Annual Sustainability Review - Seves

Seves_front_back:Seves_front_back 07/09/2008 09:26 Page 3Seves SpaVia R. Giuliani, 36050141 Firenze – ItalyT (+39) 055 449 51F (+39) 055 425 0096www.seves.com

Seves2008:seves2008 07/09/2008 17:27 Page 2Sustainability Review 2007-2008Vision and StrategyThis report presents the economic, social andenvironmental performance of the Seves Groupand gives a statement of its business values andethics.Seves’ goal is to manufacture and sell productsusing designs, processes, materials, employmentpolicies and business ethics that minimizeenvironmental impact, benefit society, reducecosts and make the company more competitive.Our ongoing successes in 2007-8 include:Introduced sustainability training seminars in Chinaand Europe for more than 40 of the seniormanagement.Partnered a customer to invest in sustainability.2.5% of contracted payments from both customerand ourselves (5% in total) are allocated tosustainability improvements.Modernized the burner control systems and addeddoors to the entry and exit of the tunnel kiln inSlovakia, which reduced emissions by some 15%.Refurbished the furnace at Shanghai Glass toreduce emissions by 5% and increase the qualityof the glass.Replaced four inefficient chamber kilns in Austrianfactory with a single, state-of-the-art shuttle kilnreducing emissions by 35%.Added two new electric kilns in Sweden operatingfrom nuclear and hydro-electric power.Refurbished the oven at Vitrablok, achieving a 5%reduction in emissions, while maintaining thequality of the glass.2

Seves2008:seves2008 07/09/2008 17:27 Page 3Sustainability Review 2007-2008Continued to increase kiln loadings at all ceramicfactories to reduce the number of firings and,therefore, emissions for the same quantity ofproduct. Emissions in Thailand were down 16%.Introduced new packaging for station postinsulators in Brazil, halving the amount of woodused in the packaging.Developed a new standard for glass insulators’wooden package, reducing the wood necessaryfor safe packing by some 20%.Introduced a new safety initiative to benefit allemployees and increase human resourcesustainability. The safety programme aims to reachthe best standards in the group at all factories viaan audit programme using internal and externalexpertise, reporting directly to a board member.Reduced raw material purchases by an estimated2% during the reporting period, with improveddesign, production processes and increasingInsuLite sales.Made donations to help the victims of the Sichuanearthquake in China. €33,397 was donated byemployees, with Seves giving a further €30,000.I am delighted that our employees haveembraced the concepts and goals ofsustainability. We look forward to the futuresupport of all our stakeholders to ensure thatSeves’ sustainability efforts continue to be highlysuccessful.Luciano Zottola, Executive Chairman31st August 20083

Seves2008:seves2008 07/09/2008 17:28 Page 5Sustainability Review 2007-2008Profile2.1 Name of reporting organizationSeves Spa.Seves was created in 1997, following themanagement buy-out of Vetroarredo, andprogressively integrated, over a period of 10 years,Vetrerie Lodi, Vitrablok, Dielve, Sediver, Solaris, PPCInsulators and Isoladores Santana, all of themrenowned worldwide for their history and leadership.2.2 Primary products and servicesSeves is the world’s leading manufacturer in twoniche markets: power insulators for electricalgeneration, transmission and distribution, and glassblocks for architectural and interior design.2.3 ActivitiesSeves supplies high quality products and servicesto customers in the building, power and processingindustries. It has:A total insulator production capacity of 118,000tons p.a., providing the broadest insulatorportfolio in the worldA total capacity for glass bricks of 60 millionDelivery of products in more than 120 countriesMore than 100 years’ experience5

Seves2008:seves2008 07/09/2008 17:28 Page 6Sustainability Review 2007-2008The global scale of the company2.4 Seves HeadquartersVia R. Giuliani, 360 Firenze, Italywww.seves.comToughened glassand composite insulatorsItalySeves S.p.A.Nusco (AV)BrazilElectrovidro S. A.Sao Goncalo (RJ)ChinaShanghai Seves Glass Co Ltd.Pudong, ShanghaiBeijing SediverChaoyang District, BeijingSediver Insulators (Shanghai)Co LtdPudong, ShanghaiZigong Sediver Toughened GlassInsulator Co LtdZigong City, SichuanTianjin Sediver CompositeInsulator Co LtdXiquing District, TianjinZigong Safam Cast Iron Co. Ltd.Zigong City, SichuanTianjin Dielve Insulators Co. LtdXiqing District, TianjinCanadaSeves CanadaSt Laurent, MontrealFranceSediver SANanterrePorcelain insulatorsUnited StatesSeves USA inc.Tiffin, OhioAustriaPPC Insulators GmbhViennaPorzellanfabrik FrauenthalInsulators Gmbh, FrauentalChinaPPC Shanghai Trading Co. LtdShanghaiPPC Wuxi insulators Co. ItdWuxi City, JiangsuBrazilIsoladores Santana S/APedreira (SP)SlovakiaPPC Cab a.s.Nove SadySwedenIf6 Ceramics ABBromollaGermanyElektrokeramik Sonneberg GmbhSonnebergThailandPPC Asian Insulators Co. ItdBangkokGlass blockItalySeves S.p.A.FirenzeBrazilElectrovidro S. A.Sao Goncalo (RJ)Czech RepublicVitrablok. a. s.DuchcovGermanySolaris GmbhWirgesChinaSeves Shanghai Glass Co. Ltd.ShanghaiLighting and special glassItalySeves S. p.A.Firenze and TorinoTechnical ceramic componentsGermanyCERA SYSTEM VerschleiBschutzGmbHThuringenProduct Engineering andTechnical AssistanceFranceSediver S.A, Saint-YorreTHT Laboratory, Bazet6

Seves2008:seves2008 07/09/2008 17:28 Page 7Sustainability Review 2007-2008Bazet, France Frauental, Austria Shanghai, ChinaSao Goncalo, BrazilSeves’ headquarters is in Firenze, Italy, and thecompany operates through the network ofmanufacturing plants listed on page 6. It alsoowns a state of the art, advanced testing facility inFrance, where electrical tests are performed. Seveshas developed, for each of its business sectors,commercial networks that are strategicallypositioned in each territory to provide prompt andtimely assistance to all its clients. Six of its facilitiesare shown here as representative of its globalnetwork of plants.Nusco, ItalyTianjin, China7

Seves2008:seves2008 07/09/2008 17:30 Page 8Sustainability Review 2007-2008Profile (continued)2.6 Nature of ownership; legal formPrivately held.2.7 Nature of markets servedSeves is the world’s leading manufacturer in twoniche markets: power insulators for electricalgeneration, transmission and distribution, and glassblocks for architectural and interior design.EC1 Net sales MEuro 440EC2 Geographic breakdown of markets %Europe 39North America 8South America 19Asia 23Africa 11Report Parameters3.1 Reporting periodApril 1st 2007 to March 31st 20083.2 Recent reportsThis is Seves Group’s first report.3.3 Reporting CycleAnnual3.4 Contact personProf. Thomas JohanssonThomas.Johansson@ppcinsulators.com3.13 Policies and practices to enhance accuracy,completeness and reliability of the reportReports from each country and each site arechecked and consolidated at the Group level.2.8 Scale of SevesNumber of people 4360Net Sales MEuro 440See also Economic Performance Indicatorson Page 118

Seves2008:seves2008 07/09/2008 17:30 Page 9Sustainability Review 2007-2008GovernanceStructure andManagementSystemsStructure and Governance4.1 Governance structure of Seves, includingcommitteesSeves is committed to international standards ofcorporate governance and in particular the CorporateGovernance Code in Italy. In addition, Seves observescodes of best practice in the other countries in whichit operates.The board of directors consists of more nonexecutivedirectors than executive directors. Theboard reviews the audit report with the auditors. Ithas meetings of non-executive directors withoutexecutive directors being present and, in line with theCode, has clarified the role of the board, its authorityand powers of delegation.Nomination of board members is designed torepresent properly the various stakeholders in thebusiness and to ensure compliance in legal andcorporate governance issues.4.9 Board level processes for overseeing sustainabilityThe board intends, once a year, to review thesustainability report and highlight any areas ofchange. The board is also provided with othercompanies’ sustainability reports and providesindependent insight to areas requiring focus.4.10 Organizational structure for improvingsustainabilityThe executive responsible for sustainability reportsto the executive committee and collects informationfrom a world-wide network of appointed personnel.Stakeholder Engagement4 14 Stakeholder consultationSeves intends to conduct at least one consultationper year with stakeholders. The next is planned forNovember 2008 and is intended to includeshareholders, customers, suppliers and employees.9

Seves2008:seves2008 07/09/2008 17:30 Page 10Sustainability Review 2007-2008Overarching policies5.0 Programs and procedures pertaining tosustainability performanceSeves’ goals are to:Reduce the amount of material consumed, perspecific volume of manufactured products, whichis directly or indirectly extracted from the ground.Reduce the amount of energy consumed perspecific volume of produced products and increasethe percentage use of renewable energy.Completely avoid using any material that isharmful to the environmentImprove health and safety and general workingconditions of people within Seves throughtraining, organisation and best practice.Improve the performance of our products in orderto increase their cost efficiency.Minimise the waste of natural resouces in all theirforms, such as water, wood, paper and,particularly, waste materials to landfill sites.All plants have ISO 9000 certification and threehave received ISO 14000 certificates. Other plantsare also pursuing ISO 14000 approval.10

Seves2008:seves2008 07/09/2008 17:30 Page 11Sustainability Review 2007-2008EconomicPerformanceIndicatorsMonetary flow indicatorsEC1CustomersMEuroNet sales 440Geographic breakdownof markets %Europe 39North America 8South America 19Asia 23Africa 11SuppliersMEuroCost of allpurchased supply 29095% of payments are to contract terms. This isdue to cross-border financing and resolvinginvoice queries.The Company as at 31st March 2008AssetsMEuroAccounts receivables 89Inventories 113Other receivables 71Net Fixed Assets 211Investments in yearMEuroPhysical and intangible assets 33.3LiabilitiesAccounts payables 61Other payables 78Labour ProductivityKEuroRevenue per employee 100.9Public SectorEC8Total sum of taxes paid 3166EC10Charity Donations made 32Charitable donations were made to NationalChildrens Homes and Sichuan earthquake victims.At many of Seves’ plants, employees can donateblood to certified organisations during paidworking time.Seves does not fund political organisations andunions or organisations that represent them, nordoes it sponsor congresses for politicalpropaganda.11

Seves2008:seves2008 07/09/2008 17:31 Page 12Sustainability Review 2007-2008EnvironmentalPerformanceIndicatorsMaterialsEN1 Material that has a known influence on theenvironment. Such materials are:Organic SubstancesKgs usedPVC resin 3065Phthalats 54Bromine compounds 0Fungicides 60Polyurethane 1028Epoxy 7620Silicones 478192Inorganic SubstancesKgs usedLead 249433Cadmium 0Mercury 0Products in use containinghazardous inorganicsubstancesKgs In UseMercury 0EnergyEN3 Direct energy useGWhsOil 6Coal 59Gas 993District heat 5Electricity 210Total 1273EN6 Initiatives to use renewable energy.Many energy suppliers do not offer renewableenergy alternatives but Seves’ goal is to increase itspercentage of use of renewable energy.WaterEN8 Water consumptionKTonsPurchased 952Extracted from ground 583Extracted from surface 186Total 1721EN9 Effect on water sourcesSeves’ production processes do not consumewater; the main uses are for cooling or for processinginorganic insoluble materials that are separatedbefore release of the water.12

Seves2008:seves2008 07/09/2008 17:31 Page 13Sustainability Review 2007-2008BiodiversityEN11 Total amount of land owned, leased ormanaged for production activitiesSquare metersTotal amount ofland used 1192046Of which occupiedby buildings 414937EmissionsSee also the Chairman’s reported successes duringthe reporting period: Pages 2-3.EN18 Greenhouse gassesTonsCO2 141319EN20 NOx and SO2TonsNOx 702SO2 363EN21 Discharges of cooling and process waterTonsTo public sewer 392380To water sources 359835EN22 Hazardous waste sent for disposalEN23 Spills and other incidentsTons257No spills or other incidents which impact on theenvironment have happened within Seves’ plants.EN25 Impact on water recourses and relatedecosystemsNo impact on locations where Seves extracts ordisposes of water has been reported by Sevesemployees or relevant public control authoritiesduring the period covered by the report, except forShanghai (see EN28)13

Seves2008:seves2008 07/09/2008 17:31 Page 14Sustainability Review 2007-2008EN26 Significant environmental impact of principalproducts and services.Most of Seves’ products are made from porcelainand glass containing no materials that are released tothe environment. Therefore, no environmentalinfluence from these products has been observed.The polymeric products contain materials that have anegligible impact on the environment over timeComplianceEN28 Fines for non-compliance with applicablelegislation.Waste water from equipment was entering a rainwater channel in Shanghai, which resulted in a RMB30000 fee.EN29 Environmental impact of transportation.Material from suppliers % of totalBy road 76.0By rail 1.5By sea 16.0By air 6.5Deliveries from Seves locations % of totalBy road 53.5By rail 11.2By sea 23.0By air 12.3Traveling as % of total number of journeysBy road 51.7By air 42.5By rail 5.8Total number of journeys 313714

Seves2008:seves2008 07/09/2008 17:31 Page 15Sustainability Review 2007-2008Social Performance IndicatorsLabour PracticesLA1 EmploymentNumber of people 4360Including:Part-time workers 171Agency workers 311LA3 Representation by independent trade unionsPercentage of employees representedby independent trade unions 36%LA4 Information, consultation and negotiation withemployeesSeves’ policy is to follow all regulations relating toemployees. The policy contains in addition a generalresponsibility for managers to consult with employeesand address areas of concern.Health and SafetyA basic part of Seves’ social policy is to maintain asafe and healthy working environment in all plants.In 2006 Seves increased its focus on its previoussafety regime and launched an all-embracing auditprogramme and organisation aimed at increasingsafety. Its aim is to reach European safety standardsin all its activities worldwide.Specialists from both inside and outside Seves havea coordinated programme of visits to auditoperations. They collect information using a setreporting package and, via the Direction Committeefor Safety, Environment and Health, a report is madeto a main board director.Seves also re-emphasised to employees and tooutside contractors the need to work according tosafety standards and procedures, to take care of theirown health and safety and that of other people. Thisis to be achieved through training and use of safetyand control equipment provided by the company.LA7 Standard injuries, absentee rate and fatalities(incident rate as per 1000 employees)Work-related incident rate per 1000employeesFatal 0.23Serious injury 10Total number of lost days 5,701Commuting and business travelrelated incident rate per 1000employeesFatal 0Serious injury 0.23Total number of lost days 164Training and EducationLA10 Mean value of educationHours per employee 18.75Diversity andOpportunityLA11 Composition of senior managementWomen in the top three highest levels ofmanagement %In Europe 6.6In N America 3.0In S America 5.8In Asia 14.115

Seves2008:seves2008 07/09/2008 17:32 Page 16Sustainability Review 2007-2008Human RightsHR1 Strategy and managementSeves has a code of conduct with a Control Body,as per Italian legislative decree 231, which extendsboth inside and outside the company.Seves is committed to treating people with respectfor human dignity and to being a good employer,with the development of its employees as acornerstone of this commitment. Seves is committedto promoting responsible behaviour in respect ofhealth and safety.Seves’ ethics within the code of conduct follow theprinciples of honesty, transparency, privacy, loyalty,integrity and good faith.The group management and the Seves Board areguided by the relevant United Nationsrecommendations for human rights.HR4 Non-discriminationThe policy of Seves is to eliminate completely anytype of discrimination within the Group.In countries where Seves has employeesdiscrimination is illegal. In all cases the company’spolicy is to follow the law and at the same timemaintain the Group Culture that discrimination in anyform is never acceptable.The evaluation and recruitment of personnel isbased on whether the profiles correspond to thecompany needs. In compliance with equalopportunities, selection is based upon skills andcapabilities. Any information requested will respectthe candidate’s private life and opinions.HR5 Freedom of association and collective bargainingSeves respects the wishes of employees to formand join any trade union of their choice.HR6 Child LabourUsing child labour is illegal in the countries whereSeves has employees. In all cases the company’spolicy is to follow the law and at the same timemaintain the Group Culture of good employmentpractice. During 2009, Seves plans to implement childlabour criteria into purchasing specifications.Age demographics of young employees as ofMarch 31st 2008:Employees below age of 20 75Employees below age of 18 2Employees below age of 16 0HR7 Forced and compulsory labourIn the countries where Seves has production thelegal system completely prevents forced labour. Weplan to incorporate this during 2009 as one of ourselection criteria when investigating potentialsuppliers.16

Seves2008:seves2008 07/09/2008 17:32 Page 17Sustainability Review 2007-2008SocietySO1 CommunitySeves has a close cooperation with thecommunities at locations where we are active. Suchcooperation includes finding optimum solutions forboth Seves and local communities regardingoperation of the production unit.Seves also contributes to the positive developmentof societies by contributing to specific activities.Such contributions include supporting sport,education and cultural activities. Seves also supportssocieties affected by natural disasters in countrieswhere our products are manufactured.SO2 Bribery and corruptionSeves believes in international competition, whichmakes the Company sharper, leaner and moreattractive as supplier of choice to our customers.Within Seves’ code of conduct, situations whichmight cause a conflict of interest must be avoided.Many Seves subsidiaries hold anti- trust seminars,in particular for some 30 key personnel in the USAand Europe during the past 4 years.This education is aimed at continuing to ensurethat our people comply fully with our guidingprinciples.SO7/8 Legal ActionsThere have been no legal actions against Seves fornon competitive behaviour, and no fines.17

Seves2008:seves2008 07/09/2008 17:33 Page 18Sustainability Review 2007-2008Product ResponsibilityPR1 Customer Health and SafetySeves’ products have a positive impact on societythrough improved health care, standard of living andsafety.These effects arise, in general, from the fact thatSeves’ products supply two niche markets: powerinsulators for electrical generation, transmission anddistribution, and glass blocks for architectural andinterior design.Receivers of electrical energy include the following:Hospitals, where a stable and safe supply ofelectricity improves the health level in societyPrivate homes, where a stable and safe supply ofelectricity improves life in the homeOutside areas, where lighting improves safety byreducing traffic accidents and criminality.In addition, the electrical supply to industry isfundamental to the economic development ofsociety.As a result of intensive research and development,Seves provides products which are highly reliable and,therefore, reduce the risk to public safety byincreasing the potential for a stable electrical supplyto factories, homes, roads, hospitals, publicinstitutions and transportation.PR2 Products and servicesIdentification markings placed on each productmake it possible to identify every step used in themanufacturing process for each specific product orbatch. The identification is made by markings eitherof a clearly different colour to the basic material ofthe product or by a cast or moulded identification.On ceramic Insulators, such labelling is formed at atemperature above 1000C and behaves as aninherent part of the product, with a lifetime at leastas long as the decoration of old Chinese porcelain,i.e. well over 1,000 years.On glass products, it is either stamped or mouldedinto the molten glass. Composite insulators havenumbers moulded into their metal ends. When theinsulators are finished, identification is engraved onthe fittings.Other information is limited to the identificationinformation because Seves’ finished products havenegligible influence on the environment.18

Seves2008:seves2008 07/09/2008 17:33 Page 19Sustainability Review 2007-2008Design and photomontageby Tabby Designwww.tabbydesign.co.ukPrinted using biodegradable inks onpaper derived from 100% recycledand sustainable sourcesPhotographs © Fotolia.comexcept page 3 (insulator), pages 4-5 (all)and page 18 (boy with glass block).19

Annual Sustainability Review - Seves

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