27 The bancassurance channel 54 Materiality analysis: the matrix 28 Service Quality 56 Directorate for Institutional Relations and Handling of Complaint 57 Communication 31 The future of business: innovation The history of CSR in brief 31 and digitalisation 57 Areas of excellence: Religious and Non-Profit bodies BU and the agri-food sector 58 Religious and Non-Profit bodies BU 58 The agri-food sector and the new products for agriculture 61 2 → CATTOLICA ASSICURAZIONI GROUP CHAPTER 4 - FOR THE COMMON GOOD: CHAPTER 7 - LEARN TO UNDERSTAND: CATTOLICA AND THE COMMUNITY 65 THE OBSERVATORIES 103 A company and the Territory 67 Religious and Non-Profit Bodies Fondazione Cattolica 67 BU Observatory 104 Progetto di vita - Cattolica per i giovani 72 Agri-food Observatory 106 CHAPTER 5 - THE HUMAN FACTOR: CHAPTER 8 - CREATING VALUE TO BE CATTOLICA AND PEOPLE 75 SUSTAINABLE: THE ECONOMIC RESULTS 109 The key element of transformation 76 The 2017 results 111 Becoming a “Great Place to Work” 76 Economic value generated and distributed 113 Give one’s best: Job Market 77 Total Tax Contribution Project 114 Talent Development 77 A “TEMPORARY” CONCLUSION 117 Smart Working 78 Welfare and attention to people 79 ANNEXES 121 Well-being and solidarity 79 Cattolica’s figures 80 CSR: Fundamental bibliography 122 Acknowledgements Internal communications 82 122 Professional Development and Training 82 Fondazione Cattolica’s Initiatives 123 Equal Opportunities Commission 84 Products for Members 128 Industrial relations 85 METHODOLOGICAL NOTE 132 Health and Safety 86 GRI STANDARD TABLE 134 CHAPTER 6 - THE SUSTAINABLE FUTURE: GRI Universal Standards 134 CATTOLICA AND THE ENVIRONMENT 89 GRI Topic-Specific Standards 135 A resource to be protected 90 INDEPENDENT AUDITORS REPORT 141 Paper consumption 91 Energy consumption 92 Direct and indirect emissions 94 Water consumption 96 Nature and cutting-edge technologies: the Ca’ Tron agricultural estate 97 3 Where there's a will, there's a way. Albert Einstein THE SUSTAINABLE JOURNEY The way to do business 7 A long-term vision 8 Inclusive and open since the beginning 10 Pursuing sustainability: a necessary choice 11 Sustainability: a multifaceted concept 12 2017 Sustainability Report → 6 → CATTOLICA ASSICURAZIONI GROUP THE SUSTAINABLE JOURNEY THE WAY TO DO BUSINESS A Non-Financial Statement is a heartfelt report to frame a company’s commitment on grounds that are deeply linked to individuals, the environment, and local communities. Clearly, the future of any company depends on its level of sustainability and how it gradually fits in with their business, as well as on its decision to actively transform good intentions into the foundation for its strategic objectives. This is a need that goes well beyond the Law provision set this year. Cattolica Assicurazioni Group starts off with a major advantage in this “sustainability race”. We can proudly say that the corporate social responsibility has always been a fundamental part of our business, long before this expression was used to identify a specific sector of social studies. Ours is a distinctive trait, which is continuously fuelled by the fundamental values of cooperation and the Church’s Social Doctrine, in its close link with the community and in the pursuit of the public “We can proudly say interest in all its possible facets. that the corporate social Our corporate conduct is not bound to the convenience that the responsibility has always reputational value of sustainability offers in terms of “cosmetics”, been a fundamental part marketing or communication, but rather it’s rooted in the very identity of our business.” of a Company which is seriously committed to creating principles and practices that can look to the future with confidence. Paolo Bedoni This Report, the fruit of the joint efforts of each department, aims Chairman to illustrate a year of activities carried out together with our customers, members, employees, agents and suppliers, while respecting the environment and paying particular attention to the needs of the general public. In short, this is a collection of a range of different “stories”, which have in common the same urge for a change capable of triggering a truly sustainable economic growth, starting with the respect to the interests of each stakeholder involved. At Cattolica, we think this is the only way to do business. INTRO → RESPONSIBLE BUSINESS → SUSTAINABILITY → OUR CUSTOMER → THE COMMUNITY → OUR PEOPLE → THE ENVIRONMENT → THE OBSERVATORIES → THE ECONOMIC VALUE → CONCLUSION → ANNEXES 7 2017 Sustainability Report → A LONG-TERM VISION Interview with Alberto Minali, Managing Director Why is sustainability so important in Cattolica’s strategy? From an objective point of view of economic rationality, I think that all insurance companies should be sensitive to the topic of sustainable development, given the very nature of their business. I think that Cattolica’s DNA has a natural inclination to consider its role not only in business terms, but also with respect for the social dimension. In a more subjective and personal view, I believe that a long-term economy should meet the principle of competition and income excellence, together with an ideal propensity to generate a more positive impact on society and on the environment. The common good has always been a fundamental value for Cattolica, long before the concept of sustainability became a part of corporate agendas and a core topic of the international debate. “We must be able - and want to be able - to have What are the main features of Cattolica’s vision in the a positive impact on all field of the Corporate Social Responsibility? stakeholders.” The basic concept is simple and clear: we must be able - and want to be able - to have a positive impact on all stakeholders. Protecting our customers from the various risks they are exposed to, being Alberto Minali Managing Director an attractive employer for our employees, being able to develop our people’s talents and offer them an inclusive and stimulating environment; being a point of reference for the communities where we are active, thanks to the dissemination of our values of solidarity and orientation towards the common good, developing Cattolica’s business model while taking into account the environmental impact it may have. These are just a few of the goals we have set for ourselves, and we are determined to apply them to our day-to-day actions, not only to achieve them,