Opportunity and risk management of sustainability

Thanks to its analysis of the risks and opportunities of the important sustainability aspects, Ansaldo STS has been able to act in advance and effectively to preserve the economic, social and environmental value of its business.

Ansaldo STS has described the risk and how it is managed for each relevant aspect. Correct management is an opportunity as it allows the company to generate greater value over time.

The sustainability aspects were graded as follows: low (1, 2), medium (3, 4) and high (5, 6) showing the valuation of the risks before they are managed with: the higher their score, the greater the attention paid by the company to reduce the residual risk and, in most cases, transform it into an opportunity for growth.

ASPECTSSTAKEHOLDERS
INVOLVED
RISKSCORE
Low (1,2)
Medium (3,4)
High (5,6)
RISK MANAGEMENTOPPORTUNITY
TRANSPARENCY
AND ANTICORRUPTION
  • ALL
    STAKEHOLDERS
  • Commission of crimes and especially corruption by key company personnel, also assisted by consultants and sales representatives, in markets characterised by little transparency and high corruption levels
  • Consider the risk of  non-transparency and corruption in the measurement of country risk when deciding what markets to enter and work on
  • Tailored organisational and procedural measures to prevent the commission of crimes and especially the risk of corruption
  • Promotion of Ansaldo STS Group's ethical reputation internally and externally, by
    committing to compliance with ethical standards and existing organisational and procedural rules
PRODUCT/
PROCESS
INNOVATION
  • CUSTOMERS
  • HUMAN
    RESOURCES
  • More competition due to greater signalling product standardisation and tougher competition in the emerging countries
  • Underestimation of this sector's innovation needs
  • Integrated organisational and operating structure, designed to achieve greater standardisation of products/solutions and better operating efficiency and effectiveness
  • Internal definition processes of the product portfolio and check of technological competition
  • Increased competitive edge
  • Better financial returns
  • Greater ability to exploit commercial opportunities
CUSTOMER
SATISFACTION
  • CUSTOMERS
  • HUMAN
    RESOURCES
  • Inadequate management of customer satisfaction and customer complaints. A late and/or inadequate response to customers and expected satisfaction levels could compromise Ansaldo STS' relations with customers and worsen their interaction for ongoing projects
  • Assembly of an inter-functional customer satisfaction team
  • Monitoring and monthly report to senior management on the 22 most critical customer satisfaction projects
  • Customer satisfaction interviews with key customers, after issue of a presentation letter from the CEO;
  • Half-yearly customer satisfaction selfassessments by the 55 main project teams
  • After roll-out" analysis and customer feedback to improve product reliability
  • Global management of the customer satisfaction activity for senior management
  • Coordination at Finmeccanica level to share best practices
  • Improved relationships with customers
  • Improved products
  • Improved customer interface for ongoing projects
  • Greater ability to exploit commercial opportunities
DIRECT AND INDIRECT GREENHOUSE GAS
EMISSIONS
  • HUMAN RESOURCES
  • ENVIRONMENT
  • SUPPLY CHAIN
  • LOCAL COMMUNITIES
  • Possible negative effects on activities to be performed influenced by climate change
  • Risks related to changes in regulations and standards that could lead to obsolescence of part of the company's assets
  • Little awareness and involvement of resources in these aspects
  • Analysis and valuation of the risk and vulnerability to climate change at international level
  • Definition of an action plan to guarantee that the improvement measures are: adopted promptly, are< effective and consistent over time
  • Greater ability to manage climate change
  • Increased competitive edge:
    development of new products and processes with reduced GHG emissions
  • Improved reputation thanks to the company's ability to respond effectively to any widespread public concerns
ENERGY
CONSUMPTION
  • HUMAN
    RESOURCES
  • ENVIRONMENT
    /LOCAL
    COMMUNITIES
  • Rise in energy consumption costs
  • Less able to compete
  • Investments to reduce consumption checking potential profitability
  • Adoption of projects designed to reduce facilities' energy consumption and the use of renewable energy sources
  • System to monitor changes in laws at an international level
  • Better financial returns
WASTE AND WASTEWATER
MANAGEMENT
  • HUMAN RESOURCES
  • ENVIRONMENT
    /LOCAL COMMUNITIES
  • Non-compliance with regulations by the company and its suppliers for projects/activities
  • Changes in laws leading to risks of sanctions
  • System to monitor changes in laws at an international level
  • Adoption of projects designed to reduce facilities' waste generation and wastewater management
  • Better financial returns
  • Better reputation
ENVIRONMENTAL
IMPACT OF
PRODUCTS
  • CUSTOMERS
  • HUMAN
    RESOURCES
  • ENVIRONMENT
  • Environmental impact of production processes, product composition, energy consumption and reduction or elimination of hazardous substances
  • Special R&D projects
  • Partnerships with suppliers to develop components that comply with high robustness, safety and environmental standards
  • Greater ability to compete with products and solutions that best meet new market requirements
  • Better financial returns
WORKERS'
HEALTH AND
SAFETY
  • HUMAN
    RESOURCES
  • SUPPLIERS
  • LOCAL
    COMMUNITIES
  • Requirement to define and apply a safety management model given current local egulations
  • Rise in the number of accidents and injuries Requirement to define
    and guarantee specialised resources to manage health and safety aspects
  • Definition of systems to supervise and monitor  compliance of production with local laws
  • Select specific resources for each project
  • More control over activities and smaller risk of accidents and injuries
  • Better reputation
ETHICAL CONTROL OF THE SUPPLY
CHAIN
  • SUPPLIERS
  • LOCAL
    COMMUNITIES
  • CUSTOMERS
  • Rise in fraudulent conduct, also due to the current economic situation
  • Underestimation of our customers' focus on sustainable purchasing and
    loss of competitiveness if products do not meet minimum standards requested by the market
  • Reputation risks and disruptions in the supply chain with clear negative impact on the company's overall working and its financial performance
  • Suppliers' agreement to Ansaldo STS' code of ethics as an essential condition to signing contracts and tenders
  • Review of the "General contract terms" to ensure compliance by both Ansaldo STS and its  suppliers with regulations about calls to tender and public sector tenders
  • Systematic approach to competitive sustainability to ensure customer satisfaction
  • Monitoring and assessment of the sustainability level along the supply chain, preferring the more sustainable suppliers
  • Integration of the general supply and tender terms with sanctions clauses
  • Monitor the supply chain, including economic, environmental and social impacts throughout the entire medium to long-term value chain
  • More transparent business relations
  • Foster a "sustainable" business culture with more critical suppliers increasing their CSR standards
  • Guarantee the sustainability of SMEs through the responsible management of the supply chain
  • Cut indirect and direct costs by introducing sustainable supply chain practices
RESPECT FOR LOCAL COMMUNITIES
  • LOCAL
    COMMUNITIES
  • Contractual specifications requirements that provide for a certain percentage of local supplies and labour in emerging countries where the required skills have not yet been developed or honed
  • Risk of negative economic, social and environmental impacts on local communities
  • Involvement of local suppliers that, if appropriately assisted, can gain the necessary skills
  • Involvement of international experienced suppliers that are committed to helping local companies
  • Assessment of environmental impact and monitoring
  • Membership of committees representing the local  stakeholders
  • Promotion of communication between the local authorities and citizens
  • Participation in programmes to develop local communities.
  • Increase in competition in the specific area
  • Find new competitive
    suppliers that can also
    be used in other areas
    benefitting competition
  • Improved reputation
  • More competitive due to
    development of ability to
    manage relations with the
    local communities