Sustainability Report 2019 Sustainability Report sustainability REPORT Sustainability Report 2019 2019 www.grimaldi.napoli.it www.grimaldi.napoli.it Tradition, responsibility, innovation. Graphic Design Marco Di Lorenzo 2019 Sustainability REPORT Summary Letter to stakeholders 4 7.4 Institutions and trade associations 48 7.5 Safety e Security 50 Methodological information 6 7.5.1 Safety 51 A year in a page: our 2019 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 entities, universities and research institutes 56 4.2 Our 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 future 67 Our sustainability strategy 20 8.2.1 The integrated management system 67 6.1 Our Stakeholders and Channels for 8.3 We invest in innovation 69 Dialogue 22 8.3.1 Grimaldi Green 5th Generation (GG5G) 72 6.2 Group Highlights 23 8.3.2 Research projects and innovation 72 6.3 Materiality analysis 27 8.4 Environmental performance 75 6.4 Economic Performance: Creating Shared Objectives 81 Value 29 We create value for our stakeholders 31 Commitment List 83 7.1 Our customers 31 Appendix 85 7.1.1 Passenger Transport 33 Materiality Analysis Process 85 7.1.2 Freight transport 33 Reconciliation table for material issues and GRI 7.2 Our People 35 standards 86 7.2.1 Personnel selection policies 36 The reporting perimeter 87 7.2.2 Training and skill development 42 7.2.3 Performance evaluation 43 GRI indexes 88 7.2.4 Workplace Health and Safety 44 GRI Content Index 95 7.3 Our suppliers and agents 45 Auditor’s Report 101 2019 Sustainability Report III 1 Letter to stakeholders ear Stakeholder, Grande Mirafiori from the Chinese shipyard Yangfan, D the second of seven sister vessels commissioned by in presenting the 2019 Sustainability Report, we the Group. This is one of the biggest PCTC vessels on are pleased to note that at the end of the financial year the market that can transport around 7,600 CEU (Car the Grimaldi Group was awarded the “Excellence in Equivalent Units) or, alternatively, 5,400 linear metres decarbonisation towards 2050” prize by the prestig- of rolling units and 2,737 CEU. From an environmental ious magazine Lloyd's List. point of view, this is a highly efficient ship, fitted with This award is the most tangible embodiment of our an electronically-controlled Man Energy Solutions commitment to sustainability. We can mention by way engine, as required by the new standards for the re- of example the Group’s initiatives regarding the use duction of nitrogen oxide (NOx) emissions, and with of alternative energy sources through the utilisation of an exhaust gas purification system for cutting sulphur mega batteries and solar panels and our experimen- oxide (SOx) emissions. tation with hydrogen-powered handling equipment, An additional 12 GG5G (Grimaldi Green 5th Gener- as well as a new series of cutting-edge hybrid Ro-Ro ation) Ro-Ro ships will join the fleet, starting from ships that feature some of the lowest CO2 emissions summer 2020, amounting to a total investment of over ever achieved. USD 800 million. These represent a new generation The Grimaldi Group believes that investing in envi- of Ro-Ro ships with a gross tonnage of 64,000 t, able ronmental sustainability is strategic for many reasons, to transport 7,800 linear metres of rolling units on 5 specifically: to develop company awareness/culture/ decks. They will be fitted with hybrid Rolls-Royce pro- will, to gain efficiency by reducing energy costs, to be pulsion systems able to integrate the functionality of prepared to comply with increasingly stringent inter- classic marine engines with large lithium batteries that national legislation and to reduce waste and corpo- will allow us to reduce emissions to zero when in port. rate risks (legal disputes, reputational aspects, etc.). Their garages will have a loading capacity twice in re- In the coming years, environmental awareness will spect of the largest vessels currently operated by the also play an increasingly bigger role in influencing Group and three times that of the previous generation CSR ratings and the perception that communities of Ro-Ro ships, while consuming the same amount of have of industry. fuel. Furthermore, they will be fitted with exhaust gas In terms of economic wealth produced, in 2019, the purifiers (scrubbers) and have 600 square metres of Group exceeded the €3 billion turnover threshold for solar panels for energy production. the second year in a row, with an increase of over During 2019, the Grimaldi Group completed the works €100 million compared to 2018 (+4%) and a signifi- to lengthen and renovate the flagships Cruise Roma cant increase in EBITDA (approximately +24%). Of this and Cruise Barcelona at the Fincantieri shipyard in amount, over 80% was distributed among suppliers, Palermo. The two vessels can now accommodate employees, lenders, the Public Administration and the 3,500 passengers in 499 cabins (amounting to a total social community. of 1,994 beds) and 600 comfortable reclining seats. The Grimaldi fleet is made up of over 130 ships, 118 From a technological perspective, cutting-edge solu- of which are directly owned, with an average age of tions have been implemented to reduce the environ- approximately 14 years (significantly lower than the av- mental impact and save energy. Specifically, four ex- erage for the industry and the useful life of the ships). haust gas purification systems have been installed to These are modern and technologically advanced cut sulphur emissions by up to 0.1% and to reduce par- ships that are deployed on regular lines, in a network ticulate matter by 80%. The ships also have a lithium connecting over 140 ports in 50 countries and 4 con- mega battery system to power them during port stop- tinents. overs. The programme to upgrade and expand the fleet con- The Group is continuing to install scrubber systems in tinued in 2019 with the delivery to Grimaldi Euromed, order to comply with the international IMO 2020 reg- in September, of the Pure Car & Truck Carrier (PCTC) ulation that establishes sulphur emission limits from 4 2019 Sustainability Report Cap.1 -Letter to Stakeholders 1 January 2020. In 2019, scrubber systems were in- consequences of COVID-19, and to the Clínic Hospital stalled on 20 ships of the fleet for a total of 52 ships Foundation in Barcelona to develop and purchase starting from 2018. The 2018 – 2020 investment plan equipment and for projects related to carrying out im- will be completed with 31 more installations, amounting munity tests on professionals and patients. to a total investment of approximately €150 million. For its part, the Grimaldi Foundation Onlus has in- In 2019, the Group joined the European “H2PORTS – vested over €700,000 to purchase the latest-gen- Implementing Fuel Cells and Hydrogen Technologies eration machinery for the Cotugno and Cardarelli in Ports” project, which will test the use of a tractor hospitals in Naples. Furthermore, the China-Italy Phi- for moving rolling units in the port of Valencia. Our lanthropy Forum, of which the non-profit Foundation is subsidiary Valencia Terminal Europa will thus become an active part, has organised a humanitarian air bridge one of the first European port structures to use hydro- aimed at accelerating the arrival of donations and gen-fuelled machinery to significantly reduce its envi- supplies of medical and sanitary equipment to fight ronmental impact. COVID-19 from Beijing. Our desire to contribute to protecting and enhancing The non-profit Foundation has also decided to support the marine environment is attested to by our decision other Mediterranean countries in the battle against to adhere to the "SAILS" (Sustainable Actions for Inno- the pandemic by allocating approximately €100,000 vative and Low-impact Shipping) charter. to purchase two General Electric 4D Ultrasound Ma- This is an initiative that was launched last July 2019 by chines for the Department of Gynaecology and Ob- the French Ministry of Ecological and Solidarity Tran- stetrics of the Mater Dei Hospital in Malta, while a sition, with the support of Armateurs de France (the further €100,000 has been donated to the General French Shipowners’ Association). University Hospital in Heraklion, on the island of Crete, The Grimaldi Group is the first Italian shipping com- where the COVID-19 unit is located. pany to have joined, thereby committing itself to imple- The Grimaldi Foundation Onlus, which was founded menting specific actions, such as reducing emissions in 2007, at the behest of Emanuele Grimaldi and the of atmospheric pollutants and greenhouse gases, Grimaldi family, is the leading private family foun- reducing the impact of underwater noise from ships, dation in central and southern Italy in terms of the optimising vessels’ energy performance, fighting inva- amounts disbursed, which are used exclusively for sive species and protecting cetaceans. social solidarity purposes. The global economic crisis caused by the COVID-19 In 2019, the Foundation disbursed €2.2 million on so- pandemic has left no industry untouched, however cial projects and finalised the purchase of the former the Grimaldi Group is showing extraordinary resil- Bianchi institute for over €10 million. This is one of the ience. oldest and most prestigious buildings in the centre of 2 The COVID-19 pandemic has created an economic Naples.