1

The integrated management system


Starting from 2016 the company web site includes a new section where all the certificates that make up the Integrated Management System of the company are collected and put on display:
This decision is in line with the commitment of Valagro to attain the highest national and international standards in order to measure and continuously improve its performance in the areas of the safety and well-being of the work-force, the quality of the processes and products and the impact on the environment, in line with the ISO 9001:2008 standard (Quality Management).

Along with this commitment, ten years ago the company equipped itself with a system of reporting near misses to strengthen risk prevention in terms of quality, environment, safety, energy and, from 2016, also in the area of product traceability.

Thanks to this system every module for reporting a near miss internally activates an analysis that can also involve different company departments so as to understand the circumstances surrounding the event and to take corrective actions.

Reporting of near misses


6
28
35
0
0
5
38
34
1
0
13
27
24
1
4
2014
2015
2016


This is not all. The training of the employees represents a vital support in maintaining these standards. In fact by means of regular carefully targeted training programmes that involve all the employees, the company intends to establish and diffuse a business culture aimed at safety and more broadly at responsibility for the environmental and social context in which it operates.

Environment and Safety Training courses (hours/year)


Year201420152016
Training hours2,7093,6732,942
4000
3000
2000
1000
0
2014
2015
2016
2

Process and product quality


In line with the considerable attention paid to process and product quality, again in 2016 Valagro received the “Trade-mark of Quality” certification (Marchio di Qualità) from the "Ispettorato Controllo Qualità Repressione Frodi" (ICQRF), the body that every year checks that the content of the packaging meets the quality requirements of Law 748/84, on the basis of system certifications, product certifications and the type of “Non-compliance” and irregularities encountered and disputed.
An important parameter for assessing the commitment of Valagro to maintaining the highest quality standards in terms of processes and products is the percentage of customer complaints, down in 2016 compared with previous years.

Customer complaints (%)


Year201420152016
Customer complaints (%)0.870.730.69
1.5
1.125
0.75
0.375
0
2014
2015
2016
These results have been achieved as a consequence of the adoption of the ISO 9001 standard, which manage and improve the quality of the production system. With the adoption of this standard the company is required to perform regular quality checks on the entire production cycle, from incoming raw materials to the finished product.

Quality checks on batches and resulting conformity - Raw materials


Year201420152016
Batches analysed1,2801,3801,642
Non-Conforming10147
% Conforming99.2299.0099.57

Quality checks on batches and resulting conformity - Finished products (semi-finished)


Year201420152016
Batches analysed2,5532,5922,790
Non-Conforming29176
% Conforming98.9099.3099.78

Year201420152016
Incidents of non-compliance with regulations resulting in a warning91210

As a result of the careful attention paid to process and product quality it is worth noting that, in line with what is required by the standard adopted, Valagro has not incurred any sanctions for failure to comply with laws and regulations of an environmental nature. (G4 EN29 - Monetary value of significant fines and total number of non-monetary sanctions for non-compliance with environmental laws and regulations.)

3

Care for the environment


The aspects connected with the environmental impact are always at the centre of company growth strategies: the company dedicates commitment and resources to them also in view of the impact caused by the increase in business volumes and hence the growth in production, as shown in the following graph:

Production


Year201420152016
Production (tons/year)26,00729,34832,960
35000
26250
17500
8750
0
2014
2015
2016

201420152016
Report total environmental protection230,000220,000220,000
As far as the production inputs are concerned, the GRI standard in particular highlights the positive trend progressively recorded in the provisioning of renewable materials, compared with non-renewables.

Report the total weight or volume of materials that are used to produce and package the organization's primary products


201420152016
External Source (tonnes)26,543,75828,784,86731,873,997
Internal Source (tonnes)679,456985,325847,834
201420152016
Non-renewable materials used24,082,26225,268,66228,194,357

Identify the total weight or volume of materials used as reported under G4-EN1


201420152016
Total weight (tonnes)2,461.493,516.203,679.64

2.2.1 Emissions


As reported in the EMAS Environmental Statement 2016, significant atmospheric emissions consist of dust, metals and volatile organic compounds caused by production. Other non-significant emissions come from combustion plants (boilers) and the chemical laboratory.

Again in 2016 a steady reduction can be seen in emissions of dust and metals, a fact that is even more significant when viewed in relation to the increase in production volumes, as shown above. This is a result of the constant improvement in the monitoring and plant safety systems.

With regard to volatile organic compounds (phenol, isobutyl alcohol and isobutyl acetate), within the framework of the overall reduction in the emission of these substances, over the course of 2016, a slight increase was observed regarding class IV VOCs (isobutyl acetate), in spite of which, however, levels remain well below the authorised limits.

Year201420152016
NOXNANANA
SOXNANANA
POPNANANA
VOC (UNI EN 13649:2002 UNI EN 13649:2002)648.81,3351,689
PM (UNI EN 13284-1:2003)375.85329.12197.86
Metals42.62.37

Dust emissions


Metal emissions


Another significant source of emissions is greenhouse gases (GHG), which are responsible for increasing the natural greenhouse effect.
One of the most significant greenhouse gases is carbon dioxide (CO2), which contributes globally to more than 55% of anthropogenic greenhouse effect.

In line with the GRI standard, the following tables show in detail the emissions of GHG at the production site in Atessa (Valagro Headquarters), drawn up using the SIMAPRO software with the Ecoinvent 3.1 database.

The GHG emissions are analysed on the basis of the ISO 14064, certification awarded to Valagro at the end of 2015. It analyses in detail all the emissions from non-renewable sources and classifies them according to a schedule divided into three contexts.

The first, Scope 1, represents the emissions produced by sources under the direct control of the company, such as the combustion of Natural gas in the heating plant or the diesel used by the forklift in the movement operations of goods.

The second, Scope 2, quantifies the indirect emissions from the use of electricity by the organisation. Almost always the companies buy electricity from third parties that is produced from a mix of sources that also includes fossil fuels. Account is also taken of this.

The last classification context is Scope 3, or other indirect emissions. This group includes all the GHG emissions not directly caused by the organisation but that can be associated with its production. For example business trips connected with sales matters, or the commuting journeys of the employees, or even the emissions caused by the like cycle of the raw materials used at the company.

This classification aims to provide a carbon footprint of the company that is vital in drawing up strategies for improving the environmental impact of the company activities.

Identify direct emissions of GHGs from sources owned or controlled by the organization


Year201420152016
Report gross direct (Scope 1) GHG emissions in metric tons of CO2 equivalent3,639.003,934.233,977.43
Report gases included in the calculationAllAllAll
Report biogenic CO2 emissions000

Identify indirect emissions of GHGs that result from the generation of the electricity, heating, cooling, and steam which is purchased or acquired for own consumption by the organization.


Year201420152016
Report gross energy indirect (Scope 2) GHG emissions in metric tons of CO2 equivalent1,403.451,642.651,664.94
Report gases included in the calculationAllAllAll

Year201420152016
Report gross other indirect (Scope 3) GHG emissions in metric tons of CO2 equivalent, excluding indirect emissions from the generation of purchased or acquired electricity, heating, cooling, and steam consumed by the organization4,712.077,448.168,168.64

Assess which of the organization’s activities cause indirect emissions, and calculate the amounts involved


Year201420152016
Report gross other indirect (Scope 3) GHG emissions in metric tons of CO2 equivalent4,712.077,448.168,168.64
Report gases included in the calculationAllAllAll
Report biogenic CO2 emissions000

Report the types of GHG emissions included in the intensity ratio:


Year201420152016
Indirect emissions (tonnes)140316431665
Other indirect (tonnes)301301299
Flights (tonnes)441171477869
Total scope 1,2 and 3 (tonnes)99621302513811
Turnover M€65,0670,4378,91
Tonnes CO2 /M€153,11184,94175,02
Production260072934832960
Tonnes CO2/Kg Product0.380.440.42
Employees258270271
Tonnes CO2/ Employees38.6148.2450.96
It can be concluded that, thanks to the company policy of taking care to contain emissions, based in particular on updating the fleet of motor vehicles and trucks and on making heat production efficient, an increase was not recorded in proportion to the increase in the size of the business.

Greenhouse gas emission indicator


Year201420152016
Ton CO2/M€85,3283,4676,70
Ton CO2 / Ton Prod0,190,200,18
0.25
0.1875
0.125
0.0625
0
2014
2015
2016
Increasing staff awareness of environmental issues is a commitment that Valagro has also made in the past through specific projects such as Green Think, launched at the start of the 2013-2015 three-year period to promote the consumption of drinking water from dispensers in order to reduce the use of plastic bottles and their negative impact on the environment. To date, the project has achieved significant results:

Data on drinking water from dispenser (as of December 31, 2016)


Year201420152016
Litres purchased13,16613,94814,915
In terms of emissions, water discharges must also be considered, particularly with regard to industrial wastewater (namely, that coming out from all production lines).

All the wastewater is declared, surveyed and measured while, as far as the sewerage is concerned, no analysis is carried out on the waters from the company toilets.

Again in 2016, in line with the previous three years, a reduction in wastewater was recorded.
The industrial wastewater, after undergoing chemical-physical treatment, is stored in tanks for reuse within the production cycle (liquids unit).

Rainwater


201420152016
Destination3161836146
Quality of the water including treatment method (/)kg/year)COD: 1069
Nitrogen: 71
Phosphorus: 7
Metals: 11
COD: 94
Nitrogen: 11
Phosphorus: 2kg
Metals: 3
COD: 28
Nitrogen: 2,33
Phosphorus: 0,99
Metals: 0,76
Whether it was reused by another organizationNoNoNo

Black waters


201420152016
DestinationSewerageSewerageSewerage
Whether it was reused by another organizationNoNoNo

Industrial wastewater processed for purification


50
37.5
25
12.5
0
2014
2015
2016

Industrial wastewater


201420152016
Destination4000
Quality of the water including treatment method (mg/l)COD: 334
Nitrogen: 9,84
Phenols: 0,03
BOD: 30
COD: 112
Nitrogen: 10,13
Phenols:0,18
BOD: 18
COD: 180
Nitrogen: 12
Phenols: 0,39
BOD: 5
Whether it was reused by another organizationNoNoNo
Main use water not processed for purification:
  • Reduction of wastewater through adoption of washing systems with lower water consumption (power washers, nozzles, etc.).
  • Recovery of the washing water of each product in its respective formulation reaction.

3.2.2 Water and energy consumption


The supply and consumption of water and energy are essential for the company's activities and are a fundamental factor in the overall impact that the company has on the surrounding environment.

As far as water consumption is concerned, withdrawal from the ground water has declined in particular (it is drawn from two points), thanks to what can be shown in terms of the reuse of industrial wastewater.

Identify the total volume of water withdrawn from any water source


201420152016
Report the total volume of water withdrawn418284240136310

Identify water sources significantly affected by water withdrawal by the organization


201420152016
Report the total number of water sources significantly affected by withdrawal222

201420152016
Report the total volume of water recycled and reused as a percentage of the total water withdrawal reported under Indicator G4-EN8.86036984971
With regard to energy consumption, the increase in the overall demand for energy (electricity and heat) recorded in 2016 is due to the increase in production.

Total energy


Year201420152016
Total energy (heat + electricity) tep/year234323932445
Total energy (heat + electricity) MWh/year220502236622874
25000
18750
12500
6250
0
2014
2015
2016
However if we consider the intensity, that compares the energy used by the various sources with the productivity, this parameter is down in 2016, a clear sign of an increasing optimisation of energy consumption.

201420152016
Report the energy intensity ratio (TJ/Ton)5,03765,22454,7149
Report the types of energy included in the intensity ratioAllAllAll
Report whether the ratio uses energy consumed within the organization, outside of it or both.WithinWithinWithin

201420152016
Identify the types of energy (fuel, electricity, heating, cooling, and steam) consumed within the organization (TJ)131013,20153329,69155404,46
Report fuel consumption for renewable fuel source4,814,940,66
As far as the use of energy from renewable sources is concerned, it is necessary to consider the photo-voltaic plant that Valagro has been using for some years and that, despite the fall in the percentage of energy produced because of the physiological deterioration of the solar panels, continues to represent an important source of the sustainable provision of energy.

Electricity from solar panels


Year201420152016
Electrical energy / MWh / Year454,58461,72428,50
15
11.25
7.5
3.75
0
2014
2015
2016
The production of electricity from the solar panels installed on some of the factory roofs will be combined with that obtained from the cogeneration system.

The cogeneration plant is an integral part of the operations required to adhere to the ISO 50001 standard (and the related certification acquired in 2015), thanks to which Valagro is committed to increasing the efficiency of its energy management systems and reducing its fuel consumption and environmental impact. In 2016 Valagro completed construction of the plant and the installation of the 2 turbines fuelled by natural gas. From the consumption of natural gas it is possible to obtain both heat and electricity, improving the yield from the use of the fossil fuel by over 50%.
Moreover there is expected to be a reduction in drawing electricity from the grid in that it will be produced within the plant, limiting (to 2-3%) the losses resulting from the transmission of the current.

3.2.3 Waste


The production and recycling of waste is also an important component of environmental sustainability.
However it can be seen that in proportion to the increase in productivity, the quantity of hazardous waste produced remains more or less constant.

Identify the weight of waste created by the organization’s operations


201420152016
Hazardous230842901636229
Non-hazardous257530313046357087

Indicator of total non-hazardous and hazardous waste


Year201420152016
Total waste (Kg/ton FP*)10,7911,6611,93
Non hazardous (Kg/ton FP*)9,9010,6710,83
Hazardous (Kg/ton FP*)0,890,991,10
* Kg waste/ton of Finished Product
91.75%
8.25%
91.5%
8.5%
90.78%
9.22%
2014
2015
2016


In particular, looking at the three year period 2014-2016, it can be seen that the quantity of recycled waste is increased while that of the discharged waste is proportionally reduced.

Report the total weight of hazardous and non-hazardous waste, by the following disposal methods


201420152016
Recycling230820274254324508
Composting19870422023190
Deep well injection000
Landfill373106367242361
On-site storage000

Total weight of hazardous waste transported by destination


201420152016
Total weight (kg)230842901636229
The recycling of non-hazardous waste is an established activity that the company performs in full compliance with current regulations and particularly with regard to environmental protection.

Recycled waste


Year201420152016
Plastics (Kg/year)68,76082,440136,720
Paper cardboard (Kg/year)109,000133,920128,880
Iron/Steel (Kg/year)3,6809,46014,880
Other waste* (Kg/year)62,35036,01442,960
*Toner, oils, neon, glass, wood, electronic equipment
28.2%
44.71%
25.57%
1.52%
31.48%
51.15%
13.75%
3.62%
42.27%
39.85%
13.28%
4.6%
2014
2015
2016


4

Safety and welfare of employees


Valagro has always devoted attention and commitment to the health and safety of its employees. For this reason, the three year period 2014-2016 also shows a positive trend in accident indicators.
The results obtained are in line with those of companies, such as Valagro, which are part of the Responsible Care project and have a safety record above the average for the chemical industry as a whole.

Type of injury and rates of injury, occupational diseases, lost days, and absenteeism, and total number of work-related fatalities


201420152016
Injury01.540
Occupational diseases000
Severity Index0500

Safety investiments


Year201420152016
Plan safety (€)269,000.00218,641.99170.441.64
Fire safety (€)3,000.0049,793.0512.966.70
Total safety (€)272,000.00397,000.00183.408.34