Methodological note

Ansaldo STS’ Sustainability Report at 31st December 2017, in its 9th edition, has been prepared in accordance with the “GRI Sustainability Reporting Standards“ of the Global Reporting Initiative, using the “in accordance – core” reporting option.

In order to ensure the quality of the report, Ansaldo STS follows the reporting principles for defining report content and quality in accordance with the GRI Standards, which provide a set of criteria to select the information to be included in the report and the related representation methods.

Principles for defining report content

  • Stakeholder Inclusiveness – Various activities of stakeholder engagement were carried out, as described in the "Sustainability Topics" chapter.
  • Sustainability Context – In the paragraph "Sustainability at Ansaldo STS", we have tried to give a clear definition of how the company interprets the sustainability as related to the business sector to which it belongs. Further, without losing an overall view, we have tried to describe local initiatives, reporting the features of the different markets (see “Our people” chapter and “Corporate Social Responsibility And Communities” section).
  • Materiality – To define the sustainability issues considered relevant, Ansaldo STS carried out a new materiality analysis. The internal analysis, carried out by the Sustainability Committee, assessed the different issues in relation to the Company's performance, the possibility of increasing its reputation and competitive advantage and taking into consideration associated risks. The external analysis was characterized by a broad involvement of the stakeholders (82) belonging to the most significant categories for the Company. To facilitate a comparison between the Aspects defined by the GRI Standards and the material Topics identified by Ansaldo STS, the following table cross-references them, providing information about any limitations regarding the aspect boundary too.

 

MATERIAL TOPIC IDENTIFIED BY ANSALDO STSMATERIAL ASPECTS GRI STANDARDSASPECT BOUNDARYLIMITATION REGARDING THE ASPECT BOUNDARY
INSIDEOUTSIDEINSIDEOUTSIDE
CUSTOMER SATISFACTION Stakeholder engagement Group -  -  -
ANTICORRUPTION Anti-corruption Group -  -  -
SOCIAL INNOVATION Customer health and safety; Marketing and labeling Group -  -  -
HEALTH AND SAFETY Occupational health and safety Group Suppliers  - Reporting scope partially extended to suppliers
PEOPLE CARE Employment; Non discrimination Group -  -  -
CREATION AND DISTRIBUTION OF ECONOMIC VALUE Economic performance; Market presence; Indirect economic impacts Group  -  -  -
PEOPLE TRAINING AND DEVELOPMENT Training and education Group  -  -  -
ETHICAL MANAGEMENT OF THE SUPPLY CHAIN Procurement practices; Supplier environmental assessment; Supplier social assessment Group Suppliers  - Reporting scope partially extended to suppliers
DIVERSITY AND EQUAL OPPORTUNITY Diversity and equal opportunities Group  -  -  -
STAKEHOLDER ENGAGEMENT Reporting practices; Stakeholder engagement Group - - -
SUSTAINABILITY GOVERNANCE Governance Group  -  -  -
INTEGRATED MANAGEMENT SYSTEM FOR ENVIRONMENT, SAFETY AND QUALITY Environmental compliance; Customer health and safety Group  -  -  -
SOCIAL DIALOGUE Stakeholder engagement; Labour management relations; Freedom of association and collective bargaining Group  -  -  -
PROTECTION OF HUMAN RIGHTS Human rights assessment; Child labor; Forced or compulsory labor; Rights of indigenous peoples Group Suppliers  - Reporting scope partially extended to suppliers
ENERGY CONSUMPTION Energy Group Suppliers - Reporting scope not extended to suppliers
LOCAL COMMUNITIES DEVELOPMENT PROGRAMS Local Communities Group  -  -  -
RAW MATERIAL CONSUMPTION AND RECYCLING Materials Group - - -
MANAGEMENT OF EFFLUENTS AND WASTE Effluents and waste Group Suppliers - Reporting scope not extended to suppliers
GHG EMISSIONS Emissions Group Suppliers  - Reporting scope partially extended to suppliers
POLLUTING EMISSIONS Emissions Group - - -
WATER CONSUMPTION Water Group - - -
BIODIVERSITY PROTECTION Biodiversity Napoli, Les Ulis and Beatesburg sites - - -

 

  • Completeness – The report has been issued in order to give stakeholders a complete picture of Ansaldo STS’ activities. The scope of the report refers to the Group, as indicated in the Annual Report at 31/12/2017. The issues relating to the environment, health and safety refer to subsidiaries’ sites that are considered as more significant, therefore representing 91% of employees of the entire Group, as specified in the “Environmental Performance” chapter.

Principles for defining report quality

  • Balance – In describing the outcomes of Ansaldo STS’ activities, we have sought to reflect both the positive and negative aspects (e.g. when reporting partially achieved goals in 2017 compared with commitments undertaken) to give a balanced view of the overall performance.
    • Comparability – To enable stakeholders to analyze changes in the Group’s performance, the Sustainability Report includes comparative data of the two-year period 2016-2017. Where significant the comparison covered the three-year period 2015- 2017. Income statement figures, expressed in Euros, have been translated at the exchange rates indicate in the 2017 consolidated financial statements. The scope of the data is always indicated (in the text or within specific notes), along with changes compared to previous years. The report structure has undergone some changes to make it easier to read.
  • Timeliness –  The Sustainability Report is prepared annually. To better meet the informational needs of stakeholders, where material, events that occurred after the reporting year end were also reported.
  • Clarity – The report has been structured to make the information easily identifiable by stakeholders (using icons for different sections and a navigation system). The 2017 Sustainability Report opens with the sustainability pillars and the letter from the CEO and General Manager, and includes seven sections: Company profile; Sustainability governance; Social Innovation; Our people; Corporate Social Responsibility and Communities; The Environment, health and safety; Economic Performance. This document ends with the Methodological Note, the Content Index and the Report of the independent auditors. The level of detail of information has been defined in order to make the report comprehensible, accessible and usable by the various stakeholders. The document refers to the Group’s website for certain matters, indicating the relevant web page address. The Sustainability Report will be distributed in a dedicated refurbished section within the Group’s website.
  • Reliability – The 2017 Sustainability Report has been approved by the Board of Directors and subjected to limited assurance by an independent body (EY) in accordance with the criteria included in the principle “International Standard on Assurance Engagements 3000 – Assurance Engagement other than Audits or Reviews of Historical Financial Information” (ISAE 3000 Revised), defined by the International Auditing and Assurance Standard Board (IAASB). EY was involved in the various stages of the reporting process in order to facilitate its review, in a constructive climate of collaboration.
  • Accuracy – Qualitative and quantitative financial information refer directly to the 2017 Consolidated Financial Statements, while the accuracy of Environmental, health and safety data and information come from certified management systems (ISO 14001 and OHSAS 18001). Social data have been mainly extracted from Ansaldo STS’ operating systems. Estimated data, as well as the formulas used are explicitly indicated. The conversion rates used for the calculation of direct GHG emissions (Scope 1) are those defined by the Greenhouse Gas Protocol Tool 2014 and for indirect emissions (Scope 2) by the Greenhouse Gas Protocol Tool 2012 and 2014. The values relating to the calorific powers refer to the Table of standard parameters used in the UNFCCC national inventory of CO2 emissions (average values of the years 2014-2016) for the calculation of emissions from 1 January 2017 to 31 December 2017.