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D’Ieteren I Financial and directors’ report 2018 I 123

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Declaration by Responsible Persons

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2018 Full-Year Results

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Consolidated Financial Statements 2018

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Summarised Statutory Financial Statements 2018

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Corporate Governance Statement

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Disclosure of non-financial information

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Disclosureofnon-financial information1.TheD’IeterenGroupAstheparentcompany,thelargestimpactofD’Ieterenoccursasaresultofwhereitchoosestoinvest.TheD’IeterenGroupcurrentlyhasthreeactivitiesarticulatedaroundstrongbrands:-D’IeterenAuto(100%owned),Belron(54.10%owned)andMoleskine(100%owned)andhasrecentlywelcomedD’IeterenImmoasanewentity(100%owned).D’Ieterenseeksgrowthandvaluecreationbypursuingalongtermstrategyforitsbusinessesandactivelyencouragingandsupportingthemtostrengthentheirpositionsintheirspecificindustriesorregions.Asawhole,itaimstocreatevalueforallitsstakehol-ders.

Thisyear,D’Ieterenhastakenfurtherstepstoenhanceitsnon-financialdisclosure.Firstly,thecommunicationsprofessionalsandsustainabilityexpertsofD’Ieteren,D’IeterenAuto,Belron,MoleskineandD’IeterenImmogatheredinBrusselsinOctober2018todiscusshowtoaligntheirsustainabilityrepor-tingmethodandsharebestpractices.Somecommonprioritieswerepinpointedinthiscontext,includingCustomerWelfareandSatisfaction,EmployeeWell-beingandDevelopment,InnovationforSociety,RespectfortheEnvironmentandCommunityEngagement.

Thesecommonthemesarosefromthematerialityanalysisthatwascarriedoutforeachactivity.TheD’IeterenGroupanditsactivitiesreviewedtheresultsofthematerialityanalysesmadein2018withtheaimofachievingmorealignementwiththestandardsoftheSustainabilityAccountingStandardsBoard(SASB).TheSASBhasdevelopedasetof77standardsthatidentifyarangeofmaterialsustainabilitythemesforspecificindustries.ByassessingtheSASBstandards,theselectionofmaterialthemescanbemademorerelevanttotheindustriesinwhichD’Ieterenoperates.Asaresult,thelistofmaterialthemesforeachactivityhasbeentweakedcomparedtolastyear.ThesethemesrelatetosignificantenvironmentalandsocialimpactsthatD’Ieteren’sactivitieshaveonstakeholdersandsocietyatlarge.ExternalsustainabilityexpertsalsosupportedD’Ieterenanditsactivitiesinthisprocessandhelpedtoensureaconsistentandaccuratematerialityassessment.

Moreover,D’IeterenhasaligneditsmaterialthemestotheUNSustainableDevelopmentGoals(SDGs).This2030AgendaforSustainableDevelopment,whichconsistsof17Goalscovering169targets,wasadoptedbyallUnitedNationsMemberStatesin2015.Foreachoftheidentifiedmaterialthemes,D’IeterenidentifiedtherelatedSDGandSDGtargetandlookedatthewayitsactivitieswerecontributingtothisagenda.

D’Ieterenaimstointegratefurtheritsnon-financialandfinancialinformation.ThiscanbeseenintheActivityreport’sintroduction(“D’Ieterenataglance”onpage2-3)andReferenceIndex(page70-71oftheActivityReport).ThelatterconnectsmaterialtopicsofeachoftheactivitieswithrelatedinformationinboththeActivityandManagementreports.

AnotherD’IeterenambitionistofurtheralignitsreportingtotheGRIStandardsinthecomingyears.Thisiswhy,inadditiontotherequirementsofBelgianlawondisclosureofnon-financialanddiversityinformation,additionaldetailshavebeenreportedforeachmaterialtheme.

Aspartofthisapproach,theD’IeterenGroupandeachactivityinterviewedoneoftheirkeystakeholderstogetaperspectiveontheiractualandpotentialimpactontheirstakeholders’ecosystems.AsummaryofeachoftheseinterviewscanbefoundintheActivityreport.

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2.D’IeterenAuto1

2.1.DESCRIPTIONOFTHEBUSINESSAspartofits70-yearoldrelationshipwiththeVolkswagenGroup,D’IeterenAutoimportsanddistributesthevehiclesofVolkswagen,Audi,SEAT,Škoda,Bentley,Lamborghini,BugattiandPorscheacrossBelgium,alongwiththebrands’respectivesparepartsandaccessories.

Itisthecountry’snumberonevehicledistributor,withamarketshareofaround21%.D’IeterenAutomanagesastrongnetworkofindependentdealersacrossthecountryandcorporatelyownsdealershipsontheBrussels-Antwerp-Mechelenaxis.

BesidesdistributingvehiclesinBelgium,D’IeterenAutoprovidesafter-salesservicesthroughitsCorporate-ownedoperations.Theseincludebodywork,maintenanceandrepair,glassrepairandtyrereplacement.ItalsosellsusedvehiclesthroughMyWaycentresandMyWayAuthorizedDistributors.Inaddition,D’IeterenAutoprovidescarfinancingandlong-termcarrentalservicesthroughajointventurebetweenD’IeterenandVolkswagenFinancialServices.Finally,itdistributestheproductsofYamahainBelgiumandtheGrandDuchyofLuxembourgthroughD’IeterenSport.

D’IeterenAuto’sbusinessmodeliscurrentlyevolvingtowardstheofferofmorefluid,accessibleandsustainablemobilitysolutionsasawayofimprovingtheday-to-day livesof citizens.Thecompany is focussing stronglyonpromoting responsiblemobility,mainly through the initiativesof its subsidiary LabBox.

D’Ieteren Immomanagestherealestate interestsoftheD’IeterenGroupinBelgium.2018wasthesecondfullyearofactivity,duringwhichvarious investmentprojectswerecompleted.Itstrainedteamshavealsobeenstudyingtheviabilityofrenovatingcertainsitesinordertoidentifyfuturesourcesofinnovationandcreativity.Inadditiontomanagingpropertyassets,thecompanyofferspropertyconsultingservicestothetenantsoftheapproximately30sitesintheportfolio.

2.2.GENERALAPPROACHTOSUSTAINABILITYAlthoughitactsasavectorofprosperityandintegration,mobilityalsofaceschallengesrelatedtoeconomic,environmental,socialandsecurityrelatedissues.D’IeterenAutoisawareofthisandacceptsitsshareofresponsibility.Toimprovethelivesofcitizensthroughfluid,accessibleandsustainablemobilityisitsprimarycommitment,andtheonethatisclosesttothespiritofthecorebusiness.D’IeterenAutoisthereforeworkingtobuildaraftofmobilityservicesthatwillenablecitizenstotraveleasilyandinasustainableway.ItwillachievethisthroughtheLabBoxsubsidiarythatisheavilyinvolvedincreatinginnovativeandflexiblemobilityservices,butalsothroughitscorebusinessbydevelopingarangeofserviceslinkedtotheuseofelectriccars.

D’IeterenAutoalsostrivestoreduceitsenvironmentalfootprintbytransformingitsinfrastructureandadaptingitsbehaviour.Overrecentyears,D’IeterenImmohasimplementedvariousmeasuresaimedatusingenergymoreefficientlyandintegratingalternativeenergysources.

Anotherpriorityforthecompanyistoofferitspeopleaworkingenvironmentthatissafeandenriching,wherewell-beingisn’tjustaslogan.D’IeterenAutohaslaunchedmultipleinitiativestoimprovestaffwelfare,enabletheirprofessionaldevelopmentandenhancetheirworkingenvironmentandconditions.

Finally,throughitsGive&Gainpatronageprogramme,D’IeterenAutoisfullycommittedtocausesthatarerelatedtosocially-responsiblemobility–wherethecompanycanbringrealaddedvalue–whilesimultaneouslyencouragingitsemployeestogetinvolvedinsuchcauses.

2.3.ALLMATERIALENVIRONMENTALANDSOCIALASPECTS1)Climateimpact/CO2 emissions2)Wastemanagement3)Innovation4)Sustainableprocurement5)Customerwelfareandsafety6)Employeedevelopmentandwell-being7)Employeesafety8)Communityengagement9)Ethicalprinciples a.RespectforHumanRights b.Notoleranceforcorruptionandbribery c.Inclusionanddiversity

1ThoughD’IeterenImmoisaseparateentitysince2016,itsnon-financialinformationhasbeenintegratedinthedifferentsectionsofD’IeterenAuto.


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Whatwasachievedin2018

TheD’Ieterensubsidiary,LabBox,workedhardto develop and expand its products and ser-vicesrelatedtointermodalmobility.InJanuary2018, Lab Box successfully launched Poppy inAntwerp,whichnowmanages350sharedcars(incl.200electricVWGolf)and25scooters.Bythe end of the year it had 20,000 registeredclients.

Partlythankstoitssolarpanels,D’IeterenImmoproduced41.5%ofitsownelectricityneeds.Italsoinstalledinseverallocationsgreencorridors aimedatprotectingbiodiversity.

To promote clean mobility, D’Ieteren Immocreated a new parking for bikes in the D’Ieteren Mail building, including a changingroomforpeoplewishingtocommutebybike.

Wayforward- D’Ieteren Auto will continue to expand its

offerof electric cars and related infrastruc-ture,includingbybuildingontheVolkswagen Group’sambitiouse-mobilityoffensive.

- D’IeterenImmoaimstoself-produce50%ofitselectricityneedsfromrenewablesourcesby2020.

- LabBoxwillcontinueinnovatinginthefieldof responsible mobility (see Innovation aspectP.127).

UNsustainabledevelopmentagendaD’Ieteren Auto’s distribution activities have a negative impacton the climate. However, thecompany is trying to reduce this impact by adapting its offer and developing alternative mobi-lity solutions and by producing renewableenergy.

Whyitismaterial

D’IeterenAuto’smainimpactontheenvironmentconcernsitsactivityofdistributingpollutingcom-bustionvehicles.Thishasresulted innewchallengesforD’IeterenAuto’sbusinesscontinuity,e.g.stricterlegislation,suchasnewformsoftaxationontransportationandnewcarpoliciesincompa-nies.Ontheotherhand,itcreatesgreatopportunitiestodevelopinnovativenewmobilitysolutions.

Inadditiontotheproductsitdelivers,D’IeterenAuto’sownoperationsandprocessesalsohaveanenvironmentalimpact.ThisismainlymanagedbyD’IeterenImmo.

Management approach

D’Ieteren Auto is expanding its clean car offer. In particular, it provides a complete solution (infrastructure)toprivateelectriccarclientsandspecificsolutionsforcompanies.

Thecompanyalsodevelopsalternativemobilitysolutions,notablythroughitssubsidiaryLabBox(Carsharing,Intermodality,Maasplatforms,…)

Internally, it raises awareness among employees: promoting working from home, environment- friendlydrivinghabits,multimodalsolutionssuchascombiningpublictransportandcompanycars,cyclingorcar-poolingwithguaranteedparkingspace.

The company adopts D’Ieteren Immo’s approach to (renewable) energy management, thereby lowering the energy consumption of its buildings while increasing the share of self-produced renewableenergy.

Casestudy:acomprehensiveelectricsolutionElectric D’Ieteren Solutions (EDI) is a smart solutionpackforprivateandprofessionalclientstoloadandstoreenergy.

Keyindicators- 41.5%ofD’IeterenImmo’selectricityisself-producedfromrenewablesources.- EvolutionofD’IeterenAuto’scarbonfootprintsince2016:

CLIMATEIMPACT/CO2EMISSIONS

20Kuserssubscribed

Poppy

2M kmdriven

232 tonsof C02 saved

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Whyitismaterial

Usedcarscontainmanyvaluablematerialsthatshouldbe reusedupondisposal.As resourcesbecomescarcer,therecyclingofcomponentsisawayofcontributingtothecirculareconomy.

Nexttoitsproducts,D’IeterenAutofurtherpro-duceswastethroughitsownafter-salesactivi-tiesandinitsoffices.

Thecompanyidentifiedseveralrisksrelatedtothemanagementofwaste, includingbreakingof environmental laws, fines and reputationalimpact.

Management approach

D’IeterenAutohas awastemanagementpolicy inplace. Employeesare trained to correctly sortandcollectwaste(includingpaper,residualwaste,scrap iron,wood,tiresandglass) in itsoffices,workshops,storesandgarages,aswellastostoreharmfulmaterials.

For the disposal and recycling of its waste D’Ieteren Auto works together with waste management firms like Suez, Oilco, Dechamps and RecupBat. A project coordinator of the main waste collector(Suez)performsperiodicsitevisitsforthefollow-upandoptimizationoftheon-sitewaste management.

D’Ieteren Auto also facilitates the recycling of used-vehicles, in particular by offering an extra allowancetoclientsandnon-clientsreturningtheirvehiclesforrecycling.Inthisfield,D’IeterenAutoisworkingwithFebelauto,whosemissionistoorganiseandmonitorthemanagementofend-of-lifevehicles,inaccordancewiththeEuropeanDirectiveinforce.Currently,Febelautoisabletorecycleabout95%oftheweightofthesevehicles inanapprovedand inspectedsystem,placingBelgiumamongtheleadersinEurope.

KeyindicatorIn2018,morethan76.5%of thecompany’swastewasrecycled (comparedtomorethan75% in2017).Themajorityofthiswaspaper/carboard,iron,wood,oil,tiresandcarbatteries.


In2018,D’IeterenAutostartedbuildinganewworkshoptorepair/upgradehighvoltagebatteries (ofelectric/hybrid) cars.Given the safetyhazard related tohighvoltagebatteries, this isahighlytechnical facilitywith strict safety requirements. Theworkshop,which requiredan investmentof EUR1million,shouldbereadyinMay2019.

WayforwardBymonitoringthewastearisingfromitsdaytodayactivities,D’IeterenAutoiscontinuouslylookingforwaystoreduceit.

UNsustainabledevelopmentagendaD’Ieteren Auto has a policy of environmentally sound management of vehicle waste and related chemicals throughout their lifecycle, in accordance with the regulatoryframeworkinforce.

WASTEMANAGEMENT


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Whyitismaterial

Thecarofthefutureisbeingshapedbytechno- logical advances, such as electrification, developmentsinconnectivityandautomation, and the introduction of smart, multi-use features. Societal and economic changes arealso transforming the concept of mobility,amidtighterrestrictionsoncars,newformsof taxation and the shift towards a sharing economy. Through innovation, D’Ieteren Autowants to be at the forefront of tomorrow’s mobility markets and thereby ensure its businesscontinuity.

PikawayisthenewMaaSplatformlaunchedby D’IeterenAuto’ssubsidiaryLabBox.

Management approach

D’IeterenAuto’sbusinessmodelisevolvingtowardstheofferofmorefluid,accessibleandsustai-nablemobilitysolutionstoimprovetheday-to-daylivesofcitizens.Tosupportthisnewapproach,D’IeterenAutohas launchedanewproject calledMagellan to setupaclear strategyanddefineactionplans.

Through its Lab Box subsidiary, D’Ieteren Auto continues to explore, analyse and develop flexibleandinnovativeservicesrelatedtomobility.LabBoxdevelopsnewinitiativeswithafocusonintermodalityandMaaS(MobilityasaService).


InSeptember2018,LabBoxinitiatedaMaaSplatformcalledPikaway,whichallowsrouting,bookingandpaymentforintermodalmobilitysolutions.ItwaslaunchedinJanuary2019inAntwerp.

KeyindicatorBudgetinvestedintheLabBoxsubsidiary:2017:+/-EUR2.3million2018:+/-EUR6.5million

WayforwardLabBox iscurrentlydevelopingdifferent initiativesaimedat improvingmobilityandmakingcitiesmoreliveable,including:

- Lizy,afullydigitalleasingplatformofsecond-handvehiclesforSMEs.- MyMove,anappmakingiteasyforemployeestolocate,selectandunlockvehiclesofthefleetand

managetheirbudget.- Anautonomousvehicleoperator,throughwhichD’Ieterenwillprovidevehicleleaseandsupport

servicesforautonomousshuttleprojectsincities,companiesororganisations.

UNsustainabledevelopmentagendaD’IeterenAutocontributestosustainablecitiesbylookingforsolutionsforsustainablemobilityservices.

INNOVATION

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Whyisitmaterial

Asa vehicledistributor,D’IeterenAuto’smainpurchase item is cars,making it highlydependentonitspartnershipwiththecarproducers.Anyproblemswiththesedirectsuppliersmight impactD’IeterenAuto’sownreputation.Inadditiontothecarproducers,D’IeterenAutohasother(indirect)suppliers,whichitensuresarerunasresponsiblebusinesses.

Management approach

Forcars,D’IeterenAutohasbuiltasolidpartnershipwiththeVolkswagenGroup.Wholesaleagree-mentshavebeenformalizedandarerevisedperiodically.

Foroperationalindirectspending,thepolicyistwofold:

1.SuppliersofD’IeterenAutomustsigntheprocurementcharter.Indoingso,theycommittotheTenPrinciplesoftheUNGlobalCompact.

2.When selecting indirect operational products and services, on top of the usual quality/price criteria, social, environmental and ethical criteria are also considered. Preference is given to suppliers that are local, havebeen certifiedusingenvironmental and socialmeasurementanddatamanagementsystems,haveadoptedanethicalcharter,belongtoanetworkofresponsiblebusinessesanddemonstrateaproactivepolicyintermsofenvironmentalandsocialengagement.

Keyindicator20to25%ofthesuppliershavesignedtheprocurementchartertodate.


The new distribution contracts signed at end2018 with the factories of the Volkswagen Group and D’Ieteren Auto’s authorised distributors contain a specific section relatingtothegeneralobligationforallmembersofthe distribution network to comply with national and international standards and values – particularly those relating to sustainable development, labour protectionand the environment. These standards andvaluesformthefoundationoftheVolkswagenGroup’s own economic development and thecontract allows it to verify that its partners are incompliance.

WayforwardD’Ieteren Auto aims for 100% of indirect suppliers to have signed the procurement charter.

UNsustainabledevelopmentagendaD’Ieteren Auto takes into account social, ethical and environmentalcriteria when selecting productsandservices.

SUSTAINABLEPROCUREMENT

CUSTOMERWELFAREANDSAFETY

Management approach

D’Ieteren Auto has opted for a customer- oriented approach, which implies that itconstantly strives to understand clients’ needs in order to answer them in an appropriate and timely manner. Its Market Area projectlaunched in 2015 has been aimed at offeringclientsacompleterangeofservices, includingbodywork and sale of used vehicles, in thesamearea.D’IeterenAutoalsotriestoadaptitsproductoffertoclients’needs,includingfinan-cialservicesthroughitsVDFinjointsubsidiary.Anexample isthe“Wecover” insuranceplan,which isspecificallydesignedfortheneedsofyoungdrivers.

Today, the mission of D’Ieteren Auto has evolvedtomeetclients’mobilityneedsbeyondtheuseofacar.This isreflectedinthestatedpurpose to “improve people’s lives throughfluid,accessibleandsustainablemobility.”Withthisnewapproach,D’IeterenAutohasevolveditsoffertoreflectnewtrendslikedecarbonisa-tion,digitisation,sharedmobilityandautoma-tion.Finally,acustomercareteamisavailableto answer any questions clients may have concerning D’Ieteren Auto’s products and services.

KeyindicatorCustomerDelightIndex2018:- Sales:90.7- After-sales:87.8


D’Ieteren Auto launched its Mobility 2025 visionandsetuptheMagellanprojecttoimple-mentthevisionbydeterminingaglobalstrategy anddefiningactionplans.

WayforwardD’IeterenAutowill continue to implement itsMobility2025visioninseveralfields,includingsustainable mobility, electric mobility, sharedmobility,mobilityasaservice(MaaS),connec-tedmobilityandautomatedmobility.

UNsustainabledevelopmentagendaD’Ieteren Auto focuses on client welfare and satisfaction throughtailoredbusinesssolutions,therebyachievinghighproductivity.

Whyisitmaterial

Customer welfare and safety are highly important for D’Ieteren Auto, which aims toremain the provider of choice for all of its clients.Anyfailurecouldharmtheimageofthe companyandthebrandinBelgiumandleadtoalossofmarketshare.

Casestudy:autonomousshuttlestodecreaseroad accidentsThroughitsLabBoxsubsidiary,D’IeterenAutoisdevelopinganautonomousvehicleoperator.Thelatterwillprovidevehicleleaseandsupportservicestorealiseautonomousshuttleprojectsin cities, companies and organisations. Accor-ding to the FPSmobility and transport, auto-matedmobilitycouldreduceroadaccidentsby90%.


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Whyitismaterial

Inanevolvingsector,staffneedtobereadytotackle new and future challenges. PreparingD’Ieteren Auto for these challenges beginswithdevelopingalearningmindsetamongstaffand providing themwith learning facilities. In addition to helping employees develop theirskills, D’IeterenAuto is committed to keepingthem happy. The efficiency of the business relies on its employees and their commitment to improving both personal and collective performances.

Management approach

D’Ieteren Auto encourages people’s personal and professional development through appraisals and coaching sessions. Jobs in thecarsectorrelyonveryspecifictechnicalskills,thereforethecompanypromotestheparticipa-tionindedicatedtrainingsandworkshops.

The company also respects clear governance principlesintermsoffairness,transparencyanddialogue. In particular, the CaReerModel hasbeensetuptoincreasetransparencyintermsofexpectations,skillsandresults,whileofferingcareeropportunitiesacrossthebusiness.ASuc-cessionPlanalsoexiststoensureapipelineofpotentialsuccessorsforallkeypositions.

Employee welfare is also a priority. Amongother advantages, homeworking is encou-raged and was facilitated by a communica-tion campaign called “Ho.ffice, another wayto be @ work”. The campaign was launchedin September in order to determine the idealhomeworking conditions and facilitate accesstoallemployees.

In terms of stress and burnout, employeescan count on help from an internal person of trustoranexternalpreventionadvisor,aswellas theofferof learningprogrammes (burnoutprevention, time management, breathingand relaxation techniques, etc.) Individual coaching is provided to help employees cope withpsycho-socialissues.


MySkillCampisaLearningExperiencePlatformaimedatputtingtheemployeesinthedrivingseat oftheirownpersonaldevelopment.Itenablesthemtotraininacontinuousandautonomousway, includingthroughe-learningsandwebinars,andprovidesthemwithanaccesstoalibrarycontaining10,000books.MySkillCampwaslaunchedinapilotphasein2018andwillberolledoutin2019forallemployees.

Intermsofwell-being,asfrom2018amedicalcheck-upfortheover-50sisoffered1x/3years(which67employeesusedin2018).

WayforwardD’IeterenAutowill launch a recruitment campaign forMySkillCampandmake sure that at least95%ofemployeeshaveanactiveaccount.ThetoolwillevolveintoaLearningExperiencePlatform,allowingotherpersonaldevelopmentinitiativeslikementoring.

Intermsofwell-being,thetrainingofferwillbeexpandedtoincludeworkshopsondigitaldetoxandhealthyfood.Aworkshoponcardiopulmonaryresuscitationtechniques(CPR)willalsobeproposed,includinghowtouseanexternaldefibrillator.

KeyindicatorTraininghours:- 2016:38,664hoursor2.95day/employee- 2017:39,605hoursor3day/employee- 2018:41,916hoursor3.15day/employee

UNsustainabledevelopmentagendaD’Ieteren Auto is committed to the personal and professional development of its employeesandthecreationofadecentworkingenvironment.

EMPLOYEEDEVELOPMENTANDWELL-BEING

Eachyear,employeeswith10yearsofserviceinthecompanyhavetheopportunitytovisittheVolkswagenGroup’sfactoriesandtocelebratetogethertheircollaborationdecade.

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Whyitismaterial

D’Ieteren Auto operates in the field of car &spare parts distribution and carmaintenance,andthemajorityoftheworktakesplacearoundpotentiallydangerousmachineryandchemicalproducts. Guaranteeing that employees areprotected fromall hazards in their dailyworkis one of D’Ieteren Auto’s highest priorities.In addition, by promoting employee welfare, D’Ieteren Auto can prevent costs arising from staffinjuriesandabsenteeism.

Whyitismaterial

D’Ieteren Auto’s community engagement policy mainly relates to socially-responsible mobility.Connectingbusinessandsolidarityenablesthecompanytomaximisetheimpactofitsphilanthropicinitiatives.

Management approach

Withits‘Give&Gain’philanthropypolicyD’IeterenAutoaimstosupportcharitiesconnectedtoitswork.Thepolicycontainsthreetypesofactivity:

1.Volunteering activities: employees can form a team and dedicate a work day to charitable projects.

2.Annualcallforprojects:D’Ieterenoffersone-offfinancialassistancetonon-profitorganisations, inresponsetotherequestsfromcompanyemployeeswhoseektofinanceaproject.

3.Long-term programmes that invest in larger-scale social projects, with the potential to drive positivechangecloselylinkedtosocially-responsiblemobility.

KeyindicatorOutcomeoftheD’IeterenMobilitychallenge:- Morethan300employeesvolunteeredfor the challenge- Overall,EUR40,000wasdonated,enabling D’Ieteren Auto to support four different projects.

Management approach

There is a zero-tolerance policy towardsnon-respect for safety standards. Workersin maintenance workshops carry out risk assessments, make inventories of protec-tion and intervention measures and conductworkshopsonfirepreventionandsafety.

KeyindicatorsNumberofworkaccidents- 2016:50- 2017:43- 2018:29Numberoflostworkdays- 2016:2,085- 2017:776- 2018:742Hours of safety training - 2016:667- 2017:530- 2018:1,724


Initiatives in 2018 included: first aid trainings,firefighting training, training on high-voltagebatteriesandariskanalysisonfiresafety.

WayforwardD’Ieteren Auto aims to get as close as pos-sibletozero incidents.While itrecognizesthe impossibility of eliminating all risk, the com-pany aims to remain under the frequency rate andtheglobalseverityrate intheautomobile sector. It also aims to reduce absenteeism as far as possible and to remain below the totalprivatesectorabsenteeismrate(7%in2017inBelgiumaccordingtoaSecurexstudy).

UNsustainabledevelopmentagendaD’Ieteren Auto is committed tothe safety of its employees and the creation of a decent working environment.


In 2018, more than 300 employees walked,ran and pedalled about 80,000 km overall insupportof charityprojects related to socially- responsible mobility. The kilometres wereconverted into Euros via a dedicated applica-tion.Thefinalamountwasusedtobuybicycles for children in need, as well as prosthetic sportinglimbsfordisabledchildren.

WayforwardTheGive&GainMobilityChallengewillbeheldagain in 2019andwill be associatedwith theannual call for projects. Themoney collectedby staff, based on kms covered, will finance projects related to solidarity mobility set up afterthecallforprojectsfromBelgiancharities.

UNsustainabledevelopmentagendaAs a sponsor of long-term pro-grammes closely linked to socially- responsible mobility, D’Ieteren Auto contributes to more accessible transportation systemswith special attention to those invulnerablesituations.

EMPLOYEESAFETY

COMMUNITYENGAGEMENT

The2018GiveandGainmobilitychallengeenabledthe purchaseofprostheticsportinglimbsfordisabledchildren.


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Whyitismaterial

D’Ieteren Auto operates only in Belgium andcomplies with a strict social/legal frameworkthat addresses areas like working conditions,health and safety requirements and collectivebargainingregulations.

KeyindicatorThe Code of Ethics was revised in 2018 and publishedonthecompanyintranet.

Managementapproachandresultofthepolicy

D’IeterenAutoiscommittedtopromotingaworkenvironmentinwhichpeoplerespecteachother.Behaviour including harassment, intimidation, oppression, exploitation, discrimination, racism,sexismorhomophobiaisnottolerated.Aspeak-uppolicyhasbeenputinplaceforpeoplethathavewitnessedorbeenthemselvesthevictimofinappropriatebehaviour,discriminationorharassment.

Thecompanyalso invests inemployee safety,developmentand satisfaction (seeEmployeeWell-beingandDevelopmentaspect,p.129).

Furthermore,D’IeterenAutorequiresallofitsnewsupplierstoadheretoitsProcurementCharter, which implements the Ten Principles of the UN Global Compact (see Sustainable Procurement aspectp.128).

UNsustainabledevelopmentagendaD’Ieteren Auto makes sure that individual rights are respected throughout the organisation.

ETHICALPRINCIPLESIRESPECTFORHUMANRIGHTS

Whyitismaterial

Corruption, attempted corruption, fraud andmoney-launderingconstitutearisktoboththeemployee and the company since they are a reason for legal pursuit and would affect thecompany’sreputation.

KeyindicatorNo incidents linked to corruption or briberywerereportedin2018.


The company’s Code of Ethics – “TheWayWeWork” –makes it clear that all employeesmust respectanti-corruptionandanti-briberylaws.Corruption,attemptedcorruption,fraudandmoney- launderingarenottoleratedwithinthecompany.Giftsandinvitationsthatemployeesreceivefromclients,suppliersoranyotherpartners,orthatemployeesoffertoclients,mustbeincompliancewithcommercialpracticesandanti-briberylegislation.

UNsustainabledevelopmentagendaD’IeterenAutoplaysitspartincollectiveeffortstopreventcorruptionandbriberyinalltheirforms.

ETHICALPRINCIPLESINOTOLERANCEFORCORRUPTIONANDBRIBERY

Whyitismaterial

D’IeterenAutoisconsciousofitsresponsibilitytoprovideitsemployeeswithafairworkplace,inwhicheveryonehasthesameopportunities,irrespectiveoffactorslikegender,age,cultureorphysicalabilities.

KeyindicatorEvolutionoftheratiooffemaleemployeesinmanagerialpositions: -2016:20.63% -2017:23.12% -2018:23.18%


As clearly indicated in its Code of Ethics, D’Ieteren Auto guarantees equal opportunities in the workplace.Skillsandperformancearetheonlycriteriathatareconsideredwhenmakingdecisionsrelatedtohiring,promotionsorjobrotations.

UNsustainabledevelopmentagendaD’IeterenAutocontributestoSDG16,whichaims,amongothertargets,topromoteandenforcenon-discriminatorylawsandpoliciesforsustainabledevelopment.

ETHICALPRINCIPLESIINCLUSIONANDDIVERSITY

ETHICALPRINCIPLESD’IeterenAutohasissuedaCodeofEthicscalled“TheWayWeWork”,whichispersonallyhandedtoallnewemployees,andwhichremainseasilyacces-sibleinitsdigitalversiononthecompany’sIntranetsite.

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3.Belron

3.1.DESCRIPTIONOFTHEBUSINESSBelronistheworldwideleaderinvehicleglassrepairandreplacement,operatingin35countries,throughwholly-ownedbusinessesandfranchises,withmarketleadingbrandsincludingCarglass®,Safelite®AutoglassandAutoglass®.Inaddition,itmanagesvehicleglassandotherinsuranceclaimsonbehalfofinsurancecustomers.Withitscorporatepurposeto“makeadifferencebysolvingpeople’sproblemswithrealcare”,Belronfocusesonhigh-qualityservicesthatgenerateaveryhighlevelofcustomersatisfaction.BelronInternationalLimited,basedintheUK,actsastheglobalsupportcentreforalloperations,whichareeachrunandmanagedlocallybyanexecutiveteam.In2018,theBelrongrouphad30,567people,2,674servicecentresand10,730mobileunits.

Overthecourseof2018,Belroncontinuedtoexpanditsservicesintotheautomotivedamageandhomedamagerepairandreplacementmarkets.Itacquiredtargetedbusinessescarryingoutautodamagerepairandreplacement(ADRR)andhomedamagerepairandreplacement(HDRR)invariouscountries.

3.2.THEGENERALAPPROACHTOSUSTAINABILITYBelronhasanactiveapproachtocorporateandsocialresponsibilitythatisalignedtotheUnitedNationsGlobalCompact,towhichitisasignatory.Thebasisforitsimplementationislefttotheindividualbusinessunits,whichdefinetheirownstrategyandobjectivesbasedontheirlocalcontext.ThisisdonewithsupportandbestpracticeguidancefromBelronInternational.

TheCSRstrategyconsistsofprogrammesrelatedtotheenvironmental,socialandethicaldimensions.Theenvironmentalprogrammefocusesonamini-mum,responsibleuseofresources,recyclingwherepossibleandreducingcarbonemissions.

Thesocialdimensionisaimedatsupportingnumerouscausesthroughitsbusinesses’localGivingBackprogrammes,inlinewiththecommitmenttothesocietiesinwhichitoperates.Withregardstoethics,itwasdecidedin2018foreachbusinessunittodefineitsowncodeofconductbasedontheBelronGuidingPrinciplesandtheTenPrinciplesofSustainableBusinessundertheUnitedNationsGlobalCompact.Thisapproachenablesthebusinessunitstocustomiseandpersonalisetheircodesofconducttobetterreflectlocalpoliciesandlegislation,therebymakingthemmorerelevanttotheiremployees.In2019,allbusinessunitswillimplementtheirowncodesthroughawarenessandtrainingprogrammes.ThiswillensurethatallBelronpeoplehaveaclearsetofbehaviouralguidelineswhileprovidinganethicalframeworkforthebusinessasawhole.

3.3.ASSESSINGPROGRESSTOWARDSSUSTAINABILITYGOALS

Belron’sprogresstowardsbecomingasustainablebusinessismeasuredexternallybyEcovadisusingitssustainabilityplatform.Ecovadishasbeenhelpingorganisationsassessandsupporttheirsustainabilityambitionsforover10years.ThetoolallowseachofBelron’sbusinessestobeexternallyassessedontheirprogressinmeetingtheBelronCSRstrategyandobjectives.TheassessmentevaluatesthegapbetweenthecommitmentsoutlinedintheprinciplesoftheUnitedNationsGlobalCompactandthecurrentstatusofactionstakenineachBelronbusiness.Itprovidesabenchmarkagainstover45,000otherorganisationswhohavebeenassessedbyEcovadisfromover90countries,andascorecardwhichidentifiesspecificandprioritisedopportunitiesforimprovement.Theassessmentalsousesquestionsfromotherinternationally-recognisedCSRframeworks;ISO:26000andtheGlobalReportingInitiative(GRI).

Eachbusinessisevaluatedonthepoliciesinplace,thestepstakentoimplementthosepoliciesandtheoverallresultsofthoseactions.Theevaluationassessestheactivitiesrelatingtofourthemes:minimisingtheimpactontheenvironment,labourpracticesandhumanrights,customerrelationsandfairbusinesspractices,andsustainableprocurement.OnceEcovadiscompletestheanalysis,eachbusinessreceivesafullscorecardandaratingscorebetween1and100.Ifthebusinessscores37orabovetheyreceivearecognitionlevelofBronze,SilverorGold.Thescorecardprovidesguidanceonareastoprioritiseinordertomakeimprovements.Eachbusinessunitisthenresponsiblefordefiningitsownactionplanforimprovement,withsupportfromBelronInternational.


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Attheendof2018Belronhad10businessesratedGoldand10ratedSilver,sixofwhicharewithinfivepointsofbeingGoldrated.Overall,theBelrongrouphasmadegoodprogresstowardsitstargetofhavingallitscorporatebusinessesGold-ratedbytheendof2020,withtheaveragescoreincreasingto60.4in2018.

WhiletheaveragescoreplacesBelron inthetop15%ofthe45,000+companiesassessedbyEcovadis,therearesomeoutstandingperformers,with CarglassinFrance,BelgiumandItalybeingrankedinthetop1000companiesassessed.

InMay2018,theannualCSRWorkshopsawAmbassadorsfrom10Belron countries reviewprogress and sharebestpractices. Stresswasplacedonhowcreatingaresponsibleandsustainablebusinesssupportsthepurposeandambitionofthatbusiness,andtheroleoftheAmbassadorsininspiringandinfluencingit.Representativesfrom Ecovadis presented on changes and improvements to the plat-formand answeredquestions from theGroupon the analysis oftheassessments,theevidenceandthescoringprocess.Duringtheworkshop, praisewent to the best-performing countries: France,BelgiumandItalywererecognisedasachievingthehighestasses- smentscores,withTurkey,theUSAandPortugalbeingrecognisedasbestimprovers.

4.MATERIALASPECTS1.ClimateImpact/C02 emissions 2.WasteManagement3.Innovation4.SustainableProcurement5.CustomerWelfare6.EmployeeWell-BeingandDevelopment7.EmployeeSafety8.CommunityEngagment9.EthicalPrinciples a.RespectforHumanRights b.NoToleranceforBriberyandCorruption

OverallBelronGroupAverageExternalCSRAssessmentScore(Ecovadis)

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In 2018 Belron opened its new European distributioncentreinBilzen,Belgium,bringing5 sites into one building. Incorporating thelatest environmental technology - including natural light collectors, solar panels, LED lightingandsophisticatedHVACbuildingmana- gement controls - it will have a significant impact on reducing carbon emissions and energyusein2019.

Belronlaunchedabestpracticeenvironmentalpolicyblueprinttohelpitsdifferentbusinessesto evaluate their environmental impact and theextentoftheirenvironmentalriskssuchasnoise,airordustpollution,wastemanagement,product safety and packaging. They can then assess what actions they should be taking tomanageandminimisetheirimpact.

Belronhasalsofocusedonmonitoringandeva-luatingthepotentialforalternativefuelvehiclesand has implemented the eNV200 all-electricvan inhigh-job-density areas in France. Therearemajor challengeswith current technologydevelopment as commercially suitable hybridor electric vans only have a real-world auto-nomyof around100km,whereasBelron vansneed on average 200km. The other major factor is how the vans are driven. A core projectteamwasestablishedin2018includingFrance, Belgium, UK and the US to developsomegroupstandardsarounddriverbehaviourbasedonbestlocalpractice,whichwilldeliverrecommendationsforimplementationin2019. Evidence from work by Safelite shows thatsimple actions such as reducing idling timewhile the technician is serving customers and improving driver behaviour can have a big impact,andexperiencelikethiswillbeusedtohelpcreateabestpracticeforthegroup.

Attendees at Belron’s Fleet Manager Workshop, trialing recentelectricvansmodels.

WayforwardBelron will continue to apply its carbon offsetting programme to its global eventsplanned for 2019 and implement group standardsbasedonprojectteamoutcomes.

Whyitismaterial

Asaninternationalcompanywithnationalbusinessesinsixcontinentsacrosstheworld,involvingbranches,warehousesandfleets,Belronhasadirectandindirectimpactonclimatechange.

Non-renewableenergysources,whichcontributetoclimatechangeandairpollution,representariskforBelronduetovolatilityinpricingoffossilfuelsandtheever-increasingburdenofcarbonandairpollutiontaxes.StakeholdersarealsobecomingincreasinglyconcernedaboutclimatechangeandexpectdemonstrableactionfromlargecompaniessuchasBelrontowardsmeetingtheUNclimatechangetarget.

Efforts to reduce climate impact can also represent an opportunity as, in almost all itsmarkets,BelronleadsthewayinofferingaRepairFirststrategy,whichonaveragereducesthecarbonimpactby75%overreplacement.Reducingenergyconsumptionwillalsoreducethecostofdoingbusiness.

Casestudy:Carbonoff-settingforourglobalevents

Since 2017 Belron has begun evaluating thepotentialforcarbonoffsetting.In2018thean-nualtriathlonevent(SpiritofBelronChallenge)and the biannual Best of Belron event wereoffset,inpartnershipwiththeFrenchcompanyEcoAct.

The purpose is to neutralise the environmental impactcausedbygatheringalargegroupofin-ternationalgueststogetherinasinglelocation,by calculating the amount of CO2 created bytheevents.Theamountisthenoffsetthroughinvestinginapositiveinitiativeinanotherpartoftheworld.Inthiscase,theprojectinvolvesdistributing5,753waterfiltersinruralKenya-aproject thathasapositive social aswell asenvironmental impact and will benefit over54,000localpeople.

Management approach

Belron works hard to understand, measureandmanageitsenvironmentalimpacts.Itmo-nitorsthecarbonemissionsdirectlyunder itscontrol, such as those related to the energyconsumptionof its branches and its fleet, aswell as scope 3 emissions related to travel and subcontractedlogistics.Belronhasdevelopedand shared a carbon footprint reporting toolacross all the corporate business units andsupports them in measuring, managing andreducingtheirowncarbonfootprints.

KeyindicatorsIn2018Belronsaved141,000tonnesofCO2throughitsRepairFirststrategy.

Overall,Belronhasmadeprogressinreducingitscarbonemissionsperjobfrom27.1kgin2016to25.0in2018,representinganoverallreductionof7.7%.

BelronhasimprovedtheenvironmentalpartofitsEcovadisassessmentscorefrombeinginthetop19thpercentilein2017tothetop14thpercentilein2018.

CLIMATEIMPACT/CO2EMISSIONS

©Lifestraw

Belron Group CO2IntensityOverTime

UNsustainabledevelopmentagendaBelronworkshardtounderstand,measureandmanageitsimpactonclimatechange,bothlocallyandglobally. Inparticular, itseeksto limit itsemissionsthroughitsrepairfirststrategy.

TheUNGlobalCompact:Belroniscommittedtoprinciples7,8and9oftheUNGlobalCompact,whichaddresscorporateresponsibilitieswithregardtotheenvironment.


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Whyitismaterial

Belron’sbiggestwasteproductbyweightistheglasstakenfromthecustomers’vehicles.Whileitcannotbereused,thereisanopportunitytorecycletheglassintootherproducts.RecyclingtheglassefficientlyhelpsBelrontosignificantlyreduce waste-related costs as well as to mini-miseitsenvironmentalimpact.

Casestudy:thechallengeofwindscreens

There are only a small number of specialisedlaminated glass recycling centres across the world, which makes it more difficult to recy-cle windscreens than normal glass. However,where possible Belron uses its extensive dis-tribution network to return waste glass fromcustomer service centres to its central hubs.This reduces the costs and carbon emissionsfromlocalwastehauliersandallowsBelrontopartner with regional recycling centres close to their Distribution Centres. In Europe, glass isreturnedtoBelron’sEuropeanhub inBelgiumwhereitisrecycledbytwopartners,MalthaandGRL.IntheUS,SafelitehassetupapartnershipwithSharkSolutionstoestablishtwobespokelaminated glass recycling centres, the secondofwhichwasopenedin2018.Safelitenowhasthe opportunity to increase its glass recycling to around90%ofitsoperation.

Management approach

The ‘Repair First’ strategy plays a role in the com-pany’scontinuousefforttoreducewastebyavoi-dingtheneedtoreplaceglass.

However,whenrepairisnotpossible,Belronaimsto recycle the glass waste using innovative ap-proachesandsupplierpartnerships.

Where recycling in its operating countries is notin place or is inadequate, Belron has evaluated alternative options such as reverse logistics andpartnering with local recycling companies to increasethepercentageofproductsrecycled.

WithotherwastestreamsBelronaimsfirstlytominimiseusebysettingtechnicalstandardsfortheamountofproductneededduringeachjobandsecondly,todefineclearlywhattodowithspecificwastestreamstomaximiserecycling.

Keyindicators- 3.1 million repairs saving 44,985 tonnes of

glass waste- In 2018 Belron’s overall average external as-

sessment score for its approach to managing its impactontheenvironmentwas61.7,pla-cing Belron in the top 14% of all companiesassessedbyEcovadis.


In 2018 Safelite extended its glass recyclingpotential from70% to90%byopeningaWestCoastfacilityinadditiontoitsEastCoastfacility.

WayforwardBelron’sambitionistorecycle100%ofitsglasswasteandtoworkwithitsrecyclingpartnersandbusinessunitstoextenditsabilitytorecycleallglass.

UNsustainabledevelopmentagendaBelronaimstoachieveenvironmentally-soundmanagementofglassandothermaterialsthroughouttheirlifecycle,inaccordancewithagreedinternationalframeworks,inordertominimizetheiradverseimpactsonhumanhealthandtheenvironment.Inaddition,Belronworkstosubstantiallyreducewastegenerationthroughprevention,reduction,recyclingandreuse.

TheUNGlobalCompact:Belroniscommittedtoprinciples7,8,9oftheUNGlobalCom-pact,whichaddresscorporateresponsibilitieswithregardtotheenvironment.

WASTEMANAGEMENT

19.3%

7.3%

12.0%

3.7%

21.5%

36.2%

Waste volume avoided doing repair jobs

Other waste to recycling

Other waste to landfill

Other waste to incineration

Glass waste to landfill

Glass recycled

Wastesourcesandtreatmentmethodsin2018

55.9

60.2

61.7

5354555657585960616263

1st Assessment

2nd Assessment

3rd Assessment

(2018)

Asse

ssm

ent s

core

CarefortheEnvironment(Ecovadis)

TheglassseparatorusedbySafelite’spartner, SharkSolutions,torecyclewindscreens.

2016 2017 2018

232,589216,636 216,486 Waste avoided through repair

Glass waste reycled

Other waste to incineration

Glass waste to landfillOther waste to recycling

Other waste to landfill

Belronwasteevolutionovertime

Wasteincreasedduetoan8%increaseinwindscreenreplacements.

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Management approach

Belronhasitsowndedicatedresearchandde-velopmentdivision,BelronTechnical. This is ateamof innovators and thinkers – all focusedon driving technical standards and developing innovations that break new ground in vehicleglassrepairandreplacement.

Belron also invests in other central functional areas such as purchasing, distribution, ope-rations support, customer insight, marketing, digitalandpeopledevelopment.

All of these efforts help Belron maintain its market leadership position and offer cuttingedgeservicestoitscustomers.

KeyindicatorR&Dannualbudget:EUR2.7millionin2018

WayforwardOneofBelron’skeychallengeswithADASistobeabletocalibratenewly-releasedmodelsasitcantakeuptoayearbeforetheexistingcalibra-tiontoolsareupdatedwiththenewsoftware.In2019Belronislookingatinnovativewaysofutilising vehicle manufacturer tools and soft-ware toenablecalibrationofvehiclesassoonas they come off the production line. Whilethiswilladdadditionalcosts, itwillalsoallowall customers to have a seamless customer ser-viceexperiencewhentheybringtheirvehiclestoBelron.

Belronhasalsobeencarryingoutdetailedcus-tomer research across different countries tovalidate what customers expect from Belronandhowbest todeliver it. These insightswillbe prioritised and developed into group-wideprojectsinthecomingyear.

UNsustainabledevelopmentagendaBelronaimstoachievehigherlevelsof economic productivity throughdiversification,technologicalupgra-dingandinnovation.

Whyitismaterial

InnovationisanimportantareaforBelron,whichinvestsheavilyinensuringthatitisattheforefrontofglassandvehicletechnologyinordertobewellpreparedforchangesintheVGRR*andADRR**markets.Inaddition,itfocusesondevelopingnewtoolsandtechniquestosupportthebusinessinoperatingefficientlyandsafelybothforitscustomersanditspeople.

Amongstotherexamples,maintainingBelron’smarketleadingGlassMedicrepairsystemandHPXresintechnologyhasbeenimportanttomaximiserepairpotential,tooffercustomershighqualityserviceandtolowerthecostoffixingdamagedvehicleglass.

Casestudy:saferwindscreencutBelronhascontinuallypioneeredbetterandsaferwaysofcuttingoutwindscreens.Byreplacingkni-veswiththepatentedEziwire,thecut-outprocessbecamemucheasierandsaferforthetechnician.Themetalwireusedoriginallyhasnowbeenre-placed by an innovative fibre-line which remo-ves the risk of damaging the car while allowing thelinetobereusedmultipletimes,ratherthanonce,aswasthecaseforthemetalwire.


In2018significantstepsforwardweremadeinBelron’sabilitytoofferADAS(AdvancedDriverAssis-tanceSystem)calibrationservicestoallitscustomers.Thiswasacombinationofproductdevelop-ment,toolsandtraining,andpartnershipswiththirdpartycompaniestoextendtheproductofferingtowards100%ofallADAScustomersinamoreseamlessway.

ThiswasunderpinnedbyresearchattheMotorIndustryResearchAssociationintotheimpactofcorrectly and incorrectly calibrated vehicles toensure a clear understanding of the standards and risks associated. Belron is now a leader inthis technology through its in-house expertiseandindependentthird-partytesting.

Extending Belron’s offering by adding central-ly-tested and developed added-value products such as rain repellant and windscreen wipers has been another key addition that is driving bothcustomersatisfactionandsalesvalue.

*VehicleGlassRepairandReplacement**AutomotiveDamageRepairandReplacement

INNOVATION


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Whyitismaterial

Almost 40% of Belron’s turnover is spent onbuyingproductsandservicesfromothercom-panies. Themajority by value is the glass butthere aremany other products, such as glue,repair resin, trims and mouldings, tools anduniforms. First and foremost, Belronneeds tobe sure that the suppliers’ businessethics re-flectitsown,astheybecomepartofthevaluechaindeliveredtothecustomer.WhileBelronhasbeendoingthisinthepast,moreandmorelegislation is being introduced that requiresmore diligence and clear evidence that com-panieslikeBelronarevalidatinghowsuppliersmanagestheirbusinessandhowitsources itsproducts-forexampleonquestionsofmodernslavery,anti-briberyandcorruptionandscope3emissions.Inaddition,supplierswithpoorfi-nancialoroperationalmanagementposeariskto the continuity of the supply chain. From abrandperspective,ifsuppliersareusingunethi-cally soundpracticesor sub-suppliers this canreflectnegativelyonthereputationofBelron.

Management approach

Belronmanagesanumberofsuppliers throughgroupwidepurchasingagreementsandperformsvariouson-siteaudits,externalassessmentandcontractualdiscussionstoensurethatsuppliersarefitforpurposeandmeetBelron’sexactingstandards.

EachBelronbusinessunithasitsownprocessofmanagingtheriskandsustainabilitycriteriaofitslocalsuppliers.Thisisevaluatedaspartofthebusinesses’CSRassessmentandbenchmarkingpro-grammeusingtheEcovadisplatform.

Keyindicators64%ofallcentrally-managedsuppliershavebeenassessed, equivalent to 33% of the total groupspend.

In2018Belron’soverallaverageexternalassess-ment score was 52.1 (level ‘Confirmed’) for itsSustainable Procurement approach. This placesBelroninthetop19%ofallcompaniesassessedbyEcovadis.


In2018Belronimplementedanewprocessfortheapprovalofbothnewandexistingcentrallyma-nagedsuppliers.

EveryGroupsuppliernowundergoesanassessmentoftheirfinancialstanding,legalcompliance,riskmanagement,andCSRperformance.ThelatterisdonethroughtheEcovadisplatform,whichensuresthatallsuppliersmeetthelateststandardsacrossallareas.

Suppliersarerequiredtopassallpartsoftheprocesstobeofficiallyapprovedforuse,scoreatleastasilverrating,andmustdemonstrateongoingimprovementinordertoremainaBelron-approvedsupplier.

WayforwardBelronaimstohaveallsuppliers(incl.localbusinessunitsuppliers)assessedandmanagedaccordingtotheirriskprofile.Inthelongertermtheambitionistohaveagold-ratedsustainablesupplychainasassessedbyEcovadis.BelronInternationalhasalsoadoptedaleadaccountabilityfortheprocu-rementof indirectmaterials. Thiswill lead tomore consistency in theassessmentof sustainableprocurementapproaches,especiallywithlargerregionalorglobalsuppliers.

UNsustainabledevelopmentagendaBelronseekstoprocurequalityproductsfromresponsibleandsustainablesourcesandtominimizetheenvironmentalandnegativesocialimpactofitsvaluechain.

SUSTAINABLEPROCUREMENT

CareforourSupplyChain(Ecovadis)

Belron’snewdistributioncenterinBilzen,Belgium.

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Whyitismaterial

The Belron customer sits at the heart of thebusinessandthecompany’spurposeto ‘solveproblemswith real care’. Tomaintain itsposi-tion in themarket and to grow,Belronneedsanexperienced,highlytrainedtechnicianteamwith the right piece of quality glass at the right timeandplace,foreveryjob.

Failure to do this would impact the customer experienceandruntheriskofbreachingfittingstandards,whichcouldinturnimpactcustomersafety and the reputation of the Belron bu-siness.

Management approach

Thecompanyoffersanomni-channelexperiencetocustomers; theycanmakecontactbyphone,onlineorbyvisitingabranch.

Whenareplacementisrequired,theworkisperformedbyBelron’shighlyskilledtechnicians.TheproductsandtrainingaredesignedtodeliveraservicethatisequivalenttotheOriginalEquipmentManufacturer(OEM)standards.Whenapplicable,technicianswillalsorecalibratethecar’sAdvancedDriverAssistanceSystems(ADAS),whichisparamounttoensuringthesafetyofcustomersontheroad.Furthermore,theRepairFirststrategysavescustomersbothtimeandmoney.

Belronworks in partnershipwith the insurance companies to provide a seamless service for the motoristbymakingthevehicleinsuranceclaimonthemotorists’behalf.

Itconstantlyreviewsoperationalqualityandmonitorshowcustomersfeelabouttheservicetheyreceive,usingthistodriveanevenbetterservice.Thecompanycommitstorespondingpositivelyandpromptlytocustomerclaims,enquiriesandcomplaintsmadeingoodfaith.

Toregularlymeasurecustomersatisfactionacrosseachofitsbusinesses,Belronaskscustomerstorateonascaleofonetoten,“Howlikelyareyoutorecommendustoacolleagueorfriend?”(NetPromoterScore).Thisregularfeedbackscoreandverbatimcommentsenablesthecompanytomain-tainandimproveitshighstandardofcustomerservice.

KeyindicatorsBelronconsistentlyachievesaglobalscoreofover80(anNPSscoreofover70isconsideredworldclass)despitetheriseinthenumberofcustomersserved:

2018:17.8mconsumers-NPS82.82017:16.5mconsumers-NPS83.12016:15.4mconsumers-NPS82.6


Abreakthroughduring2018wastheability torecognisecustomers furtherupstreamontheir in-dividualservice journeysandthentrackthemastheymovebetweenchannels.Thisprovidesthecapabilitytoidentifyandaddresspainpointsnotpreviouslyunderstood,therebyputtingBelroninabetterplacetoconvertmorejobsandtodosomoreeffectively.

Anewinternalawarenessprogrammewasdevelopedandbegantoberolledoutinthesecondhalfof2018.TheprogrammehighlightstheimportanceofADASandtheneedtoidentifyandcarryoutcalibrationcorrectlyandsafely.

WayforwardBelronwillcontinuallylookatwaysofimprovingthecustomerjourney,movingtowardsitsambitiontobetheworld’sbestdistressserviceprovider.

UNsustainabledevelopmentagenda

Bythequalityofitsservice,Belroncontributestoreducingthenumberofglobaldeathsandinjuriesfromroadtrafficaccidents.

Belroncontributestoachievinghigherlevelsofeconomicproductivitythroughdiversifi-cation,technologicalupgradingandinnovation.

CUSTOMERWELFARE


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In October, the Group People team, whichlooksatwaystoprovidesupportandsharebest practice across the business, held an Engagement Forum, where representativesfrom 16 countries shared best practices andagreedonactionsthatwouldhelpto increaseengagement. The team also introduced a QuarterlyPeopleLeadermeetingforEuropeancountriestoagainsharegoodpracticeanddis-cuss areas where they can work together to makeimprovements.

WayforwardBelronwill continue touse theBPMmeasure with the primary purpose to stimulate discussionandactionsaimedatimprovingtheengagementandwell-beingofBelronpeople.

UNsustainabledevelopmentagendaMore than offering a decentworkenvironment,Belron’saspiration isfor all its employees to feel that it is “thebestplacetheywilleverwork”.Thereby, it also fosters productivebehavior,customerorientationandstrongperformance.

TheUNGlobalCompact:Belron iscommitted to principles 3, 4, 5, 6of theUNGlobal Compact,whichaddress corporate responsibilitiestowardslabour.

Whyitismaterial

Belron employees are at the very core of thebusiness’ quality of service. Therefore, theirwell-being and engagement are paramount,especially if we consider Belron’s purpose to‘solve people’s problems with real care’. Fur-thermore, fostering employees’ well-being isincreasinglyrelevantinattractingandretainingtalenttothebusiness.

Casestudy:celebratingpeopleBelroncelebratedmanyoftheirpeoplethroughthe annual global recognition scheme - theBelron Exceptional People Awards - celebra-ting63outstandingpeopleacrossthebusiness,with individual countries recognising far more peopleacrosstheirownoperations.

Management approach

Belronaspirestoprovidingitspeoplewithaworkingenvironmentthatis“thebestplacetheywilleverwork”.

WhilsteachBelronbusinesshasitsownpoliciesandproceduresinplacewithregardstopeoplema-nagement,thecorecultureismaintainedacrosstheGroup.TheSpiritofBelronisdescribedinfourdimensions:Care,Driven,CollaborativeandGenuine.Thelastattributeencompassesthebusiness’sGuidingPrinciplesofIntegrity,RespectandTrust.

With over 30,000people across the business in different roles, Belron recognises the areas thatcontributetoanemployee’soverallwellbeing:

• feeling valued• recognitionofinnovation• recognitionofexcellentwork• a genuine commitment to training and development • astrong‘givingback’ethos• ethicsandresponsibilityarefundamentaltothebusiness’soperations.

For these areas to bemeaningful for Belron people, the business units havemany programmesinplacethat includetrainingandcareerdevelopment,recognitionprogrammes,flexibleworking, feedbackandcommunityinvolvement.

KeyindicatorsTheBelronPeopleMeasuresurveycontinuestohaveaconsistentresponserateofover50%,whichisimportantasthebusinesswantstohearfromasmanypeopleaspossible.Theaveragescore(outof10)acrossthebusinessyearonyearisasfollows:

• 2018:7.5• 2017:7.8• 2016:7.5

ThereisnocentralBelrontargetinplace,howevereachbusinessdoesagreeitsowntargetscoreatthebeginningofeachyear.

TheEcovadisCSRassessmenttoolratesBelroninthetop16%ofbusinessesinthesameindustry,fortheareaofLabourPractices&HumanRights.Thisthemelooksatthepoliciesinplace,actionstoimplementthepoliciesandtheresultsinthefollowingareas:health&safety,development,training,socialdialogue,benefits,percentageofwomenintopexecutivepositionsandintegrationofsenioremployees.

EMPLOYEEWELL-BEINGANDDEVELOPMENT

Belron®

ExceptionalPeopleAwards

Careforourpeople(Ecovadis)

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Management approach

Belron believes in creating a safe working environmentforitspeopleandcustomers.The business commits to providing everyonewiththecorrecttrainingandskillstofeelconfidentin their role, including stringent safety proce-dures for technicians so that they can deliver thehighesttechnicalstandards.

Belron developed safety standards that areembeddedintheBelronWayofFitting.Thisisthe method, tools, training and assessments developed and implemented across the group by Belron’s technical team. This includes Quality Starts with Safety - an awareness training on the importance of following the correct process when replacing a windscreen and the consequences of not doing so; 1-2-3-Easy - a training programme on how technicians can avoid injury while doingtheir job; and the STOP programme - how technicians should look after Self, Tools, OrganisetheirworkandusetherightProcesses.

In addition, each business is responsible forimplementing the necessary measures to comply with their national requirements andmany businesses have dedicated Health andSafety and/or Internal Audit personnel toaudit their procedures as well as highly-skilled trainerstomonitorandupdatetrainingasneeded.

KeyindicatorEach business is required to report on a monthly basis the number of registered occupationalaccidentsaccordingtotheirlocallegislations.Asawhole,adecline in theworkaccidentshasbeenobservedin2018comparedto2017.Thecompanyiscurrentlylookingintowaystoconsolidatethesefiguresperbusinessintoonecompanyindicator.

Whyitismaterial

The‘Care’attributeisakeycomponentoftheBelronculture.Bypromotinghealthandsafetytrainingandoverall employeewell-being, injuriesandabsenteeismalongwith their associatedcostsandlegalconsequencescanbeavoided,ascandistresstoemployeesandtheirfamilies.

Casestudy:the“BestofBelron”Everytwoyears,eachBelronbusinessholdsafittingcompetitiontocommunicate,demonstrateandreinforce standardsof safety,qualityandcustomer service,aswell as recognisingand rewardingthebesttechnicians.Thetoptechnicianfromeachcountrythencompetesataninternationalfinalwherethewinneriscrownedthe‘BestofBelron’.InJune2018,30technicianscompetedforthetitleinFrankfurt,GermanywithRickBeasleyofSafelitewinning,makingitaback-to-backwinfortheUSA.


TheBelronTechnicalteamhasbeenworkingtodevelopagroup-wideexternalcertificationoftheBelrontrainingprogrammesbytheInstituteoftheMotorIndustry.Thiswillstarttobeimplementedin2019,withtheaccreditationoftheBelronWayofFittingandofthecentralBelronTrainingTeam.Thiswillensurethattheinternaltrainingprogrammesretaintheirstatusasanindustrybenchmarkforwindscreentechnicians.

WayforwardSafetytrainingcontinuestobemonitoredandchangestoequipmentwillbemadewherenecessary.

UNsustainabledevelopmentagendaThrough respectingstandardsandsettingambitiousprogrammesaimedat increasingemployeesafety,Belroncontributestopromotinglabourrightsandtoensuringasafeandsecureworkingenvironmentforallitsstaff.

EMPLOYEESAFETY


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Management approach

Belron is committed to making a meaningfulimpactonsociety,which iswhy itsbusinessesand people across the world choose their own community initiatives and organisationsto support. Eachbusiness sets itsown ‘GivingBack’agendaandthroughthisapproach,seesa greater sense of personal involvement and achievement amongst its employees Support is provided in many ways including financial donations,volunteeringtime,sharingresourcesorparticipatinginsportingevents,allofwhichhelptoimprovestaffwell-being.

KeyindicatorsTotalfundraising:

AfrikaTikkun2018EUR1.2million2017EUR1.2million

Localgiving2018EUR3.45million2017EUR3.25million


The Spirit of Belron Challenge - which raisesfundsforBelron’sglobalcharitypartnerAfrikaTikkun-hasbeenrunningfor17years,duringwhichtime it raisedoverEUR10million.Thishas had a huge impact on the lives of thousands ofyoungSouthAfricansaroundJohannesburgandCape Townwhohavebeen supportedbythecharity’s‘cradletocareer’model.

In 2018 over 2,200 Belron people, their families and friends, and business partnersswam, cycled and ran in the torrential rain -trulyembracingtheBelron‘spirit’.

WayforwardBelronanditsbusinesseswillcontinuetolookathowtheycanhaveapositiveimpactonthecommunities inwhich theyoperateaswellasprovidingcontinuedsupportforAfrikaTikkun.


Through the Belron/Afrika Tikkunpartnership the charity is able tosupport over 17,000 beneficiariesacross many programmes in their ‘cradletocareer’model.

Whyitismaterial

BelronbelievesithasaresponsibilitytogivebacktothecommunitieswhereitoperatesandinSouthAfrica,wheretherootsofthebusinesslie.

‘GivingBack’ isakeyaspectofBelronculture,demonstrating the ‘Care’attributeof theSpiritofBelron.

Byinvolvingthepassionandenergyofitspeople,theseactivitieshaveapositiveimpactnotonlyonthecommunitieswherethebusinessoperates,butalsoonstaffengagement.

Casestudy:visitingAfrikaTikkun

InNovember,membersoftheBelronInternationalteamwhoorganisetheSpiritofBelronChallengevisitedAfrikaTikkun’sCommunityCentresofExcellenceinJohannesburgandCapeTowntoseetheimpactofthefundraisingefforts.TheymettheAfrikaTikkunstaffwhodelivertheprogrammesandchattedwithmanyof theyoungbeneficiaries.Theyalsoassisted thosewithdisabilitiesbydoinggardening, cooking, reading stories andmuchmore. A highlightwas visiting the Belron TrainingCentrethatopened in2017,offeringprofessionaland lifeskills trainingforyoungpeopleastheytransitionfromschooltoemployment.

COMMUNITYENGAGEMENT

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Whyitismaterial

Human rights are a fundamental pillar of ethics andtheBelronGuidingPrinciplessupportthis.The company has established clear standardsforitselfandexpectssimilarstandardsfromitspartners.

Abreachof these standardsnotonly impactsthoseinvolvedbuttheadversepublicitycouldalsohaveadetrimental impactonabrandorbrands.

Keyindicators- Belron is in the top 16% of all businesses

assessed by Ecovadis, with a score of 61.7for labour practices and human rights,which cover respect for human rights within the workplace, employee well-being and employeehealthandsafety.

- Belronregistered8OriginalIncidentReportsthroughitscentralSpeakUpline.

Management approach

HumanrightsareaddressedinBelron’sethicspolicyandGuidingPrinciplesaswellasthroughtheprogrammeinplacetoassesssuppliers.Belronpeopletreateachotherwithrespectandensurethattheiractivitiesdonotcontributedirectlyorindirectlytohumanrightsabuses.ThebusinessadherestoandpromotesclearethicalstandardsforitselfandexpectssimilarstandardsfromallthirdpartieswhoworkwithBelronoronitsbehalf.

Thecompany’sGuidingPrinciplescommittopromotingacultureofrespectandequalopportunityinwhichindividualsuccessdependssolelyonastaffmember’spersonalabilityandcontribution.Italsocommitstopromotinganopenandfairrecruitmentprocess,hiringandpromotingpeopleonthebasisoftheirabilityforaroleandtheirappreciation,respectandalignmentwiththeBelronculture.

Belronoutlawstheuseofchildlabourinanyform.Itdoesnotemployanyonebelowtheageof16orthelocallegalminimumemploymentageshouldthisbedifferentinacountryitoperatesin.Itwillnotusesupplierswhousechildlabourinanymanner.Allofitsemployees,contractorsandsuppliers’workingconditionsarerequiredtobecompliantwithnationallegislationandincaseswherethisisdeemedinsufficient,withtherelevantInternationalLabourOrganisationStandards.Innoinstancewillinhumanetreatmentofitspeopleorthoseinitssupplychainbeacceptable,includinganyformofforcedlabour,physicalpunishmentorotherabuse.

In2018,BelronInternationalandBelronUKonceagainpublishedtheirslaveryandhumantraffickingstatements inresponsetotheUKModernSlaveryAct.Thesestatementssetouttheapproachtoaddressingtheriskaswellastheduediligenceprocess.

ThroughitsGuidingPrinciplesanditsCSRbenchmarkingprogramme,BelronhassystemsinplacetoensurethattheArticlesoftheUnitedNationsUniversalDeclarationofHumanRightsareassessed,prioritisedandimplementedastheyapplytoitssphereofinfluence.

WhilsttheapproachtotheCodeofEthicswasdecentralised,BelronretainsthecentrallyfacilitatedSpeakUplinethroughathird-partyprovider,Expolink.Thecommunicationbestpracticesharedwiththebusinessesemphasizedtheimportanceofencouragingandsupportingpeopletospeakupwithanyethical concerns theymayhave.WhileBelronencourages the raisingof concernswithin thelocalcountry,theSpeakUplineisprovidedasanadditionalchanneltoraiseconcernsconfidentially.


Belron makes sure that individual rights are respected throughout the organisation withinitssphereofinfluence.

Belroniscommittedtoprinciples1and2ofUNGlobalCompact,whichaddresscorpo-rateresponsibilitieswithregardtohumanrights.


Careforourpeople(Ecovadis)


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Management approach

TheBelronGuidingPrinciplesareinplaceandupheld toensure thatoffences suchasbribe-ryandcorruptionarenottoleratedwithinthebusiness. Anti-bribery and corruption is oneareaofcompliancethattheGroupLegalteampromotes throughout the business. The ap-proachisbusiness-unitandmarket-specificandtherefore the policies and procedures adopted dependonanumberof factors, including therelevant risk and local rules in each businessunit country. In higher-risk jurisdictions,morestringent measures are put in place to help preventbriberyandcorruption.

The Legal team provides training and awareness sessions to all businesses on anti-corruptionlawandanti-corruptionpolicies to ensure that each business continues to compete fairly and in compliance will all applicableanti-briberylaws.

UNsustainabledevelopmentagendaBelron contributes to reducingcorruption and bribery in all theirforms.

Belroniscommittedtoprinciple10of the UN Global Compact, whichaddresses corporate responsibili-tiesinthefightagainstcorruption.

Whyitismaterial

Belron’sGuidingPrinciplesareexplicit: itwill not tolerateany formorattemptsof corruptionor briberyeithertowardsorbyitspeopleorpartnersregardlessoflocalcustomsandbusinesspractices.

A breach of this could seriously damage the reputation of the business and result in legal consequences.

KeyindicatorIntheFairBusinessPracticesarea,Belron’save-ragebenchmarkingassessmentresultsshowthatit is in thetop5%ofallbusinessesassessedbyEcovadis. For this area of the assessment, thebusinesses need to provide information abouttheir policies, actions and results in relation toanti-bribery and corruption, conflict of interest,fraud,money laundering,anti-competitiveprac-tices, truthfulness ofmarketing and advertisingmessagesaswellasdataprotectionandprivacy.

ETHICALPRINCIPLESINOTOLERANCEFORBRIBERYANDCORRUPTION

CareforourBusinessethics(Ecovadis)

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4.Moleskine

4.1.BUSINESSDESCRIPTIONMoleskineisapremiumaspirationallifestylebrandwithglobalreach.Itissynonymouswithculture,travel,memory,imaginationandpersonalidentity.Asymbolofcontemporarynomadism,itsproductrangeencompassesnotebooks,diaries,journals,bags,writinginstruments,readingaccessoriesandhybridproductsthatmigratecontentfrompapertodigitaldevicesandviceversa.Moleskinehasitsfingersonthepulseofcontemporarycreativityandispresentacrossanetworkofwebsites,blogs,onlinegroupsandvirtualarchives,notleastwithinthebrand’sownonlinecommunity,myMoleskine.

Moleskineisacreativecompanyenjoyingsteadygrowth.Ithasabout490employeesandavastnetworkofpartnersandconsultants.Thoughheadquar-teredinMilan,Italy,theGroupalsohasMoleskineAmerica,basedinNewYork,andMoleskineAsiainHongKong.

TheGroupdesignsandsellsitsproductsthroughamultichanneldistributionplatforminmorethan115countries.Theproductionitselfisoutsourcedtopartnersuppliers.

4.2.OURAPPROACHTOSUSTAINABILITY

Withamissionstatementdedicatedtosupporting our users in expanding knowledge, creativity and individual expression,thequestionofsustainabilityhasalwaysbeenattheheartofMoleskine’sconcerns.

Moleskine’smostvaluablecreativecapital isofcourse itsownpeople, forwhomitaimstoprovidea fairandenrichingworkenvironment. In2019, Moleskine’sPeopleStrategywillfocusprimarilyonreconnectingandengagingstaffwiththecompanypurpose.Topursuethisobjective,theExecutiveTeamhasidentifiedthecorporatecultureastheprimemotorforembracingandmanifestingthecompany’spurposeineverydaylife.Thisyearwillthere-foreseenumerousinitiativesdesignedtoenroltheentireGroupintoembodyingthecoreculturalvaluesthatareessentialto“leadingtheMoleskineway”.

Consistentwiththismission,thenon-profitMoleskineFoundationwaslaunchedin2017.TheFoundation–whichisfullyalignedwiththevaluesandbeliefsofthecompany–fosterscreativityforsocialchangethroughanumberofeducationalinitiatives,withafocusoncommunitiesaffectedbyculturalandsocialdeprivation.

Thecompanyisalsoawarethatitsproductsusenaturalresources.Itthereforeseekstobalanceeconomicbenefitandenvironmentalprotectioninitsactivities,developingthemwithrespectforcurrentenvironmentalregulationswhilebearinginmindtherightsoffuturegenerations.Asthecompanyoperatesprimarilyasadistributor,mostofitsenvironmentalfootprintcomesfromtheoperationsofitssuppliers.Itthereforeensuresthatitsvaluesarerespectedthroughoutthesupplychain.

4.3.MATERIALASPECTS:

• Environmental impact of product design• Sourcing of materials and natural resources• EnergyefficiencyandCO2 emissions• Social and ethical supply chain• Innovation• Employeewell-beinganddevelopment• Community engagement• Ethical principles o Respect for human rights o Zerotoleranceforcorruptionandbribery o Inclusion and Diversity


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Whyitismaterial

Moleskine must exercise responsibility whenchoosing thematerials it uses in its products,since such choices will inevitably impact theworld’s resources. Even though Moleskinedoesnotproduceitsproducts,itdesignsthemand initiates their production. It ensures the resourcesaresourcedresponsiblywithrespectfortheenvironment.

Theuseofchemicalscanalsoaffectthehealthofendconsumers.Thiscanrepresentariskforthe brand’s good reputation as well as costsassociated with the non-compliance with standardsandregulations.

Management approach and what was achieved in 2018

One of Moleskine’s priorities is to find a balance between ensuring high product qualityand using sustainable materials to make those products. Moleskine is aware of its responsi-bility to ensure the resources it uses are sourced with respect for the environment. Themain material used is paper. Paper is a sustainable raw material when sourced responsibly. Givencurrentdeforestationconcerns,Moleskine’spolicy is toensure that thepaperusedcomesfromsustainably-managedsources.Hence,allof itspaperproductsmustmeettheFSCstandard.Moleskinealsoensuresthatthechemicalsusedintheproductionprocessbyitssupplierscomplytoregulationsanddonotimpacthealthandtheenvironment.Tothisend,allitspaperisacid-freeandECF(elementarychlorinefree).Also,allproductsandmaterialscomplytomajorinternationalregulationssuchasREACHandProposition65.

Keyindicators- 100% of Moleskine’s paper products come from responsibly-managed forests that provide

environmental,socialandeconomicbenefits.- 100%ofMoleskine’spaperproductsareacid-freeandECF.-AllMoleskineproductsinthe2018cataloguearecompliantwithactiveregulationsonchemicals

anddonotcontainanySVHCs(SubstancesofVeryHighConcern).WayforwardMoleskine will continue applying the same high standards to all materials used to produce its products (paper, cardboard, polypropylene, polyurethane, polyester, nylon, fabrics and textiles, metals,ABSplastic,EVArubber,realleather).UNsustainabledevelopmentagenda

By ensuring that all its paper products come from responsibly- managed forest, Moleskine contributes to SDG15whichaims topromote the implementationof sus- tainablemanagementofalltypesofforest,haltdeforestation,restoredegradedforestsandsubstantiallyincreaseafforestationandreforestationglobally.

ThecompanyalsocontributestoSDG12as,byrespectingtheabove-mentionedregula-tions,Moleskineaimstoreducetheimpactofthematerialsitusesontheenvironmentandhumanhealth.

Management approach

Moleskine takes environmental criteria intoaccountwhendesigningnewproducts.Findingthe right balance between quality and mini- mizingtheenvironmentalimpactisasignificantchallenge. In Moleskine’s sustainable productdevelopmentprocess, a significantareaof fo-cus is increasing the re-usabilityofpackaging.Twoexamplesare:

• The Notebook Paperbands carry B-side graphics that turn it from paper waste into anobjectorpapertooltobekeptandused;

• The Cardboard boxes of notebook & penbundlescanbeusedasphotoframes.

Keyindicator93%of paper products in the 2018 cataloguehaveareusablepaperband.

WayforwardIn2019thecompanywillcontinueworkingonre-usablepackaginginordertoreduceitsenvi-ronmentalimpact.

UNsustainabledevelopmentagendaMoleskineaimstocontributetoreducingwastegenerationthroughprevention,reduction,recyclingandreuse.

Whyitismaterial

Moleskine’sbusinessmodelisbasedontheconceptionandcreationofconsumergoods.Therefore, a substantial part of the environmental impact stems from the design andmanufacture of new products.Takingenvironmentalcriteriaintoaccountandconsideringtheproducts’full lifecycleatthe design stage is crucial tominimizingwaste and increasing the recyclability ofmaterials. This perspectivegoesbeyondtheproducttoincludethepackaging.

Failure to complywithenvironmental standardsand regulations can lead toadditional costsandpotentiallyharmthecompany’sreputation.

ButadaptingtothegrowingdemandofclientstoreducetheenvironmentalfootprintoftheproductstheyareusingalsocreatesagreatbusinessopportunityforMoleskine.

SnowWhiteLimitedEditionNotebooksPaperbandB-side.

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Whatweachievedin2018

In linewithMoleskine’sresolutionto increasethe use of renewable energy, 60 solar panelscovering a total of 97,50 squaremeterswereinstalledin2018ontheroofoftheMilanhead-quarters.

Moleskine also reached several agreementswithMilan’s public transport operator (ATM),including favourable conditions forMoleskineemployeeswhobuyseasontickets.

WayforwardSolar panel in Milan HQ will be activated in2019.Moleskinewillalsoexplorerelevantandmeaningful ways to assessMoleskine’s globalenvironmentalimpact.

Whyitismaterial

Climatechangeisoneofthebiggestchallengefacing society. Moleskine has a direct and indirect environmental impact, which resultsrespectively from its ownoperations (productdesignanddistribution)andfromtheactivitiesofitssupplychain(productmanufacturing).

Whyitismaterial

MostofMoleskine’sproducts are suppliedbyproducers located in China, Vietnam, India, PakistanandEurope.

Since Moleskine initiates the production pro-cessat itssuppliers, itensuresthesesuppliersrespecttheexistingsocialandethicalstandards.

Failure by suppliers to comply with stan-dardsofethicalconductcouldbereflectedon Moleskine’sreputation.

Keyindicators- In 2018, more than 99% of purchases (in

value terms) were made from SA8000- certifiedvendorsinChina,India,Vietnamand Pakistan.

- 68%of Suppliers of goods having acceptedthe Code of Ethics

Management approach

Moleskinetakesstepstoshrinkitsown–direct-environmentalfootprintbyimprovingtheen-ergyefficiencyof itsofficesandbypromotingsustainablemobilityforitsemployees.In2019thecompanyhasstartedtoreflectonwaystoassessMoleskine’s global – indirect - environ-mentalimpact.

Keyindicator15,000kWhannualestimatedrenewableelec-tricityproductionstartingfromtheactivationofthesolarpanelsinMilan.

Management approach

Moleskinehasprocessesinplacetoensuretheirsuppliers’commitmenttosocialwell-being.

Moleskineasksitsvendorstocomplywiththecompany’sCodeofEthics,whichaimstoreaffirmtheGroup’sdeep-seatedcommitmenttomeetingthehigheststandardsoflegalandethicalconductinitscommercialdealings.

Next to this,Moleskine’spurchasingconditions requiresuppliers located in India,China,Vietnamand Pakistan to guarantee that every stage of their production chain complieswith the SA8000 International Responsibility Standard. This standard applies to all working conditions and coverssafety,hygiene,under-ageworkersandnon-voluntarywork(exploitation),thelegitimacyofemploy-mentcontractsandtheenvironment.Thecompanyverifieswhethersuppliersarecertifiedduringthevendorselectionprocess.Moleskineaskscompaniesthatarenotcertifiedtobeginthecertifi- cationprocessandmonitorstheirprogress.

WayforwardBytheendof2019Moleskinewantstoensurethatgeneralpurchaseconditionsareimplementedbyallmainsuppliersselectedin2018.

UNsustainabledevelopmentagendaMoleskine’sprocurementpolicycontributestoSDG8,whichaimstoprotectlabourrightsandtopromotesafeandsecureworkingenvironmentsforallworkers.

ENERGYEFFICIENCYANDCO2EMISSIONS

SOCIALANDETHICALSUPPLYCHAIN

UNsustainabledevelopmentagendaByimplementingclimatechangemeasures,MoleskinecontributestoSDG13, whichinvolvestakingactiontocombatclimatechangeanditseffects.


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In 2018, the Digital Development and R&Ddepartments sought to identify solutions tobridge the analogue-digital continuum, crea-ting a connection between digital and paperproducts.Examplesofkeyprojectsare:

- A start-up incubator which forms part of the Open Innovation Program: Moleskine pro-vides office and space onboard training tothetwowinnersofitsOpenInnovationPro-gramme.

- Moleskine+ Actions, an app providingchecklists and schedules to help users to get thingsdone.

WayforwardMoleskinewillfocusonconsumers,deepeningitsunderstandingofhowMoleskinecanprovi-demeaningfulinnovation.

UNsustainabledevelopmentagendaBy constantly innovating with thelaunch of new original products (including its M+ collection), Moleskine contributes to SDG 8,which aims to achieve higher levels of economic productivity throughdiversification, technological up- gradingandinnovation.

employeestoworkremotely, inaccordancewithcorporateregulations,toimprovework-life balance, individual performance and satisfaction.

• Moleskinealso launchedseveral learning&developmentinitiatives:

- an Executive Masters on Innovation and DesignManagement, with theMIP Univer-sityinMilan;

- Part-timecollaborationandco-teachingwithMBAInternationalMIP;

- Retail Experience Training Lab for EMEAStoreManagers;

- Individualcoachingandexternalworkshopson Leadership and Personal Developmentseminars;

- Technical training to enhance basic skills inlanguagesandITsystems/tools.

WayforwardIn2019,Moleskinewillproceedwithagroup-wide roll-out of its corporate values – called“Pillars”–thatwereidentifiedin2018.

UNsustainabledevelopmentagendaMoleskineiscommittedtothede-velopment of its employees and wants to contribute to creating adecentworkingenvironment.

Whyitismaterial

Strong employee engagement with the corpo-rate cultureandgoals, and staff retentionarecrucialtothelong-termsuccessofthebusiness.

StafftrainingatMoleskine

Management approach

Since 2018,Moleskine took an integrated ap-proachunderthe“TotalRewardsSystem”.TheTRS implies that investment in people is not only related to monetary status (basic salary and variable incentive bonus), but is also related to a more general investment in the

corporate well-being of staff (workplace,learning, engagement). In terms of learning,Moleskine provides its employees with pro-fessional learning, personal development pro-grammes and technical training. Moleskine isalso committed to using internal job rotationbeforehiringexternalcandidates.

InQ12018Moleskinerantwoworld-widecli-matesurveyswith itspeople,bothqualitativeand quantitative. The purpose of the surveyswastoletpeoplefreelyexpressontheirsatis-faction and trust toward the company and toreceive key feedbacks on the improvementareas.

Keyindicators- In 2018 Moleskine dedicated more than

600hourstostafftraininganddevelopment,involvingabout200peopleacrosstheGroup.Inaddition,about300hoursweregiven toexecutivedevelopmentinitiatives.

- 80%ofMoleskinepeopleparticipatedinthesatisfactionsurveygivingascoreabovetheaverage(>50%)


• In 2018,Moleskine launched a SmartWor-king policy on a global scale, which allows

Whyitismaterial

Moleskine caters for creative consumers who are open to new ideas and ways of increasingproductivity/self-expression.AmongMoleskine’s target audiences are digitally- connected professionals, knowledge workersand students who are used to the convenience ofdigitaltechnologybutwhostillenjoycreatingplansanddevelopingideasonpaperfirst.

By delivering meaningful and innovative products, services and business practices, Moleskine has the opportunity to answer animportantneedofanever-growingaudience.

The Pen+ Ellipse seamlessly combines the everyday experienceofwritingandcreatingbyhandwiththedigitalworld.

Management approach

Thecompanydedicatessignificantenergytoidentifyingareasforinnovationacrosseveryproductcategory,whilealso seekingways to innovate internalprocesses, thebusinessmodelandoverallcorporateculture.

Inparticular,Moleskine’sDigitalDevelopmentandR&Ddepartmentsactivelyseektointerceptemer-gingtrendsandmindstylechanges.

KeyindicatorDigitalInnovationcellspentcircaEUR 500,000in2018.

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Whyitismaterial

It ispartofMoleskine’sDNAtosustaincreati-vityandcriticalthinkinginthecommunity.

Moleskine believes that community enga-gement can create opportunities to engage creativepeople.

Whyitismaterial

Moleskineiscommittedtomeetingthehighest standards of legal and ethical conduct in its employee management and commercial dealings. Non-compliance with standards and regulations can bring costs and reputationaldamages.

Keyindicators- 92.1% value of goods purchased in 2018

come from suppliers that have signed the Code of ethics and agreed to carry out their operationsaccordingly.

- In 2018 no human right breaches were registeredbytheSupervisoryBoard.


Among initiatives in 2018 aimed at sustaining creativity within the creative audience, Moleskine partnered with a number ofhigh-profileinstitutionsaroundtheworldsuchastheNationalGeographicandtheHongKongFilmFestival.

In its triennial 2018-2020 business plan, Moleskinehasapprovedtheyearlydesignationofa sizeablecontribution (1%ofEBITDAeachyear,orEUR 500,000,whicheverishigher)thatwill cover the structural costs of the Founda-tion and allow it to have a sustainable, long-termvision.Henceforth,100%oftheresourcesreceivedby theFoundation cangodirectly tocreatingapositivesocialimpact.

Wayforward

The10yearsofsharedvalueandexpertisehaveallowed Moleskine and the Moleskine Foun- dationtodevelopanewinnovativepartnershipmodel of social engagement that brings to-gether a non-profit organisation and a bu-sinesstocreateamoresignificantsocialimpacton a larger scale. The Moleskine company is committedtocollaboratingwiththeMoleskineFoundation by putting its network, its peopleand its infrastructure at the disposal of the Foundation.

UNsustainabledevelopmentagendaThrough the Moleskine Foun- dation,Moleskine contributes toSDG4,whichaimstoincreasethenumberofyouthandadultswith

relevantskills, includingtechnicalandvocatio-nal skills, thatwill create decent employmentopportunitiesandencourageentrepreneurship.

Management approach

Moleskine has a twofold approach to communityengagement:

- sustaining creativity within the creative audience(MoleskineHub)

A number of activities aim to nurture thebrand’s close relationshipwith its community.This involves curated events that take place in itsphysicalanddigitalspaces.ThroughcontentplatformssuchastheMoleskineCaféandFOLDMagazine, the company invites high-profileauthors and emerging talents to share their stories,inturninspiringtheaudienceandele-vatingthebrand.

- promotingeducationandcriticalthinkingincommunitiesaffectedbyculturalandsocialdeprivation(MoleskineFoundation).

TheMoleskineFoundationisanon-profitorga-nisation that provides young people with un-conventionaleducationaltoolsandexperiencesthathelpfostercriticalthinking,creativityandlife-longlearning,withafocusoncommunitiesaffectedbyculturalandsocialdeprivation.

The company has recently strengthened its re-lationshipwiththeMoleskineFoundation inajointmissiontocreateco-curatedcultural for-mats that leverage creativity as an engine forpositivesocialchange.

Keyindicators- 10eventsorganised intheMoleskineCafés

inMilan,HamburgandBeijing.- EUR 500,000 were contributed to the

MoleskineFoundationin2018.


The legal and ethical standards thatMoleskine adheres to are described in the company’s CodeofEthics,adopted in2013.AllofMoleskine’semployeesmustaccept theCodewhen joining the company,asmustallvendorswhosupplyMoleskinewithfinishedproducts.

Thecompanyconsidersunacceptableanytypeofviolence,harassmentorundesirableconductthatviolatesthedignityofaperson.Allthosewhoobserveorarethevictimofanyformofharassment(sexualorlinkedtopersonal,culturalorreligiousdiversity)areaskedtoreportthistotherelevantmanagersortotheSupervisoryBoard.

Thecompanyaims topropagateand reinforcea safetyculturebydevelopingawarenessof risks,anddevelopingknowledgeof,andcompliancewith,currentpreventionandprotectionlegislation,promotingresponsiblebehaviouronthepartofallworkers.Noemployeeorcontractormayexposeotherstorisksanddangersthatmightcauseharmtotheirhealthorphysicalsafety,andeachworkerisresponsibleforandmustacttoensureeffectivemanagementofworkplacehealthandsafety.

Asmentionedabove,MoleskinerequiresitssupplierstoguaranteethateverystageoftheirchainofproductioncomplieswiththeSA8000InternationalSocialResponsibilityStandard(whichcovers,amongstotherpoints,workingconditions,under-ageworkersandnon-voluntarywork).

UNsustainabledevelopmentagendaMoleskinemakessurethatindividualrightsarerespectedthroughouttheorganisation.

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Whyitismaterial

Contact with public authorities must only behandled by individuals expressly authorisedforthistaskandareguidedbytheneedforthe utmosthonestyandtransparency.Anyformsofattemptedoractualcorruptionandbribescanrepresenta reputational riskand leadto legalfines.

KeyindicatorIn2018nocasesofcorruptionorbriberywereregisteredbytheSupervisoryBoard.

Whyitismaterial

Moleskine promotes diversity, rejects allforms of discrimination and applies the same standard of treatment toward each employee regardless of their religion, nationality, origin,gender or beliefs. Any episode of discrimina-tionwouldputMoleskine’s reputationat risk.Furthermore, a lack of diversity within the organisationwould reduce thebenefit for thebusinessofmixingdifferentgenders,mindsets,culturalandprofessionalbackgrounds.

KeyindicatorInMoleskine’sworkingenvironment65.8%ofemployees are women, more than 25 natio- nalitiesare representedand47.5%of the topandmiddlemanagementarewomen.


In2013,Moleskine implementedthe ItalianLegislativeDecree231/2001byadoptingtheOrgani- zational andControlModel aimedatpreventingbriberyand the corruptionofpublic authorities and private entities. It also complies with the Italian Entrepreneurial Association Guidelines (ConfindustriaGuidelines).ASupervisoryBoardoverseestheefficiencyoftheModelandmustbeinformedofanypossibleviolation.TheSupervisoryBoardbringstogetherMoleskine’sInternalAuditManagerandtwoexternaladvisorsappointedbytheBoardofDirectors.Itreportstwiceayeartothelatter.

UNsustainabledevelopmentagendaMoleskinecontributestoglobaleffortstocountercorruptionandbribery inthecorporatesector.


Moleskine recognises the importance of its employees as one of the fundamental factors in achievingcorporateobjectives,andadoptsproceduresandtechniquesforrecruiting,development,evaluationandtrainingaimedatprovidingequalopportunitieswithoutdiscriminationonthebasisofgender,age,sexualorientation,religiousbeliefsoranyotherfactor.

Staffarerecruitedonthebasisoftheirexperience,theirattitudesandtheirskills.Recruitmentandinternalpromotionsarebasedexclusivelyonthecorrespondencebetweenexpectedandrequiredprofiles.

UNsustainabledevelopmentagendaMoleskinecontributestoSDG16,whichaims,amongothertargets,topromoteandenforcenon-discriminatorylawsandpoliciesforsustainabledevelopment

ETHICALPRINCIPLESIZEROTOLERANCEFORCORRUPTIONANDBRIBERY

ETHICALPRINCIPLESIINCLUSIONANDDIVERSITY

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