Fedrigoni Group Consolidated Financial Statement …...During 2014, the Fabriano brand will celebrate 750 years of history in paper, which will be remembered with events designed to

Fedrigoni GroupConsolidated Financial Statement and Environmental and Health Report 2013

Dear Shareholders,

Your Company has honoured with excellent results the year of the one hundred

and twenty-fifth anniversary of its long history composed of important successes,

obtained with courage and sacrifice.

Although the difficult conditions in national and international markets, particularly

in our sector, have not changed, the Company has continued along its path, combining

tradition and development, investing and innovating in new production plants,

new special products and new markets. It has also streamlined its own corporate

structure, making it more competitive and reducing direct and indirect costs.

It re-examined its own organisational models and distribution and logistics systems

and it completed its IT networks. All of this allowed important economies of scale,

in this way making Your Company always more ready to compete on global markets.

Things are changing. The storm seems to be abating and the winds blowing against

us are lighter. Companies that have resisted today find themselves in a good position

to face the future with confidence.

Confidence that we have never lacked because it is accompanied by the whole

of our coherent, motivated and competent corporate body, and this encourages us

towards further interesting growth developments in the future.

The positive start of 2014 confirms a good growth in all the sectors of Your

Company, the result of prudent choices and precise strategic decisions.

During 2014, the Fabriano brand will celebrate 750 years of history in paper, which

will be remembered with events designed to support and develop our already very

well-known brand.

It is with great pride and pleasure that our Company remembers the honours

degree in Economy and Corporate Management of our CEO Claudio Alfonsi. To the

new graduate our very best wishes and congratulations for this further, very fine

achievement.

The Chairman

Alessandro Fedrigoni

Environmental, Health and Safety Group Report 2013

90

98

112

122

130

142

148

152

Introduction

Ethics, health and safety

The final eco-product

The science of raw materials

in the paper production

The ecology of industrial waste

The science of raw

materials for converting


Health and safety performance

in the workplace

Environmental, Health and Safety Group

Report 2013

9190 Consolidated Financial Statement and Environmental and Health Report 2013

1 Source: UN estimate.

Introduction

Every year that goes by more focus is put

on sustainability. On a planet1 that will have

approximately nine billion inhabitants by 2040,

where cultivated land and water resources remain

under pressure and atmospheric emissions do not

seem to be diminishing, no one can seriously play

down the efforts of the United Nations Brundtland

Committee toward one universal objective:

sustainable development, that is, ‘development

that meets the needs of the present without

compromising the ability of future generations to

meet their own needs’.

On the strength of its constant technological

innovation which has been the life force of its

production facilities over its 125 year history –

which falls exactly in 2013 – Fedrigoni SpA intends

to improve, year after year, period after period, its

own environmental and social performances.

Each one of us has the obligation to do its

part, despite the uncertainty-ridden economic

environment. You don’t need a crystal ball to see

this: within a half century from now, according

to the population growth estimates, there will

be foreseeably further pressure on natural

resources which will become even scarcer due to

the progressive increase of the earth’s average

temperature.

In order not to compromise the well being

of future generations, we are convinced that

companies, which due to their very nature need to

be able to look ahead, must use this trait to improve

their own impact on the environment and society,

step by step.

The paper industry overall, at least in the

western countries, has understood this very well.

Indeed, today almost all the wood used to produce

pulp comes from residues generated by other

manufacturing sectors that use wood and also

from the forestry thinning, an operation that is

necessary in order for forests to be kept healthy

and renovated. In particular, we almost exclusively

use pulp originating from wood that comes from

sustainably managed forests, that is those which

are grown for production purposes in which planting

takes place on a continuous basis.

The European Paper industry therefore has

a significant role in the renewal and extension of

worldwide forest areas.

Fedrigoni fully supports this environmental

policy and its mission for 125 years now has been

to manufacture and improve special papers,

which are stimulating to the sight and touch and

are reminiscent of natural surfaces while fully

respecting the environment. For this reason, even

in the production phase, bleaches, chlorine and

petroleum derivatives have not been used for a

very long time.

We constantly strive to implement a myriad of

small technological improvements and this is proven

by the fact that in the last 10 years the Fedrigoni

Group has improved overall, by significantly

reducing consumption of raw materials, water,

energy and chemical additives.

In this integrated report on the environment,

safety and health, the Fedrigoni Group reports

on its investments and the progress made in the

name of the world citizens of today and those

of the future.

Fig. 01 Breakdown of raw materials and service costs 2013

30 %

25 %

20 %

15 %

10 %

5 %

Fibers and cottons

Chemicals Frontals and supports

for adhesive products

Other materials Total energies Logistics

31 % 25 % 21 % 1 % 11 % 11 %


Report 2013


Stakeholders

The world of Fedrigoni stakeholders is rather

complex. It would be immediately useful to

distinguish among the stakeholders closest to the

company between direct customers - entered in the

Group’s accounting databases – such as printers,

labellers, stationers (partly graphic papers and

partly converting), or wholesalers of office, school

and art supplies (paper sector) or central banks

(security) on the one hand, and specifiers - graphic

studios and creative agencies who advise final

customers, who in turn commissions adhesive or

printed products or packaging for their products.

Other specifiers in graphics and office sectors

include, for example, manufacturers of digital

printing machines; in the art and school sphere,

teachers indicate materials.

The range embraces young, small and dynamic

companies such as producers of organic food and

wine to in large printing and packaging companies

working for international clients.

There are also, of course, institutional

stakeholders, such as banks, trade unions, trade

associations, etc.

Direct and indirect stakeholders by production segment

Actions

• Employees and direct agents - vocational training meetings- product and catalogue update meetings

• Suppliers of raw materials, auxialiary products and services

direct meetings

• First Grade secondary school teachers; students attending Second Grade Secondary Schools and Universities

- training initiatives: ‘Officine Fabriano’ with regional meetings dedicated to teachers of art-related subjects

- lectures for students of advanced design courses in the use of paper in graphic design

• Academic world/researchers - through the Gianfranco Fedrigoni Foundation - Istocarta: study days and conferences

• Banks information meetings

• Trade unions information meetings

• Trade associations and sector authorities (Graphic Trade Associations, Industrial Design Associations, German Design Council, etc.)

- information meetings- updates- collaborations

• Non-governmental organisations (Greenpeace, WWF, FAI, etc.)

- information meetings- collaborations

• Customers, specifiers, end users by sector: see details below

CONVERTING

• Clients Graphic Arts, Labellers, Tanneries

- direct contacts with agents and technicians - technical assistance and consulting- definition of special products- sending updated catalogues

• Designers Advertising agencies, Graphic Design Studios

- information and updated product catalogues through the sales force and e-mailing

• End-users Wineries, breweries, distilleries, wine and spirits distributors, food companies, cosmetic and pharmaceutical companies, central Governments, large scale retailers, producers of leatherware and leather accessories

- targeted information action for products and services through sales force and dedicated projects

PAPER & SECURITY

Paper

• Customers Publishers, Graphic Arts, Converters, Screen-Printers, Box-makers, Bag-makers, Large Scale Retailers, Fine Arts Shops, Stationers

- direct contact with sales agents- pre and post sale technical assistance

and consulting- definition of made-to-measure products- updated catalogues- invitations to special events

• Designers Advertising agencies, Graphic design studios, illustrators, photographers

- information and updating of product catalogues- technical consulting through dedicated promoters - invitations to special events

• End-users Fashion houses, producers of fashion and furniture accessories, food companies, cosmetic and personal care companies, students, artists, engravers

- information action focusing on products and services through promoters

- dedicated marketing projects

SECURITY

• Clients

• International state institutions - direct meetings- participation in procurement tenders

Fig. 02


Report 2013


Fig. 03 Origin of pulp

EU25.7%

NORTH AMERICA2.3%

SOUTH AMERICA69.5%

AFRICA 0.9%

RUSSIA1.4%

AUSTRALIA0.2%

Finally there is water, which is rightfully

considered as the ‘second raw material’ of

the paper industry: with its investments and

continuous flow of innovations, Fedrigoni has been

able to considerably reduce the use of the most

common and concurrently the most precious liquid

on the planet.

Between 2002 and 2013, despite the fact that

production increased by 63%, Fedrigoni plants

decreased their average consumption of fresh

water by 44%.

Energy, efficiency, emissions

Energy is of central importance in paper

manufacturing. However it is also the central issue

in the main environmental dilemma confronting

future generations: global warming.

Fedrigoni has responded by investing in methane

cogeneration in the main plants of the Group

while seeking out every possible technological

improvement insofar as energy efficiency. All this,

while it followed the guidelines set by the Kyoto

Protocol (like the entire and very large European

Paper industry) and participated in the ETS

greenhouse gas emissions trading system, in order

to offset its own carbon dioxide emissions.

The results were not late in coming. Between

2002 and 2013, the Group decreased its own CO2

emissions by 28%, despite the fact that paper

manufacturing during the same period increased by

60%. Nitrogen oxides emissions (NOx) were almost

cut in half: – 46%.

Again over the last 12 years, the Group’s

electricity and heating needs dropped by 42%.

Proportionally, specific consumption on gross

production dropped as follows: methane by 20%

and thermal energy by 42%.

2 Attribution of pulp defined by Fedrigoni SpA on the basis of and applying the provisions of standard FSC-STD-40-005 / Version 2-1 EN (standard for company evaluation of FSC® controlled wood), the reliability and correspondence of which is verified each year by a third party entity that certifies our company’s FSC® system.

Ethics, health, safety

Since it first became known at the end of the 1960s,

the concept of corporate social responsibility has

expanded rapidly. The stakeholders who initially

included the employees, customers, suppliers and

the communities around the industrial plants, have

expanded now to also include the shareholders and

the trade unions, local and national governments

and the nongovernmental organizations.

In addition to faithfully following the broad span

of regulations imposed by laws and national and

international standards, Fedrigoni also compiled

a Code of Ethics as early as 1998, which was

reviewed and streamlined over time. The Group is

committed to following rules of conduct that often

exceed, in terms of objectives, the regulations,

thereby precluding any compromises insofar as

environmental imprint, safety in the workplace

and in general the impact of its industrial activities

on society.

The science of raw materials

Due to its corporate policy and in compliance with

the code of ethics of the European Paper industry,

Fedrigoni only purchases pulp which originates

from forests that comply with the FSC® forest

management certification, or Controlled Wood

certification (sources controlled by third parties or

a specific certification procedure which is internal

to the company2). We can now affirm that 63% of

the paper produced by Fedrigoni is FSC-CoC (Chain

of Custody) certified while the remaining is anyway

of FSC Controlled Wood type.

Ancillary materials, such as mineral fillers,

colouring and binding substances required for

certain productions, are carefully selected to

ensure that the least possible environmental impact

is caused: before, during and after their use.


Report 2013

9796 Bilancio Consolidato e Report Ambiente e Sicurezza 2012

Ecology of industrial residues

One of the sustainability issues relating to the

paper industry concerns the use of water, as this

particular industrial process indeed requires water

purification. This is an area in which the Fedrigoni

Group has invested heavily and continues to do so,

in order to ensure that it has the best technological

performances. However, the main waste of the

paper sector derives from this process (which

can be of a chemical–physical or biological nature

or both them in combination): it is residual sludge,

which though being entirely biodegradable,

it also requires a careful waste disposal or

recovery process.

The Group has adopted technical and

technological solutions to reduce pollutants: the

less they are used the less sludge is produced. As a

result, between 2002 and 2013, residual sludge has

decreased by 46%. We also reiterate that a very

large percentage of the residual sludge is used in

furnaces to produce bricks. During the same period,

the total production of waste (the sludge and

any other waste), in relation to gross production,

dropped by 36%.

The final product

The company’s duties consist not only of selecting

the inputs to the industrial process with extreme

care and then carefully disposing of the residues.

The actual manufacturing - the output - requires an

attention to detail that Fedrigoni pursues constantly,

based on its Code of Ethics and the laws, but also

on the priority it gets to safety inside and outside

the plants.

We monitor noise pollution to protect the health

of our workers internally and the tranquility of

the inhabitants externally and strictly control the

hazardous substances that are used in certain of

our production processes. Additionally, we protect

the soil and the safety of our workers, with the

three best weapons at our disposal: prevention,

training and organization.

Fedrigoni products, whether in the paper

business or the converting business, are

guaranteed to be eco-compatible. The international

standards followed by the parent company and its

subsidiaries are proof of this as are the voluntary

product certifications and all the ecological

trademarks required by the ISO standards, which

are certifications of the broadest ecological and

safety peculiarities.

Sustainability is a route. There is no exact

destination point: the margins for improvement,

opportunities for change, promises of innovation

are so many that every year that goes by, at the

end of every financial year, we can and must

always do a little bit better. In the name also of

the generations to come.

Proud of the headway it has made thus far, the

Fedrigoni Group is moving towards an even greener

and more sustainable future.

Fig. 04 Input and output of the industrial process

Input Output

Pulp293,000 tons

Fillers-chemical198,000 tons

Frontals and supports for adhesive products

98,570 tons

Cotton12,000 tons

Electricity42,390 mWh

Water13,647 m3 (’000)

Natural gas1,326,500 mWh

Sold electricity of which hydro (28%)69,000 mWh

Adhesive papers668,000 m2 (’000)

Wasteof which to the brick industry (7%)14,940 tons

Paper407,400 tons

Security product11,600 tons


Report 2013


Ethics, health and safety

The Code of Ethics

Published for the first time in 1998, the Company’s

Code of Ethics has changed over time to include

new principles and improve the originally existing

ones: from respect of people to compliance with

the laws and regulations, from transparency in

conducting business to confidentiality and relations

with stakeholders: the shareholders, customers,

employees, suppliers, associates, and also the

media, public authorities, employers' and social

associations and associations for the protection of

the environment, safety and health in the workplace.

As a further extension of the principles set forth

in the Code of Ethics, our commitment to quality, the

environment and safety is specifically expressed in

the integrated policy document, which declares:

• the Company’s main objective is the satisfaction of

our Customers. Therefore, our relation with them

before, during and after the use of our products

and our support services, must be as open as

possible and focused on collaboration so that we

can correctly assess their needs, respond to them

in an immediate and effective manner through the

development and supply of products that respond

to their requirements and services able to satisfy

their expectations;

• maintaining and improving competitiveness on

the global market is a fundamental objective.

To achieve this, we will use our tradition, skills,

specialization and knowledge accumulated over the

years, which have become even stronger through

the cohesion and moral fibre of our Employees;

• every activity must be carried out and managed

according to sustainability and social responsibility

criteria to ensure the quality of the products and

services and the protection of the environment

and of the safety and health of our workers, on the

one hand, and the profitability and integrity of the

company assets on the other;

• the adoption and application of an integrated

management system for quality, the environment,

safety and health in the workplace in addition to

the requirements established by the applicable

laws, with a view to continuous improvement,

must aim to ensure the functionality and the

performance of products and services, a rational

and responsible use of resources, minimized

environmental impact and the achievement of

an excellent track record in accident prevention;

• our suppliers and external associates are also

encouraged to comply with principles

of sustainability;

• the Company as a whole must be committed to

respecting a system of good manufacturing and

management practices, in compliance with the

applicable laws and regulations, through conduct

that is always in line with its Code of Ethics;

• it is the Company’s duty to provide the necessary

resources with which to pursue the objectives

for improvement in terms of quality, quantity, the

environment, safety and health, not only as an

integral part of our regular activities, but also as a

strategic commitment insofar as its more general

objectives, while concurrently adopting the best

available techniques in terms of low management

costs and the cost/benefit ratio;

• internal cooperation and coordination between the

Company's various departments on the one hand

and maintaining correct and transparent relations

with labour organizations, employer and business

organizations, the authorities, public and private

institutions and third party entities on the other

are essential conditions for growth;

• each of the Company’s employees, on the basis

of his/her role, the duties assigned and the

skills acquired, must participate and responsibly

contribute to reach the established improvement

goals, including those which refer to quality, the

environment, safety and health in the workplace.

The Organisation Model

The Company and all its subsidiaries have an

'Organisational Model' that complies with the Italian

Legislative Decree no. 231/01 and subsequent

amendments, whose purpose is to regulate the

administrative responsibilities of legal persons,

companies and of associations, including those

without a legal personality.

Though the law does not impose it directly, this

guidance document, once adopted and applied,

will serve as a further, effective instrument

for monitoring compliance with what has been

essentially established by the Code of Ethics and the

Integrated Policy document.

This guidance document consists of:

• a series of operational procedures and protocols

for shaping decisions, drawing them up and putting

them into practice;

• Supervisory Body whose task is to supervise the

model's real effectiveness;

• an internal disciplinary system;

• specific training activities;

• assessment sheets for individual risks which can

be associated with offences under the Decree,

with resulting prevention and mitigation measures;

• the Code of Ethics.


Report 2013


Management system

voluntary certifications

The Group’s main objective is for the quality,

products and services to fulfil the requirements

of the customer.

There is no doubt that the demand for

sustainability by businesses and consumers has

increased considerably over the last few years.

The market requires products and processes

that do not adversely affect the environment.

It requires that industrial activities be carried out

in full respect of safety and health and it demands

that the Fedrigoni paper provide a guarantee of

eco-compatibility.

In an organization that is as articulated and

differentiated as Fedrigoni, this is no simple task.

However, the Group followed the path set by

international regulatory standards: UNI EN ISO

900:2008 (quality management system), UNI EN ISO

14001:2004 (environmental management system)

and BSI OHSAS 18001:2007 (health and safety in the

workplace).

The company’s adoption of these standards started

as far back as 1993 to be consolidated and extended

in subsequent years to group companies as well.

The current situation is shown in table 01.

Furthermore, the plants of Fabriano (province

of Ancona) and Bollate (province of Milan) have

been registered with the European Central Bank

(ECB) and the Bank of Italy as manufacturers

and suppliers of banknotes and paper securities,

holograms and security threads. This suitability

is also recognised by the central banks of several

other countries around the world, which both

companies supply.

Fedrigoni SpA Arconvert SpA Manter SA Arconvert Brasil Ltda (operations

began in 2009)

UNI EN ISO 9001:2008Quality management system X X X X

Year of 1st certification 1993 1997 1995 2010

Certificate identification number CQ 539 CH 97/0116 ER 0277/1995FS 562456 BSI America

UNI EN ISO 14001:2004Environmental management system X X X –

Year of 1st certification 1999 2002 2009 –

Certificate identification number CQ 7847 CH 02/0955 ES 0056/2009 –

BSI – OHSAS 18001:2007 Occupational Health and Safety Management System X X X –

Year of 1st certification 2006 2008 2011 –

Certificate identification number CQ 15229 CH 08/1328 ES–SST–0102/2011 –

AEOF3 Authorized Economic Operator full type X – – –

Year of 1st certification 2010 – – –

Certificate identification number IT AEOF 10 0251 – – –

Tab. 01

3 AEOF certification, issued by the General Department for duties and customer relations – Customs and Taxes office – is regulated by art. 5 bis of the Regulation (EEC) no. 2913/92 (CDC), as amended by Regulation (EC) no. 648/2005 and art. 14bis to 14 quindicies of Regulation (EEC) no. 2454/93 (DAC) as amended by Regulation (EC) no. 1875/2006. This certification is granted after the national Custom’s Authority ascertains compliance with customs obligations, fulfillment of the required accounting system criteria, financial solvency, compliance with appropriate standards for accounting gentries and the applicable regulations for safety and health in the workplace and is monitored on an annual basis through maintenance audits conducted by the district offices of the Custom’s Agency having territorial jurisdiction over the Company’s units


Report 2013


Voluntary product certifications

and labels

Now that the market is ever more aware of the

environmental and social impact of industrial

products, including paper, compliance with the

principles of sustainability has become a variable

that is very important in the buying process, often

as much as price. As a result, it constitutes a

competitive advantage.

For Fedrigoni SpA, therefore, it is essential to

maintain and improve the quality of its products and

services over time, while ensuring protection of

the environment and the reproducibility of natural

resources, in accordance with the development

needs of the company and conforming to the

principles of sustainability as defined in the 1987

Brundtland Report issued by the World Commission

on Environment and Development (WCED), which

defines sustainable development as ‘Development

that meets the needs of the present without

compromising the ability of future generations to

meet their own needs.’

Obviously, commitment to sustainability is backed

up with product certifications issued by independent

third parties. To avoid disorienting consumers with

a plethora of labels and declarations, Fedrigoni has

opted to adopt international standard ISO 140214,

ISO 140245 and ISO 140256. The main product eco-

labels and sustainability labels currently issued by

third parties are shown in Table 02.

4 ISO 14021 – Regulates the use of eco-labels and environmental declarations (Type II environmental declarations) providing environmental information declared by manufacturers, importers or distributors of products, without the intervention of an independent certification body. There is however a series of requirements to be complied with relating to the method of distribution and the content of the information.

5 ISO 14024 – Regulates the awarding of voluntary eco-labels (Type I environmental declarations) certified by a third party, based on a multiple criteria system which considers a product full life cycle on the basis of an L.C.A. (Life Cycle Analysis) conducted pursuant to the indications set forth in standard ISO 14040 so as to ensure that the information is objective. The criteria set the minimum values to be complied with in order for the label to be issued and the competent body issuing the label may be public or private.

6 ISO 14025 – Regulates the awarding of Type III environmental declarations providing information based on established parameters quantifying the environmental impact of the product’s life cycle calculated using an L.C.A. system. They are subjected to an independent audit and presented in a clear and comparable manner. Among these are, for example, the ‘Environmental Product Declarations’ (EPDs).

Tab. 02

2012 Fedrigoni SpA Arconvert SpA Manter SA

FSC® – CHAIN OF CUSTODYas per FSC – STD – 40 – 004 / V 2 – 0 EN X X X

Type of certification

Mixed with credit system

and transfer system Transfer system Transfer system

Year of 1st certification 2005 2010 2011

Certificate number CQ – COC 000010 ICILA – COC 000382 TT – COC 003616

Sector certified Entire company Entire company Entire company

FSC® – CONTROLLED WOODas per FSC – STD – 40 – 005 / V 2 – 1 EN X – –

Type of certification

Supplies of pulp deriving

from controlled wood sources – –

Year of 1st certification 2009 – –

Certificate number

CQ – CW

000010 – –

Sector certified Entire company – –

PEFCNational standards – X X

Type of certification – Percentage Percentage

Year of 1st certification – 2010 2010

Certificate number – ICILA – COCPEFC – 148 PEFC 14 – 35 – 00113

Sector certified – Entire company Entire company


Report 2013


Eco-labels

In addition to third-party certifications, other labels

certify specific environmental or safety properties

pursuant to standard ISO 140214 :

pH NeutralThe watery extract of the

fibrous support is pH neutral.

Acid freeUse of production processes

conducted in acid-free

environments, in particula

with regard to the phases

of paper gluing.

Long lifeComplies with the requirements

of the ISO 9706 standard, allowing

the paper to be classified as

‘long life’ and guaranteeing its

durability, while also certifying that

it contains no more than 5% of

wood pulp or semi-chemical pulp,

has a pH between 7.5 and 10 in

the watery extract and an alkaline

reserve of more than 2%.

Elemental Chlorine

FreeThe pulp was bleached using

environmentally-friendly

processes that guarantee a

maximum level of derived organic

chlorine compound contents

of less than 0.8 kg/ton.

Total Chlorine FreeThe pulp was bleached using

environmentally-friendly processes

that use no chlorine-based

products at all and guarantee a

maximum level of derived organic

chlorine compound contents

of less than 0.2 kg/ton.

Selected Secondary

FibersUse of highly selected recycled

secondary pre-consumer and

post-consumer fibres.

Annual FibersUse of pulp fibres from annual low-

growth plants such as bamboo,

hemp, kenaf and linen, thus

contributing to reducing tall

tree logging.

Well managed forestUse of pulp deriving from wood

coming from sustainably managed

forests. This logo certifies that

the wood-based raw materials

comply with the best principles of

environmental sustainability in the

case of those of our products that

are not already covered by CoC-

FSC certification.

Cotton based productUse of cotton fibres (annual plant)

in the fibrous constitution of the

product.

Wet strength productProduct with high resistance

to humidity.

Heavy Metal AbsenceSpecific compliance with the

European Directive 94/62/EC

converted into law in Italy by

Legislative Decree no. 22 of 5

February 1997 and subsequent

amendments, which defines the

maximum thresholds allowed for

heavy metals in packaging and

waste from packaging.

Hydro PowerProduct manufactured using

hydroelectric energy which

is renewable.

NOTE RELATED TO THE LOGO ‘HEAVY METAL ABSENCE’Initially drafted to only certify compliance with the provisions of the European Directive no. 94/62/EC, it now also covers compliance with other European Directives which otherwise regulate the presence of heavy metals, including directives no. 2002/61/EC, no. 2003/03/EC, no. 76/769/EC, no. 2002/ 96/EC, no. 2002/96/EC, no. 88/378/EEC and European Standard EN 71–1:1998 / Part III, as updated by the memorandum issued by the European Commission no. 2002/C 188/08 and no. 2003/11/EC containing Amendment XXIV to the European Directive no. 76/769/EEC.

STR E N GT

H

WET


Report 2013


Since establishment

Members of the Assocarta Commission for

the Environment, Safety and Energy.

Members of, and presence at the

European level, in the C.E.P.I.

1998

Promotion and participation in the ‘Ecogestione’

project of the Cartiere italiane under the

coordination of Assocarta.

2002

Collaboration with Assocarta for definition of the

guidelines for the application for Integrated Environmental

Authorization in the paper industry.

2002/2003

Participation in the definition of Assocarta’s

new web portal ‘Osservatorio Ambientale’

(Environmental Observatory).

2003

Participation in the activities of ‘Agenda 21’ organized

by the municipality of Riva del Garda (province of Trento).

development: it is the natural path for a company to

follow in the 21st century.

In the last few years, Fedrigoni has been involved

in small and large initiatives that are summarized as

follows below:

2003/2004

Contribution to Assocarta’s ‘Emission Trading’ project

for application of the European directive no. 2003/87/EC

regarding the participation of the European Community in

the Kyoto protocol for the reduction of greenhouse gases.

2005

Member of the Assocarta working group for definition

of the guidelines for the training of Prevention and

Protection Service Managers (Italian acronym: RSPP –

Responsabili del Servizio di Prevenzione e Protezione)

in the paper industry.

from 2005 al 2009

Participation in the ‘Verona Aziende Sicure’ (safe

companies in Verona) project promoted by the provincial

coordination of SPISAL (ULSS no. 20, 21 and 22) and

chaired by SPISAL of ULSS no. 20 of Verona under the

auspices of various institutional entities including the

municipality of Verona, the province of Verona, the INAIL

(Italian national institute for insurance against accidents),

the Chamber of Commerce of Verona, the CGIL, CISL

and UIL trade unions, Confindustria Verona, Apindustria

Verona, and the Trade Associations (C.N.A, U.P.A. and

Artigiani Riuniti). The results obtained have been publicly

available from the beginning of 2009 and are:

• TECHNICAL – OPERATING MANUAL for implementation

of a management system for safety and health in

the workplace (Author: Dr. Paolo Azzolini -Quality,

Environment and Safety Department Manager,

Fedrigoni SpA);

• A COMPILATION OF OPERATING CHECKLISTS referring

to the aforementioned Technical and Operating Manual

Dr. Paolo Azzolini – Quality, Environment and Safety

Department Manager, Fedrigoni SpA).

2006

Endorsement in the Sustainability Declaration of the

International paper industry during the C.E.O. meeting at the

roundtable of the I.C.F.P.A. – ‘International Council of Forest

and Paper Association’ – endorsed by 43 countries. This

document illustrates the main commitments made by the

paper industry to combine economic competitiveness with

environmental and social sustainability.

2007

Winner of the ‘VERONA AZIENDE SICURE 2006’ award

bestowed by the municipality of Verona for safety

prevention in the workplace.

2008

Winner of the ‘VERONA AZIENDE SICURE 2006’ award

bestowed by the municipality of Verona for safety prevention

in the workplace. Winner of the ‘VERONA AZIENDE SICURE

2006’ award bestowed by the municipality of Verona for

safety prevention in the workplace.

Provision to the FAI (Fondo Ambiente Italiano – Italian

National Trust) of Freelife Vellum, a paper with two

separate certificates (CoC-FSC and Ecolabel) for their

major publications.

from 2008

The Quality, Environment and Safety Department Manager

at Fedrigoni SpA lectures at the Faculty of Economics

of the University of Verona in the 1st level Masters and

postgraduate courses in Internal Auditing on ‘Basic

principles and procedures for applying quality and

safety audits’.

2010

Participation in the survey conducted by Greenpeace on the

origin, the procurement, the valuation criteria for suppliers,

the management and the use of wood based raw materials

in the Italian paper industry.

2011

Participation in the survey conducted by WWF on the origin,

the procurement, the valuation criteria for suppliers, the

management and the use of wood based raw materials in

the European paper industry.

2012

Participation in the technical conference held by the Ministry

of the Environment with delegation to the Marche and

Tuscany regions for the Italian opinion on the revision of the

Bref Report for the Production of Pulp, Paper and Board –

draft 2 of May 2012 –pursuant to Directive 2010/75/EU and

European directive no. 61/96/EC, also known as the I.P.P.C.

(Integrated Pollution Prevention and Control) Directive.

2013

In early 2013, the WWF invited 70 of the world’s most

important pulp and paper manufacturers in the world to

participate in the third Environmental Paper Company

Index 2013 with the aim of recognizing their leadership in

transparency. Fedrigoni SpA was one of just 25 companies in

the industry - and the only Italian paper group in the graphic

paper segment - to take the opportunity to demonstrate

their transparency by voluntarily disclosing data on their

sustainability performance after WWF’s invitation.

The Company’s social responsibility

The Company, while not certified under SA 80007

or AA 10008, has always applied the principles

set out in 2010 by the ISO 26000 Guideline9, which

form the basis of Corporate Social Responsibility

(CSR), in acknowledgement of the fact that social

responsibility constitutes the basis of sustainable

7 SA 8000 is a certification standard that ensures working conditions in companies that meet the principles of social responsibility, fair supply of resources and independent monitoring for the protection of workers.

8 AA1000 (or AccountAbility 1000) is a British process standard developed to assess the performance of companies in terms of ethical/social investment and sustainable development.

9 ISO 26000 ‘Guidance on social responsibility’ helps companies to adopt socially responsible behaviours with the involvement of all stakeholders.


Report 2013


The investments in environment

safety and health

In order to render our production processes

even more compliant with sustainable development,

investments and a strategic vision are necessary,

especially in periods during which there is an

economic slump. Aside from the increasing

specificity and redundancy of the laws, the

efficiency and eco-compatibility that these

laws seem to encourage are not always

facilitated in practice.

In this scenario, the corporate investment

policy continues to focus on increasing production

capacity, reducing production costs and, in

general, increasing the quality of the products and

the services, without losing sight of the goal of

containing environmental impacts and guaranteeing

safety in the workplace.

Table 03 and 04 show the investments in

environment and safety within the paper and

converting sectors, made by the Fedrigoni Group

in the last 11 years.

Plants located in Northern Italy Plants located in the Marche area

Environment

% of total invested

Safety

% of total invested

Environment

% of total invested

Safety

% of total invested

2003 13.5 2.3 20.1 1.6

2004 3.8 8.3 39.4 6.9

2005 15.9 3.4 2.6 5.6

2006 39.3 3.6 5.1 4.2

2007 46.8 1.6 16.6 8.2

2008 0.1 1.8 0.2 13.8

2009 3.6 4.8 1.0 3.0

2010 2.0 2.8 1.4 4.4

2011 1.8 4.3 1.7 3.8

2012 7.5 8.9 1.8 1.5

2013 2.1 4.3 1.0 1.0

Tab. 03 Paper Sector

Arconvert SpA Manter SA

Environment

% of total invested

Safety

% of total invested

Environment

% of total invested

Safety

% of total invested

2003 13.8 9.9 – –

2004 7.5 6.0 2.6 1.1

2005 4.2 2.6 3.7 1.7

2006 15.3 20.0 4.2 1.4

2007 10.5 2.7 8.6 6.3

2008 5.8 5.2 5.4 9.8

2009 6.7 1.6 0.6 2.5

2010 2.8 14.6 0.4 2.1

2011 0.9 8.3 0.9 4.6

2012 4.8 2.8 2.4 4.8

2013 1.2 0.4 0.6 1.6

Tab. 04 Converting Sector


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We care about our planet.We actively participate in preserving all natural

resources such as the air, water, the soil, the

forests and wildlife, complying with the underlying

principles of environmental, social, economic and

territorial sustainability in all the areas of the world

that provide us with our raw materials, where our

activities take shape and, lastly, where our products

are distributed.


Report 2013


The final eco-product

The Group offers a wide range of products, whether

standard or produced according to specific

techniques agreed upon with clients.

Every one of our collections of papers has a

unique, inimitable style that draws its inspiration

from the experience and knowledge of our technical

team and its ability to innovate continuously. The

result is an exclusive, highly personalised product

which is also sustainable.

The Group’s production can be divided into three

larger areas, depending upon their functional

characteristics:

• Graphic, print and security paper

For graphics, publishing, packaging, technical

papers, binding, labelling, lining, security paper and

banknotes, papers for scholastic and artistic design,

base papers for adhesives and digital printing.

• Technical products

Security threads with magnetic codes,

multifunctional security threads, holographic

threads and patches, stripes for banknotes,

security paper for checks, telephone cards,

lottery tickets, vouchers and tickets.

• Self-adhesive and casting release products

Front supports, adhesives, casting releases.

All the above products can be grouped into two

large macro-areas of production and use. The first

is the paper-based products area and the second

is the converting area, the corresponding gross

quantitative performances of which over the last

few years are shown in figures 05 and 06.

While confirming the upward trend (+2% in

2013 vs. 2012), production performance was

partially penalized by the closure of the continuous

production plant in Varone, Riva del Garda (Trento),

in July 2013. However, in 2013 gross production in the

European plants had increased by 95% over 2003.

Fig. 05 Gross production – Paper Production Area (Tons/Year)

Marche Area North Area

2005 2006 2007 2008 2009 2010 2011 2012 2013166,924 174,561 190,914 203,078 206,410 200,212 211,293 216,270 237,739

190,549 202,807 212,783 217,785 212,588 216,878 228,227 237,380 224,327

357,473 377,368 403,697 420,863 418,998 417,090 439,520 454,080 462,066

400,000

500,000

300,000

100,000

200,000

Total

Fig. 06 Gross Production – Converting Area – European plants (Tons/Year)

Manter SA Arconvert SpA

2005 2006 2007 2008 2009 2010 2011 2012 201318,292 19,350 22,060 24,000 34,941 36,440 42,352 47,404 48,846

22,687 26,362 28,935 31,197 33,284 37,037 39,728 42,213 42,031

40,979 45,712 50,995 55,197 68,225 73,477 82,080 89,617 90,877

80,000

90,000

60,000

20,000

40,000

Total


Report 2013


ENER

GY

Raw materials and additives

· Coating · Printing · Embossing · Calendering · Lamination

Furthertreatments

Continuous paper machine

Pulppreparation

Sheetingand packaging

WATER

EMISSIONS

WA

ST

E

Finalproduct

The paper manufacturing process

The manufacturing process that provides

the sheet of paper we all know is quite complex

and articulated.

It is from the Paper Machine that, starting

with an appropriately balanced combination of

raw materials dispersed into water (pulp, fillers,

additives), we obtain a sheet which then undergoes

further treatments, from superficial thermal

or mechanical treatments to the application of

coatings, or laminations so as to obtain the

desired functional and qualitative characteristics.

The process can be illustrated as follows:


Report 2013


ENER

GY

Paper/filmsubstrate and additives

Frontal applied on silicon-adhesive support

Coupling

Application of adhesive on siliconed support

Silicon sealing

Finishing

WATER

EMISSIONS

WA

ST

E

Final product

· Rolls · Sheets

The production process for

self-adhesive products

The converting process involves transforming

paper and/or plastic through processes that are

conceptually simple but which are not from the

operating or qualitative point of view. There are

basically two major phases:

• Silicone coating through application of a film

of silicone or protective plastic film on paper.

• Adhesivation through application of the adhesive

to the silicon-coated support and subsequent

transferring to the frontal material (label).

Since many years, the converting plants have

adopted the silicone coating process using raw

materials without solvents (toxic substances such

as hexane, xylol and toluol), in order to drastically

reduce the impact on the environment and protect

the safety and health of the workers.


Report 2013


Environmental impact Paper production Converting Technical specialties

Non fibrous raw materials significant significant not very significant

Fibrous raw materials significant not very significant not very significant

Energy (electric and thermal) significant significant not very significant

Atmospheric emissions significant not very significant not very significant

Water resources – fresh waters significant not very significant irrelevant

Water resources – waste waters significant not very significant irrelevant

Waste significant significant significant

Enviromental noise significant irrelevant irrelevant

Dusts not very significant not very significant not very significant

Odors not very significant irrelevant not very significant

Hazardous substances significant not very significant significant

Soil significant significant not very significant

Tab. 05 Environmental impacts by sectorEnvironmental impact

The various industrial processes involve a series

of environmental and safety impacts, upstream

and downstream of the respective production

phases, to various extents and based on differing

circumstances.

Needless to say, in this case as well, there is

articulated and diversified legislation to comply

with, which regulates the individual phases of the

manufacturing activity. However, Fedrigoni SpA

has always aimed to increase its own added value

over and above the simple requirements of the law,

keeping the effects caused to the ecosystem and

the territory under control: not only insofar as the

direct impacts, but also insofar as the ‘upstream’

impacts, through a targeted selection

of raw materials, equipment, plants and systems

and services supporting them.

For this assessment, the effects related to the

following are always taken under consideration:

• air and atmospheric emissions;

• environmental and safety expectations of

the stakeholders;

• consumption of fresh water and the quality

of waste water;

• energy and fuel consumption;

• raw materials and hazardous substances

(cancerogenous, mutagenic, teratogenic,

biologically hazardous);

• dusts and odours;

• environmental and safety performances

on the part of suppliers;

• waste production;

• environmental and internal noise;

• safety, emergency prevention and hygiene

in the workplace;

• soil, subsoil and groundwaters.

Environmental and safety aspect

of products and processes

The environmental impact of paper production is

very dissimilar to that of converting or the technical

specialities. The differences are summarized in

table 05.


Report 2013


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13.

We care about water.Water is a valuable resource and our Group is

committed to continually improving and safeguarding

water usage.


Report 2013


The science of raw materials in the paper production

The selection of pulp

Pulp is obviously the major component of paper but,

to arrive at the final product, it may be necessary

to add mineral fillers, colouring agents, binders,

additives, etc.

Fedrigoni always purchases raw materials and

ancillary materials that will cause the least impact

to the environment prior to, during and after their

use. They must themselves originate from eco-

sustainable processes and provide guarantees for

the health of those who manipulate them during

production as well as the final users.

Some people associate the paper industry with

the destruction of forests. Unfortunately, this is

a common misconception. And yet, almost all the

wood used to produce pulp originates from forest

thinning, an operation that is necessary to preserve

the health of the forests, as well as from the off cuts

from other industrial sectors that use wood, such as

sawmills. Also, the European Paper industry almost

exclusively uses pulp that originates from forests

that are managed in a sustainable manner. Based on

European Regulation 995/10/EC, from March 2013

companies have to prove that they use wood or

derivatives that have been collected legally in order

to sell products originating from forests within the

European Union.

Fedrigoni SpA has always been sensitive to this

sustainable approach and has therefore strengthened

its commitment with the publication of a specific

corporate policy (which is inspired by the principles

contained in standard FSC®-STD-40-005 / V 2-1 EN,

FSC-PRO-20-001 V1-0 EN and points 1.5 and 1.6.1 of FSC-

STD-40-004 V2-1 EN) which prohibits the use of pulp

originating from:

• illegal logging;

• logging which takes place in areas in which civil

or traditional rights are violated;

• forests in which high values of conservation

(acronym: HVCFs = High Values Conservation Forests)

are threatened by improper forestry management

and maintenance activities;

• areas that have been converted from forests or other

wood ecosystems into annual-type plantations or into

other non-forestry forms of usage;

• forests where genetically modified trees have

been planted.

In proof of this commitment, which is in line with the

market offer and the production requirements of the

individual plants, in the last five years the purchases

of fibrous raw materials followed the path indicated

in table 06.

2010 2011 2012 2013

Reference area

of the plants North Marche North Marche North Marche North Marche

As a percentage of

total pulp procured

FSC® type pulp 66 % 49% 69 % 24% 66% 28% 55% 36%

CONTROLLED FSC® type pulp 23% 33% 22% 54% 26% 57% 40% 56%

INTERNALLY CONTROLLED pulp 11% 18% 9% 22% 8% 15% 5% 8%

NOTEFSC® reference system: The FSC® forestry certification system is the most widely disseminated on an international level and aims to promote correct forest management. The corresponding certifications, which are existent in over 60 countries worldwide, are supported by the major environmental NGOs such as WWF and Greenpeace, thereby assuring users and consumers that the wood or its derivatives used in the manufacturing of the product are compliant with high standards for the protection of the environmental, social and economic features of the forests, thus providing the certainty that the product purchased is an article that is socially and economically ethical.

FSC® type pulp: Pulp certified by FSC® accredited third-party entities according to FM-FSC® or CoC-FSC® systems .

CONTROLLED FSC® type pulp: This is an attribution of the FSC® system, which is regulated by the standard FSC-STD-40-005 / Version 2-1 EN (standard for company evaluation of FSC® controlled wood) which aims to ascertain that while the pulp is not classifiable as FM-FSC® or CoC- FSC® it is of legal origin and compliant with the principles of forest sustainability as these were defined by the FSC® Council.

This attribution is given upon approval by an FSC® accredited third-party certifying entity following verification of compliance with the reference standard. INTERNALLY CONTROLLED pulp: This is an attribution of pulp defined by Fedrigoni SpA pursuant to standard FSC-STD-40-005 / Version 2-1 EN (standard for company evaluation of FSC® controlled wood ), the reliability and correspondence of which is verified annually by the third-party entity that certifies our company’s FSC® system.

Tab. 06 Environmental impacts by sector

Given the type and nature of Fedrigoni products,

it is not possible to use recycled material from

the separate collection of paper waste from public

platforms, but only that which is classified as

medium to high level according to the references

in the European standard UNI–EN 643/2002 (for

standardized qualities of recycled paper and board).

However, even if recycled paper from urban

separate waste collection is not used due to the

qualitative restriction that is connected to the

functional requirements of the final product, our

support for the responsible consumptionof paper

products, including for the protection of forests

and the reduction of carbon emissions

is unquestionable.


Report 2013


Water resources

The second raw material for the production

of paper is water. In this case too, the paper

industry is a victim of another misconception:

that it is an inexhaustible consumer of water.

In 2013, Fedrigoni SpA consumed approximately

29.5 litres of fresh water per kilo of paper produced,

while the consumption of other sectors is very

significantly higher. To produce a kilo of corn

requires the consumption of 900 litres of fresh

water; one kilogram of pork meat requires

4,900 litres9.

The fact that our consumption of water is so low

despite the fact the group produces mainly special,

rather than mass produced papers, makes the fact

even more noteworthy. The following strategies

make this possible:

Fig. 07 Optimization of water consumption

Gross production (Tons) m3 H2O/gross production ton

377.365 403,697 420,253 418,998 421,100 439,520 454,080 462,066

2006 2007 2008 2009 2010 2011 2012 201336.6 33.9 32.3 32.0 31.6 28.9 28.3 29.5

45.0

50.0

35.0

55.0

40.0

30.0

• using substances and preparations that provide

for lower consumption of fresh water as a solvent

or dispersing agent;

• improving industrial programming to reduce

production changes and cleaning of cycles;

• always taking into account the consumption

and taking action when waste occurs;

• using recycled water where possible.

In the last 12 years, even though the production

increased by 63%, Fedrigoni plants have reduced

their specific average consumption of fresh water

by 44%, going from an average value of 52.4 m3

H2O

FRESH/Ton

GROSS PAPER in 2002 to 29,5 m3 H

2O

FRESH/

Ton GROSS PAPER

in 2013, thereby achieving excellence

performance.

10 Sources: FAO, ASSOCARTA, WWW.LIQUIDA.IT

400,000

450,000

350,000

300,000

250,000


Report 2013


Energy resources

After pulp and water, energy is the third basic

component of the production process, but it is the

first in terms of cost. As it can easily be imagined,

a major commitment aimed at saving as well as

protecting the environment is to improve and

decrease energy consumption through research

and application of all the technical, operational and

technological solutions available.

With tens of millions of Euro in investments,

the Fedrigoni Group has equipped its main plants

with turbine-driven cogeneration systems that run

on methane gas, with nominal power of around

35MW, for on-site joint production of electricity and

heat. As a result, some of our plants are practically

autonomous insofar as energy, providing the

following benefits:

• a net saving of up to 40% of primary energy

compared to the consumption that would be

necessary to achieve the same amount of

electric and thermal energy, if they were

generated separately;

• reduction in the electric energy transmission

and distribution losses when it is supplied by large

external generating stations, which are usually

located at a great distance from the plants.

For the environment (with the use of natural gas/

methane as compared to other fuels such as diesel

oil, naphta, coal, etc.):

• higher calorific power;

• no hydrogen sulphides and sulphur dioxides are

released into the atmosphere;

• the emission of ashes and particulates, known also

as fine dusts, is reduced;

• the emission of carbon dioxide (CO2), one of the

six greenhouse gases, is also reduced.

Some of the group’s plants also use small

turbines for the production of hydroelectric energy,

thereby using a renewable resource such as water.

In the last 12 years, the group’s consumption

of electric and thermal energy has dropped 42%,

compared to a production increase of 63%.

Fig. 08 Optimization of total energy consumption

Gross production (Tons) GJ / gross production ton

2006 2007 2008 2009 2010 2011 2012 2013

377,365 403,697 420,253 418,998 417,090 439,520 454,080 462,066

400,000

450,000

350,000

300,000

250,000

10.59 9.34 9.04 8.89 9.22 8.59 8.50 8.57

16.00

14.00

12.00

10.00


Report 2013


Fig. 09 Optimization of gas consumption

Gross production (Tons) std m3 methane / gross production ton

2006 2007 2008 2009 2010 2011 2012 2013

400,000

450,000

350,000

300,000

250,000

296.5 303.2 300.8 298.9 298.5 290.2 285.7 287.1

360.0

340.0

300.0

320.0

377,365 403,697 420,253 418,998 417,090 439,520 454,080 462,066

Proportionally, specific consumption on gross

production dropped as follows: methane by 20%

and thermal energy (steam) by 42%:

Gross production (Tons) Steam tons / gross production ton

Fig. 10 Optimization of steam (thermal energy) consumption

2006 2007 2008 2009 2010 2011 2012 20132.37 2.28 2.19 2,18 2.19 2.09 2.05 2.09

377,365 403,697 420,253 418,998 421,100 439.520 454,080 462,066

400,000

450,000

350,000

300,000

250,000

4.00

3.50

2,50

3.00


Report 2013



Emissions in the Paper production

The major environmental impact associated with

energy production comes from atmospheric

emissions, particularly carbon dioxide (CO2), which

is the most common greenhouse gas10 contributing

to global warming.

The European Union has endorsed the Kyoto

Protocol and has proved to be far more committed

than other industrial powers (except for Australia

and New Zealand) with the European ‘20-20-20’

law which, among other things, aims to cut carbon

dioxide emissions 20% by 2020.

The Kyoto Protocol provided for the EU countries

an overall reduction in greenhouse gas emissions

of 8% by the end of 2012, compared to the figures

as they stood in 1990. The objective was then

distributed among the member countries, each

of which was assigned a specific national target

for the reduction of CO2. For Italy, this target was

set at –6.5%.

Lacking a strategy able to encompass all the

CO2 generating entities, from 01.01.2005 Italy

placed the burden of reaching the entire national

target on approximately 1,300 industrial plants

(representing the 71% of the overall national

production capacity) not including the road

transport, civilian, residential and agricultural

uses sectors. The sectors involved are:

• the energy industry;

• the ferrous metals industry;

• the minerals industry;

• the glass industry;

• the ceramics industry;

• the paper industry for productions >20 tons/day.

Aviation has been included in the EU ETS since

2012. Once again, however, the difference in

competitiveness between European operators in

the EU ETS and non-European operators, the latter

not being subject to comparable environmental

constraints for combating climate change, has

been disregarded. In 2013, the EU ETS was further

expanded to include the production of aluminium,

quicklime, nitric acid, hydrogen, and sodium

carbonate and bicarbonate, and the facilities

that deal with the capture, transportation and

storage of CO2.

ETS Directive no. 2003/87/CE and subsequent

amendments provides that from January 1, 2005,

the facilities of the European Union listed above

cannot operate without an authorization to emit

greenhouse gases.

All authorized facilities must then monitor

their emissions annually, communicate them after

validation by an accredited body, and offset them

with European emission allowances (European Union

Allowances, EUA, and European Union Aviation

Allowances, EUAA – equivalent to 1 ton of CO2

equivalent) that can be purchased and/or sold.

Albeit to a limited extent (Article 11 bis of the

ETS Directive – Regulation no. 550/2011 of the

Commission), the facilities may, for this purpose,

also use non – European emission credits from

projects carried out under the project-based

mechanisms of the Kyoto Protocol (Clean

Development Mechanism – CDM – and Joint

Implementation – JI). Therefore, facility operators

may choose between investing to reduce emissions

- by introducing technologies with low carbon

content or through energy efficiency measures – or

alternatively buying CO2 quotas. In essence, the

EU ETS is a ‘Cap & Trade’ system because it sets a

maximum limit (‘cap’) on the total level of emissions

allowed for all parties bound by the system, but 11 Greenhouse gases included in the Kyoto protocol : CO

2, CH

4, N

2O, HFC,

PFC and SF6.

12 The EU fears the risk of so-called ‘Carbon Leakage’ (risk of relocation) for certain industries such as the paper sector. This consists in the possibility of being relocated outside the EU because forced to face unfair competition from non-EU countries that are not subject to similar restrictions on carbon emissions. As a result, it was determined that facilities in these sectors will be allowed to receive free allowances up to the established benchmark level for 2020, calculated on the average return of 10% of the plants considered most efficient by the European Commission.

Plant Auth. No.

Tons of actual CO2

emitted and to be

returned on the ETS

National Register by

30/04/2014

Min. Res. no. 29/2013

dated 20.12.2013

Definitive allowances

allocated by the

ministry

Variation%

Allocated

for free vs.

emitted

Arco (TN) 252 48,771 33,100 – 15,671

Varone (TN) 259 21,911 16,919 – 4,992

Verona (VR) 1.280 51,925 25,296 – 26,629

Fabriano (AN) 560 104,827 60,053 – 44,774

Pioraco (MC) 566 23,580 17,566 – 6,014

Total CO2

emissions

authorized – 251,014 152,934 – 98,080

Tab. 07 Assignment of CO2 emission shares

it also allows participants to buy and sell on the

market CO2 emission rights (‘allowances’) according

to their needs, subject to a predetermined limit.

The most important action in 2013 was the start

of the third phase of implementation of the scheme,

destined to end in 2020, which establishes as a

general principle that EU Member States should

allocate allowances to operators for consideration

through public auctions in Europe.

Manufacturing plants, particularly those exposed

to the risk of relocation due to the cost of carbon

(carbon leakage11), receive a portion of allowances

(about 1/3 of requirements) free of charge based on

benchmarks generally defined by product. These are

harmonized at European level and quantified based

on the performance of 10% of the most efficient

facilities for each industrial sector.

These facilities can still buy and sell allowances

among themselves, through private arrangements

or by contacting the secondary carbon market.

The allowances are entered in the European Union's

Single Registry, an electronic database that keeps

track of all the allowances' changes of ownership

and allows operators to offset their emissions on

an annual basis, returning their allowances to the

Member States.

The total quantity of allowances in circulation in

the System is defined at European level considering

the European Union objectives as of 2020 (-20%

emissions over 1990). In 2013, the total number of

allowances in circulation amounted to approximately

2 bn., and this will be reduced each year until 2020,

by a linear factor equal to 1.74% of the average

annual total quantity issued by Member States

between 2008 and 2012, amounting to more than

38 million allowances. The situation of Fedrigoni SpA

for the year 2013 is represented in table 07.


Report 2013


Fig. 11 Reduction in CO2 emissions

Gross production (Tons) kg CO2 / gross production ton

2006 2007 2008 2009 2010 2011 2012 2013

400,000

450,000

350,000

300,000

250,000

451.3 598 593 589 588 572 563 566

800.0

700.0

500.0

600.0

377,365 403,697 420,253 418,998 421,100 439,520 454,080 462,066

Most Fedrigoni plants are equipped with digital

monitoring instruments for continuous monitoring,

with automatic back up of data, of the CO2 and NO

x

emissions and the combustion ratio. This also allows

obtaining constant information on the efficiency of the

combustion process and the mitigation system.

For the two plants in the Province of Trento,

pursuant to the provisions of the Integrated

Environmental Authorization, these instruments are

connected remotely with the local Environmental

Protection Authority, which is thus informed

about the quality and quantity of the atmospheric

emissions in real time.

In the last 12 years, CO2 emissions dropped by

28% an NOx emissions by 46% while production

increased by 63%.

NOTEIn March 2007, the new cogeneration plant was deployed in the Verona plant, which rendered it practically autonomous in terms of energy but which obviously resulted in increased

Fig. 12 Reduction in NOx emissions

Gross production (Tons) kg NOx/ gross production ton

377,365 403,697 420,253 418,998 421,100 439,520 454,080 462,066

2006 2007 2008 2009 2010 2011 2012 2013

400,000

450,000

350,000

300,000

250,000

0.038 0.046 0.044 0.043 0.045 0.044 0.043 0.044

0.080

0.060

0.020

0.040

consumption of natural gas/methane at the site and therefore a proportionally higher quantity of substances emitted into the atmosphere.


Report 2013


Water purification

Once process waters have fulfilled their function,

with the exception of the portion that is pumped

back into the cycle, they must be treated before

they can be returned to the receiving water body

in full compliance with the chemical-physical and

biological quality limits set by law. The water

purification plants are shown in table 08.

These plants play a fundamental role, but are

even more effective when intervention takes place

preventively on the upstream portion of the process

by reducing the input of pollutants, following certain

simple principles:

• daily analytical checks on the quality of the water

in the upstream portion of the water purification

process so as to intervene preventively where

necessary;

Fedrigoni SpA Type/Technique of water purification

Arco plant Primary chemical – physical + biological

Varone plant Primary chemical – physical

Verona plant Primary chemical – physical

Fabriano plant Primary chemical – physical + biological

Pioraco plant Primary chemical – physical

Tab. 08 Type of water purification plants for each plant

NOTEPrimary chemical-physical plant: uses a process of coagulation and subsequent sedimentation (the sediment forms the residual sludge) to remove pollutants Secondary biological plant: uses the action of microorganisms to remove the soluble biological carbon portion that the chemical-physical treatment has not succeeded in removing (sludge is also formed as a result of this process).

• careful selection of raw and ancillary materials to

minimize the formation of polluting loads on the

process water;

• improvement of the retention of fibres, additives,

and fillers on the paper;

• closure of the cycles, in line with the types of

paper to be produced.

In this manner, year after year, significant

improvements have been achieved. Proof of this is

the constant decrease in the COD13 which dropped

from 5.8 Kg COD/Gross Ton in 2002 to 2.1 Kg COD/

Gross Ton in 2013, a 64% decrease.

Similarly, considering the COD as an absolute

annual average value, we see that it has dropped by

20% from 94 mg/lt in 2002 to 83 mg/lt in 2013 largely

confirming compliance with the limits set by law13.

13 COD (Chemical Oxygen Demand): the equivalent quantity of oxygen consumed by an oxidising compound under specific laboratory conditions. This provides an indication of the quantity of organic oxidising polluting substances in water.

Fig. 13 Improvement of waste water quality- COD

Gross production (Tons) Kg COD / gross production ton

2006 2007 2008 2009 2010 2011 2012 2013

377,365 403,697 420,253 418,998 421,100 439,520 454,080 462,066

3.1 2.5 2.5 2.3 2.7 2.5 2.1 2.1

400,000

450,000

350,000

300,000

250,000

6.0

5.0

3.0

4.0


Report 2013


Gross production (Tons) mg COD / gross production ton

Fig. 14 Improvement of waste water characteristics – Absolute average COD

377,365 403,697 420,253 418,998 421,100 439,520 454,080 462,066

2006 2007 2008 2009 2010 2011 2012 2013

400,000

350,000

300,000

250,000

75 81 73 72 87 93 75 83

100

90

80

450,000

Residual sludge

In paper production, most of the waste generated

(63%) is in the form of residual sludge. It derives

from water purification processes carried out with

chemical–physical and biological treatments. It

consists of 50-60% water, while the residual dried

portion is mainly pulp fibre with traces of mineral

fillers, binders, chemical additives.

This sludge is certainly biodegradable, does

not contain toxic or hazardous substances and

has a heavy metal content which is practically nil.

However, the sludge unfortunately cannot be used

as a recovered fibre in the high quality production

processes used by Fedrigoni, which focuses on

the production of special papers. Therefore, it is

currently delivered to third-party operators who are

authorized to dispose of waste.

From this point of view, reducing the production

of residual sludge is a benefit to the environment

as well as the company budget. Since the lesser

the pollutants to be purified, the lesser the sludge

Gross production (Tons) Kg sludge as measured / gross production ton

Fig. 15 Decreased production of sludge

2006 2007 2008 2009 2010 2011 2012 2013

400,000

350,000

300,000

250,000

47.8 33.7 35.3 36.0 36.8 35.0 32.5 32.3

40.0

60.0

50.0

377,365 403,697 420,253 418,998 421,100 439,520 454,080 462,066

450,000


Report 2013


Gross production (Tons) Kg TQ / gross production ton

Fig. 16 Total reduction in the production of overall waste (sludge + other)

377,365 403,697 420,253 418,998 421,100 439,520 454,080 462,066

70.2 50.9 48.1 49.3 52.4 52.2 53.6 51.2

90.0

80.0

70.0

60.0

50.0

40.0

2006 2007 2008 2009 2010 2011 2012 2013

400,000

450,000

350,000

300,000

250,000

created, Fedrigoni has invested significantly in this

area. As a result, in the last 12 years, the residual

sludge has decreased by 46%. In regard to the

total production of waste (which is the sum of the

residual sludge and all other forms of waste) the

overall decrease in the last 12 years, expressed as a

specific proportion of gross production, was 36%.

Noise pollution

In any industry, noise pollution is a significant factor

to the extent that it could also be considered as a

‘waste’ from the production process. Noise pollution

includes the usual external noise which can disturb

the homes or workplaces near the plant as well

as the noise inside the plant, which can potentially

interfere with the health or well being of the

workers. In both cases, if the noise is not kept

under control and regulated, the problem may

become significant.

The Fedrigoni Group is committed to complying

with the relevant regulations, but also wishes to

avoid causing a disturbance to the communities

surrounding its facilities. To this end, it carries out

the following checks:

• Periodic phonometric measurements carried

out by authorized third-party entities, often at

intervals in excess of those established by the law.

The checks include inspections during the day and

the night both inside as well as around the borders

of the area to monitor compliance with the

emission and injection values, using as a reference

the values set forth in the acoustic zoning plans

adopted by the respective municipalities or, in

the locations in which these have not yet been

adopted, the applicable legislation, taking into

account the classification of the unit, such as the

Law no. 447 of 26 October 1995 and the Ministerial

Decree dated 14 November 1997, etc.

• Preventive environmental and safety analysis

that takes place starting from the design phase

of the project for any investment involving the

structures, the plants and the equipment, which

also requires determination of the potential

acoustic impact that can result in order to identify

the best solutions as early as the design phase to

eliminate or reduce the effects to the minimum

possible level.

The checks that took place during 2013

consistently indicated the company's compliance

with the law.


Report 2013


14 REACH : Registration, Evaluation and Authorisation of Chemicals

The soil

The soil is not in direct functional contact with the

paper industry, but requires attention nonetheless.

It suffices to consider the movement and stocking

of certain materials, both liquids and solids,

which, if dispersed, would cause damage to the

environment and possibly the groundwaters. To this

end, Fedrigoni plants are equipped with dedicated

containment tanks to preclude this from occurring.

The areas covered by the plants (partially, also

the uncovered areas), are structured in such a

way as to create a large containment tank to avoid

dispersion that could seep into the sewage system

or the rain water tanks, instead of the treatment

plants. The workers are aware of the intervention

procedures: periodically they participate in drills in

which accidental dispersion is simulated.

Pursuant to regional laws, the Verona and Bollate

(province of Milan) plants were equipped with the

appropriate first rain water treatment systems used

for street runoffs in 2012.

Hazardous substances

In the complex paper manufacturing process,

but in particular in that of the security elements,

there may be cases where the use of toxic

substances is necessary: a very limited number of

chemical preparations are used only because no

alternative products are available on the market.

At the operating level, the company uses a

system of closed circuits to avoid contact with

the operator or dispersion into the environment.

However, when a solution at the plant level is not

feasible, the employees are carefully trained in

order to share their knowledge and the technical

solutions for handling hazardous substances.

These chemical preparations are governed

by the European Regulation no. 1907/2006 of 18

December 2006 and subsequent amendments,

which refers to the registration, evaluation,

authorization and limitation of chemicals, also

known by the acronym R.E.A.CH.14.

Fedrigoni does not employ any substance

or preparation included in Annex XIV of REACH,

i.e. those substances considered extremely

problematic and requiring authorization by the

European Commission for specific uses, or in Annex

XIV, which contains a ‘Candidate List’ of substances

published by ECHA (European Chemicals

Agency). The latter lists ‘Substances of Very High

Concern’ (SVHC) or those with very serious and

in some cases irreversible effects on man and the

environment, and is periodically updated.

Among the hazardous substances we must

include asbestos which can still be found in a few

older industrial facilities. The company carries out

periodic checks, more frequently than required by

the law, to monitor integrity and avoid dispersion

of the fibres into the air. The checks, which are

assigned to specialized companies, use the

two most reliable techniques: the tear test and

the M.O.C.F. (Microscope in Phase Contrast),

determining the quantity and quality of the fibres

dispersed into the air. To date, the checks have

always been negative. However, the company has

a multiple year plan for gradual removal of this

material.


Report 2013


The science of raw materials for converting

Materials

The materials used in the manufacturing processes

typically used in converting are the paper, used both

as a main material as well as a supporting material,

the adhesives in aqueous emulsion, silicones with

their additives (polysiloxanes) and solvents. The

latter are used only for cleaning the cycles, when

production changes.

The environmental performance of Fedrigoni

converting processes is proven by:

• the use of selected paper which is sourced from

suppliers that follow and apply the principles of

forest sustainability and who use eco-compatible

raw materials;

• extended and exclusive application of the

‘ solventless’ system and the use of silicone without

solvents, while preserving the same finished

product functionality and quality.

In this manner, solvents such as hexane, ethyl

acetate and xylol have been eliminated from the

production cycle, with three main benefits:

• improvement of the environmental and sanitary

conditions in the workplace;

• liberation from an entire series of environmental

problems related to the emission into the

atmosphere of the residual portion of the solvent,

though through the use of mitigation systems such

as post–combustors;

• significant energy savings with a positive,

albeit indirect, effect for the environment.

Due to the lack of alternative solutions, the use

of solvents is limited to the washing and cleaning

of cycles during production changes. Naturally,

the residue of each of these cleaning operations

is collected in special containers so that it can

be disposed externally as special waste through

authorised companies.

Energy for converting

Electric and thermal energy are significant factors

in the converting sector as well, but to a significantly

lesser extent than in paper manufacturing.

Electricity is purchased from external suppliers

and the company cannot intervene directly on their

environmental performances. Therefore, Fedrigoni

has invested and continues to invest in the adoption

of more energy-efficient equipment.

Thermal energy, which is a prerequisite for the

polymerization phases, is generated on site by

systems that run on natural gas but which, given the

levels of power used, do not significantly affect the

environment in terms of CO2 emissions.

Unlike the paper industry, the converting

industry is not subject to the provisions of European

Directive no. 2003/87/EC (the Emission Trading

Directive).

In the last nine years, the Fedrigoni Group has

increased production in the converting sector by

78%, while electric and thermal energy consumption

has dropped by 37%.

Fig. 17 Optimization of total energy consumption (converting)

Gross production (Tons) GJ / gross production ton

2006 2007 2008 2009 2010 2011 2012 2013

56,478 62,668 68,578 74,969 76,751 82,669 89,617 90,877

0.53 0.58 0.52 0.52 0.31 0.31 0.30 0.31

0.20

0.30

0.40

0.50

0.60

0.80

0.70

90,000

80,000

70,000

60,000

50,000


Report 2013


Water for converting

In converting, water is not as essential as it is in

paper production. It is used exclusively for:

• washing of the cycles;

• supplying the cooling and conditioning circuits;

• generating steam.

The quantity used is modest, but the company

nevertheless takes care to optimize consumption,

despite the technical difficulties involved. The

saving procedures cover areas from production

scheduling with reduction of the number of washing

interventions in the plants, to fewer cycles of

cooling and conditioning water operating on

threshold waste temperatures, up to the more

mundane corrections such as avoiding waste from

hose and faucets left running.

Between 2002 and 2013, water consumption

increased by only 22 percent, despite the steep 78%

increase in gross production in the converting area.

The converting plants are not equipped with their

own purifier, given the slight quantities of water

to be treated. Uniquely for Arconvert SpA, which

neighbours with the Arco (province of Trento) paper

mill, the waters are conveyed to the latter plant’s

chemical-physical and biological purifier, so that

both plants share responsibility in terms of waste

disposal authorization. On the other hand, Manter

SA carries out a clarification pre-treatment using

ferric chloride, which is then conveyed externally to

be treated as waste.

Fig. 18 Optimisation of water consumption

Gross production (Tons) m3 H20 fresh / gross production ton

56,478 62,668 68,578 74,969 76,751 82,669 89,617 90,877

2006 2007 2008 2009 2010 2011 2012 201311.3 10.0 8.8 8.2 9.9 10.1 11.0 11.6

90,000

7

8

9

10

11

1280,000

70,000

60,000

50,000


Report 2013


Gross production (Tons) Kg CO2 / gross production ton

Fig. 19 Reduction in CO2 emissions

56,478 62,668 68,578 74,969 76,751 82,669 89,617 90,877

2006 2007 2008 2009 2010 2011 2012 201387.5 89.4 87.9 72.6 71.0 62.1 58.5 51.1


Emissions in the converting

Since the ‘solventless’ technologies were introduced

in 1995, emissions of VOSs (Volatile Organic

Substances) into the atmosphere have decreased

to minimum levels.

Unlike the paper industry, the converting industry

is not subject to the previsions of European Directive

n. 2003/87/EC (the Emission Trading Directive).

However, the Company has made efforts to reduce

CO2 where technologically possible.In the converting

area, these emissions originate exclusively from the

thermal energy generation plants.

By optimizing the combustion ratios, constantly

carrying out maintenance and opting for the

technical solutions that consume the least energy, in

the last nine years Fedrigoni has cut carbon dioxide

emissions by 42% in the converting operations.

90,000

80,000

70,000

60,000

50,000 60

70

80

90

100


Report 2013


Waste from converting

The production and management of waste are

entirely similar to those in the paper mills, except

that in this sector no residual sludge is produced

since there is no water purification plant.

Therefore, in this case too while encouraging

inasmuch as possible the recovery of packaging,

iron, wood, plastic, paper, etc., the waste sorting

is implemented with a goal of increasing the

awareness of the staff and requesting the various

suppliers to significantly reduce the use of packaging

in their deliveries.

The few types of waste which are classified as

hazardous (washing solutions containing solvents,

exhaust oils, rags saturated with mineral oil and/

Gross production (Tons) Waste Kg / gross production ton

Fig. 20 Overall decrease of waste production

56,478 62,668 68,578 74,969 76,751 82,669 89,617 90,877

2006 2007 2008 2009 2010 2011 2012 2013109.8 110.6 87.4 72.8 75.3 62.7 58.8 63.6

or lubricants, neon tubes, batteries, etc.) are

collected and stored prior to being sent outside the

plant in dedicated areas equipped with appropriate

containment protective devices to prevent possible

leaks or dispersions into the soil.

In addition to the containment tanks, practically

all the uncovered surfaces of the plants are

waterproofed, paved or covered with cement,

in order to protect the soil against any possible

contamination through the accidental dispersion

of liquid substances.

The result is that in 2013 as well, the production

of waste in terms of the specific proportion of gross

production is 40% lower than it was 9 years ago.

90,000

80,000

70,000

60,000

50,000

40

60

80

100

120


Report 2013


La b

elle

zza

com

inci

a co

n un

cam

biam

ento

| To

p Aw

ard

2013

.

We care about the people who work with us.The health and safety of our employees is

an absolute priority for us. Every year our

comprehensive health and safety programme

involves hundreds of our workers in all areas

of activity, enabling us to reduce frequency and

severity rates of accidents in the workplace

for all the companies of the group.


Report 2013


Health and safety performance in the workplace

Premessa

Given the delicacy of this issue and the complexity

of the legal references governing it, there is no

doubt that ensuring ‘health and safety’ in the

workplace is an activity that becomes more complex

over time. Currently, an interdisciplinary approach

is required, where every individual must interact

with all the other parts, addressing the aspects

concerning safety and health in the workplace with

synergy and coordination, identifying the correct

balance between operating and organisational tasks,

health and sanitary requirements, plant, engineering,

regulation requirements, etc.

When expressed in this manner the issue seems

to be obvious and self evident, however reality is

not as simple as that, because safety continues to

remain an individual ‘culture issue.’ It is generally

believed that safety is not a personal issue, but

one that concerns only those persons who are

professionally dedicated to it. There is no doubt

that as long as such an attitude persists among

individuals it will be difficult to achieve an advanced

level of safety for everyone.

To overcome this basic pitfall, to the extent of

its area of competence and only insofar as the

limits allowed by the law, Fedrigoni SpA has had an

ongoing commitment for many years now to:

• involve and make aware the individuals through

information and training of all its workers, including

with the objective to reach solutions which are

shared in the areas of prevention and protection;

• manage the operational, organisational and

managerial aspects of the work based not

only on the laws but also on the principles

of good practices;

• create the right environmental conditions in the

workplace for improving not only the safety of

the workers, but also their psychological and

physical wellbeing;

• always be clear insofar as the roles and

responsibilities which protect from any

interference or overlapping of functions;

• comply with the technical, regulatory and legal

standards established for equipment, plants,

machinery, workplaces and chemical, physical

and biological agents;

• meticulously assess the risks for each individual

unit, thereby also setting the protection measures;

• periodically carry out internal audits aimed at

checking the application and effectiveness of the

procedures we have adopted.

As a result of this activity, the Italian units, as

well as the foreign units according to the standards

applicable locally, were already compliant, before

its implementation, with the provisions of Legislative

Decree no. 626/1994 and subsequent amendments,

which was then abrogated and replaced by the

Consolidated Act on Health and Safety in the

Workplace (Legislative Decree no. 81 of 9 April

2008 and subsequent amendments), thanks to the

operating models for health which had already been

adopted. Additionally to the safety management

system based on international standard BSI OHSAS

18001:2007, the Organisational Model indicated

in Legislative Decree no. 231 of 8 June 2001 and

subsequent amendments has also been adopted.

However, in order also to maximize the effect

of our efforts, the company aims to:

• prevent and reduce the number of accidents

in the workplace, in terms both of frequency

and of gravity;

• reduce the costs of ‘non-safety,’ leading to benefits

not only for us, but also for the institutions

responsible for paying the costs of the National

Health Service, the insurance premiums levied by

the INAIL, disability pensions, etc.;

• ensure compliance with legal requirements as

rapidly and congruously as possible;

• directly involve the various departments,

determining and listing their individual

responsibilities and roles in terms of safety.

• improve the work environment, including from an

organisational point of view;

• improve awareness and motivation of the staff,

while also optimising relations with trade union

representatives, especially those responsible for

safety (Italian acronym: RLS);

• increase the professionalism, motivation and

attention of employees insofar as the issue

of safety through specific training, instruction

and education;

• strengthen our external image in terms of

credibility and reliability among third parties;

• ensure transparency in our relations with the

Control Authorities and the Supervisory Bodies;

• increase the factors of competitiveness since

assessments of company safety management are

gaining more and more ground as indicators of

company stability and competitiveness, similarly

to what is occurring in the environmental and

social spheres.

Statistical analysis and evaluation

of the causes of accidents

Prior to reporting on the corporate performances,

we believe it is significant to define ‘work related

accident’, as this is also important for the issues

that will follow.

There are currently only two regulatory

definitions which are overlapping.

• Law no. 1124 of 30 June 1965: any harmful event

that affects the ability to work which is caused

violently on the job.

• Standard UNI 7249 point 2.1.2.: any harmful event

that takes place for a violent cause, on the job,

which leads to the death or permanent absolute or

partial inability to work or to a temporary absolute

inability to work for a period greater than the

remaining part of the working day or shift during

which it took place.

The meaning of ‘violent cause’ has been

recently set forth in a large number of texts

and laws. Objectively speaking, this condition is

often interpreted incorrectly since any harmful

event or situation occurring to a worker on the

job is systematically classified as an accident,

even if there has been no ‘violent cause’. This

consideration is significant, as it causes the

accident performance indicators to fluctuate wildly

without providing employers with effective tools for

intervention.

Furthermore, the Italian law in particular, also

includes accidents that occur when travelling to and

from work in addition to the accidents that occur

on the job15, including accidents that may occur

when travelling from home to work and vice versa,

or from the workplace to another workplace, in

the case of workers who are employed by several

employers.

15 Legal note regarding the classification of accidents: events which are due to traffic risks but which take place during working time in direct or indirect relation to the carrying out of the work itself are not considered as accidents that take place during travelling time to and from work and are therefore treated as accidents on the job.


Report 2013


AD – Average Duration number of days of inability to work recognised by INAIL in the period

Represents the total number of

working days lost due to accidents

in the working period over a given

time span

number of accidents in the period

FI – Frequency Index number of accidents in the period x 1,000,000

Identifies, over a given time span,

the frequency of accidents and

represents the total number of

accidents per one million hours

total hours worked (blue collar +white collar) in the period

GI – Gravity Index number of days of inability to work during the period x 1,000

Identifies the intensity of the

accident and represents the total

number of accidents per 1,000

hours worked

total hours worked (blue collar +white collar) in the period

NOTES FOR CALCULATION• A period is one month or one year;• The calculation is based only on

those accidents recognised by INAIL as > 3 days;

• Total hours worked is construed as the hours worked by all workers (blue collars and white collars) for whom obligatory insurance is provided;

• For determination of the gravity index (GI), in addition to the two previous notes, the calculation must also include the accidents that have taken place in periods prior to the one under consideration, in correspondence to the days of absence per accident as well as days of absence for relapses.

Tab. 09 Accident performance

Taking the effects of this approach into

account, statistical analysis of accidents

remains the only tool available for monitoring

prevention performance. However, in order to

be effective, it must be based on recognised and

shared accounting references so that the data is

guaranteed to be objective and comparable. Thus,

in our company as well, the statistical calculations

are updated on a monthly basis pursuant to the

indications of Standard UNI 7249, which defines the

following as the main indicators of performance.

However, due to the extension of the meaning

of accident to include an event that affects the

health and integrity of the workers on the job,

these indicators must be interpreted with caution

and above all, never as figures that represent a

specific point in time because, in contrast to similar

statistical references, such as those referring to

the Environment or Quality, in which a company is

able to intervene and the performance values for

which are calculated reliably, in the case of Safety a

company’s performance can often be represented

incoherently. Even just a few accidents taking place

while travelling increase the values, even when

they occur outside of the Company's business and

intervention scope. In 2013, for example, this type of

accidents accounted for more than 20% of the total.

Moreover, based on the information provided by

INAIL and the above mentioned standard UNI 7249,

the algorithms used for the calculations take into

account accidents that occur during travelling and

also any relapses that may occur after a worker has

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 VAR.%

2013

v/s

2003

Total

accidents187 189 182 181 193 183 133 166 128 108 114 – 39

AD – Average

Duration20.70 20.50 19.90 19.90 20.80 19.90 21.10 27.60 27.40 33.50 33.80 +63

IF – Frequency

Index74.60 73.00 70.20 64.70 69.40 65.80 48.70 60.30 45.90 37.60 40.50 – 46

IG – Gravity

Index1.55 1.50 1.40 1.29 1.45 1.31 1.02 1.67 1.26 1.26 1.37 – 12

Tab. 10 Total Group performance (Paper mills + Converting + Technical products)

returned to work. All of these are issues in which

the company has very little power to intervene with

corrective or preventive measures.

Therefore, given the inevitable quantitative

fluctuations in the accident statistics, the only

system which is valid is the one that takes into

account the performance over several years,

rather than short periods such as several months

or a single year. Used in this way, statistics can help

us balance out and compensate for situations like

the ones just described, distributing the evaluations

over the longer term in a way that is both more

reliable and certainly more representative of the

real trend in accidents.

The values of performance

In contrast to the previous dissertation on

environment, in which the issues were presented

separately according to the various processes

applied, for the issues of health and safety in the

workplace the presentation will be in an aggregated

form, listing the values attributed to performances

as they relate to the companies belonging to the

Group (paper production + converting + technical

products).

This choice is advisable because the specific

nature of the different technologies used exerts

no influence in general on the company's safety

management and performances, although we do

acknowledge that different levels of risk apply to

different operating contexts. The performance

indexes for the entire Group for 2003 to 2013

are shown in table 10.


Report 2013


Fig. 21 Average duration of accidents

Total hours worked Number of days unable to work / accident

The performance of the three indicators over

the last 8 years is portrayed in the graph below:

2006 2007 2008 2009 2010 2011 2012 2013

2,795,610 2,780,031 2,781,934 2,733,235 2,752,388 2,785,989 2,869,059 2,816,324

2,800,000

2,900,000

2,700,000

2,600,000

2,500,000

19.9 20.8 19.9 21.1 27.6 27.4 33.5 33.8

22.0

26.0

24.0

28.0

30.0

32.0

20.0

Fig. 22 Accident frequency index

Total hours worked Number of accidents / hours worked

2,800,000

2,900,000

2,700,000

2,600,000

2,500,000

2,795,610 2,780,031 2,781,934 2,733,235 2,752,388 2,785,989 2,869,059 2,816,324

2006 2007 2008 2009 2010 2011 2012 201364.7 69.4 65.8 48.7 60.3 45.9 37.6 40.5

80

70

60

50

40


Report 2013


Fig. 23 Accident gravity index

Total hours worked Number of accidents / hours worked

2,795,610 2,780,031 2,781,934 2,733,235 2,752,388 2,785,989 2,869,059 2,816,324

2006 2007 2008 2009 2010 2011 2012 20131.29 1.45 1.31 1.02 1.67 1.26 1.26 1.37

1.50

1.40

1.30

1.20

1.10

1.00

1.60

1.70

2,800,000

2,900,000

2,700,000

2,600,000

2,500,000

Production of paper

and technical articles

In tables 11 and 12 the data provided represents

the performances of the Arco (province of Trento),

Varone di Riva del Garda (province of Trento),

Verona (province of Verona), Fabriano (province

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 VAR.%

2013 v/s

2003

Total

accidents45 42 59 57 62 54 45 60 37 36 27 – 40

AD – Average

Duration13.80 10.00 11.50 13.20 16.90 17.20 10.40 23.70 23.50 38.60 30.10 +118

FI – Frequency

Index96.30 85.10 112.90 106.80 114.3 96.30 77.60 98.90 57.90 54.10 40.20 – 58

GI – Gravity

Index1.33 0.85 1.30 1.410 1.93 1.66 0.81 2.34 1.36 2.30 1.21 – 9

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 VAR.%

2013 v/s

2003

Total

accidents142 147 123 124 131 129 88 106 91 72 84 – 41

AD – Average

Duration22.90 23.60 24.00 22.90 22.70 21.00 26.70 30.20 29.40 30.10 36.60 +60

FI – Frequency

Index69.60 70.20 59.40 54.80 58.50 58.10 40.40 46.60 40.50 32.70 37.30 – 46

GI – Gravity

Index1.60 1.65 1.43 1.26 1.33 1.22 1.08 1.48 1.19 0.98 1.37 – 14

Tab. 12 Performances for Converting (Arconvert SpA and Manter SA).

Tab. 11 Performance for paper and Security sector (Arco, Bollate, Castelraimondo,

Fabriano, Pioraco, Rocchetta di Fabriano, Varone di Riva del Garda e Verona plants).

of Ancona), Pioraco (province of Macerata),

Castelraimondo (province of Macerata), Rocchetta

di Fabriano (province of Ancona) and Bollate

(province of Milan) plants.


Report 2013


Training and information

Following these guidelines, during the first half

of 2013 a series of training activities on health

and safety in the workplace was completed, in

accordance with an agreement between the State

and the regions dated 21/12/2011, implementing

Paragraph 2 of Art. 37 (training of workers,

managers and supervisors) and Paragraph 2

of Art. 34 (training of employers and health & safety

managers) of Italian Legislative Decree no. 81/08

and subsequent amendments. These activities

involved the Company's workers, employees

and directors.

In the wake of this obligation, other training

activities have been conducted on various specific

issues aimed at clearly identified categories of

employees (use of forklifts, work at high levels, work

on live parts, handling of chemical substances, use

of overhead travelling cranes, etc.).

Particularly worthy of note is a training activity

dedicated to official and de facto supervisors in

charge of the plants in Arco and Varone, in the

province of Trento, which involved all managerial

staff and heads. Training focused on the role of the

de facto supervisor, his/her obligations and duties

as the Head for the integrated health and safety

service, illustrating the contents and sanctioning

provisions foreseen by Italian Legislative Decree

no. 231/01 and subsequent amendments in terms

of environment, safety and health. Said Decree

governs the administrative liability of legal persons,

companies and associations even without legal

personality.

The number of hours of training provided

individually to employees over the year, including

blue collar and white collar staff and management,

over the last eleven years is shown below:

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

No. hours/employee/year 5.8 5.6 5.1 6.6 3.6 3.3 6.0 5.4 5.0 10.5 13.4

Tab. 13 Training hours per employee

2,800,000

2,900,000

2,700,000

2,600,000

2,500,000

Fig. 24 Individual specific training index

Total hours worked Number of hours training / worked / year)

2,795,610 2,780,031 2,781,934 2,733,235 2,752,388 2,785,989 2,869,059 2,816,324

2006 2007 2008 2009 2010 2011 2012 20136.6 3.6 3.3 6.0 5.4 8.4 10.5 13.4

10

12

8

6

4

2

Printed on

Cover

Savile Row Tweed Camel 100 gsm

Sirio Color Sabbia, triplex board paper 700 gsm

Endpaper

Tintoretto Ceylon Paprika 140 gsm

Book block

Symbol Tatami Ivory 135 gsm

Tintoretto Stucco Gesso 120 gsm

Oikos Extra White 150 gsm

All the papers used in this report are

FSC – C015523

Photographs

Martino Lombezzi (Contrasto)

Pp. 6, 15, 23, 28, 43

Pitis

P. 17

Alessio Macrì

P. 19

Daniele Mendini

Pp. 27, 34, 65, 110-111, 120-121, 150-151

Published in 2014

© Fedrigoni SpA

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