sustainability report 2005

Transcription

sustainability report
2005
summary
Letter to shareholders
Guiding principles Philosophy
Social responsibility model Main sustainability projects Enterprise
Organization
Awards & acknowledgements
Corporate governance
Company bodies Sustainability reporting structure
Code of conducts
Processes and quality
Economic development
Social sustainability
Environmental sustainability Glossary
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Sustainability report 2005
The active commitment to sustainable development
that Indesit Company inherited and has consolidated
over the years continues to underpin our growth.
Globalization has created enormous opportunities
and has at the same time increased the demand for
transparency and ethical conduct. Industry is increasingly conditioned by new models of sustainable development focusing on the environment and research
Letter to shareholders
into alternative energy sources and clean production
processes.
In such a complex scenario, companies are judged on
their ethical, social and environmental conduct and not
just their business results.
We have therefore concentrated on the most basic elements of corporate social responsibility: reduction of
energy and water consumption and selection of the raw
materials in our products.
Combining economic and social development is not
merely a question of value added for our Company but a
moral obligation towards our stakeholders.
In 2005, we carried forward our commitment to the people who work with us and who live in the areas where we
operate.
An enterprise is socially responsible when it is aware of
the influence it has in society and adopts codes of conduct that meet employees’, consumers’ and society’s expectations regarding the environment, safety and the
quality of life.
The new challenge - to consolidate our positioning in a
competitive scenario that will thin out the number of
players in the market - cannot be met without a strong
sense of social responsibility.
“There
is no value in
the economic
success of
any industrial
initiative if
it is not also
accompanied
by commitment
to social
progress.”
Aristide Merloni (1967)
Once again Indesit Company reports on a commitment
to combine economic development with social progress
in order to create value added and distribute it equitably
amongst its stakeholders: this is the true meaning of successful production and competitiveness.
The 2005 Sustainability Report carries forward the process of integration between social reporting and the monitoring of intangible assets in the knowledge that the real
value of an enterprise lies in growth processes that also
involve human resources, the value of brands, levels of
customer and supplier satisfaction, the capacity to operate
with total respect for the environment.
Guiding principles
The report was drawn up in line with the principles recommended by the GRI (Global Reporting Initiative), the
LBG (London Benchmarking Group) and the SRSG (Social Report Study Group). The approach adopted is the
Triple Bottom Line approach, which analyzes sustainability in three different dimensions: economic, social and
environmental.
The data provided in this document refer to all Indesit
Company plants.
Respect for worker’s rights
Respect for the fundamental rights
of workers worldwide in accordance with the conventions of the
International Labour Organization
(ILO) on the abolition of exploitation of minors in the workplace
and the principles of trade union
freedom, workers’ organization,
collective bargaining and defence
of equal opportunities.
Central role of the individual
Boosting the value of human
capital and developing individual
professional
skills
whilst
guaranteeing equal opportunities.
The safeguarding of the safety and
health of all employees, also through
the agency of a special Safety and
Environment Commission.
Adoption of a “participatory industrial relations model”
Creation of a “participatory” industrial relations model as an effective
instrument for dialogue, involvement and definition of shared objectives.
Creation and distribution of value
added
Success in production and market
competitiveness is pursued by creating and distributing economic,
social and cultural value fairly
amongst all stakeholders.
Innovation and quality
Research and development efforts
deliver constant innovation in business processes.
Permanent training
A permanent training system favours the development of competencies and professional skills.
Fairness and transparency
Satisfaction of stakeholders’ expectations through clear and transparent communication of strategies,
activities, results and decisions.
Environmental respect and
conservation
Sustainable growth is the fruit of a
pro-active approach to environmental
issues and of pursuing today’s
objectives in full respect for the needs
of future generations.
Philosophy
2005 was the start of a new era for Indesit Company, which
with its new name rose to the challenges of global markets
with renewed incisiveness.
Growth continues to be subordinated to compliance with
best practice in corporate governance.
We have inherited a wealth of philosophy, values and traditions, brands and innovation capability and we must
continue to build on them to respond increasingly effectively to international challenges, and not only.
Profits, growth and the consolidation of our brand positionings are not the only goals: the true gains are tied to
social progress.
Our values are reflected in day-to-day life, in business
and in sensitivity towards consumers’ needs. The values
springing from our cultural heritage and experience are a
guarantee, a premium for Indesit Company’s brand. They
represent not only a business mission but also a sense of
social responsibility guiding and uniting everyone in the
Group.
Indesit Company’s values were identified and endorsed by
our own employees in a long process involving interviews
and questionnaires, meetings and workshops that enabled
the Company to take on a new identity.
Employees’ thirst for knowledge, their spirit of enterprise
and readiness to change are expressed by the adjective Innovative; respect, dialogue and the capacity to listen are
defined in the value Respectful; competition, dynamic
spirit and prides in the Company are identified in the
word Ambitious; working with and adapting to people is
the value we call In touch with others, while social sensibility and transparency in relationships are embraced by
our conception of Genuine.
Values
Indesit Company expresses an ambition to improve in
everything it does, through five key values: innovative,
respectful, ambitious, in touch with others, genuine. Indesit Company’s charter of values is based on the United
Nations Charter.
Innovative
Because everything Indesit Company does shows the creativity and spirit of initiative of people who strive for and
apply innovation in everything they do.
Respectful
Because Indesit Company’s priority is to be sensitive and
responsible towards consumers, employees and the environment.
Ambitious
Because Indesit Company’s capacity to improve everyday
is based on passionate enthusiasm for excellence and leadership.
In touch with others
Because constant dialogue with its stakeholders enables
Indesit Company to listen to their needs, provide the most
effective solutions and achieve the best results.
Brand essence
Our culture
Indesit Company can be summed up in two words:
Simply Better.
Simply Better is a frame of mind, a way of thinking and
working, based on a firm belief that real value can only
be created by reconciling business leadership with social
progress. This is the value we transfer in the over 14 million household appliances chosen every year by millions
of European families.
Simply Better means improving everyday, to respond better to the needs of customers, employees and all the other
stakeholders.
We want to be Simply Better , all the time, in everything
we do.
Indesit Company has grown out of an Italian enterprise
well established in Europe to become a European organization with an Italian soul.
Indesit Company is dynamic, optimistic, genuine and ambitious, traits which are clearly expressed in every aspect
of our corporate identity, identity, including our colours,
logo and art work.
Genuine
Because Indesit Company is open, transparent and genuine and enjoys working with a straightforward, dynamic
and flexible attitude.
The European
CSR Code of Conduct
Indesit Company, one of the first 100 companies in Europe to embody a new model of sustainable and socially
responsible business, is a supporter of “A European
Roadmap for Business. Towards a Sustainable & Competitive Enterprise”, a manifesto defining commitments
and priorities aiming to integrate corporate social responsibility into business culture.
Social
responsibility model
The Roadmap
Objectives
■innovation and spirit of enterprise
■development of capacities and competencies
■equal opportunities and diversity
■health and safety
■environmental protection
Strategies
■corporate social responsibility is an integral part of
our business stakeholder involvement
■leadership and governance
■leardership and governance
■communication and transparency
■co-operation between businesses and their partners
Indesit Company is a member of CECED, the European Committee of
Domestic Equipment Manufacturers, and actively participates in its
projects.
The Committee plays a vital role in
representing and defending the interests of European white goods makers,
also through its numerous study activities on themes ranging from energy saving to e-commerce.
Indesit Company also worked on
drafting the first European CSR Code
of Conduct.
Main sustainability
Jonathan - Indesit
Company
The Jonathan - Indesit
Company project
is a model for the
development of social
responsibility in Europe.
Launched at the start of
the ‘90s in southern Italy
to help back into society
young people with social
and judicial problems,
Jonathan manages three
residential communities
in Naples. Initially
limited to the Campania
region, the project was
extended to the Melano
plant in 2004.
“Starting afresh in a
factory” was also made
possible, in 2005, for
40 young people given
indefinite-term contracts
at the Carinaro and
Teverola facilities.
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Master in innovation
2005 was year three
for the Master’s
degree in innovation
engineering, an initiative
in collaboration with
Università Politecnica
delle Marche, designed
to produce managers
of innovation processes
in business. The
courses are given by
teachers from top
international business
schools to ensure the
best possible training,
without forgetting the
importance of Indesit
Company ethics and
values.
New after-sales
engineers
New after-sales
engineers were trained
to service Indesit
Company products on
the Italian market. The
training project was
also of considerable
social importance given
that the ten people
who went through the
theory side were selected
from disadvantaged
categories under an
agreement with major
labour market operators
in Milan such as the city
administration, Italia
Lavoro, Sportello Biagi,
Adecco and CISL (one
to the Italian three main
workers’ union).
ChildLine
Hotpoint sponsors
Safety to 18, a campaign
promoted by ChildLine,
a UK body that supports
minors. This year too
Indesit Company backed
numerous initiatives
in its various plants
and offices. In the
most recent “Cakes for
ChildLine” campaign
employees got on their
motorbikes to take an
enormous cake round
the four UK factories.
All the proceeds were
donated to ChildLine.
projects
Indesit and sport
The start of 2006 saw
an e-Bay auction for an
Indesit Graffiti fridge
autographed by Roger
Federer. It had also been
decorated by the Chinese
artist Wu Yimin, with
images of the tennis
champion surrounded by
South African children,
during the event on 14
November celebrating
Federer’s winning of
the Indesit ATP Race.
Indesit thus supported
the cause of the “Roger
Federer Foundation”
and donated a further
€10,000 on top of the
proceeds of the Graffiti
auction..
Adopt-a-minefield
Under the UN “Adopt-aMinefield” programme,
Indesit Company has
adopted around 25,000
square metres of land
outside the village of
Tenja, near the city of
Osijek (Croatia), which
it will clear of mines. It
will also build a school
for the
village’s 300 children
and access roads for its
56 families. In 2005, it
organized a competition
for art school students
- “Demine Croatia”. The
winner was presented
with a scholarship in
Zagreb. All the works
entered were displayed
in Rome during the
presentation of the 2004
Sustainability Report.
School for recycling
Indesit Company in
collaboration with
Bambinopoli promoted
an educational
project entitled “Aris
and the magic of
transformation” for
infant schools, in which
1,200 classes throughout
Italy made objects with
recycled materials on the
theme of the geography
of Italy. This aimed to
raise environmental
awareness in small
children. Prizes included
fridges and “Recyclettes”,
the bikes that Ariston
makes with recycled
aluminium.
Get on your bike….
Thanks to Ariston’s
“Recyclettes”, bikes
made of recycled fridges,
Indesit Company can
monitor the recyclability
of its fridges and also
help promote the new
WEEE legislation, which
makes it mandatory
for manufacturers to
fund the recovery and
recycling of their own
products. All Company
plants have Recyclettes
for internal use.
They were also made
available for free use on
“ecological” (no-traffic)
Sundays in major Italian
cities.
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Founded in 1975 by the spin-off of the household appliances division of
Industrie Merloni and making its reputation on the global industrial scene
under the name of Merloni Elettrodomestici, Indesit Company, the new
name it took in 2005, is the youngest of the world leaders. A process of
continual innovation, capacity for renewal and gradual shaping of consumers’ habits and lifestyle have enabled Indesit Company to enjoy constant growth.
Enterprise
Indesit and Ariston, the Group’s two longest standing brands, are sold in
Europe and are the leaders in their respective segments, built-in and freestanding. Its other brands - Hotpoint, Scholtès and Stinol - are amongst
the best known in the UK, France and Russia respectively. Through its
18 production plants and 22 sales offices world-wide, Indesit Company
adopts a model of sustainable development that aims to foster social progress where it operates, as well as helping “Made in Italy” exports. The Company is also engaged in creating industrial districts in developing markets
such as Poland, Russia and China.
2006 objectives
for a sustainable future
Economic
■Consolidate the Company’s size
■Improve production efficiency
■Develop markets with the highest potential
Social
■Fully understand consumers’ needs
■Consolidate projects involving stakeholders
■Guarantee employees’ health and safety
■Offer innovative products and services that deliver real consumer benefits
■Increase the number and quality of relationships with customers
Environmental
■Identify areas for environmental performance improvements, with internal measures and environmental indicators
■Organize production so as to minimize environmental impact
■Develop innovative and competitive products that are eco-friendly
■Guarantee clients even greater safety in using products
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Organization
Cooling
In 2005 most of our cooling production was
done in Carinaro, both free-standing and builtin, with over 1.5 million units coming off the
line. The Łódz plant also put in excellent results,
having produced 290,000 units in its first year
thanks to a new platform that makes it possible to develop and efficiently produce different
types of fridge for different markets.
This platform was used to make the first Ariston fridge with a Touch Control display and an
integrated Ever fresh system, a revolutionary
vacuum food preservation technology. Of the
built-in cooling products, the drawer fridge is
the most innovative model in terms of design,
functions and optimum energy consumption
performance.
The cooling products sector is strategically located with production plants located over a
vast area, from West to East, and accounts for
around a third of the Group’s total production.
2005 revenue
by product
7%
27%
35%
7%
24%
Cooling
Laundry
Dishwashers
Cooking
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Services
Dishwashers
Indesit Company’s production of dishwashers is concentrated in None (Turin) and, since
last year, Wuxi (Shanghai). The None plant
produces free-standing and built-in dishwashers for all the Group’s brands and has doubled
its output over the last five years – a notable
achievement. To meet the need to make a special category of dishwasher, the 45 centimetre
size, Wuxi was upgraded with an innovative
automatic inspection system and a new IT
system enabling production to be tracked right
from the initial design stages. In line with its environmental policy, Indesit Company has also
improved the energy efficiency of its dishwashers. The new generation machines can deliver
more functions and use less water, detergent and
electricity - with savings of over 30%.
Cookers
Indesit Company produces over 3.5 million ovens, hobs and cookers in its Albacina, Refrontolo,
Łódz and Blythe Bridge plants, all with Class A
certification. Recent innovations have further
improved the ergonomic aspects and ease of use
thanks to special studies of consumers’ needs. The
Touch Control system provides instant dialogue
with the oven using easy to understand symbols.
Ovens clean themselves with the Fast Clean pyrolytic system that reaches 500° C and disintegrates
all residues. Of the built-in hobs, the 75 cm MultiRole model offers different cooking solutions on
the same hob.
tion units. In 2005, Indesit Company launched
Ariston’s Aqualtis washing machine, which packs
into a single product all the innovative technologies generated in over ten years of constant research and development. Wash cycle flexibility,
super-ergonomic design, environmental concern
and extreme care of even the most delicate items
(SuperEco function and Woolmark Platinum
Care certification) are just some of Aqualtis’s credentials.
Dryers
All Indesit Company’s dryer production is at
Yate, one of its four UK plants and the biggest
dryer production facility in Europe. It has 700
employees and reached an output of around one
million units this year thanks to heavy investment in new product lines in 2005.
Washing machines
Indesit Company makes around five million
washing machines a year. Production is geared
to consumers’ needs, environmental protection
and compliance with user safety regulations. The
development of appliances that can guarantee
top performance with minimum consumption of
energy, water and time and with scrupulous attention to the needs of the laundry too, is priority
for around 4,000 people in the various produc-
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GEI Award
Vittorio Merloni received the 2005 GEI Award
“in recognition and appreciation of important work in the fields of industry and trade,
with strongly positive effects for Italy’s image
overseas”. During the gala event in New York,
the “Gruppo Esponenti Italiani” presented
Mr Merloni with a sculpture by Arnaldo
Pomodoro.
Plus X Award
Indesit Company won a Plus X Award (innovation category) with Ariston’s new drawer fridge.
Big Splash
Indesit Company was given a mention for water
savings at its Blythe Bridge plant and was signalled as a company strongly focussed on innovation and respect for the environment.
Awards & aknowledgements
Indesit Company, one of Europe’s
most virtuous companies
The Company’s Jonathan project, its Ethical Code
and disassembly and recycling indices illustrated
in Brussels during presentation of “A European
Roadmap for business, towards a sustainable &
competitive enterprise”, were judged “best CSR
practices” at European level.
RoSPA Award
In Peterborough (UK), Indesit Company received
a prestigious RoSPA (Royal Society for the Prevention of Accidents) award for workplace safety
and quality.
Grand Prix Pubblicità Italia Award
The “Undersea World” ad produced for the launch
of Ariston’s Aqualtis washing machine won a
“special award” at the 19th Grand Prix Pubblicità
Italia 2006, being judged best film in the opinion
of the New York Festivals panel. Based on a creative idea by Leo Burnett Italia and directed by
Dario Piana, it also won a prize in the “Novelties”
category.
Home Innovation Award
Ariston’s new self-cleaning Touch Control oven
earned Indesit Company a Home Innovation
Award for the best home innovation of the year.
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Successful communication
The Indesit and Ariston brands in Poland won
awards in the brand and product categories respectively. Indesit’s campaign “It feels like jumping” was linked to Poland’s sky jumping team.
Suppliers Award
In its Suppliers Awards held in the UK last November, the Syrius buyers group judged Indesit Company “best white goods supplier” of the year.
Most Trusted Appliance Brand
For the 5th year running, Hotpoint was judged to
be the UK’s most reliable white goods brand in a
survey for Reader’s Digest.
IER Awards
The Hotpoint brand received a best press and TV
campaign award by the Independent Electrical
Retailers Magazine.
Golden PROpeller
Indesit’s “Take me home” initiative in the Ukraine
won a Golden PROpeller award as best belowthe-line project.
Ethibel Sustainability Index
Indesit Company was admitted in 2002 to the Ethibel Sustainability Index, the most authoritative
ethics rating agency in Europe. Ethibel recognized the Company’s genuine desire to do business ethically, in both the communities where it
operates and in its own internal workplaces.
First foreign investor in Poland
The Polish monthly “Integracja Europejska” rated Indesit Company “the biggest foreign investor
in Poland” in terms of spending, number of employees and sales.
Best buy
In a survey conducted in The Netherlands on
various types of washing machine, the Indesit
WI142 was judged the “best buy” by the Netherlands Consumer Association. The survey looked
at robustness, washing quality, price, water consumption and ease of use.
100 best ideas in 2005
The Spanish magazine “Actualidad Economica”
gave “100 best ideas in 2005” awards to Ariston’s
Integrated Ever Fresh system and Indesit’s On
Time washing machine and recognized Indesit
Company’s innovation capability and creativity.
Socially Responsible Plant Award
The 2005 “Socially Responsible Plant” award, adjudicated on the basis of economic, social and environmental indicators, was won by Albacina.
Instituted in 2003, the award involves all Indesit
Company’s production facilities.
Marisa Bellisario Award
Indesit Company took part in the 17th Marisa
Bellisario Awards and enjoyed excellent visibility in connection with an initiative of great resonance in society and the economy in Italy today.
This special event, entitled “Women and the
South: a possible enterprise”, aimed to draw a
profile of the business woman in southern Italy
and demonstrate the key role women can play in
re-launching the “Mezzogiorno”.
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Indesit Company’s corporate governance system
is based on the principles of the 2002 version of
the “Listed Companies Code of Self-discipline”,
which it adopted in the conviction that it helps
clearly define roles and responsibilities, strengthen our protection of stakeholders and their trust
in us, maximize value for shareholders and all
other stakeholders, and improve the transparency of financial communication with the market
and our own internal control structures.
In many areas of corporate governance the Company’s model reflects some of the most recent and
advanced regulatory standards and best practice
department to the CEO and to the chairman on
corporate affairs was formalized.
In 2006, the Company is overhauling its governance system to assimilate new legislation on
protection of investors and market abuse. Indesit
Company has already moved to modify the procedure for management and disclosure of pricesensitive information and set up a register of persons with access to such information.
Indesit Company’s administration and control
model is built around a board of directors, a statutory audit committee and external accountants.
The Board has set up three internal committees:
(such as the US Sarbanes-Oxley Act and the UK
Combined Code on Corporate Governance).
On the subject of Internal Dealing and the Remuneration Committee, Indesit Company introduced
blocking periods, during which Relevant Persons
are not allowed to carry out operations involving
Company stock, and halved the ceiling values for
disclosure to the market of completed operations.
The main development in 2005 was the introduction of new international accounting standards,
including IAS 24, and the adoption of rules that
consider auditing work and the office of statutory
auditor incompatible with other consulting engagements.
On an organizational level, measures were taken to
streamline direct reporting to the CEO: the planning and control function was integrated within
the finance and administration department, whilst
direct reporting by the legal and corporate affairs
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human resources, internal control and innovation and technology.
Board of directors
The board of directors is the central body in the
Company’s system of corporate governance, being responsible for defining, applying and updating the rules of corporate governance in observance of current legislation.
Further, the Board reviews strategic, industrial
and financial plans; approves operations defined
as “significant” on the basis of the internal procedure; periodically checks that the Company’s
organization and administration are adequate;
supervises the conduct of business in general;
carries out regular reviews of actual against programmed results; approves the Group’s ownership structure; and is responsible for the internal
control system.
The Board has thirteen directors, of whom two
are executive. Of the eleven non-executive directors, eight form an independent majority, as required by the 2002 Code.
The independent directors help guarantee fair
representation of all shareholders’ interests and
make for well informed and dispassionate debate
in boards meetings.
Human Resources Committee
The Human Resources Committee makes recommendations to the Board regarding the remuneration of executive directors and directors
holding special posts and that of the Group’s top
management.
The Committee has also been assigned the task
of monitoring the state of the organization and
management development plans and of signalling any action to take.
Internal control system
The internal control system is based on principles
incorporated in the main international corporate
models. It is the sum of various processes carried
out by the Board, managers and other Company
personnel and is designed to assure all stakeholders reasonable certainty as to the achievement of
business objectives in terms of business process
effectiveness and efficiency, reliability of economic and financial information, legal compliance
and safeguarding of the company’s assets.
The Company’s budgeting system is based on
cost centres linked to functional responsibilities.
Procedures for delegating powers are clear, publicly disclosed and defined in accordance with the
principles of separation of duties and controls.
The Company conducts its business on the ba-
sis of short, medium and long term planning. Its
planning and control function is the main engine here and is organized in such as way as to
ensure constant contact with top management
and a strong presence in all operating facilities,
thanks to production controllers in factories and
marketing controllers deployed in commercial
structures.
One of the structures verifying effectiveness and
efficiency is Internal Auditing, which checks on
the implementation, effectiveness and efficiency
of first level controls, observance of company
rules and procedures, legal compliance and the
quality of economic and financial information.
Internal auditing constantly analyzes business
processes and risks, identifies corrective action
and provides follow up to it.
Indesit Company has invested massively in upgrading the IT side of this function by adopting
integrated systems (SAP in particular) that deliver more effective controls whilst cutting costs.
Internal control committee
The internal control committee performs checks
on the internal control system; evaluates work
plans drawn up by Internal Auditing, from which
it receives periodical reports; evaluates bids from
accounting firms, their audit plans and the results presented in their reports; evaluates the adequacy and uniformity of accounting standards
employed in drafting consolidated financial
statements; and reports to the Board on its activities and on the state of the internal control system
during the approval stage of half-year and yearend financial statements.
The Committee operates in accordance with internal rules.
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The Committee periodically assesses the progress
of auditing activities with respect to the plan and
performs ongoing monitoring and supervision of
such activities.
In 2005, the Committee was also engaged in assessing the adequacy of the accounting standards
adopted following the transition to IAS and their
compatibility for the purposes of the consolidated statements.
Treatment of confidential information
Disclosure to the public domain of documents
and information regarding Indesit Company,
and especially “price sensitive” information (ie.
that might appreciably affect the prices of financial instruments) is disciplined by a procedure
approved by the Board of Directors.
Communication of such information is the reserve of the executive directors acting through
the communication and external relations department, which is in continual liaison with
the finance and legal departments to ascertain
whether information is price sensitive or in any
case requires disclosure, in which case it prepares a press release. Press releases are drafted
in formats approved by Borsa Italiana S.p.A. and
submitted to the chairman and CEO. Once approved, they are released onto the NIS (Network
Information System) circuit and published on the
Company’s web site.
Directors and department managers and all other persons with material access to news and documents concerning the Company in the course
of their duties are under obligation to keep such
data confidential and to use it exclusively for the
performance of their duties.
Code of conduct for Internal Dealing
Indesit Company abrogated the Code of Conduct
on Internal Dealing and adopted a new procedure disciplining disclosure to the market of operations involving Indesit Company securities by
“Relevant Persons” in the Group pursuant to the
provisions of art. 114 and followings of TUIF.
Financial communication plays a prime role in
Indesit Company in the process of creating value
for the Group and to this end the strategy is designed to favour a continual flow of information
between the financial community, the market
and the Company.
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The Company has appointed an investor relations
officer to establish dialogue with institutional
investors, other shareholders and the market in
general and to guarantee systematic and timely
publication of full information on its activities.
Financial communication procedures are based
on constant contacts with financial analysts, institutional investors and shareholders in order
to guarantee full and correct perception of strategic decision making and of the implementation and impact of such developments on business results.
Web site
Indesit Company also fosters dialogue with
shareholders by constantly upgrading its web site
(www.indesitcompany.com), which carries financial information and other data and documents
of interest to shareholders.
Documentation remains on the site for at least
two years.
Innovation and Technology Committee
The is committee was set up in 2004 to define the
strategies and investments needed to develop the
Company’s innovation capability. It will also take
all necessary measures to spread the culture of
innovation within the enterprise and stimulate
all the functions involved.
The Innovation and Technology Committee includes members of the board, a number of Group
managers and external experts from research organizations and business.
In 2005, the Committee addressed the theme of
a research model to adopt and collaboration with
external research bodies. Regarding the internal
organization structure, it was decided to set up
a Central Innovation Laboratory to manage long
term projects.
In 2005, the Committee co-ordinated projects
in collaboration with the Politecnico di Milano;
analyzed research funding possibilities, including public subsidies; and defined guidelines for
the innovation process, its organization and plan
of activities (by type of technology, market and
product).
The Company’s focus on innovation was highlighted by the setting up of an Innovation & Technology department to promote and strengthen
product innovation.
Company bodies
Board of Directors
Chairman
Managing Director
Directors
Vittorio Merloni
Marco Milani
Innocenzo Cipolletta
Adriano De Maio
Alberto Fresco
Mario Greco
Carl H. Hahn
Hugh Malim
Andrea Merloni
Antonella Merloni
Ester Merloni
Luca Cordero
di Montezemolo
Roberto Ruozi
Board of Statutory Auditors
Chairman
Auditors Alternate Auditors
Angelo Casò
Demetrio Minuto
Paolo Omodeo Salè
Maurizio Paternò
di Montecupo
Serenella Rossano
Independent Auditor
KPMG S.p.A.
Representative of the savings shareholders
Adriano Gandola
Innovation and Technology Committee
Chairman Adriano De Maio
Human Resources Committee
Chairman
Alberto Fresco
Mario Greco
Carl H. Hahn
Marco Milani
Members who are directors
Audit Committee
Chairman
Roberto Ruozi
Innocenzo Cipolletta
Hugh Malim
Vittorio Merloni
Sustainability reporting structure
Indesit Company’s social and environmental policies are managed by a steering committee. Made
up of representatives of the communication and
external relations, quality, administration and finance and human resources departments, it defines guidelines for the Company’s social and environmental policies in concert with the chairman
and CEO.
Projects are co-ordinated by the communication
and external relations department.
Andrea Merloni
Vittorio Merloni
Marco Milani
Members who are not directors
Valerio Aisa
Enrico Cola
Silvio Corrias
Marco Iansiti
Adriano Mencarini
Davide Milone
Pasquale Pistorio
Massimo Rosini
Giuseppe Salvucci
Andrea Uncini (Segretario)
Data are collected and processed by a complex, intranet based IT system.
Each plant produces six-monthly reports on the
social and environmental impact of manufacturing activities. Prepared by environmental and
human resources managers, these reports throw
light on the main causes of deviations from budget objectives so that corrective action can be
planned.
21
22
In 2004, the board of directors approved the organization
model pursuant to decree law 231/01 in line with Italian
best practice and with Confindustria recommendations
on prevention of offences.
The Model contains a list of procedures (already in place
or currently under implementation) designed to cover
risks attaching to activities susceptible to or instrumental in committing the offences in question.
Further, an integral part of the Model is formed by the
■protect and assist anyone who informs the supervisory body of behaviour incompatible with the Code by
safeguarding them from intimidation and threats and
guaranteeing that their identity and the information
they provided remain secret;
■prepare an annual report for the board of directors on
compliance with the Code and any programmes or initiatives taken to achieve such end.
The Code can be consulted on Indesit Company’s website
Code of conduct
Code of Conduct, which contains guidelines on conduct
that may be illicit for the intents and purposes of decree
law 231/01 and constitutes a basis on which to construct
a system of prevention and control.
The Code sets forth general principles disciplining the
workings of the Company, which acts in compliance
with the law; contains a series of rules of conduct to
abide by in relationships with certain interlocutors; requires that all operations and transactions must be correctly recorded, authorized, verifiable, legitimate, coherent and congruous and that the decision-making process
involved must always be verifiable; provides for penalties
commensurate with the seriousness of the infringements
committed.
The Code is an addition to the existing internal procedures that directly or indirectly reduce the risk of committing offences.
A supervisory body has also been instituted. It comprises two independent external members with the relevant
legal and business backgrounds and one internal member.
The tasks of this body are to:
■assure the Code is known to all concerned;
■review the Code and propose modifications reflecting
new legislation;
■assist in interpreting the Code;
■ascertain and assess infringements of the Code and
communicate such cases to the Company departments
charged with applying the relevant sanctions under the
provisions of law and labour agreements;
and on its intranet and is also displayed on notice boards
in all buildings used by management and employees.
Human resources management
In agreement with the main trade unions, Indesit Company has put in place an instrument designed to develop
a culture based on the interests of all the Company’s
stakeholders, whether internal or external. It aims to
guarantee growth in which the Company’s interests are
parallel with the well being of the communities involved
in its operations.
Indesit Company thus endorses its commitment to:
■actively helping to the eliminate exploitation of child
labour;
■sustaining and promoting basic human rights;
■challenging competitors’ bending of international regulations safeguarding child labour and other labour rights;
Indesit Company adopts International Labour Organization recommendations to guarantee decent working
conditions for its employees. In particular:
■the use of forced labour or labour in conditions of slavery or imprisonment is prohibited;
■observance of the minimum age for employment as per
ILO Convention 138;
■the right of workers to form and join trade unions is
endorsed;
■discrimination in terms of race, religion, political opinions and social origin is strictly prohibited;
■pay discrimination between men and women of the
same professional status is prohibited.
23
24
Quality Policy
The Quality Policy, based on management guidelines, addresses the entire workforce and is vitally important for the
success of the Company and the satisfaction of customers.
The Quality department makes sure that the Quality Policy:
■is appropriate to the Company’s mission and values;
■instils commitment to conform to product requisites,
achieve full customer satisfaction and maintain ongoing
improvement;
■provides for definition, measurement and monitoring of
specific objectives and indicators;
■is understood by all the Company’s personnel.
Processes and quality
The 10 Quality
Guidelines
■Quality is the will and the capacity to centre new
goals and develop new projects.
■Quality requires hard work, self-discipline and
motivation.
■Quality is responsibility, personal commitment
and support by the Management and all function
heads.
■Quality is planning and guidance by all the
Business Units.
■Quality is the involvement of all business
functions and the enterprise as a whole, not just of
quality specialists.
■Quality is the presence of a control network and
relationships of responsibility between the various
functions, from design and procurement to
production and sales.
■Quality is constant measurement, analysis and
improvement.
■Quality is constantly asking the questions: are we
improving? what are we doing to improve?
■Quality is sensitivity to the market and customers’
needs.
■Quality is above all maximum customer
satisfaction with products and services.
25
Quality
management
improvement
model
Purpose and sphere
of application
The quality management system is geared to ongoing improvement. The model for such improvement is
based on the following steps:
■laying down of Company guidelines, objectives and
processes capable of achieving results targeted on
the basis of external contexts, including the needs of
consumers and the market;
■responsible, self-disciplined observance of process
rules and controls by all organizational functions;
■monitoring and measurement of all Company processes, products and services (management control,
management system analysis, monthly meetings,
etc.);
■corrective action;
■definition of new objectives and programmes ensuring continual improvement of the system itself.
The quality management system involves the whole of
Indesit Company in terms of both processes (scope) and
organization (sphere of application), so all the requisites
of UNI EN ISO 9001:2000 apply.
Il Sistema di Gestione per la Qualità è descritto in appositi documenti secondo la seguente gerarchia:
To develop and implement the quality management system the Company has:
■identified processes and classified them as either strategic, primary or support;
■identified and documented processes in the form of
procedures; for each process it:
- identified the sequence of activities, inputs and outputs
for each business activity, responsibilities and control
points; and
- identified effectiveness and efficiency indicators with
which to measure the results of processes (each documented in a procedure);
■defined and documented sequences and interactions
between primary processes on the Processes Map;
■set up a monitoring system to track indicators, thereby
ascertaining achievement of objectives for the purpose
of continual improvement.
Level 1
Policy
& objectives
Level 2
Quality manuals
Level 3
Procedures
Level 4
Operating instructions
and specificities
Level 5
Quality recording
(forms & reports)
The Quality Management System is described in documents kept in a dedicated IT system (QMX) which
can also be consulted on line by the whole of the Company.
The Company’s quality management system is defined, implemented and maintained by the quality department and the quality system manager .
26
Scope
Design, development,
manufacturing,
sales and after-sales
service of domestic
equipment for washing
(washing machines and
dishwashers), cooking
and cooling.
Sphere
of application
The entire Indesit
Company Group:
- markets;
- four product lines;
- all plants, in Italy
and other countries.
All activities that impact on products and services offered
to customers come under the quality management system
and thus include:
■all strategic processes defining guidelines regarding
products, corporate image, the market and resources;
■all primary processes, from design to manufacturing,
from sales to planning, from logistics to customer ser-
vice; outsourced processes such as contract production
and logistics are also analyzed and special attention is
paid to business relationships with suppliers and quality
requisites;
■all support processes contributing towards the production of products and services, especially those that measure performance and assess results.
MISSION AND VISION
STRATEGIC PROCESSES
Planning &
investment control
Strategic
planning
Human resources
planning
Brand equity
Management
Risk
Management
PRIMARY MACRO-PROCESSES
Process development
& maintenance
Product planning and
development
Planning
CLIENT
Input
logistics
Production
Output
logistics
CLIENT
Marketing and sales
planning
Process development
& maintenance
SUPPORTING MACRO-PROCESSES
Procurement
Human resources
Client satisfaction, internal and external
Infrastructures
Process management
Both up- and downstream of the quality management
system is the customer.
In 2005, Indesit Company maintained its ISO 9001:2001
certification in all its plants. It also centred an important
goal it set itself the previous year, that of gaining ISO
14001 environmental certification for the Albacina plant.
This certification will be obtained by another four plants
in 2006.
2005
objectives
Activities undertaken
in 2005
1.Guarantee company-wide implementation of the
quality policy.
2.Maintain ISO 9001:2001 certification in all plants.
3.Initiate the ISO 14001 environmental certification
procedure.
1.Maintenance of ISO 9001: 2001 certification in all
plants.
2.ISO 14001 environmental certification for Albacina.
27
28
Economic development
29
Scenario
At the close of 2005, the global macroeconomic scenario was still looking fairly positive.
The main indicators showed that the world economy was continuing to grow, albeit
more slowly than in 2004 and with similarly uneven rates across different geographical
regions.
Unlike rapidly growing Asian economies, led by China, the USA saw its growth decelerate with respect to 2004 but still enjoyed a certain dynamism in terms of investments
and good employment rates, although there were also signs that inflation may be rearing its head.
Despite the prospects for improvement, Europe continued to be plagued by uncertainty.
The Euro was more or less stable in 2005 against the UK sterling and the US dollar but
lost ground to all the other main currencies that Indesit Company deals in, average
rates falling 1.7% against the rouble, 5.5% against the Turkish lira and 11.2% against the
zloty.
Sell-in by the white goods industry in 2005 was down 1.6% by volume in Western Europe
and down 0.2% in Eastern Europe, while the industry in the CIS saw growth of 6.0%
by volume. In Western Europe, the situation was particularly bleak on the UK market
(down 12.3%). Prices dropped in both Western (0.6%) and Eastern Europe (2.6%)..
Profit & Losses
With a slight drop in sales (1.2% to 3,064.2 million euro) due mainly to contraction of
volumes and the effect of the price/mix, the challenge in 2005 centred on the cost of materials (up 3.5% on 2005) and measures to contain such increases. The Group duly intervened to improve production efficiency (by cutting product/process costs, redistributing
production outputs and procurement sources and reviewing supply costs). The re-distribution of production already initiated prior to 2005 has enabled the Company cut labour
costs by 6% and, as a percentage of sales, from 17.0% in 2004 to 16.2% in 2005. 2005 also
saw the start of a re-organization of corporate staff functions to contain general and
administrative expenses. Although substantial results are expected to arise from such
measures in the course of the next three years, there was already in 2005 a reduction of
the impact on sales from 4.8% to 4.7%.
Income statement (million euro)
2004
2005
3,100
3,064
Ebitda
348
264
Ebit
199
122
Profit before taxation
160
93
Total net profit
101
50
37
46
Revenue
Tax rate (%)
These factors led on one hand to a downturn in EBITDA, from 348.4 million euro to
263.7 million euro (and from 11.2% to 8.6% as a percentage of sales), and on the other to
a controlled decrease in EBIT from 198.8 million euro to 122.3 million euro (from 6.4%
to 4% as a percentage of sales).
30
Lower financial charges (29.3 million euro against 33.9 million euro in 2004), higher
gains of foreign currency exchange and lower writedowns combined to limit the decrease
in PBT and net profits, which amounted to 92.8 and 50.4 million euro respectively (159.6
and 101 million euro in 2004). The tax rate rose from 36.7% to 45.7%, reflecting increased
tax charges, due above all to the higher impact of IRAP (regional tax on production activities) on PBT. Basic EPS dropped from 1 euro to 0.50 euro per share.
Financials
Financially, the year was very positive. Net indebtedness at the year-end was more or
less stable (517.5 million euro against 512 in 2004) thanks to tight management of working capital (down from 3% of sales at 1 January 2005 to 2.5% at 31 December 2005)
and investments. Of investments in tangible fixed assets, around 124 million euro, a
substantial portion (around 25% and scheduled to rise in coming years) was for new
product development. Over a third of total investments was for the purposes of eastward relocation of production (including the first logistics pole in Russia - around 30
million euro). Investments in intangible fixed assets amounted to around 32 million
euro, of which 22 million euro in capitalization of development costs.
Balance sheet statement (according with IFRS - million euro)
01/01/2005
Net working capital
Non-current operating assets
31/12/2005
93
78
2,233
1,269
Other current assets and liabilities and non-current liabilities
(370)
(310)
Net invested capital
956
1,037
Net financial indebtedness
512
517
Equity attributable to the Group
433
505
11
14
956
1,036
2004
2005
Minority interests
Equity and financial liabilities
Cash flow statement (million euro)
Cash flows from operating activities
227
192
Cash flows from investing activities
(219)
(167)
Cash flows from financing activities
(169)
(37)
Net cash flows
(161)
(12)
Consolidated revenue
(million euro)
3,100
3,064
EBITDA
2005 revenue
by geographical area
(million euro)
348
6%
264
31%
63%
Western Europe
Eastern Europe
Other countries
2004
2005
2004
2005
31
Sharemarket data (as of 31/12)
Share capital breakdown
2004
2005
EBITA by share (euro)
3.55
2.62
Basic EPS (euro)
1.00
0.50
Diluted EPS (euro)
1.00
0.50
Average no. of ordinary shares used for basic EPS calculation (thousand)
98,033.1
100,514.3
Average no. of ordinary shares used for diluited EPS calculation (thousand)
99,946.3
101,161.5
2.56
1.91
Dividend (euro)
0.361
0.360
Year average share price (euro)
13.83
10.45
Price per share/basic EPS
13.83
20.90
Book value per share **
4.50
5.16
Price per share/Net equity per share
3.07
4.05
Pay out ratio (%)
31.6
73.6
2.6
3.5
91.1
92.2
1,356
1,066
DEBT+Equity/Revenue (%) **
0.31
0.34
DEBT+Equity/EBITDA
2.74
3.93
Cash flow * (euro)
Dividend per share/price per share (%)
Share capital (thousand euro)
Market capitalization (million euro)
Data referred to ordinary shares only.
* Total net profits + amortization and depreciation.
** Figures for 2004 are stated using the balance sheet figures at 01/01/2005, the date IAS 32 and IAS 39 came into force.
Assets (million euro)
31/12/2004
31/12/2005
346.7
425.6
II - Tangible fixed assets
746.1
776.9
III - Financial fixed assets
136.8
113.3
A) Fixed assets
I - Intangible fixed assets
45.8
42.9
1,275.4
1,358.7
Inventories
330.5
342.8
Deferred liquidity
620.2
665.0
Deferred taxes
Total
B) Working capital
212.2
199.7
1,162.8
1,207.4
2,438.2
2,566.1
31/12/2004
31/12/2005
Group
472.4
504.6
Minority interests
137.8
14.4
610.1
519.1
Immediate liquidity
Total
Total assets
Liabilities (million euro)
A) Shareholders’ equity
Total
B) Medium/long-term payables
Reserves
149.4
150.9
Payables
502.9
594.3
Total
C) Short-term payables
Total liabilities
32
652.4
745.2
1,175.7
1,301.8
2,438.2
2,566,1
Fineldo S.p.A.
38.941%
Vittorio Merloni
1.503%
Merloni Progetti
0.967%
Ester Merloni
4.462%
Fines S.p.A.
6.562%
M. Cecilia Lazzarini 2.900%
Francesco Merloni 3.995%
Treasury shares
Float
9.770%
30.899%
Creation of value
Total value added in 2005 reached €706.1m and was distributed as follows:
■79.6% to human resources;
■7.5% to the government in taxes;
■5.6% to providers of loans (debt service);
■5.3% to shareholders (dividends);
■1.9% to the Company, including retained earnings used to self-finance the Group;
■0.1% to charity.
SOURCES OF VALUE ADDED (million euro)
2004
2005
A) Value of production
1 - Revenues from typical production:
3,201.5
3,141.0
1) revenues from sales and services
3,171.5
3,145.7
2) variations in product inventories, work in progress,
29.7
(4.7)
semi-finished and finished goods
3) variations in work in progress on order
2 - Revenues from non-typical production:
5) in-house construction
Total
0.2
-
14.4
23.4
14.4
23.4
3,215.9
3,164.4
1,744.5
1,791.2
448.2
479.9
52.8
45.1
B) Intermediate production costs
6) consumption of raw and auxiliary materials,
consumables and goods
7) costs for services
8) costs for use of third party assets
9) provisions for risks
10) sundry operating charges
Total
Gross value added, typical
7.3
5.5
12.1
10.4
2,264.9
2,332.1
951.0
832.3
30.0
27.0
C) Accessory and extraordinary items
Accessory revenue
- Accessory costs
12) balance of accessory items
6.4
1.2
23.5
25.8
Extraordinary revenue
4.0
26.1
- Extraordinary costs
38.8
36.7
13) balance of extraordinary items
(34.8)
(10.6)
Total
(11.3)
15.2
939.7
847.5
149.6
141.4
790.1
706.1
Gross global value added
- amortization
Net global value added
33
APPLICATIONS OF VALUE ADDED (million euro)
Value added breakdown
2004
2005
46.0
44.0
a) direct remuneration
423.0
396.5
b) indirect remuneration
128.0
121.4
597.0
561.9
58.6
42.4
Indirect tax
8.9
17.9
- subsidies
10.1
7.4
57.4
52.9
(%)
A - Remuneration of personnel
Non-employee personnel
2005
Employees
c) distribuited profits
Total
B - State
Direct tax
Total
C - Borrowed capital
Capital charges
Total
33.9
39.9
33.9
39.9
D - Share capital
Dividends (distribuited profits)
Total
Variations in reserves
36.7
37.1
36.7
37.1
Donations
64.3
13.2
64.3
13.2
0.9
1.0
0.9
1.0
790.1
706.1
F - Donations, external
Donations
Total
Net global value added
34
Remuneration
of personnel
Remuneration
of State
Remuneration
of borrowed
capital
Remuneration
of share capital
Company
remuneration
E - Company
Total
2004
2004 2005
75.6
79.6
7.3
7.5
4.3
5.6
4.6
5.3
8.1
1.9
0.1
0.1
Investor calendar of 2006
14/02/2006
Milan
Board of Directors
2005 fourth quarter results
(October-December 2005)
2005 preliminary results
23/03/2006
Milan
Board of Directors
Approval of the 2005 financial statements
Notice of the Annual General Meeting
27/04/2006
Fabriano
Annual General Meeting
(first call)
04/05/2006
Fabriano
Board of Directors
first quarter results
(January-March 2006)
04/05/2006
Fabriano
Annual General Meeting
(second call)
27/07/2006
Milan
Board of Directors
second quarter results (April-June 2006)
Exam of preliminary figures of the 2006
first half
26/10/2006
Milan
Board of Directors
First half 2006 results
Third quarter results (July-September
2006)
Annual General Meeting, Fabriano - 4 May 2006
35
36
Social sustainability
37
2005 objectives
■Attract, train and retain excellent, competitive and unique resources.
■Teach people to recognize and take opportunities.
■Provide a practical instrument for improving performance.
■Pursue and promote the concept of “simply better”.
■Provide opportunities for learning and sharing know-how.
Activities undertaken
■Recruiting plan
■Resources management
■Performance Management System
■Special projects
Identity & recruiting
The value that individuals produce in Indesit Company are of two types: internal (knowhow, corporate culture, innovation) and external (relational capacity). Together with
transparent and reliable communication, this capital is a guarantee of market credibility
and trust, it creates value for the Company and favours review of strategic choices.
Typical characteristics of Indesit Company people are: speed of action and orientation by
objectives, group spirit, efficiency and efficacy, innovation and attitude to change, striving for excellence, spirit of initiative, development in line with company values.
The value of Indesit Company’s human capital may be described as a combination of the
following factors:
■the individual characteristics people bring to their work: intelligence, energy, positive
attitude, reliability, commitment;
■aptitude for learning: readiness, imagination, creativity and common sense;
■motivation in sharing information and knowledge, with an objective-oriented team
spirit.
Growth through development of human resources
In 2005, 17,306 people worked in the Group and 31% of them were women. The fig-
38
ure was down on the previous year due the closure of
the Setubal plant in Portugal and the Thionville plant
in France under the 3-Year Plan. The country with the
highest number of people is Italy, followed closely by
the UK and Russia. These three countries account for
85.8% of the Group’s human resources. In 2005, there
was an appreciable rise in the number of employees in
certain countries where Indesit Company intends to
consolidate its presence, including Poland, Turkey and
China.
Nearly 90% of people in Indesit Company are on indefinite
term contracts.
Regarding their qualifications, the Group is determined to
raise the average educational level of its employees. 72.8%
of the work force have high school or university qualifications. Of the graduates, the main specialization is engineering, followed by economics and finance.
The recruitment system itself plays an important part in
attracting the best resources to Indesit Company. It makes
intensive use of the internet (over 15,200 CVs were received on line) and is in direct contact with major universities and business schools for its future needs. On joining
the Company, new personnel are immediately assigned to
tutoring and orientation programmes.
The Group is also raising the average educational level
of its employees by providing training courses. In 2005,
nearly 20,000 hours of training was provided, involving
around 90% of personnel.
To encourage development, the training function is backed
up by a merit policy based on job rotation, career advancement and cash incentives within a frame of personal and
group targets. The policy is also geared to the time scales
of people with families, especially women.
It is thanks to this human resources policy that people working Indesit Company can count on fundamentally important conditions such as professional development and fulfilment of career ambitions, work safety and social prestige.
Group human resources
Italy
MEN
Managers
Employees by country
32.8%
Portugal
0.3%
White collars
31.8%
France
2.0%
Workers
67.2%
United Kingdom
1.0%
WOMEN
Managers
0.2%
White collars
30.7%
Workers
69.1%
Type of contract
28.4%
Poland
6.8%
Russia
24.6%
Turkey
3.1%
Other
2.0%
Distribution of human
resources by industrial area
Indefinite term
89.8%
Fixed term
10.2%
Industrial area
UK
Industrial area
Lipetsk
Industrial area
Łódz
Industrial area
Northern Italy
Industrial area
Central Italy
18.4%
32.0%
9.2%
10.5%
30.0%
Level of education
Number of Group employees and average years of service
13
19,476
19,000
12
11
18,138
10
17,306
2002
2003
Managers
2004
White collars
Number of employees
2005
Workers
9
8
Minimum
27.2%
High school
38.1%
University
34.7%
Economics
disciplines
Law
16.2%
Humanities
1.0%
2.2%
Engineering,
45.5%
IT, mathematics
Others
35.1%
39
Assessment and development
of human capital: the PMS
(performance management system)
Indesit Company cultivates its intellectual capital as a key factor in achieving excellence.
Innovation, determination, flexibility and good relational capacities are what distinguish
individuals working in a successful organization.
Over the last few years, Indesit Company’s human resources function has developed a
performance management system (PMS) based on a new approach involving sharing of
objectives by managers and their staff. Under the PMS, each employee has well defined
individual and group objectives geared to making the best of his or her personal qualities. It also provides for self-development plans, which help employees, and their managers, to fully understand individual needs and aspirations and shape their own personal
and professional development.
The PMS went on line, on the Company intranet, in 2005 and is fully operational.
Safety
Indesit Company keeps its workplaces in conformity with EU safety standards. Ensuring
safety throughout the Company is a moral duty as well as an economic advantage.
A safety plan provides for ongoing adjustment of procedures in step with new national
and European legislation aimed at creating a workplace that is risk-free and sustainable.
Indesit Company’s safety policies are managed by an environment and safety commission whose tasks also include setting improvement targets needed to achieve and maintain excellence in terms of employee health and safety.
In 2005 1 there was a further reduction in the number of accidents in plants (total 232).
The frequency rate dropped to 9.93 and the seriousness index to 0.29.
1
40
The total number of accidents in 2005 also includes the Łódz cooling and Lipetsk washing plants opened in 2004 and excludes Setubal.
Internal communication
Indesit Company’s internal communication is managed by the communication and image department.
Whose main objectives are to:
■manage information flows;
■involve employees in corporate life and make them feel part of “one single company”;
■foster attitudes of active collaboration, building of projects and achievement of organizational results.
Traditional instruments (such as daily press reviews, video reviews and monitoring of major press agencies) keep employees informed on how the media see Indesit Company.
Quantum leap
The agenda for 2005 was to continue transforming internal communication from:
Passive
Active
Static
Dynamic
Local
Transnational
Sporadic
Programmed
The new Aqualtis washing machine: the face of innovation
Indesit Company produced an internal communication campaign for the new Ariston washing machine. It spoke 18 languages and involved all the Group’s 17,000+ employees spread
across 18 plants and 22 branches.
The aim was to make everyone aware, and proud, of the Company’s innovation capability, to
make them feel actively involved in the communication process and thus help them participate in Company objectives and values.
Lasting a number of months, the campaign was in three stages. A teaser phase aroused employees’ curiosity about the project. The climax of the second phase was a a series of photo
shoots in which the Indesit Company community was invited to smile into a camera.
In the last phase the photos were assembled to form an image of the Aqualtis and produce
two giant posters to put on the front of the Fabriano headquarters and the Comunanza facility, where the Aqualtis is made. There was then a draw, in which one of the people in the
photo won a trip to Marrakech.
“Aqualtis, the face of innovation” was the campaign’s pay off, associating the concept of innovation embodied by the product with the photographed faces of all the people who worked
on the project.
41
“We reap what we sow.
Our progress towards Quality”
In the first quarter of 2005, a series of projects to improve quality throughout the Company were launched. One of them - “We reap what we sow” - focussed on human resources.
The project originally had two objectives:
1) to promote the development of knowledge on the theme of quality;
2) to make people on all levels of the Company aware of the importance of quality.
And later acquired a third:
3) to give priority to R&D and EDT resources to help achieve 1) and 2).
First objective
A map was made of the competencies of Key Contributor Positions, identifying 16
roles (out of 520 people) and 20 critical knowledge areas/competencies. A training plan
(Knowledge Action Plan) was then developed to remedy inadequacies.
Second objective
This was based on an analysis of questionnaires provided by a sample of 5% of the Group’s
factory personnel, the aim being to understand the levels of knowledge and awareness of
the theme of quality in production plants.
A number of sub-projects (Involvement Action Plans) were then initiated to promote the
subject in plants:
■Quality Corner
A quality corner, designed with a standard format and graphics, was set up in each
plant.
■Quality points
These were set up on production lines in all plants; their design too was duly co-ordinated with Corporate Identity.
■LCD
In the Manisa and Brembate plants, LCD monitors are being experimented. 16 flat
screens were set up on a production line so that operators can display constantly updated quality indicators and illustrations of key aspects of quality in their everyday
operations.
■Basic training
Courses on quality indicators were organized and a video was produced for the purpose (in all the Company’s languages). The video also has an introduction by Managing Director Marco Milani.
At the end of the courses, participants were given a folder summing up the key concepts dealt with, and an envelope with a sunflower seed in it.
42
Third objective
The third objective was further mapping of competencies in the R&D and EDT areas
and the involvement of around 120 designers. The 3-day operation aimed to bring the
world of design and that of customers into closer contact. Visits, debriefing and discussions were organized.
The project was later given the name “We reap what we sow. Our progress towards Quality” and new objectives were defined. The initial “Quality Week” focusing on production
plants became “Quality Weeks” which will be centred, in turn, on R&D, Marketing,
Service, suppliers and all other categories involved in the development of Quality in the
Company.
Insight:
A new Insight into our world
In 2005 a new Company intranet was set up - Insight.
Insight replaced the three local intranets that accompanied us over the years and is now
the Company’s main instrument of internal communication.
Insight is a new world that grows everyday with news and information on activities and projects that involve the Group. Insight is a workplace in which everyone can share thoughts on
their work with everyone else. Insight shortens distances, makes knowledge truly common
and strengthens people’s sense of belonging.
Insight’s name was chosen because it’s a friendly word and easy to remember.
Insight is an illumination, an idea, a panorama that can also focus very sharply on details.
Insight values
Insight facilitates.
Insight simplifies work by providing common tools. Insight cancels out distances and
makes people feel part of “one single company”.
Insight informs.
Everyday Insight informs its users on the Company’s news and projects. It enables
people to gain in-depth knowledge of product development and Group brands and
watch them as they evolve.
Insight unites.
Insight is for sharing experience and opinions. It fosters the development of the community and is driven by contributions from people throughout the Company. It transmits
images, sounds and colours that are Indesit Company.
Insight creates value.
Insight brings out the value of the cultural differences within the Company. It’s a means
of communicating different styles and at the same time creating a common identity,
made up of symbols and values.
Insight is co-ordinated by an editorial team comprising Indesit Company employees in
various countries. Their task is to gather and sort useful information to put on the website and to keep it dynamic and constantly updated.
Insight provides news, working tools and interactive space for creativity and self expression.
43
Consumers
To fully satisfy consumers’ expectations, Indesit Company analyzes their needs, defines
product characteristics accordingly and designs suitable forms of communication for
consumers.
Brand awareness
A survey conducted to measure spontaneous and total awareness of the Company’s
brands in 22 countries found that Indesit was the best known at international level.
Objectives for 2005
■Act with transparency and fairness.
■Be sensitive to consumer needs.
■Offer innovation in products and services.
■Guarantee maximum product quality.
■Implement clear and coherent brand strategies.
Service
Objectives for 2005
■Consolidate leadership in Italy and the UK and upgrade
operations throughout the rest of Europe.
■Strengthen customer loyalty by continuing to improve
service levels.
Activities in 2005
■Development of technological infrastructure: single
Call Center platform.
■Training: new training facilities in Italy and Spain.
■New organization in Belgium and upgrading in Far
East.
Having been amongst the top performers since 2004, the
Group’s objectives for 2006 are to consolidate its leadership in Italy and the UK and strengthen its position in
other countries.
Indesit Company has a network of over 5,000 engineers
dedicated to providing high level service. They are either
Indesit Company personnel or service partner employees,
depending on the country concerned.
In 2005 too, the main investments in the after-sales area
focussed on technology, training and service engineer
documentation, as well as on a series of after-sales products and services for customers.
On the technology front in 2005, the Remote Assistance
44
project launched in 2004 in the washing business area saw
implementation of diagnostics, reporting and download
function e-eprom in all Group products. This was made
possible by the Electronics Development and product
R&D teams. Further, new documentation for customer
service engineers was introduced (Quick Service Guide).
Translated into several European languages, highly innovative and easy to consult, it provides information on
all the electronic products launched by the Group over
the last four years and how to solve problems, product by
product.
The new troubleshooting functions and documentation
have helped boost the service structure’s image of professionalism in the eyes of users.
In 2005, education and training activities were stepped
up in terms of both spending on organization (20% over
2004, plus two new teaching facilities in Italy and Spain)
and hours and numbers of participants.
Lastly, the Service division initiated a series of programmes to improve the level of after-sales service, covering spare parts, new lines of professional accessories
(such as “My Clean”) and extensions to the GDO warranty. Such improvements in the sphere of domestic appliance maintenance ensure years of total confidence for
users..
Brands
Indesit
Indesit, the Group’s pan-European brand, was acquired in 1987. Its philosophy is built
around four main qualities - simplicity, reliability, robustness and involvement. Indesit
wants to make consumers’ lives simple and enjoyable by giving them more time to cultivate their interests and do sport.
The target consumer is a young, dynamic working person who wants domestic appliances to be efficient, simple and reliable.
Ariston and Hotpoint
Ariston is Indesit Company’s longest standing brand. Hotpoint is the leading white
goods brand in the UK. In 2005, Indesit Company started to align the two brands in order to improve the effectiveness and efficiency of the Group’s approach to customers and
to leverage the recognized strengths of the two brands, thus consolidating their market
leadership.
In 2006, Ariston and Hotpoint will therefore be addressing the same target: people who
really love their homes (“passionates”) and want them to be genuine, functional and
comfortable. “Our ideas. Your home” will be the two brands’ claim in offering their consumers innovative solutions that help them manage and enjoy their homes more and
more everyday.
Scholtès
The prestige French brand acquired in 1989 and launched Italy at the end of 2003 is to
become Indesit Company’s international brand in the top-end built-in range.
Elegance of design, choice of materials, constant technological innovation - these are
the essential ingredients that Scholtès provides for kitchen creativity and imagination.
Because Scholtès has always cultivated a genuine passion for the art of cooking and is a
guarantee for those who appreciate the most genuine pleasures and finest flavours of life.
The target consumer has sophisticated tastes and is demanding in terms of both design
and performance.
Brand loyalty
In 2005, Indesit Company continued to monitor customer loyalty in France, the UK,
Italy, Poland, Portugal, Russia and Turkey and across all product categories. The surveys
measured the percentages of sampled users keen to buy another Group product. The
most significant growth in brand loyalty was seen in Russia, in terms of both product
categories and brands. Indesit’s leap forward in the cooking business, from 48% in 2004
to 62% in 2005 was emblematic.
Of the product categories, dishwashers enjoyed the biggest surge in brand loyalty, rising
19 percentage points in Italy and 18 in the UK for the Indesit brand.
Of the four brands, Indesit made the most progress in terms of both countries monitored and product categories. In the washing business, there was a significant increase in
French consumers willing to buy an Indesit product (from 29% to 36%), whilst the same
brand in Poland moved up from 35% in 2004 to 44% in 2005. In the cooling sector, Ariston brand loyalty was stable in Italy and Russia, whilst Indesit enjoyed strong improvements in the UK (from 27% to 38%) and Poland (from 37% to 46%).
45
Indesit Company
stakeholders
All enterprises are expected to show social responsibility toward their stakeholders, who
have certain expectations regarding companies’ activities, being directly or indirectly
affected by their business choices and conduct.
It is a fundamental priority at Indesit Company to ensure communication and dialogue
with stakeholders providing a transparent platform for monitoring business activities
against stakeholders’ expectations. This is why listening to stakeholders has always been
a keystone in Indesit Company’s business philosophy.
In the last few years, Indesit Company has upgraded its relations with stakeholders and
deepened its understanding of their perceptions of the Company’s social responsibility
initiatives. Such initiatives are geared to constant improvement of the Company’s performance in terms of both social and environmental responsibility.
Stakeholder relations are built on:
1. Listening: customer satisfaction surveys, analysis of customers’ suggestions regarding
business policies and the effectiveness of specific initiatives, research on the Company’s positioning.
2. Dialogue: sharing of information for mutual benefit.
3. Endorsement: authoritative judgements on the Company’s CSR initiatives and relative communication, including indications on areas for improvement.
Customers
Quality and accessibility of services ■
Transparency and clarity ■
Customer satisfaction ■
Privacy ■
Society
■Investing in the community
■Local development
■Solidarity
■Environmental quality
■Research and innovation
■Socially responsible business initiatives
Suppliers
■Conditions of supply
■Partnership
■Social and environmental requisites
Shareholders
Corporate Governance ■
Safeguarding of minority interests ■
Financial returns ■
Remuneration ■
46
Personnel
■Jobs
■Professional training and career development
■Pay
■Equal opportunity, no discrimination
■Health and safety
Suppliers
Suppliers Convention
January 2006 saw the 6th “Winning together” Convention, held in Rome. Indesit Company organizes this event every year to inform suppliers of its results in the old year
and its objectives for the new year. During the Convention, the customary awards were
given to the best performing suppliers in terms of quality in the three supply categories
(raw materials, components, transformation). Rossella Bronzi collected the raw materials award for Dow Plastic and Thermosets, Kathy Lia took the components award for
Welling and Raffaele Laezza picked up the transformation award for Comap.
New logistics portal
At the end of 2005, Indesit Company launched a new web area dedicated to relations
with suppliers. This new portal is another step towards implementing an “extended company” model, i.e. one that’s open to collaboration with its business partners to achieve
maximum efficiency.
The three main objectives are to:
1.regulate physical flows of loading/unloading vehicles across all distribution centres,
using warehouse planning software;
2.improve monitoring of physical handling in terms of quality and promptness of information and facilitate info flows between Indesit Company and external logistics
operators;
3.create a data base supporting operations and management reporting.
The suppliers’ web area can be used to:
■apply to become a supplier;
■consult and download supply procedures and specifications;
■check purchases by product type and geographical region;
■access the newsletter.
47
Community
Restoration of the “Intercession” polyptych
Thanks to funding from Indesit Company, Gentile da Fabriano’s “Il Polittico
dell’Intercessione”, long thought to be lost, has been restored to its pristine splendour.
Painted during Gentile da Fabriano’s time in Florence (1420-1423), the work consists of
five panels depicting Saint Ludovic of Toulouse, the resurrection of Lazarus, Jesus and
the Virgin Mary interceding with the Eternal, and Saints Cosma, Damiano and Giuliano and Bernardo.
Since the 17th century (at least), the polyptych had been kept in the church of San Niccolò Oltrarno in Florence, where it was damaged by a serious fire in 1987. Until recent
studies, the completely illegible painting was believed to be unrecoverable.
The restoration project made the news because there are only 30 extant Gentile works
in the whole world. After three years work by Opificio delle Pietre Dure in collaboration with various scientific bodies in Italy and elsewhere, the polyptych went on show in
Florence’s Palazzo Medici on 18th February 2006.
It was subsequently displayed as the central work in an exhibition entitled “Gentile da
Fabriano and the other Renaissance” in Fabriano. The work is currently on display at
Company headquarters for the benefit of employees and will be returned to San Nicolò
Oltrarno as its definitive home..
Indesit Company and the CGIL
The CGIL is celebrating its centenary this year, having been founded in 1906
when chambers of commerce and industry federations decided to set up a
“Confederazione Generale del Lavoro”.
Over these 100 years, words like rights, dignity, participation, respect and solidarity have entered everyone’s vocabulary of rights.
The centenary programme of conventions, exhibitions, music, theatre and
film still includes many upcoming events sponsored by Indesit Company,
which has always been an active player in the labour market and a staunch
promoter of cultural events in favour of Italian industry worldwide. In 2006,
for example, Indesit Company took part in “Tempo Moderno: Lavoro, macchine e automazione nelle arti del ‘900” and “I Costruttori: il Corpo del Lavoro
1906/2006.
48
Volleyball: Indesit Company sponsors the European Champions’ League
After three years, Indesit Company reconfirmed its ties with volleyball as the sport that
best expresses the values of its Indesit brand: dynamic spirit, simplicity and European
identity. The Indesit brand was in fact the title sponsor of the European volleyball Champions League. The prestigious and gruelling Championship came to a spectacular close
at the men’s and women’s finals in Rome in March 2006.
This year, Indesit Company for the first time offered a special prize the winners of the
Rome event and for three sporting associations with an established reputation for social
work.
All the members of the winning team received an Indesit Graffiti fridge, while the aggregate value of all the fridges was donated to the following sports associations that work for
handicapped and other disadvantaged people: Pallavolo Marino and Special Olympics
Italia Onlus (supporting families with handicapped children) and PSG Borgo Don Bosco
(sports promotion and social work in disadvantaged areas in Rome).
Indesit Company attaches particular importance to this initiative as an expression of the
social responsibility with which the Company has always operated on the market.
“Our contribution to sport, and in particular to those less fortunate than ourselves, is
in Indesit Company’s DNA; it spurs us on to cultivate social progress alongside the economic growth of our enterprise,” explained Indesit Company chairman Vittorio Merloni.
49
Environmental sustainability
Environmental policy
In recent years, the environment has become a priority concern in both economic and
social as well as industrial policies. Indesit Company’s commitment to sustainable
growth is both ethically motivated and a key element in business management, as it is
also a strategic approach providing competitive edge.
Only a strong commitment to environmental management enables the Company to
guarantee certain fundamentally important capabilities, such as:
■prompt response to complex market needs, by offering increasingly eco-compliant
products and services;
■ongoing improvement in terms of production compatibility with territorial needs and
environmental safety.
Over the years, Indesit Company has developed a business philosophy that carefully
considers local resources and acts with respect for the environment through innovative,
low environmental impact design solutions. Research into ways of reducing consumption and enhancing simplicity of use are continually improving products and their users’ quality of life.
Every year, both in-house and in stakeholder relations, Indesit Company organizes info
and awareness raising campaigns regarding improvements to the environmental impact of its products and the processes that make them.
Indesit Company’s environmental policy is defined by the environmental safety manager and is binding on all personnel.
The current environmental policy provides for:
■scrupulous compliance with all environmental laws and standards and voluntary
commitments;
■commitment to ongoing improvement of environmental performance, including the
prevention of pollution;
■a commitment to compliance with the relative environmental legislation and regulations applicable and other requisites the Company has undertaken to provide;
■waste generation and management maximizing recovery and recycling in preference
to disposal;
■documentation and presentations for employees.
Objectives for a sustainable future
Indesit Company’s environmental policy sets the following objectives:
■identify areas in which to improve the Company’s environmental management system through internal initiatives and monitoring of indicators provided by research
groups;
■manage production to minimize impact on surrounding territory;
■develop innovative and competitive products that are environmentally compatible;
■make environmental-social sustainability a key aspect of business philosophy across
the whole organization;
■engage suppliers in relationships and joint action to bring about their adoption of
“responsible” environmental polices;
■guarantee customers increasingly high levels of safety in product use.
52
WEEE and RoHS Directives
In December 2002, the European Union introduced new legislation on the disposal of
electrical and electronic waste (WEEE, Waste Electrical and Electronic Equipment) making manufacturers responsible for recovering and disposing of discarded products.
The European Parliament and Council also adopted Directive 2002/95 (RoHS - Restriction of the Use of Certain Hazardous Substances in Electrical and Electronic Equipment),
under which electrical and electronic appliances put on the market from 1 July 2006
must not contain pollutants.
Indesit Company has put stringent procedures in place and created a web system to ensure compliance with the Directive. All suppliers have been informed that components
not complying with RoHS will cease to be acceptable as of July 2005.
All suppliers, in fact, are invited to access the website and declare any of their components that contain substances outlawed by the RoHS Directive.
Indesit Company’s deep understanding of all environmental issues enabled it to handle
the new legislation in a manner that has become a case history in successful environmental management.
Consortiums
Indesit Company is a founder member of several consortia providing for disposal of
products at the end of their life cycle (WEEE Directive). It helps set up such bodies
and oversees planning activities in order to guarantee implementation within the legal
deadlines.
Such consortiums are the response of major white goods manufacturers to calls to eliminate pollution, including damage to the ozone layer, and to maximize recovery of materials for re-use in production processes.
Indesit Company’s commitment to and expertise in such environmental action have
always been key aspects of its industrial philosophy.
Austria
Belgium
Denmark
Finland
France
Germany
Greece
Ireland
Italy
Luxemburg
The Netherlands
Poland
Portugal
Czech Republic
Slovakia
Spain
Hungary
United Kingdom
UFH
RECUPEL
EL-RETUR
SERTY
ECO SYSTEMES
EAI
APPLIANCE RECYCLING
WEEE Ireland
ECODOM
ECOTREL
NVMP
ELEKTROEKO
AMB3E
ELECTROWIN
ENVIDOM
ECOLEC
ELECTROCOORD
REPIC
53
Research & innovation
Research and development are the basic strategic ingredients in which Indesit Company
invests products and resources every year, in pursuit of a policy that has enabled it to
be amongst the companies that have grown most in this era of globalization. Indesit
Company has always seen innovation as a prime factor in international competition.
Innovation requires an attitude for change and new ideas with which to enrich our business culture.
Innovation is vital across the entire organization. Focusing on consumers’ needs is what
enables Indesit Company design teams to develop appliances that can guarantee top
performance delivered by technology that’s intuitively easy to understand and use.
Nell’ambito della direzione Innovazione e Tecnologie di Indesit Company è stata istituita
la funzione Intellectual Property Management volta a garantire con la massima efficienza
la giusta protezione delle invenzioni prodotte all’interno della Società con l’obiettivo di tutelare al massimo i vantaggi competitivi derivanti. Al suo interno sono state formalizzate
diverse attività per la creazione di una rete di alleanze strategiche mondiali per allargare
l’orizzonte di riferimento di Indesit Company al fine di mantenere efficienti i rapporti con
il mondo dell’Innovazione Globale in settori anche non competitivi.
L’innovazione in Indesit Company abbraccia anche una serie di osservatori tecnologici
sulle principali direttrici tecnologiche dell’industria del bianco: Materiali e tecnologie di
processo, Tecnologie Elettroniche Avanzate, Accessibilità, Interazione uomo-macchina
(usability), Riduzione del rumore e Coerenza e rispetto dell’ambiente tramite la focalizzazione sull’efficienza energetica e i materiali riciclati.
Indesit Company operates on “platforms”: it has developed a production system that
affords a high degree of process standardization, downstream of which products can
be suitably personalized in the final stages. The Company thus achieves effciency, flexibility and the capacity to customize. On the IT front as well, the Company has attained
publicly recognized levels of integration and innovation that provide a model of best
practice for the whole of our industry.
The Innovation and Technology committee continues to give management guidance
on the strategies and investments needed to boost the Company’s innovation capability
and disseminate innovation culture throughout the entire organization.
Patents registered
(not expired)
27
20
2004
2005
CAE - Computer Aided Engineering
Within the framework of the MTP CAE project regarding introduction of Computer
Aided Engineering methodologies, Indesit Company organized a technical workshop
in its Fabriano headquarters to promote and support the project’s aims. The event involved over 150 people, including managers and specialists from Indesit Company’s
Indesit Company’s electronics research and design centre, born with Wr@p (Web Ready Appliance Protocol), has developed a new communications technology that puts products online with no additional cost to
the end user and will be made available to all white goods producers.
A process launched in 2004 to develop and implement a common electronics platform will eventually lead to
100% digitalization of all product lines (at present only dishwashers are all digital). Another process is underway to standardize control logic in all Group products so that the consumer’s relationship with electronics
can be simplified without any sacrificing of product innovation.
54
volved over 150 people, including managers and specialists from Indesit Company’s
Technical Divisions, GPP, Quality, Sourcing, HR, IT and other functions. The workshop
first looked at presentations of best practices in other industries that use CAE (Ducati,
Immergas, Sit, Tesco, Teuco); these reports focused on experience gained and problems
encountered during the CAE implementation process and on the opportunities and
potential benefits of systematic application of CAE methodologies, in terms of timing,
costs and quality. This was followed by presentations by Indesit Company people. Afterwards, in the Show Room, the Company’s main software and engineering services
suppliers presented a comprehensive selection of technologies and systems, including
virtual mock-ups with hands-on demos.
Zaha Hadid
Scholtès products formed part of an exhibition by Zaha Hadid in the prestigious Guggenheim Museum in New York. An architect whose formidable projects have earned
him international fame (2004 Pritzker Award), Zaha Hadid focused his design capabilities on the kitchen in the futuristic “Z.Island by DuPontCorian” project. Presented
to the public during the 2006 edition of the Milan Design Week by DuPont in collaboration with Ernestomeda and Scholtès, the project creates an kitchen that is both
innovative and functional.
The kitchen is made of DuPont’s Corian, an exclusive high performance material.
Zaha Hadid used this to create an innovative kitchen offering an array of functions in
a limited space. The kitchen thus becomes a multi-media ambience where you can surf
the internet, listen to music and even create your own lighting and sound effects.
The products mounted inside it are all Scholtès appliances: an induction hob, an
Attitude line oven with a lateral door, a close-away dishwasher and a built-in fridge/
freezer. The Scholtès brand was chosen as an exponent of new generation technology and a synonym of innovation and style, of solutions that grace an ambience with
avant-garde, high-performing technology.
EcoTool
Indesit Company pursues an environmental strategy that seeks to safeguard and improve the quality of territories and the environment as a whole, to protect health promote rational use of natural resources.
In line with European Union environmental policies as well, Indesit Company adopts
the principle of preventive action and has developed certain instruments that favour the
development of a common culture in this field.
One such instrument is EcoTool, which enables designers to fulfil their obligation to
design eco-compatible appliances that comply with EU standards, limit generation of
waste and exclude substances harmful to the environment.
The multi-faceted, intranet-based EcoTool is the Company’s principal point of reference
in the field of national and EU legislation, Ecodesign methods and strategies and recycling of materials and components.
It provides a database of environmental analyses of products carried out since 2000 on
all four production lines, as well as a News + Newsletter section for keeping up to date
on new developments in recycling.
55
Products
With the complexity of products and the introduction of increasingly stringent environmental legislation, Indesit Company has naturally developed special design instruments. It
launched a number of projects geared to the WEEE Directive to facilitate disassembly of
appliances at the end of their life cycle.
Internally measured product recyclability indices help designers design for the environment
and check that the results of their work are in line with WEEE objectives.
Such indices are qualitative and includes the following:
■number and type of screws;
■disassembly operations requiring different components to be cut apart;
■irreversible joints between components made of different materials;
■number of types of material in a product;
■number of components in a product;
■plastic parts weighing over 50 g not marked with an ID symbol;
■non-recyclable materials;
■total weight of product.
Each of these parameters is given a score and the scores are aggregated to produce a
product’s degree of recoverability/recyclability, which can be used on either a total or
partial bass to compare with other appliances.
Use of disassembly and recycling indices enables Indesit Company to opt for domestic
appliance design solutions in line with its environmental policies and its CSR commitment in general.
With a number of recycling operators, Indesit Company is experimenting the quality of
materials obtained in the recycling phase. A pilot project was launched in 2005 to assess
the feasibility of using recycled materials to make certain product components.
Cooling
Thanks to the launch of the new 60 cm fridge platform, Indesit Company is now able
to produce a full range of Class A+ products and also, uniquely, a number of models in
Class A++ with the lowest consumption in the industry.
Further, a range of models with the Ever Fresh function was introduced. Ever Fresh is an
integrated vacuum preservation system that can triple food preservation times. Another
environmentally oriented product is AquaCare, which filters mains water to make it like
bottled water, thus cutting out purchasing and disposal of plastic bottles.
Cookers, ovens and hobs
Energy consumption by ovens and cookers with electric ovens was more or less stable in
models developed in 2005: 0.79 kWh (Class A).
To further rationalize use of energy and thus improve overall energy savings and reduce
atmospheric pollution, Indesit Company designs models to be highly energy efficient:
100% of free-standing models, 100% of built-in models with the Fast Clean (pyro) function and 80% of Experience line ovens are in Class A, and the remaining 20% are in
Class B.
56
Dishwashers
The use of electronics in products has enabled Indesit Company to raise
quality standards by reducing energy consumption by an average 5.5% in
a normal 12-cover cycle.
85% of dishwasher products are in Class A in terms of energy consumption and performance; washing times, for example, have been cut by over
30%.
Washing machines and dryers
Of the nearly five million washing machines produced in 2005, 95% were
in energy Class A.
Since 1990, Indesit Company models have cut energy consumed during
washing cycles by an average 45% and water consumption by over 50%,
thus reducing running costs. Only 52 litres of water are needed for a 5
kg wash cycle. The Group’s latest innovation - Aqualtis - is an important
achievement in the drive to reduce environmental impact. Its characteristics include a load capacity that’s 50% bigger than other machines of the
same size, improved ergonomic design and a further 10% reduction in
energy and water consumption with respect to Class A+ machines. Indesit
Company’s advanced technology has also brought down the noise index
by 10 decibels.
Over 2004 and 2005, technological innovations at Hotpoint led to the development and launching of a new range of condensation and ventilation
dryers (made at Yate) handling up to 7 kg of laundry.
Average daily consumption by fridge-freezer
(kWh/24h)
1.83
1.61
1.44
1.46
1.12
1.08
0.90
1.10
1.09
1.02
1.00
1.01
0.94
0.92
0.88
0.65
1990
1995
0.59
0.59
2001
2002
0.66
0.59
0.59
2003 2004* 2005*
Average daily consumption by fridge (without freezer)
(kWh/24h)
1.05
0.87
0.90
0.68
0.60
0.55
0.55
0.55
0.54
0.54
2001
2002
0.52
0.46
0.42
0.42
1990
1995
Capacity in litres:
<150
2003 2004* 2005*
150-300
>300
* Includes Hotpoint products
57
Production
2005 saw two major events on the production front: a new joint venture in China and
the opening of a new logistics facility in Russia.
In China, Indesit Company entered an agreement with WLS (Wuxi Little Swan Company), the country’s biggest washing machine manufacturer, to form a joint venture in
which Indesit Company is to have a 70% stake.
In Lipetzk, the Group opened its first logistics pole in Russia, which is also the biggest of
its kind in the European white goods industry. When it reaches capacity, it will significantly increase the Group’s distribution capability and ensure a full range of products
for the Russian market (thanks also to Customs facilities inside the centre).
In 2005 too, all the Group’s manufacturing processes (whenever they entered service)
continued to show appreciable reductions in most of the environmental impact indicators monitored.
Energy
Electrical and thermal energy consumption was down on 2004 in both absolute terms
(from 229,296 to 222,268 MWh and from 45,969 to 44,454 MWh, respectively) and in
relation to the number of appliances produced. Mwh per piece produced has been dropping continually since 2002. From 16.75 kWh electrical and 8.48 kWh thermal in 2004,
consumption per piece in 2005 touched 16.50 and 3.30 kWh respectively.
Reductions in consumption averaging 11.4% were also recorded for methane, diesel oil
and LPG.
Energy consumption by appliance manufactured
Energy consumption by appliance manufactured
(kWh)
18.5
8.48
17.98
18
6.48
17
1.8
7
1.6
5
3.32
3.30
16.75
16.57
16.50
16
15.5
2002
2003
Electric energy
58
2
8
6
17.5
16.5
9
2004
2005
Thermic energy
4
3
2
0.06
1.87
1.74
1.64
1.4
1.57
0.05
1.2
0.04
0.04
1
0.04
0.8
0.6
0.2
0
0
0.03
0.02
0.01
0.4
1
0.05
0.01
0.20
0.18
0.16
2002
2003
2004
Methan (m 3)
Oil (litres)
0.15
2005
LPG (litres)
0
Water
In 2005, water consumption dropped in both absolute terms and per appliance produced. The cubic metre value dropped by 11.1% on 2004, to 2,087,974 m3, while the per
piece value moved from 0.17 to 0.16 m3.
As a result, effluent waste treated by purification systems or sent straight to the sewage
network fell by 8.7%, from 2,213,644 to 2,020,620 m3, or 0.16 to 0.15 m3 per appliance
produced.
Differenciated waste & recycling
Waste production fell by an overall 2.6%, from 74,334 to 72,375 tonnes, or 5.37 kg per
appliance produced.
There are three categories of waste: waste sent to tips, waste for recycling and waste as a
source of electrical energy and heat. Waste sent to tips was down 5.1% on 2004, reflecting the Group’s priority commitment to reducing the environmental impact of this sort
of waste. Recycled waste dropped 3.5% (11,720 tonnes in 2005), while waste-to-energy
dropped 2.9%, from 2,359 to 2,290 tonnes.
The overall quantity of packaging used was 47,148 tonnes, down 2.6% on the 48,423
tonnes recorded in 2004, with a per appliance weight of 3.6 kg.
Waste produced by appliance manufactured
(kg)
Water consumption and effluents by appliance
manufactured
0.25
0.2
0.21
0.15
1.2
6
0.23
5.27
0.18
0.17
5
0.89
4.86
0.17
0.16
1.00
0.16
4
0.15
3
0.1
4.31
0.87
0.87
4.25
0.4
0.08
0.17
1
0.17
2002
2003
Water consumption (m 3)
2004
2005
Effluents produced (m 3)
0.2
0
0
0
0.8
0.6
0.48
2
0.05
1
2002
2003
Recycled
To landfill
2004
2005
Waste to energy
59
Environmental reporting data
INPUT
2002
2003
2004
2005
228,157
240,967
243,480
237,065
25,649
28,655
34,430
33,522
132,306
140,461
153,731
149,681
21,337
18,340
18,117
17,639
6,759
7,043
6,930
6,747
Materials (tonnes)
Ferrous metals
Non-ferrous metals
Plastics
Paper and board
Rubber
Glass
12,650
31,703
32,136
31,289
Wood
8,851
10,421
9,905
9,644
88,001
84,064
80,453
78,333
2,291
14,030
17,665
17,199
526,002
575,684
596,848
581,119
5,450
4,637
3,890
3,787
Additives
16,452
17,734
16,320
15,890
Enamels
2,095
1,115
1,016
989
145
8,885
7,226
7,035
Gases
2,702
2,242
2,320
2,258
Other materials
5,416
7,473
6,763
6,584
32,260
42,086
37,535
36,543
201,349
232,893
229,296
222,268
Cement
Other materials
Total
Auxiliary materials (tonnes)
Paints
Lubrificant oils
Total
Energy
Electrical energy (MWh)
Thermal energy (MWh)
Natural gas (m3)
Oil (litres)
LPG (litres)
101,903
83,914
45,969
44,454
20,961,458
24,243,881
22,722,913
21,149,156
2,414,583
2,273,340
2,213,644
2,020,620
159,348
677,562
578,066
471,478
2,373,663
2,071,759
2,054,716
2,000,587
Water (m3)
From wells or surface water
Public supply
Total
430,491
308,753
293,173
285,449
2,804,154
2,380,512
2,347,889
2,087,974
Surface areas (m2)
Under cover
771,859
783,499
783,499
762,858
Others areas
1,757,032
1,834,665
1,834,665
1,786,333
2,528,891
2,618,164
2,618,164
2,549,191
Total
60
2002
2003
2004
2005
12,017,672
12,955,107
13,835,273
13,470,800
43,264
46,638
48,423
47,148
Recycled
63,286
63,000
59,629
57,521
Landfill
10,474
12,952
12,346
11,720
OUTPUT
Appliances manufactured (total no. of pieces)
Packaging (total - tonnes)
Waste (tonnes)
Waste to energy
Total
906
6,193
2,359
2,290
74,666
82,145
74,334
72,375
2,152,124
1,691,493
1,702,428
1,657,579
Effluents (m3)
Effluents directly discharged
Effluents indirectly discharged
Total
424,058
563,991
511,216
497,748
2,576,181
2,255,483
2,213,644
2,020,620
61
Glossary
62
Code of conduct
Programme document stipulating undertakings between an enterprise and
trade unions guaranteeing proper conduct of business in accordance with
the principles of social responsibility.
System of enterprise governance comprising a board of directors, a statutory
audit committee, management and control functions.
Code of conduct
Programme document stipulating undertakings between an enterprise and
trade unions guaranteeing proper conduct of business in accordance with
the principles of social responsibility.
System of enterprise governance comprising a board of directors, a statutory
audit committee, management and control functions.
Customer satisfaction
Customers’ perception and expectations regarding a service or product.
Environmental impact
Any fact that may cause a modification to the environment, whether negative or positive, total or partial, arising from the activities, products or services
of an organization.
Environmental policy
Declaration by an organization of its intentions and principles in relation to
its global environmental performance providing a framework for environmental activities and definition of relative objectives and targets.
Quality
Sum of properties and characteristics giving a product, production process
or service the capacity to satisfy explicit or implicit needs.
Relational capital
Sum of relationships established with the market, the stakeholders and actual and potential customers (customer satisfaction, customer loyalty, brand
awareness, corporate identity, etc.).
Social responsibility
Sum of an enterprise’s strategies for creating wealth whilst respecting the
environment and the legitimate interests and needs of stakeholders.
Stakeholders
All identifiable individuals or groups who may influence the success of an
enterprise or who have an interest at stake in the business decisions of that
enterprise, viz. shareholders, clients, suppliers and public institutions in the
first place but also competitors, local communities, pressure groups and
mass media.
Strategic processes
Definition of company guidelines in matters relating to products, corporate
image, the market and resources.
Support processes
Processes that concur in the making of products and services and focus in
particular on measuring performance and assessing results.
Sustainable development
Development that satisfies the needs of present generations without compromising the capacity of future generations to satisfy their needs.
Value added
Difference between the value of goods and services produced by an enterprise and the value of goods and services acquired externally; it represents the
wealth created by business for the benefit of the surrounding community.
63
Contacts
registered office
Indesit Company S.p.A.
Viale Aristide Merloni, 47
60044 Fabriano (AN)
Italy
Tel. +39 0732 6611
statutory data
Share capital euro 102,497,369.40
Registered with Ancona Court
companies register
Tax Code/Vat Reg:
No. 00693740425
communication and corporate identity
Tel. +39 0732 662356
Fax +39 0732 662380
investor relations
Tel. +39 0732 6611
Tel. +39 02 300 83 111
www.indesitcompany.com
Indesit Company
Communications and Corporate Identity
July 2006
consultancy and coordination
Ergon Comunicazione
graphics
Alessandra Stocco
photos
Photographic archive Indesit Company
Tamao Funahashi
Bob Krieger
Enzo Signorelli
Gail Trail
Min Zaw Mra
printing
Biemmegraf (Italy)

sustainability report 2005

Transcription

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