Corporate Social Report
Transcription
Corporate Social Report
CSR Corporate Social Report Fiscal Year 2012/2013 SandenVendo Europe S.p.A. “Cresciamo con saggezza e prosperiamo in armonia” 2 Index Analysis of Social dimension CEO speech Sanden Group Sanden Global Network Sanden Forest Profile of the Company SandenVendo Group SandenVendo Europe History recap of SandenVendo Europe Our Company: SandenVendo Europe Coniolo Casale Monferrato Guidelines Reference guidelines Philosophy Society Philosophy Quality Policy ISO 9001 STQM Vision of Quality Small group activity STQM conventions Environmental Policy ISO 14001 Quality Vision Policy of SandenVendo Europe Organization chart Personnel Employment categories Employment turnover Employment ageing Authorizations Training courses Accidents at work place SandenVendo for the Social Community issues and relationships The Community Social Days Park maintenance Business performances Turnover and Production Cost of Personnel Environment Performances Methodology and result analysis Environmental impact of our products New plastic bases for Finished Goods New CO2 for Refrigerant System New led lighting on G-products Environmental impact of our Company Asbestos removal from roofs New rainwater pool 3 CEO speech President introduction of SandenVendo Europe S.p.A. CSR (Corporate Social Responsibility) SandenVendo Europe located in Coniolo (AL), Italy, is part of the Japanese multinational company Sanden Co., with the Headquarter in Tokyo – Japan - producing air conditioning compressors as well in vending business; the company has 53 subsidiaries all over the world and employs more than 9000 people. The Sanden Group instituted its Corporate Philosophy in 2003, on the 60th anniversary of Sanden’s founding. Our conception of CSR means successfully putting this philosophy into practice—each Sanden employee is striving to apply the Corporate Philosophy and thereby realize rigorous CSR standards in his or her daily activities. SandenVendo Europe under the parent company instruction started its own CSR activity in the last years, and in 2013 we are able to provide our first CSR report concerning our activities. We deployed the Sanden philosophy and enhanced the company principles issuing Ethic Code for all our employees. We take particularly care of safety of our workers respecting the rules and requirements requested by the Italian laws, and we make all the efforts to assure to our employees environments that are safe and healthy as well as being easy to work in. At the same time SandenVendo Europe wants continuously to grow developing new business and new products, but taking in consideration the global environment; we want to preserve our environment for the next generation To do that we got the ISO 9001 and ISO 14001 certification and SandenVendo Europe has initiated efforts to obtain certifications of compliance with OHSAS 18001 occupational health and safety standards. We are aiming to have all our business site certified by 2014. This report is intended to help stakeholders familiarize with SandenVendo Europe’s operations and promote a further increasing of their communication with Sanden. Last but no least we continue to maintain good relationship and partnership with the local Municipality where since years we are promoting the Social day activity; in those occasions SandenVendo Europe employees voluntary clean the public gardens of Casale Monferrato. The following report describes our main activities, targets and result obtained by the company in the latest fiscal year; it is the first edition of this CSR report, therefore we want to improve this document in the future. I would take the occasion in this introduction to thank all Sanden employees for their daily efforts to achieve the company targets and to follow the Sanden guidelines and instructions. The President Alberto Spinoglio 4 Produce in harmony with nature - Produrre in armonia con la natura 5 Sanden Forest Sanden Corporation, Akagi Plant (Maebashi, Giappone) Sector: Electronics Employees: 1.000 Annual Production: 380 milions dollars (FY09) In 2002 Sanden Corporation, a manufacturer of electronics, adopted a production and forest areas located on a stretch of 641.000m2 of land on the southern slopes of Mount Akagi in Gunma prefecture, north of Tokyo. This site was created with the idea of forming "the factory of the 21st century in harmony with nature." Only half of the site was assigned to the factory, while the other half includes a forest (329.000m2). The complex currently has facilities for the production of vending machines, refrigerated display cases and components of compressors for air-conditioned passenger cars, as well as logistical processing centers. Building this complex, Sanden has employed on a large scale, construction methods designed to safeguard nature and in some cases improve the natural environment and ecosystems. For example: habitats lakes were created by tanks on the comply, the stones and beams on the site were used for its construction, the rare species of plants discoveries were replanted in ideal locations within the site, with the correct maintenance and care. These efforts also provided economic benefits of over U.S. $ 6.5 million due to a reduction in the use of concrete and a reduced cost of waste management. The company has set a target to ensure that the number of species in the local ecosystem is higher than the level of the year (1998) in which the construction of the site began. In its fourth environmental and naturalistic survey conducted in 2008, the biodiversity of the site was generally regained and had exceeded the 1998 levels. The complex is also used for educational programs and experiences of nature, every year more than 5,000 students come to visit it. Absorption of CO2 by 530 tons in the forest area has been certified by the prefectural government in 2010. Sanden Forest has been chosen by the OECD (The Organization for Economic Co-operation and Development), one of the 7 best examples of good practice for sustainable manufacturing. 6 Sanden Forest Akagi Plant 7 GENERAL DESCRIPTION OF THE COMPANY Group Profile SandenVendo group is a world leader in heating and cooling systems, both in the automotive industry and in the mobile devices used for food refrigeration. SandenVendo Group is also the largest producer and distributor of vending machines for chilled drinks. The following are the main stages of the history of the group. 1937 - Vendo creates the first automatic system called "Red Top". The vending machines for drinks and food, as well as now universally known, were born in the '30s. The first vending machines did not work with coins but were simple coolers with ice inside which were placed the bottles of soda. Everything changes with the invention by the brothers Elmer F. and John T. Pierson which patent an automatic, simple, inexpensive and reliable lid. This cap could be placed on top of the Westinghouse and Frigidaire refrigerators already in service stations and grocery stores converting, in fact, these machines in vending machine. With three thousand U.S. $ in capital, in 1937, the two brothers founded the Sales Company in Kansas City, Missouri. Together with J.E. Hagstrom and his company the developed the first system of automatic distribution effectively functioning called "Red Top." The cover moved along the cooler towards the drink in order to avoid moving the bottles through the ice. Thanks to the "Red Top" not only the biggest "night market" is created but it changes forever the way of understanding the world distribution of the CD beverage. 1941 – Vendo is authorized to produce 5,000 "Red Top" for military training camps With Pearl Harbour’s attack Vendo reduces its production like the largest U.S. companies. Despite the rigid restrictions, soft drinks are classified as "essential to the moral of the soldiers" by the Ministry of War of the United States of America Vendo is authorized to produce and sell 5,000 "Red Top" for military training camps. Vendo also supports the efforts of the nation during the war by producing radar detection systems and electronic equipment. The Company earns seven Army-Navy "E" Awards for excellence in the fulfillment performance of contracts with the Army and Navy of the United States. 50s – The vending industry develops geographically. The end of the war brings an era of prosperity for America and for the vending industry. In the 50s the industry develops at a geographical level. As more and more Americans are starting to move to the suburbs, the producers of soft drinks are rushing to extend their range of vending machines. The vending industry also begins to expand internationally and in 1956 the products of Vendo are distributed in 20 different countries. During the 50s the vending machines are renewed in design, machines are designed in a vertical position, with tapered edges and revolving doors. During this decade Vendo builds new plants and vending machines capable of dispensing snacks, fresh food, coffee, milk and ice cream are introduced in the market. These distributors offer to consumers a greater variety of products and allow bottlers to significantly increase their sales volumes. The vending machines are placed in stores, restaurants, drive-in and at service stations. 8 1956 - Vendo merges with competitor companies, Vendorlator Manufacturing Company (VMT), and settled in Fresno, CA. As Vendo, also Vendorlator started its activities in 1937. The two companies merge and create a co-partnership between Harry S. Childers and Howard M. Tripp. While Vendo before the merger, had as its main customers Coca-Cola bottlers, Vendorlator served as principal clients Pepsi-Cola and Royal Crown. After the merger, the company became the leading supplier of vending machines for soft drinks. Vendo becomes a listed company in 1956, the shares are traded on the New York Stock Exchange from 1961 where they will be exchanged for over 20 years. 60s - Vendo expands through international divisions and becomes one of the first companies to introduce vending machines for canned beverages. The 60s were years of global expansion for Vendo. International divisions of Vendo shall receive, in addition, the licenses to produce goods in England and Mexico. In 1964 the production began in Belgium, Australia, Italy, Germany, France and Canada. Always as pioneer in the field, at the end of the '60s, Vendo was one of the first companies to introduce on the market distributors for canned beverages. These machines represent a great advantage for bottlers who can fill distributors of the same size with twice the amount of product (packed in cans) possible with bottles. 70s – The energy crisis and oil prices have a bad affected on U.S. industries including vending industry. The vending machines are not considered essential products and many companies decide to purchases. In addition, due to the oil crisis and the closure of many companies, fewer distributors placed in companies and service stations. In the mid-'70s Vendo abandons Kansas City and sells snack division. Keeping only the division of cold drinks, the company divides the production between Fresno plant and the new one in Corinth Mississippi. 1988 cut are the the - Vendo is bought from Sanden Corporation of Japan. In 1981 Vendo concentrates all production and administrative offices in Fresno and in 1988 was purchased by Sanden Corporation of Japan. For over 50 years Sanden is a leading manufacturer of compressors and systems for the automotive industry and for air-conditioners, vending machines, commercial freezers and refrigerated display cases. The company has brought in Vendo superior technology, better equipment and a research facility. 9 90s Vendo continues to expand on a global scale. During the '90s Vendo continues its global expansion thanks to the technological innovations. Some of these advantages include vending machines electronically programmable, high capacity, machines capable of storing bottles and cans in a variety of sizes and shapes, and machines that accept debit cards and "smart card". 2005 - Vendo moves its headquarters to Dallas, Texas and changes its name to SandenVendo America. Inc. Vendo in 2005 moved its headquarters to Dallas, Texas, and changed its name to SandenVendo America Inc., in order to emphasize a new global synergy with the group. Today SandenVendo employs about 400 people in the factory in Dallas and works in conjunction with numerous vendors sellers and manufacturers around the world. SandenVendo continues to expand its activities in Africa, Latin America and Eastern Europe. From the first "Red Top" of just a cooler full of ice and soda bottles to high-capacity multi-product distributors of today, SandenVendo continues along the path of innovation, design, technology, production and customer satisfaction. 10 SandenVendo Europe S.p.A. SandenVendo Europe S.p.A. (hereinafter SVE) is the company of the SandenVendo group that develops, manufactures and markets automatic vending machines and related spare parts for the European market. The goods produced by SVE can be sold to distributors of the group, who resell the product to final customers in their respective markets, and/or directly to Italian SVE “end-customers”. In 1965 Mr. Hart Lennan, in the name and on behalf of VENDO Co., considering that the city of Casale Monferrato was in an area of industrial decline but also in a strategic and geographically privileged location, realizes the purchase of the building of the failed IGEA. So in 1966 the new plant in Europe is established in Casale Monferrato under the name of VENDO Italy in which works only an assembly line for cold distributors, whose production is approximately 1.000 vending machines per year, with a staff of 32 people consisting of an American director, an Italian manager and his assistant, twenty-five employees and workers. The period beginning in 1967 and running until 1974, can be defined as one of the positive moments of the Company for its continuous and steady growth: at the end of 1974, the factory is able to produce about 4,500 distributors a year with a workforce of 130 employees. In 1974 also VENDO Italy is forced to suffer and endure a difficult period of industrial crisis, due to several factors including the global oil crisis and technical obsolescence of its production. It is necessary, therefore, to regain or reconfirm the widest credibility in providing a product the most modern and diverse as possible, competitive in terms of return for the investment of customers. That's how the VENDO Co. confers the responsibility to direct all activities of Casale Monferrato to one of his younger and more prepared technicians, Mr. Joe Ray Town, who begins his difficult task from January 1975, with a professional and very well organized job. In fact, in 1975, the first vending machine in variable columns is introduced to the market, it contributes greatly to the production growth of VENDO Italy. In 1980 the Casale Monferrato plant is capable of producing 4.127 distributors, gradually increasing in following years, it’s qualified production, up to 7,000 distributors in 1987. As anticipated, in May 1988, VENDO Co. is purchased by the SANDEN group, a prestigious Japanese group with factories and offices around the world, well know not only in the production of vending machines, but also in that of air conditioners for cars, compressors, accessories for bicycles and others. Consequently, VENDO Italy can now access the world's largest group of vending. Solid and prudent investments are made in technology, increasing production capacity. At the same time, an investment program for the restructuring of the factory starts, implementing while preserving the original location of the offices that today is completely finished. With a ceremony organized in a perfect balance between Italian and Japanese tradition, on September 30th, 1997 is celebrated what has been called the "new era" of VENDO Italy, which will culminate in 2005 with the acquisition of the new name "SandenVendo Europe" . 11 Recap of SandenVendo Europe S.p.A. history. * 1931 - Vendorlator Inc. founded in Fresno, California * 1937 - Vendo Co. founded in Kansas City, Missouri * 1956 - Vendo Co. Merges with Vendorlator Inc. * 1961 - New branches in Germany, France e Belgium * 1965 - Production starts in Casale * 1967 - New branch in Spain * 1988 - Vendo becomes part of Sanden Corporation the biggest producer of automatic machines * 1997 - First growth of the Casale Monferrato Factory * 1999 - Second growth of the Casale Monferrato Factory * 2000 - New European offices: Vendo France, Vendo Belgium * 2001 - Acquisition of Vendhall UK * 2002 - The coinages production start * 2002 - New factory in Akagi, Japan * 2005 - Vendo becomes SandenVendo * 2011 - 50° anniversary of the European activities in Marzo 2011 12 Our factory SandenVendo Europe S.p.A. Regione Cavallino, 2 – Coniolo SandenVendo Europe is located in the industrial zone of Coniolo, a town near Casale Monferrato located 252 meters above sea level, in the province of Alessandria. The town of Coniolo is focused in a hill area around the church, on the right of the Po River. Where in sunny weather, from the belvedere square it’s possible to overlook much of the Monferrato and Vercelli plain. Already ancient medieval center, Coniolo today is the town of roses and with the "Coniolo Flowers" event has distinguished itself by choosing the rose as a symbol not only of the event but of the whole town, is evidenced by the fact that in the municipal areas, dwells a rose for every. 13 Immediate surrounding: Casale Monferrato. Casale Monferrato, an important center in Roman times, after the fall of the Roman Empire was the capital of the Paleologi family and later became a dominion of the Gonzaga family who built one of the largest and most prestigious European citadels. Disputed over the course of several centuries between the French and Spanish, during the Risorgimento it was one of the defensive bulwarks against the Austrian Empire. Today, located in the industrial triangle MilanTurin-Genoa, Casale Monferrato is an important industrial center known for the production of cement and for the presence of discharged Eternit factory, which produced the eponymous material, whose side effects are now well known for the presence of asbestos. 14 Guidelines The Sustainability Report of SandenVendo EUROPE presents the performance of social, environmental and economic issues related to the activities performed by the company on the basis of the guidelines provided by the Japanese parent. Reference guidelines The Social Report of SandenVendo EUROPE is an additional instrument of communication and evaluation of the social aspect of the business. The data collection was carried out by a working group made up primarily of members of the administrative office assisted by other employees of the same company. It is addressed to a broad audience that includes both those who have interest in the company (stakeholders) and the society in general and the environment. A free editing form was chosen, according to uniform criteria that permits to compare, on an annual basis that embraces the whole financial year. It’s a stand-alone document, that is separated from the annual financial statements, to which it is however connected, as it takes up part of the economic information; It aims to provide useful information about: a. institutional framework b. reference values c. connections between the declared values, policies and choices made d. process followed for its formation The Sustainability of SandenVendo EUROPE has been prepared in accordance with the principles of: - Liability Identification Transparency Jurisdiction of period Prudence Comparability Comprehensibility, clearness and intelligibility Utilities Reliability and faithful representation 15 Philosophy of SandenVendo Europe 社 是 MANAGEMENT PRINCIPLES PRINCIPI DI GESTIONE 一、顧客のためになるよい製品を作ります SATISFY OUR CUSTOMERS NEEDS WITH HIGH QUALITY PRODUCTS. SODDISFARE I BISOGNI DEL CLIENTE CON PRODOTTI DI ALTA QUALITA’ 一、仕事を通じて社会福祉と文化の向上に寄与します CONTRIBUTE TO THE SOCIAL AND CULTURAL IMPROVEMENTOF THE COMMUNITY THROUGH BUSINESS ACTIVITY. CONTRIBUIRE ATTRAVERSO L’ATTIVITA’ COMMERCIALE ALLO SVILUPPO SOCIALE E CULTURALE 一、自己啓発につとめ誇り高き社会の建設に努力します BUILD A COMPANY OF WHICH ALL ARE PROUD, THROUGH THE EFFORT OFSELF-MOTIVATED EMPLOYEES COSTRUIRE UNA SOCIETA’ DI CUI ESSERE FIERI ATTRAVERSO GLI SFORZI DI PERSONALE AUTOMOTIVATO 16 Corporate Philosophy Basic Principles (Universal values shared by the global community) 1. Good corporate citizenship and harmony with society We will grow as good corporate citizens, trusted by society and in harmony with the international community 2. Respect for Human Rights We will build a corporate culture founded on respect for individuals and human rights 3. The Environment We will endeavor to preserve the environment in energy aspect of our corporate activities to ensure that future generations will inherit our beautiful, irreplaceable earth. 4. Corporate Ethics We will conduct our corporate activities in a spirit of sincerity and fairness based on a strong sense of ethics. 5. Safety and Health We will enable our employees to achieve a healthy life style by creating an environment that assures their health and safety. 6. Customers It is our duty and will to pursue a planning and production development in order to offer products, systems and services based on the concept “QUALITY FIRST” that can provide constant satisfaction to our Customers around the world. 7. Employees We will grow together with our employees by creating an organizational culture that encourages free and vigorous communication imbued with a spirit of respect for humanity in line with our corporate culture of challenge and innovation. 8. Shareholders and Investors We will respond to the trust and expectations of our shareholders and investors by expanding the Sanden group, enhancing our corporate value and making our management more transparent. 9. Communities We will respect regional customs and cultures around the world and contribute to the social and cultural development of the communities, which are linked to us. 10. Suppliers We will grow together with our suppliers as business partners who provide our customers with the best possible products, systems and services on the basis of fair and transparent relationships. Basic Stance toward Stakeholders Our Company philosophy indicates the starting point for company activities in which the New Sanden intends to work as a group of “Global Excellent Companies”. 17 QUALITY POLICY The quality is vital to the success of SandenVendo Europe and its customers in today's highly competitive markets. The products and services of SandenVendo Europe are designed to meet the main requirements of our customers in terms of reliability, efficiency and technical capacity Quality means meeting the needs of the customer through explicit and implicit technologically sound products through efficient design solutions, while optimizing their production processes and internal organization. √ √ √ √ This is achieved in the following way: seek the added value for the customer; build, develop and improve the Quality System; pursue in a structured and documented improvement planning monitor the defects, with a view to a constant reduction of non-quality costs; empower, motivate and train their staff professionally. The quality of every day work is represented by the efficient completion of a task performed immediately in accordance with the specifications. Each employee is responsible for the quality of his work and activities for the control and quality improvement. The quality defects should be totally avoided, not corrected. SandenVendo Europe maintains and develops its own quality system to improve and to continually check their quality. The total quality approach by SandenVendo Europe makes it possible for our customers to sell their products through vending machines with high quality and high efficiency. The end result is the profit for our customer and ourselves. 18 . 19 STQM – Sanden Total Quality Management Definition of STQM: they are the actions carried out to accumulate the daily schedule of continuous and creative improvement, perfecting the quality of each and every management result, in order to build the company that thrives in the twenty-first century STQM Sanden way – 23 item-codes: 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. 21. 22. 23. Challenge and Innovation Punctuality Act without delay “Sangen-Shugi” Principle Opinions and Discussion Think and Act for yourself (Become a Leader) SQC (Scientific Quality Control) Entrepreneurial Spirit New Values and Solid Results Risk-taking Vision and high Aspiration Clear Communications Cheerful yet Firm “Okaeshi” (Mutual Interreaction) We Must be First Class EC (Excellent Company) Be Alert and Attentive (to report, inform and discuss) Communications and Trust Roles and Responsabilities Continuity and Thoroughness “Role not title” Movement Mike’s Behavioral Diagram Move! Have others move! 20 STQM Sanden way – 23 item-codes: 21 Vision of quality The quality of our products is the result of the services provided by each of our employees. All our staff is trained to be able to create high-quality products. Our TPM activity (Total Productive Maintenance), carried out by working groups formed internally, aims to improve the daily performance to enable us to offer the best possible quality to our customers. Suggestion system (individual suggestions): through suggestions on the daily working activity, offer valid viable solutions in economic terms concerning improvement both of the product and the workplace. Here are some examples: Before: fixing the transformer with screw requires loss of time After: using fixing faston we save 1 minute/box Worker: Paola Gamarino 22 Thickness reduction copper tubes (refrigerant system) Worker: Giuseppe Lamanno 23 Before: cleaning of the work area 1 hour after processing work After: new chute for scrap collection Saving 30 minutes after each process Worker: Cardinale Filippo 24 Each individual suggestion is examined, evaluated and monthly the best one is rewarded. Each year Sanden organizes a convention for the companies located in the European territory. In this occasion the most deserving groups of workers of the Company receive awards for ideas and/or innovations brought into the company. Every year the most significant suggestion is selected and it will compete in the European contest. On 14-15 October 2010 we had the honor of hosting the European Convention in Casale Monferrato, a further incentive to the improvement of the group. 25 STQM Convention 2010 in Casale Monferrato 15/10/2010 Representative groups arrive from all the affiliates company: Company: SIE Team: Grow Together Company: SMP Team: LOG Company: TCE Team: The Guinea Pigs STQM differs from the "suggestion system" because it is not an individual but a group activity, always aimed to improve working activity, according to company policy provided by the President at the beginning of the fiscal year. 26 ENVIRONMENTAL POLICY SANDEN, a world leader company, recognizes that environment protection is the most important responsibility shared by humankind. In order to give a safe and clean planet to future generations, SANDEN has undertaken appropriate activities in all its business areas. Principles of environmental action 1.A specific organization has been established in order to promote environmental activities with respect to our planet and there will be audits and actions to support these activities. 2. Information will be collected about the environmental impact of SANDEN using indexes and values, targets are also set in order to continuously reduce the environmental impacts. 3. In addition to the laws and regulations of any level, new voluntary standards should be provided in order to improve the environmental impact of SANDEN. 4. Any toxic substance should be eliminated, where possible, for the health of workers and for the environment. 5. A policy of waste reduction recycling products and saving energy will be supported. 6. Internal training activities will be adopted for all SANDEN workers, at any levels, in order to improve the awareness of environmental protection. 7. Local environmental policies will be supported in order to improve the environment around the factory. 8. Communication of environmental responsibility will be encouraged by SANDEN to the local community. 27 SandenVendo Europe eco-philosophy Sky, Earth and Man are the three basic elements that create the Universe. It’s Sanden’s commitment to maintain the harmony between these elements in order to achieve an improvement in our daily life. This is the eco-philosophy that SandenVendo wants to carry on. Our goal consists of maintaining, preserving and protecting these basic elements for future generations. SandenVendo Europe eco-project Cielo (SKY) Terra (EARTH) Our mission consists of studying and developing products that preserve environment. SandenVendo Europe, following the guidelines of their Head Office Sanden, world leader in researching and developing eco-products, has the main goal of reducing environmental impact of their products. SandenVendo Europe environment policy The safeguard of the global environment is essential and must be felt by each human. The slogan of action of each SandenVendo Europe employee is: WE CONTRIBUTE TO THE FUTURE OF A SAFE AND BEAUTIFUL EARTH Uomo (MAN) . 28 our Japanese head-office 29 MISSION Sanden’s President, each fiscal year determines and announces the guidelines to achieve their goals. 30 ORGANIZATION ORGANIZATION CHART 31 SOCIAL DIMENSION ANALYSIS PERSONNEL: employment 32 33 PERSONNEL: authorization . 34 PERSONNEL: ageing 35 PERSONNEL: training Training courses per Fiscal Year Training hours per Fiscal Year 36 PERSONNEL: work related injury 37 38 SANDENVENDO EUROPE FOR THE SOCIAL 39 Visit of the president of Sanden Mr Kiuchi Kazunori in Coniolo Article in the local newspaper Masayoshi Ushikubo, accompanied by the Managing Director of Sanden Europe SpA, Hiroyuki Murota, and the Directors Alberto Spingolio and Stefano Carlevaro, meets the mayor Giorgio Demezzi, Councillor Vito De Luca and the chief of staff Flavio D'Andria of Casale Monferrato Article in the local newspaper 40 Community The focus on community has become a strong point for many companies that have developed real strategies to improve the relationship with the society in which they operate. This is not to apply what comes from someone called "compassionate capitalism" but it means to start a responsible strategy that considers the importance of the territorial dimension. In this context, SandenVendo Europe since 2010 carries out the Social Day: a day in which management and employees grant their willingness to the community of Casale Monferrato for cleaning some green areas. 41 Social Day: Service to the community and environment May 24, 2010 Even the leaders of the company are available for public activities concerning environment: the idea that started in Japan has arrived in the city. SandenVendo has organized a social day to give a day of cleaning in parks and play areas of Casale Monferrato. May 14, 2011 Directors and employees of SandenVendo, led by President Hiroyuki Murota, as they did last year, have willing cleaned up to eight parks and play areas in the city. Council member, Vito de Luca: commented it offers an example that should be followed by citizens and other local companies to focus on the environment. " July 28, 2012 SandenVendo employees clean the gardens of the city. For the third consecutive year, the beautiful Japanese multinational initiative is being repeated, it will also take care of the green area of “Martyrs Square”. The collaboration between the SandenVendo Europe and the Municipality of Casale Monferrato continues. Saturday, July 28, 2012, as a now established tradition, the employees of the Japanese multinational Co. cleaned up eight green parks areas in the city. 42 "Armed" with brooms, rakes and bags, the volunteers have worked for the care of the environment of the city, an offer that the town of Casale Monferrato has welcomed once again positively, especially because the company in Coniolo, which is part of the Sanden group, a world leader in the production of vending machines, has been already engaged in the two previous years in the work of cleaning with excellent results. "We have reached the third year of this unique and beautiful initiative of the SandenVendo said the Councillor for Environment, Vito De Luca - and I think it is fair right, once again, to thank the Chairman of SandenVendo Europe, Hiroyuki Murota, and all the staff working with enthusiasm to make our city cleaner. An example of excellent cooperation between the public administration and a private company which, fortunately, has begun to be an example for others." Article from the local newspaper 43 SandenVendo: maintenance of the town’s garden SandenVendo Europe has signed a 2-year agreement with the City of Casale Monferrato to take over the maintenance of the green area of “Martyrs Square of Liberty”. The agreement provides the execution of all work and services required to maintain the decorum of public space and the species of trees and blooms present. During the year Sanden will guarantee mowing, pruning of hedges, cleaning ot the leaves and cleaning of the area with the exception of litter bins. Give a contribution for social purposes, in particular to local activities, falls under the Sanden group policy. SandenVendo Europe hopes that this small initiative will lead, in the future, to great benefits to both the municipality and residents. Article from newspaper the local 44 Business performance Production Earnings from sales and services Earnings from sales of goods and services are as follows (in k EUR): The sum of earnings is decreasing by 22% compared to last year. The net earnings (in thousand Euros) are divided as follows: 45 The earnings (01/04/12 – 31/03/13) for 16.814 thousand Euros (20.171 thousand Euros same period of previous year) are achieved with regards to Companies of the SandenVendo Group. PERSONNEL: cost of personnel The allocation of these costs is included in the Profit & Loss Account. Staff costs increased from € 6,436,000 in the previous year to EUR 7.065 million: the increase is determined by the increase in temporary employment administration to deal with production peaks during the year. Below shows the movement during the year in the number of employees divided by category: 46 Environmental and social performance Methodology for the assessment of environmental impact and related analysis Test Procedure - Index of influence on indirect environmental aspects For the management of indirect environmental aspects (defined by the UNI EN ISO 14001 as the environmental aspects on which the company can exert its influence), SandenVendo Europe has carried out its own index of influence as shown in the following table. Index of influence LOW: SandenVendo Europe is not able to make a strong "pressure" towards the suppliers, which are still given rules of conduct to be followed within the plant or environmental specifications for the products / services provided; the minimum and essential element required, however, is the compliance with statutory and regulatory base in the environmental field, while it is difficult to operate precise and specific control mechanisms. For this type of suppliers it is essential to act in advance, asking the supplier guarantees on specific environmental constraints at least documentary. Index of influence MEDIUM: SandenVendo Europe is able to make a quite effective "pressure" towards the supplier, to whom, in addition to rules of conduct to be followed within the plant or environmental specifications for the products / services provided, are assigned, specific work instructions to be followed during the course of activities. For this type of suppliers it is possible to create a relation of partnership and synergy based on the environmental sensitivity of the parties, which is formalized in specific customized work instructions. Index of influence HIGH: SandenVendo Europe is able to make a marked "pressure" with the supplier, to which, in addition to rules of conduct to be followed within the plant or environmental specifications for the products / services provided, are assigned, specific work instructions to be followed during the performance of activities and are also provided planned and specific control mechanisms. For this type of suppliers a common way for the improvement of environmental performance is possible. 47 ENVIRONMENTAL IMPACT (analysis) There is an obligation of re-elaboration of the assessment of environmental impacts and related environmental analysis in the following cases: - changes in production process and in the significant organization; - possibility of adapting the management of environmental impacts in relation to the degree of technical progress; - significant incidents, new issues of regulations Evaluation of indirect environmental impacts In this case, our analysis indicated: Reducing packaging of commercial parts purchased from Chinese supplier. Management review of April 2010. From SSR (Shanghai Sanden Refrigeration) we buy: x movement y movement plastic trays ( Large volume cardboard box !) We tried to convince SSR in reducing the volume of cardboard especially for plastic trays (see Review of April 2010). This effort was in vain. RESULT: LOW influence index on SSR. Then in 2011 it was decided, also for economic production, to buy these plastic drawers from a local supplier, RIMAPLAST, and we agreed with the supplier to design a new metal support (always recyclable) to avoid a cardboard box packing. RESULT: HIGH Rimaplast. influence index on our supplier The environmental impact of the plastic drawers is therefore considered well organized and practically knocked down. In fact, you can save (about 3000 machines) at least 18.000 cardboard boxes per year of size 700 x 400 x 400. 48 Finished Goods “End of life” management - Machine designed with the possibility of extraction of the refrigeration unit (to switch from HFC to CO2 system). - Machine designed to allow the proper recycling (WEE) at the end of life. - Detailed manual for maintenance and disassembly RESULT: HIGH influence index on end user or disposer. Supplier management (eg maintenance) - Suppliers are aware sensitized of corporate policy aspects. For suppliers who operate in SandenVendo (eg outside firm involved in extraordinary maintenance) when entering the company, are advised of Operational Safety Plan, and proper waste management (eg MEWA - clean rags – oiled rags - not greasy rags) RESULT: MIDDLE influence index on supplier. 49 Achieving innovative goals with low environmental impact: 1) our production New plastic bases On the new BS8 model a new plastic base has been introduced: it is useful for storage and transportation of Finished Goods which later will replace all the old wooden bases that we are using on the various models we produce. (Costs: 3 Euro for wood – 1,97 Euro for plastic) The advantage, besides a considerable reduction of the cost, is the total recyclability of the base that can be reused or thrown into the waste container for plastic. Another big advantage is the size for storage significantly reduced; this allows more space available in stock and a reduction of truck transport. New Co2 Refrigerant System Introduction on models G-Drink and SVE336 of the refrigerant system with R744 gas in place of R404a and R134a. The advantages of this are that the new gas is totally ecofriendly than the other two. So if released into the environment, it does not cause any damage. The performance of vending machines in terms of cooling and consumption haven’t changed. 50 Led lighting Introduction on models G-Drink, G-Snack, 810 and 545 of Led lighting (30 Watt) instead of Neon lighting (112Watt) 51 Achieving innovative goals with low environmental impact: 2) our factory Replacement roof in asbestos In Fiscal Year 2011 we removed asbestos from the roofs of the factory. This to avoid probably serious diseases due to asbestos. 52 Re-arrangment of a pool for rain-water Before the maintenance, the pool was full of shrubs and woods. Now only rainwater in the pool and newborn tree on the boundary. 53 This document has not promotional purposes. This Social Report will be disseminated primarily through the company's website: www.sandenvendo.it We will provide copies of the Report to all employees and key suppliers and a copy is made available at every company location. Additionally a hard copy and / or electronic format will be distributed on request. SandenVendo Europe S.p.A. 54