A strategy of responsibility
We have chosen to undertake a complete re-evaluation of our ESG strategy in order to adopt an increasingly responsible approach towards the market, the environment, our employees and the community, with the aim of achieving sustainable success and long-lasting benefits for all. This journey consists of a series of steps that will lead us towards the Pietro Fiorentini of tomorrow, a Company that wants to continue to be successful, while helping to build a better future. Because sustainability should not be a cost or an obligation, but an investment and an opportunity for everybody.
Review of purpose, vision and mission
Our purpose is more than a mere declaration of intent or a value proposition. It defines the value of an organisation within society, which allows it to simultaneously grow its business while making a positive impact on the world. Thus, it represents the why of every organisation. In defining our new purpose, in addition to our vision and mission, we decided to expand our horizons to make our commitment to issues, such as digitalisation, the energy transition and a more responsible and efficient use of the planet’s resources, even more concrete.
First ESG assessment and KPI identification
The starting point was the launch of a benchmark analysis on a selected panel of companies, aimed at assessing our positioning in the socio-environmental field, compared to the main players in the sector and to the best practices in sustainability. From the list of indicators that emerged from this analysis, a plan of KPIs related to the Sustainable Development Goals (SDGs) of the United Nations 2030 Agenda was defined. The plan includes the indicators related to the GRI standards, which is responsible for managing the data and the main definitions and calculation methodologies to be used. These KPIs represent the litmus test of how we intend to measure our efforts and progresses against the various sustainability goals that we have set for ourselves.
Definition of the Materiality Matrix
The Materiality Matrix incorporates the priorities of the Company’s external and internal stakeholders within a summary statement that helps direct our efforts and investments into the activities deemed most relevant to our stakeholders. It is a crucial tool that should not be considered in a static sense, but rather as being in continuous evolution and state of update.
Publication of the 2020 Sustainability Report
The Sustainability Report is used to share the progress of our sustainability performance with our stakeholders, with the aim of communicating our medium-to-long-term strategic guidelines, goals, initiatives and concrete results transparently, thereby highlighting how Pietro Fiorentini can create shared value with the communities in which it operates and the positive impacts generated for the environment through the link between the SDGs. It is a multi-channel tool, structured in such a way as to be used and updated to communicate the results of the initiatives launched by the Company.
Gap-analysis and launch of specific ESG projects
Once finalized the 2020 Sustainability Report, we have conducted a gap-analysis to identify the main improvement areas in ESG field and the initiatives to be implemented as a priority. As a direct consequence, we have started some projects with the aim to communicate the Sustainability Report results to the subjects involved in the reporting and to favour a more sustainable management of the supply chain.
Materiality Matrix update
In order to update the main action lines related to sustainability, we have updated the list of potentially relevant issues and we have submitted it to the company management to be reviewed. The relevance and the current control level of each issue have been ranked according to business’ and internal stakeholders’ perspective. With regards to the external perspective, we have enhanced the result of the engagement process which have been carried out at the beginning of 2021.
Definitions of ESG objectives associated to material issues
The process of updating the Materiality Matrix has helped to identify specific ESG targets to be pursued over the next two years, coherently with the main corporate strategic lines. Each target has been associated with one of the 13 material issues, and these issues find a precise link with the Sustainable Development Goals (SDGs) which are more relevant for Pietro Fiorentini’s business.
Publication of the 2021 Sustainability Report
In 2022, Pietro Fiorentini’s commitment to sustainability and transparency continued with the publication of 2021 Sustainability Report, drawn up on a voluntary basis to present the main ESG performances of the year. Its publication has been aligned with the publication of the Consolidated Financial Statement. The drafting of the document was based on the qualitative data and information collected for the companies subject to the report (Pietro Fiorentini, TIV Valves, Gazfio, Pietro Fiorentini USA and Fiorentini Hungary).
Establishment of the Sustainability Committee
In January 2021, Pietro Fiorentini established an ESG function to assess the company’s approach to sustainability issues and guide its improvement path. In 2022, the company took a further step by establishing a new body: the Sustainability Committee, which is responsible for guiding the decision-making process of top management by taking ESG issues into primary consideration. The Committee acts as a link between the Board of Directors, with which it collaborates in defining strategies, and the functions dedicated to the implementation of the various projects.
Update of the stakeholder engagement activity
In line with what was first carried out in 2021, we shared an evaluation questionnaire with our main stakeholders in which we asked them to indicate the levels of importance, from their point of view, of the material issues related to sustainability, and how much they should be a priority for Pietro Fiorentini. The results of the questionnaire allowed us to re-evaluate the material topics considered most important by our stakeholders. Pietro Fiorentini’s communication with its stakeholders did not end with this survey, but continues on an ongoing basis to monitor the results of the undertaken projects and to further refine the perception of their expectations.
Definition of the impacts related to material issues
In their latest update, the GRI standards identified four types of impacts: actual positive, potential positive, actual negative and potential negative. Through the involvement of the Sustainability Committee, of the management and of key function contact people, the impacts related to each material issue were identified for the four types mentioned above. The impacts, by means of a numerical evaluation, were sorted according to their level of relevance, thus determining the final list of material topics and their relative positive, negative, actual, and potential impacts.
Update of the ESG targets with 2023-25 horizon
In 2021, the company set specific ESG goals to be pursued during the two-year period 2022-23, consistent with the main strategic guidelines. Most of the targets set were achieved during 2022, while others are still being implemented and continue to be monitored. Based on the results of the impact analysis and with a view to further demonstrating its commitment to ESG issues, Pietro Fiorentini has decided to set new objectives associated with the 13 material issues, even more challenging than the previous ones, to be achieved by 2025.
The journey goes on
Our sustainability journey has no stops, and the goals we have reached are just starting points upon which to build even more ambitious targets. Because here, in Pietro Fiorentini, our commitment to improve never stops.