Indesit Sustainability Report 2012

Sustainability Report 2012
Sustainability Report 2012 Contents
Contents
2 3 4 5 Indesit Company and sustainable development
About this document To our stakeholders 2012: Indesit Company sustainability highlights
6 Who is Indesit Company? 10 Sustainability governance 12 Stakeholders 13 Material issues
14 Economic performance
14 Economic background 14 Creation and distribution of wealth
16 Social performance
17 Human resources 19 People 24 Training 26 Assessment and professional development 28 Internal Communication 29 Remuneration 30 Health & Safety 34 Industrial relations 37 Customers 38 Quality and innovation for customers needs 43 Guaranteeing product quality 44 Relationships with dealers and customers 45 Suppliers 47 Quality and transparency in procurement processes 51 Community and territory 52 Supporting young people 52 Promoting equal opportunities 53 Training young people 53 Safeguarding the environment 53 Volunteers for a day
54 Environmental performance
55 Safeguarding the environment 57 Indesit Company innovation for the home of the future and safeguarding the environment 60 Eco-efficiency in production 64 Logistics 65 Sustainable distribution and warehouse management 65 Recovery of products and materials 66 Active role in Europe for environmental protection
68 GRI content index 74 Global Compact-GRI correspondence table 75 Report of the independent auditors 1
Sustainability Report 2012 About this document
About this document

Indesit Companys Sustainability Report, which has been published yearly since 2001, is intended as a statement of the Companys approach to sustainability and provides stakeholders with an exhaustive and balanced account of values, strategies and performance in three areas: economic, environmental and social. The 2012 Sustainability Report was drawn up as recommended in the Sustainability Reporting Guidelines (GRI-G3) defined by the Global Reporting Initiative in 2006. The GRI-G3 guidelines contemplate three levels of reporting reflecting breadth of content covered, levels which may be qualified by a + sign if the report is audited by an independent 3rd party organization. 2012 was the second year running in which Indesit Company attained the maximum application level (A+). In addition to informing stakeholders on all relevant aspects of the impact generated by their activities, the Report underwent a limited audit on the part of auditors KPMG S.p.A. Their independent auditing shows that the sustainability report is not a merely self-referential instrument but a representation of the Groups economic, social and environmental performance that is as objective as possible. To help readers find the information they need the Report includes, at the end, the GRI Content Index, with cross references to pages in the Report itself and to external sources. The data and information in the Report refer to the year ending on 31 December 2012 and, where specified, to significant projects implemented in the first few months of 2013. They refer to the parent company Indesit Company S.p.A. and the companies it controls (hereafter also Indesit Group or Indesit Company). Further details may be found in Indesit Groups consolidated financial statements. Any limitations to the reporting boundary are duly specified in the text. To achieve the highest possible level of reporting reliability, directly measurable values were preferred to estimates, which were used as little as possible. Where necessary, estimates are based on the best methods available or on sampling and their use is specified in the text. To enable readers to appreciate trends in the Groups sustainability performance, quantitative information is given for the last two or three years, except for certain data only available for 2012. Finally, significant events or changes in measurement methods which could significantly affect the comparability of the information in this document with that in the 2011 Sustainability Report are dealt with in footnotes. Performance in 2012 (especially environmental performance) was affected by the exit from the reporting boundary of the two facilities (Brembate and Refrontolo) that shut down production in 2011.
Sustainability Report 2012 To our stakeholders
To our stakeholders
2012 was another difficult year for the economy and the home appliance industry. Despite this, Indesit worked well and successfully defended its positions. In April 2012, the International Monetary Fund predicted that the world economy would grow 3.5% while GDP in the Eurozone would be down 0.3%. But as the months passed, the situation continued to worsen, the recovery started backsliding again and prospects for the future were darkened by uncertainty. In the course of the year, the home appliance market saw a 3% contraction in Western Europe and 3.3% growth in Eastern Europe, with an overall drop in demand in so-called Greater Europe of nearly one percentage point. Yet again the crisis forced us to rethink our plans. But we managed to perform well, achieving positive sales results and margins in the face of a negative market. Successful sales of new products and the Companys competitiveness enabled us to gain market share, with particularly encouraging results in the UK and Eastern Europe. Indesit Companys 2012 was marked by other things however: we invested 90 million euros in new products, over 13 million appliances were sold and quality was improved by a further 7%; we filed over 90 patent applications, continued to improve workplace safety - with a 28% drop in the accident frequency index in industrial sites (100% of our industrial facilities are OHSAS 18001 certified) - and reduced our CO2 emissions per unit produced by a further 2%. Total hours of employee training rose 40%. We pressed on with our domotics research and innovation activities in the HomeLab consortium, which was joined by new partners. A project was launched to define a new Interoperable standard, so that a communication code can be created to enable functional interaction between devices made by the various HomeLab manufacturers, the domotics system and the Web. Home automation will yield big benefits in terms of consumption levels, usability, smart grids, diagnostics, etc. It was an important year for the Jonathan Project, whose mission is to help young people with social and judicial problems regain a place in the community and which Indesit has been supporting uninterruptedly for 14 years now. The Project, which employs innovative methods, was further consolidated over the year in Italy and Poland. 2013 is proving to be another difficult year, not much better than 2012. But we will continue to do what is needed to consolidate the Groups competitive position. Andrea Merloni Chairman, Indesit Company
Sustainability Report 2012 2012: Indesit Company sustainability highlights
2012: Indesit Company sustainability highlights
Community & Territory

Directly generated economic value: 2,948.7 million euros 14th year of Jonathan Project 16,331 employees
Su su stain pp ly able ch ain
o Pe ple
On-line survey of suppliers sustainability
Employees on indefinite term contracts: 85%
2% reduction in CO2 emissions
28% Reduction in accident frequency index in industrial sites
Eurocucina 2012 Indesit innovation showcase and Hotpoint Innovation Area Over 600 people working in R&D
Over 90 patent applications filed
R&D investments: 26 million euros
Innovation
H & S ealth afe ty
&E
7% reduction in the defect rate in 1st year of guarantee
ty ent ali Qu ronm i nv
Sustainability Report 2012 Indesit Company and sustainaible development
Indesit Company and sustainaible development
Value in industrial initiave unless there is also commitment to social progress

There is no
Aristide Merloni (1967)
Who is Indesit Company?
Founded in 1975 and listed on Borsa Italiana in 1987. O ne of Europes leading manufacturers and distributors of large home appliances (washing machines, washer-dryers, dishwashers, fridges, freezers, cookers, hoods, ovens and hobs).
Leader in important markets like Italy, the UK and Russia. Entry to the small domestic appliances market. Revenues of 2.9 billion euros in 2012 8 production facilities
in Italy, Poland, the UK, Russia and Turkey
Over 16,000 employees
3 main brands
Indesit Company Italia has been ranked Top Employer Italia, a prestigious accolade endorsing companies that excel in human resources management. This certification is carried out every year by CRF Institute, which has been operating since 1991 and is now in 45 countries across five continents.
Indesit Company sees enterprise as a responsibility towards people and the territory they live in, both of which requiring safety and guarantees. Such responsibility entails investment in human resources, product quality, energy saving and safeguarding of the environment, meaning both the natural environment and the social context in which business is done, and reflects the Groups continuous commitment to improving products, processes and environmental and energy performance as priorities in terms of economic competitiveness and customer satisfaction. Innovative, Respectful, Ambitious, Genuine and In touch with others are the five values that inspire Indesit Company, the guiding principles that direct its choices along with its mission and strategic approach. Adherence to these principles is the means whereby the criteria of improvement, also stated in the Quality, Energy and Environment Policy, are actually implemented.
Sustainability milestones 2012 2011 2010 2009 2008 2007 2006 2005 2004 2003 2002 2001 2000 1998
At the 19th Eurocucina, Indesit Company was once again one of the protagonists, presenting innovations in the field of energy saving and smart homes. For the second year running, Indesit Companys Sustainability Report attained the maximum application level of the GRI Guidelines (A+). Indesit Company obtained multi-site Quality (ISO 9001) and Environment (ISO 14001) certification. Health and Safety Award and Green Award set up to raise awareness in Group plants and acclaim outstanding health & safety and environmental performance. Indesit Company receives the 2010 Enterprises for Innovation award in the Large Enterprises category. Indesit signs the Charter for Equal Opportunities and equality at work and obtains international OHSAS 18001certification for its workplace health & safety management system. The Group introduces a stringent Code of Conduct ensuring full respect for all its stakeholders. Indesit Company is admitted to the Etica Sgr ranking of European companies actively committed to corporate social responsibility and wins an Intellectual Capital Value award for its commitment to developing human capital. The international framework agreement guaranteeing non-discrimination in terms of gender, race, religion and opinions wins the first Etica&Impresa Award. The Group wins the Oscar di bilancio for corporate governance. Launch of the Aqualtis, a washing machine incorporating all the most advanced and environmentally respectful technologies and functions. Indesit Company makes re-cyclettes with materials recycled from old fridges. The Code of Conduct stipulated with the trade unions in defence of employees rights wins the first Sodalitas Social Award. Oscar for on-line financial communication. Indesit Company publishes the first sustainability report in the sector and wins an Oscar di bilancio for its financial communication. Launch of the Quality System, designed to engage the entire Company in improving quality procedures in all business processes. Launch of the Jonathan-Indesit Company project to help disadvantaged young people with criminal records to make a return to society through work.
Mission
To be the leading European manufacturer of technological solutions that are compatible with the environment and deliver quality time to people day after day.
Values
Innovative Because every activity Indesit Company undertakes shows the creativity and initiative of people who aim at and apply innovation in everything they do. Respectful Because Indesit Company acts thoughtfully and responsibly towards its consumers, dealers, employees, suppliers, shareholders, the communities where it works and the environment in its broadest sense. Ambitious Because the ability to improve everyday stimulates enthusiasm and passion for excellence and leadership. In touch with other ... with others, because constant relations with all stakeholders enable the Group to listen to their needs and offer the answers and solutions required to obtain the best results. Genuine Because Indesit Company works in an open, transparent and authentic manner, doing business simply, dynamically and flexibly.
Business principles
People at the centre
Development of human resources and professional know-how, respect for the physical, moral and cultural integrity of every individual, promotion of equal opportunities and diversities. Respect for the fundamental rights of workers the world over in line with the principles set forth in the Conventions of the International Labour Organisation (ILO) on the abolition of child labour, the principles of trade union freedom, worker organisation, collective negotiation and the development of equal opportunities. Serving as a tool for communication, engagement and co-operation on shared objectives.
Respect for workers rights
Adoption of a participatory model in industrial relations
Creation and distribution of value added Respect for and protection of the environment Innovation and quality Permanent training Fairness and transparency Integrity
Success in production and market competition through the creation and equitable distribution of value to stakeholders. Sustainable development based on a proactive approach towards environmental issues and constant commitment to objectives that privilege the needs of future generations.
Focus on research and development for continuous innovation in all business processes. A permanent training system to foster the development of skills and professional trades. Satisfying stakeholders expectations through transparent communication of strategies, activities, results and decisions. Ethical behaviour in every activity, avoidance of all forms of corruption and violation of laws and ethical principles.
Quality and environment policy: key points

Increase the satisfaction of all parties concerned by: maximizing the quality of the entire life cycle of the product range through a focus on excellence, which can be achieved and measured by exceeding customer expectations; prevention of pollution and reduction of the environmental and energy impact of both products and industrial sites through the use of eco-compatible technologies and techniques, renewable energy sources and recycling of materials and products. Improve process efficiency by: optimizing the efficiency of resources; refining processes through ongoing development of technologies that help improve the quality of life of all concerned (consumers, clients, employees, suppliers, shareholders, local communities); training personnel and fostering a culture of continuous improvement of performance. Foster a culture of quality and respect for the environment by: maintaining and improving the quality management system (based on ISO 9001:2008); implementing and upgrading environmental management systems in all Indesit Company sites, in compliance with ISO 14001:2004; periodical internal and external communication to inform all stakeholders of the main initiatives, innovations and results and contribute to the cultivation of a quality and environment culture. Promote and broaden communication tools: providing information encouraging people to co-operate and integrate; providing information on quality, environmental and energy issues both internally and externally.
Sustainability governance
Indesit Company adopts measures aiming to prevent, as far as is possible, the occurrence of events which may jeopardise the rights of stakeholders, be they employees, customers, suppliers, shareholders, investors, communities or future generations. The prudential approach adopted by the Group in its management of economic, social and environmental issues is founded on strict compliance with the applicable laws in the countries where it works and on voluntary initiatives designed to guarantee stakeholders interests. Firstly, the Company has a corporate governance system conforming to the principles contained in the listed companies governance code issued by Borsa Italiana. The Group has also adopted its own Organisational Model pursuant to Legislative Decree 231/2001 (administrative liability of corporate persons) and has adjusted its financial reporting system to the requirements of law 262/2005 (Investor Protection) in order to guarantee adherence to international best practices. The Code of Conduct, an integral part of the Organisational Model, applies to the entire Group, in line with the provisions of local legislation and, in any case, in such a way as to guarantee a suitable level of risk coverage concerning the offences provided for in Legislative Decree 231/2001 in all geographical areas. Work was done in 2012 to redefine processes and activities at risk for the purposes of Legislative Decree 231/2001 in light of changes in the law and in Indesit Company S.p.A., and with special reference to the following: environmental offences, use of foreign labour without residence permitand corruption between private individuals. The board of directors approved the modification of the Code of Conduct and of the Organisational Model regarding the first two offences, while the necessary analysis is continuing in the case of the third, partly in light of the experience of coming into line with the Bribery Act in the UK. Regarding environmental offences in particular, the Supervisory Body ascertained that the Group obtained ISO 14001 multi-site certification in 2011 (it had previously been for single sites). This certification in itself provides strong assurance of effective control of environmental risks and waste disposal issues. In 2012, a training course on the new Code of Conduct was held. Training on the Code is obligatory for all new entries and includes a final assessment. Under the 2012 audit plan, defined on the basis of a risk assessment process, certain audits (Business Ethics Compliance and Internal Control over Financial Reporting - ICFR) were also carried out on certain Group branches abroad (Germany, The Netherlands, Poland and Switzerland). Designed to assess the Internal Control System, these audits also look at the corruption risks indicated in legislative decree 231/2001.
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Indesit adheres to the mAIN international sustainability standards

Global Compact (2006): the initiative supported by the UN to promote and encourage respect for certain universal principles regarding human rights, labour, the environment and the fight against corruption. Charter for Equal Opportunities and equality at work (2009): an initiative promoted by Fondazione Sodalitas and other associations , obliging signatories to respect a series of principles on equal opportunities. CECED Code of Conduct: obliges all members to promote correct and sustainable working conditions, social responsibility and quality of the environment. International Labour Organisation Conventions: the Group undertakes to promote responsible labour management practices, also through its suppliers.
Indesit Company is also aware that its business, and therefore its economic and financial performance, are correlated to the risks and opportunities created by sustainability issues. Indesit Company takes into consideration the impact that climate change may have on its business and in particular the possible consequences of stricter legislation in the future. In particular, the growing focus on climate change and the need to reduce energy consumption and environmental impact are constantly stimulating the Group to invest in research and development for the production of increasingly eco-friendly household appliances and the adoption of production systems respecting the ecosystem. In order to responsibly and systematically manage its impact, the Group has created a social responsibility unit, under the External Communications & Press Office department, to manage sustainability activities and the reporting of performance levels. Furthermore, the management and the Manufacturing and Quality & Environment departments in particular, assess objectives and results on a monthly basis and monitor the Key Environmental Performance Indicators management system at Business Review Meetings (BRM). An important step was taken in this connection in 2011. A device (Blink) for automatic metering of consumption levels (with hourly data) was developed to improve the reliability and precision of energy and water consumption measurements in production facilities. This system will be refined in 2013 (eg. by implementing additional activities and reliability monitoring systems) to achieve fully effective consumption data analysis and planning of efficiency boosting action, and to move into line with the requirements of the new European Directive on energy efficiency.
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EXTERNAL COMMUNICATION
Since its stock market listing in 1987, Indesit Company has had a corporate communication department to provide constant, timely and transparent information for the market, and its own stakeholders, in compliance with governance regulations for listed companies. In line with the Companys objectives, the Department helps inspire confidence and credibility in stakeholders and provide indispensable protection and consolidation of the Companys reputation.
Social responsibility management in Indesit Company

Planning & Policy
CEO
Chairman
Finance
HR Quality & Environment Business development
Legal
Internal Audit
Institutional Relations
Reporting & Auditing
Brand & Consumer Marketing
External Communications & CSR
Accounting
Home Care
Food Treatment
Service & Cons. Care Manufacturing Supply Chain & IT Sales
Stakeholder engagement
Stakeholders

The Community and future generations Personnel Customers and retailers
Suppliers Public administration
Lenders
Shareholders
Indesit Company is committed to open and transparent dialogue with its stakeholders. Such communication provides opportunities to listen to their expectations, generate benefits in terms of improving risk management, strengthen trust in the Group and identify new strategic opportunities. Relevant stakeholders were identified using the AA 1000 SES methodology (AccountAbility 1000 Stakeholder Engagement Standard) and dialogue continued in 2012 in line with this approach. Activities included the supplier conventions within the framework of the annual Supplier Awards, customer satisfaction surveys and ongoing dialogue with trade unions on industrial issues.
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Material issues
Indesit Company defined the key themes to treat in its Sustainability Report by analyzing social responsibility parameters relevant to the Group and its particular industry in relation to the expectations of its stakeholders. This process involved the use of a matrix of variables representing the Groups economic, environmental and social impacts and their influence on stakeholders judgements and decisions. Themes identified as important were classified as risks or opportunities to facilitate planning of monitoring and mitigation (for the risks) and improvement and development (for the opportunities). Material issues matrix Issues of concern to stakeholders
Opportunities Risks
Environment Climate change Monitoring of direct and indirect impacts Eco-sustainable products development Community Respect for human rights Support for community Compliance with legislation Suppliers Supply chain monitoring Partnership and fair trade Personnel Health and safety Training Equal opportunities Communication and dialogue Industrial relations Consumers Product innovation Transparent communication Customer satisfaction Shareholders Business integrity Economic performance
Infl uences on stakeholder judgements and decisions
High
Medium
Low
Medium
High
Significant economic, social and environmental impacts of Indesit Company
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Sustainability Report 2012 Economic performance
Economic performance
Economic background
The white goods market in 2012 saw a 3% contraction in Western Europe and a 3.3% improvement in Eastern Europe with respect to 2011. The Groups economic and financial performance was affected by these market trends. In the Western European Area there was a general reduction in sales compared to 2011 (-1.8%). The exceptions here were the UK and Northern Europe, where market trends were positive. In the UK, revenues from services were also up, mostly due to extra-guarantee sales. Sales in the Eastern European Area were up 9.4% on 2011. Revenues from finished products grew as a result of higher sales volumes and the trend in the rouble. In the non-European countries (International Area), revenues from finished products were down on 2011 due to lower sales volumes. Further details can be found in the Annual Financial Report to 31 December 2012.
Creation and distribution of wealth

Directly generated economic value represents the Groups capacity to create wealth and distribute it to its stakeholders. The tables and charts below detail results in terms of value creation and distribution among the Groups stakeholders and are based on reclassified consolidated income data.
Economic value generated (million euro)
3,000 2,870.0 2,948.7
Distribution of 2012 economic value generated
2,.500
0.02% 6.29% 1.66% 1.84%

14.29%
Operating costs 75.90% Remuneration of personnel Remuneration of lenders and shareholders
2,000
1,500 Remuneration of public administration 1,000 Donations and sponsorships Economic value held by the Group
500
2011
2012
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Sustainability Report 2012 Economic performance
Economic value (million euro) Economic value generated by the Group Total revenues * Financial income Economic value distributed by the Group Operating costs Remuneration of personnel Remuneration of lenders and shareholders Remuneration of public administration - direct and indirect taxes - grants (subsidies) Donations and sponsorships Economic value held by the Group Amortisation and depreciation Provisions Reserves *
2012 2,948.7 2,945.4 3.3 2,763.1 2,238.0 421.3 54.3 48.9 53.1 -4.2 0.5 185.6 109.9 34.1 41.6
2011 2,870.0 2,867.2 2.8 2,705.0 2,153.7 426.5 63.7 60.5 67.1 -6.6 0.6 165.0 112.4 17.4 35.2
2010 2,948.3 2,946.5 1.8 2,706.8 2,119.9 449.1 67.2 69.7 77.1 -7.4 0.9 241.5 126.0 56.7 58.8
For the sake of comparison with data in the Annual Financial Report to 31 December 2012, the consolidated income statement was reclassified by nature so that Total Revenues includes the Other revenues and Change in finished products inventories items and is stated net of subsidies from public administrations.
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Bilancio di Sostenibilit 2012 Social performance
Social performance
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Sustainability Report 2012 Social performance
Human resources
In 2011 we said that we would Grow human capital > > Continue filling key positions with internal resources. Develop a centralized management system for key people development. Implement a national and international communication campaign on Employer Branding. Continue training on Legislative Decree 231/01. Engaged 361 employees in the 2012 job rotation process. Renewed the People Development process by structuring it in three phases: Performance feedback, Leadership review and Community. Launched the Shape your career international employer branding campaign, which won various awards and mentions. Provided training on the new Code of Conduct following the updating of the Code itself and the Organizational Model pursuant to Legislative Decree 231/01. Used the new automated tool for personnel remuneration management. Provided over 110,000 hours of training on health and safety. Reviewed the training process on the basis of skills assessment and developed a SAP application enabling sites to plan, manage and record training information. Made significant improvements to electrical and gas systems and fire hydrant supply in Caserta, Fabriano and Lipetsk and introduced stretch film packaging equipment that doesnt use gas or heating elements in Lipetsk. Defined structured action plans for Manisa and Lipetsk involving improvements (started in 2012 and continuing in 2013) and audit procedures for checking compliance with instructions, especially on maintenance. Launched projects to improve work stations in the Lipetsk Cooling plants (eg. reduction of noise and temperature) and at Yate (alignment of assembly lines with the standards of the Indesit Manufacturing Excellence project). Prepared for the removal of asbestos at the only site where it exists (Peterborough) by transferring the spares warehouse and products reprocessing activities to reduce risk of exposure. In 2012 we
>
>
>
Complete implementation of the new web tool for global management of remuneration processes. Continue health and safety training. Redefine the health and safety training process by basing it on assessment of competencies and developing a specific platform. Promote activities to reduce fire risk and carry out a new risk assessment of the main processes, including packaging. Develop programmes to improve safety in the use of equipment.
Safeguard peoples health and safety > >
>
>
>
Promote and support projects to improve work station ergonomic and organizational factors.
>
Complete asbestos decontamination and promote action to reduce health risk factors.
Goal reached
Goal partially reached
Goal failed
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For the future, we want to... Grow human capital Develop and further improve Indesit Performance Feedback, Leadership Review and Communities processes. Refine the job rotation management process. Continue to develop integration of remuneration processes and systems at global level. Safeguard peoples health and safety Launch new communication activities to raise personnel awareness of health and safety. Initiate a project to assess earthquake risks at 14 sites in Italy and Turkey. Remove at least 70% of the asbestos at the Peterborough site. Strengthen co-ordination of health inspections, also in relation to management of work stress.
Human Value Chain
Indesit Companys approach to the management of its human resources is based on the definition and maintenance of the Human Value Chain, from talent attraction through creation of value to exit from the Group. Indesit Companys main objective is to become more competitive in its industry both by developing professional expertise in-house and by taking in high level specialists from outside. In this context, Indesit Company will continue to focus on attracting the best external candidates (mainly from universities and other companies) through the new Value Proposition launched in 2012 and a major communication campaign. Indesit Company is equally convinced that the professional development of all its people, and especially those promising excellence, must be increasingly based on the new strategic context and the new leadership model.
Compensation & Benefit
Employer branding, recruitment & equal opportunities
Personal development & training
Human Value Chain
Industrial relations
Internal communication Health & safety
Organisation, management of work & systems
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People
In its relationships with human resources, the Group prefers stable, long-term contracts: at the end of 2012, 85% of the workforce were under indefinite term contracts and 15% were on fixed-term contracts. Over 600 temporary workers were employed in 2012 and 36 young people were given internships. The overall turnover was 8.5% of the total workforce.
Employees by - title (no.) Management White collar Blue collar Total Temporary Internships - gender (%) Women Men
In 2012, Indesit Company employed over 16,000 people across eight industrial centres (in Italy, Poland, the UK , Russia and Turkey) and 24 commercial branches.
16,331
2012 141 4,336 11,854 16,331 618 36 34% 66%
2011 136 4,401 11,575 16,112 290 44 34% 66%
2010 125 5,128 10,807 16,060 565 56 34% 66%
Turnover (leaves) by Total - geographical area Italy Turkey Poland France UK Russia Other countries -gender Men Women -age < 30 years between 30 and 50 years > 50 years -title Management White collar Blue collar
2012 8.5% 4.9% 17.4% 11.1% 10.6% 8.5% 7.9% 10.6% 9.4% 6.8% 14.7% 6.2% 10.3% 8.5% 6.3% 9.3%
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Avergage seniority of employees (years) Management White collar Blue collar Total
2012 11.0 10.4 10.5 10.5
2011 11.5 10.9 10.4 10.6
2010 11.3 10.6 10.1 10.3
Average age of employees (years) Management White collar Blue collar Total
2012 45.9 39.1 39.9 39.8
2011 45.6 39.7 39.2 39.4
2010 46.0 39.5 38.9 39.1
Note: Since 1 January 2012, 722 customer service employees in UK have been considered blue collar instead of white collar. For the sake of comparison, the data for 2011 were reclassified accordingly.
Professional areas in 2012

4% Innovation & development 25% Industrial area Support functions Marketing & sales 4%
Types of contract in 2012

Indenite
67%
85%
15%
Fixed-term
Hirings and leaves by title, 2012

1,500
Hirings and leaves by type of contract, 2012

1,500
Recruitments Hirings Leaves 890
1,361
1,104
1,000
Discontinuations
1,000
748
859
498
500
500
243
272
0 Blue collar White collar
12
0
Indenite Fixed-term
Management
Note: In addition to the 3 managers taken on in 2012, there were 14 promotions from white collar to manager. The differences between the data for hirings and leaves and changes in workforce numbers are due to promotions/demotions.
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Employees by geographical area
(%) 30 28 27 27 28
30
29
2010 2011 2012
25
20 15
19 19 19
15
14 14
10 6 5 2 2 2 0 Italy Russia United Kingdom Poland Turkey France Extra UE Other UE 1 1 1 1 1 1 7 6
Recruitment
In line with the principles of equal opportunity, International. non-discrimination and protection of diversity, the Innovative international selection strategy for 2012 involved Informal more extensive use of new talent attraction I do a job that I like channels, such as digital channels and web 2.0, These are the key words characterizing thanks to the Shape your career international Indesit Companys value proposition as an employer branding campaign and its on-line employer that emerged from dialogue with organization. Indesit employees from different departments Alongside the focus on students and new and countries and university students and graduates to attract and train under career new graduates. programmes, the Group is constantly searching for specialists, professionals, managers with experience and seniority. At senior level, 2012 saw the introduction of 12 new key roles in the commercial, marketing and manufacturing and operations areas created to strengthen the organizational structure and respond with increasing success to new business challenges. 2012 was also characterized by the launching of an international employer branding campaign Shape your career - designed to boost the Companys notoriety and appeal as an international employer by stepping up talent attraction activities and creating networks of professionals. Employer branding: digital communication The communication strategy for the employer branding campaign was based on an integrated plan of on-line and off-line actions. The focal point of all activities is the Indesit & I - International Careers site, accessed via careers.indesitcompany.com. In seven languages (Italian, English, French, German, Russian, Polish, Turkish), the site is the main channel of contact and enables visitors to: see job or internship opportunities at international level and apply for them, or send cold applications; be updated on employer branding events the Company is taking part in; get information on recruitment, training and development procedures; hear 24 Indesit employee testimonials talking about their experience in the Company;
Shape your career
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learn about the characteristics of the various professional families in the Company; play the Shape your future on-line game to find out about the different sorts of career development available. The site also works through two internationally important social media: (www.linkedin.com/company/indesit-company/careers), where the Group has a corporate page for sharing content of professional interest (vacancies, video testimonies, news on employer branding events) to cultivate and extend its professional network; (www.youtube.com/user/IndesitAndICareers), where there is an Indesit and I repository with all the employer branding videos (such as testimony videos, university event videos).
Campus Program Integrated and in synergy with the digital communication, the Shape your career campaign also included over 100 corporate events at international level: career days, business cases, presentations and project work in collaboration with universities and business schools according to the consolidated model of the Campus Program, which is characterized by interaction and reciprocal development with universities in all markets where the Group operates (starting in the country where it originated). The Campus Program, in fact, is under a 3-year agreement with Universit Politecnica delle Marche providing for an innovative teaching facility in which an Indesit Faculty of Group managers integrate the traditional syllabus with lectures on subjects relating to some of the main business processes: from product development to sales via manufacturing, marketing and much else besides. THE SUCCESS OF SHAPE YOUR CAREER
The employer branding campaign and on-line and digital communication strategy received numerous awards and mentions in 2012. Desmo Award At the Plenary Session of the Forum Borsa Internazionale del Placement, 300 delegates from universities and businesses gave Indesit Company the Best Employer Branding award for its new international Shape your career campaign. Lundquist Social Media Awards Lundquist ranked Indesit Company in the six most virtuous Italian companies in terms of using professional networking platforms, in recognition of its networking activities and on-line media visibility, esp. Linkedin. Lundquist Employer Branding Online Awards 2012 Indesit Company ranked in the top ten in Italy for Employer Branding On-line activities on the basis of a survey by Lundquist of 100 companies. The Group was praised for the originality of its audio-visual communication and for navigation and usability.
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Equal opportunities
Indesit Companys human resources management works towards the integration and safeguarding of diversity and subscribes to ILO principles. In 2009, Indesit Company signed the Charter of equal opportunities and equality at work, an initiative promoted by Fondazione Sodalitas, AIDAF, AIDDA, Impronta Etica, UCID and Ufficio Nazionale Consigliera di Parit and supported by the Ministry for Labour, Health and Social Policies and the Ministry for Equal Opportunities.
2012
Employees by age, gender and title (no.) Management - of which women White collar - of which women Blue collar - of which women Total - of which women
< 30 years 0 0 806 422 2,213 636 3,019 1,058
30-50 years 109 17 2,900 1,148 7,476 2,583 10,485 3,748
> 50 years 32 2 630 195 2,165 534 2,827 731
Over and above normal application of the law, the Group seeks to safeguard womens jobs by facilitating part-time work for mothers. 88% of employees on part-time contracts in 2012 were women.
Part-time employees (%) Full-time Total Part-time Total - part-time men - part-time women Note: Percentages refer to employees in Italy, France, Spain, Switzerland and Portugal. 2012 96% 4% 12% 88%
Regulations on the employment of protected categories vary from country to country. In some contexts it is not possible to provide specific reporting because such categories are not legally recognized or because of local privacy law. The Group encourages the employment of protected categories in compliance with local legislation or adopts alternative measures to such end specifically provided for by law. In Italy, Indesit Company has entered agreements with the relevant authorities to favour the employment of people with disabilities in accordance with the provisions of law 68/99. To comply with protected category recruitment quotas in Russia, the Group also operates preferential selection of local suppliers who employ protected categories, thus defending and developing the value chain of local industry.
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Training
Indesit Company engages everyday with the effects of globalization and the growing influence of technology on work methods, the working environment and employees needs. Knowledge, ideas, intellectual property, the supply of excellent products and services: these are the indispensables that dictate Indesit Companys priority focus on training, to enable everyone (and future managers in particular) to create, innovate, learn, communicate, lead and co-operate with others, understand and rapidly adapt to change. The key evolution here was from the problem to solve approach (Problem Solving) to one based on opportunities to take (Appreciative Enquiry).
INDESIT FACULTY
Indesit Faculty is a network of managers (about 70 people of various nationalities) and specialists selected from different business functions on the basis of their knowledge to design and provide classroom training of other employees and channel peoples energies toward shared goals. Compared to other companies, this is an alternative approach to development processes and in-house training. Changing market scenarios (technological change, competitiveness, volatility, etc.), the way society is changing (new methods of interaction, of which young people in particular are carriers) and new needs for fast and direct learning have led to a revision of the managers role. In addition to doing business, managers must now provide for transfer of knowledge to others, with mutual enrichment. Teaching & Learning are two sides of the same coin, both rooted in Indesit Companys values.
This is the vision underlying the training offering, which starts on a persons first day at Indesit Company. A virtuous circle in which learners gradually become teachers, for the benefit of their own and their colleagues careers, and which involves all employees and channels their energies into shared objectives. Planning and implementation of training at Indesit Company is driven by a top-down strategy that starts by defining medium and long-term business priorities. This approach also involves listening to the requests of people who are plotting out their learning paths towards certain expectations (their own and the Groups) and take part in choosing the types of training to use. In the last four years, in fact, Indesit Company has also invested heavily in new technologies and instruments to meet peoples training needs by providing new methods of learning and interaction, to be carried forward above all by the younger employees. The architecture of the Groups training organization ensures that people are accompanied from Day 1 to when they take up positions of wide-ranging responsibility. In Indesit This is the integrated e-learning platform on the Group Intranet, available in real-time for around 5,000 employees worldwide. New entries can do a virtual tour of processes, businesses, people and places. In Indesit prepares new entries for induction and is currently in English, Italian, Russian and Polish. There are currently two modules on the Code of Ethics and Safety designed to periodically back up awareness raising campaigns addressing the entire workforce. Induction A 1-day training course for people whove been in the Company for 2 to 4 months. It contextualizes the virtual tour provided in In Indesit by introducing them to key Indesit Company people. They can also listen to other young people talking about their experience of the In Tune course (cascading transfer of know-how).
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In Tune This is a Made in Indesit international training course for young graduates from all countries and it takes place in three different geographical areas. In Tune is an exclusive and best practice training module in that it enables people to learn about the Groups basic processes and relative key factors in a mere six days. In Tune is conducted by managers from Indesit Faculty. In Spire This is a new-generation international training course for the professional development of young employees with growth potential and between 3 and 6 years experience in the Company. The objective of this 4-month course is to develop managerial attitudes within a framework of business acumen skills and patterns of conduct in line with Indesit Companys leadership model, of particular importance in this stage of development of future managers. In Vision Designed in collaboration with Indesit Faculty, this international training course addresses the key manager community on the advantages of strategic thinking (one of the main aptitudes in the Groups leadership model) as an instrument of development. The course content includes key factors and the approaches and instruments of strategic thinking to use for continuous improvement of business in the medium and long-term. The second part of the course is project work that puts the learnings of the first part into practice; its results are presented to the top management. In Catalogue Designed in co-ordination with all the training managers throughout Indesit Company, In Catalogue addresses the need to improve certain soft and hard skills relating to performance. Most users of this training package are white collars across all of Indesits sites in Europe. The courses are assembled in a single on-line catalogue accessible via the Intranet. Every year there is a Blended English course for those needing to perfect their English. 2012 saw the launching of a major training development, the International Blended Catalogue, a single on-line product for all Indesit companies which also ties in with classroom training in individual sites. In this way, a single company culture, starting with its underlying values and ethos, can be disseminated without sacrificing the diversity of individual sites and local cultures. Managerial training An important step forward was made in 2012 with the design of training for the Senior Manager community. This will not only develop strategic managerial skills for this category but will also broaden knowledge in certain areas to cope with the widening of responsibilities. There are also various masters courses, some in partnership with national and international business schools.
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Training (classroom and e-learning) Training hours
2012 368,000
2011 256,060
Per capita training hours by title (classroom and e-learning) Management White collar Blue collar Total
2012 10 17 25 23
2011 3 25 13 16
Note: Per capita training hours in 2011 have been adjusted following fine-tuning of the relevant monitoring system.
In 2012, there was an increase in the total hours of training provided, which was mainly on technical subjects. In addition to traditional training and e-learning, there was a conspicuous amount of on-the-job training (an estimated 240,000 hours), which is fundamentally important in professional development. Some of the training activities were subsidized: funding received by the Group for training purposes amounted to around euro 419,000.
Training hours by title 2012
0.4% Blue collar 20.4% White collar Management 58%
Training hours by theme 2012

7%
4% 1% 30% Occupational integration programs Managerial development and performance improvement Foreign language training Technical training Health and safety training
79.2%
Note: Training data do not include on-the-job training.
In 2012, regarding training on avoidance of corruption offences, 1,859 Group employees each received an hour of on-line training on the new Code of Conduct. The Code of Conduct training course is obligatory for all new entries and involves a final assessment.
Personnel assessment and professional development
In 2012, Indesit Company focused on reviewing, implementation and revitalizing its People Development Process to bring it further in line with market prospects and the needs of managers and white collars. The Company is consolidating a high performance culture based on feedback to give people opportunities to develop their capacities and forge a career. The People Development process is in fact three macro-processes perfectly integrated and rooted in the Companys philosophy. PERFORMANCE ASSESSMENT
Around 3,000 white collars were involved in performance assessment in 2012.
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Indesit Performance Feedback This has replaced the former Performance Management System and involves around 3,000 office staff and managers worldwide. The name change from Performance Management System to Performance Feedback reflects the importance the Company attributes to feedback, which is considered a key tool in human resources development. During this process, which starts at the beginning of the year, people define their individual objectives for the year and reach agreement over them with their superiors on the basis of team objectives to ensure compatibility. The system provides for a Mid-Year Check in which the team leader may decide to change objectives to adjust to new needs or business strategies. At the end of the year, the process closes with a self-assessment on the part of the employee and an assessment by the manager (hierarchical or functional, if any). The process may then go through a phase in which performance assessment is weighted by a calibration system (the new Lumesse tool) and meetings at department level (spring 2013 onwards). This system will make it possible to discuss assessments and obtain a final rating thats fairer and more accurate. Leadership Review This replaces the former Human Resources Review and is perfectly integrated with the Performance Feedback. Around 1,200 people in managerial positions around the world are assessed not only in terms of performance but also of leadership characteristics as defined in the Indesit Company Leadership Model. This assessment too is calibrated in meetings (Leadership Reviews), also on a crossfunctional basis to ensure greater sharing, coherence and objectivity. Communities Communities are homogenous groups for which training and career development paths have been defined on the basis of the particular characteristics of individual clusters: Junior (young people at the start of their careers), Professional (people with not only high performance and leadership qualities but also high level technical know-how) and Managerial (people with managerial characteristics). From those involved in the former processes, Indesit Company identified around 6% of the white collar population for inclusion in the Communities. Indesit Company Communities are also representative of the Companys diversity: Community members are Italian (69%), Russian (10%), Polish (9%), Turkish (4%), British (3%) and other nationalities (Austria, China, Portugal, Ukraine, Czech Republic). All these processes make it possible to develop people coherently through job rotation, promotion and specific training to ensure they are fully engaged in and aligned with the business. Every year, the focus is on the improvement, innovation and evolution of the processes in line with the needs of the business and its people. It is a very dynamic process and is reviewed every year on the basis of business requirements and strategy. The results of these processes are presented to the Human Resources Committee every year.
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INDESIT LUMESSE
Lumesse is an innovative new IT-based personnel management tool. It integrates performance and leadership assessment modules with others such as remuneration, career preferences, professional profile. The system works in various languages (Italian, English, Polish, Spanish, Russian and Turkish) and enables managers to obtain information on employees at any time and other employees to create their own profile and carry out a simple and complete self-assessment. It also enables HR Business Partners to analyze performance and leadership and give specific advice on people development.
Global skills development
The Group adopts an international job rotation policy as a tool for professional development and to encourage exchange of know-how among the various international units in the organization. This approach on one hand offers personnel an opportunity to gain significant international experience of use in their professional development and, on the other, it fosters the dissemination of know-how and the development of local skills. Job rotation may be in a persons own department or a different one and involves both management grades and junior profiles. In 2012, 2.5% of the Groups white collar and managerial population worked abroad, either on secondment (remaining an employee of the home company) or localized (becoming an employee of the foreign company). Secondment/expatriation generally lasts an average of two years. In a newly acquired or new start-up site, resources are usually brought in from other countries for an initial period. As the site integrates into the Group, the percentage of such resources is gradually scaled down to favour the development of local managers and specialists.
Local senior management Italy Greater Europe * Other countries ** 2012 99% 47% 71%
Note: Senior management means employees of executive grade or equivalent. Local means senior managers operating in their country of origin or in which they are resident. * Austria, Bulgaria, Germany, Spain, France, UK, Hungary, The Netherlands, Poland, Portugal, Russia, Sweden, Turkey and Ukraine. ** Switzerland, Argentina, China.
Internal Communication
Indesit Companys Internal Communication works constantly to: build knowledge of the business by helping to understand the evolution of its products and services through ongoing and wide-reaching information flows; heighten internal awareness of the Companys reputation; disseminate the Employer Brand value proposition; sharpen employees perception of the Companys human resources management, development and information activities; contribute to the communication and understanding of business strategies; support the Companys ambassador culture; facilitate the spread of new digital media as a means employees can use to promote the business.
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Intranet The Intranet portal Insight is a fundamentally important internal communication tool reaching 5,000 employees worldwide in either fixed or mobile mode. It provides various instruments offering information, guidance, active participation in company strategies, training, utilities for rapid exchange of information, and live and on demand video content, all of which with a bottom-up approach. Insight is also the main media for the house organ Flashnews, WebTV and communication campaigns. Its updated everyday by a central editorial team that validates contributions from local teams on the basis of an internal communication plan focusing on the Groups main strategies. Insights main objective is to develop a common corporate identity and help disseminate the Groups values. Indesit Web TV WebTV is one of the most recently developed instruments for engaging and informing people in the various countries where the Group operates. It is an integral part of the communication process supporting the departments with transmission of events in live streaming and on demand. The creation of Indesit Web TV required a high number of skills in terms of technologies, communication and training. The project has proved very important for costs optimization, capillary dissemination of know-how and proactivity and team working. Over 100 hours of video content were made available to all employees in 2012, with a focus on documenting the main business events, such as the Eurocucina expo and the inauguration of the new hood production lines in Poland. Flashnews Available to all employees on-line and on paper, the house organ is the main channel of communication between Corporate management and employees in the various industrial centres. Flashnews is published every four months, in five languages and with a circulation of 10,000.
Remuneration
Indesit Company has always invested in the economic and personal wellbeing of its employees, offering competitive wages and salaries and all possible conditions ensuring equal opportunities in the Company. The fundamental principles underlying the remuneration policy are transparency, compliance with regulations and the Code of Conduct, rewarding of achieved objectives on a pay-forperformance basis, and retention and motivation of a highly trained workforce capable of generating competitive edge for the Group and reflecting its values. Basic pay does not vary between men and women but depends on an individuals role and responsibilities. It reflects peoples experience and skills, levels of excellence shown and the general contribution made to the business. There is no discrimination in terms of race, age, religion or personal or social circumstances. In many countries, a minimum wage is defined by national or local regulations. In countries where there is no legal minimum wage, pay may be negotiated by employer associations and trade unions. A mapping of 97% of the workforce (including all the Groups main companies) revealed that the entry wage of blue and white collar employees is higher than the local legal minimum.
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The Group has an annual Management by Objectives incentive system for around 4% of personnel. The scheme varies with the importance of employees roles and their impact on the business. The parameters of the plan are generally quantitative performance indicators, which for some roles may include not only economic (eg. sales and margins) but also social and environmental indicators. For people in the Quality & Environment department, assessment is also based on environmental indicators for manufacturing (reduction of energy and water consumption and waste production in manufacturing), while objectives for those in the manufacturing area also relate to workplace health & safety (eg. accident frequency and seriousness). Benefit Indesit Companys remuneration policy provides for a series of non-cash benefits integrating employees remuneration (fixed and variable). Such benefits are designed to provide additional support for employees and, where possible, their families within the context of local labour markets, legislation and social security policies. Certain elements, such as canteen service, transport or extra-professional accident insurance are provided under internal guidelines applying to all employees, including part-time and temporary personnel, and subject to local practices. In some countries childcare and other services meeting family needs are made available. Status benefits, on the other hand, are linked to the importance of employees roles and may include a car and certain types of insurance. Regarding the latter, the Group engaged a broker in 2012 to guarantee a higher degree of centralized governance and to support individual markets in their operations in this area. A web platform was also implemented for the purpose.
Health and safety
Workplace health and safety conditions are vital to the achievement of excellence in corporate activities. For this reason the Group defines policies, procedures and responsibilities in compliance with local legislation. In 2012, the safety policy underwritten by the CEO in 2009 was reviewed and approved for 2013 as well. The Health & Safety department works to achieve the objectives of: promotion of a strong sense of personal responsibility in respect of the Companys health & safety policies; Group-wide governance on legal and regulatory Extension of OHSAS 18001 developments; certification has been extended to development of a system to manage health and safety 34 Group sites, including all of the issues; production sites and covering 94% of ensuring functional co-ordination of all Group offices total employees. operating in this field; implementation of environmental policies in close cooperation with the various functions concerned.
OHSAS 18001
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Following the completion in 2011 of the 3-year audit plan monitoring scheduled improvements to health and safety levels, in 2012 an audit plan was implemented for renewal of the OHSAS 18001 multi-site certification obtained at the end of 2009. The results of this were positive and the external certification organization issued new certification valid up to December 2015. To reduce accident risk to a minimum, Indesit Company adopts solutions based on monitoring of performance over the year but also takes preventive action by identifying potential accident risks and where they might occur. All the initiatives taken in 2012 were of this sort. Prevention of fire risk Use of purely mechanical equipment for packaging products instead of systems involving heat; a new system was introduced for all products at the Lipetsk fridge plant and partially in the washing machine facility, while its still in the approval stage for the other plants. Infrastructural work was done to improve electricity, gas and fire-fighting systems. Safe use of equipment and machinery Use of impact sensors on forklifts to detect incorrect manoeuvres and a safety system that prevents the vehicles being used by people not authorized because not suitably trained. The system is in service in finished product warehouse at Raunds in the UK and is under development for use in the Italian and Polish sites. Installation of additional protection barriers around machinery at the Manisa plant. Improvements to work stations and prevention Optimization of work station conditions, eg. noise reduction, ergonomics and temperature control; the ergonomic comfort index of 97 operators was improved under the project. Adoption of smaller packs for transporting production components so that handling personnel have lighter loads to shift and thereby run less risk of muscular damage. For employees with impaired hearing, special alarm systems for emergency situations and reduction of external noises.
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Performance in 2012
Indesit Company produces an HEALTH & SAFETY AWARD annual Health and Safety Report The Health & Safety Award is an annual award assigned to the production illustrating performance in terms plants with the best scores for accident frequency and severity indexes of personnel health and safety. The and other performance indicators. The 2012 Award was given by Indesit contents of the Report are defined Companys chairman to the washing machine plants in Radomsko (Poland) on the basis of OHSAS 18001 and Comunanza (Ascoli Piceno) and the hob plant in Fabriano (Ancona). A special award was given to the sales structure in the UK for having requirements and draw data from achieved improvements in around 40% of the safety indicators for the the health and safety management second year running. system (HSMS), local and corporate management reviews, individual site KPI reports and process audits. All industrial and non-industrial sites monitored the trend in accidents and their causes and defined objectives on the basis of Company health & safety policy, local regulations and the results of annual checks and activities carried out. 106 objectives were defined in 2012, with a success rate of 74%. The main results at the end of the year were as follows: in the industrial sector, the frequency index was down 28%, while the seriousness index rose 25%, reflecting an increase in long-term hospitalisations; in logistics and service (non-industrial sector), the frequency index improved by around 26%, while the seriousness index was down 30%.
Having no accidents at all has always been one of Indesits main goals. 14 sites achieved this objective in 2012.
Note: accident here means one that causes over three days absence from work.
0 accidents
Accident index by geographical area - industrial sector Frequency index Italy Poland Russia and UK Total Severity index Italy Poland Russia and UK Total
2012 4.2 0.7 0.8 1.8
2011 5.0 1.0 1.2 2.5
2010 8.0 3.7 1.2 4.4
0.19 0.08 0.04 0.10
0.12 0.04 0.06 0.08
0.29 0.15 0.09 0.18
Note 1: T he industrial sector in Italy includes the Manisa plant (Turkey) for organisational reasons. Note 2: The indexes are based exclusively on accidents that caused more than 3 days lost work. Note 3: D ata taken from the 2012 Annual Corporate Health and Safety Report, which includes data from the Companys monitoring system (OHSAS 18001 certified). Note 4: Frequency index: # accidents per year / # hours worked per year x 1,000,000. Note 5: Seriousness index: # days absence through accident per year / # days worked per year x 1,000.
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In 2012, the Groups professional disease rate (total cases of professional disease/total number of hours worked x 200,000) was 0.08, substantially the same as the previous year.
Absences by type, 2012
Illness 28% 27% Accident Strike Meetings and paid permits 2% 1% 42% Unpaid permits
Note: percentages relative to 97% of the population.
Health & Safety training for employees and the Community
Indesit Company makes sure that all operators, safety staff and managers receive adequate workplace health and safety training and are fully aware of the issues involved. In 2012, the health & safety training process was reviewed on the basis of an assessment of the necessary skills. The training plan was In 2012, 110,000 hours of training then developed for the following objectives: on H&S have been provided with an average time of 6 hours per-capita disseminate the culture of safety as the basis for all business operations; raise awareness of risks in the workplace and strengthen the capacity to identify and report them; make operators act as agents of prevention and active players in the management system; facilitate safe behaviour through functional integration of health and safety concepts with actual work tasks.
110,000
The duration, content and procedures of all safety training for employees (operators, safety staff and managers) were discussed in advance with company and local trade unions representatives. H&S COACHING PROGRAM
In Italy, the H&S Coaching Program involved over 2,600 employees across all the industrial sites. Over 20,000 hours of training were provided using highly interactive methods based on real cases and with a strong focus on risk assessment, reporting and prevention. The project led to over 2,000 improvement actions reported directly by employees which were then analyzed by the relevant managements and fed into the company plan for the purpose of ongoing improvement and sharing of results with the workforce. The H&S Coaching Program project also received a special award from Regione Marche for outstanding commitment to workplace health and safety and the professional development of the resources involved. All of which going to show that engagement and participation are key to the achievement of workplace health and safety objectives.
NO TECHNICAL SKILLS
Indesit also collaborated with Societ Italiana di Ergonomia to produce a course, No Technical Skills, held on 17 April 2012 at ASUR in Ancona. Addressing safety experts, the course explored the human factor and the cognitive, social and personal abilities (complementary to technical skills) that help ensure safe and effective work performance.
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Indesit Company believes that fostering a culture of health and safety outside work is also important and organizes initiatives to raise awareness among employees families and the communities close to the Companys plants. In Italy, an important agreement was reached between Associazione Jonathan Onlus, Indesit Company, the Juvenile Justice Department and INAIL Campania to launch a project funded by INAIL - Safety and Legality - that aims to educate young people with a criminal background on the importance of compliance with safety regulations as applied in the workplace. In Poland, under a lean production project in collaboration with d Polytechnic, 44 students were given a safety course on aspects common to both production techniques designed to improve efficiency and those that focus on workplace safety. Health & Safety committees Health & Safety committees are set up at local level as required by Indesit Companys corporate Workplace Health & Safety Management System (WHSMS). They have decision-making powers at individual site level and work to promote programmes to improve health and safety conditions and approve the results of the local WHSMS. These committees represent the entirety of employees who work at the site, being formed by the sites legal Health & Safety representative, executives, employee representatives, Human Resource managers and the heads of operating departments, offices and laboratories, as well as the head of the Prevention and Protection Service. Committees tasks are defined in a WHSMS procedure that also sets the minimum frequency of meetings. Such meetings are quarterly, though some organisations prefer their committees to meet monthly.
Industrial relations
Indesit Company has an industrial relations system structured to maintain correct and transparent relationships with employees (all covered by collective Group or company agreements) and trade unions, with which it enters agreements based on the principles of co-operation and social responsibility. In the case of business relocations, the Company starts talks with the unions (and the International Works Council where provided for) well in advance in order to identify the best solution possible, in addition to giving the minimum notice required by Italian law in writing, to trade union representatives at least 25 days beforehand and with reasons for the relocation and the legal, economic and social consequences for employees. On 15 November 2012, the International Works Council (IWC) was instituted with a protocol signed by the trade unions of all the countries where Indesit operates and by the Industriall European Trade Union and the Industrial Global Union. The IWC replaces the European Works Council to extend its geographical reach and involves the active participation of worker representatives from countries outside the European Union (Russia and Turkey). The new Council is thus formed by representatives of six countries (Italy, the UK, Poland, Russia, Turkey and France). Indesits agreement goes beyond European and Italian legislation and is the first of its kind in Italy. The IWCs rules, like those of the EWC before it, provide that trade unions must also be informed of and consulted on the introduction of new working methods or production processes that significantly affect the Group as a whole, as well as any changes to organizational and production structures that have transnational repercussions. The Groups instruments for managing organizational change are completed by the Redundancy
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Management model, which envisages a series of initiatives in favour of employees in cases of plant closure, ranging from job training (training and consulting for outplacement) to direct incentives and subsidies to companies that hire Group employees. The complex integration of production facilities in Italy initiated at the end of 2010 is a good example of this industrial relations philosophy. SOCIALLY RESPONSIBLE RE-ORGANIZATION
Organizational changes in recent years have involved employees in facilities in both Italy and other European countries. In managing scheduled facility closures, Indesit Companys objective was to guarantee maximum safeguarding of occupation, meaning the outplacement of workers. Following the decision to close the Brembate and Refrontolo plants in Italy, Indesit reached an agreement in December 2010 with the Economic Development Ministry, local authorities, employer associations and trade unions marking the start of the first large scale relocation policy in Italy. In addition to providing for investments of euro 120m in innovation and development projects in Italy, the agreement centres on the creation of regional technical committees for re-industrialization and personnel outplacement to protect occupation and the professional know-how of the employees from the production sites closed down. The conditions agreed with the trade unions included, among others things, that new jobs offered must be in the same district and also in line with employees professional training. As of December 2012, 370 of the 510 employees occupied in the Brembate and Refrontolo plants as of 31 December 2010 had been dismissed. Of those, 73 were outplaced to other companies, 224 were dismissed with incentives, 62 went into retirement and 11 were transferred to other Group sites. The same principles were applied in the shut down of production at None in December 2012 due to the unsustainability of production under the negative conditions in the dishwasher market. The agreement reached in October 2012 confirmed continuation of the Product Research and Development facility at None and identified measures to manage redundant personnel (site re-industrialization, redundancy schemes, outplacement with external companies and within Indesit Group). As of 31 December 2012, 55 people out of a workforce of 357 with the Company as of 31 October 2012 had been dismissed: 49 agreed to dismissal with incentives, five went into retirement and one was outplaced to another company.
Strikes and litigation
Discussion, engagement and participation in corporate choices on the part of employees prove effective ways to maintain a healthy climate and avoid conflict. In 2012, however, there was an increase in the hours of industrial action for reasons relating both to issues of nationwide importance and to matters concerning Indesit and in particular the closure of the None plant.
Hours of strike National strikes Company strikes Total hours of strike Note: figures refer to Italy only. There were no strikes in foreign sites. 2012 37,621 9,121 46,742 2011 19,620 3,782 23,402 2010 13,761 19,959 33,720
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For the same reasons, 40 legal actions regarding employment relationships and damages were brought against the Company by employees in Italy in 2012.
Disputes with employees by subject Professional level/tasks/contributions Biological and moral damage, professional illness, accident Disciplinary procedures, redundancy, damage from redundancy, reintegration at work Work relations Total Note: figures refer to Italy only. 2012 17 12 4 7 40 2011 17 8 4 4 33 2010 19 16 7 30 72
Regarding the foreign companies, (Russia, Poland and Turkey) there are eight disputes pending over professional grading, job responsibilities, social security and bargaining with trade unions, nine over biological and moral damage, professional illness, occupational disease and accidents and three over disciplinary matters.
Respect for human rights
Indesit Companys entire internationalisation and globalization process is driven by responsible awareness of its effect on the wellbeing of the communities in which it operates. Such responsibility is also seen in its commitment to the International Labour Organizations fundamental standards and on protection of the natural environment. In 2001, Indesit Company was the first to sign an agreement with the trade union organisations FIM/CISL, FIOM/CGIL and UIL/UILM and with the International Federation of Metalworkers Unions ensuring respect for fundamental human rights and the principles set forth in certain ILO conventions in all its plants. Under this international framework agreement, the Group also undertakes to require its direct suppliers to adopt the same principles. Every year, the trade unions who signed the agreement are provided with a list of Indesit Companys top 300 suppliers, while Indesit Company sends all new suppliers its Code of Conduct (which endorses the aforementioned principles) and requires them to sign it. In connection with the elimination of child labour and forced labour, the Group agreed with the signatory trade unions to: promptly intervene to remove any situations of non-conformity, through monitoring and control systems implemented by the National Joint Commission provided for in the company agreements; impose sanctions on suppliers who fail to comply with the principles in the child and forced labour conventions and also, in the worst cases, terminate contracts; monitor compliance of such principles in the Groups production units.
HUMAN RIGHTS IN AGREEMENTS WITH TRADE UNIONS

Indesit Company entered an agreement with the trade unions in 2001 to observe and enforce the following ILO conventions: no. 29 - no use of forced labour or working in conditions of slavery; no. 87 - freedom of association in trade unions; no. 98 - freedom of employees and employers to negotiate fixed and indefinite term agreements; no. 100 - no salary discrimination between men and women in the same grades; no. 111 - no discrimination on the basis of race, religion, political opinions or social origins; no. 135 - no discrimination or intimidation against employees representatives; no. 138 - no employment of children under 15 or in any case younger than the compulsory school age under local legislation; no. 182 - prevention and suppression of child labour.
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Customers
In 2011 we said that we would Customer relationships > Continue with the professional call center plan and extend coverage in Russia, Sweden and Turkey. Opened a call center for Sweden to cover 100% of customer assistance interventions. Call center coverage in Russia did not change in 2012 (a plan was drawn up to extend it from 70% to 95% in 1st quarter 2013). The opening of call center in Turkey was moved to 2013. Developed CRM in Italy (following implementation in 2011) and implemented it in the UK (Republic of Ireland in April, Northern Ireland in July, Scotland in October). In 2012 we
>
Continue development and implementation of Customer Relationship Management (CRM) for effective management of the consumers experience of Indesit Company.
Goal reached Goal partially reached Goal failed
For the future, we want to... Customer relationships Extend call center coverage in Russia to 95% of total assistance interventions. Open a call center in Turkey to cover 80% of total assistance interventions. Open a call center for Northern Europe to cover 100% of total interventions in Germany and Denmark. Implement the CRM system in England and Turkey. Quality Reduce the defect rate of products in the 1st year of guarantee to around 8%.
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Quality and innovation for customers needs
Indesit Company sees innovation as the key to sustainable creation of value over time: innovation is a process that ISO 9001 certification has been encompasses the entire life cycle of products, from design extended to 34 Group sites, including to disposal, and is driven by priorities such as care for the all the production facilities. environment, ease of use, ergonomics and flexibility. Indesit Company is working on a number of projects relating to smart technologies employed to develop new functions in the field of Ambient Assisted Living. Intelligent and interconnected appliances play a central role in the domestic environment, ensuring comfort, efficiency, usability, safety and interoperability with the outside world.
ISO 9001
How innovation is generated in Indesit
26 million euros
invested in R&D activities
over 90
patent applications filed (over 60 foreign extensions of Italian applications filed in 2011)
over 600
people engaged in R&D
Open innovation
Technological roadmaps
The idea, classified by degree of maturity, technicaleconomic risk and influence on the product and target, is monitored over time
Operating workshop
The viewpoints of the various functions are harmonized; ideas are enriched with new content; costs/opportunities of each idea are assessed, priorities are defined and an inter-functional team is created to accompany the idea on its course
Prototype
A prototype is made on the basis of the identified needs of the targeted consumer and coherence with the brand and consumer relevance
An idea stems from insights by Indesit teams and contamination from outside
Exploration
Technological feasibility is refined and a business model or an alternative way to meet the same need is defined
Screening
Idea day
The teams present ideas to a vast audience, using prototypes, business cases and cost/investment estimates
Product development
The Screening team decides what will proceed to the Exploration stage
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The main projects launched by the Company are as follows: Wi Fridge To reduce wasting food and the social and environmental impacts it entails, this project aims to produce a monitoring system for fridges in which smart phones will communicate foods best-by dates and items entry and exits will be logged. VID The VID (vacuum insulated door) project seeks to increase the energy efficiency of fridges by finding other technologies to replace the insulation properties currently provided by expanded polyurethane. This innovation will deliver considerable energy savings, also from the industrial process point of view. FOOD The FOOD project aims to preserve and increase the independence of people who still have a sufficient level of autonomy. The solution is based on the integration of sensors and intelligent home appliances and web-based services and applications for information and communication in various social fields. Data supplied by sensors placed on people and in the environment and cooperation between artificial and human intelligence on the network will help to develop a service supporting the independence of people with difficulties. Peoples quality of life will also improve thanks to the intensification of interaction with the outside world afforded by the internet. In 2012, Indesits Cooking business unit worked on the project to guarantee integration of the communication systems developed for the new Luce electronic oven. The system will transform the oven into a smart appliance capable, together with other sensors, of being more useful in the home, with web-based services and applications giving access to communication and information in various social environments. For ovens, for example, it will be possible to download recipes and cooking cycles, share information with other users of the same system, and get information on using the oven and controlling its consumption. Trials will be run to gather information on use of the system and its performance to assess its actual efficacy. JADE Indesit Company is also participating in a European research project JADE promoted and coordinated by Regione Marche to develop a technological district in support of active autonomy for the elderly. As life expectancy rises, the population gets older and social costs rise. This means it is necessary to safeguard health and quality of life, above all through active prevention of chronic illnesses. This is done by developing web based domotic technologies that enable the elderly to live in their own homes in safety thanks to tele-assistance and tele-medicine which not only safeguard health but reduce the need for hospitalisation and relative costs. In collaboration with the districts of Kent (UK), Helsinki (Finland), Grenoble (France) and Istanbul (Turkey), JADE is aiming to develop a common research agenda and a joint action plan to define European policies to support promising Intelligent Ambient applications, especially for the old. Indesit has a twofold objective in this context: on one hand to participate in Europes most innovative and competitive platforms to create new opportunities for financing innovation, and on the other hand to promote a new role for the web-connected
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appliance, that of communicating interactive events to help monitor users daily activities and detect anomalous behaviour that might lead to situations of stress or danger. Appliances would thus be acing as life sensors for old people living on their own. One of the first fruits of JADE is a new funded project presented in 2012, HicMO, which is natural development of JADEs philosophy and aims to generate new collaborations and projects in the fields of health and Ambient Assisted Leaving. HicMO The HicMO (Hic Manebimus Optime - Well be very well here) project was launched in the 1st quarter of 2013 as a collaborative effort between Regione Marche, Indesit Company, other local companies and Universit Politecnica delle Marche. Its main objective is to design and develop a platform of products and services that will facilitate, through the use of new technologies (and telemedicine in particular), a rational review of the distribution of social and health resources for the elderly, a population characterized by chronicity, fragility and disability. HicMO aims to propose innovative models to help modernize the health system and its consolidated welfare practices, not only in hospitals but also at home, by pursuing the objective of improved efficiency and lower costs. HicMO will operate in various scenarios. In modern, wired and intelligent homes, it will be able to operate synergically by integrating the base cell (the smart home) at different levels of aggregation (smart building, smart city, smart grid). In the case of existing homes, it will be able to create a domotics system to guarantee domestic appliance functioning. The fridge, as one of the smart objects in todays homes, can act as a vitality sensor, help the user if programmed interaction doesnt occur (eg. remote control of failure to take medicine), and enable temperature monitoring of specific spaces (eg. for keeping medicines). Smart home 2012 saw Enexis (a Dutch energy distributor) launch Your Energy Moment (Jouw Energie Moment), a pilot project in which Indesits experience and technologies are involved. In three areas of The Netherlands, the families taking part in the project will be equipped with an energy computer, an energy display and a smart washing machine. With these tools they will be able choose how to consume energy according to their needs. And thanks to real-time availability of forecasts of local green power generation (solar panels), electricity costs on the wholesale market and extra-costs for using supply when the grid is under high loads, they can set their preferences from the display of the smart Indesit washing machine, while the technology employed for communication between the smart washing machine, the energy display and the energy computer automatically regulates the machines operation. In particular, the smart washing machine makes it possible to calculate, display and send consumption data before and during the wash cycle, estimate the cost of the chosen cycle, display the homes total energy consumption, co-ordinate with other connected household appliances to optimize domestic consumption and programme washing according to costs and consumption preferences. The pilot project will run till December 2015.
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eKitchen In the eKitchen project, Indesit Company is developing a new kitchen environment that will be a model for the future. It looks at three different levels of interaction between machine, man and environment. In the case of machine-environment interaction, the objective is to develop innovative domotics devices in which efficient communication between appliances makes it possible to monitor and optimize energy consumption, control other devices to ensure a safe environment, monitor operating parameters and carry out troubleshooting and self-repairs. In man-machine interaction, the focus is on the usability of kitchen appliances and furniture, to develop a centralized system for easy and rapid use of information and full, ergonomic availability of all kitchen space. And in man-environment interaction, the aim is to define the spatial layout of the kitchen to make daily activities safer and develop technologies for monitoring users behaviour, keeping vital parameters under control and signalling the need for assistance. In the latter case, the appliance becomes a life sensor that measures frequency of use by the user. VERITAS The European VERITAS project (Virtual and Augmented Environments and Realistic User Interactions To achieve Embedded Accessibility DesignS) aims to develop, test and assess instruments supporting all the phases of product development, including specifying, design, development and testing. The objective here is to guarantee that products and services in the automotive, smart living space, healthcare, workplace and infotainment industries are systematically designed for everyone, including those with functional disabilities or limitations and the old. In this project, Indesit Company intends to integrate VERITAS instruments with other existing ones to improve the accessibility of its own products and bring Design for All closer to reality. HOTPOINT INNOVATION AT EUROCUCINA 2012
At the 19th Eurocucina, the renowned international kitchen expo, Indesit Company was once again one of the protagonists, presenting industry operators and the general public with new built-in product lines from its Indesit, Hotpoint and Scholts brands. At the centre of the event were the most innovative products. In Hotpoints new cooling range there was the innovative Active Oxygen system, an exclusive device that releases active oxygen in the fridge to prevent the development of micro-organisms and bad odours, thus ensuring ideal conditions for preserving 1st day freshness for up to nine days. The effectiveness of Hotpoints Active Oxygen was tested in terms of antibacterial performance, elimination of odours and extension of food shelf-life and demonstrated with the help of external organizations (prestigious national institutes) and Hotpoints own research laboratories. The Expo also saw the debut of the Hotpoint Innovation Area 2012, a project developed with a leading design firm to show how connectivity will redefine space in the homes of the future. Using a single interface to control all a homes appliances, it will be possible to have all the information needed for that purpose instantly available on a tablet, smart phone or other device.
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Consumer safety
Product safety - and therefore consumer safety - is an absolute priority. When a sold product shows a potentially risky defect, the quality of retailer relationships can be decisive in rapidly identifying and remedying risk situations. All products are traceable to a particular production batch, enabling rapid intervention on quality issues. To ensure the quality and safety of its products, Indesit Company not only complies with all the legislation regulating the industry but also looks at the entire production process. All the Groups main activities are covered by the quality management system. In particular: during the new product development phase, Preventive Risk Assessment (PRA), a methodological tool, is used to identify potential sources of risk in the product (even where the probability of occurrence is very low) and calculate an overall risk index, which has to be kept within a predefined limit; prior to entering the production phase, all components must obtain quality and safety certification issued by international bodies; products also undergo screening at the Product Qualification Centre and the more innovative ones go through further quality, reliability and customer satisfaction field-testing (in which a panel of consumers use them) and packaging and transport tests; automatic tests are performed on electrical and gas circuits throughout the entire production cycle to immediately filter and correct any defect and thus obtain safety certification for 100% of the products; before releasing goods onto the market, samples are subjected to extensive testing, including product safety tests; during the finished product handling and distribution phases, the necessary rules for guaranteeing the product against damage are applied and checked; once the product is released onto the market, there is ongoing monitoring of events on the market that might suggest a risk situation, so that containment and remedial action can be taken where necessary. An example of this focus on quality may be taken from 2012, when reports from the after-sales and retailer networks in the UK identified a potential safety risk (classified as low) in a batch of around 71,650 dishwashers produced between June 2006 and March 2007. To reduce the safety risk for the consumer Indesit ran a campaign, in agreement with the local authorities, to repair the products involved using the UK Service structure (campaign still in progress).
PRODUCTS THAT SATISFY CUSTOMERS

Indesit Companys quality management process is completed by customer satisfaction analysis. Customer satisfaction surveys conducted in the Italian and UK markets identified the strengths and areas for improvement of certain products (fridge-freezers, washing machines, dryers, built-in ovens and dishwashers) and the drivers on which to concentrate future efforts to meet market expectations and tendencies. The surveys looked at consumers who had bought Indesit and Hotpoint products some time ago (from 6 to 8 years) and recently (from 1 to 2 years). Respondents were given a questionnaire in which they had to assess various product quality parameters, such as reliability, energy consumption and ease of use on a scale of insufficient to excellent. The average satisfaction index for consumers who had been using a large Indesit Company appliance for 6 to 8 years was 75.6 (on a scale of 0-100), which is in the Very Good bracket. The index for consumers whod been using one for 1 to 2 years was 78.5.
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Guaranteeing product quality
Numerous projects to ensure product quality and reduce the defect rate were implemented in 2012. As a result, the reduction in the defect rate defect rate of products in their first year of guarantee was of products in their first year lowered with respect to 2011. The main projects carried of guarantee forward over the year, in addition to the definition of a new procedure for developing new products based on interfunctional work groups, were as follows: Daily Calls Monitoring, a call center monitoring system that tracks any reports of malfunctioning of products from clients and facilitates rapid processing of problems; recording of the characteristics of components mounted on every single finished product, to guarantee traceability; in 2012 activities were completed at Yate and Manisa, and implementation of the system will continue in 2013; creation of laboratories and methods for testing and type-approval of products purchased directly from external suppliers following the development of the Small Domestic Appliances (SDA) business. Suppliers production processes were examined in depth and both products and processes underwent stringent defect risk assessment and where necessary action to reduce it; Supplier Quality Excellence: using in-house analysis and benchmarking with the relevant manufacturers, this project defines opportunities for the evolution of functions and business processes that affect the quality of supplies; a working plan was drawn up to achieve advanced standards.
-7%
Red dot Design Award 2012

The Luce line Direct Flame hob and Mono Knob oven won this international award for quality design
Indesit Companys objective is also to achieve the highest standards of excellence in terms of finishing and consumers perception of quality. In this field, the AEREA (AEsthetic REview Activities) project aims to raise the level of products aesthetic finishing by developing new design solutions and improving industrial processes.
ILLYCAFF AND INDESIT COMPANY TEAM UP IN THE COFFEE MARKET

illycaff, a leading name in coffee and coffee culture, and Indesit Company entered an agreement to produce and distribute a new line of home espresso machines, Hotpoint for illy, based on illys Iperespresso system and Hotpoint technology and design. The operation is the first of its kind and enables Indesit Company to start widening its sphere of action to related fields.
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Relationships with dealers and customers
The Group continues to develop co-operation projects with dealers, who constitute the first point of contact between Indesit Company and the end user. A transparent sales policy was adopted to create long-standing relationships and achieve rapid problem-solving and first class professionalism. In addition to meeting distributors at leading industry fairs, the Group organises events in individual markets where it operates. With its products, Indesit Company also supplies exhaustive information on correct use, precautions to take and tips for optimum performance. And to help customers choose products, all Group appliances carry energy labels and health & safety warnings. Full information on correct use of product is provided both in the instructions for use and online.
Fair relationships with customers has always been one of the pillars of Indesit Companys philosophy. In the UK, for example, the National Measurement Office became aware of the sale of a particular washing machine model carrying an energy label that didnt match its actual consumption. Indesit immediately agreed with the authorities to adopt a series of corrective actions to upgrade the in-house process for testing products energy INDESIT COMPANY COMPLAINTS MANAGEMENT consumption (making it even more The Group constantly monitors and classifies complaints in all European countries. accurate) and sent vouchers to Customer Service is committed to solving customers issues right from the first contact, which customers whod purchased the is via phone, e-mail or letter, and has procedures for fast processing of issues in the relevant areas of the organization. Indesit Companys corporate website has had a section for dialogue product and could be traced to with the top management since 2009, which shows how important relationships with consumers compensate them for the energy are considered. Their remarks and suggestions provide vital feedback for continuous theyd consumed in excess of the improvement. rating on the energy label.
After-sales support
Indesit Company has direct contact with the end users of its products through various channels, ranging from websites and call centers to customer care services. In this field, the Group adopts a management policy aimed at ensuring direct contact between the company and the consumer. In the awareness that the Groups after-sales service overall average time taken provides more effective support to customers than a to solve problems generic service or a distributor, Indesit Company developed an efficient after-sales assistance system for both the initial contact and the technical assistance phases. In February average wait for a visit 2012, the Paris call center extended its operations to cover from a engineer 100% of service interventions in Portugal (previously handled by the Hungary call center) and in March to cover 100% of interventions in success rate for problems solved Sweden. on 1st visit Regarding the solving of customers problems, the Group continued to invest in call avoidance, ie.
around 5 days
around 2.5 days 75.2%
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solving problems on the phone to avoid having to send an engineer to the customers home. In 2012, the Call Avoidance result improved with respect to the previous year thanks to continual improvements to the problem solving Web platform developed in previous years on the basis of a failure/solution tree logic.
Dialogue with customers
Indesit Company has been analyzing customer satisfaction levels regarding the call center service and after-sales technical assistance every year since 2002. Customer satisfaction is monitored on a monthly basis in 14 markets where the Group has a technical assistance network to assess the main factors influencing customer relations, which are: the contact phase, where the customer calls the Groups technical assistance service; the technical intervention phase, when the technician works at the customers home. The results of the 2012 phone interview survey were very positive, reaching a score of 78/100 for the contact phase and 80/100 for the intervention phase, which is very good in relation to the benchmarks used by the research firm that conducted the survey.
Suppliers
In 2011 we said that we would Sustainable supply chain > Obtain self-assessments from all new suppliers of direct materials, finished products and logistics also on environmental, ethical and safety matters. Obtained Self Assessments from 14 new suppliers of direct materials and 18 new suppliers of purchased finished products (indirect) using the new version of the Check-list updated on environmental, ethical and safety matters. Enriched the supplier self-assessment document with four new sub-sections on Governance, Health & Safety, Environment and Energy. The new version was codified and loaded in the DMS (documentation management system) and a read-only version was published online in the Supplier section of Indesit Companys main website. Conducted the first on-line survey of all suppliers of direct materials to map their sustainability initiatives and programmes (in progress or planned). In 2012 we
>
Improve the part of the self-assessment on ethics, environment and safety by adding a section on Energy and expanding the one on Ethics.
>
Run a survey involving all suppliers of direct materials to map their sustainability initiatives and programmes.
Goal reached
Goal failed
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>
Run a survey to identify strategic suppliers who excel in environmental responsibility.
Launched the Environment Project, reserved for Indesit Company strategic suppliers, to identify any that excel in environmental responsibility. Joining the Environment Project entitled suppliers to compete for the award of the same name, announced at the 2012 Strategic Suppliers Convention. Activated a channel of communication with suppliers to exchange information on the RoHS 2 directive. 65% of direct materials suppliers used it to update their declarations. Put the Product Quality Plan (PQP) on the Supplier Collaboration Portal for the sharing of the Suppliers Manufacturing and Control Plan. 40 suppliers were activated in 2012. Increased the number of suppliers active on the Supplier Portal from 70% of procurement turnover in 2011 to 77% in 2012. Though the increase is substantial, the objective was not fully achieved due to the closure of 22 suppliers who had been on portal.
>
Open a new channel of communication with suppliers to exchange information on the RoHS 2 directive and obtain updates of suppliers declarations of conformity. Introduce the Product Quality Plan in the Supplier Collaboration Portal.
>
>
Increase the number of suppliers active on the Supplier Portal to 80% of procurement turnover.
Goal reached
Goal failed
Note: r egarding one of the objectives stated in the 2011 Report - Obtain signings of the General Conditions of Supply by suppliers representing 70% of Indesit Companys procurement turnover in 2012 it was not possible to provide a follow-up because of problems with the relative monitoring system.
For the future, we want to... Publish guidelines on the RoHS Directive 2011/65/EC and on the European REACH Regulation 1907/2006. Obtain signings of the General Conditions of Supply by suppliers representing 47% of Indesit Companys direct materials procurement turnover. Obtain signings of the Code of Conduct by Indesits main indirect suppliers. Increase the number of direct suppliers monitored on possession of quality, environment and safety certification. Produce a new edition of the Environment Project for strategic suppliers. Repeat the sustainability survey for all direct materials suppliers to track changes with respect to 2012. Increase to 90% of revenues the number of suppliers active on the Suppliers Portal. Implement the e-sourcing and vendor management part of the SRM project (Supplier Relationship Management). Activate 25 Product Quality Plans (PQP) on the Supplier Collaboration Portal over 2013. Activate a new communication channel reserved for indirect suppliers (e-mail: indirectsourcing@ indesit.com).
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Quality and transparency in procurement processes
Indesit Companys dealings with the supply chain are characterized by transparency, co-operation, legal compliance, attention to suppliers needs and care for the environment. It always aims to establish relations with suppliers who share the same principles, with a view to ensuring stable relationships based on the creation of mutual advantage over time. The Group is committed to using management practices that directly and indirectly make its partners aware of the need to operate responsibly. The criteria Indesit Company applies in its supplier selection also involve assessment of suppliers social and environmental responsibility policies. In line with its Code of Conduct, the Group only enters supply contracts with companies that subscribe to the Code. For example, suppliers must observe the rules disciplining relations with public administrations, confidentiality and the ILO Conventions, all of which of particular importance in spreading socially responsible practices. The Group selects its suppliers by assessing objective elements such as quality, innovation, costs and services but also considers ethical values such as: respecting human rights and all the laws, and environmental standards in particular, in the country(ies) where the supplier works; fair, transparent and loyal behaviour and good faith in conducting business relations.
Certified suppliers
(in %)
Responsibility in supplier selection
2010 2011 82 82 83 2012
100
80
60
40 26 23 25 20 1 1 2 1 1 1 EMAS 4 7 8 ISO14001 n.a. n.a. 4
SA8000
OHSAS
ISO9001 ISO/TS16949
Note: P ercentages in 2012 based on a sample of 476 suppliers of direct materials out of a total of 781 suppliers of direct materials active in 2012.
During the selection process, all new suppliers are assessed on their approach to the environment (compliance with environmental regulations), ethics (compliance with the Code of Conduct) and safety (compliance with health & safety standards) by means of a self-assessment questionnaire made available in the supplier section of the corporate website or by post. By filling in the checklists, suppliers certify their compliance with organisational, process and technical requirements as well as with the environmental and workplace safety regulations and ethical standards defined by Indesit Company. The supplier/process qualification format, to which questions were added in the new Governance, Health & Safety, Environment and Energy sections in 2012, was loaded in the DMS (Document Management System). This format is available in a read-only version in the Supplier section of Indesit Companys main website via the link: www.indesitcompany.com/inst/it/suppliers/becoming_supplier/qualificA.jsp.
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SUPPLY CHAIN CONTROL

In 2012 (and up to early February 2013), the Ethics, Environment and Safety self-assessment questionnaire was completed by 50 direct suppliers and 18 purchased product suppliers in addition to those already responding in previous years. All new suppliers did the questionnaire. Direct suppliers are also obliged to comply with certain qualitative standards that the Group monitors periodically through its Supply Chain Quality department. Audits analyze the quality of suppliers organization, production processes and conformity to technical specifications. No human rights issues were identified during the supplier qualification processes in 2012.
Relations with suppliers and stimulation of the local economy
Indesit Companys procurement policy is also geared to the development of local economies, which it can stimulate by selecting suppliers located strategically close to the Groups production units. This approach helps create a consolidated industrial fabric serving the Groups business development plans.
Purchases by geographical area
(in %)
50 44 40 42 38
2010 2011 2012
30
20 12 12 12 10 1 1 1 Italy France 4 4 4 United Kingdom Poland 9 7 8 6 6 7
17 17 17 9 10 12
Russia
Turkey
Other UE
Extra UE
Note: Figures refer to amounts billed by suppliers of direct materials.
Communication and dialogue tools
Indesit Company uses various co-operation tools to maintain transparent and long-standing relationships with its partners. One of the most important is the Supplier Collaboration Portal, where the Group and its suppliers exchange data and information. Suppliers may directly access various on-line services in real time (e.g., mandatory delivery programmes and forecasts, forwarding of shipment bills, checking the status of invoices, etc.) with obvious benefits in terms of efficiency, speed and reliability of the data exchanged. Indesit Company has invested a great deal of energy and resources in the Supplier Collaboration Portal over the last three years and suppliers representing around 77% of its revenues had migrated to the portal by the end of 2012. Positive feedback from numerous suppliers is a clear signal that investing in tools of this type is a good policy for the coming years too.
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SUPPLIER AWARDS FOR THREE STRATEGIC SUPPLIERS

On 5 December 2012, Indesit Company invited its top industrial partners to Fabriano, as customary since 2007, to share strategies and reward excellence. Representatives from 72 of Indesits strategic suppliers attended the convention, during which Indesit Company gave the 2012 Supplier Awards to three companies that had shown outstanding innovation capability, quality and environmental sensibility. The Environmental Award was assigned on the basis of a project of the same name in which strategic suppliers were invited to inform Indesit Company of initiatives to reduce their environmental impact carried out in 2011 or scheduled for 2012. Themes included purchasing and use of energy from alternative sources, installation of alternative source power generation plant, zero-emissions projects, energy self-relaint plants, projects to cut energy consumption, development of new ecocompatible products, use of bio-ecological materials, environmental projects undertaken with sub-suppliers and other initiatives. The Award went to a transport company for its project to reduce annual CO2 emissions, which contributed to avoiding over 125,700 tons of CO 2 emissions a year.
In 2012, the Product Quality Plan management feature was added to the Supplier Collaboration Portal for the purpose of sharing the Suppliers Manufacturing and Control Plan regarding supplies for Indesit Company. This is designed to improve communication between Indesit Company and suppliers, especially on matters of control methods and process improvement activities. 40 suppliers joined the system in 2012 and a further 25 are expected in 2013. The portal is used to communicate requirements forecasts, production orders, withdrawal orders, stocks situation, invoices, etc., which means improved efficiency and efficacy for both parties compared to traditional e-mail/phone communication. The portal transfers the information directly to the SAP system. A web portal was developed in 2012 for collaboration with all the purchased product suppliers, including the makers of small domestic appliances who will be supplying Indesit. Lastly, work continued in 2012 to upgrade tools for dialogue with suppliers, also in response to new environmental legislation. European REACH Regulation As provided for in the REACH Regulation, Indesit Company continued to monitor the supply chain in 2012 by means of the REACH portal, where all suppliers, following updates to the Candidate List by the European Chemicals Agency (ECHA), are invited to update their declarations relative to the products supplied, and of the mail address [email protected], which acts as a helpdesk for suppliers. Response times are usually between 24 and 48 hours of receipt of input from the supplier. Support activities regard both the management of the supplier profile on the REACH portal (reporting of technical problems, sending of login data, information and assistance on compilation) and requests for information on the Regulation and its updates. Also in 2012, the Focal Points of the Companys REACH Team attended a new course entitled The REACH Regulation for electrical and electronic equipment. The course was held in August and was exclusively for Indesit Company. The instructor spoke about issues that could be relevant to our products. The participants were issued with a certificate. RoHS Directive Early in 2012, ahead of the coming into force of Directive 2011/65/EC (which updated Directive 2002/95/CE), Indesit Company activated the e-mail address [email protected] and immediately used
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the new channel to request RoHS declaration updates from all suppliers of direct materials. To make the data easier to understand, especially when relating to articles supplied in accordance with the exemptions provided by the Directive, suppliers were sent a standard form enabling them to send back (with a simple click), a pdf scan of the original signed and stamped RoHS declaration and a copy of the spreadsheet data. RoHS declarations are stored in the [email protected] database in the Companys network. Over 2013-14, Indesit Company will improve the current supplier relationships management method by implementing an SRM (Supplier Relationship Management) type IT system. This will cover four areas: eSourcing, Contract Management, Vendor Management and eProcurement, as follows: eSourcing will improve collaboration tools and on-line purchasing and enable the process of information exchange with suppliers to be more effectively structured; Contract Management will improve the process of creating, sharing and storing contracts with suppliers and make it possible to improve the organization of authorization and distribution of contracts guaranteeing the parties involved; Vendor Management will enable control of supplier life cycles and enhanced structuring of supplier qualification and monitoring activities; eProcurement will improve the management of purchase orders and purchasing channels, such as catalogue purchasing. SUSTAINABILITY SURVEY
In 2012, Indesit Company set up a new channel for dialogue with suppliers on sustainability. In addition to a dedicated e-mail address ([email protected]), Indesit Company engaged a web provider to conduct an online survey, with restricted access, via a link sent by e-mail. Its a sort of census and serves to get to know direct materials suppliers on the sustainability front, starting with their reporting procedures and publication of a sustainability report. The same survey will be sent to all direct materials suppliers in 2013.
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Community and territory

In 2011 we said that we would Supporting the community > Continue the Jonathan project under an INAIL workplace safety project and at the 2012 Regata dei Tre Golfi (in which Team Mascalzone Latino will be taking part). Carried forward the project, enabling four young people from Associazione Jonathan to take part for the third year running in the Regata dei Tre Golfi in a boat belonging to Mascalzone Latino: they finished at the top of the cruise category and 19th overall. Extended the project to the Radomsko facility, where the 6th edition was launched in 2012. In December, Indesit Company Poland received a Golden Rod for the project. This award is assigned by Partnerstwo dla odzi (an organization that works with institutions, foundations and political bodies and is sponsored by the Polish Ministry of Labour) to entrepreneurs or companies who do outstanding work for social initiatives. Continued collaboration with Sodalitas and commitment to the CRESCO project. Regarding the latter, the Company took part in two training events on sustainability for citizens in Calusco dAdda (BG) and Carugate (MI). In 2012 we
>
Extend the Jonathan Poland project to the Radomsko facility.
>
Continue to support local communities by promoting and participating in initiatives by Sodalitas (Sodalitas Social Award and CRESCO) and other associations.
Goal reached
Goal failed
For the future, we want to... Supporting the community Continue to support the Jonathan community by funding participation in the 2013 Regata dei Tre Golfi and other initiatives. Carry forward the Jonathan Poland project. Continue to take part in Sodalitas.
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Indesit Companys approach to the territory and communities where it works is based on scrupulous respect and fairness towards local government and authorities and civil society. Basing itself on such values, it seeks to reconcile opportunities for mutual development and the particular needs of communities to understand and support. Supporting communities through social initiatives, transferring good sustainability practice to citizens and dialogue with local businesses are all in line with the philosophy of the Group, which sees social responsibility as an integral part of its mission, values and strategies.
Supporting young people
Indesit Company continues to support the Jonathan Project, launched 14 years ago in co-operation with Associazione Jonathan Onlus to help young people with social and judicial years of Jonathan problems re-integrate in society through the use of innovative educational tools. The Group continued to support it in various ways in 2012. In February, a protocol of intent for the Safety and Legality Project was signed by Indesit Company, Associazione Jonathan, INAIL Campania (which funds the project) and the Justice Ministry (Juvenile Department). The aim of the initiative is to educate young people with a criminal background on the importance of compliance with safety regulations as applied in the workplace. Indesit organized two days of training on the main concepts of workplace safety and demonstrated their practical application on the production lines. The 5-hour sessions were in three parts: illustration of the production facility and the theme of workplace safety, a visit to the Teverola plant with practical demonstrations of safety procedures, equipment and behaviour and, lastly, a questionnaire type test on the concepts involved. In September 2012, a documentary on the Jonathan Vela project, Mayday, directed by Matteo Barzini and Francesco Ricci Lotteringi and dedicated to Giuseppe DAvanzo, was presented. In 2013, the Italian Navy will take part in the project by supplying boats and personnel to help eight young people from the community prepare for the next Regata dei Tre Golfi and all the spring regattas, such as the Velalonga and others along the Campania coast. The project was also carried forward in Poland (where it started up in 2011) with the collaboration of the Justice Ministry and the Ja and Magosia Foundation.
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In 2012, for the 6th year running, Indesit provided vital support to the public orphanage in d, which has over 25 young children and adolescents needing various sorts of help. For Christmas, the Group gave the orphans all the school materials that they were lacking.
kids supported in d
25
Promoting equal opportunities
The Group supports a co-operative called Chance, a major project of the International Women Association, which was set up in d in 1992 to promote female entrepreneurism, equal pay and opportunities for women and the creation of new jobs. In
Angel
of Chance
52
recognition of its commitment, Indesit Company received the title of Angel of Chance. Together with other companies in d, Indesit was involved in numerous projects and promotional initiatives to raise funds for the rebuilding of the co-operatives headquarters. Thanks to al these activities the project was carried forward and is now nearing completion.
Training young people
The Indesit Academy, a special platform the Group created for Krakw University of Economics, Polands biggest university, students at Indesit continued to operate throughout 2012. Two academies were held, Academy each for around 60 Krakw University students, who were able to visit the Radomsko facilities and see various business process from close up, including human resources management, planning and control, logistics and communication. At the end of the various workshops, the student were give certificates of participation and the best also received prizes.
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Safeguarding the environment
Together with 22 other companies, Indesit participates in the CRESCO Compatible Growth Project promoted by Fondazione Sodalitas and organized in synergy with the Politecnico di Milano and grants from new CRESCO islands Regione Lombardia. The initiative aims to form a network of towns (CRESCO Islands) in which local government, businesses and citizens can develop sustainable public policies and create replicable models. In co-operation with local administrators, enterprises have undertaken to raise awareness amongst citizens and students of the day-to-day practices that make intelligent use of natural resources and reduce environmental impact. In 2012, Indesit took part in the creation of two new CRESCO Islands, at Calusco dAdda (BG) and Carugate (MI). On both occasions, two Indesit employees met local citizens and spoke to them on how to use home appliances correctly and the energy savings they can deliver. The objective for 2013 is to create a Cresco Project website (in which Indesit will appear as one of the project partners).
Employees voluntary involvement
In its d facilities, Indesit organized two blood donor sessions with the Regional Blood Donation Centre. The first was in cooking products facility in June: 60 employees gave blood. The second was in the cooling products facility, where 40 employees gave blood, in December.
blood donations
100
To encourage team spirit, Indesit Company in Portugal did voluntary work in support of a more sustainable society. In 2012, in collaboration with Grace (Corporate Citizenship Thoughts and for parkland conservation Support Group), a number of Indesit employees took part in an environmental campaign day in the Sintra and Cascais Nature Park. Volunteers did weeding and installed protection around plants to improve their conservation.
Grace
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Sustainability Report 2012 Environmental performance
Environmental performance
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Environment protection
In 2011 we said that we would Innovation for environment > > Continue monitoring the environmental impact of products in use. Develop new high energy efficiency cooking products, including the full range of ovens in class A, and complete the ecological ranges of Luce ovens, Direct Flame and Planar Technology gas hobs, and induction hobs. Develop free-standing products in class A+++. Monitored environmental impact in terms of the energy class of products sold. Produced all ovens in class A except for certain models still in the range used for promotions (the few units lower than class A sold in 2012 were produced in 2011); completed the ecological ranges on schedule. Developed product families in class A+++ (60 cm Static combo, 70 cm Static and No-frost combos, 60 cm dishwashers) which will be put on the market in 2013. Developed and commercialised families of built-in combo fridges, washing machines and dishwashers in class A++. In such countries, we increased combined sales of class A+ (the mix moved from 2% in 2011 to 4% in 2012) and classes A (from 45% to 49%) and diminished sales of classes lower than A. Increased products sold in class A+ or higher from 35% in 2011 to 47% in 2012; failure to achieve 65% reflects low demand for high energy efficiency products in the Russian area, without which the total mix of high energy efficiency products would be over 70%. Produced 37% of products in the Indesit Ecotime range with the Energy Saver option and a 20 C Standard Cotton cycle offering washing performance comparable to a 40 C cycle. Achieved a per-unit-produced reduction of 1% for energy consumption, 2% for CO2 emissions, 5% for water consumption and 2% for waste production. Achieved a reduction of over 1% for CO2 emissions from the manufacture of one piece and its 1st year of use. Obtained ISO 14001 certification for 4 non-production sites (Lipetsk warehouse, Sports Field, Fabriano C Maiano spares warehouse and Fabriano C Maiano Italian Office/ Call Center). In 2012 we
>
>
Develop built-in products in class A++.
>
Reduce the number of cooling products in class A also in countries where the law doesnt require conversion to A+.
>
Take Hotpoint washing machines in class A+ to 65%.
>
Provide in 30% of the Indesit Ecotime range a 20 C cycle offering the same washing performance as the 40 C cotton cycle and an Energy Saver option.
Sustainability of production processes > 2% reduction in energy consumption, CO2 emissions, water consumption and waste production, all per unit produced. 1% reduction of CO2 emissions from the manufacture of one piece and its 1st year of use. Obtain ISO 14001 certification for 4 non-production sites.
>
>
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Sustainability of logistics > > Increase use of Euro 5 vehicles for transporting products. Launch a Green service project to raise personnel awareness of the value of the environment and introduce energy saving solutions for the service structure.
Goal reached Goal partially reached Goal failed
Increased use of Euro 5 vehicles from 54% in 2011 to 65%. Launched the project and organized various initiatives at the C Maiano warehouse.
For the future, we want to... Innovation for the environment Washing: increase sales of Hotpoint washing machines in energy classes higher than A++, offer washing machines with Hotpoint Direct Injection technology higher than class A+++, increase sales of Hotpoint washer-dryers in class A. Cooling: offer Hotpoint products in energy class A+++, increase the mix of products in class A++. Built-in Cooking: increase sales of A-20%1 Luce ovens, induction hobs and Direct Flame gas hobs (with exclusive Indesit Co. burners that save up to 20% gas compared to standard) and launch hoods with higher energy efficiency. Free-standing Cooking: introduce exclusive high energy efficiency burners at universally affordable prices to cut gas consumption by at least 10% on single-cavity/gas-hob cookers; introduce packaging with 37% less material (EPS) and potential savings of 130 tonnes a year. Drying: appreciably shift the current product mix towards high energy efficiency models, migrate the standard VENTED range to a higher energy class. Dishwashers: market free-standing and built-in dishwashers in class A+++, phase out 60 cm width, class A, by the end of 2013. Sustainable production Proceed with ISO 14001 certification of non-industrial sites. 1.5% reduction in energy consumption per unit produced; 5% reduction of water consumption per unit produced.
1. This means medium sized ovens with a capacity of 35 to 65 litres; comparison with 29 rival products according to figures published in the relative official catalogues as of 31 December 2010.
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Innovation & design
Raw materials and supply
Indesit Company has consolidated an environmental culture that it shares with its stakeholders in the full conviction that safeguarding the environment is not only a fundamental moral value but a strategic factor in competitiveness and the sustainability of the business model. The Groups approach to managing environmental impact embraces the entire life cycle of home appliances, from design through to final disposal.
Awareness and promotion of environmental protection
THE ECOSUSTAINABLE MANAGEMENT OF THE LIFE CYCLE OF HOUSEHOLD APPLIANCES
Eco-friendly production processes
Disposal and recycling Use and consumption reduction
Logistics
Indesit Company innovation for the home of the future and safeguarding the environment
For Indesit Company, innovation also means advantages for the environment, and commitment to innovation has always been a priority for the Group, being part of its vision of sustainable development and creation of value. Its initiatives in this field have always been numerous, including both projects developed independently by the Group and in partnerships at national and international level. Energy efficiency Indesit Company continued to participate in the project entitled Study, design and development of a new range of home appliances with innovative technologies that considerably reduce energy consumption and environmental impact within the framework of Industry 2015 Energy Efficiency, an initiative financed by the Economic Development Ministry. Due to be competed by mid 2013, the project involved the making of a number of technological demonstrators which will be mounted in working prototypes this year to validate the technologies developed to reduce energy consumption and environmental impact. Home Lab The Home Lab consortium is based on the idea of creating a network for the development of an open innovation model enabling enterprises, universities and research organizations to share experience, know-how and patents for the purpose of fostering a culture of innovation and defining standards for communication and interoperability between products and services in the home. Synergy is a key factor for Home Lab, which after its start-up phase will be opened up to all subjects wishing to participate. The eight founder partners (Ariston Thermo, Gruppo Elica, Indesit Company, Loccioni, MR&D Institute, Spes, Teuco-Guzzini and Universit Politecnica delle Marche) were joined in 2012 by Biticino, the French Groupe Legrands holding company in Italy. The integration of home appliances and domestic systems (heating, ventilation, lighting and cooling) offers opportunities to increase energy savings and simplify peoples lives through innovative
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services like remote control, tele-diagnostics and preventive maintenance. In particular, a project was started up to define a new interoperable standard, for nationwide application, with the aim of creating a standard interoperation language in the home. This will enable functional interaction between appliances built by the manufacturers in Home Lab, the homes domotic system and the Web. Having an open language shared by the equipment in a home will help towards the creation of intelligent systems to facilitate domestic life and at the same time reduce energy consumption and production of CO2. Energy@home The Energy@home project was launched in Italy in 2009 and is based on collaboration between Indesit Company, Electrolux, Telecom Italia and Enel. The partnership aims to develop a communication infrastructure for exchanging information on energy availability, intelligent management of appliances and consumption data and energy tariffs. The proposed system will enable consumers to manage energy consumption in the home more effectively by rationalizing and minimizing it, thus creating benefits from an environmental viewpoint and helping promote the cause of energy efficiency, which is increasingly central to policies in Europe (also on climate change). Some important results were seen in 2010 and 2011, such as the definition of use cases, the public release of technical specifications, the collaboration agreement with ZigBee Alliance and the production of devices to enable the systems functions. This included the development of the Smart Aqualtis, Indesit Companys first smart grid ready washing machine designed to be an integral part of an interconnected ecosystem. Thanks to the flexibility of the solution implemented, the Smart Aqualtis is a vital part of some of the most important and innovative experimentations in Europe for the development and diffusion of smart grids. 2012 undoubtedly saw the fastest growth in the collaboration so far, thanks to the achievement of a series of technical and organizational objectives, including the set up of Energy@home, a no-profit association that enabled other important new partners to join the initiative (such as Vodafone, ST Microelectronics, Freescale), the start of field experimentation of the technologies and services in 50 homes in Italy, dialogue between the association and other similar initiatives in Europe (EEBUS, Agor, etc.) to share concepts and information and work on international standardization, and lastly, the associations dialogue with legislators and regulators and other government bodies to communicate the activities of Energy@ home and build a framework for co-operation with such bodies. Reduction of consumption and environmental impact of products Indesit Company has been working for many years on the development of products that make optimal use of resources in all phases in their life cycle. This business strategy is also motivated by awareness of the impact that home appliances have on greenhouse gas emissions and therefore on global warming (according to scientific analysis, the energy impact generated in the phase of use is around 80% of total impact). Thanks to ongoing improvements, Indesit Company was able to achieve the following results in its mix of high-performance products in 2012.
of fridges sold were in energy class A or higher (around a half in were in classes A+ and A++
80%
of washing machines sold were in class A+ or higher
57%
of dishwashers sold were in class A (20% in class A+ and 1% in class A++)
78%
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The main innovations for the environment in 2012
Cooking a new range of hobs that exploit the energy efficiency of induction, a technology thats innovative, green, safe and intelligent. new range of gas hobs in which the flat burner improves heating efficiency and delivers a reduction in gas consumption. a new range of ovens offering a cooking cycle with one of the lowest energy consumptions in its category (0.64 kWh per Eco cooking cycle, which can be used in certain types of cooking where the max. temperature is 200 C). Hotpoints new cooking hood employs an odour filtration system with around 96% efficiency and a system to reduce noise during operation. Washing the first Hotpoint washing machine with a detergent activation system capable of guaranteeing exceptional washing results even at low temperatures. Using washing cycles with Direct Injection its possible to achieve savings, at a given level of washing performance, of 43% in energy and 3.2 litres of water for every wash, whilst also maintaining fabric quality and colours. And with Direct Injection applied to the new washing machine platform recently developed by Indesit, energy consumption can be further reduced by around 20% compared to the standards of class A+++ for a 10 kg load. the newly launched line of Indesit washing machines whose Energy Saver function delivers energy savings of up to 70% (comparing the consumption levels of the Cotton 30 C cycle with and without the Energy Saver function). The function optimizes mechanical movement, making it possible to wash with cold water without sacrificing anything in terms of washing results. deployed across the entire Ecotime range, this technology has a special electronic sensor that serves to automatically regulate water consumption to the quantity of laundry to wash. Every kilogram of laundry is thus washed with the correct amounts of environmental resources, with up to 50% energy savings when washing 1 kg of laundry compared to a full load. the new washer-dryer in Hotpoints Aqualtis range can handle large quantities of laundry (washing up to 11 kg and drying 7 kg in energy class A), thus making it possible to optimize weekly washes and consume less than other higher selling machines on the market.
Flexizone, Extenso:
Planar Technology and Direct Flame: Luce:
Odor filtering & Low noise: Direct Injection:
Ecotime:
Water Balance:
Aqualtis:
element used to dry laundry. It works in three phases, with different temperatures inside the drum depending on the humidity of the load. The system delivers energy savings of up to 3% on a drying cycle.
Heat Profile: washer-dryers now have an innovative system for managing the heating
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Dryer the range of models with heat pump technology (very high energy efficiency) was extended by the new Hotpoint High Definition dryers, which use the thermal energy needed for drying whilst exploiting heat released by a cooling circuit. The models in energy classes A+ and A++ save from 35% to 40% in energy compared to class A.
Heat pump:
energy at the end of the cycle. Cooling
Stand-by: introduced on all the electronic range, the stand-by function prevents waste of A+++:
the use of new heat exchangers, optimization of flow characteristics and compressor drive logics made it possible to achieve energy efficiency class A+++ in three product categories (70 Static combo, 70 NF combo [project EGE], 60 Static combo). reduction of noise during normal operation and the introduction of special functions (eg. Good Night) to increase consumer comfort even further at certain times.
Noise reduction:
to improve food preservation and reduce food waste.
Food care: special functions (Active Oxygen, fast cooling, assisted thawing) were introduced
Eco-efficiency in production
One of the main areas in which to control environmental impact is manufacturing. This is why the Group has for years been using various tools to monitor the environmental impact of its production plants. It has obtained ISO 14001 certification for The extension of the environmental its environmental management systems and taken certification ISO 14001 various other measures to reduce consumption and involves 34 Group sites, emissions. including all the production facilities. Energy consumption per unit produced continued to fall in 2012. Indesit Company achieved per-unit-produced reductions of 1% in energy consumption, 2% in CO2 production, 5% in water consumption and 2% in waste production.
ISO 14001
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Unitary energy consumption

(GJ/piece)
0.150 10
Unitary emissions of CO2

(kg/piece)
9.9
0.125
0.120
0.118
0.117
7.9
7.7
0.090 2010 2011 2012
6 2010 2011 2012
Unitary abstraction and disposal of water

(m /piece)
3
Unitary waste
(kg/piece)
4.5
0.150
0.150
0.135 0.128
0.130 4.0
4.15
4.12 4.04
0.090 2010 2011 2012
3.5 2010 2011 2012
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The tables below detail the environmental impacts of the Groups production business.
Raw materials used (t) Direct materials * Iron and steel Plastic Concrete Electrical components Inox steel Glass Foamed PUR Wood Aluminium and aluminium alloys Paper Chemical products (thinners/silicons) Rubber Copper Paints Cast iron Other metals and alloys Other materials Materials originated from recycled material (%) ** Iron and steel Plastics Concrete Inox steel Auxiliary materials Lubricants 2012 206,726 160,029 115,287 70,374 41,505 40,389 31,594 11,765 11,074 7,991 7,812 6,888 4,851 4,481 3,958 3,108 3,825
7% 3% 27% 70% 228
* Figures estimated based on most significant product composition of 2012 production (sample products). ** Figures referred to material directly purchased by Indesit Company. Figures are estimated for material composition coming from main suppliers. Energy consumption (GJ) Methane LPG Total direct consumption Electrical energy - from renewable sources Thermal energy Total indirect consumption Total energy consumption Total consumption per product unit (GJ/piece) 2012 505,041 3,583 508,624 700,814 24% 306,847 1,007,661 1,516,285 0.117 2011 524,962 3,448 528,410 686,266 27% 280,838 967,104 1,495,514 0.118 2010 568,556 16,411 584,967 701,238 29% 318,269 1,019,507 1,604,474 0.125
Note: LPG consumption figures based on Group plant estimates. LPG consumption for 2011 has been restated due to the improvement of the monitoring system.
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Water abstraction (m3) Public supply From wells or other sources Total abstraction Abstraction per product unit (m3/piece)
2012 386,858 1,268,707 1,655,565 0.128
2011 294,461 1,415,726 1,710,187 0.135
2010 336,493 1,612,944 1,949,437 0.150
Water disposal (m3) Total discharge
2012 1,604,627
2011 1,464,308
2010 1,666,212
Note: Figures based on plant estimates. Water used by the Group plants is disposed through internal or external treatment plants, except for Albacina plant cooling water that is discharged without treatment because not polluted. Emissions of greenhouse gases CO2 produced (t) CO2 per product unit (kg/piece) 2012 100,119 7.7 2011 100,429 7.9 2010 129,510 9.9
Note: CO2 emissions calculated on the basis of electrical and thermal energy, natural gas and LPG consumption. The figures for 2011 were restated using a more accurate estimation method. Other emissions in the air (t) NOX CO Total dust (PTS) Volatile organic compounds (VOC) Others Total Note: Figures based on Group plant estimates. Waste produced (t) Total waste by type -Hazardous -Non hazardous Total waste by disposal method - Waste recycled - Waste to landfills Waste per product unit (kg/piece) Note: Figures on waste disposal methods based on Group plant estimates. 2012 52,234 2,300 49,934 52,234 49,012 3,222 4.04 2011 52,319 1,819 50,500 52,319 48,996 3,323 4.12 2010 54,346 2,543 51,803 54,346 50,570 3,776 4.15 2012 29.7 43.1 4.4 141.0 1.1 219.4 2011 24.2 42.4 4.7 115.4 7.0 193.7 2010 34.2 41.1 5.4 104.3 7.7 192.6
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Logistics
Transportation of products from manufacturing sites to markets is a significant source of environmental impact. Indesit Companys transportation policy is to use different means of transport and be in a position to choose the most efficient logistics solutions in terms of reducing the environmental impact of the Groups business. It has on one hand made increasing use of transport suppliers whose vehicles have advanced technology for low emissions, while it has not been possible, on the other hand, to replace road transport with other more economically efficient methods that are more eco-friendly as well, even though some of the transportation continues to be by intermodal systems. The Groups logistics policy in 2012 generated total unit emissions of 4.4 kg per unit transported.
Transportation mode (%) 2012 Intermodal rail Intermodal sea Sea Rail Road Total 1% 2% 19% 0% 78% 100% 2011 1% 1% 17% 0% 81% 100% Emissions by transportation mode (kg/piece transported) 2012 4.0 1.3 1.9 0.0 4.8 4.4 2011 4.7 1.2 1.8 2.3 4.9 4.5
Transportation mode
Note: 1. With the exception of a small fleet of light vehicles for home deliveries in the UK, all vehicles are owned by 3rd parties. 2. Emissions values refer to kms travelled in which the shipment risks and expenses are Indesit Companys and do not include transportation from warehouses to clients within the same country. 3. Emissions are calculated on the basis of the emission factors in 2012 Guidelines to DEFRA/DECCs GHG Conversion Factors for Company Reporting (Annex 7 - Freight Transport Conversion Tables). In the case of intermodal sea and intermodal rail, the emission factors used were sea and rail, respectively. Fleet breakdown
(in %) Euro 6 30 54 3 65 Euro 5 Euro 4 39 60 24 31 20 22 13 19 Euro 1, 2 and 3
100
80
40
0 2010 2011 2012
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Sustainable distribution and warehouse management
In 2011, Indesit Company drew up a plan to improve the sustainability of its distribution and warehouse management processes through a series of initiatives, measures and projects to raise personnel awareness of the need for environmentally responsible behaviour and to act directly on the carbon footprint of storage and distribution of products and spares. The plan led to the following action at the C Maiano warehouse.
INItIATIVEs at C MAIANO
The C Maiano spares warehouse pressed on with its green policy in 2012. Good ecological behaviour was promoted both by initiatives addressing employees and through investments in energy saving. The former initiatives included car sharing (the timings of operatives shifts were optimized so that one car could be used for four people living close together), sorting of office waste and use of recycled paper. An unused area of the site was turned into a garden. Another initiative saved paper: a small IT investment enabled the warehouse to use only two transport documents per delivery instead of three, thus saving on printing as well. Separation of returned parts into recyclable and non-recyclable materials and re-use of packaging (master boxes used for loose spares are removed, if in good shape, folded and sent for re-use as packaging or new master boxes) were promoted. Heating and lighting were two obvious areas in which to reduce the warehouses carbon footprint. People were encouraged to switch off when natural light and warmth are sufficient. The warehouse was also fitted with twilight sensors to automate the switching on and off of lights. A major investment is being made in the replacement of the old boiler with a natural gas fired one. This conversion will be completed by spring 2013 and will deliver substantial savings on heating and be an important step towards reducing the carbon footprint. New forklifts were introduced to achieve a reduction in emissions of over 10%. The warehouse layout was radically redesigned to appreciably reduce distances travelled by trucks in the three dimensions (horizontal, lateral and vertical). Over half of all orders are managed by an eye-level warehouse in which withdrawal and replenishment involve minimum use of forklifts.
Recovery of products and materials
Indesits environmental challenge is not limited to managing the effects generated by the operation of its products: the entire life cycle of the product, from manufacturing to disposal, must be considered. Indesit Company is a member of various electrical and electronic waste recovery organizations set up to avoid pollution of the environment and maximize recovery of materials to recycle in production processes. The Group plays an active role in such consortiums in all EU countries and took part in the drafting of the WEEELABEX waste collection and treatment standards integrating the WEEE Directive. One of the consortiums in which Indesit Company ECODOM COLLECTION IN 2012 is active in Italy, ECODOM (Italian Home Appliance Collection and Recycling Consortium), is creating Thanks to the collection of over 70,000 tonnes of waste in Italy and to responsible disposal of it, an effective system of collection and recycling ECODOM made it possible to produce the following of products and packaging that, if disposed of quantities of secondary raw materials: as normal waste, would waste considerable around 46,000 tonnes of iron over 1,300 tonnes of copper quantities of valuable and environmentally over 1,700 tonnes of aluminium damaging materials (eg. iron, aluminium, around 6,000 tonnes of plastic. copper, steel, plastic and glass). In addition to Use of raw materials from waste disposal delivered an energy saving of over 133 million kWh (compared saving natural resources, these activities deliver to the energy needed to obtain the same quantities significant advantages for the environment by of virgin materials) and avoided around 1.2 million reducing the landfill, energy consumption and tonnes of CO2 emissions. emission of greenhouse gases caused by disposal Source: http://www.ecodom.it processes.
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RECOVERY OF PACKAGING IN GREAT BRITAIN IN 2012

The packaging recovery project in the UK yielded: 245.6 tonnes of polystyrene foam 75.7 tonnes of polythene 73.1 tonnes of cardboard 45.5 tonnes of wood
In addition to co-operation in consortiums, the Group organizes initiatives to collect product packaging on its own account. One such project is in the UK, where the Group offers its customers immediate collection of the packaging in which products are delivered. Once collected, the materials are sorted, treated and sent to the Repackaging Area of the Raunds distribution centre, where they are used to replace damaged packaging.
Active role in Europe for environmental protection
Indesit Company is active in national trade associations in nearly all countries in the European Union. Indesit Company representatives play key roles in CECED in Brussels. Active participation in these trade associations enables the Group to enjoy constant dialogue with the authorities for the purpose of anticipating social requirements relevant to our industry. European WEEE Directive Recovery and disposal of WEEE has been very successful in Italy, one of the countries in Europe where the previous Directive was most effectively assimilated and which managed to limit the number of products incorrectly treated or, worse still, illegal exported. This success was partly down to Indesits advocacy at EU and Italian level of the new WEEE Directive and its assimilation by member states. ATLETE II Indesit and CECED have always seen market surveillance as an indispensable instrument for protecting consumers and the market itself. In 2012, Indesit took part in a funded project entitled Appliance Testing for Energy Evaluation II (ATLETE II) by providing technical know-how in the preparatory stages. The aim of ATLETE II is to assess washing machine energy labelling and ecodesign in the EU market: for the first time in the area, washing machine models will be tested to the new energy labelling laws. Energy labelling The current energy labelling has to be revised in the next few years. Indesit believes labelling is vitally important because it provides objective data enabling consumers to choose more sustainable products. Thanks in part to Indesit, the CECED association set up talks with environmental organizations and consumers in the conviction that its necessary to understand the needs and expectations of all parties and aim at shared solutions. Eco design Through CECED, Indesit contributed to a study by the Joint Research Center for the European Commission on the re-use, reparability and recyclability products. Indesit provided technical data of use to the study and created useful opportunities for dialogue with product recycling centres. It made an active contribution to a study commissioned by CECED from BioIS on the feasibility and advisability of labelling that indicates not only energy consumption but also Product Life Cycle impact, a controversial and very important issue in view of the upcoming review of the labelling.
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Smart grids Integrating renewable energy sources, rationalizing new infrastructure investments and making grids more efficient by reducing peaks and increasing resilience are all key objectives that home appliances can help achieve. In a smart grid, information on the state of the network can be used by intelligent, reactive devices to help the grid to work better. The technologies are already available and standards are being developed but for this vision to become reality rules are needed to protect consumers and ensure they are fully free to manage their home appliances and also receive consideration, at market values, for the contribution they can make towards grid management. For example, there should be discounted tariffs, tending to zero cost, for energy consumed when supply is high and demand is low. Within CECED Europe and CECED Italy, Indesit has taken part in European work groups and public consultations in favour of a new energy market that is fair. INDESIT COMPANYS KEY ROLE IN TRADE ASSOCIATIONS
CECED Italy - Vice-presidency of the Italian association of domestic and professional equipment manufacturers, whose main objectives include raising the awareness of government and citizens on environmental protection, energy saving and consumer protection issues; ECODOM in Italy - Vice-presidency of the consortium of home appliance manufacturers, set up to prevent discharge of pollutants or substances harmful to the ozone layer and maximize recovery of materials (steel, aluminium, copper, plastic) to recycle in production processes. Trade association in Russia - Indesit has played a key role in advocating the creation of a home appliance manufacturers association in Russia to facilitate dialogue on product Technical Regulations in a period in which the Russian, Kazakh and Belarusian Customs Union is adopting new product regulations to protect consumers and the environment and is looking to the European Union as a possible model. EBA in Ukraine - Indesit joined this association in 2012 and made an active contribution towards the process of harmonizing product regulations in Ukraine with those in the EU.
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Sustainability Report 2012 GRI Content Index
GRI Content Index
Legend FR: Annual Financial Report to 31 December 2012. CGR: 2012 Annual Corporate Governance and Ownership Structure Report.
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Indicator 1 1.1 1.2 2 2.1 2.2 2.3 2.4 2.5 2.6 Strategy and analysis Chairman and CEO statement Description of key impacts, risks, and opportunities Organisational profile Name of the organisation Primary brands, products and/or services Operational structure Headquarters Number of countries where the organisation operates Nature of ownership and legal form
Disclosure Total Total
Page/Reference 3 3, 4, 10-11, 13, 17, 37, 45, 51, 55 Front cover 6 FR 42, 60, 110-111
Notes
Total Total Total Total Total Total
FR 42 Fabriano (AN), Italy 6, FR 60 CGR 9-12 Indesit Company S.p.A. was formed in 1975 by the home appliance division of Industrie Merloni and listed on the Milan stock exchange in 1987 Website section: Company: Product lines, Markets; FR 9-13, 42 4, 6; FR 6; CGR 9 35 6, 22, 43 2 2 2 Inside back cover 13 2 2 2
2.7
Markets served
Total
2.8 2.9 2.10 3 3.1 3.2 3.3 3.4 3.5 3.6 3.7 3.8
Scale of the reporting organisation Significant changes Awards received Report parameters Reporting period Date of most recent previous report Reporting cycle Contact point for questions regarding the report Process for defining report content Boundary of the Report State any specific limitations on the scope or boundary of the Report Basis for reporting on joint ventures, subsidiaries, leased plants, outsourced operations that can significantly affect comparability from period to period Data measurement techniques and the bases of calculations Any re-statements of information provided in earlier reports Significant changes in boundaries and measurement techniques from previous reporting periods Chart (GRI Content Index) Assurance Governance, commitments and engagement Governance structure Indicate whether the Chair is also an executive officer Independent and/or non-executive members Mechanisms for shareholders and employees to provide recommendations Linkage between compensation for members of the highest governance body and organisations performance
Total Total Total Total Total Total Total Total Total Total Total
3.9 3.10 3.11 3.12 3.13 4 4.1 4.2 4.3 4.4 4.5
Total Total Total Total Total
2 2 2 68 75
Total 12, CGR 15-25, 27, 33, 58 Total Total Total Total CGR 22 CGR 53 34, CGR 15, 32 30, FR 106, CGR 59-61
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Indicator 4.6 4.7 4.8 4.9 Conflicts of interest Qualifications of the Directors Mission or values, codes of conduct, and principles Procedures for overseeing the organisations identification and management of economic, environmental, and social performance Processes for evaluating the highest governance bodys own performance How the precautionary approach or principle is addressed by the organisation Externally developed, principles, or other initiatives to which the organisation subscribes or endorses Memberships in associations List of stakeholder groups engaged Basis for identification and selection of stakeholders Approaches to stakeholder Key topics and concerns that have been raised through stakeholder engagement Economic performance DMA EC EC1 Core EC2 Core EC3 Core EC4 Core EC5 Add EC6 Core EC7 Core EC8 Core Information on the management Economic value generated and distributed Financial implications and other risks due to climate change Coverage of the defined benefit plan obligations Significant financings received from government Range of ratios of standard entry level wage compared to local minimum wage Market presence policies, practices and proportion of spending on locally-based suppliers Local hiring at significant locations of operation Development investments and services provided primarily for public benefit Environmental performance DMA EN EN1 Core EN2 Core EN3 Core EN4 Core EN6 Add EN8 Core EN11 Core Information on the management Raw materials used Materials used that are recycled Direct energy consumption by source Indirect energy consumption Initiatives to provide energy-efficient or renewable energy based products and services Total water withdrawal by source Location and size of land adjacent to protected areas and areas of high biodiversity value
Disclosure Total Total Total Total
Page/Reference Notes 10-11, Code of Conduct 7 CGR 44-50 8-9 11-13, 30,38, 60
4.10 4.11 4.12 4.13 4.14 4.15 4.16 4.17
Total Total Total Total Total Total Total Total
CGR 18 10, 42 11; 36 67 12 12 12, 21, 28, 43, 49, 50 43,50
Total Total Total Total Total Partial Total Total Total
14, 52 14-15 11, 57 FR 132, 163 15 29 48 21 51-53
Total Total Total Total Total Total Total Total
57, 60, 64 62 62 62 62 59-60 63 Indesit Company does not own or operate manufacturing or business sites within protected areas. Concerning vicinity to protected natural areas, the Albacina plant in Fabriano is located a short distance from the Gola della Rossa e di Frasassi Regional Nature Park.
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Indicator EN12 Core Description of significant impacts on biodiversity
Disclosure Total
Page/Reference -
Notes Production activities carried out in the Albacina plant, located outside the nature park, have no significant impact on the biodiversity of the area. Further, the plant has an ISO 14001 certified environmental management system and complies with all the environmental regulations in force. The production process does not generate atmospheric emissions potentially damaging to the flora and fauna of the park or discharge waste water having qualities (including turbidity and temperature parameters) such as to compromise the normal biological cycles of freshwater bodies.
EN16 Core EN17 Core EN19 Core
Total direct and indirect greenhouse gas emissions Other indirect greenhouse gas emissions by weight Emissions of ozone-depleting substances by weight
Total Total Total
63 64 No leaks of substances harmful to the ozone layer were recorded in Group plants or offices. Conditioning plants in offices and other workplaces are operated under Indesit Companys environmental management systems, which provide for periodic monitoring and maintenance to prevent leakage of substances harmful to the ozone layer. Data on distribution of effluent water by destination is not currently available. The Group plans to report such data from 2014. No significant spills of pollutants threatening the state of the ground or subsoil occurred in 2012.
EN20 Core EN21 Core
Other air emissions Water discharge
Total Partial
63 63
EN22 Core EN23 Core
Waste by type and disposal method Total number and volume of significant spills
Total Total
63 -
EN26 Core EN27 Core EN28 Core
Initiatives to mitigate environmental impacts of products and services Percentage of products sold and their packaging materials that are reclaimed Sanctions for non-compliance with environmental laws and regulations Social performance
Total Total Total
57-60 65-66 The Group was not given any significant fines or sanctions for non-compliance with environmental regulations.
DMA LA LA1 Core LA2 Core LA3 Add
Information on the management Total workforce by employment type, employment contract, and region Turnover by age group, gender, and region Benefits provided to full-time employees that are not provided to temporary or part-time employees, by major operations Percentage of employees covered by collective bargaining agreements Minimum notice period(s) regarding significant operational changes
Total Total Total Total
18, 24, 26, 29, 30, 34 19-21, 23 19 30
LA4 Core LA5 Core
Total Total
34 34
71
Indicator LA6 Add LA7 Core LA8 Core LA10 Core LA11 Add Percentage of total workforce represented in health and safety committees Rates of injury, occupational diseases Education, training, counselling, prevention, and riskcontrol programs regarding serious diseases Hours of training Programs for skills management and lifelong learning that support the continued employability of employees and assist them in managing career endings Percentage of employees receiving regular performance and career development reviews Composition of employees per category according to gender, age group, minority group membership, and other indicators of diversity Ratio of basic salary of men to women by employee category
Disclosure Total Total Total Total Total
Page/Reference Notes 34 32, 33 31, 33-34 24-26 24-26 There were no fatal accidents.
LA12 Add LA13 Core
Total Total
26 19, 23; CGR 46-52
LA14 Core
Partial
29
Quantitative data for the ratio between mens and womens basic pay per professional category are not available. The Group plans to report such data from 2014.
Human rights DMA HR HR1 Core Information on the management Significant investment agreements that include human rights clauses Total Total 36, 47 47-48 No investment agreements were entered in 2012 leading to acquisition of another entity. Regarding relations with suppliers, see the pages referenced.
HR2 Core HR4 Core HR5 Core
Suppliers and contractors that have undergone screening on human rights Incidents of discrimination and actions taken Operations in which the right to exercise freedom of association and collective bargaining may be at significant risk Operations having significant risk of child labour Operations having significant risk for incidents of forced or compulsory labour Impacts on community Information on the management Manage the impacts of operations on communities Monitoring risks related to corruption Employees trained in anti-corruption policies Actions taken in response to incidents of corruption
Total Total Total
47-48 36 Nothing of note in the minutes to the meetings of the Supervisory Body.
HR6 Core HR7 Core
Total Total
36 36
DMA SO SO1 Core SO2 Core SO3 Core SO4 Core
Total Total Total Total Total
10, 35, 52 35, 52 10 10, 26 No episodes of corruption occurred in the Group in 2012. Procedures activated following reports sent to the Supervisory Body mailbox or via other admissible channels did not lead to any action.
SO5 Core SO8 Core
Public policy positions and lobbying Monetary value and non-monetary sanctions for noncompliance with laws and regulations
Total Total
66-67 FR 86
72
Indicator Product responsibility DMA PR PR1 Core PR2 Add Information on the management Life cycle stages in which health and safety impacts of products and services are assessed for improvement Incidents of non-compliance with regulations and voluntary codes concerning health and safety impacts of products Type of product and service information required by procedures Total number of product information and labelling nonconformities (breakdowned by type) to voluntary codes and regulations Practices relating to customer satisfaction, including results of surveys measuring customer satisfaction Programs for adherence to laws, standards, and voluntary codes related to marketing
Disclosure Total Total Total
Page/Reference 38, 42 42 42
Notes
There were no cases of non-conformity with regulations or voluntary codes regarding the impact of products during their life cycle on health and safety.
PR3 Core PR4 Add
Total Total
42, 44 44
PR5 Add PR6 Core
Total Total
43, 45 Regarding design and development of advertising campaigns and other promotional and sponsoring activities, Indesit Company is careful to comply with the law and makes preventive checks on compliance with current laws on marketing and advertising. The Group is a member of UPA Unione Pubblicitaria Associati and WFA World Federation of Advertisers.
PR8 Add PR9 Core
Total number of substantiated complaints regarding breaches of customer privacy and losses of customer data Monetary value for non-compliance with laws and regulations
Partial Total
44 42
73
Sustainability Report 2012 Global Compact-GRI correspondence table
Global Compact-GRI correspondence table
Area Human rights
Global Compact principles Principle I Businesses should support and respect the protection of internationally proclaimed human rights
GRI indicator EC 5 LA 4, LA6, LA 7, LA 8, LA 13, LA 14 HR 1, HR 2, HR 4, HR 5, HR 6, HR 7 SO 5 PR 1, PR 2, PR 8 HR 1, HR 2, HR 4, HR 5, HR 6, HR 7 SO 5 LA 4, LA 5 HR 1, HR 2, HR 5 SO 5 HR 1, HR 2, HR 7 SO 5 HR 1, HR 2, HR 6 SO 5 EC 7 LA 2, LA 13, LA 14 HR 1, HR 2, HR 4 SO 5 EC 2 EN 26 SO 5 EN 1, EN 2, EN 3, EN 4, EN 6, EN 8, EN 11, EN 12, EN 16, EN 17, EN 19, EN 20, EN 21, EN 22, EN 23, EN 26, EN 27, EN 28 EN 2, EN 6, EN 26, EN 27 SO 5 SO 2, SO 3, SO 4, SO 5
Principle II Businesses should make sure that they are not complicit, even indirectly, in human rights abuse Labour Principle III Businesses should uphold the freedom of association and the effective recognition of the right to collective bargaining Principle IV Businesses should uphold the elimination of all forms of forced and compulsory labor Principle V Businesses should uphold the effective abolition of child labor Principle VI Businesses should uphold the elimination of discrimination in respect of employment and occupation Environment Principle VII Businesses should support a precautionary approach to environmental challenge Principle VIII Businesses should undertake initiatives to promote greater environmental responsibility Principle IX Businesses should encourage the development and diffusion of environmentally friendly technologies Anti-corruption Principle X Businesses should work against corruption in all its forms, including extortion and bribery
74
Sustainability Report 2012 Report of the independent auditors
Report of the independent auditors
75
Sustainability Report 2012 Report of the independent auditors
76
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Sustainability Report 2012

Sustainability Report 2012 Contents

2 3 4 5 Indesit Company and sustainable development

6 Who is Indesit Company? 10 Sustainability governance 12 Stakeholders 13 Material issues

14 Economic background 14 Creation and distribution of wealth

Sustainability Report 2012 About this document

About this document

Sustainability Report 2012 To our stakeholders

Sustainability Report 2012 2012: Indesit Company sustainability highlights

2012: Indesit Company sustainability highlights

Community & Territory

Su su stain pp ly able ch ain

On-line survey of suppliers sustainability

Employees on indefinite term contracts: 85%

2% reduction in CO2 emissions

28% Reduction in accident frequency index in industrial sites

Over 90 patent applications filed

R&D investments: 26 million euros

H & S ealth afe ty

7% reduction in the defect rate in 1st year of guarantee

ty ent ali Qu ronm i nv

Sustainability Report 2012 Indesit Company and sustainaible development

Indesit Company and sustainaible development

Value in industrial initiave unless there is also commitment to social progress

Sustainability Report 2012 Indesit Company and sustainaible development

Who is Indesit Company?

Over 16,000 employees

Sustainability Report 2012 Indesit Company and sustainaible development

Sustainability Report 2012 Indesit Company and sustainaible development

Respect for workers rights

Adoption of a participatory model in industrial relations

Sustainability Report 2012 Indesit Company and sustainaible development

Quality and environment policy: key points

Sustainability Report 2012 Indesit Company and sustainaible development

Sustainability Report 2012 Indesit Company and sustainaible development

Indesit adheres to the mAIN international sustainability standards

Sustainability Report 2012 Indesit Company and sustainaible development

Social responsibility management in Indesit Company

HR Quality & Environment Business development

Reporting & Auditing

Brand & Consumer Marketing

External Communications & CSR

Service & Cons. Care Manufacturing Supply Chain & IT Sales

Suppliers Public administration

Sustainability Report 2012 Indesit Company and sustainaible development

Infl uences on stakeholder judgements and decisions

Significant economic, social and environmental impacts of Indesit Company

Sustainability Report 2012 Economic performance

Creation and distribution of wealth

Distribution of 2012 economic value generated

0.02% 6.29% 1.66% 1.84%

Operating costs 75.90% Remuneration of personnel Remuneration of lenders and shareholders

Sustainability Report 2012 Economic performance

Bilancio di Sostenibilit 2012 Social performance

Sustainability Report 2012 Social performance

Safeguard peoples health and safety > >

Goal partially reached

Sustainability Report 2012 Social performance

Human Value Chain