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Interpump : Consolidated non-financial statements for the year 2019 » Download (4,632 Kb) | #riskmanagement | #security | #ceo | #businesssecurity | #








04/13/2020 | 06:23am EDT

Consolidated Non-Financial Statement

at 31 December 2019

(pursuant to Italian Decree 254/2016)

Registered office:

Via E. Fermi 25 – Sant’Ilario d’Enza – RE

Share Capital:

56,617,232.88 fully paid

Reggio Emilia Companies Register

VAT No. IT01682900350

2019 │ Consolidated non-financial statement

Interpump Group S.p.A.

Contents

Letter to Stakeholders …………………………………………………………………………………………………………………..

2

Key economic, social and environmental indicators ……………………………………………………………………

3

1)

The Interpump Group…………………………………………………………………………………………………………..

4

1.1

Structure of the Interpump Group …………………………………………………………………………………

7

1.2

Interpump Group value chain ……………………………………………………………………………………….

8

2)

Note on methodology………………………………………………………………………………………………………….

11

2.1

Scope and standard of reporting…………………………………………………………………………………..

11

2.2

Methods of calculation …………………………………………………………………………………………………

11

2.3

Corporate Governance ………………………………………………………………………………………………….

13

3)

Quali-quantitative description of risks and policies for their management………………………

15

3.1

Stakeholder engagement and materiality matrix …………………………………………………………

16

3.2

Materiality analysis………………………………………………………………………………………………………

17

3.3

Risks……………………………………………………………………………………………………………………………..

20

3.4

Risk management …………………………………………………………………………………………………………

20

3.5

Performance indicators…………………………………………………………………………………………………

22

4)

Environmental Area ……………………………………………………………………………………………………………

23

5)

Socio-Economic Area…………………………………………………………………………………………………………..

32

6)

Personnel-related area…………………………………………………………………………………………………………

35

7)

Area related to respect for human rights …………………………………………………………………………….

53

8)

Area concerning anti-corruption activities (active and passive)…………………………………………

54

9)

GRI Content Index………………………………………………………………………………………………………………

56

Independent auditors’ report …………………………………………………………………………………………………….

62

2019 │ Consolidated non-financial statement

Interpump Group S.p.A.

Letter to Stakeholders

This third edition of the non-financial statement confirms our deep commitment to building respectful and transparent relations with all stakeholders. A commitment that is by no means new, having always been a hallmark of the Interpump Group.

The majority of our production plants are located in Europe, which is the area of the world with the most advanced laws and highest standards with regard to environmental protection. The number of Group companies with environmental certifications is set to increase.

Considering Water Jetting division, our historical core business, the installation of high pressure plunger pumps to replace alternate technologies generally results in improved environmental and energy-related performance. This is confirmed by a number of examples: energy efficiency is inherently better than that achieved by the more common pumping technologies, resulting in lower CO2 emissions; in cleaning applications, water pressure reduces or eliminates the need for detergents and solvents; in submarine hydraulic circuits, the use of water instead of oil eliminates the environmental risk in the event of leaks; a plunger pump is needed in order to convert large engines (as in ships or power stations) to more environmentally-friendly fuels; with regard to paint stripping (e.g. in shipyards), our water-blasting systems replace sand blasting, which is extremely damaging to the environment. The list could go on and on.

In the Hydraulic division, an increasingly significant part of our production of valves and directional controls is dedicated to innovative, energy saving hydraulic systems; a major recent acquisition is specialized in the mechanical assembly of hoses, which makes welding unnecessary, avoiding the dispersal of chemical substances into the environment.

Turning to the social field a distinguishing characteristic of Interpump, which continues to grow strongly via acquisitions, is the preservation of the identity and history of the businesses purchased: not only in terms of brand, but also with regard to location of production, supply chain, management continuity, size of the workforce and, in general, all those factors that tie a business to its local economy. Not least among the multiple virtuous consequences of this approach, we pay taxes in those countries where wealth is produced.

Following our admission to the STAR segment of the Italian stock exchange, corporate governance has followed the most rigorous guidelines including, among others, the publishing of quarterly reports and adoption of the code of corporate governance. The majority of the members of the Board of Directors are independent.

In addition to strict compliance with all local laws and regulations, a rule that all subsidiaries have always followed, we are now introducing organizational models and codes of conduct with new minimum standards that apply throughout the Group. They must be implemented, even when local regulations are silent or more tolerant: this Global Compliance Program will gradually cover all aspects of sustainability. The section against corruption is already in force and the documents addressing the Environment and Human Rights are currently being implemented.

I have every reason to believe that the growth and development of Interpump Group will continue in accordance with these guidelines, dedicating a constant, and appropriate attention to sustainability-related topics.

The Chairman of Interpump Group S.p.A.

Fulvio Montipò

2019 │ Consolidated non-financial statement

Interpump Group S.p.A.

Key economic, social and environmental indicators

*The number of entities, net revenues and the number of employees indicated above include the following statistics for the Reggiana Riduttori Group: 10 entities; net revenues of Euro 20.4 million and 176 employees. That said, the Reggiana Riduttori Group is not included in this NFS, since the acquisition took place in October 2019.

2019 │ Consolidated non-financial statement

Interpump Group S.p.A.

1) The Interpump Group

GRI 102-1; GRI 102-2; GRI 102-3; GRI 102-4; GRI 102-5; GRI 102-6; GRI 102-7; GRI 102-16

The Interpump Group was founded by Fulvio Montipò in 1977 at S. Ilario d’Enza (RE), Italy, where its parent company Interpump Group S.p.A. is still headquartered.

Over the years, production has expanded from the original niche of high and very high-pressure plunger pumps, in which the Group enjoys world leadership, to include flow control components for the food processing/cosmetics/pharmaceuticals industries and a vast range of hydraulic systems and components, as well as flexible rubber hoses and rigid metallic pipes.

The strategy of the Interpump Group is to extend the range of products and the volume of sales even further, also through targeted acquisitions.

With more than 7,000 employees and locations in over 30 countries in Europe, North America, South America, Asia and the Pacific Basin, the Group generated net revenues of Euro 1,369 million in 2019 (including Euro

20.4 million contributed by the Reggiana Riduttori Group, which was acquired in October 2019 and is not included within the scope of this Non-Financial Statement for 2019).

The mission of the Interpump Group is to pursue excellence in its operations through the application of innovation and quality. Innovation is a permanent goal of Interpump collaborators and is the result of constant, scientific, and detailed research carried out into materials, techniques and products with the aid of the most sophisticated and advanced equipment. Quality permeates all activities of the Interpump Group. Quality is founded on the meticulous, methodical and constant control and verification of each step in the production process, from the purchase of raw materials to the finished product. The quality assured by the Interpump Group stems from a widespread shared culture in all Group companies. Products are designed to be efficient, easy and intelligent to use, warranted, capable of satisfying market needs and, where possible, energy efficient, safeguarding both users and the environment.

The entire Group draws inspiration from the principles of impartiality, honesty, propriety, confidentiality, fairness, cohesion, collaboration, teamwork, professional ethics and respect for positive diversity, derived from different cultural and work experiences.

Interpump Group promotes the acquisition, sedimentation, organization and dissemination of know-how. The Code of Ethics adopted by the Group expresses the ethical responsibilities and commitments accepted by the personnel of Interpump Group companies when carrying out their business operations and activities, whether they be directors, employees or those who, even on a de facto basis, manage and control the Company or act in its name and/or on its behalf (hereinafter, also “Collaborators”). Signature of the Code of Ethics or an extract from it or, in any case, compliance with its instructions and principles by the consultants, vendors and all other third parties, including customers, that work with the Company (hereinafter, also “Third Parties”) is an essential condition for the completion of contracts of any kind between them and Interpump Group companies; the clauses signed or, in any case, approved by tacit consent or otherwise, are an integral part of such contracts.

Via the Code of Ethics, the Interpump Group also strives to disseminate and consolidate a culture of safety and respect for the environment, without deviating in any way from compliance with local regulations, while also promoting responsible conduct by all Collaborators. The Company also seeks to protect, especially via preventive actions, the health and safety of workers and the interests of other stakeholders.

On the subject of human rights, the Code of Ethics formalized and adopted by all Group collaborators is worded to recognize and respect personal dignity, privacy and the personal rights of each individual. Under this Code, the conduct of collaborators in the performance of their functions must be founded on transparency and moral integrity, having regard for the different social, economic, political and cultural contexts in which they work. The Group guarantees and promotes diversity and respect for gender equality: discrimination of any kind is not tolerated. All Group personnel are hired on a proper employment contract and the working relationship is maintained in full compliance with the national collective employment contract for the sector concerned, tax, social security and insurance regulations, and the instructions governing health, safety and immigration. Unofficial work is not tolerated in any form and respect for human rights is guaranteed, especially via a total ban on child labor and the employment of foreign citizens without proper residence papers. In addition, all personnel must specifically respect individuals, their dignity and their values at all times, avoiding any discrimination based on gender, racial or ethnic origin, nationality, age, political opinions, religious beliefs, state of health, sexual orientation or economic-social status.

See the “Code of Ethics” published on the website www.interpumpgroup.it for further details.

2019 │ Consolidated non-financial statement

Interpump Group S.p.A.

The Board of Directors of Interpump Group S.p.A. is responsible for the strategic leadership of Corporate Social Responsibility matters, while the Committee of Operations Management is responsible for the operational implementation of individual initiatives.

Focus on the Water Jetting and Hydraulic sectors

GRI 102-2

The Water Jetting sector includes companies active in Interpump’s traditional core business: the production and sale of plunger pumps rated from 1 to 2000 HP (from 0.7 to 1500 kW), and the related accessory components. The smaller models are primarily used in pressure washers; as the power rating increases, and so does the available pressure, the range of applications is extended to include car washes, atomization, road cleaning and jet rodding of sewers, seawater desalination, descaling of steel; even higher pressures allow the use of the fluid (water or another medium) to bore holes, make cuts, remove paint, deburr metal components and even for demolition works. Lastly, plunger pumps are suitable for use in all industrial processes (chemicals, food processing, cosmetics, manufacturing) that require very high pressures to homogenize or separate foods or compounds, to make chemical reactions possible, to sterilize and for countless other processes. The higher efficiency of plunger technology compared to other types of pump leads to better performance and savings in energy usage; moreover, in many of the applications mentioned water technology brings benefits related to hygiene, the environment, or processing time with respect to the conventionally employed systems.

The following principal brands are used by the Interpump Group for the above applications:

Since 2017 the Water Jetting sector also includes companies engaged in the production of special pumps, mixers, agitators, cleaning systems, valves and tanks for the food, cosmetics and pharmaceutical industries: these products offer physiological commercial synergies and significant technological affinities with the historic core business of plunger pumps. The principal brands used for these applications are:

The Hydraulic sector, inaugurated in 1997, includes companies active in the production and sale of a continually expanding range of hydraulic components: power take-offs (mechanical device connected to the engine or gearbox of an industrial vehicle, to which a pump is coupled to power the hydraulic circuit), gear pumps, cylinders, hydraulic motors, oil tanks, directional controls (the central component that assures constantly correct distribution of oil among all the segments of a complex hydraulic system) and related electronic or mechanical control systems, hydraulic lines (flexible rubber hoses, flexible metal pipes, and rigid pipes), flanges and fittings.

Hydraulic technology is used in almost all mechanized aspects of human activity: in equipped industrial vehicles (dumpers, truck cranes, waste compactors…), in agricultural vehicles, earthmoving machines, forklift trucks and telehandlers with work platforms, as well as in fixed applications including cranes, elevators, in the mining sector, marine sector, industrial automation, and even for funfair rides. Pipes and fittings have an even broader range of application (including a large number of applications in the Water Jetting sector), and some companies in the Group offer complete services of design, construction and maintenance of simple or extremely complex piping systems.

The principal brands belonging to the Hydraulic Sector are presented by product category below:

2019 │ Consolidated non-financial statement

Interpump Group S.p.A.

POWER TAKE-

OFFS

CYLINDERS

VALVES

HOSES AND

FITTINGS

Manufacturing and commercial operations are supplemented and supported by research and development activities. In addition to strategic guidance provided by the parent company, R&D activities are performed by the group’s production companies for specific products (e.g. Interpump Group S.p.A. and Hammelmann GmbH for the Water Jetting Sector; Walvoil S.p.A., Interpump Hydraulics S.p.A. and IMM Hydraulics S.p.A. for the Hydraulic Sector) with the aim of continually improving the quality and performance of the products, creating new products and identifying different applications for existing products in order to penetrate new sectors. Over the next few years, Group strategy is to continue the heavy investment in research and development, in order to give even further impetus to organic growth.

2019 │ Consolidated non-financial statement

Interpump Group S.p.A.

1.1 Structure of the Interpump Group

GRI 102-4; GRI 102-5; GRI 102-6; GRI 102-7; GRI 102-45

At 31 December 2019 the Interpump Group comprises an organization headed by Interpump Group S.p.A., a company incorporated in Italy and listed in the STAR segment of the Milan stock exchange, that holds direct and indirect controlling interests in 103 subsidiaries (4 of which being wound up as part of internal rationalization work) operating in the two business sectors described above.

The Interpump Group can be concisely represented at 31/12/2019 as follows:

Excluded from this report

The Group is composed of a large number of companies, including small size concerns, that perform primarily production and/or sales activities under the strategic and operational coordination of the group parent company.

The Group has production facilities in Italy, the US, Germany, China, India, Brazil, Bulgaria, Romania, South Korea, Portugal, France and Spain, with a direct presence in more than 30 countries. The geographical areas in which the Group operates, both in terms of manufacturing and sales activities, are grouped as follows:

  • Italy;
  • Rest of Europe;
  • North America;
  • Far East and the Pacific Basin;
  • Rest of the World.

See the following chart for further details:

2019 │ Consolidated non-financial statement

Interpump Group S.p.A.

*revenues include those of the Reggiana Riduttori Group (Euro 20.4 million), which was acquired in October 2019 and is not included within the scope of this Non-Financial Statement for 2019.

1.2 Interpump Group value chain GRI 102-9

The following is a simplified representation of the value chain of the Interpump Group, useful for the mapping and description (in the following chapters of this document) of the risks, corporate management model and policies adopted on significant topics in five areas (environmental, social, personnel, respect for human rights and anti-corruption).

2019 │ Consolidated non-financial statement

Interpump Group S.p.A.

2019 │ Consolidated non-financial statement

Interpump Group S.p.A.

The main elements of the Interpump value chain are:

  • vendors, which may be small/medium-size companies or large multinationals. Among the Group’s main procurement categories, we list the following, by way of example without limitation: raw materials, components and intermediates, finished products, packaging, work processes (e.g. heat treatments, small metal parts, assembly, surface coating, etc.), utilities, machine manufacturers, services (e.g. transport, consultancy, waste management, etc.).
  • Interpump Group companies that are primarily engaged in production (essentially mechanical production and assembly of components) and/or sales activities.
  • clients, around 26% of which are distributors and dealers, while 74% are OEMs1 and end customers. Overall, the number of customers exceeds 20,000, spread over more than 130 countries. The top customer in terms of sales accounted for about 1.4% of revenues in 2019.

The Interpump Group combines a process of internal growth with an external growth path, resulting in sometimes significant changes in the product mix with, therefore, an impact on the consistency of certain indicators.

The following acquisitions took place during the years analyzed:

  • February 2017, the Inoxpa Group – active in the manufacture and commercialization of process equipment and systems for the treatment of fluids in the food processing, cosmetics and pharmaceuticals industry (contributing about 6% of consolidated revenues);
  • January 2018, the international branches of GS-Hydro – active in the design and installation of and support for piping systems used in weld-free assembles (contributing about 5% of consolidated revenues);
  • October 2019, the Reggiana Riduttori Group (contributing about 6% of consolidated revenues) – not included within the scope of this Statement.

1 Original Equipment Manufacturer

2019 │ Consolidated non-financial statement

Interpump Group S.p.A.

2) Note on methodology

GRI 102-45; GRI 102-46; GRI 102-48; GRI 102-49; GRI 102-50; GRI 102-52; GRI 102-53; GRI 102-54; GRI 102-56

This document is the Consolidated Non-Financial Statement (hereinafter, also NFS) of the Interpump Group (Interpump Group S.p.A. and those subsidiaries consolidated on a line-by-line basis, hereinafter also the Group or “IPG”), prepared pursuant to Decree 254 dated 30 December 2016 (hereinafter, also the “Decree” or “Decree 254/2016”) and, as envisaged in the Decree, is a separate document with respect to the Board of Directors’ Report. This NFS addresses the material topics envisaged in art. 3 of Decree 254/2016 with reference to the 2019 financial year (from 1 January to 31 December), to the extent necessary in order to provide an understanding of the business, its performance, its results and the social and environmental impact of the Group. The material topics for the Interpump Group and its stakeholders were determined using a process for the analysis of materiality described in the chapter on “Stakeholder engagement and materiality matrix”.

This document has been audited by a suitably authorized third-party entity. The audit was performed in compliance with the procedures described in the “Independent Auditors’ Report” included at the end of the document.

The Board of Directors of the Interpump Group approved this NFS on 16 March 2020.

2.1 Scope and standard of reporting

This annual NFS relates to 2019, consistent with the reference period for the consolidated financial statements, and includes the companies consolidated on a line-by-line basis for financial reporting purposes (see the IPG corporate structure at 31/12/2019 in section 3), except for the Reggiana Riduttori Group since the acquisition took place in October 2019. It also contains non-financial data for 2018 and 2017 for comparative purposes. To aid understanding of the foregoing comparison, where significant the notes supporting the indicators show the changes in the scope of reporting due to the entities acquired during the three-year period, as well as the impact of exchange-rate fluctuations.

This NFS has been prepared in compliance with the GRI Sustainability Reporting Standards: Core option, published in 2016 by the Global Reporting Initiative (GRI). Compared with the 2018 Statement, IPG has adopted the updated version of Disclosure GRI 403 (Occupational Health and Safety) issued by the GRI in 2018 and, accordingly, the historical data for 2017 and 2018 has been aligned with the new method of calculation.

The Statement now includes section 3.2 (Analysis of materiality) “Correlation Table with GRI Core indicators”, in order to show the coverage of the GRI indicators associated with each topic determined to be material. In addition, each chapter/section makes reference to the indicators addressed.

2.2 Methods of calculation

The main methods of calculation and assumptions made for the non-financial performance indicators reported in this statement are indicated below, in addition to those already described in the text of the NFS (e.g. examples of specific calculation formulas include indicator 401-1 concerning in/out turnover rates, 403-9 concerning rates of injury, 302-3 related to energy intensity, and 306-1 concerning water discharge).

  • Where specific environmental data was unavailable, conservative estimates were made by choosing assumptions for environmental performance that were less favorable for the Company.
  • Greenhouse gas emissions were calculated using the following formula: activity value (m3 of natural gas, kWh of electrical energy, etc.) multiplied by the respective emission factor. Also, losses of refrigerant gas (kg) were considered, multiplied by the respective Global Warming Potential (GWP).
  • The emission factors and GWP values used to calculate the GHG emissions were as follows:
  1. Emissions Scope 1: the emission factors for fuels and the GWP of refrigerant gases were taken from the “UK Government GHG Conversion Factors for Company Reporting – fuel properties”

published by the Department for Environment, Food and Rural Affairs (hereinafter, also “DEFRA”) and updated annually.

  1. Emissions Scope 2: the emissions for electricity purchased from the grid were calculated using two methods, as required by the GRI Standards:
    • the Market-based calculation used the residual mix emission factors reported in the following documents: “European residual mix” published by the Association of Issuing Bodies (AIB)

2019 │ Consolidated non-financial statement

Interpump Group S.p.A.

and “Green-e Energy Residual Mix Emissions Rates” published by the Center for Resource Solutions; for those countries whose residual mix factors were not publicly available from accredited sources at the time of preparing this document, the emission factors applied in the Location-based calculation were used instead.

    • the Location-based calculation used the emission factors reported in the “International Comparisons” document published by Terna.
  • The personnel data (e.g. employment) relates to natural persons (not standardized using FTEs2) at 31/12 in the reporting period.
  • The health and safety indicators were calculated in the manner envisaged by the GRI Standards, using
    200,000 (equivalent to the hours worked each year) as the multiplier, so that:
    o Injury rate: no. of injuries * 200,000 / hours actually worked
    o Injury rate (high-consequenceincidents): no. of high-consequence injuries * 200,000 / hours actually worked
    o Lost days rate (LDR): no. of days lost * 200,000 / theoretical hours worked
    o Occupational disease rate: no. of occupational diseases * 200,000 / hours actually worked

2 Full-time equivalents

2019 │ Consolidated non-financial statement

Interpump Group S.p.A.

2.3 Corporate Governance

GRI 102-1; GRI 102-3; GRI 102-5; GRI 102-18

The corporate governance model adopted by Interpump Group is based on the Code of Corporate Governance3 promoted by Borsa Italiana.

As indicated in the report on corporate governance and the ownership structure for 2019, which can be consulted on the Group’s institutional website in the “Governance” section, to which we invite you to refer for more details, Interpump Group S.p.A. has adopted a traditional form of administration and control:

  • company management is delegated to the Board of Directors (Board);
  • supervisory functions are addressed by the Board of Statutory Auditors;
  • the legal audit of the accounts and accounting checks are performed by the independent auditing firm appointed at the shareholders’ meeting;
  • a Supervisory Body is appointed pursuant to Decree 231/2001.

Interpump Group S.p.A. manages and coordinates its Italian subsidiaries pursuant to art. 2497 of the Italian Civil Code, although they retain their legal independence and apply the principles of proper corporate and business management.

The composition of the Board of Interpump Group S.p.A. and, specifically, the information required by art. 104, para. 1, of Decree 254/2016 concerning the gender diversity of the administrative, management and control bodies, are illustrated in the Report on corporate governance and the ownership structure for 2018, in sections 4.2. “Composition of the Board of Directors” and 14.0 “Composition and Operation of the Board of Statutory Auditors”.

With regard to gender diversity, the statutory provisions and the matters provided for by art. 147-(3) of Decree 58 dated 24 February 1998 are complied with in full. When the Board of Directors and the Board of Statutory Auditors are renewed, at the Shareholders’ Meeting called to approve the financial statements for 2019, the weighting of the least represented gender will be aligned with the regulations on gender balance in force at that time.

The Board of Directors has established the following Board Committees: the Remuneration Committee, the Control and Risks Committee, the Appointments Committee, and the Related-Party Transactions Committee. As required by the Code of Corporate Governance promoted by Borsa Italiana, at least one member of the Control and Risks Committee and, consequently, of the Board of Directors, has experience in accounting and financial matters or in the area of risk management.

The organizational structure of Interpump Group S.p.A. at 31 December 2019 is illustrated below.

  1. Published in July 2018
  2. “Amendments to Decree 58 dated 24 February 1998”

2019 │ Consolidated non-financial statement

Interpump Group S.p.A.

2019 │ Consolidated non-financial statement

Interpump Group S.p.A.

3) Quali-quantitative description of risks and policies for their management

In line with art. 3, paras. 1 and 2, of Decree 254/2016, this NFS includes both descriptive aspects (e.g. policies, risks, governance) and results in terms of performance.

The path implemented by IPG in response to the Decree takes account of the five areas indicated by the legislator:

ENVIRONMENT

ANTI-

EMPLOYEES

CORRUPTION

This non-financial statement was prepared in the following key stages:

  • mapping the stakeholders of the Group and related prioritization;
  • identification of the material non-financial topics via an analysis of materiality;
  • mapping of the main risks, generated or sustained, that derive from the business activity and from its products, services or commercial relationships, including the chain of supply;
  • identification of the policies practiced, where applicable, and the governance adopted for management of the five topics;
  • definition and implementation of a process (on Group level) of collection, aggregation and transmission of the information required by the essential performance indicators selected based on

the significant themes for IPG and envisaged by the chosen reporting standard.

Even though the analysis conducted is specific in relation to the five topics identified by the legislator, in order to make the text more accessible, it was decided to present the transverse qualitative information first, before the qualitative-quantitative information specific to each topic.

2019 │ Consolidated non-financial statement

Interpump Group S.p.A.

3.1 Stakeholder engagement and materiality matrix GRI 102-40; GRI 102-42; GRI 102-43

The Group strives to build a relationship of trust with its numerous stakeholders, developing active and constant dialog where possible. In particular, stakeholders are entities or individual influenced significantly by the activities, products and services offered by the business and/or whose actions influence the ability of the business to implement successfully its strategies and achieve its established objectives.

When updating the NFS for 2019, IPG mapped its stakeholders to identify those of greatest significance to the Group.

2019 │ Consolidated non-financial statement

Interpump Group S.p.A.

In addition, the principal channels used to communicate with these stakeholders were identified:

GRI 102-43 Methods of interaction, listening and involvement

Category of Stakeholder

Frequency of

Method

involvement

Training programs, incl. ethics

Employees and collaborators

Continuous

Communications from top management

Collective bargaining

Periodic assessment of performance and results

Institutional website

Shareholders

Continuous

Shareholders’ meeting

Press releases

Institutional website

Local Community

Continuous

Donations

Meetings for student orientation

Apprenticeships/internships

Competitors

Periodic

Institutional website

Participation in initiatives and events

Trade unions

Periodic/ad hoc

Institutional meetings

Trade associations

Continuous

Institutional meetings

Participation at conferences and information sessions

Institutional website

Periodic meetings with investors and financial analysts

Lenders and investors

Periodic

Roadshows (meetings with the financial community)

Press releases

Shareholders’ meetings

Press releases

Institutional website

Suppliers

Continuous

Constant relations with the relevant business functions

Participation in initiatives and events

Public administration and control bodies

Continuous

Institutional relations

Institutional website

Management of complaints

Clients

Continuous

Catalogs

After-sales service

Trade fairs

Institutional website

Information on request

Legislator

Continuous

Reports and financial statements

Press releases

Shareholders’ meetings

The Group also strives to participate in trade associations and other significant initiatives at local and international level. Interpump Group S.p.A. is a member of the following principal organizations:

  • Unindustria – territorial association of the Confindustria system
  • Afidamp – association of players in the professional cleansing value chain in Italy
  • Ecoped – national consortium for the management of waste
  • AUSED – Association of users of data processing systems
  • IBC – Association of consumer goods industries

3.2 Materiality analysis

GRI 102-44, GRI 102-46; GRI 102-47; GRI 102-49; GRI 103-1; GRI 103-2

In order to provide an understanding of the activities carried out, the progress made, the results achieved and the resulting impact, the Group performed a materiality analysis in 2019 that identified the economic, environmental and social topics to be included in the NFS. In particular, as envisaged in the GRI Standards, the material topics were selected with reference to their ability to influence significantly the decisions and opinions of stakeholders, as well as to their impact on the Group and its performance.

2019 │ Consolidated non-financial statement

Interpump Group S.p.A.

With the involvement of top management, an internal working group carried out the process of defining the material topics, which comprised two distinct phases:

The first involved identifying the universe of non-financialtopics that were potentially significant, by analyzing sources in the following categories:

  • sustainability trends at a global level, i.e. key non-financial aspects considered by the main stock exchanges that have published guidelines for sustainability reporting, by the sustainability rating indices (DJSI, MSCI, etc.), by international organizations (GRI, World Economic Forum, etc.) and by supranational bodies (EU, UN, etc.).
  • sector performance, i.e. non-financial aspects that have emerged as significant for the reference sector of IPG. In particular, the indications present on the Europump5 website were analyzed, as were the publications of several international organizations (RobecoSam, SASB, etc.).
  • analysis of press clippings regarding the Group and the industry concerned.
  • company priorities, with reference to the five topics of Decree 254/2016, identified from analysis of the main corporate documents (Code of Ethics, 231 Model, Risk assessment, etc.).

The analysis found 26 significant topics, which were then assessed.

The next phase involved prioritization of the topics identified in order to distinguish the most important based on the two variables considered:

  • Influence on stakeholder assessments and decisions: their importance for stakeholders was evaluated using the results obtained from the above analyses.
  • Significance of the economic, environmental and social impacts for IPG: this assessment was made by top management during an ad hoc workshop, during which participants assigned a score, in terms of significance, to each topic identified.

The results of this analysis therefore led the Group to identify the material topics, based on their impact on IPG and their significance for its stakeholders, as shown in the following matrix:

Materiality matrix

5 European Association of Pump Manufacturers

2019 │ Consolidated non-financial statement

Interpump Group S.p.A.

The correlation table between the GRI Standards and the material topics identified is presented below together with the related reporting scope.

GRI Core Indicators correlation table [102-46; 103-1]

Material topics for IPG

GRI Standard

Scope

Internal

External

Limitations

Environmental area

Energy and Climate change

GRI 302: Energy 2016 (302-1, 302-3, 305-1,

IPG Group

305-2,305-4)

Polluting emissions

GRI 305: Emissions 2016 (305-7)

IPG Group

Water consumption

GRI 303: Water 2016 (303-1)

IPG Group

Management of waste water

GRI 306: Effluents and Waste 2016 (306-1)

IPG Group

Wastes management

GRI 306: Effluents and Waste 2016 (306-2)

IPG Group

Environmental compliance

GRI 307: Environmental Compliance 2016

IPG Group

(307-1);

Socio-economic area

Economic performance

GRI 201: Economic Performance (201-1)

IPG Group

Customer health and safety

GRI 416: Customer Health and Safety 2016

IPG Group

(416-2)

Socio-economic compliance

GRI 419: Socio-Economic Compliance 2016

IPG Group

(419-1)

Personnel-related area

External

Reporting

partially

GRI 403: Occupational Health and Safety 2018

personnel

Occupational health and safety

IPG Group

extended to

(403-9)

working on

external

Group sites

boundary

Management of human capital

GRI 401: Employment 2016 (401-1)

IPG Group

Training

GRI 404: Training and Education 2016 (404-1)

IPG Group

Non-discrimination and equal

GRI 405: Diversity and Equal Opportunity

IPG Group

2016 (405-1)

opportunities

GRI 406: Non-discrimination 2016 (406-1)

IPG Group

Area related to respect for human rights

Human rights assessment

GRI 412: Human Rights Assessment 2016

IPG Group

(412-3)

Area concerning anti-corruption activities

GRI 205: Anti-corruption 2016 (205-3)

IPG Group

Fight against corruption

GRI 206: Anti-competitive Behavior 2016

IPG Group

(206-1).

GRI 415: Political Contribution (415-1)

IPG Group

Compared with prior years, the analysis of materiality carried out during 2019 resulted in adding “economic performance” as a material topic in this NFS.

2019 │ Consolidated non-financial statement

Interpump Group S.p.A.

3.3 Risks

The main risks identified for the 5 topics identified by the legislator, that may become of significance in relation to the pursuit of the Interpump Group strategy in the medium/long-term, are identified in the related headings.

Interpump Group however considers shared risks (applicable to the environmental, social, personnel, human rights and anti-corruption topics), and as such listed in this heading and not repeated in correspondence with the individual topics:

  • reputation risks that arise from the risks listed for each topic;
  • risks linked to possible issues – whether environmental, social, product quality related,

concerning anti-corruption, etc. – with the supply chain.

In this regard, note that in the context of the internal control and risk management system, a process has been implemented of Risk Assessment of business risks originating from external and internal sources based on self-assessment of the risk by the Risk Owners – identified as coinciding with the top management of the Group. The analysis starts from a catalog of risks developed specifically for the Group, based on the typical business areas and the operational and compliance problems and periodically reviewed to take account of any newly identified risk profiles. The business risks examined, i.e. all risks that may become significant in terms of the medium/long-term sustainability of the activities of the Issuer, are classified as strategic, financial, compliance or operational. This Risk Assessment process makes it possible to identify the business risks, to evaluate the degree of risk and to monitor any corrective actions adopted. In this regard, the catalog of risks to be used during 2020 has been revised to specify better those relating to the topics of a non-financial nature addressed in this report.

3.4 Risk management Policies

In addition to the “whistleblowing management policy”6, applicable to the Group, which regulates the method of execution and management of whistleblowing concerning presumed irregularities or illegalities, the Code of Ethics adopted by all Group companies (for China, taking account of the country factor), defines the principles of conduct and the guidelines concerning the 5 topics referenced by legislative decree 254/2016 (environmental, social, personnel, respect for human rights, and anti-corruption). Top management deemed it appropriate to formalize Group policies with reference to the non-financial aspects of the greatest significance for IPG, taking into account the marked diversification of the companies/production sites and their independence. For further details, see the Global Competence Program described in the next heading.

Model

Given the company structure of the Interpump Group, composed of multiple companies, also of small size, that work in different countries with diversified areas of business and taking account of the variable perimeter of the Group from one year to the next, it has not been deemed appropriate to date to define a centralized management model of the themes related to the 5 topics specified in Decree 254/2016.

Interpump Group S.p.A. has adopted an Organization, Management and Control Model pursuant to Decree 231/2001 (the “231 Model”), which details the various roles and responsibilities and enables decision-making processes to be traced, even in the areas covered by this Statement. Together with the Code of Ethics, the 231 Model provides an additional tool for promoting awareness among all employees and all those who collaborate for various reasons with the Company. This helps to ensure compliance, in the execution of their activities in pursuit of the corporate objects, with proper and transparent forms of conduct in line with the Company’s ethical-social values, thereby preventing the risk of committing the offenses contemplated in the Decree. The 231 Model was implemented after assessment, using the same methodology, of the risk that the identified offenses might be committed by those Italian subsidiaries that, given their size and organizational complexity, are at relatively greater risk with respect to the offenses considered in Decree 231/2001.

Interpump Group has decided to implement a Global Compliance Program that extends the principles and rules of conduct set down in the 231 Model to the Italian companies for which adoption of the Model is deemed unnecessary, as well as to the foreign companies. The purpose is to achieve ever greater levels of compliance with all applicable legislative measures, and ensure respect for the concepts of legality and ethical conduct in the performance of business activities. The Global Compliance Program of Interpump Group S.p.A. defines a model for the organization and management of activities in line with International Best Practices, to prevent misconduct in the context of the Decree, namely in the following areas: environment, social, personnel, human

6 Available on the corporate website in the Governance section

2019 │ Consolidated non-financial statement

Interpump Group S.p.A.

rights, and the fight against both active and passive corruption. The Global Compliance Program comprises guidelines that define the principles and rules of conduct to be followed, in order to organize and manage companies in a manner that complies with the applicable regulations and respects the concepts of legality and ethical conduct in the performance of business activities. The Global Compliance Program was approved by the Board of Directors of Interpump Group S.p.A.:

  • in 2019 with regard to the fight against active and passive corruption. Adoption and implementation by all Group companies is currently being completed;
  • in February 2020 with regard to the environmental, social and personnel topics and respect for human rights. As in the case of the other topics, these will be adopted and implemented by all Group companies during the second half of 2020.

With reference to the environmental area, a number of Group companies have adopted and implemented quality management systems certified pursuant to UNI EN ISO 9001 (see below for further details); some plants are certified pursuant to UNI ISO/TS 16949:20097.

In addition, several companies have adopted and implemented environmental management systems certified in compliance with international standard EN ISO 14001:2004 – in certain cases the system update process has been launched to comply with the new requirements of standard 14001:2015 – and safety management systems certified in compliance with international standard ISO 45001. See the specific section on environmental and personnel matters for further details.

Interpump top management recognizes, as an essential principle, respect for the laws and regulations in force in the countries of operation of the Group companies, where they are required to comply with those laws and regulations without exceptions of any kind.

GRI 103 – System Management – summary tables 20198

  1. “Special requirements for application of ISO 9001:2008 for series production and the production of spare parts in the automotive industry”
  2. The tables do not analyze companies without production/assembly/storage locations. In other words, 7 out of 81 companies were excluded.

2019 │ Consolidated non-financial statement

Interpump Group S.p.A.

3.5 Performance indicators

In conformity with the Decree, the Interpump Group has selected several GRI indicators that can aid correct and balanced understanding of the performance of the company, of its results and the impact of its activity in relation to the topic in question.

The purpose of the set of GRI indicators is to maximize the comparability and uniformity of the data presented, while also guaranteeing consistent representation of environmental and social performance in the various sectors in which the Group operates.

The associated reporting should therefore include an integrated reading of the economic-financial aspects, thereby developing a more thorough understanding of the company’s activities and their social-environmental impacts.

2019 │ Consolidated non-financial statement

Interpump Group S.p.A.

  1. Environmental Area
    Material topics

Based on the analysis of materiality (see chapter 3.2 Analysis of materiality for further details), the material topics for IPG in the environmental area are:

  • Polluting emissions;
  • Energy and Climate change;
  • Water consumption;
  • Management of waste water;
  • Waste management;
  • Environmental compliance.

Risks

The main risks identified in the environmental area, that could become significant in pursuit of the medium/long-term strategy, comprise:

  • operational risks – linked to the low control of energy consumption, the use of water resources and the management of wastewater;
  • compliance risks – omitted compliance with national or local legislative requirements concerning the environment could lead to the imposition of fines, criminal charges (e.g. for offenses covered by Decree 231/01), and possible environmental harm.

Risk management

Risk type

Risk management

Policies

Model

Environmental management systems certified in

Monitoring of energy consumption, the

compliance with international standard EN ISO

14001:2004

with

reference to certain

use of water resources and

Operational

companies/plants (in some cases the process of

management of waste water (work in

updating the system to comply with the new

progress)

requirements of standard 14001:2015 has been

launched)

Special Section

of

the Organization and

  • Code of Ethics – with special reference Management Model – concerning Italy-based

to the commitment to protect the

companies for which this is deemed appropriate

environment and the adoption of the

in view of the activities performed and the level

most suitable measures to preserve it,

of risk.

by means of ongoing orientation

Global Compliance Program (see section 3.4 for

towards the progressive reduction of

further details) – concerning all Group companies

direct and indirect impacts of its

without an Organization, Management and

activities, both on the local level

Control Model

Compliance

(quality of the soil, air and water in

Environmental management systems certified in

the area in which the company

compliance with international standard EN ISO

operates) and also with reference to

14001:2004 – with reference to certain

global challenges

(biodiversity

and

companies/plants (in some cases the process of

climate change).

updating the system to comply with the new

Environmental policies – in relation

requirements of standard 14001:2015 has been

to the companies/plants in which

launched)

environmental

systems

are

Insurance cover for accidental cases of air or

implemented.

subsoil pollution. The scope of application

covers the entire Group.

2019 │ Consolidated non-financial statement

Interpump Group S.p.A.

Performance indicators

Environmental management systems

GRI 103-2; GRI 103-3

In recent years, the Interpump Group has focused efforts on introducing environmental management systems certified pursuant to UNI EN ISO 14001:2004. At the time of preparing this Statement, about 26% of Group companies – contributing about 46% of consolidated revenues – have implemented environmental management systems pursuant to ISO 14001.

About 16% of Group companies have not only implemented environmental management systems pursuant to ISO 14001, but are also certified in accordance with that international standard at the time of preparing this Statement. Those companies account for about 40% of consolidated revenues.

Use of energy resources

GRI 302-1; GRI 302-3

In 2019 the Interpump Group consumed energy resources totaling 539,887 GJ, up by 3.0% compared to 2018. This consumption breaks down as follows: 60% electricity drawn from the grid9, 27.3% natural gas, 8.5% transport-related diesel, 3.4% gasoline, and 0.7% other. “Other” mostly includes electricity self-generated using PV plants and, to a minimal extent, fuel oil and purchased hot water.

By comparison, consolidated revenues were 5.4% higher overall with respect to the prior year (+7.0% including the Reggiana Riduttori Group, which has been excluded from the scope of this document).

9 The percentage of electricity generated from renewable sources and consumed by the Group depends on the various national electricity generation mixes. Own consumption of renewable electricity produced by PV plants must also be considered for Italy, as more fully illustrated on the next page.

2019 │ Consolidated non-financial statement

Interpump Group S.p.A.

In particular, the consumption of fuel from non-renewable sources (natural gas, gasoline and diesel) was 0.6% lower in 2019 than in 2018 (213,001 vs 211,787 GJ).

GRI 302-1

Energy consumption

UoM

2017

2018

2019

Electricity from the grid

MWh

81,209

85,564

90,049

Natural gas

m3

3,655,122

4,111,663

4,118,298

Gasoline

Liters

316,606

551,659

570,252

Diesel

Liters

921,434

1,299,726

1,280,389

Other

GJ

2,202

3,367

3,922

Total in GJ

GJ

472,885

524,397

539,887

Even though energy consumption takes place in sites with highly diversified energy profiles, in order to describe the main types of consumption and give context to the numbers, it is confirmed that most electricity is consumed by production activities, with a residual portion attributable to office equipment and, in some cases, to heating as well. On the other hand, the predominant element of natural gas consumption is attributable to space heating requirements, with industrial applications using it to a lesser extent. The consumption of diesel and gasoline mainly relates to the use of company vehicles.

The increase in energy consumption has been accompanied by an increase in the proportion of renewable energy generated internally through the installation of photovoltaic panels which, overall, have resulted in the production of 1,553 MWh, of which 57.8% was consumed internally, with the remainder transferred to the grid.

At Group level, energy intensity10 was 0.40 GJ/ k€ in 2019, down by 0.01 GJ/ k€ with respect to the prior year for the reasons illustrated above.

10 Calculated as follows: total energy consumed [GJ] / sales [k€], where total energy consumed is that defined in GRI disclosure no. 302-1

2019 │ Consolidated non-financial statement

Interpump Group S.p.A.

GRI 302-3 – Energy intensity

Energy intensity

UoM

2017

2018

2019

Energy consumption

GJ

472,885

524,397

539,887

Consolidated revenues

k€

1,086,547

1,279,167

1,348,17711

Energy intensity

GJ/k€

0.44

0.41

0.40

The reduction in energy intensity in 2019, with respect to 2018, reflects improvement in the consumption profile of the pre-existing companies and, only in part, to the lower consumption of energy per Euro of sales by the companies acquired during 2019.

Use of water resources

GRI 303-1; GRI 306-1

Around 327 thousand cubic meters of water were drawn in 2019, down by 11% compared to 2018, and used primarily for civil, productive and firefighting purposes. The reduction in consumption results from a review of process to lower their water requirement and increased awareness about the use of water for industrial purposes. With regard to the change in the reporting scope, the new companies acquired during the year did not affect significantly the consolidated indicators. The water needs of the Group are drawn in almost identical measure from the municipal water supply and from wells (company property or used under license).

GRI 303-1 – Water drawn

Source

UoM

2017

2018

2019

Public supply (mains)

m3

160,625

185,901

191,159

Wells owned/licensed

m3

172,019

173,503

136,264

Other sources

m3

8,478

Surface tanks

m3

176

Total

m3

332,820

367,882

327,423

11 This amount does not include the revenues of the Reggiana Riduttori Group, which is excluded from the scope of the 2019 NFS.

2019 │ Consolidated non-financial statement

Interpump Group S.p.A.

The ratio of water drawn to sales decreased in 2019 compared with the prior year: from 0.29 m3/k€ to 0.24 m3/k€, with a reduction of 0.05 m3/k€.

Water consumption intensity

UoM

2017

2018

2019

Water drawn

m3

332,820

367,882

327,423

Consolidated revenues

k€

1,086,547

1,279,167

1,348,177

Water consumption intensity

m3/k€

0.31

0.29

0.24

Process water12 discharged in 2019, totaling approximately 186 thousand cubic meters (-22.7% versus the prior year), went almost entirely into the drainage system, in compliance with the authorizations granted. The reduction reflects the lower consumption of water drawn, as well as a better distinction between civil and industrial discharges.

Waste water – GRI 306-1

Destination

UoM

2017

2018

2019

Sewage

m3

216,934

235,433

185,329

Surface water bodies

m3

Other

m3

2,402

5,261

697

Total

m3

219,336

240,694

186,026

12 In line with the master data of GRI Standards disclosure 306-1, domestic sewage and rainwater discharges were disregarded. As explained in section 4, the quality of water discharged must comply with the locally applicable regulations.

2019 │ Consolidated non-financial statement

Interpump Group S.p.A.

Atmospheric emissions

GRI 305-1; GRI 305-2; GRI 305-4; GRI 305-7

The Group’s atmospheric emissions of greenhouses gases (hereinafter also GHG) were calculated in terms of the following emission types:

  • Scope 1 – direct emissions
  • Scope 2 – energy-related indirect emissions

Scope 1 emissions in the Group correspond to GHG emissions deriving from:

  1. the use of fuel (gasoline, diesel, fuel oil and natural gas);
  1. leakages of refrigerant gas from air conditioning/refrigeration systems.

In 2019 emissions deriving from fuels totaled 12,987 tonnes of CO2eq, while the contribution from the refilling of air conditioning and refrigeration plants was 303 tonnes of CO2eq. The total Scope 1 emissions of the Interpump Group were therefore 13,291 tonnes CO2eq, down by 2.0% versus the prior year.

GRI 305-1

GHG emissions – Direct

UoM

2017

2018

2019

Fuels

ton CO2eq

10,866

13,218

12,987

Refilling refrigerant gases

ton CO2eq

321

339

303

Total emissions – Scope 1

ton CO2eq

11,188

13,557

13,291

The reduction in emissions deriving from fuel with respect to 2018 (by 1.7%) was due to the lower consumption of natural gas for heating and certain production activities, as well as to the more efficient use of the vehicle fleet.

Scope 2 emissions mainly related to purchased electricity and only marginally to purchased thermal energy. Considering that the energy required for Group activities is supplied by external entities, with the exception of that produced internally by PV plants, Scope 2 emissions (location-based method) totaled 35,981 tonnes of CO2eq in 2019 (up by 2.2% compared to the prior year).

GRI 305-2

GHG emissions – Indirect – Location

UoM

2017

2018

2019

Indirect from electricity

ton CO2eq

34,146

35,188

35,979

Indirect from thermal energy

ton CO2eq

2

2

2

Total emissions – Scope 2

ton CO2eq

34,148

35,190

35,981

The calculation of emissions using the market-based method is presented below.

GRI 305-2

GHG emissions – Indirect – Market

UoM

2017

2018

2019

Indirect from electricity

ton CO2eq

40,601

42,905

45,089

Indirect from thermal energy

ton CO2eq

2

2

2

Total emissions – Scope 2

ton CO2eq

40,603

42,907

45,091

The increase in Scope 2 emissions in 2019 was mainly due to higher energy consumption by the companies already consolidated, and much less to the change in the reporting scope.

The intensity of GHG emissions in 2019 was lower than in 2018: 0.037 tCO2/k€ compared with 0.038 tCO2/k€, due to the improved energy efficiency coefficients described above

2019 │ Consolidated non-financial statement

Interpump Group S.p.A.

GRI 305-4

Intensity of GHG emissions

UoM

2017

2018

2019

Total GHG emissions

ton CO2eq

45,336

48,747

49,272

Consolidated revenues

k€

1,086,547

1,279,167

1,348,177

Intensity of GHG emissions

tCO2/k€

0.042

0.038

0.037

Another impact generated by the Group concerns direct pollutant emissions into the atmosphere. As expected given the nature of the activities carried out at Interpump plants, the most significant element comprises nitrous oxides and particulate, which have increased largely due to the internalization of certain industrial processes and opening of new plants.

GRI 305-7

Atmospheric emissions

UoM

2019

Particulate

Tons

4.5

PM10

Tons

NOX

Tons

16.8

CO

Tons

1.2

Dioxins and Furane

qlTEQ

IPA

Tons

0.0

COT

Tons

1.8

PB

Tons

ZN

Tons

0.0

HG

Tons

SOX

Tons

1.0

Pcb

Tons

HCl

Tons

0.1

HF

Tons

0.0

NI

Tons

0.0

Oil mist

Tons

0.6

2019 │ Consolidated non-financial statement

Interpump Group S.p.A.

Waste produced

GRI 306-2

In 2019 the Group generated a total of around 25 thousand tonnes of waste, of which 87% non-hazardous and 13% hazardous. The slight reduction in total waste produced compared with the prior year (25,678 tons in 2018 vs 24,944 in 2019), down 2.9%, is consistent with the improvements in efficiency and the revision of certain productive activities.

The following analysis of the waste produced indicates the quantity recycled and disposed of hazardous and non-hazardous (in tonnes).

In quantitative terms, the principal waste produced by the Group consisted of ferrous metal filings and shavings totaling 13 thousand tonnes in 2019 (53.3% of the 24,944 tonnes total waste generated), which were mostly sent for recycling.

The final destination of non-hazardous waste in 2019 was as follows:

  • about 82.5% (17,919 tons) recycled,
  • about 17.5% (3,791 tons) disposed.

With regard to the 3,234 tonnes of hazardous waste produced (8.8% more than in the prior year):

  • about 13.6% (440 tons of hazardous waste) was sent for recycling;
  • about 86.4% (2,794 tons of hazardous waste) was sent for disposal. Some of the main categories of non-hazardous wastes are given below:

GRI 306-2

Non-hazardous waste

UoM

2017

2018

2019

12.01.01 – Ferrous metal filings and shavings

ton

11,596

13,883

13,299

12.01.02 – Ferrous metal powders and particulates

ton

749

990

940

12.01.99 – Unspecified waste

ton

1,090

703

759

15.01.01 – Paper and board packaging

ton

679

782

563

17.04.05 – Iron and steel

ton

1,651

1,467

1,243

20.03.01 – Non-differentiated urban waste

ton

1,499

1,812

1,958

Other

ton

2,311

3,069

2,948

Total non-hazardous waste

ton

19,576

22,706

21,710

2019 │ Consolidated non-financial statement

Interpump Group S.p.A.

With regard to hazardous waste, emulsions and solutions for machinery are the substances produced in the greatest quantity, (about 7.4% of the total waste generated in 2019).

GRI 306-2

Hazardous waste

UoM

2017

2018

2019

12.01.09* – Emulsions and solutions for machinery

ton

1,550

1,705

1,842

12.03.01* – Water-based washing solutions

ton

412

455

439

15.02.02* – Absorbents, filtering materials

ton

145

166

209

08.01.19* – Water-based suspensions containing paints

ton

64

12

18

Other

ton

496

634

725

Total

ton

2,668

2,972

3,234

Overall, in 2019 approximately 18,359 tonnes of wastes were recovered compared to approximately 6,585 tonnes transferred for disposal.

Environmental compliance

GRI 307-1

Finally, note that based on best practices connected to the environmental management systems implemented in some Group companies and given the growing attention paid to sustainability themes, some IPG suppliers were subjected to an environmental assessment during the three-year reporting period; there was an increase in this practice in the period concerned.

During the three-year reference period, the number and value of fines levied for non-compliance with environmental laws and/or regulations were insignificant, amounting to 0 in 2019.

2019 │ Consolidated non-financial statement

Interpump Group S.p.A.

  1. Socio-EconomicArea
    Material topics

Based on the analysis of materiality (see chapter 3.2 Analysis of materiality for further details), the material topics for IPG in the socio-economic area are:

  • Economic performance
  • Customer health and safety
  • Socio-economiccompliance

Risks

The main risks identified in the company area, such that can become of significance in relation to the pursuit of the company strategy in the medium/long-term, are related to:

  • operational risks linked to product labeling (i.e. the information that accompanies the product, describing its characteristics), and market policy (e.g. unfair and unethical conduct in relation to competitors).
  • compliance risks and legal risks, due to non-compliance with regulations and further to damage to property or personal injury caused by the product, linked to safety during use of products sold by Group companies.

The economic and financial risks are described in the Report on operations of Interpump Group S.p.A.

Risk management

Risk type

Policies

Risk management

Model

Code of Ethics – with special reference, in

Quality management systems certified in

addition to the matters stated above, to the

compliance with the provisions of

undertaking to guarantee adequate quality

international standard ISO 9001 – with

standards of the services/products on offer

Operational

regard to some companies/facilities

based on predefined levels

and periodic

(Monitoring of nonconformities reported by

monitoring of the perceived quality.

customers)

Technical training programs

Code of Ethics – with reference to the full and

Special Section of the Organization and

scrupulous

compliance

with

the antitrust

Management Model

– concerning

Italy-

regulations

and

the

rules

of

market

based companies

for

which

the

regulatory authorities.

opportunity has been assessed in

Relations with competitors are characterized

consideration of the activity performed and

by loyalty

and

fairness and the

Group

the level of risk.

disapproves of any behavior that could

Compliance

Global Compliance Program (see section

constitute an impediment or disturbance.

3.4 for further details) concerning all

The Group

undertakes

to ensure that its

Group

companies

without

an

activities are conducted in such a way as to

Organization, Management

and

Control

avoid violating,

under

any circumstances,

Model.

international laws of embargo and control of

Insurance

cover

product

liability

exports in force in the countries in which it

insurance.

operates.

2019 │ Consolidated non-financial statement

Interpump Group S.p.A.

Performance indicators

Economic performance

GRI 102-5; GRI 102-7

The number of ordinary shares of Interpump Group S.p.A. outstanding at 31 December 2019 totals 108,879,294. The significant holdings of share capital are listed below:

Shareholders

Nationality

% of ordinary share

capital

GRUPPO IPG HOLDING SRL**

Italian

23.335

FMR LLC (Fidelity Management and Research)*

USA

6.197

FIN TEL SRL*

Italian

4.133

TREASURY SHARES (Interpump Group S.p.A.)**

Italian

2.043

Reggiana Finanziaria srl*

Italian

3.490

  • Source: Consob updated at 25/02/2020
  • Source: Draft financial statements of the Company at 31/12/2019

The shares of Interpump Group are listed on the Milan stock exchange and have performed well. In particular, over the past three years, the shares have consistently outperformed the STAR index, which is the segment to which Interpump Group belongs.

Analysis against the FTSE Italia STAR index (01/01/2015- 31/12/2019)

Jan 2016

Jan 2018

Source: Borsa Italiana – Interpump Shares

STAR

2019 │ Consolidated non-financial statement

Interpump Group S.p.A.

Economic value generated and distributed

GRI 103-2; GRI 103-3; GRI 201-1

The economic value generated and distributed represents the ability of business to create wealth and distribute it among its stakeholders.

The economic value generated by the Interpump Group during 2019 amounted to Euro 1,395 million (Net revenues – net result), of which 88.7% was distributed.

(in thousands of Euro)

2018

2019*

Total economic value generated

1,310,378

1,395,254

Total economic value distributed

1,160,540

1,242,020

– Personnel

297,162

319,757

– Suppliers**

761,600

818,921

– Public administration

69,659

65,265

– Shareholders***

24,157

28,580

– Financial system

7,962

9,497

Total economic value retained

149,838

153,234

  • The statement of the economic value generated and distributed has been calculated starting from the Group Consolidated Income Statement and therefore includes the Reggiana Riduttori Group.
  • This line item includes the amortization of intangible assets
  • This line item includes the proposed distribution of dividends for 2019, which the Board of Directors has resolved to recommend to the Shareholders’ Meeting of Interpump Group S.p.A.

See the “Annual Report for 2019” on the corporate website www.interpumpgroup.it for further details.

Other performance indicators

GRI 205-1; GRI 206-1; GRI 416-2

During the three-year reference period no legal proceedings were initiated in relation to unfair competition, anti-trust and monopoly practices concerning or involving the Interpump Group.

At Interpump Group level, no cases of non-conformity with the product safety regulations were identified in 2019 and 2018 that would have required activation of the product recall policy.

Finally, during the three-year reporting period several suppliers of IPG were subjected to an assessment of social topics. In any case, the principles regarding respect for those topics are set down in the Code of Ethics, which is distributed to the main suppliers.

2019 │ Consolidated non-financial statement

Interpump Group S.p.A.

  1. Personnel-relatedarea
    Material topics

Based on the analysis of materiality (see chapter 3.2 Analysis of materiality for further details), the material topics for IPG in the personnel-related area are:

  • Occupational health and safety;
  • Management of human capital;
  • Training;
  • Non-discriminationand equal opportunities.

Risks

The main risks identified in the area of personnel, such that may become significant in relation to the pursuit of the company strategy in the medium/long-term, are related to:

  • operational risks, connected to change management (e.g. risks linked to inability/difficulty in finding new qualified/specialized staff), to the protection of minorities (gender – given the group’s core business, language groups, etc.) and in general, to management of the workforce (employees and temporary workers) in various world countries.
  • compliance risks due to failure to respect normative requirements related to regulations concerning employment and occupational health and safety. Events of this type could expose the company to penalties and legal proceedings, including criminal charges (e.g.: offenses included in Decree 231/01). Such events could also expose the company to disputes, such as employee disputes (e.g. health and safety, employment and salaries, etc.)

Risk management

Risk type

Policies

Risk management

Model

Training programs on health and safety

Systems for management of occupational

health

and

safety

pursuant

to

Operational

Succession

policies

and

diversity

policies

international standards ISO 45001 – 2018

with reference to the group parent company

with

reference

to

certain

(currently being evaluated)

companies/facilities

Code of Ethics – in particular, ensuring equal

opportunities

and

basing

its

conduct

on

Special Section of the Organization and

principles aimed at acknowledging the value

Management Model – concerning Italy-

of human resources, with special reference to

based

companies

for

which

the

the physical and moral integrity of workers

opportunity

has

been

assessed

in

and

correct

management

of

personnel,

consideration of the activity performed and

ensuring that each manager values the work

the level of risk.

activities of his or her personnel, requesting

Global Compliance Program (see section

duties that

are consistent

with their

job

3.4 for further details)

concerning

all

descriptions and with the work organization

Group

companies

without

an

Compliance

plans.

Organization,

Management

and Control

In addition, the Group undertakes to diffuse

Model

and

consolidate

a

culture

of

safety,

Systems for management of occupational

performing

actions

of

a

technical

and

health

and

safety

pursuant

to

organizational nature and basing its conduct

international standards ISO 45001 – 2018

on principles aimed at preventing risks and

with

reference

to

certain

avoiding all potentially hazardous situations.

companies/facilities

Workplace health and safety policies – in

Insurance cover – employer’s liability

insurance.

relation to companies/facilities having

safety management systems.

2019 │ Consolidated non-financial statement

Interpump Group S.p.A.

Performance indicators

Occupational health and safety

GRI 103-2; GRI 103-3; GRI 403-9

Management of occupational health and safety

GRI 403-1; GRI 403-2; GRI 403-3; GRI 403-4; GRI 403-5; GRI 403-6; GRI 403-7

The Interpump Group focuses attention on occupational health and safety and strives to guarantee a safe workplace for all employees. For this reason, the Group has included specific health and safety guidelines in the Global Compliance Program (see section 3.4 for further details), in to align further the management of this topic within the Group.

Although a global model for OHS management was not available in 2019, Group companies strive to identify specific internal functions responsible for the management of health and safety matters. For example, most Group companies have implemented processes to identify any workplace hazards on a systematic basis; in particular, after identifying risks, the company prepares specific procedures to mitigate them via the provision of targeted training to employees. This is consistent with the best international practices, such as ISO 45001. In addition, as shown in the following chart, the management systems of 18.92% of Group companies are compliant with ISO 45001 and/or OHSAS 18001.

In terms of reporting any hazards, professional incidents and/or hazardous situations in the working environment, most production companies allow employees to notify their managers (e.g. Workers’ Safety Representative or Protection and Prevention Manager (HSO) in the Italian context) using predetermined channels. If necessary, these managers then prepare internal procedures compliant with the local regulations, providing employees with the information needed to mitigate the hazards identified.

The following principal activities contribute to the identification and reduction of health and safety risks:

  • periodic visits to and inspections of the workplace by the appointed medical officer;
  • monthly checks assisted by the relevant functions;
  • external audits carried out every quarter;
  • teams dedicated to prevention activities;
  • employee training.

In order to ensure the quality of the above activities, additional checks are carried out by such professionals as the medical officer or the HSO or other suitable personnel (as required by local regulations), who carry out periodic medical check-ups in the workplace during working hours.

In addition, where possible, Group companies strive to ensure employee participation and consultation with them regarding the development, implementation and assessment of the OHSMS; in certain cases, this process is facilitated by the formal participation, as required by local regulations, and involvement of the appointed workers’ safety representatives. Where formal worker-management committees have been established, their principal activities include: health monitoring, risk assessment, investigation of incidents and promotion of corrective actions to improve the conditions of workers.

General training, which is essential for the prevention of health and safety risks, is provided by most Group companies. Depending on the specific duties of different categories of worker, specific modules may also be activated to address the risks involved in their activities, for example: physical, ergonomic and chemical hazards present in the workplace and working environments.

Additionally, in some cases when not already required by law, voluntary access to healthcare and medical services by workers is facilitated by the arrangement of supplementary health insurance or membership of supplementary healthcare plans.

Lastly, with regard to prevention and mitigation of the impact of OHS issues on commercial relations, vendors are requested to read and sign for acceptance the Code of Ethics adopted by the Group.

2019 │ Consolidated non-financial statement

Interpump Group S.p.A.

Employees suffered 152 injuries involving more than one day of absence during 2019 (-11.1% vs 2018). By contrast, there were more injuries involving absence of less than 24 hours (94 in 2019 compared with 25 in 2018).

Overall, the total number of injuries was greater than in 2018, although this effect was mainly due to minor injuries, involving absence from work for less than 24 hours.

The external growth policy and, in general, the greater attention paid to matters of safety in the workplace by an industrial group listed on the stock exchange, with respect to the average acquired company, can result in significant variations in the data between years, depending on the specific circumstances at each company.

Below we give the main injury data and rates13 for the three-year reporting period, with an indication of the details for each type. This information is also provided for temporary workers; including them, the total number of injuries involving absence from work for more than 24 hours was 152 in 2019.

13 Injury rate (IR) = (no. injuries / no. hours worked) * 200,000

Occupational disease rate (ODR) = (no. occupational diseases / no. hours worked) * 200,000

2019 │ Consolidated non-financial statement

Interpump Group S.p.A.

GRI 403-9

Health and safety

2017

2018

2019

A) Employees

Hours worked

10,584,383

11,892,124

12,378,272

Total injuries

145

196

246

of which ≤ 1 day of absence

N.A.

25

94

of which > 1 day of absence and without high-consequence

145

169

150

of which > 1 day of absence and with high-consequence

N.A.

2

2

Total injury rate 14

2.74

3.30

3.97

of which ≤ 1 day of absence

N.A.

0.42

1.52

of which absence > 1 day of absence

2.74

2.88

2.46

Injury rate (high-consequence incidents)

N.A.

0.03

0.03

B) Temporary workers

Hours worked

1,671,695

2,723,626

2,272,136

Total injuries

6

11

21

of which ≤ 1 day of absence

N.A.

6

of which > 1 day of absence and without high-consequence

6

11

15

of which > 1 day of absence and with high-consequence

N.A.

Total injury rate

0.72

0.81

1.85

of which ≤ 1 day of absence

N.A.

0.53

of which > 1 day of absence

0.72

0.81

1.32

Injury rate (high-consequence incidents)

N.A.

C) External firms

Hours worked

N.A.

47,757

61,583

Total injuries

1

1

5

of which ≤ 1 day of absence

N.A.

of which > 1 day of absence and without high-consequence

1

1

5

of which > 1 day of absence and with high-consequence

N.A.

Total injury rate

N.A.

4.19

16.24

of which ≤ 1 day of absence

N.A.

of which > 1 day of absence

N.A.

4.19

16.24

Injury rate (high-consequence incidents)

N.A.

A+B+C) Total workforce

Hours worked

12,256,078

14,663,508

14,711,992

Total injuries

152

208

272

of which ≤ 1 day of absence

N.A.

25

100

of which > 1 day of absence and without high-consequence

152

181

170

of which > 1 day of absence and with high-consequence

N.A.

2

2

Total injury rate

N.A.

2.84

3.70

of which ≤ 1 day of absence

N.A.

0.34

1.36

of which > 1 day of absence

2.48

2.50

2.34

Injury rate (high-consequence incidents)

N.A.

0.03

0.03

14 Note that the injury rate indicates the number of injuries per 100 employees, considering an annual workload of 200,000 hours (calculated as number of injuries * 200,000 / hours actually worked).

2019 │ Consolidated non-financial statement

Interpump Group S.p.A.

Health and safety

2017

2018

2019

Focus on injuries with absence > 1 day

Men

Women

Total

Men

Women

Total

Men

Women

Total

Injuries (no.)

128

17

145

155

16

171

133

19

152

Injury rate

2.9

2.0

2.7

3.1

1.8

2.9

2.6

1.9

2.5

Employees

Occupational diseases rate (ODR) 15

0.1

0.0

Lost days rate (LDR) 16

59.7

40.5

56.5

78.3

61.9

75.6

45.6

60.8

48.1

Average days lost per employee 17

0.6

0.4

0.5

0.8

0.6

0.7

0.4

0.5

0.5

Deaths from injury (no.)

1

1

The efforts made by the Group to reduce workplace risks is reflected in the decline (with respect to 2018) in the number of injuries involving absence from work for more than one days, as well as in the average length of absence (lost days rate – LDR), which was 36% lower than in 2018.

In terms of geographical area, the foregoing values can be broken down as follows:

2019 – Focus on injuries with absence > 1 day

Health and safety

Far East

Rest of

North

and

Rest of

Analysis by geographical area

Total

Italy

Europe

America

Pacific

the World

Basin

Injuries (no.)

152

91

30

13

5

13

Injury rate

2.5

3.6

2.2

1.2

1.2

1.6

Employees

Occupational diseases rate (ODR)

0.0

0.0

Lost days rate (LDR)

48.1

84.2

39.2

9.8

14.8

10.2

Average days lost per employee

0.46

0.76

0.35

0.10

0.15

0.12

Deaths from injury (no.)

In addition, most workforce injuries involving absence for more than 24 hours (172 incidents) related to crushing (41%) and cuts (19%).

  1. Note that the occupational diseases rate (ODR) indicates the number of occupational diseases per 100 employees, considering an annual work load of 200,000 hours (calculated as number of occupational diseases * 200,000 / hours actually worked).
  2. Note that the lost days rate (LDR) indicates the number of days lost due to injury per 100 employees, considering an annual work load of 200,000 hours.
  3. Calculated as the number days lost divided by the number of employees at 31/12.

2019 │ Consolidated non-financial statement

Interpump Group S.p.A.

GRI 403-9

Health and safety

2017

2018

2019

Temporary workers

Men

Women

Total

Men

Women

Total

Men

Women

Total

Injuries (no.)

6

6

9

2

11

13

2

15

Deaths from injury (no.)

The employee absentee rate18 was 3.0% in 2019.

Employee absentee rate (AR)

2017

2018

2019

Men

2.9%

3.1%

3.0%

Women

3.4%

3.6%

3.3%

Total

3.0%

3.2%

3.0%

18 Absentee rate (AR), expressed as a percentage: number of days of absence (days lost due to illness + unjustified absences) / number of working days

2019 │ Consolidated non-financial statement

Interpump Group S.p.A.

Human capital

GRI 102-8; GRI 103-2; GRI 103-3

The Interpump Group considers human capital to be a key resource underpinning the success and continuity of the business, and a distinctive factor in maintaining the global leadership consolidated by the Group in recent years.

The number of employees included within the scope of this NFS totals 6,856, up from 6,516 in 2018 (having excluded the Reggiana Riduttori Group from the scope of this report). About 50% of the increase of 340 was attributable to the acquisitions made during 2019.

Most employees are located in Italy and elsewhere in Europe (especially Germany, Spain and the UK).

The Interpump Group considers the ability to attract and retain young talents to be fundamental and a key strength of the business. The average age of employees falls in the 30-50 range (57.34%).

Female employees account for 17.28% of the total. The level of female employment is nonetheless significant, given that the sector is historically considered to be a male domain.

Employment

GRI 102-8-1; GRI 102-8-3; GRI 102-41;103-2; GRI 103-3; GRI 405-1_b

The Interpump Group workforce has grown steadily over the years, having more than doubling in the last decade (see the Report on operations in 2019 for more details). At 31st December 2019, the number of employees included within the scope of the NFS totaled 6,856, up by 5.22% compared with the prior year and by 15.97% since 2017 (+944 persons). The increase recorded in the year is due mainly to the change in the scope of reporting; in fact, net of this change the increase was 1.8%. Also due to the social perception of the mechanical engineering industry, a large proportion of the employees are men (83% in 2019).

Personnel employed in Italy account for 44.92% (3,080 persons) of the total workforce (6,856 persons). In particular, despite the international vocation of the Group, with a presence in more than 30 countries, no policies have ever been adopted to delocalize the activities traditionally carried out in Italy.

2019 │ Consolidated non-financial statement

Interpump Group S.p.A.

The breakdown of personnel by age shows a majority (57.34%) in the 30 to 50 age group; 26.68% are above the age of 50, while the remaining part (16%, or 1,096 individuals) are under 30.

GRI 102-8-1

Employees

2017

2018

2019

< 30

30 –

> 50

Total

< 30

30 –

> 50

Total

< 30

30 –

> 50

Total

Category

Blue collar

50

50

50

697

2,084

899

3,680

764

2,248

1,016

4,028

781

2,387

1,115

4,283

White collar and

291

1,287

524

2,102

301

1,407

607

2,315

307

1,462

620

2,389

managers

Executives

59

71

130

1

87

85

173

90

94

184

Total

988

3,430

1,494

5,912

1,066

3,742

1,708

6,516

1,088

3,939

1,829

6,856

With regard to the composition of personnel, the situation was stable during the period 2017-2019. In 2019, 62.5% of employees are blue-collar workers, 34.8% are white-collar workers and managers and 2.7% are executives.

2019 │ Consolidated non-financial statement

Interpump Group S.p.A.

GRI 102-8

2017

2018

2019

Employees

Contract

Men

Women

Total

Men

Women

Total

Men

Women

Total

type

Full-time

4,863

853

5,716

5,342

964

6,306

5,633

1,011

6,644

Part-time

41

155

196

44

166

210

38

174

212

Total

4,904

1,008

5,912

5,386

1,130

6,516

5,671

1,185

6,856

Most employees are on full-time (96.9%) contracts; part-time contracts (212 individuals in 2019) are mainly granted to women (82.07%).

Employment is analyzed by gender and geographical area below.

Group total

Italy

Rest of Europe

North America

Far East and

Rest of the World

Pacific Basin

Year

2017

2018

2019

2017

2018

2019

2017

2018

2019

2017

2018

2019

2017

2018

2019

2017

2018

2019

Blue collar

3,680

4,028

4,283

1,990

2,097

2,179

684

849

897

448

488

618

154

199

186

404

395

403

Men

3,293

3,612

3,833

1,702

1,800

1,876

649

801

843

399

438

551

145

183

169

398

390

394

Women

387

416

450

288

297

303

35

48

54

49

50

67

9

16

17

6

5

9

White

2,102

2,315

2,389

805

843

850

449

569

603

350

372

393

150

195

198

348

336

345

collar

Men

1,492

1,620

1,675

536

553

559

303

388

423

257

266

274

99

129

126

297

284

293

Women

610

695

714

269

290

291

146

181

180

93

106

119

51

66

72

51

52

52

Executives

130

173

184

52

50

51

21

51

53

23

26

33

13

25

25

21

21

22

Men

119

154

163

48

46

47

20

45

48

20

23

27

10

19

19

21

21

22

Women

11

19

21

4

4

4

1

6

5

3

3

6

3

6

6

Total

5,912

6,516

6,856

2,847

2,990

3,080

1,154

1,469

1,553

821

886

1,044

317

419

409

773

752

770

Men

4,904

5,386

5,671

2,286

2,399

2,482

972

1,234

1,314

676

727

852

254

331

314

716

695

709

Women

1,008

1,130

1,185

561

591

598

182

235

239

145

159

192

63

88

95

57

57

61

2019 │ Consolidated non-financial statement

Interpump Group S.p.A.

Executives are almost equally distributed in the 30-50 and over-50 age groups, while the categories of blue- collar workers and white-collar workers and managers comprise, respectively, the intermediate age group (55.73% and 61.20% respectively), over-50s (26.03% and 25.95% respectively), and under-30s (18.23% and 12.85% respectively).

GRI 405-1_b

2019 │ Consolidated non-financial statement

Interpump Group S.p.A.

In addition to employees (89.2%), the Interpump Group’s workforce in 2019 also includes 827 temporary workers (10.76%).

During 2017-2019, the total workforce rose by 13.55% (+917 persons), although there was a slight reduction between 2018 and 2019, when the Group made less recourse to temporary workers (27 fewer than in 2017).

2019 │ Consolidated non-financial statement

Interpump Group S.p.A.

The large majority of temporary workers are blue-collar workers (about 96%), mostly men (92.7%), and are split almost equally between those under 30 and those between 30 and 50.

2019 │ Consolidated non-financial statement

Interpump Group S.p.A.

The total workforce is analyzed by geographical area below.

Group total

Italy

Rest of Europe

North America

Far East and

Rest of the World

Pacific Basin

Year

2017

2018

2019

2017

2018

2019

2017

2018

2019

2017

2018

2019

2017

2018

2019

2017

2018

2019

Workforce

6,766

7,854

7,683

3,146

3,458

3,322

1,179

1,533

1,608

851

954

1,091

317

420

427

1,273

1,489

1,235

Employees

5,912

6,516 6,856

2,847

2,990 3,080

1,154 1,469

1,553

821

886

1,044

317

419

409

773

752

770

Temporary

854

1,338

827

299

468

242

25

64

55

30

68

47

1

18

500

737

465

workers

The workforce is analyzed by gender and geographical area below, considering the type of contract used: permanent, fixed term or temporary.

Group total

Italy

Rest of Europe

North America

Far East and

Rest of the World

Pacific Basin

Year

2017

2018

2019

2017

2018

2019

2017

2018

2019

2017

2018

2019

2017

2018

2019

2017

2018

2019

Workforce –

permanent

5,586

6,151

6,613

2,745

2,851

2,990

996

1,284

1,436

819

881

1,042

256

386

379

770

749

766

contract

Men

4,616

5,060

5,476

2,199

2,278

2,413

828

1,064

1,216

674

722

850

201

304

292

714

692

705

Women

970

1,091

1,137

546

573

577

168

220

220

145

159

192

55

82

87

56

57

61

Workforce –

fixed-term

326

365

243

102

139

90

158

185

117

2

5

2

61

33

30

3

3

4

contract

Men

288

326

195

87

121

69

144

170

98

2

5

2

53

27

22

2

3

4

Women

38

39

48

15

18

21

14

15

19

8

6

8

1

External

collaborators/

854

1,338

827

299

468

242

25

64

55

30

68

47

1

18

500

737

465

not formalized

Men

788

1,257

767

248

416

202

17

58

52

28

56

37

18

495

727

458

Women

66

81

60

51

52

40

8

6

3

2

12

10

1

5

10

7

Total

6,766

7,854

7,683

3,146

3,458

3,322

1,179

1,533

1,608

851

954

1,091

317

420

427

1,273

1,489

1,235

workforce

Men

5,692

6,643

6,438

2,534

2,815

2,684

989

1,292

1,366

704

783

889

254

331

332

1,211

1,422

1,167

Women

1,074

1,211

1,245

612

643

638

190

241

242

147

171

202

63

89

95

62

67

68

2019 │ Consolidated non-financial statement

Interpump Group S.p.A.

Percentage of personnel covered by collective contracts

GRI 102-41

Italy

North

Far East and

Rest of

Rest of the

Group total

America

Pacific Basin

Europe

World

Employees covered by

collective bargaining

3,080

45

212

1,078

305

4,720

agreements

Total employees

3,080

1,044

409

1,553

770

6,856

% personnel covered by

collective bargaining

100.0%

4.3%

51.8%

69.4%

39.6%

68.8%

agreements

The Group strives to maintain constructive dialog with the trade unions, in compliance with the regulations in force in each country of operations. At 31/12/2019, 69% of all Group employees are covered by collective bargaining agreements.

2019 │ Consolidated non-financial statement

Interpump Group S.p.A.

Personnel: New hires and departures

GRI 401-1

The number of new hires and terminations is strongly influenced by the turnover of fixed-term employees. In this regard, the GS Hydro Group (consolidated from 2018) produces piping systems for projects in the industrial, naval and energy fields. These systems are installed by work crews hired for the duration of the project. Almost 80% of terminations of fixed-term contracts is attributable to this characteristic of the GS Hydro Group.

The number of new hires in 2019 totaled 1,175, +3% compared with 2018.

2017

2018

2019

New hires

Number

Rate

Number

Rate

Number

Rate

Gender

Men

793

16%

998

19%

1,026

18%

Women

104

10%

144

13%

149

13%

18%

Total

897

15%

1,142

1,175

17%

< 30

436

44%

413

39%

403

37%

372

11%

613

16%

627

16%

89

6%

116

7%

145

8%

897

15%

1,142

18%

1,175

17%

Terminations in 2019 totaled 1,061, up by 2% compared to 2018.

2017

2018

2019

Terminations

Number

Rate

Number

Rate

Number

Rate

Gender

Men

546

11%

952

18%

937

17%

Women

102

10%

88

8%

124

10%

Total

648

11%

1,040

16%

1,061

15%

< 30

247

25%

252

24%

279

26%

Age

30 – 50

302

9%

607

16%

552

14%

> 50

99

7%

181

11%

230

13%

Total

648

11%

1,040

16%

1,061

15%

2019 │ Consolidated non-financial statement

Interpump Group S.p.A.

New hires and terminations during the reporting period are analyzed below together with the consequent incoming and outgoing turnover rates 19 ; the new hires and terminations in 2019 are also analyzed by geographical area. At Group level, the turnover is positive by 11% (114 more arrivals than departures).

Focus 2019

Group total

Italy

Rest of

North

Far East and

Rest of the

Europe

America

Pacific Basin

World

Total new hires by gender

1,175

264

473

260

76

102

Men

1,026

229

441

207

58

91

Women

149

35

32

53

18

11

Total new hires by age band

1,175

264

473

260

76

102

< 30

403

125

96

97

41

44

30 – 50

627

122

289

128

32

56

> 50

145

17

88

35

3

2

Total terminations by gender

1,061

201

449

240

86

85

Men

936

169

414

201

75

77

Women

125

32

35

39

11

8

Total terminations by age

1,061

201

449

240

86

85

band

< 30

279

49

67

97

42

24

30 – 50

552

85

293

84

35

55

> 50

230

67

89

59

9

6

19 The incoming turnover rate is calculated as follows: (number of hires / total employees) x 100;

Outgoing turnover rate calculated as follows: (number of terminations/total employees) x 100.

2019 │ Consolidated non-financial statement

Interpump Group S.p.A.

Development and qualification of the workforce

GRI 404-1; GRI 205-2; GRI 405-1

A significant aspect of personnel management is the attention paid to internal resources, which can take multiple forms; among these one of the main activities is the training of employees.

More than 81,251 training hours were delivered in 2019, up by 8.4% versus 2018 or by 5.2 % net of differences in the scope of reporting. Training hours in 2019 were 11.9 per capita, slightly higher than in 2018 (11.5 hours) and more than in 2017 (10 hours). The principal areas of training provided by Interpump comprise technical matters, occupational health and safety and topics relating to the fight against corruption.

Details concerning the per capita training hours delivered in the reporting period are shown below.

2017

2018

2019

Training hours per capita

hrs/emp

hrs/emp

hrs/emp

Gender

Men

9.4

11.9

12.0

Women

12.8

9.8

11.1

Total

10.0

11.5

11.9

Blue collar

7.8

11.0

11.7

Category

White collar and managers

13.5

12.3

11.9

Executives

13.5

13.1

14.1

Total

10.0

11.5

11.9

2019 │ Consolidated non-financial statement

Interpump Group S.p.A.

Diversity of corporate bodies

GRI 405-1_a

With regard to the diversity of the administrative bodies, the following information about the members of Group boards relates to their gender and age. In particular, in 2019 out of a total of 257 individuals (several of whom sitting on several administrative bodies), 94.6% were men (94.8% in 2018); 65% are over 50, while the remainder are in the 30 to 50 range.

2019

Diversity on corporate bodies

Gender

Number

Incidence %

Men

243

95%

Women

14

5%

Total

257

100%

< 30

-%

Age

30 – 50

90

35%

> 50

167

65%

Total

257

100%

Episodes of discrimination and corrective actions taken

GRI 406-1

At Interpump Group level, no instances of discrimination were reported during the three-year period under review.

2019 │ Consolidated non-financial statement

Interpump Group S.p.A.

7) Area related to respect for human rights

Material topics

Based on the analysis of materiality (see chapter 3.2 Analysis of materiality for further details), the material topics for IPG relating to respect for human rights are:

Risks

The main risks identified in with reference to the respect of human rights, such that can become of significance in relation to the pursuit of the company strategy in the medium/long-term, concern:

  • operational risks, linked to inefficient management of any issues related to the abuse of human rights, whether real or presumed.
  • legal and compliance risks, in the case of management of any lawsuits associated with violations (real or presumed) of universally recognized human rights, such as child labor or slave labor, whether linked to the direct or indirect workforce (chain of supply) or to the local communities in which the Group operates, especially in higher risk geographical areas.

Risk management

Risk type

Policies

Risk management

Model

Code of Ethics – with special reference

to the assurance of equal employment

opportunities in the recruitment of personnel

Special Section of the Organization and

(avoiding discrimination on the basis of race,

Management Model – concerning Italy-

color, gender, creed, nationality, and age), to

based companies for which this is deemed

Compliance and legal

the undertaking to protect the moral integrity

appropriate

in view of

the

activities

of its workers,

guaranteeing

the right

to

performed and the level of risk.

Operational

working conditions

that are

respectful

of

Global Compliance Program (see section

personal dignity and the intolerance of any

3.4 for further details)

concerning

all

form of illegal labor practices. Moreover, the

Group

companies

without

an

Group guarantees

respect

of

equal

Organization,

Management and

Control

opportunities also in

management

of

the

Model

employment relationship and in the

maintenance

of

discrimination-free

workplaces.

Performance indicators

GRI 412-3

Significant contracts that include human rights clauses

Contracts with vendors follow different approval procedures based on their significance and, hence, the more important the contract the more it is subject to a stringent hierarchy of checks and approval steps. At Interpump Group level, 15, 15 and 13 significant contracts20 were signed in 2019, 2018 and 2017 respectively. Of these, two signed in 2019 (13% of the total) and one signed in 2018 include specific human rights clauses.

20 For the purposes of this report, purchase orders or contracts having overall value greater than 500,000 euro (per single order or contract) are classified as significant.

2019 │ Consolidated non-financial statement

Interpump Group S.p.A.

  1. Area concerning anti-corruption activities (active and passive)
    Material topics

Based on the analysis of materiality (see chapter 3.2 Analysis of materiality for further details), the material topics for IPG relating the fight against corruption are: Fight against corruption.

Risks

In the context of anti-corruption activities, the main risks that can become significant in the context of pursuit of the medium/long-term corporate strategy are related to the commission of acts of corruption from/toward the public administration and from/toward members of the public.

In particular, these risks can comprise:

  • operational risks
  • compliance risks and consequent exposure of the organization to criminal charges in countries with anti-corruption legislation. Corruption-related risks can affect multiple company processes, from selection of contractual counterparties to the management of gifts, donations and entertainment expenses, the recruitment of personnel or lack of transparency in company reporting, management of cash flows, and so forth.

Risk management

Risk type

Risk management

Policies

Model

Compliance and legal

Operational

Code of Ethics – with special reference to the Anti-Corruption Program (“ACP”) that defines the position of the Group with respect to anti-corruption activities and defines the aspects on which attention must be focused to remove the risk of cases of noncompliance in this area.

Moreover, the Group is resolute in its condemnation of any form of public and/or private corruption, requiring each Group Company to implement all the necessary actions aimed at preventing the commission of offenses of corruption of any whatsoever type. The Group prohibits any conduct, irrespective of the party concerned, involving direct or indirect promises or offers of cash or other benefits to private parties, public officials and/or local or foreign public servants, such that could result in an undue or illicit interest or advantage. The foregoing types of conduct are not permitted either if adopted directly by the one of the Group companies, by its corporate bodies or by its employees, or if adopted by persons acting on behalf of the Group and/or on behalf of any of the Group Companies.

  • Special Section of the Organization and Management Model – concerning Italy- based companies for which this is deemed appropriate in view of the activities performed and the level of risk.
  • Global Compliance Program (see section 3.4 for further details) – concerning all
    Group companies without an Organization, Management and Control Model.

2019 │ Consolidated non-financial statement

Interpump Group S.p.A.

Performance indicators

GRI 103-2; GRI 103-3; GRI 205-3; GRI 415-1; GRI 419-1

At the Interpump Group level, no cases of corruption or payments to political parties were identified or reported during the three-year reporting period.

During the three-year reference period the number and value of fines levied for non-compliance with laws and/or regulations in the economic and social area were not significant.

2019 │ Consolidated non-financial statementInterpump Group S.p.A.

9) GRI Content Index

GRI

Name of standard

Chapter – page / Description

Omission

Standard

General Aspects

102-1

Name of the organization

Par. 1) – page 4;

102-2

Activities, brands, products, and

Par. 1) – pages 5-6;

services

102-3

Location of headquarters

Par. 1) – page 4;

102-4

Location of operations

Par. 1) – page 4; par. 1.1) – pages 7-8;

102-5

Ownership and legal form

Par. 1) – page 4; par. 1.1) – page 7; par.

2.3) – page 13 -14; par. 5) – page 33;

102-6

Markets served

Par. 1) – page 4; par. 1.1) – pages 7-8;

102-7

Scale of the organization

Par. 1) – page 4; par. 1.1) – pages 7-8;

par. 5) – page 33;

102-8

Information on employees and

Par. 6) – pages 43; 45-46;

other workers

102-9

Supply chain

Par. 1.2) – page 8-10;

Significant changes to the

102-10

organization and its supply

Par. 2.1) – page 11;

chain

102-11

Precautionary principle or

Par. 3.3) – pages 20-21;

approach

102-12

External initiative

Par. 2.1) – page 11; Par. 3.1) – page 16;

Par. 3.4) – pag. 21

102-13

Membership of association

Par. 3.1) – page 16;

102-14

Statement from senior decision-

Letter to Stakeholders – page 2)

maker

102-16

Values, principles, standards,

Par. 1) – page 4

and norms of behavior 2016

102-18

Governance structure 2016

Par. 2.3) – page 13-14;

102-40

List of stakeholder groups

Par. 3.1) – page 16;

102-41

Collective bargaining

Par. 6) – page 47

agreements

102-42

Identifying and selecting

Par. 3.1) – page 16;

stakeholder

102-43

Approach to stakeholder

Par. 3.1) – page 17;

engagement

102-44

Key topic and concern raised

Par. 3.2) – page 17;

Entities included in the

102-45

consolidated financial statements

Par. 1.1) – page 7; par. 2) – page 11;

2016

102-46

Defining report content and

Par. 2) – page 11; par. 3.2) – pages 17-

topic Boundaries 2016

19

102-47

List of material topics 2016

Par. 3.2) – page 18;

102-48

Restatements of information

Par. 2) – page 11

102-49

Changes in reporting

Par. 2) – page 11; par. 3.2) – page 19

102-50

Reporting period

Par. 2) – page 11

102-51

Date and most recent report

March 2019

102-52

Reporting cycle

Par. 2) – page 11

102-53

Contact point for questions

Write to csr@interpumpgroup.it for

regarding the report

more information about this NFS.

2019 │ Consolidated non-financial statementInterpump Group S.p.A.

Claims of reporting in

102-54

accordance with the GRI

Par. 2) – page 11

Standards

102-55

GRI content index

GRI Content Index – pages 55-60

102-56

External assurance

Audit report – pages 61-63

Economic aspects

GRI 201

Economic performance 2016

103-1

Explanation of the material topic

Par. 3.2) – pages 18-19; par. 5) – pages

and its Boundary

32-34

103-2

The management approach and

Par. 5) – pages 32-34

its components

103-3

Evaluation of the management

Par. 5) – pages 32-34

approach

201-1

Direct economic value generated

Par. 5) – page 34

and distributed

GRI 205

Anti-corruption 2016

103-1

Explanation of the material topic

Par. 3.2) – pages 18-19; par. 8) – page

and its Boundary

53

103-2

The management approach and

Par. 3.4) – pages 20-21; par. 8) – page

its components

53

103-3

Evaluation of the management

Par. 3.4) – pages 20-21; par. 8) – pages

approach

53-54

205-3

Confirmed incidents of

Par. 8) – page 54

corruption and actions taken

GRI 206

Anti-competitive behavior 2016

103-1

Explanation of the material topic

Par. 3.2) – pages 18-19; par. 5) – pages

and its Boundary

32-34

103-2

The management approach and

Par. 5) – pages 32-34

its components

103-3

Evaluation of the management

Par. 5) – pages 32-34

approach

Legal actions for anti-

206-1

competitive behavior, anti-trust

Par. 5) – page 34

and monopoly practices

2019 │ Consolidated non-financial statementInterpump Group S.p.A.

Environmental Aspects

GRI 302

Energy 2016

103-1

Explanation of the material topic

Par. 3.2) – pages 18-19; par. 4) – pages

and its Boundary

23-24

103-2

The management approach and

Par. 4) – pages 23-24

its components

103-3

Evaluation of the management

Par. 4)

– pages 23-24

approach

302-1

Energy consumption within the

Par. 4)

– page 25

organization

302-3

Energy intensity

Par. 4)

– page 25

GRI 303

Water 2016

103-1

Explanation of the material topic

Par. 3.2) – pages 18-19; par. 4) – pages

and its Boundary

26-27

103-2

The management approach and

Par. 4)

– pages 23; 26-27

its components

103-3

Evaluation of the management

Par. 4)

– pages 23; 26-27

approach

303-1

Water withdrawal by source

Par. 4)

– page 26

GRI 305

Emissions 2016

103-1

Explanation of the material topic

Par. 3.2) – pages 18-19; par. 4) – pages

and its Boundary

28-29

103-2

The management approach and

Par. 4) – pages 23; 28-29

its components

103-3

Evaluation of the management

Par. 4) – pages 23; 28-29

approach

305-1

Direct (Scope 1) GHG emissions

Par. 4) – page 28

305-2

Energy indirect (Scope 2) GHG

Par. 4) – page 28

emissions

305-4

GHG emissions intensity

Par. 4) – page 29

Nitrogen oxides (NOX), sulfur

305-7

oxides (SOX), and other

Par. 4) – page 29

significant air emissions

GRI 306

Effluents and waste 2016

103-1

Explanation of the material topic

Par. 3.2) – page 18-19; par. 4) – pages

and its Boundary

26-27; 30

103-2

The management approach and

Par. 4) – page 23; par. 4) – pages 26-27;

its components

30

103-3

Evaluation of the management

Par. 4) – pages 23; 26-27; 30

approach

306-1

Water discharge by quality and

Par. 4) – page 27;

destination

306-2

Waste by type and disposal

Par. 4) – pages 30-31;

method

GRI 307

Environmental compliance 2016

103-1

Explanation of the material topic

Par. 3.2) – pages 18-19; 31

and its Boundary

103-2

The management approach and

Par. 4)

– pages 23; 31

its components

103-3

Evaluation of the management

Par. 4)

– pages 23; 31

approach

Non-compliance with

307-1

environmental laws and

Par. 4)

– page 31

regulations

2019 │ Consolidated non-financial statementInterpump Group S.p.A.

Social aspects

GRI 401

Employment 2016

103-1

Explanation of the material topic

Par. 3.2) – pages 18-19;

and its Boundary

103-2

The management approach and

Par. 6) – pages 35; 48-50

its components

103-3

Evaluation of the management

Par. 6) – pages 48-50

approach

401-1

New employee hires and

Par. 6) – pages 48-50

employee turnover

GRI 403

Occupational health and safety

2018

103-1

Explanation of the material topic

Par. 3.2) – pages 18-19; par. 6) – page

and its Boundary

36

103-2

The management approach and

Par. 6) – page 35; par. 6) – pages 36-37

its components

103-3

Evaluation of the management

Par. 6) – pages 36-39

approach

403-1

Occupational health and safety

Par. 6) – pages 36-37

management system

Hazard identification, risk

403-2

assessment, and incident

Par. 6) – pages 36-37

investigation

403-3

Occupational health services

Par. 6) – pages 36-37

Worker participation,

403-4

consultation, and

Par. 6) – pages 36-37

communication on

occupational health and safety

403-5

Worker training on occupational

Par. 6) – pages 36-37

health and safety

403-6

Promotion of worker health

Par. 6) – pages 36-37

Prevention and mitigation of

403-7

occupational health and safety

Par. 6) – pages 36-37

impacts directly linked by

business relationships

403-9

Work-related injuries

Par. 6) – pages 38-39

GRI 404

Training and education 2016

103-1

Explanation of the material topic

Par. 3.2) – pages 18-19;

and its Boundary

103-2

The management approach and

Par. 6) – pages 35; 50-51

its components

103-3

Evaluation of the management

Par. 6) – pages 50-51

approach

404-1

Average hours of training per

Par. 6) – pages 50-51

year per employee

GRI 405

Diversity and equal

opportunity 2016

103-1

Explanation of the material topic

Par. 3.2) – pages 18-19; par. 6) – page

and its Boundary

2019 │ Consolidated non-financial statementInterpump Group S.p.A.

103-2

The management approach and

Par. 6) – pages 35; 44; 51

its components

103-3

Evaluation of the management

Par. 6) – pages 35; 44; 51

approach

405-1

Diversity of governance bodies

Par. 6) – pages 44; 51

and employees

GRI 406

Non-discrimination 2016

103-1

Explanation of the material topic

Par. 3.2) – pages 18-19; par. 6) – pages

and its Boundary

35; 41

103-2

The management approach and

Par 1) – pages 4-5; par. 6) – pages 35;

its components

41

103-3

Evaluation of the management

Par 1) – pages 4-5; par. 6) – pages 35;

approach

41

406-1

Incidents of discrimination and

Par. 6) – page 51

corrective actions taken

GRI 412

Human Rights Assessment 2016

103-1

Explanation of the material topic

Par. 3.2) – pages 18-19; par. 7) – page

and its Boundary

52

103-2

The management approach and

Par. 3.3) – pages 20-21; par. 7) – page

its components

52

103-3

Evaluation of the management

Par. 3.3) – pages 20-21; par. 7) – page

approach

52

Significant investment

agreements and contracts that

412-3

include

Par. 7) – page 52

human rights clauses or that

underwent human rights

screening

GRI 415

Public policy 2016

103-1

Explanation of the material topic

Par. 3.2) – pages 18-19; par. 8) – pages

and its Boundary

53-54

103-2

The management approach and

Par. 8) – pages 53-54

its components

103-3

Evaluation of the management

Par. 8) – pages 53-54

approach

415-1

Political contributions

Par. 8) – page 54

GRI 416

Customer Health and Safety

2016

103-1

Explanation of the material topic

Par. 3.2) – pages 18-19; par. 5) – pages

and its Boundary

32; 34

103-2

The management approach and

Par 3.4) – pages 20-21; par. 5) – pages

its components

32; 34

103-3

Evaluation of the management

Par 3.4) – pages 20-21; par. 5) – pages

approach

32; 34

Incidents of non-compliance

416-2

concerning the health

Par. 5) – pages 34

and safety impacts of products

and services

GRI 419

Socio-economic compliance

2016

103-1

Explanation of the material topic

Par. 3.2) – pages 18-19

and its Boundary

103-2

The management approach and

Par. 3.4) – pages 20-21; par. 8) – pages

its components

53-54

2019 │ Consolidated non-financial statementInterpump Group S.p.A.

103-3

Evaluation of the management

Par. 3.4) – pages 20-21; par. 8) – pages

approach

53-54

Non-compliance with laws and

419-1

regulations in the social and

Par. 8) – page 54.

economic area

2019 │ Consolidated non-financial statement

Interpump Group S.p.A.

Independent auditors’ report

2019 │ Consolidated non-financial statement

Interpump Group S.p.A.

2019 │ Consolidated non-financial statement

Interpump Group S.p.A.

Disclaimer

Interpump Group S.p.A. published this content on 13 April 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 13 April 2020 10:22:10 UTC

Latest news on INTERPUMP GROUP SPA

Sales 2020 1 395 M
EBIT 2020 243 M
Net income 2020 166 M
Debt 2020 303 M
Yield 2020 0,93%
P/E ratio 2020 18,8x
P/E ratio 2021 15,7x
EV / Sales2020 2,14x
EV / Sales2021 1,89x
Capitalization 2 686 M

Chart INTERPUMP GROUP SPA

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Interpump Group SpA Technical Analysis Chart | MarketScreener

Technical analysis trends INTERPUMP GROUP SPA

Short Term Mid-Term Long Term
Trends Neutral Bearish Bearish

Income Statement Evolution

Consensus


Sell

Buy
Mean consensus OUTPERFORM
Number of Analysts 5
Average target price
29,40  €
Last Close Price
25,20  €
Spread / Highest target 27,0%
Spread / Average Target 16,7%
Spread / Lowest Target -12,7%





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