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2017
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2017 CORPORATE SOCIAL AND ENVIRONMENTAL RESPONSIBILITY REPORT
INDEX OF CONTENTS
CLAUSE PAGE
1. INTRODUCTION ............................................................................................................................. 1
1.1 Our stakeholders as our whole focus .............................................................................................. 1 1.2 Our mission, vision and values: built around environment and sustainability ................................ 1 1.3 Our Corporate Social and Environmental Responsibilities ............................................................. 3
2. OUR RESPONSIBILITY TO THE FINANCIAL COMMUNITY ........................................................ 4
2.1 A constant dialogue with analysts and investors............................................................................. 4 2.2 Stock performance and news flow comitment ................................................................................ 5
3. OUR RESPONSIBILITY TO THE EPS’ PEOPLE ........................................................................... 8
3.1 Our employees’ challenges ............................................................................................................. 8 3.2 Work-life balance strategy ............................................................................................................... 5 3.3 Constant trade unions and labour relations .................................................................................... 6 3.4 Health and Safety as a priority ........................................................................................................ 6 3.5 Continuous Training......................................................................................................................... 9 3.6 Equal opportunities for the EPS’ people ......................................................................................... 1 3.7 International Labor Organization compliance ................................................................................. 1
4. OUR RESPONSIBILITY TO ENVIRONMENT: OUR BUSINESS STRATEGY .............................. 3
4.1 Our environmental policy, our investments ..................................................................................... 3 4.2 Circular economy: pollution and waste management ..................................................................... 5 4.3 The significant posts of greenhouse gas emissions generated by the company’s activities, in
particular through the use of the goods and services it produces .................................................. 6 4.4 Climate change ................................................................................................................................ 7
5. OUR RESPONSIBILITY TO SOCIETY ......................................................................................... 27
5.1 Territorial, economic and social impact in terms of employment .................................................. 27 5.2 Innovation as local development driver, partnering with Universities ........................................... 27 5.3 Sponsorships and charities ........................................................................................................... 30 5.4 Enduring partnerships and stakeholders ...................................................................................... 30 5.5 A supply chain engaged in Social and Environmental Responsibility .......................................... 30 5.6 Fair trade practices ........................................................................................................................ 31 5.7 Other measures taken in favor of human rights ............................................................................... 32
6. METHODOLOGY NOTE ............................................................................................................... 33
6.1 Reporting boundaries and indicators selection criteria ................................................................. 33 6.2 Indicators criteria ........................................................................................................................... 33
7. CONCORDANCE TABLE .............................................................................................................. 35
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2017 CORPORATE SOCIAL AND ENVIRONMENTAL RESPONSIBILITY REPORT
1. INTRODUCTION
This report is part of a comprehensive
approach to taking into account the
Group’s corporate, environmental and
social responsibility and transparency
with respect to these issues.
Corporate social and environmental
responsibility is an integral part of EPS’
way of doing business. The goal of the
Group has always been to combine
competitiveness with sustainability. It is a
commitment aimed at pursuing growth,
innovation and results, always placing
great attention to the quality of life, and
environmentally compatible
development. The pursuit of these
objectives allows EPS to create
everlasting values not only to the benefit
of our people, partners, stakeholders but
also to the communities where we
operate.
With the appointment of the new board,
since February 2015, the Group has
started for the first time to formalize and
monitor such goals and way to do
business, with precise policies and
procedures of corporate social and
environmental responsibility (“CSR”), that
are now implemented by our new
operational and staff departments.
1.1 Our stakeholders as our whole focus
In particular, after the admissions of the
EPS’ shares on Euronext in April 2015,
the Group has focused immediately on
the identification and formalization of its
stakeholders outlined in the figure below.
Chart 1-Our Stakeholders
As an immediate consequence, the
Group entrusted its new operational and
staff departments, and in particular the
Finance, Communication and Legal
department to spearhead the
implementation, ongoing application and
continuous improvement by involving all
employees.
1.2 Our mission, vision and values: built
around environment and sustainability
EPS is a vertically integrated energy
storage company. The ongoing transition
in electrical power generation from fossil
fuels and nuclear power to renewable
energy sources has given rise to new
challenges that have seen storage
technology take the centre stage. The
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2017 CORPORATE SOCIAL AND ENVIRONMENTAL RESPONSIBILITY REPORT
energy sector has encountered two main
hurdles:
• in off-grid applications (emerging
markets): to serve the 2.4 billion
people (35% of the global population)
and energy intensive businesses
around the world that are not currently
reached by a reliable electric power
grid, so as to (i) replace diesel-fuelled
generators that currently provide
power and capacity to the final users
and (ii) make better use of renewable
energy sources.
• in on grid support (developed
countries): as intermittent and
unpredictable renewable energy
progressively displaces traditional
power plants, electricity grids
increasingly need storage systems
that provide both capacity and
flexibility. As a result, having the goal
to concretely enable renewables
sources to unlock the energy
transition, EPS’ mission, vision and
values are built around environment
and sustainability.
1.2.1. A clear Vision: An Energy Company
and the world’s reference for a clean
energy culture
Electro Power Systems S.A. (the "Group"
or "EPS") in 2017 has consolidated its
business model as a player operating in
the sustainable energy sector,
specializing in hybrid-storage solutions
and micro-grids that, in line with the
Group's mission, enable intermittent
renewable sources to be transformed into
a stable power source.
2016 has been the first year in which the
Group focused exclusively on hybrid,
storage and power conversion solutions
for both flexibility and capacity
requirements of any national grid or
micro-grid, developing and
commercializing:
- in developed countries, energy
storage systems to stabilize
electrical grids heavily penetrated
by renewable sources ("Grid
Support"); and
- in emerging economies,
microgrids to power off-grid areas
at a lower cost than fossil fuels
("Off-Grid Power Generation").
This dualism of hybrid solutions which
can provide at the same time flexibility
and capacity to any grid or micro-grid, is
aimed at solving the problem of
intermittence of renewables and
contribute to the implementation of the
energy transition, namely the
development of a balanced electricity
generation model based on new
renewable energy sources (wind and
photovoltaic power) and of electricity
distribution via so-called smart grids. In
2017 we consolidated our footprint in the
previous sectors by: (i) integrating wind
energy in a previously developed
microgrid, (ii) commissioning of a
hydrogen based microgrid plant in a
desert area at 4500 m above sea level
and, (iii) scaling up in the size of the
projects where the latest achievement
was the award of a 20MW-12 MWh grid
support BESS. Moreover, we developed
a new Power Conversion System,
suitable for tackling the utility scale BESS,
and laid down the basis for operating in
the Electric Vehicle market.
1.2.2. Our Mission statement: unlocking the
Energy Transition
The Group’s mission is to unlock the
energy transition, by mastering the
intermittency of renewable energy
sources, being pioneer of Hybrid Storage
Solutions, transforming intermittent
renewable sources into a stable power
source and enabling renewables to power
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2017 CORPORATE SOCIAL AND ENVIRONMENTAL RESPONSIBILITY REPORT
society: reliably, affordably and
sustainably.
1.2.3. Our Values in three cornerstones
Seeking innovation and sustainability of
the energy transition are the main values
of the Group.
It is expressed in three cornerstones:
• reliability for our partners;
• proactivity for our customers;
• technological excellence in any
solution deployed.
This means building value over time
through continuing innovation,
continuous improvement, transparency
and people development.
1.3 Our Corporate Social and
Environmental Responsibilities
The Group has taken steps to identify its
key CSR issues organized around three
lines of action:
• Our responsibilities to the financial
community;
• Our responsibilities to the EPS’
people;
• Our responsibility to environment;
• Our responsibility to society.
Our responses to these issues are
presented in this report.
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2017 CORPORATE SOCIAL AND ENVIRONMENTAL RESPONSIBILITY REPORT
2. OUR RESPONSIBILITY TO THE
FINANCIAL COMMUNITY
The Group attributes strategic importance
to financial and corporate communication
as a key instrument to build a relationship
of trust with the financial community, one
of its main stakeholders.
In this respect, the Group maintains an
ongoing dialogue, through the Investor
Relations department and the Group’s
top management, with analysts as well as
institutional and individual investors,
promoting fair, transparent, timely and
accurate communication.
As of the Initial Public Offering (“IPO”)
process and after that, financial
communication was aimed at creating
and further strengthening dialogue with
key stakeholders: public and institutional
investors (representing 38% of the share
capital), individual shareholders and
financial analysts.
2.1 A constant dialogue with analysts and
investors
During the IPO process the Group met
more than 50 institutional investors in
France, Italy, UK. In 2015 the Group
organized meetings with financial
analysts and leading local investors, also
participating to small and midcap
conferences in Paris and Geneva,
meeting more than 40 investors in Italy
and abroad. During 2016 and 2017 the
Group continued this trend by furthering
its dialogues in Italy, UK and France as a
result of a constant cooperation with the
most renown financial analysts of Société
Générale, Intermonte, Invest Securities
and Cantor Fitzgerald.
These activities, together with the
growing investors interest in the
specificity of the equity story of EPS and
in the storage and renewable energy
industry, have led the shareholder base to
become more international. In particular,
this ongoing dialogue with the financial
community has been the enabler of:
• the success of the IPO in April 2015,
in which the Group issued 1,974,032
new shares at a subscription price of
7.30€ per share, raising 14.4 million
euros;
• the success of the capital increase via
private placement in December 2015,
through which EPS issued additional
701,500 new shares at a subscription
price of 6.80€, i.e. with only 4.2%
discount versus the weighted
average of the stock closing prices
during the preceding three trading
days;
• the financing of € 0.5 million short-
term credit line to provide additional
working capital and € 2 million
medium-long term credit line mainly
dedicated to EPS’ development plan
from Unicredit;
• the financing of € 6.5 million received
by Intesa Sanpaolo structured in:
(a) €3.5 million 5-year long-term
credit line, by Mediocredito
Italiano, a subsidiary of Intesa
Sanpaolo, primarily dedicated to
continuing EPS’s research and
development activities on the
HyESS (Hybrid Energy Storage
System) project; and
(b) €3 million short-term credit line to
provide additional working capital
and to boost the pipeline’s
projects, primarily focused on
Africa and Asia, where EPS
hybrid solutions have already
been shown to dramatically
reduce energy costs thanks to the
Group’s innovative and
proprietary technology.
• Equity-linked €30mln loan with EIB:
On 11 April 2017, EPS approved the
equity-linked financing up to €30mln
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2017 CORPORATE SOCIAL AND ENVIRONMENTAL RESPONSIBILITY REPORT
with the European Investment Bank
(EIB), backed by the European Fund
for Strategic Investments, which will
support the company in its growth,
continuous research, development
and innovation activities, and further
product commercialisation.
The focus of the financial community in its
dealings with the Group is confirmed by
the coverage of its shares by French and
international investment banks. The
assessment and the related instant
reactions to our news and press releases
is periodically published (in terms of
“Target Price” recommendation) on the
company website in the Investors - EPS
Share - Analysts Coverage section.
Details on Stock Recommendations
Investment Bank Last Coverage Last recommendation Target Price per share
Société Générale November 2017 BUY € 18.50
Invest Securities November 2017 BUY € 14.30
Cantor Fitzgerald October 2017 HOLD € 15.00
Intermonte March 2017 BUY € 9.50
Chart 1- Analyst Coverage
2.2 Stock performance and news flow
commitment
The Group is committed to continuing its
efforts to maintain constant relations with
its investors and analysts by their direct
involvement in all its results and strategy
presentation.
The Group dedicated to fulfilling the
commitment to its financial community,
has decided and accomplished during
2017 to:
• publish and submit to the French
Market Authorities their quarterly
results even though French Law
dated 30 December 2014
(n°2014-1662) has ruled out this
obligation;
• organize conference calls with its
investors on all the quarterly
results and its strategy
presentation in order to better
outline its achievements, and
publish the transcript of the entire
call on its website;
• regularly upload all investors and
analyst presentations, news and
materials on its website in
Investors - Financial Information -
Presentation&Webcasts;
• constantly share with the financial
community (that has subscribed
to our newsletter) all major news
and press releases published on
our website and broadcasted;
• broadly share all our news-flow
always through:
a. Business Wire, broadcaster
authorized and regulated by the
AMF (Diffuseur Professionnel
d'Information Réglementée
autorisé par l’AMF), in order to
ensure a wide coverage in
Europe; and
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2017 CORPORATE SOCIAL AND ENVIRONMENTAL RESPONSIBILITY REPORT
b. Websim: a retail specialized
broadcaster, which ensures a
wide coverage of our news-flow
in particular in Italy.
As a consequence, our commitment
resulted in a good correlation between
news-flow and stock performance as
shown in the chart below.
Chart 2 - News-flow correlation to stock performance
Stock performance has been subject to a
lack of news-flow in the first months after
the IPO, but from September 2015,
particularly after the setup of a dedicated
Investor Relations department led by
Francesca Cocco, the activation of proper
broadcasters and a more focused effort
towards the financial community, the
stock trend has demonstrated a high
sensitivity to news-flow.
This resulted in the inclusion of the
Group’s stock (EPS:PA) on the CAC®
MID & Small and CAC® All-Tradable
indices: on 7 December 2015, Euronext
published the quarterly review results of
the CAC family, and officially announced
the inclusion of the EPS shares on these
two leading indices on and from market
close on 18 December 2015. This is proof
of the solid market capitalization and
significant float rotation of the shares,
confirming the liquidity of the stock and
enhancing visibility towards institutional
investors.
The chart below outlines the EPS stock
performance trend compared to the main
French and Italian indexes, CAC40
(FCHI) and FTSE MIB (FTSEMIB:MI) in
2017:
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2017 CORPORATE SOCIAL AND ENVIRONMENTAL RESPONSIBILITY REPORT
Chart 3 - Stock performance compared to CAC40 and FTSE MIB
Future challenges and approaches
The Group has met its purpose set on
2017 to forge a direct, personal and
stable relationship with the investors and
the financial community over time, which
is based on the vocation of permanent
service, transparency, accuracy and
reliability of the information supplied. It is
determined to further pursuit and meet
the numerous opportunities on the main
European financial markets, by
continuing its constant presence and
participation in the future small-mid
conferences and road shows dedicated to
corporate governance and carrying on
providing accurate, precise and punctual
financial information.
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2017 CORPORATE SOCIAL AND ENVIRONMENTAL RESPONSIBILITY REPORT
3. OUR RESPONSIBILITY TO THE EPS’
PEOPLE
3.1 Our employees’ challenges
The Group considers its employees the
main contributor to creating value and the
strategic factor in its own success.
Dedicated employees with diverse
background play a crucial role in creating
the innovative corporate culture EPS
needs to be successful and reach the
targets. For that reason, their
professional and personal fulfilment and
their motivation are the key drivers for the
Group’s development. We are conscious
the EPS Group’s performance depends
on having a highly skilled, motivated,
committed and talented workforce that
act in a way coherent with the Group’s
values and reflect the diversity of the
societies in which we operate. In this
context, the principal employment-related
challenges are:
• Developing a team spirit around the
Group’s values;
• Maintaining excellence and a top
level of know-how, expertise and
technical skills;
• Attracting and retaining the right
people;
• Ensuring equal opportunity
employment and zero discrimination;
• Promoting dialogue and respect
between employees and
management;
• Securing top working conditions no
matter what.
3.1.1. A balanced organization
As EPS becomes an ever-larger Group, it
is essential for our growth and
competitiveness that we further develop
diversity, improve our performance,
expanding and realigning the Group’s
organization. We want to make EPS a
more diverse, collaborative and enjoyable
place to work. As better detailed in the
following sections of this report, we
started by the end of 2015 a process of
transformation which continued in the
following years aimed to improve and
enhance every aspect of our workplace,
from the employment of new people, to
the design of our offices, passing through
the launch of flexible working initiatives,
and replacing internal emails with other
collaborative and social tools, down to the
organization of our work.
Management attaches great importance
to the full understanding of the corporate
culture and ensures that every employee
fully supports the Group’s strategy.
Through regular information meetings on
business developments and trends, EPS’
women and men are kept up-to-date on
expectations of management and
stakeholders. This commitment to the
EPS’ spirit also involves a commitment to
its ethical values by each employee, who
is asked to adhere to the Group’s Ethic
Code. That is focused in particular on
business confidentiality, sensitive
transactions, health & safety,
responsibility, risk management, respect
for individual freedoms.
Within the Group, the organization is
extremely flexible, thanks to the new
matrix organization, and is composed of
small teams who ensure horizontal
interaction and a continuous adaptation
to all changes or evolving external
conditions.
We employ a workforce of technical,
scientific and industry specialists whom
we rely on to ensure the technological
excellence and safe operation of the
Group’s systems around the world.
Although we are an Energy Technology
Company, EPS is made up of many other
facets. Strong and committed managers
play a decisive role in the successful
execution of the Group’s strategy. EPS’
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2017 CORPORATE SOCIAL AND ENVIRONMENTAL RESPONSIBILITY REPORT
leadership model clearly states that
leaders have the responsibility to achieve
business results and be people leaders at
the same time.
Our team of corporate professionals and
staff functions, although based in different
locations, ensure we operate effectively
as a listed company and in the most
transparent way. At the end of 2017, the
Group had 86 employees for an overall
organization including 6 dedicated
business partners totalling 92 human
resources (77 of which with a permanent
employment agreement). On February
8th, 2017, Electro Power Systems
Manufacturing S.r.l. ("EPS") has been
transferred to Elvi Energy S.r.l. ("Elvi
Energy"), by means of business lease
agreement, pursuant to art. 2561 and
2562 of the Italian Civil Code. In addition,
on 8th of February the AGM of Elvi
Energy, formally changed its name in
EPS Elvi Energy S.r.l.
The completion of the acts necessary for
the transfer and of all the related
obligations took place on February 8th,
2017, with retroactive effect as from
January 1st, 2017.
As a result of the transfer all the business
relationships in place and/or in progress,
including the agreements, have been
transferred to Elvi Energy, pursuant to
article 2558 of the Italian Civil Code and
therefore all the Group’s employees are
counted within the EPS Elvi Energy
perimeter. Over the last three years, the
Group has been engaged in a significant
corporate reorganization with no recourse
to social intervention.
Chart 4 – Headcount
3.1.2. Distribution of employees by gender
29
57
8692
Headcount
2014 2015 2016 2017
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2017 CORPORATE SOCIAL AND ENVIRONMENTAL RESPONSIBILITY REPORT
Chart 5 - Gender distribution of employees
We promote the careers of women and
getting the work-life balance right
between employment and family (please
see the maternity leave and flexibility
provisions under sections 3.1.2 and
3.2.1).
The percentage has registered a 2%
growth compared to last year where the
growth was more conservative due
exclusively to the acquisition of Elvi
Energy and MCM, where the quasi-
totality of the resources are electrical and
system engineers, a specialization which
is rarely addressed by women.
Future challenges and approaches
To further increase women presence, the
Group has promoted and is putting into
place a range of policies:
• The possibility for women of working
at home for 3 months to be utilized
one-off in full, or on a non-
consecutive basis, at full discretion of
the employee after the maternity
leave;
• Maternity check-up covered by the
Group’s insurance of employee
benefits;
• A right to request part time work;
• High quality and affordable medical
childcare which is covered by the
Group’s insurance of employee
benefits;
• Comprehensive job protection for
pregnant workers-:(1) guaranteeing a
safe and non-hostile environment; (2)
retain her job during pregnancy and
maternity leave; and (3) return to her
position or an equivalent one upon
return.
3.1.3. Distribution of employees by age
Flexibility and diversity are key elements
for creating an employment environment
which will enable EPS to remain an
attractive company over the time.
With regards to the age structure of the
workforce, the Group has in whole a
balance, which has allowed a constant
presence of senior staff that enriches the
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2017 CORPORATE SOCIAL AND ENVIRONMENTAL RESPONSIBILITY REPORT
Group’s expertise besides the junior staff.
Additionally, the Group’s contacts to
school and universities enable the
recruitment of high potential young
specialists, thus bringing a reinforcement
to the highly skills and new ideas
requested per each recruitment.
Chart 6 - Employees by age group
Our energy experts, scientist and
technologists, their skills and
competences are our primary assets and
this means we have a specific
responsibility towards our people. As we
want to develop our business and climb
the value chain, the Group considers
R&D critical to active innovation,
technological excellence and corporate
growth. Regarding the distribution of
employees by occupational category,
research&development and engineering
is the most represented area: as of 31
December 2017 43% of the EPS’ women
and man worked on innovative projects
and technologies (R&D, Innovation and
Engineering)
The breakdown of the workforce is as
follows:
Chart 7 - Headcount by function
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2017 CORPORATE SOCIAL AND ENVIRONMENTAL RESPONSIBILITY REPORT
The Group has an extremely qualified
staff, at year-end 2017 where almost 80%
of the headcount has a university degree,
of which 62% has an Engineering degree,
and 27% of our graduates has a Ph.D. or
a M.B.A equivalent.
.
Headcount by degree 31.12.2015 31.12.2016 31.12.2017
University Degree, of which: 40 60 73
- Engineers 20 39 45
- PHD or MBA 14 15 20
Technical Degree 17 26 19
TOTAL HEADCOUNT 57 86 92
Chart 8 - Headcount by degree
3.1.4. Distribution of employees by geographical area
We consider diversity as an enrichment,
because it supports the cultural change
within EPS and improves our routine work
every day. We aim to create an
environment of inclusion and acceptance
where our employees are treated with
respect and dignity and without
discrimination regardless their gender,
race, sexual orientation, political affiliation
or religion. The Group has increased its
global presence in 2017 by launching and
completing new commissions in
Americas, EMEA and Asia Pacific where
the Group’s employees have been
deployed during 2017.
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2017 CORPORATE SOCIAL AND ENVIRONMENTAL RESPONSIBILITY REPORT
Chart 10 – EPS Installed base
3.1.5. Our team is growing
The EPS Group offers opportunities to
pursue a career in a pioneering company
with a strong focus on quality, innovation
and sustainability.
Throughout the year, the Group has
continued to promote and reward internal
mobility with a communication campaign
directed to employees showing the
diversity of career paths supported within
the Group.
In 2017 the recruitment trend was very
positive: 16 new human resources
entered the Group.
As at 31/12/2017 No. Variation
Recruitment 16 + 62%
Dismissals 0 0%
Resignations 10 - 38%
Variation in Human Resources + 6 + 24%
Chart 10 – Variation in Human Resources
Future challenges and approaches
The Group’s recruitment campaign
launched since June 2015 has continued
in 2016 and 2017 and will be carried out
in 2018 with 26 new job positions
expected to be filled within 2018, which
will reinforce the Staff, Innovation,
Technology, Operations and Finance
departments.
3.1.6. Remuneration: we reward
performance
The compensation policy aims to attract,
retain and reward employees, based on
their collective and individual
performance. This policy is grounded on
four principles: (i) performance reward,
(ii) budget expectations, (iii) equal and fair
compensation to employees and (iv)
compensation market alignment. Total
compensation is broken down to:
• fixed compensation: base salary,
seniority benefits etc.;
• variable compensation: linked to
specific jobs or to individual
performance (bonus/variable
component or allowance), which
is measured based on the
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2017 CORPORATE SOCIAL AND ENVIRONMENTAL RESPONSIBILITY REPORT
appraisal process outlined in
section 3.1.7 of this CSR report);
• benefits: health and insurance
benefits are provided to all the
employees; and
• mandatory and optional profit-
sharing: based on criteria for
rewarding collective performance
and appraisal process.
Compensation shall be based and
benchmarked on the collective industry
scheme for metal-workers (Contratto
Collettivo Nazionale del lavoro, CCNL
Metalmeccanici). As per 2017, the total
compensation of the EPS employees was
31% higher than the minimum
compensation guaranteed per each
category by said collective scheme
agreed with the Trade Unions.
3.1.7. Appraisals and career development
The Group’s variable compensation
program, based on both collective
financial performance, individual
objectives and appraisal results is
gradually being brought into alignment
since 2015. The target percentages for
variable compensation depend on local
practices and are structured by level of
responsibility. The results of appraisals in
2017 have allowed a promotion on 6 of
the Group’s new employees which were
internships/stages transformed in
permanent contracts..
The appraisal platform studied and
designed specifically by EPS has allowed
an equal, independent and anonymous
evaluation of the employees by their
peers, direct reports and by the top
management. All employees are
evaluated and ranked based on their
performance and potential.
For evaluation purposes, it was
established a five pillars set of criteria in
order to assess performance:
(A) Analytics and insight
• understanding of the issue and recommendation of realistic solutions, based on sound business sense;
• accurate and rigorous analyses;
• priorities management;
• effective planning.
(B) Internal interaction and
communication
• capacity of building strong, trust-based collaborative relationships;
• documentation production to a client ready level (content and format);
• logical workflow construction;
• effective participation to meetings;
• audience engagement and strong presence expression.
(C) Team and self-management
• efficient time management;
• direct reports and/or colleagues’ motivation;
• use and provision of feedback;
• independent behaviour and help requests when needed leveraging supervisors time and skills effectively;
• calm reactions and focus in stressful situations.
(D) Entrepreneurial mind-set
• contribution to the development of EPS as a company and a Group;
• self-application to develop new business/R&D;
• identification of new business development and R&D;
• contribution to creating strong EPS relationships;
• knowledge creation, organisationand/or spreading.
(E) Commitment and motivation
• ownership of the project at hand;
• will to run the “extra mile” when needed;
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2017 CORPORATE SOCIAL AND ENVIRONMENTAL RESPONSIBILITY REPORT
• proactive engagement in new challenges;
• endeavour to think in solutions:
• care about advancing the project no matter what.
On the basis of these criteria of
evaluation, the employees are then
assessed according to their
performances, which rank from below
expectations, meets expectations, above
expectations to outstanding, combined
with their potential of improvement, which
is ranked in high, good and development
needs.
Chart 11 - Appraisal evaluation scheme
The results obtained by this appraisal
allocate the employees within different
areas of the evaluation grid, thus paving
the way for a reassessment, for an
improvement course or for an early
promotion.
All those employees who are ranked at
the extreme top right of the chart become
part of the Academy Talent Program
(“ATP”), which consists in a three-year
program dedicated to selected talents
within the EPS Group worldwide. The
ATP, subject to regular performance and
improvement appraisal, implies:
- increases of the total compensation
and promotion program;
- stock options plans;
- benefits, bonuses;
- courses, masters whose tuition fees
are paid, totally or partially, by EPS;
- secondment programs.
Future challenges and approaches
The Group will continue to build a value-
driven high-performance culture across
all our operations, supporting each and
every employee in evolving his/her skills
and career through our diverse systems
for talent development.
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2017 CORPORATE SOCIAL AND ENVIRONMENTAL RESPONSIBILITY REPORT
3.1.8. Our team, engaged shareholders
The Group offered stock options to all its
employees for the first time in 2015, by
allocating stock options plans and profit
sharing plans. As a result, at the end of
2017 3.12% of fully diluted shareholding
is held by Group’s employees and 7.67%
is held by its directors.
Category Fully Diluted
capital
Profit Sharing
Plan
Directors and Executive Directors 7,67% 71,08%
Employees 3,12% 28,92%
Chart 12 - Profit Sharing plan description
3.1.9. Evolution in compensation, our main
investment
The increase on human resources has
consequently brought at year end an
increase in the company cost base. In
2017 personnel costs and indirect
personnel costs amounted to €5.2 million
and total personnel costs with an impact
in P&L amount to €3.5 million.
Considering the positive impact in terms
of capitalization, that is due mainly to the
fact that 27% of our workforce have a
PhD and their main goal is to create and
enrich value on a daily basis, for that
reason we have capitalized 31% of the
total personnel costs in R&D activities.
Labour Costs 2015 2016 2017
Staff Costs 1,310,102 2,486,678 1.904.418
Social Security Charges 305,960 566,432 831.072
Benefits and service costs 67,230 230,750 272.343
Other Costs 36,858 412,300 495.500
Total staff Costs 1,720,150 3,696,249 3.503.332
Stock Options Costs (IFRS accounting method) 4,646,452 1,620,213 331.539
Chart 13 - Group compensation
3.2 Work-life balance strategy
3.2.1. Working time and maternity protection
The average number of working hours per
week is set by law. Full time employees
work between 35 and 40 hours per week.
EPS has also set up initiatives for a better
work-life balance by offering flexible work
hours at the site. For that matter the
Group has not implemented a control
system on working hours, badging is
done only for security reasons to monitor
the persons actually present in the
company during the day. In addition,
women with at least two children can
benefit from part-time conditions and
remote working flexibility programs. At the
date of this report 100% of the women
with at least two children have opted
for – and obtained – such flexibility
schemes.
3.2.2. Our results: low absenteeism
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2017 CORPORATE SOCIAL AND ENVIRONMENTAL RESPONSIBILITY REPORT
The Total Absenteeism rate, which is a
key indicator for measuring employee
engagement and motivation, in 2017 was
2%, thus registering a very positive trend
considering that it has decreased
compared to the absenteeism rate of
2016 It has to be noted that 1% of the
absenteeism was due to sickness or
maternity leave and that no occupational
incidents or diseases were registered in
2017.
3.3 Constant trade unions and labour
relations
The Group has historically recognized a
pivotal role to trade unions and social
representatives to discuss any key
decision regarding its personnel.
At EPS this dialogue plays an essential
role and goes beyond the formal legal
obligations that are required, providing
important input to identify any issues and
fine tune strategic decisions and
operations.
During 2016 dialogue with trade union
representatives of our employees was
fundamental to support the integration of
Elvi Energy and MCM within the Group
and to adopt a Group Business Travel
Policy containing a common business
travel policy within the Group that takes
into account the peculiarity of the regions
where the Group’s operational sites are
located, as well as workers’ health and
safety.
After the acquisition of Elvi Energy,
meetings between local labour
representatives in Valtellina (Italy) and the
Group’s representatives have ensured
tight coordination throughout the
integration processes. Since then EPS
has promoted a constant cooperation and
dialogue with its employees
representants of trade unions (RSU)
within the Group with update meetings
scheduled monthly. This cooperation has
also been fruitful in implementing the
Employee Welfare system (a set of
benefits and services offered by the
employers, which are not taxed, to
support the employees’ income and to
improve their private and working life)
within the Group, based on art.51 of
Legislative Degree 232/2016.
3.4 Health and Safety as a priority
Health and Safety are EPS’ number one
priority. The Group is committed to
providing a healthy work environment for
employees, contractors and all others at
our sites to help meet our company-wide
goal of achieving no harm to people. We
strive to impart to employees a strong
personal safety ethic that is rooted in
awareness, focused on prevention and
motivated by concern for human life,
because we want our workforce and the
employees of our partners to return home
every day as healthy as when they came
to work first thing in the morning. The
Group is fully compliant with the Italian
regulation D.Lgs. 81/08 promoting
activities, training, prevention and
awareness-raising on health and safety
issues and drawing up and collecting
good practice. For this reason and
considering the nature of our operations,
no collective agreements were signed for
health and safety matters in 2017.
Even though the results are easily
observed through indicator trends (chart
occupational incidents, injuries,
accidents), there are many underlying
factors: work organization, risk
assessment and mitigation, training, the
state of the equipment, management of
production processes, corporate culture
and the management’s leadership on the
subject.
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Type of incidents, injuries and accidents 2015 2016 2017
Occupational diseases - - -
Occupational injuries 1 - -
Occupational accidents - 1 -
Chart 14 - Incidents type
Our trend on work safety is a positive one;
nonetheless, EPS continues to work to
further improve its performance by
remaining highly focused on the health
and safety of its people and contractors.
The Group has applied an integrated
management system for the
management of health and safety,
environment and quality issues and has
appointed an HSEQ Manager who
supervises the compliance to the
certifications OHSAS 18001, ISO 14001,
ISO 9001 conferred to the Group. On 24
May 2017, the Company and EY’s
Sustainability Team finalised the new
“Integrated Management System” of the
Group, which now embodies the new
quality management system (QMS) and
the new environmental management
system (EMS) of the Group and has been
placed under the newly established
Health, Environment, Safety and Quality
Office of EPS. After less than two months
of implementing the news IMS. the Group
successfully overcame the certification
audit held on its new Integrated
Management System by RINA, the
leading global certification body, resulting
in compliance with ISO 9001:2015 (on 30
June 2017) and ISO 14001:2015
standards. In addition, EPS Elvi obtained
the OHSAS 18001:2007 certification on 6
July 2017.
The health and safety management
system guarantee an effective and
systematic administration of employees’
safety without disrupting the
organizational work structure by
implementing the following:
- adoption of a policy for the safety
management;
- hazard identification, risk assessment
and identifying the risk control
procedures, as per legislative
requirements;
- definition of specific programs and
objectives;
- definition of tasks and responsibility;
- education, training and staff
involvement;
- implementation of communication
and consulting procedures with the
employees and stakeholders;
- controlled management of archives;
- implementation of management
procedures on the activities related to
significant identified risks, including
processes, such as design and
maintenance;
- preparation of measures to detect,
prevent and monitor potential
accidents (injuries and failed
accidents) and emergencies;
- health and safety system monitoring
and performance measurements,
corrective actions undertaken to
maintain legal compliance;
- definition and implementation of
systematic and periodic inspections
(accidents, incidents, non-
conformities, corrective and
preventive actions) on management
system adequacy; and
- identification and assessment of risks
and dangers associated with the
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2017 CORPORATE SOCIAL AND ENVIRONMENTAL RESPONSIBILITY REPORT
activities carried out by third parties at
Group’s site.
The key performance indicators we use
for occupational safety are the Total
Recordable Incident Rate (“TRIR”) the
total number of recordable cases
multiplies to 200,000 divided by total
hours worked by all employees during the
year covered and the Lost Time Injury
Frequency Rate (“LTIFR”), the number of
injuries that occurred in the workplace
that resulted in an employee's inability to
work the next full work day, which
occurred in a given period relative to the
total number of hours worked in the
accounting period. The figure is typically
calculated per 1,000,000 hours worked In
the reporting year 2017 we succeeded in
maintaining the number of occupational
diseases and one of the occupational
accident injuries to zero.
Occupational safety KPI 2015 2016 2017
TRIR 3.5 2,01 0
LTIFR 17.7 10,04 0
Chart 15 - TRIR and LTIF metrics
Several measures were taken during the
2017 in order to create the best work
conditions and improve work place
comfort in all EPS premises: lighting
conditions, ergonomic office chairs with
silicon wheels to reduce noise, correct
height of office table, relaxing spaces.
2017 was devoted to the completion of
the mandatory training courses and
equipment control. Among the mandatory
courser was that of instituting and forming
an HSEQ referent for site that will be
responsible of the periodic inspection of
equipment and locations in order to
guarantee the safety conditions in all work
environments
The new offices and premises in Turin,
Bovisa and Delebio (Italy) were studied in
order to guarantee excellent work
conditions. These offices, designed by
international interior designers, are calm
and bright, and all employees are
equipped with laptop: there is no pre-
assigned desk, as any premises of the
Group is a “working area”, to encourage
team working and horizontal interactions
between the team members.
Furthermore, particular attention has also
drawn the subject of good posture in
workplace and the muscle-skeletal and
related hazards.
Itinerant employees are provided with
quality company cars and computer
equipment and smartphones specifically
adapted to their needs and to facilitate
their work conditions wherever should
they find themselves.
The Group encourages employees to
undertake periodical medical check-ups,
by providing employees with a health
insurance coverage, which guarantees a
reimbursement for specific medical and
surgery costs sustained by the
employees during the year. The Group
has launched a specific healthy living
program to inspire a happier and more
active lifestyle based on nutrition
information, balanced diet choices and
sports practice. In particular, the Group
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2017 CORPORATE SOCIAL AND ENVIRONMENTAL RESPONSIBILITY REPORT
encourages its employees to attend at
least one marathon run for a charity
program. In 2017 we participated to the
Milan Marathon which was held on 4th
April, an event that will be repeated in
2018. This is a net-zero initiative with the
goal to promote a wealthy lifestyle
through running, food, culture, art and
experience in the context in which people
live and work.
Future challenges and approaches
In all the countries where the Group
operates, we will evaluate the need of
specific collective agreements to further
regulate aspects of workers’ health and
safety.
While upholding occupational Health and
Safety as one of our top priorities, we will
continue to improve the working
environments through:
- safety measures for equipment;
- assessments to promote risk
mitigation;
- specific corporate communication
appointment;
- training programs that teach
employees skills and information
about risks management;
- organizational principles;
- healthy practices;
- employee climate surveys.
For 218 one of our main goals would be to raise awareness on the safety issues of all operators, by continuing the activities of specific training and courses started in 2017. Also for 2018 specific training sessions on travelling policies will be scheduled, which will focus on informing employees about any critical situation they could face during their business trips in different countries and subsequently a 24-hour service assistance will be deployed to support all the Group’s employees.
3.5 Continuous Training
The exchange of information and the
dissemination of a corporate culture
through initiatives to raise awareness and
specific training courses delivered to the
entire workforce with no exceptions are
fundamental to maintaining good safety
results.. During 2016 the Group has
invested in 818 training hours divided in:
Training 2017 Hours per employee
Employees(*) Hours
Training of employees on regulation 81/80 Training of Reg. 81/08 training on Electric Risks (CEI 11-27)PES-PAV 16 20 320
Training on ERP Software 39 1 39
Training for operators of self-propelled forklifts 16 5 80
Training of Reg. 81/08 on medium risks 8 22 176
Training of 81/08 on ADR-IMDG-IATA 4 4 16 Training on additional specific requirements for the person responsible for safety (Preposto) D.Lgs 9/04/08 n.81,artt.19 e37 8 25 200
Training of Reg. 81/08 on RLS 8 3 24
Total 855 (*) employees indicated as full time equivalent
Chart 16 - Training Hours in 2015
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Since July 2015 the Group launched the
EPS’ Academy, the in-house training and
management school supporting the
corporate strategy and business with
weekly meetings and courses. The EPS’
Academy aims to promote the
development of employees and their
ability to come up with effective problem
solutions. In 2017, EPS decided to extend
training for safety supervisors, on
firefighting and first aid to all the
employees deployed in construction
sites, in order to ensure effective
supervision and efficient management of
emergencies everywhere.
Future challenges and approaches
Special and practical courses of the EPS’
Academy are also under evaluation and
will be implemented in close collaboration
with our workforce, particularly for training
and information towards employees on
environmental protection. The Group will
also take into account measures to help
prevent and reduce psychological stress
on its employees.
3.6 Equal opportunities for the EPS’
people
The Group considers the skills and
ambitions of its people as a valuable
resource and is committed to creating a
working environment that guarantees
equal opportunities and values the results
of its employees. The Human Resources
department pays particular attention to
ensuring equal opportunity and non-
discrimination for each recruitment. Only
skills, experience, qualifications and the
personality of the candidates are taken
into account in the election process for
new employees. The diversity in terms of
profiles, culture, age and gender within
the Group constitutes a decisive strength
and one of the most important assets.
The Group also promotes gender equality
in hiring and employment, offering
equivalent career paths to men and
women as well as equivalent
compensation and promotions. The
company ensures equal access to
training and is committed in improving the
work-life balance of its people, increasing
employee awareness and communication
with colleagues at all levels. All EPS’
women and men, regardless of marital
status, qualify for maternity and paternity
leave as per local legislation.
Furthermore, as a sign of particular
respect and support towards maternity,
the Group guarantees number 3 months
of work-at-home to pregnant women to be
utilized one-off in full, or on a non-
consecutive basis, at full discretion of the
employee.
Future challenges and approaches
As globalization and other global trends
advance, we will expand the place of
women and foreign national employees in
the workforce, especially in executive
posts. We will endeavour in our effort to
create a work environment where each
employee can demonstrate his or her
talents to the greatest extent possible. As
EPS becomes an ever larger company, it
is essential for our growth and
competitiveness that we express the
value of the diversity of our workforce in
all its forms.
3.7 International Labour Organization
compliance
The Group promotes and implements
business ethics and respect for human
rights and the fundamental conventions
of the International Labour Organization
Declaration (“ILO”). The Group confirms
its commitment on the compliance with
the ILO Declaration on fundamental
Principles and Rights at Work. We
support and uphold the freedom of
association and the effective recognition
of the right to collective bargaining. All
Group staff are employed in countries
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2017 CORPORATE SOCIAL AND ENVIRONMENTAL RESPONSIBILITY REPORT
with favourable labour legislation. EPS
does not operate with Group’s employees
in countries subject to risks with respect
to noncompliance with international
labour conventions. The Group respects
the convention for the abolishment of
child labour since all employees are of
legal age at the time of their recruitment.
Future challenges and approaches
We aspire to build community-type
labour-management collaboration that
helps our global competitiveness, enrich
the lives of our employees, and contribute
to social development through
sustainable performance.
We believe in a horizontal relation
between labour and management, not the
vertical one that has often defined the
dynamics between trade unions and
management. We seek to establish a
labour management collaboration
underpinned by mutual respect and
equality.
The Group has therefore put in place a
unique model for collaboration that
facilitates interactive participation and
cooperation in three different dimensions,
interlinked with labour-management
collaboration, namely, (i) corporate
management, (ii) field operation and (iii)
collective bargaining. The direction of
cooperation between labour and
management is defined as follows:
- to enhance the value of the
company and the employees
through transparent and open
management;
- to maximize productivity through
strong teamwork and innovation
in the field operation dimension;
and
- to establish a business-oriented
labour-management
collaboration on the basis of
rational industrial practices and a
productive negotiation culture in
the collective bargaining
dimension.
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2017 CORPORATE SOCIAL AND ENVIRONMENTAL RESPONSIBILITY REPORT
4. OUR RESPONSIBILITY TO
ENVIRONMENT: OUR BUSINESS
STRATEGY
Energy and climate represent two of the
toughest challenges of this century. The
International Energy Agency (IEA) has
calculated that global energy demand will
increase 1.4 times between 2012 and
2040.
The renewables market is now
consolidating, also thanks to the
investments in two major areas of
expansion in the world, such as Latin
America and Far East (particularly China
and Japan), where solar and wind power
can be the quickest and most convenient
answer to the emerging demands of
energy.
The green revolution has started, and a
100 percent renewable energy system no
longer seems to be a utopia.
In 2015 the twenty-first United Nations
Conference on Climate Change (COP21)
in Paris sent a clear message:
greenhouse gas emissions must be
remarkably reduced, in order to limit
global warming to two degrees.
Unlike other companies, which have to
develop a climate strategy aimed at
mitigating their own impact on climate
change, we at EPS contribute with our
business not only to reduce our effects on
the environment to the minimum, but also
to unlock the energy transition on a global
scale. We aim to establish ourselves as
one of the world’s foremost eco-
companies.
In other terms, regardless the policies
implemented and outlined below, the
main aspect to be considered is that EPS
has the environment at the centre stage
of its business strategy.
This has led the Group to be:
- listed in the 100 Cleantech
businesses worldwide published
by the Cleantech Group
- awarded as Worldwide
Technology Pioneer by the World
Economic Forum.
- awarded with the first prize in the
Venture 4i in Grenoble and in the
Italian Venture Forum 2014
- selected as a “growing success
story” for the Tech Tour Growth
Forum in Geneva and Lausanne
- selected in June 2015 as one of
the top companies worldwide to
participate at the “Future of
Electricity Workshop 2015” of the
World Economic Forum in New
Delhi (India).
- receive in the context of the
European Project Horizon 2020,
the official “Seal of Excellence”,
the certificate delivered by
European Commission, signed by
Carlos Moedas, Commissioner of
Research, Science and
Innovation, certifying the
excellence in terms of real market
potential, technology, quality of
the team, efficiency of
implementation and business
plan.
4.1 Our environmental policy, our
investments
EPS’ goal is to definitely enable
renewables as a 24/7 clean, reliable,
affordable power source. We develop,
provide and integrate environmentally
conscious solutions which contribute to
the reduction of the environmental impact
of the electricity generation, trading,
distribution, storage and use.
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2017 CORPORATE SOCIAL AND ENVIRONMENTAL RESPONSIBILITY REPORT
Our strategic emphasis on accelerating
green resources growth as our primary
value proposition seeks to leverage
energy storage as the bridge to a lower-
carbon economy and demonstrates our
commitment to the climate change
challenge.
The Group’s environmental policy
comprises three main areas:
• Technologies: at a technological level
we contribute to the provision of
stable power supply and to mitigate
climate change through low-carbon
energy solutions;
• Manufacturing: as regards to our
processes we pursue high efficient
manufacturing to reduce the
environmental impact in production
activities by a more effective control
not only on our processes but also on
our assets and equipment part of the
processes;
• Basic activities: we rely on people’s
personal and professional sense of
responsibility for basic activities
which could help reduce our
consumption of resources, waste
production and polluting emissions on
a daily basis.
The Group makes every effort to minimize
its environmental impacts: our HSEQ
Manager ensures we always operate in
compliance with applicable legislation.
Our actions aim to protect health and
well-being of our people and
communities, while contributing to socio-
economic improvements and maintaining
the financial stability of our business. To
that extent, we consult with communities
throughout the life cycle of projects and
operations and develop plans to manage
any related impacts.
We consider environmental protection an
essential part of sustainable development
in all projects, throughout the lifecycle of
our systems and in all contexts in which
we operate.
Just as we target with our business
strategy a mitigation of climate change
and resource and energy efficiency for
clients through our products portfolio,
we’re also working to manage and reduce
the impact of our own operations, from
the R&D activities down to all stages of
the energy value chain.
Outstanding operational management:
• contributes to reducing costs as it
increases efficiency;
• allows for product and process
innovation;
• is a requirement for the company’s
license to operate; and
• reduces business risks.
Each year the Group has been compliant
with the requirements of the ISO 14001
certification. More specifically, it has
adopted an environmental policy that:
1. identifies the environmental aspects
of its activities, products and services
within the defined scope of the
environmental management system
that it can control and those that it can
influence, taking into account planned
or new developments - either new or
modified; and
2. determines those aspects that have
or can have significant impacts on the
environment
EPS also performed a dedicated context
analysis, identifying the expectations of
its stakeholders on environmental issues
and the environmental factors related to
the context in which EPS operates, and
evaluating which of these, considering
the business of the group, may lead to
potential risks or improvement
opportunities.
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2017 CORPORATE SOCIAL AND ENVIRONMENTAL RESPONSIBILITY REPORT
EPS has identified the following benefits
from the implementation of these
standards:
• controlling potential risk factors
affecting the impact of products on
the environment;
• reducing the risk of confusion,
deterioration, contamination and
error; and
• paying greater vigilance by personnel
in the performance of their activities.
The Group has also obtained without
reserves the ISO 9001 certification, for
the fulfilment of the specific requirements
for a quality management system where
an organization:
• needs to demonstrate its ability to
consistently provide products that
meets customer and applicable
statutory and regulatory
requirements, and
• aims to enhance customer
satisfaction through the effective
application of the system, including
processes for continuous
improvement and the assurance of
conformity to customer and
applicable statutory and regulatory
requirements.
• Wants to improve its ability to perform
as expected by partner, supplier,
customer and stakeholders
Finally, safety and environmental risk
mitigation are also the subject matter of
the CE, CSA and UL certification of all
EPS products.
Future challenges and approaches
The Group’s goal is zero environmental
accidents. To achieve it, efficient systems,
stable processes and a focused program
of work with risk assessments, routines
and advanced technology are mandatory.
One of the goals for 2018 would be to
evaluate the environmental aspects that
impact the design and production cycle of
our solutions (from the receipt of raw
materials to the batteries disposals in
order to implement even more
environmental friendly and greener
solutions. In the upcoming years, EPS’
environmental work will become even
more systematic.
4.2 Circular economy: pollution and waste
management
To compete successfully in the digital
age, organizations need to identify
appropriate responses that balance the
needs for economic development, job
creation, energy storage and supply with
greenhouse gas emission reductions and
better waste and pollution management.
As a technologically advanced and
pioneering company, we recognize that
we have a particular responsibility and
opportunities to contribute finding the
right solutions also at this level.
We have our own routines to ensure that
waste is handled correctly and safety and
has started negotiations to collaborate
with a specialized supplier which will
manage all the processes of hazardous
waste.
EPS is a paperless company, and we
encourage the use of:
• Portable Document Format (PDF): to
create, display and interact with
electronic documents and forms;
• Databases: to capture data for
prefilling and processing documents;
• Workflow platforms: to route
information, documents and direct
process flow;
• Digital signature solutions: to digitally
sign documents (used by end-users);
• Cloud applications: to receive
submitted data, store documents and
manage document rights.
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To minimize the use of paper we imposed
a maximum of copies (printed or
photocopied) per month. All the paper
used for printing and package is recycled
paper.
EPS has also limited the usage of
“plastic” within its sites, which imposes
use of washable domestic utensils and
cutlery for all the employees and staff,
while plastic utensils are used only for
guests.
Regardless the fact that our Hybrid
Storage Solutions are completely clean
and manufacturing and testing protocols
entail just oxygen and hydrogen
emissions (reason for which we have no
financial provisions for environmental
risks), EPS pays particular attention to
measures to prevent environmental risks
and pollution, in particular to the choice of
techniques and materials. To further
reduce the impacts of its activities and
test on its products the Group takes great
measures on preventing technological
and chemical hazards. The hydrogen
produced during the tests is stored and
recycled for further use during other tests,
while the pure oxygen is released back in
the atmosphere.
To achieve the objective of final waste
volume reduction, programs are being
implemented in all of the Group’s
premises to:
• minimize and control waste
generation at the source;
• promote sorting by providing bins for
separate waste collection or by
creating in-house waste sorting
centres;
• recycle materials and reuse waste by
selecting the most suitable methods;
and
• improve the processing and
packaging of non-reusable waste.
Future challenges and approaches
During 2017, in order to identify the
proper measures to be implemented for
the containment of the noise pollution, the
effective noise emissions of all
manufacturing plants was evaluated and
measured: the results are much lower
than the thresholds imposed by the
acoustic zoning of the municipalities of
our premises, making not necessary any
particular actions.
In 2018 EPS will deeper investigate the
end-life of its plants, focusing on the
dismantling possibilities, especially of
batteries. Despite the fact that our
manufacturing process does entail
neither particular noise nor air, water or
soil emission, in order to improve the
health and wellness management
process for our workforce, in 2018 the
Group will make further investments to
embed leading industry practices on
noise pollution reduction within our
premises.
4.3 The significant posts of greenhouse
gas emissions generated by the
company’s activities, in particular
through the use of the goods and
services it produces
The Group’s energy storage solutions, ,
allow a reduction in the quantities of
energy produced by renewable sources,
which would otherwise be curtailed, and
represents lost income for the grid,
estimated to reach more than US$ 30
billion at international level by 2023.
Our systems promote also a more direct
participation of consumers at the level of
use and in the management of their
consumption (management of demand).
Energy storage should permit cost
savings by allowing electricity producers
and suppliers to avoid purchasing
electricity at peak prices and buying (or
producing) it when it is cheaper,
regardless of the moment when it will be
used. The recourse to energy storage in
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2017 CORPORATE SOCIAL AND ENVIRONMENTAL RESPONSIBILITY REPORT
order to smooth load peaks, i.e.
smoothing hourly production, represents
a potential market estimated in a range of
US$ 10-25 billion per year by 2025.
Devices that permit the storage of excess
electricity, derived from renewable energy
sources during periods of strong
production and weak demand (e.g. at
night) and returned to the grid when
demand increases (around midday) this
avoids a slowdown in conventional plants
at night, and in this way permits a
reduction in production costs and CO2
emissions.
Most commonly and cost effectively, all
facilities and premises adopted energy-
efficient LED lighting solutions, which will
help reduce the consumption of electricity
and the energy-related CO2 emissions.
Through measures such as energy-
efficient manufacturing and power
equipment in all the premises of the
Group we optimised the lighting system
passing from a need of 12kW to only
4.6kW.
To achieve enduring operational
excellence, the Group has realized a
photovoltaic part of a micro-grid system
implemented in the premises of Delebio
to cover all the energy needs of testing
activities of the systems there
manufactured through the electricity
produced by solar panels on the roof.
Other activities included optimizing
heating and cooling processes within
offices and facilities, investments in more
efficient equipment, encouraging
sustainable mobility of the employees, by
train, car-sharing and less polluting
means of transport.
Our activities do not monitor specifically
raw material consumption as the
manufacturing process is mainly an
assembly of raw materials produced by
third parties such like chemical, industrial
and electronics companies. It is part of
our future goals to implement a more
detailed monitoring of the gas and energy
consumption in order to define possible
areas of reduction and improvement.
4.4 Climate change
An important target of the European
energy policy is the reduction of the
greenhouse gas emissions. Unfavourable
climate conditions, such as storms and
floods nowadays affect business
continuity, in a disruptive way. To meet the
high demand of solutions to ensure
energy efficiency and autonomy, we at
EPS have developed a full range of
products and services which solve
different issues in the field of business
continuity for telecommunication, energy
and railway companies.
The energy supply of the future must
become more climate-friendly, more
efficient and more intelligent. Innovative
technologies, products and systems at all
stages of the energy value chain are
essential for achieving this objective. The
stages range from extraction of raw
materials, through electricity generation,
trading, distribution and storage of
energy, to the use of energy.
Although climate change is not directly
affecting our business, the EPS’ top
priority is climate protection.
The Group’s aim is to tackle this issue by
further expanding renewable energies,
both in mature economies and in
emerging countries, and to contribute to
replacing older and polluting power
plants, which generate high levels of
emissions, with new and high-efficient
plants. We’re playing a key role in
structuring the energy transition so as to
solicit and enable a carbon-neutral
electricity supply, while at the same time
being in a position to make provision for
future energy needs with a high quality of
backup power supply over the long term.
Climate protection also plays an
important role in the debate going on in
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2017 CORPORATE SOCIAL AND ENVIRONMENTAL RESPONSIBILITY REPORT
the public domain. Our stakeholders,
mainly customers, institutions and
politicians expect us to support the
accomplishment of ambitious targets and
to deliver a consistent approach directed
towards the reduction of greenhouse gas
emissions.
Our operations require energy which
gives rise to the carbon dioxide
emissions, directly or indirectly. To reduce
greenhouse gas emissions, the Group
decided to introduce a hybrid corporate
fleet and will also evaluate the
introduction of electrical vehicles for the
urban business trips.
Future challenges and approaches
To help reducing the greenhouse gas
emissions linked to the business trips of
our workforce within the sites of the
Group, we will introduce a multisite video-
conference system. The Group will also
introduce a specific “green procurement”
in other words the sourcing of products
and services which are more
environment-friendly than others, such as
recycled/reused materials for the
premises’ stationery and similar.
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2017 CORPORATE SOCIAL AND ENVIRONMENTAL RESPONSIBILITY REPORT
5. OUR RESPONSIBILITY TO SOCIETY
5.1 Territorial, economic and social impact
in terms of employment
In pursuing its corporate goals, the Group
is committed to contributing to the
development of territories in which it
operates by generating employment and
income to local communities. This
commitment is realized through
collaboration in various projects with
governments and local stakeholders,
local content promotion, projects for local
communities and with the preventive and
inclusive stakeholders.
As our business continues to grow, we
are creating more jobs and welcoming
more individuals to the EPS family. To
cultivate the economic opportunities that
build mutually beneficial relationships in
the communities where we operate, our
manufacturing site and premises
prioritize hiring colleagues from the local
areas, as detailed in Section 3.
5.2 Innovation as local development
driver, partnering with Universities
In pursuing its corporate goals, EPS is
committed to contributing to the
development of territories in which we
operate. This commitment is realized
through collaboration in various projects
with governments and local stakeholders,
local content promotion, projects for local
communities and with the preventive and
inclusive stakeholders.
The Group has built through the years a
consolidated presence in many Italian
areas and has consistently built long-term
relationships based on projects with
national and regional authorities aimed
also at sustainable development.
In its pursuit for excellence, EPS has had
a strong and everlasting relationship with
the Polytechnic of Turin right from the
start. The Group implemented an
agreement with the Polytechnic of Turin,
to support the design of the HyESS
platform: Finite Element Method (FEM)
and Computational Fluid Dynamic (CFD)
analyses have been performed on main
components together with Reliability,
Availability, Maintainability, Safety
(RAMS) analyses of the overall
architecture.
In 2017 the Group has built with
Polytechnic of Turin a successful
proposal, named “REMOTE -Remote
area Energy supply with Multiple Options
for integrated hydrogen-based
Technologies” in the frame of the Horizon
2020 programme (H2020-JTI-FCH-2017-
1). The project was awarded in December
2017 and focuses the demonstration of
Hybrid Energy Storage Systems supplied
by renewables in four isolated micro-grid
or off-grid remote areas to be
implemented starting from 1st January
2018. The Group will develop three of the
four microgrids. The Group together with
Polytechnic of Turin has built up an
international consortium characterized by
partners that are leading players in
sustainable energy, such as Enel Green
Power in Rome (Italy), Ballard Europe in
Hobro (Denmark), Hydrogenics Europe in
Westerlo (Belgium), Powidian in
Chambray-lès-Tours (France), Horizon in
Serres (Greece), IRIS in Torino (Italy),
TronderEnergy in Trondheim (Norway),
SINTEF in Trondheim (Norway), Centre
for Research and Technology Hellas in
Thermi Thessaloniki (Greece).
The Group had a collaboration with the
Istituto Superiore Mario Boella (ISMB) in
Torino – a research and innovation center
operating in the ICT domain - for the web-
based remote-control development of the
Hybrid Energy Storage System
(“HyESS”).
In order to reinforce local partnerships
already in place with the companies
Mavel LTD and Eltek Plast S.p.A. and join
the network and active research centers
in the Valle d’Aosta Region, EPS
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2017 CORPORATE SOCIAL AND ENVIRONMENTAL RESPONSIBILITY REPORT
requested in 2016 to the local
administration an establishment, with the
aim to maintain local premises in the
region.
In view of the Healthcode project, started
in September 2015 whose aim is to
implement an advanced monitoring and
diagnostic tool based on Electrochemical
Impedance Spectroscopy (EIS) for μ-
CHP and backup PEM fuel cell systems,
the Group is part of a consortium
characterized by partners with a wide
experience in the industry and research
fields, such as Ballard Europe in Hobro
(Denmark), EIFER Europaisches Institut
fur Energieforschung EDF-KIT Ewiv in
Karlsrhue (Germany), Università degli
Studi di Salerno (Italy), University of
Aalborg (Denmark), Torino E-District
Consorzio (Italy), FCLAB of Université de
Franche-Comté in Belfort (France),
Vitamib in Grenoble (France).
Over time we extended the dialogue to
another leading Italian University: the
Polytechnic of Milan, where Giuseppe
Artizzu, Director of Global and Energy
Strategy at EPS is visiting professor and
board member of the Master Course on
RIDEF (Renewables, Decentralization,
Efficiency and Sustainability). At the end
of 2015 and beginning 2016 we
deepened this relationship even more
with the strategic acquisition of a
participation in MCM, a center of
excellence, participated by the
Polytechnic of Milan. MCM is specialized
in the development, design and supply of
digital control and static energy
conversion systems which can be used
as critical components in various
applications, always with the aim of
achieving energy savings. The main
component of MCM technology is the
Universal Digital Control System that
provides an advanced interface to the
public grid for Distributed Generation
systems, suitable for all sources, such as
wind, photovoltaic, gas micro
cogeneration and mini hydroelectricity
plants. This relationship is further
strengthened by Daniele Rosati, who is
the Group Vice President Engineering
and is visiting professor at Polytechnic of
Milan where he teaches at the main
course of Power Plants Electricity for
engineers at the last year. He is also
visiting professor at the University of
Pavia at the course of Energy
Conversion, Renewables, Microgrid and
Energy Storage, thus permitting the
building of a constant dialogue with other
universities.
The evolving energy market scenario is
imposing a strong continuous innovation
path. Studying and developing new
innovative microgrid and distributed
generation control technologies will be
crucial to address the different market
opportunities that will arise from time to
time, and pivotal for unlocking the energy
transition. With this goal, EPS identified
the major technological challenges for
incoming years:
• Optimisation Algorithms and Control
Predictive functions for Next
Generation Microgrids;
• Distributed Smart Storage for behind-
the-meter grid services;
• Distributed Smart Generation to
transform consumers in prosumers
with energy at a lower cost;
• Virtual Power Plants to achieve a
radical transformation;
• Vehicle-to-the-Grid to transform a car
into a revenue generating asset;
• Fast Charging to speed up EVs
penetration.
EPS decided to gather all the research
and development activities linked to these
challenges in the “PROPHET”
(PRedictive OPmitization for Heading to
the Energy Transition) project.
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Born from the long-lasting cooperation
between EPS and the Politecnico di
Milano, its primary objective is the
improvement of Power Optimization On
Line (POOL) control logics and
algorithms for islanded and grid
connected multi-DERs microgrids. Such
an optimization platform should be
suitable for the rest of the technological
challenges as well, in order to allow EPS
deploying a single and flexible
technological solution.
Within PROPHET framework EPS will
design and build an experimental
innovative rig at Politecnico di Milano’s
premises, which includes a multi-DERs
microgrid supplying heat and electricity
and an EV charging station. This facility is
expected to be used for the validation of
the optimization platform and for furtherly
develop EPS solutions and know-how.
Project PROPHET will have a primarily
scientific focus therefore it is expected to
be articulated as follows.
Research activities, intended as:
• Theoretical analyses and
comparative studies with respect to
alternative optimization methods;
• Analytical formulation of the solution,
in order to be flexible with respect to
the different possible applications;
• Unit and system testing considering
specifically designed models, derived
from literature or depicting the
microgrid setup. Such a project stage
should not involve real HW since it is
intended only for validating the base
algorithm;
• The peculiar activities of each work
package;
Technology bridging:
• Feasibility study about the porting of
the algorithm on the EPS control
platform;
• Basic porting and testing on the rig
and/or with Hardware In the Loop
(HIL) simulator or OPC interfaced
power system tool. This project stage
should be articulated with unit and
system testings and it is expected to
be carried out by executive PhDs.
The combined usage of the rig and
HIL, or OPC interfaced power system
tool, could give opportunity to validate
the developed controller on a larger
scale, so in presence of more signals
or more complex scenarios than the
rig, but showing at the same time a
practical outcome of the results;
• Recommendations for
industrialization;
Dissemination, patenting and external
training activities:
• Any technically relevant algorithm
that could offer market/technological
advantages to EPS and that it could
be replicated by the competitors
should be evaluated for a potential
patenting process;
• The PhD students and PoliMi staff are
expected to disseminate their
outcome through publications,
possibly at international level on
highly ranked journals, in order to give
visibility to their work and to
PROPHET project;
• Further activities related to the
dissemination of project outcome
(e.g. poster sessions or tours with
project partners) or aiming to train the
EPS staff or external lab guests
should be intended as part of the
scope of work.
The experience acquired from the rig
operation and the control software
developed throughout the project will
enrich EPS know-how. On the other hand,
Politecnico di Milano will have a chance
to further expand the research
capabilities in the field of system
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2017 CORPORATE SOCIAL AND ENVIRONMENTAL RESPONSIBILITY REPORT
optimization and microgrid control, and
the possibility to count on a fundamental
experimental feedback on the
optimization models, deriving from the
actual operation of the experimental rig.
5.3 Sponsorships and charities
EPS contributes to associations
intervening in the areas of solidarity and
childhood, by providing financial
assistance to support their projects.
The Group since 2015 has decided to
replace the amount usually planned for
the Christmas corporate gifts with a
donation to the Paideia Foundation on
2015 and on 2016 with donations to the
associations Hakuna Matata (founded in
2010 and is responsible for providing
appropriate support to the education and
growth of the central Tanzanian children)
and Theodora Onlus (founded in 1995
and whose mission is to bring a smile to
hospitalized children with the visit of
Dottor Sogni). In 2017 the Group has
implemented, together with Theodora
Onlus, the EPS Lean Running Program
which targets for all the employees a one
year training for the foot race, developed
gradually over different distances, in
order to support the promotion of a
healthy lifestyle and a balanced diet. The
EPS Lean Running is a growth project
that aims: to promote the race as a team
building moment, understand the
importance and the added value of a
flexible mindset, lean and able to adapt
quickly to any change and promote a
better quality of life through physical
activity. The project has been led by Silvio
Omodeo and has been structured in order
to further support the Theodora Onlus
activities.
5.4 Enduring partnership and
stakeholders
The Group business relies on effective
and sustainable supply chains to meet the
evolving needs of our customers. As we
do with all of our stakeholders, we strive
to create relationships with suppliers that
are built on a foundation of integrity,
respect and mutual benefit.
We seek the most responsible and cost-
effective ways to secure goods and
services from our suppliers. In particular
we emphasize relationships with entities
near our operations to the extent they
meet our requirements. By supporting
local suppliers, EPS benefits from
proximity and security of supply,
contributes to local economies and helps
attract additional investment to the
community.
5.5 A supply chain engaged in Social and
Environmental Responsibility
EPS’ business relies on effective and
sustainable supply chains and
partnerships’ agreements to meet the
evolving needs of our customers on the
technical, energy and economic front. As
we do with all our stakeholders, we strive
to create relations with suppliers,
providers and business partners that are
built on a foundation of integrity, respect
and mutual benefit. The Group is
committed to build sound partnerships
with suppliers through fair-trading in
compliance with procurement-related
laws and regulations.
Our extremely innovative activity often
requires exclusive components, products
and supply which in most cases are
customized for our special needs or
provided by a unique partner. However,
regardless of challenges, we’ve been
selecting our technology providers paying
a particular attention on their reputation in
terms of social responsibility and
operational excellence. The procurement
department, in close collaboration with
Engineering, Innovation, Technology and
R&D has selected suppliers based on
various Total Cost of Ownership (TCO)
targets, combining economic
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2017 CORPORATE SOCIAL AND ENVIRONMENTAL RESPONSIBILITY REPORT
performance with environmental
responsibility: a) at the main components
level the technical characteristics are
defined by the engineering department,
b) all the phases of the supplier
management are conducted by the
Project Manager (“PM”) in charge of that
specific project, c) the whole project team
is involved during the tests phases at the
suppliers facilities, and d) all the
subcontractor are required to share their
quality control plan of their activities and
the supplier management is done directly
by the PM and Site Manager (“SM”). We
work continually to improve the supply
chain with a strong focus on its sourcing,
sustainability, traceability and
transparency. To reduce risks linked to
the procurement, the Group has been
working both at an engineering and
market investigation levels on a variety
reduction program, to ensure the
sustainability of our purchasing. A
5.6 Fair trade practices
As the globalization of markets continues
apace, national borders liquefy and lose
their relevance for trade in energy
sources. Companies like EPS are
therefore being challenged by their
stakeholders to exert influence on their
suppliers through their procurement
policy on both an international and local
level.
Purchases principally consist of raw
materials and semi-finished products,
such as the components of fuel cells,
which are then assembled and integrated
into the Group’s systems, of Self’s
electrolytic cell and of the electronic
components.
The Group is committed to build sound
partnerships with suppliers through fair-
trading in compliance with procurement-
related laws and regulations.
The Group is committed to the highest
standards of ethics, honesty, openness,
and accountability. In the course of our
business activities, we fully endorse all
applicable anti-bribery, fraud, corruption,
and money-laundering legislation, taking
a zero-tolerance approach to any form of
corruption or fraud from either our own
staff or those acting on our behalf.
The Company and its Compliance Office
(Organismo di Vigilanza) provide ongoing
bribery awareness training to employees
and have developed proportionate
procedures across all its areas of
operations to ensure that bribery and
corruption risks are minimized and
eliminated where possible.
This commitment is reflected in the key
principles contained within the Ethical
Code and Anti-Fraud and Corruption
Code of Conduct approved by the Group,
which we expect all our staff and those
acting on our behalf to understand and
comply with. We train our employees with
session and communications on how to
apply the Code’s principals. Before
working with suppliers, we conduct
assessment in order to determine the
degree of bribery and corruption risk
posed. This helps the EPS Group put
mitigation plans in place when needed.
We also check suppliers once the
agreements are in place.
Partners agree to and undertake to fulfil
any provision of the Ethic Code and Anti-
Fraud and Corruption Code of Conduct
approved by the Group and therefore
agree, inter alia, to behave in the full
respect of business, corporate and
professional ethics, preventing the EPS
from any relationship, agreement or role
that may negatively affect our reputation,
values and commitments. Our Code of
Conduct explicitly prohibits engaging in
bribery and corruption in any form.
Our Ethic Code applies to all employees,
officers and directors. We expect and
encourage our contractors and their
employees to act in a way that is
consistent with our Code and we take
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2017 CORPORATE SOCIAL AND ENVIRONMENTAL RESPONSIBILITY REPORT
appropriate actions where we believe
they have not met our expectations on
their contractual obligations.
We make all payments to the partners in
compliance with any applicable anti-
money laundering regulation from time to
time.
Furthermore, the shares of Electro Power
Systems S.A. are listed on the regulated
market of Euronext in Paris. In this
context, compliance by the Partner with
rules applicable to stock transactions and
the holding and use of material non-public
information it may receive in the course of
its activities under this Agreement is
crucial for the Company. Such rules
mainly stem from Articles 621-2 to 622-2
of the General Regulation of the French
Autorité des Marchés Financiers (AMF)
and Articles L. 465-1 et seq. of the French
Monetary and Financial Code.
In 2016 the Group introduced an anti-
corruption compliance plan to which all
suppliers and partners will be asked to
adhere. We have incorporated CSR
criteria in our purchasing processes and
decisions, such as occupational health
and safety, consideration of human rights,
respect of labour and environment.
Specific sustainability criteria are
envisaged in terms of the approval
procedures, procurement choices,
contractual clauses and means of
checking the work of suppliers.
Future challenges and approaches
We will incorporate CSR criteria in our
purchasing processes and decisions,
such as occupational health and safety,
consideration of human rights, respect of
labour and environment. For the
upcoming years, the Group plans to
create a Best Technology Provider Award
to reward and provide further visibility to
the most strategic partners.
The Group is introducing a procurement
policy which entrusts tender contracts for
works, services and supplies in
compliance with the legislation in force
and the principles of cost-effectiveness,
correctness, competition, and
advertising, using procedures which
guarantee participating businesses the
utmost transparency, objectivity and
equality of treatment.
5.7 Other measures taken in favor of human
rights
We at EPS have set respect for human
rights as the most important principle for
conducting sound business activities.
Wherever the EPS Group operates in the
world, the company applies the same
high standards and principles of conduct.
Respect, diversity, integrity, ethics, safety
and sustainability — the elements that
make up the EPS’ corporate culture
foundation — are taken into account by
employees during their meetings with
customers and colleagues around the
globe.
The Group complies with all applicable
laws and regulations concerning human
rights in each country and region,
understands international standards, and
respect human rights, and shall not
condone any use of either child labour or
forced labour.
Future challenges and approaches
We will keep upholding human rights as
one of our management principles and we
will promote awareness about our
commitment to protect human rights
throughout the Group with specific
workshops in the EPS’ Academy.
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6. METHODOLOGY NOTE
This CSR Report provides a detailed
presentation of Group corporate social
and environmental responsibility priorities
and practices. It describes the current and
future challenges faced by the Group in
this area, the strategic approaches
adopted in response and progress
achieved in meeting its objectives. This
report is drawn up in accordance with
CSR reporting requirements applicable in
France (L.225-102-1 and R.225-105-1 of
the French Commercial Code). It
provides a tool for measuring
employment-related and societal
impacts, governance and environmental
performances.
This report was reviewed for compliance
by the independent third-party, BDO
France – Léger & associés.
6.1 Reporting boundaries and indicators
selection criteria
The reporting boundary for employment,
social and environmental indicators is
comprised of the subsidiaries controlled
by the Group as at 31 December 2017.
These subsidiaries are consolidated
according to the full consolidation
method.
The reporting boundary for employment
indicators for fiscal 2017 coincides with
the Group’s structure for consolidation
(cf. paragraph 3.7 of the Consolidated
Financial Statements).
The following indicators concern only the
workforce located in Italy due to the
immateriality of information reported by
other entities of the Group (Electro Power
Systems Inc. and Electro Power Systems
India Private Ltd.), essentially because of
either the non-operational activities or the
exclusive focus on business
development:
• occupational accidents
• absenteeism
• training and the organization of
dialogue between employees and
management
• equal opportunity employment
Analysis of employment-related,
environmental and social impacts relating
to Group activities made it possible to
define relevant indicators in accordance
with requirements resulting from the
Grenelle II Environmental Law (article
225). Certain information not falling within
the scope of the Group’s activity or its
environmental and societal priorities due
to its operating method and structure was
not considered pertinent and on that basis
included in the reporting boundary just in
the “Future challenges and approaches”
section, or, with reference to the following
information, excluded from this report and
its reporting boundary:
• water consumption and supply in relation to local constraints;
• land use;
• climate change;
• biodiversity;
• impacts on neighboring or local populations;
• actions against food waste.
6.2 Indicators criteria
Below are the methods for calculating
• Total absenteeism = B / (A+B).
Sickness absenteeism = C / (A+B).
Where:
A = Number of hours effectively worked
by all Employees with contracts, including
training
B = Number of hours of absence (sick
leave, occupational diseases, maternity
leave, accidents in the work place and/or
travel-to-work accidents or any other
absence not provided for by contract or
social shock absorbers schemes)
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2017 CORPORATE SOCIAL AND ENVIRONMENTAL RESPONSIBILITY REPORT
C = Number of days of sick leave
(excluding occupational diseases,
maternity leave, accidents in the work
place and/or travel-to-work accidents)
• Headcount: full and part-time
employees on fixed-term, permanent,
temporary and professional training
contracts, and permanent advisors
(“Employees”), as well as management
(including Chairman, Executive board
members and members of the Executive
Committee), and partners dedicated to
the business development (which have
been contracted through business
partnership agreements), in force as at 31
December 2017. Temporary personnel is
not included in this data. When reference
is made to “at the date of this report”, the
data includes Employees of EPS and
Employees of Elvi Energy and MCM and
their partners as at the date hereof.
• Training: the percentage of persons
trained in relation to the total Italian
workforce at 31 December 2017.
• Workforce by social professional
category: as the same classification
for management versus non-
management employees does not
exist in certain countries,
management refers exclusively to
chairman, executive and active
members of the board.
Total Recordable Incident Rate (TRIR): is
a commonly used indicator that measures
how many OSHA recordable incidents a
company has per number of hours
worked
TRIR = (# of Recordable Injuries *
200,000) / # hours worked.
• Lost Time Injury Frequency Rate
(LTIFR): is the number of lost time injuries
occurring in a workplace per 1 million
man-hours worked.
LTIFR = (# of Lost Time Injuries *
1,000,000) / # hours wo
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2017 CORPORATE SOCIAL AND ENVIRONMENTAL RESPONSIBILITY REPORT
7. CONCORDANCE TABLE
To facilitate the reading of the CSR report, the following concordance table provides cross-
references to the main categories of information required by French law (Grenelle II Environmental
Law and article R. 225-105.1 of the French Commercial Code):
Grenelle II Environmental Law (article R. 225-105.1 of the French Commercial Code)
ENVIRONMENTAL INFORMATION
Environmental policy
Organization of the company to take into account environmental concerns. Environmental evaluation and
verification approaches
4 / 4.1
Training and information towards employees on environmental protection 3.5
Budget dedicated to environmental protection and environmental risk mitigation 4.1
Financial provisions for environmental risks 4.2
Circular Economy
Prevention, reduction and fixing of air/water/soil emissions 4.2
Prevention, recycling and cutting waste 4.2
Noise pollution and others types of pollution 4.2
The significant posts of greenhouse gas emissions generated by the company’s activities, in
particular through the use of the goods and services it produces
Water consumption 4.3
Water supply considering local resources 4.3
Consumption of raw materials 4.3
Measures taken to improve the efficiency of raw materials use 4.3
Energy consumption 4.3
Measures to improve energy efficiency and better use renewable energies 4.3
Land use 6.1
Climate change
Greenhouse gas emissions 4.4
Measures to adapt to climate change 4.4
Biodiversity preservation
SOCIAL INFORMATION
Employment
Total workforce 3.1.1
Workforce broken down by gender 3.1.1
Workforce broken down by age bracket 3.1.1
Workforce broken down by region 3.1.1
Hires 3.1.2
Redundancies 3.1.2
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2017 CORPORATE SOCIAL AND ENVIRONMENTAL RESPONSIBILITY REPORT
Compensations 3.1.5 / 3.1.6
Evolution of compensation 3.1.6
Organization of work
Organization of work time 3.2.1
Absenteeism 3.2.2
Labor relations
Organization of social dialogue 3.3.
Outcome of the collective agreements 3.3.
Occupational health & safety
Health and safety conditions at work 3.4
Outcome of the collective agreements signed with trade unions regarding occupational health and safety 3.3
Frequency and seriousness of incidents 3.4
Occupational diseases 3.4
Training
Policies implemented regarding training 3.5
Total number of training hours 3.5
Equal treatment
Measures promoting gender equality 3.6
Measures promoting the employment and integration of people with disabilities 3.6
Policy against discrimination 3.6
Promotion and respect for the clauses of ILO conventions
Respect for the right to organize and collective bargaining 3.7
Abolition of discrimination in employment and occupation 3.7
Abolition of forced or compulsory labor Abolition of child labor 3.7
INFORMATION REGARDING COMMUNITY AND SOCIAL INVOLVEMENT PROMOTING
SUSTAINABLE DEVELOPMENT
Regional, economic and social impact created by the activity of the company
Regarding employment and local development 5.1 / 5.2
Impact on local and neighbouring communities 6.1
Actions against food waste N.A.
Stakeholder relationship
Conditions of the dialogue with the persons and organizations 5.2
Philanthropic actions and community involvement 5.3
Subcontracting and suppliers
Integration of the social and environmental issues within the sourcing policy 5.5
Importance of subcontracting and integration of CSR in the relationships with suppliers and subcontractors 5.5
Fair operating practices
Actions implemented to prevent any kind of corruption 5.6
Measures implemented to promote consumer health and safety 5.6 / 3.4
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2017 CORPORATE SOCIAL AND ENVIRONMENTAL RESPONSIBILITY REPORT
Other actions promoting human rights 5.7 / 5.3
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