Sustainability Report 2020 - Cogne Acciai Speciali
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Sustainability Report 2020
2
CONTENTS
LETTER TO THE STAKEHOLDERS 4
PROUD OF OUR RESULTS - 2020 Highlights 6
COGNE AND THE SUSTAINABLE DEVELOPMENT GOALS 8
COGNE AND COVID-19 10
IMPROVE, RAISE AWARENESS, INVOLVE:
OUR COMMITMENT TO RESPONSIBLE PRODUCTION
AND CONSUMPTION 13
Goal 12: Responsible consumption and production 14
Steel, our primary raw material 16
Responsible supply chain 17
Commitment to innovation: from raw material to customer 18
Goal 13 - Climate Action 22
Environmental performance and natural resource management 22
Energy and water consumption 24
Assessing the environmental impacts 29
PEOPLE, TERRITORY, COMMUNITY:
OUR ROOTS AND OUR FUTURE 31
Goal 8: Decent work and economic growth 32
Responsible economic growth 32
People at the centre: worker development, training and safety 36
Health and safety first 39
Involving local communities 42
Goal 4: Quality education 42
Development and training for people: performance management 43
Cogne industrial school 44
NOTE ON METHODOLOGY 47
Governance and corporate information 51
DATA AND PERFORMANCE INDICATORS 57
PERIMETER OF MATERIAL ISSUES 77
GRI STANDARD CORRESPONDENCE TABLE 78
AUDIT REPORT 89
3
LETTER TO THE STAKEHOLDERS
2020 has been a difficult, painful, complicated and challenging year. The
rapid spread of the COVID-19 virus and the measures taken to contain
it triggered an unprecedented global crisis in terms of the speed and
severity with which it affected the economy and our daily lives.
Recovering from this crisis will take an extended period of time while
it will require accelerate change in many areas. However, it is currently
difficult to predict the timing of the recovery in terms of demand and the
structural changes that our sector will have to face.
In the next two years, the sustainability of our activities will be tested as it
never has before. Our sales and operations have been profoundly affect-
ed, while the extremely competitive environment in which we operate
is changing in a way that is difficult to anticipate currently. In the long
term, the world will resume its path of economic growth and the need
for a reliable supply of steel will be essential for its recovery. We need to
be prepared for tomorrow’s competitive market, but we also need to act
quickly and decisively in the face of today’s challenges.
4
In 2020, we placed our focus on four main lines of action:
· we took care of our people, implementing all the measures required to pro-
tect them and to ensure a safe working environment that would allow for a
gradual return to normal production, as early as the end of the year;
· we acted promptly to ensure the financial stability of the company, reducing
expenses, sizing operations appropriately and increasing our focus on manag-
ing our working capital. In addition, investments had to be remodelled, giving
priority to those that were focused on health, safety, environmental protection
and the company’s long-term strategic positioning;
· we helped the Valle D’Aosta community, where the daily lives of families were
profoundly affected, by providing health workers with equipment and funds to
ensure that the affected persons would be able to access adequate support;
· by drawing on the skills, expertise and ingenuity of our people, we fulfilled our
commitments and strengthened our relationships with customers and suppli-
ers, both of whom are essential to our future and we will accompany them as
we move forward.
The events in 2020 hit us suddenly, but the solid platform we had built over the years
allowed us to face this crisis with strength and prepare for recovery.
We are already investing in digital technologies to continue to increase the efficiency
of our operations and provide customers with even better service. These investments
are helping to reduce costs and improve our efficiency. In terms of climate action, our
intention is to participate in the steel industry’s response to reducing CO2 emissions.
During 2020, our major investments targeted toward reducing emissions were highly
successful. Air quality was improved and new major contracts for the procurement of
energy from renewable sources enabled us to increase the proportion of green energy
we use.
In October, due to the restrictions caused by the pandemic, we inaugurated the Cogne
Academy - Industrial School in a reduced ceremony. We wanted to reflect on the im-
portance of providing the correct training paths for technical education as well and
providing adequate opportunities to our young people. In the face of this new crisis,
we have changed as have many aspects of our industry. We are therefore taking all the
necessary steps to strengthen our leading position in view of the recovery.
Finally, I would like to give special thanks to our employees, who have shown resilience
to adversity and the ability to act quickly to first of all ensure everyone’s safety and
then to ensure safety for all. I am proud of them. I would also like to thank our custom-
ers, suppliers and investors who have supported us, as well as the local, regional and
national authorities we worked with in the past and will continue to work with in the
future.
Dott. Ing. Giuseppe Marzorati
PRESIDENT
COGNE ACCIAI SPECIALI
5
PROUD
OF OUR RESULTS
2020 Highlights
Reducing
accidents
Despite the difficulties that were present in 2020, we con-
tinued to pursue our ‘zero injuries’ objective. The number
of accidents fell by 39% from 23 in 2019 to 14 in 2020.
The accident frequency index decreased by 30% and the
accident severity index decreased by 8% compared to
2019
Reducing
CO2 emissions
By using green and km zero energy we were able to avoid
emitting 13,665 tonnes of CO2.
Our contribution to the Aosta district heating network
saved 3,511 tonnes of CO2 emissions.
Overall, Cogne’s commitment has resulted in lower emis-
sions by over 17,100 tonnes of CO2, which are the equiva-
lent of the carbon dioxide emissions of an average diesel
van travelling the circumference of the earth (69,513,296
km) 1,735 times, calculated according to AIB and DEFRA
emissions factors, or the equivalent of the carbon diox-
ide absorbed by 1,400 soccer fields, according to publicly
available conversion factors.
7
COGNE and the sustainable
development goals
This report contains the results of our We wanted to identify a specific number of ob-
pursuit of the Sustainable Develop- jectives on which to focus our efforts and direct
ment Goals (SDGs) and the results of our resources towards. This analysis was followed
our commitment to achieving specific by an internal sharing activity, carried out during
targets. 2020, which aimed to make as many stakeholders
as possible aware of the importance of the sus-
At Cogne we are committed to ensur- tainability objectives, helping the company to pri-
ing the economic, social and environ- oritise them. Having completed the analysis and
mental sustainability of our activities. engagement phase, we identified the 4 sustaina-
Valuing people, the territory and the ble development goals to be given priority:
communities in which we operate,
while minimising the environmental • Responsible consumption and production
impact of our activities, constitute the (goal 12);
basis according to which we operate.
• Climate Action (goal 13);
This approach has enabled us to out-
line a programme of coordinated ini- • Decent work and economic growth (goal 8);
tiatives to promote the integration of • Quality Education (goal 4).
sustainability across all areas.
The objectives we identified were chosen with the
To further strengthen our commit- aim of promoting a balance of both social (goals 8
ment to sustainability and steer the and 4) and environmental (goals 12 and 13) objec-
activities related to this area, in 2019, tives that could be pursued and integrated with
we made a decision to integrate the our activities and that could be applicable across
Sustainable Development Goals into our entire value chain. The applicable sustainable
our strategic objectives, in order to development goals identified in the first phase
emphasise how strongly this pursuit are our primary goals, i.e. the four goals we have
is related to our business objectives. committed to at a strategic level, that can be pur-
For us, sustainability and competi- sued directly or indirectly.
tiveness are elements of the same
mechanism that generates growth There are also indirect objectives that we can in-
and prosperity. fluence through our activities and the communi-
ties in which we operate. We believe that we can
During 2020, we continued this activi- have an impact in their implementation, but do
ty and opted to delve deeper into de- not necessarily consider them to be a strategic
fining the targets associated with the priority. For example, our choice to use electric-
material themes. ity from renewable sources has a positive impact
8
on the realisation of goal 7 (Affordable and Clean
Energy), but this choice has a greater impact on
goals 12 and 13.
We will explain how we pursue these goals in the
dedicated chapters to follow.
9
Cogne and COVID-19
At the current time, our responsibili- Operational continuity
ty is to put in place all the necessary
measures to prevent and defend the We adapted to the measures implemented by the
health of our people, defend the con- government and the effects of this unprecedent-
tinuity and long-term sustainability ed pandemic. At the same time, we are commit-
of our company and do all we can to ted to fulfilling our obligations towards our cus-
support our communities. tomers, suppliers and partners as much as we can
under these exceptionally difficult circumstances.
The production site at Aosta was affected by the
numerous government restrictions imposed in the
The safety of our people period from March to May 2020 to contain the
To ensure the safety of our people, we spread of the virus. The shipments never stopped,
have taken the following measures: but we did incur delays due to logistical complica-
tions. Pursuant to the agreement signed with the
• Remote working has been imple- trade unions, production activity resumed within
mented for all staff, where possible; the supply chains indicated by the relevant De-
cree of the Presidency of the Council of Ministers
• Business trips have been suspend-
issued in April 2020. Production thus fell into step
ed;
with the shipping service that had never ceased
• All meetings took place remotely; to operate, thus ensuring the continuity of supply
to strategic sectors, made possible by our ded-
• Hygiene practices and behaviour to icated warehouses. We were able to return to
avoid contagion risks are regularly normal operating conditions by adopting a new
communicated to all our employees organisational system that uses best practices to
and associates. implement the provisions of the Protocol signed
by the Ministry and the trade unions so as to op-
erate under the highest possible Covid-19 safety
Support for our communities standards for workers.
We rapidly developed and imple-
mented a series of actions and activi-
ties to support the communities in our In 2020, the company spent over €430,000 on
areas of operation by supporting local COVID-19 emergency management measures
authorities and hospitals with basic covering materials and activities required for im-
equipment. plementation of the measures to counter the
10dissemination of the pandemic. More than 45%
of the expenditure was for sanitation materials
and equipment, while 20% was related to work
on company structures, such as the installation
of partition barriers, temporary structures such as
gazebos, etc. For further information, please refer
to the Annual Report approved by the Sharehold-
ers’ Meeting.
1112
IMPROVE,
RAISE AWARENESS,
INVOLVE:
Our commitment
to responsible production
and consumption
13IMPROVE, RAISE AWARENESS, INVOLVE:
Our commitment to responsible production and consumption
GOAL 12: report on the indicators relating to energy and
RESPONSIBLE water consumption, atmospheric emissions and
CONSUMPTION AND waste management.
PRODUCTION Cogne has always placed environmental protec-
tion and the rational use of natural resources at
the centre of its attention, in terms of the nature of
For several years now, Cogne has its business and the orientation of its own vision.
been pursuing a path of innovation Environmental protection, the responsible use of
through research and development, resources, including water, energy efficiency and
aimed at the continuous improvement the reduction of energy consumption, the use of
and optimisation of all our processes energy from renewable sources and the proper
and products, in terms of sustainabili- management of the waste cycle are essential ele-
ty, quality, safety and excellence. ments that guide the company’s strategic choices.
We strive every day to conceptualise As part of our efforts to implement our environ-
the best products for our customers mental vision, the company has developed man-
and the environment, choosing raw agement systems certified to ISO 14001 and
materials with respect for the environ- ISO 9001 standards. In addition to raising staff
ment and the people who work with awareness through specific training, the compa-
us, with the aim of creating the prod- ny employs performance monitoring tools ex-
uct our customers want and delivering tensively, including environmental aspect/impact
it in the manner and time required. assessment, analytical checks, internal audits and
We are committed to implementing legislative compliance checks, thus monitoring
sustainable production models by performance in terms of sustainability and envi-
using natural resources efficiently, re- ronmental protection as well.
ducing waste, and contributing to re-
sponsible waste management, recov-
ery and reuse.
To respond to all these challenges,
Cogne has decided to set goal 12 as
one of its primary objectives, and this
chapter describes Cogne’s approach
to raw material procurement with a
1415
IMPROVE, RAISE AWARENESS, INVOLVE:
Our commitment to responsible production and consumption
STEEL, OUR PRIMARY
RAW MATERIAL
The main raw material used in our
products is steel. As a 100% recycla-
ble resource, steel has a crucial role
to play in achieving a circular econo-
my. Steel can be recycled indefinitely
without losing any of its properties
and can help save iron, energy, coal
and other materials, while producing
fewer CO2 emissions and prevent-
ing a useful material from ending up
in landfill as waste. Cogne purchases
the steel it uses in its products from
Italian suppliers certified in accord-
ance with EU Regulation 333/2011.
The relationships with these suppliers
are consolidated by years of collabo-
ration and are secure in terms of the
quality of the raw material they supply
as well as environmental protection.
At the same time, Cogne researches
and evaluates new potential suppliers
in order to ensure the stability of its
supplies.
Cogne’s purchases are made directly
through scrap suppliers, who are re-
quired to supply the raw material ac-
cording to specific standards, to main-
tain the consistency of our products
over time. Scrap purchased in Italy is
loaded onto vehicles, and each load is
checked at the entrance to the Aosta
site for compliance with the require-
16ments governing the radiometric monitoring of Management Systems
scrap metal. Prior to use, the scrap is checked by
dedicated personnel and the general condition In line with the Quality, Health, Envi-
of each load and its compliance with technical ronment, Occupational Safety and
specifications are recorded in specific monitoring Major Accidents Prevention Policy,
sheets. Cogne has continued to develop and
implement its Management Systems,
Our lifecycle and scrap recycling approach helps certified according to ISO 9001, IATF
to minimise the environmental footprint of our 16949, EN 9100, and ISO 14001 stand-
operations. ards.
On the whole, our products, ingots and blooms, Management systems enable the
bars, wire rods, forged to requirements in auste- definition, monitoring and improve-
nitic, ferritic, martensitic and precipitation-hard- ment of all processes related to the
ened stainless steels comprise at least 70% recy- management of different areas. In
cled content, calculated according to ISO 14021 particular, the company carries out
standards. We are able to achieve these levels periodic audits and provides its em-
through the use of the electric arc furnace (EAF). ployees with specific training sessions
In 2020, we consumed 99,705 tonnes of recycled on a variety of subjects.
steel scrap at the Aosta site, a reduction of more
than 19% compared to the previous year. This
contraction is due solely to the reduction in vol-
umes resulting from the effects of measures to
contain and combat the COVID-19 pandemic. RESPONSIBLE SUPPLY CHAIN
Our products are distributed through the Aos-
During 2020, our efforts to raise the
ta hub and our logistics partner’s warehouses in
awareness of the supplier base on
Piedmont, as well as our own warehouses in Lom-
sustainability issues continued. Cogne
bardy and Veneto. The warehouses in Lombardy
has started a process of sharing sus-
and Veneto are dedicated to supplying the Italian
tainability issues with suppliers, to
market almost exclusively; subsidiaries and Italian
initiate a dialogue with them on sus-
customers that are not served by the warehous-
tainability issues, and also implement
es in Lombardy and Veneto and abroad are han-
a process of monitoring compliance
dled through the Aosta hub and the warehouse in
with the values and principles that are
Piedmont.
fundamental to the Company.
17IMPROVE, RAISE AWARENESS, INVOLVE:
Our commitment to responsible production and consumption
To ensure that sustainability princi- also to investigate aspects that are more closely
ples are increasingly integrated into related to sustainability. Last but not least, Cogne
supplier selection and management is committed to finding solutions for the recovery
criteria, sustainability issues have of production waste and by-products to promote
been integrated into supplier assess- the principles of the circular economy.
ment criteria wherever possible. For
accreditation, suppliers must accept
the Cogne Code of Ethics as well as Product labelling and traceability
complete the questionnaires on our
website, which include information on Materials are identified throughout the entire
management system certification, oc- production process to ensure complete tracea-
cupational health and safety and envi- bility, i.e. the link between the product, its doc-
ronmental management. umentation and testing. Products awaiting dis-
patch are identified according to the packaging
requirements of the customers.
The system procedure and Standard Operating
COMMITMENT TO Practices detail the responsibilities and methods
INNOVATION: FROM RAW for identifying products in the different produc-
MATERIAL TO CUSTOMER tion units and establish the rules that prevent any
commixing. Cogne has established all the pro-
Cogne is developing comprehensive cedures required for product identification and
solutions to reduce its environmental traceability over time and in the various loca-
impacts, through an ongoing com- tions, including when a product returns from the
mitment to innovation. Starting with customer. Due to the nature of the production
projects to improve process efficiency process and the product, the traceability plan is
and raw material consumption, then implemented as part of an identification system
moving on to packaging, product that ensures:
traceability and labelling, and custom-
er service, we are committed to a path • identification of non-compliant and/or suspect
that aims to increasingly combine in- products
novation and environmental sustaina- • separation/segregation of non-compliant and/
bility. Innovation has always meant a or suspect products
commitment to research, not only to
improve the qualitative and chemical • the ability to meet customer and/or mandatory
characteristics of our products, but response time requirements
18• the availability of documented information indicating the essential data needed
stored in appropriate formats to meet response to ensure traceability (e.g. brand, size,
time requirements batch).
• identification of production batches as required Prior to dispatch, another label is
by the regulations in force. printed, containing the same data but
with a barcode, which is placed on the
transport ready material.
Cogne ensures the conformity of products All batches of material shipped to the
throughout all the stages of their manufacture. customer are accompanied by a test
During the storage phases of the material, all certificate. Save for any specific re-
the necessary operational methods are applied quests indicated in the contract, this
for its identification and protection, whether it is certificate meets the requirements of
stored in internal and external warehouses, is in a EN 10204:2004 - point 3.1.
semi-manufactured stage (processing cycle to be
completed) or in the final product stage (ready
for delivery).
Research and Development
The identification of materials and test samples
allows them to be associated at all times with The year 2020 saw the continuation of
the work, control and test documents and the the innovation and development activi-
relevant production order. Identification is con- ties launched on themes relating to the
sidered to be an integral part of the production production of ‘speciality’ grades, par-
process and it is a particularly important aspect ticularly for the most demanding sec-
of the company’s Quality System. No material is tor of industrial production (Aerospace,
sent to the customer if its identification is doubt- Automotive and Oil&Gas). In the Steel-
ful. At all times. the central information system works area, the project related to the
ensures the traceability of materials (location and continuous casting of a highly corro-
last processing stage) and the possibility of re- sion-resistant superalloy has been de-
constructing the history of the product through- veloped further, with casting in an en-
out the manufacturing cycle, including tests, larged section suitable for remelting by
controls and examinations. the ESR (electroslag remelting) process.
Casting in the new section involved not
Compliant manufactured materials that have only thermodynamic and metallurgi-
passed all the tests and inspections are deposit- cal speculations, but also mechanical
ed in the warehouse. They are identified with tags evaluations of the hot loads to which
19IMPROVE, RAISE AWARENESS, INVOLVE:
Our commitment to responsible production and consumption
the casting plant would be subjected. plications in the oil and gas sector. In particular,
These evaluations were carried out by in the field of post-forging heat treatments, both
means of finite element simulations calculation and field activities have been pursued
and laboratory tests on material sam- to optimise the microstructures of manufactured
ples at temperatures above 900°C. products through treatments. Using temperature
The experimental phases (first casting sensors to create a 400 mm diameter rebar with
and subsequent process steps leading a length of over 3 m, the most extreme heating/
to the finished product being tested cooling laws were confirmed and the correspond-
for quality) were successfully conduct- ing phase transformations were predicted using
ed and standardisation within the new calculation tools. These analyses have enabled a
production cycle is underway. Also in review of the thermal cycles in order to optimise
the steelworks area, the insertion of the performance of the forged alloys.
an electromagnetic field generator
has been tested on the continuous
casting plant to create swirling move-
ments inside the steel with the aim of Lean Cogne: a company cannot grow if
homogenising its composition and all its components do not grow with it
making the steelmaking semi-prod- The term ‘Lean’ denotes a way of managing, an
uct structurally more intact, in order approach and a form of leadership for the govern-
to guarantee increasingly high quali- ance of the enterprise in which knowledge is the
ty standards of internal health on the winning factor. It is often assumed that lean think-
finished product. In the rolling sector ing aims to make the organisation more efficient.
an activity focused on the effect of
rolling gears was set up, based on the The real objective of Lean Cogne is continuous
same objective. Various deformation learning through experimentation to seek alterna-
sequences were simulated in the cal- tive solutions, and create a culture of improvement
culations to identify the most suitable extended to all as we involve our people in the
ones to guarantee the internal health achievement of a shared objective. This is what re-
of the products. At the end of 2020, sults in superior efficiency and performance, with
experimental tests were launched maximum attention to the needs of our customers,
to evaluate the indications from the rather than the mere application of mathematical
calculation simulations. In the forg- algorithms and cost rationalisation techniques.
ing sector, we continued our testing Lean Cogne is the opposite of staticity, of the sta-
of the hot transformation of duplex tus quo and of remaining in a comfort zone. Lean
stainless steels and superalloys for ap- Cogne is innovative, even revolutionary thinking.
20The year 2020 passed with our activities affected by the pandemic that undermined the economic foundations of our country, concurrently requiring a paradigm shift and a different way of looking at leadership. In this situation, Lean Cogne thinking has allowed us to uncover an organisation that is faster and able to identify the key points on which to intervene and the possible solutions. It pushed us to be a company that is even more amenable to market changes, and it has highlighted a pro- duction reality that is in actuality driven by product and process innovation. All of this took place as we continued to focus on widespread, continuous learning, for all the members of our organisation. When this period of forced slowdown gradually ends, the economic system will necessarily be dif- ferent and this will require the revision of business strategies. Cogne Lean is itself a strategy that will ensure our success in the post-COVID-19 market.
IMPROVE, RAISE AWARENESS, INVOLVE:
Our commitment to responsible production and consumption
GOAL 13 - CLIMATE ACTION ENVIRONMENTAL PERFORMANCE
AND NATURAL RESOURCE
Cogne’s efforts aimed at reducing CO2
and other greenhouse gas emissions
MANAGEMENT
have been going on for years. However, Responsible resource management is of para-
the steady growth in demand for steel mount importance to us. In fact, our production
and the worsening climate crisis are forc- site in Aosta pursues a path of continuous im-
ing leading companies to chart a course provement, seeking excellence in service levels,
towards an even more sustainable value quality, efficiency and flexibility. In addition to the
chain. The climate emergency affects development of plant operators in terms of pro-
everyone, including companies, so much fessionalism, flexibility and versatility, to achieve
so that today, according to the World these objectives, we are constantly making major
Economic Forum1, the greatest global investments to improve plant and infrastructure,
risks to business are linked to the conse- which are fundamental for any future develop-
quences of ongoing climate change. ment, reconciling environmental and economic
sustainability.
Companies should therefore consid-
er Climate Action - goal 13 of the 2030
Agenda, as a priority. It is precisely be-
cause of the importance of this issue that Air quality and noise reduction
Cogne has decided to make Objective Controlling atmospheric emissions and reducing
13 one of its four primary objectives. This noise are among the major areas for environmen-
chapter will report on environmental im- tal protection at Cogne, as they directly impact
pact indicators related to greenhouse the areas in the vicinity of the production facilities.
gas emissions and will also describe the
initiatives in which Cogne is active to pro-
mote mitigation of the effects of climate
The high standards required in terms of air quality
change.
render a complex system of controls necessary: our
plants are equipped with dust abatement equip-
ment in accordance with the technical standards
which the company is required to follow. With the
support of a modern emission monitoring system,
the steel production activity carried out at the
Aosta site is constantly monitored and the data
1 https://www.weforum.org/reports/the-global-ri- collected are transmitted to the competent Con-
sks-report-2020 trol Bodies and cannot be modified or interfered
22with by the Company, to guarantee transparency The DogHouse, which became op-
and timeliness in the transmission of data and the erational at the beginning of 2020. It
ongoing verification of the performance of the was completed in 2019 with an invest-
emission control equipment. ment of approximately € 3.5 million,
to reduce the noise levels in the most
The annual values of pollutant emissions into the sensitive areas following a monitoring
atmosphere are determined, in agreement with campaign carried out in agreement
the Control Bodies, by taking as a reference the with the control bodies.
measurement for the worst performance in the
year, then multiplying the figure by the plant’s The measurements carried out in 2020
hours of operation. Atmospheric emission values show a reduction of approximately 10
have been substantially stable over the three-year dB in the noise emission level of the
period. plant at the south-side receptors com-
pared to the measurements in 2018
To improve the noise situation, all new opera- prior to construction of the dog-house
tional facilities are designed to meet site-specific and the interventions in the winter of
technical criteria. In addition, many of the plants 2019-2020.
at the Aosta factory have soundproofing systems
with additional systems being designed.
23IMPROVE, RAISE AWARENESS, INVOLVE:
Our commitment to responsible production and consumption
Waste Management In 2020, 71.5 thousand tonnes of waste was pro-
duced, down 11% compared to the previous year.
We have been working for years to de-
velop 3R (Reduce, Recycle, Reuse) ini-
tiatives, including running information Protection of the soil and biodiversity
campaigns to encourage a paperless
workspace, reducing single-use plas- Cogne’s production activity ensures the protec-
tics or supporting the use of biode- tion of the soil with a series of measures, starting
gradable materials instead of plastics, from the initial planning stage for the construction
thus increasing the opportunities for of new plants. During the construction and oper-
circularity in our industry, regardless ation of plants, as well as during shutdowns, soil
of the department and the resource protection plays an important role, and modern
used. plant engineering minimises soil contamination.
Environmental information and training activities
Significant objectives related to the provide employees with instructions on how to
waste management system are to min- carefully manage the substances that could lead
imise waste generation and maximise to soil contamination.
waste recovery through an optimised
material flow management system.
We reuse and recycle the residues of
our processes to reduce waste: dur- ENERGY AND WATER CONSUMPTION
ing 2020, the amount of waste sent Environmental and energy performance is con-
for disposal was reduced by 12.71%. stantly monitored for individual impact factors
This variation is due mainly to the re- within the framework of our management systems,
duction in production volumes due to which have continuous improvement as one of
the difficult economic and production their objectives. In this section we provide data and
situation in 2020. In 2020, 84% of the information on energy and water consumption.
total waste generated was classified
as ‘non-hazardous’. In 2020, 21% of
the of waste was suitably recovered,
Energy consumption
whether in Italy or abroad, while the
remainder was appropriately dis- The contraction of steel mill production in 2020 re-
posed of through authorised entities sulted in a reduction in energy consumption. Pro-
in accordance with local, national and duction facilities reduced operations, maintenance
supranational regulations in force. activities were reduced accordingly and travel was
24cancelled. In addition to this, the energy efficien- the steelworks (the amount of steel
cy measures continued in 2020. Total energy con- produced by the Steelmaking Area
sumption in 2020 was reduced by approximately which is slated for further processing
9% compared to 2019, mainly due to the reduction within the plant) decreased by 14.9%
in the electricity used by the Aosta plants. in 2020 compared to 2019. This was on
account of the contraction of activities
caused by the global economic crisis
Energy intensity
triggered by the pandemic. A dete-
In 2020, the energy intensity (tot GJ/ton solid ACC) rioration in operating efficiency and
for steel production at COGNE increased com- therefore an increase in energy intensi-
pared to 2019, from 12.65 GJ/ton in 2019 to 13.50 ty were the direct consequences of this
GJ/TON in 2020. The production of solid steel from situation.
25IMPROVE, RAISE AWARENESS, INVOLVE:
Our commitment to responsible production and consumption
Zero km green energy Edison Energia, the Company signed two multi-year
Corporate Power Purchase Agreements (PPAs),
The use of electricity is necessary for the mainly for the supply of hydroelectric power. In ad-
operation of the smelting furnace and dition, from November 2020 7% of the consumption
production facilities. One of the compa- of the Aosta steel plant will be covered directly by
ny’s sustainability objectives is to reduce energy from the hydroelectric power plants in Valle
consumption as much as possible and to d’Aosta, thus bringing the total value of green sup-
use electricity from renewable sources as plies to the plant to 28%. This is pursuant to the five-
the preferred source. year agreement signed by the Company with the
In 2019, an initial multi-year Corporate CVA Group, a company based in Valle d’Aosta that
Power Purchase Agreement (PPA) was produces and distributes sustainable energy. This
signed with a leading national electric- partnership represents a further important step to-
ity supplier. During 2020, the company wards achieving the goal of making Cogne Acciai
signed two more separate multi-year Speciali 100% green in terms of energy supplies in
Corporate PPAs with leading national the coming years. The contract with the CVA Group,
energy suppliers, which will supply the like the one with Edison, is in fact an integral part
company with electricity from renewa- of the company’s energy sustainability strategy. Re-
ble sources, especially hydroelectricity. newable energies, accompanied by innovative tech-
Among them, collaboration with a sup- nological solutions with low specific consumption,
plier based in Valle d’Aosta has enabled are one of the cornerstones around which to build
the company to sign a PPA for the supply development while the growth of our company has
of electricity from a zero-km hydroelectric enabled us to sign a contract for the supply of elec-
source and to strengthen the relation- tricity from km-zero hydroelectric sources and will
ship between the company and the Valle save further CO2 emissions and strengthen the link
d’Aosta region. The energy transition between the company and the Aosta Valley region.
that the company has been developing
for years guides the energy efficiency of
our plants and helps to reduce the envi- Greenhouse gas emissions
ronmental impact of the industrial site, in
addition to reducing the energy expend- Cogne’s activities are part of the European Union’s
iture. Specifically, in the winter of 2019 Emission Trading Scheme (ETS), the CO2 market
and the summer of 2020, as part of the on which the EU’s climate change policy is based
profitable collaboration relationship that and an essential tool for cost-effective reduction of
has been in place for several years with greenhouse gas emissions.
2627
IMPROVE, RAISE AWARENESS, INVOLVE:
Our commitment to responsible production and consumption
CO2 emissions (Scope 1) from Cogne’s 91,428 tonCO2 in 2020, 124,180.75 tonCO2 in 2019.
ETS installations were 91,537.40 tonnes- The emission factors used are European Residual
CO2 in 2020. In addition, emissions from Mixes (latest version available) of the Association
diesel, petrol and LPG consumption and of Issuing Bodies.
refrigerant gas leaks totalled 841.43 ton-
CO2 in 2020. The decrease in Scope 1 Almost all emissions are attributable to the use of
emissions (-8%) is due to the decline in electricity from the grid and the use of natural gas
production in 2020. The emission factors in the production process.
taken into account for the calculation of
Scope 1 emissions are provided by DE-
FRA. Scope 2 emissions calculated us- Water Consumption
ing the Location-Based methodology
Cogne’s water consumption is related to civic, hy-
are: 75,793.63 in 2020 and 92,245.54 for
gienic and sanitary uses and to production uses,
2019. The emission factors for calculat-
particularly the cooling processes of the machin-
ing Scope 2 Location-Based emissions
ery used for steel production.
were taken from Terna’s International
Comparisons, for the most recent year In 2020, water withdrawals increased compared
available. Scope 2 emissions calculated to 2019, from 10,481 Mm3 to 11,569 Mm3; during
using the calculated using the “Mar- 2020, there were new uses (e.g. 2 furnaces), which
ket-Based” methodology are equal to: led to an increase in withdrawals. The water used
Unit of measu-
2020 2019 2018
rement
Scope 1 emissions tCO2 92.378,83 100.878,54 108.170,47
of which in ETS tCO2 91.537,40 99.865,70 107.235,30
of which non-ETS (fuel for company
vehicles, LPG for heating and tCO2 841,43 1.012,84 935,17
maintenance)
Scope 2 Emissions (Location-Based) tCO2 75.793,63 92.245,54 102.682,51
Scope 2 emissions (Market-Based) tCO2 91.428,25 124.180,75 n/a
Total Emissions tCO2 168.172,46 193.123,54 210.852,98
28for this purpose is taken from the underground wa- of all areas of the company, that environ-
ter table through our own wells, passed through mental sustainability criteria are gradu-
special cooling plants and recycled. At the end of ally becoming part of the rationale for
the recycling process, the water is sent to special evaluating products or initiatives, thanks
treatment tanks for purification and only then dis- also to ongoing education and aware-
charged into a surface water course. The quality ness of these issues.
of Cogne’s discharges is monitored monthly on
a wide set of parameters relevant to the activity. The results of this involvement over the
Water discharged from the main discharge point years are the positioning of environ-
undergoes prior screening, precipitation and sed- mental sustainability objectives as a top
imentation treatments. During the period from priority for us and the increasing num-
2017 to 2020, water quality always complied with ber of initiatives and projects that focus
regulatory limits for the discharge of water into on reducing the impact of processes or
surface water bodies. products.
ASSESSING ENVIRONMENTAL
IMPACTS
Over the years, Cogne has developed internal ex-
pertise in assessing the environmental impacts of
its processes and products and of the activities
generated by the organisation, in order to mitigate
and prevent them in a process of continuous im-
provement. And it is with this approach, and with
the awareness of a necessary and full involvement
29PEOPLE, TERRITORY, COMMUNITY: our roots and our future
PEOPLE, TERRITORY, COMMUNITY:
our roots and our future
GOAL 8: DECENT WORK uses to address this goal and contribute to achiev-
AND ECONOMIC GROWTH ing its objectives. In particular, the following top-
ics will be covered:
Our company is successful when our
employees grow professionally and as • How the objective of responsible economic
people. growth is supported by a governance structure
effective and sound economic and financial per-
The future of our company therefore formance.
depends on our ability to create a cul-
ture focused on empowering our hu- • How the Company is committed to protecting
man resources. its workers by ensuring their health and safety
and promoting continuous training and devel-
This is why we firmly believe that in opment.
order to build a talented workforce,
our people must be able to develop In this chapter, we report the indicators related to
their skills and demonstrate a high the economic and social sphere and the initiatives
level of motivation, commitment and promoting health and safety in the workplace
resilience. and the environment Cogne is involved in are de-
scribed.
The first step in this direction is un-
doubtedly the increasing dissemina-
tion of a preventive health and safety
culture. RESPONSIBLE ECONOMIC GROWTH
Undoubtedly, therefore, the descrip- A clear vision of family governance focused on an
tion of Sustainable Development industrial approach towards a responsible eco-
Goal number 8 of the 2030 Agenda nomic model represents a clear and shared point
“To promote sustained, inclusive and of reference for the management team that the
sustainable economic growth, full and owners have entrusted with defining the growth
productive employment and decent and development strategies around which to plan
work for all”: very aptly describes how the medium-and long-term actions that will ena-
Cogne conceives its way of doing ble the company to continue as a global player in
business and being a business entity. the sector.
Goal 8 has been detailed by the Unit- The Company has adopted a traditional Corpo-
ed Nations through different targets, rate Governance model comprising a manage-
and this chapter describes the initia- ment body, the Board of Directors, and the Board
tives, projects and structures Cogne of Auditors, which is the control body. The Board
32of Directors is vested with the broadest powers The economic and financial
of strategic guidance for the proper and efficient performance of Cogne Acciai
management of the Group. The Board of Statu- Speciali SpA. 2020 was
tory Auditors is responsible for monitoring com- a unique year.
pliance with the law and the Articles of Associa-
tion, the principles of proper administration and The economic indicators show a re-
the adequacy of the internal control system, to duction in both revenues and mar-
the extent that this falls under its purview. In this gins and this is due to the particular
context, the Supervisory Board, endowed with social and economic situation world-
autonomous powers of initiative and control, is wide. Revenues of €406 million were
responsible for supervising the functioning and down 23% compared to FY 2019.
observance of the Cogne organisation, man- The decrease in turnover is mainly
agement and control model pursuant to Leg. attributable to the quantity (135,114
Decree 231/2001, and to propose the necessary tonnes sold, down 17% compared to
updates thereto to the Board of Directors. the same period the previous year).
The decrease was mainly due to the
Cogne’s sustainability activities are managed by reduction in quantities sold as a re-
the General Manager, who promotes the adop- sult of the Covid-19 pandemic. The
tion and integration of sustainability principles company counteracted the decline in
in corporate strategies and business process- turnover by using the Covid-19 redun-
es among the various Group Departments and dancy fund and applying a significant
companies. The main responsibilities of this Di- amount of residual holiday leave. The
rectorate include: added value produced by the compa-
ny contracted sharply, falling by more
• Management of institutional relations, repre- than 20%.
senting Cogne in the various national and in-
ternational trade associations;
• In conjunction with the various company de-
partments, management of relations with sup-
pliers and customers win respect of sustaina-
bility issues;
• The design, management and monitoring of
sustainability projects supported by the com-
pany.
33PEOPLE, TERRITORY, COMMUNITY:
our roots and our future
Euro/000 2020 2019 2018
Added value of products 58.272 74.816 88.346
Employees 38.182 41.403 42.935
FLenders (Banks and Bondholders) 7.371 7.138 6.148
Public administration 8.296 17.282 20.376
Shareholders - - 250
ADDED VALUE DISTRIBUTED 53.849 65.823 69.709
Value Added retained by the Company to 4.423 8.993 18.637
support investment and development
It should be noted that Wages and salaries include salaries and other employee-related costs
The employee item decreased as a re- the distribution of dividends and to allocate the
sult of the use of the redundancy fund, sums necessary for the purchase of primary health
which was necessary due to the signif- care equipment and respiratory machinery the lo-
icant reduction in company activities cal health unit to support rescue activities for the
caused by the effects of the pandem- population.
ic. Similarly, the distribution of value
added to the public administration
has been greatly reduced, with lower Cogne and Valle d’Aosta: the distribution of
taxes discounted wealth produceda
(IRES in particular). The above figures In 2020 the wealth distributed by Cogne to the
refer to the Draft Financial Statements territory of the Autonomous Region of Valle d’Aos-
- Annual Report as at 31 December ta was greatly reduced, as a consequence of the
2020. For further information, please lower operating result. Discounting the use of the
refer to the Annual Report approved COVID19 redundancy fund while ensuring stable
by the Shareholders’ Meeting. Finally, employment levels, the value of wages and salaries
it should be noted that the Compa- contracted by 9.4%. Taxes, particularly IRES taxes,
ny’s Shareholders’ Meeting resolved fell sharply as a direct result of the reduction in the
on 20 April 2020 not to proceed with operating result (-92%), while services requested
34from suppliers in Valle d’Aosta remained stable
overall (-3.3%).
Euro/000 2020 2019 2018
Wages, severance pay and social security 50.110 55.308 56.017
contributions*
IRES / IRAP 109 1.427 2.437
Services: Val D’Aosta Suppliers 19.068 19.689 18.904
TOTAL 69.287 76.423 77.358
* This item also includes salaries and other employee related costs
The wealth generated and distributed on the Investments
Valle d’Aosta territory totals more than € 69 mil-
As at 31.12.2020, the Company made
lion(-9.34% compared to 2019). The above figures
investments in fixed assets before dis-
are included on the Draft Financial Statements
investments of € 20,510,009.
- Balance sheet as at 31 December 2020. For fur-
ther information, please refer to the Annual Report
approved by the Shareholders’ Meeting.
Reclassified under
Description Accounted for 2020
finished goods
Environment and Safety 3.396.763,36 2.582.218,58
Energy Efficiency 342.472,07 330.514,47
ICT 838.502,92 878.502,92
Productivity 8.463.846,36 8.646.476,91
Strategic Development 7.468.424,12 5.921.789,16
20.510.008,83 18.359.502,04
35PEOPLE, TERRITORY, COMMUNITY:
our roots and our future
Additionally, the strongly “capital in- This approach was even more significant and
tensive” nature of the Company’s in- strategic in 2020, and useful in addressing the
dustry requires that strategic plans uncertainties and fears that the pandemic has
and investments be evaluated on the created in workers and the population. Particu-
basis of a broad long-term outlook, lar measures have therefore been implemented
especially considering the fundamen- mostly targeted to the more vulnerable employ-
tal factors guiding the future evolution ees or those facing greater family difficulties,
of demand for steel products. Of the such as facilitating the reconciliation of home
total investment in plant and machin- and work times with flexible working hours, re-
ery in 2020, 47% was allocated to the mote working and other initiatives designed to
productivity category, while the envi- encourage their contribution to work under con-
ronment and safety category account- ditions of total security and serenity.
ed for 14% of total investment.
Empowering our employees, cultivating their tal-
The above figures refer to the Draft Fi- ents and listening to their feedback are the fields
nancial Statements - Annual Report as of action around which a series of initiatives have
at 31 December 2020. For further in- been launched with the aim of increasing aware-
formation, please refer to the Annual ness of their role and, consequently, the satisfac-
Report approved by the Shareholders’ tion of our customers.
Meeting.
In order to be able to innovate and provide cut-
ting-edge, quality products and satisfactory ser-
vices to our customers, it is certainly necessary to
PEOPLE AT THE CENTRE: create a lively and diverse working environment
DEVELOPMENT, TRAINING which is inclusive of all employees, helping them
AND SAFETY OF WORKERS to reach their full potential.
Careful management of Human Re- To achieve this, it is essential to build and nur-
sources as a way to manage the compa- ture a people-centred culture. As a guarantee of
ny’s reaction to cultural, technological all this, the Cogne Acciai Speciali Code of Ethics
and organisational change while pro- prohibits unlawful discrimination in employment
moting responsible growth has always relationships, guaranteeing everyone the right to
been one of the cornerstones around apply for a position in the company or to be con-
which Cogne Acciai Speciali has built sidered for a job on the basis of merit criteria, de-
its identity as a leading company in the void of arbitrary discrimination. The company’s
production of long stainless steels. Human Resources policy supports equal oppor-
36Tipologia di contratto
970
960
950
940
930
tunities by ensuring that recruitment, promotion, Remuneration is based on the per-
transfers, notice
920 periods, dialogue, rights and sonal performance, skills and behav-
protection as 910
well as other employment-related iour of each person and the tasks as-
decisions are made without regard to race, reli- signed to that person.
gion, gender, 900
disability, nationality or sexual ori-
2020 2019 2018
entation.
Dipendenti a tempo indeterminato Dipendenti a tempo determinato
Number of sites
Dipendenti
1000
900
800
700
600
500
400
300
200
100
0
(nr) 2020 2019 2018
Uomini Donne
Tipologia
Number di contratto
of contracts by type
970
960
950
940
930
920
910
900
(nr) 2020 2019 2018
Dipendentionapermanent
Employees tempo indeterminato
contracts Dipendentionafixed-term
Employees tempo determinato
contracts
37
Dipendenti
1000PEOPLE, TERRITORY, COMMUNITY:
our roots and our future
The particular economic and social who were able to use the greater number of resid-
situation in 2020 and the contraction ual hours of holidays and leave they had at their
of business activities also affected disposal. Flexibility is a paradigm that ensured the
the number of employees in force. protection of the delicate balance between health
At 31 December 2020, Cogne’s work- and work of employees during the pandemic,
force numbered 952 employees (964 without negatively impacting productivity, thanks
in 2019), consisting of 10 managers also to the technology that has made digital col-
(the figure is unchanged compared laboration tools available.
to 2019), 285 clerks and executives
(the figure is unchanged compared to Flexibility has expressed itself in the way of work-
2019) and 657 workers (669 in 2019). ing and therefore in the use of remote or smart
There were also 3 internships that be- working (involving 198 people), but also in the
gan in 2020 (7 in 2019). In terms of An- adoption of more horizontal and fluid organisa-
nual Work Units - AWU, the number tional models, which emphasise the empower-
of employees at 31/12/2020 is 1,107 ment of individuals, rely on concrete objectives to
AWU (1,140 in 2019). With the agree- be achieved, and ensure the immediate circula-
ment of the labour unions. we decid- tion of information that is essential for the align-
ed to apply the ordinary redundancy ment of working groups.
fund “Emergenza COVID-19” as a way The company conducted a survey of employ-
of countering the drop in orders and ee experiences to assess whether smart working
protect our employment levels. We could, over time, be transformed from a compul-
were thus able to protect workers with sory solution into a real opportunity. The peri-
fixed term contracts while maintaining od was experienced positively by almost all the
the professionalism that has enabled staff involved (89.7%) and the results in terms of
Cogne to grow in the global stain- satisfaction are decidedly positive, mainly linked
less steel market, with new products to better organisation and management of their
in strategic sectors. The CIGO [Cas- working time and an increase in the perception of
sa Integrazione Guadagni Ordinaria the effectiveness of their professionalism. Employ-
- ordinary redundancy fund] covered ees particularly value the increased autonomy and
all workers working in the produc- report the feeling of an acceleration in learning
tion departments (i.e. Raw Materi- processes inherent in their roles, due to the op-
als Management, Steelworks, Rolled portunity to experiment and generate ideas. On
Products, Forgings, Maintenance and the other hand, some points of attention and im-
Quality Operations), and to a lesser provement emerged on issues such as teamwork
extent also those working in the staffs, and communication, on which the subsequent dis-
38cussion among managers focused. While the re- HEALTH AND SAFETY FIRST
sults expressed by the employees were collected,
an in-depth reflection is still ongoing in order to 2020 was a year of particular complex-
define a different working routine, with solid work ity. The pandemic emergency and the
and connection rules, in situations and for activ- regulatory requirements faced by the
ities that can be profitably carried out remotely. company were complex, continually
changing and protracted. In this sce-
nario, the severity index stood at 0.54
and the frequency index was 8.8711.
Cogne and leisure time
The reduction in the severity and fre-
The Company is constantly striving to offer its em- quency indices by 8% and 30% respec-
ployees a wide range of discounts and dedicated tively compared to 2019 show that even
offers on a wide range of products and services in a complicated year like 2020, the
to complement its corporate welfare programme. company’s commitment to ensuring
the health and safety of all remained
constant, as also proven by the grad-
ual but steady reduction in the indices
over the period from 2018 to 2020.
18 0,6
16 0,59
14 0,58
12 0,57
10 0,56
8 0,55
6 0,54
4 0,53
2 0,52
0 0,51
2018 2019 2020
Indice di Gravità Indice di Frequenza
IF IG
1 The accident indices were calculated as follows:
- Accident frequency index: (number of accidents/hours worked) x1,000,000. Only accidents that caused more than three days of
absence were considered, while accidents that occurred going to and returning from work were counted.
- Severity index: (number of days lost through injury/hours worked) x1,000. Only absences of more than three days involving
accidents have been taken into account. Accidents occurring while going to and from work are excluded and the absent days are
calendar days.
39PEOPLE, TERRITORY, COMMUNITY:
our roots and our future
Of particular note is the figure for near It was developed internally by the Prevention and
miss reports, which more than tripled Protection Department in collaboration with the
between 2018 and 2020; this figure is Information Systems Department. Reports can in
not an indicator of the fact be made from any computer on the company
network, including those available for general use
dangerousness in work but the in-
(reports can be made anonymously from depart-
creased awareness of operators and the
mental workstations that can be accessed with an
impact that health and safety training
area rather than a personal ID). The development
and information activities are having.
of the SOP-SGSSL initially concerned the proce-
The increase in the number of reports
dures for managing the reports issued, later also
enables identification of potential caus-
covering the implementation of the types of re-
es of accidents, allowing for prompt in-
ports that can be managed through the system.
tervention. It should also be noted that
In addition to hazard reports, ‘boxes’ have been
during the last three years the compa-
added concerning all types of events related
ny has not received any occupational
to occupational health and safety aspects; i.e.:
health and safety orders from the rele-
missed accident reports, accident reports, missed
vant control bodies.
injury reports, injury reports.
Occupational health and safety With the further expansion of the activities man-
management system. ageable through the SOP-SGSSL (audits), we have
Complex and constantly updated legis- included two other categories of event reporting:
lation, improved human resource man- internal audit non-conformities and external audit
agement and other measures must be non-conformities. There are two types of audits
used to promote occupational health currently manageable through the SOP.SGSSL
and safety protection. With this objec- and they are the most important:
tive in mind, in 2020 Cogne embarked 1. Internal audit - related to ISO 45001;
on a path to develop and certify a sys-
tem for the management of occupa- 2. Internal safety audit - covering specific topics
tional health and safety. included under Legislative Decree 81/08.
The Occupational Health and Safety In the operational system of the occupational
Management System software (SOP- health and safety management system, the im-
SGS SL) was created to provide all provement plan has evolved from a classic Excel
Cogne workers with the possibility of tool into a dynamic document that can be shared
reporting hazards, even anonymously. by all stakeholders. The design of the SOP.SGSSL
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