FUTURE INNOVATION DEVELOPMENT SUSTAINABILITY REPORT 2017 IN ACCORDANCE WITH THE GRI4 STANDARD ENGLISH VERSION
FUTUREINNOVATION
DEVELOPMENTSUSTAINABILITY REPORT 2017
IN ACCORDANCE WITH THE GRI4 STANDARDENGLISH VERSION
Passion, responsibilityand professionalism are the factors
that distinguish us.
We continue to growwith a commitment toa future of innovation
and development. Together.Giampaolo Ferrari
PresidentFranco Moro
Chief Executive Officer
1 LETTER TO THE STAKEHOLDERS 7
2 A SUMMARY OF OUR COMMITMENT 11
3 AN OVERVIEW OF OUR CRITICAL FACTORS 15 3.1 Italian by birth, international by vocation 18 Montecchio 22 Termoli 22 Lonigo 23 3.2 The results of our commitment 24
4 THREE PROACTIVE PRINCIPLES 27 4.1 Health and safety of our people 28 4.2 Quality and safety of our active ingredients and and intermediates 31 4.3 Waste and hazardous materials management 32
5 EXCELLENT, IN EVERY MOLECULE 35 5.1 The catalysts of our success 36 5.2 Continuous loop innovators 38
6 A QUESTION OF CHEMISTRY 39 6.1 Our stakeholders 40 6.2 Our people, a strategic resource for our operation 42
7 A SOLUTION THAT WORKS 49 7.1 Our commitment to the environment 50 7.2 A responsible link 54
8 OUR FORMULA 57 8.1 A note on methodology 58 8.2 GRI Content Index 61
INDEX
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1LETTERTO THE
STAKEHOLDERS
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On the occasion of our sixtieth anniversary, we
are proud to publish this document, the first
formal “Sustainability Report” by F.I.S. It con-
cretely demonstrates how we have managed
to establish some of our company's core val-
ues, once again confirming that “sustainable
enterprise” from a social and environmental
perspective is the principle that guides our
actions.
Respect for the people inside and outside the
company has guided our commitment to be a
positive reference for our employees and oth-
er stakeholders with whom we interact. Over
the last two years, we have hired almost 400
people, passing from an organisation of 880
employees in 2014 to 1285 people in 2016,
many of whom are of local origin. In addition to
these, there are 312 people working in the Lo-
nigo plant, acquired in 2017 to further incre-
ment quality in the years to come by increas-
ing our production capacity and know-how.
We have worked a lot in recent years to ensure
the utmost safety for those who work in F.I.S.,
identifying all risks associated with our opera-
tions, investing in plant improvement and main-
taining intensive training initiatives to make our
plants increasingly safe places. In these years,
we have also improved the structures for per-
sonnel by adapting them to the number of users
and trying to make the company a more pleas-
ant place, for example by doubling the number
of canteen lines and expanding the company
car park. We intend to continue investing in
company welfare to respond in kind to the moti-
vation and passion of our people.
In parallel, we have continued to collaborate
with our strategic suppliers, to spread a cul-
ture of risk prevention for both the environ-
ment and the people working in production.
The company is also a social entity, which lives
in symbiosis with the local community. This
awareness has pushed us to go ahead with
initiatives that benefit the Montecchio and Ter-
moli areas, certain that our economic growth
is linked to that of the surrounding communi-
ties. For this reason, we immediately started to
identify opportunities to extend this attention
to the Lonigo area.
Respect for the environment has induced us
to make significant investments to modernise
and introduce innovation into our Montecchio
and Termoli plants. In this way, we have man-
aged to reduce environmental impact by in-
troducing new solvent and refluent treatment
systems, which have significantly increased
substance reuse for a circular economy.
Our commitment to sustainability is already ex-
tending to our Lonigo plant, which will also be
subject to modernisation in the coming years
to make it's health, safety and environmental
performance even more solid, demonstrating
that this site is at the focus of our strategic
business decisions.
Finally, in the face of a market that is undergo-
ing increasingly rapid and unexpected chang-
es, the motivation to innovate has helped us
meet our customers' demands. Moreover, we
have strengthened our partnerships with uni-
versities to pursue research that has given rise
to real state-of-the-art laboratories.
Responsible management inspired by our
dearest values has run in parallel with
strengthening our economic performance, so
much so that on reaching our 60th year, we
can state with satisfaction that internationally
we are among the leading active ingredient
companies.
The challenge, however, has just begun. Our
company is growing rapidly, and this positive
trend gives us a new drive: to ensure long-last-
ing development, it is essential to stick stead-
fastly to our commitment to sustainability,
above all at this time of strong development.
The “Sustainability Report” serves to affirm, to
ourselves and our stakeholders, the promise
to continue to be a reference company in our
sector, thanks to our respect for the environ-
ment and for all stakeholders involved in our
whole production chain.
As President and CEO, we are proud of the fact
that F.I.S. takes part in building the well-being
of millions of patients worldwide, development
in our territory and the success of our custom-
ers. We must be grateful for these, because
they drive us to improve, to raise our operating
standards and to develop expertise that cre-
ates value for all stakeholders.
A warm thanks goes to Montecchio Council,
Termoli Council and the other local institutions,
which represent the voice of the territory and
with which we talk openly to implement initi-
atives that are useful to the community that
surrounds us. The same gratitude extends to
the Administration of Lonigo, with which we
immediately started a positive and construc-
tive relationship.
We also thank our suppliers, which we ask
every day to guarantee the efficiency and
quality that supports our development strate-
gy. A special thought goes to the charities that
we are honoured to support in various ways,
and that constitute a precious link to the social
dimensions to which we feel we belong.
Finally, we thank you, who work in F.I.S., and
who constantly surprise us with promptness
with which you react to the needs dictated by
market opportunities, for your commitment,
perseverance and flexibility for which we are
well known internationally. Our thanks go to
each of you individually, but also to the unions
with which F.I.S. is proud to have built a fair,
constructive, respectful and communicative
relationship that benefits all involved.
We look to the future with passion, with the
conviction that it holds further rewards and
opportunities for improvement. In the same
way, we are sure that there will be challeng-
es, but we are confident in saying that we will
deal with them with renewed commitment,
strengthened by increasingly high-profile ex-
pertise, working together with our stakehold-
ers for a sustainable development that bene-
fits F.I.S. and all of its interlocutors.
Enjoy the reading,
Giampaolo Ferrari,President
Franco Moro,
Chief Executive Officer
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2A SUMMARY
OF OURCOMMITMENT
10 | SUSTAINABILITY REPORT 2017 SUSTAINABILITY REPORT 2017 | 11
495,000,000OVER 495 MILLION EUROOF TURNOVER AND A NET PROFIT OF 25.3 MILLION
ACQUISITION OF THE LONIGO PLANT, CONSIDERED EXCELLENT AT AN INTERNATIONAL AND ITALIAN LEVEL SINCE THE BEGINNING, INTEGRATING THE PLANT'S 312 EMPLOYEES INTO OUR ORGANISATION
LONIGO
228228 NEW JOBSDURING 2016
4,000,000OVER 4 MILLION EUROINVESTED TO IMPROVESAFETYIN OUR PLANTS
23,000,000OVER 23 MILLION EURO INVESTED IN ENVIRONMENTAL PROTECTION
BESTSUPPLIERWINNING THE“BEST SUPPLIER” PRIZE FROMONE OF OUR MAIN CUSTOMERSFOR THE THIRD YEAR RUNNING
MORE THAN 27,000 HOURSOF TRAINING PROVIDED
27,000
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3AN OVERVIEW
OF OURCRITICAL FACTORS
14 | SUSTAINABILITY REPORT 2017 SUSTAINABILITY REPORT 2017 | 15
THE 10 CRITICAL SUCCESS FACTORSPASSION, INNOVATION, DEVELOPMENT"Passion, accountability and professionalism are characteristics that set us apart. We continue to grow with dedication towards a future of innovation, excellence and development. Together.”
THE 10 CRITICAL SUCCESS FACTORSPASSION, INNOVATION, DEVELOPMENT"Passion, accountability and professionalism are characteristics that set us apart. We continue to grow with dedication towards a future of innovation, excellence and development. Together.”
REPUTATION Enhancing the reputation of F.I.S.
with all of its interlocutors through
the professionalism and expertise
of the people and the excellence of
the results obtained.
MINDSET & FOCUSDeveloping an approach
orientated towards know-how
and focus on achieving goals.
GOVERNANCE Growing to guarantee
dissemination of company
values and its approach
based on expertise and
passion in F.I.S. and the
Holding.
TECHNICAL & OPERATIONS KNOW-HOW Developing and enhancing the
ability of F.I.S. to build unique
solutions, based on distinctive
competencies and oriented to
operational excellence.
COMPETITIVENESS Ensuring high design efficiency,
exploiting the organisation's
collective intelligence.
ASSETS + CAPEXWILLINGNESS& KNOW-HOW Taking on investment
challenges by combining
entrepreneurial courage
with the ability to analyse
our potential.
FLEXIBILITY Maintaining agility, speed and
flexibility, despite a growth in
size and complexity.
QUALITY PROD+ SERVICE KNOW-HOWEnsuring quality and
excellence of products
and services to guarantee
competitiveness and
continuous performance.
INNOVATION Developing the company's
ability to generate and
support innovation to create
value. SIZEGrowing by acquiring and
integrating new abilities
and expertise.
Franco Moro
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3.1ITALIANS BY BIRTH,INTERNATIONAL BY VOCATIONF.I.S. - Fabbrica Italiana Sintetici is a
Venetian company specialized in the man-
ufacture of chemical products for the phar-
maceutical industry. Founded in 1957, F.I.S.
is one of the world’s leading companies in
the Custom Synthesis sector, that is, the
exclusive production of intermediates, ad-
vanced intermediates and active ingredients
for pharmaceutical companies, and generic drugs, thanks to the development and sale
of active ingredients such as tranquillizers,
anxiolytics, antibacterials, anticonvulsants,
anti-inflammatory drugs, diuretics, analge-
sics and cardiovascular drugs.
In addition, our company provides a range of
integrated customer services, including re-
search and development activities, chemical
synthesis processes and growth strategies
to ensure a large scale production.
F.I.S. S.p.A. is controlled by a holding - Holding
F.I.S. - which also consists of other companies:
• Delmar, a Canadian company that man-
ufactures intermediates and active ingre-
dients
• F.I.S. - North America, a company that
operates as a commercial agent for F.I.S.
• Areta, an Italian biotechnology company
involved in developing and manufacturing
innovative biological drugs, in which F.I.S.
is a shareholder
• PHF, a Swiss company that develops new
generic drugs and markets some F.I.S.
products in the American market
Our company has a Representative Office
in China, which supports us in building and
maintaining relationships with raw material
suppliers.
Finally, our production takes place in the
three Italian plants in Montecchio Mag-
giore (Veneto), Termoli (Molise) and Lonigo
(Veneto). The latter was recently acquired
from Zach S.p.A.
CUBA
SLOVAKIA
CUBA
SLOVAKIA
PHF
F.I.S.
ARETA
F.I.S.MONTECCHIOMAGGIORE
F.I.S.LONIGO
F.I.S.TERMOLI
DELMAR
F.I.S.NORTH AMERICAsalesoffice purchasing
office
OUR HISTORY1957Giovanni Ferrari, with sons Antonio,
Gianfranco and Ottavio, founds F.I.S. –
Fabbrica Italiana Sintetici S.p.A., based
on many years of experience obtained
in another pharmaceutical company in
Vicenza. Together with other pioneers
and key people in the company,
the Ferrari family decides from the
start to concentrate the business on
manufacturing active ingredients for
the pharmaceutical industry. In the
same year, they start work to build the
company plant in Alte di Montecchio
Maggiore, near Vicenza.
1958The first laboratories and plants
start production in September 1958.
The company's first product is
chloramphenicol, followed shortly by
nitrofurantoin, a product that is still in
the F.I.S. portfolio today and for which
it is the market leader.
THE '60sF.I.S. quickly becomes the leader in
the benzodiazepine and furanicide
families, and other products including
furosemide. Nitrofurantoin is the
first product to be awarded the Drug
Master File (DMF) of the American
Food and Drug Administration (FDA),
the body that regulates the use and
production of drugs in the USA. In
1964, F.I.S. receives the first FDA
inspection and starts to supply
nitrofurantoin to the US Army.
THE '70sThese years see the growth of the
generic drugs segment. In 1977, for
example, F.I.S. starts to independently
manufacture trimethoxybenzaldehyde,
starting from a Peruvian plant called
Tara. F.I.S. quickly becomes a market
leader for this generic product.
1978However, in 1978, a law is issued to
sanction the patentability of drugs in
Italy, guaranteeing patent protection
for 20 years from the release date.
F.I.S. is forced to suddenly change its
market strategy and decides to enter
the Custom Synthesis market. In these
years, the Montecchio plant grows and
a liquid incinerator furnace and fume
washing columns are built.
THE '80sThe first rewards in the Custom
Synthesis market start to arrive.
Specifically, in 1985, F.I.S. accepts
the challenge of developing a very
demanding synthesis for a prestigious
European pharmaceutical company.
The results are so brilliant that a long-
term partnership is confirmed between
the two players, accompanied by an
exclusive research and production
agreement.
From 1980, the company starts its own
exportation directly to the American
market, thanks to a partnership with a
local distributor.
The Montecchio plant is further
extended: in 1985, a biological plant is
built to treat the process water and in
1988 solid waste incinerator furnace
is installed.
THE '90sThe Custom Synthesis business
consolidates thanks to a wide range of
products and customers. In fact, during
these years, new exclusive agreements
are made with European and Japanese
companies, and the Termoli plant,
specialised in the development
and manufacture of advanced
intermediates, starts operating.
The company also starts to think about
measures to reduce its environmental
impact. In 1997, evaporation towers
are installed at the Montecchio and
Termoli sites. They have an air-cooled
water recycling circuit to reduce
groundwater consumption.
FROM 2000 TO TODAYThese are years of strong investment.
A period of renewed growth follows,
ending with the acquisition of a third
plant at Lonigo in December 2016.
Meanwhile, the commitment of F.I.S.
to environmental protection continues.
In 2001, the company attains the
UNI EN ISO 14001 Environmental
Management System certification for
the Montecchio and Termoli plants,
while in 2009, the Montecchio plant
receives the OHSAS 18001 Health
and Safety System certification. In the
same year, procedures are started for
the issue of Integrated Environmental
Authorisation (AIA) and Environmental
Impact Assessment (VIA) procedure
for the incinerator furnace revamping
project at the Montecchio plant.
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The organisational management structure
allows our company to maintain its family
business status, while ensuring effective
managerial control. However, for sustain-
ability aspects, we rely on a Sustainability
Advisor who reports directly to the CEO. The
management of the three plants is instead
entrusted to the respective Directors. These
Directors share with the CEO the responsi-
bility for proper management of the plant
and ensure compliance of establishments
with rules, standards and quality, health,
hygiene and safety regulations.
In December 2011, the Board of Directors
took the decision to supplement the compa-
ny Code of Ethics by adopting a Corporate
Code on Organisation, Management and
Control, in compliance with the require-
ments of Legislative Decree 231/2001 and
its subsequent amendments and additions.
This Decree introduced to the Italian legal
system the administrative responsibility of
entities, companies, associations and legal
persons in relation to a series of offences,
including some environmental offences
and, for health and safety, offences com-
mitted by individuals whose actions harm
the community for their own benefit or in-
terests.
As we fall under the category of entities
that can incur administrative responsibility,
we have progressively integrated the mod-
el, extending it to other offences covered by
the Decree and have completed it with an
internal sanction system. An external inde-
pendent surveillance body monitors the ap-
plication and operation of the model. It was
established collectively and appointed by
the Board of Directors to conduct periodic
inspections to identify possible inconsisten-
cies and shortcomings.
Our Code of Ethics is the other instrument
that we use to internally express and dis-
seminate the basic principles on which
we intend to base our relationship with all
stakeholders in the company business. This
document is specifically aimed at ensuring
that the entire company organisation con-
stantly behaves with respect for legality,
honesty, integrity, fairness, transparency
and good faith, the trademark features of
F.I.S. All employees and those acting in the
name and on behalf of F.I.S. are required to
know the provisions of the Code and to be-
have accordingly. Anyone can contact the
Guarantor of the Code of Ethics, who is ap-
pointed by the Board of Directors, to report
situations or behaviour that goes against its
content.
The Code of Ethics also explains why pas-
sion, responsibility and professionalism are
our core values.
Passion, in fact, is one of the forces that
moves all of our employees to operate
with excellent quality work, with the desire
to contribute to the company's innova-
tion and economic growth. To encourage
this, we have chosen to direct our efforts
at selecting people who are aligned with
our business values, improving our ability
to collaborate and making communication
more effective at all levels.
Responsibility for us means, first and
foremost, respect for people working in
the company and for the community as a
whole. Therefore, we encourage our em-
ployees to behave in an attentive manner
and to listen to the needs of others.
Professionalism, in turn, lies in the relia-
bility and flexibility that make us worthy
of trust and esteem from our customers.
Quality that we constantly cultivate within
our corporate community to ensure that our
products reach an ever increasing quality
and are always in line with the specific re-
quirements of each customer.
In September 2016, we also signed the
Charter of Principles for Environmental
Sustainability of Confindustria (associa-
tion of Italian industries), of which we are
members. In fact, our company actively
takes part in the activities of Confindustria
Vicenza and Confindustria Molise, and is a
member of other trade associations such
as the Active Pharmaceutical Ingredients
Committee (APIC-CEFIC), the Chemical
Pharmaceutical Generic Association (CPA),
the European Fine Chemicals Group (EF-
CG-CEFIC), the Society of Chemical Man-
ufacturers and Affiliates (SOCMA) and the
Drug, Chemical and Associated Technolo-
gies Association (DCAT).
Our mission is to continue to be an interna-
tional benchmark company in the produc-
tion of active pharmaceutical ingredients
and advanced intermediates for pharma-
ceutical chemistry and fine chemicals.
To do this, we know that we have to con-
tinue to work to earn the trust of our cus-
tomers every day, offering products that are
perfectly in line with their needs. The end
user of our active ingredients is the patient
suffering from a pathology and it is crucial
to always be able to guarantee quality and
safety of use aimed at the therapeutic effi-
cacy and improvement of the quality of life
of the patient and the people around them.
To achieve this ambitious goal, we have a
capillary governance structure that can
meet the company's daily needs by provid-
ing a high degree of flexibility to allow us
to promptly meet our customers' require-
ments.
COMPANY GOVERNANCE
CHAIRMAN OF THE BOARDOF DIRECTORS
Giampaolo Ferrari
CHIEFEXECUTIVE OFFICERS
Giampaolo FerrariAlberto Ferrari
Alessandro Ferrari-
Franco Moro
MONTECCHIOQUALITY
UNIT
MONTECCHIO PLANTDIRECTOR
TERMOLI PLANTDIRECTOR
LONIGO PLANTDIRECTOR
TERMOLIQUALITY
UNIT
LONIGOQUALITY
UNIT
ADMINISTRATIONFINANCE AND
CONTROL DIRECTOR
QUALITY ANDCOMPLIANCE
DIRECTOR
HUMANRESOURCESDIRECTOR
R & DDIRECTOR
COMMERCIALDIRECTOR
HEALTH,SAFETY AND
ENVIRONMENT DIRECTOR
ENGINEERINGDIRECTOR
MANUFACTURINGDIRECTOR
PURCHASINGDIRECTOR
LEAN ENGINEER SUSTAINABILITY ADVISOR
INDUSTRIAL RELATIONS DIRECTOR CEO ASSISTANT
CEO
REGULATORYAFFAIRS
DIRECTOR
QUALITY ASSURANCE DIRECTOR
Departmental reporting levels
Hierarchical reporting levels
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MONTECCHIO PLANTThe Montecchio Plant, which has been
active for more than 50 years, is the first
operational centre of the Group and has
a long history of quality and international
certification.
It has one of the most advanced Research
and Development laboratories in the coun-
try and makes the production process
flexible one of its own trademark features.
In fact, the plant offers every customer a
fully integrated and customised service
and is equipped with a high-technology
pilot plant that ensures high performance
for use in both Custom Synthesis
and Generic drugs. Recently, the plant has
completed the construction of new Spry
Drying and Sterile Production Plants.
Over the last few years, we have tried to
make it an even more comfortable place,
doubling the canteen lines, expanding
parking and starting additional invest-
ments to adapt the plant to the growing
population of the company.
The numbers of theMontecchio Plant
Unit ofmeasurement 2014 2015 2016
Total area m2 95,000
Employees No. 755 919 1,099
Reactor capacity m3 1,675
Certifications: ISO 9001; ISO 14001; OHSAS 18001
The numbersfor the Lonigo plant
Unit ofmeasurement 2014 2015 2016
Total area m2 118,000*
Employees No. 258 264 312
Reactor capacity m3 656
Certifications: ISO 14001; OHSAS 18001
LONIGO PLANTThe Lonigo plant, acquired at the be-
ginning of 2017, was founded between
1975 and 1976, and has been enlarged
in terms of plant and equipment. It has
always been regarded as a point of ex-
cellence in terms of quality, and occupies
312 people, most of whom live in the
neighbouring municipalities of Lonigo,
Montebello and San Bonifacio or in the
province of Verona.
Expansion work is also expected at Lonigo
between 2017 and 2018. It consists of
introducing a new warehouse for raw
materials, intermediates and finished
products, a new distillery for solvent re-
covery and technological restructuring of
Department 3B.
It joined F.I.S. S.p.A. from 1 January 2017
TERMOLI PLANTTermoli has been operating since 1990,
initially only for intermediate production;
In 2009 it became a Pharmaceutical
Workshop, which was then authorised for
the production of Active Ingredients and
in 2012 approved by the US Department
of Health (FDA). In 2016, it obtained per-
mission to build a new plant that, once
completed, should double its production
capacity. The works will be completed
by the end of 2017, and we expect good
returns in terms of employment growth,
given that the plant should employ at least
250 people once the expansion has been
completed, 64 more than today.
This intervention will also generate eco-
nomic incentives for local companies
involved in construction work, which
will employ an average daily workforce
of 30 people, half of which is from the
Termolese area. Lastly, in 2017, 40 m2 of
photovoltaic panels will be installed on the
roof of the plant.
The numbersfor the Termoli plant
Unit ofmeasurement 2014 2015 2016
Total area m2 91,000
Employees No. 125 163 186
Reactor capacity m3 415
Certifications: ISO 9001; ISO 14001; OHSAS 18001
*the total area reaches 260,000 m2 also considering the related areas
Production Laboratories Shipping
Warehouse Offices and Services Waste treatment
Maintenance Local Services
Lonigo Montecchio Termoli
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3.2THE RESULTS OF OUR COMMITMENT
Over the past three years, we have seen
strong economic growth, which has led
to a substantial increase in our economic
value and operating profit.
The economic value generated, which rep-
resents the sum of the value of production
and the financial and extraordinary income,
grew by 79.17% over the three-year peri-
od, from about 277 million euros in 2014
to over 496 million euros in 2016 .
However, the economic value we dis-
tributed to our stakeholders increased
by 75.25% over the same period, from
261.89 to 458.96 million euros. Of this
amount, net of operating costs, in 2016
we distributed 75.32 million euros to
our employees in the form of salaries
and benefits and approximately 189,000
euros were distributed to the community
in the form of gratuities and associative
contributions.
In particular, net income net of dividends
distributed increased by more than 39
times, demonstrating the increased sus-
tainability of our business and our ability
to be market leaders.
Economic valueDistributed in 2016
€ 332,163,000Value distributedTo suppliersof raw materialsand services
€ 75,327,000Value distributedto employees
€ 2,433,000Value distributed to capital providers
€ 26,000,000Dividends distributed
€ 189,000Value distributed to the community
€ 22,853,000 Value distributed to the Public Authorities
*The economic value generated includes investments made during the year
Items Unit of measurement 2014 2015 2016
Generated economic value
Production value K€ 276,420 353,645 495,232
Income from investments K€ - - -
Other financial income K€ 97 47 1,377
Extraordinary income K€ 662 515 -
Total F.I.S. K€ 277,179 354,207 496,609
Distributed economic value
Operating costs
Raw material costs K€ 123,815 186,360 260,009
Service costs K€ 41,651 47,049 60,456
Costs for leased assets K€ 632 860 1,463
Changes in the stock of raw materials K€ 1,838 14,001 9,452
Other management costs (net of taxes) K€ 805 863 783
Extraordinary charges k€ 49 398 -
Value distributed to employees
Personnel costs K€ 56,163 62,808 75,327
Value distributed to capital providers
Interest and other financial charges K€ 1,485 1,782 2,433
Value distributed to the Public Authorities
Current and deferred tax on income K€ 12,000 13,076 22,347
Other management costs (tax value only) K€ 587 527 506
Value available to the holding
Value available to the holding K€ 23,000 26,000 26,000
Value distributed to the community
Donations K€ 16 281 7
Sponsorships K€ - - -
Membership fees K€ 177 209 182
Total F.I.S. K€ 261,893 354,214 458,965
Economic value held
Profit (or loss) for the year (excluding dividends) K€ 644 3,710 25,300
Depreciation / Provisions / Writedowns / Revaluations K€ 20,601 23,743 31,646
Deferred taxes K€ 118 176 81
Total F.I.S. K€ 21,363 27,629 57,027
2014
€ 277,179,000
€ 261,893,000
€ 21,363,000
€ 354,207,000
€ 354,214,000
€ 27,629,000
€ 496,609,000
€ 458,965,000
€ 57,027,000
2015 2016
Generatedeconomic value*
Distributedeconomic value
Withheldeconomic value
*The economic value generated includes investments made during the year
+79%
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GOALS FOR THE NEXT FEW YEARS
To make the company even more
competitive and increase our future
turnover, we are expanding business
in the generic drugs market through
reorganisation of the Marketing Sector,
in both Italy and the USA.
We also believe that improving internal
processes, through the gradual intro-
duction of automation in the manage-
ment of the most consolidated chem-
ical processes, will further strengthen
our competitiveness and profitability.
In this direction, important investments
are made for the acquisition of new
planning management software, for
the control and allocation of costs for
new synthesis processes, for manag-
ing supplier relations, for the manage-
ment of training and skills of our staff.
As people in F.I.S. are considered a
strategic success factor, we are reor-
ganising our personnel development
processes to further enhance the skills
required by their role in the company.
Technological innovation is a success
factor that F.I.S. has always consist-
ently pursued: the creation of the new
Production Department B in Termoli
and the new Quality Control Labora-
tories in Montecchio will lead to inno-
vative solutions and more efficiency
in the management of business pro-
cesses. We plan further investments in
powder loading and unloading systems
(both raw materials and finished prod-
ucts), process parameter control sys-
tems, including online residue solvent
analysis systems, mass analysers and
laser systems for monitoring the size
of dust particles on the finishing lines.
4THREE PROACTIVE
PRINCIPLES
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4.1HEALTH AND SAFETYOF OUR PEOPLEBetween 2009 and 2010, the Montecchio
and Termoli sites were awarded the OHSAS
18001 certification for the health and safe-
ty management system.
Starting with this objective, with the aware-
ness that every employee is the protagonist
in health and safety management, we have
implemented cutting-edge initiatives, such
as the “Operational Excellence” program,
designed to train our staff on safety-re-
lated issues and also to transmit a series
of best practices for suppliers and third
parties. Launched in 2016, the program is
conducted in partnership with the American
company DuPont.
After an initial evaluation phase, full inte-
gration into business processes on the
different production sites of the Group will
go ahead in 2017, involving the employees
in training and coaching activities that will
cover all of the production staff and aim
to spread virtuous behaviour in terms of
Health and Safety while at the same time
increasing the efficiency and flexibility of
staff.
To provide a continuous exchange of infor-
mation on Health, Safety and Environment
issues among all our employees, we have
also set up Health, Safety and Environment
Committees.
These committees do not influence the re-
sponsibilities, roles and objectives of each
department, but provide a platform for the
continuous exchange of ideas, suggestions
and opinions about corporate SSA issues,
open to all employees of the company.
In this way, we ensure that our people has
been informed about the main issues of
sustainability and can have their say to give
the management their ideas and impres-
sions.
At F.I.S., we believe that we should not limit ourselves to a passive approach of respect for our foundation values. As a result, going beyond regulatory obligations, we commit ourselves to proactively seeking new solutions to maximise the health and safety of our employees and protect the environment, ensure compliance with our quality and safety standards and carefully manage hazardous waste and materials resulting from our production in line with the law.
The actions of the Health, Safety and En-
vironment Committees are inspired by the
Health, Safety and Environmental Policies
of F.I.S., which are published by the compa-
ny to guarantee business development that
is, as far as possible, sustainable and com-
patible with the needs of citizens, employ-
ees and the environment that surrounds the
company's operational sites. The policy in-
cludes the company's commitments to pro-
tect these stakeholders, underlining how
health, safety and environmental aspects
are an integral part of each employee's job,
and therefore must be considered when as-
sessing their individual performances.
Our plants also operate with hazardous
substances in quantities that can cause
HSE
COMMITTEE
Staff and
Support Committees
Internal
audit team
Committees
of 2nd level
Committees
of 3rd level
Organisational structure of the Health, Safety and Environment Committees.
We can see a similar trend in the ratio of accident frequency and severity indices, which respectively measure the number of accidents with
respect to the total number of hours worked by all of the employees and the number of days lost due to temporary inability, permanent inability
or death. Both indicators have dropped with respect to 2015, and the number of deaths has remained fixed at 0.
LA-6
Accidents at the Montecchio and Termoli plants (no.)*
2014 2015 2016
Men Women Men Women Men Women
Montecchio 17 0 22 0 18 0
Termoli 4 0 6 0 3 0
Total F.I.S. 21 0 28 0 21 0
*Only accidents that result in a prognosis of greater than 3 days have been counted
Training is accompanied by significant investments in renewing and expanding plant safety systems and devices to reduce impact on the
health and safety of our people and surrounding inhabitants, and to protect the environment from potential harmful effects. In the last year
alone, we have invested approximately 3.7 million Euro in Montecchio and 423,000 Euro in Termoli for this work.
LA-6
Health, Safety and Environmental training time for employees (hours)
2014 2015 2016
Montecchio 12.56 9.40 9.90
Termoli 14.23 14.60 16.35
Total F.I.S. 12.79 10.19 10.87
significant accidents (as defined by the reg-
ulations in force) and are therefore subject
to specific controls by the Competent Au-
thorities. As a result, we identified all pos-
sible risks that could be linked to our op-
erations and adopted preventive measures
to minimise the likelihood of accidents, as
well as periodic checks and a plan to tackle
possible emergencies. In addition, we have
maintained intense training activities for
our employees, including newly recruited
employees: in 2016, the average number
of hours of Health, Safety and Environment
training per employee was 9.90 at Montec-
chio and 16.35 at Termoli.
LA-6
Health, Safety and Environmental investments (Euro)
2014 2015 2016
Montecchio 1,816,900 4,621,600 3,704,900
Termoli 506,147 485,300 423,000
Total F.I.S. 2,323,047 5,106,900 4,127,900
20164,127,900
20142,323,047
20155,106,900
H S E
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The number of days lost due to illness is also substantially low throughout 2016,
with a level of absenteeism of 3.2% in Montecchio and 2.8% in Termoli.
GOALS FOR THE NEXT FEW YEARS
By 2018, we have the intention of
reaching a first phase of completion of
the new department B in Termoli.
This expansion will accompany a
series of technical interventions to
further improve our SSA performance:
specifically, we have planned the in-
stallation of new containment systems
for raw material loads.
This will be complemented by the
completion of horizontal safety mark-
ings in each plant, installation of
smoke sensors inside the electrical
substation and the implementation of a
series of preventive inspections of the
electrical panels using thermal imag-
ing to prevent the risk of fire.
Moreover, by implementing the "Op-
erational Excellence" program, we
intend to gradually reduce the number
of accidents within our plants. The
activities that will be carried out in
2017 include a redefinition of shifts,
roles and tasks within the plants, so as
to obtain a clear and shared outlook of
the responsibilities of all of the people
working for us. This redefinition will be
followed by a training course for staff
at all levels, in which our partner Du-
Pont will be involved. Following this, a
process for analysing the causes of ac-
cidents will be reviewed and improved
to prevent recurrence by implementing
specific improvement measures.
GOALS FOR THE NEXT FEW YEARS
Over the next few years, we aim to implement a series of preventive measures on our equipment to minimise the risk of con-
taminating our products with foreign materials from plants or equipment.
For our customers, the most important aspect is the quality of the active ingredients and intermediates offered by the company, along with supply continuity and punctuality. For this reasons, we take the utmost care in avoiding deviations from the quality standards and the specific requirements of each customer, constantly monitoring the quality of raw materials and implementing preventive measures designed to avoid future problems.
Equal attention is also given to maintain-
ing the utmost product safety, and to the
strict controls on our active ingredients and
intermediate products, to guarantee full
protection of the final users. This is aided
by rigorous compliance with the highest in-
ternational industry standards, which keeps
customer satisfaction high. In 2010, F.I.S.
obtained UNI EN ISO 9001 quality system
certification for the Montecchio and Termoli
plants, with the aim of ensuring maximum
efficiency and effectiveness in making prod-
ucts and delivering the services offered by
the company.
We have also specified these principles in
the Quality Policy and Code of Ethics on
which our Company Mission is based. the
R&D department defines the main critical
quality and safety attributes of the products,
and designs product quality at the process
identification and development level.
Each process is then consolidated to guar-
antee reproducibility during scale-up and
industrialisation. Specifically, the quality pa-
rameters are controlled by Quality Control,
while the process parameters are checked
by the existent automation systems and
recorded in the Process Sheets. The same
applies to process standardisation, which
serves to guarantee the maximum repro-
ducibility of the product quality parameters
monitored through one of the most detailed
and complete distributed control systems
(DCS), developed to meet the highest inter-
national standards.
Each company employee contributes to en-
suring the quality of that part of the product
for which they are responsible, thanks also
to the training received on quality and good
production standards. The role of Quality As-
surance is to guarantee that there are also
the procedural tools to make sure that the
process gives the expected results. More-
over, given the quality commitments and
process requirements imposed by the health
authorities in the destination countries of
our products, there are periodic audits at
our plants to assess compliance with these
requirements.
Over the past three years, thanks to the cap-
illary interventions with which we have im-
proved our internal control and assessment
mechanisms, there have been no cases of
punishable non-compliance and any minor
non-compliance in relation to the Good Man-
ufacturing Standards set out by the National
and Foreign Health Authorities have always
been quickly resolved.
4.2QUALITY AND SAFETY OF OUR ACTIVEINGREDIENTS AND INTERMEDIATES
**The level of absenteeism is calculated as the number of days lost due to illness/planned working days
Days lost due to illness and level of absenteeism (no.)*
2014 2015 2016
Total days lost due to illness
Level ofabsenteeism
Total days lost due to illness
Level ofabsenteeism
Total days lost due to illness
Level ofabsenteeism
Montecchio 6,858 4.21% 8,210 4.44% 8,831 3.19%
Termoli 1,093 4.12% 1,293 4.08% 1,293 2.76%
Total F.I.S. 7,951 4.20% 9,503 4.38% 10,124 3.13%
LA-6
*The frequency index is calculated as the number of accidents/hours worked * 1,000,000**The severity Index is calculated as the number of days lost due to accidents/hours worked * 1000
LA-6
Frequency index* and severity index** of the accidents (no.)
2014 2015 2016
Frequencyindex
Severityindex
Frequencyindex
Severityindex
Frequencyindex
Severityindex
Montecchio 14.1 0.32 16.4 0.3 10.9 0.31
Termoli 19.8 0.2 29 0.5 10.7 0.24
2014
2016
2015
MontecchioFrequency index
Severity index
14.10.32
16.40.3
10.90.31
2016
2014
TermoliFrequency index
Severity index
19.80.2
290.5
10.70.24
2015
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In 2001 we obtained the UNI EN ISO 14001 environmental management system certification for the two Termoli and Montecchio plants. This certification attests that our structures and products comply with existing regulations, but above all, it guarantees that there is a management system which can constantly improve performance in this field and, along with the OHSAS 18001 certification, anticipate new Health, Safety and Environmental needs.
Regarding the management of hazardous
waste and materials related to our produc-
tion, our aim is to pursue all recycling op-
portunities, particularly of solvents, that are
compatible with the quality concepts from
the Good Manufacturing Standards. We have
internal plants for the recovery of solvents
from the mother liquor that comes from the
production process.
The main type of waste produced at our
Montecchio and Termoli sites is “mother
reaction liquor”, which is the waste liquid
(water of organic solvent based) that forms
the “liquid bed” in which the chemical reac-
tion takes place due to the addition of suit-
able reagents. This waste is removed while
isolating the finished product (the active
ingredient in solid form) and can be treat-
ed using various methods, depending on its
characteristics.
Therefore, there are a number of waste
management methods, which include sol-
vent recovery by distillation and rectification,
although for both plants, a significant portion
of this waste is typically sent by road trans-
port for external disposal. For the Montec-
chio in particular, mother liquor with suitable
physical characteristics is sent internally for
incineration in the furnace for liquids, recov-
ering the heat generated to produce energy.
Recovery is usually refined with distillation
and/or evaporation columns and, whenev-
er possible, we re-use solvents within the
same production cycle.
Solvents and mother liquor that contain high
percentages of “noble solvents”, such as
aromatics, cannot be reused internally due
to contractual and regulatory restrictions or
due to a lack of structures in which they can
be stored separately. In this case, they are
classified as waste. Regarding their treat-
ment, we prefer to send them to authorised
third-party companies that operate in the
“regenerated solvents” market. We always
assess them according to their ability to
ensure that the material is recovered in full
compliance with the applicable regulations.
By the end of 2017, we will install a second
stripping1 system at the Montecchio plant to
reduce the flow of water to be incinerated
in favour of biological treatment. The Loni-
go plant is also assessing the possibility of
increasing solvent recovery and installing a
new column, work that could be carried out
during 2018.
In general, the volume of waste produced
has gradually increased over the past three
years in both of our plants due to the in-
crease in our production activity, which went
from a total volume of 54,145 tonnes in
2014 to 88,873 tonnes in 2016 (an increase
of 64.14%).
Over the same period, we ave also seen a
very significant increase in the volumes
of non-hazardous waste produced by the
Termoli plant, from 942 tonnes to 17,803
tonnes, which can be attributed to “excavat-
ed soil and rock” from the building site for
production plant B.
Despite the gradual increase, efforts have
been made in recent years to reduce the en-
vironmental impact linked to disposal. Spe-
cifically, bulk waste, which is currently man-
aged through direct discharge, has been
progressively eliminated. This is improving
the collection systems and further reducing
potential environmental impact by making
waste handling and transport more efficient.
In 2016, we also completed the installation
of a thermal dryer for the sludge produced
by the company’s internal wastewater treat-
ment plant. This significantly reduces the
sludge volume and allows it to be stabilised,
making it more efficient and sustainable to
transport this waste externally for energy
recovery.
4.3MANAGEMENT OF HAZARDOUSWASTE AND MATERIALS
1 In chemistry, stripping consists of transferring a gas dissolved in a liquid from the liquid phase to the gaseous phase.
Hazardous and non-hazardous waste produced (tonnes)
Tota
l F.I.
S.
Mon
tecc
hio
Term
oli
Tota
l F.I.
S.
Mon
tecc
hio
Term
oli
Tota
l F.I.
S.
Mon
tecc
hio
Term
oli
2014 2015 2016
Hazardous 48,619 36,528 12,091 49,185 38,781 10,404 69,250 58,953 10,297
Non-hazardous 5,526 4,584 942 5,735 4,504 1,230 19,623 1,820 17,803
Volume of waste produced 54,145 41,112 13,033 54,920 43,285 11,635 88,873 60,773 28,100
EN-23
Hazardous waste by disposal type (tonnes)
Tota
l F.I.
S.
Mon
tecc
hio
Term
oli
Tota
l F.I.
S.
Mon
tecc
hio
Term
oli
Tota
l F.I.
S.
Mon
tecc
hio
Term
oli
2014 2015 2016
External disposal 14,293 4,550 9,742 16,358 8,067 8,291 44,327 36,036 7,267
Internal incineration 22,598 22,598 - 21,973 21,973 - 13,598 13,598 -
External recovery 11,729 9,380 2,349 10,854 8,741 2,113 11,432 9,319 3,030
EN-23
Non-hazardous waste by disposal type (tonnes)
Tota
l F.I.
S.
Mon
tecc
hio
Term
oli
Tota
l F.I.
S.
Mon
tecc
hio
Term
oli
Tota
l F.I.
S.
Mon
tecc
hio
Term
oli
2014 2015 2016
External disposal 1,284 556 728 1,158 206 952 12,702 535 12,167
Internal incineration 3,323 3,323 - 2,857 2,857 - - - -
External recovery 919 706 214 1,720 1,442 278 6,921 1,285 5,636
EN-23
Tonnes of hazardous waste transported by F.I.S. to foreign destinations not owned by the company. The waste is mostly transported to a specialisedGerman company that treats it by thermal recovery, and a small part goes to an Austrian company
Hazardous waste transported abroad (tonnes)
2014 2015 2016
Hazardous wastetransported per year (F.I.S. total)
1,508 1,510 4,378
EN-25
*The high amount of waste produced in Termoli in 2016 can mainly be attributed to the operations of the new Department B,which generated significant volumes of excavated soil and rocks.
20162014 2015Solvents recoveredand reusedinternally (m3)MontecchioPlant
m3
9,227m3
10,084m3
12,823 SOLVENTSRECOVERED
Montecchio
36,528 - 4,584Termoli
12,091 - 942Volume of wasteproduced by F.I.S.
48,619 - 5,526
Montecchio
38,781 - 4,504Termoli
10,404 -1,230Volume of wasteproduced by F.I.S.
49,185 - 5,735
Montecchio
58,953 -1,820Termoli
10,297 -17,803*Volume of wasteproduced by F.I.S.
69,250 -19,623
Hazardous andnon-hazardous wastesProduced (ton)
HAZARDOUSWASTE
NON-HAZ-ARDOUSWASTE
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Main recycled solvents (% per tonne)
2014 2015 2016
HEPTANE
Purchased raw materials 599 643 843
Recycled raw materials 2,827 3,143 5,140
Percentage recycled solvent out of the total used* 82.52% 83.02% 85.92%
ISOPROPANOL
Purchased raw materials 2,525 1,594 2,991
Recycled raw materials 2,161 1,816 2,093
Percentage recycled solvent out of the total used* 46.12% 53.26% 41.17%
ACETONE
Purchased raw materials 2,076 2,288 3,153
Recycled raw materials 182 626 767
Percentage recycled solvent out of the total used* 8.06% 21.48% 19.57%
TOLUENE
Purchased raw materials 2,037 2,531 2,903
Recycled raw materials 1,212 1,929 1,824
Percentage recycled solvent out of the total used* 37.30% 43.25% 38.58%
TETRAHYDROFURAN
Purchased raw materials 393 1,310 1,683
Recycled raw materials 585 1,148 1,038
Percentage recycled solvent out of the total used* 59.82% 46.70% 38.15%
METHANOL
Purchased raw materials 5,597 4,968 7,947
Recycled raw materials 2,260 1,422 1,961
Percentage recycled solvent out of the total used* 28.76% 22.25% 19.79%
TOTAL
Purchased raw materials 13,227 13,334 19,520
Recycled raw materials 9,227 10,084 12,823
Percentage recycled solvent out of the total used* 41.09% 43.06% 39.65%
EN-2
In 2016, Montecchio Council increased fees
by 10,000 Euro because, on two separate
occasions, we exceed the “aluminium” pa-
rameter in the wastewater discharged into
the sewers from our internal wastewater
system plant that the water is further treat-
ed in the consortium purifier, these entirely
occasional events did not cause any type of
environmental pollution.
Moreover, in September 2016, as a caution-
ary measure, Gestore Acque del Chiampo
S.p.A. (Chiampo water management) tempo-
rarily suspended the discharging our waste-
water into the consortium sewers due to the
presence of PFAS2 over the limits established
for potable water. Specifically, as these sub-
stances are not present in the production cy-
cle of F.I.S., in-depth analysis found the pres-
ence in the foaming agents used in the fire
prevention system. This particular episode
has further strengthened the environmental
commitment of F.I.S., pushing us to find a
PFAS-free foaming agent and implement an
additional activated carbon filtration system
to ensure that we comply with the limits in
force.
2 Polyfluoroalkyl substances (or PFAS) are potential pollutants that have considerable resistance in the environment, together with a significant diffusion capacity and very long per-sistence, which make them widespread in the water environment and in organisms, including man, where they tend to accumulate over time.
5EXCELLENT,IN EVERY
MOLECULE* “Total used” solvent means the sum of the virgin solvent purchased and the solvent recovered after the distillation and rectification processes.
SUSTAINABILITY REPORT 2017 | 35
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For our company, reliability in customer requests is a key condition for continuing to operate in a market, such as the active ingredients market, characterised by high levels of product customisation and an extremely complex supply chain. Therefore, we believe that the flexibility and the ability to operate that constantly increase our reliability are the main catalysts of our success, the leverage that helps us to maintain a good reputation and the confidence of our business partners, whether they are our suppliers or our customers.
In total, we have about 1500 suppliers,
divided into chemical raw materials (approx-
imately 65% of the overall purchased vol-
ume), technical goods and services (approx-
imately 30%), utilities, logistics and disposal
suppliers. They are spread over 40 countries,
although the main purchasing sources are It-
aly for services and the far east for the raw
materials needed to manufacture the mole-
cules used in generating the active ingredi-
ents that we offer.
About 15 of our raw material suppliers are
considered key suppliers due to the large vol-
ume of goods that we purchase or the special
nature of the products they offer. Relation-
ships with these strategic vendors are mainly
handled by our Chinese office in Shanghai,
where there are people specialized in assess-
ing and selecting business partners. They pe-
riodically assess the key suppliers according
to their expertise and the production capacity
of their plants. They conduct periodic inspec-
tions to identify potential environmental or
safety risks that could negatively affect the
ability of these suppliers to supply the prod-
ucts we need in a timely manner.
Thanks to a continuous exchange of infor-
mation and data with key suppliers, we are
able to keep a constant eye on their business
and gradually pass on our best practices in
terms of plant modernisation, environmental
and social risk coverage and customer data
protection. In fact, our main goal is to have
a stronger relationship with these suppliers,
helping them to innovate and maintain a high
production capacity, while at the same time
encouraging them to adopt sustainability
practices.
In addition, supply chain management is
designed to monitor and predict purchasing
scenarios and verify product sales aspects
by forecasting the evolution of market con-
sumption and trends in the competitive con-
text in which we operate. In the light of this,
while meeting our customers' needs, we are
processing new risk diversification strategies
with the aim of improving new supplier se-
lection.
To this end, we have adopted the SRM soft-ware platform as part of a strategy to in-
troduce business intelligence software that
transversely affects business operating pro-
cesses. This instrument will become fully op-
erational in the first half of 2017, and serves
to systematise collection and monitoring of
supplier data. This will improve assessment
of suppliers based on their economic and en-
vironmental performance, offering better risk
assessment and management. In that way,
the SRM software will facilitate and simplify
new and existent supplier assessment pro-
cedures.
The Manufacturing and R&D departments, on
the other hand, collaborate in supplier selec-
tion specifically for generic products. Finally,
the Quality department supports the supplier
qualification process and continuous moni-
toring of supplied material quality.
Moreover, to ensure prompt deliver to the
customer, we have adopted a diversification
strategy at our plants to make best use of
their production capacity to satisfy all re-
quests, even unexpected ones. Specifically,
to guarantee greater efficiency and adequate
production speed parameters, over the past
year we have focussed on assessing the best
balance between availability, occupation lev-
el and operational flexibility of the plants.
PROTECTION.OF CUSTOMER DATA
Another of the best practices that set us apart
as a reliable company is our experience in
managing and protecting customer data. In
fact, customers often give us confidential
information about their products, so it is vi-
tal for our company's reputation and for our
business success to be able to guarantee the
utmost confidentiality always, avoid distribut-
ing this data and prevent it from getting into
the hands of unauthorised parties.
Currently, all business relationships with cus-
tomers are covered by secrecy agreements
and the intellectual property rights of the
products are protected by patents. Moreover,
as a further demonstration of our data pro-
tection capability, we have not received any
complaints over the past three years, and
there have been no cases of infringements,
illegal transfer by employees, theft or loss of
customer data.
However, with a view to continuous improve-
ment, to strengthen the current control, we
plan to introduce an internal process man-
agement model using SharePoint3 software
and transition progressively to a single data
collection and monitoring system through the
use of dedicated Business Intelligence soft-
ware.
In March 2017 we completed analysis to
verify the company's level of maturity with
respect to the European Union Privacy Policy,
which will be followed by defining an action
plan aimed at achieving full compliance.
5.1THE CATALYSTS OF OUR SUCCESS
These efforts are accompanied by those to
reorganise work shifts to allows a continu-
ous operational cycle as well as substantial
investments in machinery and technology to
meet the specific needs of customers.
Qualitative and organisational improvement of
its structure is another important factor that
the company is supporting. Specifically, the
Operational Excellence programme, imple-
mented in partnership with DuPont, serves
precisely to improve safety and quality perfor-
mance and to generally increase awareness
and commitment in workers regarding the
need for regulatory compliance.
Thanks to all of these efforts, we have re-
ceived the Best Supplier Award from our main
customer in 2014 and 2015, due to our pro-
duction flexibility and compliance with deliv-
ery times, even in the face of sudden changes
or increases in production requests .
We also intend to institutionalise the mechanisms for assessing and selecting new suppliers, using the capabilities of the SRM
platform and conducting dedicated training activities for employees at our Chinese office. At the same time, we aim to dissem-
inate good practices in terms of sustainability and respect for human rights throughout the supply chain, following the findings
obtained through SRM.
THE GOALS FOR 2020:
3Microsoft SharePoint is a software platform developed by Microsoft, a program that can create and distribute special websites primarily for company use (Intranet).
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Investments to ensure proper technological development in an highly advanced industry based on scientific research, such as chemistry and pharmaceuticals, are an indispensable condition for ensuring our company's economic sustainability. In fact, our customers are constantly asking us to implement new solutions to optimise synthesis processes and allow the development of the intermediate faster using a lower volume of raw materials, resulting in a lower impact in terms of costs.
For us, innovation means developing process-
es for the production of safe intermediates
and active ingredients for the pharmaceuti-
cal industry and with potential economies of
scale that allow it to be widely commercially
implemented, thus providing a competi-
tive advantage to our customers. With this
goal, we consistently carry out research in
the fields of physics, organic chemistry and
mechanics, often taking advantage of pat-
ent-protected technologies provided directly
by customers, which ask us to make best use
of them in customised processes.
To increase our expertise in this field and be
ready to respond to our customers' needs
right from the technology transfer for new
intermediate development, in recent years
we have hired new researchers, which has
brought our organisation to over 130 peo-
ple working in Research and Development.
Moreover, in 2016, we had a team of 12 people devoted to improving existing pro-
cesses and making them more sustainable,
both from an economic and environmental
point of view. The Company has invested
about 1.5 million Euro in this project.
In addition, there are currently 5 active col-laborations with universities (Venice, Pad-
ua, Bologna, Florence, Barcelona) that arise
from our need to find specialised know-how
on a number of innovative experimental
subjects, including peptides (Florence),
organic synthesis (Bologna, Venice, Bar-
celona) and enzymatic synthesis (Padua).
These collaborations involve the creation of
permanent laboratories within the university
departments and the development of new
skills, thus generating a very positive impact
on the universities and helping to build sol-
id relationships with our company. Over the
last few years, we have taken on 8 chemists
directly from university laboratories.
The research into peptides is especially
promising as it is part of one of the most
important branches of pharmacological re-
search, which aims to find new substances
that are more effective and targeted for in-
novative therapies.
An example of innovation that we have de-
veloped to meet the needs of customers is
the introduction of a production process for
sterile active ingredients through filtration in
apsepsis, and another is the investment in
implementing systems for HAPI (high potent
molecules, which are especially effective
even in very small doses). In this way, we try
to anticipate the needs of customers that in-
tend to provide patients with drugs that are
increasingly innovative and selective against
pathologies.
We have ventured into the world of pharma-
ceutical formulae, with the introduction of
Spray Drying technology, which can achieve
an intimate combination of active ingredient
and excipient for an improved drug formu-
lation.
Every time a new technology is introduced,
it is accompanied by training, often provided
directly by the customer, to ensure that our
employees develop new expertise.
5.2CONTINUOUS LOOP INNOVATORS
THE GOALS FOR 2020
Given the tremendous market potential and our privileged position in this segment, we intend to pursue research activities re-
lated to enzymatic chemistry. Similarly, we intend to expand the peptide projects.
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The unusual nature of our business means
that we must continuously interface with a
wide range of stakeholders, from our em-
ployees to the control bodies, with whom we
aim to create long-lasting relationships with
transparent communication and mutual ben-
efits.
With the goal of completely systematising
sustainability governance, we have defined
a mapping of the stakeholders that are most
important to F.I.S. This will help us to collect
significant instances in an organic way, so
that they can be presented to the top man-
agement in appropriate decision-making
situations.
The following table shows a cross-section of
our main stakeholders and defines the com-
munication channels and monitoring instru-
ments that we use to understand their needs
and communicate our actions. Moreover,
the table shows the main issues that have
emerged from these exchanges in 2016.
Regarding our business, we consistently
report to the most important international
health authorities, such as the Italian Minis-
try of Health, the American Food and Drugs
Administration, European Medical Commis-
sion, etc.
We have an internal Company Watchdog, a
body that includes F.I.S. and union repre-
sentatives, which aims to collect and an-
alyse their ideas and those of employees.
Specifically, this body promotes initiatives
that support the local community and dis-
cusses ways of involving the company, such
as man-hours of voluntary work offered by
the company.
In January 2017, we also created a Com-munication Manager position, the main
role of which is to strengthen and harmonise
the various internal and external commu-
nication initiatives, and render them more
consistent.
6.1OUR STAKEHOLDERS
STAKEHOLDERCATEGORY
COMMUNICATION CHANNELSAND MONITORING INSTRUMENTS ISSUES EMERGED
SUPPLIERSOF GOODS AND SERVICES
- Constant communication via email and web channels
- Periodic on-site visits 4 times per year, every 3 months
- Formal communications in which we recom-mend what operations the key suppliers should implement to adapt to the regulations and reduce risks
- Regulatory compliance- Process and product quality- Process risks- Product risks- Regulatory compliance and improvement in
Health, Safety and Environment and Concentra-tion Risk Threshold performance
SUPPLIERS(WASTE DISPOSAL)
- Periodic visits and audits- Audits at the waste disposal sites (2/3 per year)
- Continuous performance improvement of the suppliers
CUSTOMERS
- One-to-one meetings- Constant communication via email and web
channels- Annual audits by main customers
- Product development speed- Product quality and safety- Production capacity- Technological innovation- Data protection- Regulatory compliance- Accident and injury reduction- Continuous improvement in Health, Safety and
Environment control- Regulatory compliance and improvement in
Concentration Risk Threshold performance
EMPLOYEES
- Monthly committee meetings- Company communications- Quarterly meetings with management and
directors- Monitoring body
- Issues linked to Health, Safety and Environment and Quality aspects
- Information and updates on various issues- Company results, situations in progress,
company strategies and goals
STAKEHOLDERCATEGORY
COMMUNICATION CHANNELSAND MONITORING INSTRUMENTS ISSUES EMERGED
UNION REPRESENTATIVES(INCLUDING RLSA - workers' safety and environmental representative)
- Company watchdog
- Continuous health and safety improvement in the workplace
- Work-related stress (focus on Termoli)- Training to increases job-related expertise
(focus on Termoli)- Mobility: public transport for the home/work
route (focus on Termoli) and logistics problems linked to parking and company spaces (focus on Montecchio)
INTERNATIONAL INSTITUTIONS(E.G. FDA, ANVISA)
- Periodic inspections - Compliance with quality regulations
NATIONAL INSTITUTIONS(E.G. AIFA, MINISTRY OF HEALTH, MINISTRY OF THE ENVIRONMENT)
- Informal/formal communications via email and telephone
- Periodic inspections
- Regulatory compliance and improvement in Health, Safety and Environment performance
LOCAL INSTITUTIONS(E.G. ARPA, PA, CIVIL DEFENCE, CTR, ASL,LOCAL SCHOOLS AND UNIVERSITIES)
- One-to-one meetings- Periodic inspections of ARPAV (Venetian region-
al agency for environmental protection) and/or four-monthly transmission of technical reports
- Regulatory Health, Safety and Environment compliance
- Expectations of bordering municipalities regarding employment (focus on Termoli)
- Requirement for availability to offer work experience to secondary school pupils, alternating between school and work
- Requirement to collaborate with university students doing work experience or doctorates
- Contributions/donations for work done by the Civil Defence or local schools
LOCAL COMMUNITIESAND ASSOCIATIONS
- “Open Factory” - Website
- Understanding of F.I.S. operations and its impact on Health, Safety and Environment and Concentration Risk Threshold
- Contributions/donations for local social work
OWNERSHIP - One-to-one meetings during periodic plant vis-
its and board meetings
- Company trend- Governance and improvement in Health, Safety
and Environment performance
UNIONS, VERIFICATION BODIES, INDEPENDENT AUDITORS
- Quarterly verification
- Civil and fiscal compliance, company governance, risk management
- Compliance with preventive procedures and protocols (related to Form 231)
- Regulatory compliance and risk management
CREDIT INSTITUTES - Periodic meetings- Understanding of company business and trend- Analysis of financial needs
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6.2OUR PEOPLE, A STRATEGICRESOURCE FOR OUR OPERATIONOur three critical success factors – passion, responsibility and professionalism – make our people the most important strategic resource for our company. It is only thanks to their commitment, motivation and expertise that F.I.S. is able to maintain its market leadership in a context characterised by ever more rapid and unpredictable changes and increasingly high expectations of our customers.
THE PROFILE OF OUR EMPLOYEESOver the past three years, the number of our
employees has grown steadily, reflecting
the company's positive economic results. In
fact, we have gone from 880 employees in
2014 to 1285 at the end of 2016, an in-
crease of 46.02%. Thanks to the recent ac-
quisition of the Lonigo plant, the 328 people
employed at that site will also be integrated
into our business structure, and we hope to
continue increasing the organisation over
the coming years.
84.28% of our personnel are men, which is
due to the prevalence of plant operators, al-
though a lot of female personnel has joined
in recent years, even in areas that have
historically been prevalently dominated
by men, such as laboratories and mainte-
nance, as well as engineering and automa-
tion services. In recent years, we have also
seen strong growth in the number of young employees under 30. There were
108 in 2014 and 356 in 2016, an increase
of 229%. This extremely positive figure also
attests to our willingness to give growing
space to people who can bring fresh skills
and innovative points of view.
In contract terms, 96% of our people have an indefinite contract, of which 97% are
full time and the remaining 3% work part
time. Typically, personnel enter our plants
on a long-term contract with steady profes-
sional growth in order to develop the com-
plex technical and personal skills required
by our business.
All employees are covered by National Col-
lective Employment Contracts (for manag-
ers and chemists), and 2nd level Collective
Contracts applicable to company sites.
Employees divided by gender and contract type (no.)*
2014 2015 2016
Permanent contractMen 767 927 1031
Women 106 146 198
Fixed-term contractMen 3 6 52
Women 4 3 4
Total F.I.S.Men 770 933 1,083
Women 110 149 202
G4-10
G4-10
*The table does not include temporary workers and students doing work experience.
110
149
202770
9331,083
20152014 2016
+41%
+84%
Employees divided by professional area (no.)
2014 2015 2016
Tot. (males + females) Tot. (males + females) Tot. (males + females)
Directors 22 (19+3) 23 (19+4) 26 (20+6)
Management 109 (80+29) 121 (88+33) 134 (96+38)
Employees 263 (196+67) 283 (203+80) 360 (251+109)
Workers 486 (475+11) 655 (623+32) 765 (726+39)
G4-10
Directors
26 / 2016
Management
134 / 2016
Employees
360 / 2016
Workers
765 / 2016
Employees divided by gender and age group (no.)*
2014 2015 2016
Age
grou
p
Man
Wom
an
Tota
l F.I.
S.
Man
Wom
an
Tota
l F.I.
S.
Man
Wom
an
Tota
l F.I.
S.
Montecchio Maggiore
< 30 years 76 16 92 172 42 214 234 70 304
30 ≤ x ≤ 50 450 69 519 459 79 538 514 103 617
> 50 years 122 22 144 146 21 167 159 19 178
Termoli
< 30 years 16 0 16 45 2 47 49 3 52
30 ≤ x ≤ 50 83 3 86 78 5 83 85 6 91
> 50 years 23 0 23 33 0 33 42 1 43
Total F.I.S. 770 110 933 149 1,083 202
total permanentcontract 873
20141073
20151229
2016
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Hiring and termination at our plants (no.)
2014 2015 2016
Man Woman Man Woman Man Woman
Montecchio
Recruitments
< 30 years 32 8 105 27 84 35
30 ≤ x ≤ 50 49 5 30 11 61 21
> 50 years 3 1 4 1 2 0
Departures
< 30 years 0 0 5 1 10 1
30 ≤ x ≤ 50 5 1 4 2 3 4
> 50 years 6 3 8 3 5 0
Termoli
Recruitments
< 30 years 8 0 31 2 11 2
30 ≤ x ≤ 50 10 1 7 2 9 0
> 50 years 0 0 0 0 2 1
Departures
< 30 years 0 0 0 0 0 0
30 ≤ x ≤ 50 2 0 1 0 2 1
> 50 years 1 0 1 0 1 0
Total F.I.S.
Recruitments
< 30 years 40 8 136 29 95 37
30 ≤ x ≤ 50 59 6 37 13 70 21
> 50 years 3 1 4 1 4 1
Departures
< 30 years 0 0 5 1 10 1
30 ≤ x ≤ 50 7 1 5 2 5 5
> 50 years 7 3 9 3 6 0
117
18 25 27
220228
20152014 2016
Departures
Recruitments
Total F.I.S.
LA-1
EMPLOYEE LOYALTYTRAINING ANDCOMPANY WELFAREQuality and safety aspects cannot be ig-
nored in our business. For this reason, the
combination of our employees' expertise,
technical know-how, knowledge, behav-
iour and motivation makes the difference
that allows the company to stand out from
its competitors and to achieve individual
and collective performance for continual
growth.
Keeping employees with the company is
a key priority for us. To pursue this goal,
we are focusing on offering concrete op-
portunities for growth and development,
a performance evaluation system orient-
ed towards continuous improvement and
a rewarding system linked to achieving
goals. In addition, there is coaching based
on dialogue and continuous exchange be-
tween the superiors and employees and on
constant accompaniment by the Human
Resources department to ensure that each
employee has access to a custom channel
through which they can receive feedback
and express their own needs and motiva-
tion for improvement.
Regarding turnover, the data shows a pos-
itive trend, with 479 hired at Montecchio
in the past three years and 86 at Termoli,
in comparison to 61 and 9 terminations
respectively. An encouraging trend, which
demonstrates how our company is seen
as being attractive and how our employees
choose to grow with us, remaining within
the company for years. In fact, at the end of
2016, the turnover rate was 2.1%, slightly
less than the rate of 2.31% in 2015. Over
the past three years, this indicator has
been very low for employees of all types,
genders and age groups, except for wom-
en over 50 at Montecchio in 2014 and
2015, and those from 30 to 50 in 2016 at
Termoli, who have a higher rate due to their
being a very small portion of the organisa-
tion in these age groups.
Turnovertotal 2014
2.05%Turnover
total 2015
2.31%Turnover
total 2016
2.10%
Rate of turnover (%)
2014 2015 2016
Man Woman Man Woman Man Woman
Montecchio
< 30 years 0.00% 0.00% 2.91% 2.38% 4.27% 1.43%
30 ≤ x ≤ 50 1.11% 1.45% 0.87% 2.53% 0.58% 3.88%
> 50 years 4.92% 13.64% 5.48% 14.29% 3.14% 0.00%
Termoli
< 30 years 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
30 ≤ x ≤ 50 2.41% 0.00% 1.28% 0.00% 2.35% 16.67%
> 50 years 4.35% 0.00% 3.03% 0.00% 2.38% 0.00%
Overall turnover rate 2.05% 2.31% 2.10%
LA-1
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It is equally important for us to ensure the
well-being of our employees through the
implementation of company welfare initia-
tives that make our plants tailored to the
needs of our people. In 2016, for example,
in Montecchio, work was carried out to ex-
tend the car park, and a full private bus ser-
vice with a timetable that coincides with the
shift patterns was set up at the full expense
of the company. In 2016, we also com-
pleted the works to double the company’s
canteen and further initiatives are planned
for 2017, when the second-level integra-
tive contracts will be renewed, and further
welfare issues will be developed. Training
is a third key element in increasing skills
and homogenising them to inform and raise
awareness of approaches that are increas-
ingly mindful of quality and security or to
improve relationship and management as-
pects of the operations and employees. Our
attention to the training and growth of our
employees can be seen in an increase in
the hours of training provided over the past
three years, totalling 20,461 hours in 2014
and 27,426 hours in 2016, an increase of
34.04% .
However, due also to a large increase in the
number of employees, the number of hours
of training per head dropped in the past
three years for all our employee categories,
especially for directors and management.
A similar trend can be seen when dividing
employees by gender, with a substantially
proportional drop in the number of hours of
training provided to women and men. This
trend could continue in the future, as the
teaching and training process is currently
being radically overhauled and optimised
to make it more efficient and effective, to
allow us to further improve the expertise
growth path of all our personnel.
Finally, the current difference in pay be-
tween women and men across all em-
ployee categories in the company are
consistent with a significant increase in
the number of young women at the start
of their careers. These inevitably have a
pay level that is lower than for men in the
same roles, who were the large majority of
the workforce until recently, and whose pay
level has increased in the meantime due
to the length of time for which they have
worked for the company.
Hours of training provided to the employees (no.)
2014 2015 2016
Directors 919 1,453 667
Management 5,585 6,603 5,814
Employees 6,003 5,924 7,939
Workers 7,954 12,163 12,547
Project/stage-based contracts n.a. 121 459
Hours of training provided 20,461 26,264 27,426
LA-9
Hours of training provided per employee (no.)
2014 2015 2016
Training provided to women 31.15 28.81 24.62
Training provided to men 24.78 25.91 22.11
Hours of training provided 25.58 26.31 22.50
LA-9
Over the next few years, the organisation will evolve further in the face of an increasing number of employees, establishing new
internal communication channels and upgrading existing ones, starting from the site and "social" channels.
We will also review the training and welfare needs of our people by conducting specific analyses and introducing skills updat-
ing systems that will result in structured learning paths, with the help of specialised trainers.
THE GOALS FOR 2020
LA-13
Pay difference between women and men (%)
Mon
tecc
hio
Term
oli
Mon
tecc
hio
Term
oli
Mon
tecc
hio
Term
oli
2014 2015 2016
Directors 83.14% 81.15% 78.42%
Management 103.04% 85.29% 98.09% 86.02% 97.19% 101.58%
Employees 97.68% 82.58% 94.01% 85.73% 93.47% 86.65%
Workers 89.27% 88.42% 88.72% 88.54% 89.58% 88.70%
Average pay differencebetween women and men
90.60% 85.20% 87.89% 86.51% 86.21% 94.25%
*The empty cells show that there are no women directors at Termoli.**The percentages are calculated as the total basic salaries for women/total basic salaries for men.***The total percentage for the Termoli plant does not include the directors' pay.
20,461 h 26,264 h 27,426 h
COLLECTIVE RELATIONSF.I.S. also takes care of its people through a
consolidated system of industrial relations,
developed together with the workers' un-
ion representatives. A relational model has
been progressively structured through the
2nd level collective contract. It is based
on continuous exchange, dialogue and
participation and aims to make the most
of the human and professional resources
employed by the company. Specifically, the
system of relations adopted has allowed us
to jointly identify and define the solutions,
measures and instruments to improve in
the collective working conditions, the reg-
ulatory and economic conditions of the
personnel and the levels of knowledge and
involvement of the partners.
Aware of the role that union relations play
as a factor and lever to support develop-
ment and growth, of both the company and
the people, together with the amalgamated
union body, F.I.S. intends to look for anoth-
er three plants. It also intends to implement
innovative contractual changes that can
raise the level of social responsibility and
to implement a company welfare system,
with the qualitative aim of creating a work-
ing environment, and especially, a worker
protection network that increasingly meets
the people's need and expectations.
The negotiations started to agree new
collective contracts for the three company
sites for the 2018-2020 period are also an
opportunity to introduce and try institutes
that can help the work to personal life bal-
ance, to reinforce worker support meas-
ures and to help people access goods and
services.
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7A SOLUTIONTHAT WORKS
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At F.I.S., we consider protecting the environment and protecting the territory to be two fundamental aspects of our business and we aim to ensure that we continue to constant focus on our impact with the same care that we take in maximising our product quality and business productivity.
This is why we constantly monitor the main
environmental impacts associated with plant
operations through our ISO 14001 environ-
mental management system, with the aim
of progressively reducing emissions from our
production operations, increasing energy ef-
ficiency and protecting the water resources
that we use as much as possible.
The company also devotes considerable fi-
nancial resources to improving its environ-
mental performance, implementing a wide
range of modernisation initiatives to reduce
the environmental impact of the plants, while
strictly complying with the applicable Italian
and European regulations and standards. In
fact, over the last three years, our investment
in environmental protection has increased
from 15.94 to 23.05 million Euro, an increase
of 44.59%.
Responsibility for managing environmental
impact correctly is divided among the Energy
Manager, the Ecology department, the Health,
Safety and Environment section and the di-
rectors of the three plants. We are currently
working in many areas.
Regarding our energy consumption, for ex-
ample, in May 2016, a new integrated meth-ane-fuelled trigeneration system4 was
completed at the Montecchio site, which will
give significant savings in the electrical power
purchased from the national grid, while mak-
ing generation of calories and frigories for pro-
duction more efficient.
In just the last eight months of 2016, we estimate
that this change has saved us approximately
1,764.9 TOE (tonne of equivalent oil) of electrical
and thermal energy, equivalent to 11.39% of the
energy consumption of the Montecchio plant in
2015. Based on these measurements, starting
from 2017, we expect an annual saving of ap-
proximately 15-16% with respect to 2015.
Over the last year, our total energy consump-
tion increased by 51.29% from 501,088 GJ to
758,098 GJ, mainly as a result of the installa-
tion of the new methane-fuelled cogeneration
plant and the company’s growth in production
volumes. Regarding our energy mix, F.I.S.
gives priority to purchasing energy sources
with low environmental impact. such as nat-
ural gas, which accounts for 52.12% of our
energy consumption.
There is a rising consumption trend because
of the increase in production capacity at the
Montecchio site, which has caused the H and
I Departments to expand in the past three
years, including all of their services. Intro-
ducing new molecules with high added value
into the production cycle has increased the
consumption of both raw materials and en-
ergy, which has slightly improved the overall
energy balance of the plant.
In addition to the increased energy con-
sumption, greenhouse gas emissions have
also risen from 56,092 to 64,669 tonnes of
CO2 equivalent from 2014 to 2016, a rise
of 15.29%. However, this is not a matter of
“fugitive” emissions, i.e those due to phys-
iological and non-accidental losses that
characterise certain chemical plants, as all of
our plants are closed-loop and are equipped
with systems for conveying vent and emis-
sions to systems of internal heat combustion
and reduction systems. In addition, in order
to further ward off the risk of leakage, these
tools are subject to preventive and periodic
maintenance by our technical staff.
7.1OUR COMMITMENT TO THE ENVIRONMENT
Investments in environmental protection (millions of euros)
2014 2015 2016
Incinerator management, water treatment, and waste disposal 13.37 13.27 19.73
Other investments 2.58 2.95 3.32
Total investments 15.94 16.22 23.05
EN-31
Overall energy consumption (GJ) /
2014 2015 2016
Diesel and gas oil 401 261 221
Natural Gas 288,745 307,337 423,298
Electricity supplied by the grid 205,840 232,343 237,647
Electrical energy from other sources* 6,102 2,322 96,932
Total energy consumption 501,088 542,263 758,098
Energy consumption / tonne of product (GJ/tonne) 496.84 593.72 806.12
EN-3EN-5
*The heading “Electrical energy from other sources” refers to the trigeneration plant installed in May 2016.
4Trigeneration is a special category of cogeneration systems that, in addition to producing electrical energy, can use the heat energy recovered from thermodynamic transformation to generate cooling energy, which is chilled water for conditioning or for industrial processes.
2016 €23,050,000
2015 €16,200,000
2014€15,940,000
Direct and indirect greenhouse gas emissions over the three-year period (tonnes CO2eq)
2014 2015 2016
CO2 emissions (scope 1) 42,441 44,009 48,960
CO2 emissions (scope 2) 13,651 15,581 15,709
Total 56,092 59,590 64,669
CO2 emissions (scope 1 and scope 2) / tonnes of product (tonnes CO2 e/tonnes) 55.62 65.24 68.77
EN-15EN-16EN-18
The CO2 produced is counted, the contribution of other greenhouse gasses is not counted as they are completely negligible in F.I.S. production cycles.
In recent years, we have completed a series of technical changes that have allowed us reduce green house gas emissions from
our plants and thereby increase our overall environmental performance.
- In 2016, we rebuilt the combustion chamber of the Montecchio plant and invested in replacing a boiler, which will be com-
pleted during 2017.
Knowing that further improvements can be made, we have also planned a series of actions that we will put in place to increase
the efficiency of the plants, starting from 2017:
- In 2017, we will install a new more efficient burner at Termoli to increase energy savings and thereby reduce greenhouse
gas emissions.
OUR CHANGES TO REDUCE GREENHOUSE GAS EMISSIONS
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In addition to greenhouse gas emissions, our plants also emit other substances, such as nitrogen oxides (NOx), sulpher oxides (SOx), volatile
organic compounds (VOC), particulate matter (PM) and carbon monoxide (CO). Their emission levels have remained largely unchanged over the
past three years, with oscillations due to contingent operations of the individual plants.
Another category of potential environmental impacts associated with
production activity concerns water consumption and the treatment of
waste water following production processes. Specifically, F.I.S. only
uses groundwater to meet its water needs, with an increase in total
consumption from 1,205,400 m3 in 2014 to 1,406,345 m3 in 2016
(+ 16.67%), also in this case due to an increase in production levels.
Our internal processes allow us to minimise the water consumption
of the plant since most of the water used in production processes
(for cooling purposes) is continuously recycled and reused. Our evap-
oration towers provide an estimated saving of about 3,200,000 m3 of
water per year, which is 228% of the 2016 consumption.
The water discharged from the Montecchio
and Termoli sites is mainly the wastewater
from the chemical, physical and biological
processes of the treatment plants, which
serve to reduce the pollution load leaving the
plants. Only water that can be treated using
bacteria and biological processes is sent to
the treatment plants, while other industrial
water is sent for external treatment. In both
cases, the quality and chemical composition
of the discharged water is monitored daily.
In line with the increase in water consump-
tion, the volume of discharged water has also
increased by 15.76% at the Montecchio site,
passing from 1,189,888 m3 to 1,377,468 m3
in the past three years. Also in this case, we
have started a series of changes to improve
the quality of the discharged water and to in-
crease the volumes that are treated. During
2016, the system that regulates the water to the treatment plant was improved at
Montecchio, and a continuous TOC5 analys-
er was installed on the drain that flows into
the consortium sewer system. Moreover, a
tertiary active carbon filter was installed
to serve the biological system. Finally, after
the PFAS levels in the surface water rose – a
problem of regional interest – at the begin-
ning of 2017, F.I.S.started a process that led
to replacing the foaming agent used in the fire-fighting systems used in the company
up to that time as they contained traces of
PFAS.
Emissions of the main pollutant substances at the Montecchio plant (kg)
2014 2015 2016
NOx 13,592 13,062 14,010
SOx 49 47 187
VOC 5,180 2,862 1,958
PM 330 224 329
CO 1,972 1,657 1,856
EN-21
Water withdrawal at MONTECCHIO (m3)
2014 2015 2016
Surface water (e.g. rivers, lakes) 0 0 0
Groundwater 1,205,400 1,298,082 1,406,345
Total water withdrawal 1,205,400 1,298,082 1,406,345
Water withdrawal / tonnes of product (m3 / tonnes) 1195.19 1421.26 1495.43
EN-8
Overall emissions of the main pollutant substances (kg)
2014 2015 2016
NOx 19,551 18,051 16,930
SOx 55 48 189
VOC 5,212 2,922 2,028
PM 330 224 329
CO 2,377 2,528 3,452
EN-21
Emissions of the main pollutant substances at the Termoli plant (kg)
2014* 2015 2016
NOx 5,959 4,989 2,920
SOx 6 1 2
VOC 32 60 70
CO 405 871 1,596
EN-21
* The 2014 data for the Termoli plant is partial as the measuring system for fine particulate matter emissions only started operating in June of this year. In other terms, the real emission for 2014 are higher than those shown on the graph.
Water withdrawal at TERMOLI (m3)
2014 2015 2016
Total water withdrawal 403,228 418,421 442,245EN-8
Composed of: industrial, potable and fire-fighting water
Recycled wastewater at MONTECCHIO (m3)*
2014 2015 2016
Recycled or reused water 3,200,000 3,200,000 3,200,000
Percentage of consumption 265% 247% 228%
EN-10
*The value shown refers to the estimated water saving with the plant running before and after implementing the evaporation towers.
Water discharge at MONTECCHIO by destination (m3)
2014 2015 2016
Water discharged into the sewers 510,560 515,229 562,554
Water discharged into surface water 679,328 675,400 814,914
Total 1,189,888 1,190,629 1,377,468
Water discharged / tonnes of product (m3 / tonnes) 1,179.81 1,303.61 1,464.72
EN-22
In recent years we have seen increased discharge into surface water – from 679,328 m3 to 814,914 m3. However, the water discharged in this
way is meteoric in origin, and is not involved in production operations. Therefore, it does not need to be purified and does not affect the surface
water into which it flows.
5Total Organic Carbon, often abbreviated to TOC, is a measure of the amount of carbon bound in an organic compound and is often used as a non-specific indicator of water quality or in the analysis of fumes resulting from combustion processes.
Water discharge by treatment type (m3)
2014 2015 2016
Chemical, physical and biological treatment to consortium sewers 510,560 515,229 562,554
Meteoric water to surface water 679,328 675,400 814,914
Total 1,189,888 1,190,629 1,377,468
EN-22
The last category of impact that can be linked to our plants is related to noise pollution produced by our production plants and transportation of
raw materials. In recent years, we have attempted to reduce the noise level by soundproofing the evaporation towers at the Montecchio plant
and ducting into silencers.
Over the next few years, we will be making further efforts to reduce environmental impact, such as the installation of new
burners for gas emissions at Termoli and Lonigo, and a new boiler for steam production at Montecchio Maggiore, to reduce NOx
emissions and improve energy consumption.
THE GOALS FOR 20207A
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Employees employed in Montecchio from the territory
measurementunit 2014 2015 2016
Employees resident in Montecchio % 9.70% 9.30% 8.30%
Employees residing less than 20 km away % 75.90% 75.20% 75.10%
Employees residing more than 20 km away % 14.40% 15.50% 16.60%
Employees employed in Termoli from the territory
measurementunit 2014 2015 2016
Employees residing less than 20 km away % 71.20% 77.60% 76.30%
Employees residing more than 20 km away % 28.80% 22.40% 23.70%
After more than half a century of production at Montecchio and almost 25 years in Termoli, we are proud of our report of profitable integration
with the territory in which we operate: in the face of steady growth in safety and development planned in agreement with local governments,
the company has been an important driver of employment development, as seen in the growing number of employees – of which an increasing
number are young people – and their high professional qualifications.
But that's not enough. Aware of our potential
to provide additional social development op-
portunities to the communities we work with
each year, we carry out school initiatives and
projects and sponsor events, public spaces
and youth sports teams for the benefit of the
entire community, demonstrating the deep
attachment that binds us to the territory of
Termoli and Montecchio.
For the last two years, for example, we have
sponsored the School Diary of Compre-hensive Institute 2 in Montecchio, which
has over 800 primary and secondary school
pupils. Moreover, in 2016 we contributed to
the purchase of musical equipment for the
Marco Polo di Alte School, which has un-
dertaken a project using music as a cultur-
ally aggregating element, in an area that has
strong element of foreign immigration. Our
proactive commitment to communities is also
demonstrated by the number of sponsorships
and donations that we have confirmed in
2016, such as sponsoring the Vicenza rug-by team and adopting a green area within
the city. Moreover, in 2016, we donated an
outpatient container to the Gagliole Munici-pality, which was hit hard by the earthquake
that affected the Marche Region.
Our direct relationship with schools in the
territory of Montecchio and the surrounding
areas, with particular attention to the insti-
tutes offering chemistry courses, has always
been a business priority, further confirmed
and enhanced in recent years with numer-
ous visits to the company by 4th and 5th
year pupils, who have been included in work
experience programs that alternate school
and work. In 2016 alone, we have hosted 26 pupils and we expect to host 30 in 2017.
We are also assessing the possibility of up-
grading the school-work alternation program
at Termoli. Moreover, in the past three years,
our relations with the academic world of
universities has allowed us to host a dozen
thesis projects or academic apprenticeships
as a part of the degree courses of the var-
ious universities with which we collaborate.
Finally, in 2016 we organised a dozen visits to
the Montecchio plant with secondary school
pupils and university students.
The idea of organising regular visits to the
plants is also seen in the “Open Factory” initiative, which will be replicated at the end of 2017, and which aims to give all local
citizens a look at our business operations. In
the last edition of the event, we welcomed
almost 3,000 visitors to the Montecchio plant,
accompanying them on a visit to production
facilities, laboratories and services. The inter-
est shown is a sign of the strong attention
that the company and its products attract, as
well as the possible employment opportuni-
ties.
7.2A RESPONSIBLE LINK
We intend to replicate the “Open Factory” initiative to increase collective knowledge of the operations carried out at our plants.
THE GOALS FOR 2020
7A
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7A
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This document is the first Sustainability Report of F.I.S.It is based on the principles of the guidelines in the Global Reporting Initiative (GRI), version G4, according to the “Core” approach. The Report is the main instrument for reporting company sustainability performance and assessing its commitment, initiatives and continuous dialogue and monitoring process with reference stakeholders, the most important of which are our employees.
The Report considers the operations per-formed by F.I.S. S.p.A. during 2016. Therefore, it does not cover the facts, data and informa-tion related to other companies of Holding F.I.S. Moreover, given that the Lonigo plant was acquired recently, it has not been includ-ed in the report, which therefore is limited to reporting information for the Montecchio Maggiore and Termoli sites. Regarding the temporal limits, the data, initiatives, projects and actions reported refer to the period from 1 January 2016 to 31 December 2016. How-ever, the report sometimes mentions notable facts that took place before or after this period of time if they had a significant impact on the company's operations.
In accordance with the GRI, this edition of the Report is based on a material analysis to define the reporting issues that are most im-portant for the company and its stakeholders.
Starting from a mapping of the company's stakeholders, we identified the most impor-tant sustainability issues to help understand the operational and strategic context in which F.I.S. operates and describe the company's main environmental, economic and social impact. To identify the issues, we started by reflecting internally on the business of F.I.S. and considering the requirements of the GRI guidelines. Subsequently, the selection of the issues was enriched by a benchmark analy-sis and comparison with the issues that the
Sustainability Accounting Standards Board (SASB) – a non-profit organisation that aims to develop and distribute sustainability report-ing standards – identified as being important of the Health Care sector. Finally, a series of interviews with members of the company's top management were held to prioritise the material issues. They provided their visions on the level of relevance that the carious categories of stakeholders associate with the various issues.
In this way, we obtained a materiality matrix that measures the relevance of a specific issue attributed by the stakeholders on the x-axis, and the relevance of each issue in re-lation to company operations on the y-axis. We then divided the matrix in to 4 quadrants and completed the analysis by identifying the 9 material issues, found in the top right quad-rant, the corresponded to a high relevance for both the stakeholders and the company, divided into 5 topical areas, which will be cov-ered in detail within this Report.
8.1A NOTE ON METHODOLOGY
Fight against corruption
Respect of human rights
Quality of relations with the institutions
Creating and maintainingemployment
Stock management
RELEVANCE FOR F.I.S.
MATERIAL ISSUES
RELE
VANC
E FO
R TH
E ST
AKEH
OLDE
RS
Enzymatic chemistry andsustainable raw material use
Professionalism, expertiseand know-how
Conformity of purchased raw materials
Passion and senseof belonging
Attention topeople
Businesscontinuity
Creating value for the territory
Ethicsand governance
Environ-mentalprotection
0
0
1
2
3
4
5
1 2 3 4 5
Initiatives to supportthe community
Investment in innovation and technological development
Sustainability of the supply chain
Environmentalimpact management
Professional development, growthand well-being
Proactivity beyond compliance
Data and intellectual propertyrights protection
Communication qualityand transparency
Production capacity anddelivery punctuality
F.I.S. MATERIALITY MATRIXMethods used to calculate the indicators. To calculate the EN-10 indicator, we estimated a conversion factor from kg to m3 of 1000 kg/ m3.
Material issue Description Associated GRI indicators Impact scope
Proactivity beyond compliance
One of our priorities is the need to ensure full compliance with the requirements of our main stakeholders. We continuously take new steps to maximise the health and safety of our employees and protect the environment, ensure compliance with our quality and safety standards and manage hazardous waste and materials from our production, carefully and in accordance with the law.
G4-LA6 - Type of injury and rates of injury, occupational diseases, lost days, and absenteeism, and total number of work-related fatalities, by region and by gender
G4-PR2 - Total number of incidents of non-compliance with regulations and voluntary codes concerning the health and safety impacts of products and services during their life cycle, by type of outcomes
G4-EN2 - Percentage of materials used that are recycled input materials
G4-EN23 - Total weight of waste by type and disposal method
G4-EN25 - Weight of transported, imported, exported, or treated waste deemed hazardous and percentage of transported waste shipped internationally
G4-EN29 - Monetary value of significant fines and total number of non-monetary sanctions for non-compliance with environmental laws and regulations
Direct impact, internal scope
Data and intellectual property rights protection
For a company like ours, credibility and customer loyalty are the basis for all commercial relationships. This is why we pay special attention to customer data protection and property protection throughout the whole supply chain.
G4-PR8 - Total number of substantiated complaints regarding breaches of customer privacy and losses of customer data
Direct and indirect impact, external scope (customers)
Production capacity and delivery punctuality
In a sector that is characterised by a high level of product innovation by the customer, we must provide a production capacity that is linked to the technology and the work force, is highly flexible and that can be adjusted according to the customer's needs. Moreover, we must guarantee prompt and high-quality delivery to the customer.
/Indirect impact, external scope (suppliers and customers)
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Material issue Description Associated GRI indicators Impact scope
Communication quality and transparency
As a company that operates in a sensitive sector such as the chemical one, we must always be able to report our operations and performance though transparent, high-quality communication to all categories of stakeholders, starting from the institutions, verification bodies, local communities and customers.
G4-27 - Stakeholder Engagement
Indirect impact, external scope (various categories of stakeholder)
Professional development, growth and well-being
We believe that our employees are the company's most important asset. In response to increasingly sudden market changes and higher customer expectations, is it essential that we can count on highly motivated and skilled people.
G4-LA9 - Average hours of training per year per employee by gender, and by employee category
Direct impact, internal scope
Environmental impact management
Proper environmental impact management is essential to make the company's operations progressively more efficient and to minimise any negative impact on the territory. This issue covers all of the initiatives intended to ensure control over greenhouse gas emissions, water resource protection and efficient energy management, as well as management of noise pollution.
G4-EN3 - Energy consumption within the organisation
G4-EN6 - Reduction of energy consumption
G4-EN8 - Total water withdrawal by source
G4-EN10 - Percentage and total volume of water recycled and reused
G4-EN15 - Direct greenhouse gas emissions (scope 1)
G4-EN16 - Energy indirect greenhouse gas emissions (scope 2)
G4-EN21 - NOX, SOX and other significant air emissions
G4-EN22 - Total water discharge by quality and destination
Direct impact, external scope (environment and local communities)
Investment in innovation and technological development
Investments to ensure proper technological development in a research-intensive and very advanced sector, such as chemistry and pharmaceuticals, are an indispensable condition for ensuring our economic sustainability and to meet the customer's need for an increases in process efficiency and consequent cost reductions. In parallel, process optimisation, to which we allocate a significant portion of our budget each year, is an excellence in the Italian active ingredients market.
G4-EC1 - Direct economic value generated and distributed
Direct impact, internal scope
Material issue Description Associated GRI indicators Impact scope
Sustainability of the supply chain
It is essential for us to prove that we are a reliable counterpart for our customers, able to manage, monitor and minimise the risks associated with the supply chain of our products and ensure business continuity.
/Direct impact, external scope (suppliers)
Initiatives to support society
The communities with which we work are an essential interlocutor for the real success of our operations. That is why every year we decide to invest in initiatives to support society, contributing to the development of the territory in which we operate.
G4-SO1 - Percentage of operations with implemented local community engagement, impact assessments, and development programs
Direct impact, external scope (local communities, public administration)
8.2GRI CONTENT INDEXGRI Content Index - Core Option
Indicator code GRI-G4 Indicator description References Omissions
1. ORGANISATION PROFILE/GENERAL STANDARD DISCLOSURES
Strategy and analysis
G4-1Statement of the most senior decision-maker on the importance of sustainability for the organisation and its strategy
Letter to the stakeholders NA
G4-2Description of the main impacts, risks and opportunities
Three proactive principles NA
Organisational profile
G4-3 Organisation name Letter to the stakeholders NA
G4-4 Main brands, products and servicesItalian by birth, international by vocation
NA
G4-5 Location of organisation headquartersItalian by birth, international by vocation
NA
G4-6
The number of countries in which the organisation operates, the names of the countries where the organisation carries out its main operations or countries particularly important for sustainability issues
Italian by birth, international by vocation
NA
G4-7 Ownership structure and legal formItalian by birth, international by vocation
NA
G4-8Markets served (including geographic breakdown, sectors served, customer types and beneficiaries)
Italian by birth, international by vocation
NA
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GRI Content Index - Core Option
Indicator code GRI-G4 Indicator description References Omissions
G4-9Organisation size (including number of employees, number of operations, sales, income, quantity of products or services provided)
The results of our commitment / Our people, a strategic resource for our operation
NA
G4-10Total number of employees, broken down by type of contract, professional area, geographical distribution and gender
Our people, a strategic resource for our operation
G4-11Percentage of employees covered by collective bargaining agreements
Our people, a strategic resource for our operation
NA
G4-12Description of the supply chain (no. of suppliers, supply volumes and markets)
The catalysts of our success
NA
G4-13Significant changes during the reporting period regarding the organisation's size, structure, ownership structure and supply chain
Italian by birth, international by vocation
NA
G4-14Explanation of how any precautionary principle or approach is implemented
In accordance with the precautionary principle or approach required by the Rio Declaration on Environment and Development of 1992, F.I.S. has implemented a series of precautionary measures to reduce its environmental impact, even though there is no proven scientific evidence of the above impact. Prevention of significant accidents is an integral part of the Health, Safety and Environment Policy described in the "Italian by birth, international by vocation" paragraph.
NA
G4-15
Subscription or adoption of principles, initiatives or charters developed by external bodies for economic, environmental and social performance
Italian by birth, international by vocation
NA
G4-16Participation in national and/or international trade associations
Italian by birth, international by vocation
NA
Scope of the Sustainability Report
G4-17Lost of bodies included in the consolidated report of equivalent documents
Italian by birth, international by vocation
NA
G4-18
Explanation of the process used to define the Sustainability Report contents and method used by the organisation to implement the related Reporting Principles
A note on methodology NA
G4-19 List of identified material aspects A note on methodology NA
G4-20 Material aspects within the organisation A note on methodology NA
G4-21 Material aspects outside the organisation A note on methodology NA
GRI Content Index - Core Option
Indicator code GRI-G4 Indicator description References Omissions
G4-22Explanation of the effects of any changes to previous reports and the reasons for those changes
NA
G4-23Explanation of the most significant goal and scope changes
NA
Stakeholder engagement
G4-24 List of stakeholders Our stakeholders NA
G4-25 Basis for stakeholder identification and selection Our stakeholders NA
G4-26The organisation's approach to stakeholder involvement
Our stakeholders NA
G4-27List of key issues that emerged from stakeholder engagement and description of how the organisation responded
Our stakeholders NA
Report Profile
G4-28 Reporting period A note on methodology NA
G4-29Publication date of the most recent sustainability report
NA
G4-30 Reporting frequency NA
G4-31Useful contacts for requesting information about the report and its contents
Back cover NA
G4-32 Conformity with the GRI guidelinesConformity with the GRI-G4 standard
NA
G4-33Policies and practices for external verification of the social sustainability report
This document is not subject to external verification
Governance
G4-34Governance structure of the organisation, including committees under the highest governing body
Italian by birth, international by vocation
Ethics and integrity
G4-56Description of the mission, principles, values and behavioural standards of the organisation
Italian by birth, international by vocation
NA
2. ECONOMIC PERFORMANCE INDICATORS
Economic performance
G4-DMA Disclosures on management approachThe results of our commitment
G4-EC1Economic value generated, distributed and retained
The results of our commitment
Indirect economic impact
G4-DMA Disclosures on management approach A responsible link NA
G4-EC7Development and impact of investment in infrastructure and supported services
A responsible link NA
3. ENVIRONMENTAL PERFORMANCE INDICATORS
Raw materials
G4-DMA Disclosures on management approachWaste and hazardous materials management
G4-EN2Percentage of recycled raw materials with respect to the raw materials used
Waste and hazardous materials management
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GRI Content Index - Core Option
Indicator code GRI-G4 Indicator description References Omissions
Energy
G4-DMA Disclosures on management approachOur commitment to the environment
G4-EN3 Energy consumption within the organisationOur commitment to the environment
G4-EN5 Energy intensityOur commitment to the environment
G4-EN6 Reduction in energy consumptionOur commitment to the environment
Water
G4-DMA Disclosures on management approachOur commitment to the environment
G4-EN8 Total water withdrawal by sourceOur commitment to the environment
G4-EN10Percentage and total volume of water recycled and reused
Our commitment to the environment
Emissions
G4-DMA Disclosures on management approachOur commitment to the environment
G4-EN15 Direct greenhouse gas emissions (scope 1)Our commitment to the environment
G4-EN16 Indirect greenhouse gas emissions (scope 2)Our commitment to the environment
G4-EN18Intensity of greenhouse gas emissions (scope 1 and scope 2)
Our commitment to the environment
G4-EN21 NOX, SOX and other air emissionsOur commitment to the environment
Waste
G4-DMA Disclosures on management approach
Waste and hazardous materials management/Our commitment to the environment
G4-EN22 Total water discharge by quality and destinationOur commitment to the environment
G4-EN23Total weight of waste by type and disposal method
Waste and hazardous materials management
G4-EN25
Weight of transported, imported, exported, or treated waste deemed hazardous and percentage of transported waste shipped internationally
Waste and hazardous materials management
Compliance
G4-DMA Disclosures on management approachWaste and hazardous materials management
G4-EN29
Monetary value of significant fines and total number of non-monetary sanctions for non-compliance with environmental laws and regulations
Waste and hazardous materials management
Overall
G4-DMA Disclosures on management approachOur commitment to the environment
G4-EN31Total environmental protection expenditures and investments by type
Our commitment to the environment
GRI Content Index - Core Option
Indicator code GRI-G4 Indicator description References Omissions
4. SOCIAL PERFORMANCE INDICATORS
Work practices
G4-DMA Disclosures on management approachOur people, a strategic resource for our operation
G4-LA1Total number and rates of new employee hires and employee turnover by age group and gender
Our people, a strategic resource for our operation
Health and safety at work
G4-DMA Disclosures on management approachThe health and safety of our people
G4-LA6
Type of injury and rates of injury, occupational diseases, lost days, and absenteeism, and total number of work-related fatalities, by region and by gender
The health and safety of our people
Currently, there is no available data on occupational diseases.Over the next few years, F.I.S. is committed to collecting the data needed to cover this indicator.
Training and education
G4-DMA Disclosures on management approachOur people, a strategic resource for our operation
G4-LA9Average hours of training per year per employee by gender, and by employee category
Our people, a strategic resource for our operation
Pay equity between women and men
G4-DMA Disclosures on management approachOur people, a strategic resource for our operation
G4-LA13Ratio of basic salary and remuneration of women to men by employee category, by significant locations of operation
Our people, a strategic asset for our operation
Local communities
G4-DMA Disclosures on management approach A responsible link
G4-SO1Percentage of operations with implemented local community engagement, impact assessments, and development programs
A responsible link
5. PRODUCT RESPONSIBILITY
Consumer health and safety
G4-DMA Disclosures on management approachQuality and safety of our active ingredients and intermediates
G4-PR2
Total number of incidents of non-compliance with regulations and voluntary codes concerning the health and safety impacts of products and services during their life cycle, by type of outcomes
The catalysts of our success
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Lendaro Gabriele - CSR Contact Person - [email protected]
Rasia Umberto Maria - Communications Manager - [email protected]
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