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SustainabilityReport
2016
9th edition
By Florim Ceramiche spaFinancial Department - supervision
Communications Department - editorial coordinationOur thanks to all contributing staff members
Fiorano Modenese (MO) - ITALY May 2017
Contents
5
6
8
9
9
10
11
13
13
14
14
15
16
17
18
18
19
Letter to Stakeholders
Our Sustainability Report
MADE IN FLORIM
Our History
Our Locations
Our Brands
Our Design Service
Our 2016
GOVERNANCE
Code of Ethics
Management System Policy
Corporate Bodies
Corporate Structure
Stakeholders
Materiality approach
REPORTING
In brief
Economic Responsibility
Comments on the Economic Data
Value Generated
21
22
22
24
27
27
30
32
33
35
36
37
38
40
43
43
44
Environmental Responsibility
Certifications
Environmental Management
Energy Management
Social Responsibility
Employees amp Corporate Welfare
Local Community amp Culture
Product Responsibility
Quality System
OUR COMMITMENTS
The promises we kept
The targets we set for ourselves
FLORIM USA
Profile and Economic Responsibility
Environmental Responsibility
Social Responsibility
Quality System
Other Activities
GRI International Sustainability Indicators SDGs
2016 Sustainability Report4
FLORIM stone Marble Statuario and Stone Black
2016 Sustainability Report 5
Welcome to the ninth edition of our Sustainability Report a document which is gaining wider and wider appreciation amongst those who follow the Florim Grouprsquos performance for its synthesis of the companyrsquos many activities in Corporate Social Responsibilities
During the last year we have once again shown a strong commitment to a business approach which goes beyond the achievement of economic results alone and involves social projectsintended to last over time with the secondary benefit of enhancing the image of the Florim name
I believe this document is a true confirmation that despite uncontrollable global environmental uncertainties there are multiple opportunities to keep the high-quality levels that Florim has always achieved
We have made further large investments in our factories in Italy and in the USA and we will continue to invest in the years to come We have given the same level of importance to investments in ourimage adding new showrooms to those already established in Milan to give visibility to CEDIT the brand which has been rediscovered and relaunched this year with a specific exclusive product range
The ldquoGalleryrdquo and the ldquoHealthampTrainingrdquo Center continue to be hives of activity the company continues to hold its doors wide open to young people with the ldquoMaster in Florimrdquo program and the ldquoFondazione Ing Giovanni Luccheserdquo continues to engage in important charitable work
I am very proud to state that all Florimrsquos employees in Italy and abroad are the companyrsquos greatest resource So I would like to say a well-deserved ldquothank yourdquo to all those whose constant hard work sense of belonging and mutual cooperation represent a priceless assets that consolidate over time
Enjoy the report and thank youClaudio Lucchese
Letter to stakeholders
2016 Sustainability Report6
Our Sustainability Report
Methodological Framework and Reporting Perimeter
Writing and distributing its Sustainability Report enables Florim to communicate with its stakeholders with transparency describe the results achieved and set our future goals in an approach based on engagement and continual improvement
Drawn up annually in accordance with the GRI-G4 Guidelines for Sustainability Reports (the G4 edition of the Global Reporting Initiative guidelines) the report issued for the ninth time this year aims to report on the economic environmental and social aspects of the companys operations from a point of view more oriented towards the shared value produced for its stakeholders
The reporting process with in accordance-core compliance level is co-ordinated by Florimrsquos communications department and supervised by the Finance Department with the invaluable assistance of many colleagues especially the staff of the management accounting technical human resources and administration departments The data and information it contains are obtained from the companys IT systems and databases
The Report refers to all the companies in the Florim group on the same principle as the Groups consolidated financial statements The figures provided in the reporting section refer to our Italian location while the fourth section contains a brief Sustainability Report for Florim USA As already stated this Report is intended as an aid to dialogue and therefore the language used is plain and to the point
The 2016 Sustainability Report also published in English will be distributed as follows - provision of a copy to all employees at the Italian and American sites enclosed with their pay stubs- publication of the PDF file on the corporate Intranet and the florimit website- distribution to member companies of the new ldquoAziende Modenesi per la RSIrdquo (Modena companies for social
responsibility) association- mailing to local institutions and the relevant trade union representatives- distribution to the local press and to the specialist press during exhibitions and site visits- distribution to key clients and architects- mailing to the main domestic agenciesauthoritiesassociations involved in issues related to sustainability and the
environment
Florim produciont plant (Fiorano Modenese - MO)
2016 Sustainability Report 7
CEDIT - Storie Collection | Giorgia Zanellato amp Daniele BortottoNamed as Best of the Best at the 2017 Red Dot Design Award
2016 Sustainability Report8
Giovanni Lucchese pioneers the production of extruded clinker tiles and Floor Gres is founded in the heart of the Sassuolo production district
Floor Gres is the first Italian manufacturer to produce single-fired white body tiles
The Swimming Pool Division is established within Floor Gres
Floor Gres is one of the first companies in the world to start the manufacture of porcelain stoneware tiles
Claudio Lucchese son of the founder takes over the reins at Floor Gres after his fathers untimely death
Floor Gres acquires Cerim Ceramiche
Floor Gres and Cerim merge to create Florim
Florim acquires Rex Ceramiche Artistiche
The Project Division forerunner of todays Florim Solutions is created
Incorporation of Florim USA a production and distribution company destined to become a leader on the American market
Florim acquires Casa dolce casa
The Casamood brand is born
A logistics hub is opened in Brazil
The new multifunctional Florim Gallery is opened and the Florim Logistics area is completed at the Florim headquarters The Fondazione Ing Giovanni Lucchese foundation is established
The first Flagship Store is opened in Moscow
The Milan Flagship Store moves to a location in the very heart of the city A new Flagship Store opens in the center of New York
Florim relaunches the historic CEDIT - Ceramiche drsquoItalia brand (which opens its first flagship space in Milan) and FLORIM stone the Groups first brand focusing on the interior design sector
MADE IN FLORIM
Over 50 years of history
Over 1300 employees worldwide
27 million square meters produced every year
406 million Euro turnover
1424 tons of CO2 not emitted in 2015 thanks to the photovoltaic system
It takes more than figures to define a company Today passion innovation a constant commitment to improvement and corporate social responsibility are the core values of a new way of doing businessthe MADE IN FLORIM way
Our History 1962
1967
1976
1981
1984
1990
1992
1994
1995
2000
2005
2006
2011
2013
2014
2015
2016
Watch the Floriminstitutional video
2016 Sustainability Report 9
Our Locations The map shows the grouprsquos headquarters showrooms production plants and logistic hubsFlorim brand products are available from top international customers and importers
Our Brands
Floor Gres is the brand specifically for innovative architectural projects The Floor Gres product range meets all the many and varied needs of contemporary architecture in terms of design and technical capabilities and environmental standards
Rex is the brand which denotes stylistic excellence with products inspired by precious natural materials (wood marble and stone) coordinated floor and wall coverings in which the surfaces interact to generate a new language in home design
Cerim is the brand that focuses primarily on color and on decoration Coverings designed on an integral basis to make the most of all parts of the home and offer solutions that adapt to the most diverse interior design contexts
Casa dolce casa and Casamood is the brand intended for high-end architecture and interior design and offers attractively blended colours and surfaces drawn from nature for the creation of warm interiors A range of matching colours and surfaces that combines porcelain stoneware with other types of materials Architectural design effects are blended with the language of interior decoration to create new types of relationships
CEDIT - Ceramiche drsquoItalia embodies the dialogue between art craftsmanship and technology The brand that shapes ceramic matter in the service of creativity allowing leading names of our time to express themselves to their full potential Large designer slabs that renew the concept of architectural space
FLORIM stone is the brand that combines performance and practicality with the utmost personalization of spaces Large porcelain stoneware slabs at the service of interior design professionals delivering creative flexibility with outstanding technical performances and appearance values
Florim USA is the brand of the American subsidiary its porcelain stoneware tiles for residential and commercial use manufactured in the plant at Clarksville (Tennessee) are tailored to suit the tastes of the largest possible segment of the North American market
FLORIM USASite production plant and logistics hubClarksville TN (USA)
Flagship StoreNew York NY (USA)
Logistics hubParanagrave (BRAZIL)
OceSingapore (SINGAPORE)
Flagship StoreMoscow (RUSSIA)
Site production plant and logistics hubFiorano Modenese (Modena ITALY)Production plantMordano (Bologna ITALY)
- Flagship Store- Spazio CEDITMilan (ITALY)
2016 Sustainability Report10
Our Design ServiceAs well as the product itself Florim offers a unique level of technical support throughout the various design phases From the feasibility study to the final installation Florim Solutions works side by side with the architect providing skills and experience whenever the style and performance of porcelain tiles become fundamental to the project In the age of speed and the digital revolution the company has also created an integrated web platform to give its professional partners unbeatable service Exclusive events visibility for projects free training meetings and specific competitions are just some of the services offered by Florim4Architectscom
Expo Azerbajan Pavilion winner of the Florim4Architects ldquoProject of the Yearrdquo competition
2016 Sustainability Report 11
Our 2016In this section we focus on the latest news from the Group covering a wide variety of aspects but all confirming the importance of Florims large slabs and once again underlining the centrality of innovation for the companys business
New brands
In April Florim chose the Salone Internazionale del Mobile a major event for the global design community for the relaunch of the CEDIT - Ceramiche drsquoItalia brand The brand which has always had links with leading artists designers and architects has achieved a superlative creative standard over more than fifty years of experimentation with materials and stylistic research in ceramic design CEDIT is returning to the forefront of Italian manufacturing in partnership with some of contemporary Italys top creative names Its new identity is a fine blend of Craftsmanship and Innovation expressed on the large slabs produced by Florim technology December saw the official opening - in the heart of Milan - of the first Spazio CEDIT the tangible expression of an innovative display concept created to convey the brands philosophy to the world
The brand created to explore new application solutions reaching beyond the conventional construction concept is called FLORIM stone Launched at Cersaie - the biggest ceramics industry show - this brand combines the outstanding performances of porcelain stoneware with the utmost personalisation of spaces The dimensional and functional plus factors of latest-generation large slabs allow stoneware to be used in a versatile customized way not just as a wall and floor covering but also for tops and furnishings (tables kitchen worktops and bathroom counters doors and fireplaces are just some of the possible applications)
New look
A busy year partly due to the refurbishment of the Fiorano Modenese headquarters As well as the new gatehouse the faccedilade of the office building was also restyled bringing it up to date with an all-white lookAn innovative modification at the technological state of the art was made to the raw material shed with a ventilated faccedilade of almost 1900 msup2 of Magnum Oversize large slabs The installation reproduces the ldquoArcheologierdquo collection (designed by artist Franco Guerzoni for CEDIT) and the lake of Vernago in Italys Alto Adige region (photo by Vanni Borghi) A latest-generation project leading the way in technology safety and maintenanceLast but not least a new barrier was also designed and constructed to separate the Florim property from the SFrancesco road It took 3 months to erect a boundary fence of about 340 meters of double-sided porcelain stoneware slabs 180 cm high and 265 cm wide supported by a steel frame With a total of 1122 slabs the fence was designed to withstand weather earthquakes and the forces generated by traffic passing at high speeds Installed at different angles the slabs create attractive effects with light and shade demonstrating the importance of sophisticated aesthetics to the companys identity
New Awards
Florims large slabs are the featured products in the various awards received and have been assigned one of the most important accolades in the design world with an Honourable Mention at the XXIV edition of the ADI Compasso drsquoOro awards
Just a few months after its launch the CEDIT brand also received major awards at the global level the NYCxDESIGN Award in New York the Hospitality Design Awards in New York ldquo100 Best of 2016rdquo at the Archiproducts Design Awards 2016 and the Best of the Best (April 2017) in the Design Product category at the coveted German Red Dot Design Award
More recognition came from the Emilia-Romagna Regions 2016 awards for Corporate Social Responsibility projects run in the local community A prize in the ldquoBusiness and Educationrdquo category was assigned to the Master in Florim project which aims to give young people the skills required for sustainable development
Learn moreabout CEDIT
Learn moreabout FLORIM stone
2016 Sustainability Report12
In the age of digital transformation Florim still believes in the importance of creating opportunities for meeting and exchanging ideas and in 2016 more than 12000 people came to the Florim Gallery (a multi-purpose space of 9000 msup2 at the Fiorano headquarters) Events of social usefulness workshops community projects and business occasions our training events and hospitality staff were busy on many different fronts It was also a major year for off-site events The Florim Flagship Store in Milan and the just-opened New York Flagship Store hosted more than 3200 people at events for architects and designers supported with important partnerships with POLIdesign and leading publishersFlorim also chose the world-famous Peggy Guggenheim Collection in Venice as the location for two exclusive events to highlight the partnership agreement signed with Guggenheim Intrapresaelig A dinner in the wonderful setting of the museums panoramic terrace followed speeches by distinguished guests Ettore Mocchetti Martino Gamper Domitilla Dardi Giorgia Zanellato Daniele Bortotto Franco Guerzoni and Benedetto Fasciana The final event of the year was held for the employees with a ldquoWhite Christmas Partyrdquo evening at a Florim Gallery decorated for the festive season
A year of Florim events
LrsquoArte del Design - Florim event at the Peggy Guggenheim Collection (Venice)
2016 Sustainability Report
View the Florim eventat the Guggenheim
2016 Sustainability Report 13
GOVERNANCE
Code of EthicsThe groups governance plays a central role in the responsible development of its business ensuring ethical transparent management of its operations with its stakeholders interests always in mind
After approving the Governance Model compliant with the provisions of Italian Legislative Decree 2312001 the Florim Board of Directors signed and promoted the corporate Code of Ethics (revised in June 2016) which has become an integral part of Florims business and is accepted by every new employee supplier and agentTo guarantee the application of and compliance with its contents a Supervisory Board was established to detect any breaches of its provisions All stakeholders can also contact the Supervisory Board (organismodivigilanzaflorimit) for further explanations regarding the interpretation and application of the corporate Code of Ethics as described on the corporate websiteThe following is an extract from the rules of conduct which govern the way we do business
Our mission
To manufacture ceramic tiles and materials for multiple uses and offer the most appropriate solutions for both interior design and architecture To constantly prioritise environmental sustainability attempting to satisfy the needs of customers and to create value for shareholders employees and the local community in compliance with the ethical principles and rules of conduct set out in the Code of Ethics
Our vision
To be at the cutting edge of technical and design innovation in ceramics by developing materials and production methods that position us as a constant benchmark for customers architects and competitors
Our values
Honesty and Respect all internal and external relationships must be based on honesty and respect for rules and dignity of the individual
Corporate Social Responsibility corporate social responsibility must be promoted through measures and practices adopted to support the local environment and community
Individual Responsibility everyone must be aware of the worth and consequences of their own actions
Quality and Innovation excellence must be pursued by improving products processes and skills to promote corporate success
Transparency intentions and positions must be expressed openly and clearly without misunderstandings or misrepresentation to build lasting relationships based on trust both inside and outside the company
Courage a moral strength which enables us to undertake and deal with changes difficulties and challenges to benefit from all the opportunities they offer
Feeling of Belonging feeling proud to be a part of one big team made up of the company associates customers and suppliers
Management System Policy
To achieve greater and greater transparency in its reporting the company has drawn up guidelines for its quality environment safety and energy management system Read more
2016 Sustainability Report14
Corporate BodiesFlorim Ceramiche spa is a family-run business with fully subscribed paid-up share capital consisting of 50000000 ordinary shares with a face value of 1 Euro each The capital is 100 owned by the holding company FinFloor spa with registered office in Fiorano Modenese which is in turn indirectly owned by the Lucchese family through Fin-Twin spa
The Board of Directors has 11 members
CLAUDIO LUCCHESE Chairman
DONATO BRUNI Deputy Chairman
MARIADELE LUCCHESE Director
ANNA LUCCHESE Director
FRANCESCA LUCCHESE Director
GIOVANNI LUCCHESE Director
The Board of Directors has a mandate of one year and new elections will coincide with the approval of the financial statements The Board of Statutory Auditors is composed of three members whose term of office is three years from their appointment on 1252016 until approval of the 2018 financial statements The financial statements of Florim spa and the consolidated financial statements of FinFloor spa and Fin-Twin spa are audited and certified by Deloitte spa
Corporate StructureThe changes to be noted since the previous financial statements include the incorporation of ldquoMordano 4 srlrdquo and amalgamation by acquisition of Maker srl in Florim Ceramiche spa
KRONOS 2 CERAMICHE spaShare capital euro 1646799
Fondazione Ing G LuccheseEndowment euro 60000
FABBRICA delle MATERIE srlShare capital euro 10000
EDIL FLOOR surlShare capital euro 9812681
ISABELLA srlShare capital euro 100000
FI HOLDING IncShare capital USD 50000
100
10
100
30
9667
100
1
1
99
99
100
FIN TWIN spaShare capital euro 540800
FINFLOOR spaShare capital euro 10500000
542810
FLORIM CERAMICHE spasingle shareholder companyShare capital euro 50000000
100
FLORIM BRASIL LtdaDISTRIBUICcedilAtildeO DE CERAcircMICAS Ltda
Share capital R$ 46100000
FLORIM RUSShare Capital 100000 Roubles
FLORIM USA incShare capital USD 51865541
FLORIM SOLUTION IncShare capital USD 845943
100
MORDANO 4 srlShare capital euro 100000
85
FLORIM FAR EAST PTE LtdShare capital S$ 10000
100
ERMES GIUSEPPE FERRARI Managing Director
GIOVANNI GROSSI Managing Director
OSCAR ISEPPI Managing Director
DORVAN SAZZI Managing Director
STEFANO TORRENTI Managing Director
2016 Sustainability Report 15
StakeholdersStakeholders are all individuals and groups who may influence or be influenced by a companys operations in terms of policies products and working processes shareholders employees customers and consumers suppliers local government the local community banks and trade unions
Employees and Trade Unions
Florim makes the following commitments to its employees
bull to guarantee equal opportunities fair pay and professional growth
bull to reward its human resources on the basis of transparent meritocratic criteria
bull to create safe working environments and processes
bull to guarantee transparency and clarity in contract conditions
bull to encourage dialogue and internal communications
Customers and Consumers
In dealing with its (retail) customers Florim is committed to
bull creating a relationship of trust as a stable basis for business
bull guaranteeing clarity in contracts and prices
bull guaranteeing the reliability of its products and developing customer service
bull offering innovative safe environmentally sustainable products
bull providing a diversified offering with services with high value added
The overall aim is also to satisfy the expectations and demands of the final consumer
Developers Architects and Interior Designers
To meet the needs of developers Florim is committed to
bull offering state-of-the-art solutions in terms of environmentally sustainability technology and design
bull establishing and fostering relationships with partner professionals
bull providing consulting and technical experience from the project concept through to installation
bull supplying turnkey solutions
Local Communities and Local Government
In its relationships with local communities and local institutions Florim is committed to
bull guaranteeing dialogue cooperation and transparency
bull giving value back to the local communities in the areas where it operates
bull continually improving the environmental performances of processes
bull researching developing and using the most sustainable technologies
bull making an economic contribution to local sporting and social projects for children and young people
Suppliers
When selecting its suppliers Florim pays close attention to companiesrsquo CSR practices Florims relationships with its suppliers are based on compliance with the values of its code of ethics otherwise contracts are automatically terminated Florim also guarantees certainty in payment times and compliance with contract terms provided the goods and services contracted are delivered as agreed
ERMES GIUSEPPE FERRARI Managing Director
GIOVANNI GROSSI Managing Director
OSCAR ISEPPI Managing Director
DORVAN SAZZI Managing Director
STEFANO TORRENTI Managing Director
2016 Sustainability Report16
Materiality ApproachIn 2015 the company began an internal analysis process based on the materiality principle in order to identify the sustainability issues of relevance both for the Group (including Florim USA) and for all stakeholders Materiality is the threshold above which a topic becomes sufficiently important to be included in the report In fact organizations are faced with a large number of topics on which they could report Relevant topics and indicators are those considered important for reflecting the organizations economic environmental and social impacts or which influence the decisions of its stakeholder and which therefore potentially merit inclusion in the report In accordance with the GRI ndash G4 Guidelines Florim has analyzed and identified relevant topics which were assessed by the working team which drafted the Sustainability Report on the basis of discussion with the main stakeholders The findings which emerged were supported by a qualitative survey external to the companys context examining an analysis of the press gallery (more than 650 articles) competitors Sustainability Reports the Emas Study of the Fiorano and Sassuolo Ceramics District and the GRI document ndash ldquoSustainability Topics for Sector What do Stakeholders want to knowrdquo
In the chart below the aspects found to be most important appear in the top right-hand corner and constitute a strategic priority for the Group The topics in the bottom left-hand corner such as biodiversity prevention of corruption and absence of discrimination are less relevant because they are easy for both the organization and stakeholders to manage and no problems have ever been reported over the years Similarly the protection of human rights is now taken for granted since Florim complies strictly with all the provisions of the National Employment Contract
Importance for stakeholders
Importance for Florim spa
low
m
ediu
m
high
low medium high
Biodiversity
Indirect economic impacts
Prevention of corruption
Market share
Absence of discrimination
Sustainable transport
management
Protection of Human Rights
Environment and safety
Water saving
Energy efficiencyRaw materials
Diversity and equal opportunities
Transparency of financial and other
information
Ethical supplier
management
Investments in the local community and social welfare
Direct and indirect environmental
impacts
Green products and
services
Economic performance
Quality of products offered to customers
Regulatory compliance
Development of human resources
and training
ENVIRONMENT
COMMUNITY
EMPLOYEESASSOCIATES
ECONOMIC PERFORMANCE
PRODUCT RESPONSIBILITY
HUMAN RIGHTS
2016 Sustainability Report 17
FinFloor consolidated (in thousands of Euro) 2012 2013 2014 2015 2016
Net earnings 315344 325853 329533 374094 406759
EBIDTA 59608 72986 84395 98115 107186
Operating result 35717 50996 58508 66255 71028
Gross cash flow 52710 68312 83274 97268 109148
Net profit 26103 35732 36433 43324 49347
Net financial indebtedness (127730) (96500) (54524) (27326) (12508)
Final inventory 95514 84432 90283 92795 96721
Net shareholders equity 186905 218847 276916 332721 369937
Total investments 32572 48780 41584 34215 53531
2012 2013 2014 2015 2016
Waste produced (t) 30228 21170 22300 30862 34423
Recycled third-party waste (t) 4028 4190 1721 2570 5627
Total water consumption (msup3) finished product (t) 075 075 078 069 071
Recycled water percentage 100 100 100 100 100
Self-generated energy in relation to consumption 67 68 62 65 75
Investments in environmental management (euro000) 13617 2493 1995 465 6400
2012 2013 2014 2015 2016
Number of employees at 3112 1037 992 984 982 987
Total number of training hours 14690 9124 9056 7176 10606
Number of training hours on environment and safety 7572 4514 4200 3008 2489
Number of workplace injuries 63 62 74 56 43
Environmental and social profile figures refer to Florim Italy for Florim USA please see the relevant section (from page 37)
REPORTING
In brief
Economic Profile
Environmental Profile
Social Profile
2016 Sustainability Report18
Economic Responsibility
Comments on 2016 Economic Data
The Groups 2016 results were again good from every point of view
Compared to the previous year turnover increased by 87 leading thanks to careful management of production costs to an EBITDA of Euro 1071 million equivalent to 263 of turnover and a profit after tax of Euro 493 million
The companys financial data also significantly improved with a net financial position of Euro 125 million compared to Euro 273 million at the end of 2015 in spite of record technical investments of Euro 535 million and financial investments of Euro 11 million
Once again underlying the results achieved were large investments in latest-generation machinery and technologies painstaking research to develop materials with exceptionally high technical and design content human resources and projects for the increasingly direct promotion of Florims image and quality standard
Investments
The technical investments made in 2016 amount to Euro 535 million while Euro 11 million was spent on reacquiring 100 ownership of Maker srl followed by its amalgamation with Florim spa on 31 December The most important industrial projects included the continuation of the work on the Mordano plant which involved investments of Euro 26 million for the restructuring of the raw material preparation area and the doubling of production capacity for traditional porcelain stonewareThe investments of US$ 18 million at Florim USA were utilised to complete the renewal of the raw material preparation area and construct a new building for the technical organizationFinally about 9 million Euro was invested at Fiorano on various production line modernization projects
A creative hub for design style and new trends Milan once again confirms that it is the ideal setting for Florims investments and the opening of the all-new ldquoSpazio CEDITrdquo confirms the companys determination to strengthen its bonds with design professionals working in high-end interior design The culture of beauty art architecture and design are all integral to the genetic make-up of CEDIT ndash the historic Italian brand relaunched by Florim in 2016 ndash and dominate the display areas and the first six ceramic covering collections styled by famous names on the contemporary creative sceneOn two levels with a total floor area of more than 200 msup2 the space maintains the same stylistic identity as the one at Fiorano Modenese since they are both constructed to an architectural design intended to be replicated in CEDIT customers showrooms worldwide
Spazio CEDIT Watch theinauguration video
2016 Sustainability Report 19
Economic Value Generated and Distributed
The figures for the economic value generated and distributed provide a simple clear explanation of how Florim has created wealth and redistributed it to its stakeholders The table below contains the data from Florims 2016 financial statements approved by the Board of Directors on 30 March and certified by external auditorsThe economic value directly generated is represented by the total earnings for 2016 while the economic value distributed includes the costs incurred for suppliers and employees payments to the state (taxes) and the donations which had positive repercussions for the community to which Florim spa belongs
Heading 2014 2015 2016
Revenues 253125 269855 302521
Direct economic value generated 253125 269855 302521
Operating costs 135735 150951 168809
Employee wages and benefits 56985 58149 62418
Payments to providers of capital 7413 6399 11903
Payments to government 15738 13162 15382
Community investments 221 212 240
Economic value distributed 216092 228873 258752
Economic value retained 37033 40982 43769
KeyRevenues net sales plus revenues from financial investments and sale of assetsOperating Costs payments to suppliers non-strategic investments royalties payment facilitationsEmployee wages and benefits employee wages and benefits per employees (current payments)Payments to providers of capital all payments to the organizations providers of capitalPayments to government gross taxes and dutiesCommunity investments voluntary donations and investments in the communityEconomic value retained calculated as economic value generated less economic value distributed
The data in the table are in thousands of Euro and refer to the consolidated financial statements of the Italian companies only
KBIS (USA) - detail of the stand created with ldquoI Classici di Rexrdquo
2016 Sustainability Report20
Casa dolce casa ndash Argille 20 Collection
2016 Sustainability Report 21
Environmental ResponsibilityEffective environmental policy management energy saving and emissions reduction are amongst Florims strategic sustainability objectives
Our green projects in figures
2 highly-regarded process certifications
ISO 14001 (ENVIRONMENT)and ISO 50001 (ENERGY)
849873 MWh is the amount of electricity the
company succeeded in producing in-house during 2016
2 departments (marketing and communications)
engaged on digitizing advertising tools
8462 tons of CO2 NOT emitted
CO2
100 is the percentage of wastewater recycled
16000 msup2of photovoltaic panels covering
an area of 30000 msup2
75 is the percentage of the electricity consumed which is
produced in-house
4 latest-generation industrial kilns installed in
the last 3 years
4 different types of environmental product
certification
2 cogeneration plants to increase energy saving
and efficiency
1 laboratory for the development of contemporary design projects with a specific focus on the materials green
content
100is the percentage recycling of
industrial greenware waste in the production process
2016 Sustainability Report22
Certifications
System and process certifications
UNI EN ISO 14001TUumlV has awarded Florim the highly-regarded UNI EN ISO 14001 voluntary certification which confirms its compliance with a series of internally certified procedures intended to improve the internal environmental management system The decision to seek this certification springs from the desire to reconcile quality with efficiency and productivity while protecting the environment and community in which the company operates
UNI EN ISO 50001Thanks to a careful energy management policy and aided by the latest investments in the production area also intended to improve energy efficiency Florim was the worlds first ceramics manufacturer to obtain ISO 50001 certification of its Energy Management System
In addition to its environmental certifications Florim has also been awarded prestigious AEO (Authorized Economic Operator) status
Further to a lengthy and demanding audit process by the Customs Authorities in 2016 Florim was awarded AEO certification the first company in the Province of Modena to receive this major form of approval Authorised Economic Operator status guarantees the companys absolute compliance with customs and security requirements in its foreign trade
Environmental Management
Waste 2012 2013 2014 2015 2016
Total waste produced (t) 30228 21170 22300 30862 34423
Non-dangerous recyclable waste (such as paper and cardboard fired scraps plastic glass and wood) ()
989 982 985 991 989
Non-dangerous disposed-of waste (such as the waste picked up by the motor sweepers) ()
02 04 02 02 02
Dangerous recyclable waste (such as spent oil batteries and monitors) ()
00 01 01 01 00
Dangerous disposed-of waste (such as spent lime) () 01 13 12 07 09
Third-party waste recycled within the production process (t) () 4028 4190 1721 2570 5627
Besides recycling greenware waste from its own production cycle (not included in the table because the amount cannot be calculated) Florim also recycles third party waste
Florims operations have always been oriented towards optimization of impact on the local community and environment Thanks to the work of its research laboratories the support of all staff and the recent investment plans tangible results have been achieved The data provided below reveal that in spite of an increase in production of 8 compared to the previous year consumption remains low The companys commitment to environmental protection is all-inclusive and also comprises a focus on the district within which it operates One example is the total removal of all asbestos cement from the Fiorano Modenese plant and the creation of the new recycling station opened in 2015 and donated to the Local Authority as a public serviceAs in previous years during 2016 Florim was not fined for any breaches of environmental regulations or laws
Florim recycles and optimises within the production process all greenware scraps dust residues from filters and sludge from the process and rectification wastewater treatment system The waste produced is detailed in the table the significant differences between years are due mainly to the major demolition and subsequent reconstruction works undertaken at the Italian plants
Waste Management
2016 Sustainability Report 23
Water Resources
No environmental impact of wastewater discharges is specified since all the water from the production cycle is completely reused (100) All other effluents comply with legal requirements
The figure states the total cubic meters of water used per ton of finished product The water used in the Fiorano production process is drawn from private company-owned wells with water from the public main only used for non-industrial purposes The Mordano plant is supplied by an industrial water main Water use is measured by means of meter readings Four highly innovative dry rectifying plants have gone into production at Mordano since 2015 enabling the company to eliminate the physicalchemical treatment of the water used in the rectification process
WATER USE
2012
08
2013
08
2014
08
2015
07Total water consumption (msup3) finished product (t)
07
2016
All packaging used for Florim materials is made from recycled paper and parts of the coverings used to protect pallets of finished products consist of recycled plastic Whats more all the packaging used (boxes cardboard shrink wraps pallets etc) can be completely recycled by the end user The latest investments made include new eco-friendly packaging machines increasing the number of these machines installed to 15 These plants completely eliminate waste due to leftover inventory saving significant amounts of cardboard
Packaging and Coverings
As the materiality assessment states Florim has no significant impacts on the biodiversity of its local area since the company is located inside the Fiorano Modenese ceramics manufacturing district at least 5 Km from the nearest nature reserve at Salse di Nirano Florim takes special care over the choice of the raw materials used for its tile body mixes of which it is required to provide documentation guaranteeing compliance with the European Directives protecting wild birds (EU Dir 79409EEC) and habitats (EU Dir 9243EEC) and the United Nations Convention on the protection of biodiversity It has also introduced a software program - used at the 3 production plants (Italy and the USA) - for the management of data on the origin of raw materials such as quarry location distance from the factory recycled content declaration technical safety and radioactive content data sheets and the expiry of the quarrying permit issued by the government
Raw Materials and Biodiversity
2016 Sustainability Report24
Energy Management
There is no disputing that large amounts of energy are required to power the production processes of ceramic tile plants with consequent direct and indirect impacts on the local area and the environmentThe main indicator used to measure plants energy performance is the mean specific total energy consumption (TEJ) measured in GJt of product transferred to stock As the table below shows this figure is obtained by adding together heat consumption (NGJ) and electricity used (EEJ)
Parameter ndash Definition Unit of measurement
2012 2013 2014 2015 2016
NGJ Mean specific natural gas consumption in relation to the unit of weight of finished product transferred to stock
GJt 557 571 576 578 598
EEJ Mean specific electricity consumption in relation to the unit of weight of product transferred to stock
GJt 111 108 111 108 107
TEJ Mean total specific energy consumption in relation to the unit of weight of product transferred to stock
GJt 668 679 686 685 705
Self-generated electricity as a proportion of consumption
67 68 62 65 75
With two cogeneration plants (for the combined in-house production of heat and electricity) and 16000 msup2 of photovoltaic panels the company certainly sets a new benchmark for the entire ceramic tile industry 2016 saw the replacement of the Fiorano turbine set (the main component of the cogeneration plant) while the one in Mordano was kept in operation 247 factors which led to a 10 increase in in-house electricity production in relation to consumption To provide a clearer idea of the scale of the achievement the amount of electricity the company generated in-house in 2016 (849873 MWh) would cover the average annual consumption of about 37000 households (With consumption per household of 229 MWh - data from the latest ISTAT survey in 2012ndash calculated on the Italian average)
Photovoltaic Plant
kWp kWh produced kg of CO2 not emitted
270021 15937250 8462680
Good Practice
The head office organizations are also optimizing paper and energy consumption In addition to issuing and distributing the energy saving handbook for its offices the company is also trying to maximize savings on the raw material used and specifically the use of paper Internally the company only purchases reams of paper which carry environmental certification and the paper used in offices is collected separately for proper disposal Externally the company distributes a system of merchandising products made mainly from recycled paper and encourages the gradual digitization of its marketing tools as well as publishing all its catalogues in digital format on its Internet sites Florim offers its distributor companies an innovative digital touch screen tool with the pdf versions of the catalogues and other tools for the final consumerIn 2016 Florim decided to adopt a new payslip distribution procedure introducing an online processing system As well as providing employees with new functions and greater operating flexibility thanks to this system the company no longer prints out the monthly payslips saving paper ink and energy The scheme initially involving all office workers has the ambitious target of also including the staff of the Fiorano and Mordano plants
The 16000 square meter photovoltaic plant received recognition from GSE (Energy Management Services) as one of the most innovative installations of its type and from its commissioning (October 2011) up to December 2016 it produced the following results
2016 Sustainability Report 25
Atmospheric Emissions
The industrial facility emits greenhouse gases basically CO2 from the following main sourcesbull combustion from the burning of fossil fuels (such as natural gas)bull processes from the minerals in the raw materials any organic matter in the clays used and any organic additives in tile body mixes
In order to comply with Directive 200387EC (ETS - Emission Trading Scheme) Florim has been reporting and certifying its CO2 emissions since 2013
CO2 emissions 2013 2014 2015 2016
CO2 emissions (t) 102728 103462 111862 132960
CO2 emissions (t) Finished product (t) 033 033 033 035
Emissions from the production cycle 2013 2014 2015 2016
Particulate material (gmsup2 finished product) 223 130 098 118
Lead (gmsup2 finished product) 000 000 000 000
Fluorine (gmsup2 finished product) 014 018 013 012
The increase in CO2 is due mainly to the large increase in the square meters produced (+ 8) and the 247 use of the cogeneration plant However it should be noted that the cogeneration plant provided a 10 increase in in-house electricity generation with lower CO2 emissions than electricity purchased from the grid produced mainly using fossil fuels (source ISPRA Fattori di emissione atmosferica di CO2 e sviluppo delle fonti rinnovabili nel settore elettrico Rapporti [Atmospheric CO2 Emission Factors and Development of Renewables in the Electricity Sector Reports] 2122015)The ratio between CO2 emissions and tons of finished product produced increased because in 2016 the sale of spray-dried material to other companies rose compared to the previous year (emissions from this phase are included in the emissions count but there is no corresponding output of finished product)
In a change from previous years the new GRI-G4 guidelines also require reporting of nitrogen oxide and sulphur oxide emissions Nitrogen oxide (NOx) emissions are within the limits permitted under the integrated environmental authorisation Sulphur oxide (SOx) emissions are not reported here since this figure is not required by the IEA
Transport
The materiality study reveals that transport is a significant factor for both stakeholders and Florim itself The company is not able to measure the impact of transportation of finished product on the local area since all shipments are ex-works However Florim which has been introducing electric vehicles to replace its oldest most obsolete unleaded petrol forklifts for years now has further optimized the handling of materials thanks to the new highly-automated logistics hub created at the via Canaletto location In 2016 about 53 of the vehicles used on the companys premises were electric with no direct greenhouse gas emissions
2016 Sustainability Report26
CEDIT ndash Creative Composition
2016 Sustainability Report 27
Workforce Composition
In 2016 the workforce included 27 people with disabilities 6 women and 21 menBearing in mind the job descriptions arising from the specific industrial sector the breakdown between men and women is in line with the industry average Male office workers and executives earn an average of 10 more than women for jobs of equal responsibility Among blue-collar workers the difference is 7 The company had a total of 29 foreign employees 24 at Fiorano and 5 at Mordano
Manager Executive Office worker
2013 2014 2015 2016 2013 2014 2015 2016 2013 2014 2015 2016
Women 2 3 3 3 3 1 1 1 137 142 133 149
Men 18 21 20 18 21 24 25 28 127 132 128 132
Total 20 24 23 21 24 25 26 29 264 274 261 281
Office ancillary Blue-collar worker Total
2013 2014 2015 2016 2013 2014 2015 2016 2013 2014 2015 2016
Women 18 16 25 19 226 219 212 196 385 381 375 368
Men 64 68 79 64 376 358 356 377 607 603 607 619
Total 82 84 104 83 602 577 568 573 992 984 982 987
Social Responsibility
Employees amp Corporate welfare
Its employees are the heart and soul of Florim they provide its character and its DNA Since 2009 when the current major economic crisis began Florim has undertaken a number of income support programs for its workforce Below we summarise some of the ongoing programmes and others run in 2016bull Ending of the Income Support Program for the Mordano plantbull Agreement with Sassuolo Hospital under which Florim employees and their family members enjoy discounts and shorter waiting times for specialist examinations and outpatient diagnostic tests performed on a private basisbull Special agreements with local health facilitiesbull Tax advice at special rates bull Special terms for banking services with financial consultants on-sitebull Discounts on the purchase of Florim products for employees homesbull Free entry to the Peggy Guggenheim Collection in Venice for employees and concessions for family membersbull Free provision of water and mineral salts in the plants during the summerbull Distribution of fuel vouchers to employees for the Christmas holidays
Summer Play Schemes and Cregraveches
In 2016 the summer play schemes for the children of employees at Fiorano and Mordano were continued for the fifth year in succession Seven different centers across the area between Modena and Bologna hosted 85 children (twice the number of the previous year) the company paid the fee for two weeks attendanceWhats more since 2013 the company has negotiated special terms with local cregraveches which now offer a number of places for employeesrsquo children at a reduced fee
2016 Sustainability Report28
Human Resources Management Policies
In July 2015 on renewal of the in-house supplement to the national employment contract the Management introduced a new phase in its relations with the Trade Unions with the aim of continuing and improving the good relationships enjoyed for decadesThe new company contract applied for all employees at the Fiorano headquarters includes more facilitations for part-time working the willingness to allow flexitime where feasible and the commitment to invest in staff training in order to generate full benefits from intellectual capital The company and the trades unions agreed on a plan to improve efficiency fundamental for maintaining the current level of competitiveness by establishing improvement in Production Efficiency and EBITDA as criteria for the payment of the new Performance Bonus The individual Attendance Score is considered together with these parameters The 2016 Performance Bonus in its first year of application was 20 higher than that paid in 2015 In addition in response to employees requests the Company increased the number of approved canteens extending the choice available and also introduced weekly laundering of work clothing for all production workersWith regard to applications for severance pay advances the Company confirms its commitment to continuing the policy implemented so far
Training
Florim believes that in-house training plays a key role in the companyrsquos development and provides a tool for stimulating and fulfilling the potential of its human resourcesMore than 10600 training hours were provided in 2016 to 847 people with an average of more than 11 hours of training per employee New projects included a 6-month on-line English language course which attracted a large number of participants and two highly structured training courses for the sales division and the communication department A retraining program for workers at the Mordano plant was also completed it comprised 4 technical courses attended by 31 people for an average of 13 hours per person Another new entry for 2016 was an innovative procedure for acquiring information about training needs using an on-line questionnaire available to all employees as well as line managers specific recommendations The Master in Florim project is discussed in depth in the specific section
Health and Safety
Florim was the first Italian ceramics manufacturer to receive BS OHSAS 18001 (Occupational Health amp Safety Assessment Series) certification from TUumlV this international standard certifies the implementation of an internal management system oriented towards occupational health and safetyThis major award confirms the companys constant commitment to the well-being of its employees Every year in addition to engineering inspections and machinery maintenance a number of hours of safety training are organised to raise awareness among workers and supervisors Specifically in 2016 2849 hours were dedicated to safety training and a significant reduction in injury rates was recordedMoreover BLSD refresher courses are continuously held for the team of Florim employees trained in first-aid operations and the use of the defibrillators available on site
2012 2013 2014 2015 2016
Number of workplace injuries 63 62 74 56 43
2016 Sustainability Report 29
The Master in Florim organized for the fourth time in 2016 is a vocational training project which aims to bridge the gap between education (high school or university) and the world of work The program which is one of the companys Social Responsibility projects sets out to help young people to get to know the company through a well structured work experience plan It offers a distinctively northern European approach with a method which alternates classroom teaching with internships in the various areas of the company Participants new university or high school graduates specialising in various subjects all below 30 years of age are therefore able to gain hands-on experience of all Florim departments from RampD to the production process and product distribution for an all-inclusive vision The MASTER courses ambitious aim is to match the individual participants talents with the companys real needs At the end of each edition the company hires all or some of the selected candidates enabling it to acquire new skills new experiences and new energy
Master 40 in figures
20 young people taking part6 months of training13 external lecturers264 hours of classroom teaching392 hours of practical training4 company visits (Ferrari Tetrapak Cremonini and Ducati)50 days of work experience on rotation involving 15 departments1 month of project work
The projects prestige is enhanced by its economic context since Florim pays the young participants for the entire period and its aim is to deal with the thorny problem of youth unemployment The Master has won approval from various faculties at major Italian universities The project was also a winner in the Emilia-Romagna Regions 2016 awards for Corporate Social Responsibility projects run in the local community A prize in the ldquoBusiness and Educationrdquo category was assigned to the Master project which aims to give young people the skills required for sustainable development
Master in Florim
2016 Sustainability Report
Watch the videoof the 4th edition
2016 Sustainability Report30
Local Community amp Culture
This chapter describes a number of programs Florim runs for the local community in the area where it originated and where it has been working for more than 50 years
Politecnico di Milano
Since the 20052006 academic year Florim has been a partner sponsor of a large number of Postgraduate Courses run by POLIDesign the Politecnico di Milano consortium which organizes its Master Degree coursesAlso in association with POLIDesign since 2012 Florims Milan showroom has hosted several design events for architects and designers of every nationality
Aziende modenesi per la RSI
ldquoAziende Modenesi per la RSIrdquo an independent open inclusive association of companies in the Modena area which believe in the principles and values of Corporate Social Responsibility was established by public deed on 30 September 2014 with Florim as a founding member Florim hosts the associations member companies every year to discuss the various topics proposed
Premio Lucchese
The Premio Lucchese presented for the twenty-ninth time in 2016 was established in memory of Giovanni Lucchese and consists of scholarships awarded to students at the ldquoAlessandro Voltardquo Technical High School in Sassuolo who graduate with full marks The award ceremony held every year at the Florim Gallery in association with Societagrave Ceramica Italiana of Bologna includes a talk given by a leading personality on a topic of current interest to an audience of eager young listeners
Intrapresaelig Collezione Guggenheim
As befits a company that combines the values of its local community and historic and artistic heritage with a flair for research and innovation Florim recently launched a partnership with the Peggy Guggenheim Collection Since its foundation Florim has always had a unique ability to incorporate the true cultural significance of its industry in its business model and by this project once again confirms its commitment to promoting art by supporting a collection of extraordinary beauty
Fondazione Ing Giovanni Lucchese
More than thirty years after the untimely death of Giovanni Lucchese ndash founder of what was then Floor Gres currently Florim ndash in 2013 his family established a Foundation in his name which since then has funded organizations and associations that support families in need in the ceramics district The Foundation also supports a variety of projects such as the summer play scheme for employees children the Premio Lucchese and the Florim HealthampTraining Center described in more detail below
The main projects undertaken in 2016 include the funding of the purchase of 10 defibrillators for the Municipality of Fiorano and the contributions made to the purchase of paediatric ambulances for the local area and to support the Parish charitable organizations and social services in the district
Watch the Premio Lucchese video
The project run jointly by Florim and Sassuolo Hospital adopts a completely new model combining industrial culture and healthcare in an original way to benefit the local people and community thanks to the coming-together of a ceramic coverings manufacturer and the public-private joint venture Ospedale di Sassuolo Spa Florim HealthampTraining is the synthesis of this idea an experimental center which promotes local training for healthcare and other staff health education and information advanced medical simulation and research
The Center
On the main Florim site and opened on 16 April 2014 the Center is 550 square meters in area and contains a modular lecture theatre able to seat over 100 people and a number of classrooms for seminars and lessons At its heart is a state-of-the-art control room crammed with technology that operates dummies capable of reproducing human functions of all kinds Advanced simulation is a major aid to maintaining the skills of emergency healthcare workers with a particular focus on pediatric and neonatal resuscitation
Health meetings
Designed as a space for community use the Center also aims to become a place where all sections of the population - workers schoolchildren parents teachers volunteers and even just members of the public - can learn about preventive health care and acquire first aid skills After the distribution to Florim employees of a questionnaire surveying their training needs and preferences a Center Scientific Committee of Sassuolo Hospital medical personnel was appointed and drew up a plan of bi-monthly ldquoHealth meetingsrdquo All meetings are led by doctors with expertise in the various topics who answer the many questions from the audience at the end of their talks Between its opening and the end of December 2016 the Center hosted 13 meetings on a variety of topics attended by about 1000 people including employees their family members and the community at large
Healthcare discounts for Florim employees
The project also includes a major welfare program for all Florim employees and their family members entitling them to discounts and shorter waiting times for specialist examinations and outpatient diagnostic tests performed on a private basis
American Heart Association
The world-famous American Heart Association (AHA) is the oldest and most respected American voluntary organization dedicated to the fight against cardiovascular diseases and strokes In 2015 the AHA via the Simaid International Training Center named the Florim HealthampTraining Center as an Authorized Training Site for basic and advanced cardiopulmonary resuscitation
Florim HealthampTraining Center
2016 Sustainability Report
Watch the Health amp Training Center video
2016 Sustainability Report32
Product Responsibility
Here we summarize the concept of Made in Florim denoting a product that encapsulates the companys core values passion innovation a constant commitment to improvement and corporate social responsibility
Florim product certifications
CE Marking guarantees the user that the materials purchased meet the requirements of the relevant regulations and that the characteristics concerned are virtually unchanged for all production lots It is a declaration of conformity which protects the consumerrsquos safety The presence of the CE Marking on packaging guarantees that Florim products comply with the relevant regulatory requirements
Ecolabel (EC Regulation 662010) is a certification granted to products which comply with ecological and performance criteria set at a European level concerning raw material extraction supplier selection manufacturing processes packaging distribution use and disposal The certified Florim collections are Architech Ecotech Reverse Walks 10 by Floor Gres and Pietra del Nord under the Rex brand
Several ceramic tile collections bearing the Florim brands have earned certification from Bureau Veritas for their pre-consumer recycled material content These articles are therefore fully eco-compatible and can meet the environmental sustainability requirements imposed by many international certifications
Florim is a member of the US Green Building Council (USGBC) the most important association which promotes the reduction of buildings negative impact on the environment To allow the effective monitoring a projects level of sustainability the USGBC has developed a certification procedure for the development of sustainable buildings which assess and certifies the sustainability of a building in its entirety Florim materials are able to help to gain LEED points in a number of areas (data available on the Florim brand websites)
Florim has achieved the prestigious Greenguard certification for all its products Issued by the American body UL Environment this certification aims to reduce indoor pollution caused by interior design systems and materials UL Environment thus aims to protect health by improving air quality and reducing peoples exposure to chemicals and other pollutants Florim has also achieved Greenguard Gold Certification which imposes even stricter limits to confirm that a given product is suitable for use even in locations such as schools and health care facilities
The EPD or Environmental Product Declaration is a document which defines the environmental impacts arising from production In 2016 Florim participated in the study - certified by the German organization IBU - performed on the ceramics industry average data which aims to raise international awareness of the excellence of the environmental standards achieved
Beyond the standardsMade in Florim products are a guarantee of safety highly innovative content and eco-friendliness The people who produce them work in a safe place and in ethically sustainable conditions Due to their nature all Florim products are guaranteed free from pollutant emissions do not accumulate electrostatic charges are frostproof and completely inert and are undamaged by contact with flames The Groups Internet sites and collection catalogues contain the technical data sheets which detail the product information (slip-resistance breaking strain abrasion resistance etc) for every collection as well as its recycled material content with the relative certificates
During the period under consideration no banned products were placed on the market and the company was not found guilty of any breaches of the law with regard to data protection or its marketing and communication activities
EU Ecolabel nr IT2104
2016 Sustainability Report 33
Quality SystemThe current ISO 9001 standards define quality as the ability to satisfy explicit or implicit needs via a product or a service A Quality System implies constant improvement of company processes in order to realise products that always satisfy the customerrsquos needs Further to the 2016 audit Florim obtained the renewal of its UNI EN ISO 90012015 certification for the design manufacture and sale of all categories of ceramic tile
Objective Indicator 2012 2013 2014 2015 2016
Continual improvement of control of the production process
Percentage of First Grade Product ()
924 943 942 952 956
Quality rate () 883 905 903 905 909
Scrap rate () 44 41 42 42 49
Productivity (sq mhour) 186 188 186 190 200
Improvements in sales performance and customer satisfaction
Innovation rate () 330 296 367 455 364
Coverage () 795 714 814 813 816
Total portfolio shippable within one month ()
911 837 888 893 897
Optimization of range and stocks
Obsolete stock () 172 126 165 120 69
Stock turnover rate () 13 15 16 15 16
Gradual elimination of disputes complaints and claims concerning service
Square meters affected by complaints ()
17 12 08 12 09
Complaints by number of order items ()
10 11 11 10 10
Gradual improvement in staff skill levels
Employee turnover () 15 23 04 04 12
KeyPercentage of first grade product percentage ratio between the square meters of first grade products and the total square meters transferred to stockQuality rate percentage ratio between the square meters of first grade product transferred to stock and the square meters leaving the pressesScrap rate percentage difference between square meters of material leaving the presses and square meters of product actually transferred to stockProductivity ratio between the square meters transferred to stock and the total hours worked in the plantInnovation rate ratio between square meters sold belonging to series designed in the last three years and total square meters sold Florim uses this indicator to assess the effectiveness of its design process in terms of salesCoverage percentage ratio between square meters available for immediate shipment and the square meters on orderTotal portfolio of orders shippable within one month percentage ratio between the square meters which can be shipped in 30 days and the square meters on orderObsolete stock percentage ratio between the square meters of substandard discontinued produce and the total square meters in stock Stock turnover rate ratio between the square meters sold and the square meters in stockSquare meters affected by complaints percentage ratio between the square meters affected by complaints and the square meters soldComplaints by number of order items percentage ratio between the number of complaints and the number of items orderedEmployee turnover percentage ratio between the number of employees leaving the company and being replaced and the workforce at the start of the year
2016 Sustainability Report34
Casamood - Neutra 60 Collection
2016 Sustainability Report 35
OUR COMMITMENTS
The promises we keptIn our last Sustainability Report we committed to achieving a large number of objectives the following are the outcomes we attained
Relaunch of the ldquoCEDIT ndash Ceramiche drsquoItaliardquo brand OBJECTIVE ACHIEVED
Launch of the FLORIM stone brand OBJECTIVE ACHIEVED
Installation of a new latest-generation kiln at the Mordano plant OBJECTIVE ACHIEVED
Transfer of the Moscow showroom to new premises SCHEDULED FOR 2017
Creation of a new gatehouse at the Mordano plantOBJECTIVE POSTPONED TO GIVE PRIORITY TO THE CONSTRUCTION OF THE NEW FACTORY
Introduction of ERP system at Florim USA OBJECTIVE ACHIEVED
Installation of a new spray dryer and raw material handling system at Florim USA
OBJECTIVE ACHIEVED
Economic Responsibility
Renewal of certification of the Florim environmental and energy management system
OBJECTIVE ACHIEVED
Award of new certifications for collections manufactured with a high recycled material content
OBJECTIVE ACHIEVED
Continuation of work to reduce environmental impacts at Mordano especially with the reduction of energy costs
OBJECTIVE ACHIEVED
Continuation of the work to remove asbestos cement roofing materials at the Mordano plant
OBJECTIVE ACHIEVED
Expansion of the system which conveys rainwater to the treatment plant OBJECTIVE ACHIEVED
Reduction of the noise emissions of the air filtering systems OBJECTIVE ACHIEVED
Increase of recycling targets through constant awareness-raising amongst all staff and optimisation of recycling facilities
OBJECTIVE ACHIEVED
Continuation of replacement of the diesel forklift trucks for use on outdoor yards with electric vehicles
OBJECTIVE ACHIEVED
Environmental Responsibility
Running of fourth edition of Master Florim course with new procedures OBJECTIVE ACHIEVED
Creation of an internal refreshment area for the Fiorano office staff OBJECTIVE ACHIEVED
Improvement of corporate welfare through the activation of new free services and discounts tailored to employees needs
OBJECTIVE ACHIEVED
Continuation of the health meetings for the local community in association with Ospedale di Sassuolo Spa
OBJECTIVE ACHIEVED
Organization of new community events at Florim Gallery OBJECTIVE ACHIEVED
Organization of Florim Family Day 2016 A PARTY WAS ORGANISED FOR EMPLOYEES
Social Responsibility
2016 Sustainability Report36
The targets we set for ourselvesWe aim to achieve the following objectives in 2017
Economic Responsibility
Construction of a new factory at Mordano to produce large slabs
Launch of the project to unite the Florim spa sales organizations
Total restyling of the corporate and brand Internet sites
Launch of the HUB project - Intranet CRM Marketing Automation
New plants at Florim USA a press two sorting lines a polishing and rectifying line
New working spaces and cloakrooms for technical staff at the American plant
Environmental Responsibility
Purchase of a new cogenerator for the Mordano plant
Introduction of a new rainwater collection system at Fiorano
Land reclamation project involving covering of the Rio Spezzano stream at Fiorano
Implementation of new software for continual monitoring of energy impacts at Fiorano
Modernisation of the compressor room to improve energy impacts at Mordano
Increase of recycling targets through constant awareness-raising amongst all staff and optimisation of recycling facilities
Continuation of replacement of the diesel forklift trucks for use on outdoor yards with electric vehicles
Social Responsibility
Improvement of corporate welfare through the activation of new free services and discounts tailored to employees needs
Continuation of the health meetings for the local community in association with Ospedale di Sassuolo Spa
Organization of new community events at Florim Gallery
Organization of a new event for Florim spa employees
New offices for hospitality and events staff at Fiorano
2016 Sustainability Report 37
FLORIM USA
Profile and Economic ResponsibilityFlorim USA with registered office at Clarksville - Tennessee - and its subsidiary Florim Solution Inc have been part of the Florim Group since 2000 The Florim USA manufacturing plant one of the largest most technologically advanced in the United States produces porcelain stoneware tiles for the residential market and undertakes commercial projects in North America During the last few years Florim USA has implemented a growth and process optimization strategy which has generated significant technological progress with more innovations planned for the future The strategy adopted will put Florim USA at the worldwide state of the art in porcelain stoneware tile manufacture
In 2016 of the 18 million USD invested 147 was allocated for installation of a latest-generation raw material handling system and a large spray-dryer with an innovative sorting system Improvements were made to other parts of the process to increase their efficiency leading to a further reduction in emissions and scrap rates Additional investments are planned during 2017 to continue this dual trend of rising production with mitigation of environmental impact
The new Florim Flagship Store in New York (152 Madison Avenue 32nd Street)
2016 Sustainability Report38
Environmental ResponsibilityFlorim USA implements the same environmental policy as Florim and is committed to achieving the following objectives
bull reduction of the energy used in the production processbull improvement of the waste management process with a focus on recovery and reusebull introduction of new more eco-efficient technologiesbull adoption of integrated management systems
Florim USA has been pursuing a strategy of careful management of its operations and environmental impact for a number of years Here we summarise the main actions taken and the results achieved in 2016
bull installation of a latest-generation spray-dryer in 2016bull installation of an innovative raw material handling system in 2016bull 100 recycling of wastewater within the processbull optimisation of the management of water bottles with elimination of about 34200 of them per annumbull reuse of almost all production scrap (+99)bull 157000 kg of cardboard recycled in 2016bull award of two different types of product certificationbull 9300 kg of plastic recycledbull recycling of 17 complete trucks of pallets
Environmental Projects and Awards
Florim USA has received Clarksville Montgomery County Green Certification (CMCGC) CMCGC is a program designed to help companies learn and implement best practices in the area of environmental stewardship to sustain the local communityrsquos resources through a series of free workshops taught by local environmental specialists Since 2014 Florim has allocated some of its Environment Managers time for the running of these workshopsFlorim USA earned this green company certification thanks to a large number of projects first and foremost the one which eliminated the use of disposable water bottles replaced with individual reusable bottles provided by the company and a series of fill-up stations About 34200 bottles are removed from the waste cycle every year
During the latest phase of its plant optimization Florim USA has implemented a thorough construction material reuse policy In the various stages of demolition of the old plants including the old storage silos the concrete debris was recovered and reused in other construction worksThis project alone generated 11500 tons of recycled aggregate as well as several hundred tonnes of metal sold to a recycling firm
Environmental management system and eco-compatible products
Florim USArsquos products help builders and designers to meet the requirements for sustainable buildings as defined by the United States Green Building Council (USGBC) through the LEED Green Building Rating System This protocol evaluates and certifies the environmental sustainability of a building as a unit from its design to its day to day management To gain LEED credits many of the Florim USA product lines contain a significant percentage of recycled material (40 or more)This feature contributes to an increase in the LEED score in the projects where these products are installed In 2014 Florim USA together with a large number of other US tile manufacturers and the Tile Council of North America drew up a type III environmental product declaration (EPD) certified under the ISO 14025 standard This ceramic tile life-cycle analysis enables Florim USA products to gain LEED points under the new LEED v4 protocol
2016 Sustainability Report 39
Water use (gallonsper million square feetof finished tiles)
208137 216246 204962 195280 194268
Energy use
2012 2013 2014 2015 2016
Cubic feet of natural gas per million square feet of finished tiles 9343383 9149721 8331170 8390503 8380000
kWh per million square feet of finished tiles 510972 491171 450594 465976 490300
Emissions
Particulate material lt 21024 tonnes per annum
SO2 (sulphur dioxide) lt 1674 tonnes per annum
VOC (volatile organic compounds) lt 1245 tonnes per annum
NOx (oxides of nitrogen) lt 1501 tonnes per annum
Environmental performance indicators ndash summary
The following are the main environmental indicators related to the impact and performance of Florim USA during 2016
Pre-consumer recycled material
Its internal material recycling processes enable the company to minimise its environmental impact since most of the material which would otherwise be sent to landfills or other waste treatment centers is reusedbull Wastewater is entirely recycled within the production process without any discharge into the municipal drainsbull The material in the collection bags from the tile body and glaze preparation areas the press and glaze application is entirely recycled within the processbull All scrap fired tiles are entirely recycled within the processbull 157000 kg of cardboard was sold to an external recycled material dealerbull 17 trucks of unusable wooden pallets were sold to a pallet regeneration companybull About 9300 kg of waste shrink-wrap plastic film was recovered and recycled
Post-consumer recycled material
About 82000 kg of glass was removed from the flow of waste destined for the local landfill and recycled within the process Florim USA has signed an agreement with the local landfill for consignment of all the glass it handles which is collected and set aside for recycling
Water use disposal and reuse
The water used during the production process is recycled continually therefore no water is discharged into the municipal drains
The 2016 emissions figures are in line with those for previous years well below the standards laid down
Water use 2012 2013 2014 2015 2016
Water use (gallons per million square feet of finished tiles) 216246 204962 195280 194268 203928
2016 Sustainability Report40
Social Responsibility
Employees
The Florim USA workforce comprises 348 staff employed at the production site the Clarksville and Nashville outlet stores and the Florim Solution offices Of the 348 employees 273 are blue-collar workers and 75 office staff 5 employees are Italians on secondment to the United States Florim USA offers a number of benefits to full time employeesbull health and dental care insurancebull Vision insurancebull life insurance for employees and optionally for family membersbull temporary and permanent disability supportbull employee pension plan
2012 2013 2014 2015 2016
Workplace injuries 50 41 22 29 27
The Employee Assistance Program (EAP) also offers support to employees and their families in the event of psychological difficulty or other problems that can have a negative impact on their quality of life Florim USA supports all the costs of the program
Equal opportunities
Florim USA provides equal opportunities in all employment practices to all qualified employees and applicants regardless of race colour religion gender national origin age disability or membership of the armed forces or any other category protected by federal state or local laws
Health and safety
FLORIM USA is committed to ensuring a safe healthy workplace for all employees It therefore replaces old and obsolete equipment with new technologically more modern machinery and updates safety plans as new information gradually becomes availableAs well as an internal supervisor Florim USA has also appointed a health and safety committee which constantly monitors the plans effectiveness and makes any changes requiredThere are currently 20 plant employees who hold CPRfirst aid qualifications They occupy a variety of positions and work different shifts within the plant and have volunteered to attend training courses sponsored by the company for the award of these qualifications
Training
In 2016 every Florim USA employee attended an average of about 25 hours of training The training provided covered the operating procedures for the new equipment the main safety plans and the procedures for use of existing equipment for new employeesAll new staff undergo specific training for their department focusing on the safety-related aspects of the department concerned as well as more generalized safety training
Some of these themes includebull safe correct use of forklift trucksbull training on work in confined spacesbull shutdownwarning procedures and safe electrical practicesbull safe lifting procedures
2016 Sustainability Report 41
Florim USA ndash (Clarksville Tennessee)
For employees wishing to continue their education Florim USA offers assistance through the Educational Assistance Program It provides aid with the cost of education and textbooks and is available for any employee wishing to study for a technical qualification a diploma or a degreeThe plant staff training and education plan also includes various training schemes at Florim Italy where employees are instructed in the use of new equipment before it is installed at the American plantThroughout 2016 Florim USA will continue to provide a free e-learning course on its website for architects engineers and contractors (AEC) to improve their knowledge of sustainable porcelain stoneware tiles
Employee welfare activities
Florim USA employee picnic - In 2016 the company once again held its annual picnic for employees offering them a wide variety of foods games activities and live shows in an event which provided an unforgettable days enjoyment Within the event participants received prizes in the form of vouchers and gifts
Employee anniversary dinner - 2016 again saw the usual dinner to honour Florim USA employees with 5 10 15 20 or more years of service A special evening event was held in the presence of the Chairman and the other managers to celebrate the loyalty and hard work these employees have contributed during their careers with the firm
2016 Sustainability Report42
Local Community
During 2016 Florim USA continued to provide its support to a number of projects in its local areaSome of the main projects include
Scholarships - As part of its work to support the local community Florim has an established scheme which awards scholarships to deserving students at the Austin Peay State University in memory of Florim Group founder Giovanni Lucchese In December 2016 a delegation of Florim representatives attended a scholarship presentation lunch at the Austin Peay State University hosted by the President of the University
Montgomery County Green Certification Program - Florim USA staff actively participate in the Montgomery County Green Certification Program which aims to help companies learn and implement best practices with regard to safeguarding the environment and environmental resources
Donations - In 2016 the company again made a large number of donationsbull book collection for the Austin Peay State University Employees made a generous donation of used books in good condition for children and young people of the APSU in the hope of further promoting the education of future generationsbull to Community Cares the national organization that promotes the acceptance and social inclusion of individuals with Downs Syndromebull to the Aspire Clarksville Foundation a 501(c)(3) charitable foundation whose mission is to continuously improve the economy and the livability (quality of life) of the community by attracting significant capital investment and expansion by businesses and corporations thereby creating better opportunities and higher paying jobs for residentsbull to the Alzheimerrsquos Association a non-profit voluntary organization dedicated to the care and support of Alzheimers Disease sufferers and research into the condition Its aim is to eliminate the disease through the advancement of research to provide and enhance care and support for all affected and to reduce the risk of dementia through the promotion of brain health
Other activities - Every year Florim USA participates in the United Way Drive initiative to support local non-profit organizations which provide economic assistance and psychological support to persons in difficulty
Florim USA provides regular support to the Salvation Army by collecting canned foods for persons in needIn 2016 the company again organised a canned food collection for Manna Cafeacute in Clarksville TN Manna Cafeacute is a local non-profit organization based in Middle Tennessee with the primary mission of meeting peoples fundamental need for food before encouraging them to permanently change their lives for the better More than 15 of the population in Montgomery County are affected by food insecurity (about 28000 people) The percentage of children affected is about 215 a third of whom are excluded by income from federal programs such as free school mealsFinally donations were made tobull American Lung Association the leading organization working to save lives by improving lung health and preventing lung disease through research and educationbull Cheer for a Cure an organization that gives money directly to afflicting families who have a loved one suffering from cancer and need assistance to alleviate the added financial stressbull Habitat for Humanity Since 1992 Habitat for Humanity in Montgomery County Tennessee has worked with 93 low-income families with more than 210 children to revitalise various parts of Clarksville-Montgomery County by building new homes
2016 Sustainability Report 43
Quality SystemFlorim USA works under a Quality System certified to UNI EN ISO 9001 standards The following are some of the figures in brief
Objective Indicator 2012 2013 2014 2015 2016
Optimisation of control of the production process
Percentage of First Grade Product ()
932 917 940 949 9510
Quality rate () 883 857 893 906 909
Scrap rate () 56 65 48 45 45
KeyPercentage of first grade product ratio between square feet of first grade material and total square feet transferred to stockQuality rate ratio between square feet of first grade material transferred to stock and square feet pressedScrap rate ratio between square feet pressed and square feet of product actually transferred to stock
Other ActivitiesFlorim USA and trade shows
In 2016 Florim USA participated at a number of shows and events including Coverings the AIA Tennessee Convention Hardscape North America Total Solutions Plus Neocon International Pool - Spa and Patio Expo These events targeted at the various categories of industry professionals such as dealers and designers gave Florim USA the opportunity to present its new range of indoor and outdoor products
Design Center
In December 2015 Florim USA opened a design center showroom in Nashville (TN) in a strategic location close to the airport and the city center With a spacious area to host individual CEU presentations and workshops this design center has the potential to be a major resource for local architects In 2016 it was also awarded the ldquoOutstanding Boothrdquo booth prize at the 33rd edition of the Annual Home Decorating and Remodeling Show The location is the ideal place for sharing ideas finding inspiration and putting professionals and architects in touch with each other
Florim Nashville Design Center
2016 Sustainability Report44
GRI International Sustainability Indicators SDGsThe information below illustrates the correspondence between the Florim (Italian companies) 2016 Sustainability Report the GRI-G4 guidelines and the icons of the Sustainable Development Goals (SDGs) definitively adopted by the United NationsA description of the SDGs is available at wwwglobalcompactnetworkorg
GRI indicators
Description Page Reference to SDGs
1 Strategy and Analysis
G4-1 Statement from the most senior decision-maker of the organization 5
2 Organization profile
G4-3 Name of the organization 2
G4-4 Primary brands products andor services 9
G4-5 Location of the organizations headquarters 9
G4-6 Number and names of the countries where the organization operates 9
G4-7 Nature of ownership and legal form 14
G4-8 Markets served 9
G4-9 Scale of the organization 8 8
G4-10 Significant changes regarding size structure or ownership 8
G4-11 Employees covered by National Collective Bargaining Agreement 27
G4-12 Describe the supply chain 16
G4-13Significant changes regarding the organizationrsquos size structure ownership or its supply chain
Reporting process
launched
G4-14 Precautionary principle 22
G4-15 List of external commitments in which the company is involved 22 32 33
G4-16 Associations or interest groups in which the company is involvedwwwflorimit gt
about us gt partnerships
3 Identified material aspects and boundaries
G4-18 Process used to define the report content 6
G4-19 Material aspects 16
G4-20 Boundaries of each material aspect 6
G4-21 Boundaries of each material aspect outside the organizationPartial reporting
(pages 6 16)
G4-22 Explanation of the effect of any restatements of information provided in previous reports 6
G4-23Significant changes from previous reporting periods in the scope boundaries or measurement methods
6
3 Stakeholder engagement
G4-24 List of stakeholders 15
G4-25 Identification of stakeholders 15
G4-26 Stakeholder engagement 6 16
G4-27 Key topics and concerns that have been raised through stakeholder engagement 16
4 Boundary of the Report
G4-28 Reporting period 6
G4-29 Date of publication 2
G4-30 Reporting cycle 6
G4-31 Contacts and addresses for additional information 46
5 GRI Content Index
G4-32 Reporting option chosen 6 7
G4-33 External assurance of ReportThe Report is not
externally assured
2016 Sustainability Report 45
GRI indicators
Description Page Reference to SDGs
6 Governance
G4-34 Governance structure 14
7 Ethics and integrity
G4-56 Values principles standards and norms of behavior 13 16
Economic performance indicators
EC1 Direct economic value generated and distributed 19 25789
EC5 Wages 27 158
EC7 Development and impact of infrastructure investments and services supported 23 24 31 257911
Environmental performance indicators
G4-EN2 Percentage of materials used that are recycled input materials 17 22 23 812
G4-EN3 Energy consumption within the organization 24 781213
G4-EN6 Reduction of energy consumption 17 24 71213
G4-EN7 Reductions in energy requirements of products and servicesPartial reporting
(page 22)71213
G4-EN8 Total water withdrawal by source 17 23 6
G4-EN10 Percentage and total volume of water recycled and reused 17 21 23 612
G4-EN11 Biodiversity 23 615
G4-EN15 Total indirect greenhouse gas emissions by weight 25 3121315
G4-EN16 Total indirect greenhouse gas emissions by weight 25 3121315
G4-EN19 Reduction of greenhouse gas emissions 8 24 1315
G4-EN21 NOx SOx and other significant air emissions 25 31215
G4-EN22 Total water discharge by quality and destination 23 6
G4-EN23 Total weight of waste by type 17 22 3612
G4-EN27 Impact mitigation of environmental impacts of products and services 23 68121315
G4-EN29 Monetary value of significant fines 22 16
G4-EN30 Significant environmental impacts of transporting products and goodsmaterialsPartial reporting
(page 25)111213
Social performance indicators
G4-LA1 Total number and rates of new employee hires and employee turnoverPartial reporting
(pages 17 27)8
G4-LA6 Workplace injury ratesPartial reporting
(page 17)38
G4-LA9 Average hours of training per year per employee 28 48
G4-LA12Composition of governance bodies and breakdown of employees according to gender age group etc
27 58
G4-LA13 Ratio of basic salary and total remuneration of women to men 27 5810
Society
G4-SO1 Operations with local community engagement 12 31 16
G4-SO3 Operations assessed for risks related to corruptionPartial reporting
(page 13)
Product responsibility
G4-PR1 Assessment of health and safety impacts for improvement 23 32
G4-PR3 Type of information about products and services required by the procedures 32 12
G4-PR5 Proceedings relating to customer satisfaction including surveys conducted to measure it 33
G4-PR6 Sale of banned or disputed products 32
G4-PR8 Number of substantiated complaints regarding breaches of privacy 32 16
2016 Sustainability Report46
Your Assessment
You are kindly requested to take a few minutes of your time to give us your assessment and any suggestions to enable us to improve future editions of our Sustainability Report
Click here to send us your feedback
To keep up to date with our business
Spazio CEDIT - interior (Milan)
wwwflorimiten
Florim Ceramiche
Florim4Architects
Florim_ceramiche
Florim Ceramiche spa
Florim Ceramiche
Florim Ceramiche
For any further information please feel free to contact our communications department comunicazioneflorimit
2016 Sustainability Report 47
Premio Lucchese - Florim Gallery (Fiorano Modenese - Modena Italy)
Intrapresaelig Guggenheim Collection - Massimo Bottura in Florim Gallery (Fiorano Modenese - Modena Italy)
Panathlon Christmas Gala - Florim Gallery (Fiorano Modenese - Modena Italy)
2016 Sustainability Report48
White Christmas Party - Florim Gallery (Fiorano Modenese - Modena Italy)
Cersaie - Mario Biondi in Florim Gallery (Fiorano Modenese - Modena Italy)
Dal buio alla luce - Social event at Florim Gallery (Fiorano Modenese - Modena Italy)
2016 Sustainability Report 49
Florim Gallery entrance (Fiorano Modenese - MO)
2016 Sustainability Report52
Florim Ceramiche spaVia Canaletto 24 - 41042 Fiorano Modenese (Modena Italy) - Tel +39 0536 840111 - wwwflorimit
By Florim Ceramiche spaFinancial Department - supervision
Communications Department - editorial coordinationOur thanks to all contributing staff members
Fiorano Modenese (MO) - ITALY May 2017
Contents
5
6
8
9
9
10
11
13
13
14
14
15
16
17
18
18
19
Letter to Stakeholders
Our Sustainability Report
MADE IN FLORIM
Our History
Our Locations
Our Brands
Our Design Service
Our 2016
GOVERNANCE
Code of Ethics
Management System Policy
Corporate Bodies
Corporate Structure
Stakeholders
Materiality approach
REPORTING
In brief
Economic Responsibility
Comments on the Economic Data
Value Generated
21
22
22
24
27
27
30
32
33
35
36
37
38
40
43
43
44
Environmental Responsibility
Certifications
Environmental Management
Energy Management
Social Responsibility
Employees amp Corporate Welfare
Local Community amp Culture
Product Responsibility
Quality System
OUR COMMITMENTS
The promises we kept
The targets we set for ourselves
FLORIM USA
Profile and Economic Responsibility
Environmental Responsibility
Social Responsibility
Quality System
Other Activities
GRI International Sustainability Indicators SDGs
2016 Sustainability Report4
FLORIM stone Marble Statuario and Stone Black
2016 Sustainability Report 5
Welcome to the ninth edition of our Sustainability Report a document which is gaining wider and wider appreciation amongst those who follow the Florim Grouprsquos performance for its synthesis of the companyrsquos many activities in Corporate Social Responsibilities
During the last year we have once again shown a strong commitment to a business approach which goes beyond the achievement of economic results alone and involves social projectsintended to last over time with the secondary benefit of enhancing the image of the Florim name
I believe this document is a true confirmation that despite uncontrollable global environmental uncertainties there are multiple opportunities to keep the high-quality levels that Florim has always achieved
We have made further large investments in our factories in Italy and in the USA and we will continue to invest in the years to come We have given the same level of importance to investments in ourimage adding new showrooms to those already established in Milan to give visibility to CEDIT the brand which has been rediscovered and relaunched this year with a specific exclusive product range
The ldquoGalleryrdquo and the ldquoHealthampTrainingrdquo Center continue to be hives of activity the company continues to hold its doors wide open to young people with the ldquoMaster in Florimrdquo program and the ldquoFondazione Ing Giovanni Luccheserdquo continues to engage in important charitable work
I am very proud to state that all Florimrsquos employees in Italy and abroad are the companyrsquos greatest resource So I would like to say a well-deserved ldquothank yourdquo to all those whose constant hard work sense of belonging and mutual cooperation represent a priceless assets that consolidate over time
Enjoy the report and thank youClaudio Lucchese
Letter to stakeholders
2016 Sustainability Report6
Our Sustainability Report
Methodological Framework and Reporting Perimeter
Writing and distributing its Sustainability Report enables Florim to communicate with its stakeholders with transparency describe the results achieved and set our future goals in an approach based on engagement and continual improvement
Drawn up annually in accordance with the GRI-G4 Guidelines for Sustainability Reports (the G4 edition of the Global Reporting Initiative guidelines) the report issued for the ninth time this year aims to report on the economic environmental and social aspects of the companys operations from a point of view more oriented towards the shared value produced for its stakeholders
The reporting process with in accordance-core compliance level is co-ordinated by Florimrsquos communications department and supervised by the Finance Department with the invaluable assistance of many colleagues especially the staff of the management accounting technical human resources and administration departments The data and information it contains are obtained from the companys IT systems and databases
The Report refers to all the companies in the Florim group on the same principle as the Groups consolidated financial statements The figures provided in the reporting section refer to our Italian location while the fourth section contains a brief Sustainability Report for Florim USA As already stated this Report is intended as an aid to dialogue and therefore the language used is plain and to the point
The 2016 Sustainability Report also published in English will be distributed as follows - provision of a copy to all employees at the Italian and American sites enclosed with their pay stubs- publication of the PDF file on the corporate Intranet and the florimit website- distribution to member companies of the new ldquoAziende Modenesi per la RSIrdquo (Modena companies for social
responsibility) association- mailing to local institutions and the relevant trade union representatives- distribution to the local press and to the specialist press during exhibitions and site visits- distribution to key clients and architects- mailing to the main domestic agenciesauthoritiesassociations involved in issues related to sustainability and the
environment
Florim produciont plant (Fiorano Modenese - MO)
2016 Sustainability Report 7
CEDIT - Storie Collection | Giorgia Zanellato amp Daniele BortottoNamed as Best of the Best at the 2017 Red Dot Design Award
2016 Sustainability Report8
Giovanni Lucchese pioneers the production of extruded clinker tiles and Floor Gres is founded in the heart of the Sassuolo production district
Floor Gres is the first Italian manufacturer to produce single-fired white body tiles
The Swimming Pool Division is established within Floor Gres
Floor Gres is one of the first companies in the world to start the manufacture of porcelain stoneware tiles
Claudio Lucchese son of the founder takes over the reins at Floor Gres after his fathers untimely death
Floor Gres acquires Cerim Ceramiche
Floor Gres and Cerim merge to create Florim
Florim acquires Rex Ceramiche Artistiche
The Project Division forerunner of todays Florim Solutions is created
Incorporation of Florim USA a production and distribution company destined to become a leader on the American market
Florim acquires Casa dolce casa
The Casamood brand is born
A logistics hub is opened in Brazil
The new multifunctional Florim Gallery is opened and the Florim Logistics area is completed at the Florim headquarters The Fondazione Ing Giovanni Lucchese foundation is established
The first Flagship Store is opened in Moscow
The Milan Flagship Store moves to a location in the very heart of the city A new Flagship Store opens in the center of New York
Florim relaunches the historic CEDIT - Ceramiche drsquoItalia brand (which opens its first flagship space in Milan) and FLORIM stone the Groups first brand focusing on the interior design sector
MADE IN FLORIM
Over 50 years of history
Over 1300 employees worldwide
27 million square meters produced every year
406 million Euro turnover
1424 tons of CO2 not emitted in 2015 thanks to the photovoltaic system
It takes more than figures to define a company Today passion innovation a constant commitment to improvement and corporate social responsibility are the core values of a new way of doing businessthe MADE IN FLORIM way
Our History 1962
1967
1976
1981
1984
1990
1992
1994
1995
2000
2005
2006
2011
2013
2014
2015
2016
Watch the Floriminstitutional video
2016 Sustainability Report 9
Our Locations The map shows the grouprsquos headquarters showrooms production plants and logistic hubsFlorim brand products are available from top international customers and importers
Our Brands
Floor Gres is the brand specifically for innovative architectural projects The Floor Gres product range meets all the many and varied needs of contemporary architecture in terms of design and technical capabilities and environmental standards
Rex is the brand which denotes stylistic excellence with products inspired by precious natural materials (wood marble and stone) coordinated floor and wall coverings in which the surfaces interact to generate a new language in home design
Cerim is the brand that focuses primarily on color and on decoration Coverings designed on an integral basis to make the most of all parts of the home and offer solutions that adapt to the most diverse interior design contexts
Casa dolce casa and Casamood is the brand intended for high-end architecture and interior design and offers attractively blended colours and surfaces drawn from nature for the creation of warm interiors A range of matching colours and surfaces that combines porcelain stoneware with other types of materials Architectural design effects are blended with the language of interior decoration to create new types of relationships
CEDIT - Ceramiche drsquoItalia embodies the dialogue between art craftsmanship and technology The brand that shapes ceramic matter in the service of creativity allowing leading names of our time to express themselves to their full potential Large designer slabs that renew the concept of architectural space
FLORIM stone is the brand that combines performance and practicality with the utmost personalization of spaces Large porcelain stoneware slabs at the service of interior design professionals delivering creative flexibility with outstanding technical performances and appearance values
Florim USA is the brand of the American subsidiary its porcelain stoneware tiles for residential and commercial use manufactured in the plant at Clarksville (Tennessee) are tailored to suit the tastes of the largest possible segment of the North American market
FLORIM USASite production plant and logistics hubClarksville TN (USA)
Flagship StoreNew York NY (USA)
Logistics hubParanagrave (BRAZIL)
OceSingapore (SINGAPORE)
Flagship StoreMoscow (RUSSIA)
Site production plant and logistics hubFiorano Modenese (Modena ITALY)Production plantMordano (Bologna ITALY)
- Flagship Store- Spazio CEDITMilan (ITALY)
2016 Sustainability Report10
Our Design ServiceAs well as the product itself Florim offers a unique level of technical support throughout the various design phases From the feasibility study to the final installation Florim Solutions works side by side with the architect providing skills and experience whenever the style and performance of porcelain tiles become fundamental to the project In the age of speed and the digital revolution the company has also created an integrated web platform to give its professional partners unbeatable service Exclusive events visibility for projects free training meetings and specific competitions are just some of the services offered by Florim4Architectscom
Expo Azerbajan Pavilion winner of the Florim4Architects ldquoProject of the Yearrdquo competition
2016 Sustainability Report 11
Our 2016In this section we focus on the latest news from the Group covering a wide variety of aspects but all confirming the importance of Florims large slabs and once again underlining the centrality of innovation for the companys business
New brands
In April Florim chose the Salone Internazionale del Mobile a major event for the global design community for the relaunch of the CEDIT - Ceramiche drsquoItalia brand The brand which has always had links with leading artists designers and architects has achieved a superlative creative standard over more than fifty years of experimentation with materials and stylistic research in ceramic design CEDIT is returning to the forefront of Italian manufacturing in partnership with some of contemporary Italys top creative names Its new identity is a fine blend of Craftsmanship and Innovation expressed on the large slabs produced by Florim technology December saw the official opening - in the heart of Milan - of the first Spazio CEDIT the tangible expression of an innovative display concept created to convey the brands philosophy to the world
The brand created to explore new application solutions reaching beyond the conventional construction concept is called FLORIM stone Launched at Cersaie - the biggest ceramics industry show - this brand combines the outstanding performances of porcelain stoneware with the utmost personalisation of spaces The dimensional and functional plus factors of latest-generation large slabs allow stoneware to be used in a versatile customized way not just as a wall and floor covering but also for tops and furnishings (tables kitchen worktops and bathroom counters doors and fireplaces are just some of the possible applications)
New look
A busy year partly due to the refurbishment of the Fiorano Modenese headquarters As well as the new gatehouse the faccedilade of the office building was also restyled bringing it up to date with an all-white lookAn innovative modification at the technological state of the art was made to the raw material shed with a ventilated faccedilade of almost 1900 msup2 of Magnum Oversize large slabs The installation reproduces the ldquoArcheologierdquo collection (designed by artist Franco Guerzoni for CEDIT) and the lake of Vernago in Italys Alto Adige region (photo by Vanni Borghi) A latest-generation project leading the way in technology safety and maintenanceLast but not least a new barrier was also designed and constructed to separate the Florim property from the SFrancesco road It took 3 months to erect a boundary fence of about 340 meters of double-sided porcelain stoneware slabs 180 cm high and 265 cm wide supported by a steel frame With a total of 1122 slabs the fence was designed to withstand weather earthquakes and the forces generated by traffic passing at high speeds Installed at different angles the slabs create attractive effects with light and shade demonstrating the importance of sophisticated aesthetics to the companys identity
New Awards
Florims large slabs are the featured products in the various awards received and have been assigned one of the most important accolades in the design world with an Honourable Mention at the XXIV edition of the ADI Compasso drsquoOro awards
Just a few months after its launch the CEDIT brand also received major awards at the global level the NYCxDESIGN Award in New York the Hospitality Design Awards in New York ldquo100 Best of 2016rdquo at the Archiproducts Design Awards 2016 and the Best of the Best (April 2017) in the Design Product category at the coveted German Red Dot Design Award
More recognition came from the Emilia-Romagna Regions 2016 awards for Corporate Social Responsibility projects run in the local community A prize in the ldquoBusiness and Educationrdquo category was assigned to the Master in Florim project which aims to give young people the skills required for sustainable development
Learn moreabout CEDIT
Learn moreabout FLORIM stone
2016 Sustainability Report12
In the age of digital transformation Florim still believes in the importance of creating opportunities for meeting and exchanging ideas and in 2016 more than 12000 people came to the Florim Gallery (a multi-purpose space of 9000 msup2 at the Fiorano headquarters) Events of social usefulness workshops community projects and business occasions our training events and hospitality staff were busy on many different fronts It was also a major year for off-site events The Florim Flagship Store in Milan and the just-opened New York Flagship Store hosted more than 3200 people at events for architects and designers supported with important partnerships with POLIdesign and leading publishersFlorim also chose the world-famous Peggy Guggenheim Collection in Venice as the location for two exclusive events to highlight the partnership agreement signed with Guggenheim Intrapresaelig A dinner in the wonderful setting of the museums panoramic terrace followed speeches by distinguished guests Ettore Mocchetti Martino Gamper Domitilla Dardi Giorgia Zanellato Daniele Bortotto Franco Guerzoni and Benedetto Fasciana The final event of the year was held for the employees with a ldquoWhite Christmas Partyrdquo evening at a Florim Gallery decorated for the festive season
A year of Florim events
LrsquoArte del Design - Florim event at the Peggy Guggenheim Collection (Venice)
2016 Sustainability Report
View the Florim eventat the Guggenheim
2016 Sustainability Report 13
GOVERNANCE
Code of EthicsThe groups governance plays a central role in the responsible development of its business ensuring ethical transparent management of its operations with its stakeholders interests always in mind
After approving the Governance Model compliant with the provisions of Italian Legislative Decree 2312001 the Florim Board of Directors signed and promoted the corporate Code of Ethics (revised in June 2016) which has become an integral part of Florims business and is accepted by every new employee supplier and agentTo guarantee the application of and compliance with its contents a Supervisory Board was established to detect any breaches of its provisions All stakeholders can also contact the Supervisory Board (organismodivigilanzaflorimit) for further explanations regarding the interpretation and application of the corporate Code of Ethics as described on the corporate websiteThe following is an extract from the rules of conduct which govern the way we do business
Our mission
To manufacture ceramic tiles and materials for multiple uses and offer the most appropriate solutions for both interior design and architecture To constantly prioritise environmental sustainability attempting to satisfy the needs of customers and to create value for shareholders employees and the local community in compliance with the ethical principles and rules of conduct set out in the Code of Ethics
Our vision
To be at the cutting edge of technical and design innovation in ceramics by developing materials and production methods that position us as a constant benchmark for customers architects and competitors
Our values
Honesty and Respect all internal and external relationships must be based on honesty and respect for rules and dignity of the individual
Corporate Social Responsibility corporate social responsibility must be promoted through measures and practices adopted to support the local environment and community
Individual Responsibility everyone must be aware of the worth and consequences of their own actions
Quality and Innovation excellence must be pursued by improving products processes and skills to promote corporate success
Transparency intentions and positions must be expressed openly and clearly without misunderstandings or misrepresentation to build lasting relationships based on trust both inside and outside the company
Courage a moral strength which enables us to undertake and deal with changes difficulties and challenges to benefit from all the opportunities they offer
Feeling of Belonging feeling proud to be a part of one big team made up of the company associates customers and suppliers
Management System Policy
To achieve greater and greater transparency in its reporting the company has drawn up guidelines for its quality environment safety and energy management system Read more
2016 Sustainability Report14
Corporate BodiesFlorim Ceramiche spa is a family-run business with fully subscribed paid-up share capital consisting of 50000000 ordinary shares with a face value of 1 Euro each The capital is 100 owned by the holding company FinFloor spa with registered office in Fiorano Modenese which is in turn indirectly owned by the Lucchese family through Fin-Twin spa
The Board of Directors has 11 members
CLAUDIO LUCCHESE Chairman
DONATO BRUNI Deputy Chairman
MARIADELE LUCCHESE Director
ANNA LUCCHESE Director
FRANCESCA LUCCHESE Director
GIOVANNI LUCCHESE Director
The Board of Directors has a mandate of one year and new elections will coincide with the approval of the financial statements The Board of Statutory Auditors is composed of three members whose term of office is three years from their appointment on 1252016 until approval of the 2018 financial statements The financial statements of Florim spa and the consolidated financial statements of FinFloor spa and Fin-Twin spa are audited and certified by Deloitte spa
Corporate StructureThe changes to be noted since the previous financial statements include the incorporation of ldquoMordano 4 srlrdquo and amalgamation by acquisition of Maker srl in Florim Ceramiche spa
KRONOS 2 CERAMICHE spaShare capital euro 1646799
Fondazione Ing G LuccheseEndowment euro 60000
FABBRICA delle MATERIE srlShare capital euro 10000
EDIL FLOOR surlShare capital euro 9812681
ISABELLA srlShare capital euro 100000
FI HOLDING IncShare capital USD 50000
100
10
100
30
9667
100
1
1
99
99
100
FIN TWIN spaShare capital euro 540800
FINFLOOR spaShare capital euro 10500000
542810
FLORIM CERAMICHE spasingle shareholder companyShare capital euro 50000000
100
FLORIM BRASIL LtdaDISTRIBUICcedilAtildeO DE CERAcircMICAS Ltda
Share capital R$ 46100000
FLORIM RUSShare Capital 100000 Roubles
FLORIM USA incShare capital USD 51865541
FLORIM SOLUTION IncShare capital USD 845943
100
MORDANO 4 srlShare capital euro 100000
85
FLORIM FAR EAST PTE LtdShare capital S$ 10000
100
ERMES GIUSEPPE FERRARI Managing Director
GIOVANNI GROSSI Managing Director
OSCAR ISEPPI Managing Director
DORVAN SAZZI Managing Director
STEFANO TORRENTI Managing Director
2016 Sustainability Report 15
StakeholdersStakeholders are all individuals and groups who may influence or be influenced by a companys operations in terms of policies products and working processes shareholders employees customers and consumers suppliers local government the local community banks and trade unions
Employees and Trade Unions
Florim makes the following commitments to its employees
bull to guarantee equal opportunities fair pay and professional growth
bull to reward its human resources on the basis of transparent meritocratic criteria
bull to create safe working environments and processes
bull to guarantee transparency and clarity in contract conditions
bull to encourage dialogue and internal communications
Customers and Consumers
In dealing with its (retail) customers Florim is committed to
bull creating a relationship of trust as a stable basis for business
bull guaranteeing clarity in contracts and prices
bull guaranteeing the reliability of its products and developing customer service
bull offering innovative safe environmentally sustainable products
bull providing a diversified offering with services with high value added
The overall aim is also to satisfy the expectations and demands of the final consumer
Developers Architects and Interior Designers
To meet the needs of developers Florim is committed to
bull offering state-of-the-art solutions in terms of environmentally sustainability technology and design
bull establishing and fostering relationships with partner professionals
bull providing consulting and technical experience from the project concept through to installation
bull supplying turnkey solutions
Local Communities and Local Government
In its relationships with local communities and local institutions Florim is committed to
bull guaranteeing dialogue cooperation and transparency
bull giving value back to the local communities in the areas where it operates
bull continually improving the environmental performances of processes
bull researching developing and using the most sustainable technologies
bull making an economic contribution to local sporting and social projects for children and young people
Suppliers
When selecting its suppliers Florim pays close attention to companiesrsquo CSR practices Florims relationships with its suppliers are based on compliance with the values of its code of ethics otherwise contracts are automatically terminated Florim also guarantees certainty in payment times and compliance with contract terms provided the goods and services contracted are delivered as agreed
ERMES GIUSEPPE FERRARI Managing Director
GIOVANNI GROSSI Managing Director
OSCAR ISEPPI Managing Director
DORVAN SAZZI Managing Director
STEFANO TORRENTI Managing Director
2016 Sustainability Report16
Materiality ApproachIn 2015 the company began an internal analysis process based on the materiality principle in order to identify the sustainability issues of relevance both for the Group (including Florim USA) and for all stakeholders Materiality is the threshold above which a topic becomes sufficiently important to be included in the report In fact organizations are faced with a large number of topics on which they could report Relevant topics and indicators are those considered important for reflecting the organizations economic environmental and social impacts or which influence the decisions of its stakeholder and which therefore potentially merit inclusion in the report In accordance with the GRI ndash G4 Guidelines Florim has analyzed and identified relevant topics which were assessed by the working team which drafted the Sustainability Report on the basis of discussion with the main stakeholders The findings which emerged were supported by a qualitative survey external to the companys context examining an analysis of the press gallery (more than 650 articles) competitors Sustainability Reports the Emas Study of the Fiorano and Sassuolo Ceramics District and the GRI document ndash ldquoSustainability Topics for Sector What do Stakeholders want to knowrdquo
In the chart below the aspects found to be most important appear in the top right-hand corner and constitute a strategic priority for the Group The topics in the bottom left-hand corner such as biodiversity prevention of corruption and absence of discrimination are less relevant because they are easy for both the organization and stakeholders to manage and no problems have ever been reported over the years Similarly the protection of human rights is now taken for granted since Florim complies strictly with all the provisions of the National Employment Contract
Importance for stakeholders
Importance for Florim spa
low
m
ediu
m
high
low medium high
Biodiversity
Indirect economic impacts
Prevention of corruption
Market share
Absence of discrimination
Sustainable transport
management
Protection of Human Rights
Environment and safety
Water saving
Energy efficiencyRaw materials
Diversity and equal opportunities
Transparency of financial and other
information
Ethical supplier
management
Investments in the local community and social welfare
Direct and indirect environmental
impacts
Green products and
services
Economic performance
Quality of products offered to customers
Regulatory compliance
Development of human resources
and training
ENVIRONMENT
COMMUNITY
EMPLOYEESASSOCIATES
ECONOMIC PERFORMANCE
PRODUCT RESPONSIBILITY
HUMAN RIGHTS
2016 Sustainability Report 17
FinFloor consolidated (in thousands of Euro) 2012 2013 2014 2015 2016
Net earnings 315344 325853 329533 374094 406759
EBIDTA 59608 72986 84395 98115 107186
Operating result 35717 50996 58508 66255 71028
Gross cash flow 52710 68312 83274 97268 109148
Net profit 26103 35732 36433 43324 49347
Net financial indebtedness (127730) (96500) (54524) (27326) (12508)
Final inventory 95514 84432 90283 92795 96721
Net shareholders equity 186905 218847 276916 332721 369937
Total investments 32572 48780 41584 34215 53531
2012 2013 2014 2015 2016
Waste produced (t) 30228 21170 22300 30862 34423
Recycled third-party waste (t) 4028 4190 1721 2570 5627
Total water consumption (msup3) finished product (t) 075 075 078 069 071
Recycled water percentage 100 100 100 100 100
Self-generated energy in relation to consumption 67 68 62 65 75
Investments in environmental management (euro000) 13617 2493 1995 465 6400
2012 2013 2014 2015 2016
Number of employees at 3112 1037 992 984 982 987
Total number of training hours 14690 9124 9056 7176 10606
Number of training hours on environment and safety 7572 4514 4200 3008 2489
Number of workplace injuries 63 62 74 56 43
Environmental and social profile figures refer to Florim Italy for Florim USA please see the relevant section (from page 37)
REPORTING
In brief
Economic Profile
Environmental Profile
Social Profile
2016 Sustainability Report18
Economic Responsibility
Comments on 2016 Economic Data
The Groups 2016 results were again good from every point of view
Compared to the previous year turnover increased by 87 leading thanks to careful management of production costs to an EBITDA of Euro 1071 million equivalent to 263 of turnover and a profit after tax of Euro 493 million
The companys financial data also significantly improved with a net financial position of Euro 125 million compared to Euro 273 million at the end of 2015 in spite of record technical investments of Euro 535 million and financial investments of Euro 11 million
Once again underlying the results achieved were large investments in latest-generation machinery and technologies painstaking research to develop materials with exceptionally high technical and design content human resources and projects for the increasingly direct promotion of Florims image and quality standard
Investments
The technical investments made in 2016 amount to Euro 535 million while Euro 11 million was spent on reacquiring 100 ownership of Maker srl followed by its amalgamation with Florim spa on 31 December The most important industrial projects included the continuation of the work on the Mordano plant which involved investments of Euro 26 million for the restructuring of the raw material preparation area and the doubling of production capacity for traditional porcelain stonewareThe investments of US$ 18 million at Florim USA were utilised to complete the renewal of the raw material preparation area and construct a new building for the technical organizationFinally about 9 million Euro was invested at Fiorano on various production line modernization projects
A creative hub for design style and new trends Milan once again confirms that it is the ideal setting for Florims investments and the opening of the all-new ldquoSpazio CEDITrdquo confirms the companys determination to strengthen its bonds with design professionals working in high-end interior design The culture of beauty art architecture and design are all integral to the genetic make-up of CEDIT ndash the historic Italian brand relaunched by Florim in 2016 ndash and dominate the display areas and the first six ceramic covering collections styled by famous names on the contemporary creative sceneOn two levels with a total floor area of more than 200 msup2 the space maintains the same stylistic identity as the one at Fiorano Modenese since they are both constructed to an architectural design intended to be replicated in CEDIT customers showrooms worldwide
Spazio CEDIT Watch theinauguration video
2016 Sustainability Report 19
Economic Value Generated and Distributed
The figures for the economic value generated and distributed provide a simple clear explanation of how Florim has created wealth and redistributed it to its stakeholders The table below contains the data from Florims 2016 financial statements approved by the Board of Directors on 30 March and certified by external auditorsThe economic value directly generated is represented by the total earnings for 2016 while the economic value distributed includes the costs incurred for suppliers and employees payments to the state (taxes) and the donations which had positive repercussions for the community to which Florim spa belongs
Heading 2014 2015 2016
Revenues 253125 269855 302521
Direct economic value generated 253125 269855 302521
Operating costs 135735 150951 168809
Employee wages and benefits 56985 58149 62418
Payments to providers of capital 7413 6399 11903
Payments to government 15738 13162 15382
Community investments 221 212 240
Economic value distributed 216092 228873 258752
Economic value retained 37033 40982 43769
KeyRevenues net sales plus revenues from financial investments and sale of assetsOperating Costs payments to suppliers non-strategic investments royalties payment facilitationsEmployee wages and benefits employee wages and benefits per employees (current payments)Payments to providers of capital all payments to the organizations providers of capitalPayments to government gross taxes and dutiesCommunity investments voluntary donations and investments in the communityEconomic value retained calculated as economic value generated less economic value distributed
The data in the table are in thousands of Euro and refer to the consolidated financial statements of the Italian companies only
KBIS (USA) - detail of the stand created with ldquoI Classici di Rexrdquo
2016 Sustainability Report20
Casa dolce casa ndash Argille 20 Collection
2016 Sustainability Report 21
Environmental ResponsibilityEffective environmental policy management energy saving and emissions reduction are amongst Florims strategic sustainability objectives
Our green projects in figures
2 highly-regarded process certifications
ISO 14001 (ENVIRONMENT)and ISO 50001 (ENERGY)
849873 MWh is the amount of electricity the
company succeeded in producing in-house during 2016
2 departments (marketing and communications)
engaged on digitizing advertising tools
8462 tons of CO2 NOT emitted
CO2
100 is the percentage of wastewater recycled
16000 msup2of photovoltaic panels covering
an area of 30000 msup2
75 is the percentage of the electricity consumed which is
produced in-house
4 latest-generation industrial kilns installed in
the last 3 years
4 different types of environmental product
certification
2 cogeneration plants to increase energy saving
and efficiency
1 laboratory for the development of contemporary design projects with a specific focus on the materials green
content
100is the percentage recycling of
industrial greenware waste in the production process
2016 Sustainability Report22
Certifications
System and process certifications
UNI EN ISO 14001TUumlV has awarded Florim the highly-regarded UNI EN ISO 14001 voluntary certification which confirms its compliance with a series of internally certified procedures intended to improve the internal environmental management system The decision to seek this certification springs from the desire to reconcile quality with efficiency and productivity while protecting the environment and community in which the company operates
UNI EN ISO 50001Thanks to a careful energy management policy and aided by the latest investments in the production area also intended to improve energy efficiency Florim was the worlds first ceramics manufacturer to obtain ISO 50001 certification of its Energy Management System
In addition to its environmental certifications Florim has also been awarded prestigious AEO (Authorized Economic Operator) status
Further to a lengthy and demanding audit process by the Customs Authorities in 2016 Florim was awarded AEO certification the first company in the Province of Modena to receive this major form of approval Authorised Economic Operator status guarantees the companys absolute compliance with customs and security requirements in its foreign trade
Environmental Management
Waste 2012 2013 2014 2015 2016
Total waste produced (t) 30228 21170 22300 30862 34423
Non-dangerous recyclable waste (such as paper and cardboard fired scraps plastic glass and wood) ()
989 982 985 991 989
Non-dangerous disposed-of waste (such as the waste picked up by the motor sweepers) ()
02 04 02 02 02
Dangerous recyclable waste (such as spent oil batteries and monitors) ()
00 01 01 01 00
Dangerous disposed-of waste (such as spent lime) () 01 13 12 07 09
Third-party waste recycled within the production process (t) () 4028 4190 1721 2570 5627
Besides recycling greenware waste from its own production cycle (not included in the table because the amount cannot be calculated) Florim also recycles third party waste
Florims operations have always been oriented towards optimization of impact on the local community and environment Thanks to the work of its research laboratories the support of all staff and the recent investment plans tangible results have been achieved The data provided below reveal that in spite of an increase in production of 8 compared to the previous year consumption remains low The companys commitment to environmental protection is all-inclusive and also comprises a focus on the district within which it operates One example is the total removal of all asbestos cement from the Fiorano Modenese plant and the creation of the new recycling station opened in 2015 and donated to the Local Authority as a public serviceAs in previous years during 2016 Florim was not fined for any breaches of environmental regulations or laws
Florim recycles and optimises within the production process all greenware scraps dust residues from filters and sludge from the process and rectification wastewater treatment system The waste produced is detailed in the table the significant differences between years are due mainly to the major demolition and subsequent reconstruction works undertaken at the Italian plants
Waste Management
2016 Sustainability Report 23
Water Resources
No environmental impact of wastewater discharges is specified since all the water from the production cycle is completely reused (100) All other effluents comply with legal requirements
The figure states the total cubic meters of water used per ton of finished product The water used in the Fiorano production process is drawn from private company-owned wells with water from the public main only used for non-industrial purposes The Mordano plant is supplied by an industrial water main Water use is measured by means of meter readings Four highly innovative dry rectifying plants have gone into production at Mordano since 2015 enabling the company to eliminate the physicalchemical treatment of the water used in the rectification process
WATER USE
2012
08
2013
08
2014
08
2015
07Total water consumption (msup3) finished product (t)
07
2016
All packaging used for Florim materials is made from recycled paper and parts of the coverings used to protect pallets of finished products consist of recycled plastic Whats more all the packaging used (boxes cardboard shrink wraps pallets etc) can be completely recycled by the end user The latest investments made include new eco-friendly packaging machines increasing the number of these machines installed to 15 These plants completely eliminate waste due to leftover inventory saving significant amounts of cardboard
Packaging and Coverings
As the materiality assessment states Florim has no significant impacts on the biodiversity of its local area since the company is located inside the Fiorano Modenese ceramics manufacturing district at least 5 Km from the nearest nature reserve at Salse di Nirano Florim takes special care over the choice of the raw materials used for its tile body mixes of which it is required to provide documentation guaranteeing compliance with the European Directives protecting wild birds (EU Dir 79409EEC) and habitats (EU Dir 9243EEC) and the United Nations Convention on the protection of biodiversity It has also introduced a software program - used at the 3 production plants (Italy and the USA) - for the management of data on the origin of raw materials such as quarry location distance from the factory recycled content declaration technical safety and radioactive content data sheets and the expiry of the quarrying permit issued by the government
Raw Materials and Biodiversity
2016 Sustainability Report24
Energy Management
There is no disputing that large amounts of energy are required to power the production processes of ceramic tile plants with consequent direct and indirect impacts on the local area and the environmentThe main indicator used to measure plants energy performance is the mean specific total energy consumption (TEJ) measured in GJt of product transferred to stock As the table below shows this figure is obtained by adding together heat consumption (NGJ) and electricity used (EEJ)
Parameter ndash Definition Unit of measurement
2012 2013 2014 2015 2016
NGJ Mean specific natural gas consumption in relation to the unit of weight of finished product transferred to stock
GJt 557 571 576 578 598
EEJ Mean specific electricity consumption in relation to the unit of weight of product transferred to stock
GJt 111 108 111 108 107
TEJ Mean total specific energy consumption in relation to the unit of weight of product transferred to stock
GJt 668 679 686 685 705
Self-generated electricity as a proportion of consumption
67 68 62 65 75
With two cogeneration plants (for the combined in-house production of heat and electricity) and 16000 msup2 of photovoltaic panels the company certainly sets a new benchmark for the entire ceramic tile industry 2016 saw the replacement of the Fiorano turbine set (the main component of the cogeneration plant) while the one in Mordano was kept in operation 247 factors which led to a 10 increase in in-house electricity production in relation to consumption To provide a clearer idea of the scale of the achievement the amount of electricity the company generated in-house in 2016 (849873 MWh) would cover the average annual consumption of about 37000 households (With consumption per household of 229 MWh - data from the latest ISTAT survey in 2012ndash calculated on the Italian average)
Photovoltaic Plant
kWp kWh produced kg of CO2 not emitted
270021 15937250 8462680
Good Practice
The head office organizations are also optimizing paper and energy consumption In addition to issuing and distributing the energy saving handbook for its offices the company is also trying to maximize savings on the raw material used and specifically the use of paper Internally the company only purchases reams of paper which carry environmental certification and the paper used in offices is collected separately for proper disposal Externally the company distributes a system of merchandising products made mainly from recycled paper and encourages the gradual digitization of its marketing tools as well as publishing all its catalogues in digital format on its Internet sites Florim offers its distributor companies an innovative digital touch screen tool with the pdf versions of the catalogues and other tools for the final consumerIn 2016 Florim decided to adopt a new payslip distribution procedure introducing an online processing system As well as providing employees with new functions and greater operating flexibility thanks to this system the company no longer prints out the monthly payslips saving paper ink and energy The scheme initially involving all office workers has the ambitious target of also including the staff of the Fiorano and Mordano plants
The 16000 square meter photovoltaic plant received recognition from GSE (Energy Management Services) as one of the most innovative installations of its type and from its commissioning (October 2011) up to December 2016 it produced the following results
2016 Sustainability Report 25
Atmospheric Emissions
The industrial facility emits greenhouse gases basically CO2 from the following main sourcesbull combustion from the burning of fossil fuels (such as natural gas)bull processes from the minerals in the raw materials any organic matter in the clays used and any organic additives in tile body mixes
In order to comply with Directive 200387EC (ETS - Emission Trading Scheme) Florim has been reporting and certifying its CO2 emissions since 2013
CO2 emissions 2013 2014 2015 2016
CO2 emissions (t) 102728 103462 111862 132960
CO2 emissions (t) Finished product (t) 033 033 033 035
Emissions from the production cycle 2013 2014 2015 2016
Particulate material (gmsup2 finished product) 223 130 098 118
Lead (gmsup2 finished product) 000 000 000 000
Fluorine (gmsup2 finished product) 014 018 013 012
The increase in CO2 is due mainly to the large increase in the square meters produced (+ 8) and the 247 use of the cogeneration plant However it should be noted that the cogeneration plant provided a 10 increase in in-house electricity generation with lower CO2 emissions than electricity purchased from the grid produced mainly using fossil fuels (source ISPRA Fattori di emissione atmosferica di CO2 e sviluppo delle fonti rinnovabili nel settore elettrico Rapporti [Atmospheric CO2 Emission Factors and Development of Renewables in the Electricity Sector Reports] 2122015)The ratio between CO2 emissions and tons of finished product produced increased because in 2016 the sale of spray-dried material to other companies rose compared to the previous year (emissions from this phase are included in the emissions count but there is no corresponding output of finished product)
In a change from previous years the new GRI-G4 guidelines also require reporting of nitrogen oxide and sulphur oxide emissions Nitrogen oxide (NOx) emissions are within the limits permitted under the integrated environmental authorisation Sulphur oxide (SOx) emissions are not reported here since this figure is not required by the IEA
Transport
The materiality study reveals that transport is a significant factor for both stakeholders and Florim itself The company is not able to measure the impact of transportation of finished product on the local area since all shipments are ex-works However Florim which has been introducing electric vehicles to replace its oldest most obsolete unleaded petrol forklifts for years now has further optimized the handling of materials thanks to the new highly-automated logistics hub created at the via Canaletto location In 2016 about 53 of the vehicles used on the companys premises were electric with no direct greenhouse gas emissions
2016 Sustainability Report26
CEDIT ndash Creative Composition
2016 Sustainability Report 27
Workforce Composition
In 2016 the workforce included 27 people with disabilities 6 women and 21 menBearing in mind the job descriptions arising from the specific industrial sector the breakdown between men and women is in line with the industry average Male office workers and executives earn an average of 10 more than women for jobs of equal responsibility Among blue-collar workers the difference is 7 The company had a total of 29 foreign employees 24 at Fiorano and 5 at Mordano
Manager Executive Office worker
2013 2014 2015 2016 2013 2014 2015 2016 2013 2014 2015 2016
Women 2 3 3 3 3 1 1 1 137 142 133 149
Men 18 21 20 18 21 24 25 28 127 132 128 132
Total 20 24 23 21 24 25 26 29 264 274 261 281
Office ancillary Blue-collar worker Total
2013 2014 2015 2016 2013 2014 2015 2016 2013 2014 2015 2016
Women 18 16 25 19 226 219 212 196 385 381 375 368
Men 64 68 79 64 376 358 356 377 607 603 607 619
Total 82 84 104 83 602 577 568 573 992 984 982 987
Social Responsibility
Employees amp Corporate welfare
Its employees are the heart and soul of Florim they provide its character and its DNA Since 2009 when the current major economic crisis began Florim has undertaken a number of income support programs for its workforce Below we summarise some of the ongoing programmes and others run in 2016bull Ending of the Income Support Program for the Mordano plantbull Agreement with Sassuolo Hospital under which Florim employees and their family members enjoy discounts and shorter waiting times for specialist examinations and outpatient diagnostic tests performed on a private basisbull Special agreements with local health facilitiesbull Tax advice at special rates bull Special terms for banking services with financial consultants on-sitebull Discounts on the purchase of Florim products for employees homesbull Free entry to the Peggy Guggenheim Collection in Venice for employees and concessions for family membersbull Free provision of water and mineral salts in the plants during the summerbull Distribution of fuel vouchers to employees for the Christmas holidays
Summer Play Schemes and Cregraveches
In 2016 the summer play schemes for the children of employees at Fiorano and Mordano were continued for the fifth year in succession Seven different centers across the area between Modena and Bologna hosted 85 children (twice the number of the previous year) the company paid the fee for two weeks attendanceWhats more since 2013 the company has negotiated special terms with local cregraveches which now offer a number of places for employeesrsquo children at a reduced fee
2016 Sustainability Report28
Human Resources Management Policies
In July 2015 on renewal of the in-house supplement to the national employment contract the Management introduced a new phase in its relations with the Trade Unions with the aim of continuing and improving the good relationships enjoyed for decadesThe new company contract applied for all employees at the Fiorano headquarters includes more facilitations for part-time working the willingness to allow flexitime where feasible and the commitment to invest in staff training in order to generate full benefits from intellectual capital The company and the trades unions agreed on a plan to improve efficiency fundamental for maintaining the current level of competitiveness by establishing improvement in Production Efficiency and EBITDA as criteria for the payment of the new Performance Bonus The individual Attendance Score is considered together with these parameters The 2016 Performance Bonus in its first year of application was 20 higher than that paid in 2015 In addition in response to employees requests the Company increased the number of approved canteens extending the choice available and also introduced weekly laundering of work clothing for all production workersWith regard to applications for severance pay advances the Company confirms its commitment to continuing the policy implemented so far
Training
Florim believes that in-house training plays a key role in the companyrsquos development and provides a tool for stimulating and fulfilling the potential of its human resourcesMore than 10600 training hours were provided in 2016 to 847 people with an average of more than 11 hours of training per employee New projects included a 6-month on-line English language course which attracted a large number of participants and two highly structured training courses for the sales division and the communication department A retraining program for workers at the Mordano plant was also completed it comprised 4 technical courses attended by 31 people for an average of 13 hours per person Another new entry for 2016 was an innovative procedure for acquiring information about training needs using an on-line questionnaire available to all employees as well as line managers specific recommendations The Master in Florim project is discussed in depth in the specific section
Health and Safety
Florim was the first Italian ceramics manufacturer to receive BS OHSAS 18001 (Occupational Health amp Safety Assessment Series) certification from TUumlV this international standard certifies the implementation of an internal management system oriented towards occupational health and safetyThis major award confirms the companys constant commitment to the well-being of its employees Every year in addition to engineering inspections and machinery maintenance a number of hours of safety training are organised to raise awareness among workers and supervisors Specifically in 2016 2849 hours were dedicated to safety training and a significant reduction in injury rates was recordedMoreover BLSD refresher courses are continuously held for the team of Florim employees trained in first-aid operations and the use of the defibrillators available on site
2012 2013 2014 2015 2016
Number of workplace injuries 63 62 74 56 43
2016 Sustainability Report 29
The Master in Florim organized for the fourth time in 2016 is a vocational training project which aims to bridge the gap between education (high school or university) and the world of work The program which is one of the companys Social Responsibility projects sets out to help young people to get to know the company through a well structured work experience plan It offers a distinctively northern European approach with a method which alternates classroom teaching with internships in the various areas of the company Participants new university or high school graduates specialising in various subjects all below 30 years of age are therefore able to gain hands-on experience of all Florim departments from RampD to the production process and product distribution for an all-inclusive vision The MASTER courses ambitious aim is to match the individual participants talents with the companys real needs At the end of each edition the company hires all or some of the selected candidates enabling it to acquire new skills new experiences and new energy
Master 40 in figures
20 young people taking part6 months of training13 external lecturers264 hours of classroom teaching392 hours of practical training4 company visits (Ferrari Tetrapak Cremonini and Ducati)50 days of work experience on rotation involving 15 departments1 month of project work
The projects prestige is enhanced by its economic context since Florim pays the young participants for the entire period and its aim is to deal with the thorny problem of youth unemployment The Master has won approval from various faculties at major Italian universities The project was also a winner in the Emilia-Romagna Regions 2016 awards for Corporate Social Responsibility projects run in the local community A prize in the ldquoBusiness and Educationrdquo category was assigned to the Master project which aims to give young people the skills required for sustainable development
Master in Florim
2016 Sustainability Report
Watch the videoof the 4th edition
2016 Sustainability Report30
Local Community amp Culture
This chapter describes a number of programs Florim runs for the local community in the area where it originated and where it has been working for more than 50 years
Politecnico di Milano
Since the 20052006 academic year Florim has been a partner sponsor of a large number of Postgraduate Courses run by POLIDesign the Politecnico di Milano consortium which organizes its Master Degree coursesAlso in association with POLIDesign since 2012 Florims Milan showroom has hosted several design events for architects and designers of every nationality
Aziende modenesi per la RSI
ldquoAziende Modenesi per la RSIrdquo an independent open inclusive association of companies in the Modena area which believe in the principles and values of Corporate Social Responsibility was established by public deed on 30 September 2014 with Florim as a founding member Florim hosts the associations member companies every year to discuss the various topics proposed
Premio Lucchese
The Premio Lucchese presented for the twenty-ninth time in 2016 was established in memory of Giovanni Lucchese and consists of scholarships awarded to students at the ldquoAlessandro Voltardquo Technical High School in Sassuolo who graduate with full marks The award ceremony held every year at the Florim Gallery in association with Societagrave Ceramica Italiana of Bologna includes a talk given by a leading personality on a topic of current interest to an audience of eager young listeners
Intrapresaelig Collezione Guggenheim
As befits a company that combines the values of its local community and historic and artistic heritage with a flair for research and innovation Florim recently launched a partnership with the Peggy Guggenheim Collection Since its foundation Florim has always had a unique ability to incorporate the true cultural significance of its industry in its business model and by this project once again confirms its commitment to promoting art by supporting a collection of extraordinary beauty
Fondazione Ing Giovanni Lucchese
More than thirty years after the untimely death of Giovanni Lucchese ndash founder of what was then Floor Gres currently Florim ndash in 2013 his family established a Foundation in his name which since then has funded organizations and associations that support families in need in the ceramics district The Foundation also supports a variety of projects such as the summer play scheme for employees children the Premio Lucchese and the Florim HealthampTraining Center described in more detail below
The main projects undertaken in 2016 include the funding of the purchase of 10 defibrillators for the Municipality of Fiorano and the contributions made to the purchase of paediatric ambulances for the local area and to support the Parish charitable organizations and social services in the district
Watch the Premio Lucchese video
The project run jointly by Florim and Sassuolo Hospital adopts a completely new model combining industrial culture and healthcare in an original way to benefit the local people and community thanks to the coming-together of a ceramic coverings manufacturer and the public-private joint venture Ospedale di Sassuolo Spa Florim HealthampTraining is the synthesis of this idea an experimental center which promotes local training for healthcare and other staff health education and information advanced medical simulation and research
The Center
On the main Florim site and opened on 16 April 2014 the Center is 550 square meters in area and contains a modular lecture theatre able to seat over 100 people and a number of classrooms for seminars and lessons At its heart is a state-of-the-art control room crammed with technology that operates dummies capable of reproducing human functions of all kinds Advanced simulation is a major aid to maintaining the skills of emergency healthcare workers with a particular focus on pediatric and neonatal resuscitation
Health meetings
Designed as a space for community use the Center also aims to become a place where all sections of the population - workers schoolchildren parents teachers volunteers and even just members of the public - can learn about preventive health care and acquire first aid skills After the distribution to Florim employees of a questionnaire surveying their training needs and preferences a Center Scientific Committee of Sassuolo Hospital medical personnel was appointed and drew up a plan of bi-monthly ldquoHealth meetingsrdquo All meetings are led by doctors with expertise in the various topics who answer the many questions from the audience at the end of their talks Between its opening and the end of December 2016 the Center hosted 13 meetings on a variety of topics attended by about 1000 people including employees their family members and the community at large
Healthcare discounts for Florim employees
The project also includes a major welfare program for all Florim employees and their family members entitling them to discounts and shorter waiting times for specialist examinations and outpatient diagnostic tests performed on a private basis
American Heart Association
The world-famous American Heart Association (AHA) is the oldest and most respected American voluntary organization dedicated to the fight against cardiovascular diseases and strokes In 2015 the AHA via the Simaid International Training Center named the Florim HealthampTraining Center as an Authorized Training Site for basic and advanced cardiopulmonary resuscitation
Florim HealthampTraining Center
2016 Sustainability Report
Watch the Health amp Training Center video
2016 Sustainability Report32
Product Responsibility
Here we summarize the concept of Made in Florim denoting a product that encapsulates the companys core values passion innovation a constant commitment to improvement and corporate social responsibility
Florim product certifications
CE Marking guarantees the user that the materials purchased meet the requirements of the relevant regulations and that the characteristics concerned are virtually unchanged for all production lots It is a declaration of conformity which protects the consumerrsquos safety The presence of the CE Marking on packaging guarantees that Florim products comply with the relevant regulatory requirements
Ecolabel (EC Regulation 662010) is a certification granted to products which comply with ecological and performance criteria set at a European level concerning raw material extraction supplier selection manufacturing processes packaging distribution use and disposal The certified Florim collections are Architech Ecotech Reverse Walks 10 by Floor Gres and Pietra del Nord under the Rex brand
Several ceramic tile collections bearing the Florim brands have earned certification from Bureau Veritas for their pre-consumer recycled material content These articles are therefore fully eco-compatible and can meet the environmental sustainability requirements imposed by many international certifications
Florim is a member of the US Green Building Council (USGBC) the most important association which promotes the reduction of buildings negative impact on the environment To allow the effective monitoring a projects level of sustainability the USGBC has developed a certification procedure for the development of sustainable buildings which assess and certifies the sustainability of a building in its entirety Florim materials are able to help to gain LEED points in a number of areas (data available on the Florim brand websites)
Florim has achieved the prestigious Greenguard certification for all its products Issued by the American body UL Environment this certification aims to reduce indoor pollution caused by interior design systems and materials UL Environment thus aims to protect health by improving air quality and reducing peoples exposure to chemicals and other pollutants Florim has also achieved Greenguard Gold Certification which imposes even stricter limits to confirm that a given product is suitable for use even in locations such as schools and health care facilities
The EPD or Environmental Product Declaration is a document which defines the environmental impacts arising from production In 2016 Florim participated in the study - certified by the German organization IBU - performed on the ceramics industry average data which aims to raise international awareness of the excellence of the environmental standards achieved
Beyond the standardsMade in Florim products are a guarantee of safety highly innovative content and eco-friendliness The people who produce them work in a safe place and in ethically sustainable conditions Due to their nature all Florim products are guaranteed free from pollutant emissions do not accumulate electrostatic charges are frostproof and completely inert and are undamaged by contact with flames The Groups Internet sites and collection catalogues contain the technical data sheets which detail the product information (slip-resistance breaking strain abrasion resistance etc) for every collection as well as its recycled material content with the relative certificates
During the period under consideration no banned products were placed on the market and the company was not found guilty of any breaches of the law with regard to data protection or its marketing and communication activities
EU Ecolabel nr IT2104
2016 Sustainability Report 33
Quality SystemThe current ISO 9001 standards define quality as the ability to satisfy explicit or implicit needs via a product or a service A Quality System implies constant improvement of company processes in order to realise products that always satisfy the customerrsquos needs Further to the 2016 audit Florim obtained the renewal of its UNI EN ISO 90012015 certification for the design manufacture and sale of all categories of ceramic tile
Objective Indicator 2012 2013 2014 2015 2016
Continual improvement of control of the production process
Percentage of First Grade Product ()
924 943 942 952 956
Quality rate () 883 905 903 905 909
Scrap rate () 44 41 42 42 49
Productivity (sq mhour) 186 188 186 190 200
Improvements in sales performance and customer satisfaction
Innovation rate () 330 296 367 455 364
Coverage () 795 714 814 813 816
Total portfolio shippable within one month ()
911 837 888 893 897
Optimization of range and stocks
Obsolete stock () 172 126 165 120 69
Stock turnover rate () 13 15 16 15 16
Gradual elimination of disputes complaints and claims concerning service
Square meters affected by complaints ()
17 12 08 12 09
Complaints by number of order items ()
10 11 11 10 10
Gradual improvement in staff skill levels
Employee turnover () 15 23 04 04 12
KeyPercentage of first grade product percentage ratio between the square meters of first grade products and the total square meters transferred to stockQuality rate percentage ratio between the square meters of first grade product transferred to stock and the square meters leaving the pressesScrap rate percentage difference between square meters of material leaving the presses and square meters of product actually transferred to stockProductivity ratio between the square meters transferred to stock and the total hours worked in the plantInnovation rate ratio between square meters sold belonging to series designed in the last three years and total square meters sold Florim uses this indicator to assess the effectiveness of its design process in terms of salesCoverage percentage ratio between square meters available for immediate shipment and the square meters on orderTotal portfolio of orders shippable within one month percentage ratio between the square meters which can be shipped in 30 days and the square meters on orderObsolete stock percentage ratio between the square meters of substandard discontinued produce and the total square meters in stock Stock turnover rate ratio between the square meters sold and the square meters in stockSquare meters affected by complaints percentage ratio between the square meters affected by complaints and the square meters soldComplaints by number of order items percentage ratio between the number of complaints and the number of items orderedEmployee turnover percentage ratio between the number of employees leaving the company and being replaced and the workforce at the start of the year
2016 Sustainability Report34
Casamood - Neutra 60 Collection
2016 Sustainability Report 35
OUR COMMITMENTS
The promises we keptIn our last Sustainability Report we committed to achieving a large number of objectives the following are the outcomes we attained
Relaunch of the ldquoCEDIT ndash Ceramiche drsquoItaliardquo brand OBJECTIVE ACHIEVED
Launch of the FLORIM stone brand OBJECTIVE ACHIEVED
Installation of a new latest-generation kiln at the Mordano plant OBJECTIVE ACHIEVED
Transfer of the Moscow showroom to new premises SCHEDULED FOR 2017
Creation of a new gatehouse at the Mordano plantOBJECTIVE POSTPONED TO GIVE PRIORITY TO THE CONSTRUCTION OF THE NEW FACTORY
Introduction of ERP system at Florim USA OBJECTIVE ACHIEVED
Installation of a new spray dryer and raw material handling system at Florim USA
OBJECTIVE ACHIEVED
Economic Responsibility
Renewal of certification of the Florim environmental and energy management system
OBJECTIVE ACHIEVED
Award of new certifications for collections manufactured with a high recycled material content
OBJECTIVE ACHIEVED
Continuation of work to reduce environmental impacts at Mordano especially with the reduction of energy costs
OBJECTIVE ACHIEVED
Continuation of the work to remove asbestos cement roofing materials at the Mordano plant
OBJECTIVE ACHIEVED
Expansion of the system which conveys rainwater to the treatment plant OBJECTIVE ACHIEVED
Reduction of the noise emissions of the air filtering systems OBJECTIVE ACHIEVED
Increase of recycling targets through constant awareness-raising amongst all staff and optimisation of recycling facilities
OBJECTIVE ACHIEVED
Continuation of replacement of the diesel forklift trucks for use on outdoor yards with electric vehicles
OBJECTIVE ACHIEVED
Environmental Responsibility
Running of fourth edition of Master Florim course with new procedures OBJECTIVE ACHIEVED
Creation of an internal refreshment area for the Fiorano office staff OBJECTIVE ACHIEVED
Improvement of corporate welfare through the activation of new free services and discounts tailored to employees needs
OBJECTIVE ACHIEVED
Continuation of the health meetings for the local community in association with Ospedale di Sassuolo Spa
OBJECTIVE ACHIEVED
Organization of new community events at Florim Gallery OBJECTIVE ACHIEVED
Organization of Florim Family Day 2016 A PARTY WAS ORGANISED FOR EMPLOYEES
Social Responsibility
2016 Sustainability Report36
The targets we set for ourselvesWe aim to achieve the following objectives in 2017
Economic Responsibility
Construction of a new factory at Mordano to produce large slabs
Launch of the project to unite the Florim spa sales organizations
Total restyling of the corporate and brand Internet sites
Launch of the HUB project - Intranet CRM Marketing Automation
New plants at Florim USA a press two sorting lines a polishing and rectifying line
New working spaces and cloakrooms for technical staff at the American plant
Environmental Responsibility
Purchase of a new cogenerator for the Mordano plant
Introduction of a new rainwater collection system at Fiorano
Land reclamation project involving covering of the Rio Spezzano stream at Fiorano
Implementation of new software for continual monitoring of energy impacts at Fiorano
Modernisation of the compressor room to improve energy impacts at Mordano
Increase of recycling targets through constant awareness-raising amongst all staff and optimisation of recycling facilities
Continuation of replacement of the diesel forklift trucks for use on outdoor yards with electric vehicles
Social Responsibility
Improvement of corporate welfare through the activation of new free services and discounts tailored to employees needs
Continuation of the health meetings for the local community in association with Ospedale di Sassuolo Spa
Organization of new community events at Florim Gallery
Organization of a new event for Florim spa employees
New offices for hospitality and events staff at Fiorano
2016 Sustainability Report 37
FLORIM USA
Profile and Economic ResponsibilityFlorim USA with registered office at Clarksville - Tennessee - and its subsidiary Florim Solution Inc have been part of the Florim Group since 2000 The Florim USA manufacturing plant one of the largest most technologically advanced in the United States produces porcelain stoneware tiles for the residential market and undertakes commercial projects in North America During the last few years Florim USA has implemented a growth and process optimization strategy which has generated significant technological progress with more innovations planned for the future The strategy adopted will put Florim USA at the worldwide state of the art in porcelain stoneware tile manufacture
In 2016 of the 18 million USD invested 147 was allocated for installation of a latest-generation raw material handling system and a large spray-dryer with an innovative sorting system Improvements were made to other parts of the process to increase their efficiency leading to a further reduction in emissions and scrap rates Additional investments are planned during 2017 to continue this dual trend of rising production with mitigation of environmental impact
The new Florim Flagship Store in New York (152 Madison Avenue 32nd Street)
2016 Sustainability Report38
Environmental ResponsibilityFlorim USA implements the same environmental policy as Florim and is committed to achieving the following objectives
bull reduction of the energy used in the production processbull improvement of the waste management process with a focus on recovery and reusebull introduction of new more eco-efficient technologiesbull adoption of integrated management systems
Florim USA has been pursuing a strategy of careful management of its operations and environmental impact for a number of years Here we summarise the main actions taken and the results achieved in 2016
bull installation of a latest-generation spray-dryer in 2016bull installation of an innovative raw material handling system in 2016bull 100 recycling of wastewater within the processbull optimisation of the management of water bottles with elimination of about 34200 of them per annumbull reuse of almost all production scrap (+99)bull 157000 kg of cardboard recycled in 2016bull award of two different types of product certificationbull 9300 kg of plastic recycledbull recycling of 17 complete trucks of pallets
Environmental Projects and Awards
Florim USA has received Clarksville Montgomery County Green Certification (CMCGC) CMCGC is a program designed to help companies learn and implement best practices in the area of environmental stewardship to sustain the local communityrsquos resources through a series of free workshops taught by local environmental specialists Since 2014 Florim has allocated some of its Environment Managers time for the running of these workshopsFlorim USA earned this green company certification thanks to a large number of projects first and foremost the one which eliminated the use of disposable water bottles replaced with individual reusable bottles provided by the company and a series of fill-up stations About 34200 bottles are removed from the waste cycle every year
During the latest phase of its plant optimization Florim USA has implemented a thorough construction material reuse policy In the various stages of demolition of the old plants including the old storage silos the concrete debris was recovered and reused in other construction worksThis project alone generated 11500 tons of recycled aggregate as well as several hundred tonnes of metal sold to a recycling firm
Environmental management system and eco-compatible products
Florim USArsquos products help builders and designers to meet the requirements for sustainable buildings as defined by the United States Green Building Council (USGBC) through the LEED Green Building Rating System This protocol evaluates and certifies the environmental sustainability of a building as a unit from its design to its day to day management To gain LEED credits many of the Florim USA product lines contain a significant percentage of recycled material (40 or more)This feature contributes to an increase in the LEED score in the projects where these products are installed In 2014 Florim USA together with a large number of other US tile manufacturers and the Tile Council of North America drew up a type III environmental product declaration (EPD) certified under the ISO 14025 standard This ceramic tile life-cycle analysis enables Florim USA products to gain LEED points under the new LEED v4 protocol
2016 Sustainability Report 39
Water use (gallonsper million square feetof finished tiles)
208137 216246 204962 195280 194268
Energy use
2012 2013 2014 2015 2016
Cubic feet of natural gas per million square feet of finished tiles 9343383 9149721 8331170 8390503 8380000
kWh per million square feet of finished tiles 510972 491171 450594 465976 490300
Emissions
Particulate material lt 21024 tonnes per annum
SO2 (sulphur dioxide) lt 1674 tonnes per annum
VOC (volatile organic compounds) lt 1245 tonnes per annum
NOx (oxides of nitrogen) lt 1501 tonnes per annum
Environmental performance indicators ndash summary
The following are the main environmental indicators related to the impact and performance of Florim USA during 2016
Pre-consumer recycled material
Its internal material recycling processes enable the company to minimise its environmental impact since most of the material which would otherwise be sent to landfills or other waste treatment centers is reusedbull Wastewater is entirely recycled within the production process without any discharge into the municipal drainsbull The material in the collection bags from the tile body and glaze preparation areas the press and glaze application is entirely recycled within the processbull All scrap fired tiles are entirely recycled within the processbull 157000 kg of cardboard was sold to an external recycled material dealerbull 17 trucks of unusable wooden pallets were sold to a pallet regeneration companybull About 9300 kg of waste shrink-wrap plastic film was recovered and recycled
Post-consumer recycled material
About 82000 kg of glass was removed from the flow of waste destined for the local landfill and recycled within the process Florim USA has signed an agreement with the local landfill for consignment of all the glass it handles which is collected and set aside for recycling
Water use disposal and reuse
The water used during the production process is recycled continually therefore no water is discharged into the municipal drains
The 2016 emissions figures are in line with those for previous years well below the standards laid down
Water use 2012 2013 2014 2015 2016
Water use (gallons per million square feet of finished tiles) 216246 204962 195280 194268 203928
2016 Sustainability Report40
Social Responsibility
Employees
The Florim USA workforce comprises 348 staff employed at the production site the Clarksville and Nashville outlet stores and the Florim Solution offices Of the 348 employees 273 are blue-collar workers and 75 office staff 5 employees are Italians on secondment to the United States Florim USA offers a number of benefits to full time employeesbull health and dental care insurancebull Vision insurancebull life insurance for employees and optionally for family membersbull temporary and permanent disability supportbull employee pension plan
2012 2013 2014 2015 2016
Workplace injuries 50 41 22 29 27
The Employee Assistance Program (EAP) also offers support to employees and their families in the event of psychological difficulty or other problems that can have a negative impact on their quality of life Florim USA supports all the costs of the program
Equal opportunities
Florim USA provides equal opportunities in all employment practices to all qualified employees and applicants regardless of race colour religion gender national origin age disability or membership of the armed forces or any other category protected by federal state or local laws
Health and safety
FLORIM USA is committed to ensuring a safe healthy workplace for all employees It therefore replaces old and obsolete equipment with new technologically more modern machinery and updates safety plans as new information gradually becomes availableAs well as an internal supervisor Florim USA has also appointed a health and safety committee which constantly monitors the plans effectiveness and makes any changes requiredThere are currently 20 plant employees who hold CPRfirst aid qualifications They occupy a variety of positions and work different shifts within the plant and have volunteered to attend training courses sponsored by the company for the award of these qualifications
Training
In 2016 every Florim USA employee attended an average of about 25 hours of training The training provided covered the operating procedures for the new equipment the main safety plans and the procedures for use of existing equipment for new employeesAll new staff undergo specific training for their department focusing on the safety-related aspects of the department concerned as well as more generalized safety training
Some of these themes includebull safe correct use of forklift trucksbull training on work in confined spacesbull shutdownwarning procedures and safe electrical practicesbull safe lifting procedures
2016 Sustainability Report 41
Florim USA ndash (Clarksville Tennessee)
For employees wishing to continue their education Florim USA offers assistance through the Educational Assistance Program It provides aid with the cost of education and textbooks and is available for any employee wishing to study for a technical qualification a diploma or a degreeThe plant staff training and education plan also includes various training schemes at Florim Italy where employees are instructed in the use of new equipment before it is installed at the American plantThroughout 2016 Florim USA will continue to provide a free e-learning course on its website for architects engineers and contractors (AEC) to improve their knowledge of sustainable porcelain stoneware tiles
Employee welfare activities
Florim USA employee picnic - In 2016 the company once again held its annual picnic for employees offering them a wide variety of foods games activities and live shows in an event which provided an unforgettable days enjoyment Within the event participants received prizes in the form of vouchers and gifts
Employee anniversary dinner - 2016 again saw the usual dinner to honour Florim USA employees with 5 10 15 20 or more years of service A special evening event was held in the presence of the Chairman and the other managers to celebrate the loyalty and hard work these employees have contributed during their careers with the firm
2016 Sustainability Report42
Local Community
During 2016 Florim USA continued to provide its support to a number of projects in its local areaSome of the main projects include
Scholarships - As part of its work to support the local community Florim has an established scheme which awards scholarships to deserving students at the Austin Peay State University in memory of Florim Group founder Giovanni Lucchese In December 2016 a delegation of Florim representatives attended a scholarship presentation lunch at the Austin Peay State University hosted by the President of the University
Montgomery County Green Certification Program - Florim USA staff actively participate in the Montgomery County Green Certification Program which aims to help companies learn and implement best practices with regard to safeguarding the environment and environmental resources
Donations - In 2016 the company again made a large number of donationsbull book collection for the Austin Peay State University Employees made a generous donation of used books in good condition for children and young people of the APSU in the hope of further promoting the education of future generationsbull to Community Cares the national organization that promotes the acceptance and social inclusion of individuals with Downs Syndromebull to the Aspire Clarksville Foundation a 501(c)(3) charitable foundation whose mission is to continuously improve the economy and the livability (quality of life) of the community by attracting significant capital investment and expansion by businesses and corporations thereby creating better opportunities and higher paying jobs for residentsbull to the Alzheimerrsquos Association a non-profit voluntary organization dedicated to the care and support of Alzheimers Disease sufferers and research into the condition Its aim is to eliminate the disease through the advancement of research to provide and enhance care and support for all affected and to reduce the risk of dementia through the promotion of brain health
Other activities - Every year Florim USA participates in the United Way Drive initiative to support local non-profit organizations which provide economic assistance and psychological support to persons in difficulty
Florim USA provides regular support to the Salvation Army by collecting canned foods for persons in needIn 2016 the company again organised a canned food collection for Manna Cafeacute in Clarksville TN Manna Cafeacute is a local non-profit organization based in Middle Tennessee with the primary mission of meeting peoples fundamental need for food before encouraging them to permanently change their lives for the better More than 15 of the population in Montgomery County are affected by food insecurity (about 28000 people) The percentage of children affected is about 215 a third of whom are excluded by income from federal programs such as free school mealsFinally donations were made tobull American Lung Association the leading organization working to save lives by improving lung health and preventing lung disease through research and educationbull Cheer for a Cure an organization that gives money directly to afflicting families who have a loved one suffering from cancer and need assistance to alleviate the added financial stressbull Habitat for Humanity Since 1992 Habitat for Humanity in Montgomery County Tennessee has worked with 93 low-income families with more than 210 children to revitalise various parts of Clarksville-Montgomery County by building new homes
2016 Sustainability Report 43
Quality SystemFlorim USA works under a Quality System certified to UNI EN ISO 9001 standards The following are some of the figures in brief
Objective Indicator 2012 2013 2014 2015 2016
Optimisation of control of the production process
Percentage of First Grade Product ()
932 917 940 949 9510
Quality rate () 883 857 893 906 909
Scrap rate () 56 65 48 45 45
KeyPercentage of first grade product ratio between square feet of first grade material and total square feet transferred to stockQuality rate ratio between square feet of first grade material transferred to stock and square feet pressedScrap rate ratio between square feet pressed and square feet of product actually transferred to stock
Other ActivitiesFlorim USA and trade shows
In 2016 Florim USA participated at a number of shows and events including Coverings the AIA Tennessee Convention Hardscape North America Total Solutions Plus Neocon International Pool - Spa and Patio Expo These events targeted at the various categories of industry professionals such as dealers and designers gave Florim USA the opportunity to present its new range of indoor and outdoor products
Design Center
In December 2015 Florim USA opened a design center showroom in Nashville (TN) in a strategic location close to the airport and the city center With a spacious area to host individual CEU presentations and workshops this design center has the potential to be a major resource for local architects In 2016 it was also awarded the ldquoOutstanding Boothrdquo booth prize at the 33rd edition of the Annual Home Decorating and Remodeling Show The location is the ideal place for sharing ideas finding inspiration and putting professionals and architects in touch with each other
Florim Nashville Design Center
2016 Sustainability Report44
GRI International Sustainability Indicators SDGsThe information below illustrates the correspondence between the Florim (Italian companies) 2016 Sustainability Report the GRI-G4 guidelines and the icons of the Sustainable Development Goals (SDGs) definitively adopted by the United NationsA description of the SDGs is available at wwwglobalcompactnetworkorg
GRI indicators
Description Page Reference to SDGs
1 Strategy and Analysis
G4-1 Statement from the most senior decision-maker of the organization 5
2 Organization profile
G4-3 Name of the organization 2
G4-4 Primary brands products andor services 9
G4-5 Location of the organizations headquarters 9
G4-6 Number and names of the countries where the organization operates 9
G4-7 Nature of ownership and legal form 14
G4-8 Markets served 9
G4-9 Scale of the organization 8 8
G4-10 Significant changes regarding size structure or ownership 8
G4-11 Employees covered by National Collective Bargaining Agreement 27
G4-12 Describe the supply chain 16
G4-13Significant changes regarding the organizationrsquos size structure ownership or its supply chain
Reporting process
launched
G4-14 Precautionary principle 22
G4-15 List of external commitments in which the company is involved 22 32 33
G4-16 Associations or interest groups in which the company is involvedwwwflorimit gt
about us gt partnerships
3 Identified material aspects and boundaries
G4-18 Process used to define the report content 6
G4-19 Material aspects 16
G4-20 Boundaries of each material aspect 6
G4-21 Boundaries of each material aspect outside the organizationPartial reporting
(pages 6 16)
G4-22 Explanation of the effect of any restatements of information provided in previous reports 6
G4-23Significant changes from previous reporting periods in the scope boundaries or measurement methods
6
3 Stakeholder engagement
G4-24 List of stakeholders 15
G4-25 Identification of stakeholders 15
G4-26 Stakeholder engagement 6 16
G4-27 Key topics and concerns that have been raised through stakeholder engagement 16
4 Boundary of the Report
G4-28 Reporting period 6
G4-29 Date of publication 2
G4-30 Reporting cycle 6
G4-31 Contacts and addresses for additional information 46
5 GRI Content Index
G4-32 Reporting option chosen 6 7
G4-33 External assurance of ReportThe Report is not
externally assured
2016 Sustainability Report 45
GRI indicators
Description Page Reference to SDGs
6 Governance
G4-34 Governance structure 14
7 Ethics and integrity
G4-56 Values principles standards and norms of behavior 13 16
Economic performance indicators
EC1 Direct economic value generated and distributed 19 25789
EC5 Wages 27 158
EC7 Development and impact of infrastructure investments and services supported 23 24 31 257911
Environmental performance indicators
G4-EN2 Percentage of materials used that are recycled input materials 17 22 23 812
G4-EN3 Energy consumption within the organization 24 781213
G4-EN6 Reduction of energy consumption 17 24 71213
G4-EN7 Reductions in energy requirements of products and servicesPartial reporting
(page 22)71213
G4-EN8 Total water withdrawal by source 17 23 6
G4-EN10 Percentage and total volume of water recycled and reused 17 21 23 612
G4-EN11 Biodiversity 23 615
G4-EN15 Total indirect greenhouse gas emissions by weight 25 3121315
G4-EN16 Total indirect greenhouse gas emissions by weight 25 3121315
G4-EN19 Reduction of greenhouse gas emissions 8 24 1315
G4-EN21 NOx SOx and other significant air emissions 25 31215
G4-EN22 Total water discharge by quality and destination 23 6
G4-EN23 Total weight of waste by type 17 22 3612
G4-EN27 Impact mitigation of environmental impacts of products and services 23 68121315
G4-EN29 Monetary value of significant fines 22 16
G4-EN30 Significant environmental impacts of transporting products and goodsmaterialsPartial reporting
(page 25)111213
Social performance indicators
G4-LA1 Total number and rates of new employee hires and employee turnoverPartial reporting
(pages 17 27)8
G4-LA6 Workplace injury ratesPartial reporting
(page 17)38
G4-LA9 Average hours of training per year per employee 28 48
G4-LA12Composition of governance bodies and breakdown of employees according to gender age group etc
27 58
G4-LA13 Ratio of basic salary and total remuneration of women to men 27 5810
Society
G4-SO1 Operations with local community engagement 12 31 16
G4-SO3 Operations assessed for risks related to corruptionPartial reporting
(page 13)
Product responsibility
G4-PR1 Assessment of health and safety impacts for improvement 23 32
G4-PR3 Type of information about products and services required by the procedures 32 12
G4-PR5 Proceedings relating to customer satisfaction including surveys conducted to measure it 33
G4-PR6 Sale of banned or disputed products 32
G4-PR8 Number of substantiated complaints regarding breaches of privacy 32 16
2016 Sustainability Report46
Your Assessment
You are kindly requested to take a few minutes of your time to give us your assessment and any suggestions to enable us to improve future editions of our Sustainability Report
Click here to send us your feedback
To keep up to date with our business
Spazio CEDIT - interior (Milan)
wwwflorimiten
Florim Ceramiche
Florim4Architects
Florim_ceramiche
Florim Ceramiche spa
Florim Ceramiche
Florim Ceramiche
For any further information please feel free to contact our communications department comunicazioneflorimit
2016 Sustainability Report 47
Premio Lucchese - Florim Gallery (Fiorano Modenese - Modena Italy)
Intrapresaelig Guggenheim Collection - Massimo Bottura in Florim Gallery (Fiorano Modenese - Modena Italy)
Panathlon Christmas Gala - Florim Gallery (Fiorano Modenese - Modena Italy)
2016 Sustainability Report48
White Christmas Party - Florim Gallery (Fiorano Modenese - Modena Italy)
Cersaie - Mario Biondi in Florim Gallery (Fiorano Modenese - Modena Italy)
Dal buio alla luce - Social event at Florim Gallery (Fiorano Modenese - Modena Italy)
2016 Sustainability Report 49
Florim Gallery entrance (Fiorano Modenese - MO)
2016 Sustainability Report52
Florim Ceramiche spaVia Canaletto 24 - 41042 Fiorano Modenese (Modena Italy) - Tel +39 0536 840111 - wwwflorimit
Contents
5
6
8
9
9
10
11
13
13
14
14
15
16
17
18
18
19
Letter to Stakeholders
Our Sustainability Report
MADE IN FLORIM
Our History
Our Locations
Our Brands
Our Design Service
Our 2016
GOVERNANCE
Code of Ethics
Management System Policy
Corporate Bodies
Corporate Structure
Stakeholders
Materiality approach
REPORTING
In brief
Economic Responsibility
Comments on the Economic Data
Value Generated
21
22
22
24
27
27
30
32
33
35
36
37
38
40
43
43
44
Environmental Responsibility
Certifications
Environmental Management
Energy Management
Social Responsibility
Employees amp Corporate Welfare
Local Community amp Culture
Product Responsibility
Quality System
OUR COMMITMENTS
The promises we kept
The targets we set for ourselves
FLORIM USA
Profile and Economic Responsibility
Environmental Responsibility
Social Responsibility
Quality System
Other Activities
GRI International Sustainability Indicators SDGs
2016 Sustainability Report4
FLORIM stone Marble Statuario and Stone Black
2016 Sustainability Report 5
Welcome to the ninth edition of our Sustainability Report a document which is gaining wider and wider appreciation amongst those who follow the Florim Grouprsquos performance for its synthesis of the companyrsquos many activities in Corporate Social Responsibilities
During the last year we have once again shown a strong commitment to a business approach which goes beyond the achievement of economic results alone and involves social projectsintended to last over time with the secondary benefit of enhancing the image of the Florim name
I believe this document is a true confirmation that despite uncontrollable global environmental uncertainties there are multiple opportunities to keep the high-quality levels that Florim has always achieved
We have made further large investments in our factories in Italy and in the USA and we will continue to invest in the years to come We have given the same level of importance to investments in ourimage adding new showrooms to those already established in Milan to give visibility to CEDIT the brand which has been rediscovered and relaunched this year with a specific exclusive product range
The ldquoGalleryrdquo and the ldquoHealthampTrainingrdquo Center continue to be hives of activity the company continues to hold its doors wide open to young people with the ldquoMaster in Florimrdquo program and the ldquoFondazione Ing Giovanni Luccheserdquo continues to engage in important charitable work
I am very proud to state that all Florimrsquos employees in Italy and abroad are the companyrsquos greatest resource So I would like to say a well-deserved ldquothank yourdquo to all those whose constant hard work sense of belonging and mutual cooperation represent a priceless assets that consolidate over time
Enjoy the report and thank youClaudio Lucchese
Letter to stakeholders
2016 Sustainability Report6
Our Sustainability Report
Methodological Framework and Reporting Perimeter
Writing and distributing its Sustainability Report enables Florim to communicate with its stakeholders with transparency describe the results achieved and set our future goals in an approach based on engagement and continual improvement
Drawn up annually in accordance with the GRI-G4 Guidelines for Sustainability Reports (the G4 edition of the Global Reporting Initiative guidelines) the report issued for the ninth time this year aims to report on the economic environmental and social aspects of the companys operations from a point of view more oriented towards the shared value produced for its stakeholders
The reporting process with in accordance-core compliance level is co-ordinated by Florimrsquos communications department and supervised by the Finance Department with the invaluable assistance of many colleagues especially the staff of the management accounting technical human resources and administration departments The data and information it contains are obtained from the companys IT systems and databases
The Report refers to all the companies in the Florim group on the same principle as the Groups consolidated financial statements The figures provided in the reporting section refer to our Italian location while the fourth section contains a brief Sustainability Report for Florim USA As already stated this Report is intended as an aid to dialogue and therefore the language used is plain and to the point
The 2016 Sustainability Report also published in English will be distributed as follows - provision of a copy to all employees at the Italian and American sites enclosed with their pay stubs- publication of the PDF file on the corporate Intranet and the florimit website- distribution to member companies of the new ldquoAziende Modenesi per la RSIrdquo (Modena companies for social
responsibility) association- mailing to local institutions and the relevant trade union representatives- distribution to the local press and to the specialist press during exhibitions and site visits- distribution to key clients and architects- mailing to the main domestic agenciesauthoritiesassociations involved in issues related to sustainability and the
environment
Florim produciont plant (Fiorano Modenese - MO)
2016 Sustainability Report 7
CEDIT - Storie Collection | Giorgia Zanellato amp Daniele BortottoNamed as Best of the Best at the 2017 Red Dot Design Award
2016 Sustainability Report8
Giovanni Lucchese pioneers the production of extruded clinker tiles and Floor Gres is founded in the heart of the Sassuolo production district
Floor Gres is the first Italian manufacturer to produce single-fired white body tiles
The Swimming Pool Division is established within Floor Gres
Floor Gres is one of the first companies in the world to start the manufacture of porcelain stoneware tiles
Claudio Lucchese son of the founder takes over the reins at Floor Gres after his fathers untimely death
Floor Gres acquires Cerim Ceramiche
Floor Gres and Cerim merge to create Florim
Florim acquires Rex Ceramiche Artistiche
The Project Division forerunner of todays Florim Solutions is created
Incorporation of Florim USA a production and distribution company destined to become a leader on the American market
Florim acquires Casa dolce casa
The Casamood brand is born
A logistics hub is opened in Brazil
The new multifunctional Florim Gallery is opened and the Florim Logistics area is completed at the Florim headquarters The Fondazione Ing Giovanni Lucchese foundation is established
The first Flagship Store is opened in Moscow
The Milan Flagship Store moves to a location in the very heart of the city A new Flagship Store opens in the center of New York
Florim relaunches the historic CEDIT - Ceramiche drsquoItalia brand (which opens its first flagship space in Milan) and FLORIM stone the Groups first brand focusing on the interior design sector
MADE IN FLORIM
Over 50 years of history
Over 1300 employees worldwide
27 million square meters produced every year
406 million Euro turnover
1424 tons of CO2 not emitted in 2015 thanks to the photovoltaic system
It takes more than figures to define a company Today passion innovation a constant commitment to improvement and corporate social responsibility are the core values of a new way of doing businessthe MADE IN FLORIM way
Our History 1962
1967
1976
1981
1984
1990
1992
1994
1995
2000
2005
2006
2011
2013
2014
2015
2016
Watch the Floriminstitutional video
2016 Sustainability Report 9
Our Locations The map shows the grouprsquos headquarters showrooms production plants and logistic hubsFlorim brand products are available from top international customers and importers
Our Brands
Floor Gres is the brand specifically for innovative architectural projects The Floor Gres product range meets all the many and varied needs of contemporary architecture in terms of design and technical capabilities and environmental standards
Rex is the brand which denotes stylistic excellence with products inspired by precious natural materials (wood marble and stone) coordinated floor and wall coverings in which the surfaces interact to generate a new language in home design
Cerim is the brand that focuses primarily on color and on decoration Coverings designed on an integral basis to make the most of all parts of the home and offer solutions that adapt to the most diverse interior design contexts
Casa dolce casa and Casamood is the brand intended for high-end architecture and interior design and offers attractively blended colours and surfaces drawn from nature for the creation of warm interiors A range of matching colours and surfaces that combines porcelain stoneware with other types of materials Architectural design effects are blended with the language of interior decoration to create new types of relationships
CEDIT - Ceramiche drsquoItalia embodies the dialogue between art craftsmanship and technology The brand that shapes ceramic matter in the service of creativity allowing leading names of our time to express themselves to their full potential Large designer slabs that renew the concept of architectural space
FLORIM stone is the brand that combines performance and practicality with the utmost personalization of spaces Large porcelain stoneware slabs at the service of interior design professionals delivering creative flexibility with outstanding technical performances and appearance values
Florim USA is the brand of the American subsidiary its porcelain stoneware tiles for residential and commercial use manufactured in the plant at Clarksville (Tennessee) are tailored to suit the tastes of the largest possible segment of the North American market
FLORIM USASite production plant and logistics hubClarksville TN (USA)
Flagship StoreNew York NY (USA)
Logistics hubParanagrave (BRAZIL)
OceSingapore (SINGAPORE)
Flagship StoreMoscow (RUSSIA)
Site production plant and logistics hubFiorano Modenese (Modena ITALY)Production plantMordano (Bologna ITALY)
- Flagship Store- Spazio CEDITMilan (ITALY)
2016 Sustainability Report10
Our Design ServiceAs well as the product itself Florim offers a unique level of technical support throughout the various design phases From the feasibility study to the final installation Florim Solutions works side by side with the architect providing skills and experience whenever the style and performance of porcelain tiles become fundamental to the project In the age of speed and the digital revolution the company has also created an integrated web platform to give its professional partners unbeatable service Exclusive events visibility for projects free training meetings and specific competitions are just some of the services offered by Florim4Architectscom
Expo Azerbajan Pavilion winner of the Florim4Architects ldquoProject of the Yearrdquo competition
2016 Sustainability Report 11
Our 2016In this section we focus on the latest news from the Group covering a wide variety of aspects but all confirming the importance of Florims large slabs and once again underlining the centrality of innovation for the companys business
New brands
In April Florim chose the Salone Internazionale del Mobile a major event for the global design community for the relaunch of the CEDIT - Ceramiche drsquoItalia brand The brand which has always had links with leading artists designers and architects has achieved a superlative creative standard over more than fifty years of experimentation with materials and stylistic research in ceramic design CEDIT is returning to the forefront of Italian manufacturing in partnership with some of contemporary Italys top creative names Its new identity is a fine blend of Craftsmanship and Innovation expressed on the large slabs produced by Florim technology December saw the official opening - in the heart of Milan - of the first Spazio CEDIT the tangible expression of an innovative display concept created to convey the brands philosophy to the world
The brand created to explore new application solutions reaching beyond the conventional construction concept is called FLORIM stone Launched at Cersaie - the biggest ceramics industry show - this brand combines the outstanding performances of porcelain stoneware with the utmost personalisation of spaces The dimensional and functional plus factors of latest-generation large slabs allow stoneware to be used in a versatile customized way not just as a wall and floor covering but also for tops and furnishings (tables kitchen worktops and bathroom counters doors and fireplaces are just some of the possible applications)
New look
A busy year partly due to the refurbishment of the Fiorano Modenese headquarters As well as the new gatehouse the faccedilade of the office building was also restyled bringing it up to date with an all-white lookAn innovative modification at the technological state of the art was made to the raw material shed with a ventilated faccedilade of almost 1900 msup2 of Magnum Oversize large slabs The installation reproduces the ldquoArcheologierdquo collection (designed by artist Franco Guerzoni for CEDIT) and the lake of Vernago in Italys Alto Adige region (photo by Vanni Borghi) A latest-generation project leading the way in technology safety and maintenanceLast but not least a new barrier was also designed and constructed to separate the Florim property from the SFrancesco road It took 3 months to erect a boundary fence of about 340 meters of double-sided porcelain stoneware slabs 180 cm high and 265 cm wide supported by a steel frame With a total of 1122 slabs the fence was designed to withstand weather earthquakes and the forces generated by traffic passing at high speeds Installed at different angles the slabs create attractive effects with light and shade demonstrating the importance of sophisticated aesthetics to the companys identity
New Awards
Florims large slabs are the featured products in the various awards received and have been assigned one of the most important accolades in the design world with an Honourable Mention at the XXIV edition of the ADI Compasso drsquoOro awards
Just a few months after its launch the CEDIT brand also received major awards at the global level the NYCxDESIGN Award in New York the Hospitality Design Awards in New York ldquo100 Best of 2016rdquo at the Archiproducts Design Awards 2016 and the Best of the Best (April 2017) in the Design Product category at the coveted German Red Dot Design Award
More recognition came from the Emilia-Romagna Regions 2016 awards for Corporate Social Responsibility projects run in the local community A prize in the ldquoBusiness and Educationrdquo category was assigned to the Master in Florim project which aims to give young people the skills required for sustainable development
Learn moreabout CEDIT
Learn moreabout FLORIM stone
2016 Sustainability Report12
In the age of digital transformation Florim still believes in the importance of creating opportunities for meeting and exchanging ideas and in 2016 more than 12000 people came to the Florim Gallery (a multi-purpose space of 9000 msup2 at the Fiorano headquarters) Events of social usefulness workshops community projects and business occasions our training events and hospitality staff were busy on many different fronts It was also a major year for off-site events The Florim Flagship Store in Milan and the just-opened New York Flagship Store hosted more than 3200 people at events for architects and designers supported with important partnerships with POLIdesign and leading publishersFlorim also chose the world-famous Peggy Guggenheim Collection in Venice as the location for two exclusive events to highlight the partnership agreement signed with Guggenheim Intrapresaelig A dinner in the wonderful setting of the museums panoramic terrace followed speeches by distinguished guests Ettore Mocchetti Martino Gamper Domitilla Dardi Giorgia Zanellato Daniele Bortotto Franco Guerzoni and Benedetto Fasciana The final event of the year was held for the employees with a ldquoWhite Christmas Partyrdquo evening at a Florim Gallery decorated for the festive season
A year of Florim events
LrsquoArte del Design - Florim event at the Peggy Guggenheim Collection (Venice)
2016 Sustainability Report
View the Florim eventat the Guggenheim
2016 Sustainability Report 13
GOVERNANCE
Code of EthicsThe groups governance plays a central role in the responsible development of its business ensuring ethical transparent management of its operations with its stakeholders interests always in mind
After approving the Governance Model compliant with the provisions of Italian Legislative Decree 2312001 the Florim Board of Directors signed and promoted the corporate Code of Ethics (revised in June 2016) which has become an integral part of Florims business and is accepted by every new employee supplier and agentTo guarantee the application of and compliance with its contents a Supervisory Board was established to detect any breaches of its provisions All stakeholders can also contact the Supervisory Board (organismodivigilanzaflorimit) for further explanations regarding the interpretation and application of the corporate Code of Ethics as described on the corporate websiteThe following is an extract from the rules of conduct which govern the way we do business
Our mission
To manufacture ceramic tiles and materials for multiple uses and offer the most appropriate solutions for both interior design and architecture To constantly prioritise environmental sustainability attempting to satisfy the needs of customers and to create value for shareholders employees and the local community in compliance with the ethical principles and rules of conduct set out in the Code of Ethics
Our vision
To be at the cutting edge of technical and design innovation in ceramics by developing materials and production methods that position us as a constant benchmark for customers architects and competitors
Our values
Honesty and Respect all internal and external relationships must be based on honesty and respect for rules and dignity of the individual
Corporate Social Responsibility corporate social responsibility must be promoted through measures and practices adopted to support the local environment and community
Individual Responsibility everyone must be aware of the worth and consequences of their own actions
Quality and Innovation excellence must be pursued by improving products processes and skills to promote corporate success
Transparency intentions and positions must be expressed openly and clearly without misunderstandings or misrepresentation to build lasting relationships based on trust both inside and outside the company
Courage a moral strength which enables us to undertake and deal with changes difficulties and challenges to benefit from all the opportunities they offer
Feeling of Belonging feeling proud to be a part of one big team made up of the company associates customers and suppliers
Management System Policy
To achieve greater and greater transparency in its reporting the company has drawn up guidelines for its quality environment safety and energy management system Read more
2016 Sustainability Report14
Corporate BodiesFlorim Ceramiche spa is a family-run business with fully subscribed paid-up share capital consisting of 50000000 ordinary shares with a face value of 1 Euro each The capital is 100 owned by the holding company FinFloor spa with registered office in Fiorano Modenese which is in turn indirectly owned by the Lucchese family through Fin-Twin spa
The Board of Directors has 11 members
CLAUDIO LUCCHESE Chairman
DONATO BRUNI Deputy Chairman
MARIADELE LUCCHESE Director
ANNA LUCCHESE Director
FRANCESCA LUCCHESE Director
GIOVANNI LUCCHESE Director
The Board of Directors has a mandate of one year and new elections will coincide with the approval of the financial statements The Board of Statutory Auditors is composed of three members whose term of office is three years from their appointment on 1252016 until approval of the 2018 financial statements The financial statements of Florim spa and the consolidated financial statements of FinFloor spa and Fin-Twin spa are audited and certified by Deloitte spa
Corporate StructureThe changes to be noted since the previous financial statements include the incorporation of ldquoMordano 4 srlrdquo and amalgamation by acquisition of Maker srl in Florim Ceramiche spa
KRONOS 2 CERAMICHE spaShare capital euro 1646799
Fondazione Ing G LuccheseEndowment euro 60000
FABBRICA delle MATERIE srlShare capital euro 10000
EDIL FLOOR surlShare capital euro 9812681
ISABELLA srlShare capital euro 100000
FI HOLDING IncShare capital USD 50000
100
10
100
30
9667
100
1
1
99
99
100
FIN TWIN spaShare capital euro 540800
FINFLOOR spaShare capital euro 10500000
542810
FLORIM CERAMICHE spasingle shareholder companyShare capital euro 50000000
100
FLORIM BRASIL LtdaDISTRIBUICcedilAtildeO DE CERAcircMICAS Ltda
Share capital R$ 46100000
FLORIM RUSShare Capital 100000 Roubles
FLORIM USA incShare capital USD 51865541
FLORIM SOLUTION IncShare capital USD 845943
100
MORDANO 4 srlShare capital euro 100000
85
FLORIM FAR EAST PTE LtdShare capital S$ 10000
100
ERMES GIUSEPPE FERRARI Managing Director
GIOVANNI GROSSI Managing Director
OSCAR ISEPPI Managing Director
DORVAN SAZZI Managing Director
STEFANO TORRENTI Managing Director
2016 Sustainability Report 15
StakeholdersStakeholders are all individuals and groups who may influence or be influenced by a companys operations in terms of policies products and working processes shareholders employees customers and consumers suppliers local government the local community banks and trade unions
Employees and Trade Unions
Florim makes the following commitments to its employees
bull to guarantee equal opportunities fair pay and professional growth
bull to reward its human resources on the basis of transparent meritocratic criteria
bull to create safe working environments and processes
bull to guarantee transparency and clarity in contract conditions
bull to encourage dialogue and internal communications
Customers and Consumers
In dealing with its (retail) customers Florim is committed to
bull creating a relationship of trust as a stable basis for business
bull guaranteeing clarity in contracts and prices
bull guaranteeing the reliability of its products and developing customer service
bull offering innovative safe environmentally sustainable products
bull providing a diversified offering with services with high value added
The overall aim is also to satisfy the expectations and demands of the final consumer
Developers Architects and Interior Designers
To meet the needs of developers Florim is committed to
bull offering state-of-the-art solutions in terms of environmentally sustainability technology and design
bull establishing and fostering relationships with partner professionals
bull providing consulting and technical experience from the project concept through to installation
bull supplying turnkey solutions
Local Communities and Local Government
In its relationships with local communities and local institutions Florim is committed to
bull guaranteeing dialogue cooperation and transparency
bull giving value back to the local communities in the areas where it operates
bull continually improving the environmental performances of processes
bull researching developing and using the most sustainable technologies
bull making an economic contribution to local sporting and social projects for children and young people
Suppliers
When selecting its suppliers Florim pays close attention to companiesrsquo CSR practices Florims relationships with its suppliers are based on compliance with the values of its code of ethics otherwise contracts are automatically terminated Florim also guarantees certainty in payment times and compliance with contract terms provided the goods and services contracted are delivered as agreed
ERMES GIUSEPPE FERRARI Managing Director
GIOVANNI GROSSI Managing Director
OSCAR ISEPPI Managing Director
DORVAN SAZZI Managing Director
STEFANO TORRENTI Managing Director
2016 Sustainability Report16
Materiality ApproachIn 2015 the company began an internal analysis process based on the materiality principle in order to identify the sustainability issues of relevance both for the Group (including Florim USA) and for all stakeholders Materiality is the threshold above which a topic becomes sufficiently important to be included in the report In fact organizations are faced with a large number of topics on which they could report Relevant topics and indicators are those considered important for reflecting the organizations economic environmental and social impacts or which influence the decisions of its stakeholder and which therefore potentially merit inclusion in the report In accordance with the GRI ndash G4 Guidelines Florim has analyzed and identified relevant topics which were assessed by the working team which drafted the Sustainability Report on the basis of discussion with the main stakeholders The findings which emerged were supported by a qualitative survey external to the companys context examining an analysis of the press gallery (more than 650 articles) competitors Sustainability Reports the Emas Study of the Fiorano and Sassuolo Ceramics District and the GRI document ndash ldquoSustainability Topics for Sector What do Stakeholders want to knowrdquo
In the chart below the aspects found to be most important appear in the top right-hand corner and constitute a strategic priority for the Group The topics in the bottom left-hand corner such as biodiversity prevention of corruption and absence of discrimination are less relevant because they are easy for both the organization and stakeholders to manage and no problems have ever been reported over the years Similarly the protection of human rights is now taken for granted since Florim complies strictly with all the provisions of the National Employment Contract
Importance for stakeholders
Importance for Florim spa
low
m
ediu
m
high
low medium high
Biodiversity
Indirect economic impacts
Prevention of corruption
Market share
Absence of discrimination
Sustainable transport
management
Protection of Human Rights
Environment and safety
Water saving
Energy efficiencyRaw materials
Diversity and equal opportunities
Transparency of financial and other
information
Ethical supplier
management
Investments in the local community and social welfare
Direct and indirect environmental
impacts
Green products and
services
Economic performance
Quality of products offered to customers
Regulatory compliance
Development of human resources
and training
ENVIRONMENT
COMMUNITY
EMPLOYEESASSOCIATES
ECONOMIC PERFORMANCE
PRODUCT RESPONSIBILITY
HUMAN RIGHTS
2016 Sustainability Report 17
FinFloor consolidated (in thousands of Euro) 2012 2013 2014 2015 2016
Net earnings 315344 325853 329533 374094 406759
EBIDTA 59608 72986 84395 98115 107186
Operating result 35717 50996 58508 66255 71028
Gross cash flow 52710 68312 83274 97268 109148
Net profit 26103 35732 36433 43324 49347
Net financial indebtedness (127730) (96500) (54524) (27326) (12508)
Final inventory 95514 84432 90283 92795 96721
Net shareholders equity 186905 218847 276916 332721 369937
Total investments 32572 48780 41584 34215 53531
2012 2013 2014 2015 2016
Waste produced (t) 30228 21170 22300 30862 34423
Recycled third-party waste (t) 4028 4190 1721 2570 5627
Total water consumption (msup3) finished product (t) 075 075 078 069 071
Recycled water percentage 100 100 100 100 100
Self-generated energy in relation to consumption 67 68 62 65 75
Investments in environmental management (euro000) 13617 2493 1995 465 6400
2012 2013 2014 2015 2016
Number of employees at 3112 1037 992 984 982 987
Total number of training hours 14690 9124 9056 7176 10606
Number of training hours on environment and safety 7572 4514 4200 3008 2489
Number of workplace injuries 63 62 74 56 43
Environmental and social profile figures refer to Florim Italy for Florim USA please see the relevant section (from page 37)
REPORTING
In brief
Economic Profile
Environmental Profile
Social Profile
2016 Sustainability Report18
Economic Responsibility
Comments on 2016 Economic Data
The Groups 2016 results were again good from every point of view
Compared to the previous year turnover increased by 87 leading thanks to careful management of production costs to an EBITDA of Euro 1071 million equivalent to 263 of turnover and a profit after tax of Euro 493 million
The companys financial data also significantly improved with a net financial position of Euro 125 million compared to Euro 273 million at the end of 2015 in spite of record technical investments of Euro 535 million and financial investments of Euro 11 million
Once again underlying the results achieved were large investments in latest-generation machinery and technologies painstaking research to develop materials with exceptionally high technical and design content human resources and projects for the increasingly direct promotion of Florims image and quality standard
Investments
The technical investments made in 2016 amount to Euro 535 million while Euro 11 million was spent on reacquiring 100 ownership of Maker srl followed by its amalgamation with Florim spa on 31 December The most important industrial projects included the continuation of the work on the Mordano plant which involved investments of Euro 26 million for the restructuring of the raw material preparation area and the doubling of production capacity for traditional porcelain stonewareThe investments of US$ 18 million at Florim USA were utilised to complete the renewal of the raw material preparation area and construct a new building for the technical organizationFinally about 9 million Euro was invested at Fiorano on various production line modernization projects
A creative hub for design style and new trends Milan once again confirms that it is the ideal setting for Florims investments and the opening of the all-new ldquoSpazio CEDITrdquo confirms the companys determination to strengthen its bonds with design professionals working in high-end interior design The culture of beauty art architecture and design are all integral to the genetic make-up of CEDIT ndash the historic Italian brand relaunched by Florim in 2016 ndash and dominate the display areas and the first six ceramic covering collections styled by famous names on the contemporary creative sceneOn two levels with a total floor area of more than 200 msup2 the space maintains the same stylistic identity as the one at Fiorano Modenese since they are both constructed to an architectural design intended to be replicated in CEDIT customers showrooms worldwide
Spazio CEDIT Watch theinauguration video
2016 Sustainability Report 19
Economic Value Generated and Distributed
The figures for the economic value generated and distributed provide a simple clear explanation of how Florim has created wealth and redistributed it to its stakeholders The table below contains the data from Florims 2016 financial statements approved by the Board of Directors on 30 March and certified by external auditorsThe economic value directly generated is represented by the total earnings for 2016 while the economic value distributed includes the costs incurred for suppliers and employees payments to the state (taxes) and the donations which had positive repercussions for the community to which Florim spa belongs
Heading 2014 2015 2016
Revenues 253125 269855 302521
Direct economic value generated 253125 269855 302521
Operating costs 135735 150951 168809
Employee wages and benefits 56985 58149 62418
Payments to providers of capital 7413 6399 11903
Payments to government 15738 13162 15382
Community investments 221 212 240
Economic value distributed 216092 228873 258752
Economic value retained 37033 40982 43769
KeyRevenues net sales plus revenues from financial investments and sale of assetsOperating Costs payments to suppliers non-strategic investments royalties payment facilitationsEmployee wages and benefits employee wages and benefits per employees (current payments)Payments to providers of capital all payments to the organizations providers of capitalPayments to government gross taxes and dutiesCommunity investments voluntary donations and investments in the communityEconomic value retained calculated as economic value generated less economic value distributed
The data in the table are in thousands of Euro and refer to the consolidated financial statements of the Italian companies only
KBIS (USA) - detail of the stand created with ldquoI Classici di Rexrdquo
2016 Sustainability Report20
Casa dolce casa ndash Argille 20 Collection
2016 Sustainability Report 21
Environmental ResponsibilityEffective environmental policy management energy saving and emissions reduction are amongst Florims strategic sustainability objectives
Our green projects in figures
2 highly-regarded process certifications
ISO 14001 (ENVIRONMENT)and ISO 50001 (ENERGY)
849873 MWh is the amount of electricity the
company succeeded in producing in-house during 2016
2 departments (marketing and communications)
engaged on digitizing advertising tools
8462 tons of CO2 NOT emitted
CO2
100 is the percentage of wastewater recycled
16000 msup2of photovoltaic panels covering
an area of 30000 msup2
75 is the percentage of the electricity consumed which is
produced in-house
4 latest-generation industrial kilns installed in
the last 3 years
4 different types of environmental product
certification
2 cogeneration plants to increase energy saving
and efficiency
1 laboratory for the development of contemporary design projects with a specific focus on the materials green
content
100is the percentage recycling of
industrial greenware waste in the production process
2016 Sustainability Report22
Certifications
System and process certifications
UNI EN ISO 14001TUumlV has awarded Florim the highly-regarded UNI EN ISO 14001 voluntary certification which confirms its compliance with a series of internally certified procedures intended to improve the internal environmental management system The decision to seek this certification springs from the desire to reconcile quality with efficiency and productivity while protecting the environment and community in which the company operates
UNI EN ISO 50001Thanks to a careful energy management policy and aided by the latest investments in the production area also intended to improve energy efficiency Florim was the worlds first ceramics manufacturer to obtain ISO 50001 certification of its Energy Management System
In addition to its environmental certifications Florim has also been awarded prestigious AEO (Authorized Economic Operator) status
Further to a lengthy and demanding audit process by the Customs Authorities in 2016 Florim was awarded AEO certification the first company in the Province of Modena to receive this major form of approval Authorised Economic Operator status guarantees the companys absolute compliance with customs and security requirements in its foreign trade
Environmental Management
Waste 2012 2013 2014 2015 2016
Total waste produced (t) 30228 21170 22300 30862 34423
Non-dangerous recyclable waste (such as paper and cardboard fired scraps plastic glass and wood) ()
989 982 985 991 989
Non-dangerous disposed-of waste (such as the waste picked up by the motor sweepers) ()
02 04 02 02 02
Dangerous recyclable waste (such as spent oil batteries and monitors) ()
00 01 01 01 00
Dangerous disposed-of waste (such as spent lime) () 01 13 12 07 09
Third-party waste recycled within the production process (t) () 4028 4190 1721 2570 5627
Besides recycling greenware waste from its own production cycle (not included in the table because the amount cannot be calculated) Florim also recycles third party waste
Florims operations have always been oriented towards optimization of impact on the local community and environment Thanks to the work of its research laboratories the support of all staff and the recent investment plans tangible results have been achieved The data provided below reveal that in spite of an increase in production of 8 compared to the previous year consumption remains low The companys commitment to environmental protection is all-inclusive and also comprises a focus on the district within which it operates One example is the total removal of all asbestos cement from the Fiorano Modenese plant and the creation of the new recycling station opened in 2015 and donated to the Local Authority as a public serviceAs in previous years during 2016 Florim was not fined for any breaches of environmental regulations or laws
Florim recycles and optimises within the production process all greenware scraps dust residues from filters and sludge from the process and rectification wastewater treatment system The waste produced is detailed in the table the significant differences between years are due mainly to the major demolition and subsequent reconstruction works undertaken at the Italian plants
Waste Management
2016 Sustainability Report 23
Water Resources
No environmental impact of wastewater discharges is specified since all the water from the production cycle is completely reused (100) All other effluents comply with legal requirements
The figure states the total cubic meters of water used per ton of finished product The water used in the Fiorano production process is drawn from private company-owned wells with water from the public main only used for non-industrial purposes The Mordano plant is supplied by an industrial water main Water use is measured by means of meter readings Four highly innovative dry rectifying plants have gone into production at Mordano since 2015 enabling the company to eliminate the physicalchemical treatment of the water used in the rectification process
WATER USE
2012
08
2013
08
2014
08
2015
07Total water consumption (msup3) finished product (t)
07
2016
All packaging used for Florim materials is made from recycled paper and parts of the coverings used to protect pallets of finished products consist of recycled plastic Whats more all the packaging used (boxes cardboard shrink wraps pallets etc) can be completely recycled by the end user The latest investments made include new eco-friendly packaging machines increasing the number of these machines installed to 15 These plants completely eliminate waste due to leftover inventory saving significant amounts of cardboard
Packaging and Coverings
As the materiality assessment states Florim has no significant impacts on the biodiversity of its local area since the company is located inside the Fiorano Modenese ceramics manufacturing district at least 5 Km from the nearest nature reserve at Salse di Nirano Florim takes special care over the choice of the raw materials used for its tile body mixes of which it is required to provide documentation guaranteeing compliance with the European Directives protecting wild birds (EU Dir 79409EEC) and habitats (EU Dir 9243EEC) and the United Nations Convention on the protection of biodiversity It has also introduced a software program - used at the 3 production plants (Italy and the USA) - for the management of data on the origin of raw materials such as quarry location distance from the factory recycled content declaration technical safety and radioactive content data sheets and the expiry of the quarrying permit issued by the government
Raw Materials and Biodiversity
2016 Sustainability Report24
Energy Management
There is no disputing that large amounts of energy are required to power the production processes of ceramic tile plants with consequent direct and indirect impacts on the local area and the environmentThe main indicator used to measure plants energy performance is the mean specific total energy consumption (TEJ) measured in GJt of product transferred to stock As the table below shows this figure is obtained by adding together heat consumption (NGJ) and electricity used (EEJ)
Parameter ndash Definition Unit of measurement
2012 2013 2014 2015 2016
NGJ Mean specific natural gas consumption in relation to the unit of weight of finished product transferred to stock
GJt 557 571 576 578 598
EEJ Mean specific electricity consumption in relation to the unit of weight of product transferred to stock
GJt 111 108 111 108 107
TEJ Mean total specific energy consumption in relation to the unit of weight of product transferred to stock
GJt 668 679 686 685 705
Self-generated electricity as a proportion of consumption
67 68 62 65 75
With two cogeneration plants (for the combined in-house production of heat and electricity) and 16000 msup2 of photovoltaic panels the company certainly sets a new benchmark for the entire ceramic tile industry 2016 saw the replacement of the Fiorano turbine set (the main component of the cogeneration plant) while the one in Mordano was kept in operation 247 factors which led to a 10 increase in in-house electricity production in relation to consumption To provide a clearer idea of the scale of the achievement the amount of electricity the company generated in-house in 2016 (849873 MWh) would cover the average annual consumption of about 37000 households (With consumption per household of 229 MWh - data from the latest ISTAT survey in 2012ndash calculated on the Italian average)
Photovoltaic Plant
kWp kWh produced kg of CO2 not emitted
270021 15937250 8462680
Good Practice
The head office organizations are also optimizing paper and energy consumption In addition to issuing and distributing the energy saving handbook for its offices the company is also trying to maximize savings on the raw material used and specifically the use of paper Internally the company only purchases reams of paper which carry environmental certification and the paper used in offices is collected separately for proper disposal Externally the company distributes a system of merchandising products made mainly from recycled paper and encourages the gradual digitization of its marketing tools as well as publishing all its catalogues in digital format on its Internet sites Florim offers its distributor companies an innovative digital touch screen tool with the pdf versions of the catalogues and other tools for the final consumerIn 2016 Florim decided to adopt a new payslip distribution procedure introducing an online processing system As well as providing employees with new functions and greater operating flexibility thanks to this system the company no longer prints out the monthly payslips saving paper ink and energy The scheme initially involving all office workers has the ambitious target of also including the staff of the Fiorano and Mordano plants
The 16000 square meter photovoltaic plant received recognition from GSE (Energy Management Services) as one of the most innovative installations of its type and from its commissioning (October 2011) up to December 2016 it produced the following results
2016 Sustainability Report 25
Atmospheric Emissions
The industrial facility emits greenhouse gases basically CO2 from the following main sourcesbull combustion from the burning of fossil fuels (such as natural gas)bull processes from the minerals in the raw materials any organic matter in the clays used and any organic additives in tile body mixes
In order to comply with Directive 200387EC (ETS - Emission Trading Scheme) Florim has been reporting and certifying its CO2 emissions since 2013
CO2 emissions 2013 2014 2015 2016
CO2 emissions (t) 102728 103462 111862 132960
CO2 emissions (t) Finished product (t) 033 033 033 035
Emissions from the production cycle 2013 2014 2015 2016
Particulate material (gmsup2 finished product) 223 130 098 118
Lead (gmsup2 finished product) 000 000 000 000
Fluorine (gmsup2 finished product) 014 018 013 012
The increase in CO2 is due mainly to the large increase in the square meters produced (+ 8) and the 247 use of the cogeneration plant However it should be noted that the cogeneration plant provided a 10 increase in in-house electricity generation with lower CO2 emissions than electricity purchased from the grid produced mainly using fossil fuels (source ISPRA Fattori di emissione atmosferica di CO2 e sviluppo delle fonti rinnovabili nel settore elettrico Rapporti [Atmospheric CO2 Emission Factors and Development of Renewables in the Electricity Sector Reports] 2122015)The ratio between CO2 emissions and tons of finished product produced increased because in 2016 the sale of spray-dried material to other companies rose compared to the previous year (emissions from this phase are included in the emissions count but there is no corresponding output of finished product)
In a change from previous years the new GRI-G4 guidelines also require reporting of nitrogen oxide and sulphur oxide emissions Nitrogen oxide (NOx) emissions are within the limits permitted under the integrated environmental authorisation Sulphur oxide (SOx) emissions are not reported here since this figure is not required by the IEA
Transport
The materiality study reveals that transport is a significant factor for both stakeholders and Florim itself The company is not able to measure the impact of transportation of finished product on the local area since all shipments are ex-works However Florim which has been introducing electric vehicles to replace its oldest most obsolete unleaded petrol forklifts for years now has further optimized the handling of materials thanks to the new highly-automated logistics hub created at the via Canaletto location In 2016 about 53 of the vehicles used on the companys premises were electric with no direct greenhouse gas emissions
2016 Sustainability Report26
CEDIT ndash Creative Composition
2016 Sustainability Report 27
Workforce Composition
In 2016 the workforce included 27 people with disabilities 6 women and 21 menBearing in mind the job descriptions arising from the specific industrial sector the breakdown between men and women is in line with the industry average Male office workers and executives earn an average of 10 more than women for jobs of equal responsibility Among blue-collar workers the difference is 7 The company had a total of 29 foreign employees 24 at Fiorano and 5 at Mordano
Manager Executive Office worker
2013 2014 2015 2016 2013 2014 2015 2016 2013 2014 2015 2016
Women 2 3 3 3 3 1 1 1 137 142 133 149
Men 18 21 20 18 21 24 25 28 127 132 128 132
Total 20 24 23 21 24 25 26 29 264 274 261 281
Office ancillary Blue-collar worker Total
2013 2014 2015 2016 2013 2014 2015 2016 2013 2014 2015 2016
Women 18 16 25 19 226 219 212 196 385 381 375 368
Men 64 68 79 64 376 358 356 377 607 603 607 619
Total 82 84 104 83 602 577 568 573 992 984 982 987
Social Responsibility
Employees amp Corporate welfare
Its employees are the heart and soul of Florim they provide its character and its DNA Since 2009 when the current major economic crisis began Florim has undertaken a number of income support programs for its workforce Below we summarise some of the ongoing programmes and others run in 2016bull Ending of the Income Support Program for the Mordano plantbull Agreement with Sassuolo Hospital under which Florim employees and their family members enjoy discounts and shorter waiting times for specialist examinations and outpatient diagnostic tests performed on a private basisbull Special agreements with local health facilitiesbull Tax advice at special rates bull Special terms for banking services with financial consultants on-sitebull Discounts on the purchase of Florim products for employees homesbull Free entry to the Peggy Guggenheim Collection in Venice for employees and concessions for family membersbull Free provision of water and mineral salts in the plants during the summerbull Distribution of fuel vouchers to employees for the Christmas holidays
Summer Play Schemes and Cregraveches
In 2016 the summer play schemes for the children of employees at Fiorano and Mordano were continued for the fifth year in succession Seven different centers across the area between Modena and Bologna hosted 85 children (twice the number of the previous year) the company paid the fee for two weeks attendanceWhats more since 2013 the company has negotiated special terms with local cregraveches which now offer a number of places for employeesrsquo children at a reduced fee
2016 Sustainability Report28
Human Resources Management Policies
In July 2015 on renewal of the in-house supplement to the national employment contract the Management introduced a new phase in its relations with the Trade Unions with the aim of continuing and improving the good relationships enjoyed for decadesThe new company contract applied for all employees at the Fiorano headquarters includes more facilitations for part-time working the willingness to allow flexitime where feasible and the commitment to invest in staff training in order to generate full benefits from intellectual capital The company and the trades unions agreed on a plan to improve efficiency fundamental for maintaining the current level of competitiveness by establishing improvement in Production Efficiency and EBITDA as criteria for the payment of the new Performance Bonus The individual Attendance Score is considered together with these parameters The 2016 Performance Bonus in its first year of application was 20 higher than that paid in 2015 In addition in response to employees requests the Company increased the number of approved canteens extending the choice available and also introduced weekly laundering of work clothing for all production workersWith regard to applications for severance pay advances the Company confirms its commitment to continuing the policy implemented so far
Training
Florim believes that in-house training plays a key role in the companyrsquos development and provides a tool for stimulating and fulfilling the potential of its human resourcesMore than 10600 training hours were provided in 2016 to 847 people with an average of more than 11 hours of training per employee New projects included a 6-month on-line English language course which attracted a large number of participants and two highly structured training courses for the sales division and the communication department A retraining program for workers at the Mordano plant was also completed it comprised 4 technical courses attended by 31 people for an average of 13 hours per person Another new entry for 2016 was an innovative procedure for acquiring information about training needs using an on-line questionnaire available to all employees as well as line managers specific recommendations The Master in Florim project is discussed in depth in the specific section
Health and Safety
Florim was the first Italian ceramics manufacturer to receive BS OHSAS 18001 (Occupational Health amp Safety Assessment Series) certification from TUumlV this international standard certifies the implementation of an internal management system oriented towards occupational health and safetyThis major award confirms the companys constant commitment to the well-being of its employees Every year in addition to engineering inspections and machinery maintenance a number of hours of safety training are organised to raise awareness among workers and supervisors Specifically in 2016 2849 hours were dedicated to safety training and a significant reduction in injury rates was recordedMoreover BLSD refresher courses are continuously held for the team of Florim employees trained in first-aid operations and the use of the defibrillators available on site
2012 2013 2014 2015 2016
Number of workplace injuries 63 62 74 56 43
2016 Sustainability Report 29
The Master in Florim organized for the fourth time in 2016 is a vocational training project which aims to bridge the gap between education (high school or university) and the world of work The program which is one of the companys Social Responsibility projects sets out to help young people to get to know the company through a well structured work experience plan It offers a distinctively northern European approach with a method which alternates classroom teaching with internships in the various areas of the company Participants new university or high school graduates specialising in various subjects all below 30 years of age are therefore able to gain hands-on experience of all Florim departments from RampD to the production process and product distribution for an all-inclusive vision The MASTER courses ambitious aim is to match the individual participants talents with the companys real needs At the end of each edition the company hires all or some of the selected candidates enabling it to acquire new skills new experiences and new energy
Master 40 in figures
20 young people taking part6 months of training13 external lecturers264 hours of classroom teaching392 hours of practical training4 company visits (Ferrari Tetrapak Cremonini and Ducati)50 days of work experience on rotation involving 15 departments1 month of project work
The projects prestige is enhanced by its economic context since Florim pays the young participants for the entire period and its aim is to deal with the thorny problem of youth unemployment The Master has won approval from various faculties at major Italian universities The project was also a winner in the Emilia-Romagna Regions 2016 awards for Corporate Social Responsibility projects run in the local community A prize in the ldquoBusiness and Educationrdquo category was assigned to the Master project which aims to give young people the skills required for sustainable development
Master in Florim
2016 Sustainability Report
Watch the videoof the 4th edition
2016 Sustainability Report30
Local Community amp Culture
This chapter describes a number of programs Florim runs for the local community in the area where it originated and where it has been working for more than 50 years
Politecnico di Milano
Since the 20052006 academic year Florim has been a partner sponsor of a large number of Postgraduate Courses run by POLIDesign the Politecnico di Milano consortium which organizes its Master Degree coursesAlso in association with POLIDesign since 2012 Florims Milan showroom has hosted several design events for architects and designers of every nationality
Aziende modenesi per la RSI
ldquoAziende Modenesi per la RSIrdquo an independent open inclusive association of companies in the Modena area which believe in the principles and values of Corporate Social Responsibility was established by public deed on 30 September 2014 with Florim as a founding member Florim hosts the associations member companies every year to discuss the various topics proposed
Premio Lucchese
The Premio Lucchese presented for the twenty-ninth time in 2016 was established in memory of Giovanni Lucchese and consists of scholarships awarded to students at the ldquoAlessandro Voltardquo Technical High School in Sassuolo who graduate with full marks The award ceremony held every year at the Florim Gallery in association with Societagrave Ceramica Italiana of Bologna includes a talk given by a leading personality on a topic of current interest to an audience of eager young listeners
Intrapresaelig Collezione Guggenheim
As befits a company that combines the values of its local community and historic and artistic heritage with a flair for research and innovation Florim recently launched a partnership with the Peggy Guggenheim Collection Since its foundation Florim has always had a unique ability to incorporate the true cultural significance of its industry in its business model and by this project once again confirms its commitment to promoting art by supporting a collection of extraordinary beauty
Fondazione Ing Giovanni Lucchese
More than thirty years after the untimely death of Giovanni Lucchese ndash founder of what was then Floor Gres currently Florim ndash in 2013 his family established a Foundation in his name which since then has funded organizations and associations that support families in need in the ceramics district The Foundation also supports a variety of projects such as the summer play scheme for employees children the Premio Lucchese and the Florim HealthampTraining Center described in more detail below
The main projects undertaken in 2016 include the funding of the purchase of 10 defibrillators for the Municipality of Fiorano and the contributions made to the purchase of paediatric ambulances for the local area and to support the Parish charitable organizations and social services in the district
Watch the Premio Lucchese video
The project run jointly by Florim and Sassuolo Hospital adopts a completely new model combining industrial culture and healthcare in an original way to benefit the local people and community thanks to the coming-together of a ceramic coverings manufacturer and the public-private joint venture Ospedale di Sassuolo Spa Florim HealthampTraining is the synthesis of this idea an experimental center which promotes local training for healthcare and other staff health education and information advanced medical simulation and research
The Center
On the main Florim site and opened on 16 April 2014 the Center is 550 square meters in area and contains a modular lecture theatre able to seat over 100 people and a number of classrooms for seminars and lessons At its heart is a state-of-the-art control room crammed with technology that operates dummies capable of reproducing human functions of all kinds Advanced simulation is a major aid to maintaining the skills of emergency healthcare workers with a particular focus on pediatric and neonatal resuscitation
Health meetings
Designed as a space for community use the Center also aims to become a place where all sections of the population - workers schoolchildren parents teachers volunteers and even just members of the public - can learn about preventive health care and acquire first aid skills After the distribution to Florim employees of a questionnaire surveying their training needs and preferences a Center Scientific Committee of Sassuolo Hospital medical personnel was appointed and drew up a plan of bi-monthly ldquoHealth meetingsrdquo All meetings are led by doctors with expertise in the various topics who answer the many questions from the audience at the end of their talks Between its opening and the end of December 2016 the Center hosted 13 meetings on a variety of topics attended by about 1000 people including employees their family members and the community at large
Healthcare discounts for Florim employees
The project also includes a major welfare program for all Florim employees and their family members entitling them to discounts and shorter waiting times for specialist examinations and outpatient diagnostic tests performed on a private basis
American Heart Association
The world-famous American Heart Association (AHA) is the oldest and most respected American voluntary organization dedicated to the fight against cardiovascular diseases and strokes In 2015 the AHA via the Simaid International Training Center named the Florim HealthampTraining Center as an Authorized Training Site for basic and advanced cardiopulmonary resuscitation
Florim HealthampTraining Center
2016 Sustainability Report
Watch the Health amp Training Center video
2016 Sustainability Report32
Product Responsibility
Here we summarize the concept of Made in Florim denoting a product that encapsulates the companys core values passion innovation a constant commitment to improvement and corporate social responsibility
Florim product certifications
CE Marking guarantees the user that the materials purchased meet the requirements of the relevant regulations and that the characteristics concerned are virtually unchanged for all production lots It is a declaration of conformity which protects the consumerrsquos safety The presence of the CE Marking on packaging guarantees that Florim products comply with the relevant regulatory requirements
Ecolabel (EC Regulation 662010) is a certification granted to products which comply with ecological and performance criteria set at a European level concerning raw material extraction supplier selection manufacturing processes packaging distribution use and disposal The certified Florim collections are Architech Ecotech Reverse Walks 10 by Floor Gres and Pietra del Nord under the Rex brand
Several ceramic tile collections bearing the Florim brands have earned certification from Bureau Veritas for their pre-consumer recycled material content These articles are therefore fully eco-compatible and can meet the environmental sustainability requirements imposed by many international certifications
Florim is a member of the US Green Building Council (USGBC) the most important association which promotes the reduction of buildings negative impact on the environment To allow the effective monitoring a projects level of sustainability the USGBC has developed a certification procedure for the development of sustainable buildings which assess and certifies the sustainability of a building in its entirety Florim materials are able to help to gain LEED points in a number of areas (data available on the Florim brand websites)
Florim has achieved the prestigious Greenguard certification for all its products Issued by the American body UL Environment this certification aims to reduce indoor pollution caused by interior design systems and materials UL Environment thus aims to protect health by improving air quality and reducing peoples exposure to chemicals and other pollutants Florim has also achieved Greenguard Gold Certification which imposes even stricter limits to confirm that a given product is suitable for use even in locations such as schools and health care facilities
The EPD or Environmental Product Declaration is a document which defines the environmental impacts arising from production In 2016 Florim participated in the study - certified by the German organization IBU - performed on the ceramics industry average data which aims to raise international awareness of the excellence of the environmental standards achieved
Beyond the standardsMade in Florim products are a guarantee of safety highly innovative content and eco-friendliness The people who produce them work in a safe place and in ethically sustainable conditions Due to their nature all Florim products are guaranteed free from pollutant emissions do not accumulate electrostatic charges are frostproof and completely inert and are undamaged by contact with flames The Groups Internet sites and collection catalogues contain the technical data sheets which detail the product information (slip-resistance breaking strain abrasion resistance etc) for every collection as well as its recycled material content with the relative certificates
During the period under consideration no banned products were placed on the market and the company was not found guilty of any breaches of the law with regard to data protection or its marketing and communication activities
EU Ecolabel nr IT2104
2016 Sustainability Report 33
Quality SystemThe current ISO 9001 standards define quality as the ability to satisfy explicit or implicit needs via a product or a service A Quality System implies constant improvement of company processes in order to realise products that always satisfy the customerrsquos needs Further to the 2016 audit Florim obtained the renewal of its UNI EN ISO 90012015 certification for the design manufacture and sale of all categories of ceramic tile
Objective Indicator 2012 2013 2014 2015 2016
Continual improvement of control of the production process
Percentage of First Grade Product ()
924 943 942 952 956
Quality rate () 883 905 903 905 909
Scrap rate () 44 41 42 42 49
Productivity (sq mhour) 186 188 186 190 200
Improvements in sales performance and customer satisfaction
Innovation rate () 330 296 367 455 364
Coverage () 795 714 814 813 816
Total portfolio shippable within one month ()
911 837 888 893 897
Optimization of range and stocks
Obsolete stock () 172 126 165 120 69
Stock turnover rate () 13 15 16 15 16
Gradual elimination of disputes complaints and claims concerning service
Square meters affected by complaints ()
17 12 08 12 09
Complaints by number of order items ()
10 11 11 10 10
Gradual improvement in staff skill levels
Employee turnover () 15 23 04 04 12
KeyPercentage of first grade product percentage ratio between the square meters of first grade products and the total square meters transferred to stockQuality rate percentage ratio between the square meters of first grade product transferred to stock and the square meters leaving the pressesScrap rate percentage difference between square meters of material leaving the presses and square meters of product actually transferred to stockProductivity ratio between the square meters transferred to stock and the total hours worked in the plantInnovation rate ratio between square meters sold belonging to series designed in the last three years and total square meters sold Florim uses this indicator to assess the effectiveness of its design process in terms of salesCoverage percentage ratio between square meters available for immediate shipment and the square meters on orderTotal portfolio of orders shippable within one month percentage ratio between the square meters which can be shipped in 30 days and the square meters on orderObsolete stock percentage ratio between the square meters of substandard discontinued produce and the total square meters in stock Stock turnover rate ratio between the square meters sold and the square meters in stockSquare meters affected by complaints percentage ratio between the square meters affected by complaints and the square meters soldComplaints by number of order items percentage ratio between the number of complaints and the number of items orderedEmployee turnover percentage ratio between the number of employees leaving the company and being replaced and the workforce at the start of the year
2016 Sustainability Report34
Casamood - Neutra 60 Collection
2016 Sustainability Report 35
OUR COMMITMENTS
The promises we keptIn our last Sustainability Report we committed to achieving a large number of objectives the following are the outcomes we attained
Relaunch of the ldquoCEDIT ndash Ceramiche drsquoItaliardquo brand OBJECTIVE ACHIEVED
Launch of the FLORIM stone brand OBJECTIVE ACHIEVED
Installation of a new latest-generation kiln at the Mordano plant OBJECTIVE ACHIEVED
Transfer of the Moscow showroom to new premises SCHEDULED FOR 2017
Creation of a new gatehouse at the Mordano plantOBJECTIVE POSTPONED TO GIVE PRIORITY TO THE CONSTRUCTION OF THE NEW FACTORY
Introduction of ERP system at Florim USA OBJECTIVE ACHIEVED
Installation of a new spray dryer and raw material handling system at Florim USA
OBJECTIVE ACHIEVED
Economic Responsibility
Renewal of certification of the Florim environmental and energy management system
OBJECTIVE ACHIEVED
Award of new certifications for collections manufactured with a high recycled material content
OBJECTIVE ACHIEVED
Continuation of work to reduce environmental impacts at Mordano especially with the reduction of energy costs
OBJECTIVE ACHIEVED
Continuation of the work to remove asbestos cement roofing materials at the Mordano plant
OBJECTIVE ACHIEVED
Expansion of the system which conveys rainwater to the treatment plant OBJECTIVE ACHIEVED
Reduction of the noise emissions of the air filtering systems OBJECTIVE ACHIEVED
Increase of recycling targets through constant awareness-raising amongst all staff and optimisation of recycling facilities
OBJECTIVE ACHIEVED
Continuation of replacement of the diesel forklift trucks for use on outdoor yards with electric vehicles
OBJECTIVE ACHIEVED
Environmental Responsibility
Running of fourth edition of Master Florim course with new procedures OBJECTIVE ACHIEVED
Creation of an internal refreshment area for the Fiorano office staff OBJECTIVE ACHIEVED
Improvement of corporate welfare through the activation of new free services and discounts tailored to employees needs
OBJECTIVE ACHIEVED
Continuation of the health meetings for the local community in association with Ospedale di Sassuolo Spa
OBJECTIVE ACHIEVED
Organization of new community events at Florim Gallery OBJECTIVE ACHIEVED
Organization of Florim Family Day 2016 A PARTY WAS ORGANISED FOR EMPLOYEES
Social Responsibility
2016 Sustainability Report36
The targets we set for ourselvesWe aim to achieve the following objectives in 2017
Economic Responsibility
Construction of a new factory at Mordano to produce large slabs
Launch of the project to unite the Florim spa sales organizations
Total restyling of the corporate and brand Internet sites
Launch of the HUB project - Intranet CRM Marketing Automation
New plants at Florim USA a press two sorting lines a polishing and rectifying line
New working spaces and cloakrooms for technical staff at the American plant
Environmental Responsibility
Purchase of a new cogenerator for the Mordano plant
Introduction of a new rainwater collection system at Fiorano
Land reclamation project involving covering of the Rio Spezzano stream at Fiorano
Implementation of new software for continual monitoring of energy impacts at Fiorano
Modernisation of the compressor room to improve energy impacts at Mordano
Increase of recycling targets through constant awareness-raising amongst all staff and optimisation of recycling facilities
Continuation of replacement of the diesel forklift trucks for use on outdoor yards with electric vehicles
Social Responsibility
Improvement of corporate welfare through the activation of new free services and discounts tailored to employees needs
Continuation of the health meetings for the local community in association with Ospedale di Sassuolo Spa
Organization of new community events at Florim Gallery
Organization of a new event for Florim spa employees
New offices for hospitality and events staff at Fiorano
2016 Sustainability Report 37
FLORIM USA
Profile and Economic ResponsibilityFlorim USA with registered office at Clarksville - Tennessee - and its subsidiary Florim Solution Inc have been part of the Florim Group since 2000 The Florim USA manufacturing plant one of the largest most technologically advanced in the United States produces porcelain stoneware tiles for the residential market and undertakes commercial projects in North America During the last few years Florim USA has implemented a growth and process optimization strategy which has generated significant technological progress with more innovations planned for the future The strategy adopted will put Florim USA at the worldwide state of the art in porcelain stoneware tile manufacture
In 2016 of the 18 million USD invested 147 was allocated for installation of a latest-generation raw material handling system and a large spray-dryer with an innovative sorting system Improvements were made to other parts of the process to increase their efficiency leading to a further reduction in emissions and scrap rates Additional investments are planned during 2017 to continue this dual trend of rising production with mitigation of environmental impact
The new Florim Flagship Store in New York (152 Madison Avenue 32nd Street)
2016 Sustainability Report38
Environmental ResponsibilityFlorim USA implements the same environmental policy as Florim and is committed to achieving the following objectives
bull reduction of the energy used in the production processbull improvement of the waste management process with a focus on recovery and reusebull introduction of new more eco-efficient technologiesbull adoption of integrated management systems
Florim USA has been pursuing a strategy of careful management of its operations and environmental impact for a number of years Here we summarise the main actions taken and the results achieved in 2016
bull installation of a latest-generation spray-dryer in 2016bull installation of an innovative raw material handling system in 2016bull 100 recycling of wastewater within the processbull optimisation of the management of water bottles with elimination of about 34200 of them per annumbull reuse of almost all production scrap (+99)bull 157000 kg of cardboard recycled in 2016bull award of two different types of product certificationbull 9300 kg of plastic recycledbull recycling of 17 complete trucks of pallets
Environmental Projects and Awards
Florim USA has received Clarksville Montgomery County Green Certification (CMCGC) CMCGC is a program designed to help companies learn and implement best practices in the area of environmental stewardship to sustain the local communityrsquos resources through a series of free workshops taught by local environmental specialists Since 2014 Florim has allocated some of its Environment Managers time for the running of these workshopsFlorim USA earned this green company certification thanks to a large number of projects first and foremost the one which eliminated the use of disposable water bottles replaced with individual reusable bottles provided by the company and a series of fill-up stations About 34200 bottles are removed from the waste cycle every year
During the latest phase of its plant optimization Florim USA has implemented a thorough construction material reuse policy In the various stages of demolition of the old plants including the old storage silos the concrete debris was recovered and reused in other construction worksThis project alone generated 11500 tons of recycled aggregate as well as several hundred tonnes of metal sold to a recycling firm
Environmental management system and eco-compatible products
Florim USArsquos products help builders and designers to meet the requirements for sustainable buildings as defined by the United States Green Building Council (USGBC) through the LEED Green Building Rating System This protocol evaluates and certifies the environmental sustainability of a building as a unit from its design to its day to day management To gain LEED credits many of the Florim USA product lines contain a significant percentage of recycled material (40 or more)This feature contributes to an increase in the LEED score in the projects where these products are installed In 2014 Florim USA together with a large number of other US tile manufacturers and the Tile Council of North America drew up a type III environmental product declaration (EPD) certified under the ISO 14025 standard This ceramic tile life-cycle analysis enables Florim USA products to gain LEED points under the new LEED v4 protocol
2016 Sustainability Report 39
Water use (gallonsper million square feetof finished tiles)
208137 216246 204962 195280 194268
Energy use
2012 2013 2014 2015 2016
Cubic feet of natural gas per million square feet of finished tiles 9343383 9149721 8331170 8390503 8380000
kWh per million square feet of finished tiles 510972 491171 450594 465976 490300
Emissions
Particulate material lt 21024 tonnes per annum
SO2 (sulphur dioxide) lt 1674 tonnes per annum
VOC (volatile organic compounds) lt 1245 tonnes per annum
NOx (oxides of nitrogen) lt 1501 tonnes per annum
Environmental performance indicators ndash summary
The following are the main environmental indicators related to the impact and performance of Florim USA during 2016
Pre-consumer recycled material
Its internal material recycling processes enable the company to minimise its environmental impact since most of the material which would otherwise be sent to landfills or other waste treatment centers is reusedbull Wastewater is entirely recycled within the production process without any discharge into the municipal drainsbull The material in the collection bags from the tile body and glaze preparation areas the press and glaze application is entirely recycled within the processbull All scrap fired tiles are entirely recycled within the processbull 157000 kg of cardboard was sold to an external recycled material dealerbull 17 trucks of unusable wooden pallets were sold to a pallet regeneration companybull About 9300 kg of waste shrink-wrap plastic film was recovered and recycled
Post-consumer recycled material
About 82000 kg of glass was removed from the flow of waste destined for the local landfill and recycled within the process Florim USA has signed an agreement with the local landfill for consignment of all the glass it handles which is collected and set aside for recycling
Water use disposal and reuse
The water used during the production process is recycled continually therefore no water is discharged into the municipal drains
The 2016 emissions figures are in line with those for previous years well below the standards laid down
Water use 2012 2013 2014 2015 2016
Water use (gallons per million square feet of finished tiles) 216246 204962 195280 194268 203928
2016 Sustainability Report40
Social Responsibility
Employees
The Florim USA workforce comprises 348 staff employed at the production site the Clarksville and Nashville outlet stores and the Florim Solution offices Of the 348 employees 273 are blue-collar workers and 75 office staff 5 employees are Italians on secondment to the United States Florim USA offers a number of benefits to full time employeesbull health and dental care insurancebull Vision insurancebull life insurance for employees and optionally for family membersbull temporary and permanent disability supportbull employee pension plan
2012 2013 2014 2015 2016
Workplace injuries 50 41 22 29 27
The Employee Assistance Program (EAP) also offers support to employees and their families in the event of psychological difficulty or other problems that can have a negative impact on their quality of life Florim USA supports all the costs of the program
Equal opportunities
Florim USA provides equal opportunities in all employment practices to all qualified employees and applicants regardless of race colour religion gender national origin age disability or membership of the armed forces or any other category protected by federal state or local laws
Health and safety
FLORIM USA is committed to ensuring a safe healthy workplace for all employees It therefore replaces old and obsolete equipment with new technologically more modern machinery and updates safety plans as new information gradually becomes availableAs well as an internal supervisor Florim USA has also appointed a health and safety committee which constantly monitors the plans effectiveness and makes any changes requiredThere are currently 20 plant employees who hold CPRfirst aid qualifications They occupy a variety of positions and work different shifts within the plant and have volunteered to attend training courses sponsored by the company for the award of these qualifications
Training
In 2016 every Florim USA employee attended an average of about 25 hours of training The training provided covered the operating procedures for the new equipment the main safety plans and the procedures for use of existing equipment for new employeesAll new staff undergo specific training for their department focusing on the safety-related aspects of the department concerned as well as more generalized safety training
Some of these themes includebull safe correct use of forklift trucksbull training on work in confined spacesbull shutdownwarning procedures and safe electrical practicesbull safe lifting procedures
2016 Sustainability Report 41
Florim USA ndash (Clarksville Tennessee)
For employees wishing to continue their education Florim USA offers assistance through the Educational Assistance Program It provides aid with the cost of education and textbooks and is available for any employee wishing to study for a technical qualification a diploma or a degreeThe plant staff training and education plan also includes various training schemes at Florim Italy where employees are instructed in the use of new equipment before it is installed at the American plantThroughout 2016 Florim USA will continue to provide a free e-learning course on its website for architects engineers and contractors (AEC) to improve their knowledge of sustainable porcelain stoneware tiles
Employee welfare activities
Florim USA employee picnic - In 2016 the company once again held its annual picnic for employees offering them a wide variety of foods games activities and live shows in an event which provided an unforgettable days enjoyment Within the event participants received prizes in the form of vouchers and gifts
Employee anniversary dinner - 2016 again saw the usual dinner to honour Florim USA employees with 5 10 15 20 or more years of service A special evening event was held in the presence of the Chairman and the other managers to celebrate the loyalty and hard work these employees have contributed during their careers with the firm
2016 Sustainability Report42
Local Community
During 2016 Florim USA continued to provide its support to a number of projects in its local areaSome of the main projects include
Scholarships - As part of its work to support the local community Florim has an established scheme which awards scholarships to deserving students at the Austin Peay State University in memory of Florim Group founder Giovanni Lucchese In December 2016 a delegation of Florim representatives attended a scholarship presentation lunch at the Austin Peay State University hosted by the President of the University
Montgomery County Green Certification Program - Florim USA staff actively participate in the Montgomery County Green Certification Program which aims to help companies learn and implement best practices with regard to safeguarding the environment and environmental resources
Donations - In 2016 the company again made a large number of donationsbull book collection for the Austin Peay State University Employees made a generous donation of used books in good condition for children and young people of the APSU in the hope of further promoting the education of future generationsbull to Community Cares the national organization that promotes the acceptance and social inclusion of individuals with Downs Syndromebull to the Aspire Clarksville Foundation a 501(c)(3) charitable foundation whose mission is to continuously improve the economy and the livability (quality of life) of the community by attracting significant capital investment and expansion by businesses and corporations thereby creating better opportunities and higher paying jobs for residentsbull to the Alzheimerrsquos Association a non-profit voluntary organization dedicated to the care and support of Alzheimers Disease sufferers and research into the condition Its aim is to eliminate the disease through the advancement of research to provide and enhance care and support for all affected and to reduce the risk of dementia through the promotion of brain health
Other activities - Every year Florim USA participates in the United Way Drive initiative to support local non-profit organizations which provide economic assistance and psychological support to persons in difficulty
Florim USA provides regular support to the Salvation Army by collecting canned foods for persons in needIn 2016 the company again organised a canned food collection for Manna Cafeacute in Clarksville TN Manna Cafeacute is a local non-profit organization based in Middle Tennessee with the primary mission of meeting peoples fundamental need for food before encouraging them to permanently change their lives for the better More than 15 of the population in Montgomery County are affected by food insecurity (about 28000 people) The percentage of children affected is about 215 a third of whom are excluded by income from federal programs such as free school mealsFinally donations were made tobull American Lung Association the leading organization working to save lives by improving lung health and preventing lung disease through research and educationbull Cheer for a Cure an organization that gives money directly to afflicting families who have a loved one suffering from cancer and need assistance to alleviate the added financial stressbull Habitat for Humanity Since 1992 Habitat for Humanity in Montgomery County Tennessee has worked with 93 low-income families with more than 210 children to revitalise various parts of Clarksville-Montgomery County by building new homes
2016 Sustainability Report 43
Quality SystemFlorim USA works under a Quality System certified to UNI EN ISO 9001 standards The following are some of the figures in brief
Objective Indicator 2012 2013 2014 2015 2016
Optimisation of control of the production process
Percentage of First Grade Product ()
932 917 940 949 9510
Quality rate () 883 857 893 906 909
Scrap rate () 56 65 48 45 45
KeyPercentage of first grade product ratio between square feet of first grade material and total square feet transferred to stockQuality rate ratio between square feet of first grade material transferred to stock and square feet pressedScrap rate ratio between square feet pressed and square feet of product actually transferred to stock
Other ActivitiesFlorim USA and trade shows
In 2016 Florim USA participated at a number of shows and events including Coverings the AIA Tennessee Convention Hardscape North America Total Solutions Plus Neocon International Pool - Spa and Patio Expo These events targeted at the various categories of industry professionals such as dealers and designers gave Florim USA the opportunity to present its new range of indoor and outdoor products
Design Center
In December 2015 Florim USA opened a design center showroom in Nashville (TN) in a strategic location close to the airport and the city center With a spacious area to host individual CEU presentations and workshops this design center has the potential to be a major resource for local architects In 2016 it was also awarded the ldquoOutstanding Boothrdquo booth prize at the 33rd edition of the Annual Home Decorating and Remodeling Show The location is the ideal place for sharing ideas finding inspiration and putting professionals and architects in touch with each other
Florim Nashville Design Center
2016 Sustainability Report44
GRI International Sustainability Indicators SDGsThe information below illustrates the correspondence between the Florim (Italian companies) 2016 Sustainability Report the GRI-G4 guidelines and the icons of the Sustainable Development Goals (SDGs) definitively adopted by the United NationsA description of the SDGs is available at wwwglobalcompactnetworkorg
GRI indicators
Description Page Reference to SDGs
1 Strategy and Analysis
G4-1 Statement from the most senior decision-maker of the organization 5
2 Organization profile
G4-3 Name of the organization 2
G4-4 Primary brands products andor services 9
G4-5 Location of the organizations headquarters 9
G4-6 Number and names of the countries where the organization operates 9
G4-7 Nature of ownership and legal form 14
G4-8 Markets served 9
G4-9 Scale of the organization 8 8
G4-10 Significant changes regarding size structure or ownership 8
G4-11 Employees covered by National Collective Bargaining Agreement 27
G4-12 Describe the supply chain 16
G4-13Significant changes regarding the organizationrsquos size structure ownership or its supply chain
Reporting process
launched
G4-14 Precautionary principle 22
G4-15 List of external commitments in which the company is involved 22 32 33
G4-16 Associations or interest groups in which the company is involvedwwwflorimit gt
about us gt partnerships
3 Identified material aspects and boundaries
G4-18 Process used to define the report content 6
G4-19 Material aspects 16
G4-20 Boundaries of each material aspect 6
G4-21 Boundaries of each material aspect outside the organizationPartial reporting
(pages 6 16)
G4-22 Explanation of the effect of any restatements of information provided in previous reports 6
G4-23Significant changes from previous reporting periods in the scope boundaries or measurement methods
6
3 Stakeholder engagement
G4-24 List of stakeholders 15
G4-25 Identification of stakeholders 15
G4-26 Stakeholder engagement 6 16
G4-27 Key topics and concerns that have been raised through stakeholder engagement 16
4 Boundary of the Report
G4-28 Reporting period 6
G4-29 Date of publication 2
G4-30 Reporting cycle 6
G4-31 Contacts and addresses for additional information 46
5 GRI Content Index
G4-32 Reporting option chosen 6 7
G4-33 External assurance of ReportThe Report is not
externally assured
2016 Sustainability Report 45
GRI indicators
Description Page Reference to SDGs
6 Governance
G4-34 Governance structure 14
7 Ethics and integrity
G4-56 Values principles standards and norms of behavior 13 16
Economic performance indicators
EC1 Direct economic value generated and distributed 19 25789
EC5 Wages 27 158
EC7 Development and impact of infrastructure investments and services supported 23 24 31 257911
Environmental performance indicators
G4-EN2 Percentage of materials used that are recycled input materials 17 22 23 812
G4-EN3 Energy consumption within the organization 24 781213
G4-EN6 Reduction of energy consumption 17 24 71213
G4-EN7 Reductions in energy requirements of products and servicesPartial reporting
(page 22)71213
G4-EN8 Total water withdrawal by source 17 23 6
G4-EN10 Percentage and total volume of water recycled and reused 17 21 23 612
G4-EN11 Biodiversity 23 615
G4-EN15 Total indirect greenhouse gas emissions by weight 25 3121315
G4-EN16 Total indirect greenhouse gas emissions by weight 25 3121315
G4-EN19 Reduction of greenhouse gas emissions 8 24 1315
G4-EN21 NOx SOx and other significant air emissions 25 31215
G4-EN22 Total water discharge by quality and destination 23 6
G4-EN23 Total weight of waste by type 17 22 3612
G4-EN27 Impact mitigation of environmental impacts of products and services 23 68121315
G4-EN29 Monetary value of significant fines 22 16
G4-EN30 Significant environmental impacts of transporting products and goodsmaterialsPartial reporting
(page 25)111213
Social performance indicators
G4-LA1 Total number and rates of new employee hires and employee turnoverPartial reporting
(pages 17 27)8
G4-LA6 Workplace injury ratesPartial reporting
(page 17)38
G4-LA9 Average hours of training per year per employee 28 48
G4-LA12Composition of governance bodies and breakdown of employees according to gender age group etc
27 58
G4-LA13 Ratio of basic salary and total remuneration of women to men 27 5810
Society
G4-SO1 Operations with local community engagement 12 31 16
G4-SO3 Operations assessed for risks related to corruptionPartial reporting
(page 13)
Product responsibility
G4-PR1 Assessment of health and safety impacts for improvement 23 32
G4-PR3 Type of information about products and services required by the procedures 32 12
G4-PR5 Proceedings relating to customer satisfaction including surveys conducted to measure it 33
G4-PR6 Sale of banned or disputed products 32
G4-PR8 Number of substantiated complaints regarding breaches of privacy 32 16
2016 Sustainability Report46
Your Assessment
You are kindly requested to take a few minutes of your time to give us your assessment and any suggestions to enable us to improve future editions of our Sustainability Report
Click here to send us your feedback
To keep up to date with our business
Spazio CEDIT - interior (Milan)
wwwflorimiten
Florim Ceramiche
Florim4Architects
Florim_ceramiche
Florim Ceramiche spa
Florim Ceramiche
Florim Ceramiche
For any further information please feel free to contact our communications department comunicazioneflorimit
2016 Sustainability Report 47
Premio Lucchese - Florim Gallery (Fiorano Modenese - Modena Italy)
Intrapresaelig Guggenheim Collection - Massimo Bottura in Florim Gallery (Fiorano Modenese - Modena Italy)
Panathlon Christmas Gala - Florim Gallery (Fiorano Modenese - Modena Italy)
2016 Sustainability Report48
White Christmas Party - Florim Gallery (Fiorano Modenese - Modena Italy)
Cersaie - Mario Biondi in Florim Gallery (Fiorano Modenese - Modena Italy)
Dal buio alla luce - Social event at Florim Gallery (Fiorano Modenese - Modena Italy)
2016 Sustainability Report 49
Florim Gallery entrance (Fiorano Modenese - MO)
2016 Sustainability Report52
Florim Ceramiche spaVia Canaletto 24 - 41042 Fiorano Modenese (Modena Italy) - Tel +39 0536 840111 - wwwflorimit
2016 Sustainability Report4
FLORIM stone Marble Statuario and Stone Black
2016 Sustainability Report 5
Welcome to the ninth edition of our Sustainability Report a document which is gaining wider and wider appreciation amongst those who follow the Florim Grouprsquos performance for its synthesis of the companyrsquos many activities in Corporate Social Responsibilities
During the last year we have once again shown a strong commitment to a business approach which goes beyond the achievement of economic results alone and involves social projectsintended to last over time with the secondary benefit of enhancing the image of the Florim name
I believe this document is a true confirmation that despite uncontrollable global environmental uncertainties there are multiple opportunities to keep the high-quality levels that Florim has always achieved
We have made further large investments in our factories in Italy and in the USA and we will continue to invest in the years to come We have given the same level of importance to investments in ourimage adding new showrooms to those already established in Milan to give visibility to CEDIT the brand which has been rediscovered and relaunched this year with a specific exclusive product range
The ldquoGalleryrdquo and the ldquoHealthampTrainingrdquo Center continue to be hives of activity the company continues to hold its doors wide open to young people with the ldquoMaster in Florimrdquo program and the ldquoFondazione Ing Giovanni Luccheserdquo continues to engage in important charitable work
I am very proud to state that all Florimrsquos employees in Italy and abroad are the companyrsquos greatest resource So I would like to say a well-deserved ldquothank yourdquo to all those whose constant hard work sense of belonging and mutual cooperation represent a priceless assets that consolidate over time
Enjoy the report and thank youClaudio Lucchese
Letter to stakeholders
2016 Sustainability Report6
Our Sustainability Report
Methodological Framework and Reporting Perimeter
Writing and distributing its Sustainability Report enables Florim to communicate with its stakeholders with transparency describe the results achieved and set our future goals in an approach based on engagement and continual improvement
Drawn up annually in accordance with the GRI-G4 Guidelines for Sustainability Reports (the G4 edition of the Global Reporting Initiative guidelines) the report issued for the ninth time this year aims to report on the economic environmental and social aspects of the companys operations from a point of view more oriented towards the shared value produced for its stakeholders
The reporting process with in accordance-core compliance level is co-ordinated by Florimrsquos communications department and supervised by the Finance Department with the invaluable assistance of many colleagues especially the staff of the management accounting technical human resources and administration departments The data and information it contains are obtained from the companys IT systems and databases
The Report refers to all the companies in the Florim group on the same principle as the Groups consolidated financial statements The figures provided in the reporting section refer to our Italian location while the fourth section contains a brief Sustainability Report for Florim USA As already stated this Report is intended as an aid to dialogue and therefore the language used is plain and to the point
The 2016 Sustainability Report also published in English will be distributed as follows - provision of a copy to all employees at the Italian and American sites enclosed with their pay stubs- publication of the PDF file on the corporate Intranet and the florimit website- distribution to member companies of the new ldquoAziende Modenesi per la RSIrdquo (Modena companies for social
responsibility) association- mailing to local institutions and the relevant trade union representatives- distribution to the local press and to the specialist press during exhibitions and site visits- distribution to key clients and architects- mailing to the main domestic agenciesauthoritiesassociations involved in issues related to sustainability and the
environment
Florim produciont plant (Fiorano Modenese - MO)
2016 Sustainability Report 7
CEDIT - Storie Collection | Giorgia Zanellato amp Daniele BortottoNamed as Best of the Best at the 2017 Red Dot Design Award
2016 Sustainability Report8
Giovanni Lucchese pioneers the production of extruded clinker tiles and Floor Gres is founded in the heart of the Sassuolo production district
Floor Gres is the first Italian manufacturer to produce single-fired white body tiles
The Swimming Pool Division is established within Floor Gres
Floor Gres is one of the first companies in the world to start the manufacture of porcelain stoneware tiles
Claudio Lucchese son of the founder takes over the reins at Floor Gres after his fathers untimely death
Floor Gres acquires Cerim Ceramiche
Floor Gres and Cerim merge to create Florim
Florim acquires Rex Ceramiche Artistiche
The Project Division forerunner of todays Florim Solutions is created
Incorporation of Florim USA a production and distribution company destined to become a leader on the American market
Florim acquires Casa dolce casa
The Casamood brand is born
A logistics hub is opened in Brazil
The new multifunctional Florim Gallery is opened and the Florim Logistics area is completed at the Florim headquarters The Fondazione Ing Giovanni Lucchese foundation is established
The first Flagship Store is opened in Moscow
The Milan Flagship Store moves to a location in the very heart of the city A new Flagship Store opens in the center of New York
Florim relaunches the historic CEDIT - Ceramiche drsquoItalia brand (which opens its first flagship space in Milan) and FLORIM stone the Groups first brand focusing on the interior design sector
MADE IN FLORIM
Over 50 years of history
Over 1300 employees worldwide
27 million square meters produced every year
406 million Euro turnover
1424 tons of CO2 not emitted in 2015 thanks to the photovoltaic system
It takes more than figures to define a company Today passion innovation a constant commitment to improvement and corporate social responsibility are the core values of a new way of doing businessthe MADE IN FLORIM way
Our History 1962
1967
1976
1981
1984
1990
1992
1994
1995
2000
2005
2006
2011
2013
2014
2015
2016
Watch the Floriminstitutional video
2016 Sustainability Report 9
Our Locations The map shows the grouprsquos headquarters showrooms production plants and logistic hubsFlorim brand products are available from top international customers and importers
Our Brands
Floor Gres is the brand specifically for innovative architectural projects The Floor Gres product range meets all the many and varied needs of contemporary architecture in terms of design and technical capabilities and environmental standards
Rex is the brand which denotes stylistic excellence with products inspired by precious natural materials (wood marble and stone) coordinated floor and wall coverings in which the surfaces interact to generate a new language in home design
Cerim is the brand that focuses primarily on color and on decoration Coverings designed on an integral basis to make the most of all parts of the home and offer solutions that adapt to the most diverse interior design contexts
Casa dolce casa and Casamood is the brand intended for high-end architecture and interior design and offers attractively blended colours and surfaces drawn from nature for the creation of warm interiors A range of matching colours and surfaces that combines porcelain stoneware with other types of materials Architectural design effects are blended with the language of interior decoration to create new types of relationships
CEDIT - Ceramiche drsquoItalia embodies the dialogue between art craftsmanship and technology The brand that shapes ceramic matter in the service of creativity allowing leading names of our time to express themselves to their full potential Large designer slabs that renew the concept of architectural space
FLORIM stone is the brand that combines performance and practicality with the utmost personalization of spaces Large porcelain stoneware slabs at the service of interior design professionals delivering creative flexibility with outstanding technical performances and appearance values
Florim USA is the brand of the American subsidiary its porcelain stoneware tiles for residential and commercial use manufactured in the plant at Clarksville (Tennessee) are tailored to suit the tastes of the largest possible segment of the North American market
FLORIM USASite production plant and logistics hubClarksville TN (USA)
Flagship StoreNew York NY (USA)
Logistics hubParanagrave (BRAZIL)
OceSingapore (SINGAPORE)
Flagship StoreMoscow (RUSSIA)
Site production plant and logistics hubFiorano Modenese (Modena ITALY)Production plantMordano (Bologna ITALY)
- Flagship Store- Spazio CEDITMilan (ITALY)
2016 Sustainability Report10
Our Design ServiceAs well as the product itself Florim offers a unique level of technical support throughout the various design phases From the feasibility study to the final installation Florim Solutions works side by side with the architect providing skills and experience whenever the style and performance of porcelain tiles become fundamental to the project In the age of speed and the digital revolution the company has also created an integrated web platform to give its professional partners unbeatable service Exclusive events visibility for projects free training meetings and specific competitions are just some of the services offered by Florim4Architectscom
Expo Azerbajan Pavilion winner of the Florim4Architects ldquoProject of the Yearrdquo competition
2016 Sustainability Report 11
Our 2016In this section we focus on the latest news from the Group covering a wide variety of aspects but all confirming the importance of Florims large slabs and once again underlining the centrality of innovation for the companys business
New brands
In April Florim chose the Salone Internazionale del Mobile a major event for the global design community for the relaunch of the CEDIT - Ceramiche drsquoItalia brand The brand which has always had links with leading artists designers and architects has achieved a superlative creative standard over more than fifty years of experimentation with materials and stylistic research in ceramic design CEDIT is returning to the forefront of Italian manufacturing in partnership with some of contemporary Italys top creative names Its new identity is a fine blend of Craftsmanship and Innovation expressed on the large slabs produced by Florim technology December saw the official opening - in the heart of Milan - of the first Spazio CEDIT the tangible expression of an innovative display concept created to convey the brands philosophy to the world
The brand created to explore new application solutions reaching beyond the conventional construction concept is called FLORIM stone Launched at Cersaie - the biggest ceramics industry show - this brand combines the outstanding performances of porcelain stoneware with the utmost personalisation of spaces The dimensional and functional plus factors of latest-generation large slabs allow stoneware to be used in a versatile customized way not just as a wall and floor covering but also for tops and furnishings (tables kitchen worktops and bathroom counters doors and fireplaces are just some of the possible applications)
New look
A busy year partly due to the refurbishment of the Fiorano Modenese headquarters As well as the new gatehouse the faccedilade of the office building was also restyled bringing it up to date with an all-white lookAn innovative modification at the technological state of the art was made to the raw material shed with a ventilated faccedilade of almost 1900 msup2 of Magnum Oversize large slabs The installation reproduces the ldquoArcheologierdquo collection (designed by artist Franco Guerzoni for CEDIT) and the lake of Vernago in Italys Alto Adige region (photo by Vanni Borghi) A latest-generation project leading the way in technology safety and maintenanceLast but not least a new barrier was also designed and constructed to separate the Florim property from the SFrancesco road It took 3 months to erect a boundary fence of about 340 meters of double-sided porcelain stoneware slabs 180 cm high and 265 cm wide supported by a steel frame With a total of 1122 slabs the fence was designed to withstand weather earthquakes and the forces generated by traffic passing at high speeds Installed at different angles the slabs create attractive effects with light and shade demonstrating the importance of sophisticated aesthetics to the companys identity
New Awards
Florims large slabs are the featured products in the various awards received and have been assigned one of the most important accolades in the design world with an Honourable Mention at the XXIV edition of the ADI Compasso drsquoOro awards
Just a few months after its launch the CEDIT brand also received major awards at the global level the NYCxDESIGN Award in New York the Hospitality Design Awards in New York ldquo100 Best of 2016rdquo at the Archiproducts Design Awards 2016 and the Best of the Best (April 2017) in the Design Product category at the coveted German Red Dot Design Award
More recognition came from the Emilia-Romagna Regions 2016 awards for Corporate Social Responsibility projects run in the local community A prize in the ldquoBusiness and Educationrdquo category was assigned to the Master in Florim project which aims to give young people the skills required for sustainable development
Learn moreabout CEDIT
Learn moreabout FLORIM stone
2016 Sustainability Report12
In the age of digital transformation Florim still believes in the importance of creating opportunities for meeting and exchanging ideas and in 2016 more than 12000 people came to the Florim Gallery (a multi-purpose space of 9000 msup2 at the Fiorano headquarters) Events of social usefulness workshops community projects and business occasions our training events and hospitality staff were busy on many different fronts It was also a major year for off-site events The Florim Flagship Store in Milan and the just-opened New York Flagship Store hosted more than 3200 people at events for architects and designers supported with important partnerships with POLIdesign and leading publishersFlorim also chose the world-famous Peggy Guggenheim Collection in Venice as the location for two exclusive events to highlight the partnership agreement signed with Guggenheim Intrapresaelig A dinner in the wonderful setting of the museums panoramic terrace followed speeches by distinguished guests Ettore Mocchetti Martino Gamper Domitilla Dardi Giorgia Zanellato Daniele Bortotto Franco Guerzoni and Benedetto Fasciana The final event of the year was held for the employees with a ldquoWhite Christmas Partyrdquo evening at a Florim Gallery decorated for the festive season
A year of Florim events
LrsquoArte del Design - Florim event at the Peggy Guggenheim Collection (Venice)
2016 Sustainability Report
View the Florim eventat the Guggenheim
2016 Sustainability Report 13
GOVERNANCE
Code of EthicsThe groups governance plays a central role in the responsible development of its business ensuring ethical transparent management of its operations with its stakeholders interests always in mind
After approving the Governance Model compliant with the provisions of Italian Legislative Decree 2312001 the Florim Board of Directors signed and promoted the corporate Code of Ethics (revised in June 2016) which has become an integral part of Florims business and is accepted by every new employee supplier and agentTo guarantee the application of and compliance with its contents a Supervisory Board was established to detect any breaches of its provisions All stakeholders can also contact the Supervisory Board (organismodivigilanzaflorimit) for further explanations regarding the interpretation and application of the corporate Code of Ethics as described on the corporate websiteThe following is an extract from the rules of conduct which govern the way we do business
Our mission
To manufacture ceramic tiles and materials for multiple uses and offer the most appropriate solutions for both interior design and architecture To constantly prioritise environmental sustainability attempting to satisfy the needs of customers and to create value for shareholders employees and the local community in compliance with the ethical principles and rules of conduct set out in the Code of Ethics
Our vision
To be at the cutting edge of technical and design innovation in ceramics by developing materials and production methods that position us as a constant benchmark for customers architects and competitors
Our values
Honesty and Respect all internal and external relationships must be based on honesty and respect for rules and dignity of the individual
Corporate Social Responsibility corporate social responsibility must be promoted through measures and practices adopted to support the local environment and community
Individual Responsibility everyone must be aware of the worth and consequences of their own actions
Quality and Innovation excellence must be pursued by improving products processes and skills to promote corporate success
Transparency intentions and positions must be expressed openly and clearly without misunderstandings or misrepresentation to build lasting relationships based on trust both inside and outside the company
Courage a moral strength which enables us to undertake and deal with changes difficulties and challenges to benefit from all the opportunities they offer
Feeling of Belonging feeling proud to be a part of one big team made up of the company associates customers and suppliers
Management System Policy
To achieve greater and greater transparency in its reporting the company has drawn up guidelines for its quality environment safety and energy management system Read more
2016 Sustainability Report14
Corporate BodiesFlorim Ceramiche spa is a family-run business with fully subscribed paid-up share capital consisting of 50000000 ordinary shares with a face value of 1 Euro each The capital is 100 owned by the holding company FinFloor spa with registered office in Fiorano Modenese which is in turn indirectly owned by the Lucchese family through Fin-Twin spa
The Board of Directors has 11 members
CLAUDIO LUCCHESE Chairman
DONATO BRUNI Deputy Chairman
MARIADELE LUCCHESE Director
ANNA LUCCHESE Director
FRANCESCA LUCCHESE Director
GIOVANNI LUCCHESE Director
The Board of Directors has a mandate of one year and new elections will coincide with the approval of the financial statements The Board of Statutory Auditors is composed of three members whose term of office is three years from their appointment on 1252016 until approval of the 2018 financial statements The financial statements of Florim spa and the consolidated financial statements of FinFloor spa and Fin-Twin spa are audited and certified by Deloitte spa
Corporate StructureThe changes to be noted since the previous financial statements include the incorporation of ldquoMordano 4 srlrdquo and amalgamation by acquisition of Maker srl in Florim Ceramiche spa
KRONOS 2 CERAMICHE spaShare capital euro 1646799
Fondazione Ing G LuccheseEndowment euro 60000
FABBRICA delle MATERIE srlShare capital euro 10000
EDIL FLOOR surlShare capital euro 9812681
ISABELLA srlShare capital euro 100000
FI HOLDING IncShare capital USD 50000
100
10
100
30
9667
100
1
1
99
99
100
FIN TWIN spaShare capital euro 540800
FINFLOOR spaShare capital euro 10500000
542810
FLORIM CERAMICHE spasingle shareholder companyShare capital euro 50000000
100
FLORIM BRASIL LtdaDISTRIBUICcedilAtildeO DE CERAcircMICAS Ltda
Share capital R$ 46100000
FLORIM RUSShare Capital 100000 Roubles
FLORIM USA incShare capital USD 51865541
FLORIM SOLUTION IncShare capital USD 845943
100
MORDANO 4 srlShare capital euro 100000
85
FLORIM FAR EAST PTE LtdShare capital S$ 10000
100
ERMES GIUSEPPE FERRARI Managing Director
GIOVANNI GROSSI Managing Director
OSCAR ISEPPI Managing Director
DORVAN SAZZI Managing Director
STEFANO TORRENTI Managing Director
2016 Sustainability Report 15
StakeholdersStakeholders are all individuals and groups who may influence or be influenced by a companys operations in terms of policies products and working processes shareholders employees customers and consumers suppliers local government the local community banks and trade unions
Employees and Trade Unions
Florim makes the following commitments to its employees
bull to guarantee equal opportunities fair pay and professional growth
bull to reward its human resources on the basis of transparent meritocratic criteria
bull to create safe working environments and processes
bull to guarantee transparency and clarity in contract conditions
bull to encourage dialogue and internal communications
Customers and Consumers
In dealing with its (retail) customers Florim is committed to
bull creating a relationship of trust as a stable basis for business
bull guaranteeing clarity in contracts and prices
bull guaranteeing the reliability of its products and developing customer service
bull offering innovative safe environmentally sustainable products
bull providing a diversified offering with services with high value added
The overall aim is also to satisfy the expectations and demands of the final consumer
Developers Architects and Interior Designers
To meet the needs of developers Florim is committed to
bull offering state-of-the-art solutions in terms of environmentally sustainability technology and design
bull establishing and fostering relationships with partner professionals
bull providing consulting and technical experience from the project concept through to installation
bull supplying turnkey solutions
Local Communities and Local Government
In its relationships with local communities and local institutions Florim is committed to
bull guaranteeing dialogue cooperation and transparency
bull giving value back to the local communities in the areas where it operates
bull continually improving the environmental performances of processes
bull researching developing and using the most sustainable technologies
bull making an economic contribution to local sporting and social projects for children and young people
Suppliers
When selecting its suppliers Florim pays close attention to companiesrsquo CSR practices Florims relationships with its suppliers are based on compliance with the values of its code of ethics otherwise contracts are automatically terminated Florim also guarantees certainty in payment times and compliance with contract terms provided the goods and services contracted are delivered as agreed
ERMES GIUSEPPE FERRARI Managing Director
GIOVANNI GROSSI Managing Director
OSCAR ISEPPI Managing Director
DORVAN SAZZI Managing Director
STEFANO TORRENTI Managing Director
2016 Sustainability Report16
Materiality ApproachIn 2015 the company began an internal analysis process based on the materiality principle in order to identify the sustainability issues of relevance both for the Group (including Florim USA) and for all stakeholders Materiality is the threshold above which a topic becomes sufficiently important to be included in the report In fact organizations are faced with a large number of topics on which they could report Relevant topics and indicators are those considered important for reflecting the organizations economic environmental and social impacts or which influence the decisions of its stakeholder and which therefore potentially merit inclusion in the report In accordance with the GRI ndash G4 Guidelines Florim has analyzed and identified relevant topics which were assessed by the working team which drafted the Sustainability Report on the basis of discussion with the main stakeholders The findings which emerged were supported by a qualitative survey external to the companys context examining an analysis of the press gallery (more than 650 articles) competitors Sustainability Reports the Emas Study of the Fiorano and Sassuolo Ceramics District and the GRI document ndash ldquoSustainability Topics for Sector What do Stakeholders want to knowrdquo
In the chart below the aspects found to be most important appear in the top right-hand corner and constitute a strategic priority for the Group The topics in the bottom left-hand corner such as biodiversity prevention of corruption and absence of discrimination are less relevant because they are easy for both the organization and stakeholders to manage and no problems have ever been reported over the years Similarly the protection of human rights is now taken for granted since Florim complies strictly with all the provisions of the National Employment Contract
Importance for stakeholders
Importance for Florim spa
low
m
ediu
m
high
low medium high
Biodiversity
Indirect economic impacts
Prevention of corruption
Market share
Absence of discrimination
Sustainable transport
management
Protection of Human Rights
Environment and safety
Water saving
Energy efficiencyRaw materials
Diversity and equal opportunities
Transparency of financial and other
information
Ethical supplier
management
Investments in the local community and social welfare
Direct and indirect environmental
impacts
Green products and
services
Economic performance
Quality of products offered to customers
Regulatory compliance
Development of human resources
and training
ENVIRONMENT
COMMUNITY
EMPLOYEESASSOCIATES
ECONOMIC PERFORMANCE
PRODUCT RESPONSIBILITY
HUMAN RIGHTS
2016 Sustainability Report 17
FinFloor consolidated (in thousands of Euro) 2012 2013 2014 2015 2016
Net earnings 315344 325853 329533 374094 406759
EBIDTA 59608 72986 84395 98115 107186
Operating result 35717 50996 58508 66255 71028
Gross cash flow 52710 68312 83274 97268 109148
Net profit 26103 35732 36433 43324 49347
Net financial indebtedness (127730) (96500) (54524) (27326) (12508)
Final inventory 95514 84432 90283 92795 96721
Net shareholders equity 186905 218847 276916 332721 369937
Total investments 32572 48780 41584 34215 53531
2012 2013 2014 2015 2016
Waste produced (t) 30228 21170 22300 30862 34423
Recycled third-party waste (t) 4028 4190 1721 2570 5627
Total water consumption (msup3) finished product (t) 075 075 078 069 071
Recycled water percentage 100 100 100 100 100
Self-generated energy in relation to consumption 67 68 62 65 75
Investments in environmental management (euro000) 13617 2493 1995 465 6400
2012 2013 2014 2015 2016
Number of employees at 3112 1037 992 984 982 987
Total number of training hours 14690 9124 9056 7176 10606
Number of training hours on environment and safety 7572 4514 4200 3008 2489
Number of workplace injuries 63 62 74 56 43
Environmental and social profile figures refer to Florim Italy for Florim USA please see the relevant section (from page 37)
REPORTING
In brief
Economic Profile
Environmental Profile
Social Profile
2016 Sustainability Report18
Economic Responsibility
Comments on 2016 Economic Data
The Groups 2016 results were again good from every point of view
Compared to the previous year turnover increased by 87 leading thanks to careful management of production costs to an EBITDA of Euro 1071 million equivalent to 263 of turnover and a profit after tax of Euro 493 million
The companys financial data also significantly improved with a net financial position of Euro 125 million compared to Euro 273 million at the end of 2015 in spite of record technical investments of Euro 535 million and financial investments of Euro 11 million
Once again underlying the results achieved were large investments in latest-generation machinery and technologies painstaking research to develop materials with exceptionally high technical and design content human resources and projects for the increasingly direct promotion of Florims image and quality standard
Investments
The technical investments made in 2016 amount to Euro 535 million while Euro 11 million was spent on reacquiring 100 ownership of Maker srl followed by its amalgamation with Florim spa on 31 December The most important industrial projects included the continuation of the work on the Mordano plant which involved investments of Euro 26 million for the restructuring of the raw material preparation area and the doubling of production capacity for traditional porcelain stonewareThe investments of US$ 18 million at Florim USA were utilised to complete the renewal of the raw material preparation area and construct a new building for the technical organizationFinally about 9 million Euro was invested at Fiorano on various production line modernization projects
A creative hub for design style and new trends Milan once again confirms that it is the ideal setting for Florims investments and the opening of the all-new ldquoSpazio CEDITrdquo confirms the companys determination to strengthen its bonds with design professionals working in high-end interior design The culture of beauty art architecture and design are all integral to the genetic make-up of CEDIT ndash the historic Italian brand relaunched by Florim in 2016 ndash and dominate the display areas and the first six ceramic covering collections styled by famous names on the contemporary creative sceneOn two levels with a total floor area of more than 200 msup2 the space maintains the same stylistic identity as the one at Fiorano Modenese since they are both constructed to an architectural design intended to be replicated in CEDIT customers showrooms worldwide
Spazio CEDIT Watch theinauguration video
2016 Sustainability Report 19
Economic Value Generated and Distributed
The figures for the economic value generated and distributed provide a simple clear explanation of how Florim has created wealth and redistributed it to its stakeholders The table below contains the data from Florims 2016 financial statements approved by the Board of Directors on 30 March and certified by external auditorsThe economic value directly generated is represented by the total earnings for 2016 while the economic value distributed includes the costs incurred for suppliers and employees payments to the state (taxes) and the donations which had positive repercussions for the community to which Florim spa belongs
Heading 2014 2015 2016
Revenues 253125 269855 302521
Direct economic value generated 253125 269855 302521
Operating costs 135735 150951 168809
Employee wages and benefits 56985 58149 62418
Payments to providers of capital 7413 6399 11903
Payments to government 15738 13162 15382
Community investments 221 212 240
Economic value distributed 216092 228873 258752
Economic value retained 37033 40982 43769
KeyRevenues net sales plus revenues from financial investments and sale of assetsOperating Costs payments to suppliers non-strategic investments royalties payment facilitationsEmployee wages and benefits employee wages and benefits per employees (current payments)Payments to providers of capital all payments to the organizations providers of capitalPayments to government gross taxes and dutiesCommunity investments voluntary donations and investments in the communityEconomic value retained calculated as economic value generated less economic value distributed
The data in the table are in thousands of Euro and refer to the consolidated financial statements of the Italian companies only
KBIS (USA) - detail of the stand created with ldquoI Classici di Rexrdquo
2016 Sustainability Report20
Casa dolce casa ndash Argille 20 Collection
2016 Sustainability Report 21
Environmental ResponsibilityEffective environmental policy management energy saving and emissions reduction are amongst Florims strategic sustainability objectives
Our green projects in figures
2 highly-regarded process certifications
ISO 14001 (ENVIRONMENT)and ISO 50001 (ENERGY)
849873 MWh is the amount of electricity the
company succeeded in producing in-house during 2016
2 departments (marketing and communications)
engaged on digitizing advertising tools
8462 tons of CO2 NOT emitted
CO2
100 is the percentage of wastewater recycled
16000 msup2of photovoltaic panels covering
an area of 30000 msup2
75 is the percentage of the electricity consumed which is
produced in-house
4 latest-generation industrial kilns installed in
the last 3 years
4 different types of environmental product
certification
2 cogeneration plants to increase energy saving
and efficiency
1 laboratory for the development of contemporary design projects with a specific focus on the materials green
content
100is the percentage recycling of
industrial greenware waste in the production process
2016 Sustainability Report22
Certifications
System and process certifications
UNI EN ISO 14001TUumlV has awarded Florim the highly-regarded UNI EN ISO 14001 voluntary certification which confirms its compliance with a series of internally certified procedures intended to improve the internal environmental management system The decision to seek this certification springs from the desire to reconcile quality with efficiency and productivity while protecting the environment and community in which the company operates
UNI EN ISO 50001Thanks to a careful energy management policy and aided by the latest investments in the production area also intended to improve energy efficiency Florim was the worlds first ceramics manufacturer to obtain ISO 50001 certification of its Energy Management System
In addition to its environmental certifications Florim has also been awarded prestigious AEO (Authorized Economic Operator) status
Further to a lengthy and demanding audit process by the Customs Authorities in 2016 Florim was awarded AEO certification the first company in the Province of Modena to receive this major form of approval Authorised Economic Operator status guarantees the companys absolute compliance with customs and security requirements in its foreign trade
Environmental Management
Waste 2012 2013 2014 2015 2016
Total waste produced (t) 30228 21170 22300 30862 34423
Non-dangerous recyclable waste (such as paper and cardboard fired scraps plastic glass and wood) ()
989 982 985 991 989
Non-dangerous disposed-of waste (such as the waste picked up by the motor sweepers) ()
02 04 02 02 02
Dangerous recyclable waste (such as spent oil batteries and monitors) ()
00 01 01 01 00
Dangerous disposed-of waste (such as spent lime) () 01 13 12 07 09
Third-party waste recycled within the production process (t) () 4028 4190 1721 2570 5627
Besides recycling greenware waste from its own production cycle (not included in the table because the amount cannot be calculated) Florim also recycles third party waste
Florims operations have always been oriented towards optimization of impact on the local community and environment Thanks to the work of its research laboratories the support of all staff and the recent investment plans tangible results have been achieved The data provided below reveal that in spite of an increase in production of 8 compared to the previous year consumption remains low The companys commitment to environmental protection is all-inclusive and also comprises a focus on the district within which it operates One example is the total removal of all asbestos cement from the Fiorano Modenese plant and the creation of the new recycling station opened in 2015 and donated to the Local Authority as a public serviceAs in previous years during 2016 Florim was not fined for any breaches of environmental regulations or laws
Florim recycles and optimises within the production process all greenware scraps dust residues from filters and sludge from the process and rectification wastewater treatment system The waste produced is detailed in the table the significant differences between years are due mainly to the major demolition and subsequent reconstruction works undertaken at the Italian plants
Waste Management
2016 Sustainability Report 23
Water Resources
No environmental impact of wastewater discharges is specified since all the water from the production cycle is completely reused (100) All other effluents comply with legal requirements
The figure states the total cubic meters of water used per ton of finished product The water used in the Fiorano production process is drawn from private company-owned wells with water from the public main only used for non-industrial purposes The Mordano plant is supplied by an industrial water main Water use is measured by means of meter readings Four highly innovative dry rectifying plants have gone into production at Mordano since 2015 enabling the company to eliminate the physicalchemical treatment of the water used in the rectification process
WATER USE
2012
08
2013
08
2014
08
2015
07Total water consumption (msup3) finished product (t)
07
2016
All packaging used for Florim materials is made from recycled paper and parts of the coverings used to protect pallets of finished products consist of recycled plastic Whats more all the packaging used (boxes cardboard shrink wraps pallets etc) can be completely recycled by the end user The latest investments made include new eco-friendly packaging machines increasing the number of these machines installed to 15 These plants completely eliminate waste due to leftover inventory saving significant amounts of cardboard
Packaging and Coverings
As the materiality assessment states Florim has no significant impacts on the biodiversity of its local area since the company is located inside the Fiorano Modenese ceramics manufacturing district at least 5 Km from the nearest nature reserve at Salse di Nirano Florim takes special care over the choice of the raw materials used for its tile body mixes of which it is required to provide documentation guaranteeing compliance with the European Directives protecting wild birds (EU Dir 79409EEC) and habitats (EU Dir 9243EEC) and the United Nations Convention on the protection of biodiversity It has also introduced a software program - used at the 3 production plants (Italy and the USA) - for the management of data on the origin of raw materials such as quarry location distance from the factory recycled content declaration technical safety and radioactive content data sheets and the expiry of the quarrying permit issued by the government
Raw Materials and Biodiversity
2016 Sustainability Report24
Energy Management
There is no disputing that large amounts of energy are required to power the production processes of ceramic tile plants with consequent direct and indirect impacts on the local area and the environmentThe main indicator used to measure plants energy performance is the mean specific total energy consumption (TEJ) measured in GJt of product transferred to stock As the table below shows this figure is obtained by adding together heat consumption (NGJ) and electricity used (EEJ)
Parameter ndash Definition Unit of measurement
2012 2013 2014 2015 2016
NGJ Mean specific natural gas consumption in relation to the unit of weight of finished product transferred to stock
GJt 557 571 576 578 598
EEJ Mean specific electricity consumption in relation to the unit of weight of product transferred to stock
GJt 111 108 111 108 107
TEJ Mean total specific energy consumption in relation to the unit of weight of product transferred to stock
GJt 668 679 686 685 705
Self-generated electricity as a proportion of consumption
67 68 62 65 75
With two cogeneration plants (for the combined in-house production of heat and electricity) and 16000 msup2 of photovoltaic panels the company certainly sets a new benchmark for the entire ceramic tile industry 2016 saw the replacement of the Fiorano turbine set (the main component of the cogeneration plant) while the one in Mordano was kept in operation 247 factors which led to a 10 increase in in-house electricity production in relation to consumption To provide a clearer idea of the scale of the achievement the amount of electricity the company generated in-house in 2016 (849873 MWh) would cover the average annual consumption of about 37000 households (With consumption per household of 229 MWh - data from the latest ISTAT survey in 2012ndash calculated on the Italian average)
Photovoltaic Plant
kWp kWh produced kg of CO2 not emitted
270021 15937250 8462680
Good Practice
The head office organizations are also optimizing paper and energy consumption In addition to issuing and distributing the energy saving handbook for its offices the company is also trying to maximize savings on the raw material used and specifically the use of paper Internally the company only purchases reams of paper which carry environmental certification and the paper used in offices is collected separately for proper disposal Externally the company distributes a system of merchandising products made mainly from recycled paper and encourages the gradual digitization of its marketing tools as well as publishing all its catalogues in digital format on its Internet sites Florim offers its distributor companies an innovative digital touch screen tool with the pdf versions of the catalogues and other tools for the final consumerIn 2016 Florim decided to adopt a new payslip distribution procedure introducing an online processing system As well as providing employees with new functions and greater operating flexibility thanks to this system the company no longer prints out the monthly payslips saving paper ink and energy The scheme initially involving all office workers has the ambitious target of also including the staff of the Fiorano and Mordano plants
The 16000 square meter photovoltaic plant received recognition from GSE (Energy Management Services) as one of the most innovative installations of its type and from its commissioning (October 2011) up to December 2016 it produced the following results
2016 Sustainability Report 25
Atmospheric Emissions
The industrial facility emits greenhouse gases basically CO2 from the following main sourcesbull combustion from the burning of fossil fuels (such as natural gas)bull processes from the minerals in the raw materials any organic matter in the clays used and any organic additives in tile body mixes
In order to comply with Directive 200387EC (ETS - Emission Trading Scheme) Florim has been reporting and certifying its CO2 emissions since 2013
CO2 emissions 2013 2014 2015 2016
CO2 emissions (t) 102728 103462 111862 132960
CO2 emissions (t) Finished product (t) 033 033 033 035
Emissions from the production cycle 2013 2014 2015 2016
Particulate material (gmsup2 finished product) 223 130 098 118
Lead (gmsup2 finished product) 000 000 000 000
Fluorine (gmsup2 finished product) 014 018 013 012
The increase in CO2 is due mainly to the large increase in the square meters produced (+ 8) and the 247 use of the cogeneration plant However it should be noted that the cogeneration plant provided a 10 increase in in-house electricity generation with lower CO2 emissions than electricity purchased from the grid produced mainly using fossil fuels (source ISPRA Fattori di emissione atmosferica di CO2 e sviluppo delle fonti rinnovabili nel settore elettrico Rapporti [Atmospheric CO2 Emission Factors and Development of Renewables in the Electricity Sector Reports] 2122015)The ratio between CO2 emissions and tons of finished product produced increased because in 2016 the sale of spray-dried material to other companies rose compared to the previous year (emissions from this phase are included in the emissions count but there is no corresponding output of finished product)
In a change from previous years the new GRI-G4 guidelines also require reporting of nitrogen oxide and sulphur oxide emissions Nitrogen oxide (NOx) emissions are within the limits permitted under the integrated environmental authorisation Sulphur oxide (SOx) emissions are not reported here since this figure is not required by the IEA
Transport
The materiality study reveals that transport is a significant factor for both stakeholders and Florim itself The company is not able to measure the impact of transportation of finished product on the local area since all shipments are ex-works However Florim which has been introducing electric vehicles to replace its oldest most obsolete unleaded petrol forklifts for years now has further optimized the handling of materials thanks to the new highly-automated logistics hub created at the via Canaletto location In 2016 about 53 of the vehicles used on the companys premises were electric with no direct greenhouse gas emissions
2016 Sustainability Report26
CEDIT ndash Creative Composition
2016 Sustainability Report 27
Workforce Composition
In 2016 the workforce included 27 people with disabilities 6 women and 21 menBearing in mind the job descriptions arising from the specific industrial sector the breakdown between men and women is in line with the industry average Male office workers and executives earn an average of 10 more than women for jobs of equal responsibility Among blue-collar workers the difference is 7 The company had a total of 29 foreign employees 24 at Fiorano and 5 at Mordano
Manager Executive Office worker
2013 2014 2015 2016 2013 2014 2015 2016 2013 2014 2015 2016
Women 2 3 3 3 3 1 1 1 137 142 133 149
Men 18 21 20 18 21 24 25 28 127 132 128 132
Total 20 24 23 21 24 25 26 29 264 274 261 281
Office ancillary Blue-collar worker Total
2013 2014 2015 2016 2013 2014 2015 2016 2013 2014 2015 2016
Women 18 16 25 19 226 219 212 196 385 381 375 368
Men 64 68 79 64 376 358 356 377 607 603 607 619
Total 82 84 104 83 602 577 568 573 992 984 982 987
Social Responsibility
Employees amp Corporate welfare
Its employees are the heart and soul of Florim they provide its character and its DNA Since 2009 when the current major economic crisis began Florim has undertaken a number of income support programs for its workforce Below we summarise some of the ongoing programmes and others run in 2016bull Ending of the Income Support Program for the Mordano plantbull Agreement with Sassuolo Hospital under which Florim employees and their family members enjoy discounts and shorter waiting times for specialist examinations and outpatient diagnostic tests performed on a private basisbull Special agreements with local health facilitiesbull Tax advice at special rates bull Special terms for banking services with financial consultants on-sitebull Discounts on the purchase of Florim products for employees homesbull Free entry to the Peggy Guggenheim Collection in Venice for employees and concessions for family membersbull Free provision of water and mineral salts in the plants during the summerbull Distribution of fuel vouchers to employees for the Christmas holidays
Summer Play Schemes and Cregraveches
In 2016 the summer play schemes for the children of employees at Fiorano and Mordano were continued for the fifth year in succession Seven different centers across the area between Modena and Bologna hosted 85 children (twice the number of the previous year) the company paid the fee for two weeks attendanceWhats more since 2013 the company has negotiated special terms with local cregraveches which now offer a number of places for employeesrsquo children at a reduced fee
2016 Sustainability Report28
Human Resources Management Policies
In July 2015 on renewal of the in-house supplement to the national employment contract the Management introduced a new phase in its relations with the Trade Unions with the aim of continuing and improving the good relationships enjoyed for decadesThe new company contract applied for all employees at the Fiorano headquarters includes more facilitations for part-time working the willingness to allow flexitime where feasible and the commitment to invest in staff training in order to generate full benefits from intellectual capital The company and the trades unions agreed on a plan to improve efficiency fundamental for maintaining the current level of competitiveness by establishing improvement in Production Efficiency and EBITDA as criteria for the payment of the new Performance Bonus The individual Attendance Score is considered together with these parameters The 2016 Performance Bonus in its first year of application was 20 higher than that paid in 2015 In addition in response to employees requests the Company increased the number of approved canteens extending the choice available and also introduced weekly laundering of work clothing for all production workersWith regard to applications for severance pay advances the Company confirms its commitment to continuing the policy implemented so far
Training
Florim believes that in-house training plays a key role in the companyrsquos development and provides a tool for stimulating and fulfilling the potential of its human resourcesMore than 10600 training hours were provided in 2016 to 847 people with an average of more than 11 hours of training per employee New projects included a 6-month on-line English language course which attracted a large number of participants and two highly structured training courses for the sales division and the communication department A retraining program for workers at the Mordano plant was also completed it comprised 4 technical courses attended by 31 people for an average of 13 hours per person Another new entry for 2016 was an innovative procedure for acquiring information about training needs using an on-line questionnaire available to all employees as well as line managers specific recommendations The Master in Florim project is discussed in depth in the specific section
Health and Safety
Florim was the first Italian ceramics manufacturer to receive BS OHSAS 18001 (Occupational Health amp Safety Assessment Series) certification from TUumlV this international standard certifies the implementation of an internal management system oriented towards occupational health and safetyThis major award confirms the companys constant commitment to the well-being of its employees Every year in addition to engineering inspections and machinery maintenance a number of hours of safety training are organised to raise awareness among workers and supervisors Specifically in 2016 2849 hours were dedicated to safety training and a significant reduction in injury rates was recordedMoreover BLSD refresher courses are continuously held for the team of Florim employees trained in first-aid operations and the use of the defibrillators available on site
2012 2013 2014 2015 2016
Number of workplace injuries 63 62 74 56 43
2016 Sustainability Report 29
The Master in Florim organized for the fourth time in 2016 is a vocational training project which aims to bridge the gap between education (high school or university) and the world of work The program which is one of the companys Social Responsibility projects sets out to help young people to get to know the company through a well structured work experience plan It offers a distinctively northern European approach with a method which alternates classroom teaching with internships in the various areas of the company Participants new university or high school graduates specialising in various subjects all below 30 years of age are therefore able to gain hands-on experience of all Florim departments from RampD to the production process and product distribution for an all-inclusive vision The MASTER courses ambitious aim is to match the individual participants talents with the companys real needs At the end of each edition the company hires all or some of the selected candidates enabling it to acquire new skills new experiences and new energy
Master 40 in figures
20 young people taking part6 months of training13 external lecturers264 hours of classroom teaching392 hours of practical training4 company visits (Ferrari Tetrapak Cremonini and Ducati)50 days of work experience on rotation involving 15 departments1 month of project work
The projects prestige is enhanced by its economic context since Florim pays the young participants for the entire period and its aim is to deal with the thorny problem of youth unemployment The Master has won approval from various faculties at major Italian universities The project was also a winner in the Emilia-Romagna Regions 2016 awards for Corporate Social Responsibility projects run in the local community A prize in the ldquoBusiness and Educationrdquo category was assigned to the Master project which aims to give young people the skills required for sustainable development
Master in Florim
2016 Sustainability Report
Watch the videoof the 4th edition
2016 Sustainability Report30
Local Community amp Culture
This chapter describes a number of programs Florim runs for the local community in the area where it originated and where it has been working for more than 50 years
Politecnico di Milano
Since the 20052006 academic year Florim has been a partner sponsor of a large number of Postgraduate Courses run by POLIDesign the Politecnico di Milano consortium which organizes its Master Degree coursesAlso in association with POLIDesign since 2012 Florims Milan showroom has hosted several design events for architects and designers of every nationality
Aziende modenesi per la RSI
ldquoAziende Modenesi per la RSIrdquo an independent open inclusive association of companies in the Modena area which believe in the principles and values of Corporate Social Responsibility was established by public deed on 30 September 2014 with Florim as a founding member Florim hosts the associations member companies every year to discuss the various topics proposed
Premio Lucchese
The Premio Lucchese presented for the twenty-ninth time in 2016 was established in memory of Giovanni Lucchese and consists of scholarships awarded to students at the ldquoAlessandro Voltardquo Technical High School in Sassuolo who graduate with full marks The award ceremony held every year at the Florim Gallery in association with Societagrave Ceramica Italiana of Bologna includes a talk given by a leading personality on a topic of current interest to an audience of eager young listeners
Intrapresaelig Collezione Guggenheim
As befits a company that combines the values of its local community and historic and artistic heritage with a flair for research and innovation Florim recently launched a partnership with the Peggy Guggenheim Collection Since its foundation Florim has always had a unique ability to incorporate the true cultural significance of its industry in its business model and by this project once again confirms its commitment to promoting art by supporting a collection of extraordinary beauty
Fondazione Ing Giovanni Lucchese
More than thirty years after the untimely death of Giovanni Lucchese ndash founder of what was then Floor Gres currently Florim ndash in 2013 his family established a Foundation in his name which since then has funded organizations and associations that support families in need in the ceramics district The Foundation also supports a variety of projects such as the summer play scheme for employees children the Premio Lucchese and the Florim HealthampTraining Center described in more detail below
The main projects undertaken in 2016 include the funding of the purchase of 10 defibrillators for the Municipality of Fiorano and the contributions made to the purchase of paediatric ambulances for the local area and to support the Parish charitable organizations and social services in the district
Watch the Premio Lucchese video
The project run jointly by Florim and Sassuolo Hospital adopts a completely new model combining industrial culture and healthcare in an original way to benefit the local people and community thanks to the coming-together of a ceramic coverings manufacturer and the public-private joint venture Ospedale di Sassuolo Spa Florim HealthampTraining is the synthesis of this idea an experimental center which promotes local training for healthcare and other staff health education and information advanced medical simulation and research
The Center
On the main Florim site and opened on 16 April 2014 the Center is 550 square meters in area and contains a modular lecture theatre able to seat over 100 people and a number of classrooms for seminars and lessons At its heart is a state-of-the-art control room crammed with technology that operates dummies capable of reproducing human functions of all kinds Advanced simulation is a major aid to maintaining the skills of emergency healthcare workers with a particular focus on pediatric and neonatal resuscitation
Health meetings
Designed as a space for community use the Center also aims to become a place where all sections of the population - workers schoolchildren parents teachers volunteers and even just members of the public - can learn about preventive health care and acquire first aid skills After the distribution to Florim employees of a questionnaire surveying their training needs and preferences a Center Scientific Committee of Sassuolo Hospital medical personnel was appointed and drew up a plan of bi-monthly ldquoHealth meetingsrdquo All meetings are led by doctors with expertise in the various topics who answer the many questions from the audience at the end of their talks Between its opening and the end of December 2016 the Center hosted 13 meetings on a variety of topics attended by about 1000 people including employees their family members and the community at large
Healthcare discounts for Florim employees
The project also includes a major welfare program for all Florim employees and their family members entitling them to discounts and shorter waiting times for specialist examinations and outpatient diagnostic tests performed on a private basis
American Heart Association
The world-famous American Heart Association (AHA) is the oldest and most respected American voluntary organization dedicated to the fight against cardiovascular diseases and strokes In 2015 the AHA via the Simaid International Training Center named the Florim HealthampTraining Center as an Authorized Training Site for basic and advanced cardiopulmonary resuscitation
Florim HealthampTraining Center
2016 Sustainability Report
Watch the Health amp Training Center video
2016 Sustainability Report32
Product Responsibility
Here we summarize the concept of Made in Florim denoting a product that encapsulates the companys core values passion innovation a constant commitment to improvement and corporate social responsibility
Florim product certifications
CE Marking guarantees the user that the materials purchased meet the requirements of the relevant regulations and that the characteristics concerned are virtually unchanged for all production lots It is a declaration of conformity which protects the consumerrsquos safety The presence of the CE Marking on packaging guarantees that Florim products comply with the relevant regulatory requirements
Ecolabel (EC Regulation 662010) is a certification granted to products which comply with ecological and performance criteria set at a European level concerning raw material extraction supplier selection manufacturing processes packaging distribution use and disposal The certified Florim collections are Architech Ecotech Reverse Walks 10 by Floor Gres and Pietra del Nord under the Rex brand
Several ceramic tile collections bearing the Florim brands have earned certification from Bureau Veritas for their pre-consumer recycled material content These articles are therefore fully eco-compatible and can meet the environmental sustainability requirements imposed by many international certifications
Florim is a member of the US Green Building Council (USGBC) the most important association which promotes the reduction of buildings negative impact on the environment To allow the effective monitoring a projects level of sustainability the USGBC has developed a certification procedure for the development of sustainable buildings which assess and certifies the sustainability of a building in its entirety Florim materials are able to help to gain LEED points in a number of areas (data available on the Florim brand websites)
Florim has achieved the prestigious Greenguard certification for all its products Issued by the American body UL Environment this certification aims to reduce indoor pollution caused by interior design systems and materials UL Environment thus aims to protect health by improving air quality and reducing peoples exposure to chemicals and other pollutants Florim has also achieved Greenguard Gold Certification which imposes even stricter limits to confirm that a given product is suitable for use even in locations such as schools and health care facilities
The EPD or Environmental Product Declaration is a document which defines the environmental impacts arising from production In 2016 Florim participated in the study - certified by the German organization IBU - performed on the ceramics industry average data which aims to raise international awareness of the excellence of the environmental standards achieved
Beyond the standardsMade in Florim products are a guarantee of safety highly innovative content and eco-friendliness The people who produce them work in a safe place and in ethically sustainable conditions Due to their nature all Florim products are guaranteed free from pollutant emissions do not accumulate electrostatic charges are frostproof and completely inert and are undamaged by contact with flames The Groups Internet sites and collection catalogues contain the technical data sheets which detail the product information (slip-resistance breaking strain abrasion resistance etc) for every collection as well as its recycled material content with the relative certificates
During the period under consideration no banned products were placed on the market and the company was not found guilty of any breaches of the law with regard to data protection or its marketing and communication activities
EU Ecolabel nr IT2104
2016 Sustainability Report 33
Quality SystemThe current ISO 9001 standards define quality as the ability to satisfy explicit or implicit needs via a product or a service A Quality System implies constant improvement of company processes in order to realise products that always satisfy the customerrsquos needs Further to the 2016 audit Florim obtained the renewal of its UNI EN ISO 90012015 certification for the design manufacture and sale of all categories of ceramic tile
Objective Indicator 2012 2013 2014 2015 2016
Continual improvement of control of the production process
Percentage of First Grade Product ()
924 943 942 952 956
Quality rate () 883 905 903 905 909
Scrap rate () 44 41 42 42 49
Productivity (sq mhour) 186 188 186 190 200
Improvements in sales performance and customer satisfaction
Innovation rate () 330 296 367 455 364
Coverage () 795 714 814 813 816
Total portfolio shippable within one month ()
911 837 888 893 897
Optimization of range and stocks
Obsolete stock () 172 126 165 120 69
Stock turnover rate () 13 15 16 15 16
Gradual elimination of disputes complaints and claims concerning service
Square meters affected by complaints ()
17 12 08 12 09
Complaints by number of order items ()
10 11 11 10 10
Gradual improvement in staff skill levels
Employee turnover () 15 23 04 04 12
KeyPercentage of first grade product percentage ratio between the square meters of first grade products and the total square meters transferred to stockQuality rate percentage ratio between the square meters of first grade product transferred to stock and the square meters leaving the pressesScrap rate percentage difference between square meters of material leaving the presses and square meters of product actually transferred to stockProductivity ratio between the square meters transferred to stock and the total hours worked in the plantInnovation rate ratio between square meters sold belonging to series designed in the last three years and total square meters sold Florim uses this indicator to assess the effectiveness of its design process in terms of salesCoverage percentage ratio between square meters available for immediate shipment and the square meters on orderTotal portfolio of orders shippable within one month percentage ratio between the square meters which can be shipped in 30 days and the square meters on orderObsolete stock percentage ratio between the square meters of substandard discontinued produce and the total square meters in stock Stock turnover rate ratio between the square meters sold and the square meters in stockSquare meters affected by complaints percentage ratio between the square meters affected by complaints and the square meters soldComplaints by number of order items percentage ratio between the number of complaints and the number of items orderedEmployee turnover percentage ratio between the number of employees leaving the company and being replaced and the workforce at the start of the year
2016 Sustainability Report34
Casamood - Neutra 60 Collection
2016 Sustainability Report 35
OUR COMMITMENTS
The promises we keptIn our last Sustainability Report we committed to achieving a large number of objectives the following are the outcomes we attained
Relaunch of the ldquoCEDIT ndash Ceramiche drsquoItaliardquo brand OBJECTIVE ACHIEVED
Launch of the FLORIM stone brand OBJECTIVE ACHIEVED
Installation of a new latest-generation kiln at the Mordano plant OBJECTIVE ACHIEVED
Transfer of the Moscow showroom to new premises SCHEDULED FOR 2017
Creation of a new gatehouse at the Mordano plantOBJECTIVE POSTPONED TO GIVE PRIORITY TO THE CONSTRUCTION OF THE NEW FACTORY
Introduction of ERP system at Florim USA OBJECTIVE ACHIEVED
Installation of a new spray dryer and raw material handling system at Florim USA
OBJECTIVE ACHIEVED
Economic Responsibility
Renewal of certification of the Florim environmental and energy management system
OBJECTIVE ACHIEVED
Award of new certifications for collections manufactured with a high recycled material content
OBJECTIVE ACHIEVED
Continuation of work to reduce environmental impacts at Mordano especially with the reduction of energy costs
OBJECTIVE ACHIEVED
Continuation of the work to remove asbestos cement roofing materials at the Mordano plant
OBJECTIVE ACHIEVED
Expansion of the system which conveys rainwater to the treatment plant OBJECTIVE ACHIEVED
Reduction of the noise emissions of the air filtering systems OBJECTIVE ACHIEVED
Increase of recycling targets through constant awareness-raising amongst all staff and optimisation of recycling facilities
OBJECTIVE ACHIEVED
Continuation of replacement of the diesel forklift trucks for use on outdoor yards with electric vehicles
OBJECTIVE ACHIEVED
Environmental Responsibility
Running of fourth edition of Master Florim course with new procedures OBJECTIVE ACHIEVED
Creation of an internal refreshment area for the Fiorano office staff OBJECTIVE ACHIEVED
Improvement of corporate welfare through the activation of new free services and discounts tailored to employees needs
OBJECTIVE ACHIEVED
Continuation of the health meetings for the local community in association with Ospedale di Sassuolo Spa
OBJECTIVE ACHIEVED
Organization of new community events at Florim Gallery OBJECTIVE ACHIEVED
Organization of Florim Family Day 2016 A PARTY WAS ORGANISED FOR EMPLOYEES
Social Responsibility
2016 Sustainability Report36
The targets we set for ourselvesWe aim to achieve the following objectives in 2017
Economic Responsibility
Construction of a new factory at Mordano to produce large slabs
Launch of the project to unite the Florim spa sales organizations
Total restyling of the corporate and brand Internet sites
Launch of the HUB project - Intranet CRM Marketing Automation
New plants at Florim USA a press two sorting lines a polishing and rectifying line
New working spaces and cloakrooms for technical staff at the American plant
Environmental Responsibility
Purchase of a new cogenerator for the Mordano plant
Introduction of a new rainwater collection system at Fiorano
Land reclamation project involving covering of the Rio Spezzano stream at Fiorano
Implementation of new software for continual monitoring of energy impacts at Fiorano
Modernisation of the compressor room to improve energy impacts at Mordano
Increase of recycling targets through constant awareness-raising amongst all staff and optimisation of recycling facilities
Continuation of replacement of the diesel forklift trucks for use on outdoor yards with electric vehicles
Social Responsibility
Improvement of corporate welfare through the activation of new free services and discounts tailored to employees needs
Continuation of the health meetings for the local community in association with Ospedale di Sassuolo Spa
Organization of new community events at Florim Gallery
Organization of a new event for Florim spa employees
New offices for hospitality and events staff at Fiorano
2016 Sustainability Report 37
FLORIM USA
Profile and Economic ResponsibilityFlorim USA with registered office at Clarksville - Tennessee - and its subsidiary Florim Solution Inc have been part of the Florim Group since 2000 The Florim USA manufacturing plant one of the largest most technologically advanced in the United States produces porcelain stoneware tiles for the residential market and undertakes commercial projects in North America During the last few years Florim USA has implemented a growth and process optimization strategy which has generated significant technological progress with more innovations planned for the future The strategy adopted will put Florim USA at the worldwide state of the art in porcelain stoneware tile manufacture
In 2016 of the 18 million USD invested 147 was allocated for installation of a latest-generation raw material handling system and a large spray-dryer with an innovative sorting system Improvements were made to other parts of the process to increase their efficiency leading to a further reduction in emissions and scrap rates Additional investments are planned during 2017 to continue this dual trend of rising production with mitigation of environmental impact
The new Florim Flagship Store in New York (152 Madison Avenue 32nd Street)
2016 Sustainability Report38
Environmental ResponsibilityFlorim USA implements the same environmental policy as Florim and is committed to achieving the following objectives
bull reduction of the energy used in the production processbull improvement of the waste management process with a focus on recovery and reusebull introduction of new more eco-efficient technologiesbull adoption of integrated management systems
Florim USA has been pursuing a strategy of careful management of its operations and environmental impact for a number of years Here we summarise the main actions taken and the results achieved in 2016
bull installation of a latest-generation spray-dryer in 2016bull installation of an innovative raw material handling system in 2016bull 100 recycling of wastewater within the processbull optimisation of the management of water bottles with elimination of about 34200 of them per annumbull reuse of almost all production scrap (+99)bull 157000 kg of cardboard recycled in 2016bull award of two different types of product certificationbull 9300 kg of plastic recycledbull recycling of 17 complete trucks of pallets
Environmental Projects and Awards
Florim USA has received Clarksville Montgomery County Green Certification (CMCGC) CMCGC is a program designed to help companies learn and implement best practices in the area of environmental stewardship to sustain the local communityrsquos resources through a series of free workshops taught by local environmental specialists Since 2014 Florim has allocated some of its Environment Managers time for the running of these workshopsFlorim USA earned this green company certification thanks to a large number of projects first and foremost the one which eliminated the use of disposable water bottles replaced with individual reusable bottles provided by the company and a series of fill-up stations About 34200 bottles are removed from the waste cycle every year
During the latest phase of its plant optimization Florim USA has implemented a thorough construction material reuse policy In the various stages of demolition of the old plants including the old storage silos the concrete debris was recovered and reused in other construction worksThis project alone generated 11500 tons of recycled aggregate as well as several hundred tonnes of metal sold to a recycling firm
Environmental management system and eco-compatible products
Florim USArsquos products help builders and designers to meet the requirements for sustainable buildings as defined by the United States Green Building Council (USGBC) through the LEED Green Building Rating System This protocol evaluates and certifies the environmental sustainability of a building as a unit from its design to its day to day management To gain LEED credits many of the Florim USA product lines contain a significant percentage of recycled material (40 or more)This feature contributes to an increase in the LEED score in the projects where these products are installed In 2014 Florim USA together with a large number of other US tile manufacturers and the Tile Council of North America drew up a type III environmental product declaration (EPD) certified under the ISO 14025 standard This ceramic tile life-cycle analysis enables Florim USA products to gain LEED points under the new LEED v4 protocol
2016 Sustainability Report 39
Water use (gallonsper million square feetof finished tiles)
208137 216246 204962 195280 194268
Energy use
2012 2013 2014 2015 2016
Cubic feet of natural gas per million square feet of finished tiles 9343383 9149721 8331170 8390503 8380000
kWh per million square feet of finished tiles 510972 491171 450594 465976 490300
Emissions
Particulate material lt 21024 tonnes per annum
SO2 (sulphur dioxide) lt 1674 tonnes per annum
VOC (volatile organic compounds) lt 1245 tonnes per annum
NOx (oxides of nitrogen) lt 1501 tonnes per annum
Environmental performance indicators ndash summary
The following are the main environmental indicators related to the impact and performance of Florim USA during 2016
Pre-consumer recycled material
Its internal material recycling processes enable the company to minimise its environmental impact since most of the material which would otherwise be sent to landfills or other waste treatment centers is reusedbull Wastewater is entirely recycled within the production process without any discharge into the municipal drainsbull The material in the collection bags from the tile body and glaze preparation areas the press and glaze application is entirely recycled within the processbull All scrap fired tiles are entirely recycled within the processbull 157000 kg of cardboard was sold to an external recycled material dealerbull 17 trucks of unusable wooden pallets were sold to a pallet regeneration companybull About 9300 kg of waste shrink-wrap plastic film was recovered and recycled
Post-consumer recycled material
About 82000 kg of glass was removed from the flow of waste destined for the local landfill and recycled within the process Florim USA has signed an agreement with the local landfill for consignment of all the glass it handles which is collected and set aside for recycling
Water use disposal and reuse
The water used during the production process is recycled continually therefore no water is discharged into the municipal drains
The 2016 emissions figures are in line with those for previous years well below the standards laid down
Water use 2012 2013 2014 2015 2016
Water use (gallons per million square feet of finished tiles) 216246 204962 195280 194268 203928
2016 Sustainability Report40
Social Responsibility
Employees
The Florim USA workforce comprises 348 staff employed at the production site the Clarksville and Nashville outlet stores and the Florim Solution offices Of the 348 employees 273 are blue-collar workers and 75 office staff 5 employees are Italians on secondment to the United States Florim USA offers a number of benefits to full time employeesbull health and dental care insurancebull Vision insurancebull life insurance for employees and optionally for family membersbull temporary and permanent disability supportbull employee pension plan
2012 2013 2014 2015 2016
Workplace injuries 50 41 22 29 27
The Employee Assistance Program (EAP) also offers support to employees and their families in the event of psychological difficulty or other problems that can have a negative impact on their quality of life Florim USA supports all the costs of the program
Equal opportunities
Florim USA provides equal opportunities in all employment practices to all qualified employees and applicants regardless of race colour religion gender national origin age disability or membership of the armed forces or any other category protected by federal state or local laws
Health and safety
FLORIM USA is committed to ensuring a safe healthy workplace for all employees It therefore replaces old and obsolete equipment with new technologically more modern machinery and updates safety plans as new information gradually becomes availableAs well as an internal supervisor Florim USA has also appointed a health and safety committee which constantly monitors the plans effectiveness and makes any changes requiredThere are currently 20 plant employees who hold CPRfirst aid qualifications They occupy a variety of positions and work different shifts within the plant and have volunteered to attend training courses sponsored by the company for the award of these qualifications
Training
In 2016 every Florim USA employee attended an average of about 25 hours of training The training provided covered the operating procedures for the new equipment the main safety plans and the procedures for use of existing equipment for new employeesAll new staff undergo specific training for their department focusing on the safety-related aspects of the department concerned as well as more generalized safety training
Some of these themes includebull safe correct use of forklift trucksbull training on work in confined spacesbull shutdownwarning procedures and safe electrical practicesbull safe lifting procedures
2016 Sustainability Report 41
Florim USA ndash (Clarksville Tennessee)
For employees wishing to continue their education Florim USA offers assistance through the Educational Assistance Program It provides aid with the cost of education and textbooks and is available for any employee wishing to study for a technical qualification a diploma or a degreeThe plant staff training and education plan also includes various training schemes at Florim Italy where employees are instructed in the use of new equipment before it is installed at the American plantThroughout 2016 Florim USA will continue to provide a free e-learning course on its website for architects engineers and contractors (AEC) to improve their knowledge of sustainable porcelain stoneware tiles
Employee welfare activities
Florim USA employee picnic - In 2016 the company once again held its annual picnic for employees offering them a wide variety of foods games activities and live shows in an event which provided an unforgettable days enjoyment Within the event participants received prizes in the form of vouchers and gifts
Employee anniversary dinner - 2016 again saw the usual dinner to honour Florim USA employees with 5 10 15 20 or more years of service A special evening event was held in the presence of the Chairman and the other managers to celebrate the loyalty and hard work these employees have contributed during their careers with the firm
2016 Sustainability Report42
Local Community
During 2016 Florim USA continued to provide its support to a number of projects in its local areaSome of the main projects include
Scholarships - As part of its work to support the local community Florim has an established scheme which awards scholarships to deserving students at the Austin Peay State University in memory of Florim Group founder Giovanni Lucchese In December 2016 a delegation of Florim representatives attended a scholarship presentation lunch at the Austin Peay State University hosted by the President of the University
Montgomery County Green Certification Program - Florim USA staff actively participate in the Montgomery County Green Certification Program which aims to help companies learn and implement best practices with regard to safeguarding the environment and environmental resources
Donations - In 2016 the company again made a large number of donationsbull book collection for the Austin Peay State University Employees made a generous donation of used books in good condition for children and young people of the APSU in the hope of further promoting the education of future generationsbull to Community Cares the national organization that promotes the acceptance and social inclusion of individuals with Downs Syndromebull to the Aspire Clarksville Foundation a 501(c)(3) charitable foundation whose mission is to continuously improve the economy and the livability (quality of life) of the community by attracting significant capital investment and expansion by businesses and corporations thereby creating better opportunities and higher paying jobs for residentsbull to the Alzheimerrsquos Association a non-profit voluntary organization dedicated to the care and support of Alzheimers Disease sufferers and research into the condition Its aim is to eliminate the disease through the advancement of research to provide and enhance care and support for all affected and to reduce the risk of dementia through the promotion of brain health
Other activities - Every year Florim USA participates in the United Way Drive initiative to support local non-profit organizations which provide economic assistance and psychological support to persons in difficulty
Florim USA provides regular support to the Salvation Army by collecting canned foods for persons in needIn 2016 the company again organised a canned food collection for Manna Cafeacute in Clarksville TN Manna Cafeacute is a local non-profit organization based in Middle Tennessee with the primary mission of meeting peoples fundamental need for food before encouraging them to permanently change their lives for the better More than 15 of the population in Montgomery County are affected by food insecurity (about 28000 people) The percentage of children affected is about 215 a third of whom are excluded by income from federal programs such as free school mealsFinally donations were made tobull American Lung Association the leading organization working to save lives by improving lung health and preventing lung disease through research and educationbull Cheer for a Cure an organization that gives money directly to afflicting families who have a loved one suffering from cancer and need assistance to alleviate the added financial stressbull Habitat for Humanity Since 1992 Habitat for Humanity in Montgomery County Tennessee has worked with 93 low-income families with more than 210 children to revitalise various parts of Clarksville-Montgomery County by building new homes
2016 Sustainability Report 43
Quality SystemFlorim USA works under a Quality System certified to UNI EN ISO 9001 standards The following are some of the figures in brief
Objective Indicator 2012 2013 2014 2015 2016
Optimisation of control of the production process
Percentage of First Grade Product ()
932 917 940 949 9510
Quality rate () 883 857 893 906 909
Scrap rate () 56 65 48 45 45
KeyPercentage of first grade product ratio between square feet of first grade material and total square feet transferred to stockQuality rate ratio between square feet of first grade material transferred to stock and square feet pressedScrap rate ratio between square feet pressed and square feet of product actually transferred to stock
Other ActivitiesFlorim USA and trade shows
In 2016 Florim USA participated at a number of shows and events including Coverings the AIA Tennessee Convention Hardscape North America Total Solutions Plus Neocon International Pool - Spa and Patio Expo These events targeted at the various categories of industry professionals such as dealers and designers gave Florim USA the opportunity to present its new range of indoor and outdoor products
Design Center
In December 2015 Florim USA opened a design center showroom in Nashville (TN) in a strategic location close to the airport and the city center With a spacious area to host individual CEU presentations and workshops this design center has the potential to be a major resource for local architects In 2016 it was also awarded the ldquoOutstanding Boothrdquo booth prize at the 33rd edition of the Annual Home Decorating and Remodeling Show The location is the ideal place for sharing ideas finding inspiration and putting professionals and architects in touch with each other
Florim Nashville Design Center
2016 Sustainability Report44
GRI International Sustainability Indicators SDGsThe information below illustrates the correspondence between the Florim (Italian companies) 2016 Sustainability Report the GRI-G4 guidelines and the icons of the Sustainable Development Goals (SDGs) definitively adopted by the United NationsA description of the SDGs is available at wwwglobalcompactnetworkorg
GRI indicators
Description Page Reference to SDGs
1 Strategy and Analysis
G4-1 Statement from the most senior decision-maker of the organization 5
2 Organization profile
G4-3 Name of the organization 2
G4-4 Primary brands products andor services 9
G4-5 Location of the organizations headquarters 9
G4-6 Number and names of the countries where the organization operates 9
G4-7 Nature of ownership and legal form 14
G4-8 Markets served 9
G4-9 Scale of the organization 8 8
G4-10 Significant changes regarding size structure or ownership 8
G4-11 Employees covered by National Collective Bargaining Agreement 27
G4-12 Describe the supply chain 16
G4-13Significant changes regarding the organizationrsquos size structure ownership or its supply chain
Reporting process
launched
G4-14 Precautionary principle 22
G4-15 List of external commitments in which the company is involved 22 32 33
G4-16 Associations or interest groups in which the company is involvedwwwflorimit gt
about us gt partnerships
3 Identified material aspects and boundaries
G4-18 Process used to define the report content 6
G4-19 Material aspects 16
G4-20 Boundaries of each material aspect 6
G4-21 Boundaries of each material aspect outside the organizationPartial reporting
(pages 6 16)
G4-22 Explanation of the effect of any restatements of information provided in previous reports 6
G4-23Significant changes from previous reporting periods in the scope boundaries or measurement methods
6
3 Stakeholder engagement
G4-24 List of stakeholders 15
G4-25 Identification of stakeholders 15
G4-26 Stakeholder engagement 6 16
G4-27 Key topics and concerns that have been raised through stakeholder engagement 16
4 Boundary of the Report
G4-28 Reporting period 6
G4-29 Date of publication 2
G4-30 Reporting cycle 6
G4-31 Contacts and addresses for additional information 46
5 GRI Content Index
G4-32 Reporting option chosen 6 7
G4-33 External assurance of ReportThe Report is not
externally assured
2016 Sustainability Report 45
GRI indicators
Description Page Reference to SDGs
6 Governance
G4-34 Governance structure 14
7 Ethics and integrity
G4-56 Values principles standards and norms of behavior 13 16
Economic performance indicators
EC1 Direct economic value generated and distributed 19 25789
EC5 Wages 27 158
EC7 Development and impact of infrastructure investments and services supported 23 24 31 257911
Environmental performance indicators
G4-EN2 Percentage of materials used that are recycled input materials 17 22 23 812
G4-EN3 Energy consumption within the organization 24 781213
G4-EN6 Reduction of energy consumption 17 24 71213
G4-EN7 Reductions in energy requirements of products and servicesPartial reporting
(page 22)71213
G4-EN8 Total water withdrawal by source 17 23 6
G4-EN10 Percentage and total volume of water recycled and reused 17 21 23 612
G4-EN11 Biodiversity 23 615
G4-EN15 Total indirect greenhouse gas emissions by weight 25 3121315
G4-EN16 Total indirect greenhouse gas emissions by weight 25 3121315
G4-EN19 Reduction of greenhouse gas emissions 8 24 1315
G4-EN21 NOx SOx and other significant air emissions 25 31215
G4-EN22 Total water discharge by quality and destination 23 6
G4-EN23 Total weight of waste by type 17 22 3612
G4-EN27 Impact mitigation of environmental impacts of products and services 23 68121315
G4-EN29 Monetary value of significant fines 22 16
G4-EN30 Significant environmental impacts of transporting products and goodsmaterialsPartial reporting
(page 25)111213
Social performance indicators
G4-LA1 Total number and rates of new employee hires and employee turnoverPartial reporting
(pages 17 27)8
G4-LA6 Workplace injury ratesPartial reporting
(page 17)38
G4-LA9 Average hours of training per year per employee 28 48
G4-LA12Composition of governance bodies and breakdown of employees according to gender age group etc
27 58
G4-LA13 Ratio of basic salary and total remuneration of women to men 27 5810
Society
G4-SO1 Operations with local community engagement 12 31 16
G4-SO3 Operations assessed for risks related to corruptionPartial reporting
(page 13)
Product responsibility
G4-PR1 Assessment of health and safety impacts for improvement 23 32
G4-PR3 Type of information about products and services required by the procedures 32 12
G4-PR5 Proceedings relating to customer satisfaction including surveys conducted to measure it 33
G4-PR6 Sale of banned or disputed products 32
G4-PR8 Number of substantiated complaints regarding breaches of privacy 32 16
2016 Sustainability Report46
Your Assessment
You are kindly requested to take a few minutes of your time to give us your assessment and any suggestions to enable us to improve future editions of our Sustainability Report
Click here to send us your feedback
To keep up to date with our business
Spazio CEDIT - interior (Milan)
wwwflorimiten
Florim Ceramiche
Florim4Architects
Florim_ceramiche
Florim Ceramiche spa
Florim Ceramiche
Florim Ceramiche
For any further information please feel free to contact our communications department comunicazioneflorimit
2016 Sustainability Report 47
Premio Lucchese - Florim Gallery (Fiorano Modenese - Modena Italy)
Intrapresaelig Guggenheim Collection - Massimo Bottura in Florim Gallery (Fiorano Modenese - Modena Italy)
Panathlon Christmas Gala - Florim Gallery (Fiorano Modenese - Modena Italy)
2016 Sustainability Report48
White Christmas Party - Florim Gallery (Fiorano Modenese - Modena Italy)
Cersaie - Mario Biondi in Florim Gallery (Fiorano Modenese - Modena Italy)
Dal buio alla luce - Social event at Florim Gallery (Fiorano Modenese - Modena Italy)
2016 Sustainability Report 49
Florim Gallery entrance (Fiorano Modenese - MO)
2016 Sustainability Report52
Florim Ceramiche spaVia Canaletto 24 - 41042 Fiorano Modenese (Modena Italy) - Tel +39 0536 840111 - wwwflorimit
2016 Sustainability Report 5
Welcome to the ninth edition of our Sustainability Report a document which is gaining wider and wider appreciation amongst those who follow the Florim Grouprsquos performance for its synthesis of the companyrsquos many activities in Corporate Social Responsibilities
During the last year we have once again shown a strong commitment to a business approach which goes beyond the achievement of economic results alone and involves social projectsintended to last over time with the secondary benefit of enhancing the image of the Florim name
I believe this document is a true confirmation that despite uncontrollable global environmental uncertainties there are multiple opportunities to keep the high-quality levels that Florim has always achieved
We have made further large investments in our factories in Italy and in the USA and we will continue to invest in the years to come We have given the same level of importance to investments in ourimage adding new showrooms to those already established in Milan to give visibility to CEDIT the brand which has been rediscovered and relaunched this year with a specific exclusive product range
The ldquoGalleryrdquo and the ldquoHealthampTrainingrdquo Center continue to be hives of activity the company continues to hold its doors wide open to young people with the ldquoMaster in Florimrdquo program and the ldquoFondazione Ing Giovanni Luccheserdquo continues to engage in important charitable work
I am very proud to state that all Florimrsquos employees in Italy and abroad are the companyrsquos greatest resource So I would like to say a well-deserved ldquothank yourdquo to all those whose constant hard work sense of belonging and mutual cooperation represent a priceless assets that consolidate over time
Enjoy the report and thank youClaudio Lucchese
Letter to stakeholders
2016 Sustainability Report6
Our Sustainability Report
Methodological Framework and Reporting Perimeter
Writing and distributing its Sustainability Report enables Florim to communicate with its stakeholders with transparency describe the results achieved and set our future goals in an approach based on engagement and continual improvement
Drawn up annually in accordance with the GRI-G4 Guidelines for Sustainability Reports (the G4 edition of the Global Reporting Initiative guidelines) the report issued for the ninth time this year aims to report on the economic environmental and social aspects of the companys operations from a point of view more oriented towards the shared value produced for its stakeholders
The reporting process with in accordance-core compliance level is co-ordinated by Florimrsquos communications department and supervised by the Finance Department with the invaluable assistance of many colleagues especially the staff of the management accounting technical human resources and administration departments The data and information it contains are obtained from the companys IT systems and databases
The Report refers to all the companies in the Florim group on the same principle as the Groups consolidated financial statements The figures provided in the reporting section refer to our Italian location while the fourth section contains a brief Sustainability Report for Florim USA As already stated this Report is intended as an aid to dialogue and therefore the language used is plain and to the point
The 2016 Sustainability Report also published in English will be distributed as follows - provision of a copy to all employees at the Italian and American sites enclosed with their pay stubs- publication of the PDF file on the corporate Intranet and the florimit website- distribution to member companies of the new ldquoAziende Modenesi per la RSIrdquo (Modena companies for social
responsibility) association- mailing to local institutions and the relevant trade union representatives- distribution to the local press and to the specialist press during exhibitions and site visits- distribution to key clients and architects- mailing to the main domestic agenciesauthoritiesassociations involved in issues related to sustainability and the
environment
Florim produciont plant (Fiorano Modenese - MO)
2016 Sustainability Report 7
CEDIT - Storie Collection | Giorgia Zanellato amp Daniele BortottoNamed as Best of the Best at the 2017 Red Dot Design Award
2016 Sustainability Report8
Giovanni Lucchese pioneers the production of extruded clinker tiles and Floor Gres is founded in the heart of the Sassuolo production district
Floor Gres is the first Italian manufacturer to produce single-fired white body tiles
The Swimming Pool Division is established within Floor Gres
Floor Gres is one of the first companies in the world to start the manufacture of porcelain stoneware tiles
Claudio Lucchese son of the founder takes over the reins at Floor Gres after his fathers untimely death
Floor Gres acquires Cerim Ceramiche
Floor Gres and Cerim merge to create Florim
Florim acquires Rex Ceramiche Artistiche
The Project Division forerunner of todays Florim Solutions is created
Incorporation of Florim USA a production and distribution company destined to become a leader on the American market
Florim acquires Casa dolce casa
The Casamood brand is born
A logistics hub is opened in Brazil
The new multifunctional Florim Gallery is opened and the Florim Logistics area is completed at the Florim headquarters The Fondazione Ing Giovanni Lucchese foundation is established
The first Flagship Store is opened in Moscow
The Milan Flagship Store moves to a location in the very heart of the city A new Flagship Store opens in the center of New York
Florim relaunches the historic CEDIT - Ceramiche drsquoItalia brand (which opens its first flagship space in Milan) and FLORIM stone the Groups first brand focusing on the interior design sector
MADE IN FLORIM
Over 50 years of history
Over 1300 employees worldwide
27 million square meters produced every year
406 million Euro turnover
1424 tons of CO2 not emitted in 2015 thanks to the photovoltaic system
It takes more than figures to define a company Today passion innovation a constant commitment to improvement and corporate social responsibility are the core values of a new way of doing businessthe MADE IN FLORIM way
Our History 1962
1967
1976
1981
1984
1990
1992
1994
1995
2000
2005
2006
2011
2013
2014
2015
2016
Watch the Floriminstitutional video
2016 Sustainability Report 9
Our Locations The map shows the grouprsquos headquarters showrooms production plants and logistic hubsFlorim brand products are available from top international customers and importers
Our Brands
Floor Gres is the brand specifically for innovative architectural projects The Floor Gres product range meets all the many and varied needs of contemporary architecture in terms of design and technical capabilities and environmental standards
Rex is the brand which denotes stylistic excellence with products inspired by precious natural materials (wood marble and stone) coordinated floor and wall coverings in which the surfaces interact to generate a new language in home design
Cerim is the brand that focuses primarily on color and on decoration Coverings designed on an integral basis to make the most of all parts of the home and offer solutions that adapt to the most diverse interior design contexts
Casa dolce casa and Casamood is the brand intended for high-end architecture and interior design and offers attractively blended colours and surfaces drawn from nature for the creation of warm interiors A range of matching colours and surfaces that combines porcelain stoneware with other types of materials Architectural design effects are blended with the language of interior decoration to create new types of relationships
CEDIT - Ceramiche drsquoItalia embodies the dialogue between art craftsmanship and technology The brand that shapes ceramic matter in the service of creativity allowing leading names of our time to express themselves to their full potential Large designer slabs that renew the concept of architectural space
FLORIM stone is the brand that combines performance and practicality with the utmost personalization of spaces Large porcelain stoneware slabs at the service of interior design professionals delivering creative flexibility with outstanding technical performances and appearance values
Florim USA is the brand of the American subsidiary its porcelain stoneware tiles for residential and commercial use manufactured in the plant at Clarksville (Tennessee) are tailored to suit the tastes of the largest possible segment of the North American market
FLORIM USASite production plant and logistics hubClarksville TN (USA)
Flagship StoreNew York NY (USA)
Logistics hubParanagrave (BRAZIL)
OceSingapore (SINGAPORE)
Flagship StoreMoscow (RUSSIA)
Site production plant and logistics hubFiorano Modenese (Modena ITALY)Production plantMordano (Bologna ITALY)
- Flagship Store- Spazio CEDITMilan (ITALY)
2016 Sustainability Report10
Our Design ServiceAs well as the product itself Florim offers a unique level of technical support throughout the various design phases From the feasibility study to the final installation Florim Solutions works side by side with the architect providing skills and experience whenever the style and performance of porcelain tiles become fundamental to the project In the age of speed and the digital revolution the company has also created an integrated web platform to give its professional partners unbeatable service Exclusive events visibility for projects free training meetings and specific competitions are just some of the services offered by Florim4Architectscom
Expo Azerbajan Pavilion winner of the Florim4Architects ldquoProject of the Yearrdquo competition
2016 Sustainability Report 11
Our 2016In this section we focus on the latest news from the Group covering a wide variety of aspects but all confirming the importance of Florims large slabs and once again underlining the centrality of innovation for the companys business
New brands
In April Florim chose the Salone Internazionale del Mobile a major event for the global design community for the relaunch of the CEDIT - Ceramiche drsquoItalia brand The brand which has always had links with leading artists designers and architects has achieved a superlative creative standard over more than fifty years of experimentation with materials and stylistic research in ceramic design CEDIT is returning to the forefront of Italian manufacturing in partnership with some of contemporary Italys top creative names Its new identity is a fine blend of Craftsmanship and Innovation expressed on the large slabs produced by Florim technology December saw the official opening - in the heart of Milan - of the first Spazio CEDIT the tangible expression of an innovative display concept created to convey the brands philosophy to the world
The brand created to explore new application solutions reaching beyond the conventional construction concept is called FLORIM stone Launched at Cersaie - the biggest ceramics industry show - this brand combines the outstanding performances of porcelain stoneware with the utmost personalisation of spaces The dimensional and functional plus factors of latest-generation large slabs allow stoneware to be used in a versatile customized way not just as a wall and floor covering but also for tops and furnishings (tables kitchen worktops and bathroom counters doors and fireplaces are just some of the possible applications)
New look
A busy year partly due to the refurbishment of the Fiorano Modenese headquarters As well as the new gatehouse the faccedilade of the office building was also restyled bringing it up to date with an all-white lookAn innovative modification at the technological state of the art was made to the raw material shed with a ventilated faccedilade of almost 1900 msup2 of Magnum Oversize large slabs The installation reproduces the ldquoArcheologierdquo collection (designed by artist Franco Guerzoni for CEDIT) and the lake of Vernago in Italys Alto Adige region (photo by Vanni Borghi) A latest-generation project leading the way in technology safety and maintenanceLast but not least a new barrier was also designed and constructed to separate the Florim property from the SFrancesco road It took 3 months to erect a boundary fence of about 340 meters of double-sided porcelain stoneware slabs 180 cm high and 265 cm wide supported by a steel frame With a total of 1122 slabs the fence was designed to withstand weather earthquakes and the forces generated by traffic passing at high speeds Installed at different angles the slabs create attractive effects with light and shade demonstrating the importance of sophisticated aesthetics to the companys identity
New Awards
Florims large slabs are the featured products in the various awards received and have been assigned one of the most important accolades in the design world with an Honourable Mention at the XXIV edition of the ADI Compasso drsquoOro awards
Just a few months after its launch the CEDIT brand also received major awards at the global level the NYCxDESIGN Award in New York the Hospitality Design Awards in New York ldquo100 Best of 2016rdquo at the Archiproducts Design Awards 2016 and the Best of the Best (April 2017) in the Design Product category at the coveted German Red Dot Design Award
More recognition came from the Emilia-Romagna Regions 2016 awards for Corporate Social Responsibility projects run in the local community A prize in the ldquoBusiness and Educationrdquo category was assigned to the Master in Florim project which aims to give young people the skills required for sustainable development
Learn moreabout CEDIT
Learn moreabout FLORIM stone
2016 Sustainability Report12
In the age of digital transformation Florim still believes in the importance of creating opportunities for meeting and exchanging ideas and in 2016 more than 12000 people came to the Florim Gallery (a multi-purpose space of 9000 msup2 at the Fiorano headquarters) Events of social usefulness workshops community projects and business occasions our training events and hospitality staff were busy on many different fronts It was also a major year for off-site events The Florim Flagship Store in Milan and the just-opened New York Flagship Store hosted more than 3200 people at events for architects and designers supported with important partnerships with POLIdesign and leading publishersFlorim also chose the world-famous Peggy Guggenheim Collection in Venice as the location for two exclusive events to highlight the partnership agreement signed with Guggenheim Intrapresaelig A dinner in the wonderful setting of the museums panoramic terrace followed speeches by distinguished guests Ettore Mocchetti Martino Gamper Domitilla Dardi Giorgia Zanellato Daniele Bortotto Franco Guerzoni and Benedetto Fasciana The final event of the year was held for the employees with a ldquoWhite Christmas Partyrdquo evening at a Florim Gallery decorated for the festive season
A year of Florim events
LrsquoArte del Design - Florim event at the Peggy Guggenheim Collection (Venice)
2016 Sustainability Report
View the Florim eventat the Guggenheim
2016 Sustainability Report 13
GOVERNANCE
Code of EthicsThe groups governance plays a central role in the responsible development of its business ensuring ethical transparent management of its operations with its stakeholders interests always in mind
After approving the Governance Model compliant with the provisions of Italian Legislative Decree 2312001 the Florim Board of Directors signed and promoted the corporate Code of Ethics (revised in June 2016) which has become an integral part of Florims business and is accepted by every new employee supplier and agentTo guarantee the application of and compliance with its contents a Supervisory Board was established to detect any breaches of its provisions All stakeholders can also contact the Supervisory Board (organismodivigilanzaflorimit) for further explanations regarding the interpretation and application of the corporate Code of Ethics as described on the corporate websiteThe following is an extract from the rules of conduct which govern the way we do business
Our mission
To manufacture ceramic tiles and materials for multiple uses and offer the most appropriate solutions for both interior design and architecture To constantly prioritise environmental sustainability attempting to satisfy the needs of customers and to create value for shareholders employees and the local community in compliance with the ethical principles and rules of conduct set out in the Code of Ethics
Our vision
To be at the cutting edge of technical and design innovation in ceramics by developing materials and production methods that position us as a constant benchmark for customers architects and competitors
Our values
Honesty and Respect all internal and external relationships must be based on honesty and respect for rules and dignity of the individual
Corporate Social Responsibility corporate social responsibility must be promoted through measures and practices adopted to support the local environment and community
Individual Responsibility everyone must be aware of the worth and consequences of their own actions
Quality and Innovation excellence must be pursued by improving products processes and skills to promote corporate success
Transparency intentions and positions must be expressed openly and clearly without misunderstandings or misrepresentation to build lasting relationships based on trust both inside and outside the company
Courage a moral strength which enables us to undertake and deal with changes difficulties and challenges to benefit from all the opportunities they offer
Feeling of Belonging feeling proud to be a part of one big team made up of the company associates customers and suppliers
Management System Policy
To achieve greater and greater transparency in its reporting the company has drawn up guidelines for its quality environment safety and energy management system Read more
2016 Sustainability Report14
Corporate BodiesFlorim Ceramiche spa is a family-run business with fully subscribed paid-up share capital consisting of 50000000 ordinary shares with a face value of 1 Euro each The capital is 100 owned by the holding company FinFloor spa with registered office in Fiorano Modenese which is in turn indirectly owned by the Lucchese family through Fin-Twin spa
The Board of Directors has 11 members
CLAUDIO LUCCHESE Chairman
DONATO BRUNI Deputy Chairman
MARIADELE LUCCHESE Director
ANNA LUCCHESE Director
FRANCESCA LUCCHESE Director
GIOVANNI LUCCHESE Director
The Board of Directors has a mandate of one year and new elections will coincide with the approval of the financial statements The Board of Statutory Auditors is composed of three members whose term of office is three years from their appointment on 1252016 until approval of the 2018 financial statements The financial statements of Florim spa and the consolidated financial statements of FinFloor spa and Fin-Twin spa are audited and certified by Deloitte spa
Corporate StructureThe changes to be noted since the previous financial statements include the incorporation of ldquoMordano 4 srlrdquo and amalgamation by acquisition of Maker srl in Florim Ceramiche spa
KRONOS 2 CERAMICHE spaShare capital euro 1646799
Fondazione Ing G LuccheseEndowment euro 60000
FABBRICA delle MATERIE srlShare capital euro 10000
EDIL FLOOR surlShare capital euro 9812681
ISABELLA srlShare capital euro 100000
FI HOLDING IncShare capital USD 50000
100
10
100
30
9667
100
1
1
99
99
100
FIN TWIN spaShare capital euro 540800
FINFLOOR spaShare capital euro 10500000
542810
FLORIM CERAMICHE spasingle shareholder companyShare capital euro 50000000
100
FLORIM BRASIL LtdaDISTRIBUICcedilAtildeO DE CERAcircMICAS Ltda
Share capital R$ 46100000
FLORIM RUSShare Capital 100000 Roubles
FLORIM USA incShare capital USD 51865541
FLORIM SOLUTION IncShare capital USD 845943
100
MORDANO 4 srlShare capital euro 100000
85
FLORIM FAR EAST PTE LtdShare capital S$ 10000
100
ERMES GIUSEPPE FERRARI Managing Director
GIOVANNI GROSSI Managing Director
OSCAR ISEPPI Managing Director
DORVAN SAZZI Managing Director
STEFANO TORRENTI Managing Director
2016 Sustainability Report 15
StakeholdersStakeholders are all individuals and groups who may influence or be influenced by a companys operations in terms of policies products and working processes shareholders employees customers and consumers suppliers local government the local community banks and trade unions
Employees and Trade Unions
Florim makes the following commitments to its employees
bull to guarantee equal opportunities fair pay and professional growth
bull to reward its human resources on the basis of transparent meritocratic criteria
bull to create safe working environments and processes
bull to guarantee transparency and clarity in contract conditions
bull to encourage dialogue and internal communications
Customers and Consumers
In dealing with its (retail) customers Florim is committed to
bull creating a relationship of trust as a stable basis for business
bull guaranteeing clarity in contracts and prices
bull guaranteeing the reliability of its products and developing customer service
bull offering innovative safe environmentally sustainable products
bull providing a diversified offering with services with high value added
The overall aim is also to satisfy the expectations and demands of the final consumer
Developers Architects and Interior Designers
To meet the needs of developers Florim is committed to
bull offering state-of-the-art solutions in terms of environmentally sustainability technology and design
bull establishing and fostering relationships with partner professionals
bull providing consulting and technical experience from the project concept through to installation
bull supplying turnkey solutions
Local Communities and Local Government
In its relationships with local communities and local institutions Florim is committed to
bull guaranteeing dialogue cooperation and transparency
bull giving value back to the local communities in the areas where it operates
bull continually improving the environmental performances of processes
bull researching developing and using the most sustainable technologies
bull making an economic contribution to local sporting and social projects for children and young people
Suppliers
When selecting its suppliers Florim pays close attention to companiesrsquo CSR practices Florims relationships with its suppliers are based on compliance with the values of its code of ethics otherwise contracts are automatically terminated Florim also guarantees certainty in payment times and compliance with contract terms provided the goods and services contracted are delivered as agreed
ERMES GIUSEPPE FERRARI Managing Director
GIOVANNI GROSSI Managing Director
OSCAR ISEPPI Managing Director
DORVAN SAZZI Managing Director
STEFANO TORRENTI Managing Director
2016 Sustainability Report16
Materiality ApproachIn 2015 the company began an internal analysis process based on the materiality principle in order to identify the sustainability issues of relevance both for the Group (including Florim USA) and for all stakeholders Materiality is the threshold above which a topic becomes sufficiently important to be included in the report In fact organizations are faced with a large number of topics on which they could report Relevant topics and indicators are those considered important for reflecting the organizations economic environmental and social impacts or which influence the decisions of its stakeholder and which therefore potentially merit inclusion in the report In accordance with the GRI ndash G4 Guidelines Florim has analyzed and identified relevant topics which were assessed by the working team which drafted the Sustainability Report on the basis of discussion with the main stakeholders The findings which emerged were supported by a qualitative survey external to the companys context examining an analysis of the press gallery (more than 650 articles) competitors Sustainability Reports the Emas Study of the Fiorano and Sassuolo Ceramics District and the GRI document ndash ldquoSustainability Topics for Sector What do Stakeholders want to knowrdquo
In the chart below the aspects found to be most important appear in the top right-hand corner and constitute a strategic priority for the Group The topics in the bottom left-hand corner such as biodiversity prevention of corruption and absence of discrimination are less relevant because they are easy for both the organization and stakeholders to manage and no problems have ever been reported over the years Similarly the protection of human rights is now taken for granted since Florim complies strictly with all the provisions of the National Employment Contract
Importance for stakeholders
Importance for Florim spa
low
m
ediu
m
high
low medium high
Biodiversity
Indirect economic impacts
Prevention of corruption
Market share
Absence of discrimination
Sustainable transport
management
Protection of Human Rights
Environment and safety
Water saving
Energy efficiencyRaw materials
Diversity and equal opportunities
Transparency of financial and other
information
Ethical supplier
management
Investments in the local community and social welfare
Direct and indirect environmental
impacts
Green products and
services
Economic performance
Quality of products offered to customers
Regulatory compliance
Development of human resources
and training
ENVIRONMENT
COMMUNITY
EMPLOYEESASSOCIATES
ECONOMIC PERFORMANCE
PRODUCT RESPONSIBILITY
HUMAN RIGHTS
2016 Sustainability Report 17
FinFloor consolidated (in thousands of Euro) 2012 2013 2014 2015 2016
Net earnings 315344 325853 329533 374094 406759
EBIDTA 59608 72986 84395 98115 107186
Operating result 35717 50996 58508 66255 71028
Gross cash flow 52710 68312 83274 97268 109148
Net profit 26103 35732 36433 43324 49347
Net financial indebtedness (127730) (96500) (54524) (27326) (12508)
Final inventory 95514 84432 90283 92795 96721
Net shareholders equity 186905 218847 276916 332721 369937
Total investments 32572 48780 41584 34215 53531
2012 2013 2014 2015 2016
Waste produced (t) 30228 21170 22300 30862 34423
Recycled third-party waste (t) 4028 4190 1721 2570 5627
Total water consumption (msup3) finished product (t) 075 075 078 069 071
Recycled water percentage 100 100 100 100 100
Self-generated energy in relation to consumption 67 68 62 65 75
Investments in environmental management (euro000) 13617 2493 1995 465 6400
2012 2013 2014 2015 2016
Number of employees at 3112 1037 992 984 982 987
Total number of training hours 14690 9124 9056 7176 10606
Number of training hours on environment and safety 7572 4514 4200 3008 2489
Number of workplace injuries 63 62 74 56 43
Environmental and social profile figures refer to Florim Italy for Florim USA please see the relevant section (from page 37)
REPORTING
In brief
Economic Profile
Environmental Profile
Social Profile
2016 Sustainability Report18
Economic Responsibility
Comments on 2016 Economic Data
The Groups 2016 results were again good from every point of view
Compared to the previous year turnover increased by 87 leading thanks to careful management of production costs to an EBITDA of Euro 1071 million equivalent to 263 of turnover and a profit after tax of Euro 493 million
The companys financial data also significantly improved with a net financial position of Euro 125 million compared to Euro 273 million at the end of 2015 in spite of record technical investments of Euro 535 million and financial investments of Euro 11 million
Once again underlying the results achieved were large investments in latest-generation machinery and technologies painstaking research to develop materials with exceptionally high technical and design content human resources and projects for the increasingly direct promotion of Florims image and quality standard
Investments
The technical investments made in 2016 amount to Euro 535 million while Euro 11 million was spent on reacquiring 100 ownership of Maker srl followed by its amalgamation with Florim spa on 31 December The most important industrial projects included the continuation of the work on the Mordano plant which involved investments of Euro 26 million for the restructuring of the raw material preparation area and the doubling of production capacity for traditional porcelain stonewareThe investments of US$ 18 million at Florim USA were utilised to complete the renewal of the raw material preparation area and construct a new building for the technical organizationFinally about 9 million Euro was invested at Fiorano on various production line modernization projects
A creative hub for design style and new trends Milan once again confirms that it is the ideal setting for Florims investments and the opening of the all-new ldquoSpazio CEDITrdquo confirms the companys determination to strengthen its bonds with design professionals working in high-end interior design The culture of beauty art architecture and design are all integral to the genetic make-up of CEDIT ndash the historic Italian brand relaunched by Florim in 2016 ndash and dominate the display areas and the first six ceramic covering collections styled by famous names on the contemporary creative sceneOn two levels with a total floor area of more than 200 msup2 the space maintains the same stylistic identity as the one at Fiorano Modenese since they are both constructed to an architectural design intended to be replicated in CEDIT customers showrooms worldwide
Spazio CEDIT Watch theinauguration video
2016 Sustainability Report 19
Economic Value Generated and Distributed
The figures for the economic value generated and distributed provide a simple clear explanation of how Florim has created wealth and redistributed it to its stakeholders The table below contains the data from Florims 2016 financial statements approved by the Board of Directors on 30 March and certified by external auditorsThe economic value directly generated is represented by the total earnings for 2016 while the economic value distributed includes the costs incurred for suppliers and employees payments to the state (taxes) and the donations which had positive repercussions for the community to which Florim spa belongs
Heading 2014 2015 2016
Revenues 253125 269855 302521
Direct economic value generated 253125 269855 302521
Operating costs 135735 150951 168809
Employee wages and benefits 56985 58149 62418
Payments to providers of capital 7413 6399 11903
Payments to government 15738 13162 15382
Community investments 221 212 240
Economic value distributed 216092 228873 258752
Economic value retained 37033 40982 43769
KeyRevenues net sales plus revenues from financial investments and sale of assetsOperating Costs payments to suppliers non-strategic investments royalties payment facilitationsEmployee wages and benefits employee wages and benefits per employees (current payments)Payments to providers of capital all payments to the organizations providers of capitalPayments to government gross taxes and dutiesCommunity investments voluntary donations and investments in the communityEconomic value retained calculated as economic value generated less economic value distributed
The data in the table are in thousands of Euro and refer to the consolidated financial statements of the Italian companies only
KBIS (USA) - detail of the stand created with ldquoI Classici di Rexrdquo
2016 Sustainability Report20
Casa dolce casa ndash Argille 20 Collection
2016 Sustainability Report 21
Environmental ResponsibilityEffective environmental policy management energy saving and emissions reduction are amongst Florims strategic sustainability objectives
Our green projects in figures
2 highly-regarded process certifications
ISO 14001 (ENVIRONMENT)and ISO 50001 (ENERGY)
849873 MWh is the amount of electricity the
company succeeded in producing in-house during 2016
2 departments (marketing and communications)
engaged on digitizing advertising tools
8462 tons of CO2 NOT emitted
CO2
100 is the percentage of wastewater recycled
16000 msup2of photovoltaic panels covering
an area of 30000 msup2
75 is the percentage of the electricity consumed which is
produced in-house
4 latest-generation industrial kilns installed in
the last 3 years
4 different types of environmental product
certification
2 cogeneration plants to increase energy saving
and efficiency
1 laboratory for the development of contemporary design projects with a specific focus on the materials green
content
100is the percentage recycling of
industrial greenware waste in the production process
2016 Sustainability Report22
Certifications
System and process certifications
UNI EN ISO 14001TUumlV has awarded Florim the highly-regarded UNI EN ISO 14001 voluntary certification which confirms its compliance with a series of internally certified procedures intended to improve the internal environmental management system The decision to seek this certification springs from the desire to reconcile quality with efficiency and productivity while protecting the environment and community in which the company operates
UNI EN ISO 50001Thanks to a careful energy management policy and aided by the latest investments in the production area also intended to improve energy efficiency Florim was the worlds first ceramics manufacturer to obtain ISO 50001 certification of its Energy Management System
In addition to its environmental certifications Florim has also been awarded prestigious AEO (Authorized Economic Operator) status
Further to a lengthy and demanding audit process by the Customs Authorities in 2016 Florim was awarded AEO certification the first company in the Province of Modena to receive this major form of approval Authorised Economic Operator status guarantees the companys absolute compliance with customs and security requirements in its foreign trade
Environmental Management
Waste 2012 2013 2014 2015 2016
Total waste produced (t) 30228 21170 22300 30862 34423
Non-dangerous recyclable waste (such as paper and cardboard fired scraps plastic glass and wood) ()
989 982 985 991 989
Non-dangerous disposed-of waste (such as the waste picked up by the motor sweepers) ()
02 04 02 02 02
Dangerous recyclable waste (such as spent oil batteries and monitors) ()
00 01 01 01 00
Dangerous disposed-of waste (such as spent lime) () 01 13 12 07 09
Third-party waste recycled within the production process (t) () 4028 4190 1721 2570 5627
Besides recycling greenware waste from its own production cycle (not included in the table because the amount cannot be calculated) Florim also recycles third party waste
Florims operations have always been oriented towards optimization of impact on the local community and environment Thanks to the work of its research laboratories the support of all staff and the recent investment plans tangible results have been achieved The data provided below reveal that in spite of an increase in production of 8 compared to the previous year consumption remains low The companys commitment to environmental protection is all-inclusive and also comprises a focus on the district within which it operates One example is the total removal of all asbestos cement from the Fiorano Modenese plant and the creation of the new recycling station opened in 2015 and donated to the Local Authority as a public serviceAs in previous years during 2016 Florim was not fined for any breaches of environmental regulations or laws
Florim recycles and optimises within the production process all greenware scraps dust residues from filters and sludge from the process and rectification wastewater treatment system The waste produced is detailed in the table the significant differences between years are due mainly to the major demolition and subsequent reconstruction works undertaken at the Italian plants
Waste Management
2016 Sustainability Report 23
Water Resources
No environmental impact of wastewater discharges is specified since all the water from the production cycle is completely reused (100) All other effluents comply with legal requirements
The figure states the total cubic meters of water used per ton of finished product The water used in the Fiorano production process is drawn from private company-owned wells with water from the public main only used for non-industrial purposes The Mordano plant is supplied by an industrial water main Water use is measured by means of meter readings Four highly innovative dry rectifying plants have gone into production at Mordano since 2015 enabling the company to eliminate the physicalchemical treatment of the water used in the rectification process
WATER USE
2012
08
2013
08
2014
08
2015
07Total water consumption (msup3) finished product (t)
07
2016
All packaging used for Florim materials is made from recycled paper and parts of the coverings used to protect pallets of finished products consist of recycled plastic Whats more all the packaging used (boxes cardboard shrink wraps pallets etc) can be completely recycled by the end user The latest investments made include new eco-friendly packaging machines increasing the number of these machines installed to 15 These plants completely eliminate waste due to leftover inventory saving significant amounts of cardboard
Packaging and Coverings
As the materiality assessment states Florim has no significant impacts on the biodiversity of its local area since the company is located inside the Fiorano Modenese ceramics manufacturing district at least 5 Km from the nearest nature reserve at Salse di Nirano Florim takes special care over the choice of the raw materials used for its tile body mixes of which it is required to provide documentation guaranteeing compliance with the European Directives protecting wild birds (EU Dir 79409EEC) and habitats (EU Dir 9243EEC) and the United Nations Convention on the protection of biodiversity It has also introduced a software program - used at the 3 production plants (Italy and the USA) - for the management of data on the origin of raw materials such as quarry location distance from the factory recycled content declaration technical safety and radioactive content data sheets and the expiry of the quarrying permit issued by the government
Raw Materials and Biodiversity
2016 Sustainability Report24
Energy Management
There is no disputing that large amounts of energy are required to power the production processes of ceramic tile plants with consequent direct and indirect impacts on the local area and the environmentThe main indicator used to measure plants energy performance is the mean specific total energy consumption (TEJ) measured in GJt of product transferred to stock As the table below shows this figure is obtained by adding together heat consumption (NGJ) and electricity used (EEJ)
Parameter ndash Definition Unit of measurement
2012 2013 2014 2015 2016
NGJ Mean specific natural gas consumption in relation to the unit of weight of finished product transferred to stock
GJt 557 571 576 578 598
EEJ Mean specific electricity consumption in relation to the unit of weight of product transferred to stock
GJt 111 108 111 108 107
TEJ Mean total specific energy consumption in relation to the unit of weight of product transferred to stock
GJt 668 679 686 685 705
Self-generated electricity as a proportion of consumption
67 68 62 65 75
With two cogeneration plants (for the combined in-house production of heat and electricity) and 16000 msup2 of photovoltaic panels the company certainly sets a new benchmark for the entire ceramic tile industry 2016 saw the replacement of the Fiorano turbine set (the main component of the cogeneration plant) while the one in Mordano was kept in operation 247 factors which led to a 10 increase in in-house electricity production in relation to consumption To provide a clearer idea of the scale of the achievement the amount of electricity the company generated in-house in 2016 (849873 MWh) would cover the average annual consumption of about 37000 households (With consumption per household of 229 MWh - data from the latest ISTAT survey in 2012ndash calculated on the Italian average)
Photovoltaic Plant
kWp kWh produced kg of CO2 not emitted
270021 15937250 8462680
Good Practice
The head office organizations are also optimizing paper and energy consumption In addition to issuing and distributing the energy saving handbook for its offices the company is also trying to maximize savings on the raw material used and specifically the use of paper Internally the company only purchases reams of paper which carry environmental certification and the paper used in offices is collected separately for proper disposal Externally the company distributes a system of merchandising products made mainly from recycled paper and encourages the gradual digitization of its marketing tools as well as publishing all its catalogues in digital format on its Internet sites Florim offers its distributor companies an innovative digital touch screen tool with the pdf versions of the catalogues and other tools for the final consumerIn 2016 Florim decided to adopt a new payslip distribution procedure introducing an online processing system As well as providing employees with new functions and greater operating flexibility thanks to this system the company no longer prints out the monthly payslips saving paper ink and energy The scheme initially involving all office workers has the ambitious target of also including the staff of the Fiorano and Mordano plants
The 16000 square meter photovoltaic plant received recognition from GSE (Energy Management Services) as one of the most innovative installations of its type and from its commissioning (October 2011) up to December 2016 it produced the following results
2016 Sustainability Report 25
Atmospheric Emissions
The industrial facility emits greenhouse gases basically CO2 from the following main sourcesbull combustion from the burning of fossil fuels (such as natural gas)bull processes from the minerals in the raw materials any organic matter in the clays used and any organic additives in tile body mixes
In order to comply with Directive 200387EC (ETS - Emission Trading Scheme) Florim has been reporting and certifying its CO2 emissions since 2013
CO2 emissions 2013 2014 2015 2016
CO2 emissions (t) 102728 103462 111862 132960
CO2 emissions (t) Finished product (t) 033 033 033 035
Emissions from the production cycle 2013 2014 2015 2016
Particulate material (gmsup2 finished product) 223 130 098 118
Lead (gmsup2 finished product) 000 000 000 000
Fluorine (gmsup2 finished product) 014 018 013 012
The increase in CO2 is due mainly to the large increase in the square meters produced (+ 8) and the 247 use of the cogeneration plant However it should be noted that the cogeneration plant provided a 10 increase in in-house electricity generation with lower CO2 emissions than electricity purchased from the grid produced mainly using fossil fuels (source ISPRA Fattori di emissione atmosferica di CO2 e sviluppo delle fonti rinnovabili nel settore elettrico Rapporti [Atmospheric CO2 Emission Factors and Development of Renewables in the Electricity Sector Reports] 2122015)The ratio between CO2 emissions and tons of finished product produced increased because in 2016 the sale of spray-dried material to other companies rose compared to the previous year (emissions from this phase are included in the emissions count but there is no corresponding output of finished product)
In a change from previous years the new GRI-G4 guidelines also require reporting of nitrogen oxide and sulphur oxide emissions Nitrogen oxide (NOx) emissions are within the limits permitted under the integrated environmental authorisation Sulphur oxide (SOx) emissions are not reported here since this figure is not required by the IEA
Transport
The materiality study reveals that transport is a significant factor for both stakeholders and Florim itself The company is not able to measure the impact of transportation of finished product on the local area since all shipments are ex-works However Florim which has been introducing electric vehicles to replace its oldest most obsolete unleaded petrol forklifts for years now has further optimized the handling of materials thanks to the new highly-automated logistics hub created at the via Canaletto location In 2016 about 53 of the vehicles used on the companys premises were electric with no direct greenhouse gas emissions
2016 Sustainability Report26
CEDIT ndash Creative Composition
2016 Sustainability Report 27
Workforce Composition
In 2016 the workforce included 27 people with disabilities 6 women and 21 menBearing in mind the job descriptions arising from the specific industrial sector the breakdown between men and women is in line with the industry average Male office workers and executives earn an average of 10 more than women for jobs of equal responsibility Among blue-collar workers the difference is 7 The company had a total of 29 foreign employees 24 at Fiorano and 5 at Mordano
Manager Executive Office worker
2013 2014 2015 2016 2013 2014 2015 2016 2013 2014 2015 2016
Women 2 3 3 3 3 1 1 1 137 142 133 149
Men 18 21 20 18 21 24 25 28 127 132 128 132
Total 20 24 23 21 24 25 26 29 264 274 261 281
Office ancillary Blue-collar worker Total
2013 2014 2015 2016 2013 2014 2015 2016 2013 2014 2015 2016
Women 18 16 25 19 226 219 212 196 385 381 375 368
Men 64 68 79 64 376 358 356 377 607 603 607 619
Total 82 84 104 83 602 577 568 573 992 984 982 987
Social Responsibility
Employees amp Corporate welfare
Its employees are the heart and soul of Florim they provide its character and its DNA Since 2009 when the current major economic crisis began Florim has undertaken a number of income support programs for its workforce Below we summarise some of the ongoing programmes and others run in 2016bull Ending of the Income Support Program for the Mordano plantbull Agreement with Sassuolo Hospital under which Florim employees and their family members enjoy discounts and shorter waiting times for specialist examinations and outpatient diagnostic tests performed on a private basisbull Special agreements with local health facilitiesbull Tax advice at special rates bull Special terms for banking services with financial consultants on-sitebull Discounts on the purchase of Florim products for employees homesbull Free entry to the Peggy Guggenheim Collection in Venice for employees and concessions for family membersbull Free provision of water and mineral salts in the plants during the summerbull Distribution of fuel vouchers to employees for the Christmas holidays
Summer Play Schemes and Cregraveches
In 2016 the summer play schemes for the children of employees at Fiorano and Mordano were continued for the fifth year in succession Seven different centers across the area between Modena and Bologna hosted 85 children (twice the number of the previous year) the company paid the fee for two weeks attendanceWhats more since 2013 the company has negotiated special terms with local cregraveches which now offer a number of places for employeesrsquo children at a reduced fee
2016 Sustainability Report28
Human Resources Management Policies
In July 2015 on renewal of the in-house supplement to the national employment contract the Management introduced a new phase in its relations with the Trade Unions with the aim of continuing and improving the good relationships enjoyed for decadesThe new company contract applied for all employees at the Fiorano headquarters includes more facilitations for part-time working the willingness to allow flexitime where feasible and the commitment to invest in staff training in order to generate full benefits from intellectual capital The company and the trades unions agreed on a plan to improve efficiency fundamental for maintaining the current level of competitiveness by establishing improvement in Production Efficiency and EBITDA as criteria for the payment of the new Performance Bonus The individual Attendance Score is considered together with these parameters The 2016 Performance Bonus in its first year of application was 20 higher than that paid in 2015 In addition in response to employees requests the Company increased the number of approved canteens extending the choice available and also introduced weekly laundering of work clothing for all production workersWith regard to applications for severance pay advances the Company confirms its commitment to continuing the policy implemented so far
Training
Florim believes that in-house training plays a key role in the companyrsquos development and provides a tool for stimulating and fulfilling the potential of its human resourcesMore than 10600 training hours were provided in 2016 to 847 people with an average of more than 11 hours of training per employee New projects included a 6-month on-line English language course which attracted a large number of participants and two highly structured training courses for the sales division and the communication department A retraining program for workers at the Mordano plant was also completed it comprised 4 technical courses attended by 31 people for an average of 13 hours per person Another new entry for 2016 was an innovative procedure for acquiring information about training needs using an on-line questionnaire available to all employees as well as line managers specific recommendations The Master in Florim project is discussed in depth in the specific section
Health and Safety
Florim was the first Italian ceramics manufacturer to receive BS OHSAS 18001 (Occupational Health amp Safety Assessment Series) certification from TUumlV this international standard certifies the implementation of an internal management system oriented towards occupational health and safetyThis major award confirms the companys constant commitment to the well-being of its employees Every year in addition to engineering inspections and machinery maintenance a number of hours of safety training are organised to raise awareness among workers and supervisors Specifically in 2016 2849 hours were dedicated to safety training and a significant reduction in injury rates was recordedMoreover BLSD refresher courses are continuously held for the team of Florim employees trained in first-aid operations and the use of the defibrillators available on site
2012 2013 2014 2015 2016
Number of workplace injuries 63 62 74 56 43
2016 Sustainability Report 29
The Master in Florim organized for the fourth time in 2016 is a vocational training project which aims to bridge the gap between education (high school or university) and the world of work The program which is one of the companys Social Responsibility projects sets out to help young people to get to know the company through a well structured work experience plan It offers a distinctively northern European approach with a method which alternates classroom teaching with internships in the various areas of the company Participants new university or high school graduates specialising in various subjects all below 30 years of age are therefore able to gain hands-on experience of all Florim departments from RampD to the production process and product distribution for an all-inclusive vision The MASTER courses ambitious aim is to match the individual participants talents with the companys real needs At the end of each edition the company hires all or some of the selected candidates enabling it to acquire new skills new experiences and new energy
Master 40 in figures
20 young people taking part6 months of training13 external lecturers264 hours of classroom teaching392 hours of practical training4 company visits (Ferrari Tetrapak Cremonini and Ducati)50 days of work experience on rotation involving 15 departments1 month of project work
The projects prestige is enhanced by its economic context since Florim pays the young participants for the entire period and its aim is to deal with the thorny problem of youth unemployment The Master has won approval from various faculties at major Italian universities The project was also a winner in the Emilia-Romagna Regions 2016 awards for Corporate Social Responsibility projects run in the local community A prize in the ldquoBusiness and Educationrdquo category was assigned to the Master project which aims to give young people the skills required for sustainable development
Master in Florim
2016 Sustainability Report
Watch the videoof the 4th edition
2016 Sustainability Report30
Local Community amp Culture
This chapter describes a number of programs Florim runs for the local community in the area where it originated and where it has been working for more than 50 years
Politecnico di Milano
Since the 20052006 academic year Florim has been a partner sponsor of a large number of Postgraduate Courses run by POLIDesign the Politecnico di Milano consortium which organizes its Master Degree coursesAlso in association with POLIDesign since 2012 Florims Milan showroom has hosted several design events for architects and designers of every nationality
Aziende modenesi per la RSI
ldquoAziende Modenesi per la RSIrdquo an independent open inclusive association of companies in the Modena area which believe in the principles and values of Corporate Social Responsibility was established by public deed on 30 September 2014 with Florim as a founding member Florim hosts the associations member companies every year to discuss the various topics proposed
Premio Lucchese
The Premio Lucchese presented for the twenty-ninth time in 2016 was established in memory of Giovanni Lucchese and consists of scholarships awarded to students at the ldquoAlessandro Voltardquo Technical High School in Sassuolo who graduate with full marks The award ceremony held every year at the Florim Gallery in association with Societagrave Ceramica Italiana of Bologna includes a talk given by a leading personality on a topic of current interest to an audience of eager young listeners
Intrapresaelig Collezione Guggenheim
As befits a company that combines the values of its local community and historic and artistic heritage with a flair for research and innovation Florim recently launched a partnership with the Peggy Guggenheim Collection Since its foundation Florim has always had a unique ability to incorporate the true cultural significance of its industry in its business model and by this project once again confirms its commitment to promoting art by supporting a collection of extraordinary beauty
Fondazione Ing Giovanni Lucchese
More than thirty years after the untimely death of Giovanni Lucchese ndash founder of what was then Floor Gres currently Florim ndash in 2013 his family established a Foundation in his name which since then has funded organizations and associations that support families in need in the ceramics district The Foundation also supports a variety of projects such as the summer play scheme for employees children the Premio Lucchese and the Florim HealthampTraining Center described in more detail below
The main projects undertaken in 2016 include the funding of the purchase of 10 defibrillators for the Municipality of Fiorano and the contributions made to the purchase of paediatric ambulances for the local area and to support the Parish charitable organizations and social services in the district
Watch the Premio Lucchese video
The project run jointly by Florim and Sassuolo Hospital adopts a completely new model combining industrial culture and healthcare in an original way to benefit the local people and community thanks to the coming-together of a ceramic coverings manufacturer and the public-private joint venture Ospedale di Sassuolo Spa Florim HealthampTraining is the synthesis of this idea an experimental center which promotes local training for healthcare and other staff health education and information advanced medical simulation and research
The Center
On the main Florim site and opened on 16 April 2014 the Center is 550 square meters in area and contains a modular lecture theatre able to seat over 100 people and a number of classrooms for seminars and lessons At its heart is a state-of-the-art control room crammed with technology that operates dummies capable of reproducing human functions of all kinds Advanced simulation is a major aid to maintaining the skills of emergency healthcare workers with a particular focus on pediatric and neonatal resuscitation
Health meetings
Designed as a space for community use the Center also aims to become a place where all sections of the population - workers schoolchildren parents teachers volunteers and even just members of the public - can learn about preventive health care and acquire first aid skills After the distribution to Florim employees of a questionnaire surveying their training needs and preferences a Center Scientific Committee of Sassuolo Hospital medical personnel was appointed and drew up a plan of bi-monthly ldquoHealth meetingsrdquo All meetings are led by doctors with expertise in the various topics who answer the many questions from the audience at the end of their talks Between its opening and the end of December 2016 the Center hosted 13 meetings on a variety of topics attended by about 1000 people including employees their family members and the community at large
Healthcare discounts for Florim employees
The project also includes a major welfare program for all Florim employees and their family members entitling them to discounts and shorter waiting times for specialist examinations and outpatient diagnostic tests performed on a private basis
American Heart Association
The world-famous American Heart Association (AHA) is the oldest and most respected American voluntary organization dedicated to the fight against cardiovascular diseases and strokes In 2015 the AHA via the Simaid International Training Center named the Florim HealthampTraining Center as an Authorized Training Site for basic and advanced cardiopulmonary resuscitation
Florim HealthampTraining Center
2016 Sustainability Report
Watch the Health amp Training Center video
2016 Sustainability Report32
Product Responsibility
Here we summarize the concept of Made in Florim denoting a product that encapsulates the companys core values passion innovation a constant commitment to improvement and corporate social responsibility
Florim product certifications
CE Marking guarantees the user that the materials purchased meet the requirements of the relevant regulations and that the characteristics concerned are virtually unchanged for all production lots It is a declaration of conformity which protects the consumerrsquos safety The presence of the CE Marking on packaging guarantees that Florim products comply with the relevant regulatory requirements
Ecolabel (EC Regulation 662010) is a certification granted to products which comply with ecological and performance criteria set at a European level concerning raw material extraction supplier selection manufacturing processes packaging distribution use and disposal The certified Florim collections are Architech Ecotech Reverse Walks 10 by Floor Gres and Pietra del Nord under the Rex brand
Several ceramic tile collections bearing the Florim brands have earned certification from Bureau Veritas for their pre-consumer recycled material content These articles are therefore fully eco-compatible and can meet the environmental sustainability requirements imposed by many international certifications
Florim is a member of the US Green Building Council (USGBC) the most important association which promotes the reduction of buildings negative impact on the environment To allow the effective monitoring a projects level of sustainability the USGBC has developed a certification procedure for the development of sustainable buildings which assess and certifies the sustainability of a building in its entirety Florim materials are able to help to gain LEED points in a number of areas (data available on the Florim brand websites)
Florim has achieved the prestigious Greenguard certification for all its products Issued by the American body UL Environment this certification aims to reduce indoor pollution caused by interior design systems and materials UL Environment thus aims to protect health by improving air quality and reducing peoples exposure to chemicals and other pollutants Florim has also achieved Greenguard Gold Certification which imposes even stricter limits to confirm that a given product is suitable for use even in locations such as schools and health care facilities
The EPD or Environmental Product Declaration is a document which defines the environmental impacts arising from production In 2016 Florim participated in the study - certified by the German organization IBU - performed on the ceramics industry average data which aims to raise international awareness of the excellence of the environmental standards achieved
Beyond the standardsMade in Florim products are a guarantee of safety highly innovative content and eco-friendliness The people who produce them work in a safe place and in ethically sustainable conditions Due to their nature all Florim products are guaranteed free from pollutant emissions do not accumulate electrostatic charges are frostproof and completely inert and are undamaged by contact with flames The Groups Internet sites and collection catalogues contain the technical data sheets which detail the product information (slip-resistance breaking strain abrasion resistance etc) for every collection as well as its recycled material content with the relative certificates
During the period under consideration no banned products were placed on the market and the company was not found guilty of any breaches of the law with regard to data protection or its marketing and communication activities
EU Ecolabel nr IT2104
2016 Sustainability Report 33
Quality SystemThe current ISO 9001 standards define quality as the ability to satisfy explicit or implicit needs via a product or a service A Quality System implies constant improvement of company processes in order to realise products that always satisfy the customerrsquos needs Further to the 2016 audit Florim obtained the renewal of its UNI EN ISO 90012015 certification for the design manufacture and sale of all categories of ceramic tile
Objective Indicator 2012 2013 2014 2015 2016
Continual improvement of control of the production process
Percentage of First Grade Product ()
924 943 942 952 956
Quality rate () 883 905 903 905 909
Scrap rate () 44 41 42 42 49
Productivity (sq mhour) 186 188 186 190 200
Improvements in sales performance and customer satisfaction
Innovation rate () 330 296 367 455 364
Coverage () 795 714 814 813 816
Total portfolio shippable within one month ()
911 837 888 893 897
Optimization of range and stocks
Obsolete stock () 172 126 165 120 69
Stock turnover rate () 13 15 16 15 16
Gradual elimination of disputes complaints and claims concerning service
Square meters affected by complaints ()
17 12 08 12 09
Complaints by number of order items ()
10 11 11 10 10
Gradual improvement in staff skill levels
Employee turnover () 15 23 04 04 12
KeyPercentage of first grade product percentage ratio between the square meters of first grade products and the total square meters transferred to stockQuality rate percentage ratio between the square meters of first grade product transferred to stock and the square meters leaving the pressesScrap rate percentage difference between square meters of material leaving the presses and square meters of product actually transferred to stockProductivity ratio between the square meters transferred to stock and the total hours worked in the plantInnovation rate ratio between square meters sold belonging to series designed in the last three years and total square meters sold Florim uses this indicator to assess the effectiveness of its design process in terms of salesCoverage percentage ratio between square meters available for immediate shipment and the square meters on orderTotal portfolio of orders shippable within one month percentage ratio between the square meters which can be shipped in 30 days and the square meters on orderObsolete stock percentage ratio between the square meters of substandard discontinued produce and the total square meters in stock Stock turnover rate ratio between the square meters sold and the square meters in stockSquare meters affected by complaints percentage ratio between the square meters affected by complaints and the square meters soldComplaints by number of order items percentage ratio between the number of complaints and the number of items orderedEmployee turnover percentage ratio between the number of employees leaving the company and being replaced and the workforce at the start of the year
2016 Sustainability Report34
Casamood - Neutra 60 Collection
2016 Sustainability Report 35
OUR COMMITMENTS
The promises we keptIn our last Sustainability Report we committed to achieving a large number of objectives the following are the outcomes we attained
Relaunch of the ldquoCEDIT ndash Ceramiche drsquoItaliardquo brand OBJECTIVE ACHIEVED
Launch of the FLORIM stone brand OBJECTIVE ACHIEVED
Installation of a new latest-generation kiln at the Mordano plant OBJECTIVE ACHIEVED
Transfer of the Moscow showroom to new premises SCHEDULED FOR 2017
Creation of a new gatehouse at the Mordano plantOBJECTIVE POSTPONED TO GIVE PRIORITY TO THE CONSTRUCTION OF THE NEW FACTORY
Introduction of ERP system at Florim USA OBJECTIVE ACHIEVED
Installation of a new spray dryer and raw material handling system at Florim USA
OBJECTIVE ACHIEVED
Economic Responsibility
Renewal of certification of the Florim environmental and energy management system
OBJECTIVE ACHIEVED
Award of new certifications for collections manufactured with a high recycled material content
OBJECTIVE ACHIEVED
Continuation of work to reduce environmental impacts at Mordano especially with the reduction of energy costs
OBJECTIVE ACHIEVED
Continuation of the work to remove asbestos cement roofing materials at the Mordano plant
OBJECTIVE ACHIEVED
Expansion of the system which conveys rainwater to the treatment plant OBJECTIVE ACHIEVED
Reduction of the noise emissions of the air filtering systems OBJECTIVE ACHIEVED
Increase of recycling targets through constant awareness-raising amongst all staff and optimisation of recycling facilities
OBJECTIVE ACHIEVED
Continuation of replacement of the diesel forklift trucks for use on outdoor yards with electric vehicles
OBJECTIVE ACHIEVED
Environmental Responsibility
Running of fourth edition of Master Florim course with new procedures OBJECTIVE ACHIEVED
Creation of an internal refreshment area for the Fiorano office staff OBJECTIVE ACHIEVED
Improvement of corporate welfare through the activation of new free services and discounts tailored to employees needs
OBJECTIVE ACHIEVED
Continuation of the health meetings for the local community in association with Ospedale di Sassuolo Spa
OBJECTIVE ACHIEVED
Organization of new community events at Florim Gallery OBJECTIVE ACHIEVED
Organization of Florim Family Day 2016 A PARTY WAS ORGANISED FOR EMPLOYEES
Social Responsibility
2016 Sustainability Report36
The targets we set for ourselvesWe aim to achieve the following objectives in 2017
Economic Responsibility
Construction of a new factory at Mordano to produce large slabs
Launch of the project to unite the Florim spa sales organizations
Total restyling of the corporate and brand Internet sites
Launch of the HUB project - Intranet CRM Marketing Automation
New plants at Florim USA a press two sorting lines a polishing and rectifying line
New working spaces and cloakrooms for technical staff at the American plant
Environmental Responsibility
Purchase of a new cogenerator for the Mordano plant
Introduction of a new rainwater collection system at Fiorano
Land reclamation project involving covering of the Rio Spezzano stream at Fiorano
Implementation of new software for continual monitoring of energy impacts at Fiorano
Modernisation of the compressor room to improve energy impacts at Mordano
Increase of recycling targets through constant awareness-raising amongst all staff and optimisation of recycling facilities
Continuation of replacement of the diesel forklift trucks for use on outdoor yards with electric vehicles
Social Responsibility
Improvement of corporate welfare through the activation of new free services and discounts tailored to employees needs
Continuation of the health meetings for the local community in association with Ospedale di Sassuolo Spa
Organization of new community events at Florim Gallery
Organization of a new event for Florim spa employees
New offices for hospitality and events staff at Fiorano
2016 Sustainability Report 37
FLORIM USA
Profile and Economic ResponsibilityFlorim USA with registered office at Clarksville - Tennessee - and its subsidiary Florim Solution Inc have been part of the Florim Group since 2000 The Florim USA manufacturing plant one of the largest most technologically advanced in the United States produces porcelain stoneware tiles for the residential market and undertakes commercial projects in North America During the last few years Florim USA has implemented a growth and process optimization strategy which has generated significant technological progress with more innovations planned for the future The strategy adopted will put Florim USA at the worldwide state of the art in porcelain stoneware tile manufacture
In 2016 of the 18 million USD invested 147 was allocated for installation of a latest-generation raw material handling system and a large spray-dryer with an innovative sorting system Improvements were made to other parts of the process to increase their efficiency leading to a further reduction in emissions and scrap rates Additional investments are planned during 2017 to continue this dual trend of rising production with mitigation of environmental impact
The new Florim Flagship Store in New York (152 Madison Avenue 32nd Street)
2016 Sustainability Report38
Environmental ResponsibilityFlorim USA implements the same environmental policy as Florim and is committed to achieving the following objectives
bull reduction of the energy used in the production processbull improvement of the waste management process with a focus on recovery and reusebull introduction of new more eco-efficient technologiesbull adoption of integrated management systems
Florim USA has been pursuing a strategy of careful management of its operations and environmental impact for a number of years Here we summarise the main actions taken and the results achieved in 2016
bull installation of a latest-generation spray-dryer in 2016bull installation of an innovative raw material handling system in 2016bull 100 recycling of wastewater within the processbull optimisation of the management of water bottles with elimination of about 34200 of them per annumbull reuse of almost all production scrap (+99)bull 157000 kg of cardboard recycled in 2016bull award of two different types of product certificationbull 9300 kg of plastic recycledbull recycling of 17 complete trucks of pallets
Environmental Projects and Awards
Florim USA has received Clarksville Montgomery County Green Certification (CMCGC) CMCGC is a program designed to help companies learn and implement best practices in the area of environmental stewardship to sustain the local communityrsquos resources through a series of free workshops taught by local environmental specialists Since 2014 Florim has allocated some of its Environment Managers time for the running of these workshopsFlorim USA earned this green company certification thanks to a large number of projects first and foremost the one which eliminated the use of disposable water bottles replaced with individual reusable bottles provided by the company and a series of fill-up stations About 34200 bottles are removed from the waste cycle every year
During the latest phase of its plant optimization Florim USA has implemented a thorough construction material reuse policy In the various stages of demolition of the old plants including the old storage silos the concrete debris was recovered and reused in other construction worksThis project alone generated 11500 tons of recycled aggregate as well as several hundred tonnes of metal sold to a recycling firm
Environmental management system and eco-compatible products
Florim USArsquos products help builders and designers to meet the requirements for sustainable buildings as defined by the United States Green Building Council (USGBC) through the LEED Green Building Rating System This protocol evaluates and certifies the environmental sustainability of a building as a unit from its design to its day to day management To gain LEED credits many of the Florim USA product lines contain a significant percentage of recycled material (40 or more)This feature contributes to an increase in the LEED score in the projects where these products are installed In 2014 Florim USA together with a large number of other US tile manufacturers and the Tile Council of North America drew up a type III environmental product declaration (EPD) certified under the ISO 14025 standard This ceramic tile life-cycle analysis enables Florim USA products to gain LEED points under the new LEED v4 protocol
2016 Sustainability Report 39
Water use (gallonsper million square feetof finished tiles)
208137 216246 204962 195280 194268
Energy use
2012 2013 2014 2015 2016
Cubic feet of natural gas per million square feet of finished tiles 9343383 9149721 8331170 8390503 8380000
kWh per million square feet of finished tiles 510972 491171 450594 465976 490300
Emissions
Particulate material lt 21024 tonnes per annum
SO2 (sulphur dioxide) lt 1674 tonnes per annum
VOC (volatile organic compounds) lt 1245 tonnes per annum
NOx (oxides of nitrogen) lt 1501 tonnes per annum
Environmental performance indicators ndash summary
The following are the main environmental indicators related to the impact and performance of Florim USA during 2016
Pre-consumer recycled material
Its internal material recycling processes enable the company to minimise its environmental impact since most of the material which would otherwise be sent to landfills or other waste treatment centers is reusedbull Wastewater is entirely recycled within the production process without any discharge into the municipal drainsbull The material in the collection bags from the tile body and glaze preparation areas the press and glaze application is entirely recycled within the processbull All scrap fired tiles are entirely recycled within the processbull 157000 kg of cardboard was sold to an external recycled material dealerbull 17 trucks of unusable wooden pallets were sold to a pallet regeneration companybull About 9300 kg of waste shrink-wrap plastic film was recovered and recycled
Post-consumer recycled material
About 82000 kg of glass was removed from the flow of waste destined for the local landfill and recycled within the process Florim USA has signed an agreement with the local landfill for consignment of all the glass it handles which is collected and set aside for recycling
Water use disposal and reuse
The water used during the production process is recycled continually therefore no water is discharged into the municipal drains
The 2016 emissions figures are in line with those for previous years well below the standards laid down
Water use 2012 2013 2014 2015 2016
Water use (gallons per million square feet of finished tiles) 216246 204962 195280 194268 203928
2016 Sustainability Report40
Social Responsibility
Employees
The Florim USA workforce comprises 348 staff employed at the production site the Clarksville and Nashville outlet stores and the Florim Solution offices Of the 348 employees 273 are blue-collar workers and 75 office staff 5 employees are Italians on secondment to the United States Florim USA offers a number of benefits to full time employeesbull health and dental care insurancebull Vision insurancebull life insurance for employees and optionally for family membersbull temporary and permanent disability supportbull employee pension plan
2012 2013 2014 2015 2016
Workplace injuries 50 41 22 29 27
The Employee Assistance Program (EAP) also offers support to employees and their families in the event of psychological difficulty or other problems that can have a negative impact on their quality of life Florim USA supports all the costs of the program
Equal opportunities
Florim USA provides equal opportunities in all employment practices to all qualified employees and applicants regardless of race colour religion gender national origin age disability or membership of the armed forces or any other category protected by federal state or local laws
Health and safety
FLORIM USA is committed to ensuring a safe healthy workplace for all employees It therefore replaces old and obsolete equipment with new technologically more modern machinery and updates safety plans as new information gradually becomes availableAs well as an internal supervisor Florim USA has also appointed a health and safety committee which constantly monitors the plans effectiveness and makes any changes requiredThere are currently 20 plant employees who hold CPRfirst aid qualifications They occupy a variety of positions and work different shifts within the plant and have volunteered to attend training courses sponsored by the company for the award of these qualifications
Training
In 2016 every Florim USA employee attended an average of about 25 hours of training The training provided covered the operating procedures for the new equipment the main safety plans and the procedures for use of existing equipment for new employeesAll new staff undergo specific training for their department focusing on the safety-related aspects of the department concerned as well as more generalized safety training
Some of these themes includebull safe correct use of forklift trucksbull training on work in confined spacesbull shutdownwarning procedures and safe electrical practicesbull safe lifting procedures
2016 Sustainability Report 41
Florim USA ndash (Clarksville Tennessee)
For employees wishing to continue their education Florim USA offers assistance through the Educational Assistance Program It provides aid with the cost of education and textbooks and is available for any employee wishing to study for a technical qualification a diploma or a degreeThe plant staff training and education plan also includes various training schemes at Florim Italy where employees are instructed in the use of new equipment before it is installed at the American plantThroughout 2016 Florim USA will continue to provide a free e-learning course on its website for architects engineers and contractors (AEC) to improve their knowledge of sustainable porcelain stoneware tiles
Employee welfare activities
Florim USA employee picnic - In 2016 the company once again held its annual picnic for employees offering them a wide variety of foods games activities and live shows in an event which provided an unforgettable days enjoyment Within the event participants received prizes in the form of vouchers and gifts
Employee anniversary dinner - 2016 again saw the usual dinner to honour Florim USA employees with 5 10 15 20 or more years of service A special evening event was held in the presence of the Chairman and the other managers to celebrate the loyalty and hard work these employees have contributed during their careers with the firm
2016 Sustainability Report42
Local Community
During 2016 Florim USA continued to provide its support to a number of projects in its local areaSome of the main projects include
Scholarships - As part of its work to support the local community Florim has an established scheme which awards scholarships to deserving students at the Austin Peay State University in memory of Florim Group founder Giovanni Lucchese In December 2016 a delegation of Florim representatives attended a scholarship presentation lunch at the Austin Peay State University hosted by the President of the University
Montgomery County Green Certification Program - Florim USA staff actively participate in the Montgomery County Green Certification Program which aims to help companies learn and implement best practices with regard to safeguarding the environment and environmental resources
Donations - In 2016 the company again made a large number of donationsbull book collection for the Austin Peay State University Employees made a generous donation of used books in good condition for children and young people of the APSU in the hope of further promoting the education of future generationsbull to Community Cares the national organization that promotes the acceptance and social inclusion of individuals with Downs Syndromebull to the Aspire Clarksville Foundation a 501(c)(3) charitable foundation whose mission is to continuously improve the economy and the livability (quality of life) of the community by attracting significant capital investment and expansion by businesses and corporations thereby creating better opportunities and higher paying jobs for residentsbull to the Alzheimerrsquos Association a non-profit voluntary organization dedicated to the care and support of Alzheimers Disease sufferers and research into the condition Its aim is to eliminate the disease through the advancement of research to provide and enhance care and support for all affected and to reduce the risk of dementia through the promotion of brain health
Other activities - Every year Florim USA participates in the United Way Drive initiative to support local non-profit organizations which provide economic assistance and psychological support to persons in difficulty
Florim USA provides regular support to the Salvation Army by collecting canned foods for persons in needIn 2016 the company again organised a canned food collection for Manna Cafeacute in Clarksville TN Manna Cafeacute is a local non-profit organization based in Middle Tennessee with the primary mission of meeting peoples fundamental need for food before encouraging them to permanently change their lives for the better More than 15 of the population in Montgomery County are affected by food insecurity (about 28000 people) The percentage of children affected is about 215 a third of whom are excluded by income from federal programs such as free school mealsFinally donations were made tobull American Lung Association the leading organization working to save lives by improving lung health and preventing lung disease through research and educationbull Cheer for a Cure an organization that gives money directly to afflicting families who have a loved one suffering from cancer and need assistance to alleviate the added financial stressbull Habitat for Humanity Since 1992 Habitat for Humanity in Montgomery County Tennessee has worked with 93 low-income families with more than 210 children to revitalise various parts of Clarksville-Montgomery County by building new homes
2016 Sustainability Report 43
Quality SystemFlorim USA works under a Quality System certified to UNI EN ISO 9001 standards The following are some of the figures in brief
Objective Indicator 2012 2013 2014 2015 2016
Optimisation of control of the production process
Percentage of First Grade Product ()
932 917 940 949 9510
Quality rate () 883 857 893 906 909
Scrap rate () 56 65 48 45 45
KeyPercentage of first grade product ratio between square feet of first grade material and total square feet transferred to stockQuality rate ratio between square feet of first grade material transferred to stock and square feet pressedScrap rate ratio between square feet pressed and square feet of product actually transferred to stock
Other ActivitiesFlorim USA and trade shows
In 2016 Florim USA participated at a number of shows and events including Coverings the AIA Tennessee Convention Hardscape North America Total Solutions Plus Neocon International Pool - Spa and Patio Expo These events targeted at the various categories of industry professionals such as dealers and designers gave Florim USA the opportunity to present its new range of indoor and outdoor products
Design Center
In December 2015 Florim USA opened a design center showroom in Nashville (TN) in a strategic location close to the airport and the city center With a spacious area to host individual CEU presentations and workshops this design center has the potential to be a major resource for local architects In 2016 it was also awarded the ldquoOutstanding Boothrdquo booth prize at the 33rd edition of the Annual Home Decorating and Remodeling Show The location is the ideal place for sharing ideas finding inspiration and putting professionals and architects in touch with each other
Florim Nashville Design Center
2016 Sustainability Report44
GRI International Sustainability Indicators SDGsThe information below illustrates the correspondence between the Florim (Italian companies) 2016 Sustainability Report the GRI-G4 guidelines and the icons of the Sustainable Development Goals (SDGs) definitively adopted by the United NationsA description of the SDGs is available at wwwglobalcompactnetworkorg
GRI indicators
Description Page Reference to SDGs
1 Strategy and Analysis
G4-1 Statement from the most senior decision-maker of the organization 5
2 Organization profile
G4-3 Name of the organization 2
G4-4 Primary brands products andor services 9
G4-5 Location of the organizations headquarters 9
G4-6 Number and names of the countries where the organization operates 9
G4-7 Nature of ownership and legal form 14
G4-8 Markets served 9
G4-9 Scale of the organization 8 8
G4-10 Significant changes regarding size structure or ownership 8
G4-11 Employees covered by National Collective Bargaining Agreement 27
G4-12 Describe the supply chain 16
G4-13Significant changes regarding the organizationrsquos size structure ownership or its supply chain
Reporting process
launched
G4-14 Precautionary principle 22
G4-15 List of external commitments in which the company is involved 22 32 33
G4-16 Associations or interest groups in which the company is involvedwwwflorimit gt
about us gt partnerships
3 Identified material aspects and boundaries
G4-18 Process used to define the report content 6
G4-19 Material aspects 16
G4-20 Boundaries of each material aspect 6
G4-21 Boundaries of each material aspect outside the organizationPartial reporting
(pages 6 16)
G4-22 Explanation of the effect of any restatements of information provided in previous reports 6
G4-23Significant changes from previous reporting periods in the scope boundaries or measurement methods
6
3 Stakeholder engagement
G4-24 List of stakeholders 15
G4-25 Identification of stakeholders 15
G4-26 Stakeholder engagement 6 16
G4-27 Key topics and concerns that have been raised through stakeholder engagement 16
4 Boundary of the Report
G4-28 Reporting period 6
G4-29 Date of publication 2
G4-30 Reporting cycle 6
G4-31 Contacts and addresses for additional information 46
5 GRI Content Index
G4-32 Reporting option chosen 6 7
G4-33 External assurance of ReportThe Report is not
externally assured
2016 Sustainability Report 45
GRI indicators
Description Page Reference to SDGs
6 Governance
G4-34 Governance structure 14
7 Ethics and integrity
G4-56 Values principles standards and norms of behavior 13 16
Economic performance indicators
EC1 Direct economic value generated and distributed 19 25789
EC5 Wages 27 158
EC7 Development and impact of infrastructure investments and services supported 23 24 31 257911
Environmental performance indicators
G4-EN2 Percentage of materials used that are recycled input materials 17 22 23 812
G4-EN3 Energy consumption within the organization 24 781213
G4-EN6 Reduction of energy consumption 17 24 71213
G4-EN7 Reductions in energy requirements of products and servicesPartial reporting
(page 22)71213
G4-EN8 Total water withdrawal by source 17 23 6
G4-EN10 Percentage and total volume of water recycled and reused 17 21 23 612
G4-EN11 Biodiversity 23 615
G4-EN15 Total indirect greenhouse gas emissions by weight 25 3121315
G4-EN16 Total indirect greenhouse gas emissions by weight 25 3121315
G4-EN19 Reduction of greenhouse gas emissions 8 24 1315
G4-EN21 NOx SOx and other significant air emissions 25 31215
G4-EN22 Total water discharge by quality and destination 23 6
G4-EN23 Total weight of waste by type 17 22 3612
G4-EN27 Impact mitigation of environmental impacts of products and services 23 68121315
G4-EN29 Monetary value of significant fines 22 16
G4-EN30 Significant environmental impacts of transporting products and goodsmaterialsPartial reporting
(page 25)111213
Social performance indicators
G4-LA1 Total number and rates of new employee hires and employee turnoverPartial reporting
(pages 17 27)8
G4-LA6 Workplace injury ratesPartial reporting
(page 17)38
G4-LA9 Average hours of training per year per employee 28 48
G4-LA12Composition of governance bodies and breakdown of employees according to gender age group etc
27 58
G4-LA13 Ratio of basic salary and total remuneration of women to men 27 5810
Society
G4-SO1 Operations with local community engagement 12 31 16
G4-SO3 Operations assessed for risks related to corruptionPartial reporting
(page 13)
Product responsibility
G4-PR1 Assessment of health and safety impacts for improvement 23 32
G4-PR3 Type of information about products and services required by the procedures 32 12
G4-PR5 Proceedings relating to customer satisfaction including surveys conducted to measure it 33
G4-PR6 Sale of banned or disputed products 32
G4-PR8 Number of substantiated complaints regarding breaches of privacy 32 16
2016 Sustainability Report46
Your Assessment
You are kindly requested to take a few minutes of your time to give us your assessment and any suggestions to enable us to improve future editions of our Sustainability Report
Click here to send us your feedback
To keep up to date with our business
Spazio CEDIT - interior (Milan)
wwwflorimiten
Florim Ceramiche
Florim4Architects
Florim_ceramiche
Florim Ceramiche spa
Florim Ceramiche
Florim Ceramiche
For any further information please feel free to contact our communications department comunicazioneflorimit
2016 Sustainability Report 47
Premio Lucchese - Florim Gallery (Fiorano Modenese - Modena Italy)
Intrapresaelig Guggenheim Collection - Massimo Bottura in Florim Gallery (Fiorano Modenese - Modena Italy)
Panathlon Christmas Gala - Florim Gallery (Fiorano Modenese - Modena Italy)
2016 Sustainability Report48
White Christmas Party - Florim Gallery (Fiorano Modenese - Modena Italy)
Cersaie - Mario Biondi in Florim Gallery (Fiorano Modenese - Modena Italy)
Dal buio alla luce - Social event at Florim Gallery (Fiorano Modenese - Modena Italy)
2016 Sustainability Report 49
Florim Gallery entrance (Fiorano Modenese - MO)
2016 Sustainability Report52
Florim Ceramiche spaVia Canaletto 24 - 41042 Fiorano Modenese (Modena Italy) - Tel +39 0536 840111 - wwwflorimit
2016 Sustainability Report6
Our Sustainability Report
Methodological Framework and Reporting Perimeter
Writing and distributing its Sustainability Report enables Florim to communicate with its stakeholders with transparency describe the results achieved and set our future goals in an approach based on engagement and continual improvement
Drawn up annually in accordance with the GRI-G4 Guidelines for Sustainability Reports (the G4 edition of the Global Reporting Initiative guidelines) the report issued for the ninth time this year aims to report on the economic environmental and social aspects of the companys operations from a point of view more oriented towards the shared value produced for its stakeholders
The reporting process with in accordance-core compliance level is co-ordinated by Florimrsquos communications department and supervised by the Finance Department with the invaluable assistance of many colleagues especially the staff of the management accounting technical human resources and administration departments The data and information it contains are obtained from the companys IT systems and databases
The Report refers to all the companies in the Florim group on the same principle as the Groups consolidated financial statements The figures provided in the reporting section refer to our Italian location while the fourth section contains a brief Sustainability Report for Florim USA As already stated this Report is intended as an aid to dialogue and therefore the language used is plain and to the point
The 2016 Sustainability Report also published in English will be distributed as follows - provision of a copy to all employees at the Italian and American sites enclosed with their pay stubs- publication of the PDF file on the corporate Intranet and the florimit website- distribution to member companies of the new ldquoAziende Modenesi per la RSIrdquo (Modena companies for social
responsibility) association- mailing to local institutions and the relevant trade union representatives- distribution to the local press and to the specialist press during exhibitions and site visits- distribution to key clients and architects- mailing to the main domestic agenciesauthoritiesassociations involved in issues related to sustainability and the
environment
Florim produciont plant (Fiorano Modenese - MO)
2016 Sustainability Report 7
CEDIT - Storie Collection | Giorgia Zanellato amp Daniele BortottoNamed as Best of the Best at the 2017 Red Dot Design Award
2016 Sustainability Report8
Giovanni Lucchese pioneers the production of extruded clinker tiles and Floor Gres is founded in the heart of the Sassuolo production district
Floor Gres is the first Italian manufacturer to produce single-fired white body tiles
The Swimming Pool Division is established within Floor Gres
Floor Gres is one of the first companies in the world to start the manufacture of porcelain stoneware tiles
Claudio Lucchese son of the founder takes over the reins at Floor Gres after his fathers untimely death
Floor Gres acquires Cerim Ceramiche
Floor Gres and Cerim merge to create Florim
Florim acquires Rex Ceramiche Artistiche
The Project Division forerunner of todays Florim Solutions is created
Incorporation of Florim USA a production and distribution company destined to become a leader on the American market
Florim acquires Casa dolce casa
The Casamood brand is born
A logistics hub is opened in Brazil
The new multifunctional Florim Gallery is opened and the Florim Logistics area is completed at the Florim headquarters The Fondazione Ing Giovanni Lucchese foundation is established
The first Flagship Store is opened in Moscow
The Milan Flagship Store moves to a location in the very heart of the city A new Flagship Store opens in the center of New York
Florim relaunches the historic CEDIT - Ceramiche drsquoItalia brand (which opens its first flagship space in Milan) and FLORIM stone the Groups first brand focusing on the interior design sector
MADE IN FLORIM
Over 50 years of history
Over 1300 employees worldwide
27 million square meters produced every year
406 million Euro turnover
1424 tons of CO2 not emitted in 2015 thanks to the photovoltaic system
It takes more than figures to define a company Today passion innovation a constant commitment to improvement and corporate social responsibility are the core values of a new way of doing businessthe MADE IN FLORIM way
Our History 1962
1967
1976
1981
1984
1990
1992
1994
1995
2000
2005
2006
2011
2013
2014
2015
2016
Watch the Floriminstitutional video
2016 Sustainability Report 9
Our Locations The map shows the grouprsquos headquarters showrooms production plants and logistic hubsFlorim brand products are available from top international customers and importers
Our Brands
Floor Gres is the brand specifically for innovative architectural projects The Floor Gres product range meets all the many and varied needs of contemporary architecture in terms of design and technical capabilities and environmental standards
Rex is the brand which denotes stylistic excellence with products inspired by precious natural materials (wood marble and stone) coordinated floor and wall coverings in which the surfaces interact to generate a new language in home design
Cerim is the brand that focuses primarily on color and on decoration Coverings designed on an integral basis to make the most of all parts of the home and offer solutions that adapt to the most diverse interior design contexts
Casa dolce casa and Casamood is the brand intended for high-end architecture and interior design and offers attractively blended colours and surfaces drawn from nature for the creation of warm interiors A range of matching colours and surfaces that combines porcelain stoneware with other types of materials Architectural design effects are blended with the language of interior decoration to create new types of relationships
CEDIT - Ceramiche drsquoItalia embodies the dialogue between art craftsmanship and technology The brand that shapes ceramic matter in the service of creativity allowing leading names of our time to express themselves to their full potential Large designer slabs that renew the concept of architectural space
FLORIM stone is the brand that combines performance and practicality with the utmost personalization of spaces Large porcelain stoneware slabs at the service of interior design professionals delivering creative flexibility with outstanding technical performances and appearance values
Florim USA is the brand of the American subsidiary its porcelain stoneware tiles for residential and commercial use manufactured in the plant at Clarksville (Tennessee) are tailored to suit the tastes of the largest possible segment of the North American market
FLORIM USASite production plant and logistics hubClarksville TN (USA)
Flagship StoreNew York NY (USA)
Logistics hubParanagrave (BRAZIL)
OceSingapore (SINGAPORE)
Flagship StoreMoscow (RUSSIA)
Site production plant and logistics hubFiorano Modenese (Modena ITALY)Production plantMordano (Bologna ITALY)
- Flagship Store- Spazio CEDITMilan (ITALY)
2016 Sustainability Report10
Our Design ServiceAs well as the product itself Florim offers a unique level of technical support throughout the various design phases From the feasibility study to the final installation Florim Solutions works side by side with the architect providing skills and experience whenever the style and performance of porcelain tiles become fundamental to the project In the age of speed and the digital revolution the company has also created an integrated web platform to give its professional partners unbeatable service Exclusive events visibility for projects free training meetings and specific competitions are just some of the services offered by Florim4Architectscom
Expo Azerbajan Pavilion winner of the Florim4Architects ldquoProject of the Yearrdquo competition
2016 Sustainability Report 11
Our 2016In this section we focus on the latest news from the Group covering a wide variety of aspects but all confirming the importance of Florims large slabs and once again underlining the centrality of innovation for the companys business
New brands
In April Florim chose the Salone Internazionale del Mobile a major event for the global design community for the relaunch of the CEDIT - Ceramiche drsquoItalia brand The brand which has always had links with leading artists designers and architects has achieved a superlative creative standard over more than fifty years of experimentation with materials and stylistic research in ceramic design CEDIT is returning to the forefront of Italian manufacturing in partnership with some of contemporary Italys top creative names Its new identity is a fine blend of Craftsmanship and Innovation expressed on the large slabs produced by Florim technology December saw the official opening - in the heart of Milan - of the first Spazio CEDIT the tangible expression of an innovative display concept created to convey the brands philosophy to the world
The brand created to explore new application solutions reaching beyond the conventional construction concept is called FLORIM stone Launched at Cersaie - the biggest ceramics industry show - this brand combines the outstanding performances of porcelain stoneware with the utmost personalisation of spaces The dimensional and functional plus factors of latest-generation large slabs allow stoneware to be used in a versatile customized way not just as a wall and floor covering but also for tops and furnishings (tables kitchen worktops and bathroom counters doors and fireplaces are just some of the possible applications)
New look
A busy year partly due to the refurbishment of the Fiorano Modenese headquarters As well as the new gatehouse the faccedilade of the office building was also restyled bringing it up to date with an all-white lookAn innovative modification at the technological state of the art was made to the raw material shed with a ventilated faccedilade of almost 1900 msup2 of Magnum Oversize large slabs The installation reproduces the ldquoArcheologierdquo collection (designed by artist Franco Guerzoni for CEDIT) and the lake of Vernago in Italys Alto Adige region (photo by Vanni Borghi) A latest-generation project leading the way in technology safety and maintenanceLast but not least a new barrier was also designed and constructed to separate the Florim property from the SFrancesco road It took 3 months to erect a boundary fence of about 340 meters of double-sided porcelain stoneware slabs 180 cm high and 265 cm wide supported by a steel frame With a total of 1122 slabs the fence was designed to withstand weather earthquakes and the forces generated by traffic passing at high speeds Installed at different angles the slabs create attractive effects with light and shade demonstrating the importance of sophisticated aesthetics to the companys identity
New Awards
Florims large slabs are the featured products in the various awards received and have been assigned one of the most important accolades in the design world with an Honourable Mention at the XXIV edition of the ADI Compasso drsquoOro awards
Just a few months after its launch the CEDIT brand also received major awards at the global level the NYCxDESIGN Award in New York the Hospitality Design Awards in New York ldquo100 Best of 2016rdquo at the Archiproducts Design Awards 2016 and the Best of the Best (April 2017) in the Design Product category at the coveted German Red Dot Design Award
More recognition came from the Emilia-Romagna Regions 2016 awards for Corporate Social Responsibility projects run in the local community A prize in the ldquoBusiness and Educationrdquo category was assigned to the Master in Florim project which aims to give young people the skills required for sustainable development
Learn moreabout CEDIT
Learn moreabout FLORIM stone
2016 Sustainability Report12
In the age of digital transformation Florim still believes in the importance of creating opportunities for meeting and exchanging ideas and in 2016 more than 12000 people came to the Florim Gallery (a multi-purpose space of 9000 msup2 at the Fiorano headquarters) Events of social usefulness workshops community projects and business occasions our training events and hospitality staff were busy on many different fronts It was also a major year for off-site events The Florim Flagship Store in Milan and the just-opened New York Flagship Store hosted more than 3200 people at events for architects and designers supported with important partnerships with POLIdesign and leading publishersFlorim also chose the world-famous Peggy Guggenheim Collection in Venice as the location for two exclusive events to highlight the partnership agreement signed with Guggenheim Intrapresaelig A dinner in the wonderful setting of the museums panoramic terrace followed speeches by distinguished guests Ettore Mocchetti Martino Gamper Domitilla Dardi Giorgia Zanellato Daniele Bortotto Franco Guerzoni and Benedetto Fasciana The final event of the year was held for the employees with a ldquoWhite Christmas Partyrdquo evening at a Florim Gallery decorated for the festive season
A year of Florim events
LrsquoArte del Design - Florim event at the Peggy Guggenheim Collection (Venice)
2016 Sustainability Report
View the Florim eventat the Guggenheim
2016 Sustainability Report 13
GOVERNANCE
Code of EthicsThe groups governance plays a central role in the responsible development of its business ensuring ethical transparent management of its operations with its stakeholders interests always in mind
After approving the Governance Model compliant with the provisions of Italian Legislative Decree 2312001 the Florim Board of Directors signed and promoted the corporate Code of Ethics (revised in June 2016) which has become an integral part of Florims business and is accepted by every new employee supplier and agentTo guarantee the application of and compliance with its contents a Supervisory Board was established to detect any breaches of its provisions All stakeholders can also contact the Supervisory Board (organismodivigilanzaflorimit) for further explanations regarding the interpretation and application of the corporate Code of Ethics as described on the corporate websiteThe following is an extract from the rules of conduct which govern the way we do business
Our mission
To manufacture ceramic tiles and materials for multiple uses and offer the most appropriate solutions for both interior design and architecture To constantly prioritise environmental sustainability attempting to satisfy the needs of customers and to create value for shareholders employees and the local community in compliance with the ethical principles and rules of conduct set out in the Code of Ethics
Our vision
To be at the cutting edge of technical and design innovation in ceramics by developing materials and production methods that position us as a constant benchmark for customers architects and competitors
Our values
Honesty and Respect all internal and external relationships must be based on honesty and respect for rules and dignity of the individual
Corporate Social Responsibility corporate social responsibility must be promoted through measures and practices adopted to support the local environment and community
Individual Responsibility everyone must be aware of the worth and consequences of their own actions
Quality and Innovation excellence must be pursued by improving products processes and skills to promote corporate success
Transparency intentions and positions must be expressed openly and clearly without misunderstandings or misrepresentation to build lasting relationships based on trust both inside and outside the company
Courage a moral strength which enables us to undertake and deal with changes difficulties and challenges to benefit from all the opportunities they offer
Feeling of Belonging feeling proud to be a part of one big team made up of the company associates customers and suppliers
Management System Policy
To achieve greater and greater transparency in its reporting the company has drawn up guidelines for its quality environment safety and energy management system Read more
2016 Sustainability Report14
Corporate BodiesFlorim Ceramiche spa is a family-run business with fully subscribed paid-up share capital consisting of 50000000 ordinary shares with a face value of 1 Euro each The capital is 100 owned by the holding company FinFloor spa with registered office in Fiorano Modenese which is in turn indirectly owned by the Lucchese family through Fin-Twin spa
The Board of Directors has 11 members
CLAUDIO LUCCHESE Chairman
DONATO BRUNI Deputy Chairman
MARIADELE LUCCHESE Director
ANNA LUCCHESE Director
FRANCESCA LUCCHESE Director
GIOVANNI LUCCHESE Director
The Board of Directors has a mandate of one year and new elections will coincide with the approval of the financial statements The Board of Statutory Auditors is composed of three members whose term of office is three years from their appointment on 1252016 until approval of the 2018 financial statements The financial statements of Florim spa and the consolidated financial statements of FinFloor spa and Fin-Twin spa are audited and certified by Deloitte spa
Corporate StructureThe changes to be noted since the previous financial statements include the incorporation of ldquoMordano 4 srlrdquo and amalgamation by acquisition of Maker srl in Florim Ceramiche spa
KRONOS 2 CERAMICHE spaShare capital euro 1646799
Fondazione Ing G LuccheseEndowment euro 60000
FABBRICA delle MATERIE srlShare capital euro 10000
EDIL FLOOR surlShare capital euro 9812681
ISABELLA srlShare capital euro 100000
FI HOLDING IncShare capital USD 50000
100
10
100
30
9667
100
1
1
99
99
100
FIN TWIN spaShare capital euro 540800
FINFLOOR spaShare capital euro 10500000
542810
FLORIM CERAMICHE spasingle shareholder companyShare capital euro 50000000
100
FLORIM BRASIL LtdaDISTRIBUICcedilAtildeO DE CERAcircMICAS Ltda
Share capital R$ 46100000
FLORIM RUSShare Capital 100000 Roubles
FLORIM USA incShare capital USD 51865541
FLORIM SOLUTION IncShare capital USD 845943
100
MORDANO 4 srlShare capital euro 100000
85
FLORIM FAR EAST PTE LtdShare capital S$ 10000
100
ERMES GIUSEPPE FERRARI Managing Director
GIOVANNI GROSSI Managing Director
OSCAR ISEPPI Managing Director
DORVAN SAZZI Managing Director
STEFANO TORRENTI Managing Director
2016 Sustainability Report 15
StakeholdersStakeholders are all individuals and groups who may influence or be influenced by a companys operations in terms of policies products and working processes shareholders employees customers and consumers suppliers local government the local community banks and trade unions
Employees and Trade Unions
Florim makes the following commitments to its employees
bull to guarantee equal opportunities fair pay and professional growth
bull to reward its human resources on the basis of transparent meritocratic criteria
bull to create safe working environments and processes
bull to guarantee transparency and clarity in contract conditions
bull to encourage dialogue and internal communications
Customers and Consumers
In dealing with its (retail) customers Florim is committed to
bull creating a relationship of trust as a stable basis for business
bull guaranteeing clarity in contracts and prices
bull guaranteeing the reliability of its products and developing customer service
bull offering innovative safe environmentally sustainable products
bull providing a diversified offering with services with high value added
The overall aim is also to satisfy the expectations and demands of the final consumer
Developers Architects and Interior Designers
To meet the needs of developers Florim is committed to
bull offering state-of-the-art solutions in terms of environmentally sustainability technology and design
bull establishing and fostering relationships with partner professionals
bull providing consulting and technical experience from the project concept through to installation
bull supplying turnkey solutions
Local Communities and Local Government
In its relationships with local communities and local institutions Florim is committed to
bull guaranteeing dialogue cooperation and transparency
bull giving value back to the local communities in the areas where it operates
bull continually improving the environmental performances of processes
bull researching developing and using the most sustainable technologies
bull making an economic contribution to local sporting and social projects for children and young people
Suppliers
When selecting its suppliers Florim pays close attention to companiesrsquo CSR practices Florims relationships with its suppliers are based on compliance with the values of its code of ethics otherwise contracts are automatically terminated Florim also guarantees certainty in payment times and compliance with contract terms provided the goods and services contracted are delivered as agreed
ERMES GIUSEPPE FERRARI Managing Director
GIOVANNI GROSSI Managing Director
OSCAR ISEPPI Managing Director
DORVAN SAZZI Managing Director
STEFANO TORRENTI Managing Director
2016 Sustainability Report16
Materiality ApproachIn 2015 the company began an internal analysis process based on the materiality principle in order to identify the sustainability issues of relevance both for the Group (including Florim USA) and for all stakeholders Materiality is the threshold above which a topic becomes sufficiently important to be included in the report In fact organizations are faced with a large number of topics on which they could report Relevant topics and indicators are those considered important for reflecting the organizations economic environmental and social impacts or which influence the decisions of its stakeholder and which therefore potentially merit inclusion in the report In accordance with the GRI ndash G4 Guidelines Florim has analyzed and identified relevant topics which were assessed by the working team which drafted the Sustainability Report on the basis of discussion with the main stakeholders The findings which emerged were supported by a qualitative survey external to the companys context examining an analysis of the press gallery (more than 650 articles) competitors Sustainability Reports the Emas Study of the Fiorano and Sassuolo Ceramics District and the GRI document ndash ldquoSustainability Topics for Sector What do Stakeholders want to knowrdquo
In the chart below the aspects found to be most important appear in the top right-hand corner and constitute a strategic priority for the Group The topics in the bottom left-hand corner such as biodiversity prevention of corruption and absence of discrimination are less relevant because they are easy for both the organization and stakeholders to manage and no problems have ever been reported over the years Similarly the protection of human rights is now taken for granted since Florim complies strictly with all the provisions of the National Employment Contract
Importance for stakeholders
Importance for Florim spa
low
m
ediu
m
high
low medium high
Biodiversity
Indirect economic impacts
Prevention of corruption
Market share
Absence of discrimination
Sustainable transport
management
Protection of Human Rights
Environment and safety
Water saving
Energy efficiencyRaw materials
Diversity and equal opportunities
Transparency of financial and other
information
Ethical supplier
management
Investments in the local community and social welfare
Direct and indirect environmental
impacts
Green products and
services
Economic performance
Quality of products offered to customers
Regulatory compliance
Development of human resources
and training
ENVIRONMENT
COMMUNITY
EMPLOYEESASSOCIATES
ECONOMIC PERFORMANCE
PRODUCT RESPONSIBILITY
HUMAN RIGHTS
2016 Sustainability Report 17
FinFloor consolidated (in thousands of Euro) 2012 2013 2014 2015 2016
Net earnings 315344 325853 329533 374094 406759
EBIDTA 59608 72986 84395 98115 107186
Operating result 35717 50996 58508 66255 71028
Gross cash flow 52710 68312 83274 97268 109148
Net profit 26103 35732 36433 43324 49347
Net financial indebtedness (127730) (96500) (54524) (27326) (12508)
Final inventory 95514 84432 90283 92795 96721
Net shareholders equity 186905 218847 276916 332721 369937
Total investments 32572 48780 41584 34215 53531
2012 2013 2014 2015 2016
Waste produced (t) 30228 21170 22300 30862 34423
Recycled third-party waste (t) 4028 4190 1721 2570 5627
Total water consumption (msup3) finished product (t) 075 075 078 069 071
Recycled water percentage 100 100 100 100 100
Self-generated energy in relation to consumption 67 68 62 65 75
Investments in environmental management (euro000) 13617 2493 1995 465 6400
2012 2013 2014 2015 2016
Number of employees at 3112 1037 992 984 982 987
Total number of training hours 14690 9124 9056 7176 10606
Number of training hours on environment and safety 7572 4514 4200 3008 2489
Number of workplace injuries 63 62 74 56 43
Environmental and social profile figures refer to Florim Italy for Florim USA please see the relevant section (from page 37)
REPORTING
In brief
Economic Profile
Environmental Profile
Social Profile
2016 Sustainability Report18
Economic Responsibility
Comments on 2016 Economic Data
The Groups 2016 results were again good from every point of view
Compared to the previous year turnover increased by 87 leading thanks to careful management of production costs to an EBITDA of Euro 1071 million equivalent to 263 of turnover and a profit after tax of Euro 493 million
The companys financial data also significantly improved with a net financial position of Euro 125 million compared to Euro 273 million at the end of 2015 in spite of record technical investments of Euro 535 million and financial investments of Euro 11 million
Once again underlying the results achieved were large investments in latest-generation machinery and technologies painstaking research to develop materials with exceptionally high technical and design content human resources and projects for the increasingly direct promotion of Florims image and quality standard
Investments
The technical investments made in 2016 amount to Euro 535 million while Euro 11 million was spent on reacquiring 100 ownership of Maker srl followed by its amalgamation with Florim spa on 31 December The most important industrial projects included the continuation of the work on the Mordano plant which involved investments of Euro 26 million for the restructuring of the raw material preparation area and the doubling of production capacity for traditional porcelain stonewareThe investments of US$ 18 million at Florim USA were utilised to complete the renewal of the raw material preparation area and construct a new building for the technical organizationFinally about 9 million Euro was invested at Fiorano on various production line modernization projects
A creative hub for design style and new trends Milan once again confirms that it is the ideal setting for Florims investments and the opening of the all-new ldquoSpazio CEDITrdquo confirms the companys determination to strengthen its bonds with design professionals working in high-end interior design The culture of beauty art architecture and design are all integral to the genetic make-up of CEDIT ndash the historic Italian brand relaunched by Florim in 2016 ndash and dominate the display areas and the first six ceramic covering collections styled by famous names on the contemporary creative sceneOn two levels with a total floor area of more than 200 msup2 the space maintains the same stylistic identity as the one at Fiorano Modenese since they are both constructed to an architectural design intended to be replicated in CEDIT customers showrooms worldwide
Spazio CEDIT Watch theinauguration video
2016 Sustainability Report 19
Economic Value Generated and Distributed
The figures for the economic value generated and distributed provide a simple clear explanation of how Florim has created wealth and redistributed it to its stakeholders The table below contains the data from Florims 2016 financial statements approved by the Board of Directors on 30 March and certified by external auditorsThe economic value directly generated is represented by the total earnings for 2016 while the economic value distributed includes the costs incurred for suppliers and employees payments to the state (taxes) and the donations which had positive repercussions for the community to which Florim spa belongs
Heading 2014 2015 2016
Revenues 253125 269855 302521
Direct economic value generated 253125 269855 302521
Operating costs 135735 150951 168809
Employee wages and benefits 56985 58149 62418
Payments to providers of capital 7413 6399 11903
Payments to government 15738 13162 15382
Community investments 221 212 240
Economic value distributed 216092 228873 258752
Economic value retained 37033 40982 43769
KeyRevenues net sales plus revenues from financial investments and sale of assetsOperating Costs payments to suppliers non-strategic investments royalties payment facilitationsEmployee wages and benefits employee wages and benefits per employees (current payments)Payments to providers of capital all payments to the organizations providers of capitalPayments to government gross taxes and dutiesCommunity investments voluntary donations and investments in the communityEconomic value retained calculated as economic value generated less economic value distributed
The data in the table are in thousands of Euro and refer to the consolidated financial statements of the Italian companies only
KBIS (USA) - detail of the stand created with ldquoI Classici di Rexrdquo
2016 Sustainability Report20
Casa dolce casa ndash Argille 20 Collection
2016 Sustainability Report 21
Environmental ResponsibilityEffective environmental policy management energy saving and emissions reduction are amongst Florims strategic sustainability objectives
Our green projects in figures
2 highly-regarded process certifications
ISO 14001 (ENVIRONMENT)and ISO 50001 (ENERGY)
849873 MWh is the amount of electricity the
company succeeded in producing in-house during 2016
2 departments (marketing and communications)
engaged on digitizing advertising tools
8462 tons of CO2 NOT emitted
CO2
100 is the percentage of wastewater recycled
16000 msup2of photovoltaic panels covering
an area of 30000 msup2
75 is the percentage of the electricity consumed which is
produced in-house
4 latest-generation industrial kilns installed in
the last 3 years
4 different types of environmental product
certification
2 cogeneration plants to increase energy saving
and efficiency
1 laboratory for the development of contemporary design projects with a specific focus on the materials green
content
100is the percentage recycling of
industrial greenware waste in the production process
2016 Sustainability Report22
Certifications
System and process certifications
UNI EN ISO 14001TUumlV has awarded Florim the highly-regarded UNI EN ISO 14001 voluntary certification which confirms its compliance with a series of internally certified procedures intended to improve the internal environmental management system The decision to seek this certification springs from the desire to reconcile quality with efficiency and productivity while protecting the environment and community in which the company operates
UNI EN ISO 50001Thanks to a careful energy management policy and aided by the latest investments in the production area also intended to improve energy efficiency Florim was the worlds first ceramics manufacturer to obtain ISO 50001 certification of its Energy Management System
In addition to its environmental certifications Florim has also been awarded prestigious AEO (Authorized Economic Operator) status
Further to a lengthy and demanding audit process by the Customs Authorities in 2016 Florim was awarded AEO certification the first company in the Province of Modena to receive this major form of approval Authorised Economic Operator status guarantees the companys absolute compliance with customs and security requirements in its foreign trade
Environmental Management
Waste 2012 2013 2014 2015 2016
Total waste produced (t) 30228 21170 22300 30862 34423
Non-dangerous recyclable waste (such as paper and cardboard fired scraps plastic glass and wood) ()
989 982 985 991 989
Non-dangerous disposed-of waste (such as the waste picked up by the motor sweepers) ()
02 04 02 02 02
Dangerous recyclable waste (such as spent oil batteries and monitors) ()
00 01 01 01 00
Dangerous disposed-of waste (such as spent lime) () 01 13 12 07 09
Third-party waste recycled within the production process (t) () 4028 4190 1721 2570 5627
Besides recycling greenware waste from its own production cycle (not included in the table because the amount cannot be calculated) Florim also recycles third party waste
Florims operations have always been oriented towards optimization of impact on the local community and environment Thanks to the work of its research laboratories the support of all staff and the recent investment plans tangible results have been achieved The data provided below reveal that in spite of an increase in production of 8 compared to the previous year consumption remains low The companys commitment to environmental protection is all-inclusive and also comprises a focus on the district within which it operates One example is the total removal of all asbestos cement from the Fiorano Modenese plant and the creation of the new recycling station opened in 2015 and donated to the Local Authority as a public serviceAs in previous years during 2016 Florim was not fined for any breaches of environmental regulations or laws
Florim recycles and optimises within the production process all greenware scraps dust residues from filters and sludge from the process and rectification wastewater treatment system The waste produced is detailed in the table the significant differences between years are due mainly to the major demolition and subsequent reconstruction works undertaken at the Italian plants
Waste Management
2016 Sustainability Report 23
Water Resources
No environmental impact of wastewater discharges is specified since all the water from the production cycle is completely reused (100) All other effluents comply with legal requirements
The figure states the total cubic meters of water used per ton of finished product The water used in the Fiorano production process is drawn from private company-owned wells with water from the public main only used for non-industrial purposes The Mordano plant is supplied by an industrial water main Water use is measured by means of meter readings Four highly innovative dry rectifying plants have gone into production at Mordano since 2015 enabling the company to eliminate the physicalchemical treatment of the water used in the rectification process
WATER USE
2012
08
2013
08
2014
08
2015
07Total water consumption (msup3) finished product (t)
07
2016
All packaging used for Florim materials is made from recycled paper and parts of the coverings used to protect pallets of finished products consist of recycled plastic Whats more all the packaging used (boxes cardboard shrink wraps pallets etc) can be completely recycled by the end user The latest investments made include new eco-friendly packaging machines increasing the number of these machines installed to 15 These plants completely eliminate waste due to leftover inventory saving significant amounts of cardboard
Packaging and Coverings
As the materiality assessment states Florim has no significant impacts on the biodiversity of its local area since the company is located inside the Fiorano Modenese ceramics manufacturing district at least 5 Km from the nearest nature reserve at Salse di Nirano Florim takes special care over the choice of the raw materials used for its tile body mixes of which it is required to provide documentation guaranteeing compliance with the European Directives protecting wild birds (EU Dir 79409EEC) and habitats (EU Dir 9243EEC) and the United Nations Convention on the protection of biodiversity It has also introduced a software program - used at the 3 production plants (Italy and the USA) - for the management of data on the origin of raw materials such as quarry location distance from the factory recycled content declaration technical safety and radioactive content data sheets and the expiry of the quarrying permit issued by the government
Raw Materials and Biodiversity
2016 Sustainability Report24
Energy Management
There is no disputing that large amounts of energy are required to power the production processes of ceramic tile plants with consequent direct and indirect impacts on the local area and the environmentThe main indicator used to measure plants energy performance is the mean specific total energy consumption (TEJ) measured in GJt of product transferred to stock As the table below shows this figure is obtained by adding together heat consumption (NGJ) and electricity used (EEJ)
Parameter ndash Definition Unit of measurement
2012 2013 2014 2015 2016
NGJ Mean specific natural gas consumption in relation to the unit of weight of finished product transferred to stock
GJt 557 571 576 578 598
EEJ Mean specific electricity consumption in relation to the unit of weight of product transferred to stock
GJt 111 108 111 108 107
TEJ Mean total specific energy consumption in relation to the unit of weight of product transferred to stock
GJt 668 679 686 685 705
Self-generated electricity as a proportion of consumption
67 68 62 65 75
With two cogeneration plants (for the combined in-house production of heat and electricity) and 16000 msup2 of photovoltaic panels the company certainly sets a new benchmark for the entire ceramic tile industry 2016 saw the replacement of the Fiorano turbine set (the main component of the cogeneration plant) while the one in Mordano was kept in operation 247 factors which led to a 10 increase in in-house electricity production in relation to consumption To provide a clearer idea of the scale of the achievement the amount of electricity the company generated in-house in 2016 (849873 MWh) would cover the average annual consumption of about 37000 households (With consumption per household of 229 MWh - data from the latest ISTAT survey in 2012ndash calculated on the Italian average)
Photovoltaic Plant
kWp kWh produced kg of CO2 not emitted
270021 15937250 8462680
Good Practice
The head office organizations are also optimizing paper and energy consumption In addition to issuing and distributing the energy saving handbook for its offices the company is also trying to maximize savings on the raw material used and specifically the use of paper Internally the company only purchases reams of paper which carry environmental certification and the paper used in offices is collected separately for proper disposal Externally the company distributes a system of merchandising products made mainly from recycled paper and encourages the gradual digitization of its marketing tools as well as publishing all its catalogues in digital format on its Internet sites Florim offers its distributor companies an innovative digital touch screen tool with the pdf versions of the catalogues and other tools for the final consumerIn 2016 Florim decided to adopt a new payslip distribution procedure introducing an online processing system As well as providing employees with new functions and greater operating flexibility thanks to this system the company no longer prints out the monthly payslips saving paper ink and energy The scheme initially involving all office workers has the ambitious target of also including the staff of the Fiorano and Mordano plants
The 16000 square meter photovoltaic plant received recognition from GSE (Energy Management Services) as one of the most innovative installations of its type and from its commissioning (October 2011) up to December 2016 it produced the following results
2016 Sustainability Report 25
Atmospheric Emissions
The industrial facility emits greenhouse gases basically CO2 from the following main sourcesbull combustion from the burning of fossil fuels (such as natural gas)bull processes from the minerals in the raw materials any organic matter in the clays used and any organic additives in tile body mixes
In order to comply with Directive 200387EC (ETS - Emission Trading Scheme) Florim has been reporting and certifying its CO2 emissions since 2013
CO2 emissions 2013 2014 2015 2016
CO2 emissions (t) 102728 103462 111862 132960
CO2 emissions (t) Finished product (t) 033 033 033 035
Emissions from the production cycle 2013 2014 2015 2016
Particulate material (gmsup2 finished product) 223 130 098 118
Lead (gmsup2 finished product) 000 000 000 000
Fluorine (gmsup2 finished product) 014 018 013 012
The increase in CO2 is due mainly to the large increase in the square meters produced (+ 8) and the 247 use of the cogeneration plant However it should be noted that the cogeneration plant provided a 10 increase in in-house electricity generation with lower CO2 emissions than electricity purchased from the grid produced mainly using fossil fuels (source ISPRA Fattori di emissione atmosferica di CO2 e sviluppo delle fonti rinnovabili nel settore elettrico Rapporti [Atmospheric CO2 Emission Factors and Development of Renewables in the Electricity Sector Reports] 2122015)The ratio between CO2 emissions and tons of finished product produced increased because in 2016 the sale of spray-dried material to other companies rose compared to the previous year (emissions from this phase are included in the emissions count but there is no corresponding output of finished product)
In a change from previous years the new GRI-G4 guidelines also require reporting of nitrogen oxide and sulphur oxide emissions Nitrogen oxide (NOx) emissions are within the limits permitted under the integrated environmental authorisation Sulphur oxide (SOx) emissions are not reported here since this figure is not required by the IEA
Transport
The materiality study reveals that transport is a significant factor for both stakeholders and Florim itself The company is not able to measure the impact of transportation of finished product on the local area since all shipments are ex-works However Florim which has been introducing electric vehicles to replace its oldest most obsolete unleaded petrol forklifts for years now has further optimized the handling of materials thanks to the new highly-automated logistics hub created at the via Canaletto location In 2016 about 53 of the vehicles used on the companys premises were electric with no direct greenhouse gas emissions
2016 Sustainability Report26
CEDIT ndash Creative Composition
2016 Sustainability Report 27
Workforce Composition
In 2016 the workforce included 27 people with disabilities 6 women and 21 menBearing in mind the job descriptions arising from the specific industrial sector the breakdown between men and women is in line with the industry average Male office workers and executives earn an average of 10 more than women for jobs of equal responsibility Among blue-collar workers the difference is 7 The company had a total of 29 foreign employees 24 at Fiorano and 5 at Mordano
Manager Executive Office worker
2013 2014 2015 2016 2013 2014 2015 2016 2013 2014 2015 2016
Women 2 3 3 3 3 1 1 1 137 142 133 149
Men 18 21 20 18 21 24 25 28 127 132 128 132
Total 20 24 23 21 24 25 26 29 264 274 261 281
Office ancillary Blue-collar worker Total
2013 2014 2015 2016 2013 2014 2015 2016 2013 2014 2015 2016
Women 18 16 25 19 226 219 212 196 385 381 375 368
Men 64 68 79 64 376 358 356 377 607 603 607 619
Total 82 84 104 83 602 577 568 573 992 984 982 987
Social Responsibility
Employees amp Corporate welfare
Its employees are the heart and soul of Florim they provide its character and its DNA Since 2009 when the current major economic crisis began Florim has undertaken a number of income support programs for its workforce Below we summarise some of the ongoing programmes and others run in 2016bull Ending of the Income Support Program for the Mordano plantbull Agreement with Sassuolo Hospital under which Florim employees and their family members enjoy discounts and shorter waiting times for specialist examinations and outpatient diagnostic tests performed on a private basisbull Special agreements with local health facilitiesbull Tax advice at special rates bull Special terms for banking services with financial consultants on-sitebull Discounts on the purchase of Florim products for employees homesbull Free entry to the Peggy Guggenheim Collection in Venice for employees and concessions for family membersbull Free provision of water and mineral salts in the plants during the summerbull Distribution of fuel vouchers to employees for the Christmas holidays
Summer Play Schemes and Cregraveches
In 2016 the summer play schemes for the children of employees at Fiorano and Mordano were continued for the fifth year in succession Seven different centers across the area between Modena and Bologna hosted 85 children (twice the number of the previous year) the company paid the fee for two weeks attendanceWhats more since 2013 the company has negotiated special terms with local cregraveches which now offer a number of places for employeesrsquo children at a reduced fee
2016 Sustainability Report28
Human Resources Management Policies
In July 2015 on renewal of the in-house supplement to the national employment contract the Management introduced a new phase in its relations with the Trade Unions with the aim of continuing and improving the good relationships enjoyed for decadesThe new company contract applied for all employees at the Fiorano headquarters includes more facilitations for part-time working the willingness to allow flexitime where feasible and the commitment to invest in staff training in order to generate full benefits from intellectual capital The company and the trades unions agreed on a plan to improve efficiency fundamental for maintaining the current level of competitiveness by establishing improvement in Production Efficiency and EBITDA as criteria for the payment of the new Performance Bonus The individual Attendance Score is considered together with these parameters The 2016 Performance Bonus in its first year of application was 20 higher than that paid in 2015 In addition in response to employees requests the Company increased the number of approved canteens extending the choice available and also introduced weekly laundering of work clothing for all production workersWith regard to applications for severance pay advances the Company confirms its commitment to continuing the policy implemented so far
Training
Florim believes that in-house training plays a key role in the companyrsquos development and provides a tool for stimulating and fulfilling the potential of its human resourcesMore than 10600 training hours were provided in 2016 to 847 people with an average of more than 11 hours of training per employee New projects included a 6-month on-line English language course which attracted a large number of participants and two highly structured training courses for the sales division and the communication department A retraining program for workers at the Mordano plant was also completed it comprised 4 technical courses attended by 31 people for an average of 13 hours per person Another new entry for 2016 was an innovative procedure for acquiring information about training needs using an on-line questionnaire available to all employees as well as line managers specific recommendations The Master in Florim project is discussed in depth in the specific section
Health and Safety
Florim was the first Italian ceramics manufacturer to receive BS OHSAS 18001 (Occupational Health amp Safety Assessment Series) certification from TUumlV this international standard certifies the implementation of an internal management system oriented towards occupational health and safetyThis major award confirms the companys constant commitment to the well-being of its employees Every year in addition to engineering inspections and machinery maintenance a number of hours of safety training are organised to raise awareness among workers and supervisors Specifically in 2016 2849 hours were dedicated to safety training and a significant reduction in injury rates was recordedMoreover BLSD refresher courses are continuously held for the team of Florim employees trained in first-aid operations and the use of the defibrillators available on site
2012 2013 2014 2015 2016
Number of workplace injuries 63 62 74 56 43
2016 Sustainability Report 29
The Master in Florim organized for the fourth time in 2016 is a vocational training project which aims to bridge the gap between education (high school or university) and the world of work The program which is one of the companys Social Responsibility projects sets out to help young people to get to know the company through a well structured work experience plan It offers a distinctively northern European approach with a method which alternates classroom teaching with internships in the various areas of the company Participants new university or high school graduates specialising in various subjects all below 30 years of age are therefore able to gain hands-on experience of all Florim departments from RampD to the production process and product distribution for an all-inclusive vision The MASTER courses ambitious aim is to match the individual participants talents with the companys real needs At the end of each edition the company hires all or some of the selected candidates enabling it to acquire new skills new experiences and new energy
Master 40 in figures
20 young people taking part6 months of training13 external lecturers264 hours of classroom teaching392 hours of practical training4 company visits (Ferrari Tetrapak Cremonini and Ducati)50 days of work experience on rotation involving 15 departments1 month of project work
The projects prestige is enhanced by its economic context since Florim pays the young participants for the entire period and its aim is to deal with the thorny problem of youth unemployment The Master has won approval from various faculties at major Italian universities The project was also a winner in the Emilia-Romagna Regions 2016 awards for Corporate Social Responsibility projects run in the local community A prize in the ldquoBusiness and Educationrdquo category was assigned to the Master project which aims to give young people the skills required for sustainable development
Master in Florim
2016 Sustainability Report
Watch the videoof the 4th edition
2016 Sustainability Report30
Local Community amp Culture
This chapter describes a number of programs Florim runs for the local community in the area where it originated and where it has been working for more than 50 years
Politecnico di Milano
Since the 20052006 academic year Florim has been a partner sponsor of a large number of Postgraduate Courses run by POLIDesign the Politecnico di Milano consortium which organizes its Master Degree coursesAlso in association with POLIDesign since 2012 Florims Milan showroom has hosted several design events for architects and designers of every nationality
Aziende modenesi per la RSI
ldquoAziende Modenesi per la RSIrdquo an independent open inclusive association of companies in the Modena area which believe in the principles and values of Corporate Social Responsibility was established by public deed on 30 September 2014 with Florim as a founding member Florim hosts the associations member companies every year to discuss the various topics proposed
Premio Lucchese
The Premio Lucchese presented for the twenty-ninth time in 2016 was established in memory of Giovanni Lucchese and consists of scholarships awarded to students at the ldquoAlessandro Voltardquo Technical High School in Sassuolo who graduate with full marks The award ceremony held every year at the Florim Gallery in association with Societagrave Ceramica Italiana of Bologna includes a talk given by a leading personality on a topic of current interest to an audience of eager young listeners
Intrapresaelig Collezione Guggenheim
As befits a company that combines the values of its local community and historic and artistic heritage with a flair for research and innovation Florim recently launched a partnership with the Peggy Guggenheim Collection Since its foundation Florim has always had a unique ability to incorporate the true cultural significance of its industry in its business model and by this project once again confirms its commitment to promoting art by supporting a collection of extraordinary beauty
Fondazione Ing Giovanni Lucchese
More than thirty years after the untimely death of Giovanni Lucchese ndash founder of what was then Floor Gres currently Florim ndash in 2013 his family established a Foundation in his name which since then has funded organizations and associations that support families in need in the ceramics district The Foundation also supports a variety of projects such as the summer play scheme for employees children the Premio Lucchese and the Florim HealthampTraining Center described in more detail below
The main projects undertaken in 2016 include the funding of the purchase of 10 defibrillators for the Municipality of Fiorano and the contributions made to the purchase of paediatric ambulances for the local area and to support the Parish charitable organizations and social services in the district
Watch the Premio Lucchese video
The project run jointly by Florim and Sassuolo Hospital adopts a completely new model combining industrial culture and healthcare in an original way to benefit the local people and community thanks to the coming-together of a ceramic coverings manufacturer and the public-private joint venture Ospedale di Sassuolo Spa Florim HealthampTraining is the synthesis of this idea an experimental center which promotes local training for healthcare and other staff health education and information advanced medical simulation and research
The Center
On the main Florim site and opened on 16 April 2014 the Center is 550 square meters in area and contains a modular lecture theatre able to seat over 100 people and a number of classrooms for seminars and lessons At its heart is a state-of-the-art control room crammed with technology that operates dummies capable of reproducing human functions of all kinds Advanced simulation is a major aid to maintaining the skills of emergency healthcare workers with a particular focus on pediatric and neonatal resuscitation
Health meetings
Designed as a space for community use the Center also aims to become a place where all sections of the population - workers schoolchildren parents teachers volunteers and even just members of the public - can learn about preventive health care and acquire first aid skills After the distribution to Florim employees of a questionnaire surveying their training needs and preferences a Center Scientific Committee of Sassuolo Hospital medical personnel was appointed and drew up a plan of bi-monthly ldquoHealth meetingsrdquo All meetings are led by doctors with expertise in the various topics who answer the many questions from the audience at the end of their talks Between its opening and the end of December 2016 the Center hosted 13 meetings on a variety of topics attended by about 1000 people including employees their family members and the community at large
Healthcare discounts for Florim employees
The project also includes a major welfare program for all Florim employees and their family members entitling them to discounts and shorter waiting times for specialist examinations and outpatient diagnostic tests performed on a private basis
American Heart Association
The world-famous American Heart Association (AHA) is the oldest and most respected American voluntary organization dedicated to the fight against cardiovascular diseases and strokes In 2015 the AHA via the Simaid International Training Center named the Florim HealthampTraining Center as an Authorized Training Site for basic and advanced cardiopulmonary resuscitation
Florim HealthampTraining Center
2016 Sustainability Report
Watch the Health amp Training Center video
2016 Sustainability Report32
Product Responsibility
Here we summarize the concept of Made in Florim denoting a product that encapsulates the companys core values passion innovation a constant commitment to improvement and corporate social responsibility
Florim product certifications
CE Marking guarantees the user that the materials purchased meet the requirements of the relevant regulations and that the characteristics concerned are virtually unchanged for all production lots It is a declaration of conformity which protects the consumerrsquos safety The presence of the CE Marking on packaging guarantees that Florim products comply with the relevant regulatory requirements
Ecolabel (EC Regulation 662010) is a certification granted to products which comply with ecological and performance criteria set at a European level concerning raw material extraction supplier selection manufacturing processes packaging distribution use and disposal The certified Florim collections are Architech Ecotech Reverse Walks 10 by Floor Gres and Pietra del Nord under the Rex brand
Several ceramic tile collections bearing the Florim brands have earned certification from Bureau Veritas for their pre-consumer recycled material content These articles are therefore fully eco-compatible and can meet the environmental sustainability requirements imposed by many international certifications
Florim is a member of the US Green Building Council (USGBC) the most important association which promotes the reduction of buildings negative impact on the environment To allow the effective monitoring a projects level of sustainability the USGBC has developed a certification procedure for the development of sustainable buildings which assess and certifies the sustainability of a building in its entirety Florim materials are able to help to gain LEED points in a number of areas (data available on the Florim brand websites)
Florim has achieved the prestigious Greenguard certification for all its products Issued by the American body UL Environment this certification aims to reduce indoor pollution caused by interior design systems and materials UL Environment thus aims to protect health by improving air quality and reducing peoples exposure to chemicals and other pollutants Florim has also achieved Greenguard Gold Certification which imposes even stricter limits to confirm that a given product is suitable for use even in locations such as schools and health care facilities
The EPD or Environmental Product Declaration is a document which defines the environmental impacts arising from production In 2016 Florim participated in the study - certified by the German organization IBU - performed on the ceramics industry average data which aims to raise international awareness of the excellence of the environmental standards achieved
Beyond the standardsMade in Florim products are a guarantee of safety highly innovative content and eco-friendliness The people who produce them work in a safe place and in ethically sustainable conditions Due to their nature all Florim products are guaranteed free from pollutant emissions do not accumulate electrostatic charges are frostproof and completely inert and are undamaged by contact with flames The Groups Internet sites and collection catalogues contain the technical data sheets which detail the product information (slip-resistance breaking strain abrasion resistance etc) for every collection as well as its recycled material content with the relative certificates
During the period under consideration no banned products were placed on the market and the company was not found guilty of any breaches of the law with regard to data protection or its marketing and communication activities
EU Ecolabel nr IT2104
2016 Sustainability Report 33
Quality SystemThe current ISO 9001 standards define quality as the ability to satisfy explicit or implicit needs via a product or a service A Quality System implies constant improvement of company processes in order to realise products that always satisfy the customerrsquos needs Further to the 2016 audit Florim obtained the renewal of its UNI EN ISO 90012015 certification for the design manufacture and sale of all categories of ceramic tile
Objective Indicator 2012 2013 2014 2015 2016
Continual improvement of control of the production process
Percentage of First Grade Product ()
924 943 942 952 956
Quality rate () 883 905 903 905 909
Scrap rate () 44 41 42 42 49
Productivity (sq mhour) 186 188 186 190 200
Improvements in sales performance and customer satisfaction
Innovation rate () 330 296 367 455 364
Coverage () 795 714 814 813 816
Total portfolio shippable within one month ()
911 837 888 893 897
Optimization of range and stocks
Obsolete stock () 172 126 165 120 69
Stock turnover rate () 13 15 16 15 16
Gradual elimination of disputes complaints and claims concerning service
Square meters affected by complaints ()
17 12 08 12 09
Complaints by number of order items ()
10 11 11 10 10
Gradual improvement in staff skill levels
Employee turnover () 15 23 04 04 12
KeyPercentage of first grade product percentage ratio between the square meters of first grade products and the total square meters transferred to stockQuality rate percentage ratio between the square meters of first grade product transferred to stock and the square meters leaving the pressesScrap rate percentage difference between square meters of material leaving the presses and square meters of product actually transferred to stockProductivity ratio between the square meters transferred to stock and the total hours worked in the plantInnovation rate ratio between square meters sold belonging to series designed in the last three years and total square meters sold Florim uses this indicator to assess the effectiveness of its design process in terms of salesCoverage percentage ratio between square meters available for immediate shipment and the square meters on orderTotal portfolio of orders shippable within one month percentage ratio between the square meters which can be shipped in 30 days and the square meters on orderObsolete stock percentage ratio between the square meters of substandard discontinued produce and the total square meters in stock Stock turnover rate ratio between the square meters sold and the square meters in stockSquare meters affected by complaints percentage ratio between the square meters affected by complaints and the square meters soldComplaints by number of order items percentage ratio between the number of complaints and the number of items orderedEmployee turnover percentage ratio between the number of employees leaving the company and being replaced and the workforce at the start of the year
2016 Sustainability Report34
Casamood - Neutra 60 Collection
2016 Sustainability Report 35
OUR COMMITMENTS
The promises we keptIn our last Sustainability Report we committed to achieving a large number of objectives the following are the outcomes we attained
Relaunch of the ldquoCEDIT ndash Ceramiche drsquoItaliardquo brand OBJECTIVE ACHIEVED
Launch of the FLORIM stone brand OBJECTIVE ACHIEVED
Installation of a new latest-generation kiln at the Mordano plant OBJECTIVE ACHIEVED
Transfer of the Moscow showroom to new premises SCHEDULED FOR 2017
Creation of a new gatehouse at the Mordano plantOBJECTIVE POSTPONED TO GIVE PRIORITY TO THE CONSTRUCTION OF THE NEW FACTORY
Introduction of ERP system at Florim USA OBJECTIVE ACHIEVED
Installation of a new spray dryer and raw material handling system at Florim USA
OBJECTIVE ACHIEVED
Economic Responsibility
Renewal of certification of the Florim environmental and energy management system
OBJECTIVE ACHIEVED
Award of new certifications for collections manufactured with a high recycled material content
OBJECTIVE ACHIEVED
Continuation of work to reduce environmental impacts at Mordano especially with the reduction of energy costs
OBJECTIVE ACHIEVED
Continuation of the work to remove asbestos cement roofing materials at the Mordano plant
OBJECTIVE ACHIEVED
Expansion of the system which conveys rainwater to the treatment plant OBJECTIVE ACHIEVED
Reduction of the noise emissions of the air filtering systems OBJECTIVE ACHIEVED
Increase of recycling targets through constant awareness-raising amongst all staff and optimisation of recycling facilities
OBJECTIVE ACHIEVED
Continuation of replacement of the diesel forklift trucks for use on outdoor yards with electric vehicles
OBJECTIVE ACHIEVED
Environmental Responsibility
Running of fourth edition of Master Florim course with new procedures OBJECTIVE ACHIEVED
Creation of an internal refreshment area for the Fiorano office staff OBJECTIVE ACHIEVED
Improvement of corporate welfare through the activation of new free services and discounts tailored to employees needs
OBJECTIVE ACHIEVED
Continuation of the health meetings for the local community in association with Ospedale di Sassuolo Spa
OBJECTIVE ACHIEVED
Organization of new community events at Florim Gallery OBJECTIVE ACHIEVED
Organization of Florim Family Day 2016 A PARTY WAS ORGANISED FOR EMPLOYEES
Social Responsibility
2016 Sustainability Report36
The targets we set for ourselvesWe aim to achieve the following objectives in 2017
Economic Responsibility
Construction of a new factory at Mordano to produce large slabs
Launch of the project to unite the Florim spa sales organizations
Total restyling of the corporate and brand Internet sites
Launch of the HUB project - Intranet CRM Marketing Automation
New plants at Florim USA a press two sorting lines a polishing and rectifying line
New working spaces and cloakrooms for technical staff at the American plant
Environmental Responsibility
Purchase of a new cogenerator for the Mordano plant
Introduction of a new rainwater collection system at Fiorano
Land reclamation project involving covering of the Rio Spezzano stream at Fiorano
Implementation of new software for continual monitoring of energy impacts at Fiorano
Modernisation of the compressor room to improve energy impacts at Mordano
Increase of recycling targets through constant awareness-raising amongst all staff and optimisation of recycling facilities
Continuation of replacement of the diesel forklift trucks for use on outdoor yards with electric vehicles
Social Responsibility
Improvement of corporate welfare through the activation of new free services and discounts tailored to employees needs
Continuation of the health meetings for the local community in association with Ospedale di Sassuolo Spa
Organization of new community events at Florim Gallery
Organization of a new event for Florim spa employees
New offices for hospitality and events staff at Fiorano
2016 Sustainability Report 37
FLORIM USA
Profile and Economic ResponsibilityFlorim USA with registered office at Clarksville - Tennessee - and its subsidiary Florim Solution Inc have been part of the Florim Group since 2000 The Florim USA manufacturing plant one of the largest most technologically advanced in the United States produces porcelain stoneware tiles for the residential market and undertakes commercial projects in North America During the last few years Florim USA has implemented a growth and process optimization strategy which has generated significant technological progress with more innovations planned for the future The strategy adopted will put Florim USA at the worldwide state of the art in porcelain stoneware tile manufacture
In 2016 of the 18 million USD invested 147 was allocated for installation of a latest-generation raw material handling system and a large spray-dryer with an innovative sorting system Improvements were made to other parts of the process to increase their efficiency leading to a further reduction in emissions and scrap rates Additional investments are planned during 2017 to continue this dual trend of rising production with mitigation of environmental impact
The new Florim Flagship Store in New York (152 Madison Avenue 32nd Street)
2016 Sustainability Report38
Environmental ResponsibilityFlorim USA implements the same environmental policy as Florim and is committed to achieving the following objectives
bull reduction of the energy used in the production processbull improvement of the waste management process with a focus on recovery and reusebull introduction of new more eco-efficient technologiesbull adoption of integrated management systems
Florim USA has been pursuing a strategy of careful management of its operations and environmental impact for a number of years Here we summarise the main actions taken and the results achieved in 2016
bull installation of a latest-generation spray-dryer in 2016bull installation of an innovative raw material handling system in 2016bull 100 recycling of wastewater within the processbull optimisation of the management of water bottles with elimination of about 34200 of them per annumbull reuse of almost all production scrap (+99)bull 157000 kg of cardboard recycled in 2016bull award of two different types of product certificationbull 9300 kg of plastic recycledbull recycling of 17 complete trucks of pallets
Environmental Projects and Awards
Florim USA has received Clarksville Montgomery County Green Certification (CMCGC) CMCGC is a program designed to help companies learn and implement best practices in the area of environmental stewardship to sustain the local communityrsquos resources through a series of free workshops taught by local environmental specialists Since 2014 Florim has allocated some of its Environment Managers time for the running of these workshopsFlorim USA earned this green company certification thanks to a large number of projects first and foremost the one which eliminated the use of disposable water bottles replaced with individual reusable bottles provided by the company and a series of fill-up stations About 34200 bottles are removed from the waste cycle every year
During the latest phase of its plant optimization Florim USA has implemented a thorough construction material reuse policy In the various stages of demolition of the old plants including the old storage silos the concrete debris was recovered and reused in other construction worksThis project alone generated 11500 tons of recycled aggregate as well as several hundred tonnes of metal sold to a recycling firm
Environmental management system and eco-compatible products
Florim USArsquos products help builders and designers to meet the requirements for sustainable buildings as defined by the United States Green Building Council (USGBC) through the LEED Green Building Rating System This protocol evaluates and certifies the environmental sustainability of a building as a unit from its design to its day to day management To gain LEED credits many of the Florim USA product lines contain a significant percentage of recycled material (40 or more)This feature contributes to an increase in the LEED score in the projects where these products are installed In 2014 Florim USA together with a large number of other US tile manufacturers and the Tile Council of North America drew up a type III environmental product declaration (EPD) certified under the ISO 14025 standard This ceramic tile life-cycle analysis enables Florim USA products to gain LEED points under the new LEED v4 protocol
2016 Sustainability Report 39
Water use (gallonsper million square feetof finished tiles)
208137 216246 204962 195280 194268
Energy use
2012 2013 2014 2015 2016
Cubic feet of natural gas per million square feet of finished tiles 9343383 9149721 8331170 8390503 8380000
kWh per million square feet of finished tiles 510972 491171 450594 465976 490300
Emissions
Particulate material lt 21024 tonnes per annum
SO2 (sulphur dioxide) lt 1674 tonnes per annum
VOC (volatile organic compounds) lt 1245 tonnes per annum
NOx (oxides of nitrogen) lt 1501 tonnes per annum
Environmental performance indicators ndash summary
The following are the main environmental indicators related to the impact and performance of Florim USA during 2016
Pre-consumer recycled material
Its internal material recycling processes enable the company to minimise its environmental impact since most of the material which would otherwise be sent to landfills or other waste treatment centers is reusedbull Wastewater is entirely recycled within the production process without any discharge into the municipal drainsbull The material in the collection bags from the tile body and glaze preparation areas the press and glaze application is entirely recycled within the processbull All scrap fired tiles are entirely recycled within the processbull 157000 kg of cardboard was sold to an external recycled material dealerbull 17 trucks of unusable wooden pallets were sold to a pallet regeneration companybull About 9300 kg of waste shrink-wrap plastic film was recovered and recycled
Post-consumer recycled material
About 82000 kg of glass was removed from the flow of waste destined for the local landfill and recycled within the process Florim USA has signed an agreement with the local landfill for consignment of all the glass it handles which is collected and set aside for recycling
Water use disposal and reuse
The water used during the production process is recycled continually therefore no water is discharged into the municipal drains
The 2016 emissions figures are in line with those for previous years well below the standards laid down
Water use 2012 2013 2014 2015 2016
Water use (gallons per million square feet of finished tiles) 216246 204962 195280 194268 203928
2016 Sustainability Report40
Social Responsibility
Employees
The Florim USA workforce comprises 348 staff employed at the production site the Clarksville and Nashville outlet stores and the Florim Solution offices Of the 348 employees 273 are blue-collar workers and 75 office staff 5 employees are Italians on secondment to the United States Florim USA offers a number of benefits to full time employeesbull health and dental care insurancebull Vision insurancebull life insurance for employees and optionally for family membersbull temporary and permanent disability supportbull employee pension plan
2012 2013 2014 2015 2016
Workplace injuries 50 41 22 29 27
The Employee Assistance Program (EAP) also offers support to employees and their families in the event of psychological difficulty or other problems that can have a negative impact on their quality of life Florim USA supports all the costs of the program
Equal opportunities
Florim USA provides equal opportunities in all employment practices to all qualified employees and applicants regardless of race colour religion gender national origin age disability or membership of the armed forces or any other category protected by federal state or local laws
Health and safety
FLORIM USA is committed to ensuring a safe healthy workplace for all employees It therefore replaces old and obsolete equipment with new technologically more modern machinery and updates safety plans as new information gradually becomes availableAs well as an internal supervisor Florim USA has also appointed a health and safety committee which constantly monitors the plans effectiveness and makes any changes requiredThere are currently 20 plant employees who hold CPRfirst aid qualifications They occupy a variety of positions and work different shifts within the plant and have volunteered to attend training courses sponsored by the company for the award of these qualifications
Training
In 2016 every Florim USA employee attended an average of about 25 hours of training The training provided covered the operating procedures for the new equipment the main safety plans and the procedures for use of existing equipment for new employeesAll new staff undergo specific training for their department focusing on the safety-related aspects of the department concerned as well as more generalized safety training
Some of these themes includebull safe correct use of forklift trucksbull training on work in confined spacesbull shutdownwarning procedures and safe electrical practicesbull safe lifting procedures
2016 Sustainability Report 41
Florim USA ndash (Clarksville Tennessee)
For employees wishing to continue their education Florim USA offers assistance through the Educational Assistance Program It provides aid with the cost of education and textbooks and is available for any employee wishing to study for a technical qualification a diploma or a degreeThe plant staff training and education plan also includes various training schemes at Florim Italy where employees are instructed in the use of new equipment before it is installed at the American plantThroughout 2016 Florim USA will continue to provide a free e-learning course on its website for architects engineers and contractors (AEC) to improve their knowledge of sustainable porcelain stoneware tiles
Employee welfare activities
Florim USA employee picnic - In 2016 the company once again held its annual picnic for employees offering them a wide variety of foods games activities and live shows in an event which provided an unforgettable days enjoyment Within the event participants received prizes in the form of vouchers and gifts
Employee anniversary dinner - 2016 again saw the usual dinner to honour Florim USA employees with 5 10 15 20 or more years of service A special evening event was held in the presence of the Chairman and the other managers to celebrate the loyalty and hard work these employees have contributed during their careers with the firm
2016 Sustainability Report42
Local Community
During 2016 Florim USA continued to provide its support to a number of projects in its local areaSome of the main projects include
Scholarships - As part of its work to support the local community Florim has an established scheme which awards scholarships to deserving students at the Austin Peay State University in memory of Florim Group founder Giovanni Lucchese In December 2016 a delegation of Florim representatives attended a scholarship presentation lunch at the Austin Peay State University hosted by the President of the University
Montgomery County Green Certification Program - Florim USA staff actively participate in the Montgomery County Green Certification Program which aims to help companies learn and implement best practices with regard to safeguarding the environment and environmental resources
Donations - In 2016 the company again made a large number of donationsbull book collection for the Austin Peay State University Employees made a generous donation of used books in good condition for children and young people of the APSU in the hope of further promoting the education of future generationsbull to Community Cares the national organization that promotes the acceptance and social inclusion of individuals with Downs Syndromebull to the Aspire Clarksville Foundation a 501(c)(3) charitable foundation whose mission is to continuously improve the economy and the livability (quality of life) of the community by attracting significant capital investment and expansion by businesses and corporations thereby creating better opportunities and higher paying jobs for residentsbull to the Alzheimerrsquos Association a non-profit voluntary organization dedicated to the care and support of Alzheimers Disease sufferers and research into the condition Its aim is to eliminate the disease through the advancement of research to provide and enhance care and support for all affected and to reduce the risk of dementia through the promotion of brain health
Other activities - Every year Florim USA participates in the United Way Drive initiative to support local non-profit organizations which provide economic assistance and psychological support to persons in difficulty
Florim USA provides regular support to the Salvation Army by collecting canned foods for persons in needIn 2016 the company again organised a canned food collection for Manna Cafeacute in Clarksville TN Manna Cafeacute is a local non-profit organization based in Middle Tennessee with the primary mission of meeting peoples fundamental need for food before encouraging them to permanently change their lives for the better More than 15 of the population in Montgomery County are affected by food insecurity (about 28000 people) The percentage of children affected is about 215 a third of whom are excluded by income from federal programs such as free school mealsFinally donations were made tobull American Lung Association the leading organization working to save lives by improving lung health and preventing lung disease through research and educationbull Cheer for a Cure an organization that gives money directly to afflicting families who have a loved one suffering from cancer and need assistance to alleviate the added financial stressbull Habitat for Humanity Since 1992 Habitat for Humanity in Montgomery County Tennessee has worked with 93 low-income families with more than 210 children to revitalise various parts of Clarksville-Montgomery County by building new homes
2016 Sustainability Report 43
Quality SystemFlorim USA works under a Quality System certified to UNI EN ISO 9001 standards The following are some of the figures in brief
Objective Indicator 2012 2013 2014 2015 2016
Optimisation of control of the production process
Percentage of First Grade Product ()
932 917 940 949 9510
Quality rate () 883 857 893 906 909
Scrap rate () 56 65 48 45 45
KeyPercentage of first grade product ratio between square feet of first grade material and total square feet transferred to stockQuality rate ratio between square feet of first grade material transferred to stock and square feet pressedScrap rate ratio between square feet pressed and square feet of product actually transferred to stock
Other ActivitiesFlorim USA and trade shows
In 2016 Florim USA participated at a number of shows and events including Coverings the AIA Tennessee Convention Hardscape North America Total Solutions Plus Neocon International Pool - Spa and Patio Expo These events targeted at the various categories of industry professionals such as dealers and designers gave Florim USA the opportunity to present its new range of indoor and outdoor products
Design Center
In December 2015 Florim USA opened a design center showroom in Nashville (TN) in a strategic location close to the airport and the city center With a spacious area to host individual CEU presentations and workshops this design center has the potential to be a major resource for local architects In 2016 it was also awarded the ldquoOutstanding Boothrdquo booth prize at the 33rd edition of the Annual Home Decorating and Remodeling Show The location is the ideal place for sharing ideas finding inspiration and putting professionals and architects in touch with each other
Florim Nashville Design Center
2016 Sustainability Report44
GRI International Sustainability Indicators SDGsThe information below illustrates the correspondence between the Florim (Italian companies) 2016 Sustainability Report the GRI-G4 guidelines and the icons of the Sustainable Development Goals (SDGs) definitively adopted by the United NationsA description of the SDGs is available at wwwglobalcompactnetworkorg
GRI indicators
Description Page Reference to SDGs
1 Strategy and Analysis
G4-1 Statement from the most senior decision-maker of the organization 5
2 Organization profile
G4-3 Name of the organization 2
G4-4 Primary brands products andor services 9
G4-5 Location of the organizations headquarters 9
G4-6 Number and names of the countries where the organization operates 9
G4-7 Nature of ownership and legal form 14
G4-8 Markets served 9
G4-9 Scale of the organization 8 8
G4-10 Significant changes regarding size structure or ownership 8
G4-11 Employees covered by National Collective Bargaining Agreement 27
G4-12 Describe the supply chain 16
G4-13Significant changes regarding the organizationrsquos size structure ownership or its supply chain
Reporting process
launched
G4-14 Precautionary principle 22
G4-15 List of external commitments in which the company is involved 22 32 33
G4-16 Associations or interest groups in which the company is involvedwwwflorimit gt
about us gt partnerships
3 Identified material aspects and boundaries
G4-18 Process used to define the report content 6
G4-19 Material aspects 16
G4-20 Boundaries of each material aspect 6
G4-21 Boundaries of each material aspect outside the organizationPartial reporting
(pages 6 16)
G4-22 Explanation of the effect of any restatements of information provided in previous reports 6
G4-23Significant changes from previous reporting periods in the scope boundaries or measurement methods
6
3 Stakeholder engagement
G4-24 List of stakeholders 15
G4-25 Identification of stakeholders 15
G4-26 Stakeholder engagement 6 16
G4-27 Key topics and concerns that have been raised through stakeholder engagement 16
4 Boundary of the Report
G4-28 Reporting period 6
G4-29 Date of publication 2
G4-30 Reporting cycle 6
G4-31 Contacts and addresses for additional information 46
5 GRI Content Index
G4-32 Reporting option chosen 6 7
G4-33 External assurance of ReportThe Report is not
externally assured
2016 Sustainability Report 45
GRI indicators
Description Page Reference to SDGs
6 Governance
G4-34 Governance structure 14
7 Ethics and integrity
G4-56 Values principles standards and norms of behavior 13 16
Economic performance indicators
EC1 Direct economic value generated and distributed 19 25789
EC5 Wages 27 158
EC7 Development and impact of infrastructure investments and services supported 23 24 31 257911
Environmental performance indicators
G4-EN2 Percentage of materials used that are recycled input materials 17 22 23 812
G4-EN3 Energy consumption within the organization 24 781213
G4-EN6 Reduction of energy consumption 17 24 71213
G4-EN7 Reductions in energy requirements of products and servicesPartial reporting
(page 22)71213
G4-EN8 Total water withdrawal by source 17 23 6
G4-EN10 Percentage and total volume of water recycled and reused 17 21 23 612
G4-EN11 Biodiversity 23 615
G4-EN15 Total indirect greenhouse gas emissions by weight 25 3121315
G4-EN16 Total indirect greenhouse gas emissions by weight 25 3121315
G4-EN19 Reduction of greenhouse gas emissions 8 24 1315
G4-EN21 NOx SOx and other significant air emissions 25 31215
G4-EN22 Total water discharge by quality and destination 23 6
G4-EN23 Total weight of waste by type 17 22 3612
G4-EN27 Impact mitigation of environmental impacts of products and services 23 68121315
G4-EN29 Monetary value of significant fines 22 16
G4-EN30 Significant environmental impacts of transporting products and goodsmaterialsPartial reporting
(page 25)111213
Social performance indicators
G4-LA1 Total number and rates of new employee hires and employee turnoverPartial reporting
(pages 17 27)8
G4-LA6 Workplace injury ratesPartial reporting
(page 17)38
G4-LA9 Average hours of training per year per employee 28 48
G4-LA12Composition of governance bodies and breakdown of employees according to gender age group etc
27 58
G4-LA13 Ratio of basic salary and total remuneration of women to men 27 5810
Society
G4-SO1 Operations with local community engagement 12 31 16
G4-SO3 Operations assessed for risks related to corruptionPartial reporting
(page 13)
Product responsibility
G4-PR1 Assessment of health and safety impacts for improvement 23 32
G4-PR3 Type of information about products and services required by the procedures 32 12
G4-PR5 Proceedings relating to customer satisfaction including surveys conducted to measure it 33
G4-PR6 Sale of banned or disputed products 32
G4-PR8 Number of substantiated complaints regarding breaches of privacy 32 16
2016 Sustainability Report46
Your Assessment
You are kindly requested to take a few minutes of your time to give us your assessment and any suggestions to enable us to improve future editions of our Sustainability Report
Click here to send us your feedback
To keep up to date with our business
Spazio CEDIT - interior (Milan)
wwwflorimiten
Florim Ceramiche
Florim4Architects
Florim_ceramiche
Florim Ceramiche spa
Florim Ceramiche
Florim Ceramiche
For any further information please feel free to contact our communications department comunicazioneflorimit
2016 Sustainability Report 47
Premio Lucchese - Florim Gallery (Fiorano Modenese - Modena Italy)
Intrapresaelig Guggenheim Collection - Massimo Bottura in Florim Gallery (Fiorano Modenese - Modena Italy)
Panathlon Christmas Gala - Florim Gallery (Fiorano Modenese - Modena Italy)
2016 Sustainability Report48
White Christmas Party - Florim Gallery (Fiorano Modenese - Modena Italy)
Cersaie - Mario Biondi in Florim Gallery (Fiorano Modenese - Modena Italy)
Dal buio alla luce - Social event at Florim Gallery (Fiorano Modenese - Modena Italy)
2016 Sustainability Report 49
Florim Gallery entrance (Fiorano Modenese - MO)
2016 Sustainability Report52
Florim Ceramiche spaVia Canaletto 24 - 41042 Fiorano Modenese (Modena Italy) - Tel +39 0536 840111 - wwwflorimit
2016 Sustainability Report 7
CEDIT - Storie Collection | Giorgia Zanellato amp Daniele BortottoNamed as Best of the Best at the 2017 Red Dot Design Award
2016 Sustainability Report8
Giovanni Lucchese pioneers the production of extruded clinker tiles and Floor Gres is founded in the heart of the Sassuolo production district
Floor Gres is the first Italian manufacturer to produce single-fired white body tiles
The Swimming Pool Division is established within Floor Gres
Floor Gres is one of the first companies in the world to start the manufacture of porcelain stoneware tiles
Claudio Lucchese son of the founder takes over the reins at Floor Gres after his fathers untimely death
Floor Gres acquires Cerim Ceramiche
Floor Gres and Cerim merge to create Florim
Florim acquires Rex Ceramiche Artistiche
The Project Division forerunner of todays Florim Solutions is created
Incorporation of Florim USA a production and distribution company destined to become a leader on the American market
Florim acquires Casa dolce casa
The Casamood brand is born
A logistics hub is opened in Brazil
The new multifunctional Florim Gallery is opened and the Florim Logistics area is completed at the Florim headquarters The Fondazione Ing Giovanni Lucchese foundation is established
The first Flagship Store is opened in Moscow
The Milan Flagship Store moves to a location in the very heart of the city A new Flagship Store opens in the center of New York
Florim relaunches the historic CEDIT - Ceramiche drsquoItalia brand (which opens its first flagship space in Milan) and FLORIM stone the Groups first brand focusing on the interior design sector
MADE IN FLORIM
Over 50 years of history
Over 1300 employees worldwide
27 million square meters produced every year
406 million Euro turnover
1424 tons of CO2 not emitted in 2015 thanks to the photovoltaic system
It takes more than figures to define a company Today passion innovation a constant commitment to improvement and corporate social responsibility are the core values of a new way of doing businessthe MADE IN FLORIM way
Our History 1962
1967
1976
1981
1984
1990
1992
1994
1995
2000
2005
2006
2011
2013
2014
2015
2016
Watch the Floriminstitutional video
2016 Sustainability Report 9
Our Locations The map shows the grouprsquos headquarters showrooms production plants and logistic hubsFlorim brand products are available from top international customers and importers
Our Brands
Floor Gres is the brand specifically for innovative architectural projects The Floor Gres product range meets all the many and varied needs of contemporary architecture in terms of design and technical capabilities and environmental standards
Rex is the brand which denotes stylistic excellence with products inspired by precious natural materials (wood marble and stone) coordinated floor and wall coverings in which the surfaces interact to generate a new language in home design
Cerim is the brand that focuses primarily on color and on decoration Coverings designed on an integral basis to make the most of all parts of the home and offer solutions that adapt to the most diverse interior design contexts
Casa dolce casa and Casamood is the brand intended for high-end architecture and interior design and offers attractively blended colours and surfaces drawn from nature for the creation of warm interiors A range of matching colours and surfaces that combines porcelain stoneware with other types of materials Architectural design effects are blended with the language of interior decoration to create new types of relationships
CEDIT - Ceramiche drsquoItalia embodies the dialogue between art craftsmanship and technology The brand that shapes ceramic matter in the service of creativity allowing leading names of our time to express themselves to their full potential Large designer slabs that renew the concept of architectural space
FLORIM stone is the brand that combines performance and practicality with the utmost personalization of spaces Large porcelain stoneware slabs at the service of interior design professionals delivering creative flexibility with outstanding technical performances and appearance values
Florim USA is the brand of the American subsidiary its porcelain stoneware tiles for residential and commercial use manufactured in the plant at Clarksville (Tennessee) are tailored to suit the tastes of the largest possible segment of the North American market
FLORIM USASite production plant and logistics hubClarksville TN (USA)
Flagship StoreNew York NY (USA)
Logistics hubParanagrave (BRAZIL)
OceSingapore (SINGAPORE)
Flagship StoreMoscow (RUSSIA)
Site production plant and logistics hubFiorano Modenese (Modena ITALY)Production plantMordano (Bologna ITALY)
- Flagship Store- Spazio CEDITMilan (ITALY)
2016 Sustainability Report10
Our Design ServiceAs well as the product itself Florim offers a unique level of technical support throughout the various design phases From the feasibility study to the final installation Florim Solutions works side by side with the architect providing skills and experience whenever the style and performance of porcelain tiles become fundamental to the project In the age of speed and the digital revolution the company has also created an integrated web platform to give its professional partners unbeatable service Exclusive events visibility for projects free training meetings and specific competitions are just some of the services offered by Florim4Architectscom
Expo Azerbajan Pavilion winner of the Florim4Architects ldquoProject of the Yearrdquo competition
2016 Sustainability Report 11
Our 2016In this section we focus on the latest news from the Group covering a wide variety of aspects but all confirming the importance of Florims large slabs and once again underlining the centrality of innovation for the companys business
New brands
In April Florim chose the Salone Internazionale del Mobile a major event for the global design community for the relaunch of the CEDIT - Ceramiche drsquoItalia brand The brand which has always had links with leading artists designers and architects has achieved a superlative creative standard over more than fifty years of experimentation with materials and stylistic research in ceramic design CEDIT is returning to the forefront of Italian manufacturing in partnership with some of contemporary Italys top creative names Its new identity is a fine blend of Craftsmanship and Innovation expressed on the large slabs produced by Florim technology December saw the official opening - in the heart of Milan - of the first Spazio CEDIT the tangible expression of an innovative display concept created to convey the brands philosophy to the world
The brand created to explore new application solutions reaching beyond the conventional construction concept is called FLORIM stone Launched at Cersaie - the biggest ceramics industry show - this brand combines the outstanding performances of porcelain stoneware with the utmost personalisation of spaces The dimensional and functional plus factors of latest-generation large slabs allow stoneware to be used in a versatile customized way not just as a wall and floor covering but also for tops and furnishings (tables kitchen worktops and bathroom counters doors and fireplaces are just some of the possible applications)
New look
A busy year partly due to the refurbishment of the Fiorano Modenese headquarters As well as the new gatehouse the faccedilade of the office building was also restyled bringing it up to date with an all-white lookAn innovative modification at the technological state of the art was made to the raw material shed with a ventilated faccedilade of almost 1900 msup2 of Magnum Oversize large slabs The installation reproduces the ldquoArcheologierdquo collection (designed by artist Franco Guerzoni for CEDIT) and the lake of Vernago in Italys Alto Adige region (photo by Vanni Borghi) A latest-generation project leading the way in technology safety and maintenanceLast but not least a new barrier was also designed and constructed to separate the Florim property from the SFrancesco road It took 3 months to erect a boundary fence of about 340 meters of double-sided porcelain stoneware slabs 180 cm high and 265 cm wide supported by a steel frame With a total of 1122 slabs the fence was designed to withstand weather earthquakes and the forces generated by traffic passing at high speeds Installed at different angles the slabs create attractive effects with light and shade demonstrating the importance of sophisticated aesthetics to the companys identity
New Awards
Florims large slabs are the featured products in the various awards received and have been assigned one of the most important accolades in the design world with an Honourable Mention at the XXIV edition of the ADI Compasso drsquoOro awards
Just a few months after its launch the CEDIT brand also received major awards at the global level the NYCxDESIGN Award in New York the Hospitality Design Awards in New York ldquo100 Best of 2016rdquo at the Archiproducts Design Awards 2016 and the Best of the Best (April 2017) in the Design Product category at the coveted German Red Dot Design Award
More recognition came from the Emilia-Romagna Regions 2016 awards for Corporate Social Responsibility projects run in the local community A prize in the ldquoBusiness and Educationrdquo category was assigned to the Master in Florim project which aims to give young people the skills required for sustainable development
Learn moreabout CEDIT
Learn moreabout FLORIM stone
2016 Sustainability Report12
In the age of digital transformation Florim still believes in the importance of creating opportunities for meeting and exchanging ideas and in 2016 more than 12000 people came to the Florim Gallery (a multi-purpose space of 9000 msup2 at the Fiorano headquarters) Events of social usefulness workshops community projects and business occasions our training events and hospitality staff were busy on many different fronts It was also a major year for off-site events The Florim Flagship Store in Milan and the just-opened New York Flagship Store hosted more than 3200 people at events for architects and designers supported with important partnerships with POLIdesign and leading publishersFlorim also chose the world-famous Peggy Guggenheim Collection in Venice as the location for two exclusive events to highlight the partnership agreement signed with Guggenheim Intrapresaelig A dinner in the wonderful setting of the museums panoramic terrace followed speeches by distinguished guests Ettore Mocchetti Martino Gamper Domitilla Dardi Giorgia Zanellato Daniele Bortotto Franco Guerzoni and Benedetto Fasciana The final event of the year was held for the employees with a ldquoWhite Christmas Partyrdquo evening at a Florim Gallery decorated for the festive season
A year of Florim events
LrsquoArte del Design - Florim event at the Peggy Guggenheim Collection (Venice)
2016 Sustainability Report
View the Florim eventat the Guggenheim
2016 Sustainability Report 13
GOVERNANCE
Code of EthicsThe groups governance plays a central role in the responsible development of its business ensuring ethical transparent management of its operations with its stakeholders interests always in mind
After approving the Governance Model compliant with the provisions of Italian Legislative Decree 2312001 the Florim Board of Directors signed and promoted the corporate Code of Ethics (revised in June 2016) which has become an integral part of Florims business and is accepted by every new employee supplier and agentTo guarantee the application of and compliance with its contents a Supervisory Board was established to detect any breaches of its provisions All stakeholders can also contact the Supervisory Board (organismodivigilanzaflorimit) for further explanations regarding the interpretation and application of the corporate Code of Ethics as described on the corporate websiteThe following is an extract from the rules of conduct which govern the way we do business
Our mission
To manufacture ceramic tiles and materials for multiple uses and offer the most appropriate solutions for both interior design and architecture To constantly prioritise environmental sustainability attempting to satisfy the needs of customers and to create value for shareholders employees and the local community in compliance with the ethical principles and rules of conduct set out in the Code of Ethics
Our vision
To be at the cutting edge of technical and design innovation in ceramics by developing materials and production methods that position us as a constant benchmark for customers architects and competitors
Our values
Honesty and Respect all internal and external relationships must be based on honesty and respect for rules and dignity of the individual
Corporate Social Responsibility corporate social responsibility must be promoted through measures and practices adopted to support the local environment and community
Individual Responsibility everyone must be aware of the worth and consequences of their own actions
Quality and Innovation excellence must be pursued by improving products processes and skills to promote corporate success
Transparency intentions and positions must be expressed openly and clearly without misunderstandings or misrepresentation to build lasting relationships based on trust both inside and outside the company
Courage a moral strength which enables us to undertake and deal with changes difficulties and challenges to benefit from all the opportunities they offer
Feeling of Belonging feeling proud to be a part of one big team made up of the company associates customers and suppliers
Management System Policy
To achieve greater and greater transparency in its reporting the company has drawn up guidelines for its quality environment safety and energy management system Read more
2016 Sustainability Report14
Corporate BodiesFlorim Ceramiche spa is a family-run business with fully subscribed paid-up share capital consisting of 50000000 ordinary shares with a face value of 1 Euro each The capital is 100 owned by the holding company FinFloor spa with registered office in Fiorano Modenese which is in turn indirectly owned by the Lucchese family through Fin-Twin spa
The Board of Directors has 11 members
CLAUDIO LUCCHESE Chairman
DONATO BRUNI Deputy Chairman
MARIADELE LUCCHESE Director
ANNA LUCCHESE Director
FRANCESCA LUCCHESE Director
GIOVANNI LUCCHESE Director
The Board of Directors has a mandate of one year and new elections will coincide with the approval of the financial statements The Board of Statutory Auditors is composed of three members whose term of office is three years from their appointment on 1252016 until approval of the 2018 financial statements The financial statements of Florim spa and the consolidated financial statements of FinFloor spa and Fin-Twin spa are audited and certified by Deloitte spa
Corporate StructureThe changes to be noted since the previous financial statements include the incorporation of ldquoMordano 4 srlrdquo and amalgamation by acquisition of Maker srl in Florim Ceramiche spa
KRONOS 2 CERAMICHE spaShare capital euro 1646799
Fondazione Ing G LuccheseEndowment euro 60000
FABBRICA delle MATERIE srlShare capital euro 10000
EDIL FLOOR surlShare capital euro 9812681
ISABELLA srlShare capital euro 100000
FI HOLDING IncShare capital USD 50000
100
10
100
30
9667
100
1
1
99
99
100
FIN TWIN spaShare capital euro 540800
FINFLOOR spaShare capital euro 10500000
542810
FLORIM CERAMICHE spasingle shareholder companyShare capital euro 50000000
100
FLORIM BRASIL LtdaDISTRIBUICcedilAtildeO DE CERAcircMICAS Ltda
Share capital R$ 46100000
FLORIM RUSShare Capital 100000 Roubles
FLORIM USA incShare capital USD 51865541
FLORIM SOLUTION IncShare capital USD 845943
100
MORDANO 4 srlShare capital euro 100000
85
FLORIM FAR EAST PTE LtdShare capital S$ 10000
100
ERMES GIUSEPPE FERRARI Managing Director
GIOVANNI GROSSI Managing Director
OSCAR ISEPPI Managing Director
DORVAN SAZZI Managing Director
STEFANO TORRENTI Managing Director
2016 Sustainability Report 15
StakeholdersStakeholders are all individuals and groups who may influence or be influenced by a companys operations in terms of policies products and working processes shareholders employees customers and consumers suppliers local government the local community banks and trade unions
Employees and Trade Unions
Florim makes the following commitments to its employees
bull to guarantee equal opportunities fair pay and professional growth
bull to reward its human resources on the basis of transparent meritocratic criteria
bull to create safe working environments and processes
bull to guarantee transparency and clarity in contract conditions
bull to encourage dialogue and internal communications
Customers and Consumers
In dealing with its (retail) customers Florim is committed to
bull creating a relationship of trust as a stable basis for business
bull guaranteeing clarity in contracts and prices
bull guaranteeing the reliability of its products and developing customer service
bull offering innovative safe environmentally sustainable products
bull providing a diversified offering with services with high value added
The overall aim is also to satisfy the expectations and demands of the final consumer
Developers Architects and Interior Designers
To meet the needs of developers Florim is committed to
bull offering state-of-the-art solutions in terms of environmentally sustainability technology and design
bull establishing and fostering relationships with partner professionals
bull providing consulting and technical experience from the project concept through to installation
bull supplying turnkey solutions
Local Communities and Local Government
In its relationships with local communities and local institutions Florim is committed to
bull guaranteeing dialogue cooperation and transparency
bull giving value back to the local communities in the areas where it operates
bull continually improving the environmental performances of processes
bull researching developing and using the most sustainable technologies
bull making an economic contribution to local sporting and social projects for children and young people
Suppliers
When selecting its suppliers Florim pays close attention to companiesrsquo CSR practices Florims relationships with its suppliers are based on compliance with the values of its code of ethics otherwise contracts are automatically terminated Florim also guarantees certainty in payment times and compliance with contract terms provided the goods and services contracted are delivered as agreed
ERMES GIUSEPPE FERRARI Managing Director
GIOVANNI GROSSI Managing Director
OSCAR ISEPPI Managing Director
DORVAN SAZZI Managing Director
STEFANO TORRENTI Managing Director
2016 Sustainability Report16
Materiality ApproachIn 2015 the company began an internal analysis process based on the materiality principle in order to identify the sustainability issues of relevance both for the Group (including Florim USA) and for all stakeholders Materiality is the threshold above which a topic becomes sufficiently important to be included in the report In fact organizations are faced with a large number of topics on which they could report Relevant topics and indicators are those considered important for reflecting the organizations economic environmental and social impacts or which influence the decisions of its stakeholder and which therefore potentially merit inclusion in the report In accordance with the GRI ndash G4 Guidelines Florim has analyzed and identified relevant topics which were assessed by the working team which drafted the Sustainability Report on the basis of discussion with the main stakeholders The findings which emerged were supported by a qualitative survey external to the companys context examining an analysis of the press gallery (more than 650 articles) competitors Sustainability Reports the Emas Study of the Fiorano and Sassuolo Ceramics District and the GRI document ndash ldquoSustainability Topics for Sector What do Stakeholders want to knowrdquo
In the chart below the aspects found to be most important appear in the top right-hand corner and constitute a strategic priority for the Group The topics in the bottom left-hand corner such as biodiversity prevention of corruption and absence of discrimination are less relevant because they are easy for both the organization and stakeholders to manage and no problems have ever been reported over the years Similarly the protection of human rights is now taken for granted since Florim complies strictly with all the provisions of the National Employment Contract
Importance for stakeholders
Importance for Florim spa
low
m
ediu
m
high
low medium high
Biodiversity
Indirect economic impacts
Prevention of corruption
Market share
Absence of discrimination
Sustainable transport
management
Protection of Human Rights
Environment and safety
Water saving
Energy efficiencyRaw materials
Diversity and equal opportunities
Transparency of financial and other
information
Ethical supplier
management
Investments in the local community and social welfare
Direct and indirect environmental
impacts
Green products and
services
Economic performance
Quality of products offered to customers
Regulatory compliance
Development of human resources
and training
ENVIRONMENT
COMMUNITY
EMPLOYEESASSOCIATES
ECONOMIC PERFORMANCE
PRODUCT RESPONSIBILITY
HUMAN RIGHTS
2016 Sustainability Report 17
FinFloor consolidated (in thousands of Euro) 2012 2013 2014 2015 2016
Net earnings 315344 325853 329533 374094 406759
EBIDTA 59608 72986 84395 98115 107186
Operating result 35717 50996 58508 66255 71028
Gross cash flow 52710 68312 83274 97268 109148
Net profit 26103 35732 36433 43324 49347
Net financial indebtedness (127730) (96500) (54524) (27326) (12508)
Final inventory 95514 84432 90283 92795 96721
Net shareholders equity 186905 218847 276916 332721 369937
Total investments 32572 48780 41584 34215 53531
2012 2013 2014 2015 2016
Waste produced (t) 30228 21170 22300 30862 34423
Recycled third-party waste (t) 4028 4190 1721 2570 5627
Total water consumption (msup3) finished product (t) 075 075 078 069 071
Recycled water percentage 100 100 100 100 100
Self-generated energy in relation to consumption 67 68 62 65 75
Investments in environmental management (euro000) 13617 2493 1995 465 6400
2012 2013 2014 2015 2016
Number of employees at 3112 1037 992 984 982 987
Total number of training hours 14690 9124 9056 7176 10606
Number of training hours on environment and safety 7572 4514 4200 3008 2489
Number of workplace injuries 63 62 74 56 43
Environmental and social profile figures refer to Florim Italy for Florim USA please see the relevant section (from page 37)
REPORTING
In brief
Economic Profile
Environmental Profile
Social Profile
2016 Sustainability Report18
Economic Responsibility
Comments on 2016 Economic Data
The Groups 2016 results were again good from every point of view
Compared to the previous year turnover increased by 87 leading thanks to careful management of production costs to an EBITDA of Euro 1071 million equivalent to 263 of turnover and a profit after tax of Euro 493 million
The companys financial data also significantly improved with a net financial position of Euro 125 million compared to Euro 273 million at the end of 2015 in spite of record technical investments of Euro 535 million and financial investments of Euro 11 million
Once again underlying the results achieved were large investments in latest-generation machinery and technologies painstaking research to develop materials with exceptionally high technical and design content human resources and projects for the increasingly direct promotion of Florims image and quality standard
Investments
The technical investments made in 2016 amount to Euro 535 million while Euro 11 million was spent on reacquiring 100 ownership of Maker srl followed by its amalgamation with Florim spa on 31 December The most important industrial projects included the continuation of the work on the Mordano plant which involved investments of Euro 26 million for the restructuring of the raw material preparation area and the doubling of production capacity for traditional porcelain stonewareThe investments of US$ 18 million at Florim USA were utilised to complete the renewal of the raw material preparation area and construct a new building for the technical organizationFinally about 9 million Euro was invested at Fiorano on various production line modernization projects
A creative hub for design style and new trends Milan once again confirms that it is the ideal setting for Florims investments and the opening of the all-new ldquoSpazio CEDITrdquo confirms the companys determination to strengthen its bonds with design professionals working in high-end interior design The culture of beauty art architecture and design are all integral to the genetic make-up of CEDIT ndash the historic Italian brand relaunched by Florim in 2016 ndash and dominate the display areas and the first six ceramic covering collections styled by famous names on the contemporary creative sceneOn two levels with a total floor area of more than 200 msup2 the space maintains the same stylistic identity as the one at Fiorano Modenese since they are both constructed to an architectural design intended to be replicated in CEDIT customers showrooms worldwide
Spazio CEDIT Watch theinauguration video
2016 Sustainability Report 19
Economic Value Generated and Distributed
The figures for the economic value generated and distributed provide a simple clear explanation of how Florim has created wealth and redistributed it to its stakeholders The table below contains the data from Florims 2016 financial statements approved by the Board of Directors on 30 March and certified by external auditorsThe economic value directly generated is represented by the total earnings for 2016 while the economic value distributed includes the costs incurred for suppliers and employees payments to the state (taxes) and the donations which had positive repercussions for the community to which Florim spa belongs
Heading 2014 2015 2016
Revenues 253125 269855 302521
Direct economic value generated 253125 269855 302521
Operating costs 135735 150951 168809
Employee wages and benefits 56985 58149 62418
Payments to providers of capital 7413 6399 11903
Payments to government 15738 13162 15382
Community investments 221 212 240
Economic value distributed 216092 228873 258752
Economic value retained 37033 40982 43769
KeyRevenues net sales plus revenues from financial investments and sale of assetsOperating Costs payments to suppliers non-strategic investments royalties payment facilitationsEmployee wages and benefits employee wages and benefits per employees (current payments)Payments to providers of capital all payments to the organizations providers of capitalPayments to government gross taxes and dutiesCommunity investments voluntary donations and investments in the communityEconomic value retained calculated as economic value generated less economic value distributed
The data in the table are in thousands of Euro and refer to the consolidated financial statements of the Italian companies only
KBIS (USA) - detail of the stand created with ldquoI Classici di Rexrdquo
2016 Sustainability Report20
Casa dolce casa ndash Argille 20 Collection
2016 Sustainability Report 21
Environmental ResponsibilityEffective environmental policy management energy saving and emissions reduction are amongst Florims strategic sustainability objectives
Our green projects in figures
2 highly-regarded process certifications
ISO 14001 (ENVIRONMENT)and ISO 50001 (ENERGY)
849873 MWh is the amount of electricity the
company succeeded in producing in-house during 2016
2 departments (marketing and communications)
engaged on digitizing advertising tools
8462 tons of CO2 NOT emitted
CO2
100 is the percentage of wastewater recycled
16000 msup2of photovoltaic panels covering
an area of 30000 msup2
75 is the percentage of the electricity consumed which is
produced in-house
4 latest-generation industrial kilns installed in
the last 3 years
4 different types of environmental product
certification
2 cogeneration plants to increase energy saving
and efficiency
1 laboratory for the development of contemporary design projects with a specific focus on the materials green
content
100is the percentage recycling of
industrial greenware waste in the production process
2016 Sustainability Report22
Certifications
System and process certifications
UNI EN ISO 14001TUumlV has awarded Florim the highly-regarded UNI EN ISO 14001 voluntary certification which confirms its compliance with a series of internally certified procedures intended to improve the internal environmental management system The decision to seek this certification springs from the desire to reconcile quality with efficiency and productivity while protecting the environment and community in which the company operates
UNI EN ISO 50001Thanks to a careful energy management policy and aided by the latest investments in the production area also intended to improve energy efficiency Florim was the worlds first ceramics manufacturer to obtain ISO 50001 certification of its Energy Management System
In addition to its environmental certifications Florim has also been awarded prestigious AEO (Authorized Economic Operator) status
Further to a lengthy and demanding audit process by the Customs Authorities in 2016 Florim was awarded AEO certification the first company in the Province of Modena to receive this major form of approval Authorised Economic Operator status guarantees the companys absolute compliance with customs and security requirements in its foreign trade
Environmental Management
Waste 2012 2013 2014 2015 2016
Total waste produced (t) 30228 21170 22300 30862 34423
Non-dangerous recyclable waste (such as paper and cardboard fired scraps plastic glass and wood) ()
989 982 985 991 989
Non-dangerous disposed-of waste (such as the waste picked up by the motor sweepers) ()
02 04 02 02 02
Dangerous recyclable waste (such as spent oil batteries and monitors) ()
00 01 01 01 00
Dangerous disposed-of waste (such as spent lime) () 01 13 12 07 09
Third-party waste recycled within the production process (t) () 4028 4190 1721 2570 5627
Besides recycling greenware waste from its own production cycle (not included in the table because the amount cannot be calculated) Florim also recycles third party waste
Florims operations have always been oriented towards optimization of impact on the local community and environment Thanks to the work of its research laboratories the support of all staff and the recent investment plans tangible results have been achieved The data provided below reveal that in spite of an increase in production of 8 compared to the previous year consumption remains low The companys commitment to environmental protection is all-inclusive and also comprises a focus on the district within which it operates One example is the total removal of all asbestos cement from the Fiorano Modenese plant and the creation of the new recycling station opened in 2015 and donated to the Local Authority as a public serviceAs in previous years during 2016 Florim was not fined for any breaches of environmental regulations or laws
Florim recycles and optimises within the production process all greenware scraps dust residues from filters and sludge from the process and rectification wastewater treatment system The waste produced is detailed in the table the significant differences between years are due mainly to the major demolition and subsequent reconstruction works undertaken at the Italian plants
Waste Management
2016 Sustainability Report 23
Water Resources
No environmental impact of wastewater discharges is specified since all the water from the production cycle is completely reused (100) All other effluents comply with legal requirements
The figure states the total cubic meters of water used per ton of finished product The water used in the Fiorano production process is drawn from private company-owned wells with water from the public main only used for non-industrial purposes The Mordano plant is supplied by an industrial water main Water use is measured by means of meter readings Four highly innovative dry rectifying plants have gone into production at Mordano since 2015 enabling the company to eliminate the physicalchemical treatment of the water used in the rectification process
WATER USE
2012
08
2013
08
2014
08
2015
07Total water consumption (msup3) finished product (t)
07
2016
All packaging used for Florim materials is made from recycled paper and parts of the coverings used to protect pallets of finished products consist of recycled plastic Whats more all the packaging used (boxes cardboard shrink wraps pallets etc) can be completely recycled by the end user The latest investments made include new eco-friendly packaging machines increasing the number of these machines installed to 15 These plants completely eliminate waste due to leftover inventory saving significant amounts of cardboard
Packaging and Coverings
As the materiality assessment states Florim has no significant impacts on the biodiversity of its local area since the company is located inside the Fiorano Modenese ceramics manufacturing district at least 5 Km from the nearest nature reserve at Salse di Nirano Florim takes special care over the choice of the raw materials used for its tile body mixes of which it is required to provide documentation guaranteeing compliance with the European Directives protecting wild birds (EU Dir 79409EEC) and habitats (EU Dir 9243EEC) and the United Nations Convention on the protection of biodiversity It has also introduced a software program - used at the 3 production plants (Italy and the USA) - for the management of data on the origin of raw materials such as quarry location distance from the factory recycled content declaration technical safety and radioactive content data sheets and the expiry of the quarrying permit issued by the government
Raw Materials and Biodiversity
2016 Sustainability Report24
Energy Management
There is no disputing that large amounts of energy are required to power the production processes of ceramic tile plants with consequent direct and indirect impacts on the local area and the environmentThe main indicator used to measure plants energy performance is the mean specific total energy consumption (TEJ) measured in GJt of product transferred to stock As the table below shows this figure is obtained by adding together heat consumption (NGJ) and electricity used (EEJ)
Parameter ndash Definition Unit of measurement
2012 2013 2014 2015 2016
NGJ Mean specific natural gas consumption in relation to the unit of weight of finished product transferred to stock
GJt 557 571 576 578 598
EEJ Mean specific electricity consumption in relation to the unit of weight of product transferred to stock
GJt 111 108 111 108 107
TEJ Mean total specific energy consumption in relation to the unit of weight of product transferred to stock
GJt 668 679 686 685 705
Self-generated electricity as a proportion of consumption
67 68 62 65 75
With two cogeneration plants (for the combined in-house production of heat and electricity) and 16000 msup2 of photovoltaic panels the company certainly sets a new benchmark for the entire ceramic tile industry 2016 saw the replacement of the Fiorano turbine set (the main component of the cogeneration plant) while the one in Mordano was kept in operation 247 factors which led to a 10 increase in in-house electricity production in relation to consumption To provide a clearer idea of the scale of the achievement the amount of electricity the company generated in-house in 2016 (849873 MWh) would cover the average annual consumption of about 37000 households (With consumption per household of 229 MWh - data from the latest ISTAT survey in 2012ndash calculated on the Italian average)
Photovoltaic Plant
kWp kWh produced kg of CO2 not emitted
270021 15937250 8462680
Good Practice
The head office organizations are also optimizing paper and energy consumption In addition to issuing and distributing the energy saving handbook for its offices the company is also trying to maximize savings on the raw material used and specifically the use of paper Internally the company only purchases reams of paper which carry environmental certification and the paper used in offices is collected separately for proper disposal Externally the company distributes a system of merchandising products made mainly from recycled paper and encourages the gradual digitization of its marketing tools as well as publishing all its catalogues in digital format on its Internet sites Florim offers its distributor companies an innovative digital touch screen tool with the pdf versions of the catalogues and other tools for the final consumerIn 2016 Florim decided to adopt a new payslip distribution procedure introducing an online processing system As well as providing employees with new functions and greater operating flexibility thanks to this system the company no longer prints out the monthly payslips saving paper ink and energy The scheme initially involving all office workers has the ambitious target of also including the staff of the Fiorano and Mordano plants
The 16000 square meter photovoltaic plant received recognition from GSE (Energy Management Services) as one of the most innovative installations of its type and from its commissioning (October 2011) up to December 2016 it produced the following results
2016 Sustainability Report 25
Atmospheric Emissions
The industrial facility emits greenhouse gases basically CO2 from the following main sourcesbull combustion from the burning of fossil fuels (such as natural gas)bull processes from the minerals in the raw materials any organic matter in the clays used and any organic additives in tile body mixes
In order to comply with Directive 200387EC (ETS - Emission Trading Scheme) Florim has been reporting and certifying its CO2 emissions since 2013
CO2 emissions 2013 2014 2015 2016
CO2 emissions (t) 102728 103462 111862 132960
CO2 emissions (t) Finished product (t) 033 033 033 035
Emissions from the production cycle 2013 2014 2015 2016
Particulate material (gmsup2 finished product) 223 130 098 118
Lead (gmsup2 finished product) 000 000 000 000
Fluorine (gmsup2 finished product) 014 018 013 012
The increase in CO2 is due mainly to the large increase in the square meters produced (+ 8) and the 247 use of the cogeneration plant However it should be noted that the cogeneration plant provided a 10 increase in in-house electricity generation with lower CO2 emissions than electricity purchased from the grid produced mainly using fossil fuels (source ISPRA Fattori di emissione atmosferica di CO2 e sviluppo delle fonti rinnovabili nel settore elettrico Rapporti [Atmospheric CO2 Emission Factors and Development of Renewables in the Electricity Sector Reports] 2122015)The ratio between CO2 emissions and tons of finished product produced increased because in 2016 the sale of spray-dried material to other companies rose compared to the previous year (emissions from this phase are included in the emissions count but there is no corresponding output of finished product)
In a change from previous years the new GRI-G4 guidelines also require reporting of nitrogen oxide and sulphur oxide emissions Nitrogen oxide (NOx) emissions are within the limits permitted under the integrated environmental authorisation Sulphur oxide (SOx) emissions are not reported here since this figure is not required by the IEA
Transport
The materiality study reveals that transport is a significant factor for both stakeholders and Florim itself The company is not able to measure the impact of transportation of finished product on the local area since all shipments are ex-works However Florim which has been introducing electric vehicles to replace its oldest most obsolete unleaded petrol forklifts for years now has further optimized the handling of materials thanks to the new highly-automated logistics hub created at the via Canaletto location In 2016 about 53 of the vehicles used on the companys premises were electric with no direct greenhouse gas emissions
2016 Sustainability Report26
CEDIT ndash Creative Composition
2016 Sustainability Report 27
Workforce Composition
In 2016 the workforce included 27 people with disabilities 6 women and 21 menBearing in mind the job descriptions arising from the specific industrial sector the breakdown between men and women is in line with the industry average Male office workers and executives earn an average of 10 more than women for jobs of equal responsibility Among blue-collar workers the difference is 7 The company had a total of 29 foreign employees 24 at Fiorano and 5 at Mordano
Manager Executive Office worker
2013 2014 2015 2016 2013 2014 2015 2016 2013 2014 2015 2016
Women 2 3 3 3 3 1 1 1 137 142 133 149
Men 18 21 20 18 21 24 25 28 127 132 128 132
Total 20 24 23 21 24 25 26 29 264 274 261 281
Office ancillary Blue-collar worker Total
2013 2014 2015 2016 2013 2014 2015 2016 2013 2014 2015 2016
Women 18 16 25 19 226 219 212 196 385 381 375 368
Men 64 68 79 64 376 358 356 377 607 603 607 619
Total 82 84 104 83 602 577 568 573 992 984 982 987
Social Responsibility
Employees amp Corporate welfare
Its employees are the heart and soul of Florim they provide its character and its DNA Since 2009 when the current major economic crisis began Florim has undertaken a number of income support programs for its workforce Below we summarise some of the ongoing programmes and others run in 2016bull Ending of the Income Support Program for the Mordano plantbull Agreement with Sassuolo Hospital under which Florim employees and their family members enjoy discounts and shorter waiting times for specialist examinations and outpatient diagnostic tests performed on a private basisbull Special agreements with local health facilitiesbull Tax advice at special rates bull Special terms for banking services with financial consultants on-sitebull Discounts on the purchase of Florim products for employees homesbull Free entry to the Peggy Guggenheim Collection in Venice for employees and concessions for family membersbull Free provision of water and mineral salts in the plants during the summerbull Distribution of fuel vouchers to employees for the Christmas holidays
Summer Play Schemes and Cregraveches
In 2016 the summer play schemes for the children of employees at Fiorano and Mordano were continued for the fifth year in succession Seven different centers across the area between Modena and Bologna hosted 85 children (twice the number of the previous year) the company paid the fee for two weeks attendanceWhats more since 2013 the company has negotiated special terms with local cregraveches which now offer a number of places for employeesrsquo children at a reduced fee
2016 Sustainability Report28
Human Resources Management Policies
In July 2015 on renewal of the in-house supplement to the national employment contract the Management introduced a new phase in its relations with the Trade Unions with the aim of continuing and improving the good relationships enjoyed for decadesThe new company contract applied for all employees at the Fiorano headquarters includes more facilitations for part-time working the willingness to allow flexitime where feasible and the commitment to invest in staff training in order to generate full benefits from intellectual capital The company and the trades unions agreed on a plan to improve efficiency fundamental for maintaining the current level of competitiveness by establishing improvement in Production Efficiency and EBITDA as criteria for the payment of the new Performance Bonus The individual Attendance Score is considered together with these parameters The 2016 Performance Bonus in its first year of application was 20 higher than that paid in 2015 In addition in response to employees requests the Company increased the number of approved canteens extending the choice available and also introduced weekly laundering of work clothing for all production workersWith regard to applications for severance pay advances the Company confirms its commitment to continuing the policy implemented so far
Training
Florim believes that in-house training plays a key role in the companyrsquos development and provides a tool for stimulating and fulfilling the potential of its human resourcesMore than 10600 training hours were provided in 2016 to 847 people with an average of more than 11 hours of training per employee New projects included a 6-month on-line English language course which attracted a large number of participants and two highly structured training courses for the sales division and the communication department A retraining program for workers at the Mordano plant was also completed it comprised 4 technical courses attended by 31 people for an average of 13 hours per person Another new entry for 2016 was an innovative procedure for acquiring information about training needs using an on-line questionnaire available to all employees as well as line managers specific recommendations The Master in Florim project is discussed in depth in the specific section
Health and Safety
Florim was the first Italian ceramics manufacturer to receive BS OHSAS 18001 (Occupational Health amp Safety Assessment Series) certification from TUumlV this international standard certifies the implementation of an internal management system oriented towards occupational health and safetyThis major award confirms the companys constant commitment to the well-being of its employees Every year in addition to engineering inspections and machinery maintenance a number of hours of safety training are organised to raise awareness among workers and supervisors Specifically in 2016 2849 hours were dedicated to safety training and a significant reduction in injury rates was recordedMoreover BLSD refresher courses are continuously held for the team of Florim employees trained in first-aid operations and the use of the defibrillators available on site
2012 2013 2014 2015 2016
Number of workplace injuries 63 62 74 56 43
2016 Sustainability Report 29
The Master in Florim organized for the fourth time in 2016 is a vocational training project which aims to bridge the gap between education (high school or university) and the world of work The program which is one of the companys Social Responsibility projects sets out to help young people to get to know the company through a well structured work experience plan It offers a distinctively northern European approach with a method which alternates classroom teaching with internships in the various areas of the company Participants new university or high school graduates specialising in various subjects all below 30 years of age are therefore able to gain hands-on experience of all Florim departments from RampD to the production process and product distribution for an all-inclusive vision The MASTER courses ambitious aim is to match the individual participants talents with the companys real needs At the end of each edition the company hires all or some of the selected candidates enabling it to acquire new skills new experiences and new energy
Master 40 in figures
20 young people taking part6 months of training13 external lecturers264 hours of classroom teaching392 hours of practical training4 company visits (Ferrari Tetrapak Cremonini and Ducati)50 days of work experience on rotation involving 15 departments1 month of project work
The projects prestige is enhanced by its economic context since Florim pays the young participants for the entire period and its aim is to deal with the thorny problem of youth unemployment The Master has won approval from various faculties at major Italian universities The project was also a winner in the Emilia-Romagna Regions 2016 awards for Corporate Social Responsibility projects run in the local community A prize in the ldquoBusiness and Educationrdquo category was assigned to the Master project which aims to give young people the skills required for sustainable development
Master in Florim
2016 Sustainability Report
Watch the videoof the 4th edition
2016 Sustainability Report30
Local Community amp Culture
This chapter describes a number of programs Florim runs for the local community in the area where it originated and where it has been working for more than 50 years
Politecnico di Milano
Since the 20052006 academic year Florim has been a partner sponsor of a large number of Postgraduate Courses run by POLIDesign the Politecnico di Milano consortium which organizes its Master Degree coursesAlso in association with POLIDesign since 2012 Florims Milan showroom has hosted several design events for architects and designers of every nationality
Aziende modenesi per la RSI
ldquoAziende Modenesi per la RSIrdquo an independent open inclusive association of companies in the Modena area which believe in the principles and values of Corporate Social Responsibility was established by public deed on 30 September 2014 with Florim as a founding member Florim hosts the associations member companies every year to discuss the various topics proposed
Premio Lucchese
The Premio Lucchese presented for the twenty-ninth time in 2016 was established in memory of Giovanni Lucchese and consists of scholarships awarded to students at the ldquoAlessandro Voltardquo Technical High School in Sassuolo who graduate with full marks The award ceremony held every year at the Florim Gallery in association with Societagrave Ceramica Italiana of Bologna includes a talk given by a leading personality on a topic of current interest to an audience of eager young listeners
Intrapresaelig Collezione Guggenheim
As befits a company that combines the values of its local community and historic and artistic heritage with a flair for research and innovation Florim recently launched a partnership with the Peggy Guggenheim Collection Since its foundation Florim has always had a unique ability to incorporate the true cultural significance of its industry in its business model and by this project once again confirms its commitment to promoting art by supporting a collection of extraordinary beauty
Fondazione Ing Giovanni Lucchese
More than thirty years after the untimely death of Giovanni Lucchese ndash founder of what was then Floor Gres currently Florim ndash in 2013 his family established a Foundation in his name which since then has funded organizations and associations that support families in need in the ceramics district The Foundation also supports a variety of projects such as the summer play scheme for employees children the Premio Lucchese and the Florim HealthampTraining Center described in more detail below
The main projects undertaken in 2016 include the funding of the purchase of 10 defibrillators for the Municipality of Fiorano and the contributions made to the purchase of paediatric ambulances for the local area and to support the Parish charitable organizations and social services in the district
Watch the Premio Lucchese video
The project run jointly by Florim and Sassuolo Hospital adopts a completely new model combining industrial culture and healthcare in an original way to benefit the local people and community thanks to the coming-together of a ceramic coverings manufacturer and the public-private joint venture Ospedale di Sassuolo Spa Florim HealthampTraining is the synthesis of this idea an experimental center which promotes local training for healthcare and other staff health education and information advanced medical simulation and research
The Center
On the main Florim site and opened on 16 April 2014 the Center is 550 square meters in area and contains a modular lecture theatre able to seat over 100 people and a number of classrooms for seminars and lessons At its heart is a state-of-the-art control room crammed with technology that operates dummies capable of reproducing human functions of all kinds Advanced simulation is a major aid to maintaining the skills of emergency healthcare workers with a particular focus on pediatric and neonatal resuscitation
Health meetings
Designed as a space for community use the Center also aims to become a place where all sections of the population - workers schoolchildren parents teachers volunteers and even just members of the public - can learn about preventive health care and acquire first aid skills After the distribution to Florim employees of a questionnaire surveying their training needs and preferences a Center Scientific Committee of Sassuolo Hospital medical personnel was appointed and drew up a plan of bi-monthly ldquoHealth meetingsrdquo All meetings are led by doctors with expertise in the various topics who answer the many questions from the audience at the end of their talks Between its opening and the end of December 2016 the Center hosted 13 meetings on a variety of topics attended by about 1000 people including employees their family members and the community at large
Healthcare discounts for Florim employees
The project also includes a major welfare program for all Florim employees and their family members entitling them to discounts and shorter waiting times for specialist examinations and outpatient diagnostic tests performed on a private basis
American Heart Association
The world-famous American Heart Association (AHA) is the oldest and most respected American voluntary organization dedicated to the fight against cardiovascular diseases and strokes In 2015 the AHA via the Simaid International Training Center named the Florim HealthampTraining Center as an Authorized Training Site for basic and advanced cardiopulmonary resuscitation
Florim HealthampTraining Center
2016 Sustainability Report
Watch the Health amp Training Center video
2016 Sustainability Report32
Product Responsibility
Here we summarize the concept of Made in Florim denoting a product that encapsulates the companys core values passion innovation a constant commitment to improvement and corporate social responsibility
Florim product certifications
CE Marking guarantees the user that the materials purchased meet the requirements of the relevant regulations and that the characteristics concerned are virtually unchanged for all production lots It is a declaration of conformity which protects the consumerrsquos safety The presence of the CE Marking on packaging guarantees that Florim products comply with the relevant regulatory requirements
Ecolabel (EC Regulation 662010) is a certification granted to products which comply with ecological and performance criteria set at a European level concerning raw material extraction supplier selection manufacturing processes packaging distribution use and disposal The certified Florim collections are Architech Ecotech Reverse Walks 10 by Floor Gres and Pietra del Nord under the Rex brand
Several ceramic tile collections bearing the Florim brands have earned certification from Bureau Veritas for their pre-consumer recycled material content These articles are therefore fully eco-compatible and can meet the environmental sustainability requirements imposed by many international certifications
Florim is a member of the US Green Building Council (USGBC) the most important association which promotes the reduction of buildings negative impact on the environment To allow the effective monitoring a projects level of sustainability the USGBC has developed a certification procedure for the development of sustainable buildings which assess and certifies the sustainability of a building in its entirety Florim materials are able to help to gain LEED points in a number of areas (data available on the Florim brand websites)
Florim has achieved the prestigious Greenguard certification for all its products Issued by the American body UL Environment this certification aims to reduce indoor pollution caused by interior design systems and materials UL Environment thus aims to protect health by improving air quality and reducing peoples exposure to chemicals and other pollutants Florim has also achieved Greenguard Gold Certification which imposes even stricter limits to confirm that a given product is suitable for use even in locations such as schools and health care facilities
The EPD or Environmental Product Declaration is a document which defines the environmental impacts arising from production In 2016 Florim participated in the study - certified by the German organization IBU - performed on the ceramics industry average data which aims to raise international awareness of the excellence of the environmental standards achieved
Beyond the standardsMade in Florim products are a guarantee of safety highly innovative content and eco-friendliness The people who produce them work in a safe place and in ethically sustainable conditions Due to their nature all Florim products are guaranteed free from pollutant emissions do not accumulate electrostatic charges are frostproof and completely inert and are undamaged by contact with flames The Groups Internet sites and collection catalogues contain the technical data sheets which detail the product information (slip-resistance breaking strain abrasion resistance etc) for every collection as well as its recycled material content with the relative certificates
During the period under consideration no banned products were placed on the market and the company was not found guilty of any breaches of the law with regard to data protection or its marketing and communication activities
EU Ecolabel nr IT2104
2016 Sustainability Report 33
Quality SystemThe current ISO 9001 standards define quality as the ability to satisfy explicit or implicit needs via a product or a service A Quality System implies constant improvement of company processes in order to realise products that always satisfy the customerrsquos needs Further to the 2016 audit Florim obtained the renewal of its UNI EN ISO 90012015 certification for the design manufacture and sale of all categories of ceramic tile
Objective Indicator 2012 2013 2014 2015 2016
Continual improvement of control of the production process
Percentage of First Grade Product ()
924 943 942 952 956
Quality rate () 883 905 903 905 909
Scrap rate () 44 41 42 42 49
Productivity (sq mhour) 186 188 186 190 200
Improvements in sales performance and customer satisfaction
Innovation rate () 330 296 367 455 364
Coverage () 795 714 814 813 816
Total portfolio shippable within one month ()
911 837 888 893 897
Optimization of range and stocks
Obsolete stock () 172 126 165 120 69
Stock turnover rate () 13 15 16 15 16
Gradual elimination of disputes complaints and claims concerning service
Square meters affected by complaints ()
17 12 08 12 09
Complaints by number of order items ()
10 11 11 10 10
Gradual improvement in staff skill levels
Employee turnover () 15 23 04 04 12
KeyPercentage of first grade product percentage ratio between the square meters of first grade products and the total square meters transferred to stockQuality rate percentage ratio between the square meters of first grade product transferred to stock and the square meters leaving the pressesScrap rate percentage difference between square meters of material leaving the presses and square meters of product actually transferred to stockProductivity ratio between the square meters transferred to stock and the total hours worked in the plantInnovation rate ratio between square meters sold belonging to series designed in the last three years and total square meters sold Florim uses this indicator to assess the effectiveness of its design process in terms of salesCoverage percentage ratio between square meters available for immediate shipment and the square meters on orderTotal portfolio of orders shippable within one month percentage ratio between the square meters which can be shipped in 30 days and the square meters on orderObsolete stock percentage ratio between the square meters of substandard discontinued produce and the total square meters in stock Stock turnover rate ratio between the square meters sold and the square meters in stockSquare meters affected by complaints percentage ratio between the square meters affected by complaints and the square meters soldComplaints by number of order items percentage ratio between the number of complaints and the number of items orderedEmployee turnover percentage ratio between the number of employees leaving the company and being replaced and the workforce at the start of the year
2016 Sustainability Report34
Casamood - Neutra 60 Collection
2016 Sustainability Report 35
OUR COMMITMENTS
The promises we keptIn our last Sustainability Report we committed to achieving a large number of objectives the following are the outcomes we attained
Relaunch of the ldquoCEDIT ndash Ceramiche drsquoItaliardquo brand OBJECTIVE ACHIEVED
Launch of the FLORIM stone brand OBJECTIVE ACHIEVED
Installation of a new latest-generation kiln at the Mordano plant OBJECTIVE ACHIEVED
Transfer of the Moscow showroom to new premises SCHEDULED FOR 2017
Creation of a new gatehouse at the Mordano plantOBJECTIVE POSTPONED TO GIVE PRIORITY TO THE CONSTRUCTION OF THE NEW FACTORY
Introduction of ERP system at Florim USA OBJECTIVE ACHIEVED
Installation of a new spray dryer and raw material handling system at Florim USA
OBJECTIVE ACHIEVED
Economic Responsibility
Renewal of certification of the Florim environmental and energy management system
OBJECTIVE ACHIEVED
Award of new certifications for collections manufactured with a high recycled material content
OBJECTIVE ACHIEVED
Continuation of work to reduce environmental impacts at Mordano especially with the reduction of energy costs
OBJECTIVE ACHIEVED
Continuation of the work to remove asbestos cement roofing materials at the Mordano plant
OBJECTIVE ACHIEVED
Expansion of the system which conveys rainwater to the treatment plant OBJECTIVE ACHIEVED
Reduction of the noise emissions of the air filtering systems OBJECTIVE ACHIEVED
Increase of recycling targets through constant awareness-raising amongst all staff and optimisation of recycling facilities
OBJECTIVE ACHIEVED
Continuation of replacement of the diesel forklift trucks for use on outdoor yards with electric vehicles
OBJECTIVE ACHIEVED
Environmental Responsibility
Running of fourth edition of Master Florim course with new procedures OBJECTIVE ACHIEVED
Creation of an internal refreshment area for the Fiorano office staff OBJECTIVE ACHIEVED
Improvement of corporate welfare through the activation of new free services and discounts tailored to employees needs
OBJECTIVE ACHIEVED
Continuation of the health meetings for the local community in association with Ospedale di Sassuolo Spa
OBJECTIVE ACHIEVED
Organization of new community events at Florim Gallery OBJECTIVE ACHIEVED
Organization of Florim Family Day 2016 A PARTY WAS ORGANISED FOR EMPLOYEES
Social Responsibility
2016 Sustainability Report36
The targets we set for ourselvesWe aim to achieve the following objectives in 2017
Economic Responsibility
Construction of a new factory at Mordano to produce large slabs
Launch of the project to unite the Florim spa sales organizations
Total restyling of the corporate and brand Internet sites
Launch of the HUB project - Intranet CRM Marketing Automation
New plants at Florim USA a press two sorting lines a polishing and rectifying line
New working spaces and cloakrooms for technical staff at the American plant
Environmental Responsibility
Purchase of a new cogenerator for the Mordano plant
Introduction of a new rainwater collection system at Fiorano
Land reclamation project involving covering of the Rio Spezzano stream at Fiorano
Implementation of new software for continual monitoring of energy impacts at Fiorano
Modernisation of the compressor room to improve energy impacts at Mordano
Increase of recycling targets through constant awareness-raising amongst all staff and optimisation of recycling facilities
Continuation of replacement of the diesel forklift trucks for use on outdoor yards with electric vehicles
Social Responsibility
Improvement of corporate welfare through the activation of new free services and discounts tailored to employees needs
Continuation of the health meetings for the local community in association with Ospedale di Sassuolo Spa
Organization of new community events at Florim Gallery
Organization of a new event for Florim spa employees
New offices for hospitality and events staff at Fiorano
2016 Sustainability Report 37
FLORIM USA
Profile and Economic ResponsibilityFlorim USA with registered office at Clarksville - Tennessee - and its subsidiary Florim Solution Inc have been part of the Florim Group since 2000 The Florim USA manufacturing plant one of the largest most technologically advanced in the United States produces porcelain stoneware tiles for the residential market and undertakes commercial projects in North America During the last few years Florim USA has implemented a growth and process optimization strategy which has generated significant technological progress with more innovations planned for the future The strategy adopted will put Florim USA at the worldwide state of the art in porcelain stoneware tile manufacture
In 2016 of the 18 million USD invested 147 was allocated for installation of a latest-generation raw material handling system and a large spray-dryer with an innovative sorting system Improvements were made to other parts of the process to increase their efficiency leading to a further reduction in emissions and scrap rates Additional investments are planned during 2017 to continue this dual trend of rising production with mitigation of environmental impact
The new Florim Flagship Store in New York (152 Madison Avenue 32nd Street)
2016 Sustainability Report38
Environmental ResponsibilityFlorim USA implements the same environmental policy as Florim and is committed to achieving the following objectives
bull reduction of the energy used in the production processbull improvement of the waste management process with a focus on recovery and reusebull introduction of new more eco-efficient technologiesbull adoption of integrated management systems
Florim USA has been pursuing a strategy of careful management of its operations and environmental impact for a number of years Here we summarise the main actions taken and the results achieved in 2016
bull installation of a latest-generation spray-dryer in 2016bull installation of an innovative raw material handling system in 2016bull 100 recycling of wastewater within the processbull optimisation of the management of water bottles with elimination of about 34200 of them per annumbull reuse of almost all production scrap (+99)bull 157000 kg of cardboard recycled in 2016bull award of two different types of product certificationbull 9300 kg of plastic recycledbull recycling of 17 complete trucks of pallets
Environmental Projects and Awards
Florim USA has received Clarksville Montgomery County Green Certification (CMCGC) CMCGC is a program designed to help companies learn and implement best practices in the area of environmental stewardship to sustain the local communityrsquos resources through a series of free workshops taught by local environmental specialists Since 2014 Florim has allocated some of its Environment Managers time for the running of these workshopsFlorim USA earned this green company certification thanks to a large number of projects first and foremost the one which eliminated the use of disposable water bottles replaced with individual reusable bottles provided by the company and a series of fill-up stations About 34200 bottles are removed from the waste cycle every year
During the latest phase of its plant optimization Florim USA has implemented a thorough construction material reuse policy In the various stages of demolition of the old plants including the old storage silos the concrete debris was recovered and reused in other construction worksThis project alone generated 11500 tons of recycled aggregate as well as several hundred tonnes of metal sold to a recycling firm
Environmental management system and eco-compatible products
Florim USArsquos products help builders and designers to meet the requirements for sustainable buildings as defined by the United States Green Building Council (USGBC) through the LEED Green Building Rating System This protocol evaluates and certifies the environmental sustainability of a building as a unit from its design to its day to day management To gain LEED credits many of the Florim USA product lines contain a significant percentage of recycled material (40 or more)This feature contributes to an increase in the LEED score in the projects where these products are installed In 2014 Florim USA together with a large number of other US tile manufacturers and the Tile Council of North America drew up a type III environmental product declaration (EPD) certified under the ISO 14025 standard This ceramic tile life-cycle analysis enables Florim USA products to gain LEED points under the new LEED v4 protocol
2016 Sustainability Report 39
Water use (gallonsper million square feetof finished tiles)
208137 216246 204962 195280 194268
Energy use
2012 2013 2014 2015 2016
Cubic feet of natural gas per million square feet of finished tiles 9343383 9149721 8331170 8390503 8380000
kWh per million square feet of finished tiles 510972 491171 450594 465976 490300
Emissions
Particulate material lt 21024 tonnes per annum
SO2 (sulphur dioxide) lt 1674 tonnes per annum
VOC (volatile organic compounds) lt 1245 tonnes per annum
NOx (oxides of nitrogen) lt 1501 tonnes per annum
Environmental performance indicators ndash summary
The following are the main environmental indicators related to the impact and performance of Florim USA during 2016
Pre-consumer recycled material
Its internal material recycling processes enable the company to minimise its environmental impact since most of the material which would otherwise be sent to landfills or other waste treatment centers is reusedbull Wastewater is entirely recycled within the production process without any discharge into the municipal drainsbull The material in the collection bags from the tile body and glaze preparation areas the press and glaze application is entirely recycled within the processbull All scrap fired tiles are entirely recycled within the processbull 157000 kg of cardboard was sold to an external recycled material dealerbull 17 trucks of unusable wooden pallets were sold to a pallet regeneration companybull About 9300 kg of waste shrink-wrap plastic film was recovered and recycled
Post-consumer recycled material
About 82000 kg of glass was removed from the flow of waste destined for the local landfill and recycled within the process Florim USA has signed an agreement with the local landfill for consignment of all the glass it handles which is collected and set aside for recycling
Water use disposal and reuse
The water used during the production process is recycled continually therefore no water is discharged into the municipal drains
The 2016 emissions figures are in line with those for previous years well below the standards laid down
Water use 2012 2013 2014 2015 2016
Water use (gallons per million square feet of finished tiles) 216246 204962 195280 194268 203928
2016 Sustainability Report40
Social Responsibility
Employees
The Florim USA workforce comprises 348 staff employed at the production site the Clarksville and Nashville outlet stores and the Florim Solution offices Of the 348 employees 273 are blue-collar workers and 75 office staff 5 employees are Italians on secondment to the United States Florim USA offers a number of benefits to full time employeesbull health and dental care insurancebull Vision insurancebull life insurance for employees and optionally for family membersbull temporary and permanent disability supportbull employee pension plan
2012 2013 2014 2015 2016
Workplace injuries 50 41 22 29 27
The Employee Assistance Program (EAP) also offers support to employees and their families in the event of psychological difficulty or other problems that can have a negative impact on their quality of life Florim USA supports all the costs of the program
Equal opportunities
Florim USA provides equal opportunities in all employment practices to all qualified employees and applicants regardless of race colour religion gender national origin age disability or membership of the armed forces or any other category protected by federal state or local laws
Health and safety
FLORIM USA is committed to ensuring a safe healthy workplace for all employees It therefore replaces old and obsolete equipment with new technologically more modern machinery and updates safety plans as new information gradually becomes availableAs well as an internal supervisor Florim USA has also appointed a health and safety committee which constantly monitors the plans effectiveness and makes any changes requiredThere are currently 20 plant employees who hold CPRfirst aid qualifications They occupy a variety of positions and work different shifts within the plant and have volunteered to attend training courses sponsored by the company for the award of these qualifications
Training
In 2016 every Florim USA employee attended an average of about 25 hours of training The training provided covered the operating procedures for the new equipment the main safety plans and the procedures for use of existing equipment for new employeesAll new staff undergo specific training for their department focusing on the safety-related aspects of the department concerned as well as more generalized safety training
Some of these themes includebull safe correct use of forklift trucksbull training on work in confined spacesbull shutdownwarning procedures and safe electrical practicesbull safe lifting procedures
2016 Sustainability Report 41
Florim USA ndash (Clarksville Tennessee)
For employees wishing to continue their education Florim USA offers assistance through the Educational Assistance Program It provides aid with the cost of education and textbooks and is available for any employee wishing to study for a technical qualification a diploma or a degreeThe plant staff training and education plan also includes various training schemes at Florim Italy where employees are instructed in the use of new equipment before it is installed at the American plantThroughout 2016 Florim USA will continue to provide a free e-learning course on its website for architects engineers and contractors (AEC) to improve their knowledge of sustainable porcelain stoneware tiles
Employee welfare activities
Florim USA employee picnic - In 2016 the company once again held its annual picnic for employees offering them a wide variety of foods games activities and live shows in an event which provided an unforgettable days enjoyment Within the event participants received prizes in the form of vouchers and gifts
Employee anniversary dinner - 2016 again saw the usual dinner to honour Florim USA employees with 5 10 15 20 or more years of service A special evening event was held in the presence of the Chairman and the other managers to celebrate the loyalty and hard work these employees have contributed during their careers with the firm
2016 Sustainability Report42
Local Community
During 2016 Florim USA continued to provide its support to a number of projects in its local areaSome of the main projects include
Scholarships - As part of its work to support the local community Florim has an established scheme which awards scholarships to deserving students at the Austin Peay State University in memory of Florim Group founder Giovanni Lucchese In December 2016 a delegation of Florim representatives attended a scholarship presentation lunch at the Austin Peay State University hosted by the President of the University
Montgomery County Green Certification Program - Florim USA staff actively participate in the Montgomery County Green Certification Program which aims to help companies learn and implement best practices with regard to safeguarding the environment and environmental resources
Donations - In 2016 the company again made a large number of donationsbull book collection for the Austin Peay State University Employees made a generous donation of used books in good condition for children and young people of the APSU in the hope of further promoting the education of future generationsbull to Community Cares the national organization that promotes the acceptance and social inclusion of individuals with Downs Syndromebull to the Aspire Clarksville Foundation a 501(c)(3) charitable foundation whose mission is to continuously improve the economy and the livability (quality of life) of the community by attracting significant capital investment and expansion by businesses and corporations thereby creating better opportunities and higher paying jobs for residentsbull to the Alzheimerrsquos Association a non-profit voluntary organization dedicated to the care and support of Alzheimers Disease sufferers and research into the condition Its aim is to eliminate the disease through the advancement of research to provide and enhance care and support for all affected and to reduce the risk of dementia through the promotion of brain health
Other activities - Every year Florim USA participates in the United Way Drive initiative to support local non-profit organizations which provide economic assistance and psychological support to persons in difficulty
Florim USA provides regular support to the Salvation Army by collecting canned foods for persons in needIn 2016 the company again organised a canned food collection for Manna Cafeacute in Clarksville TN Manna Cafeacute is a local non-profit organization based in Middle Tennessee with the primary mission of meeting peoples fundamental need for food before encouraging them to permanently change their lives for the better More than 15 of the population in Montgomery County are affected by food insecurity (about 28000 people) The percentage of children affected is about 215 a third of whom are excluded by income from federal programs such as free school mealsFinally donations were made tobull American Lung Association the leading organization working to save lives by improving lung health and preventing lung disease through research and educationbull Cheer for a Cure an organization that gives money directly to afflicting families who have a loved one suffering from cancer and need assistance to alleviate the added financial stressbull Habitat for Humanity Since 1992 Habitat for Humanity in Montgomery County Tennessee has worked with 93 low-income families with more than 210 children to revitalise various parts of Clarksville-Montgomery County by building new homes
2016 Sustainability Report 43
Quality SystemFlorim USA works under a Quality System certified to UNI EN ISO 9001 standards The following are some of the figures in brief
Objective Indicator 2012 2013 2014 2015 2016
Optimisation of control of the production process
Percentage of First Grade Product ()
932 917 940 949 9510
Quality rate () 883 857 893 906 909
Scrap rate () 56 65 48 45 45
KeyPercentage of first grade product ratio between square feet of first grade material and total square feet transferred to stockQuality rate ratio between square feet of first grade material transferred to stock and square feet pressedScrap rate ratio between square feet pressed and square feet of product actually transferred to stock
Other ActivitiesFlorim USA and trade shows
In 2016 Florim USA participated at a number of shows and events including Coverings the AIA Tennessee Convention Hardscape North America Total Solutions Plus Neocon International Pool - Spa and Patio Expo These events targeted at the various categories of industry professionals such as dealers and designers gave Florim USA the opportunity to present its new range of indoor and outdoor products
Design Center
In December 2015 Florim USA opened a design center showroom in Nashville (TN) in a strategic location close to the airport and the city center With a spacious area to host individual CEU presentations and workshops this design center has the potential to be a major resource for local architects In 2016 it was also awarded the ldquoOutstanding Boothrdquo booth prize at the 33rd edition of the Annual Home Decorating and Remodeling Show The location is the ideal place for sharing ideas finding inspiration and putting professionals and architects in touch with each other
Florim Nashville Design Center
2016 Sustainability Report44
GRI International Sustainability Indicators SDGsThe information below illustrates the correspondence between the Florim (Italian companies) 2016 Sustainability Report the GRI-G4 guidelines and the icons of the Sustainable Development Goals (SDGs) definitively adopted by the United NationsA description of the SDGs is available at wwwglobalcompactnetworkorg
GRI indicators
Description Page Reference to SDGs
1 Strategy and Analysis
G4-1 Statement from the most senior decision-maker of the organization 5
2 Organization profile
G4-3 Name of the organization 2
G4-4 Primary brands products andor services 9
G4-5 Location of the organizations headquarters 9
G4-6 Number and names of the countries where the organization operates 9
G4-7 Nature of ownership and legal form 14
G4-8 Markets served 9
G4-9 Scale of the organization 8 8
G4-10 Significant changes regarding size structure or ownership 8
G4-11 Employees covered by National Collective Bargaining Agreement 27
G4-12 Describe the supply chain 16
G4-13Significant changes regarding the organizationrsquos size structure ownership or its supply chain
Reporting process
launched
G4-14 Precautionary principle 22
G4-15 List of external commitments in which the company is involved 22 32 33
G4-16 Associations or interest groups in which the company is involvedwwwflorimit gt
about us gt partnerships
3 Identified material aspects and boundaries
G4-18 Process used to define the report content 6
G4-19 Material aspects 16
G4-20 Boundaries of each material aspect 6
G4-21 Boundaries of each material aspect outside the organizationPartial reporting
(pages 6 16)
G4-22 Explanation of the effect of any restatements of information provided in previous reports 6
G4-23Significant changes from previous reporting periods in the scope boundaries or measurement methods
6
3 Stakeholder engagement
G4-24 List of stakeholders 15
G4-25 Identification of stakeholders 15
G4-26 Stakeholder engagement 6 16
G4-27 Key topics and concerns that have been raised through stakeholder engagement 16
4 Boundary of the Report
G4-28 Reporting period 6
G4-29 Date of publication 2
G4-30 Reporting cycle 6
G4-31 Contacts and addresses for additional information 46
5 GRI Content Index
G4-32 Reporting option chosen 6 7
G4-33 External assurance of ReportThe Report is not
externally assured
2016 Sustainability Report 45
GRI indicators
Description Page Reference to SDGs
6 Governance
G4-34 Governance structure 14
7 Ethics and integrity
G4-56 Values principles standards and norms of behavior 13 16
Economic performance indicators
EC1 Direct economic value generated and distributed 19 25789
EC5 Wages 27 158
EC7 Development and impact of infrastructure investments and services supported 23 24 31 257911
Environmental performance indicators
G4-EN2 Percentage of materials used that are recycled input materials 17 22 23 812
G4-EN3 Energy consumption within the organization 24 781213
G4-EN6 Reduction of energy consumption 17 24 71213
G4-EN7 Reductions in energy requirements of products and servicesPartial reporting
(page 22)71213
G4-EN8 Total water withdrawal by source 17 23 6
G4-EN10 Percentage and total volume of water recycled and reused 17 21 23 612
G4-EN11 Biodiversity 23 615
G4-EN15 Total indirect greenhouse gas emissions by weight 25 3121315
G4-EN16 Total indirect greenhouse gas emissions by weight 25 3121315
G4-EN19 Reduction of greenhouse gas emissions 8 24 1315
G4-EN21 NOx SOx and other significant air emissions 25 31215
G4-EN22 Total water discharge by quality and destination 23 6
G4-EN23 Total weight of waste by type 17 22 3612
G4-EN27 Impact mitigation of environmental impacts of products and services 23 68121315
G4-EN29 Monetary value of significant fines 22 16
G4-EN30 Significant environmental impacts of transporting products and goodsmaterialsPartial reporting
(page 25)111213
Social performance indicators
G4-LA1 Total number and rates of new employee hires and employee turnoverPartial reporting
(pages 17 27)8
G4-LA6 Workplace injury ratesPartial reporting
(page 17)38
G4-LA9 Average hours of training per year per employee 28 48
G4-LA12Composition of governance bodies and breakdown of employees according to gender age group etc
27 58
G4-LA13 Ratio of basic salary and total remuneration of women to men 27 5810
Society
G4-SO1 Operations with local community engagement 12 31 16
G4-SO3 Operations assessed for risks related to corruptionPartial reporting
(page 13)
Product responsibility
G4-PR1 Assessment of health and safety impacts for improvement 23 32
G4-PR3 Type of information about products and services required by the procedures 32 12
G4-PR5 Proceedings relating to customer satisfaction including surveys conducted to measure it 33
G4-PR6 Sale of banned or disputed products 32
G4-PR8 Number of substantiated complaints regarding breaches of privacy 32 16
2016 Sustainability Report46
Your Assessment
You are kindly requested to take a few minutes of your time to give us your assessment and any suggestions to enable us to improve future editions of our Sustainability Report
Click here to send us your feedback
To keep up to date with our business
Spazio CEDIT - interior (Milan)
wwwflorimiten
Florim Ceramiche
Florim4Architects
Florim_ceramiche
Florim Ceramiche spa
Florim Ceramiche
Florim Ceramiche
For any further information please feel free to contact our communications department comunicazioneflorimit
2016 Sustainability Report 47
Premio Lucchese - Florim Gallery (Fiorano Modenese - Modena Italy)
Intrapresaelig Guggenheim Collection - Massimo Bottura in Florim Gallery (Fiorano Modenese - Modena Italy)
Panathlon Christmas Gala - Florim Gallery (Fiorano Modenese - Modena Italy)
2016 Sustainability Report48
White Christmas Party - Florim Gallery (Fiorano Modenese - Modena Italy)
Cersaie - Mario Biondi in Florim Gallery (Fiorano Modenese - Modena Italy)
Dal buio alla luce - Social event at Florim Gallery (Fiorano Modenese - Modena Italy)
2016 Sustainability Report 49
Florim Gallery entrance (Fiorano Modenese - MO)
2016 Sustainability Report52
Florim Ceramiche spaVia Canaletto 24 - 41042 Fiorano Modenese (Modena Italy) - Tel +39 0536 840111 - wwwflorimit
2016 Sustainability Report8
Giovanni Lucchese pioneers the production of extruded clinker tiles and Floor Gres is founded in the heart of the Sassuolo production district
Floor Gres is the first Italian manufacturer to produce single-fired white body tiles
The Swimming Pool Division is established within Floor Gres
Floor Gres is one of the first companies in the world to start the manufacture of porcelain stoneware tiles
Claudio Lucchese son of the founder takes over the reins at Floor Gres after his fathers untimely death
Floor Gres acquires Cerim Ceramiche
Floor Gres and Cerim merge to create Florim
Florim acquires Rex Ceramiche Artistiche
The Project Division forerunner of todays Florim Solutions is created
Incorporation of Florim USA a production and distribution company destined to become a leader on the American market
Florim acquires Casa dolce casa
The Casamood brand is born
A logistics hub is opened in Brazil
The new multifunctional Florim Gallery is opened and the Florim Logistics area is completed at the Florim headquarters The Fondazione Ing Giovanni Lucchese foundation is established
The first Flagship Store is opened in Moscow
The Milan Flagship Store moves to a location in the very heart of the city A new Flagship Store opens in the center of New York
Florim relaunches the historic CEDIT - Ceramiche drsquoItalia brand (which opens its first flagship space in Milan) and FLORIM stone the Groups first brand focusing on the interior design sector
MADE IN FLORIM
Over 50 years of history
Over 1300 employees worldwide
27 million square meters produced every year
406 million Euro turnover
1424 tons of CO2 not emitted in 2015 thanks to the photovoltaic system
It takes more than figures to define a company Today passion innovation a constant commitment to improvement and corporate social responsibility are the core values of a new way of doing businessthe MADE IN FLORIM way
Our History 1962
1967
1976
1981
1984
1990
1992
1994
1995
2000
2005
2006
2011
2013
2014
2015
2016
Watch the Floriminstitutional video
2016 Sustainability Report 9
Our Locations The map shows the grouprsquos headquarters showrooms production plants and logistic hubsFlorim brand products are available from top international customers and importers
Our Brands
Floor Gres is the brand specifically for innovative architectural projects The Floor Gres product range meets all the many and varied needs of contemporary architecture in terms of design and technical capabilities and environmental standards
Rex is the brand which denotes stylistic excellence with products inspired by precious natural materials (wood marble and stone) coordinated floor and wall coverings in which the surfaces interact to generate a new language in home design
Cerim is the brand that focuses primarily on color and on decoration Coverings designed on an integral basis to make the most of all parts of the home and offer solutions that adapt to the most diverse interior design contexts
Casa dolce casa and Casamood is the brand intended for high-end architecture and interior design and offers attractively blended colours and surfaces drawn from nature for the creation of warm interiors A range of matching colours and surfaces that combines porcelain stoneware with other types of materials Architectural design effects are blended with the language of interior decoration to create new types of relationships
CEDIT - Ceramiche drsquoItalia embodies the dialogue between art craftsmanship and technology The brand that shapes ceramic matter in the service of creativity allowing leading names of our time to express themselves to their full potential Large designer slabs that renew the concept of architectural space
FLORIM stone is the brand that combines performance and practicality with the utmost personalization of spaces Large porcelain stoneware slabs at the service of interior design professionals delivering creative flexibility with outstanding technical performances and appearance values
Florim USA is the brand of the American subsidiary its porcelain stoneware tiles for residential and commercial use manufactured in the plant at Clarksville (Tennessee) are tailored to suit the tastes of the largest possible segment of the North American market
FLORIM USASite production plant and logistics hubClarksville TN (USA)
Flagship StoreNew York NY (USA)
Logistics hubParanagrave (BRAZIL)
OceSingapore (SINGAPORE)
Flagship StoreMoscow (RUSSIA)
Site production plant and logistics hubFiorano Modenese (Modena ITALY)Production plantMordano (Bologna ITALY)
- Flagship Store- Spazio CEDITMilan (ITALY)
2016 Sustainability Report10
Our Design ServiceAs well as the product itself Florim offers a unique level of technical support throughout the various design phases From the feasibility study to the final installation Florim Solutions works side by side with the architect providing skills and experience whenever the style and performance of porcelain tiles become fundamental to the project In the age of speed and the digital revolution the company has also created an integrated web platform to give its professional partners unbeatable service Exclusive events visibility for projects free training meetings and specific competitions are just some of the services offered by Florim4Architectscom
Expo Azerbajan Pavilion winner of the Florim4Architects ldquoProject of the Yearrdquo competition
2016 Sustainability Report 11
Our 2016In this section we focus on the latest news from the Group covering a wide variety of aspects but all confirming the importance of Florims large slabs and once again underlining the centrality of innovation for the companys business
New brands
In April Florim chose the Salone Internazionale del Mobile a major event for the global design community for the relaunch of the CEDIT - Ceramiche drsquoItalia brand The brand which has always had links with leading artists designers and architects has achieved a superlative creative standard over more than fifty years of experimentation with materials and stylistic research in ceramic design CEDIT is returning to the forefront of Italian manufacturing in partnership with some of contemporary Italys top creative names Its new identity is a fine blend of Craftsmanship and Innovation expressed on the large slabs produced by Florim technology December saw the official opening - in the heart of Milan - of the first Spazio CEDIT the tangible expression of an innovative display concept created to convey the brands philosophy to the world
The brand created to explore new application solutions reaching beyond the conventional construction concept is called FLORIM stone Launched at Cersaie - the biggest ceramics industry show - this brand combines the outstanding performances of porcelain stoneware with the utmost personalisation of spaces The dimensional and functional plus factors of latest-generation large slabs allow stoneware to be used in a versatile customized way not just as a wall and floor covering but also for tops and furnishings (tables kitchen worktops and bathroom counters doors and fireplaces are just some of the possible applications)
New look
A busy year partly due to the refurbishment of the Fiorano Modenese headquarters As well as the new gatehouse the faccedilade of the office building was also restyled bringing it up to date with an all-white lookAn innovative modification at the technological state of the art was made to the raw material shed with a ventilated faccedilade of almost 1900 msup2 of Magnum Oversize large slabs The installation reproduces the ldquoArcheologierdquo collection (designed by artist Franco Guerzoni for CEDIT) and the lake of Vernago in Italys Alto Adige region (photo by Vanni Borghi) A latest-generation project leading the way in technology safety and maintenanceLast but not least a new barrier was also designed and constructed to separate the Florim property from the SFrancesco road It took 3 months to erect a boundary fence of about 340 meters of double-sided porcelain stoneware slabs 180 cm high and 265 cm wide supported by a steel frame With a total of 1122 slabs the fence was designed to withstand weather earthquakes and the forces generated by traffic passing at high speeds Installed at different angles the slabs create attractive effects with light and shade demonstrating the importance of sophisticated aesthetics to the companys identity
New Awards
Florims large slabs are the featured products in the various awards received and have been assigned one of the most important accolades in the design world with an Honourable Mention at the XXIV edition of the ADI Compasso drsquoOro awards
Just a few months after its launch the CEDIT brand also received major awards at the global level the NYCxDESIGN Award in New York the Hospitality Design Awards in New York ldquo100 Best of 2016rdquo at the Archiproducts Design Awards 2016 and the Best of the Best (April 2017) in the Design Product category at the coveted German Red Dot Design Award
More recognition came from the Emilia-Romagna Regions 2016 awards for Corporate Social Responsibility projects run in the local community A prize in the ldquoBusiness and Educationrdquo category was assigned to the Master in Florim project which aims to give young people the skills required for sustainable development
Learn moreabout CEDIT
Learn moreabout FLORIM stone
2016 Sustainability Report12
In the age of digital transformation Florim still believes in the importance of creating opportunities for meeting and exchanging ideas and in 2016 more than 12000 people came to the Florim Gallery (a multi-purpose space of 9000 msup2 at the Fiorano headquarters) Events of social usefulness workshops community projects and business occasions our training events and hospitality staff were busy on many different fronts It was also a major year for off-site events The Florim Flagship Store in Milan and the just-opened New York Flagship Store hosted more than 3200 people at events for architects and designers supported with important partnerships with POLIdesign and leading publishersFlorim also chose the world-famous Peggy Guggenheim Collection in Venice as the location for two exclusive events to highlight the partnership agreement signed with Guggenheim Intrapresaelig A dinner in the wonderful setting of the museums panoramic terrace followed speeches by distinguished guests Ettore Mocchetti Martino Gamper Domitilla Dardi Giorgia Zanellato Daniele Bortotto Franco Guerzoni and Benedetto Fasciana The final event of the year was held for the employees with a ldquoWhite Christmas Partyrdquo evening at a Florim Gallery decorated for the festive season
A year of Florim events
LrsquoArte del Design - Florim event at the Peggy Guggenheim Collection (Venice)
2016 Sustainability Report
View the Florim eventat the Guggenheim
2016 Sustainability Report 13
GOVERNANCE
Code of EthicsThe groups governance plays a central role in the responsible development of its business ensuring ethical transparent management of its operations with its stakeholders interests always in mind
After approving the Governance Model compliant with the provisions of Italian Legislative Decree 2312001 the Florim Board of Directors signed and promoted the corporate Code of Ethics (revised in June 2016) which has become an integral part of Florims business and is accepted by every new employee supplier and agentTo guarantee the application of and compliance with its contents a Supervisory Board was established to detect any breaches of its provisions All stakeholders can also contact the Supervisory Board (organismodivigilanzaflorimit) for further explanations regarding the interpretation and application of the corporate Code of Ethics as described on the corporate websiteThe following is an extract from the rules of conduct which govern the way we do business
Our mission
To manufacture ceramic tiles and materials for multiple uses and offer the most appropriate solutions for both interior design and architecture To constantly prioritise environmental sustainability attempting to satisfy the needs of customers and to create value for shareholders employees and the local community in compliance with the ethical principles and rules of conduct set out in the Code of Ethics
Our vision
To be at the cutting edge of technical and design innovation in ceramics by developing materials and production methods that position us as a constant benchmark for customers architects and competitors
Our values
Honesty and Respect all internal and external relationships must be based on honesty and respect for rules and dignity of the individual
Corporate Social Responsibility corporate social responsibility must be promoted through measures and practices adopted to support the local environment and community
Individual Responsibility everyone must be aware of the worth and consequences of their own actions
Quality and Innovation excellence must be pursued by improving products processes and skills to promote corporate success
Transparency intentions and positions must be expressed openly and clearly without misunderstandings or misrepresentation to build lasting relationships based on trust both inside and outside the company
Courage a moral strength which enables us to undertake and deal with changes difficulties and challenges to benefit from all the opportunities they offer
Feeling of Belonging feeling proud to be a part of one big team made up of the company associates customers and suppliers
Management System Policy
To achieve greater and greater transparency in its reporting the company has drawn up guidelines for its quality environment safety and energy management system Read more
2016 Sustainability Report14
Corporate BodiesFlorim Ceramiche spa is a family-run business with fully subscribed paid-up share capital consisting of 50000000 ordinary shares with a face value of 1 Euro each The capital is 100 owned by the holding company FinFloor spa with registered office in Fiorano Modenese which is in turn indirectly owned by the Lucchese family through Fin-Twin spa
The Board of Directors has 11 members
CLAUDIO LUCCHESE Chairman
DONATO BRUNI Deputy Chairman
MARIADELE LUCCHESE Director
ANNA LUCCHESE Director
FRANCESCA LUCCHESE Director
GIOVANNI LUCCHESE Director
The Board of Directors has a mandate of one year and new elections will coincide with the approval of the financial statements The Board of Statutory Auditors is composed of three members whose term of office is three years from their appointment on 1252016 until approval of the 2018 financial statements The financial statements of Florim spa and the consolidated financial statements of FinFloor spa and Fin-Twin spa are audited and certified by Deloitte spa
Corporate StructureThe changes to be noted since the previous financial statements include the incorporation of ldquoMordano 4 srlrdquo and amalgamation by acquisition of Maker srl in Florim Ceramiche spa
KRONOS 2 CERAMICHE spaShare capital euro 1646799
Fondazione Ing G LuccheseEndowment euro 60000
FABBRICA delle MATERIE srlShare capital euro 10000
EDIL FLOOR surlShare capital euro 9812681
ISABELLA srlShare capital euro 100000
FI HOLDING IncShare capital USD 50000
100
10
100
30
9667
100
1
1
99
99
100
FIN TWIN spaShare capital euro 540800
FINFLOOR spaShare capital euro 10500000
542810
FLORIM CERAMICHE spasingle shareholder companyShare capital euro 50000000
100
FLORIM BRASIL LtdaDISTRIBUICcedilAtildeO DE CERAcircMICAS Ltda
Share capital R$ 46100000
FLORIM RUSShare Capital 100000 Roubles
FLORIM USA incShare capital USD 51865541
FLORIM SOLUTION IncShare capital USD 845943
100
MORDANO 4 srlShare capital euro 100000
85
FLORIM FAR EAST PTE LtdShare capital S$ 10000
100
ERMES GIUSEPPE FERRARI Managing Director
GIOVANNI GROSSI Managing Director
OSCAR ISEPPI Managing Director
DORVAN SAZZI Managing Director
STEFANO TORRENTI Managing Director
2016 Sustainability Report 15
StakeholdersStakeholders are all individuals and groups who may influence or be influenced by a companys operations in terms of policies products and working processes shareholders employees customers and consumers suppliers local government the local community banks and trade unions
Employees and Trade Unions
Florim makes the following commitments to its employees
bull to guarantee equal opportunities fair pay and professional growth
bull to reward its human resources on the basis of transparent meritocratic criteria
bull to create safe working environments and processes
bull to guarantee transparency and clarity in contract conditions
bull to encourage dialogue and internal communications
Customers and Consumers
In dealing with its (retail) customers Florim is committed to
bull creating a relationship of trust as a stable basis for business
bull guaranteeing clarity in contracts and prices
bull guaranteeing the reliability of its products and developing customer service
bull offering innovative safe environmentally sustainable products
bull providing a diversified offering with services with high value added
The overall aim is also to satisfy the expectations and demands of the final consumer
Developers Architects and Interior Designers
To meet the needs of developers Florim is committed to
bull offering state-of-the-art solutions in terms of environmentally sustainability technology and design
bull establishing and fostering relationships with partner professionals
bull providing consulting and technical experience from the project concept through to installation
bull supplying turnkey solutions
Local Communities and Local Government
In its relationships with local communities and local institutions Florim is committed to
bull guaranteeing dialogue cooperation and transparency
bull giving value back to the local communities in the areas where it operates
bull continually improving the environmental performances of processes
bull researching developing and using the most sustainable technologies
bull making an economic contribution to local sporting and social projects for children and young people
Suppliers
When selecting its suppliers Florim pays close attention to companiesrsquo CSR practices Florims relationships with its suppliers are based on compliance with the values of its code of ethics otherwise contracts are automatically terminated Florim also guarantees certainty in payment times and compliance with contract terms provided the goods and services contracted are delivered as agreed
ERMES GIUSEPPE FERRARI Managing Director
GIOVANNI GROSSI Managing Director
OSCAR ISEPPI Managing Director
DORVAN SAZZI Managing Director
STEFANO TORRENTI Managing Director
2016 Sustainability Report16
Materiality ApproachIn 2015 the company began an internal analysis process based on the materiality principle in order to identify the sustainability issues of relevance both for the Group (including Florim USA) and for all stakeholders Materiality is the threshold above which a topic becomes sufficiently important to be included in the report In fact organizations are faced with a large number of topics on which they could report Relevant topics and indicators are those considered important for reflecting the organizations economic environmental and social impacts or which influence the decisions of its stakeholder and which therefore potentially merit inclusion in the report In accordance with the GRI ndash G4 Guidelines Florim has analyzed and identified relevant topics which were assessed by the working team which drafted the Sustainability Report on the basis of discussion with the main stakeholders The findings which emerged were supported by a qualitative survey external to the companys context examining an analysis of the press gallery (more than 650 articles) competitors Sustainability Reports the Emas Study of the Fiorano and Sassuolo Ceramics District and the GRI document ndash ldquoSustainability Topics for Sector What do Stakeholders want to knowrdquo
In the chart below the aspects found to be most important appear in the top right-hand corner and constitute a strategic priority for the Group The topics in the bottom left-hand corner such as biodiversity prevention of corruption and absence of discrimination are less relevant because they are easy for both the organization and stakeholders to manage and no problems have ever been reported over the years Similarly the protection of human rights is now taken for granted since Florim complies strictly with all the provisions of the National Employment Contract
Importance for stakeholders
Importance for Florim spa
low
m
ediu
m
high
low medium high
Biodiversity
Indirect economic impacts
Prevention of corruption
Market share
Absence of discrimination
Sustainable transport
management
Protection of Human Rights
Environment and safety
Water saving
Energy efficiencyRaw materials
Diversity and equal opportunities
Transparency of financial and other
information
Ethical supplier
management
Investments in the local community and social welfare
Direct and indirect environmental
impacts
Green products and
services
Economic performance
Quality of products offered to customers
Regulatory compliance
Development of human resources
and training
ENVIRONMENT
COMMUNITY
EMPLOYEESASSOCIATES
ECONOMIC PERFORMANCE
PRODUCT RESPONSIBILITY
HUMAN RIGHTS
2016 Sustainability Report 17
FinFloor consolidated (in thousands of Euro) 2012 2013 2014 2015 2016
Net earnings 315344 325853 329533 374094 406759
EBIDTA 59608 72986 84395 98115 107186
Operating result 35717 50996 58508 66255 71028
Gross cash flow 52710 68312 83274 97268 109148
Net profit 26103 35732 36433 43324 49347
Net financial indebtedness (127730) (96500) (54524) (27326) (12508)
Final inventory 95514 84432 90283 92795 96721
Net shareholders equity 186905 218847 276916 332721 369937
Total investments 32572 48780 41584 34215 53531
2012 2013 2014 2015 2016
Waste produced (t) 30228 21170 22300 30862 34423
Recycled third-party waste (t) 4028 4190 1721 2570 5627
Total water consumption (msup3) finished product (t) 075 075 078 069 071
Recycled water percentage 100 100 100 100 100
Self-generated energy in relation to consumption 67 68 62 65 75
Investments in environmental management (euro000) 13617 2493 1995 465 6400
2012 2013 2014 2015 2016
Number of employees at 3112 1037 992 984 982 987
Total number of training hours 14690 9124 9056 7176 10606
Number of training hours on environment and safety 7572 4514 4200 3008 2489
Number of workplace injuries 63 62 74 56 43
Environmental and social profile figures refer to Florim Italy for Florim USA please see the relevant section (from page 37)
REPORTING
In brief
Economic Profile
Environmental Profile
Social Profile
2016 Sustainability Report18
Economic Responsibility
Comments on 2016 Economic Data
The Groups 2016 results were again good from every point of view
Compared to the previous year turnover increased by 87 leading thanks to careful management of production costs to an EBITDA of Euro 1071 million equivalent to 263 of turnover and a profit after tax of Euro 493 million
The companys financial data also significantly improved with a net financial position of Euro 125 million compared to Euro 273 million at the end of 2015 in spite of record technical investments of Euro 535 million and financial investments of Euro 11 million
Once again underlying the results achieved were large investments in latest-generation machinery and technologies painstaking research to develop materials with exceptionally high technical and design content human resources and projects for the increasingly direct promotion of Florims image and quality standard
Investments
The technical investments made in 2016 amount to Euro 535 million while Euro 11 million was spent on reacquiring 100 ownership of Maker srl followed by its amalgamation with Florim spa on 31 December The most important industrial projects included the continuation of the work on the Mordano plant which involved investments of Euro 26 million for the restructuring of the raw material preparation area and the doubling of production capacity for traditional porcelain stonewareThe investments of US$ 18 million at Florim USA were utilised to complete the renewal of the raw material preparation area and construct a new building for the technical organizationFinally about 9 million Euro was invested at Fiorano on various production line modernization projects
A creative hub for design style and new trends Milan once again confirms that it is the ideal setting for Florims investments and the opening of the all-new ldquoSpazio CEDITrdquo confirms the companys determination to strengthen its bonds with design professionals working in high-end interior design The culture of beauty art architecture and design are all integral to the genetic make-up of CEDIT ndash the historic Italian brand relaunched by Florim in 2016 ndash and dominate the display areas and the first six ceramic covering collections styled by famous names on the contemporary creative sceneOn two levels with a total floor area of more than 200 msup2 the space maintains the same stylistic identity as the one at Fiorano Modenese since they are both constructed to an architectural design intended to be replicated in CEDIT customers showrooms worldwide
Spazio CEDIT Watch theinauguration video
2016 Sustainability Report 19
Economic Value Generated and Distributed
The figures for the economic value generated and distributed provide a simple clear explanation of how Florim has created wealth and redistributed it to its stakeholders The table below contains the data from Florims 2016 financial statements approved by the Board of Directors on 30 March and certified by external auditorsThe economic value directly generated is represented by the total earnings for 2016 while the economic value distributed includes the costs incurred for suppliers and employees payments to the state (taxes) and the donations which had positive repercussions for the community to which Florim spa belongs
Heading 2014 2015 2016
Revenues 253125 269855 302521
Direct economic value generated 253125 269855 302521
Operating costs 135735 150951 168809
Employee wages and benefits 56985 58149 62418
Payments to providers of capital 7413 6399 11903
Payments to government 15738 13162 15382
Community investments 221 212 240
Economic value distributed 216092 228873 258752
Economic value retained 37033 40982 43769
KeyRevenues net sales plus revenues from financial investments and sale of assetsOperating Costs payments to suppliers non-strategic investments royalties payment facilitationsEmployee wages and benefits employee wages and benefits per employees (current payments)Payments to providers of capital all payments to the organizations providers of capitalPayments to government gross taxes and dutiesCommunity investments voluntary donations and investments in the communityEconomic value retained calculated as economic value generated less economic value distributed
The data in the table are in thousands of Euro and refer to the consolidated financial statements of the Italian companies only
KBIS (USA) - detail of the stand created with ldquoI Classici di Rexrdquo
2016 Sustainability Report20
Casa dolce casa ndash Argille 20 Collection
2016 Sustainability Report 21
Environmental ResponsibilityEffective environmental policy management energy saving and emissions reduction are amongst Florims strategic sustainability objectives
Our green projects in figures
2 highly-regarded process certifications
ISO 14001 (ENVIRONMENT)and ISO 50001 (ENERGY)
849873 MWh is the amount of electricity the
company succeeded in producing in-house during 2016
2 departments (marketing and communications)
engaged on digitizing advertising tools
8462 tons of CO2 NOT emitted
CO2
100 is the percentage of wastewater recycled
16000 msup2of photovoltaic panels covering
an area of 30000 msup2
75 is the percentage of the electricity consumed which is
produced in-house
4 latest-generation industrial kilns installed in
the last 3 years
4 different types of environmental product
certification
2 cogeneration plants to increase energy saving
and efficiency
1 laboratory for the development of contemporary design projects with a specific focus on the materials green
content
100is the percentage recycling of
industrial greenware waste in the production process
2016 Sustainability Report22
Certifications
System and process certifications
UNI EN ISO 14001TUumlV has awarded Florim the highly-regarded UNI EN ISO 14001 voluntary certification which confirms its compliance with a series of internally certified procedures intended to improve the internal environmental management system The decision to seek this certification springs from the desire to reconcile quality with efficiency and productivity while protecting the environment and community in which the company operates
UNI EN ISO 50001Thanks to a careful energy management policy and aided by the latest investments in the production area also intended to improve energy efficiency Florim was the worlds first ceramics manufacturer to obtain ISO 50001 certification of its Energy Management System
In addition to its environmental certifications Florim has also been awarded prestigious AEO (Authorized Economic Operator) status
Further to a lengthy and demanding audit process by the Customs Authorities in 2016 Florim was awarded AEO certification the first company in the Province of Modena to receive this major form of approval Authorised Economic Operator status guarantees the companys absolute compliance with customs and security requirements in its foreign trade
Environmental Management
Waste 2012 2013 2014 2015 2016
Total waste produced (t) 30228 21170 22300 30862 34423
Non-dangerous recyclable waste (such as paper and cardboard fired scraps plastic glass and wood) ()
989 982 985 991 989
Non-dangerous disposed-of waste (such as the waste picked up by the motor sweepers) ()
02 04 02 02 02
Dangerous recyclable waste (such as spent oil batteries and monitors) ()
00 01 01 01 00
Dangerous disposed-of waste (such as spent lime) () 01 13 12 07 09
Third-party waste recycled within the production process (t) () 4028 4190 1721 2570 5627
Besides recycling greenware waste from its own production cycle (not included in the table because the amount cannot be calculated) Florim also recycles third party waste
Florims operations have always been oriented towards optimization of impact on the local community and environment Thanks to the work of its research laboratories the support of all staff and the recent investment plans tangible results have been achieved The data provided below reveal that in spite of an increase in production of 8 compared to the previous year consumption remains low The companys commitment to environmental protection is all-inclusive and also comprises a focus on the district within which it operates One example is the total removal of all asbestos cement from the Fiorano Modenese plant and the creation of the new recycling station opened in 2015 and donated to the Local Authority as a public serviceAs in previous years during 2016 Florim was not fined for any breaches of environmental regulations or laws
Florim recycles and optimises within the production process all greenware scraps dust residues from filters and sludge from the process and rectification wastewater treatment system The waste produced is detailed in the table the significant differences between years are due mainly to the major demolition and subsequent reconstruction works undertaken at the Italian plants
Waste Management
2016 Sustainability Report 23
Water Resources
No environmental impact of wastewater discharges is specified since all the water from the production cycle is completely reused (100) All other effluents comply with legal requirements
The figure states the total cubic meters of water used per ton of finished product The water used in the Fiorano production process is drawn from private company-owned wells with water from the public main only used for non-industrial purposes The Mordano plant is supplied by an industrial water main Water use is measured by means of meter readings Four highly innovative dry rectifying plants have gone into production at Mordano since 2015 enabling the company to eliminate the physicalchemical treatment of the water used in the rectification process
WATER USE
2012
08
2013
08
2014
08
2015
07Total water consumption (msup3) finished product (t)
07
2016
All packaging used for Florim materials is made from recycled paper and parts of the coverings used to protect pallets of finished products consist of recycled plastic Whats more all the packaging used (boxes cardboard shrink wraps pallets etc) can be completely recycled by the end user The latest investments made include new eco-friendly packaging machines increasing the number of these machines installed to 15 These plants completely eliminate waste due to leftover inventory saving significant amounts of cardboard
Packaging and Coverings
As the materiality assessment states Florim has no significant impacts on the biodiversity of its local area since the company is located inside the Fiorano Modenese ceramics manufacturing district at least 5 Km from the nearest nature reserve at Salse di Nirano Florim takes special care over the choice of the raw materials used for its tile body mixes of which it is required to provide documentation guaranteeing compliance with the European Directives protecting wild birds (EU Dir 79409EEC) and habitats (EU Dir 9243EEC) and the United Nations Convention on the protection of biodiversity It has also introduced a software program - used at the 3 production plants (Italy and the USA) - for the management of data on the origin of raw materials such as quarry location distance from the factory recycled content declaration technical safety and radioactive content data sheets and the expiry of the quarrying permit issued by the government
Raw Materials and Biodiversity
2016 Sustainability Report24
Energy Management
There is no disputing that large amounts of energy are required to power the production processes of ceramic tile plants with consequent direct and indirect impacts on the local area and the environmentThe main indicator used to measure plants energy performance is the mean specific total energy consumption (TEJ) measured in GJt of product transferred to stock As the table below shows this figure is obtained by adding together heat consumption (NGJ) and electricity used (EEJ)
Parameter ndash Definition Unit of measurement
2012 2013 2014 2015 2016
NGJ Mean specific natural gas consumption in relation to the unit of weight of finished product transferred to stock
GJt 557 571 576 578 598
EEJ Mean specific electricity consumption in relation to the unit of weight of product transferred to stock
GJt 111 108 111 108 107
TEJ Mean total specific energy consumption in relation to the unit of weight of product transferred to stock
GJt 668 679 686 685 705
Self-generated electricity as a proportion of consumption
67 68 62 65 75
With two cogeneration plants (for the combined in-house production of heat and electricity) and 16000 msup2 of photovoltaic panels the company certainly sets a new benchmark for the entire ceramic tile industry 2016 saw the replacement of the Fiorano turbine set (the main component of the cogeneration plant) while the one in Mordano was kept in operation 247 factors which led to a 10 increase in in-house electricity production in relation to consumption To provide a clearer idea of the scale of the achievement the amount of electricity the company generated in-house in 2016 (849873 MWh) would cover the average annual consumption of about 37000 households (With consumption per household of 229 MWh - data from the latest ISTAT survey in 2012ndash calculated on the Italian average)
Photovoltaic Plant
kWp kWh produced kg of CO2 not emitted
270021 15937250 8462680
Good Practice
The head office organizations are also optimizing paper and energy consumption In addition to issuing and distributing the energy saving handbook for its offices the company is also trying to maximize savings on the raw material used and specifically the use of paper Internally the company only purchases reams of paper which carry environmental certification and the paper used in offices is collected separately for proper disposal Externally the company distributes a system of merchandising products made mainly from recycled paper and encourages the gradual digitization of its marketing tools as well as publishing all its catalogues in digital format on its Internet sites Florim offers its distributor companies an innovative digital touch screen tool with the pdf versions of the catalogues and other tools for the final consumerIn 2016 Florim decided to adopt a new payslip distribution procedure introducing an online processing system As well as providing employees with new functions and greater operating flexibility thanks to this system the company no longer prints out the monthly payslips saving paper ink and energy The scheme initially involving all office workers has the ambitious target of also including the staff of the Fiorano and Mordano plants
The 16000 square meter photovoltaic plant received recognition from GSE (Energy Management Services) as one of the most innovative installations of its type and from its commissioning (October 2011) up to December 2016 it produced the following results
2016 Sustainability Report 25
Atmospheric Emissions
The industrial facility emits greenhouse gases basically CO2 from the following main sourcesbull combustion from the burning of fossil fuels (such as natural gas)bull processes from the minerals in the raw materials any organic matter in the clays used and any organic additives in tile body mixes
In order to comply with Directive 200387EC (ETS - Emission Trading Scheme) Florim has been reporting and certifying its CO2 emissions since 2013
CO2 emissions 2013 2014 2015 2016
CO2 emissions (t) 102728 103462 111862 132960
CO2 emissions (t) Finished product (t) 033 033 033 035
Emissions from the production cycle 2013 2014 2015 2016
Particulate material (gmsup2 finished product) 223 130 098 118
Lead (gmsup2 finished product) 000 000 000 000
Fluorine (gmsup2 finished product) 014 018 013 012
The increase in CO2 is due mainly to the large increase in the square meters produced (+ 8) and the 247 use of the cogeneration plant However it should be noted that the cogeneration plant provided a 10 increase in in-house electricity generation with lower CO2 emissions than electricity purchased from the grid produced mainly using fossil fuels (source ISPRA Fattori di emissione atmosferica di CO2 e sviluppo delle fonti rinnovabili nel settore elettrico Rapporti [Atmospheric CO2 Emission Factors and Development of Renewables in the Electricity Sector Reports] 2122015)The ratio between CO2 emissions and tons of finished product produced increased because in 2016 the sale of spray-dried material to other companies rose compared to the previous year (emissions from this phase are included in the emissions count but there is no corresponding output of finished product)
In a change from previous years the new GRI-G4 guidelines also require reporting of nitrogen oxide and sulphur oxide emissions Nitrogen oxide (NOx) emissions are within the limits permitted under the integrated environmental authorisation Sulphur oxide (SOx) emissions are not reported here since this figure is not required by the IEA
Transport
The materiality study reveals that transport is a significant factor for both stakeholders and Florim itself The company is not able to measure the impact of transportation of finished product on the local area since all shipments are ex-works However Florim which has been introducing electric vehicles to replace its oldest most obsolete unleaded petrol forklifts for years now has further optimized the handling of materials thanks to the new highly-automated logistics hub created at the via Canaletto location In 2016 about 53 of the vehicles used on the companys premises were electric with no direct greenhouse gas emissions
2016 Sustainability Report26
CEDIT ndash Creative Composition
2016 Sustainability Report 27
Workforce Composition
In 2016 the workforce included 27 people with disabilities 6 women and 21 menBearing in mind the job descriptions arising from the specific industrial sector the breakdown between men and women is in line with the industry average Male office workers and executives earn an average of 10 more than women for jobs of equal responsibility Among blue-collar workers the difference is 7 The company had a total of 29 foreign employees 24 at Fiorano and 5 at Mordano
Manager Executive Office worker
2013 2014 2015 2016 2013 2014 2015 2016 2013 2014 2015 2016
Women 2 3 3 3 3 1 1 1 137 142 133 149
Men 18 21 20 18 21 24 25 28 127 132 128 132
Total 20 24 23 21 24 25 26 29 264 274 261 281
Office ancillary Blue-collar worker Total
2013 2014 2015 2016 2013 2014 2015 2016 2013 2014 2015 2016
Women 18 16 25 19 226 219 212 196 385 381 375 368
Men 64 68 79 64 376 358 356 377 607 603 607 619
Total 82 84 104 83 602 577 568 573 992 984 982 987
Social Responsibility
Employees amp Corporate welfare
Its employees are the heart and soul of Florim they provide its character and its DNA Since 2009 when the current major economic crisis began Florim has undertaken a number of income support programs for its workforce Below we summarise some of the ongoing programmes and others run in 2016bull Ending of the Income Support Program for the Mordano plantbull Agreement with Sassuolo Hospital under which Florim employees and their family members enjoy discounts and shorter waiting times for specialist examinations and outpatient diagnostic tests performed on a private basisbull Special agreements with local health facilitiesbull Tax advice at special rates bull Special terms for banking services with financial consultants on-sitebull Discounts on the purchase of Florim products for employees homesbull Free entry to the Peggy Guggenheim Collection in Venice for employees and concessions for family membersbull Free provision of water and mineral salts in the plants during the summerbull Distribution of fuel vouchers to employees for the Christmas holidays
Summer Play Schemes and Cregraveches
In 2016 the summer play schemes for the children of employees at Fiorano and Mordano were continued for the fifth year in succession Seven different centers across the area between Modena and Bologna hosted 85 children (twice the number of the previous year) the company paid the fee for two weeks attendanceWhats more since 2013 the company has negotiated special terms with local cregraveches which now offer a number of places for employeesrsquo children at a reduced fee
2016 Sustainability Report28
Human Resources Management Policies
In July 2015 on renewal of the in-house supplement to the national employment contract the Management introduced a new phase in its relations with the Trade Unions with the aim of continuing and improving the good relationships enjoyed for decadesThe new company contract applied for all employees at the Fiorano headquarters includes more facilitations for part-time working the willingness to allow flexitime where feasible and the commitment to invest in staff training in order to generate full benefits from intellectual capital The company and the trades unions agreed on a plan to improve efficiency fundamental for maintaining the current level of competitiveness by establishing improvement in Production Efficiency and EBITDA as criteria for the payment of the new Performance Bonus The individual Attendance Score is considered together with these parameters The 2016 Performance Bonus in its first year of application was 20 higher than that paid in 2015 In addition in response to employees requests the Company increased the number of approved canteens extending the choice available and also introduced weekly laundering of work clothing for all production workersWith regard to applications for severance pay advances the Company confirms its commitment to continuing the policy implemented so far
Training
Florim believes that in-house training plays a key role in the companyrsquos development and provides a tool for stimulating and fulfilling the potential of its human resourcesMore than 10600 training hours were provided in 2016 to 847 people with an average of more than 11 hours of training per employee New projects included a 6-month on-line English language course which attracted a large number of participants and two highly structured training courses for the sales division and the communication department A retraining program for workers at the Mordano plant was also completed it comprised 4 technical courses attended by 31 people for an average of 13 hours per person Another new entry for 2016 was an innovative procedure for acquiring information about training needs using an on-line questionnaire available to all employees as well as line managers specific recommendations The Master in Florim project is discussed in depth in the specific section
Health and Safety
Florim was the first Italian ceramics manufacturer to receive BS OHSAS 18001 (Occupational Health amp Safety Assessment Series) certification from TUumlV this international standard certifies the implementation of an internal management system oriented towards occupational health and safetyThis major award confirms the companys constant commitment to the well-being of its employees Every year in addition to engineering inspections and machinery maintenance a number of hours of safety training are organised to raise awareness among workers and supervisors Specifically in 2016 2849 hours were dedicated to safety training and a significant reduction in injury rates was recordedMoreover BLSD refresher courses are continuously held for the team of Florim employees trained in first-aid operations and the use of the defibrillators available on site
2012 2013 2014 2015 2016
Number of workplace injuries 63 62 74 56 43
2016 Sustainability Report 29
The Master in Florim organized for the fourth time in 2016 is a vocational training project which aims to bridge the gap between education (high school or university) and the world of work The program which is one of the companys Social Responsibility projects sets out to help young people to get to know the company through a well structured work experience plan It offers a distinctively northern European approach with a method which alternates classroom teaching with internships in the various areas of the company Participants new university or high school graduates specialising in various subjects all below 30 years of age are therefore able to gain hands-on experience of all Florim departments from RampD to the production process and product distribution for an all-inclusive vision The MASTER courses ambitious aim is to match the individual participants talents with the companys real needs At the end of each edition the company hires all or some of the selected candidates enabling it to acquire new skills new experiences and new energy
Master 40 in figures
20 young people taking part6 months of training13 external lecturers264 hours of classroom teaching392 hours of practical training4 company visits (Ferrari Tetrapak Cremonini and Ducati)50 days of work experience on rotation involving 15 departments1 month of project work
The projects prestige is enhanced by its economic context since Florim pays the young participants for the entire period and its aim is to deal with the thorny problem of youth unemployment The Master has won approval from various faculties at major Italian universities The project was also a winner in the Emilia-Romagna Regions 2016 awards for Corporate Social Responsibility projects run in the local community A prize in the ldquoBusiness and Educationrdquo category was assigned to the Master project which aims to give young people the skills required for sustainable development
Master in Florim
2016 Sustainability Report
Watch the videoof the 4th edition
2016 Sustainability Report30
Local Community amp Culture
This chapter describes a number of programs Florim runs for the local community in the area where it originated and where it has been working for more than 50 years
Politecnico di Milano
Since the 20052006 academic year Florim has been a partner sponsor of a large number of Postgraduate Courses run by POLIDesign the Politecnico di Milano consortium which organizes its Master Degree coursesAlso in association with POLIDesign since 2012 Florims Milan showroom has hosted several design events for architects and designers of every nationality
Aziende modenesi per la RSI
ldquoAziende Modenesi per la RSIrdquo an independent open inclusive association of companies in the Modena area which believe in the principles and values of Corporate Social Responsibility was established by public deed on 30 September 2014 with Florim as a founding member Florim hosts the associations member companies every year to discuss the various topics proposed
Premio Lucchese
The Premio Lucchese presented for the twenty-ninth time in 2016 was established in memory of Giovanni Lucchese and consists of scholarships awarded to students at the ldquoAlessandro Voltardquo Technical High School in Sassuolo who graduate with full marks The award ceremony held every year at the Florim Gallery in association with Societagrave Ceramica Italiana of Bologna includes a talk given by a leading personality on a topic of current interest to an audience of eager young listeners
Intrapresaelig Collezione Guggenheim
As befits a company that combines the values of its local community and historic and artistic heritage with a flair for research and innovation Florim recently launched a partnership with the Peggy Guggenheim Collection Since its foundation Florim has always had a unique ability to incorporate the true cultural significance of its industry in its business model and by this project once again confirms its commitment to promoting art by supporting a collection of extraordinary beauty
Fondazione Ing Giovanni Lucchese
More than thirty years after the untimely death of Giovanni Lucchese ndash founder of what was then Floor Gres currently Florim ndash in 2013 his family established a Foundation in his name which since then has funded organizations and associations that support families in need in the ceramics district The Foundation also supports a variety of projects such as the summer play scheme for employees children the Premio Lucchese and the Florim HealthampTraining Center described in more detail below
The main projects undertaken in 2016 include the funding of the purchase of 10 defibrillators for the Municipality of Fiorano and the contributions made to the purchase of paediatric ambulances for the local area and to support the Parish charitable organizations and social services in the district
Watch the Premio Lucchese video
The project run jointly by Florim and Sassuolo Hospital adopts a completely new model combining industrial culture and healthcare in an original way to benefit the local people and community thanks to the coming-together of a ceramic coverings manufacturer and the public-private joint venture Ospedale di Sassuolo Spa Florim HealthampTraining is the synthesis of this idea an experimental center which promotes local training for healthcare and other staff health education and information advanced medical simulation and research
The Center
On the main Florim site and opened on 16 April 2014 the Center is 550 square meters in area and contains a modular lecture theatre able to seat over 100 people and a number of classrooms for seminars and lessons At its heart is a state-of-the-art control room crammed with technology that operates dummies capable of reproducing human functions of all kinds Advanced simulation is a major aid to maintaining the skills of emergency healthcare workers with a particular focus on pediatric and neonatal resuscitation
Health meetings
Designed as a space for community use the Center also aims to become a place where all sections of the population - workers schoolchildren parents teachers volunteers and even just members of the public - can learn about preventive health care and acquire first aid skills After the distribution to Florim employees of a questionnaire surveying their training needs and preferences a Center Scientific Committee of Sassuolo Hospital medical personnel was appointed and drew up a plan of bi-monthly ldquoHealth meetingsrdquo All meetings are led by doctors with expertise in the various topics who answer the many questions from the audience at the end of their talks Between its opening and the end of December 2016 the Center hosted 13 meetings on a variety of topics attended by about 1000 people including employees their family members and the community at large
Healthcare discounts for Florim employees
The project also includes a major welfare program for all Florim employees and their family members entitling them to discounts and shorter waiting times for specialist examinations and outpatient diagnostic tests performed on a private basis
American Heart Association
The world-famous American Heart Association (AHA) is the oldest and most respected American voluntary organization dedicated to the fight against cardiovascular diseases and strokes In 2015 the AHA via the Simaid International Training Center named the Florim HealthampTraining Center as an Authorized Training Site for basic and advanced cardiopulmonary resuscitation
Florim HealthampTraining Center
2016 Sustainability Report
Watch the Health amp Training Center video
2016 Sustainability Report32
Product Responsibility
Here we summarize the concept of Made in Florim denoting a product that encapsulates the companys core values passion innovation a constant commitment to improvement and corporate social responsibility
Florim product certifications
CE Marking guarantees the user that the materials purchased meet the requirements of the relevant regulations and that the characteristics concerned are virtually unchanged for all production lots It is a declaration of conformity which protects the consumerrsquos safety The presence of the CE Marking on packaging guarantees that Florim products comply with the relevant regulatory requirements
Ecolabel (EC Regulation 662010) is a certification granted to products which comply with ecological and performance criteria set at a European level concerning raw material extraction supplier selection manufacturing processes packaging distribution use and disposal The certified Florim collections are Architech Ecotech Reverse Walks 10 by Floor Gres and Pietra del Nord under the Rex brand
Several ceramic tile collections bearing the Florim brands have earned certification from Bureau Veritas for their pre-consumer recycled material content These articles are therefore fully eco-compatible and can meet the environmental sustainability requirements imposed by many international certifications
Florim is a member of the US Green Building Council (USGBC) the most important association which promotes the reduction of buildings negative impact on the environment To allow the effective monitoring a projects level of sustainability the USGBC has developed a certification procedure for the development of sustainable buildings which assess and certifies the sustainability of a building in its entirety Florim materials are able to help to gain LEED points in a number of areas (data available on the Florim brand websites)
Florim has achieved the prestigious Greenguard certification for all its products Issued by the American body UL Environment this certification aims to reduce indoor pollution caused by interior design systems and materials UL Environment thus aims to protect health by improving air quality and reducing peoples exposure to chemicals and other pollutants Florim has also achieved Greenguard Gold Certification which imposes even stricter limits to confirm that a given product is suitable for use even in locations such as schools and health care facilities
The EPD or Environmental Product Declaration is a document which defines the environmental impacts arising from production In 2016 Florim participated in the study - certified by the German organization IBU - performed on the ceramics industry average data which aims to raise international awareness of the excellence of the environmental standards achieved
Beyond the standardsMade in Florim products are a guarantee of safety highly innovative content and eco-friendliness The people who produce them work in a safe place and in ethically sustainable conditions Due to their nature all Florim products are guaranteed free from pollutant emissions do not accumulate electrostatic charges are frostproof and completely inert and are undamaged by contact with flames The Groups Internet sites and collection catalogues contain the technical data sheets which detail the product information (slip-resistance breaking strain abrasion resistance etc) for every collection as well as its recycled material content with the relative certificates
During the period under consideration no banned products were placed on the market and the company was not found guilty of any breaches of the law with regard to data protection or its marketing and communication activities
EU Ecolabel nr IT2104
2016 Sustainability Report 33
Quality SystemThe current ISO 9001 standards define quality as the ability to satisfy explicit or implicit needs via a product or a service A Quality System implies constant improvement of company processes in order to realise products that always satisfy the customerrsquos needs Further to the 2016 audit Florim obtained the renewal of its UNI EN ISO 90012015 certification for the design manufacture and sale of all categories of ceramic tile
Objective Indicator 2012 2013 2014 2015 2016
Continual improvement of control of the production process
Percentage of First Grade Product ()
924 943 942 952 956
Quality rate () 883 905 903 905 909
Scrap rate () 44 41 42 42 49
Productivity (sq mhour) 186 188 186 190 200
Improvements in sales performance and customer satisfaction
Innovation rate () 330 296 367 455 364
Coverage () 795 714 814 813 816
Total portfolio shippable within one month ()
911 837 888 893 897
Optimization of range and stocks
Obsolete stock () 172 126 165 120 69
Stock turnover rate () 13 15 16 15 16
Gradual elimination of disputes complaints and claims concerning service
Square meters affected by complaints ()
17 12 08 12 09
Complaints by number of order items ()
10 11 11 10 10
Gradual improvement in staff skill levels
Employee turnover () 15 23 04 04 12
KeyPercentage of first grade product percentage ratio between the square meters of first grade products and the total square meters transferred to stockQuality rate percentage ratio between the square meters of first grade product transferred to stock and the square meters leaving the pressesScrap rate percentage difference between square meters of material leaving the presses and square meters of product actually transferred to stockProductivity ratio between the square meters transferred to stock and the total hours worked in the plantInnovation rate ratio between square meters sold belonging to series designed in the last three years and total square meters sold Florim uses this indicator to assess the effectiveness of its design process in terms of salesCoverage percentage ratio between square meters available for immediate shipment and the square meters on orderTotal portfolio of orders shippable within one month percentage ratio between the square meters which can be shipped in 30 days and the square meters on orderObsolete stock percentage ratio between the square meters of substandard discontinued produce and the total square meters in stock Stock turnover rate ratio between the square meters sold and the square meters in stockSquare meters affected by complaints percentage ratio between the square meters affected by complaints and the square meters soldComplaints by number of order items percentage ratio between the number of complaints and the number of items orderedEmployee turnover percentage ratio between the number of employees leaving the company and being replaced and the workforce at the start of the year
2016 Sustainability Report34
Casamood - Neutra 60 Collection
2016 Sustainability Report 35
OUR COMMITMENTS
The promises we keptIn our last Sustainability Report we committed to achieving a large number of objectives the following are the outcomes we attained
Relaunch of the ldquoCEDIT ndash Ceramiche drsquoItaliardquo brand OBJECTIVE ACHIEVED
Launch of the FLORIM stone brand OBJECTIVE ACHIEVED
Installation of a new latest-generation kiln at the Mordano plant OBJECTIVE ACHIEVED
Transfer of the Moscow showroom to new premises SCHEDULED FOR 2017
Creation of a new gatehouse at the Mordano plantOBJECTIVE POSTPONED TO GIVE PRIORITY TO THE CONSTRUCTION OF THE NEW FACTORY
Introduction of ERP system at Florim USA OBJECTIVE ACHIEVED
Installation of a new spray dryer and raw material handling system at Florim USA
OBJECTIVE ACHIEVED
Economic Responsibility
Renewal of certification of the Florim environmental and energy management system
OBJECTIVE ACHIEVED
Award of new certifications for collections manufactured with a high recycled material content
OBJECTIVE ACHIEVED
Continuation of work to reduce environmental impacts at Mordano especially with the reduction of energy costs
OBJECTIVE ACHIEVED
Continuation of the work to remove asbestos cement roofing materials at the Mordano plant
OBJECTIVE ACHIEVED
Expansion of the system which conveys rainwater to the treatment plant OBJECTIVE ACHIEVED
Reduction of the noise emissions of the air filtering systems OBJECTIVE ACHIEVED
Increase of recycling targets through constant awareness-raising amongst all staff and optimisation of recycling facilities
OBJECTIVE ACHIEVED
Continuation of replacement of the diesel forklift trucks for use on outdoor yards with electric vehicles
OBJECTIVE ACHIEVED
Environmental Responsibility
Running of fourth edition of Master Florim course with new procedures OBJECTIVE ACHIEVED
Creation of an internal refreshment area for the Fiorano office staff OBJECTIVE ACHIEVED
Improvement of corporate welfare through the activation of new free services and discounts tailored to employees needs
OBJECTIVE ACHIEVED
Continuation of the health meetings for the local community in association with Ospedale di Sassuolo Spa
OBJECTIVE ACHIEVED
Organization of new community events at Florim Gallery OBJECTIVE ACHIEVED
Organization of Florim Family Day 2016 A PARTY WAS ORGANISED FOR EMPLOYEES
Social Responsibility
2016 Sustainability Report36
The targets we set for ourselvesWe aim to achieve the following objectives in 2017
Economic Responsibility
Construction of a new factory at Mordano to produce large slabs
Launch of the project to unite the Florim spa sales organizations
Total restyling of the corporate and brand Internet sites
Launch of the HUB project - Intranet CRM Marketing Automation
New plants at Florim USA a press two sorting lines a polishing and rectifying line
New working spaces and cloakrooms for technical staff at the American plant
Environmental Responsibility
Purchase of a new cogenerator for the Mordano plant
Introduction of a new rainwater collection system at Fiorano
Land reclamation project involving covering of the Rio Spezzano stream at Fiorano
Implementation of new software for continual monitoring of energy impacts at Fiorano
Modernisation of the compressor room to improve energy impacts at Mordano
Increase of recycling targets through constant awareness-raising amongst all staff and optimisation of recycling facilities
Continuation of replacement of the diesel forklift trucks for use on outdoor yards with electric vehicles
Social Responsibility
Improvement of corporate welfare through the activation of new free services and discounts tailored to employees needs
Continuation of the health meetings for the local community in association with Ospedale di Sassuolo Spa
Organization of new community events at Florim Gallery
Organization of a new event for Florim spa employees
New offices for hospitality and events staff at Fiorano
2016 Sustainability Report 37
FLORIM USA
Profile and Economic ResponsibilityFlorim USA with registered office at Clarksville - Tennessee - and its subsidiary Florim Solution Inc have been part of the Florim Group since 2000 The Florim USA manufacturing plant one of the largest most technologically advanced in the United States produces porcelain stoneware tiles for the residential market and undertakes commercial projects in North America During the last few years Florim USA has implemented a growth and process optimization strategy which has generated significant technological progress with more innovations planned for the future The strategy adopted will put Florim USA at the worldwide state of the art in porcelain stoneware tile manufacture
In 2016 of the 18 million USD invested 147 was allocated for installation of a latest-generation raw material handling system and a large spray-dryer with an innovative sorting system Improvements were made to other parts of the process to increase their efficiency leading to a further reduction in emissions and scrap rates Additional investments are planned during 2017 to continue this dual trend of rising production with mitigation of environmental impact
The new Florim Flagship Store in New York (152 Madison Avenue 32nd Street)
2016 Sustainability Report38
Environmental ResponsibilityFlorim USA implements the same environmental policy as Florim and is committed to achieving the following objectives
bull reduction of the energy used in the production processbull improvement of the waste management process with a focus on recovery and reusebull introduction of new more eco-efficient technologiesbull adoption of integrated management systems
Florim USA has been pursuing a strategy of careful management of its operations and environmental impact for a number of years Here we summarise the main actions taken and the results achieved in 2016
bull installation of a latest-generation spray-dryer in 2016bull installation of an innovative raw material handling system in 2016bull 100 recycling of wastewater within the processbull optimisation of the management of water bottles with elimination of about 34200 of them per annumbull reuse of almost all production scrap (+99)bull 157000 kg of cardboard recycled in 2016bull award of two different types of product certificationbull 9300 kg of plastic recycledbull recycling of 17 complete trucks of pallets
Environmental Projects and Awards
Florim USA has received Clarksville Montgomery County Green Certification (CMCGC) CMCGC is a program designed to help companies learn and implement best practices in the area of environmental stewardship to sustain the local communityrsquos resources through a series of free workshops taught by local environmental specialists Since 2014 Florim has allocated some of its Environment Managers time for the running of these workshopsFlorim USA earned this green company certification thanks to a large number of projects first and foremost the one which eliminated the use of disposable water bottles replaced with individual reusable bottles provided by the company and a series of fill-up stations About 34200 bottles are removed from the waste cycle every year
During the latest phase of its plant optimization Florim USA has implemented a thorough construction material reuse policy In the various stages of demolition of the old plants including the old storage silos the concrete debris was recovered and reused in other construction worksThis project alone generated 11500 tons of recycled aggregate as well as several hundred tonnes of metal sold to a recycling firm
Environmental management system and eco-compatible products
Florim USArsquos products help builders and designers to meet the requirements for sustainable buildings as defined by the United States Green Building Council (USGBC) through the LEED Green Building Rating System This protocol evaluates and certifies the environmental sustainability of a building as a unit from its design to its day to day management To gain LEED credits many of the Florim USA product lines contain a significant percentage of recycled material (40 or more)This feature contributes to an increase in the LEED score in the projects where these products are installed In 2014 Florim USA together with a large number of other US tile manufacturers and the Tile Council of North America drew up a type III environmental product declaration (EPD) certified under the ISO 14025 standard This ceramic tile life-cycle analysis enables Florim USA products to gain LEED points under the new LEED v4 protocol
2016 Sustainability Report 39
Water use (gallonsper million square feetof finished tiles)
208137 216246 204962 195280 194268
Energy use
2012 2013 2014 2015 2016
Cubic feet of natural gas per million square feet of finished tiles 9343383 9149721 8331170 8390503 8380000
kWh per million square feet of finished tiles 510972 491171 450594 465976 490300
Emissions
Particulate material lt 21024 tonnes per annum
SO2 (sulphur dioxide) lt 1674 tonnes per annum
VOC (volatile organic compounds) lt 1245 tonnes per annum
NOx (oxides of nitrogen) lt 1501 tonnes per annum
Environmental performance indicators ndash summary
The following are the main environmental indicators related to the impact and performance of Florim USA during 2016
Pre-consumer recycled material
Its internal material recycling processes enable the company to minimise its environmental impact since most of the material which would otherwise be sent to landfills or other waste treatment centers is reusedbull Wastewater is entirely recycled within the production process without any discharge into the municipal drainsbull The material in the collection bags from the tile body and glaze preparation areas the press and glaze application is entirely recycled within the processbull All scrap fired tiles are entirely recycled within the processbull 157000 kg of cardboard was sold to an external recycled material dealerbull 17 trucks of unusable wooden pallets were sold to a pallet regeneration companybull About 9300 kg of waste shrink-wrap plastic film was recovered and recycled
Post-consumer recycled material
About 82000 kg of glass was removed from the flow of waste destined for the local landfill and recycled within the process Florim USA has signed an agreement with the local landfill for consignment of all the glass it handles which is collected and set aside for recycling
Water use disposal and reuse
The water used during the production process is recycled continually therefore no water is discharged into the municipal drains
The 2016 emissions figures are in line with those for previous years well below the standards laid down
Water use 2012 2013 2014 2015 2016
Water use (gallons per million square feet of finished tiles) 216246 204962 195280 194268 203928
2016 Sustainability Report40
Social Responsibility
Employees
The Florim USA workforce comprises 348 staff employed at the production site the Clarksville and Nashville outlet stores and the Florim Solution offices Of the 348 employees 273 are blue-collar workers and 75 office staff 5 employees are Italians on secondment to the United States Florim USA offers a number of benefits to full time employeesbull health and dental care insurancebull Vision insurancebull life insurance for employees and optionally for family membersbull temporary and permanent disability supportbull employee pension plan
2012 2013 2014 2015 2016
Workplace injuries 50 41 22 29 27
The Employee Assistance Program (EAP) also offers support to employees and their families in the event of psychological difficulty or other problems that can have a negative impact on their quality of life Florim USA supports all the costs of the program
Equal opportunities
Florim USA provides equal opportunities in all employment practices to all qualified employees and applicants regardless of race colour religion gender national origin age disability or membership of the armed forces or any other category protected by federal state or local laws
Health and safety
FLORIM USA is committed to ensuring a safe healthy workplace for all employees It therefore replaces old and obsolete equipment with new technologically more modern machinery and updates safety plans as new information gradually becomes availableAs well as an internal supervisor Florim USA has also appointed a health and safety committee which constantly monitors the plans effectiveness and makes any changes requiredThere are currently 20 plant employees who hold CPRfirst aid qualifications They occupy a variety of positions and work different shifts within the plant and have volunteered to attend training courses sponsored by the company for the award of these qualifications
Training
In 2016 every Florim USA employee attended an average of about 25 hours of training The training provided covered the operating procedures for the new equipment the main safety plans and the procedures for use of existing equipment for new employeesAll new staff undergo specific training for their department focusing on the safety-related aspects of the department concerned as well as more generalized safety training
Some of these themes includebull safe correct use of forklift trucksbull training on work in confined spacesbull shutdownwarning procedures and safe electrical practicesbull safe lifting procedures
2016 Sustainability Report 41
Florim USA ndash (Clarksville Tennessee)
For employees wishing to continue their education Florim USA offers assistance through the Educational Assistance Program It provides aid with the cost of education and textbooks and is available for any employee wishing to study for a technical qualification a diploma or a degreeThe plant staff training and education plan also includes various training schemes at Florim Italy where employees are instructed in the use of new equipment before it is installed at the American plantThroughout 2016 Florim USA will continue to provide a free e-learning course on its website for architects engineers and contractors (AEC) to improve their knowledge of sustainable porcelain stoneware tiles
Employee welfare activities
Florim USA employee picnic - In 2016 the company once again held its annual picnic for employees offering them a wide variety of foods games activities and live shows in an event which provided an unforgettable days enjoyment Within the event participants received prizes in the form of vouchers and gifts
Employee anniversary dinner - 2016 again saw the usual dinner to honour Florim USA employees with 5 10 15 20 or more years of service A special evening event was held in the presence of the Chairman and the other managers to celebrate the loyalty and hard work these employees have contributed during their careers with the firm
2016 Sustainability Report42
Local Community
During 2016 Florim USA continued to provide its support to a number of projects in its local areaSome of the main projects include
Scholarships - As part of its work to support the local community Florim has an established scheme which awards scholarships to deserving students at the Austin Peay State University in memory of Florim Group founder Giovanni Lucchese In December 2016 a delegation of Florim representatives attended a scholarship presentation lunch at the Austin Peay State University hosted by the President of the University
Montgomery County Green Certification Program - Florim USA staff actively participate in the Montgomery County Green Certification Program which aims to help companies learn and implement best practices with regard to safeguarding the environment and environmental resources
Donations - In 2016 the company again made a large number of donationsbull book collection for the Austin Peay State University Employees made a generous donation of used books in good condition for children and young people of the APSU in the hope of further promoting the education of future generationsbull to Community Cares the national organization that promotes the acceptance and social inclusion of individuals with Downs Syndromebull to the Aspire Clarksville Foundation a 501(c)(3) charitable foundation whose mission is to continuously improve the economy and the livability (quality of life) of the community by attracting significant capital investment and expansion by businesses and corporations thereby creating better opportunities and higher paying jobs for residentsbull to the Alzheimerrsquos Association a non-profit voluntary organization dedicated to the care and support of Alzheimers Disease sufferers and research into the condition Its aim is to eliminate the disease through the advancement of research to provide and enhance care and support for all affected and to reduce the risk of dementia through the promotion of brain health
Other activities - Every year Florim USA participates in the United Way Drive initiative to support local non-profit organizations which provide economic assistance and psychological support to persons in difficulty
Florim USA provides regular support to the Salvation Army by collecting canned foods for persons in needIn 2016 the company again organised a canned food collection for Manna Cafeacute in Clarksville TN Manna Cafeacute is a local non-profit organization based in Middle Tennessee with the primary mission of meeting peoples fundamental need for food before encouraging them to permanently change their lives for the better More than 15 of the population in Montgomery County are affected by food insecurity (about 28000 people) The percentage of children affected is about 215 a third of whom are excluded by income from federal programs such as free school mealsFinally donations were made tobull American Lung Association the leading organization working to save lives by improving lung health and preventing lung disease through research and educationbull Cheer for a Cure an organization that gives money directly to afflicting families who have a loved one suffering from cancer and need assistance to alleviate the added financial stressbull Habitat for Humanity Since 1992 Habitat for Humanity in Montgomery County Tennessee has worked with 93 low-income families with more than 210 children to revitalise various parts of Clarksville-Montgomery County by building new homes
2016 Sustainability Report 43
Quality SystemFlorim USA works under a Quality System certified to UNI EN ISO 9001 standards The following are some of the figures in brief
Objective Indicator 2012 2013 2014 2015 2016
Optimisation of control of the production process
Percentage of First Grade Product ()
932 917 940 949 9510
Quality rate () 883 857 893 906 909
Scrap rate () 56 65 48 45 45
KeyPercentage of first grade product ratio between square feet of first grade material and total square feet transferred to stockQuality rate ratio between square feet of first grade material transferred to stock and square feet pressedScrap rate ratio between square feet pressed and square feet of product actually transferred to stock
Other ActivitiesFlorim USA and trade shows
In 2016 Florim USA participated at a number of shows and events including Coverings the AIA Tennessee Convention Hardscape North America Total Solutions Plus Neocon International Pool - Spa and Patio Expo These events targeted at the various categories of industry professionals such as dealers and designers gave Florim USA the opportunity to present its new range of indoor and outdoor products
Design Center
In December 2015 Florim USA opened a design center showroom in Nashville (TN) in a strategic location close to the airport and the city center With a spacious area to host individual CEU presentations and workshops this design center has the potential to be a major resource for local architects In 2016 it was also awarded the ldquoOutstanding Boothrdquo booth prize at the 33rd edition of the Annual Home Decorating and Remodeling Show The location is the ideal place for sharing ideas finding inspiration and putting professionals and architects in touch with each other
Florim Nashville Design Center
2016 Sustainability Report44
GRI International Sustainability Indicators SDGsThe information below illustrates the correspondence between the Florim (Italian companies) 2016 Sustainability Report the GRI-G4 guidelines and the icons of the Sustainable Development Goals (SDGs) definitively adopted by the United NationsA description of the SDGs is available at wwwglobalcompactnetworkorg
GRI indicators
Description Page Reference to SDGs
1 Strategy and Analysis
G4-1 Statement from the most senior decision-maker of the organization 5
2 Organization profile
G4-3 Name of the organization 2
G4-4 Primary brands products andor services 9
G4-5 Location of the organizations headquarters 9
G4-6 Number and names of the countries where the organization operates 9
G4-7 Nature of ownership and legal form 14
G4-8 Markets served 9
G4-9 Scale of the organization 8 8
G4-10 Significant changes regarding size structure or ownership 8
G4-11 Employees covered by National Collective Bargaining Agreement 27
G4-12 Describe the supply chain 16
G4-13Significant changes regarding the organizationrsquos size structure ownership or its supply chain
Reporting process
launched
G4-14 Precautionary principle 22
G4-15 List of external commitments in which the company is involved 22 32 33
G4-16 Associations or interest groups in which the company is involvedwwwflorimit gt
about us gt partnerships
3 Identified material aspects and boundaries
G4-18 Process used to define the report content 6
G4-19 Material aspects 16
G4-20 Boundaries of each material aspect 6
G4-21 Boundaries of each material aspect outside the organizationPartial reporting
(pages 6 16)
G4-22 Explanation of the effect of any restatements of information provided in previous reports 6
G4-23Significant changes from previous reporting periods in the scope boundaries or measurement methods
6
3 Stakeholder engagement
G4-24 List of stakeholders 15
G4-25 Identification of stakeholders 15
G4-26 Stakeholder engagement 6 16
G4-27 Key topics and concerns that have been raised through stakeholder engagement 16
4 Boundary of the Report
G4-28 Reporting period 6
G4-29 Date of publication 2
G4-30 Reporting cycle 6
G4-31 Contacts and addresses for additional information 46
5 GRI Content Index
G4-32 Reporting option chosen 6 7
G4-33 External assurance of ReportThe Report is not
externally assured
2016 Sustainability Report 45
GRI indicators
Description Page Reference to SDGs
6 Governance
G4-34 Governance structure 14
7 Ethics and integrity
G4-56 Values principles standards and norms of behavior 13 16
Economic performance indicators
EC1 Direct economic value generated and distributed 19 25789
EC5 Wages 27 158
EC7 Development and impact of infrastructure investments and services supported 23 24 31 257911
Environmental performance indicators
G4-EN2 Percentage of materials used that are recycled input materials 17 22 23 812
G4-EN3 Energy consumption within the organization 24 781213
G4-EN6 Reduction of energy consumption 17 24 71213
G4-EN7 Reductions in energy requirements of products and servicesPartial reporting
(page 22)71213
G4-EN8 Total water withdrawal by source 17 23 6
G4-EN10 Percentage and total volume of water recycled and reused 17 21 23 612
G4-EN11 Biodiversity 23 615
G4-EN15 Total indirect greenhouse gas emissions by weight 25 3121315
G4-EN16 Total indirect greenhouse gas emissions by weight 25 3121315
G4-EN19 Reduction of greenhouse gas emissions 8 24 1315
G4-EN21 NOx SOx and other significant air emissions 25 31215
G4-EN22 Total water discharge by quality and destination 23 6
G4-EN23 Total weight of waste by type 17 22 3612
G4-EN27 Impact mitigation of environmental impacts of products and services 23 68121315
G4-EN29 Monetary value of significant fines 22 16
G4-EN30 Significant environmental impacts of transporting products and goodsmaterialsPartial reporting
(page 25)111213
Social performance indicators
G4-LA1 Total number and rates of new employee hires and employee turnoverPartial reporting
(pages 17 27)8
G4-LA6 Workplace injury ratesPartial reporting
(page 17)38
G4-LA9 Average hours of training per year per employee 28 48
G4-LA12Composition of governance bodies and breakdown of employees according to gender age group etc
27 58
G4-LA13 Ratio of basic salary and total remuneration of women to men 27 5810
Society
G4-SO1 Operations with local community engagement 12 31 16
G4-SO3 Operations assessed for risks related to corruptionPartial reporting
(page 13)
Product responsibility
G4-PR1 Assessment of health and safety impacts for improvement 23 32
G4-PR3 Type of information about products and services required by the procedures 32 12
G4-PR5 Proceedings relating to customer satisfaction including surveys conducted to measure it 33
G4-PR6 Sale of banned or disputed products 32
G4-PR8 Number of substantiated complaints regarding breaches of privacy 32 16
2016 Sustainability Report46
Your Assessment
You are kindly requested to take a few minutes of your time to give us your assessment and any suggestions to enable us to improve future editions of our Sustainability Report
Click here to send us your feedback
To keep up to date with our business
Spazio CEDIT - interior (Milan)
wwwflorimiten
Florim Ceramiche
Florim4Architects
Florim_ceramiche
Florim Ceramiche spa
Florim Ceramiche
Florim Ceramiche
For any further information please feel free to contact our communications department comunicazioneflorimit
2016 Sustainability Report 47
Premio Lucchese - Florim Gallery (Fiorano Modenese - Modena Italy)
Intrapresaelig Guggenheim Collection - Massimo Bottura in Florim Gallery (Fiorano Modenese - Modena Italy)
Panathlon Christmas Gala - Florim Gallery (Fiorano Modenese - Modena Italy)
2016 Sustainability Report48
White Christmas Party - Florim Gallery (Fiorano Modenese - Modena Italy)
Cersaie - Mario Biondi in Florim Gallery (Fiorano Modenese - Modena Italy)
Dal buio alla luce - Social event at Florim Gallery (Fiorano Modenese - Modena Italy)
2016 Sustainability Report 49
Florim Gallery entrance (Fiorano Modenese - MO)
2016 Sustainability Report52
Florim Ceramiche spaVia Canaletto 24 - 41042 Fiorano Modenese (Modena Italy) - Tel +39 0536 840111 - wwwflorimit
2016 Sustainability Report 9
Our Locations The map shows the grouprsquos headquarters showrooms production plants and logistic hubsFlorim brand products are available from top international customers and importers
Our Brands
Floor Gres is the brand specifically for innovative architectural projects The Floor Gres product range meets all the many and varied needs of contemporary architecture in terms of design and technical capabilities and environmental standards
Rex is the brand which denotes stylistic excellence with products inspired by precious natural materials (wood marble and stone) coordinated floor and wall coverings in which the surfaces interact to generate a new language in home design
Cerim is the brand that focuses primarily on color and on decoration Coverings designed on an integral basis to make the most of all parts of the home and offer solutions that adapt to the most diverse interior design contexts
Casa dolce casa and Casamood is the brand intended for high-end architecture and interior design and offers attractively blended colours and surfaces drawn from nature for the creation of warm interiors A range of matching colours and surfaces that combines porcelain stoneware with other types of materials Architectural design effects are blended with the language of interior decoration to create new types of relationships
CEDIT - Ceramiche drsquoItalia embodies the dialogue between art craftsmanship and technology The brand that shapes ceramic matter in the service of creativity allowing leading names of our time to express themselves to their full potential Large designer slabs that renew the concept of architectural space
FLORIM stone is the brand that combines performance and practicality with the utmost personalization of spaces Large porcelain stoneware slabs at the service of interior design professionals delivering creative flexibility with outstanding technical performances and appearance values
Florim USA is the brand of the American subsidiary its porcelain stoneware tiles for residential and commercial use manufactured in the plant at Clarksville (Tennessee) are tailored to suit the tastes of the largest possible segment of the North American market
FLORIM USASite production plant and logistics hubClarksville TN (USA)
Flagship StoreNew York NY (USA)
Logistics hubParanagrave (BRAZIL)
OceSingapore (SINGAPORE)
Flagship StoreMoscow (RUSSIA)
Site production plant and logistics hubFiorano Modenese (Modena ITALY)Production plantMordano (Bologna ITALY)
- Flagship Store- Spazio CEDITMilan (ITALY)
2016 Sustainability Report10
Our Design ServiceAs well as the product itself Florim offers a unique level of technical support throughout the various design phases From the feasibility study to the final installation Florim Solutions works side by side with the architect providing skills and experience whenever the style and performance of porcelain tiles become fundamental to the project In the age of speed and the digital revolution the company has also created an integrated web platform to give its professional partners unbeatable service Exclusive events visibility for projects free training meetings and specific competitions are just some of the services offered by Florim4Architectscom
Expo Azerbajan Pavilion winner of the Florim4Architects ldquoProject of the Yearrdquo competition
2016 Sustainability Report 11
Our 2016In this section we focus on the latest news from the Group covering a wide variety of aspects but all confirming the importance of Florims large slabs and once again underlining the centrality of innovation for the companys business
New brands
In April Florim chose the Salone Internazionale del Mobile a major event for the global design community for the relaunch of the CEDIT - Ceramiche drsquoItalia brand The brand which has always had links with leading artists designers and architects has achieved a superlative creative standard over more than fifty years of experimentation with materials and stylistic research in ceramic design CEDIT is returning to the forefront of Italian manufacturing in partnership with some of contemporary Italys top creative names Its new identity is a fine blend of Craftsmanship and Innovation expressed on the large slabs produced by Florim technology December saw the official opening - in the heart of Milan - of the first Spazio CEDIT the tangible expression of an innovative display concept created to convey the brands philosophy to the world
The brand created to explore new application solutions reaching beyond the conventional construction concept is called FLORIM stone Launched at Cersaie - the biggest ceramics industry show - this brand combines the outstanding performances of porcelain stoneware with the utmost personalisation of spaces The dimensional and functional plus factors of latest-generation large slabs allow stoneware to be used in a versatile customized way not just as a wall and floor covering but also for tops and furnishings (tables kitchen worktops and bathroom counters doors and fireplaces are just some of the possible applications)
New look
A busy year partly due to the refurbishment of the Fiorano Modenese headquarters As well as the new gatehouse the faccedilade of the office building was also restyled bringing it up to date with an all-white lookAn innovative modification at the technological state of the art was made to the raw material shed with a ventilated faccedilade of almost 1900 msup2 of Magnum Oversize large slabs The installation reproduces the ldquoArcheologierdquo collection (designed by artist Franco Guerzoni for CEDIT) and the lake of Vernago in Italys Alto Adige region (photo by Vanni Borghi) A latest-generation project leading the way in technology safety and maintenanceLast but not least a new barrier was also designed and constructed to separate the Florim property from the SFrancesco road It took 3 months to erect a boundary fence of about 340 meters of double-sided porcelain stoneware slabs 180 cm high and 265 cm wide supported by a steel frame With a total of 1122 slabs the fence was designed to withstand weather earthquakes and the forces generated by traffic passing at high speeds Installed at different angles the slabs create attractive effects with light and shade demonstrating the importance of sophisticated aesthetics to the companys identity
New Awards
Florims large slabs are the featured products in the various awards received and have been assigned one of the most important accolades in the design world with an Honourable Mention at the XXIV edition of the ADI Compasso drsquoOro awards
Just a few months after its launch the CEDIT brand also received major awards at the global level the NYCxDESIGN Award in New York the Hospitality Design Awards in New York ldquo100 Best of 2016rdquo at the Archiproducts Design Awards 2016 and the Best of the Best (April 2017) in the Design Product category at the coveted German Red Dot Design Award
More recognition came from the Emilia-Romagna Regions 2016 awards for Corporate Social Responsibility projects run in the local community A prize in the ldquoBusiness and Educationrdquo category was assigned to the Master in Florim project which aims to give young people the skills required for sustainable development
Learn moreabout CEDIT
Learn moreabout FLORIM stone
2016 Sustainability Report12
In the age of digital transformation Florim still believes in the importance of creating opportunities for meeting and exchanging ideas and in 2016 more than 12000 people came to the Florim Gallery (a multi-purpose space of 9000 msup2 at the Fiorano headquarters) Events of social usefulness workshops community projects and business occasions our training events and hospitality staff were busy on many different fronts It was also a major year for off-site events The Florim Flagship Store in Milan and the just-opened New York Flagship Store hosted more than 3200 people at events for architects and designers supported with important partnerships with POLIdesign and leading publishersFlorim also chose the world-famous Peggy Guggenheim Collection in Venice as the location for two exclusive events to highlight the partnership agreement signed with Guggenheim Intrapresaelig A dinner in the wonderful setting of the museums panoramic terrace followed speeches by distinguished guests Ettore Mocchetti Martino Gamper Domitilla Dardi Giorgia Zanellato Daniele Bortotto Franco Guerzoni and Benedetto Fasciana The final event of the year was held for the employees with a ldquoWhite Christmas Partyrdquo evening at a Florim Gallery decorated for the festive season
A year of Florim events
LrsquoArte del Design - Florim event at the Peggy Guggenheim Collection (Venice)
2016 Sustainability Report
View the Florim eventat the Guggenheim
2016 Sustainability Report 13
GOVERNANCE
Code of EthicsThe groups governance plays a central role in the responsible development of its business ensuring ethical transparent management of its operations with its stakeholders interests always in mind
After approving the Governance Model compliant with the provisions of Italian Legislative Decree 2312001 the Florim Board of Directors signed and promoted the corporate Code of Ethics (revised in June 2016) which has become an integral part of Florims business and is accepted by every new employee supplier and agentTo guarantee the application of and compliance with its contents a Supervisory Board was established to detect any breaches of its provisions All stakeholders can also contact the Supervisory Board (organismodivigilanzaflorimit) for further explanations regarding the interpretation and application of the corporate Code of Ethics as described on the corporate websiteThe following is an extract from the rules of conduct which govern the way we do business
Our mission
To manufacture ceramic tiles and materials for multiple uses and offer the most appropriate solutions for both interior design and architecture To constantly prioritise environmental sustainability attempting to satisfy the needs of customers and to create value for shareholders employees and the local community in compliance with the ethical principles and rules of conduct set out in the Code of Ethics
Our vision
To be at the cutting edge of technical and design innovation in ceramics by developing materials and production methods that position us as a constant benchmark for customers architects and competitors
Our values
Honesty and Respect all internal and external relationships must be based on honesty and respect for rules and dignity of the individual
Corporate Social Responsibility corporate social responsibility must be promoted through measures and practices adopted to support the local environment and community
Individual Responsibility everyone must be aware of the worth and consequences of their own actions
Quality and Innovation excellence must be pursued by improving products processes and skills to promote corporate success
Transparency intentions and positions must be expressed openly and clearly without misunderstandings or misrepresentation to build lasting relationships based on trust both inside and outside the company
Courage a moral strength which enables us to undertake and deal with changes difficulties and challenges to benefit from all the opportunities they offer
Feeling of Belonging feeling proud to be a part of one big team made up of the company associates customers and suppliers
Management System Policy
To achieve greater and greater transparency in its reporting the company has drawn up guidelines for its quality environment safety and energy management system Read more
2016 Sustainability Report14
Corporate BodiesFlorim Ceramiche spa is a family-run business with fully subscribed paid-up share capital consisting of 50000000 ordinary shares with a face value of 1 Euro each The capital is 100 owned by the holding company FinFloor spa with registered office in Fiorano Modenese which is in turn indirectly owned by the Lucchese family through Fin-Twin spa
The Board of Directors has 11 members
CLAUDIO LUCCHESE Chairman
DONATO BRUNI Deputy Chairman
MARIADELE LUCCHESE Director
ANNA LUCCHESE Director
FRANCESCA LUCCHESE Director
GIOVANNI LUCCHESE Director
The Board of Directors has a mandate of one year and new elections will coincide with the approval of the financial statements The Board of Statutory Auditors is composed of three members whose term of office is three years from their appointment on 1252016 until approval of the 2018 financial statements The financial statements of Florim spa and the consolidated financial statements of FinFloor spa and Fin-Twin spa are audited and certified by Deloitte spa
Corporate StructureThe changes to be noted since the previous financial statements include the incorporation of ldquoMordano 4 srlrdquo and amalgamation by acquisition of Maker srl in Florim Ceramiche spa
KRONOS 2 CERAMICHE spaShare capital euro 1646799
Fondazione Ing G LuccheseEndowment euro 60000
FABBRICA delle MATERIE srlShare capital euro 10000
EDIL FLOOR surlShare capital euro 9812681
ISABELLA srlShare capital euro 100000
FI HOLDING IncShare capital USD 50000
100
10
100
30
9667
100
1
1
99
99
100
FIN TWIN spaShare capital euro 540800
FINFLOOR spaShare capital euro 10500000
542810
FLORIM CERAMICHE spasingle shareholder companyShare capital euro 50000000
100
FLORIM BRASIL LtdaDISTRIBUICcedilAtildeO DE CERAcircMICAS Ltda
Share capital R$ 46100000
FLORIM RUSShare Capital 100000 Roubles
FLORIM USA incShare capital USD 51865541
FLORIM SOLUTION IncShare capital USD 845943
100
MORDANO 4 srlShare capital euro 100000
85
FLORIM FAR EAST PTE LtdShare capital S$ 10000
100
ERMES GIUSEPPE FERRARI Managing Director
GIOVANNI GROSSI Managing Director
OSCAR ISEPPI Managing Director
DORVAN SAZZI Managing Director
STEFANO TORRENTI Managing Director
2016 Sustainability Report 15
StakeholdersStakeholders are all individuals and groups who may influence or be influenced by a companys operations in terms of policies products and working processes shareholders employees customers and consumers suppliers local government the local community banks and trade unions
Employees and Trade Unions
Florim makes the following commitments to its employees
bull to guarantee equal opportunities fair pay and professional growth
bull to reward its human resources on the basis of transparent meritocratic criteria
bull to create safe working environments and processes
bull to guarantee transparency and clarity in contract conditions
bull to encourage dialogue and internal communications
Customers and Consumers
In dealing with its (retail) customers Florim is committed to
bull creating a relationship of trust as a stable basis for business
bull guaranteeing clarity in contracts and prices
bull guaranteeing the reliability of its products and developing customer service
bull offering innovative safe environmentally sustainable products
bull providing a diversified offering with services with high value added
The overall aim is also to satisfy the expectations and demands of the final consumer
Developers Architects and Interior Designers
To meet the needs of developers Florim is committed to
bull offering state-of-the-art solutions in terms of environmentally sustainability technology and design
bull establishing and fostering relationships with partner professionals
bull providing consulting and technical experience from the project concept through to installation
bull supplying turnkey solutions
Local Communities and Local Government
In its relationships with local communities and local institutions Florim is committed to
bull guaranteeing dialogue cooperation and transparency
bull giving value back to the local communities in the areas where it operates
bull continually improving the environmental performances of processes
bull researching developing and using the most sustainable technologies
bull making an economic contribution to local sporting and social projects for children and young people
Suppliers
When selecting its suppliers Florim pays close attention to companiesrsquo CSR practices Florims relationships with its suppliers are based on compliance with the values of its code of ethics otherwise contracts are automatically terminated Florim also guarantees certainty in payment times and compliance with contract terms provided the goods and services contracted are delivered as agreed
ERMES GIUSEPPE FERRARI Managing Director
GIOVANNI GROSSI Managing Director
OSCAR ISEPPI Managing Director
DORVAN SAZZI Managing Director
STEFANO TORRENTI Managing Director
2016 Sustainability Report16
Materiality ApproachIn 2015 the company began an internal analysis process based on the materiality principle in order to identify the sustainability issues of relevance both for the Group (including Florim USA) and for all stakeholders Materiality is the threshold above which a topic becomes sufficiently important to be included in the report In fact organizations are faced with a large number of topics on which they could report Relevant topics and indicators are those considered important for reflecting the organizations economic environmental and social impacts or which influence the decisions of its stakeholder and which therefore potentially merit inclusion in the report In accordance with the GRI ndash G4 Guidelines Florim has analyzed and identified relevant topics which were assessed by the working team which drafted the Sustainability Report on the basis of discussion with the main stakeholders The findings which emerged were supported by a qualitative survey external to the companys context examining an analysis of the press gallery (more than 650 articles) competitors Sustainability Reports the Emas Study of the Fiorano and Sassuolo Ceramics District and the GRI document ndash ldquoSustainability Topics for Sector What do Stakeholders want to knowrdquo
In the chart below the aspects found to be most important appear in the top right-hand corner and constitute a strategic priority for the Group The topics in the bottom left-hand corner such as biodiversity prevention of corruption and absence of discrimination are less relevant because they are easy for both the organization and stakeholders to manage and no problems have ever been reported over the years Similarly the protection of human rights is now taken for granted since Florim complies strictly with all the provisions of the National Employment Contract
Importance for stakeholders
Importance for Florim spa
low
m
ediu
m
high
low medium high
Biodiversity
Indirect economic impacts
Prevention of corruption
Market share
Absence of discrimination
Sustainable transport
management
Protection of Human Rights
Environment and safety
Water saving
Energy efficiencyRaw materials
Diversity and equal opportunities
Transparency of financial and other
information
Ethical supplier
management
Investments in the local community and social welfare
Direct and indirect environmental
impacts
Green products and
services
Economic performance
Quality of products offered to customers
Regulatory compliance
Development of human resources
and training
ENVIRONMENT
COMMUNITY
EMPLOYEESASSOCIATES
ECONOMIC PERFORMANCE
PRODUCT RESPONSIBILITY
HUMAN RIGHTS
2016 Sustainability Report 17
FinFloor consolidated (in thousands of Euro) 2012 2013 2014 2015 2016
Net earnings 315344 325853 329533 374094 406759
EBIDTA 59608 72986 84395 98115 107186
Operating result 35717 50996 58508 66255 71028
Gross cash flow 52710 68312 83274 97268 109148
Net profit 26103 35732 36433 43324 49347
Net financial indebtedness (127730) (96500) (54524) (27326) (12508)
Final inventory 95514 84432 90283 92795 96721
Net shareholders equity 186905 218847 276916 332721 369937
Total investments 32572 48780 41584 34215 53531
2012 2013 2014 2015 2016
Waste produced (t) 30228 21170 22300 30862 34423
Recycled third-party waste (t) 4028 4190 1721 2570 5627
Total water consumption (msup3) finished product (t) 075 075 078 069 071
Recycled water percentage 100 100 100 100 100
Self-generated energy in relation to consumption 67 68 62 65 75
Investments in environmental management (euro000) 13617 2493 1995 465 6400
2012 2013 2014 2015 2016
Number of employees at 3112 1037 992 984 982 987
Total number of training hours 14690 9124 9056 7176 10606
Number of training hours on environment and safety 7572 4514 4200 3008 2489
Number of workplace injuries 63 62 74 56 43
Environmental and social profile figures refer to Florim Italy for Florim USA please see the relevant section (from page 37)
REPORTING
In brief
Economic Profile
Environmental Profile
Social Profile
2016 Sustainability Report18
Economic Responsibility
Comments on 2016 Economic Data
The Groups 2016 results were again good from every point of view
Compared to the previous year turnover increased by 87 leading thanks to careful management of production costs to an EBITDA of Euro 1071 million equivalent to 263 of turnover and a profit after tax of Euro 493 million
The companys financial data also significantly improved with a net financial position of Euro 125 million compared to Euro 273 million at the end of 2015 in spite of record technical investments of Euro 535 million and financial investments of Euro 11 million
Once again underlying the results achieved were large investments in latest-generation machinery and technologies painstaking research to develop materials with exceptionally high technical and design content human resources and projects for the increasingly direct promotion of Florims image and quality standard
Investments
The technical investments made in 2016 amount to Euro 535 million while Euro 11 million was spent on reacquiring 100 ownership of Maker srl followed by its amalgamation with Florim spa on 31 December The most important industrial projects included the continuation of the work on the Mordano plant which involved investments of Euro 26 million for the restructuring of the raw material preparation area and the doubling of production capacity for traditional porcelain stonewareThe investments of US$ 18 million at Florim USA were utilised to complete the renewal of the raw material preparation area and construct a new building for the technical organizationFinally about 9 million Euro was invested at Fiorano on various production line modernization projects
A creative hub for design style and new trends Milan once again confirms that it is the ideal setting for Florims investments and the opening of the all-new ldquoSpazio CEDITrdquo confirms the companys determination to strengthen its bonds with design professionals working in high-end interior design The culture of beauty art architecture and design are all integral to the genetic make-up of CEDIT ndash the historic Italian brand relaunched by Florim in 2016 ndash and dominate the display areas and the first six ceramic covering collections styled by famous names on the contemporary creative sceneOn two levels with a total floor area of more than 200 msup2 the space maintains the same stylistic identity as the one at Fiorano Modenese since they are both constructed to an architectural design intended to be replicated in CEDIT customers showrooms worldwide
Spazio CEDIT Watch theinauguration video
2016 Sustainability Report 19
Economic Value Generated and Distributed
The figures for the economic value generated and distributed provide a simple clear explanation of how Florim has created wealth and redistributed it to its stakeholders The table below contains the data from Florims 2016 financial statements approved by the Board of Directors on 30 March and certified by external auditorsThe economic value directly generated is represented by the total earnings for 2016 while the economic value distributed includes the costs incurred for suppliers and employees payments to the state (taxes) and the donations which had positive repercussions for the community to which Florim spa belongs
Heading 2014 2015 2016
Revenues 253125 269855 302521
Direct economic value generated 253125 269855 302521
Operating costs 135735 150951 168809
Employee wages and benefits 56985 58149 62418
Payments to providers of capital 7413 6399 11903
Payments to government 15738 13162 15382
Community investments 221 212 240
Economic value distributed 216092 228873 258752
Economic value retained 37033 40982 43769
KeyRevenues net sales plus revenues from financial investments and sale of assetsOperating Costs payments to suppliers non-strategic investments royalties payment facilitationsEmployee wages and benefits employee wages and benefits per employees (current payments)Payments to providers of capital all payments to the organizations providers of capitalPayments to government gross taxes and dutiesCommunity investments voluntary donations and investments in the communityEconomic value retained calculated as economic value generated less economic value distributed
The data in the table are in thousands of Euro and refer to the consolidated financial statements of the Italian companies only
KBIS (USA) - detail of the stand created with ldquoI Classici di Rexrdquo
2016 Sustainability Report20
Casa dolce casa ndash Argille 20 Collection
2016 Sustainability Report 21
Environmental ResponsibilityEffective environmental policy management energy saving and emissions reduction are amongst Florims strategic sustainability objectives
Our green projects in figures
2 highly-regarded process certifications
ISO 14001 (ENVIRONMENT)and ISO 50001 (ENERGY)
849873 MWh is the amount of electricity the
company succeeded in producing in-house during 2016
2 departments (marketing and communications)
engaged on digitizing advertising tools
8462 tons of CO2 NOT emitted
CO2
100 is the percentage of wastewater recycled
16000 msup2of photovoltaic panels covering
an area of 30000 msup2
75 is the percentage of the electricity consumed which is
produced in-house
4 latest-generation industrial kilns installed in
the last 3 years
4 different types of environmental product
certification
2 cogeneration plants to increase energy saving
and efficiency
1 laboratory for the development of contemporary design projects with a specific focus on the materials green
content
100is the percentage recycling of
industrial greenware waste in the production process
2016 Sustainability Report22
Certifications
System and process certifications
UNI EN ISO 14001TUumlV has awarded Florim the highly-regarded UNI EN ISO 14001 voluntary certification which confirms its compliance with a series of internally certified procedures intended to improve the internal environmental management system The decision to seek this certification springs from the desire to reconcile quality with efficiency and productivity while protecting the environment and community in which the company operates
UNI EN ISO 50001Thanks to a careful energy management policy and aided by the latest investments in the production area also intended to improve energy efficiency Florim was the worlds first ceramics manufacturer to obtain ISO 50001 certification of its Energy Management System
In addition to its environmental certifications Florim has also been awarded prestigious AEO (Authorized Economic Operator) status
Further to a lengthy and demanding audit process by the Customs Authorities in 2016 Florim was awarded AEO certification the first company in the Province of Modena to receive this major form of approval Authorised Economic Operator status guarantees the companys absolute compliance with customs and security requirements in its foreign trade
Environmental Management
Waste 2012 2013 2014 2015 2016
Total waste produced (t) 30228 21170 22300 30862 34423
Non-dangerous recyclable waste (such as paper and cardboard fired scraps plastic glass and wood) ()
989 982 985 991 989
Non-dangerous disposed-of waste (such as the waste picked up by the motor sweepers) ()
02 04 02 02 02
Dangerous recyclable waste (such as spent oil batteries and monitors) ()
00 01 01 01 00
Dangerous disposed-of waste (such as spent lime) () 01 13 12 07 09
Third-party waste recycled within the production process (t) () 4028 4190 1721 2570 5627
Besides recycling greenware waste from its own production cycle (not included in the table because the amount cannot be calculated) Florim also recycles third party waste
Florims operations have always been oriented towards optimization of impact on the local community and environment Thanks to the work of its research laboratories the support of all staff and the recent investment plans tangible results have been achieved The data provided below reveal that in spite of an increase in production of 8 compared to the previous year consumption remains low The companys commitment to environmental protection is all-inclusive and also comprises a focus on the district within which it operates One example is the total removal of all asbestos cement from the Fiorano Modenese plant and the creation of the new recycling station opened in 2015 and donated to the Local Authority as a public serviceAs in previous years during 2016 Florim was not fined for any breaches of environmental regulations or laws
Florim recycles and optimises within the production process all greenware scraps dust residues from filters and sludge from the process and rectification wastewater treatment system The waste produced is detailed in the table the significant differences between years are due mainly to the major demolition and subsequent reconstruction works undertaken at the Italian plants
Waste Management
2016 Sustainability Report 23
Water Resources
No environmental impact of wastewater discharges is specified since all the water from the production cycle is completely reused (100) All other effluents comply with legal requirements
The figure states the total cubic meters of water used per ton of finished product The water used in the Fiorano production process is drawn from private company-owned wells with water from the public main only used for non-industrial purposes The Mordano plant is supplied by an industrial water main Water use is measured by means of meter readings Four highly innovative dry rectifying plants have gone into production at Mordano since 2015 enabling the company to eliminate the physicalchemical treatment of the water used in the rectification process
WATER USE
2012
08
2013
08
2014
08
2015
07Total water consumption (msup3) finished product (t)
07
2016
All packaging used for Florim materials is made from recycled paper and parts of the coverings used to protect pallets of finished products consist of recycled plastic Whats more all the packaging used (boxes cardboard shrink wraps pallets etc) can be completely recycled by the end user The latest investments made include new eco-friendly packaging machines increasing the number of these machines installed to 15 These plants completely eliminate waste due to leftover inventory saving significant amounts of cardboard
Packaging and Coverings
As the materiality assessment states Florim has no significant impacts on the biodiversity of its local area since the company is located inside the Fiorano Modenese ceramics manufacturing district at least 5 Km from the nearest nature reserve at Salse di Nirano Florim takes special care over the choice of the raw materials used for its tile body mixes of which it is required to provide documentation guaranteeing compliance with the European Directives protecting wild birds (EU Dir 79409EEC) and habitats (EU Dir 9243EEC) and the United Nations Convention on the protection of biodiversity It has also introduced a software program - used at the 3 production plants (Italy and the USA) - for the management of data on the origin of raw materials such as quarry location distance from the factory recycled content declaration technical safety and radioactive content data sheets and the expiry of the quarrying permit issued by the government
Raw Materials and Biodiversity
2016 Sustainability Report24
Energy Management
There is no disputing that large amounts of energy are required to power the production processes of ceramic tile plants with consequent direct and indirect impacts on the local area and the environmentThe main indicator used to measure plants energy performance is the mean specific total energy consumption (TEJ) measured in GJt of product transferred to stock As the table below shows this figure is obtained by adding together heat consumption (NGJ) and electricity used (EEJ)
Parameter ndash Definition Unit of measurement
2012 2013 2014 2015 2016
NGJ Mean specific natural gas consumption in relation to the unit of weight of finished product transferred to stock
GJt 557 571 576 578 598
EEJ Mean specific electricity consumption in relation to the unit of weight of product transferred to stock
GJt 111 108 111 108 107
TEJ Mean total specific energy consumption in relation to the unit of weight of product transferred to stock
GJt 668 679 686 685 705
Self-generated electricity as a proportion of consumption
67 68 62 65 75
With two cogeneration plants (for the combined in-house production of heat and electricity) and 16000 msup2 of photovoltaic panels the company certainly sets a new benchmark for the entire ceramic tile industry 2016 saw the replacement of the Fiorano turbine set (the main component of the cogeneration plant) while the one in Mordano was kept in operation 247 factors which led to a 10 increase in in-house electricity production in relation to consumption To provide a clearer idea of the scale of the achievement the amount of electricity the company generated in-house in 2016 (849873 MWh) would cover the average annual consumption of about 37000 households (With consumption per household of 229 MWh - data from the latest ISTAT survey in 2012ndash calculated on the Italian average)
Photovoltaic Plant
kWp kWh produced kg of CO2 not emitted
270021 15937250 8462680
Good Practice
The head office organizations are also optimizing paper and energy consumption In addition to issuing and distributing the energy saving handbook for its offices the company is also trying to maximize savings on the raw material used and specifically the use of paper Internally the company only purchases reams of paper which carry environmental certification and the paper used in offices is collected separately for proper disposal Externally the company distributes a system of merchandising products made mainly from recycled paper and encourages the gradual digitization of its marketing tools as well as publishing all its catalogues in digital format on its Internet sites Florim offers its distributor companies an innovative digital touch screen tool with the pdf versions of the catalogues and other tools for the final consumerIn 2016 Florim decided to adopt a new payslip distribution procedure introducing an online processing system As well as providing employees with new functions and greater operating flexibility thanks to this system the company no longer prints out the monthly payslips saving paper ink and energy The scheme initially involving all office workers has the ambitious target of also including the staff of the Fiorano and Mordano plants
The 16000 square meter photovoltaic plant received recognition from GSE (Energy Management Services) as one of the most innovative installations of its type and from its commissioning (October 2011) up to December 2016 it produced the following results
2016 Sustainability Report 25
Atmospheric Emissions
The industrial facility emits greenhouse gases basically CO2 from the following main sourcesbull combustion from the burning of fossil fuels (such as natural gas)bull processes from the minerals in the raw materials any organic matter in the clays used and any organic additives in tile body mixes
In order to comply with Directive 200387EC (ETS - Emission Trading Scheme) Florim has been reporting and certifying its CO2 emissions since 2013
CO2 emissions 2013 2014 2015 2016
CO2 emissions (t) 102728 103462 111862 132960
CO2 emissions (t) Finished product (t) 033 033 033 035
Emissions from the production cycle 2013 2014 2015 2016
Particulate material (gmsup2 finished product) 223 130 098 118
Lead (gmsup2 finished product) 000 000 000 000
Fluorine (gmsup2 finished product) 014 018 013 012
The increase in CO2 is due mainly to the large increase in the square meters produced (+ 8) and the 247 use of the cogeneration plant However it should be noted that the cogeneration plant provided a 10 increase in in-house electricity generation with lower CO2 emissions than electricity purchased from the grid produced mainly using fossil fuels (source ISPRA Fattori di emissione atmosferica di CO2 e sviluppo delle fonti rinnovabili nel settore elettrico Rapporti [Atmospheric CO2 Emission Factors and Development of Renewables in the Electricity Sector Reports] 2122015)The ratio between CO2 emissions and tons of finished product produced increased because in 2016 the sale of spray-dried material to other companies rose compared to the previous year (emissions from this phase are included in the emissions count but there is no corresponding output of finished product)
In a change from previous years the new GRI-G4 guidelines also require reporting of nitrogen oxide and sulphur oxide emissions Nitrogen oxide (NOx) emissions are within the limits permitted under the integrated environmental authorisation Sulphur oxide (SOx) emissions are not reported here since this figure is not required by the IEA
Transport
The materiality study reveals that transport is a significant factor for both stakeholders and Florim itself The company is not able to measure the impact of transportation of finished product on the local area since all shipments are ex-works However Florim which has been introducing electric vehicles to replace its oldest most obsolete unleaded petrol forklifts for years now has further optimized the handling of materials thanks to the new highly-automated logistics hub created at the via Canaletto location In 2016 about 53 of the vehicles used on the companys premises were electric with no direct greenhouse gas emissions
2016 Sustainability Report26
CEDIT ndash Creative Composition
2016 Sustainability Report 27
Workforce Composition
In 2016 the workforce included 27 people with disabilities 6 women and 21 menBearing in mind the job descriptions arising from the specific industrial sector the breakdown between men and women is in line with the industry average Male office workers and executives earn an average of 10 more than women for jobs of equal responsibility Among blue-collar workers the difference is 7 The company had a total of 29 foreign employees 24 at Fiorano and 5 at Mordano
Manager Executive Office worker
2013 2014 2015 2016 2013 2014 2015 2016 2013 2014 2015 2016
Women 2 3 3 3 3 1 1 1 137 142 133 149
Men 18 21 20 18 21 24 25 28 127 132 128 132
Total 20 24 23 21 24 25 26 29 264 274 261 281
Office ancillary Blue-collar worker Total
2013 2014 2015 2016 2013 2014 2015 2016 2013 2014 2015 2016
Women 18 16 25 19 226 219 212 196 385 381 375 368
Men 64 68 79 64 376 358 356 377 607 603 607 619
Total 82 84 104 83 602 577 568 573 992 984 982 987
Social Responsibility
Employees amp Corporate welfare
Its employees are the heart and soul of Florim they provide its character and its DNA Since 2009 when the current major economic crisis began Florim has undertaken a number of income support programs for its workforce Below we summarise some of the ongoing programmes and others run in 2016bull Ending of the Income Support Program for the Mordano plantbull Agreement with Sassuolo Hospital under which Florim employees and their family members enjoy discounts and shorter waiting times for specialist examinations and outpatient diagnostic tests performed on a private basisbull Special agreements with local health facilitiesbull Tax advice at special rates bull Special terms for banking services with financial consultants on-sitebull Discounts on the purchase of Florim products for employees homesbull Free entry to the Peggy Guggenheim Collection in Venice for employees and concessions for family membersbull Free provision of water and mineral salts in the plants during the summerbull Distribution of fuel vouchers to employees for the Christmas holidays
Summer Play Schemes and Cregraveches
In 2016 the summer play schemes for the children of employees at Fiorano and Mordano were continued for the fifth year in succession Seven different centers across the area between Modena and Bologna hosted 85 children (twice the number of the previous year) the company paid the fee for two weeks attendanceWhats more since 2013 the company has negotiated special terms with local cregraveches which now offer a number of places for employeesrsquo children at a reduced fee
2016 Sustainability Report28
Human Resources Management Policies
In July 2015 on renewal of the in-house supplement to the national employment contract the Management introduced a new phase in its relations with the Trade Unions with the aim of continuing and improving the good relationships enjoyed for decadesThe new company contract applied for all employees at the Fiorano headquarters includes more facilitations for part-time working the willingness to allow flexitime where feasible and the commitment to invest in staff training in order to generate full benefits from intellectual capital The company and the trades unions agreed on a plan to improve efficiency fundamental for maintaining the current level of competitiveness by establishing improvement in Production Efficiency and EBITDA as criteria for the payment of the new Performance Bonus The individual Attendance Score is considered together with these parameters The 2016 Performance Bonus in its first year of application was 20 higher than that paid in 2015 In addition in response to employees requests the Company increased the number of approved canteens extending the choice available and also introduced weekly laundering of work clothing for all production workersWith regard to applications for severance pay advances the Company confirms its commitment to continuing the policy implemented so far
Training
Florim believes that in-house training plays a key role in the companyrsquos development and provides a tool for stimulating and fulfilling the potential of its human resourcesMore than 10600 training hours were provided in 2016 to 847 people with an average of more than 11 hours of training per employee New projects included a 6-month on-line English language course which attracted a large number of participants and two highly structured training courses for the sales division and the communication department A retraining program for workers at the Mordano plant was also completed it comprised 4 technical courses attended by 31 people for an average of 13 hours per person Another new entry for 2016 was an innovative procedure for acquiring information about training needs using an on-line questionnaire available to all employees as well as line managers specific recommendations The Master in Florim project is discussed in depth in the specific section
Health and Safety
Florim was the first Italian ceramics manufacturer to receive BS OHSAS 18001 (Occupational Health amp Safety Assessment Series) certification from TUumlV this international standard certifies the implementation of an internal management system oriented towards occupational health and safetyThis major award confirms the companys constant commitment to the well-being of its employees Every year in addition to engineering inspections and machinery maintenance a number of hours of safety training are organised to raise awareness among workers and supervisors Specifically in 2016 2849 hours were dedicated to safety training and a significant reduction in injury rates was recordedMoreover BLSD refresher courses are continuously held for the team of Florim employees trained in first-aid operations and the use of the defibrillators available on site
2012 2013 2014 2015 2016
Number of workplace injuries 63 62 74 56 43
2016 Sustainability Report 29
The Master in Florim organized for the fourth time in 2016 is a vocational training project which aims to bridge the gap between education (high school or university) and the world of work The program which is one of the companys Social Responsibility projects sets out to help young people to get to know the company through a well structured work experience plan It offers a distinctively northern European approach with a method which alternates classroom teaching with internships in the various areas of the company Participants new university or high school graduates specialising in various subjects all below 30 years of age are therefore able to gain hands-on experience of all Florim departments from RampD to the production process and product distribution for an all-inclusive vision The MASTER courses ambitious aim is to match the individual participants talents with the companys real needs At the end of each edition the company hires all or some of the selected candidates enabling it to acquire new skills new experiences and new energy
Master 40 in figures
20 young people taking part6 months of training13 external lecturers264 hours of classroom teaching392 hours of practical training4 company visits (Ferrari Tetrapak Cremonini and Ducati)50 days of work experience on rotation involving 15 departments1 month of project work
The projects prestige is enhanced by its economic context since Florim pays the young participants for the entire period and its aim is to deal with the thorny problem of youth unemployment The Master has won approval from various faculties at major Italian universities The project was also a winner in the Emilia-Romagna Regions 2016 awards for Corporate Social Responsibility projects run in the local community A prize in the ldquoBusiness and Educationrdquo category was assigned to the Master project which aims to give young people the skills required for sustainable development
Master in Florim
2016 Sustainability Report
Watch the videoof the 4th edition
2016 Sustainability Report30
Local Community amp Culture
This chapter describes a number of programs Florim runs for the local community in the area where it originated and where it has been working for more than 50 years
Politecnico di Milano
Since the 20052006 academic year Florim has been a partner sponsor of a large number of Postgraduate Courses run by POLIDesign the Politecnico di Milano consortium which organizes its Master Degree coursesAlso in association with POLIDesign since 2012 Florims Milan showroom has hosted several design events for architects and designers of every nationality
Aziende modenesi per la RSI
ldquoAziende Modenesi per la RSIrdquo an independent open inclusive association of companies in the Modena area which believe in the principles and values of Corporate Social Responsibility was established by public deed on 30 September 2014 with Florim as a founding member Florim hosts the associations member companies every year to discuss the various topics proposed
Premio Lucchese
The Premio Lucchese presented for the twenty-ninth time in 2016 was established in memory of Giovanni Lucchese and consists of scholarships awarded to students at the ldquoAlessandro Voltardquo Technical High School in Sassuolo who graduate with full marks The award ceremony held every year at the Florim Gallery in association with Societagrave Ceramica Italiana of Bologna includes a talk given by a leading personality on a topic of current interest to an audience of eager young listeners
Intrapresaelig Collezione Guggenheim
As befits a company that combines the values of its local community and historic and artistic heritage with a flair for research and innovation Florim recently launched a partnership with the Peggy Guggenheim Collection Since its foundation Florim has always had a unique ability to incorporate the true cultural significance of its industry in its business model and by this project once again confirms its commitment to promoting art by supporting a collection of extraordinary beauty
Fondazione Ing Giovanni Lucchese
More than thirty years after the untimely death of Giovanni Lucchese ndash founder of what was then Floor Gres currently Florim ndash in 2013 his family established a Foundation in his name which since then has funded organizations and associations that support families in need in the ceramics district The Foundation also supports a variety of projects such as the summer play scheme for employees children the Premio Lucchese and the Florim HealthampTraining Center described in more detail below
The main projects undertaken in 2016 include the funding of the purchase of 10 defibrillators for the Municipality of Fiorano and the contributions made to the purchase of paediatric ambulances for the local area and to support the Parish charitable organizations and social services in the district
Watch the Premio Lucchese video
The project run jointly by Florim and Sassuolo Hospital adopts a completely new model combining industrial culture and healthcare in an original way to benefit the local people and community thanks to the coming-together of a ceramic coverings manufacturer and the public-private joint venture Ospedale di Sassuolo Spa Florim HealthampTraining is the synthesis of this idea an experimental center which promotes local training for healthcare and other staff health education and information advanced medical simulation and research
The Center
On the main Florim site and opened on 16 April 2014 the Center is 550 square meters in area and contains a modular lecture theatre able to seat over 100 people and a number of classrooms for seminars and lessons At its heart is a state-of-the-art control room crammed with technology that operates dummies capable of reproducing human functions of all kinds Advanced simulation is a major aid to maintaining the skills of emergency healthcare workers with a particular focus on pediatric and neonatal resuscitation
Health meetings
Designed as a space for community use the Center also aims to become a place where all sections of the population - workers schoolchildren parents teachers volunteers and even just members of the public - can learn about preventive health care and acquire first aid skills After the distribution to Florim employees of a questionnaire surveying their training needs and preferences a Center Scientific Committee of Sassuolo Hospital medical personnel was appointed and drew up a plan of bi-monthly ldquoHealth meetingsrdquo All meetings are led by doctors with expertise in the various topics who answer the many questions from the audience at the end of their talks Between its opening and the end of December 2016 the Center hosted 13 meetings on a variety of topics attended by about 1000 people including employees their family members and the community at large
Healthcare discounts for Florim employees
The project also includes a major welfare program for all Florim employees and their family members entitling them to discounts and shorter waiting times for specialist examinations and outpatient diagnostic tests performed on a private basis
American Heart Association
The world-famous American Heart Association (AHA) is the oldest and most respected American voluntary organization dedicated to the fight against cardiovascular diseases and strokes In 2015 the AHA via the Simaid International Training Center named the Florim HealthampTraining Center as an Authorized Training Site for basic and advanced cardiopulmonary resuscitation
Florim HealthampTraining Center
2016 Sustainability Report
Watch the Health amp Training Center video
2016 Sustainability Report32
Product Responsibility
Here we summarize the concept of Made in Florim denoting a product that encapsulates the companys core values passion innovation a constant commitment to improvement and corporate social responsibility
Florim product certifications
CE Marking guarantees the user that the materials purchased meet the requirements of the relevant regulations and that the characteristics concerned are virtually unchanged for all production lots It is a declaration of conformity which protects the consumerrsquos safety The presence of the CE Marking on packaging guarantees that Florim products comply with the relevant regulatory requirements
Ecolabel (EC Regulation 662010) is a certification granted to products which comply with ecological and performance criteria set at a European level concerning raw material extraction supplier selection manufacturing processes packaging distribution use and disposal The certified Florim collections are Architech Ecotech Reverse Walks 10 by Floor Gres and Pietra del Nord under the Rex brand
Several ceramic tile collections bearing the Florim brands have earned certification from Bureau Veritas for their pre-consumer recycled material content These articles are therefore fully eco-compatible and can meet the environmental sustainability requirements imposed by many international certifications
Florim is a member of the US Green Building Council (USGBC) the most important association which promotes the reduction of buildings negative impact on the environment To allow the effective monitoring a projects level of sustainability the USGBC has developed a certification procedure for the development of sustainable buildings which assess and certifies the sustainability of a building in its entirety Florim materials are able to help to gain LEED points in a number of areas (data available on the Florim brand websites)
Florim has achieved the prestigious Greenguard certification for all its products Issued by the American body UL Environment this certification aims to reduce indoor pollution caused by interior design systems and materials UL Environment thus aims to protect health by improving air quality and reducing peoples exposure to chemicals and other pollutants Florim has also achieved Greenguard Gold Certification which imposes even stricter limits to confirm that a given product is suitable for use even in locations such as schools and health care facilities
The EPD or Environmental Product Declaration is a document which defines the environmental impacts arising from production In 2016 Florim participated in the study - certified by the German organization IBU - performed on the ceramics industry average data which aims to raise international awareness of the excellence of the environmental standards achieved
Beyond the standardsMade in Florim products are a guarantee of safety highly innovative content and eco-friendliness The people who produce them work in a safe place and in ethically sustainable conditions Due to their nature all Florim products are guaranteed free from pollutant emissions do not accumulate electrostatic charges are frostproof and completely inert and are undamaged by contact with flames The Groups Internet sites and collection catalogues contain the technical data sheets which detail the product information (slip-resistance breaking strain abrasion resistance etc) for every collection as well as its recycled material content with the relative certificates
During the period under consideration no banned products were placed on the market and the company was not found guilty of any breaches of the law with regard to data protection or its marketing and communication activities
EU Ecolabel nr IT2104
2016 Sustainability Report 33
Quality SystemThe current ISO 9001 standards define quality as the ability to satisfy explicit or implicit needs via a product or a service A Quality System implies constant improvement of company processes in order to realise products that always satisfy the customerrsquos needs Further to the 2016 audit Florim obtained the renewal of its UNI EN ISO 90012015 certification for the design manufacture and sale of all categories of ceramic tile
Objective Indicator 2012 2013 2014 2015 2016
Continual improvement of control of the production process
Percentage of First Grade Product ()
924 943 942 952 956
Quality rate () 883 905 903 905 909
Scrap rate () 44 41 42 42 49
Productivity (sq mhour) 186 188 186 190 200
Improvements in sales performance and customer satisfaction
Innovation rate () 330 296 367 455 364
Coverage () 795 714 814 813 816
Total portfolio shippable within one month ()
911 837 888 893 897
Optimization of range and stocks
Obsolete stock () 172 126 165 120 69
Stock turnover rate () 13 15 16 15 16
Gradual elimination of disputes complaints and claims concerning service
Square meters affected by complaints ()
17 12 08 12 09
Complaints by number of order items ()
10 11 11 10 10
Gradual improvement in staff skill levels
Employee turnover () 15 23 04 04 12
KeyPercentage of first grade product percentage ratio between the square meters of first grade products and the total square meters transferred to stockQuality rate percentage ratio between the square meters of first grade product transferred to stock and the square meters leaving the pressesScrap rate percentage difference between square meters of material leaving the presses and square meters of product actually transferred to stockProductivity ratio between the square meters transferred to stock and the total hours worked in the plantInnovation rate ratio between square meters sold belonging to series designed in the last three years and total square meters sold Florim uses this indicator to assess the effectiveness of its design process in terms of salesCoverage percentage ratio between square meters available for immediate shipment and the square meters on orderTotal portfolio of orders shippable within one month percentage ratio between the square meters which can be shipped in 30 days and the square meters on orderObsolete stock percentage ratio between the square meters of substandard discontinued produce and the total square meters in stock Stock turnover rate ratio between the square meters sold and the square meters in stockSquare meters affected by complaints percentage ratio between the square meters affected by complaints and the square meters soldComplaints by number of order items percentage ratio between the number of complaints and the number of items orderedEmployee turnover percentage ratio between the number of employees leaving the company and being replaced and the workforce at the start of the year
2016 Sustainability Report34
Casamood - Neutra 60 Collection
2016 Sustainability Report 35
OUR COMMITMENTS
The promises we keptIn our last Sustainability Report we committed to achieving a large number of objectives the following are the outcomes we attained
Relaunch of the ldquoCEDIT ndash Ceramiche drsquoItaliardquo brand OBJECTIVE ACHIEVED
Launch of the FLORIM stone brand OBJECTIVE ACHIEVED
Installation of a new latest-generation kiln at the Mordano plant OBJECTIVE ACHIEVED
Transfer of the Moscow showroom to new premises SCHEDULED FOR 2017
Creation of a new gatehouse at the Mordano plantOBJECTIVE POSTPONED TO GIVE PRIORITY TO THE CONSTRUCTION OF THE NEW FACTORY
Introduction of ERP system at Florim USA OBJECTIVE ACHIEVED
Installation of a new spray dryer and raw material handling system at Florim USA
OBJECTIVE ACHIEVED
Economic Responsibility
Renewal of certification of the Florim environmental and energy management system
OBJECTIVE ACHIEVED
Award of new certifications for collections manufactured with a high recycled material content
OBJECTIVE ACHIEVED
Continuation of work to reduce environmental impacts at Mordano especially with the reduction of energy costs
OBJECTIVE ACHIEVED
Continuation of the work to remove asbestos cement roofing materials at the Mordano plant
OBJECTIVE ACHIEVED
Expansion of the system which conveys rainwater to the treatment plant OBJECTIVE ACHIEVED
Reduction of the noise emissions of the air filtering systems OBJECTIVE ACHIEVED
Increase of recycling targets through constant awareness-raising amongst all staff and optimisation of recycling facilities
OBJECTIVE ACHIEVED
Continuation of replacement of the diesel forklift trucks for use on outdoor yards with electric vehicles
OBJECTIVE ACHIEVED
Environmental Responsibility
Running of fourth edition of Master Florim course with new procedures OBJECTIVE ACHIEVED
Creation of an internal refreshment area for the Fiorano office staff OBJECTIVE ACHIEVED
Improvement of corporate welfare through the activation of new free services and discounts tailored to employees needs
OBJECTIVE ACHIEVED
Continuation of the health meetings for the local community in association with Ospedale di Sassuolo Spa
OBJECTIVE ACHIEVED
Organization of new community events at Florim Gallery OBJECTIVE ACHIEVED
Organization of Florim Family Day 2016 A PARTY WAS ORGANISED FOR EMPLOYEES
Social Responsibility
2016 Sustainability Report36
The targets we set for ourselvesWe aim to achieve the following objectives in 2017
Economic Responsibility
Construction of a new factory at Mordano to produce large slabs
Launch of the project to unite the Florim spa sales organizations
Total restyling of the corporate and brand Internet sites
Launch of the HUB project - Intranet CRM Marketing Automation
New plants at Florim USA a press two sorting lines a polishing and rectifying line
New working spaces and cloakrooms for technical staff at the American plant
Environmental Responsibility
Purchase of a new cogenerator for the Mordano plant
Introduction of a new rainwater collection system at Fiorano
Land reclamation project involving covering of the Rio Spezzano stream at Fiorano
Implementation of new software for continual monitoring of energy impacts at Fiorano
Modernisation of the compressor room to improve energy impacts at Mordano
Increase of recycling targets through constant awareness-raising amongst all staff and optimisation of recycling facilities
Continuation of replacement of the diesel forklift trucks for use on outdoor yards with electric vehicles
Social Responsibility
Improvement of corporate welfare through the activation of new free services and discounts tailored to employees needs
Continuation of the health meetings for the local community in association with Ospedale di Sassuolo Spa
Organization of new community events at Florim Gallery
Organization of a new event for Florim spa employees
New offices for hospitality and events staff at Fiorano
2016 Sustainability Report 37
FLORIM USA
Profile and Economic ResponsibilityFlorim USA with registered office at Clarksville - Tennessee - and its subsidiary Florim Solution Inc have been part of the Florim Group since 2000 The Florim USA manufacturing plant one of the largest most technologically advanced in the United States produces porcelain stoneware tiles for the residential market and undertakes commercial projects in North America During the last few years Florim USA has implemented a growth and process optimization strategy which has generated significant technological progress with more innovations planned for the future The strategy adopted will put Florim USA at the worldwide state of the art in porcelain stoneware tile manufacture
In 2016 of the 18 million USD invested 147 was allocated for installation of a latest-generation raw material handling system and a large spray-dryer with an innovative sorting system Improvements were made to other parts of the process to increase their efficiency leading to a further reduction in emissions and scrap rates Additional investments are planned during 2017 to continue this dual trend of rising production with mitigation of environmental impact
The new Florim Flagship Store in New York (152 Madison Avenue 32nd Street)
2016 Sustainability Report38
Environmental ResponsibilityFlorim USA implements the same environmental policy as Florim and is committed to achieving the following objectives
bull reduction of the energy used in the production processbull improvement of the waste management process with a focus on recovery and reusebull introduction of new more eco-efficient technologiesbull adoption of integrated management systems
Florim USA has been pursuing a strategy of careful management of its operations and environmental impact for a number of years Here we summarise the main actions taken and the results achieved in 2016
bull installation of a latest-generation spray-dryer in 2016bull installation of an innovative raw material handling system in 2016bull 100 recycling of wastewater within the processbull optimisation of the management of water bottles with elimination of about 34200 of them per annumbull reuse of almost all production scrap (+99)bull 157000 kg of cardboard recycled in 2016bull award of two different types of product certificationbull 9300 kg of plastic recycledbull recycling of 17 complete trucks of pallets
Environmental Projects and Awards
Florim USA has received Clarksville Montgomery County Green Certification (CMCGC) CMCGC is a program designed to help companies learn and implement best practices in the area of environmental stewardship to sustain the local communityrsquos resources through a series of free workshops taught by local environmental specialists Since 2014 Florim has allocated some of its Environment Managers time for the running of these workshopsFlorim USA earned this green company certification thanks to a large number of projects first and foremost the one which eliminated the use of disposable water bottles replaced with individual reusable bottles provided by the company and a series of fill-up stations About 34200 bottles are removed from the waste cycle every year
During the latest phase of its plant optimization Florim USA has implemented a thorough construction material reuse policy In the various stages of demolition of the old plants including the old storage silos the concrete debris was recovered and reused in other construction worksThis project alone generated 11500 tons of recycled aggregate as well as several hundred tonnes of metal sold to a recycling firm
Environmental management system and eco-compatible products
Florim USArsquos products help builders and designers to meet the requirements for sustainable buildings as defined by the United States Green Building Council (USGBC) through the LEED Green Building Rating System This protocol evaluates and certifies the environmental sustainability of a building as a unit from its design to its day to day management To gain LEED credits many of the Florim USA product lines contain a significant percentage of recycled material (40 or more)This feature contributes to an increase in the LEED score in the projects where these products are installed In 2014 Florim USA together with a large number of other US tile manufacturers and the Tile Council of North America drew up a type III environmental product declaration (EPD) certified under the ISO 14025 standard This ceramic tile life-cycle analysis enables Florim USA products to gain LEED points under the new LEED v4 protocol
2016 Sustainability Report 39
Water use (gallonsper million square feetof finished tiles)
208137 216246 204962 195280 194268
Energy use
2012 2013 2014 2015 2016
Cubic feet of natural gas per million square feet of finished tiles 9343383 9149721 8331170 8390503 8380000
kWh per million square feet of finished tiles 510972 491171 450594 465976 490300
Emissions
Particulate material lt 21024 tonnes per annum
SO2 (sulphur dioxide) lt 1674 tonnes per annum
VOC (volatile organic compounds) lt 1245 tonnes per annum
NOx (oxides of nitrogen) lt 1501 tonnes per annum
Environmental performance indicators ndash summary
The following are the main environmental indicators related to the impact and performance of Florim USA during 2016
Pre-consumer recycled material
Its internal material recycling processes enable the company to minimise its environmental impact since most of the material which would otherwise be sent to landfills or other waste treatment centers is reusedbull Wastewater is entirely recycled within the production process without any discharge into the municipal drainsbull The material in the collection bags from the tile body and glaze preparation areas the press and glaze application is entirely recycled within the processbull All scrap fired tiles are entirely recycled within the processbull 157000 kg of cardboard was sold to an external recycled material dealerbull 17 trucks of unusable wooden pallets were sold to a pallet regeneration companybull About 9300 kg of waste shrink-wrap plastic film was recovered and recycled
Post-consumer recycled material
About 82000 kg of glass was removed from the flow of waste destined for the local landfill and recycled within the process Florim USA has signed an agreement with the local landfill for consignment of all the glass it handles which is collected and set aside for recycling
Water use disposal and reuse
The water used during the production process is recycled continually therefore no water is discharged into the municipal drains
The 2016 emissions figures are in line with those for previous years well below the standards laid down
Water use 2012 2013 2014 2015 2016
Water use (gallons per million square feet of finished tiles) 216246 204962 195280 194268 203928
2016 Sustainability Report40
Social Responsibility
Employees
The Florim USA workforce comprises 348 staff employed at the production site the Clarksville and Nashville outlet stores and the Florim Solution offices Of the 348 employees 273 are blue-collar workers and 75 office staff 5 employees are Italians on secondment to the United States Florim USA offers a number of benefits to full time employeesbull health and dental care insurancebull Vision insurancebull life insurance for employees and optionally for family membersbull temporary and permanent disability supportbull employee pension plan
2012 2013 2014 2015 2016
Workplace injuries 50 41 22 29 27
The Employee Assistance Program (EAP) also offers support to employees and their families in the event of psychological difficulty or other problems that can have a negative impact on their quality of life Florim USA supports all the costs of the program
Equal opportunities
Florim USA provides equal opportunities in all employment practices to all qualified employees and applicants regardless of race colour religion gender national origin age disability or membership of the armed forces or any other category protected by federal state or local laws
Health and safety
FLORIM USA is committed to ensuring a safe healthy workplace for all employees It therefore replaces old and obsolete equipment with new technologically more modern machinery and updates safety plans as new information gradually becomes availableAs well as an internal supervisor Florim USA has also appointed a health and safety committee which constantly monitors the plans effectiveness and makes any changes requiredThere are currently 20 plant employees who hold CPRfirst aid qualifications They occupy a variety of positions and work different shifts within the plant and have volunteered to attend training courses sponsored by the company for the award of these qualifications
Training
In 2016 every Florim USA employee attended an average of about 25 hours of training The training provided covered the operating procedures for the new equipment the main safety plans and the procedures for use of existing equipment for new employeesAll new staff undergo specific training for their department focusing on the safety-related aspects of the department concerned as well as more generalized safety training
Some of these themes includebull safe correct use of forklift trucksbull training on work in confined spacesbull shutdownwarning procedures and safe electrical practicesbull safe lifting procedures
2016 Sustainability Report 41
Florim USA ndash (Clarksville Tennessee)
For employees wishing to continue their education Florim USA offers assistance through the Educational Assistance Program It provides aid with the cost of education and textbooks and is available for any employee wishing to study for a technical qualification a diploma or a degreeThe plant staff training and education plan also includes various training schemes at Florim Italy where employees are instructed in the use of new equipment before it is installed at the American plantThroughout 2016 Florim USA will continue to provide a free e-learning course on its website for architects engineers and contractors (AEC) to improve their knowledge of sustainable porcelain stoneware tiles
Employee welfare activities
Florim USA employee picnic - In 2016 the company once again held its annual picnic for employees offering them a wide variety of foods games activities and live shows in an event which provided an unforgettable days enjoyment Within the event participants received prizes in the form of vouchers and gifts
Employee anniversary dinner - 2016 again saw the usual dinner to honour Florim USA employees with 5 10 15 20 or more years of service A special evening event was held in the presence of the Chairman and the other managers to celebrate the loyalty and hard work these employees have contributed during their careers with the firm
2016 Sustainability Report42
Local Community
During 2016 Florim USA continued to provide its support to a number of projects in its local areaSome of the main projects include
Scholarships - As part of its work to support the local community Florim has an established scheme which awards scholarships to deserving students at the Austin Peay State University in memory of Florim Group founder Giovanni Lucchese In December 2016 a delegation of Florim representatives attended a scholarship presentation lunch at the Austin Peay State University hosted by the President of the University
Montgomery County Green Certification Program - Florim USA staff actively participate in the Montgomery County Green Certification Program which aims to help companies learn and implement best practices with regard to safeguarding the environment and environmental resources
Donations - In 2016 the company again made a large number of donationsbull book collection for the Austin Peay State University Employees made a generous donation of used books in good condition for children and young people of the APSU in the hope of further promoting the education of future generationsbull to Community Cares the national organization that promotes the acceptance and social inclusion of individuals with Downs Syndromebull to the Aspire Clarksville Foundation a 501(c)(3) charitable foundation whose mission is to continuously improve the economy and the livability (quality of life) of the community by attracting significant capital investment and expansion by businesses and corporations thereby creating better opportunities and higher paying jobs for residentsbull to the Alzheimerrsquos Association a non-profit voluntary organization dedicated to the care and support of Alzheimers Disease sufferers and research into the condition Its aim is to eliminate the disease through the advancement of research to provide and enhance care and support for all affected and to reduce the risk of dementia through the promotion of brain health
Other activities - Every year Florim USA participates in the United Way Drive initiative to support local non-profit organizations which provide economic assistance and psychological support to persons in difficulty
Florim USA provides regular support to the Salvation Army by collecting canned foods for persons in needIn 2016 the company again organised a canned food collection for Manna Cafeacute in Clarksville TN Manna Cafeacute is a local non-profit organization based in Middle Tennessee with the primary mission of meeting peoples fundamental need for food before encouraging them to permanently change their lives for the better More than 15 of the population in Montgomery County are affected by food insecurity (about 28000 people) The percentage of children affected is about 215 a third of whom are excluded by income from federal programs such as free school mealsFinally donations were made tobull American Lung Association the leading organization working to save lives by improving lung health and preventing lung disease through research and educationbull Cheer for a Cure an organization that gives money directly to afflicting families who have a loved one suffering from cancer and need assistance to alleviate the added financial stressbull Habitat for Humanity Since 1992 Habitat for Humanity in Montgomery County Tennessee has worked with 93 low-income families with more than 210 children to revitalise various parts of Clarksville-Montgomery County by building new homes
2016 Sustainability Report 43
Quality SystemFlorim USA works under a Quality System certified to UNI EN ISO 9001 standards The following are some of the figures in brief
Objective Indicator 2012 2013 2014 2015 2016
Optimisation of control of the production process
Percentage of First Grade Product ()
932 917 940 949 9510
Quality rate () 883 857 893 906 909
Scrap rate () 56 65 48 45 45
KeyPercentage of first grade product ratio between square feet of first grade material and total square feet transferred to stockQuality rate ratio between square feet of first grade material transferred to stock and square feet pressedScrap rate ratio between square feet pressed and square feet of product actually transferred to stock
Other ActivitiesFlorim USA and trade shows
In 2016 Florim USA participated at a number of shows and events including Coverings the AIA Tennessee Convention Hardscape North America Total Solutions Plus Neocon International Pool - Spa and Patio Expo These events targeted at the various categories of industry professionals such as dealers and designers gave Florim USA the opportunity to present its new range of indoor and outdoor products
Design Center
In December 2015 Florim USA opened a design center showroom in Nashville (TN) in a strategic location close to the airport and the city center With a spacious area to host individual CEU presentations and workshops this design center has the potential to be a major resource for local architects In 2016 it was also awarded the ldquoOutstanding Boothrdquo booth prize at the 33rd edition of the Annual Home Decorating and Remodeling Show The location is the ideal place for sharing ideas finding inspiration and putting professionals and architects in touch with each other
Florim Nashville Design Center
2016 Sustainability Report44
GRI International Sustainability Indicators SDGsThe information below illustrates the correspondence between the Florim (Italian companies) 2016 Sustainability Report the GRI-G4 guidelines and the icons of the Sustainable Development Goals (SDGs) definitively adopted by the United NationsA description of the SDGs is available at wwwglobalcompactnetworkorg
GRI indicators
Description Page Reference to SDGs
1 Strategy and Analysis
G4-1 Statement from the most senior decision-maker of the organization 5
2 Organization profile
G4-3 Name of the organization 2
G4-4 Primary brands products andor services 9
G4-5 Location of the organizations headquarters 9
G4-6 Number and names of the countries where the organization operates 9
G4-7 Nature of ownership and legal form 14
G4-8 Markets served 9
G4-9 Scale of the organization 8 8
G4-10 Significant changes regarding size structure or ownership 8
G4-11 Employees covered by National Collective Bargaining Agreement 27
G4-12 Describe the supply chain 16
G4-13Significant changes regarding the organizationrsquos size structure ownership or its supply chain
Reporting process
launched
G4-14 Precautionary principle 22
G4-15 List of external commitments in which the company is involved 22 32 33
G4-16 Associations or interest groups in which the company is involvedwwwflorimit gt
about us gt partnerships
3 Identified material aspects and boundaries
G4-18 Process used to define the report content 6
G4-19 Material aspects 16
G4-20 Boundaries of each material aspect 6
G4-21 Boundaries of each material aspect outside the organizationPartial reporting
(pages 6 16)
G4-22 Explanation of the effect of any restatements of information provided in previous reports 6
G4-23Significant changes from previous reporting periods in the scope boundaries or measurement methods
6
3 Stakeholder engagement
G4-24 List of stakeholders 15
G4-25 Identification of stakeholders 15
G4-26 Stakeholder engagement 6 16
G4-27 Key topics and concerns that have been raised through stakeholder engagement 16
4 Boundary of the Report
G4-28 Reporting period 6
G4-29 Date of publication 2
G4-30 Reporting cycle 6
G4-31 Contacts and addresses for additional information 46
5 GRI Content Index
G4-32 Reporting option chosen 6 7
G4-33 External assurance of ReportThe Report is not
externally assured
2016 Sustainability Report 45
GRI indicators
Description Page Reference to SDGs
6 Governance
G4-34 Governance structure 14
7 Ethics and integrity
G4-56 Values principles standards and norms of behavior 13 16
Economic performance indicators
EC1 Direct economic value generated and distributed 19 25789
EC5 Wages 27 158
EC7 Development and impact of infrastructure investments and services supported 23 24 31 257911
Environmental performance indicators
G4-EN2 Percentage of materials used that are recycled input materials 17 22 23 812
G4-EN3 Energy consumption within the organization 24 781213
G4-EN6 Reduction of energy consumption 17 24 71213
G4-EN7 Reductions in energy requirements of products and servicesPartial reporting
(page 22)71213
G4-EN8 Total water withdrawal by source 17 23 6
G4-EN10 Percentage and total volume of water recycled and reused 17 21 23 612
G4-EN11 Biodiversity 23 615
G4-EN15 Total indirect greenhouse gas emissions by weight 25 3121315
G4-EN16 Total indirect greenhouse gas emissions by weight 25 3121315
G4-EN19 Reduction of greenhouse gas emissions 8 24 1315
G4-EN21 NOx SOx and other significant air emissions 25 31215
G4-EN22 Total water discharge by quality and destination 23 6
G4-EN23 Total weight of waste by type 17 22 3612
G4-EN27 Impact mitigation of environmental impacts of products and services 23 68121315
G4-EN29 Monetary value of significant fines 22 16
G4-EN30 Significant environmental impacts of transporting products and goodsmaterialsPartial reporting
(page 25)111213
Social performance indicators
G4-LA1 Total number and rates of new employee hires and employee turnoverPartial reporting
(pages 17 27)8
G4-LA6 Workplace injury ratesPartial reporting
(page 17)38
G4-LA9 Average hours of training per year per employee 28 48
G4-LA12Composition of governance bodies and breakdown of employees according to gender age group etc
27 58
G4-LA13 Ratio of basic salary and total remuneration of women to men 27 5810
Society
G4-SO1 Operations with local community engagement 12 31 16
G4-SO3 Operations assessed for risks related to corruptionPartial reporting
(page 13)
Product responsibility
G4-PR1 Assessment of health and safety impacts for improvement 23 32
G4-PR3 Type of information about products and services required by the procedures 32 12
G4-PR5 Proceedings relating to customer satisfaction including surveys conducted to measure it 33
G4-PR6 Sale of banned or disputed products 32
G4-PR8 Number of substantiated complaints regarding breaches of privacy 32 16
2016 Sustainability Report46
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Click here to send us your feedback
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Florim_ceramiche
Florim Ceramiche spa
Florim Ceramiche
Florim Ceramiche
For any further information please feel free to contact our communications department comunicazioneflorimit
2016 Sustainability Report 47
Premio Lucchese - Florim Gallery (Fiorano Modenese - Modena Italy)
Intrapresaelig Guggenheim Collection - Massimo Bottura in Florim Gallery (Fiorano Modenese - Modena Italy)
Panathlon Christmas Gala - Florim Gallery (Fiorano Modenese - Modena Italy)
2016 Sustainability Report48
White Christmas Party - Florim Gallery (Fiorano Modenese - Modena Italy)
Cersaie - Mario Biondi in Florim Gallery (Fiorano Modenese - Modena Italy)
Dal buio alla luce - Social event at Florim Gallery (Fiorano Modenese - Modena Italy)
2016 Sustainability Report 49
Florim Gallery entrance (Fiorano Modenese - MO)
2016 Sustainability Report52
Florim Ceramiche spaVia Canaletto 24 - 41042 Fiorano Modenese (Modena Italy) - Tel +39 0536 840111 - wwwflorimit
2016 Sustainability Report10
Our Design ServiceAs well as the product itself Florim offers a unique level of technical support throughout the various design phases From the feasibility study to the final installation Florim Solutions works side by side with the architect providing skills and experience whenever the style and performance of porcelain tiles become fundamental to the project In the age of speed and the digital revolution the company has also created an integrated web platform to give its professional partners unbeatable service Exclusive events visibility for projects free training meetings and specific competitions are just some of the services offered by Florim4Architectscom
Expo Azerbajan Pavilion winner of the Florim4Architects ldquoProject of the Yearrdquo competition
2016 Sustainability Report 11
Our 2016In this section we focus on the latest news from the Group covering a wide variety of aspects but all confirming the importance of Florims large slabs and once again underlining the centrality of innovation for the companys business
New brands
In April Florim chose the Salone Internazionale del Mobile a major event for the global design community for the relaunch of the CEDIT - Ceramiche drsquoItalia brand The brand which has always had links with leading artists designers and architects has achieved a superlative creative standard over more than fifty years of experimentation with materials and stylistic research in ceramic design CEDIT is returning to the forefront of Italian manufacturing in partnership with some of contemporary Italys top creative names Its new identity is a fine blend of Craftsmanship and Innovation expressed on the large slabs produced by Florim technology December saw the official opening - in the heart of Milan - of the first Spazio CEDIT the tangible expression of an innovative display concept created to convey the brands philosophy to the world
The brand created to explore new application solutions reaching beyond the conventional construction concept is called FLORIM stone Launched at Cersaie - the biggest ceramics industry show - this brand combines the outstanding performances of porcelain stoneware with the utmost personalisation of spaces The dimensional and functional plus factors of latest-generation large slabs allow stoneware to be used in a versatile customized way not just as a wall and floor covering but also for tops and furnishings (tables kitchen worktops and bathroom counters doors and fireplaces are just some of the possible applications)
New look
A busy year partly due to the refurbishment of the Fiorano Modenese headquarters As well as the new gatehouse the faccedilade of the office building was also restyled bringing it up to date with an all-white lookAn innovative modification at the technological state of the art was made to the raw material shed with a ventilated faccedilade of almost 1900 msup2 of Magnum Oversize large slabs The installation reproduces the ldquoArcheologierdquo collection (designed by artist Franco Guerzoni for CEDIT) and the lake of Vernago in Italys Alto Adige region (photo by Vanni Borghi) A latest-generation project leading the way in technology safety and maintenanceLast but not least a new barrier was also designed and constructed to separate the Florim property from the SFrancesco road It took 3 months to erect a boundary fence of about 340 meters of double-sided porcelain stoneware slabs 180 cm high and 265 cm wide supported by a steel frame With a total of 1122 slabs the fence was designed to withstand weather earthquakes and the forces generated by traffic passing at high speeds Installed at different angles the slabs create attractive effects with light and shade demonstrating the importance of sophisticated aesthetics to the companys identity
New Awards
Florims large slabs are the featured products in the various awards received and have been assigned one of the most important accolades in the design world with an Honourable Mention at the XXIV edition of the ADI Compasso drsquoOro awards
Just a few months after its launch the CEDIT brand also received major awards at the global level the NYCxDESIGN Award in New York the Hospitality Design Awards in New York ldquo100 Best of 2016rdquo at the Archiproducts Design Awards 2016 and the Best of the Best (April 2017) in the Design Product category at the coveted German Red Dot Design Award
More recognition came from the Emilia-Romagna Regions 2016 awards for Corporate Social Responsibility projects run in the local community A prize in the ldquoBusiness and Educationrdquo category was assigned to the Master in Florim project which aims to give young people the skills required for sustainable development
Learn moreabout CEDIT
Learn moreabout FLORIM stone
2016 Sustainability Report12
In the age of digital transformation Florim still believes in the importance of creating opportunities for meeting and exchanging ideas and in 2016 more than 12000 people came to the Florim Gallery (a multi-purpose space of 9000 msup2 at the Fiorano headquarters) Events of social usefulness workshops community projects and business occasions our training events and hospitality staff were busy on many different fronts It was also a major year for off-site events The Florim Flagship Store in Milan and the just-opened New York Flagship Store hosted more than 3200 people at events for architects and designers supported with important partnerships with POLIdesign and leading publishersFlorim also chose the world-famous Peggy Guggenheim Collection in Venice as the location for two exclusive events to highlight the partnership agreement signed with Guggenheim Intrapresaelig A dinner in the wonderful setting of the museums panoramic terrace followed speeches by distinguished guests Ettore Mocchetti Martino Gamper Domitilla Dardi Giorgia Zanellato Daniele Bortotto Franco Guerzoni and Benedetto Fasciana The final event of the year was held for the employees with a ldquoWhite Christmas Partyrdquo evening at a Florim Gallery decorated for the festive season
A year of Florim events
LrsquoArte del Design - Florim event at the Peggy Guggenheim Collection (Venice)
2016 Sustainability Report
View the Florim eventat the Guggenheim
2016 Sustainability Report 13
GOVERNANCE
Code of EthicsThe groups governance plays a central role in the responsible development of its business ensuring ethical transparent management of its operations with its stakeholders interests always in mind
After approving the Governance Model compliant with the provisions of Italian Legislative Decree 2312001 the Florim Board of Directors signed and promoted the corporate Code of Ethics (revised in June 2016) which has become an integral part of Florims business and is accepted by every new employee supplier and agentTo guarantee the application of and compliance with its contents a Supervisory Board was established to detect any breaches of its provisions All stakeholders can also contact the Supervisory Board (organismodivigilanzaflorimit) for further explanations regarding the interpretation and application of the corporate Code of Ethics as described on the corporate websiteThe following is an extract from the rules of conduct which govern the way we do business
Our mission
To manufacture ceramic tiles and materials for multiple uses and offer the most appropriate solutions for both interior design and architecture To constantly prioritise environmental sustainability attempting to satisfy the needs of customers and to create value for shareholders employees and the local community in compliance with the ethical principles and rules of conduct set out in the Code of Ethics
Our vision
To be at the cutting edge of technical and design innovation in ceramics by developing materials and production methods that position us as a constant benchmark for customers architects and competitors
Our values
Honesty and Respect all internal and external relationships must be based on honesty and respect for rules and dignity of the individual
Corporate Social Responsibility corporate social responsibility must be promoted through measures and practices adopted to support the local environment and community
Individual Responsibility everyone must be aware of the worth and consequences of their own actions
Quality and Innovation excellence must be pursued by improving products processes and skills to promote corporate success
Transparency intentions and positions must be expressed openly and clearly without misunderstandings or misrepresentation to build lasting relationships based on trust both inside and outside the company
Courage a moral strength which enables us to undertake and deal with changes difficulties and challenges to benefit from all the opportunities they offer
Feeling of Belonging feeling proud to be a part of one big team made up of the company associates customers and suppliers
Management System Policy
To achieve greater and greater transparency in its reporting the company has drawn up guidelines for its quality environment safety and energy management system Read more
2016 Sustainability Report14
Corporate BodiesFlorim Ceramiche spa is a family-run business with fully subscribed paid-up share capital consisting of 50000000 ordinary shares with a face value of 1 Euro each The capital is 100 owned by the holding company FinFloor spa with registered office in Fiorano Modenese which is in turn indirectly owned by the Lucchese family through Fin-Twin spa
The Board of Directors has 11 members
CLAUDIO LUCCHESE Chairman
DONATO BRUNI Deputy Chairman
MARIADELE LUCCHESE Director
ANNA LUCCHESE Director
FRANCESCA LUCCHESE Director
GIOVANNI LUCCHESE Director
The Board of Directors has a mandate of one year and new elections will coincide with the approval of the financial statements The Board of Statutory Auditors is composed of three members whose term of office is three years from their appointment on 1252016 until approval of the 2018 financial statements The financial statements of Florim spa and the consolidated financial statements of FinFloor spa and Fin-Twin spa are audited and certified by Deloitte spa
Corporate StructureThe changes to be noted since the previous financial statements include the incorporation of ldquoMordano 4 srlrdquo and amalgamation by acquisition of Maker srl in Florim Ceramiche spa
KRONOS 2 CERAMICHE spaShare capital euro 1646799
Fondazione Ing G LuccheseEndowment euro 60000
FABBRICA delle MATERIE srlShare capital euro 10000
EDIL FLOOR surlShare capital euro 9812681
ISABELLA srlShare capital euro 100000
FI HOLDING IncShare capital USD 50000
100
10
100
30
9667
100
1
1
99
99
100
FIN TWIN spaShare capital euro 540800
FINFLOOR spaShare capital euro 10500000
542810
FLORIM CERAMICHE spasingle shareholder companyShare capital euro 50000000
100
FLORIM BRASIL LtdaDISTRIBUICcedilAtildeO DE CERAcircMICAS Ltda
Share capital R$ 46100000
FLORIM RUSShare Capital 100000 Roubles
FLORIM USA incShare capital USD 51865541
FLORIM SOLUTION IncShare capital USD 845943
100
MORDANO 4 srlShare capital euro 100000
85
FLORIM FAR EAST PTE LtdShare capital S$ 10000
100
ERMES GIUSEPPE FERRARI Managing Director
GIOVANNI GROSSI Managing Director
OSCAR ISEPPI Managing Director
DORVAN SAZZI Managing Director
STEFANO TORRENTI Managing Director
2016 Sustainability Report 15
StakeholdersStakeholders are all individuals and groups who may influence or be influenced by a companys operations in terms of policies products and working processes shareholders employees customers and consumers suppliers local government the local community banks and trade unions
Employees and Trade Unions
Florim makes the following commitments to its employees
bull to guarantee equal opportunities fair pay and professional growth
bull to reward its human resources on the basis of transparent meritocratic criteria
bull to create safe working environments and processes
bull to guarantee transparency and clarity in contract conditions
bull to encourage dialogue and internal communications
Customers and Consumers
In dealing with its (retail) customers Florim is committed to
bull creating a relationship of trust as a stable basis for business
bull guaranteeing clarity in contracts and prices
bull guaranteeing the reliability of its products and developing customer service
bull offering innovative safe environmentally sustainable products
bull providing a diversified offering with services with high value added
The overall aim is also to satisfy the expectations and demands of the final consumer
Developers Architects and Interior Designers
To meet the needs of developers Florim is committed to
bull offering state-of-the-art solutions in terms of environmentally sustainability technology and design
bull establishing and fostering relationships with partner professionals
bull providing consulting and technical experience from the project concept through to installation
bull supplying turnkey solutions
Local Communities and Local Government
In its relationships with local communities and local institutions Florim is committed to
bull guaranteeing dialogue cooperation and transparency
bull giving value back to the local communities in the areas where it operates
bull continually improving the environmental performances of processes
bull researching developing and using the most sustainable technologies
bull making an economic contribution to local sporting and social projects for children and young people
Suppliers
When selecting its suppliers Florim pays close attention to companiesrsquo CSR practices Florims relationships with its suppliers are based on compliance with the values of its code of ethics otherwise contracts are automatically terminated Florim also guarantees certainty in payment times and compliance with contract terms provided the goods and services contracted are delivered as agreed
ERMES GIUSEPPE FERRARI Managing Director
GIOVANNI GROSSI Managing Director
OSCAR ISEPPI Managing Director
DORVAN SAZZI Managing Director
STEFANO TORRENTI Managing Director
2016 Sustainability Report16
Materiality ApproachIn 2015 the company began an internal analysis process based on the materiality principle in order to identify the sustainability issues of relevance both for the Group (including Florim USA) and for all stakeholders Materiality is the threshold above which a topic becomes sufficiently important to be included in the report In fact organizations are faced with a large number of topics on which they could report Relevant topics and indicators are those considered important for reflecting the organizations economic environmental and social impacts or which influence the decisions of its stakeholder and which therefore potentially merit inclusion in the report In accordance with the GRI ndash G4 Guidelines Florim has analyzed and identified relevant topics which were assessed by the working team which drafted the Sustainability Report on the basis of discussion with the main stakeholders The findings which emerged were supported by a qualitative survey external to the companys context examining an analysis of the press gallery (more than 650 articles) competitors Sustainability Reports the Emas Study of the Fiorano and Sassuolo Ceramics District and the GRI document ndash ldquoSustainability Topics for Sector What do Stakeholders want to knowrdquo
In the chart below the aspects found to be most important appear in the top right-hand corner and constitute a strategic priority for the Group The topics in the bottom left-hand corner such as biodiversity prevention of corruption and absence of discrimination are less relevant because they are easy for both the organization and stakeholders to manage and no problems have ever been reported over the years Similarly the protection of human rights is now taken for granted since Florim complies strictly with all the provisions of the National Employment Contract
Importance for stakeholders
Importance for Florim spa
low
m
ediu
m
high
low medium high
Biodiversity
Indirect economic impacts
Prevention of corruption
Market share
Absence of discrimination
Sustainable transport
management
Protection of Human Rights
Environment and safety
Water saving
Energy efficiencyRaw materials
Diversity and equal opportunities
Transparency of financial and other
information
Ethical supplier
management
Investments in the local community and social welfare
Direct and indirect environmental
impacts
Green products and
services
Economic performance
Quality of products offered to customers
Regulatory compliance
Development of human resources
and training
ENVIRONMENT
COMMUNITY
EMPLOYEESASSOCIATES
ECONOMIC PERFORMANCE
PRODUCT RESPONSIBILITY
HUMAN RIGHTS
2016 Sustainability Report 17
FinFloor consolidated (in thousands of Euro) 2012 2013 2014 2015 2016
Net earnings 315344 325853 329533 374094 406759
EBIDTA 59608 72986 84395 98115 107186
Operating result 35717 50996 58508 66255 71028
Gross cash flow 52710 68312 83274 97268 109148
Net profit 26103 35732 36433 43324 49347
Net financial indebtedness (127730) (96500) (54524) (27326) (12508)
Final inventory 95514 84432 90283 92795 96721
Net shareholders equity 186905 218847 276916 332721 369937
Total investments 32572 48780 41584 34215 53531
2012 2013 2014 2015 2016
Waste produced (t) 30228 21170 22300 30862 34423
Recycled third-party waste (t) 4028 4190 1721 2570 5627
Total water consumption (msup3) finished product (t) 075 075 078 069 071
Recycled water percentage 100 100 100 100 100
Self-generated energy in relation to consumption 67 68 62 65 75
Investments in environmental management (euro000) 13617 2493 1995 465 6400
2012 2013 2014 2015 2016
Number of employees at 3112 1037 992 984 982 987
Total number of training hours 14690 9124 9056 7176 10606
Number of training hours on environment and safety 7572 4514 4200 3008 2489
Number of workplace injuries 63 62 74 56 43
Environmental and social profile figures refer to Florim Italy for Florim USA please see the relevant section (from page 37)
REPORTING
In brief
Economic Profile
Environmental Profile
Social Profile
2016 Sustainability Report18
Economic Responsibility
Comments on 2016 Economic Data
The Groups 2016 results were again good from every point of view
Compared to the previous year turnover increased by 87 leading thanks to careful management of production costs to an EBITDA of Euro 1071 million equivalent to 263 of turnover and a profit after tax of Euro 493 million
The companys financial data also significantly improved with a net financial position of Euro 125 million compared to Euro 273 million at the end of 2015 in spite of record technical investments of Euro 535 million and financial investments of Euro 11 million
Once again underlying the results achieved were large investments in latest-generation machinery and technologies painstaking research to develop materials with exceptionally high technical and design content human resources and projects for the increasingly direct promotion of Florims image and quality standard
Investments
The technical investments made in 2016 amount to Euro 535 million while Euro 11 million was spent on reacquiring 100 ownership of Maker srl followed by its amalgamation with Florim spa on 31 December The most important industrial projects included the continuation of the work on the Mordano plant which involved investments of Euro 26 million for the restructuring of the raw material preparation area and the doubling of production capacity for traditional porcelain stonewareThe investments of US$ 18 million at Florim USA were utilised to complete the renewal of the raw material preparation area and construct a new building for the technical organizationFinally about 9 million Euro was invested at Fiorano on various production line modernization projects
A creative hub for design style and new trends Milan once again confirms that it is the ideal setting for Florims investments and the opening of the all-new ldquoSpazio CEDITrdquo confirms the companys determination to strengthen its bonds with design professionals working in high-end interior design The culture of beauty art architecture and design are all integral to the genetic make-up of CEDIT ndash the historic Italian brand relaunched by Florim in 2016 ndash and dominate the display areas and the first six ceramic covering collections styled by famous names on the contemporary creative sceneOn two levels with a total floor area of more than 200 msup2 the space maintains the same stylistic identity as the one at Fiorano Modenese since they are both constructed to an architectural design intended to be replicated in CEDIT customers showrooms worldwide
Spazio CEDIT Watch theinauguration video
2016 Sustainability Report 19
Economic Value Generated and Distributed
The figures for the economic value generated and distributed provide a simple clear explanation of how Florim has created wealth and redistributed it to its stakeholders The table below contains the data from Florims 2016 financial statements approved by the Board of Directors on 30 March and certified by external auditorsThe economic value directly generated is represented by the total earnings for 2016 while the economic value distributed includes the costs incurred for suppliers and employees payments to the state (taxes) and the donations which had positive repercussions for the community to which Florim spa belongs
Heading 2014 2015 2016
Revenues 253125 269855 302521
Direct economic value generated 253125 269855 302521
Operating costs 135735 150951 168809
Employee wages and benefits 56985 58149 62418
Payments to providers of capital 7413 6399 11903
Payments to government 15738 13162 15382
Community investments 221 212 240
Economic value distributed 216092 228873 258752
Economic value retained 37033 40982 43769
KeyRevenues net sales plus revenues from financial investments and sale of assetsOperating Costs payments to suppliers non-strategic investments royalties payment facilitationsEmployee wages and benefits employee wages and benefits per employees (current payments)Payments to providers of capital all payments to the organizations providers of capitalPayments to government gross taxes and dutiesCommunity investments voluntary donations and investments in the communityEconomic value retained calculated as economic value generated less economic value distributed
The data in the table are in thousands of Euro and refer to the consolidated financial statements of the Italian companies only
KBIS (USA) - detail of the stand created with ldquoI Classici di Rexrdquo
2016 Sustainability Report20
Casa dolce casa ndash Argille 20 Collection
2016 Sustainability Report 21
Environmental ResponsibilityEffective environmental policy management energy saving and emissions reduction are amongst Florims strategic sustainability objectives
Our green projects in figures
2 highly-regarded process certifications
ISO 14001 (ENVIRONMENT)and ISO 50001 (ENERGY)
849873 MWh is the amount of electricity the
company succeeded in producing in-house during 2016
2 departments (marketing and communications)
engaged on digitizing advertising tools
8462 tons of CO2 NOT emitted
CO2
100 is the percentage of wastewater recycled
16000 msup2of photovoltaic panels covering
an area of 30000 msup2
75 is the percentage of the electricity consumed which is
produced in-house
4 latest-generation industrial kilns installed in
the last 3 years
4 different types of environmental product
certification
2 cogeneration plants to increase energy saving
and efficiency
1 laboratory for the development of contemporary design projects with a specific focus on the materials green
content
100is the percentage recycling of
industrial greenware waste in the production process
2016 Sustainability Report22
Certifications
System and process certifications
UNI EN ISO 14001TUumlV has awarded Florim the highly-regarded UNI EN ISO 14001 voluntary certification which confirms its compliance with a series of internally certified procedures intended to improve the internal environmental management system The decision to seek this certification springs from the desire to reconcile quality with efficiency and productivity while protecting the environment and community in which the company operates
UNI EN ISO 50001Thanks to a careful energy management policy and aided by the latest investments in the production area also intended to improve energy efficiency Florim was the worlds first ceramics manufacturer to obtain ISO 50001 certification of its Energy Management System
In addition to its environmental certifications Florim has also been awarded prestigious AEO (Authorized Economic Operator) status
Further to a lengthy and demanding audit process by the Customs Authorities in 2016 Florim was awarded AEO certification the first company in the Province of Modena to receive this major form of approval Authorised Economic Operator status guarantees the companys absolute compliance with customs and security requirements in its foreign trade
Environmental Management
Waste 2012 2013 2014 2015 2016
Total waste produced (t) 30228 21170 22300 30862 34423
Non-dangerous recyclable waste (such as paper and cardboard fired scraps plastic glass and wood) ()
989 982 985 991 989
Non-dangerous disposed-of waste (such as the waste picked up by the motor sweepers) ()
02 04 02 02 02
Dangerous recyclable waste (such as spent oil batteries and monitors) ()
00 01 01 01 00
Dangerous disposed-of waste (such as spent lime) () 01 13 12 07 09
Third-party waste recycled within the production process (t) () 4028 4190 1721 2570 5627
Besides recycling greenware waste from its own production cycle (not included in the table because the amount cannot be calculated) Florim also recycles third party waste
Florims operations have always been oriented towards optimization of impact on the local community and environment Thanks to the work of its research laboratories the support of all staff and the recent investment plans tangible results have been achieved The data provided below reveal that in spite of an increase in production of 8 compared to the previous year consumption remains low The companys commitment to environmental protection is all-inclusive and also comprises a focus on the district within which it operates One example is the total removal of all asbestos cement from the Fiorano Modenese plant and the creation of the new recycling station opened in 2015 and donated to the Local Authority as a public serviceAs in previous years during 2016 Florim was not fined for any breaches of environmental regulations or laws
Florim recycles and optimises within the production process all greenware scraps dust residues from filters and sludge from the process and rectification wastewater treatment system The waste produced is detailed in the table the significant differences between years are due mainly to the major demolition and subsequent reconstruction works undertaken at the Italian plants
Waste Management
2016 Sustainability Report 23
Water Resources
No environmental impact of wastewater discharges is specified since all the water from the production cycle is completely reused (100) All other effluents comply with legal requirements
The figure states the total cubic meters of water used per ton of finished product The water used in the Fiorano production process is drawn from private company-owned wells with water from the public main only used for non-industrial purposes The Mordano plant is supplied by an industrial water main Water use is measured by means of meter readings Four highly innovative dry rectifying plants have gone into production at Mordano since 2015 enabling the company to eliminate the physicalchemical treatment of the water used in the rectification process
WATER USE
2012
08
2013
08
2014
08
2015
07Total water consumption (msup3) finished product (t)
07
2016
All packaging used for Florim materials is made from recycled paper and parts of the coverings used to protect pallets of finished products consist of recycled plastic Whats more all the packaging used (boxes cardboard shrink wraps pallets etc) can be completely recycled by the end user The latest investments made include new eco-friendly packaging machines increasing the number of these machines installed to 15 These plants completely eliminate waste due to leftover inventory saving significant amounts of cardboard
Packaging and Coverings
As the materiality assessment states Florim has no significant impacts on the biodiversity of its local area since the company is located inside the Fiorano Modenese ceramics manufacturing district at least 5 Km from the nearest nature reserve at Salse di Nirano Florim takes special care over the choice of the raw materials used for its tile body mixes of which it is required to provide documentation guaranteeing compliance with the European Directives protecting wild birds (EU Dir 79409EEC) and habitats (EU Dir 9243EEC) and the United Nations Convention on the protection of biodiversity It has also introduced a software program - used at the 3 production plants (Italy and the USA) - for the management of data on the origin of raw materials such as quarry location distance from the factory recycled content declaration technical safety and radioactive content data sheets and the expiry of the quarrying permit issued by the government
Raw Materials and Biodiversity
2016 Sustainability Report24
Energy Management
There is no disputing that large amounts of energy are required to power the production processes of ceramic tile plants with consequent direct and indirect impacts on the local area and the environmentThe main indicator used to measure plants energy performance is the mean specific total energy consumption (TEJ) measured in GJt of product transferred to stock As the table below shows this figure is obtained by adding together heat consumption (NGJ) and electricity used (EEJ)
Parameter ndash Definition Unit of measurement
2012 2013 2014 2015 2016
NGJ Mean specific natural gas consumption in relation to the unit of weight of finished product transferred to stock
GJt 557 571 576 578 598
EEJ Mean specific electricity consumption in relation to the unit of weight of product transferred to stock
GJt 111 108 111 108 107
TEJ Mean total specific energy consumption in relation to the unit of weight of product transferred to stock
GJt 668 679 686 685 705
Self-generated electricity as a proportion of consumption
67 68 62 65 75
With two cogeneration plants (for the combined in-house production of heat and electricity) and 16000 msup2 of photovoltaic panels the company certainly sets a new benchmark for the entire ceramic tile industry 2016 saw the replacement of the Fiorano turbine set (the main component of the cogeneration plant) while the one in Mordano was kept in operation 247 factors which led to a 10 increase in in-house electricity production in relation to consumption To provide a clearer idea of the scale of the achievement the amount of electricity the company generated in-house in 2016 (849873 MWh) would cover the average annual consumption of about 37000 households (With consumption per household of 229 MWh - data from the latest ISTAT survey in 2012ndash calculated on the Italian average)
Photovoltaic Plant
kWp kWh produced kg of CO2 not emitted
270021 15937250 8462680
Good Practice
The head office organizations are also optimizing paper and energy consumption In addition to issuing and distributing the energy saving handbook for its offices the company is also trying to maximize savings on the raw material used and specifically the use of paper Internally the company only purchases reams of paper which carry environmental certification and the paper used in offices is collected separately for proper disposal Externally the company distributes a system of merchandising products made mainly from recycled paper and encourages the gradual digitization of its marketing tools as well as publishing all its catalogues in digital format on its Internet sites Florim offers its distributor companies an innovative digital touch screen tool with the pdf versions of the catalogues and other tools for the final consumerIn 2016 Florim decided to adopt a new payslip distribution procedure introducing an online processing system As well as providing employees with new functions and greater operating flexibility thanks to this system the company no longer prints out the monthly payslips saving paper ink and energy The scheme initially involving all office workers has the ambitious target of also including the staff of the Fiorano and Mordano plants
The 16000 square meter photovoltaic plant received recognition from GSE (Energy Management Services) as one of the most innovative installations of its type and from its commissioning (October 2011) up to December 2016 it produced the following results
2016 Sustainability Report 25
Atmospheric Emissions
The industrial facility emits greenhouse gases basically CO2 from the following main sourcesbull combustion from the burning of fossil fuels (such as natural gas)bull processes from the minerals in the raw materials any organic matter in the clays used and any organic additives in tile body mixes
In order to comply with Directive 200387EC (ETS - Emission Trading Scheme) Florim has been reporting and certifying its CO2 emissions since 2013
CO2 emissions 2013 2014 2015 2016
CO2 emissions (t) 102728 103462 111862 132960
CO2 emissions (t) Finished product (t) 033 033 033 035
Emissions from the production cycle 2013 2014 2015 2016
Particulate material (gmsup2 finished product) 223 130 098 118
Lead (gmsup2 finished product) 000 000 000 000
Fluorine (gmsup2 finished product) 014 018 013 012
The increase in CO2 is due mainly to the large increase in the square meters produced (+ 8) and the 247 use of the cogeneration plant However it should be noted that the cogeneration plant provided a 10 increase in in-house electricity generation with lower CO2 emissions than electricity purchased from the grid produced mainly using fossil fuels (source ISPRA Fattori di emissione atmosferica di CO2 e sviluppo delle fonti rinnovabili nel settore elettrico Rapporti [Atmospheric CO2 Emission Factors and Development of Renewables in the Electricity Sector Reports] 2122015)The ratio between CO2 emissions and tons of finished product produced increased because in 2016 the sale of spray-dried material to other companies rose compared to the previous year (emissions from this phase are included in the emissions count but there is no corresponding output of finished product)
In a change from previous years the new GRI-G4 guidelines also require reporting of nitrogen oxide and sulphur oxide emissions Nitrogen oxide (NOx) emissions are within the limits permitted under the integrated environmental authorisation Sulphur oxide (SOx) emissions are not reported here since this figure is not required by the IEA
Transport
The materiality study reveals that transport is a significant factor for both stakeholders and Florim itself The company is not able to measure the impact of transportation of finished product on the local area since all shipments are ex-works However Florim which has been introducing electric vehicles to replace its oldest most obsolete unleaded petrol forklifts for years now has further optimized the handling of materials thanks to the new highly-automated logistics hub created at the via Canaletto location In 2016 about 53 of the vehicles used on the companys premises were electric with no direct greenhouse gas emissions
2016 Sustainability Report26
CEDIT ndash Creative Composition
2016 Sustainability Report 27
Workforce Composition
In 2016 the workforce included 27 people with disabilities 6 women and 21 menBearing in mind the job descriptions arising from the specific industrial sector the breakdown between men and women is in line with the industry average Male office workers and executives earn an average of 10 more than women for jobs of equal responsibility Among blue-collar workers the difference is 7 The company had a total of 29 foreign employees 24 at Fiorano and 5 at Mordano
Manager Executive Office worker
2013 2014 2015 2016 2013 2014 2015 2016 2013 2014 2015 2016
Women 2 3 3 3 3 1 1 1 137 142 133 149
Men 18 21 20 18 21 24 25 28 127 132 128 132
Total 20 24 23 21 24 25 26 29 264 274 261 281
Office ancillary Blue-collar worker Total
2013 2014 2015 2016 2013 2014 2015 2016 2013 2014 2015 2016
Women 18 16 25 19 226 219 212 196 385 381 375 368
Men 64 68 79 64 376 358 356 377 607 603 607 619
Total 82 84 104 83 602 577 568 573 992 984 982 987
Social Responsibility
Employees amp Corporate welfare
Its employees are the heart and soul of Florim they provide its character and its DNA Since 2009 when the current major economic crisis began Florim has undertaken a number of income support programs for its workforce Below we summarise some of the ongoing programmes and others run in 2016bull Ending of the Income Support Program for the Mordano plantbull Agreement with Sassuolo Hospital under which Florim employees and their family members enjoy discounts and shorter waiting times for specialist examinations and outpatient diagnostic tests performed on a private basisbull Special agreements with local health facilitiesbull Tax advice at special rates bull Special terms for banking services with financial consultants on-sitebull Discounts on the purchase of Florim products for employees homesbull Free entry to the Peggy Guggenheim Collection in Venice for employees and concessions for family membersbull Free provision of water and mineral salts in the plants during the summerbull Distribution of fuel vouchers to employees for the Christmas holidays
Summer Play Schemes and Cregraveches
In 2016 the summer play schemes for the children of employees at Fiorano and Mordano were continued for the fifth year in succession Seven different centers across the area between Modena and Bologna hosted 85 children (twice the number of the previous year) the company paid the fee for two weeks attendanceWhats more since 2013 the company has negotiated special terms with local cregraveches which now offer a number of places for employeesrsquo children at a reduced fee
2016 Sustainability Report28
Human Resources Management Policies
In July 2015 on renewal of the in-house supplement to the national employment contract the Management introduced a new phase in its relations with the Trade Unions with the aim of continuing and improving the good relationships enjoyed for decadesThe new company contract applied for all employees at the Fiorano headquarters includes more facilitations for part-time working the willingness to allow flexitime where feasible and the commitment to invest in staff training in order to generate full benefits from intellectual capital The company and the trades unions agreed on a plan to improve efficiency fundamental for maintaining the current level of competitiveness by establishing improvement in Production Efficiency and EBITDA as criteria for the payment of the new Performance Bonus The individual Attendance Score is considered together with these parameters The 2016 Performance Bonus in its first year of application was 20 higher than that paid in 2015 In addition in response to employees requests the Company increased the number of approved canteens extending the choice available and also introduced weekly laundering of work clothing for all production workersWith regard to applications for severance pay advances the Company confirms its commitment to continuing the policy implemented so far
Training
Florim believes that in-house training plays a key role in the companyrsquos development and provides a tool for stimulating and fulfilling the potential of its human resourcesMore than 10600 training hours were provided in 2016 to 847 people with an average of more than 11 hours of training per employee New projects included a 6-month on-line English language course which attracted a large number of participants and two highly structured training courses for the sales division and the communication department A retraining program for workers at the Mordano plant was also completed it comprised 4 technical courses attended by 31 people for an average of 13 hours per person Another new entry for 2016 was an innovative procedure for acquiring information about training needs using an on-line questionnaire available to all employees as well as line managers specific recommendations The Master in Florim project is discussed in depth in the specific section
Health and Safety
Florim was the first Italian ceramics manufacturer to receive BS OHSAS 18001 (Occupational Health amp Safety Assessment Series) certification from TUumlV this international standard certifies the implementation of an internal management system oriented towards occupational health and safetyThis major award confirms the companys constant commitment to the well-being of its employees Every year in addition to engineering inspections and machinery maintenance a number of hours of safety training are organised to raise awareness among workers and supervisors Specifically in 2016 2849 hours were dedicated to safety training and a significant reduction in injury rates was recordedMoreover BLSD refresher courses are continuously held for the team of Florim employees trained in first-aid operations and the use of the defibrillators available on site
2012 2013 2014 2015 2016
Number of workplace injuries 63 62 74 56 43
2016 Sustainability Report 29
The Master in Florim organized for the fourth time in 2016 is a vocational training project which aims to bridge the gap between education (high school or university) and the world of work The program which is one of the companys Social Responsibility projects sets out to help young people to get to know the company through a well structured work experience plan It offers a distinctively northern European approach with a method which alternates classroom teaching with internships in the various areas of the company Participants new university or high school graduates specialising in various subjects all below 30 years of age are therefore able to gain hands-on experience of all Florim departments from RampD to the production process and product distribution for an all-inclusive vision The MASTER courses ambitious aim is to match the individual participants talents with the companys real needs At the end of each edition the company hires all or some of the selected candidates enabling it to acquire new skills new experiences and new energy
Master 40 in figures
20 young people taking part6 months of training13 external lecturers264 hours of classroom teaching392 hours of practical training4 company visits (Ferrari Tetrapak Cremonini and Ducati)50 days of work experience on rotation involving 15 departments1 month of project work
The projects prestige is enhanced by its economic context since Florim pays the young participants for the entire period and its aim is to deal with the thorny problem of youth unemployment The Master has won approval from various faculties at major Italian universities The project was also a winner in the Emilia-Romagna Regions 2016 awards for Corporate Social Responsibility projects run in the local community A prize in the ldquoBusiness and Educationrdquo category was assigned to the Master project which aims to give young people the skills required for sustainable development
Master in Florim
2016 Sustainability Report
Watch the videoof the 4th edition
2016 Sustainability Report30
Local Community amp Culture
This chapter describes a number of programs Florim runs for the local community in the area where it originated and where it has been working for more than 50 years
Politecnico di Milano
Since the 20052006 academic year Florim has been a partner sponsor of a large number of Postgraduate Courses run by POLIDesign the Politecnico di Milano consortium which organizes its Master Degree coursesAlso in association with POLIDesign since 2012 Florims Milan showroom has hosted several design events for architects and designers of every nationality
Aziende modenesi per la RSI
ldquoAziende Modenesi per la RSIrdquo an independent open inclusive association of companies in the Modena area which believe in the principles and values of Corporate Social Responsibility was established by public deed on 30 September 2014 with Florim as a founding member Florim hosts the associations member companies every year to discuss the various topics proposed
Premio Lucchese
The Premio Lucchese presented for the twenty-ninth time in 2016 was established in memory of Giovanni Lucchese and consists of scholarships awarded to students at the ldquoAlessandro Voltardquo Technical High School in Sassuolo who graduate with full marks The award ceremony held every year at the Florim Gallery in association with Societagrave Ceramica Italiana of Bologna includes a talk given by a leading personality on a topic of current interest to an audience of eager young listeners
Intrapresaelig Collezione Guggenheim
As befits a company that combines the values of its local community and historic and artistic heritage with a flair for research and innovation Florim recently launched a partnership with the Peggy Guggenheim Collection Since its foundation Florim has always had a unique ability to incorporate the true cultural significance of its industry in its business model and by this project once again confirms its commitment to promoting art by supporting a collection of extraordinary beauty
Fondazione Ing Giovanni Lucchese
More than thirty years after the untimely death of Giovanni Lucchese ndash founder of what was then Floor Gres currently Florim ndash in 2013 his family established a Foundation in his name which since then has funded organizations and associations that support families in need in the ceramics district The Foundation also supports a variety of projects such as the summer play scheme for employees children the Premio Lucchese and the Florim HealthampTraining Center described in more detail below
The main projects undertaken in 2016 include the funding of the purchase of 10 defibrillators for the Municipality of Fiorano and the contributions made to the purchase of paediatric ambulances for the local area and to support the Parish charitable organizations and social services in the district
Watch the Premio Lucchese video
The project run jointly by Florim and Sassuolo Hospital adopts a completely new model combining industrial culture and healthcare in an original way to benefit the local people and community thanks to the coming-together of a ceramic coverings manufacturer and the public-private joint venture Ospedale di Sassuolo Spa Florim HealthampTraining is the synthesis of this idea an experimental center which promotes local training for healthcare and other staff health education and information advanced medical simulation and research
The Center
On the main Florim site and opened on 16 April 2014 the Center is 550 square meters in area and contains a modular lecture theatre able to seat over 100 people and a number of classrooms for seminars and lessons At its heart is a state-of-the-art control room crammed with technology that operates dummies capable of reproducing human functions of all kinds Advanced simulation is a major aid to maintaining the skills of emergency healthcare workers with a particular focus on pediatric and neonatal resuscitation
Health meetings
Designed as a space for community use the Center also aims to become a place where all sections of the population - workers schoolchildren parents teachers volunteers and even just members of the public - can learn about preventive health care and acquire first aid skills After the distribution to Florim employees of a questionnaire surveying their training needs and preferences a Center Scientific Committee of Sassuolo Hospital medical personnel was appointed and drew up a plan of bi-monthly ldquoHealth meetingsrdquo All meetings are led by doctors with expertise in the various topics who answer the many questions from the audience at the end of their talks Between its opening and the end of December 2016 the Center hosted 13 meetings on a variety of topics attended by about 1000 people including employees their family members and the community at large
Healthcare discounts for Florim employees
The project also includes a major welfare program for all Florim employees and their family members entitling them to discounts and shorter waiting times for specialist examinations and outpatient diagnostic tests performed on a private basis
American Heart Association
The world-famous American Heart Association (AHA) is the oldest and most respected American voluntary organization dedicated to the fight against cardiovascular diseases and strokes In 2015 the AHA via the Simaid International Training Center named the Florim HealthampTraining Center as an Authorized Training Site for basic and advanced cardiopulmonary resuscitation
Florim HealthampTraining Center
2016 Sustainability Report
Watch the Health amp Training Center video
2016 Sustainability Report32
Product Responsibility
Here we summarize the concept of Made in Florim denoting a product that encapsulates the companys core values passion innovation a constant commitment to improvement and corporate social responsibility
Florim product certifications
CE Marking guarantees the user that the materials purchased meet the requirements of the relevant regulations and that the characteristics concerned are virtually unchanged for all production lots It is a declaration of conformity which protects the consumerrsquos safety The presence of the CE Marking on packaging guarantees that Florim products comply with the relevant regulatory requirements
Ecolabel (EC Regulation 662010) is a certification granted to products which comply with ecological and performance criteria set at a European level concerning raw material extraction supplier selection manufacturing processes packaging distribution use and disposal The certified Florim collections are Architech Ecotech Reverse Walks 10 by Floor Gres and Pietra del Nord under the Rex brand
Several ceramic tile collections bearing the Florim brands have earned certification from Bureau Veritas for their pre-consumer recycled material content These articles are therefore fully eco-compatible and can meet the environmental sustainability requirements imposed by many international certifications
Florim is a member of the US Green Building Council (USGBC) the most important association which promotes the reduction of buildings negative impact on the environment To allow the effective monitoring a projects level of sustainability the USGBC has developed a certification procedure for the development of sustainable buildings which assess and certifies the sustainability of a building in its entirety Florim materials are able to help to gain LEED points in a number of areas (data available on the Florim brand websites)
Florim has achieved the prestigious Greenguard certification for all its products Issued by the American body UL Environment this certification aims to reduce indoor pollution caused by interior design systems and materials UL Environment thus aims to protect health by improving air quality and reducing peoples exposure to chemicals and other pollutants Florim has also achieved Greenguard Gold Certification which imposes even stricter limits to confirm that a given product is suitable for use even in locations such as schools and health care facilities
The EPD or Environmental Product Declaration is a document which defines the environmental impacts arising from production In 2016 Florim participated in the study - certified by the German organization IBU - performed on the ceramics industry average data which aims to raise international awareness of the excellence of the environmental standards achieved
Beyond the standardsMade in Florim products are a guarantee of safety highly innovative content and eco-friendliness The people who produce them work in a safe place and in ethically sustainable conditions Due to their nature all Florim products are guaranteed free from pollutant emissions do not accumulate electrostatic charges are frostproof and completely inert and are undamaged by contact with flames The Groups Internet sites and collection catalogues contain the technical data sheets which detail the product information (slip-resistance breaking strain abrasion resistance etc) for every collection as well as its recycled material content with the relative certificates
During the period under consideration no banned products were placed on the market and the company was not found guilty of any breaches of the law with regard to data protection or its marketing and communication activities
EU Ecolabel nr IT2104
2016 Sustainability Report 33
Quality SystemThe current ISO 9001 standards define quality as the ability to satisfy explicit or implicit needs via a product or a service A Quality System implies constant improvement of company processes in order to realise products that always satisfy the customerrsquos needs Further to the 2016 audit Florim obtained the renewal of its UNI EN ISO 90012015 certification for the design manufacture and sale of all categories of ceramic tile
Objective Indicator 2012 2013 2014 2015 2016
Continual improvement of control of the production process
Percentage of First Grade Product ()
924 943 942 952 956
Quality rate () 883 905 903 905 909
Scrap rate () 44 41 42 42 49
Productivity (sq mhour) 186 188 186 190 200
Improvements in sales performance and customer satisfaction
Innovation rate () 330 296 367 455 364
Coverage () 795 714 814 813 816
Total portfolio shippable within one month ()
911 837 888 893 897
Optimization of range and stocks
Obsolete stock () 172 126 165 120 69
Stock turnover rate () 13 15 16 15 16
Gradual elimination of disputes complaints and claims concerning service
Square meters affected by complaints ()
17 12 08 12 09
Complaints by number of order items ()
10 11 11 10 10
Gradual improvement in staff skill levels
Employee turnover () 15 23 04 04 12
KeyPercentage of first grade product percentage ratio between the square meters of first grade products and the total square meters transferred to stockQuality rate percentage ratio between the square meters of first grade product transferred to stock and the square meters leaving the pressesScrap rate percentage difference between square meters of material leaving the presses and square meters of product actually transferred to stockProductivity ratio between the square meters transferred to stock and the total hours worked in the plantInnovation rate ratio between square meters sold belonging to series designed in the last three years and total square meters sold Florim uses this indicator to assess the effectiveness of its design process in terms of salesCoverage percentage ratio between square meters available for immediate shipment and the square meters on orderTotal portfolio of orders shippable within one month percentage ratio between the square meters which can be shipped in 30 days and the square meters on orderObsolete stock percentage ratio between the square meters of substandard discontinued produce and the total square meters in stock Stock turnover rate ratio between the square meters sold and the square meters in stockSquare meters affected by complaints percentage ratio between the square meters affected by complaints and the square meters soldComplaints by number of order items percentage ratio between the number of complaints and the number of items orderedEmployee turnover percentage ratio between the number of employees leaving the company and being replaced and the workforce at the start of the year
2016 Sustainability Report34
Casamood - Neutra 60 Collection
2016 Sustainability Report 35
OUR COMMITMENTS
The promises we keptIn our last Sustainability Report we committed to achieving a large number of objectives the following are the outcomes we attained
Relaunch of the ldquoCEDIT ndash Ceramiche drsquoItaliardquo brand OBJECTIVE ACHIEVED
Launch of the FLORIM stone brand OBJECTIVE ACHIEVED
Installation of a new latest-generation kiln at the Mordano plant OBJECTIVE ACHIEVED
Transfer of the Moscow showroom to new premises SCHEDULED FOR 2017
Creation of a new gatehouse at the Mordano plantOBJECTIVE POSTPONED TO GIVE PRIORITY TO THE CONSTRUCTION OF THE NEW FACTORY
Introduction of ERP system at Florim USA OBJECTIVE ACHIEVED
Installation of a new spray dryer and raw material handling system at Florim USA
OBJECTIVE ACHIEVED
Economic Responsibility
Renewal of certification of the Florim environmental and energy management system
OBJECTIVE ACHIEVED
Award of new certifications for collections manufactured with a high recycled material content
OBJECTIVE ACHIEVED
Continuation of work to reduce environmental impacts at Mordano especially with the reduction of energy costs
OBJECTIVE ACHIEVED
Continuation of the work to remove asbestos cement roofing materials at the Mordano plant
OBJECTIVE ACHIEVED
Expansion of the system which conveys rainwater to the treatment plant OBJECTIVE ACHIEVED
Reduction of the noise emissions of the air filtering systems OBJECTIVE ACHIEVED
Increase of recycling targets through constant awareness-raising amongst all staff and optimisation of recycling facilities
OBJECTIVE ACHIEVED
Continuation of replacement of the diesel forklift trucks for use on outdoor yards with electric vehicles
OBJECTIVE ACHIEVED
Environmental Responsibility
Running of fourth edition of Master Florim course with new procedures OBJECTIVE ACHIEVED
Creation of an internal refreshment area for the Fiorano office staff OBJECTIVE ACHIEVED
Improvement of corporate welfare through the activation of new free services and discounts tailored to employees needs
OBJECTIVE ACHIEVED
Continuation of the health meetings for the local community in association with Ospedale di Sassuolo Spa
OBJECTIVE ACHIEVED
Organization of new community events at Florim Gallery OBJECTIVE ACHIEVED
Organization of Florim Family Day 2016 A PARTY WAS ORGANISED FOR EMPLOYEES
Social Responsibility
2016 Sustainability Report36
The targets we set for ourselvesWe aim to achieve the following objectives in 2017
Economic Responsibility
Construction of a new factory at Mordano to produce large slabs
Launch of the project to unite the Florim spa sales organizations
Total restyling of the corporate and brand Internet sites
Launch of the HUB project - Intranet CRM Marketing Automation
New plants at Florim USA a press two sorting lines a polishing and rectifying line
New working spaces and cloakrooms for technical staff at the American plant
Environmental Responsibility
Purchase of a new cogenerator for the Mordano plant
Introduction of a new rainwater collection system at Fiorano
Land reclamation project involving covering of the Rio Spezzano stream at Fiorano
Implementation of new software for continual monitoring of energy impacts at Fiorano
Modernisation of the compressor room to improve energy impacts at Mordano
Increase of recycling targets through constant awareness-raising amongst all staff and optimisation of recycling facilities
Continuation of replacement of the diesel forklift trucks for use on outdoor yards with electric vehicles
Social Responsibility
Improvement of corporate welfare through the activation of new free services and discounts tailored to employees needs
Continuation of the health meetings for the local community in association with Ospedale di Sassuolo Spa
Organization of new community events at Florim Gallery
Organization of a new event for Florim spa employees
New offices for hospitality and events staff at Fiorano
2016 Sustainability Report 37
FLORIM USA
Profile and Economic ResponsibilityFlorim USA with registered office at Clarksville - Tennessee - and its subsidiary Florim Solution Inc have been part of the Florim Group since 2000 The Florim USA manufacturing plant one of the largest most technologically advanced in the United States produces porcelain stoneware tiles for the residential market and undertakes commercial projects in North America During the last few years Florim USA has implemented a growth and process optimization strategy which has generated significant technological progress with more innovations planned for the future The strategy adopted will put Florim USA at the worldwide state of the art in porcelain stoneware tile manufacture
In 2016 of the 18 million USD invested 147 was allocated for installation of a latest-generation raw material handling system and a large spray-dryer with an innovative sorting system Improvements were made to other parts of the process to increase their efficiency leading to a further reduction in emissions and scrap rates Additional investments are planned during 2017 to continue this dual trend of rising production with mitigation of environmental impact
The new Florim Flagship Store in New York (152 Madison Avenue 32nd Street)
2016 Sustainability Report38
Environmental ResponsibilityFlorim USA implements the same environmental policy as Florim and is committed to achieving the following objectives
bull reduction of the energy used in the production processbull improvement of the waste management process with a focus on recovery and reusebull introduction of new more eco-efficient technologiesbull adoption of integrated management systems
Florim USA has been pursuing a strategy of careful management of its operations and environmental impact for a number of years Here we summarise the main actions taken and the results achieved in 2016
bull installation of a latest-generation spray-dryer in 2016bull installation of an innovative raw material handling system in 2016bull 100 recycling of wastewater within the processbull optimisation of the management of water bottles with elimination of about 34200 of them per annumbull reuse of almost all production scrap (+99)bull 157000 kg of cardboard recycled in 2016bull award of two different types of product certificationbull 9300 kg of plastic recycledbull recycling of 17 complete trucks of pallets
Environmental Projects and Awards
Florim USA has received Clarksville Montgomery County Green Certification (CMCGC) CMCGC is a program designed to help companies learn and implement best practices in the area of environmental stewardship to sustain the local communityrsquos resources through a series of free workshops taught by local environmental specialists Since 2014 Florim has allocated some of its Environment Managers time for the running of these workshopsFlorim USA earned this green company certification thanks to a large number of projects first and foremost the one which eliminated the use of disposable water bottles replaced with individual reusable bottles provided by the company and a series of fill-up stations About 34200 bottles are removed from the waste cycle every year
During the latest phase of its plant optimization Florim USA has implemented a thorough construction material reuse policy In the various stages of demolition of the old plants including the old storage silos the concrete debris was recovered and reused in other construction worksThis project alone generated 11500 tons of recycled aggregate as well as several hundred tonnes of metal sold to a recycling firm
Environmental management system and eco-compatible products
Florim USArsquos products help builders and designers to meet the requirements for sustainable buildings as defined by the United States Green Building Council (USGBC) through the LEED Green Building Rating System This protocol evaluates and certifies the environmental sustainability of a building as a unit from its design to its day to day management To gain LEED credits many of the Florim USA product lines contain a significant percentage of recycled material (40 or more)This feature contributes to an increase in the LEED score in the projects where these products are installed In 2014 Florim USA together with a large number of other US tile manufacturers and the Tile Council of North America drew up a type III environmental product declaration (EPD) certified under the ISO 14025 standard This ceramic tile life-cycle analysis enables Florim USA products to gain LEED points under the new LEED v4 protocol
2016 Sustainability Report 39
Water use (gallonsper million square feetof finished tiles)
208137 216246 204962 195280 194268
Energy use
2012 2013 2014 2015 2016
Cubic feet of natural gas per million square feet of finished tiles 9343383 9149721 8331170 8390503 8380000
kWh per million square feet of finished tiles 510972 491171 450594 465976 490300
Emissions
Particulate material lt 21024 tonnes per annum
SO2 (sulphur dioxide) lt 1674 tonnes per annum
VOC (volatile organic compounds) lt 1245 tonnes per annum
NOx (oxides of nitrogen) lt 1501 tonnes per annum
Environmental performance indicators ndash summary
The following are the main environmental indicators related to the impact and performance of Florim USA during 2016
Pre-consumer recycled material
Its internal material recycling processes enable the company to minimise its environmental impact since most of the material which would otherwise be sent to landfills or other waste treatment centers is reusedbull Wastewater is entirely recycled within the production process without any discharge into the municipal drainsbull The material in the collection bags from the tile body and glaze preparation areas the press and glaze application is entirely recycled within the processbull All scrap fired tiles are entirely recycled within the processbull 157000 kg of cardboard was sold to an external recycled material dealerbull 17 trucks of unusable wooden pallets were sold to a pallet regeneration companybull About 9300 kg of waste shrink-wrap plastic film was recovered and recycled
Post-consumer recycled material
About 82000 kg of glass was removed from the flow of waste destined for the local landfill and recycled within the process Florim USA has signed an agreement with the local landfill for consignment of all the glass it handles which is collected and set aside for recycling
Water use disposal and reuse
The water used during the production process is recycled continually therefore no water is discharged into the municipal drains
The 2016 emissions figures are in line with those for previous years well below the standards laid down
Water use 2012 2013 2014 2015 2016
Water use (gallons per million square feet of finished tiles) 216246 204962 195280 194268 203928
2016 Sustainability Report40
Social Responsibility
Employees
The Florim USA workforce comprises 348 staff employed at the production site the Clarksville and Nashville outlet stores and the Florim Solution offices Of the 348 employees 273 are blue-collar workers and 75 office staff 5 employees are Italians on secondment to the United States Florim USA offers a number of benefits to full time employeesbull health and dental care insurancebull Vision insurancebull life insurance for employees and optionally for family membersbull temporary and permanent disability supportbull employee pension plan
2012 2013 2014 2015 2016
Workplace injuries 50 41 22 29 27
The Employee Assistance Program (EAP) also offers support to employees and their families in the event of psychological difficulty or other problems that can have a negative impact on their quality of life Florim USA supports all the costs of the program
Equal opportunities
Florim USA provides equal opportunities in all employment practices to all qualified employees and applicants regardless of race colour religion gender national origin age disability or membership of the armed forces or any other category protected by federal state or local laws
Health and safety
FLORIM USA is committed to ensuring a safe healthy workplace for all employees It therefore replaces old and obsolete equipment with new technologically more modern machinery and updates safety plans as new information gradually becomes availableAs well as an internal supervisor Florim USA has also appointed a health and safety committee which constantly monitors the plans effectiveness and makes any changes requiredThere are currently 20 plant employees who hold CPRfirst aid qualifications They occupy a variety of positions and work different shifts within the plant and have volunteered to attend training courses sponsored by the company for the award of these qualifications
Training
In 2016 every Florim USA employee attended an average of about 25 hours of training The training provided covered the operating procedures for the new equipment the main safety plans and the procedures for use of existing equipment for new employeesAll new staff undergo specific training for their department focusing on the safety-related aspects of the department concerned as well as more generalized safety training
Some of these themes includebull safe correct use of forklift trucksbull training on work in confined spacesbull shutdownwarning procedures and safe electrical practicesbull safe lifting procedures
2016 Sustainability Report 41
Florim USA ndash (Clarksville Tennessee)
For employees wishing to continue their education Florim USA offers assistance through the Educational Assistance Program It provides aid with the cost of education and textbooks and is available for any employee wishing to study for a technical qualification a diploma or a degreeThe plant staff training and education plan also includes various training schemes at Florim Italy where employees are instructed in the use of new equipment before it is installed at the American plantThroughout 2016 Florim USA will continue to provide a free e-learning course on its website for architects engineers and contractors (AEC) to improve their knowledge of sustainable porcelain stoneware tiles
Employee welfare activities
Florim USA employee picnic - In 2016 the company once again held its annual picnic for employees offering them a wide variety of foods games activities and live shows in an event which provided an unforgettable days enjoyment Within the event participants received prizes in the form of vouchers and gifts
Employee anniversary dinner - 2016 again saw the usual dinner to honour Florim USA employees with 5 10 15 20 or more years of service A special evening event was held in the presence of the Chairman and the other managers to celebrate the loyalty and hard work these employees have contributed during their careers with the firm
2016 Sustainability Report42
Local Community
During 2016 Florim USA continued to provide its support to a number of projects in its local areaSome of the main projects include
Scholarships - As part of its work to support the local community Florim has an established scheme which awards scholarships to deserving students at the Austin Peay State University in memory of Florim Group founder Giovanni Lucchese In December 2016 a delegation of Florim representatives attended a scholarship presentation lunch at the Austin Peay State University hosted by the President of the University
Montgomery County Green Certification Program - Florim USA staff actively participate in the Montgomery County Green Certification Program which aims to help companies learn and implement best practices with regard to safeguarding the environment and environmental resources
Donations - In 2016 the company again made a large number of donationsbull book collection for the Austin Peay State University Employees made a generous donation of used books in good condition for children and young people of the APSU in the hope of further promoting the education of future generationsbull to Community Cares the national organization that promotes the acceptance and social inclusion of individuals with Downs Syndromebull to the Aspire Clarksville Foundation a 501(c)(3) charitable foundation whose mission is to continuously improve the economy and the livability (quality of life) of the community by attracting significant capital investment and expansion by businesses and corporations thereby creating better opportunities and higher paying jobs for residentsbull to the Alzheimerrsquos Association a non-profit voluntary organization dedicated to the care and support of Alzheimers Disease sufferers and research into the condition Its aim is to eliminate the disease through the advancement of research to provide and enhance care and support for all affected and to reduce the risk of dementia through the promotion of brain health
Other activities - Every year Florim USA participates in the United Way Drive initiative to support local non-profit organizations which provide economic assistance and psychological support to persons in difficulty
Florim USA provides regular support to the Salvation Army by collecting canned foods for persons in needIn 2016 the company again organised a canned food collection for Manna Cafeacute in Clarksville TN Manna Cafeacute is a local non-profit organization based in Middle Tennessee with the primary mission of meeting peoples fundamental need for food before encouraging them to permanently change their lives for the better More than 15 of the population in Montgomery County are affected by food insecurity (about 28000 people) The percentage of children affected is about 215 a third of whom are excluded by income from federal programs such as free school mealsFinally donations were made tobull American Lung Association the leading organization working to save lives by improving lung health and preventing lung disease through research and educationbull Cheer for a Cure an organization that gives money directly to afflicting families who have a loved one suffering from cancer and need assistance to alleviate the added financial stressbull Habitat for Humanity Since 1992 Habitat for Humanity in Montgomery County Tennessee has worked with 93 low-income families with more than 210 children to revitalise various parts of Clarksville-Montgomery County by building new homes
2016 Sustainability Report 43
Quality SystemFlorim USA works under a Quality System certified to UNI EN ISO 9001 standards The following are some of the figures in brief
Objective Indicator 2012 2013 2014 2015 2016
Optimisation of control of the production process
Percentage of First Grade Product ()
932 917 940 949 9510
Quality rate () 883 857 893 906 909
Scrap rate () 56 65 48 45 45
KeyPercentage of first grade product ratio between square feet of first grade material and total square feet transferred to stockQuality rate ratio between square feet of first grade material transferred to stock and square feet pressedScrap rate ratio between square feet pressed and square feet of product actually transferred to stock
Other ActivitiesFlorim USA and trade shows
In 2016 Florim USA participated at a number of shows and events including Coverings the AIA Tennessee Convention Hardscape North America Total Solutions Plus Neocon International Pool - Spa and Patio Expo These events targeted at the various categories of industry professionals such as dealers and designers gave Florim USA the opportunity to present its new range of indoor and outdoor products
Design Center
In December 2015 Florim USA opened a design center showroom in Nashville (TN) in a strategic location close to the airport and the city center With a spacious area to host individual CEU presentations and workshops this design center has the potential to be a major resource for local architects In 2016 it was also awarded the ldquoOutstanding Boothrdquo booth prize at the 33rd edition of the Annual Home Decorating and Remodeling Show The location is the ideal place for sharing ideas finding inspiration and putting professionals and architects in touch with each other
Florim Nashville Design Center
2016 Sustainability Report44
GRI International Sustainability Indicators SDGsThe information below illustrates the correspondence between the Florim (Italian companies) 2016 Sustainability Report the GRI-G4 guidelines and the icons of the Sustainable Development Goals (SDGs) definitively adopted by the United NationsA description of the SDGs is available at wwwglobalcompactnetworkorg
GRI indicators
Description Page Reference to SDGs
1 Strategy and Analysis
G4-1 Statement from the most senior decision-maker of the organization 5
2 Organization profile
G4-3 Name of the organization 2
G4-4 Primary brands products andor services 9
G4-5 Location of the organizations headquarters 9
G4-6 Number and names of the countries where the organization operates 9
G4-7 Nature of ownership and legal form 14
G4-8 Markets served 9
G4-9 Scale of the organization 8 8
G4-10 Significant changes regarding size structure or ownership 8
G4-11 Employees covered by National Collective Bargaining Agreement 27
G4-12 Describe the supply chain 16
G4-13Significant changes regarding the organizationrsquos size structure ownership or its supply chain
Reporting process
launched
G4-14 Precautionary principle 22
G4-15 List of external commitments in which the company is involved 22 32 33
G4-16 Associations or interest groups in which the company is involvedwwwflorimit gt
about us gt partnerships
3 Identified material aspects and boundaries
G4-18 Process used to define the report content 6
G4-19 Material aspects 16
G4-20 Boundaries of each material aspect 6
G4-21 Boundaries of each material aspect outside the organizationPartial reporting
(pages 6 16)
G4-22 Explanation of the effect of any restatements of information provided in previous reports 6
G4-23Significant changes from previous reporting periods in the scope boundaries or measurement methods
6
3 Stakeholder engagement
G4-24 List of stakeholders 15
G4-25 Identification of stakeholders 15
G4-26 Stakeholder engagement 6 16
G4-27 Key topics and concerns that have been raised through stakeholder engagement 16
4 Boundary of the Report
G4-28 Reporting period 6
G4-29 Date of publication 2
G4-30 Reporting cycle 6
G4-31 Contacts and addresses for additional information 46
5 GRI Content Index
G4-32 Reporting option chosen 6 7
G4-33 External assurance of ReportThe Report is not
externally assured
2016 Sustainability Report 45
GRI indicators
Description Page Reference to SDGs
6 Governance
G4-34 Governance structure 14
7 Ethics and integrity
G4-56 Values principles standards and norms of behavior 13 16
Economic performance indicators
EC1 Direct economic value generated and distributed 19 25789
EC5 Wages 27 158
EC7 Development and impact of infrastructure investments and services supported 23 24 31 257911
Environmental performance indicators
G4-EN2 Percentage of materials used that are recycled input materials 17 22 23 812
G4-EN3 Energy consumption within the organization 24 781213
G4-EN6 Reduction of energy consumption 17 24 71213
G4-EN7 Reductions in energy requirements of products and servicesPartial reporting
(page 22)71213
G4-EN8 Total water withdrawal by source 17 23 6
G4-EN10 Percentage and total volume of water recycled and reused 17 21 23 612
G4-EN11 Biodiversity 23 615
G4-EN15 Total indirect greenhouse gas emissions by weight 25 3121315
G4-EN16 Total indirect greenhouse gas emissions by weight 25 3121315
G4-EN19 Reduction of greenhouse gas emissions 8 24 1315
G4-EN21 NOx SOx and other significant air emissions 25 31215
G4-EN22 Total water discharge by quality and destination 23 6
G4-EN23 Total weight of waste by type 17 22 3612
G4-EN27 Impact mitigation of environmental impacts of products and services 23 68121315
G4-EN29 Monetary value of significant fines 22 16
G4-EN30 Significant environmental impacts of transporting products and goodsmaterialsPartial reporting
(page 25)111213
Social performance indicators
G4-LA1 Total number and rates of new employee hires and employee turnoverPartial reporting
(pages 17 27)8
G4-LA6 Workplace injury ratesPartial reporting
(page 17)38
G4-LA9 Average hours of training per year per employee 28 48
G4-LA12Composition of governance bodies and breakdown of employees according to gender age group etc
27 58
G4-LA13 Ratio of basic salary and total remuneration of women to men 27 5810
Society
G4-SO1 Operations with local community engagement 12 31 16
G4-SO3 Operations assessed for risks related to corruptionPartial reporting
(page 13)
Product responsibility
G4-PR1 Assessment of health and safety impacts for improvement 23 32
G4-PR3 Type of information about products and services required by the procedures 32 12
G4-PR5 Proceedings relating to customer satisfaction including surveys conducted to measure it 33
G4-PR6 Sale of banned or disputed products 32
G4-PR8 Number of substantiated complaints regarding breaches of privacy 32 16
2016 Sustainability Report46
Your Assessment
You are kindly requested to take a few minutes of your time to give us your assessment and any suggestions to enable us to improve future editions of our Sustainability Report
Click here to send us your feedback
To keep up to date with our business
Spazio CEDIT - interior (Milan)
wwwflorimiten
Florim Ceramiche
Florim4Architects
Florim_ceramiche
Florim Ceramiche spa
Florim Ceramiche
Florim Ceramiche
For any further information please feel free to contact our communications department comunicazioneflorimit
2016 Sustainability Report 47
Premio Lucchese - Florim Gallery (Fiorano Modenese - Modena Italy)
Intrapresaelig Guggenheim Collection - Massimo Bottura in Florim Gallery (Fiorano Modenese - Modena Italy)
Panathlon Christmas Gala - Florim Gallery (Fiorano Modenese - Modena Italy)
2016 Sustainability Report48
White Christmas Party - Florim Gallery (Fiorano Modenese - Modena Italy)
Cersaie - Mario Biondi in Florim Gallery (Fiorano Modenese - Modena Italy)
Dal buio alla luce - Social event at Florim Gallery (Fiorano Modenese - Modena Italy)
2016 Sustainability Report 49
Florim Gallery entrance (Fiorano Modenese - MO)
2016 Sustainability Report52
Florim Ceramiche spaVia Canaletto 24 - 41042 Fiorano Modenese (Modena Italy) - Tel +39 0536 840111 - wwwflorimit
2016 Sustainability Report 11
Our 2016In this section we focus on the latest news from the Group covering a wide variety of aspects but all confirming the importance of Florims large slabs and once again underlining the centrality of innovation for the companys business
New brands
In April Florim chose the Salone Internazionale del Mobile a major event for the global design community for the relaunch of the CEDIT - Ceramiche drsquoItalia brand The brand which has always had links with leading artists designers and architects has achieved a superlative creative standard over more than fifty years of experimentation with materials and stylistic research in ceramic design CEDIT is returning to the forefront of Italian manufacturing in partnership with some of contemporary Italys top creative names Its new identity is a fine blend of Craftsmanship and Innovation expressed on the large slabs produced by Florim technology December saw the official opening - in the heart of Milan - of the first Spazio CEDIT the tangible expression of an innovative display concept created to convey the brands philosophy to the world
The brand created to explore new application solutions reaching beyond the conventional construction concept is called FLORIM stone Launched at Cersaie - the biggest ceramics industry show - this brand combines the outstanding performances of porcelain stoneware with the utmost personalisation of spaces The dimensional and functional plus factors of latest-generation large slabs allow stoneware to be used in a versatile customized way not just as a wall and floor covering but also for tops and furnishings (tables kitchen worktops and bathroom counters doors and fireplaces are just some of the possible applications)
New look
A busy year partly due to the refurbishment of the Fiorano Modenese headquarters As well as the new gatehouse the faccedilade of the office building was also restyled bringing it up to date with an all-white lookAn innovative modification at the technological state of the art was made to the raw material shed with a ventilated faccedilade of almost 1900 msup2 of Magnum Oversize large slabs The installation reproduces the ldquoArcheologierdquo collection (designed by artist Franco Guerzoni for CEDIT) and the lake of Vernago in Italys Alto Adige region (photo by Vanni Borghi) A latest-generation project leading the way in technology safety and maintenanceLast but not least a new barrier was also designed and constructed to separate the Florim property from the SFrancesco road It took 3 months to erect a boundary fence of about 340 meters of double-sided porcelain stoneware slabs 180 cm high and 265 cm wide supported by a steel frame With a total of 1122 slabs the fence was designed to withstand weather earthquakes and the forces generated by traffic passing at high speeds Installed at different angles the slabs create attractive effects with light and shade demonstrating the importance of sophisticated aesthetics to the companys identity
New Awards
Florims large slabs are the featured products in the various awards received and have been assigned one of the most important accolades in the design world with an Honourable Mention at the XXIV edition of the ADI Compasso drsquoOro awards
Just a few months after its launch the CEDIT brand also received major awards at the global level the NYCxDESIGN Award in New York the Hospitality Design Awards in New York ldquo100 Best of 2016rdquo at the Archiproducts Design Awards 2016 and the Best of the Best (April 2017) in the Design Product category at the coveted German Red Dot Design Award
More recognition came from the Emilia-Romagna Regions 2016 awards for Corporate Social Responsibility projects run in the local community A prize in the ldquoBusiness and Educationrdquo category was assigned to the Master in Florim project which aims to give young people the skills required for sustainable development
Learn moreabout CEDIT
Learn moreabout FLORIM stone
2016 Sustainability Report12
In the age of digital transformation Florim still believes in the importance of creating opportunities for meeting and exchanging ideas and in 2016 more than 12000 people came to the Florim Gallery (a multi-purpose space of 9000 msup2 at the Fiorano headquarters) Events of social usefulness workshops community projects and business occasions our training events and hospitality staff were busy on many different fronts It was also a major year for off-site events The Florim Flagship Store in Milan and the just-opened New York Flagship Store hosted more than 3200 people at events for architects and designers supported with important partnerships with POLIdesign and leading publishersFlorim also chose the world-famous Peggy Guggenheim Collection in Venice as the location for two exclusive events to highlight the partnership agreement signed with Guggenheim Intrapresaelig A dinner in the wonderful setting of the museums panoramic terrace followed speeches by distinguished guests Ettore Mocchetti Martino Gamper Domitilla Dardi Giorgia Zanellato Daniele Bortotto Franco Guerzoni and Benedetto Fasciana The final event of the year was held for the employees with a ldquoWhite Christmas Partyrdquo evening at a Florim Gallery decorated for the festive season
A year of Florim events
LrsquoArte del Design - Florim event at the Peggy Guggenheim Collection (Venice)
2016 Sustainability Report
View the Florim eventat the Guggenheim
2016 Sustainability Report 13
GOVERNANCE
Code of EthicsThe groups governance plays a central role in the responsible development of its business ensuring ethical transparent management of its operations with its stakeholders interests always in mind
After approving the Governance Model compliant with the provisions of Italian Legislative Decree 2312001 the Florim Board of Directors signed and promoted the corporate Code of Ethics (revised in June 2016) which has become an integral part of Florims business and is accepted by every new employee supplier and agentTo guarantee the application of and compliance with its contents a Supervisory Board was established to detect any breaches of its provisions All stakeholders can also contact the Supervisory Board (organismodivigilanzaflorimit) for further explanations regarding the interpretation and application of the corporate Code of Ethics as described on the corporate websiteThe following is an extract from the rules of conduct which govern the way we do business
Our mission
To manufacture ceramic tiles and materials for multiple uses and offer the most appropriate solutions for both interior design and architecture To constantly prioritise environmental sustainability attempting to satisfy the needs of customers and to create value for shareholders employees and the local community in compliance with the ethical principles and rules of conduct set out in the Code of Ethics
Our vision
To be at the cutting edge of technical and design innovation in ceramics by developing materials and production methods that position us as a constant benchmark for customers architects and competitors
Our values
Honesty and Respect all internal and external relationships must be based on honesty and respect for rules and dignity of the individual
Corporate Social Responsibility corporate social responsibility must be promoted through measures and practices adopted to support the local environment and community
Individual Responsibility everyone must be aware of the worth and consequences of their own actions
Quality and Innovation excellence must be pursued by improving products processes and skills to promote corporate success
Transparency intentions and positions must be expressed openly and clearly without misunderstandings or misrepresentation to build lasting relationships based on trust both inside and outside the company
Courage a moral strength which enables us to undertake and deal with changes difficulties and challenges to benefit from all the opportunities they offer
Feeling of Belonging feeling proud to be a part of one big team made up of the company associates customers and suppliers
Management System Policy
To achieve greater and greater transparency in its reporting the company has drawn up guidelines for its quality environment safety and energy management system Read more
2016 Sustainability Report14
Corporate BodiesFlorim Ceramiche spa is a family-run business with fully subscribed paid-up share capital consisting of 50000000 ordinary shares with a face value of 1 Euro each The capital is 100 owned by the holding company FinFloor spa with registered office in Fiorano Modenese which is in turn indirectly owned by the Lucchese family through Fin-Twin spa
The Board of Directors has 11 members
CLAUDIO LUCCHESE Chairman
DONATO BRUNI Deputy Chairman
MARIADELE LUCCHESE Director
ANNA LUCCHESE Director
FRANCESCA LUCCHESE Director
GIOVANNI LUCCHESE Director
The Board of Directors has a mandate of one year and new elections will coincide with the approval of the financial statements The Board of Statutory Auditors is composed of three members whose term of office is three years from their appointment on 1252016 until approval of the 2018 financial statements The financial statements of Florim spa and the consolidated financial statements of FinFloor spa and Fin-Twin spa are audited and certified by Deloitte spa
Corporate StructureThe changes to be noted since the previous financial statements include the incorporation of ldquoMordano 4 srlrdquo and amalgamation by acquisition of Maker srl in Florim Ceramiche spa
KRONOS 2 CERAMICHE spaShare capital euro 1646799
Fondazione Ing G LuccheseEndowment euro 60000
FABBRICA delle MATERIE srlShare capital euro 10000
EDIL FLOOR surlShare capital euro 9812681
ISABELLA srlShare capital euro 100000
FI HOLDING IncShare capital USD 50000
100
10
100
30
9667
100
1
1
99
99
100
FIN TWIN spaShare capital euro 540800
FINFLOOR spaShare capital euro 10500000
542810
FLORIM CERAMICHE spasingle shareholder companyShare capital euro 50000000
100
FLORIM BRASIL LtdaDISTRIBUICcedilAtildeO DE CERAcircMICAS Ltda
Share capital R$ 46100000
FLORIM RUSShare Capital 100000 Roubles
FLORIM USA incShare capital USD 51865541
FLORIM SOLUTION IncShare capital USD 845943
100
MORDANO 4 srlShare capital euro 100000
85
FLORIM FAR EAST PTE LtdShare capital S$ 10000
100
ERMES GIUSEPPE FERRARI Managing Director
GIOVANNI GROSSI Managing Director
OSCAR ISEPPI Managing Director
DORVAN SAZZI Managing Director
STEFANO TORRENTI Managing Director
2016 Sustainability Report 15
StakeholdersStakeholders are all individuals and groups who may influence or be influenced by a companys operations in terms of policies products and working processes shareholders employees customers and consumers suppliers local government the local community banks and trade unions
Employees and Trade Unions
Florim makes the following commitments to its employees
bull to guarantee equal opportunities fair pay and professional growth
bull to reward its human resources on the basis of transparent meritocratic criteria
bull to create safe working environments and processes
bull to guarantee transparency and clarity in contract conditions
bull to encourage dialogue and internal communications
Customers and Consumers
In dealing with its (retail) customers Florim is committed to
bull creating a relationship of trust as a stable basis for business
bull guaranteeing clarity in contracts and prices
bull guaranteeing the reliability of its products and developing customer service
bull offering innovative safe environmentally sustainable products
bull providing a diversified offering with services with high value added
The overall aim is also to satisfy the expectations and demands of the final consumer
Developers Architects and Interior Designers
To meet the needs of developers Florim is committed to
bull offering state-of-the-art solutions in terms of environmentally sustainability technology and design
bull establishing and fostering relationships with partner professionals
bull providing consulting and technical experience from the project concept through to installation
bull supplying turnkey solutions
Local Communities and Local Government
In its relationships with local communities and local institutions Florim is committed to
bull guaranteeing dialogue cooperation and transparency
bull giving value back to the local communities in the areas where it operates
bull continually improving the environmental performances of processes
bull researching developing and using the most sustainable technologies
bull making an economic contribution to local sporting and social projects for children and young people
Suppliers
When selecting its suppliers Florim pays close attention to companiesrsquo CSR practices Florims relationships with its suppliers are based on compliance with the values of its code of ethics otherwise contracts are automatically terminated Florim also guarantees certainty in payment times and compliance with contract terms provided the goods and services contracted are delivered as agreed
ERMES GIUSEPPE FERRARI Managing Director
GIOVANNI GROSSI Managing Director
OSCAR ISEPPI Managing Director
DORVAN SAZZI Managing Director
STEFANO TORRENTI Managing Director
2016 Sustainability Report16
Materiality ApproachIn 2015 the company began an internal analysis process based on the materiality principle in order to identify the sustainability issues of relevance both for the Group (including Florim USA) and for all stakeholders Materiality is the threshold above which a topic becomes sufficiently important to be included in the report In fact organizations are faced with a large number of topics on which they could report Relevant topics and indicators are those considered important for reflecting the organizations economic environmental and social impacts or which influence the decisions of its stakeholder and which therefore potentially merit inclusion in the report In accordance with the GRI ndash G4 Guidelines Florim has analyzed and identified relevant topics which were assessed by the working team which drafted the Sustainability Report on the basis of discussion with the main stakeholders The findings which emerged were supported by a qualitative survey external to the companys context examining an analysis of the press gallery (more than 650 articles) competitors Sustainability Reports the Emas Study of the Fiorano and Sassuolo Ceramics District and the GRI document ndash ldquoSustainability Topics for Sector What do Stakeholders want to knowrdquo
In the chart below the aspects found to be most important appear in the top right-hand corner and constitute a strategic priority for the Group The topics in the bottom left-hand corner such as biodiversity prevention of corruption and absence of discrimination are less relevant because they are easy for both the organization and stakeholders to manage and no problems have ever been reported over the years Similarly the protection of human rights is now taken for granted since Florim complies strictly with all the provisions of the National Employment Contract
Importance for stakeholders
Importance for Florim spa
low
m
ediu
m
high
low medium high
Biodiversity
Indirect economic impacts
Prevention of corruption
Market share
Absence of discrimination
Sustainable transport
management
Protection of Human Rights
Environment and safety
Water saving
Energy efficiencyRaw materials
Diversity and equal opportunities
Transparency of financial and other
information
Ethical supplier
management
Investments in the local community and social welfare
Direct and indirect environmental
impacts
Green products and
services
Economic performance
Quality of products offered to customers
Regulatory compliance
Development of human resources
and training
ENVIRONMENT
COMMUNITY
EMPLOYEESASSOCIATES
ECONOMIC PERFORMANCE
PRODUCT RESPONSIBILITY
HUMAN RIGHTS
2016 Sustainability Report 17
FinFloor consolidated (in thousands of Euro) 2012 2013 2014 2015 2016
Net earnings 315344 325853 329533 374094 406759
EBIDTA 59608 72986 84395 98115 107186
Operating result 35717 50996 58508 66255 71028
Gross cash flow 52710 68312 83274 97268 109148
Net profit 26103 35732 36433 43324 49347
Net financial indebtedness (127730) (96500) (54524) (27326) (12508)
Final inventory 95514 84432 90283 92795 96721
Net shareholders equity 186905 218847 276916 332721 369937
Total investments 32572 48780 41584 34215 53531
2012 2013 2014 2015 2016
Waste produced (t) 30228 21170 22300 30862 34423
Recycled third-party waste (t) 4028 4190 1721 2570 5627
Total water consumption (msup3) finished product (t) 075 075 078 069 071
Recycled water percentage 100 100 100 100 100
Self-generated energy in relation to consumption 67 68 62 65 75
Investments in environmental management (euro000) 13617 2493 1995 465 6400
2012 2013 2014 2015 2016
Number of employees at 3112 1037 992 984 982 987
Total number of training hours 14690 9124 9056 7176 10606
Number of training hours on environment and safety 7572 4514 4200 3008 2489
Number of workplace injuries 63 62 74 56 43
Environmental and social profile figures refer to Florim Italy for Florim USA please see the relevant section (from page 37)
REPORTING
In brief
Economic Profile
Environmental Profile
Social Profile
2016 Sustainability Report18
Economic Responsibility
Comments on 2016 Economic Data
The Groups 2016 results were again good from every point of view
Compared to the previous year turnover increased by 87 leading thanks to careful management of production costs to an EBITDA of Euro 1071 million equivalent to 263 of turnover and a profit after tax of Euro 493 million
The companys financial data also significantly improved with a net financial position of Euro 125 million compared to Euro 273 million at the end of 2015 in spite of record technical investments of Euro 535 million and financial investments of Euro 11 million
Once again underlying the results achieved were large investments in latest-generation machinery and technologies painstaking research to develop materials with exceptionally high technical and design content human resources and projects for the increasingly direct promotion of Florims image and quality standard
Investments
The technical investments made in 2016 amount to Euro 535 million while Euro 11 million was spent on reacquiring 100 ownership of Maker srl followed by its amalgamation with Florim spa on 31 December The most important industrial projects included the continuation of the work on the Mordano plant which involved investments of Euro 26 million for the restructuring of the raw material preparation area and the doubling of production capacity for traditional porcelain stonewareThe investments of US$ 18 million at Florim USA were utilised to complete the renewal of the raw material preparation area and construct a new building for the technical organizationFinally about 9 million Euro was invested at Fiorano on various production line modernization projects
A creative hub for design style and new trends Milan once again confirms that it is the ideal setting for Florims investments and the opening of the all-new ldquoSpazio CEDITrdquo confirms the companys determination to strengthen its bonds with design professionals working in high-end interior design The culture of beauty art architecture and design are all integral to the genetic make-up of CEDIT ndash the historic Italian brand relaunched by Florim in 2016 ndash and dominate the display areas and the first six ceramic covering collections styled by famous names on the contemporary creative sceneOn two levels with a total floor area of more than 200 msup2 the space maintains the same stylistic identity as the one at Fiorano Modenese since they are both constructed to an architectural design intended to be replicated in CEDIT customers showrooms worldwide
Spazio CEDIT Watch theinauguration video
2016 Sustainability Report 19
Economic Value Generated and Distributed
The figures for the economic value generated and distributed provide a simple clear explanation of how Florim has created wealth and redistributed it to its stakeholders The table below contains the data from Florims 2016 financial statements approved by the Board of Directors on 30 March and certified by external auditorsThe economic value directly generated is represented by the total earnings for 2016 while the economic value distributed includes the costs incurred for suppliers and employees payments to the state (taxes) and the donations which had positive repercussions for the community to which Florim spa belongs
Heading 2014 2015 2016
Revenues 253125 269855 302521
Direct economic value generated 253125 269855 302521
Operating costs 135735 150951 168809
Employee wages and benefits 56985 58149 62418
Payments to providers of capital 7413 6399 11903
Payments to government 15738 13162 15382
Community investments 221 212 240
Economic value distributed 216092 228873 258752
Economic value retained 37033 40982 43769
KeyRevenues net sales plus revenues from financial investments and sale of assetsOperating Costs payments to suppliers non-strategic investments royalties payment facilitationsEmployee wages and benefits employee wages and benefits per employees (current payments)Payments to providers of capital all payments to the organizations providers of capitalPayments to government gross taxes and dutiesCommunity investments voluntary donations and investments in the communityEconomic value retained calculated as economic value generated less economic value distributed
The data in the table are in thousands of Euro and refer to the consolidated financial statements of the Italian companies only
KBIS (USA) - detail of the stand created with ldquoI Classici di Rexrdquo
2016 Sustainability Report20
Casa dolce casa ndash Argille 20 Collection
2016 Sustainability Report 21
Environmental ResponsibilityEffective environmental policy management energy saving and emissions reduction are amongst Florims strategic sustainability objectives
Our green projects in figures
2 highly-regarded process certifications
ISO 14001 (ENVIRONMENT)and ISO 50001 (ENERGY)
849873 MWh is the amount of electricity the
company succeeded in producing in-house during 2016
2 departments (marketing and communications)
engaged on digitizing advertising tools
8462 tons of CO2 NOT emitted
CO2
100 is the percentage of wastewater recycled
16000 msup2of photovoltaic panels covering
an area of 30000 msup2
75 is the percentage of the electricity consumed which is
produced in-house
4 latest-generation industrial kilns installed in
the last 3 years
4 different types of environmental product
certification
2 cogeneration plants to increase energy saving
and efficiency
1 laboratory for the development of contemporary design projects with a specific focus on the materials green
content
100is the percentage recycling of
industrial greenware waste in the production process
2016 Sustainability Report22
Certifications
System and process certifications
UNI EN ISO 14001TUumlV has awarded Florim the highly-regarded UNI EN ISO 14001 voluntary certification which confirms its compliance with a series of internally certified procedures intended to improve the internal environmental management system The decision to seek this certification springs from the desire to reconcile quality with efficiency and productivity while protecting the environment and community in which the company operates
UNI EN ISO 50001Thanks to a careful energy management policy and aided by the latest investments in the production area also intended to improve energy efficiency Florim was the worlds first ceramics manufacturer to obtain ISO 50001 certification of its Energy Management System
In addition to its environmental certifications Florim has also been awarded prestigious AEO (Authorized Economic Operator) status
Further to a lengthy and demanding audit process by the Customs Authorities in 2016 Florim was awarded AEO certification the first company in the Province of Modena to receive this major form of approval Authorised Economic Operator status guarantees the companys absolute compliance with customs and security requirements in its foreign trade
Environmental Management
Waste 2012 2013 2014 2015 2016
Total waste produced (t) 30228 21170 22300 30862 34423
Non-dangerous recyclable waste (such as paper and cardboard fired scraps plastic glass and wood) ()
989 982 985 991 989
Non-dangerous disposed-of waste (such as the waste picked up by the motor sweepers) ()
02 04 02 02 02
Dangerous recyclable waste (such as spent oil batteries and monitors) ()
00 01 01 01 00
Dangerous disposed-of waste (such as spent lime) () 01 13 12 07 09
Third-party waste recycled within the production process (t) () 4028 4190 1721 2570 5627
Besides recycling greenware waste from its own production cycle (not included in the table because the amount cannot be calculated) Florim also recycles third party waste
Florims operations have always been oriented towards optimization of impact on the local community and environment Thanks to the work of its research laboratories the support of all staff and the recent investment plans tangible results have been achieved The data provided below reveal that in spite of an increase in production of 8 compared to the previous year consumption remains low The companys commitment to environmental protection is all-inclusive and also comprises a focus on the district within which it operates One example is the total removal of all asbestos cement from the Fiorano Modenese plant and the creation of the new recycling station opened in 2015 and donated to the Local Authority as a public serviceAs in previous years during 2016 Florim was not fined for any breaches of environmental regulations or laws
Florim recycles and optimises within the production process all greenware scraps dust residues from filters and sludge from the process and rectification wastewater treatment system The waste produced is detailed in the table the significant differences between years are due mainly to the major demolition and subsequent reconstruction works undertaken at the Italian plants
Waste Management
2016 Sustainability Report 23
Water Resources
No environmental impact of wastewater discharges is specified since all the water from the production cycle is completely reused (100) All other effluents comply with legal requirements
The figure states the total cubic meters of water used per ton of finished product The water used in the Fiorano production process is drawn from private company-owned wells with water from the public main only used for non-industrial purposes The Mordano plant is supplied by an industrial water main Water use is measured by means of meter readings Four highly innovative dry rectifying plants have gone into production at Mordano since 2015 enabling the company to eliminate the physicalchemical treatment of the water used in the rectification process
WATER USE
2012
08
2013
08
2014
08
2015
07Total water consumption (msup3) finished product (t)
07
2016
All packaging used for Florim materials is made from recycled paper and parts of the coverings used to protect pallets of finished products consist of recycled plastic Whats more all the packaging used (boxes cardboard shrink wraps pallets etc) can be completely recycled by the end user The latest investments made include new eco-friendly packaging machines increasing the number of these machines installed to 15 These plants completely eliminate waste due to leftover inventory saving significant amounts of cardboard
Packaging and Coverings
As the materiality assessment states Florim has no significant impacts on the biodiversity of its local area since the company is located inside the Fiorano Modenese ceramics manufacturing district at least 5 Km from the nearest nature reserve at Salse di Nirano Florim takes special care over the choice of the raw materials used for its tile body mixes of which it is required to provide documentation guaranteeing compliance with the European Directives protecting wild birds (EU Dir 79409EEC) and habitats (EU Dir 9243EEC) and the United Nations Convention on the protection of biodiversity It has also introduced a software program - used at the 3 production plants (Italy and the USA) - for the management of data on the origin of raw materials such as quarry location distance from the factory recycled content declaration technical safety and radioactive content data sheets and the expiry of the quarrying permit issued by the government
Raw Materials and Biodiversity
2016 Sustainability Report24
Energy Management
There is no disputing that large amounts of energy are required to power the production processes of ceramic tile plants with consequent direct and indirect impacts on the local area and the environmentThe main indicator used to measure plants energy performance is the mean specific total energy consumption (TEJ) measured in GJt of product transferred to stock As the table below shows this figure is obtained by adding together heat consumption (NGJ) and electricity used (EEJ)
Parameter ndash Definition Unit of measurement
2012 2013 2014 2015 2016
NGJ Mean specific natural gas consumption in relation to the unit of weight of finished product transferred to stock
GJt 557 571 576 578 598
EEJ Mean specific electricity consumption in relation to the unit of weight of product transferred to stock
GJt 111 108 111 108 107
TEJ Mean total specific energy consumption in relation to the unit of weight of product transferred to stock
GJt 668 679 686 685 705
Self-generated electricity as a proportion of consumption
67 68 62 65 75
With two cogeneration plants (for the combined in-house production of heat and electricity) and 16000 msup2 of photovoltaic panels the company certainly sets a new benchmark for the entire ceramic tile industry 2016 saw the replacement of the Fiorano turbine set (the main component of the cogeneration plant) while the one in Mordano was kept in operation 247 factors which led to a 10 increase in in-house electricity production in relation to consumption To provide a clearer idea of the scale of the achievement the amount of electricity the company generated in-house in 2016 (849873 MWh) would cover the average annual consumption of about 37000 households (With consumption per household of 229 MWh - data from the latest ISTAT survey in 2012ndash calculated on the Italian average)
Photovoltaic Plant
kWp kWh produced kg of CO2 not emitted
270021 15937250 8462680
Good Practice
The head office organizations are also optimizing paper and energy consumption In addition to issuing and distributing the energy saving handbook for its offices the company is also trying to maximize savings on the raw material used and specifically the use of paper Internally the company only purchases reams of paper which carry environmental certification and the paper used in offices is collected separately for proper disposal Externally the company distributes a system of merchandising products made mainly from recycled paper and encourages the gradual digitization of its marketing tools as well as publishing all its catalogues in digital format on its Internet sites Florim offers its distributor companies an innovative digital touch screen tool with the pdf versions of the catalogues and other tools for the final consumerIn 2016 Florim decided to adopt a new payslip distribution procedure introducing an online processing system As well as providing employees with new functions and greater operating flexibility thanks to this system the company no longer prints out the monthly payslips saving paper ink and energy The scheme initially involving all office workers has the ambitious target of also including the staff of the Fiorano and Mordano plants
The 16000 square meter photovoltaic plant received recognition from GSE (Energy Management Services) as one of the most innovative installations of its type and from its commissioning (October 2011) up to December 2016 it produced the following results
2016 Sustainability Report 25
Atmospheric Emissions
The industrial facility emits greenhouse gases basically CO2 from the following main sourcesbull combustion from the burning of fossil fuels (such as natural gas)bull processes from the minerals in the raw materials any organic matter in the clays used and any organic additives in tile body mixes
In order to comply with Directive 200387EC (ETS - Emission Trading Scheme) Florim has been reporting and certifying its CO2 emissions since 2013
CO2 emissions 2013 2014 2015 2016
CO2 emissions (t) 102728 103462 111862 132960
CO2 emissions (t) Finished product (t) 033 033 033 035
Emissions from the production cycle 2013 2014 2015 2016
Particulate material (gmsup2 finished product) 223 130 098 118
Lead (gmsup2 finished product) 000 000 000 000
Fluorine (gmsup2 finished product) 014 018 013 012
The increase in CO2 is due mainly to the large increase in the square meters produced (+ 8) and the 247 use of the cogeneration plant However it should be noted that the cogeneration plant provided a 10 increase in in-house electricity generation with lower CO2 emissions than electricity purchased from the grid produced mainly using fossil fuels (source ISPRA Fattori di emissione atmosferica di CO2 e sviluppo delle fonti rinnovabili nel settore elettrico Rapporti [Atmospheric CO2 Emission Factors and Development of Renewables in the Electricity Sector Reports] 2122015)The ratio between CO2 emissions and tons of finished product produced increased because in 2016 the sale of spray-dried material to other companies rose compared to the previous year (emissions from this phase are included in the emissions count but there is no corresponding output of finished product)
In a change from previous years the new GRI-G4 guidelines also require reporting of nitrogen oxide and sulphur oxide emissions Nitrogen oxide (NOx) emissions are within the limits permitted under the integrated environmental authorisation Sulphur oxide (SOx) emissions are not reported here since this figure is not required by the IEA
Transport
The materiality study reveals that transport is a significant factor for both stakeholders and Florim itself The company is not able to measure the impact of transportation of finished product on the local area since all shipments are ex-works However Florim which has been introducing electric vehicles to replace its oldest most obsolete unleaded petrol forklifts for years now has further optimized the handling of materials thanks to the new highly-automated logistics hub created at the via Canaletto location In 2016 about 53 of the vehicles used on the companys premises were electric with no direct greenhouse gas emissions
2016 Sustainability Report26
CEDIT ndash Creative Composition
2016 Sustainability Report 27
Workforce Composition
In 2016 the workforce included 27 people with disabilities 6 women and 21 menBearing in mind the job descriptions arising from the specific industrial sector the breakdown between men and women is in line with the industry average Male office workers and executives earn an average of 10 more than women for jobs of equal responsibility Among blue-collar workers the difference is 7 The company had a total of 29 foreign employees 24 at Fiorano and 5 at Mordano
Manager Executive Office worker
2013 2014 2015 2016 2013 2014 2015 2016 2013 2014 2015 2016
Women 2 3 3 3 3 1 1 1 137 142 133 149
Men 18 21 20 18 21 24 25 28 127 132 128 132
Total 20 24 23 21 24 25 26 29 264 274 261 281
Office ancillary Blue-collar worker Total
2013 2014 2015 2016 2013 2014 2015 2016 2013 2014 2015 2016
Women 18 16 25 19 226 219 212 196 385 381 375 368
Men 64 68 79 64 376 358 356 377 607 603 607 619
Total 82 84 104 83 602 577 568 573 992 984 982 987
Social Responsibility
Employees amp Corporate welfare
Its employees are the heart and soul of Florim they provide its character and its DNA Since 2009 when the current major economic crisis began Florim has undertaken a number of income support programs for its workforce Below we summarise some of the ongoing programmes and others run in 2016bull Ending of the Income Support Program for the Mordano plantbull Agreement with Sassuolo Hospital under which Florim employees and their family members enjoy discounts and shorter waiting times for specialist examinations and outpatient diagnostic tests performed on a private basisbull Special agreements with local health facilitiesbull Tax advice at special rates bull Special terms for banking services with financial consultants on-sitebull Discounts on the purchase of Florim products for employees homesbull Free entry to the Peggy Guggenheim Collection in Venice for employees and concessions for family membersbull Free provision of water and mineral salts in the plants during the summerbull Distribution of fuel vouchers to employees for the Christmas holidays
Summer Play Schemes and Cregraveches
In 2016 the summer play schemes for the children of employees at Fiorano and Mordano were continued for the fifth year in succession Seven different centers across the area between Modena and Bologna hosted 85 children (twice the number of the previous year) the company paid the fee for two weeks attendanceWhats more since 2013 the company has negotiated special terms with local cregraveches which now offer a number of places for employeesrsquo children at a reduced fee
2016 Sustainability Report28
Human Resources Management Policies
In July 2015 on renewal of the in-house supplement to the national employment contract the Management introduced a new phase in its relations with the Trade Unions with the aim of continuing and improving the good relationships enjoyed for decadesThe new company contract applied for all employees at the Fiorano headquarters includes more facilitations for part-time working the willingness to allow flexitime where feasible and the commitment to invest in staff training in order to generate full benefits from intellectual capital The company and the trades unions agreed on a plan to improve efficiency fundamental for maintaining the current level of competitiveness by establishing improvement in Production Efficiency and EBITDA as criteria for the payment of the new Performance Bonus The individual Attendance Score is considered together with these parameters The 2016 Performance Bonus in its first year of application was 20 higher than that paid in 2015 In addition in response to employees requests the Company increased the number of approved canteens extending the choice available and also introduced weekly laundering of work clothing for all production workersWith regard to applications for severance pay advances the Company confirms its commitment to continuing the policy implemented so far
Training
Florim believes that in-house training plays a key role in the companyrsquos development and provides a tool for stimulating and fulfilling the potential of its human resourcesMore than 10600 training hours were provided in 2016 to 847 people with an average of more than 11 hours of training per employee New projects included a 6-month on-line English language course which attracted a large number of participants and two highly structured training courses for the sales division and the communication department A retraining program for workers at the Mordano plant was also completed it comprised 4 technical courses attended by 31 people for an average of 13 hours per person Another new entry for 2016 was an innovative procedure for acquiring information about training needs using an on-line questionnaire available to all employees as well as line managers specific recommendations The Master in Florim project is discussed in depth in the specific section
Health and Safety
Florim was the first Italian ceramics manufacturer to receive BS OHSAS 18001 (Occupational Health amp Safety Assessment Series) certification from TUumlV this international standard certifies the implementation of an internal management system oriented towards occupational health and safetyThis major award confirms the companys constant commitment to the well-being of its employees Every year in addition to engineering inspections and machinery maintenance a number of hours of safety training are organised to raise awareness among workers and supervisors Specifically in 2016 2849 hours were dedicated to safety training and a significant reduction in injury rates was recordedMoreover BLSD refresher courses are continuously held for the team of Florim employees trained in first-aid operations and the use of the defibrillators available on site
2012 2013 2014 2015 2016
Number of workplace injuries 63 62 74 56 43
2016 Sustainability Report 29
The Master in Florim organized for the fourth time in 2016 is a vocational training project which aims to bridge the gap between education (high school or university) and the world of work The program which is one of the companys Social Responsibility projects sets out to help young people to get to know the company through a well structured work experience plan It offers a distinctively northern European approach with a method which alternates classroom teaching with internships in the various areas of the company Participants new university or high school graduates specialising in various subjects all below 30 years of age are therefore able to gain hands-on experience of all Florim departments from RampD to the production process and product distribution for an all-inclusive vision The MASTER courses ambitious aim is to match the individual participants talents with the companys real needs At the end of each edition the company hires all or some of the selected candidates enabling it to acquire new skills new experiences and new energy
Master 40 in figures
20 young people taking part6 months of training13 external lecturers264 hours of classroom teaching392 hours of practical training4 company visits (Ferrari Tetrapak Cremonini and Ducati)50 days of work experience on rotation involving 15 departments1 month of project work
The projects prestige is enhanced by its economic context since Florim pays the young participants for the entire period and its aim is to deal with the thorny problem of youth unemployment The Master has won approval from various faculties at major Italian universities The project was also a winner in the Emilia-Romagna Regions 2016 awards for Corporate Social Responsibility projects run in the local community A prize in the ldquoBusiness and Educationrdquo category was assigned to the Master project which aims to give young people the skills required for sustainable development
Master in Florim
2016 Sustainability Report
Watch the videoof the 4th edition
2016 Sustainability Report30
Local Community amp Culture
This chapter describes a number of programs Florim runs for the local community in the area where it originated and where it has been working for more than 50 years
Politecnico di Milano
Since the 20052006 academic year Florim has been a partner sponsor of a large number of Postgraduate Courses run by POLIDesign the Politecnico di Milano consortium which organizes its Master Degree coursesAlso in association with POLIDesign since 2012 Florims Milan showroom has hosted several design events for architects and designers of every nationality
Aziende modenesi per la RSI
ldquoAziende Modenesi per la RSIrdquo an independent open inclusive association of companies in the Modena area which believe in the principles and values of Corporate Social Responsibility was established by public deed on 30 September 2014 with Florim as a founding member Florim hosts the associations member companies every year to discuss the various topics proposed
Premio Lucchese
The Premio Lucchese presented for the twenty-ninth time in 2016 was established in memory of Giovanni Lucchese and consists of scholarships awarded to students at the ldquoAlessandro Voltardquo Technical High School in Sassuolo who graduate with full marks The award ceremony held every year at the Florim Gallery in association with Societagrave Ceramica Italiana of Bologna includes a talk given by a leading personality on a topic of current interest to an audience of eager young listeners
Intrapresaelig Collezione Guggenheim
As befits a company that combines the values of its local community and historic and artistic heritage with a flair for research and innovation Florim recently launched a partnership with the Peggy Guggenheim Collection Since its foundation Florim has always had a unique ability to incorporate the true cultural significance of its industry in its business model and by this project once again confirms its commitment to promoting art by supporting a collection of extraordinary beauty
Fondazione Ing Giovanni Lucchese
More than thirty years after the untimely death of Giovanni Lucchese ndash founder of what was then Floor Gres currently Florim ndash in 2013 his family established a Foundation in his name which since then has funded organizations and associations that support families in need in the ceramics district The Foundation also supports a variety of projects such as the summer play scheme for employees children the Premio Lucchese and the Florim HealthampTraining Center described in more detail below
The main projects undertaken in 2016 include the funding of the purchase of 10 defibrillators for the Municipality of Fiorano and the contributions made to the purchase of paediatric ambulances for the local area and to support the Parish charitable organizations and social services in the district
Watch the Premio Lucchese video
The project run jointly by Florim and Sassuolo Hospital adopts a completely new model combining industrial culture and healthcare in an original way to benefit the local people and community thanks to the coming-together of a ceramic coverings manufacturer and the public-private joint venture Ospedale di Sassuolo Spa Florim HealthampTraining is the synthesis of this idea an experimental center which promotes local training for healthcare and other staff health education and information advanced medical simulation and research
The Center
On the main Florim site and opened on 16 April 2014 the Center is 550 square meters in area and contains a modular lecture theatre able to seat over 100 people and a number of classrooms for seminars and lessons At its heart is a state-of-the-art control room crammed with technology that operates dummies capable of reproducing human functions of all kinds Advanced simulation is a major aid to maintaining the skills of emergency healthcare workers with a particular focus on pediatric and neonatal resuscitation
Health meetings
Designed as a space for community use the Center also aims to become a place where all sections of the population - workers schoolchildren parents teachers volunteers and even just members of the public - can learn about preventive health care and acquire first aid skills After the distribution to Florim employees of a questionnaire surveying their training needs and preferences a Center Scientific Committee of Sassuolo Hospital medical personnel was appointed and drew up a plan of bi-monthly ldquoHealth meetingsrdquo All meetings are led by doctors with expertise in the various topics who answer the many questions from the audience at the end of their talks Between its opening and the end of December 2016 the Center hosted 13 meetings on a variety of topics attended by about 1000 people including employees their family members and the community at large
Healthcare discounts for Florim employees
The project also includes a major welfare program for all Florim employees and their family members entitling them to discounts and shorter waiting times for specialist examinations and outpatient diagnostic tests performed on a private basis
American Heart Association
The world-famous American Heart Association (AHA) is the oldest and most respected American voluntary organization dedicated to the fight against cardiovascular diseases and strokes In 2015 the AHA via the Simaid International Training Center named the Florim HealthampTraining Center as an Authorized Training Site for basic and advanced cardiopulmonary resuscitation
Florim HealthampTraining Center
2016 Sustainability Report
Watch the Health amp Training Center video
2016 Sustainability Report32
Product Responsibility
Here we summarize the concept of Made in Florim denoting a product that encapsulates the companys core values passion innovation a constant commitment to improvement and corporate social responsibility
Florim product certifications
CE Marking guarantees the user that the materials purchased meet the requirements of the relevant regulations and that the characteristics concerned are virtually unchanged for all production lots It is a declaration of conformity which protects the consumerrsquos safety The presence of the CE Marking on packaging guarantees that Florim products comply with the relevant regulatory requirements
Ecolabel (EC Regulation 662010) is a certification granted to products which comply with ecological and performance criteria set at a European level concerning raw material extraction supplier selection manufacturing processes packaging distribution use and disposal The certified Florim collections are Architech Ecotech Reverse Walks 10 by Floor Gres and Pietra del Nord under the Rex brand
Several ceramic tile collections bearing the Florim brands have earned certification from Bureau Veritas for their pre-consumer recycled material content These articles are therefore fully eco-compatible and can meet the environmental sustainability requirements imposed by many international certifications
Florim is a member of the US Green Building Council (USGBC) the most important association which promotes the reduction of buildings negative impact on the environment To allow the effective monitoring a projects level of sustainability the USGBC has developed a certification procedure for the development of sustainable buildings which assess and certifies the sustainability of a building in its entirety Florim materials are able to help to gain LEED points in a number of areas (data available on the Florim brand websites)
Florim has achieved the prestigious Greenguard certification for all its products Issued by the American body UL Environment this certification aims to reduce indoor pollution caused by interior design systems and materials UL Environment thus aims to protect health by improving air quality and reducing peoples exposure to chemicals and other pollutants Florim has also achieved Greenguard Gold Certification which imposes even stricter limits to confirm that a given product is suitable for use even in locations such as schools and health care facilities
The EPD or Environmental Product Declaration is a document which defines the environmental impacts arising from production In 2016 Florim participated in the study - certified by the German organization IBU - performed on the ceramics industry average data which aims to raise international awareness of the excellence of the environmental standards achieved
Beyond the standardsMade in Florim products are a guarantee of safety highly innovative content and eco-friendliness The people who produce them work in a safe place and in ethically sustainable conditions Due to their nature all Florim products are guaranteed free from pollutant emissions do not accumulate electrostatic charges are frostproof and completely inert and are undamaged by contact with flames The Groups Internet sites and collection catalogues contain the technical data sheets which detail the product information (slip-resistance breaking strain abrasion resistance etc) for every collection as well as its recycled material content with the relative certificates
During the period under consideration no banned products were placed on the market and the company was not found guilty of any breaches of the law with regard to data protection or its marketing and communication activities
EU Ecolabel nr IT2104
2016 Sustainability Report 33
Quality SystemThe current ISO 9001 standards define quality as the ability to satisfy explicit or implicit needs via a product or a service A Quality System implies constant improvement of company processes in order to realise products that always satisfy the customerrsquos needs Further to the 2016 audit Florim obtained the renewal of its UNI EN ISO 90012015 certification for the design manufacture and sale of all categories of ceramic tile
Objective Indicator 2012 2013 2014 2015 2016
Continual improvement of control of the production process
Percentage of First Grade Product ()
924 943 942 952 956
Quality rate () 883 905 903 905 909
Scrap rate () 44 41 42 42 49
Productivity (sq mhour) 186 188 186 190 200
Improvements in sales performance and customer satisfaction
Innovation rate () 330 296 367 455 364
Coverage () 795 714 814 813 816
Total portfolio shippable within one month ()
911 837 888 893 897
Optimization of range and stocks
Obsolete stock () 172 126 165 120 69
Stock turnover rate () 13 15 16 15 16
Gradual elimination of disputes complaints and claims concerning service
Square meters affected by complaints ()
17 12 08 12 09
Complaints by number of order items ()
10 11 11 10 10
Gradual improvement in staff skill levels
Employee turnover () 15 23 04 04 12
KeyPercentage of first grade product percentage ratio between the square meters of first grade products and the total square meters transferred to stockQuality rate percentage ratio between the square meters of first grade product transferred to stock and the square meters leaving the pressesScrap rate percentage difference between square meters of material leaving the presses and square meters of product actually transferred to stockProductivity ratio between the square meters transferred to stock and the total hours worked in the plantInnovation rate ratio between square meters sold belonging to series designed in the last three years and total square meters sold Florim uses this indicator to assess the effectiveness of its design process in terms of salesCoverage percentage ratio between square meters available for immediate shipment and the square meters on orderTotal portfolio of orders shippable within one month percentage ratio between the square meters which can be shipped in 30 days and the square meters on orderObsolete stock percentage ratio between the square meters of substandard discontinued produce and the total square meters in stock Stock turnover rate ratio between the square meters sold and the square meters in stockSquare meters affected by complaints percentage ratio between the square meters affected by complaints and the square meters soldComplaints by number of order items percentage ratio between the number of complaints and the number of items orderedEmployee turnover percentage ratio between the number of employees leaving the company and being replaced and the workforce at the start of the year
2016 Sustainability Report34
Casamood - Neutra 60 Collection
2016 Sustainability Report 35
OUR COMMITMENTS
The promises we keptIn our last Sustainability Report we committed to achieving a large number of objectives the following are the outcomes we attained
Relaunch of the ldquoCEDIT ndash Ceramiche drsquoItaliardquo brand OBJECTIVE ACHIEVED
Launch of the FLORIM stone brand OBJECTIVE ACHIEVED
Installation of a new latest-generation kiln at the Mordano plant OBJECTIVE ACHIEVED
Transfer of the Moscow showroom to new premises SCHEDULED FOR 2017
Creation of a new gatehouse at the Mordano plantOBJECTIVE POSTPONED TO GIVE PRIORITY TO THE CONSTRUCTION OF THE NEW FACTORY
Introduction of ERP system at Florim USA OBJECTIVE ACHIEVED
Installation of a new spray dryer and raw material handling system at Florim USA
OBJECTIVE ACHIEVED
Economic Responsibility
Renewal of certification of the Florim environmental and energy management system
OBJECTIVE ACHIEVED
Award of new certifications for collections manufactured with a high recycled material content
OBJECTIVE ACHIEVED
Continuation of work to reduce environmental impacts at Mordano especially with the reduction of energy costs
OBJECTIVE ACHIEVED
Continuation of the work to remove asbestos cement roofing materials at the Mordano plant
OBJECTIVE ACHIEVED
Expansion of the system which conveys rainwater to the treatment plant OBJECTIVE ACHIEVED
Reduction of the noise emissions of the air filtering systems OBJECTIVE ACHIEVED
Increase of recycling targets through constant awareness-raising amongst all staff and optimisation of recycling facilities
OBJECTIVE ACHIEVED
Continuation of replacement of the diesel forklift trucks for use on outdoor yards with electric vehicles
OBJECTIVE ACHIEVED
Environmental Responsibility
Running of fourth edition of Master Florim course with new procedures OBJECTIVE ACHIEVED
Creation of an internal refreshment area for the Fiorano office staff OBJECTIVE ACHIEVED
Improvement of corporate welfare through the activation of new free services and discounts tailored to employees needs
OBJECTIVE ACHIEVED
Continuation of the health meetings for the local community in association with Ospedale di Sassuolo Spa
OBJECTIVE ACHIEVED
Organization of new community events at Florim Gallery OBJECTIVE ACHIEVED
Organization of Florim Family Day 2016 A PARTY WAS ORGANISED FOR EMPLOYEES
Social Responsibility
2016 Sustainability Report36
The targets we set for ourselvesWe aim to achieve the following objectives in 2017
Economic Responsibility
Construction of a new factory at Mordano to produce large slabs
Launch of the project to unite the Florim spa sales organizations
Total restyling of the corporate and brand Internet sites
Launch of the HUB project - Intranet CRM Marketing Automation
New plants at Florim USA a press two sorting lines a polishing and rectifying line
New working spaces and cloakrooms for technical staff at the American plant
Environmental Responsibility
Purchase of a new cogenerator for the Mordano plant
Introduction of a new rainwater collection system at Fiorano
Land reclamation project involving covering of the Rio Spezzano stream at Fiorano
Implementation of new software for continual monitoring of energy impacts at Fiorano
Modernisation of the compressor room to improve energy impacts at Mordano
Increase of recycling targets through constant awareness-raising amongst all staff and optimisation of recycling facilities
Continuation of replacement of the diesel forklift trucks for use on outdoor yards with electric vehicles
Social Responsibility
Improvement of corporate welfare through the activation of new free services and discounts tailored to employees needs
Continuation of the health meetings for the local community in association with Ospedale di Sassuolo Spa
Organization of new community events at Florim Gallery
Organization of a new event for Florim spa employees
New offices for hospitality and events staff at Fiorano
2016 Sustainability Report 37
FLORIM USA
Profile and Economic ResponsibilityFlorim USA with registered office at Clarksville - Tennessee - and its subsidiary Florim Solution Inc have been part of the Florim Group since 2000 The Florim USA manufacturing plant one of the largest most technologically advanced in the United States produces porcelain stoneware tiles for the residential market and undertakes commercial projects in North America During the last few years Florim USA has implemented a growth and process optimization strategy which has generated significant technological progress with more innovations planned for the future The strategy adopted will put Florim USA at the worldwide state of the art in porcelain stoneware tile manufacture
In 2016 of the 18 million USD invested 147 was allocated for installation of a latest-generation raw material handling system and a large spray-dryer with an innovative sorting system Improvements were made to other parts of the process to increase their efficiency leading to a further reduction in emissions and scrap rates Additional investments are planned during 2017 to continue this dual trend of rising production with mitigation of environmental impact
The new Florim Flagship Store in New York (152 Madison Avenue 32nd Street)
2016 Sustainability Report38
Environmental ResponsibilityFlorim USA implements the same environmental policy as Florim and is committed to achieving the following objectives
bull reduction of the energy used in the production processbull improvement of the waste management process with a focus on recovery and reusebull introduction of new more eco-efficient technologiesbull adoption of integrated management systems
Florim USA has been pursuing a strategy of careful management of its operations and environmental impact for a number of years Here we summarise the main actions taken and the results achieved in 2016
bull installation of a latest-generation spray-dryer in 2016bull installation of an innovative raw material handling system in 2016bull 100 recycling of wastewater within the processbull optimisation of the management of water bottles with elimination of about 34200 of them per annumbull reuse of almost all production scrap (+99)bull 157000 kg of cardboard recycled in 2016bull award of two different types of product certificationbull 9300 kg of plastic recycledbull recycling of 17 complete trucks of pallets
Environmental Projects and Awards
Florim USA has received Clarksville Montgomery County Green Certification (CMCGC) CMCGC is a program designed to help companies learn and implement best practices in the area of environmental stewardship to sustain the local communityrsquos resources through a series of free workshops taught by local environmental specialists Since 2014 Florim has allocated some of its Environment Managers time for the running of these workshopsFlorim USA earned this green company certification thanks to a large number of projects first and foremost the one which eliminated the use of disposable water bottles replaced with individual reusable bottles provided by the company and a series of fill-up stations About 34200 bottles are removed from the waste cycle every year
During the latest phase of its plant optimization Florim USA has implemented a thorough construction material reuse policy In the various stages of demolition of the old plants including the old storage silos the concrete debris was recovered and reused in other construction worksThis project alone generated 11500 tons of recycled aggregate as well as several hundred tonnes of metal sold to a recycling firm
Environmental management system and eco-compatible products
Florim USArsquos products help builders and designers to meet the requirements for sustainable buildings as defined by the United States Green Building Council (USGBC) through the LEED Green Building Rating System This protocol evaluates and certifies the environmental sustainability of a building as a unit from its design to its day to day management To gain LEED credits many of the Florim USA product lines contain a significant percentage of recycled material (40 or more)This feature contributes to an increase in the LEED score in the projects where these products are installed In 2014 Florim USA together with a large number of other US tile manufacturers and the Tile Council of North America drew up a type III environmental product declaration (EPD) certified under the ISO 14025 standard This ceramic tile life-cycle analysis enables Florim USA products to gain LEED points under the new LEED v4 protocol
2016 Sustainability Report 39
Water use (gallonsper million square feetof finished tiles)
208137 216246 204962 195280 194268
Energy use
2012 2013 2014 2015 2016
Cubic feet of natural gas per million square feet of finished tiles 9343383 9149721 8331170 8390503 8380000
kWh per million square feet of finished tiles 510972 491171 450594 465976 490300
Emissions
Particulate material lt 21024 tonnes per annum
SO2 (sulphur dioxide) lt 1674 tonnes per annum
VOC (volatile organic compounds) lt 1245 tonnes per annum
NOx (oxides of nitrogen) lt 1501 tonnes per annum
Environmental performance indicators ndash summary
The following are the main environmental indicators related to the impact and performance of Florim USA during 2016
Pre-consumer recycled material
Its internal material recycling processes enable the company to minimise its environmental impact since most of the material which would otherwise be sent to landfills or other waste treatment centers is reusedbull Wastewater is entirely recycled within the production process without any discharge into the municipal drainsbull The material in the collection bags from the tile body and glaze preparation areas the press and glaze application is entirely recycled within the processbull All scrap fired tiles are entirely recycled within the processbull 157000 kg of cardboard was sold to an external recycled material dealerbull 17 trucks of unusable wooden pallets were sold to a pallet regeneration companybull About 9300 kg of waste shrink-wrap plastic film was recovered and recycled
Post-consumer recycled material
About 82000 kg of glass was removed from the flow of waste destined for the local landfill and recycled within the process Florim USA has signed an agreement with the local landfill for consignment of all the glass it handles which is collected and set aside for recycling
Water use disposal and reuse
The water used during the production process is recycled continually therefore no water is discharged into the municipal drains
The 2016 emissions figures are in line with those for previous years well below the standards laid down
Water use 2012 2013 2014 2015 2016
Water use (gallons per million square feet of finished tiles) 216246 204962 195280 194268 203928
2016 Sustainability Report40
Social Responsibility
Employees
The Florim USA workforce comprises 348 staff employed at the production site the Clarksville and Nashville outlet stores and the Florim Solution offices Of the 348 employees 273 are blue-collar workers and 75 office staff 5 employees are Italians on secondment to the United States Florim USA offers a number of benefits to full time employeesbull health and dental care insurancebull Vision insurancebull life insurance for employees and optionally for family membersbull temporary and permanent disability supportbull employee pension plan
2012 2013 2014 2015 2016
Workplace injuries 50 41 22 29 27
The Employee Assistance Program (EAP) also offers support to employees and their families in the event of psychological difficulty or other problems that can have a negative impact on their quality of life Florim USA supports all the costs of the program
Equal opportunities
Florim USA provides equal opportunities in all employment practices to all qualified employees and applicants regardless of race colour religion gender national origin age disability or membership of the armed forces or any other category protected by federal state or local laws
Health and safety
FLORIM USA is committed to ensuring a safe healthy workplace for all employees It therefore replaces old and obsolete equipment with new technologically more modern machinery and updates safety plans as new information gradually becomes availableAs well as an internal supervisor Florim USA has also appointed a health and safety committee which constantly monitors the plans effectiveness and makes any changes requiredThere are currently 20 plant employees who hold CPRfirst aid qualifications They occupy a variety of positions and work different shifts within the plant and have volunteered to attend training courses sponsored by the company for the award of these qualifications
Training
In 2016 every Florim USA employee attended an average of about 25 hours of training The training provided covered the operating procedures for the new equipment the main safety plans and the procedures for use of existing equipment for new employeesAll new staff undergo specific training for their department focusing on the safety-related aspects of the department concerned as well as more generalized safety training
Some of these themes includebull safe correct use of forklift trucksbull training on work in confined spacesbull shutdownwarning procedures and safe electrical practicesbull safe lifting procedures
2016 Sustainability Report 41
Florim USA ndash (Clarksville Tennessee)
For employees wishing to continue their education Florim USA offers assistance through the Educational Assistance Program It provides aid with the cost of education and textbooks and is available for any employee wishing to study for a technical qualification a diploma or a degreeThe plant staff training and education plan also includes various training schemes at Florim Italy where employees are instructed in the use of new equipment before it is installed at the American plantThroughout 2016 Florim USA will continue to provide a free e-learning course on its website for architects engineers and contractors (AEC) to improve their knowledge of sustainable porcelain stoneware tiles
Employee welfare activities
Florim USA employee picnic - In 2016 the company once again held its annual picnic for employees offering them a wide variety of foods games activities and live shows in an event which provided an unforgettable days enjoyment Within the event participants received prizes in the form of vouchers and gifts
Employee anniversary dinner - 2016 again saw the usual dinner to honour Florim USA employees with 5 10 15 20 or more years of service A special evening event was held in the presence of the Chairman and the other managers to celebrate the loyalty and hard work these employees have contributed during their careers with the firm
2016 Sustainability Report42
Local Community
During 2016 Florim USA continued to provide its support to a number of projects in its local areaSome of the main projects include
Scholarships - As part of its work to support the local community Florim has an established scheme which awards scholarships to deserving students at the Austin Peay State University in memory of Florim Group founder Giovanni Lucchese In December 2016 a delegation of Florim representatives attended a scholarship presentation lunch at the Austin Peay State University hosted by the President of the University
Montgomery County Green Certification Program - Florim USA staff actively participate in the Montgomery County Green Certification Program which aims to help companies learn and implement best practices with regard to safeguarding the environment and environmental resources
Donations - In 2016 the company again made a large number of donationsbull book collection for the Austin Peay State University Employees made a generous donation of used books in good condition for children and young people of the APSU in the hope of further promoting the education of future generationsbull to Community Cares the national organization that promotes the acceptance and social inclusion of individuals with Downs Syndromebull to the Aspire Clarksville Foundation a 501(c)(3) charitable foundation whose mission is to continuously improve the economy and the livability (quality of life) of the community by attracting significant capital investment and expansion by businesses and corporations thereby creating better opportunities and higher paying jobs for residentsbull to the Alzheimerrsquos Association a non-profit voluntary organization dedicated to the care and support of Alzheimers Disease sufferers and research into the condition Its aim is to eliminate the disease through the advancement of research to provide and enhance care and support for all affected and to reduce the risk of dementia through the promotion of brain health
Other activities - Every year Florim USA participates in the United Way Drive initiative to support local non-profit organizations which provide economic assistance and psychological support to persons in difficulty
Florim USA provides regular support to the Salvation Army by collecting canned foods for persons in needIn 2016 the company again organised a canned food collection for Manna Cafeacute in Clarksville TN Manna Cafeacute is a local non-profit organization based in Middle Tennessee with the primary mission of meeting peoples fundamental need for food before encouraging them to permanently change their lives for the better More than 15 of the population in Montgomery County are affected by food insecurity (about 28000 people) The percentage of children affected is about 215 a third of whom are excluded by income from federal programs such as free school mealsFinally donations were made tobull American Lung Association the leading organization working to save lives by improving lung health and preventing lung disease through research and educationbull Cheer for a Cure an organization that gives money directly to afflicting families who have a loved one suffering from cancer and need assistance to alleviate the added financial stressbull Habitat for Humanity Since 1992 Habitat for Humanity in Montgomery County Tennessee has worked with 93 low-income families with more than 210 children to revitalise various parts of Clarksville-Montgomery County by building new homes
2016 Sustainability Report 43
Quality SystemFlorim USA works under a Quality System certified to UNI EN ISO 9001 standards The following are some of the figures in brief
Objective Indicator 2012 2013 2014 2015 2016
Optimisation of control of the production process
Percentage of First Grade Product ()
932 917 940 949 9510
Quality rate () 883 857 893 906 909
Scrap rate () 56 65 48 45 45
KeyPercentage of first grade product ratio between square feet of first grade material and total square feet transferred to stockQuality rate ratio between square feet of first grade material transferred to stock and square feet pressedScrap rate ratio between square feet pressed and square feet of product actually transferred to stock
Other ActivitiesFlorim USA and trade shows
In 2016 Florim USA participated at a number of shows and events including Coverings the AIA Tennessee Convention Hardscape North America Total Solutions Plus Neocon International Pool - Spa and Patio Expo These events targeted at the various categories of industry professionals such as dealers and designers gave Florim USA the opportunity to present its new range of indoor and outdoor products
Design Center
In December 2015 Florim USA opened a design center showroom in Nashville (TN) in a strategic location close to the airport and the city center With a spacious area to host individual CEU presentations and workshops this design center has the potential to be a major resource for local architects In 2016 it was also awarded the ldquoOutstanding Boothrdquo booth prize at the 33rd edition of the Annual Home Decorating and Remodeling Show The location is the ideal place for sharing ideas finding inspiration and putting professionals and architects in touch with each other
Florim Nashville Design Center
2016 Sustainability Report44
GRI International Sustainability Indicators SDGsThe information below illustrates the correspondence between the Florim (Italian companies) 2016 Sustainability Report the GRI-G4 guidelines and the icons of the Sustainable Development Goals (SDGs) definitively adopted by the United NationsA description of the SDGs is available at wwwglobalcompactnetworkorg
GRI indicators
Description Page Reference to SDGs
1 Strategy and Analysis
G4-1 Statement from the most senior decision-maker of the organization 5
2 Organization profile
G4-3 Name of the organization 2
G4-4 Primary brands products andor services 9
G4-5 Location of the organizations headquarters 9
G4-6 Number and names of the countries where the organization operates 9
G4-7 Nature of ownership and legal form 14
G4-8 Markets served 9
G4-9 Scale of the organization 8 8
G4-10 Significant changes regarding size structure or ownership 8
G4-11 Employees covered by National Collective Bargaining Agreement 27
G4-12 Describe the supply chain 16
G4-13Significant changes regarding the organizationrsquos size structure ownership or its supply chain
Reporting process
launched
G4-14 Precautionary principle 22
G4-15 List of external commitments in which the company is involved 22 32 33
G4-16 Associations or interest groups in which the company is involvedwwwflorimit gt
about us gt partnerships
3 Identified material aspects and boundaries
G4-18 Process used to define the report content 6
G4-19 Material aspects 16
G4-20 Boundaries of each material aspect 6
G4-21 Boundaries of each material aspect outside the organizationPartial reporting
(pages 6 16)
G4-22 Explanation of the effect of any restatements of information provided in previous reports 6
G4-23Significant changes from previous reporting periods in the scope boundaries or measurement methods
6
3 Stakeholder engagement
G4-24 List of stakeholders 15
G4-25 Identification of stakeholders 15
G4-26 Stakeholder engagement 6 16
G4-27 Key topics and concerns that have been raised through stakeholder engagement 16
4 Boundary of the Report
G4-28 Reporting period 6
G4-29 Date of publication 2
G4-30 Reporting cycle 6
G4-31 Contacts and addresses for additional information 46
5 GRI Content Index
G4-32 Reporting option chosen 6 7
G4-33 External assurance of ReportThe Report is not
externally assured
2016 Sustainability Report 45
GRI indicators
Description Page Reference to SDGs
6 Governance
G4-34 Governance structure 14
7 Ethics and integrity
G4-56 Values principles standards and norms of behavior 13 16
Economic performance indicators
EC1 Direct economic value generated and distributed 19 25789
EC5 Wages 27 158
EC7 Development and impact of infrastructure investments and services supported 23 24 31 257911
Environmental performance indicators
G4-EN2 Percentage of materials used that are recycled input materials 17 22 23 812
G4-EN3 Energy consumption within the organization 24 781213
G4-EN6 Reduction of energy consumption 17 24 71213
G4-EN7 Reductions in energy requirements of products and servicesPartial reporting
(page 22)71213
G4-EN8 Total water withdrawal by source 17 23 6
G4-EN10 Percentage and total volume of water recycled and reused 17 21 23 612
G4-EN11 Biodiversity 23 615
G4-EN15 Total indirect greenhouse gas emissions by weight 25 3121315
G4-EN16 Total indirect greenhouse gas emissions by weight 25 3121315
G4-EN19 Reduction of greenhouse gas emissions 8 24 1315
G4-EN21 NOx SOx and other significant air emissions 25 31215
G4-EN22 Total water discharge by quality and destination 23 6
G4-EN23 Total weight of waste by type 17 22 3612
G4-EN27 Impact mitigation of environmental impacts of products and services 23 68121315
G4-EN29 Monetary value of significant fines 22 16
G4-EN30 Significant environmental impacts of transporting products and goodsmaterialsPartial reporting
(page 25)111213
Social performance indicators
G4-LA1 Total number and rates of new employee hires and employee turnoverPartial reporting
(pages 17 27)8
G4-LA6 Workplace injury ratesPartial reporting
(page 17)38
G4-LA9 Average hours of training per year per employee 28 48
G4-LA12Composition of governance bodies and breakdown of employees according to gender age group etc
27 58
G4-LA13 Ratio of basic salary and total remuneration of women to men 27 5810
Society
G4-SO1 Operations with local community engagement 12 31 16
G4-SO3 Operations assessed for risks related to corruptionPartial reporting
(page 13)
Product responsibility
G4-PR1 Assessment of health and safety impacts for improvement 23 32
G4-PR3 Type of information about products and services required by the procedures 32 12
G4-PR5 Proceedings relating to customer satisfaction including surveys conducted to measure it 33
G4-PR6 Sale of banned or disputed products 32
G4-PR8 Number of substantiated complaints regarding breaches of privacy 32 16
2016 Sustainability Report46
Your Assessment
You are kindly requested to take a few minutes of your time to give us your assessment and any suggestions to enable us to improve future editions of our Sustainability Report
Click here to send us your feedback
To keep up to date with our business
Spazio CEDIT - interior (Milan)
wwwflorimiten
Florim Ceramiche
Florim4Architects
Florim_ceramiche
Florim Ceramiche spa
Florim Ceramiche
Florim Ceramiche
For any further information please feel free to contact our communications department comunicazioneflorimit
2016 Sustainability Report 47
Premio Lucchese - Florim Gallery (Fiorano Modenese - Modena Italy)
Intrapresaelig Guggenheim Collection - Massimo Bottura in Florim Gallery (Fiorano Modenese - Modena Italy)
Panathlon Christmas Gala - Florim Gallery (Fiorano Modenese - Modena Italy)
2016 Sustainability Report48
White Christmas Party - Florim Gallery (Fiorano Modenese - Modena Italy)
Cersaie - Mario Biondi in Florim Gallery (Fiorano Modenese - Modena Italy)
Dal buio alla luce - Social event at Florim Gallery (Fiorano Modenese - Modena Italy)
2016 Sustainability Report 49
Florim Gallery entrance (Fiorano Modenese - MO)
2016 Sustainability Report52
Florim Ceramiche spaVia Canaletto 24 - 41042 Fiorano Modenese (Modena Italy) - Tel +39 0536 840111 - wwwflorimit
2016 Sustainability Report12
In the age of digital transformation Florim still believes in the importance of creating opportunities for meeting and exchanging ideas and in 2016 more than 12000 people came to the Florim Gallery (a multi-purpose space of 9000 msup2 at the Fiorano headquarters) Events of social usefulness workshops community projects and business occasions our training events and hospitality staff were busy on many different fronts It was also a major year for off-site events The Florim Flagship Store in Milan and the just-opened New York Flagship Store hosted more than 3200 people at events for architects and designers supported with important partnerships with POLIdesign and leading publishersFlorim also chose the world-famous Peggy Guggenheim Collection in Venice as the location for two exclusive events to highlight the partnership agreement signed with Guggenheim Intrapresaelig A dinner in the wonderful setting of the museums panoramic terrace followed speeches by distinguished guests Ettore Mocchetti Martino Gamper Domitilla Dardi Giorgia Zanellato Daniele Bortotto Franco Guerzoni and Benedetto Fasciana The final event of the year was held for the employees with a ldquoWhite Christmas Partyrdquo evening at a Florim Gallery decorated for the festive season
A year of Florim events
LrsquoArte del Design - Florim event at the Peggy Guggenheim Collection (Venice)
2016 Sustainability Report
View the Florim eventat the Guggenheim
2016 Sustainability Report 13
GOVERNANCE
Code of EthicsThe groups governance plays a central role in the responsible development of its business ensuring ethical transparent management of its operations with its stakeholders interests always in mind
After approving the Governance Model compliant with the provisions of Italian Legislative Decree 2312001 the Florim Board of Directors signed and promoted the corporate Code of Ethics (revised in June 2016) which has become an integral part of Florims business and is accepted by every new employee supplier and agentTo guarantee the application of and compliance with its contents a Supervisory Board was established to detect any breaches of its provisions All stakeholders can also contact the Supervisory Board (organismodivigilanzaflorimit) for further explanations regarding the interpretation and application of the corporate Code of Ethics as described on the corporate websiteThe following is an extract from the rules of conduct which govern the way we do business
Our mission
To manufacture ceramic tiles and materials for multiple uses and offer the most appropriate solutions for both interior design and architecture To constantly prioritise environmental sustainability attempting to satisfy the needs of customers and to create value for shareholders employees and the local community in compliance with the ethical principles and rules of conduct set out in the Code of Ethics
Our vision
To be at the cutting edge of technical and design innovation in ceramics by developing materials and production methods that position us as a constant benchmark for customers architects and competitors
Our values
Honesty and Respect all internal and external relationships must be based on honesty and respect for rules and dignity of the individual
Corporate Social Responsibility corporate social responsibility must be promoted through measures and practices adopted to support the local environment and community
Individual Responsibility everyone must be aware of the worth and consequences of their own actions
Quality and Innovation excellence must be pursued by improving products processes and skills to promote corporate success
Transparency intentions and positions must be expressed openly and clearly without misunderstandings or misrepresentation to build lasting relationships based on trust both inside and outside the company
Courage a moral strength which enables us to undertake and deal with changes difficulties and challenges to benefit from all the opportunities they offer
Feeling of Belonging feeling proud to be a part of one big team made up of the company associates customers and suppliers
Management System Policy
To achieve greater and greater transparency in its reporting the company has drawn up guidelines for its quality environment safety and energy management system Read more
2016 Sustainability Report14
Corporate BodiesFlorim Ceramiche spa is a family-run business with fully subscribed paid-up share capital consisting of 50000000 ordinary shares with a face value of 1 Euro each The capital is 100 owned by the holding company FinFloor spa with registered office in Fiorano Modenese which is in turn indirectly owned by the Lucchese family through Fin-Twin spa
The Board of Directors has 11 members
CLAUDIO LUCCHESE Chairman
DONATO BRUNI Deputy Chairman
MARIADELE LUCCHESE Director
ANNA LUCCHESE Director
FRANCESCA LUCCHESE Director
GIOVANNI LUCCHESE Director
The Board of Directors has a mandate of one year and new elections will coincide with the approval of the financial statements The Board of Statutory Auditors is composed of three members whose term of office is three years from their appointment on 1252016 until approval of the 2018 financial statements The financial statements of Florim spa and the consolidated financial statements of FinFloor spa and Fin-Twin spa are audited and certified by Deloitte spa
Corporate StructureThe changes to be noted since the previous financial statements include the incorporation of ldquoMordano 4 srlrdquo and amalgamation by acquisition of Maker srl in Florim Ceramiche spa
KRONOS 2 CERAMICHE spaShare capital euro 1646799
Fondazione Ing G LuccheseEndowment euro 60000
FABBRICA delle MATERIE srlShare capital euro 10000
EDIL FLOOR surlShare capital euro 9812681
ISABELLA srlShare capital euro 100000
FI HOLDING IncShare capital USD 50000
100
10
100
30
9667
100
1
1
99
99
100
FIN TWIN spaShare capital euro 540800
FINFLOOR spaShare capital euro 10500000
542810
FLORIM CERAMICHE spasingle shareholder companyShare capital euro 50000000
100
FLORIM BRASIL LtdaDISTRIBUICcedilAtildeO DE CERAcircMICAS Ltda
Share capital R$ 46100000
FLORIM RUSShare Capital 100000 Roubles
FLORIM USA incShare capital USD 51865541
FLORIM SOLUTION IncShare capital USD 845943
100
MORDANO 4 srlShare capital euro 100000
85
FLORIM FAR EAST PTE LtdShare capital S$ 10000
100
ERMES GIUSEPPE FERRARI Managing Director
GIOVANNI GROSSI Managing Director
OSCAR ISEPPI Managing Director
DORVAN SAZZI Managing Director
STEFANO TORRENTI Managing Director
2016 Sustainability Report 15
StakeholdersStakeholders are all individuals and groups who may influence or be influenced by a companys operations in terms of policies products and working processes shareholders employees customers and consumers suppliers local government the local community banks and trade unions
Employees and Trade Unions
Florim makes the following commitments to its employees
bull to guarantee equal opportunities fair pay and professional growth
bull to reward its human resources on the basis of transparent meritocratic criteria
bull to create safe working environments and processes
bull to guarantee transparency and clarity in contract conditions
bull to encourage dialogue and internal communications
Customers and Consumers
In dealing with its (retail) customers Florim is committed to
bull creating a relationship of trust as a stable basis for business
bull guaranteeing clarity in contracts and prices
bull guaranteeing the reliability of its products and developing customer service
bull offering innovative safe environmentally sustainable products
bull providing a diversified offering with services with high value added
The overall aim is also to satisfy the expectations and demands of the final consumer
Developers Architects and Interior Designers
To meet the needs of developers Florim is committed to
bull offering state-of-the-art solutions in terms of environmentally sustainability technology and design
bull establishing and fostering relationships with partner professionals
bull providing consulting and technical experience from the project concept through to installation
bull supplying turnkey solutions
Local Communities and Local Government
In its relationships with local communities and local institutions Florim is committed to
bull guaranteeing dialogue cooperation and transparency
bull giving value back to the local communities in the areas where it operates
bull continually improving the environmental performances of processes
bull researching developing and using the most sustainable technologies
bull making an economic contribution to local sporting and social projects for children and young people
Suppliers
When selecting its suppliers Florim pays close attention to companiesrsquo CSR practices Florims relationships with its suppliers are based on compliance with the values of its code of ethics otherwise contracts are automatically terminated Florim also guarantees certainty in payment times and compliance with contract terms provided the goods and services contracted are delivered as agreed
ERMES GIUSEPPE FERRARI Managing Director
GIOVANNI GROSSI Managing Director
OSCAR ISEPPI Managing Director
DORVAN SAZZI Managing Director
STEFANO TORRENTI Managing Director
2016 Sustainability Report16
Materiality ApproachIn 2015 the company began an internal analysis process based on the materiality principle in order to identify the sustainability issues of relevance both for the Group (including Florim USA) and for all stakeholders Materiality is the threshold above which a topic becomes sufficiently important to be included in the report In fact organizations are faced with a large number of topics on which they could report Relevant topics and indicators are those considered important for reflecting the organizations economic environmental and social impacts or which influence the decisions of its stakeholder and which therefore potentially merit inclusion in the report In accordance with the GRI ndash G4 Guidelines Florim has analyzed and identified relevant topics which were assessed by the working team which drafted the Sustainability Report on the basis of discussion with the main stakeholders The findings which emerged were supported by a qualitative survey external to the companys context examining an analysis of the press gallery (more than 650 articles) competitors Sustainability Reports the Emas Study of the Fiorano and Sassuolo Ceramics District and the GRI document ndash ldquoSustainability Topics for Sector What do Stakeholders want to knowrdquo
In the chart below the aspects found to be most important appear in the top right-hand corner and constitute a strategic priority for the Group The topics in the bottom left-hand corner such as biodiversity prevention of corruption and absence of discrimination are less relevant because they are easy for both the organization and stakeholders to manage and no problems have ever been reported over the years Similarly the protection of human rights is now taken for granted since Florim complies strictly with all the provisions of the National Employment Contract
Importance for stakeholders
Importance for Florim spa
low
m
ediu
m
high
low medium high
Biodiversity
Indirect economic impacts
Prevention of corruption
Market share
Absence of discrimination
Sustainable transport
management
Protection of Human Rights
Environment and safety
Water saving
Energy efficiencyRaw materials
Diversity and equal opportunities
Transparency of financial and other
information
Ethical supplier
management
Investments in the local community and social welfare
Direct and indirect environmental
impacts
Green products and
services
Economic performance
Quality of products offered to customers
Regulatory compliance
Development of human resources
and training
ENVIRONMENT
COMMUNITY
EMPLOYEESASSOCIATES
ECONOMIC PERFORMANCE
PRODUCT RESPONSIBILITY
HUMAN RIGHTS
2016 Sustainability Report 17
FinFloor consolidated (in thousands of Euro) 2012 2013 2014 2015 2016
Net earnings 315344 325853 329533 374094 406759
EBIDTA 59608 72986 84395 98115 107186
Operating result 35717 50996 58508 66255 71028
Gross cash flow 52710 68312 83274 97268 109148
Net profit 26103 35732 36433 43324 49347
Net financial indebtedness (127730) (96500) (54524) (27326) (12508)
Final inventory 95514 84432 90283 92795 96721
Net shareholders equity 186905 218847 276916 332721 369937
Total investments 32572 48780 41584 34215 53531
2012 2013 2014 2015 2016
Waste produced (t) 30228 21170 22300 30862 34423
Recycled third-party waste (t) 4028 4190 1721 2570 5627
Total water consumption (msup3) finished product (t) 075 075 078 069 071
Recycled water percentage 100 100 100 100 100
Self-generated energy in relation to consumption 67 68 62 65 75
Investments in environmental management (euro000) 13617 2493 1995 465 6400
2012 2013 2014 2015 2016
Number of employees at 3112 1037 992 984 982 987
Total number of training hours 14690 9124 9056 7176 10606
Number of training hours on environment and safety 7572 4514 4200 3008 2489
Number of workplace injuries 63 62 74 56 43
Environmental and social profile figures refer to Florim Italy for Florim USA please see the relevant section (from page 37)
REPORTING
In brief
Economic Profile
Environmental Profile
Social Profile
2016 Sustainability Report18
Economic Responsibility
Comments on 2016 Economic Data
The Groups 2016 results were again good from every point of view
Compared to the previous year turnover increased by 87 leading thanks to careful management of production costs to an EBITDA of Euro 1071 million equivalent to 263 of turnover and a profit after tax of Euro 493 million
The companys financial data also significantly improved with a net financial position of Euro 125 million compared to Euro 273 million at the end of 2015 in spite of record technical investments of Euro 535 million and financial investments of Euro 11 million
Once again underlying the results achieved were large investments in latest-generation machinery and technologies painstaking research to develop materials with exceptionally high technical and design content human resources and projects for the increasingly direct promotion of Florims image and quality standard
Investments
The technical investments made in 2016 amount to Euro 535 million while Euro 11 million was spent on reacquiring 100 ownership of Maker srl followed by its amalgamation with Florim spa on 31 December The most important industrial projects included the continuation of the work on the Mordano plant which involved investments of Euro 26 million for the restructuring of the raw material preparation area and the doubling of production capacity for traditional porcelain stonewareThe investments of US$ 18 million at Florim USA were utilised to complete the renewal of the raw material preparation area and construct a new building for the technical organizationFinally about 9 million Euro was invested at Fiorano on various production line modernization projects
A creative hub for design style and new trends Milan once again confirms that it is the ideal setting for Florims investments and the opening of the all-new ldquoSpazio CEDITrdquo confirms the companys determination to strengthen its bonds with design professionals working in high-end interior design The culture of beauty art architecture and design are all integral to the genetic make-up of CEDIT ndash the historic Italian brand relaunched by Florim in 2016 ndash and dominate the display areas and the first six ceramic covering collections styled by famous names on the contemporary creative sceneOn two levels with a total floor area of more than 200 msup2 the space maintains the same stylistic identity as the one at Fiorano Modenese since they are both constructed to an architectural design intended to be replicated in CEDIT customers showrooms worldwide
Spazio CEDIT Watch theinauguration video
2016 Sustainability Report 19
Economic Value Generated and Distributed
The figures for the economic value generated and distributed provide a simple clear explanation of how Florim has created wealth and redistributed it to its stakeholders The table below contains the data from Florims 2016 financial statements approved by the Board of Directors on 30 March and certified by external auditorsThe economic value directly generated is represented by the total earnings for 2016 while the economic value distributed includes the costs incurred for suppliers and employees payments to the state (taxes) and the donations which had positive repercussions for the community to which Florim spa belongs
Heading 2014 2015 2016
Revenues 253125 269855 302521
Direct economic value generated 253125 269855 302521
Operating costs 135735 150951 168809
Employee wages and benefits 56985 58149 62418
Payments to providers of capital 7413 6399 11903
Payments to government 15738 13162 15382
Community investments 221 212 240
Economic value distributed 216092 228873 258752
Economic value retained 37033 40982 43769
KeyRevenues net sales plus revenues from financial investments and sale of assetsOperating Costs payments to suppliers non-strategic investments royalties payment facilitationsEmployee wages and benefits employee wages and benefits per employees (current payments)Payments to providers of capital all payments to the organizations providers of capitalPayments to government gross taxes and dutiesCommunity investments voluntary donations and investments in the communityEconomic value retained calculated as economic value generated less economic value distributed
The data in the table are in thousands of Euro and refer to the consolidated financial statements of the Italian companies only
KBIS (USA) - detail of the stand created with ldquoI Classici di Rexrdquo
2016 Sustainability Report20
Casa dolce casa ndash Argille 20 Collection
2016 Sustainability Report 21
Environmental ResponsibilityEffective environmental policy management energy saving and emissions reduction are amongst Florims strategic sustainability objectives
Our green projects in figures
2 highly-regarded process certifications
ISO 14001 (ENVIRONMENT)and ISO 50001 (ENERGY)
849873 MWh is the amount of electricity the
company succeeded in producing in-house during 2016
2 departments (marketing and communications)
engaged on digitizing advertising tools
8462 tons of CO2 NOT emitted
CO2
100 is the percentage of wastewater recycled
16000 msup2of photovoltaic panels covering
an area of 30000 msup2
75 is the percentage of the electricity consumed which is
produced in-house
4 latest-generation industrial kilns installed in
the last 3 years
4 different types of environmental product
certification
2 cogeneration plants to increase energy saving
and efficiency
1 laboratory for the development of contemporary design projects with a specific focus on the materials green
content
100is the percentage recycling of
industrial greenware waste in the production process
2016 Sustainability Report22
Certifications
System and process certifications
UNI EN ISO 14001TUumlV has awarded Florim the highly-regarded UNI EN ISO 14001 voluntary certification which confirms its compliance with a series of internally certified procedures intended to improve the internal environmental management system The decision to seek this certification springs from the desire to reconcile quality with efficiency and productivity while protecting the environment and community in which the company operates
UNI EN ISO 50001Thanks to a careful energy management policy and aided by the latest investments in the production area also intended to improve energy efficiency Florim was the worlds first ceramics manufacturer to obtain ISO 50001 certification of its Energy Management System
In addition to its environmental certifications Florim has also been awarded prestigious AEO (Authorized Economic Operator) status
Further to a lengthy and demanding audit process by the Customs Authorities in 2016 Florim was awarded AEO certification the first company in the Province of Modena to receive this major form of approval Authorised Economic Operator status guarantees the companys absolute compliance with customs and security requirements in its foreign trade
Environmental Management
Waste 2012 2013 2014 2015 2016
Total waste produced (t) 30228 21170 22300 30862 34423
Non-dangerous recyclable waste (such as paper and cardboard fired scraps plastic glass and wood) ()
989 982 985 991 989
Non-dangerous disposed-of waste (such as the waste picked up by the motor sweepers) ()
02 04 02 02 02
Dangerous recyclable waste (such as spent oil batteries and monitors) ()
00 01 01 01 00
Dangerous disposed-of waste (such as spent lime) () 01 13 12 07 09
Third-party waste recycled within the production process (t) () 4028 4190 1721 2570 5627
Besides recycling greenware waste from its own production cycle (not included in the table because the amount cannot be calculated) Florim also recycles third party waste
Florims operations have always been oriented towards optimization of impact on the local community and environment Thanks to the work of its research laboratories the support of all staff and the recent investment plans tangible results have been achieved The data provided below reveal that in spite of an increase in production of 8 compared to the previous year consumption remains low The companys commitment to environmental protection is all-inclusive and also comprises a focus on the district within which it operates One example is the total removal of all asbestos cement from the Fiorano Modenese plant and the creation of the new recycling station opened in 2015 and donated to the Local Authority as a public serviceAs in previous years during 2016 Florim was not fined for any breaches of environmental regulations or laws
Florim recycles and optimises within the production process all greenware scraps dust residues from filters and sludge from the process and rectification wastewater treatment system The waste produced is detailed in the table the significant differences between years are due mainly to the major demolition and subsequent reconstruction works undertaken at the Italian plants
Waste Management
2016 Sustainability Report 23
Water Resources
No environmental impact of wastewater discharges is specified since all the water from the production cycle is completely reused (100) All other effluents comply with legal requirements
The figure states the total cubic meters of water used per ton of finished product The water used in the Fiorano production process is drawn from private company-owned wells with water from the public main only used for non-industrial purposes The Mordano plant is supplied by an industrial water main Water use is measured by means of meter readings Four highly innovative dry rectifying plants have gone into production at Mordano since 2015 enabling the company to eliminate the physicalchemical treatment of the water used in the rectification process
WATER USE
2012
08
2013
08
2014
08
2015
07Total water consumption (msup3) finished product (t)
07
2016
All packaging used for Florim materials is made from recycled paper and parts of the coverings used to protect pallets of finished products consist of recycled plastic Whats more all the packaging used (boxes cardboard shrink wraps pallets etc) can be completely recycled by the end user The latest investments made include new eco-friendly packaging machines increasing the number of these machines installed to 15 These plants completely eliminate waste due to leftover inventory saving significant amounts of cardboard
Packaging and Coverings
As the materiality assessment states Florim has no significant impacts on the biodiversity of its local area since the company is located inside the Fiorano Modenese ceramics manufacturing district at least 5 Km from the nearest nature reserve at Salse di Nirano Florim takes special care over the choice of the raw materials used for its tile body mixes of which it is required to provide documentation guaranteeing compliance with the European Directives protecting wild birds (EU Dir 79409EEC) and habitats (EU Dir 9243EEC) and the United Nations Convention on the protection of biodiversity It has also introduced a software program - used at the 3 production plants (Italy and the USA) - for the management of data on the origin of raw materials such as quarry location distance from the factory recycled content declaration technical safety and radioactive content data sheets and the expiry of the quarrying permit issued by the government
Raw Materials and Biodiversity
2016 Sustainability Report24
Energy Management
There is no disputing that large amounts of energy are required to power the production processes of ceramic tile plants with consequent direct and indirect impacts on the local area and the environmentThe main indicator used to measure plants energy performance is the mean specific total energy consumption (TEJ) measured in GJt of product transferred to stock As the table below shows this figure is obtained by adding together heat consumption (NGJ) and electricity used (EEJ)
Parameter ndash Definition Unit of measurement
2012 2013 2014 2015 2016
NGJ Mean specific natural gas consumption in relation to the unit of weight of finished product transferred to stock
GJt 557 571 576 578 598
EEJ Mean specific electricity consumption in relation to the unit of weight of product transferred to stock
GJt 111 108 111 108 107
TEJ Mean total specific energy consumption in relation to the unit of weight of product transferred to stock
GJt 668 679 686 685 705
Self-generated electricity as a proportion of consumption
67 68 62 65 75
With two cogeneration plants (for the combined in-house production of heat and electricity) and 16000 msup2 of photovoltaic panels the company certainly sets a new benchmark for the entire ceramic tile industry 2016 saw the replacement of the Fiorano turbine set (the main component of the cogeneration plant) while the one in Mordano was kept in operation 247 factors which led to a 10 increase in in-house electricity production in relation to consumption To provide a clearer idea of the scale of the achievement the amount of electricity the company generated in-house in 2016 (849873 MWh) would cover the average annual consumption of about 37000 households (With consumption per household of 229 MWh - data from the latest ISTAT survey in 2012ndash calculated on the Italian average)
Photovoltaic Plant
kWp kWh produced kg of CO2 not emitted
270021 15937250 8462680
Good Practice
The head office organizations are also optimizing paper and energy consumption In addition to issuing and distributing the energy saving handbook for its offices the company is also trying to maximize savings on the raw material used and specifically the use of paper Internally the company only purchases reams of paper which carry environmental certification and the paper used in offices is collected separately for proper disposal Externally the company distributes a system of merchandising products made mainly from recycled paper and encourages the gradual digitization of its marketing tools as well as publishing all its catalogues in digital format on its Internet sites Florim offers its distributor companies an innovative digital touch screen tool with the pdf versions of the catalogues and other tools for the final consumerIn 2016 Florim decided to adopt a new payslip distribution procedure introducing an online processing system As well as providing employees with new functions and greater operating flexibility thanks to this system the company no longer prints out the monthly payslips saving paper ink and energy The scheme initially involving all office workers has the ambitious target of also including the staff of the Fiorano and Mordano plants
The 16000 square meter photovoltaic plant received recognition from GSE (Energy Management Services) as one of the most innovative installations of its type and from its commissioning (October 2011) up to December 2016 it produced the following results
2016 Sustainability Report 25
Atmospheric Emissions
The industrial facility emits greenhouse gases basically CO2 from the following main sourcesbull combustion from the burning of fossil fuels (such as natural gas)bull processes from the minerals in the raw materials any organic matter in the clays used and any organic additives in tile body mixes
In order to comply with Directive 200387EC (ETS - Emission Trading Scheme) Florim has been reporting and certifying its CO2 emissions since 2013
CO2 emissions 2013 2014 2015 2016
CO2 emissions (t) 102728 103462 111862 132960
CO2 emissions (t) Finished product (t) 033 033 033 035
Emissions from the production cycle 2013 2014 2015 2016
Particulate material (gmsup2 finished product) 223 130 098 118
Lead (gmsup2 finished product) 000 000 000 000
Fluorine (gmsup2 finished product) 014 018 013 012
The increase in CO2 is due mainly to the large increase in the square meters produced (+ 8) and the 247 use of the cogeneration plant However it should be noted that the cogeneration plant provided a 10 increase in in-house electricity generation with lower CO2 emissions than electricity purchased from the grid produced mainly using fossil fuels (source ISPRA Fattori di emissione atmosferica di CO2 e sviluppo delle fonti rinnovabili nel settore elettrico Rapporti [Atmospheric CO2 Emission Factors and Development of Renewables in the Electricity Sector Reports] 2122015)The ratio between CO2 emissions and tons of finished product produced increased because in 2016 the sale of spray-dried material to other companies rose compared to the previous year (emissions from this phase are included in the emissions count but there is no corresponding output of finished product)
In a change from previous years the new GRI-G4 guidelines also require reporting of nitrogen oxide and sulphur oxide emissions Nitrogen oxide (NOx) emissions are within the limits permitted under the integrated environmental authorisation Sulphur oxide (SOx) emissions are not reported here since this figure is not required by the IEA
Transport
The materiality study reveals that transport is a significant factor for both stakeholders and Florim itself The company is not able to measure the impact of transportation of finished product on the local area since all shipments are ex-works However Florim which has been introducing electric vehicles to replace its oldest most obsolete unleaded petrol forklifts for years now has further optimized the handling of materials thanks to the new highly-automated logistics hub created at the via Canaletto location In 2016 about 53 of the vehicles used on the companys premises were electric with no direct greenhouse gas emissions
2016 Sustainability Report26
CEDIT ndash Creative Composition
2016 Sustainability Report 27
Workforce Composition
In 2016 the workforce included 27 people with disabilities 6 women and 21 menBearing in mind the job descriptions arising from the specific industrial sector the breakdown between men and women is in line with the industry average Male office workers and executives earn an average of 10 more than women for jobs of equal responsibility Among blue-collar workers the difference is 7 The company had a total of 29 foreign employees 24 at Fiorano and 5 at Mordano
Manager Executive Office worker
2013 2014 2015 2016 2013 2014 2015 2016 2013 2014 2015 2016
Women 2 3 3 3 3 1 1 1 137 142 133 149
Men 18 21 20 18 21 24 25 28 127 132 128 132
Total 20 24 23 21 24 25 26 29 264 274 261 281
Office ancillary Blue-collar worker Total
2013 2014 2015 2016 2013 2014 2015 2016 2013 2014 2015 2016
Women 18 16 25 19 226 219 212 196 385 381 375 368
Men 64 68 79 64 376 358 356 377 607 603 607 619
Total 82 84 104 83 602 577 568 573 992 984 982 987
Social Responsibility
Employees amp Corporate welfare
Its employees are the heart and soul of Florim they provide its character and its DNA Since 2009 when the current major economic crisis began Florim has undertaken a number of income support programs for its workforce Below we summarise some of the ongoing programmes and others run in 2016bull Ending of the Income Support Program for the Mordano plantbull Agreement with Sassuolo Hospital under which Florim employees and their family members enjoy discounts and shorter waiting times for specialist examinations and outpatient diagnostic tests performed on a private basisbull Special agreements with local health facilitiesbull Tax advice at special rates bull Special terms for banking services with financial consultants on-sitebull Discounts on the purchase of Florim products for employees homesbull Free entry to the Peggy Guggenheim Collection in Venice for employees and concessions for family membersbull Free provision of water and mineral salts in the plants during the summerbull Distribution of fuel vouchers to employees for the Christmas holidays
Summer Play Schemes and Cregraveches
In 2016 the summer play schemes for the children of employees at Fiorano and Mordano were continued for the fifth year in succession Seven different centers across the area between Modena and Bologna hosted 85 children (twice the number of the previous year) the company paid the fee for two weeks attendanceWhats more since 2013 the company has negotiated special terms with local cregraveches which now offer a number of places for employeesrsquo children at a reduced fee
2016 Sustainability Report28
Human Resources Management Policies
In July 2015 on renewal of the in-house supplement to the national employment contract the Management introduced a new phase in its relations with the Trade Unions with the aim of continuing and improving the good relationships enjoyed for decadesThe new company contract applied for all employees at the Fiorano headquarters includes more facilitations for part-time working the willingness to allow flexitime where feasible and the commitment to invest in staff training in order to generate full benefits from intellectual capital The company and the trades unions agreed on a plan to improve efficiency fundamental for maintaining the current level of competitiveness by establishing improvement in Production Efficiency and EBITDA as criteria for the payment of the new Performance Bonus The individual Attendance Score is considered together with these parameters The 2016 Performance Bonus in its first year of application was 20 higher than that paid in 2015 In addition in response to employees requests the Company increased the number of approved canteens extending the choice available and also introduced weekly laundering of work clothing for all production workersWith regard to applications for severance pay advances the Company confirms its commitment to continuing the policy implemented so far
Training
Florim believes that in-house training plays a key role in the companyrsquos development and provides a tool for stimulating and fulfilling the potential of its human resourcesMore than 10600 training hours were provided in 2016 to 847 people with an average of more than 11 hours of training per employee New projects included a 6-month on-line English language course which attracted a large number of participants and two highly structured training courses for the sales division and the communication department A retraining program for workers at the Mordano plant was also completed it comprised 4 technical courses attended by 31 people for an average of 13 hours per person Another new entry for 2016 was an innovative procedure for acquiring information about training needs using an on-line questionnaire available to all employees as well as line managers specific recommendations The Master in Florim project is discussed in depth in the specific section
Health and Safety
Florim was the first Italian ceramics manufacturer to receive BS OHSAS 18001 (Occupational Health amp Safety Assessment Series) certification from TUumlV this international standard certifies the implementation of an internal management system oriented towards occupational health and safetyThis major award confirms the companys constant commitment to the well-being of its employees Every year in addition to engineering inspections and machinery maintenance a number of hours of safety training are organised to raise awareness among workers and supervisors Specifically in 2016 2849 hours were dedicated to safety training and a significant reduction in injury rates was recordedMoreover BLSD refresher courses are continuously held for the team of Florim employees trained in first-aid operations and the use of the defibrillators available on site
2012 2013 2014 2015 2016
Number of workplace injuries 63 62 74 56 43
2016 Sustainability Report 29
The Master in Florim organized for the fourth time in 2016 is a vocational training project which aims to bridge the gap between education (high school or university) and the world of work The program which is one of the companys Social Responsibility projects sets out to help young people to get to know the company through a well structured work experience plan It offers a distinctively northern European approach with a method which alternates classroom teaching with internships in the various areas of the company Participants new university or high school graduates specialising in various subjects all below 30 years of age are therefore able to gain hands-on experience of all Florim departments from RampD to the production process and product distribution for an all-inclusive vision The MASTER courses ambitious aim is to match the individual participants talents with the companys real needs At the end of each edition the company hires all or some of the selected candidates enabling it to acquire new skills new experiences and new energy
Master 40 in figures
20 young people taking part6 months of training13 external lecturers264 hours of classroom teaching392 hours of practical training4 company visits (Ferrari Tetrapak Cremonini and Ducati)50 days of work experience on rotation involving 15 departments1 month of project work
The projects prestige is enhanced by its economic context since Florim pays the young participants for the entire period and its aim is to deal with the thorny problem of youth unemployment The Master has won approval from various faculties at major Italian universities The project was also a winner in the Emilia-Romagna Regions 2016 awards for Corporate Social Responsibility projects run in the local community A prize in the ldquoBusiness and Educationrdquo category was assigned to the Master project which aims to give young people the skills required for sustainable development
Master in Florim
2016 Sustainability Report
Watch the videoof the 4th edition
2016 Sustainability Report30
Local Community amp Culture
This chapter describes a number of programs Florim runs for the local community in the area where it originated and where it has been working for more than 50 years
Politecnico di Milano
Since the 20052006 academic year Florim has been a partner sponsor of a large number of Postgraduate Courses run by POLIDesign the Politecnico di Milano consortium which organizes its Master Degree coursesAlso in association with POLIDesign since 2012 Florims Milan showroom has hosted several design events for architects and designers of every nationality
Aziende modenesi per la RSI
ldquoAziende Modenesi per la RSIrdquo an independent open inclusive association of companies in the Modena area which believe in the principles and values of Corporate Social Responsibility was established by public deed on 30 September 2014 with Florim as a founding member Florim hosts the associations member companies every year to discuss the various topics proposed
Premio Lucchese
The Premio Lucchese presented for the twenty-ninth time in 2016 was established in memory of Giovanni Lucchese and consists of scholarships awarded to students at the ldquoAlessandro Voltardquo Technical High School in Sassuolo who graduate with full marks The award ceremony held every year at the Florim Gallery in association with Societagrave Ceramica Italiana of Bologna includes a talk given by a leading personality on a topic of current interest to an audience of eager young listeners
Intrapresaelig Collezione Guggenheim
As befits a company that combines the values of its local community and historic and artistic heritage with a flair for research and innovation Florim recently launched a partnership with the Peggy Guggenheim Collection Since its foundation Florim has always had a unique ability to incorporate the true cultural significance of its industry in its business model and by this project once again confirms its commitment to promoting art by supporting a collection of extraordinary beauty
Fondazione Ing Giovanni Lucchese
More than thirty years after the untimely death of Giovanni Lucchese ndash founder of what was then Floor Gres currently Florim ndash in 2013 his family established a Foundation in his name which since then has funded organizations and associations that support families in need in the ceramics district The Foundation also supports a variety of projects such as the summer play scheme for employees children the Premio Lucchese and the Florim HealthampTraining Center described in more detail below
The main projects undertaken in 2016 include the funding of the purchase of 10 defibrillators for the Municipality of Fiorano and the contributions made to the purchase of paediatric ambulances for the local area and to support the Parish charitable organizations and social services in the district
Watch the Premio Lucchese video
The project run jointly by Florim and Sassuolo Hospital adopts a completely new model combining industrial culture and healthcare in an original way to benefit the local people and community thanks to the coming-together of a ceramic coverings manufacturer and the public-private joint venture Ospedale di Sassuolo Spa Florim HealthampTraining is the synthesis of this idea an experimental center which promotes local training for healthcare and other staff health education and information advanced medical simulation and research
The Center
On the main Florim site and opened on 16 April 2014 the Center is 550 square meters in area and contains a modular lecture theatre able to seat over 100 people and a number of classrooms for seminars and lessons At its heart is a state-of-the-art control room crammed with technology that operates dummies capable of reproducing human functions of all kinds Advanced simulation is a major aid to maintaining the skills of emergency healthcare workers with a particular focus on pediatric and neonatal resuscitation
Health meetings
Designed as a space for community use the Center also aims to become a place where all sections of the population - workers schoolchildren parents teachers volunteers and even just members of the public - can learn about preventive health care and acquire first aid skills After the distribution to Florim employees of a questionnaire surveying their training needs and preferences a Center Scientific Committee of Sassuolo Hospital medical personnel was appointed and drew up a plan of bi-monthly ldquoHealth meetingsrdquo All meetings are led by doctors with expertise in the various topics who answer the many questions from the audience at the end of their talks Between its opening and the end of December 2016 the Center hosted 13 meetings on a variety of topics attended by about 1000 people including employees their family members and the community at large
Healthcare discounts for Florim employees
The project also includes a major welfare program for all Florim employees and their family members entitling them to discounts and shorter waiting times for specialist examinations and outpatient diagnostic tests performed on a private basis
American Heart Association
The world-famous American Heart Association (AHA) is the oldest and most respected American voluntary organization dedicated to the fight against cardiovascular diseases and strokes In 2015 the AHA via the Simaid International Training Center named the Florim HealthampTraining Center as an Authorized Training Site for basic and advanced cardiopulmonary resuscitation
Florim HealthampTraining Center
2016 Sustainability Report
Watch the Health amp Training Center video
2016 Sustainability Report32
Product Responsibility
Here we summarize the concept of Made in Florim denoting a product that encapsulates the companys core values passion innovation a constant commitment to improvement and corporate social responsibility
Florim product certifications
CE Marking guarantees the user that the materials purchased meet the requirements of the relevant regulations and that the characteristics concerned are virtually unchanged for all production lots It is a declaration of conformity which protects the consumerrsquos safety The presence of the CE Marking on packaging guarantees that Florim products comply with the relevant regulatory requirements
Ecolabel (EC Regulation 662010) is a certification granted to products which comply with ecological and performance criteria set at a European level concerning raw material extraction supplier selection manufacturing processes packaging distribution use and disposal The certified Florim collections are Architech Ecotech Reverse Walks 10 by Floor Gres and Pietra del Nord under the Rex brand
Several ceramic tile collections bearing the Florim brands have earned certification from Bureau Veritas for their pre-consumer recycled material content These articles are therefore fully eco-compatible and can meet the environmental sustainability requirements imposed by many international certifications
Florim is a member of the US Green Building Council (USGBC) the most important association which promotes the reduction of buildings negative impact on the environment To allow the effective monitoring a projects level of sustainability the USGBC has developed a certification procedure for the development of sustainable buildings which assess and certifies the sustainability of a building in its entirety Florim materials are able to help to gain LEED points in a number of areas (data available on the Florim brand websites)
Florim has achieved the prestigious Greenguard certification for all its products Issued by the American body UL Environment this certification aims to reduce indoor pollution caused by interior design systems and materials UL Environment thus aims to protect health by improving air quality and reducing peoples exposure to chemicals and other pollutants Florim has also achieved Greenguard Gold Certification which imposes even stricter limits to confirm that a given product is suitable for use even in locations such as schools and health care facilities
The EPD or Environmental Product Declaration is a document which defines the environmental impacts arising from production In 2016 Florim participated in the study - certified by the German organization IBU - performed on the ceramics industry average data which aims to raise international awareness of the excellence of the environmental standards achieved
Beyond the standardsMade in Florim products are a guarantee of safety highly innovative content and eco-friendliness The people who produce them work in a safe place and in ethically sustainable conditions Due to their nature all Florim products are guaranteed free from pollutant emissions do not accumulate electrostatic charges are frostproof and completely inert and are undamaged by contact with flames The Groups Internet sites and collection catalogues contain the technical data sheets which detail the product information (slip-resistance breaking strain abrasion resistance etc) for every collection as well as its recycled material content with the relative certificates
During the period under consideration no banned products were placed on the market and the company was not found guilty of any breaches of the law with regard to data protection or its marketing and communication activities
EU Ecolabel nr IT2104
2016 Sustainability Report 33
Quality SystemThe current ISO 9001 standards define quality as the ability to satisfy explicit or implicit needs via a product or a service A Quality System implies constant improvement of company processes in order to realise products that always satisfy the customerrsquos needs Further to the 2016 audit Florim obtained the renewal of its UNI EN ISO 90012015 certification for the design manufacture and sale of all categories of ceramic tile
Objective Indicator 2012 2013 2014 2015 2016
Continual improvement of control of the production process
Percentage of First Grade Product ()
924 943 942 952 956
Quality rate () 883 905 903 905 909
Scrap rate () 44 41 42 42 49
Productivity (sq mhour) 186 188 186 190 200
Improvements in sales performance and customer satisfaction
Innovation rate () 330 296 367 455 364
Coverage () 795 714 814 813 816
Total portfolio shippable within one month ()
911 837 888 893 897
Optimization of range and stocks
Obsolete stock () 172 126 165 120 69
Stock turnover rate () 13 15 16 15 16
Gradual elimination of disputes complaints and claims concerning service
Square meters affected by complaints ()
17 12 08 12 09
Complaints by number of order items ()
10 11 11 10 10
Gradual improvement in staff skill levels
Employee turnover () 15 23 04 04 12
KeyPercentage of first grade product percentage ratio between the square meters of first grade products and the total square meters transferred to stockQuality rate percentage ratio between the square meters of first grade product transferred to stock and the square meters leaving the pressesScrap rate percentage difference between square meters of material leaving the presses and square meters of product actually transferred to stockProductivity ratio between the square meters transferred to stock and the total hours worked in the plantInnovation rate ratio between square meters sold belonging to series designed in the last three years and total square meters sold Florim uses this indicator to assess the effectiveness of its design process in terms of salesCoverage percentage ratio between square meters available for immediate shipment and the square meters on orderTotal portfolio of orders shippable within one month percentage ratio between the square meters which can be shipped in 30 days and the square meters on orderObsolete stock percentage ratio between the square meters of substandard discontinued produce and the total square meters in stock Stock turnover rate ratio between the square meters sold and the square meters in stockSquare meters affected by complaints percentage ratio between the square meters affected by complaints and the square meters soldComplaints by number of order items percentage ratio between the number of complaints and the number of items orderedEmployee turnover percentage ratio between the number of employees leaving the company and being replaced and the workforce at the start of the year
2016 Sustainability Report34
Casamood - Neutra 60 Collection
2016 Sustainability Report 35
OUR COMMITMENTS
The promises we keptIn our last Sustainability Report we committed to achieving a large number of objectives the following are the outcomes we attained
Relaunch of the ldquoCEDIT ndash Ceramiche drsquoItaliardquo brand OBJECTIVE ACHIEVED
Launch of the FLORIM stone brand OBJECTIVE ACHIEVED
Installation of a new latest-generation kiln at the Mordano plant OBJECTIVE ACHIEVED
Transfer of the Moscow showroom to new premises SCHEDULED FOR 2017
Creation of a new gatehouse at the Mordano plantOBJECTIVE POSTPONED TO GIVE PRIORITY TO THE CONSTRUCTION OF THE NEW FACTORY
Introduction of ERP system at Florim USA OBJECTIVE ACHIEVED
Installation of a new spray dryer and raw material handling system at Florim USA
OBJECTIVE ACHIEVED
Economic Responsibility
Renewal of certification of the Florim environmental and energy management system
OBJECTIVE ACHIEVED
Award of new certifications for collections manufactured with a high recycled material content
OBJECTIVE ACHIEVED
Continuation of work to reduce environmental impacts at Mordano especially with the reduction of energy costs
OBJECTIVE ACHIEVED
Continuation of the work to remove asbestos cement roofing materials at the Mordano plant
OBJECTIVE ACHIEVED
Expansion of the system which conveys rainwater to the treatment plant OBJECTIVE ACHIEVED
Reduction of the noise emissions of the air filtering systems OBJECTIVE ACHIEVED
Increase of recycling targets through constant awareness-raising amongst all staff and optimisation of recycling facilities
OBJECTIVE ACHIEVED
Continuation of replacement of the diesel forklift trucks for use on outdoor yards with electric vehicles
OBJECTIVE ACHIEVED
Environmental Responsibility
Running of fourth edition of Master Florim course with new procedures OBJECTIVE ACHIEVED
Creation of an internal refreshment area for the Fiorano office staff OBJECTIVE ACHIEVED
Improvement of corporate welfare through the activation of new free services and discounts tailored to employees needs
OBJECTIVE ACHIEVED
Continuation of the health meetings for the local community in association with Ospedale di Sassuolo Spa
OBJECTIVE ACHIEVED
Organization of new community events at Florim Gallery OBJECTIVE ACHIEVED
Organization of Florim Family Day 2016 A PARTY WAS ORGANISED FOR EMPLOYEES
Social Responsibility
2016 Sustainability Report36
The targets we set for ourselvesWe aim to achieve the following objectives in 2017
Economic Responsibility
Construction of a new factory at Mordano to produce large slabs
Launch of the project to unite the Florim spa sales organizations
Total restyling of the corporate and brand Internet sites
Launch of the HUB project - Intranet CRM Marketing Automation
New plants at Florim USA a press two sorting lines a polishing and rectifying line
New working spaces and cloakrooms for technical staff at the American plant
Environmental Responsibility
Purchase of a new cogenerator for the Mordano plant
Introduction of a new rainwater collection system at Fiorano
Land reclamation project involving covering of the Rio Spezzano stream at Fiorano
Implementation of new software for continual monitoring of energy impacts at Fiorano
Modernisation of the compressor room to improve energy impacts at Mordano
Increase of recycling targets through constant awareness-raising amongst all staff and optimisation of recycling facilities
Continuation of replacement of the diesel forklift trucks for use on outdoor yards with electric vehicles
Social Responsibility
Improvement of corporate welfare through the activation of new free services and discounts tailored to employees needs
Continuation of the health meetings for the local community in association with Ospedale di Sassuolo Spa
Organization of new community events at Florim Gallery
Organization of a new event for Florim spa employees
New offices for hospitality and events staff at Fiorano
2016 Sustainability Report 37
FLORIM USA
Profile and Economic ResponsibilityFlorim USA with registered office at Clarksville - Tennessee - and its subsidiary Florim Solution Inc have been part of the Florim Group since 2000 The Florim USA manufacturing plant one of the largest most technologically advanced in the United States produces porcelain stoneware tiles for the residential market and undertakes commercial projects in North America During the last few years Florim USA has implemented a growth and process optimization strategy which has generated significant technological progress with more innovations planned for the future The strategy adopted will put Florim USA at the worldwide state of the art in porcelain stoneware tile manufacture
In 2016 of the 18 million USD invested 147 was allocated for installation of a latest-generation raw material handling system and a large spray-dryer with an innovative sorting system Improvements were made to other parts of the process to increase their efficiency leading to a further reduction in emissions and scrap rates Additional investments are planned during 2017 to continue this dual trend of rising production with mitigation of environmental impact
The new Florim Flagship Store in New York (152 Madison Avenue 32nd Street)
2016 Sustainability Report38
Environmental ResponsibilityFlorim USA implements the same environmental policy as Florim and is committed to achieving the following objectives
bull reduction of the energy used in the production processbull improvement of the waste management process with a focus on recovery and reusebull introduction of new more eco-efficient technologiesbull adoption of integrated management systems
Florim USA has been pursuing a strategy of careful management of its operations and environmental impact for a number of years Here we summarise the main actions taken and the results achieved in 2016
bull installation of a latest-generation spray-dryer in 2016bull installation of an innovative raw material handling system in 2016bull 100 recycling of wastewater within the processbull optimisation of the management of water bottles with elimination of about 34200 of them per annumbull reuse of almost all production scrap (+99)bull 157000 kg of cardboard recycled in 2016bull award of two different types of product certificationbull 9300 kg of plastic recycledbull recycling of 17 complete trucks of pallets
Environmental Projects and Awards
Florim USA has received Clarksville Montgomery County Green Certification (CMCGC) CMCGC is a program designed to help companies learn and implement best practices in the area of environmental stewardship to sustain the local communityrsquos resources through a series of free workshops taught by local environmental specialists Since 2014 Florim has allocated some of its Environment Managers time for the running of these workshopsFlorim USA earned this green company certification thanks to a large number of projects first and foremost the one which eliminated the use of disposable water bottles replaced with individual reusable bottles provided by the company and a series of fill-up stations About 34200 bottles are removed from the waste cycle every year
During the latest phase of its plant optimization Florim USA has implemented a thorough construction material reuse policy In the various stages of demolition of the old plants including the old storage silos the concrete debris was recovered and reused in other construction worksThis project alone generated 11500 tons of recycled aggregate as well as several hundred tonnes of metal sold to a recycling firm
Environmental management system and eco-compatible products
Florim USArsquos products help builders and designers to meet the requirements for sustainable buildings as defined by the United States Green Building Council (USGBC) through the LEED Green Building Rating System This protocol evaluates and certifies the environmental sustainability of a building as a unit from its design to its day to day management To gain LEED credits many of the Florim USA product lines contain a significant percentage of recycled material (40 or more)This feature contributes to an increase in the LEED score in the projects where these products are installed In 2014 Florim USA together with a large number of other US tile manufacturers and the Tile Council of North America drew up a type III environmental product declaration (EPD) certified under the ISO 14025 standard This ceramic tile life-cycle analysis enables Florim USA products to gain LEED points under the new LEED v4 protocol
2016 Sustainability Report 39
Water use (gallonsper million square feetof finished tiles)
208137 216246 204962 195280 194268
Energy use
2012 2013 2014 2015 2016
Cubic feet of natural gas per million square feet of finished tiles 9343383 9149721 8331170 8390503 8380000
kWh per million square feet of finished tiles 510972 491171 450594 465976 490300
Emissions
Particulate material lt 21024 tonnes per annum
SO2 (sulphur dioxide) lt 1674 tonnes per annum
VOC (volatile organic compounds) lt 1245 tonnes per annum
NOx (oxides of nitrogen) lt 1501 tonnes per annum
Environmental performance indicators ndash summary
The following are the main environmental indicators related to the impact and performance of Florim USA during 2016
Pre-consumer recycled material
Its internal material recycling processes enable the company to minimise its environmental impact since most of the material which would otherwise be sent to landfills or other waste treatment centers is reusedbull Wastewater is entirely recycled within the production process without any discharge into the municipal drainsbull The material in the collection bags from the tile body and glaze preparation areas the press and glaze application is entirely recycled within the processbull All scrap fired tiles are entirely recycled within the processbull 157000 kg of cardboard was sold to an external recycled material dealerbull 17 trucks of unusable wooden pallets were sold to a pallet regeneration companybull About 9300 kg of waste shrink-wrap plastic film was recovered and recycled
Post-consumer recycled material
About 82000 kg of glass was removed from the flow of waste destined for the local landfill and recycled within the process Florim USA has signed an agreement with the local landfill for consignment of all the glass it handles which is collected and set aside for recycling
Water use disposal and reuse
The water used during the production process is recycled continually therefore no water is discharged into the municipal drains
The 2016 emissions figures are in line with those for previous years well below the standards laid down
Water use 2012 2013 2014 2015 2016
Water use (gallons per million square feet of finished tiles) 216246 204962 195280 194268 203928
2016 Sustainability Report40
Social Responsibility
Employees
The Florim USA workforce comprises 348 staff employed at the production site the Clarksville and Nashville outlet stores and the Florim Solution offices Of the 348 employees 273 are blue-collar workers and 75 office staff 5 employees are Italians on secondment to the United States Florim USA offers a number of benefits to full time employeesbull health and dental care insurancebull Vision insurancebull life insurance for employees and optionally for family membersbull temporary and permanent disability supportbull employee pension plan
2012 2013 2014 2015 2016
Workplace injuries 50 41 22 29 27
The Employee Assistance Program (EAP) also offers support to employees and their families in the event of psychological difficulty or other problems that can have a negative impact on their quality of life Florim USA supports all the costs of the program
Equal opportunities
Florim USA provides equal opportunities in all employment practices to all qualified employees and applicants regardless of race colour religion gender national origin age disability or membership of the armed forces or any other category protected by federal state or local laws
Health and safety
FLORIM USA is committed to ensuring a safe healthy workplace for all employees It therefore replaces old and obsolete equipment with new technologically more modern machinery and updates safety plans as new information gradually becomes availableAs well as an internal supervisor Florim USA has also appointed a health and safety committee which constantly monitors the plans effectiveness and makes any changes requiredThere are currently 20 plant employees who hold CPRfirst aid qualifications They occupy a variety of positions and work different shifts within the plant and have volunteered to attend training courses sponsored by the company for the award of these qualifications
Training
In 2016 every Florim USA employee attended an average of about 25 hours of training The training provided covered the operating procedures for the new equipment the main safety plans and the procedures for use of existing equipment for new employeesAll new staff undergo specific training for their department focusing on the safety-related aspects of the department concerned as well as more generalized safety training
Some of these themes includebull safe correct use of forklift trucksbull training on work in confined spacesbull shutdownwarning procedures and safe electrical practicesbull safe lifting procedures
2016 Sustainability Report 41
Florim USA ndash (Clarksville Tennessee)
For employees wishing to continue their education Florim USA offers assistance through the Educational Assistance Program It provides aid with the cost of education and textbooks and is available for any employee wishing to study for a technical qualification a diploma or a degreeThe plant staff training and education plan also includes various training schemes at Florim Italy where employees are instructed in the use of new equipment before it is installed at the American plantThroughout 2016 Florim USA will continue to provide a free e-learning course on its website for architects engineers and contractors (AEC) to improve their knowledge of sustainable porcelain stoneware tiles
Employee welfare activities
Florim USA employee picnic - In 2016 the company once again held its annual picnic for employees offering them a wide variety of foods games activities and live shows in an event which provided an unforgettable days enjoyment Within the event participants received prizes in the form of vouchers and gifts
Employee anniversary dinner - 2016 again saw the usual dinner to honour Florim USA employees with 5 10 15 20 or more years of service A special evening event was held in the presence of the Chairman and the other managers to celebrate the loyalty and hard work these employees have contributed during their careers with the firm
2016 Sustainability Report42
Local Community
During 2016 Florim USA continued to provide its support to a number of projects in its local areaSome of the main projects include
Scholarships - As part of its work to support the local community Florim has an established scheme which awards scholarships to deserving students at the Austin Peay State University in memory of Florim Group founder Giovanni Lucchese In December 2016 a delegation of Florim representatives attended a scholarship presentation lunch at the Austin Peay State University hosted by the President of the University
Montgomery County Green Certification Program - Florim USA staff actively participate in the Montgomery County Green Certification Program which aims to help companies learn and implement best practices with regard to safeguarding the environment and environmental resources
Donations - In 2016 the company again made a large number of donationsbull book collection for the Austin Peay State University Employees made a generous donation of used books in good condition for children and young people of the APSU in the hope of further promoting the education of future generationsbull to Community Cares the national organization that promotes the acceptance and social inclusion of individuals with Downs Syndromebull to the Aspire Clarksville Foundation a 501(c)(3) charitable foundation whose mission is to continuously improve the economy and the livability (quality of life) of the community by attracting significant capital investment and expansion by businesses and corporations thereby creating better opportunities and higher paying jobs for residentsbull to the Alzheimerrsquos Association a non-profit voluntary organization dedicated to the care and support of Alzheimers Disease sufferers and research into the condition Its aim is to eliminate the disease through the advancement of research to provide and enhance care and support for all affected and to reduce the risk of dementia through the promotion of brain health
Other activities - Every year Florim USA participates in the United Way Drive initiative to support local non-profit organizations which provide economic assistance and psychological support to persons in difficulty
Florim USA provides regular support to the Salvation Army by collecting canned foods for persons in needIn 2016 the company again organised a canned food collection for Manna Cafeacute in Clarksville TN Manna Cafeacute is a local non-profit organization based in Middle Tennessee with the primary mission of meeting peoples fundamental need for food before encouraging them to permanently change their lives for the better More than 15 of the population in Montgomery County are affected by food insecurity (about 28000 people) The percentage of children affected is about 215 a third of whom are excluded by income from federal programs such as free school mealsFinally donations were made tobull American Lung Association the leading organization working to save lives by improving lung health and preventing lung disease through research and educationbull Cheer for a Cure an organization that gives money directly to afflicting families who have a loved one suffering from cancer and need assistance to alleviate the added financial stressbull Habitat for Humanity Since 1992 Habitat for Humanity in Montgomery County Tennessee has worked with 93 low-income families with more than 210 children to revitalise various parts of Clarksville-Montgomery County by building new homes
2016 Sustainability Report 43
Quality SystemFlorim USA works under a Quality System certified to UNI EN ISO 9001 standards The following are some of the figures in brief
Objective Indicator 2012 2013 2014 2015 2016
Optimisation of control of the production process
Percentage of First Grade Product ()
932 917 940 949 9510
Quality rate () 883 857 893 906 909
Scrap rate () 56 65 48 45 45
KeyPercentage of first grade product ratio between square feet of first grade material and total square feet transferred to stockQuality rate ratio between square feet of first grade material transferred to stock and square feet pressedScrap rate ratio between square feet pressed and square feet of product actually transferred to stock
Other ActivitiesFlorim USA and trade shows
In 2016 Florim USA participated at a number of shows and events including Coverings the AIA Tennessee Convention Hardscape North America Total Solutions Plus Neocon International Pool - Spa and Patio Expo These events targeted at the various categories of industry professionals such as dealers and designers gave Florim USA the opportunity to present its new range of indoor and outdoor products
Design Center
In December 2015 Florim USA opened a design center showroom in Nashville (TN) in a strategic location close to the airport and the city center With a spacious area to host individual CEU presentations and workshops this design center has the potential to be a major resource for local architects In 2016 it was also awarded the ldquoOutstanding Boothrdquo booth prize at the 33rd edition of the Annual Home Decorating and Remodeling Show The location is the ideal place for sharing ideas finding inspiration and putting professionals and architects in touch with each other
Florim Nashville Design Center
2016 Sustainability Report44
GRI International Sustainability Indicators SDGsThe information below illustrates the correspondence between the Florim (Italian companies) 2016 Sustainability Report the GRI-G4 guidelines and the icons of the Sustainable Development Goals (SDGs) definitively adopted by the United NationsA description of the SDGs is available at wwwglobalcompactnetworkorg
GRI indicators
Description Page Reference to SDGs
1 Strategy and Analysis
G4-1 Statement from the most senior decision-maker of the organization 5
2 Organization profile
G4-3 Name of the organization 2
G4-4 Primary brands products andor services 9
G4-5 Location of the organizations headquarters 9
G4-6 Number and names of the countries where the organization operates 9
G4-7 Nature of ownership and legal form 14
G4-8 Markets served 9
G4-9 Scale of the organization 8 8
G4-10 Significant changes regarding size structure or ownership 8
G4-11 Employees covered by National Collective Bargaining Agreement 27
G4-12 Describe the supply chain 16
G4-13Significant changes regarding the organizationrsquos size structure ownership or its supply chain
Reporting process
launched
G4-14 Precautionary principle 22
G4-15 List of external commitments in which the company is involved 22 32 33
G4-16 Associations or interest groups in which the company is involvedwwwflorimit gt
about us gt partnerships
3 Identified material aspects and boundaries
G4-18 Process used to define the report content 6
G4-19 Material aspects 16
G4-20 Boundaries of each material aspect 6
G4-21 Boundaries of each material aspect outside the organizationPartial reporting
(pages 6 16)
G4-22 Explanation of the effect of any restatements of information provided in previous reports 6
G4-23Significant changes from previous reporting periods in the scope boundaries or measurement methods
6
3 Stakeholder engagement
G4-24 List of stakeholders 15
G4-25 Identification of stakeholders 15
G4-26 Stakeholder engagement 6 16
G4-27 Key topics and concerns that have been raised through stakeholder engagement 16
4 Boundary of the Report
G4-28 Reporting period 6
G4-29 Date of publication 2
G4-30 Reporting cycle 6
G4-31 Contacts and addresses for additional information 46
5 GRI Content Index
G4-32 Reporting option chosen 6 7
G4-33 External assurance of ReportThe Report is not
externally assured
2016 Sustainability Report 45
GRI indicators
Description Page Reference to SDGs
6 Governance
G4-34 Governance structure 14
7 Ethics and integrity
G4-56 Values principles standards and norms of behavior 13 16
Economic performance indicators
EC1 Direct economic value generated and distributed 19 25789
EC5 Wages 27 158
EC7 Development and impact of infrastructure investments and services supported 23 24 31 257911
Environmental performance indicators
G4-EN2 Percentage of materials used that are recycled input materials 17 22 23 812
G4-EN3 Energy consumption within the organization 24 781213
G4-EN6 Reduction of energy consumption 17 24 71213
G4-EN7 Reductions in energy requirements of products and servicesPartial reporting
(page 22)71213
G4-EN8 Total water withdrawal by source 17 23 6
G4-EN10 Percentage and total volume of water recycled and reused 17 21 23 612
G4-EN11 Biodiversity 23 615
G4-EN15 Total indirect greenhouse gas emissions by weight 25 3121315
G4-EN16 Total indirect greenhouse gas emissions by weight 25 3121315
G4-EN19 Reduction of greenhouse gas emissions 8 24 1315
G4-EN21 NOx SOx and other significant air emissions 25 31215
G4-EN22 Total water discharge by quality and destination 23 6
G4-EN23 Total weight of waste by type 17 22 3612
G4-EN27 Impact mitigation of environmental impacts of products and services 23 68121315
G4-EN29 Monetary value of significant fines 22 16
G4-EN30 Significant environmental impacts of transporting products and goodsmaterialsPartial reporting
(page 25)111213
Social performance indicators
G4-LA1 Total number and rates of new employee hires and employee turnoverPartial reporting
(pages 17 27)8
G4-LA6 Workplace injury ratesPartial reporting
(page 17)38
G4-LA9 Average hours of training per year per employee 28 48
G4-LA12Composition of governance bodies and breakdown of employees according to gender age group etc
27 58
G4-LA13 Ratio of basic salary and total remuneration of women to men 27 5810
Society
G4-SO1 Operations with local community engagement 12 31 16
G4-SO3 Operations assessed for risks related to corruptionPartial reporting
(page 13)
Product responsibility
G4-PR1 Assessment of health and safety impacts for improvement 23 32
G4-PR3 Type of information about products and services required by the procedures 32 12
G4-PR5 Proceedings relating to customer satisfaction including surveys conducted to measure it 33
G4-PR6 Sale of banned or disputed products 32
G4-PR8 Number of substantiated complaints regarding breaches of privacy 32 16
2016 Sustainability Report46
Your Assessment
You are kindly requested to take a few minutes of your time to give us your assessment and any suggestions to enable us to improve future editions of our Sustainability Report
Click here to send us your feedback
To keep up to date with our business
Spazio CEDIT - interior (Milan)
wwwflorimiten
Florim Ceramiche
Florim4Architects
Florim_ceramiche
Florim Ceramiche spa
Florim Ceramiche
Florim Ceramiche
For any further information please feel free to contact our communications department comunicazioneflorimit
2016 Sustainability Report 47
Premio Lucchese - Florim Gallery (Fiorano Modenese - Modena Italy)
Intrapresaelig Guggenheim Collection - Massimo Bottura in Florim Gallery (Fiorano Modenese - Modena Italy)
Panathlon Christmas Gala - Florim Gallery (Fiorano Modenese - Modena Italy)
2016 Sustainability Report48
White Christmas Party - Florim Gallery (Fiorano Modenese - Modena Italy)
Cersaie - Mario Biondi in Florim Gallery (Fiorano Modenese - Modena Italy)
Dal buio alla luce - Social event at Florim Gallery (Fiorano Modenese - Modena Italy)
2016 Sustainability Report 49
Florim Gallery entrance (Fiorano Modenese - MO)
2016 Sustainability Report52
Florim Ceramiche spaVia Canaletto 24 - 41042 Fiorano Modenese (Modena Italy) - Tel +39 0536 840111 - wwwflorimit
2016 Sustainability Report 13
GOVERNANCE
Code of EthicsThe groups governance plays a central role in the responsible development of its business ensuring ethical transparent management of its operations with its stakeholders interests always in mind
After approving the Governance Model compliant with the provisions of Italian Legislative Decree 2312001 the Florim Board of Directors signed and promoted the corporate Code of Ethics (revised in June 2016) which has become an integral part of Florims business and is accepted by every new employee supplier and agentTo guarantee the application of and compliance with its contents a Supervisory Board was established to detect any breaches of its provisions All stakeholders can also contact the Supervisory Board (organismodivigilanzaflorimit) for further explanations regarding the interpretation and application of the corporate Code of Ethics as described on the corporate websiteThe following is an extract from the rules of conduct which govern the way we do business
Our mission
To manufacture ceramic tiles and materials for multiple uses and offer the most appropriate solutions for both interior design and architecture To constantly prioritise environmental sustainability attempting to satisfy the needs of customers and to create value for shareholders employees and the local community in compliance with the ethical principles and rules of conduct set out in the Code of Ethics
Our vision
To be at the cutting edge of technical and design innovation in ceramics by developing materials and production methods that position us as a constant benchmark for customers architects and competitors
Our values
Honesty and Respect all internal and external relationships must be based on honesty and respect for rules and dignity of the individual
Corporate Social Responsibility corporate social responsibility must be promoted through measures and practices adopted to support the local environment and community
Individual Responsibility everyone must be aware of the worth and consequences of their own actions
Quality and Innovation excellence must be pursued by improving products processes and skills to promote corporate success
Transparency intentions and positions must be expressed openly and clearly without misunderstandings or misrepresentation to build lasting relationships based on trust both inside and outside the company
Courage a moral strength which enables us to undertake and deal with changes difficulties and challenges to benefit from all the opportunities they offer
Feeling of Belonging feeling proud to be a part of one big team made up of the company associates customers and suppliers
Management System Policy
To achieve greater and greater transparency in its reporting the company has drawn up guidelines for its quality environment safety and energy management system Read more
2016 Sustainability Report14
Corporate BodiesFlorim Ceramiche spa is a family-run business with fully subscribed paid-up share capital consisting of 50000000 ordinary shares with a face value of 1 Euro each The capital is 100 owned by the holding company FinFloor spa with registered office in Fiorano Modenese which is in turn indirectly owned by the Lucchese family through Fin-Twin spa
The Board of Directors has 11 members
CLAUDIO LUCCHESE Chairman
DONATO BRUNI Deputy Chairman
MARIADELE LUCCHESE Director
ANNA LUCCHESE Director
FRANCESCA LUCCHESE Director
GIOVANNI LUCCHESE Director
The Board of Directors has a mandate of one year and new elections will coincide with the approval of the financial statements The Board of Statutory Auditors is composed of three members whose term of office is three years from their appointment on 1252016 until approval of the 2018 financial statements The financial statements of Florim spa and the consolidated financial statements of FinFloor spa and Fin-Twin spa are audited and certified by Deloitte spa
Corporate StructureThe changes to be noted since the previous financial statements include the incorporation of ldquoMordano 4 srlrdquo and amalgamation by acquisition of Maker srl in Florim Ceramiche spa
KRONOS 2 CERAMICHE spaShare capital euro 1646799
Fondazione Ing G LuccheseEndowment euro 60000
FABBRICA delle MATERIE srlShare capital euro 10000
EDIL FLOOR surlShare capital euro 9812681
ISABELLA srlShare capital euro 100000
FI HOLDING IncShare capital USD 50000
100
10
100
30
9667
100
1
1
99
99
100
FIN TWIN spaShare capital euro 540800
FINFLOOR spaShare capital euro 10500000
542810
FLORIM CERAMICHE spasingle shareholder companyShare capital euro 50000000
100
FLORIM BRASIL LtdaDISTRIBUICcedilAtildeO DE CERAcircMICAS Ltda
Share capital R$ 46100000
FLORIM RUSShare Capital 100000 Roubles
FLORIM USA incShare capital USD 51865541
FLORIM SOLUTION IncShare capital USD 845943
100
MORDANO 4 srlShare capital euro 100000
85
FLORIM FAR EAST PTE LtdShare capital S$ 10000
100
ERMES GIUSEPPE FERRARI Managing Director
GIOVANNI GROSSI Managing Director
OSCAR ISEPPI Managing Director
DORVAN SAZZI Managing Director
STEFANO TORRENTI Managing Director
2016 Sustainability Report 15
StakeholdersStakeholders are all individuals and groups who may influence or be influenced by a companys operations in terms of policies products and working processes shareholders employees customers and consumers suppliers local government the local community banks and trade unions
Employees and Trade Unions
Florim makes the following commitments to its employees
bull to guarantee equal opportunities fair pay and professional growth
bull to reward its human resources on the basis of transparent meritocratic criteria
bull to create safe working environments and processes
bull to guarantee transparency and clarity in contract conditions
bull to encourage dialogue and internal communications
Customers and Consumers
In dealing with its (retail) customers Florim is committed to
bull creating a relationship of trust as a stable basis for business
bull guaranteeing clarity in contracts and prices
bull guaranteeing the reliability of its products and developing customer service
bull offering innovative safe environmentally sustainable products
bull providing a diversified offering with services with high value added
The overall aim is also to satisfy the expectations and demands of the final consumer
Developers Architects and Interior Designers
To meet the needs of developers Florim is committed to
bull offering state-of-the-art solutions in terms of environmentally sustainability technology and design
bull establishing and fostering relationships with partner professionals
bull providing consulting and technical experience from the project concept through to installation
bull supplying turnkey solutions
Local Communities and Local Government
In its relationships with local communities and local institutions Florim is committed to
bull guaranteeing dialogue cooperation and transparency
bull giving value back to the local communities in the areas where it operates
bull continually improving the environmental performances of processes
bull researching developing and using the most sustainable technologies
bull making an economic contribution to local sporting and social projects for children and young people
Suppliers
When selecting its suppliers Florim pays close attention to companiesrsquo CSR practices Florims relationships with its suppliers are based on compliance with the values of its code of ethics otherwise contracts are automatically terminated Florim also guarantees certainty in payment times and compliance with contract terms provided the goods and services contracted are delivered as agreed
ERMES GIUSEPPE FERRARI Managing Director
GIOVANNI GROSSI Managing Director
OSCAR ISEPPI Managing Director
DORVAN SAZZI Managing Director
STEFANO TORRENTI Managing Director
2016 Sustainability Report16
Materiality ApproachIn 2015 the company began an internal analysis process based on the materiality principle in order to identify the sustainability issues of relevance both for the Group (including Florim USA) and for all stakeholders Materiality is the threshold above which a topic becomes sufficiently important to be included in the report In fact organizations are faced with a large number of topics on which they could report Relevant topics and indicators are those considered important for reflecting the organizations economic environmental and social impacts or which influence the decisions of its stakeholder and which therefore potentially merit inclusion in the report In accordance with the GRI ndash G4 Guidelines Florim has analyzed and identified relevant topics which were assessed by the working team which drafted the Sustainability Report on the basis of discussion with the main stakeholders The findings which emerged were supported by a qualitative survey external to the companys context examining an analysis of the press gallery (more than 650 articles) competitors Sustainability Reports the Emas Study of the Fiorano and Sassuolo Ceramics District and the GRI document ndash ldquoSustainability Topics for Sector What do Stakeholders want to knowrdquo
In the chart below the aspects found to be most important appear in the top right-hand corner and constitute a strategic priority for the Group The topics in the bottom left-hand corner such as biodiversity prevention of corruption and absence of discrimination are less relevant because they are easy for both the organization and stakeholders to manage and no problems have ever been reported over the years Similarly the protection of human rights is now taken for granted since Florim complies strictly with all the provisions of the National Employment Contract
Importance for stakeholders
Importance for Florim spa
low
m
ediu
m
high
low medium high
Biodiversity
Indirect economic impacts
Prevention of corruption
Market share
Absence of discrimination
Sustainable transport
management
Protection of Human Rights
Environment and safety
Water saving
Energy efficiencyRaw materials
Diversity and equal opportunities
Transparency of financial and other
information
Ethical supplier
management
Investments in the local community and social welfare
Direct and indirect environmental
impacts
Green products and
services
Economic performance
Quality of products offered to customers
Regulatory compliance
Development of human resources
and training
ENVIRONMENT
COMMUNITY
EMPLOYEESASSOCIATES
ECONOMIC PERFORMANCE
PRODUCT RESPONSIBILITY
HUMAN RIGHTS
2016 Sustainability Report 17
FinFloor consolidated (in thousands of Euro) 2012 2013 2014 2015 2016
Net earnings 315344 325853 329533 374094 406759
EBIDTA 59608 72986 84395 98115 107186
Operating result 35717 50996 58508 66255 71028
Gross cash flow 52710 68312 83274 97268 109148
Net profit 26103 35732 36433 43324 49347
Net financial indebtedness (127730) (96500) (54524) (27326) (12508)
Final inventory 95514 84432 90283 92795 96721
Net shareholders equity 186905 218847 276916 332721 369937
Total investments 32572 48780 41584 34215 53531
2012 2013 2014 2015 2016
Waste produced (t) 30228 21170 22300 30862 34423
Recycled third-party waste (t) 4028 4190 1721 2570 5627
Total water consumption (msup3) finished product (t) 075 075 078 069 071
Recycled water percentage 100 100 100 100 100
Self-generated energy in relation to consumption 67 68 62 65 75
Investments in environmental management (euro000) 13617 2493 1995 465 6400
2012 2013 2014 2015 2016
Number of employees at 3112 1037 992 984 982 987
Total number of training hours 14690 9124 9056 7176 10606
Number of training hours on environment and safety 7572 4514 4200 3008 2489
Number of workplace injuries 63 62 74 56 43
Environmental and social profile figures refer to Florim Italy for Florim USA please see the relevant section (from page 37)
REPORTING
In brief
Economic Profile
Environmental Profile
Social Profile
2016 Sustainability Report18
Economic Responsibility
Comments on 2016 Economic Data
The Groups 2016 results were again good from every point of view
Compared to the previous year turnover increased by 87 leading thanks to careful management of production costs to an EBITDA of Euro 1071 million equivalent to 263 of turnover and a profit after tax of Euro 493 million
The companys financial data also significantly improved with a net financial position of Euro 125 million compared to Euro 273 million at the end of 2015 in spite of record technical investments of Euro 535 million and financial investments of Euro 11 million
Once again underlying the results achieved were large investments in latest-generation machinery and technologies painstaking research to develop materials with exceptionally high technical and design content human resources and projects for the increasingly direct promotion of Florims image and quality standard
Investments
The technical investments made in 2016 amount to Euro 535 million while Euro 11 million was spent on reacquiring 100 ownership of Maker srl followed by its amalgamation with Florim spa on 31 December The most important industrial projects included the continuation of the work on the Mordano plant which involved investments of Euro 26 million for the restructuring of the raw material preparation area and the doubling of production capacity for traditional porcelain stonewareThe investments of US$ 18 million at Florim USA were utilised to complete the renewal of the raw material preparation area and construct a new building for the technical organizationFinally about 9 million Euro was invested at Fiorano on various production line modernization projects
A creative hub for design style and new trends Milan once again confirms that it is the ideal setting for Florims investments and the opening of the all-new ldquoSpazio CEDITrdquo confirms the companys determination to strengthen its bonds with design professionals working in high-end interior design The culture of beauty art architecture and design are all integral to the genetic make-up of CEDIT ndash the historic Italian brand relaunched by Florim in 2016 ndash and dominate the display areas and the first six ceramic covering collections styled by famous names on the contemporary creative sceneOn two levels with a total floor area of more than 200 msup2 the space maintains the same stylistic identity as the one at Fiorano Modenese since they are both constructed to an architectural design intended to be replicated in CEDIT customers showrooms worldwide
Spazio CEDIT Watch theinauguration video
2016 Sustainability Report 19
Economic Value Generated and Distributed
The figures for the economic value generated and distributed provide a simple clear explanation of how Florim has created wealth and redistributed it to its stakeholders The table below contains the data from Florims 2016 financial statements approved by the Board of Directors on 30 March and certified by external auditorsThe economic value directly generated is represented by the total earnings for 2016 while the economic value distributed includes the costs incurred for suppliers and employees payments to the state (taxes) and the donations which had positive repercussions for the community to which Florim spa belongs
Heading 2014 2015 2016
Revenues 253125 269855 302521
Direct economic value generated 253125 269855 302521
Operating costs 135735 150951 168809
Employee wages and benefits 56985 58149 62418
Payments to providers of capital 7413 6399 11903
Payments to government 15738 13162 15382
Community investments 221 212 240
Economic value distributed 216092 228873 258752
Economic value retained 37033 40982 43769
KeyRevenues net sales plus revenues from financial investments and sale of assetsOperating Costs payments to suppliers non-strategic investments royalties payment facilitationsEmployee wages and benefits employee wages and benefits per employees (current payments)Payments to providers of capital all payments to the organizations providers of capitalPayments to government gross taxes and dutiesCommunity investments voluntary donations and investments in the communityEconomic value retained calculated as economic value generated less economic value distributed
The data in the table are in thousands of Euro and refer to the consolidated financial statements of the Italian companies only
KBIS (USA) - detail of the stand created with ldquoI Classici di Rexrdquo
2016 Sustainability Report20
Casa dolce casa ndash Argille 20 Collection
2016 Sustainability Report 21
Environmental ResponsibilityEffective environmental policy management energy saving and emissions reduction are amongst Florims strategic sustainability objectives
Our green projects in figures
2 highly-regarded process certifications
ISO 14001 (ENVIRONMENT)and ISO 50001 (ENERGY)
849873 MWh is the amount of electricity the
company succeeded in producing in-house during 2016
2 departments (marketing and communications)
engaged on digitizing advertising tools
8462 tons of CO2 NOT emitted
CO2
100 is the percentage of wastewater recycled
16000 msup2of photovoltaic panels covering
an area of 30000 msup2
75 is the percentage of the electricity consumed which is
produced in-house
4 latest-generation industrial kilns installed in
the last 3 years
4 different types of environmental product
certification
2 cogeneration plants to increase energy saving
and efficiency
1 laboratory for the development of contemporary design projects with a specific focus on the materials green
content
100is the percentage recycling of
industrial greenware waste in the production process
2016 Sustainability Report22
Certifications
System and process certifications
UNI EN ISO 14001TUumlV has awarded Florim the highly-regarded UNI EN ISO 14001 voluntary certification which confirms its compliance with a series of internally certified procedures intended to improve the internal environmental management system The decision to seek this certification springs from the desire to reconcile quality with efficiency and productivity while protecting the environment and community in which the company operates
UNI EN ISO 50001Thanks to a careful energy management policy and aided by the latest investments in the production area also intended to improve energy efficiency Florim was the worlds first ceramics manufacturer to obtain ISO 50001 certification of its Energy Management System
In addition to its environmental certifications Florim has also been awarded prestigious AEO (Authorized Economic Operator) status
Further to a lengthy and demanding audit process by the Customs Authorities in 2016 Florim was awarded AEO certification the first company in the Province of Modena to receive this major form of approval Authorised Economic Operator status guarantees the companys absolute compliance with customs and security requirements in its foreign trade
Environmental Management
Waste 2012 2013 2014 2015 2016
Total waste produced (t) 30228 21170 22300 30862 34423
Non-dangerous recyclable waste (such as paper and cardboard fired scraps plastic glass and wood) ()
989 982 985 991 989
Non-dangerous disposed-of waste (such as the waste picked up by the motor sweepers) ()
02 04 02 02 02
Dangerous recyclable waste (such as spent oil batteries and monitors) ()
00 01 01 01 00
Dangerous disposed-of waste (such as spent lime) () 01 13 12 07 09
Third-party waste recycled within the production process (t) () 4028 4190 1721 2570 5627
Besides recycling greenware waste from its own production cycle (not included in the table because the amount cannot be calculated) Florim also recycles third party waste
Florims operations have always been oriented towards optimization of impact on the local community and environment Thanks to the work of its research laboratories the support of all staff and the recent investment plans tangible results have been achieved The data provided below reveal that in spite of an increase in production of 8 compared to the previous year consumption remains low The companys commitment to environmental protection is all-inclusive and also comprises a focus on the district within which it operates One example is the total removal of all asbestos cement from the Fiorano Modenese plant and the creation of the new recycling station opened in 2015 and donated to the Local Authority as a public serviceAs in previous years during 2016 Florim was not fined for any breaches of environmental regulations or laws
Florim recycles and optimises within the production process all greenware scraps dust residues from filters and sludge from the process and rectification wastewater treatment system The waste produced is detailed in the table the significant differences between years are due mainly to the major demolition and subsequent reconstruction works undertaken at the Italian plants
Waste Management
2016 Sustainability Report 23
Water Resources
No environmental impact of wastewater discharges is specified since all the water from the production cycle is completely reused (100) All other effluents comply with legal requirements
The figure states the total cubic meters of water used per ton of finished product The water used in the Fiorano production process is drawn from private company-owned wells with water from the public main only used for non-industrial purposes The Mordano plant is supplied by an industrial water main Water use is measured by means of meter readings Four highly innovative dry rectifying plants have gone into production at Mordano since 2015 enabling the company to eliminate the physicalchemical treatment of the water used in the rectification process
WATER USE
2012
08
2013
08
2014
08
2015
07Total water consumption (msup3) finished product (t)
07
2016
All packaging used for Florim materials is made from recycled paper and parts of the coverings used to protect pallets of finished products consist of recycled plastic Whats more all the packaging used (boxes cardboard shrink wraps pallets etc) can be completely recycled by the end user The latest investments made include new eco-friendly packaging machines increasing the number of these machines installed to 15 These plants completely eliminate waste due to leftover inventory saving significant amounts of cardboard
Packaging and Coverings
As the materiality assessment states Florim has no significant impacts on the biodiversity of its local area since the company is located inside the Fiorano Modenese ceramics manufacturing district at least 5 Km from the nearest nature reserve at Salse di Nirano Florim takes special care over the choice of the raw materials used for its tile body mixes of which it is required to provide documentation guaranteeing compliance with the European Directives protecting wild birds (EU Dir 79409EEC) and habitats (EU Dir 9243EEC) and the United Nations Convention on the protection of biodiversity It has also introduced a software program - used at the 3 production plants (Italy and the USA) - for the management of data on the origin of raw materials such as quarry location distance from the factory recycled content declaration technical safety and radioactive content data sheets and the expiry of the quarrying permit issued by the government
Raw Materials and Biodiversity
2016 Sustainability Report24
Energy Management
There is no disputing that large amounts of energy are required to power the production processes of ceramic tile plants with consequent direct and indirect impacts on the local area and the environmentThe main indicator used to measure plants energy performance is the mean specific total energy consumption (TEJ) measured in GJt of product transferred to stock As the table below shows this figure is obtained by adding together heat consumption (NGJ) and electricity used (EEJ)
Parameter ndash Definition Unit of measurement
2012 2013 2014 2015 2016
NGJ Mean specific natural gas consumption in relation to the unit of weight of finished product transferred to stock
GJt 557 571 576 578 598
EEJ Mean specific electricity consumption in relation to the unit of weight of product transferred to stock
GJt 111 108 111 108 107
TEJ Mean total specific energy consumption in relation to the unit of weight of product transferred to stock
GJt 668 679 686 685 705
Self-generated electricity as a proportion of consumption
67 68 62 65 75
With two cogeneration plants (for the combined in-house production of heat and electricity) and 16000 msup2 of photovoltaic panels the company certainly sets a new benchmark for the entire ceramic tile industry 2016 saw the replacement of the Fiorano turbine set (the main component of the cogeneration plant) while the one in Mordano was kept in operation 247 factors which led to a 10 increase in in-house electricity production in relation to consumption To provide a clearer idea of the scale of the achievement the amount of electricity the company generated in-house in 2016 (849873 MWh) would cover the average annual consumption of about 37000 households (With consumption per household of 229 MWh - data from the latest ISTAT survey in 2012ndash calculated on the Italian average)
Photovoltaic Plant
kWp kWh produced kg of CO2 not emitted
270021 15937250 8462680
Good Practice
The head office organizations are also optimizing paper and energy consumption In addition to issuing and distributing the energy saving handbook for its offices the company is also trying to maximize savings on the raw material used and specifically the use of paper Internally the company only purchases reams of paper which carry environmental certification and the paper used in offices is collected separately for proper disposal Externally the company distributes a system of merchandising products made mainly from recycled paper and encourages the gradual digitization of its marketing tools as well as publishing all its catalogues in digital format on its Internet sites Florim offers its distributor companies an innovative digital touch screen tool with the pdf versions of the catalogues and other tools for the final consumerIn 2016 Florim decided to adopt a new payslip distribution procedure introducing an online processing system As well as providing employees with new functions and greater operating flexibility thanks to this system the company no longer prints out the monthly payslips saving paper ink and energy The scheme initially involving all office workers has the ambitious target of also including the staff of the Fiorano and Mordano plants
The 16000 square meter photovoltaic plant received recognition from GSE (Energy Management Services) as one of the most innovative installations of its type and from its commissioning (October 2011) up to December 2016 it produced the following results
2016 Sustainability Report 25
Atmospheric Emissions
The industrial facility emits greenhouse gases basically CO2 from the following main sourcesbull combustion from the burning of fossil fuels (such as natural gas)bull processes from the minerals in the raw materials any organic matter in the clays used and any organic additives in tile body mixes
In order to comply with Directive 200387EC (ETS - Emission Trading Scheme) Florim has been reporting and certifying its CO2 emissions since 2013
CO2 emissions 2013 2014 2015 2016
CO2 emissions (t) 102728 103462 111862 132960
CO2 emissions (t) Finished product (t) 033 033 033 035
Emissions from the production cycle 2013 2014 2015 2016
Particulate material (gmsup2 finished product) 223 130 098 118
Lead (gmsup2 finished product) 000 000 000 000
Fluorine (gmsup2 finished product) 014 018 013 012
The increase in CO2 is due mainly to the large increase in the square meters produced (+ 8) and the 247 use of the cogeneration plant However it should be noted that the cogeneration plant provided a 10 increase in in-house electricity generation with lower CO2 emissions than electricity purchased from the grid produced mainly using fossil fuels (source ISPRA Fattori di emissione atmosferica di CO2 e sviluppo delle fonti rinnovabili nel settore elettrico Rapporti [Atmospheric CO2 Emission Factors and Development of Renewables in the Electricity Sector Reports] 2122015)The ratio between CO2 emissions and tons of finished product produced increased because in 2016 the sale of spray-dried material to other companies rose compared to the previous year (emissions from this phase are included in the emissions count but there is no corresponding output of finished product)
In a change from previous years the new GRI-G4 guidelines also require reporting of nitrogen oxide and sulphur oxide emissions Nitrogen oxide (NOx) emissions are within the limits permitted under the integrated environmental authorisation Sulphur oxide (SOx) emissions are not reported here since this figure is not required by the IEA
Transport
The materiality study reveals that transport is a significant factor for both stakeholders and Florim itself The company is not able to measure the impact of transportation of finished product on the local area since all shipments are ex-works However Florim which has been introducing electric vehicles to replace its oldest most obsolete unleaded petrol forklifts for years now has further optimized the handling of materials thanks to the new highly-automated logistics hub created at the via Canaletto location In 2016 about 53 of the vehicles used on the companys premises were electric with no direct greenhouse gas emissions
2016 Sustainability Report26
CEDIT ndash Creative Composition
2016 Sustainability Report 27
Workforce Composition
In 2016 the workforce included 27 people with disabilities 6 women and 21 menBearing in mind the job descriptions arising from the specific industrial sector the breakdown between men and women is in line with the industry average Male office workers and executives earn an average of 10 more than women for jobs of equal responsibility Among blue-collar workers the difference is 7 The company had a total of 29 foreign employees 24 at Fiorano and 5 at Mordano
Manager Executive Office worker
2013 2014 2015 2016 2013 2014 2015 2016 2013 2014 2015 2016
Women 2 3 3 3 3 1 1 1 137 142 133 149
Men 18 21 20 18 21 24 25 28 127 132 128 132
Total 20 24 23 21 24 25 26 29 264 274 261 281
Office ancillary Blue-collar worker Total
2013 2014 2015 2016 2013 2014 2015 2016 2013 2014 2015 2016
Women 18 16 25 19 226 219 212 196 385 381 375 368
Men 64 68 79 64 376 358 356 377 607 603 607 619
Total 82 84 104 83 602 577 568 573 992 984 982 987
Social Responsibility
Employees amp Corporate welfare
Its employees are the heart and soul of Florim they provide its character and its DNA Since 2009 when the current major economic crisis began Florim has undertaken a number of income support programs for its workforce Below we summarise some of the ongoing programmes and others run in 2016bull Ending of the Income Support Program for the Mordano plantbull Agreement with Sassuolo Hospital under which Florim employees and their family members enjoy discounts and shorter waiting times for specialist examinations and outpatient diagnostic tests performed on a private basisbull Special agreements with local health facilitiesbull Tax advice at special rates bull Special terms for banking services with financial consultants on-sitebull Discounts on the purchase of Florim products for employees homesbull Free entry to the Peggy Guggenheim Collection in Venice for employees and concessions for family membersbull Free provision of water and mineral salts in the plants during the summerbull Distribution of fuel vouchers to employees for the Christmas holidays
Summer Play Schemes and Cregraveches
In 2016 the summer play schemes for the children of employees at Fiorano and Mordano were continued for the fifth year in succession Seven different centers across the area between Modena and Bologna hosted 85 children (twice the number of the previous year) the company paid the fee for two weeks attendanceWhats more since 2013 the company has negotiated special terms with local cregraveches which now offer a number of places for employeesrsquo children at a reduced fee
2016 Sustainability Report28
Human Resources Management Policies
In July 2015 on renewal of the in-house supplement to the national employment contract the Management introduced a new phase in its relations with the Trade Unions with the aim of continuing and improving the good relationships enjoyed for decadesThe new company contract applied for all employees at the Fiorano headquarters includes more facilitations for part-time working the willingness to allow flexitime where feasible and the commitment to invest in staff training in order to generate full benefits from intellectual capital The company and the trades unions agreed on a plan to improve efficiency fundamental for maintaining the current level of competitiveness by establishing improvement in Production Efficiency and EBITDA as criteria for the payment of the new Performance Bonus The individual Attendance Score is considered together with these parameters The 2016 Performance Bonus in its first year of application was 20 higher than that paid in 2015 In addition in response to employees requests the Company increased the number of approved canteens extending the choice available and also introduced weekly laundering of work clothing for all production workersWith regard to applications for severance pay advances the Company confirms its commitment to continuing the policy implemented so far
Training
Florim believes that in-house training plays a key role in the companyrsquos development and provides a tool for stimulating and fulfilling the potential of its human resourcesMore than 10600 training hours were provided in 2016 to 847 people with an average of more than 11 hours of training per employee New projects included a 6-month on-line English language course which attracted a large number of participants and two highly structured training courses for the sales division and the communication department A retraining program for workers at the Mordano plant was also completed it comprised 4 technical courses attended by 31 people for an average of 13 hours per person Another new entry for 2016 was an innovative procedure for acquiring information about training needs using an on-line questionnaire available to all employees as well as line managers specific recommendations The Master in Florim project is discussed in depth in the specific section
Health and Safety
Florim was the first Italian ceramics manufacturer to receive BS OHSAS 18001 (Occupational Health amp Safety Assessment Series) certification from TUumlV this international standard certifies the implementation of an internal management system oriented towards occupational health and safetyThis major award confirms the companys constant commitment to the well-being of its employees Every year in addition to engineering inspections and machinery maintenance a number of hours of safety training are organised to raise awareness among workers and supervisors Specifically in 2016 2849 hours were dedicated to safety training and a significant reduction in injury rates was recordedMoreover BLSD refresher courses are continuously held for the team of Florim employees trained in first-aid operations and the use of the defibrillators available on site
2012 2013 2014 2015 2016
Number of workplace injuries 63 62 74 56 43
2016 Sustainability Report 29
The Master in Florim organized for the fourth time in 2016 is a vocational training project which aims to bridge the gap between education (high school or university) and the world of work The program which is one of the companys Social Responsibility projects sets out to help young people to get to know the company through a well structured work experience plan It offers a distinctively northern European approach with a method which alternates classroom teaching with internships in the various areas of the company Participants new university or high school graduates specialising in various subjects all below 30 years of age are therefore able to gain hands-on experience of all Florim departments from RampD to the production process and product distribution for an all-inclusive vision The MASTER courses ambitious aim is to match the individual participants talents with the companys real needs At the end of each edition the company hires all or some of the selected candidates enabling it to acquire new skills new experiences and new energy
Master 40 in figures
20 young people taking part6 months of training13 external lecturers264 hours of classroom teaching392 hours of practical training4 company visits (Ferrari Tetrapak Cremonini and Ducati)50 days of work experience on rotation involving 15 departments1 month of project work
The projects prestige is enhanced by its economic context since Florim pays the young participants for the entire period and its aim is to deal with the thorny problem of youth unemployment The Master has won approval from various faculties at major Italian universities The project was also a winner in the Emilia-Romagna Regions 2016 awards for Corporate Social Responsibility projects run in the local community A prize in the ldquoBusiness and Educationrdquo category was assigned to the Master project which aims to give young people the skills required for sustainable development
Master in Florim
2016 Sustainability Report
Watch the videoof the 4th edition
2016 Sustainability Report30
Local Community amp Culture
This chapter describes a number of programs Florim runs for the local community in the area where it originated and where it has been working for more than 50 years
Politecnico di Milano
Since the 20052006 academic year Florim has been a partner sponsor of a large number of Postgraduate Courses run by POLIDesign the Politecnico di Milano consortium which organizes its Master Degree coursesAlso in association with POLIDesign since 2012 Florims Milan showroom has hosted several design events for architects and designers of every nationality
Aziende modenesi per la RSI
ldquoAziende Modenesi per la RSIrdquo an independent open inclusive association of companies in the Modena area which believe in the principles and values of Corporate Social Responsibility was established by public deed on 30 September 2014 with Florim as a founding member Florim hosts the associations member companies every year to discuss the various topics proposed
Premio Lucchese
The Premio Lucchese presented for the twenty-ninth time in 2016 was established in memory of Giovanni Lucchese and consists of scholarships awarded to students at the ldquoAlessandro Voltardquo Technical High School in Sassuolo who graduate with full marks The award ceremony held every year at the Florim Gallery in association with Societagrave Ceramica Italiana of Bologna includes a talk given by a leading personality on a topic of current interest to an audience of eager young listeners
Intrapresaelig Collezione Guggenheim
As befits a company that combines the values of its local community and historic and artistic heritage with a flair for research and innovation Florim recently launched a partnership with the Peggy Guggenheim Collection Since its foundation Florim has always had a unique ability to incorporate the true cultural significance of its industry in its business model and by this project once again confirms its commitment to promoting art by supporting a collection of extraordinary beauty
Fondazione Ing Giovanni Lucchese
More than thirty years after the untimely death of Giovanni Lucchese ndash founder of what was then Floor Gres currently Florim ndash in 2013 his family established a Foundation in his name which since then has funded organizations and associations that support families in need in the ceramics district The Foundation also supports a variety of projects such as the summer play scheme for employees children the Premio Lucchese and the Florim HealthampTraining Center described in more detail below
The main projects undertaken in 2016 include the funding of the purchase of 10 defibrillators for the Municipality of Fiorano and the contributions made to the purchase of paediatric ambulances for the local area and to support the Parish charitable organizations and social services in the district
Watch the Premio Lucchese video
The project run jointly by Florim and Sassuolo Hospital adopts a completely new model combining industrial culture and healthcare in an original way to benefit the local people and community thanks to the coming-together of a ceramic coverings manufacturer and the public-private joint venture Ospedale di Sassuolo Spa Florim HealthampTraining is the synthesis of this idea an experimental center which promotes local training for healthcare and other staff health education and information advanced medical simulation and research
The Center
On the main Florim site and opened on 16 April 2014 the Center is 550 square meters in area and contains a modular lecture theatre able to seat over 100 people and a number of classrooms for seminars and lessons At its heart is a state-of-the-art control room crammed with technology that operates dummies capable of reproducing human functions of all kinds Advanced simulation is a major aid to maintaining the skills of emergency healthcare workers with a particular focus on pediatric and neonatal resuscitation
Health meetings
Designed as a space for community use the Center also aims to become a place where all sections of the population - workers schoolchildren parents teachers volunteers and even just members of the public - can learn about preventive health care and acquire first aid skills After the distribution to Florim employees of a questionnaire surveying their training needs and preferences a Center Scientific Committee of Sassuolo Hospital medical personnel was appointed and drew up a plan of bi-monthly ldquoHealth meetingsrdquo All meetings are led by doctors with expertise in the various topics who answer the many questions from the audience at the end of their talks Between its opening and the end of December 2016 the Center hosted 13 meetings on a variety of topics attended by about 1000 people including employees their family members and the community at large
Healthcare discounts for Florim employees
The project also includes a major welfare program for all Florim employees and their family members entitling them to discounts and shorter waiting times for specialist examinations and outpatient diagnostic tests performed on a private basis
American Heart Association
The world-famous American Heart Association (AHA) is the oldest and most respected American voluntary organization dedicated to the fight against cardiovascular diseases and strokes In 2015 the AHA via the Simaid International Training Center named the Florim HealthampTraining Center as an Authorized Training Site for basic and advanced cardiopulmonary resuscitation
Florim HealthampTraining Center
2016 Sustainability Report
Watch the Health amp Training Center video
2016 Sustainability Report32
Product Responsibility
Here we summarize the concept of Made in Florim denoting a product that encapsulates the companys core values passion innovation a constant commitment to improvement and corporate social responsibility
Florim product certifications
CE Marking guarantees the user that the materials purchased meet the requirements of the relevant regulations and that the characteristics concerned are virtually unchanged for all production lots It is a declaration of conformity which protects the consumerrsquos safety The presence of the CE Marking on packaging guarantees that Florim products comply with the relevant regulatory requirements
Ecolabel (EC Regulation 662010) is a certification granted to products which comply with ecological and performance criteria set at a European level concerning raw material extraction supplier selection manufacturing processes packaging distribution use and disposal The certified Florim collections are Architech Ecotech Reverse Walks 10 by Floor Gres and Pietra del Nord under the Rex brand
Several ceramic tile collections bearing the Florim brands have earned certification from Bureau Veritas for their pre-consumer recycled material content These articles are therefore fully eco-compatible and can meet the environmental sustainability requirements imposed by many international certifications
Florim is a member of the US Green Building Council (USGBC) the most important association which promotes the reduction of buildings negative impact on the environment To allow the effective monitoring a projects level of sustainability the USGBC has developed a certification procedure for the development of sustainable buildings which assess and certifies the sustainability of a building in its entirety Florim materials are able to help to gain LEED points in a number of areas (data available on the Florim brand websites)
Florim has achieved the prestigious Greenguard certification for all its products Issued by the American body UL Environment this certification aims to reduce indoor pollution caused by interior design systems and materials UL Environment thus aims to protect health by improving air quality and reducing peoples exposure to chemicals and other pollutants Florim has also achieved Greenguard Gold Certification which imposes even stricter limits to confirm that a given product is suitable for use even in locations such as schools and health care facilities
The EPD or Environmental Product Declaration is a document which defines the environmental impacts arising from production In 2016 Florim participated in the study - certified by the German organization IBU - performed on the ceramics industry average data which aims to raise international awareness of the excellence of the environmental standards achieved
Beyond the standardsMade in Florim products are a guarantee of safety highly innovative content and eco-friendliness The people who produce them work in a safe place and in ethically sustainable conditions Due to their nature all Florim products are guaranteed free from pollutant emissions do not accumulate electrostatic charges are frostproof and completely inert and are undamaged by contact with flames The Groups Internet sites and collection catalogues contain the technical data sheets which detail the product information (slip-resistance breaking strain abrasion resistance etc) for every collection as well as its recycled material content with the relative certificates
During the period under consideration no banned products were placed on the market and the company was not found guilty of any breaches of the law with regard to data protection or its marketing and communication activities
EU Ecolabel nr IT2104
2016 Sustainability Report 33
Quality SystemThe current ISO 9001 standards define quality as the ability to satisfy explicit or implicit needs via a product or a service A Quality System implies constant improvement of company processes in order to realise products that always satisfy the customerrsquos needs Further to the 2016 audit Florim obtained the renewal of its UNI EN ISO 90012015 certification for the design manufacture and sale of all categories of ceramic tile
Objective Indicator 2012 2013 2014 2015 2016
Continual improvement of control of the production process
Percentage of First Grade Product ()
924 943 942 952 956
Quality rate () 883 905 903 905 909
Scrap rate () 44 41 42 42 49
Productivity (sq mhour) 186 188 186 190 200
Improvements in sales performance and customer satisfaction
Innovation rate () 330 296 367 455 364
Coverage () 795 714 814 813 816
Total portfolio shippable within one month ()
911 837 888 893 897
Optimization of range and stocks
Obsolete stock () 172 126 165 120 69
Stock turnover rate () 13 15 16 15 16
Gradual elimination of disputes complaints and claims concerning service
Square meters affected by complaints ()
17 12 08 12 09
Complaints by number of order items ()
10 11 11 10 10
Gradual improvement in staff skill levels
Employee turnover () 15 23 04 04 12
KeyPercentage of first grade product percentage ratio between the square meters of first grade products and the total square meters transferred to stockQuality rate percentage ratio between the square meters of first grade product transferred to stock and the square meters leaving the pressesScrap rate percentage difference between square meters of material leaving the presses and square meters of product actually transferred to stockProductivity ratio between the square meters transferred to stock and the total hours worked in the plantInnovation rate ratio between square meters sold belonging to series designed in the last three years and total square meters sold Florim uses this indicator to assess the effectiveness of its design process in terms of salesCoverage percentage ratio between square meters available for immediate shipment and the square meters on orderTotal portfolio of orders shippable within one month percentage ratio between the square meters which can be shipped in 30 days and the square meters on orderObsolete stock percentage ratio between the square meters of substandard discontinued produce and the total square meters in stock Stock turnover rate ratio between the square meters sold and the square meters in stockSquare meters affected by complaints percentage ratio between the square meters affected by complaints and the square meters soldComplaints by number of order items percentage ratio between the number of complaints and the number of items orderedEmployee turnover percentage ratio between the number of employees leaving the company and being replaced and the workforce at the start of the year
2016 Sustainability Report34
Casamood - Neutra 60 Collection
2016 Sustainability Report 35
OUR COMMITMENTS
The promises we keptIn our last Sustainability Report we committed to achieving a large number of objectives the following are the outcomes we attained
Relaunch of the ldquoCEDIT ndash Ceramiche drsquoItaliardquo brand OBJECTIVE ACHIEVED
Launch of the FLORIM stone brand OBJECTIVE ACHIEVED
Installation of a new latest-generation kiln at the Mordano plant OBJECTIVE ACHIEVED
Transfer of the Moscow showroom to new premises SCHEDULED FOR 2017
Creation of a new gatehouse at the Mordano plantOBJECTIVE POSTPONED TO GIVE PRIORITY TO THE CONSTRUCTION OF THE NEW FACTORY
Introduction of ERP system at Florim USA OBJECTIVE ACHIEVED
Installation of a new spray dryer and raw material handling system at Florim USA
OBJECTIVE ACHIEVED
Economic Responsibility
Renewal of certification of the Florim environmental and energy management system
OBJECTIVE ACHIEVED
Award of new certifications for collections manufactured with a high recycled material content
OBJECTIVE ACHIEVED
Continuation of work to reduce environmental impacts at Mordano especially with the reduction of energy costs
OBJECTIVE ACHIEVED
Continuation of the work to remove asbestos cement roofing materials at the Mordano plant
OBJECTIVE ACHIEVED
Expansion of the system which conveys rainwater to the treatment plant OBJECTIVE ACHIEVED
Reduction of the noise emissions of the air filtering systems OBJECTIVE ACHIEVED
Increase of recycling targets through constant awareness-raising amongst all staff and optimisation of recycling facilities
OBJECTIVE ACHIEVED
Continuation of replacement of the diesel forklift trucks for use on outdoor yards with electric vehicles
OBJECTIVE ACHIEVED
Environmental Responsibility
Running of fourth edition of Master Florim course with new procedures OBJECTIVE ACHIEVED
Creation of an internal refreshment area for the Fiorano office staff OBJECTIVE ACHIEVED
Improvement of corporate welfare through the activation of new free services and discounts tailored to employees needs
OBJECTIVE ACHIEVED
Continuation of the health meetings for the local community in association with Ospedale di Sassuolo Spa
OBJECTIVE ACHIEVED
Organization of new community events at Florim Gallery OBJECTIVE ACHIEVED
Organization of Florim Family Day 2016 A PARTY WAS ORGANISED FOR EMPLOYEES
Social Responsibility
2016 Sustainability Report36
The targets we set for ourselvesWe aim to achieve the following objectives in 2017
Economic Responsibility
Construction of a new factory at Mordano to produce large slabs
Launch of the project to unite the Florim spa sales organizations
Total restyling of the corporate and brand Internet sites
Launch of the HUB project - Intranet CRM Marketing Automation
New plants at Florim USA a press two sorting lines a polishing and rectifying line
New working spaces and cloakrooms for technical staff at the American plant
Environmental Responsibility
Purchase of a new cogenerator for the Mordano plant
Introduction of a new rainwater collection system at Fiorano
Land reclamation project involving covering of the Rio Spezzano stream at Fiorano
Implementation of new software for continual monitoring of energy impacts at Fiorano
Modernisation of the compressor room to improve energy impacts at Mordano
Increase of recycling targets through constant awareness-raising amongst all staff and optimisation of recycling facilities
Continuation of replacement of the diesel forklift trucks for use on outdoor yards with electric vehicles
Social Responsibility
Improvement of corporate welfare through the activation of new free services and discounts tailored to employees needs
Continuation of the health meetings for the local community in association with Ospedale di Sassuolo Spa
Organization of new community events at Florim Gallery
Organization of a new event for Florim spa employees
New offices for hospitality and events staff at Fiorano
2016 Sustainability Report 37
FLORIM USA
Profile and Economic ResponsibilityFlorim USA with registered office at Clarksville - Tennessee - and its subsidiary Florim Solution Inc have been part of the Florim Group since 2000 The Florim USA manufacturing plant one of the largest most technologically advanced in the United States produces porcelain stoneware tiles for the residential market and undertakes commercial projects in North America During the last few years Florim USA has implemented a growth and process optimization strategy which has generated significant technological progress with more innovations planned for the future The strategy adopted will put Florim USA at the worldwide state of the art in porcelain stoneware tile manufacture
In 2016 of the 18 million USD invested 147 was allocated for installation of a latest-generation raw material handling system and a large spray-dryer with an innovative sorting system Improvements were made to other parts of the process to increase their efficiency leading to a further reduction in emissions and scrap rates Additional investments are planned during 2017 to continue this dual trend of rising production with mitigation of environmental impact
The new Florim Flagship Store in New York (152 Madison Avenue 32nd Street)
2016 Sustainability Report38
Environmental ResponsibilityFlorim USA implements the same environmental policy as Florim and is committed to achieving the following objectives
bull reduction of the energy used in the production processbull improvement of the waste management process with a focus on recovery and reusebull introduction of new more eco-efficient technologiesbull adoption of integrated management systems
Florim USA has been pursuing a strategy of careful management of its operations and environmental impact for a number of years Here we summarise the main actions taken and the results achieved in 2016
bull installation of a latest-generation spray-dryer in 2016bull installation of an innovative raw material handling system in 2016bull 100 recycling of wastewater within the processbull optimisation of the management of water bottles with elimination of about 34200 of them per annumbull reuse of almost all production scrap (+99)bull 157000 kg of cardboard recycled in 2016bull award of two different types of product certificationbull 9300 kg of plastic recycledbull recycling of 17 complete trucks of pallets
Environmental Projects and Awards
Florim USA has received Clarksville Montgomery County Green Certification (CMCGC) CMCGC is a program designed to help companies learn and implement best practices in the area of environmental stewardship to sustain the local communityrsquos resources through a series of free workshops taught by local environmental specialists Since 2014 Florim has allocated some of its Environment Managers time for the running of these workshopsFlorim USA earned this green company certification thanks to a large number of projects first and foremost the one which eliminated the use of disposable water bottles replaced with individual reusable bottles provided by the company and a series of fill-up stations About 34200 bottles are removed from the waste cycle every year
During the latest phase of its plant optimization Florim USA has implemented a thorough construction material reuse policy In the various stages of demolition of the old plants including the old storage silos the concrete debris was recovered and reused in other construction worksThis project alone generated 11500 tons of recycled aggregate as well as several hundred tonnes of metal sold to a recycling firm
Environmental management system and eco-compatible products
Florim USArsquos products help builders and designers to meet the requirements for sustainable buildings as defined by the United States Green Building Council (USGBC) through the LEED Green Building Rating System This protocol evaluates and certifies the environmental sustainability of a building as a unit from its design to its day to day management To gain LEED credits many of the Florim USA product lines contain a significant percentage of recycled material (40 or more)This feature contributes to an increase in the LEED score in the projects where these products are installed In 2014 Florim USA together with a large number of other US tile manufacturers and the Tile Council of North America drew up a type III environmental product declaration (EPD) certified under the ISO 14025 standard This ceramic tile life-cycle analysis enables Florim USA products to gain LEED points under the new LEED v4 protocol
2016 Sustainability Report 39
Water use (gallonsper million square feetof finished tiles)
208137 216246 204962 195280 194268
Energy use
2012 2013 2014 2015 2016
Cubic feet of natural gas per million square feet of finished tiles 9343383 9149721 8331170 8390503 8380000
kWh per million square feet of finished tiles 510972 491171 450594 465976 490300
Emissions
Particulate material lt 21024 tonnes per annum
SO2 (sulphur dioxide) lt 1674 tonnes per annum
VOC (volatile organic compounds) lt 1245 tonnes per annum
NOx (oxides of nitrogen) lt 1501 tonnes per annum
Environmental performance indicators ndash summary
The following are the main environmental indicators related to the impact and performance of Florim USA during 2016
Pre-consumer recycled material
Its internal material recycling processes enable the company to minimise its environmental impact since most of the material which would otherwise be sent to landfills or other waste treatment centers is reusedbull Wastewater is entirely recycled within the production process without any discharge into the municipal drainsbull The material in the collection bags from the tile body and glaze preparation areas the press and glaze application is entirely recycled within the processbull All scrap fired tiles are entirely recycled within the processbull 157000 kg of cardboard was sold to an external recycled material dealerbull 17 trucks of unusable wooden pallets were sold to a pallet regeneration companybull About 9300 kg of waste shrink-wrap plastic film was recovered and recycled
Post-consumer recycled material
About 82000 kg of glass was removed from the flow of waste destined for the local landfill and recycled within the process Florim USA has signed an agreement with the local landfill for consignment of all the glass it handles which is collected and set aside for recycling
Water use disposal and reuse
The water used during the production process is recycled continually therefore no water is discharged into the municipal drains
The 2016 emissions figures are in line with those for previous years well below the standards laid down
Water use 2012 2013 2014 2015 2016
Water use (gallons per million square feet of finished tiles) 216246 204962 195280 194268 203928
2016 Sustainability Report40
Social Responsibility
Employees
The Florim USA workforce comprises 348 staff employed at the production site the Clarksville and Nashville outlet stores and the Florim Solution offices Of the 348 employees 273 are blue-collar workers and 75 office staff 5 employees are Italians on secondment to the United States Florim USA offers a number of benefits to full time employeesbull health and dental care insurancebull Vision insurancebull life insurance for employees and optionally for family membersbull temporary and permanent disability supportbull employee pension plan
2012 2013 2014 2015 2016
Workplace injuries 50 41 22 29 27
The Employee Assistance Program (EAP) also offers support to employees and their families in the event of psychological difficulty or other problems that can have a negative impact on their quality of life Florim USA supports all the costs of the program
Equal opportunities
Florim USA provides equal opportunities in all employment practices to all qualified employees and applicants regardless of race colour religion gender national origin age disability or membership of the armed forces or any other category protected by federal state or local laws
Health and safety
FLORIM USA is committed to ensuring a safe healthy workplace for all employees It therefore replaces old and obsolete equipment with new technologically more modern machinery and updates safety plans as new information gradually becomes availableAs well as an internal supervisor Florim USA has also appointed a health and safety committee which constantly monitors the plans effectiveness and makes any changes requiredThere are currently 20 plant employees who hold CPRfirst aid qualifications They occupy a variety of positions and work different shifts within the plant and have volunteered to attend training courses sponsored by the company for the award of these qualifications
Training
In 2016 every Florim USA employee attended an average of about 25 hours of training The training provided covered the operating procedures for the new equipment the main safety plans and the procedures for use of existing equipment for new employeesAll new staff undergo specific training for their department focusing on the safety-related aspects of the department concerned as well as more generalized safety training
Some of these themes includebull safe correct use of forklift trucksbull training on work in confined spacesbull shutdownwarning procedures and safe electrical practicesbull safe lifting procedures
2016 Sustainability Report 41
Florim USA ndash (Clarksville Tennessee)
For employees wishing to continue their education Florim USA offers assistance through the Educational Assistance Program It provides aid with the cost of education and textbooks and is available for any employee wishing to study for a technical qualification a diploma or a degreeThe plant staff training and education plan also includes various training schemes at Florim Italy where employees are instructed in the use of new equipment before it is installed at the American plantThroughout 2016 Florim USA will continue to provide a free e-learning course on its website for architects engineers and contractors (AEC) to improve their knowledge of sustainable porcelain stoneware tiles
Employee welfare activities
Florim USA employee picnic - In 2016 the company once again held its annual picnic for employees offering them a wide variety of foods games activities and live shows in an event which provided an unforgettable days enjoyment Within the event participants received prizes in the form of vouchers and gifts
Employee anniversary dinner - 2016 again saw the usual dinner to honour Florim USA employees with 5 10 15 20 or more years of service A special evening event was held in the presence of the Chairman and the other managers to celebrate the loyalty and hard work these employees have contributed during their careers with the firm
2016 Sustainability Report42
Local Community
During 2016 Florim USA continued to provide its support to a number of projects in its local areaSome of the main projects include
Scholarships - As part of its work to support the local community Florim has an established scheme which awards scholarships to deserving students at the Austin Peay State University in memory of Florim Group founder Giovanni Lucchese In December 2016 a delegation of Florim representatives attended a scholarship presentation lunch at the Austin Peay State University hosted by the President of the University
Montgomery County Green Certification Program - Florim USA staff actively participate in the Montgomery County Green Certification Program which aims to help companies learn and implement best practices with regard to safeguarding the environment and environmental resources
Donations - In 2016 the company again made a large number of donationsbull book collection for the Austin Peay State University Employees made a generous donation of used books in good condition for children and young people of the APSU in the hope of further promoting the education of future generationsbull to Community Cares the national organization that promotes the acceptance and social inclusion of individuals with Downs Syndromebull to the Aspire Clarksville Foundation a 501(c)(3) charitable foundation whose mission is to continuously improve the economy and the livability (quality of life) of the community by attracting significant capital investment and expansion by businesses and corporations thereby creating better opportunities and higher paying jobs for residentsbull to the Alzheimerrsquos Association a non-profit voluntary organization dedicated to the care and support of Alzheimers Disease sufferers and research into the condition Its aim is to eliminate the disease through the advancement of research to provide and enhance care and support for all affected and to reduce the risk of dementia through the promotion of brain health
Other activities - Every year Florim USA participates in the United Way Drive initiative to support local non-profit organizations which provide economic assistance and psychological support to persons in difficulty
Florim USA provides regular support to the Salvation Army by collecting canned foods for persons in needIn 2016 the company again organised a canned food collection for Manna Cafeacute in Clarksville TN Manna Cafeacute is a local non-profit organization based in Middle Tennessee with the primary mission of meeting peoples fundamental need for food before encouraging them to permanently change their lives for the better More than 15 of the population in Montgomery County are affected by food insecurity (about 28000 people) The percentage of children affected is about 215 a third of whom are excluded by income from federal programs such as free school mealsFinally donations were made tobull American Lung Association the leading organization working to save lives by improving lung health and preventing lung disease through research and educationbull Cheer for a Cure an organization that gives money directly to afflicting families who have a loved one suffering from cancer and need assistance to alleviate the added financial stressbull Habitat for Humanity Since 1992 Habitat for Humanity in Montgomery County Tennessee has worked with 93 low-income families with more than 210 children to revitalise various parts of Clarksville-Montgomery County by building new homes
2016 Sustainability Report 43
Quality SystemFlorim USA works under a Quality System certified to UNI EN ISO 9001 standards The following are some of the figures in brief
Objective Indicator 2012 2013 2014 2015 2016
Optimisation of control of the production process
Percentage of First Grade Product ()
932 917 940 949 9510
Quality rate () 883 857 893 906 909
Scrap rate () 56 65 48 45 45
KeyPercentage of first grade product ratio between square feet of first grade material and total square feet transferred to stockQuality rate ratio between square feet of first grade material transferred to stock and square feet pressedScrap rate ratio between square feet pressed and square feet of product actually transferred to stock
Other ActivitiesFlorim USA and trade shows
In 2016 Florim USA participated at a number of shows and events including Coverings the AIA Tennessee Convention Hardscape North America Total Solutions Plus Neocon International Pool - Spa and Patio Expo These events targeted at the various categories of industry professionals such as dealers and designers gave Florim USA the opportunity to present its new range of indoor and outdoor products
Design Center
In December 2015 Florim USA opened a design center showroom in Nashville (TN) in a strategic location close to the airport and the city center With a spacious area to host individual CEU presentations and workshops this design center has the potential to be a major resource for local architects In 2016 it was also awarded the ldquoOutstanding Boothrdquo booth prize at the 33rd edition of the Annual Home Decorating and Remodeling Show The location is the ideal place for sharing ideas finding inspiration and putting professionals and architects in touch with each other
Florim Nashville Design Center
2016 Sustainability Report44
GRI International Sustainability Indicators SDGsThe information below illustrates the correspondence between the Florim (Italian companies) 2016 Sustainability Report the GRI-G4 guidelines and the icons of the Sustainable Development Goals (SDGs) definitively adopted by the United NationsA description of the SDGs is available at wwwglobalcompactnetworkorg
GRI indicators
Description Page Reference to SDGs
1 Strategy and Analysis
G4-1 Statement from the most senior decision-maker of the organization 5
2 Organization profile
G4-3 Name of the organization 2
G4-4 Primary brands products andor services 9
G4-5 Location of the organizations headquarters 9
G4-6 Number and names of the countries where the organization operates 9
G4-7 Nature of ownership and legal form 14
G4-8 Markets served 9
G4-9 Scale of the organization 8 8
G4-10 Significant changes regarding size structure or ownership 8
G4-11 Employees covered by National Collective Bargaining Agreement 27
G4-12 Describe the supply chain 16
G4-13Significant changes regarding the organizationrsquos size structure ownership or its supply chain
Reporting process
launched
G4-14 Precautionary principle 22
G4-15 List of external commitments in which the company is involved 22 32 33
G4-16 Associations or interest groups in which the company is involvedwwwflorimit gt
about us gt partnerships
3 Identified material aspects and boundaries
G4-18 Process used to define the report content 6
G4-19 Material aspects 16
G4-20 Boundaries of each material aspect 6
G4-21 Boundaries of each material aspect outside the organizationPartial reporting
(pages 6 16)
G4-22 Explanation of the effect of any restatements of information provided in previous reports 6
G4-23Significant changes from previous reporting periods in the scope boundaries or measurement methods
6
3 Stakeholder engagement
G4-24 List of stakeholders 15
G4-25 Identification of stakeholders 15
G4-26 Stakeholder engagement 6 16
G4-27 Key topics and concerns that have been raised through stakeholder engagement 16
4 Boundary of the Report
G4-28 Reporting period 6
G4-29 Date of publication 2
G4-30 Reporting cycle 6
G4-31 Contacts and addresses for additional information 46
5 GRI Content Index
G4-32 Reporting option chosen 6 7
G4-33 External assurance of ReportThe Report is not
externally assured
2016 Sustainability Report 45
GRI indicators
Description Page Reference to SDGs
6 Governance
G4-34 Governance structure 14
7 Ethics and integrity
G4-56 Values principles standards and norms of behavior 13 16
Economic performance indicators
EC1 Direct economic value generated and distributed 19 25789
EC5 Wages 27 158
EC7 Development and impact of infrastructure investments and services supported 23 24 31 257911
Environmental performance indicators
G4-EN2 Percentage of materials used that are recycled input materials 17 22 23 812
G4-EN3 Energy consumption within the organization 24 781213
G4-EN6 Reduction of energy consumption 17 24 71213
G4-EN7 Reductions in energy requirements of products and servicesPartial reporting
(page 22)71213
G4-EN8 Total water withdrawal by source 17 23 6
G4-EN10 Percentage and total volume of water recycled and reused 17 21 23 612
G4-EN11 Biodiversity 23 615
G4-EN15 Total indirect greenhouse gas emissions by weight 25 3121315
G4-EN16 Total indirect greenhouse gas emissions by weight 25 3121315
G4-EN19 Reduction of greenhouse gas emissions 8 24 1315
G4-EN21 NOx SOx and other significant air emissions 25 31215
G4-EN22 Total water discharge by quality and destination 23 6
G4-EN23 Total weight of waste by type 17 22 3612
G4-EN27 Impact mitigation of environmental impacts of products and services 23 68121315
G4-EN29 Monetary value of significant fines 22 16
G4-EN30 Significant environmental impacts of transporting products and goodsmaterialsPartial reporting
(page 25)111213
Social performance indicators
G4-LA1 Total number and rates of new employee hires and employee turnoverPartial reporting
(pages 17 27)8
G4-LA6 Workplace injury ratesPartial reporting
(page 17)38
G4-LA9 Average hours of training per year per employee 28 48
G4-LA12Composition of governance bodies and breakdown of employees according to gender age group etc
27 58
G4-LA13 Ratio of basic salary and total remuneration of women to men 27 5810
Society
G4-SO1 Operations with local community engagement 12 31 16
G4-SO3 Operations assessed for risks related to corruptionPartial reporting
(page 13)
Product responsibility
G4-PR1 Assessment of health and safety impacts for improvement 23 32
G4-PR3 Type of information about products and services required by the procedures 32 12
G4-PR5 Proceedings relating to customer satisfaction including surveys conducted to measure it 33
G4-PR6 Sale of banned or disputed products 32
G4-PR8 Number of substantiated complaints regarding breaches of privacy 32 16
2016 Sustainability Report46
Your Assessment
You are kindly requested to take a few minutes of your time to give us your assessment and any suggestions to enable us to improve future editions of our Sustainability Report
Click here to send us your feedback
To keep up to date with our business
Spazio CEDIT - interior (Milan)
wwwflorimiten
Florim Ceramiche
Florim4Architects
Florim_ceramiche
Florim Ceramiche spa
Florim Ceramiche
Florim Ceramiche
For any further information please feel free to contact our communications department comunicazioneflorimit
2016 Sustainability Report 47
Premio Lucchese - Florim Gallery (Fiorano Modenese - Modena Italy)
Intrapresaelig Guggenheim Collection - Massimo Bottura in Florim Gallery (Fiorano Modenese - Modena Italy)
Panathlon Christmas Gala - Florim Gallery (Fiorano Modenese - Modena Italy)
2016 Sustainability Report48
White Christmas Party - Florim Gallery (Fiorano Modenese - Modena Italy)
Cersaie - Mario Biondi in Florim Gallery (Fiorano Modenese - Modena Italy)
Dal buio alla luce - Social event at Florim Gallery (Fiorano Modenese - Modena Italy)
2016 Sustainability Report 49
Florim Gallery entrance (Fiorano Modenese - MO)
2016 Sustainability Report52
Florim Ceramiche spaVia Canaletto 24 - 41042 Fiorano Modenese (Modena Italy) - Tel +39 0536 840111 - wwwflorimit
2016 Sustainability Report14
Corporate BodiesFlorim Ceramiche spa is a family-run business with fully subscribed paid-up share capital consisting of 50000000 ordinary shares with a face value of 1 Euro each The capital is 100 owned by the holding company FinFloor spa with registered office in Fiorano Modenese which is in turn indirectly owned by the Lucchese family through Fin-Twin spa
The Board of Directors has 11 members
CLAUDIO LUCCHESE Chairman
DONATO BRUNI Deputy Chairman
MARIADELE LUCCHESE Director
ANNA LUCCHESE Director
FRANCESCA LUCCHESE Director
GIOVANNI LUCCHESE Director
The Board of Directors has a mandate of one year and new elections will coincide with the approval of the financial statements The Board of Statutory Auditors is composed of three members whose term of office is three years from their appointment on 1252016 until approval of the 2018 financial statements The financial statements of Florim spa and the consolidated financial statements of FinFloor spa and Fin-Twin spa are audited and certified by Deloitte spa
Corporate StructureThe changes to be noted since the previous financial statements include the incorporation of ldquoMordano 4 srlrdquo and amalgamation by acquisition of Maker srl in Florim Ceramiche spa
KRONOS 2 CERAMICHE spaShare capital euro 1646799
Fondazione Ing G LuccheseEndowment euro 60000
FABBRICA delle MATERIE srlShare capital euro 10000
EDIL FLOOR surlShare capital euro 9812681
ISABELLA srlShare capital euro 100000
FI HOLDING IncShare capital USD 50000
100
10
100
30
9667
100
1
1
99
99
100
FIN TWIN spaShare capital euro 540800
FINFLOOR spaShare capital euro 10500000
542810
FLORIM CERAMICHE spasingle shareholder companyShare capital euro 50000000
100
FLORIM BRASIL LtdaDISTRIBUICcedilAtildeO DE CERAcircMICAS Ltda
Share capital R$ 46100000
FLORIM RUSShare Capital 100000 Roubles
FLORIM USA incShare capital USD 51865541
FLORIM SOLUTION IncShare capital USD 845943
100
MORDANO 4 srlShare capital euro 100000
85
FLORIM FAR EAST PTE LtdShare capital S$ 10000
100
ERMES GIUSEPPE FERRARI Managing Director
GIOVANNI GROSSI Managing Director
OSCAR ISEPPI Managing Director
DORVAN SAZZI Managing Director
STEFANO TORRENTI Managing Director
2016 Sustainability Report 15
StakeholdersStakeholders are all individuals and groups who may influence or be influenced by a companys operations in terms of policies products and working processes shareholders employees customers and consumers suppliers local government the local community banks and trade unions
Employees and Trade Unions
Florim makes the following commitments to its employees
bull to guarantee equal opportunities fair pay and professional growth
bull to reward its human resources on the basis of transparent meritocratic criteria
bull to create safe working environments and processes
bull to guarantee transparency and clarity in contract conditions
bull to encourage dialogue and internal communications
Customers and Consumers
In dealing with its (retail) customers Florim is committed to
bull creating a relationship of trust as a stable basis for business
bull guaranteeing clarity in contracts and prices
bull guaranteeing the reliability of its products and developing customer service
bull offering innovative safe environmentally sustainable products
bull providing a diversified offering with services with high value added
The overall aim is also to satisfy the expectations and demands of the final consumer
Developers Architects and Interior Designers
To meet the needs of developers Florim is committed to
bull offering state-of-the-art solutions in terms of environmentally sustainability technology and design
bull establishing and fostering relationships with partner professionals
bull providing consulting and technical experience from the project concept through to installation
bull supplying turnkey solutions
Local Communities and Local Government
In its relationships with local communities and local institutions Florim is committed to
bull guaranteeing dialogue cooperation and transparency
bull giving value back to the local communities in the areas where it operates
bull continually improving the environmental performances of processes
bull researching developing and using the most sustainable technologies
bull making an economic contribution to local sporting and social projects for children and young people
Suppliers
When selecting its suppliers Florim pays close attention to companiesrsquo CSR practices Florims relationships with its suppliers are based on compliance with the values of its code of ethics otherwise contracts are automatically terminated Florim also guarantees certainty in payment times and compliance with contract terms provided the goods and services contracted are delivered as agreed
ERMES GIUSEPPE FERRARI Managing Director
GIOVANNI GROSSI Managing Director
OSCAR ISEPPI Managing Director
DORVAN SAZZI Managing Director
STEFANO TORRENTI Managing Director
2016 Sustainability Report16
Materiality ApproachIn 2015 the company began an internal analysis process based on the materiality principle in order to identify the sustainability issues of relevance both for the Group (including Florim USA) and for all stakeholders Materiality is the threshold above which a topic becomes sufficiently important to be included in the report In fact organizations are faced with a large number of topics on which they could report Relevant topics and indicators are those considered important for reflecting the organizations economic environmental and social impacts or which influence the decisions of its stakeholder and which therefore potentially merit inclusion in the report In accordance with the GRI ndash G4 Guidelines Florim has analyzed and identified relevant topics which were assessed by the working team which drafted the Sustainability Report on the basis of discussion with the main stakeholders The findings which emerged were supported by a qualitative survey external to the companys context examining an analysis of the press gallery (more than 650 articles) competitors Sustainability Reports the Emas Study of the Fiorano and Sassuolo Ceramics District and the GRI document ndash ldquoSustainability Topics for Sector What do Stakeholders want to knowrdquo
In the chart below the aspects found to be most important appear in the top right-hand corner and constitute a strategic priority for the Group The topics in the bottom left-hand corner such as biodiversity prevention of corruption and absence of discrimination are less relevant because they are easy for both the organization and stakeholders to manage and no problems have ever been reported over the years Similarly the protection of human rights is now taken for granted since Florim complies strictly with all the provisions of the National Employment Contract
Importance for stakeholders
Importance for Florim spa
low
m
ediu
m
high
low medium high
Biodiversity
Indirect economic impacts
Prevention of corruption
Market share
Absence of discrimination
Sustainable transport
management
Protection of Human Rights
Environment and safety
Water saving
Energy efficiencyRaw materials
Diversity and equal opportunities
Transparency of financial and other
information
Ethical supplier
management
Investments in the local community and social welfare
Direct and indirect environmental
impacts
Green products and
services
Economic performance
Quality of products offered to customers
Regulatory compliance
Development of human resources
and training
ENVIRONMENT
COMMUNITY
EMPLOYEESASSOCIATES
ECONOMIC PERFORMANCE
PRODUCT RESPONSIBILITY
HUMAN RIGHTS
2016 Sustainability Report 17
FinFloor consolidated (in thousands of Euro) 2012 2013 2014 2015 2016
Net earnings 315344 325853 329533 374094 406759
EBIDTA 59608 72986 84395 98115 107186
Operating result 35717 50996 58508 66255 71028
Gross cash flow 52710 68312 83274 97268 109148
Net profit 26103 35732 36433 43324 49347
Net financial indebtedness (127730) (96500) (54524) (27326) (12508)
Final inventory 95514 84432 90283 92795 96721
Net shareholders equity 186905 218847 276916 332721 369937
Total investments 32572 48780 41584 34215 53531
2012 2013 2014 2015 2016
Waste produced (t) 30228 21170 22300 30862 34423
Recycled third-party waste (t) 4028 4190 1721 2570 5627
Total water consumption (msup3) finished product (t) 075 075 078 069 071
Recycled water percentage 100 100 100 100 100
Self-generated energy in relation to consumption 67 68 62 65 75
Investments in environmental management (euro000) 13617 2493 1995 465 6400
2012 2013 2014 2015 2016
Number of employees at 3112 1037 992 984 982 987
Total number of training hours 14690 9124 9056 7176 10606
Number of training hours on environment and safety 7572 4514 4200 3008 2489
Number of workplace injuries 63 62 74 56 43
Environmental and social profile figures refer to Florim Italy for Florim USA please see the relevant section (from page 37)
REPORTING
In brief
Economic Profile
Environmental Profile
Social Profile
2016 Sustainability Report18
Economic Responsibility
Comments on 2016 Economic Data
The Groups 2016 results were again good from every point of view
Compared to the previous year turnover increased by 87 leading thanks to careful management of production costs to an EBITDA of Euro 1071 million equivalent to 263 of turnover and a profit after tax of Euro 493 million
The companys financial data also significantly improved with a net financial position of Euro 125 million compared to Euro 273 million at the end of 2015 in spite of record technical investments of Euro 535 million and financial investments of Euro 11 million
Once again underlying the results achieved were large investments in latest-generation machinery and technologies painstaking research to develop materials with exceptionally high technical and design content human resources and projects for the increasingly direct promotion of Florims image and quality standard
Investments
The technical investments made in 2016 amount to Euro 535 million while Euro 11 million was spent on reacquiring 100 ownership of Maker srl followed by its amalgamation with Florim spa on 31 December The most important industrial projects included the continuation of the work on the Mordano plant which involved investments of Euro 26 million for the restructuring of the raw material preparation area and the doubling of production capacity for traditional porcelain stonewareThe investments of US$ 18 million at Florim USA were utilised to complete the renewal of the raw material preparation area and construct a new building for the technical organizationFinally about 9 million Euro was invested at Fiorano on various production line modernization projects
A creative hub for design style and new trends Milan once again confirms that it is the ideal setting for Florims investments and the opening of the all-new ldquoSpazio CEDITrdquo confirms the companys determination to strengthen its bonds with design professionals working in high-end interior design The culture of beauty art architecture and design are all integral to the genetic make-up of CEDIT ndash the historic Italian brand relaunched by Florim in 2016 ndash and dominate the display areas and the first six ceramic covering collections styled by famous names on the contemporary creative sceneOn two levels with a total floor area of more than 200 msup2 the space maintains the same stylistic identity as the one at Fiorano Modenese since they are both constructed to an architectural design intended to be replicated in CEDIT customers showrooms worldwide
Spazio CEDIT Watch theinauguration video
2016 Sustainability Report 19
Economic Value Generated and Distributed
The figures for the economic value generated and distributed provide a simple clear explanation of how Florim has created wealth and redistributed it to its stakeholders The table below contains the data from Florims 2016 financial statements approved by the Board of Directors on 30 March and certified by external auditorsThe economic value directly generated is represented by the total earnings for 2016 while the economic value distributed includes the costs incurred for suppliers and employees payments to the state (taxes) and the donations which had positive repercussions for the community to which Florim spa belongs
Heading 2014 2015 2016
Revenues 253125 269855 302521
Direct economic value generated 253125 269855 302521
Operating costs 135735 150951 168809
Employee wages and benefits 56985 58149 62418
Payments to providers of capital 7413 6399 11903
Payments to government 15738 13162 15382
Community investments 221 212 240
Economic value distributed 216092 228873 258752
Economic value retained 37033 40982 43769
KeyRevenues net sales plus revenues from financial investments and sale of assetsOperating Costs payments to suppliers non-strategic investments royalties payment facilitationsEmployee wages and benefits employee wages and benefits per employees (current payments)Payments to providers of capital all payments to the organizations providers of capitalPayments to government gross taxes and dutiesCommunity investments voluntary donations and investments in the communityEconomic value retained calculated as economic value generated less economic value distributed
The data in the table are in thousands of Euro and refer to the consolidated financial statements of the Italian companies only
KBIS (USA) - detail of the stand created with ldquoI Classici di Rexrdquo
2016 Sustainability Report20
Casa dolce casa ndash Argille 20 Collection
2016 Sustainability Report 21
Environmental ResponsibilityEffective environmental policy management energy saving and emissions reduction are amongst Florims strategic sustainability objectives
Our green projects in figures
2 highly-regarded process certifications
ISO 14001 (ENVIRONMENT)and ISO 50001 (ENERGY)
849873 MWh is the amount of electricity the
company succeeded in producing in-house during 2016
2 departments (marketing and communications)
engaged on digitizing advertising tools
8462 tons of CO2 NOT emitted
CO2
100 is the percentage of wastewater recycled
16000 msup2of photovoltaic panels covering
an area of 30000 msup2
75 is the percentage of the electricity consumed which is
produced in-house
4 latest-generation industrial kilns installed in
the last 3 years
4 different types of environmental product
certification
2 cogeneration plants to increase energy saving
and efficiency
1 laboratory for the development of contemporary design projects with a specific focus on the materials green
content
100is the percentage recycling of
industrial greenware waste in the production process
2016 Sustainability Report22
Certifications
System and process certifications
UNI EN ISO 14001TUumlV has awarded Florim the highly-regarded UNI EN ISO 14001 voluntary certification which confirms its compliance with a series of internally certified procedures intended to improve the internal environmental management system The decision to seek this certification springs from the desire to reconcile quality with efficiency and productivity while protecting the environment and community in which the company operates
UNI EN ISO 50001Thanks to a careful energy management policy and aided by the latest investments in the production area also intended to improve energy efficiency Florim was the worlds first ceramics manufacturer to obtain ISO 50001 certification of its Energy Management System
In addition to its environmental certifications Florim has also been awarded prestigious AEO (Authorized Economic Operator) status
Further to a lengthy and demanding audit process by the Customs Authorities in 2016 Florim was awarded AEO certification the first company in the Province of Modena to receive this major form of approval Authorised Economic Operator status guarantees the companys absolute compliance with customs and security requirements in its foreign trade
Environmental Management
Waste 2012 2013 2014 2015 2016
Total waste produced (t) 30228 21170 22300 30862 34423
Non-dangerous recyclable waste (such as paper and cardboard fired scraps plastic glass and wood) ()
989 982 985 991 989
Non-dangerous disposed-of waste (such as the waste picked up by the motor sweepers) ()
02 04 02 02 02
Dangerous recyclable waste (such as spent oil batteries and monitors) ()
00 01 01 01 00
Dangerous disposed-of waste (such as spent lime) () 01 13 12 07 09
Third-party waste recycled within the production process (t) () 4028 4190 1721 2570 5627
Besides recycling greenware waste from its own production cycle (not included in the table because the amount cannot be calculated) Florim also recycles third party waste
Florims operations have always been oriented towards optimization of impact on the local community and environment Thanks to the work of its research laboratories the support of all staff and the recent investment plans tangible results have been achieved The data provided below reveal that in spite of an increase in production of 8 compared to the previous year consumption remains low The companys commitment to environmental protection is all-inclusive and also comprises a focus on the district within which it operates One example is the total removal of all asbestos cement from the Fiorano Modenese plant and the creation of the new recycling station opened in 2015 and donated to the Local Authority as a public serviceAs in previous years during 2016 Florim was not fined for any breaches of environmental regulations or laws
Florim recycles and optimises within the production process all greenware scraps dust residues from filters and sludge from the process and rectification wastewater treatment system The waste produced is detailed in the table the significant differences between years are due mainly to the major demolition and subsequent reconstruction works undertaken at the Italian plants
Waste Management
2016 Sustainability Report 23
Water Resources
No environmental impact of wastewater discharges is specified since all the water from the production cycle is completely reused (100) All other effluents comply with legal requirements
The figure states the total cubic meters of water used per ton of finished product The water used in the Fiorano production process is drawn from private company-owned wells with water from the public main only used for non-industrial purposes The Mordano plant is supplied by an industrial water main Water use is measured by means of meter readings Four highly innovative dry rectifying plants have gone into production at Mordano since 2015 enabling the company to eliminate the physicalchemical treatment of the water used in the rectification process
WATER USE
2012
08
2013
08
2014
08
2015
07Total water consumption (msup3) finished product (t)
07
2016
All packaging used for Florim materials is made from recycled paper and parts of the coverings used to protect pallets of finished products consist of recycled plastic Whats more all the packaging used (boxes cardboard shrink wraps pallets etc) can be completely recycled by the end user The latest investments made include new eco-friendly packaging machines increasing the number of these machines installed to 15 These plants completely eliminate waste due to leftover inventory saving significant amounts of cardboard
Packaging and Coverings
As the materiality assessment states Florim has no significant impacts on the biodiversity of its local area since the company is located inside the Fiorano Modenese ceramics manufacturing district at least 5 Km from the nearest nature reserve at Salse di Nirano Florim takes special care over the choice of the raw materials used for its tile body mixes of which it is required to provide documentation guaranteeing compliance with the European Directives protecting wild birds (EU Dir 79409EEC) and habitats (EU Dir 9243EEC) and the United Nations Convention on the protection of biodiversity It has also introduced a software program - used at the 3 production plants (Italy and the USA) - for the management of data on the origin of raw materials such as quarry location distance from the factory recycled content declaration technical safety and radioactive content data sheets and the expiry of the quarrying permit issued by the government
Raw Materials and Biodiversity
2016 Sustainability Report24
Energy Management
There is no disputing that large amounts of energy are required to power the production processes of ceramic tile plants with consequent direct and indirect impacts on the local area and the environmentThe main indicator used to measure plants energy performance is the mean specific total energy consumption (TEJ) measured in GJt of product transferred to stock As the table below shows this figure is obtained by adding together heat consumption (NGJ) and electricity used (EEJ)
Parameter ndash Definition Unit of measurement
2012 2013 2014 2015 2016
NGJ Mean specific natural gas consumption in relation to the unit of weight of finished product transferred to stock
GJt 557 571 576 578 598
EEJ Mean specific electricity consumption in relation to the unit of weight of product transferred to stock
GJt 111 108 111 108 107
TEJ Mean total specific energy consumption in relation to the unit of weight of product transferred to stock
GJt 668 679 686 685 705
Self-generated electricity as a proportion of consumption
67 68 62 65 75
With two cogeneration plants (for the combined in-house production of heat and electricity) and 16000 msup2 of photovoltaic panels the company certainly sets a new benchmark for the entire ceramic tile industry 2016 saw the replacement of the Fiorano turbine set (the main component of the cogeneration plant) while the one in Mordano was kept in operation 247 factors which led to a 10 increase in in-house electricity production in relation to consumption To provide a clearer idea of the scale of the achievement the amount of electricity the company generated in-house in 2016 (849873 MWh) would cover the average annual consumption of about 37000 households (With consumption per household of 229 MWh - data from the latest ISTAT survey in 2012ndash calculated on the Italian average)
Photovoltaic Plant
kWp kWh produced kg of CO2 not emitted
270021 15937250 8462680
Good Practice
The head office organizations are also optimizing paper and energy consumption In addition to issuing and distributing the energy saving handbook for its offices the company is also trying to maximize savings on the raw material used and specifically the use of paper Internally the company only purchases reams of paper which carry environmental certification and the paper used in offices is collected separately for proper disposal Externally the company distributes a system of merchandising products made mainly from recycled paper and encourages the gradual digitization of its marketing tools as well as publishing all its catalogues in digital format on its Internet sites Florim offers its distributor companies an innovative digital touch screen tool with the pdf versions of the catalogues and other tools for the final consumerIn 2016 Florim decided to adopt a new payslip distribution procedure introducing an online processing system As well as providing employees with new functions and greater operating flexibility thanks to this system the company no longer prints out the monthly payslips saving paper ink and energy The scheme initially involving all office workers has the ambitious target of also including the staff of the Fiorano and Mordano plants
The 16000 square meter photovoltaic plant received recognition from GSE (Energy Management Services) as one of the most innovative installations of its type and from its commissioning (October 2011) up to December 2016 it produced the following results
2016 Sustainability Report 25
Atmospheric Emissions
The industrial facility emits greenhouse gases basically CO2 from the following main sourcesbull combustion from the burning of fossil fuels (such as natural gas)bull processes from the minerals in the raw materials any organic matter in the clays used and any organic additives in tile body mixes
In order to comply with Directive 200387EC (ETS - Emission Trading Scheme) Florim has been reporting and certifying its CO2 emissions since 2013
CO2 emissions 2013 2014 2015 2016
CO2 emissions (t) 102728 103462 111862 132960
CO2 emissions (t) Finished product (t) 033 033 033 035
Emissions from the production cycle 2013 2014 2015 2016
Particulate material (gmsup2 finished product) 223 130 098 118
Lead (gmsup2 finished product) 000 000 000 000
Fluorine (gmsup2 finished product) 014 018 013 012
The increase in CO2 is due mainly to the large increase in the square meters produced (+ 8) and the 247 use of the cogeneration plant However it should be noted that the cogeneration plant provided a 10 increase in in-house electricity generation with lower CO2 emissions than electricity purchased from the grid produced mainly using fossil fuels (source ISPRA Fattori di emissione atmosferica di CO2 e sviluppo delle fonti rinnovabili nel settore elettrico Rapporti [Atmospheric CO2 Emission Factors and Development of Renewables in the Electricity Sector Reports] 2122015)The ratio between CO2 emissions and tons of finished product produced increased because in 2016 the sale of spray-dried material to other companies rose compared to the previous year (emissions from this phase are included in the emissions count but there is no corresponding output of finished product)
In a change from previous years the new GRI-G4 guidelines also require reporting of nitrogen oxide and sulphur oxide emissions Nitrogen oxide (NOx) emissions are within the limits permitted under the integrated environmental authorisation Sulphur oxide (SOx) emissions are not reported here since this figure is not required by the IEA
Transport
The materiality study reveals that transport is a significant factor for both stakeholders and Florim itself The company is not able to measure the impact of transportation of finished product on the local area since all shipments are ex-works However Florim which has been introducing electric vehicles to replace its oldest most obsolete unleaded petrol forklifts for years now has further optimized the handling of materials thanks to the new highly-automated logistics hub created at the via Canaletto location In 2016 about 53 of the vehicles used on the companys premises were electric with no direct greenhouse gas emissions
2016 Sustainability Report26
CEDIT ndash Creative Composition
2016 Sustainability Report 27
Workforce Composition
In 2016 the workforce included 27 people with disabilities 6 women and 21 menBearing in mind the job descriptions arising from the specific industrial sector the breakdown between men and women is in line with the industry average Male office workers and executives earn an average of 10 more than women for jobs of equal responsibility Among blue-collar workers the difference is 7 The company had a total of 29 foreign employees 24 at Fiorano and 5 at Mordano
Manager Executive Office worker
2013 2014 2015 2016 2013 2014 2015 2016 2013 2014 2015 2016
Women 2 3 3 3 3 1 1 1 137 142 133 149
Men 18 21 20 18 21 24 25 28 127 132 128 132
Total 20 24 23 21 24 25 26 29 264 274 261 281
Office ancillary Blue-collar worker Total
2013 2014 2015 2016 2013 2014 2015 2016 2013 2014 2015 2016
Women 18 16 25 19 226 219 212 196 385 381 375 368
Men 64 68 79 64 376 358 356 377 607 603 607 619
Total 82 84 104 83 602 577 568 573 992 984 982 987
Social Responsibility
Employees amp Corporate welfare
Its employees are the heart and soul of Florim they provide its character and its DNA Since 2009 when the current major economic crisis began Florim has undertaken a number of income support programs for its workforce Below we summarise some of the ongoing programmes and others run in 2016bull Ending of the Income Support Program for the Mordano plantbull Agreement with Sassuolo Hospital under which Florim employees and their family members enjoy discounts and shorter waiting times for specialist examinations and outpatient diagnostic tests performed on a private basisbull Special agreements with local health facilitiesbull Tax advice at special rates bull Special terms for banking services with financial consultants on-sitebull Discounts on the purchase of Florim products for employees homesbull Free entry to the Peggy Guggenheim Collection in Venice for employees and concessions for family membersbull Free provision of water and mineral salts in the plants during the summerbull Distribution of fuel vouchers to employees for the Christmas holidays
Summer Play Schemes and Cregraveches
In 2016 the summer play schemes for the children of employees at Fiorano and Mordano were continued for the fifth year in succession Seven different centers across the area between Modena and Bologna hosted 85 children (twice the number of the previous year) the company paid the fee for two weeks attendanceWhats more since 2013 the company has negotiated special terms with local cregraveches which now offer a number of places for employeesrsquo children at a reduced fee
2016 Sustainability Report28
Human Resources Management Policies
In July 2015 on renewal of the in-house supplement to the national employment contract the Management introduced a new phase in its relations with the Trade Unions with the aim of continuing and improving the good relationships enjoyed for decadesThe new company contract applied for all employees at the Fiorano headquarters includes more facilitations for part-time working the willingness to allow flexitime where feasible and the commitment to invest in staff training in order to generate full benefits from intellectual capital The company and the trades unions agreed on a plan to improve efficiency fundamental for maintaining the current level of competitiveness by establishing improvement in Production Efficiency and EBITDA as criteria for the payment of the new Performance Bonus The individual Attendance Score is considered together with these parameters The 2016 Performance Bonus in its first year of application was 20 higher than that paid in 2015 In addition in response to employees requests the Company increased the number of approved canteens extending the choice available and also introduced weekly laundering of work clothing for all production workersWith regard to applications for severance pay advances the Company confirms its commitment to continuing the policy implemented so far
Training
Florim believes that in-house training plays a key role in the companyrsquos development and provides a tool for stimulating and fulfilling the potential of its human resourcesMore than 10600 training hours were provided in 2016 to 847 people with an average of more than 11 hours of training per employee New projects included a 6-month on-line English language course which attracted a large number of participants and two highly structured training courses for the sales division and the communication department A retraining program for workers at the Mordano plant was also completed it comprised 4 technical courses attended by 31 people for an average of 13 hours per person Another new entry for 2016 was an innovative procedure for acquiring information about training needs using an on-line questionnaire available to all employees as well as line managers specific recommendations The Master in Florim project is discussed in depth in the specific section
Health and Safety
Florim was the first Italian ceramics manufacturer to receive BS OHSAS 18001 (Occupational Health amp Safety Assessment Series) certification from TUumlV this international standard certifies the implementation of an internal management system oriented towards occupational health and safetyThis major award confirms the companys constant commitment to the well-being of its employees Every year in addition to engineering inspections and machinery maintenance a number of hours of safety training are organised to raise awareness among workers and supervisors Specifically in 2016 2849 hours were dedicated to safety training and a significant reduction in injury rates was recordedMoreover BLSD refresher courses are continuously held for the team of Florim employees trained in first-aid operations and the use of the defibrillators available on site
2012 2013 2014 2015 2016
Number of workplace injuries 63 62 74 56 43
2016 Sustainability Report 29
The Master in Florim organized for the fourth time in 2016 is a vocational training project which aims to bridge the gap between education (high school or university) and the world of work The program which is one of the companys Social Responsibility projects sets out to help young people to get to know the company through a well structured work experience plan It offers a distinctively northern European approach with a method which alternates classroom teaching with internships in the various areas of the company Participants new university or high school graduates specialising in various subjects all below 30 years of age are therefore able to gain hands-on experience of all Florim departments from RampD to the production process and product distribution for an all-inclusive vision The MASTER courses ambitious aim is to match the individual participants talents with the companys real needs At the end of each edition the company hires all or some of the selected candidates enabling it to acquire new skills new experiences and new energy
Master 40 in figures
20 young people taking part6 months of training13 external lecturers264 hours of classroom teaching392 hours of practical training4 company visits (Ferrari Tetrapak Cremonini and Ducati)50 days of work experience on rotation involving 15 departments1 month of project work
The projects prestige is enhanced by its economic context since Florim pays the young participants for the entire period and its aim is to deal with the thorny problem of youth unemployment The Master has won approval from various faculties at major Italian universities The project was also a winner in the Emilia-Romagna Regions 2016 awards for Corporate Social Responsibility projects run in the local community A prize in the ldquoBusiness and Educationrdquo category was assigned to the Master project which aims to give young people the skills required for sustainable development
Master in Florim
2016 Sustainability Report
Watch the videoof the 4th edition
2016 Sustainability Report30
Local Community amp Culture
This chapter describes a number of programs Florim runs for the local community in the area where it originated and where it has been working for more than 50 years
Politecnico di Milano
Since the 20052006 academic year Florim has been a partner sponsor of a large number of Postgraduate Courses run by POLIDesign the Politecnico di Milano consortium which organizes its Master Degree coursesAlso in association with POLIDesign since 2012 Florims Milan showroom has hosted several design events for architects and designers of every nationality
Aziende modenesi per la RSI
ldquoAziende Modenesi per la RSIrdquo an independent open inclusive association of companies in the Modena area which believe in the principles and values of Corporate Social Responsibility was established by public deed on 30 September 2014 with Florim as a founding member Florim hosts the associations member companies every year to discuss the various topics proposed
Premio Lucchese
The Premio Lucchese presented for the twenty-ninth time in 2016 was established in memory of Giovanni Lucchese and consists of scholarships awarded to students at the ldquoAlessandro Voltardquo Technical High School in Sassuolo who graduate with full marks The award ceremony held every year at the Florim Gallery in association with Societagrave Ceramica Italiana of Bologna includes a talk given by a leading personality on a topic of current interest to an audience of eager young listeners
Intrapresaelig Collezione Guggenheim
As befits a company that combines the values of its local community and historic and artistic heritage with a flair for research and innovation Florim recently launched a partnership with the Peggy Guggenheim Collection Since its foundation Florim has always had a unique ability to incorporate the true cultural significance of its industry in its business model and by this project once again confirms its commitment to promoting art by supporting a collection of extraordinary beauty
Fondazione Ing Giovanni Lucchese
More than thirty years after the untimely death of Giovanni Lucchese ndash founder of what was then Floor Gres currently Florim ndash in 2013 his family established a Foundation in his name which since then has funded organizations and associations that support families in need in the ceramics district The Foundation also supports a variety of projects such as the summer play scheme for employees children the Premio Lucchese and the Florim HealthampTraining Center described in more detail below
The main projects undertaken in 2016 include the funding of the purchase of 10 defibrillators for the Municipality of Fiorano and the contributions made to the purchase of paediatric ambulances for the local area and to support the Parish charitable organizations and social services in the district
Watch the Premio Lucchese video
The project run jointly by Florim and Sassuolo Hospital adopts a completely new model combining industrial culture and healthcare in an original way to benefit the local people and community thanks to the coming-together of a ceramic coverings manufacturer and the public-private joint venture Ospedale di Sassuolo Spa Florim HealthampTraining is the synthesis of this idea an experimental center which promotes local training for healthcare and other staff health education and information advanced medical simulation and research
The Center
On the main Florim site and opened on 16 April 2014 the Center is 550 square meters in area and contains a modular lecture theatre able to seat over 100 people and a number of classrooms for seminars and lessons At its heart is a state-of-the-art control room crammed with technology that operates dummies capable of reproducing human functions of all kinds Advanced simulation is a major aid to maintaining the skills of emergency healthcare workers with a particular focus on pediatric and neonatal resuscitation
Health meetings
Designed as a space for community use the Center also aims to become a place where all sections of the population - workers schoolchildren parents teachers volunteers and even just members of the public - can learn about preventive health care and acquire first aid skills After the distribution to Florim employees of a questionnaire surveying their training needs and preferences a Center Scientific Committee of Sassuolo Hospital medical personnel was appointed and drew up a plan of bi-monthly ldquoHealth meetingsrdquo All meetings are led by doctors with expertise in the various topics who answer the many questions from the audience at the end of their talks Between its opening and the end of December 2016 the Center hosted 13 meetings on a variety of topics attended by about 1000 people including employees their family members and the community at large
Healthcare discounts for Florim employees
The project also includes a major welfare program for all Florim employees and their family members entitling them to discounts and shorter waiting times for specialist examinations and outpatient diagnostic tests performed on a private basis
American Heart Association
The world-famous American Heart Association (AHA) is the oldest and most respected American voluntary organization dedicated to the fight against cardiovascular diseases and strokes In 2015 the AHA via the Simaid International Training Center named the Florim HealthampTraining Center as an Authorized Training Site for basic and advanced cardiopulmonary resuscitation
Florim HealthampTraining Center
2016 Sustainability Report
Watch the Health amp Training Center video
2016 Sustainability Report32
Product Responsibility
Here we summarize the concept of Made in Florim denoting a product that encapsulates the companys core values passion innovation a constant commitment to improvement and corporate social responsibility
Florim product certifications
CE Marking guarantees the user that the materials purchased meet the requirements of the relevant regulations and that the characteristics concerned are virtually unchanged for all production lots It is a declaration of conformity which protects the consumerrsquos safety The presence of the CE Marking on packaging guarantees that Florim products comply with the relevant regulatory requirements
Ecolabel (EC Regulation 662010) is a certification granted to products which comply with ecological and performance criteria set at a European level concerning raw material extraction supplier selection manufacturing processes packaging distribution use and disposal The certified Florim collections are Architech Ecotech Reverse Walks 10 by Floor Gres and Pietra del Nord under the Rex brand
Several ceramic tile collections bearing the Florim brands have earned certification from Bureau Veritas for their pre-consumer recycled material content These articles are therefore fully eco-compatible and can meet the environmental sustainability requirements imposed by many international certifications
Florim is a member of the US Green Building Council (USGBC) the most important association which promotes the reduction of buildings negative impact on the environment To allow the effective monitoring a projects level of sustainability the USGBC has developed a certification procedure for the development of sustainable buildings which assess and certifies the sustainability of a building in its entirety Florim materials are able to help to gain LEED points in a number of areas (data available on the Florim brand websites)
Florim has achieved the prestigious Greenguard certification for all its products Issued by the American body UL Environment this certification aims to reduce indoor pollution caused by interior design systems and materials UL Environment thus aims to protect health by improving air quality and reducing peoples exposure to chemicals and other pollutants Florim has also achieved Greenguard Gold Certification which imposes even stricter limits to confirm that a given product is suitable for use even in locations such as schools and health care facilities
The EPD or Environmental Product Declaration is a document which defines the environmental impacts arising from production In 2016 Florim participated in the study - certified by the German organization IBU - performed on the ceramics industry average data which aims to raise international awareness of the excellence of the environmental standards achieved
Beyond the standardsMade in Florim products are a guarantee of safety highly innovative content and eco-friendliness The people who produce them work in a safe place and in ethically sustainable conditions Due to their nature all Florim products are guaranteed free from pollutant emissions do not accumulate electrostatic charges are frostproof and completely inert and are undamaged by contact with flames The Groups Internet sites and collection catalogues contain the technical data sheets which detail the product information (slip-resistance breaking strain abrasion resistance etc) for every collection as well as its recycled material content with the relative certificates
During the period under consideration no banned products were placed on the market and the company was not found guilty of any breaches of the law with regard to data protection or its marketing and communication activities
EU Ecolabel nr IT2104
2016 Sustainability Report 33
Quality SystemThe current ISO 9001 standards define quality as the ability to satisfy explicit or implicit needs via a product or a service A Quality System implies constant improvement of company processes in order to realise products that always satisfy the customerrsquos needs Further to the 2016 audit Florim obtained the renewal of its UNI EN ISO 90012015 certification for the design manufacture and sale of all categories of ceramic tile
Objective Indicator 2012 2013 2014 2015 2016
Continual improvement of control of the production process
Percentage of First Grade Product ()
924 943 942 952 956
Quality rate () 883 905 903 905 909
Scrap rate () 44 41 42 42 49
Productivity (sq mhour) 186 188 186 190 200
Improvements in sales performance and customer satisfaction
Innovation rate () 330 296 367 455 364
Coverage () 795 714 814 813 816
Total portfolio shippable within one month ()
911 837 888 893 897
Optimization of range and stocks
Obsolete stock () 172 126 165 120 69
Stock turnover rate () 13 15 16 15 16
Gradual elimination of disputes complaints and claims concerning service
Square meters affected by complaints ()
17 12 08 12 09
Complaints by number of order items ()
10 11 11 10 10
Gradual improvement in staff skill levels
Employee turnover () 15 23 04 04 12
KeyPercentage of first grade product percentage ratio between the square meters of first grade products and the total square meters transferred to stockQuality rate percentage ratio between the square meters of first grade product transferred to stock and the square meters leaving the pressesScrap rate percentage difference between square meters of material leaving the presses and square meters of product actually transferred to stockProductivity ratio between the square meters transferred to stock and the total hours worked in the plantInnovation rate ratio between square meters sold belonging to series designed in the last three years and total square meters sold Florim uses this indicator to assess the effectiveness of its design process in terms of salesCoverage percentage ratio between square meters available for immediate shipment and the square meters on orderTotal portfolio of orders shippable within one month percentage ratio between the square meters which can be shipped in 30 days and the square meters on orderObsolete stock percentage ratio between the square meters of substandard discontinued produce and the total square meters in stock Stock turnover rate ratio between the square meters sold and the square meters in stockSquare meters affected by complaints percentage ratio between the square meters affected by complaints and the square meters soldComplaints by number of order items percentage ratio between the number of complaints and the number of items orderedEmployee turnover percentage ratio between the number of employees leaving the company and being replaced and the workforce at the start of the year
2016 Sustainability Report34
Casamood - Neutra 60 Collection
2016 Sustainability Report 35
OUR COMMITMENTS
The promises we keptIn our last Sustainability Report we committed to achieving a large number of objectives the following are the outcomes we attained
Relaunch of the ldquoCEDIT ndash Ceramiche drsquoItaliardquo brand OBJECTIVE ACHIEVED
Launch of the FLORIM stone brand OBJECTIVE ACHIEVED
Installation of a new latest-generation kiln at the Mordano plant OBJECTIVE ACHIEVED
Transfer of the Moscow showroom to new premises SCHEDULED FOR 2017
Creation of a new gatehouse at the Mordano plantOBJECTIVE POSTPONED TO GIVE PRIORITY TO THE CONSTRUCTION OF THE NEW FACTORY
Introduction of ERP system at Florim USA OBJECTIVE ACHIEVED
Installation of a new spray dryer and raw material handling system at Florim USA
OBJECTIVE ACHIEVED
Economic Responsibility
Renewal of certification of the Florim environmental and energy management system
OBJECTIVE ACHIEVED
Award of new certifications for collections manufactured with a high recycled material content
OBJECTIVE ACHIEVED
Continuation of work to reduce environmental impacts at Mordano especially with the reduction of energy costs
OBJECTIVE ACHIEVED
Continuation of the work to remove asbestos cement roofing materials at the Mordano plant
OBJECTIVE ACHIEVED
Expansion of the system which conveys rainwater to the treatment plant OBJECTIVE ACHIEVED
Reduction of the noise emissions of the air filtering systems OBJECTIVE ACHIEVED
Increase of recycling targets through constant awareness-raising amongst all staff and optimisation of recycling facilities
OBJECTIVE ACHIEVED
Continuation of replacement of the diesel forklift trucks for use on outdoor yards with electric vehicles
OBJECTIVE ACHIEVED
Environmental Responsibility
Running of fourth edition of Master Florim course with new procedures OBJECTIVE ACHIEVED
Creation of an internal refreshment area for the Fiorano office staff OBJECTIVE ACHIEVED
Improvement of corporate welfare through the activation of new free services and discounts tailored to employees needs
OBJECTIVE ACHIEVED
Continuation of the health meetings for the local community in association with Ospedale di Sassuolo Spa
OBJECTIVE ACHIEVED
Organization of new community events at Florim Gallery OBJECTIVE ACHIEVED
Organization of Florim Family Day 2016 A PARTY WAS ORGANISED FOR EMPLOYEES
Social Responsibility
2016 Sustainability Report36
The targets we set for ourselvesWe aim to achieve the following objectives in 2017
Economic Responsibility
Construction of a new factory at Mordano to produce large slabs
Launch of the project to unite the Florim spa sales organizations
Total restyling of the corporate and brand Internet sites
Launch of the HUB project - Intranet CRM Marketing Automation
New plants at Florim USA a press two sorting lines a polishing and rectifying line
New working spaces and cloakrooms for technical staff at the American plant
Environmental Responsibility
Purchase of a new cogenerator for the Mordano plant
Introduction of a new rainwater collection system at Fiorano
Land reclamation project involving covering of the Rio Spezzano stream at Fiorano
Implementation of new software for continual monitoring of energy impacts at Fiorano
Modernisation of the compressor room to improve energy impacts at Mordano
Increase of recycling targets through constant awareness-raising amongst all staff and optimisation of recycling facilities
Continuation of replacement of the diesel forklift trucks for use on outdoor yards with electric vehicles
Social Responsibility
Improvement of corporate welfare through the activation of new free services and discounts tailored to employees needs
Continuation of the health meetings for the local community in association with Ospedale di Sassuolo Spa
Organization of new community events at Florim Gallery
Organization of a new event for Florim spa employees
New offices for hospitality and events staff at Fiorano
2016 Sustainability Report 37
FLORIM USA
Profile and Economic ResponsibilityFlorim USA with registered office at Clarksville - Tennessee - and its subsidiary Florim Solution Inc have been part of the Florim Group since 2000 The Florim USA manufacturing plant one of the largest most technologically advanced in the United States produces porcelain stoneware tiles for the residential market and undertakes commercial projects in North America During the last few years Florim USA has implemented a growth and process optimization strategy which has generated significant technological progress with more innovations planned for the future The strategy adopted will put Florim USA at the worldwide state of the art in porcelain stoneware tile manufacture
In 2016 of the 18 million USD invested 147 was allocated for installation of a latest-generation raw material handling system and a large spray-dryer with an innovative sorting system Improvements were made to other parts of the process to increase their efficiency leading to a further reduction in emissions and scrap rates Additional investments are planned during 2017 to continue this dual trend of rising production with mitigation of environmental impact
The new Florim Flagship Store in New York (152 Madison Avenue 32nd Street)
2016 Sustainability Report38
Environmental ResponsibilityFlorim USA implements the same environmental policy as Florim and is committed to achieving the following objectives
bull reduction of the energy used in the production processbull improvement of the waste management process with a focus on recovery and reusebull introduction of new more eco-efficient technologiesbull adoption of integrated management systems
Florim USA has been pursuing a strategy of careful management of its operations and environmental impact for a number of years Here we summarise the main actions taken and the results achieved in 2016
bull installation of a latest-generation spray-dryer in 2016bull installation of an innovative raw material handling system in 2016bull 100 recycling of wastewater within the processbull optimisation of the management of water bottles with elimination of about 34200 of them per annumbull reuse of almost all production scrap (+99)bull 157000 kg of cardboard recycled in 2016bull award of two different types of product certificationbull 9300 kg of plastic recycledbull recycling of 17 complete trucks of pallets
Environmental Projects and Awards
Florim USA has received Clarksville Montgomery County Green Certification (CMCGC) CMCGC is a program designed to help companies learn and implement best practices in the area of environmental stewardship to sustain the local communityrsquos resources through a series of free workshops taught by local environmental specialists Since 2014 Florim has allocated some of its Environment Managers time for the running of these workshopsFlorim USA earned this green company certification thanks to a large number of projects first and foremost the one which eliminated the use of disposable water bottles replaced with individual reusable bottles provided by the company and a series of fill-up stations About 34200 bottles are removed from the waste cycle every year
During the latest phase of its plant optimization Florim USA has implemented a thorough construction material reuse policy In the various stages of demolition of the old plants including the old storage silos the concrete debris was recovered and reused in other construction worksThis project alone generated 11500 tons of recycled aggregate as well as several hundred tonnes of metal sold to a recycling firm
Environmental management system and eco-compatible products
Florim USArsquos products help builders and designers to meet the requirements for sustainable buildings as defined by the United States Green Building Council (USGBC) through the LEED Green Building Rating System This protocol evaluates and certifies the environmental sustainability of a building as a unit from its design to its day to day management To gain LEED credits many of the Florim USA product lines contain a significant percentage of recycled material (40 or more)This feature contributes to an increase in the LEED score in the projects where these products are installed In 2014 Florim USA together with a large number of other US tile manufacturers and the Tile Council of North America drew up a type III environmental product declaration (EPD) certified under the ISO 14025 standard This ceramic tile life-cycle analysis enables Florim USA products to gain LEED points under the new LEED v4 protocol
2016 Sustainability Report 39
Water use (gallonsper million square feetof finished tiles)
208137 216246 204962 195280 194268
Energy use
2012 2013 2014 2015 2016
Cubic feet of natural gas per million square feet of finished tiles 9343383 9149721 8331170 8390503 8380000
kWh per million square feet of finished tiles 510972 491171 450594 465976 490300
Emissions
Particulate material lt 21024 tonnes per annum
SO2 (sulphur dioxide) lt 1674 tonnes per annum
VOC (volatile organic compounds) lt 1245 tonnes per annum
NOx (oxides of nitrogen) lt 1501 tonnes per annum
Environmental performance indicators ndash summary
The following are the main environmental indicators related to the impact and performance of Florim USA during 2016
Pre-consumer recycled material
Its internal material recycling processes enable the company to minimise its environmental impact since most of the material which would otherwise be sent to landfills or other waste treatment centers is reusedbull Wastewater is entirely recycled within the production process without any discharge into the municipal drainsbull The material in the collection bags from the tile body and glaze preparation areas the press and glaze application is entirely recycled within the processbull All scrap fired tiles are entirely recycled within the processbull 157000 kg of cardboard was sold to an external recycled material dealerbull 17 trucks of unusable wooden pallets were sold to a pallet regeneration companybull About 9300 kg of waste shrink-wrap plastic film was recovered and recycled
Post-consumer recycled material
About 82000 kg of glass was removed from the flow of waste destined for the local landfill and recycled within the process Florim USA has signed an agreement with the local landfill for consignment of all the glass it handles which is collected and set aside for recycling
Water use disposal and reuse
The water used during the production process is recycled continually therefore no water is discharged into the municipal drains
The 2016 emissions figures are in line with those for previous years well below the standards laid down
Water use 2012 2013 2014 2015 2016
Water use (gallons per million square feet of finished tiles) 216246 204962 195280 194268 203928
2016 Sustainability Report40
Social Responsibility
Employees
The Florim USA workforce comprises 348 staff employed at the production site the Clarksville and Nashville outlet stores and the Florim Solution offices Of the 348 employees 273 are blue-collar workers and 75 office staff 5 employees are Italians on secondment to the United States Florim USA offers a number of benefits to full time employeesbull health and dental care insurancebull Vision insurancebull life insurance for employees and optionally for family membersbull temporary and permanent disability supportbull employee pension plan
2012 2013 2014 2015 2016
Workplace injuries 50 41 22 29 27
The Employee Assistance Program (EAP) also offers support to employees and their families in the event of psychological difficulty or other problems that can have a negative impact on their quality of life Florim USA supports all the costs of the program
Equal opportunities
Florim USA provides equal opportunities in all employment practices to all qualified employees and applicants regardless of race colour religion gender national origin age disability or membership of the armed forces or any other category protected by federal state or local laws
Health and safety
FLORIM USA is committed to ensuring a safe healthy workplace for all employees It therefore replaces old and obsolete equipment with new technologically more modern machinery and updates safety plans as new information gradually becomes availableAs well as an internal supervisor Florim USA has also appointed a health and safety committee which constantly monitors the plans effectiveness and makes any changes requiredThere are currently 20 plant employees who hold CPRfirst aid qualifications They occupy a variety of positions and work different shifts within the plant and have volunteered to attend training courses sponsored by the company for the award of these qualifications
Training
In 2016 every Florim USA employee attended an average of about 25 hours of training The training provided covered the operating procedures for the new equipment the main safety plans and the procedures for use of existing equipment for new employeesAll new staff undergo specific training for their department focusing on the safety-related aspects of the department concerned as well as more generalized safety training
Some of these themes includebull safe correct use of forklift trucksbull training on work in confined spacesbull shutdownwarning procedures and safe electrical practicesbull safe lifting procedures
2016 Sustainability Report 41
Florim USA ndash (Clarksville Tennessee)
For employees wishing to continue their education Florim USA offers assistance through the Educational Assistance Program It provides aid with the cost of education and textbooks and is available for any employee wishing to study for a technical qualification a diploma or a degreeThe plant staff training and education plan also includes various training schemes at Florim Italy where employees are instructed in the use of new equipment before it is installed at the American plantThroughout 2016 Florim USA will continue to provide a free e-learning course on its website for architects engineers and contractors (AEC) to improve their knowledge of sustainable porcelain stoneware tiles
Employee welfare activities
Florim USA employee picnic - In 2016 the company once again held its annual picnic for employees offering them a wide variety of foods games activities and live shows in an event which provided an unforgettable days enjoyment Within the event participants received prizes in the form of vouchers and gifts
Employee anniversary dinner - 2016 again saw the usual dinner to honour Florim USA employees with 5 10 15 20 or more years of service A special evening event was held in the presence of the Chairman and the other managers to celebrate the loyalty and hard work these employees have contributed during their careers with the firm
2016 Sustainability Report42
Local Community
During 2016 Florim USA continued to provide its support to a number of projects in its local areaSome of the main projects include
Scholarships - As part of its work to support the local community Florim has an established scheme which awards scholarships to deserving students at the Austin Peay State University in memory of Florim Group founder Giovanni Lucchese In December 2016 a delegation of Florim representatives attended a scholarship presentation lunch at the Austin Peay State University hosted by the President of the University
Montgomery County Green Certification Program - Florim USA staff actively participate in the Montgomery County Green Certification Program which aims to help companies learn and implement best practices with regard to safeguarding the environment and environmental resources
Donations - In 2016 the company again made a large number of donationsbull book collection for the Austin Peay State University Employees made a generous donation of used books in good condition for children and young people of the APSU in the hope of further promoting the education of future generationsbull to Community Cares the national organization that promotes the acceptance and social inclusion of individuals with Downs Syndromebull to the Aspire Clarksville Foundation a 501(c)(3) charitable foundation whose mission is to continuously improve the economy and the livability (quality of life) of the community by attracting significant capital investment and expansion by businesses and corporations thereby creating better opportunities and higher paying jobs for residentsbull to the Alzheimerrsquos Association a non-profit voluntary organization dedicated to the care and support of Alzheimers Disease sufferers and research into the condition Its aim is to eliminate the disease through the advancement of research to provide and enhance care and support for all affected and to reduce the risk of dementia through the promotion of brain health
Other activities - Every year Florim USA participates in the United Way Drive initiative to support local non-profit organizations which provide economic assistance and psychological support to persons in difficulty
Florim USA provides regular support to the Salvation Army by collecting canned foods for persons in needIn 2016 the company again organised a canned food collection for Manna Cafeacute in Clarksville TN Manna Cafeacute is a local non-profit organization based in Middle Tennessee with the primary mission of meeting peoples fundamental need for food before encouraging them to permanently change their lives for the better More than 15 of the population in Montgomery County are affected by food insecurity (about 28000 people) The percentage of children affected is about 215 a third of whom are excluded by income from federal programs such as free school mealsFinally donations were made tobull American Lung Association the leading organization working to save lives by improving lung health and preventing lung disease through research and educationbull Cheer for a Cure an organization that gives money directly to afflicting families who have a loved one suffering from cancer and need assistance to alleviate the added financial stressbull Habitat for Humanity Since 1992 Habitat for Humanity in Montgomery County Tennessee has worked with 93 low-income families with more than 210 children to revitalise various parts of Clarksville-Montgomery County by building new homes
2016 Sustainability Report 43
Quality SystemFlorim USA works under a Quality System certified to UNI EN ISO 9001 standards The following are some of the figures in brief
Objective Indicator 2012 2013 2014 2015 2016
Optimisation of control of the production process
Percentage of First Grade Product ()
932 917 940 949 9510
Quality rate () 883 857 893 906 909
Scrap rate () 56 65 48 45 45
KeyPercentage of first grade product ratio between square feet of first grade material and total square feet transferred to stockQuality rate ratio between square feet of first grade material transferred to stock and square feet pressedScrap rate ratio between square feet pressed and square feet of product actually transferred to stock
Other ActivitiesFlorim USA and trade shows
In 2016 Florim USA participated at a number of shows and events including Coverings the AIA Tennessee Convention Hardscape North America Total Solutions Plus Neocon International Pool - Spa and Patio Expo These events targeted at the various categories of industry professionals such as dealers and designers gave Florim USA the opportunity to present its new range of indoor and outdoor products
Design Center
In December 2015 Florim USA opened a design center showroom in Nashville (TN) in a strategic location close to the airport and the city center With a spacious area to host individual CEU presentations and workshops this design center has the potential to be a major resource for local architects In 2016 it was also awarded the ldquoOutstanding Boothrdquo booth prize at the 33rd edition of the Annual Home Decorating and Remodeling Show The location is the ideal place for sharing ideas finding inspiration and putting professionals and architects in touch with each other
Florim Nashville Design Center
2016 Sustainability Report44
GRI International Sustainability Indicators SDGsThe information below illustrates the correspondence between the Florim (Italian companies) 2016 Sustainability Report the GRI-G4 guidelines and the icons of the Sustainable Development Goals (SDGs) definitively adopted by the United NationsA description of the SDGs is available at wwwglobalcompactnetworkorg
GRI indicators
Description Page Reference to SDGs
1 Strategy and Analysis
G4-1 Statement from the most senior decision-maker of the organization 5
2 Organization profile
G4-3 Name of the organization 2
G4-4 Primary brands products andor services 9
G4-5 Location of the organizations headquarters 9
G4-6 Number and names of the countries where the organization operates 9
G4-7 Nature of ownership and legal form 14
G4-8 Markets served 9
G4-9 Scale of the organization 8 8
G4-10 Significant changes regarding size structure or ownership 8
G4-11 Employees covered by National Collective Bargaining Agreement 27
G4-12 Describe the supply chain 16
G4-13Significant changes regarding the organizationrsquos size structure ownership or its supply chain
Reporting process
launched
G4-14 Precautionary principle 22
G4-15 List of external commitments in which the company is involved 22 32 33
G4-16 Associations or interest groups in which the company is involvedwwwflorimit gt
about us gt partnerships
3 Identified material aspects and boundaries
G4-18 Process used to define the report content 6
G4-19 Material aspects 16
G4-20 Boundaries of each material aspect 6
G4-21 Boundaries of each material aspect outside the organizationPartial reporting
(pages 6 16)
G4-22 Explanation of the effect of any restatements of information provided in previous reports 6
G4-23Significant changes from previous reporting periods in the scope boundaries or measurement methods
6
3 Stakeholder engagement
G4-24 List of stakeholders 15
G4-25 Identification of stakeholders 15
G4-26 Stakeholder engagement 6 16
G4-27 Key topics and concerns that have been raised through stakeholder engagement 16
4 Boundary of the Report
G4-28 Reporting period 6
G4-29 Date of publication 2
G4-30 Reporting cycle 6
G4-31 Contacts and addresses for additional information 46
5 GRI Content Index
G4-32 Reporting option chosen 6 7
G4-33 External assurance of ReportThe Report is not
externally assured
2016 Sustainability Report 45
GRI indicators
Description Page Reference to SDGs
6 Governance
G4-34 Governance structure 14
7 Ethics and integrity
G4-56 Values principles standards and norms of behavior 13 16
Economic performance indicators
EC1 Direct economic value generated and distributed 19 25789
EC5 Wages 27 158
EC7 Development and impact of infrastructure investments and services supported 23 24 31 257911
Environmental performance indicators
G4-EN2 Percentage of materials used that are recycled input materials 17 22 23 812
G4-EN3 Energy consumption within the organization 24 781213
G4-EN6 Reduction of energy consumption 17 24 71213
G4-EN7 Reductions in energy requirements of products and servicesPartial reporting
(page 22)71213
G4-EN8 Total water withdrawal by source 17 23 6
G4-EN10 Percentage and total volume of water recycled and reused 17 21 23 612
G4-EN11 Biodiversity 23 615
G4-EN15 Total indirect greenhouse gas emissions by weight 25 3121315
G4-EN16 Total indirect greenhouse gas emissions by weight 25 3121315
G4-EN19 Reduction of greenhouse gas emissions 8 24 1315
G4-EN21 NOx SOx and other significant air emissions 25 31215
G4-EN22 Total water discharge by quality and destination 23 6
G4-EN23 Total weight of waste by type 17 22 3612
G4-EN27 Impact mitigation of environmental impacts of products and services 23 68121315
G4-EN29 Monetary value of significant fines 22 16
G4-EN30 Significant environmental impacts of transporting products and goodsmaterialsPartial reporting
(page 25)111213
Social performance indicators
G4-LA1 Total number and rates of new employee hires and employee turnoverPartial reporting
(pages 17 27)8
G4-LA6 Workplace injury ratesPartial reporting
(page 17)38
G4-LA9 Average hours of training per year per employee 28 48
G4-LA12Composition of governance bodies and breakdown of employees according to gender age group etc
27 58
G4-LA13 Ratio of basic salary and total remuneration of women to men 27 5810
Society
G4-SO1 Operations with local community engagement 12 31 16
G4-SO3 Operations assessed for risks related to corruptionPartial reporting
(page 13)
Product responsibility
G4-PR1 Assessment of health and safety impacts for improvement 23 32
G4-PR3 Type of information about products and services required by the procedures 32 12
G4-PR5 Proceedings relating to customer satisfaction including surveys conducted to measure it 33
G4-PR6 Sale of banned or disputed products 32
G4-PR8 Number of substantiated complaints regarding breaches of privacy 32 16
2016 Sustainability Report46
Your Assessment
You are kindly requested to take a few minutes of your time to give us your assessment and any suggestions to enable us to improve future editions of our Sustainability Report
Click here to send us your feedback
To keep up to date with our business
Spazio CEDIT - interior (Milan)
wwwflorimiten
Florim Ceramiche
Florim4Architects
Florim_ceramiche
Florim Ceramiche spa
Florim Ceramiche
Florim Ceramiche
For any further information please feel free to contact our communications department comunicazioneflorimit
2016 Sustainability Report 47
Premio Lucchese - Florim Gallery (Fiorano Modenese - Modena Italy)
Intrapresaelig Guggenheim Collection - Massimo Bottura in Florim Gallery (Fiorano Modenese - Modena Italy)
Panathlon Christmas Gala - Florim Gallery (Fiorano Modenese - Modena Italy)
2016 Sustainability Report48
White Christmas Party - Florim Gallery (Fiorano Modenese - Modena Italy)
Cersaie - Mario Biondi in Florim Gallery (Fiorano Modenese - Modena Italy)
Dal buio alla luce - Social event at Florim Gallery (Fiorano Modenese - Modena Italy)
2016 Sustainability Report 49
Florim Gallery entrance (Fiorano Modenese - MO)
2016 Sustainability Report52
Florim Ceramiche spaVia Canaletto 24 - 41042 Fiorano Modenese (Modena Italy) - Tel +39 0536 840111 - wwwflorimit
2016 Sustainability Report 15
StakeholdersStakeholders are all individuals and groups who may influence or be influenced by a companys operations in terms of policies products and working processes shareholders employees customers and consumers suppliers local government the local community banks and trade unions
Employees and Trade Unions
Florim makes the following commitments to its employees
bull to guarantee equal opportunities fair pay and professional growth
bull to reward its human resources on the basis of transparent meritocratic criteria
bull to create safe working environments and processes
bull to guarantee transparency and clarity in contract conditions
bull to encourage dialogue and internal communications
Customers and Consumers
In dealing with its (retail) customers Florim is committed to
bull creating a relationship of trust as a stable basis for business
bull guaranteeing clarity in contracts and prices
bull guaranteeing the reliability of its products and developing customer service
bull offering innovative safe environmentally sustainable products
bull providing a diversified offering with services with high value added
The overall aim is also to satisfy the expectations and demands of the final consumer
Developers Architects and Interior Designers
To meet the needs of developers Florim is committed to
bull offering state-of-the-art solutions in terms of environmentally sustainability technology and design
bull establishing and fostering relationships with partner professionals
bull providing consulting and technical experience from the project concept through to installation
bull supplying turnkey solutions
Local Communities and Local Government
In its relationships with local communities and local institutions Florim is committed to
bull guaranteeing dialogue cooperation and transparency
bull giving value back to the local communities in the areas where it operates
bull continually improving the environmental performances of processes
bull researching developing and using the most sustainable technologies
bull making an economic contribution to local sporting and social projects for children and young people
Suppliers
When selecting its suppliers Florim pays close attention to companiesrsquo CSR practices Florims relationships with its suppliers are based on compliance with the values of its code of ethics otherwise contracts are automatically terminated Florim also guarantees certainty in payment times and compliance with contract terms provided the goods and services contracted are delivered as agreed
ERMES GIUSEPPE FERRARI Managing Director
GIOVANNI GROSSI Managing Director
OSCAR ISEPPI Managing Director
DORVAN SAZZI Managing Director
STEFANO TORRENTI Managing Director
2016 Sustainability Report16
Materiality ApproachIn 2015 the company began an internal analysis process based on the materiality principle in order to identify the sustainability issues of relevance both for the Group (including Florim USA) and for all stakeholders Materiality is the threshold above which a topic becomes sufficiently important to be included in the report In fact organizations are faced with a large number of topics on which they could report Relevant topics and indicators are those considered important for reflecting the organizations economic environmental and social impacts or which influence the decisions of its stakeholder and which therefore potentially merit inclusion in the report In accordance with the GRI ndash G4 Guidelines Florim has analyzed and identified relevant topics which were assessed by the working team which drafted the Sustainability Report on the basis of discussion with the main stakeholders The findings which emerged were supported by a qualitative survey external to the companys context examining an analysis of the press gallery (more than 650 articles) competitors Sustainability Reports the Emas Study of the Fiorano and Sassuolo Ceramics District and the GRI document ndash ldquoSustainability Topics for Sector What do Stakeholders want to knowrdquo
In the chart below the aspects found to be most important appear in the top right-hand corner and constitute a strategic priority for the Group The topics in the bottom left-hand corner such as biodiversity prevention of corruption and absence of discrimination are less relevant because they are easy for both the organization and stakeholders to manage and no problems have ever been reported over the years Similarly the protection of human rights is now taken for granted since Florim complies strictly with all the provisions of the National Employment Contract
Importance for stakeholders
Importance for Florim spa
low
m
ediu
m
high
low medium high
Biodiversity
Indirect economic impacts
Prevention of corruption
Market share
Absence of discrimination
Sustainable transport
management
Protection of Human Rights
Environment and safety
Water saving
Energy efficiencyRaw materials
Diversity and equal opportunities
Transparency of financial and other
information
Ethical supplier
management
Investments in the local community and social welfare
Direct and indirect environmental
impacts
Green products and
services
Economic performance
Quality of products offered to customers
Regulatory compliance
Development of human resources
and training
ENVIRONMENT
COMMUNITY
EMPLOYEESASSOCIATES
ECONOMIC PERFORMANCE
PRODUCT RESPONSIBILITY
HUMAN RIGHTS
2016 Sustainability Report 17
FinFloor consolidated (in thousands of Euro) 2012 2013 2014 2015 2016
Net earnings 315344 325853 329533 374094 406759
EBIDTA 59608 72986 84395 98115 107186
Operating result 35717 50996 58508 66255 71028
Gross cash flow 52710 68312 83274 97268 109148
Net profit 26103 35732 36433 43324 49347
Net financial indebtedness (127730) (96500) (54524) (27326) (12508)
Final inventory 95514 84432 90283 92795 96721
Net shareholders equity 186905 218847 276916 332721 369937
Total investments 32572 48780 41584 34215 53531
2012 2013 2014 2015 2016
Waste produced (t) 30228 21170 22300 30862 34423
Recycled third-party waste (t) 4028 4190 1721 2570 5627
Total water consumption (msup3) finished product (t) 075 075 078 069 071
Recycled water percentage 100 100 100 100 100
Self-generated energy in relation to consumption 67 68 62 65 75
Investments in environmental management (euro000) 13617 2493 1995 465 6400
2012 2013 2014 2015 2016
Number of employees at 3112 1037 992 984 982 987
Total number of training hours 14690 9124 9056 7176 10606
Number of training hours on environment and safety 7572 4514 4200 3008 2489
Number of workplace injuries 63 62 74 56 43
Environmental and social profile figures refer to Florim Italy for Florim USA please see the relevant section (from page 37)
REPORTING
In brief
Economic Profile
Environmental Profile
Social Profile
2016 Sustainability Report18
Economic Responsibility
Comments on 2016 Economic Data
The Groups 2016 results were again good from every point of view
Compared to the previous year turnover increased by 87 leading thanks to careful management of production costs to an EBITDA of Euro 1071 million equivalent to 263 of turnover and a profit after tax of Euro 493 million
The companys financial data also significantly improved with a net financial position of Euro 125 million compared to Euro 273 million at the end of 2015 in spite of record technical investments of Euro 535 million and financial investments of Euro 11 million
Once again underlying the results achieved were large investments in latest-generation machinery and technologies painstaking research to develop materials with exceptionally high technical and design content human resources and projects for the increasingly direct promotion of Florims image and quality standard
Investments
The technical investments made in 2016 amount to Euro 535 million while Euro 11 million was spent on reacquiring 100 ownership of Maker srl followed by its amalgamation with Florim spa on 31 December The most important industrial projects included the continuation of the work on the Mordano plant which involved investments of Euro 26 million for the restructuring of the raw material preparation area and the doubling of production capacity for traditional porcelain stonewareThe investments of US$ 18 million at Florim USA were utilised to complete the renewal of the raw material preparation area and construct a new building for the technical organizationFinally about 9 million Euro was invested at Fiorano on various production line modernization projects
A creative hub for design style and new trends Milan once again confirms that it is the ideal setting for Florims investments and the opening of the all-new ldquoSpazio CEDITrdquo confirms the companys determination to strengthen its bonds with design professionals working in high-end interior design The culture of beauty art architecture and design are all integral to the genetic make-up of CEDIT ndash the historic Italian brand relaunched by Florim in 2016 ndash and dominate the display areas and the first six ceramic covering collections styled by famous names on the contemporary creative sceneOn two levels with a total floor area of more than 200 msup2 the space maintains the same stylistic identity as the one at Fiorano Modenese since they are both constructed to an architectural design intended to be replicated in CEDIT customers showrooms worldwide
Spazio CEDIT Watch theinauguration video
2016 Sustainability Report 19
Economic Value Generated and Distributed
The figures for the economic value generated and distributed provide a simple clear explanation of how Florim has created wealth and redistributed it to its stakeholders The table below contains the data from Florims 2016 financial statements approved by the Board of Directors on 30 March and certified by external auditorsThe economic value directly generated is represented by the total earnings for 2016 while the economic value distributed includes the costs incurred for suppliers and employees payments to the state (taxes) and the donations which had positive repercussions for the community to which Florim spa belongs
Heading 2014 2015 2016
Revenues 253125 269855 302521
Direct economic value generated 253125 269855 302521
Operating costs 135735 150951 168809
Employee wages and benefits 56985 58149 62418
Payments to providers of capital 7413 6399 11903
Payments to government 15738 13162 15382
Community investments 221 212 240
Economic value distributed 216092 228873 258752
Economic value retained 37033 40982 43769
KeyRevenues net sales plus revenues from financial investments and sale of assetsOperating Costs payments to suppliers non-strategic investments royalties payment facilitationsEmployee wages and benefits employee wages and benefits per employees (current payments)Payments to providers of capital all payments to the organizations providers of capitalPayments to government gross taxes and dutiesCommunity investments voluntary donations and investments in the communityEconomic value retained calculated as economic value generated less economic value distributed
The data in the table are in thousands of Euro and refer to the consolidated financial statements of the Italian companies only
KBIS (USA) - detail of the stand created with ldquoI Classici di Rexrdquo
2016 Sustainability Report20
Casa dolce casa ndash Argille 20 Collection
2016 Sustainability Report 21
Environmental ResponsibilityEffective environmental policy management energy saving and emissions reduction are amongst Florims strategic sustainability objectives
Our green projects in figures
2 highly-regarded process certifications
ISO 14001 (ENVIRONMENT)and ISO 50001 (ENERGY)
849873 MWh is the amount of electricity the
company succeeded in producing in-house during 2016
2 departments (marketing and communications)
engaged on digitizing advertising tools
8462 tons of CO2 NOT emitted
CO2
100 is the percentage of wastewater recycled
16000 msup2of photovoltaic panels covering
an area of 30000 msup2
75 is the percentage of the electricity consumed which is
produced in-house
4 latest-generation industrial kilns installed in
the last 3 years
4 different types of environmental product
certification
2 cogeneration plants to increase energy saving
and efficiency
1 laboratory for the development of contemporary design projects with a specific focus on the materials green
content
100is the percentage recycling of
industrial greenware waste in the production process
2016 Sustainability Report22
Certifications
System and process certifications
UNI EN ISO 14001TUumlV has awarded Florim the highly-regarded UNI EN ISO 14001 voluntary certification which confirms its compliance with a series of internally certified procedures intended to improve the internal environmental management system The decision to seek this certification springs from the desire to reconcile quality with efficiency and productivity while protecting the environment and community in which the company operates
UNI EN ISO 50001Thanks to a careful energy management policy and aided by the latest investments in the production area also intended to improve energy efficiency Florim was the worlds first ceramics manufacturer to obtain ISO 50001 certification of its Energy Management System
In addition to its environmental certifications Florim has also been awarded prestigious AEO (Authorized Economic Operator) status
Further to a lengthy and demanding audit process by the Customs Authorities in 2016 Florim was awarded AEO certification the first company in the Province of Modena to receive this major form of approval Authorised Economic Operator status guarantees the companys absolute compliance with customs and security requirements in its foreign trade
Environmental Management
Waste 2012 2013 2014 2015 2016
Total waste produced (t) 30228 21170 22300 30862 34423
Non-dangerous recyclable waste (such as paper and cardboard fired scraps plastic glass and wood) ()
989 982 985 991 989
Non-dangerous disposed-of waste (such as the waste picked up by the motor sweepers) ()
02 04 02 02 02
Dangerous recyclable waste (such as spent oil batteries and monitors) ()
00 01 01 01 00
Dangerous disposed-of waste (such as spent lime) () 01 13 12 07 09
Third-party waste recycled within the production process (t) () 4028 4190 1721 2570 5627
Besides recycling greenware waste from its own production cycle (not included in the table because the amount cannot be calculated) Florim also recycles third party waste
Florims operations have always been oriented towards optimization of impact on the local community and environment Thanks to the work of its research laboratories the support of all staff and the recent investment plans tangible results have been achieved The data provided below reveal that in spite of an increase in production of 8 compared to the previous year consumption remains low The companys commitment to environmental protection is all-inclusive and also comprises a focus on the district within which it operates One example is the total removal of all asbestos cement from the Fiorano Modenese plant and the creation of the new recycling station opened in 2015 and donated to the Local Authority as a public serviceAs in previous years during 2016 Florim was not fined for any breaches of environmental regulations or laws
Florim recycles and optimises within the production process all greenware scraps dust residues from filters and sludge from the process and rectification wastewater treatment system The waste produced is detailed in the table the significant differences between years are due mainly to the major demolition and subsequent reconstruction works undertaken at the Italian plants
Waste Management
2016 Sustainability Report 23
Water Resources
No environmental impact of wastewater discharges is specified since all the water from the production cycle is completely reused (100) All other effluents comply with legal requirements
The figure states the total cubic meters of water used per ton of finished product The water used in the Fiorano production process is drawn from private company-owned wells with water from the public main only used for non-industrial purposes The Mordano plant is supplied by an industrial water main Water use is measured by means of meter readings Four highly innovative dry rectifying plants have gone into production at Mordano since 2015 enabling the company to eliminate the physicalchemical treatment of the water used in the rectification process
WATER USE
2012
08
2013
08
2014
08
2015
07Total water consumption (msup3) finished product (t)
07
2016
All packaging used for Florim materials is made from recycled paper and parts of the coverings used to protect pallets of finished products consist of recycled plastic Whats more all the packaging used (boxes cardboard shrink wraps pallets etc) can be completely recycled by the end user The latest investments made include new eco-friendly packaging machines increasing the number of these machines installed to 15 These plants completely eliminate waste due to leftover inventory saving significant amounts of cardboard
Packaging and Coverings
As the materiality assessment states Florim has no significant impacts on the biodiversity of its local area since the company is located inside the Fiorano Modenese ceramics manufacturing district at least 5 Km from the nearest nature reserve at Salse di Nirano Florim takes special care over the choice of the raw materials used for its tile body mixes of which it is required to provide documentation guaranteeing compliance with the European Directives protecting wild birds (EU Dir 79409EEC) and habitats (EU Dir 9243EEC) and the United Nations Convention on the protection of biodiversity It has also introduced a software program - used at the 3 production plants (Italy and the USA) - for the management of data on the origin of raw materials such as quarry location distance from the factory recycled content declaration technical safety and radioactive content data sheets and the expiry of the quarrying permit issued by the government
Raw Materials and Biodiversity
2016 Sustainability Report24
Energy Management
There is no disputing that large amounts of energy are required to power the production processes of ceramic tile plants with consequent direct and indirect impacts on the local area and the environmentThe main indicator used to measure plants energy performance is the mean specific total energy consumption (TEJ) measured in GJt of product transferred to stock As the table below shows this figure is obtained by adding together heat consumption (NGJ) and electricity used (EEJ)
Parameter ndash Definition Unit of measurement
2012 2013 2014 2015 2016
NGJ Mean specific natural gas consumption in relation to the unit of weight of finished product transferred to stock
GJt 557 571 576 578 598
EEJ Mean specific electricity consumption in relation to the unit of weight of product transferred to stock
GJt 111 108 111 108 107
TEJ Mean total specific energy consumption in relation to the unit of weight of product transferred to stock
GJt 668 679 686 685 705
Self-generated electricity as a proportion of consumption
67 68 62 65 75
With two cogeneration plants (for the combined in-house production of heat and electricity) and 16000 msup2 of photovoltaic panels the company certainly sets a new benchmark for the entire ceramic tile industry 2016 saw the replacement of the Fiorano turbine set (the main component of the cogeneration plant) while the one in Mordano was kept in operation 247 factors which led to a 10 increase in in-house electricity production in relation to consumption To provide a clearer idea of the scale of the achievement the amount of electricity the company generated in-house in 2016 (849873 MWh) would cover the average annual consumption of about 37000 households (With consumption per household of 229 MWh - data from the latest ISTAT survey in 2012ndash calculated on the Italian average)
Photovoltaic Plant
kWp kWh produced kg of CO2 not emitted
270021 15937250 8462680
Good Practice
The head office organizations are also optimizing paper and energy consumption In addition to issuing and distributing the energy saving handbook for its offices the company is also trying to maximize savings on the raw material used and specifically the use of paper Internally the company only purchases reams of paper which carry environmental certification and the paper used in offices is collected separately for proper disposal Externally the company distributes a system of merchandising products made mainly from recycled paper and encourages the gradual digitization of its marketing tools as well as publishing all its catalogues in digital format on its Internet sites Florim offers its distributor companies an innovative digital touch screen tool with the pdf versions of the catalogues and other tools for the final consumerIn 2016 Florim decided to adopt a new payslip distribution procedure introducing an online processing system As well as providing employees with new functions and greater operating flexibility thanks to this system the company no longer prints out the monthly payslips saving paper ink and energy The scheme initially involving all office workers has the ambitious target of also including the staff of the Fiorano and Mordano plants
The 16000 square meter photovoltaic plant received recognition from GSE (Energy Management Services) as one of the most innovative installations of its type and from its commissioning (October 2011) up to December 2016 it produced the following results
2016 Sustainability Report 25
Atmospheric Emissions
The industrial facility emits greenhouse gases basically CO2 from the following main sourcesbull combustion from the burning of fossil fuels (such as natural gas)bull processes from the minerals in the raw materials any organic matter in the clays used and any organic additives in tile body mixes
In order to comply with Directive 200387EC (ETS - Emission Trading Scheme) Florim has been reporting and certifying its CO2 emissions since 2013
CO2 emissions 2013 2014 2015 2016
CO2 emissions (t) 102728 103462 111862 132960
CO2 emissions (t) Finished product (t) 033 033 033 035
Emissions from the production cycle 2013 2014 2015 2016
Particulate material (gmsup2 finished product) 223 130 098 118
Lead (gmsup2 finished product) 000 000 000 000
Fluorine (gmsup2 finished product) 014 018 013 012
The increase in CO2 is due mainly to the large increase in the square meters produced (+ 8) and the 247 use of the cogeneration plant However it should be noted that the cogeneration plant provided a 10 increase in in-house electricity generation with lower CO2 emissions than electricity purchased from the grid produced mainly using fossil fuels (source ISPRA Fattori di emissione atmosferica di CO2 e sviluppo delle fonti rinnovabili nel settore elettrico Rapporti [Atmospheric CO2 Emission Factors and Development of Renewables in the Electricity Sector Reports] 2122015)The ratio between CO2 emissions and tons of finished product produced increased because in 2016 the sale of spray-dried material to other companies rose compared to the previous year (emissions from this phase are included in the emissions count but there is no corresponding output of finished product)
In a change from previous years the new GRI-G4 guidelines also require reporting of nitrogen oxide and sulphur oxide emissions Nitrogen oxide (NOx) emissions are within the limits permitted under the integrated environmental authorisation Sulphur oxide (SOx) emissions are not reported here since this figure is not required by the IEA
Transport
The materiality study reveals that transport is a significant factor for both stakeholders and Florim itself The company is not able to measure the impact of transportation of finished product on the local area since all shipments are ex-works However Florim which has been introducing electric vehicles to replace its oldest most obsolete unleaded petrol forklifts for years now has further optimized the handling of materials thanks to the new highly-automated logistics hub created at the via Canaletto location In 2016 about 53 of the vehicles used on the companys premises were electric with no direct greenhouse gas emissions
2016 Sustainability Report26
CEDIT ndash Creative Composition
2016 Sustainability Report 27
Workforce Composition
In 2016 the workforce included 27 people with disabilities 6 women and 21 menBearing in mind the job descriptions arising from the specific industrial sector the breakdown between men and women is in line with the industry average Male office workers and executives earn an average of 10 more than women for jobs of equal responsibility Among blue-collar workers the difference is 7 The company had a total of 29 foreign employees 24 at Fiorano and 5 at Mordano
Manager Executive Office worker
2013 2014 2015 2016 2013 2014 2015 2016 2013 2014 2015 2016
Women 2 3 3 3 3 1 1 1 137 142 133 149
Men 18 21 20 18 21 24 25 28 127 132 128 132
Total 20 24 23 21 24 25 26 29 264 274 261 281
Office ancillary Blue-collar worker Total
2013 2014 2015 2016 2013 2014 2015 2016 2013 2014 2015 2016
Women 18 16 25 19 226 219 212 196 385 381 375 368
Men 64 68 79 64 376 358 356 377 607 603 607 619
Total 82 84 104 83 602 577 568 573 992 984 982 987
Social Responsibility
Employees amp Corporate welfare
Its employees are the heart and soul of Florim they provide its character and its DNA Since 2009 when the current major economic crisis began Florim has undertaken a number of income support programs for its workforce Below we summarise some of the ongoing programmes and others run in 2016bull Ending of the Income Support Program for the Mordano plantbull Agreement with Sassuolo Hospital under which Florim employees and their family members enjoy discounts and shorter waiting times for specialist examinations and outpatient diagnostic tests performed on a private basisbull Special agreements with local health facilitiesbull Tax advice at special rates bull Special terms for banking services with financial consultants on-sitebull Discounts on the purchase of Florim products for employees homesbull Free entry to the Peggy Guggenheim Collection in Venice for employees and concessions for family membersbull Free provision of water and mineral salts in the plants during the summerbull Distribution of fuel vouchers to employees for the Christmas holidays
Summer Play Schemes and Cregraveches
In 2016 the summer play schemes for the children of employees at Fiorano and Mordano were continued for the fifth year in succession Seven different centers across the area between Modena and Bologna hosted 85 children (twice the number of the previous year) the company paid the fee for two weeks attendanceWhats more since 2013 the company has negotiated special terms with local cregraveches which now offer a number of places for employeesrsquo children at a reduced fee
2016 Sustainability Report28
Human Resources Management Policies
In July 2015 on renewal of the in-house supplement to the national employment contract the Management introduced a new phase in its relations with the Trade Unions with the aim of continuing and improving the good relationships enjoyed for decadesThe new company contract applied for all employees at the Fiorano headquarters includes more facilitations for part-time working the willingness to allow flexitime where feasible and the commitment to invest in staff training in order to generate full benefits from intellectual capital The company and the trades unions agreed on a plan to improve efficiency fundamental for maintaining the current level of competitiveness by establishing improvement in Production Efficiency and EBITDA as criteria for the payment of the new Performance Bonus The individual Attendance Score is considered together with these parameters The 2016 Performance Bonus in its first year of application was 20 higher than that paid in 2015 In addition in response to employees requests the Company increased the number of approved canteens extending the choice available and also introduced weekly laundering of work clothing for all production workersWith regard to applications for severance pay advances the Company confirms its commitment to continuing the policy implemented so far
Training
Florim believes that in-house training plays a key role in the companyrsquos development and provides a tool for stimulating and fulfilling the potential of its human resourcesMore than 10600 training hours were provided in 2016 to 847 people with an average of more than 11 hours of training per employee New projects included a 6-month on-line English language course which attracted a large number of participants and two highly structured training courses for the sales division and the communication department A retraining program for workers at the Mordano plant was also completed it comprised 4 technical courses attended by 31 people for an average of 13 hours per person Another new entry for 2016 was an innovative procedure for acquiring information about training needs using an on-line questionnaire available to all employees as well as line managers specific recommendations The Master in Florim project is discussed in depth in the specific section
Health and Safety
Florim was the first Italian ceramics manufacturer to receive BS OHSAS 18001 (Occupational Health amp Safety Assessment Series) certification from TUumlV this international standard certifies the implementation of an internal management system oriented towards occupational health and safetyThis major award confirms the companys constant commitment to the well-being of its employees Every year in addition to engineering inspections and machinery maintenance a number of hours of safety training are organised to raise awareness among workers and supervisors Specifically in 2016 2849 hours were dedicated to safety training and a significant reduction in injury rates was recordedMoreover BLSD refresher courses are continuously held for the team of Florim employees trained in first-aid operations and the use of the defibrillators available on site
2012 2013 2014 2015 2016
Number of workplace injuries 63 62 74 56 43
2016 Sustainability Report 29
The Master in Florim organized for the fourth time in 2016 is a vocational training project which aims to bridge the gap between education (high school or university) and the world of work The program which is one of the companys Social Responsibility projects sets out to help young people to get to know the company through a well structured work experience plan It offers a distinctively northern European approach with a method which alternates classroom teaching with internships in the various areas of the company Participants new university or high school graduates specialising in various subjects all below 30 years of age are therefore able to gain hands-on experience of all Florim departments from RampD to the production process and product distribution for an all-inclusive vision The MASTER courses ambitious aim is to match the individual participants talents with the companys real needs At the end of each edition the company hires all or some of the selected candidates enabling it to acquire new skills new experiences and new energy
Master 40 in figures
20 young people taking part6 months of training13 external lecturers264 hours of classroom teaching392 hours of practical training4 company visits (Ferrari Tetrapak Cremonini and Ducati)50 days of work experience on rotation involving 15 departments1 month of project work
The projects prestige is enhanced by its economic context since Florim pays the young participants for the entire period and its aim is to deal with the thorny problem of youth unemployment The Master has won approval from various faculties at major Italian universities The project was also a winner in the Emilia-Romagna Regions 2016 awards for Corporate Social Responsibility projects run in the local community A prize in the ldquoBusiness and Educationrdquo category was assigned to the Master project which aims to give young people the skills required for sustainable development
Master in Florim
2016 Sustainability Report
Watch the videoof the 4th edition
2016 Sustainability Report30
Local Community amp Culture
This chapter describes a number of programs Florim runs for the local community in the area where it originated and where it has been working for more than 50 years
Politecnico di Milano
Since the 20052006 academic year Florim has been a partner sponsor of a large number of Postgraduate Courses run by POLIDesign the Politecnico di Milano consortium which organizes its Master Degree coursesAlso in association with POLIDesign since 2012 Florims Milan showroom has hosted several design events for architects and designers of every nationality
Aziende modenesi per la RSI
ldquoAziende Modenesi per la RSIrdquo an independent open inclusive association of companies in the Modena area which believe in the principles and values of Corporate Social Responsibility was established by public deed on 30 September 2014 with Florim as a founding member Florim hosts the associations member companies every year to discuss the various topics proposed
Premio Lucchese
The Premio Lucchese presented for the twenty-ninth time in 2016 was established in memory of Giovanni Lucchese and consists of scholarships awarded to students at the ldquoAlessandro Voltardquo Technical High School in Sassuolo who graduate with full marks The award ceremony held every year at the Florim Gallery in association with Societagrave Ceramica Italiana of Bologna includes a talk given by a leading personality on a topic of current interest to an audience of eager young listeners
Intrapresaelig Collezione Guggenheim
As befits a company that combines the values of its local community and historic and artistic heritage with a flair for research and innovation Florim recently launched a partnership with the Peggy Guggenheim Collection Since its foundation Florim has always had a unique ability to incorporate the true cultural significance of its industry in its business model and by this project once again confirms its commitment to promoting art by supporting a collection of extraordinary beauty
Fondazione Ing Giovanni Lucchese
More than thirty years after the untimely death of Giovanni Lucchese ndash founder of what was then Floor Gres currently Florim ndash in 2013 his family established a Foundation in his name which since then has funded organizations and associations that support families in need in the ceramics district The Foundation also supports a variety of projects such as the summer play scheme for employees children the Premio Lucchese and the Florim HealthampTraining Center described in more detail below
The main projects undertaken in 2016 include the funding of the purchase of 10 defibrillators for the Municipality of Fiorano and the contributions made to the purchase of paediatric ambulances for the local area and to support the Parish charitable organizations and social services in the district
Watch the Premio Lucchese video
The project run jointly by Florim and Sassuolo Hospital adopts a completely new model combining industrial culture and healthcare in an original way to benefit the local people and community thanks to the coming-together of a ceramic coverings manufacturer and the public-private joint venture Ospedale di Sassuolo Spa Florim HealthampTraining is the synthesis of this idea an experimental center which promotes local training for healthcare and other staff health education and information advanced medical simulation and research
The Center
On the main Florim site and opened on 16 April 2014 the Center is 550 square meters in area and contains a modular lecture theatre able to seat over 100 people and a number of classrooms for seminars and lessons At its heart is a state-of-the-art control room crammed with technology that operates dummies capable of reproducing human functions of all kinds Advanced simulation is a major aid to maintaining the skills of emergency healthcare workers with a particular focus on pediatric and neonatal resuscitation
Health meetings
Designed as a space for community use the Center also aims to become a place where all sections of the population - workers schoolchildren parents teachers volunteers and even just members of the public - can learn about preventive health care and acquire first aid skills After the distribution to Florim employees of a questionnaire surveying their training needs and preferences a Center Scientific Committee of Sassuolo Hospital medical personnel was appointed and drew up a plan of bi-monthly ldquoHealth meetingsrdquo All meetings are led by doctors with expertise in the various topics who answer the many questions from the audience at the end of their talks Between its opening and the end of December 2016 the Center hosted 13 meetings on a variety of topics attended by about 1000 people including employees their family members and the community at large
Healthcare discounts for Florim employees
The project also includes a major welfare program for all Florim employees and their family members entitling them to discounts and shorter waiting times for specialist examinations and outpatient diagnostic tests performed on a private basis
American Heart Association
The world-famous American Heart Association (AHA) is the oldest and most respected American voluntary organization dedicated to the fight against cardiovascular diseases and strokes In 2015 the AHA via the Simaid International Training Center named the Florim HealthampTraining Center as an Authorized Training Site for basic and advanced cardiopulmonary resuscitation
Florim HealthampTraining Center
2016 Sustainability Report
Watch the Health amp Training Center video
2016 Sustainability Report32
Product Responsibility
Here we summarize the concept of Made in Florim denoting a product that encapsulates the companys core values passion innovation a constant commitment to improvement and corporate social responsibility
Florim product certifications
CE Marking guarantees the user that the materials purchased meet the requirements of the relevant regulations and that the characteristics concerned are virtually unchanged for all production lots It is a declaration of conformity which protects the consumerrsquos safety The presence of the CE Marking on packaging guarantees that Florim products comply with the relevant regulatory requirements
Ecolabel (EC Regulation 662010) is a certification granted to products which comply with ecological and performance criteria set at a European level concerning raw material extraction supplier selection manufacturing processes packaging distribution use and disposal The certified Florim collections are Architech Ecotech Reverse Walks 10 by Floor Gres and Pietra del Nord under the Rex brand
Several ceramic tile collections bearing the Florim brands have earned certification from Bureau Veritas for their pre-consumer recycled material content These articles are therefore fully eco-compatible and can meet the environmental sustainability requirements imposed by many international certifications
Florim is a member of the US Green Building Council (USGBC) the most important association which promotes the reduction of buildings negative impact on the environment To allow the effective monitoring a projects level of sustainability the USGBC has developed a certification procedure for the development of sustainable buildings which assess and certifies the sustainability of a building in its entirety Florim materials are able to help to gain LEED points in a number of areas (data available on the Florim brand websites)
Florim has achieved the prestigious Greenguard certification for all its products Issued by the American body UL Environment this certification aims to reduce indoor pollution caused by interior design systems and materials UL Environment thus aims to protect health by improving air quality and reducing peoples exposure to chemicals and other pollutants Florim has also achieved Greenguard Gold Certification which imposes even stricter limits to confirm that a given product is suitable for use even in locations such as schools and health care facilities
The EPD or Environmental Product Declaration is a document which defines the environmental impacts arising from production In 2016 Florim participated in the study - certified by the German organization IBU - performed on the ceramics industry average data which aims to raise international awareness of the excellence of the environmental standards achieved
Beyond the standardsMade in Florim products are a guarantee of safety highly innovative content and eco-friendliness The people who produce them work in a safe place and in ethically sustainable conditions Due to their nature all Florim products are guaranteed free from pollutant emissions do not accumulate electrostatic charges are frostproof and completely inert and are undamaged by contact with flames The Groups Internet sites and collection catalogues contain the technical data sheets which detail the product information (slip-resistance breaking strain abrasion resistance etc) for every collection as well as its recycled material content with the relative certificates
During the period under consideration no banned products were placed on the market and the company was not found guilty of any breaches of the law with regard to data protection or its marketing and communication activities
EU Ecolabel nr IT2104
2016 Sustainability Report 33
Quality SystemThe current ISO 9001 standards define quality as the ability to satisfy explicit or implicit needs via a product or a service A Quality System implies constant improvement of company processes in order to realise products that always satisfy the customerrsquos needs Further to the 2016 audit Florim obtained the renewal of its UNI EN ISO 90012015 certification for the design manufacture and sale of all categories of ceramic tile
Objective Indicator 2012 2013 2014 2015 2016
Continual improvement of control of the production process
Percentage of First Grade Product ()
924 943 942 952 956
Quality rate () 883 905 903 905 909
Scrap rate () 44 41 42 42 49
Productivity (sq mhour) 186 188 186 190 200
Improvements in sales performance and customer satisfaction
Innovation rate () 330 296 367 455 364
Coverage () 795 714 814 813 816
Total portfolio shippable within one month ()
911 837 888 893 897
Optimization of range and stocks
Obsolete stock () 172 126 165 120 69
Stock turnover rate () 13 15 16 15 16
Gradual elimination of disputes complaints and claims concerning service
Square meters affected by complaints ()
17 12 08 12 09
Complaints by number of order items ()
10 11 11 10 10
Gradual improvement in staff skill levels
Employee turnover () 15 23 04 04 12
KeyPercentage of first grade product percentage ratio between the square meters of first grade products and the total square meters transferred to stockQuality rate percentage ratio between the square meters of first grade product transferred to stock and the square meters leaving the pressesScrap rate percentage difference between square meters of material leaving the presses and square meters of product actually transferred to stockProductivity ratio between the square meters transferred to stock and the total hours worked in the plantInnovation rate ratio between square meters sold belonging to series designed in the last three years and total square meters sold Florim uses this indicator to assess the effectiveness of its design process in terms of salesCoverage percentage ratio between square meters available for immediate shipment and the square meters on orderTotal portfolio of orders shippable within one month percentage ratio between the square meters which can be shipped in 30 days and the square meters on orderObsolete stock percentage ratio between the square meters of substandard discontinued produce and the total square meters in stock Stock turnover rate ratio between the square meters sold and the square meters in stockSquare meters affected by complaints percentage ratio between the square meters affected by complaints and the square meters soldComplaints by number of order items percentage ratio between the number of complaints and the number of items orderedEmployee turnover percentage ratio between the number of employees leaving the company and being replaced and the workforce at the start of the year
2016 Sustainability Report34
Casamood - Neutra 60 Collection
2016 Sustainability Report 35
OUR COMMITMENTS
The promises we keptIn our last Sustainability Report we committed to achieving a large number of objectives the following are the outcomes we attained
Relaunch of the ldquoCEDIT ndash Ceramiche drsquoItaliardquo brand OBJECTIVE ACHIEVED
Launch of the FLORIM stone brand OBJECTIVE ACHIEVED
Installation of a new latest-generation kiln at the Mordano plant OBJECTIVE ACHIEVED
Transfer of the Moscow showroom to new premises SCHEDULED FOR 2017
Creation of a new gatehouse at the Mordano plantOBJECTIVE POSTPONED TO GIVE PRIORITY TO THE CONSTRUCTION OF THE NEW FACTORY
Introduction of ERP system at Florim USA OBJECTIVE ACHIEVED
Installation of a new spray dryer and raw material handling system at Florim USA
OBJECTIVE ACHIEVED
Economic Responsibility
Renewal of certification of the Florim environmental and energy management system
OBJECTIVE ACHIEVED
Award of new certifications for collections manufactured with a high recycled material content
OBJECTIVE ACHIEVED
Continuation of work to reduce environmental impacts at Mordano especially with the reduction of energy costs
OBJECTIVE ACHIEVED
Continuation of the work to remove asbestos cement roofing materials at the Mordano plant
OBJECTIVE ACHIEVED
Expansion of the system which conveys rainwater to the treatment plant OBJECTIVE ACHIEVED
Reduction of the noise emissions of the air filtering systems OBJECTIVE ACHIEVED
Increase of recycling targets through constant awareness-raising amongst all staff and optimisation of recycling facilities
OBJECTIVE ACHIEVED
Continuation of replacement of the diesel forklift trucks for use on outdoor yards with electric vehicles
OBJECTIVE ACHIEVED
Environmental Responsibility
Running of fourth edition of Master Florim course with new procedures OBJECTIVE ACHIEVED
Creation of an internal refreshment area for the Fiorano office staff OBJECTIVE ACHIEVED
Improvement of corporate welfare through the activation of new free services and discounts tailored to employees needs
OBJECTIVE ACHIEVED
Continuation of the health meetings for the local community in association with Ospedale di Sassuolo Spa
OBJECTIVE ACHIEVED
Organization of new community events at Florim Gallery OBJECTIVE ACHIEVED
Organization of Florim Family Day 2016 A PARTY WAS ORGANISED FOR EMPLOYEES
Social Responsibility
2016 Sustainability Report36
The targets we set for ourselvesWe aim to achieve the following objectives in 2017
Economic Responsibility
Construction of a new factory at Mordano to produce large slabs
Launch of the project to unite the Florim spa sales organizations
Total restyling of the corporate and brand Internet sites
Launch of the HUB project - Intranet CRM Marketing Automation
New plants at Florim USA a press two sorting lines a polishing and rectifying line
New working spaces and cloakrooms for technical staff at the American plant
Environmental Responsibility
Purchase of a new cogenerator for the Mordano plant
Introduction of a new rainwater collection system at Fiorano
Land reclamation project involving covering of the Rio Spezzano stream at Fiorano
Implementation of new software for continual monitoring of energy impacts at Fiorano
Modernisation of the compressor room to improve energy impacts at Mordano
Increase of recycling targets through constant awareness-raising amongst all staff and optimisation of recycling facilities
Continuation of replacement of the diesel forklift trucks for use on outdoor yards with electric vehicles
Social Responsibility
Improvement of corporate welfare through the activation of new free services and discounts tailored to employees needs
Continuation of the health meetings for the local community in association with Ospedale di Sassuolo Spa
Organization of new community events at Florim Gallery
Organization of a new event for Florim spa employees
New offices for hospitality and events staff at Fiorano
2016 Sustainability Report 37
FLORIM USA
Profile and Economic ResponsibilityFlorim USA with registered office at Clarksville - Tennessee - and its subsidiary Florim Solution Inc have been part of the Florim Group since 2000 The Florim USA manufacturing plant one of the largest most technologically advanced in the United States produces porcelain stoneware tiles for the residential market and undertakes commercial projects in North America During the last few years Florim USA has implemented a growth and process optimization strategy which has generated significant technological progress with more innovations planned for the future The strategy adopted will put Florim USA at the worldwide state of the art in porcelain stoneware tile manufacture
In 2016 of the 18 million USD invested 147 was allocated for installation of a latest-generation raw material handling system and a large spray-dryer with an innovative sorting system Improvements were made to other parts of the process to increase their efficiency leading to a further reduction in emissions and scrap rates Additional investments are planned during 2017 to continue this dual trend of rising production with mitigation of environmental impact
The new Florim Flagship Store in New York (152 Madison Avenue 32nd Street)
2016 Sustainability Report38
Environmental ResponsibilityFlorim USA implements the same environmental policy as Florim and is committed to achieving the following objectives
bull reduction of the energy used in the production processbull improvement of the waste management process with a focus on recovery and reusebull introduction of new more eco-efficient technologiesbull adoption of integrated management systems
Florim USA has been pursuing a strategy of careful management of its operations and environmental impact for a number of years Here we summarise the main actions taken and the results achieved in 2016
bull installation of a latest-generation spray-dryer in 2016bull installation of an innovative raw material handling system in 2016bull 100 recycling of wastewater within the processbull optimisation of the management of water bottles with elimination of about 34200 of them per annumbull reuse of almost all production scrap (+99)bull 157000 kg of cardboard recycled in 2016bull award of two different types of product certificationbull 9300 kg of plastic recycledbull recycling of 17 complete trucks of pallets
Environmental Projects and Awards
Florim USA has received Clarksville Montgomery County Green Certification (CMCGC) CMCGC is a program designed to help companies learn and implement best practices in the area of environmental stewardship to sustain the local communityrsquos resources through a series of free workshops taught by local environmental specialists Since 2014 Florim has allocated some of its Environment Managers time for the running of these workshopsFlorim USA earned this green company certification thanks to a large number of projects first and foremost the one which eliminated the use of disposable water bottles replaced with individual reusable bottles provided by the company and a series of fill-up stations About 34200 bottles are removed from the waste cycle every year
During the latest phase of its plant optimization Florim USA has implemented a thorough construction material reuse policy In the various stages of demolition of the old plants including the old storage silos the concrete debris was recovered and reused in other construction worksThis project alone generated 11500 tons of recycled aggregate as well as several hundred tonnes of metal sold to a recycling firm
Environmental management system and eco-compatible products
Florim USArsquos products help builders and designers to meet the requirements for sustainable buildings as defined by the United States Green Building Council (USGBC) through the LEED Green Building Rating System This protocol evaluates and certifies the environmental sustainability of a building as a unit from its design to its day to day management To gain LEED credits many of the Florim USA product lines contain a significant percentage of recycled material (40 or more)This feature contributes to an increase in the LEED score in the projects where these products are installed In 2014 Florim USA together with a large number of other US tile manufacturers and the Tile Council of North America drew up a type III environmental product declaration (EPD) certified under the ISO 14025 standard This ceramic tile life-cycle analysis enables Florim USA products to gain LEED points under the new LEED v4 protocol
2016 Sustainability Report 39
Water use (gallonsper million square feetof finished tiles)
208137 216246 204962 195280 194268
Energy use
2012 2013 2014 2015 2016
Cubic feet of natural gas per million square feet of finished tiles 9343383 9149721 8331170 8390503 8380000
kWh per million square feet of finished tiles 510972 491171 450594 465976 490300
Emissions
Particulate material lt 21024 tonnes per annum
SO2 (sulphur dioxide) lt 1674 tonnes per annum
VOC (volatile organic compounds) lt 1245 tonnes per annum
NOx (oxides of nitrogen) lt 1501 tonnes per annum
Environmental performance indicators ndash summary
The following are the main environmental indicators related to the impact and performance of Florim USA during 2016
Pre-consumer recycled material
Its internal material recycling processes enable the company to minimise its environmental impact since most of the material which would otherwise be sent to landfills or other waste treatment centers is reusedbull Wastewater is entirely recycled within the production process without any discharge into the municipal drainsbull The material in the collection bags from the tile body and glaze preparation areas the press and glaze application is entirely recycled within the processbull All scrap fired tiles are entirely recycled within the processbull 157000 kg of cardboard was sold to an external recycled material dealerbull 17 trucks of unusable wooden pallets were sold to a pallet regeneration companybull About 9300 kg of waste shrink-wrap plastic film was recovered and recycled
Post-consumer recycled material
About 82000 kg of glass was removed from the flow of waste destined for the local landfill and recycled within the process Florim USA has signed an agreement with the local landfill for consignment of all the glass it handles which is collected and set aside for recycling
Water use disposal and reuse
The water used during the production process is recycled continually therefore no water is discharged into the municipal drains
The 2016 emissions figures are in line with those for previous years well below the standards laid down
Water use 2012 2013 2014 2015 2016
Water use (gallons per million square feet of finished tiles) 216246 204962 195280 194268 203928
2016 Sustainability Report40
Social Responsibility
Employees
The Florim USA workforce comprises 348 staff employed at the production site the Clarksville and Nashville outlet stores and the Florim Solution offices Of the 348 employees 273 are blue-collar workers and 75 office staff 5 employees are Italians on secondment to the United States Florim USA offers a number of benefits to full time employeesbull health and dental care insurancebull Vision insurancebull life insurance for employees and optionally for family membersbull temporary and permanent disability supportbull employee pension plan
2012 2013 2014 2015 2016
Workplace injuries 50 41 22 29 27
The Employee Assistance Program (EAP) also offers support to employees and their families in the event of psychological difficulty or other problems that can have a negative impact on their quality of life Florim USA supports all the costs of the program
Equal opportunities
Florim USA provides equal opportunities in all employment practices to all qualified employees and applicants regardless of race colour religion gender national origin age disability or membership of the armed forces or any other category protected by federal state or local laws
Health and safety
FLORIM USA is committed to ensuring a safe healthy workplace for all employees It therefore replaces old and obsolete equipment with new technologically more modern machinery and updates safety plans as new information gradually becomes availableAs well as an internal supervisor Florim USA has also appointed a health and safety committee which constantly monitors the plans effectiveness and makes any changes requiredThere are currently 20 plant employees who hold CPRfirst aid qualifications They occupy a variety of positions and work different shifts within the plant and have volunteered to attend training courses sponsored by the company for the award of these qualifications
Training
In 2016 every Florim USA employee attended an average of about 25 hours of training The training provided covered the operating procedures for the new equipment the main safety plans and the procedures for use of existing equipment for new employeesAll new staff undergo specific training for their department focusing on the safety-related aspects of the department concerned as well as more generalized safety training
Some of these themes includebull safe correct use of forklift trucksbull training on work in confined spacesbull shutdownwarning procedures and safe electrical practicesbull safe lifting procedures
2016 Sustainability Report 41
Florim USA ndash (Clarksville Tennessee)
For employees wishing to continue their education Florim USA offers assistance through the Educational Assistance Program It provides aid with the cost of education and textbooks and is available for any employee wishing to study for a technical qualification a diploma or a degreeThe plant staff training and education plan also includes various training schemes at Florim Italy where employees are instructed in the use of new equipment before it is installed at the American plantThroughout 2016 Florim USA will continue to provide a free e-learning course on its website for architects engineers and contractors (AEC) to improve their knowledge of sustainable porcelain stoneware tiles
Employee welfare activities
Florim USA employee picnic - In 2016 the company once again held its annual picnic for employees offering them a wide variety of foods games activities and live shows in an event which provided an unforgettable days enjoyment Within the event participants received prizes in the form of vouchers and gifts
Employee anniversary dinner - 2016 again saw the usual dinner to honour Florim USA employees with 5 10 15 20 or more years of service A special evening event was held in the presence of the Chairman and the other managers to celebrate the loyalty and hard work these employees have contributed during their careers with the firm
2016 Sustainability Report42
Local Community
During 2016 Florim USA continued to provide its support to a number of projects in its local areaSome of the main projects include
Scholarships - As part of its work to support the local community Florim has an established scheme which awards scholarships to deserving students at the Austin Peay State University in memory of Florim Group founder Giovanni Lucchese In December 2016 a delegation of Florim representatives attended a scholarship presentation lunch at the Austin Peay State University hosted by the President of the University
Montgomery County Green Certification Program - Florim USA staff actively participate in the Montgomery County Green Certification Program which aims to help companies learn and implement best practices with regard to safeguarding the environment and environmental resources
Donations - In 2016 the company again made a large number of donationsbull book collection for the Austin Peay State University Employees made a generous donation of used books in good condition for children and young people of the APSU in the hope of further promoting the education of future generationsbull to Community Cares the national organization that promotes the acceptance and social inclusion of individuals with Downs Syndromebull to the Aspire Clarksville Foundation a 501(c)(3) charitable foundation whose mission is to continuously improve the economy and the livability (quality of life) of the community by attracting significant capital investment and expansion by businesses and corporations thereby creating better opportunities and higher paying jobs for residentsbull to the Alzheimerrsquos Association a non-profit voluntary organization dedicated to the care and support of Alzheimers Disease sufferers and research into the condition Its aim is to eliminate the disease through the advancement of research to provide and enhance care and support for all affected and to reduce the risk of dementia through the promotion of brain health
Other activities - Every year Florim USA participates in the United Way Drive initiative to support local non-profit organizations which provide economic assistance and psychological support to persons in difficulty
Florim USA provides regular support to the Salvation Army by collecting canned foods for persons in needIn 2016 the company again organised a canned food collection for Manna Cafeacute in Clarksville TN Manna Cafeacute is a local non-profit organization based in Middle Tennessee with the primary mission of meeting peoples fundamental need for food before encouraging them to permanently change their lives for the better More than 15 of the population in Montgomery County are affected by food insecurity (about 28000 people) The percentage of children affected is about 215 a third of whom are excluded by income from federal programs such as free school mealsFinally donations were made tobull American Lung Association the leading organization working to save lives by improving lung health and preventing lung disease through research and educationbull Cheer for a Cure an organization that gives money directly to afflicting families who have a loved one suffering from cancer and need assistance to alleviate the added financial stressbull Habitat for Humanity Since 1992 Habitat for Humanity in Montgomery County Tennessee has worked with 93 low-income families with more than 210 children to revitalise various parts of Clarksville-Montgomery County by building new homes
2016 Sustainability Report 43
Quality SystemFlorim USA works under a Quality System certified to UNI EN ISO 9001 standards The following are some of the figures in brief
Objective Indicator 2012 2013 2014 2015 2016
Optimisation of control of the production process
Percentage of First Grade Product ()
932 917 940 949 9510
Quality rate () 883 857 893 906 909
Scrap rate () 56 65 48 45 45
KeyPercentage of first grade product ratio between square feet of first grade material and total square feet transferred to stockQuality rate ratio between square feet of first grade material transferred to stock and square feet pressedScrap rate ratio between square feet pressed and square feet of product actually transferred to stock
Other ActivitiesFlorim USA and trade shows
In 2016 Florim USA participated at a number of shows and events including Coverings the AIA Tennessee Convention Hardscape North America Total Solutions Plus Neocon International Pool - Spa and Patio Expo These events targeted at the various categories of industry professionals such as dealers and designers gave Florim USA the opportunity to present its new range of indoor and outdoor products
Design Center
In December 2015 Florim USA opened a design center showroom in Nashville (TN) in a strategic location close to the airport and the city center With a spacious area to host individual CEU presentations and workshops this design center has the potential to be a major resource for local architects In 2016 it was also awarded the ldquoOutstanding Boothrdquo booth prize at the 33rd edition of the Annual Home Decorating and Remodeling Show The location is the ideal place for sharing ideas finding inspiration and putting professionals and architects in touch with each other
Florim Nashville Design Center
2016 Sustainability Report44
GRI International Sustainability Indicators SDGsThe information below illustrates the correspondence between the Florim (Italian companies) 2016 Sustainability Report the GRI-G4 guidelines and the icons of the Sustainable Development Goals (SDGs) definitively adopted by the United NationsA description of the SDGs is available at wwwglobalcompactnetworkorg
GRI indicators
Description Page Reference to SDGs
1 Strategy and Analysis
G4-1 Statement from the most senior decision-maker of the organization 5
2 Organization profile
G4-3 Name of the organization 2
G4-4 Primary brands products andor services 9
G4-5 Location of the organizations headquarters 9
G4-6 Number and names of the countries where the organization operates 9
G4-7 Nature of ownership and legal form 14
G4-8 Markets served 9
G4-9 Scale of the organization 8 8
G4-10 Significant changes regarding size structure or ownership 8
G4-11 Employees covered by National Collective Bargaining Agreement 27
G4-12 Describe the supply chain 16
G4-13Significant changes regarding the organizationrsquos size structure ownership or its supply chain
Reporting process
launched
G4-14 Precautionary principle 22
G4-15 List of external commitments in which the company is involved 22 32 33
G4-16 Associations or interest groups in which the company is involvedwwwflorimit gt
about us gt partnerships
3 Identified material aspects and boundaries
G4-18 Process used to define the report content 6
G4-19 Material aspects 16
G4-20 Boundaries of each material aspect 6
G4-21 Boundaries of each material aspect outside the organizationPartial reporting
(pages 6 16)
G4-22 Explanation of the effect of any restatements of information provided in previous reports 6
G4-23Significant changes from previous reporting periods in the scope boundaries or measurement methods
6
3 Stakeholder engagement
G4-24 List of stakeholders 15
G4-25 Identification of stakeholders 15
G4-26 Stakeholder engagement 6 16
G4-27 Key topics and concerns that have been raised through stakeholder engagement 16
4 Boundary of the Report
G4-28 Reporting period 6
G4-29 Date of publication 2
G4-30 Reporting cycle 6
G4-31 Contacts and addresses for additional information 46
5 GRI Content Index
G4-32 Reporting option chosen 6 7
G4-33 External assurance of ReportThe Report is not
externally assured
2016 Sustainability Report 45
GRI indicators
Description Page Reference to SDGs
6 Governance
G4-34 Governance structure 14
7 Ethics and integrity
G4-56 Values principles standards and norms of behavior 13 16
Economic performance indicators
EC1 Direct economic value generated and distributed 19 25789
EC5 Wages 27 158
EC7 Development and impact of infrastructure investments and services supported 23 24 31 257911
Environmental performance indicators
G4-EN2 Percentage of materials used that are recycled input materials 17 22 23 812
G4-EN3 Energy consumption within the organization 24 781213
G4-EN6 Reduction of energy consumption 17 24 71213
G4-EN7 Reductions in energy requirements of products and servicesPartial reporting
(page 22)71213
G4-EN8 Total water withdrawal by source 17 23 6
G4-EN10 Percentage and total volume of water recycled and reused 17 21 23 612
G4-EN11 Biodiversity 23 615
G4-EN15 Total indirect greenhouse gas emissions by weight 25 3121315
G4-EN16 Total indirect greenhouse gas emissions by weight 25 3121315
G4-EN19 Reduction of greenhouse gas emissions 8 24 1315
G4-EN21 NOx SOx and other significant air emissions 25 31215
G4-EN22 Total water discharge by quality and destination 23 6
G4-EN23 Total weight of waste by type 17 22 3612
G4-EN27 Impact mitigation of environmental impacts of products and services 23 68121315
G4-EN29 Monetary value of significant fines 22 16
G4-EN30 Significant environmental impacts of transporting products and goodsmaterialsPartial reporting
(page 25)111213
Social performance indicators
G4-LA1 Total number and rates of new employee hires and employee turnoverPartial reporting
(pages 17 27)8
G4-LA6 Workplace injury ratesPartial reporting
(page 17)38
G4-LA9 Average hours of training per year per employee 28 48
G4-LA12Composition of governance bodies and breakdown of employees according to gender age group etc
27 58
G4-LA13 Ratio of basic salary and total remuneration of women to men 27 5810
Society
G4-SO1 Operations with local community engagement 12 31 16
G4-SO3 Operations assessed for risks related to corruptionPartial reporting
(page 13)
Product responsibility
G4-PR1 Assessment of health and safety impacts for improvement 23 32
G4-PR3 Type of information about products and services required by the procedures 32 12
G4-PR5 Proceedings relating to customer satisfaction including surveys conducted to measure it 33
G4-PR6 Sale of banned or disputed products 32
G4-PR8 Number of substantiated complaints regarding breaches of privacy 32 16
2016 Sustainability Report46
Your Assessment
You are kindly requested to take a few minutes of your time to give us your assessment and any suggestions to enable us to improve future editions of our Sustainability Report
Click here to send us your feedback
To keep up to date with our business
Spazio CEDIT - interior (Milan)
wwwflorimiten
Florim Ceramiche
Florim4Architects
Florim_ceramiche
Florim Ceramiche spa
Florim Ceramiche
Florim Ceramiche
For any further information please feel free to contact our communications department comunicazioneflorimit
2016 Sustainability Report 47
Premio Lucchese - Florim Gallery (Fiorano Modenese - Modena Italy)
Intrapresaelig Guggenheim Collection - Massimo Bottura in Florim Gallery (Fiorano Modenese - Modena Italy)
Panathlon Christmas Gala - Florim Gallery (Fiorano Modenese - Modena Italy)
2016 Sustainability Report48
White Christmas Party - Florim Gallery (Fiorano Modenese - Modena Italy)
Cersaie - Mario Biondi in Florim Gallery (Fiorano Modenese - Modena Italy)
Dal buio alla luce - Social event at Florim Gallery (Fiorano Modenese - Modena Italy)
2016 Sustainability Report 49
Florim Gallery entrance (Fiorano Modenese - MO)
2016 Sustainability Report52
Florim Ceramiche spaVia Canaletto 24 - 41042 Fiorano Modenese (Modena Italy) - Tel +39 0536 840111 - wwwflorimit
2016 Sustainability Report16
Materiality ApproachIn 2015 the company began an internal analysis process based on the materiality principle in order to identify the sustainability issues of relevance both for the Group (including Florim USA) and for all stakeholders Materiality is the threshold above which a topic becomes sufficiently important to be included in the report In fact organizations are faced with a large number of topics on which they could report Relevant topics and indicators are those considered important for reflecting the organizations economic environmental and social impacts or which influence the decisions of its stakeholder and which therefore potentially merit inclusion in the report In accordance with the GRI ndash G4 Guidelines Florim has analyzed and identified relevant topics which were assessed by the working team which drafted the Sustainability Report on the basis of discussion with the main stakeholders The findings which emerged were supported by a qualitative survey external to the companys context examining an analysis of the press gallery (more than 650 articles) competitors Sustainability Reports the Emas Study of the Fiorano and Sassuolo Ceramics District and the GRI document ndash ldquoSustainability Topics for Sector What do Stakeholders want to knowrdquo
In the chart below the aspects found to be most important appear in the top right-hand corner and constitute a strategic priority for the Group The topics in the bottom left-hand corner such as biodiversity prevention of corruption and absence of discrimination are less relevant because they are easy for both the organization and stakeholders to manage and no problems have ever been reported over the years Similarly the protection of human rights is now taken for granted since Florim complies strictly with all the provisions of the National Employment Contract
Importance for stakeholders
Importance for Florim spa
low
m
ediu
m
high
low medium high
Biodiversity
Indirect economic impacts
Prevention of corruption
Market share
Absence of discrimination
Sustainable transport
management
Protection of Human Rights
Environment and safety
Water saving
Energy efficiencyRaw materials
Diversity and equal opportunities
Transparency of financial and other
information
Ethical supplier
management
Investments in the local community and social welfare
Direct and indirect environmental
impacts
Green products and
services
Economic performance
Quality of products offered to customers
Regulatory compliance
Development of human resources
and training
ENVIRONMENT
COMMUNITY
EMPLOYEESASSOCIATES
ECONOMIC PERFORMANCE
PRODUCT RESPONSIBILITY
HUMAN RIGHTS
2016 Sustainability Report 17
FinFloor consolidated (in thousands of Euro) 2012 2013 2014 2015 2016
Net earnings 315344 325853 329533 374094 406759
EBIDTA 59608 72986 84395 98115 107186
Operating result 35717 50996 58508 66255 71028
Gross cash flow 52710 68312 83274 97268 109148
Net profit 26103 35732 36433 43324 49347
Net financial indebtedness (127730) (96500) (54524) (27326) (12508)
Final inventory 95514 84432 90283 92795 96721
Net shareholders equity 186905 218847 276916 332721 369937
Total investments 32572 48780 41584 34215 53531
2012 2013 2014 2015 2016
Waste produced (t) 30228 21170 22300 30862 34423
Recycled third-party waste (t) 4028 4190 1721 2570 5627
Total water consumption (msup3) finished product (t) 075 075 078 069 071
Recycled water percentage 100 100 100 100 100
Self-generated energy in relation to consumption 67 68 62 65 75
Investments in environmental management (euro000) 13617 2493 1995 465 6400
2012 2013 2014 2015 2016
Number of employees at 3112 1037 992 984 982 987
Total number of training hours 14690 9124 9056 7176 10606
Number of training hours on environment and safety 7572 4514 4200 3008 2489
Number of workplace injuries 63 62 74 56 43
Environmental and social profile figures refer to Florim Italy for Florim USA please see the relevant section (from page 37)
REPORTING
In brief
Economic Profile
Environmental Profile
Social Profile
2016 Sustainability Report18
Economic Responsibility
Comments on 2016 Economic Data
The Groups 2016 results were again good from every point of view
Compared to the previous year turnover increased by 87 leading thanks to careful management of production costs to an EBITDA of Euro 1071 million equivalent to 263 of turnover and a profit after tax of Euro 493 million
The companys financial data also significantly improved with a net financial position of Euro 125 million compared to Euro 273 million at the end of 2015 in spite of record technical investments of Euro 535 million and financial investments of Euro 11 million
Once again underlying the results achieved were large investments in latest-generation machinery and technologies painstaking research to develop materials with exceptionally high technical and design content human resources and projects for the increasingly direct promotion of Florims image and quality standard
Investments
The technical investments made in 2016 amount to Euro 535 million while Euro 11 million was spent on reacquiring 100 ownership of Maker srl followed by its amalgamation with Florim spa on 31 December The most important industrial projects included the continuation of the work on the Mordano plant which involved investments of Euro 26 million for the restructuring of the raw material preparation area and the doubling of production capacity for traditional porcelain stonewareThe investments of US$ 18 million at Florim USA were utilised to complete the renewal of the raw material preparation area and construct a new building for the technical organizationFinally about 9 million Euro was invested at Fiorano on various production line modernization projects
A creative hub for design style and new trends Milan once again confirms that it is the ideal setting for Florims investments and the opening of the all-new ldquoSpazio CEDITrdquo confirms the companys determination to strengthen its bonds with design professionals working in high-end interior design The culture of beauty art architecture and design are all integral to the genetic make-up of CEDIT ndash the historic Italian brand relaunched by Florim in 2016 ndash and dominate the display areas and the first six ceramic covering collections styled by famous names on the contemporary creative sceneOn two levels with a total floor area of more than 200 msup2 the space maintains the same stylistic identity as the one at Fiorano Modenese since they are both constructed to an architectural design intended to be replicated in CEDIT customers showrooms worldwide
Spazio CEDIT Watch theinauguration video
2016 Sustainability Report 19
Economic Value Generated and Distributed
The figures for the economic value generated and distributed provide a simple clear explanation of how Florim has created wealth and redistributed it to its stakeholders The table below contains the data from Florims 2016 financial statements approved by the Board of Directors on 30 March and certified by external auditorsThe economic value directly generated is represented by the total earnings for 2016 while the economic value distributed includes the costs incurred for suppliers and employees payments to the state (taxes) and the donations which had positive repercussions for the community to which Florim spa belongs
Heading 2014 2015 2016
Revenues 253125 269855 302521
Direct economic value generated 253125 269855 302521
Operating costs 135735 150951 168809
Employee wages and benefits 56985 58149 62418
Payments to providers of capital 7413 6399 11903
Payments to government 15738 13162 15382
Community investments 221 212 240
Economic value distributed 216092 228873 258752
Economic value retained 37033 40982 43769
KeyRevenues net sales plus revenues from financial investments and sale of assetsOperating Costs payments to suppliers non-strategic investments royalties payment facilitationsEmployee wages and benefits employee wages and benefits per employees (current payments)Payments to providers of capital all payments to the organizations providers of capitalPayments to government gross taxes and dutiesCommunity investments voluntary donations and investments in the communityEconomic value retained calculated as economic value generated less economic value distributed
The data in the table are in thousands of Euro and refer to the consolidated financial statements of the Italian companies only
KBIS (USA) - detail of the stand created with ldquoI Classici di Rexrdquo
2016 Sustainability Report20
Casa dolce casa ndash Argille 20 Collection
2016 Sustainability Report 21
Environmental ResponsibilityEffective environmental policy management energy saving and emissions reduction are amongst Florims strategic sustainability objectives
Our green projects in figures
2 highly-regarded process certifications
ISO 14001 (ENVIRONMENT)and ISO 50001 (ENERGY)
849873 MWh is the amount of electricity the
company succeeded in producing in-house during 2016
2 departments (marketing and communications)
engaged on digitizing advertising tools
8462 tons of CO2 NOT emitted
CO2
100 is the percentage of wastewater recycled
16000 msup2of photovoltaic panels covering
an area of 30000 msup2
75 is the percentage of the electricity consumed which is
produced in-house
4 latest-generation industrial kilns installed in
the last 3 years
4 different types of environmental product
certification
2 cogeneration plants to increase energy saving
and efficiency
1 laboratory for the development of contemporary design projects with a specific focus on the materials green
content
100is the percentage recycling of
industrial greenware waste in the production process
2016 Sustainability Report22
Certifications
System and process certifications
UNI EN ISO 14001TUumlV has awarded Florim the highly-regarded UNI EN ISO 14001 voluntary certification which confirms its compliance with a series of internally certified procedures intended to improve the internal environmental management system The decision to seek this certification springs from the desire to reconcile quality with efficiency and productivity while protecting the environment and community in which the company operates
UNI EN ISO 50001Thanks to a careful energy management policy and aided by the latest investments in the production area also intended to improve energy efficiency Florim was the worlds first ceramics manufacturer to obtain ISO 50001 certification of its Energy Management System
In addition to its environmental certifications Florim has also been awarded prestigious AEO (Authorized Economic Operator) status
Further to a lengthy and demanding audit process by the Customs Authorities in 2016 Florim was awarded AEO certification the first company in the Province of Modena to receive this major form of approval Authorised Economic Operator status guarantees the companys absolute compliance with customs and security requirements in its foreign trade
Environmental Management
Waste 2012 2013 2014 2015 2016
Total waste produced (t) 30228 21170 22300 30862 34423
Non-dangerous recyclable waste (such as paper and cardboard fired scraps plastic glass and wood) ()
989 982 985 991 989
Non-dangerous disposed-of waste (such as the waste picked up by the motor sweepers) ()
02 04 02 02 02
Dangerous recyclable waste (such as spent oil batteries and monitors) ()
00 01 01 01 00
Dangerous disposed-of waste (such as spent lime) () 01 13 12 07 09
Third-party waste recycled within the production process (t) () 4028 4190 1721 2570 5627
Besides recycling greenware waste from its own production cycle (not included in the table because the amount cannot be calculated) Florim also recycles third party waste
Florims operations have always been oriented towards optimization of impact on the local community and environment Thanks to the work of its research laboratories the support of all staff and the recent investment plans tangible results have been achieved The data provided below reveal that in spite of an increase in production of 8 compared to the previous year consumption remains low The companys commitment to environmental protection is all-inclusive and also comprises a focus on the district within which it operates One example is the total removal of all asbestos cement from the Fiorano Modenese plant and the creation of the new recycling station opened in 2015 and donated to the Local Authority as a public serviceAs in previous years during 2016 Florim was not fined for any breaches of environmental regulations or laws
Florim recycles and optimises within the production process all greenware scraps dust residues from filters and sludge from the process and rectification wastewater treatment system The waste produced is detailed in the table the significant differences between years are due mainly to the major demolition and subsequent reconstruction works undertaken at the Italian plants
Waste Management
2016 Sustainability Report 23
Water Resources
No environmental impact of wastewater discharges is specified since all the water from the production cycle is completely reused (100) All other effluents comply with legal requirements
The figure states the total cubic meters of water used per ton of finished product The water used in the Fiorano production process is drawn from private company-owned wells with water from the public main only used for non-industrial purposes The Mordano plant is supplied by an industrial water main Water use is measured by means of meter readings Four highly innovative dry rectifying plants have gone into production at Mordano since 2015 enabling the company to eliminate the physicalchemical treatment of the water used in the rectification process
WATER USE
2012
08
2013
08
2014
08
2015
07Total water consumption (msup3) finished product (t)
07
2016
All packaging used for Florim materials is made from recycled paper and parts of the coverings used to protect pallets of finished products consist of recycled plastic Whats more all the packaging used (boxes cardboard shrink wraps pallets etc) can be completely recycled by the end user The latest investments made include new eco-friendly packaging machines increasing the number of these machines installed to 15 These plants completely eliminate waste due to leftover inventory saving significant amounts of cardboard
Packaging and Coverings
As the materiality assessment states Florim has no significant impacts on the biodiversity of its local area since the company is located inside the Fiorano Modenese ceramics manufacturing district at least 5 Km from the nearest nature reserve at Salse di Nirano Florim takes special care over the choice of the raw materials used for its tile body mixes of which it is required to provide documentation guaranteeing compliance with the European Directives protecting wild birds (EU Dir 79409EEC) and habitats (EU Dir 9243EEC) and the United Nations Convention on the protection of biodiversity It has also introduced a software program - used at the 3 production plants (Italy and the USA) - for the management of data on the origin of raw materials such as quarry location distance from the factory recycled content declaration technical safety and radioactive content data sheets and the expiry of the quarrying permit issued by the government
Raw Materials and Biodiversity
2016 Sustainability Report24
Energy Management
There is no disputing that large amounts of energy are required to power the production processes of ceramic tile plants with consequent direct and indirect impacts on the local area and the environmentThe main indicator used to measure plants energy performance is the mean specific total energy consumption (TEJ) measured in GJt of product transferred to stock As the table below shows this figure is obtained by adding together heat consumption (NGJ) and electricity used (EEJ)
Parameter ndash Definition Unit of measurement
2012 2013 2014 2015 2016
NGJ Mean specific natural gas consumption in relation to the unit of weight of finished product transferred to stock
GJt 557 571 576 578 598
EEJ Mean specific electricity consumption in relation to the unit of weight of product transferred to stock
GJt 111 108 111 108 107
TEJ Mean total specific energy consumption in relation to the unit of weight of product transferred to stock
GJt 668 679 686 685 705
Self-generated electricity as a proportion of consumption
67 68 62 65 75
With two cogeneration plants (for the combined in-house production of heat and electricity) and 16000 msup2 of photovoltaic panels the company certainly sets a new benchmark for the entire ceramic tile industry 2016 saw the replacement of the Fiorano turbine set (the main component of the cogeneration plant) while the one in Mordano was kept in operation 247 factors which led to a 10 increase in in-house electricity production in relation to consumption To provide a clearer idea of the scale of the achievement the amount of electricity the company generated in-house in 2016 (849873 MWh) would cover the average annual consumption of about 37000 households (With consumption per household of 229 MWh - data from the latest ISTAT survey in 2012ndash calculated on the Italian average)
Photovoltaic Plant
kWp kWh produced kg of CO2 not emitted
270021 15937250 8462680
Good Practice
The head office organizations are also optimizing paper and energy consumption In addition to issuing and distributing the energy saving handbook for its offices the company is also trying to maximize savings on the raw material used and specifically the use of paper Internally the company only purchases reams of paper which carry environmental certification and the paper used in offices is collected separately for proper disposal Externally the company distributes a system of merchandising products made mainly from recycled paper and encourages the gradual digitization of its marketing tools as well as publishing all its catalogues in digital format on its Internet sites Florim offers its distributor companies an innovative digital touch screen tool with the pdf versions of the catalogues and other tools for the final consumerIn 2016 Florim decided to adopt a new payslip distribution procedure introducing an online processing system As well as providing employees with new functions and greater operating flexibility thanks to this system the company no longer prints out the monthly payslips saving paper ink and energy The scheme initially involving all office workers has the ambitious target of also including the staff of the Fiorano and Mordano plants
The 16000 square meter photovoltaic plant received recognition from GSE (Energy Management Services) as one of the most innovative installations of its type and from its commissioning (October 2011) up to December 2016 it produced the following results
2016 Sustainability Report 25
Atmospheric Emissions
The industrial facility emits greenhouse gases basically CO2 from the following main sourcesbull combustion from the burning of fossil fuels (such as natural gas)bull processes from the minerals in the raw materials any organic matter in the clays used and any organic additives in tile body mixes
In order to comply with Directive 200387EC (ETS - Emission Trading Scheme) Florim has been reporting and certifying its CO2 emissions since 2013
CO2 emissions 2013 2014 2015 2016
CO2 emissions (t) 102728 103462 111862 132960
CO2 emissions (t) Finished product (t) 033 033 033 035
Emissions from the production cycle 2013 2014 2015 2016
Particulate material (gmsup2 finished product) 223 130 098 118
Lead (gmsup2 finished product) 000 000 000 000
Fluorine (gmsup2 finished product) 014 018 013 012
The increase in CO2 is due mainly to the large increase in the square meters produced (+ 8) and the 247 use of the cogeneration plant However it should be noted that the cogeneration plant provided a 10 increase in in-house electricity generation with lower CO2 emissions than electricity purchased from the grid produced mainly using fossil fuels (source ISPRA Fattori di emissione atmosferica di CO2 e sviluppo delle fonti rinnovabili nel settore elettrico Rapporti [Atmospheric CO2 Emission Factors and Development of Renewables in the Electricity Sector Reports] 2122015)The ratio between CO2 emissions and tons of finished product produced increased because in 2016 the sale of spray-dried material to other companies rose compared to the previous year (emissions from this phase are included in the emissions count but there is no corresponding output of finished product)
In a change from previous years the new GRI-G4 guidelines also require reporting of nitrogen oxide and sulphur oxide emissions Nitrogen oxide (NOx) emissions are within the limits permitted under the integrated environmental authorisation Sulphur oxide (SOx) emissions are not reported here since this figure is not required by the IEA
Transport
The materiality study reveals that transport is a significant factor for both stakeholders and Florim itself The company is not able to measure the impact of transportation of finished product on the local area since all shipments are ex-works However Florim which has been introducing electric vehicles to replace its oldest most obsolete unleaded petrol forklifts for years now has further optimized the handling of materials thanks to the new highly-automated logistics hub created at the via Canaletto location In 2016 about 53 of the vehicles used on the companys premises were electric with no direct greenhouse gas emissions
2016 Sustainability Report26
CEDIT ndash Creative Composition
2016 Sustainability Report 27
Workforce Composition
In 2016 the workforce included 27 people with disabilities 6 women and 21 menBearing in mind the job descriptions arising from the specific industrial sector the breakdown between men and women is in line with the industry average Male office workers and executives earn an average of 10 more than women for jobs of equal responsibility Among blue-collar workers the difference is 7 The company had a total of 29 foreign employees 24 at Fiorano and 5 at Mordano
Manager Executive Office worker
2013 2014 2015 2016 2013 2014 2015 2016 2013 2014 2015 2016
Women 2 3 3 3 3 1 1 1 137 142 133 149
Men 18 21 20 18 21 24 25 28 127 132 128 132
Total 20 24 23 21 24 25 26 29 264 274 261 281
Office ancillary Blue-collar worker Total
2013 2014 2015 2016 2013 2014 2015 2016 2013 2014 2015 2016
Women 18 16 25 19 226 219 212 196 385 381 375 368
Men 64 68 79 64 376 358 356 377 607 603 607 619
Total 82 84 104 83 602 577 568 573 992 984 982 987
Social Responsibility
Employees amp Corporate welfare
Its employees are the heart and soul of Florim they provide its character and its DNA Since 2009 when the current major economic crisis began Florim has undertaken a number of income support programs for its workforce Below we summarise some of the ongoing programmes and others run in 2016bull Ending of the Income Support Program for the Mordano plantbull Agreement with Sassuolo Hospital under which Florim employees and their family members enjoy discounts and shorter waiting times for specialist examinations and outpatient diagnostic tests performed on a private basisbull Special agreements with local health facilitiesbull Tax advice at special rates bull Special terms for banking services with financial consultants on-sitebull Discounts on the purchase of Florim products for employees homesbull Free entry to the Peggy Guggenheim Collection in Venice for employees and concessions for family membersbull Free provision of water and mineral salts in the plants during the summerbull Distribution of fuel vouchers to employees for the Christmas holidays
Summer Play Schemes and Cregraveches
In 2016 the summer play schemes for the children of employees at Fiorano and Mordano were continued for the fifth year in succession Seven different centers across the area between Modena and Bologna hosted 85 children (twice the number of the previous year) the company paid the fee for two weeks attendanceWhats more since 2013 the company has negotiated special terms with local cregraveches which now offer a number of places for employeesrsquo children at a reduced fee
2016 Sustainability Report28
Human Resources Management Policies
In July 2015 on renewal of the in-house supplement to the national employment contract the Management introduced a new phase in its relations with the Trade Unions with the aim of continuing and improving the good relationships enjoyed for decadesThe new company contract applied for all employees at the Fiorano headquarters includes more facilitations for part-time working the willingness to allow flexitime where feasible and the commitment to invest in staff training in order to generate full benefits from intellectual capital The company and the trades unions agreed on a plan to improve efficiency fundamental for maintaining the current level of competitiveness by establishing improvement in Production Efficiency and EBITDA as criteria for the payment of the new Performance Bonus The individual Attendance Score is considered together with these parameters The 2016 Performance Bonus in its first year of application was 20 higher than that paid in 2015 In addition in response to employees requests the Company increased the number of approved canteens extending the choice available and also introduced weekly laundering of work clothing for all production workersWith regard to applications for severance pay advances the Company confirms its commitment to continuing the policy implemented so far
Training
Florim believes that in-house training plays a key role in the companyrsquos development and provides a tool for stimulating and fulfilling the potential of its human resourcesMore than 10600 training hours were provided in 2016 to 847 people with an average of more than 11 hours of training per employee New projects included a 6-month on-line English language course which attracted a large number of participants and two highly structured training courses for the sales division and the communication department A retraining program for workers at the Mordano plant was also completed it comprised 4 technical courses attended by 31 people for an average of 13 hours per person Another new entry for 2016 was an innovative procedure for acquiring information about training needs using an on-line questionnaire available to all employees as well as line managers specific recommendations The Master in Florim project is discussed in depth in the specific section
Health and Safety
Florim was the first Italian ceramics manufacturer to receive BS OHSAS 18001 (Occupational Health amp Safety Assessment Series) certification from TUumlV this international standard certifies the implementation of an internal management system oriented towards occupational health and safetyThis major award confirms the companys constant commitment to the well-being of its employees Every year in addition to engineering inspections and machinery maintenance a number of hours of safety training are organised to raise awareness among workers and supervisors Specifically in 2016 2849 hours were dedicated to safety training and a significant reduction in injury rates was recordedMoreover BLSD refresher courses are continuously held for the team of Florim employees trained in first-aid operations and the use of the defibrillators available on site
2012 2013 2014 2015 2016
Number of workplace injuries 63 62 74 56 43
2016 Sustainability Report 29
The Master in Florim organized for the fourth time in 2016 is a vocational training project which aims to bridge the gap between education (high school or university) and the world of work The program which is one of the companys Social Responsibility projects sets out to help young people to get to know the company through a well structured work experience plan It offers a distinctively northern European approach with a method which alternates classroom teaching with internships in the various areas of the company Participants new university or high school graduates specialising in various subjects all below 30 years of age are therefore able to gain hands-on experience of all Florim departments from RampD to the production process and product distribution for an all-inclusive vision The MASTER courses ambitious aim is to match the individual participants talents with the companys real needs At the end of each edition the company hires all or some of the selected candidates enabling it to acquire new skills new experiences and new energy
Master 40 in figures
20 young people taking part6 months of training13 external lecturers264 hours of classroom teaching392 hours of practical training4 company visits (Ferrari Tetrapak Cremonini and Ducati)50 days of work experience on rotation involving 15 departments1 month of project work
The projects prestige is enhanced by its economic context since Florim pays the young participants for the entire period and its aim is to deal with the thorny problem of youth unemployment The Master has won approval from various faculties at major Italian universities The project was also a winner in the Emilia-Romagna Regions 2016 awards for Corporate Social Responsibility projects run in the local community A prize in the ldquoBusiness and Educationrdquo category was assigned to the Master project which aims to give young people the skills required for sustainable development
Master in Florim
2016 Sustainability Report
Watch the videoof the 4th edition
2016 Sustainability Report30
Local Community amp Culture
This chapter describes a number of programs Florim runs for the local community in the area where it originated and where it has been working for more than 50 years
Politecnico di Milano
Since the 20052006 academic year Florim has been a partner sponsor of a large number of Postgraduate Courses run by POLIDesign the Politecnico di Milano consortium which organizes its Master Degree coursesAlso in association with POLIDesign since 2012 Florims Milan showroom has hosted several design events for architects and designers of every nationality
Aziende modenesi per la RSI
ldquoAziende Modenesi per la RSIrdquo an independent open inclusive association of companies in the Modena area which believe in the principles and values of Corporate Social Responsibility was established by public deed on 30 September 2014 with Florim as a founding member Florim hosts the associations member companies every year to discuss the various topics proposed
Premio Lucchese
The Premio Lucchese presented for the twenty-ninth time in 2016 was established in memory of Giovanni Lucchese and consists of scholarships awarded to students at the ldquoAlessandro Voltardquo Technical High School in Sassuolo who graduate with full marks The award ceremony held every year at the Florim Gallery in association with Societagrave Ceramica Italiana of Bologna includes a talk given by a leading personality on a topic of current interest to an audience of eager young listeners
Intrapresaelig Collezione Guggenheim
As befits a company that combines the values of its local community and historic and artistic heritage with a flair for research and innovation Florim recently launched a partnership with the Peggy Guggenheim Collection Since its foundation Florim has always had a unique ability to incorporate the true cultural significance of its industry in its business model and by this project once again confirms its commitment to promoting art by supporting a collection of extraordinary beauty
Fondazione Ing Giovanni Lucchese
More than thirty years after the untimely death of Giovanni Lucchese ndash founder of what was then Floor Gres currently Florim ndash in 2013 his family established a Foundation in his name which since then has funded organizations and associations that support families in need in the ceramics district The Foundation also supports a variety of projects such as the summer play scheme for employees children the Premio Lucchese and the Florim HealthampTraining Center described in more detail below
The main projects undertaken in 2016 include the funding of the purchase of 10 defibrillators for the Municipality of Fiorano and the contributions made to the purchase of paediatric ambulances for the local area and to support the Parish charitable organizations and social services in the district
Watch the Premio Lucchese video
The project run jointly by Florim and Sassuolo Hospital adopts a completely new model combining industrial culture and healthcare in an original way to benefit the local people and community thanks to the coming-together of a ceramic coverings manufacturer and the public-private joint venture Ospedale di Sassuolo Spa Florim HealthampTraining is the synthesis of this idea an experimental center which promotes local training for healthcare and other staff health education and information advanced medical simulation and research
The Center
On the main Florim site and opened on 16 April 2014 the Center is 550 square meters in area and contains a modular lecture theatre able to seat over 100 people and a number of classrooms for seminars and lessons At its heart is a state-of-the-art control room crammed with technology that operates dummies capable of reproducing human functions of all kinds Advanced simulation is a major aid to maintaining the skills of emergency healthcare workers with a particular focus on pediatric and neonatal resuscitation
Health meetings
Designed as a space for community use the Center also aims to become a place where all sections of the population - workers schoolchildren parents teachers volunteers and even just members of the public - can learn about preventive health care and acquire first aid skills After the distribution to Florim employees of a questionnaire surveying their training needs and preferences a Center Scientific Committee of Sassuolo Hospital medical personnel was appointed and drew up a plan of bi-monthly ldquoHealth meetingsrdquo All meetings are led by doctors with expertise in the various topics who answer the many questions from the audience at the end of their talks Between its opening and the end of December 2016 the Center hosted 13 meetings on a variety of topics attended by about 1000 people including employees their family members and the community at large
Healthcare discounts for Florim employees
The project also includes a major welfare program for all Florim employees and their family members entitling them to discounts and shorter waiting times for specialist examinations and outpatient diagnostic tests performed on a private basis
American Heart Association
The world-famous American Heart Association (AHA) is the oldest and most respected American voluntary organization dedicated to the fight against cardiovascular diseases and strokes In 2015 the AHA via the Simaid International Training Center named the Florim HealthampTraining Center as an Authorized Training Site for basic and advanced cardiopulmonary resuscitation
Florim HealthampTraining Center
2016 Sustainability Report
Watch the Health amp Training Center video
2016 Sustainability Report32
Product Responsibility
Here we summarize the concept of Made in Florim denoting a product that encapsulates the companys core values passion innovation a constant commitment to improvement and corporate social responsibility
Florim product certifications
CE Marking guarantees the user that the materials purchased meet the requirements of the relevant regulations and that the characteristics concerned are virtually unchanged for all production lots It is a declaration of conformity which protects the consumerrsquos safety The presence of the CE Marking on packaging guarantees that Florim products comply with the relevant regulatory requirements
Ecolabel (EC Regulation 662010) is a certification granted to products which comply with ecological and performance criteria set at a European level concerning raw material extraction supplier selection manufacturing processes packaging distribution use and disposal The certified Florim collections are Architech Ecotech Reverse Walks 10 by Floor Gres and Pietra del Nord under the Rex brand
Several ceramic tile collections bearing the Florim brands have earned certification from Bureau Veritas for their pre-consumer recycled material content These articles are therefore fully eco-compatible and can meet the environmental sustainability requirements imposed by many international certifications
Florim is a member of the US Green Building Council (USGBC) the most important association which promotes the reduction of buildings negative impact on the environment To allow the effective monitoring a projects level of sustainability the USGBC has developed a certification procedure for the development of sustainable buildings which assess and certifies the sustainability of a building in its entirety Florim materials are able to help to gain LEED points in a number of areas (data available on the Florim brand websites)
Florim has achieved the prestigious Greenguard certification for all its products Issued by the American body UL Environment this certification aims to reduce indoor pollution caused by interior design systems and materials UL Environment thus aims to protect health by improving air quality and reducing peoples exposure to chemicals and other pollutants Florim has also achieved Greenguard Gold Certification which imposes even stricter limits to confirm that a given product is suitable for use even in locations such as schools and health care facilities
The EPD or Environmental Product Declaration is a document which defines the environmental impacts arising from production In 2016 Florim participated in the study - certified by the German organization IBU - performed on the ceramics industry average data which aims to raise international awareness of the excellence of the environmental standards achieved
Beyond the standardsMade in Florim products are a guarantee of safety highly innovative content and eco-friendliness The people who produce them work in a safe place and in ethically sustainable conditions Due to their nature all Florim products are guaranteed free from pollutant emissions do not accumulate electrostatic charges are frostproof and completely inert and are undamaged by contact with flames The Groups Internet sites and collection catalogues contain the technical data sheets which detail the product information (slip-resistance breaking strain abrasion resistance etc) for every collection as well as its recycled material content with the relative certificates
During the period under consideration no banned products were placed on the market and the company was not found guilty of any breaches of the law with regard to data protection or its marketing and communication activities
EU Ecolabel nr IT2104
2016 Sustainability Report 33
Quality SystemThe current ISO 9001 standards define quality as the ability to satisfy explicit or implicit needs via a product or a service A Quality System implies constant improvement of company processes in order to realise products that always satisfy the customerrsquos needs Further to the 2016 audit Florim obtained the renewal of its UNI EN ISO 90012015 certification for the design manufacture and sale of all categories of ceramic tile
Objective Indicator 2012 2013 2014 2015 2016
Continual improvement of control of the production process
Percentage of First Grade Product ()
924 943 942 952 956
Quality rate () 883 905 903 905 909
Scrap rate () 44 41 42 42 49
Productivity (sq mhour) 186 188 186 190 200
Improvements in sales performance and customer satisfaction
Innovation rate () 330 296 367 455 364
Coverage () 795 714 814 813 816
Total portfolio shippable within one month ()
911 837 888 893 897
Optimization of range and stocks
Obsolete stock () 172 126 165 120 69
Stock turnover rate () 13 15 16 15 16
Gradual elimination of disputes complaints and claims concerning service
Square meters affected by complaints ()
17 12 08 12 09
Complaints by number of order items ()
10 11 11 10 10
Gradual improvement in staff skill levels
Employee turnover () 15 23 04 04 12
KeyPercentage of first grade product percentage ratio between the square meters of first grade products and the total square meters transferred to stockQuality rate percentage ratio between the square meters of first grade product transferred to stock and the square meters leaving the pressesScrap rate percentage difference between square meters of material leaving the presses and square meters of product actually transferred to stockProductivity ratio between the square meters transferred to stock and the total hours worked in the plantInnovation rate ratio between square meters sold belonging to series designed in the last three years and total square meters sold Florim uses this indicator to assess the effectiveness of its design process in terms of salesCoverage percentage ratio between square meters available for immediate shipment and the square meters on orderTotal portfolio of orders shippable within one month percentage ratio between the square meters which can be shipped in 30 days and the square meters on orderObsolete stock percentage ratio between the square meters of substandard discontinued produce and the total square meters in stock Stock turnover rate ratio between the square meters sold and the square meters in stockSquare meters affected by complaints percentage ratio between the square meters affected by complaints and the square meters soldComplaints by number of order items percentage ratio between the number of complaints and the number of items orderedEmployee turnover percentage ratio between the number of employees leaving the company and being replaced and the workforce at the start of the year
2016 Sustainability Report34
Casamood - Neutra 60 Collection
2016 Sustainability Report 35
OUR COMMITMENTS
The promises we keptIn our last Sustainability Report we committed to achieving a large number of objectives the following are the outcomes we attained
Relaunch of the ldquoCEDIT ndash Ceramiche drsquoItaliardquo brand OBJECTIVE ACHIEVED
Launch of the FLORIM stone brand OBJECTIVE ACHIEVED
Installation of a new latest-generation kiln at the Mordano plant OBJECTIVE ACHIEVED
Transfer of the Moscow showroom to new premises SCHEDULED FOR 2017
Creation of a new gatehouse at the Mordano plantOBJECTIVE POSTPONED TO GIVE PRIORITY TO THE CONSTRUCTION OF THE NEW FACTORY
Introduction of ERP system at Florim USA OBJECTIVE ACHIEVED
Installation of a new spray dryer and raw material handling system at Florim USA
OBJECTIVE ACHIEVED
Economic Responsibility
Renewal of certification of the Florim environmental and energy management system
OBJECTIVE ACHIEVED
Award of new certifications for collections manufactured with a high recycled material content
OBJECTIVE ACHIEVED
Continuation of work to reduce environmental impacts at Mordano especially with the reduction of energy costs
OBJECTIVE ACHIEVED
Continuation of the work to remove asbestos cement roofing materials at the Mordano plant
OBJECTIVE ACHIEVED
Expansion of the system which conveys rainwater to the treatment plant OBJECTIVE ACHIEVED
Reduction of the noise emissions of the air filtering systems OBJECTIVE ACHIEVED
Increase of recycling targets through constant awareness-raising amongst all staff and optimisation of recycling facilities
OBJECTIVE ACHIEVED
Continuation of replacement of the diesel forklift trucks for use on outdoor yards with electric vehicles
OBJECTIVE ACHIEVED
Environmental Responsibility
Running of fourth edition of Master Florim course with new procedures OBJECTIVE ACHIEVED
Creation of an internal refreshment area for the Fiorano office staff OBJECTIVE ACHIEVED
Improvement of corporate welfare through the activation of new free services and discounts tailored to employees needs
OBJECTIVE ACHIEVED
Continuation of the health meetings for the local community in association with Ospedale di Sassuolo Spa
OBJECTIVE ACHIEVED
Organization of new community events at Florim Gallery OBJECTIVE ACHIEVED
Organization of Florim Family Day 2016 A PARTY WAS ORGANISED FOR EMPLOYEES
Social Responsibility
2016 Sustainability Report36
The targets we set for ourselvesWe aim to achieve the following objectives in 2017
Economic Responsibility
Construction of a new factory at Mordano to produce large slabs
Launch of the project to unite the Florim spa sales organizations
Total restyling of the corporate and brand Internet sites
Launch of the HUB project - Intranet CRM Marketing Automation
New plants at Florim USA a press two sorting lines a polishing and rectifying line
New working spaces and cloakrooms for technical staff at the American plant
Environmental Responsibility
Purchase of a new cogenerator for the Mordano plant
Introduction of a new rainwater collection system at Fiorano
Land reclamation project involving covering of the Rio Spezzano stream at Fiorano
Implementation of new software for continual monitoring of energy impacts at Fiorano
Modernisation of the compressor room to improve energy impacts at Mordano
Increase of recycling targets through constant awareness-raising amongst all staff and optimisation of recycling facilities
Continuation of replacement of the diesel forklift trucks for use on outdoor yards with electric vehicles
Social Responsibility
Improvement of corporate welfare through the activation of new free services and discounts tailored to employees needs
Continuation of the health meetings for the local community in association with Ospedale di Sassuolo Spa
Organization of new community events at Florim Gallery
Organization of a new event for Florim spa employees
New offices for hospitality and events staff at Fiorano
2016 Sustainability Report 37
FLORIM USA
Profile and Economic ResponsibilityFlorim USA with registered office at Clarksville - Tennessee - and its subsidiary Florim Solution Inc have been part of the Florim Group since 2000 The Florim USA manufacturing plant one of the largest most technologically advanced in the United States produces porcelain stoneware tiles for the residential market and undertakes commercial projects in North America During the last few years Florim USA has implemented a growth and process optimization strategy which has generated significant technological progress with more innovations planned for the future The strategy adopted will put Florim USA at the worldwide state of the art in porcelain stoneware tile manufacture
In 2016 of the 18 million USD invested 147 was allocated for installation of a latest-generation raw material handling system and a large spray-dryer with an innovative sorting system Improvements were made to other parts of the process to increase their efficiency leading to a further reduction in emissions and scrap rates Additional investments are planned during 2017 to continue this dual trend of rising production with mitigation of environmental impact
The new Florim Flagship Store in New York (152 Madison Avenue 32nd Street)
2016 Sustainability Report38
Environmental ResponsibilityFlorim USA implements the same environmental policy as Florim and is committed to achieving the following objectives
bull reduction of the energy used in the production processbull improvement of the waste management process with a focus on recovery and reusebull introduction of new more eco-efficient technologiesbull adoption of integrated management systems
Florim USA has been pursuing a strategy of careful management of its operations and environmental impact for a number of years Here we summarise the main actions taken and the results achieved in 2016
bull installation of a latest-generation spray-dryer in 2016bull installation of an innovative raw material handling system in 2016bull 100 recycling of wastewater within the processbull optimisation of the management of water bottles with elimination of about 34200 of them per annumbull reuse of almost all production scrap (+99)bull 157000 kg of cardboard recycled in 2016bull award of two different types of product certificationbull 9300 kg of plastic recycledbull recycling of 17 complete trucks of pallets
Environmental Projects and Awards
Florim USA has received Clarksville Montgomery County Green Certification (CMCGC) CMCGC is a program designed to help companies learn and implement best practices in the area of environmental stewardship to sustain the local communityrsquos resources through a series of free workshops taught by local environmental specialists Since 2014 Florim has allocated some of its Environment Managers time for the running of these workshopsFlorim USA earned this green company certification thanks to a large number of projects first and foremost the one which eliminated the use of disposable water bottles replaced with individual reusable bottles provided by the company and a series of fill-up stations About 34200 bottles are removed from the waste cycle every year
During the latest phase of its plant optimization Florim USA has implemented a thorough construction material reuse policy In the various stages of demolition of the old plants including the old storage silos the concrete debris was recovered and reused in other construction worksThis project alone generated 11500 tons of recycled aggregate as well as several hundred tonnes of metal sold to a recycling firm
Environmental management system and eco-compatible products
Florim USArsquos products help builders and designers to meet the requirements for sustainable buildings as defined by the United States Green Building Council (USGBC) through the LEED Green Building Rating System This protocol evaluates and certifies the environmental sustainability of a building as a unit from its design to its day to day management To gain LEED credits many of the Florim USA product lines contain a significant percentage of recycled material (40 or more)This feature contributes to an increase in the LEED score in the projects where these products are installed In 2014 Florim USA together with a large number of other US tile manufacturers and the Tile Council of North America drew up a type III environmental product declaration (EPD) certified under the ISO 14025 standard This ceramic tile life-cycle analysis enables Florim USA products to gain LEED points under the new LEED v4 protocol
2016 Sustainability Report 39
Water use (gallonsper million square feetof finished tiles)
208137 216246 204962 195280 194268
Energy use
2012 2013 2014 2015 2016
Cubic feet of natural gas per million square feet of finished tiles 9343383 9149721 8331170 8390503 8380000
kWh per million square feet of finished tiles 510972 491171 450594 465976 490300
Emissions
Particulate material lt 21024 tonnes per annum
SO2 (sulphur dioxide) lt 1674 tonnes per annum
VOC (volatile organic compounds) lt 1245 tonnes per annum
NOx (oxides of nitrogen) lt 1501 tonnes per annum
Environmental performance indicators ndash summary
The following are the main environmental indicators related to the impact and performance of Florim USA during 2016
Pre-consumer recycled material
Its internal material recycling processes enable the company to minimise its environmental impact since most of the material which would otherwise be sent to landfills or other waste treatment centers is reusedbull Wastewater is entirely recycled within the production process without any discharge into the municipal drainsbull The material in the collection bags from the tile body and glaze preparation areas the press and glaze application is entirely recycled within the processbull All scrap fired tiles are entirely recycled within the processbull 157000 kg of cardboard was sold to an external recycled material dealerbull 17 trucks of unusable wooden pallets were sold to a pallet regeneration companybull About 9300 kg of waste shrink-wrap plastic film was recovered and recycled
Post-consumer recycled material
About 82000 kg of glass was removed from the flow of waste destined for the local landfill and recycled within the process Florim USA has signed an agreement with the local landfill for consignment of all the glass it handles which is collected and set aside for recycling
Water use disposal and reuse
The water used during the production process is recycled continually therefore no water is discharged into the municipal drains
The 2016 emissions figures are in line with those for previous years well below the standards laid down
Water use 2012 2013 2014 2015 2016
Water use (gallons per million square feet of finished tiles) 216246 204962 195280 194268 203928
2016 Sustainability Report40
Social Responsibility
Employees
The Florim USA workforce comprises 348 staff employed at the production site the Clarksville and Nashville outlet stores and the Florim Solution offices Of the 348 employees 273 are blue-collar workers and 75 office staff 5 employees are Italians on secondment to the United States Florim USA offers a number of benefits to full time employeesbull health and dental care insurancebull Vision insurancebull life insurance for employees and optionally for family membersbull temporary and permanent disability supportbull employee pension plan
2012 2013 2014 2015 2016
Workplace injuries 50 41 22 29 27
The Employee Assistance Program (EAP) also offers support to employees and their families in the event of psychological difficulty or other problems that can have a negative impact on their quality of life Florim USA supports all the costs of the program
Equal opportunities
Florim USA provides equal opportunities in all employment practices to all qualified employees and applicants regardless of race colour religion gender national origin age disability or membership of the armed forces or any other category protected by federal state or local laws
Health and safety
FLORIM USA is committed to ensuring a safe healthy workplace for all employees It therefore replaces old and obsolete equipment with new technologically more modern machinery and updates safety plans as new information gradually becomes availableAs well as an internal supervisor Florim USA has also appointed a health and safety committee which constantly monitors the plans effectiveness and makes any changes requiredThere are currently 20 plant employees who hold CPRfirst aid qualifications They occupy a variety of positions and work different shifts within the plant and have volunteered to attend training courses sponsored by the company for the award of these qualifications
Training
In 2016 every Florim USA employee attended an average of about 25 hours of training The training provided covered the operating procedures for the new equipment the main safety plans and the procedures for use of existing equipment for new employeesAll new staff undergo specific training for their department focusing on the safety-related aspects of the department concerned as well as more generalized safety training
Some of these themes includebull safe correct use of forklift trucksbull training on work in confined spacesbull shutdownwarning procedures and safe electrical practicesbull safe lifting procedures
2016 Sustainability Report 41
Florim USA ndash (Clarksville Tennessee)
For employees wishing to continue their education Florim USA offers assistance through the Educational Assistance Program It provides aid with the cost of education and textbooks and is available for any employee wishing to study for a technical qualification a diploma or a degreeThe plant staff training and education plan also includes various training schemes at Florim Italy where employees are instructed in the use of new equipment before it is installed at the American plantThroughout 2016 Florim USA will continue to provide a free e-learning course on its website for architects engineers and contractors (AEC) to improve their knowledge of sustainable porcelain stoneware tiles
Employee welfare activities
Florim USA employee picnic - In 2016 the company once again held its annual picnic for employees offering them a wide variety of foods games activities and live shows in an event which provided an unforgettable days enjoyment Within the event participants received prizes in the form of vouchers and gifts
Employee anniversary dinner - 2016 again saw the usual dinner to honour Florim USA employees with 5 10 15 20 or more years of service A special evening event was held in the presence of the Chairman and the other managers to celebrate the loyalty and hard work these employees have contributed during their careers with the firm
2016 Sustainability Report42
Local Community
During 2016 Florim USA continued to provide its support to a number of projects in its local areaSome of the main projects include
Scholarships - As part of its work to support the local community Florim has an established scheme which awards scholarships to deserving students at the Austin Peay State University in memory of Florim Group founder Giovanni Lucchese In December 2016 a delegation of Florim representatives attended a scholarship presentation lunch at the Austin Peay State University hosted by the President of the University
Montgomery County Green Certification Program - Florim USA staff actively participate in the Montgomery County Green Certification Program which aims to help companies learn and implement best practices with regard to safeguarding the environment and environmental resources
Donations - In 2016 the company again made a large number of donationsbull book collection for the Austin Peay State University Employees made a generous donation of used books in good condition for children and young people of the APSU in the hope of further promoting the education of future generationsbull to Community Cares the national organization that promotes the acceptance and social inclusion of individuals with Downs Syndromebull to the Aspire Clarksville Foundation a 501(c)(3) charitable foundation whose mission is to continuously improve the economy and the livability (quality of life) of the community by attracting significant capital investment and expansion by businesses and corporations thereby creating better opportunities and higher paying jobs for residentsbull to the Alzheimerrsquos Association a non-profit voluntary organization dedicated to the care and support of Alzheimers Disease sufferers and research into the condition Its aim is to eliminate the disease through the advancement of research to provide and enhance care and support for all affected and to reduce the risk of dementia through the promotion of brain health
Other activities - Every year Florim USA participates in the United Way Drive initiative to support local non-profit organizations which provide economic assistance and psychological support to persons in difficulty
Florim USA provides regular support to the Salvation Army by collecting canned foods for persons in needIn 2016 the company again organised a canned food collection for Manna Cafeacute in Clarksville TN Manna Cafeacute is a local non-profit organization based in Middle Tennessee with the primary mission of meeting peoples fundamental need for food before encouraging them to permanently change their lives for the better More than 15 of the population in Montgomery County are affected by food insecurity (about 28000 people) The percentage of children affected is about 215 a third of whom are excluded by income from federal programs such as free school mealsFinally donations were made tobull American Lung Association the leading organization working to save lives by improving lung health and preventing lung disease through research and educationbull Cheer for a Cure an organization that gives money directly to afflicting families who have a loved one suffering from cancer and need assistance to alleviate the added financial stressbull Habitat for Humanity Since 1992 Habitat for Humanity in Montgomery County Tennessee has worked with 93 low-income families with more than 210 children to revitalise various parts of Clarksville-Montgomery County by building new homes
2016 Sustainability Report 43
Quality SystemFlorim USA works under a Quality System certified to UNI EN ISO 9001 standards The following are some of the figures in brief
Objective Indicator 2012 2013 2014 2015 2016
Optimisation of control of the production process
Percentage of First Grade Product ()
932 917 940 949 9510
Quality rate () 883 857 893 906 909
Scrap rate () 56 65 48 45 45
KeyPercentage of first grade product ratio between square feet of first grade material and total square feet transferred to stockQuality rate ratio between square feet of first grade material transferred to stock and square feet pressedScrap rate ratio between square feet pressed and square feet of product actually transferred to stock
Other ActivitiesFlorim USA and trade shows
In 2016 Florim USA participated at a number of shows and events including Coverings the AIA Tennessee Convention Hardscape North America Total Solutions Plus Neocon International Pool - Spa and Patio Expo These events targeted at the various categories of industry professionals such as dealers and designers gave Florim USA the opportunity to present its new range of indoor and outdoor products
Design Center
In December 2015 Florim USA opened a design center showroom in Nashville (TN) in a strategic location close to the airport and the city center With a spacious area to host individual CEU presentations and workshops this design center has the potential to be a major resource for local architects In 2016 it was also awarded the ldquoOutstanding Boothrdquo booth prize at the 33rd edition of the Annual Home Decorating and Remodeling Show The location is the ideal place for sharing ideas finding inspiration and putting professionals and architects in touch with each other
Florim Nashville Design Center
2016 Sustainability Report44
GRI International Sustainability Indicators SDGsThe information below illustrates the correspondence between the Florim (Italian companies) 2016 Sustainability Report the GRI-G4 guidelines and the icons of the Sustainable Development Goals (SDGs) definitively adopted by the United NationsA description of the SDGs is available at wwwglobalcompactnetworkorg
GRI indicators
Description Page Reference to SDGs
1 Strategy and Analysis
G4-1 Statement from the most senior decision-maker of the organization 5
2 Organization profile
G4-3 Name of the organization 2
G4-4 Primary brands products andor services 9
G4-5 Location of the organizations headquarters 9
G4-6 Number and names of the countries where the organization operates 9
G4-7 Nature of ownership and legal form 14
G4-8 Markets served 9
G4-9 Scale of the organization 8 8
G4-10 Significant changes regarding size structure or ownership 8
G4-11 Employees covered by National Collective Bargaining Agreement 27
G4-12 Describe the supply chain 16
G4-13Significant changes regarding the organizationrsquos size structure ownership or its supply chain
Reporting process
launched
G4-14 Precautionary principle 22
G4-15 List of external commitments in which the company is involved 22 32 33
G4-16 Associations or interest groups in which the company is involvedwwwflorimit gt
about us gt partnerships
3 Identified material aspects and boundaries
G4-18 Process used to define the report content 6
G4-19 Material aspects 16
G4-20 Boundaries of each material aspect 6
G4-21 Boundaries of each material aspect outside the organizationPartial reporting
(pages 6 16)
G4-22 Explanation of the effect of any restatements of information provided in previous reports 6
G4-23Significant changes from previous reporting periods in the scope boundaries or measurement methods
6
3 Stakeholder engagement
G4-24 List of stakeholders 15
G4-25 Identification of stakeholders 15
G4-26 Stakeholder engagement 6 16
G4-27 Key topics and concerns that have been raised through stakeholder engagement 16
4 Boundary of the Report
G4-28 Reporting period 6
G4-29 Date of publication 2
G4-30 Reporting cycle 6
G4-31 Contacts and addresses for additional information 46
5 GRI Content Index
G4-32 Reporting option chosen 6 7
G4-33 External assurance of ReportThe Report is not
externally assured
2016 Sustainability Report 45
GRI indicators
Description Page Reference to SDGs
6 Governance
G4-34 Governance structure 14
7 Ethics and integrity
G4-56 Values principles standards and norms of behavior 13 16
Economic performance indicators
EC1 Direct economic value generated and distributed 19 25789
EC5 Wages 27 158
EC7 Development and impact of infrastructure investments and services supported 23 24 31 257911
Environmental performance indicators
G4-EN2 Percentage of materials used that are recycled input materials 17 22 23 812
G4-EN3 Energy consumption within the organization 24 781213
G4-EN6 Reduction of energy consumption 17 24 71213
G4-EN7 Reductions in energy requirements of products and servicesPartial reporting
(page 22)71213
G4-EN8 Total water withdrawal by source 17 23 6
G4-EN10 Percentage and total volume of water recycled and reused 17 21 23 612
G4-EN11 Biodiversity 23 615
G4-EN15 Total indirect greenhouse gas emissions by weight 25 3121315
G4-EN16 Total indirect greenhouse gas emissions by weight 25 3121315
G4-EN19 Reduction of greenhouse gas emissions 8 24 1315
G4-EN21 NOx SOx and other significant air emissions 25 31215
G4-EN22 Total water discharge by quality and destination 23 6
G4-EN23 Total weight of waste by type 17 22 3612
G4-EN27 Impact mitigation of environmental impacts of products and services 23 68121315
G4-EN29 Monetary value of significant fines 22 16
G4-EN30 Significant environmental impacts of transporting products and goodsmaterialsPartial reporting
(page 25)111213
Social performance indicators
G4-LA1 Total number and rates of new employee hires and employee turnoverPartial reporting
(pages 17 27)8
G4-LA6 Workplace injury ratesPartial reporting
(page 17)38
G4-LA9 Average hours of training per year per employee 28 48
G4-LA12Composition of governance bodies and breakdown of employees according to gender age group etc
27 58
G4-LA13 Ratio of basic salary and total remuneration of women to men 27 5810
Society
G4-SO1 Operations with local community engagement 12 31 16
G4-SO3 Operations assessed for risks related to corruptionPartial reporting
(page 13)
Product responsibility
G4-PR1 Assessment of health and safety impacts for improvement 23 32
G4-PR3 Type of information about products and services required by the procedures 32 12
G4-PR5 Proceedings relating to customer satisfaction including surveys conducted to measure it 33
G4-PR6 Sale of banned or disputed products 32
G4-PR8 Number of substantiated complaints regarding breaches of privacy 32 16
2016 Sustainability Report46
Your Assessment
You are kindly requested to take a few minutes of your time to give us your assessment and any suggestions to enable us to improve future editions of our Sustainability Report
Click here to send us your feedback
To keep up to date with our business
Spazio CEDIT - interior (Milan)
wwwflorimiten
Florim Ceramiche
Florim4Architects
Florim_ceramiche
Florim Ceramiche spa
Florim Ceramiche
Florim Ceramiche
For any further information please feel free to contact our communications department comunicazioneflorimit
2016 Sustainability Report 47
Premio Lucchese - Florim Gallery (Fiorano Modenese - Modena Italy)
Intrapresaelig Guggenheim Collection - Massimo Bottura in Florim Gallery (Fiorano Modenese - Modena Italy)
Panathlon Christmas Gala - Florim Gallery (Fiorano Modenese - Modena Italy)
2016 Sustainability Report48
White Christmas Party - Florim Gallery (Fiorano Modenese - Modena Italy)
Cersaie - Mario Biondi in Florim Gallery (Fiorano Modenese - Modena Italy)
Dal buio alla luce - Social event at Florim Gallery (Fiorano Modenese - Modena Italy)
2016 Sustainability Report 49
Florim Gallery entrance (Fiorano Modenese - MO)
2016 Sustainability Report52
Florim Ceramiche spaVia Canaletto 24 - 41042 Fiorano Modenese (Modena Italy) - Tel +39 0536 840111 - wwwflorimit
2016 Sustainability Report 17
FinFloor consolidated (in thousands of Euro) 2012 2013 2014 2015 2016
Net earnings 315344 325853 329533 374094 406759
EBIDTA 59608 72986 84395 98115 107186
Operating result 35717 50996 58508 66255 71028
Gross cash flow 52710 68312 83274 97268 109148
Net profit 26103 35732 36433 43324 49347
Net financial indebtedness (127730) (96500) (54524) (27326) (12508)
Final inventory 95514 84432 90283 92795 96721
Net shareholders equity 186905 218847 276916 332721 369937
Total investments 32572 48780 41584 34215 53531
2012 2013 2014 2015 2016
Waste produced (t) 30228 21170 22300 30862 34423
Recycled third-party waste (t) 4028 4190 1721 2570 5627
Total water consumption (msup3) finished product (t) 075 075 078 069 071
Recycled water percentage 100 100 100 100 100
Self-generated energy in relation to consumption 67 68 62 65 75
Investments in environmental management (euro000) 13617 2493 1995 465 6400
2012 2013 2014 2015 2016
Number of employees at 3112 1037 992 984 982 987
Total number of training hours 14690 9124 9056 7176 10606
Number of training hours on environment and safety 7572 4514 4200 3008 2489
Number of workplace injuries 63 62 74 56 43
Environmental and social profile figures refer to Florim Italy for Florim USA please see the relevant section (from page 37)
REPORTING
In brief
Economic Profile
Environmental Profile
Social Profile
2016 Sustainability Report18
Economic Responsibility
Comments on 2016 Economic Data
The Groups 2016 results were again good from every point of view
Compared to the previous year turnover increased by 87 leading thanks to careful management of production costs to an EBITDA of Euro 1071 million equivalent to 263 of turnover and a profit after tax of Euro 493 million
The companys financial data also significantly improved with a net financial position of Euro 125 million compared to Euro 273 million at the end of 2015 in spite of record technical investments of Euro 535 million and financial investments of Euro 11 million
Once again underlying the results achieved were large investments in latest-generation machinery and technologies painstaking research to develop materials with exceptionally high technical and design content human resources and projects for the increasingly direct promotion of Florims image and quality standard
Investments
The technical investments made in 2016 amount to Euro 535 million while Euro 11 million was spent on reacquiring 100 ownership of Maker srl followed by its amalgamation with Florim spa on 31 December The most important industrial projects included the continuation of the work on the Mordano plant which involved investments of Euro 26 million for the restructuring of the raw material preparation area and the doubling of production capacity for traditional porcelain stonewareThe investments of US$ 18 million at Florim USA were utilised to complete the renewal of the raw material preparation area and construct a new building for the technical organizationFinally about 9 million Euro was invested at Fiorano on various production line modernization projects
A creative hub for design style and new trends Milan once again confirms that it is the ideal setting for Florims investments and the opening of the all-new ldquoSpazio CEDITrdquo confirms the companys determination to strengthen its bonds with design professionals working in high-end interior design The culture of beauty art architecture and design are all integral to the genetic make-up of CEDIT ndash the historic Italian brand relaunched by Florim in 2016 ndash and dominate the display areas and the first six ceramic covering collections styled by famous names on the contemporary creative sceneOn two levels with a total floor area of more than 200 msup2 the space maintains the same stylistic identity as the one at Fiorano Modenese since they are both constructed to an architectural design intended to be replicated in CEDIT customers showrooms worldwide
Spazio CEDIT Watch theinauguration video
2016 Sustainability Report 19
Economic Value Generated and Distributed
The figures for the economic value generated and distributed provide a simple clear explanation of how Florim has created wealth and redistributed it to its stakeholders The table below contains the data from Florims 2016 financial statements approved by the Board of Directors on 30 March and certified by external auditorsThe economic value directly generated is represented by the total earnings for 2016 while the economic value distributed includes the costs incurred for suppliers and employees payments to the state (taxes) and the donations which had positive repercussions for the community to which Florim spa belongs
Heading 2014 2015 2016
Revenues 253125 269855 302521
Direct economic value generated 253125 269855 302521
Operating costs 135735 150951 168809
Employee wages and benefits 56985 58149 62418
Payments to providers of capital 7413 6399 11903
Payments to government 15738 13162 15382
Community investments 221 212 240
Economic value distributed 216092 228873 258752
Economic value retained 37033 40982 43769
KeyRevenues net sales plus revenues from financial investments and sale of assetsOperating Costs payments to suppliers non-strategic investments royalties payment facilitationsEmployee wages and benefits employee wages and benefits per employees (current payments)Payments to providers of capital all payments to the organizations providers of capitalPayments to government gross taxes and dutiesCommunity investments voluntary donations and investments in the communityEconomic value retained calculated as economic value generated less economic value distributed
The data in the table are in thousands of Euro and refer to the consolidated financial statements of the Italian companies only
KBIS (USA) - detail of the stand created with ldquoI Classici di Rexrdquo
2016 Sustainability Report20
Casa dolce casa ndash Argille 20 Collection
2016 Sustainability Report 21
Environmental ResponsibilityEffective environmental policy management energy saving and emissions reduction are amongst Florims strategic sustainability objectives
Our green projects in figures
2 highly-regarded process certifications
ISO 14001 (ENVIRONMENT)and ISO 50001 (ENERGY)
849873 MWh is the amount of electricity the
company succeeded in producing in-house during 2016
2 departments (marketing and communications)
engaged on digitizing advertising tools
8462 tons of CO2 NOT emitted
CO2
100 is the percentage of wastewater recycled
16000 msup2of photovoltaic panels covering
an area of 30000 msup2
75 is the percentage of the electricity consumed which is
produced in-house
4 latest-generation industrial kilns installed in
the last 3 years
4 different types of environmental product
certification
2 cogeneration plants to increase energy saving
and efficiency
1 laboratory for the development of contemporary design projects with a specific focus on the materials green
content
100is the percentage recycling of
industrial greenware waste in the production process
2016 Sustainability Report22
Certifications
System and process certifications
UNI EN ISO 14001TUumlV has awarded Florim the highly-regarded UNI EN ISO 14001 voluntary certification which confirms its compliance with a series of internally certified procedures intended to improve the internal environmental management system The decision to seek this certification springs from the desire to reconcile quality with efficiency and productivity while protecting the environment and community in which the company operates
UNI EN ISO 50001Thanks to a careful energy management policy and aided by the latest investments in the production area also intended to improve energy efficiency Florim was the worlds first ceramics manufacturer to obtain ISO 50001 certification of its Energy Management System
In addition to its environmental certifications Florim has also been awarded prestigious AEO (Authorized Economic Operator) status
Further to a lengthy and demanding audit process by the Customs Authorities in 2016 Florim was awarded AEO certification the first company in the Province of Modena to receive this major form of approval Authorised Economic Operator status guarantees the companys absolute compliance with customs and security requirements in its foreign trade
Environmental Management
Waste 2012 2013 2014 2015 2016
Total waste produced (t) 30228 21170 22300 30862 34423
Non-dangerous recyclable waste (such as paper and cardboard fired scraps plastic glass and wood) ()
989 982 985 991 989
Non-dangerous disposed-of waste (such as the waste picked up by the motor sweepers) ()
02 04 02 02 02
Dangerous recyclable waste (such as spent oil batteries and monitors) ()
00 01 01 01 00
Dangerous disposed-of waste (such as spent lime) () 01 13 12 07 09
Third-party waste recycled within the production process (t) () 4028 4190 1721 2570 5627
Besides recycling greenware waste from its own production cycle (not included in the table because the amount cannot be calculated) Florim also recycles third party waste
Florims operations have always been oriented towards optimization of impact on the local community and environment Thanks to the work of its research laboratories the support of all staff and the recent investment plans tangible results have been achieved The data provided below reveal that in spite of an increase in production of 8 compared to the previous year consumption remains low The companys commitment to environmental protection is all-inclusive and also comprises a focus on the district within which it operates One example is the total removal of all asbestos cement from the Fiorano Modenese plant and the creation of the new recycling station opened in 2015 and donated to the Local Authority as a public serviceAs in previous years during 2016 Florim was not fined for any breaches of environmental regulations or laws
Florim recycles and optimises within the production process all greenware scraps dust residues from filters and sludge from the process and rectification wastewater treatment system The waste produced is detailed in the table the significant differences between years are due mainly to the major demolition and subsequent reconstruction works undertaken at the Italian plants
Waste Management
2016 Sustainability Report 23
Water Resources
No environmental impact of wastewater discharges is specified since all the water from the production cycle is completely reused (100) All other effluents comply with legal requirements
The figure states the total cubic meters of water used per ton of finished product The water used in the Fiorano production process is drawn from private company-owned wells with water from the public main only used for non-industrial purposes The Mordano plant is supplied by an industrial water main Water use is measured by means of meter readings Four highly innovative dry rectifying plants have gone into production at Mordano since 2015 enabling the company to eliminate the physicalchemical treatment of the water used in the rectification process
WATER USE
2012
08
2013
08
2014
08
2015
07Total water consumption (msup3) finished product (t)
07
2016
All packaging used for Florim materials is made from recycled paper and parts of the coverings used to protect pallets of finished products consist of recycled plastic Whats more all the packaging used (boxes cardboard shrink wraps pallets etc) can be completely recycled by the end user The latest investments made include new eco-friendly packaging machines increasing the number of these machines installed to 15 These plants completely eliminate waste due to leftover inventory saving significant amounts of cardboard
Packaging and Coverings
As the materiality assessment states Florim has no significant impacts on the biodiversity of its local area since the company is located inside the Fiorano Modenese ceramics manufacturing district at least 5 Km from the nearest nature reserve at Salse di Nirano Florim takes special care over the choice of the raw materials used for its tile body mixes of which it is required to provide documentation guaranteeing compliance with the European Directives protecting wild birds (EU Dir 79409EEC) and habitats (EU Dir 9243EEC) and the United Nations Convention on the protection of biodiversity It has also introduced a software program - used at the 3 production plants (Italy and the USA) - for the management of data on the origin of raw materials such as quarry location distance from the factory recycled content declaration technical safety and radioactive content data sheets and the expiry of the quarrying permit issued by the government
Raw Materials and Biodiversity
2016 Sustainability Report24
Energy Management
There is no disputing that large amounts of energy are required to power the production processes of ceramic tile plants with consequent direct and indirect impacts on the local area and the environmentThe main indicator used to measure plants energy performance is the mean specific total energy consumption (TEJ) measured in GJt of product transferred to stock As the table below shows this figure is obtained by adding together heat consumption (NGJ) and electricity used (EEJ)
Parameter ndash Definition Unit of measurement
2012 2013 2014 2015 2016
NGJ Mean specific natural gas consumption in relation to the unit of weight of finished product transferred to stock
GJt 557 571 576 578 598
EEJ Mean specific electricity consumption in relation to the unit of weight of product transferred to stock
GJt 111 108 111 108 107
TEJ Mean total specific energy consumption in relation to the unit of weight of product transferred to stock
GJt 668 679 686 685 705
Self-generated electricity as a proportion of consumption
67 68 62 65 75
With two cogeneration plants (for the combined in-house production of heat and electricity) and 16000 msup2 of photovoltaic panels the company certainly sets a new benchmark for the entire ceramic tile industry 2016 saw the replacement of the Fiorano turbine set (the main component of the cogeneration plant) while the one in Mordano was kept in operation 247 factors which led to a 10 increase in in-house electricity production in relation to consumption To provide a clearer idea of the scale of the achievement the amount of electricity the company generated in-house in 2016 (849873 MWh) would cover the average annual consumption of about 37000 households (With consumption per household of 229 MWh - data from the latest ISTAT survey in 2012ndash calculated on the Italian average)
Photovoltaic Plant
kWp kWh produced kg of CO2 not emitted
270021 15937250 8462680
Good Practice
The head office organizations are also optimizing paper and energy consumption In addition to issuing and distributing the energy saving handbook for its offices the company is also trying to maximize savings on the raw material used and specifically the use of paper Internally the company only purchases reams of paper which carry environmental certification and the paper used in offices is collected separately for proper disposal Externally the company distributes a system of merchandising products made mainly from recycled paper and encourages the gradual digitization of its marketing tools as well as publishing all its catalogues in digital format on its Internet sites Florim offers its distributor companies an innovative digital touch screen tool with the pdf versions of the catalogues and other tools for the final consumerIn 2016 Florim decided to adopt a new payslip distribution procedure introducing an online processing system As well as providing employees with new functions and greater operating flexibility thanks to this system the company no longer prints out the monthly payslips saving paper ink and energy The scheme initially involving all office workers has the ambitious target of also including the staff of the Fiorano and Mordano plants
The 16000 square meter photovoltaic plant received recognition from GSE (Energy Management Services) as one of the most innovative installations of its type and from its commissioning (October 2011) up to December 2016 it produced the following results
2016 Sustainability Report 25
Atmospheric Emissions
The industrial facility emits greenhouse gases basically CO2 from the following main sourcesbull combustion from the burning of fossil fuels (such as natural gas)bull processes from the minerals in the raw materials any organic matter in the clays used and any organic additives in tile body mixes
In order to comply with Directive 200387EC (ETS - Emission Trading Scheme) Florim has been reporting and certifying its CO2 emissions since 2013
CO2 emissions 2013 2014 2015 2016
CO2 emissions (t) 102728 103462 111862 132960
CO2 emissions (t) Finished product (t) 033 033 033 035
Emissions from the production cycle 2013 2014 2015 2016
Particulate material (gmsup2 finished product) 223 130 098 118
Lead (gmsup2 finished product) 000 000 000 000
Fluorine (gmsup2 finished product) 014 018 013 012
The increase in CO2 is due mainly to the large increase in the square meters produced (+ 8) and the 247 use of the cogeneration plant However it should be noted that the cogeneration plant provided a 10 increase in in-house electricity generation with lower CO2 emissions than electricity purchased from the grid produced mainly using fossil fuels (source ISPRA Fattori di emissione atmosferica di CO2 e sviluppo delle fonti rinnovabili nel settore elettrico Rapporti [Atmospheric CO2 Emission Factors and Development of Renewables in the Electricity Sector Reports] 2122015)The ratio between CO2 emissions and tons of finished product produced increased because in 2016 the sale of spray-dried material to other companies rose compared to the previous year (emissions from this phase are included in the emissions count but there is no corresponding output of finished product)
In a change from previous years the new GRI-G4 guidelines also require reporting of nitrogen oxide and sulphur oxide emissions Nitrogen oxide (NOx) emissions are within the limits permitted under the integrated environmental authorisation Sulphur oxide (SOx) emissions are not reported here since this figure is not required by the IEA
Transport
The materiality study reveals that transport is a significant factor for both stakeholders and Florim itself The company is not able to measure the impact of transportation of finished product on the local area since all shipments are ex-works However Florim which has been introducing electric vehicles to replace its oldest most obsolete unleaded petrol forklifts for years now has further optimized the handling of materials thanks to the new highly-automated logistics hub created at the via Canaletto location In 2016 about 53 of the vehicles used on the companys premises were electric with no direct greenhouse gas emissions
2016 Sustainability Report26
CEDIT ndash Creative Composition
2016 Sustainability Report 27
Workforce Composition
In 2016 the workforce included 27 people with disabilities 6 women and 21 menBearing in mind the job descriptions arising from the specific industrial sector the breakdown between men and women is in line with the industry average Male office workers and executives earn an average of 10 more than women for jobs of equal responsibility Among blue-collar workers the difference is 7 The company had a total of 29 foreign employees 24 at Fiorano and 5 at Mordano
Manager Executive Office worker
2013 2014 2015 2016 2013 2014 2015 2016 2013 2014 2015 2016
Women 2 3 3 3 3 1 1 1 137 142 133 149
Men 18 21 20 18 21 24 25 28 127 132 128 132
Total 20 24 23 21 24 25 26 29 264 274 261 281
Office ancillary Blue-collar worker Total
2013 2014 2015 2016 2013 2014 2015 2016 2013 2014 2015 2016
Women 18 16 25 19 226 219 212 196 385 381 375 368
Men 64 68 79 64 376 358 356 377 607 603 607 619
Total 82 84 104 83 602 577 568 573 992 984 982 987
Social Responsibility
Employees amp Corporate welfare
Its employees are the heart and soul of Florim they provide its character and its DNA Since 2009 when the current major economic crisis began Florim has undertaken a number of income support programs for its workforce Below we summarise some of the ongoing programmes and others run in 2016bull Ending of the Income Support Program for the Mordano plantbull Agreement with Sassuolo Hospital under which Florim employees and their family members enjoy discounts and shorter waiting times for specialist examinations and outpatient diagnostic tests performed on a private basisbull Special agreements with local health facilitiesbull Tax advice at special rates bull Special terms for banking services with financial consultants on-sitebull Discounts on the purchase of Florim products for employees homesbull Free entry to the Peggy Guggenheim Collection in Venice for employees and concessions for family membersbull Free provision of water and mineral salts in the plants during the summerbull Distribution of fuel vouchers to employees for the Christmas holidays
Summer Play Schemes and Cregraveches
In 2016 the summer play schemes for the children of employees at Fiorano and Mordano were continued for the fifth year in succession Seven different centers across the area between Modena and Bologna hosted 85 children (twice the number of the previous year) the company paid the fee for two weeks attendanceWhats more since 2013 the company has negotiated special terms with local cregraveches which now offer a number of places for employeesrsquo children at a reduced fee
2016 Sustainability Report28
Human Resources Management Policies
In July 2015 on renewal of the in-house supplement to the national employment contract the Management introduced a new phase in its relations with the Trade Unions with the aim of continuing and improving the good relationships enjoyed for decadesThe new company contract applied for all employees at the Fiorano headquarters includes more facilitations for part-time working the willingness to allow flexitime where feasible and the commitment to invest in staff training in order to generate full benefits from intellectual capital The company and the trades unions agreed on a plan to improve efficiency fundamental for maintaining the current level of competitiveness by establishing improvement in Production Efficiency and EBITDA as criteria for the payment of the new Performance Bonus The individual Attendance Score is considered together with these parameters The 2016 Performance Bonus in its first year of application was 20 higher than that paid in 2015 In addition in response to employees requests the Company increased the number of approved canteens extending the choice available and also introduced weekly laundering of work clothing for all production workersWith regard to applications for severance pay advances the Company confirms its commitment to continuing the policy implemented so far
Training
Florim believes that in-house training plays a key role in the companyrsquos development and provides a tool for stimulating and fulfilling the potential of its human resourcesMore than 10600 training hours were provided in 2016 to 847 people with an average of more than 11 hours of training per employee New projects included a 6-month on-line English language course which attracted a large number of participants and two highly structured training courses for the sales division and the communication department A retraining program for workers at the Mordano plant was also completed it comprised 4 technical courses attended by 31 people for an average of 13 hours per person Another new entry for 2016 was an innovative procedure for acquiring information about training needs using an on-line questionnaire available to all employees as well as line managers specific recommendations The Master in Florim project is discussed in depth in the specific section
Health and Safety
Florim was the first Italian ceramics manufacturer to receive BS OHSAS 18001 (Occupational Health amp Safety Assessment Series) certification from TUumlV this international standard certifies the implementation of an internal management system oriented towards occupational health and safetyThis major award confirms the companys constant commitment to the well-being of its employees Every year in addition to engineering inspections and machinery maintenance a number of hours of safety training are organised to raise awareness among workers and supervisors Specifically in 2016 2849 hours were dedicated to safety training and a significant reduction in injury rates was recordedMoreover BLSD refresher courses are continuously held for the team of Florim employees trained in first-aid operations and the use of the defibrillators available on site
2012 2013 2014 2015 2016
Number of workplace injuries 63 62 74 56 43
2016 Sustainability Report 29
The Master in Florim organized for the fourth time in 2016 is a vocational training project which aims to bridge the gap between education (high school or university) and the world of work The program which is one of the companys Social Responsibility projects sets out to help young people to get to know the company through a well structured work experience plan It offers a distinctively northern European approach with a method which alternates classroom teaching with internships in the various areas of the company Participants new university or high school graduates specialising in various subjects all below 30 years of age are therefore able to gain hands-on experience of all Florim departments from RampD to the production process and product distribution for an all-inclusive vision The MASTER courses ambitious aim is to match the individual participants talents with the companys real needs At the end of each edition the company hires all or some of the selected candidates enabling it to acquire new skills new experiences and new energy
Master 40 in figures
20 young people taking part6 months of training13 external lecturers264 hours of classroom teaching392 hours of practical training4 company visits (Ferrari Tetrapak Cremonini and Ducati)50 days of work experience on rotation involving 15 departments1 month of project work
The projects prestige is enhanced by its economic context since Florim pays the young participants for the entire period and its aim is to deal with the thorny problem of youth unemployment The Master has won approval from various faculties at major Italian universities The project was also a winner in the Emilia-Romagna Regions 2016 awards for Corporate Social Responsibility projects run in the local community A prize in the ldquoBusiness and Educationrdquo category was assigned to the Master project which aims to give young people the skills required for sustainable development
Master in Florim
2016 Sustainability Report
Watch the videoof the 4th edition
2016 Sustainability Report30
Local Community amp Culture
This chapter describes a number of programs Florim runs for the local community in the area where it originated and where it has been working for more than 50 years
Politecnico di Milano
Since the 20052006 academic year Florim has been a partner sponsor of a large number of Postgraduate Courses run by POLIDesign the Politecnico di Milano consortium which organizes its Master Degree coursesAlso in association with POLIDesign since 2012 Florims Milan showroom has hosted several design events for architects and designers of every nationality
Aziende modenesi per la RSI
ldquoAziende Modenesi per la RSIrdquo an independent open inclusive association of companies in the Modena area which believe in the principles and values of Corporate Social Responsibility was established by public deed on 30 September 2014 with Florim as a founding member Florim hosts the associations member companies every year to discuss the various topics proposed
Premio Lucchese
The Premio Lucchese presented for the twenty-ninth time in 2016 was established in memory of Giovanni Lucchese and consists of scholarships awarded to students at the ldquoAlessandro Voltardquo Technical High School in Sassuolo who graduate with full marks The award ceremony held every year at the Florim Gallery in association with Societagrave Ceramica Italiana of Bologna includes a talk given by a leading personality on a topic of current interest to an audience of eager young listeners
Intrapresaelig Collezione Guggenheim
As befits a company that combines the values of its local community and historic and artistic heritage with a flair for research and innovation Florim recently launched a partnership with the Peggy Guggenheim Collection Since its foundation Florim has always had a unique ability to incorporate the true cultural significance of its industry in its business model and by this project once again confirms its commitment to promoting art by supporting a collection of extraordinary beauty
Fondazione Ing Giovanni Lucchese
More than thirty years after the untimely death of Giovanni Lucchese ndash founder of what was then Floor Gres currently Florim ndash in 2013 his family established a Foundation in his name which since then has funded organizations and associations that support families in need in the ceramics district The Foundation also supports a variety of projects such as the summer play scheme for employees children the Premio Lucchese and the Florim HealthampTraining Center described in more detail below
The main projects undertaken in 2016 include the funding of the purchase of 10 defibrillators for the Municipality of Fiorano and the contributions made to the purchase of paediatric ambulances for the local area and to support the Parish charitable organizations and social services in the district
Watch the Premio Lucchese video
The project run jointly by Florim and Sassuolo Hospital adopts a completely new model combining industrial culture and healthcare in an original way to benefit the local people and community thanks to the coming-together of a ceramic coverings manufacturer and the public-private joint venture Ospedale di Sassuolo Spa Florim HealthampTraining is the synthesis of this idea an experimental center which promotes local training for healthcare and other staff health education and information advanced medical simulation and research
The Center
On the main Florim site and opened on 16 April 2014 the Center is 550 square meters in area and contains a modular lecture theatre able to seat over 100 people and a number of classrooms for seminars and lessons At its heart is a state-of-the-art control room crammed with technology that operates dummies capable of reproducing human functions of all kinds Advanced simulation is a major aid to maintaining the skills of emergency healthcare workers with a particular focus on pediatric and neonatal resuscitation
Health meetings
Designed as a space for community use the Center also aims to become a place where all sections of the population - workers schoolchildren parents teachers volunteers and even just members of the public - can learn about preventive health care and acquire first aid skills After the distribution to Florim employees of a questionnaire surveying their training needs and preferences a Center Scientific Committee of Sassuolo Hospital medical personnel was appointed and drew up a plan of bi-monthly ldquoHealth meetingsrdquo All meetings are led by doctors with expertise in the various topics who answer the many questions from the audience at the end of their talks Between its opening and the end of December 2016 the Center hosted 13 meetings on a variety of topics attended by about 1000 people including employees their family members and the community at large
Healthcare discounts for Florim employees
The project also includes a major welfare program for all Florim employees and their family members entitling them to discounts and shorter waiting times for specialist examinations and outpatient diagnostic tests performed on a private basis
American Heart Association
The world-famous American Heart Association (AHA) is the oldest and most respected American voluntary organization dedicated to the fight against cardiovascular diseases and strokes In 2015 the AHA via the Simaid International Training Center named the Florim HealthampTraining Center as an Authorized Training Site for basic and advanced cardiopulmonary resuscitation
Florim HealthampTraining Center
2016 Sustainability Report
Watch the Health amp Training Center video
2016 Sustainability Report32
Product Responsibility
Here we summarize the concept of Made in Florim denoting a product that encapsulates the companys core values passion innovation a constant commitment to improvement and corporate social responsibility
Florim product certifications
CE Marking guarantees the user that the materials purchased meet the requirements of the relevant regulations and that the characteristics concerned are virtually unchanged for all production lots It is a declaration of conformity which protects the consumerrsquos safety The presence of the CE Marking on packaging guarantees that Florim products comply with the relevant regulatory requirements
Ecolabel (EC Regulation 662010) is a certification granted to products which comply with ecological and performance criteria set at a European level concerning raw material extraction supplier selection manufacturing processes packaging distribution use and disposal The certified Florim collections are Architech Ecotech Reverse Walks 10 by Floor Gres and Pietra del Nord under the Rex brand
Several ceramic tile collections bearing the Florim brands have earned certification from Bureau Veritas for their pre-consumer recycled material content These articles are therefore fully eco-compatible and can meet the environmental sustainability requirements imposed by many international certifications
Florim is a member of the US Green Building Council (USGBC) the most important association which promotes the reduction of buildings negative impact on the environment To allow the effective monitoring a projects level of sustainability the USGBC has developed a certification procedure for the development of sustainable buildings which assess and certifies the sustainability of a building in its entirety Florim materials are able to help to gain LEED points in a number of areas (data available on the Florim brand websites)
Florim has achieved the prestigious Greenguard certification for all its products Issued by the American body UL Environment this certification aims to reduce indoor pollution caused by interior design systems and materials UL Environment thus aims to protect health by improving air quality and reducing peoples exposure to chemicals and other pollutants Florim has also achieved Greenguard Gold Certification which imposes even stricter limits to confirm that a given product is suitable for use even in locations such as schools and health care facilities
The EPD or Environmental Product Declaration is a document which defines the environmental impacts arising from production In 2016 Florim participated in the study - certified by the German organization IBU - performed on the ceramics industry average data which aims to raise international awareness of the excellence of the environmental standards achieved
Beyond the standardsMade in Florim products are a guarantee of safety highly innovative content and eco-friendliness The people who produce them work in a safe place and in ethically sustainable conditions Due to their nature all Florim products are guaranteed free from pollutant emissions do not accumulate electrostatic charges are frostproof and completely inert and are undamaged by contact with flames The Groups Internet sites and collection catalogues contain the technical data sheets which detail the product information (slip-resistance breaking strain abrasion resistance etc) for every collection as well as its recycled material content with the relative certificates
During the period under consideration no banned products were placed on the market and the company was not found guilty of any breaches of the law with regard to data protection or its marketing and communication activities
EU Ecolabel nr IT2104
2016 Sustainability Report 33
Quality SystemThe current ISO 9001 standards define quality as the ability to satisfy explicit or implicit needs via a product or a service A Quality System implies constant improvement of company processes in order to realise products that always satisfy the customerrsquos needs Further to the 2016 audit Florim obtained the renewal of its UNI EN ISO 90012015 certification for the design manufacture and sale of all categories of ceramic tile
Objective Indicator 2012 2013 2014 2015 2016
Continual improvement of control of the production process
Percentage of First Grade Product ()
924 943 942 952 956
Quality rate () 883 905 903 905 909
Scrap rate () 44 41 42 42 49
Productivity (sq mhour) 186 188 186 190 200
Improvements in sales performance and customer satisfaction
Innovation rate () 330 296 367 455 364
Coverage () 795 714 814 813 816
Total portfolio shippable within one month ()
911 837 888 893 897
Optimization of range and stocks
Obsolete stock () 172 126 165 120 69
Stock turnover rate () 13 15 16 15 16
Gradual elimination of disputes complaints and claims concerning service
Square meters affected by complaints ()
17 12 08 12 09
Complaints by number of order items ()
10 11 11 10 10
Gradual improvement in staff skill levels
Employee turnover () 15 23 04 04 12
KeyPercentage of first grade product percentage ratio between the square meters of first grade products and the total square meters transferred to stockQuality rate percentage ratio between the square meters of first grade product transferred to stock and the square meters leaving the pressesScrap rate percentage difference between square meters of material leaving the presses and square meters of product actually transferred to stockProductivity ratio between the square meters transferred to stock and the total hours worked in the plantInnovation rate ratio between square meters sold belonging to series designed in the last three years and total square meters sold Florim uses this indicator to assess the effectiveness of its design process in terms of salesCoverage percentage ratio between square meters available for immediate shipment and the square meters on orderTotal portfolio of orders shippable within one month percentage ratio between the square meters which can be shipped in 30 days and the square meters on orderObsolete stock percentage ratio between the square meters of substandard discontinued produce and the total square meters in stock Stock turnover rate ratio between the square meters sold and the square meters in stockSquare meters affected by complaints percentage ratio between the square meters affected by complaints and the square meters soldComplaints by number of order items percentage ratio between the number of complaints and the number of items orderedEmployee turnover percentage ratio between the number of employees leaving the company and being replaced and the workforce at the start of the year
2016 Sustainability Report34
Casamood - Neutra 60 Collection
2016 Sustainability Report 35
OUR COMMITMENTS
The promises we keptIn our last Sustainability Report we committed to achieving a large number of objectives the following are the outcomes we attained
Relaunch of the ldquoCEDIT ndash Ceramiche drsquoItaliardquo brand OBJECTIVE ACHIEVED
Launch of the FLORIM stone brand OBJECTIVE ACHIEVED
Installation of a new latest-generation kiln at the Mordano plant OBJECTIVE ACHIEVED
Transfer of the Moscow showroom to new premises SCHEDULED FOR 2017
Creation of a new gatehouse at the Mordano plantOBJECTIVE POSTPONED TO GIVE PRIORITY TO THE CONSTRUCTION OF THE NEW FACTORY
Introduction of ERP system at Florim USA OBJECTIVE ACHIEVED
Installation of a new spray dryer and raw material handling system at Florim USA
OBJECTIVE ACHIEVED
Economic Responsibility
Renewal of certification of the Florim environmental and energy management system
OBJECTIVE ACHIEVED
Award of new certifications for collections manufactured with a high recycled material content
OBJECTIVE ACHIEVED
Continuation of work to reduce environmental impacts at Mordano especially with the reduction of energy costs
OBJECTIVE ACHIEVED
Continuation of the work to remove asbestos cement roofing materials at the Mordano plant
OBJECTIVE ACHIEVED
Expansion of the system which conveys rainwater to the treatment plant OBJECTIVE ACHIEVED
Reduction of the noise emissions of the air filtering systems OBJECTIVE ACHIEVED
Increase of recycling targets through constant awareness-raising amongst all staff and optimisation of recycling facilities
OBJECTIVE ACHIEVED
Continuation of replacement of the diesel forklift trucks for use on outdoor yards with electric vehicles
OBJECTIVE ACHIEVED
Environmental Responsibility
Running of fourth edition of Master Florim course with new procedures OBJECTIVE ACHIEVED
Creation of an internal refreshment area for the Fiorano office staff OBJECTIVE ACHIEVED
Improvement of corporate welfare through the activation of new free services and discounts tailored to employees needs
OBJECTIVE ACHIEVED
Continuation of the health meetings for the local community in association with Ospedale di Sassuolo Spa
OBJECTIVE ACHIEVED
Organization of new community events at Florim Gallery OBJECTIVE ACHIEVED
Organization of Florim Family Day 2016 A PARTY WAS ORGANISED FOR EMPLOYEES
Social Responsibility
2016 Sustainability Report36
The targets we set for ourselvesWe aim to achieve the following objectives in 2017
Economic Responsibility
Construction of a new factory at Mordano to produce large slabs
Launch of the project to unite the Florim spa sales organizations
Total restyling of the corporate and brand Internet sites
Launch of the HUB project - Intranet CRM Marketing Automation
New plants at Florim USA a press two sorting lines a polishing and rectifying line
New working spaces and cloakrooms for technical staff at the American plant
Environmental Responsibility
Purchase of a new cogenerator for the Mordano plant
Introduction of a new rainwater collection system at Fiorano
Land reclamation project involving covering of the Rio Spezzano stream at Fiorano
Implementation of new software for continual monitoring of energy impacts at Fiorano
Modernisation of the compressor room to improve energy impacts at Mordano
Increase of recycling targets through constant awareness-raising amongst all staff and optimisation of recycling facilities
Continuation of replacement of the diesel forklift trucks for use on outdoor yards with electric vehicles
Social Responsibility
Improvement of corporate welfare through the activation of new free services and discounts tailored to employees needs
Continuation of the health meetings for the local community in association with Ospedale di Sassuolo Spa
Organization of new community events at Florim Gallery
Organization of a new event for Florim spa employees
New offices for hospitality and events staff at Fiorano
2016 Sustainability Report 37
FLORIM USA
Profile and Economic ResponsibilityFlorim USA with registered office at Clarksville - Tennessee - and its subsidiary Florim Solution Inc have been part of the Florim Group since 2000 The Florim USA manufacturing plant one of the largest most technologically advanced in the United States produces porcelain stoneware tiles for the residential market and undertakes commercial projects in North America During the last few years Florim USA has implemented a growth and process optimization strategy which has generated significant technological progress with more innovations planned for the future The strategy adopted will put Florim USA at the worldwide state of the art in porcelain stoneware tile manufacture
In 2016 of the 18 million USD invested 147 was allocated for installation of a latest-generation raw material handling system and a large spray-dryer with an innovative sorting system Improvements were made to other parts of the process to increase their efficiency leading to a further reduction in emissions and scrap rates Additional investments are planned during 2017 to continue this dual trend of rising production with mitigation of environmental impact
The new Florim Flagship Store in New York (152 Madison Avenue 32nd Street)
2016 Sustainability Report38
Environmental ResponsibilityFlorim USA implements the same environmental policy as Florim and is committed to achieving the following objectives
bull reduction of the energy used in the production processbull improvement of the waste management process with a focus on recovery and reusebull introduction of new more eco-efficient technologiesbull adoption of integrated management systems
Florim USA has been pursuing a strategy of careful management of its operations and environmental impact for a number of years Here we summarise the main actions taken and the results achieved in 2016
bull installation of a latest-generation spray-dryer in 2016bull installation of an innovative raw material handling system in 2016bull 100 recycling of wastewater within the processbull optimisation of the management of water bottles with elimination of about 34200 of them per annumbull reuse of almost all production scrap (+99)bull 157000 kg of cardboard recycled in 2016bull award of two different types of product certificationbull 9300 kg of plastic recycledbull recycling of 17 complete trucks of pallets
Environmental Projects and Awards
Florim USA has received Clarksville Montgomery County Green Certification (CMCGC) CMCGC is a program designed to help companies learn and implement best practices in the area of environmental stewardship to sustain the local communityrsquos resources through a series of free workshops taught by local environmental specialists Since 2014 Florim has allocated some of its Environment Managers time for the running of these workshopsFlorim USA earned this green company certification thanks to a large number of projects first and foremost the one which eliminated the use of disposable water bottles replaced with individual reusable bottles provided by the company and a series of fill-up stations About 34200 bottles are removed from the waste cycle every year
During the latest phase of its plant optimization Florim USA has implemented a thorough construction material reuse policy In the various stages of demolition of the old plants including the old storage silos the concrete debris was recovered and reused in other construction worksThis project alone generated 11500 tons of recycled aggregate as well as several hundred tonnes of metal sold to a recycling firm
Environmental management system and eco-compatible products
Florim USArsquos products help builders and designers to meet the requirements for sustainable buildings as defined by the United States Green Building Council (USGBC) through the LEED Green Building Rating System This protocol evaluates and certifies the environmental sustainability of a building as a unit from its design to its day to day management To gain LEED credits many of the Florim USA product lines contain a significant percentage of recycled material (40 or more)This feature contributes to an increase in the LEED score in the projects where these products are installed In 2014 Florim USA together with a large number of other US tile manufacturers and the Tile Council of North America drew up a type III environmental product declaration (EPD) certified under the ISO 14025 standard This ceramic tile life-cycle analysis enables Florim USA products to gain LEED points under the new LEED v4 protocol
2016 Sustainability Report 39
Water use (gallonsper million square feetof finished tiles)
208137 216246 204962 195280 194268
Energy use
2012 2013 2014 2015 2016
Cubic feet of natural gas per million square feet of finished tiles 9343383 9149721 8331170 8390503 8380000
kWh per million square feet of finished tiles 510972 491171 450594 465976 490300
Emissions
Particulate material lt 21024 tonnes per annum
SO2 (sulphur dioxide) lt 1674 tonnes per annum
VOC (volatile organic compounds) lt 1245 tonnes per annum
NOx (oxides of nitrogen) lt 1501 tonnes per annum
Environmental performance indicators ndash summary
The following are the main environmental indicators related to the impact and performance of Florim USA during 2016
Pre-consumer recycled material
Its internal material recycling processes enable the company to minimise its environmental impact since most of the material which would otherwise be sent to landfills or other waste treatment centers is reusedbull Wastewater is entirely recycled within the production process without any discharge into the municipal drainsbull The material in the collection bags from the tile body and glaze preparation areas the press and glaze application is entirely recycled within the processbull All scrap fired tiles are entirely recycled within the processbull 157000 kg of cardboard was sold to an external recycled material dealerbull 17 trucks of unusable wooden pallets were sold to a pallet regeneration companybull About 9300 kg of waste shrink-wrap plastic film was recovered and recycled
Post-consumer recycled material
About 82000 kg of glass was removed from the flow of waste destined for the local landfill and recycled within the process Florim USA has signed an agreement with the local landfill for consignment of all the glass it handles which is collected and set aside for recycling
Water use disposal and reuse
The water used during the production process is recycled continually therefore no water is discharged into the municipal drains
The 2016 emissions figures are in line with those for previous years well below the standards laid down
Water use 2012 2013 2014 2015 2016
Water use (gallons per million square feet of finished tiles) 216246 204962 195280 194268 203928
2016 Sustainability Report40
Social Responsibility
Employees
The Florim USA workforce comprises 348 staff employed at the production site the Clarksville and Nashville outlet stores and the Florim Solution offices Of the 348 employees 273 are blue-collar workers and 75 office staff 5 employees are Italians on secondment to the United States Florim USA offers a number of benefits to full time employeesbull health and dental care insurancebull Vision insurancebull life insurance for employees and optionally for family membersbull temporary and permanent disability supportbull employee pension plan
2012 2013 2014 2015 2016
Workplace injuries 50 41 22 29 27
The Employee Assistance Program (EAP) also offers support to employees and their families in the event of psychological difficulty or other problems that can have a negative impact on their quality of life Florim USA supports all the costs of the program
Equal opportunities
Florim USA provides equal opportunities in all employment practices to all qualified employees and applicants regardless of race colour religion gender national origin age disability or membership of the armed forces or any other category protected by federal state or local laws
Health and safety
FLORIM USA is committed to ensuring a safe healthy workplace for all employees It therefore replaces old and obsolete equipment with new technologically more modern machinery and updates safety plans as new information gradually becomes availableAs well as an internal supervisor Florim USA has also appointed a health and safety committee which constantly monitors the plans effectiveness and makes any changes requiredThere are currently 20 plant employees who hold CPRfirst aid qualifications They occupy a variety of positions and work different shifts within the plant and have volunteered to attend training courses sponsored by the company for the award of these qualifications
Training
In 2016 every Florim USA employee attended an average of about 25 hours of training The training provided covered the operating procedures for the new equipment the main safety plans and the procedures for use of existing equipment for new employeesAll new staff undergo specific training for their department focusing on the safety-related aspects of the department concerned as well as more generalized safety training
Some of these themes includebull safe correct use of forklift trucksbull training on work in confined spacesbull shutdownwarning procedures and safe electrical practicesbull safe lifting procedures
2016 Sustainability Report 41
Florim USA ndash (Clarksville Tennessee)
For employees wishing to continue their education Florim USA offers assistance through the Educational Assistance Program It provides aid with the cost of education and textbooks and is available for any employee wishing to study for a technical qualification a diploma or a degreeThe plant staff training and education plan also includes various training schemes at Florim Italy where employees are instructed in the use of new equipment before it is installed at the American plantThroughout 2016 Florim USA will continue to provide a free e-learning course on its website for architects engineers and contractors (AEC) to improve their knowledge of sustainable porcelain stoneware tiles
Employee welfare activities
Florim USA employee picnic - In 2016 the company once again held its annual picnic for employees offering them a wide variety of foods games activities and live shows in an event which provided an unforgettable days enjoyment Within the event participants received prizes in the form of vouchers and gifts
Employee anniversary dinner - 2016 again saw the usual dinner to honour Florim USA employees with 5 10 15 20 or more years of service A special evening event was held in the presence of the Chairman and the other managers to celebrate the loyalty and hard work these employees have contributed during their careers with the firm
2016 Sustainability Report42
Local Community
During 2016 Florim USA continued to provide its support to a number of projects in its local areaSome of the main projects include
Scholarships - As part of its work to support the local community Florim has an established scheme which awards scholarships to deserving students at the Austin Peay State University in memory of Florim Group founder Giovanni Lucchese In December 2016 a delegation of Florim representatives attended a scholarship presentation lunch at the Austin Peay State University hosted by the President of the University
Montgomery County Green Certification Program - Florim USA staff actively participate in the Montgomery County Green Certification Program which aims to help companies learn and implement best practices with regard to safeguarding the environment and environmental resources
Donations - In 2016 the company again made a large number of donationsbull book collection for the Austin Peay State University Employees made a generous donation of used books in good condition for children and young people of the APSU in the hope of further promoting the education of future generationsbull to Community Cares the national organization that promotes the acceptance and social inclusion of individuals with Downs Syndromebull to the Aspire Clarksville Foundation a 501(c)(3) charitable foundation whose mission is to continuously improve the economy and the livability (quality of life) of the community by attracting significant capital investment and expansion by businesses and corporations thereby creating better opportunities and higher paying jobs for residentsbull to the Alzheimerrsquos Association a non-profit voluntary organization dedicated to the care and support of Alzheimers Disease sufferers and research into the condition Its aim is to eliminate the disease through the advancement of research to provide and enhance care and support for all affected and to reduce the risk of dementia through the promotion of brain health
Other activities - Every year Florim USA participates in the United Way Drive initiative to support local non-profit organizations which provide economic assistance and psychological support to persons in difficulty
Florim USA provides regular support to the Salvation Army by collecting canned foods for persons in needIn 2016 the company again organised a canned food collection for Manna Cafeacute in Clarksville TN Manna Cafeacute is a local non-profit organization based in Middle Tennessee with the primary mission of meeting peoples fundamental need for food before encouraging them to permanently change their lives for the better More than 15 of the population in Montgomery County are affected by food insecurity (about 28000 people) The percentage of children affected is about 215 a third of whom are excluded by income from federal programs such as free school mealsFinally donations were made tobull American Lung Association the leading organization working to save lives by improving lung health and preventing lung disease through research and educationbull Cheer for a Cure an organization that gives money directly to afflicting families who have a loved one suffering from cancer and need assistance to alleviate the added financial stressbull Habitat for Humanity Since 1992 Habitat for Humanity in Montgomery County Tennessee has worked with 93 low-income families with more than 210 children to revitalise various parts of Clarksville-Montgomery County by building new homes
2016 Sustainability Report 43
Quality SystemFlorim USA works under a Quality System certified to UNI EN ISO 9001 standards The following are some of the figures in brief
Objective Indicator 2012 2013 2014 2015 2016
Optimisation of control of the production process
Percentage of First Grade Product ()
932 917 940 949 9510
Quality rate () 883 857 893 906 909
Scrap rate () 56 65 48 45 45
KeyPercentage of first grade product ratio between square feet of first grade material and total square feet transferred to stockQuality rate ratio between square feet of first grade material transferred to stock and square feet pressedScrap rate ratio between square feet pressed and square feet of product actually transferred to stock
Other ActivitiesFlorim USA and trade shows
In 2016 Florim USA participated at a number of shows and events including Coverings the AIA Tennessee Convention Hardscape North America Total Solutions Plus Neocon International Pool - Spa and Patio Expo These events targeted at the various categories of industry professionals such as dealers and designers gave Florim USA the opportunity to present its new range of indoor and outdoor products
Design Center
In December 2015 Florim USA opened a design center showroom in Nashville (TN) in a strategic location close to the airport and the city center With a spacious area to host individual CEU presentations and workshops this design center has the potential to be a major resource for local architects In 2016 it was also awarded the ldquoOutstanding Boothrdquo booth prize at the 33rd edition of the Annual Home Decorating and Remodeling Show The location is the ideal place for sharing ideas finding inspiration and putting professionals and architects in touch with each other
Florim Nashville Design Center
2016 Sustainability Report44
GRI International Sustainability Indicators SDGsThe information below illustrates the correspondence between the Florim (Italian companies) 2016 Sustainability Report the GRI-G4 guidelines and the icons of the Sustainable Development Goals (SDGs) definitively adopted by the United NationsA description of the SDGs is available at wwwglobalcompactnetworkorg
GRI indicators
Description Page Reference to SDGs
1 Strategy and Analysis
G4-1 Statement from the most senior decision-maker of the organization 5
2 Organization profile
G4-3 Name of the organization 2
G4-4 Primary brands products andor services 9
G4-5 Location of the organizations headquarters 9
G4-6 Number and names of the countries where the organization operates 9
G4-7 Nature of ownership and legal form 14
G4-8 Markets served 9
G4-9 Scale of the organization 8 8
G4-10 Significant changes regarding size structure or ownership 8
G4-11 Employees covered by National Collective Bargaining Agreement 27
G4-12 Describe the supply chain 16
G4-13Significant changes regarding the organizationrsquos size structure ownership or its supply chain
Reporting process
launched
G4-14 Precautionary principle 22
G4-15 List of external commitments in which the company is involved 22 32 33
G4-16 Associations or interest groups in which the company is involvedwwwflorimit gt
about us gt partnerships
3 Identified material aspects and boundaries
G4-18 Process used to define the report content 6
G4-19 Material aspects 16
G4-20 Boundaries of each material aspect 6
G4-21 Boundaries of each material aspect outside the organizationPartial reporting
(pages 6 16)
G4-22 Explanation of the effect of any restatements of information provided in previous reports 6
G4-23Significant changes from previous reporting periods in the scope boundaries or measurement methods
6
3 Stakeholder engagement
G4-24 List of stakeholders 15
G4-25 Identification of stakeholders 15
G4-26 Stakeholder engagement 6 16
G4-27 Key topics and concerns that have been raised through stakeholder engagement 16
4 Boundary of the Report
G4-28 Reporting period 6
G4-29 Date of publication 2
G4-30 Reporting cycle 6
G4-31 Contacts and addresses for additional information 46
5 GRI Content Index
G4-32 Reporting option chosen 6 7
G4-33 External assurance of ReportThe Report is not
externally assured
2016 Sustainability Report 45
GRI indicators
Description Page Reference to SDGs
6 Governance
G4-34 Governance structure 14
7 Ethics and integrity
G4-56 Values principles standards and norms of behavior 13 16
Economic performance indicators
EC1 Direct economic value generated and distributed 19 25789
EC5 Wages 27 158
EC7 Development and impact of infrastructure investments and services supported 23 24 31 257911
Environmental performance indicators
G4-EN2 Percentage of materials used that are recycled input materials 17 22 23 812
G4-EN3 Energy consumption within the organization 24 781213
G4-EN6 Reduction of energy consumption 17 24 71213
G4-EN7 Reductions in energy requirements of products and servicesPartial reporting
(page 22)71213
G4-EN8 Total water withdrawal by source 17 23 6
G4-EN10 Percentage and total volume of water recycled and reused 17 21 23 612
G4-EN11 Biodiversity 23 615
G4-EN15 Total indirect greenhouse gas emissions by weight 25 3121315
G4-EN16 Total indirect greenhouse gas emissions by weight 25 3121315
G4-EN19 Reduction of greenhouse gas emissions 8 24 1315
G4-EN21 NOx SOx and other significant air emissions 25 31215
G4-EN22 Total water discharge by quality and destination 23 6
G4-EN23 Total weight of waste by type 17 22 3612
G4-EN27 Impact mitigation of environmental impacts of products and services 23 68121315
G4-EN29 Monetary value of significant fines 22 16
G4-EN30 Significant environmental impacts of transporting products and goodsmaterialsPartial reporting
(page 25)111213
Social performance indicators
G4-LA1 Total number and rates of new employee hires and employee turnoverPartial reporting
(pages 17 27)8
G4-LA6 Workplace injury ratesPartial reporting
(page 17)38
G4-LA9 Average hours of training per year per employee 28 48
G4-LA12Composition of governance bodies and breakdown of employees according to gender age group etc
27 58
G4-LA13 Ratio of basic salary and total remuneration of women to men 27 5810
Society
G4-SO1 Operations with local community engagement 12 31 16
G4-SO3 Operations assessed for risks related to corruptionPartial reporting
(page 13)
Product responsibility
G4-PR1 Assessment of health and safety impacts for improvement 23 32
G4-PR3 Type of information about products and services required by the procedures 32 12
G4-PR5 Proceedings relating to customer satisfaction including surveys conducted to measure it 33
G4-PR6 Sale of banned or disputed products 32
G4-PR8 Number of substantiated complaints regarding breaches of privacy 32 16
2016 Sustainability Report46
Your Assessment
You are kindly requested to take a few minutes of your time to give us your assessment and any suggestions to enable us to improve future editions of our Sustainability Report
Click here to send us your feedback
To keep up to date with our business
Spazio CEDIT - interior (Milan)
wwwflorimiten
Florim Ceramiche
Florim4Architects
Florim_ceramiche
Florim Ceramiche spa
Florim Ceramiche
Florim Ceramiche
For any further information please feel free to contact our communications department comunicazioneflorimit
2016 Sustainability Report 47
Premio Lucchese - Florim Gallery (Fiorano Modenese - Modena Italy)
Intrapresaelig Guggenheim Collection - Massimo Bottura in Florim Gallery (Fiorano Modenese - Modena Italy)
Panathlon Christmas Gala - Florim Gallery (Fiorano Modenese - Modena Italy)
2016 Sustainability Report48
White Christmas Party - Florim Gallery (Fiorano Modenese - Modena Italy)
Cersaie - Mario Biondi in Florim Gallery (Fiorano Modenese - Modena Italy)
Dal buio alla luce - Social event at Florim Gallery (Fiorano Modenese - Modena Italy)
2016 Sustainability Report 49
Florim Gallery entrance (Fiorano Modenese - MO)
2016 Sustainability Report52
Florim Ceramiche spaVia Canaletto 24 - 41042 Fiorano Modenese (Modena Italy) - Tel +39 0536 840111 - wwwflorimit
2016 Sustainability Report18
Economic Responsibility
Comments on 2016 Economic Data
The Groups 2016 results were again good from every point of view
Compared to the previous year turnover increased by 87 leading thanks to careful management of production costs to an EBITDA of Euro 1071 million equivalent to 263 of turnover and a profit after tax of Euro 493 million
The companys financial data also significantly improved with a net financial position of Euro 125 million compared to Euro 273 million at the end of 2015 in spite of record technical investments of Euro 535 million and financial investments of Euro 11 million
Once again underlying the results achieved were large investments in latest-generation machinery and technologies painstaking research to develop materials with exceptionally high technical and design content human resources and projects for the increasingly direct promotion of Florims image and quality standard
Investments
The technical investments made in 2016 amount to Euro 535 million while Euro 11 million was spent on reacquiring 100 ownership of Maker srl followed by its amalgamation with Florim spa on 31 December The most important industrial projects included the continuation of the work on the Mordano plant which involved investments of Euro 26 million for the restructuring of the raw material preparation area and the doubling of production capacity for traditional porcelain stonewareThe investments of US$ 18 million at Florim USA were utilised to complete the renewal of the raw material preparation area and construct a new building for the technical organizationFinally about 9 million Euro was invested at Fiorano on various production line modernization projects
A creative hub for design style and new trends Milan once again confirms that it is the ideal setting for Florims investments and the opening of the all-new ldquoSpazio CEDITrdquo confirms the companys determination to strengthen its bonds with design professionals working in high-end interior design The culture of beauty art architecture and design are all integral to the genetic make-up of CEDIT ndash the historic Italian brand relaunched by Florim in 2016 ndash and dominate the display areas and the first six ceramic covering collections styled by famous names on the contemporary creative sceneOn two levels with a total floor area of more than 200 msup2 the space maintains the same stylistic identity as the one at Fiorano Modenese since they are both constructed to an architectural design intended to be replicated in CEDIT customers showrooms worldwide
Spazio CEDIT Watch theinauguration video
2016 Sustainability Report 19
Economic Value Generated and Distributed
The figures for the economic value generated and distributed provide a simple clear explanation of how Florim has created wealth and redistributed it to its stakeholders The table below contains the data from Florims 2016 financial statements approved by the Board of Directors on 30 March and certified by external auditorsThe economic value directly generated is represented by the total earnings for 2016 while the economic value distributed includes the costs incurred for suppliers and employees payments to the state (taxes) and the donations which had positive repercussions for the community to which Florim spa belongs
Heading 2014 2015 2016
Revenues 253125 269855 302521
Direct economic value generated 253125 269855 302521
Operating costs 135735 150951 168809
Employee wages and benefits 56985 58149 62418
Payments to providers of capital 7413 6399 11903
Payments to government 15738 13162 15382
Community investments 221 212 240
Economic value distributed 216092 228873 258752
Economic value retained 37033 40982 43769
KeyRevenues net sales plus revenues from financial investments and sale of assetsOperating Costs payments to suppliers non-strategic investments royalties payment facilitationsEmployee wages and benefits employee wages and benefits per employees (current payments)Payments to providers of capital all payments to the organizations providers of capitalPayments to government gross taxes and dutiesCommunity investments voluntary donations and investments in the communityEconomic value retained calculated as economic value generated less economic value distributed
The data in the table are in thousands of Euro and refer to the consolidated financial statements of the Italian companies only
KBIS (USA) - detail of the stand created with ldquoI Classici di Rexrdquo
2016 Sustainability Report20
Casa dolce casa ndash Argille 20 Collection
2016 Sustainability Report 21
Environmental ResponsibilityEffective environmental policy management energy saving and emissions reduction are amongst Florims strategic sustainability objectives
Our green projects in figures
2 highly-regarded process certifications
ISO 14001 (ENVIRONMENT)and ISO 50001 (ENERGY)
849873 MWh is the amount of electricity the
company succeeded in producing in-house during 2016
2 departments (marketing and communications)
engaged on digitizing advertising tools
8462 tons of CO2 NOT emitted
CO2
100 is the percentage of wastewater recycled
16000 msup2of photovoltaic panels covering
an area of 30000 msup2
75 is the percentage of the electricity consumed which is
produced in-house
4 latest-generation industrial kilns installed in
the last 3 years
4 different types of environmental product
certification
2 cogeneration plants to increase energy saving
and efficiency
1 laboratory for the development of contemporary design projects with a specific focus on the materials green
content
100is the percentage recycling of
industrial greenware waste in the production process
2016 Sustainability Report22
Certifications
System and process certifications
UNI EN ISO 14001TUumlV has awarded Florim the highly-regarded UNI EN ISO 14001 voluntary certification which confirms its compliance with a series of internally certified procedures intended to improve the internal environmental management system The decision to seek this certification springs from the desire to reconcile quality with efficiency and productivity while protecting the environment and community in which the company operates
UNI EN ISO 50001Thanks to a careful energy management policy and aided by the latest investments in the production area also intended to improve energy efficiency Florim was the worlds first ceramics manufacturer to obtain ISO 50001 certification of its Energy Management System
In addition to its environmental certifications Florim has also been awarded prestigious AEO (Authorized Economic Operator) status
Further to a lengthy and demanding audit process by the Customs Authorities in 2016 Florim was awarded AEO certification the first company in the Province of Modena to receive this major form of approval Authorised Economic Operator status guarantees the companys absolute compliance with customs and security requirements in its foreign trade
Environmental Management
Waste 2012 2013 2014 2015 2016
Total waste produced (t) 30228 21170 22300 30862 34423
Non-dangerous recyclable waste (such as paper and cardboard fired scraps plastic glass and wood) ()
989 982 985 991 989
Non-dangerous disposed-of waste (such as the waste picked up by the motor sweepers) ()
02 04 02 02 02
Dangerous recyclable waste (such as spent oil batteries and monitors) ()
00 01 01 01 00
Dangerous disposed-of waste (such as spent lime) () 01 13 12 07 09
Third-party waste recycled within the production process (t) () 4028 4190 1721 2570 5627
Besides recycling greenware waste from its own production cycle (not included in the table because the amount cannot be calculated) Florim also recycles third party waste
Florims operations have always been oriented towards optimization of impact on the local community and environment Thanks to the work of its research laboratories the support of all staff and the recent investment plans tangible results have been achieved The data provided below reveal that in spite of an increase in production of 8 compared to the previous year consumption remains low The companys commitment to environmental protection is all-inclusive and also comprises a focus on the district within which it operates One example is the total removal of all asbestos cement from the Fiorano Modenese plant and the creation of the new recycling station opened in 2015 and donated to the Local Authority as a public serviceAs in previous years during 2016 Florim was not fined for any breaches of environmental regulations or laws
Florim recycles and optimises within the production process all greenware scraps dust residues from filters and sludge from the process and rectification wastewater treatment system The waste produced is detailed in the table the significant differences between years are due mainly to the major demolition and subsequent reconstruction works undertaken at the Italian plants
Waste Management
2016 Sustainability Report 23
Water Resources
No environmental impact of wastewater discharges is specified since all the water from the production cycle is completely reused (100) All other effluents comply with legal requirements
The figure states the total cubic meters of water used per ton of finished product The water used in the Fiorano production process is drawn from private company-owned wells with water from the public main only used for non-industrial purposes The Mordano plant is supplied by an industrial water main Water use is measured by means of meter readings Four highly innovative dry rectifying plants have gone into production at Mordano since 2015 enabling the company to eliminate the physicalchemical treatment of the water used in the rectification process
WATER USE
2012
08
2013
08
2014
08
2015
07Total water consumption (msup3) finished product (t)
07
2016
All packaging used for Florim materials is made from recycled paper and parts of the coverings used to protect pallets of finished products consist of recycled plastic Whats more all the packaging used (boxes cardboard shrink wraps pallets etc) can be completely recycled by the end user The latest investments made include new eco-friendly packaging machines increasing the number of these machines installed to 15 These plants completely eliminate waste due to leftover inventory saving significant amounts of cardboard
Packaging and Coverings
As the materiality assessment states Florim has no significant impacts on the biodiversity of its local area since the company is located inside the Fiorano Modenese ceramics manufacturing district at least 5 Km from the nearest nature reserve at Salse di Nirano Florim takes special care over the choice of the raw materials used for its tile body mixes of which it is required to provide documentation guaranteeing compliance with the European Directives protecting wild birds (EU Dir 79409EEC) and habitats (EU Dir 9243EEC) and the United Nations Convention on the protection of biodiversity It has also introduced a software program - used at the 3 production plants (Italy and the USA) - for the management of data on the origin of raw materials such as quarry location distance from the factory recycled content declaration technical safety and radioactive content data sheets and the expiry of the quarrying permit issued by the government
Raw Materials and Biodiversity
2016 Sustainability Report24
Energy Management
There is no disputing that large amounts of energy are required to power the production processes of ceramic tile plants with consequent direct and indirect impacts on the local area and the environmentThe main indicator used to measure plants energy performance is the mean specific total energy consumption (TEJ) measured in GJt of product transferred to stock As the table below shows this figure is obtained by adding together heat consumption (NGJ) and electricity used (EEJ)
Parameter ndash Definition Unit of measurement
2012 2013 2014 2015 2016
NGJ Mean specific natural gas consumption in relation to the unit of weight of finished product transferred to stock
GJt 557 571 576 578 598
EEJ Mean specific electricity consumption in relation to the unit of weight of product transferred to stock
GJt 111 108 111 108 107
TEJ Mean total specific energy consumption in relation to the unit of weight of product transferred to stock
GJt 668 679 686 685 705
Self-generated electricity as a proportion of consumption
67 68 62 65 75
With two cogeneration plants (for the combined in-house production of heat and electricity) and 16000 msup2 of photovoltaic panels the company certainly sets a new benchmark for the entire ceramic tile industry 2016 saw the replacement of the Fiorano turbine set (the main component of the cogeneration plant) while the one in Mordano was kept in operation 247 factors which led to a 10 increase in in-house electricity production in relation to consumption To provide a clearer idea of the scale of the achievement the amount of electricity the company generated in-house in 2016 (849873 MWh) would cover the average annual consumption of about 37000 households (With consumption per household of 229 MWh - data from the latest ISTAT survey in 2012ndash calculated on the Italian average)
Photovoltaic Plant
kWp kWh produced kg of CO2 not emitted
270021 15937250 8462680
Good Practice
The head office organizations are also optimizing paper and energy consumption In addition to issuing and distributing the energy saving handbook for its offices the company is also trying to maximize savings on the raw material used and specifically the use of paper Internally the company only purchases reams of paper which carry environmental certification and the paper used in offices is collected separately for proper disposal Externally the company distributes a system of merchandising products made mainly from recycled paper and encourages the gradual digitization of its marketing tools as well as publishing all its catalogues in digital format on its Internet sites Florim offers its distributor companies an innovative digital touch screen tool with the pdf versions of the catalogues and other tools for the final consumerIn 2016 Florim decided to adopt a new payslip distribution procedure introducing an online processing system As well as providing employees with new functions and greater operating flexibility thanks to this system the company no longer prints out the monthly payslips saving paper ink and energy The scheme initially involving all office workers has the ambitious target of also including the staff of the Fiorano and Mordano plants
The 16000 square meter photovoltaic plant received recognition from GSE (Energy Management Services) as one of the most innovative installations of its type and from its commissioning (October 2011) up to December 2016 it produced the following results
2016 Sustainability Report 25
Atmospheric Emissions
The industrial facility emits greenhouse gases basically CO2 from the following main sourcesbull combustion from the burning of fossil fuels (such as natural gas)bull processes from the minerals in the raw materials any organic matter in the clays used and any organic additives in tile body mixes
In order to comply with Directive 200387EC (ETS - Emission Trading Scheme) Florim has been reporting and certifying its CO2 emissions since 2013
CO2 emissions 2013 2014 2015 2016
CO2 emissions (t) 102728 103462 111862 132960
CO2 emissions (t) Finished product (t) 033 033 033 035
Emissions from the production cycle 2013 2014 2015 2016
Particulate material (gmsup2 finished product) 223 130 098 118
Lead (gmsup2 finished product) 000 000 000 000
Fluorine (gmsup2 finished product) 014 018 013 012
The increase in CO2 is due mainly to the large increase in the square meters produced (+ 8) and the 247 use of the cogeneration plant However it should be noted that the cogeneration plant provided a 10 increase in in-house electricity generation with lower CO2 emissions than electricity purchased from the grid produced mainly using fossil fuels (source ISPRA Fattori di emissione atmosferica di CO2 e sviluppo delle fonti rinnovabili nel settore elettrico Rapporti [Atmospheric CO2 Emission Factors and Development of Renewables in the Electricity Sector Reports] 2122015)The ratio between CO2 emissions and tons of finished product produced increased because in 2016 the sale of spray-dried material to other companies rose compared to the previous year (emissions from this phase are included in the emissions count but there is no corresponding output of finished product)
In a change from previous years the new GRI-G4 guidelines also require reporting of nitrogen oxide and sulphur oxide emissions Nitrogen oxide (NOx) emissions are within the limits permitted under the integrated environmental authorisation Sulphur oxide (SOx) emissions are not reported here since this figure is not required by the IEA
Transport
The materiality study reveals that transport is a significant factor for both stakeholders and Florim itself The company is not able to measure the impact of transportation of finished product on the local area since all shipments are ex-works However Florim which has been introducing electric vehicles to replace its oldest most obsolete unleaded petrol forklifts for years now has further optimized the handling of materials thanks to the new highly-automated logistics hub created at the via Canaletto location In 2016 about 53 of the vehicles used on the companys premises were electric with no direct greenhouse gas emissions
2016 Sustainability Report26
CEDIT ndash Creative Composition
2016 Sustainability Report 27
Workforce Composition
In 2016 the workforce included 27 people with disabilities 6 women and 21 menBearing in mind the job descriptions arising from the specific industrial sector the breakdown between men and women is in line with the industry average Male office workers and executives earn an average of 10 more than women for jobs of equal responsibility Among blue-collar workers the difference is 7 The company had a total of 29 foreign employees 24 at Fiorano and 5 at Mordano
Manager Executive Office worker
2013 2014 2015 2016 2013 2014 2015 2016 2013 2014 2015 2016
Women 2 3 3 3 3 1 1 1 137 142 133 149
Men 18 21 20 18 21 24 25 28 127 132 128 132
Total 20 24 23 21 24 25 26 29 264 274 261 281
Office ancillary Blue-collar worker Total
2013 2014 2015 2016 2013 2014 2015 2016 2013 2014 2015 2016
Women 18 16 25 19 226 219 212 196 385 381 375 368
Men 64 68 79 64 376 358 356 377 607 603 607 619
Total 82 84 104 83 602 577 568 573 992 984 982 987
Social Responsibility
Employees amp Corporate welfare
Its employees are the heart and soul of Florim they provide its character and its DNA Since 2009 when the current major economic crisis began Florim has undertaken a number of income support programs for its workforce Below we summarise some of the ongoing programmes and others run in 2016bull Ending of the Income Support Program for the Mordano plantbull Agreement with Sassuolo Hospital under which Florim employees and their family members enjoy discounts and shorter waiting times for specialist examinations and outpatient diagnostic tests performed on a private basisbull Special agreements with local health facilitiesbull Tax advice at special rates bull Special terms for banking services with financial consultants on-sitebull Discounts on the purchase of Florim products for employees homesbull Free entry to the Peggy Guggenheim Collection in Venice for employees and concessions for family membersbull Free provision of water and mineral salts in the plants during the summerbull Distribution of fuel vouchers to employees for the Christmas holidays
Summer Play Schemes and Cregraveches
In 2016 the summer play schemes for the children of employees at Fiorano and Mordano were continued for the fifth year in succession Seven different centers across the area between Modena and Bologna hosted 85 children (twice the number of the previous year) the company paid the fee for two weeks attendanceWhats more since 2013 the company has negotiated special terms with local cregraveches which now offer a number of places for employeesrsquo children at a reduced fee
2016 Sustainability Report28
Human Resources Management Policies
In July 2015 on renewal of the in-house supplement to the national employment contract the Management introduced a new phase in its relations with the Trade Unions with the aim of continuing and improving the good relationships enjoyed for decadesThe new company contract applied for all employees at the Fiorano headquarters includes more facilitations for part-time working the willingness to allow flexitime where feasible and the commitment to invest in staff training in order to generate full benefits from intellectual capital The company and the trades unions agreed on a plan to improve efficiency fundamental for maintaining the current level of competitiveness by establishing improvement in Production Efficiency and EBITDA as criteria for the payment of the new Performance Bonus The individual Attendance Score is considered together with these parameters The 2016 Performance Bonus in its first year of application was 20 higher than that paid in 2015 In addition in response to employees requests the Company increased the number of approved canteens extending the choice available and also introduced weekly laundering of work clothing for all production workersWith regard to applications for severance pay advances the Company confirms its commitment to continuing the policy implemented so far
Training
Florim believes that in-house training plays a key role in the companyrsquos development and provides a tool for stimulating and fulfilling the potential of its human resourcesMore than 10600 training hours were provided in 2016 to 847 people with an average of more than 11 hours of training per employee New projects included a 6-month on-line English language course which attracted a large number of participants and two highly structured training courses for the sales division and the communication department A retraining program for workers at the Mordano plant was also completed it comprised 4 technical courses attended by 31 people for an average of 13 hours per person Another new entry for 2016 was an innovative procedure for acquiring information about training needs using an on-line questionnaire available to all employees as well as line managers specific recommendations The Master in Florim project is discussed in depth in the specific section
Health and Safety
Florim was the first Italian ceramics manufacturer to receive BS OHSAS 18001 (Occupational Health amp Safety Assessment Series) certification from TUumlV this international standard certifies the implementation of an internal management system oriented towards occupational health and safetyThis major award confirms the companys constant commitment to the well-being of its employees Every year in addition to engineering inspections and machinery maintenance a number of hours of safety training are organised to raise awareness among workers and supervisors Specifically in 2016 2849 hours were dedicated to safety training and a significant reduction in injury rates was recordedMoreover BLSD refresher courses are continuously held for the team of Florim employees trained in first-aid operations and the use of the defibrillators available on site
2012 2013 2014 2015 2016
Number of workplace injuries 63 62 74 56 43
2016 Sustainability Report 29
The Master in Florim organized for the fourth time in 2016 is a vocational training project which aims to bridge the gap between education (high school or university) and the world of work The program which is one of the companys Social Responsibility projects sets out to help young people to get to know the company through a well structured work experience plan It offers a distinctively northern European approach with a method which alternates classroom teaching with internships in the various areas of the company Participants new university or high school graduates specialising in various subjects all below 30 years of age are therefore able to gain hands-on experience of all Florim departments from RampD to the production process and product distribution for an all-inclusive vision The MASTER courses ambitious aim is to match the individual participants talents with the companys real needs At the end of each edition the company hires all or some of the selected candidates enabling it to acquire new skills new experiences and new energy
Master 40 in figures
20 young people taking part6 months of training13 external lecturers264 hours of classroom teaching392 hours of practical training4 company visits (Ferrari Tetrapak Cremonini and Ducati)50 days of work experience on rotation involving 15 departments1 month of project work
The projects prestige is enhanced by its economic context since Florim pays the young participants for the entire period and its aim is to deal with the thorny problem of youth unemployment The Master has won approval from various faculties at major Italian universities The project was also a winner in the Emilia-Romagna Regions 2016 awards for Corporate Social Responsibility projects run in the local community A prize in the ldquoBusiness and Educationrdquo category was assigned to the Master project which aims to give young people the skills required for sustainable development
Master in Florim
2016 Sustainability Report
Watch the videoof the 4th edition
2016 Sustainability Report30
Local Community amp Culture
This chapter describes a number of programs Florim runs for the local community in the area where it originated and where it has been working for more than 50 years
Politecnico di Milano
Since the 20052006 academic year Florim has been a partner sponsor of a large number of Postgraduate Courses run by POLIDesign the Politecnico di Milano consortium which organizes its Master Degree coursesAlso in association with POLIDesign since 2012 Florims Milan showroom has hosted several design events for architects and designers of every nationality
Aziende modenesi per la RSI
ldquoAziende Modenesi per la RSIrdquo an independent open inclusive association of companies in the Modena area which believe in the principles and values of Corporate Social Responsibility was established by public deed on 30 September 2014 with Florim as a founding member Florim hosts the associations member companies every year to discuss the various topics proposed
Premio Lucchese
The Premio Lucchese presented for the twenty-ninth time in 2016 was established in memory of Giovanni Lucchese and consists of scholarships awarded to students at the ldquoAlessandro Voltardquo Technical High School in Sassuolo who graduate with full marks The award ceremony held every year at the Florim Gallery in association with Societagrave Ceramica Italiana of Bologna includes a talk given by a leading personality on a topic of current interest to an audience of eager young listeners
Intrapresaelig Collezione Guggenheim
As befits a company that combines the values of its local community and historic and artistic heritage with a flair for research and innovation Florim recently launched a partnership with the Peggy Guggenheim Collection Since its foundation Florim has always had a unique ability to incorporate the true cultural significance of its industry in its business model and by this project once again confirms its commitment to promoting art by supporting a collection of extraordinary beauty
Fondazione Ing Giovanni Lucchese
More than thirty years after the untimely death of Giovanni Lucchese ndash founder of what was then Floor Gres currently Florim ndash in 2013 his family established a Foundation in his name which since then has funded organizations and associations that support families in need in the ceramics district The Foundation also supports a variety of projects such as the summer play scheme for employees children the Premio Lucchese and the Florim HealthampTraining Center described in more detail below
The main projects undertaken in 2016 include the funding of the purchase of 10 defibrillators for the Municipality of Fiorano and the contributions made to the purchase of paediatric ambulances for the local area and to support the Parish charitable organizations and social services in the district
Watch the Premio Lucchese video
The project run jointly by Florim and Sassuolo Hospital adopts a completely new model combining industrial culture and healthcare in an original way to benefit the local people and community thanks to the coming-together of a ceramic coverings manufacturer and the public-private joint venture Ospedale di Sassuolo Spa Florim HealthampTraining is the synthesis of this idea an experimental center which promotes local training for healthcare and other staff health education and information advanced medical simulation and research
The Center
On the main Florim site and opened on 16 April 2014 the Center is 550 square meters in area and contains a modular lecture theatre able to seat over 100 people and a number of classrooms for seminars and lessons At its heart is a state-of-the-art control room crammed with technology that operates dummies capable of reproducing human functions of all kinds Advanced simulation is a major aid to maintaining the skills of emergency healthcare workers with a particular focus on pediatric and neonatal resuscitation
Health meetings
Designed as a space for community use the Center also aims to become a place where all sections of the population - workers schoolchildren parents teachers volunteers and even just members of the public - can learn about preventive health care and acquire first aid skills After the distribution to Florim employees of a questionnaire surveying their training needs and preferences a Center Scientific Committee of Sassuolo Hospital medical personnel was appointed and drew up a plan of bi-monthly ldquoHealth meetingsrdquo All meetings are led by doctors with expertise in the various topics who answer the many questions from the audience at the end of their talks Between its opening and the end of December 2016 the Center hosted 13 meetings on a variety of topics attended by about 1000 people including employees their family members and the community at large
Healthcare discounts for Florim employees
The project also includes a major welfare program for all Florim employees and their family members entitling them to discounts and shorter waiting times for specialist examinations and outpatient diagnostic tests performed on a private basis
American Heart Association
The world-famous American Heart Association (AHA) is the oldest and most respected American voluntary organization dedicated to the fight against cardiovascular diseases and strokes In 2015 the AHA via the Simaid International Training Center named the Florim HealthampTraining Center as an Authorized Training Site for basic and advanced cardiopulmonary resuscitation
Florim HealthampTraining Center
2016 Sustainability Report
Watch the Health amp Training Center video
2016 Sustainability Report32
Product Responsibility
Here we summarize the concept of Made in Florim denoting a product that encapsulates the companys core values passion innovation a constant commitment to improvement and corporate social responsibility
Florim product certifications
CE Marking guarantees the user that the materials purchased meet the requirements of the relevant regulations and that the characteristics concerned are virtually unchanged for all production lots It is a declaration of conformity which protects the consumerrsquos safety The presence of the CE Marking on packaging guarantees that Florim products comply with the relevant regulatory requirements
Ecolabel (EC Regulation 662010) is a certification granted to products which comply with ecological and performance criteria set at a European level concerning raw material extraction supplier selection manufacturing processes packaging distribution use and disposal The certified Florim collections are Architech Ecotech Reverse Walks 10 by Floor Gres and Pietra del Nord under the Rex brand
Several ceramic tile collections bearing the Florim brands have earned certification from Bureau Veritas for their pre-consumer recycled material content These articles are therefore fully eco-compatible and can meet the environmental sustainability requirements imposed by many international certifications
Florim is a member of the US Green Building Council (USGBC) the most important association which promotes the reduction of buildings negative impact on the environment To allow the effective monitoring a projects level of sustainability the USGBC has developed a certification procedure for the development of sustainable buildings which assess and certifies the sustainability of a building in its entirety Florim materials are able to help to gain LEED points in a number of areas (data available on the Florim brand websites)
Florim has achieved the prestigious Greenguard certification for all its products Issued by the American body UL Environment this certification aims to reduce indoor pollution caused by interior design systems and materials UL Environment thus aims to protect health by improving air quality and reducing peoples exposure to chemicals and other pollutants Florim has also achieved Greenguard Gold Certification which imposes even stricter limits to confirm that a given product is suitable for use even in locations such as schools and health care facilities
The EPD or Environmental Product Declaration is a document which defines the environmental impacts arising from production In 2016 Florim participated in the study - certified by the German organization IBU - performed on the ceramics industry average data which aims to raise international awareness of the excellence of the environmental standards achieved
Beyond the standardsMade in Florim products are a guarantee of safety highly innovative content and eco-friendliness The people who produce them work in a safe place and in ethically sustainable conditions Due to their nature all Florim products are guaranteed free from pollutant emissions do not accumulate electrostatic charges are frostproof and completely inert and are undamaged by contact with flames The Groups Internet sites and collection catalogues contain the technical data sheets which detail the product information (slip-resistance breaking strain abrasion resistance etc) for every collection as well as its recycled material content with the relative certificates
During the period under consideration no banned products were placed on the market and the company was not found guilty of any breaches of the law with regard to data protection or its marketing and communication activities
EU Ecolabel nr IT2104
2016 Sustainability Report 33
Quality SystemThe current ISO 9001 standards define quality as the ability to satisfy explicit or implicit needs via a product or a service A Quality System implies constant improvement of company processes in order to realise products that always satisfy the customerrsquos needs Further to the 2016 audit Florim obtained the renewal of its UNI EN ISO 90012015 certification for the design manufacture and sale of all categories of ceramic tile
Objective Indicator 2012 2013 2014 2015 2016
Continual improvement of control of the production process
Percentage of First Grade Product ()
924 943 942 952 956
Quality rate () 883 905 903 905 909
Scrap rate () 44 41 42 42 49
Productivity (sq mhour) 186 188 186 190 200
Improvements in sales performance and customer satisfaction
Innovation rate () 330 296 367 455 364
Coverage () 795 714 814 813 816
Total portfolio shippable within one month ()
911 837 888 893 897
Optimization of range and stocks
Obsolete stock () 172 126 165 120 69
Stock turnover rate () 13 15 16 15 16
Gradual elimination of disputes complaints and claims concerning service
Square meters affected by complaints ()
17 12 08 12 09
Complaints by number of order items ()
10 11 11 10 10
Gradual improvement in staff skill levels
Employee turnover () 15 23 04 04 12
KeyPercentage of first grade product percentage ratio between the square meters of first grade products and the total square meters transferred to stockQuality rate percentage ratio between the square meters of first grade product transferred to stock and the square meters leaving the pressesScrap rate percentage difference between square meters of material leaving the presses and square meters of product actually transferred to stockProductivity ratio between the square meters transferred to stock and the total hours worked in the plantInnovation rate ratio between square meters sold belonging to series designed in the last three years and total square meters sold Florim uses this indicator to assess the effectiveness of its design process in terms of salesCoverage percentage ratio between square meters available for immediate shipment and the square meters on orderTotal portfolio of orders shippable within one month percentage ratio between the square meters which can be shipped in 30 days and the square meters on orderObsolete stock percentage ratio between the square meters of substandard discontinued produce and the total square meters in stock Stock turnover rate ratio between the square meters sold and the square meters in stockSquare meters affected by complaints percentage ratio between the square meters affected by complaints and the square meters soldComplaints by number of order items percentage ratio between the number of complaints and the number of items orderedEmployee turnover percentage ratio between the number of employees leaving the company and being replaced and the workforce at the start of the year
2016 Sustainability Report34
Casamood - Neutra 60 Collection
2016 Sustainability Report 35
OUR COMMITMENTS
The promises we keptIn our last Sustainability Report we committed to achieving a large number of objectives the following are the outcomes we attained
Relaunch of the ldquoCEDIT ndash Ceramiche drsquoItaliardquo brand OBJECTIVE ACHIEVED
Launch of the FLORIM stone brand OBJECTIVE ACHIEVED
Installation of a new latest-generation kiln at the Mordano plant OBJECTIVE ACHIEVED
Transfer of the Moscow showroom to new premises SCHEDULED FOR 2017
Creation of a new gatehouse at the Mordano plantOBJECTIVE POSTPONED TO GIVE PRIORITY TO THE CONSTRUCTION OF THE NEW FACTORY
Introduction of ERP system at Florim USA OBJECTIVE ACHIEVED
Installation of a new spray dryer and raw material handling system at Florim USA
OBJECTIVE ACHIEVED
Economic Responsibility
Renewal of certification of the Florim environmental and energy management system
OBJECTIVE ACHIEVED
Award of new certifications for collections manufactured with a high recycled material content
OBJECTIVE ACHIEVED
Continuation of work to reduce environmental impacts at Mordano especially with the reduction of energy costs
OBJECTIVE ACHIEVED
Continuation of the work to remove asbestos cement roofing materials at the Mordano plant
OBJECTIVE ACHIEVED
Expansion of the system which conveys rainwater to the treatment plant OBJECTIVE ACHIEVED
Reduction of the noise emissions of the air filtering systems OBJECTIVE ACHIEVED
Increase of recycling targets through constant awareness-raising amongst all staff and optimisation of recycling facilities
OBJECTIVE ACHIEVED
Continuation of replacement of the diesel forklift trucks for use on outdoor yards with electric vehicles
OBJECTIVE ACHIEVED
Environmental Responsibility
Running of fourth edition of Master Florim course with new procedures OBJECTIVE ACHIEVED
Creation of an internal refreshment area for the Fiorano office staff OBJECTIVE ACHIEVED
Improvement of corporate welfare through the activation of new free services and discounts tailored to employees needs
OBJECTIVE ACHIEVED
Continuation of the health meetings for the local community in association with Ospedale di Sassuolo Spa
OBJECTIVE ACHIEVED
Organization of new community events at Florim Gallery OBJECTIVE ACHIEVED
Organization of Florim Family Day 2016 A PARTY WAS ORGANISED FOR EMPLOYEES
Social Responsibility
2016 Sustainability Report36
The targets we set for ourselvesWe aim to achieve the following objectives in 2017
Economic Responsibility
Construction of a new factory at Mordano to produce large slabs
Launch of the project to unite the Florim spa sales organizations
Total restyling of the corporate and brand Internet sites
Launch of the HUB project - Intranet CRM Marketing Automation
New plants at Florim USA a press two sorting lines a polishing and rectifying line
New working spaces and cloakrooms for technical staff at the American plant
Environmental Responsibility
Purchase of a new cogenerator for the Mordano plant
Introduction of a new rainwater collection system at Fiorano
Land reclamation project involving covering of the Rio Spezzano stream at Fiorano
Implementation of new software for continual monitoring of energy impacts at Fiorano
Modernisation of the compressor room to improve energy impacts at Mordano
Increase of recycling targets through constant awareness-raising amongst all staff and optimisation of recycling facilities
Continuation of replacement of the diesel forklift trucks for use on outdoor yards with electric vehicles
Social Responsibility
Improvement of corporate welfare through the activation of new free services and discounts tailored to employees needs
Continuation of the health meetings for the local community in association with Ospedale di Sassuolo Spa
Organization of new community events at Florim Gallery
Organization of a new event for Florim spa employees
New offices for hospitality and events staff at Fiorano
2016 Sustainability Report 37
FLORIM USA
Profile and Economic ResponsibilityFlorim USA with registered office at Clarksville - Tennessee - and its subsidiary Florim Solution Inc have been part of the Florim Group since 2000 The Florim USA manufacturing plant one of the largest most technologically advanced in the United States produces porcelain stoneware tiles for the residential market and undertakes commercial projects in North America During the last few years Florim USA has implemented a growth and process optimization strategy which has generated significant technological progress with more innovations planned for the future The strategy adopted will put Florim USA at the worldwide state of the art in porcelain stoneware tile manufacture
In 2016 of the 18 million USD invested 147 was allocated for installation of a latest-generation raw material handling system and a large spray-dryer with an innovative sorting system Improvements were made to other parts of the process to increase their efficiency leading to a further reduction in emissions and scrap rates Additional investments are planned during 2017 to continue this dual trend of rising production with mitigation of environmental impact
The new Florim Flagship Store in New York (152 Madison Avenue 32nd Street)
2016 Sustainability Report38
Environmental ResponsibilityFlorim USA implements the same environmental policy as Florim and is committed to achieving the following objectives
bull reduction of the energy used in the production processbull improvement of the waste management process with a focus on recovery and reusebull introduction of new more eco-efficient technologiesbull adoption of integrated management systems
Florim USA has been pursuing a strategy of careful management of its operations and environmental impact for a number of years Here we summarise the main actions taken and the results achieved in 2016
bull installation of a latest-generation spray-dryer in 2016bull installation of an innovative raw material handling system in 2016bull 100 recycling of wastewater within the processbull optimisation of the management of water bottles with elimination of about 34200 of them per annumbull reuse of almost all production scrap (+99)bull 157000 kg of cardboard recycled in 2016bull award of two different types of product certificationbull 9300 kg of plastic recycledbull recycling of 17 complete trucks of pallets
Environmental Projects and Awards
Florim USA has received Clarksville Montgomery County Green Certification (CMCGC) CMCGC is a program designed to help companies learn and implement best practices in the area of environmental stewardship to sustain the local communityrsquos resources through a series of free workshops taught by local environmental specialists Since 2014 Florim has allocated some of its Environment Managers time for the running of these workshopsFlorim USA earned this green company certification thanks to a large number of projects first and foremost the one which eliminated the use of disposable water bottles replaced with individual reusable bottles provided by the company and a series of fill-up stations About 34200 bottles are removed from the waste cycle every year
During the latest phase of its plant optimization Florim USA has implemented a thorough construction material reuse policy In the various stages of demolition of the old plants including the old storage silos the concrete debris was recovered and reused in other construction worksThis project alone generated 11500 tons of recycled aggregate as well as several hundred tonnes of metal sold to a recycling firm
Environmental management system and eco-compatible products
Florim USArsquos products help builders and designers to meet the requirements for sustainable buildings as defined by the United States Green Building Council (USGBC) through the LEED Green Building Rating System This protocol evaluates and certifies the environmental sustainability of a building as a unit from its design to its day to day management To gain LEED credits many of the Florim USA product lines contain a significant percentage of recycled material (40 or more)This feature contributes to an increase in the LEED score in the projects where these products are installed In 2014 Florim USA together with a large number of other US tile manufacturers and the Tile Council of North America drew up a type III environmental product declaration (EPD) certified under the ISO 14025 standard This ceramic tile life-cycle analysis enables Florim USA products to gain LEED points under the new LEED v4 protocol
2016 Sustainability Report 39
Water use (gallonsper million square feetof finished tiles)
208137 216246 204962 195280 194268
Energy use
2012 2013 2014 2015 2016
Cubic feet of natural gas per million square feet of finished tiles 9343383 9149721 8331170 8390503 8380000
kWh per million square feet of finished tiles 510972 491171 450594 465976 490300
Emissions
Particulate material lt 21024 tonnes per annum
SO2 (sulphur dioxide) lt 1674 tonnes per annum
VOC (volatile organic compounds) lt 1245 tonnes per annum
NOx (oxides of nitrogen) lt 1501 tonnes per annum
Environmental performance indicators ndash summary
The following are the main environmental indicators related to the impact and performance of Florim USA during 2016
Pre-consumer recycled material
Its internal material recycling processes enable the company to minimise its environmental impact since most of the material which would otherwise be sent to landfills or other waste treatment centers is reusedbull Wastewater is entirely recycled within the production process without any discharge into the municipal drainsbull The material in the collection bags from the tile body and glaze preparation areas the press and glaze application is entirely recycled within the processbull All scrap fired tiles are entirely recycled within the processbull 157000 kg of cardboard was sold to an external recycled material dealerbull 17 trucks of unusable wooden pallets were sold to a pallet regeneration companybull About 9300 kg of waste shrink-wrap plastic film was recovered and recycled
Post-consumer recycled material
About 82000 kg of glass was removed from the flow of waste destined for the local landfill and recycled within the process Florim USA has signed an agreement with the local landfill for consignment of all the glass it handles which is collected and set aside for recycling
Water use disposal and reuse
The water used during the production process is recycled continually therefore no water is discharged into the municipal drains
The 2016 emissions figures are in line with those for previous years well below the standards laid down
Water use 2012 2013 2014 2015 2016
Water use (gallons per million square feet of finished tiles) 216246 204962 195280 194268 203928
2016 Sustainability Report40
Social Responsibility
Employees
The Florim USA workforce comprises 348 staff employed at the production site the Clarksville and Nashville outlet stores and the Florim Solution offices Of the 348 employees 273 are blue-collar workers and 75 office staff 5 employees are Italians on secondment to the United States Florim USA offers a number of benefits to full time employeesbull health and dental care insurancebull Vision insurancebull life insurance for employees and optionally for family membersbull temporary and permanent disability supportbull employee pension plan
2012 2013 2014 2015 2016
Workplace injuries 50 41 22 29 27
The Employee Assistance Program (EAP) also offers support to employees and their families in the event of psychological difficulty or other problems that can have a negative impact on their quality of life Florim USA supports all the costs of the program
Equal opportunities
Florim USA provides equal opportunities in all employment practices to all qualified employees and applicants regardless of race colour religion gender national origin age disability or membership of the armed forces or any other category protected by federal state or local laws
Health and safety
FLORIM USA is committed to ensuring a safe healthy workplace for all employees It therefore replaces old and obsolete equipment with new technologically more modern machinery and updates safety plans as new information gradually becomes availableAs well as an internal supervisor Florim USA has also appointed a health and safety committee which constantly monitors the plans effectiveness and makes any changes requiredThere are currently 20 plant employees who hold CPRfirst aid qualifications They occupy a variety of positions and work different shifts within the plant and have volunteered to attend training courses sponsored by the company for the award of these qualifications
Training
In 2016 every Florim USA employee attended an average of about 25 hours of training The training provided covered the operating procedures for the new equipment the main safety plans and the procedures for use of existing equipment for new employeesAll new staff undergo specific training for their department focusing on the safety-related aspects of the department concerned as well as more generalized safety training
Some of these themes includebull safe correct use of forklift trucksbull training on work in confined spacesbull shutdownwarning procedures and safe electrical practicesbull safe lifting procedures
2016 Sustainability Report 41
Florim USA ndash (Clarksville Tennessee)
For employees wishing to continue their education Florim USA offers assistance through the Educational Assistance Program It provides aid with the cost of education and textbooks and is available for any employee wishing to study for a technical qualification a diploma or a degreeThe plant staff training and education plan also includes various training schemes at Florim Italy where employees are instructed in the use of new equipment before it is installed at the American plantThroughout 2016 Florim USA will continue to provide a free e-learning course on its website for architects engineers and contractors (AEC) to improve their knowledge of sustainable porcelain stoneware tiles
Employee welfare activities
Florim USA employee picnic - In 2016 the company once again held its annual picnic for employees offering them a wide variety of foods games activities and live shows in an event which provided an unforgettable days enjoyment Within the event participants received prizes in the form of vouchers and gifts
Employee anniversary dinner - 2016 again saw the usual dinner to honour Florim USA employees with 5 10 15 20 or more years of service A special evening event was held in the presence of the Chairman and the other managers to celebrate the loyalty and hard work these employees have contributed during their careers with the firm
2016 Sustainability Report42
Local Community
During 2016 Florim USA continued to provide its support to a number of projects in its local areaSome of the main projects include
Scholarships - As part of its work to support the local community Florim has an established scheme which awards scholarships to deserving students at the Austin Peay State University in memory of Florim Group founder Giovanni Lucchese In December 2016 a delegation of Florim representatives attended a scholarship presentation lunch at the Austin Peay State University hosted by the President of the University
Montgomery County Green Certification Program - Florim USA staff actively participate in the Montgomery County Green Certification Program which aims to help companies learn and implement best practices with regard to safeguarding the environment and environmental resources
Donations - In 2016 the company again made a large number of donationsbull book collection for the Austin Peay State University Employees made a generous donation of used books in good condition for children and young people of the APSU in the hope of further promoting the education of future generationsbull to Community Cares the national organization that promotes the acceptance and social inclusion of individuals with Downs Syndromebull to the Aspire Clarksville Foundation a 501(c)(3) charitable foundation whose mission is to continuously improve the economy and the livability (quality of life) of the community by attracting significant capital investment and expansion by businesses and corporations thereby creating better opportunities and higher paying jobs for residentsbull to the Alzheimerrsquos Association a non-profit voluntary organization dedicated to the care and support of Alzheimers Disease sufferers and research into the condition Its aim is to eliminate the disease through the advancement of research to provide and enhance care and support for all affected and to reduce the risk of dementia through the promotion of brain health
Other activities - Every year Florim USA participates in the United Way Drive initiative to support local non-profit organizations which provide economic assistance and psychological support to persons in difficulty
Florim USA provides regular support to the Salvation Army by collecting canned foods for persons in needIn 2016 the company again organised a canned food collection for Manna Cafeacute in Clarksville TN Manna Cafeacute is a local non-profit organization based in Middle Tennessee with the primary mission of meeting peoples fundamental need for food before encouraging them to permanently change their lives for the better More than 15 of the population in Montgomery County are affected by food insecurity (about 28000 people) The percentage of children affected is about 215 a third of whom are excluded by income from federal programs such as free school mealsFinally donations were made tobull American Lung Association the leading organization working to save lives by improving lung health and preventing lung disease through research and educationbull Cheer for a Cure an organization that gives money directly to afflicting families who have a loved one suffering from cancer and need assistance to alleviate the added financial stressbull Habitat for Humanity Since 1992 Habitat for Humanity in Montgomery County Tennessee has worked with 93 low-income families with more than 210 children to revitalise various parts of Clarksville-Montgomery County by building new homes
2016 Sustainability Report 43
Quality SystemFlorim USA works under a Quality System certified to UNI EN ISO 9001 standards The following are some of the figures in brief
Objective Indicator 2012 2013 2014 2015 2016
Optimisation of control of the production process
Percentage of First Grade Product ()
932 917 940 949 9510
Quality rate () 883 857 893 906 909
Scrap rate () 56 65 48 45 45
KeyPercentage of first grade product ratio between square feet of first grade material and total square feet transferred to stockQuality rate ratio between square feet of first grade material transferred to stock and square feet pressedScrap rate ratio between square feet pressed and square feet of product actually transferred to stock
Other ActivitiesFlorim USA and trade shows
In 2016 Florim USA participated at a number of shows and events including Coverings the AIA Tennessee Convention Hardscape North America Total Solutions Plus Neocon International Pool - Spa and Patio Expo These events targeted at the various categories of industry professionals such as dealers and designers gave Florim USA the opportunity to present its new range of indoor and outdoor products
Design Center
In December 2015 Florim USA opened a design center showroom in Nashville (TN) in a strategic location close to the airport and the city center With a spacious area to host individual CEU presentations and workshops this design center has the potential to be a major resource for local architects In 2016 it was also awarded the ldquoOutstanding Boothrdquo booth prize at the 33rd edition of the Annual Home Decorating and Remodeling Show The location is the ideal place for sharing ideas finding inspiration and putting professionals and architects in touch with each other
Florim Nashville Design Center
2016 Sustainability Report44
GRI International Sustainability Indicators SDGsThe information below illustrates the correspondence between the Florim (Italian companies) 2016 Sustainability Report the GRI-G4 guidelines and the icons of the Sustainable Development Goals (SDGs) definitively adopted by the United NationsA description of the SDGs is available at wwwglobalcompactnetworkorg
GRI indicators
Description Page Reference to SDGs
1 Strategy and Analysis
G4-1 Statement from the most senior decision-maker of the organization 5
2 Organization profile
G4-3 Name of the organization 2
G4-4 Primary brands products andor services 9
G4-5 Location of the organizations headquarters 9
G4-6 Number and names of the countries where the organization operates 9
G4-7 Nature of ownership and legal form 14
G4-8 Markets served 9
G4-9 Scale of the organization 8 8
G4-10 Significant changes regarding size structure or ownership 8
G4-11 Employees covered by National Collective Bargaining Agreement 27
G4-12 Describe the supply chain 16
G4-13Significant changes regarding the organizationrsquos size structure ownership or its supply chain
Reporting process
launched
G4-14 Precautionary principle 22
G4-15 List of external commitments in which the company is involved 22 32 33
G4-16 Associations or interest groups in which the company is involvedwwwflorimit gt
about us gt partnerships
3 Identified material aspects and boundaries
G4-18 Process used to define the report content 6
G4-19 Material aspects 16
G4-20 Boundaries of each material aspect 6
G4-21 Boundaries of each material aspect outside the organizationPartial reporting
(pages 6 16)
G4-22 Explanation of the effect of any restatements of information provided in previous reports 6
G4-23Significant changes from previous reporting periods in the scope boundaries or measurement methods
6
3 Stakeholder engagement
G4-24 List of stakeholders 15
G4-25 Identification of stakeholders 15
G4-26 Stakeholder engagement 6 16
G4-27 Key topics and concerns that have been raised through stakeholder engagement 16
4 Boundary of the Report
G4-28 Reporting period 6
G4-29 Date of publication 2
G4-30 Reporting cycle 6
G4-31 Contacts and addresses for additional information 46
5 GRI Content Index
G4-32 Reporting option chosen 6 7
G4-33 External assurance of ReportThe Report is not
externally assured
2016 Sustainability Report 45
GRI indicators
Description Page Reference to SDGs
6 Governance
G4-34 Governance structure 14
7 Ethics and integrity
G4-56 Values principles standards and norms of behavior 13 16
Economic performance indicators
EC1 Direct economic value generated and distributed 19 25789
EC5 Wages 27 158
EC7 Development and impact of infrastructure investments and services supported 23 24 31 257911
Environmental performance indicators
G4-EN2 Percentage of materials used that are recycled input materials 17 22 23 812
G4-EN3 Energy consumption within the organization 24 781213
G4-EN6 Reduction of energy consumption 17 24 71213
G4-EN7 Reductions in energy requirements of products and servicesPartial reporting
(page 22)71213
G4-EN8 Total water withdrawal by source 17 23 6
G4-EN10 Percentage and total volume of water recycled and reused 17 21 23 612
G4-EN11 Biodiversity 23 615
G4-EN15 Total indirect greenhouse gas emissions by weight 25 3121315
G4-EN16 Total indirect greenhouse gas emissions by weight 25 3121315
G4-EN19 Reduction of greenhouse gas emissions 8 24 1315
G4-EN21 NOx SOx and other significant air emissions 25 31215
G4-EN22 Total water discharge by quality and destination 23 6
G4-EN23 Total weight of waste by type 17 22 3612
G4-EN27 Impact mitigation of environmental impacts of products and services 23 68121315
G4-EN29 Monetary value of significant fines 22 16
G4-EN30 Significant environmental impacts of transporting products and goodsmaterialsPartial reporting
(page 25)111213
Social performance indicators
G4-LA1 Total number and rates of new employee hires and employee turnoverPartial reporting
(pages 17 27)8
G4-LA6 Workplace injury ratesPartial reporting
(page 17)38
G4-LA9 Average hours of training per year per employee 28 48
G4-LA12Composition of governance bodies and breakdown of employees according to gender age group etc
27 58
G4-LA13 Ratio of basic salary and total remuneration of women to men 27 5810
Society
G4-SO1 Operations with local community engagement 12 31 16
G4-SO3 Operations assessed for risks related to corruptionPartial reporting
(page 13)
Product responsibility
G4-PR1 Assessment of health and safety impacts for improvement 23 32
G4-PR3 Type of information about products and services required by the procedures 32 12
G4-PR5 Proceedings relating to customer satisfaction including surveys conducted to measure it 33
G4-PR6 Sale of banned or disputed products 32
G4-PR8 Number of substantiated complaints regarding breaches of privacy 32 16
2016 Sustainability Report46
Your Assessment
You are kindly requested to take a few minutes of your time to give us your assessment and any suggestions to enable us to improve future editions of our Sustainability Report
Click here to send us your feedback
To keep up to date with our business
Spazio CEDIT - interior (Milan)
wwwflorimiten
Florim Ceramiche
Florim4Architects
Florim_ceramiche
Florim Ceramiche spa
Florim Ceramiche
Florim Ceramiche
For any further information please feel free to contact our communications department comunicazioneflorimit
2016 Sustainability Report 47
Premio Lucchese - Florim Gallery (Fiorano Modenese - Modena Italy)
Intrapresaelig Guggenheim Collection - Massimo Bottura in Florim Gallery (Fiorano Modenese - Modena Italy)
Panathlon Christmas Gala - Florim Gallery (Fiorano Modenese - Modena Italy)
2016 Sustainability Report48
White Christmas Party - Florim Gallery (Fiorano Modenese - Modena Italy)
Cersaie - Mario Biondi in Florim Gallery (Fiorano Modenese - Modena Italy)
Dal buio alla luce - Social event at Florim Gallery (Fiorano Modenese - Modena Italy)
2016 Sustainability Report 49
Florim Gallery entrance (Fiorano Modenese - MO)
2016 Sustainability Report52
Florim Ceramiche spaVia Canaletto 24 - 41042 Fiorano Modenese (Modena Italy) - Tel +39 0536 840111 - wwwflorimit
2016 Sustainability Report 19
Economic Value Generated and Distributed
The figures for the economic value generated and distributed provide a simple clear explanation of how Florim has created wealth and redistributed it to its stakeholders The table below contains the data from Florims 2016 financial statements approved by the Board of Directors on 30 March and certified by external auditorsThe economic value directly generated is represented by the total earnings for 2016 while the economic value distributed includes the costs incurred for suppliers and employees payments to the state (taxes) and the donations which had positive repercussions for the community to which Florim spa belongs
Heading 2014 2015 2016
Revenues 253125 269855 302521
Direct economic value generated 253125 269855 302521
Operating costs 135735 150951 168809
Employee wages and benefits 56985 58149 62418
Payments to providers of capital 7413 6399 11903
Payments to government 15738 13162 15382
Community investments 221 212 240
Economic value distributed 216092 228873 258752
Economic value retained 37033 40982 43769
KeyRevenues net sales plus revenues from financial investments and sale of assetsOperating Costs payments to suppliers non-strategic investments royalties payment facilitationsEmployee wages and benefits employee wages and benefits per employees (current payments)Payments to providers of capital all payments to the organizations providers of capitalPayments to government gross taxes and dutiesCommunity investments voluntary donations and investments in the communityEconomic value retained calculated as economic value generated less economic value distributed
The data in the table are in thousands of Euro and refer to the consolidated financial statements of the Italian companies only
KBIS (USA) - detail of the stand created with ldquoI Classici di Rexrdquo
2016 Sustainability Report20
Casa dolce casa ndash Argille 20 Collection
2016 Sustainability Report 21
Environmental ResponsibilityEffective environmental policy management energy saving and emissions reduction are amongst Florims strategic sustainability objectives
Our green projects in figures
2 highly-regarded process certifications
ISO 14001 (ENVIRONMENT)and ISO 50001 (ENERGY)
849873 MWh is the amount of electricity the
company succeeded in producing in-house during 2016
2 departments (marketing and communications)
engaged on digitizing advertising tools
8462 tons of CO2 NOT emitted
CO2
100 is the percentage of wastewater recycled
16000 msup2of photovoltaic panels covering
an area of 30000 msup2
75 is the percentage of the electricity consumed which is
produced in-house
4 latest-generation industrial kilns installed in
the last 3 years
4 different types of environmental product
certification
2 cogeneration plants to increase energy saving
and efficiency
1 laboratory for the development of contemporary design projects with a specific focus on the materials green
content
100is the percentage recycling of
industrial greenware waste in the production process
2016 Sustainability Report22
Certifications
System and process certifications
UNI EN ISO 14001TUumlV has awarded Florim the highly-regarded UNI EN ISO 14001 voluntary certification which confirms its compliance with a series of internally certified procedures intended to improve the internal environmental management system The decision to seek this certification springs from the desire to reconcile quality with efficiency and productivity while protecting the environment and community in which the company operates
UNI EN ISO 50001Thanks to a careful energy management policy and aided by the latest investments in the production area also intended to improve energy efficiency Florim was the worlds first ceramics manufacturer to obtain ISO 50001 certification of its Energy Management System
In addition to its environmental certifications Florim has also been awarded prestigious AEO (Authorized Economic Operator) status
Further to a lengthy and demanding audit process by the Customs Authorities in 2016 Florim was awarded AEO certification the first company in the Province of Modena to receive this major form of approval Authorised Economic Operator status guarantees the companys absolute compliance with customs and security requirements in its foreign trade
Environmental Management
Waste 2012 2013 2014 2015 2016
Total waste produced (t) 30228 21170 22300 30862 34423
Non-dangerous recyclable waste (such as paper and cardboard fired scraps plastic glass and wood) ()
989 982 985 991 989
Non-dangerous disposed-of waste (such as the waste picked up by the motor sweepers) ()
02 04 02 02 02
Dangerous recyclable waste (such as spent oil batteries and monitors) ()
00 01 01 01 00
Dangerous disposed-of waste (such as spent lime) () 01 13 12 07 09
Third-party waste recycled within the production process (t) () 4028 4190 1721 2570 5627
Besides recycling greenware waste from its own production cycle (not included in the table because the amount cannot be calculated) Florim also recycles third party waste
Florims operations have always been oriented towards optimization of impact on the local community and environment Thanks to the work of its research laboratories the support of all staff and the recent investment plans tangible results have been achieved The data provided below reveal that in spite of an increase in production of 8 compared to the previous year consumption remains low The companys commitment to environmental protection is all-inclusive and also comprises a focus on the district within which it operates One example is the total removal of all asbestos cement from the Fiorano Modenese plant and the creation of the new recycling station opened in 2015 and donated to the Local Authority as a public serviceAs in previous years during 2016 Florim was not fined for any breaches of environmental regulations or laws
Florim recycles and optimises within the production process all greenware scraps dust residues from filters and sludge from the process and rectification wastewater treatment system The waste produced is detailed in the table the significant differences between years are due mainly to the major demolition and subsequent reconstruction works undertaken at the Italian plants
Waste Management
2016 Sustainability Report 23
Water Resources
No environmental impact of wastewater discharges is specified since all the water from the production cycle is completely reused (100) All other effluents comply with legal requirements
The figure states the total cubic meters of water used per ton of finished product The water used in the Fiorano production process is drawn from private company-owned wells with water from the public main only used for non-industrial purposes The Mordano plant is supplied by an industrial water main Water use is measured by means of meter readings Four highly innovative dry rectifying plants have gone into production at Mordano since 2015 enabling the company to eliminate the physicalchemical treatment of the water used in the rectification process
WATER USE
2012
08
2013
08
2014
08
2015
07Total water consumption (msup3) finished product (t)
07
2016
All packaging used for Florim materials is made from recycled paper and parts of the coverings used to protect pallets of finished products consist of recycled plastic Whats more all the packaging used (boxes cardboard shrink wraps pallets etc) can be completely recycled by the end user The latest investments made include new eco-friendly packaging machines increasing the number of these machines installed to 15 These plants completely eliminate waste due to leftover inventory saving significant amounts of cardboard
Packaging and Coverings
As the materiality assessment states Florim has no significant impacts on the biodiversity of its local area since the company is located inside the Fiorano Modenese ceramics manufacturing district at least 5 Km from the nearest nature reserve at Salse di Nirano Florim takes special care over the choice of the raw materials used for its tile body mixes of which it is required to provide documentation guaranteeing compliance with the European Directives protecting wild birds (EU Dir 79409EEC) and habitats (EU Dir 9243EEC) and the United Nations Convention on the protection of biodiversity It has also introduced a software program - used at the 3 production plants (Italy and the USA) - for the management of data on the origin of raw materials such as quarry location distance from the factory recycled content declaration technical safety and radioactive content data sheets and the expiry of the quarrying permit issued by the government
Raw Materials and Biodiversity
2016 Sustainability Report24
Energy Management
There is no disputing that large amounts of energy are required to power the production processes of ceramic tile plants with consequent direct and indirect impacts on the local area and the environmentThe main indicator used to measure plants energy performance is the mean specific total energy consumption (TEJ) measured in GJt of product transferred to stock As the table below shows this figure is obtained by adding together heat consumption (NGJ) and electricity used (EEJ)
Parameter ndash Definition Unit of measurement
2012 2013 2014 2015 2016
NGJ Mean specific natural gas consumption in relation to the unit of weight of finished product transferred to stock
GJt 557 571 576 578 598
EEJ Mean specific electricity consumption in relation to the unit of weight of product transferred to stock
GJt 111 108 111 108 107
TEJ Mean total specific energy consumption in relation to the unit of weight of product transferred to stock
GJt 668 679 686 685 705
Self-generated electricity as a proportion of consumption
67 68 62 65 75
With two cogeneration plants (for the combined in-house production of heat and electricity) and 16000 msup2 of photovoltaic panels the company certainly sets a new benchmark for the entire ceramic tile industry 2016 saw the replacement of the Fiorano turbine set (the main component of the cogeneration plant) while the one in Mordano was kept in operation 247 factors which led to a 10 increase in in-house electricity production in relation to consumption To provide a clearer idea of the scale of the achievement the amount of electricity the company generated in-house in 2016 (849873 MWh) would cover the average annual consumption of about 37000 households (With consumption per household of 229 MWh - data from the latest ISTAT survey in 2012ndash calculated on the Italian average)
Photovoltaic Plant
kWp kWh produced kg of CO2 not emitted
270021 15937250 8462680
Good Practice
The head office organizations are also optimizing paper and energy consumption In addition to issuing and distributing the energy saving handbook for its offices the company is also trying to maximize savings on the raw material used and specifically the use of paper Internally the company only purchases reams of paper which carry environmental certification and the paper used in offices is collected separately for proper disposal Externally the company distributes a system of merchandising products made mainly from recycled paper and encourages the gradual digitization of its marketing tools as well as publishing all its catalogues in digital format on its Internet sites Florim offers its distributor companies an innovative digital touch screen tool with the pdf versions of the catalogues and other tools for the final consumerIn 2016 Florim decided to adopt a new payslip distribution procedure introducing an online processing system As well as providing employees with new functions and greater operating flexibility thanks to this system the company no longer prints out the monthly payslips saving paper ink and energy The scheme initially involving all office workers has the ambitious target of also including the staff of the Fiorano and Mordano plants
The 16000 square meter photovoltaic plant received recognition from GSE (Energy Management Services) as one of the most innovative installations of its type and from its commissioning (October 2011) up to December 2016 it produced the following results
2016 Sustainability Report 25
Atmospheric Emissions
The industrial facility emits greenhouse gases basically CO2 from the following main sourcesbull combustion from the burning of fossil fuels (such as natural gas)bull processes from the minerals in the raw materials any organic matter in the clays used and any organic additives in tile body mixes
In order to comply with Directive 200387EC (ETS - Emission Trading Scheme) Florim has been reporting and certifying its CO2 emissions since 2013
CO2 emissions 2013 2014 2015 2016
CO2 emissions (t) 102728 103462 111862 132960
CO2 emissions (t) Finished product (t) 033 033 033 035
Emissions from the production cycle 2013 2014 2015 2016
Particulate material (gmsup2 finished product) 223 130 098 118
Lead (gmsup2 finished product) 000 000 000 000
Fluorine (gmsup2 finished product) 014 018 013 012
The increase in CO2 is due mainly to the large increase in the square meters produced (+ 8) and the 247 use of the cogeneration plant However it should be noted that the cogeneration plant provided a 10 increase in in-house electricity generation with lower CO2 emissions than electricity purchased from the grid produced mainly using fossil fuels (source ISPRA Fattori di emissione atmosferica di CO2 e sviluppo delle fonti rinnovabili nel settore elettrico Rapporti [Atmospheric CO2 Emission Factors and Development of Renewables in the Electricity Sector Reports] 2122015)The ratio between CO2 emissions and tons of finished product produced increased because in 2016 the sale of spray-dried material to other companies rose compared to the previous year (emissions from this phase are included in the emissions count but there is no corresponding output of finished product)
In a change from previous years the new GRI-G4 guidelines also require reporting of nitrogen oxide and sulphur oxide emissions Nitrogen oxide (NOx) emissions are within the limits permitted under the integrated environmental authorisation Sulphur oxide (SOx) emissions are not reported here since this figure is not required by the IEA
Transport
The materiality study reveals that transport is a significant factor for both stakeholders and Florim itself The company is not able to measure the impact of transportation of finished product on the local area since all shipments are ex-works However Florim which has been introducing electric vehicles to replace its oldest most obsolete unleaded petrol forklifts for years now has further optimized the handling of materials thanks to the new highly-automated logistics hub created at the via Canaletto location In 2016 about 53 of the vehicles used on the companys premises were electric with no direct greenhouse gas emissions
2016 Sustainability Report26
CEDIT ndash Creative Composition
2016 Sustainability Report 27
Workforce Composition
In 2016 the workforce included 27 people with disabilities 6 women and 21 menBearing in mind the job descriptions arising from the specific industrial sector the breakdown between men and women is in line with the industry average Male office workers and executives earn an average of 10 more than women for jobs of equal responsibility Among blue-collar workers the difference is 7 The company had a total of 29 foreign employees 24 at Fiorano and 5 at Mordano
Manager Executive Office worker
2013 2014 2015 2016 2013 2014 2015 2016 2013 2014 2015 2016
Women 2 3 3 3 3 1 1 1 137 142 133 149
Men 18 21 20 18 21 24 25 28 127 132 128 132
Total 20 24 23 21 24 25 26 29 264 274 261 281
Office ancillary Blue-collar worker Total
2013 2014 2015 2016 2013 2014 2015 2016 2013 2014 2015 2016
Women 18 16 25 19 226 219 212 196 385 381 375 368
Men 64 68 79 64 376 358 356 377 607 603 607 619
Total 82 84 104 83 602 577 568 573 992 984 982 987
Social Responsibility
Employees amp Corporate welfare
Its employees are the heart and soul of Florim they provide its character and its DNA Since 2009 when the current major economic crisis began Florim has undertaken a number of income support programs for its workforce Below we summarise some of the ongoing programmes and others run in 2016bull Ending of the Income Support Program for the Mordano plantbull Agreement with Sassuolo Hospital under which Florim employees and their family members enjoy discounts and shorter waiting times for specialist examinations and outpatient diagnostic tests performed on a private basisbull Special agreements with local health facilitiesbull Tax advice at special rates bull Special terms for banking services with financial consultants on-sitebull Discounts on the purchase of Florim products for employees homesbull Free entry to the Peggy Guggenheim Collection in Venice for employees and concessions for family membersbull Free provision of water and mineral salts in the plants during the summerbull Distribution of fuel vouchers to employees for the Christmas holidays
Summer Play Schemes and Cregraveches
In 2016 the summer play schemes for the children of employees at Fiorano and Mordano were continued for the fifth year in succession Seven different centers across the area between Modena and Bologna hosted 85 children (twice the number of the previous year) the company paid the fee for two weeks attendanceWhats more since 2013 the company has negotiated special terms with local cregraveches which now offer a number of places for employeesrsquo children at a reduced fee
2016 Sustainability Report28
Human Resources Management Policies
In July 2015 on renewal of the in-house supplement to the national employment contract the Management introduced a new phase in its relations with the Trade Unions with the aim of continuing and improving the good relationships enjoyed for decadesThe new company contract applied for all employees at the Fiorano headquarters includes more facilitations for part-time working the willingness to allow flexitime where feasible and the commitment to invest in staff training in order to generate full benefits from intellectual capital The company and the trades unions agreed on a plan to improve efficiency fundamental for maintaining the current level of competitiveness by establishing improvement in Production Efficiency and EBITDA as criteria for the payment of the new Performance Bonus The individual Attendance Score is considered together with these parameters The 2016 Performance Bonus in its first year of application was 20 higher than that paid in 2015 In addition in response to employees requests the Company increased the number of approved canteens extending the choice available and also introduced weekly laundering of work clothing for all production workersWith regard to applications for severance pay advances the Company confirms its commitment to continuing the policy implemented so far
Training
Florim believes that in-house training plays a key role in the companyrsquos development and provides a tool for stimulating and fulfilling the potential of its human resourcesMore than 10600 training hours were provided in 2016 to 847 people with an average of more than 11 hours of training per employee New projects included a 6-month on-line English language course which attracted a large number of participants and two highly structured training courses for the sales division and the communication department A retraining program for workers at the Mordano plant was also completed it comprised 4 technical courses attended by 31 people for an average of 13 hours per person Another new entry for 2016 was an innovative procedure for acquiring information about training needs using an on-line questionnaire available to all employees as well as line managers specific recommendations The Master in Florim project is discussed in depth in the specific section
Health and Safety
Florim was the first Italian ceramics manufacturer to receive BS OHSAS 18001 (Occupational Health amp Safety Assessment Series) certification from TUumlV this international standard certifies the implementation of an internal management system oriented towards occupational health and safetyThis major award confirms the companys constant commitment to the well-being of its employees Every year in addition to engineering inspections and machinery maintenance a number of hours of safety training are organised to raise awareness among workers and supervisors Specifically in 2016 2849 hours were dedicated to safety training and a significant reduction in injury rates was recordedMoreover BLSD refresher courses are continuously held for the team of Florim employees trained in first-aid operations and the use of the defibrillators available on site
2012 2013 2014 2015 2016
Number of workplace injuries 63 62 74 56 43
2016 Sustainability Report 29
The Master in Florim organized for the fourth time in 2016 is a vocational training project which aims to bridge the gap between education (high school or university) and the world of work The program which is one of the companys Social Responsibility projects sets out to help young people to get to know the company through a well structured work experience plan It offers a distinctively northern European approach with a method which alternates classroom teaching with internships in the various areas of the company Participants new university or high school graduates specialising in various subjects all below 30 years of age are therefore able to gain hands-on experience of all Florim departments from RampD to the production process and product distribution for an all-inclusive vision The MASTER courses ambitious aim is to match the individual participants talents with the companys real needs At the end of each edition the company hires all or some of the selected candidates enabling it to acquire new skills new experiences and new energy
Master 40 in figures
20 young people taking part6 months of training13 external lecturers264 hours of classroom teaching392 hours of practical training4 company visits (Ferrari Tetrapak Cremonini and Ducati)50 days of work experience on rotation involving 15 departments1 month of project work
The projects prestige is enhanced by its economic context since Florim pays the young participants for the entire period and its aim is to deal with the thorny problem of youth unemployment The Master has won approval from various faculties at major Italian universities The project was also a winner in the Emilia-Romagna Regions 2016 awards for Corporate Social Responsibility projects run in the local community A prize in the ldquoBusiness and Educationrdquo category was assigned to the Master project which aims to give young people the skills required for sustainable development
Master in Florim
2016 Sustainability Report
Watch the videoof the 4th edition
2016 Sustainability Report30
Local Community amp Culture
This chapter describes a number of programs Florim runs for the local community in the area where it originated and where it has been working for more than 50 years
Politecnico di Milano
Since the 20052006 academic year Florim has been a partner sponsor of a large number of Postgraduate Courses run by POLIDesign the Politecnico di Milano consortium which organizes its Master Degree coursesAlso in association with POLIDesign since 2012 Florims Milan showroom has hosted several design events for architects and designers of every nationality
Aziende modenesi per la RSI
ldquoAziende Modenesi per la RSIrdquo an independent open inclusive association of companies in the Modena area which believe in the principles and values of Corporate Social Responsibility was established by public deed on 30 September 2014 with Florim as a founding member Florim hosts the associations member companies every year to discuss the various topics proposed
Premio Lucchese
The Premio Lucchese presented for the twenty-ninth time in 2016 was established in memory of Giovanni Lucchese and consists of scholarships awarded to students at the ldquoAlessandro Voltardquo Technical High School in Sassuolo who graduate with full marks The award ceremony held every year at the Florim Gallery in association with Societagrave Ceramica Italiana of Bologna includes a talk given by a leading personality on a topic of current interest to an audience of eager young listeners
Intrapresaelig Collezione Guggenheim
As befits a company that combines the values of its local community and historic and artistic heritage with a flair for research and innovation Florim recently launched a partnership with the Peggy Guggenheim Collection Since its foundation Florim has always had a unique ability to incorporate the true cultural significance of its industry in its business model and by this project once again confirms its commitment to promoting art by supporting a collection of extraordinary beauty
Fondazione Ing Giovanni Lucchese
More than thirty years after the untimely death of Giovanni Lucchese ndash founder of what was then Floor Gres currently Florim ndash in 2013 his family established a Foundation in his name which since then has funded organizations and associations that support families in need in the ceramics district The Foundation also supports a variety of projects such as the summer play scheme for employees children the Premio Lucchese and the Florim HealthampTraining Center described in more detail below
The main projects undertaken in 2016 include the funding of the purchase of 10 defibrillators for the Municipality of Fiorano and the contributions made to the purchase of paediatric ambulances for the local area and to support the Parish charitable organizations and social services in the district
Watch the Premio Lucchese video
The project run jointly by Florim and Sassuolo Hospital adopts a completely new model combining industrial culture and healthcare in an original way to benefit the local people and community thanks to the coming-together of a ceramic coverings manufacturer and the public-private joint venture Ospedale di Sassuolo Spa Florim HealthampTraining is the synthesis of this idea an experimental center which promotes local training for healthcare and other staff health education and information advanced medical simulation and research
The Center
On the main Florim site and opened on 16 April 2014 the Center is 550 square meters in area and contains a modular lecture theatre able to seat over 100 people and a number of classrooms for seminars and lessons At its heart is a state-of-the-art control room crammed with technology that operates dummies capable of reproducing human functions of all kinds Advanced simulation is a major aid to maintaining the skills of emergency healthcare workers with a particular focus on pediatric and neonatal resuscitation
Health meetings
Designed as a space for community use the Center also aims to become a place where all sections of the population - workers schoolchildren parents teachers volunteers and even just members of the public - can learn about preventive health care and acquire first aid skills After the distribution to Florim employees of a questionnaire surveying their training needs and preferences a Center Scientific Committee of Sassuolo Hospital medical personnel was appointed and drew up a plan of bi-monthly ldquoHealth meetingsrdquo All meetings are led by doctors with expertise in the various topics who answer the many questions from the audience at the end of their talks Between its opening and the end of December 2016 the Center hosted 13 meetings on a variety of topics attended by about 1000 people including employees their family members and the community at large
Healthcare discounts for Florim employees
The project also includes a major welfare program for all Florim employees and their family members entitling them to discounts and shorter waiting times for specialist examinations and outpatient diagnostic tests performed on a private basis
American Heart Association
The world-famous American Heart Association (AHA) is the oldest and most respected American voluntary organization dedicated to the fight against cardiovascular diseases and strokes In 2015 the AHA via the Simaid International Training Center named the Florim HealthampTraining Center as an Authorized Training Site for basic and advanced cardiopulmonary resuscitation
Florim HealthampTraining Center
2016 Sustainability Report
Watch the Health amp Training Center video
2016 Sustainability Report32
Product Responsibility
Here we summarize the concept of Made in Florim denoting a product that encapsulates the companys core values passion innovation a constant commitment to improvement and corporate social responsibility
Florim product certifications
CE Marking guarantees the user that the materials purchased meet the requirements of the relevant regulations and that the characteristics concerned are virtually unchanged for all production lots It is a declaration of conformity which protects the consumerrsquos safety The presence of the CE Marking on packaging guarantees that Florim products comply with the relevant regulatory requirements
Ecolabel (EC Regulation 662010) is a certification granted to products which comply with ecological and performance criteria set at a European level concerning raw material extraction supplier selection manufacturing processes packaging distribution use and disposal The certified Florim collections are Architech Ecotech Reverse Walks 10 by Floor Gres and Pietra del Nord under the Rex brand
Several ceramic tile collections bearing the Florim brands have earned certification from Bureau Veritas for their pre-consumer recycled material content These articles are therefore fully eco-compatible and can meet the environmental sustainability requirements imposed by many international certifications
Florim is a member of the US Green Building Council (USGBC) the most important association which promotes the reduction of buildings negative impact on the environment To allow the effective monitoring a projects level of sustainability the USGBC has developed a certification procedure for the development of sustainable buildings which assess and certifies the sustainability of a building in its entirety Florim materials are able to help to gain LEED points in a number of areas (data available on the Florim brand websites)
Florim has achieved the prestigious Greenguard certification for all its products Issued by the American body UL Environment this certification aims to reduce indoor pollution caused by interior design systems and materials UL Environment thus aims to protect health by improving air quality and reducing peoples exposure to chemicals and other pollutants Florim has also achieved Greenguard Gold Certification which imposes even stricter limits to confirm that a given product is suitable for use even in locations such as schools and health care facilities
The EPD or Environmental Product Declaration is a document which defines the environmental impacts arising from production In 2016 Florim participated in the study - certified by the German organization IBU - performed on the ceramics industry average data which aims to raise international awareness of the excellence of the environmental standards achieved
Beyond the standardsMade in Florim products are a guarantee of safety highly innovative content and eco-friendliness The people who produce them work in a safe place and in ethically sustainable conditions Due to their nature all Florim products are guaranteed free from pollutant emissions do not accumulate electrostatic charges are frostproof and completely inert and are undamaged by contact with flames The Groups Internet sites and collection catalogues contain the technical data sheets which detail the product information (slip-resistance breaking strain abrasion resistance etc) for every collection as well as its recycled material content with the relative certificates
During the period under consideration no banned products were placed on the market and the company was not found guilty of any breaches of the law with regard to data protection or its marketing and communication activities
EU Ecolabel nr IT2104
2016 Sustainability Report 33
Quality SystemThe current ISO 9001 standards define quality as the ability to satisfy explicit or implicit needs via a product or a service A Quality System implies constant improvement of company processes in order to realise products that always satisfy the customerrsquos needs Further to the 2016 audit Florim obtained the renewal of its UNI EN ISO 90012015 certification for the design manufacture and sale of all categories of ceramic tile
Objective Indicator 2012 2013 2014 2015 2016
Continual improvement of control of the production process
Percentage of First Grade Product ()
924 943 942 952 956
Quality rate () 883 905 903 905 909
Scrap rate () 44 41 42 42 49
Productivity (sq mhour) 186 188 186 190 200
Improvements in sales performance and customer satisfaction
Innovation rate () 330 296 367 455 364
Coverage () 795 714 814 813 816
Total portfolio shippable within one month ()
911 837 888 893 897
Optimization of range and stocks
Obsolete stock () 172 126 165 120 69
Stock turnover rate () 13 15 16 15 16
Gradual elimination of disputes complaints and claims concerning service
Square meters affected by complaints ()
17 12 08 12 09
Complaints by number of order items ()
10 11 11 10 10
Gradual improvement in staff skill levels
Employee turnover () 15 23 04 04 12
KeyPercentage of first grade product percentage ratio between the square meters of first grade products and the total square meters transferred to stockQuality rate percentage ratio between the square meters of first grade product transferred to stock and the square meters leaving the pressesScrap rate percentage difference between square meters of material leaving the presses and square meters of product actually transferred to stockProductivity ratio between the square meters transferred to stock and the total hours worked in the plantInnovation rate ratio between square meters sold belonging to series designed in the last three years and total square meters sold Florim uses this indicator to assess the effectiveness of its design process in terms of salesCoverage percentage ratio between square meters available for immediate shipment and the square meters on orderTotal portfolio of orders shippable within one month percentage ratio between the square meters which can be shipped in 30 days and the square meters on orderObsolete stock percentage ratio between the square meters of substandard discontinued produce and the total square meters in stock Stock turnover rate ratio between the square meters sold and the square meters in stockSquare meters affected by complaints percentage ratio between the square meters affected by complaints and the square meters soldComplaints by number of order items percentage ratio between the number of complaints and the number of items orderedEmployee turnover percentage ratio between the number of employees leaving the company and being replaced and the workforce at the start of the year
2016 Sustainability Report34
Casamood - Neutra 60 Collection
2016 Sustainability Report 35
OUR COMMITMENTS
The promises we keptIn our last Sustainability Report we committed to achieving a large number of objectives the following are the outcomes we attained
Relaunch of the ldquoCEDIT ndash Ceramiche drsquoItaliardquo brand OBJECTIVE ACHIEVED
Launch of the FLORIM stone brand OBJECTIVE ACHIEVED
Installation of a new latest-generation kiln at the Mordano plant OBJECTIVE ACHIEVED
Transfer of the Moscow showroom to new premises SCHEDULED FOR 2017
Creation of a new gatehouse at the Mordano plantOBJECTIVE POSTPONED TO GIVE PRIORITY TO THE CONSTRUCTION OF THE NEW FACTORY
Introduction of ERP system at Florim USA OBJECTIVE ACHIEVED
Installation of a new spray dryer and raw material handling system at Florim USA
OBJECTIVE ACHIEVED
Economic Responsibility
Renewal of certification of the Florim environmental and energy management system
OBJECTIVE ACHIEVED
Award of new certifications for collections manufactured with a high recycled material content
OBJECTIVE ACHIEVED
Continuation of work to reduce environmental impacts at Mordano especially with the reduction of energy costs
OBJECTIVE ACHIEVED
Continuation of the work to remove asbestos cement roofing materials at the Mordano plant
OBJECTIVE ACHIEVED
Expansion of the system which conveys rainwater to the treatment plant OBJECTIVE ACHIEVED
Reduction of the noise emissions of the air filtering systems OBJECTIVE ACHIEVED
Increase of recycling targets through constant awareness-raising amongst all staff and optimisation of recycling facilities
OBJECTIVE ACHIEVED
Continuation of replacement of the diesel forklift trucks for use on outdoor yards with electric vehicles
OBJECTIVE ACHIEVED
Environmental Responsibility
Running of fourth edition of Master Florim course with new procedures OBJECTIVE ACHIEVED
Creation of an internal refreshment area for the Fiorano office staff OBJECTIVE ACHIEVED
Improvement of corporate welfare through the activation of new free services and discounts tailored to employees needs
OBJECTIVE ACHIEVED
Continuation of the health meetings for the local community in association with Ospedale di Sassuolo Spa
OBJECTIVE ACHIEVED
Organization of new community events at Florim Gallery OBJECTIVE ACHIEVED
Organization of Florim Family Day 2016 A PARTY WAS ORGANISED FOR EMPLOYEES
Social Responsibility
2016 Sustainability Report36
The targets we set for ourselvesWe aim to achieve the following objectives in 2017
Economic Responsibility
Construction of a new factory at Mordano to produce large slabs
Launch of the project to unite the Florim spa sales organizations
Total restyling of the corporate and brand Internet sites
Launch of the HUB project - Intranet CRM Marketing Automation
New plants at Florim USA a press two sorting lines a polishing and rectifying line
New working spaces and cloakrooms for technical staff at the American plant
Environmental Responsibility
Purchase of a new cogenerator for the Mordano plant
Introduction of a new rainwater collection system at Fiorano
Land reclamation project involving covering of the Rio Spezzano stream at Fiorano
Implementation of new software for continual monitoring of energy impacts at Fiorano
Modernisation of the compressor room to improve energy impacts at Mordano
Increase of recycling targets through constant awareness-raising amongst all staff and optimisation of recycling facilities
Continuation of replacement of the diesel forklift trucks for use on outdoor yards with electric vehicles
Social Responsibility
Improvement of corporate welfare through the activation of new free services and discounts tailored to employees needs
Continuation of the health meetings for the local community in association with Ospedale di Sassuolo Spa
Organization of new community events at Florim Gallery
Organization of a new event for Florim spa employees
New offices for hospitality and events staff at Fiorano
2016 Sustainability Report 37
FLORIM USA
Profile and Economic ResponsibilityFlorim USA with registered office at Clarksville - Tennessee - and its subsidiary Florim Solution Inc have been part of the Florim Group since 2000 The Florim USA manufacturing plant one of the largest most technologically advanced in the United States produces porcelain stoneware tiles for the residential market and undertakes commercial projects in North America During the last few years Florim USA has implemented a growth and process optimization strategy which has generated significant technological progress with more innovations planned for the future The strategy adopted will put Florim USA at the worldwide state of the art in porcelain stoneware tile manufacture
In 2016 of the 18 million USD invested 147 was allocated for installation of a latest-generation raw material handling system and a large spray-dryer with an innovative sorting system Improvements were made to other parts of the process to increase their efficiency leading to a further reduction in emissions and scrap rates Additional investments are planned during 2017 to continue this dual trend of rising production with mitigation of environmental impact
The new Florim Flagship Store in New York (152 Madison Avenue 32nd Street)
2016 Sustainability Report38
Environmental ResponsibilityFlorim USA implements the same environmental policy as Florim and is committed to achieving the following objectives
bull reduction of the energy used in the production processbull improvement of the waste management process with a focus on recovery and reusebull introduction of new more eco-efficient technologiesbull adoption of integrated management systems
Florim USA has been pursuing a strategy of careful management of its operations and environmental impact for a number of years Here we summarise the main actions taken and the results achieved in 2016
bull installation of a latest-generation spray-dryer in 2016bull installation of an innovative raw material handling system in 2016bull 100 recycling of wastewater within the processbull optimisation of the management of water bottles with elimination of about 34200 of them per annumbull reuse of almost all production scrap (+99)bull 157000 kg of cardboard recycled in 2016bull award of two different types of product certificationbull 9300 kg of plastic recycledbull recycling of 17 complete trucks of pallets
Environmental Projects and Awards
Florim USA has received Clarksville Montgomery County Green Certification (CMCGC) CMCGC is a program designed to help companies learn and implement best practices in the area of environmental stewardship to sustain the local communityrsquos resources through a series of free workshops taught by local environmental specialists Since 2014 Florim has allocated some of its Environment Managers time for the running of these workshopsFlorim USA earned this green company certification thanks to a large number of projects first and foremost the one which eliminated the use of disposable water bottles replaced with individual reusable bottles provided by the company and a series of fill-up stations About 34200 bottles are removed from the waste cycle every year
During the latest phase of its plant optimization Florim USA has implemented a thorough construction material reuse policy In the various stages of demolition of the old plants including the old storage silos the concrete debris was recovered and reused in other construction worksThis project alone generated 11500 tons of recycled aggregate as well as several hundred tonnes of metal sold to a recycling firm
Environmental management system and eco-compatible products
Florim USArsquos products help builders and designers to meet the requirements for sustainable buildings as defined by the United States Green Building Council (USGBC) through the LEED Green Building Rating System This protocol evaluates and certifies the environmental sustainability of a building as a unit from its design to its day to day management To gain LEED credits many of the Florim USA product lines contain a significant percentage of recycled material (40 or more)This feature contributes to an increase in the LEED score in the projects where these products are installed In 2014 Florim USA together with a large number of other US tile manufacturers and the Tile Council of North America drew up a type III environmental product declaration (EPD) certified under the ISO 14025 standard This ceramic tile life-cycle analysis enables Florim USA products to gain LEED points under the new LEED v4 protocol
2016 Sustainability Report 39
Water use (gallonsper million square feetof finished tiles)
208137 216246 204962 195280 194268
Energy use
2012 2013 2014 2015 2016
Cubic feet of natural gas per million square feet of finished tiles 9343383 9149721 8331170 8390503 8380000
kWh per million square feet of finished tiles 510972 491171 450594 465976 490300
Emissions
Particulate material lt 21024 tonnes per annum
SO2 (sulphur dioxide) lt 1674 tonnes per annum
VOC (volatile organic compounds) lt 1245 tonnes per annum
NOx (oxides of nitrogen) lt 1501 tonnes per annum
Environmental performance indicators ndash summary
The following are the main environmental indicators related to the impact and performance of Florim USA during 2016
Pre-consumer recycled material
Its internal material recycling processes enable the company to minimise its environmental impact since most of the material which would otherwise be sent to landfills or other waste treatment centers is reusedbull Wastewater is entirely recycled within the production process without any discharge into the municipal drainsbull The material in the collection bags from the tile body and glaze preparation areas the press and glaze application is entirely recycled within the processbull All scrap fired tiles are entirely recycled within the processbull 157000 kg of cardboard was sold to an external recycled material dealerbull 17 trucks of unusable wooden pallets were sold to a pallet regeneration companybull About 9300 kg of waste shrink-wrap plastic film was recovered and recycled
Post-consumer recycled material
About 82000 kg of glass was removed from the flow of waste destined for the local landfill and recycled within the process Florim USA has signed an agreement with the local landfill for consignment of all the glass it handles which is collected and set aside for recycling
Water use disposal and reuse
The water used during the production process is recycled continually therefore no water is discharged into the municipal drains
The 2016 emissions figures are in line with those for previous years well below the standards laid down
Water use 2012 2013 2014 2015 2016
Water use (gallons per million square feet of finished tiles) 216246 204962 195280 194268 203928
2016 Sustainability Report40
Social Responsibility
Employees
The Florim USA workforce comprises 348 staff employed at the production site the Clarksville and Nashville outlet stores and the Florim Solution offices Of the 348 employees 273 are blue-collar workers and 75 office staff 5 employees are Italians on secondment to the United States Florim USA offers a number of benefits to full time employeesbull health and dental care insurancebull Vision insurancebull life insurance for employees and optionally for family membersbull temporary and permanent disability supportbull employee pension plan
2012 2013 2014 2015 2016
Workplace injuries 50 41 22 29 27
The Employee Assistance Program (EAP) also offers support to employees and their families in the event of psychological difficulty or other problems that can have a negative impact on their quality of life Florim USA supports all the costs of the program
Equal opportunities
Florim USA provides equal opportunities in all employment practices to all qualified employees and applicants regardless of race colour religion gender national origin age disability or membership of the armed forces or any other category protected by federal state or local laws
Health and safety
FLORIM USA is committed to ensuring a safe healthy workplace for all employees It therefore replaces old and obsolete equipment with new technologically more modern machinery and updates safety plans as new information gradually becomes availableAs well as an internal supervisor Florim USA has also appointed a health and safety committee which constantly monitors the plans effectiveness and makes any changes requiredThere are currently 20 plant employees who hold CPRfirst aid qualifications They occupy a variety of positions and work different shifts within the plant and have volunteered to attend training courses sponsored by the company for the award of these qualifications
Training
In 2016 every Florim USA employee attended an average of about 25 hours of training The training provided covered the operating procedures for the new equipment the main safety plans and the procedures for use of existing equipment for new employeesAll new staff undergo specific training for their department focusing on the safety-related aspects of the department concerned as well as more generalized safety training
Some of these themes includebull safe correct use of forklift trucksbull training on work in confined spacesbull shutdownwarning procedures and safe electrical practicesbull safe lifting procedures
2016 Sustainability Report 41
Florim USA ndash (Clarksville Tennessee)
For employees wishing to continue their education Florim USA offers assistance through the Educational Assistance Program It provides aid with the cost of education and textbooks and is available for any employee wishing to study for a technical qualification a diploma or a degreeThe plant staff training and education plan also includes various training schemes at Florim Italy where employees are instructed in the use of new equipment before it is installed at the American plantThroughout 2016 Florim USA will continue to provide a free e-learning course on its website for architects engineers and contractors (AEC) to improve their knowledge of sustainable porcelain stoneware tiles
Employee welfare activities
Florim USA employee picnic - In 2016 the company once again held its annual picnic for employees offering them a wide variety of foods games activities and live shows in an event which provided an unforgettable days enjoyment Within the event participants received prizes in the form of vouchers and gifts
Employee anniversary dinner - 2016 again saw the usual dinner to honour Florim USA employees with 5 10 15 20 or more years of service A special evening event was held in the presence of the Chairman and the other managers to celebrate the loyalty and hard work these employees have contributed during their careers with the firm
2016 Sustainability Report42
Local Community
During 2016 Florim USA continued to provide its support to a number of projects in its local areaSome of the main projects include
Scholarships - As part of its work to support the local community Florim has an established scheme which awards scholarships to deserving students at the Austin Peay State University in memory of Florim Group founder Giovanni Lucchese In December 2016 a delegation of Florim representatives attended a scholarship presentation lunch at the Austin Peay State University hosted by the President of the University
Montgomery County Green Certification Program - Florim USA staff actively participate in the Montgomery County Green Certification Program which aims to help companies learn and implement best practices with regard to safeguarding the environment and environmental resources
Donations - In 2016 the company again made a large number of donationsbull book collection for the Austin Peay State University Employees made a generous donation of used books in good condition for children and young people of the APSU in the hope of further promoting the education of future generationsbull to Community Cares the national organization that promotes the acceptance and social inclusion of individuals with Downs Syndromebull to the Aspire Clarksville Foundation a 501(c)(3) charitable foundation whose mission is to continuously improve the economy and the livability (quality of life) of the community by attracting significant capital investment and expansion by businesses and corporations thereby creating better opportunities and higher paying jobs for residentsbull to the Alzheimerrsquos Association a non-profit voluntary organization dedicated to the care and support of Alzheimers Disease sufferers and research into the condition Its aim is to eliminate the disease through the advancement of research to provide and enhance care and support for all affected and to reduce the risk of dementia through the promotion of brain health
Other activities - Every year Florim USA participates in the United Way Drive initiative to support local non-profit organizations which provide economic assistance and psychological support to persons in difficulty
Florim USA provides regular support to the Salvation Army by collecting canned foods for persons in needIn 2016 the company again organised a canned food collection for Manna Cafeacute in Clarksville TN Manna Cafeacute is a local non-profit organization based in Middle Tennessee with the primary mission of meeting peoples fundamental need for food before encouraging them to permanently change their lives for the better More than 15 of the population in Montgomery County are affected by food insecurity (about 28000 people) The percentage of children affected is about 215 a third of whom are excluded by income from federal programs such as free school mealsFinally donations were made tobull American Lung Association the leading organization working to save lives by improving lung health and preventing lung disease through research and educationbull Cheer for a Cure an organization that gives money directly to afflicting families who have a loved one suffering from cancer and need assistance to alleviate the added financial stressbull Habitat for Humanity Since 1992 Habitat for Humanity in Montgomery County Tennessee has worked with 93 low-income families with more than 210 children to revitalise various parts of Clarksville-Montgomery County by building new homes
2016 Sustainability Report 43
Quality SystemFlorim USA works under a Quality System certified to UNI EN ISO 9001 standards The following are some of the figures in brief
Objective Indicator 2012 2013 2014 2015 2016
Optimisation of control of the production process
Percentage of First Grade Product ()
932 917 940 949 9510
Quality rate () 883 857 893 906 909
Scrap rate () 56 65 48 45 45
KeyPercentage of first grade product ratio between square feet of first grade material and total square feet transferred to stockQuality rate ratio between square feet of first grade material transferred to stock and square feet pressedScrap rate ratio between square feet pressed and square feet of product actually transferred to stock
Other ActivitiesFlorim USA and trade shows
In 2016 Florim USA participated at a number of shows and events including Coverings the AIA Tennessee Convention Hardscape North America Total Solutions Plus Neocon International Pool - Spa and Patio Expo These events targeted at the various categories of industry professionals such as dealers and designers gave Florim USA the opportunity to present its new range of indoor and outdoor products
Design Center
In December 2015 Florim USA opened a design center showroom in Nashville (TN) in a strategic location close to the airport and the city center With a spacious area to host individual CEU presentations and workshops this design center has the potential to be a major resource for local architects In 2016 it was also awarded the ldquoOutstanding Boothrdquo booth prize at the 33rd edition of the Annual Home Decorating and Remodeling Show The location is the ideal place for sharing ideas finding inspiration and putting professionals and architects in touch with each other
Florim Nashville Design Center
2016 Sustainability Report44
GRI International Sustainability Indicators SDGsThe information below illustrates the correspondence between the Florim (Italian companies) 2016 Sustainability Report the GRI-G4 guidelines and the icons of the Sustainable Development Goals (SDGs) definitively adopted by the United NationsA description of the SDGs is available at wwwglobalcompactnetworkorg
GRI indicators
Description Page Reference to SDGs
1 Strategy and Analysis
G4-1 Statement from the most senior decision-maker of the organization 5
2 Organization profile
G4-3 Name of the organization 2
G4-4 Primary brands products andor services 9
G4-5 Location of the organizations headquarters 9
G4-6 Number and names of the countries where the organization operates 9
G4-7 Nature of ownership and legal form 14
G4-8 Markets served 9
G4-9 Scale of the organization 8 8
G4-10 Significant changes regarding size structure or ownership 8
G4-11 Employees covered by National Collective Bargaining Agreement 27
G4-12 Describe the supply chain 16
G4-13Significant changes regarding the organizationrsquos size structure ownership or its supply chain
Reporting process
launched
G4-14 Precautionary principle 22
G4-15 List of external commitments in which the company is involved 22 32 33
G4-16 Associations or interest groups in which the company is involvedwwwflorimit gt
about us gt partnerships
3 Identified material aspects and boundaries
G4-18 Process used to define the report content 6
G4-19 Material aspects 16
G4-20 Boundaries of each material aspect 6
G4-21 Boundaries of each material aspect outside the organizationPartial reporting
(pages 6 16)
G4-22 Explanation of the effect of any restatements of information provided in previous reports 6
G4-23Significant changes from previous reporting periods in the scope boundaries or measurement methods
6
3 Stakeholder engagement
G4-24 List of stakeholders 15
G4-25 Identification of stakeholders 15
G4-26 Stakeholder engagement 6 16
G4-27 Key topics and concerns that have been raised through stakeholder engagement 16
4 Boundary of the Report
G4-28 Reporting period 6
G4-29 Date of publication 2
G4-30 Reporting cycle 6
G4-31 Contacts and addresses for additional information 46
5 GRI Content Index
G4-32 Reporting option chosen 6 7
G4-33 External assurance of ReportThe Report is not
externally assured
2016 Sustainability Report 45
GRI indicators
Description Page Reference to SDGs
6 Governance
G4-34 Governance structure 14
7 Ethics and integrity
G4-56 Values principles standards and norms of behavior 13 16
Economic performance indicators
EC1 Direct economic value generated and distributed 19 25789
EC5 Wages 27 158
EC7 Development and impact of infrastructure investments and services supported 23 24 31 257911
Environmental performance indicators
G4-EN2 Percentage of materials used that are recycled input materials 17 22 23 812
G4-EN3 Energy consumption within the organization 24 781213
G4-EN6 Reduction of energy consumption 17 24 71213
G4-EN7 Reductions in energy requirements of products and servicesPartial reporting
(page 22)71213
G4-EN8 Total water withdrawal by source 17 23 6
G4-EN10 Percentage and total volume of water recycled and reused 17 21 23 612
G4-EN11 Biodiversity 23 615
G4-EN15 Total indirect greenhouse gas emissions by weight 25 3121315
G4-EN16 Total indirect greenhouse gas emissions by weight 25 3121315
G4-EN19 Reduction of greenhouse gas emissions 8 24 1315
G4-EN21 NOx SOx and other significant air emissions 25 31215
G4-EN22 Total water discharge by quality and destination 23 6
G4-EN23 Total weight of waste by type 17 22 3612
G4-EN27 Impact mitigation of environmental impacts of products and services 23 68121315
G4-EN29 Monetary value of significant fines 22 16
G4-EN30 Significant environmental impacts of transporting products and goodsmaterialsPartial reporting
(page 25)111213
Social performance indicators
G4-LA1 Total number and rates of new employee hires and employee turnoverPartial reporting
(pages 17 27)8
G4-LA6 Workplace injury ratesPartial reporting
(page 17)38
G4-LA9 Average hours of training per year per employee 28 48
G4-LA12Composition of governance bodies and breakdown of employees according to gender age group etc
27 58
G4-LA13 Ratio of basic salary and total remuneration of women to men 27 5810
Society
G4-SO1 Operations with local community engagement 12 31 16
G4-SO3 Operations assessed for risks related to corruptionPartial reporting
(page 13)
Product responsibility
G4-PR1 Assessment of health and safety impacts for improvement 23 32
G4-PR3 Type of information about products and services required by the procedures 32 12
G4-PR5 Proceedings relating to customer satisfaction including surveys conducted to measure it 33
G4-PR6 Sale of banned or disputed products 32
G4-PR8 Number of substantiated complaints regarding breaches of privacy 32 16
2016 Sustainability Report46
Your Assessment
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Click here to send us your feedback
To keep up to date with our business
Spazio CEDIT - interior (Milan)
wwwflorimiten
Florim Ceramiche
Florim4Architects
Florim_ceramiche
Florim Ceramiche spa
Florim Ceramiche
Florim Ceramiche
For any further information please feel free to contact our communications department comunicazioneflorimit
2016 Sustainability Report 47
Premio Lucchese - Florim Gallery (Fiorano Modenese - Modena Italy)
Intrapresaelig Guggenheim Collection - Massimo Bottura in Florim Gallery (Fiorano Modenese - Modena Italy)
Panathlon Christmas Gala - Florim Gallery (Fiorano Modenese - Modena Italy)
2016 Sustainability Report48
White Christmas Party - Florim Gallery (Fiorano Modenese - Modena Italy)
Cersaie - Mario Biondi in Florim Gallery (Fiorano Modenese - Modena Italy)
Dal buio alla luce - Social event at Florim Gallery (Fiorano Modenese - Modena Italy)
2016 Sustainability Report 49
Florim Gallery entrance (Fiorano Modenese - MO)
2016 Sustainability Report52
Florim Ceramiche spaVia Canaletto 24 - 41042 Fiorano Modenese (Modena Italy) - Tel +39 0536 840111 - wwwflorimit
2016 Sustainability Report20
Casa dolce casa ndash Argille 20 Collection
2016 Sustainability Report 21
Environmental ResponsibilityEffective environmental policy management energy saving and emissions reduction are amongst Florims strategic sustainability objectives
Our green projects in figures
2 highly-regarded process certifications
ISO 14001 (ENVIRONMENT)and ISO 50001 (ENERGY)
849873 MWh is the amount of electricity the
company succeeded in producing in-house during 2016
2 departments (marketing and communications)
engaged on digitizing advertising tools
8462 tons of CO2 NOT emitted
CO2
100 is the percentage of wastewater recycled
16000 msup2of photovoltaic panels covering
an area of 30000 msup2
75 is the percentage of the electricity consumed which is
produced in-house
4 latest-generation industrial kilns installed in
the last 3 years
4 different types of environmental product
certification
2 cogeneration plants to increase energy saving
and efficiency
1 laboratory for the development of contemporary design projects with a specific focus on the materials green
content
100is the percentage recycling of
industrial greenware waste in the production process
2016 Sustainability Report22
Certifications
System and process certifications
UNI EN ISO 14001TUumlV has awarded Florim the highly-regarded UNI EN ISO 14001 voluntary certification which confirms its compliance with a series of internally certified procedures intended to improve the internal environmental management system The decision to seek this certification springs from the desire to reconcile quality with efficiency and productivity while protecting the environment and community in which the company operates
UNI EN ISO 50001Thanks to a careful energy management policy and aided by the latest investments in the production area also intended to improve energy efficiency Florim was the worlds first ceramics manufacturer to obtain ISO 50001 certification of its Energy Management System
In addition to its environmental certifications Florim has also been awarded prestigious AEO (Authorized Economic Operator) status
Further to a lengthy and demanding audit process by the Customs Authorities in 2016 Florim was awarded AEO certification the first company in the Province of Modena to receive this major form of approval Authorised Economic Operator status guarantees the companys absolute compliance with customs and security requirements in its foreign trade
Environmental Management
Waste 2012 2013 2014 2015 2016
Total waste produced (t) 30228 21170 22300 30862 34423
Non-dangerous recyclable waste (such as paper and cardboard fired scraps plastic glass and wood) ()
989 982 985 991 989
Non-dangerous disposed-of waste (such as the waste picked up by the motor sweepers) ()
02 04 02 02 02
Dangerous recyclable waste (such as spent oil batteries and monitors) ()
00 01 01 01 00
Dangerous disposed-of waste (such as spent lime) () 01 13 12 07 09
Third-party waste recycled within the production process (t) () 4028 4190 1721 2570 5627
Besides recycling greenware waste from its own production cycle (not included in the table because the amount cannot be calculated) Florim also recycles third party waste
Florims operations have always been oriented towards optimization of impact on the local community and environment Thanks to the work of its research laboratories the support of all staff and the recent investment plans tangible results have been achieved The data provided below reveal that in spite of an increase in production of 8 compared to the previous year consumption remains low The companys commitment to environmental protection is all-inclusive and also comprises a focus on the district within which it operates One example is the total removal of all asbestos cement from the Fiorano Modenese plant and the creation of the new recycling station opened in 2015 and donated to the Local Authority as a public serviceAs in previous years during 2016 Florim was not fined for any breaches of environmental regulations or laws
Florim recycles and optimises within the production process all greenware scraps dust residues from filters and sludge from the process and rectification wastewater treatment system The waste produced is detailed in the table the significant differences between years are due mainly to the major demolition and subsequent reconstruction works undertaken at the Italian plants
Waste Management
2016 Sustainability Report 23
Water Resources
No environmental impact of wastewater discharges is specified since all the water from the production cycle is completely reused (100) All other effluents comply with legal requirements
The figure states the total cubic meters of water used per ton of finished product The water used in the Fiorano production process is drawn from private company-owned wells with water from the public main only used for non-industrial purposes The Mordano plant is supplied by an industrial water main Water use is measured by means of meter readings Four highly innovative dry rectifying plants have gone into production at Mordano since 2015 enabling the company to eliminate the physicalchemical treatment of the water used in the rectification process
WATER USE
2012
08
2013
08
2014
08
2015
07Total water consumption (msup3) finished product (t)
07
2016
All packaging used for Florim materials is made from recycled paper and parts of the coverings used to protect pallets of finished products consist of recycled plastic Whats more all the packaging used (boxes cardboard shrink wraps pallets etc) can be completely recycled by the end user The latest investments made include new eco-friendly packaging machines increasing the number of these machines installed to 15 These plants completely eliminate waste due to leftover inventory saving significant amounts of cardboard
Packaging and Coverings
As the materiality assessment states Florim has no significant impacts on the biodiversity of its local area since the company is located inside the Fiorano Modenese ceramics manufacturing district at least 5 Km from the nearest nature reserve at Salse di Nirano Florim takes special care over the choice of the raw materials used for its tile body mixes of which it is required to provide documentation guaranteeing compliance with the European Directives protecting wild birds (EU Dir 79409EEC) and habitats (EU Dir 9243EEC) and the United Nations Convention on the protection of biodiversity It has also introduced a software program - used at the 3 production plants (Italy and the USA) - for the management of data on the origin of raw materials such as quarry location distance from the factory recycled content declaration technical safety and radioactive content data sheets and the expiry of the quarrying permit issued by the government
Raw Materials and Biodiversity
2016 Sustainability Report24
Energy Management
There is no disputing that large amounts of energy are required to power the production processes of ceramic tile plants with consequent direct and indirect impacts on the local area and the environmentThe main indicator used to measure plants energy performance is the mean specific total energy consumption (TEJ) measured in GJt of product transferred to stock As the table below shows this figure is obtained by adding together heat consumption (NGJ) and electricity used (EEJ)
Parameter ndash Definition Unit of measurement
2012 2013 2014 2015 2016
NGJ Mean specific natural gas consumption in relation to the unit of weight of finished product transferred to stock
GJt 557 571 576 578 598
EEJ Mean specific electricity consumption in relation to the unit of weight of product transferred to stock
GJt 111 108 111 108 107
TEJ Mean total specific energy consumption in relation to the unit of weight of product transferred to stock
GJt 668 679 686 685 705
Self-generated electricity as a proportion of consumption
67 68 62 65 75
With two cogeneration plants (for the combined in-house production of heat and electricity) and 16000 msup2 of photovoltaic panels the company certainly sets a new benchmark for the entire ceramic tile industry 2016 saw the replacement of the Fiorano turbine set (the main component of the cogeneration plant) while the one in Mordano was kept in operation 247 factors which led to a 10 increase in in-house electricity production in relation to consumption To provide a clearer idea of the scale of the achievement the amount of electricity the company generated in-house in 2016 (849873 MWh) would cover the average annual consumption of about 37000 households (With consumption per household of 229 MWh - data from the latest ISTAT survey in 2012ndash calculated on the Italian average)
Photovoltaic Plant
kWp kWh produced kg of CO2 not emitted
270021 15937250 8462680
Good Practice
The head office organizations are also optimizing paper and energy consumption In addition to issuing and distributing the energy saving handbook for its offices the company is also trying to maximize savings on the raw material used and specifically the use of paper Internally the company only purchases reams of paper which carry environmental certification and the paper used in offices is collected separately for proper disposal Externally the company distributes a system of merchandising products made mainly from recycled paper and encourages the gradual digitization of its marketing tools as well as publishing all its catalogues in digital format on its Internet sites Florim offers its distributor companies an innovative digital touch screen tool with the pdf versions of the catalogues and other tools for the final consumerIn 2016 Florim decided to adopt a new payslip distribution procedure introducing an online processing system As well as providing employees with new functions and greater operating flexibility thanks to this system the company no longer prints out the monthly payslips saving paper ink and energy The scheme initially involving all office workers has the ambitious target of also including the staff of the Fiorano and Mordano plants
The 16000 square meter photovoltaic plant received recognition from GSE (Energy Management Services) as one of the most innovative installations of its type and from its commissioning (October 2011) up to December 2016 it produced the following results
2016 Sustainability Report 25
Atmospheric Emissions
The industrial facility emits greenhouse gases basically CO2 from the following main sourcesbull combustion from the burning of fossil fuels (such as natural gas)bull processes from the minerals in the raw materials any organic matter in the clays used and any organic additives in tile body mixes
In order to comply with Directive 200387EC (ETS - Emission Trading Scheme) Florim has been reporting and certifying its CO2 emissions since 2013
CO2 emissions 2013 2014 2015 2016
CO2 emissions (t) 102728 103462 111862 132960
CO2 emissions (t) Finished product (t) 033 033 033 035
Emissions from the production cycle 2013 2014 2015 2016
Particulate material (gmsup2 finished product) 223 130 098 118
Lead (gmsup2 finished product) 000 000 000 000
Fluorine (gmsup2 finished product) 014 018 013 012
The increase in CO2 is due mainly to the large increase in the square meters produced (+ 8) and the 247 use of the cogeneration plant However it should be noted that the cogeneration plant provided a 10 increase in in-house electricity generation with lower CO2 emissions than electricity purchased from the grid produced mainly using fossil fuels (source ISPRA Fattori di emissione atmosferica di CO2 e sviluppo delle fonti rinnovabili nel settore elettrico Rapporti [Atmospheric CO2 Emission Factors and Development of Renewables in the Electricity Sector Reports] 2122015)The ratio between CO2 emissions and tons of finished product produced increased because in 2016 the sale of spray-dried material to other companies rose compared to the previous year (emissions from this phase are included in the emissions count but there is no corresponding output of finished product)
In a change from previous years the new GRI-G4 guidelines also require reporting of nitrogen oxide and sulphur oxide emissions Nitrogen oxide (NOx) emissions are within the limits permitted under the integrated environmental authorisation Sulphur oxide (SOx) emissions are not reported here since this figure is not required by the IEA
Transport
The materiality study reveals that transport is a significant factor for both stakeholders and Florim itself The company is not able to measure the impact of transportation of finished product on the local area since all shipments are ex-works However Florim which has been introducing electric vehicles to replace its oldest most obsolete unleaded petrol forklifts for years now has further optimized the handling of materials thanks to the new highly-automated logistics hub created at the via Canaletto location In 2016 about 53 of the vehicles used on the companys premises were electric with no direct greenhouse gas emissions
2016 Sustainability Report26
CEDIT ndash Creative Composition
2016 Sustainability Report 27
Workforce Composition
In 2016 the workforce included 27 people with disabilities 6 women and 21 menBearing in mind the job descriptions arising from the specific industrial sector the breakdown between men and women is in line with the industry average Male office workers and executives earn an average of 10 more than women for jobs of equal responsibility Among blue-collar workers the difference is 7 The company had a total of 29 foreign employees 24 at Fiorano and 5 at Mordano
Manager Executive Office worker
2013 2014 2015 2016 2013 2014 2015 2016 2013 2014 2015 2016
Women 2 3 3 3 3 1 1 1 137 142 133 149
Men 18 21 20 18 21 24 25 28 127 132 128 132
Total 20 24 23 21 24 25 26 29 264 274 261 281
Office ancillary Blue-collar worker Total
2013 2014 2015 2016 2013 2014 2015 2016 2013 2014 2015 2016
Women 18 16 25 19 226 219 212 196 385 381 375 368
Men 64 68 79 64 376 358 356 377 607 603 607 619
Total 82 84 104 83 602 577 568 573 992 984 982 987
Social Responsibility
Employees amp Corporate welfare
Its employees are the heart and soul of Florim they provide its character and its DNA Since 2009 when the current major economic crisis began Florim has undertaken a number of income support programs for its workforce Below we summarise some of the ongoing programmes and others run in 2016bull Ending of the Income Support Program for the Mordano plantbull Agreement with Sassuolo Hospital under which Florim employees and their family members enjoy discounts and shorter waiting times for specialist examinations and outpatient diagnostic tests performed on a private basisbull Special agreements with local health facilitiesbull Tax advice at special rates bull Special terms for banking services with financial consultants on-sitebull Discounts on the purchase of Florim products for employees homesbull Free entry to the Peggy Guggenheim Collection in Venice for employees and concessions for family membersbull Free provision of water and mineral salts in the plants during the summerbull Distribution of fuel vouchers to employees for the Christmas holidays
Summer Play Schemes and Cregraveches
In 2016 the summer play schemes for the children of employees at Fiorano and Mordano were continued for the fifth year in succession Seven different centers across the area between Modena and Bologna hosted 85 children (twice the number of the previous year) the company paid the fee for two weeks attendanceWhats more since 2013 the company has negotiated special terms with local cregraveches which now offer a number of places for employeesrsquo children at a reduced fee
2016 Sustainability Report28
Human Resources Management Policies
In July 2015 on renewal of the in-house supplement to the national employment contract the Management introduced a new phase in its relations with the Trade Unions with the aim of continuing and improving the good relationships enjoyed for decadesThe new company contract applied for all employees at the Fiorano headquarters includes more facilitations for part-time working the willingness to allow flexitime where feasible and the commitment to invest in staff training in order to generate full benefits from intellectual capital The company and the trades unions agreed on a plan to improve efficiency fundamental for maintaining the current level of competitiveness by establishing improvement in Production Efficiency and EBITDA as criteria for the payment of the new Performance Bonus The individual Attendance Score is considered together with these parameters The 2016 Performance Bonus in its first year of application was 20 higher than that paid in 2015 In addition in response to employees requests the Company increased the number of approved canteens extending the choice available and also introduced weekly laundering of work clothing for all production workersWith regard to applications for severance pay advances the Company confirms its commitment to continuing the policy implemented so far
Training
Florim believes that in-house training plays a key role in the companyrsquos development and provides a tool for stimulating and fulfilling the potential of its human resourcesMore than 10600 training hours were provided in 2016 to 847 people with an average of more than 11 hours of training per employee New projects included a 6-month on-line English language course which attracted a large number of participants and two highly structured training courses for the sales division and the communication department A retraining program for workers at the Mordano plant was also completed it comprised 4 technical courses attended by 31 people for an average of 13 hours per person Another new entry for 2016 was an innovative procedure for acquiring information about training needs using an on-line questionnaire available to all employees as well as line managers specific recommendations The Master in Florim project is discussed in depth in the specific section
Health and Safety
Florim was the first Italian ceramics manufacturer to receive BS OHSAS 18001 (Occupational Health amp Safety Assessment Series) certification from TUumlV this international standard certifies the implementation of an internal management system oriented towards occupational health and safetyThis major award confirms the companys constant commitment to the well-being of its employees Every year in addition to engineering inspections and machinery maintenance a number of hours of safety training are organised to raise awareness among workers and supervisors Specifically in 2016 2849 hours were dedicated to safety training and a significant reduction in injury rates was recordedMoreover BLSD refresher courses are continuously held for the team of Florim employees trained in first-aid operations and the use of the defibrillators available on site
2012 2013 2014 2015 2016
Number of workplace injuries 63 62 74 56 43
2016 Sustainability Report 29
The Master in Florim organized for the fourth time in 2016 is a vocational training project which aims to bridge the gap between education (high school or university) and the world of work The program which is one of the companys Social Responsibility projects sets out to help young people to get to know the company through a well structured work experience plan It offers a distinctively northern European approach with a method which alternates classroom teaching with internships in the various areas of the company Participants new university or high school graduates specialising in various subjects all below 30 years of age are therefore able to gain hands-on experience of all Florim departments from RampD to the production process and product distribution for an all-inclusive vision The MASTER courses ambitious aim is to match the individual participants talents with the companys real needs At the end of each edition the company hires all or some of the selected candidates enabling it to acquire new skills new experiences and new energy
Master 40 in figures
20 young people taking part6 months of training13 external lecturers264 hours of classroom teaching392 hours of practical training4 company visits (Ferrari Tetrapak Cremonini and Ducati)50 days of work experience on rotation involving 15 departments1 month of project work
The projects prestige is enhanced by its economic context since Florim pays the young participants for the entire period and its aim is to deal with the thorny problem of youth unemployment The Master has won approval from various faculties at major Italian universities The project was also a winner in the Emilia-Romagna Regions 2016 awards for Corporate Social Responsibility projects run in the local community A prize in the ldquoBusiness and Educationrdquo category was assigned to the Master project which aims to give young people the skills required for sustainable development
Master in Florim
2016 Sustainability Report
Watch the videoof the 4th edition
2016 Sustainability Report30
Local Community amp Culture
This chapter describes a number of programs Florim runs for the local community in the area where it originated and where it has been working for more than 50 years
Politecnico di Milano
Since the 20052006 academic year Florim has been a partner sponsor of a large number of Postgraduate Courses run by POLIDesign the Politecnico di Milano consortium which organizes its Master Degree coursesAlso in association with POLIDesign since 2012 Florims Milan showroom has hosted several design events for architects and designers of every nationality
Aziende modenesi per la RSI
ldquoAziende Modenesi per la RSIrdquo an independent open inclusive association of companies in the Modena area which believe in the principles and values of Corporate Social Responsibility was established by public deed on 30 September 2014 with Florim as a founding member Florim hosts the associations member companies every year to discuss the various topics proposed
Premio Lucchese
The Premio Lucchese presented for the twenty-ninth time in 2016 was established in memory of Giovanni Lucchese and consists of scholarships awarded to students at the ldquoAlessandro Voltardquo Technical High School in Sassuolo who graduate with full marks The award ceremony held every year at the Florim Gallery in association with Societagrave Ceramica Italiana of Bologna includes a talk given by a leading personality on a topic of current interest to an audience of eager young listeners
Intrapresaelig Collezione Guggenheim
As befits a company that combines the values of its local community and historic and artistic heritage with a flair for research and innovation Florim recently launched a partnership with the Peggy Guggenheim Collection Since its foundation Florim has always had a unique ability to incorporate the true cultural significance of its industry in its business model and by this project once again confirms its commitment to promoting art by supporting a collection of extraordinary beauty
Fondazione Ing Giovanni Lucchese
More than thirty years after the untimely death of Giovanni Lucchese ndash founder of what was then Floor Gres currently Florim ndash in 2013 his family established a Foundation in his name which since then has funded organizations and associations that support families in need in the ceramics district The Foundation also supports a variety of projects such as the summer play scheme for employees children the Premio Lucchese and the Florim HealthampTraining Center described in more detail below
The main projects undertaken in 2016 include the funding of the purchase of 10 defibrillators for the Municipality of Fiorano and the contributions made to the purchase of paediatric ambulances for the local area and to support the Parish charitable organizations and social services in the district
Watch the Premio Lucchese video
The project run jointly by Florim and Sassuolo Hospital adopts a completely new model combining industrial culture and healthcare in an original way to benefit the local people and community thanks to the coming-together of a ceramic coverings manufacturer and the public-private joint venture Ospedale di Sassuolo Spa Florim HealthampTraining is the synthesis of this idea an experimental center which promotes local training for healthcare and other staff health education and information advanced medical simulation and research
The Center
On the main Florim site and opened on 16 April 2014 the Center is 550 square meters in area and contains a modular lecture theatre able to seat over 100 people and a number of classrooms for seminars and lessons At its heart is a state-of-the-art control room crammed with technology that operates dummies capable of reproducing human functions of all kinds Advanced simulation is a major aid to maintaining the skills of emergency healthcare workers with a particular focus on pediatric and neonatal resuscitation
Health meetings
Designed as a space for community use the Center also aims to become a place where all sections of the population - workers schoolchildren parents teachers volunteers and even just members of the public - can learn about preventive health care and acquire first aid skills After the distribution to Florim employees of a questionnaire surveying their training needs and preferences a Center Scientific Committee of Sassuolo Hospital medical personnel was appointed and drew up a plan of bi-monthly ldquoHealth meetingsrdquo All meetings are led by doctors with expertise in the various topics who answer the many questions from the audience at the end of their talks Between its opening and the end of December 2016 the Center hosted 13 meetings on a variety of topics attended by about 1000 people including employees their family members and the community at large
Healthcare discounts for Florim employees
The project also includes a major welfare program for all Florim employees and their family members entitling them to discounts and shorter waiting times for specialist examinations and outpatient diagnostic tests performed on a private basis
American Heart Association
The world-famous American Heart Association (AHA) is the oldest and most respected American voluntary organization dedicated to the fight against cardiovascular diseases and strokes In 2015 the AHA via the Simaid International Training Center named the Florim HealthampTraining Center as an Authorized Training Site for basic and advanced cardiopulmonary resuscitation
Florim HealthampTraining Center
2016 Sustainability Report
Watch the Health amp Training Center video
2016 Sustainability Report32
Product Responsibility
Here we summarize the concept of Made in Florim denoting a product that encapsulates the companys core values passion innovation a constant commitment to improvement and corporate social responsibility
Florim product certifications
CE Marking guarantees the user that the materials purchased meet the requirements of the relevant regulations and that the characteristics concerned are virtually unchanged for all production lots It is a declaration of conformity which protects the consumerrsquos safety The presence of the CE Marking on packaging guarantees that Florim products comply with the relevant regulatory requirements
Ecolabel (EC Regulation 662010) is a certification granted to products which comply with ecological and performance criteria set at a European level concerning raw material extraction supplier selection manufacturing processes packaging distribution use and disposal The certified Florim collections are Architech Ecotech Reverse Walks 10 by Floor Gres and Pietra del Nord under the Rex brand
Several ceramic tile collections bearing the Florim brands have earned certification from Bureau Veritas for their pre-consumer recycled material content These articles are therefore fully eco-compatible and can meet the environmental sustainability requirements imposed by many international certifications
Florim is a member of the US Green Building Council (USGBC) the most important association which promotes the reduction of buildings negative impact on the environment To allow the effective monitoring a projects level of sustainability the USGBC has developed a certification procedure for the development of sustainable buildings which assess and certifies the sustainability of a building in its entirety Florim materials are able to help to gain LEED points in a number of areas (data available on the Florim brand websites)
Florim has achieved the prestigious Greenguard certification for all its products Issued by the American body UL Environment this certification aims to reduce indoor pollution caused by interior design systems and materials UL Environment thus aims to protect health by improving air quality and reducing peoples exposure to chemicals and other pollutants Florim has also achieved Greenguard Gold Certification which imposes even stricter limits to confirm that a given product is suitable for use even in locations such as schools and health care facilities
The EPD or Environmental Product Declaration is a document which defines the environmental impacts arising from production In 2016 Florim participated in the study - certified by the German organization IBU - performed on the ceramics industry average data which aims to raise international awareness of the excellence of the environmental standards achieved
Beyond the standardsMade in Florim products are a guarantee of safety highly innovative content and eco-friendliness The people who produce them work in a safe place and in ethically sustainable conditions Due to their nature all Florim products are guaranteed free from pollutant emissions do not accumulate electrostatic charges are frostproof and completely inert and are undamaged by contact with flames The Groups Internet sites and collection catalogues contain the technical data sheets which detail the product information (slip-resistance breaking strain abrasion resistance etc) for every collection as well as its recycled material content with the relative certificates
During the period under consideration no banned products were placed on the market and the company was not found guilty of any breaches of the law with regard to data protection or its marketing and communication activities
EU Ecolabel nr IT2104
2016 Sustainability Report 33
Quality SystemThe current ISO 9001 standards define quality as the ability to satisfy explicit or implicit needs via a product or a service A Quality System implies constant improvement of company processes in order to realise products that always satisfy the customerrsquos needs Further to the 2016 audit Florim obtained the renewal of its UNI EN ISO 90012015 certification for the design manufacture and sale of all categories of ceramic tile
Objective Indicator 2012 2013 2014 2015 2016
Continual improvement of control of the production process
Percentage of First Grade Product ()
924 943 942 952 956
Quality rate () 883 905 903 905 909
Scrap rate () 44 41 42 42 49
Productivity (sq mhour) 186 188 186 190 200
Improvements in sales performance and customer satisfaction
Innovation rate () 330 296 367 455 364
Coverage () 795 714 814 813 816
Total portfolio shippable within one month ()
911 837 888 893 897
Optimization of range and stocks
Obsolete stock () 172 126 165 120 69
Stock turnover rate () 13 15 16 15 16
Gradual elimination of disputes complaints and claims concerning service
Square meters affected by complaints ()
17 12 08 12 09
Complaints by number of order items ()
10 11 11 10 10
Gradual improvement in staff skill levels
Employee turnover () 15 23 04 04 12
KeyPercentage of first grade product percentage ratio between the square meters of first grade products and the total square meters transferred to stockQuality rate percentage ratio between the square meters of first grade product transferred to stock and the square meters leaving the pressesScrap rate percentage difference between square meters of material leaving the presses and square meters of product actually transferred to stockProductivity ratio between the square meters transferred to stock and the total hours worked in the plantInnovation rate ratio between square meters sold belonging to series designed in the last three years and total square meters sold Florim uses this indicator to assess the effectiveness of its design process in terms of salesCoverage percentage ratio between square meters available for immediate shipment and the square meters on orderTotal portfolio of orders shippable within one month percentage ratio between the square meters which can be shipped in 30 days and the square meters on orderObsolete stock percentage ratio between the square meters of substandard discontinued produce and the total square meters in stock Stock turnover rate ratio between the square meters sold and the square meters in stockSquare meters affected by complaints percentage ratio between the square meters affected by complaints and the square meters soldComplaints by number of order items percentage ratio between the number of complaints and the number of items orderedEmployee turnover percentage ratio between the number of employees leaving the company and being replaced and the workforce at the start of the year
2016 Sustainability Report34
Casamood - Neutra 60 Collection
2016 Sustainability Report 35
OUR COMMITMENTS
The promises we keptIn our last Sustainability Report we committed to achieving a large number of objectives the following are the outcomes we attained
Relaunch of the ldquoCEDIT ndash Ceramiche drsquoItaliardquo brand OBJECTIVE ACHIEVED
Launch of the FLORIM stone brand OBJECTIVE ACHIEVED
Installation of a new latest-generation kiln at the Mordano plant OBJECTIVE ACHIEVED
Transfer of the Moscow showroom to new premises SCHEDULED FOR 2017
Creation of a new gatehouse at the Mordano plantOBJECTIVE POSTPONED TO GIVE PRIORITY TO THE CONSTRUCTION OF THE NEW FACTORY
Introduction of ERP system at Florim USA OBJECTIVE ACHIEVED
Installation of a new spray dryer and raw material handling system at Florim USA
OBJECTIVE ACHIEVED
Economic Responsibility
Renewal of certification of the Florim environmental and energy management system
OBJECTIVE ACHIEVED
Award of new certifications for collections manufactured with a high recycled material content
OBJECTIVE ACHIEVED
Continuation of work to reduce environmental impacts at Mordano especially with the reduction of energy costs
OBJECTIVE ACHIEVED
Continuation of the work to remove asbestos cement roofing materials at the Mordano plant
OBJECTIVE ACHIEVED
Expansion of the system which conveys rainwater to the treatment plant OBJECTIVE ACHIEVED
Reduction of the noise emissions of the air filtering systems OBJECTIVE ACHIEVED
Increase of recycling targets through constant awareness-raising amongst all staff and optimisation of recycling facilities
OBJECTIVE ACHIEVED
Continuation of replacement of the diesel forklift trucks for use on outdoor yards with electric vehicles
OBJECTIVE ACHIEVED
Environmental Responsibility
Running of fourth edition of Master Florim course with new procedures OBJECTIVE ACHIEVED
Creation of an internal refreshment area for the Fiorano office staff OBJECTIVE ACHIEVED
Improvement of corporate welfare through the activation of new free services and discounts tailored to employees needs
OBJECTIVE ACHIEVED
Continuation of the health meetings for the local community in association with Ospedale di Sassuolo Spa
OBJECTIVE ACHIEVED
Organization of new community events at Florim Gallery OBJECTIVE ACHIEVED
Organization of Florim Family Day 2016 A PARTY WAS ORGANISED FOR EMPLOYEES
Social Responsibility
2016 Sustainability Report36
The targets we set for ourselvesWe aim to achieve the following objectives in 2017
Economic Responsibility
Construction of a new factory at Mordano to produce large slabs
Launch of the project to unite the Florim spa sales organizations
Total restyling of the corporate and brand Internet sites
Launch of the HUB project - Intranet CRM Marketing Automation
New plants at Florim USA a press two sorting lines a polishing and rectifying line
New working spaces and cloakrooms for technical staff at the American plant
Environmental Responsibility
Purchase of a new cogenerator for the Mordano plant
Introduction of a new rainwater collection system at Fiorano
Land reclamation project involving covering of the Rio Spezzano stream at Fiorano
Implementation of new software for continual monitoring of energy impacts at Fiorano
Modernisation of the compressor room to improve energy impacts at Mordano
Increase of recycling targets through constant awareness-raising amongst all staff and optimisation of recycling facilities
Continuation of replacement of the diesel forklift trucks for use on outdoor yards with electric vehicles
Social Responsibility
Improvement of corporate welfare through the activation of new free services and discounts tailored to employees needs
Continuation of the health meetings for the local community in association with Ospedale di Sassuolo Spa
Organization of new community events at Florim Gallery
Organization of a new event for Florim spa employees
New offices for hospitality and events staff at Fiorano
2016 Sustainability Report 37
FLORIM USA
Profile and Economic ResponsibilityFlorim USA with registered office at Clarksville - Tennessee - and its subsidiary Florim Solution Inc have been part of the Florim Group since 2000 The Florim USA manufacturing plant one of the largest most technologically advanced in the United States produces porcelain stoneware tiles for the residential market and undertakes commercial projects in North America During the last few years Florim USA has implemented a growth and process optimization strategy which has generated significant technological progress with more innovations planned for the future The strategy adopted will put Florim USA at the worldwide state of the art in porcelain stoneware tile manufacture
In 2016 of the 18 million USD invested 147 was allocated for installation of a latest-generation raw material handling system and a large spray-dryer with an innovative sorting system Improvements were made to other parts of the process to increase their efficiency leading to a further reduction in emissions and scrap rates Additional investments are planned during 2017 to continue this dual trend of rising production with mitigation of environmental impact
The new Florim Flagship Store in New York (152 Madison Avenue 32nd Street)
2016 Sustainability Report38
Environmental ResponsibilityFlorim USA implements the same environmental policy as Florim and is committed to achieving the following objectives
bull reduction of the energy used in the production processbull improvement of the waste management process with a focus on recovery and reusebull introduction of new more eco-efficient technologiesbull adoption of integrated management systems
Florim USA has been pursuing a strategy of careful management of its operations and environmental impact for a number of years Here we summarise the main actions taken and the results achieved in 2016
bull installation of a latest-generation spray-dryer in 2016bull installation of an innovative raw material handling system in 2016bull 100 recycling of wastewater within the processbull optimisation of the management of water bottles with elimination of about 34200 of them per annumbull reuse of almost all production scrap (+99)bull 157000 kg of cardboard recycled in 2016bull award of two different types of product certificationbull 9300 kg of plastic recycledbull recycling of 17 complete trucks of pallets
Environmental Projects and Awards
Florim USA has received Clarksville Montgomery County Green Certification (CMCGC) CMCGC is a program designed to help companies learn and implement best practices in the area of environmental stewardship to sustain the local communityrsquos resources through a series of free workshops taught by local environmental specialists Since 2014 Florim has allocated some of its Environment Managers time for the running of these workshopsFlorim USA earned this green company certification thanks to a large number of projects first and foremost the one which eliminated the use of disposable water bottles replaced with individual reusable bottles provided by the company and a series of fill-up stations About 34200 bottles are removed from the waste cycle every year
During the latest phase of its plant optimization Florim USA has implemented a thorough construction material reuse policy In the various stages of demolition of the old plants including the old storage silos the concrete debris was recovered and reused in other construction worksThis project alone generated 11500 tons of recycled aggregate as well as several hundred tonnes of metal sold to a recycling firm
Environmental management system and eco-compatible products
Florim USArsquos products help builders and designers to meet the requirements for sustainable buildings as defined by the United States Green Building Council (USGBC) through the LEED Green Building Rating System This protocol evaluates and certifies the environmental sustainability of a building as a unit from its design to its day to day management To gain LEED credits many of the Florim USA product lines contain a significant percentage of recycled material (40 or more)This feature contributes to an increase in the LEED score in the projects where these products are installed In 2014 Florim USA together with a large number of other US tile manufacturers and the Tile Council of North America drew up a type III environmental product declaration (EPD) certified under the ISO 14025 standard This ceramic tile life-cycle analysis enables Florim USA products to gain LEED points under the new LEED v4 protocol
2016 Sustainability Report 39
Water use (gallonsper million square feetof finished tiles)
208137 216246 204962 195280 194268
Energy use
2012 2013 2014 2015 2016
Cubic feet of natural gas per million square feet of finished tiles 9343383 9149721 8331170 8390503 8380000
kWh per million square feet of finished tiles 510972 491171 450594 465976 490300
Emissions
Particulate material lt 21024 tonnes per annum
SO2 (sulphur dioxide) lt 1674 tonnes per annum
VOC (volatile organic compounds) lt 1245 tonnes per annum
NOx (oxides of nitrogen) lt 1501 tonnes per annum
Environmental performance indicators ndash summary
The following are the main environmental indicators related to the impact and performance of Florim USA during 2016
Pre-consumer recycled material
Its internal material recycling processes enable the company to minimise its environmental impact since most of the material which would otherwise be sent to landfills or other waste treatment centers is reusedbull Wastewater is entirely recycled within the production process without any discharge into the municipal drainsbull The material in the collection bags from the tile body and glaze preparation areas the press and glaze application is entirely recycled within the processbull All scrap fired tiles are entirely recycled within the processbull 157000 kg of cardboard was sold to an external recycled material dealerbull 17 trucks of unusable wooden pallets were sold to a pallet regeneration companybull About 9300 kg of waste shrink-wrap plastic film was recovered and recycled
Post-consumer recycled material
About 82000 kg of glass was removed from the flow of waste destined for the local landfill and recycled within the process Florim USA has signed an agreement with the local landfill for consignment of all the glass it handles which is collected and set aside for recycling
Water use disposal and reuse
The water used during the production process is recycled continually therefore no water is discharged into the municipal drains
The 2016 emissions figures are in line with those for previous years well below the standards laid down
Water use 2012 2013 2014 2015 2016
Water use (gallons per million square feet of finished tiles) 216246 204962 195280 194268 203928
2016 Sustainability Report40
Social Responsibility
Employees
The Florim USA workforce comprises 348 staff employed at the production site the Clarksville and Nashville outlet stores and the Florim Solution offices Of the 348 employees 273 are blue-collar workers and 75 office staff 5 employees are Italians on secondment to the United States Florim USA offers a number of benefits to full time employeesbull health and dental care insurancebull Vision insurancebull life insurance for employees and optionally for family membersbull temporary and permanent disability supportbull employee pension plan
2012 2013 2014 2015 2016
Workplace injuries 50 41 22 29 27
The Employee Assistance Program (EAP) also offers support to employees and their families in the event of psychological difficulty or other problems that can have a negative impact on their quality of life Florim USA supports all the costs of the program
Equal opportunities
Florim USA provides equal opportunities in all employment practices to all qualified employees and applicants regardless of race colour religion gender national origin age disability or membership of the armed forces or any other category protected by federal state or local laws
Health and safety
FLORIM USA is committed to ensuring a safe healthy workplace for all employees It therefore replaces old and obsolete equipment with new technologically more modern machinery and updates safety plans as new information gradually becomes availableAs well as an internal supervisor Florim USA has also appointed a health and safety committee which constantly monitors the plans effectiveness and makes any changes requiredThere are currently 20 plant employees who hold CPRfirst aid qualifications They occupy a variety of positions and work different shifts within the plant and have volunteered to attend training courses sponsored by the company for the award of these qualifications
Training
In 2016 every Florim USA employee attended an average of about 25 hours of training The training provided covered the operating procedures for the new equipment the main safety plans and the procedures for use of existing equipment for new employeesAll new staff undergo specific training for their department focusing on the safety-related aspects of the department concerned as well as more generalized safety training
Some of these themes includebull safe correct use of forklift trucksbull training on work in confined spacesbull shutdownwarning procedures and safe electrical practicesbull safe lifting procedures
2016 Sustainability Report 41
Florim USA ndash (Clarksville Tennessee)
For employees wishing to continue their education Florim USA offers assistance through the Educational Assistance Program It provides aid with the cost of education and textbooks and is available for any employee wishing to study for a technical qualification a diploma or a degreeThe plant staff training and education plan also includes various training schemes at Florim Italy where employees are instructed in the use of new equipment before it is installed at the American plantThroughout 2016 Florim USA will continue to provide a free e-learning course on its website for architects engineers and contractors (AEC) to improve their knowledge of sustainable porcelain stoneware tiles
Employee welfare activities
Florim USA employee picnic - In 2016 the company once again held its annual picnic for employees offering them a wide variety of foods games activities and live shows in an event which provided an unforgettable days enjoyment Within the event participants received prizes in the form of vouchers and gifts
Employee anniversary dinner - 2016 again saw the usual dinner to honour Florim USA employees with 5 10 15 20 or more years of service A special evening event was held in the presence of the Chairman and the other managers to celebrate the loyalty and hard work these employees have contributed during their careers with the firm
2016 Sustainability Report42
Local Community
During 2016 Florim USA continued to provide its support to a number of projects in its local areaSome of the main projects include
Scholarships - As part of its work to support the local community Florim has an established scheme which awards scholarships to deserving students at the Austin Peay State University in memory of Florim Group founder Giovanni Lucchese In December 2016 a delegation of Florim representatives attended a scholarship presentation lunch at the Austin Peay State University hosted by the President of the University
Montgomery County Green Certification Program - Florim USA staff actively participate in the Montgomery County Green Certification Program which aims to help companies learn and implement best practices with regard to safeguarding the environment and environmental resources
Donations - In 2016 the company again made a large number of donationsbull book collection for the Austin Peay State University Employees made a generous donation of used books in good condition for children and young people of the APSU in the hope of further promoting the education of future generationsbull to Community Cares the national organization that promotes the acceptance and social inclusion of individuals with Downs Syndromebull to the Aspire Clarksville Foundation a 501(c)(3) charitable foundation whose mission is to continuously improve the economy and the livability (quality of life) of the community by attracting significant capital investment and expansion by businesses and corporations thereby creating better opportunities and higher paying jobs for residentsbull to the Alzheimerrsquos Association a non-profit voluntary organization dedicated to the care and support of Alzheimers Disease sufferers and research into the condition Its aim is to eliminate the disease through the advancement of research to provide and enhance care and support for all affected and to reduce the risk of dementia through the promotion of brain health
Other activities - Every year Florim USA participates in the United Way Drive initiative to support local non-profit organizations which provide economic assistance and psychological support to persons in difficulty
Florim USA provides regular support to the Salvation Army by collecting canned foods for persons in needIn 2016 the company again organised a canned food collection for Manna Cafeacute in Clarksville TN Manna Cafeacute is a local non-profit organization based in Middle Tennessee with the primary mission of meeting peoples fundamental need for food before encouraging them to permanently change their lives for the better More than 15 of the population in Montgomery County are affected by food insecurity (about 28000 people) The percentage of children affected is about 215 a third of whom are excluded by income from federal programs such as free school mealsFinally donations were made tobull American Lung Association the leading organization working to save lives by improving lung health and preventing lung disease through research and educationbull Cheer for a Cure an organization that gives money directly to afflicting families who have a loved one suffering from cancer and need assistance to alleviate the added financial stressbull Habitat for Humanity Since 1992 Habitat for Humanity in Montgomery County Tennessee has worked with 93 low-income families with more than 210 children to revitalise various parts of Clarksville-Montgomery County by building new homes
2016 Sustainability Report 43
Quality SystemFlorim USA works under a Quality System certified to UNI EN ISO 9001 standards The following are some of the figures in brief
Objective Indicator 2012 2013 2014 2015 2016
Optimisation of control of the production process
Percentage of First Grade Product ()
932 917 940 949 9510
Quality rate () 883 857 893 906 909
Scrap rate () 56 65 48 45 45
KeyPercentage of first grade product ratio between square feet of first grade material and total square feet transferred to stockQuality rate ratio between square feet of first grade material transferred to stock and square feet pressedScrap rate ratio between square feet pressed and square feet of product actually transferred to stock
Other ActivitiesFlorim USA and trade shows
In 2016 Florim USA participated at a number of shows and events including Coverings the AIA Tennessee Convention Hardscape North America Total Solutions Plus Neocon International Pool - Spa and Patio Expo These events targeted at the various categories of industry professionals such as dealers and designers gave Florim USA the opportunity to present its new range of indoor and outdoor products
Design Center
In December 2015 Florim USA opened a design center showroom in Nashville (TN) in a strategic location close to the airport and the city center With a spacious area to host individual CEU presentations and workshops this design center has the potential to be a major resource for local architects In 2016 it was also awarded the ldquoOutstanding Boothrdquo booth prize at the 33rd edition of the Annual Home Decorating and Remodeling Show The location is the ideal place for sharing ideas finding inspiration and putting professionals and architects in touch with each other
Florim Nashville Design Center
2016 Sustainability Report44
GRI International Sustainability Indicators SDGsThe information below illustrates the correspondence between the Florim (Italian companies) 2016 Sustainability Report the GRI-G4 guidelines and the icons of the Sustainable Development Goals (SDGs) definitively adopted by the United NationsA description of the SDGs is available at wwwglobalcompactnetworkorg
GRI indicators
Description Page Reference to SDGs
1 Strategy and Analysis
G4-1 Statement from the most senior decision-maker of the organization 5
2 Organization profile
G4-3 Name of the organization 2
G4-4 Primary brands products andor services 9
G4-5 Location of the organizations headquarters 9
G4-6 Number and names of the countries where the organization operates 9
G4-7 Nature of ownership and legal form 14
G4-8 Markets served 9
G4-9 Scale of the organization 8 8
G4-10 Significant changes regarding size structure or ownership 8
G4-11 Employees covered by National Collective Bargaining Agreement 27
G4-12 Describe the supply chain 16
G4-13Significant changes regarding the organizationrsquos size structure ownership or its supply chain
Reporting process
launched
G4-14 Precautionary principle 22
G4-15 List of external commitments in which the company is involved 22 32 33
G4-16 Associations or interest groups in which the company is involvedwwwflorimit gt
about us gt partnerships
3 Identified material aspects and boundaries
G4-18 Process used to define the report content 6
G4-19 Material aspects 16
G4-20 Boundaries of each material aspect 6
G4-21 Boundaries of each material aspect outside the organizationPartial reporting
(pages 6 16)
G4-22 Explanation of the effect of any restatements of information provided in previous reports 6
G4-23Significant changes from previous reporting periods in the scope boundaries or measurement methods
6
3 Stakeholder engagement
G4-24 List of stakeholders 15
G4-25 Identification of stakeholders 15
G4-26 Stakeholder engagement 6 16
G4-27 Key topics and concerns that have been raised through stakeholder engagement 16
4 Boundary of the Report
G4-28 Reporting period 6
G4-29 Date of publication 2
G4-30 Reporting cycle 6
G4-31 Contacts and addresses for additional information 46
5 GRI Content Index
G4-32 Reporting option chosen 6 7
G4-33 External assurance of ReportThe Report is not
externally assured
2016 Sustainability Report 45
GRI indicators
Description Page Reference to SDGs
6 Governance
G4-34 Governance structure 14
7 Ethics and integrity
G4-56 Values principles standards and norms of behavior 13 16
Economic performance indicators
EC1 Direct economic value generated and distributed 19 25789
EC5 Wages 27 158
EC7 Development and impact of infrastructure investments and services supported 23 24 31 257911
Environmental performance indicators
G4-EN2 Percentage of materials used that are recycled input materials 17 22 23 812
G4-EN3 Energy consumption within the organization 24 781213
G4-EN6 Reduction of energy consumption 17 24 71213
G4-EN7 Reductions in energy requirements of products and servicesPartial reporting
(page 22)71213
G4-EN8 Total water withdrawal by source 17 23 6
G4-EN10 Percentage and total volume of water recycled and reused 17 21 23 612
G4-EN11 Biodiversity 23 615
G4-EN15 Total indirect greenhouse gas emissions by weight 25 3121315
G4-EN16 Total indirect greenhouse gas emissions by weight 25 3121315
G4-EN19 Reduction of greenhouse gas emissions 8 24 1315
G4-EN21 NOx SOx and other significant air emissions 25 31215
G4-EN22 Total water discharge by quality and destination 23 6
G4-EN23 Total weight of waste by type 17 22 3612
G4-EN27 Impact mitigation of environmental impacts of products and services 23 68121315
G4-EN29 Monetary value of significant fines 22 16
G4-EN30 Significant environmental impacts of transporting products and goodsmaterialsPartial reporting
(page 25)111213
Social performance indicators
G4-LA1 Total number and rates of new employee hires and employee turnoverPartial reporting
(pages 17 27)8
G4-LA6 Workplace injury ratesPartial reporting
(page 17)38
G4-LA9 Average hours of training per year per employee 28 48
G4-LA12Composition of governance bodies and breakdown of employees according to gender age group etc
27 58
G4-LA13 Ratio of basic salary and total remuneration of women to men 27 5810
Society
G4-SO1 Operations with local community engagement 12 31 16
G4-SO3 Operations assessed for risks related to corruptionPartial reporting
(page 13)
Product responsibility
G4-PR1 Assessment of health and safety impacts for improvement 23 32
G4-PR3 Type of information about products and services required by the procedures 32 12
G4-PR5 Proceedings relating to customer satisfaction including surveys conducted to measure it 33
G4-PR6 Sale of banned or disputed products 32
G4-PR8 Number of substantiated complaints regarding breaches of privacy 32 16
2016 Sustainability Report46
Your Assessment
You are kindly requested to take a few minutes of your time to give us your assessment and any suggestions to enable us to improve future editions of our Sustainability Report
Click here to send us your feedback
To keep up to date with our business
Spazio CEDIT - interior (Milan)
wwwflorimiten
Florim Ceramiche
Florim4Architects
Florim_ceramiche
Florim Ceramiche spa
Florim Ceramiche
Florim Ceramiche
For any further information please feel free to contact our communications department comunicazioneflorimit
2016 Sustainability Report 47
Premio Lucchese - Florim Gallery (Fiorano Modenese - Modena Italy)
Intrapresaelig Guggenheim Collection - Massimo Bottura in Florim Gallery (Fiorano Modenese - Modena Italy)
Panathlon Christmas Gala - Florim Gallery (Fiorano Modenese - Modena Italy)
2016 Sustainability Report48
White Christmas Party - Florim Gallery (Fiorano Modenese - Modena Italy)
Cersaie - Mario Biondi in Florim Gallery (Fiorano Modenese - Modena Italy)
Dal buio alla luce - Social event at Florim Gallery (Fiorano Modenese - Modena Italy)
2016 Sustainability Report 49
Florim Gallery entrance (Fiorano Modenese - MO)
2016 Sustainability Report52
Florim Ceramiche spaVia Canaletto 24 - 41042 Fiorano Modenese (Modena Italy) - Tel +39 0536 840111 - wwwflorimit
2016 Sustainability Report 21
Environmental ResponsibilityEffective environmental policy management energy saving and emissions reduction are amongst Florims strategic sustainability objectives
Our green projects in figures
2 highly-regarded process certifications
ISO 14001 (ENVIRONMENT)and ISO 50001 (ENERGY)
849873 MWh is the amount of electricity the
company succeeded in producing in-house during 2016
2 departments (marketing and communications)
engaged on digitizing advertising tools
8462 tons of CO2 NOT emitted
CO2
100 is the percentage of wastewater recycled
16000 msup2of photovoltaic panels covering
an area of 30000 msup2
75 is the percentage of the electricity consumed which is
produced in-house
4 latest-generation industrial kilns installed in
the last 3 years
4 different types of environmental product
certification
2 cogeneration plants to increase energy saving
and efficiency
1 laboratory for the development of contemporary design projects with a specific focus on the materials green
content
100is the percentage recycling of
industrial greenware waste in the production process
2016 Sustainability Report22
Certifications
System and process certifications
UNI EN ISO 14001TUumlV has awarded Florim the highly-regarded UNI EN ISO 14001 voluntary certification which confirms its compliance with a series of internally certified procedures intended to improve the internal environmental management system The decision to seek this certification springs from the desire to reconcile quality with efficiency and productivity while protecting the environment and community in which the company operates
UNI EN ISO 50001Thanks to a careful energy management policy and aided by the latest investments in the production area also intended to improve energy efficiency Florim was the worlds first ceramics manufacturer to obtain ISO 50001 certification of its Energy Management System
In addition to its environmental certifications Florim has also been awarded prestigious AEO (Authorized Economic Operator) status
Further to a lengthy and demanding audit process by the Customs Authorities in 2016 Florim was awarded AEO certification the first company in the Province of Modena to receive this major form of approval Authorised Economic Operator status guarantees the companys absolute compliance with customs and security requirements in its foreign trade
Environmental Management
Waste 2012 2013 2014 2015 2016
Total waste produced (t) 30228 21170 22300 30862 34423
Non-dangerous recyclable waste (such as paper and cardboard fired scraps plastic glass and wood) ()
989 982 985 991 989
Non-dangerous disposed-of waste (such as the waste picked up by the motor sweepers) ()
02 04 02 02 02
Dangerous recyclable waste (such as spent oil batteries and monitors) ()
00 01 01 01 00
Dangerous disposed-of waste (such as spent lime) () 01 13 12 07 09
Third-party waste recycled within the production process (t) () 4028 4190 1721 2570 5627
Besides recycling greenware waste from its own production cycle (not included in the table because the amount cannot be calculated) Florim also recycles third party waste
Florims operations have always been oriented towards optimization of impact on the local community and environment Thanks to the work of its research laboratories the support of all staff and the recent investment plans tangible results have been achieved The data provided below reveal that in spite of an increase in production of 8 compared to the previous year consumption remains low The companys commitment to environmental protection is all-inclusive and also comprises a focus on the district within which it operates One example is the total removal of all asbestos cement from the Fiorano Modenese plant and the creation of the new recycling station opened in 2015 and donated to the Local Authority as a public serviceAs in previous years during 2016 Florim was not fined for any breaches of environmental regulations or laws
Florim recycles and optimises within the production process all greenware scraps dust residues from filters and sludge from the process and rectification wastewater treatment system The waste produced is detailed in the table the significant differences between years are due mainly to the major demolition and subsequent reconstruction works undertaken at the Italian plants
Waste Management
2016 Sustainability Report 23
Water Resources
No environmental impact of wastewater discharges is specified since all the water from the production cycle is completely reused (100) All other effluents comply with legal requirements
The figure states the total cubic meters of water used per ton of finished product The water used in the Fiorano production process is drawn from private company-owned wells with water from the public main only used for non-industrial purposes The Mordano plant is supplied by an industrial water main Water use is measured by means of meter readings Four highly innovative dry rectifying plants have gone into production at Mordano since 2015 enabling the company to eliminate the physicalchemical treatment of the water used in the rectification process
WATER USE
2012
08
2013
08
2014
08
2015
07Total water consumption (msup3) finished product (t)
07
2016
All packaging used for Florim materials is made from recycled paper and parts of the coverings used to protect pallets of finished products consist of recycled plastic Whats more all the packaging used (boxes cardboard shrink wraps pallets etc) can be completely recycled by the end user The latest investments made include new eco-friendly packaging machines increasing the number of these machines installed to 15 These plants completely eliminate waste due to leftover inventory saving significant amounts of cardboard
Packaging and Coverings
As the materiality assessment states Florim has no significant impacts on the biodiversity of its local area since the company is located inside the Fiorano Modenese ceramics manufacturing district at least 5 Km from the nearest nature reserve at Salse di Nirano Florim takes special care over the choice of the raw materials used for its tile body mixes of which it is required to provide documentation guaranteeing compliance with the European Directives protecting wild birds (EU Dir 79409EEC) and habitats (EU Dir 9243EEC) and the United Nations Convention on the protection of biodiversity It has also introduced a software program - used at the 3 production plants (Italy and the USA) - for the management of data on the origin of raw materials such as quarry location distance from the factory recycled content declaration technical safety and radioactive content data sheets and the expiry of the quarrying permit issued by the government
Raw Materials and Biodiversity
2016 Sustainability Report24
Energy Management
There is no disputing that large amounts of energy are required to power the production processes of ceramic tile plants with consequent direct and indirect impacts on the local area and the environmentThe main indicator used to measure plants energy performance is the mean specific total energy consumption (TEJ) measured in GJt of product transferred to stock As the table below shows this figure is obtained by adding together heat consumption (NGJ) and electricity used (EEJ)
Parameter ndash Definition Unit of measurement
2012 2013 2014 2015 2016
NGJ Mean specific natural gas consumption in relation to the unit of weight of finished product transferred to stock
GJt 557 571 576 578 598
EEJ Mean specific electricity consumption in relation to the unit of weight of product transferred to stock
GJt 111 108 111 108 107
TEJ Mean total specific energy consumption in relation to the unit of weight of product transferred to stock
GJt 668 679 686 685 705
Self-generated electricity as a proportion of consumption
67 68 62 65 75
With two cogeneration plants (for the combined in-house production of heat and electricity) and 16000 msup2 of photovoltaic panels the company certainly sets a new benchmark for the entire ceramic tile industry 2016 saw the replacement of the Fiorano turbine set (the main component of the cogeneration plant) while the one in Mordano was kept in operation 247 factors which led to a 10 increase in in-house electricity production in relation to consumption To provide a clearer idea of the scale of the achievement the amount of electricity the company generated in-house in 2016 (849873 MWh) would cover the average annual consumption of about 37000 households (With consumption per household of 229 MWh - data from the latest ISTAT survey in 2012ndash calculated on the Italian average)
Photovoltaic Plant
kWp kWh produced kg of CO2 not emitted
270021 15937250 8462680
Good Practice
The head office organizations are also optimizing paper and energy consumption In addition to issuing and distributing the energy saving handbook for its offices the company is also trying to maximize savings on the raw material used and specifically the use of paper Internally the company only purchases reams of paper which carry environmental certification and the paper used in offices is collected separately for proper disposal Externally the company distributes a system of merchandising products made mainly from recycled paper and encourages the gradual digitization of its marketing tools as well as publishing all its catalogues in digital format on its Internet sites Florim offers its distributor companies an innovative digital touch screen tool with the pdf versions of the catalogues and other tools for the final consumerIn 2016 Florim decided to adopt a new payslip distribution procedure introducing an online processing system As well as providing employees with new functions and greater operating flexibility thanks to this system the company no longer prints out the monthly payslips saving paper ink and energy The scheme initially involving all office workers has the ambitious target of also including the staff of the Fiorano and Mordano plants
The 16000 square meter photovoltaic plant received recognition from GSE (Energy Management Services) as one of the most innovative installations of its type and from its commissioning (October 2011) up to December 2016 it produced the following results
2016 Sustainability Report 25
Atmospheric Emissions
The industrial facility emits greenhouse gases basically CO2 from the following main sourcesbull combustion from the burning of fossil fuels (such as natural gas)bull processes from the minerals in the raw materials any organic matter in the clays used and any organic additives in tile body mixes
In order to comply with Directive 200387EC (ETS - Emission Trading Scheme) Florim has been reporting and certifying its CO2 emissions since 2013
CO2 emissions 2013 2014 2015 2016
CO2 emissions (t) 102728 103462 111862 132960
CO2 emissions (t) Finished product (t) 033 033 033 035
Emissions from the production cycle 2013 2014 2015 2016
Particulate material (gmsup2 finished product) 223 130 098 118
Lead (gmsup2 finished product) 000 000 000 000
Fluorine (gmsup2 finished product) 014 018 013 012
The increase in CO2 is due mainly to the large increase in the square meters produced (+ 8) and the 247 use of the cogeneration plant However it should be noted that the cogeneration plant provided a 10 increase in in-house electricity generation with lower CO2 emissions than electricity purchased from the grid produced mainly using fossil fuels (source ISPRA Fattori di emissione atmosferica di CO2 e sviluppo delle fonti rinnovabili nel settore elettrico Rapporti [Atmospheric CO2 Emission Factors and Development of Renewables in the Electricity Sector Reports] 2122015)The ratio between CO2 emissions and tons of finished product produced increased because in 2016 the sale of spray-dried material to other companies rose compared to the previous year (emissions from this phase are included in the emissions count but there is no corresponding output of finished product)
In a change from previous years the new GRI-G4 guidelines also require reporting of nitrogen oxide and sulphur oxide emissions Nitrogen oxide (NOx) emissions are within the limits permitted under the integrated environmental authorisation Sulphur oxide (SOx) emissions are not reported here since this figure is not required by the IEA
Transport
The materiality study reveals that transport is a significant factor for both stakeholders and Florim itself The company is not able to measure the impact of transportation of finished product on the local area since all shipments are ex-works However Florim which has been introducing electric vehicles to replace its oldest most obsolete unleaded petrol forklifts for years now has further optimized the handling of materials thanks to the new highly-automated logistics hub created at the via Canaletto location In 2016 about 53 of the vehicles used on the companys premises were electric with no direct greenhouse gas emissions
2016 Sustainability Report26
CEDIT ndash Creative Composition
2016 Sustainability Report 27
Workforce Composition
In 2016 the workforce included 27 people with disabilities 6 women and 21 menBearing in mind the job descriptions arising from the specific industrial sector the breakdown between men and women is in line with the industry average Male office workers and executives earn an average of 10 more than women for jobs of equal responsibility Among blue-collar workers the difference is 7 The company had a total of 29 foreign employees 24 at Fiorano and 5 at Mordano
Manager Executive Office worker
2013 2014 2015 2016 2013 2014 2015 2016 2013 2014 2015 2016
Women 2 3 3 3 3 1 1 1 137 142 133 149
Men 18 21 20 18 21 24 25 28 127 132 128 132
Total 20 24 23 21 24 25 26 29 264 274 261 281
Office ancillary Blue-collar worker Total
2013 2014 2015 2016 2013 2014 2015 2016 2013 2014 2015 2016
Women 18 16 25 19 226 219 212 196 385 381 375 368
Men 64 68 79 64 376 358 356 377 607 603 607 619
Total 82 84 104 83 602 577 568 573 992 984 982 987
Social Responsibility
Employees amp Corporate welfare
Its employees are the heart and soul of Florim they provide its character and its DNA Since 2009 when the current major economic crisis began Florim has undertaken a number of income support programs for its workforce Below we summarise some of the ongoing programmes and others run in 2016bull Ending of the Income Support Program for the Mordano plantbull Agreement with Sassuolo Hospital under which Florim employees and their family members enjoy discounts and shorter waiting times for specialist examinations and outpatient diagnostic tests performed on a private basisbull Special agreements with local health facilitiesbull Tax advice at special rates bull Special terms for banking services with financial consultants on-sitebull Discounts on the purchase of Florim products for employees homesbull Free entry to the Peggy Guggenheim Collection in Venice for employees and concessions for family membersbull Free provision of water and mineral salts in the plants during the summerbull Distribution of fuel vouchers to employees for the Christmas holidays
Summer Play Schemes and Cregraveches
In 2016 the summer play schemes for the children of employees at Fiorano and Mordano were continued for the fifth year in succession Seven different centers across the area between Modena and Bologna hosted 85 children (twice the number of the previous year) the company paid the fee for two weeks attendanceWhats more since 2013 the company has negotiated special terms with local cregraveches which now offer a number of places for employeesrsquo children at a reduced fee
2016 Sustainability Report28
Human Resources Management Policies
In July 2015 on renewal of the in-house supplement to the national employment contract the Management introduced a new phase in its relations with the Trade Unions with the aim of continuing and improving the good relationships enjoyed for decadesThe new company contract applied for all employees at the Fiorano headquarters includes more facilitations for part-time working the willingness to allow flexitime where feasible and the commitment to invest in staff training in order to generate full benefits from intellectual capital The company and the trades unions agreed on a plan to improve efficiency fundamental for maintaining the current level of competitiveness by establishing improvement in Production Efficiency and EBITDA as criteria for the payment of the new Performance Bonus The individual Attendance Score is considered together with these parameters The 2016 Performance Bonus in its first year of application was 20 higher than that paid in 2015 In addition in response to employees requests the Company increased the number of approved canteens extending the choice available and also introduced weekly laundering of work clothing for all production workersWith regard to applications for severance pay advances the Company confirms its commitment to continuing the policy implemented so far
Training
Florim believes that in-house training plays a key role in the companyrsquos development and provides a tool for stimulating and fulfilling the potential of its human resourcesMore than 10600 training hours were provided in 2016 to 847 people with an average of more than 11 hours of training per employee New projects included a 6-month on-line English language course which attracted a large number of participants and two highly structured training courses for the sales division and the communication department A retraining program for workers at the Mordano plant was also completed it comprised 4 technical courses attended by 31 people for an average of 13 hours per person Another new entry for 2016 was an innovative procedure for acquiring information about training needs using an on-line questionnaire available to all employees as well as line managers specific recommendations The Master in Florim project is discussed in depth in the specific section
Health and Safety
Florim was the first Italian ceramics manufacturer to receive BS OHSAS 18001 (Occupational Health amp Safety Assessment Series) certification from TUumlV this international standard certifies the implementation of an internal management system oriented towards occupational health and safetyThis major award confirms the companys constant commitment to the well-being of its employees Every year in addition to engineering inspections and machinery maintenance a number of hours of safety training are organised to raise awareness among workers and supervisors Specifically in 2016 2849 hours were dedicated to safety training and a significant reduction in injury rates was recordedMoreover BLSD refresher courses are continuously held for the team of Florim employees trained in first-aid operations and the use of the defibrillators available on site
2012 2013 2014 2015 2016
Number of workplace injuries 63 62 74 56 43
2016 Sustainability Report 29
The Master in Florim organized for the fourth time in 2016 is a vocational training project which aims to bridge the gap between education (high school or university) and the world of work The program which is one of the companys Social Responsibility projects sets out to help young people to get to know the company through a well structured work experience plan It offers a distinctively northern European approach with a method which alternates classroom teaching with internships in the various areas of the company Participants new university or high school graduates specialising in various subjects all below 30 years of age are therefore able to gain hands-on experience of all Florim departments from RampD to the production process and product distribution for an all-inclusive vision The MASTER courses ambitious aim is to match the individual participants talents with the companys real needs At the end of each edition the company hires all or some of the selected candidates enabling it to acquire new skills new experiences and new energy
Master 40 in figures
20 young people taking part6 months of training13 external lecturers264 hours of classroom teaching392 hours of practical training4 company visits (Ferrari Tetrapak Cremonini and Ducati)50 days of work experience on rotation involving 15 departments1 month of project work
The projects prestige is enhanced by its economic context since Florim pays the young participants for the entire period and its aim is to deal with the thorny problem of youth unemployment The Master has won approval from various faculties at major Italian universities The project was also a winner in the Emilia-Romagna Regions 2016 awards for Corporate Social Responsibility projects run in the local community A prize in the ldquoBusiness and Educationrdquo category was assigned to the Master project which aims to give young people the skills required for sustainable development
Master in Florim
2016 Sustainability Report
Watch the videoof the 4th edition
2016 Sustainability Report30
Local Community amp Culture
This chapter describes a number of programs Florim runs for the local community in the area where it originated and where it has been working for more than 50 years
Politecnico di Milano
Since the 20052006 academic year Florim has been a partner sponsor of a large number of Postgraduate Courses run by POLIDesign the Politecnico di Milano consortium which organizes its Master Degree coursesAlso in association with POLIDesign since 2012 Florims Milan showroom has hosted several design events for architects and designers of every nationality
Aziende modenesi per la RSI
ldquoAziende Modenesi per la RSIrdquo an independent open inclusive association of companies in the Modena area which believe in the principles and values of Corporate Social Responsibility was established by public deed on 30 September 2014 with Florim as a founding member Florim hosts the associations member companies every year to discuss the various topics proposed
Premio Lucchese
The Premio Lucchese presented for the twenty-ninth time in 2016 was established in memory of Giovanni Lucchese and consists of scholarships awarded to students at the ldquoAlessandro Voltardquo Technical High School in Sassuolo who graduate with full marks The award ceremony held every year at the Florim Gallery in association with Societagrave Ceramica Italiana of Bologna includes a talk given by a leading personality on a topic of current interest to an audience of eager young listeners
Intrapresaelig Collezione Guggenheim
As befits a company that combines the values of its local community and historic and artistic heritage with a flair for research and innovation Florim recently launched a partnership with the Peggy Guggenheim Collection Since its foundation Florim has always had a unique ability to incorporate the true cultural significance of its industry in its business model and by this project once again confirms its commitment to promoting art by supporting a collection of extraordinary beauty
Fondazione Ing Giovanni Lucchese
More than thirty years after the untimely death of Giovanni Lucchese ndash founder of what was then Floor Gres currently Florim ndash in 2013 his family established a Foundation in his name which since then has funded organizations and associations that support families in need in the ceramics district The Foundation also supports a variety of projects such as the summer play scheme for employees children the Premio Lucchese and the Florim HealthampTraining Center described in more detail below
The main projects undertaken in 2016 include the funding of the purchase of 10 defibrillators for the Municipality of Fiorano and the contributions made to the purchase of paediatric ambulances for the local area and to support the Parish charitable organizations and social services in the district
Watch the Premio Lucchese video
The project run jointly by Florim and Sassuolo Hospital adopts a completely new model combining industrial culture and healthcare in an original way to benefit the local people and community thanks to the coming-together of a ceramic coverings manufacturer and the public-private joint venture Ospedale di Sassuolo Spa Florim HealthampTraining is the synthesis of this idea an experimental center which promotes local training for healthcare and other staff health education and information advanced medical simulation and research
The Center
On the main Florim site and opened on 16 April 2014 the Center is 550 square meters in area and contains a modular lecture theatre able to seat over 100 people and a number of classrooms for seminars and lessons At its heart is a state-of-the-art control room crammed with technology that operates dummies capable of reproducing human functions of all kinds Advanced simulation is a major aid to maintaining the skills of emergency healthcare workers with a particular focus on pediatric and neonatal resuscitation
Health meetings
Designed as a space for community use the Center also aims to become a place where all sections of the population - workers schoolchildren parents teachers volunteers and even just members of the public - can learn about preventive health care and acquire first aid skills After the distribution to Florim employees of a questionnaire surveying their training needs and preferences a Center Scientific Committee of Sassuolo Hospital medical personnel was appointed and drew up a plan of bi-monthly ldquoHealth meetingsrdquo All meetings are led by doctors with expertise in the various topics who answer the many questions from the audience at the end of their talks Between its opening and the end of December 2016 the Center hosted 13 meetings on a variety of topics attended by about 1000 people including employees their family members and the community at large
Healthcare discounts for Florim employees
The project also includes a major welfare program for all Florim employees and their family members entitling them to discounts and shorter waiting times for specialist examinations and outpatient diagnostic tests performed on a private basis
American Heart Association
The world-famous American Heart Association (AHA) is the oldest and most respected American voluntary organization dedicated to the fight against cardiovascular diseases and strokes In 2015 the AHA via the Simaid International Training Center named the Florim HealthampTraining Center as an Authorized Training Site for basic and advanced cardiopulmonary resuscitation
Florim HealthampTraining Center
2016 Sustainability Report
Watch the Health amp Training Center video
2016 Sustainability Report32
Product Responsibility
Here we summarize the concept of Made in Florim denoting a product that encapsulates the companys core values passion innovation a constant commitment to improvement and corporate social responsibility
Florim product certifications
CE Marking guarantees the user that the materials purchased meet the requirements of the relevant regulations and that the characteristics concerned are virtually unchanged for all production lots It is a declaration of conformity which protects the consumerrsquos safety The presence of the CE Marking on packaging guarantees that Florim products comply with the relevant regulatory requirements
Ecolabel (EC Regulation 662010) is a certification granted to products which comply with ecological and performance criteria set at a European level concerning raw material extraction supplier selection manufacturing processes packaging distribution use and disposal The certified Florim collections are Architech Ecotech Reverse Walks 10 by Floor Gres and Pietra del Nord under the Rex brand
Several ceramic tile collections bearing the Florim brands have earned certification from Bureau Veritas for their pre-consumer recycled material content These articles are therefore fully eco-compatible and can meet the environmental sustainability requirements imposed by many international certifications
Florim is a member of the US Green Building Council (USGBC) the most important association which promotes the reduction of buildings negative impact on the environment To allow the effective monitoring a projects level of sustainability the USGBC has developed a certification procedure for the development of sustainable buildings which assess and certifies the sustainability of a building in its entirety Florim materials are able to help to gain LEED points in a number of areas (data available on the Florim brand websites)
Florim has achieved the prestigious Greenguard certification for all its products Issued by the American body UL Environment this certification aims to reduce indoor pollution caused by interior design systems and materials UL Environment thus aims to protect health by improving air quality and reducing peoples exposure to chemicals and other pollutants Florim has also achieved Greenguard Gold Certification which imposes even stricter limits to confirm that a given product is suitable for use even in locations such as schools and health care facilities
The EPD or Environmental Product Declaration is a document which defines the environmental impacts arising from production In 2016 Florim participated in the study - certified by the German organization IBU - performed on the ceramics industry average data which aims to raise international awareness of the excellence of the environmental standards achieved
Beyond the standardsMade in Florim products are a guarantee of safety highly innovative content and eco-friendliness The people who produce them work in a safe place and in ethically sustainable conditions Due to their nature all Florim products are guaranteed free from pollutant emissions do not accumulate electrostatic charges are frostproof and completely inert and are undamaged by contact with flames The Groups Internet sites and collection catalogues contain the technical data sheets which detail the product information (slip-resistance breaking strain abrasion resistance etc) for every collection as well as its recycled material content with the relative certificates
During the period under consideration no banned products were placed on the market and the company was not found guilty of any breaches of the law with regard to data protection or its marketing and communication activities
EU Ecolabel nr IT2104
2016 Sustainability Report 33
Quality SystemThe current ISO 9001 standards define quality as the ability to satisfy explicit or implicit needs via a product or a service A Quality System implies constant improvement of company processes in order to realise products that always satisfy the customerrsquos needs Further to the 2016 audit Florim obtained the renewal of its UNI EN ISO 90012015 certification for the design manufacture and sale of all categories of ceramic tile
Objective Indicator 2012 2013 2014 2015 2016
Continual improvement of control of the production process
Percentage of First Grade Product ()
924 943 942 952 956
Quality rate () 883 905 903 905 909
Scrap rate () 44 41 42 42 49
Productivity (sq mhour) 186 188 186 190 200
Improvements in sales performance and customer satisfaction
Innovation rate () 330 296 367 455 364
Coverage () 795 714 814 813 816
Total portfolio shippable within one month ()
911 837 888 893 897
Optimization of range and stocks
Obsolete stock () 172 126 165 120 69
Stock turnover rate () 13 15 16 15 16
Gradual elimination of disputes complaints and claims concerning service
Square meters affected by complaints ()
17 12 08 12 09
Complaints by number of order items ()
10 11 11 10 10
Gradual improvement in staff skill levels
Employee turnover () 15 23 04 04 12
KeyPercentage of first grade product percentage ratio between the square meters of first grade products and the total square meters transferred to stockQuality rate percentage ratio between the square meters of first grade product transferred to stock and the square meters leaving the pressesScrap rate percentage difference between square meters of material leaving the presses and square meters of product actually transferred to stockProductivity ratio between the square meters transferred to stock and the total hours worked in the plantInnovation rate ratio between square meters sold belonging to series designed in the last three years and total square meters sold Florim uses this indicator to assess the effectiveness of its design process in terms of salesCoverage percentage ratio between square meters available for immediate shipment and the square meters on orderTotal portfolio of orders shippable within one month percentage ratio between the square meters which can be shipped in 30 days and the square meters on orderObsolete stock percentage ratio between the square meters of substandard discontinued produce and the total square meters in stock Stock turnover rate ratio between the square meters sold and the square meters in stockSquare meters affected by complaints percentage ratio between the square meters affected by complaints and the square meters soldComplaints by number of order items percentage ratio between the number of complaints and the number of items orderedEmployee turnover percentage ratio between the number of employees leaving the company and being replaced and the workforce at the start of the year
2016 Sustainability Report34
Casamood - Neutra 60 Collection
2016 Sustainability Report 35
OUR COMMITMENTS
The promises we keptIn our last Sustainability Report we committed to achieving a large number of objectives the following are the outcomes we attained
Relaunch of the ldquoCEDIT ndash Ceramiche drsquoItaliardquo brand OBJECTIVE ACHIEVED
Launch of the FLORIM stone brand OBJECTIVE ACHIEVED
Installation of a new latest-generation kiln at the Mordano plant OBJECTIVE ACHIEVED
Transfer of the Moscow showroom to new premises SCHEDULED FOR 2017
Creation of a new gatehouse at the Mordano plantOBJECTIVE POSTPONED TO GIVE PRIORITY TO THE CONSTRUCTION OF THE NEW FACTORY
Introduction of ERP system at Florim USA OBJECTIVE ACHIEVED
Installation of a new spray dryer and raw material handling system at Florim USA
OBJECTIVE ACHIEVED
Economic Responsibility
Renewal of certification of the Florim environmental and energy management system
OBJECTIVE ACHIEVED
Award of new certifications for collections manufactured with a high recycled material content
OBJECTIVE ACHIEVED
Continuation of work to reduce environmental impacts at Mordano especially with the reduction of energy costs
OBJECTIVE ACHIEVED
Continuation of the work to remove asbestos cement roofing materials at the Mordano plant
OBJECTIVE ACHIEVED
Expansion of the system which conveys rainwater to the treatment plant OBJECTIVE ACHIEVED
Reduction of the noise emissions of the air filtering systems OBJECTIVE ACHIEVED
Increase of recycling targets through constant awareness-raising amongst all staff and optimisation of recycling facilities
OBJECTIVE ACHIEVED
Continuation of replacement of the diesel forklift trucks for use on outdoor yards with electric vehicles
OBJECTIVE ACHIEVED
Environmental Responsibility
Running of fourth edition of Master Florim course with new procedures OBJECTIVE ACHIEVED
Creation of an internal refreshment area for the Fiorano office staff OBJECTIVE ACHIEVED
Improvement of corporate welfare through the activation of new free services and discounts tailored to employees needs
OBJECTIVE ACHIEVED
Continuation of the health meetings for the local community in association with Ospedale di Sassuolo Spa
OBJECTIVE ACHIEVED
Organization of new community events at Florim Gallery OBJECTIVE ACHIEVED
Organization of Florim Family Day 2016 A PARTY WAS ORGANISED FOR EMPLOYEES
Social Responsibility
2016 Sustainability Report36
The targets we set for ourselvesWe aim to achieve the following objectives in 2017
Economic Responsibility
Construction of a new factory at Mordano to produce large slabs
Launch of the project to unite the Florim spa sales organizations
Total restyling of the corporate and brand Internet sites
Launch of the HUB project - Intranet CRM Marketing Automation
New plants at Florim USA a press two sorting lines a polishing and rectifying line
New working spaces and cloakrooms for technical staff at the American plant
Environmental Responsibility
Purchase of a new cogenerator for the Mordano plant
Introduction of a new rainwater collection system at Fiorano
Land reclamation project involving covering of the Rio Spezzano stream at Fiorano
Implementation of new software for continual monitoring of energy impacts at Fiorano
Modernisation of the compressor room to improve energy impacts at Mordano
Increase of recycling targets through constant awareness-raising amongst all staff and optimisation of recycling facilities
Continuation of replacement of the diesel forklift trucks for use on outdoor yards with electric vehicles
Social Responsibility
Improvement of corporate welfare through the activation of new free services and discounts tailored to employees needs
Continuation of the health meetings for the local community in association with Ospedale di Sassuolo Spa
Organization of new community events at Florim Gallery
Organization of a new event for Florim spa employees
New offices for hospitality and events staff at Fiorano
2016 Sustainability Report 37
FLORIM USA
Profile and Economic ResponsibilityFlorim USA with registered office at Clarksville - Tennessee - and its subsidiary Florim Solution Inc have been part of the Florim Group since 2000 The Florim USA manufacturing plant one of the largest most technologically advanced in the United States produces porcelain stoneware tiles for the residential market and undertakes commercial projects in North America During the last few years Florim USA has implemented a growth and process optimization strategy which has generated significant technological progress with more innovations planned for the future The strategy adopted will put Florim USA at the worldwide state of the art in porcelain stoneware tile manufacture
In 2016 of the 18 million USD invested 147 was allocated for installation of a latest-generation raw material handling system and a large spray-dryer with an innovative sorting system Improvements were made to other parts of the process to increase their efficiency leading to a further reduction in emissions and scrap rates Additional investments are planned during 2017 to continue this dual trend of rising production with mitigation of environmental impact
The new Florim Flagship Store in New York (152 Madison Avenue 32nd Street)
2016 Sustainability Report38
Environmental ResponsibilityFlorim USA implements the same environmental policy as Florim and is committed to achieving the following objectives
bull reduction of the energy used in the production processbull improvement of the waste management process with a focus on recovery and reusebull introduction of new more eco-efficient technologiesbull adoption of integrated management systems
Florim USA has been pursuing a strategy of careful management of its operations and environmental impact for a number of years Here we summarise the main actions taken and the results achieved in 2016
bull installation of a latest-generation spray-dryer in 2016bull installation of an innovative raw material handling system in 2016bull 100 recycling of wastewater within the processbull optimisation of the management of water bottles with elimination of about 34200 of them per annumbull reuse of almost all production scrap (+99)bull 157000 kg of cardboard recycled in 2016bull award of two different types of product certificationbull 9300 kg of plastic recycledbull recycling of 17 complete trucks of pallets
Environmental Projects and Awards
Florim USA has received Clarksville Montgomery County Green Certification (CMCGC) CMCGC is a program designed to help companies learn and implement best practices in the area of environmental stewardship to sustain the local communityrsquos resources through a series of free workshops taught by local environmental specialists Since 2014 Florim has allocated some of its Environment Managers time for the running of these workshopsFlorim USA earned this green company certification thanks to a large number of projects first and foremost the one which eliminated the use of disposable water bottles replaced with individual reusable bottles provided by the company and a series of fill-up stations About 34200 bottles are removed from the waste cycle every year
During the latest phase of its plant optimization Florim USA has implemented a thorough construction material reuse policy In the various stages of demolition of the old plants including the old storage silos the concrete debris was recovered and reused in other construction worksThis project alone generated 11500 tons of recycled aggregate as well as several hundred tonnes of metal sold to a recycling firm
Environmental management system and eco-compatible products
Florim USArsquos products help builders and designers to meet the requirements for sustainable buildings as defined by the United States Green Building Council (USGBC) through the LEED Green Building Rating System This protocol evaluates and certifies the environmental sustainability of a building as a unit from its design to its day to day management To gain LEED credits many of the Florim USA product lines contain a significant percentage of recycled material (40 or more)This feature contributes to an increase in the LEED score in the projects where these products are installed In 2014 Florim USA together with a large number of other US tile manufacturers and the Tile Council of North America drew up a type III environmental product declaration (EPD) certified under the ISO 14025 standard This ceramic tile life-cycle analysis enables Florim USA products to gain LEED points under the new LEED v4 protocol
2016 Sustainability Report 39
Water use (gallonsper million square feetof finished tiles)
208137 216246 204962 195280 194268
Energy use
2012 2013 2014 2015 2016
Cubic feet of natural gas per million square feet of finished tiles 9343383 9149721 8331170 8390503 8380000
kWh per million square feet of finished tiles 510972 491171 450594 465976 490300
Emissions
Particulate material lt 21024 tonnes per annum
SO2 (sulphur dioxide) lt 1674 tonnes per annum
VOC (volatile organic compounds) lt 1245 tonnes per annum
NOx (oxides of nitrogen) lt 1501 tonnes per annum
Environmental performance indicators ndash summary
The following are the main environmental indicators related to the impact and performance of Florim USA during 2016
Pre-consumer recycled material
Its internal material recycling processes enable the company to minimise its environmental impact since most of the material which would otherwise be sent to landfills or other waste treatment centers is reusedbull Wastewater is entirely recycled within the production process without any discharge into the municipal drainsbull The material in the collection bags from the tile body and glaze preparation areas the press and glaze application is entirely recycled within the processbull All scrap fired tiles are entirely recycled within the processbull 157000 kg of cardboard was sold to an external recycled material dealerbull 17 trucks of unusable wooden pallets were sold to a pallet regeneration companybull About 9300 kg of waste shrink-wrap plastic film was recovered and recycled
Post-consumer recycled material
About 82000 kg of glass was removed from the flow of waste destined for the local landfill and recycled within the process Florim USA has signed an agreement with the local landfill for consignment of all the glass it handles which is collected and set aside for recycling
Water use disposal and reuse
The water used during the production process is recycled continually therefore no water is discharged into the municipal drains
The 2016 emissions figures are in line with those for previous years well below the standards laid down
Water use 2012 2013 2014 2015 2016
Water use (gallons per million square feet of finished tiles) 216246 204962 195280 194268 203928
2016 Sustainability Report40
Social Responsibility
Employees
The Florim USA workforce comprises 348 staff employed at the production site the Clarksville and Nashville outlet stores and the Florim Solution offices Of the 348 employees 273 are blue-collar workers and 75 office staff 5 employees are Italians on secondment to the United States Florim USA offers a number of benefits to full time employeesbull health and dental care insurancebull Vision insurancebull life insurance for employees and optionally for family membersbull temporary and permanent disability supportbull employee pension plan
2012 2013 2014 2015 2016
Workplace injuries 50 41 22 29 27
The Employee Assistance Program (EAP) also offers support to employees and their families in the event of psychological difficulty or other problems that can have a negative impact on their quality of life Florim USA supports all the costs of the program
Equal opportunities
Florim USA provides equal opportunities in all employment practices to all qualified employees and applicants regardless of race colour religion gender national origin age disability or membership of the armed forces or any other category protected by federal state or local laws
Health and safety
FLORIM USA is committed to ensuring a safe healthy workplace for all employees It therefore replaces old and obsolete equipment with new technologically more modern machinery and updates safety plans as new information gradually becomes availableAs well as an internal supervisor Florim USA has also appointed a health and safety committee which constantly monitors the plans effectiveness and makes any changes requiredThere are currently 20 plant employees who hold CPRfirst aid qualifications They occupy a variety of positions and work different shifts within the plant and have volunteered to attend training courses sponsored by the company for the award of these qualifications
Training
In 2016 every Florim USA employee attended an average of about 25 hours of training The training provided covered the operating procedures for the new equipment the main safety plans and the procedures for use of existing equipment for new employeesAll new staff undergo specific training for their department focusing on the safety-related aspects of the department concerned as well as more generalized safety training
Some of these themes includebull safe correct use of forklift trucksbull training on work in confined spacesbull shutdownwarning procedures and safe electrical practicesbull safe lifting procedures
2016 Sustainability Report 41
Florim USA ndash (Clarksville Tennessee)
For employees wishing to continue their education Florim USA offers assistance through the Educational Assistance Program It provides aid with the cost of education and textbooks and is available for any employee wishing to study for a technical qualification a diploma or a degreeThe plant staff training and education plan also includes various training schemes at Florim Italy where employees are instructed in the use of new equipment before it is installed at the American plantThroughout 2016 Florim USA will continue to provide a free e-learning course on its website for architects engineers and contractors (AEC) to improve their knowledge of sustainable porcelain stoneware tiles
Employee welfare activities
Florim USA employee picnic - In 2016 the company once again held its annual picnic for employees offering them a wide variety of foods games activities and live shows in an event which provided an unforgettable days enjoyment Within the event participants received prizes in the form of vouchers and gifts
Employee anniversary dinner - 2016 again saw the usual dinner to honour Florim USA employees with 5 10 15 20 or more years of service A special evening event was held in the presence of the Chairman and the other managers to celebrate the loyalty and hard work these employees have contributed during their careers with the firm
2016 Sustainability Report42
Local Community
During 2016 Florim USA continued to provide its support to a number of projects in its local areaSome of the main projects include
Scholarships - As part of its work to support the local community Florim has an established scheme which awards scholarships to deserving students at the Austin Peay State University in memory of Florim Group founder Giovanni Lucchese In December 2016 a delegation of Florim representatives attended a scholarship presentation lunch at the Austin Peay State University hosted by the President of the University
Montgomery County Green Certification Program - Florim USA staff actively participate in the Montgomery County Green Certification Program which aims to help companies learn and implement best practices with regard to safeguarding the environment and environmental resources
Donations - In 2016 the company again made a large number of donationsbull book collection for the Austin Peay State University Employees made a generous donation of used books in good condition for children and young people of the APSU in the hope of further promoting the education of future generationsbull to Community Cares the national organization that promotes the acceptance and social inclusion of individuals with Downs Syndromebull to the Aspire Clarksville Foundation a 501(c)(3) charitable foundation whose mission is to continuously improve the economy and the livability (quality of life) of the community by attracting significant capital investment and expansion by businesses and corporations thereby creating better opportunities and higher paying jobs for residentsbull to the Alzheimerrsquos Association a non-profit voluntary organization dedicated to the care and support of Alzheimers Disease sufferers and research into the condition Its aim is to eliminate the disease through the advancement of research to provide and enhance care and support for all affected and to reduce the risk of dementia through the promotion of brain health
Other activities - Every year Florim USA participates in the United Way Drive initiative to support local non-profit organizations which provide economic assistance and psychological support to persons in difficulty
Florim USA provides regular support to the Salvation Army by collecting canned foods for persons in needIn 2016 the company again organised a canned food collection for Manna Cafeacute in Clarksville TN Manna Cafeacute is a local non-profit organization based in Middle Tennessee with the primary mission of meeting peoples fundamental need for food before encouraging them to permanently change their lives for the better More than 15 of the population in Montgomery County are affected by food insecurity (about 28000 people) The percentage of children affected is about 215 a third of whom are excluded by income from federal programs such as free school mealsFinally donations were made tobull American Lung Association the leading organization working to save lives by improving lung health and preventing lung disease through research and educationbull Cheer for a Cure an organization that gives money directly to afflicting families who have a loved one suffering from cancer and need assistance to alleviate the added financial stressbull Habitat for Humanity Since 1992 Habitat for Humanity in Montgomery County Tennessee has worked with 93 low-income families with more than 210 children to revitalise various parts of Clarksville-Montgomery County by building new homes
2016 Sustainability Report 43
Quality SystemFlorim USA works under a Quality System certified to UNI EN ISO 9001 standards The following are some of the figures in brief
Objective Indicator 2012 2013 2014 2015 2016
Optimisation of control of the production process
Percentage of First Grade Product ()
932 917 940 949 9510
Quality rate () 883 857 893 906 909
Scrap rate () 56 65 48 45 45
KeyPercentage of first grade product ratio between square feet of first grade material and total square feet transferred to stockQuality rate ratio between square feet of first grade material transferred to stock and square feet pressedScrap rate ratio between square feet pressed and square feet of product actually transferred to stock
Other ActivitiesFlorim USA and trade shows
In 2016 Florim USA participated at a number of shows and events including Coverings the AIA Tennessee Convention Hardscape North America Total Solutions Plus Neocon International Pool - Spa and Patio Expo These events targeted at the various categories of industry professionals such as dealers and designers gave Florim USA the opportunity to present its new range of indoor and outdoor products
Design Center
In December 2015 Florim USA opened a design center showroom in Nashville (TN) in a strategic location close to the airport and the city center With a spacious area to host individual CEU presentations and workshops this design center has the potential to be a major resource for local architects In 2016 it was also awarded the ldquoOutstanding Boothrdquo booth prize at the 33rd edition of the Annual Home Decorating and Remodeling Show The location is the ideal place for sharing ideas finding inspiration and putting professionals and architects in touch with each other
Florim Nashville Design Center
2016 Sustainability Report44
GRI International Sustainability Indicators SDGsThe information below illustrates the correspondence between the Florim (Italian companies) 2016 Sustainability Report the GRI-G4 guidelines and the icons of the Sustainable Development Goals (SDGs) definitively adopted by the United NationsA description of the SDGs is available at wwwglobalcompactnetworkorg
GRI indicators
Description Page Reference to SDGs
1 Strategy and Analysis
G4-1 Statement from the most senior decision-maker of the organization 5
2 Organization profile
G4-3 Name of the organization 2
G4-4 Primary brands products andor services 9
G4-5 Location of the organizations headquarters 9
G4-6 Number and names of the countries where the organization operates 9
G4-7 Nature of ownership and legal form 14
G4-8 Markets served 9
G4-9 Scale of the organization 8 8
G4-10 Significant changes regarding size structure or ownership 8
G4-11 Employees covered by National Collective Bargaining Agreement 27
G4-12 Describe the supply chain 16
G4-13Significant changes regarding the organizationrsquos size structure ownership or its supply chain
Reporting process
launched
G4-14 Precautionary principle 22
G4-15 List of external commitments in which the company is involved 22 32 33
G4-16 Associations or interest groups in which the company is involvedwwwflorimit gt
about us gt partnerships
3 Identified material aspects and boundaries
G4-18 Process used to define the report content 6
G4-19 Material aspects 16
G4-20 Boundaries of each material aspect 6
G4-21 Boundaries of each material aspect outside the organizationPartial reporting
(pages 6 16)
G4-22 Explanation of the effect of any restatements of information provided in previous reports 6
G4-23Significant changes from previous reporting periods in the scope boundaries or measurement methods
6
3 Stakeholder engagement
G4-24 List of stakeholders 15
G4-25 Identification of stakeholders 15
G4-26 Stakeholder engagement 6 16
G4-27 Key topics and concerns that have been raised through stakeholder engagement 16
4 Boundary of the Report
G4-28 Reporting period 6
G4-29 Date of publication 2
G4-30 Reporting cycle 6
G4-31 Contacts and addresses for additional information 46
5 GRI Content Index
G4-32 Reporting option chosen 6 7
G4-33 External assurance of ReportThe Report is not
externally assured
2016 Sustainability Report 45
GRI indicators
Description Page Reference to SDGs
6 Governance
G4-34 Governance structure 14
7 Ethics and integrity
G4-56 Values principles standards and norms of behavior 13 16
Economic performance indicators
EC1 Direct economic value generated and distributed 19 25789
EC5 Wages 27 158
EC7 Development and impact of infrastructure investments and services supported 23 24 31 257911
Environmental performance indicators
G4-EN2 Percentage of materials used that are recycled input materials 17 22 23 812
G4-EN3 Energy consumption within the organization 24 781213
G4-EN6 Reduction of energy consumption 17 24 71213
G4-EN7 Reductions in energy requirements of products and servicesPartial reporting
(page 22)71213
G4-EN8 Total water withdrawal by source 17 23 6
G4-EN10 Percentage and total volume of water recycled and reused 17 21 23 612
G4-EN11 Biodiversity 23 615
G4-EN15 Total indirect greenhouse gas emissions by weight 25 3121315
G4-EN16 Total indirect greenhouse gas emissions by weight 25 3121315
G4-EN19 Reduction of greenhouse gas emissions 8 24 1315
G4-EN21 NOx SOx and other significant air emissions 25 31215
G4-EN22 Total water discharge by quality and destination 23 6
G4-EN23 Total weight of waste by type 17 22 3612
G4-EN27 Impact mitigation of environmental impacts of products and services 23 68121315
G4-EN29 Monetary value of significant fines 22 16
G4-EN30 Significant environmental impacts of transporting products and goodsmaterialsPartial reporting
(page 25)111213
Social performance indicators
G4-LA1 Total number and rates of new employee hires and employee turnoverPartial reporting
(pages 17 27)8
G4-LA6 Workplace injury ratesPartial reporting
(page 17)38
G4-LA9 Average hours of training per year per employee 28 48
G4-LA12Composition of governance bodies and breakdown of employees according to gender age group etc
27 58
G4-LA13 Ratio of basic salary and total remuneration of women to men 27 5810
Society
G4-SO1 Operations with local community engagement 12 31 16
G4-SO3 Operations assessed for risks related to corruptionPartial reporting
(page 13)
Product responsibility
G4-PR1 Assessment of health and safety impacts for improvement 23 32
G4-PR3 Type of information about products and services required by the procedures 32 12
G4-PR5 Proceedings relating to customer satisfaction including surveys conducted to measure it 33
G4-PR6 Sale of banned or disputed products 32
G4-PR8 Number of substantiated complaints regarding breaches of privacy 32 16
2016 Sustainability Report46
Your Assessment
You are kindly requested to take a few minutes of your time to give us your assessment and any suggestions to enable us to improve future editions of our Sustainability Report
Click here to send us your feedback
To keep up to date with our business
Spazio CEDIT - interior (Milan)
wwwflorimiten
Florim Ceramiche
Florim4Architects
Florim_ceramiche
Florim Ceramiche spa
Florim Ceramiche
Florim Ceramiche
For any further information please feel free to contact our communications department comunicazioneflorimit
2016 Sustainability Report 47
Premio Lucchese - Florim Gallery (Fiorano Modenese - Modena Italy)
Intrapresaelig Guggenheim Collection - Massimo Bottura in Florim Gallery (Fiorano Modenese - Modena Italy)
Panathlon Christmas Gala - Florim Gallery (Fiorano Modenese - Modena Italy)
2016 Sustainability Report48
White Christmas Party - Florim Gallery (Fiorano Modenese - Modena Italy)
Cersaie - Mario Biondi in Florim Gallery (Fiorano Modenese - Modena Italy)
Dal buio alla luce - Social event at Florim Gallery (Fiorano Modenese - Modena Italy)
2016 Sustainability Report 49
Florim Gallery entrance (Fiorano Modenese - MO)
2016 Sustainability Report52
Florim Ceramiche spaVia Canaletto 24 - 41042 Fiorano Modenese (Modena Italy) - Tel +39 0536 840111 - wwwflorimit
2016 Sustainability Report22
Certifications
System and process certifications
UNI EN ISO 14001TUumlV has awarded Florim the highly-regarded UNI EN ISO 14001 voluntary certification which confirms its compliance with a series of internally certified procedures intended to improve the internal environmental management system The decision to seek this certification springs from the desire to reconcile quality with efficiency and productivity while protecting the environment and community in which the company operates
UNI EN ISO 50001Thanks to a careful energy management policy and aided by the latest investments in the production area also intended to improve energy efficiency Florim was the worlds first ceramics manufacturer to obtain ISO 50001 certification of its Energy Management System
In addition to its environmental certifications Florim has also been awarded prestigious AEO (Authorized Economic Operator) status
Further to a lengthy and demanding audit process by the Customs Authorities in 2016 Florim was awarded AEO certification the first company in the Province of Modena to receive this major form of approval Authorised Economic Operator status guarantees the companys absolute compliance with customs and security requirements in its foreign trade
Environmental Management
Waste 2012 2013 2014 2015 2016
Total waste produced (t) 30228 21170 22300 30862 34423
Non-dangerous recyclable waste (such as paper and cardboard fired scraps plastic glass and wood) ()
989 982 985 991 989
Non-dangerous disposed-of waste (such as the waste picked up by the motor sweepers) ()
02 04 02 02 02
Dangerous recyclable waste (such as spent oil batteries and monitors) ()
00 01 01 01 00
Dangerous disposed-of waste (such as spent lime) () 01 13 12 07 09
Third-party waste recycled within the production process (t) () 4028 4190 1721 2570 5627
Besides recycling greenware waste from its own production cycle (not included in the table because the amount cannot be calculated) Florim also recycles third party waste
Florims operations have always been oriented towards optimization of impact on the local community and environment Thanks to the work of its research laboratories the support of all staff and the recent investment plans tangible results have been achieved The data provided below reveal that in spite of an increase in production of 8 compared to the previous year consumption remains low The companys commitment to environmental protection is all-inclusive and also comprises a focus on the district within which it operates One example is the total removal of all asbestos cement from the Fiorano Modenese plant and the creation of the new recycling station opened in 2015 and donated to the Local Authority as a public serviceAs in previous years during 2016 Florim was not fined for any breaches of environmental regulations or laws
Florim recycles and optimises within the production process all greenware scraps dust residues from filters and sludge from the process and rectification wastewater treatment system The waste produced is detailed in the table the significant differences between years are due mainly to the major demolition and subsequent reconstruction works undertaken at the Italian plants
Waste Management
2016 Sustainability Report 23
Water Resources
No environmental impact of wastewater discharges is specified since all the water from the production cycle is completely reused (100) All other effluents comply with legal requirements
The figure states the total cubic meters of water used per ton of finished product The water used in the Fiorano production process is drawn from private company-owned wells with water from the public main only used for non-industrial purposes The Mordano plant is supplied by an industrial water main Water use is measured by means of meter readings Four highly innovative dry rectifying plants have gone into production at Mordano since 2015 enabling the company to eliminate the physicalchemical treatment of the water used in the rectification process
WATER USE
2012
08
2013
08
2014
08
2015
07Total water consumption (msup3) finished product (t)
07
2016
All packaging used for Florim materials is made from recycled paper and parts of the coverings used to protect pallets of finished products consist of recycled plastic Whats more all the packaging used (boxes cardboard shrink wraps pallets etc) can be completely recycled by the end user The latest investments made include new eco-friendly packaging machines increasing the number of these machines installed to 15 These plants completely eliminate waste due to leftover inventory saving significant amounts of cardboard
Packaging and Coverings
As the materiality assessment states Florim has no significant impacts on the biodiversity of its local area since the company is located inside the Fiorano Modenese ceramics manufacturing district at least 5 Km from the nearest nature reserve at Salse di Nirano Florim takes special care over the choice of the raw materials used for its tile body mixes of which it is required to provide documentation guaranteeing compliance with the European Directives protecting wild birds (EU Dir 79409EEC) and habitats (EU Dir 9243EEC) and the United Nations Convention on the protection of biodiversity It has also introduced a software program - used at the 3 production plants (Italy and the USA) - for the management of data on the origin of raw materials such as quarry location distance from the factory recycled content declaration technical safety and radioactive content data sheets and the expiry of the quarrying permit issued by the government
Raw Materials and Biodiversity
2016 Sustainability Report24
Energy Management
There is no disputing that large amounts of energy are required to power the production processes of ceramic tile plants with consequent direct and indirect impacts on the local area and the environmentThe main indicator used to measure plants energy performance is the mean specific total energy consumption (TEJ) measured in GJt of product transferred to stock As the table below shows this figure is obtained by adding together heat consumption (NGJ) and electricity used (EEJ)
Parameter ndash Definition Unit of measurement
2012 2013 2014 2015 2016
NGJ Mean specific natural gas consumption in relation to the unit of weight of finished product transferred to stock
GJt 557 571 576 578 598
EEJ Mean specific electricity consumption in relation to the unit of weight of product transferred to stock
GJt 111 108 111 108 107
TEJ Mean total specific energy consumption in relation to the unit of weight of product transferred to stock
GJt 668 679 686 685 705
Self-generated electricity as a proportion of consumption
67 68 62 65 75
With two cogeneration plants (for the combined in-house production of heat and electricity) and 16000 msup2 of photovoltaic panels the company certainly sets a new benchmark for the entire ceramic tile industry 2016 saw the replacement of the Fiorano turbine set (the main component of the cogeneration plant) while the one in Mordano was kept in operation 247 factors which led to a 10 increase in in-house electricity production in relation to consumption To provide a clearer idea of the scale of the achievement the amount of electricity the company generated in-house in 2016 (849873 MWh) would cover the average annual consumption of about 37000 households (With consumption per household of 229 MWh - data from the latest ISTAT survey in 2012ndash calculated on the Italian average)
Photovoltaic Plant
kWp kWh produced kg of CO2 not emitted
270021 15937250 8462680
Good Practice
The head office organizations are also optimizing paper and energy consumption In addition to issuing and distributing the energy saving handbook for its offices the company is also trying to maximize savings on the raw material used and specifically the use of paper Internally the company only purchases reams of paper which carry environmental certification and the paper used in offices is collected separately for proper disposal Externally the company distributes a system of merchandising products made mainly from recycled paper and encourages the gradual digitization of its marketing tools as well as publishing all its catalogues in digital format on its Internet sites Florim offers its distributor companies an innovative digital touch screen tool with the pdf versions of the catalogues and other tools for the final consumerIn 2016 Florim decided to adopt a new payslip distribution procedure introducing an online processing system As well as providing employees with new functions and greater operating flexibility thanks to this system the company no longer prints out the monthly payslips saving paper ink and energy The scheme initially involving all office workers has the ambitious target of also including the staff of the Fiorano and Mordano plants
The 16000 square meter photovoltaic plant received recognition from GSE (Energy Management Services) as one of the most innovative installations of its type and from its commissioning (October 2011) up to December 2016 it produced the following results
2016 Sustainability Report 25
Atmospheric Emissions
The industrial facility emits greenhouse gases basically CO2 from the following main sourcesbull combustion from the burning of fossil fuels (such as natural gas)bull processes from the minerals in the raw materials any organic matter in the clays used and any organic additives in tile body mixes
In order to comply with Directive 200387EC (ETS - Emission Trading Scheme) Florim has been reporting and certifying its CO2 emissions since 2013
CO2 emissions 2013 2014 2015 2016
CO2 emissions (t) 102728 103462 111862 132960
CO2 emissions (t) Finished product (t) 033 033 033 035
Emissions from the production cycle 2013 2014 2015 2016
Particulate material (gmsup2 finished product) 223 130 098 118
Lead (gmsup2 finished product) 000 000 000 000
Fluorine (gmsup2 finished product) 014 018 013 012
The increase in CO2 is due mainly to the large increase in the square meters produced (+ 8) and the 247 use of the cogeneration plant However it should be noted that the cogeneration plant provided a 10 increase in in-house electricity generation with lower CO2 emissions than electricity purchased from the grid produced mainly using fossil fuels (source ISPRA Fattori di emissione atmosferica di CO2 e sviluppo delle fonti rinnovabili nel settore elettrico Rapporti [Atmospheric CO2 Emission Factors and Development of Renewables in the Electricity Sector Reports] 2122015)The ratio between CO2 emissions and tons of finished product produced increased because in 2016 the sale of spray-dried material to other companies rose compared to the previous year (emissions from this phase are included in the emissions count but there is no corresponding output of finished product)
In a change from previous years the new GRI-G4 guidelines also require reporting of nitrogen oxide and sulphur oxide emissions Nitrogen oxide (NOx) emissions are within the limits permitted under the integrated environmental authorisation Sulphur oxide (SOx) emissions are not reported here since this figure is not required by the IEA
Transport
The materiality study reveals that transport is a significant factor for both stakeholders and Florim itself The company is not able to measure the impact of transportation of finished product on the local area since all shipments are ex-works However Florim which has been introducing electric vehicles to replace its oldest most obsolete unleaded petrol forklifts for years now has further optimized the handling of materials thanks to the new highly-automated logistics hub created at the via Canaletto location In 2016 about 53 of the vehicles used on the companys premises were electric with no direct greenhouse gas emissions
2016 Sustainability Report26
CEDIT ndash Creative Composition
2016 Sustainability Report 27
Workforce Composition
In 2016 the workforce included 27 people with disabilities 6 women and 21 menBearing in mind the job descriptions arising from the specific industrial sector the breakdown between men and women is in line with the industry average Male office workers and executives earn an average of 10 more than women for jobs of equal responsibility Among blue-collar workers the difference is 7 The company had a total of 29 foreign employees 24 at Fiorano and 5 at Mordano
Manager Executive Office worker
2013 2014 2015 2016 2013 2014 2015 2016 2013 2014 2015 2016
Women 2 3 3 3 3 1 1 1 137 142 133 149
Men 18 21 20 18 21 24 25 28 127 132 128 132
Total 20 24 23 21 24 25 26 29 264 274 261 281
Office ancillary Blue-collar worker Total
2013 2014 2015 2016 2013 2014 2015 2016 2013 2014 2015 2016
Women 18 16 25 19 226 219 212 196 385 381 375 368
Men 64 68 79 64 376 358 356 377 607 603 607 619
Total 82 84 104 83 602 577 568 573 992 984 982 987
Social Responsibility
Employees amp Corporate welfare
Its employees are the heart and soul of Florim they provide its character and its DNA Since 2009 when the current major economic crisis began Florim has undertaken a number of income support programs for its workforce Below we summarise some of the ongoing programmes and others run in 2016bull Ending of the Income Support Program for the Mordano plantbull Agreement with Sassuolo Hospital under which Florim employees and their family members enjoy discounts and shorter waiting times for specialist examinations and outpatient diagnostic tests performed on a private basisbull Special agreements with local health facilitiesbull Tax advice at special rates bull Special terms for banking services with financial consultants on-sitebull Discounts on the purchase of Florim products for employees homesbull Free entry to the Peggy Guggenheim Collection in Venice for employees and concessions for family membersbull Free provision of water and mineral salts in the plants during the summerbull Distribution of fuel vouchers to employees for the Christmas holidays
Summer Play Schemes and Cregraveches
In 2016 the summer play schemes for the children of employees at Fiorano and Mordano were continued for the fifth year in succession Seven different centers across the area between Modena and Bologna hosted 85 children (twice the number of the previous year) the company paid the fee for two weeks attendanceWhats more since 2013 the company has negotiated special terms with local cregraveches which now offer a number of places for employeesrsquo children at a reduced fee
2016 Sustainability Report28
Human Resources Management Policies
In July 2015 on renewal of the in-house supplement to the national employment contract the Management introduced a new phase in its relations with the Trade Unions with the aim of continuing and improving the good relationships enjoyed for decadesThe new company contract applied for all employees at the Fiorano headquarters includes more facilitations for part-time working the willingness to allow flexitime where feasible and the commitment to invest in staff training in order to generate full benefits from intellectual capital The company and the trades unions agreed on a plan to improve efficiency fundamental for maintaining the current level of competitiveness by establishing improvement in Production Efficiency and EBITDA as criteria for the payment of the new Performance Bonus The individual Attendance Score is considered together with these parameters The 2016 Performance Bonus in its first year of application was 20 higher than that paid in 2015 In addition in response to employees requests the Company increased the number of approved canteens extending the choice available and also introduced weekly laundering of work clothing for all production workersWith regard to applications for severance pay advances the Company confirms its commitment to continuing the policy implemented so far
Training
Florim believes that in-house training plays a key role in the companyrsquos development and provides a tool for stimulating and fulfilling the potential of its human resourcesMore than 10600 training hours were provided in 2016 to 847 people with an average of more than 11 hours of training per employee New projects included a 6-month on-line English language course which attracted a large number of participants and two highly structured training courses for the sales division and the communication department A retraining program for workers at the Mordano plant was also completed it comprised 4 technical courses attended by 31 people for an average of 13 hours per person Another new entry for 2016 was an innovative procedure for acquiring information about training needs using an on-line questionnaire available to all employees as well as line managers specific recommendations The Master in Florim project is discussed in depth in the specific section
Health and Safety
Florim was the first Italian ceramics manufacturer to receive BS OHSAS 18001 (Occupational Health amp Safety Assessment Series) certification from TUumlV this international standard certifies the implementation of an internal management system oriented towards occupational health and safetyThis major award confirms the companys constant commitment to the well-being of its employees Every year in addition to engineering inspections and machinery maintenance a number of hours of safety training are organised to raise awareness among workers and supervisors Specifically in 2016 2849 hours were dedicated to safety training and a significant reduction in injury rates was recordedMoreover BLSD refresher courses are continuously held for the team of Florim employees trained in first-aid operations and the use of the defibrillators available on site
2012 2013 2014 2015 2016
Number of workplace injuries 63 62 74 56 43
2016 Sustainability Report 29
The Master in Florim organized for the fourth time in 2016 is a vocational training project which aims to bridge the gap between education (high school or university) and the world of work The program which is one of the companys Social Responsibility projects sets out to help young people to get to know the company through a well structured work experience plan It offers a distinctively northern European approach with a method which alternates classroom teaching with internships in the various areas of the company Participants new university or high school graduates specialising in various subjects all below 30 years of age are therefore able to gain hands-on experience of all Florim departments from RampD to the production process and product distribution for an all-inclusive vision The MASTER courses ambitious aim is to match the individual participants talents with the companys real needs At the end of each edition the company hires all or some of the selected candidates enabling it to acquire new skills new experiences and new energy
Master 40 in figures
20 young people taking part6 months of training13 external lecturers264 hours of classroom teaching392 hours of practical training4 company visits (Ferrari Tetrapak Cremonini and Ducati)50 days of work experience on rotation involving 15 departments1 month of project work
The projects prestige is enhanced by its economic context since Florim pays the young participants for the entire period and its aim is to deal with the thorny problem of youth unemployment The Master has won approval from various faculties at major Italian universities The project was also a winner in the Emilia-Romagna Regions 2016 awards for Corporate Social Responsibility projects run in the local community A prize in the ldquoBusiness and Educationrdquo category was assigned to the Master project which aims to give young people the skills required for sustainable development
Master in Florim
2016 Sustainability Report
Watch the videoof the 4th edition
2016 Sustainability Report30
Local Community amp Culture
This chapter describes a number of programs Florim runs for the local community in the area where it originated and where it has been working for more than 50 years
Politecnico di Milano
Since the 20052006 academic year Florim has been a partner sponsor of a large number of Postgraduate Courses run by POLIDesign the Politecnico di Milano consortium which organizes its Master Degree coursesAlso in association with POLIDesign since 2012 Florims Milan showroom has hosted several design events for architects and designers of every nationality
Aziende modenesi per la RSI
ldquoAziende Modenesi per la RSIrdquo an independent open inclusive association of companies in the Modena area which believe in the principles and values of Corporate Social Responsibility was established by public deed on 30 September 2014 with Florim as a founding member Florim hosts the associations member companies every year to discuss the various topics proposed
Premio Lucchese
The Premio Lucchese presented for the twenty-ninth time in 2016 was established in memory of Giovanni Lucchese and consists of scholarships awarded to students at the ldquoAlessandro Voltardquo Technical High School in Sassuolo who graduate with full marks The award ceremony held every year at the Florim Gallery in association with Societagrave Ceramica Italiana of Bologna includes a talk given by a leading personality on a topic of current interest to an audience of eager young listeners
Intrapresaelig Collezione Guggenheim
As befits a company that combines the values of its local community and historic and artistic heritage with a flair for research and innovation Florim recently launched a partnership with the Peggy Guggenheim Collection Since its foundation Florim has always had a unique ability to incorporate the true cultural significance of its industry in its business model and by this project once again confirms its commitment to promoting art by supporting a collection of extraordinary beauty
Fondazione Ing Giovanni Lucchese
More than thirty years after the untimely death of Giovanni Lucchese ndash founder of what was then Floor Gres currently Florim ndash in 2013 his family established a Foundation in his name which since then has funded organizations and associations that support families in need in the ceramics district The Foundation also supports a variety of projects such as the summer play scheme for employees children the Premio Lucchese and the Florim HealthampTraining Center described in more detail below
The main projects undertaken in 2016 include the funding of the purchase of 10 defibrillators for the Municipality of Fiorano and the contributions made to the purchase of paediatric ambulances for the local area and to support the Parish charitable organizations and social services in the district
Watch the Premio Lucchese video
The project run jointly by Florim and Sassuolo Hospital adopts a completely new model combining industrial culture and healthcare in an original way to benefit the local people and community thanks to the coming-together of a ceramic coverings manufacturer and the public-private joint venture Ospedale di Sassuolo Spa Florim HealthampTraining is the synthesis of this idea an experimental center which promotes local training for healthcare and other staff health education and information advanced medical simulation and research
The Center
On the main Florim site and opened on 16 April 2014 the Center is 550 square meters in area and contains a modular lecture theatre able to seat over 100 people and a number of classrooms for seminars and lessons At its heart is a state-of-the-art control room crammed with technology that operates dummies capable of reproducing human functions of all kinds Advanced simulation is a major aid to maintaining the skills of emergency healthcare workers with a particular focus on pediatric and neonatal resuscitation
Health meetings
Designed as a space for community use the Center also aims to become a place where all sections of the population - workers schoolchildren parents teachers volunteers and even just members of the public - can learn about preventive health care and acquire first aid skills After the distribution to Florim employees of a questionnaire surveying their training needs and preferences a Center Scientific Committee of Sassuolo Hospital medical personnel was appointed and drew up a plan of bi-monthly ldquoHealth meetingsrdquo All meetings are led by doctors with expertise in the various topics who answer the many questions from the audience at the end of their talks Between its opening and the end of December 2016 the Center hosted 13 meetings on a variety of topics attended by about 1000 people including employees their family members and the community at large
Healthcare discounts for Florim employees
The project also includes a major welfare program for all Florim employees and their family members entitling them to discounts and shorter waiting times for specialist examinations and outpatient diagnostic tests performed on a private basis
American Heart Association
The world-famous American Heart Association (AHA) is the oldest and most respected American voluntary organization dedicated to the fight against cardiovascular diseases and strokes In 2015 the AHA via the Simaid International Training Center named the Florim HealthampTraining Center as an Authorized Training Site for basic and advanced cardiopulmonary resuscitation
Florim HealthampTraining Center
2016 Sustainability Report
Watch the Health amp Training Center video
2016 Sustainability Report32
Product Responsibility
Here we summarize the concept of Made in Florim denoting a product that encapsulates the companys core values passion innovation a constant commitment to improvement and corporate social responsibility
Florim product certifications
CE Marking guarantees the user that the materials purchased meet the requirements of the relevant regulations and that the characteristics concerned are virtually unchanged for all production lots It is a declaration of conformity which protects the consumerrsquos safety The presence of the CE Marking on packaging guarantees that Florim products comply with the relevant regulatory requirements
Ecolabel (EC Regulation 662010) is a certification granted to products which comply with ecological and performance criteria set at a European level concerning raw material extraction supplier selection manufacturing processes packaging distribution use and disposal The certified Florim collections are Architech Ecotech Reverse Walks 10 by Floor Gres and Pietra del Nord under the Rex brand
Several ceramic tile collections bearing the Florim brands have earned certification from Bureau Veritas for their pre-consumer recycled material content These articles are therefore fully eco-compatible and can meet the environmental sustainability requirements imposed by many international certifications
Florim is a member of the US Green Building Council (USGBC) the most important association which promotes the reduction of buildings negative impact on the environment To allow the effective monitoring a projects level of sustainability the USGBC has developed a certification procedure for the development of sustainable buildings which assess and certifies the sustainability of a building in its entirety Florim materials are able to help to gain LEED points in a number of areas (data available on the Florim brand websites)
Florim has achieved the prestigious Greenguard certification for all its products Issued by the American body UL Environment this certification aims to reduce indoor pollution caused by interior design systems and materials UL Environment thus aims to protect health by improving air quality and reducing peoples exposure to chemicals and other pollutants Florim has also achieved Greenguard Gold Certification which imposes even stricter limits to confirm that a given product is suitable for use even in locations such as schools and health care facilities
The EPD or Environmental Product Declaration is a document which defines the environmental impacts arising from production In 2016 Florim participated in the study - certified by the German organization IBU - performed on the ceramics industry average data which aims to raise international awareness of the excellence of the environmental standards achieved
Beyond the standardsMade in Florim products are a guarantee of safety highly innovative content and eco-friendliness The people who produce them work in a safe place and in ethically sustainable conditions Due to their nature all Florim products are guaranteed free from pollutant emissions do not accumulate electrostatic charges are frostproof and completely inert and are undamaged by contact with flames The Groups Internet sites and collection catalogues contain the technical data sheets which detail the product information (slip-resistance breaking strain abrasion resistance etc) for every collection as well as its recycled material content with the relative certificates
During the period under consideration no banned products were placed on the market and the company was not found guilty of any breaches of the law with regard to data protection or its marketing and communication activities
EU Ecolabel nr IT2104
2016 Sustainability Report 33
Quality SystemThe current ISO 9001 standards define quality as the ability to satisfy explicit or implicit needs via a product or a service A Quality System implies constant improvement of company processes in order to realise products that always satisfy the customerrsquos needs Further to the 2016 audit Florim obtained the renewal of its UNI EN ISO 90012015 certification for the design manufacture and sale of all categories of ceramic tile
Objective Indicator 2012 2013 2014 2015 2016
Continual improvement of control of the production process
Percentage of First Grade Product ()
924 943 942 952 956
Quality rate () 883 905 903 905 909
Scrap rate () 44 41 42 42 49
Productivity (sq mhour) 186 188 186 190 200
Improvements in sales performance and customer satisfaction
Innovation rate () 330 296 367 455 364
Coverage () 795 714 814 813 816
Total portfolio shippable within one month ()
911 837 888 893 897
Optimization of range and stocks
Obsolete stock () 172 126 165 120 69
Stock turnover rate () 13 15 16 15 16
Gradual elimination of disputes complaints and claims concerning service
Square meters affected by complaints ()
17 12 08 12 09
Complaints by number of order items ()
10 11 11 10 10
Gradual improvement in staff skill levels
Employee turnover () 15 23 04 04 12
KeyPercentage of first grade product percentage ratio between the square meters of first grade products and the total square meters transferred to stockQuality rate percentage ratio between the square meters of first grade product transferred to stock and the square meters leaving the pressesScrap rate percentage difference between square meters of material leaving the presses and square meters of product actually transferred to stockProductivity ratio between the square meters transferred to stock and the total hours worked in the plantInnovation rate ratio between square meters sold belonging to series designed in the last three years and total square meters sold Florim uses this indicator to assess the effectiveness of its design process in terms of salesCoverage percentage ratio between square meters available for immediate shipment and the square meters on orderTotal portfolio of orders shippable within one month percentage ratio between the square meters which can be shipped in 30 days and the square meters on orderObsolete stock percentage ratio between the square meters of substandard discontinued produce and the total square meters in stock Stock turnover rate ratio between the square meters sold and the square meters in stockSquare meters affected by complaints percentage ratio between the square meters affected by complaints and the square meters soldComplaints by number of order items percentage ratio between the number of complaints and the number of items orderedEmployee turnover percentage ratio between the number of employees leaving the company and being replaced and the workforce at the start of the year
2016 Sustainability Report34
Casamood - Neutra 60 Collection
2016 Sustainability Report 35
OUR COMMITMENTS
The promises we keptIn our last Sustainability Report we committed to achieving a large number of objectives the following are the outcomes we attained
Relaunch of the ldquoCEDIT ndash Ceramiche drsquoItaliardquo brand OBJECTIVE ACHIEVED
Launch of the FLORIM stone brand OBJECTIVE ACHIEVED
Installation of a new latest-generation kiln at the Mordano plant OBJECTIVE ACHIEVED
Transfer of the Moscow showroom to new premises SCHEDULED FOR 2017
Creation of a new gatehouse at the Mordano plantOBJECTIVE POSTPONED TO GIVE PRIORITY TO THE CONSTRUCTION OF THE NEW FACTORY
Introduction of ERP system at Florim USA OBJECTIVE ACHIEVED
Installation of a new spray dryer and raw material handling system at Florim USA
OBJECTIVE ACHIEVED
Economic Responsibility
Renewal of certification of the Florim environmental and energy management system
OBJECTIVE ACHIEVED
Award of new certifications for collections manufactured with a high recycled material content
OBJECTIVE ACHIEVED
Continuation of work to reduce environmental impacts at Mordano especially with the reduction of energy costs
OBJECTIVE ACHIEVED
Continuation of the work to remove asbestos cement roofing materials at the Mordano plant
OBJECTIVE ACHIEVED
Expansion of the system which conveys rainwater to the treatment plant OBJECTIVE ACHIEVED
Reduction of the noise emissions of the air filtering systems OBJECTIVE ACHIEVED
Increase of recycling targets through constant awareness-raising amongst all staff and optimisation of recycling facilities
OBJECTIVE ACHIEVED
Continuation of replacement of the diesel forklift trucks for use on outdoor yards with electric vehicles
OBJECTIVE ACHIEVED
Environmental Responsibility
Running of fourth edition of Master Florim course with new procedures OBJECTIVE ACHIEVED
Creation of an internal refreshment area for the Fiorano office staff OBJECTIVE ACHIEVED
Improvement of corporate welfare through the activation of new free services and discounts tailored to employees needs
OBJECTIVE ACHIEVED
Continuation of the health meetings for the local community in association with Ospedale di Sassuolo Spa
OBJECTIVE ACHIEVED
Organization of new community events at Florim Gallery OBJECTIVE ACHIEVED
Organization of Florim Family Day 2016 A PARTY WAS ORGANISED FOR EMPLOYEES
Social Responsibility
2016 Sustainability Report36
The targets we set for ourselvesWe aim to achieve the following objectives in 2017
Economic Responsibility
Construction of a new factory at Mordano to produce large slabs
Launch of the project to unite the Florim spa sales organizations
Total restyling of the corporate and brand Internet sites
Launch of the HUB project - Intranet CRM Marketing Automation
New plants at Florim USA a press two sorting lines a polishing and rectifying line
New working spaces and cloakrooms for technical staff at the American plant
Environmental Responsibility
Purchase of a new cogenerator for the Mordano plant
Introduction of a new rainwater collection system at Fiorano
Land reclamation project involving covering of the Rio Spezzano stream at Fiorano
Implementation of new software for continual monitoring of energy impacts at Fiorano
Modernisation of the compressor room to improve energy impacts at Mordano
Increase of recycling targets through constant awareness-raising amongst all staff and optimisation of recycling facilities
Continuation of replacement of the diesel forklift trucks for use on outdoor yards with electric vehicles
Social Responsibility
Improvement of corporate welfare through the activation of new free services and discounts tailored to employees needs
Continuation of the health meetings for the local community in association with Ospedale di Sassuolo Spa
Organization of new community events at Florim Gallery
Organization of a new event for Florim spa employees
New offices for hospitality and events staff at Fiorano
2016 Sustainability Report 37
FLORIM USA
Profile and Economic ResponsibilityFlorim USA with registered office at Clarksville - Tennessee - and its subsidiary Florim Solution Inc have been part of the Florim Group since 2000 The Florim USA manufacturing plant one of the largest most technologically advanced in the United States produces porcelain stoneware tiles for the residential market and undertakes commercial projects in North America During the last few years Florim USA has implemented a growth and process optimization strategy which has generated significant technological progress with more innovations planned for the future The strategy adopted will put Florim USA at the worldwide state of the art in porcelain stoneware tile manufacture
In 2016 of the 18 million USD invested 147 was allocated for installation of a latest-generation raw material handling system and a large spray-dryer with an innovative sorting system Improvements were made to other parts of the process to increase their efficiency leading to a further reduction in emissions and scrap rates Additional investments are planned during 2017 to continue this dual trend of rising production with mitigation of environmental impact
The new Florim Flagship Store in New York (152 Madison Avenue 32nd Street)
2016 Sustainability Report38
Environmental ResponsibilityFlorim USA implements the same environmental policy as Florim and is committed to achieving the following objectives
bull reduction of the energy used in the production processbull improvement of the waste management process with a focus on recovery and reusebull introduction of new more eco-efficient technologiesbull adoption of integrated management systems
Florim USA has been pursuing a strategy of careful management of its operations and environmental impact for a number of years Here we summarise the main actions taken and the results achieved in 2016
bull installation of a latest-generation spray-dryer in 2016bull installation of an innovative raw material handling system in 2016bull 100 recycling of wastewater within the processbull optimisation of the management of water bottles with elimination of about 34200 of them per annumbull reuse of almost all production scrap (+99)bull 157000 kg of cardboard recycled in 2016bull award of two different types of product certificationbull 9300 kg of plastic recycledbull recycling of 17 complete trucks of pallets
Environmental Projects and Awards
Florim USA has received Clarksville Montgomery County Green Certification (CMCGC) CMCGC is a program designed to help companies learn and implement best practices in the area of environmental stewardship to sustain the local communityrsquos resources through a series of free workshops taught by local environmental specialists Since 2014 Florim has allocated some of its Environment Managers time for the running of these workshopsFlorim USA earned this green company certification thanks to a large number of projects first and foremost the one which eliminated the use of disposable water bottles replaced with individual reusable bottles provided by the company and a series of fill-up stations About 34200 bottles are removed from the waste cycle every year
During the latest phase of its plant optimization Florim USA has implemented a thorough construction material reuse policy In the various stages of demolition of the old plants including the old storage silos the concrete debris was recovered and reused in other construction worksThis project alone generated 11500 tons of recycled aggregate as well as several hundred tonnes of metal sold to a recycling firm
Environmental management system and eco-compatible products
Florim USArsquos products help builders and designers to meet the requirements for sustainable buildings as defined by the United States Green Building Council (USGBC) through the LEED Green Building Rating System This protocol evaluates and certifies the environmental sustainability of a building as a unit from its design to its day to day management To gain LEED credits many of the Florim USA product lines contain a significant percentage of recycled material (40 or more)This feature contributes to an increase in the LEED score in the projects where these products are installed In 2014 Florim USA together with a large number of other US tile manufacturers and the Tile Council of North America drew up a type III environmental product declaration (EPD) certified under the ISO 14025 standard This ceramic tile life-cycle analysis enables Florim USA products to gain LEED points under the new LEED v4 protocol
2016 Sustainability Report 39
Water use (gallonsper million square feetof finished tiles)
208137 216246 204962 195280 194268
Energy use
2012 2013 2014 2015 2016
Cubic feet of natural gas per million square feet of finished tiles 9343383 9149721 8331170 8390503 8380000
kWh per million square feet of finished tiles 510972 491171 450594 465976 490300
Emissions
Particulate material lt 21024 tonnes per annum
SO2 (sulphur dioxide) lt 1674 tonnes per annum
VOC (volatile organic compounds) lt 1245 tonnes per annum
NOx (oxides of nitrogen) lt 1501 tonnes per annum
Environmental performance indicators ndash summary
The following are the main environmental indicators related to the impact and performance of Florim USA during 2016
Pre-consumer recycled material
Its internal material recycling processes enable the company to minimise its environmental impact since most of the material which would otherwise be sent to landfills or other waste treatment centers is reusedbull Wastewater is entirely recycled within the production process without any discharge into the municipal drainsbull The material in the collection bags from the tile body and glaze preparation areas the press and glaze application is entirely recycled within the processbull All scrap fired tiles are entirely recycled within the processbull 157000 kg of cardboard was sold to an external recycled material dealerbull 17 trucks of unusable wooden pallets were sold to a pallet regeneration companybull About 9300 kg of waste shrink-wrap plastic film was recovered and recycled
Post-consumer recycled material
About 82000 kg of glass was removed from the flow of waste destined for the local landfill and recycled within the process Florim USA has signed an agreement with the local landfill for consignment of all the glass it handles which is collected and set aside for recycling
Water use disposal and reuse
The water used during the production process is recycled continually therefore no water is discharged into the municipal drains
The 2016 emissions figures are in line with those for previous years well below the standards laid down
Water use 2012 2013 2014 2015 2016
Water use (gallons per million square feet of finished tiles) 216246 204962 195280 194268 203928
2016 Sustainability Report40
Social Responsibility
Employees
The Florim USA workforce comprises 348 staff employed at the production site the Clarksville and Nashville outlet stores and the Florim Solution offices Of the 348 employees 273 are blue-collar workers and 75 office staff 5 employees are Italians on secondment to the United States Florim USA offers a number of benefits to full time employeesbull health and dental care insurancebull Vision insurancebull life insurance for employees and optionally for family membersbull temporary and permanent disability supportbull employee pension plan
2012 2013 2014 2015 2016
Workplace injuries 50 41 22 29 27
The Employee Assistance Program (EAP) also offers support to employees and their families in the event of psychological difficulty or other problems that can have a negative impact on their quality of life Florim USA supports all the costs of the program
Equal opportunities
Florim USA provides equal opportunities in all employment practices to all qualified employees and applicants regardless of race colour religion gender national origin age disability or membership of the armed forces or any other category protected by federal state or local laws
Health and safety
FLORIM USA is committed to ensuring a safe healthy workplace for all employees It therefore replaces old and obsolete equipment with new technologically more modern machinery and updates safety plans as new information gradually becomes availableAs well as an internal supervisor Florim USA has also appointed a health and safety committee which constantly monitors the plans effectiveness and makes any changes requiredThere are currently 20 plant employees who hold CPRfirst aid qualifications They occupy a variety of positions and work different shifts within the plant and have volunteered to attend training courses sponsored by the company for the award of these qualifications
Training
In 2016 every Florim USA employee attended an average of about 25 hours of training The training provided covered the operating procedures for the new equipment the main safety plans and the procedures for use of existing equipment for new employeesAll new staff undergo specific training for their department focusing on the safety-related aspects of the department concerned as well as more generalized safety training
Some of these themes includebull safe correct use of forklift trucksbull training on work in confined spacesbull shutdownwarning procedures and safe electrical practicesbull safe lifting procedures
2016 Sustainability Report 41
Florim USA ndash (Clarksville Tennessee)
For employees wishing to continue their education Florim USA offers assistance through the Educational Assistance Program It provides aid with the cost of education and textbooks and is available for any employee wishing to study for a technical qualification a diploma or a degreeThe plant staff training and education plan also includes various training schemes at Florim Italy where employees are instructed in the use of new equipment before it is installed at the American plantThroughout 2016 Florim USA will continue to provide a free e-learning course on its website for architects engineers and contractors (AEC) to improve their knowledge of sustainable porcelain stoneware tiles
Employee welfare activities
Florim USA employee picnic - In 2016 the company once again held its annual picnic for employees offering them a wide variety of foods games activities and live shows in an event which provided an unforgettable days enjoyment Within the event participants received prizes in the form of vouchers and gifts
Employee anniversary dinner - 2016 again saw the usual dinner to honour Florim USA employees with 5 10 15 20 or more years of service A special evening event was held in the presence of the Chairman and the other managers to celebrate the loyalty and hard work these employees have contributed during their careers with the firm
2016 Sustainability Report42
Local Community
During 2016 Florim USA continued to provide its support to a number of projects in its local areaSome of the main projects include
Scholarships - As part of its work to support the local community Florim has an established scheme which awards scholarships to deserving students at the Austin Peay State University in memory of Florim Group founder Giovanni Lucchese In December 2016 a delegation of Florim representatives attended a scholarship presentation lunch at the Austin Peay State University hosted by the President of the University
Montgomery County Green Certification Program - Florim USA staff actively participate in the Montgomery County Green Certification Program which aims to help companies learn and implement best practices with regard to safeguarding the environment and environmental resources
Donations - In 2016 the company again made a large number of donationsbull book collection for the Austin Peay State University Employees made a generous donation of used books in good condition for children and young people of the APSU in the hope of further promoting the education of future generationsbull to Community Cares the national organization that promotes the acceptance and social inclusion of individuals with Downs Syndromebull to the Aspire Clarksville Foundation a 501(c)(3) charitable foundation whose mission is to continuously improve the economy and the livability (quality of life) of the community by attracting significant capital investment and expansion by businesses and corporations thereby creating better opportunities and higher paying jobs for residentsbull to the Alzheimerrsquos Association a non-profit voluntary organization dedicated to the care and support of Alzheimers Disease sufferers and research into the condition Its aim is to eliminate the disease through the advancement of research to provide and enhance care and support for all affected and to reduce the risk of dementia through the promotion of brain health
Other activities - Every year Florim USA participates in the United Way Drive initiative to support local non-profit organizations which provide economic assistance and psychological support to persons in difficulty
Florim USA provides regular support to the Salvation Army by collecting canned foods for persons in needIn 2016 the company again organised a canned food collection for Manna Cafeacute in Clarksville TN Manna Cafeacute is a local non-profit organization based in Middle Tennessee with the primary mission of meeting peoples fundamental need for food before encouraging them to permanently change their lives for the better More than 15 of the population in Montgomery County are affected by food insecurity (about 28000 people) The percentage of children affected is about 215 a third of whom are excluded by income from federal programs such as free school mealsFinally donations were made tobull American Lung Association the leading organization working to save lives by improving lung health and preventing lung disease through research and educationbull Cheer for a Cure an organization that gives money directly to afflicting families who have a loved one suffering from cancer and need assistance to alleviate the added financial stressbull Habitat for Humanity Since 1992 Habitat for Humanity in Montgomery County Tennessee has worked with 93 low-income families with more than 210 children to revitalise various parts of Clarksville-Montgomery County by building new homes
2016 Sustainability Report 43
Quality SystemFlorim USA works under a Quality System certified to UNI EN ISO 9001 standards The following are some of the figures in brief
Objective Indicator 2012 2013 2014 2015 2016
Optimisation of control of the production process
Percentage of First Grade Product ()
932 917 940 949 9510
Quality rate () 883 857 893 906 909
Scrap rate () 56 65 48 45 45
KeyPercentage of first grade product ratio between square feet of first grade material and total square feet transferred to stockQuality rate ratio between square feet of first grade material transferred to stock and square feet pressedScrap rate ratio between square feet pressed and square feet of product actually transferred to stock
Other ActivitiesFlorim USA and trade shows
In 2016 Florim USA participated at a number of shows and events including Coverings the AIA Tennessee Convention Hardscape North America Total Solutions Plus Neocon International Pool - Spa and Patio Expo These events targeted at the various categories of industry professionals such as dealers and designers gave Florim USA the opportunity to present its new range of indoor and outdoor products
Design Center
In December 2015 Florim USA opened a design center showroom in Nashville (TN) in a strategic location close to the airport and the city center With a spacious area to host individual CEU presentations and workshops this design center has the potential to be a major resource for local architects In 2016 it was also awarded the ldquoOutstanding Boothrdquo booth prize at the 33rd edition of the Annual Home Decorating and Remodeling Show The location is the ideal place for sharing ideas finding inspiration and putting professionals and architects in touch with each other
Florim Nashville Design Center
2016 Sustainability Report44
GRI International Sustainability Indicators SDGsThe information below illustrates the correspondence between the Florim (Italian companies) 2016 Sustainability Report the GRI-G4 guidelines and the icons of the Sustainable Development Goals (SDGs) definitively adopted by the United NationsA description of the SDGs is available at wwwglobalcompactnetworkorg
GRI indicators
Description Page Reference to SDGs
1 Strategy and Analysis
G4-1 Statement from the most senior decision-maker of the organization 5
2 Organization profile
G4-3 Name of the organization 2
G4-4 Primary brands products andor services 9
G4-5 Location of the organizations headquarters 9
G4-6 Number and names of the countries where the organization operates 9
G4-7 Nature of ownership and legal form 14
G4-8 Markets served 9
G4-9 Scale of the organization 8 8
G4-10 Significant changes regarding size structure or ownership 8
G4-11 Employees covered by National Collective Bargaining Agreement 27
G4-12 Describe the supply chain 16
G4-13Significant changes regarding the organizationrsquos size structure ownership or its supply chain
Reporting process
launched
G4-14 Precautionary principle 22
G4-15 List of external commitments in which the company is involved 22 32 33
G4-16 Associations or interest groups in which the company is involvedwwwflorimit gt
about us gt partnerships
3 Identified material aspects and boundaries
G4-18 Process used to define the report content 6
G4-19 Material aspects 16
G4-20 Boundaries of each material aspect 6
G4-21 Boundaries of each material aspect outside the organizationPartial reporting
(pages 6 16)
G4-22 Explanation of the effect of any restatements of information provided in previous reports 6
G4-23Significant changes from previous reporting periods in the scope boundaries or measurement methods
6
3 Stakeholder engagement
G4-24 List of stakeholders 15
G4-25 Identification of stakeholders 15
G4-26 Stakeholder engagement 6 16
G4-27 Key topics and concerns that have been raised through stakeholder engagement 16
4 Boundary of the Report
G4-28 Reporting period 6
G4-29 Date of publication 2
G4-30 Reporting cycle 6
G4-31 Contacts and addresses for additional information 46
5 GRI Content Index
G4-32 Reporting option chosen 6 7
G4-33 External assurance of ReportThe Report is not
externally assured
2016 Sustainability Report 45
GRI indicators
Description Page Reference to SDGs
6 Governance
G4-34 Governance structure 14
7 Ethics and integrity
G4-56 Values principles standards and norms of behavior 13 16
Economic performance indicators
EC1 Direct economic value generated and distributed 19 25789
EC5 Wages 27 158
EC7 Development and impact of infrastructure investments and services supported 23 24 31 257911
Environmental performance indicators
G4-EN2 Percentage of materials used that are recycled input materials 17 22 23 812
G4-EN3 Energy consumption within the organization 24 781213
G4-EN6 Reduction of energy consumption 17 24 71213
G4-EN7 Reductions in energy requirements of products and servicesPartial reporting
(page 22)71213
G4-EN8 Total water withdrawal by source 17 23 6
G4-EN10 Percentage and total volume of water recycled and reused 17 21 23 612
G4-EN11 Biodiversity 23 615
G4-EN15 Total indirect greenhouse gas emissions by weight 25 3121315
G4-EN16 Total indirect greenhouse gas emissions by weight 25 3121315
G4-EN19 Reduction of greenhouse gas emissions 8 24 1315
G4-EN21 NOx SOx and other significant air emissions 25 31215
G4-EN22 Total water discharge by quality and destination 23 6
G4-EN23 Total weight of waste by type 17 22 3612
G4-EN27 Impact mitigation of environmental impacts of products and services 23 68121315
G4-EN29 Monetary value of significant fines 22 16
G4-EN30 Significant environmental impacts of transporting products and goodsmaterialsPartial reporting
(page 25)111213
Social performance indicators
G4-LA1 Total number and rates of new employee hires and employee turnoverPartial reporting
(pages 17 27)8
G4-LA6 Workplace injury ratesPartial reporting
(page 17)38
G4-LA9 Average hours of training per year per employee 28 48
G4-LA12Composition of governance bodies and breakdown of employees according to gender age group etc
27 58
G4-LA13 Ratio of basic salary and total remuneration of women to men 27 5810
Society
G4-SO1 Operations with local community engagement 12 31 16
G4-SO3 Operations assessed for risks related to corruptionPartial reporting
(page 13)
Product responsibility
G4-PR1 Assessment of health and safety impacts for improvement 23 32
G4-PR3 Type of information about products and services required by the procedures 32 12
G4-PR5 Proceedings relating to customer satisfaction including surveys conducted to measure it 33
G4-PR6 Sale of banned or disputed products 32
G4-PR8 Number of substantiated complaints regarding breaches of privacy 32 16
2016 Sustainability Report46
Your Assessment
You are kindly requested to take a few minutes of your time to give us your assessment and any suggestions to enable us to improve future editions of our Sustainability Report
Click here to send us your feedback
To keep up to date with our business
Spazio CEDIT - interior (Milan)
wwwflorimiten
Florim Ceramiche
Florim4Architects
Florim_ceramiche
Florim Ceramiche spa
Florim Ceramiche
Florim Ceramiche
For any further information please feel free to contact our communications department comunicazioneflorimit
2016 Sustainability Report 47
Premio Lucchese - Florim Gallery (Fiorano Modenese - Modena Italy)
Intrapresaelig Guggenheim Collection - Massimo Bottura in Florim Gallery (Fiorano Modenese - Modena Italy)
Panathlon Christmas Gala - Florim Gallery (Fiorano Modenese - Modena Italy)
2016 Sustainability Report48
White Christmas Party - Florim Gallery (Fiorano Modenese - Modena Italy)
Cersaie - Mario Biondi in Florim Gallery (Fiorano Modenese - Modena Italy)
Dal buio alla luce - Social event at Florim Gallery (Fiorano Modenese - Modena Italy)
2016 Sustainability Report 49
Florim Gallery entrance (Fiorano Modenese - MO)
2016 Sustainability Report52
Florim Ceramiche spaVia Canaletto 24 - 41042 Fiorano Modenese (Modena Italy) - Tel +39 0536 840111 - wwwflorimit
2016 Sustainability Report 23
Water Resources
No environmental impact of wastewater discharges is specified since all the water from the production cycle is completely reused (100) All other effluents comply with legal requirements
The figure states the total cubic meters of water used per ton of finished product The water used in the Fiorano production process is drawn from private company-owned wells with water from the public main only used for non-industrial purposes The Mordano plant is supplied by an industrial water main Water use is measured by means of meter readings Four highly innovative dry rectifying plants have gone into production at Mordano since 2015 enabling the company to eliminate the physicalchemical treatment of the water used in the rectification process
WATER USE
2012
08
2013
08
2014
08
2015
07Total water consumption (msup3) finished product (t)
07
2016
All packaging used for Florim materials is made from recycled paper and parts of the coverings used to protect pallets of finished products consist of recycled plastic Whats more all the packaging used (boxes cardboard shrink wraps pallets etc) can be completely recycled by the end user The latest investments made include new eco-friendly packaging machines increasing the number of these machines installed to 15 These plants completely eliminate waste due to leftover inventory saving significant amounts of cardboard
Packaging and Coverings
As the materiality assessment states Florim has no significant impacts on the biodiversity of its local area since the company is located inside the Fiorano Modenese ceramics manufacturing district at least 5 Km from the nearest nature reserve at Salse di Nirano Florim takes special care over the choice of the raw materials used for its tile body mixes of which it is required to provide documentation guaranteeing compliance with the European Directives protecting wild birds (EU Dir 79409EEC) and habitats (EU Dir 9243EEC) and the United Nations Convention on the protection of biodiversity It has also introduced a software program - used at the 3 production plants (Italy and the USA) - for the management of data on the origin of raw materials such as quarry location distance from the factory recycled content declaration technical safety and radioactive content data sheets and the expiry of the quarrying permit issued by the government
Raw Materials and Biodiversity
2016 Sustainability Report24
Energy Management
There is no disputing that large amounts of energy are required to power the production processes of ceramic tile plants with consequent direct and indirect impacts on the local area and the environmentThe main indicator used to measure plants energy performance is the mean specific total energy consumption (TEJ) measured in GJt of product transferred to stock As the table below shows this figure is obtained by adding together heat consumption (NGJ) and electricity used (EEJ)
Parameter ndash Definition Unit of measurement
2012 2013 2014 2015 2016
NGJ Mean specific natural gas consumption in relation to the unit of weight of finished product transferred to stock
GJt 557 571 576 578 598
EEJ Mean specific electricity consumption in relation to the unit of weight of product transferred to stock
GJt 111 108 111 108 107
TEJ Mean total specific energy consumption in relation to the unit of weight of product transferred to stock
GJt 668 679 686 685 705
Self-generated electricity as a proportion of consumption
67 68 62 65 75
With two cogeneration plants (for the combined in-house production of heat and electricity) and 16000 msup2 of photovoltaic panels the company certainly sets a new benchmark for the entire ceramic tile industry 2016 saw the replacement of the Fiorano turbine set (the main component of the cogeneration plant) while the one in Mordano was kept in operation 247 factors which led to a 10 increase in in-house electricity production in relation to consumption To provide a clearer idea of the scale of the achievement the amount of electricity the company generated in-house in 2016 (849873 MWh) would cover the average annual consumption of about 37000 households (With consumption per household of 229 MWh - data from the latest ISTAT survey in 2012ndash calculated on the Italian average)
Photovoltaic Plant
kWp kWh produced kg of CO2 not emitted
270021 15937250 8462680
Good Practice
The head office organizations are also optimizing paper and energy consumption In addition to issuing and distributing the energy saving handbook for its offices the company is also trying to maximize savings on the raw material used and specifically the use of paper Internally the company only purchases reams of paper which carry environmental certification and the paper used in offices is collected separately for proper disposal Externally the company distributes a system of merchandising products made mainly from recycled paper and encourages the gradual digitization of its marketing tools as well as publishing all its catalogues in digital format on its Internet sites Florim offers its distributor companies an innovative digital touch screen tool with the pdf versions of the catalogues and other tools for the final consumerIn 2016 Florim decided to adopt a new payslip distribution procedure introducing an online processing system As well as providing employees with new functions and greater operating flexibility thanks to this system the company no longer prints out the monthly payslips saving paper ink and energy The scheme initially involving all office workers has the ambitious target of also including the staff of the Fiorano and Mordano plants
The 16000 square meter photovoltaic plant received recognition from GSE (Energy Management Services) as one of the most innovative installations of its type and from its commissioning (October 2011) up to December 2016 it produced the following results
2016 Sustainability Report 25
Atmospheric Emissions
The industrial facility emits greenhouse gases basically CO2 from the following main sourcesbull combustion from the burning of fossil fuels (such as natural gas)bull processes from the minerals in the raw materials any organic matter in the clays used and any organic additives in tile body mixes
In order to comply with Directive 200387EC (ETS - Emission Trading Scheme) Florim has been reporting and certifying its CO2 emissions since 2013
CO2 emissions 2013 2014 2015 2016
CO2 emissions (t) 102728 103462 111862 132960
CO2 emissions (t) Finished product (t) 033 033 033 035
Emissions from the production cycle 2013 2014 2015 2016
Particulate material (gmsup2 finished product) 223 130 098 118
Lead (gmsup2 finished product) 000 000 000 000
Fluorine (gmsup2 finished product) 014 018 013 012
The increase in CO2 is due mainly to the large increase in the square meters produced (+ 8) and the 247 use of the cogeneration plant However it should be noted that the cogeneration plant provided a 10 increase in in-house electricity generation with lower CO2 emissions than electricity purchased from the grid produced mainly using fossil fuels (source ISPRA Fattori di emissione atmosferica di CO2 e sviluppo delle fonti rinnovabili nel settore elettrico Rapporti [Atmospheric CO2 Emission Factors and Development of Renewables in the Electricity Sector Reports] 2122015)The ratio between CO2 emissions and tons of finished product produced increased because in 2016 the sale of spray-dried material to other companies rose compared to the previous year (emissions from this phase are included in the emissions count but there is no corresponding output of finished product)
In a change from previous years the new GRI-G4 guidelines also require reporting of nitrogen oxide and sulphur oxide emissions Nitrogen oxide (NOx) emissions are within the limits permitted under the integrated environmental authorisation Sulphur oxide (SOx) emissions are not reported here since this figure is not required by the IEA
Transport
The materiality study reveals that transport is a significant factor for both stakeholders and Florim itself The company is not able to measure the impact of transportation of finished product on the local area since all shipments are ex-works However Florim which has been introducing electric vehicles to replace its oldest most obsolete unleaded petrol forklifts for years now has further optimized the handling of materials thanks to the new highly-automated logistics hub created at the via Canaletto location In 2016 about 53 of the vehicles used on the companys premises were electric with no direct greenhouse gas emissions
2016 Sustainability Report26
CEDIT ndash Creative Composition
2016 Sustainability Report 27
Workforce Composition
In 2016 the workforce included 27 people with disabilities 6 women and 21 menBearing in mind the job descriptions arising from the specific industrial sector the breakdown between men and women is in line with the industry average Male office workers and executives earn an average of 10 more than women for jobs of equal responsibility Among blue-collar workers the difference is 7 The company had a total of 29 foreign employees 24 at Fiorano and 5 at Mordano
Manager Executive Office worker
2013 2014 2015 2016 2013 2014 2015 2016 2013 2014 2015 2016
Women 2 3 3 3 3 1 1 1 137 142 133 149
Men 18 21 20 18 21 24 25 28 127 132 128 132
Total 20 24 23 21 24 25 26 29 264 274 261 281
Office ancillary Blue-collar worker Total
2013 2014 2015 2016 2013 2014 2015 2016 2013 2014 2015 2016
Women 18 16 25 19 226 219 212 196 385 381 375 368
Men 64 68 79 64 376 358 356 377 607 603 607 619
Total 82 84 104 83 602 577 568 573 992 984 982 987
Social Responsibility
Employees amp Corporate welfare
Its employees are the heart and soul of Florim they provide its character and its DNA Since 2009 when the current major economic crisis began Florim has undertaken a number of income support programs for its workforce Below we summarise some of the ongoing programmes and others run in 2016bull Ending of the Income Support Program for the Mordano plantbull Agreement with Sassuolo Hospital under which Florim employees and their family members enjoy discounts and shorter waiting times for specialist examinations and outpatient diagnostic tests performed on a private basisbull Special agreements with local health facilitiesbull Tax advice at special rates bull Special terms for banking services with financial consultants on-sitebull Discounts on the purchase of Florim products for employees homesbull Free entry to the Peggy Guggenheim Collection in Venice for employees and concessions for family membersbull Free provision of water and mineral salts in the plants during the summerbull Distribution of fuel vouchers to employees for the Christmas holidays
Summer Play Schemes and Cregraveches
In 2016 the summer play schemes for the children of employees at Fiorano and Mordano were continued for the fifth year in succession Seven different centers across the area between Modena and Bologna hosted 85 children (twice the number of the previous year) the company paid the fee for two weeks attendanceWhats more since 2013 the company has negotiated special terms with local cregraveches which now offer a number of places for employeesrsquo children at a reduced fee
2016 Sustainability Report28
Human Resources Management Policies
In July 2015 on renewal of the in-house supplement to the national employment contract the Management introduced a new phase in its relations with the Trade Unions with the aim of continuing and improving the good relationships enjoyed for decadesThe new company contract applied for all employees at the Fiorano headquarters includes more facilitations for part-time working the willingness to allow flexitime where feasible and the commitment to invest in staff training in order to generate full benefits from intellectual capital The company and the trades unions agreed on a plan to improve efficiency fundamental for maintaining the current level of competitiveness by establishing improvement in Production Efficiency and EBITDA as criteria for the payment of the new Performance Bonus The individual Attendance Score is considered together with these parameters The 2016 Performance Bonus in its first year of application was 20 higher than that paid in 2015 In addition in response to employees requests the Company increased the number of approved canteens extending the choice available and also introduced weekly laundering of work clothing for all production workersWith regard to applications for severance pay advances the Company confirms its commitment to continuing the policy implemented so far
Training
Florim believes that in-house training plays a key role in the companyrsquos development and provides a tool for stimulating and fulfilling the potential of its human resourcesMore than 10600 training hours were provided in 2016 to 847 people with an average of more than 11 hours of training per employee New projects included a 6-month on-line English language course which attracted a large number of participants and two highly structured training courses for the sales division and the communication department A retraining program for workers at the Mordano plant was also completed it comprised 4 technical courses attended by 31 people for an average of 13 hours per person Another new entry for 2016 was an innovative procedure for acquiring information about training needs using an on-line questionnaire available to all employees as well as line managers specific recommendations The Master in Florim project is discussed in depth in the specific section
Health and Safety
Florim was the first Italian ceramics manufacturer to receive BS OHSAS 18001 (Occupational Health amp Safety Assessment Series) certification from TUumlV this international standard certifies the implementation of an internal management system oriented towards occupational health and safetyThis major award confirms the companys constant commitment to the well-being of its employees Every year in addition to engineering inspections and machinery maintenance a number of hours of safety training are organised to raise awareness among workers and supervisors Specifically in 2016 2849 hours were dedicated to safety training and a significant reduction in injury rates was recordedMoreover BLSD refresher courses are continuously held for the team of Florim employees trained in first-aid operations and the use of the defibrillators available on site
2012 2013 2014 2015 2016
Number of workplace injuries 63 62 74 56 43
2016 Sustainability Report 29
The Master in Florim organized for the fourth time in 2016 is a vocational training project which aims to bridge the gap between education (high school or university) and the world of work The program which is one of the companys Social Responsibility projects sets out to help young people to get to know the company through a well structured work experience plan It offers a distinctively northern European approach with a method which alternates classroom teaching with internships in the various areas of the company Participants new university or high school graduates specialising in various subjects all below 30 years of age are therefore able to gain hands-on experience of all Florim departments from RampD to the production process and product distribution for an all-inclusive vision The MASTER courses ambitious aim is to match the individual participants talents with the companys real needs At the end of each edition the company hires all or some of the selected candidates enabling it to acquire new skills new experiences and new energy
Master 40 in figures
20 young people taking part6 months of training13 external lecturers264 hours of classroom teaching392 hours of practical training4 company visits (Ferrari Tetrapak Cremonini and Ducati)50 days of work experience on rotation involving 15 departments1 month of project work
The projects prestige is enhanced by its economic context since Florim pays the young participants for the entire period and its aim is to deal with the thorny problem of youth unemployment The Master has won approval from various faculties at major Italian universities The project was also a winner in the Emilia-Romagna Regions 2016 awards for Corporate Social Responsibility projects run in the local community A prize in the ldquoBusiness and Educationrdquo category was assigned to the Master project which aims to give young people the skills required for sustainable development
Master in Florim
2016 Sustainability Report
Watch the videoof the 4th edition
2016 Sustainability Report30
Local Community amp Culture
This chapter describes a number of programs Florim runs for the local community in the area where it originated and where it has been working for more than 50 years
Politecnico di Milano
Since the 20052006 academic year Florim has been a partner sponsor of a large number of Postgraduate Courses run by POLIDesign the Politecnico di Milano consortium which organizes its Master Degree coursesAlso in association with POLIDesign since 2012 Florims Milan showroom has hosted several design events for architects and designers of every nationality
Aziende modenesi per la RSI
ldquoAziende Modenesi per la RSIrdquo an independent open inclusive association of companies in the Modena area which believe in the principles and values of Corporate Social Responsibility was established by public deed on 30 September 2014 with Florim as a founding member Florim hosts the associations member companies every year to discuss the various topics proposed
Premio Lucchese
The Premio Lucchese presented for the twenty-ninth time in 2016 was established in memory of Giovanni Lucchese and consists of scholarships awarded to students at the ldquoAlessandro Voltardquo Technical High School in Sassuolo who graduate with full marks The award ceremony held every year at the Florim Gallery in association with Societagrave Ceramica Italiana of Bologna includes a talk given by a leading personality on a topic of current interest to an audience of eager young listeners
Intrapresaelig Collezione Guggenheim
As befits a company that combines the values of its local community and historic and artistic heritage with a flair for research and innovation Florim recently launched a partnership with the Peggy Guggenheim Collection Since its foundation Florim has always had a unique ability to incorporate the true cultural significance of its industry in its business model and by this project once again confirms its commitment to promoting art by supporting a collection of extraordinary beauty
Fondazione Ing Giovanni Lucchese
More than thirty years after the untimely death of Giovanni Lucchese ndash founder of what was then Floor Gres currently Florim ndash in 2013 his family established a Foundation in his name which since then has funded organizations and associations that support families in need in the ceramics district The Foundation also supports a variety of projects such as the summer play scheme for employees children the Premio Lucchese and the Florim HealthampTraining Center described in more detail below
The main projects undertaken in 2016 include the funding of the purchase of 10 defibrillators for the Municipality of Fiorano and the contributions made to the purchase of paediatric ambulances for the local area and to support the Parish charitable organizations and social services in the district
Watch the Premio Lucchese video
The project run jointly by Florim and Sassuolo Hospital adopts a completely new model combining industrial culture and healthcare in an original way to benefit the local people and community thanks to the coming-together of a ceramic coverings manufacturer and the public-private joint venture Ospedale di Sassuolo Spa Florim HealthampTraining is the synthesis of this idea an experimental center which promotes local training for healthcare and other staff health education and information advanced medical simulation and research
The Center
On the main Florim site and opened on 16 April 2014 the Center is 550 square meters in area and contains a modular lecture theatre able to seat over 100 people and a number of classrooms for seminars and lessons At its heart is a state-of-the-art control room crammed with technology that operates dummies capable of reproducing human functions of all kinds Advanced simulation is a major aid to maintaining the skills of emergency healthcare workers with a particular focus on pediatric and neonatal resuscitation
Health meetings
Designed as a space for community use the Center also aims to become a place where all sections of the population - workers schoolchildren parents teachers volunteers and even just members of the public - can learn about preventive health care and acquire first aid skills After the distribution to Florim employees of a questionnaire surveying their training needs and preferences a Center Scientific Committee of Sassuolo Hospital medical personnel was appointed and drew up a plan of bi-monthly ldquoHealth meetingsrdquo All meetings are led by doctors with expertise in the various topics who answer the many questions from the audience at the end of their talks Between its opening and the end of December 2016 the Center hosted 13 meetings on a variety of topics attended by about 1000 people including employees their family members and the community at large
Healthcare discounts for Florim employees
The project also includes a major welfare program for all Florim employees and their family members entitling them to discounts and shorter waiting times for specialist examinations and outpatient diagnostic tests performed on a private basis
American Heart Association
The world-famous American Heart Association (AHA) is the oldest and most respected American voluntary organization dedicated to the fight against cardiovascular diseases and strokes In 2015 the AHA via the Simaid International Training Center named the Florim HealthampTraining Center as an Authorized Training Site for basic and advanced cardiopulmonary resuscitation
Florim HealthampTraining Center
2016 Sustainability Report
Watch the Health amp Training Center video
2016 Sustainability Report32
Product Responsibility
Here we summarize the concept of Made in Florim denoting a product that encapsulates the companys core values passion innovation a constant commitment to improvement and corporate social responsibility
Florim product certifications
CE Marking guarantees the user that the materials purchased meet the requirements of the relevant regulations and that the characteristics concerned are virtually unchanged for all production lots It is a declaration of conformity which protects the consumerrsquos safety The presence of the CE Marking on packaging guarantees that Florim products comply with the relevant regulatory requirements
Ecolabel (EC Regulation 662010) is a certification granted to products which comply with ecological and performance criteria set at a European level concerning raw material extraction supplier selection manufacturing processes packaging distribution use and disposal The certified Florim collections are Architech Ecotech Reverse Walks 10 by Floor Gres and Pietra del Nord under the Rex brand
Several ceramic tile collections bearing the Florim brands have earned certification from Bureau Veritas for their pre-consumer recycled material content These articles are therefore fully eco-compatible and can meet the environmental sustainability requirements imposed by many international certifications
Florim is a member of the US Green Building Council (USGBC) the most important association which promotes the reduction of buildings negative impact on the environment To allow the effective monitoring a projects level of sustainability the USGBC has developed a certification procedure for the development of sustainable buildings which assess and certifies the sustainability of a building in its entirety Florim materials are able to help to gain LEED points in a number of areas (data available on the Florim brand websites)
Florim has achieved the prestigious Greenguard certification for all its products Issued by the American body UL Environment this certification aims to reduce indoor pollution caused by interior design systems and materials UL Environment thus aims to protect health by improving air quality and reducing peoples exposure to chemicals and other pollutants Florim has also achieved Greenguard Gold Certification which imposes even stricter limits to confirm that a given product is suitable for use even in locations such as schools and health care facilities
The EPD or Environmental Product Declaration is a document which defines the environmental impacts arising from production In 2016 Florim participated in the study - certified by the German organization IBU - performed on the ceramics industry average data which aims to raise international awareness of the excellence of the environmental standards achieved
Beyond the standardsMade in Florim products are a guarantee of safety highly innovative content and eco-friendliness The people who produce them work in a safe place and in ethically sustainable conditions Due to their nature all Florim products are guaranteed free from pollutant emissions do not accumulate electrostatic charges are frostproof and completely inert and are undamaged by contact with flames The Groups Internet sites and collection catalogues contain the technical data sheets which detail the product information (slip-resistance breaking strain abrasion resistance etc) for every collection as well as its recycled material content with the relative certificates
During the period under consideration no banned products were placed on the market and the company was not found guilty of any breaches of the law with regard to data protection or its marketing and communication activities
EU Ecolabel nr IT2104
2016 Sustainability Report 33
Quality SystemThe current ISO 9001 standards define quality as the ability to satisfy explicit or implicit needs via a product or a service A Quality System implies constant improvement of company processes in order to realise products that always satisfy the customerrsquos needs Further to the 2016 audit Florim obtained the renewal of its UNI EN ISO 90012015 certification for the design manufacture and sale of all categories of ceramic tile
Objective Indicator 2012 2013 2014 2015 2016
Continual improvement of control of the production process
Percentage of First Grade Product ()
924 943 942 952 956
Quality rate () 883 905 903 905 909
Scrap rate () 44 41 42 42 49
Productivity (sq mhour) 186 188 186 190 200
Improvements in sales performance and customer satisfaction
Innovation rate () 330 296 367 455 364
Coverage () 795 714 814 813 816
Total portfolio shippable within one month ()
911 837 888 893 897
Optimization of range and stocks
Obsolete stock () 172 126 165 120 69
Stock turnover rate () 13 15 16 15 16
Gradual elimination of disputes complaints and claims concerning service
Square meters affected by complaints ()
17 12 08 12 09
Complaints by number of order items ()
10 11 11 10 10
Gradual improvement in staff skill levels
Employee turnover () 15 23 04 04 12
KeyPercentage of first grade product percentage ratio between the square meters of first grade products and the total square meters transferred to stockQuality rate percentage ratio between the square meters of first grade product transferred to stock and the square meters leaving the pressesScrap rate percentage difference between square meters of material leaving the presses and square meters of product actually transferred to stockProductivity ratio between the square meters transferred to stock and the total hours worked in the plantInnovation rate ratio between square meters sold belonging to series designed in the last three years and total square meters sold Florim uses this indicator to assess the effectiveness of its design process in terms of salesCoverage percentage ratio between square meters available for immediate shipment and the square meters on orderTotal portfolio of orders shippable within one month percentage ratio between the square meters which can be shipped in 30 days and the square meters on orderObsolete stock percentage ratio between the square meters of substandard discontinued produce and the total square meters in stock Stock turnover rate ratio between the square meters sold and the square meters in stockSquare meters affected by complaints percentage ratio between the square meters affected by complaints and the square meters soldComplaints by number of order items percentage ratio between the number of complaints and the number of items orderedEmployee turnover percentage ratio between the number of employees leaving the company and being replaced and the workforce at the start of the year
2016 Sustainability Report34
Casamood - Neutra 60 Collection
2016 Sustainability Report 35
OUR COMMITMENTS
The promises we keptIn our last Sustainability Report we committed to achieving a large number of objectives the following are the outcomes we attained
Relaunch of the ldquoCEDIT ndash Ceramiche drsquoItaliardquo brand OBJECTIVE ACHIEVED
Launch of the FLORIM stone brand OBJECTIVE ACHIEVED
Installation of a new latest-generation kiln at the Mordano plant OBJECTIVE ACHIEVED
Transfer of the Moscow showroom to new premises SCHEDULED FOR 2017
Creation of a new gatehouse at the Mordano plantOBJECTIVE POSTPONED TO GIVE PRIORITY TO THE CONSTRUCTION OF THE NEW FACTORY
Introduction of ERP system at Florim USA OBJECTIVE ACHIEVED
Installation of a new spray dryer and raw material handling system at Florim USA
OBJECTIVE ACHIEVED
Economic Responsibility
Renewal of certification of the Florim environmental and energy management system
OBJECTIVE ACHIEVED
Award of new certifications for collections manufactured with a high recycled material content
OBJECTIVE ACHIEVED
Continuation of work to reduce environmental impacts at Mordano especially with the reduction of energy costs
OBJECTIVE ACHIEVED
Continuation of the work to remove asbestos cement roofing materials at the Mordano plant
OBJECTIVE ACHIEVED
Expansion of the system which conveys rainwater to the treatment plant OBJECTIVE ACHIEVED
Reduction of the noise emissions of the air filtering systems OBJECTIVE ACHIEVED
Increase of recycling targets through constant awareness-raising amongst all staff and optimisation of recycling facilities
OBJECTIVE ACHIEVED
Continuation of replacement of the diesel forklift trucks for use on outdoor yards with electric vehicles
OBJECTIVE ACHIEVED
Environmental Responsibility
Running of fourth edition of Master Florim course with new procedures OBJECTIVE ACHIEVED
Creation of an internal refreshment area for the Fiorano office staff OBJECTIVE ACHIEVED
Improvement of corporate welfare through the activation of new free services and discounts tailored to employees needs
OBJECTIVE ACHIEVED
Continuation of the health meetings for the local community in association with Ospedale di Sassuolo Spa
OBJECTIVE ACHIEVED
Organization of new community events at Florim Gallery OBJECTIVE ACHIEVED
Organization of Florim Family Day 2016 A PARTY WAS ORGANISED FOR EMPLOYEES
Social Responsibility
2016 Sustainability Report36
The targets we set for ourselvesWe aim to achieve the following objectives in 2017
Economic Responsibility
Construction of a new factory at Mordano to produce large slabs
Launch of the project to unite the Florim spa sales organizations
Total restyling of the corporate and brand Internet sites
Launch of the HUB project - Intranet CRM Marketing Automation
New plants at Florim USA a press two sorting lines a polishing and rectifying line
New working spaces and cloakrooms for technical staff at the American plant
Environmental Responsibility
Purchase of a new cogenerator for the Mordano plant
Introduction of a new rainwater collection system at Fiorano
Land reclamation project involving covering of the Rio Spezzano stream at Fiorano
Implementation of new software for continual monitoring of energy impacts at Fiorano
Modernisation of the compressor room to improve energy impacts at Mordano
Increase of recycling targets through constant awareness-raising amongst all staff and optimisation of recycling facilities
Continuation of replacement of the diesel forklift trucks for use on outdoor yards with electric vehicles
Social Responsibility
Improvement of corporate welfare through the activation of new free services and discounts tailored to employees needs
Continuation of the health meetings for the local community in association with Ospedale di Sassuolo Spa
Organization of new community events at Florim Gallery
Organization of a new event for Florim spa employees
New offices for hospitality and events staff at Fiorano
2016 Sustainability Report 37
FLORIM USA
Profile and Economic ResponsibilityFlorim USA with registered office at Clarksville - Tennessee - and its subsidiary Florim Solution Inc have been part of the Florim Group since 2000 The Florim USA manufacturing plant one of the largest most technologically advanced in the United States produces porcelain stoneware tiles for the residential market and undertakes commercial projects in North America During the last few years Florim USA has implemented a growth and process optimization strategy which has generated significant technological progress with more innovations planned for the future The strategy adopted will put Florim USA at the worldwide state of the art in porcelain stoneware tile manufacture
In 2016 of the 18 million USD invested 147 was allocated for installation of a latest-generation raw material handling system and a large spray-dryer with an innovative sorting system Improvements were made to other parts of the process to increase their efficiency leading to a further reduction in emissions and scrap rates Additional investments are planned during 2017 to continue this dual trend of rising production with mitigation of environmental impact
The new Florim Flagship Store in New York (152 Madison Avenue 32nd Street)
2016 Sustainability Report38
Environmental ResponsibilityFlorim USA implements the same environmental policy as Florim and is committed to achieving the following objectives
bull reduction of the energy used in the production processbull improvement of the waste management process with a focus on recovery and reusebull introduction of new more eco-efficient technologiesbull adoption of integrated management systems
Florim USA has been pursuing a strategy of careful management of its operations and environmental impact for a number of years Here we summarise the main actions taken and the results achieved in 2016
bull installation of a latest-generation spray-dryer in 2016bull installation of an innovative raw material handling system in 2016bull 100 recycling of wastewater within the processbull optimisation of the management of water bottles with elimination of about 34200 of them per annumbull reuse of almost all production scrap (+99)bull 157000 kg of cardboard recycled in 2016bull award of two different types of product certificationbull 9300 kg of plastic recycledbull recycling of 17 complete trucks of pallets
Environmental Projects and Awards
Florim USA has received Clarksville Montgomery County Green Certification (CMCGC) CMCGC is a program designed to help companies learn and implement best practices in the area of environmental stewardship to sustain the local communityrsquos resources through a series of free workshops taught by local environmental specialists Since 2014 Florim has allocated some of its Environment Managers time for the running of these workshopsFlorim USA earned this green company certification thanks to a large number of projects first and foremost the one which eliminated the use of disposable water bottles replaced with individual reusable bottles provided by the company and a series of fill-up stations About 34200 bottles are removed from the waste cycle every year
During the latest phase of its plant optimization Florim USA has implemented a thorough construction material reuse policy In the various stages of demolition of the old plants including the old storage silos the concrete debris was recovered and reused in other construction worksThis project alone generated 11500 tons of recycled aggregate as well as several hundred tonnes of metal sold to a recycling firm
Environmental management system and eco-compatible products
Florim USArsquos products help builders and designers to meet the requirements for sustainable buildings as defined by the United States Green Building Council (USGBC) through the LEED Green Building Rating System This protocol evaluates and certifies the environmental sustainability of a building as a unit from its design to its day to day management To gain LEED credits many of the Florim USA product lines contain a significant percentage of recycled material (40 or more)This feature contributes to an increase in the LEED score in the projects where these products are installed In 2014 Florim USA together with a large number of other US tile manufacturers and the Tile Council of North America drew up a type III environmental product declaration (EPD) certified under the ISO 14025 standard This ceramic tile life-cycle analysis enables Florim USA products to gain LEED points under the new LEED v4 protocol
2016 Sustainability Report 39
Water use (gallonsper million square feetof finished tiles)
208137 216246 204962 195280 194268
Energy use
2012 2013 2014 2015 2016
Cubic feet of natural gas per million square feet of finished tiles 9343383 9149721 8331170 8390503 8380000
kWh per million square feet of finished tiles 510972 491171 450594 465976 490300
Emissions
Particulate material lt 21024 tonnes per annum
SO2 (sulphur dioxide) lt 1674 tonnes per annum
VOC (volatile organic compounds) lt 1245 tonnes per annum
NOx (oxides of nitrogen) lt 1501 tonnes per annum
Environmental performance indicators ndash summary
The following are the main environmental indicators related to the impact and performance of Florim USA during 2016
Pre-consumer recycled material
Its internal material recycling processes enable the company to minimise its environmental impact since most of the material which would otherwise be sent to landfills or other waste treatment centers is reusedbull Wastewater is entirely recycled within the production process without any discharge into the municipal drainsbull The material in the collection bags from the tile body and glaze preparation areas the press and glaze application is entirely recycled within the processbull All scrap fired tiles are entirely recycled within the processbull 157000 kg of cardboard was sold to an external recycled material dealerbull 17 trucks of unusable wooden pallets were sold to a pallet regeneration companybull About 9300 kg of waste shrink-wrap plastic film was recovered and recycled
Post-consumer recycled material
About 82000 kg of glass was removed from the flow of waste destined for the local landfill and recycled within the process Florim USA has signed an agreement with the local landfill for consignment of all the glass it handles which is collected and set aside for recycling
Water use disposal and reuse
The water used during the production process is recycled continually therefore no water is discharged into the municipal drains
The 2016 emissions figures are in line with those for previous years well below the standards laid down
Water use 2012 2013 2014 2015 2016
Water use (gallons per million square feet of finished tiles) 216246 204962 195280 194268 203928
2016 Sustainability Report40
Social Responsibility
Employees
The Florim USA workforce comprises 348 staff employed at the production site the Clarksville and Nashville outlet stores and the Florim Solution offices Of the 348 employees 273 are blue-collar workers and 75 office staff 5 employees are Italians on secondment to the United States Florim USA offers a number of benefits to full time employeesbull health and dental care insurancebull Vision insurancebull life insurance for employees and optionally for family membersbull temporary and permanent disability supportbull employee pension plan
2012 2013 2014 2015 2016
Workplace injuries 50 41 22 29 27
The Employee Assistance Program (EAP) also offers support to employees and their families in the event of psychological difficulty or other problems that can have a negative impact on their quality of life Florim USA supports all the costs of the program
Equal opportunities
Florim USA provides equal opportunities in all employment practices to all qualified employees and applicants regardless of race colour religion gender national origin age disability or membership of the armed forces or any other category protected by federal state or local laws
Health and safety
FLORIM USA is committed to ensuring a safe healthy workplace for all employees It therefore replaces old and obsolete equipment with new technologically more modern machinery and updates safety plans as new information gradually becomes availableAs well as an internal supervisor Florim USA has also appointed a health and safety committee which constantly monitors the plans effectiveness and makes any changes requiredThere are currently 20 plant employees who hold CPRfirst aid qualifications They occupy a variety of positions and work different shifts within the plant and have volunteered to attend training courses sponsored by the company for the award of these qualifications
Training
In 2016 every Florim USA employee attended an average of about 25 hours of training The training provided covered the operating procedures for the new equipment the main safety plans and the procedures for use of existing equipment for new employeesAll new staff undergo specific training for their department focusing on the safety-related aspects of the department concerned as well as more generalized safety training
Some of these themes includebull safe correct use of forklift trucksbull training on work in confined spacesbull shutdownwarning procedures and safe electrical practicesbull safe lifting procedures
2016 Sustainability Report 41
Florim USA ndash (Clarksville Tennessee)
For employees wishing to continue their education Florim USA offers assistance through the Educational Assistance Program It provides aid with the cost of education and textbooks and is available for any employee wishing to study for a technical qualification a diploma or a degreeThe plant staff training and education plan also includes various training schemes at Florim Italy where employees are instructed in the use of new equipment before it is installed at the American plantThroughout 2016 Florim USA will continue to provide a free e-learning course on its website for architects engineers and contractors (AEC) to improve their knowledge of sustainable porcelain stoneware tiles
Employee welfare activities
Florim USA employee picnic - In 2016 the company once again held its annual picnic for employees offering them a wide variety of foods games activities and live shows in an event which provided an unforgettable days enjoyment Within the event participants received prizes in the form of vouchers and gifts
Employee anniversary dinner - 2016 again saw the usual dinner to honour Florim USA employees with 5 10 15 20 or more years of service A special evening event was held in the presence of the Chairman and the other managers to celebrate the loyalty and hard work these employees have contributed during their careers with the firm
2016 Sustainability Report42
Local Community
During 2016 Florim USA continued to provide its support to a number of projects in its local areaSome of the main projects include
Scholarships - As part of its work to support the local community Florim has an established scheme which awards scholarships to deserving students at the Austin Peay State University in memory of Florim Group founder Giovanni Lucchese In December 2016 a delegation of Florim representatives attended a scholarship presentation lunch at the Austin Peay State University hosted by the President of the University
Montgomery County Green Certification Program - Florim USA staff actively participate in the Montgomery County Green Certification Program which aims to help companies learn and implement best practices with regard to safeguarding the environment and environmental resources
Donations - In 2016 the company again made a large number of donationsbull book collection for the Austin Peay State University Employees made a generous donation of used books in good condition for children and young people of the APSU in the hope of further promoting the education of future generationsbull to Community Cares the national organization that promotes the acceptance and social inclusion of individuals with Downs Syndromebull to the Aspire Clarksville Foundation a 501(c)(3) charitable foundation whose mission is to continuously improve the economy and the livability (quality of life) of the community by attracting significant capital investment and expansion by businesses and corporations thereby creating better opportunities and higher paying jobs for residentsbull to the Alzheimerrsquos Association a non-profit voluntary organization dedicated to the care and support of Alzheimers Disease sufferers and research into the condition Its aim is to eliminate the disease through the advancement of research to provide and enhance care and support for all affected and to reduce the risk of dementia through the promotion of brain health
Other activities - Every year Florim USA participates in the United Way Drive initiative to support local non-profit organizations which provide economic assistance and psychological support to persons in difficulty
Florim USA provides regular support to the Salvation Army by collecting canned foods for persons in needIn 2016 the company again organised a canned food collection for Manna Cafeacute in Clarksville TN Manna Cafeacute is a local non-profit organization based in Middle Tennessee with the primary mission of meeting peoples fundamental need for food before encouraging them to permanently change their lives for the better More than 15 of the population in Montgomery County are affected by food insecurity (about 28000 people) The percentage of children affected is about 215 a third of whom are excluded by income from federal programs such as free school mealsFinally donations were made tobull American Lung Association the leading organization working to save lives by improving lung health and preventing lung disease through research and educationbull Cheer for a Cure an organization that gives money directly to afflicting families who have a loved one suffering from cancer and need assistance to alleviate the added financial stressbull Habitat for Humanity Since 1992 Habitat for Humanity in Montgomery County Tennessee has worked with 93 low-income families with more than 210 children to revitalise various parts of Clarksville-Montgomery County by building new homes
2016 Sustainability Report 43
Quality SystemFlorim USA works under a Quality System certified to UNI EN ISO 9001 standards The following are some of the figures in brief
Objective Indicator 2012 2013 2014 2015 2016
Optimisation of control of the production process
Percentage of First Grade Product ()
932 917 940 949 9510
Quality rate () 883 857 893 906 909
Scrap rate () 56 65 48 45 45
KeyPercentage of first grade product ratio between square feet of first grade material and total square feet transferred to stockQuality rate ratio between square feet of first grade material transferred to stock and square feet pressedScrap rate ratio between square feet pressed and square feet of product actually transferred to stock
Other ActivitiesFlorim USA and trade shows
In 2016 Florim USA participated at a number of shows and events including Coverings the AIA Tennessee Convention Hardscape North America Total Solutions Plus Neocon International Pool - Spa and Patio Expo These events targeted at the various categories of industry professionals such as dealers and designers gave Florim USA the opportunity to present its new range of indoor and outdoor products
Design Center
In December 2015 Florim USA opened a design center showroom in Nashville (TN) in a strategic location close to the airport and the city center With a spacious area to host individual CEU presentations and workshops this design center has the potential to be a major resource for local architects In 2016 it was also awarded the ldquoOutstanding Boothrdquo booth prize at the 33rd edition of the Annual Home Decorating and Remodeling Show The location is the ideal place for sharing ideas finding inspiration and putting professionals and architects in touch with each other
Florim Nashville Design Center
2016 Sustainability Report44
GRI International Sustainability Indicators SDGsThe information below illustrates the correspondence between the Florim (Italian companies) 2016 Sustainability Report the GRI-G4 guidelines and the icons of the Sustainable Development Goals (SDGs) definitively adopted by the United NationsA description of the SDGs is available at wwwglobalcompactnetworkorg
GRI indicators
Description Page Reference to SDGs
1 Strategy and Analysis
G4-1 Statement from the most senior decision-maker of the organization 5
2 Organization profile
G4-3 Name of the organization 2
G4-4 Primary brands products andor services 9
G4-5 Location of the organizations headquarters 9
G4-6 Number and names of the countries where the organization operates 9
G4-7 Nature of ownership and legal form 14
G4-8 Markets served 9
G4-9 Scale of the organization 8 8
G4-10 Significant changes regarding size structure or ownership 8
G4-11 Employees covered by National Collective Bargaining Agreement 27
G4-12 Describe the supply chain 16
G4-13Significant changes regarding the organizationrsquos size structure ownership or its supply chain
Reporting process
launched
G4-14 Precautionary principle 22
G4-15 List of external commitments in which the company is involved 22 32 33
G4-16 Associations or interest groups in which the company is involvedwwwflorimit gt
about us gt partnerships
3 Identified material aspects and boundaries
G4-18 Process used to define the report content 6
G4-19 Material aspects 16
G4-20 Boundaries of each material aspect 6
G4-21 Boundaries of each material aspect outside the organizationPartial reporting
(pages 6 16)
G4-22 Explanation of the effect of any restatements of information provided in previous reports 6
G4-23Significant changes from previous reporting periods in the scope boundaries or measurement methods
6
3 Stakeholder engagement
G4-24 List of stakeholders 15
G4-25 Identification of stakeholders 15
G4-26 Stakeholder engagement 6 16
G4-27 Key topics and concerns that have been raised through stakeholder engagement 16
4 Boundary of the Report
G4-28 Reporting period 6
G4-29 Date of publication 2
G4-30 Reporting cycle 6
G4-31 Contacts and addresses for additional information 46
5 GRI Content Index
G4-32 Reporting option chosen 6 7
G4-33 External assurance of ReportThe Report is not
externally assured
2016 Sustainability Report 45
GRI indicators
Description Page Reference to SDGs
6 Governance
G4-34 Governance structure 14
7 Ethics and integrity
G4-56 Values principles standards and norms of behavior 13 16
Economic performance indicators
EC1 Direct economic value generated and distributed 19 25789
EC5 Wages 27 158
EC7 Development and impact of infrastructure investments and services supported 23 24 31 257911
Environmental performance indicators
G4-EN2 Percentage of materials used that are recycled input materials 17 22 23 812
G4-EN3 Energy consumption within the organization 24 781213
G4-EN6 Reduction of energy consumption 17 24 71213
G4-EN7 Reductions in energy requirements of products and servicesPartial reporting
(page 22)71213
G4-EN8 Total water withdrawal by source 17 23 6
G4-EN10 Percentage and total volume of water recycled and reused 17 21 23 612
G4-EN11 Biodiversity 23 615
G4-EN15 Total indirect greenhouse gas emissions by weight 25 3121315
G4-EN16 Total indirect greenhouse gas emissions by weight 25 3121315
G4-EN19 Reduction of greenhouse gas emissions 8 24 1315
G4-EN21 NOx SOx and other significant air emissions 25 31215
G4-EN22 Total water discharge by quality and destination 23 6
G4-EN23 Total weight of waste by type 17 22 3612
G4-EN27 Impact mitigation of environmental impacts of products and services 23 68121315
G4-EN29 Monetary value of significant fines 22 16
G4-EN30 Significant environmental impacts of transporting products and goodsmaterialsPartial reporting
(page 25)111213
Social performance indicators
G4-LA1 Total number and rates of new employee hires and employee turnoverPartial reporting
(pages 17 27)8
G4-LA6 Workplace injury ratesPartial reporting
(page 17)38
G4-LA9 Average hours of training per year per employee 28 48
G4-LA12Composition of governance bodies and breakdown of employees according to gender age group etc
27 58
G4-LA13 Ratio of basic salary and total remuneration of women to men 27 5810
Society
G4-SO1 Operations with local community engagement 12 31 16
G4-SO3 Operations assessed for risks related to corruptionPartial reporting
(page 13)
Product responsibility
G4-PR1 Assessment of health and safety impacts for improvement 23 32
G4-PR3 Type of information about products and services required by the procedures 32 12
G4-PR5 Proceedings relating to customer satisfaction including surveys conducted to measure it 33
G4-PR6 Sale of banned or disputed products 32
G4-PR8 Number of substantiated complaints regarding breaches of privacy 32 16
2016 Sustainability Report46
Your Assessment
You are kindly requested to take a few minutes of your time to give us your assessment and any suggestions to enable us to improve future editions of our Sustainability Report
Click here to send us your feedback
To keep up to date with our business
Spazio CEDIT - interior (Milan)
wwwflorimiten
Florim Ceramiche
Florim4Architects
Florim_ceramiche
Florim Ceramiche spa
Florim Ceramiche
Florim Ceramiche
For any further information please feel free to contact our communications department comunicazioneflorimit
2016 Sustainability Report 47
Premio Lucchese - Florim Gallery (Fiorano Modenese - Modena Italy)
Intrapresaelig Guggenheim Collection - Massimo Bottura in Florim Gallery (Fiorano Modenese - Modena Italy)
Panathlon Christmas Gala - Florim Gallery (Fiorano Modenese - Modena Italy)
2016 Sustainability Report48
White Christmas Party - Florim Gallery (Fiorano Modenese - Modena Italy)
Cersaie - Mario Biondi in Florim Gallery (Fiorano Modenese - Modena Italy)
Dal buio alla luce - Social event at Florim Gallery (Fiorano Modenese - Modena Italy)
2016 Sustainability Report 49
Florim Gallery entrance (Fiorano Modenese - MO)
2016 Sustainability Report52
Florim Ceramiche spaVia Canaletto 24 - 41042 Fiorano Modenese (Modena Italy) - Tel +39 0536 840111 - wwwflorimit
2016 Sustainability Report24
Energy Management
There is no disputing that large amounts of energy are required to power the production processes of ceramic tile plants with consequent direct and indirect impacts on the local area and the environmentThe main indicator used to measure plants energy performance is the mean specific total energy consumption (TEJ) measured in GJt of product transferred to stock As the table below shows this figure is obtained by adding together heat consumption (NGJ) and electricity used (EEJ)
Parameter ndash Definition Unit of measurement
2012 2013 2014 2015 2016
NGJ Mean specific natural gas consumption in relation to the unit of weight of finished product transferred to stock
GJt 557 571 576 578 598
EEJ Mean specific electricity consumption in relation to the unit of weight of product transferred to stock
GJt 111 108 111 108 107
TEJ Mean total specific energy consumption in relation to the unit of weight of product transferred to stock
GJt 668 679 686 685 705
Self-generated electricity as a proportion of consumption
67 68 62 65 75
With two cogeneration plants (for the combined in-house production of heat and electricity) and 16000 msup2 of photovoltaic panels the company certainly sets a new benchmark for the entire ceramic tile industry 2016 saw the replacement of the Fiorano turbine set (the main component of the cogeneration plant) while the one in Mordano was kept in operation 247 factors which led to a 10 increase in in-house electricity production in relation to consumption To provide a clearer idea of the scale of the achievement the amount of electricity the company generated in-house in 2016 (849873 MWh) would cover the average annual consumption of about 37000 households (With consumption per household of 229 MWh - data from the latest ISTAT survey in 2012ndash calculated on the Italian average)
Photovoltaic Plant
kWp kWh produced kg of CO2 not emitted
270021 15937250 8462680
Good Practice
The head office organizations are also optimizing paper and energy consumption In addition to issuing and distributing the energy saving handbook for its offices the company is also trying to maximize savings on the raw material used and specifically the use of paper Internally the company only purchases reams of paper which carry environmental certification and the paper used in offices is collected separately for proper disposal Externally the company distributes a system of merchandising products made mainly from recycled paper and encourages the gradual digitization of its marketing tools as well as publishing all its catalogues in digital format on its Internet sites Florim offers its distributor companies an innovative digital touch screen tool with the pdf versions of the catalogues and other tools for the final consumerIn 2016 Florim decided to adopt a new payslip distribution procedure introducing an online processing system As well as providing employees with new functions and greater operating flexibility thanks to this system the company no longer prints out the monthly payslips saving paper ink and energy The scheme initially involving all office workers has the ambitious target of also including the staff of the Fiorano and Mordano plants
The 16000 square meter photovoltaic plant received recognition from GSE (Energy Management Services) as one of the most innovative installations of its type and from its commissioning (October 2011) up to December 2016 it produced the following results
2016 Sustainability Report 25
Atmospheric Emissions
The industrial facility emits greenhouse gases basically CO2 from the following main sourcesbull combustion from the burning of fossil fuels (such as natural gas)bull processes from the minerals in the raw materials any organic matter in the clays used and any organic additives in tile body mixes
In order to comply with Directive 200387EC (ETS - Emission Trading Scheme) Florim has been reporting and certifying its CO2 emissions since 2013
CO2 emissions 2013 2014 2015 2016
CO2 emissions (t) 102728 103462 111862 132960
CO2 emissions (t) Finished product (t) 033 033 033 035
Emissions from the production cycle 2013 2014 2015 2016
Particulate material (gmsup2 finished product) 223 130 098 118
Lead (gmsup2 finished product) 000 000 000 000
Fluorine (gmsup2 finished product) 014 018 013 012
The increase in CO2 is due mainly to the large increase in the square meters produced (+ 8) and the 247 use of the cogeneration plant However it should be noted that the cogeneration plant provided a 10 increase in in-house electricity generation with lower CO2 emissions than electricity purchased from the grid produced mainly using fossil fuels (source ISPRA Fattori di emissione atmosferica di CO2 e sviluppo delle fonti rinnovabili nel settore elettrico Rapporti [Atmospheric CO2 Emission Factors and Development of Renewables in the Electricity Sector Reports] 2122015)The ratio between CO2 emissions and tons of finished product produced increased because in 2016 the sale of spray-dried material to other companies rose compared to the previous year (emissions from this phase are included in the emissions count but there is no corresponding output of finished product)
In a change from previous years the new GRI-G4 guidelines also require reporting of nitrogen oxide and sulphur oxide emissions Nitrogen oxide (NOx) emissions are within the limits permitted under the integrated environmental authorisation Sulphur oxide (SOx) emissions are not reported here since this figure is not required by the IEA
Transport
The materiality study reveals that transport is a significant factor for both stakeholders and Florim itself The company is not able to measure the impact of transportation of finished product on the local area since all shipments are ex-works However Florim which has been introducing electric vehicles to replace its oldest most obsolete unleaded petrol forklifts for years now has further optimized the handling of materials thanks to the new highly-automated logistics hub created at the via Canaletto location In 2016 about 53 of the vehicles used on the companys premises were electric with no direct greenhouse gas emissions
2016 Sustainability Report26
CEDIT ndash Creative Composition
2016 Sustainability Report 27
Workforce Composition
In 2016 the workforce included 27 people with disabilities 6 women and 21 menBearing in mind the job descriptions arising from the specific industrial sector the breakdown between men and women is in line with the industry average Male office workers and executives earn an average of 10 more than women for jobs of equal responsibility Among blue-collar workers the difference is 7 The company had a total of 29 foreign employees 24 at Fiorano and 5 at Mordano
Manager Executive Office worker
2013 2014 2015 2016 2013 2014 2015 2016 2013 2014 2015 2016
Women 2 3 3 3 3 1 1 1 137 142 133 149
Men 18 21 20 18 21 24 25 28 127 132 128 132
Total 20 24 23 21 24 25 26 29 264 274 261 281
Office ancillary Blue-collar worker Total
2013 2014 2015 2016 2013 2014 2015 2016 2013 2014 2015 2016
Women 18 16 25 19 226 219 212 196 385 381 375 368
Men 64 68 79 64 376 358 356 377 607 603 607 619
Total 82 84 104 83 602 577 568 573 992 984 982 987
Social Responsibility
Employees amp Corporate welfare
Its employees are the heart and soul of Florim they provide its character and its DNA Since 2009 when the current major economic crisis began Florim has undertaken a number of income support programs for its workforce Below we summarise some of the ongoing programmes and others run in 2016bull Ending of the Income Support Program for the Mordano plantbull Agreement with Sassuolo Hospital under which Florim employees and their family members enjoy discounts and shorter waiting times for specialist examinations and outpatient diagnostic tests performed on a private basisbull Special agreements with local health facilitiesbull Tax advice at special rates bull Special terms for banking services with financial consultants on-sitebull Discounts on the purchase of Florim products for employees homesbull Free entry to the Peggy Guggenheim Collection in Venice for employees and concessions for family membersbull Free provision of water and mineral salts in the plants during the summerbull Distribution of fuel vouchers to employees for the Christmas holidays
Summer Play Schemes and Cregraveches
In 2016 the summer play schemes for the children of employees at Fiorano and Mordano were continued for the fifth year in succession Seven different centers across the area between Modena and Bologna hosted 85 children (twice the number of the previous year) the company paid the fee for two weeks attendanceWhats more since 2013 the company has negotiated special terms with local cregraveches which now offer a number of places for employeesrsquo children at a reduced fee
2016 Sustainability Report28
Human Resources Management Policies
In July 2015 on renewal of the in-house supplement to the national employment contract the Management introduced a new phase in its relations with the Trade Unions with the aim of continuing and improving the good relationships enjoyed for decadesThe new company contract applied for all employees at the Fiorano headquarters includes more facilitations for part-time working the willingness to allow flexitime where feasible and the commitment to invest in staff training in order to generate full benefits from intellectual capital The company and the trades unions agreed on a plan to improve efficiency fundamental for maintaining the current level of competitiveness by establishing improvement in Production Efficiency and EBITDA as criteria for the payment of the new Performance Bonus The individual Attendance Score is considered together with these parameters The 2016 Performance Bonus in its first year of application was 20 higher than that paid in 2015 In addition in response to employees requests the Company increased the number of approved canteens extending the choice available and also introduced weekly laundering of work clothing for all production workersWith regard to applications for severance pay advances the Company confirms its commitment to continuing the policy implemented so far
Training
Florim believes that in-house training plays a key role in the companyrsquos development and provides a tool for stimulating and fulfilling the potential of its human resourcesMore than 10600 training hours were provided in 2016 to 847 people with an average of more than 11 hours of training per employee New projects included a 6-month on-line English language course which attracted a large number of participants and two highly structured training courses for the sales division and the communication department A retraining program for workers at the Mordano plant was also completed it comprised 4 technical courses attended by 31 people for an average of 13 hours per person Another new entry for 2016 was an innovative procedure for acquiring information about training needs using an on-line questionnaire available to all employees as well as line managers specific recommendations The Master in Florim project is discussed in depth in the specific section
Health and Safety
Florim was the first Italian ceramics manufacturer to receive BS OHSAS 18001 (Occupational Health amp Safety Assessment Series) certification from TUumlV this international standard certifies the implementation of an internal management system oriented towards occupational health and safetyThis major award confirms the companys constant commitment to the well-being of its employees Every year in addition to engineering inspections and machinery maintenance a number of hours of safety training are organised to raise awareness among workers and supervisors Specifically in 2016 2849 hours were dedicated to safety training and a significant reduction in injury rates was recordedMoreover BLSD refresher courses are continuously held for the team of Florim employees trained in first-aid operations and the use of the defibrillators available on site
2012 2013 2014 2015 2016
Number of workplace injuries 63 62 74 56 43
2016 Sustainability Report 29
The Master in Florim organized for the fourth time in 2016 is a vocational training project which aims to bridge the gap between education (high school or university) and the world of work The program which is one of the companys Social Responsibility projects sets out to help young people to get to know the company through a well structured work experience plan It offers a distinctively northern European approach with a method which alternates classroom teaching with internships in the various areas of the company Participants new university or high school graduates specialising in various subjects all below 30 years of age are therefore able to gain hands-on experience of all Florim departments from RampD to the production process and product distribution for an all-inclusive vision The MASTER courses ambitious aim is to match the individual participants talents with the companys real needs At the end of each edition the company hires all or some of the selected candidates enabling it to acquire new skills new experiences and new energy
Master 40 in figures
20 young people taking part6 months of training13 external lecturers264 hours of classroom teaching392 hours of practical training4 company visits (Ferrari Tetrapak Cremonini and Ducati)50 days of work experience on rotation involving 15 departments1 month of project work
The projects prestige is enhanced by its economic context since Florim pays the young participants for the entire period and its aim is to deal with the thorny problem of youth unemployment The Master has won approval from various faculties at major Italian universities The project was also a winner in the Emilia-Romagna Regions 2016 awards for Corporate Social Responsibility projects run in the local community A prize in the ldquoBusiness and Educationrdquo category was assigned to the Master project which aims to give young people the skills required for sustainable development
Master in Florim
2016 Sustainability Report
Watch the videoof the 4th edition
2016 Sustainability Report30
Local Community amp Culture
This chapter describes a number of programs Florim runs for the local community in the area where it originated and where it has been working for more than 50 years
Politecnico di Milano
Since the 20052006 academic year Florim has been a partner sponsor of a large number of Postgraduate Courses run by POLIDesign the Politecnico di Milano consortium which organizes its Master Degree coursesAlso in association with POLIDesign since 2012 Florims Milan showroom has hosted several design events for architects and designers of every nationality
Aziende modenesi per la RSI
ldquoAziende Modenesi per la RSIrdquo an independent open inclusive association of companies in the Modena area which believe in the principles and values of Corporate Social Responsibility was established by public deed on 30 September 2014 with Florim as a founding member Florim hosts the associations member companies every year to discuss the various topics proposed
Premio Lucchese
The Premio Lucchese presented for the twenty-ninth time in 2016 was established in memory of Giovanni Lucchese and consists of scholarships awarded to students at the ldquoAlessandro Voltardquo Technical High School in Sassuolo who graduate with full marks The award ceremony held every year at the Florim Gallery in association with Societagrave Ceramica Italiana of Bologna includes a talk given by a leading personality on a topic of current interest to an audience of eager young listeners
Intrapresaelig Collezione Guggenheim
As befits a company that combines the values of its local community and historic and artistic heritage with a flair for research and innovation Florim recently launched a partnership with the Peggy Guggenheim Collection Since its foundation Florim has always had a unique ability to incorporate the true cultural significance of its industry in its business model and by this project once again confirms its commitment to promoting art by supporting a collection of extraordinary beauty
Fondazione Ing Giovanni Lucchese
More than thirty years after the untimely death of Giovanni Lucchese ndash founder of what was then Floor Gres currently Florim ndash in 2013 his family established a Foundation in his name which since then has funded organizations and associations that support families in need in the ceramics district The Foundation also supports a variety of projects such as the summer play scheme for employees children the Premio Lucchese and the Florim HealthampTraining Center described in more detail below
The main projects undertaken in 2016 include the funding of the purchase of 10 defibrillators for the Municipality of Fiorano and the contributions made to the purchase of paediatric ambulances for the local area and to support the Parish charitable organizations and social services in the district
Watch the Premio Lucchese video
The project run jointly by Florim and Sassuolo Hospital adopts a completely new model combining industrial culture and healthcare in an original way to benefit the local people and community thanks to the coming-together of a ceramic coverings manufacturer and the public-private joint venture Ospedale di Sassuolo Spa Florim HealthampTraining is the synthesis of this idea an experimental center which promotes local training for healthcare and other staff health education and information advanced medical simulation and research
The Center
On the main Florim site and opened on 16 April 2014 the Center is 550 square meters in area and contains a modular lecture theatre able to seat over 100 people and a number of classrooms for seminars and lessons At its heart is a state-of-the-art control room crammed with technology that operates dummies capable of reproducing human functions of all kinds Advanced simulation is a major aid to maintaining the skills of emergency healthcare workers with a particular focus on pediatric and neonatal resuscitation
Health meetings
Designed as a space for community use the Center also aims to become a place where all sections of the population - workers schoolchildren parents teachers volunteers and even just members of the public - can learn about preventive health care and acquire first aid skills After the distribution to Florim employees of a questionnaire surveying their training needs and preferences a Center Scientific Committee of Sassuolo Hospital medical personnel was appointed and drew up a plan of bi-monthly ldquoHealth meetingsrdquo All meetings are led by doctors with expertise in the various topics who answer the many questions from the audience at the end of their talks Between its opening and the end of December 2016 the Center hosted 13 meetings on a variety of topics attended by about 1000 people including employees their family members and the community at large
Healthcare discounts for Florim employees
The project also includes a major welfare program for all Florim employees and their family members entitling them to discounts and shorter waiting times for specialist examinations and outpatient diagnostic tests performed on a private basis
American Heart Association
The world-famous American Heart Association (AHA) is the oldest and most respected American voluntary organization dedicated to the fight against cardiovascular diseases and strokes In 2015 the AHA via the Simaid International Training Center named the Florim HealthampTraining Center as an Authorized Training Site for basic and advanced cardiopulmonary resuscitation
Florim HealthampTraining Center
2016 Sustainability Report
Watch the Health amp Training Center video
2016 Sustainability Report32
Product Responsibility
Here we summarize the concept of Made in Florim denoting a product that encapsulates the companys core values passion innovation a constant commitment to improvement and corporate social responsibility
Florim product certifications
CE Marking guarantees the user that the materials purchased meet the requirements of the relevant regulations and that the characteristics concerned are virtually unchanged for all production lots It is a declaration of conformity which protects the consumerrsquos safety The presence of the CE Marking on packaging guarantees that Florim products comply with the relevant regulatory requirements
Ecolabel (EC Regulation 662010) is a certification granted to products which comply with ecological and performance criteria set at a European level concerning raw material extraction supplier selection manufacturing processes packaging distribution use and disposal The certified Florim collections are Architech Ecotech Reverse Walks 10 by Floor Gres and Pietra del Nord under the Rex brand
Several ceramic tile collections bearing the Florim brands have earned certification from Bureau Veritas for their pre-consumer recycled material content These articles are therefore fully eco-compatible and can meet the environmental sustainability requirements imposed by many international certifications
Florim is a member of the US Green Building Council (USGBC) the most important association which promotes the reduction of buildings negative impact on the environment To allow the effective monitoring a projects level of sustainability the USGBC has developed a certification procedure for the development of sustainable buildings which assess and certifies the sustainability of a building in its entirety Florim materials are able to help to gain LEED points in a number of areas (data available on the Florim brand websites)
Florim has achieved the prestigious Greenguard certification for all its products Issued by the American body UL Environment this certification aims to reduce indoor pollution caused by interior design systems and materials UL Environment thus aims to protect health by improving air quality and reducing peoples exposure to chemicals and other pollutants Florim has also achieved Greenguard Gold Certification which imposes even stricter limits to confirm that a given product is suitable for use even in locations such as schools and health care facilities
The EPD or Environmental Product Declaration is a document which defines the environmental impacts arising from production In 2016 Florim participated in the study - certified by the German organization IBU - performed on the ceramics industry average data which aims to raise international awareness of the excellence of the environmental standards achieved
Beyond the standardsMade in Florim products are a guarantee of safety highly innovative content and eco-friendliness The people who produce them work in a safe place and in ethically sustainable conditions Due to their nature all Florim products are guaranteed free from pollutant emissions do not accumulate electrostatic charges are frostproof and completely inert and are undamaged by contact with flames The Groups Internet sites and collection catalogues contain the technical data sheets which detail the product information (slip-resistance breaking strain abrasion resistance etc) for every collection as well as its recycled material content with the relative certificates
During the period under consideration no banned products were placed on the market and the company was not found guilty of any breaches of the law with regard to data protection or its marketing and communication activities
EU Ecolabel nr IT2104
2016 Sustainability Report 33
Quality SystemThe current ISO 9001 standards define quality as the ability to satisfy explicit or implicit needs via a product or a service A Quality System implies constant improvement of company processes in order to realise products that always satisfy the customerrsquos needs Further to the 2016 audit Florim obtained the renewal of its UNI EN ISO 90012015 certification for the design manufacture and sale of all categories of ceramic tile
Objective Indicator 2012 2013 2014 2015 2016
Continual improvement of control of the production process
Percentage of First Grade Product ()
924 943 942 952 956
Quality rate () 883 905 903 905 909
Scrap rate () 44 41 42 42 49
Productivity (sq mhour) 186 188 186 190 200
Improvements in sales performance and customer satisfaction
Innovation rate () 330 296 367 455 364
Coverage () 795 714 814 813 816
Total portfolio shippable within one month ()
911 837 888 893 897
Optimization of range and stocks
Obsolete stock () 172 126 165 120 69
Stock turnover rate () 13 15 16 15 16
Gradual elimination of disputes complaints and claims concerning service
Square meters affected by complaints ()
17 12 08 12 09
Complaints by number of order items ()
10 11 11 10 10
Gradual improvement in staff skill levels
Employee turnover () 15 23 04 04 12
KeyPercentage of first grade product percentage ratio between the square meters of first grade products and the total square meters transferred to stockQuality rate percentage ratio between the square meters of first grade product transferred to stock and the square meters leaving the pressesScrap rate percentage difference between square meters of material leaving the presses and square meters of product actually transferred to stockProductivity ratio between the square meters transferred to stock and the total hours worked in the plantInnovation rate ratio between square meters sold belonging to series designed in the last three years and total square meters sold Florim uses this indicator to assess the effectiveness of its design process in terms of salesCoverage percentage ratio between square meters available for immediate shipment and the square meters on orderTotal portfolio of orders shippable within one month percentage ratio between the square meters which can be shipped in 30 days and the square meters on orderObsolete stock percentage ratio between the square meters of substandard discontinued produce and the total square meters in stock Stock turnover rate ratio between the square meters sold and the square meters in stockSquare meters affected by complaints percentage ratio between the square meters affected by complaints and the square meters soldComplaints by number of order items percentage ratio between the number of complaints and the number of items orderedEmployee turnover percentage ratio between the number of employees leaving the company and being replaced and the workforce at the start of the year
2016 Sustainability Report34
Casamood - Neutra 60 Collection
2016 Sustainability Report 35
OUR COMMITMENTS
The promises we keptIn our last Sustainability Report we committed to achieving a large number of objectives the following are the outcomes we attained
Relaunch of the ldquoCEDIT ndash Ceramiche drsquoItaliardquo brand OBJECTIVE ACHIEVED
Launch of the FLORIM stone brand OBJECTIVE ACHIEVED
Installation of a new latest-generation kiln at the Mordano plant OBJECTIVE ACHIEVED
Transfer of the Moscow showroom to new premises SCHEDULED FOR 2017
Creation of a new gatehouse at the Mordano plantOBJECTIVE POSTPONED TO GIVE PRIORITY TO THE CONSTRUCTION OF THE NEW FACTORY
Introduction of ERP system at Florim USA OBJECTIVE ACHIEVED
Installation of a new spray dryer and raw material handling system at Florim USA
OBJECTIVE ACHIEVED
Economic Responsibility
Renewal of certification of the Florim environmental and energy management system
OBJECTIVE ACHIEVED
Award of new certifications for collections manufactured with a high recycled material content
OBJECTIVE ACHIEVED
Continuation of work to reduce environmental impacts at Mordano especially with the reduction of energy costs
OBJECTIVE ACHIEVED
Continuation of the work to remove asbestos cement roofing materials at the Mordano plant
OBJECTIVE ACHIEVED
Expansion of the system which conveys rainwater to the treatment plant OBJECTIVE ACHIEVED
Reduction of the noise emissions of the air filtering systems OBJECTIVE ACHIEVED
Increase of recycling targets through constant awareness-raising amongst all staff and optimisation of recycling facilities
OBJECTIVE ACHIEVED
Continuation of replacement of the diesel forklift trucks for use on outdoor yards with electric vehicles
OBJECTIVE ACHIEVED
Environmental Responsibility
Running of fourth edition of Master Florim course with new procedures OBJECTIVE ACHIEVED
Creation of an internal refreshment area for the Fiorano office staff OBJECTIVE ACHIEVED
Improvement of corporate welfare through the activation of new free services and discounts tailored to employees needs
OBJECTIVE ACHIEVED
Continuation of the health meetings for the local community in association with Ospedale di Sassuolo Spa
OBJECTIVE ACHIEVED
Organization of new community events at Florim Gallery OBJECTIVE ACHIEVED
Organization of Florim Family Day 2016 A PARTY WAS ORGANISED FOR EMPLOYEES
Social Responsibility
2016 Sustainability Report36
The targets we set for ourselvesWe aim to achieve the following objectives in 2017
Economic Responsibility
Construction of a new factory at Mordano to produce large slabs
Launch of the project to unite the Florim spa sales organizations
Total restyling of the corporate and brand Internet sites
Launch of the HUB project - Intranet CRM Marketing Automation
New plants at Florim USA a press two sorting lines a polishing and rectifying line
New working spaces and cloakrooms for technical staff at the American plant
Environmental Responsibility
Purchase of a new cogenerator for the Mordano plant
Introduction of a new rainwater collection system at Fiorano
Land reclamation project involving covering of the Rio Spezzano stream at Fiorano
Implementation of new software for continual monitoring of energy impacts at Fiorano
Modernisation of the compressor room to improve energy impacts at Mordano
Increase of recycling targets through constant awareness-raising amongst all staff and optimisation of recycling facilities
Continuation of replacement of the diesel forklift trucks for use on outdoor yards with electric vehicles
Social Responsibility
Improvement of corporate welfare through the activation of new free services and discounts tailored to employees needs
Continuation of the health meetings for the local community in association with Ospedale di Sassuolo Spa
Organization of new community events at Florim Gallery
Organization of a new event for Florim spa employees
New offices for hospitality and events staff at Fiorano
2016 Sustainability Report 37
FLORIM USA
Profile and Economic ResponsibilityFlorim USA with registered office at Clarksville - Tennessee - and its subsidiary Florim Solution Inc have been part of the Florim Group since 2000 The Florim USA manufacturing plant one of the largest most technologically advanced in the United States produces porcelain stoneware tiles for the residential market and undertakes commercial projects in North America During the last few years Florim USA has implemented a growth and process optimization strategy which has generated significant technological progress with more innovations planned for the future The strategy adopted will put Florim USA at the worldwide state of the art in porcelain stoneware tile manufacture
In 2016 of the 18 million USD invested 147 was allocated for installation of a latest-generation raw material handling system and a large spray-dryer with an innovative sorting system Improvements were made to other parts of the process to increase their efficiency leading to a further reduction in emissions and scrap rates Additional investments are planned during 2017 to continue this dual trend of rising production with mitigation of environmental impact
The new Florim Flagship Store in New York (152 Madison Avenue 32nd Street)
2016 Sustainability Report38
Environmental ResponsibilityFlorim USA implements the same environmental policy as Florim and is committed to achieving the following objectives
bull reduction of the energy used in the production processbull improvement of the waste management process with a focus on recovery and reusebull introduction of new more eco-efficient technologiesbull adoption of integrated management systems
Florim USA has been pursuing a strategy of careful management of its operations and environmental impact for a number of years Here we summarise the main actions taken and the results achieved in 2016
bull installation of a latest-generation spray-dryer in 2016bull installation of an innovative raw material handling system in 2016bull 100 recycling of wastewater within the processbull optimisation of the management of water bottles with elimination of about 34200 of them per annumbull reuse of almost all production scrap (+99)bull 157000 kg of cardboard recycled in 2016bull award of two different types of product certificationbull 9300 kg of plastic recycledbull recycling of 17 complete trucks of pallets
Environmental Projects and Awards
Florim USA has received Clarksville Montgomery County Green Certification (CMCGC) CMCGC is a program designed to help companies learn and implement best practices in the area of environmental stewardship to sustain the local communityrsquos resources through a series of free workshops taught by local environmental specialists Since 2014 Florim has allocated some of its Environment Managers time for the running of these workshopsFlorim USA earned this green company certification thanks to a large number of projects first and foremost the one which eliminated the use of disposable water bottles replaced with individual reusable bottles provided by the company and a series of fill-up stations About 34200 bottles are removed from the waste cycle every year
During the latest phase of its plant optimization Florim USA has implemented a thorough construction material reuse policy In the various stages of demolition of the old plants including the old storage silos the concrete debris was recovered and reused in other construction worksThis project alone generated 11500 tons of recycled aggregate as well as several hundred tonnes of metal sold to a recycling firm
Environmental management system and eco-compatible products
Florim USArsquos products help builders and designers to meet the requirements for sustainable buildings as defined by the United States Green Building Council (USGBC) through the LEED Green Building Rating System This protocol evaluates and certifies the environmental sustainability of a building as a unit from its design to its day to day management To gain LEED credits many of the Florim USA product lines contain a significant percentage of recycled material (40 or more)This feature contributes to an increase in the LEED score in the projects where these products are installed In 2014 Florim USA together with a large number of other US tile manufacturers and the Tile Council of North America drew up a type III environmental product declaration (EPD) certified under the ISO 14025 standard This ceramic tile life-cycle analysis enables Florim USA products to gain LEED points under the new LEED v4 protocol
2016 Sustainability Report 39
Water use (gallonsper million square feetof finished tiles)
208137 216246 204962 195280 194268
Energy use
2012 2013 2014 2015 2016
Cubic feet of natural gas per million square feet of finished tiles 9343383 9149721 8331170 8390503 8380000
kWh per million square feet of finished tiles 510972 491171 450594 465976 490300
Emissions
Particulate material lt 21024 tonnes per annum
SO2 (sulphur dioxide) lt 1674 tonnes per annum
VOC (volatile organic compounds) lt 1245 tonnes per annum
NOx (oxides of nitrogen) lt 1501 tonnes per annum
Environmental performance indicators ndash summary
The following are the main environmental indicators related to the impact and performance of Florim USA during 2016
Pre-consumer recycled material
Its internal material recycling processes enable the company to minimise its environmental impact since most of the material which would otherwise be sent to landfills or other waste treatment centers is reusedbull Wastewater is entirely recycled within the production process without any discharge into the municipal drainsbull The material in the collection bags from the tile body and glaze preparation areas the press and glaze application is entirely recycled within the processbull All scrap fired tiles are entirely recycled within the processbull 157000 kg of cardboard was sold to an external recycled material dealerbull 17 trucks of unusable wooden pallets were sold to a pallet regeneration companybull About 9300 kg of waste shrink-wrap plastic film was recovered and recycled
Post-consumer recycled material
About 82000 kg of glass was removed from the flow of waste destined for the local landfill and recycled within the process Florim USA has signed an agreement with the local landfill for consignment of all the glass it handles which is collected and set aside for recycling
Water use disposal and reuse
The water used during the production process is recycled continually therefore no water is discharged into the municipal drains
The 2016 emissions figures are in line with those for previous years well below the standards laid down
Water use 2012 2013 2014 2015 2016
Water use (gallons per million square feet of finished tiles) 216246 204962 195280 194268 203928
2016 Sustainability Report40
Social Responsibility
Employees
The Florim USA workforce comprises 348 staff employed at the production site the Clarksville and Nashville outlet stores and the Florim Solution offices Of the 348 employees 273 are blue-collar workers and 75 office staff 5 employees are Italians on secondment to the United States Florim USA offers a number of benefits to full time employeesbull health and dental care insurancebull Vision insurancebull life insurance for employees and optionally for family membersbull temporary and permanent disability supportbull employee pension plan
2012 2013 2014 2015 2016
Workplace injuries 50 41 22 29 27
The Employee Assistance Program (EAP) also offers support to employees and their families in the event of psychological difficulty or other problems that can have a negative impact on their quality of life Florim USA supports all the costs of the program
Equal opportunities
Florim USA provides equal opportunities in all employment practices to all qualified employees and applicants regardless of race colour religion gender national origin age disability or membership of the armed forces or any other category protected by federal state or local laws
Health and safety
FLORIM USA is committed to ensuring a safe healthy workplace for all employees It therefore replaces old and obsolete equipment with new technologically more modern machinery and updates safety plans as new information gradually becomes availableAs well as an internal supervisor Florim USA has also appointed a health and safety committee which constantly monitors the plans effectiveness and makes any changes requiredThere are currently 20 plant employees who hold CPRfirst aid qualifications They occupy a variety of positions and work different shifts within the plant and have volunteered to attend training courses sponsored by the company for the award of these qualifications
Training
In 2016 every Florim USA employee attended an average of about 25 hours of training The training provided covered the operating procedures for the new equipment the main safety plans and the procedures for use of existing equipment for new employeesAll new staff undergo specific training for their department focusing on the safety-related aspects of the department concerned as well as more generalized safety training
Some of these themes includebull safe correct use of forklift trucksbull training on work in confined spacesbull shutdownwarning procedures and safe electrical practicesbull safe lifting procedures
2016 Sustainability Report 41
Florim USA ndash (Clarksville Tennessee)
For employees wishing to continue their education Florim USA offers assistance through the Educational Assistance Program It provides aid with the cost of education and textbooks and is available for any employee wishing to study for a technical qualification a diploma or a degreeThe plant staff training and education plan also includes various training schemes at Florim Italy where employees are instructed in the use of new equipment before it is installed at the American plantThroughout 2016 Florim USA will continue to provide a free e-learning course on its website for architects engineers and contractors (AEC) to improve their knowledge of sustainable porcelain stoneware tiles
Employee welfare activities
Florim USA employee picnic - In 2016 the company once again held its annual picnic for employees offering them a wide variety of foods games activities and live shows in an event which provided an unforgettable days enjoyment Within the event participants received prizes in the form of vouchers and gifts
Employee anniversary dinner - 2016 again saw the usual dinner to honour Florim USA employees with 5 10 15 20 or more years of service A special evening event was held in the presence of the Chairman and the other managers to celebrate the loyalty and hard work these employees have contributed during their careers with the firm
2016 Sustainability Report42
Local Community
During 2016 Florim USA continued to provide its support to a number of projects in its local areaSome of the main projects include
Scholarships - As part of its work to support the local community Florim has an established scheme which awards scholarships to deserving students at the Austin Peay State University in memory of Florim Group founder Giovanni Lucchese In December 2016 a delegation of Florim representatives attended a scholarship presentation lunch at the Austin Peay State University hosted by the President of the University
Montgomery County Green Certification Program - Florim USA staff actively participate in the Montgomery County Green Certification Program which aims to help companies learn and implement best practices with regard to safeguarding the environment and environmental resources
Donations - In 2016 the company again made a large number of donationsbull book collection for the Austin Peay State University Employees made a generous donation of used books in good condition for children and young people of the APSU in the hope of further promoting the education of future generationsbull to Community Cares the national organization that promotes the acceptance and social inclusion of individuals with Downs Syndromebull to the Aspire Clarksville Foundation a 501(c)(3) charitable foundation whose mission is to continuously improve the economy and the livability (quality of life) of the community by attracting significant capital investment and expansion by businesses and corporations thereby creating better opportunities and higher paying jobs for residentsbull to the Alzheimerrsquos Association a non-profit voluntary organization dedicated to the care and support of Alzheimers Disease sufferers and research into the condition Its aim is to eliminate the disease through the advancement of research to provide and enhance care and support for all affected and to reduce the risk of dementia through the promotion of brain health
Other activities - Every year Florim USA participates in the United Way Drive initiative to support local non-profit organizations which provide economic assistance and psychological support to persons in difficulty
Florim USA provides regular support to the Salvation Army by collecting canned foods for persons in needIn 2016 the company again organised a canned food collection for Manna Cafeacute in Clarksville TN Manna Cafeacute is a local non-profit organization based in Middle Tennessee with the primary mission of meeting peoples fundamental need for food before encouraging them to permanently change their lives for the better More than 15 of the population in Montgomery County are affected by food insecurity (about 28000 people) The percentage of children affected is about 215 a third of whom are excluded by income from federal programs such as free school mealsFinally donations were made tobull American Lung Association the leading organization working to save lives by improving lung health and preventing lung disease through research and educationbull Cheer for a Cure an organization that gives money directly to afflicting families who have a loved one suffering from cancer and need assistance to alleviate the added financial stressbull Habitat for Humanity Since 1992 Habitat for Humanity in Montgomery County Tennessee has worked with 93 low-income families with more than 210 children to revitalise various parts of Clarksville-Montgomery County by building new homes
2016 Sustainability Report 43
Quality SystemFlorim USA works under a Quality System certified to UNI EN ISO 9001 standards The following are some of the figures in brief
Objective Indicator 2012 2013 2014 2015 2016
Optimisation of control of the production process
Percentage of First Grade Product ()
932 917 940 949 9510
Quality rate () 883 857 893 906 909
Scrap rate () 56 65 48 45 45
KeyPercentage of first grade product ratio between square feet of first grade material and total square feet transferred to stockQuality rate ratio between square feet of first grade material transferred to stock and square feet pressedScrap rate ratio between square feet pressed and square feet of product actually transferred to stock
Other ActivitiesFlorim USA and trade shows
In 2016 Florim USA participated at a number of shows and events including Coverings the AIA Tennessee Convention Hardscape North America Total Solutions Plus Neocon International Pool - Spa and Patio Expo These events targeted at the various categories of industry professionals such as dealers and designers gave Florim USA the opportunity to present its new range of indoor and outdoor products
Design Center
In December 2015 Florim USA opened a design center showroom in Nashville (TN) in a strategic location close to the airport and the city center With a spacious area to host individual CEU presentations and workshops this design center has the potential to be a major resource for local architects In 2016 it was also awarded the ldquoOutstanding Boothrdquo booth prize at the 33rd edition of the Annual Home Decorating and Remodeling Show The location is the ideal place for sharing ideas finding inspiration and putting professionals and architects in touch with each other
Florim Nashville Design Center
2016 Sustainability Report44
GRI International Sustainability Indicators SDGsThe information below illustrates the correspondence between the Florim (Italian companies) 2016 Sustainability Report the GRI-G4 guidelines and the icons of the Sustainable Development Goals (SDGs) definitively adopted by the United NationsA description of the SDGs is available at wwwglobalcompactnetworkorg
GRI indicators
Description Page Reference to SDGs
1 Strategy and Analysis
G4-1 Statement from the most senior decision-maker of the organization 5
2 Organization profile
G4-3 Name of the organization 2
G4-4 Primary brands products andor services 9
G4-5 Location of the organizations headquarters 9
G4-6 Number and names of the countries where the organization operates 9
G4-7 Nature of ownership and legal form 14
G4-8 Markets served 9
G4-9 Scale of the organization 8 8
G4-10 Significant changes regarding size structure or ownership 8
G4-11 Employees covered by National Collective Bargaining Agreement 27
G4-12 Describe the supply chain 16
G4-13Significant changes regarding the organizationrsquos size structure ownership or its supply chain
Reporting process
launched
G4-14 Precautionary principle 22
G4-15 List of external commitments in which the company is involved 22 32 33
G4-16 Associations or interest groups in which the company is involvedwwwflorimit gt
about us gt partnerships
3 Identified material aspects and boundaries
G4-18 Process used to define the report content 6
G4-19 Material aspects 16
G4-20 Boundaries of each material aspect 6
G4-21 Boundaries of each material aspect outside the organizationPartial reporting
(pages 6 16)
G4-22 Explanation of the effect of any restatements of information provided in previous reports 6
G4-23Significant changes from previous reporting periods in the scope boundaries or measurement methods
6
3 Stakeholder engagement
G4-24 List of stakeholders 15
G4-25 Identification of stakeholders 15
G4-26 Stakeholder engagement 6 16
G4-27 Key topics and concerns that have been raised through stakeholder engagement 16
4 Boundary of the Report
G4-28 Reporting period 6
G4-29 Date of publication 2
G4-30 Reporting cycle 6
G4-31 Contacts and addresses for additional information 46
5 GRI Content Index
G4-32 Reporting option chosen 6 7
G4-33 External assurance of ReportThe Report is not
externally assured
2016 Sustainability Report 45
GRI indicators
Description Page Reference to SDGs
6 Governance
G4-34 Governance structure 14
7 Ethics and integrity
G4-56 Values principles standards and norms of behavior 13 16
Economic performance indicators
EC1 Direct economic value generated and distributed 19 25789
EC5 Wages 27 158
EC7 Development and impact of infrastructure investments and services supported 23 24 31 257911
Environmental performance indicators
G4-EN2 Percentage of materials used that are recycled input materials 17 22 23 812
G4-EN3 Energy consumption within the organization 24 781213
G4-EN6 Reduction of energy consumption 17 24 71213
G4-EN7 Reductions in energy requirements of products and servicesPartial reporting
(page 22)71213
G4-EN8 Total water withdrawal by source 17 23 6
G4-EN10 Percentage and total volume of water recycled and reused 17 21 23 612
G4-EN11 Biodiversity 23 615
G4-EN15 Total indirect greenhouse gas emissions by weight 25 3121315
G4-EN16 Total indirect greenhouse gas emissions by weight 25 3121315
G4-EN19 Reduction of greenhouse gas emissions 8 24 1315
G4-EN21 NOx SOx and other significant air emissions 25 31215
G4-EN22 Total water discharge by quality and destination 23 6
G4-EN23 Total weight of waste by type 17 22 3612
G4-EN27 Impact mitigation of environmental impacts of products and services 23 68121315
G4-EN29 Monetary value of significant fines 22 16
G4-EN30 Significant environmental impacts of transporting products and goodsmaterialsPartial reporting
(page 25)111213
Social performance indicators
G4-LA1 Total number and rates of new employee hires and employee turnoverPartial reporting
(pages 17 27)8
G4-LA6 Workplace injury ratesPartial reporting
(page 17)38
G4-LA9 Average hours of training per year per employee 28 48
G4-LA12Composition of governance bodies and breakdown of employees according to gender age group etc
27 58
G4-LA13 Ratio of basic salary and total remuneration of women to men 27 5810
Society
G4-SO1 Operations with local community engagement 12 31 16
G4-SO3 Operations assessed for risks related to corruptionPartial reporting
(page 13)
Product responsibility
G4-PR1 Assessment of health and safety impacts for improvement 23 32
G4-PR3 Type of information about products and services required by the procedures 32 12
G4-PR5 Proceedings relating to customer satisfaction including surveys conducted to measure it 33
G4-PR6 Sale of banned or disputed products 32
G4-PR8 Number of substantiated complaints regarding breaches of privacy 32 16
2016 Sustainability Report46
Your Assessment
You are kindly requested to take a few minutes of your time to give us your assessment and any suggestions to enable us to improve future editions of our Sustainability Report
Click here to send us your feedback
To keep up to date with our business
Spazio CEDIT - interior (Milan)
wwwflorimiten
Florim Ceramiche
Florim4Architects
Florim_ceramiche
Florim Ceramiche spa
Florim Ceramiche
Florim Ceramiche
For any further information please feel free to contact our communications department comunicazioneflorimit
2016 Sustainability Report 47
Premio Lucchese - Florim Gallery (Fiorano Modenese - Modena Italy)
Intrapresaelig Guggenheim Collection - Massimo Bottura in Florim Gallery (Fiorano Modenese - Modena Italy)
Panathlon Christmas Gala - Florim Gallery (Fiorano Modenese - Modena Italy)
2016 Sustainability Report48
White Christmas Party - Florim Gallery (Fiorano Modenese - Modena Italy)
Cersaie - Mario Biondi in Florim Gallery (Fiorano Modenese - Modena Italy)
Dal buio alla luce - Social event at Florim Gallery (Fiorano Modenese - Modena Italy)
2016 Sustainability Report 49
Florim Gallery entrance (Fiorano Modenese - MO)
2016 Sustainability Report52
Florim Ceramiche spaVia Canaletto 24 - 41042 Fiorano Modenese (Modena Italy) - Tel +39 0536 840111 - wwwflorimit
2016 Sustainability Report 25
Atmospheric Emissions
The industrial facility emits greenhouse gases basically CO2 from the following main sourcesbull combustion from the burning of fossil fuels (such as natural gas)bull processes from the minerals in the raw materials any organic matter in the clays used and any organic additives in tile body mixes
In order to comply with Directive 200387EC (ETS - Emission Trading Scheme) Florim has been reporting and certifying its CO2 emissions since 2013
CO2 emissions 2013 2014 2015 2016
CO2 emissions (t) 102728 103462 111862 132960
CO2 emissions (t) Finished product (t) 033 033 033 035
Emissions from the production cycle 2013 2014 2015 2016
Particulate material (gmsup2 finished product) 223 130 098 118
Lead (gmsup2 finished product) 000 000 000 000
Fluorine (gmsup2 finished product) 014 018 013 012
The increase in CO2 is due mainly to the large increase in the square meters produced (+ 8) and the 247 use of the cogeneration plant However it should be noted that the cogeneration plant provided a 10 increase in in-house electricity generation with lower CO2 emissions than electricity purchased from the grid produced mainly using fossil fuels (source ISPRA Fattori di emissione atmosferica di CO2 e sviluppo delle fonti rinnovabili nel settore elettrico Rapporti [Atmospheric CO2 Emission Factors and Development of Renewables in the Electricity Sector Reports] 2122015)The ratio between CO2 emissions and tons of finished product produced increased because in 2016 the sale of spray-dried material to other companies rose compared to the previous year (emissions from this phase are included in the emissions count but there is no corresponding output of finished product)
In a change from previous years the new GRI-G4 guidelines also require reporting of nitrogen oxide and sulphur oxide emissions Nitrogen oxide (NOx) emissions are within the limits permitted under the integrated environmental authorisation Sulphur oxide (SOx) emissions are not reported here since this figure is not required by the IEA
Transport
The materiality study reveals that transport is a significant factor for both stakeholders and Florim itself The company is not able to measure the impact of transportation of finished product on the local area since all shipments are ex-works However Florim which has been introducing electric vehicles to replace its oldest most obsolete unleaded petrol forklifts for years now has further optimized the handling of materials thanks to the new highly-automated logistics hub created at the via Canaletto location In 2016 about 53 of the vehicles used on the companys premises were electric with no direct greenhouse gas emissions
2016 Sustainability Report26
CEDIT ndash Creative Composition
2016 Sustainability Report 27
Workforce Composition
In 2016 the workforce included 27 people with disabilities 6 women and 21 menBearing in mind the job descriptions arising from the specific industrial sector the breakdown between men and women is in line with the industry average Male office workers and executives earn an average of 10 more than women for jobs of equal responsibility Among blue-collar workers the difference is 7 The company had a total of 29 foreign employees 24 at Fiorano and 5 at Mordano
Manager Executive Office worker
2013 2014 2015 2016 2013 2014 2015 2016 2013 2014 2015 2016
Women 2 3 3 3 3 1 1 1 137 142 133 149
Men 18 21 20 18 21 24 25 28 127 132 128 132
Total 20 24 23 21 24 25 26 29 264 274 261 281
Office ancillary Blue-collar worker Total
2013 2014 2015 2016 2013 2014 2015 2016 2013 2014 2015 2016
Women 18 16 25 19 226 219 212 196 385 381 375 368
Men 64 68 79 64 376 358 356 377 607 603 607 619
Total 82 84 104 83 602 577 568 573 992 984 982 987
Social Responsibility
Employees amp Corporate welfare
Its employees are the heart and soul of Florim they provide its character and its DNA Since 2009 when the current major economic crisis began Florim has undertaken a number of income support programs for its workforce Below we summarise some of the ongoing programmes and others run in 2016bull Ending of the Income Support Program for the Mordano plantbull Agreement with Sassuolo Hospital under which Florim employees and their family members enjoy discounts and shorter waiting times for specialist examinations and outpatient diagnostic tests performed on a private basisbull Special agreements with local health facilitiesbull Tax advice at special rates bull Special terms for banking services with financial consultants on-sitebull Discounts on the purchase of Florim products for employees homesbull Free entry to the Peggy Guggenheim Collection in Venice for employees and concessions for family membersbull Free provision of water and mineral salts in the plants during the summerbull Distribution of fuel vouchers to employees for the Christmas holidays
Summer Play Schemes and Cregraveches
In 2016 the summer play schemes for the children of employees at Fiorano and Mordano were continued for the fifth year in succession Seven different centers across the area between Modena and Bologna hosted 85 children (twice the number of the previous year) the company paid the fee for two weeks attendanceWhats more since 2013 the company has negotiated special terms with local cregraveches which now offer a number of places for employeesrsquo children at a reduced fee
2016 Sustainability Report28
Human Resources Management Policies
In July 2015 on renewal of the in-house supplement to the national employment contract the Management introduced a new phase in its relations with the Trade Unions with the aim of continuing and improving the good relationships enjoyed for decadesThe new company contract applied for all employees at the Fiorano headquarters includes more facilitations for part-time working the willingness to allow flexitime where feasible and the commitment to invest in staff training in order to generate full benefits from intellectual capital The company and the trades unions agreed on a plan to improve efficiency fundamental for maintaining the current level of competitiveness by establishing improvement in Production Efficiency and EBITDA as criteria for the payment of the new Performance Bonus The individual Attendance Score is considered together with these parameters The 2016 Performance Bonus in its first year of application was 20 higher than that paid in 2015 In addition in response to employees requests the Company increased the number of approved canteens extending the choice available and also introduced weekly laundering of work clothing for all production workersWith regard to applications for severance pay advances the Company confirms its commitment to continuing the policy implemented so far
Training
Florim believes that in-house training plays a key role in the companyrsquos development and provides a tool for stimulating and fulfilling the potential of its human resourcesMore than 10600 training hours were provided in 2016 to 847 people with an average of more than 11 hours of training per employee New projects included a 6-month on-line English language course which attracted a large number of participants and two highly structured training courses for the sales division and the communication department A retraining program for workers at the Mordano plant was also completed it comprised 4 technical courses attended by 31 people for an average of 13 hours per person Another new entry for 2016 was an innovative procedure for acquiring information about training needs using an on-line questionnaire available to all employees as well as line managers specific recommendations The Master in Florim project is discussed in depth in the specific section
Health and Safety
Florim was the first Italian ceramics manufacturer to receive BS OHSAS 18001 (Occupational Health amp Safety Assessment Series) certification from TUumlV this international standard certifies the implementation of an internal management system oriented towards occupational health and safetyThis major award confirms the companys constant commitment to the well-being of its employees Every year in addition to engineering inspections and machinery maintenance a number of hours of safety training are organised to raise awareness among workers and supervisors Specifically in 2016 2849 hours were dedicated to safety training and a significant reduction in injury rates was recordedMoreover BLSD refresher courses are continuously held for the team of Florim employees trained in first-aid operations and the use of the defibrillators available on site
2012 2013 2014 2015 2016
Number of workplace injuries 63 62 74 56 43
2016 Sustainability Report 29
The Master in Florim organized for the fourth time in 2016 is a vocational training project which aims to bridge the gap between education (high school or university) and the world of work The program which is one of the companys Social Responsibility projects sets out to help young people to get to know the company through a well structured work experience plan It offers a distinctively northern European approach with a method which alternates classroom teaching with internships in the various areas of the company Participants new university or high school graduates specialising in various subjects all below 30 years of age are therefore able to gain hands-on experience of all Florim departments from RampD to the production process and product distribution for an all-inclusive vision The MASTER courses ambitious aim is to match the individual participants talents with the companys real needs At the end of each edition the company hires all or some of the selected candidates enabling it to acquire new skills new experiences and new energy
Master 40 in figures
20 young people taking part6 months of training13 external lecturers264 hours of classroom teaching392 hours of practical training4 company visits (Ferrari Tetrapak Cremonini and Ducati)50 days of work experience on rotation involving 15 departments1 month of project work
The projects prestige is enhanced by its economic context since Florim pays the young participants for the entire period and its aim is to deal with the thorny problem of youth unemployment The Master has won approval from various faculties at major Italian universities The project was also a winner in the Emilia-Romagna Regions 2016 awards for Corporate Social Responsibility projects run in the local community A prize in the ldquoBusiness and Educationrdquo category was assigned to the Master project which aims to give young people the skills required for sustainable development
Master in Florim
2016 Sustainability Report
Watch the videoof the 4th edition
2016 Sustainability Report30
Local Community amp Culture
This chapter describes a number of programs Florim runs for the local community in the area where it originated and where it has been working for more than 50 years
Politecnico di Milano
Since the 20052006 academic year Florim has been a partner sponsor of a large number of Postgraduate Courses run by POLIDesign the Politecnico di Milano consortium which organizes its Master Degree coursesAlso in association with POLIDesign since 2012 Florims Milan showroom has hosted several design events for architects and designers of every nationality
Aziende modenesi per la RSI
ldquoAziende Modenesi per la RSIrdquo an independent open inclusive association of companies in the Modena area which believe in the principles and values of Corporate Social Responsibility was established by public deed on 30 September 2014 with Florim as a founding member Florim hosts the associations member companies every year to discuss the various topics proposed
Premio Lucchese
The Premio Lucchese presented for the twenty-ninth time in 2016 was established in memory of Giovanni Lucchese and consists of scholarships awarded to students at the ldquoAlessandro Voltardquo Technical High School in Sassuolo who graduate with full marks The award ceremony held every year at the Florim Gallery in association with Societagrave Ceramica Italiana of Bologna includes a talk given by a leading personality on a topic of current interest to an audience of eager young listeners
Intrapresaelig Collezione Guggenheim
As befits a company that combines the values of its local community and historic and artistic heritage with a flair for research and innovation Florim recently launched a partnership with the Peggy Guggenheim Collection Since its foundation Florim has always had a unique ability to incorporate the true cultural significance of its industry in its business model and by this project once again confirms its commitment to promoting art by supporting a collection of extraordinary beauty
Fondazione Ing Giovanni Lucchese
More than thirty years after the untimely death of Giovanni Lucchese ndash founder of what was then Floor Gres currently Florim ndash in 2013 his family established a Foundation in his name which since then has funded organizations and associations that support families in need in the ceramics district The Foundation also supports a variety of projects such as the summer play scheme for employees children the Premio Lucchese and the Florim HealthampTraining Center described in more detail below
The main projects undertaken in 2016 include the funding of the purchase of 10 defibrillators for the Municipality of Fiorano and the contributions made to the purchase of paediatric ambulances for the local area and to support the Parish charitable organizations and social services in the district
Watch the Premio Lucchese video
The project run jointly by Florim and Sassuolo Hospital adopts a completely new model combining industrial culture and healthcare in an original way to benefit the local people and community thanks to the coming-together of a ceramic coverings manufacturer and the public-private joint venture Ospedale di Sassuolo Spa Florim HealthampTraining is the synthesis of this idea an experimental center which promotes local training for healthcare and other staff health education and information advanced medical simulation and research
The Center
On the main Florim site and opened on 16 April 2014 the Center is 550 square meters in area and contains a modular lecture theatre able to seat over 100 people and a number of classrooms for seminars and lessons At its heart is a state-of-the-art control room crammed with technology that operates dummies capable of reproducing human functions of all kinds Advanced simulation is a major aid to maintaining the skills of emergency healthcare workers with a particular focus on pediatric and neonatal resuscitation
Health meetings
Designed as a space for community use the Center also aims to become a place where all sections of the population - workers schoolchildren parents teachers volunteers and even just members of the public - can learn about preventive health care and acquire first aid skills After the distribution to Florim employees of a questionnaire surveying their training needs and preferences a Center Scientific Committee of Sassuolo Hospital medical personnel was appointed and drew up a plan of bi-monthly ldquoHealth meetingsrdquo All meetings are led by doctors with expertise in the various topics who answer the many questions from the audience at the end of their talks Between its opening and the end of December 2016 the Center hosted 13 meetings on a variety of topics attended by about 1000 people including employees their family members and the community at large
Healthcare discounts for Florim employees
The project also includes a major welfare program for all Florim employees and their family members entitling them to discounts and shorter waiting times for specialist examinations and outpatient diagnostic tests performed on a private basis
American Heart Association
The world-famous American Heart Association (AHA) is the oldest and most respected American voluntary organization dedicated to the fight against cardiovascular diseases and strokes In 2015 the AHA via the Simaid International Training Center named the Florim HealthampTraining Center as an Authorized Training Site for basic and advanced cardiopulmonary resuscitation
Florim HealthampTraining Center
2016 Sustainability Report
Watch the Health amp Training Center video
2016 Sustainability Report32
Product Responsibility
Here we summarize the concept of Made in Florim denoting a product that encapsulates the companys core values passion innovation a constant commitment to improvement and corporate social responsibility
Florim product certifications
CE Marking guarantees the user that the materials purchased meet the requirements of the relevant regulations and that the characteristics concerned are virtually unchanged for all production lots It is a declaration of conformity which protects the consumerrsquos safety The presence of the CE Marking on packaging guarantees that Florim products comply with the relevant regulatory requirements
Ecolabel (EC Regulation 662010) is a certification granted to products which comply with ecological and performance criteria set at a European level concerning raw material extraction supplier selection manufacturing processes packaging distribution use and disposal The certified Florim collections are Architech Ecotech Reverse Walks 10 by Floor Gres and Pietra del Nord under the Rex brand
Several ceramic tile collections bearing the Florim brands have earned certification from Bureau Veritas for their pre-consumer recycled material content These articles are therefore fully eco-compatible and can meet the environmental sustainability requirements imposed by many international certifications
Florim is a member of the US Green Building Council (USGBC) the most important association which promotes the reduction of buildings negative impact on the environment To allow the effective monitoring a projects level of sustainability the USGBC has developed a certification procedure for the development of sustainable buildings which assess and certifies the sustainability of a building in its entirety Florim materials are able to help to gain LEED points in a number of areas (data available on the Florim brand websites)
Florim has achieved the prestigious Greenguard certification for all its products Issued by the American body UL Environment this certification aims to reduce indoor pollution caused by interior design systems and materials UL Environment thus aims to protect health by improving air quality and reducing peoples exposure to chemicals and other pollutants Florim has also achieved Greenguard Gold Certification which imposes even stricter limits to confirm that a given product is suitable for use even in locations such as schools and health care facilities
The EPD or Environmental Product Declaration is a document which defines the environmental impacts arising from production In 2016 Florim participated in the study - certified by the German organization IBU - performed on the ceramics industry average data which aims to raise international awareness of the excellence of the environmental standards achieved
Beyond the standardsMade in Florim products are a guarantee of safety highly innovative content and eco-friendliness The people who produce them work in a safe place and in ethically sustainable conditions Due to their nature all Florim products are guaranteed free from pollutant emissions do not accumulate electrostatic charges are frostproof and completely inert and are undamaged by contact with flames The Groups Internet sites and collection catalogues contain the technical data sheets which detail the product information (slip-resistance breaking strain abrasion resistance etc) for every collection as well as its recycled material content with the relative certificates
During the period under consideration no banned products were placed on the market and the company was not found guilty of any breaches of the law with regard to data protection or its marketing and communication activities
EU Ecolabel nr IT2104
2016 Sustainability Report 33
Quality SystemThe current ISO 9001 standards define quality as the ability to satisfy explicit or implicit needs via a product or a service A Quality System implies constant improvement of company processes in order to realise products that always satisfy the customerrsquos needs Further to the 2016 audit Florim obtained the renewal of its UNI EN ISO 90012015 certification for the design manufacture and sale of all categories of ceramic tile
Objective Indicator 2012 2013 2014 2015 2016
Continual improvement of control of the production process
Percentage of First Grade Product ()
924 943 942 952 956
Quality rate () 883 905 903 905 909
Scrap rate () 44 41 42 42 49
Productivity (sq mhour) 186 188 186 190 200
Improvements in sales performance and customer satisfaction
Innovation rate () 330 296 367 455 364
Coverage () 795 714 814 813 816
Total portfolio shippable within one month ()
911 837 888 893 897
Optimization of range and stocks
Obsolete stock () 172 126 165 120 69
Stock turnover rate () 13 15 16 15 16
Gradual elimination of disputes complaints and claims concerning service
Square meters affected by complaints ()
17 12 08 12 09
Complaints by number of order items ()
10 11 11 10 10
Gradual improvement in staff skill levels
Employee turnover () 15 23 04 04 12
KeyPercentage of first grade product percentage ratio between the square meters of first grade products and the total square meters transferred to stockQuality rate percentage ratio between the square meters of first grade product transferred to stock and the square meters leaving the pressesScrap rate percentage difference between square meters of material leaving the presses and square meters of product actually transferred to stockProductivity ratio between the square meters transferred to stock and the total hours worked in the plantInnovation rate ratio between square meters sold belonging to series designed in the last three years and total square meters sold Florim uses this indicator to assess the effectiveness of its design process in terms of salesCoverage percentage ratio between square meters available for immediate shipment and the square meters on orderTotal portfolio of orders shippable within one month percentage ratio between the square meters which can be shipped in 30 days and the square meters on orderObsolete stock percentage ratio between the square meters of substandard discontinued produce and the total square meters in stock Stock turnover rate ratio between the square meters sold and the square meters in stockSquare meters affected by complaints percentage ratio between the square meters affected by complaints and the square meters soldComplaints by number of order items percentage ratio between the number of complaints and the number of items orderedEmployee turnover percentage ratio between the number of employees leaving the company and being replaced and the workforce at the start of the year
2016 Sustainability Report34
Casamood - Neutra 60 Collection
2016 Sustainability Report 35
OUR COMMITMENTS
The promises we keptIn our last Sustainability Report we committed to achieving a large number of objectives the following are the outcomes we attained
Relaunch of the ldquoCEDIT ndash Ceramiche drsquoItaliardquo brand OBJECTIVE ACHIEVED
Launch of the FLORIM stone brand OBJECTIVE ACHIEVED
Installation of a new latest-generation kiln at the Mordano plant OBJECTIVE ACHIEVED
Transfer of the Moscow showroom to new premises SCHEDULED FOR 2017
Creation of a new gatehouse at the Mordano plantOBJECTIVE POSTPONED TO GIVE PRIORITY TO THE CONSTRUCTION OF THE NEW FACTORY
Introduction of ERP system at Florim USA OBJECTIVE ACHIEVED
Installation of a new spray dryer and raw material handling system at Florim USA
OBJECTIVE ACHIEVED
Economic Responsibility
Renewal of certification of the Florim environmental and energy management system
OBJECTIVE ACHIEVED
Award of new certifications for collections manufactured with a high recycled material content
OBJECTIVE ACHIEVED
Continuation of work to reduce environmental impacts at Mordano especially with the reduction of energy costs
OBJECTIVE ACHIEVED
Continuation of the work to remove asbestos cement roofing materials at the Mordano plant
OBJECTIVE ACHIEVED
Expansion of the system which conveys rainwater to the treatment plant OBJECTIVE ACHIEVED
Reduction of the noise emissions of the air filtering systems OBJECTIVE ACHIEVED
Increase of recycling targets through constant awareness-raising amongst all staff and optimisation of recycling facilities
OBJECTIVE ACHIEVED
Continuation of replacement of the diesel forklift trucks for use on outdoor yards with electric vehicles
OBJECTIVE ACHIEVED
Environmental Responsibility
Running of fourth edition of Master Florim course with new procedures OBJECTIVE ACHIEVED
Creation of an internal refreshment area for the Fiorano office staff OBJECTIVE ACHIEVED
Improvement of corporate welfare through the activation of new free services and discounts tailored to employees needs
OBJECTIVE ACHIEVED
Continuation of the health meetings for the local community in association with Ospedale di Sassuolo Spa
OBJECTIVE ACHIEVED
Organization of new community events at Florim Gallery OBJECTIVE ACHIEVED
Organization of Florim Family Day 2016 A PARTY WAS ORGANISED FOR EMPLOYEES
Social Responsibility
2016 Sustainability Report36
The targets we set for ourselvesWe aim to achieve the following objectives in 2017
Economic Responsibility
Construction of a new factory at Mordano to produce large slabs
Launch of the project to unite the Florim spa sales organizations
Total restyling of the corporate and brand Internet sites
Launch of the HUB project - Intranet CRM Marketing Automation
New plants at Florim USA a press two sorting lines a polishing and rectifying line
New working spaces and cloakrooms for technical staff at the American plant
Environmental Responsibility
Purchase of a new cogenerator for the Mordano plant
Introduction of a new rainwater collection system at Fiorano
Land reclamation project involving covering of the Rio Spezzano stream at Fiorano
Implementation of new software for continual monitoring of energy impacts at Fiorano
Modernisation of the compressor room to improve energy impacts at Mordano
Increase of recycling targets through constant awareness-raising amongst all staff and optimisation of recycling facilities
Continuation of replacement of the diesel forklift trucks for use on outdoor yards with electric vehicles
Social Responsibility
Improvement of corporate welfare through the activation of new free services and discounts tailored to employees needs
Continuation of the health meetings for the local community in association with Ospedale di Sassuolo Spa
Organization of new community events at Florim Gallery
Organization of a new event for Florim spa employees
New offices for hospitality and events staff at Fiorano
2016 Sustainability Report 37
FLORIM USA
Profile and Economic ResponsibilityFlorim USA with registered office at Clarksville - Tennessee - and its subsidiary Florim Solution Inc have been part of the Florim Group since 2000 The Florim USA manufacturing plant one of the largest most technologically advanced in the United States produces porcelain stoneware tiles for the residential market and undertakes commercial projects in North America During the last few years Florim USA has implemented a growth and process optimization strategy which has generated significant technological progress with more innovations planned for the future The strategy adopted will put Florim USA at the worldwide state of the art in porcelain stoneware tile manufacture
In 2016 of the 18 million USD invested 147 was allocated for installation of a latest-generation raw material handling system and a large spray-dryer with an innovative sorting system Improvements were made to other parts of the process to increase their efficiency leading to a further reduction in emissions and scrap rates Additional investments are planned during 2017 to continue this dual trend of rising production with mitigation of environmental impact
The new Florim Flagship Store in New York (152 Madison Avenue 32nd Street)
2016 Sustainability Report38
Environmental ResponsibilityFlorim USA implements the same environmental policy as Florim and is committed to achieving the following objectives
bull reduction of the energy used in the production processbull improvement of the waste management process with a focus on recovery and reusebull introduction of new more eco-efficient technologiesbull adoption of integrated management systems
Florim USA has been pursuing a strategy of careful management of its operations and environmental impact for a number of years Here we summarise the main actions taken and the results achieved in 2016
bull installation of a latest-generation spray-dryer in 2016bull installation of an innovative raw material handling system in 2016bull 100 recycling of wastewater within the processbull optimisation of the management of water bottles with elimination of about 34200 of them per annumbull reuse of almost all production scrap (+99)bull 157000 kg of cardboard recycled in 2016bull award of two different types of product certificationbull 9300 kg of plastic recycledbull recycling of 17 complete trucks of pallets
Environmental Projects and Awards
Florim USA has received Clarksville Montgomery County Green Certification (CMCGC) CMCGC is a program designed to help companies learn and implement best practices in the area of environmental stewardship to sustain the local communityrsquos resources through a series of free workshops taught by local environmental specialists Since 2014 Florim has allocated some of its Environment Managers time for the running of these workshopsFlorim USA earned this green company certification thanks to a large number of projects first and foremost the one which eliminated the use of disposable water bottles replaced with individual reusable bottles provided by the company and a series of fill-up stations About 34200 bottles are removed from the waste cycle every year
During the latest phase of its plant optimization Florim USA has implemented a thorough construction material reuse policy In the various stages of demolition of the old plants including the old storage silos the concrete debris was recovered and reused in other construction worksThis project alone generated 11500 tons of recycled aggregate as well as several hundred tonnes of metal sold to a recycling firm
Environmental management system and eco-compatible products
Florim USArsquos products help builders and designers to meet the requirements for sustainable buildings as defined by the United States Green Building Council (USGBC) through the LEED Green Building Rating System This protocol evaluates and certifies the environmental sustainability of a building as a unit from its design to its day to day management To gain LEED credits many of the Florim USA product lines contain a significant percentage of recycled material (40 or more)This feature contributes to an increase in the LEED score in the projects where these products are installed In 2014 Florim USA together with a large number of other US tile manufacturers and the Tile Council of North America drew up a type III environmental product declaration (EPD) certified under the ISO 14025 standard This ceramic tile life-cycle analysis enables Florim USA products to gain LEED points under the new LEED v4 protocol
2016 Sustainability Report 39
Water use (gallonsper million square feetof finished tiles)
208137 216246 204962 195280 194268
Energy use
2012 2013 2014 2015 2016
Cubic feet of natural gas per million square feet of finished tiles 9343383 9149721 8331170 8390503 8380000
kWh per million square feet of finished tiles 510972 491171 450594 465976 490300
Emissions
Particulate material lt 21024 tonnes per annum
SO2 (sulphur dioxide) lt 1674 tonnes per annum
VOC (volatile organic compounds) lt 1245 tonnes per annum
NOx (oxides of nitrogen) lt 1501 tonnes per annum
Environmental performance indicators ndash summary
The following are the main environmental indicators related to the impact and performance of Florim USA during 2016
Pre-consumer recycled material
Its internal material recycling processes enable the company to minimise its environmental impact since most of the material which would otherwise be sent to landfills or other waste treatment centers is reusedbull Wastewater is entirely recycled within the production process without any discharge into the municipal drainsbull The material in the collection bags from the tile body and glaze preparation areas the press and glaze application is entirely recycled within the processbull All scrap fired tiles are entirely recycled within the processbull 157000 kg of cardboard was sold to an external recycled material dealerbull 17 trucks of unusable wooden pallets were sold to a pallet regeneration companybull About 9300 kg of waste shrink-wrap plastic film was recovered and recycled
Post-consumer recycled material
About 82000 kg of glass was removed from the flow of waste destined for the local landfill and recycled within the process Florim USA has signed an agreement with the local landfill for consignment of all the glass it handles which is collected and set aside for recycling
Water use disposal and reuse
The water used during the production process is recycled continually therefore no water is discharged into the municipal drains
The 2016 emissions figures are in line with those for previous years well below the standards laid down
Water use 2012 2013 2014 2015 2016
Water use (gallons per million square feet of finished tiles) 216246 204962 195280 194268 203928
2016 Sustainability Report40
Social Responsibility
Employees
The Florim USA workforce comprises 348 staff employed at the production site the Clarksville and Nashville outlet stores and the Florim Solution offices Of the 348 employees 273 are blue-collar workers and 75 office staff 5 employees are Italians on secondment to the United States Florim USA offers a number of benefits to full time employeesbull health and dental care insurancebull Vision insurancebull life insurance for employees and optionally for family membersbull temporary and permanent disability supportbull employee pension plan
2012 2013 2014 2015 2016
Workplace injuries 50 41 22 29 27
The Employee Assistance Program (EAP) also offers support to employees and their families in the event of psychological difficulty or other problems that can have a negative impact on their quality of life Florim USA supports all the costs of the program
Equal opportunities
Florim USA provides equal opportunities in all employment practices to all qualified employees and applicants regardless of race colour religion gender national origin age disability or membership of the armed forces or any other category protected by federal state or local laws
Health and safety
FLORIM USA is committed to ensuring a safe healthy workplace for all employees It therefore replaces old and obsolete equipment with new technologically more modern machinery and updates safety plans as new information gradually becomes availableAs well as an internal supervisor Florim USA has also appointed a health and safety committee which constantly monitors the plans effectiveness and makes any changes requiredThere are currently 20 plant employees who hold CPRfirst aid qualifications They occupy a variety of positions and work different shifts within the plant and have volunteered to attend training courses sponsored by the company for the award of these qualifications
Training
In 2016 every Florim USA employee attended an average of about 25 hours of training The training provided covered the operating procedures for the new equipment the main safety plans and the procedures for use of existing equipment for new employeesAll new staff undergo specific training for their department focusing on the safety-related aspects of the department concerned as well as more generalized safety training
Some of these themes includebull safe correct use of forklift trucksbull training on work in confined spacesbull shutdownwarning procedures and safe electrical practicesbull safe lifting procedures
2016 Sustainability Report 41
Florim USA ndash (Clarksville Tennessee)
For employees wishing to continue their education Florim USA offers assistance through the Educational Assistance Program It provides aid with the cost of education and textbooks and is available for any employee wishing to study for a technical qualification a diploma or a degreeThe plant staff training and education plan also includes various training schemes at Florim Italy where employees are instructed in the use of new equipment before it is installed at the American plantThroughout 2016 Florim USA will continue to provide a free e-learning course on its website for architects engineers and contractors (AEC) to improve their knowledge of sustainable porcelain stoneware tiles
Employee welfare activities
Florim USA employee picnic - In 2016 the company once again held its annual picnic for employees offering them a wide variety of foods games activities and live shows in an event which provided an unforgettable days enjoyment Within the event participants received prizes in the form of vouchers and gifts
Employee anniversary dinner - 2016 again saw the usual dinner to honour Florim USA employees with 5 10 15 20 or more years of service A special evening event was held in the presence of the Chairman and the other managers to celebrate the loyalty and hard work these employees have contributed during their careers with the firm
2016 Sustainability Report42
Local Community
During 2016 Florim USA continued to provide its support to a number of projects in its local areaSome of the main projects include
Scholarships - As part of its work to support the local community Florim has an established scheme which awards scholarships to deserving students at the Austin Peay State University in memory of Florim Group founder Giovanni Lucchese In December 2016 a delegation of Florim representatives attended a scholarship presentation lunch at the Austin Peay State University hosted by the President of the University
Montgomery County Green Certification Program - Florim USA staff actively participate in the Montgomery County Green Certification Program which aims to help companies learn and implement best practices with regard to safeguarding the environment and environmental resources
Donations - In 2016 the company again made a large number of donationsbull book collection for the Austin Peay State University Employees made a generous donation of used books in good condition for children and young people of the APSU in the hope of further promoting the education of future generationsbull to Community Cares the national organization that promotes the acceptance and social inclusion of individuals with Downs Syndromebull to the Aspire Clarksville Foundation a 501(c)(3) charitable foundation whose mission is to continuously improve the economy and the livability (quality of life) of the community by attracting significant capital investment and expansion by businesses and corporations thereby creating better opportunities and higher paying jobs for residentsbull to the Alzheimerrsquos Association a non-profit voluntary organization dedicated to the care and support of Alzheimers Disease sufferers and research into the condition Its aim is to eliminate the disease through the advancement of research to provide and enhance care and support for all affected and to reduce the risk of dementia through the promotion of brain health
Other activities - Every year Florim USA participates in the United Way Drive initiative to support local non-profit organizations which provide economic assistance and psychological support to persons in difficulty
Florim USA provides regular support to the Salvation Army by collecting canned foods for persons in needIn 2016 the company again organised a canned food collection for Manna Cafeacute in Clarksville TN Manna Cafeacute is a local non-profit organization based in Middle Tennessee with the primary mission of meeting peoples fundamental need for food before encouraging them to permanently change their lives for the better More than 15 of the population in Montgomery County are affected by food insecurity (about 28000 people) The percentage of children affected is about 215 a third of whom are excluded by income from federal programs such as free school mealsFinally donations were made tobull American Lung Association the leading organization working to save lives by improving lung health and preventing lung disease through research and educationbull Cheer for a Cure an organization that gives money directly to afflicting families who have a loved one suffering from cancer and need assistance to alleviate the added financial stressbull Habitat for Humanity Since 1992 Habitat for Humanity in Montgomery County Tennessee has worked with 93 low-income families with more than 210 children to revitalise various parts of Clarksville-Montgomery County by building new homes
2016 Sustainability Report 43
Quality SystemFlorim USA works under a Quality System certified to UNI EN ISO 9001 standards The following are some of the figures in brief
Objective Indicator 2012 2013 2014 2015 2016
Optimisation of control of the production process
Percentage of First Grade Product ()
932 917 940 949 9510
Quality rate () 883 857 893 906 909
Scrap rate () 56 65 48 45 45
KeyPercentage of first grade product ratio between square feet of first grade material and total square feet transferred to stockQuality rate ratio between square feet of first grade material transferred to stock and square feet pressedScrap rate ratio between square feet pressed and square feet of product actually transferred to stock
Other ActivitiesFlorim USA and trade shows
In 2016 Florim USA participated at a number of shows and events including Coverings the AIA Tennessee Convention Hardscape North America Total Solutions Plus Neocon International Pool - Spa and Patio Expo These events targeted at the various categories of industry professionals such as dealers and designers gave Florim USA the opportunity to present its new range of indoor and outdoor products
Design Center
In December 2015 Florim USA opened a design center showroom in Nashville (TN) in a strategic location close to the airport and the city center With a spacious area to host individual CEU presentations and workshops this design center has the potential to be a major resource for local architects In 2016 it was also awarded the ldquoOutstanding Boothrdquo booth prize at the 33rd edition of the Annual Home Decorating and Remodeling Show The location is the ideal place for sharing ideas finding inspiration and putting professionals and architects in touch with each other
Florim Nashville Design Center
2016 Sustainability Report44
GRI International Sustainability Indicators SDGsThe information below illustrates the correspondence between the Florim (Italian companies) 2016 Sustainability Report the GRI-G4 guidelines and the icons of the Sustainable Development Goals (SDGs) definitively adopted by the United NationsA description of the SDGs is available at wwwglobalcompactnetworkorg
GRI indicators
Description Page Reference to SDGs
1 Strategy and Analysis
G4-1 Statement from the most senior decision-maker of the organization 5
2 Organization profile
G4-3 Name of the organization 2
G4-4 Primary brands products andor services 9
G4-5 Location of the organizations headquarters 9
G4-6 Number and names of the countries where the organization operates 9
G4-7 Nature of ownership and legal form 14
G4-8 Markets served 9
G4-9 Scale of the organization 8 8
G4-10 Significant changes regarding size structure or ownership 8
G4-11 Employees covered by National Collective Bargaining Agreement 27
G4-12 Describe the supply chain 16
G4-13Significant changes regarding the organizationrsquos size structure ownership or its supply chain
Reporting process
launched
G4-14 Precautionary principle 22
G4-15 List of external commitments in which the company is involved 22 32 33
G4-16 Associations or interest groups in which the company is involvedwwwflorimit gt
about us gt partnerships
3 Identified material aspects and boundaries
G4-18 Process used to define the report content 6
G4-19 Material aspects 16
G4-20 Boundaries of each material aspect 6
G4-21 Boundaries of each material aspect outside the organizationPartial reporting
(pages 6 16)
G4-22 Explanation of the effect of any restatements of information provided in previous reports 6
G4-23Significant changes from previous reporting periods in the scope boundaries or measurement methods
6
3 Stakeholder engagement
G4-24 List of stakeholders 15
G4-25 Identification of stakeholders 15
G4-26 Stakeholder engagement 6 16
G4-27 Key topics and concerns that have been raised through stakeholder engagement 16
4 Boundary of the Report
G4-28 Reporting period 6
G4-29 Date of publication 2
G4-30 Reporting cycle 6
G4-31 Contacts and addresses for additional information 46
5 GRI Content Index
G4-32 Reporting option chosen 6 7
G4-33 External assurance of ReportThe Report is not
externally assured
2016 Sustainability Report 45
GRI indicators
Description Page Reference to SDGs
6 Governance
G4-34 Governance structure 14
7 Ethics and integrity
G4-56 Values principles standards and norms of behavior 13 16
Economic performance indicators
EC1 Direct economic value generated and distributed 19 25789
EC5 Wages 27 158
EC7 Development and impact of infrastructure investments and services supported 23 24 31 257911
Environmental performance indicators
G4-EN2 Percentage of materials used that are recycled input materials 17 22 23 812
G4-EN3 Energy consumption within the organization 24 781213
G4-EN6 Reduction of energy consumption 17 24 71213
G4-EN7 Reductions in energy requirements of products and servicesPartial reporting
(page 22)71213
G4-EN8 Total water withdrawal by source 17 23 6
G4-EN10 Percentage and total volume of water recycled and reused 17 21 23 612
G4-EN11 Biodiversity 23 615
G4-EN15 Total indirect greenhouse gas emissions by weight 25 3121315
G4-EN16 Total indirect greenhouse gas emissions by weight 25 3121315
G4-EN19 Reduction of greenhouse gas emissions 8 24 1315
G4-EN21 NOx SOx and other significant air emissions 25 31215
G4-EN22 Total water discharge by quality and destination 23 6
G4-EN23 Total weight of waste by type 17 22 3612
G4-EN27 Impact mitigation of environmental impacts of products and services 23 68121315
G4-EN29 Monetary value of significant fines 22 16
G4-EN30 Significant environmental impacts of transporting products and goodsmaterialsPartial reporting
(page 25)111213
Social performance indicators
G4-LA1 Total number and rates of new employee hires and employee turnoverPartial reporting
(pages 17 27)8
G4-LA6 Workplace injury ratesPartial reporting
(page 17)38
G4-LA9 Average hours of training per year per employee 28 48
G4-LA12Composition of governance bodies and breakdown of employees according to gender age group etc
27 58
G4-LA13 Ratio of basic salary and total remuneration of women to men 27 5810
Society
G4-SO1 Operations with local community engagement 12 31 16
G4-SO3 Operations assessed for risks related to corruptionPartial reporting
(page 13)
Product responsibility
G4-PR1 Assessment of health and safety impacts for improvement 23 32
G4-PR3 Type of information about products and services required by the procedures 32 12
G4-PR5 Proceedings relating to customer satisfaction including surveys conducted to measure it 33
G4-PR6 Sale of banned or disputed products 32
G4-PR8 Number of substantiated complaints regarding breaches of privacy 32 16
2016 Sustainability Report46
Your Assessment
You are kindly requested to take a few minutes of your time to give us your assessment and any suggestions to enable us to improve future editions of our Sustainability Report
Click here to send us your feedback
To keep up to date with our business
Spazio CEDIT - interior (Milan)
wwwflorimiten
Florim Ceramiche
Florim4Architects
Florim_ceramiche
Florim Ceramiche spa
Florim Ceramiche
Florim Ceramiche
For any further information please feel free to contact our communications department comunicazioneflorimit
2016 Sustainability Report 47
Premio Lucchese - Florim Gallery (Fiorano Modenese - Modena Italy)
Intrapresaelig Guggenheim Collection - Massimo Bottura in Florim Gallery (Fiorano Modenese - Modena Italy)
Panathlon Christmas Gala - Florim Gallery (Fiorano Modenese - Modena Italy)
2016 Sustainability Report48
White Christmas Party - Florim Gallery (Fiorano Modenese - Modena Italy)
Cersaie - Mario Biondi in Florim Gallery (Fiorano Modenese - Modena Italy)
Dal buio alla luce - Social event at Florim Gallery (Fiorano Modenese - Modena Italy)
2016 Sustainability Report 49
Florim Gallery entrance (Fiorano Modenese - MO)
2016 Sustainability Report52
Florim Ceramiche spaVia Canaletto 24 - 41042 Fiorano Modenese (Modena Italy) - Tel +39 0536 840111 - wwwflorimit
2016 Sustainability Report26
CEDIT ndash Creative Composition
2016 Sustainability Report 27
Workforce Composition
In 2016 the workforce included 27 people with disabilities 6 women and 21 menBearing in mind the job descriptions arising from the specific industrial sector the breakdown between men and women is in line with the industry average Male office workers and executives earn an average of 10 more than women for jobs of equal responsibility Among blue-collar workers the difference is 7 The company had a total of 29 foreign employees 24 at Fiorano and 5 at Mordano
Manager Executive Office worker
2013 2014 2015 2016 2013 2014 2015 2016 2013 2014 2015 2016
Women 2 3 3 3 3 1 1 1 137 142 133 149
Men 18 21 20 18 21 24 25 28 127 132 128 132
Total 20 24 23 21 24 25 26 29 264 274 261 281
Office ancillary Blue-collar worker Total
2013 2014 2015 2016 2013 2014 2015 2016 2013 2014 2015 2016
Women 18 16 25 19 226 219 212 196 385 381 375 368
Men 64 68 79 64 376 358 356 377 607 603 607 619
Total 82 84 104 83 602 577 568 573 992 984 982 987
Social Responsibility
Employees amp Corporate welfare
Its employees are the heart and soul of Florim they provide its character and its DNA Since 2009 when the current major economic crisis began Florim has undertaken a number of income support programs for its workforce Below we summarise some of the ongoing programmes and others run in 2016bull Ending of the Income Support Program for the Mordano plantbull Agreement with Sassuolo Hospital under which Florim employees and their family members enjoy discounts and shorter waiting times for specialist examinations and outpatient diagnostic tests performed on a private basisbull Special agreements with local health facilitiesbull Tax advice at special rates bull Special terms for banking services with financial consultants on-sitebull Discounts on the purchase of Florim products for employees homesbull Free entry to the Peggy Guggenheim Collection in Venice for employees and concessions for family membersbull Free provision of water and mineral salts in the plants during the summerbull Distribution of fuel vouchers to employees for the Christmas holidays
Summer Play Schemes and Cregraveches
In 2016 the summer play schemes for the children of employees at Fiorano and Mordano were continued for the fifth year in succession Seven different centers across the area between Modena and Bologna hosted 85 children (twice the number of the previous year) the company paid the fee for two weeks attendanceWhats more since 2013 the company has negotiated special terms with local cregraveches which now offer a number of places for employeesrsquo children at a reduced fee
2016 Sustainability Report28
Human Resources Management Policies
In July 2015 on renewal of the in-house supplement to the national employment contract the Management introduced a new phase in its relations with the Trade Unions with the aim of continuing and improving the good relationships enjoyed for decadesThe new company contract applied for all employees at the Fiorano headquarters includes more facilitations for part-time working the willingness to allow flexitime where feasible and the commitment to invest in staff training in order to generate full benefits from intellectual capital The company and the trades unions agreed on a plan to improve efficiency fundamental for maintaining the current level of competitiveness by establishing improvement in Production Efficiency and EBITDA as criteria for the payment of the new Performance Bonus The individual Attendance Score is considered together with these parameters The 2016 Performance Bonus in its first year of application was 20 higher than that paid in 2015 In addition in response to employees requests the Company increased the number of approved canteens extending the choice available and also introduced weekly laundering of work clothing for all production workersWith regard to applications for severance pay advances the Company confirms its commitment to continuing the policy implemented so far
Training
Florim believes that in-house training plays a key role in the companyrsquos development and provides a tool for stimulating and fulfilling the potential of its human resourcesMore than 10600 training hours were provided in 2016 to 847 people with an average of more than 11 hours of training per employee New projects included a 6-month on-line English language course which attracted a large number of participants and two highly structured training courses for the sales division and the communication department A retraining program for workers at the Mordano plant was also completed it comprised 4 technical courses attended by 31 people for an average of 13 hours per person Another new entry for 2016 was an innovative procedure for acquiring information about training needs using an on-line questionnaire available to all employees as well as line managers specific recommendations The Master in Florim project is discussed in depth in the specific section
Health and Safety
Florim was the first Italian ceramics manufacturer to receive BS OHSAS 18001 (Occupational Health amp Safety Assessment Series) certification from TUumlV this international standard certifies the implementation of an internal management system oriented towards occupational health and safetyThis major award confirms the companys constant commitment to the well-being of its employees Every year in addition to engineering inspections and machinery maintenance a number of hours of safety training are organised to raise awareness among workers and supervisors Specifically in 2016 2849 hours were dedicated to safety training and a significant reduction in injury rates was recordedMoreover BLSD refresher courses are continuously held for the team of Florim employees trained in first-aid operations and the use of the defibrillators available on site
2012 2013 2014 2015 2016
Number of workplace injuries 63 62 74 56 43
2016 Sustainability Report 29
The Master in Florim organized for the fourth time in 2016 is a vocational training project which aims to bridge the gap between education (high school or university) and the world of work The program which is one of the companys Social Responsibility projects sets out to help young people to get to know the company through a well structured work experience plan It offers a distinctively northern European approach with a method which alternates classroom teaching with internships in the various areas of the company Participants new university or high school graduates specialising in various subjects all below 30 years of age are therefore able to gain hands-on experience of all Florim departments from RampD to the production process and product distribution for an all-inclusive vision The MASTER courses ambitious aim is to match the individual participants talents with the companys real needs At the end of each edition the company hires all or some of the selected candidates enabling it to acquire new skills new experiences and new energy
Master 40 in figures
20 young people taking part6 months of training13 external lecturers264 hours of classroom teaching392 hours of practical training4 company visits (Ferrari Tetrapak Cremonini and Ducati)50 days of work experience on rotation involving 15 departments1 month of project work
The projects prestige is enhanced by its economic context since Florim pays the young participants for the entire period and its aim is to deal with the thorny problem of youth unemployment The Master has won approval from various faculties at major Italian universities The project was also a winner in the Emilia-Romagna Regions 2016 awards for Corporate Social Responsibility projects run in the local community A prize in the ldquoBusiness and Educationrdquo category was assigned to the Master project which aims to give young people the skills required for sustainable development
Master in Florim
2016 Sustainability Report
Watch the videoof the 4th edition
2016 Sustainability Report30
Local Community amp Culture
This chapter describes a number of programs Florim runs for the local community in the area where it originated and where it has been working for more than 50 years
Politecnico di Milano
Since the 20052006 academic year Florim has been a partner sponsor of a large number of Postgraduate Courses run by POLIDesign the Politecnico di Milano consortium which organizes its Master Degree coursesAlso in association with POLIDesign since 2012 Florims Milan showroom has hosted several design events for architects and designers of every nationality
Aziende modenesi per la RSI
ldquoAziende Modenesi per la RSIrdquo an independent open inclusive association of companies in the Modena area which believe in the principles and values of Corporate Social Responsibility was established by public deed on 30 September 2014 with Florim as a founding member Florim hosts the associations member companies every year to discuss the various topics proposed
Premio Lucchese
The Premio Lucchese presented for the twenty-ninth time in 2016 was established in memory of Giovanni Lucchese and consists of scholarships awarded to students at the ldquoAlessandro Voltardquo Technical High School in Sassuolo who graduate with full marks The award ceremony held every year at the Florim Gallery in association with Societagrave Ceramica Italiana of Bologna includes a talk given by a leading personality on a topic of current interest to an audience of eager young listeners
Intrapresaelig Collezione Guggenheim
As befits a company that combines the values of its local community and historic and artistic heritage with a flair for research and innovation Florim recently launched a partnership with the Peggy Guggenheim Collection Since its foundation Florim has always had a unique ability to incorporate the true cultural significance of its industry in its business model and by this project once again confirms its commitment to promoting art by supporting a collection of extraordinary beauty
Fondazione Ing Giovanni Lucchese
More than thirty years after the untimely death of Giovanni Lucchese ndash founder of what was then Floor Gres currently Florim ndash in 2013 his family established a Foundation in his name which since then has funded organizations and associations that support families in need in the ceramics district The Foundation also supports a variety of projects such as the summer play scheme for employees children the Premio Lucchese and the Florim HealthampTraining Center described in more detail below
The main projects undertaken in 2016 include the funding of the purchase of 10 defibrillators for the Municipality of Fiorano and the contributions made to the purchase of paediatric ambulances for the local area and to support the Parish charitable organizations and social services in the district
Watch the Premio Lucchese video
The project run jointly by Florim and Sassuolo Hospital adopts a completely new model combining industrial culture and healthcare in an original way to benefit the local people and community thanks to the coming-together of a ceramic coverings manufacturer and the public-private joint venture Ospedale di Sassuolo Spa Florim HealthampTraining is the synthesis of this idea an experimental center which promotes local training for healthcare and other staff health education and information advanced medical simulation and research
The Center
On the main Florim site and opened on 16 April 2014 the Center is 550 square meters in area and contains a modular lecture theatre able to seat over 100 people and a number of classrooms for seminars and lessons At its heart is a state-of-the-art control room crammed with technology that operates dummies capable of reproducing human functions of all kinds Advanced simulation is a major aid to maintaining the skills of emergency healthcare workers with a particular focus on pediatric and neonatal resuscitation
Health meetings
Designed as a space for community use the Center also aims to become a place where all sections of the population - workers schoolchildren parents teachers volunteers and even just members of the public - can learn about preventive health care and acquire first aid skills After the distribution to Florim employees of a questionnaire surveying their training needs and preferences a Center Scientific Committee of Sassuolo Hospital medical personnel was appointed and drew up a plan of bi-monthly ldquoHealth meetingsrdquo All meetings are led by doctors with expertise in the various topics who answer the many questions from the audience at the end of their talks Between its opening and the end of December 2016 the Center hosted 13 meetings on a variety of topics attended by about 1000 people including employees their family members and the community at large
Healthcare discounts for Florim employees
The project also includes a major welfare program for all Florim employees and their family members entitling them to discounts and shorter waiting times for specialist examinations and outpatient diagnostic tests performed on a private basis
American Heart Association
The world-famous American Heart Association (AHA) is the oldest and most respected American voluntary organization dedicated to the fight against cardiovascular diseases and strokes In 2015 the AHA via the Simaid International Training Center named the Florim HealthampTraining Center as an Authorized Training Site for basic and advanced cardiopulmonary resuscitation
Florim HealthampTraining Center
2016 Sustainability Report
Watch the Health amp Training Center video
2016 Sustainability Report32
Product Responsibility
Here we summarize the concept of Made in Florim denoting a product that encapsulates the companys core values passion innovation a constant commitment to improvement and corporate social responsibility
Florim product certifications
CE Marking guarantees the user that the materials purchased meet the requirements of the relevant regulations and that the characteristics concerned are virtually unchanged for all production lots It is a declaration of conformity which protects the consumerrsquos safety The presence of the CE Marking on packaging guarantees that Florim products comply with the relevant regulatory requirements
Ecolabel (EC Regulation 662010) is a certification granted to products which comply with ecological and performance criteria set at a European level concerning raw material extraction supplier selection manufacturing processes packaging distribution use and disposal The certified Florim collections are Architech Ecotech Reverse Walks 10 by Floor Gres and Pietra del Nord under the Rex brand
Several ceramic tile collections bearing the Florim brands have earned certification from Bureau Veritas for their pre-consumer recycled material content These articles are therefore fully eco-compatible and can meet the environmental sustainability requirements imposed by many international certifications
Florim is a member of the US Green Building Council (USGBC) the most important association which promotes the reduction of buildings negative impact on the environment To allow the effective monitoring a projects level of sustainability the USGBC has developed a certification procedure for the development of sustainable buildings which assess and certifies the sustainability of a building in its entirety Florim materials are able to help to gain LEED points in a number of areas (data available on the Florim brand websites)
Florim has achieved the prestigious Greenguard certification for all its products Issued by the American body UL Environment this certification aims to reduce indoor pollution caused by interior design systems and materials UL Environment thus aims to protect health by improving air quality and reducing peoples exposure to chemicals and other pollutants Florim has also achieved Greenguard Gold Certification which imposes even stricter limits to confirm that a given product is suitable for use even in locations such as schools and health care facilities
The EPD or Environmental Product Declaration is a document which defines the environmental impacts arising from production In 2016 Florim participated in the study - certified by the German organization IBU - performed on the ceramics industry average data which aims to raise international awareness of the excellence of the environmental standards achieved
Beyond the standardsMade in Florim products are a guarantee of safety highly innovative content and eco-friendliness The people who produce them work in a safe place and in ethically sustainable conditions Due to their nature all Florim products are guaranteed free from pollutant emissions do not accumulate electrostatic charges are frostproof and completely inert and are undamaged by contact with flames The Groups Internet sites and collection catalogues contain the technical data sheets which detail the product information (slip-resistance breaking strain abrasion resistance etc) for every collection as well as its recycled material content with the relative certificates
During the period under consideration no banned products were placed on the market and the company was not found guilty of any breaches of the law with regard to data protection or its marketing and communication activities
EU Ecolabel nr IT2104
2016 Sustainability Report 33
Quality SystemThe current ISO 9001 standards define quality as the ability to satisfy explicit or implicit needs via a product or a service A Quality System implies constant improvement of company processes in order to realise products that always satisfy the customerrsquos needs Further to the 2016 audit Florim obtained the renewal of its UNI EN ISO 90012015 certification for the design manufacture and sale of all categories of ceramic tile
Objective Indicator 2012 2013 2014 2015 2016
Continual improvement of control of the production process
Percentage of First Grade Product ()
924 943 942 952 956
Quality rate () 883 905 903 905 909
Scrap rate () 44 41 42 42 49
Productivity (sq mhour) 186 188 186 190 200
Improvements in sales performance and customer satisfaction
Innovation rate () 330 296 367 455 364
Coverage () 795 714 814 813 816
Total portfolio shippable within one month ()
911 837 888 893 897
Optimization of range and stocks
Obsolete stock () 172 126 165 120 69
Stock turnover rate () 13 15 16 15 16
Gradual elimination of disputes complaints and claims concerning service
Square meters affected by complaints ()
17 12 08 12 09
Complaints by number of order items ()
10 11 11 10 10
Gradual improvement in staff skill levels
Employee turnover () 15 23 04 04 12
KeyPercentage of first grade product percentage ratio between the square meters of first grade products and the total square meters transferred to stockQuality rate percentage ratio between the square meters of first grade product transferred to stock and the square meters leaving the pressesScrap rate percentage difference between square meters of material leaving the presses and square meters of product actually transferred to stockProductivity ratio between the square meters transferred to stock and the total hours worked in the plantInnovation rate ratio between square meters sold belonging to series designed in the last three years and total square meters sold Florim uses this indicator to assess the effectiveness of its design process in terms of salesCoverage percentage ratio between square meters available for immediate shipment and the square meters on orderTotal portfolio of orders shippable within one month percentage ratio between the square meters which can be shipped in 30 days and the square meters on orderObsolete stock percentage ratio between the square meters of substandard discontinued produce and the total square meters in stock Stock turnover rate ratio between the square meters sold and the square meters in stockSquare meters affected by complaints percentage ratio between the square meters affected by complaints and the square meters soldComplaints by number of order items percentage ratio between the number of complaints and the number of items orderedEmployee turnover percentage ratio between the number of employees leaving the company and being replaced and the workforce at the start of the year
2016 Sustainability Report34
Casamood - Neutra 60 Collection
2016 Sustainability Report 35
OUR COMMITMENTS
The promises we keptIn our last Sustainability Report we committed to achieving a large number of objectives the following are the outcomes we attained
Relaunch of the ldquoCEDIT ndash Ceramiche drsquoItaliardquo brand OBJECTIVE ACHIEVED
Launch of the FLORIM stone brand OBJECTIVE ACHIEVED
Installation of a new latest-generation kiln at the Mordano plant OBJECTIVE ACHIEVED
Transfer of the Moscow showroom to new premises SCHEDULED FOR 2017
Creation of a new gatehouse at the Mordano plantOBJECTIVE POSTPONED TO GIVE PRIORITY TO THE CONSTRUCTION OF THE NEW FACTORY
Introduction of ERP system at Florim USA OBJECTIVE ACHIEVED
Installation of a new spray dryer and raw material handling system at Florim USA
OBJECTIVE ACHIEVED
Economic Responsibility
Renewal of certification of the Florim environmental and energy management system
OBJECTIVE ACHIEVED
Award of new certifications for collections manufactured with a high recycled material content
OBJECTIVE ACHIEVED
Continuation of work to reduce environmental impacts at Mordano especially with the reduction of energy costs
OBJECTIVE ACHIEVED
Continuation of the work to remove asbestos cement roofing materials at the Mordano plant
OBJECTIVE ACHIEVED
Expansion of the system which conveys rainwater to the treatment plant OBJECTIVE ACHIEVED
Reduction of the noise emissions of the air filtering systems OBJECTIVE ACHIEVED
Increase of recycling targets through constant awareness-raising amongst all staff and optimisation of recycling facilities
OBJECTIVE ACHIEVED
Continuation of replacement of the diesel forklift trucks for use on outdoor yards with electric vehicles
OBJECTIVE ACHIEVED
Environmental Responsibility
Running of fourth edition of Master Florim course with new procedures OBJECTIVE ACHIEVED
Creation of an internal refreshment area for the Fiorano office staff OBJECTIVE ACHIEVED
Improvement of corporate welfare through the activation of new free services and discounts tailored to employees needs
OBJECTIVE ACHIEVED
Continuation of the health meetings for the local community in association with Ospedale di Sassuolo Spa
OBJECTIVE ACHIEVED
Organization of new community events at Florim Gallery OBJECTIVE ACHIEVED
Organization of Florim Family Day 2016 A PARTY WAS ORGANISED FOR EMPLOYEES
Social Responsibility
2016 Sustainability Report36
The targets we set for ourselvesWe aim to achieve the following objectives in 2017
Economic Responsibility
Construction of a new factory at Mordano to produce large slabs
Launch of the project to unite the Florim spa sales organizations
Total restyling of the corporate and brand Internet sites
Launch of the HUB project - Intranet CRM Marketing Automation
New plants at Florim USA a press two sorting lines a polishing and rectifying line
New working spaces and cloakrooms for technical staff at the American plant
Environmental Responsibility
Purchase of a new cogenerator for the Mordano plant
Introduction of a new rainwater collection system at Fiorano
Land reclamation project involving covering of the Rio Spezzano stream at Fiorano
Implementation of new software for continual monitoring of energy impacts at Fiorano
Modernisation of the compressor room to improve energy impacts at Mordano
Increase of recycling targets through constant awareness-raising amongst all staff and optimisation of recycling facilities
Continuation of replacement of the diesel forklift trucks for use on outdoor yards with electric vehicles
Social Responsibility
Improvement of corporate welfare through the activation of new free services and discounts tailored to employees needs
Continuation of the health meetings for the local community in association with Ospedale di Sassuolo Spa
Organization of new community events at Florim Gallery
Organization of a new event for Florim spa employees
New offices for hospitality and events staff at Fiorano
2016 Sustainability Report 37
FLORIM USA
Profile and Economic ResponsibilityFlorim USA with registered office at Clarksville - Tennessee - and its subsidiary Florim Solution Inc have been part of the Florim Group since 2000 The Florim USA manufacturing plant one of the largest most technologically advanced in the United States produces porcelain stoneware tiles for the residential market and undertakes commercial projects in North America During the last few years Florim USA has implemented a growth and process optimization strategy which has generated significant technological progress with more innovations planned for the future The strategy adopted will put Florim USA at the worldwide state of the art in porcelain stoneware tile manufacture
In 2016 of the 18 million USD invested 147 was allocated for installation of a latest-generation raw material handling system and a large spray-dryer with an innovative sorting system Improvements were made to other parts of the process to increase their efficiency leading to a further reduction in emissions and scrap rates Additional investments are planned during 2017 to continue this dual trend of rising production with mitigation of environmental impact
The new Florim Flagship Store in New York (152 Madison Avenue 32nd Street)
2016 Sustainability Report38
Environmental ResponsibilityFlorim USA implements the same environmental policy as Florim and is committed to achieving the following objectives
bull reduction of the energy used in the production processbull improvement of the waste management process with a focus on recovery and reusebull introduction of new more eco-efficient technologiesbull adoption of integrated management systems
Florim USA has been pursuing a strategy of careful management of its operations and environmental impact for a number of years Here we summarise the main actions taken and the results achieved in 2016
bull installation of a latest-generation spray-dryer in 2016bull installation of an innovative raw material handling system in 2016bull 100 recycling of wastewater within the processbull optimisation of the management of water bottles with elimination of about 34200 of them per annumbull reuse of almost all production scrap (+99)bull 157000 kg of cardboard recycled in 2016bull award of two different types of product certificationbull 9300 kg of plastic recycledbull recycling of 17 complete trucks of pallets
Environmental Projects and Awards
Florim USA has received Clarksville Montgomery County Green Certification (CMCGC) CMCGC is a program designed to help companies learn and implement best practices in the area of environmental stewardship to sustain the local communityrsquos resources through a series of free workshops taught by local environmental specialists Since 2014 Florim has allocated some of its Environment Managers time for the running of these workshopsFlorim USA earned this green company certification thanks to a large number of projects first and foremost the one which eliminated the use of disposable water bottles replaced with individual reusable bottles provided by the company and a series of fill-up stations About 34200 bottles are removed from the waste cycle every year
During the latest phase of its plant optimization Florim USA has implemented a thorough construction material reuse policy In the various stages of demolition of the old plants including the old storage silos the concrete debris was recovered and reused in other construction worksThis project alone generated 11500 tons of recycled aggregate as well as several hundred tonnes of metal sold to a recycling firm
Environmental management system and eco-compatible products
Florim USArsquos products help builders and designers to meet the requirements for sustainable buildings as defined by the United States Green Building Council (USGBC) through the LEED Green Building Rating System This protocol evaluates and certifies the environmental sustainability of a building as a unit from its design to its day to day management To gain LEED credits many of the Florim USA product lines contain a significant percentage of recycled material (40 or more)This feature contributes to an increase in the LEED score in the projects where these products are installed In 2014 Florim USA together with a large number of other US tile manufacturers and the Tile Council of North America drew up a type III environmental product declaration (EPD) certified under the ISO 14025 standard This ceramic tile life-cycle analysis enables Florim USA products to gain LEED points under the new LEED v4 protocol
2016 Sustainability Report 39
Water use (gallonsper million square feetof finished tiles)
208137 216246 204962 195280 194268
Energy use
2012 2013 2014 2015 2016
Cubic feet of natural gas per million square feet of finished tiles 9343383 9149721 8331170 8390503 8380000
kWh per million square feet of finished tiles 510972 491171 450594 465976 490300
Emissions
Particulate material lt 21024 tonnes per annum
SO2 (sulphur dioxide) lt 1674 tonnes per annum
VOC (volatile organic compounds) lt 1245 tonnes per annum
NOx (oxides of nitrogen) lt 1501 tonnes per annum
Environmental performance indicators ndash summary
The following are the main environmental indicators related to the impact and performance of Florim USA during 2016
Pre-consumer recycled material
Its internal material recycling processes enable the company to minimise its environmental impact since most of the material which would otherwise be sent to landfills or other waste treatment centers is reusedbull Wastewater is entirely recycled within the production process without any discharge into the municipal drainsbull The material in the collection bags from the tile body and glaze preparation areas the press and glaze application is entirely recycled within the processbull All scrap fired tiles are entirely recycled within the processbull 157000 kg of cardboard was sold to an external recycled material dealerbull 17 trucks of unusable wooden pallets were sold to a pallet regeneration companybull About 9300 kg of waste shrink-wrap plastic film was recovered and recycled
Post-consumer recycled material
About 82000 kg of glass was removed from the flow of waste destined for the local landfill and recycled within the process Florim USA has signed an agreement with the local landfill for consignment of all the glass it handles which is collected and set aside for recycling
Water use disposal and reuse
The water used during the production process is recycled continually therefore no water is discharged into the municipal drains
The 2016 emissions figures are in line with those for previous years well below the standards laid down
Water use 2012 2013 2014 2015 2016
Water use (gallons per million square feet of finished tiles) 216246 204962 195280 194268 203928
2016 Sustainability Report40
Social Responsibility
Employees
The Florim USA workforce comprises 348 staff employed at the production site the Clarksville and Nashville outlet stores and the Florim Solution offices Of the 348 employees 273 are blue-collar workers and 75 office staff 5 employees are Italians on secondment to the United States Florim USA offers a number of benefits to full time employeesbull health and dental care insurancebull Vision insurancebull life insurance for employees and optionally for family membersbull temporary and permanent disability supportbull employee pension plan
2012 2013 2014 2015 2016
Workplace injuries 50 41 22 29 27
The Employee Assistance Program (EAP) also offers support to employees and their families in the event of psychological difficulty or other problems that can have a negative impact on their quality of life Florim USA supports all the costs of the program
Equal opportunities
Florim USA provides equal opportunities in all employment practices to all qualified employees and applicants regardless of race colour religion gender national origin age disability or membership of the armed forces or any other category protected by federal state or local laws
Health and safety
FLORIM USA is committed to ensuring a safe healthy workplace for all employees It therefore replaces old and obsolete equipment with new technologically more modern machinery and updates safety plans as new information gradually becomes availableAs well as an internal supervisor Florim USA has also appointed a health and safety committee which constantly monitors the plans effectiveness and makes any changes requiredThere are currently 20 plant employees who hold CPRfirst aid qualifications They occupy a variety of positions and work different shifts within the plant and have volunteered to attend training courses sponsored by the company for the award of these qualifications
Training
In 2016 every Florim USA employee attended an average of about 25 hours of training The training provided covered the operating procedures for the new equipment the main safety plans and the procedures for use of existing equipment for new employeesAll new staff undergo specific training for their department focusing on the safety-related aspects of the department concerned as well as more generalized safety training
Some of these themes includebull safe correct use of forklift trucksbull training on work in confined spacesbull shutdownwarning procedures and safe electrical practicesbull safe lifting procedures
2016 Sustainability Report 41
Florim USA ndash (Clarksville Tennessee)
For employees wishing to continue their education Florim USA offers assistance through the Educational Assistance Program It provides aid with the cost of education and textbooks and is available for any employee wishing to study for a technical qualification a diploma or a degreeThe plant staff training and education plan also includes various training schemes at Florim Italy where employees are instructed in the use of new equipment before it is installed at the American plantThroughout 2016 Florim USA will continue to provide a free e-learning course on its website for architects engineers and contractors (AEC) to improve their knowledge of sustainable porcelain stoneware tiles
Employee welfare activities
Florim USA employee picnic - In 2016 the company once again held its annual picnic for employees offering them a wide variety of foods games activities and live shows in an event which provided an unforgettable days enjoyment Within the event participants received prizes in the form of vouchers and gifts
Employee anniversary dinner - 2016 again saw the usual dinner to honour Florim USA employees with 5 10 15 20 or more years of service A special evening event was held in the presence of the Chairman and the other managers to celebrate the loyalty and hard work these employees have contributed during their careers with the firm
2016 Sustainability Report42
Local Community
During 2016 Florim USA continued to provide its support to a number of projects in its local areaSome of the main projects include
Scholarships - As part of its work to support the local community Florim has an established scheme which awards scholarships to deserving students at the Austin Peay State University in memory of Florim Group founder Giovanni Lucchese In December 2016 a delegation of Florim representatives attended a scholarship presentation lunch at the Austin Peay State University hosted by the President of the University
Montgomery County Green Certification Program - Florim USA staff actively participate in the Montgomery County Green Certification Program which aims to help companies learn and implement best practices with regard to safeguarding the environment and environmental resources
Donations - In 2016 the company again made a large number of donationsbull book collection for the Austin Peay State University Employees made a generous donation of used books in good condition for children and young people of the APSU in the hope of further promoting the education of future generationsbull to Community Cares the national organization that promotes the acceptance and social inclusion of individuals with Downs Syndromebull to the Aspire Clarksville Foundation a 501(c)(3) charitable foundation whose mission is to continuously improve the economy and the livability (quality of life) of the community by attracting significant capital investment and expansion by businesses and corporations thereby creating better opportunities and higher paying jobs for residentsbull to the Alzheimerrsquos Association a non-profit voluntary organization dedicated to the care and support of Alzheimers Disease sufferers and research into the condition Its aim is to eliminate the disease through the advancement of research to provide and enhance care and support for all affected and to reduce the risk of dementia through the promotion of brain health
Other activities - Every year Florim USA participates in the United Way Drive initiative to support local non-profit organizations which provide economic assistance and psychological support to persons in difficulty
Florim USA provides regular support to the Salvation Army by collecting canned foods for persons in needIn 2016 the company again organised a canned food collection for Manna Cafeacute in Clarksville TN Manna Cafeacute is a local non-profit organization based in Middle Tennessee with the primary mission of meeting peoples fundamental need for food before encouraging them to permanently change their lives for the better More than 15 of the population in Montgomery County are affected by food insecurity (about 28000 people) The percentage of children affected is about 215 a third of whom are excluded by income from federal programs such as free school mealsFinally donations were made tobull American Lung Association the leading organization working to save lives by improving lung health and preventing lung disease through research and educationbull Cheer for a Cure an organization that gives money directly to afflicting families who have a loved one suffering from cancer and need assistance to alleviate the added financial stressbull Habitat for Humanity Since 1992 Habitat for Humanity in Montgomery County Tennessee has worked with 93 low-income families with more than 210 children to revitalise various parts of Clarksville-Montgomery County by building new homes
2016 Sustainability Report 43
Quality SystemFlorim USA works under a Quality System certified to UNI EN ISO 9001 standards The following are some of the figures in brief
Objective Indicator 2012 2013 2014 2015 2016
Optimisation of control of the production process
Percentage of First Grade Product ()
932 917 940 949 9510
Quality rate () 883 857 893 906 909
Scrap rate () 56 65 48 45 45
KeyPercentage of first grade product ratio between square feet of first grade material and total square feet transferred to stockQuality rate ratio between square feet of first grade material transferred to stock and square feet pressedScrap rate ratio between square feet pressed and square feet of product actually transferred to stock
Other ActivitiesFlorim USA and trade shows
In 2016 Florim USA participated at a number of shows and events including Coverings the AIA Tennessee Convention Hardscape North America Total Solutions Plus Neocon International Pool - Spa and Patio Expo These events targeted at the various categories of industry professionals such as dealers and designers gave Florim USA the opportunity to present its new range of indoor and outdoor products
Design Center
In December 2015 Florim USA opened a design center showroom in Nashville (TN) in a strategic location close to the airport and the city center With a spacious area to host individual CEU presentations and workshops this design center has the potential to be a major resource for local architects In 2016 it was also awarded the ldquoOutstanding Boothrdquo booth prize at the 33rd edition of the Annual Home Decorating and Remodeling Show The location is the ideal place for sharing ideas finding inspiration and putting professionals and architects in touch with each other
Florim Nashville Design Center
2016 Sustainability Report44
GRI International Sustainability Indicators SDGsThe information below illustrates the correspondence between the Florim (Italian companies) 2016 Sustainability Report the GRI-G4 guidelines and the icons of the Sustainable Development Goals (SDGs) definitively adopted by the United NationsA description of the SDGs is available at wwwglobalcompactnetworkorg
GRI indicators
Description Page Reference to SDGs
1 Strategy and Analysis
G4-1 Statement from the most senior decision-maker of the organization 5
2 Organization profile
G4-3 Name of the organization 2
G4-4 Primary brands products andor services 9
G4-5 Location of the organizations headquarters 9
G4-6 Number and names of the countries where the organization operates 9
G4-7 Nature of ownership and legal form 14
G4-8 Markets served 9
G4-9 Scale of the organization 8 8
G4-10 Significant changes regarding size structure or ownership 8
G4-11 Employees covered by National Collective Bargaining Agreement 27
G4-12 Describe the supply chain 16
G4-13Significant changes regarding the organizationrsquos size structure ownership or its supply chain
Reporting process
launched
G4-14 Precautionary principle 22
G4-15 List of external commitments in which the company is involved 22 32 33
G4-16 Associations or interest groups in which the company is involvedwwwflorimit gt
about us gt partnerships
3 Identified material aspects and boundaries
G4-18 Process used to define the report content 6
G4-19 Material aspects 16
G4-20 Boundaries of each material aspect 6
G4-21 Boundaries of each material aspect outside the organizationPartial reporting
(pages 6 16)
G4-22 Explanation of the effect of any restatements of information provided in previous reports 6
G4-23Significant changes from previous reporting periods in the scope boundaries or measurement methods
6
3 Stakeholder engagement
G4-24 List of stakeholders 15
G4-25 Identification of stakeholders 15
G4-26 Stakeholder engagement 6 16
G4-27 Key topics and concerns that have been raised through stakeholder engagement 16
4 Boundary of the Report
G4-28 Reporting period 6
G4-29 Date of publication 2
G4-30 Reporting cycle 6
G4-31 Contacts and addresses for additional information 46
5 GRI Content Index
G4-32 Reporting option chosen 6 7
G4-33 External assurance of ReportThe Report is not
externally assured
2016 Sustainability Report 45
GRI indicators
Description Page Reference to SDGs
6 Governance
G4-34 Governance structure 14
7 Ethics and integrity
G4-56 Values principles standards and norms of behavior 13 16
Economic performance indicators
EC1 Direct economic value generated and distributed 19 25789
EC5 Wages 27 158
EC7 Development and impact of infrastructure investments and services supported 23 24 31 257911
Environmental performance indicators
G4-EN2 Percentage of materials used that are recycled input materials 17 22 23 812
G4-EN3 Energy consumption within the organization 24 781213
G4-EN6 Reduction of energy consumption 17 24 71213
G4-EN7 Reductions in energy requirements of products and servicesPartial reporting
(page 22)71213
G4-EN8 Total water withdrawal by source 17 23 6
G4-EN10 Percentage and total volume of water recycled and reused 17 21 23 612
G4-EN11 Biodiversity 23 615
G4-EN15 Total indirect greenhouse gas emissions by weight 25 3121315
G4-EN16 Total indirect greenhouse gas emissions by weight 25 3121315
G4-EN19 Reduction of greenhouse gas emissions 8 24 1315
G4-EN21 NOx SOx and other significant air emissions 25 31215
G4-EN22 Total water discharge by quality and destination 23 6
G4-EN23 Total weight of waste by type 17 22 3612
G4-EN27 Impact mitigation of environmental impacts of products and services 23 68121315
G4-EN29 Monetary value of significant fines 22 16
G4-EN30 Significant environmental impacts of transporting products and goodsmaterialsPartial reporting
(page 25)111213
Social performance indicators
G4-LA1 Total number and rates of new employee hires and employee turnoverPartial reporting
(pages 17 27)8
G4-LA6 Workplace injury ratesPartial reporting
(page 17)38
G4-LA9 Average hours of training per year per employee 28 48
G4-LA12Composition of governance bodies and breakdown of employees according to gender age group etc
27 58
G4-LA13 Ratio of basic salary and total remuneration of women to men 27 5810
Society
G4-SO1 Operations with local community engagement 12 31 16
G4-SO3 Operations assessed for risks related to corruptionPartial reporting
(page 13)
Product responsibility
G4-PR1 Assessment of health and safety impacts for improvement 23 32
G4-PR3 Type of information about products and services required by the procedures 32 12
G4-PR5 Proceedings relating to customer satisfaction including surveys conducted to measure it 33
G4-PR6 Sale of banned or disputed products 32
G4-PR8 Number of substantiated complaints regarding breaches of privacy 32 16
2016 Sustainability Report46
Your Assessment
You are kindly requested to take a few minutes of your time to give us your assessment and any suggestions to enable us to improve future editions of our Sustainability Report
Click here to send us your feedback
To keep up to date with our business
Spazio CEDIT - interior (Milan)
wwwflorimiten
Florim Ceramiche
Florim4Architects
Florim_ceramiche
Florim Ceramiche spa
Florim Ceramiche
Florim Ceramiche
For any further information please feel free to contact our communications department comunicazioneflorimit
2016 Sustainability Report 47
Premio Lucchese - Florim Gallery (Fiorano Modenese - Modena Italy)
Intrapresaelig Guggenheim Collection - Massimo Bottura in Florim Gallery (Fiorano Modenese - Modena Italy)
Panathlon Christmas Gala - Florim Gallery (Fiorano Modenese - Modena Italy)
2016 Sustainability Report48
White Christmas Party - Florim Gallery (Fiorano Modenese - Modena Italy)
Cersaie - Mario Biondi in Florim Gallery (Fiorano Modenese - Modena Italy)
Dal buio alla luce - Social event at Florim Gallery (Fiorano Modenese - Modena Italy)
2016 Sustainability Report 49
Florim Gallery entrance (Fiorano Modenese - MO)
2016 Sustainability Report52
Florim Ceramiche spaVia Canaletto 24 - 41042 Fiorano Modenese (Modena Italy) - Tel +39 0536 840111 - wwwflorimit
2016 Sustainability Report 27
Workforce Composition
In 2016 the workforce included 27 people with disabilities 6 women and 21 menBearing in mind the job descriptions arising from the specific industrial sector the breakdown between men and women is in line with the industry average Male office workers and executives earn an average of 10 more than women for jobs of equal responsibility Among blue-collar workers the difference is 7 The company had a total of 29 foreign employees 24 at Fiorano and 5 at Mordano
Manager Executive Office worker
2013 2014 2015 2016 2013 2014 2015 2016 2013 2014 2015 2016
Women 2 3 3 3 3 1 1 1 137 142 133 149
Men 18 21 20 18 21 24 25 28 127 132 128 132
Total 20 24 23 21 24 25 26 29 264 274 261 281
Office ancillary Blue-collar worker Total
2013 2014 2015 2016 2013 2014 2015 2016 2013 2014 2015 2016
Women 18 16 25 19 226 219 212 196 385 381 375 368
Men 64 68 79 64 376 358 356 377 607 603 607 619
Total 82 84 104 83 602 577 568 573 992 984 982 987
Social Responsibility
Employees amp Corporate welfare
Its employees are the heart and soul of Florim they provide its character and its DNA Since 2009 when the current major economic crisis began Florim has undertaken a number of income support programs for its workforce Below we summarise some of the ongoing programmes and others run in 2016bull Ending of the Income Support Program for the Mordano plantbull Agreement with Sassuolo Hospital under which Florim employees and their family members enjoy discounts and shorter waiting times for specialist examinations and outpatient diagnostic tests performed on a private basisbull Special agreements with local health facilitiesbull Tax advice at special rates bull Special terms for banking services with financial consultants on-sitebull Discounts on the purchase of Florim products for employees homesbull Free entry to the Peggy Guggenheim Collection in Venice for employees and concessions for family membersbull Free provision of water and mineral salts in the plants during the summerbull Distribution of fuel vouchers to employees for the Christmas holidays
Summer Play Schemes and Cregraveches
In 2016 the summer play schemes for the children of employees at Fiorano and Mordano were continued for the fifth year in succession Seven different centers across the area between Modena and Bologna hosted 85 children (twice the number of the previous year) the company paid the fee for two weeks attendanceWhats more since 2013 the company has negotiated special terms with local cregraveches which now offer a number of places for employeesrsquo children at a reduced fee
2016 Sustainability Report28
Human Resources Management Policies
In July 2015 on renewal of the in-house supplement to the national employment contract the Management introduced a new phase in its relations with the Trade Unions with the aim of continuing and improving the good relationships enjoyed for decadesThe new company contract applied for all employees at the Fiorano headquarters includes more facilitations for part-time working the willingness to allow flexitime where feasible and the commitment to invest in staff training in order to generate full benefits from intellectual capital The company and the trades unions agreed on a plan to improve efficiency fundamental for maintaining the current level of competitiveness by establishing improvement in Production Efficiency and EBITDA as criteria for the payment of the new Performance Bonus The individual Attendance Score is considered together with these parameters The 2016 Performance Bonus in its first year of application was 20 higher than that paid in 2015 In addition in response to employees requests the Company increased the number of approved canteens extending the choice available and also introduced weekly laundering of work clothing for all production workersWith regard to applications for severance pay advances the Company confirms its commitment to continuing the policy implemented so far
Training
Florim believes that in-house training plays a key role in the companyrsquos development and provides a tool for stimulating and fulfilling the potential of its human resourcesMore than 10600 training hours were provided in 2016 to 847 people with an average of more than 11 hours of training per employee New projects included a 6-month on-line English language course which attracted a large number of participants and two highly structured training courses for the sales division and the communication department A retraining program for workers at the Mordano plant was also completed it comprised 4 technical courses attended by 31 people for an average of 13 hours per person Another new entry for 2016 was an innovative procedure for acquiring information about training needs using an on-line questionnaire available to all employees as well as line managers specific recommendations The Master in Florim project is discussed in depth in the specific section
Health and Safety
Florim was the first Italian ceramics manufacturer to receive BS OHSAS 18001 (Occupational Health amp Safety Assessment Series) certification from TUumlV this international standard certifies the implementation of an internal management system oriented towards occupational health and safetyThis major award confirms the companys constant commitment to the well-being of its employees Every year in addition to engineering inspections and machinery maintenance a number of hours of safety training are organised to raise awareness among workers and supervisors Specifically in 2016 2849 hours were dedicated to safety training and a significant reduction in injury rates was recordedMoreover BLSD refresher courses are continuously held for the team of Florim employees trained in first-aid operations and the use of the defibrillators available on site
2012 2013 2014 2015 2016
Number of workplace injuries 63 62 74 56 43
2016 Sustainability Report 29
The Master in Florim organized for the fourth time in 2016 is a vocational training project which aims to bridge the gap between education (high school or university) and the world of work The program which is one of the companys Social Responsibility projects sets out to help young people to get to know the company through a well structured work experience plan It offers a distinctively northern European approach with a method which alternates classroom teaching with internships in the various areas of the company Participants new university or high school graduates specialising in various subjects all below 30 years of age are therefore able to gain hands-on experience of all Florim departments from RampD to the production process and product distribution for an all-inclusive vision The MASTER courses ambitious aim is to match the individual participants talents with the companys real needs At the end of each edition the company hires all or some of the selected candidates enabling it to acquire new skills new experiences and new energy
Master 40 in figures
20 young people taking part6 months of training13 external lecturers264 hours of classroom teaching392 hours of practical training4 company visits (Ferrari Tetrapak Cremonini and Ducati)50 days of work experience on rotation involving 15 departments1 month of project work
The projects prestige is enhanced by its economic context since Florim pays the young participants for the entire period and its aim is to deal with the thorny problem of youth unemployment The Master has won approval from various faculties at major Italian universities The project was also a winner in the Emilia-Romagna Regions 2016 awards for Corporate Social Responsibility projects run in the local community A prize in the ldquoBusiness and Educationrdquo category was assigned to the Master project which aims to give young people the skills required for sustainable development
Master in Florim
2016 Sustainability Report
Watch the videoof the 4th edition
2016 Sustainability Report30
Local Community amp Culture
This chapter describes a number of programs Florim runs for the local community in the area where it originated and where it has been working for more than 50 years
Politecnico di Milano
Since the 20052006 academic year Florim has been a partner sponsor of a large number of Postgraduate Courses run by POLIDesign the Politecnico di Milano consortium which organizes its Master Degree coursesAlso in association with POLIDesign since 2012 Florims Milan showroom has hosted several design events for architects and designers of every nationality
Aziende modenesi per la RSI
ldquoAziende Modenesi per la RSIrdquo an independent open inclusive association of companies in the Modena area which believe in the principles and values of Corporate Social Responsibility was established by public deed on 30 September 2014 with Florim as a founding member Florim hosts the associations member companies every year to discuss the various topics proposed
Premio Lucchese
The Premio Lucchese presented for the twenty-ninth time in 2016 was established in memory of Giovanni Lucchese and consists of scholarships awarded to students at the ldquoAlessandro Voltardquo Technical High School in Sassuolo who graduate with full marks The award ceremony held every year at the Florim Gallery in association with Societagrave Ceramica Italiana of Bologna includes a talk given by a leading personality on a topic of current interest to an audience of eager young listeners
Intrapresaelig Collezione Guggenheim
As befits a company that combines the values of its local community and historic and artistic heritage with a flair for research and innovation Florim recently launched a partnership with the Peggy Guggenheim Collection Since its foundation Florim has always had a unique ability to incorporate the true cultural significance of its industry in its business model and by this project once again confirms its commitment to promoting art by supporting a collection of extraordinary beauty
Fondazione Ing Giovanni Lucchese
More than thirty years after the untimely death of Giovanni Lucchese ndash founder of what was then Floor Gres currently Florim ndash in 2013 his family established a Foundation in his name which since then has funded organizations and associations that support families in need in the ceramics district The Foundation also supports a variety of projects such as the summer play scheme for employees children the Premio Lucchese and the Florim HealthampTraining Center described in more detail below
The main projects undertaken in 2016 include the funding of the purchase of 10 defibrillators for the Municipality of Fiorano and the contributions made to the purchase of paediatric ambulances for the local area and to support the Parish charitable organizations and social services in the district
Watch the Premio Lucchese video
The project run jointly by Florim and Sassuolo Hospital adopts a completely new model combining industrial culture and healthcare in an original way to benefit the local people and community thanks to the coming-together of a ceramic coverings manufacturer and the public-private joint venture Ospedale di Sassuolo Spa Florim HealthampTraining is the synthesis of this idea an experimental center which promotes local training for healthcare and other staff health education and information advanced medical simulation and research
The Center
On the main Florim site and opened on 16 April 2014 the Center is 550 square meters in area and contains a modular lecture theatre able to seat over 100 people and a number of classrooms for seminars and lessons At its heart is a state-of-the-art control room crammed with technology that operates dummies capable of reproducing human functions of all kinds Advanced simulation is a major aid to maintaining the skills of emergency healthcare workers with a particular focus on pediatric and neonatal resuscitation
Health meetings
Designed as a space for community use the Center also aims to become a place where all sections of the population - workers schoolchildren parents teachers volunteers and even just members of the public - can learn about preventive health care and acquire first aid skills After the distribution to Florim employees of a questionnaire surveying their training needs and preferences a Center Scientific Committee of Sassuolo Hospital medical personnel was appointed and drew up a plan of bi-monthly ldquoHealth meetingsrdquo All meetings are led by doctors with expertise in the various topics who answer the many questions from the audience at the end of their talks Between its opening and the end of December 2016 the Center hosted 13 meetings on a variety of topics attended by about 1000 people including employees their family members and the community at large
Healthcare discounts for Florim employees
The project also includes a major welfare program for all Florim employees and their family members entitling them to discounts and shorter waiting times for specialist examinations and outpatient diagnostic tests performed on a private basis
American Heart Association
The world-famous American Heart Association (AHA) is the oldest and most respected American voluntary organization dedicated to the fight against cardiovascular diseases and strokes In 2015 the AHA via the Simaid International Training Center named the Florim HealthampTraining Center as an Authorized Training Site for basic and advanced cardiopulmonary resuscitation
Florim HealthampTraining Center
2016 Sustainability Report
Watch the Health amp Training Center video
2016 Sustainability Report32
Product Responsibility
Here we summarize the concept of Made in Florim denoting a product that encapsulates the companys core values passion innovation a constant commitment to improvement and corporate social responsibility
Florim product certifications
CE Marking guarantees the user that the materials purchased meet the requirements of the relevant regulations and that the characteristics concerned are virtually unchanged for all production lots It is a declaration of conformity which protects the consumerrsquos safety The presence of the CE Marking on packaging guarantees that Florim products comply with the relevant regulatory requirements
Ecolabel (EC Regulation 662010) is a certification granted to products which comply with ecological and performance criteria set at a European level concerning raw material extraction supplier selection manufacturing processes packaging distribution use and disposal The certified Florim collections are Architech Ecotech Reverse Walks 10 by Floor Gres and Pietra del Nord under the Rex brand
Several ceramic tile collections bearing the Florim brands have earned certification from Bureau Veritas for their pre-consumer recycled material content These articles are therefore fully eco-compatible and can meet the environmental sustainability requirements imposed by many international certifications
Florim is a member of the US Green Building Council (USGBC) the most important association which promotes the reduction of buildings negative impact on the environment To allow the effective monitoring a projects level of sustainability the USGBC has developed a certification procedure for the development of sustainable buildings which assess and certifies the sustainability of a building in its entirety Florim materials are able to help to gain LEED points in a number of areas (data available on the Florim brand websites)
Florim has achieved the prestigious Greenguard certification for all its products Issued by the American body UL Environment this certification aims to reduce indoor pollution caused by interior design systems and materials UL Environment thus aims to protect health by improving air quality and reducing peoples exposure to chemicals and other pollutants Florim has also achieved Greenguard Gold Certification which imposes even stricter limits to confirm that a given product is suitable for use even in locations such as schools and health care facilities
The EPD or Environmental Product Declaration is a document which defines the environmental impacts arising from production In 2016 Florim participated in the study - certified by the German organization IBU - performed on the ceramics industry average data which aims to raise international awareness of the excellence of the environmental standards achieved
Beyond the standardsMade in Florim products are a guarantee of safety highly innovative content and eco-friendliness The people who produce them work in a safe place and in ethically sustainable conditions Due to their nature all Florim products are guaranteed free from pollutant emissions do not accumulate electrostatic charges are frostproof and completely inert and are undamaged by contact with flames The Groups Internet sites and collection catalogues contain the technical data sheets which detail the product information (slip-resistance breaking strain abrasion resistance etc) for every collection as well as its recycled material content with the relative certificates
During the period under consideration no banned products were placed on the market and the company was not found guilty of any breaches of the law with regard to data protection or its marketing and communication activities
EU Ecolabel nr IT2104
2016 Sustainability Report 33
Quality SystemThe current ISO 9001 standards define quality as the ability to satisfy explicit or implicit needs via a product or a service A Quality System implies constant improvement of company processes in order to realise products that always satisfy the customerrsquos needs Further to the 2016 audit Florim obtained the renewal of its UNI EN ISO 90012015 certification for the design manufacture and sale of all categories of ceramic tile
Objective Indicator 2012 2013 2014 2015 2016
Continual improvement of control of the production process
Percentage of First Grade Product ()
924 943 942 952 956
Quality rate () 883 905 903 905 909
Scrap rate () 44 41 42 42 49
Productivity (sq mhour) 186 188 186 190 200
Improvements in sales performance and customer satisfaction
Innovation rate () 330 296 367 455 364
Coverage () 795 714 814 813 816
Total portfolio shippable within one month ()
911 837 888 893 897
Optimization of range and stocks
Obsolete stock () 172 126 165 120 69
Stock turnover rate () 13 15 16 15 16
Gradual elimination of disputes complaints and claims concerning service
Square meters affected by complaints ()
17 12 08 12 09
Complaints by number of order items ()
10 11 11 10 10
Gradual improvement in staff skill levels
Employee turnover () 15 23 04 04 12
KeyPercentage of first grade product percentage ratio between the square meters of first grade products and the total square meters transferred to stockQuality rate percentage ratio between the square meters of first grade product transferred to stock and the square meters leaving the pressesScrap rate percentage difference between square meters of material leaving the presses and square meters of product actually transferred to stockProductivity ratio between the square meters transferred to stock and the total hours worked in the plantInnovation rate ratio between square meters sold belonging to series designed in the last three years and total square meters sold Florim uses this indicator to assess the effectiveness of its design process in terms of salesCoverage percentage ratio between square meters available for immediate shipment and the square meters on orderTotal portfolio of orders shippable within one month percentage ratio between the square meters which can be shipped in 30 days and the square meters on orderObsolete stock percentage ratio between the square meters of substandard discontinued produce and the total square meters in stock Stock turnover rate ratio between the square meters sold and the square meters in stockSquare meters affected by complaints percentage ratio between the square meters affected by complaints and the square meters soldComplaints by number of order items percentage ratio between the number of complaints and the number of items orderedEmployee turnover percentage ratio between the number of employees leaving the company and being replaced and the workforce at the start of the year
2016 Sustainability Report34
Casamood - Neutra 60 Collection
2016 Sustainability Report 35
OUR COMMITMENTS
The promises we keptIn our last Sustainability Report we committed to achieving a large number of objectives the following are the outcomes we attained
Relaunch of the ldquoCEDIT ndash Ceramiche drsquoItaliardquo brand OBJECTIVE ACHIEVED
Launch of the FLORIM stone brand OBJECTIVE ACHIEVED
Installation of a new latest-generation kiln at the Mordano plant OBJECTIVE ACHIEVED
Transfer of the Moscow showroom to new premises SCHEDULED FOR 2017
Creation of a new gatehouse at the Mordano plantOBJECTIVE POSTPONED TO GIVE PRIORITY TO THE CONSTRUCTION OF THE NEW FACTORY
Introduction of ERP system at Florim USA OBJECTIVE ACHIEVED
Installation of a new spray dryer and raw material handling system at Florim USA
OBJECTIVE ACHIEVED
Economic Responsibility
Renewal of certification of the Florim environmental and energy management system
OBJECTIVE ACHIEVED
Award of new certifications for collections manufactured with a high recycled material content
OBJECTIVE ACHIEVED
Continuation of work to reduce environmental impacts at Mordano especially with the reduction of energy costs
OBJECTIVE ACHIEVED
Continuation of the work to remove asbestos cement roofing materials at the Mordano plant
OBJECTIVE ACHIEVED
Expansion of the system which conveys rainwater to the treatment plant OBJECTIVE ACHIEVED
Reduction of the noise emissions of the air filtering systems OBJECTIVE ACHIEVED
Increase of recycling targets through constant awareness-raising amongst all staff and optimisation of recycling facilities
OBJECTIVE ACHIEVED
Continuation of replacement of the diesel forklift trucks for use on outdoor yards with electric vehicles
OBJECTIVE ACHIEVED
Environmental Responsibility
Running of fourth edition of Master Florim course with new procedures OBJECTIVE ACHIEVED
Creation of an internal refreshment area for the Fiorano office staff OBJECTIVE ACHIEVED
Improvement of corporate welfare through the activation of new free services and discounts tailored to employees needs
OBJECTIVE ACHIEVED
Continuation of the health meetings for the local community in association with Ospedale di Sassuolo Spa
OBJECTIVE ACHIEVED
Organization of new community events at Florim Gallery OBJECTIVE ACHIEVED
Organization of Florim Family Day 2016 A PARTY WAS ORGANISED FOR EMPLOYEES
Social Responsibility
2016 Sustainability Report36
The targets we set for ourselvesWe aim to achieve the following objectives in 2017
Economic Responsibility
Construction of a new factory at Mordano to produce large slabs
Launch of the project to unite the Florim spa sales organizations
Total restyling of the corporate and brand Internet sites
Launch of the HUB project - Intranet CRM Marketing Automation
New plants at Florim USA a press two sorting lines a polishing and rectifying line
New working spaces and cloakrooms for technical staff at the American plant
Environmental Responsibility
Purchase of a new cogenerator for the Mordano plant
Introduction of a new rainwater collection system at Fiorano
Land reclamation project involving covering of the Rio Spezzano stream at Fiorano
Implementation of new software for continual monitoring of energy impacts at Fiorano
Modernisation of the compressor room to improve energy impacts at Mordano
Increase of recycling targets through constant awareness-raising amongst all staff and optimisation of recycling facilities
Continuation of replacement of the diesel forklift trucks for use on outdoor yards with electric vehicles
Social Responsibility
Improvement of corporate welfare through the activation of new free services and discounts tailored to employees needs
Continuation of the health meetings for the local community in association with Ospedale di Sassuolo Spa
Organization of new community events at Florim Gallery
Organization of a new event for Florim spa employees
New offices for hospitality and events staff at Fiorano
2016 Sustainability Report 37
FLORIM USA
Profile and Economic ResponsibilityFlorim USA with registered office at Clarksville - Tennessee - and its subsidiary Florim Solution Inc have been part of the Florim Group since 2000 The Florim USA manufacturing plant one of the largest most technologically advanced in the United States produces porcelain stoneware tiles for the residential market and undertakes commercial projects in North America During the last few years Florim USA has implemented a growth and process optimization strategy which has generated significant technological progress with more innovations planned for the future The strategy adopted will put Florim USA at the worldwide state of the art in porcelain stoneware tile manufacture
In 2016 of the 18 million USD invested 147 was allocated for installation of a latest-generation raw material handling system and a large spray-dryer with an innovative sorting system Improvements were made to other parts of the process to increase their efficiency leading to a further reduction in emissions and scrap rates Additional investments are planned during 2017 to continue this dual trend of rising production with mitigation of environmental impact
The new Florim Flagship Store in New York (152 Madison Avenue 32nd Street)
2016 Sustainability Report38
Environmental ResponsibilityFlorim USA implements the same environmental policy as Florim and is committed to achieving the following objectives
bull reduction of the energy used in the production processbull improvement of the waste management process with a focus on recovery and reusebull introduction of new more eco-efficient technologiesbull adoption of integrated management systems
Florim USA has been pursuing a strategy of careful management of its operations and environmental impact for a number of years Here we summarise the main actions taken and the results achieved in 2016
bull installation of a latest-generation spray-dryer in 2016bull installation of an innovative raw material handling system in 2016bull 100 recycling of wastewater within the processbull optimisation of the management of water bottles with elimination of about 34200 of them per annumbull reuse of almost all production scrap (+99)bull 157000 kg of cardboard recycled in 2016bull award of two different types of product certificationbull 9300 kg of plastic recycledbull recycling of 17 complete trucks of pallets
Environmental Projects and Awards
Florim USA has received Clarksville Montgomery County Green Certification (CMCGC) CMCGC is a program designed to help companies learn and implement best practices in the area of environmental stewardship to sustain the local communityrsquos resources through a series of free workshops taught by local environmental specialists Since 2014 Florim has allocated some of its Environment Managers time for the running of these workshopsFlorim USA earned this green company certification thanks to a large number of projects first and foremost the one which eliminated the use of disposable water bottles replaced with individual reusable bottles provided by the company and a series of fill-up stations About 34200 bottles are removed from the waste cycle every year
During the latest phase of its plant optimization Florim USA has implemented a thorough construction material reuse policy In the various stages of demolition of the old plants including the old storage silos the concrete debris was recovered and reused in other construction worksThis project alone generated 11500 tons of recycled aggregate as well as several hundred tonnes of metal sold to a recycling firm
Environmental management system and eco-compatible products
Florim USArsquos products help builders and designers to meet the requirements for sustainable buildings as defined by the United States Green Building Council (USGBC) through the LEED Green Building Rating System This protocol evaluates and certifies the environmental sustainability of a building as a unit from its design to its day to day management To gain LEED credits many of the Florim USA product lines contain a significant percentage of recycled material (40 or more)This feature contributes to an increase in the LEED score in the projects where these products are installed In 2014 Florim USA together with a large number of other US tile manufacturers and the Tile Council of North America drew up a type III environmental product declaration (EPD) certified under the ISO 14025 standard This ceramic tile life-cycle analysis enables Florim USA products to gain LEED points under the new LEED v4 protocol
2016 Sustainability Report 39
Water use (gallonsper million square feetof finished tiles)
208137 216246 204962 195280 194268
Energy use
2012 2013 2014 2015 2016
Cubic feet of natural gas per million square feet of finished tiles 9343383 9149721 8331170 8390503 8380000
kWh per million square feet of finished tiles 510972 491171 450594 465976 490300
Emissions
Particulate material lt 21024 tonnes per annum
SO2 (sulphur dioxide) lt 1674 tonnes per annum
VOC (volatile organic compounds) lt 1245 tonnes per annum
NOx (oxides of nitrogen) lt 1501 tonnes per annum
Environmental performance indicators ndash summary
The following are the main environmental indicators related to the impact and performance of Florim USA during 2016
Pre-consumer recycled material
Its internal material recycling processes enable the company to minimise its environmental impact since most of the material which would otherwise be sent to landfills or other waste treatment centers is reusedbull Wastewater is entirely recycled within the production process without any discharge into the municipal drainsbull The material in the collection bags from the tile body and glaze preparation areas the press and glaze application is entirely recycled within the processbull All scrap fired tiles are entirely recycled within the processbull 157000 kg of cardboard was sold to an external recycled material dealerbull 17 trucks of unusable wooden pallets were sold to a pallet regeneration companybull About 9300 kg of waste shrink-wrap plastic film was recovered and recycled
Post-consumer recycled material
About 82000 kg of glass was removed from the flow of waste destined for the local landfill and recycled within the process Florim USA has signed an agreement with the local landfill for consignment of all the glass it handles which is collected and set aside for recycling
Water use disposal and reuse
The water used during the production process is recycled continually therefore no water is discharged into the municipal drains
The 2016 emissions figures are in line with those for previous years well below the standards laid down
Water use 2012 2013 2014 2015 2016
Water use (gallons per million square feet of finished tiles) 216246 204962 195280 194268 203928
2016 Sustainability Report40
Social Responsibility
Employees
The Florim USA workforce comprises 348 staff employed at the production site the Clarksville and Nashville outlet stores and the Florim Solution offices Of the 348 employees 273 are blue-collar workers and 75 office staff 5 employees are Italians on secondment to the United States Florim USA offers a number of benefits to full time employeesbull health and dental care insurancebull Vision insurancebull life insurance for employees and optionally for family membersbull temporary and permanent disability supportbull employee pension plan
2012 2013 2014 2015 2016
Workplace injuries 50 41 22 29 27
The Employee Assistance Program (EAP) also offers support to employees and their families in the event of psychological difficulty or other problems that can have a negative impact on their quality of life Florim USA supports all the costs of the program
Equal opportunities
Florim USA provides equal opportunities in all employment practices to all qualified employees and applicants regardless of race colour religion gender national origin age disability or membership of the armed forces or any other category protected by federal state or local laws
Health and safety
FLORIM USA is committed to ensuring a safe healthy workplace for all employees It therefore replaces old and obsolete equipment with new technologically more modern machinery and updates safety plans as new information gradually becomes availableAs well as an internal supervisor Florim USA has also appointed a health and safety committee which constantly monitors the plans effectiveness and makes any changes requiredThere are currently 20 plant employees who hold CPRfirst aid qualifications They occupy a variety of positions and work different shifts within the plant and have volunteered to attend training courses sponsored by the company for the award of these qualifications
Training
In 2016 every Florim USA employee attended an average of about 25 hours of training The training provided covered the operating procedures for the new equipment the main safety plans and the procedures for use of existing equipment for new employeesAll new staff undergo specific training for their department focusing on the safety-related aspects of the department concerned as well as more generalized safety training
Some of these themes includebull safe correct use of forklift trucksbull training on work in confined spacesbull shutdownwarning procedures and safe electrical practicesbull safe lifting procedures
2016 Sustainability Report 41
Florim USA ndash (Clarksville Tennessee)
For employees wishing to continue their education Florim USA offers assistance through the Educational Assistance Program It provides aid with the cost of education and textbooks and is available for any employee wishing to study for a technical qualification a diploma or a degreeThe plant staff training and education plan also includes various training schemes at Florim Italy where employees are instructed in the use of new equipment before it is installed at the American plantThroughout 2016 Florim USA will continue to provide a free e-learning course on its website for architects engineers and contractors (AEC) to improve their knowledge of sustainable porcelain stoneware tiles
Employee welfare activities
Florim USA employee picnic - In 2016 the company once again held its annual picnic for employees offering them a wide variety of foods games activities and live shows in an event which provided an unforgettable days enjoyment Within the event participants received prizes in the form of vouchers and gifts
Employee anniversary dinner - 2016 again saw the usual dinner to honour Florim USA employees with 5 10 15 20 or more years of service A special evening event was held in the presence of the Chairman and the other managers to celebrate the loyalty and hard work these employees have contributed during their careers with the firm
2016 Sustainability Report42
Local Community
During 2016 Florim USA continued to provide its support to a number of projects in its local areaSome of the main projects include
Scholarships - As part of its work to support the local community Florim has an established scheme which awards scholarships to deserving students at the Austin Peay State University in memory of Florim Group founder Giovanni Lucchese In December 2016 a delegation of Florim representatives attended a scholarship presentation lunch at the Austin Peay State University hosted by the President of the University
Montgomery County Green Certification Program - Florim USA staff actively participate in the Montgomery County Green Certification Program which aims to help companies learn and implement best practices with regard to safeguarding the environment and environmental resources
Donations - In 2016 the company again made a large number of donationsbull book collection for the Austin Peay State University Employees made a generous donation of used books in good condition for children and young people of the APSU in the hope of further promoting the education of future generationsbull to Community Cares the national organization that promotes the acceptance and social inclusion of individuals with Downs Syndromebull to the Aspire Clarksville Foundation a 501(c)(3) charitable foundation whose mission is to continuously improve the economy and the livability (quality of life) of the community by attracting significant capital investment and expansion by businesses and corporations thereby creating better opportunities and higher paying jobs for residentsbull to the Alzheimerrsquos Association a non-profit voluntary organization dedicated to the care and support of Alzheimers Disease sufferers and research into the condition Its aim is to eliminate the disease through the advancement of research to provide and enhance care and support for all affected and to reduce the risk of dementia through the promotion of brain health
Other activities - Every year Florim USA participates in the United Way Drive initiative to support local non-profit organizations which provide economic assistance and psychological support to persons in difficulty
Florim USA provides regular support to the Salvation Army by collecting canned foods for persons in needIn 2016 the company again organised a canned food collection for Manna Cafeacute in Clarksville TN Manna Cafeacute is a local non-profit organization based in Middle Tennessee with the primary mission of meeting peoples fundamental need for food before encouraging them to permanently change their lives for the better More than 15 of the population in Montgomery County are affected by food insecurity (about 28000 people) The percentage of children affected is about 215 a third of whom are excluded by income from federal programs such as free school mealsFinally donations were made tobull American Lung Association the leading organization working to save lives by improving lung health and preventing lung disease through research and educationbull Cheer for a Cure an organization that gives money directly to afflicting families who have a loved one suffering from cancer and need assistance to alleviate the added financial stressbull Habitat for Humanity Since 1992 Habitat for Humanity in Montgomery County Tennessee has worked with 93 low-income families with more than 210 children to revitalise various parts of Clarksville-Montgomery County by building new homes
2016 Sustainability Report 43
Quality SystemFlorim USA works under a Quality System certified to UNI EN ISO 9001 standards The following are some of the figures in brief
Objective Indicator 2012 2013 2014 2015 2016
Optimisation of control of the production process
Percentage of First Grade Product ()
932 917 940 949 9510
Quality rate () 883 857 893 906 909
Scrap rate () 56 65 48 45 45
KeyPercentage of first grade product ratio between square feet of first grade material and total square feet transferred to stockQuality rate ratio between square feet of first grade material transferred to stock and square feet pressedScrap rate ratio between square feet pressed and square feet of product actually transferred to stock
Other ActivitiesFlorim USA and trade shows
In 2016 Florim USA participated at a number of shows and events including Coverings the AIA Tennessee Convention Hardscape North America Total Solutions Plus Neocon International Pool - Spa and Patio Expo These events targeted at the various categories of industry professionals such as dealers and designers gave Florim USA the opportunity to present its new range of indoor and outdoor products
Design Center
In December 2015 Florim USA opened a design center showroom in Nashville (TN) in a strategic location close to the airport and the city center With a spacious area to host individual CEU presentations and workshops this design center has the potential to be a major resource for local architects In 2016 it was also awarded the ldquoOutstanding Boothrdquo booth prize at the 33rd edition of the Annual Home Decorating and Remodeling Show The location is the ideal place for sharing ideas finding inspiration and putting professionals and architects in touch with each other
Florim Nashville Design Center
2016 Sustainability Report44
GRI International Sustainability Indicators SDGsThe information below illustrates the correspondence between the Florim (Italian companies) 2016 Sustainability Report the GRI-G4 guidelines and the icons of the Sustainable Development Goals (SDGs) definitively adopted by the United NationsA description of the SDGs is available at wwwglobalcompactnetworkorg
GRI indicators
Description Page Reference to SDGs
1 Strategy and Analysis
G4-1 Statement from the most senior decision-maker of the organization 5
2 Organization profile
G4-3 Name of the organization 2
G4-4 Primary brands products andor services 9
G4-5 Location of the organizations headquarters 9
G4-6 Number and names of the countries where the organization operates 9
G4-7 Nature of ownership and legal form 14
G4-8 Markets served 9
G4-9 Scale of the organization 8 8
G4-10 Significant changes regarding size structure or ownership 8
G4-11 Employees covered by National Collective Bargaining Agreement 27
G4-12 Describe the supply chain 16
G4-13Significant changes regarding the organizationrsquos size structure ownership or its supply chain
Reporting process
launched
G4-14 Precautionary principle 22
G4-15 List of external commitments in which the company is involved 22 32 33
G4-16 Associations or interest groups in which the company is involvedwwwflorimit gt
about us gt partnerships
3 Identified material aspects and boundaries
G4-18 Process used to define the report content 6
G4-19 Material aspects 16
G4-20 Boundaries of each material aspect 6
G4-21 Boundaries of each material aspect outside the organizationPartial reporting
(pages 6 16)
G4-22 Explanation of the effect of any restatements of information provided in previous reports 6
G4-23Significant changes from previous reporting periods in the scope boundaries or measurement methods
6
3 Stakeholder engagement
G4-24 List of stakeholders 15
G4-25 Identification of stakeholders 15
G4-26 Stakeholder engagement 6 16
G4-27 Key topics and concerns that have been raised through stakeholder engagement 16
4 Boundary of the Report
G4-28 Reporting period 6
G4-29 Date of publication 2
G4-30 Reporting cycle 6
G4-31 Contacts and addresses for additional information 46
5 GRI Content Index
G4-32 Reporting option chosen 6 7
G4-33 External assurance of ReportThe Report is not
externally assured
2016 Sustainability Report 45
GRI indicators
Description Page Reference to SDGs
6 Governance
G4-34 Governance structure 14
7 Ethics and integrity
G4-56 Values principles standards and norms of behavior 13 16
Economic performance indicators
EC1 Direct economic value generated and distributed 19 25789
EC5 Wages 27 158
EC7 Development and impact of infrastructure investments and services supported 23 24 31 257911
Environmental performance indicators
G4-EN2 Percentage of materials used that are recycled input materials 17 22 23 812
G4-EN3 Energy consumption within the organization 24 781213
G4-EN6 Reduction of energy consumption 17 24 71213
G4-EN7 Reductions in energy requirements of products and servicesPartial reporting
(page 22)71213
G4-EN8 Total water withdrawal by source 17 23 6
G4-EN10 Percentage and total volume of water recycled and reused 17 21 23 612
G4-EN11 Biodiversity 23 615
G4-EN15 Total indirect greenhouse gas emissions by weight 25 3121315
G4-EN16 Total indirect greenhouse gas emissions by weight 25 3121315
G4-EN19 Reduction of greenhouse gas emissions 8 24 1315
G4-EN21 NOx SOx and other significant air emissions 25 31215
G4-EN22 Total water discharge by quality and destination 23 6
G4-EN23 Total weight of waste by type 17 22 3612
G4-EN27 Impact mitigation of environmental impacts of products and services 23 68121315
G4-EN29 Monetary value of significant fines 22 16
G4-EN30 Significant environmental impacts of transporting products and goodsmaterialsPartial reporting
(page 25)111213
Social performance indicators
G4-LA1 Total number and rates of new employee hires and employee turnoverPartial reporting
(pages 17 27)8
G4-LA6 Workplace injury ratesPartial reporting
(page 17)38
G4-LA9 Average hours of training per year per employee 28 48
G4-LA12Composition of governance bodies and breakdown of employees according to gender age group etc
27 58
G4-LA13 Ratio of basic salary and total remuneration of women to men 27 5810
Society
G4-SO1 Operations with local community engagement 12 31 16
G4-SO3 Operations assessed for risks related to corruptionPartial reporting
(page 13)
Product responsibility
G4-PR1 Assessment of health and safety impacts for improvement 23 32
G4-PR3 Type of information about products and services required by the procedures 32 12
G4-PR5 Proceedings relating to customer satisfaction including surveys conducted to measure it 33
G4-PR6 Sale of banned or disputed products 32
G4-PR8 Number of substantiated complaints regarding breaches of privacy 32 16
2016 Sustainability Report46
Your Assessment
You are kindly requested to take a few minutes of your time to give us your assessment and any suggestions to enable us to improve future editions of our Sustainability Report
Click here to send us your feedback
To keep up to date with our business
Spazio CEDIT - interior (Milan)
wwwflorimiten
Florim Ceramiche
Florim4Architects
Florim_ceramiche
Florim Ceramiche spa
Florim Ceramiche
Florim Ceramiche
For any further information please feel free to contact our communications department comunicazioneflorimit
2016 Sustainability Report 47
Premio Lucchese - Florim Gallery (Fiorano Modenese - Modena Italy)
Intrapresaelig Guggenheim Collection - Massimo Bottura in Florim Gallery (Fiorano Modenese - Modena Italy)
Panathlon Christmas Gala - Florim Gallery (Fiorano Modenese - Modena Italy)
2016 Sustainability Report48
White Christmas Party - Florim Gallery (Fiorano Modenese - Modena Italy)
Cersaie - Mario Biondi in Florim Gallery (Fiorano Modenese - Modena Italy)
Dal buio alla luce - Social event at Florim Gallery (Fiorano Modenese - Modena Italy)
2016 Sustainability Report 49
Florim Gallery entrance (Fiorano Modenese - MO)
2016 Sustainability Report52
Florim Ceramiche spaVia Canaletto 24 - 41042 Fiorano Modenese (Modena Italy) - Tel +39 0536 840111 - wwwflorimit
2016 Sustainability Report28
Human Resources Management Policies
In July 2015 on renewal of the in-house supplement to the national employment contract the Management introduced a new phase in its relations with the Trade Unions with the aim of continuing and improving the good relationships enjoyed for decadesThe new company contract applied for all employees at the Fiorano headquarters includes more facilitations for part-time working the willingness to allow flexitime where feasible and the commitment to invest in staff training in order to generate full benefits from intellectual capital The company and the trades unions agreed on a plan to improve efficiency fundamental for maintaining the current level of competitiveness by establishing improvement in Production Efficiency and EBITDA as criteria for the payment of the new Performance Bonus The individual Attendance Score is considered together with these parameters The 2016 Performance Bonus in its first year of application was 20 higher than that paid in 2015 In addition in response to employees requests the Company increased the number of approved canteens extending the choice available and also introduced weekly laundering of work clothing for all production workersWith regard to applications for severance pay advances the Company confirms its commitment to continuing the policy implemented so far
Training
Florim believes that in-house training plays a key role in the companyrsquos development and provides a tool for stimulating and fulfilling the potential of its human resourcesMore than 10600 training hours were provided in 2016 to 847 people with an average of more than 11 hours of training per employee New projects included a 6-month on-line English language course which attracted a large number of participants and two highly structured training courses for the sales division and the communication department A retraining program for workers at the Mordano plant was also completed it comprised 4 technical courses attended by 31 people for an average of 13 hours per person Another new entry for 2016 was an innovative procedure for acquiring information about training needs using an on-line questionnaire available to all employees as well as line managers specific recommendations The Master in Florim project is discussed in depth in the specific section
Health and Safety
Florim was the first Italian ceramics manufacturer to receive BS OHSAS 18001 (Occupational Health amp Safety Assessment Series) certification from TUumlV this international standard certifies the implementation of an internal management system oriented towards occupational health and safetyThis major award confirms the companys constant commitment to the well-being of its employees Every year in addition to engineering inspections and machinery maintenance a number of hours of safety training are organised to raise awareness among workers and supervisors Specifically in 2016 2849 hours were dedicated to safety training and a significant reduction in injury rates was recordedMoreover BLSD refresher courses are continuously held for the team of Florim employees trained in first-aid operations and the use of the defibrillators available on site
2012 2013 2014 2015 2016
Number of workplace injuries 63 62 74 56 43
2016 Sustainability Report 29
The Master in Florim organized for the fourth time in 2016 is a vocational training project which aims to bridge the gap between education (high school or university) and the world of work The program which is one of the companys Social Responsibility projects sets out to help young people to get to know the company through a well structured work experience plan It offers a distinctively northern European approach with a method which alternates classroom teaching with internships in the various areas of the company Participants new university or high school graduates specialising in various subjects all below 30 years of age are therefore able to gain hands-on experience of all Florim departments from RampD to the production process and product distribution for an all-inclusive vision The MASTER courses ambitious aim is to match the individual participants talents with the companys real needs At the end of each edition the company hires all or some of the selected candidates enabling it to acquire new skills new experiences and new energy
Master 40 in figures
20 young people taking part6 months of training13 external lecturers264 hours of classroom teaching392 hours of practical training4 company visits (Ferrari Tetrapak Cremonini and Ducati)50 days of work experience on rotation involving 15 departments1 month of project work
The projects prestige is enhanced by its economic context since Florim pays the young participants for the entire period and its aim is to deal with the thorny problem of youth unemployment The Master has won approval from various faculties at major Italian universities The project was also a winner in the Emilia-Romagna Regions 2016 awards for Corporate Social Responsibility projects run in the local community A prize in the ldquoBusiness and Educationrdquo category was assigned to the Master project which aims to give young people the skills required for sustainable development
Master in Florim
2016 Sustainability Report
Watch the videoof the 4th edition
2016 Sustainability Report30
Local Community amp Culture
This chapter describes a number of programs Florim runs for the local community in the area where it originated and where it has been working for more than 50 years
Politecnico di Milano
Since the 20052006 academic year Florim has been a partner sponsor of a large number of Postgraduate Courses run by POLIDesign the Politecnico di Milano consortium which organizes its Master Degree coursesAlso in association with POLIDesign since 2012 Florims Milan showroom has hosted several design events for architects and designers of every nationality
Aziende modenesi per la RSI
ldquoAziende Modenesi per la RSIrdquo an independent open inclusive association of companies in the Modena area which believe in the principles and values of Corporate Social Responsibility was established by public deed on 30 September 2014 with Florim as a founding member Florim hosts the associations member companies every year to discuss the various topics proposed
Premio Lucchese
The Premio Lucchese presented for the twenty-ninth time in 2016 was established in memory of Giovanni Lucchese and consists of scholarships awarded to students at the ldquoAlessandro Voltardquo Technical High School in Sassuolo who graduate with full marks The award ceremony held every year at the Florim Gallery in association with Societagrave Ceramica Italiana of Bologna includes a talk given by a leading personality on a topic of current interest to an audience of eager young listeners
Intrapresaelig Collezione Guggenheim
As befits a company that combines the values of its local community and historic and artistic heritage with a flair for research and innovation Florim recently launched a partnership with the Peggy Guggenheim Collection Since its foundation Florim has always had a unique ability to incorporate the true cultural significance of its industry in its business model and by this project once again confirms its commitment to promoting art by supporting a collection of extraordinary beauty
Fondazione Ing Giovanni Lucchese
More than thirty years after the untimely death of Giovanni Lucchese ndash founder of what was then Floor Gres currently Florim ndash in 2013 his family established a Foundation in his name which since then has funded organizations and associations that support families in need in the ceramics district The Foundation also supports a variety of projects such as the summer play scheme for employees children the Premio Lucchese and the Florim HealthampTraining Center described in more detail below
The main projects undertaken in 2016 include the funding of the purchase of 10 defibrillators for the Municipality of Fiorano and the contributions made to the purchase of paediatric ambulances for the local area and to support the Parish charitable organizations and social services in the district
Watch the Premio Lucchese video
The project run jointly by Florim and Sassuolo Hospital adopts a completely new model combining industrial culture and healthcare in an original way to benefit the local people and community thanks to the coming-together of a ceramic coverings manufacturer and the public-private joint venture Ospedale di Sassuolo Spa Florim HealthampTraining is the synthesis of this idea an experimental center which promotes local training for healthcare and other staff health education and information advanced medical simulation and research
The Center
On the main Florim site and opened on 16 April 2014 the Center is 550 square meters in area and contains a modular lecture theatre able to seat over 100 people and a number of classrooms for seminars and lessons At its heart is a state-of-the-art control room crammed with technology that operates dummies capable of reproducing human functions of all kinds Advanced simulation is a major aid to maintaining the skills of emergency healthcare workers with a particular focus on pediatric and neonatal resuscitation
Health meetings
Designed as a space for community use the Center also aims to become a place where all sections of the population - workers schoolchildren parents teachers volunteers and even just members of the public - can learn about preventive health care and acquire first aid skills After the distribution to Florim employees of a questionnaire surveying their training needs and preferences a Center Scientific Committee of Sassuolo Hospital medical personnel was appointed and drew up a plan of bi-monthly ldquoHealth meetingsrdquo All meetings are led by doctors with expertise in the various topics who answer the many questions from the audience at the end of their talks Between its opening and the end of December 2016 the Center hosted 13 meetings on a variety of topics attended by about 1000 people including employees their family members and the community at large
Healthcare discounts for Florim employees
The project also includes a major welfare program for all Florim employees and their family members entitling them to discounts and shorter waiting times for specialist examinations and outpatient diagnostic tests performed on a private basis
American Heart Association
The world-famous American Heart Association (AHA) is the oldest and most respected American voluntary organization dedicated to the fight against cardiovascular diseases and strokes In 2015 the AHA via the Simaid International Training Center named the Florim HealthampTraining Center as an Authorized Training Site for basic and advanced cardiopulmonary resuscitation
Florim HealthampTraining Center
2016 Sustainability Report
Watch the Health amp Training Center video
2016 Sustainability Report32
Product Responsibility
Here we summarize the concept of Made in Florim denoting a product that encapsulates the companys core values passion innovation a constant commitment to improvement and corporate social responsibility
Florim product certifications
CE Marking guarantees the user that the materials purchased meet the requirements of the relevant regulations and that the characteristics concerned are virtually unchanged for all production lots It is a declaration of conformity which protects the consumerrsquos safety The presence of the CE Marking on packaging guarantees that Florim products comply with the relevant regulatory requirements
Ecolabel (EC Regulation 662010) is a certification granted to products which comply with ecological and performance criteria set at a European level concerning raw material extraction supplier selection manufacturing processes packaging distribution use and disposal The certified Florim collections are Architech Ecotech Reverse Walks 10 by Floor Gres and Pietra del Nord under the Rex brand
Several ceramic tile collections bearing the Florim brands have earned certification from Bureau Veritas for their pre-consumer recycled material content These articles are therefore fully eco-compatible and can meet the environmental sustainability requirements imposed by many international certifications
Florim is a member of the US Green Building Council (USGBC) the most important association which promotes the reduction of buildings negative impact on the environment To allow the effective monitoring a projects level of sustainability the USGBC has developed a certification procedure for the development of sustainable buildings which assess and certifies the sustainability of a building in its entirety Florim materials are able to help to gain LEED points in a number of areas (data available on the Florim brand websites)
Florim has achieved the prestigious Greenguard certification for all its products Issued by the American body UL Environment this certification aims to reduce indoor pollution caused by interior design systems and materials UL Environment thus aims to protect health by improving air quality and reducing peoples exposure to chemicals and other pollutants Florim has also achieved Greenguard Gold Certification which imposes even stricter limits to confirm that a given product is suitable for use even in locations such as schools and health care facilities
The EPD or Environmental Product Declaration is a document which defines the environmental impacts arising from production In 2016 Florim participated in the study - certified by the German organization IBU - performed on the ceramics industry average data which aims to raise international awareness of the excellence of the environmental standards achieved
Beyond the standardsMade in Florim products are a guarantee of safety highly innovative content and eco-friendliness The people who produce them work in a safe place and in ethically sustainable conditions Due to their nature all Florim products are guaranteed free from pollutant emissions do not accumulate electrostatic charges are frostproof and completely inert and are undamaged by contact with flames The Groups Internet sites and collection catalogues contain the technical data sheets which detail the product information (slip-resistance breaking strain abrasion resistance etc) for every collection as well as its recycled material content with the relative certificates
During the period under consideration no banned products were placed on the market and the company was not found guilty of any breaches of the law with regard to data protection or its marketing and communication activities
EU Ecolabel nr IT2104
2016 Sustainability Report 33
Quality SystemThe current ISO 9001 standards define quality as the ability to satisfy explicit or implicit needs via a product or a service A Quality System implies constant improvement of company processes in order to realise products that always satisfy the customerrsquos needs Further to the 2016 audit Florim obtained the renewal of its UNI EN ISO 90012015 certification for the design manufacture and sale of all categories of ceramic tile
Objective Indicator 2012 2013 2014 2015 2016
Continual improvement of control of the production process
Percentage of First Grade Product ()
924 943 942 952 956
Quality rate () 883 905 903 905 909
Scrap rate () 44 41 42 42 49
Productivity (sq mhour) 186 188 186 190 200
Improvements in sales performance and customer satisfaction
Innovation rate () 330 296 367 455 364
Coverage () 795 714 814 813 816
Total portfolio shippable within one month ()
911 837 888 893 897
Optimization of range and stocks
Obsolete stock () 172 126 165 120 69
Stock turnover rate () 13 15 16 15 16
Gradual elimination of disputes complaints and claims concerning service
Square meters affected by complaints ()
17 12 08 12 09
Complaints by number of order items ()
10 11 11 10 10
Gradual improvement in staff skill levels
Employee turnover () 15 23 04 04 12
KeyPercentage of first grade product percentage ratio between the square meters of first grade products and the total square meters transferred to stockQuality rate percentage ratio between the square meters of first grade product transferred to stock and the square meters leaving the pressesScrap rate percentage difference between square meters of material leaving the presses and square meters of product actually transferred to stockProductivity ratio between the square meters transferred to stock and the total hours worked in the plantInnovation rate ratio between square meters sold belonging to series designed in the last three years and total square meters sold Florim uses this indicator to assess the effectiveness of its design process in terms of salesCoverage percentage ratio between square meters available for immediate shipment and the square meters on orderTotal portfolio of orders shippable within one month percentage ratio between the square meters which can be shipped in 30 days and the square meters on orderObsolete stock percentage ratio between the square meters of substandard discontinued produce and the total square meters in stock Stock turnover rate ratio between the square meters sold and the square meters in stockSquare meters affected by complaints percentage ratio between the square meters affected by complaints and the square meters soldComplaints by number of order items percentage ratio between the number of complaints and the number of items orderedEmployee turnover percentage ratio between the number of employees leaving the company and being replaced and the workforce at the start of the year
2016 Sustainability Report34
Casamood - Neutra 60 Collection
2016 Sustainability Report 35
OUR COMMITMENTS
The promises we keptIn our last Sustainability Report we committed to achieving a large number of objectives the following are the outcomes we attained
Relaunch of the ldquoCEDIT ndash Ceramiche drsquoItaliardquo brand OBJECTIVE ACHIEVED
Launch of the FLORIM stone brand OBJECTIVE ACHIEVED
Installation of a new latest-generation kiln at the Mordano plant OBJECTIVE ACHIEVED
Transfer of the Moscow showroom to new premises SCHEDULED FOR 2017
Creation of a new gatehouse at the Mordano plantOBJECTIVE POSTPONED TO GIVE PRIORITY TO THE CONSTRUCTION OF THE NEW FACTORY
Introduction of ERP system at Florim USA OBJECTIVE ACHIEVED
Installation of a new spray dryer and raw material handling system at Florim USA
OBJECTIVE ACHIEVED
Economic Responsibility
Renewal of certification of the Florim environmental and energy management system
OBJECTIVE ACHIEVED
Award of new certifications for collections manufactured with a high recycled material content
OBJECTIVE ACHIEVED
Continuation of work to reduce environmental impacts at Mordano especially with the reduction of energy costs
OBJECTIVE ACHIEVED
Continuation of the work to remove asbestos cement roofing materials at the Mordano plant
OBJECTIVE ACHIEVED
Expansion of the system which conveys rainwater to the treatment plant OBJECTIVE ACHIEVED
Reduction of the noise emissions of the air filtering systems OBJECTIVE ACHIEVED
Increase of recycling targets through constant awareness-raising amongst all staff and optimisation of recycling facilities
OBJECTIVE ACHIEVED
Continuation of replacement of the diesel forklift trucks for use on outdoor yards with electric vehicles
OBJECTIVE ACHIEVED
Environmental Responsibility
Running of fourth edition of Master Florim course with new procedures OBJECTIVE ACHIEVED
Creation of an internal refreshment area for the Fiorano office staff OBJECTIVE ACHIEVED
Improvement of corporate welfare through the activation of new free services and discounts tailored to employees needs
OBJECTIVE ACHIEVED
Continuation of the health meetings for the local community in association with Ospedale di Sassuolo Spa
OBJECTIVE ACHIEVED
Organization of new community events at Florim Gallery OBJECTIVE ACHIEVED
Organization of Florim Family Day 2016 A PARTY WAS ORGANISED FOR EMPLOYEES
Social Responsibility
2016 Sustainability Report36
The targets we set for ourselvesWe aim to achieve the following objectives in 2017
Economic Responsibility
Construction of a new factory at Mordano to produce large slabs
Launch of the project to unite the Florim spa sales organizations
Total restyling of the corporate and brand Internet sites
Launch of the HUB project - Intranet CRM Marketing Automation
New plants at Florim USA a press two sorting lines a polishing and rectifying line
New working spaces and cloakrooms for technical staff at the American plant
Environmental Responsibility
Purchase of a new cogenerator for the Mordano plant
Introduction of a new rainwater collection system at Fiorano
Land reclamation project involving covering of the Rio Spezzano stream at Fiorano
Implementation of new software for continual monitoring of energy impacts at Fiorano
Modernisation of the compressor room to improve energy impacts at Mordano
Increase of recycling targets through constant awareness-raising amongst all staff and optimisation of recycling facilities
Continuation of replacement of the diesel forklift trucks for use on outdoor yards with electric vehicles
Social Responsibility
Improvement of corporate welfare through the activation of new free services and discounts tailored to employees needs
Continuation of the health meetings for the local community in association with Ospedale di Sassuolo Spa
Organization of new community events at Florim Gallery
Organization of a new event for Florim spa employees
New offices for hospitality and events staff at Fiorano
2016 Sustainability Report 37
FLORIM USA
Profile and Economic ResponsibilityFlorim USA with registered office at Clarksville - Tennessee - and its subsidiary Florim Solution Inc have been part of the Florim Group since 2000 The Florim USA manufacturing plant one of the largest most technologically advanced in the United States produces porcelain stoneware tiles for the residential market and undertakes commercial projects in North America During the last few years Florim USA has implemented a growth and process optimization strategy which has generated significant technological progress with more innovations planned for the future The strategy adopted will put Florim USA at the worldwide state of the art in porcelain stoneware tile manufacture
In 2016 of the 18 million USD invested 147 was allocated for installation of a latest-generation raw material handling system and a large spray-dryer with an innovative sorting system Improvements were made to other parts of the process to increase their efficiency leading to a further reduction in emissions and scrap rates Additional investments are planned during 2017 to continue this dual trend of rising production with mitigation of environmental impact
The new Florim Flagship Store in New York (152 Madison Avenue 32nd Street)
2016 Sustainability Report38
Environmental ResponsibilityFlorim USA implements the same environmental policy as Florim and is committed to achieving the following objectives
bull reduction of the energy used in the production processbull improvement of the waste management process with a focus on recovery and reusebull introduction of new more eco-efficient technologiesbull adoption of integrated management systems
Florim USA has been pursuing a strategy of careful management of its operations and environmental impact for a number of years Here we summarise the main actions taken and the results achieved in 2016
bull installation of a latest-generation spray-dryer in 2016bull installation of an innovative raw material handling system in 2016bull 100 recycling of wastewater within the processbull optimisation of the management of water bottles with elimination of about 34200 of them per annumbull reuse of almost all production scrap (+99)bull 157000 kg of cardboard recycled in 2016bull award of two different types of product certificationbull 9300 kg of plastic recycledbull recycling of 17 complete trucks of pallets
Environmental Projects and Awards
Florim USA has received Clarksville Montgomery County Green Certification (CMCGC) CMCGC is a program designed to help companies learn and implement best practices in the area of environmental stewardship to sustain the local communityrsquos resources through a series of free workshops taught by local environmental specialists Since 2014 Florim has allocated some of its Environment Managers time for the running of these workshopsFlorim USA earned this green company certification thanks to a large number of projects first and foremost the one which eliminated the use of disposable water bottles replaced with individual reusable bottles provided by the company and a series of fill-up stations About 34200 bottles are removed from the waste cycle every year
During the latest phase of its plant optimization Florim USA has implemented a thorough construction material reuse policy In the various stages of demolition of the old plants including the old storage silos the concrete debris was recovered and reused in other construction worksThis project alone generated 11500 tons of recycled aggregate as well as several hundred tonnes of metal sold to a recycling firm
Environmental management system and eco-compatible products
Florim USArsquos products help builders and designers to meet the requirements for sustainable buildings as defined by the United States Green Building Council (USGBC) through the LEED Green Building Rating System This protocol evaluates and certifies the environmental sustainability of a building as a unit from its design to its day to day management To gain LEED credits many of the Florim USA product lines contain a significant percentage of recycled material (40 or more)This feature contributes to an increase in the LEED score in the projects where these products are installed In 2014 Florim USA together with a large number of other US tile manufacturers and the Tile Council of North America drew up a type III environmental product declaration (EPD) certified under the ISO 14025 standard This ceramic tile life-cycle analysis enables Florim USA products to gain LEED points under the new LEED v4 protocol
2016 Sustainability Report 39
Water use (gallonsper million square feetof finished tiles)
208137 216246 204962 195280 194268
Energy use
2012 2013 2014 2015 2016
Cubic feet of natural gas per million square feet of finished tiles 9343383 9149721 8331170 8390503 8380000
kWh per million square feet of finished tiles 510972 491171 450594 465976 490300
Emissions
Particulate material lt 21024 tonnes per annum
SO2 (sulphur dioxide) lt 1674 tonnes per annum
VOC (volatile organic compounds) lt 1245 tonnes per annum
NOx (oxides of nitrogen) lt 1501 tonnes per annum
Environmental performance indicators ndash summary
The following are the main environmental indicators related to the impact and performance of Florim USA during 2016
Pre-consumer recycled material
Its internal material recycling processes enable the company to minimise its environmental impact since most of the material which would otherwise be sent to landfills or other waste treatment centers is reusedbull Wastewater is entirely recycled within the production process without any discharge into the municipal drainsbull The material in the collection bags from the tile body and glaze preparation areas the press and glaze application is entirely recycled within the processbull All scrap fired tiles are entirely recycled within the processbull 157000 kg of cardboard was sold to an external recycled material dealerbull 17 trucks of unusable wooden pallets were sold to a pallet regeneration companybull About 9300 kg of waste shrink-wrap plastic film was recovered and recycled
Post-consumer recycled material
About 82000 kg of glass was removed from the flow of waste destined for the local landfill and recycled within the process Florim USA has signed an agreement with the local landfill for consignment of all the glass it handles which is collected and set aside for recycling
Water use disposal and reuse
The water used during the production process is recycled continually therefore no water is discharged into the municipal drains
The 2016 emissions figures are in line with those for previous years well below the standards laid down
Water use 2012 2013 2014 2015 2016
Water use (gallons per million square feet of finished tiles) 216246 204962 195280 194268 203928
2016 Sustainability Report40
Social Responsibility
Employees
The Florim USA workforce comprises 348 staff employed at the production site the Clarksville and Nashville outlet stores and the Florim Solution offices Of the 348 employees 273 are blue-collar workers and 75 office staff 5 employees are Italians on secondment to the United States Florim USA offers a number of benefits to full time employeesbull health and dental care insurancebull Vision insurancebull life insurance for employees and optionally for family membersbull temporary and permanent disability supportbull employee pension plan
2012 2013 2014 2015 2016
Workplace injuries 50 41 22 29 27
The Employee Assistance Program (EAP) also offers support to employees and their families in the event of psychological difficulty or other problems that can have a negative impact on their quality of life Florim USA supports all the costs of the program
Equal opportunities
Florim USA provides equal opportunities in all employment practices to all qualified employees and applicants regardless of race colour religion gender national origin age disability or membership of the armed forces or any other category protected by federal state or local laws
Health and safety
FLORIM USA is committed to ensuring a safe healthy workplace for all employees It therefore replaces old and obsolete equipment with new technologically more modern machinery and updates safety plans as new information gradually becomes availableAs well as an internal supervisor Florim USA has also appointed a health and safety committee which constantly monitors the plans effectiveness and makes any changes requiredThere are currently 20 plant employees who hold CPRfirst aid qualifications They occupy a variety of positions and work different shifts within the plant and have volunteered to attend training courses sponsored by the company for the award of these qualifications
Training
In 2016 every Florim USA employee attended an average of about 25 hours of training The training provided covered the operating procedures for the new equipment the main safety plans and the procedures for use of existing equipment for new employeesAll new staff undergo specific training for their department focusing on the safety-related aspects of the department concerned as well as more generalized safety training
Some of these themes includebull safe correct use of forklift trucksbull training on work in confined spacesbull shutdownwarning procedures and safe electrical practicesbull safe lifting procedures
2016 Sustainability Report 41
Florim USA ndash (Clarksville Tennessee)
For employees wishing to continue their education Florim USA offers assistance through the Educational Assistance Program It provides aid with the cost of education and textbooks and is available for any employee wishing to study for a technical qualification a diploma or a degreeThe plant staff training and education plan also includes various training schemes at Florim Italy where employees are instructed in the use of new equipment before it is installed at the American plantThroughout 2016 Florim USA will continue to provide a free e-learning course on its website for architects engineers and contractors (AEC) to improve their knowledge of sustainable porcelain stoneware tiles
Employee welfare activities
Florim USA employee picnic - In 2016 the company once again held its annual picnic for employees offering them a wide variety of foods games activities and live shows in an event which provided an unforgettable days enjoyment Within the event participants received prizes in the form of vouchers and gifts
Employee anniversary dinner - 2016 again saw the usual dinner to honour Florim USA employees with 5 10 15 20 or more years of service A special evening event was held in the presence of the Chairman and the other managers to celebrate the loyalty and hard work these employees have contributed during their careers with the firm
2016 Sustainability Report42
Local Community
During 2016 Florim USA continued to provide its support to a number of projects in its local areaSome of the main projects include
Scholarships - As part of its work to support the local community Florim has an established scheme which awards scholarships to deserving students at the Austin Peay State University in memory of Florim Group founder Giovanni Lucchese In December 2016 a delegation of Florim representatives attended a scholarship presentation lunch at the Austin Peay State University hosted by the President of the University
Montgomery County Green Certification Program - Florim USA staff actively participate in the Montgomery County Green Certification Program which aims to help companies learn and implement best practices with regard to safeguarding the environment and environmental resources
Donations - In 2016 the company again made a large number of donationsbull book collection for the Austin Peay State University Employees made a generous donation of used books in good condition for children and young people of the APSU in the hope of further promoting the education of future generationsbull to Community Cares the national organization that promotes the acceptance and social inclusion of individuals with Downs Syndromebull to the Aspire Clarksville Foundation a 501(c)(3) charitable foundation whose mission is to continuously improve the economy and the livability (quality of life) of the community by attracting significant capital investment and expansion by businesses and corporations thereby creating better opportunities and higher paying jobs for residentsbull to the Alzheimerrsquos Association a non-profit voluntary organization dedicated to the care and support of Alzheimers Disease sufferers and research into the condition Its aim is to eliminate the disease through the advancement of research to provide and enhance care and support for all affected and to reduce the risk of dementia through the promotion of brain health
Other activities - Every year Florim USA participates in the United Way Drive initiative to support local non-profit organizations which provide economic assistance and psychological support to persons in difficulty
Florim USA provides regular support to the Salvation Army by collecting canned foods for persons in needIn 2016 the company again organised a canned food collection for Manna Cafeacute in Clarksville TN Manna Cafeacute is a local non-profit organization based in Middle Tennessee with the primary mission of meeting peoples fundamental need for food before encouraging them to permanently change their lives for the better More than 15 of the population in Montgomery County are affected by food insecurity (about 28000 people) The percentage of children affected is about 215 a third of whom are excluded by income from federal programs such as free school mealsFinally donations were made tobull American Lung Association the leading organization working to save lives by improving lung health and preventing lung disease through research and educationbull Cheer for a Cure an organization that gives money directly to afflicting families who have a loved one suffering from cancer and need assistance to alleviate the added financial stressbull Habitat for Humanity Since 1992 Habitat for Humanity in Montgomery County Tennessee has worked with 93 low-income families with more than 210 children to revitalise various parts of Clarksville-Montgomery County by building new homes
2016 Sustainability Report 43
Quality SystemFlorim USA works under a Quality System certified to UNI EN ISO 9001 standards The following are some of the figures in brief
Objective Indicator 2012 2013 2014 2015 2016
Optimisation of control of the production process
Percentage of First Grade Product ()
932 917 940 949 9510
Quality rate () 883 857 893 906 909
Scrap rate () 56 65 48 45 45
KeyPercentage of first grade product ratio between square feet of first grade material and total square feet transferred to stockQuality rate ratio between square feet of first grade material transferred to stock and square feet pressedScrap rate ratio between square feet pressed and square feet of product actually transferred to stock
Other ActivitiesFlorim USA and trade shows
In 2016 Florim USA participated at a number of shows and events including Coverings the AIA Tennessee Convention Hardscape North America Total Solutions Plus Neocon International Pool - Spa and Patio Expo These events targeted at the various categories of industry professionals such as dealers and designers gave Florim USA the opportunity to present its new range of indoor and outdoor products
Design Center
In December 2015 Florim USA opened a design center showroom in Nashville (TN) in a strategic location close to the airport and the city center With a spacious area to host individual CEU presentations and workshops this design center has the potential to be a major resource for local architects In 2016 it was also awarded the ldquoOutstanding Boothrdquo booth prize at the 33rd edition of the Annual Home Decorating and Remodeling Show The location is the ideal place for sharing ideas finding inspiration and putting professionals and architects in touch with each other
Florim Nashville Design Center
2016 Sustainability Report44
GRI International Sustainability Indicators SDGsThe information below illustrates the correspondence between the Florim (Italian companies) 2016 Sustainability Report the GRI-G4 guidelines and the icons of the Sustainable Development Goals (SDGs) definitively adopted by the United NationsA description of the SDGs is available at wwwglobalcompactnetworkorg
GRI indicators
Description Page Reference to SDGs
1 Strategy and Analysis
G4-1 Statement from the most senior decision-maker of the organization 5
2 Organization profile
G4-3 Name of the organization 2
G4-4 Primary brands products andor services 9
G4-5 Location of the organizations headquarters 9
G4-6 Number and names of the countries where the organization operates 9
G4-7 Nature of ownership and legal form 14
G4-8 Markets served 9
G4-9 Scale of the organization 8 8
G4-10 Significant changes regarding size structure or ownership 8
G4-11 Employees covered by National Collective Bargaining Agreement 27
G4-12 Describe the supply chain 16
G4-13Significant changes regarding the organizationrsquos size structure ownership or its supply chain
Reporting process
launched
G4-14 Precautionary principle 22
G4-15 List of external commitments in which the company is involved 22 32 33
G4-16 Associations or interest groups in which the company is involvedwwwflorimit gt
about us gt partnerships
3 Identified material aspects and boundaries
G4-18 Process used to define the report content 6
G4-19 Material aspects 16
G4-20 Boundaries of each material aspect 6
G4-21 Boundaries of each material aspect outside the organizationPartial reporting
(pages 6 16)
G4-22 Explanation of the effect of any restatements of information provided in previous reports 6
G4-23Significant changes from previous reporting periods in the scope boundaries or measurement methods
6
3 Stakeholder engagement
G4-24 List of stakeholders 15
G4-25 Identification of stakeholders 15
G4-26 Stakeholder engagement 6 16
G4-27 Key topics and concerns that have been raised through stakeholder engagement 16
4 Boundary of the Report
G4-28 Reporting period 6
G4-29 Date of publication 2
G4-30 Reporting cycle 6
G4-31 Contacts and addresses for additional information 46
5 GRI Content Index
G4-32 Reporting option chosen 6 7
G4-33 External assurance of ReportThe Report is not
externally assured
2016 Sustainability Report 45
GRI indicators
Description Page Reference to SDGs
6 Governance
G4-34 Governance structure 14
7 Ethics and integrity
G4-56 Values principles standards and norms of behavior 13 16
Economic performance indicators
EC1 Direct economic value generated and distributed 19 25789
EC5 Wages 27 158
EC7 Development and impact of infrastructure investments and services supported 23 24 31 257911
Environmental performance indicators
G4-EN2 Percentage of materials used that are recycled input materials 17 22 23 812
G4-EN3 Energy consumption within the organization 24 781213
G4-EN6 Reduction of energy consumption 17 24 71213
G4-EN7 Reductions in energy requirements of products and servicesPartial reporting
(page 22)71213
G4-EN8 Total water withdrawal by source 17 23 6
G4-EN10 Percentage and total volume of water recycled and reused 17 21 23 612
G4-EN11 Biodiversity 23 615
G4-EN15 Total indirect greenhouse gas emissions by weight 25 3121315
G4-EN16 Total indirect greenhouse gas emissions by weight 25 3121315
G4-EN19 Reduction of greenhouse gas emissions 8 24 1315
G4-EN21 NOx SOx and other significant air emissions 25 31215
G4-EN22 Total water discharge by quality and destination 23 6
G4-EN23 Total weight of waste by type 17 22 3612
G4-EN27 Impact mitigation of environmental impacts of products and services 23 68121315
G4-EN29 Monetary value of significant fines 22 16
G4-EN30 Significant environmental impacts of transporting products and goodsmaterialsPartial reporting
(page 25)111213
Social performance indicators
G4-LA1 Total number and rates of new employee hires and employee turnoverPartial reporting
(pages 17 27)8
G4-LA6 Workplace injury ratesPartial reporting
(page 17)38
G4-LA9 Average hours of training per year per employee 28 48
G4-LA12Composition of governance bodies and breakdown of employees according to gender age group etc
27 58
G4-LA13 Ratio of basic salary and total remuneration of women to men 27 5810
Society
G4-SO1 Operations with local community engagement 12 31 16
G4-SO3 Operations assessed for risks related to corruptionPartial reporting
(page 13)
Product responsibility
G4-PR1 Assessment of health and safety impacts for improvement 23 32
G4-PR3 Type of information about products and services required by the procedures 32 12
G4-PR5 Proceedings relating to customer satisfaction including surveys conducted to measure it 33
G4-PR6 Sale of banned or disputed products 32
G4-PR8 Number of substantiated complaints regarding breaches of privacy 32 16
2016 Sustainability Report46
Your Assessment
You are kindly requested to take a few minutes of your time to give us your assessment and any suggestions to enable us to improve future editions of our Sustainability Report
Click here to send us your feedback
To keep up to date with our business
Spazio CEDIT - interior (Milan)
wwwflorimiten
Florim Ceramiche
Florim4Architects
Florim_ceramiche
Florim Ceramiche spa
Florim Ceramiche
Florim Ceramiche
For any further information please feel free to contact our communications department comunicazioneflorimit
2016 Sustainability Report 47
Premio Lucchese - Florim Gallery (Fiorano Modenese - Modena Italy)
Intrapresaelig Guggenheim Collection - Massimo Bottura in Florim Gallery (Fiorano Modenese - Modena Italy)
Panathlon Christmas Gala - Florim Gallery (Fiorano Modenese - Modena Italy)
2016 Sustainability Report48
White Christmas Party - Florim Gallery (Fiorano Modenese - Modena Italy)
Cersaie - Mario Biondi in Florim Gallery (Fiorano Modenese - Modena Italy)
Dal buio alla luce - Social event at Florim Gallery (Fiorano Modenese - Modena Italy)
2016 Sustainability Report 49
Florim Gallery entrance (Fiorano Modenese - MO)
2016 Sustainability Report52
Florim Ceramiche spaVia Canaletto 24 - 41042 Fiorano Modenese (Modena Italy) - Tel +39 0536 840111 - wwwflorimit
2016 Sustainability Report 29
The Master in Florim organized for the fourth time in 2016 is a vocational training project which aims to bridge the gap between education (high school or university) and the world of work The program which is one of the companys Social Responsibility projects sets out to help young people to get to know the company through a well structured work experience plan It offers a distinctively northern European approach with a method which alternates classroom teaching with internships in the various areas of the company Participants new university or high school graduates specialising in various subjects all below 30 years of age are therefore able to gain hands-on experience of all Florim departments from RampD to the production process and product distribution for an all-inclusive vision The MASTER courses ambitious aim is to match the individual participants talents with the companys real needs At the end of each edition the company hires all or some of the selected candidates enabling it to acquire new skills new experiences and new energy
Master 40 in figures
20 young people taking part6 months of training13 external lecturers264 hours of classroom teaching392 hours of practical training4 company visits (Ferrari Tetrapak Cremonini and Ducati)50 days of work experience on rotation involving 15 departments1 month of project work
The projects prestige is enhanced by its economic context since Florim pays the young participants for the entire period and its aim is to deal with the thorny problem of youth unemployment The Master has won approval from various faculties at major Italian universities The project was also a winner in the Emilia-Romagna Regions 2016 awards for Corporate Social Responsibility projects run in the local community A prize in the ldquoBusiness and Educationrdquo category was assigned to the Master project which aims to give young people the skills required for sustainable development
Master in Florim
2016 Sustainability Report
Watch the videoof the 4th edition
2016 Sustainability Report30
Local Community amp Culture
This chapter describes a number of programs Florim runs for the local community in the area where it originated and where it has been working for more than 50 years
Politecnico di Milano
Since the 20052006 academic year Florim has been a partner sponsor of a large number of Postgraduate Courses run by POLIDesign the Politecnico di Milano consortium which organizes its Master Degree coursesAlso in association with POLIDesign since 2012 Florims Milan showroom has hosted several design events for architects and designers of every nationality
Aziende modenesi per la RSI
ldquoAziende Modenesi per la RSIrdquo an independent open inclusive association of companies in the Modena area which believe in the principles and values of Corporate Social Responsibility was established by public deed on 30 September 2014 with Florim as a founding member Florim hosts the associations member companies every year to discuss the various topics proposed
Premio Lucchese
The Premio Lucchese presented for the twenty-ninth time in 2016 was established in memory of Giovanni Lucchese and consists of scholarships awarded to students at the ldquoAlessandro Voltardquo Technical High School in Sassuolo who graduate with full marks The award ceremony held every year at the Florim Gallery in association with Societagrave Ceramica Italiana of Bologna includes a talk given by a leading personality on a topic of current interest to an audience of eager young listeners
Intrapresaelig Collezione Guggenheim
As befits a company that combines the values of its local community and historic and artistic heritage with a flair for research and innovation Florim recently launched a partnership with the Peggy Guggenheim Collection Since its foundation Florim has always had a unique ability to incorporate the true cultural significance of its industry in its business model and by this project once again confirms its commitment to promoting art by supporting a collection of extraordinary beauty
Fondazione Ing Giovanni Lucchese
More than thirty years after the untimely death of Giovanni Lucchese ndash founder of what was then Floor Gres currently Florim ndash in 2013 his family established a Foundation in his name which since then has funded organizations and associations that support families in need in the ceramics district The Foundation also supports a variety of projects such as the summer play scheme for employees children the Premio Lucchese and the Florim HealthampTraining Center described in more detail below
The main projects undertaken in 2016 include the funding of the purchase of 10 defibrillators for the Municipality of Fiorano and the contributions made to the purchase of paediatric ambulances for the local area and to support the Parish charitable organizations and social services in the district
Watch the Premio Lucchese video
The project run jointly by Florim and Sassuolo Hospital adopts a completely new model combining industrial culture and healthcare in an original way to benefit the local people and community thanks to the coming-together of a ceramic coverings manufacturer and the public-private joint venture Ospedale di Sassuolo Spa Florim HealthampTraining is the synthesis of this idea an experimental center which promotes local training for healthcare and other staff health education and information advanced medical simulation and research
The Center
On the main Florim site and opened on 16 April 2014 the Center is 550 square meters in area and contains a modular lecture theatre able to seat over 100 people and a number of classrooms for seminars and lessons At its heart is a state-of-the-art control room crammed with technology that operates dummies capable of reproducing human functions of all kinds Advanced simulation is a major aid to maintaining the skills of emergency healthcare workers with a particular focus on pediatric and neonatal resuscitation
Health meetings
Designed as a space for community use the Center also aims to become a place where all sections of the population - workers schoolchildren parents teachers volunteers and even just members of the public - can learn about preventive health care and acquire first aid skills After the distribution to Florim employees of a questionnaire surveying their training needs and preferences a Center Scientific Committee of Sassuolo Hospital medical personnel was appointed and drew up a plan of bi-monthly ldquoHealth meetingsrdquo All meetings are led by doctors with expertise in the various topics who answer the many questions from the audience at the end of their talks Between its opening and the end of December 2016 the Center hosted 13 meetings on a variety of topics attended by about 1000 people including employees their family members and the community at large
Healthcare discounts for Florim employees
The project also includes a major welfare program for all Florim employees and their family members entitling them to discounts and shorter waiting times for specialist examinations and outpatient diagnostic tests performed on a private basis
American Heart Association
The world-famous American Heart Association (AHA) is the oldest and most respected American voluntary organization dedicated to the fight against cardiovascular diseases and strokes In 2015 the AHA via the Simaid International Training Center named the Florim HealthampTraining Center as an Authorized Training Site for basic and advanced cardiopulmonary resuscitation
Florim HealthampTraining Center
2016 Sustainability Report
Watch the Health amp Training Center video
2016 Sustainability Report32
Product Responsibility
Here we summarize the concept of Made in Florim denoting a product that encapsulates the companys core values passion innovation a constant commitment to improvement and corporate social responsibility
Florim product certifications
CE Marking guarantees the user that the materials purchased meet the requirements of the relevant regulations and that the characteristics concerned are virtually unchanged for all production lots It is a declaration of conformity which protects the consumerrsquos safety The presence of the CE Marking on packaging guarantees that Florim products comply with the relevant regulatory requirements
Ecolabel (EC Regulation 662010) is a certification granted to products which comply with ecological and performance criteria set at a European level concerning raw material extraction supplier selection manufacturing processes packaging distribution use and disposal The certified Florim collections are Architech Ecotech Reverse Walks 10 by Floor Gres and Pietra del Nord under the Rex brand
Several ceramic tile collections bearing the Florim brands have earned certification from Bureau Veritas for their pre-consumer recycled material content These articles are therefore fully eco-compatible and can meet the environmental sustainability requirements imposed by many international certifications
Florim is a member of the US Green Building Council (USGBC) the most important association which promotes the reduction of buildings negative impact on the environment To allow the effective monitoring a projects level of sustainability the USGBC has developed a certification procedure for the development of sustainable buildings which assess and certifies the sustainability of a building in its entirety Florim materials are able to help to gain LEED points in a number of areas (data available on the Florim brand websites)
Florim has achieved the prestigious Greenguard certification for all its products Issued by the American body UL Environment this certification aims to reduce indoor pollution caused by interior design systems and materials UL Environment thus aims to protect health by improving air quality and reducing peoples exposure to chemicals and other pollutants Florim has also achieved Greenguard Gold Certification which imposes even stricter limits to confirm that a given product is suitable for use even in locations such as schools and health care facilities
The EPD or Environmental Product Declaration is a document which defines the environmental impacts arising from production In 2016 Florim participated in the study - certified by the German organization IBU - performed on the ceramics industry average data which aims to raise international awareness of the excellence of the environmental standards achieved
Beyond the standardsMade in Florim products are a guarantee of safety highly innovative content and eco-friendliness The people who produce them work in a safe place and in ethically sustainable conditions Due to their nature all Florim products are guaranteed free from pollutant emissions do not accumulate electrostatic charges are frostproof and completely inert and are undamaged by contact with flames The Groups Internet sites and collection catalogues contain the technical data sheets which detail the product information (slip-resistance breaking strain abrasion resistance etc) for every collection as well as its recycled material content with the relative certificates
During the period under consideration no banned products were placed on the market and the company was not found guilty of any breaches of the law with regard to data protection or its marketing and communication activities
EU Ecolabel nr IT2104
2016 Sustainability Report 33
Quality SystemThe current ISO 9001 standards define quality as the ability to satisfy explicit or implicit needs via a product or a service A Quality System implies constant improvement of company processes in order to realise products that always satisfy the customerrsquos needs Further to the 2016 audit Florim obtained the renewal of its UNI EN ISO 90012015 certification for the design manufacture and sale of all categories of ceramic tile
Objective Indicator 2012 2013 2014 2015 2016
Continual improvement of control of the production process
Percentage of First Grade Product ()
924 943 942 952 956
Quality rate () 883 905 903 905 909
Scrap rate () 44 41 42 42 49
Productivity (sq mhour) 186 188 186 190 200
Improvements in sales performance and customer satisfaction
Innovation rate () 330 296 367 455 364
Coverage () 795 714 814 813 816
Total portfolio shippable within one month ()
911 837 888 893 897
Optimization of range and stocks
Obsolete stock () 172 126 165 120 69
Stock turnover rate () 13 15 16 15 16
Gradual elimination of disputes complaints and claims concerning service
Square meters affected by complaints ()
17 12 08 12 09
Complaints by number of order items ()
10 11 11 10 10
Gradual improvement in staff skill levels
Employee turnover () 15 23 04 04 12
KeyPercentage of first grade product percentage ratio between the square meters of first grade products and the total square meters transferred to stockQuality rate percentage ratio between the square meters of first grade product transferred to stock and the square meters leaving the pressesScrap rate percentage difference between square meters of material leaving the presses and square meters of product actually transferred to stockProductivity ratio between the square meters transferred to stock and the total hours worked in the plantInnovation rate ratio between square meters sold belonging to series designed in the last three years and total square meters sold Florim uses this indicator to assess the effectiveness of its design process in terms of salesCoverage percentage ratio between square meters available for immediate shipment and the square meters on orderTotal portfolio of orders shippable within one month percentage ratio between the square meters which can be shipped in 30 days and the square meters on orderObsolete stock percentage ratio between the square meters of substandard discontinued produce and the total square meters in stock Stock turnover rate ratio between the square meters sold and the square meters in stockSquare meters affected by complaints percentage ratio between the square meters affected by complaints and the square meters soldComplaints by number of order items percentage ratio between the number of complaints and the number of items orderedEmployee turnover percentage ratio between the number of employees leaving the company and being replaced and the workforce at the start of the year
2016 Sustainability Report34
Casamood - Neutra 60 Collection
2016 Sustainability Report 35
OUR COMMITMENTS
The promises we keptIn our last Sustainability Report we committed to achieving a large number of objectives the following are the outcomes we attained
Relaunch of the ldquoCEDIT ndash Ceramiche drsquoItaliardquo brand OBJECTIVE ACHIEVED
Launch of the FLORIM stone brand OBJECTIVE ACHIEVED
Installation of a new latest-generation kiln at the Mordano plant OBJECTIVE ACHIEVED
Transfer of the Moscow showroom to new premises SCHEDULED FOR 2017
Creation of a new gatehouse at the Mordano plantOBJECTIVE POSTPONED TO GIVE PRIORITY TO THE CONSTRUCTION OF THE NEW FACTORY
Introduction of ERP system at Florim USA OBJECTIVE ACHIEVED
Installation of a new spray dryer and raw material handling system at Florim USA
OBJECTIVE ACHIEVED
Economic Responsibility
Renewal of certification of the Florim environmental and energy management system
OBJECTIVE ACHIEVED
Award of new certifications for collections manufactured with a high recycled material content
OBJECTIVE ACHIEVED
Continuation of work to reduce environmental impacts at Mordano especially with the reduction of energy costs
OBJECTIVE ACHIEVED
Continuation of the work to remove asbestos cement roofing materials at the Mordano plant
OBJECTIVE ACHIEVED
Expansion of the system which conveys rainwater to the treatment plant OBJECTIVE ACHIEVED
Reduction of the noise emissions of the air filtering systems OBJECTIVE ACHIEVED
Increase of recycling targets through constant awareness-raising amongst all staff and optimisation of recycling facilities
OBJECTIVE ACHIEVED
Continuation of replacement of the diesel forklift trucks for use on outdoor yards with electric vehicles
OBJECTIVE ACHIEVED
Environmental Responsibility
Running of fourth edition of Master Florim course with new procedures OBJECTIVE ACHIEVED
Creation of an internal refreshment area for the Fiorano office staff OBJECTIVE ACHIEVED
Improvement of corporate welfare through the activation of new free services and discounts tailored to employees needs
OBJECTIVE ACHIEVED
Continuation of the health meetings for the local community in association with Ospedale di Sassuolo Spa
OBJECTIVE ACHIEVED
Organization of new community events at Florim Gallery OBJECTIVE ACHIEVED
Organization of Florim Family Day 2016 A PARTY WAS ORGANISED FOR EMPLOYEES
Social Responsibility
2016 Sustainability Report36
The targets we set for ourselvesWe aim to achieve the following objectives in 2017
Economic Responsibility
Construction of a new factory at Mordano to produce large slabs
Launch of the project to unite the Florim spa sales organizations
Total restyling of the corporate and brand Internet sites
Launch of the HUB project - Intranet CRM Marketing Automation
New plants at Florim USA a press two sorting lines a polishing and rectifying line
New working spaces and cloakrooms for technical staff at the American plant
Environmental Responsibility
Purchase of a new cogenerator for the Mordano plant
Introduction of a new rainwater collection system at Fiorano
Land reclamation project involving covering of the Rio Spezzano stream at Fiorano
Implementation of new software for continual monitoring of energy impacts at Fiorano
Modernisation of the compressor room to improve energy impacts at Mordano
Increase of recycling targets through constant awareness-raising amongst all staff and optimisation of recycling facilities
Continuation of replacement of the diesel forklift trucks for use on outdoor yards with electric vehicles
Social Responsibility
Improvement of corporate welfare through the activation of new free services and discounts tailored to employees needs
Continuation of the health meetings for the local community in association with Ospedale di Sassuolo Spa
Organization of new community events at Florim Gallery
Organization of a new event for Florim spa employees
New offices for hospitality and events staff at Fiorano
2016 Sustainability Report 37
FLORIM USA
Profile and Economic ResponsibilityFlorim USA with registered office at Clarksville - Tennessee - and its subsidiary Florim Solution Inc have been part of the Florim Group since 2000 The Florim USA manufacturing plant one of the largest most technologically advanced in the United States produces porcelain stoneware tiles for the residential market and undertakes commercial projects in North America During the last few years Florim USA has implemented a growth and process optimization strategy which has generated significant technological progress with more innovations planned for the future The strategy adopted will put Florim USA at the worldwide state of the art in porcelain stoneware tile manufacture
In 2016 of the 18 million USD invested 147 was allocated for installation of a latest-generation raw material handling system and a large spray-dryer with an innovative sorting system Improvements were made to other parts of the process to increase their efficiency leading to a further reduction in emissions and scrap rates Additional investments are planned during 2017 to continue this dual trend of rising production with mitigation of environmental impact
The new Florim Flagship Store in New York (152 Madison Avenue 32nd Street)
2016 Sustainability Report38
Environmental ResponsibilityFlorim USA implements the same environmental policy as Florim and is committed to achieving the following objectives
bull reduction of the energy used in the production processbull improvement of the waste management process with a focus on recovery and reusebull introduction of new more eco-efficient technologiesbull adoption of integrated management systems
Florim USA has been pursuing a strategy of careful management of its operations and environmental impact for a number of years Here we summarise the main actions taken and the results achieved in 2016
bull installation of a latest-generation spray-dryer in 2016bull installation of an innovative raw material handling system in 2016bull 100 recycling of wastewater within the processbull optimisation of the management of water bottles with elimination of about 34200 of them per annumbull reuse of almost all production scrap (+99)bull 157000 kg of cardboard recycled in 2016bull award of two different types of product certificationbull 9300 kg of plastic recycledbull recycling of 17 complete trucks of pallets
Environmental Projects and Awards
Florim USA has received Clarksville Montgomery County Green Certification (CMCGC) CMCGC is a program designed to help companies learn and implement best practices in the area of environmental stewardship to sustain the local communityrsquos resources through a series of free workshops taught by local environmental specialists Since 2014 Florim has allocated some of its Environment Managers time for the running of these workshopsFlorim USA earned this green company certification thanks to a large number of projects first and foremost the one which eliminated the use of disposable water bottles replaced with individual reusable bottles provided by the company and a series of fill-up stations About 34200 bottles are removed from the waste cycle every year
During the latest phase of its plant optimization Florim USA has implemented a thorough construction material reuse policy In the various stages of demolition of the old plants including the old storage silos the concrete debris was recovered and reused in other construction worksThis project alone generated 11500 tons of recycled aggregate as well as several hundred tonnes of metal sold to a recycling firm
Environmental management system and eco-compatible products
Florim USArsquos products help builders and designers to meet the requirements for sustainable buildings as defined by the United States Green Building Council (USGBC) through the LEED Green Building Rating System This protocol evaluates and certifies the environmental sustainability of a building as a unit from its design to its day to day management To gain LEED credits many of the Florim USA product lines contain a significant percentage of recycled material (40 or more)This feature contributes to an increase in the LEED score in the projects where these products are installed In 2014 Florim USA together with a large number of other US tile manufacturers and the Tile Council of North America drew up a type III environmental product declaration (EPD) certified under the ISO 14025 standard This ceramic tile life-cycle analysis enables Florim USA products to gain LEED points under the new LEED v4 protocol
2016 Sustainability Report 39
Water use (gallonsper million square feetof finished tiles)
208137 216246 204962 195280 194268
Energy use
2012 2013 2014 2015 2016
Cubic feet of natural gas per million square feet of finished tiles 9343383 9149721 8331170 8390503 8380000
kWh per million square feet of finished tiles 510972 491171 450594 465976 490300
Emissions
Particulate material lt 21024 tonnes per annum
SO2 (sulphur dioxide) lt 1674 tonnes per annum
VOC (volatile organic compounds) lt 1245 tonnes per annum
NOx (oxides of nitrogen) lt 1501 tonnes per annum
Environmental performance indicators ndash summary
The following are the main environmental indicators related to the impact and performance of Florim USA during 2016
Pre-consumer recycled material
Its internal material recycling processes enable the company to minimise its environmental impact since most of the material which would otherwise be sent to landfills or other waste treatment centers is reusedbull Wastewater is entirely recycled within the production process without any discharge into the municipal drainsbull The material in the collection bags from the tile body and glaze preparation areas the press and glaze application is entirely recycled within the processbull All scrap fired tiles are entirely recycled within the processbull 157000 kg of cardboard was sold to an external recycled material dealerbull 17 trucks of unusable wooden pallets were sold to a pallet regeneration companybull About 9300 kg of waste shrink-wrap plastic film was recovered and recycled
Post-consumer recycled material
About 82000 kg of glass was removed from the flow of waste destined for the local landfill and recycled within the process Florim USA has signed an agreement with the local landfill for consignment of all the glass it handles which is collected and set aside for recycling
Water use disposal and reuse
The water used during the production process is recycled continually therefore no water is discharged into the municipal drains
The 2016 emissions figures are in line with those for previous years well below the standards laid down
Water use 2012 2013 2014 2015 2016
Water use (gallons per million square feet of finished tiles) 216246 204962 195280 194268 203928
2016 Sustainability Report40
Social Responsibility
Employees
The Florim USA workforce comprises 348 staff employed at the production site the Clarksville and Nashville outlet stores and the Florim Solution offices Of the 348 employees 273 are blue-collar workers and 75 office staff 5 employees are Italians on secondment to the United States Florim USA offers a number of benefits to full time employeesbull health and dental care insurancebull Vision insurancebull life insurance for employees and optionally for family membersbull temporary and permanent disability supportbull employee pension plan
2012 2013 2014 2015 2016
Workplace injuries 50 41 22 29 27
The Employee Assistance Program (EAP) also offers support to employees and their families in the event of psychological difficulty or other problems that can have a negative impact on their quality of life Florim USA supports all the costs of the program
Equal opportunities
Florim USA provides equal opportunities in all employment practices to all qualified employees and applicants regardless of race colour religion gender national origin age disability or membership of the armed forces or any other category protected by federal state or local laws
Health and safety
FLORIM USA is committed to ensuring a safe healthy workplace for all employees It therefore replaces old and obsolete equipment with new technologically more modern machinery and updates safety plans as new information gradually becomes availableAs well as an internal supervisor Florim USA has also appointed a health and safety committee which constantly monitors the plans effectiveness and makes any changes requiredThere are currently 20 plant employees who hold CPRfirst aid qualifications They occupy a variety of positions and work different shifts within the plant and have volunteered to attend training courses sponsored by the company for the award of these qualifications
Training
In 2016 every Florim USA employee attended an average of about 25 hours of training The training provided covered the operating procedures for the new equipment the main safety plans and the procedures for use of existing equipment for new employeesAll new staff undergo specific training for their department focusing on the safety-related aspects of the department concerned as well as more generalized safety training
Some of these themes includebull safe correct use of forklift trucksbull training on work in confined spacesbull shutdownwarning procedures and safe electrical practicesbull safe lifting procedures
2016 Sustainability Report 41
Florim USA ndash (Clarksville Tennessee)
For employees wishing to continue their education Florim USA offers assistance through the Educational Assistance Program It provides aid with the cost of education and textbooks and is available for any employee wishing to study for a technical qualification a diploma or a degreeThe plant staff training and education plan also includes various training schemes at Florim Italy where employees are instructed in the use of new equipment before it is installed at the American plantThroughout 2016 Florim USA will continue to provide a free e-learning course on its website for architects engineers and contractors (AEC) to improve their knowledge of sustainable porcelain stoneware tiles
Employee welfare activities
Florim USA employee picnic - In 2016 the company once again held its annual picnic for employees offering them a wide variety of foods games activities and live shows in an event which provided an unforgettable days enjoyment Within the event participants received prizes in the form of vouchers and gifts
Employee anniversary dinner - 2016 again saw the usual dinner to honour Florim USA employees with 5 10 15 20 or more years of service A special evening event was held in the presence of the Chairman and the other managers to celebrate the loyalty and hard work these employees have contributed during their careers with the firm
2016 Sustainability Report42
Local Community
During 2016 Florim USA continued to provide its support to a number of projects in its local areaSome of the main projects include
Scholarships - As part of its work to support the local community Florim has an established scheme which awards scholarships to deserving students at the Austin Peay State University in memory of Florim Group founder Giovanni Lucchese In December 2016 a delegation of Florim representatives attended a scholarship presentation lunch at the Austin Peay State University hosted by the President of the University
Montgomery County Green Certification Program - Florim USA staff actively participate in the Montgomery County Green Certification Program which aims to help companies learn and implement best practices with regard to safeguarding the environment and environmental resources
Donations - In 2016 the company again made a large number of donationsbull book collection for the Austin Peay State University Employees made a generous donation of used books in good condition for children and young people of the APSU in the hope of further promoting the education of future generationsbull to Community Cares the national organization that promotes the acceptance and social inclusion of individuals with Downs Syndromebull to the Aspire Clarksville Foundation a 501(c)(3) charitable foundation whose mission is to continuously improve the economy and the livability (quality of life) of the community by attracting significant capital investment and expansion by businesses and corporations thereby creating better opportunities and higher paying jobs for residentsbull to the Alzheimerrsquos Association a non-profit voluntary organization dedicated to the care and support of Alzheimers Disease sufferers and research into the condition Its aim is to eliminate the disease through the advancement of research to provide and enhance care and support for all affected and to reduce the risk of dementia through the promotion of brain health
Other activities - Every year Florim USA participates in the United Way Drive initiative to support local non-profit organizations which provide economic assistance and psychological support to persons in difficulty
Florim USA provides regular support to the Salvation Army by collecting canned foods for persons in needIn 2016 the company again organised a canned food collection for Manna Cafeacute in Clarksville TN Manna Cafeacute is a local non-profit organization based in Middle Tennessee with the primary mission of meeting peoples fundamental need for food before encouraging them to permanently change their lives for the better More than 15 of the population in Montgomery County are affected by food insecurity (about 28000 people) The percentage of children affected is about 215 a third of whom are excluded by income from federal programs such as free school mealsFinally donations were made tobull American Lung Association the leading organization working to save lives by improving lung health and preventing lung disease through research and educationbull Cheer for a Cure an organization that gives money directly to afflicting families who have a loved one suffering from cancer and need assistance to alleviate the added financial stressbull Habitat for Humanity Since 1992 Habitat for Humanity in Montgomery County Tennessee has worked with 93 low-income families with more than 210 children to revitalise various parts of Clarksville-Montgomery County by building new homes
2016 Sustainability Report 43
Quality SystemFlorim USA works under a Quality System certified to UNI EN ISO 9001 standards The following are some of the figures in brief
Objective Indicator 2012 2013 2014 2015 2016
Optimisation of control of the production process
Percentage of First Grade Product ()
932 917 940 949 9510
Quality rate () 883 857 893 906 909
Scrap rate () 56 65 48 45 45
KeyPercentage of first grade product ratio between square feet of first grade material and total square feet transferred to stockQuality rate ratio between square feet of first grade material transferred to stock and square feet pressedScrap rate ratio between square feet pressed and square feet of product actually transferred to stock
Other ActivitiesFlorim USA and trade shows
In 2016 Florim USA participated at a number of shows and events including Coverings the AIA Tennessee Convention Hardscape North America Total Solutions Plus Neocon International Pool - Spa and Patio Expo These events targeted at the various categories of industry professionals such as dealers and designers gave Florim USA the opportunity to present its new range of indoor and outdoor products
Design Center
In December 2015 Florim USA opened a design center showroom in Nashville (TN) in a strategic location close to the airport and the city center With a spacious area to host individual CEU presentations and workshops this design center has the potential to be a major resource for local architects In 2016 it was also awarded the ldquoOutstanding Boothrdquo booth prize at the 33rd edition of the Annual Home Decorating and Remodeling Show The location is the ideal place for sharing ideas finding inspiration and putting professionals and architects in touch with each other
Florim Nashville Design Center
2016 Sustainability Report44
GRI International Sustainability Indicators SDGsThe information below illustrates the correspondence between the Florim (Italian companies) 2016 Sustainability Report the GRI-G4 guidelines and the icons of the Sustainable Development Goals (SDGs) definitively adopted by the United NationsA description of the SDGs is available at wwwglobalcompactnetworkorg
GRI indicators
Description Page Reference to SDGs
1 Strategy and Analysis
G4-1 Statement from the most senior decision-maker of the organization 5
2 Organization profile
G4-3 Name of the organization 2
G4-4 Primary brands products andor services 9
G4-5 Location of the organizations headquarters 9
G4-6 Number and names of the countries where the organization operates 9
G4-7 Nature of ownership and legal form 14
G4-8 Markets served 9
G4-9 Scale of the organization 8 8
G4-10 Significant changes regarding size structure or ownership 8
G4-11 Employees covered by National Collective Bargaining Agreement 27
G4-12 Describe the supply chain 16
G4-13Significant changes regarding the organizationrsquos size structure ownership or its supply chain
Reporting process
launched
G4-14 Precautionary principle 22
G4-15 List of external commitments in which the company is involved 22 32 33
G4-16 Associations or interest groups in which the company is involvedwwwflorimit gt
about us gt partnerships
3 Identified material aspects and boundaries
G4-18 Process used to define the report content 6
G4-19 Material aspects 16
G4-20 Boundaries of each material aspect 6
G4-21 Boundaries of each material aspect outside the organizationPartial reporting
(pages 6 16)
G4-22 Explanation of the effect of any restatements of information provided in previous reports 6
G4-23Significant changes from previous reporting periods in the scope boundaries or measurement methods
6
3 Stakeholder engagement
G4-24 List of stakeholders 15
G4-25 Identification of stakeholders 15
G4-26 Stakeholder engagement 6 16
G4-27 Key topics and concerns that have been raised through stakeholder engagement 16
4 Boundary of the Report
G4-28 Reporting period 6
G4-29 Date of publication 2
G4-30 Reporting cycle 6
G4-31 Contacts and addresses for additional information 46
5 GRI Content Index
G4-32 Reporting option chosen 6 7
G4-33 External assurance of ReportThe Report is not
externally assured
2016 Sustainability Report 45
GRI indicators
Description Page Reference to SDGs
6 Governance
G4-34 Governance structure 14
7 Ethics and integrity
G4-56 Values principles standards and norms of behavior 13 16
Economic performance indicators
EC1 Direct economic value generated and distributed 19 25789
EC5 Wages 27 158
EC7 Development and impact of infrastructure investments and services supported 23 24 31 257911
Environmental performance indicators
G4-EN2 Percentage of materials used that are recycled input materials 17 22 23 812
G4-EN3 Energy consumption within the organization 24 781213
G4-EN6 Reduction of energy consumption 17 24 71213
G4-EN7 Reductions in energy requirements of products and servicesPartial reporting
(page 22)71213
G4-EN8 Total water withdrawal by source 17 23 6
G4-EN10 Percentage and total volume of water recycled and reused 17 21 23 612
G4-EN11 Biodiversity 23 615
G4-EN15 Total indirect greenhouse gas emissions by weight 25 3121315
G4-EN16 Total indirect greenhouse gas emissions by weight 25 3121315
G4-EN19 Reduction of greenhouse gas emissions 8 24 1315
G4-EN21 NOx SOx and other significant air emissions 25 31215
G4-EN22 Total water discharge by quality and destination 23 6
G4-EN23 Total weight of waste by type 17 22 3612
G4-EN27 Impact mitigation of environmental impacts of products and services 23 68121315
G4-EN29 Monetary value of significant fines 22 16
G4-EN30 Significant environmental impacts of transporting products and goodsmaterialsPartial reporting
(page 25)111213
Social performance indicators
G4-LA1 Total number and rates of new employee hires and employee turnoverPartial reporting
(pages 17 27)8
G4-LA6 Workplace injury ratesPartial reporting
(page 17)38
G4-LA9 Average hours of training per year per employee 28 48
G4-LA12Composition of governance bodies and breakdown of employees according to gender age group etc
27 58
G4-LA13 Ratio of basic salary and total remuneration of women to men 27 5810
Society
G4-SO1 Operations with local community engagement 12 31 16
G4-SO3 Operations assessed for risks related to corruptionPartial reporting
(page 13)
Product responsibility
G4-PR1 Assessment of health and safety impacts for improvement 23 32
G4-PR3 Type of information about products and services required by the procedures 32 12
G4-PR5 Proceedings relating to customer satisfaction including surveys conducted to measure it 33
G4-PR6 Sale of banned or disputed products 32
G4-PR8 Number of substantiated complaints regarding breaches of privacy 32 16
2016 Sustainability Report46
Your Assessment
You are kindly requested to take a few minutes of your time to give us your assessment and any suggestions to enable us to improve future editions of our Sustainability Report
Click here to send us your feedback
To keep up to date with our business
Spazio CEDIT - interior (Milan)
wwwflorimiten
Florim Ceramiche
Florim4Architects
Florim_ceramiche
Florim Ceramiche spa
Florim Ceramiche
Florim Ceramiche
For any further information please feel free to contact our communications department comunicazioneflorimit
2016 Sustainability Report 47
Premio Lucchese - Florim Gallery (Fiorano Modenese - Modena Italy)
Intrapresaelig Guggenheim Collection - Massimo Bottura in Florim Gallery (Fiorano Modenese - Modena Italy)
Panathlon Christmas Gala - Florim Gallery (Fiorano Modenese - Modena Italy)
2016 Sustainability Report48
White Christmas Party - Florim Gallery (Fiorano Modenese - Modena Italy)
Cersaie - Mario Biondi in Florim Gallery (Fiorano Modenese - Modena Italy)
Dal buio alla luce - Social event at Florim Gallery (Fiorano Modenese - Modena Italy)
2016 Sustainability Report 49
Florim Gallery entrance (Fiorano Modenese - MO)
2016 Sustainability Report52
Florim Ceramiche spaVia Canaletto 24 - 41042 Fiorano Modenese (Modena Italy) - Tel +39 0536 840111 - wwwflorimit
2016 Sustainability Report30
Local Community amp Culture
This chapter describes a number of programs Florim runs for the local community in the area where it originated and where it has been working for more than 50 years
Politecnico di Milano
Since the 20052006 academic year Florim has been a partner sponsor of a large number of Postgraduate Courses run by POLIDesign the Politecnico di Milano consortium which organizes its Master Degree coursesAlso in association with POLIDesign since 2012 Florims Milan showroom has hosted several design events for architects and designers of every nationality
Aziende modenesi per la RSI
ldquoAziende Modenesi per la RSIrdquo an independent open inclusive association of companies in the Modena area which believe in the principles and values of Corporate Social Responsibility was established by public deed on 30 September 2014 with Florim as a founding member Florim hosts the associations member companies every year to discuss the various topics proposed
Premio Lucchese
The Premio Lucchese presented for the twenty-ninth time in 2016 was established in memory of Giovanni Lucchese and consists of scholarships awarded to students at the ldquoAlessandro Voltardquo Technical High School in Sassuolo who graduate with full marks The award ceremony held every year at the Florim Gallery in association with Societagrave Ceramica Italiana of Bologna includes a talk given by a leading personality on a topic of current interest to an audience of eager young listeners
Intrapresaelig Collezione Guggenheim
As befits a company that combines the values of its local community and historic and artistic heritage with a flair for research and innovation Florim recently launched a partnership with the Peggy Guggenheim Collection Since its foundation Florim has always had a unique ability to incorporate the true cultural significance of its industry in its business model and by this project once again confirms its commitment to promoting art by supporting a collection of extraordinary beauty
Fondazione Ing Giovanni Lucchese
More than thirty years after the untimely death of Giovanni Lucchese ndash founder of what was then Floor Gres currently Florim ndash in 2013 his family established a Foundation in his name which since then has funded organizations and associations that support families in need in the ceramics district The Foundation also supports a variety of projects such as the summer play scheme for employees children the Premio Lucchese and the Florim HealthampTraining Center described in more detail below
The main projects undertaken in 2016 include the funding of the purchase of 10 defibrillators for the Municipality of Fiorano and the contributions made to the purchase of paediatric ambulances for the local area and to support the Parish charitable organizations and social services in the district
Watch the Premio Lucchese video
The project run jointly by Florim and Sassuolo Hospital adopts a completely new model combining industrial culture and healthcare in an original way to benefit the local people and community thanks to the coming-together of a ceramic coverings manufacturer and the public-private joint venture Ospedale di Sassuolo Spa Florim HealthampTraining is the synthesis of this idea an experimental center which promotes local training for healthcare and other staff health education and information advanced medical simulation and research
The Center
On the main Florim site and opened on 16 April 2014 the Center is 550 square meters in area and contains a modular lecture theatre able to seat over 100 people and a number of classrooms for seminars and lessons At its heart is a state-of-the-art control room crammed with technology that operates dummies capable of reproducing human functions of all kinds Advanced simulation is a major aid to maintaining the skills of emergency healthcare workers with a particular focus on pediatric and neonatal resuscitation
Health meetings
Designed as a space for community use the Center also aims to become a place where all sections of the population - workers schoolchildren parents teachers volunteers and even just members of the public - can learn about preventive health care and acquire first aid skills After the distribution to Florim employees of a questionnaire surveying their training needs and preferences a Center Scientific Committee of Sassuolo Hospital medical personnel was appointed and drew up a plan of bi-monthly ldquoHealth meetingsrdquo All meetings are led by doctors with expertise in the various topics who answer the many questions from the audience at the end of their talks Between its opening and the end of December 2016 the Center hosted 13 meetings on a variety of topics attended by about 1000 people including employees their family members and the community at large
Healthcare discounts for Florim employees
The project also includes a major welfare program for all Florim employees and their family members entitling them to discounts and shorter waiting times for specialist examinations and outpatient diagnostic tests performed on a private basis
American Heart Association
The world-famous American Heart Association (AHA) is the oldest and most respected American voluntary organization dedicated to the fight against cardiovascular diseases and strokes In 2015 the AHA via the Simaid International Training Center named the Florim HealthampTraining Center as an Authorized Training Site for basic and advanced cardiopulmonary resuscitation
Florim HealthampTraining Center
2016 Sustainability Report
Watch the Health amp Training Center video
2016 Sustainability Report32
Product Responsibility
Here we summarize the concept of Made in Florim denoting a product that encapsulates the companys core values passion innovation a constant commitment to improvement and corporate social responsibility
Florim product certifications
CE Marking guarantees the user that the materials purchased meet the requirements of the relevant regulations and that the characteristics concerned are virtually unchanged for all production lots It is a declaration of conformity which protects the consumerrsquos safety The presence of the CE Marking on packaging guarantees that Florim products comply with the relevant regulatory requirements
Ecolabel (EC Regulation 662010) is a certification granted to products which comply with ecological and performance criteria set at a European level concerning raw material extraction supplier selection manufacturing processes packaging distribution use and disposal The certified Florim collections are Architech Ecotech Reverse Walks 10 by Floor Gres and Pietra del Nord under the Rex brand
Several ceramic tile collections bearing the Florim brands have earned certification from Bureau Veritas for their pre-consumer recycled material content These articles are therefore fully eco-compatible and can meet the environmental sustainability requirements imposed by many international certifications
Florim is a member of the US Green Building Council (USGBC) the most important association which promotes the reduction of buildings negative impact on the environment To allow the effective monitoring a projects level of sustainability the USGBC has developed a certification procedure for the development of sustainable buildings which assess and certifies the sustainability of a building in its entirety Florim materials are able to help to gain LEED points in a number of areas (data available on the Florim brand websites)
Florim has achieved the prestigious Greenguard certification for all its products Issued by the American body UL Environment this certification aims to reduce indoor pollution caused by interior design systems and materials UL Environment thus aims to protect health by improving air quality and reducing peoples exposure to chemicals and other pollutants Florim has also achieved Greenguard Gold Certification which imposes even stricter limits to confirm that a given product is suitable for use even in locations such as schools and health care facilities
The EPD or Environmental Product Declaration is a document which defines the environmental impacts arising from production In 2016 Florim participated in the study - certified by the German organization IBU - performed on the ceramics industry average data which aims to raise international awareness of the excellence of the environmental standards achieved
Beyond the standardsMade in Florim products are a guarantee of safety highly innovative content and eco-friendliness The people who produce them work in a safe place and in ethically sustainable conditions Due to their nature all Florim products are guaranteed free from pollutant emissions do not accumulate electrostatic charges are frostproof and completely inert and are undamaged by contact with flames The Groups Internet sites and collection catalogues contain the technical data sheets which detail the product information (slip-resistance breaking strain abrasion resistance etc) for every collection as well as its recycled material content with the relative certificates
During the period under consideration no banned products were placed on the market and the company was not found guilty of any breaches of the law with regard to data protection or its marketing and communication activities
EU Ecolabel nr IT2104
2016 Sustainability Report 33
Quality SystemThe current ISO 9001 standards define quality as the ability to satisfy explicit or implicit needs via a product or a service A Quality System implies constant improvement of company processes in order to realise products that always satisfy the customerrsquos needs Further to the 2016 audit Florim obtained the renewal of its UNI EN ISO 90012015 certification for the design manufacture and sale of all categories of ceramic tile
Objective Indicator 2012 2013 2014 2015 2016
Continual improvement of control of the production process
Percentage of First Grade Product ()
924 943 942 952 956
Quality rate () 883 905 903 905 909
Scrap rate () 44 41 42 42 49
Productivity (sq mhour) 186 188 186 190 200
Improvements in sales performance and customer satisfaction
Innovation rate () 330 296 367 455 364
Coverage () 795 714 814 813 816
Total portfolio shippable within one month ()
911 837 888 893 897
Optimization of range and stocks
Obsolete stock () 172 126 165 120 69
Stock turnover rate () 13 15 16 15 16
Gradual elimination of disputes complaints and claims concerning service
Square meters affected by complaints ()
17 12 08 12 09
Complaints by number of order items ()
10 11 11 10 10
Gradual improvement in staff skill levels
Employee turnover () 15 23 04 04 12
KeyPercentage of first grade product percentage ratio between the square meters of first grade products and the total square meters transferred to stockQuality rate percentage ratio between the square meters of first grade product transferred to stock and the square meters leaving the pressesScrap rate percentage difference between square meters of material leaving the presses and square meters of product actually transferred to stockProductivity ratio between the square meters transferred to stock and the total hours worked in the plantInnovation rate ratio between square meters sold belonging to series designed in the last three years and total square meters sold Florim uses this indicator to assess the effectiveness of its design process in terms of salesCoverage percentage ratio between square meters available for immediate shipment and the square meters on orderTotal portfolio of orders shippable within one month percentage ratio between the square meters which can be shipped in 30 days and the square meters on orderObsolete stock percentage ratio between the square meters of substandard discontinued produce and the total square meters in stock Stock turnover rate ratio between the square meters sold and the square meters in stockSquare meters affected by complaints percentage ratio between the square meters affected by complaints and the square meters soldComplaints by number of order items percentage ratio between the number of complaints and the number of items orderedEmployee turnover percentage ratio between the number of employees leaving the company and being replaced and the workforce at the start of the year
2016 Sustainability Report34
Casamood - Neutra 60 Collection
2016 Sustainability Report 35
OUR COMMITMENTS
The promises we keptIn our last Sustainability Report we committed to achieving a large number of objectives the following are the outcomes we attained
Relaunch of the ldquoCEDIT ndash Ceramiche drsquoItaliardquo brand OBJECTIVE ACHIEVED
Launch of the FLORIM stone brand OBJECTIVE ACHIEVED
Installation of a new latest-generation kiln at the Mordano plant OBJECTIVE ACHIEVED
Transfer of the Moscow showroom to new premises SCHEDULED FOR 2017
Creation of a new gatehouse at the Mordano plantOBJECTIVE POSTPONED TO GIVE PRIORITY TO THE CONSTRUCTION OF THE NEW FACTORY
Introduction of ERP system at Florim USA OBJECTIVE ACHIEVED
Installation of a new spray dryer and raw material handling system at Florim USA
OBJECTIVE ACHIEVED
Economic Responsibility
Renewal of certification of the Florim environmental and energy management system
OBJECTIVE ACHIEVED
Award of new certifications for collections manufactured with a high recycled material content
OBJECTIVE ACHIEVED
Continuation of work to reduce environmental impacts at Mordano especially with the reduction of energy costs
OBJECTIVE ACHIEVED
Continuation of the work to remove asbestos cement roofing materials at the Mordano plant
OBJECTIVE ACHIEVED
Expansion of the system which conveys rainwater to the treatment plant OBJECTIVE ACHIEVED
Reduction of the noise emissions of the air filtering systems OBJECTIVE ACHIEVED
Increase of recycling targets through constant awareness-raising amongst all staff and optimisation of recycling facilities
OBJECTIVE ACHIEVED
Continuation of replacement of the diesel forklift trucks for use on outdoor yards with electric vehicles
OBJECTIVE ACHIEVED
Environmental Responsibility
Running of fourth edition of Master Florim course with new procedures OBJECTIVE ACHIEVED
Creation of an internal refreshment area for the Fiorano office staff OBJECTIVE ACHIEVED
Improvement of corporate welfare through the activation of new free services and discounts tailored to employees needs
OBJECTIVE ACHIEVED
Continuation of the health meetings for the local community in association with Ospedale di Sassuolo Spa
OBJECTIVE ACHIEVED
Organization of new community events at Florim Gallery OBJECTIVE ACHIEVED
Organization of Florim Family Day 2016 A PARTY WAS ORGANISED FOR EMPLOYEES
Social Responsibility
2016 Sustainability Report36
The targets we set for ourselvesWe aim to achieve the following objectives in 2017
Economic Responsibility
Construction of a new factory at Mordano to produce large slabs
Launch of the project to unite the Florim spa sales organizations
Total restyling of the corporate and brand Internet sites
Launch of the HUB project - Intranet CRM Marketing Automation
New plants at Florim USA a press two sorting lines a polishing and rectifying line
New working spaces and cloakrooms for technical staff at the American plant
Environmental Responsibility
Purchase of a new cogenerator for the Mordano plant
Introduction of a new rainwater collection system at Fiorano
Land reclamation project involving covering of the Rio Spezzano stream at Fiorano
Implementation of new software for continual monitoring of energy impacts at Fiorano
Modernisation of the compressor room to improve energy impacts at Mordano
Increase of recycling targets through constant awareness-raising amongst all staff and optimisation of recycling facilities
Continuation of replacement of the diesel forklift trucks for use on outdoor yards with electric vehicles
Social Responsibility
Improvement of corporate welfare through the activation of new free services and discounts tailored to employees needs
Continuation of the health meetings for the local community in association with Ospedale di Sassuolo Spa
Organization of new community events at Florim Gallery
Organization of a new event for Florim spa employees
New offices for hospitality and events staff at Fiorano
2016 Sustainability Report 37
FLORIM USA
Profile and Economic ResponsibilityFlorim USA with registered office at Clarksville - Tennessee - and its subsidiary Florim Solution Inc have been part of the Florim Group since 2000 The Florim USA manufacturing plant one of the largest most technologically advanced in the United States produces porcelain stoneware tiles for the residential market and undertakes commercial projects in North America During the last few years Florim USA has implemented a growth and process optimization strategy which has generated significant technological progress with more innovations planned for the future The strategy adopted will put Florim USA at the worldwide state of the art in porcelain stoneware tile manufacture
In 2016 of the 18 million USD invested 147 was allocated for installation of a latest-generation raw material handling system and a large spray-dryer with an innovative sorting system Improvements were made to other parts of the process to increase their efficiency leading to a further reduction in emissions and scrap rates Additional investments are planned during 2017 to continue this dual trend of rising production with mitigation of environmental impact
The new Florim Flagship Store in New York (152 Madison Avenue 32nd Street)
2016 Sustainability Report38
Environmental ResponsibilityFlorim USA implements the same environmental policy as Florim and is committed to achieving the following objectives
bull reduction of the energy used in the production processbull improvement of the waste management process with a focus on recovery and reusebull introduction of new more eco-efficient technologiesbull adoption of integrated management systems
Florim USA has been pursuing a strategy of careful management of its operations and environmental impact for a number of years Here we summarise the main actions taken and the results achieved in 2016
bull installation of a latest-generation spray-dryer in 2016bull installation of an innovative raw material handling system in 2016bull 100 recycling of wastewater within the processbull optimisation of the management of water bottles with elimination of about 34200 of them per annumbull reuse of almost all production scrap (+99)bull 157000 kg of cardboard recycled in 2016bull award of two different types of product certificationbull 9300 kg of plastic recycledbull recycling of 17 complete trucks of pallets
Environmental Projects and Awards
Florim USA has received Clarksville Montgomery County Green Certification (CMCGC) CMCGC is a program designed to help companies learn and implement best practices in the area of environmental stewardship to sustain the local communityrsquos resources through a series of free workshops taught by local environmental specialists Since 2014 Florim has allocated some of its Environment Managers time for the running of these workshopsFlorim USA earned this green company certification thanks to a large number of projects first and foremost the one which eliminated the use of disposable water bottles replaced with individual reusable bottles provided by the company and a series of fill-up stations About 34200 bottles are removed from the waste cycle every year
During the latest phase of its plant optimization Florim USA has implemented a thorough construction material reuse policy In the various stages of demolition of the old plants including the old storage silos the concrete debris was recovered and reused in other construction worksThis project alone generated 11500 tons of recycled aggregate as well as several hundred tonnes of metal sold to a recycling firm
Environmental management system and eco-compatible products
Florim USArsquos products help builders and designers to meet the requirements for sustainable buildings as defined by the United States Green Building Council (USGBC) through the LEED Green Building Rating System This protocol evaluates and certifies the environmental sustainability of a building as a unit from its design to its day to day management To gain LEED credits many of the Florim USA product lines contain a significant percentage of recycled material (40 or more)This feature contributes to an increase in the LEED score in the projects where these products are installed In 2014 Florim USA together with a large number of other US tile manufacturers and the Tile Council of North America drew up a type III environmental product declaration (EPD) certified under the ISO 14025 standard This ceramic tile life-cycle analysis enables Florim USA products to gain LEED points under the new LEED v4 protocol
2016 Sustainability Report 39
Water use (gallonsper million square feetof finished tiles)
208137 216246 204962 195280 194268
Energy use
2012 2013 2014 2015 2016
Cubic feet of natural gas per million square feet of finished tiles 9343383 9149721 8331170 8390503 8380000
kWh per million square feet of finished tiles 510972 491171 450594 465976 490300
Emissions
Particulate material lt 21024 tonnes per annum
SO2 (sulphur dioxide) lt 1674 tonnes per annum
VOC (volatile organic compounds) lt 1245 tonnes per annum
NOx (oxides of nitrogen) lt 1501 tonnes per annum
Environmental performance indicators ndash summary
The following are the main environmental indicators related to the impact and performance of Florim USA during 2016
Pre-consumer recycled material
Its internal material recycling processes enable the company to minimise its environmental impact since most of the material which would otherwise be sent to landfills or other waste treatment centers is reusedbull Wastewater is entirely recycled within the production process without any discharge into the municipal drainsbull The material in the collection bags from the tile body and glaze preparation areas the press and glaze application is entirely recycled within the processbull All scrap fired tiles are entirely recycled within the processbull 157000 kg of cardboard was sold to an external recycled material dealerbull 17 trucks of unusable wooden pallets were sold to a pallet regeneration companybull About 9300 kg of waste shrink-wrap plastic film was recovered and recycled
Post-consumer recycled material
About 82000 kg of glass was removed from the flow of waste destined for the local landfill and recycled within the process Florim USA has signed an agreement with the local landfill for consignment of all the glass it handles which is collected and set aside for recycling
Water use disposal and reuse
The water used during the production process is recycled continually therefore no water is discharged into the municipal drains
The 2016 emissions figures are in line with those for previous years well below the standards laid down
Water use 2012 2013 2014 2015 2016
Water use (gallons per million square feet of finished tiles) 216246 204962 195280 194268 203928
2016 Sustainability Report40
Social Responsibility
Employees
The Florim USA workforce comprises 348 staff employed at the production site the Clarksville and Nashville outlet stores and the Florim Solution offices Of the 348 employees 273 are blue-collar workers and 75 office staff 5 employees are Italians on secondment to the United States Florim USA offers a number of benefits to full time employeesbull health and dental care insurancebull Vision insurancebull life insurance for employees and optionally for family membersbull temporary and permanent disability supportbull employee pension plan
2012 2013 2014 2015 2016
Workplace injuries 50 41 22 29 27
The Employee Assistance Program (EAP) also offers support to employees and their families in the event of psychological difficulty or other problems that can have a negative impact on their quality of life Florim USA supports all the costs of the program
Equal opportunities
Florim USA provides equal opportunities in all employment practices to all qualified employees and applicants regardless of race colour religion gender national origin age disability or membership of the armed forces or any other category protected by federal state or local laws
Health and safety
FLORIM USA is committed to ensuring a safe healthy workplace for all employees It therefore replaces old and obsolete equipment with new technologically more modern machinery and updates safety plans as new information gradually becomes availableAs well as an internal supervisor Florim USA has also appointed a health and safety committee which constantly monitors the plans effectiveness and makes any changes requiredThere are currently 20 plant employees who hold CPRfirst aid qualifications They occupy a variety of positions and work different shifts within the plant and have volunteered to attend training courses sponsored by the company for the award of these qualifications
Training
In 2016 every Florim USA employee attended an average of about 25 hours of training The training provided covered the operating procedures for the new equipment the main safety plans and the procedures for use of existing equipment for new employeesAll new staff undergo specific training for their department focusing on the safety-related aspects of the department concerned as well as more generalized safety training
Some of these themes includebull safe correct use of forklift trucksbull training on work in confined spacesbull shutdownwarning procedures and safe electrical practicesbull safe lifting procedures
2016 Sustainability Report 41
Florim USA ndash (Clarksville Tennessee)
For employees wishing to continue their education Florim USA offers assistance through the Educational Assistance Program It provides aid with the cost of education and textbooks and is available for any employee wishing to study for a technical qualification a diploma or a degreeThe plant staff training and education plan also includes various training schemes at Florim Italy where employees are instructed in the use of new equipment before it is installed at the American plantThroughout 2016 Florim USA will continue to provide a free e-learning course on its website for architects engineers and contractors (AEC) to improve their knowledge of sustainable porcelain stoneware tiles
Employee welfare activities
Florim USA employee picnic - In 2016 the company once again held its annual picnic for employees offering them a wide variety of foods games activities and live shows in an event which provided an unforgettable days enjoyment Within the event participants received prizes in the form of vouchers and gifts
Employee anniversary dinner - 2016 again saw the usual dinner to honour Florim USA employees with 5 10 15 20 or more years of service A special evening event was held in the presence of the Chairman and the other managers to celebrate the loyalty and hard work these employees have contributed during their careers with the firm
2016 Sustainability Report42
Local Community
During 2016 Florim USA continued to provide its support to a number of projects in its local areaSome of the main projects include
Scholarships - As part of its work to support the local community Florim has an established scheme which awards scholarships to deserving students at the Austin Peay State University in memory of Florim Group founder Giovanni Lucchese In December 2016 a delegation of Florim representatives attended a scholarship presentation lunch at the Austin Peay State University hosted by the President of the University
Montgomery County Green Certification Program - Florim USA staff actively participate in the Montgomery County Green Certification Program which aims to help companies learn and implement best practices with regard to safeguarding the environment and environmental resources
Donations - In 2016 the company again made a large number of donationsbull book collection for the Austin Peay State University Employees made a generous donation of used books in good condition for children and young people of the APSU in the hope of further promoting the education of future generationsbull to Community Cares the national organization that promotes the acceptance and social inclusion of individuals with Downs Syndromebull to the Aspire Clarksville Foundation a 501(c)(3) charitable foundation whose mission is to continuously improve the economy and the livability (quality of life) of the community by attracting significant capital investment and expansion by businesses and corporations thereby creating better opportunities and higher paying jobs for residentsbull to the Alzheimerrsquos Association a non-profit voluntary organization dedicated to the care and support of Alzheimers Disease sufferers and research into the condition Its aim is to eliminate the disease through the advancement of research to provide and enhance care and support for all affected and to reduce the risk of dementia through the promotion of brain health
Other activities - Every year Florim USA participates in the United Way Drive initiative to support local non-profit organizations which provide economic assistance and psychological support to persons in difficulty
Florim USA provides regular support to the Salvation Army by collecting canned foods for persons in needIn 2016 the company again organised a canned food collection for Manna Cafeacute in Clarksville TN Manna Cafeacute is a local non-profit organization based in Middle Tennessee with the primary mission of meeting peoples fundamental need for food before encouraging them to permanently change their lives for the better More than 15 of the population in Montgomery County are affected by food insecurity (about 28000 people) The percentage of children affected is about 215 a third of whom are excluded by income from federal programs such as free school mealsFinally donations were made tobull American Lung Association the leading organization working to save lives by improving lung health and preventing lung disease through research and educationbull Cheer for a Cure an organization that gives money directly to afflicting families who have a loved one suffering from cancer and need assistance to alleviate the added financial stressbull Habitat for Humanity Since 1992 Habitat for Humanity in Montgomery County Tennessee has worked with 93 low-income families with more than 210 children to revitalise various parts of Clarksville-Montgomery County by building new homes
2016 Sustainability Report 43
Quality SystemFlorim USA works under a Quality System certified to UNI EN ISO 9001 standards The following are some of the figures in brief
Objective Indicator 2012 2013 2014 2015 2016
Optimisation of control of the production process
Percentage of First Grade Product ()
932 917 940 949 9510
Quality rate () 883 857 893 906 909
Scrap rate () 56 65 48 45 45
KeyPercentage of first grade product ratio between square feet of first grade material and total square feet transferred to stockQuality rate ratio between square feet of first grade material transferred to stock and square feet pressedScrap rate ratio between square feet pressed and square feet of product actually transferred to stock
Other ActivitiesFlorim USA and trade shows
In 2016 Florim USA participated at a number of shows and events including Coverings the AIA Tennessee Convention Hardscape North America Total Solutions Plus Neocon International Pool - Spa and Patio Expo These events targeted at the various categories of industry professionals such as dealers and designers gave Florim USA the opportunity to present its new range of indoor and outdoor products
Design Center
In December 2015 Florim USA opened a design center showroom in Nashville (TN) in a strategic location close to the airport and the city center With a spacious area to host individual CEU presentations and workshops this design center has the potential to be a major resource for local architects In 2016 it was also awarded the ldquoOutstanding Boothrdquo booth prize at the 33rd edition of the Annual Home Decorating and Remodeling Show The location is the ideal place for sharing ideas finding inspiration and putting professionals and architects in touch with each other
Florim Nashville Design Center
2016 Sustainability Report44
GRI International Sustainability Indicators SDGsThe information below illustrates the correspondence between the Florim (Italian companies) 2016 Sustainability Report the GRI-G4 guidelines and the icons of the Sustainable Development Goals (SDGs) definitively adopted by the United NationsA description of the SDGs is available at wwwglobalcompactnetworkorg
GRI indicators
Description Page Reference to SDGs
1 Strategy and Analysis
G4-1 Statement from the most senior decision-maker of the organization 5
2 Organization profile
G4-3 Name of the organization 2
G4-4 Primary brands products andor services 9
G4-5 Location of the organizations headquarters 9
G4-6 Number and names of the countries where the organization operates 9
G4-7 Nature of ownership and legal form 14
G4-8 Markets served 9
G4-9 Scale of the organization 8 8
G4-10 Significant changes regarding size structure or ownership 8
G4-11 Employees covered by National Collective Bargaining Agreement 27
G4-12 Describe the supply chain 16
G4-13Significant changes regarding the organizationrsquos size structure ownership or its supply chain
Reporting process
launched
G4-14 Precautionary principle 22
G4-15 List of external commitments in which the company is involved 22 32 33
G4-16 Associations or interest groups in which the company is involvedwwwflorimit gt
about us gt partnerships
3 Identified material aspects and boundaries
G4-18 Process used to define the report content 6
G4-19 Material aspects 16
G4-20 Boundaries of each material aspect 6
G4-21 Boundaries of each material aspect outside the organizationPartial reporting
(pages 6 16)
G4-22 Explanation of the effect of any restatements of information provided in previous reports 6
G4-23Significant changes from previous reporting periods in the scope boundaries or measurement methods
6
3 Stakeholder engagement
G4-24 List of stakeholders 15
G4-25 Identification of stakeholders 15
G4-26 Stakeholder engagement 6 16
G4-27 Key topics and concerns that have been raised through stakeholder engagement 16
4 Boundary of the Report
G4-28 Reporting period 6
G4-29 Date of publication 2
G4-30 Reporting cycle 6
G4-31 Contacts and addresses for additional information 46
5 GRI Content Index
G4-32 Reporting option chosen 6 7
G4-33 External assurance of ReportThe Report is not
externally assured
2016 Sustainability Report 45
GRI indicators
Description Page Reference to SDGs
6 Governance
G4-34 Governance structure 14
7 Ethics and integrity
G4-56 Values principles standards and norms of behavior 13 16
Economic performance indicators
EC1 Direct economic value generated and distributed 19 25789
EC5 Wages 27 158
EC7 Development and impact of infrastructure investments and services supported 23 24 31 257911
Environmental performance indicators
G4-EN2 Percentage of materials used that are recycled input materials 17 22 23 812
G4-EN3 Energy consumption within the organization 24 781213
G4-EN6 Reduction of energy consumption 17 24 71213
G4-EN7 Reductions in energy requirements of products and servicesPartial reporting
(page 22)71213
G4-EN8 Total water withdrawal by source 17 23 6
G4-EN10 Percentage and total volume of water recycled and reused 17 21 23 612
G4-EN11 Biodiversity 23 615
G4-EN15 Total indirect greenhouse gas emissions by weight 25 3121315
G4-EN16 Total indirect greenhouse gas emissions by weight 25 3121315
G4-EN19 Reduction of greenhouse gas emissions 8 24 1315
G4-EN21 NOx SOx and other significant air emissions 25 31215
G4-EN22 Total water discharge by quality and destination 23 6
G4-EN23 Total weight of waste by type 17 22 3612
G4-EN27 Impact mitigation of environmental impacts of products and services 23 68121315
G4-EN29 Monetary value of significant fines 22 16
G4-EN30 Significant environmental impacts of transporting products and goodsmaterialsPartial reporting
(page 25)111213
Social performance indicators
G4-LA1 Total number and rates of new employee hires and employee turnoverPartial reporting
(pages 17 27)8
G4-LA6 Workplace injury ratesPartial reporting
(page 17)38
G4-LA9 Average hours of training per year per employee 28 48
G4-LA12Composition of governance bodies and breakdown of employees according to gender age group etc
27 58
G4-LA13 Ratio of basic salary and total remuneration of women to men 27 5810
Society
G4-SO1 Operations with local community engagement 12 31 16
G4-SO3 Operations assessed for risks related to corruptionPartial reporting
(page 13)
Product responsibility
G4-PR1 Assessment of health and safety impacts for improvement 23 32
G4-PR3 Type of information about products and services required by the procedures 32 12
G4-PR5 Proceedings relating to customer satisfaction including surveys conducted to measure it 33
G4-PR6 Sale of banned or disputed products 32
G4-PR8 Number of substantiated complaints regarding breaches of privacy 32 16
2016 Sustainability Report46
Your Assessment
You are kindly requested to take a few minutes of your time to give us your assessment and any suggestions to enable us to improve future editions of our Sustainability Report
Click here to send us your feedback
To keep up to date with our business
Spazio CEDIT - interior (Milan)
wwwflorimiten
Florim Ceramiche
Florim4Architects
Florim_ceramiche
Florim Ceramiche spa
Florim Ceramiche
Florim Ceramiche
For any further information please feel free to contact our communications department comunicazioneflorimit
2016 Sustainability Report 47
Premio Lucchese - Florim Gallery (Fiorano Modenese - Modena Italy)
Intrapresaelig Guggenheim Collection - Massimo Bottura in Florim Gallery (Fiorano Modenese - Modena Italy)
Panathlon Christmas Gala - Florim Gallery (Fiorano Modenese - Modena Italy)
2016 Sustainability Report48
White Christmas Party - Florim Gallery (Fiorano Modenese - Modena Italy)
Cersaie - Mario Biondi in Florim Gallery (Fiorano Modenese - Modena Italy)
Dal buio alla luce - Social event at Florim Gallery (Fiorano Modenese - Modena Italy)
2016 Sustainability Report 49
Florim Gallery entrance (Fiorano Modenese - MO)
2016 Sustainability Report52
Florim Ceramiche spaVia Canaletto 24 - 41042 Fiorano Modenese (Modena Italy) - Tel +39 0536 840111 - wwwflorimit
The project run jointly by Florim and Sassuolo Hospital adopts a completely new model combining industrial culture and healthcare in an original way to benefit the local people and community thanks to the coming-together of a ceramic coverings manufacturer and the public-private joint venture Ospedale di Sassuolo Spa Florim HealthampTraining is the synthesis of this idea an experimental center which promotes local training for healthcare and other staff health education and information advanced medical simulation and research
The Center
On the main Florim site and opened on 16 April 2014 the Center is 550 square meters in area and contains a modular lecture theatre able to seat over 100 people and a number of classrooms for seminars and lessons At its heart is a state-of-the-art control room crammed with technology that operates dummies capable of reproducing human functions of all kinds Advanced simulation is a major aid to maintaining the skills of emergency healthcare workers with a particular focus on pediatric and neonatal resuscitation
Health meetings
Designed as a space for community use the Center also aims to become a place where all sections of the population - workers schoolchildren parents teachers volunteers and even just members of the public - can learn about preventive health care and acquire first aid skills After the distribution to Florim employees of a questionnaire surveying their training needs and preferences a Center Scientific Committee of Sassuolo Hospital medical personnel was appointed and drew up a plan of bi-monthly ldquoHealth meetingsrdquo All meetings are led by doctors with expertise in the various topics who answer the many questions from the audience at the end of their talks Between its opening and the end of December 2016 the Center hosted 13 meetings on a variety of topics attended by about 1000 people including employees their family members and the community at large
Healthcare discounts for Florim employees
The project also includes a major welfare program for all Florim employees and their family members entitling them to discounts and shorter waiting times for specialist examinations and outpatient diagnostic tests performed on a private basis
American Heart Association
The world-famous American Heart Association (AHA) is the oldest and most respected American voluntary organization dedicated to the fight against cardiovascular diseases and strokes In 2015 the AHA via the Simaid International Training Center named the Florim HealthampTraining Center as an Authorized Training Site for basic and advanced cardiopulmonary resuscitation
Florim HealthampTraining Center
2016 Sustainability Report
Watch the Health amp Training Center video
2016 Sustainability Report32
Product Responsibility
Here we summarize the concept of Made in Florim denoting a product that encapsulates the companys core values passion innovation a constant commitment to improvement and corporate social responsibility
Florim product certifications
CE Marking guarantees the user that the materials purchased meet the requirements of the relevant regulations and that the characteristics concerned are virtually unchanged for all production lots It is a declaration of conformity which protects the consumerrsquos safety The presence of the CE Marking on packaging guarantees that Florim products comply with the relevant regulatory requirements
Ecolabel (EC Regulation 662010) is a certification granted to products which comply with ecological and performance criteria set at a European level concerning raw material extraction supplier selection manufacturing processes packaging distribution use and disposal The certified Florim collections are Architech Ecotech Reverse Walks 10 by Floor Gres and Pietra del Nord under the Rex brand
Several ceramic tile collections bearing the Florim brands have earned certification from Bureau Veritas for their pre-consumer recycled material content These articles are therefore fully eco-compatible and can meet the environmental sustainability requirements imposed by many international certifications
Florim is a member of the US Green Building Council (USGBC) the most important association which promotes the reduction of buildings negative impact on the environment To allow the effective monitoring a projects level of sustainability the USGBC has developed a certification procedure for the development of sustainable buildings which assess and certifies the sustainability of a building in its entirety Florim materials are able to help to gain LEED points in a number of areas (data available on the Florim brand websites)
Florim has achieved the prestigious Greenguard certification for all its products Issued by the American body UL Environment this certification aims to reduce indoor pollution caused by interior design systems and materials UL Environment thus aims to protect health by improving air quality and reducing peoples exposure to chemicals and other pollutants Florim has also achieved Greenguard Gold Certification which imposes even stricter limits to confirm that a given product is suitable for use even in locations such as schools and health care facilities
The EPD or Environmental Product Declaration is a document which defines the environmental impacts arising from production In 2016 Florim participated in the study - certified by the German organization IBU - performed on the ceramics industry average data which aims to raise international awareness of the excellence of the environmental standards achieved
Beyond the standardsMade in Florim products are a guarantee of safety highly innovative content and eco-friendliness The people who produce them work in a safe place and in ethically sustainable conditions Due to their nature all Florim products are guaranteed free from pollutant emissions do not accumulate electrostatic charges are frostproof and completely inert and are undamaged by contact with flames The Groups Internet sites and collection catalogues contain the technical data sheets which detail the product information (slip-resistance breaking strain abrasion resistance etc) for every collection as well as its recycled material content with the relative certificates
During the period under consideration no banned products were placed on the market and the company was not found guilty of any breaches of the law with regard to data protection or its marketing and communication activities
EU Ecolabel nr IT2104
2016 Sustainability Report 33
Quality SystemThe current ISO 9001 standards define quality as the ability to satisfy explicit or implicit needs via a product or a service A Quality System implies constant improvement of company processes in order to realise products that always satisfy the customerrsquos needs Further to the 2016 audit Florim obtained the renewal of its UNI EN ISO 90012015 certification for the design manufacture and sale of all categories of ceramic tile
Objective Indicator 2012 2013 2014 2015 2016
Continual improvement of control of the production process
Percentage of First Grade Product ()
924 943 942 952 956
Quality rate () 883 905 903 905 909
Scrap rate () 44 41 42 42 49
Productivity (sq mhour) 186 188 186 190 200
Improvements in sales performance and customer satisfaction
Innovation rate () 330 296 367 455 364
Coverage () 795 714 814 813 816
Total portfolio shippable within one month ()
911 837 888 893 897
Optimization of range and stocks
Obsolete stock () 172 126 165 120 69
Stock turnover rate () 13 15 16 15 16
Gradual elimination of disputes complaints and claims concerning service
Square meters affected by complaints ()
17 12 08 12 09
Complaints by number of order items ()
10 11 11 10 10
Gradual improvement in staff skill levels
Employee turnover () 15 23 04 04 12
KeyPercentage of first grade product percentage ratio between the square meters of first grade products and the total square meters transferred to stockQuality rate percentage ratio between the square meters of first grade product transferred to stock and the square meters leaving the pressesScrap rate percentage difference between square meters of material leaving the presses and square meters of product actually transferred to stockProductivity ratio between the square meters transferred to stock and the total hours worked in the plantInnovation rate ratio between square meters sold belonging to series designed in the last three years and total square meters sold Florim uses this indicator to assess the effectiveness of its design process in terms of salesCoverage percentage ratio between square meters available for immediate shipment and the square meters on orderTotal portfolio of orders shippable within one month percentage ratio between the square meters which can be shipped in 30 days and the square meters on orderObsolete stock percentage ratio between the square meters of substandard discontinued produce and the total square meters in stock Stock turnover rate ratio between the square meters sold and the square meters in stockSquare meters affected by complaints percentage ratio between the square meters affected by complaints and the square meters soldComplaints by number of order items percentage ratio between the number of complaints and the number of items orderedEmployee turnover percentage ratio between the number of employees leaving the company and being replaced and the workforce at the start of the year
2016 Sustainability Report34
Casamood - Neutra 60 Collection
2016 Sustainability Report 35
OUR COMMITMENTS
The promises we keptIn our last Sustainability Report we committed to achieving a large number of objectives the following are the outcomes we attained
Relaunch of the ldquoCEDIT ndash Ceramiche drsquoItaliardquo brand OBJECTIVE ACHIEVED
Launch of the FLORIM stone brand OBJECTIVE ACHIEVED
Installation of a new latest-generation kiln at the Mordano plant OBJECTIVE ACHIEVED
Transfer of the Moscow showroom to new premises SCHEDULED FOR 2017
Creation of a new gatehouse at the Mordano plantOBJECTIVE POSTPONED TO GIVE PRIORITY TO THE CONSTRUCTION OF THE NEW FACTORY
Introduction of ERP system at Florim USA OBJECTIVE ACHIEVED
Installation of a new spray dryer and raw material handling system at Florim USA
OBJECTIVE ACHIEVED
Economic Responsibility
Renewal of certification of the Florim environmental and energy management system
OBJECTIVE ACHIEVED
Award of new certifications for collections manufactured with a high recycled material content
OBJECTIVE ACHIEVED
Continuation of work to reduce environmental impacts at Mordano especially with the reduction of energy costs
OBJECTIVE ACHIEVED
Continuation of the work to remove asbestos cement roofing materials at the Mordano plant
OBJECTIVE ACHIEVED
Expansion of the system which conveys rainwater to the treatment plant OBJECTIVE ACHIEVED
Reduction of the noise emissions of the air filtering systems OBJECTIVE ACHIEVED
Increase of recycling targets through constant awareness-raising amongst all staff and optimisation of recycling facilities
OBJECTIVE ACHIEVED
Continuation of replacement of the diesel forklift trucks for use on outdoor yards with electric vehicles
OBJECTIVE ACHIEVED
Environmental Responsibility
Running of fourth edition of Master Florim course with new procedures OBJECTIVE ACHIEVED
Creation of an internal refreshment area for the Fiorano office staff OBJECTIVE ACHIEVED
Improvement of corporate welfare through the activation of new free services and discounts tailored to employees needs
OBJECTIVE ACHIEVED
Continuation of the health meetings for the local community in association with Ospedale di Sassuolo Spa
OBJECTIVE ACHIEVED
Organization of new community events at Florim Gallery OBJECTIVE ACHIEVED
Organization of Florim Family Day 2016 A PARTY WAS ORGANISED FOR EMPLOYEES
Social Responsibility
2016 Sustainability Report36
The targets we set for ourselvesWe aim to achieve the following objectives in 2017
Economic Responsibility
Construction of a new factory at Mordano to produce large slabs
Launch of the project to unite the Florim spa sales organizations
Total restyling of the corporate and brand Internet sites
Launch of the HUB project - Intranet CRM Marketing Automation
New plants at Florim USA a press two sorting lines a polishing and rectifying line
New working spaces and cloakrooms for technical staff at the American plant
Environmental Responsibility
Purchase of a new cogenerator for the Mordano plant
Introduction of a new rainwater collection system at Fiorano
Land reclamation project involving covering of the Rio Spezzano stream at Fiorano
Implementation of new software for continual monitoring of energy impacts at Fiorano
Modernisation of the compressor room to improve energy impacts at Mordano
Increase of recycling targets through constant awareness-raising amongst all staff and optimisation of recycling facilities
Continuation of replacement of the diesel forklift trucks for use on outdoor yards with electric vehicles
Social Responsibility
Improvement of corporate welfare through the activation of new free services and discounts tailored to employees needs
Continuation of the health meetings for the local community in association with Ospedale di Sassuolo Spa
Organization of new community events at Florim Gallery
Organization of a new event for Florim spa employees
New offices for hospitality and events staff at Fiorano
2016 Sustainability Report 37
FLORIM USA
Profile and Economic ResponsibilityFlorim USA with registered office at Clarksville - Tennessee - and its subsidiary Florim Solution Inc have been part of the Florim Group since 2000 The Florim USA manufacturing plant one of the largest most technologically advanced in the United States produces porcelain stoneware tiles for the residential market and undertakes commercial projects in North America During the last few years Florim USA has implemented a growth and process optimization strategy which has generated significant technological progress with more innovations planned for the future The strategy adopted will put Florim USA at the worldwide state of the art in porcelain stoneware tile manufacture
In 2016 of the 18 million USD invested 147 was allocated for installation of a latest-generation raw material handling system and a large spray-dryer with an innovative sorting system Improvements were made to other parts of the process to increase their efficiency leading to a further reduction in emissions and scrap rates Additional investments are planned during 2017 to continue this dual trend of rising production with mitigation of environmental impact
The new Florim Flagship Store in New York (152 Madison Avenue 32nd Street)
2016 Sustainability Report38
Environmental ResponsibilityFlorim USA implements the same environmental policy as Florim and is committed to achieving the following objectives
bull reduction of the energy used in the production processbull improvement of the waste management process with a focus on recovery and reusebull introduction of new more eco-efficient technologiesbull adoption of integrated management systems
Florim USA has been pursuing a strategy of careful management of its operations and environmental impact for a number of years Here we summarise the main actions taken and the results achieved in 2016
bull installation of a latest-generation spray-dryer in 2016bull installation of an innovative raw material handling system in 2016bull 100 recycling of wastewater within the processbull optimisation of the management of water bottles with elimination of about 34200 of them per annumbull reuse of almost all production scrap (+99)bull 157000 kg of cardboard recycled in 2016bull award of two different types of product certificationbull 9300 kg of plastic recycledbull recycling of 17 complete trucks of pallets
Environmental Projects and Awards
Florim USA has received Clarksville Montgomery County Green Certification (CMCGC) CMCGC is a program designed to help companies learn and implement best practices in the area of environmental stewardship to sustain the local communityrsquos resources through a series of free workshops taught by local environmental specialists Since 2014 Florim has allocated some of its Environment Managers time for the running of these workshopsFlorim USA earned this green company certification thanks to a large number of projects first and foremost the one which eliminated the use of disposable water bottles replaced with individual reusable bottles provided by the company and a series of fill-up stations About 34200 bottles are removed from the waste cycle every year
During the latest phase of its plant optimization Florim USA has implemented a thorough construction material reuse policy In the various stages of demolition of the old plants including the old storage silos the concrete debris was recovered and reused in other construction worksThis project alone generated 11500 tons of recycled aggregate as well as several hundred tonnes of metal sold to a recycling firm
Environmental management system and eco-compatible products
Florim USArsquos products help builders and designers to meet the requirements for sustainable buildings as defined by the United States Green Building Council (USGBC) through the LEED Green Building Rating System This protocol evaluates and certifies the environmental sustainability of a building as a unit from its design to its day to day management To gain LEED credits many of the Florim USA product lines contain a significant percentage of recycled material (40 or more)This feature contributes to an increase in the LEED score in the projects where these products are installed In 2014 Florim USA together with a large number of other US tile manufacturers and the Tile Council of North America drew up a type III environmental product declaration (EPD) certified under the ISO 14025 standard This ceramic tile life-cycle analysis enables Florim USA products to gain LEED points under the new LEED v4 protocol
2016 Sustainability Report 39
Water use (gallonsper million square feetof finished tiles)
208137 216246 204962 195280 194268
Energy use
2012 2013 2014 2015 2016
Cubic feet of natural gas per million square feet of finished tiles 9343383 9149721 8331170 8390503 8380000
kWh per million square feet of finished tiles 510972 491171 450594 465976 490300
Emissions
Particulate material lt 21024 tonnes per annum
SO2 (sulphur dioxide) lt 1674 tonnes per annum
VOC (volatile organic compounds) lt 1245 tonnes per annum
NOx (oxides of nitrogen) lt 1501 tonnes per annum
Environmental performance indicators ndash summary
The following are the main environmental indicators related to the impact and performance of Florim USA during 2016
Pre-consumer recycled material
Its internal material recycling processes enable the company to minimise its environmental impact since most of the material which would otherwise be sent to landfills or other waste treatment centers is reusedbull Wastewater is entirely recycled within the production process without any discharge into the municipal drainsbull The material in the collection bags from the tile body and glaze preparation areas the press and glaze application is entirely recycled within the processbull All scrap fired tiles are entirely recycled within the processbull 157000 kg of cardboard was sold to an external recycled material dealerbull 17 trucks of unusable wooden pallets were sold to a pallet regeneration companybull About 9300 kg of waste shrink-wrap plastic film was recovered and recycled
Post-consumer recycled material
About 82000 kg of glass was removed from the flow of waste destined for the local landfill and recycled within the process Florim USA has signed an agreement with the local landfill for consignment of all the glass it handles which is collected and set aside for recycling
Water use disposal and reuse
The water used during the production process is recycled continually therefore no water is discharged into the municipal drains
The 2016 emissions figures are in line with those for previous years well below the standards laid down
Water use 2012 2013 2014 2015 2016
Water use (gallons per million square feet of finished tiles) 216246 204962 195280 194268 203928
2016 Sustainability Report40
Social Responsibility
Employees
The Florim USA workforce comprises 348 staff employed at the production site the Clarksville and Nashville outlet stores and the Florim Solution offices Of the 348 employees 273 are blue-collar workers and 75 office staff 5 employees are Italians on secondment to the United States Florim USA offers a number of benefits to full time employeesbull health and dental care insurancebull Vision insurancebull life insurance for employees and optionally for family membersbull temporary and permanent disability supportbull employee pension plan
2012 2013 2014 2015 2016
Workplace injuries 50 41 22 29 27
The Employee Assistance Program (EAP) also offers support to employees and their families in the event of psychological difficulty or other problems that can have a negative impact on their quality of life Florim USA supports all the costs of the program
Equal opportunities
Florim USA provides equal opportunities in all employment practices to all qualified employees and applicants regardless of race colour religion gender national origin age disability or membership of the armed forces or any other category protected by federal state or local laws
Health and safety
FLORIM USA is committed to ensuring a safe healthy workplace for all employees It therefore replaces old and obsolete equipment with new technologically more modern machinery and updates safety plans as new information gradually becomes availableAs well as an internal supervisor Florim USA has also appointed a health and safety committee which constantly monitors the plans effectiveness and makes any changes requiredThere are currently 20 plant employees who hold CPRfirst aid qualifications They occupy a variety of positions and work different shifts within the plant and have volunteered to attend training courses sponsored by the company for the award of these qualifications
Training
In 2016 every Florim USA employee attended an average of about 25 hours of training The training provided covered the operating procedures for the new equipment the main safety plans and the procedures for use of existing equipment for new employeesAll new staff undergo specific training for their department focusing on the safety-related aspects of the department concerned as well as more generalized safety training
Some of these themes includebull safe correct use of forklift trucksbull training on work in confined spacesbull shutdownwarning procedures and safe electrical practicesbull safe lifting procedures
2016 Sustainability Report 41
Florim USA ndash (Clarksville Tennessee)
For employees wishing to continue their education Florim USA offers assistance through the Educational Assistance Program It provides aid with the cost of education and textbooks and is available for any employee wishing to study for a technical qualification a diploma or a degreeThe plant staff training and education plan also includes various training schemes at Florim Italy where employees are instructed in the use of new equipment before it is installed at the American plantThroughout 2016 Florim USA will continue to provide a free e-learning course on its website for architects engineers and contractors (AEC) to improve their knowledge of sustainable porcelain stoneware tiles
Employee welfare activities
Florim USA employee picnic - In 2016 the company once again held its annual picnic for employees offering them a wide variety of foods games activities and live shows in an event which provided an unforgettable days enjoyment Within the event participants received prizes in the form of vouchers and gifts
Employee anniversary dinner - 2016 again saw the usual dinner to honour Florim USA employees with 5 10 15 20 or more years of service A special evening event was held in the presence of the Chairman and the other managers to celebrate the loyalty and hard work these employees have contributed during their careers with the firm
2016 Sustainability Report42
Local Community
During 2016 Florim USA continued to provide its support to a number of projects in its local areaSome of the main projects include
Scholarships - As part of its work to support the local community Florim has an established scheme which awards scholarships to deserving students at the Austin Peay State University in memory of Florim Group founder Giovanni Lucchese In December 2016 a delegation of Florim representatives attended a scholarship presentation lunch at the Austin Peay State University hosted by the President of the University
Montgomery County Green Certification Program - Florim USA staff actively participate in the Montgomery County Green Certification Program which aims to help companies learn and implement best practices with regard to safeguarding the environment and environmental resources
Donations - In 2016 the company again made a large number of donationsbull book collection for the Austin Peay State University Employees made a generous donation of used books in good condition for children and young people of the APSU in the hope of further promoting the education of future generationsbull to Community Cares the national organization that promotes the acceptance and social inclusion of individuals with Downs Syndromebull to the Aspire Clarksville Foundation a 501(c)(3) charitable foundation whose mission is to continuously improve the economy and the livability (quality of life) of the community by attracting significant capital investment and expansion by businesses and corporations thereby creating better opportunities and higher paying jobs for residentsbull to the Alzheimerrsquos Association a non-profit voluntary organization dedicated to the care and support of Alzheimers Disease sufferers and research into the condition Its aim is to eliminate the disease through the advancement of research to provide and enhance care and support for all affected and to reduce the risk of dementia through the promotion of brain health
Other activities - Every year Florim USA participates in the United Way Drive initiative to support local non-profit organizations which provide economic assistance and psychological support to persons in difficulty
Florim USA provides regular support to the Salvation Army by collecting canned foods for persons in needIn 2016 the company again organised a canned food collection for Manna Cafeacute in Clarksville TN Manna Cafeacute is a local non-profit organization based in Middle Tennessee with the primary mission of meeting peoples fundamental need for food before encouraging them to permanently change their lives for the better More than 15 of the population in Montgomery County are affected by food insecurity (about 28000 people) The percentage of children affected is about 215 a third of whom are excluded by income from federal programs such as free school mealsFinally donations were made tobull American Lung Association the leading organization working to save lives by improving lung health and preventing lung disease through research and educationbull Cheer for a Cure an organization that gives money directly to afflicting families who have a loved one suffering from cancer and need assistance to alleviate the added financial stressbull Habitat for Humanity Since 1992 Habitat for Humanity in Montgomery County Tennessee has worked with 93 low-income families with more than 210 children to revitalise various parts of Clarksville-Montgomery County by building new homes
2016 Sustainability Report 43
Quality SystemFlorim USA works under a Quality System certified to UNI EN ISO 9001 standards The following are some of the figures in brief
Objective Indicator 2012 2013 2014 2015 2016
Optimisation of control of the production process
Percentage of First Grade Product ()
932 917 940 949 9510
Quality rate () 883 857 893 906 909
Scrap rate () 56 65 48 45 45
KeyPercentage of first grade product ratio between square feet of first grade material and total square feet transferred to stockQuality rate ratio between square feet of first grade material transferred to stock and square feet pressedScrap rate ratio between square feet pressed and square feet of product actually transferred to stock
Other ActivitiesFlorim USA and trade shows
In 2016 Florim USA participated at a number of shows and events including Coverings the AIA Tennessee Convention Hardscape North America Total Solutions Plus Neocon International Pool - Spa and Patio Expo These events targeted at the various categories of industry professionals such as dealers and designers gave Florim USA the opportunity to present its new range of indoor and outdoor products
Design Center
In December 2015 Florim USA opened a design center showroom in Nashville (TN) in a strategic location close to the airport and the city center With a spacious area to host individual CEU presentations and workshops this design center has the potential to be a major resource for local architects In 2016 it was also awarded the ldquoOutstanding Boothrdquo booth prize at the 33rd edition of the Annual Home Decorating and Remodeling Show The location is the ideal place for sharing ideas finding inspiration and putting professionals and architects in touch with each other
Florim Nashville Design Center
2016 Sustainability Report44
GRI International Sustainability Indicators SDGsThe information below illustrates the correspondence between the Florim (Italian companies) 2016 Sustainability Report the GRI-G4 guidelines and the icons of the Sustainable Development Goals (SDGs) definitively adopted by the United NationsA description of the SDGs is available at wwwglobalcompactnetworkorg
GRI indicators
Description Page Reference to SDGs
1 Strategy and Analysis
G4-1 Statement from the most senior decision-maker of the organization 5
2 Organization profile
G4-3 Name of the organization 2
G4-4 Primary brands products andor services 9
G4-5 Location of the organizations headquarters 9
G4-6 Number and names of the countries where the organization operates 9
G4-7 Nature of ownership and legal form 14
G4-8 Markets served 9
G4-9 Scale of the organization 8 8
G4-10 Significant changes regarding size structure or ownership 8
G4-11 Employees covered by National Collective Bargaining Agreement 27
G4-12 Describe the supply chain 16
G4-13Significant changes regarding the organizationrsquos size structure ownership or its supply chain
Reporting process
launched
G4-14 Precautionary principle 22
G4-15 List of external commitments in which the company is involved 22 32 33
G4-16 Associations or interest groups in which the company is involvedwwwflorimit gt
about us gt partnerships
3 Identified material aspects and boundaries
G4-18 Process used to define the report content 6
G4-19 Material aspects 16
G4-20 Boundaries of each material aspect 6
G4-21 Boundaries of each material aspect outside the organizationPartial reporting
(pages 6 16)
G4-22 Explanation of the effect of any restatements of information provided in previous reports 6
G4-23Significant changes from previous reporting periods in the scope boundaries or measurement methods
6
3 Stakeholder engagement
G4-24 List of stakeholders 15
G4-25 Identification of stakeholders 15
G4-26 Stakeholder engagement 6 16
G4-27 Key topics and concerns that have been raised through stakeholder engagement 16
4 Boundary of the Report
G4-28 Reporting period 6
G4-29 Date of publication 2
G4-30 Reporting cycle 6
G4-31 Contacts and addresses for additional information 46
5 GRI Content Index
G4-32 Reporting option chosen 6 7
G4-33 External assurance of ReportThe Report is not
externally assured
2016 Sustainability Report 45
GRI indicators
Description Page Reference to SDGs
6 Governance
G4-34 Governance structure 14
7 Ethics and integrity
G4-56 Values principles standards and norms of behavior 13 16
Economic performance indicators
EC1 Direct economic value generated and distributed 19 25789
EC5 Wages 27 158
EC7 Development and impact of infrastructure investments and services supported 23 24 31 257911
Environmental performance indicators
G4-EN2 Percentage of materials used that are recycled input materials 17 22 23 812
G4-EN3 Energy consumption within the organization 24 781213
G4-EN6 Reduction of energy consumption 17 24 71213
G4-EN7 Reductions in energy requirements of products and servicesPartial reporting
(page 22)71213
G4-EN8 Total water withdrawal by source 17 23 6
G4-EN10 Percentage and total volume of water recycled and reused 17 21 23 612
G4-EN11 Biodiversity 23 615
G4-EN15 Total indirect greenhouse gas emissions by weight 25 3121315
G4-EN16 Total indirect greenhouse gas emissions by weight 25 3121315
G4-EN19 Reduction of greenhouse gas emissions 8 24 1315
G4-EN21 NOx SOx and other significant air emissions 25 31215
G4-EN22 Total water discharge by quality and destination 23 6
G4-EN23 Total weight of waste by type 17 22 3612
G4-EN27 Impact mitigation of environmental impacts of products and services 23 68121315
G4-EN29 Monetary value of significant fines 22 16
G4-EN30 Significant environmental impacts of transporting products and goodsmaterialsPartial reporting
(page 25)111213
Social performance indicators
G4-LA1 Total number and rates of new employee hires and employee turnoverPartial reporting
(pages 17 27)8
G4-LA6 Workplace injury ratesPartial reporting
(page 17)38
G4-LA9 Average hours of training per year per employee 28 48
G4-LA12Composition of governance bodies and breakdown of employees according to gender age group etc
27 58
G4-LA13 Ratio of basic salary and total remuneration of women to men 27 5810
Society
G4-SO1 Operations with local community engagement 12 31 16
G4-SO3 Operations assessed for risks related to corruptionPartial reporting
(page 13)
Product responsibility
G4-PR1 Assessment of health and safety impacts for improvement 23 32
G4-PR3 Type of information about products and services required by the procedures 32 12
G4-PR5 Proceedings relating to customer satisfaction including surveys conducted to measure it 33
G4-PR6 Sale of banned or disputed products 32
G4-PR8 Number of substantiated complaints regarding breaches of privacy 32 16
2016 Sustainability Report46
Your Assessment
You are kindly requested to take a few minutes of your time to give us your assessment and any suggestions to enable us to improve future editions of our Sustainability Report
Click here to send us your feedback
To keep up to date with our business
Spazio CEDIT - interior (Milan)
wwwflorimiten
Florim Ceramiche
Florim4Architects
Florim_ceramiche
Florim Ceramiche spa
Florim Ceramiche
Florim Ceramiche
For any further information please feel free to contact our communications department comunicazioneflorimit
2016 Sustainability Report 47
Premio Lucchese - Florim Gallery (Fiorano Modenese - Modena Italy)
Intrapresaelig Guggenheim Collection - Massimo Bottura in Florim Gallery (Fiorano Modenese - Modena Italy)
Panathlon Christmas Gala - Florim Gallery (Fiorano Modenese - Modena Italy)
2016 Sustainability Report48
White Christmas Party - Florim Gallery (Fiorano Modenese - Modena Italy)
Cersaie - Mario Biondi in Florim Gallery (Fiorano Modenese - Modena Italy)
Dal buio alla luce - Social event at Florim Gallery (Fiorano Modenese - Modena Italy)
2016 Sustainability Report 49
Florim Gallery entrance (Fiorano Modenese - MO)
2016 Sustainability Report52
Florim Ceramiche spaVia Canaletto 24 - 41042 Fiorano Modenese (Modena Italy) - Tel +39 0536 840111 - wwwflorimit
2016 Sustainability Report32
Product Responsibility
Here we summarize the concept of Made in Florim denoting a product that encapsulates the companys core values passion innovation a constant commitment to improvement and corporate social responsibility
Florim product certifications
CE Marking guarantees the user that the materials purchased meet the requirements of the relevant regulations and that the characteristics concerned are virtually unchanged for all production lots It is a declaration of conformity which protects the consumerrsquos safety The presence of the CE Marking on packaging guarantees that Florim products comply with the relevant regulatory requirements
Ecolabel (EC Regulation 662010) is a certification granted to products which comply with ecological and performance criteria set at a European level concerning raw material extraction supplier selection manufacturing processes packaging distribution use and disposal The certified Florim collections are Architech Ecotech Reverse Walks 10 by Floor Gres and Pietra del Nord under the Rex brand
Several ceramic tile collections bearing the Florim brands have earned certification from Bureau Veritas for their pre-consumer recycled material content These articles are therefore fully eco-compatible and can meet the environmental sustainability requirements imposed by many international certifications
Florim is a member of the US Green Building Council (USGBC) the most important association which promotes the reduction of buildings negative impact on the environment To allow the effective monitoring a projects level of sustainability the USGBC has developed a certification procedure for the development of sustainable buildings which assess and certifies the sustainability of a building in its entirety Florim materials are able to help to gain LEED points in a number of areas (data available on the Florim brand websites)
Florim has achieved the prestigious Greenguard certification for all its products Issued by the American body UL Environment this certification aims to reduce indoor pollution caused by interior design systems and materials UL Environment thus aims to protect health by improving air quality and reducing peoples exposure to chemicals and other pollutants Florim has also achieved Greenguard Gold Certification which imposes even stricter limits to confirm that a given product is suitable for use even in locations such as schools and health care facilities
The EPD or Environmental Product Declaration is a document which defines the environmental impacts arising from production In 2016 Florim participated in the study - certified by the German organization IBU - performed on the ceramics industry average data which aims to raise international awareness of the excellence of the environmental standards achieved
Beyond the standardsMade in Florim products are a guarantee of safety highly innovative content and eco-friendliness The people who produce them work in a safe place and in ethically sustainable conditions Due to their nature all Florim products are guaranteed free from pollutant emissions do not accumulate electrostatic charges are frostproof and completely inert and are undamaged by contact with flames The Groups Internet sites and collection catalogues contain the technical data sheets which detail the product information (slip-resistance breaking strain abrasion resistance etc) for every collection as well as its recycled material content with the relative certificates
During the period under consideration no banned products were placed on the market and the company was not found guilty of any breaches of the law with regard to data protection or its marketing and communication activities
EU Ecolabel nr IT2104
2016 Sustainability Report 33
Quality SystemThe current ISO 9001 standards define quality as the ability to satisfy explicit or implicit needs via a product or a service A Quality System implies constant improvement of company processes in order to realise products that always satisfy the customerrsquos needs Further to the 2016 audit Florim obtained the renewal of its UNI EN ISO 90012015 certification for the design manufacture and sale of all categories of ceramic tile
Objective Indicator 2012 2013 2014 2015 2016
Continual improvement of control of the production process
Percentage of First Grade Product ()
924 943 942 952 956
Quality rate () 883 905 903 905 909
Scrap rate () 44 41 42 42 49
Productivity (sq mhour) 186 188 186 190 200
Improvements in sales performance and customer satisfaction
Innovation rate () 330 296 367 455 364
Coverage () 795 714 814 813 816
Total portfolio shippable within one month ()
911 837 888 893 897
Optimization of range and stocks
Obsolete stock () 172 126 165 120 69
Stock turnover rate () 13 15 16 15 16
Gradual elimination of disputes complaints and claims concerning service
Square meters affected by complaints ()
17 12 08 12 09
Complaints by number of order items ()
10 11 11 10 10
Gradual improvement in staff skill levels
Employee turnover () 15 23 04 04 12
KeyPercentage of first grade product percentage ratio between the square meters of first grade products and the total square meters transferred to stockQuality rate percentage ratio between the square meters of first grade product transferred to stock and the square meters leaving the pressesScrap rate percentage difference between square meters of material leaving the presses and square meters of product actually transferred to stockProductivity ratio between the square meters transferred to stock and the total hours worked in the plantInnovation rate ratio between square meters sold belonging to series designed in the last three years and total square meters sold Florim uses this indicator to assess the effectiveness of its design process in terms of salesCoverage percentage ratio between square meters available for immediate shipment and the square meters on orderTotal portfolio of orders shippable within one month percentage ratio between the square meters which can be shipped in 30 days and the square meters on orderObsolete stock percentage ratio between the square meters of substandard discontinued produce and the total square meters in stock Stock turnover rate ratio between the square meters sold and the square meters in stockSquare meters affected by complaints percentage ratio between the square meters affected by complaints and the square meters soldComplaints by number of order items percentage ratio between the number of complaints and the number of items orderedEmployee turnover percentage ratio between the number of employees leaving the company and being replaced and the workforce at the start of the year
2016 Sustainability Report34
Casamood - Neutra 60 Collection
2016 Sustainability Report 35
OUR COMMITMENTS
The promises we keptIn our last Sustainability Report we committed to achieving a large number of objectives the following are the outcomes we attained
Relaunch of the ldquoCEDIT ndash Ceramiche drsquoItaliardquo brand OBJECTIVE ACHIEVED
Launch of the FLORIM stone brand OBJECTIVE ACHIEVED
Installation of a new latest-generation kiln at the Mordano plant OBJECTIVE ACHIEVED
Transfer of the Moscow showroom to new premises SCHEDULED FOR 2017
Creation of a new gatehouse at the Mordano plantOBJECTIVE POSTPONED TO GIVE PRIORITY TO THE CONSTRUCTION OF THE NEW FACTORY
Introduction of ERP system at Florim USA OBJECTIVE ACHIEVED
Installation of a new spray dryer and raw material handling system at Florim USA
OBJECTIVE ACHIEVED
Economic Responsibility
Renewal of certification of the Florim environmental and energy management system
OBJECTIVE ACHIEVED
Award of new certifications for collections manufactured with a high recycled material content
OBJECTIVE ACHIEVED
Continuation of work to reduce environmental impacts at Mordano especially with the reduction of energy costs
OBJECTIVE ACHIEVED
Continuation of the work to remove asbestos cement roofing materials at the Mordano plant
OBJECTIVE ACHIEVED
Expansion of the system which conveys rainwater to the treatment plant OBJECTIVE ACHIEVED
Reduction of the noise emissions of the air filtering systems OBJECTIVE ACHIEVED
Increase of recycling targets through constant awareness-raising amongst all staff and optimisation of recycling facilities
OBJECTIVE ACHIEVED
Continuation of replacement of the diesel forklift trucks for use on outdoor yards with electric vehicles
OBJECTIVE ACHIEVED
Environmental Responsibility
Running of fourth edition of Master Florim course with new procedures OBJECTIVE ACHIEVED
Creation of an internal refreshment area for the Fiorano office staff OBJECTIVE ACHIEVED
Improvement of corporate welfare through the activation of new free services and discounts tailored to employees needs
OBJECTIVE ACHIEVED
Continuation of the health meetings for the local community in association with Ospedale di Sassuolo Spa
OBJECTIVE ACHIEVED
Organization of new community events at Florim Gallery OBJECTIVE ACHIEVED
Organization of Florim Family Day 2016 A PARTY WAS ORGANISED FOR EMPLOYEES
Social Responsibility
2016 Sustainability Report36
The targets we set for ourselvesWe aim to achieve the following objectives in 2017
Economic Responsibility
Construction of a new factory at Mordano to produce large slabs
Launch of the project to unite the Florim spa sales organizations
Total restyling of the corporate and brand Internet sites
Launch of the HUB project - Intranet CRM Marketing Automation
New plants at Florim USA a press two sorting lines a polishing and rectifying line
New working spaces and cloakrooms for technical staff at the American plant
Environmental Responsibility
Purchase of a new cogenerator for the Mordano plant
Introduction of a new rainwater collection system at Fiorano
Land reclamation project involving covering of the Rio Spezzano stream at Fiorano
Implementation of new software for continual monitoring of energy impacts at Fiorano
Modernisation of the compressor room to improve energy impacts at Mordano
Increase of recycling targets through constant awareness-raising amongst all staff and optimisation of recycling facilities
Continuation of replacement of the diesel forklift trucks for use on outdoor yards with electric vehicles
Social Responsibility
Improvement of corporate welfare through the activation of new free services and discounts tailored to employees needs
Continuation of the health meetings for the local community in association with Ospedale di Sassuolo Spa
Organization of new community events at Florim Gallery
Organization of a new event for Florim spa employees
New offices for hospitality and events staff at Fiorano
2016 Sustainability Report 37
FLORIM USA
Profile and Economic ResponsibilityFlorim USA with registered office at Clarksville - Tennessee - and its subsidiary Florim Solution Inc have been part of the Florim Group since 2000 The Florim USA manufacturing plant one of the largest most technologically advanced in the United States produces porcelain stoneware tiles for the residential market and undertakes commercial projects in North America During the last few years Florim USA has implemented a growth and process optimization strategy which has generated significant technological progress with more innovations planned for the future The strategy adopted will put Florim USA at the worldwide state of the art in porcelain stoneware tile manufacture
In 2016 of the 18 million USD invested 147 was allocated for installation of a latest-generation raw material handling system and a large spray-dryer with an innovative sorting system Improvements were made to other parts of the process to increase their efficiency leading to a further reduction in emissions and scrap rates Additional investments are planned during 2017 to continue this dual trend of rising production with mitigation of environmental impact
The new Florim Flagship Store in New York (152 Madison Avenue 32nd Street)
2016 Sustainability Report38
Environmental ResponsibilityFlorim USA implements the same environmental policy as Florim and is committed to achieving the following objectives
bull reduction of the energy used in the production processbull improvement of the waste management process with a focus on recovery and reusebull introduction of new more eco-efficient technologiesbull adoption of integrated management systems
Florim USA has been pursuing a strategy of careful management of its operations and environmental impact for a number of years Here we summarise the main actions taken and the results achieved in 2016
bull installation of a latest-generation spray-dryer in 2016bull installation of an innovative raw material handling system in 2016bull 100 recycling of wastewater within the processbull optimisation of the management of water bottles with elimination of about 34200 of them per annumbull reuse of almost all production scrap (+99)bull 157000 kg of cardboard recycled in 2016bull award of two different types of product certificationbull 9300 kg of plastic recycledbull recycling of 17 complete trucks of pallets
Environmental Projects and Awards
Florim USA has received Clarksville Montgomery County Green Certification (CMCGC) CMCGC is a program designed to help companies learn and implement best practices in the area of environmental stewardship to sustain the local communityrsquos resources through a series of free workshops taught by local environmental specialists Since 2014 Florim has allocated some of its Environment Managers time for the running of these workshopsFlorim USA earned this green company certification thanks to a large number of projects first and foremost the one which eliminated the use of disposable water bottles replaced with individual reusable bottles provided by the company and a series of fill-up stations About 34200 bottles are removed from the waste cycle every year
During the latest phase of its plant optimization Florim USA has implemented a thorough construction material reuse policy In the various stages of demolition of the old plants including the old storage silos the concrete debris was recovered and reused in other construction worksThis project alone generated 11500 tons of recycled aggregate as well as several hundred tonnes of metal sold to a recycling firm
Environmental management system and eco-compatible products
Florim USArsquos products help builders and designers to meet the requirements for sustainable buildings as defined by the United States Green Building Council (USGBC) through the LEED Green Building Rating System This protocol evaluates and certifies the environmental sustainability of a building as a unit from its design to its day to day management To gain LEED credits many of the Florim USA product lines contain a significant percentage of recycled material (40 or more)This feature contributes to an increase in the LEED score in the projects where these products are installed In 2014 Florim USA together with a large number of other US tile manufacturers and the Tile Council of North America drew up a type III environmental product declaration (EPD) certified under the ISO 14025 standard This ceramic tile life-cycle analysis enables Florim USA products to gain LEED points under the new LEED v4 protocol
2016 Sustainability Report 39
Water use (gallonsper million square feetof finished tiles)
208137 216246 204962 195280 194268
Energy use
2012 2013 2014 2015 2016
Cubic feet of natural gas per million square feet of finished tiles 9343383 9149721 8331170 8390503 8380000
kWh per million square feet of finished tiles 510972 491171 450594 465976 490300
Emissions
Particulate material lt 21024 tonnes per annum
SO2 (sulphur dioxide) lt 1674 tonnes per annum
VOC (volatile organic compounds) lt 1245 tonnes per annum
NOx (oxides of nitrogen) lt 1501 tonnes per annum
Environmental performance indicators ndash summary
The following are the main environmental indicators related to the impact and performance of Florim USA during 2016
Pre-consumer recycled material
Its internal material recycling processes enable the company to minimise its environmental impact since most of the material which would otherwise be sent to landfills or other waste treatment centers is reusedbull Wastewater is entirely recycled within the production process without any discharge into the municipal drainsbull The material in the collection bags from the tile body and glaze preparation areas the press and glaze application is entirely recycled within the processbull All scrap fired tiles are entirely recycled within the processbull 157000 kg of cardboard was sold to an external recycled material dealerbull 17 trucks of unusable wooden pallets were sold to a pallet regeneration companybull About 9300 kg of waste shrink-wrap plastic film was recovered and recycled
Post-consumer recycled material
About 82000 kg of glass was removed from the flow of waste destined for the local landfill and recycled within the process Florim USA has signed an agreement with the local landfill for consignment of all the glass it handles which is collected and set aside for recycling
Water use disposal and reuse
The water used during the production process is recycled continually therefore no water is discharged into the municipal drains
The 2016 emissions figures are in line with those for previous years well below the standards laid down
Water use 2012 2013 2014 2015 2016
Water use (gallons per million square feet of finished tiles) 216246 204962 195280 194268 203928
2016 Sustainability Report40
Social Responsibility
Employees
The Florim USA workforce comprises 348 staff employed at the production site the Clarksville and Nashville outlet stores and the Florim Solution offices Of the 348 employees 273 are blue-collar workers and 75 office staff 5 employees are Italians on secondment to the United States Florim USA offers a number of benefits to full time employeesbull health and dental care insurancebull Vision insurancebull life insurance for employees and optionally for family membersbull temporary and permanent disability supportbull employee pension plan
2012 2013 2014 2015 2016
Workplace injuries 50 41 22 29 27
The Employee Assistance Program (EAP) also offers support to employees and their families in the event of psychological difficulty or other problems that can have a negative impact on their quality of life Florim USA supports all the costs of the program
Equal opportunities
Florim USA provides equal opportunities in all employment practices to all qualified employees and applicants regardless of race colour religion gender national origin age disability or membership of the armed forces or any other category protected by federal state or local laws
Health and safety
FLORIM USA is committed to ensuring a safe healthy workplace for all employees It therefore replaces old and obsolete equipment with new technologically more modern machinery and updates safety plans as new information gradually becomes availableAs well as an internal supervisor Florim USA has also appointed a health and safety committee which constantly monitors the plans effectiveness and makes any changes requiredThere are currently 20 plant employees who hold CPRfirst aid qualifications They occupy a variety of positions and work different shifts within the plant and have volunteered to attend training courses sponsored by the company for the award of these qualifications
Training
In 2016 every Florim USA employee attended an average of about 25 hours of training The training provided covered the operating procedures for the new equipment the main safety plans and the procedures for use of existing equipment for new employeesAll new staff undergo specific training for their department focusing on the safety-related aspects of the department concerned as well as more generalized safety training
Some of these themes includebull safe correct use of forklift trucksbull training on work in confined spacesbull shutdownwarning procedures and safe electrical practicesbull safe lifting procedures
2016 Sustainability Report 41
Florim USA ndash (Clarksville Tennessee)
For employees wishing to continue their education Florim USA offers assistance through the Educational Assistance Program It provides aid with the cost of education and textbooks and is available for any employee wishing to study for a technical qualification a diploma or a degreeThe plant staff training and education plan also includes various training schemes at Florim Italy where employees are instructed in the use of new equipment before it is installed at the American plantThroughout 2016 Florim USA will continue to provide a free e-learning course on its website for architects engineers and contractors (AEC) to improve their knowledge of sustainable porcelain stoneware tiles
Employee welfare activities
Florim USA employee picnic - In 2016 the company once again held its annual picnic for employees offering them a wide variety of foods games activities and live shows in an event which provided an unforgettable days enjoyment Within the event participants received prizes in the form of vouchers and gifts
Employee anniversary dinner - 2016 again saw the usual dinner to honour Florim USA employees with 5 10 15 20 or more years of service A special evening event was held in the presence of the Chairman and the other managers to celebrate the loyalty and hard work these employees have contributed during their careers with the firm
2016 Sustainability Report42
Local Community
During 2016 Florim USA continued to provide its support to a number of projects in its local areaSome of the main projects include
Scholarships - As part of its work to support the local community Florim has an established scheme which awards scholarships to deserving students at the Austin Peay State University in memory of Florim Group founder Giovanni Lucchese In December 2016 a delegation of Florim representatives attended a scholarship presentation lunch at the Austin Peay State University hosted by the President of the University
Montgomery County Green Certification Program - Florim USA staff actively participate in the Montgomery County Green Certification Program which aims to help companies learn and implement best practices with regard to safeguarding the environment and environmental resources
Donations - In 2016 the company again made a large number of donationsbull book collection for the Austin Peay State University Employees made a generous donation of used books in good condition for children and young people of the APSU in the hope of further promoting the education of future generationsbull to Community Cares the national organization that promotes the acceptance and social inclusion of individuals with Downs Syndromebull to the Aspire Clarksville Foundation a 501(c)(3) charitable foundation whose mission is to continuously improve the economy and the livability (quality of life) of the community by attracting significant capital investment and expansion by businesses and corporations thereby creating better opportunities and higher paying jobs for residentsbull to the Alzheimerrsquos Association a non-profit voluntary organization dedicated to the care and support of Alzheimers Disease sufferers and research into the condition Its aim is to eliminate the disease through the advancement of research to provide and enhance care and support for all affected and to reduce the risk of dementia through the promotion of brain health
Other activities - Every year Florim USA participates in the United Way Drive initiative to support local non-profit organizations which provide economic assistance and psychological support to persons in difficulty
Florim USA provides regular support to the Salvation Army by collecting canned foods for persons in needIn 2016 the company again organised a canned food collection for Manna Cafeacute in Clarksville TN Manna Cafeacute is a local non-profit organization based in Middle Tennessee with the primary mission of meeting peoples fundamental need for food before encouraging them to permanently change their lives for the better More than 15 of the population in Montgomery County are affected by food insecurity (about 28000 people) The percentage of children affected is about 215 a third of whom are excluded by income from federal programs such as free school mealsFinally donations were made tobull American Lung Association the leading organization working to save lives by improving lung health and preventing lung disease through research and educationbull Cheer for a Cure an organization that gives money directly to afflicting families who have a loved one suffering from cancer and need assistance to alleviate the added financial stressbull Habitat for Humanity Since 1992 Habitat for Humanity in Montgomery County Tennessee has worked with 93 low-income families with more than 210 children to revitalise various parts of Clarksville-Montgomery County by building new homes
2016 Sustainability Report 43
Quality SystemFlorim USA works under a Quality System certified to UNI EN ISO 9001 standards The following are some of the figures in brief
Objective Indicator 2012 2013 2014 2015 2016
Optimisation of control of the production process
Percentage of First Grade Product ()
932 917 940 949 9510
Quality rate () 883 857 893 906 909
Scrap rate () 56 65 48 45 45
KeyPercentage of first grade product ratio between square feet of first grade material and total square feet transferred to stockQuality rate ratio between square feet of first grade material transferred to stock and square feet pressedScrap rate ratio between square feet pressed and square feet of product actually transferred to stock
Other ActivitiesFlorim USA and trade shows
In 2016 Florim USA participated at a number of shows and events including Coverings the AIA Tennessee Convention Hardscape North America Total Solutions Plus Neocon International Pool - Spa and Patio Expo These events targeted at the various categories of industry professionals such as dealers and designers gave Florim USA the opportunity to present its new range of indoor and outdoor products
Design Center
In December 2015 Florim USA opened a design center showroom in Nashville (TN) in a strategic location close to the airport and the city center With a spacious area to host individual CEU presentations and workshops this design center has the potential to be a major resource for local architects In 2016 it was also awarded the ldquoOutstanding Boothrdquo booth prize at the 33rd edition of the Annual Home Decorating and Remodeling Show The location is the ideal place for sharing ideas finding inspiration and putting professionals and architects in touch with each other
Florim Nashville Design Center
2016 Sustainability Report44
GRI International Sustainability Indicators SDGsThe information below illustrates the correspondence between the Florim (Italian companies) 2016 Sustainability Report the GRI-G4 guidelines and the icons of the Sustainable Development Goals (SDGs) definitively adopted by the United NationsA description of the SDGs is available at wwwglobalcompactnetworkorg
GRI indicators
Description Page Reference to SDGs
1 Strategy and Analysis
G4-1 Statement from the most senior decision-maker of the organization 5
2 Organization profile
G4-3 Name of the organization 2
G4-4 Primary brands products andor services 9
G4-5 Location of the organizations headquarters 9
G4-6 Number and names of the countries where the organization operates 9
G4-7 Nature of ownership and legal form 14
G4-8 Markets served 9
G4-9 Scale of the organization 8 8
G4-10 Significant changes regarding size structure or ownership 8
G4-11 Employees covered by National Collective Bargaining Agreement 27
G4-12 Describe the supply chain 16
G4-13Significant changes regarding the organizationrsquos size structure ownership or its supply chain
Reporting process
launched
G4-14 Precautionary principle 22
G4-15 List of external commitments in which the company is involved 22 32 33
G4-16 Associations or interest groups in which the company is involvedwwwflorimit gt
about us gt partnerships
3 Identified material aspects and boundaries
G4-18 Process used to define the report content 6
G4-19 Material aspects 16
G4-20 Boundaries of each material aspect 6
G4-21 Boundaries of each material aspect outside the organizationPartial reporting
(pages 6 16)
G4-22 Explanation of the effect of any restatements of information provided in previous reports 6
G4-23Significant changes from previous reporting periods in the scope boundaries or measurement methods
6
3 Stakeholder engagement
G4-24 List of stakeholders 15
G4-25 Identification of stakeholders 15
G4-26 Stakeholder engagement 6 16
G4-27 Key topics and concerns that have been raised through stakeholder engagement 16
4 Boundary of the Report
G4-28 Reporting period 6
G4-29 Date of publication 2
G4-30 Reporting cycle 6
G4-31 Contacts and addresses for additional information 46
5 GRI Content Index
G4-32 Reporting option chosen 6 7
G4-33 External assurance of ReportThe Report is not
externally assured
2016 Sustainability Report 45
GRI indicators
Description Page Reference to SDGs
6 Governance
G4-34 Governance structure 14
7 Ethics and integrity
G4-56 Values principles standards and norms of behavior 13 16
Economic performance indicators
EC1 Direct economic value generated and distributed 19 25789
EC5 Wages 27 158
EC7 Development and impact of infrastructure investments and services supported 23 24 31 257911
Environmental performance indicators
G4-EN2 Percentage of materials used that are recycled input materials 17 22 23 812
G4-EN3 Energy consumption within the organization 24 781213
G4-EN6 Reduction of energy consumption 17 24 71213
G4-EN7 Reductions in energy requirements of products and servicesPartial reporting
(page 22)71213
G4-EN8 Total water withdrawal by source 17 23 6
G4-EN10 Percentage and total volume of water recycled and reused 17 21 23 612
G4-EN11 Biodiversity 23 615
G4-EN15 Total indirect greenhouse gas emissions by weight 25 3121315
G4-EN16 Total indirect greenhouse gas emissions by weight 25 3121315
G4-EN19 Reduction of greenhouse gas emissions 8 24 1315
G4-EN21 NOx SOx and other significant air emissions 25 31215
G4-EN22 Total water discharge by quality and destination 23 6
G4-EN23 Total weight of waste by type 17 22 3612
G4-EN27 Impact mitigation of environmental impacts of products and services 23 68121315
G4-EN29 Monetary value of significant fines 22 16
G4-EN30 Significant environmental impacts of transporting products and goodsmaterialsPartial reporting
(page 25)111213
Social performance indicators
G4-LA1 Total number and rates of new employee hires and employee turnoverPartial reporting
(pages 17 27)8
G4-LA6 Workplace injury ratesPartial reporting
(page 17)38
G4-LA9 Average hours of training per year per employee 28 48
G4-LA12Composition of governance bodies and breakdown of employees according to gender age group etc
27 58
G4-LA13 Ratio of basic salary and total remuneration of women to men 27 5810
Society
G4-SO1 Operations with local community engagement 12 31 16
G4-SO3 Operations assessed for risks related to corruptionPartial reporting
(page 13)
Product responsibility
G4-PR1 Assessment of health and safety impacts for improvement 23 32
G4-PR3 Type of information about products and services required by the procedures 32 12
G4-PR5 Proceedings relating to customer satisfaction including surveys conducted to measure it 33
G4-PR6 Sale of banned or disputed products 32
G4-PR8 Number of substantiated complaints regarding breaches of privacy 32 16
2016 Sustainability Report46
Your Assessment
You are kindly requested to take a few minutes of your time to give us your assessment and any suggestions to enable us to improve future editions of our Sustainability Report
Click here to send us your feedback
To keep up to date with our business
Spazio CEDIT - interior (Milan)
wwwflorimiten
Florim Ceramiche
Florim4Architects
Florim_ceramiche
Florim Ceramiche spa
Florim Ceramiche
Florim Ceramiche
For any further information please feel free to contact our communications department comunicazioneflorimit
2016 Sustainability Report 47
Premio Lucchese - Florim Gallery (Fiorano Modenese - Modena Italy)
Intrapresaelig Guggenheim Collection - Massimo Bottura in Florim Gallery (Fiorano Modenese - Modena Italy)
Panathlon Christmas Gala - Florim Gallery (Fiorano Modenese - Modena Italy)
2016 Sustainability Report48
White Christmas Party - Florim Gallery (Fiorano Modenese - Modena Italy)
Cersaie - Mario Biondi in Florim Gallery (Fiorano Modenese - Modena Italy)
Dal buio alla luce - Social event at Florim Gallery (Fiorano Modenese - Modena Italy)
2016 Sustainability Report 49
Florim Gallery entrance (Fiorano Modenese - MO)
2016 Sustainability Report52
Florim Ceramiche spaVia Canaletto 24 - 41042 Fiorano Modenese (Modena Italy) - Tel +39 0536 840111 - wwwflorimit
2016 Sustainability Report 33
Quality SystemThe current ISO 9001 standards define quality as the ability to satisfy explicit or implicit needs via a product or a service A Quality System implies constant improvement of company processes in order to realise products that always satisfy the customerrsquos needs Further to the 2016 audit Florim obtained the renewal of its UNI EN ISO 90012015 certification for the design manufacture and sale of all categories of ceramic tile
Objective Indicator 2012 2013 2014 2015 2016
Continual improvement of control of the production process
Percentage of First Grade Product ()
924 943 942 952 956
Quality rate () 883 905 903 905 909
Scrap rate () 44 41 42 42 49
Productivity (sq mhour) 186 188 186 190 200
Improvements in sales performance and customer satisfaction
Innovation rate () 330 296 367 455 364
Coverage () 795 714 814 813 816
Total portfolio shippable within one month ()
911 837 888 893 897
Optimization of range and stocks
Obsolete stock () 172 126 165 120 69
Stock turnover rate () 13 15 16 15 16
Gradual elimination of disputes complaints and claims concerning service
Square meters affected by complaints ()
17 12 08 12 09
Complaints by number of order items ()
10 11 11 10 10
Gradual improvement in staff skill levels
Employee turnover () 15 23 04 04 12
KeyPercentage of first grade product percentage ratio between the square meters of first grade products and the total square meters transferred to stockQuality rate percentage ratio between the square meters of first grade product transferred to stock and the square meters leaving the pressesScrap rate percentage difference between square meters of material leaving the presses and square meters of product actually transferred to stockProductivity ratio between the square meters transferred to stock and the total hours worked in the plantInnovation rate ratio between square meters sold belonging to series designed in the last three years and total square meters sold Florim uses this indicator to assess the effectiveness of its design process in terms of salesCoverage percentage ratio between square meters available for immediate shipment and the square meters on orderTotal portfolio of orders shippable within one month percentage ratio between the square meters which can be shipped in 30 days and the square meters on orderObsolete stock percentage ratio between the square meters of substandard discontinued produce and the total square meters in stock Stock turnover rate ratio between the square meters sold and the square meters in stockSquare meters affected by complaints percentage ratio between the square meters affected by complaints and the square meters soldComplaints by number of order items percentage ratio between the number of complaints and the number of items orderedEmployee turnover percentage ratio between the number of employees leaving the company and being replaced and the workforce at the start of the year
2016 Sustainability Report34
Casamood - Neutra 60 Collection
2016 Sustainability Report 35
OUR COMMITMENTS
The promises we keptIn our last Sustainability Report we committed to achieving a large number of objectives the following are the outcomes we attained
Relaunch of the ldquoCEDIT ndash Ceramiche drsquoItaliardquo brand OBJECTIVE ACHIEVED
Launch of the FLORIM stone brand OBJECTIVE ACHIEVED
Installation of a new latest-generation kiln at the Mordano plant OBJECTIVE ACHIEVED
Transfer of the Moscow showroom to new premises SCHEDULED FOR 2017
Creation of a new gatehouse at the Mordano plantOBJECTIVE POSTPONED TO GIVE PRIORITY TO THE CONSTRUCTION OF THE NEW FACTORY
Introduction of ERP system at Florim USA OBJECTIVE ACHIEVED
Installation of a new spray dryer and raw material handling system at Florim USA
OBJECTIVE ACHIEVED
Economic Responsibility
Renewal of certification of the Florim environmental and energy management system
OBJECTIVE ACHIEVED
Award of new certifications for collections manufactured with a high recycled material content
OBJECTIVE ACHIEVED
Continuation of work to reduce environmental impacts at Mordano especially with the reduction of energy costs
OBJECTIVE ACHIEVED
Continuation of the work to remove asbestos cement roofing materials at the Mordano plant
OBJECTIVE ACHIEVED
Expansion of the system which conveys rainwater to the treatment plant OBJECTIVE ACHIEVED
Reduction of the noise emissions of the air filtering systems OBJECTIVE ACHIEVED
Increase of recycling targets through constant awareness-raising amongst all staff and optimisation of recycling facilities
OBJECTIVE ACHIEVED
Continuation of replacement of the diesel forklift trucks for use on outdoor yards with electric vehicles
OBJECTIVE ACHIEVED
Environmental Responsibility
Running of fourth edition of Master Florim course with new procedures OBJECTIVE ACHIEVED
Creation of an internal refreshment area for the Fiorano office staff OBJECTIVE ACHIEVED
Improvement of corporate welfare through the activation of new free services and discounts tailored to employees needs
OBJECTIVE ACHIEVED
Continuation of the health meetings for the local community in association with Ospedale di Sassuolo Spa
OBJECTIVE ACHIEVED
Organization of new community events at Florim Gallery OBJECTIVE ACHIEVED
Organization of Florim Family Day 2016 A PARTY WAS ORGANISED FOR EMPLOYEES
Social Responsibility
2016 Sustainability Report36
The targets we set for ourselvesWe aim to achieve the following objectives in 2017
Economic Responsibility
Construction of a new factory at Mordano to produce large slabs
Launch of the project to unite the Florim spa sales organizations
Total restyling of the corporate and brand Internet sites
Launch of the HUB project - Intranet CRM Marketing Automation
New plants at Florim USA a press two sorting lines a polishing and rectifying line
New working spaces and cloakrooms for technical staff at the American plant
Environmental Responsibility
Purchase of a new cogenerator for the Mordano plant
Introduction of a new rainwater collection system at Fiorano
Land reclamation project involving covering of the Rio Spezzano stream at Fiorano
Implementation of new software for continual monitoring of energy impacts at Fiorano
Modernisation of the compressor room to improve energy impacts at Mordano
Increase of recycling targets through constant awareness-raising amongst all staff and optimisation of recycling facilities
Continuation of replacement of the diesel forklift trucks for use on outdoor yards with electric vehicles
Social Responsibility
Improvement of corporate welfare through the activation of new free services and discounts tailored to employees needs
Continuation of the health meetings for the local community in association with Ospedale di Sassuolo Spa
Organization of new community events at Florim Gallery
Organization of a new event for Florim spa employees
New offices for hospitality and events staff at Fiorano
2016 Sustainability Report 37
FLORIM USA
Profile and Economic ResponsibilityFlorim USA with registered office at Clarksville - Tennessee - and its subsidiary Florim Solution Inc have been part of the Florim Group since 2000 The Florim USA manufacturing plant one of the largest most technologically advanced in the United States produces porcelain stoneware tiles for the residential market and undertakes commercial projects in North America During the last few years Florim USA has implemented a growth and process optimization strategy which has generated significant technological progress with more innovations planned for the future The strategy adopted will put Florim USA at the worldwide state of the art in porcelain stoneware tile manufacture
In 2016 of the 18 million USD invested 147 was allocated for installation of a latest-generation raw material handling system and a large spray-dryer with an innovative sorting system Improvements were made to other parts of the process to increase their efficiency leading to a further reduction in emissions and scrap rates Additional investments are planned during 2017 to continue this dual trend of rising production with mitigation of environmental impact
The new Florim Flagship Store in New York (152 Madison Avenue 32nd Street)
2016 Sustainability Report38
Environmental ResponsibilityFlorim USA implements the same environmental policy as Florim and is committed to achieving the following objectives
bull reduction of the energy used in the production processbull improvement of the waste management process with a focus on recovery and reusebull introduction of new more eco-efficient technologiesbull adoption of integrated management systems
Florim USA has been pursuing a strategy of careful management of its operations and environmental impact for a number of years Here we summarise the main actions taken and the results achieved in 2016
bull installation of a latest-generation spray-dryer in 2016bull installation of an innovative raw material handling system in 2016bull 100 recycling of wastewater within the processbull optimisation of the management of water bottles with elimination of about 34200 of them per annumbull reuse of almost all production scrap (+99)bull 157000 kg of cardboard recycled in 2016bull award of two different types of product certificationbull 9300 kg of plastic recycledbull recycling of 17 complete trucks of pallets
Environmental Projects and Awards
Florim USA has received Clarksville Montgomery County Green Certification (CMCGC) CMCGC is a program designed to help companies learn and implement best practices in the area of environmental stewardship to sustain the local communityrsquos resources through a series of free workshops taught by local environmental specialists Since 2014 Florim has allocated some of its Environment Managers time for the running of these workshopsFlorim USA earned this green company certification thanks to a large number of projects first and foremost the one which eliminated the use of disposable water bottles replaced with individual reusable bottles provided by the company and a series of fill-up stations About 34200 bottles are removed from the waste cycle every year
During the latest phase of its plant optimization Florim USA has implemented a thorough construction material reuse policy In the various stages of demolition of the old plants including the old storage silos the concrete debris was recovered and reused in other construction worksThis project alone generated 11500 tons of recycled aggregate as well as several hundred tonnes of metal sold to a recycling firm
Environmental management system and eco-compatible products
Florim USArsquos products help builders and designers to meet the requirements for sustainable buildings as defined by the United States Green Building Council (USGBC) through the LEED Green Building Rating System This protocol evaluates and certifies the environmental sustainability of a building as a unit from its design to its day to day management To gain LEED credits many of the Florim USA product lines contain a significant percentage of recycled material (40 or more)This feature contributes to an increase in the LEED score in the projects where these products are installed In 2014 Florim USA together with a large number of other US tile manufacturers and the Tile Council of North America drew up a type III environmental product declaration (EPD) certified under the ISO 14025 standard This ceramic tile life-cycle analysis enables Florim USA products to gain LEED points under the new LEED v4 protocol
2016 Sustainability Report 39
Water use (gallonsper million square feetof finished tiles)
208137 216246 204962 195280 194268
Energy use
2012 2013 2014 2015 2016
Cubic feet of natural gas per million square feet of finished tiles 9343383 9149721 8331170 8390503 8380000
kWh per million square feet of finished tiles 510972 491171 450594 465976 490300
Emissions
Particulate material lt 21024 tonnes per annum
SO2 (sulphur dioxide) lt 1674 tonnes per annum
VOC (volatile organic compounds) lt 1245 tonnes per annum
NOx (oxides of nitrogen) lt 1501 tonnes per annum
Environmental performance indicators ndash summary
The following are the main environmental indicators related to the impact and performance of Florim USA during 2016
Pre-consumer recycled material
Its internal material recycling processes enable the company to minimise its environmental impact since most of the material which would otherwise be sent to landfills or other waste treatment centers is reusedbull Wastewater is entirely recycled within the production process without any discharge into the municipal drainsbull The material in the collection bags from the tile body and glaze preparation areas the press and glaze application is entirely recycled within the processbull All scrap fired tiles are entirely recycled within the processbull 157000 kg of cardboard was sold to an external recycled material dealerbull 17 trucks of unusable wooden pallets were sold to a pallet regeneration companybull About 9300 kg of waste shrink-wrap plastic film was recovered and recycled
Post-consumer recycled material
About 82000 kg of glass was removed from the flow of waste destined for the local landfill and recycled within the process Florim USA has signed an agreement with the local landfill for consignment of all the glass it handles which is collected and set aside for recycling
Water use disposal and reuse
The water used during the production process is recycled continually therefore no water is discharged into the municipal drains
The 2016 emissions figures are in line with those for previous years well below the standards laid down
Water use 2012 2013 2014 2015 2016
Water use (gallons per million square feet of finished tiles) 216246 204962 195280 194268 203928
2016 Sustainability Report40
Social Responsibility
Employees
The Florim USA workforce comprises 348 staff employed at the production site the Clarksville and Nashville outlet stores and the Florim Solution offices Of the 348 employees 273 are blue-collar workers and 75 office staff 5 employees are Italians on secondment to the United States Florim USA offers a number of benefits to full time employeesbull health and dental care insurancebull Vision insurancebull life insurance for employees and optionally for family membersbull temporary and permanent disability supportbull employee pension plan
2012 2013 2014 2015 2016
Workplace injuries 50 41 22 29 27
The Employee Assistance Program (EAP) also offers support to employees and their families in the event of psychological difficulty or other problems that can have a negative impact on their quality of life Florim USA supports all the costs of the program
Equal opportunities
Florim USA provides equal opportunities in all employment practices to all qualified employees and applicants regardless of race colour religion gender national origin age disability or membership of the armed forces or any other category protected by federal state or local laws
Health and safety
FLORIM USA is committed to ensuring a safe healthy workplace for all employees It therefore replaces old and obsolete equipment with new technologically more modern machinery and updates safety plans as new information gradually becomes availableAs well as an internal supervisor Florim USA has also appointed a health and safety committee which constantly monitors the plans effectiveness and makes any changes requiredThere are currently 20 plant employees who hold CPRfirst aid qualifications They occupy a variety of positions and work different shifts within the plant and have volunteered to attend training courses sponsored by the company for the award of these qualifications
Training
In 2016 every Florim USA employee attended an average of about 25 hours of training The training provided covered the operating procedures for the new equipment the main safety plans and the procedures for use of existing equipment for new employeesAll new staff undergo specific training for their department focusing on the safety-related aspects of the department concerned as well as more generalized safety training
Some of these themes includebull safe correct use of forklift trucksbull training on work in confined spacesbull shutdownwarning procedures and safe electrical practicesbull safe lifting procedures
2016 Sustainability Report 41
Florim USA ndash (Clarksville Tennessee)
For employees wishing to continue their education Florim USA offers assistance through the Educational Assistance Program It provides aid with the cost of education and textbooks and is available for any employee wishing to study for a technical qualification a diploma or a degreeThe plant staff training and education plan also includes various training schemes at Florim Italy where employees are instructed in the use of new equipment before it is installed at the American plantThroughout 2016 Florim USA will continue to provide a free e-learning course on its website for architects engineers and contractors (AEC) to improve their knowledge of sustainable porcelain stoneware tiles
Employee welfare activities
Florim USA employee picnic - In 2016 the company once again held its annual picnic for employees offering them a wide variety of foods games activities and live shows in an event which provided an unforgettable days enjoyment Within the event participants received prizes in the form of vouchers and gifts
Employee anniversary dinner - 2016 again saw the usual dinner to honour Florim USA employees with 5 10 15 20 or more years of service A special evening event was held in the presence of the Chairman and the other managers to celebrate the loyalty and hard work these employees have contributed during their careers with the firm
2016 Sustainability Report42
Local Community
During 2016 Florim USA continued to provide its support to a number of projects in its local areaSome of the main projects include
Scholarships - As part of its work to support the local community Florim has an established scheme which awards scholarships to deserving students at the Austin Peay State University in memory of Florim Group founder Giovanni Lucchese In December 2016 a delegation of Florim representatives attended a scholarship presentation lunch at the Austin Peay State University hosted by the President of the University
Montgomery County Green Certification Program - Florim USA staff actively participate in the Montgomery County Green Certification Program which aims to help companies learn and implement best practices with regard to safeguarding the environment and environmental resources
Donations - In 2016 the company again made a large number of donationsbull book collection for the Austin Peay State University Employees made a generous donation of used books in good condition for children and young people of the APSU in the hope of further promoting the education of future generationsbull to Community Cares the national organization that promotes the acceptance and social inclusion of individuals with Downs Syndromebull to the Aspire Clarksville Foundation a 501(c)(3) charitable foundation whose mission is to continuously improve the economy and the livability (quality of life) of the community by attracting significant capital investment and expansion by businesses and corporations thereby creating better opportunities and higher paying jobs for residentsbull to the Alzheimerrsquos Association a non-profit voluntary organization dedicated to the care and support of Alzheimers Disease sufferers and research into the condition Its aim is to eliminate the disease through the advancement of research to provide and enhance care and support for all affected and to reduce the risk of dementia through the promotion of brain health
Other activities - Every year Florim USA participates in the United Way Drive initiative to support local non-profit organizations which provide economic assistance and psychological support to persons in difficulty
Florim USA provides regular support to the Salvation Army by collecting canned foods for persons in needIn 2016 the company again organised a canned food collection for Manna Cafeacute in Clarksville TN Manna Cafeacute is a local non-profit organization based in Middle Tennessee with the primary mission of meeting peoples fundamental need for food before encouraging them to permanently change their lives for the better More than 15 of the population in Montgomery County are affected by food insecurity (about 28000 people) The percentage of children affected is about 215 a third of whom are excluded by income from federal programs such as free school mealsFinally donations were made tobull American Lung Association the leading organization working to save lives by improving lung health and preventing lung disease through research and educationbull Cheer for a Cure an organization that gives money directly to afflicting families who have a loved one suffering from cancer and need assistance to alleviate the added financial stressbull Habitat for Humanity Since 1992 Habitat for Humanity in Montgomery County Tennessee has worked with 93 low-income families with more than 210 children to revitalise various parts of Clarksville-Montgomery County by building new homes
2016 Sustainability Report 43
Quality SystemFlorim USA works under a Quality System certified to UNI EN ISO 9001 standards The following are some of the figures in brief
Objective Indicator 2012 2013 2014 2015 2016
Optimisation of control of the production process
Percentage of First Grade Product ()
932 917 940 949 9510
Quality rate () 883 857 893 906 909
Scrap rate () 56 65 48 45 45
KeyPercentage of first grade product ratio between square feet of first grade material and total square feet transferred to stockQuality rate ratio between square feet of first grade material transferred to stock and square feet pressedScrap rate ratio between square feet pressed and square feet of product actually transferred to stock
Other ActivitiesFlorim USA and trade shows
In 2016 Florim USA participated at a number of shows and events including Coverings the AIA Tennessee Convention Hardscape North America Total Solutions Plus Neocon International Pool - Spa and Patio Expo These events targeted at the various categories of industry professionals such as dealers and designers gave Florim USA the opportunity to present its new range of indoor and outdoor products
Design Center
In December 2015 Florim USA opened a design center showroom in Nashville (TN) in a strategic location close to the airport and the city center With a spacious area to host individual CEU presentations and workshops this design center has the potential to be a major resource for local architects In 2016 it was also awarded the ldquoOutstanding Boothrdquo booth prize at the 33rd edition of the Annual Home Decorating and Remodeling Show The location is the ideal place for sharing ideas finding inspiration and putting professionals and architects in touch with each other
Florim Nashville Design Center
2016 Sustainability Report44
GRI International Sustainability Indicators SDGsThe information below illustrates the correspondence between the Florim (Italian companies) 2016 Sustainability Report the GRI-G4 guidelines and the icons of the Sustainable Development Goals (SDGs) definitively adopted by the United NationsA description of the SDGs is available at wwwglobalcompactnetworkorg
GRI indicators
Description Page Reference to SDGs
1 Strategy and Analysis
G4-1 Statement from the most senior decision-maker of the organization 5
2 Organization profile
G4-3 Name of the organization 2
G4-4 Primary brands products andor services 9
G4-5 Location of the organizations headquarters 9
G4-6 Number and names of the countries where the organization operates 9
G4-7 Nature of ownership and legal form 14
G4-8 Markets served 9
G4-9 Scale of the organization 8 8
G4-10 Significant changes regarding size structure or ownership 8
G4-11 Employees covered by National Collective Bargaining Agreement 27
G4-12 Describe the supply chain 16
G4-13Significant changes regarding the organizationrsquos size structure ownership or its supply chain
Reporting process
launched
G4-14 Precautionary principle 22
G4-15 List of external commitments in which the company is involved 22 32 33
G4-16 Associations or interest groups in which the company is involvedwwwflorimit gt
about us gt partnerships
3 Identified material aspects and boundaries
G4-18 Process used to define the report content 6
G4-19 Material aspects 16
G4-20 Boundaries of each material aspect 6
G4-21 Boundaries of each material aspect outside the organizationPartial reporting
(pages 6 16)
G4-22 Explanation of the effect of any restatements of information provided in previous reports 6
G4-23Significant changes from previous reporting periods in the scope boundaries or measurement methods
6
3 Stakeholder engagement
G4-24 List of stakeholders 15
G4-25 Identification of stakeholders 15
G4-26 Stakeholder engagement 6 16
G4-27 Key topics and concerns that have been raised through stakeholder engagement 16
4 Boundary of the Report
G4-28 Reporting period 6
G4-29 Date of publication 2
G4-30 Reporting cycle 6
G4-31 Contacts and addresses for additional information 46
5 GRI Content Index
G4-32 Reporting option chosen 6 7
G4-33 External assurance of ReportThe Report is not
externally assured
2016 Sustainability Report 45
GRI indicators
Description Page Reference to SDGs
6 Governance
G4-34 Governance structure 14
7 Ethics and integrity
G4-56 Values principles standards and norms of behavior 13 16
Economic performance indicators
EC1 Direct economic value generated and distributed 19 25789
EC5 Wages 27 158
EC7 Development and impact of infrastructure investments and services supported 23 24 31 257911
Environmental performance indicators
G4-EN2 Percentage of materials used that are recycled input materials 17 22 23 812
G4-EN3 Energy consumption within the organization 24 781213
G4-EN6 Reduction of energy consumption 17 24 71213
G4-EN7 Reductions in energy requirements of products and servicesPartial reporting
(page 22)71213
G4-EN8 Total water withdrawal by source 17 23 6
G4-EN10 Percentage and total volume of water recycled and reused 17 21 23 612
G4-EN11 Biodiversity 23 615
G4-EN15 Total indirect greenhouse gas emissions by weight 25 3121315
G4-EN16 Total indirect greenhouse gas emissions by weight 25 3121315
G4-EN19 Reduction of greenhouse gas emissions 8 24 1315
G4-EN21 NOx SOx and other significant air emissions 25 31215
G4-EN22 Total water discharge by quality and destination 23 6
G4-EN23 Total weight of waste by type 17 22 3612
G4-EN27 Impact mitigation of environmental impacts of products and services 23 68121315
G4-EN29 Monetary value of significant fines 22 16
G4-EN30 Significant environmental impacts of transporting products and goodsmaterialsPartial reporting
(page 25)111213
Social performance indicators
G4-LA1 Total number and rates of new employee hires and employee turnoverPartial reporting
(pages 17 27)8
G4-LA6 Workplace injury ratesPartial reporting
(page 17)38
G4-LA9 Average hours of training per year per employee 28 48
G4-LA12Composition of governance bodies and breakdown of employees according to gender age group etc
27 58
G4-LA13 Ratio of basic salary and total remuneration of women to men 27 5810
Society
G4-SO1 Operations with local community engagement 12 31 16
G4-SO3 Operations assessed for risks related to corruptionPartial reporting
(page 13)
Product responsibility
G4-PR1 Assessment of health and safety impacts for improvement 23 32
G4-PR3 Type of information about products and services required by the procedures 32 12
G4-PR5 Proceedings relating to customer satisfaction including surveys conducted to measure it 33
G4-PR6 Sale of banned or disputed products 32
G4-PR8 Number of substantiated complaints regarding breaches of privacy 32 16
2016 Sustainability Report46
Your Assessment
You are kindly requested to take a few minutes of your time to give us your assessment and any suggestions to enable us to improve future editions of our Sustainability Report
Click here to send us your feedback
To keep up to date with our business
Spazio CEDIT - interior (Milan)
wwwflorimiten
Florim Ceramiche
Florim4Architects
Florim_ceramiche
Florim Ceramiche spa
Florim Ceramiche
Florim Ceramiche
For any further information please feel free to contact our communications department comunicazioneflorimit
2016 Sustainability Report 47
Premio Lucchese - Florim Gallery (Fiorano Modenese - Modena Italy)
Intrapresaelig Guggenheim Collection - Massimo Bottura in Florim Gallery (Fiorano Modenese - Modena Italy)
Panathlon Christmas Gala - Florim Gallery (Fiorano Modenese - Modena Italy)
2016 Sustainability Report48
White Christmas Party - Florim Gallery (Fiorano Modenese - Modena Italy)
Cersaie - Mario Biondi in Florim Gallery (Fiorano Modenese - Modena Italy)
Dal buio alla luce - Social event at Florim Gallery (Fiorano Modenese - Modena Italy)
2016 Sustainability Report 49
Florim Gallery entrance (Fiorano Modenese - MO)
2016 Sustainability Report52
Florim Ceramiche spaVia Canaletto 24 - 41042 Fiorano Modenese (Modena Italy) - Tel +39 0536 840111 - wwwflorimit
2016 Sustainability Report34
Casamood - Neutra 60 Collection
2016 Sustainability Report 35
OUR COMMITMENTS
The promises we keptIn our last Sustainability Report we committed to achieving a large number of objectives the following are the outcomes we attained
Relaunch of the ldquoCEDIT ndash Ceramiche drsquoItaliardquo brand OBJECTIVE ACHIEVED
Launch of the FLORIM stone brand OBJECTIVE ACHIEVED
Installation of a new latest-generation kiln at the Mordano plant OBJECTIVE ACHIEVED
Transfer of the Moscow showroom to new premises SCHEDULED FOR 2017
Creation of a new gatehouse at the Mordano plantOBJECTIVE POSTPONED TO GIVE PRIORITY TO THE CONSTRUCTION OF THE NEW FACTORY
Introduction of ERP system at Florim USA OBJECTIVE ACHIEVED
Installation of a new spray dryer and raw material handling system at Florim USA
OBJECTIVE ACHIEVED
Economic Responsibility
Renewal of certification of the Florim environmental and energy management system
OBJECTIVE ACHIEVED
Award of new certifications for collections manufactured with a high recycled material content
OBJECTIVE ACHIEVED
Continuation of work to reduce environmental impacts at Mordano especially with the reduction of energy costs
OBJECTIVE ACHIEVED
Continuation of the work to remove asbestos cement roofing materials at the Mordano plant
OBJECTIVE ACHIEVED
Expansion of the system which conveys rainwater to the treatment plant OBJECTIVE ACHIEVED
Reduction of the noise emissions of the air filtering systems OBJECTIVE ACHIEVED
Increase of recycling targets through constant awareness-raising amongst all staff and optimisation of recycling facilities
OBJECTIVE ACHIEVED
Continuation of replacement of the diesel forklift trucks for use on outdoor yards with electric vehicles
OBJECTIVE ACHIEVED
Environmental Responsibility
Running of fourth edition of Master Florim course with new procedures OBJECTIVE ACHIEVED
Creation of an internal refreshment area for the Fiorano office staff OBJECTIVE ACHIEVED
Improvement of corporate welfare through the activation of new free services and discounts tailored to employees needs
OBJECTIVE ACHIEVED
Continuation of the health meetings for the local community in association with Ospedale di Sassuolo Spa
OBJECTIVE ACHIEVED
Organization of new community events at Florim Gallery OBJECTIVE ACHIEVED
Organization of Florim Family Day 2016 A PARTY WAS ORGANISED FOR EMPLOYEES
Social Responsibility
2016 Sustainability Report36
The targets we set for ourselvesWe aim to achieve the following objectives in 2017
Economic Responsibility
Construction of a new factory at Mordano to produce large slabs
Launch of the project to unite the Florim spa sales organizations
Total restyling of the corporate and brand Internet sites
Launch of the HUB project - Intranet CRM Marketing Automation
New plants at Florim USA a press two sorting lines a polishing and rectifying line
New working spaces and cloakrooms for technical staff at the American plant
Environmental Responsibility
Purchase of a new cogenerator for the Mordano plant
Introduction of a new rainwater collection system at Fiorano
Land reclamation project involving covering of the Rio Spezzano stream at Fiorano
Implementation of new software for continual monitoring of energy impacts at Fiorano
Modernisation of the compressor room to improve energy impacts at Mordano
Increase of recycling targets through constant awareness-raising amongst all staff and optimisation of recycling facilities
Continuation of replacement of the diesel forklift trucks for use on outdoor yards with electric vehicles
Social Responsibility
Improvement of corporate welfare through the activation of new free services and discounts tailored to employees needs
Continuation of the health meetings for the local community in association with Ospedale di Sassuolo Spa
Organization of new community events at Florim Gallery
Organization of a new event for Florim spa employees
New offices for hospitality and events staff at Fiorano
2016 Sustainability Report 37
FLORIM USA
Profile and Economic ResponsibilityFlorim USA with registered office at Clarksville - Tennessee - and its subsidiary Florim Solution Inc have been part of the Florim Group since 2000 The Florim USA manufacturing plant one of the largest most technologically advanced in the United States produces porcelain stoneware tiles for the residential market and undertakes commercial projects in North America During the last few years Florim USA has implemented a growth and process optimization strategy which has generated significant technological progress with more innovations planned for the future The strategy adopted will put Florim USA at the worldwide state of the art in porcelain stoneware tile manufacture
In 2016 of the 18 million USD invested 147 was allocated for installation of a latest-generation raw material handling system and a large spray-dryer with an innovative sorting system Improvements were made to other parts of the process to increase their efficiency leading to a further reduction in emissions and scrap rates Additional investments are planned during 2017 to continue this dual trend of rising production with mitigation of environmental impact
The new Florim Flagship Store in New York (152 Madison Avenue 32nd Street)
2016 Sustainability Report38
Environmental ResponsibilityFlorim USA implements the same environmental policy as Florim and is committed to achieving the following objectives
bull reduction of the energy used in the production processbull improvement of the waste management process with a focus on recovery and reusebull introduction of new more eco-efficient technologiesbull adoption of integrated management systems
Florim USA has been pursuing a strategy of careful management of its operations and environmental impact for a number of years Here we summarise the main actions taken and the results achieved in 2016
bull installation of a latest-generation spray-dryer in 2016bull installation of an innovative raw material handling system in 2016bull 100 recycling of wastewater within the processbull optimisation of the management of water bottles with elimination of about 34200 of them per annumbull reuse of almost all production scrap (+99)bull 157000 kg of cardboard recycled in 2016bull award of two different types of product certificationbull 9300 kg of plastic recycledbull recycling of 17 complete trucks of pallets
Environmental Projects and Awards
Florim USA has received Clarksville Montgomery County Green Certification (CMCGC) CMCGC is a program designed to help companies learn and implement best practices in the area of environmental stewardship to sustain the local communityrsquos resources through a series of free workshops taught by local environmental specialists Since 2014 Florim has allocated some of its Environment Managers time for the running of these workshopsFlorim USA earned this green company certification thanks to a large number of projects first and foremost the one which eliminated the use of disposable water bottles replaced with individual reusable bottles provided by the company and a series of fill-up stations About 34200 bottles are removed from the waste cycle every year
During the latest phase of its plant optimization Florim USA has implemented a thorough construction material reuse policy In the various stages of demolition of the old plants including the old storage silos the concrete debris was recovered and reused in other construction worksThis project alone generated 11500 tons of recycled aggregate as well as several hundred tonnes of metal sold to a recycling firm
Environmental management system and eco-compatible products
Florim USArsquos products help builders and designers to meet the requirements for sustainable buildings as defined by the United States Green Building Council (USGBC) through the LEED Green Building Rating System This protocol evaluates and certifies the environmental sustainability of a building as a unit from its design to its day to day management To gain LEED credits many of the Florim USA product lines contain a significant percentage of recycled material (40 or more)This feature contributes to an increase in the LEED score in the projects where these products are installed In 2014 Florim USA together with a large number of other US tile manufacturers and the Tile Council of North America drew up a type III environmental product declaration (EPD) certified under the ISO 14025 standard This ceramic tile life-cycle analysis enables Florim USA products to gain LEED points under the new LEED v4 protocol
2016 Sustainability Report 39
Water use (gallonsper million square feetof finished tiles)
208137 216246 204962 195280 194268
Energy use
2012 2013 2014 2015 2016
Cubic feet of natural gas per million square feet of finished tiles 9343383 9149721 8331170 8390503 8380000
kWh per million square feet of finished tiles 510972 491171 450594 465976 490300
Emissions
Particulate material lt 21024 tonnes per annum
SO2 (sulphur dioxide) lt 1674 tonnes per annum
VOC (volatile organic compounds) lt 1245 tonnes per annum
NOx (oxides of nitrogen) lt 1501 tonnes per annum
Environmental performance indicators ndash summary
The following are the main environmental indicators related to the impact and performance of Florim USA during 2016
Pre-consumer recycled material
Its internal material recycling processes enable the company to minimise its environmental impact since most of the material which would otherwise be sent to landfills or other waste treatment centers is reusedbull Wastewater is entirely recycled within the production process without any discharge into the municipal drainsbull The material in the collection bags from the tile body and glaze preparation areas the press and glaze application is entirely recycled within the processbull All scrap fired tiles are entirely recycled within the processbull 157000 kg of cardboard was sold to an external recycled material dealerbull 17 trucks of unusable wooden pallets were sold to a pallet regeneration companybull About 9300 kg of waste shrink-wrap plastic film was recovered and recycled
Post-consumer recycled material
About 82000 kg of glass was removed from the flow of waste destined for the local landfill and recycled within the process Florim USA has signed an agreement with the local landfill for consignment of all the glass it handles which is collected and set aside for recycling
Water use disposal and reuse
The water used during the production process is recycled continually therefore no water is discharged into the municipal drains
The 2016 emissions figures are in line with those for previous years well below the standards laid down
Water use 2012 2013 2014 2015 2016
Water use (gallons per million square feet of finished tiles) 216246 204962 195280 194268 203928
2016 Sustainability Report40
Social Responsibility
Employees
The Florim USA workforce comprises 348 staff employed at the production site the Clarksville and Nashville outlet stores and the Florim Solution offices Of the 348 employees 273 are blue-collar workers and 75 office staff 5 employees are Italians on secondment to the United States Florim USA offers a number of benefits to full time employeesbull health and dental care insurancebull Vision insurancebull life insurance for employees and optionally for family membersbull temporary and permanent disability supportbull employee pension plan
2012 2013 2014 2015 2016
Workplace injuries 50 41 22 29 27
The Employee Assistance Program (EAP) also offers support to employees and their families in the event of psychological difficulty or other problems that can have a negative impact on their quality of life Florim USA supports all the costs of the program
Equal opportunities
Florim USA provides equal opportunities in all employment practices to all qualified employees and applicants regardless of race colour religion gender national origin age disability or membership of the armed forces or any other category protected by federal state or local laws
Health and safety
FLORIM USA is committed to ensuring a safe healthy workplace for all employees It therefore replaces old and obsolete equipment with new technologically more modern machinery and updates safety plans as new information gradually becomes availableAs well as an internal supervisor Florim USA has also appointed a health and safety committee which constantly monitors the plans effectiveness and makes any changes requiredThere are currently 20 plant employees who hold CPRfirst aid qualifications They occupy a variety of positions and work different shifts within the plant and have volunteered to attend training courses sponsored by the company for the award of these qualifications
Training
In 2016 every Florim USA employee attended an average of about 25 hours of training The training provided covered the operating procedures for the new equipment the main safety plans and the procedures for use of existing equipment for new employeesAll new staff undergo specific training for their department focusing on the safety-related aspects of the department concerned as well as more generalized safety training
Some of these themes includebull safe correct use of forklift trucksbull training on work in confined spacesbull shutdownwarning procedures and safe electrical practicesbull safe lifting procedures
2016 Sustainability Report 41
Florim USA ndash (Clarksville Tennessee)
For employees wishing to continue their education Florim USA offers assistance through the Educational Assistance Program It provides aid with the cost of education and textbooks and is available for any employee wishing to study for a technical qualification a diploma or a degreeThe plant staff training and education plan also includes various training schemes at Florim Italy where employees are instructed in the use of new equipment before it is installed at the American plantThroughout 2016 Florim USA will continue to provide a free e-learning course on its website for architects engineers and contractors (AEC) to improve their knowledge of sustainable porcelain stoneware tiles
Employee welfare activities
Florim USA employee picnic - In 2016 the company once again held its annual picnic for employees offering them a wide variety of foods games activities and live shows in an event which provided an unforgettable days enjoyment Within the event participants received prizes in the form of vouchers and gifts
Employee anniversary dinner - 2016 again saw the usual dinner to honour Florim USA employees with 5 10 15 20 or more years of service A special evening event was held in the presence of the Chairman and the other managers to celebrate the loyalty and hard work these employees have contributed during their careers with the firm
2016 Sustainability Report42
Local Community
During 2016 Florim USA continued to provide its support to a number of projects in its local areaSome of the main projects include
Scholarships - As part of its work to support the local community Florim has an established scheme which awards scholarships to deserving students at the Austin Peay State University in memory of Florim Group founder Giovanni Lucchese In December 2016 a delegation of Florim representatives attended a scholarship presentation lunch at the Austin Peay State University hosted by the President of the University
Montgomery County Green Certification Program - Florim USA staff actively participate in the Montgomery County Green Certification Program which aims to help companies learn and implement best practices with regard to safeguarding the environment and environmental resources
Donations - In 2016 the company again made a large number of donationsbull book collection for the Austin Peay State University Employees made a generous donation of used books in good condition for children and young people of the APSU in the hope of further promoting the education of future generationsbull to Community Cares the national organization that promotes the acceptance and social inclusion of individuals with Downs Syndromebull to the Aspire Clarksville Foundation a 501(c)(3) charitable foundation whose mission is to continuously improve the economy and the livability (quality of life) of the community by attracting significant capital investment and expansion by businesses and corporations thereby creating better opportunities and higher paying jobs for residentsbull to the Alzheimerrsquos Association a non-profit voluntary organization dedicated to the care and support of Alzheimers Disease sufferers and research into the condition Its aim is to eliminate the disease through the advancement of research to provide and enhance care and support for all affected and to reduce the risk of dementia through the promotion of brain health
Other activities - Every year Florim USA participates in the United Way Drive initiative to support local non-profit organizations which provide economic assistance and psychological support to persons in difficulty
Florim USA provides regular support to the Salvation Army by collecting canned foods for persons in needIn 2016 the company again organised a canned food collection for Manna Cafeacute in Clarksville TN Manna Cafeacute is a local non-profit organization based in Middle Tennessee with the primary mission of meeting peoples fundamental need for food before encouraging them to permanently change their lives for the better More than 15 of the population in Montgomery County are affected by food insecurity (about 28000 people) The percentage of children affected is about 215 a third of whom are excluded by income from federal programs such as free school mealsFinally donations were made tobull American Lung Association the leading organization working to save lives by improving lung health and preventing lung disease through research and educationbull Cheer for a Cure an organization that gives money directly to afflicting families who have a loved one suffering from cancer and need assistance to alleviate the added financial stressbull Habitat for Humanity Since 1992 Habitat for Humanity in Montgomery County Tennessee has worked with 93 low-income families with more than 210 children to revitalise various parts of Clarksville-Montgomery County by building new homes
2016 Sustainability Report 43
Quality SystemFlorim USA works under a Quality System certified to UNI EN ISO 9001 standards The following are some of the figures in brief
Objective Indicator 2012 2013 2014 2015 2016
Optimisation of control of the production process
Percentage of First Grade Product ()
932 917 940 949 9510
Quality rate () 883 857 893 906 909
Scrap rate () 56 65 48 45 45
KeyPercentage of first grade product ratio between square feet of first grade material and total square feet transferred to stockQuality rate ratio between square feet of first grade material transferred to stock and square feet pressedScrap rate ratio between square feet pressed and square feet of product actually transferred to stock
Other ActivitiesFlorim USA and trade shows
In 2016 Florim USA participated at a number of shows and events including Coverings the AIA Tennessee Convention Hardscape North America Total Solutions Plus Neocon International Pool - Spa and Patio Expo These events targeted at the various categories of industry professionals such as dealers and designers gave Florim USA the opportunity to present its new range of indoor and outdoor products
Design Center
In December 2015 Florim USA opened a design center showroom in Nashville (TN) in a strategic location close to the airport and the city center With a spacious area to host individual CEU presentations and workshops this design center has the potential to be a major resource for local architects In 2016 it was also awarded the ldquoOutstanding Boothrdquo booth prize at the 33rd edition of the Annual Home Decorating and Remodeling Show The location is the ideal place for sharing ideas finding inspiration and putting professionals and architects in touch with each other
Florim Nashville Design Center
2016 Sustainability Report44
GRI International Sustainability Indicators SDGsThe information below illustrates the correspondence between the Florim (Italian companies) 2016 Sustainability Report the GRI-G4 guidelines and the icons of the Sustainable Development Goals (SDGs) definitively adopted by the United NationsA description of the SDGs is available at wwwglobalcompactnetworkorg
GRI indicators
Description Page Reference to SDGs
1 Strategy and Analysis
G4-1 Statement from the most senior decision-maker of the organization 5
2 Organization profile
G4-3 Name of the organization 2
G4-4 Primary brands products andor services 9
G4-5 Location of the organizations headquarters 9
G4-6 Number and names of the countries where the organization operates 9
G4-7 Nature of ownership and legal form 14
G4-8 Markets served 9
G4-9 Scale of the organization 8 8
G4-10 Significant changes regarding size structure or ownership 8
G4-11 Employees covered by National Collective Bargaining Agreement 27
G4-12 Describe the supply chain 16
G4-13Significant changes regarding the organizationrsquos size structure ownership or its supply chain
Reporting process
launched
G4-14 Precautionary principle 22
G4-15 List of external commitments in which the company is involved 22 32 33
G4-16 Associations or interest groups in which the company is involvedwwwflorimit gt
about us gt partnerships
3 Identified material aspects and boundaries
G4-18 Process used to define the report content 6
G4-19 Material aspects 16
G4-20 Boundaries of each material aspect 6
G4-21 Boundaries of each material aspect outside the organizationPartial reporting
(pages 6 16)
G4-22 Explanation of the effect of any restatements of information provided in previous reports 6
G4-23Significant changes from previous reporting periods in the scope boundaries or measurement methods
6
3 Stakeholder engagement
G4-24 List of stakeholders 15
G4-25 Identification of stakeholders 15
G4-26 Stakeholder engagement 6 16
G4-27 Key topics and concerns that have been raised through stakeholder engagement 16
4 Boundary of the Report
G4-28 Reporting period 6
G4-29 Date of publication 2
G4-30 Reporting cycle 6
G4-31 Contacts and addresses for additional information 46
5 GRI Content Index
G4-32 Reporting option chosen 6 7
G4-33 External assurance of ReportThe Report is not
externally assured
2016 Sustainability Report 45
GRI indicators
Description Page Reference to SDGs
6 Governance
G4-34 Governance structure 14
7 Ethics and integrity
G4-56 Values principles standards and norms of behavior 13 16
Economic performance indicators
EC1 Direct economic value generated and distributed 19 25789
EC5 Wages 27 158
EC7 Development and impact of infrastructure investments and services supported 23 24 31 257911
Environmental performance indicators
G4-EN2 Percentage of materials used that are recycled input materials 17 22 23 812
G4-EN3 Energy consumption within the organization 24 781213
G4-EN6 Reduction of energy consumption 17 24 71213
G4-EN7 Reductions in energy requirements of products and servicesPartial reporting
(page 22)71213
G4-EN8 Total water withdrawal by source 17 23 6
G4-EN10 Percentage and total volume of water recycled and reused 17 21 23 612
G4-EN11 Biodiversity 23 615
G4-EN15 Total indirect greenhouse gas emissions by weight 25 3121315
G4-EN16 Total indirect greenhouse gas emissions by weight 25 3121315
G4-EN19 Reduction of greenhouse gas emissions 8 24 1315
G4-EN21 NOx SOx and other significant air emissions 25 31215
G4-EN22 Total water discharge by quality and destination 23 6
G4-EN23 Total weight of waste by type 17 22 3612
G4-EN27 Impact mitigation of environmental impacts of products and services 23 68121315
G4-EN29 Monetary value of significant fines 22 16
G4-EN30 Significant environmental impacts of transporting products and goodsmaterialsPartial reporting
(page 25)111213
Social performance indicators
G4-LA1 Total number and rates of new employee hires and employee turnoverPartial reporting
(pages 17 27)8
G4-LA6 Workplace injury ratesPartial reporting
(page 17)38
G4-LA9 Average hours of training per year per employee 28 48
G4-LA12Composition of governance bodies and breakdown of employees according to gender age group etc
27 58
G4-LA13 Ratio of basic salary and total remuneration of women to men 27 5810
Society
G4-SO1 Operations with local community engagement 12 31 16
G4-SO3 Operations assessed for risks related to corruptionPartial reporting
(page 13)
Product responsibility
G4-PR1 Assessment of health and safety impacts for improvement 23 32
G4-PR3 Type of information about products and services required by the procedures 32 12
G4-PR5 Proceedings relating to customer satisfaction including surveys conducted to measure it 33
G4-PR6 Sale of banned or disputed products 32
G4-PR8 Number of substantiated complaints regarding breaches of privacy 32 16
2016 Sustainability Report46
Your Assessment
You are kindly requested to take a few minutes of your time to give us your assessment and any suggestions to enable us to improve future editions of our Sustainability Report
Click here to send us your feedback
To keep up to date with our business
Spazio CEDIT - interior (Milan)
wwwflorimiten
Florim Ceramiche
Florim4Architects
Florim_ceramiche
Florim Ceramiche spa
Florim Ceramiche
Florim Ceramiche
For any further information please feel free to contact our communications department comunicazioneflorimit
2016 Sustainability Report 47
Premio Lucchese - Florim Gallery (Fiorano Modenese - Modena Italy)
Intrapresaelig Guggenheim Collection - Massimo Bottura in Florim Gallery (Fiorano Modenese - Modena Italy)
Panathlon Christmas Gala - Florim Gallery (Fiorano Modenese - Modena Italy)
2016 Sustainability Report48
White Christmas Party - Florim Gallery (Fiorano Modenese - Modena Italy)
Cersaie - Mario Biondi in Florim Gallery (Fiorano Modenese - Modena Italy)
Dal buio alla luce - Social event at Florim Gallery (Fiorano Modenese - Modena Italy)
2016 Sustainability Report 49
Florim Gallery entrance (Fiorano Modenese - MO)
2016 Sustainability Report52
Florim Ceramiche spaVia Canaletto 24 - 41042 Fiorano Modenese (Modena Italy) - Tel +39 0536 840111 - wwwflorimit
2016 Sustainability Report 35
OUR COMMITMENTS
The promises we keptIn our last Sustainability Report we committed to achieving a large number of objectives the following are the outcomes we attained
Relaunch of the ldquoCEDIT ndash Ceramiche drsquoItaliardquo brand OBJECTIVE ACHIEVED
Launch of the FLORIM stone brand OBJECTIVE ACHIEVED
Installation of a new latest-generation kiln at the Mordano plant OBJECTIVE ACHIEVED
Transfer of the Moscow showroom to new premises SCHEDULED FOR 2017
Creation of a new gatehouse at the Mordano plantOBJECTIVE POSTPONED TO GIVE PRIORITY TO THE CONSTRUCTION OF THE NEW FACTORY
Introduction of ERP system at Florim USA OBJECTIVE ACHIEVED
Installation of a new spray dryer and raw material handling system at Florim USA
OBJECTIVE ACHIEVED
Economic Responsibility
Renewal of certification of the Florim environmental and energy management system
OBJECTIVE ACHIEVED
Award of new certifications for collections manufactured with a high recycled material content
OBJECTIVE ACHIEVED
Continuation of work to reduce environmental impacts at Mordano especially with the reduction of energy costs
OBJECTIVE ACHIEVED
Continuation of the work to remove asbestos cement roofing materials at the Mordano plant
OBJECTIVE ACHIEVED
Expansion of the system which conveys rainwater to the treatment plant OBJECTIVE ACHIEVED
Reduction of the noise emissions of the air filtering systems OBJECTIVE ACHIEVED
Increase of recycling targets through constant awareness-raising amongst all staff and optimisation of recycling facilities
OBJECTIVE ACHIEVED
Continuation of replacement of the diesel forklift trucks for use on outdoor yards with electric vehicles
OBJECTIVE ACHIEVED
Environmental Responsibility
Running of fourth edition of Master Florim course with new procedures OBJECTIVE ACHIEVED
Creation of an internal refreshment area for the Fiorano office staff OBJECTIVE ACHIEVED
Improvement of corporate welfare through the activation of new free services and discounts tailored to employees needs
OBJECTIVE ACHIEVED
Continuation of the health meetings for the local community in association with Ospedale di Sassuolo Spa
OBJECTIVE ACHIEVED
Organization of new community events at Florim Gallery OBJECTIVE ACHIEVED
Organization of Florim Family Day 2016 A PARTY WAS ORGANISED FOR EMPLOYEES
Social Responsibility
2016 Sustainability Report36
The targets we set for ourselvesWe aim to achieve the following objectives in 2017
Economic Responsibility
Construction of a new factory at Mordano to produce large slabs
Launch of the project to unite the Florim spa sales organizations
Total restyling of the corporate and brand Internet sites
Launch of the HUB project - Intranet CRM Marketing Automation
New plants at Florim USA a press two sorting lines a polishing and rectifying line
New working spaces and cloakrooms for technical staff at the American plant
Environmental Responsibility
Purchase of a new cogenerator for the Mordano plant
Introduction of a new rainwater collection system at Fiorano
Land reclamation project involving covering of the Rio Spezzano stream at Fiorano
Implementation of new software for continual monitoring of energy impacts at Fiorano
Modernisation of the compressor room to improve energy impacts at Mordano
Increase of recycling targets through constant awareness-raising amongst all staff and optimisation of recycling facilities
Continuation of replacement of the diesel forklift trucks for use on outdoor yards with electric vehicles
Social Responsibility
Improvement of corporate welfare through the activation of new free services and discounts tailored to employees needs
Continuation of the health meetings for the local community in association with Ospedale di Sassuolo Spa
Organization of new community events at Florim Gallery
Organization of a new event for Florim spa employees
New offices for hospitality and events staff at Fiorano
2016 Sustainability Report 37
FLORIM USA
Profile and Economic ResponsibilityFlorim USA with registered office at Clarksville - Tennessee - and its subsidiary Florim Solution Inc have been part of the Florim Group since 2000 The Florim USA manufacturing plant one of the largest most technologically advanced in the United States produces porcelain stoneware tiles for the residential market and undertakes commercial projects in North America During the last few years Florim USA has implemented a growth and process optimization strategy which has generated significant technological progress with more innovations planned for the future The strategy adopted will put Florim USA at the worldwide state of the art in porcelain stoneware tile manufacture
In 2016 of the 18 million USD invested 147 was allocated for installation of a latest-generation raw material handling system and a large spray-dryer with an innovative sorting system Improvements were made to other parts of the process to increase their efficiency leading to a further reduction in emissions and scrap rates Additional investments are planned during 2017 to continue this dual trend of rising production with mitigation of environmental impact
The new Florim Flagship Store in New York (152 Madison Avenue 32nd Street)
2016 Sustainability Report38
Environmental ResponsibilityFlorim USA implements the same environmental policy as Florim and is committed to achieving the following objectives
bull reduction of the energy used in the production processbull improvement of the waste management process with a focus on recovery and reusebull introduction of new more eco-efficient technologiesbull adoption of integrated management systems
Florim USA has been pursuing a strategy of careful management of its operations and environmental impact for a number of years Here we summarise the main actions taken and the results achieved in 2016
bull installation of a latest-generation spray-dryer in 2016bull installation of an innovative raw material handling system in 2016bull 100 recycling of wastewater within the processbull optimisation of the management of water bottles with elimination of about 34200 of them per annumbull reuse of almost all production scrap (+99)bull 157000 kg of cardboard recycled in 2016bull award of two different types of product certificationbull 9300 kg of plastic recycledbull recycling of 17 complete trucks of pallets
Environmental Projects and Awards
Florim USA has received Clarksville Montgomery County Green Certification (CMCGC) CMCGC is a program designed to help companies learn and implement best practices in the area of environmental stewardship to sustain the local communityrsquos resources through a series of free workshops taught by local environmental specialists Since 2014 Florim has allocated some of its Environment Managers time for the running of these workshopsFlorim USA earned this green company certification thanks to a large number of projects first and foremost the one which eliminated the use of disposable water bottles replaced with individual reusable bottles provided by the company and a series of fill-up stations About 34200 bottles are removed from the waste cycle every year
During the latest phase of its plant optimization Florim USA has implemented a thorough construction material reuse policy In the various stages of demolition of the old plants including the old storage silos the concrete debris was recovered and reused in other construction worksThis project alone generated 11500 tons of recycled aggregate as well as several hundred tonnes of metal sold to a recycling firm
Environmental management system and eco-compatible products
Florim USArsquos products help builders and designers to meet the requirements for sustainable buildings as defined by the United States Green Building Council (USGBC) through the LEED Green Building Rating System This protocol evaluates and certifies the environmental sustainability of a building as a unit from its design to its day to day management To gain LEED credits many of the Florim USA product lines contain a significant percentage of recycled material (40 or more)This feature contributes to an increase in the LEED score in the projects where these products are installed In 2014 Florim USA together with a large number of other US tile manufacturers and the Tile Council of North America drew up a type III environmental product declaration (EPD) certified under the ISO 14025 standard This ceramic tile life-cycle analysis enables Florim USA products to gain LEED points under the new LEED v4 protocol
2016 Sustainability Report 39
Water use (gallonsper million square feetof finished tiles)
208137 216246 204962 195280 194268
Energy use
2012 2013 2014 2015 2016
Cubic feet of natural gas per million square feet of finished tiles 9343383 9149721 8331170 8390503 8380000
kWh per million square feet of finished tiles 510972 491171 450594 465976 490300
Emissions
Particulate material lt 21024 tonnes per annum
SO2 (sulphur dioxide) lt 1674 tonnes per annum
VOC (volatile organic compounds) lt 1245 tonnes per annum
NOx (oxides of nitrogen) lt 1501 tonnes per annum
Environmental performance indicators ndash summary
The following are the main environmental indicators related to the impact and performance of Florim USA during 2016
Pre-consumer recycled material
Its internal material recycling processes enable the company to minimise its environmental impact since most of the material which would otherwise be sent to landfills or other waste treatment centers is reusedbull Wastewater is entirely recycled within the production process without any discharge into the municipal drainsbull The material in the collection bags from the tile body and glaze preparation areas the press and glaze application is entirely recycled within the processbull All scrap fired tiles are entirely recycled within the processbull 157000 kg of cardboard was sold to an external recycled material dealerbull 17 trucks of unusable wooden pallets were sold to a pallet regeneration companybull About 9300 kg of waste shrink-wrap plastic film was recovered and recycled
Post-consumer recycled material
About 82000 kg of glass was removed from the flow of waste destined for the local landfill and recycled within the process Florim USA has signed an agreement with the local landfill for consignment of all the glass it handles which is collected and set aside for recycling
Water use disposal and reuse
The water used during the production process is recycled continually therefore no water is discharged into the municipal drains
The 2016 emissions figures are in line with those for previous years well below the standards laid down
Water use 2012 2013 2014 2015 2016
Water use (gallons per million square feet of finished tiles) 216246 204962 195280 194268 203928
2016 Sustainability Report40
Social Responsibility
Employees
The Florim USA workforce comprises 348 staff employed at the production site the Clarksville and Nashville outlet stores and the Florim Solution offices Of the 348 employees 273 are blue-collar workers and 75 office staff 5 employees are Italians on secondment to the United States Florim USA offers a number of benefits to full time employeesbull health and dental care insurancebull Vision insurancebull life insurance for employees and optionally for family membersbull temporary and permanent disability supportbull employee pension plan
2012 2013 2014 2015 2016
Workplace injuries 50 41 22 29 27
The Employee Assistance Program (EAP) also offers support to employees and their families in the event of psychological difficulty or other problems that can have a negative impact on their quality of life Florim USA supports all the costs of the program
Equal opportunities
Florim USA provides equal opportunities in all employment practices to all qualified employees and applicants regardless of race colour religion gender national origin age disability or membership of the armed forces or any other category protected by federal state or local laws
Health and safety
FLORIM USA is committed to ensuring a safe healthy workplace for all employees It therefore replaces old and obsolete equipment with new technologically more modern machinery and updates safety plans as new information gradually becomes availableAs well as an internal supervisor Florim USA has also appointed a health and safety committee which constantly monitors the plans effectiveness and makes any changes requiredThere are currently 20 plant employees who hold CPRfirst aid qualifications They occupy a variety of positions and work different shifts within the plant and have volunteered to attend training courses sponsored by the company for the award of these qualifications
Training
In 2016 every Florim USA employee attended an average of about 25 hours of training The training provided covered the operating procedures for the new equipment the main safety plans and the procedures for use of existing equipment for new employeesAll new staff undergo specific training for their department focusing on the safety-related aspects of the department concerned as well as more generalized safety training
Some of these themes includebull safe correct use of forklift trucksbull training on work in confined spacesbull shutdownwarning procedures and safe electrical practicesbull safe lifting procedures
2016 Sustainability Report 41
Florim USA ndash (Clarksville Tennessee)
For employees wishing to continue their education Florim USA offers assistance through the Educational Assistance Program It provides aid with the cost of education and textbooks and is available for any employee wishing to study for a technical qualification a diploma or a degreeThe plant staff training and education plan also includes various training schemes at Florim Italy where employees are instructed in the use of new equipment before it is installed at the American plantThroughout 2016 Florim USA will continue to provide a free e-learning course on its website for architects engineers and contractors (AEC) to improve their knowledge of sustainable porcelain stoneware tiles
Employee welfare activities
Florim USA employee picnic - In 2016 the company once again held its annual picnic for employees offering them a wide variety of foods games activities and live shows in an event which provided an unforgettable days enjoyment Within the event participants received prizes in the form of vouchers and gifts
Employee anniversary dinner - 2016 again saw the usual dinner to honour Florim USA employees with 5 10 15 20 or more years of service A special evening event was held in the presence of the Chairman and the other managers to celebrate the loyalty and hard work these employees have contributed during their careers with the firm
2016 Sustainability Report42
Local Community
During 2016 Florim USA continued to provide its support to a number of projects in its local areaSome of the main projects include
Scholarships - As part of its work to support the local community Florim has an established scheme which awards scholarships to deserving students at the Austin Peay State University in memory of Florim Group founder Giovanni Lucchese In December 2016 a delegation of Florim representatives attended a scholarship presentation lunch at the Austin Peay State University hosted by the President of the University
Montgomery County Green Certification Program - Florim USA staff actively participate in the Montgomery County Green Certification Program which aims to help companies learn and implement best practices with regard to safeguarding the environment and environmental resources
Donations - In 2016 the company again made a large number of donationsbull book collection for the Austin Peay State University Employees made a generous donation of used books in good condition for children and young people of the APSU in the hope of further promoting the education of future generationsbull to Community Cares the national organization that promotes the acceptance and social inclusion of individuals with Downs Syndromebull to the Aspire Clarksville Foundation a 501(c)(3) charitable foundation whose mission is to continuously improve the economy and the livability (quality of life) of the community by attracting significant capital investment and expansion by businesses and corporations thereby creating better opportunities and higher paying jobs for residentsbull to the Alzheimerrsquos Association a non-profit voluntary organization dedicated to the care and support of Alzheimers Disease sufferers and research into the condition Its aim is to eliminate the disease through the advancement of research to provide and enhance care and support for all affected and to reduce the risk of dementia through the promotion of brain health
Other activities - Every year Florim USA participates in the United Way Drive initiative to support local non-profit organizations which provide economic assistance and psychological support to persons in difficulty
Florim USA provides regular support to the Salvation Army by collecting canned foods for persons in needIn 2016 the company again organised a canned food collection for Manna Cafeacute in Clarksville TN Manna Cafeacute is a local non-profit organization based in Middle Tennessee with the primary mission of meeting peoples fundamental need for food before encouraging them to permanently change their lives for the better More than 15 of the population in Montgomery County are affected by food insecurity (about 28000 people) The percentage of children affected is about 215 a third of whom are excluded by income from federal programs such as free school mealsFinally donations were made tobull American Lung Association the leading organization working to save lives by improving lung health and preventing lung disease through research and educationbull Cheer for a Cure an organization that gives money directly to afflicting families who have a loved one suffering from cancer and need assistance to alleviate the added financial stressbull Habitat for Humanity Since 1992 Habitat for Humanity in Montgomery County Tennessee has worked with 93 low-income families with more than 210 children to revitalise various parts of Clarksville-Montgomery County by building new homes
2016 Sustainability Report 43
Quality SystemFlorim USA works under a Quality System certified to UNI EN ISO 9001 standards The following are some of the figures in brief
Objective Indicator 2012 2013 2014 2015 2016
Optimisation of control of the production process
Percentage of First Grade Product ()
932 917 940 949 9510
Quality rate () 883 857 893 906 909
Scrap rate () 56 65 48 45 45
KeyPercentage of first grade product ratio between square feet of first grade material and total square feet transferred to stockQuality rate ratio between square feet of first grade material transferred to stock and square feet pressedScrap rate ratio between square feet pressed and square feet of product actually transferred to stock
Other ActivitiesFlorim USA and trade shows
In 2016 Florim USA participated at a number of shows and events including Coverings the AIA Tennessee Convention Hardscape North America Total Solutions Plus Neocon International Pool - Spa and Patio Expo These events targeted at the various categories of industry professionals such as dealers and designers gave Florim USA the opportunity to present its new range of indoor and outdoor products
Design Center
In December 2015 Florim USA opened a design center showroom in Nashville (TN) in a strategic location close to the airport and the city center With a spacious area to host individual CEU presentations and workshops this design center has the potential to be a major resource for local architects In 2016 it was also awarded the ldquoOutstanding Boothrdquo booth prize at the 33rd edition of the Annual Home Decorating and Remodeling Show The location is the ideal place for sharing ideas finding inspiration and putting professionals and architects in touch with each other
Florim Nashville Design Center
2016 Sustainability Report44
GRI International Sustainability Indicators SDGsThe information below illustrates the correspondence between the Florim (Italian companies) 2016 Sustainability Report the GRI-G4 guidelines and the icons of the Sustainable Development Goals (SDGs) definitively adopted by the United NationsA description of the SDGs is available at wwwglobalcompactnetworkorg
GRI indicators
Description Page Reference to SDGs
1 Strategy and Analysis
G4-1 Statement from the most senior decision-maker of the organization 5
2 Organization profile
G4-3 Name of the organization 2
G4-4 Primary brands products andor services 9
G4-5 Location of the organizations headquarters 9
G4-6 Number and names of the countries where the organization operates 9
G4-7 Nature of ownership and legal form 14
G4-8 Markets served 9
G4-9 Scale of the organization 8 8
G4-10 Significant changes regarding size structure or ownership 8
G4-11 Employees covered by National Collective Bargaining Agreement 27
G4-12 Describe the supply chain 16
G4-13Significant changes regarding the organizationrsquos size structure ownership or its supply chain
Reporting process
launched
G4-14 Precautionary principle 22
G4-15 List of external commitments in which the company is involved 22 32 33
G4-16 Associations or interest groups in which the company is involvedwwwflorimit gt
about us gt partnerships
3 Identified material aspects and boundaries
G4-18 Process used to define the report content 6
G4-19 Material aspects 16
G4-20 Boundaries of each material aspect 6
G4-21 Boundaries of each material aspect outside the organizationPartial reporting
(pages 6 16)
G4-22 Explanation of the effect of any restatements of information provided in previous reports 6
G4-23Significant changes from previous reporting periods in the scope boundaries or measurement methods
6
3 Stakeholder engagement
G4-24 List of stakeholders 15
G4-25 Identification of stakeholders 15
G4-26 Stakeholder engagement 6 16
G4-27 Key topics and concerns that have been raised through stakeholder engagement 16
4 Boundary of the Report
G4-28 Reporting period 6
G4-29 Date of publication 2
G4-30 Reporting cycle 6
G4-31 Contacts and addresses for additional information 46
5 GRI Content Index
G4-32 Reporting option chosen 6 7
G4-33 External assurance of ReportThe Report is not
externally assured
2016 Sustainability Report 45
GRI indicators
Description Page Reference to SDGs
6 Governance
G4-34 Governance structure 14
7 Ethics and integrity
G4-56 Values principles standards and norms of behavior 13 16
Economic performance indicators
EC1 Direct economic value generated and distributed 19 25789
EC5 Wages 27 158
EC7 Development and impact of infrastructure investments and services supported 23 24 31 257911
Environmental performance indicators
G4-EN2 Percentage of materials used that are recycled input materials 17 22 23 812
G4-EN3 Energy consumption within the organization 24 781213
G4-EN6 Reduction of energy consumption 17 24 71213
G4-EN7 Reductions in energy requirements of products and servicesPartial reporting
(page 22)71213
G4-EN8 Total water withdrawal by source 17 23 6
G4-EN10 Percentage and total volume of water recycled and reused 17 21 23 612
G4-EN11 Biodiversity 23 615
G4-EN15 Total indirect greenhouse gas emissions by weight 25 3121315
G4-EN16 Total indirect greenhouse gas emissions by weight 25 3121315
G4-EN19 Reduction of greenhouse gas emissions 8 24 1315
G4-EN21 NOx SOx and other significant air emissions 25 31215
G4-EN22 Total water discharge by quality and destination 23 6
G4-EN23 Total weight of waste by type 17 22 3612
G4-EN27 Impact mitigation of environmental impacts of products and services 23 68121315
G4-EN29 Monetary value of significant fines 22 16
G4-EN30 Significant environmental impacts of transporting products and goodsmaterialsPartial reporting
(page 25)111213
Social performance indicators
G4-LA1 Total number and rates of new employee hires and employee turnoverPartial reporting
(pages 17 27)8
G4-LA6 Workplace injury ratesPartial reporting
(page 17)38
G4-LA9 Average hours of training per year per employee 28 48
G4-LA12Composition of governance bodies and breakdown of employees according to gender age group etc
27 58
G4-LA13 Ratio of basic salary and total remuneration of women to men 27 5810
Society
G4-SO1 Operations with local community engagement 12 31 16
G4-SO3 Operations assessed for risks related to corruptionPartial reporting
(page 13)
Product responsibility
G4-PR1 Assessment of health and safety impacts for improvement 23 32
G4-PR3 Type of information about products and services required by the procedures 32 12
G4-PR5 Proceedings relating to customer satisfaction including surveys conducted to measure it 33
G4-PR6 Sale of banned or disputed products 32
G4-PR8 Number of substantiated complaints regarding breaches of privacy 32 16
2016 Sustainability Report46
Your Assessment
You are kindly requested to take a few minutes of your time to give us your assessment and any suggestions to enable us to improve future editions of our Sustainability Report
Click here to send us your feedback
To keep up to date with our business
Spazio CEDIT - interior (Milan)
wwwflorimiten
Florim Ceramiche
Florim4Architects
Florim_ceramiche
Florim Ceramiche spa
Florim Ceramiche
Florim Ceramiche
For any further information please feel free to contact our communications department comunicazioneflorimit
2016 Sustainability Report 47
Premio Lucchese - Florim Gallery (Fiorano Modenese - Modena Italy)
Intrapresaelig Guggenheim Collection - Massimo Bottura in Florim Gallery (Fiorano Modenese - Modena Italy)
Panathlon Christmas Gala - Florim Gallery (Fiorano Modenese - Modena Italy)
2016 Sustainability Report48
White Christmas Party - Florim Gallery (Fiorano Modenese - Modena Italy)
Cersaie - Mario Biondi in Florim Gallery (Fiorano Modenese - Modena Italy)
Dal buio alla luce - Social event at Florim Gallery (Fiorano Modenese - Modena Italy)
2016 Sustainability Report 49
Florim Gallery entrance (Fiorano Modenese - MO)
2016 Sustainability Report52
Florim Ceramiche spaVia Canaletto 24 - 41042 Fiorano Modenese (Modena Italy) - Tel +39 0536 840111 - wwwflorimit
2016 Sustainability Report36
The targets we set for ourselvesWe aim to achieve the following objectives in 2017
Economic Responsibility
Construction of a new factory at Mordano to produce large slabs
Launch of the project to unite the Florim spa sales organizations
Total restyling of the corporate and brand Internet sites
Launch of the HUB project - Intranet CRM Marketing Automation
New plants at Florim USA a press two sorting lines a polishing and rectifying line
New working spaces and cloakrooms for technical staff at the American plant
Environmental Responsibility
Purchase of a new cogenerator for the Mordano plant
Introduction of a new rainwater collection system at Fiorano
Land reclamation project involving covering of the Rio Spezzano stream at Fiorano
Implementation of new software for continual monitoring of energy impacts at Fiorano
Modernisation of the compressor room to improve energy impacts at Mordano
Increase of recycling targets through constant awareness-raising amongst all staff and optimisation of recycling facilities
Continuation of replacement of the diesel forklift trucks for use on outdoor yards with electric vehicles
Social Responsibility
Improvement of corporate welfare through the activation of new free services and discounts tailored to employees needs
Continuation of the health meetings for the local community in association with Ospedale di Sassuolo Spa
Organization of new community events at Florim Gallery
Organization of a new event for Florim spa employees
New offices for hospitality and events staff at Fiorano
2016 Sustainability Report 37
FLORIM USA
Profile and Economic ResponsibilityFlorim USA with registered office at Clarksville - Tennessee - and its subsidiary Florim Solution Inc have been part of the Florim Group since 2000 The Florim USA manufacturing plant one of the largest most technologically advanced in the United States produces porcelain stoneware tiles for the residential market and undertakes commercial projects in North America During the last few years Florim USA has implemented a growth and process optimization strategy which has generated significant technological progress with more innovations planned for the future The strategy adopted will put Florim USA at the worldwide state of the art in porcelain stoneware tile manufacture
In 2016 of the 18 million USD invested 147 was allocated for installation of a latest-generation raw material handling system and a large spray-dryer with an innovative sorting system Improvements were made to other parts of the process to increase their efficiency leading to a further reduction in emissions and scrap rates Additional investments are planned during 2017 to continue this dual trend of rising production with mitigation of environmental impact
The new Florim Flagship Store in New York (152 Madison Avenue 32nd Street)
2016 Sustainability Report38
Environmental ResponsibilityFlorim USA implements the same environmental policy as Florim and is committed to achieving the following objectives
bull reduction of the energy used in the production processbull improvement of the waste management process with a focus on recovery and reusebull introduction of new more eco-efficient technologiesbull adoption of integrated management systems
Florim USA has been pursuing a strategy of careful management of its operations and environmental impact for a number of years Here we summarise the main actions taken and the results achieved in 2016
bull installation of a latest-generation spray-dryer in 2016bull installation of an innovative raw material handling system in 2016bull 100 recycling of wastewater within the processbull optimisation of the management of water bottles with elimination of about 34200 of them per annumbull reuse of almost all production scrap (+99)bull 157000 kg of cardboard recycled in 2016bull award of two different types of product certificationbull 9300 kg of plastic recycledbull recycling of 17 complete trucks of pallets
Environmental Projects and Awards
Florim USA has received Clarksville Montgomery County Green Certification (CMCGC) CMCGC is a program designed to help companies learn and implement best practices in the area of environmental stewardship to sustain the local communityrsquos resources through a series of free workshops taught by local environmental specialists Since 2014 Florim has allocated some of its Environment Managers time for the running of these workshopsFlorim USA earned this green company certification thanks to a large number of projects first and foremost the one which eliminated the use of disposable water bottles replaced with individual reusable bottles provided by the company and a series of fill-up stations About 34200 bottles are removed from the waste cycle every year
During the latest phase of its plant optimization Florim USA has implemented a thorough construction material reuse policy In the various stages of demolition of the old plants including the old storage silos the concrete debris was recovered and reused in other construction worksThis project alone generated 11500 tons of recycled aggregate as well as several hundred tonnes of metal sold to a recycling firm
Environmental management system and eco-compatible products
Florim USArsquos products help builders and designers to meet the requirements for sustainable buildings as defined by the United States Green Building Council (USGBC) through the LEED Green Building Rating System This protocol evaluates and certifies the environmental sustainability of a building as a unit from its design to its day to day management To gain LEED credits many of the Florim USA product lines contain a significant percentage of recycled material (40 or more)This feature contributes to an increase in the LEED score in the projects where these products are installed In 2014 Florim USA together with a large number of other US tile manufacturers and the Tile Council of North America drew up a type III environmental product declaration (EPD) certified under the ISO 14025 standard This ceramic tile life-cycle analysis enables Florim USA products to gain LEED points under the new LEED v4 protocol
2016 Sustainability Report 39
Water use (gallonsper million square feetof finished tiles)
208137 216246 204962 195280 194268
Energy use
2012 2013 2014 2015 2016
Cubic feet of natural gas per million square feet of finished tiles 9343383 9149721 8331170 8390503 8380000
kWh per million square feet of finished tiles 510972 491171 450594 465976 490300
Emissions
Particulate material lt 21024 tonnes per annum
SO2 (sulphur dioxide) lt 1674 tonnes per annum
VOC (volatile organic compounds) lt 1245 tonnes per annum
NOx (oxides of nitrogen) lt 1501 tonnes per annum
Environmental performance indicators ndash summary
The following are the main environmental indicators related to the impact and performance of Florim USA during 2016
Pre-consumer recycled material
Its internal material recycling processes enable the company to minimise its environmental impact since most of the material which would otherwise be sent to landfills or other waste treatment centers is reusedbull Wastewater is entirely recycled within the production process without any discharge into the municipal drainsbull The material in the collection bags from the tile body and glaze preparation areas the press and glaze application is entirely recycled within the processbull All scrap fired tiles are entirely recycled within the processbull 157000 kg of cardboard was sold to an external recycled material dealerbull 17 trucks of unusable wooden pallets were sold to a pallet regeneration companybull About 9300 kg of waste shrink-wrap plastic film was recovered and recycled
Post-consumer recycled material
About 82000 kg of glass was removed from the flow of waste destined for the local landfill and recycled within the process Florim USA has signed an agreement with the local landfill for consignment of all the glass it handles which is collected and set aside for recycling
Water use disposal and reuse
The water used during the production process is recycled continually therefore no water is discharged into the municipal drains
The 2016 emissions figures are in line with those for previous years well below the standards laid down
Water use 2012 2013 2014 2015 2016
Water use (gallons per million square feet of finished tiles) 216246 204962 195280 194268 203928
2016 Sustainability Report40
Social Responsibility
Employees
The Florim USA workforce comprises 348 staff employed at the production site the Clarksville and Nashville outlet stores and the Florim Solution offices Of the 348 employees 273 are blue-collar workers and 75 office staff 5 employees are Italians on secondment to the United States Florim USA offers a number of benefits to full time employeesbull health and dental care insurancebull Vision insurancebull life insurance for employees and optionally for family membersbull temporary and permanent disability supportbull employee pension plan
2012 2013 2014 2015 2016
Workplace injuries 50 41 22 29 27
The Employee Assistance Program (EAP) also offers support to employees and their families in the event of psychological difficulty or other problems that can have a negative impact on their quality of life Florim USA supports all the costs of the program
Equal opportunities
Florim USA provides equal opportunities in all employment practices to all qualified employees and applicants regardless of race colour religion gender national origin age disability or membership of the armed forces or any other category protected by federal state or local laws
Health and safety
FLORIM USA is committed to ensuring a safe healthy workplace for all employees It therefore replaces old and obsolete equipment with new technologically more modern machinery and updates safety plans as new information gradually becomes availableAs well as an internal supervisor Florim USA has also appointed a health and safety committee which constantly monitors the plans effectiveness and makes any changes requiredThere are currently 20 plant employees who hold CPRfirst aid qualifications They occupy a variety of positions and work different shifts within the plant and have volunteered to attend training courses sponsored by the company for the award of these qualifications
Training
In 2016 every Florim USA employee attended an average of about 25 hours of training The training provided covered the operating procedures for the new equipment the main safety plans and the procedures for use of existing equipment for new employeesAll new staff undergo specific training for their department focusing on the safety-related aspects of the department concerned as well as more generalized safety training
Some of these themes includebull safe correct use of forklift trucksbull training on work in confined spacesbull shutdownwarning procedures and safe electrical practicesbull safe lifting procedures
2016 Sustainability Report 41
Florim USA ndash (Clarksville Tennessee)
For employees wishing to continue their education Florim USA offers assistance through the Educational Assistance Program It provides aid with the cost of education and textbooks and is available for any employee wishing to study for a technical qualification a diploma or a degreeThe plant staff training and education plan also includes various training schemes at Florim Italy where employees are instructed in the use of new equipment before it is installed at the American plantThroughout 2016 Florim USA will continue to provide a free e-learning course on its website for architects engineers and contractors (AEC) to improve their knowledge of sustainable porcelain stoneware tiles
Employee welfare activities
Florim USA employee picnic - In 2016 the company once again held its annual picnic for employees offering them a wide variety of foods games activities and live shows in an event which provided an unforgettable days enjoyment Within the event participants received prizes in the form of vouchers and gifts
Employee anniversary dinner - 2016 again saw the usual dinner to honour Florim USA employees with 5 10 15 20 or more years of service A special evening event was held in the presence of the Chairman and the other managers to celebrate the loyalty and hard work these employees have contributed during their careers with the firm
2016 Sustainability Report42
Local Community
During 2016 Florim USA continued to provide its support to a number of projects in its local areaSome of the main projects include
Scholarships - As part of its work to support the local community Florim has an established scheme which awards scholarships to deserving students at the Austin Peay State University in memory of Florim Group founder Giovanni Lucchese In December 2016 a delegation of Florim representatives attended a scholarship presentation lunch at the Austin Peay State University hosted by the President of the University
Montgomery County Green Certification Program - Florim USA staff actively participate in the Montgomery County Green Certification Program which aims to help companies learn and implement best practices with regard to safeguarding the environment and environmental resources
Donations - In 2016 the company again made a large number of donationsbull book collection for the Austin Peay State University Employees made a generous donation of used books in good condition for children and young people of the APSU in the hope of further promoting the education of future generationsbull to Community Cares the national organization that promotes the acceptance and social inclusion of individuals with Downs Syndromebull to the Aspire Clarksville Foundation a 501(c)(3) charitable foundation whose mission is to continuously improve the economy and the livability (quality of life) of the community by attracting significant capital investment and expansion by businesses and corporations thereby creating better opportunities and higher paying jobs for residentsbull to the Alzheimerrsquos Association a non-profit voluntary organization dedicated to the care and support of Alzheimers Disease sufferers and research into the condition Its aim is to eliminate the disease through the advancement of research to provide and enhance care and support for all affected and to reduce the risk of dementia through the promotion of brain health
Other activities - Every year Florim USA participates in the United Way Drive initiative to support local non-profit organizations which provide economic assistance and psychological support to persons in difficulty
Florim USA provides regular support to the Salvation Army by collecting canned foods for persons in needIn 2016 the company again organised a canned food collection for Manna Cafeacute in Clarksville TN Manna Cafeacute is a local non-profit organization based in Middle Tennessee with the primary mission of meeting peoples fundamental need for food before encouraging them to permanently change their lives for the better More than 15 of the population in Montgomery County are affected by food insecurity (about 28000 people) The percentage of children affected is about 215 a third of whom are excluded by income from federal programs such as free school mealsFinally donations were made tobull American Lung Association the leading organization working to save lives by improving lung health and preventing lung disease through research and educationbull Cheer for a Cure an organization that gives money directly to afflicting families who have a loved one suffering from cancer and need assistance to alleviate the added financial stressbull Habitat for Humanity Since 1992 Habitat for Humanity in Montgomery County Tennessee has worked with 93 low-income families with more than 210 children to revitalise various parts of Clarksville-Montgomery County by building new homes
2016 Sustainability Report 43
Quality SystemFlorim USA works under a Quality System certified to UNI EN ISO 9001 standards The following are some of the figures in brief
Objective Indicator 2012 2013 2014 2015 2016
Optimisation of control of the production process
Percentage of First Grade Product ()
932 917 940 949 9510
Quality rate () 883 857 893 906 909
Scrap rate () 56 65 48 45 45
KeyPercentage of first grade product ratio between square feet of first grade material and total square feet transferred to stockQuality rate ratio between square feet of first grade material transferred to stock and square feet pressedScrap rate ratio between square feet pressed and square feet of product actually transferred to stock
Other ActivitiesFlorim USA and trade shows
In 2016 Florim USA participated at a number of shows and events including Coverings the AIA Tennessee Convention Hardscape North America Total Solutions Plus Neocon International Pool - Spa and Patio Expo These events targeted at the various categories of industry professionals such as dealers and designers gave Florim USA the opportunity to present its new range of indoor and outdoor products
Design Center
In December 2015 Florim USA opened a design center showroom in Nashville (TN) in a strategic location close to the airport and the city center With a spacious area to host individual CEU presentations and workshops this design center has the potential to be a major resource for local architects In 2016 it was also awarded the ldquoOutstanding Boothrdquo booth prize at the 33rd edition of the Annual Home Decorating and Remodeling Show The location is the ideal place for sharing ideas finding inspiration and putting professionals and architects in touch with each other
Florim Nashville Design Center
2016 Sustainability Report44
GRI International Sustainability Indicators SDGsThe information below illustrates the correspondence between the Florim (Italian companies) 2016 Sustainability Report the GRI-G4 guidelines and the icons of the Sustainable Development Goals (SDGs) definitively adopted by the United NationsA description of the SDGs is available at wwwglobalcompactnetworkorg
GRI indicators
Description Page Reference to SDGs
1 Strategy and Analysis
G4-1 Statement from the most senior decision-maker of the organization 5
2 Organization profile
G4-3 Name of the organization 2
G4-4 Primary brands products andor services 9
G4-5 Location of the organizations headquarters 9
G4-6 Number and names of the countries where the organization operates 9
G4-7 Nature of ownership and legal form 14
G4-8 Markets served 9
G4-9 Scale of the organization 8 8
G4-10 Significant changes regarding size structure or ownership 8
G4-11 Employees covered by National Collective Bargaining Agreement 27
G4-12 Describe the supply chain 16
G4-13Significant changes regarding the organizationrsquos size structure ownership or its supply chain
Reporting process
launched
G4-14 Precautionary principle 22
G4-15 List of external commitments in which the company is involved 22 32 33
G4-16 Associations or interest groups in which the company is involvedwwwflorimit gt
about us gt partnerships
3 Identified material aspects and boundaries
G4-18 Process used to define the report content 6
G4-19 Material aspects 16
G4-20 Boundaries of each material aspect 6
G4-21 Boundaries of each material aspect outside the organizationPartial reporting
(pages 6 16)
G4-22 Explanation of the effect of any restatements of information provided in previous reports 6
G4-23Significant changes from previous reporting periods in the scope boundaries or measurement methods
6
3 Stakeholder engagement
G4-24 List of stakeholders 15
G4-25 Identification of stakeholders 15
G4-26 Stakeholder engagement 6 16
G4-27 Key topics and concerns that have been raised through stakeholder engagement 16
4 Boundary of the Report
G4-28 Reporting period 6
G4-29 Date of publication 2
G4-30 Reporting cycle 6
G4-31 Contacts and addresses for additional information 46
5 GRI Content Index
G4-32 Reporting option chosen 6 7
G4-33 External assurance of ReportThe Report is not
externally assured
2016 Sustainability Report 45
GRI indicators
Description Page Reference to SDGs
6 Governance
G4-34 Governance structure 14
7 Ethics and integrity
G4-56 Values principles standards and norms of behavior 13 16
Economic performance indicators
EC1 Direct economic value generated and distributed 19 25789
EC5 Wages 27 158
EC7 Development and impact of infrastructure investments and services supported 23 24 31 257911
Environmental performance indicators
G4-EN2 Percentage of materials used that are recycled input materials 17 22 23 812
G4-EN3 Energy consumption within the organization 24 781213
G4-EN6 Reduction of energy consumption 17 24 71213
G4-EN7 Reductions in energy requirements of products and servicesPartial reporting
(page 22)71213
G4-EN8 Total water withdrawal by source 17 23 6
G4-EN10 Percentage and total volume of water recycled and reused 17 21 23 612
G4-EN11 Biodiversity 23 615
G4-EN15 Total indirect greenhouse gas emissions by weight 25 3121315
G4-EN16 Total indirect greenhouse gas emissions by weight 25 3121315
G4-EN19 Reduction of greenhouse gas emissions 8 24 1315
G4-EN21 NOx SOx and other significant air emissions 25 31215
G4-EN22 Total water discharge by quality and destination 23 6
G4-EN23 Total weight of waste by type 17 22 3612
G4-EN27 Impact mitigation of environmental impacts of products and services 23 68121315
G4-EN29 Monetary value of significant fines 22 16
G4-EN30 Significant environmental impacts of transporting products and goodsmaterialsPartial reporting
(page 25)111213
Social performance indicators
G4-LA1 Total number and rates of new employee hires and employee turnoverPartial reporting
(pages 17 27)8
G4-LA6 Workplace injury ratesPartial reporting
(page 17)38
G4-LA9 Average hours of training per year per employee 28 48
G4-LA12Composition of governance bodies and breakdown of employees according to gender age group etc
27 58
G4-LA13 Ratio of basic salary and total remuneration of women to men 27 5810
Society
G4-SO1 Operations with local community engagement 12 31 16
G4-SO3 Operations assessed for risks related to corruptionPartial reporting
(page 13)
Product responsibility
G4-PR1 Assessment of health and safety impacts for improvement 23 32
G4-PR3 Type of information about products and services required by the procedures 32 12
G4-PR5 Proceedings relating to customer satisfaction including surveys conducted to measure it 33
G4-PR6 Sale of banned or disputed products 32
G4-PR8 Number of substantiated complaints regarding breaches of privacy 32 16
2016 Sustainability Report46
Your Assessment
You are kindly requested to take a few minutes of your time to give us your assessment and any suggestions to enable us to improve future editions of our Sustainability Report
Click here to send us your feedback
To keep up to date with our business
Spazio CEDIT - interior (Milan)
wwwflorimiten
Florim Ceramiche
Florim4Architects
Florim_ceramiche
Florim Ceramiche spa
Florim Ceramiche
Florim Ceramiche
For any further information please feel free to contact our communications department comunicazioneflorimit
2016 Sustainability Report 47
Premio Lucchese - Florim Gallery (Fiorano Modenese - Modena Italy)
Intrapresaelig Guggenheim Collection - Massimo Bottura in Florim Gallery (Fiorano Modenese - Modena Italy)
Panathlon Christmas Gala - Florim Gallery (Fiorano Modenese - Modena Italy)
2016 Sustainability Report48
White Christmas Party - Florim Gallery (Fiorano Modenese - Modena Italy)
Cersaie - Mario Biondi in Florim Gallery (Fiorano Modenese - Modena Italy)
Dal buio alla luce - Social event at Florim Gallery (Fiorano Modenese - Modena Italy)
2016 Sustainability Report 49
Florim Gallery entrance (Fiorano Modenese - MO)
2016 Sustainability Report52
Florim Ceramiche spaVia Canaletto 24 - 41042 Fiorano Modenese (Modena Italy) - Tel +39 0536 840111 - wwwflorimit
2016 Sustainability Report 37
FLORIM USA
Profile and Economic ResponsibilityFlorim USA with registered office at Clarksville - Tennessee - and its subsidiary Florim Solution Inc have been part of the Florim Group since 2000 The Florim USA manufacturing plant one of the largest most technologically advanced in the United States produces porcelain stoneware tiles for the residential market and undertakes commercial projects in North America During the last few years Florim USA has implemented a growth and process optimization strategy which has generated significant technological progress with more innovations planned for the future The strategy adopted will put Florim USA at the worldwide state of the art in porcelain stoneware tile manufacture
In 2016 of the 18 million USD invested 147 was allocated for installation of a latest-generation raw material handling system and a large spray-dryer with an innovative sorting system Improvements were made to other parts of the process to increase their efficiency leading to a further reduction in emissions and scrap rates Additional investments are planned during 2017 to continue this dual trend of rising production with mitigation of environmental impact
The new Florim Flagship Store in New York (152 Madison Avenue 32nd Street)
2016 Sustainability Report38
Environmental ResponsibilityFlorim USA implements the same environmental policy as Florim and is committed to achieving the following objectives
bull reduction of the energy used in the production processbull improvement of the waste management process with a focus on recovery and reusebull introduction of new more eco-efficient technologiesbull adoption of integrated management systems
Florim USA has been pursuing a strategy of careful management of its operations and environmental impact for a number of years Here we summarise the main actions taken and the results achieved in 2016
bull installation of a latest-generation spray-dryer in 2016bull installation of an innovative raw material handling system in 2016bull 100 recycling of wastewater within the processbull optimisation of the management of water bottles with elimination of about 34200 of them per annumbull reuse of almost all production scrap (+99)bull 157000 kg of cardboard recycled in 2016bull award of two different types of product certificationbull 9300 kg of plastic recycledbull recycling of 17 complete trucks of pallets
Environmental Projects and Awards
Florim USA has received Clarksville Montgomery County Green Certification (CMCGC) CMCGC is a program designed to help companies learn and implement best practices in the area of environmental stewardship to sustain the local communityrsquos resources through a series of free workshops taught by local environmental specialists Since 2014 Florim has allocated some of its Environment Managers time for the running of these workshopsFlorim USA earned this green company certification thanks to a large number of projects first and foremost the one which eliminated the use of disposable water bottles replaced with individual reusable bottles provided by the company and a series of fill-up stations About 34200 bottles are removed from the waste cycle every year
During the latest phase of its plant optimization Florim USA has implemented a thorough construction material reuse policy In the various stages of demolition of the old plants including the old storage silos the concrete debris was recovered and reused in other construction worksThis project alone generated 11500 tons of recycled aggregate as well as several hundred tonnes of metal sold to a recycling firm
Environmental management system and eco-compatible products
Florim USArsquos products help builders and designers to meet the requirements for sustainable buildings as defined by the United States Green Building Council (USGBC) through the LEED Green Building Rating System This protocol evaluates and certifies the environmental sustainability of a building as a unit from its design to its day to day management To gain LEED credits many of the Florim USA product lines contain a significant percentage of recycled material (40 or more)This feature contributes to an increase in the LEED score in the projects where these products are installed In 2014 Florim USA together with a large number of other US tile manufacturers and the Tile Council of North America drew up a type III environmental product declaration (EPD) certified under the ISO 14025 standard This ceramic tile life-cycle analysis enables Florim USA products to gain LEED points under the new LEED v4 protocol
2016 Sustainability Report 39
Water use (gallonsper million square feetof finished tiles)
208137 216246 204962 195280 194268
Energy use
2012 2013 2014 2015 2016
Cubic feet of natural gas per million square feet of finished tiles 9343383 9149721 8331170 8390503 8380000
kWh per million square feet of finished tiles 510972 491171 450594 465976 490300
Emissions
Particulate material lt 21024 tonnes per annum
SO2 (sulphur dioxide) lt 1674 tonnes per annum
VOC (volatile organic compounds) lt 1245 tonnes per annum
NOx (oxides of nitrogen) lt 1501 tonnes per annum
Environmental performance indicators ndash summary
The following are the main environmental indicators related to the impact and performance of Florim USA during 2016
Pre-consumer recycled material
Its internal material recycling processes enable the company to minimise its environmental impact since most of the material which would otherwise be sent to landfills or other waste treatment centers is reusedbull Wastewater is entirely recycled within the production process without any discharge into the municipal drainsbull The material in the collection bags from the tile body and glaze preparation areas the press and glaze application is entirely recycled within the processbull All scrap fired tiles are entirely recycled within the processbull 157000 kg of cardboard was sold to an external recycled material dealerbull 17 trucks of unusable wooden pallets were sold to a pallet regeneration companybull About 9300 kg of waste shrink-wrap plastic film was recovered and recycled
Post-consumer recycled material
About 82000 kg of glass was removed from the flow of waste destined for the local landfill and recycled within the process Florim USA has signed an agreement with the local landfill for consignment of all the glass it handles which is collected and set aside for recycling
Water use disposal and reuse
The water used during the production process is recycled continually therefore no water is discharged into the municipal drains
The 2016 emissions figures are in line with those for previous years well below the standards laid down
Water use 2012 2013 2014 2015 2016
Water use (gallons per million square feet of finished tiles) 216246 204962 195280 194268 203928
2016 Sustainability Report40
Social Responsibility
Employees
The Florim USA workforce comprises 348 staff employed at the production site the Clarksville and Nashville outlet stores and the Florim Solution offices Of the 348 employees 273 are blue-collar workers and 75 office staff 5 employees are Italians on secondment to the United States Florim USA offers a number of benefits to full time employeesbull health and dental care insurancebull Vision insurancebull life insurance for employees and optionally for family membersbull temporary and permanent disability supportbull employee pension plan
2012 2013 2014 2015 2016
Workplace injuries 50 41 22 29 27
The Employee Assistance Program (EAP) also offers support to employees and their families in the event of psychological difficulty or other problems that can have a negative impact on their quality of life Florim USA supports all the costs of the program
Equal opportunities
Florim USA provides equal opportunities in all employment practices to all qualified employees and applicants regardless of race colour religion gender national origin age disability or membership of the armed forces or any other category protected by federal state or local laws
Health and safety
FLORIM USA is committed to ensuring a safe healthy workplace for all employees It therefore replaces old and obsolete equipment with new technologically more modern machinery and updates safety plans as new information gradually becomes availableAs well as an internal supervisor Florim USA has also appointed a health and safety committee which constantly monitors the plans effectiveness and makes any changes requiredThere are currently 20 plant employees who hold CPRfirst aid qualifications They occupy a variety of positions and work different shifts within the plant and have volunteered to attend training courses sponsored by the company for the award of these qualifications
Training
In 2016 every Florim USA employee attended an average of about 25 hours of training The training provided covered the operating procedures for the new equipment the main safety plans and the procedures for use of existing equipment for new employeesAll new staff undergo specific training for their department focusing on the safety-related aspects of the department concerned as well as more generalized safety training
Some of these themes includebull safe correct use of forklift trucksbull training on work in confined spacesbull shutdownwarning procedures and safe electrical practicesbull safe lifting procedures
2016 Sustainability Report 41
Florim USA ndash (Clarksville Tennessee)
For employees wishing to continue their education Florim USA offers assistance through the Educational Assistance Program It provides aid with the cost of education and textbooks and is available for any employee wishing to study for a technical qualification a diploma or a degreeThe plant staff training and education plan also includes various training schemes at Florim Italy where employees are instructed in the use of new equipment before it is installed at the American plantThroughout 2016 Florim USA will continue to provide a free e-learning course on its website for architects engineers and contractors (AEC) to improve their knowledge of sustainable porcelain stoneware tiles
Employee welfare activities
Florim USA employee picnic - In 2016 the company once again held its annual picnic for employees offering them a wide variety of foods games activities and live shows in an event which provided an unforgettable days enjoyment Within the event participants received prizes in the form of vouchers and gifts
Employee anniversary dinner - 2016 again saw the usual dinner to honour Florim USA employees with 5 10 15 20 or more years of service A special evening event was held in the presence of the Chairman and the other managers to celebrate the loyalty and hard work these employees have contributed during their careers with the firm
2016 Sustainability Report42
Local Community
During 2016 Florim USA continued to provide its support to a number of projects in its local areaSome of the main projects include
Scholarships - As part of its work to support the local community Florim has an established scheme which awards scholarships to deserving students at the Austin Peay State University in memory of Florim Group founder Giovanni Lucchese In December 2016 a delegation of Florim representatives attended a scholarship presentation lunch at the Austin Peay State University hosted by the President of the University
Montgomery County Green Certification Program - Florim USA staff actively participate in the Montgomery County Green Certification Program which aims to help companies learn and implement best practices with regard to safeguarding the environment and environmental resources
Donations - In 2016 the company again made a large number of donationsbull book collection for the Austin Peay State University Employees made a generous donation of used books in good condition for children and young people of the APSU in the hope of further promoting the education of future generationsbull to Community Cares the national organization that promotes the acceptance and social inclusion of individuals with Downs Syndromebull to the Aspire Clarksville Foundation a 501(c)(3) charitable foundation whose mission is to continuously improve the economy and the livability (quality of life) of the community by attracting significant capital investment and expansion by businesses and corporations thereby creating better opportunities and higher paying jobs for residentsbull to the Alzheimerrsquos Association a non-profit voluntary organization dedicated to the care and support of Alzheimers Disease sufferers and research into the condition Its aim is to eliminate the disease through the advancement of research to provide and enhance care and support for all affected and to reduce the risk of dementia through the promotion of brain health
Other activities - Every year Florim USA participates in the United Way Drive initiative to support local non-profit organizations which provide economic assistance and psychological support to persons in difficulty
Florim USA provides regular support to the Salvation Army by collecting canned foods for persons in needIn 2016 the company again organised a canned food collection for Manna Cafeacute in Clarksville TN Manna Cafeacute is a local non-profit organization based in Middle Tennessee with the primary mission of meeting peoples fundamental need for food before encouraging them to permanently change their lives for the better More than 15 of the population in Montgomery County are affected by food insecurity (about 28000 people) The percentage of children affected is about 215 a third of whom are excluded by income from federal programs such as free school mealsFinally donations were made tobull American Lung Association the leading organization working to save lives by improving lung health and preventing lung disease through research and educationbull Cheer for a Cure an organization that gives money directly to afflicting families who have a loved one suffering from cancer and need assistance to alleviate the added financial stressbull Habitat for Humanity Since 1992 Habitat for Humanity in Montgomery County Tennessee has worked with 93 low-income families with more than 210 children to revitalise various parts of Clarksville-Montgomery County by building new homes
2016 Sustainability Report 43
Quality SystemFlorim USA works under a Quality System certified to UNI EN ISO 9001 standards The following are some of the figures in brief
Objective Indicator 2012 2013 2014 2015 2016
Optimisation of control of the production process
Percentage of First Grade Product ()
932 917 940 949 9510
Quality rate () 883 857 893 906 909
Scrap rate () 56 65 48 45 45
KeyPercentage of first grade product ratio between square feet of first grade material and total square feet transferred to stockQuality rate ratio between square feet of first grade material transferred to stock and square feet pressedScrap rate ratio between square feet pressed and square feet of product actually transferred to stock
Other ActivitiesFlorim USA and trade shows
In 2016 Florim USA participated at a number of shows and events including Coverings the AIA Tennessee Convention Hardscape North America Total Solutions Plus Neocon International Pool - Spa and Patio Expo These events targeted at the various categories of industry professionals such as dealers and designers gave Florim USA the opportunity to present its new range of indoor and outdoor products
Design Center
In December 2015 Florim USA opened a design center showroom in Nashville (TN) in a strategic location close to the airport and the city center With a spacious area to host individual CEU presentations and workshops this design center has the potential to be a major resource for local architects In 2016 it was also awarded the ldquoOutstanding Boothrdquo booth prize at the 33rd edition of the Annual Home Decorating and Remodeling Show The location is the ideal place for sharing ideas finding inspiration and putting professionals and architects in touch with each other
Florim Nashville Design Center
2016 Sustainability Report44
GRI International Sustainability Indicators SDGsThe information below illustrates the correspondence between the Florim (Italian companies) 2016 Sustainability Report the GRI-G4 guidelines and the icons of the Sustainable Development Goals (SDGs) definitively adopted by the United NationsA description of the SDGs is available at wwwglobalcompactnetworkorg
GRI indicators
Description Page Reference to SDGs
1 Strategy and Analysis
G4-1 Statement from the most senior decision-maker of the organization 5
2 Organization profile
G4-3 Name of the organization 2
G4-4 Primary brands products andor services 9
G4-5 Location of the organizations headquarters 9
G4-6 Number and names of the countries where the organization operates 9
G4-7 Nature of ownership and legal form 14
G4-8 Markets served 9
G4-9 Scale of the organization 8 8
G4-10 Significant changes regarding size structure or ownership 8
G4-11 Employees covered by National Collective Bargaining Agreement 27
G4-12 Describe the supply chain 16
G4-13Significant changes regarding the organizationrsquos size structure ownership or its supply chain
Reporting process
launched
G4-14 Precautionary principle 22
G4-15 List of external commitments in which the company is involved 22 32 33
G4-16 Associations or interest groups in which the company is involvedwwwflorimit gt
about us gt partnerships
3 Identified material aspects and boundaries
G4-18 Process used to define the report content 6
G4-19 Material aspects 16
G4-20 Boundaries of each material aspect 6
G4-21 Boundaries of each material aspect outside the organizationPartial reporting
(pages 6 16)
G4-22 Explanation of the effect of any restatements of information provided in previous reports 6
G4-23Significant changes from previous reporting periods in the scope boundaries or measurement methods
6
3 Stakeholder engagement
G4-24 List of stakeholders 15
G4-25 Identification of stakeholders 15
G4-26 Stakeholder engagement 6 16
G4-27 Key topics and concerns that have been raised through stakeholder engagement 16
4 Boundary of the Report
G4-28 Reporting period 6
G4-29 Date of publication 2
G4-30 Reporting cycle 6
G4-31 Contacts and addresses for additional information 46
5 GRI Content Index
G4-32 Reporting option chosen 6 7
G4-33 External assurance of ReportThe Report is not
externally assured
2016 Sustainability Report 45
GRI indicators
Description Page Reference to SDGs
6 Governance
G4-34 Governance structure 14
7 Ethics and integrity
G4-56 Values principles standards and norms of behavior 13 16
Economic performance indicators
EC1 Direct economic value generated and distributed 19 25789
EC5 Wages 27 158
EC7 Development and impact of infrastructure investments and services supported 23 24 31 257911
Environmental performance indicators
G4-EN2 Percentage of materials used that are recycled input materials 17 22 23 812
G4-EN3 Energy consumption within the organization 24 781213
G4-EN6 Reduction of energy consumption 17 24 71213
G4-EN7 Reductions in energy requirements of products and servicesPartial reporting
(page 22)71213
G4-EN8 Total water withdrawal by source 17 23 6
G4-EN10 Percentage and total volume of water recycled and reused 17 21 23 612
G4-EN11 Biodiversity 23 615
G4-EN15 Total indirect greenhouse gas emissions by weight 25 3121315
G4-EN16 Total indirect greenhouse gas emissions by weight 25 3121315
G4-EN19 Reduction of greenhouse gas emissions 8 24 1315
G4-EN21 NOx SOx and other significant air emissions 25 31215
G4-EN22 Total water discharge by quality and destination 23 6
G4-EN23 Total weight of waste by type 17 22 3612
G4-EN27 Impact mitigation of environmental impacts of products and services 23 68121315
G4-EN29 Monetary value of significant fines 22 16
G4-EN30 Significant environmental impacts of transporting products and goodsmaterialsPartial reporting
(page 25)111213
Social performance indicators
G4-LA1 Total number and rates of new employee hires and employee turnoverPartial reporting
(pages 17 27)8
G4-LA6 Workplace injury ratesPartial reporting
(page 17)38
G4-LA9 Average hours of training per year per employee 28 48
G4-LA12Composition of governance bodies and breakdown of employees according to gender age group etc
27 58
G4-LA13 Ratio of basic salary and total remuneration of women to men 27 5810
Society
G4-SO1 Operations with local community engagement 12 31 16
G4-SO3 Operations assessed for risks related to corruptionPartial reporting
(page 13)
Product responsibility
G4-PR1 Assessment of health and safety impacts for improvement 23 32
G4-PR3 Type of information about products and services required by the procedures 32 12
G4-PR5 Proceedings relating to customer satisfaction including surveys conducted to measure it 33
G4-PR6 Sale of banned or disputed products 32
G4-PR8 Number of substantiated complaints regarding breaches of privacy 32 16
2016 Sustainability Report46
Your Assessment
You are kindly requested to take a few minutes of your time to give us your assessment and any suggestions to enable us to improve future editions of our Sustainability Report
Click here to send us your feedback
To keep up to date with our business
Spazio CEDIT - interior (Milan)
wwwflorimiten
Florim Ceramiche
Florim4Architects
Florim_ceramiche
Florim Ceramiche spa
Florim Ceramiche
Florim Ceramiche
For any further information please feel free to contact our communications department comunicazioneflorimit
2016 Sustainability Report 47
Premio Lucchese - Florim Gallery (Fiorano Modenese - Modena Italy)
Intrapresaelig Guggenheim Collection - Massimo Bottura in Florim Gallery (Fiorano Modenese - Modena Italy)
Panathlon Christmas Gala - Florim Gallery (Fiorano Modenese - Modena Italy)
2016 Sustainability Report48
White Christmas Party - Florim Gallery (Fiorano Modenese - Modena Italy)
Cersaie - Mario Biondi in Florim Gallery (Fiorano Modenese - Modena Italy)
Dal buio alla luce - Social event at Florim Gallery (Fiorano Modenese - Modena Italy)
2016 Sustainability Report 49
Florim Gallery entrance (Fiorano Modenese - MO)
2016 Sustainability Report52
Florim Ceramiche spaVia Canaletto 24 - 41042 Fiorano Modenese (Modena Italy) - Tel +39 0536 840111 - wwwflorimit
2016 Sustainability Report38
Environmental ResponsibilityFlorim USA implements the same environmental policy as Florim and is committed to achieving the following objectives
bull reduction of the energy used in the production processbull improvement of the waste management process with a focus on recovery and reusebull introduction of new more eco-efficient technologiesbull adoption of integrated management systems
Florim USA has been pursuing a strategy of careful management of its operations and environmental impact for a number of years Here we summarise the main actions taken and the results achieved in 2016
bull installation of a latest-generation spray-dryer in 2016bull installation of an innovative raw material handling system in 2016bull 100 recycling of wastewater within the processbull optimisation of the management of water bottles with elimination of about 34200 of them per annumbull reuse of almost all production scrap (+99)bull 157000 kg of cardboard recycled in 2016bull award of two different types of product certificationbull 9300 kg of plastic recycledbull recycling of 17 complete trucks of pallets
Environmental Projects and Awards
Florim USA has received Clarksville Montgomery County Green Certification (CMCGC) CMCGC is a program designed to help companies learn and implement best practices in the area of environmental stewardship to sustain the local communityrsquos resources through a series of free workshops taught by local environmental specialists Since 2014 Florim has allocated some of its Environment Managers time for the running of these workshopsFlorim USA earned this green company certification thanks to a large number of projects first and foremost the one which eliminated the use of disposable water bottles replaced with individual reusable bottles provided by the company and a series of fill-up stations About 34200 bottles are removed from the waste cycle every year
During the latest phase of its plant optimization Florim USA has implemented a thorough construction material reuse policy In the various stages of demolition of the old plants including the old storage silos the concrete debris was recovered and reused in other construction worksThis project alone generated 11500 tons of recycled aggregate as well as several hundred tonnes of metal sold to a recycling firm
Environmental management system and eco-compatible products
Florim USArsquos products help builders and designers to meet the requirements for sustainable buildings as defined by the United States Green Building Council (USGBC) through the LEED Green Building Rating System This protocol evaluates and certifies the environmental sustainability of a building as a unit from its design to its day to day management To gain LEED credits many of the Florim USA product lines contain a significant percentage of recycled material (40 or more)This feature contributes to an increase in the LEED score in the projects where these products are installed In 2014 Florim USA together with a large number of other US tile manufacturers and the Tile Council of North America drew up a type III environmental product declaration (EPD) certified under the ISO 14025 standard This ceramic tile life-cycle analysis enables Florim USA products to gain LEED points under the new LEED v4 protocol
2016 Sustainability Report 39
Water use (gallonsper million square feetof finished tiles)
208137 216246 204962 195280 194268
Energy use
2012 2013 2014 2015 2016
Cubic feet of natural gas per million square feet of finished tiles 9343383 9149721 8331170 8390503 8380000
kWh per million square feet of finished tiles 510972 491171 450594 465976 490300
Emissions
Particulate material lt 21024 tonnes per annum
SO2 (sulphur dioxide) lt 1674 tonnes per annum
VOC (volatile organic compounds) lt 1245 tonnes per annum
NOx (oxides of nitrogen) lt 1501 tonnes per annum
Environmental performance indicators ndash summary
The following are the main environmental indicators related to the impact and performance of Florim USA during 2016
Pre-consumer recycled material
Its internal material recycling processes enable the company to minimise its environmental impact since most of the material which would otherwise be sent to landfills or other waste treatment centers is reusedbull Wastewater is entirely recycled within the production process without any discharge into the municipal drainsbull The material in the collection bags from the tile body and glaze preparation areas the press and glaze application is entirely recycled within the processbull All scrap fired tiles are entirely recycled within the processbull 157000 kg of cardboard was sold to an external recycled material dealerbull 17 trucks of unusable wooden pallets were sold to a pallet regeneration companybull About 9300 kg of waste shrink-wrap plastic film was recovered and recycled
Post-consumer recycled material
About 82000 kg of glass was removed from the flow of waste destined for the local landfill and recycled within the process Florim USA has signed an agreement with the local landfill for consignment of all the glass it handles which is collected and set aside for recycling
Water use disposal and reuse
The water used during the production process is recycled continually therefore no water is discharged into the municipal drains
The 2016 emissions figures are in line with those for previous years well below the standards laid down
Water use 2012 2013 2014 2015 2016
Water use (gallons per million square feet of finished tiles) 216246 204962 195280 194268 203928
2016 Sustainability Report40
Social Responsibility
Employees
The Florim USA workforce comprises 348 staff employed at the production site the Clarksville and Nashville outlet stores and the Florim Solution offices Of the 348 employees 273 are blue-collar workers and 75 office staff 5 employees are Italians on secondment to the United States Florim USA offers a number of benefits to full time employeesbull health and dental care insurancebull Vision insurancebull life insurance for employees and optionally for family membersbull temporary and permanent disability supportbull employee pension plan
2012 2013 2014 2015 2016
Workplace injuries 50 41 22 29 27
The Employee Assistance Program (EAP) also offers support to employees and their families in the event of psychological difficulty or other problems that can have a negative impact on their quality of life Florim USA supports all the costs of the program
Equal opportunities
Florim USA provides equal opportunities in all employment practices to all qualified employees and applicants regardless of race colour religion gender national origin age disability or membership of the armed forces or any other category protected by federal state or local laws
Health and safety
FLORIM USA is committed to ensuring a safe healthy workplace for all employees It therefore replaces old and obsolete equipment with new technologically more modern machinery and updates safety plans as new information gradually becomes availableAs well as an internal supervisor Florim USA has also appointed a health and safety committee which constantly monitors the plans effectiveness and makes any changes requiredThere are currently 20 plant employees who hold CPRfirst aid qualifications They occupy a variety of positions and work different shifts within the plant and have volunteered to attend training courses sponsored by the company for the award of these qualifications
Training
In 2016 every Florim USA employee attended an average of about 25 hours of training The training provided covered the operating procedures for the new equipment the main safety plans and the procedures for use of existing equipment for new employeesAll new staff undergo specific training for their department focusing on the safety-related aspects of the department concerned as well as more generalized safety training
Some of these themes includebull safe correct use of forklift trucksbull training on work in confined spacesbull shutdownwarning procedures and safe electrical practicesbull safe lifting procedures
2016 Sustainability Report 41
Florim USA ndash (Clarksville Tennessee)
For employees wishing to continue their education Florim USA offers assistance through the Educational Assistance Program It provides aid with the cost of education and textbooks and is available for any employee wishing to study for a technical qualification a diploma or a degreeThe plant staff training and education plan also includes various training schemes at Florim Italy where employees are instructed in the use of new equipment before it is installed at the American plantThroughout 2016 Florim USA will continue to provide a free e-learning course on its website for architects engineers and contractors (AEC) to improve their knowledge of sustainable porcelain stoneware tiles
Employee welfare activities
Florim USA employee picnic - In 2016 the company once again held its annual picnic for employees offering them a wide variety of foods games activities and live shows in an event which provided an unforgettable days enjoyment Within the event participants received prizes in the form of vouchers and gifts
Employee anniversary dinner - 2016 again saw the usual dinner to honour Florim USA employees with 5 10 15 20 or more years of service A special evening event was held in the presence of the Chairman and the other managers to celebrate the loyalty and hard work these employees have contributed during their careers with the firm
2016 Sustainability Report42
Local Community
During 2016 Florim USA continued to provide its support to a number of projects in its local areaSome of the main projects include
Scholarships - As part of its work to support the local community Florim has an established scheme which awards scholarships to deserving students at the Austin Peay State University in memory of Florim Group founder Giovanni Lucchese In December 2016 a delegation of Florim representatives attended a scholarship presentation lunch at the Austin Peay State University hosted by the President of the University
Montgomery County Green Certification Program - Florim USA staff actively participate in the Montgomery County Green Certification Program which aims to help companies learn and implement best practices with regard to safeguarding the environment and environmental resources
Donations - In 2016 the company again made a large number of donationsbull book collection for the Austin Peay State University Employees made a generous donation of used books in good condition for children and young people of the APSU in the hope of further promoting the education of future generationsbull to Community Cares the national organization that promotes the acceptance and social inclusion of individuals with Downs Syndromebull to the Aspire Clarksville Foundation a 501(c)(3) charitable foundation whose mission is to continuously improve the economy and the livability (quality of life) of the community by attracting significant capital investment and expansion by businesses and corporations thereby creating better opportunities and higher paying jobs for residentsbull to the Alzheimerrsquos Association a non-profit voluntary organization dedicated to the care and support of Alzheimers Disease sufferers and research into the condition Its aim is to eliminate the disease through the advancement of research to provide and enhance care and support for all affected and to reduce the risk of dementia through the promotion of brain health
Other activities - Every year Florim USA participates in the United Way Drive initiative to support local non-profit organizations which provide economic assistance and psychological support to persons in difficulty
Florim USA provides regular support to the Salvation Army by collecting canned foods for persons in needIn 2016 the company again organised a canned food collection for Manna Cafeacute in Clarksville TN Manna Cafeacute is a local non-profit organization based in Middle Tennessee with the primary mission of meeting peoples fundamental need for food before encouraging them to permanently change their lives for the better More than 15 of the population in Montgomery County are affected by food insecurity (about 28000 people) The percentage of children affected is about 215 a third of whom are excluded by income from federal programs such as free school mealsFinally donations were made tobull American Lung Association the leading organization working to save lives by improving lung health and preventing lung disease through research and educationbull Cheer for a Cure an organization that gives money directly to afflicting families who have a loved one suffering from cancer and need assistance to alleviate the added financial stressbull Habitat for Humanity Since 1992 Habitat for Humanity in Montgomery County Tennessee has worked with 93 low-income families with more than 210 children to revitalise various parts of Clarksville-Montgomery County by building new homes
2016 Sustainability Report 43
Quality SystemFlorim USA works under a Quality System certified to UNI EN ISO 9001 standards The following are some of the figures in brief
Objective Indicator 2012 2013 2014 2015 2016
Optimisation of control of the production process
Percentage of First Grade Product ()
932 917 940 949 9510
Quality rate () 883 857 893 906 909
Scrap rate () 56 65 48 45 45
KeyPercentage of first grade product ratio between square feet of first grade material and total square feet transferred to stockQuality rate ratio between square feet of first grade material transferred to stock and square feet pressedScrap rate ratio between square feet pressed and square feet of product actually transferred to stock
Other ActivitiesFlorim USA and trade shows
In 2016 Florim USA participated at a number of shows and events including Coverings the AIA Tennessee Convention Hardscape North America Total Solutions Plus Neocon International Pool - Spa and Patio Expo These events targeted at the various categories of industry professionals such as dealers and designers gave Florim USA the opportunity to present its new range of indoor and outdoor products
Design Center
In December 2015 Florim USA opened a design center showroom in Nashville (TN) in a strategic location close to the airport and the city center With a spacious area to host individual CEU presentations and workshops this design center has the potential to be a major resource for local architects In 2016 it was also awarded the ldquoOutstanding Boothrdquo booth prize at the 33rd edition of the Annual Home Decorating and Remodeling Show The location is the ideal place for sharing ideas finding inspiration and putting professionals and architects in touch with each other
Florim Nashville Design Center
2016 Sustainability Report44
GRI International Sustainability Indicators SDGsThe information below illustrates the correspondence between the Florim (Italian companies) 2016 Sustainability Report the GRI-G4 guidelines and the icons of the Sustainable Development Goals (SDGs) definitively adopted by the United NationsA description of the SDGs is available at wwwglobalcompactnetworkorg
GRI indicators
Description Page Reference to SDGs
1 Strategy and Analysis
G4-1 Statement from the most senior decision-maker of the organization 5
2 Organization profile
G4-3 Name of the organization 2
G4-4 Primary brands products andor services 9
G4-5 Location of the organizations headquarters 9
G4-6 Number and names of the countries where the organization operates 9
G4-7 Nature of ownership and legal form 14
G4-8 Markets served 9
G4-9 Scale of the organization 8 8
G4-10 Significant changes regarding size structure or ownership 8
G4-11 Employees covered by National Collective Bargaining Agreement 27
G4-12 Describe the supply chain 16
G4-13Significant changes regarding the organizationrsquos size structure ownership or its supply chain
Reporting process
launched
G4-14 Precautionary principle 22
G4-15 List of external commitments in which the company is involved 22 32 33
G4-16 Associations or interest groups in which the company is involvedwwwflorimit gt
about us gt partnerships
3 Identified material aspects and boundaries
G4-18 Process used to define the report content 6
G4-19 Material aspects 16
G4-20 Boundaries of each material aspect 6
G4-21 Boundaries of each material aspect outside the organizationPartial reporting
(pages 6 16)
G4-22 Explanation of the effect of any restatements of information provided in previous reports 6
G4-23Significant changes from previous reporting periods in the scope boundaries or measurement methods
6
3 Stakeholder engagement
G4-24 List of stakeholders 15
G4-25 Identification of stakeholders 15
G4-26 Stakeholder engagement 6 16
G4-27 Key topics and concerns that have been raised through stakeholder engagement 16
4 Boundary of the Report
G4-28 Reporting period 6
G4-29 Date of publication 2
G4-30 Reporting cycle 6
G4-31 Contacts and addresses for additional information 46
5 GRI Content Index
G4-32 Reporting option chosen 6 7
G4-33 External assurance of ReportThe Report is not
externally assured
2016 Sustainability Report 45
GRI indicators
Description Page Reference to SDGs
6 Governance
G4-34 Governance structure 14
7 Ethics and integrity
G4-56 Values principles standards and norms of behavior 13 16
Economic performance indicators
EC1 Direct economic value generated and distributed 19 25789
EC5 Wages 27 158
EC7 Development and impact of infrastructure investments and services supported 23 24 31 257911
Environmental performance indicators
G4-EN2 Percentage of materials used that are recycled input materials 17 22 23 812
G4-EN3 Energy consumption within the organization 24 781213
G4-EN6 Reduction of energy consumption 17 24 71213
G4-EN7 Reductions in energy requirements of products and servicesPartial reporting
(page 22)71213
G4-EN8 Total water withdrawal by source 17 23 6
G4-EN10 Percentage and total volume of water recycled and reused 17 21 23 612
G4-EN11 Biodiversity 23 615
G4-EN15 Total indirect greenhouse gas emissions by weight 25 3121315
G4-EN16 Total indirect greenhouse gas emissions by weight 25 3121315
G4-EN19 Reduction of greenhouse gas emissions 8 24 1315
G4-EN21 NOx SOx and other significant air emissions 25 31215
G4-EN22 Total water discharge by quality and destination 23 6
G4-EN23 Total weight of waste by type 17 22 3612
G4-EN27 Impact mitigation of environmental impacts of products and services 23 68121315
G4-EN29 Monetary value of significant fines 22 16
G4-EN30 Significant environmental impacts of transporting products and goodsmaterialsPartial reporting
(page 25)111213
Social performance indicators
G4-LA1 Total number and rates of new employee hires and employee turnoverPartial reporting
(pages 17 27)8
G4-LA6 Workplace injury ratesPartial reporting
(page 17)38
G4-LA9 Average hours of training per year per employee 28 48
G4-LA12Composition of governance bodies and breakdown of employees according to gender age group etc
27 58
G4-LA13 Ratio of basic salary and total remuneration of women to men 27 5810
Society
G4-SO1 Operations with local community engagement 12 31 16
G4-SO3 Operations assessed for risks related to corruptionPartial reporting
(page 13)
Product responsibility
G4-PR1 Assessment of health and safety impacts for improvement 23 32
G4-PR3 Type of information about products and services required by the procedures 32 12
G4-PR5 Proceedings relating to customer satisfaction including surveys conducted to measure it 33
G4-PR6 Sale of banned or disputed products 32
G4-PR8 Number of substantiated complaints regarding breaches of privacy 32 16
2016 Sustainability Report46
Your Assessment
You are kindly requested to take a few minutes of your time to give us your assessment and any suggestions to enable us to improve future editions of our Sustainability Report
Click here to send us your feedback
To keep up to date with our business
Spazio CEDIT - interior (Milan)
wwwflorimiten
Florim Ceramiche
Florim4Architects
Florim_ceramiche
Florim Ceramiche spa
Florim Ceramiche
Florim Ceramiche
For any further information please feel free to contact our communications department comunicazioneflorimit
2016 Sustainability Report 47
Premio Lucchese - Florim Gallery (Fiorano Modenese - Modena Italy)
Intrapresaelig Guggenheim Collection - Massimo Bottura in Florim Gallery (Fiorano Modenese - Modena Italy)
Panathlon Christmas Gala - Florim Gallery (Fiorano Modenese - Modena Italy)
2016 Sustainability Report48
White Christmas Party - Florim Gallery (Fiorano Modenese - Modena Italy)
Cersaie - Mario Biondi in Florim Gallery (Fiorano Modenese - Modena Italy)
Dal buio alla luce - Social event at Florim Gallery (Fiorano Modenese - Modena Italy)
2016 Sustainability Report 49
Florim Gallery entrance (Fiorano Modenese - MO)
2016 Sustainability Report52
Florim Ceramiche spaVia Canaletto 24 - 41042 Fiorano Modenese (Modena Italy) - Tel +39 0536 840111 - wwwflorimit
2016 Sustainability Report 39
Water use (gallonsper million square feetof finished tiles)
208137 216246 204962 195280 194268
Energy use
2012 2013 2014 2015 2016
Cubic feet of natural gas per million square feet of finished tiles 9343383 9149721 8331170 8390503 8380000
kWh per million square feet of finished tiles 510972 491171 450594 465976 490300
Emissions
Particulate material lt 21024 tonnes per annum
SO2 (sulphur dioxide) lt 1674 tonnes per annum
VOC (volatile organic compounds) lt 1245 tonnes per annum
NOx (oxides of nitrogen) lt 1501 tonnes per annum
Environmental performance indicators ndash summary
The following are the main environmental indicators related to the impact and performance of Florim USA during 2016
Pre-consumer recycled material
Its internal material recycling processes enable the company to minimise its environmental impact since most of the material which would otherwise be sent to landfills or other waste treatment centers is reusedbull Wastewater is entirely recycled within the production process without any discharge into the municipal drainsbull The material in the collection bags from the tile body and glaze preparation areas the press and glaze application is entirely recycled within the processbull All scrap fired tiles are entirely recycled within the processbull 157000 kg of cardboard was sold to an external recycled material dealerbull 17 trucks of unusable wooden pallets were sold to a pallet regeneration companybull About 9300 kg of waste shrink-wrap plastic film was recovered and recycled
Post-consumer recycled material
About 82000 kg of glass was removed from the flow of waste destined for the local landfill and recycled within the process Florim USA has signed an agreement with the local landfill for consignment of all the glass it handles which is collected and set aside for recycling
Water use disposal and reuse
The water used during the production process is recycled continually therefore no water is discharged into the municipal drains
The 2016 emissions figures are in line with those for previous years well below the standards laid down
Water use 2012 2013 2014 2015 2016
Water use (gallons per million square feet of finished tiles) 216246 204962 195280 194268 203928
2016 Sustainability Report40
Social Responsibility
Employees
The Florim USA workforce comprises 348 staff employed at the production site the Clarksville and Nashville outlet stores and the Florim Solution offices Of the 348 employees 273 are blue-collar workers and 75 office staff 5 employees are Italians on secondment to the United States Florim USA offers a number of benefits to full time employeesbull health and dental care insurancebull Vision insurancebull life insurance for employees and optionally for family membersbull temporary and permanent disability supportbull employee pension plan
2012 2013 2014 2015 2016
Workplace injuries 50 41 22 29 27
The Employee Assistance Program (EAP) also offers support to employees and their families in the event of psychological difficulty or other problems that can have a negative impact on their quality of life Florim USA supports all the costs of the program
Equal opportunities
Florim USA provides equal opportunities in all employment practices to all qualified employees and applicants regardless of race colour religion gender national origin age disability or membership of the armed forces or any other category protected by federal state or local laws
Health and safety
FLORIM USA is committed to ensuring a safe healthy workplace for all employees It therefore replaces old and obsolete equipment with new technologically more modern machinery and updates safety plans as new information gradually becomes availableAs well as an internal supervisor Florim USA has also appointed a health and safety committee which constantly monitors the plans effectiveness and makes any changes requiredThere are currently 20 plant employees who hold CPRfirst aid qualifications They occupy a variety of positions and work different shifts within the plant and have volunteered to attend training courses sponsored by the company for the award of these qualifications
Training
In 2016 every Florim USA employee attended an average of about 25 hours of training The training provided covered the operating procedures for the new equipment the main safety plans and the procedures for use of existing equipment for new employeesAll new staff undergo specific training for their department focusing on the safety-related aspects of the department concerned as well as more generalized safety training
Some of these themes includebull safe correct use of forklift trucksbull training on work in confined spacesbull shutdownwarning procedures and safe electrical practicesbull safe lifting procedures
2016 Sustainability Report 41
Florim USA ndash (Clarksville Tennessee)
For employees wishing to continue their education Florim USA offers assistance through the Educational Assistance Program It provides aid with the cost of education and textbooks and is available for any employee wishing to study for a technical qualification a diploma or a degreeThe plant staff training and education plan also includes various training schemes at Florim Italy where employees are instructed in the use of new equipment before it is installed at the American plantThroughout 2016 Florim USA will continue to provide a free e-learning course on its website for architects engineers and contractors (AEC) to improve their knowledge of sustainable porcelain stoneware tiles
Employee welfare activities
Florim USA employee picnic - In 2016 the company once again held its annual picnic for employees offering them a wide variety of foods games activities and live shows in an event which provided an unforgettable days enjoyment Within the event participants received prizes in the form of vouchers and gifts
Employee anniversary dinner - 2016 again saw the usual dinner to honour Florim USA employees with 5 10 15 20 or more years of service A special evening event was held in the presence of the Chairman and the other managers to celebrate the loyalty and hard work these employees have contributed during their careers with the firm
2016 Sustainability Report42
Local Community
During 2016 Florim USA continued to provide its support to a number of projects in its local areaSome of the main projects include
Scholarships - As part of its work to support the local community Florim has an established scheme which awards scholarships to deserving students at the Austin Peay State University in memory of Florim Group founder Giovanni Lucchese In December 2016 a delegation of Florim representatives attended a scholarship presentation lunch at the Austin Peay State University hosted by the President of the University
Montgomery County Green Certification Program - Florim USA staff actively participate in the Montgomery County Green Certification Program which aims to help companies learn and implement best practices with regard to safeguarding the environment and environmental resources
Donations - In 2016 the company again made a large number of donationsbull book collection for the Austin Peay State University Employees made a generous donation of used books in good condition for children and young people of the APSU in the hope of further promoting the education of future generationsbull to Community Cares the national organization that promotes the acceptance and social inclusion of individuals with Downs Syndromebull to the Aspire Clarksville Foundation a 501(c)(3) charitable foundation whose mission is to continuously improve the economy and the livability (quality of life) of the community by attracting significant capital investment and expansion by businesses and corporations thereby creating better opportunities and higher paying jobs for residentsbull to the Alzheimerrsquos Association a non-profit voluntary organization dedicated to the care and support of Alzheimers Disease sufferers and research into the condition Its aim is to eliminate the disease through the advancement of research to provide and enhance care and support for all affected and to reduce the risk of dementia through the promotion of brain health
Other activities - Every year Florim USA participates in the United Way Drive initiative to support local non-profit organizations which provide economic assistance and psychological support to persons in difficulty
Florim USA provides regular support to the Salvation Army by collecting canned foods for persons in needIn 2016 the company again organised a canned food collection for Manna Cafeacute in Clarksville TN Manna Cafeacute is a local non-profit organization based in Middle Tennessee with the primary mission of meeting peoples fundamental need for food before encouraging them to permanently change their lives for the better More than 15 of the population in Montgomery County are affected by food insecurity (about 28000 people) The percentage of children affected is about 215 a third of whom are excluded by income from federal programs such as free school mealsFinally donations were made tobull American Lung Association the leading organization working to save lives by improving lung health and preventing lung disease through research and educationbull Cheer for a Cure an organization that gives money directly to afflicting families who have a loved one suffering from cancer and need assistance to alleviate the added financial stressbull Habitat for Humanity Since 1992 Habitat for Humanity in Montgomery County Tennessee has worked with 93 low-income families with more than 210 children to revitalise various parts of Clarksville-Montgomery County by building new homes
2016 Sustainability Report 43
Quality SystemFlorim USA works under a Quality System certified to UNI EN ISO 9001 standards The following are some of the figures in brief
Objective Indicator 2012 2013 2014 2015 2016
Optimisation of control of the production process
Percentage of First Grade Product ()
932 917 940 949 9510
Quality rate () 883 857 893 906 909
Scrap rate () 56 65 48 45 45
KeyPercentage of first grade product ratio between square feet of first grade material and total square feet transferred to stockQuality rate ratio between square feet of first grade material transferred to stock and square feet pressedScrap rate ratio between square feet pressed and square feet of product actually transferred to stock
Other ActivitiesFlorim USA and trade shows
In 2016 Florim USA participated at a number of shows and events including Coverings the AIA Tennessee Convention Hardscape North America Total Solutions Plus Neocon International Pool - Spa and Patio Expo These events targeted at the various categories of industry professionals such as dealers and designers gave Florim USA the opportunity to present its new range of indoor and outdoor products
Design Center
In December 2015 Florim USA opened a design center showroom in Nashville (TN) in a strategic location close to the airport and the city center With a spacious area to host individual CEU presentations and workshops this design center has the potential to be a major resource for local architects In 2016 it was also awarded the ldquoOutstanding Boothrdquo booth prize at the 33rd edition of the Annual Home Decorating and Remodeling Show The location is the ideal place for sharing ideas finding inspiration and putting professionals and architects in touch with each other
Florim Nashville Design Center
2016 Sustainability Report44
GRI International Sustainability Indicators SDGsThe information below illustrates the correspondence between the Florim (Italian companies) 2016 Sustainability Report the GRI-G4 guidelines and the icons of the Sustainable Development Goals (SDGs) definitively adopted by the United NationsA description of the SDGs is available at wwwglobalcompactnetworkorg
GRI indicators
Description Page Reference to SDGs
1 Strategy and Analysis
G4-1 Statement from the most senior decision-maker of the organization 5
2 Organization profile
G4-3 Name of the organization 2
G4-4 Primary brands products andor services 9
G4-5 Location of the organizations headquarters 9
G4-6 Number and names of the countries where the organization operates 9
G4-7 Nature of ownership and legal form 14
G4-8 Markets served 9
G4-9 Scale of the organization 8 8
G4-10 Significant changes regarding size structure or ownership 8
G4-11 Employees covered by National Collective Bargaining Agreement 27
G4-12 Describe the supply chain 16
G4-13Significant changes regarding the organizationrsquos size structure ownership or its supply chain
Reporting process
launched
G4-14 Precautionary principle 22
G4-15 List of external commitments in which the company is involved 22 32 33
G4-16 Associations or interest groups in which the company is involvedwwwflorimit gt
about us gt partnerships
3 Identified material aspects and boundaries
G4-18 Process used to define the report content 6
G4-19 Material aspects 16
G4-20 Boundaries of each material aspect 6
G4-21 Boundaries of each material aspect outside the organizationPartial reporting
(pages 6 16)
G4-22 Explanation of the effect of any restatements of information provided in previous reports 6
G4-23Significant changes from previous reporting periods in the scope boundaries or measurement methods
6
3 Stakeholder engagement
G4-24 List of stakeholders 15
G4-25 Identification of stakeholders 15
G4-26 Stakeholder engagement 6 16
G4-27 Key topics and concerns that have been raised through stakeholder engagement 16
4 Boundary of the Report
G4-28 Reporting period 6
G4-29 Date of publication 2
G4-30 Reporting cycle 6
G4-31 Contacts and addresses for additional information 46
5 GRI Content Index
G4-32 Reporting option chosen 6 7
G4-33 External assurance of ReportThe Report is not
externally assured
2016 Sustainability Report 45
GRI indicators
Description Page Reference to SDGs
6 Governance
G4-34 Governance structure 14
7 Ethics and integrity
G4-56 Values principles standards and norms of behavior 13 16
Economic performance indicators
EC1 Direct economic value generated and distributed 19 25789
EC5 Wages 27 158
EC7 Development and impact of infrastructure investments and services supported 23 24 31 257911
Environmental performance indicators
G4-EN2 Percentage of materials used that are recycled input materials 17 22 23 812
G4-EN3 Energy consumption within the organization 24 781213
G4-EN6 Reduction of energy consumption 17 24 71213
G4-EN7 Reductions in energy requirements of products and servicesPartial reporting
(page 22)71213
G4-EN8 Total water withdrawal by source 17 23 6
G4-EN10 Percentage and total volume of water recycled and reused 17 21 23 612
G4-EN11 Biodiversity 23 615
G4-EN15 Total indirect greenhouse gas emissions by weight 25 3121315
G4-EN16 Total indirect greenhouse gas emissions by weight 25 3121315
G4-EN19 Reduction of greenhouse gas emissions 8 24 1315
G4-EN21 NOx SOx and other significant air emissions 25 31215
G4-EN22 Total water discharge by quality and destination 23 6
G4-EN23 Total weight of waste by type 17 22 3612
G4-EN27 Impact mitigation of environmental impacts of products and services 23 68121315
G4-EN29 Monetary value of significant fines 22 16
G4-EN30 Significant environmental impacts of transporting products and goodsmaterialsPartial reporting
(page 25)111213
Social performance indicators
G4-LA1 Total number and rates of new employee hires and employee turnoverPartial reporting
(pages 17 27)8
G4-LA6 Workplace injury ratesPartial reporting
(page 17)38
G4-LA9 Average hours of training per year per employee 28 48
G4-LA12Composition of governance bodies and breakdown of employees according to gender age group etc
27 58
G4-LA13 Ratio of basic salary and total remuneration of women to men 27 5810
Society
G4-SO1 Operations with local community engagement 12 31 16
G4-SO3 Operations assessed for risks related to corruptionPartial reporting
(page 13)
Product responsibility
G4-PR1 Assessment of health and safety impacts for improvement 23 32
G4-PR3 Type of information about products and services required by the procedures 32 12
G4-PR5 Proceedings relating to customer satisfaction including surveys conducted to measure it 33
G4-PR6 Sale of banned or disputed products 32
G4-PR8 Number of substantiated complaints regarding breaches of privacy 32 16
2016 Sustainability Report46
Your Assessment
You are kindly requested to take a few minutes of your time to give us your assessment and any suggestions to enable us to improve future editions of our Sustainability Report
Click here to send us your feedback
To keep up to date with our business
Spazio CEDIT - interior (Milan)
wwwflorimiten
Florim Ceramiche
Florim4Architects
Florim_ceramiche
Florim Ceramiche spa
Florim Ceramiche
Florim Ceramiche
For any further information please feel free to contact our communications department comunicazioneflorimit
2016 Sustainability Report 47
Premio Lucchese - Florim Gallery (Fiorano Modenese - Modena Italy)
Intrapresaelig Guggenheim Collection - Massimo Bottura in Florim Gallery (Fiorano Modenese - Modena Italy)
Panathlon Christmas Gala - Florim Gallery (Fiorano Modenese - Modena Italy)
2016 Sustainability Report48
White Christmas Party - Florim Gallery (Fiorano Modenese - Modena Italy)
Cersaie - Mario Biondi in Florim Gallery (Fiorano Modenese - Modena Italy)
Dal buio alla luce - Social event at Florim Gallery (Fiorano Modenese - Modena Italy)
2016 Sustainability Report 49
Florim Gallery entrance (Fiorano Modenese - MO)
2016 Sustainability Report52
Florim Ceramiche spaVia Canaletto 24 - 41042 Fiorano Modenese (Modena Italy) - Tel +39 0536 840111 - wwwflorimit
2016 Sustainability Report40
Social Responsibility
Employees
The Florim USA workforce comprises 348 staff employed at the production site the Clarksville and Nashville outlet stores and the Florim Solution offices Of the 348 employees 273 are blue-collar workers and 75 office staff 5 employees are Italians on secondment to the United States Florim USA offers a number of benefits to full time employeesbull health and dental care insurancebull Vision insurancebull life insurance for employees and optionally for family membersbull temporary and permanent disability supportbull employee pension plan
2012 2013 2014 2015 2016
Workplace injuries 50 41 22 29 27
The Employee Assistance Program (EAP) also offers support to employees and their families in the event of psychological difficulty or other problems that can have a negative impact on their quality of life Florim USA supports all the costs of the program
Equal opportunities
Florim USA provides equal opportunities in all employment practices to all qualified employees and applicants regardless of race colour religion gender national origin age disability or membership of the armed forces or any other category protected by federal state or local laws
Health and safety
FLORIM USA is committed to ensuring a safe healthy workplace for all employees It therefore replaces old and obsolete equipment with new technologically more modern machinery and updates safety plans as new information gradually becomes availableAs well as an internal supervisor Florim USA has also appointed a health and safety committee which constantly monitors the plans effectiveness and makes any changes requiredThere are currently 20 plant employees who hold CPRfirst aid qualifications They occupy a variety of positions and work different shifts within the plant and have volunteered to attend training courses sponsored by the company for the award of these qualifications
Training
In 2016 every Florim USA employee attended an average of about 25 hours of training The training provided covered the operating procedures for the new equipment the main safety plans and the procedures for use of existing equipment for new employeesAll new staff undergo specific training for their department focusing on the safety-related aspects of the department concerned as well as more generalized safety training
Some of these themes includebull safe correct use of forklift trucksbull training on work in confined spacesbull shutdownwarning procedures and safe electrical practicesbull safe lifting procedures
2016 Sustainability Report 41
Florim USA ndash (Clarksville Tennessee)
For employees wishing to continue their education Florim USA offers assistance through the Educational Assistance Program It provides aid with the cost of education and textbooks and is available for any employee wishing to study for a technical qualification a diploma or a degreeThe plant staff training and education plan also includes various training schemes at Florim Italy where employees are instructed in the use of new equipment before it is installed at the American plantThroughout 2016 Florim USA will continue to provide a free e-learning course on its website for architects engineers and contractors (AEC) to improve their knowledge of sustainable porcelain stoneware tiles
Employee welfare activities
Florim USA employee picnic - In 2016 the company once again held its annual picnic for employees offering them a wide variety of foods games activities and live shows in an event which provided an unforgettable days enjoyment Within the event participants received prizes in the form of vouchers and gifts
Employee anniversary dinner - 2016 again saw the usual dinner to honour Florim USA employees with 5 10 15 20 or more years of service A special evening event was held in the presence of the Chairman and the other managers to celebrate the loyalty and hard work these employees have contributed during their careers with the firm
2016 Sustainability Report42
Local Community
During 2016 Florim USA continued to provide its support to a number of projects in its local areaSome of the main projects include
Scholarships - As part of its work to support the local community Florim has an established scheme which awards scholarships to deserving students at the Austin Peay State University in memory of Florim Group founder Giovanni Lucchese In December 2016 a delegation of Florim representatives attended a scholarship presentation lunch at the Austin Peay State University hosted by the President of the University
Montgomery County Green Certification Program - Florim USA staff actively participate in the Montgomery County Green Certification Program which aims to help companies learn and implement best practices with regard to safeguarding the environment and environmental resources
Donations - In 2016 the company again made a large number of donationsbull book collection for the Austin Peay State University Employees made a generous donation of used books in good condition for children and young people of the APSU in the hope of further promoting the education of future generationsbull to Community Cares the national organization that promotes the acceptance and social inclusion of individuals with Downs Syndromebull to the Aspire Clarksville Foundation a 501(c)(3) charitable foundation whose mission is to continuously improve the economy and the livability (quality of life) of the community by attracting significant capital investment and expansion by businesses and corporations thereby creating better opportunities and higher paying jobs for residentsbull to the Alzheimerrsquos Association a non-profit voluntary organization dedicated to the care and support of Alzheimers Disease sufferers and research into the condition Its aim is to eliminate the disease through the advancement of research to provide and enhance care and support for all affected and to reduce the risk of dementia through the promotion of brain health
Other activities - Every year Florim USA participates in the United Way Drive initiative to support local non-profit organizations which provide economic assistance and psychological support to persons in difficulty
Florim USA provides regular support to the Salvation Army by collecting canned foods for persons in needIn 2016 the company again organised a canned food collection for Manna Cafeacute in Clarksville TN Manna Cafeacute is a local non-profit organization based in Middle Tennessee with the primary mission of meeting peoples fundamental need for food before encouraging them to permanently change their lives for the better More than 15 of the population in Montgomery County are affected by food insecurity (about 28000 people) The percentage of children affected is about 215 a third of whom are excluded by income from federal programs such as free school mealsFinally donations were made tobull American Lung Association the leading organization working to save lives by improving lung health and preventing lung disease through research and educationbull Cheer for a Cure an organization that gives money directly to afflicting families who have a loved one suffering from cancer and need assistance to alleviate the added financial stressbull Habitat for Humanity Since 1992 Habitat for Humanity in Montgomery County Tennessee has worked with 93 low-income families with more than 210 children to revitalise various parts of Clarksville-Montgomery County by building new homes
2016 Sustainability Report 43
Quality SystemFlorim USA works under a Quality System certified to UNI EN ISO 9001 standards The following are some of the figures in brief
Objective Indicator 2012 2013 2014 2015 2016
Optimisation of control of the production process
Percentage of First Grade Product ()
932 917 940 949 9510
Quality rate () 883 857 893 906 909
Scrap rate () 56 65 48 45 45
KeyPercentage of first grade product ratio between square feet of first grade material and total square feet transferred to stockQuality rate ratio between square feet of first grade material transferred to stock and square feet pressedScrap rate ratio between square feet pressed and square feet of product actually transferred to stock
Other ActivitiesFlorim USA and trade shows
In 2016 Florim USA participated at a number of shows and events including Coverings the AIA Tennessee Convention Hardscape North America Total Solutions Plus Neocon International Pool - Spa and Patio Expo These events targeted at the various categories of industry professionals such as dealers and designers gave Florim USA the opportunity to present its new range of indoor and outdoor products
Design Center
In December 2015 Florim USA opened a design center showroom in Nashville (TN) in a strategic location close to the airport and the city center With a spacious area to host individual CEU presentations and workshops this design center has the potential to be a major resource for local architects In 2016 it was also awarded the ldquoOutstanding Boothrdquo booth prize at the 33rd edition of the Annual Home Decorating and Remodeling Show The location is the ideal place for sharing ideas finding inspiration and putting professionals and architects in touch with each other
Florim Nashville Design Center
2016 Sustainability Report44
GRI International Sustainability Indicators SDGsThe information below illustrates the correspondence between the Florim (Italian companies) 2016 Sustainability Report the GRI-G4 guidelines and the icons of the Sustainable Development Goals (SDGs) definitively adopted by the United NationsA description of the SDGs is available at wwwglobalcompactnetworkorg
GRI indicators
Description Page Reference to SDGs
1 Strategy and Analysis
G4-1 Statement from the most senior decision-maker of the organization 5
2 Organization profile
G4-3 Name of the organization 2
G4-4 Primary brands products andor services 9
G4-5 Location of the organizations headquarters 9
G4-6 Number and names of the countries where the organization operates 9
G4-7 Nature of ownership and legal form 14
G4-8 Markets served 9
G4-9 Scale of the organization 8 8
G4-10 Significant changes regarding size structure or ownership 8
G4-11 Employees covered by National Collective Bargaining Agreement 27
G4-12 Describe the supply chain 16
G4-13Significant changes regarding the organizationrsquos size structure ownership or its supply chain
Reporting process
launched
G4-14 Precautionary principle 22
G4-15 List of external commitments in which the company is involved 22 32 33
G4-16 Associations or interest groups in which the company is involvedwwwflorimit gt
about us gt partnerships
3 Identified material aspects and boundaries
G4-18 Process used to define the report content 6
G4-19 Material aspects 16
G4-20 Boundaries of each material aspect 6
G4-21 Boundaries of each material aspect outside the organizationPartial reporting
(pages 6 16)
G4-22 Explanation of the effect of any restatements of information provided in previous reports 6
G4-23Significant changes from previous reporting periods in the scope boundaries or measurement methods
6
3 Stakeholder engagement
G4-24 List of stakeholders 15
G4-25 Identification of stakeholders 15
G4-26 Stakeholder engagement 6 16
G4-27 Key topics and concerns that have been raised through stakeholder engagement 16
4 Boundary of the Report
G4-28 Reporting period 6
G4-29 Date of publication 2
G4-30 Reporting cycle 6
G4-31 Contacts and addresses for additional information 46
5 GRI Content Index
G4-32 Reporting option chosen 6 7
G4-33 External assurance of ReportThe Report is not
externally assured
2016 Sustainability Report 45
GRI indicators
Description Page Reference to SDGs
6 Governance
G4-34 Governance structure 14
7 Ethics and integrity
G4-56 Values principles standards and norms of behavior 13 16
Economic performance indicators
EC1 Direct economic value generated and distributed 19 25789
EC5 Wages 27 158
EC7 Development and impact of infrastructure investments and services supported 23 24 31 257911
Environmental performance indicators
G4-EN2 Percentage of materials used that are recycled input materials 17 22 23 812
G4-EN3 Energy consumption within the organization 24 781213
G4-EN6 Reduction of energy consumption 17 24 71213
G4-EN7 Reductions in energy requirements of products and servicesPartial reporting
(page 22)71213
G4-EN8 Total water withdrawal by source 17 23 6
G4-EN10 Percentage and total volume of water recycled and reused 17 21 23 612
G4-EN11 Biodiversity 23 615
G4-EN15 Total indirect greenhouse gas emissions by weight 25 3121315
G4-EN16 Total indirect greenhouse gas emissions by weight 25 3121315
G4-EN19 Reduction of greenhouse gas emissions 8 24 1315
G4-EN21 NOx SOx and other significant air emissions 25 31215
G4-EN22 Total water discharge by quality and destination 23 6
G4-EN23 Total weight of waste by type 17 22 3612
G4-EN27 Impact mitigation of environmental impacts of products and services 23 68121315
G4-EN29 Monetary value of significant fines 22 16
G4-EN30 Significant environmental impacts of transporting products and goodsmaterialsPartial reporting
(page 25)111213
Social performance indicators
G4-LA1 Total number and rates of new employee hires and employee turnoverPartial reporting
(pages 17 27)8
G4-LA6 Workplace injury ratesPartial reporting
(page 17)38
G4-LA9 Average hours of training per year per employee 28 48
G4-LA12Composition of governance bodies and breakdown of employees according to gender age group etc
27 58
G4-LA13 Ratio of basic salary and total remuneration of women to men 27 5810
Society
G4-SO1 Operations with local community engagement 12 31 16
G4-SO3 Operations assessed for risks related to corruptionPartial reporting
(page 13)
Product responsibility
G4-PR1 Assessment of health and safety impacts for improvement 23 32
G4-PR3 Type of information about products and services required by the procedures 32 12
G4-PR5 Proceedings relating to customer satisfaction including surveys conducted to measure it 33
G4-PR6 Sale of banned or disputed products 32
G4-PR8 Number of substantiated complaints regarding breaches of privacy 32 16
2016 Sustainability Report46
Your Assessment
You are kindly requested to take a few minutes of your time to give us your assessment and any suggestions to enable us to improve future editions of our Sustainability Report
Click here to send us your feedback
To keep up to date with our business
Spazio CEDIT - interior (Milan)
wwwflorimiten
Florim Ceramiche
Florim4Architects
Florim_ceramiche
Florim Ceramiche spa
Florim Ceramiche
Florim Ceramiche
For any further information please feel free to contact our communications department comunicazioneflorimit
2016 Sustainability Report 47
Premio Lucchese - Florim Gallery (Fiorano Modenese - Modena Italy)
Intrapresaelig Guggenheim Collection - Massimo Bottura in Florim Gallery (Fiorano Modenese - Modena Italy)
Panathlon Christmas Gala - Florim Gallery (Fiorano Modenese - Modena Italy)
2016 Sustainability Report48
White Christmas Party - Florim Gallery (Fiorano Modenese - Modena Italy)
Cersaie - Mario Biondi in Florim Gallery (Fiorano Modenese - Modena Italy)
Dal buio alla luce - Social event at Florim Gallery (Fiorano Modenese - Modena Italy)
2016 Sustainability Report 49
Florim Gallery entrance (Fiorano Modenese - MO)
2016 Sustainability Report52
Florim Ceramiche spaVia Canaletto 24 - 41042 Fiorano Modenese (Modena Italy) - Tel +39 0536 840111 - wwwflorimit
2016 Sustainability Report 41
Florim USA ndash (Clarksville Tennessee)
For employees wishing to continue their education Florim USA offers assistance through the Educational Assistance Program It provides aid with the cost of education and textbooks and is available for any employee wishing to study for a technical qualification a diploma or a degreeThe plant staff training and education plan also includes various training schemes at Florim Italy where employees are instructed in the use of new equipment before it is installed at the American plantThroughout 2016 Florim USA will continue to provide a free e-learning course on its website for architects engineers and contractors (AEC) to improve their knowledge of sustainable porcelain stoneware tiles
Employee welfare activities
Florim USA employee picnic - In 2016 the company once again held its annual picnic for employees offering them a wide variety of foods games activities and live shows in an event which provided an unforgettable days enjoyment Within the event participants received prizes in the form of vouchers and gifts
Employee anniversary dinner - 2016 again saw the usual dinner to honour Florim USA employees with 5 10 15 20 or more years of service A special evening event was held in the presence of the Chairman and the other managers to celebrate the loyalty and hard work these employees have contributed during their careers with the firm
2016 Sustainability Report42
Local Community
During 2016 Florim USA continued to provide its support to a number of projects in its local areaSome of the main projects include
Scholarships - As part of its work to support the local community Florim has an established scheme which awards scholarships to deserving students at the Austin Peay State University in memory of Florim Group founder Giovanni Lucchese In December 2016 a delegation of Florim representatives attended a scholarship presentation lunch at the Austin Peay State University hosted by the President of the University
Montgomery County Green Certification Program - Florim USA staff actively participate in the Montgomery County Green Certification Program which aims to help companies learn and implement best practices with regard to safeguarding the environment and environmental resources
Donations - In 2016 the company again made a large number of donationsbull book collection for the Austin Peay State University Employees made a generous donation of used books in good condition for children and young people of the APSU in the hope of further promoting the education of future generationsbull to Community Cares the national organization that promotes the acceptance and social inclusion of individuals with Downs Syndromebull to the Aspire Clarksville Foundation a 501(c)(3) charitable foundation whose mission is to continuously improve the economy and the livability (quality of life) of the community by attracting significant capital investment and expansion by businesses and corporations thereby creating better opportunities and higher paying jobs for residentsbull to the Alzheimerrsquos Association a non-profit voluntary organization dedicated to the care and support of Alzheimers Disease sufferers and research into the condition Its aim is to eliminate the disease through the advancement of research to provide and enhance care and support for all affected and to reduce the risk of dementia through the promotion of brain health
Other activities - Every year Florim USA participates in the United Way Drive initiative to support local non-profit organizations which provide economic assistance and psychological support to persons in difficulty
Florim USA provides regular support to the Salvation Army by collecting canned foods for persons in needIn 2016 the company again organised a canned food collection for Manna Cafeacute in Clarksville TN Manna Cafeacute is a local non-profit organization based in Middle Tennessee with the primary mission of meeting peoples fundamental need for food before encouraging them to permanently change their lives for the better More than 15 of the population in Montgomery County are affected by food insecurity (about 28000 people) The percentage of children affected is about 215 a third of whom are excluded by income from federal programs such as free school mealsFinally donations were made tobull American Lung Association the leading organization working to save lives by improving lung health and preventing lung disease through research and educationbull Cheer for a Cure an organization that gives money directly to afflicting families who have a loved one suffering from cancer and need assistance to alleviate the added financial stressbull Habitat for Humanity Since 1992 Habitat for Humanity in Montgomery County Tennessee has worked with 93 low-income families with more than 210 children to revitalise various parts of Clarksville-Montgomery County by building new homes
2016 Sustainability Report 43
Quality SystemFlorim USA works under a Quality System certified to UNI EN ISO 9001 standards The following are some of the figures in brief
Objective Indicator 2012 2013 2014 2015 2016
Optimisation of control of the production process
Percentage of First Grade Product ()
932 917 940 949 9510
Quality rate () 883 857 893 906 909
Scrap rate () 56 65 48 45 45
KeyPercentage of first grade product ratio between square feet of first grade material and total square feet transferred to stockQuality rate ratio between square feet of first grade material transferred to stock and square feet pressedScrap rate ratio between square feet pressed and square feet of product actually transferred to stock
Other ActivitiesFlorim USA and trade shows
In 2016 Florim USA participated at a number of shows and events including Coverings the AIA Tennessee Convention Hardscape North America Total Solutions Plus Neocon International Pool - Spa and Patio Expo These events targeted at the various categories of industry professionals such as dealers and designers gave Florim USA the opportunity to present its new range of indoor and outdoor products
Design Center
In December 2015 Florim USA opened a design center showroom in Nashville (TN) in a strategic location close to the airport and the city center With a spacious area to host individual CEU presentations and workshops this design center has the potential to be a major resource for local architects In 2016 it was also awarded the ldquoOutstanding Boothrdquo booth prize at the 33rd edition of the Annual Home Decorating and Remodeling Show The location is the ideal place for sharing ideas finding inspiration and putting professionals and architects in touch with each other
Florim Nashville Design Center
2016 Sustainability Report44
GRI International Sustainability Indicators SDGsThe information below illustrates the correspondence between the Florim (Italian companies) 2016 Sustainability Report the GRI-G4 guidelines and the icons of the Sustainable Development Goals (SDGs) definitively adopted by the United NationsA description of the SDGs is available at wwwglobalcompactnetworkorg
GRI indicators
Description Page Reference to SDGs
1 Strategy and Analysis
G4-1 Statement from the most senior decision-maker of the organization 5
2 Organization profile
G4-3 Name of the organization 2
G4-4 Primary brands products andor services 9
G4-5 Location of the organizations headquarters 9
G4-6 Number and names of the countries where the organization operates 9
G4-7 Nature of ownership and legal form 14
G4-8 Markets served 9
G4-9 Scale of the organization 8 8
G4-10 Significant changes regarding size structure or ownership 8
G4-11 Employees covered by National Collective Bargaining Agreement 27
G4-12 Describe the supply chain 16
G4-13Significant changes regarding the organizationrsquos size structure ownership or its supply chain
Reporting process
launched
G4-14 Precautionary principle 22
G4-15 List of external commitments in which the company is involved 22 32 33
G4-16 Associations or interest groups in which the company is involvedwwwflorimit gt
about us gt partnerships
3 Identified material aspects and boundaries
G4-18 Process used to define the report content 6
G4-19 Material aspects 16
G4-20 Boundaries of each material aspect 6
G4-21 Boundaries of each material aspect outside the organizationPartial reporting
(pages 6 16)
G4-22 Explanation of the effect of any restatements of information provided in previous reports 6
G4-23Significant changes from previous reporting periods in the scope boundaries or measurement methods
6
3 Stakeholder engagement
G4-24 List of stakeholders 15
G4-25 Identification of stakeholders 15
G4-26 Stakeholder engagement 6 16
G4-27 Key topics and concerns that have been raised through stakeholder engagement 16
4 Boundary of the Report
G4-28 Reporting period 6
G4-29 Date of publication 2
G4-30 Reporting cycle 6
G4-31 Contacts and addresses for additional information 46
5 GRI Content Index
G4-32 Reporting option chosen 6 7
G4-33 External assurance of ReportThe Report is not
externally assured
2016 Sustainability Report 45
GRI indicators
Description Page Reference to SDGs
6 Governance
G4-34 Governance structure 14
7 Ethics and integrity
G4-56 Values principles standards and norms of behavior 13 16
Economic performance indicators
EC1 Direct economic value generated and distributed 19 25789
EC5 Wages 27 158
EC7 Development and impact of infrastructure investments and services supported 23 24 31 257911
Environmental performance indicators
G4-EN2 Percentage of materials used that are recycled input materials 17 22 23 812
G4-EN3 Energy consumption within the organization 24 781213
G4-EN6 Reduction of energy consumption 17 24 71213
G4-EN7 Reductions in energy requirements of products and servicesPartial reporting
(page 22)71213
G4-EN8 Total water withdrawal by source 17 23 6
G4-EN10 Percentage and total volume of water recycled and reused 17 21 23 612
G4-EN11 Biodiversity 23 615
G4-EN15 Total indirect greenhouse gas emissions by weight 25 3121315
G4-EN16 Total indirect greenhouse gas emissions by weight 25 3121315
G4-EN19 Reduction of greenhouse gas emissions 8 24 1315
G4-EN21 NOx SOx and other significant air emissions 25 31215
G4-EN22 Total water discharge by quality and destination 23 6
G4-EN23 Total weight of waste by type 17 22 3612
G4-EN27 Impact mitigation of environmental impacts of products and services 23 68121315
G4-EN29 Monetary value of significant fines 22 16
G4-EN30 Significant environmental impacts of transporting products and goodsmaterialsPartial reporting
(page 25)111213
Social performance indicators
G4-LA1 Total number and rates of new employee hires and employee turnoverPartial reporting
(pages 17 27)8
G4-LA6 Workplace injury ratesPartial reporting
(page 17)38
G4-LA9 Average hours of training per year per employee 28 48
G4-LA12Composition of governance bodies and breakdown of employees according to gender age group etc
27 58
G4-LA13 Ratio of basic salary and total remuneration of women to men 27 5810
Society
G4-SO1 Operations with local community engagement 12 31 16
G4-SO3 Operations assessed for risks related to corruptionPartial reporting
(page 13)
Product responsibility
G4-PR1 Assessment of health and safety impacts for improvement 23 32
G4-PR3 Type of information about products and services required by the procedures 32 12
G4-PR5 Proceedings relating to customer satisfaction including surveys conducted to measure it 33
G4-PR6 Sale of banned or disputed products 32
G4-PR8 Number of substantiated complaints regarding breaches of privacy 32 16
2016 Sustainability Report46
Your Assessment
You are kindly requested to take a few minutes of your time to give us your assessment and any suggestions to enable us to improve future editions of our Sustainability Report
Click here to send us your feedback
To keep up to date with our business
Spazio CEDIT - interior (Milan)
wwwflorimiten
Florim Ceramiche
Florim4Architects
Florim_ceramiche
Florim Ceramiche spa
Florim Ceramiche
Florim Ceramiche
For any further information please feel free to contact our communications department comunicazioneflorimit
2016 Sustainability Report 47
Premio Lucchese - Florim Gallery (Fiorano Modenese - Modena Italy)
Intrapresaelig Guggenheim Collection - Massimo Bottura in Florim Gallery (Fiorano Modenese - Modena Italy)
Panathlon Christmas Gala - Florim Gallery (Fiorano Modenese - Modena Italy)
2016 Sustainability Report48
White Christmas Party - Florim Gallery (Fiorano Modenese - Modena Italy)
Cersaie - Mario Biondi in Florim Gallery (Fiorano Modenese - Modena Italy)
Dal buio alla luce - Social event at Florim Gallery (Fiorano Modenese - Modena Italy)
2016 Sustainability Report 49
Florim Gallery entrance (Fiorano Modenese - MO)
2016 Sustainability Report52
Florim Ceramiche spaVia Canaletto 24 - 41042 Fiorano Modenese (Modena Italy) - Tel +39 0536 840111 - wwwflorimit
2016 Sustainability Report42
Local Community
During 2016 Florim USA continued to provide its support to a number of projects in its local areaSome of the main projects include
Scholarships - As part of its work to support the local community Florim has an established scheme which awards scholarships to deserving students at the Austin Peay State University in memory of Florim Group founder Giovanni Lucchese In December 2016 a delegation of Florim representatives attended a scholarship presentation lunch at the Austin Peay State University hosted by the President of the University
Montgomery County Green Certification Program - Florim USA staff actively participate in the Montgomery County Green Certification Program which aims to help companies learn and implement best practices with regard to safeguarding the environment and environmental resources
Donations - In 2016 the company again made a large number of donationsbull book collection for the Austin Peay State University Employees made a generous donation of used books in good condition for children and young people of the APSU in the hope of further promoting the education of future generationsbull to Community Cares the national organization that promotes the acceptance and social inclusion of individuals with Downs Syndromebull to the Aspire Clarksville Foundation a 501(c)(3) charitable foundation whose mission is to continuously improve the economy and the livability (quality of life) of the community by attracting significant capital investment and expansion by businesses and corporations thereby creating better opportunities and higher paying jobs for residentsbull to the Alzheimerrsquos Association a non-profit voluntary organization dedicated to the care and support of Alzheimers Disease sufferers and research into the condition Its aim is to eliminate the disease through the advancement of research to provide and enhance care and support for all affected and to reduce the risk of dementia through the promotion of brain health
Other activities - Every year Florim USA participates in the United Way Drive initiative to support local non-profit organizations which provide economic assistance and psychological support to persons in difficulty
Florim USA provides regular support to the Salvation Army by collecting canned foods for persons in needIn 2016 the company again organised a canned food collection for Manna Cafeacute in Clarksville TN Manna Cafeacute is a local non-profit organization based in Middle Tennessee with the primary mission of meeting peoples fundamental need for food before encouraging them to permanently change their lives for the better More than 15 of the population in Montgomery County are affected by food insecurity (about 28000 people) The percentage of children affected is about 215 a third of whom are excluded by income from federal programs such as free school mealsFinally donations were made tobull American Lung Association the leading organization working to save lives by improving lung health and preventing lung disease through research and educationbull Cheer for a Cure an organization that gives money directly to afflicting families who have a loved one suffering from cancer and need assistance to alleviate the added financial stressbull Habitat for Humanity Since 1992 Habitat for Humanity in Montgomery County Tennessee has worked with 93 low-income families with more than 210 children to revitalise various parts of Clarksville-Montgomery County by building new homes
2016 Sustainability Report 43
Quality SystemFlorim USA works under a Quality System certified to UNI EN ISO 9001 standards The following are some of the figures in brief
Objective Indicator 2012 2013 2014 2015 2016
Optimisation of control of the production process
Percentage of First Grade Product ()
932 917 940 949 9510
Quality rate () 883 857 893 906 909
Scrap rate () 56 65 48 45 45
KeyPercentage of first grade product ratio between square feet of first grade material and total square feet transferred to stockQuality rate ratio between square feet of first grade material transferred to stock and square feet pressedScrap rate ratio between square feet pressed and square feet of product actually transferred to stock
Other ActivitiesFlorim USA and trade shows
In 2016 Florim USA participated at a number of shows and events including Coverings the AIA Tennessee Convention Hardscape North America Total Solutions Plus Neocon International Pool - Spa and Patio Expo These events targeted at the various categories of industry professionals such as dealers and designers gave Florim USA the opportunity to present its new range of indoor and outdoor products
Design Center
In December 2015 Florim USA opened a design center showroom in Nashville (TN) in a strategic location close to the airport and the city center With a spacious area to host individual CEU presentations and workshops this design center has the potential to be a major resource for local architects In 2016 it was also awarded the ldquoOutstanding Boothrdquo booth prize at the 33rd edition of the Annual Home Decorating and Remodeling Show The location is the ideal place for sharing ideas finding inspiration and putting professionals and architects in touch with each other
Florim Nashville Design Center
2016 Sustainability Report44
GRI International Sustainability Indicators SDGsThe information below illustrates the correspondence between the Florim (Italian companies) 2016 Sustainability Report the GRI-G4 guidelines and the icons of the Sustainable Development Goals (SDGs) definitively adopted by the United NationsA description of the SDGs is available at wwwglobalcompactnetworkorg
GRI indicators
Description Page Reference to SDGs
1 Strategy and Analysis
G4-1 Statement from the most senior decision-maker of the organization 5
2 Organization profile
G4-3 Name of the organization 2
G4-4 Primary brands products andor services 9
G4-5 Location of the organizations headquarters 9
G4-6 Number and names of the countries where the organization operates 9
G4-7 Nature of ownership and legal form 14
G4-8 Markets served 9
G4-9 Scale of the organization 8 8
G4-10 Significant changes regarding size structure or ownership 8
G4-11 Employees covered by National Collective Bargaining Agreement 27
G4-12 Describe the supply chain 16
G4-13Significant changes regarding the organizationrsquos size structure ownership or its supply chain
Reporting process
launched
G4-14 Precautionary principle 22
G4-15 List of external commitments in which the company is involved 22 32 33
G4-16 Associations or interest groups in which the company is involvedwwwflorimit gt
about us gt partnerships
3 Identified material aspects and boundaries
G4-18 Process used to define the report content 6
G4-19 Material aspects 16
G4-20 Boundaries of each material aspect 6
G4-21 Boundaries of each material aspect outside the organizationPartial reporting
(pages 6 16)
G4-22 Explanation of the effect of any restatements of information provided in previous reports 6
G4-23Significant changes from previous reporting periods in the scope boundaries or measurement methods
6
3 Stakeholder engagement
G4-24 List of stakeholders 15
G4-25 Identification of stakeholders 15
G4-26 Stakeholder engagement 6 16
G4-27 Key topics and concerns that have been raised through stakeholder engagement 16
4 Boundary of the Report
G4-28 Reporting period 6
G4-29 Date of publication 2
G4-30 Reporting cycle 6
G4-31 Contacts and addresses for additional information 46
5 GRI Content Index
G4-32 Reporting option chosen 6 7
G4-33 External assurance of ReportThe Report is not
externally assured
2016 Sustainability Report 45
GRI indicators
Description Page Reference to SDGs
6 Governance
G4-34 Governance structure 14
7 Ethics and integrity
G4-56 Values principles standards and norms of behavior 13 16
Economic performance indicators
EC1 Direct economic value generated and distributed 19 25789
EC5 Wages 27 158
EC7 Development and impact of infrastructure investments and services supported 23 24 31 257911
Environmental performance indicators
G4-EN2 Percentage of materials used that are recycled input materials 17 22 23 812
G4-EN3 Energy consumption within the organization 24 781213
G4-EN6 Reduction of energy consumption 17 24 71213
G4-EN7 Reductions in energy requirements of products and servicesPartial reporting
(page 22)71213
G4-EN8 Total water withdrawal by source 17 23 6
G4-EN10 Percentage and total volume of water recycled and reused 17 21 23 612
G4-EN11 Biodiversity 23 615
G4-EN15 Total indirect greenhouse gas emissions by weight 25 3121315
G4-EN16 Total indirect greenhouse gas emissions by weight 25 3121315
G4-EN19 Reduction of greenhouse gas emissions 8 24 1315
G4-EN21 NOx SOx and other significant air emissions 25 31215
G4-EN22 Total water discharge by quality and destination 23 6
G4-EN23 Total weight of waste by type 17 22 3612
G4-EN27 Impact mitigation of environmental impacts of products and services 23 68121315
G4-EN29 Monetary value of significant fines 22 16
G4-EN30 Significant environmental impacts of transporting products and goodsmaterialsPartial reporting
(page 25)111213
Social performance indicators
G4-LA1 Total number and rates of new employee hires and employee turnoverPartial reporting
(pages 17 27)8
G4-LA6 Workplace injury ratesPartial reporting
(page 17)38
G4-LA9 Average hours of training per year per employee 28 48
G4-LA12Composition of governance bodies and breakdown of employees according to gender age group etc
27 58
G4-LA13 Ratio of basic salary and total remuneration of women to men 27 5810
Society
G4-SO1 Operations with local community engagement 12 31 16
G4-SO3 Operations assessed for risks related to corruptionPartial reporting
(page 13)
Product responsibility
G4-PR1 Assessment of health and safety impacts for improvement 23 32
G4-PR3 Type of information about products and services required by the procedures 32 12
G4-PR5 Proceedings relating to customer satisfaction including surveys conducted to measure it 33
G4-PR6 Sale of banned or disputed products 32
G4-PR8 Number of substantiated complaints regarding breaches of privacy 32 16
2016 Sustainability Report46
Your Assessment
You are kindly requested to take a few minutes of your time to give us your assessment and any suggestions to enable us to improve future editions of our Sustainability Report
Click here to send us your feedback
To keep up to date with our business
Spazio CEDIT - interior (Milan)
wwwflorimiten
Florim Ceramiche
Florim4Architects
Florim_ceramiche
Florim Ceramiche spa
Florim Ceramiche
Florim Ceramiche
For any further information please feel free to contact our communications department comunicazioneflorimit
2016 Sustainability Report 47
Premio Lucchese - Florim Gallery (Fiorano Modenese - Modena Italy)
Intrapresaelig Guggenheim Collection - Massimo Bottura in Florim Gallery (Fiorano Modenese - Modena Italy)
Panathlon Christmas Gala - Florim Gallery (Fiorano Modenese - Modena Italy)
2016 Sustainability Report48
White Christmas Party - Florim Gallery (Fiorano Modenese - Modena Italy)
Cersaie - Mario Biondi in Florim Gallery (Fiorano Modenese - Modena Italy)
Dal buio alla luce - Social event at Florim Gallery (Fiorano Modenese - Modena Italy)
2016 Sustainability Report 49
Florim Gallery entrance (Fiorano Modenese - MO)
2016 Sustainability Report52
Florim Ceramiche spaVia Canaletto 24 - 41042 Fiorano Modenese (Modena Italy) - Tel +39 0536 840111 - wwwflorimit
2016 Sustainability Report 43
Quality SystemFlorim USA works under a Quality System certified to UNI EN ISO 9001 standards The following are some of the figures in brief
Objective Indicator 2012 2013 2014 2015 2016
Optimisation of control of the production process
Percentage of First Grade Product ()
932 917 940 949 9510
Quality rate () 883 857 893 906 909
Scrap rate () 56 65 48 45 45
KeyPercentage of first grade product ratio between square feet of first grade material and total square feet transferred to stockQuality rate ratio between square feet of first grade material transferred to stock and square feet pressedScrap rate ratio between square feet pressed and square feet of product actually transferred to stock
Other ActivitiesFlorim USA and trade shows
In 2016 Florim USA participated at a number of shows and events including Coverings the AIA Tennessee Convention Hardscape North America Total Solutions Plus Neocon International Pool - Spa and Patio Expo These events targeted at the various categories of industry professionals such as dealers and designers gave Florim USA the opportunity to present its new range of indoor and outdoor products
Design Center
In December 2015 Florim USA opened a design center showroom in Nashville (TN) in a strategic location close to the airport and the city center With a spacious area to host individual CEU presentations and workshops this design center has the potential to be a major resource for local architects In 2016 it was also awarded the ldquoOutstanding Boothrdquo booth prize at the 33rd edition of the Annual Home Decorating and Remodeling Show The location is the ideal place for sharing ideas finding inspiration and putting professionals and architects in touch with each other
Florim Nashville Design Center
2016 Sustainability Report44
GRI International Sustainability Indicators SDGsThe information below illustrates the correspondence between the Florim (Italian companies) 2016 Sustainability Report the GRI-G4 guidelines and the icons of the Sustainable Development Goals (SDGs) definitively adopted by the United NationsA description of the SDGs is available at wwwglobalcompactnetworkorg
GRI indicators
Description Page Reference to SDGs
1 Strategy and Analysis
G4-1 Statement from the most senior decision-maker of the organization 5
2 Organization profile
G4-3 Name of the organization 2
G4-4 Primary brands products andor services 9
G4-5 Location of the organizations headquarters 9
G4-6 Number and names of the countries where the organization operates 9
G4-7 Nature of ownership and legal form 14
G4-8 Markets served 9
G4-9 Scale of the organization 8 8
G4-10 Significant changes regarding size structure or ownership 8
G4-11 Employees covered by National Collective Bargaining Agreement 27
G4-12 Describe the supply chain 16
G4-13Significant changes regarding the organizationrsquos size structure ownership or its supply chain
Reporting process
launched
G4-14 Precautionary principle 22
G4-15 List of external commitments in which the company is involved 22 32 33
G4-16 Associations or interest groups in which the company is involvedwwwflorimit gt
about us gt partnerships
3 Identified material aspects and boundaries
G4-18 Process used to define the report content 6
G4-19 Material aspects 16
G4-20 Boundaries of each material aspect 6
G4-21 Boundaries of each material aspect outside the organizationPartial reporting
(pages 6 16)
G4-22 Explanation of the effect of any restatements of information provided in previous reports 6
G4-23Significant changes from previous reporting periods in the scope boundaries or measurement methods
6
3 Stakeholder engagement
G4-24 List of stakeholders 15
G4-25 Identification of stakeholders 15
G4-26 Stakeholder engagement 6 16
G4-27 Key topics and concerns that have been raised through stakeholder engagement 16
4 Boundary of the Report
G4-28 Reporting period 6
G4-29 Date of publication 2
G4-30 Reporting cycle 6
G4-31 Contacts and addresses for additional information 46
5 GRI Content Index
G4-32 Reporting option chosen 6 7
G4-33 External assurance of ReportThe Report is not
externally assured
2016 Sustainability Report 45
GRI indicators
Description Page Reference to SDGs
6 Governance
G4-34 Governance structure 14
7 Ethics and integrity
G4-56 Values principles standards and norms of behavior 13 16
Economic performance indicators
EC1 Direct economic value generated and distributed 19 25789
EC5 Wages 27 158
EC7 Development and impact of infrastructure investments and services supported 23 24 31 257911
Environmental performance indicators
G4-EN2 Percentage of materials used that are recycled input materials 17 22 23 812
G4-EN3 Energy consumption within the organization 24 781213
G4-EN6 Reduction of energy consumption 17 24 71213
G4-EN7 Reductions in energy requirements of products and servicesPartial reporting
(page 22)71213
G4-EN8 Total water withdrawal by source 17 23 6
G4-EN10 Percentage and total volume of water recycled and reused 17 21 23 612
G4-EN11 Biodiversity 23 615
G4-EN15 Total indirect greenhouse gas emissions by weight 25 3121315
G4-EN16 Total indirect greenhouse gas emissions by weight 25 3121315
G4-EN19 Reduction of greenhouse gas emissions 8 24 1315
G4-EN21 NOx SOx and other significant air emissions 25 31215
G4-EN22 Total water discharge by quality and destination 23 6
G4-EN23 Total weight of waste by type 17 22 3612
G4-EN27 Impact mitigation of environmental impacts of products and services 23 68121315
G4-EN29 Monetary value of significant fines 22 16
G4-EN30 Significant environmental impacts of transporting products and goodsmaterialsPartial reporting
(page 25)111213
Social performance indicators
G4-LA1 Total number and rates of new employee hires and employee turnoverPartial reporting
(pages 17 27)8
G4-LA6 Workplace injury ratesPartial reporting
(page 17)38
G4-LA9 Average hours of training per year per employee 28 48
G4-LA12Composition of governance bodies and breakdown of employees according to gender age group etc
27 58
G4-LA13 Ratio of basic salary and total remuneration of women to men 27 5810
Society
G4-SO1 Operations with local community engagement 12 31 16
G4-SO3 Operations assessed for risks related to corruptionPartial reporting
(page 13)
Product responsibility
G4-PR1 Assessment of health and safety impacts for improvement 23 32
G4-PR3 Type of information about products and services required by the procedures 32 12
G4-PR5 Proceedings relating to customer satisfaction including surveys conducted to measure it 33
G4-PR6 Sale of banned or disputed products 32
G4-PR8 Number of substantiated complaints regarding breaches of privacy 32 16
2016 Sustainability Report46
Your Assessment
You are kindly requested to take a few minutes of your time to give us your assessment and any suggestions to enable us to improve future editions of our Sustainability Report
Click here to send us your feedback
To keep up to date with our business
Spazio CEDIT - interior (Milan)
wwwflorimiten
Florim Ceramiche
Florim4Architects
Florim_ceramiche
Florim Ceramiche spa
Florim Ceramiche
Florim Ceramiche
For any further information please feel free to contact our communications department comunicazioneflorimit
2016 Sustainability Report 47
Premio Lucchese - Florim Gallery (Fiorano Modenese - Modena Italy)
Intrapresaelig Guggenheim Collection - Massimo Bottura in Florim Gallery (Fiorano Modenese - Modena Italy)
Panathlon Christmas Gala - Florim Gallery (Fiorano Modenese - Modena Italy)
2016 Sustainability Report48
White Christmas Party - Florim Gallery (Fiorano Modenese - Modena Italy)
Cersaie - Mario Biondi in Florim Gallery (Fiorano Modenese - Modena Italy)
Dal buio alla luce - Social event at Florim Gallery (Fiorano Modenese - Modena Italy)
2016 Sustainability Report 49
Florim Gallery entrance (Fiorano Modenese - MO)
2016 Sustainability Report52
Florim Ceramiche spaVia Canaletto 24 - 41042 Fiorano Modenese (Modena Italy) - Tel +39 0536 840111 - wwwflorimit
2016 Sustainability Report44
GRI International Sustainability Indicators SDGsThe information below illustrates the correspondence between the Florim (Italian companies) 2016 Sustainability Report the GRI-G4 guidelines and the icons of the Sustainable Development Goals (SDGs) definitively adopted by the United NationsA description of the SDGs is available at wwwglobalcompactnetworkorg
GRI indicators
Description Page Reference to SDGs
1 Strategy and Analysis
G4-1 Statement from the most senior decision-maker of the organization 5
2 Organization profile
G4-3 Name of the organization 2
G4-4 Primary brands products andor services 9
G4-5 Location of the organizations headquarters 9
G4-6 Number and names of the countries where the organization operates 9
G4-7 Nature of ownership and legal form 14
G4-8 Markets served 9
G4-9 Scale of the organization 8 8
G4-10 Significant changes regarding size structure or ownership 8
G4-11 Employees covered by National Collective Bargaining Agreement 27
G4-12 Describe the supply chain 16
G4-13Significant changes regarding the organizationrsquos size structure ownership or its supply chain
Reporting process
launched
G4-14 Precautionary principle 22
G4-15 List of external commitments in which the company is involved 22 32 33
G4-16 Associations or interest groups in which the company is involvedwwwflorimit gt
about us gt partnerships
3 Identified material aspects and boundaries
G4-18 Process used to define the report content 6
G4-19 Material aspects 16
G4-20 Boundaries of each material aspect 6
G4-21 Boundaries of each material aspect outside the organizationPartial reporting
(pages 6 16)
G4-22 Explanation of the effect of any restatements of information provided in previous reports 6
G4-23Significant changes from previous reporting periods in the scope boundaries or measurement methods
6
3 Stakeholder engagement
G4-24 List of stakeholders 15
G4-25 Identification of stakeholders 15
G4-26 Stakeholder engagement 6 16
G4-27 Key topics and concerns that have been raised through stakeholder engagement 16
4 Boundary of the Report
G4-28 Reporting period 6
G4-29 Date of publication 2
G4-30 Reporting cycle 6
G4-31 Contacts and addresses for additional information 46
5 GRI Content Index
G4-32 Reporting option chosen 6 7
G4-33 External assurance of ReportThe Report is not
externally assured
2016 Sustainability Report 45
GRI indicators
Description Page Reference to SDGs
6 Governance
G4-34 Governance structure 14
7 Ethics and integrity
G4-56 Values principles standards and norms of behavior 13 16
Economic performance indicators
EC1 Direct economic value generated and distributed 19 25789
EC5 Wages 27 158
EC7 Development and impact of infrastructure investments and services supported 23 24 31 257911
Environmental performance indicators
G4-EN2 Percentage of materials used that are recycled input materials 17 22 23 812
G4-EN3 Energy consumption within the organization 24 781213
G4-EN6 Reduction of energy consumption 17 24 71213
G4-EN7 Reductions in energy requirements of products and servicesPartial reporting
(page 22)71213
G4-EN8 Total water withdrawal by source 17 23 6
G4-EN10 Percentage and total volume of water recycled and reused 17 21 23 612
G4-EN11 Biodiversity 23 615
G4-EN15 Total indirect greenhouse gas emissions by weight 25 3121315
G4-EN16 Total indirect greenhouse gas emissions by weight 25 3121315
G4-EN19 Reduction of greenhouse gas emissions 8 24 1315
G4-EN21 NOx SOx and other significant air emissions 25 31215
G4-EN22 Total water discharge by quality and destination 23 6
G4-EN23 Total weight of waste by type 17 22 3612
G4-EN27 Impact mitigation of environmental impacts of products and services 23 68121315
G4-EN29 Monetary value of significant fines 22 16
G4-EN30 Significant environmental impacts of transporting products and goodsmaterialsPartial reporting
(page 25)111213
Social performance indicators
G4-LA1 Total number and rates of new employee hires and employee turnoverPartial reporting
(pages 17 27)8
G4-LA6 Workplace injury ratesPartial reporting
(page 17)38
G4-LA9 Average hours of training per year per employee 28 48
G4-LA12Composition of governance bodies and breakdown of employees according to gender age group etc
27 58
G4-LA13 Ratio of basic salary and total remuneration of women to men 27 5810
Society
G4-SO1 Operations with local community engagement 12 31 16
G4-SO3 Operations assessed for risks related to corruptionPartial reporting
(page 13)
Product responsibility
G4-PR1 Assessment of health and safety impacts for improvement 23 32
G4-PR3 Type of information about products and services required by the procedures 32 12
G4-PR5 Proceedings relating to customer satisfaction including surveys conducted to measure it 33
G4-PR6 Sale of banned or disputed products 32
G4-PR8 Number of substantiated complaints regarding breaches of privacy 32 16
2016 Sustainability Report46
Your Assessment
You are kindly requested to take a few minutes of your time to give us your assessment and any suggestions to enable us to improve future editions of our Sustainability Report
Click here to send us your feedback
To keep up to date with our business
Spazio CEDIT - interior (Milan)
wwwflorimiten
Florim Ceramiche
Florim4Architects
Florim_ceramiche
Florim Ceramiche spa
Florim Ceramiche
Florim Ceramiche
For any further information please feel free to contact our communications department comunicazioneflorimit
2016 Sustainability Report 47
Premio Lucchese - Florim Gallery (Fiorano Modenese - Modena Italy)
Intrapresaelig Guggenheim Collection - Massimo Bottura in Florim Gallery (Fiorano Modenese - Modena Italy)
Panathlon Christmas Gala - Florim Gallery (Fiorano Modenese - Modena Italy)
2016 Sustainability Report48
White Christmas Party - Florim Gallery (Fiorano Modenese - Modena Italy)
Cersaie - Mario Biondi in Florim Gallery (Fiorano Modenese - Modena Italy)
Dal buio alla luce - Social event at Florim Gallery (Fiorano Modenese - Modena Italy)
2016 Sustainability Report 49
Florim Gallery entrance (Fiorano Modenese - MO)
2016 Sustainability Report52
Florim Ceramiche spaVia Canaletto 24 - 41042 Fiorano Modenese (Modena Italy) - Tel +39 0536 840111 - wwwflorimit
2016 Sustainability Report 45
GRI indicators
Description Page Reference to SDGs
6 Governance
G4-34 Governance structure 14
7 Ethics and integrity
G4-56 Values principles standards and norms of behavior 13 16
Economic performance indicators
EC1 Direct economic value generated and distributed 19 25789
EC5 Wages 27 158
EC7 Development and impact of infrastructure investments and services supported 23 24 31 257911
Environmental performance indicators
G4-EN2 Percentage of materials used that are recycled input materials 17 22 23 812
G4-EN3 Energy consumption within the organization 24 781213
G4-EN6 Reduction of energy consumption 17 24 71213
G4-EN7 Reductions in energy requirements of products and servicesPartial reporting
(page 22)71213
G4-EN8 Total water withdrawal by source 17 23 6
G4-EN10 Percentage and total volume of water recycled and reused 17 21 23 612
G4-EN11 Biodiversity 23 615
G4-EN15 Total indirect greenhouse gas emissions by weight 25 3121315
G4-EN16 Total indirect greenhouse gas emissions by weight 25 3121315
G4-EN19 Reduction of greenhouse gas emissions 8 24 1315
G4-EN21 NOx SOx and other significant air emissions 25 31215
G4-EN22 Total water discharge by quality and destination 23 6
G4-EN23 Total weight of waste by type 17 22 3612
G4-EN27 Impact mitigation of environmental impacts of products and services 23 68121315
G4-EN29 Monetary value of significant fines 22 16
G4-EN30 Significant environmental impacts of transporting products and goodsmaterialsPartial reporting
(page 25)111213
Social performance indicators
G4-LA1 Total number and rates of new employee hires and employee turnoverPartial reporting
(pages 17 27)8
G4-LA6 Workplace injury ratesPartial reporting
(page 17)38
G4-LA9 Average hours of training per year per employee 28 48
G4-LA12Composition of governance bodies and breakdown of employees according to gender age group etc
27 58
G4-LA13 Ratio of basic salary and total remuneration of women to men 27 5810
Society
G4-SO1 Operations with local community engagement 12 31 16
G4-SO3 Operations assessed for risks related to corruptionPartial reporting
(page 13)
Product responsibility
G4-PR1 Assessment of health and safety impacts for improvement 23 32
G4-PR3 Type of information about products and services required by the procedures 32 12
G4-PR5 Proceedings relating to customer satisfaction including surveys conducted to measure it 33
G4-PR6 Sale of banned or disputed products 32
G4-PR8 Number of substantiated complaints regarding breaches of privacy 32 16
2016 Sustainability Report46
Your Assessment
You are kindly requested to take a few minutes of your time to give us your assessment and any suggestions to enable us to improve future editions of our Sustainability Report
Click here to send us your feedback
To keep up to date with our business
Spazio CEDIT - interior (Milan)
wwwflorimiten
Florim Ceramiche
Florim4Architects
Florim_ceramiche
Florim Ceramiche spa
Florim Ceramiche
Florim Ceramiche
For any further information please feel free to contact our communications department comunicazioneflorimit
2016 Sustainability Report 47
Premio Lucchese - Florim Gallery (Fiorano Modenese - Modena Italy)
Intrapresaelig Guggenheim Collection - Massimo Bottura in Florim Gallery (Fiorano Modenese - Modena Italy)
Panathlon Christmas Gala - Florim Gallery (Fiorano Modenese - Modena Italy)
2016 Sustainability Report48
White Christmas Party - Florim Gallery (Fiorano Modenese - Modena Italy)
Cersaie - Mario Biondi in Florim Gallery (Fiorano Modenese - Modena Italy)
Dal buio alla luce - Social event at Florim Gallery (Fiorano Modenese - Modena Italy)
2016 Sustainability Report 49
Florim Gallery entrance (Fiorano Modenese - MO)
2016 Sustainability Report52
Florim Ceramiche spaVia Canaletto 24 - 41042 Fiorano Modenese (Modena Italy) - Tel +39 0536 840111 - wwwflorimit
2016 Sustainability Report46
Your Assessment
You are kindly requested to take a few minutes of your time to give us your assessment and any suggestions to enable us to improve future editions of our Sustainability Report
Click here to send us your feedback
To keep up to date with our business
Spazio CEDIT - interior (Milan)
wwwflorimiten
Florim Ceramiche
Florim4Architects
Florim_ceramiche
Florim Ceramiche spa
Florim Ceramiche
Florim Ceramiche
For any further information please feel free to contact our communications department comunicazioneflorimit
2016 Sustainability Report 47
Premio Lucchese - Florim Gallery (Fiorano Modenese - Modena Italy)
Intrapresaelig Guggenheim Collection - Massimo Bottura in Florim Gallery (Fiorano Modenese - Modena Italy)
Panathlon Christmas Gala - Florim Gallery (Fiorano Modenese - Modena Italy)
2016 Sustainability Report48
White Christmas Party - Florim Gallery (Fiorano Modenese - Modena Italy)
Cersaie - Mario Biondi in Florim Gallery (Fiorano Modenese - Modena Italy)
Dal buio alla luce - Social event at Florim Gallery (Fiorano Modenese - Modena Italy)
2016 Sustainability Report 49
Florim Gallery entrance (Fiorano Modenese - MO)
2016 Sustainability Report52
Florim Ceramiche spaVia Canaletto 24 - 41042 Fiorano Modenese (Modena Italy) - Tel +39 0536 840111 - wwwflorimit
2016 Sustainability Report 47
Premio Lucchese - Florim Gallery (Fiorano Modenese - Modena Italy)
Intrapresaelig Guggenheim Collection - Massimo Bottura in Florim Gallery (Fiorano Modenese - Modena Italy)
Panathlon Christmas Gala - Florim Gallery (Fiorano Modenese - Modena Italy)
2016 Sustainability Report48
White Christmas Party - Florim Gallery (Fiorano Modenese - Modena Italy)
Cersaie - Mario Biondi in Florim Gallery (Fiorano Modenese - Modena Italy)
Dal buio alla luce - Social event at Florim Gallery (Fiorano Modenese - Modena Italy)
2016 Sustainability Report 49
Florim Gallery entrance (Fiorano Modenese - MO)
2016 Sustainability Report52
Florim Ceramiche spaVia Canaletto 24 - 41042 Fiorano Modenese (Modena Italy) - Tel +39 0536 840111 - wwwflorimit
2016 Sustainability Report48
White Christmas Party - Florim Gallery (Fiorano Modenese - Modena Italy)
Cersaie - Mario Biondi in Florim Gallery (Fiorano Modenese - Modena Italy)
Dal buio alla luce - Social event at Florim Gallery (Fiorano Modenese - Modena Italy)
2016 Sustainability Report 49
Florim Gallery entrance (Fiorano Modenese - MO)
2016 Sustainability Report52
Florim Ceramiche spaVia Canaletto 24 - 41042 Fiorano Modenese (Modena Italy) - Tel +39 0536 840111 - wwwflorimit
2016 Sustainability Report 49
Florim Gallery entrance (Fiorano Modenese - MO)
2016 Sustainability Report52
Florim Ceramiche spaVia Canaletto 24 - 41042 Fiorano Modenese (Modena Italy) - Tel +39 0536 840111 - wwwflorimit
2016 Sustainability Report52
Florim Ceramiche spaVia Canaletto 24 - 41042 Fiorano Modenese (Modena Italy) - Tel +39 0536 840111 - wwwflorimit