GEDI Gruppo Editoriale Società per azioni Consolidated Non-Financial Statement pursuant to Italian Legislative Decree no. 254/2016 Sustainability Report 2019 Consolidated Non-Financial Statement 2019 Consolidated Non-Financial Statement pursuant to Italian Legislative Decree no. 254/2016 Sustainability Report 2019 1 Consolidated Non-Financial Statement 2019 2 Consolidated Non-Financial Statement 2019 Contents LETTER TO STAKEHOLDERS ..................................................................................................................... 4 1. THE GEDI GROUP ............................................................................................................................ 6 1.1 - GEDI Group profile ................................................................................................................................ 6 1.2 - The business model and economic performance ............................................................................... 15 1.3 - Structure and governance ................................................................................................................... 18 2. THE GEDI GROUP AND MATERIAL TOPICS ......................................................................................... 24 2.1 - Stakeholders and stakeholder engagement ........................................................................................ 24 2.2 - Materiality analysis .............................................................................................................................. 26 3. THE GROUP'S ROLE AS AN INFORMATION PROVIDER AND RESPONSIBILITY TO THE COMMUNITY .. 28 3.1 - Our history, our values ........................................................................................................................ 29 3.2 - Content quality, independence and responsibility ............................................................................. 33 3.3 – Social role and participation in the community.................................................................................. 34 3.4 - Responsibility and digital communication........................................................................................... 40 3.5 – Responsibility towards the community .............................................................................................. 43 4 - HUMAN RESOURCES ....................................................................................................................... 46 4.1 - Focus on human resources .................................................................................................................. 46 4.2 - Health and safety in the workplace ..................................................................................................... 50 5 - ENVIRONMENTAL IMPACTS ............................................................................................................. 52 5.1 - Management of paper and other raw materials ................................................................................. 53 5.2 - GEDI's environmental impact .............................................................................................................. 55 METHODOLOGY ................................................................................................................................... 62 ANNEXES ............................................................................................................................................. 63 Annex 1 - Reconciliation table of topics relating to Italian Legislative Decree no. 254/16 and the main GRI Standards ..................................................................................................................................................... 64 Annex 2 - Scope of Material Aspects of the GEDI Group ............................................................................ 65 Annex 3 – Focus on Human Resources – Reporting Table .......................................................................... 67 Annex 4 - Environmental impacts - Reporting Table ................................................................................... 70 GRI Content Index................................................................................................................................. 72 INDEPENDENT AUDITOR’S REPORT ....................................................................................................... 78 3 Consolidated Non-Financial Statement 2019 LETTER TO STAKEHOLDERS GEDI Gruppo Editoriale is committed to offering information, culture, commentary and entertainment through its media in accordance with the principles of independence and freedom, with the awareness of the role that this activity plays in the formation of the citizen-reader’s ethical and moral values. The Group’s mission is also to create value for all stakeholders by devoting the required attention to financial stability within an adverse market environment, while offering quality products based on highly socially and environmentally sustainable management decisions. In order to disclose our activi- ties on the subject of sustainability, for the sixth year we are publishing a report prepared in accord- ance with the GRI international guidelines. Last year the Group adopted the updated version of the guidelines, the “Global Reporting Initiative Sustainability Reporting Standards”, in line with the “Core” approach. In this document, we have adopted a format recognised at European level through which we address the various issues based on these themes: the Group’s commitment to informing the citizen-reader and its responsibility to the general public; social role and participation in the community; focus on human resources; and environmental impacts. The Group will always retain a keen focus on these aspects of corporate life, aware of their importance in the creation of value both in economic and systemic terms. GEDI Gruppo Editoriale S.p.A. 4 Consolidated Non-Financial Statement 2019 5 Consolidated Non-Financial Statement 2019 1. THE GEDI GROUP 1.1 - GEDI Group profile GEDI Gruppo Editoriale (“GEDI” or the “Group”) is one of the leading Italian media companies and operates in the communication sector, from the daily and periodical press and publishing sectors to radio, internet and advertising sales. GEDI publishes La Repubblica, La Stampa, Il Secolo XIX, thirteen local newspapers, the weekly magazine L’Espresso and other magazines. The Group also includes three radio national broadcasters, Radio Deejay, Radio Capital, and m2o. Furthermore, GEDI operates in the internet sector and sells advertising through the agency A. Manzoni & C. S.p.A., including on behalf of third-party publishers. GEDI is committed to providing information, culture, commentary and entertainment through its media in ac- cordance with the principles of independence, freedom and respect, with an awareness of its responsibility to- wards the formation of the ethical and moral values of its readership. Daily Newspapers and Periodicals Digital Advertising Radio 6 Consolidated Non-Financial Statement 2019 Daily Newspapers - La Repubblica Founded in 1976, la Repubblica is a leading Italian newspaper with an average circulation of 198,800 copies per day (ADS 2019) and a daily readership of 1.9 million (Audipress 2019/II). La Repubblica has a national section present in all versions and nine local editions (Rome, Milan, Turin, Bologna, Genoa, Florence, Naples, Palermo and Bari). The various daily editions of the paper are accompanied by supplements including “Affari e Finanza”, which focuses on macro-economic and financial analysis and reports on leading national and international man- ufacturing businesses with reports and surveys; “Il venerdì”, the weekly magazine supplement that focuses on current and foreign affairs, reports, politicians and celebrities, and culture; “D - la Repubblica”, the weekly sup- plement aimed at women that focuses on current affairs, culture, fashion and events, trends and social change; “Robinson”, the cultural supplement published on Sundays which since May 2019 has gained greater identity and completeness to become an independent supplement separate to la Repubblica; and “Trova Roma e Tutto Milano,” the weekly guides that present the weekly highlights for each city, covering events, culture, entertain- ment, food, etc. In line with the previous reporting period, in 2019 the Sunday edition of la Repubblica continued to be accompanied by the magazine L’Espresso. Furthermore, new products associated with the newspaper have been launched, such as “Rep:”, a new mobile app designed to enable users to personalise editorial content in a highly innovative manner, with a selection of articles and news items chosen by the app based on the user’s browsing history/usage. Since February 2019, la Repubblica and the Group's other daily newspapers have been accompanied by “LIVE”, a monthly supplement dedicated to health, well-being and science, providing infor- mation based on social scientific data as well as practical information. 7 Consolidated Non-Financial Statement 2019 Daily Newspapers - News Network GEDI News Network is the group company that includes La Stampa, Il Secolo XIX and thirteen local newspapers, Il Tirreno, Messaggero Veneto, Il Piccolo, Gazzetta di Mantova, il Mattino di Padova, la Provincia Pavese, la Tribuna di Treviso, la Nuova di Venezia e Mestre, Gazzetta di Reggio, Gazzetta di Modena, la Nuova Ferrara, Corriere delle Alpi, and la Sentinella del Canavese,