Index L etter to S tak eh ol d ers 3 M eth od ol ogic al note 4 H igh l igh ts 5 I d entity and governanc e 6 - 1 5 O sc u l ati S . r. l . 8 O sc u l ati sal es netw ork 8 Osculati - the figures 9 O sc u l ati story 1 0 M ission and eth ic al p rinc ip al s 1 1 O sc u l ati b rand 1 2 A ssoc iations 1 2 Osculati’s governance 13 Transparent management and business integrity 14 The Governance of Sustainability 15 S us tainab il ity : a gl ob al p roj ec t 1 6 - 1 9 D ial ogue w ith s tak eh ol d ers and m aterial ity as s es s m ent 2 0 - 2 5 E c onom ic R es p ons ib il ity 2 6 - 3 1 Management performance 27 Supply chain management 28 New Supplier Selection Process 29 Ongoing supplier evaluation procedures 29 Environmental and social elements 29 Customer relations 30-31 E nvironm ental res p ons ib il ity 3 2 - 3 5 Enviroment policy 33 Energy consumption 34 Osculati goes for clean energy 35
E m is s ion red uc tion 3 6 - 3 9 Z ero® impact energy 36 Z ero imp ac t® projects for the offsettings of emissions 36 Direct emissions 37 Indirect emissions 38-39 W as te and rec overy 4 0 - 4 1 R es p ec t f or th e environm ent at every p rinting s tage 4 2 - 4 5 Paper 42-43 Fully recycled metal plates 44 Glues 44 T h e environm ent and d igital trans f orm ation 4 6 - 4 7 Osculati for One Ocean Foundation 47 P rod uc t res p ons ib il ity 4 8 - 5 1 Product quality and safety 49 Process and product innovation 50-51 S oc ial R es p ons ib il ity 5 2 - 6 5 Our people 53-55 Turnover 56 Safeguarding diversity and inclusiveness 57 Parental leave and equal pay 57 Training 58-59 The well-being of employees 60-61 Work-life balance 60 Health Promotion Programme 60 Benefits, taxation and donations 61 Health, safety and protection of workers 62-65 Accidents 64 Health and safety training 64-65 C om m itm ent to s oc ial w ork 6 6 - 7 4 G R I C O NT E NT I ND E X 7 9
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A l b erto, G iorgio, C l aud ia O s c ul ati The Board of Directors Letter to Stakeholders D ear S tak eh ol d ers, w e are p l eased to p resent to y ou th e O sc u l ati S . r. l . Sustainability Report 2023, another step forwards on our journey towards integrating sustainability into our business strategies and our commitments to a more sustainable and responsible future. Throughout 2023, Osculati continued to pursue its mission of providing high quality products and services for the marine industry, while maintaining a strong focus on ethical and su stainab l e b u siness p rac tic es. O u r emphasis on innovation, combined with transparent management, has enabled us to meet today’s global market challenges w ith resil ienc e and d etermination. One of our main objectives has been to engage in productive dialogue with our stakeholders. We firmly believe that the active involvement of all stakeholders is essential to establishing a shared and lasting path for growth. The commitment took the form of direct engagement as part of a structured materiality assessment, enabling us to find the most relevant ESG issues both for our business and for our stakeholders, ensuring th at w e ac t in l ine w ith th e expectations and needs of all th ose arou nd u s. We made significant progress in 2023 as regards our environmental initiatives, pursuing a policy that has led to a reduction in energy consumption and emissions, thanks in part to the use of clean energy. In addition to this we calculated scope 3 emissions related to logistics, and continued to improve waste management by promoting recovery and recycling, while investing in digital technology to reduce the environmental impact of our operations. On the social front, Osculati has strengthened its commitment to diversity and inclusion, promoting a safe and stimulating working environment for all employees. Training and skills development programmes, together with initiatives that promote employee wellbeing are aimed at establishing a positive and productive corporate climate. Looking to the future, we are aware that sustainability is not just a goal to be achieved, but amounts to a continuous process of improvement and innovation, w h ic h w e are read y to p u rsu e w ith d etermination. We thank you for your continued support and the faith you have placed in Osculati. We can together build a more sustainable and prosperous future for al l . 3
T h is S u stainab il ity R ep ort rep resents th e th ird y ear of s us tainab il ity rep orting f or O s c ul ati s . r. l . (hereinafter also referred to as “the Company” or “the Company” or “the Organisation”), which, starting from 2021, has decided to undertake this voluntary path to develop a project that sets out firstly to foster greater understanding of the risks and opportunities of sustainability and, consequently, to draw up longterm strategies for the creation of shared value. The report provides information on the economic, environmental and social issues that aids understanding of the Company’s activities and performance, the results achieved and the impact produced in the fiscal year from 1st January 2023 to 31st D ec emb er 2023 ( rep orting p eriod ) . To give stakeholders a useful reference for comparing Company performance, data for the two previous financial years are also reported where possible, i.e. from 1st January 2022 to 31st December 2022, and from 1 st January 2021 to 31st D ec emb er 2 0 2 1 . T o ensu re th e greatest possible reliability of the data and information reported, preference has been given to the inclusion of directly measurable quantities, avoiding the use of estimates as far as possible. T h e rep orting sc op e inc l u d es th e C omp any O sc u l ati s.r.l., which does not fall within the subjective scope of application of Legislative Decree 254 of 30th D ec emb er 2016, which, in implementation of Directive 2014/95/EU, provided for an obligation to prepare a Non-Financial Declaration (so-called “DNF”) for public interest entities exceeding certain quantitative thresholds. This Sustainability Report is therefore prepared on a voluntary basis and does not amount to a DNF. T h e d oc u ment h as b een p rep ared in ac c ord anc e w ith the guidelines set out by the G l ob al R ep orting I nitiative (GRI) S us tainab il ity R ep orting S tand ard s (hereinafter also referred to as ‘GRI Standards’) updated to 2021, according to the “ w ith ref erenc e to” level of application. The general principles applied in the preparation of the S u stainab il ity R ep ort are th ose estab l ish ed b y th e G R I Standards themselves: i.e. inclusiveness, verifiability, su stainab il ity c ontex t, c omp l eteness, c omp arab il ity , accuracy, timeliness, balance, clarity. The “GRI Content Index” section in the appendix highlights, for each material theme, the corresponding GRI disclosures. Included in the reporting in particular have been issues considered by the Company as strategic and material (i.e. relevant), insofar as they reflect the social and environmental impact of Osculati’s activities, or influence the decisions of its stakeholders. These E S G as p ec ts were identified by conducting a m aterial ity anal y s is structured according to the approach described in th e sec tion “Stakeholder Dialogue and Materiality Assessment”. The Report was approved by the Board of Directors of Osculati S.r.l. on 31/07/2024 and is made up of 6 sections, reflecting the various perspectives from which the activities of the Organisation are examined: • Identity and Governance • Stakeholder Dialogue and Materiality Assessment • E c onomic R esp onsib il ity • Environmental Responsibility • P rod u c t L iab il ity • S oc ial R esp onsib il ity F or m ore inf orm ation, p l ease c ontac t th e company at esg@ osc u l ati. it. Methodological note 4
• O V E R 6 0 Y E A R S O F H I S T O R Y • T H I R D Y E A R O F S U S T A I NA B I L I T Y R E P O R T I NG • S T A K E H O L D E R E NG A G E M E NT I N I M P A C T M A T E R I A L I T Y A S S E S S M E NT • C A L C U L A T I O N O F S C O P E 3 E M I S S I O NS R E L A T E D T O L O G I S T I C S • R E D U C T I O N O F C O NS U M P T I O N F R O M NO N- R E NE W A B L E S O U R C E S B Y 3 4 % C O M P A R E D W I T H 2 0 2 2 • 1 0 0 % O F W A S T E S E NT T O R E C O V E R Y O P E R A T I O NS • I M P R O V E M E NT O F C O S T U M E R E X P E R I E NC E T H R O U G H T H E I NT R O D U C T I O N O F T H E V I R T U A L A S S I S T A NT A E M I L I O • 6 3 % O F S U P P L I E R S L O C A T E D I N I T A L Y • 8 0 % O F T H E E C O NO M I C V A L U E G E NE R A T E D D I S T R I B U T E D T O T H E M A I N S T A K E H O L D E R C A T E G O R I E S • O V E R 9 7 % O F E M P L O Y E E S E M P L O Y E D O N A P E R M A NE NT B A S I S • P R O V I S I O N O F 2 , 8 9 7 H O U R S O F T R A I NI NG • M O NI T O R I NG O F G E ND E R E Q U A L P A Y • E S T A B L I S H M E NT O F A C O A C H I NG C O U R S E F O R T H E P S Y C H O L O G I C A L S U P P O R T O F E M P L O Y E E S Highlights 5
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Identity and governance 7
We are not yet here Our best selling countries O s c ul ati S . r. l . O s c ul ati S . r. l . , founded in 1958 as the first nautical accessories shop in Milan, is today the leading company in Italy and one of the biggest in Europe in this sector. With over 22,000 reference items and guaranteed merchandise availability at over 96%, it is the most imp ortant nau tic al eq u ip ment w areh ou se in E u rop e and one of the best stocked in the world. A distributor of leading international brands, the company has its own production of over 7,000 items, through its in-h ou se D es ign & E ngineering d ep artm ent. The company has always been a reliable point of reference for professionals and yachtsmen: 70% of orders from within the European Union are shipped the day after the order is received, while 30% are shipped th e same d ay . C ontinuous res earc h f or innovation and h igh es t q ual ity , with investments in tools for strict control of raw materials (for example the salt spray and UV chambers), has always been a hallmark of Osculati’s operations. O sc u l ati is now tru sted b y th e w orl d ’ s maj or sh ip y ard s and has been chosen as the official partner of some of the biggest brands in the industry such as Lewmar, Whale, Dometic / Oceanair, Polyform and Marlow. O s c ul ati s al es netw ork 8
N ew items introd u c ed eac h y ear 1.000 A v ail ab il ity of g ood s 96% T ons of g ood s sh ip p ed eac h d ay 17,5 D eal ers arou nd th e w orl d 6.000 W areh ou se siz es 21.000 m2 P rod u c ts in th e g eneral c atal og u e 22.000 O sc u l ati b rand ed items 7.000 O rd ers p roc essed d ail y 6.500 C ou ntries th at reg u l arl y rec eiv e O sc u l ati g ood s 100 V al u e of g ood s in w areh ou ses 42M€ Osculati - the figures With over 6 , 0 0 0 d eal ers w orl d w id e and 2 5 area s al es m anagers around th e c ountry , O sc u l ati h as a p resenc e in al l 5 c ontinents . I n ad d ition, arou nd 5 0 “ C orners ” in I tal y have been distributing to all regions, making Osculati a point of reference both for trade customers and end users. 9
1958 ‘63 ‘75 ‘80 2016 2022 ‘95 2020 2008 2021 E m il io O s c ul ati, h el p ed b y his son Mario, set up the first nautic al s h op in M il an: O s c ul ati F orniture Nautic h e. F irs t s al es outs id e E urop e. O p ening of new w areh ous e and d oub l ing of area f or p rep aration of ord ers . O ver 1 0 0 c ountries are regul arl y s up p l ied w ith O s c ul ati’ s p rod uc ts . 1 s t artic l e d es igned and p rod uc ed b y O s c ul ati. T h e s al es val ue of good s in stock first rose above 1 M€. O p ening of new p rod uc tion w areh ous e. W ith th e op ening of O s c ul ati & C . in V ers il ia ( T us c any ) , th e O s c ul ati G roup c am e into b eing. 5 0 0 ord ers a d ay s h ip p ed th rough out th e w orl d . For the first time, turnover exceeds 100 M€. O s c ul ati s tory 10
M is s ion and eth ic al p rinc ip al s Osculati’s mission is to provide its customers with everything they need to build or maintain their boats, in the time frame they want and at the best possible value for money. In short, to make it easy for clients to design, b u il d or maintain a b oat. The business model is based on core values that guide the company in ensuring a buying experienc e th at meets al l c u stomer need s. T o th is end , th e management is constantly researching and developing new solutions, while diversifying its range of services and products. A culture of innovation has enabled the company to achieve excellent results and show great resilience as it adapts to market changes. At the same time Osculati is always striving to offer affordable prices without compromising product quality and rel iab il ity . Another strength of Osculati is its choice of strategic partners with whom the company has been working for many years now to ensure ever better and faster service to customers worldwide. All the business conducted and managed by Osculati is based on integrity and transparency and is conducted with honesty, loyalty and a sense of responsibility. The values Osculati has taken as its own are traceable to the “Charter of Corporate Values1 ” as the company commits itself to recognising and respecting its content in respect of its stakeholders. In particular, the values O sc u l ati h ol d s d ear in and is insp ired b y on a d ail y basis are the following: 1 The Charter of Corporate Values was proposed by the European Institute for Social Reporting and is taken from the Nova Spes Foundation Charter of Human Values, in turn taken up in 1989 by the UN to give timely and socially unambiguous guidance for companies in their decision-making. • E th ic al c ond uc t in rel ation to emp l oy ees, su p p l iers, c u stomers and al l stak eh ol d ers. • C oop eration and team s p irit: no matter h ow capable and determined each of us is, we achieve more by working together. • S af ety : a priority aspect in all of its ramifications, including safety in the workplace for all employees and product safety for end u sers. • E th ic al and b al anc ed d evel op m ent: w e work to ensure balanced economic growth and steady long-term development by truly valuing our human resources and respecting the environment with a highly conscious use of resou rc es. 11
O s c ul ati B rand Osculati is today made up of two companies: Osculati S.r.l. headquartered in Segrate, Via Pacinotti 12 is the hub of the brand, playing central role at the strategic level and setting the general guidelines. Its area of competence is b oth national and international , and it d eal s w ith large shipyards and dealers worldwide. From the p arent c omp any . I n ad d ition to th at new p rod u c ts are selected, designed and developed while there is also a production area where a part of the products of inhouse design are manufactured. Osculati & C. S.p.A. based in Lucca, via Sottopoggio snc, it was established in 1975 with the opening of the Versilia branch, under the leadership of partners Stefano and Francesco Gambogi. The company focusses particularly on marketing the Osculati catalogue products particularly in this region. The reporting scope of this report refers only to Osculati S.r.l. However, the affiliated company based in Lucca has long supported sustainability measures in every aspect. A s s oc iations Osculati S.r.l. is a member of: • U C I NA - Confindustria nautica: an association representing pleasure boating industries and companies, working for the development of the boating sector and promoting sea culture and the development of nautical tourism in Italy. • I B C - Association of Consumer Goods Industries: an association with the aim of promoting the efficiency and effectiveness of the consumer goods industries in th eir rel ations w ith th e mark et. • U NI - Ente Nazionale Italiano di Unificazione: a private, non-profit association recognised by the State and the European Union, which for almost 100 years has drawn up and published voluntary technical standards - the UNI standards - in all industrial, commercial and service sectors. Osculati S.r.l. SEGRATE (MI) Osculati & C. S.p.A. LUCCA DISTRIBUTION DESIGN PRODUCTION DISTRIBUTION TECHNOLOGICAL INNOVATION 12
The Osculati family – Mario, Giulia, Alberto, Giorgio and Claudia Osculati O s c ul ati’ s governanc e The solidity of the family governance at Osculati effectively supports an industrial approach aimed at the creation of value in both the short and long terms. The policy of implementing forward-looking development strategies has enabled Osculati to grow steadily over the last 10 years, a growth that has not been halted at any time even during recent periods characterised by global market uncertainties. The Corporate Governance model adopted by Osculati is traditional, with a Board of Directors chaired by Mario Alberto Osculati, foundr of the Company and currently manager of the purchase department. In addition to the chairman, the managing directors Alberto, Giorgio and Claudia Osculati are also members of the board of d irec tors. Each member can legally represent the Company and has executive powers and operational proxies according to their areas of competence. The mandate d oes not exp ire and th ere are c u rrentl y no ind ep end ent directors on the Board of Directors. In addition, there are no established executive committees and all decisions are shared by the Governing Body for the areas of comp etenc e. The Governing Body is entrusted with the task of defining, directing and developing the mission and strategy of creating shared value. The importance Osculati’s Board of Directors attaches to Sustainability is increasingly evident, both in terms of shared objectives and the Organisation’s concrete actions aimed at raising Stakeholder awareness and defining a more ESG-structured management system. W om en A ged < 3 0 M en A ged 3 0 - 5 0 T otal A ged > 5 0 N. 1 N. 0 N. 3 N. 3 N. 4 N. 1 % 25% % 0% % 75% % 75% % 100% % 25% 13
T rans p arent m anagem ent and b us ines s integrity Osculati has organised the drawing up of a C od e of E th ic s , which is an essential instrument for defining the values and principles that guide all of its business activities. The official adoption of this document is scheduled for September 2024 with the aim of further consolidating the c ul ture of integrity and res p ons ib il ity w ith in th e C omp any , ensuring eth ic al and trans p arent c ond uc t in al l op erational areas. Osculati has also equipped itself with a w h is tl eb l ow ing p l atf orm , w h ic h al l ow s any one ( emp l oy ees and collaborating persons, suppliers and any oth er p erson w h o h as h ad or intend s to have business dealings with the Company) to report, through a guided on-line path, any suspected unlawful conduct or irregularities, or breaches of rules and in any case infringements of corporate procedures and provisions in general, in light of the protections provided by Legislative Decree 24/2023 implementing the EU Directive on Whistleblowing. Specifically, the whistleblowing platform, avail ab l e in nine l anguages , al l ow s th e w h istl eb l ow er to rep ort eith er in w ritten form, by manually processing the content, or orally, by sending a voice message. I n th is w ay , th e w h istl eb l ow er h as th e op p ortu nity to make his or her voice heard with the assurance of the utmost confidentiality, and respect for the highest security standards and the absence of any form of retal iation. 14
T h e G overnanc e of S us tainab il ity Effective management and careful monitoring of sustainability are of primary importance to Osculati. Its ESG function was established for this purpose in 2020 supervised by the Managing Director Alberto Osculati, with the aim of implementing rob us t s us tainab il ity governance reflecting the policies adopted. It is up to the Board of Directors to approve the policies, strategies and objectives of the corporate sustainability plan, as presented by the ESG function. The Board also delegates the execution of ESG actions to the corporate offices concerned.The current Governing Body is also has the tast to, on a daily basis, to coordinate and supervise organisational activities and guide the choices and decisions that directly or indirectly impact upon society, the environment and th e ec onomy . The Osculati family and management team, representing all company departments, and united in the name of sustainability. 15
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Sustainability: a global project Sustainability is not just an environmental issue but also has social and economic repercussions. Sustainable Development means having to think about the needs of the present without jeopardising the future. Aware of its own role, Osculati has chosen to link its goals with those of the 2030 Agenda. On September 25th , 2015, at a United Nations Summit, 193 countries around the world signed up to the 2030 Agenda for Sustainable Development. The goals relate to interconnected topics across the board, from gender equality, to the combatting of climate change, and to the accessibility of resources for all. The aims regard everyone and each one of us is c al l ed u p on to mak e h is or h er ow n c ontrib u tion tow ard s achieving them, each according to their abilities and p ossib il ities, w h eth er as a c ou ntry , as a c omp any or as an individual. At present, the company does not have a formal plan for achieving these objectives, but it is committed to pursuing them on a daily basis. One of Osculati’s projects concerns the drafting of a planning document for the three-year period 2024-2026, which will allow the formalisation of its commitments on sustainabilityrel ated issu es. 17
G oal ² O s c ul ati’ s c om m itm ent R ef . 3 1 : Putting an end to poverty in all its forms. 2 : Ending hunger, achieving food security, improving nutrition and promoting sustainable agriculture. C om m itm ent to s oc ial w ork T raining E nergy c ons um p tion R ed uc ing em is s ions T h e w el l - b eing of em p l oy ees C om m itm ent to s oc ial w ork P rotec tion of d ivers ity and inc l us ion P rod uc t q ual ity and s af ety P roc es s and p rod uc t innovation 4 : Providing quality, equitable and inclusive education and learning opportunities for all. 3 : Ensuring health and well-being for all, and for all ages. 5 : Achieving gender equality and strengthening the social status of all women and girls. 1 0 : Reducing inequalities within and b etw een nations. S up p ort f or as s oc iations engaged in the fight against poverty and hunger in th e w orl d . P rom otion of training and ref res h er c ours es f or em p l oy ees and c ol l ab orating w ork ers . Specific information and activities to rais e h eal th aw arenes s am ong our em p l oy ees . S up p ort to organiz ations d ed ic ated to p rovid ing h eal th as s is tanc e to th e m os t vul nerab l e p op ul ations . C om m itm ent to overc om ing gend er differences and reducing inequalities p artic ul arl y am ong its em p l oy ees and oth ers w ork ing w ith th e c om p any . 7 : Ensuring access to affordable, sustainable and modern energy systems for all. P rod uc tion of energy f rom renew ab l e s ourc es th rough th e us e of p h otovol taic p anel s and geoth erm al h eating s y s tem s . U s e of energy f rom renew ab l e s ourc es . P rom otion of m ore s us tainab l e m ob il ity am ong em p l oy ees and c ontrac tors . 8 : Promoting lasting, inclusive and sustainable economic growth, employment and decent work for all. 9 : Building a resilient infrastructure, promoting innovation and fair, resp onsib l e and su stainab l e ind u strial isation. M od ernis ation of th e w ork s p ac e in offices, logistics and production. In p artic ul ar, th e p rod uc tion s ite h as b een entirel y red es igned , w ith th e inc l us ion al s o of l ean w ork s tations . I nves tm ent in m ac h inery th at f ac il itates autom ation and red uc es th e w ork ing effort of human resources. P rom otion of p rod uc ts w ith an ec os us tainab l e f ootp rint. 18
R ef . 3 I nd irec t em is s ions T rans p arent m anagem ent and b us ines s integrity W as te and rec overy R es p ec t f or th e environm ent at al l s tages of p rinting R es p ec t f or th e environm ent at al l s tages of p rinting C om m itm ent to s oc ial w ork G oal ² 1 4 : Conservation and sustainable use of oceans, seas and marine resources for sustainable development. 1 5 : Promoting the earth’s ecosystem and biodiversity, managing forests and combating land degradation. 1 6 : E th ic al and c orrec t b u siness management. 1 7 : Strengthening the imp l ementation and renew al of global partnerships for development. 1 2 : Ensuring sustainable patterns of p rod u c tion and c onsu mp tion. 1 3 : Taking urgent measures to combat climate change and its c onseq u enc es. U s e of p ac k aging f rom rec y c l ed m aterial s . S ep arate c ol l ec tion of w as te. C al c ul ation and rep orting of S c op e 3 em is s ions rel ated to c ategory 4 ( U p s tream T rans p ortation and D is trib ution) , ac c ord ing to th e G H G P rotoc ol m eth od ol ogy . S up p orting initiatives aim ed at p rotec ting th e m arine environm ent. S up p orting A m az onian ref ores tation. U s ing p ap er m ad e f rom c orrec tl y and res p ons ib l y m anaged f ores ts ac c ord ing to th e s tric tes t environm ental , s oc ial and ec onom ic s tand ard s . R ed uc ing th e us e of p ap er in s om e of th e b us ines s p roc es s es th rough greater rel ianc e on d em aterial is ation and d igitis ation. P rom oting p eac ef ul and inc l us ive s oc ieties . P rovid ing univers al ac c es s to j us tic e, and building accountable and effective ins titutions at al l l evel s . C ol l ab oration w ith b od ies and as - s oc iations d irec tl y invol ved in ac h ieving th es e goal s . O s c ul ati’ s c om m itm ent 2 During 2023, no initiatives relevant to the achievement of SDG 6 (Ensure availability of water and sanitation for all) were implemented as it was not a priority of the corporate strategy. 3 Reference section. 19
Dialogue with stakeholders Category of stak eh ol d er G overning b od ies Periodic meetings To monitor and discuss company performance, ensure compliance with regulations and ethical practices, and draw up the long-term company strategies T o d raw u p and imp l ement su stainab il ity strategies, monitor the progress of initiatives and the pursuit of objectives included in the sustainability plan, and coordinate the collection of data for the su stainab il ity rep ort C onstant C onstant C onstant C onstant O c c asional O c c asional P eriod ic Specific meetings on sustainability, budget data collection, work and strategies coordination. Customer service, social networks, sales network as channel for listening, intermediation and c ommu nic ation. To gather feedback on Osculati’s products and services, improve quality and promote innovation, and enhance customer satisfaction and l oy al ty To report on company performance, defining supplies, sharing good practices, and collaborating on projects Maintaining transparent and collaborative relations, supporting the development of the local territory, and integrating Osculati into this context Educating and raising awareness of sustainability issues and the company’s activities, promoting innovation and social responsibility Regular meetings with suppliers and site visits, sharing of balance content. Partnership projects with governmental and non-governmental organisations, support for local associations and events in the area, collaboration with universities and local schools Collaboration with schools, universities and educational programmes Internal communication initiatives on sustainability issues, organisation of sustainability events, the opening up of listening channels, constant dialogue with HR management, training meetings, corporate welfare initiatives, corporate intranet, internal newsletter, and performance management To provide information on the company’s performance, supporting engagement and proactivity in company life, training people by fostering their personal and professional growth, and supporting people’s well-being M anagem ent and k ey p ers onnel f or s us tainab il ity is s ues O s c ul ati h um an res ourc es M arine p rof es s ional s and end us ers S up p l iers and d is trib uted b rand s F uture generations C om m unity , th e l oc al area and th e p ub l ic ad m inis tration Principals engagement activities F req u enc y of engagement Objectives and main issu es ad d ressed Osculati is well aware that its stakeholders rightly place sustainable growth of the business in a central role, just as it acknowledges that it has a great responsibility towards the stakeholders themselves. Maintaining a c onstant, stric t and transp arent rel ationsh ip w ith stakeholders is fundamental for the proper development of the Company’s activities and is indicative of the level of accountability that the Company assumes towards the economic and social environment with which it interacts. To this end, the Company believes it necessary to establish and maintain effective dialogue with its s tak eh ol d ers , with the further aim of acquiring new stimuli for innovation and for product quality. The Company envisages l envis ages th e ad op tion of a differentiated and customised approach for each s tak eh ol d er group , combining a series of targeted strategies and tools, such as training and communication campaigns, to inform and involve all those affected by the company’s activities. Involvement and discussion with stakeholders (soc al l ed S tak eh ol d er E ngagem ent) not only helps the c omp any to u nd erstand th eir need s, ex p ec tations and evaluations, but also allows the company to better determine its business strategies and objectives, while assessing the impacts, risks and opportunities of these. The methods of involvement implemented by Osculati are constantly evolving, with a view to continually improving the process of dialogue with stakeholders. In general, the Company’s relations network provides for differentiated tools and channels of dialogue commensurate with the different categories of stakeholders, consistent with their level of dependence and their influence on the Company. 20
and materiality assessment T h e el ements and areas th at mak e u p th e S u stainab il ity R ep ort, in ac c ord anc e w ith th e GR I S tand ard s, rel ate to issues that reflect the organisation’s significant economic, environmental and social impact, or that profoundly influence Stakeholder assessments and decisions. The term “impact” refers to the effect a company has on the economy, the environment and/or society, whether positive or negative. For the purpose of identifying relevant issues, the Company, in compliance with the requirements of the Reference Standards, conducted a m aterial ity as s es s m ent. T h ere are tw o m ain s tages in th is p roc es s : A b enc h m ark ing anal y s is c ond u c ted on a sample of 18 companies operating in the production and marketing of marine p rod u c ts, ac c essories and eq u ip ment, and shipyards of international standing, with the aim of identifying the sustainability issues most c ommonl y ad d ressed b y th e mark et. T h e ultimate aim of the activity was to identify a set of ESG issues significant to the context in which O sc u l ati op erates. T h e c omp anies in th e samp l e were examined with reference to the information made publicly available by them, analysing their ac tions, p ol ic ies and p rac tic es in p l ac e w ith respect to the following areas of interest: • G overnanc e; • H um an res ourc es ; • P rod uc ts & I nf ras truc ture; • S up p l y C h ain & C l ients ; • E nvironm ent. An analysis of the non-financial reports of c omp etitors and th eir w eb sites3 revealed the sustainability issues generally associated with Osculati’s reference sector, its products, the geographic areas in which it operates and the specific companies with which the Company has business relations (e.g. customers and suppliers). T h e b enc h mark anal y sis al so inc l u d ed consultation of some of the m ain international ref erenc e f ram ew ork s su c h as S A S B and S & P , in order to integrate the themes that emerged with the additional issues relevant to the industry so as to make the most of the most representative sustainability issues for sectors similar to those in w h ic h O sc u l ati op erates4. This first phase, preparatory to the start of the reporting work, has enabled us to understand Osculati’s positioning with respect to relevant sustainability issues in relation to the specific c ore b u siness. 1 3 Specifically, the s am p l e of c om p etitors analysed revealed that, out of 18, 6 companies have sustainability reporting and 7 have a sustainability sec tion on th eir w eb site. 4 T h e E S G M aterial ity M ap s of S & P G l ob al and th e S us tainab il ity A c c ounting S tand ard B oard ( S A S B ) w ere c onsu l ted as international l y recognised tools to identify potentially material areas and issues by business sector. For affinity to Osculati’s reality, two reference sectors were identified: Industrial machinery and goods and Marine Transportation. 21
Following this first stage of the process, the Company identified the most relevant impacts, associating th em w ith th e p otential l y material issu es th at emerged from the benchmark analyses. T h e imp ac t l ist is su b seq u entl y su b mitted , through d irec t s tak eh ol d er engagem ent, b y means of a m aterial ity q ues tionnaire, to a sample of stakeholders relevant to the Company. I n p artic u l ar, th e C omp any ask ed resp ond ents to assess, based on their knowledge and perception of Osculati and the sector in which it operates, all the impacts associated with the issues, prioritising them according to a relevance scale. Impacts were assessed on the basis of the significance that the business activities of Osculati and its value chain (e.g. suppliers and business partners) generate or could generate on the economic, environmental and social spheres and the likelihood that they might occur ( rel evanc e). At the end of the above analyses, the results of the survey submitted to the Stakeholders w ere p roc essed and a material ity th resh ol d w as established above which the impacts grouped into th emes sh ou l d b e c onsid ered as material , sinc e higher values correspond to higher materiality ratings. Specifically, this threshold corresponds to the value of the arithmetic mean of the ratings c ol l ec ted . The results made it possible to identify and prioritise six material themes for Osculati: 1 . Q ual ity , s af ety and rel iab il ity of th e p rod uc ts 2 . H eal th and s af ety at w ork 3 . C us tom er s atis f ac tion and c us tom er ex p erienc e 4 . W as te m anagem ent and c irc ul ar ec onom y 5 . S us tainab l e and res p ons ib l e innovation 6 . P rotec ting b iod ivers ity Following the processing of the survey results, the list of issues above the materiality threshold was also integrated with the issues that emerged from the consultation of the SASB and S&P ESG Materiality Map, even if not above this threshold, considering that these are issues identified as crucial for sectors similar to Osculati’s. In addition, the Governing Body decided to include these issues also considering the proximity of the sc ores w ith resp ec t to th e material ity th resh ol d (“Energy efficiency and fight against climate change”) and/or in order to ensure coverage of all macro areas of reporting (“Ethics and integrity in business conduct” and “Transparent governance and risk management”). Finally, with the aim of better reflecting th e C om p any ’ s c om m itm ent to h um an res ourc es ’ training and s k il l s d evel op m ent, th e Company’s Governing Body decided to include this issue in the list of its material topics. It was in particular decided to include the theme ‘Training and Skills Development’ by replacing it with the theme ‘Protection of Biodiversity’, given the lack of particularly significant impacts on biodiversity resulting from the organisation’s activities. 2 22
The following is a list of Osculati’s material issues, together with the impact corresponding to each issue, generated by the Company and its value chain on the environment and people. G O V E R NA NC E H U M A N R E S O U R C E S ETHICS AND INTEGRITY IN THE CONDUCT OF BUSINESS HEALTH AND SAFETY AT WORK TRANSPARENT GOVERNANCE AND RISK MANAGEMENT TRAINING AND SKILLS DEVELOPMENT GR I 2-27, 205-1, 205-3, 206-1 GR I 403 GR I 404-1, 404-2 • Prevention of negative events to the detriment of its stakeholders produced by breaches of regulations and/ or industry best practices or failure to manage risks; • Creation of value for all stakeholders fostered by an appropriate, ethical and transparent governance structure to oversee business processes; • Adverse event caused by the irresponsible conduct or negligent behaviour of Osculati’s employees or other actors due to non-compliance with the organisation’s principles and values; • Instability for employees, customers and suppliers due to unaccountable governance conduct. • Reduction of accidents at work through the organisation’s adherence to the highest quality safety standards and the strengthening of control, prevention and monitoring policies; • Protecting the welfare, health and safety of employees and all individuals whose operations are under the direct control of the organisation (e.g. interims workers, temp orary w ork ers, c ontrac t researc h ers, trainees, interns); • Increase in the number of accidents and occupational diseases due to negligent behaviour on the part of the organisation (e.g. failure to provide adequate PPE or poor maintenance of machinery); • Exposure of workers to avoidable hazards and accidents due to failure to provide adequate safety training and poor employee awareness of workplace hazards; • Failure to prevent and mitigate occupational health and safety risks due to the absence of clear and systematic procedures for reporting and managing accidents and near misses. • Mitigation of potential negative ESG impacts for stakeholders through proper implementation of adequate management systems and appropriate scenario analyses; • Sound and reliable governance with less likelihood of corruption as well as ensuring compliance with environmental, labour and human rights regulations; • Potential damage to stakeholders (e.g. local community and employees) due to adverse events occurring as a result of failure of effective integration of ESG risks within the company’s risk management system; • A lack of adequate ESG risk management can expose the company to environmental or occupational acc id ents. • Employment stability, professional growth and opportunities for each employee to realise their full potential and increase their skills through structured training; • Dissemination of skills and knowledge in the territory and in the communities through the development of human capital and the transmission of the skills of those who have been in the company longer to new generations; • F ail u re to meet emp l oy ees’ ex p ec tations and need s for professional development; • Reduced self-esteem and perceived value of employees due to failure to implement adequate training programmes. Commitment to good corporate governance inspired by the highest standards of ethics, integrity and compliance with laws and regulations. This commitment also includes training staff in the ethical principles adopted and action taken to reduce conflicts of interest. Compliance with occupational health and safety regulations and development of a system for identifying and verifying risks in order to protect workers. Building resilient infrastructures and implementing sound policies aimed at managing ESG risks. Adopting a proactive approach that not only protects against potential negative impacts on ecosystems and communities, but also improves the sustainability and resilience of the industry in the face of climate, social, economic and regulatory changes. Investment in the training of the company’s own human resources, essential for improving their personal and professional skills. A rea S u b j ec t Reference GR I S u b j ec t d esc rip tion A ssoc iated imp ac t 23
P R O D U C T S & I NF R A S T R U C T U R E S U P P L Y C H A I N E C L I E NT S PRODUCT QUALITY, SAFETY AND RELIABILITY CUSTOMER SATISFACTION AND CUSTOMER EXPERIENCE SUSTAINABLE AND RESPONSIBLE INNOVATION RESPONSIBLE SUPPLY CHAIN MANAGEMENT GR I 416-2 GR I 418-1, 416-2 GR I 204-1 • Mitigation of environmental and social risks by conforming to the highest standards of product quality and safety through the implementation of strict quality controls and safety procedures during the production process; • Market penetration of products with high quality and performance, including from an environmental and social point of view. • Negative impacts on stakeholders due to products with inadequate quality and performance that fail to meet customer expectations; • Lack of clear and accurate product information, such as safety warnings or instructions for use, and consequent risk of misuse or accidents by consumers. • Customer satisfaction through the implementation of appropriate quality management procedures for the services and products offered; • Protection of the safety and fundamental rights of customers (e.g. privacy and health of customers) and all those with whom the organisation interfaces, through appropriate controls with respect to product quality and safety; • Customer dissatisfaction due to lack of transparency in business practices and the offer of unsuitable services and products; • Loss of customer confidence due to the organisation’s lack of ability to provide products in line with expectations in terms of quality and service. • Increasing the lifespan of products by finding innovative solutions; • Reducing the environmental impact of products through the use of innovative sustainable technologies; • More sustainable use of resources through the development of innovative products (e.g.use of recyclable materials); • Positive contribution to the sector’s technological growth with a view to sustainability and a greater ability to respond to new customer needs; • Negative environmental or social impact from any failure to adopt the most advanced technology available; • Failure to contribute to the technological development of the sector and to the socio-economic progress of the territory and c ommu nity • Identification, prevention and mitigation of negative environmental impacts (e.g. greenhouse gas emissions, energy consumption and responsible selection of materials) and social impacts (e.g. health and safety of workers, protection of human rights, appropriate remuneration policies and combating child labour) along the supply chain, through the adoption of appropriate due diligence procedures and the integration of ESG factors into supplier evaluation, selection and qualification processes; • Protection of human rights and the environment through continuous monitoring of the organisation’s procurement practices; • Promoting a culture of sustainable growth in supply chain enterprises; • Increased negative environmental and social impacts related to the failure to adopt sustainability policies and procedures along the supply chain; • Inability to timely mitigate negative environmental or social events caused by contamination or product quality issues due to lack of transparency and traceab il ity in p roc u rement p rac tic es. Constant commitment to maintaining quality levels of the products and services provided as well as compliance with legal requirements in order to continuously improve the durability, functionality and reliability of its products. Constantly monitoring the quality of products and services and the feedback received from customers to be able to adapt and constantly improve products, services and business practices. Ensuring customer information and support through the establishment of a relationship based on trust, fairness and loyalty. Ability to implement increasingly innovative and sustainable solutions through investment in research and development to improve technical capabilities and implement the use of cutting-edge technologies. Adoption and implementation of responsible value chain management and Human Rights and Environmental Due Diligence policies and procedures to ensure the quality and sustainability of supplies as well as to prevent any potential negative impact on the environment and human rights. A rea S u b j ec t Reference GR I S u b j ec t d esc rip tion A ssoc iated imp ac t 24
As compared with the topics that were material in the previous reporting cycle, the process just described included ‘Transparent Governance and Risk Management’. Unlike the topics that were material in FY 2022, the results of the materiality questionnaire excluded the following topics: ‘Material Sustainability’, ‘Diversity and Inclusion’, and ‘Impact on Community and Territory’. Aware of the relevance of these topics, the Company nevertheless decided to include them also in the current reporting so as to provide stakeholders with as complete and transparent a report as possible. E NV I R O NM E NT ENERGY EFFICIENCY AND COMBATING CLIMATE CHANGE W A S T E MANAGEMENT AND CIRCULAR ECONOMY GR I 302-1, 305-1, 305-2, 305-3 GR I 306-3, 306-4, 306-5 • Contribution to the reduction of environmental impact through the implementation of energy efficiency initiatives, both in the production process and in the offices; • Reduction of atmospheric emissions through continuous efforts to find low-energy solutions within the company’s production processes; • Positive contribution to the fight against climate change through the implementation of a Climate Strategy; • High energy consumption related to significant environmental impacts and due to lack of energy efficiency measures; • High emissions release due to lack of care and of interest in the use of energy from renewable sources; • Inattention to environmental protection due to the failure to define a medium- to long-term environmental and climate strategy for the organisation. • Contribution to the realisation of the circular economy model and reduction of pollution from industrially produced waste; • Health and well-being of local communities through proper and responsible waste management that does not generate pollution in the atmosphere, water or water bodies; • Excessive waste production due to inefficient production processes and/or lack of real recovery and recycling initiatives, contributing to environmental degradation and resource depletion; • Lack of awareness among staff and customers about proper waste management and end-of-life products. Mitigation and prevention of climate change effects through the development of products aiming at efficient material use, reduced energy consumption in production process, a longer life cycle and reduced obsolescence. Efficient recovery and reuse of materials to reduce the production of waste for disposal. Adoption of a circular economy model through the development of systems for the recovery and reuse of waste materials from the production cycle in order to reduce costs for both the company and the customer and reduce pressure on the environment. A rea S u b j ec t Reference GR I S u b j ec t d esc rip tion A ssoc iated imp ac t 25
Economic Responsibility 26
2 0 1 3 2 0 1 4 2 0 1 5 2 0 1 6 2 0 1 7 2 0 1 8 2 0 1 9 2 0 2 0 2 0 2 1 2 0 2 2 2 0 2 3 0 2 0 4 0 6 0 8 0 1 0 0 1 2 0 2 0 1 2 2 0 1 3 2 0 1 4 2 0 1 5 2 0 1 6 2 0 1 7 2 0 1 8 2 0 1 9 2 0 2 0 2 0 2 1 2 0 2 2 0 2 0 4 0 6 0 4 3 4 5 4 8 5 4 6 1 6 3 6 8 7 4 7 6 1 1 0 8 0 1 0 0 1 2 0 1 1 8 4 5 4 8 5 4 6 1 6 3 6 8 7 4 7 6 1 1 0 1 1 2 , 5 1 1 8 M anagem ent p erf orm anc e In the area of sustainability, the ec onom ic val ue generated and d is trib uted is u nd erstood as th e p oint of contact between the economic and social profile of a company and indicates the ability of a company to create wealth and distribute it among its stakeholders. T h e ec onom ic val ue generated b y O sc u l ati is mostl y distributed to the various stakeholders with whom the company comes into contact in the course of its b u siness. R etained ec onom ic val ue, on th e oth er h and , is th e difference between the economic value generated and the economic value distributed, and is the set of financial resources dedicated to the economic growth and asset stability of the company, as well as to the creation of new wealth for the benefit of stakeholders. In 2023, the ec onom ic val ue generated am ounted to € 94,974,475, a decrease of about 14% compared with the previous year. Of this, the ec onom ic val ue retained in th e c omp any w as € 18,893,617. T h e ec onom ic val ue d is trib uted amou nted to € 7 6 , 0 8 0 , 8 5 8 , or ab ou t 8 0 % of the value generated, and has been divided among the following stakeholders: • the major share, amounting to € 64,318,106, was for op erating c os ts , which include expenses incurred for suppliers; • € 6,219,565 was distributed to em p l oy ees , mainl y for wages, salaries, social security and welfare charges and company welfare; • € 5,518,187 were paid to the p ub l ic ad m inis tration for taxes; • F inal l y , € 25,000 was earmarked for ex ternal d onations . A D D E D V A L U E Revenues P roc eed s T otal ec onom ic val ue generated Operating Costs Staff Remuneration Remuneration of lenders P u b l ic A d ministration R emu neration E xt ernal d onations T otal d is trib uted ec onom ic val ue E c onom ic val ue retained 2 0 2 1 100.149.511 23.435 1 0 0 . 1 7 2 . 9 4 6 70.323.101 5.308.487 - 7.285.665 16.008 8 2 . 9 3 3 . 2 5 5 1 7 . 2 3 9 . 6 9 1 2 0 2 2 109.606.781 196.834 1 0 9 . 8 0 3 . 6 1 5 77.280.474 5.686.896 - 6.780.492 25.888 8 9 . 7 7 3 . 7 5 0 2 0 . 0 2 9 . 8 6 5 2 0 2 3 94.737.180 237.295 9 4 . 9 7 4 . 4 7 5 64.318.106 6.219.565 - 5.518.187 25.000 7 6 . 0 8 0 . 8 5 8 1 8 . 8 9 3 . 6 1 7 27
S up p l y c h ain m anagem ent O sc u l ati’ s u p stream s up p l y c h ain is c h arac terised b y h eterogeneity and a w id e range of m aterial s . T h e p rinc ip al su p p l iers O sc u l ati w ork s w ith are m anuf ac turing c om p anies l oc ated in I tal y (63%) and th e res t of E urop e, plus a percentage of distributors in the Far East. The materials supplied range from steel and other metals, to yarn, plastic, glass and many others, according to the products marketed. Contact with suppliers is mainly by means of e-mail, which ensures efficient and fast c ommu nic ations. The table below summarises the geographical distribution of Osculati’s supply chain, by the number of suppliers and the spending budget: NU M B E R O F S U P P L I E R S 2 0 2 1 n. n. n. % of total % of total % of total 2 0 2 2 2 0 2 3 B ased in I tal y Based in the rest of Europe B ased in A meric a B ased in A sia Based in the rest of the world T otal s up p l iers 404 70 1 8 1 0 1 35 6 2 8 371 66 1 8 1 0 1 37 5 9 3 384 69 16 106 33 6 0 8 6 4 % 1 1 % 3 % 1 6 % 6 % 1 0 0 % 6 3 % 1 1 % 3 % 1 7 % 6 % 1 0 0 % 6 3 % 1 1 % 3 % 1 7 % 5 % 1 0 0 % B U D G E T S P E NT O N S U P P L I E R S 2 0 2 1 € € € % of total % of total % of total 2 0 2 2 2 0 2 3 Budget spent on suppliers based in Italy Budget spent on suppliers based in the rest of Europe Budget spent on suppliers based in America Budget spent on suppliers based in Asia Budget spent on suppliers based in the rest of the world T otal c os t 33.618.653 5.051.467 1.772.676 17.962.386 7.128.811 6 5 . 5 3 3 . 9 9 3 32.966.672 6.127.300 2.454.023 23.883.871 7.494.463 7 2 . 9 2 6 . 3 2 9 31.968.215 5.402.787 1.497.825 15.318.832 6.317.395 6 0 . 5 0 5 . 0 5 4 5 1 % 8 % 3 % 2 7 % 1 1 % 1 0 0 % 4 5 % 8 % 3 % 3 3 % 1 0 % 1 0 0 % 5 3 % 9 % 2 % 2 5 % 1 0 % 1 0 0 % 28
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