Sustainability Report 2016 - 9th edition
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Sustainability
Report
2016
9th edition
By Florim Ceramiche s.p.a Financial Department - supervision Communications Department - editorial coordination Our thanks to all contributing staff members. Fiorano Modenese (MO) - ITALY, May 2017
Contents
Letter to Stakeholders 5 Environmental Responsibility 21
Our Sustainability Report 6 Certifications 22
Environmental Management 22
MADE IN FLORIM Energy Management 24
Our History 8 Social Responsibility 27
Our Locations 9 Employees & Corporate Welfare 27
Our Brands 9 Local Community & Culture 30
Our Design Service 10 Product Responsibility 32
Our 2016 11 Quality System 33
GOVERNANCE OUR COMMITMENTS
Code of Ethics 13 The promises we kept 35
Management System Policy 13 The targets we set for ourselves 36
Corporate Bodies 14
Corporate Structure 14 FLORIM USA
Stakeholders 15 Profile and Economic Responsibility 37
Materiality approach 16 Environmental Responsibility 38
Social Responsibility 40
REPORTING Quality System 43
In brief 17 Other Activities 43
Economic Responsibility 18
Comments on the Economic Data 18 GRI International
Sustainability Indicators / SDGs 44
Value Generated 19
FLORIM stone: Marble Statuario and Stone Black 4 2016 Sustainability Report
Letter to stakeholders
Welcome to the ninth edition of our Sustainability Report, a
document which is gaining wider and wider appreciation amongst
those who follow the Florim Group’s performance, for its synthesis of
the company’s many activities in Corporate Social Responsibilities.
During the last year we have once again shown a strong commitment to a business approach
which goes beyond the achievement of economic results alone and involves social projects
intended to last over time, with the secondary benefit of enhancing the image of the Florim name.
I believe this document is a true confirmation that, despite uncontrollable global environmental
uncertainties, there are multiple opportunities to keep the high-quality levels that Florim has
always achieved.
We have made further large investments in our factories in Italy and in the USA and we will continue
to invest in the years to come. We have given the same level of importance to investments in our
image, adding new showrooms to those already established in Milan to give visibility to CEDIT,
the brand which has been rediscovered and relaunched this year with a specific, exclusive
product range.
The “Gallery” and the “Health&Training” Center continue to be hives of activity, the company
continues to hold its doors wide open to young people, with the “Master in Florim” program,
and the “Fondazione Ing. Giovanni Lucchese” continues to engage in important charitable work.
I am very proud to state that all Florim’s employees, in Italy and abroad, are the company’s greatest
resource. So I would like to say a well-deserved “thank you” to all those whose constant hard
work, sense of belonging and mutual cooperation represent a priceless assets that consolidate
over time.
Enjoy the report and thank you,
Claudio Lucchese
2016 Sustainability Report 5
Our Sustainability Report
Methodological Framework and Reporting Perimeter
Writing and distributing its Sustainability Report enables Florim to communicate with its stakeholders with transparency,
describe the results achieved and set our future goals, in an approach based on engagement and continual improvement.
Drawn up annually in accordance with the GRI-G4 Guidelines for Sustainability Reports (the G4 edition of the Global
Reporting Initiative guidelines), the report, issued for the ninth time this year, aims to report on the economic, environmental
and social aspects of the company's operations from a point of view more oriented towards the shared value produced
for its stakeholders.
The reporting process, with "in accordance-core" compliance level, is co-ordinated by Florim’s communications
department and supervised by the Finance Department, with the invaluable assistance of many colleagues, especially
the staff of the management accounting, technical, human resources and administration departments. The data and
information it contains are obtained from the company's IT systems and databases.
The Report refers to all the companies in the Florim group, on the same principle as the Group's consolidated financial
statements. The figures provided in the reporting section refer to our Italian location, while the fourth section contains a brief
Sustainability Report for Florim USA.
As already stated, this Report is intended as an aid to dialogue, and therefore the language used is plain and to the point.
The 2016 Sustainability Report, also published in English, will be distributed as follows:
- provision of a copy to all employees at the Italian and American sites, enclosed with their pay stubs
- publication of the PDF file on the corporate Intranet and the florim.it website
- distribution to member companies of the new “Aziende Modenesi per la RSI” (Modena companies for social
responsibility) association
- mailing to local institutions and the relevant trade union representatives
- distribution to the local press and to the specialist press during exhibitions and site visits
- distribution to key clients and architects
- mailing to the main domestic agencies/authorities/associations involved in issues related to sustainability and the
environment.
Florim produciont plant (Fiorano Modenese - MO)
6 2016 Sustainability Report
CEDIT - Storie Collection | Giorgia Zanellato & Daniele Bortotto.
Named as Best of the Best at the 2017 Red Dot Design Award
2016 Sustainability Report 7
MADE IN FLORIM
Over 50 years of history
Over 1,300 employees worldwide Watch the Florim
institutional video
27 million square meters produced every year
406 million Euro turnover
1,424 tons of CO 2
not emitted in 2015 thanks to the photovoltaic system
It takes more than figures to define a company. Today, passion, innovation, a constant commitment to
improvement and corporate social responsibility are the core values of a new way of doing business:
the MADE IN FLORIM way.
Our History
1962 Giovanni Lucchese pioneers the production of extruded clinker tiles and Floor Gres is founded in the
heart of the Sassuolo production district
1967 Floor Gres is the first Italian manufacturer to produce single-fired white body tiles
1976 The Swimming Pool Division is established within Floor Gres
1981 Floor Gres is one of the first companies in the world to start the manufacture of porcelain stoneware tiles
1984 Claudio Lucchese, son of the founder, takes over the reins at Floor Gres after his father's untimely death
1990 Floor Gres acquires Cerim Ceramiche
1992 Floor Gres and Cerim merge to create Florim
1994 Florim acquires Rex Ceramiche Artistiche
1995 The Project Division, forerunner of today's Florim Solutions, is created
2000 Incorporation of Florim USA, a production and distribution company destined to become a leader on the
American market
2005 Florim acquires Casa dolce casa
2006 The Casamood brand is born
2011 A logistics hub is opened in Brazil
2013 The new multifunctional Florim Gallery is opened and the Florim Logistics area is completed at the
Florim headquarters. The Fondazione Ing. Giovanni Lucchese foundation is established
2014 The first Flagship Store is opened in Moscow
2015 The Milan Flagship Store moves to a location in the very heart of the city. A new Flagship Store opens in
the center of New York
2016 Florim relaunches the historic CEDIT - Ceramiche d’Italia brand (which opens its first flagship space in
Milan) and FLORIM stone, the Group's first brand focusing on the interior design sector
8 2016 Sustainability Report
Our Locations
The map shows the group’s headquarters, showrooms, production plants and logistic hubs.
Florim brand products are available from top international customers and importers.
Site, production plant and logistics hub
Fiorano Modenese (Modena, ITALY)
FLORIM USA Production plant
Mordano (Bologna, ITALY)
Site, production plant and Flagship Store
logistics hub New York, NY (USA)
Clarksville, TN (USA)
Flagship Store
Moscow (RUSSIA)
- Flagship Store
Logistics hub - Spazio CEDIT
Paranà (BRAZIL) Milan (ITALY)
Office
Singapore (SINGAPORE)
Our Brands
Floor Gres is the brand specifically for innovative architectural projects. The Floor Gres product range
meets all the many and varied needs of contemporary architecture in terms of design and technical
capabilities and environmental standards.
Rex is the brand which denotes stylistic excellence, with products inspired by precious natural materials
(wood, marble, and stone); coordinated floor and wall coverings in which the surfaces interact to
generate a new language in home design.
Cerim is the brand that focuses primarily on color and on decoration. Coverings designed on an integral
basis, to make the most of all parts of the home and offer solutions that adapt to the most diverse
interior design contexts.
Casa dolce casa and Casamood is the brand intended for high-end architecture and interior design
and offers attractively blended colours and surfaces drawn from nature for the creation of warm
interiors. A range of matching colours and surfaces that combines porcelain stoneware with other types
of materials. Architectural design effects are blended with the language of interior decoration to create
new types of relationships.
CEDIT - Ceramiche d’Italia embodies the dialogue between art, craftsmanship and technology. The
brand that shapes ceramic matter in the service of creativity, allowing leading names of our time to
express themselves to their full potential. Large designer slabs that renew the concept of architectural
space.
FLORIM stone is the brand that combines performance and practicality with the utmost personalization
of spaces. Large porcelain stoneware slabs at the service of interior design professionals, delivering
creative flexibility with outstanding technical performances and appearance values.
Florim USA is the brand of the American subsidiary; its porcelain stoneware tiles for residential and
commercial use, manufactured in the plant at Clarksville (Tennessee), are tailored to suit the tastes of the
largest possible segment of the North American market.
2016 Sustainability Report 9
Our Design Service
As well as the product itself, Florim offers a unique level of technical support throughout the various design phases.
From the feasibility study to the final installation, Florim Solutions works side by side with the architect, providing
skills and experience whenever the style and performance of porcelain tiles become fundamental to the project.
In the age of speed and the digital revolution, the company has also created an integrated web platform to give its
professional partners unbeatable service. Exclusive events, visibility for projects, free training meetings and specific
competitions are just some of the services offered by Florim4Architects.com.
Expo Azerbajan Pavilion: winner of the Florim4Architects “Project of the Year” competition
10 2016 Sustainability ReportOur 2016
In this section, we focus on the latest news from the Group, covering a wide variety of aspects but all confirming the
importance of Florim's large slabs and once again underlining the centrality of innovation for the company's business.
New brands
In April, Florim chose the Salone Internazionale del Mobile, a major event for the global design
community, for the relaunch of the CEDIT - Ceramiche d’Italia brand. The brand, which has always
had links with leading artists, designers and architects, has achieved a superlative creative standard Learn more
over more than fifty years of experimentation with materials and stylistic research in ceramic design. about CEDIT
CEDIT is returning to the forefront of Italian manufacturing, in partnership with some of contemporary
Italy's top creative names. Its new identity is a fine blend of Craftsmanship and Innovation,
expressed on the large slabs produced by Florim technology. December saw the official opening
- in the heart of Milan - of the first Spazio CEDIT, the tangible expression of an innovative display
concept, created to convey the brand's philosophy to the world.
The brand created to explore new application solutions reaching beyond the conventional construction
concept is called FLORIM stone. Launched at Cersaie - the biggest ceramics industry show - this
brand combines the outstanding performances of porcelain stoneware with the utmost personalisation Learn more
of spaces. The dimensional and functional plus factors of latest-generation large slabs allow stoneware about FLORIM
stone
to be used in a versatile, customized way; not just as a wall and floor covering but also for tops and
furnishings (tables, kitchen worktops and bathroom counters, doors and fireplaces are just some of
the possible applications).
New look
A busy year, partly due to the refurbishment of the Fiorano Modenese headquarters. As well as the new
gatehouse, the façade of the office building was also restyled, bringing it up to date with an all-white look.
An innovative modification at the technological state of the art was made to the raw material shed, with a ventilated
façade of almost 1,900 m² of Magnum Oversize large slabs. The installation reproduces the “Archeologie” collection
(designed by artist Franco Guerzoni for CEDIT) and the lake of Vernago in Italy's Alto Adige region (photo by
Vanni Borghi). A latest-generation project, leading the way in technology, safety and maintenance.
Last but not least, a new barrier was also designed and constructed to separate the Florim property from the
S.Francesco road. It took 3 months to erect a boundary fence of about 340 meters of double-sided porcelain
stoneware slabs 180 cm high and 26.5 cm wide, supported by a steel frame. With a total of 1,122 slabs, the
fence was designed to withstand weather, earthquakes and the forces generated by traffic passing at high speeds.
Installed at different angles, the slabs create attractive effects with light and shade, demonstrating the importance of
sophisticated aesthetics to the company's identity.
New Awards
Florim's large slabs are the featured products in the various awards received, and have been assigned one
of the most important accolades in the design world with an Honourable Mention at the XXIV edition of the
ADI Compasso d’Oro awards.
Just a few months after its launch, the CEDIT brand also received major awards at the global level: the NYCxDESIGN
Award in New York, the Hospitality Design Awards in New York, “100 Best of 2016” at the Archiproducts Design
Awards 2016 and the Best of the Best (April 2017) in the "Design Product" category at the coveted German
Red Dot Design Award.
More recognition came from the Emilia-Romagna Region's 2016 awards for Corporate Social Responsibility projects
run in the local community. A prize in the “Business and Education” category was assigned to the Master in Florim
project, which aims to give young people the skills required for sustainable development.
2016 Sustainability Report 11A year of Florim events
In the age of digital transformation, Florim still believes in the importance of creating opportunities for meeting and
exchanging ideas, and in 2016 more than 12,000 people came to the Florim Gallery (a multi-purpose space of
9,000 m² at the Fiorano headquarters). Events of social usefulness, workshops, community projects and
business occasions: our training, events and hospitality staff were busy on many different fronts.
It was also a major year for off-site events. The Florim Flagship Store in Milan and the just-opened New York
Flagship Store hosted more than 3,200 people at events for architects and designers, supported with important
partnerships with POLI.design and leading publishers.
Florim also chose the world-famous Peggy Guggenheim Collection in Venice as the location for two exclusive
events to highlight the partnership agreement signed with Guggenheim Intrapresæ. A dinner in the wonderful setting
of the museum's panoramic terrace followed speeches by distinguished guests: Ettore Mocchetti, Martino Gamper,
Domitilla Dardi, Giorgia Zanellato, Daniele Bortotto, Franco Guerzoni and Benedetto Fasciana.
The final event of the year was held for the employees, with a “White Christmas Party” evening at a Florim Gallery
decorated for the festive season.
View the Florim event
at the Guggenheim
L’Arte del Design - Florim event at the Peggy Guggenheim Collection (Venice)
12 2016
2016 Sustainability
Sustainability Report
ReportGOVERNANCE
Code of Ethics
The group's governance plays a central role in the responsible development of its business, ensuring ethical,
transparent management of its operations with its stakeholders' interests always in mind.
After approving the Governance Model compliant with the provisions of Italian Legislative Decree 231/2001, the
Florim Board of Directors signed and promoted the corporate Code of Ethics (revised in June 2016), which has
become an integral part of Florim's business and is accepted by every new employee, supplier and agent.
To guarantee the application of and compliance with its contents, a Supervisory Board was established to detect
any breaches of its provisions. All stakeholders can also contact the Supervisory Board, (organismodivigilanza@
florim.it) for further explanations regarding the interpretation and application of the corporate Code of Ethics, as
described on the corporate website.
The following is an extract from the rules of conduct which govern the way we do business:
Our mission
To manufacture ceramic tiles and materials for multiple uses and offer the most appropriate solutions for both
interior design and architecture. To constantly prioritise environmental sustainability, attempting to satisfy the needs
of customers and to create value for shareholders, employees and the local community, in compliance with the
ethical principles and rules of conduct set out in the Code of Ethics.
Our vision
To be at the cutting edge of technical and design innovation in ceramics, by developing materials and production
methods that position us as a constant benchmark for customers, architects and competitors.
Our values
Honesty and Respect: all internal and external relationships must be based on honesty and respect for rules and
dignity of the individual.
Corporate Social Responsibility: corporate social responsibility must be promoted through measures and
practices adopted to support the local environment and community.
Individual Responsibility: everyone must be aware of the worth and consequences of
their own actions.
Quality and Innovation: excellence must be pursued by improving products, processes
and skills to promote corporate success.
Transparency: intentions and positions must be expressed openly and clearly, without
misunderstandings or misrepresentation, to build lasting relationships based on trust both
inside and outside the company.
Courage: a moral strength which enables us to undertake and deal with changes, difficulties
and challenges to benefit from all the opportunities they offer.
Feeling of Belonging: feeling proud to be a part of one big team, made up of the company,
associates, customers and suppliers.
Management System Policy
To achieve greater and greater transparency in its reporting, the company has drawn up guidelines for its quality,
environment, safety, and energy management system. Read more
2016 Sustainability Report 13Corporate Bodies
Florim Ceramiche s.p.a. is a family-run business with fully subscribed, paid-up share capital consisting of 50,000,000
ordinary shares with a face value of 1 Euro each. The capital is 100% owned by the holding company FinFloor s.p.a.,
with registered office in Fiorano Modenese, which is in turn indirectly owned by the Lucchese family through
Fin-Twin s.p.a.
The Board of Directors has 11 members:
CLAUDIO LUCCHESE Chairman
DONATO BRUNI Deputy Chairman ERMES GIUSEPPE FERRARI Managing Director
MARIADELE LUCCHESE Director GIOVANNI GROSSI Managing Director
ANNA LUCCHESE Director OSCAR ISEPPI Managing Director
FRANCESCA LUCCHESE Director DORVAN SAZZI Managing Director
GIOVANNI LUCCHESE Director STEFANO TORRENTI Managing Director
The Board of Directors has a mandate of one year and new elections will coincide with the approval of the financial
statements. The Board of Statutory Auditors is composed of three members whose term of office is three years,
from their appointment on 12/5/2016 until approval of the 2018 financial statements. The financial statements of
Florim s.p.a., and the consolidated financial statements of FinFloor s.p.a. and Fin-Twin s.p.a., are audited and
certified by Deloitte s.p.a.
Corporate Structure
The changes to be noted since the previous financial statements include the incorporation of “Mordano 4 s.r.l.” and
amalgamation by acquisition of Maker s.r.l. in Florim Ceramiche s.p.a.
FIN TWIN s.p.a
Share capital € 540,800
85%
54.2810% MORDANO 4 s.r.l.
Share capital € 100,000
FINFLOOR s.p.a.
Share capital € 10,500,000
100%
FLORIM CERAMICHE s.p.a.
single shareholder company
Share capital € 50,000,000
EDIL FLOOR s.u.r.l. 100%
Share capital € 98,126.81 FLORIM BRASIL Ltda
1% 99%
DISTRIBUIÇÃO DE CERÂMICAS Ltda
Share capital R$ 461,000.00
30% KRONOS 2 CERAMICHE s.p.a.
ISABELLA s.r.l. 10% Share capital € 1,646,799
1% FLORIM RUS 99%
Share capital € 100,000
Share Capital 100,000 Roubles
FI HOLDING, Inc. 100% 96.67%
FLORIM USA, inc. 100% Fondazione Ing. G. Lucchese
Share capital USD 50,000 Share capital USD 51,865,541 Endowment € 60,000
100%
FLORIM SOLUTION Inc.
Share capital USD 845,943 100% FABBRICA delle MATERIE s.r.l.
Share capital € 10,000
FLORIM FAR EAST PTE Ltd. 100%
Share capital S$ 10,000
14 2016 Sustainability ReportStakeholders
Stakeholders are all individuals and groups who may influence or be influenced by a company's operations in terms
of policies, products and working processes: shareholders, employees, customers and consumers, suppliers, local
government, the local community, banks and trade unions.
Employees and Trade Unions
Florim makes the following commitments to its employees:
• to guarantee equal opportunities, fair pay and professional growth
• to reward its human resources on the basis of transparent, meritocratic criteria
• to create safe working environments and processes
• to guarantee transparency and clarity in contract conditions
• to encourage dialogue and internal communications
Customers and Consumers
In dealing with its (retail) customers, Florim is committed to:
• creating a relationship of trust as a stable basis for business
• guaranteeing clarity in contracts and prices
• guaranteeing the reliability of its products and developing customer service
• offering, innovative, safe, environmentally sustainable products
• providing a diversified offering with services with high value added
The overall aim is also to satisfy the expectations and demands of the final consumer
Developers, Architects and Interior Designers
To meet the needs of developers, Florim is committed to:
• offering state-of-the-art solutions in terms of environmentally sustainability technology and design
• establishing and fostering relationships with partner professionals
• providing consulting and technical experience from the project concept through to installation
• supplying turnkey solutions
Local Communities and Local Government
In its relationships with local communities and local institutions, Florim is committed to:
• guaranteeing dialogue, cooperation and transparency
• giving value back to the local communities in the areas where it operates
• continually improving the environmental performances of processes
• researching, developing and using the most sustainable technologies
• making an economic contribution to local sporting and social projects for children and young people
Suppliers
When selecting its suppliers Florim pays close attention to companies’ CSR practices. Florim's relationships with
its suppliers are based on compliance with the values of its code of ethics; otherwise, contracts are automatically
terminated. Florim also guarantees certainty in payment times and compliance with contract terms provided the
goods and services contracted are delivered as agreed.
2016 Sustainability Report 15Materiality Approach
In 2015, the company began an internal analysis process based on the materiality principle, in order to identify the
sustainability issues of relevance both for the Group (including Florim USA) and for all stakeholders.
Materiality is the threshold above which a topic becomes sufficiently important to be included in the
report. In fact, organizations are faced with a large number of topics on which they could report. Relevant topics
and indicators are those considered important for reflecting the organization's economic, environmental
and social impacts, or which influence the decisions of its stakeholder, and which therefore potentially merit
inclusion in the report. In accordance with the GRI – G4 Guidelines, Florim has analyzed and identified "relevant"
topics, which were assessed by the working team which drafted the Sustainability Report, on the basis of discussion
with the main stakeholders.
The findings which emerged were supported by a qualitative survey external to the company's context, examining:
an analysis of the press gallery (more than 650 articles), competitors' Sustainability Reports, the Emas Study of
the Fiorano and Sassuolo Ceramics District and the GRI document – “Sustainability Topics for Sector: What do
Stakeholders want to know?”.
In the chart below, the aspects found to be most important appear in the top right-hand corner and constitute
a strategic priority for the Group. The topics in the bottom left-hand corner, such as biodiversity, prevention
of corruption and absence of discrimination, are less relevant because they are easy for both the organization and
stakeholders to manage and no problems have ever been reported over the years. Similarly, the protection of
human rights is now taken for granted, since Florim complies strictly with all the provisions of the National Employment
Contract.
Importance for
stakeholders
low medium high
Economic
performance
Development of Regulatory
human resources compliance Environment Quality of products
and training and safety offered to customers
Transparency of
financial and other
Green information
products and
services Energy
Investments in Market share Raw materials efficiency
the local community
and social welfare
Water saving
Ethical Direct and indirect
supplier environmental
Indirect economic management impacts
impacts
Sustainable
transport Diversity and equal
management opportunities
Prevention of
Biodiversity corruption
Absence of
discrimination
Protection of
Human Rights
low medium high
Importance for
Florim spa
ENVIRONMENT EMPLOYEES/ASSOCIATES PRODUCT RESPONSIBILITY
COMMUNITY ECONOMIC PERFORMANCE HUMAN RIGHTS
16 2016 Sustainability ReportREPORTING
In brief
Economic Profile
FinFloor consolidated (in thousands of Euro) 2012 2013 2014 2015 2016
Net earnings 315,344 325,853 329,533 374,094 406,759
EBIDTA 59,608 72,986 84,395 98,115 107,186
Operating result 35,717 50,996 58,508 66,255 71,028
Gross cash flow 52,710 68,312 83,274 97,268 109,148
Net profit 26,103 35,732 36,433 43,324 49,347
Net financial indebtedness (127,730) (96,500) (54,524) (27,326) (12,508)
Final inventory 95,514 84,432 90,283 92,795 96,721
Net shareholders' equity 186,905 218,847 276,916 332,721 369,937
Total investments 32,572 48,780 41,584 34,215 53,531
Environmental Profile
2012 2013 2014 2015 2016
Waste produced (t) 30,228 21,170 22,300 30,862 34,423
Recycled third-party waste (t) 4,028 4,190 1,721 2,570 5,627
Total water consumption (m³) / finished product (t) 0.75 0.75 0.78 0.69 0.71
Recycled water percentage 100% 100% 100% 100% 100%
Self-generated energy in relation to consumption 67% 68% 62% 65% 75%
Investments in environmental management (€,000) 13,617 2,493 1,995 465 6,400
Social Profile
2012 2013 2014 2015 2016
Number of employees at 31/12 1,037 992 984 982 987
Total number of training hours 14,690 9,124 9,056 7,176 10,606
Number of training hours on environment and safety 7,572 4,514 4,200 3,008 2,489
Number of workplace injuries 63 62 74 56 43
Environmental and social profile figures refer to Florim Italy; for Florim USA please see the relevant section (from page 37).
2016 Sustainability Report 17Economic Responsibility
Comments on 2016 Economic Data
The Group's 2016 results were again good from every point of view.
Compared to the previous year, turnover increased by 8.7%, leading, thanks to careful management of production
costs, to an EBITDA of Euro 107.1 million, equivalent to 26.3% of turnover and a profit, after tax, of Euro 49.3 million.
The company's financial data also significantly improved, with a net financial position of Euro 12.5 million compared
to Euro 27.3 million at the end of 2015, in spite of record technical investments of Euro 53.5 million and financial
investments of Euro 11 million.
Once again, underlying the results achieved were large investments in latest-generation machinery and technologies,
painstaking research to develop materials with exceptionally high technical and design content, human resources,
and projects for the increasingly direct promotion of Florim's image and quality standard.
Investments
The technical investments made in 2016 amount to Euro 53.5 million, while Euro 11 million was spent on reacquiring
100% ownership of Maker s.r.l., followed by its amalgamation with Florim s.p.a. on 31 December.
The most important industrial projects included the continuation of the work on the Mordano plant, which involved
investments of Euro 26 million for the restructuring of the raw material preparation area and the doubling of production
capacity for traditional porcelain stoneware.
The investments of US$ 18 million at Florim USA were utilised to complete the renewal of the raw material preparation
area and construct a new building for the technical organization.
Finally, about 9 million Euro was invested at Fiorano on various production line modernization projects.
Spazio CEDIT Watch the
inauguration video
A creative hub for design, style and new trends, Milan once again confirms that it is the ideal setting for Florim's
investments, and the opening of the all-new “Spazio CEDIT” confirms the company's determination to strengthen
its bonds with design professionals working in high-end interior design.
The culture of beauty, art, architecture and design are all integral to the genetic make-up of CEDIT – the historic
Italian brand relaunched by Florim in 2016 – and dominate the display areas and the first six ceramic covering
collections styled by famous names on the contemporary creative scene.
On two levels with a total floor area of more than 200 m², the space maintains the same stylistic identity as the
one at Fiorano Modenese, since they are both constructed to an architectural design intended to be replicated
in CEDIT customers' showrooms worldwide.
18 2016 Sustainability ReportEconomic Value Generated and Distributed
The figures for the economic value generated and distributed provide a simple, clear explanation of how Florim has
created wealth and redistributed it to its stakeholders. The table below contains the data from Florim's 2016 financial
statements, approved by the Board of Directors on 30 March and certified by external auditors.
The economic value directly generated is represented by the total earnings for 2016, while the economic value
distributed includes the costs incurred for suppliers and employees, payments to the state (taxes) and the donations
which had positive repercussions for the community to which Florim s.p.a. belongs.
Heading 2014 2015 2016
Revenues 253,125 269,855 302,521
Direct economic value generated 253,125 269,855 302,521
Operating costs 135,735 150,951 168,809
Employee wages and benefits 56,985 58,149 62,418
Payments to providers of capital 7,413 6,399 11,903
Payments to government 15,738 13,162 15,382
Community investments 221 212 240
Economic value distributed 216,092 228,873 258,752
Economic value retained 37,033 40,982 43,769
The data in the table are in thousands of Euro and refer to the consolidated financial statements of the Italian companies only.
Key
Revenues: net sales plus revenues from financial investments and sale of assets
Operating Costs: payments to suppliers, non-strategic investments, royalties, payment facilitations
Employee wages and benefits: employee wages and benefits per employees (current payments)
Payments to providers of capital: all payments to the organization's providers of capital
Payments to government: gross taxes and duties
Community investments: voluntary donations and investments in the community
Economic value retained: calculated as economic value generated less economic value distributed
KBIS (USA) - detail of the stand created with “I Classici di Rex”
2016 Sustainability Report 19Casa dolce casa – Argille 2.0 Collection 20 2016 Sustainability Report
Environmental Responsibility
Effective environmental policy management, energy saving and emissions reduction are amongst Florim's strategic
sustainability objectives.
Our "green" projects in figures
2 highly-regarded
16,000 m² process certifications: 4 latest-generation
of photovoltaic panels covering ISO 14001 (ENVIRONMENT) industrial kilns installed in
an area of 30,000 m² and ISO 50001 (ENERGY) the last 3 years
CO2 1 laboratory for the development of
8,462 tons contemporary design projects with a 2 departments
of CO2 NOT emitted specific focus on the materials' green (marketing and communications)
content engaged on digitizing
advertising tools
75% is the percentage of the
2 cogeneration plants electricity consumed which is 100% is the percentage of
to increase energy saving produced in-house wastewater recycled
and efficiency
84,987.3 MWh 4 different types of
100%
is the amount of electricity the environmental product
company succeeded in producing certification is the percentage recycling of
in-house during 2016 industrial greenware waste in the
production process
2016 Sustainability Report 21Certifications
System and process certifications:
UNI EN ISO 14001
TÜV has awarded Florim the highly-regarded UNI EN ISO 14001 voluntary certification, which confirms its compliance
with a series of internally certified procedures intended to improve the internal environmental management
system. The decision to seek this certification springs from the desire to reconcile quality with efficiency and
productivity while protecting the environment and community in which the company operates.
UNI EN ISO 50001
Thanks to a careful energy management policy and aided by the latest investments in the production area also
intended to improve energy efficiency, Florim was the world's first ceramics manufacturer to obtain ISO 50001
certification of its Energy Management System.
In addition to its environmental certifications, Florim has also been awarded prestigious AEO (Authorized
Economic Operator) status.
Further to a lengthy and demanding audit process by the Customs Authorities, in 2016 Florim
was awarded AEO certification, the first company in the Province of Modena to receive this
major form of approval. Authorised Economic Operator status guarantees the company's absolute
compliance with customs and security requirements in its foreign trade.
Environmental Management
Florim's operations have always been oriented towards optimization of impact on the local community and
environment. Thanks to the work of its research laboratories, the support of all staff and the recent investment
plans, tangible results have been achieved. The data provided below reveal that in spite of an increase in production
of 8% compared to the previous year, consumption remains low.
The company's commitment to environmental protection is all-inclusive, and also comprises a focus on the district
within which it operates. One example is the total removal of all asbestos cement from the Fiorano Modenese plant
and the creation of the new recycling station, opened in 2015 and donated to the Local Authority as a public service.
As in previous years, during 2016 Florim was not fined for any breaches of environmental regulations or laws.
Waste Management
Florim recycles and optimises, within the production process, all greenware scraps, dust residues from
filters and sludge from the process and rectification wastewater treatment system. The waste produced
is detailed in the table; the significant differences between years are due mainly to the major demolition and
subsequent reconstruction works undertaken at the Italian plants.
Waste 2012 2013 2014 2015 2016
Total waste produced (t) 30,228 21,170 22,300 30,862 34,423
Non-dangerous recyclable waste (such as paper and 98.9 98.2 98.5 99.1 98.9
cardboard, fired scraps, plastic, glass and wood) (%)
Non-dangerous disposed-of waste 0.2 0.4 0.2 0.2 0.2
(such as the waste picked up by the motor sweepers) (%)
Dangerous recyclable waste (such as spent oil, batteries and 0.0 0.1 0.1 0.1 0.0
monitors) (%)
Dangerous disposed-of waste (such as spent lime) (%) 0.1 1.3 1.2 0.7 0.9
Third-party waste recycled within the production process (t) (%) 4,028 4,190 1,721 2,570 5,627
* Besides recycling greenware waste from its own production cycle (not included in the table because the amount cannot be calculated),
Florim also recycles third party waste.
22 2016 Sustainability ReportWater Resources
No environmental impact of wastewater discharges is specified since all the water from the production
cycle is completely reused (100%). All other effluents comply with legal requirements.
WATER USE 0.8 0.8 0.8 0.7 0.7
Total water consumption (m³) / finished product (t)
2012 2013 2014 2015 2016
The figure states the total cubic meters of water used per ton of finished product. The water used in the Fiorano
production process is drawn from private, company-owned wells, with water from the public main only used
for non-industrial purposes. The Mordano plant is supplied by an industrial water main. Water use is measured
by means of meter readings. Four highly innovative dry rectifying plants have gone into production at
Mordano since 2015, enabling the company to eliminate the physical/chemical treatment of the water used in
the rectification process.
Raw Materials and Biodiversity
As the materiality assessment states, Florim has no significant impacts on the biodiversity of its local area
since the company is located inside the Fiorano Modenese ceramics manufacturing district, at least 5 Km from
the nearest nature reserve at Salse di Nirano. Florim takes special care over the choice of the raw materials
used for its tile body mixes, of which it is required to provide documentation guaranteeing compliance with the
European Directives protecting wild birds (EU Dir. 79/409/EEC) and habitats (EU Dir. 92/43/EEC) and the United
Nations Convention on the protection of biodiversity. It has also introduced a software program - used at the
3 production plants (Italy and the USA) - for the management of data on the origin of raw materials, such
as quarry location, distance from the factory, recycled content declaration, technical, safety and radioactive
content data sheets and the expiry of the quarrying permit issued by the government.
Packaging and Coverings
All packaging used for Florim materials is made from recycled paper and parts of the coverings used to
protect pallets of finished products consist of recycled plastic. What's more, all the packaging used (boxes,
cardboard, shrink wraps, pallets, etc.) can be completely recycled by the end user. The latest investments
made include new eco-friendly packaging machines, increasing the number of these machines installed
to 15. These plants completely eliminate waste due to leftover inventory, saving significant amounts of
cardboard.
2016 Sustainability Report 23Energy Management
There is no disputing that large amounts of energy are required to power the production processes of ceramic tile
plants, with consequent direct and indirect impacts on the local area and the environment.
The main indicator used to measure plants' energy performance is the mean specific total energy consumption
(TEJ) measured in GJ/t of product transferred to stock. As the table below shows, this figure is obtained by adding
together heat consumption (NGJ) and electricity used (EEJ).
Parameter – Definition Unit of 2012 2013 2014 2015 2016
measurement
NGJ Mean specific natural gas consumption GJ/t 5.57 5.71 5.76 5.78 5.98
in relation to the unit of weight of finished
product transferred to stock
EEJ Mean specific electricity consumption in GJ/t 1.11 1.08 1.11 1.08 1.07
relation to the unit of weight of product
transferred to stock
TEJ Mean total specific energy consumption
in relation to the unit of weight of product GJ/t 6.68 6.79 6.86 6.85 7.05
transferred to stock
% Self-generated electricity as a proportion of
% 67 68 62 65 75
consumption
With two cogeneration plants (for the combined in-house production of heat and electricity) and 16,000 m² of
photovoltaic panels, the company certainly sets a new benchmark for the entire ceramic tile industry. 2016 saw
the replacement of the Fiorano turbine set (the main component of the cogeneration plant) while the one in Mordano
was kept in operation 24/7, factors which led to a 10% increase in in-house electricity production in relation
to consumption. To provide a clearer idea of the scale of the achievement, the amount of electricity the company
generated in-house in 2016 (84,987.3 MWh) would cover the average annual consumption of about 37,000
households. (With consumption per household of 2.29 MWh - data from the latest ISTAT survey in 2012– calculated
on the Italian average).
Photovoltaic Plant
The 16,000 square meter photovoltaic plant received recognition from GSE (Energy Management Services)
as one of the most innovative installations of its type, and from its commissioning (October 2011) up to December
2016 it produced the following results:
kWp kWh produced kg of CO2 not emitted
2,700.21 15,937,250 8,462,680
Good Practice
The head office organizations are also optimizing paper and energy consumption. In addition to issuing and
distributing the energy saving handbook for its offices, the company is also trying to maximize savings on
the raw material used, and specifically the use of paper. Internally, the company only purchases reams of paper
which carry environmental certification and the paper used in offices is collected separately for proper disposal.
Externally, the company distributes a system of merchandising products made mainly from recycled paper and
encourages the gradual digitization of its marketing tools: as well as publishing all its catalogues in digital format
on its Internet sites, Florim offers its distributor companies an innovative digital touch screen tool with the pdf
versions of the catalogues and other tools for the final consumer.
In 2016 Florim decided to adopt a new payslip distribution procedure, introducing an online processing
system. As well as providing employees with new functions and greater operating flexibility, thanks to this
system the company no longer prints out the monthly payslips, saving paper, ink and energy. The
scheme, initially involving all office workers, has the ambitious target of also including the staff of the Fiorano
and Mordano plants.
24 2016 Sustainability ReportTransport
The materiality study reveals that transport is a significant factor for both stakeholders and Florim itself. The
company is not able to measure the impact of transportation of finished product on the local area since all
shipments are ex-works. However Florim, which has been introducing electric vehicles to replace its oldest,
most obsolete unleaded petrol forklifts for years now, has further optimized the handling of materials thanks
to the new, highly-automated logistics hub created at the via Canaletto location. In 2016 about 53% of the
vehicles used on the company's premises were electric, with no direct greenhouse gas emissions.
Atmospheric Emissions
The industrial facility emits greenhouse gases, basically CO2, from the following main sources:
• combustion, from the burning of fossil fuels (such as natural gas)
• processes, from the minerals in the raw materials, any organic matter in the clays used, and any organic
additives in tile body mixes.
In order to comply with Directive 2003/87/EC (ETS - Emission Trading Scheme), Florim has been reporting and
certifying its CO2 emissions since 2013.
CO2 emissions 2013 2014 2015 2016
CO2 emissions (t) 102,728 103,462 111,862 132,960
CO2 emissions (t) / Finished product (t) 0.33 0.33 0.33 0.35
Emissions from the production cycle 2013 2014 2015 2016
Particulate material (g/m² finished product) 2.23 1.30 0.98 1.18
Lead (g/m² finished product) 0.00 0.00 0.00 0.00
Fluorine (g/m² finished product) 0.14 0.18 0.13 0.12
The increase in CO2 is due mainly to the large increase in the square meters produced (+ 8%) and the 24/7 use
of the cogeneration plant. However, it should be noted that the cogeneration plant provided a 10% increase
in in-house electricity generation, with lower CO2 emissions than electricity purchased from the grid, produced
mainly using fossil fuels (source: ISPRA, Fattori di emissione atmosferica di CO2 e sviluppo delle fonti rinnovabili
nel settore elettrico, Rapporti, [Atmospheric CO2 Emission Factors and Development of Renewables in the
Electricity Sector, Reports] 212/2015).
The ratio between CO2 emissions and tons of finished product produced increased because in 2016 the sale
of spray-dried material to other companies rose compared to the previous year (emissions from this phase are
included in the emissions count but there is no corresponding output of finished product).
In a change from previous years, the new GRI-G4 guidelines also require reporting of nitrogen oxide and
sulphur oxide emissions. Nitrogen oxide (NOx) emissions are within the limits permitted under the integrated
environmental authorisation. Sulphur oxide (SOx) emissions are not reported here since this figure is not required
by the IEA.
2016 Sustainability Report 25CEDIT – Creative Composition 26 2016 Sustainability Report
Social Responsibility
Employees & Corporate welfare
Its employees are the heart and soul of Florim; they provide its character and its DNA. Since 2009, when the current
major economic crisis began, Florim has undertaken a number of income support programs for its workforce. Below
we summarise some of the ongoing programmes and others run in 2016.
• Ending of the Income Support Program for the Mordano plant
• Agreement with Sassuolo Hospital under which Florim employees and their family members enjoy discounts
and shorter waiting times for specialist examinations and outpatient diagnostic tests performed on a private basis
• Special agreements with local health facilities
• Tax advice at special rates
• Special terms for banking services, with financial consultants on-site
• Discounts on the purchase of Florim products for employees' homes
• Free entry to the Peggy Guggenheim Collection in Venice for employees and concessions for family members
• Free provision of water and mineral salts in the plants during the summer
• Distribution of fuel vouchers to employees for the Christmas holidays.
Workforce Composition
Manager Executive Office worker
2013 2014 2015 2016 2013 2014 2015 2016 2013 2014 2015 2016
Women 2 3 3 3 3 1 1 1 137 142 133 149
Men 18 21 20 18 21 24 25 28 127 132 128 132
Total 20 24 23 21 24 25 26 29 264 274 261 281
Office ancillary Blue-collar worker Total
2013 2014 2015 2016 2013 2014 2015 2016 2013 2014 2015 2016
Women 18 16 25 19 226 219 212 196 385 381 375 368
Men 64 68 79 64 376 358 356 377 607 603 607 619
Total 82 84 104 83 602 577 568 573 992 984 982 987
In 2016 the workforce included 27 people with disabilities, 6 women and 21 men.
Bearing in mind the job descriptions arising from the specific industrial sector, the breakdown between men
and women is in line with the industry average. Male office workers and executives earn an average of 10%
more than women for jobs of equal responsibility. Among blue-collar workers, the difference is 7%. The company
had a total of 29 foreign employees: 24 at Fiorano and 5 at Mordano.
Summer Play Schemes and Crèches
In 2016 the summer play schemes for the children of employees at Fiorano and Mordano were continued for
the fifth year in succession.
Seven different centers, across the area between Modena and Bologna, hosted 85 children (twice the number
of the previous year); the company paid the fee for two weeks' attendance.
What's more, since 2013 the company has negotiated special terms with local crèches, which now offer a
number of places for employees’ children at a reduced fee.
2016 Sustainability Report 27Human Resources Management Policies
In July 2015, on renewal of the in-house supplement to the national employment contract, the Management
introduced a new phase in its relations with the Trade Unions, with the aim of continuing and improving the
good relationships enjoyed for decades.
The new company contract, applied for all employees at the Fiorano headquarters, includes more facilitations
for part-time working the willingness to allow flexitime where feasible and the commitment to invest in
staff training in order to generate full benefits from intellectual capital. The company and the trades
unions agreed on a plan to improve efficiency, fundamental for maintaining the current level of competitiveness,
by establishing improvement in Production Efficiency and EBITDA as criteria for the payment of the new
Performance Bonus. The individual Attendance Score is considered together with these parameters. The 2016
Performance Bonus, in its first year of application, was 20% higher than that paid in 2015. In addition, in
response to employees' requests, the Company increased the number of approved canteens, extending
the choice available, and also introduced weekly laundering of work clothing for all production workers.
With regard to applications for severance pay advances, the Company confirms its commitment to continuing
the policy implemented so far.
Training
Florim believes that in-house training plays a key role in the company’s development, and provides a tool for
stimulating and fulfilling the potential of its human resources.
More than 10,600 training hours were provided in 2016 to 847 people, with an average of more than 11 hours
of training per employee.
New projects included a 6-month on-line English language course, which attracted a large number of participants,
and two highly structured training courses for the sales division and the communication department. A retraining
program for workers at the Mordano plant was also completed; it comprised 4 technical courses attended by
31 people, for an average of 13 hours per person. Another new entry for 2016 was an innovative procedure for
acquiring information about training needs, using an on-line questionnaire available to all employees as well
as line managers' specific recommendations. The Master in Florim project is discussed in depth in the
specific section.
Health and Safety
Florim was the first Italian ceramics manufacturer to receive BS OHSAS 18001 (Occupational Health & Safety
Assessment Series) certification from TÜV; this international standard certifies the implementation of an internal
management system oriented towards occupational health and safety.
This major award confirms the company's constant commitment to the well-being of its employees. Every year,
in addition to engineering inspections and machinery maintenance, a number of hours of safety training
are organised to raise awareness among workers and supervisors. Specifically, in 2016, 2,849 hours were
dedicated to safety training and a significant reduction in injury rates was recorded.
Moreover, BLSD refresher courses are continuously held for the team of Florim employees trained in first-aid
operations and the use of the defibrillators available on site.
2012 2013 2014 2015 2016
Number of workplace injuries 63 62 74 56 43
28 2016 Sustainability ReportMaster in Florim Watch the video
of the 4th edition
The Master in Florim, organized for the fourth time in 2016, is a vocational training project which aims to bridge
the gap between education (high school or university) and the world of work. The program, which is one of the
company's Social Responsibility projects, sets out to help young people to get to know the company through a
well structured work experience plan. It offers a distinctively northern European approach, with a method which
alternates classroom teaching with internships in the various areas of the company. Participants, new
university or high school graduates specialising in various subjects, all below 30 years of age, are therefore able to
gain hands-on experience of all Florim departments, from R&D to the production process and product distribution,
for an all-inclusive vision. The MASTER course's ambitious aim is to match the individual participants'
talents with the company's real needs. At the end of each edition, the company hires all or some of the
selected candidates, enabling it to acquire new skills, new experiences and new energy.
Master 4.0 in figures
20 young people taking part
6 months of training
13 external lecturers
264 hours of classroom teaching
392 hours of practical training
4 company visits (Ferrari, Tetrapak, Cremonini and Ducati)
50 days of work experience on rotation, involving 15 departments
1 month of project work
The project's prestige is enhanced by its economic context, since Florim pays the young participants for the
entire period, and its aim is to deal with the thorny problem of youth unemployment. The Master has won approval
from various faculties at major Italian universities.
The project was also a winner in the Emilia-Romagna Region's 2016 awards for Corporate Social Responsibility
projects run in the local community. A prize in the “Business and Education” category was assigned to the Master
project, which aims to give young people the skills required for sustainable development.
2016 Sustainability Report 29Local Community & Culture
This chapter describes a number of programs Florim runs for the local community in the area where it originated
and where it has been working for more than 50 years.
Fondazione Ing. Giovanni Lucchese
More than thirty years after the untimely death of Giovanni Lucchese – founder of what was then Floor Gres, currently
Florim – in 2013 his family established a Foundation in his name, which since then has funded organizations
and associations that support families in need in the ceramics district. The Foundation also supports
a variety of projects such as the summer play scheme for employees' children, the Premio Lucchese and the
Florim Health&Training Center, described in more detail below.
The main projects undertaken in 2016 include the funding of the purchase of 10 defibrillators for the Municipality
of Fiorano and the contributions made to the purchase of paediatric ambulances for the local area and to
support the Parish charitable organizations and social services in the district.
Aziende modenesi per la RSI
“Aziende Modenesi per la RSI”, an independent, open, inclusive association of companies in the
Modena area which believe in the principles and values of Corporate Social Responsibility, was
established by public deed on 30 September 2014, with Florim as a founding member.
Florim hosts the association's member companies every year to discuss the various topics proposed.
Premio Lucchese
The Premio Lucchese, presented for the twenty-ninth time in 2016, was established in memory
of Giovanni Lucchese, and consists of scholarships awarded to students at the “Alessandro
Volta” Technical High School in Sassuolo who graduate with full marks. The award ceremony, held Watch the
every year at the Florim Gallery in association with Società Ceramica Italiana of Bologna, includes Premio
a talk given by a leading personality on a topic of current interest to an audience of eager young Lucchese video
listeners.
Politecnico di Milano
Since the 2005/2006 academic year Florim has been a partner sponsor of a large number
of Postgraduate Courses run by POLI.Design, the Politecnico di Milano consortium which
organizes its Master Degree courses.
Also in association with POLI.Design, since 2012 Florim's Milan showroom has hosted several
design events for architects and designers of every nationality.
Intrapresæ Collezione Guggenheim
As befits a company that combines the values of its local community and historic and artistic
heritage with a flair for research and innovation, Florim recently launched a partnership with the
Peggy Guggenheim Collection. Since its foundation, Florim has always had a unique ability to
incorporate the true cultural significance of its industry in its business model, and by this project
once again confirms its commitment to promoting art by supporting a collection of extraordinary
beauty.
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