2015 sustainability report

SAMBONET PADERNO INDUSTRIE S.P.A.

SUSTAINABILITY REPORT2015

Letter to the Stakeholders 4

introduction 6

> 10 principles, 10 commitments 6

> Notes 7

Sambonet Paderno Industrie 8

> Paderno 8

> Sambonet 8

> Vision 10

> Mission 10

> Values 10

> Strategic aims 10

> Company 11

> Activity 12

INDEX

environmental performance 14

1st Principle - environmental sustainability 14

2nd Principle - Adoption of a preventive approach 17

> Indicator 17

> Paper 17

> Methane 19

> Electrical energy 20

> Water 20

> Waste 24

> Packaging 27

> Wastefinishedproduct 27

3rd Principle - Efficient use of natural resources 28

> Materials 28

> Water resources 29

> Energetic resources 29

4th Principle - Monitoring and reduction of environmental impacts 30

> Wastewater 31

> Production 31

> Turnover index 31

5th Principle - Focus on innovative technologies 32

6th Principle - Product stewardship 33

7th Principle - production chain stewardship 33

8th Principle - Awareness raising and training 35

9th Principle - Transparency with stakeholders 36

10th Principle - Consistency with International policies 36

> Transparency and ethics 37

> Organisational model 37

> Sustainable development 37

> Human rights 37

social Performance 40

> External stakeholders 40

> Internal stakeholders 40

SUSTAINABILITY REPORT 2015 SAMBONET PADERNO INDUSTRIE 3

2010 – 2015. Five years have passed since Sambonet Paderno Industrie first Sustainability Reportpublication and the enthusiasm and dedication are still the same. The Company always sets for itself the aim of guaranteeing the highest quality of all products, considering demand increase, and above all, following innovative standards that meet customer needs. Commitment to quality has always played a fundamental role, and in recent years, issues related to environmental and social awareness have also come to the forefront. With this perspective, Sambonet Paderno Industrie has created and carried out projects to improve its Corporate Responsibility policy by tighteningcontrols, planning appropriate formation and structuring responsible management of resources. Through a gradual cultural change with constant focus on its environmental approach, clear goals andfine-tuningofprocesses,todayitispossibletounderstand the importance and practicality of what has taken place over the past years. The result of thisprocessarebenefitsthathelpedtheCompanygrow industrially and in reputation, improved the role and work life of those involved and made a positive impact on the local community and land. As evidence of the efforts being made towards responsible consumption and natural conservation of energy and water, 2015 has been the year in which a very important project dealing with the saving and optimization of consumption was completed. The Group therefore received energy certification UNI EN ISO 50001:2011. This mostrecent certification is now added to the other

voluntary ones regarding food safety and quality (UNI EN ISO 9001:2008 e ISO 22000:2005),environmentalsafety(UNIENISO14001:2004)andworkers health and safety (OHSAS18001: 2007),achieved and maintained with a constant attention to product quality and improvement of the work environment. To ensure a further check on item safety,theCompanyinternallycarriesoutaspecificmigration analyses through the ASEC Lab, its own internallaboratory,whichhasobtainedtheUNICEIEN ISO/IEC 17025:2005 certification, concerningthe general requirements for the competence of testing and calibration laboratories.Lookingtowardsthenextfiveyears,theGroupwillundertake a new project dealing with Corporate Social Responsibility based on IQNET SR 10guidelines, as well as foster its continued desire to give particular attention to the voice, values, needs and expectations of all those who interact with the Company (employees, the financial community,shareholders, the local community, suppliers, customers, local associations and the media). Amodus operandi aimed at sharing the concrete impact of the Company’s decisions, publicly sharing all information tied to its activities in a clear and transparent way and communicating objectives with absolute integrity and clarity. Within this report, it’s possible to retracing the data and success that demonstrate the Group’s sustainability, transparency and stakeholder interaction. These key factors distinguish the work and future development strategy of the Company.

LETTERTO THE STAKEHOLDERS

franco coppoceo of Sambonet Paderno Industrie

headquarters of Sambonet Paderno Industries in Orfengo (no)

5SUSTAINABILITY REPORT 2015 SAMBONET PADERNO INDUSTRIE

The statement on the social and environmental impact of the Company’s activities, the commitment to its employees and the relationship with suppliers and customers make up the “social or sustainability report”. This tool is evidence of the business’ human and ethical profile aswell as the code of conduct thatconstitutesitsmissions:toprotecttheenvironmentandimprovethequalityofpeoplelives.Thisiswhyitsmandatory implementation could contribute to sustainable economic growth.In contrast to the financial statements, it is a spontaneous report that is not subjected to checks orcertifications.Preparingandspreadingpreparingandspreadingitisafreechoice,motivatedbyagenuinedesire for transparency.

With this fifth issue of the Sustainability Report, prepared according to the guidelines set out byConfcommercio, the Company wants to provide an outline of its corporate activities and its operational methods, highlighting the actions undertaken to pursue ethical and sustainable development and explaining the results achieved.

10 PRINCIPLES, 10 COMMITMENTSThe mission of Sambonet Paderno Industrie S.p.A. is to manage and develop brands that represent the consumersfirstchoiceofconsumers.The Company’s approach to sustainability, in addition to be a responsible attitude, has a positive impact onthebusinessintermsofprofitandeconomicgrowth.Forthisreasonithasbecomeanintegralpartofthecompanyphilosophyanditguidesallactivities:fromthechoiceofrawmaterialstothefinalproduct.Thecompanyfocusesontenkeyprinciplesthatresultinasmanycommitments:

1 - ENVIRONMENTAL SUSTAINABILITYIt becomes part of the corporate culture and it plays an important role in the mission. As a matter of fact, theCompanyhasrealizedthatonlyenvironmentalsustainabilitywillleadtoresponsibleandlong-lastingdevelopment.Long-termvisionthusprevailsovershort-termvision.

2 - ADOPTION OF A PREVENTIVE APPROACHThe Company acknowledges the importance of the prevention activity and allocates resources for this purpose. This approach is constructive also because it makes all the people responsible for management analyse and face current and potential problems and strive to prevent them. One of the areas in which prevention is crucial is environmental protection. As a matter of fact, any other approach in this area may cause irreparable damage and seriously affect the whole community.

3 - EFFICIENT USE OF NATURAL RESOURCESThe Company is aware of the limited amount of available natural resources and commits to manage them responsibly at all organisational levels. Special attention is paid to the use of raw materials, water and energy.

4 - MONITORING AND REDUCTION OF ENVIRONMENTAL IMPACTSMonitoring is crucial to understand the current situation in terms of environmental impact, to plan improvement actions and to check the results of their implementation.

5 - FOCUS ON INNOVATIVE TECHNOLOGIESTechnology is a useful instrument to implement some of the objectives of environmental protection (for instance inwatersaving:somespecialwashingprocesses,whicharedescribed furtheron,ensuresatisfactoryresults).

INTRODUCTION

6 - PRODUCT STEWARDSHIPThe Company pays much attention to the whole product life cycle, focusing on environmental protection at every stage.

7 - PRODUCTION CHAIN STEWARDSHIPThe whole production chain is assessed in terms of sustainability and environmental protection in order to fully implement the project.

8 - AWARENESS RAISING AND TRAININGThe Company believes that the involvement of human resources plays a key role, with a view to forge a corporate culture based on environmental protection. All the staff are directly required to contribute to the success of the project in different ways depending on their activity. The staff are also constantly monitoredandencouragedalsobymeansofspecificpaybonuses.

9 - TRANSPARENCY WITH STAKEHOLDERSTransparency consists in disclosing the content and the results of the project by involving the whole chain in its actual implementation.

10 - CONSISTENCY WITH INTERNATIONAL POLICIESThe themes of sustainability and environmental protection are monitored and they also play a key role in international business relationships.

NOTESMETHODOLOGICAL NOTETheSustainabilityReportofSambonetPaderno IndustrieS.p.A. (hereafteralso referredas the“Company”orSambonetPadernoIndustrie)hasbeenpreparedaccordingtotheCharterofEnvironmentalSustainabilityPrinciplesbyConfindustria,apointofreferenceforsharedprinciplesforsustainabledevelopment.TheprocessofpreparingtheSustainabilityReporthasinvolvedalltypesofcompanyfunctions,coordinatedinresearch and reporting of activities, proving the successful collaboration of all interested parties.

PROCESS AND INFORMATION QUALITYThe document shows the main economic, environmental and social impacts of the Company in order to provideabroaderframeworkfortheactivities,themostsignificantaspectsinthesectorandthereferencelocaldimension.The details provided for every reporting area depend on their importance in the objectives and strategies of Sambonet Paderno Industrie.The document has been drawn up using a simple and clear language, while data are presented by means of images, diagrams and tables so that they can be easily understood and interpreted.ToprovideamorecomprehensivepictureinthisReportindicatorsandstatisticaldatahavebeenused.Allthedatahasbeenprocessedandverifiedbytheappropriatedepartmentmanagers,referringto2015(fromthe1stofJanuarytothe31stofDecember)andalwayspresentingthemostupdatedinformationavailable.TheSustainabilityReportisproducedannuallyandtheCompanyisgoingtouseitsstandardofficialmediatodisclose it.

CONTENTSThe structure of the document reports sustainability performances based on 10 principles for 10 commitments, eachforaspecificactionarea.Asummaryofthetopicsthatwillbecoveredinthisdocumentisgivenbelow,from the beginning of the Group to the history of each brand.


Sambonet Paderno Industrie, based in Orfengo, between Novara and Vercelli, is a leading Italian manufacturer of top quality designer items for the tabletop and kitchen, both for the home as well as for the catering sector.Sambonet Paderno Industrie was established in 1997 following the purchase of Sambonet by Paderno, a renowned international manufacturer of professional cookware and kitchen items. In 2009 the Company purchasedRosenthalAG,aprestigiousGermanproducerofitemsinporcelainanddesigneraccessoriesfor the table. Arthur Krupp, Hutschenreuther, Thomas, Rosenthal meets Versace, Arzberg and, sinceOctober2015,theFrenchErcuiseRaynaudextendandenrichtheportfoliooftheGroup.Today the Piedmontese Group plays an important role at Italian and international level in tabletop and in the supply of the best hotels around the world.

SAMBONETSambonet represents the Italian excellence in production of design objects for table and kitchen. Founded in1856bythegoldsmithmasterGiuseppeSambonet, thebrand–already fromthefirst1900s–waschosen by the noble families of that age for their services, beginning that path of growth, evolution and innovation that marked its history. A history characterized by technological primacy, the achievement of numerousentrepreneurialgoalsandtheidentificationofauniqueandtimelessstyle.StartingfromtheSixties, Sambonet began a series of collaborations that would have lead to the winning of prestigious internationalawardssuchasCompassoD’OroADI,RedDotandGoodDesignAward.Perfectlycombiningtradition and innovation, safeguarding quality and care for details, the brand ranges from the most classic stylestodesignexperiments,offeringawiderangeofflatware,holloware,coffeelines,accessoriesanddecorativeobjects,allmarkedbythestyleandtheknow-howtypicaloftheCompanyandofitshistory.

PADERNOOver 10,000 items make up Paderno’s offering destined to chefs and gourmands. From cookware to kitchen utensils, knives, baking articles and preparation instruments, Paderno presents a complete selection for the top kitchens.Thebrandfinds itsorigins in1925 inPadernoDugnano, rightoutsideMilan. It started off with “Alluminio Paderno” and specialized in the home cooking sector. Eventually, it crossed over into the professional sector. After acquiring Sambonet, the Company expanded its silver and stainlesssteelflatwareanddishware.With over 90 years of history and a strong worldwide presence, Paderno is a reference point for professionals and lovers of good cooking, offering a wide range of cookware and utensils guaranteed to suit every need. The items manufactured are accompanied by a wide range of complimentary products.

SAMBONETPADERNO INDUSTRIE

VISIONManaging and improving its business by enhancing its own values of history, quality, stability, innovation and safety assuring social and environmental responsibility.The foundation of the corporate identity can be seen in the way the Company operates, from the technical and production point of view to the development of the attitude to identify, encourage and meet the needs of the consumer.TheCompanytriestoachieveitsgoalsthrough:

> support and good standing of all the brands;> trust in people and teamwork;> responsibility towards the stakeholders and the business.

MISSIONThrough a clear common strategy, the mission aims to improve and increase international business, according to the distinctive features and placement of each brand.The Company would like to support and promote the excellence, design, style and typically Italian values that have been the keys of its leadership in the business.The experience and know-how of the Group, focused on competitiveness and innovation, give acontribution to the success in both the Ho.re.Ca business and the retail business of tableware, kitchenware and household items.

VALUESTheCompany’svaluesandbeliefswhichguideitsactionsare:

> people are the best and most permanent investment;> responsibility is clear and personal;> the teamwork makes possible the achievement of objectives;> the goal is to understand, respect and satisfy the customers;> the reputation is the most important thing.

STRATEGIC AIMSTheglobalstrategyoftheCompanyisbasedonthefollowingpriorities:

> increasing a solid and suitable product portfolio for each segment of the market;> constantly improving the commercial performance in all markets;> developing through the global dimension of the Company and the differentiation of its production.

The Company works promoting its own growth in the target market, improving its international outlook in order to distribute its products in the foreign markets where it is present. Coherently with the global strategy, Sambonet Paderno Industrie has set some ambitious objectives to pursue through a constant effort that goes in the direction of a sustainable and responsible development. In particular, it aims to consolidate its position in the market through the leadership of the brands Sambonet, Paderno and Arthur Krupp and to strengthen the portfolio and the business strategy, focusing on the people development, a key asset for the Company.

BILANCIO DI SOSTENIBILITÀ 2015 SAMBONET PADERNO INDUSTRIE10

company name

Sambonet Paderno Industrie S.p.A.

business fieldENGINEERING

addressS.R.11,KM84townORFENGO(NO)

provinceNOVARApostcode28060

ISTAT

code

2851

fou

n

dation year1856

Total

number of

employees265

office

workers135

factory

workers130

full time261

part time4

typical

working time8AM-4.45PM

working days

per week5

working months

PER year12

closing

periodNONE

total area (m2)150,000

MALEemployees

FEMALE employees

COMPANY

29% 32% 42%

71% 68% 58%

2013 2014 2015

75

182

87

183

111

154


RAW MATERIAL ARRIVAL

RAW MATERIAL STOCKING

MATERIAL SETTING

SILVERING

ASSEMBLING

TESTING / PACKAGING

FINISHED PRODUCTS STOCKING

SHIPMENT

FLATWARE• Bloom’s shearing• Millwork• Pro les cutting• Stamping• Washing• Printing• Polishing• Final washing

HOLLOWARE / COOKWARE• Dishing / Printing / Trimming• Washing• Braze welding• Cleaning• Assembly / Handles riveting• Picking• Final cleaning• Final washing

production chain

ACTIVITYSambonet Paderno Industrie is an engineering company, specialized in the productionofcookware,hollowareandflatwareinstainlesssteel,nickelsilverandaluminum.

The production site is equipped with a latest technology automated galvanic system.In respect to its traditions, it maintains a manual silver plating department.

Productiondepartmentsare:

> Centro Stile> Tooling Department > Material preparation> Flatware> Cookware and holloware > Welding> Electroplating

>Specialfinishes> Polishing> Assembling> Testing> Laser and pantograph> Warehouse> ASEC Lab analysis laboratory

SUSTAINABILITY REPORT 2015 SAMBONET PADERNO INDUSTRIE12

RAW MATERIALSUSED IN 2015

stainlesssteel

blued steel

aluminum

TYPE KGDisc 328.154Strip 99.418Tube 86.638Square 63.163430 strip 39.736Sheet 29.802Drawn 6.107304 2B twin lead 2.664

TYPE KG1050 soft alloy disc 120.6653103 alloy disc 111.7621050 hard alloy disc 30.236Strip 5.8273103 alloy square 4.298

nickelNickel crown

0.05%490 kg

67.58%653.018 kg

28.23%272.788 kg

2.67%25.820 kg Nickel

silver

Sheet

1.21%11.720 kg

copperTYPE KGAnnealed copper bar 1,823Border 53

0.19%1.876 kg

silverGranules

0.05%520 kg


FIRST PRINCIPLE1 ENVIRONMENTAL SUSTAINABILITY SambonetPadernoIndustriebelievesthatactinginaresponsiblemannerhasapositiveinfluenceonitsgrowth, demonstrating company stability. From an environmental point of view, it is committed to the safety and conservation of natural resources, realizing the importance of their preservation.SambonetPadernoIndustriewascertifiedin2005accordingtotheUNIENISO14001:2004environmentalcertification,whichin2016willbeupdatedaccordingtothenewUNIENISO14001:2015guideline.InApril,theCompanyobtainedtheenergycertificationUNIISO50001:2010,andinSeptember,underwentthefirststagefortheCorporateSocialResponsibilitycertification,accordingtotheIQNetSR10guidelines.Thisprocesswillbecompletedinthebeginningof2016withtheattainmentofacompetencecertification.

Corresponding to the size and activities of the organization and focused on the continual improvement of environmental performance and pollution prevention, this policy has been integrated following new standardsofquality,safetyandproductsafetyaswellasthenewenergycertification.TheQuality,EnvironmentandSafetypolicyhasbeensignedbythehighmanagementoftheCompanyand in order to share these values with all the employees, it has been posted in the Company’s notice boards and published on the employee’s digital time clocks and on the Company website.

The integrated Policy of systems of Sambonet Paderno Industrie aims at reaching the following shared objectives:>caretowardsthecustomer:qualityoftheproduct,pricecompetitiveness,respectofdeliverytime;> reduction or elimination of high polluting products;> limitation of the production processes which cause relevant environmental impact or that may cause potential risks for the health and the safety of the workers;> reduction in the production of special wastes and/or solid wastes;> awareness that the responsibility of the health and the safety management of the workers concerns the entire Company, from the Management to each employee, each one according to his competences;> constant aptitude to propose situations able to develop improvement and, if already existing, create a monitoring plan;>efficiencyofthesafetyandhealthmanagement;> awareness raising of the employees concerning the importance of respecting rules of health and safety at work.

ForacorrectevaluationoftheCompany’sinteractionsandenvironmentalandenergyimpacts,pleasefindbelow an analysis of the different steps of the supply chain, focusing on the qualitative and quantitative aspects of the input and the output which are more relevant on the environmental impact.

ENVIRONMENTALPERFORMANCE

Someofthetopicstakenintoconsiderationwere:> use of raw materials;> energy;> soil;> emissions into the atmosphere;> wastewater;> waste;> released energy;> other.

For the evaluation of environmental aspects, Sambonet Paderno Industrie has decided to use checklists takenfrom:GuidelinesfortheIntegrationofEnvironmentalManagementSystemsaswellasSafetyandWorkplaceHealth(S&SL)forsmallandmediumenterprises.Thesenewinstrumentsidentifythefollowinginformationforeachstageofthemanufacturingprocess:> input and output;> phases of the process or activity;>otheroptionaldata(documents,responsibilities,etc.).

Standard conditions and any abnormal or emergency conditions are included and described as well, along with their frequency/probability of occurrence.Inordertodefinesignificantenvironmentalaspects,thefollowingsignificancecriteriaareused:1. aspect regulated by laws, authorisations, agreements;2. situations subject to recent sanctions imposed by the competent authority;3. quantitativesignificanceoftheaspectunderconsideration;4. toxicity, level of hazard relating to the aspect under consideration;5. importance for stakeholders and other impacts on the community; complaints or claims received.

Thesignificanceofeachenvironmentalaspect isestablishedbyusing thespreadsheetcontaining thecombination of the parameters required to determine the value of each environmental impact.

NON SIGNIFICANT SIGNIFICANT VERY SIGNIFICANT

0÷2 3÷5 6÷9

Action can be takenif deemed necessary

*To be scheduledwithin 6 months

*Action to be takenwithin 3 months

*Action to be taken withinthe minimum technical time required

Scheduled Action Immediate Action

Area where the environmental aspects are not significantin terms of both frequency

and probability of occurrence. However, these aspects need constant monitoring to make

sure potential hazardsare under control.

Actions may be either preventive or corrective.

Area where significant environmental aspects have

been identified. This requires identifying and scheduling

actions intended to manage their significance. Corrective

actions are required.

Area where very significant environmental aspects have

been identified. This requires an immediate corrective action.

ASSESSMENT OF ENVIRONMENTAL IMPACTS


Theanalysishasidentifiedthefollowingsignificantenvironmentalaspects:

Process Significant aspectPURIFICATION Atmosphere emissions Emissionsintotheatmospheredeemedsignificantarethoseofthepointofemission

relating to point 32.

Wastewater The discharge of wastewater is authorised by the Province of Novara. The parameters deemed dangerous are constantly monitored by carrying out weekly analyses on metal parameters based on the use of ASEC Lab’s ICP.

Use of raw materials Allthechemicalreagentsusedforpurificationareclassifiedasirritatingorhazardouschemicals.Alltheworkersinthegalvanicarea,wherethepurificationplantislocated,aretrained about and well aware of the reagents employed.

Waste Hazardouswasteresultfrompurificationandfromthesubsequentsludgethickeningprocess. Hazardous waste includes sludge and exhausted sand and carbon. Company authorised for disposal are involved and chemical analyses on waste are performed to determine hazardous substances and their association with the proper EWC code.

Soil This aspect was considered very critical. As a matter of fact, the batch tank for cyanide treatment is made of moplen and is located next to storage tanks precisely to prevent any spill. In addition, the whole area is equipped with screens, storage tanks and booster pumpsthatrecirculateallthesolutionsforpurificationpurposes.

COOKWARE Other Theaspectdeemedsignificantisnoise.Asregardsthisaspect,theRiskAssessmentdocument states that, based on the level of noise measured, workers’ turnovers on machines are required in the light of processing cycles. As far as the environmental aspect is concerned strictly speaking, it is deemed that noise cannot be reduced since the layout has already been optimised and machines have already been soundproofed where possible. In addition, external noise measurements have showed that the noise level is within the limits.

Energy consumption All the equipment used requires much energy, especially the equipment for braze welding, turning and spot welding of handles.

GALVANIC Atmosphere emissions Emissionsintotheatmospheredeemedsignificantarethoseofthepointsofemissionrelatingtopoints31,32and33.Thepointsaremonitoredonathree-yearbasisaspertheauthorisation issued and routine maintenance is performed on scrubbers.

Use of raw materials Alsotherawmaterialsusedwithinthecyclearedeemedsignificant.Alltheworkersinthegalvanicareaaretrainedabout,wellawareofandofficiallyqualifiedfortheuseoftoxicgases.

Other During manual polishing of items, the surfaces that come into contact with abrasive or polishing wheels heat up and release heat at a local point.

HOLLOWARE Other Theaspectdeemedsignificantisnoise.Asregardsthisaspect,theRiskAssessmentdocument states that based on the level of noise measured workers’ turnovers on machines are required in the light of processing cycles. As far as the environmental aspect is concerned strictly speaking, it is deemed that noise cannot be reduced since the layout has already been optimised and machines have already been soundproofed where possible. In addition, external noise measurements have showed that the noise level is within the limits.

Thenewchecklistshavealsobeenusedtoassesstheenvironmentalimpactofthefollowingdepartments:> factory outlet> gym> dining hall> laboratory

Noneofthesehaveprovedtohaveasignificantenvironmentalimpact.


SECOND PRINCIPLE2 ADOPTION OF A PREVENTIVE APPROACHInordertoreachtheimprovementaims,thefollowingelementshavebeenindentified:> resources needed;> timelines and means, determined by an accurate planning;> local critical issues, if any;> activation of communication channels with the stakeholders.Regularactivityreviewsandinternalauditshavebeenenvisagedwithaviewtoupdategoalsinordertoassess the effectiveness of the measures taken.

INDICATORTo better highlight what has been done and below explained, a trend assessment was made over the past years regarding all relevant environmental aspects. Indicators to see resource consumption, analysed bythenumberofkilogramsshipped(parameterindicatingcompanyperformance)wereusedinordertohomogenize obtained results. Indicators are the monitoring tool of environmental performance of the production process. They verify effectiveness of actions taken to achieve sustainability goals.

PAPERAnewmethodofmanagementandelectronic storageof thedocuments (“k-files”)hasbeencreatedand implemented.Thecorrespondencewith thecustomersandthesuppliers ismanagedbycertifiedelectronic mail. The production work is managed through touch screen terminals and the prints have been reduced to the minimum thanks to appropriate controls.To respect this objective, all the documents concerning the management system and the production have been created in a digital format, available through the corporate website and to be print only if really necessary.Allthestaffhavebeenencouragedtousepaperwiththeutmostresponsibilityalsobymeansofaspecificpay bonus established in 2012. The parameter is calculated as the ratio of the number of paper reams purchased toprocessedorders (workorders,purchaseorders, salesorders). The results obtainedaresummarized in the charts on the next page.

SENT KILOGRAMS

2013

2.964.000 kg

2014

3.354.000 kg

2015

3.181.000 kg

2012

3.521.000 kg


Theaveragepaperconsumption(no.ofreams/no.oforders)in2015wasequalto11.24–lessthantheprevious year and even less than 2013 and 2012 – thanks to the implementation of a documental archiving managementsystemwhichsignificantly reducespaperconsumption.Thisperformance is theresultofgreater attention to paper consumption by employees. To motivate employees, the Company has added an assessment index in the Performance Bonus, which has expired. On occasion of the renewal in the beginning of 2016, paper consumption will be one of the main value indicators for greater employee responsibility. The Company’s goal is to cut at least 10% of all consumption.Since October 2013, the Company has opted for the purchase of FSC paper only, testifying once again to itscommitmenttotheenvironment.TheFSClogomarkcertifiesthatproductsaremadeofrawmaterialsfrom forests that are responsibly managed in accordance with forest management and chain of custody principles.

PAPERCONSUMPTION

2012 2013 2014 2015

10

15

14

13

12

11

CO

NSU

MP

TIO

N (

RE

AM

S/O

RD

ER

S)

2012

14.47REAMS/ORDERS

2014

11.93REAMS/ORDERS

2013

14.55REAMS/ORDERS

2015

11.24REAMS/ORDERS


METHANEAspreviouslyplanned, in 2012 thewholemonitoringprogramme intended to increaseefficiency in airconditioning and heating systems was replaced and enhanced by means of consumption mapping. In the new monitoring system, the thermostat is set up by a remote computer and the temperature is kept constant thankstosuitablesensors.Alltheofficesandtheareasnotusedarenotconditioned.Whiledesigningthenewplants,theCompanychosetoapplymeasuresofenergeticsavingsuchas:insulation,the use of frames with low transmittancy elements and the use of thermal system at low consumption.

METHANE CONSUMPTION

Higher gas consumption in 2012 and 2013 is justified by the expansion of the offices, creating a greater area to be heated. However, in 2014, consumption significantly decreased. In 2015, it went up again slightly as there were lower overall temperatures countrywide, as shown in the table above.

The indicator is calculated as the ratiobetween the annual consumption of methaneand kilograms of goods shipped during the year by Sambonet Paderno Industrie.

Source: www.ilmeteo.it Source: www.ilmeteo.it

2015 Averageoutsidetemperature (°C)

Consumptionof methanefor heating(1.000 m3)

January 4.0 53

February 5.3 55

March 10.5 40

April 15.9 11

October 13.6 11

November 9.0 21

December 4.2 54

2014 Averageoutsidetemperature (°C)

Consumptionof methanefor heating(1.000 m3)

January 4.3 59

February 6.5 44

March 12.2 27

April 15.4 14

October 15.6 5

November 10.0 20

December 5.1 40

INDICATOR 0.09

2012

319.000 m3

PER YEAR

INDICATOR 0.11

2013

322.000 m3

PER YEAR

INDICATOR 0.08

2014

268.000 m3

PER YEAR

INDICATOR 0.09

2015

285.000 m3

PER YEAR


ELECTRICAL ENERGY CONSUMPTION

INDICATOR 0.853

2012

3.004.000 kWPER YEAR

INDICATOR 1.064

2013


INDICATOR 0.965

2014


INDICATOR 0.986

2015


The indicator is calculated as the ratio between the annual consumption of electrical energyand kilograms of goods shipped during the year by Sambonet Paderno Industrie.

ELECTRICAL ENERGYTheuseoftheartificiallightingsystemissubjecttothemeasurementofinternalbrightnesslevelsthroughcrepuscularsensors.Thesystemiscomputer-based.

Since 2015 it has been carried out a energetic consumption evaluation for the production area through a careful diagnosis. For this purpose, some meters were installed in the energy lines of maximum consumptionandsmallbutsignificantchangesweremade,suchasswitchingoffthemachinesduringthelunch break and switching on the light only when strictly necessary.The energy consumption in 2015 is therefore reduced compared to previous years.

WATERIn the last years, the awareness of people on the importance of water as a limited resource has grown up, as they noted the increase of pollution due to the discharge of not biodegradable substances and to high temperature water coming from cooling systems.Aware of the value of this resource, Sambonet Paderno Industrie has operated in the better rational and ecologic way as possible.The Company keeps on monitoring water consumption, trying to reduce the waste and the water discharge. In order to reach these aims, the Company has realized its own depuration system able to recyclethewater:washingwatersarerecycledinclosedsystems,asexplainedinthefollowingpages,while discharged waters are checked twice a week concerning the values of zinc, nickel, iron and cyanide throughspecificanalysiswithICPandcolorimetricanalysisforthedefinitionofthecyanides.


WATER IS USED FOR TWO DIFFERENT PURPOSES:>civiluse(services,dininghall,changingroom)>industrialuse(forproduction,forcooling)

DISCHARGED WATERS CAN BE DIVIDED INTO:>blackwaters(fromciviluse)> meteoric waters>industrialwaters(forproduction,forcooling)

IN THE PRODUCTION PROCESS WATER IS USED FOR THE FOLLOWING PURPOSES:> automatic system of galvanic silver plating> manual system of galvanic silver plating> digging and pickling process> degreasing tunnel washing system with water solution.

Thesilverplatingsystemrequiresthreewashingsafternickelandsilverplatingtreatment;thefirstoneisprovidedofathrowawaytankandwaterswillbetreatedinachemical-physicalsystemanddischarged,theothertwotanksareincounter-current,sothatthethirdtankfeedsthesecondoneandthislastonefeedsthefirst;thewatersofthesecondandthethirdtanksarecarriedinarecyclesystemonionicexchange.

The hollowing system is made of treatment tanks with nitric acid and of a series of washing tanks. The pickling system is made of a series of treatment tanks with sulfuric and nitric acids and of a series of washing tanks. The tunnel washing system requires a treatment tank in a water solution of alkaline detergent and threewashingtanks:acarpetrunsalongthetanks.Even inthiscasethefirstwashingsarethrowawaywashings (someof thewashingwater is used to reintegrate the treatment tanks). Thewater usedbySambonetPadernoIndustriecomesfromthedraw-wellandfromtheaqueduct.Itispreferablyusedthewaterfromthedraw-well,whilethewateroftheaqueductisusedinbypasstoprovidewaterwhenthedraw-wellwaterisnotenough.Therefluentwateriscarriedinasuperficialwaternatural canal body, the irrigation ditch called Busca, located on the left side of Sesia river.Themaximumflowrateduringsummeris22mc/sec,whiletheminimumflowrateinwinteris0.5mc/sec.

WATER FLOW IN THE SILVERING TANKS

tank 1 tank 2 tank 3


WATER WITHDRAWAL

WATER DRAWN FROM THE AQUEDUCTWATER DRAWN FROM THE WELL

weekly averageweekly average

1.533 m3

PER WEEK

1.416 m3

PER WEEK

1.470 m3

PER WEEK

1.296 m3

PER WEEK

20152012 2013 2014

82 m3

PER WEEK

95 m3

PER WEEK

105 m3

PER WEEK

98 m3

PER WEEK

20152012 2013 2014

annual trend annual trend

2012 2013 2014 2015

20,000

15,000

10,000

5,000

0 m3

FEB.JAN. DEC.NOV.OCT.SEP.AUG.JUL.JUN.MAYAPR.MAR.

2012 2013 2014 2015

200 m3

300

400

500

600

700

800


INDICATOR 0.0017

2015

INDICATOR 0.0013

2012

INDICATOR 0.0017

2013

INDICATOR 0.0015

2014

annual consumption

4.445 m3

PER YEAR

5.466 m3

PER YEAR

4.999 m3

PER YEAR

4.956 m3

PER YEAR

INDICATOR 0.026

2015

INDICATOR 0.024

2012

INDICATOR 0.025

2013

INDICATOR 0.019

2014

annual consumption

73.657 m3

PER YEAR

65.211 m3

PER YEAR

83.990 m3

PER YEAR

85.843 m3

PER YEAR

The indicator is calculated as the ratio between the annual consumption of well waterand kilograms of goods shipped during the year by Sambonet Paderno Industrie.

The indicator is calculated as the ratio between the annual consumption of aqueduct waterand kilograms of goods shipped during the year by Sambonet Paderno Industrie.

22 SUSTAINABILITY REPORT 2015 SAMBONET PADERNO INDUSTRIE

WATER DISCHARGE

COOLING WATER DISCHARGEDWATER DISCHARGED BY THE PURIFIER

weekly average weekly average

257 m3

PER WEEK

237 m3

PER WEEK

250 m3

PER WEEK

254 m3

PER WEEK

20152012 2013 2014

1.267 m3

PER WEEK

1,056 m3

PER WEEK

978 m3

PER WEEK

866 m3

PER WEEK

20152012 2013 2014

annual trend annual trend

2012 2013 2014 2015

1,500

1,000

500

0 m3

2,000


2012 2013 2014 2015

15,000

10,000

5,000

0 m3

20,000


annual consumption

13.416 m3

PER YEAR

12.365 m3

PER YEAR

12.164 m3

PER YEAR

12.245 m3

PER YEAR

INDICATOR 0.0038

2012

INDICATOR 0.0041

2013

INDICATOR 0.0038

2014

INDICATOR 0.0039

2015

INDICATOR 0.020

2012

INDICATOR 0.020

2015

INDICATOR 0.019

2013

INDICATOR 0.015

2014

annual consumption

71.376 m3

PER YEAR

63.750 m3

PER YEAR

48.097 m3

PER YEAR

54.904 m3

PER YEAR

The indicator is calculated as the ratio between the annual quantity of water discharged by the purifierand kilograms of goods shipped during the year by Sambonet Paderno Industrie.

The indicator is calculated as the ratio between the annual quantity of discharged cooling waterand kilograms of goods shipped during the year by Sambonet Paderno Industrie.

BILANCIO DI SOSTENIBILITÀ 2015 SAMBONET PADERNO INDUSTRIE 23

DISPOSED WASTE

348 t

2012

77%

23%

NON-HAZARDOUS

HAZARDOUS

485 t

2014

83%

17%

NON-HAZARDOUS

HAZARDOUS

377 t

2015

90%

10%

NON-HAZARDOUS

HAZARDOUS

315 t

2013

77%

23%

NON-HAZARDOUS

HAZARDOUS

WASTEThe Company is responsible when it comes to recycling. A major part of products are recyclable (scrap, wood,cardboard...).In 2015, total waste disposal decreased from the previous year by 22.39%.Whenexaminedindetail,it’spossibletonoticethatnon-hazardouswastedisposalhasincreased(+7.04%),whilehazardouswastehasbeencutinhalf.ThisresultisbecauseoftheimplementationofRegulation1357/14andtheEU2014/955decision,whichhascausedareclassificationofwaste,givingaEWCcodeto each category and consequently causing some changes. For example, activated carbon and various other washing solutions, previously considered hazardous, are now considered non-hazardouswaste.Thereremain,however,dangerousoils,mudsandoilyemulsions;thelattershowingasignificantdecreasefrom 2014.Regarding non-hazardous waste, the pie charts show a decrease in paper and cardboard containerdisposal. This is a positive sign, considering the relationship between the tons of products in 2015 and those disposed of in the same year, equal to about 44%. In the previous year, there was a strong increase in paper and cardboard disposal thanks to the reorganization of the warehouse, leading to a series of extraordinary disposal.There was also a decrease in tons of disposed plastic packaging, paint sludge, abrasive dust and brushes. Looking at the charts, you can see an increase in disposal of plastic shavings and turnings, going from 8.96% in 2014 to 9.56% this past year and regarding scraps of steel, aluminum and nickel silver, arriving at 43.79% caused by recovered production, but which can then be resold.Belowisthelistofhazardousandnon-hazardousdisposedofwastefrom2012-2014.


NON-HAZARDOUS WASTE

2013

2014

2015

2012

12.67% WASTE AQUEOUS SOLUTIONS

0.96% SATURATED OR EXHAUSTED ION-EXCHANGE RESINS

0.89% PAINT SLUDGE, ABRASIVE POWDER AND BRUSHES

0.47% DISCARDED EQUIPMENT

0.03% COMPONENTS REMOVED FROM DISCARDED EQUIPMENT

OTHER15%

20.77% PAPER AND CARDBOARD PACKAGING

2.95% MIXED MATERIAL PACKAGING

0.14% PLASTIC AND METAL PACKAGING

PACKAGING23%

44.21% SCRAPS OF STEEL, ALUMINUM, BRASS AND NICKEL SILVER

16.91% FERROUS METAL FILINGS AND TURNINGSMETALS61%






0.01% ALKALINE BATTERIES

OTHER14%




PACKAGING35%

44.41% SCRAPS OF STEEL, ALUMINUM, BRASS AND NICKEL SILVER

6.83% FERROUS METAL FILINGS AND TURNINGSMETALS51%




PACKAGING51%

OTHER6%






METALS43% 34.05% SCRAPS OF STEEL, ALUMINUM, BRASS AND NICKEL SILVER

8.48% FERROUS METAL FILINGS AND TURNINGS


0.04% PLASTIC AND METAL PACKAGINGPACKAGING45%

OTHER2%





METALS53% 43.79% SCRAPS OF STEEL, ALUMINUM, BRASS AND NICKEL SILVER

9.56% FERROUS METAL FILINGS AND TURNINGS


HAZARDOUS WASTE

2012

2013

2014

2015

11.43% SPENT ACTIVATED CARBON

7.33% EXHAUSTED OIL EMULSION

1.46% ORGANIC WASTE CONTAINING HAZARDOUS SUBSTANCES

1.22% WASTE MACHINING OILS FREE OF HALOGENS (NOT EMULSIFIED)

0.48% LEAD-ACID BATTERIES

0.13% WASTE PAINT AND VARNISH, PROTOTYPING MACHINE LIQUID,

SAWDUST IMPREGNATED WITH OIL, ABSORBENT MATERIALS

(FILTERS), FLUORESCENT TUBES AND OTHERS WITH MERCURY

OTHER22%

77.95% SLUDGES FROM ON-SITE EFFLUENT TREATMENTSLUDGES78%




0.26% DISCARDED EQUIPMENT CONTAINING HAZARDOUS COMPONENTS




OTHER19%




0.76% LEAD-ACID BATTERIES





OTHER14%



4.72% ORGANIC WASTE CONTAINING HAZARDOUS SUBSTANCES



0.37% ANTIFREEZE LIQUIDS CONTAINING HAZARDOUS SUBSTANCES

AND BITUMINOUS MIXTURES CONTAINING COAL TAR





OTHER24%


The Company carries out the separate collection with sense of responsibility and, in addition, most of the waste is recyclable (scrap, wood, cardboard). Sambonet paderno industrie promotes every year investments aimed to reduce the production of waste, such as replacing wooden pallets with plastic ones, which are stronger and more easily reusable, or purchasing cardboard shredder machines, to reuse the material as packaging.

26 SUSTAINABILITY REPORT 2015 SAMBONET PADERNO INDUSTRIE

PACKAGINGTheparcel,thatistheprimarypackagingcontainingthefinishedproduct,ismadeofcardboardpunchedboxes,putonaplasticorwoodenpallet(europallet),inordertofacilitatemoving.Theparcels,properlypiledup,aretiedtothepalletthroughplasticstrapstringthenwrappedinextensiblefilm.

The materials chosen for the product packaging are completely recoverable. They are not contaminated by substances which require draining before use and they can support different compaction which optimize pickingupandtransport.Consequentlytheenvironmentalimpactisnotsignificantandthisaspectisnotconsiderable.

ForSambonetPadernoIndustriethepackagingrepresentsoneofthemainandmostefficientchannelofcommunication between the Company and the customers, besides performing the important function of protect the products. The packaging provides all the essential information concerning the raw material used for the manufacturing of the items, their use and maintenance, and has a basic role in design and in the appeal able to attract the customers.The pallets used by the Company are made both of wood and of plastic, although the wooden ones will be replaced by the pallets made of plastic. These new pallets are more light, more resistant and can be used different times, so they are more lasting and they have less impact on the production of waste. 43,548 Euros were spent in 2012 to buy 4,500 plastic pallets.

WASTE FINISHED PRODUCTThefinishedproductsdon’thaveany featuresable to representanysanitaryorenvironmental risk,asthey are made of inert material. The use of these products does not involve any problems for the safety of the users and the product disposal carried out by scrapping does not involve any problems about the separation as these items are inert material too. So there are not considerable elements concerning the useandthedisposaloffinishedproducts.

Concerningtheelectricalequipment,theCompanyhascarriedoutasubscriptiontoAPIRAEE,incompliancewith theWEEE legislation (D.Lgs25/07/2005n151),withsubscriptionnumber: IT09070000006180of24/07/2009.

the factory warehouse in orfengo


THIRD PRINCIPLE3 EFFICIENT USE OF NATURAL RESOURCESSambonet Paderno Industrie continuously strives to reduce its energy consumption and takes measures mainly intended to optimise its business processes. For this reason, the Company undertook a path which ledtotheobtainmentofthenewUNIISO50001:2011energycertificate.TheCompanyhasadoptedacomprehensive approach in every manufacturing department to identify solutions allowing the reuse of resources.The following table shows changes in thermal and electrical energy consumption for production purposes in 2012, 2013, 2014 and 2015.

The Company always aims to avoid waste in all areas of the plant and its attention is focused on their continuingminimization.Quarterlyreviewsareorganizedtodefineimprovements.IntheplantthereisanEnergySupervisorwhoweeklyverifiesanypossibleoverconsumptionandsharesoptimizationplanswiththe staff.

MATERIALSThe Company resources have been focused on the minimization of the amount of raw materials used in the industrial process. Sambonet Paderno Industrie uses, as main raw materials, materials with low contents of energy and with reduced presence of dangerous substances, as stainless steel, nickel silver and aluminum, and pays always more attention to the materials of the products sold. Furthermore, designing a new item, the Company evaluates the aspects of shape and thickness of the components which are intended to be utilized in the production in order to reduce the volume of the materials used. In the choice of the raw materials, the Company considers the use of recycling materials as a surplus value.

SambonetPadernoIndustriepromotestheProductLifecycleManagement(PLM),astrategicapproachtothemanagementofinformation,processesandresourcemanagement,fromthefirstdesignphasetothemoment of its launch into the market or of a possible withdrawal.Togiveanexample,aluminumwastesarere-soldtothesupplieroftherawmaterial,whomanagestoreintroduce it in the working process and in the market.

E L E C T R I C A L E N E R G Y 0 %

2012

- 4%

-8%

2013

+16%

+1%

2014

-16%T H E R M A L E N E R G Y

-3%

2015

+3%

ENERGY CONSUMPTION


WATER RESOURCESThe water consumption is checked by monitoring and rationalizing the water used for the supply chain, concerningwashingsinparticular.Inthedepartmentstherearefivewashingtunnelsproperlyconceivedtosavewater:“new”waterisrequiredonlyforthefinalstepofthewashing.Thedischargeofthiswatercontaining traces of cleaning agent feeds the previous step, which discharge, that contains more detergent ofthefirstone,atitsturnfeedsthepreviousstepandsoon,recyclingthewatertillthelaststep,inwhichthedischargeischanneledtothepurificationplant.The purication plant provides two types of treatment, one for the water recycle and the other one for water disposal.Recyclingwaterswillbesenttoasystemwithaflowof20m3/h(2,000L)wheretheysufferatreatmenton resinat ionicexchange (cationic resin,anionic thin resin,anionicstrong resin).Theplanthasbeenorganized in double line to guarantee the continuity of the process, and it receives and re-supplieswashingwatersofsilveringsystem(automaticandmanualones),oftunnelwashingsystem(ofHolloware-Cookware,Flatware,CheckingDepartment)andofthehollowingandpicklingprocess.The waters to be discharged are conveyed towards a systemwith lower flow (5m3/h) and they aresubmittedtoachemical-physicaldepurationtreatmentthatrequiresthefollowingsteps:

> oxidation of cyanides with sodium hypochlorite;>post-Oxidationofcyanideswithoxygenizedwater;> oxidation of Fenton with iron 2 salts and oxygenized water for the dust lying of organic substances;> coagulation with iron salts 2 to facilitate the formation of precipitate;> neutralization with hydroxide of calcium to dust lying metals through hydroxides precipitation;>flocculationwithpolyelectrolyte;> decantation of sediments;>finalfiltrationonsand-quartziteandactivatedcharcoal.

Theplantworksontherefluentofthesilvering(bothautomaticandmanual),thewashingtunnelandthehollowing and the pickling processes.

ENERGETIC RESOURCESThe Company believes in clean energy and it has demonstrated this with the choice of its electrical energy suppliers. Indeed Sambonet Paderno Industrie has a single electric energy supplier that has beenawardedtheCO-FERcertification,testifyingtotheuseofrenewableenergysourcesforICO-FERelectricity production plants.TheCO-FERtitle isacertification, issuedbytheGSE(EnergyServicesManager),certifyingrenewableoriginofsourcesbythequalifiedplantICO-RESforelectricityproduction.FollowingapprovalbyMiSE for the“Procedure for the identificationofplantspoweredby renewablesourcesand the issuingandmanagingof theGarancyofOrigin (TechnicalProcedure)”,drawnupbythe GSE as stated in article 31, paragraph 1, of the ministerial decree of July 6, 2012, from 2013, GSE issuestheGuaranteeofOrigin(GO)insteadoftheCO-FERtitletocertifythequotaofelectricalenergyproduced by renewable sources, in accordance with article 15 of the directive 2009/28/CE.The electrical energy supplier is CVA Trading. From January 1, 2014, following a merger with the Vallenergie company, which was already a part of the CVA Group, CVA Trading became the service operator of the territorially competent Maggior Tutela. Its energy comes 100% from renewable sources.


Toincreasetheefficiencyandreducewasteofthecoolingandheatingsystems,theCompanyhasinstalledasystemoffancoilunit.Thefancoilunitdrawstheairoftheenvironment(tobecooledorheated),theairisfilteredandthenpushedtowardsthebatteryofthermalexchange.Intheofficesbuiltin2012,heatcollectors have been added to try to maintain temperature of the air before putting it outside in order to usetheheattopre-heatingtheairowinentrance.Thisairflowexchangestheheataccumulatedwiththewaterthroughaforcedconvection:incaseofheating,theheatwillbedrawn,whileincaseofcoolingitwillbegiven.Whencoolingair,thisairwillbealsodehumidified,creatingacondensationwhichwillbecollected in the small basin put on the bottom.

Both electric and heating systems are completely managed by a monitoring system. Thanks to this system,theunusedofficeswillnotbelightedandheated.Furthermorebothlightingandheatingsystemsare turned off during the Company closing. Each workplace is provided with a thermostat controlled by thesupervising:asensorregisterstheenvironmentaltemperatureandmanagestomaintainthecorrecttemperature.

Thelightingsystemalsoincludeshigh-efficiencyelements:thewholecorporateplantisequippedwithtwilight sensors that automatically switch lights on and off based on natural light.

The oldest buildings were realized just in 2001 and have been equipped with heat insulation walls.

FOURTH PRINCIPLE4 MONITORING AND REDUCTION OF ENVIRONMENTAL IMPACTSSambonet Paderno Industrie constantly invests in monitoring and reducing environmental impacts.The Company did not have to implement a biodiversity mapping system at the operating sites through specificmeasures (eg. protection of endangered species habitats, protection of water resources andforests,etc.)sinceitissituateddirectlyontheregionalroad(N.11),PadanaSuperiore,whichconnectsNovaratoVercelli.JustacouplehundredmetersawayistheentrancefortheA26Voltri-GravellonaTocehighway. It is situated 30 meters off of the regional road. In the open space between the road and the plantthereisa5,850mqrecreationalareausedforsportsfieldsandpublicparking.


WASTEWATERDischargedwaterscoming fromthepurificationplantaresubjected toaconstantmonitoring: thePHand the temperature parameters are checked and corrected, if necessary. The presence of metals in the discharged waters is monitored by means of weekly internal analyses and quarterly analyses performed by external laboratories. In 2011 the Company invested in the set up of a new internal laboratory, buying last generation instruments in order to make different kind of tests. In particular, the Company bought an ICP for the analysis of the metals, which allows to quickly test the discharged water. Twice a week the technicianofthelaboratorycollectsthesamplesofthewatersfromdifferentpointsofthepurificationplantandfromthefinaldischargeandhecarriesoutthetests,enteringtheresults.The Company is proud to communicate that in November 2013 the internal laboratory ASEC Lab obtained the accreditation by Accredia, the Italian Accreditation Body. Accredited testing methods also include the analysis of wastewater, providing an additional guarantee in wastewater control.

PRODUCTIONSambonet Paderno is a metalworking company that also performs welding operations. An example of investment within this strategy is the purchase of a zero impact welding machine, which is supplied by a water electrolysis system. Water is decomposed into oxygen and hydrogen, i.e. a gas mixture obviating the need for tanks of pure elements. The mixture of oxhydrogen burns at high temperatures and generates water vapour, thus marking the end of a cycle with no environmental impact.

TURNOVER INDEXTheinventoryturnoveristhenumberoftimesinventoryisusedinatimeperiod(usuallyayear),allowingtheCompanytorecoverthefinancialresourcesinvestedininventory.Itiscalculatedastheratioofthevalue of goods sold to the average inventory value. Inventory turnover is useful not only to monitor ordersforlow-turnoverinventory,butalsotopreventwastingmanufacturingresources.Acarefulstocksmanaging allows to plan production in a responsible way. In order to raise the level attention on this issue,monitoring inventory turnoveroffinishedgoodswas included in the2012performance relatedpay, the target being 1.85. In 2012 its value increased from 1.62 to 1.75, testifying to the effort made to schedule manufacturing and purchases wisely. As shown in the table below there is an ongoing positive performance in relation to this aspect.

Year Turnover index

2012 1.79

2013 1.84

2014 1.85

2015 1.85


FIFTH PRINCIPLE5 FOCUS ON INNOVATIVE TECHNOLOGIESEven designing the new buildings in 2001, Sambonet Paderno Industrie made a choice oriented towards innovation, both in the use of renewable energy, and in the use of investments aimed to obtain a greater energeticefficiency,throughthetechnologiesabovementioned(invertersystemandtimersforautomaticswitchingoff,systemofintelligentlightingandinsulationforheatdispersions).

The Company has decided to invest in the production of items embodying innovation and highlighting the energy and environmental features of the raw materials used.In 2012 theCompanypresented its first ecodesign collectionwhich uses a compositionof bamboofibre,aninnovativematerial,eco-friendlyandbiodegradableand,in2013,introducedacookwareseriesentirelyinterracotta.Theecologicalandhealth-conscioussoul,thebasisofthiscollection,isdevelopedin all its forms, from the product to the packaging.

Terra.cotto cookware (on top)

and Linea q bamboo tray (bottom).


SIXTH PRINCIPLE6 PRODUCT STEWARDSHIPAs pointed out in the introduction, Sambonet Paderno Industrie effected an analysis of environmental aspects relating to the different product life cycle phases through the use of renewable and recyclable materials, the attention to the requirements of durability, easy maintenance, interchangeability and standardization in design. Each product is equipped with information material on proper use and proper disposal.

SEVENTH PRINCIPLE7 PRODUCTION CHAIN STEWARDSHIPAccording to the aim to develop a responsible business model concerning the production process and the subjects involved, Sambonet Paderno Industrie applies precise methods of products and services supplying. Every Company partner is considered according to the Company own Environmental Management and will be invited to share the Paper of Principles.In2001theCompanyalsosetoutacodeofconductforsuppliersandsub-suppliers(Codeofconductforexternalmanufacturesandworkshops)inordertoconveyitsvaluesthroughoutthesupplychain.TheCode was based on some criteria requiring suppliers to run their business from an ethical, responsible andenvironmental-friendlyperspectiveandtotreatalltheworkersinvolvedinthesupplychainproperly.Thepurchasingproceduresfavoursustainableproductsaswell(GreenProcurement).The Company has further implemented the use of telecommunications for remote activities, thus reducing theneedfortravels.Asaresult,therehasbeenagrowinguseof:

> video conferences;> distance training;> telework systems;>certifiedemail.


Furthermore there have been bought new servers for the Company in order to implement a new system of data storage. The Company has been using three NetApp machineries. Able to generate a consumption that is independent from the quantity of servers used, that is an innovative solution compared to the previous ones. In fact all the data are managed in a virtual environment where it is possible to create, manage and cancel any server in a simple way, if necessary.Technical sheets of the storage show are complete concerning consumptions, giving a precise indication oftheconsumptioninWatt(W)ofboththemodelsofNetApp,twoFAS3140andoneFAS2040.

Model Single power supply Double power supply Maximum

FAS 3140 Power, W 291 581 712

BritishThermalUnit,BTU/hr 991 1.981 2.427

FAS 2040 Power, W 4471.524

464

BritishThermalUnit,BTU/hr 1.582

Even taking into examination the worst scenery with the maximum consumption for all three storage, there will be a total consumption of 1.888 W, always under the threshold of 2 kW. All consumptions have beentakenintoconsiderationwithfeed200-240VAC.Both the models of NetApp used comply with different standard of security and emissions, here below listed:

FAS 3140

Safety:EN60950,CE,CSA60950,UL60950,CBIEC60950-1(allnationaldeviations),EN60825-1,GOST-R

Emissions / Immunity:FCCPart15ClassA,ICES-03,CE,BCC,VCCI,AS/NZSCISPR22,EN55022,EN55024,EN61000-3-2,EN61000-3-3

FAS 2040

Safety:EN60950,CE,CSA60950,UL60950,CBIEC60950-1(allnationaldeviations),EN60825-1,GOST-R,BSMICNS14336,CCCGB4943-2001,SABS,SResolution92-98

Emissions / Immunity:FCCPart15ClassA,ICES-003,CE,MIC,VCCI,AS/NZSCISPR22,EN55022,EN55024,EC61000-3-2,IEC61000-3-3,CoC(SouthAfrica),BSMI,KN22EN61000-4-2,EN61000-4-3,EN61000-4-4,EN61000-4-5,EN61000-4-6,EN61000-4-11,KN24,CISPR24

Before adopting this NetApp system, there was a “Blade server” of HP type “HP BladeSystem C7000 Enclosure”whichproducedaveryhighlevelofconsumptioncomparedtothisnewone:theconsumptionindomainofthree-phasepowerwas2.250W-2.400Wforeachphase,withatotalof6.750-7.200W.Itwasabout three times superior towards actual consumption.Currently there are 35 virtual servers active on the NetApp systems. Assuming they were 35 physical PC with 500Wpowersupplies(althoughinrealityaserverconsumesmorethananormalPC),thetotalconsumptionwould be 17.500 W, equal to almost nine times the current consumption.


EIGHTH PRINCIPLE8 AWARENESS RAISING AND TRAININGThe Company believes in the involvement of human resources on environmental sustainability objectives.The instruments adopted to achieve this aim are awareness raising and training, through frequent meetings throughout the year; delivery of the business system policy in the payroll of December 2014 and posting this policy in all corporate pin boards.

During the year, following a schedule agreed with the managers of the various areas, introduction of legislative changes, employee awareness raising, integration of new employees and/or changes in duties are accompanied by appropriate corporate training. This effort results in constantly monitoring and recordingeverystageoftheprocessandtheefficacyoftrainingoneveryemployee.

Humanresourcesaremonitoredduring thecourseof theiractivitiesandencouragedthroughspecificlines of the pay bonus. The Company’s main goal is to create a corporate culture that actually takes into account sustainability and environmental protection. Inthefaceofaslightdecreaseinstaffduring2015,therehasbeena46.13%significantincreaseofhoursdevotedtotraining.Thisamountstospecifically2.855totaladditionalhoursthatequaltoanaverageof11 additional hours of training per person in comparison to the previous year. In particular, the training thattookplaceduring2015dealtwithcompanycertifications(environmental,energy),healthandsafetyof workers and employees. The positive trend of training hours underlies the attention that the Company places on this issue.

TOTALTRAINING HOURS

EMPLOYEESTRAINING HOURSPER EMPLOYEE

2012 6.8 h/person263 1.800 h

2013 11.3 h/person257 2.900 h

2014 12.3 h/person270 3.334 h

23.4 h/person265 6.189 h2015

TRAINING


NINTH PRINCIPLE9 TRANSPARENCY WITH STAKEHOLDERSThe promotion of its own environmental eco-sustainable policy is managed by drafting reports andenvironmentaldeclarationsandbydrawinguptheSustainabilityReport.

A positive role in the community: the Company’s commitment to environmental values and localcommunitiesisputintopracticewithjobcreations,benefitsforlocalsuppliers,distributorsandpointsofsalesandthere-useandrecyclingofpackagingmaterials.The Company’s interests are tightly related to the ones of the communities where it works and it is involved in, in quality of employer, customer, supplier and contributor at the same time. The Company considers the sustainable development as the main pillar to build a continuous process of improvement able to guarantee the increase in the Company economic performance. A growing up and well managed activity has a positive impact on the general economic development as it creates new workplaces, gives an economic contribution and assures greater investments in the communities and in the local economies.

Concentrating on its business and the local community, Sambonet Paderno Industrie has decided to focus its efforts on responsible consumption, local community investments and environmental safety. When it comes to supporting the local community, Sambonet Paderno Industrie fully embodies the vision that relates to its philosophy of Italian industry springing from a supportive spirit. Making a positive contribution is the goal in order to improve the quality of life in the surrounding communities. The Company makes the minimization of environmental impact during production a daily commitment.

TENTH PRINCIPLE10 CONSISTENCY WITH INTERNATIONAL POLICIESSambonet Paderno Industrie acknowledges the value of constructive collaborations with its suppliers in ordertosecurehigh-qualityrawmaterials.Once the suppliers are selected, they are involved in collaborative programs and, if necessary, support programs,throughthetransferoftechnologyandknow-howintheenvironmentalfield.Thisisrealizedthrough the participation in updating events on process and product innovation and in development projects about environmental issues.


TRANSPARENCY AND ETHICSBy establishing transparent and ethic relationships with its suppliers and stakeholders as far as business is concerned, Sambonet Paderno Industrie implemented its Code of Ethics back in 2011. The adoption of clearguidelineshascontributedtodefineandpromotethevaluesandthebehaviouralrulestheCompanydeems fundamental for its conduct.

ORGANISATIONAL MODELSambonet Paderno Industrie has decided to comply with the dispositions of D.Lgs 231/01 which regulates the“AdministrativeResponsibilityoftheCompany”toenforcethesystemofinternalcontrol,andinthemeantime increase the resources awareness about the above mentioned topics in order to prevent crimes. SambonetPadernoIndustriehasadoptedaspecific“ModelofOrganizing,ManagementandControlexD. Lgs 231/2001” as a complete set of rules aimed to regulate the internal working of the Company, the internalcontrolandthewaystheCompanyreportswithexternal.OneofthemostsignificantpartofthisModelistheEthicalModel,thatidentifiesthevaluespursuedbytheCompanyandpointsoutthewholeset of rights and duties of the people working in the Company or with the Company. Furthermore the Code promotes an elevated standard of internal professionalism and interdicts any behaviour which is in contrast with the rules and the values of the Company. Each employee, from the administrators to the staffmanagement,theofficeworkers,thesalesrepresentatives,theconsultants,thesuppliersandthecommercial partners, and all the people working in collaboration with the Company have been asked to respect the Code and its contents.

SUSTAINABLE DEVELOPMENTThe Company has adopted an approach of sustainable development based on strategic priorities. Sambonet Paderno Industrie thinks that the most important contribution towards the society is the production of high quality items, which the consumers are able to identify and appreciate.Besidesthat,theCompanypursuesmanyotheraims:creatingnewworkplaces,contributingtothegeneraltaxation, increasing human capital showing how the growth in business and the sustainable development could feed and enforce themselves each other.The Company approach to sustainability represents a responsible attitude and produces positive effects inbusinessintermsofprofitandeconomicgrowth.That’swhyitisconsideredasasignificantpillaroftheCompany’sphilosophyandguidesallitsactivities:fromthechoiceofrawmaterialstothefinishedproduct.

HUMAN RIGHTSA culture of openness has been promoted within the Company with a view to prevent any form of discrimination in respect of employment and occupation and to ensure that all employees are valued and treated with dignity. The Company has also committed to create a safe working environment for the people.In2006SambonetPaderno Industriehasobtainedthecertificationaccordingto thestandardOHSAS18001:thiscertificationgivesanevidenceofthecommitmentinrespectingtherequirementsofhealthand safety at work, even more strict compared to the requirement provided for by Italian law. Sambonet Paderno Industrie constantly aims to increase the level of health and safety on the workplace through the definitionoftargetsthatcanbereached.Embracing this ethic, the Company achieved the injury rates presented at the following page.


Overall, the indicators show an improvement trend, considering increase in personnel. In 2015, there were four accidents, one being a commuting accident, over the span of 60 days. It should be noted that by deducting that commuting accident, the Frequency Index decreases to 0.66, the Severity Index to 0.037 and the Incidence Index to 1.13.This result should be compared to the sectoral Incidence Index provided by the INAIL database. As shown inthetablebelow,thefigurewas1.35%in2013and2.19%in2014;in2015,theCompanyobtaineda1.53% Incidence Index, or 1.13% if excluding the commuting accident.

I.F. FREQUENCY INDEX I.G. SEVERITY INDEX

0

0.5

1

2013 2014 20152012

I.F. = (total number of injuries * 100,000) / hours workedI.G. = ((total days of injuries + (sum of annuity rates * 75)) * 1,000) / worked hoursI.I. = total number of injuries / number of employees

INJURIES

Total number of injuriesTotal days of injuryAverageinjuryduration(days)Average age of injuredFrequencyindex(I.F.)Severityindex(I.G.)Incidenceindex(I.I.)

3158

52.7038.300.660.340.01

18

8.0038.000.210.020.00

477

19.3049.500.880.171.51

N° 0

2012 2013 2014 2015

Year N. of injuries N. of employees Incidence index

2013 8 593 1.35

2014 13 593 2.19

Table with data provided by the INAIL database, referred to the entire national territory and for the specific business sector (Ateco category C 25710).


CONCERNING HEALTH AND SAFETY AT WORK,SAMBONET PADERNO INDUSTRIE COMMITS ITSELF TO:

> working in compliance with the laws, the rules and the applicable national and Community directives, as well as with all the requirements and the obligations undersigned by the Company to the stakeholders;

> sharing the policy about safety with all the employees and the stakeholders;

> introducing and keeping updated the procedures of management and security in order to monitor health and safety of the employees;

> developing programs, objectives and targets and investing in human and economic resources in order to reach these goals;

> increasing awareness and training involving all the workers, making them aware of their individual duties and of the importance of each action to reach the aims and of their responsibilities concerning safety and health in workplaces;

> managing todefinebehaviours andworkingprocedures in order to reduce accidents atwork andoccupational disease;

> identifying and monitoring dangers related to the different activities located inside the plant and valuing the risks for the health and the safety of the workers;

> evaluating pre-emptively the risks for the health and the safety at work related to organizational,technical and procedural changes;

> making suppliers more aware and ask them to respect this policy, the laws and the procedures concerning the safety;

> trying to promote continuous improvement concerning the management of safety and health at work;

> increasing workers awareness and giving them a sense of responsibility at all levels, even through training and sharing information;

> promoting a cross communication among all the different roles in the Company, in order to improve the performance of the management concerning safety and health at work;

> promoting and stimulating the dialogue based on the collaboration with the civil society, the local offices,thetradeassociations,thecompetentauthoritiesandthestakeholdersandeveryoneinterested,in order to let everyone know the way the Company operates concerning the safety and the health at work;

> periodicallyre-examiningtheevaluationoftheriskregardlessoftheoccurredchanges;

> periodicallymakingare-examinationofthispolicyandofthemanagementofthehealthandthesafetyat work to verify and assure their congruence, propriety and being properly applicable the organization, aswellastoverifytheeffectivenessoftheirperformancesandlettheCompanypromoteare-formulationof the targets for improvement.


SOCIALPERFORMANCEServiceefficiencyhasincreasedaswellascustomerinvolvementinthesharingofthesocialvalueoftheservice. With this awareness, the Group has carried out many sustainable projects and many more are being planned for the future.

EXTERNAL STAKEHOLDERSSambonet Paderno Industrie’s significant commitment to the development of initiatives regardingstakeholder involvement is a structural element within the modus operandi. Over the course of 2015, 147 clients visited the factory. They had the opportunity to see the production site. This activity was carried out with a spirit of collaboration by the managers in order to be able to provide customers with glimpse into the production process and creation and improvement of its products. Overtheyears,severalprojectswerecarriedouttoinvolvethecommunity,schoolsandsupportsocio-pedagogicalinstitutions.Forexample,the“ProgettoScuole”workedwiththeICIF-InternationalSchoolof Italian Cuisine. This resulted from a partnership between the Institute and the Company tied to Paderno kitchen supplies. Throughout the year, the school made seven visits – on a total of 120 students – during which the entire production cycle was explained and demonstrated while visiting all departments on site. Another visit came from 75 students from Ballerini School of Hospitality.During 2016, the Company will continue its collaboration with the Institute and, in order to accommodate the largest number of chefs and future chefs, the Company will enter into new partnerships.

In 2015, Sambonet Paderno Industrie joined the “Piedmont Social Food & Wine”, a regional project dedicated to the promotion of Piedmont, supported and funded by the Local Tourist Agency of Novara. TheCompanywasincludedinadaytouraimedatsmallgroupsofbloggersandinfluencersoftourismandgastronomygatheredbytheRegionandbyATLNovara.Theprogramofthelasttwodays(December10and15,2015)includedavisittothecityofNovara,astopby Camporelli to see where “Biscottini di Novara” are produced and a visit to Agricola Cascina Fornace inVespolate(riceproducer);thePalzolainCavallirio(gorgonzolaproducer),theLePianediBocawinery(wine),asausagefactoryandacookingclassattheImperodiSizzanorestaurant.

INTERNAL STAKEHOLDERSSambonet Paderno Industrie directs its action towards principles of human resource management, recognizing the importance of the individual within the organizational system and considering personal involvement an essential resource to better facilitate integration between company goals and employee expectations.

Since the realization of the current production site, areas for workers have been projected, such as in internal gym with its personal trainer for workers training and a polyfunctional camp available on request for sport activities.Internal communication and company IT applications are the basis of all projects that the Company has putinplaceinordertoenhanceinternalinformationflow.

Amongtheprojectsintroducedinrecentyears:

> Intranet, an internal network for the Company, allowing files to be shared by different operators,facilitating internal communications.

> News and Newsletters. Newsletters are published monthly on the website. They include news concerning the Company, fairs, products, design, catalogues and collaborations of the different brands belonging to the Group.

> Greetings from Management. To celebrate the Christmas holidays, management organized a small meeting to raise a glass and share the results of the past year. The event “Greetings from Management” took place on Friday, December 18th and the Company threw a Christmas lunch party for all the staff.

> Open day. On December 19th, the Company opened its doors to employees’ friends and relatives. Over 350 people were present. Nine groups visited the internal production cycle by going through all departments on the site.

> Tester Chef. Already in its third edition, this initiative allows interested employees to “test” certain products. Following its test, the product will be reviewed. This allows for a new point of view to be shared that offers new ideas and adds to the constant improvement of the Company’s production.

Thefocusonthelocalareaanditscommunityisdemonstratedthroughfinancialcontributionstoschools,associations, local communities and parishes. Alongside national charity operations, in 2016, the Company will pay special attention to local initiatives.

Within the employee training program, the Group follows an annual formation program arranged by the various managers and based on employee need for formation and information.For the energy certification course, held fromNovember 24th toDecember 1st, 2015, an evaluationquestionnaire was given at the end of the course. From this questionnaire, employee ideas and expectations to improve the business organization emerged.

Themostinterestingideas:> updating and sharing of achieved goals with employees;> more collaboration between employees and the Company;> more frequent formation courses;> communication;> collaboration and union;> team spirit, feeling part of a group, common goals;> employee involvement and enhancement;> mutual trust.

For2016,theCompanyhasalreadystartedplanningdifferentinitiativesandprojects,amongwhich:

> “The idea is yours, security for everyone”.Aboxpositionedindifferentpointsoftheofficestocollectideas that would improve health conditions, safety and the work environment.

> “Health project”. A project that was born from the collaboration with ASL of Novara to increase employee awareness about healthy eating habits.

> “Brain storming”. Meeting with interested employees from time to time to discuss various issues. The firstmeetinginvolvessocialnetworkingandonlineshoppingenthusiastsinordertocomeupwithnewideas concerning the strategy and operation of the company website.


SAMBONET PADERNO INDUSTRIE S.P.A.

S.R. 11, Km 84 - 28060 Orfengo (NO) - Italy

T +39 0321 879 711F +39 0321 879 811

www.corporate.sambonet.it

2015 sustainability report

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