SUSTAINABILITY REPORT 2009 Alcantara S.p.A. LETTER FROM THE CHAIRMAN 7 SECTION 3 Methodological foreword - How to read this report 9 SOCIAL 3.1 Human resources 49 SUSTAINABILITY 3.1.1. Composition of personnel and turnover 49 3.1.2. Diversity and respect for human rights 51 3.1.3. Incentive and remuneration systems 52 3.1.4. Training and development 54 SECTION 1 3.1.5. Industrial Relations 56 THE ALCANTARA S.p.A. 1.1 About us 13 3.1.6. Health and safety 57 IDENTITY 1.1.1. History 13 3.1.7. Internal communications and staff satisfaction 62 1.1.2. Alcantara S.p.A. today 13 3.2 Customers 64 1.1.3. Alcantara®: innovative material 14 3.2.1. Customer characteristics and analysis 64 1.1.4. Alcantara® sectors of application 15 3.2.2. Sustainability and product safety 66 1.1.5. Acknowledgments and awards 15 3.2.3. Customer Satisfaction and quality system 67 1.2 Governance and management systems for sustainability 16 3.2.4. New products and innovation/development 71 1.2.1. Corporate structure 16 3.2.5. Communications and events 73 1.2.2. Organisational structure 18 3.2.6. Conveying sustainability 74 1.2.3. Responsible management for sustainable development 20 3.3 Community 77 1.2.4. International certification 22 3.3.1. Contribution to developing the community 77 1.3 Sustainable development strategy 25 3.3.2. Perks and sponsorships in the various spheres of activity 78 1.3.1. Mission, values and principles 25 3.3.3. Activities in the area of research and creative innovation 78 1.3.2. Strategic approach and sustainability goals 26 3.3.4. Media relations 78 1.4 Stakeholders and listening, dialogue and involvement initiatives 28 3.3.5. Trade associations 79 SECTION 2 SECTIONh 4 ECONOMIC 2.1 General economic indicators 33 ENVIRONMENTAL 4.1 Alcantara S.p.A. and the Environment 84 SUSTAINABILITY 2.1.1. Management indexes and significant management data 33 SUSTAINABILITY 4.2 Environmental impact of Alcantara S.p.A 86 2.2 Added Value 34 4.3 Use of raw and recycled materials 88 2.2.1. Added Value determination statement 34 4.4 Energy requirements 90 2.2.2. Added Value distribution statement 35 4.5 Atmospheric emissions 91 2.3 Investments 38 4.6 Water requirements 101 2.3.1. Destination and comparison with plans 38 4.7 Waste production 102 2.3.2. Forecasts for 2010 39 4.8 Environmental investment 104 2.4 Suppliers and partners 40 4.9 Environmental education and other initiatives 105 2.4.1. Composition and type of supplier 40 2.4.2. Development of SA8000 responsible supply system 41 2.5 Public Institutions 44 G3 CONTENT CORRELATION TABLE 106 FINAL PUBLIC DECLARATION FROM TÜV ITALIA 116 Letter from the Chairman “Our material is extraordinary: Alcantara® is a combination of aesthetic (beauty and elegance), sensory (softness and comfort) and functional values (easy maintenance, resistance and breathability), is suitable for multiple applications, and retains its precious qualities over time. The production process of Alcantara® is now further enriched by a new and important characteristic connected with sustainability: Carbon Neutrality. The constantly changing and evolving macroeconomic scenario and the new perception of luxury, which can no longer be considered independently of ethics and respect for the environment, have pushed us to accelerate the corporate sustainability drive we adopted some time ago. A commitment that can be seen in our respect for the environment, the protection we afford our employees, and the special focus we place on health and safety in all our activities. We have set ourselves an important goal, which has become our absolute priority: that of becoming Carbon Neutral, reducing and entirely compensating for our CO2 emissions from the cradle (raw materials used) to the gate (the delivery of the material to our customers). This is a strategic choice and not a legal obligation. We are fully aware that we are among the first to undertake, with great determination, such a highly demanding commitment, one that in short time has enabled us to achieve an extremely ambitious goal. Our first goal was to use only energy deriving from renewable sources, reducing our emissions by 49% in just one year. Subsequently, all CO2 emissions generated by the material production process were compensated for with projects connected with alternative, hydroelectric and wind power energies in India, Honduras and New Zealand. The seriousness of our commitment is certified by TÜV Italia, the international body tasked with monitoring our progress. Completely setting to zero our carbon dioxide emissions will enable us to increase the added value of Alcantara® and to satisfy the growing requests of corporate customers and partners in terms of ethical and environmental respect”. Andrea Boragno, Chairman and CEO, Alcantara S.p.A. Methodological foreword How to read this report The Alcantara S.p.A. 2009 Sustainability Report is the The reporting process company’s first report of this kind, and seeks to provide The Sustainability Report was drafted following an a yearly account of the activities carried out and the internal process designed to involve the entire company results attained in the economic, environmental and with contributions from different corporate areas. social spheres in the preceding three years. The areas covered by the report, and its periodicity, This Sustainability Report is a tool that, together with are the same as those analysed in the Balance Sheet, other traditional information tools, enables us to provide and take account of all activities that have a significant widespread and transparent communications based impact in terms of sustainability, in light of the requisites on the principle of “accountability” (which means of the GRI-G3 standard. providing an account, to relevant parties, of the actions Information was acquired using specific forms to being taken to fulfil the commitments undertaken in procure data from both internal documents and external the three areas of sustainability: economic, social and sources: the most relevant impacts were considered environmental). and a basic survey system was built up. Data has been generated mainly from current management tools such Guidelines adopted as quality, environment, safety and social responsibility The contents of the Sustainability Report were drafted documents. The Sustainability report contains both the according to the Sustainability Reporting Guidelines Corporate policies for quality and social responsibility (G3) outlined in the Global Reporting Initiative (GRI) and for health, safety and the environment. and in respect of the reporting principles expressed in same, including that of prudence (article 15 of the Rio Principles). Also used were the Social Report drafting guidelines drawn up by the Social Report Study Group and AccountAbility 1000, a process standard developed by ISEA (Institute of Social and Ethical Accountability) that focuses special attention on dialogue with the stakeholders. More specifically, Alcantara S.p.A. has developed an accounting process and a number of indicators to reach level A in the application of the GRI standard. Please Planning and Coordination: Alcantara S.p.A. refer to the correspondence table at the end of the Technical and scientific support: REvalue srl - Carlo Luison Report. Contatti per ottenere informazioni The first edition of this Sustainability Report has been Alcantara S.p.A. audited by independent third party TÜV Italia. A copy Via Mecenate, 86 of the public declaration is present in this report on 20138 Milano Telefono +39 02 580301 page 116. Fax +39 02 5063886 www.alcantara.com [email protected] We would like to thank the entire internal Working Group and all personnel involved for their contributions to the development and realisation of the 2009 Sustainability Report. THE ALCANTARA S.p.A. IDENTITY 1 Alcantara S.p.A. is the company that manufactures and markets Alcantara®, the unique and innovative patented cover material developed using a unique and proprietary technology. Alcantara® is an extraordinary combination of sensory, aesthetic and functional qualities, and an ethical and social awareness that characterises contemporary lifestyles: the lifestyles of those that want to fully enjoy the products they use on a daily basis in complete respect for the environment. The little ® has enormous significance: it identifies the distinctive and unique technology, the advantages and lifestyles associated with the brand, and is also a guarantee that protects consumers against imitations. 1.1 About us 1.1.1 History Alcantara® is a versatile material used by the most prestigious international companies in many different sectors. Alcantara®’s incredible appeal is the result of a genuine technological breakthrough, an invention that first came to light in 1970. Alcantara® is the product of a unique and proprietary technology, as yet unparalleled, which ensures 12 that the product maintains its cutting-edge appeal and uniqueness over time. 13 Over the years Alcantara S.p.A. has consolidated significant technological know-how, enabling it to satisfy the 1 technical and stylistic requirements of customers and develop, on request, colours, product variants and new technologies in response to the most complex of briefs. Below is an outline of the key landmarks in the history of Alcantara S.p.A. • 1970 invention of Alcantara®: Japanese scientist Miyoshi Okamoto files a patent for the production of the material; • 1972 agreement with ENI Group for the commercial use of the patent (Joint Venture between ENI Group and Toray Industries Inc. Group, who provided the basic technology); • 1972 creation of ANTOR S.p.A. (acronym for ANic TORay); • 1973 Antor S.p.A. becomes IGANTO S.p.A. (acronym for Italia Giappone ANic TOray), sealing the partnership between the two countries and the respective companies, with 51% of the capital stock allocated to the ENI Group and 49% to Toray Group; • 1981 Iganto S.p.A.